Document:

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                                                                      EXECUTION
                                                                     COUNTERPART

                            LEASE AMENDMENT NO. 2

        THIS LEASE AMENDMENT NO. 2 (the "AMENDMENT") is made and entered as of
June 1, 2000, by and between COLLINS CROSSING, LTD., a Texas limited
partnership ("LANDLORD"), and INET TECHNOLOGIES, INC., a Delaware corporation
("TENANT").  All terms used herein and not otherwise defined shall have the
meanings ascribed to them in the hereinafter defined Lease.

                              W I T N E S S E T H:

        WHEREAS, Landlord and Tenant entered into that certain Lease dated
January 27, 2000, said Lease covering certain premises described as Suite Nos.
100, 200, 800, 900, 1000, and 1100 and containing 162,402 rentable square feet
(the "INITIAL PREMISES"), located in the office building on the land
containing approximately 5.3394 acres located in Richardson, Dallas County,
Texas, and whose street address is 1500 N. Greenville Avenue, Richardson,
Dallas County, Texas (the "BUILDING"); and

        WHEREAS, Landlord and Tenant amended the Lease by Lease Amendment No.
1 dated as of March31, 2000 (the "FIRST AMENDMENT"), pursuant to which
Landlord leased to Tenant, and Tenant leased from Landlord, Suite No. 700 in
the Building containing 27,697 rentable square feet (the "SEVENTH FLOOR
PREMISES" and, together with the Initial Premises, the "EXISTING PREMISES") as
contemplated by EXHIBIT H (Must-Take Expansion Obligation) of the Lease (the
Lease, as amended by the First Amendment, is herein called the "LEASE"); and

        WHEREAS, by letter dated April 5, 2000, Landlord delivered a notice to
Tenant (the "REFUSAL NOTICE") that (1) Landlord had received an offer to lease
the fourth and fifth floors of the Building which Landlord desired to accept,
and (2) afforded Tenant ten (10) business days within which to elect to lease
the fourth and fifth floors of the Building on the terms set forth in the
Refusal Notice; and

        WHEREAS, by letter dated April 14, 2000, Tenant delivered a notice to
Landlord (the "EXPANSION NOTICE") of Tenant's election to exercise the First
First-Year Expansion Option and the Second First-Year Expansion Option with
respect to the sixth and fifth floors of the Building; and

        WHEREAS, certain disputes and controversies have arisen between
Landlord and Tenant with respect to the validity and effectiveness of the
Refusal Notice and the Expansion Notice and with respect to the respective
rights and obligations of Landlord and Tenant as to the third, fourth, fifth,
and sixth floors in the Building (collectively called the "DISPUTES"); and

        WHEREAS, in order to settle and compromise the Disputes without any
admission of liability by either party, Landlord and Tenant have executed
simultaneously with this Amendment a Compromise and Settlement Agreement dated
of even date herewith (the "SETTLEMENT AGREEMENT"), which Settlement Agreement
provides for, among other things, the execution and delivery of this
Amendment; and

        WHEREAS, Landlord and Tenant have determined the rentable square feet
of the Existing Premises is incorrectly stated in the Lease and desire to
correct such rentable square footage;

        NOW, THEREFORE, for and in consideration of the foregoing recitals,
the covenants, terms, conditions, payments, releases, mutual promises and
agreements set forth herein and in the Settlement Agreement, Ten and No/100
Dollars ($10.00) in hand paid, and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, Landlord and Tenant
hereby agree as follows:

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        1.      EXISTING PREMISES.  Landlord and Tenant hereby stipulate and
agree that, notwithstanding anything set forth in the Lease to the contrary,
(a) the Existing Premises contain 184,272 rentable square feet, and (b)
Tenant's Proportionate Share is 61.2513%, which is the percentage obtained by
dividing (i) the 184,272 rentable square feet in the Premises by (ii) the
300,846 rentable square feet in the Building.

        2.      SIXTH FLOOR PREMISES.  Landlord hereby leases to Tenant, and
Tenant hereby leases from Landlord, Suite No. 600 in the Building containing
28,550 rentable square feet (the "SIXTH FLOOR PREMISES") on the terms and
conditions of the Lease, as modified hereby.  From and after the Sixth Floor
Commencement Date (as hereinafter defined) and until the Third Floor
Commencement Date (as hereinafter defined), (a) the term "PREMISES", as used
in the Lease, shall refer collectively to the Existing Premises and the Sixth
Floor Premises, except as herein otherwise provided, and (b) Tenant's
Proportionate Share shall be increased to 70.7412%, which is the percentage
obtained by dividing the rentable square feet in the Premises (212,822) by the
number of rentable square feet in the Building (300,846).

        3.      SIXTH FLOOR TERM; ACCEPTANCE. The Term for the Sixth Floor
Premises shall commence on October 1, 2000 (the "SIXTH FLOOR COMMENCEMENT
DATE") and shall be coterminous with the Term for the Existing Premises (the
"SIXTH FLOOR PREMISES TERM"). If the Completion Date as to the Sixth Floor
Premises has not occurred by October 1, 2000 due to Landlord's Delays, then
(a) Tenant's obligation to pay Rent as to the Sixth Floor Premises shall be
waived for the number of days that the Completion Date as to the Sixth Floor
Premises is delayed beyond October 1, 2000 due to Landlord's Delays, (b)
Landlord shall not be in default hereunder or be liable for damages therefor,
and (c) Tenant shall accept possession of the Sixth Floor Premises when
Landlord tenders possession thereof to Tenant.  By occupying the Sixth Floor
Premises, Tenant shall be deemed to have accepted the Sixth Floor Premises in
their condition as of the date of such occupancy, subject to the performance
of punch-list items that remain to be performed by Landlord, if any.  Tenant
shall execute and deliver to Landlord, within ten (10) days after Landlord has
requested same, a letter confirming (i) the Sixth Floor Commencement Date,
(ii) that Tenant has accepted the Sixth Floor Premises, and (iii) that
Landlord has performed all of its obligations with respect to the Sixth Floor
Premises (except for punch-list items specified in such letter).

