Document:

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>EMPLOYMENT AGREEMENT </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>THIS AGREEMENT between Tegal
Corporation (&#147;Tegal&#148;) and Tom Mika (&#147;Mika&#148;) is dated and entered into
as of this 12th day of August, 2002. Tegal and Mika hereby agree as follows: </FONT></P>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>RECITALS</U> </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mika
and Tegal have decided to enter into an employment agreement and have agreed upon the
terms of such employment, which terms are set forth herein. </FONT></P>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>AGREEMENT</U> </FONT></P>

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               <TD ALIGN=RIGHT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1. </FONT></TD>
               <TD ALIGN=LEFT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
               <TD WIDTH=94%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               <U>Employment</U>. As of the date hereof, Tegal will employ Mika, and Mika will
               accept employment with Tegal, as its Executive Vice President &amp; Chief
               Financial Officer, with such duties and responsibilities consistent with such
               offices. </FONT></P></TD>
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               <BR>

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               <TD ALIGN=RIGHT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2. </FONT></TD>
               <TD ALIGN=LEFT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
               <TD WIDTH=94%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               <U>Other Business</U>. Mika will devote his time, attention and effort to
               Tegal&#146;s business on a substantially full-time basis. Notwithstanding the
               foregoing, Mika shall be entitled to serve on the Board of Directors of other
               corporations, as Mika may elect from time to time, so long as such service is
               approved by the Board. </FONT></P></TD>
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               <BR>

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               <TD ALIGN=RIGHT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3. </FONT></TD>
               <TD ALIGN=LEFT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
               <TD WIDTH=94%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               <U>Term</U>. This Agreement shall continue until the twelve-month anniversary of
               the date hereof. </FONT></P></TD>
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               <BR>

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               <TD ALIGN=RIGHT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>4. </FONT></TD>
               <TD ALIGN=LEFT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
               <TD WIDTH=94%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               <U>Salary</U>. Mika&#146;s base salary (the &#147;Base Salary&#148;) shall be
               $175,000.00 per year. Mika&#146;s salary will be temporarily reduced by 20%, to
               $140,000.00, until such time as cost reduction measures are lifted and full pay
               is reinstated to all Tegal employees. Mika&#146;s salary will be paid in
               bi-weekly installments at the same intervals as other employees of Tegal and is
               subject to discretionary increases in accordance with Tegal&#146;s normal review
               procedures and policies. </FONT></P></TD>
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               <TD ALIGN=RIGHT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>5. </FONT></TD>
               <TD ALIGN=LEFT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
               <TD WIDTH=94%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               <U>Annual Bonus</U>. In addition to his Base Salary, and subject to the
               achievements of certain goals established in accordance with this Section 5,
               Mika shall be paid an annual bonus (the &#147;Bonus&#148;) during the term of
               this Agreement in an amount not less than 35% of Base Salary. Each year the
               Board shall approve objective, quantifiable, and reasonably attainable annual
               goals, which shall be reduced to writing and presented by the CEO to the Board
               on or before the 60<SUP>th</SUP> day following the commencement of each fiscal
               year during the term of this Agreement. The actual Bonus paid shall be evaluated
               using the Board-approved Bonus plan methodology. The Bonus shall be paid in cash
               when bonuses are generally paid to other senior executives of Tegal for the
               relevant fiscal year. </FONT></P></TD>
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               <TD ALIGN=RIGHT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>6. </FONT></TD>
               <TD ALIGN=LEFT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
               <TD WIDTH=94%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               <U>Stock Offering</U>. Upon signing of this Agreement, the Board will grant
               Mika, as soon as practical, the option to purchase 100,000 shares of Tegal
               Common Stock with a four-year vesting period, at the prevailing price
               established by the Board of Directors. This grant is subject to the terms and
               conditions of the Tegal Stock Option Plan. </FONT></P></TD>
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               <BR>

