Document:

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<A NAME=A001></A>
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>INTELLECTUAL PROPERTY
SECURITY AGREEMENT </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This
Intellectual Property Security Agreement is entered into as of June 26, 2002 by and
between SILICON VALLEY BANK (&#147;Secured Party&#148;) and TEGAL CORPORATION
(&#147;Grantor&#148;). </FONT></P>

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<A NAME=A002></A>
<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;A. Secured
     Party and Borrower are entering into that certain Loan and Security
     Agreement by dated of even date herewith (as the same may be amended,
     modified or supplemented from time to time, the &#147;Loan Agreement&#148;;
     capitalized terms used herein which are not defined, have the meanings set
     forth in the Loan Agreement). </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. Pursuant to
     the terms of the Loan Agreement, Grantor has granted to Secured Party a
     security interest in all of Grantor&#146;s right, title and interest, whether
     presently existing or hereafter acquired, in, to all Intellectual Property
     and all other Collateral. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NOW,
THEREFORE, as collateral security for the payment and performance when due of all of the
Obligations, Grantor hereby grants, represents, warrants, covenants and agrees as follows: </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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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.
          <U>Grant of Security Interest.</U> To secure all of the Obligations, Grantor
          grants and pledges to Secured Party a security interest in all of Grantor&#146;s
          right, title and interest in, to and under its Intellectual Property (as defined
          in the Loan Agreement), including without limitation the following: </FONT></P>

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     <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;(a)&nbsp;All of present and future United States registered copyrights and copyright
          registrations, including, without limitation, the registered copyrights, maskworks, software, computer programs and other works of authorship subject to
          United States copyright protection listed in <U>Exhibit A-1</U> to this
          Agreement (and including all of the exclusive rights afforded a copyright
          registrant in the United States under 17 U.S.C.<B> </B>&sect;106 and any
          exclusive rights which may in the future arise by act of Congress or otherwise)
          and all present and future applications for copyright registrations (including
          applications for copyright registrations of derivative works and compilations)
          (collectively, the &#147;Registered Copyrights&#148;), and any and all
          royalties, payments, and other amounts payable to Borrower in connection with
          the Registered Copyrights, together with all renewals and extensions of the
          Registered Copyrights, the right to recover for all past, present, and future
          infringements of the Registered Copyrights, and all computer programs, computer
          databases, computer program flow diagrams, source codes, object codes and all
          tangible property embodying or incorporating the Registered Copyrights, and all
          other rights of every kind whatsoever accruing thereunder or pertaining thereto. </FONT></P>

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     <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;(b)&nbsp;All present and future copyrights, maskworks, software, computer programs and
          other works of authorship subject to (or capable of becoming subject to) United
          States copyright protection which are not registered in the United States
          Copyright Office (the &#147;Unregistered Copyrights&#148;), whether now owned or
          hereafter acquired, including without limitation the Unregistered Copyrights
          listed in <U>Exhibit A-2</U> to this Agreement, and any and all royalties,
          payments, and other amounts payable to Borrower in connection with the
          Unregistered Copyrights, together with all renewals and extensions of the
          Unregistered Copyrights, the right to recover for all past, present, and future
          infringements of the Unregistered Copyrights, and all computer programs,
          computer databases, computer program flow diagrams, source codes, object codes
          and all tangible property embodying or incorporating the Unregistered
          Copyrights, and all other rights of every kind whatsoever accruing thereunder or
          pertaining thereto. The Registered Copyrights and the Unregistered Copyrights
          collectively are referred to herein as the &#147;Copyrights.&#148; </FONT></P>

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     <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;(c)&nbsp;All right, title and interest in and to any and all present and future license
          agreements with respect to the Copyrights. </FONT></P>

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     <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;(d)&nbsp;All present and future accounts, accounts receivable, royalties, and other
          rights to payment arising from, in connection with or relating to the
          Copyrights. </FONT></P>

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     <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;(e)&nbsp;All patents, patent applications and like protections including, without
          limitation, improvements, divisions, continuations, renewals, reissues,
          extensions and continuations-in-part of the same, including without limitation
          the patents and patent applications set forth on <U>Exhibit B</U> attached
          hereto (collectively, the &#147;Patents&#148;); </FONT></P>

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     <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;(f)&nbsp;All trademark and servicemark rights, whether registered or not, applications to
          register and registrations of the same and like protections, and the entire
          goodwill of the business of Borrower connected with and symbolized by such
          trademarks, including without limitation those set forth on <U>Exhibit C</U>
          attached hereto (collectively, the &#147;Trademarks&#148;); </FONT></P>

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     <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;(g)&nbsp;Any and all claims for damages by way of past, present and future infringements
          of any of the rights included above, with the right, but not the obligation, to
          sue for and collect such damages for said use or infringement of the rights
          identified above; </FONT></P>

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     <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;(h)&nbsp;All licenses or other rights to use any of the Copyrights, Patents or
          Trademarks, and all license fees and royalties arising from such use to the
          extent permitted by such license or rights; </FONT></P>

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     <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;(i)&nbsp;All amendments, extensions, renewals and extensions of any of the Copyrights,
          Trademarks or Patents; and </FONT></P>