        4.      SIXTH FLOOR BASIC RENTAL; EXPENSE STOP. The annual Basic
Rental for the Sixth Floor Premises shall be as follows:

  10/01/00 - 06/30/05: an annual Basic Rental of $24.00 per rentable square foot
  07/01/05 - 06/30/10: an annual Basic Rental of $26.00 per rentable square foot

In addition, Tenant shall pay its Proportionate Share of Electrical Costs and
its share of Excess with respect to the Sixth Floor Premises. The Expense Stop
for the Sixth Floor Premises shall be 2000 base year.

        5.      SIXTH FLOOR TENANT FINISH WORK; CONSTRUCTION ALLOWANCE. The
work for the Sixth Floor Premises (the "SIXTH FLOOR PREMISES WORK") shall be
designed, constructed and performed in accordance with procedures and
requirements set forth in EXHIBIT D (Tenant Finish-Work: Allowance) of the
Lease, except that for purposes of the Sixth Floor Work: (a) the references in
EXHIBIT D to the "Premises" shall refer solely to the Sixth Floor Premises,
(b) the references in EXHIBIT D to the "Work" shall refer solely to the Sixth
Floor Premises Work, (c) Tenant shall deliver to Landlord for its approval
final working drawings for the Sixth Floor Premises Work on or before June 15,
2000, and such working drawings, when approved by Landlord in accordance with
EXHIBIT D, shall be the "Working Drawings" referred to in EXHIBIT D, (d)
Paragraphs 2 and 9 of EXHIBIT D shall be wholly inapplicable to the Sixth
Floor Premises Work, and (e) Landlord shall provide to Tenant a construction
allowance for the Sixth Floor Premises Work in an amount equal to the lesser
of (i) $20.00 per rentable square foot in the Sixth Floor Premises, or (ii)
the Total

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Construction Costs for the Sixth Floor Premises Work (and all references in
EXHIBIT D to the "Construction Allowance" shall refer solely to such amount).
In no event shall Landlord be obligated to advance or loan any additional
allowance or tenant finish dollars to Tenant in respect of the Sixth Floor
Premises.

        6.      THIRD FLOOR PREMISES.  Landlord hereby leases to Tenant, and
Tenant hereby leases from Landlord, Suite No. 300 in the Building containing
28,550 rentable square feet (the "THIRD FLOOR PREMISES") on the terms and
conditions of the Lease, as modified hereby.  From and after the Third Floor
Commencement Date and throughout the remainder of the Term, (a) the term
"PREMISES", as used in the Lease, shall refer collectively to the Existing
Premises, the Sixth Floor Premises, and the Third Floor Premises, except as
herein otherwise provided, and (b) Tenant's Proportionate Share shall be
increased to 80.2311%, which is the percentage obtained by dividing the
rentable square feet in the Premises (241,372) by the number of rentable
square feet in the Building (300,846).

        7.      THIRD FLOOR TERM; ACCEPTANCE. The Term for the Third Floor
Premises shall commence on April 1, 2001 (the "THIRD FLOOR COMMENCEMENT DATE")
and shall be coterminous with the Term for the Existing Premises (the "THIRD
FLOOR PREMISES TERM"). If the Completion Date as to the Third Floor Premises
has not occurred by April 1, 2001 due to Landlord's Delays, then (a) Tenant's
obligation to pay Rent as to the Third Floor Premises shall be waived for the
number of days that the Completion Date as to the Third Floor Premises is
delayed beyond April 1, 2001 due to Landlord's Delays, (b) Landlord shall not
be in default hereunder or be liable for damages therefor, and (c) Tenant
shall accept possession of the Third Floor Premises when Landlord tenders
possession thereof to Tenant.  By occupying the Third Floor Premises, Tenant
shall be deemed to have accepted the Third Floor Premises in their condition
as of the date of such occupancy, subject to the performance of punch-list
items that remain to be performed by Landlord, if any.  Tenant shall execute
and deliver to Landlord, within ten (10) days after Landlord has requested
same, a letter confirming (1) the Third Floor Commencement Date, (2) that
Tenant has accepted the Third Floor Premises, and (3) that Landlord has
performed all of its obligations with respect to the Third Floor Premises
(except for punch-list items specified in such letter).  Notwithstanding the
foregoing, if Tenant desires to schedule the Third Floor Commencement Date to
occur prior to April 1, 2001, Tenant shall give written notice to Landlord
specifying such earlier scheduled Third Floor Commencement Date (which date
shall be not sooner than twenty (20) weeks after the date of such written
notice, unless Landlord shall agree otherwise), and such specified date shall
be substituted for April 1, 2001 in each instance in which it appears in the
preceding sentences of this paragraph 7 and in the provisions of paragraph 8.

        8.      THIRD FLOOR BASIC RENTAL; EXPENSE STOP. The annual Basic
Rental for the Third Floor Premises shall be as follows:

  04/01/01 - 06/30/05: an annual Basic Rental of $22.00 per rentable square foot
  07/01/05 - 06/30/10: an annual Basic Rental of $24.00 per rentable square foot

In addition, Tenant shall pay its Proportionate Share of Electrical Costs and
its share of Excess with respect to the Third Floor Premises. The Expense Stop
for the Third Floor Premises shall be 2000 base year.

        9.      THIRD FLOOR TENANT FINISH WORK; CONSTRUCTION ALLOWANCE. The
work for the Third Floor Premises (the "THIRD FLOOR PREMISES WORK") shall be
designed, constructed and performed in accordance with procedures and
requirements set forth in EXHIBIT D (Tenant Finish-Work: Allowance) of the
Lease, except that for purposes of the Third Floor Work: (a) the references in
EXHIBIT D to the "Premises" shall refer solely to the Third Floor Premises,
(b) the references in EXHIBIT D to the "Work" shall refer solely to the Third
Floor Premises Work, (c) Tenant shall deliver to Landlord for its approval
final working drawings for the Third Floor Premises Work on or before July 15,
2000, and such working drawings, when approved by

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Landlord in accordance with EXHIBIT D, shall be the "Working Drawings"
referred to in EXHIBIT D, (d) Paragraphs 2 and 9 of EXHIBIT D shall be wholly
inapplicable to the Third Floor Premises Work, and (e) Landlord shall provide
to Tenant a construction allowance for the Third Floor Premises Work in an
amount equal to the lesser of (i) $25.00 per rentable square foot in the Third
Floor Premises, or (ii) the Total Construction Costs for the Third Floor
Premises Work (and all references in EXHIBIT D to the "Construction Allowance"
shall refer solely to such amount). In no event shall Landlord be obligated to
advance or loan any additional allowance or tenant finish dollars to Tenant in
respect of the Third Floor Premises.

