Document:

<PAGE>
                                                              EXHIBIT 10.5

                                 ADDENDUM NO. 2

      CONTRACT MANUFACTURING AGREEMENT - LITHOGRAPHY LASER

      This Addendum No. 2 to the Contract Manufacturing Agreement is entered
into as of February 21, 2000, by and between Cymer, Inc., a Nevada corporation
("CYMER USA"), with offices at 16275 Technology Drive, San Diego, CA 92127-1815,
Cymer Japan, Inc., a Japanese corporation and a wholly-owned subsidiary of CYMER
USA ("CJI") with offices at 4-17-8 Minamiyawata, Ichikawa, Chiba 272-0023 Japan,
and Seiko Instruments Inc., a Japanese corporation ("SII"), with offices at 8,
Nakase 1-chome, Mihama-ku, Chiba-shi, Chiba 261-8507 Japan.

      WHEREAS, CYMER USA and SII entered into a Contract Manufacturing Agreement
(the "Agreement") as of August 28, 1992 for the manufacture, by SII, of certain
products designed by CYMER and the sale of such products, by SII, to CYMER only;

      WHEREAS, CYMER USA and SII entered into Addendum No. 1 ("Addendum No. 1")
to the Agreement on February 1, 1996 to clarify the rights and obligations of
the parties in view of changes which have occurred since the Contract
Manufacturing Agreement was first executed; and

      WHEREAS, CYMER USA, CJI and SII desire to enter into this Addendum No. 2
which further amends and modifies the Agreement to provide that CJI will provide
certain materials to SII and SII will, for a fee to be paid by CJI, manufacture,
test and deliver certain products pursuant to the terms and conditions set forth
in this Agreement.

      NOW, THEREFORE, it is hereby agreed to amend and modify the terms of the
Agreement as follows:

1.5   The first sentence of Section 1.5 shall be deleted in its entirety and
restated to read as follows:

      1.5   "MANUFACTURE AND TEST" shall mean the restricted use of CYMER
Patents and Technical Information by SII to allow SII to perform only the
following tasks: (a) perform only the final assembly of the Products; and (b)
using Test Equipment, perform only the necessary Tests to ensure the proper
operation of the assembled Products in accordance with CYMER's Specifications as
defined hereunder.

1.7   Section 1.7 shall be added to the Agreement and shall read as follows:

      1.7   "CYMER" shall, unless otherwise stated, mean CYMER USA and/or CJI,
as appropriate.

2.    The heading to Section 2 of the Agreement shall be deleted in its entirety
and restated to read as follows:

      AGREEMENT TO MANUFACTURE, TEST AND DELIVER PRODUCTS

<PAGE>

2.1   The subheading and first sentence to Section 2.1 of the Agreement shall be
deleted in its entirety and restated to read as follows:

      2.1   MANUFACTURE, TEST AND DELIVER. CYMER permits SII to use CYMER
Technical Information and to perform tasks under CYMER Patents only to the
extent necessary to allow SII to Manufacture and Test Products exclusively for
CJI and to deliver Products exclusively to parties designated by CJI and CJI
agrees to compensate SII for such Manufacture and Testing and delivery pursuant
to the terms and conditions set forth herein. At all times ownership of Products
shall remain with CJI and not with SII.

2.2   The last sentence of Section 2.2 shall be deleted in its entirety and
restated to read as follows:

      This Section notwithstanding, SII shall have the right to continue the
manufacture and sale of HP (High Power) lasers pursuant to the terms of the
Product License and Manufacturing Agreement for HP (High Power) Lasers between
SII and CYMER USA dated August 28, 1992.

4.1   The first sentence of Section 4.1 shall be deleted in its entirety and
restated to read as follows:

      After training of SII personnel and process qualification as described in
Section 3 above, SII shall perform the final assembly and testing of the Product
as ordered by CJI pursuant to Section 5 below.

4.2   The first sentence of Section 4.2 shall be deleted in its entirety and
restated to read as follows:

      CJI shall provide free of charge to SII Proprietary Modules, as well as
subcomponents and parts which constitute the Product, as defined in Section 1.1,
for Manufacture and Test by SII.