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     <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;(j)&nbsp;All proceeds and products of the foregoing, including without limitation all
          payments under insurance or any indemnity or warranty payable in respect of any
          of the foregoing, and all license royalties and proceeds of infringement suits,
          and all rights corresponding to the foregoing throughout the world and all
          re-issues, divisions continuations, renewals, extensions and
          continuations-in-part of the foregoing. </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;&nbsp;&nbsp;&nbsp;
          <U>Loan Agreement.</U> This security interest is granted in conjunction with the
          security interest granted to Secured Party under the Loan Agreement. The rights
          and remedies of Secured Party with respect to the security interest granted
          hereby are in addition to those set forth in the Loan Agreement and the other
          Loan Documents, and those which are now or hereafter available to Secured Party
          as a matter of law or equity. Each right, power and remedy of Secured Party
          provided for herein or in the Loan Agreement or any of the other Loan Documents,
          or now or hereafter existing at law or in equity shall be cumulative and
          concurrent and shall be in addition to every right, power or remedy provided for
          herein and the exercise by Secured Party of any one or more of the rights,
          powers or remedies provided for in this Agreement, the Loan Agreement or any of
          the other Loan Documents, or now or hereafter existing at law or in equity,
          shall not preclude the simultaneous or later exercise by any person, including
          Secured Party, of any or all other rights, powers or remedies. </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;&nbsp;&nbsp;&nbsp;
          <U>Covenants and Warranties.</U> Borrower represents, warrants, covenants and
          agrees as follows: </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Subject to Section 8 (4) of the Schedule to the Loan Agreement, all of
          Borrower&#146;s present and future maskworks, software, computer programs and
          other works of authorship subject to (or capable of becoming subject to) United
          States copyright protection, the sale, licensing or other disposition of which
          results in royalties receivable, license fees receivable, accounts receivable or
          other sums owing to Borrower (collectively, &#147;Accounts&#148;), have been and
          shall be registered with the United States Copyright Office prior to the date
          Borrower requests or accepts any Loan from Secured Party with respect to such
          Accounts and prior to the date Borrower includes any such Accounts in any
          accounts receivable aging, borrowing base report or certificate or other similar
          report provided to Secured Party, and Borrower shall provide to Secured Party
          copies of all such registrations promptly upon the receipt of the same. </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Borrower shall undertake all reasonable measures to cause its employees, agents
          and independent contractors to assign to Borrower all rights of authorship to
          any copyrighted material in which Borrower has or may subsequently acquire any
          right or interest. </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;Borrower shall promptly advise Secured Party of any Trademark, Patent or
          Copyright not specified in this Agreement, which is hereafter acquired by
          Borrower. </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;Subject to Section 8 (4) of the Schedule to the Loan Agreement, Borrower shall
          promptly register the most recent version of any of Borrower&#146;s Copyrights,
          which are not already so registered, and which are referred to in Section 3(a)
          above or which are material to its business, and shall, from time to time,
          execute and file such other instruments, and take such further actions as
          Secured Party may reasonably request from time to time to perfect or continue
          the perfection of Secured Party&#146;s interest in the Collateral. </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.
          <U>General</U>. If any action relating to this Agreement is brought by either
          party hereto against the other party, the prevailing party shall be entitled to
          recover reasonable attorneys fees, costs and disbursements. This Agreement may
          be amended only by a written instrument signed by both parties hereto. To the
          extent that any provision of this Agreement conflicts with any provision of the
          Loan Agreement, the provision giving Secured Party greater rights or remedies
          shall govern, it being understood that the purpose of this Agreement is to add
          to, and not detract from, the rights granted to Secured Party under the Loan
          Agreement. This Agreement, the Loan Agreement, and the other Loan Documents
          comprise the entire agreement of the parties with respect to the matters
          addressed in this Agreement. This Agreement shall be governed by the laws of the
          State of California, without regard for choice of law provisions. Borrower and
          Secured Party consent to the nonexclusive jurisdiction of any state or federal
          court located in Santa Clara County, California. </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>5.</B>&nbsp;
          <B><U>WAIVER OF RIGHT TO JURY TRIAL</U>. SECURED PARTY AND BORROWER EACH HEREBY
          WAIVE THE RIGHT TO TRIAL BY JURY IN ANY ACTION OR PROCEEDING BASED UPON, ARISING
          OUT OF, OR IN ANY WAY RELATING TO: (I) THIS AGREEMENT; OR (II) ANY OTHER PRESENT
          OR FUTURE INSTRUMENT OR AGREEMENT BETWEEN SECURED PARTY AND BORROWER; OR (III)
          ANY CONDUCT, ACTS OR OMISSIONS OF SECURED PARTY OR BORROWER OR ANY OF THEIR
          DIRECTORS, OFFICERS, EMPLOYEES, AGENTS, ATTORNEYS OR ANY OTHER PERSONS
          AFFILIATED WITH SECURED PARTY OR BORROWER; IN EACH OF THE FOREGOING CASES,
          WHETHER SOUNDING IN CONTRACT OR TORT OR OTHERWISE.</B> </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IN
WITNESS WHEREOF, the parties have cause this Intellectual Property Security Agreement to
be duly executed by its officers thereunto duly authorized as of the first date written
above. </FONT></P>