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               <TD ALIGN=RIGHT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>7. </FONT></TD>
               <TD ALIGN=LEFT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
               <TD WIDTH=94%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               <U>Reimbursement of Expenses</U>. Tegal shall reimburse Mika for all reasonable
               out-of-pocket expenditures incurred by Mika in performing his obligations
               hereunder, including, without limitation, telephone, fax, and travel-related
               expenses. All reimbursable expenses shall be reimbursed in accordance with
               Tegal&#146;s standard practices as in effect from time to time, upon delivery by
               Mika of an itemized statement, accompanied by appropriate receipts, describing
               the reimbursable expenses incurred and approved by Mike Parodi. Tegal shall
               reimburse Mika for all car and related expenses for the term of this Agreement
               to a maximum of $600.00 per month. </FONT></P></TD>
               </TR>
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               <TD ALIGN=RIGHT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>8. </FONT></TD>
               <TD ALIGN=LEFT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
               <TD WIDTH=94%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               <U>Relocation Costs</U>. Tegal will reimburse Mika for up to a maximum of
               $15,000.00 in expenses associated with his relocation (above and beyond the move
               itself), including any broker&#146;s fees or closing costs related to the sale
               of the Maryland property. These expenses will be reimbursed through a receipted
               expense report, approved by Mike Parodi. The actual move will be handled by
               corporate movers, arranged by Tegal, and directly billed to the Company. Please
               contact Diane Walsh when you are ready to begin this process. </FONT></P></TD>
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               <TD ALIGN=RIGHT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>9. </FONT></TD>
               <TD ALIGN=LEFT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
               <TD WIDTH=94%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               <U>Benefits</U>. During the term of the Agreement, Mika will be entitled to
               participate in all fringe benefit programs as shall be provided from time to
               time to Tegal&#146;s employees. Currently, those benefits include medical and
               dental plans, a flexible spending account, 401(k) savings plan, Employee
               Qualified Stock Purchase Plan, life insurance, short and long-term disability
               insurance, sick pay, and an employee assistance program. </FONT></P></TD>
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               <BR>

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<TD WIDTH="6%"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH="94%"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
According
to the current Tegal Vacation Policy, Mika will earn two (2) weeks vacation during the
first year of employment with hours accruing monthly. The vacation accrual rate will
increase one day per year for your second through fifth years of employment. </FONT></TD>
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               10.&nbsp; </FONT></TD>
               <TD ALIGN=LEFT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
               <TD WIDTH=94%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
          <U>Termination</U>. Employment of Mika pursuant to this Agreement may be
          terminated as follows: <br>
&nbsp;</FONT></P></TD>
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<TD WIDTH=26><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=26><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=44><FONT FACE="Times New Roman, Times, Serif" SIZE=2>10.1 </FONT></TD>
<TD width="5"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=799><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
With or without cause, Tegal may terminate the employment of Mika at any time during the
term of employment, upon 30 days&#146; prior written notice to Mika. </FONT></TD>
</TR>
<TR VALIGN=TOP>
<TD WIDTH=26>&nbsp;</TD>
<TD WIDTH=26>&nbsp;</TD>
<TD WIDTH=44><font size="2">10.2</font></TD>
<TD width="5">&nbsp;</TD>
<TD WIDTH=799><font size="2">Mika may terminate his employment at any time upon
30 days prior written notice to Tegal.

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<FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;11. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Termination Payments. </FONT>

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<TD WIDTH=44><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=7><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=44><FONT FACE="Times New Roman, Times, Serif" SIZE=2>11.1 </FONT></TD>
<TD width="5"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=800><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
<I>Termination by Employer</I>. If Tegal terminates Mika&#146;s employment prior to his
relocation to the Petaluma Area and without cause, Mika shall continue to receive his then
effective Base Salary and benefits, pursuant to Section 9 hereof, for twelve (12) months
following the effective date of such termination (the &#147;Salary and Benefits
Continuance&#148;). If Tegal terminates Mika&#146;s employment after his relocation to the
Petaluma Area and without cause, Mika shall continue to receive his then effective Base
Salary and benefits for twelve (12) months following the date of such termination and the
Salary and Benefits Continuance shall be extended beyond the first twelve (12) months on a
month-to-month basis, to a maximum of eighteen (18) months, should Mika remain
continuously unemployed following the effective date of termination. </FONT></TD>
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<TD WIDTH=44><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=6><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=44><FONT FACE="Times New Roman, Times, Serif" SIZE=2>11.2 </FONT></TD>
<TD width="4"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=802><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
<I>Termination by Employee</I>. In the case of voluntary termination of Mika&#146;s
employment by Mika, except when he terminates his employment because of good reason or
breach of the Agreement by Tegal, Mika shall not be entitled to a Salary and Benefits
Continuance. If Mika terminates his employment because of good reason, as hereinafter
defined, Mika shall be entitled to the Salary and Benefits Continuance. For Purpose of the
Agreement, &#147;good reason&#148; shall mean (i) any material breach of this Agreement by
Tegal; (ii) the assignment to Mika of any duties, or the substantial reduction of
Mika&#146;s duties, either of which is inconsistent with Mika&#146;s position as Executive
Vice President and Chief Financial Officer; or (iii) any change in Mika&#146;s reporting
relationship which results in his not reporting directly to the President and CEO. </FONT></TD>
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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>12.&nbsp;&nbsp;&nbsp;&nbsp;
          <U>Termination; Definitions: Special Provisions</U>. </FONT></P>