        10.     PAYMENT OF CONSTRUCTION ALLOWANCE.  Although Landlord and
Tenant currently expect that Landlord or its affiliate will manage the
performance of the Third Floor Premises Work and the Sixth Floor Premises
Work, if Tenant or its agent is managing the performance of such work, then
Tenant shall not become entitled to full credit for the applicable
Construction Allowance until the Third Floor Premises Work or the Sixth Floor
Premises Work (as the case may be) has been substantially completed and Tenant
has caused to be delivered to Landlord (a) all invoices from contractors,
subcontractors, and suppliers evidencing the cost of performing the Third
Floor Premises Work or the Sixth Floor Premises Work (as the case may be),
together with lien waivers from such parties, and a consent of the surety to
the finished Third Floor Premises Work or the Sixth Floor Premises Work, as
the case may be (if applicable), and (b) a certificate of occupancy from the
appropriate governmental authority, if applicable to the Third Floor Premises
Work or the Sixth Floor Premises Work (as the case may be), or evidence of
governmental inspection and approval of the Third Floor Premises Work or the
Sixth Floor Premises Work (as the case may be).

        11.     CANCELLATION OF MUST-TAKE AND EXPANSION OPTIONS.  Landlord and
Tenant acknowledge and agree that Tenant's obligation to lease the Must-Take
Space as provided in EXHIBIT H (Must-Take Expansion Obligation) of the Lease
has been assumed by Tenant pursuant to, and as reflected in, the First
Amendment; accordingly, EXHIBIT H of the Lease is hereby deleted in its
entirety.  Landlord and Tenant acknowledge and agree that the lease of the
Sixth Floor Premises and the Third Floor Premises on the terms and conditions
set forth in this Amendment is intended to be in lieu of, in satisfaction of,
and in settlement of, the First First-Year Expansion Option and the Second
First-Year Expansion Option set forth in EXHIBIT I (Expansion Options) with
respect to the First Expansion Area and Second Expansion Area; accordingly,
EXHIBIT I of the Lease is hereby deleted in its entirety.

        12.     LANDLORD'S RIGHT TO LEASE FOURTH AND FIFTH FLOORS.  Tenant
hereby expressly acknowledges and agrees that Landlord shall have the right
and authority to lease to third party(ies) (the "THIRD PARTY", whether one or
more) all or any portions of the fourth and fifth floors of the Building (the
"THIRD PARTY LEASE", whether one or more), on such terms and conditions as
Landlord and such Third Party deem acceptable, free and clear of any and all
preferential, first refusal, expansion or other rights or claims of Tenant to
such space under EXHIBIT G (which has been revised and restated as hereinafter
provided) and/or EXHIBIT I (which has been terminated as hereinabove provided)
or any other section, exhibit or provision of the Lease, and Tenant further
agrees that it has no current rights whatsoever with regard to such floors.
Landlord agrees that Tenant shall have such future rights with respect to the
fourth and fifth floors (and only such rights) as are expressly set forth in
EXHIBIT G of the Lease, as revised and restated pursuant to this Amendment.

        13. CLARIFICATION AND RESTATEMENT OF EXHIBIT G.  In recognition of the
respective rights and interests allocated between Landlord and Tenant herein
with respect to the third, fourth, fifth and sixth floors of the Building, and
to avoid future controversy and confusion between Landlord and Tenant,
Landlord and Tenant desire to revise and restate EXHIBIT G of the Lease in its
entirety.  Accordingly, the form of EXHIBIT G attached to the Lease is hereby
deleted in its entirety, and the form of EXHIBIT G attached hereto and
incorporated herein is substituted in place thereof.   In addition, the form
of EXHIBIT A-5 attached to the Lease

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is hereby deleted in its entirety, and the form of EXHIBIT A-5 attached hereto
and incorporated herein is substituted in place thereof.

        14.     CALCULATION OF RENTABLE AREA.  Section 26(d) of the Lease is
hereby amended by deleting the clause "provided, however, that for all
purposes under this Lease, the multi-tenant loss factor shall not be greater
than 16.2% and the single-tenant loss factor shall not be greater than 9.3%."

        15.     NO DEFAULTS. Landlord and Tenant each warrant to the other
that, after giving effect to the terms and conditions of the Settlement
Agreement and this Amendment, it has no current actual knowledge of any
uncured default or event of default by the other under the Lease.

        16.     BROKERAGE. Landlord and Tenant each warrant to the other that
it has not dealt with any broker or agent in connection with the negotiation
or execution of this Amendment or the Lease other than Trammell Crow
Dallas/Fort Worth, Inc. and The Staubach Company.  Tenant and Landlord shall
each indemnify the other against all costs, expenses, attorneys' fees, and
other liability for commissions or other compensation claimed by any other
broker or agent claiming the same by, through, or under the indemnifying
party. The commissions of the Staubach Company shall be paid by Landlord if,
as, and when required pursuant to the commission agreement attached as EXHIBIT
N to the Lease.

        17.     RATIFICATION.  Landlord and Tenant hereby ratify and affirm
the Lease and agree that the Lease is and shall remain in full force and
effect, except as expressly amended hereby.

        18.     MISCELLANEOUS.  This Amendment shall be binding upon Landlord
and Tenant and their respective successors and assigns; may be executed in two
or more counterparts, each of which shall be deemed an original, and all of
which together shall constitute one and the same instrument; and shall be
governed by the laws of the State of Texas.

                            [Signature Page Follows]

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        EXECUTED as of the date first above written.