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    <td width="50%" height="15"><font size="2" face="Times New Roman">Address of
    Grantor:</font></td>
    <td width="50%" height="15"><font size="2" face="Times New Roman">Grantor:
    </font></td>
  </tr>
  <tr>
    <td width="50%" height="30"><font size="2" face="Times New Roman">2201 South
    McDowell Blvd.<br>
Petaluma, CA  94954</font></td>
    <td width="50%" height="30"><FONT FACE="Times New Roman" SIZE=2><br>
    </FONT><font size="2" face="Times New Roman">TEGAL CORPORATION</font></td>
  </tr>
  <tr>
    <td width="50%" height="19">&nbsp;</td>
    <td width="50%" height="19">&nbsp;</td>
  </tr>
  <tr>
    <td width="50%" height="19"><font size="2">Executed 6/26/02</font></td>
    <td width="50%" height="19"><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;&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%" height="19">&nbsp;</td>
    <td width="50%" height="19"><font size="2">
    Title <u>Chairman, President &amp; CEO&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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%" height="19">&nbsp;</td>
    <td width="50%" height="19"><font size="2">Name: <u>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;&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%" height="19">&nbsp;</td>
    <td width="50%" height="19">&nbsp;</td>
  </tr>
  <tr>
    <td width="50%" height="15"><font size="2">Address of Secured Party:</font></td>
    <td width="50%" height="15"><font size="2">Secured Party: </font></td>
  </tr>
  <tr>
    <td width="50%" height="19">&nbsp;</td>
    <td width="50%" height="19">&nbsp;</td>
  </tr>
  <tr>
    <td width="50%" height="30"><font size="2">3003 Tasman Drive                                          <br>
    Santa Clara, California  95054</font></td>
    <td width="50%" valign="top" height="30"><font size="2">SILICON VALLEY BANK
    </font></td>
  </tr>
  <tr>
    <td width="50%" height="17"></td>
    <td width="50%" height="17"></td>
  </tr>
  <tr>
    <td width="50%" height="17"><font size="2">Executed 6/26/02</font></td>
    <td width="50%" height="17"><font size="2">
    By <u>/s/ Patrick J. O'Donnell&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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%" height="19">&nbsp;</td>
    <td width="50%" height="19"><font size="2">
    Title <u>Vice President&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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%" height="19">&nbsp;</td>
    <td width="50%" height="19">&nbsp;</td>
  </tr>
</table>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>EXHIBIT A-1</U> </FONT></P>

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<A NAME=A009></A>
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>REGISTERED COPYRIGHTS</U>
<br>
&nbsp;(including
copyrights that are the subject of an application for registration)</FONT></P>

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  <center>

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     <p align="left"><font size="2">Description </font></TH>
     <TH COLSPAN=2>
<font size="2">Registration/ <BR>
 Application  <BR>
   Number </font>
</TH>
     <TH COLSPAN=2>
<font size="2">Registration/<BR>
 Application <BR>
    Date </font>
</TH></TR>
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     <TD WIDTH=61% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>V4.02C (PT/20) 26-041-006 U1</FONT></TD>
     <TD WIDTH=2% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH=18% ALIGN=right><FONT FACE="Times New Roman, Times, Serif" SIZE=2>TX-4-222-674</FONT></TD>
     <TD WIDTH=2% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH=15% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH=2% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
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     <TD COLSPAN=6><HR NOSHADE COLOR=Black SIZE=1></TD></TR>
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     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>MCFTASK.SRC</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=right><FONT FACE="Times New Roman, Times, Serif" SIZE=2>TX-4-222-675</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN=6><HR NOSHADE COLOR=Black SIZE=1></TD></TR>
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     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>MCFTASK.SRC</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=right><FONT FACE="Times New Roman, Times, Serif" SIZE=2>TX-4-222-676</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
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     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>V4.02G (PT/9) 26-041-016 U1</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=right><FONT FACE="Times New Roman, Times, Serif" SIZE=2>TX-4-222-677</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN=6><HR NOSHADE COLOR=Black SIZE=1></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>RFTASK.SRC</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=right><FONT FACE="Times New Roman, Times, Serif" SIZE=2>TX-4-222-678</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
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     <TD COLSPAN=6><HR NOSHADE COLOR=Black SIZE=1></TD></TR>
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     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>MFCTASK.SRC</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=right><FONT FACE="Times New Roman, Times, Serif" SIZE=2>TX-4-222-679</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
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<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>901e plasma production etcher: system manual: vol. 1-2</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=right><FONT FACE="Times New Roman, Times, Serif" SIZE=2>TX-4-222-689</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN=6><HR NOSHADE COLOR=Black SIZE=1></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>T901e plasma production etcher: system manual: vol. 1-2</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=right><FONT FACE="Times New Roman, Times, Serif" SIZE=2>TX-4-222-690</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN=6><HR NOSHADE COLOR=Black SIZE=1></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>T903e plasma production etcher: system manual: vol. 1-2</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=right><FONT FACE="Times New Roman, Times, Serif" SIZE=2>TX-4-222-691</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN=6><HR NOSHADE COLOR=Black SIZE=1></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>903e plasma production etcher: system manual: vol. 1-2</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=right><FONT FACE="Times New Roman, Times, Serif" SIZE=2>TX-4-222-692</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN=6><HR NOSHADE COLOR=Black SIZE=1></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>9XX SECs user's manual</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=right><FONT FACE="Times New Roman, Times, Serif" SIZE=2>TX-5-340-216</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN=6><HR NOSHADE COLOR=Black SIZE=1></TD></TR>
</TABLE>