4.4   Section 4.4 shall be deleted in its entirety and restated to read as
follows:

      4.4   PRODUCTION CONTROL REPORTING. In accordance with the CYMER/Seiko
Procedures Manual, the requirements and terms of which are included as part of
this Agreement, SII shall send CYMER USA and CJI monthly updates reporting the
status of all Products previously ordered by CJI and currently in progress.

4.6   The first, second, third, fifth, sixth and seventh sentences in Section
4.6 shall be deleted in their entirety.

5.    The heading for Section 5 of the Agreement shall be deleted in its
entirety and restated to read as follows:

      MANUFACTURING FEE AND FORECASTS

                                     -2-
<PAGE>

5.1   The first paragraph of Section 5.1 shall be deleted in its entirety and
restated to read as follows:

      5.1   MANUFACTURING FEE. The manufacturing fee for all Products from the
date of this Agreement until April 1, 2001, shall be those prices calculated in
Attachment A and shall be paid to SII in Japanese Yen. CJI's orders for Products
Manufactured and Tested by SII shall be requested through a CJI manufacturing
order, a copy of which is provided as part of Attachment B, and whose terms
shall be incorporated as part of this Agreement. After April 1, 2001, the
Parties shall use their best efforts to negotiate the manufacturing fee for
Products for the subsequent year. The Parties shall use their best efforts to
determine the Product manufacturing fee for the subsequent year by December 31
of the preceding year (i.e., December 31, 2000 shall be the deadline for
determining Product manufacturing fees for the annual period April 1, 2001 to
March 31, 2002).

5.1   The first sentence of the second paragraph of Section 5.1 shall be deleted
in its entirety and restated to read as follows:

      Quarterly adjustments may be made to Product manufacturing fees during any
period based upon CYMER's cycle time adjustments which are substantiated by the
joint CYMER/SII quarterly review process.

5.2   The second paragraph of Section 5.2 shall be deleted in its entirety and
restated to read as follows:

      Subject to orders for Product permanently residing in Japan, the
production orders to SII will be a minimum of (i) thirty percent (30%) of the
combined CYMER and SII production during SII's first year of production, (ii)
forty percent (40%) of the combined CYMER and SII production during SII's second
year of production, and (iii) fifty percent (50%) of the combined CYMER and SII
production thereafter; provided, however, that in all events SII's production,
shall not exceed the aggregate sales during the respective period for Product
permanently residing in Japan. Upon thirty (30) days notice to CYMER, SII shall
have the right to inspect the sales and manufacturing records of CYMER during
normal business hours for the purpose of verifying CYMER's compliance with
minimum order requirements.

5.3   The subheading of Section 5.3 shall be deleted in its entirety and
restated to read as follows:

      FORECASTS AND MANUFACTURING OBLIGATIONS.

5.3   All references to CYMER in Section 5.3 shall be deleted and replaced with
CJI.

5.4   Section 5.4 shall be deleted in its entirety and restated to read as
follows:

      5.4   SUPPLY. During the term of this Agreement, SII will use its best
efforts to accept and fulfill all CJI manufacturing orders for Products up to
the quantities as set forth in CJI's current forecast, with a timeliness
substantially equivalent to CJI's then current response time for customer orders
and shall also use its best efforts to fulfill CJI's orders for additional
Products.

                                     -3-
<PAGE>

5.5   Section 5.5 shall be deleted in its entirety and restated to read as
follows:

      5.5   ORDER AND ACCEPTANCE. All orders for Products shall be initiated by
written manufacturing orders sent by CJI to SII by facsimile or courier and
requesting a delivery date during the term of this Agreement which is not
earlier than ninety (90) days after the date of the order. All orders shall be
confirmed or rejected in writing by SII within five (5) SII business days after
receipt by SII. Orders shall be made by manufacturing orders, which shall set
forth the requested model number, delivery date, quantity, manufacturing fee and
delivery destinations of the ordered Products. Except for such items, the terms
and conditions of such manufacturing orders will be of no force or effect.

5.6   Section 5.6 shall be deleted in its entirety and restated to read as
follows:

      5.6   TRANSPORTATION AND RISK OF LOSS. All shipments of materials and/or
Products between the Parties shall be at the expense of CYMER, and risk of loss
or damage to materials and/or Products shall be borne by CYMER at all times.