        LANDLORD:                       COLLINS CROSSING, LTD.,
                                        a Texas limited partnership

                                        By: TCDFW-Collins Crossing, Ltd.,
                                            a Texas limited partnership,
                                            its general partner

                                            By: TCDFW #1, Inc.,
                                                a Delaware corporation,
                                                its sole general partner

                                                By:  __________________________
                                                Name: _________________________
                                                Title: ________________________

TENANT:                                 INET TECHNOLOGIES, INC.,
                                        a Delaware corporation

                                        By: ___________________________________
                                        Name: _________________________________
                                        Title: ________________________________

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                                  EXHIBIT A-5

                          OUTLINE OF ADDITIONAL SPACE

                                   [attached]
<PAGE>

                                   EXHIBIT G

                            RIGHT OF FIRST REFUSAL

        1.      If at any Qualifying Time (as hereinafter defined), Landlord
receives a Qualifying Offer (as hereinafter defined) to lease all or a portion
of the tenant space on the portions of first, fourth and fifth floors of the
Building depicted on EXHIBIT A-5 hereof (the "ADDITIONAL SPACE") which
Landlord desires to accept, Landlord shall so notify Tenant in writing (a
"REFUSAL NOTICE") and shall (a) identify the Additional Space affected thereby
(the "REFUSAL SPACE"); (b) specify the rent to be paid and the allowances (if
any) to be provided for the Exercise Space (as hereinafter defined), which
shall be the rent to be paid and the allowances (if any) to be provided under
such Qualifying Offer which Landlord desires to accept; (c) specify the lease
term for the Exercise Space which shall be (i) if such Refusal Notice is given
within sixty (60) months of the Commencement Date, coterminous with the
initial Lease Term, and (ii) if such Refusal Notice is given more than sixty
(60) months after the Commencement Date, such term as is provided in the
Qualifying Offer Landlord desires to accept, but not expiring sooner than the
expiration of the initial Lease Term; and (d) the date on which the Exercise
Space shall be included in the Premises. Within ten (10) business days after
Landlord delivers to Tenant the Refusal Notice, Tenant shall notify Landlord
in writing that (1) Tenant elects to lease at the rental rate set forth in the
Refusal Notice all or a portion of the Refusal Space, provided that Tenant
must elect to lease not less than one additional full floor in the Building
(the space as to which Tenant exercises its option, which if not coextensive
with the Refusal Space shall be mutually agreed to by Landlord and Tenant,
being hereinafter called the "EXERCISE SPACE"), or (2) Tenant elects not to
lease the Refusal Space. If Tenant timely elects to lease the Exercise Space,
then Landlord and Tenant shall execute an amendment to this Lease, effective
as of the date the Exercise Space is to be included in the Premises, on the
same terms as this Lease except that (x) the rentable area of the Premises
shall be increased by the rentable area in the Exercise Space (and Tenant's
Proportionate Share shall be adjusted accordingly), (y) the Basic Rental for
such space shall be the rental rate set forth in the Refusal Notice, and (z)
the allowances (if any) contained in the Qualifying Offer which Landlord
desires to accept will be provided. If, however, Tenant does not elect within
the time and in the manner above provided to exercise said option, then
Landlord may lease the Refusal Space to third parties. If a lease for such
Refusal Space is not fully executed within one hundred eighty (180) days
following the expiration of the ten (10) business day period mentioned above,
then the Refusal Space shall again be subject to the refusal right in
accordance with the foregoing provisions of this paragraph 1.

        2.      As used in this Exhibit, the term "QUALIFYING OFFER" shall
mean a bona fide offer from a third-party, which is not (a) pursuant to
then-existing preferential rights or renewal or expansion options of other
tenants in the Building, or (b) from the then-current tenant in the applicable
space. As used in this Exhibit, the term "QUALIFYING TIME" means (i) with
respect to the Additional Space located on the first floor of the Building,
any time during the Term of this Lease; and (ii) with respect to the
Additional Space located on the fourth and fifth floors of the Building, any
time after the expiration or earlier termination of the Third Party Lease and
prior to the expiration or earlier termination of this Lease.  Landlord and
Tenant expressly agree that any offer that is other than a Qualifying Offer or
that is received other than at a Qualifying Time shall not be subject to
Tenant's refusal rights hereunder.

        3.      The refusal rights granted to Tenant under this EXHIBIT G
shall also be applicable to any Qualifying Offer received by Landlord during
the Term of this Lease to lease tenant space in any office building which
Landlord or CCII constructs on the Development Site, other than an office
building constructed pursuant to a build-to-suit or other similar arrangement
whereby such building is developed for the principal use and benefit of a
single or lead tenant.

<PAGE>

        4.      Tenant may not exercise its rights under this Exhibit if an
Event of Default (which has continued beyond any applicable cure period)
exists or, after the Commencement Date, Inet Technologies, Inc. is not then in
occupancy of at least seventy-five percent (75%) of the net rentable area of
the Premises.  Tenant's rights under this Exhibit shall terminate if (a) this
Lease or Tenant's right to possession of the Premises is terminated or (b)
Tenant assigns any of its interest in this Lease other than to a Permitted
Transferee.  No sublessee or assignee of Tenant shall have any rights under
this Exhibit.

                                        2<PAGE>

                                 EXHIBIT 10.11.1

                             ULTRATECH STEPPER, INC.

                          EMPLOYEE STOCK PURCHASE PLAN

                   (AS AMENDED AND RESTATED OCTOBER 17, 2000)

I. PURPOSE OF THE PLAN

           This Employee Stock Purchase Plan is intended to promote the
interests of Ultratech Stepper, Inc., a Delaware corporation, by providing
Eligible Employees with the opportunity to acquire a proprietary interest in the
Corporation through participation in a payroll deduction-based employee stock
purchase plan designed to qualify under Section 423 of the Code.

           Capitalized terms herein shall have the meanings assigned to such
terms in the attached Appendix.

           The provisions of this October 2000 restatement shall become
effective with the offering period commencing on February 16, 2001 and shall not
have any force or effect prior to such date.

II. ADMINISTRATION OF THE PLAN

           The Plan Administrator shall have full authority to interpret and
construe any provision of the Plan and to adopt such rules and regulations for
administering the Plan as it may deem necessary in order to comply with the
requirements of Code Section 423. Decisions of the Plan Administrator shall be
final and binding on all parties having an interest in the Plan.