  </center>
</div>

<!-- MARKER PAGE="sheet: 6; page: 6" -->

<hr STYLE="page-break-after:always">

<!-- MARKER FORMAT-SHEET="Head Center Underline" FSL="Default" -->
<A NAME=A010></A>
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>EXHIBIT A-2</U> </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Center Underline" FSL="Default" -->
<A NAME=A011></A>
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>UNREGISTERED
COPYRIGHTS</U> </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Left" FSL="Default" -->
<A NAME=A012></A>
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>None. </FONT></P>

<!-- MARKER PAGE="sheet: 7; page: 7" -->

<hr STYLE="page-break-after:always">

<!-- MARKER FORMAT-SHEET="Head Left" FSL="Default" -->
<A NAME=A013></A>
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>September 25, 1996 </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Center Underline" FSL="Default" -->
<A NAME=A014></A>
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>EXHIBIT B</U> </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Center Underline" FSL="Default" -->
<A NAME=A015></A>
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>PATENTS</U> </FONT></P>

<div align="center">
  <center>

<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=600 style="border-collapse: collapse" bordercolor="#111111">
<TR VALIGN=Bottom>
     <TH>
     <p align="left"><font size="2">Description </font></TH>
     <TH>
<font size="2">Registration/ <BR>
 Application  <BR>
   Number </font>
</TH>
     <TH>
<font size="2">Registration/<BR>
 Application <BR>
    Date </font>
</TH></TR>
<TR>
     <TD COLSPAN=3><HR NOSHADE COLOR=Black SIZE=2></TD></TR>
</TABLE>

  </center>
</div>

<!-- MARKER FORMAT-SHEET="Head Left" FSL="Default" -->
<A NAME=A018></A>
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>See attached list. </FONT></P>

<!-- MARKER PAGE="sheet: 8; page: 8" -->

<hr STYLE="page-break-after:always">

<!-- MARKER FORMAT-SHEET="Head Minor Center" FSL="Default" -->
<A NAME=A019></A>
<P ALIGN=CENTER>&nbsp;</P>

<!-- MARKER FORMAT-SHEET="Head Center Underline" FSL="Default" -->
<A NAME=A020></A>
<P ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>EXHIBIT C</U> </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Center Underline" FSL="Default" -->
<A NAME=A021></A>
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>TRADEMARKS</U> </FONT></P>

<PRE>

<div align="center"><center><TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=600 style="border-collapse: collapse" bordercolor="#111111"><TR VALIGN=Bottom>
     <TH COLSPAN=2><font size="2">Description</font></TH>
     <TH COLSPAN=2>
<font size="2">Registration/ <BR>
 Application <BR>
    Number </font></TH>
     <TH COLSPAN=2>
<font size="2">Registration/ <BR>
 Application <BR>
    Date </font></TH></TR>
<TR>
     <TD COLSPAN=6><HR NOSHADE COLOR=Black SIZE=2></TD></TR>
<TR VALIGN=Bottom>
     <TD WIDTH=64% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Mark: TEGAL COMPLETE CUSTOMER SATISFACTION</FONT></TD>
     <TD WIDTH=2% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH=15% ALIGN=right><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1,493,986</FONT></TD>
     <TD WIDTH=2% ALIGN=right><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH=15% ALIGN=right><FONT FACE="Times New Roman, Times, Serif" SIZE=2>6/28/1988</FONT></TD>
     <TD WIDTH=2% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN=6><HR NOSHADE COLOR=Black SIZE=1></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Mark: TEGAL</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=right><FONT FACE="Times New Roman, Times, Serif" SIZE=2>--</FONT></TD><TD ALIGN=right><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=right><FONT FACE="Times New Roman, Times, Serif" SIZE=2>--</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN=6><HR NOSHADE COLOR=Black SIZE=1></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Mark: TEGAL</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=right><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1,494,896</FONT></TD><TD ALIGN=right><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=right><FONT FACE="Times New Roman, Times, Serif" SIZE=2>7/5/1988</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN=6><HR NOSHADE COLOR=Black SIZE=1></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Mark: <br>TEGAL AND AN UPWARD ARROW CONTAINED IN AN UNENCLOSED BOX</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=right><FONT FACE="Times New Roman, Times, Serif" SIZE=2>858993</FONT></TD><TD ALIGN=right><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=right><FONT FACE="Times New Roman, Times, Serif" SIZE=2>6/23/1998</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN=6><HR NOSHADE COLOR=Black SIZE=1></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Mark: <br>TEGAL AND AN UPWARD ARROW CONTAINED IN AN UNENCLOSED BOX</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=right><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2,495,626</FONT></TD><TD ALIGN=right><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=right><FONT FACE="Times New Roman, Times, Serif" SIZE=2>10/9/2001</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN=6><HR NOSHADE COLOR=Black SIZE=1></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Mark: 903G</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=right><FONT FACE="Times New Roman, Times, Serif" SIZE=2>76/201,864</FONT></TD><TD ALIGN=right><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=right><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1/30/2001</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN=6><HR NOSHADE COLOR=Black SIZE=1></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Mark: 901G</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=right><FONT FACE="Times New Roman, Times, Serif" SIZE=2>76/201,857</FONT></TD><TD ALIGN=right><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=right><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1/30/2001</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN=6><HR NOSHADE COLOR=Black SIZE=1></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Mark: i901</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=right><FONT FACE="Times New Roman, Times, Serif" SIZE=2>76/201,866</FONT></TD><TD ALIGN=right><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=right><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1/30/2001</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN=6><HR NOSHADE COLOR=Black SIZE=1></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Mark: i903</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=right><FONT FACE="Times New Roman, Times, Serif" SIZE=2>76/201,861</FONT></TD><TD ALIGN=right><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=right><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1/30/2001</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN=6><HR NOSHADE COLOR=Black SIZE=1></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Mark: 980</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=right><FONT FACE="Times New Roman, Times, Serif" SIZE=2>76/201,858</FONT></TD><TD ALIGN=right><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=right><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1/30/2001</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN=6><HR NOSHADE COLOR=Black SIZE=1></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Mark: 981</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=right><FONT FACE="Times New Roman, Times, Serif" SIZE=2>76/201,854</FONT></TD><TD ALIGN=right><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=right><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1/30/2001</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN=6><HR NOSHADE COLOR=Black SIZE=1></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Mark: 983</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=right><FONT FACE="Times New Roman, Times, Serif" SIZE=2>76/201,862</FONT></TD><TD ALIGN=right><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=right><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1/30/2001</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN=6><HR NOSHADE COLOR=Black SIZE=1></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Mark: SPECTRA</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=right><FONT FACE="Times New Roman, Times, Serif" SIZE=2>--</FONT></TD><TD ALIGN=right><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=right><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1/15/2002</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN=6><HR NOSHADE COLOR=Black SIZE=1></TD></TR>
<TR>
     <TD COLSPAN=6><HR NOSHADE COLOR=Black SIZE=1></TD></TR>
</TABLE>

