EXHIBIT 10.2

 

[LOGO]

 

AMENDMENT NO. 2 TO LOAN DOCUMENTS

 

This Amendment No. 2 (the “Amendment”) dated as of October 27, 2003, is between
Bank of America, NA. (“Lender”) and Newport Corporation (“Borrower”).

 

RECITALS

 

A. Borrower has executed various documents concerning credit extended by the
Lender, including, without limitation, the following documents (the “Loan
Documents”):

 

1. A certain Business Loan Agreement dated as of September 25, 2002 (together
with any previous amendments, the “Loan Agreement”).

 

2. A certain Promissory Note dated as of September 25, 2002 in the original
principal amount of $5,000,000.00 (together with any previous amendments, the
“Note”).

 

B. Lender and Borrower desire to amend the Loan Documents.

 

AGREEMENT

 

1. Definitions. Capitalized terms used but not defined in this Amendment shall
have the meaning given to them in the Loan Documents.

 

2. Amendments to Loan Agreement. The Loan Agreement is hereby amended as
follows:

 

(a) In paragraph number 1.1 (c) of the Exhibit to Loan Agreement, entitled
“Availability Period,” the date December 1, 2003 is changed to December 1, 2004.

 

(b) Paragraph number 1.1(d)(ii) of the Exhibit to Loan Agreement is amended to
read in its entirety as follows:

 

(ii) standby letters of credit with a maximum maturity of 365 days but not to
extend more than 365 days beyond the Expiration Date. The standby letters of
credit may include a provision providing that the maturity date will
automatically extend each year for an additional year unless the Bank gives
written notice to the contrary at least 60 days prior to such maturity date.

 

3. Amendments to Note. The Note is hereby amended as follows:

 

(a) In the paragraph entitled “Payment,” the date December 1, 2003 is changed to
December 1, 2004.

 

(b) The following paragraph is hereby added immediately following the paragraph
entitled “Line of Credit”:

 

Advances under the Line of Credit. Except as otherwise provided in this Note,
advances under the line of credit provided under this Note will be available
until the earlier of any event of default under this Note, or December 1, 2004
(the “Expiration Date”). Borrower may borrow, repay and reborrow under this Note
at any time until the Expiration Date. The total principal amount outstanding
under this Note at any one time must not exceed the principal amount of this
Note, provided that the amount advanced hereunder does not exceed any borrowing
base or other limitation on borrowings by Borrower.

 

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4. Representations and Warranties. When Borrower signs this Amendment, Borrower
represents and warrants to Lender that: (a) there is no event which is, or with
notice or lapse of time or both would be, a default under the Loan Documents
except those events, if any, that have been disclosed in writing to Lender or
waived in writing by Lender, (b) the representations and warranties in the Loan
Documents are true as of the date of this Amendment as if made on the date of
this Amendment, (c) this Amendment does not conflict with any law, agreement, or
obligation by which Borrower is hound, and (d) this Amendment is within
Borrower’s powers, has been duly authorized, and does not conflict with any of
Borrower’s organizational papers.

 

5. Effect of Amendment. Except as provided in this Amendment, all of the terms
and conditions of the Loan Documents shall remain in full force and effect.

 

6. Counterparts. This Amendment may be executed in counterparts, each of which
when so executed shall be deemed an original, but all such counterparts together
shall constitute but one and the same instrument.

 

7. FINAL AGREEMENT. BY SIGNING THIS DOCUMENT EACH PARTY REPRESENTS AND AGREES
THAT: (A) THIS DOCUMENT REPRESENTS THE FINAL AGREEMENT BETWEEN PARTIES WITH
RESPECT TO THE SUBJECT MATTER HEREOF, (B) THIS DOCUMENT SUPERSEDES ANY
COMMITMENT LETTER, TERM SHEET OR OTHER WRITTEN OUTLINE OF TERMS AND CONDITIONS
RELATING TO THE SUBJECT MATTER HEREOF, UNLESS SUCH COMMITMENT LETTER, TERM SHEET
OR OTHER WRITTEN OUTLINE OF TERMS AND CONDITIONS EXPRESSLY PROVIDES TO THE
CONTRARY, (C) THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES, AND
(D) THIS DOCUMENT MAY NOT BE CONTRADICTED BY EVIDENCE OF ANY PRIOR,
CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OR UNDERSTANDINGS OF THE PARTIES.

 

This Amendment is executed as of the date stated at the beginning of this
Amendment.

 

Borrower:

 

Newport Corporation

     

Lender:

 

Bank of America, N.A.

By:   /s/ William R. Abbott       By:  

/s/ Cynthia K. Goodfellow

 

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William R. Abbott,

Vice President-Finance/Treasurer

         

Cynthia K. Goodfellow,

Vice President

 

  By:   /s/ Jeffrey B. Coyne  

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Jeffrey B. Coyne,

Vice President/General Counsel

 

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