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<TD WIDTH=32><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=1><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=21><FONT FACE="Times New Roman, Times, Serif" SIZE=2>12.1 </FONT></TD>
<TD width="6"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=841><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
<I>Cause</I>. Wherever reference is made in this Agreement to Termination being with or
without cause, &#147;cause&#148; means cause given by Mika to Tegal and is limited to the
following: </FONT></TD>
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          <TD ALIGN=RIGHT WIDTH=9%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(a) </FONT></TD>
          <TD ALIGN=LEFT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
          <TD WIDTH=88%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
          Repeated failure or refusal to carry out the reasonable directions of the
          President and CEO, which directions are consistent with Mika&#146;s duties as
          set forth herein; </FONT></P></TD>
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          <BR>

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          <TD ALIGN=RIGHT WIDTH=9%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(b) </FONT></TD>
          <TD ALIGN=LEFT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
          <TD WIDTH=88%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
          Conviction for violation of a state or federal criminal law involving the
          commission of a felony; or </FONT></P></TD>
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          <BR>

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          <TD ALIGN=RIGHT WIDTH=9%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(c) </FONT></TD>
          <TD ALIGN=LEFT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
          <TD WIDTH=88%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
          Any material breach of the Agreement, if not corrected as provided in Section
          12.2 below. </FONT></P></TD>
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          <BR>

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<TD WIDTH=31><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=1><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=21><FONT FACE="Times New Roman, Times, Serif" SIZE=2>12.2 </FONT></TD>
<TD width="7"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=841><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
<I>Breach</I>. Whenever a breach of this Agreement by either party is relied upon as
justification for any action taken by a party pursuant to any provision of this Agreement,
before such action is taken, the party asserting the breach shall give the other party at
least 90 days&#146; prior written notice of the existence and nature of the breach and the
opportunity to correct it during the 90-day period. </FONT></TD>
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<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>13. <u>General Provisions</u>. </FONT></P>