</center></div></PRE>THIS WARRANT AND THE SHARES ISSUABLE
HEREUNDER HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED OR ANY
APPLICABLE STATE SECURITIES LAW, AND MAY NOT BE SOLD, PLEDGED, OR OTHERWISE TRANSFERRED
WITHOUT AN EFFECTIVE REGISTRATION THEREOF UNDER SUCH ACT OR PURSUANT TO RULE 144 AND AN
EXEMPTION UNDER APPLICABLE STATE LAW OR AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO
THE CORPORATION AND ITS COUNSEL, THAT SUCH REGISTRATION IS NOT REQUIRED. 

WARRANT TO PURCHASE
STOCK 

	Corporation:	Tegal
Corporation 
	Number of Shares:	An amount equal to $250,000 divided by the Initial Exercise Price
	Class of Stock:	Common Stock
	Initial Exercise Price: 
    	The  greater  of (i) $2.00 per  share or (ii) a price  per  share  equal to the  average
    
closing
price per share of the Company’s common stock for the seven trading days immediately
preceding the Issue Date. 
	Issue Date:	June 26, 2002
	Expiration Date:	June 25, 2009

    

        THIS
WARRANT CERTIFIES THAT, for the agreed upon value of $1.00 and for other good and valuable
consideration, SILICON VALLEY BANK (“Holder”) is entitled to purchase the number
of fully paid and nonassessable shares of the class of securities (the “Shares”)
of the corporation (the “Company”) at the initial exercise price per Share (the
“Warrant Price”) all as set forth above and as adjusted pursuant to
Article 2 of this Warrant, subject to the provisions and upon the terms and
conditions set forth in this Warrant. 

ARTICLE 1. EXERCISE. 

        1.1
Method of Exercise. Holder may exercise this Warrant by delivering a duly executed
Notice of Exercise in substantially the form attached as Appendix 1 to the principal
office of the Company set forth in Section 5.5 of this Warrant. Unless Holder is
exercising the conversion right set forth in Section 1.2, Holder shall also deliver to the
Company a check for the aggregate Warrant Price for the Shares being purchased. 

        1.2
Conversion Right. In lieu of exercising this Warrant as specified in Section 1.1,
Holder may from time to time convert this Warrant, in whole or in part, into a number of
Shares determined by dividing (a) the aggregate fair market value of the Shares or other
securities otherwise issuable upon exercise of this Warrant minus the aggregate Warrant
Price of such Shares by (b) the fair market value of one Share. The fair market value of
the Shares shall be determined pursuant to Section 1.3. 

        1.3
Fair Market Value. If the Shares are traded in a public market, the fair market
value of the Shares shall be the closing price of the Shares (or the closing price of the
Company’s stock into which the Shares are convertible) reported for the business day
immediately before Holder delivers its Notice of Exercise to the Company. If the Shares
are not traded in a public market, the Board of Directors of the Company shall determine
fair market value in its reasonable good faith judgment. 

        1.4
Delivery of Certificate and New Warrant. Promptly after Holder exercises or
converts this Warrant, the Company shall deliver to Holder certificates for the Shares
acquired and, if this Warrant has not been fully exercised or converted and has not
expired, a new Warrant representing the Shares not so acquired. 

        1.5
Replacement of Warrants. On receipt of evidence reasonably satisfactory to the
Company of the loss, theft, destruction or mutilation of this Warrant and, in the case of
loss, theft or destruction, on delivery of an indemnity agreement reasonably satisfactory
in form and amount to the Company or, in the case of mutilation, or surrender and
cancellation of this Warrant, the Company shall execute and deliver, in lieu of this
Warrant, a new warrant of like tenor. 

        1.6
Assumption on Sale, Merger, or Consolidation of the Company. 
                1.6.1    "Acquisition".  For the purpose of this Warrant,  "Acquisition" means any sale,

license, or other disposition of all
or substantially all of the assets of the Company, or any reorganization, consolidation,
or merger of the Company where the holders of the Company’s securities before the
transaction beneficially own less than 50% of the outstanding voting securities of the
surviving entity after the transaction. 