III. STOCK SUBJECT TO PLAN

           A. The stock purchasable under the Plan shall be shares of authorized
but unissued or reacquired Common Stock, including shares of Common Stock
purchased on the open market. The number of shares of Common Stock initially
reserved for issuance over the term of the Plan shall be limited to 950,000
shares. Such authorized share reserve is comprised of (i) the initial 200,000(1)
shares authorized by the Board and approved by the Corporation's stockholders
prior to the Plan Effective Date, (ii) an additional increase of 250,000 shares
authorized by the Board in March 1997 and approved by the Corporation's
stockholders at the 1997 Annual Meeting and (iii) a further increase of 500,000
shares of Common Stock authorized by the Board on March 16, 1999 and approved by
the Corporation's stockholders at the 1999 Annual Meeting. The 500,000-share
increase became effective with the offering period commencing August 2, 1999.

------------------------------------------------------------------------------
(1) As adjusted to reflect the 2:1 stock split the Corporation effected
May 10, 1995

                                                                              57
<PAGE>

           B. Should any change be made to the Common Stock by reason of any
stock split, stock dividend, recapitalization, combination of shares, exchange
of shares or other change affecting the outstanding Common Stock as a class
without the Corporation's receipt of consideration, appropriate adjustments
shall be made to (i) the maximum number and class of securities issuable under
the Plan, (ii) the maximum number and class of securities purchasable per
Participant on any one Purchase Date, (iii) the maximum number and class of
securities purchasable in total by all Participants on any one Purchase Date and
(iv) the number and class of securities and the price per share in effect under
each outstanding purchase right in order to prevent the dilution or enlargement
of benefits thereunder.

IV. OFFERING PERIODS

           A. Shares of Common Stock shall be offered for purchase under the
Plan through a series of overlapping offering periods until such time as (i) the
maximum number of shares of Common Stock available for issuance under the Plan
shall have been purchased or (ii) the Plan shall have been sooner terminated.

           B. Each offering period shall be of such duration (not to exceed
twenty-four (24) months) as determined by the Plan Administrator prior to the
start date of such offering period. Offering periods shall commence at
semi-annual intervals on February 16 (or, if such day is not a business day,
then the first business day thereafter) and on the first business day of August
each year over the term of the Plan. Accordingly, two (2) separate offering
periods shall commence in each calendar year the Plan remains in existence.

           C. Each offering period shall consist of a series of one or more
successive Purchase Intervals. Purchase Intervals shall run from February 16
(or, if such day is not a business day, then the first business day thereafter)
to the last business day in July each year and from the first business day in
August each year to February 15th (or, if such day is not a business day, then
the immediately preceding business day) in the following year.

           D. Should the Fair Market Value per share of Common Stock on any
Purchase Date within a particular offering period be less than the Fair Market
Value per share of Common Stock on the start date of that offering period, then
the individuals participating in such offering period shall, immediately after
the purchase of shares of Common Stock on their behalf on such Purchase Date, be
transferred from that offering period and automatically enrolled in the next
offering period commencing after such Purchase Date.

V. ELIGIBILITY

           A. Each individual who is an Eligible Employee on the start date of
any offering period under the Plan may enter that offering period on such start
date. However, an Eligible Employee may participate in only one offering period
at a time.

           B. Except as otherwise provided in Section IV.D. above, an Eligible
Employee must, in order to participate in a particular offering period, complete
the enrollment forms prescribed by the Plan Administrator (including a stock
purchase agreement and a payroll deduction authorization) and file such forms
with the Plan Administrator (or its designate) on or before the start date of
that offering period.
VI. PAYROLL DEDUCTIONS
           A. The payroll deduction authorized by the Participant for purposes
of acquiring shares of Common Stock during an offering period may be any
multiple of one percent (1%) of the Base Salary paid to the Participant during
each Purchase Interval within that offering period, up to a maximum of ten
percent (10%). The deduction rate so authorized shall continue in effect
throughout the offering period, except to the extent such rate is changed in
accordance with the following guidelines:

                 (i) The Participant may, at any time during the offering
           period, reduce his or her rate of payroll deduction to become
           effective as soon as possible after filing the appropriate form with
           the Plan Administrator. The Participant may not, however, effect more
           than one (1) such reduction per Purchase Interval.

                 (ii) The Participant may, prior to the commencement of any new
           Purchase Interval within the offering period, increase the rate of
           his or her payroll deduction by filing the appropriate form with the
           Plan Administrator. The new rate (which may not exceed the ten
           percent (10%) maximum) shall become effective on the start date of
           the first Purchase Interval following the filing of such form.

                                                                              58
<PAGE>

           B. Payroll deductions shall begin on the first pay day
administratively feasible following the start date of the offering period and
shall (unless sooner terminated by the Participant) continue through the pay day
ending with or immediately prior to the last day of that offering period. The
amounts so collected shall be credited to the Participant's book account under
the Plan, but no interest shall be paid on the balance from time to time
outstanding in such account. The amounts collected from the Participant shall
not be required to be held in any segregated account or trust fund and may be
commingled with the general assets of the Corporation and used for general
corporate purposes.

           C. Payroll deductions shall automatically cease upon the termination
of the Participant's purchase right in accordance with the provisions of the
Plan.

           D. The Participant's acquisition of Common Stock under the Plan on
any Purchase Date shall neither limit nor require the Participant's acquisition
of Common Stock on any subsequent Purchase Date, whether within the same or a
different offering period.

VII. PURCHASE RIGHTS
           A. Grant of Purchase Rights. A Participant shall be granted a
separate purchase right for each offering period in which he or she is enrolled.
The purchase right shall be granted on the start date of the offering period and
shall provide the Participant with the right to purchase shares of Common Stock,
in a series of successive installments during that offering period, upon the
terms set forth below. The Participant shall execute a stock purchase agreement
embodying such terms and such other provisions (not inconsistent with the Plan)
as the Plan Administrator may deem advisable.

           Under no circumstances shall purchase rights be granted under the
Plan to any Eligible Employee if such individual would, immediately after the
grant, own (within the meaning of Code Section 424(d)) or hold outstanding
options or other rights to purchase, stock possessing five percent (5%) or more
of the total combined voting power or value of all classes of stock of the
Corporation or any Corporate Affiliate.