6.    Section 6 shall be deleted in its entirety and restated to read as
follows:

      MANUFACTURING TERMS AND CONDITIONS

      6.1   MANUFACTURING ORDERS. Any manufacturing orders placed by CJI
pursuant to this Agreement that are accepted by SII shall be subject to this
following terms: (i) payment to SII by CJI net sixty (60) days after delivery of
Products to third parties designated exclusively by CJI; and (ii) payment by CJI
of sales, use, excise or other similar tax applicable to the sale of Product.
The form of payment shall be a 90 day draft by CJI.

7.2   The first paragraph of Section 7.2 shall be deleted in its entirety and
restated to read as follows:

      7.2   WARRANTY. SII shall warrant that each Product delivered to third
parties designated exclusively by CJI meets, and shall have been manufactured in
accordance with the Specifications. Additionally, SII shall warrant for the
period set forth below that the Product shall be free from defects in material
and workmanship ("Defects"), except for defects arising from SII's compliance
with the Specifications, or any materials or equipment supplied by CYMER. The
warranty period shall be one year after delivery to a third-party designated
exclusively by CJI. The parties shall enter into good faith negotiations to
amend the warranty period upon the reasonable request of one party. To the
extent that a customer of CYMER's agrees to a shorter warranty period from
CYMER, CYMER shall reduce the required warranty period from SII for the
respective customer by the same amount of time. All at SII's expense, CYMER
shall be entitled, within forty-five (45) days after expiration of the Warranty
Period, to return to SII any Product which has Defects directly traceable to SII
and not defects arising from SII's compliance with the specifications or
materials or equipment supplied by CYMER, and to require SII to provide, at
CYMER's option, either a refund, credit or replacement Product within forty-five
(45) days. Any Product returned for replacement in accordance with this Section
shall be refurbished and delivered as instructed by CJI in accordance

                                     -4-
<PAGE>

with this Agreement. Should the Parties mutually agree to have the assembly of
certain Level 3 Proprietary Modules included as part of the definition of
Manufacture and Test, the warranty terms for such assembly shall be included in
the written addendum evidencing the Parties agreement to extend the definition
to include the aforementioned assembly work. Under no circumstances shall title
to any returned Product be deemed to pass to SII. All returned Products shall
continue to be construed and interpreted as "Products" as defined in this
Agreement.

8.    Section 8 shall be deleted in its entirety and restated to read as
follows:

      CYMER USA shall retain ownership of all designs, process technology, trade
secrets, patents, copyrights, software, masked works, tooling, product and
testing information, Technical Information, and Specifications, as well as all
other information, data and materials related to the Product, including
Proprietary Modules and all other subcomponents and parts which constitute the
Product, which are provided by CYMER to SII for the purposes of the Manufacture
and Testing by SII, including all improvements, modifications, enhancements and
refinements to the Product ("Product Improvements"), which shall be deemed under
this Agreement to be proprietary information and shall be considered CYMER USA's
confidential information (as defined below).

      SII has covenanted that it will not attempt to reverse-engineer,
disassemble, de-compile, or take any other action to determine the structure,
design, or method of operation of the component parts, devices, Proprietary
Modules, hardware, firmware or software (either separate or embedded and made a
part of a component part, device or module) supplied to SII for final assembly
of the Product, or contained in or used with the Test Equipment used for final
testing of the Product. If SII discovers an improvement in the Manufacture and
Test process, SII will notify CYMER by submitting an ECO describing the proposed
improvement. CYMER shall review the ECO and determine if the proposed change is
to be included in the Product. If CYMER authorizes the ECO, SII shall grant
CYMER USA and CJI the nonexclusive, perpetual, world-wide, irrevocable right to
make, have made, use, and/or sell the improvement in all of CYMER's product line
listed in Exhibit "A". If CYMER and SII agree, by a mutually executed addendum,
to extend the definition of Manufacture and Test to include the assembly by SII
of certain (Level 3) Proprietary Modules, the addendum shall provide to SII the
right to request additional information and design details related to said
Modules, necessary to enable SII to perform the assembly work.

