Item 5.02 Departure of Directors or Certain Officers; Election of Directors;
Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.

(e) Effective June 1, 2009, the base salary for Richard S. Hill, the Chief Executive Officer of Novellus Systems, Inc. (the "Company"), will be ninety percent (90%) of his previously reported 2008 base salary. Since January 1, 2009, at the request of Mr. Hill, the Company has paid Mr. Hill fifty percent (50%) of his 2008 base salary.

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