           B. Exercise of the Purchase Right. Each purchase right shall be
automatically exercised in installments on each successive Purchase Date within
the offering period, and shares of Common Stock shall accordingly be purchased
on behalf of each Participant on each such Purchase Date. The purchase shall be
effected by applying the Participant's payroll deductions for the Purchase
Interval ending on such Purchase Date to the purchase of whole shares of Common
Stock at the purchase price in effect for the Participant for that Purchase
Date.

           C. Purchase Price. The purchase price per share at which Common Stock
will be purchased on the Participant's behalf on each Purchase Date within the
particular offering period in which he or she is enrolled shall be equal to
eighty-five percent (85%) of the lower of (i) the Fair Market Value per share of
Common Stock on the start date of that offering period or (ii) the Fair Market
Value per share of Common Stock on that Purchase Date.

           D. Number of Purchasable Shares. The number of shares of Common Stock
purchasable by a Participant on each Purchase Date during the particular
offering period in which he or she is enrolled shall be the number of whole
shares obtained by dividing the amount collected from the Participant through
payroll deductions during the Purchase Interval ending with that Purchase Date
by the purchase price in effect for the Participant for that Purchase Date.
However, the maximum number of shares of Common Stock purchasable per
Participant on any one Purchase Date shall not exceed 1,000 shares, subject to
periodic adjustments in the event of certain changes in the Corporation's
capitalization. In addition, the maximum number of shares of Common Stock
purchasable in total by all Participants in the Plan on any one Purchase Date
shall not exceed 75,000 shares, subject to periodic adjustments in the event of
certain changes in the Corporation's capitalization. However, the Plan
Administrator shall have the discretionary authority, exercisable prior to the
start of any offering period under the Plan, to increase or decrease the
limitations to be in effect for the number of shares purchasable per Participant
and in total by all Participants enrolled in that particular offering period on
each Purchase Date which occurs during that offering period.

           E. Excess Payroll Deductions. Any payroll deductions not applied to
the purchase of shares of Common Stock on any Purchase Date because they are not
sufficient to purchase a whole share of Common Stock shall be held for the
purchase of Common Stock on the next Purchase Date. However, any payroll
deductions not applied to the purchase of Common Stock by reason of the
limitation on the maximum number of shares purchasable per Participant or in
total by all Participants on the Purchase Date shall be promptly refunded.

                                                                              59
<PAGE>

           F. Termination of Purchase Right. The following provisions shall
govern the termination of outstanding purchase rights:

                 (i) A Participant may, at any time prior to the next scheduled
           Purchase Date in the offering period in which he or she is enrolled,
           terminate his or her outstanding purchase right by filing the
           appropriate form with the Plan Administrator (or its designate), and
           no further payroll deductions shall be collected from the Participant
           with respect to the terminated purchase right. Any payroll deductions
           collected during the Purchase Interval in which such termination
           occurs shall, at the Participant's election, be immediately refunded
           or held for the purchase of shares on the next Purchase Date. If no
           such election is made at the time such purchase right is terminated,
           then the payroll deductions collected with respect to the terminated
           right shall be refunded as soon as possible.

                 (ii) The termination of such purchase right shall be
           irrevocable, and the Participant may not subsequently rejoin the
           offering period for which the terminated purchase right was granted.
           In order to resume participation in any subsequent offering period,
           such individual must re-enroll in the Plan (by making a timely filing
           of the prescribed enrollment forms) on or before the start date of
           that offering period.

                 (iii) Should the Participant cease to remain an Eligible
           Employee for any reason (including death, disability or change in
           status) while his or her purchase right remains outstanding, then
           that purchase right shall immediately terminate, and all of the
           Participant's payroll deductions for the Purchase Interval in which
           the purchase right so terminates shall be immediately refunded.
           However, should the Participant cease to remain in active service by
           reason of an approved unpaid leave of absence, then the Participant
           shall have the right, exercisable up until the last business day of
           the Purchase Interval in which such leave commences, to (a) withdraw
           all the payroll deductions collected to date on his or her behalf for
           that Purchase Interval or (b) have such funds held for the purchase
           of shares on his or her behalf on the next scheduled Purchase Date.
           In no event, however, shall any further payroll deductions be
           collected on the Participant's behalf during such leave. Upon the
           Participant's return to active service (x) within ninety (90) days
           following the commencement of such leave or (y) prior to the
           expiration of any longer period for which such Participant's right to
           reemployment with the Corporation is guaranteed by statute or
           contract, his or her payroll deductions under the Plan shall
           automatically resume at the rate in effect at the time the leave
           began, unless the Participant withdraws from the Plan prior to his or
           her return. An individual who returns to active employment following
           a leave of absence that exceeds in duration the applicable (x) or (y)
           time period will be treated as a new Employee for purposes of
           subsequent participation in the Plan and must accordingly re-enroll
           in the Plan (by making a timely filing of the prescribed enrollment
           forms) on or before the start date of any subsequent offering period
           in which he or she wishes to participate.

           G. Change in Control. Each outstanding purchase right shall
automatically be exercised, immediately prior to the effective date of any
Change in Control, by applying the payroll deductions of each Participant for
the Purchase Interval in which such Change in Control occurs to the purchase of
whole shares of Common Stock at a purchase price per share equal to eighty-five
percent (85%) of the lower of (i) the Fair Market Value per share of Common
Stock on the start date of the offering period in which such individual is
enrolled at the time of such Change in Control or (ii) the Fair Market Value per
share of Common Stock immediately prior to the effective date of such Change in
Control. However, the applicable limitation on the number of shares of Common
Stock purchasable per Participant shall continue to apply to any such purchase,
but not the limitation applicable to the maximum number of shares of Common
Stock purchasable in total by all Participants on any one Purchase Date.

           The Corporation shall use its best efforts to provide at least ten
(10) days' prior written notice of the occurrence of any Change in Control, and
Participants shall, following the receipt of such notice, have the right to
terminate their outstanding purchase rights prior to the effective date of the
Change in Control.

           H. Proration of Purchase Rights. Should the total number of shares of
Common Stock to be purchased pursuant to outstanding purchase rights on any
particular date exceed the number of shares then available for issuance under
the Plan, the Plan Administrator shall make a pro-rata allocation of the
available shares on a uniform and

                                                                              60
<PAGE>

nondiscriminatory basis, and the payroll deductions of each Participant, to the
extent in excess of the aggregate purchase price payable for the Common Stock
pro-rated to such individual, shall be refunded.