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<TD WIDTH=30><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=1><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=24><FONT FACE="Times New Roman, Times, Serif" SIZE=2>13.1 </FONT></TD>
<TD width="4"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=842><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
<I>Severability</I>. In the event that any provision of this Agreement shall be determined
by any court of competent jurisdiction to be unenforceable or otherwise invalid as
written, the same shall be enforced and validated to the extent permitted by law. All
provisions of this Agreement are severable, and the unenforceability or invalidity of any
single provision hereof shall not affect the remaining provisions. </FONT></TD>
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<TD WIDTH=28><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=1><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=26><FONT FACE="Times New Roman, Times, Serif" SIZE=2>13.2 </FONT></TD>
<TD width="3"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=843><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
<I>Employment</I>. Nothing in this Agreement shall obligate Tegal to continue to retain
Mika as an employee. Mika understands that this means that Tegal has and will continue to
have the right to terminate his employment for any reason, with or without cause or prior
notice. </FONT></TD>
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<TD WIDTH=44><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=14><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=25><FONT FACE="Times New Roman, Times, Serif" SIZE=2>13.3 </FONT></TD>
<TD width="13"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=804><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
<I>Entire Agreement</I>. This Agreement contains the sole and entire agreement and
understanding between Tegal and Mika with respect to the subject matter hereof, and
supersedes and replaces any prior agreement to the extent any such agreement is
inconsistent herewith. This Agreement can be amended, modified, released or changed in
whole or in part only by a written agreement executed by Tegal and Mika. </FONT></TD>
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<TD WIDTH="7%"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH="93%"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
IN
WITNESS WHEREOF, the parties have executed and entered into this Agreement on the date set
forth above. </FONT></TD>
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                                                                  <td width="50%">&nbsp;</td>
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                                                                  <font size="2">
                                                                  TEGAL
                                                                  CORPORATION</font></td>
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                                                                  <td width="50%">&nbsp;</td>
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                                                                  <td width="50%">
                                                                  <font size="2">
                                                                  Dated: 8/12/02</font></td>
                                                                  <td width="50%">
                                                                  <font size="2">By:
                                                                  <u>/s/   Michael L. Parodi&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
                                                                  </u></font>
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                                                                  <font size="2">
                                                                  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Michael L. Parodi
                                                                  </font></td>
                                                                </tr>
                                                                <tr>
                                                                  <td width="50%">&nbsp;</td>
                                                                  <td width="50%">
                                                                  <font size="2">
                                                                  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Chairman of
                                                                  the Board, <br>
                                                                  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;President
                                                                  or Vice
                                                                  President
                                                                  </font></td>
                                                                </tr>
                                                                <tr>
                                                                  <td width="50%">&nbsp;</td>
                                                                  <td width="50%">&nbsp;</td>
                                                                </tr>
                                                                <tr>
                                                                  <td width="50%">
                                                                  <font size="2">
                                                                  Dated 8/12/02</font></td>
                                                                  <td width="50%">
                                                                  <font size="2">By:
                                                                  <u>/s/   Tom
                                                                  Mika&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
                                                                  </u></font>
                                                                  </td>
                                                                </tr>
                                                                <tr>
                                                                  <td width="50%">&nbsp;</td>
                                                                  <td width="50%">
                                                                  <font size="2">
                                                                  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tom Mika</font></td>
                                                                </tr>
                                                                <tr>
                                                                  <td width="50%">&nbsp;</td>
                                                                  <td width="50%">
                                                                  <font size="2">
                                                                  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
                                                                  Executive Vice
                                                                  President<br>
                                                                  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;and
                                                                  Chief
                                                                  Financial
                                                                  Officer</font></td>
                                                                </tr>
                                                                <tr>
                                                                  <td width="50%">&nbsp;</td>
                                                                  <td width="50%">&nbsp;</td>
                                                                </tr>
</table><!-- MARKER FORMAT-SHEET="Head Sub 3 Left" FSL="Default" -->
<A NAME=A001></A>
<P ALIGN=center><b><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Employment
Agreement </FONT></b></P>

<!-- MARKER FORMAT-SHEET="Para Large Indent" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This
Agreement between Tegal Corporation (&#147;Tegal&#148;) and Carole Anne Demachkie
(&#147;Demachkie&#148;) is dated and entered into as of August 30, 2002. Tegal and
Demachkie hereby agree as follows: </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush" FSL="Default" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.
          <U>Employment.</U> As of the date hereof, Tegal will employ Demachkie and
          Demachkie will accept employment by Tegal, as Vice President and General Manager
          of Sputtered Films, with such duties and responsibilities consistent with such
          offices. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush" FSL="Default" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.
          <U>Term.</U> This Agreement shall continue until the eighteen month anniversary
          of the date hereof. At the end of the initial eighteen (18) month term,
          Demachkie will continue on as an &#147;at will employee&#148; with the same
          terms and benefits granted herein or may renew the agreement if employee and
          employer mutually agree to do so. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent" FSL="Default" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.
          <U>Salary.</U> Demachkie&#146;s base salary shall be $120,000.00 annually.
          Demachkie&#146;s salary will be temporarily reduced by 20% to $96,000.00, until
          such time as full pay is reinstated in accordance with Section 10.7 of the
          &#147;Agreement and Plan of Merger&#148;, dated as of August 13, 2002.
          Demachkie&#146;s salary will also be subject to discretionary increases in
          accordance with Tegal&#146;s normal review procedures and policies. The base pay
          will be paid in bi-weekly installments. This position is classified as Exempt. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Hang " FSL="Default" -->
     <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
          <TR VALIGN=TOP>
          <TD ALIGN=LEFT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
          &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;&nbsp; </FONT></TD>
          <TD WIDTH=97%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
          <U>Hire Date.</U> Demachkie&#146;s hire date for employment and benefits
          purposes will be carried-over from Sputtered Films (&#147;SF&#148;). </FONT></P></TD>
          </TR>
          </TABLE>
          <BR>