                1.6.2
Assumption  of Warrant.  Upon the  closing of any  Acquisition,  the  successor

entity shall assume the obligations
of this Warrant, and this Warrant shall be exercisable for the same securities, cash, and
property as would be payable for the Shares issuable upon exercise of the unexercised
portion of this Warrant as if such Shares were outstanding on the record date for the
Acquisition and subsequent closing. The Initial Exercise Price and/or number of Shares
shall be adjusted accordingly. 

ARTICLE 2. ADJUSTMENTS TO THE
SHARES. 

        2.1
Stock Dividends, Splits, Etc. If the Company declares or pays a dividend on its
common stock (or the Shares if the Shares are securities other than common stock) payable
in common stock, or other securities, subdivides the outstanding common stock into a
greater amount of common stock, or, if the Shares are securities other than common stock,
subdivides the Shares in a transaction that increases the amount of common stock into
which the Shares are convertible, then upon exercise of this Warrant, for each Share
acquired, Holder shall receive, without cost to Holder, the total number and kind of
securities to which Holder would have been entitled had Holder owned the Shares of record
as of the date the dividend or subdivision occurred. If the outstanding shares are
combined or consolidated, by reclassification or otherwise, into a lesser number of
shares, the Initial Exercise Price shall be proportionately increased. 

        2.2
Reclassification, Exchange, Combinations or Substitution. Upon any
reclassification, exchange, substitution, or other event that results in a change of the
number and/or class of the securities issuable upon exercise or conversion of this
Warrant, Holder shall be entitled to receive, upon exercise or conversion of this Warrant,
the number and kind of securities and property that Holder would have received for the
Shares if this Warrant had been exercised immediately before such reclassification,
exchange, substitution, or other event. Such an event shall include any automatic
conversion of the outstanding or issuable securities of the Company of the same class or
series as the Shares to common stock pursuant to the terms of the Company’s Articles
of Incorporation upon the closing of a registered public offering of the Company’s
common stock. The Company or its successor shall promptly issue to Holder a new Warrant
for such new securities or other property. The new Warrant shall provide for adjustments
which shall be as nearly equivalent as may be practicable to the adjustments provided for
in this Article 2 including, without limitation, adjustments to the Initial Exercise Price
and to the number of securities or property issuable upon exercise of the new Warrant. The
provisions of this Section 2.2 shall similarly apply to successive reclassifications,
exchanges, substitutions, or other events. 

	          2.3
Adjustments for Diluting Issuances. The Warrant Price and the number of Shares
issuable upon exercise of this Warrant or, if the Shares are Preferred Stock, the number
of shares of common stock issuable upon conversion of the Shares, shall be subject to
adjustment, from time to time in the manner set forth in the Company’s Certificate of
Incorporation. The provisions set forth for the Shares in the Company’s Certificate
of Incorporation relating to the above in effect as of the Issue Date may not be amended,
modified or waived, without the prior written consent of Holder unless such amendment,
modification or waiver affects Holder in the same manner as they affect all other
shareholders of the same series of shares granted to Holder. 

        2.4
No Impairment. The Company shall not, by amendment of its Articles of Incorporation
or through a reorganization, transfer of assets, consolidation, merger, dissolution,
issue, or sale of securities or any other voluntary action, avoid or seek to avoid the
observance or performance of any of the terms to be observed or performed under this
Warrant by the Company, but shall at all times in good faith assist in carrying out of all
the provisions of this Article 2 and in taking all such action as may be necessary or
appropriate to protect Holder’s rights under this Article against impairment. 

        2.5
Fractional Shares. No fractional Shares shall be issuable upon exercise or
conversion of the Warrant and the number of Shares to be issued shall be rounded down to
the nearest whole Share. If a fractional share interest arises upon any exercise or
conversion of the Warrant, the Company shall eliminate such fractional share interest by
paying Holder the amount computed by multiplying the fractional interest by the fair
market value of a full Share. 

        2.6
Certificate as to Adjustments. Upon each adjustment of the Warrant Price, the
Company shall promptly notify Holder in writing, and, at the Company’s expense,
promptly compute such adjustment, and furnish Holder with an officer’s certificate
setting forth such adjustment and the facts upon which such adjustment is based. The
Company shall, upon written request, furnish Holder a certificate setting forth the
Warrant Price in effect upon the date thereof and the series of adjustments leading to
such Warrant Price. 

ARTICLE 3. 
REPRESENTATIONS AND COVENANTS OF THE COMPANY. 

                          3.1      Representations  and  Warranties.  The Company  represents and warrants to the Holder as

follows: 

                 (a) The initial Warrant Price referenced on the first page of this Warrant is not
          greater than (i) the price per share at which the Shares were last issued in an
          arms-length transaction in which at least $500,000 of the Shares were sold and
          (ii) the fair market value of the Shares as of the date of this Warrant. 

                 (b) All Shares which may be issued upon the exercise of the purchase right
          represented by this Warrant, and all securities, if any, issuable upon
          conversion of the Shares, shall, upon issuance, be duly authorized, validly
          issued, fully paid and nonassessable, and free of any liens and encumbrances
          except for restrictions on transfer provided for herein or under applicable
          federal and state securities laws. 