           I. Assignability. The purchase right shall be exercisable only by the
Participant and shall not be assignable or transferable by the Participant.

           J. Stockholder Rights. A Participant shall have no stockholder rights
with respect to the shares subject to his or her outstanding purchase right
until the shares are purchased on the Participant's behalf in accordance with
the provisions of the Plan and the Participant has become a holder of record of
the purchased shares.

VIII. ACCRUAL LIMITATIONS

           A. No Participant shall be entitled to accrue rights to acquire
Common Stock pursuant to any purchase right outstanding under this Plan if and
to the extent such accrual, when aggregated with (i) rights to purchase Common
Stock accrued under any other purchase right granted under this Plan and (ii)
similar rights accrued under other employee stock purchase plans (within the
meaning of Code Section 423)) of the Corporation or any Corporate Affiliate,
would otherwise permit such Participant to purchase more than Twenty-Five
Thousand Dollars ($25,000.00) worth of stock of the Corporation or any Corporate
Affiliate (determined on the basis of the Fair Market Value per share on the
date or dates such rights are granted) for each calendar year such rights are at
any time outstanding.

           B. For purposes of applying such accrual limitations to the purchase
rights granted under the Plan, the following provisions shall be in effect:

                 (i) The right to acquire Common Stock under each outstanding
           purchase right shall accrue in a series of installments on each
           successive Purchase Date during the offering period in which such
           right remains outstanding.

                 (ii) No right to acquire Common Stock under any outstanding
           purchase right shall accrue to the extent the Participant has already
           accrued in the same calendar year the right to acquire Common Stock
           under one or more other purchase rights at a rate equal to
           Twenty-Five Thousand Dollars ($25,000.00) worth of Common Stock
           (determined on the basis of the Fair Market Value per share on the
           date or dates of grant) for each calendar year such rights were at
           any time outstanding.

           C. If by reason of such accrual limitations, any purchase right of a
Participant does not accrue for a particular Purchase Interval, then the payroll
deductions that the Participant made during that Purchase Interval with respect
to such purchase right shall be promptly refunded.

           D. In the event there is any conflict between the provisions of this
Article and one or more provisions of the Plan or any instrument issued
thereunder, the provisions of this Article shall be controlling.

IX. EFFECTIVE DATE AND TERM OF THE PLAN

           A. The Plan was adopted by the Board on March 16, 1995 and was
subsequently approved by the Corporation's stockholders at the 1995 Annual
Meeting. The Plan became effective on the Effective Date and was subsequently
amended effective as of February 1, 1996 to include as Participating
Corporations the following Corporate Affiliates; Ultratech Stepper UK, Ltd.,
Ultratech K.K. and Ultratech Stepper International, Inc. On February 3, 1997
UltraBeam Lithography, Inc. was named a Participating Corporation and effective
August 1, 1997, Ultratech Stepper (Thailand) Company, Ltd. was named a
Participating Corporation.

           B. Unless sooner terminated by the Board, the Plan shall terminate
upon the earliest of (i) the last business day in July 2005, (ii) the date on
which all shares available for issuance under the Plan shall have been sold
pursuant to purchase rights exercised under the Plan or (iii) the date on which
all purchase rights are exercised in connection with a Corporate Transaction. No
further purchase rights shall be granted or exercised, and no further payroll
deductions shall be collected, under the Plan following its termination.

           C. The Plan was amended and restated by the Board in March 1997 to
increase the maximum number of shares of Common Stock authorized for issuance
over the term of the Plan by an additional 250,000 shares to 450,000 shares. The
amendment was approved by the Corporation's stockholders at the 1997 Annual
Meeting.

                                                                              61
<PAGE>

           D. The Plan was amended and restated by the Board, effective March
16, 1999 to effect the following revisions: (i) increase the maximum number of
shares of Common Stock authorized for issuance over the term of the Plan by an
additional 500,000 shares to 950,000 shares and (ii) limit the maximum number of
shares of Common Stock purchasable in total by all Participants on any one
Purchase Date to 150,000 shares. The amendment was approved by the Corporation's
stockholders at the 1999 Annual Meeting and will become effective with the
offering period commencing August 2, 1999.

           E. The Plan was amended and restated by the Board, effective February
16, 20001 to effect the following revisions, beginning with the offering period
commencing February 16, 2001: (i) implement a series of overlapping twenty-four
(24)-month offering periods beginning at semi-annual intervals each year, (ii)
establish semi-annual purchase dates within each offering period, (iii) limit
the number of shares of Common Stock purchasable by any one Participant on any
one Purchase Date to a total of 1,000 shares and (iv) limit the maximum number
of shares of Common Stock purchasable in total by all Participants on any one
Purchase Date to 75,000 shares. The amendment was approved on October 17, 2000
by the Corporation's Board of Directors and will become effective with the
offering period commencing February 16, 2000.

X. AMENDMENT OF THE PLAN

           A. The Board may alter, amend, suspend or terminate the Plan at any
time to become effective immediately following the close of any Purchase
Interval. However, the Plan may be amended or terminated immediately upon Board
action, if and to the extent necessary to assure that the Corporation will not
recognize, for financial reporting purposes, any compensation expense in
connection with the shares of Common Stock offered for purchase under the Plan,
should the financial accounting rules applicable to the Plan at the Effective
Time be subsequently revised so as to require the Corporation to recognize
compensation expense in the absence of such amendment or termination.

           B. In no event may the Board effect any of the following amendments
or revisions to the Plan without the approval of the Corporation's stockholders:
(i) increase the number of shares of Common Stock issuable under the Plan,
except for permissible adjustments in the event of certain changes in the
Corporation's capitalization, (ii) alter the purchase price formula so as to
reduce the purchase price payable for the shares of Common Stock purchasable
under the Plan or (iii) modify the eligibility requirements for participation in
the Plan.

                             XI. GENERAL PROVISIONS

           A. All costs and expenses incurred in the administration of the Plan
shall be paid by the Corporation; however, each Plan Participant shall bear all
costs and expenses incurred by such individual in the sale or other disposition
of any shares purchased under the Plan.