         If SII determines that certain improvements could be made to the Level
3 Modules ("Product Improvement" or "Product Improvements" or "Process and
Product Improvements"), SII will immediately notify CYMER by submitting an ECO
describing the proposed Product Improvement. CYMER shall review the ECO and
determine the feasibility of utilizing the proposed change in the Product. If
CYMER determines that the Product Improvement is of value, CYMER and SII shall
enter into a separate joint development agreement to allow the Parties to test
the viability of the proposed Product Improvement. The rights to any such
Product Improvement to any Level 3 Modules shall be dependent upon the specific
module assembled by SII, and shall be negotiated between the Parties prior to
SII commencing any assembly work incorporating the change into the Product.
Under any such joint development agreement, CYMER USA and CJI shall be granted
at

                                     -5-
<PAGE>

least the exclusive perpetual, world-wide, irrevocable right to make, have made,
use, and/or sell the Product Improvement in all CYMER Products in the field of
excimer laser systems.

      Likewise, CYMER shall inform SII of any product improvements it may
incorporate into the Product, to the extent necessary to allow SII to complete
the manufacture and test of the Product as provided in this Agreement.

      Process and Product Improvements proposed by SII for ECO implementation by
CYMER remain the property of SII subject to license to CYMER as stated in this
Agreement.

11.3  Section 11.3 shall be deleted in its entirety and shall be restated to
read as follows:

      11.3  TERMINATION FOR INSOLVENCY. This Agreement shall terminate upon
written notice by the other party in the event of (i) the institution by or
against SII or CYMER USA of insolvency, receivership or bankruptcy proceedings
or any other proceedings for the settlement of SII's or CYMER USA's debts, (ii)
upon SII's or CYMER USA's making an assignment for the benefit of creditors, or
(iii) upon SII's or CYMER USA's dissolution or ceasing to do business. All the
rights and obligations of CJI under this Agreement shall automatically be
assumed by CYMER USA in the event of (i) the institution by or against CJI of
insolvency, receivership or bankruptcy proceedings or any other proceedings for
the settlement of CJI's debts, (ii) upon CJI's making an assignment for the
benefit of creditors, or (iii) upon CJI's dissolution or ceasing to do business.

19.   The last two sentences of Section 19 shall be deleted in their entirety
and restated to read as follows:

      The facsimile number for notices to SII shall be 043-211-8724. The
facsimile number for notices to CYMER shall be (858) 385-7100.

20.   The first sentence of Section 20 shall be deleted in its entirety and
restated to read as follows:

      With the exception of the relationship between CYMER USA and CJI, the
relationship of the parties to this Agreement is that of arms-length
negotiators, and the parties expressly agree that neither party is the agent of
the other and that neither party has any express or implied authority to act on
behalf of or make any representations whatsoever on behalf of each other.

21.   The second to last sentence of Section 21 shall be deleted in its entirety
and restated to read as follows:

      No modification or waiver of any provision of this Agreement shall be
effective unless it is in writing and signed by each party.

                                     -6-
<PAGE>

      IN WITNESS WHEREOF, the parties hereto have caused this ADDENDUM NO. 2 to
the CONTRACT MANUFACTURE AGREEMENT - LITHOGRAPHY LASER to be executed by their
authorized representatives.

CYMER, INC.                               SEIKO INSTRUMENTS INC.
a Nevada corporation                      Scientific Instruments Division,
                                          a Japanese corporation

By:    /s/ William A. Angus, III          By:    /s/ Yoshihiko Teramoto
   --------------------------------          --------------------------------
Name:  William A. Angus, III              Name:  Yoshihiko Teramoto
Title: Senior Vice President,             Title: Division Manager
       Chief Financial Officer

CYMER JAPAN, INC.:
a Japanese corporation

By:    /s/ Pascal Didier
   --------------------------------
Name:  Pascal Didier
Title: President

<PAGE>

               SEIKO INSTRUMENTS CONTRACT MANUFACTURING AGREEMENT
                        MANUFACTURING FEE COMPUTATION
                              DECEMBER, 1999

     The annual manufacturing fee per unit ("P") shall be determined based on
Fig. A, below.