                 (c) The capitalization table previously provided to Holder remains true and complete
          as of the Issue Date. 

        3.2
Notice of Certain Events. If the Company proposes at any time (a) to
declare any dividend or distribution upon its common stock, whether in cash,
property, stock, or other securities and whether or not a regular cash dividend;
(b) to offer for subscription pro rata to the holders of any class or series of
its stock any additional shares of stock of any class or series or other rights;
(c) to effect any reclassification or recapitalization of common stock; (d) to
merge or consolidate with or into any other corporation, or sell, lease,
license, or convey all or substantially all of its assets, or to liquidate,
dissolve or wind up; or (e) offer holders of registration rights the opportunity
to participate in an underwritten public offering of the Company’s securities 

for cash, then, in
connection with each such event, the Company shall give Holder (1) at least 10
days prior written notice of the date on which a record will be taken for such
dividend, distribution, or subscription rights (and specifying the date on which
the holders of common stock will be entitled thereto) or for determining rights
to vote, if any, in respect of the matters referred to in (c) and (d) above; (2)
in the case of the matters referred to in (c) and (d) above at least 10 days
prior written notice of the date when the same will take place (and specifying
the date on which the holders of common stock will be entitled to exchange their
common stock for securities or other property deliverable upon the occurrence of
such event); and (3) in the case of the matter referred to in (e) above, the
same notice as is given to the holders of such registration rights. 

        3.3
Registration Under Securities Act of 1933, as amended. The Company agrees that the
Shares shall be entitled to the registration rights set forth in the Company’s Unit
Purchase Agreement dated December 31, 2001. The provisions set forth in the Company’s
Unit Purchase Agreement relating to the above in effect as of the Issue Date may not be
amended, modified or waived without the prior written consent of Holder unless such
amendment, modification or waiver affects Holder in the same manner as they affect all
other shareholders of the same series of shares granted to the Holder . 

ARTICLE 4.  REPRESENTATIONS,  WARRANTIES  OF THE  HOLDER.  The Holder  represents  and  warrants  to the Company as
follows:

        4.1
Purchase for Own Account. Except for transfers to Holder’s affiliates, this
Warrant and the securities to be acquired upon exercise of this Warrant by the Holder will
be acquired for investment for the Holder’s account, not as a nominee or agent, and
not with a view to the public resale or distribution within the meaning of the 1933 Act,
and the Holder has no present intention of selling, granting any participation in, or
otherwise distributing the same. If not an individual, the Holder also represents that the
Holder has not been formed for the specific purpose of acquiring this Warrant or the
Shares. 

        4.2
Disclosure of Information. The Holder has received or has had full access to all
the information it considers necessary or appropriate to make an informed investment
decision with respect to the acquisition of this Warrant and its underlying securities.
The Holder further has had an opportunity to ask questions and receive answers from the
Company regarding the terms and conditions of the offering of this Warrant and its
underlying securities and to obtain additional information (to the extent the Company
possessed such information or could acquire it without unreasonable effort or expense)
necessary to verify any information furnished to the Holder or to which the Holder has
access. 

        4.3
Investment Experience. The Holder understands that the purchase of this Warrant and
its underlying securities involves substantial risk. The Holder: (i) has experience as an
investor in securities of companies in the development stage and acknowledges that the
Holder is able to fend for itself, can bear the economic risk of such Holder’s
investment in this Warrant and its underlying securities and has such knowledge and
experience in financial or business matters that the Holder is capable of evaluating the
merits and risks of its investment in this Warrant and its underlying securities and/or
(ii) has a preexisting personal or business relationship with the Company and certain of
its officers, directors or controlling persons of a nature and duration that enables the
Holder to be aware of the character, business acumen and financial circumstances of such
persons. 

        4.4
Accredited  Investor  Status.  The Holder is an "accredited  investor"  within the meaning of Regulation D
promulgated under the 1933 Act.

ARTICLE 5. MISCELLANEOUS. 

                          5.1
Term: This Warrant is exercisable in whole or in part at any time and
from time to time on or before the Expiration Date. 

        5.2
Legends. This Warrant and the Shares shall be imprinted with a legend in
substantially the following form:

	  	
THIS
SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED OR UNDER ANY
APPLICABLE STATE LAWS, AND MAY NOT BE SOLD, PLEDGED OR OTHERWISE TRANSFERRED WITHOUT AN
EFFECTIVE REGISTRATION THERE OF UNDER SUCH ACT AND AN EXEMPTION UNDER APPLICABLE STATE LAW
OR PURSUANT TO RULE 144 OR AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE
CORPORATION AND ITS COUNSEL THAT SUCH REGISTRATION IS NOT REQUIRED. 

        5.3
Compliance with Securities Laws on Transfer. This Warrant and the Shares issuable
upon exercise of this Warrant may not be transferred or assigned in whole or in part
without compliance with applicable federal and state securities laws by the transferor and
the transferee (including, without limitation, the delivery of investment representation
letters and legal opinions reasonably satisfactory to the Company, as reasonably requested
by the Company). The Company shall not require Holder to provide an opinion of counsel if
the transfer is to an affiliate of Holder or if there is no material question as to the
availability of current information as referenced in Rule 144(c), Holder represents that
it has complied with Rule 144(d) and (e) in reasonable detail, the selling broker
represents that it has complied with Rule 144(f), and the Company is provided with a copy
of Holder’s notice of proposed sale. 

