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                                                                   EXHIBIT 10.28

September  24, 2002

Mr. Robert Smith
125 Lakeview Drive

Woodside, CA  94062-1124

Dear Bob:

Congratulations on your retirement as an officer of Novellus effective September
30, 2002. While you will continue as an employee advisor to the Company over the
next several years, it will not be at the hectic pace of the last five years.

As you and I discussed, you will receive a one time bonus payment of $325,000 on
October 1, 2002. In addition, you will go to one half salary ($162,500
annualized) from October 1, 2002 until September 30, 2003, at which time you
will further reduce to one quarter salary ($81,250 annualized) from October 1,
2003 until September 30, 2004. Beginning October 1, 2004 your salary will be
reduced to $40,625 until September 30, 2006 at which time all payments from
Novellus will cease.

Your participation in the Employee Stock Purchase Plan via after-tax payroll
deductions will continue until September 30, 2006, unless you choose to stop
your contributions and withdraw from the Plan. Your outstanding unvested stock
options will immediately vest as of September 30, 2002. You may exercise your
Company stock options until September 30, 2006. After September 30, 2006, all
vested stock options will lapse if not exercised within ninety (90) days.

Novellus will continue to pay one hundred percent of the cost of your medical,
dental, vision, life and long term disability insurance coverage and a portion
for your dependents during this entire period. Your pre-tax payroll deductions
for your share in the cost of dependent coverage must continue in order to
maintain coverage for them. The life insurance benefit would be paid to your
beneficiary at 2x the rate of your current salary. That means if your salary was
$40,625 it would pay the maximum benefit allowed of $81,250. After September 30,
2006 you will be eligible to convert your life insurance coverage to an
individual policy.

After September 30, 2006 you will also be eligible to convert certain benefits
including your medical, dental, and vision insurance coverage under COBRA for up
to 18 months, and will be provided with information describing this conversion
election at that time. Except for the terms outlined in this letter, you will
not be entitled to any compensation, benefits or other perquisites of employment
after September 30, 2006.

It has been enjoyable working with you over the last five years. You have made
many lasting contributions to the company that will always be appreciated. You
have had a lasting effect on the company and the people with whom you have
worked and we look forward to continuing to work with you over the next four
years.

Sincerely,

NOVELLUS SYSTEMS, INC.

Richard S. Hill
Chairman and CEO

Cc:   Novellus Board of Directors
      Novellus Human Resources Department<PAGE>
                                                                   EXHIBIT 10.29

                   SEPARATION AGREEMENT AND GENERAL RELEASE

     In consideration of the commitments set forth below, Asuri S. Raghavan
("you") and Novellus Systems, Inc. ("Novellus") enter into this Separation
Agreement and General Release ("Release").

          1. SEVERANCE BENEFIT. Within ten (10) days after your execution of the
Release, you will be eligible to receive from Novellus the benefits described
in subparagraphs 1.a. and 1.b. below, which, for purposes of this Release will
be defined as the "Severance Benefit."

     a. Continuation of your base salary for a period of two (2) years and an
annual bonus payment up to 100% of your total target bonus amount, which will
be paid in accordance with Novellus' normal payroll and bonus payout
procedures, respectively; and

     b. Continued vesting of the Incentive Stock Option of 300,000 shares
described in your January 12, 2001 offer letter with Novellus for two (2) years
or until fully vested, whichever occurs first, and continued vesting for two (2)
years of any stock option grants that you received in addition to the Incentive
Stock Option of 300,000 shares described in your January 12, 2001 offer letter
with Novellus.

     c. In addition, if you properly elect to continue your benefits under
COBRA, Novellus will pay your COBRA premiums from the date of termination,
February 5, 2003 through March 31, 2003. Your Medical, Dental, Vision, Employee
Assistance Program, insurance coverage will be uninterrupted for the duration
of the severance. You will also be eligible to convert certain benefits
including your Medical, Dental, Vision, Employee Assistance Program, insurance
coverage under COBRA for up to 18 months, and will be provided with information
describing this conversion election.

The Severance Benefit shall be less any applicable withholdings. In addition,
Novellus makes no representations or warranties regarding the tax consequences
of the Severance Benefit and will issue a W-2 and/or Form 1099-MISC as it deems
appropriate. You will be eligible for the Severance Benefit within ten (10)
days of Novellus' receipt of this Release signed by you. You acknowledge that
you are not otherwise entitled to this consideration under the policies and
procedures of Novellus, GaSonics, or applicable law.

          2. RELEASE OF CLAIMS. In return for the Severance Benefit, you,
including your representatives, heirs, successors, and assigns, completely
release and forever discharge from and agree to not file, cause to be filed or
pursue against GaSonics or Novellus, including their respective affiliated
corporations, present and former officers, directors, agents, employees, and
assigns ("Released Parties") all claims, rights, demands, actions, liabilities,
causes of action, and obligations of any kind whatsoever, whether known or
unknown, suspected or unsuspected, which you may now have or ever have had
against the Released Parties from the beginning of time through the Effective
Date (as defined below) including, but not limited to, claims for breach of
contract, tort, employment discrimination (including any claims arising under
Title VII of the Civil Rights Act of 1964, the California Fair Employment and
Housing Act, the Arizona Civil Rights Act, the Americans with Disabilities Act,
the Worker Adjustment and Retraining Notification Act), and all claims
otherwise arising from your employment relationship with any

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of the Released Parties or termination thereof, including claims for stock
grants or options, compensation, severance pay, any and all claims for
violation of any federal, state, or municipal statutes or common law, and any
and all claims for attorneys' fees and costs ("Released Claims").