           B. Nothing in the Plan shall confer upon the Participant any right to
continue in the employ of the Corporation or any Corporate Affiliate for any
period of specific duration or interfere with or otherwise restrict in any way
the rights of the Corporation (or any Corporate Affiliate employing such person)
or of the Participant, which rights are hereby expressly reserved by each, to
terminate such person's employment at any time for any reason, with or without
cause.

           C. The provisions of the Plan shall be governed by the laws of the
State of California without resort to that State's conflict-of-laws rules.

                                                                              62
<PAGE>

                                   SCHEDULE A
           CORPORATIONS PARTICIPATING IN EMPLOYEE STOCK PURCHASE PLAN

                             Ultratech Stepper, Inc.

                           Ultratech Stepper UK, Ltd.

                                 Ultratech K.K.

                      Ultratech Stepper International, Inc.

                   Ultratech Stepper (Thailand) Company, Ltd.

                         Integrated Lithography Systems, Inc.

                                                                              63
<PAGE>

                                    APPENDIX

The following definitions shall be in effect under the Plan:

           A. BOARD shall mean the Corporation's Board of Directors.

           B. BASE SALARY shall mean the regular base salary paid to a
Participant by one or more Participating Companies during such individual's
period of participation in the Plan, calculated before deduction of (i) any
income or employment tax withholdings or (ii) any pre-tax contributions made by
the Participant to any Code Section 401(k) salary deferral plan or any Code
Section 125 cafeteria benefit program now or hereafter established by the
Corporation or any Corporate Affiliate. The following items of compensation
shall not be included in Base Salary: (i) all overtime payments, bonuses,
commissions (other than those functioning as base salary equivalents),
profit-sharing distributions and other incentive-type payments and (ii) any and
all contributions (other than Code Section 401(k) or Code Section 125
contributions deducted from Base Salary) made on the Participant's behalf by the
Corporation or any Corporate Affiliate under any employee benefit or welfare
plan now or hereafter established.

           C. CODE shall mean the Internal Revenue Code of 1986, as amended.

           D. COMMON STOCK shall mean the Corporation's common stock.

           E. CORPORATE AFFILIATE shall mean any parent or subsidiary
corporation of the Corporation (as determined in accordance with Code Section
424), whether now existing or subsequently established.

           F. CHANGE IN CONTROL shall mean a change in ownership of the
Corporation pursuant to any of the following transactions:

                 (i) a merger or consolidation in which securities possessing
           more than fifty percent (50%) of the total combined voting power of
           the Corporation's outstanding securities are transferred to a person
           or persons different from the persons holding those securities
           immediately prior to such transaction, or

                 (ii) the sale, transfer or other disposition of all or
           substantially all of the assets of the Corporation in complete
           liquidation or dissolution of the Corporation, or

                 (iii) the acquisition, directly or indirectly, by a person or
           related group of persons (other than the Corporation or a person that
           directly or indirectly controls, is controlled by or is under common
           control with the Corporation) of beneficial ownership (within the
           meaning of Rule 13d-3 of the 1934 Act) of securities possessing more
           than fifty percent (50%) of the total combined voting power of the
           Corporation's outstanding securities pursuant to a tender or exchange
           offer made directly to the Corporation's stockholders.

           G. CORPORATION shall mean Ultratech Stepper, Inc., a Delaware
corporation, and any corporate successor to all or substantially all of the
assets or voting stock of Ultratech Stepper, Inc., which shall by appropriate
action adopt the Plan.

           H. EFFECTIVE DATE shall mean the first business day in August 1995.
Any Corporate Affiliate which becomes a Participating Corporation after such
Effective Date shall designate a subsequent Effective Date with respect to its
employee-Participants.

           I. ELIGIBLE EMPLOYEE shall mean any person who is engaged, on a
regularly-scheduled basis of more than twenty (20) hours per week for more than
five (5) months per calendar year, in the rendition of personal services to any
Participating Corporation as an employee for earnings considered wages under
Code Section 3401(a).

           J. FAIR MARKET VALUE per share of Common Stock on any relevant date
shall be determined in accordance with the following provisions:

                                                                              64
<PAGE>

                 (i) If the Common Stock is at the time traded on the Nasdaq
           National Market, then the Fair Market Value shall be the closing
           selling price per share of Common Stock on the date in question, as
           such price is reported by the National Association of Securities
           Dealers on the Nasdaq National Market and published in The Wall
           Street Journal. If there is no closing selling price for the Common
           Stock on the date in question, then the Fair Market Value shall be
           the closing selling price on the last preceding date for which such
           quotation exists.

                 (ii) If the Common Stock is at the time listed on any Stock
           Exchange, then the Fair Market Value shall be the closing selling
           price per share of Common Stock on the date in question on the Stock
           Exchange determined by the Plan Administrator to be the primary
           market for the Common Stock, as such price is officially quoted in
           the composite tape of transactions on such exchange and published in
           The Wall Street Journal. If there is no closing selling price for the
           Common Stock on the date in question, then the Fair Market Value
           shall be the closing selling price on the last preceding date for
           which such quotation exists.

           K. PARTICIPANT shall mean any Eligible Employee of a Participating
Corporation who is actively participating in the Plan.

           L. PARTICIPATING CORPORATION shall mean the Corporation and such
Corporate Affiliate or Affiliates as may be authorized from time to time by the
Board to extend the benefits of the Plan to their Eligible Employees. The
Participating Corporations in the Plan as of June 3, 1999 are listed in attached
Schedule A.

           M. PLAN shall mean the Corporation's Employee Stock Purchase Plan, as
set forth in this document.

           N. PLAN ADMINISTRATOR shall mean the Compensation Committee of the
Board in its capacity as administrator of the Plan.

           O. PURCHASE DATE shall mean the last business day of each Purchase
Interval. The initial Purchase Date under this October 17 2000 restatement shall
be July 31, 2001.

           P. PURCHASE INTERVAL shall mean each successive six (6)-month period
within a particular offering period at the end of which there shall be purchased
shares of Common Stock on behalf of each Participant.

           Q. SECURITIES ACT shall mean the Securities Act of 1933, as amended.

           R. STOCK EXCHANGE shall mean either the American Stock Exchange or
the New York Stock Exchange.

                                                                              65

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