        5.4
Transfer Procedure. Subject to the provisions of Section 5.3, upon receipt by
Holder of the executed Warrant, Holder will transfer all or part of this Warrant or the
Shares issuable upon exercise of this Warrant (or the securities issuable, directly or
indirectly, upon conversion of the Shares, if any) to Silicon Valley Bancshares,
Holder’s parent company. Subject to the provisions of Section 5.3, Holder or Silicon
Valley Bancshares (if applicable) may transfer all or part of this Warrant or the Shares
issuable upon exercise of this Warrant (or the securities issuable, directly or
indirectly, upon conversion of the Shares, if any) to The Silicon Valley Bank Foundation,
or to any affiliate of Holder, or to any other transferee, by giving the Company notice of
the portion of the Warrant being transferred with the name, address and taxpayer
identification number of the transferee and surrendering this Warrant to the Company for
reissuance to the transferee(s) (and Holder if applicable). The Company may refuse to
transfer this Warrant to any person who directly competes with the Company unless the
Company’s stock is publicly traded. 

        5.5
Notices. All notices and other communications from the Company to the Holder, or
vice versa, shall be deemed delivered and effective when given personally or mailed by
first-class registered or certified mail, postage prepaid, at such address as may have
been furnished to the Company or the Holder, as the case may be, in writing by the Company
or such holder from time to time. All notices to the Holder shall be addressed as follows: 

                           
                Silicon Valley Bank
                           

                Attn:  Treasury Department
                           

                3003 Tasman Drive, HG 110
                           

                Santa Clara, CA 95054

All notices to the Company shall be
addressed as follows: 

                           
                Tegal Corporation
                           

                Attn:  Kathy Petrini

                2201 South McDowell Blvd.
                           

                Petaluma, CA 94954

        5.6
Waiver. This Warrant and any term hereof may be changed, waived, discharged or
terminated only by an instrument in writing signed by the party against which enforcement
of such change, waiver, discharge or termination is sought. 

        5.7 Attorney’s Fees. In
the event of any dispute between the parties concerning the terms and provisions of this
Warrant, the party prevailing in such dispute shall be entitled to collect from the other
party all costs incurred in such dispute, including reasonable attorney’s fees. 

        5.8
Automatic Conversion upon Expiration. In the event that, upon the Expiration Date,
the fair market value of one Share (or other security issuable upon the exercise hereof)
as determined in accordance with Section 1.3 above is greater than the Exercise Price in
effect on such date, then this Warrant shall automatically be deemed on and as of such
date to be converted pursuant to Section 1.2 above as to all Shares (or such other
securities) for which it shall not previously have been exercised or converted, and the
Company shall promptly deliver a certificate representing the Shares (or such other
securities) issued upon such conversion to the Holder. 

        5.9
Governing Law. This Warrant shall be governed by and construed in accordance with
the laws of the State of California, without giving effect to its principles regarding
conflicts of law. 

                                                              	 	
                                                                  "COMPANY"
                                                                  

                                                                  Tegal
                                                                  Corporation
                                                                  
	 	 
	 	
                                                                  By:
                                                                  /s/   Michael L. Parodi                               
                                                                  
                                                                  
	 	
                                                                  Name:  Michael L. Parodi
                                                                  
	 	
                                                                  
                                                                  Title:
                                                                  Chairman of
                                                                  the Board, 

                                                                            President
                                                                  or Vice
                                                                  President
                                                                  
	 	 
	 	
                                                                  By:
                                                                  /s/   Kathy
                                                                  Petrini                                       
                                                                  
                                                                  
	 	
                                                                  Name:
                                                                  Kathy Petrini
	 	
                                                                  
                                                                  Title: Chief
                                                                  Financial
                                                                  Officer,
                                                                  Secretary, 

                                                                             Assistant
                                                                  Treasurer or
                                                                  Assistant
                                                                  Secretary
	 	 
	 	
                                                                  
                                                                  "HOLDER"
	 	 
	 	
                                                                  By:
                                                                  /s/
                                                                  Patrick J.
                                                                  O'Donnell                               
                                                                  
                                                                  
	 	
                                                                  Name:
                                                                  Patrick J.
                                                                  O'Donnell
	 	
                                                                  
                                                                  Title: Vice
                                                                  President

Dated: June 26, 2002 

APPENDIX 1 

NOTICE OF EXERCISE 

         1. Holder elects to purchase ___________ shares of the Common/Series ______
          Preferred [strike one] Stock of _____________________ pursuant to the terms of
          the attached Warrant, and tenders payment of the purchase price of the shares in
          full. 

         1. Holder elects to convert the attached Warrant into Shares/cash [strike one] in
          the manner specified in the Warrant. This conversion is exercised for
          _____________________ of the Shares covered by the Warrant. 

        [Strike
paragraph that does not apply.] 

         2. Please issue a certificate or certificates representing the shares in the name
          specified below: 

                                                                ___________________________________________________

                                                                Holders Name

 

                                                                ___________________________________________________

 

                                                                ___________________________________________________

                                                                (Address)

      

         3. The undersigned represents it is acquiring the shares solely for its own account
          and not as a nominee for any other party and not with a view toward the resale
          or distribution except in compliance with applicable securities laws. 

                                                              HOLDER:

_______________________________

                                                              By:_______________________________

                                                              

Name:_____________________________

Title:______________________________

_________________ 

      (Date)

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