<!-- MARKER FORMAT-SHEET="Para (List) Flush" FSL="Default" -->
     <FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.
          <U>Health &amp; Savings Benefits &amp; Vacation.</U> During the term of this
          Agreement, Demachkie will be entitled to participate in all fringe benefit
          programs as shall be provided from time to time to Tegal&#146;s employees.
          Currently Tegal&#146;s fringe benefit programs include medical and dental plans,
          flexible spending account, 401(k) savings plan, Employee Qualified Stock
          Purchase Plan, sick pay, vacation pay, life insurance, short and long term
          disability insurance, and an employee assistance program. </FONT>

<!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tegal reserves the right to modify or
eliminate any employee benefit and/or policies as necessary and prudent. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush" FSL="Default" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.
          <U>Retention Bonus.</U> If Demachkie remains actively employed with Tegal for
          the first full twelve months of this Agreement, a bonus of $24,000.00 will be
          paid within 30 days of the twelve month anniversary of the signing of this
          Agreement. In the event that Demachkie&#146;s employment is terminated by Tegal
          without cause within the twelve-month period, or in the event that Demachkie
          shall terminate her employment for reason of a mandated change of location from
          Santa Barbara, CA, Demachkie shall be entitled to receive the retention bonus on
          a prorata basis for the time served through the twelve-month period. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent" FSL="Default" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.
          <U>Stock Options</U>. Tegal will grant Demachkie, subject to Tegal Board
          approval, an option to purchase 30,000 shares of Tegal Common Stock with a four
          year vesting period, at the prevailing price established by the Board of
          Directors. This grant is subject to the terms and conditions of the Tegal Stock
          Option Plan. Demachkie will receive documentation from our Finance Department
          once this proposal has received Board confirmation. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent" FSL="Default" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.
          <U>Maintaining Confidential Information/Property Rights</U>. Demachkie agrees to
          sign and abide by the enclosed Tegal policies regarding Confidential &amp;
          Proprietary Information and Intellectual Property/Property Rights. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent" FSL="Default" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.
          <U>Severability.</U> In the event that any provision of this Agreement shall be
          determined by any court of competent jurisdiction to be unenforceable or
          otherwise invalid as written, the same shall be enforced and validated to the
          extent permitted by law. All provisions of this Agreement are severable, and the
          unenforceability or invalidity of any single provision hereof shall not affect
          the remaining provisions. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush" FSL="Default" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.
          <U>Termination.</U> The term of Demachkie&#146;s employment hereunder may be
          terminated by either party at any time, with or without cause and with or
          without prior notice. Until the term of Demachkie&#146;s employment hereunder is
          terminated, all other terms and provisions of this contract shall remain in full
          force and effect. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent" FSL="Default" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.
          <U>Entire Agreement.</U> This Agreement contains the sole and entire agreement
          and understanding between Tegal and Demachkie with respect to the subject matter
          hereof, and supersedes and replaces any prior agreement to the extent any such
          agreement is inconsistent herewith. This Agreement can be amended, modified,
          released or changed in whole or in part only by written agreement executed by
          Tegal and Demachkie. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Large Indent" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IN WITNESS WHEREOF,
the parties have executed and entered into this Agreement on the date set forth
above. </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Sub 3 Left" FSL="Default" -->
<A NAME=A002></A>
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>&nbsp;</I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;TEGAL
CORPORATION </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Sub 3 Left" FSL="Default" -->
<A NAME=A003></A>
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;BY:<i> </i>
<u>/s/ Michael L Parodi&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<br>
</u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Michael
L. Parodi, CEO and <br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Chairman of the Board of Directors
<br>
&nbsp;</FONT></P>

<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>/s/
Carole Anne Demachkie&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<br>
</u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;CAROLE ANNE DEMACHKIE </FONT></P>

<FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Date:
8/30/02

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00053-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00053-of-00352.parquet"}]]