     3.   AGE DISCRIMINATION CLAIMS. You also acknowledge that the release of
claims under the Age Discrimination in Employment Act ("ADEA") is subject to
special waiver protection. Accordingly, you specifically agree that you
knowingly and voluntarily release and waive any rights or claims of
discrimination under the ADEA. In particular, you represent and acknowledge
that you understand the following: (a) you are not waiving rights or claims for
age discrimination under the ADEA that may arise after the date you sign this
Release; (b) you are waiving rights or claims for age discrimination under the
ADEA in exchange for the payments described herein; (c) you have been given an
opportunity to consider fully the terms of this Release for twenty-one (21)
days, although you are not required to do so and have the option of signing
earlier; (d) no change to the terms of this Release, whether material or
immaterial, will extend the twenty-one (21) day review period; (e) you have
been advised to consult with an attorney of your choosing before signing this
Release; (f) you understand you have seven (7) days after you sign this Release
in which to revoke only your waiver of ADEA claims in this Release by sending a
certified letter to that effect to David Powell, HR Director, 3970 N. First
Street, M/S 235 San Jose, CA 95134; and (g) the portion of this Release that
pertains to the release of claims under the ADEA shall not become effective or
enforceable until the 7-day revocation period has expired, but that all other
provisions of this Release will become effective upon your execution of this
Release ("Effective Date").

     4.   RELEASE OF UNKNOWN CLAIMS. You further agree that because this
Release specifically covers known and unknown claims, you waive your rights
under Section 1542 of the California Civil Code or under any other comparable
law of another jurisdiction that limits a general release to claims that are
known to exist at the date of this Release. Section 1542 of the California
Civil Code states as follows:

     A general release does not extend to claims that the creditor does not know
     or suspect to exist in his favor at the time of executing the release,
     which if known by him must have materially affected his settlement to the
     debtor.

     5.   PROPRIETARY INFORMATION AND POST-TERMINATION OBLIGATIONS. You agree
not to disclose, use or otherwise misappropriate any trade secrets or other
confidential and proprietary information belonging to any of the Released
Parties or acquired by you during your employment with any of the Released
Parties. You also acknowledge that agreements you signed related to the
proprietary, confidential, and/or trade secret information of any of the
Released Parties, including but not limited to your January 11, 2001 Novellus
Systems, Inc. Employee Proprietary Information and Inventions Agreement, remain
in effect even following your execution of this Release. You further agree
that you shall not, for yourself or any third party, directly or indirectly
(a) divert or attempt to divert from the Company any business of any kind,
including without limitation the solicitation or interference with any of its
customers, clients, members, business partners or suppliers, or (b) solicit or
otherwise induce any person employed by Novellus to terminate his or her
employment.

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     6. CONFIDENTIALITY. You further agree to maintain this Release and its
contents in the strictest confidence and agree that you will not disclose
the terms of this Release to any third party without the prior written consent
of Novellus, unless otherwise required by law. You also agree not to make any
disparaging statements about any of the Released Parties. Notwithstanding the
foregoing, you may disclose the terms of this Release to your spouse, and for
legitimate business reasons, to legal, financial, and tax advisors.

     7.   ARBITRATION. The parties agree that any and all disputes arising out
of the terms of this Release or their interpretation, or any of the matters
herein being released shall be resolved by final and binding arbitration in
Santa Clara County, California before the American Arbitration Association
under its National Rules for the Resolution of Employment Disputes.

     8.   ENTIRE AGREEMENT. The parties also agree that this letter contains
all of our agreements and understandings with respect to the subject matter of
this Release and may not be contradicted by evidence of any prior
contemporaneous agreement, except to the extent that the provisions of any such
agreement have been expressly referred to in this Release as having continued
effect. With the exception of enforceability issues related to the arbitration
procedure in the preceding section, which shall be governed by the Federal
Arbitration Act, it is agreed that this Release shall be governed by the laws
of the State of California. If any provision of this Release or the
application thereof to any person, place, or circumstance shall be held by a
court of competent jurisdiction to be invalid, unenforceable, or void, the
remainder of this Release and such provision as applied to other person,
places, and circumstances shall remain in full force and effect.

     9.   KNOWING WAIVER. Finally, you acknowledge each of the following: (a)
you have read this Release or have been afforded every opportunity to do so;
(b) you are fully aware of the Release's contents and legal effect; and (c) you
have chosen to enter into this Release freely, without coercion and based upon
your own judgment and not in reliance upon any promises other than those
contained in this Release.

/s/  Asuri S. Raghavan                   Date:    2/5/03
------------------------------------          --------------
     Asuri S. Raghavan

/s/  Alyssa Marcyes                      Date:    2/5/03        am 2/5/03
------------------------------------          --------------
     Alyssa Marcyes, Employee Relations Mgr.

     /s/ D.S. Powell           2/5/03
     Novellus Systems, Inc.

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