ULTRATECH STEPPER INC
EX-10.16
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<DESCRIPTION>EX-10.16
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<p align="right" style="margin:0in 0in .0001pt;text-align:right;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">EXHIBIT 10.16</font></b></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



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  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Date:</font></p>

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  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">NON-DISCLOSURE

AGREEMENT - Control No. #294</font></b></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">This Agreement is made on this 1st day of&#160; October, 2002 (the &#147;Effective Date&#148;) by and between Ultratech

Stepper, Inc., a Delaware Corporation with offices at 3050 Zanker Road, San

Jose, CA 95134 (the &#147;Company&#148;) and Ellery Buchanan with offices at 2907 Navidad

Cove, Austin, TX 78735 (the &#147;Recipient&#148;), relating to the disclosure by the

Company to Recipient of&#160; confidential

information, which information is being disclosed only for the purpose of the

Recipient fulfilling the terms of the Consulting Agreement dated October 1,

2002 by and between Recipient and Company.</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">As used herein, the term &#147;Confidential Information&#148; shall mean all

information and data furnished by the Company to Recipient, whether in oral,

written, graphic or machine-readable form, including but not limited to,

specifications, ideas, know-how, drawings, samples, reports, plans, forecasts,

current or historical data, computer programs or documentation and all other technical,

marketing, operating, financial or business data. Information which is

disclosed orally shall be considered Confidential Information if it is

identified as confidential or proprietary at the time of disclosure.</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Recipient understands and agrees that the information and data which

are the subject of this Agreement are confidential and proprietary and of great

value to the Company. In consideration of the Company&#146;s undertaking to disclose

the Confidential Information referred to herein, Recipient agrees as follows:</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1. Recipient agrees that it shall hold the Confidential Information in

strict confidence and store it in a safe place, and shall not communicate or

disclose the Confidential Information to any third party without the written

consent of the Company. Should the Company authorize the Recipient to disclose

the Confidential Information to a third party, Recipient shall execute a

similar Non-Disclosure Agreement with the third party prior to disclosing such

information.&#160; Recipient shall not use such

Confidential Information to benefit itself or others, and agrees to use the

Confidential Information only internally and for the purpose(s) described

herein.</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2. Recipient agrees not to disclose the Confidential Information within

its own organization except to those employees who have a need to know, and

Recipient shall obtain from each employee having access to such Confidential

Information a written agreement to abide by the terms hereof.</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3. The parties agree that the Confidential Information disclosed is and

will remain the property of the Company, and that such Confidential Information

shall not be copied or reproduced without the express written permission of the

Company. Recipient may keep all Confidential Information disclosed while the

Consulting Agreement for the above referenced Control Number is in force, and

shall return the Confidential Information at the end of this period, or upon

request of the Company, whichever occurs first. At such time, the originals and

all copies of such Confidential Information shall be immediately returned to

the Company.</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4. Recipient&#146;s obligations set forth herein shall not apply with

respect to any portion of the Confidential Information the Recipient can

document:</font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">a. is within

or later falls within the public domain and is generally available without

breach of this Agreement; or</font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">b. was known

to Recipient prior to disclosure by the Company or becomes known to Recipient

from a third party not owing obligations of confidence to the Company; or</font></p>



<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">c. is

independently developed by Recipient as evidenced by its records without use of

any Confidential Information by employees of Recipient who have had access to

such information.</font></p>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>





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<p align="center" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5. Nothing contained in this Agreement shall be construed as granting

any ownership rights to Recipient or any other intellectual property right or

license in any Confidential Information, nor constitute any representation,

warranty or assurance by the Company with respect to the infringement of any

trademark, patent, copyright, trade secret or any right of third persons.</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6. Either party may terminate this Agreement by providing thirty days

written notice to the other party.&#160;

However, Recipient&#146;s obligations as set forth herein for Confidential

Information disclosed during the course of this Agreement shall remain in full

force and effect in perpetuity.</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">7. This Agreement may not be assigned by Recipient. Any attempted

assignment by Recipient shall be void and of no effect.</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">8. This Agreement shall be governed by and construed in accordance with

the laws of the state of California. The parties hereto submit to the

jurisdiction of the courts in Santa Clara County, CA in any action brought by

the parties hereto concerning this Agreement or the performance thereof.</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">9. If any legal action arises relating to this Agreement, the

prevailing party shall be entitled to its court costs, expenses and reasonable

attorney&#146;s fees.</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">10. If any term or provision of this Agreement shall be held illegal,

unenforceable, or unlawful, the validity of the remaining portions or

provisions shall not be affected thereby.</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">11. This Agreement contains the entire understanding of the parties

with respect to the subject matter herein and supersedes all prior agreements

or understandings. This Agreement shall not be modified except in writing

signed by both parties.</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">IN WITNESS WHEREOF, the parties have caused this Agreement to be

effective as of the Effective Date.</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



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  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/ Ellery Buchanan</font></p>

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  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

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  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Ultratech Stepper, Inc.</font></p>

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  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;Recipient&#148;</font></p>

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  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The &#147; Company&#148;</font></p>

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  <p style="margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/ Heidi Ordwein</font></p>

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  <p style="margin:0in 0in .0001pt 30.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Director, Human Resources</font></p>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2</font></p>





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