                                    FIG. A

<TABLE>
<CAPTION>

--------------------------------------------------------------------------------------------------------------------

   FISCAL YEAR (APRIL TO MARCH) ORDERS TO SII:             $ FEE                 EXHCHANGE              P= * FEE
      N=NUMBER OF UNITS ORDERED BY CYMER                  per UNIT                 RATE                 per UNIT
-------------------------------------------------     ----------------        ---------------       ----------------
           <S>                                         <C>                         <C>               <C>
              N LESS THAN 60                           $  59,847                   110               JPY  6,583,170

            60 LESS THAN OR EQUAL TO N LESS THAN 80    $  55,000                   110               JPY  6,050,000

            80 LESS THAN OR EQUAL TO N LESS THAN 100   $  45,000                   110               JPY  4,950,000

           100 UNITS LESS THAN=N                       $  40,000                   110               JPY  4,400,000
---------------------------------------------------------------------------------------------------------------------

</TABLE>

The manufacturing fee per unit for the first three Quarters of any year
(April to December) shall be determined based on the cumulative year-to-date
total number of units through that Quarter, in accordance with Fig. B, below.
The unit price in the final Quarter of any year (January to March) shall be
determined according to the following explanation: First computing the annual
manufacturing fee "P" based on cumulative year-to-date units (Fig. A, above).
The fee so computed is then to be reduced by all fees paid for the prior
three Quarters, and then divided by actual Q4 units to determine the Q4 unit
manufacturing fee "P4".

                                    FIG. B
<TABLE>
<CAPTION>

-------------------------------------------------------------------------------------------------------------------------------

Q1 (Apr-Jun)               P1          Q2 (Jul-Sep)             P2          Q3 (Oct-Dec)            P3          Q4 (Jan-Mar) P4
------------          ------------     ------------         ----------      ------------        -----------     ---------------
<S>                     <C>            <C>                  <C>            <C>                   <C>
NTD LESS THAN 15        6,583,170      NTD LESS THAN 30      6,583,170     NTD LESS THAN 45       6,583,170         Based on
15 LESS THAN OR EQUAL                  30 LESS THAN OR EQUAL               45 LESS THAN OR EQUAL                Fig. A. and the
  TO NTD LESS THAN 20   6,050,000       TO NTD LESS THAN 40  6,050,000       TO NTD LESS THAN 60  6,050,000
20 LESS THAN OR EQUAL                  40 LESS THAN OR EQUAL               60 LESS THAN OR EQUAL                  explanation
  TO NTD LESS THAN 25   4,950,000       TO NTD LESS THAN 50  4,950,000        TO NTD LESS THAN 75 4,950,000            above
25 LESS THAN OR EQUAL   4,400,000      50 LESS THAN OR       4,400,000     75 LESS THAN OR        4,4000,000
  TO NTD                                  EQUAL TO NTD                        EQUAL TO NTD
----------------------------------     --------------------------------      --------------------------------   ---------------
-------------------------------------------------------------------------------------------------------------------------------
</TABLE>

* Where NTD = Cumulative year-to-date units ordered by CJI, "Q1" "Q2" "Q3"
and "Q4" refer to fiscal Quarters, N and NTD include ELS-5000 and ELS-6000.

P1 = Manufacturing fee per unit for Quarter 1, P2 = Manufacturing fee per unit
for Quarter 2.

P3 = Manufacturing fee per unit for Quarter 3, and P4 = Manufacturing fee per
unit for Quarter 4.

The annual manufacturing fee per unit ("P") and the quarter manufacturing fee
per unit ("P1""P2""P3") of ELS-6000 shall be calculated by each "P","P1","P2"
or "P3" for ELS-5000 (Fig. A and Fig. B above) times the Multiplication
Factor. The Multiplication Factor shall be mutually agreed by the start of
manufacture of ELS-6000 units at SII.

                                Attachment "A"<PAGE>
                                                                   EXHIBIT 10.6

                 ---------------------------------------------

                          AMENDMENT TO LOAN AGREEMENT

BORROWERS:          CYMER, INC. AND CYMER JAPAN, INC.

DATED AS OF:        FEBRUARY 4, 1999

     THIS AMENDMENT TO LOAN AGREEMENT is entered into between SILICON VALLEY
BANK ("Silicon") and BANK OF HAWAII ("BOH"), on the one side, Cymer, Inc.
("Cymer") and Cymer Japan, Inc. ("Cymer Japan") on the other side.

     The Parties agree to amend the Loan Agreement between them, dated
December 8, 1997, as amended from time to time (the "Loan Agreement"), as
follows, effective as of the date hereof, unless otherwise stated below.
(Capitalized terms used but not defined in this Amendment shall have the
meanings set forth in the Loan Agreement.)

     1.     REVISED DEFINITIONS. Section 1.1 of the Loan Agreement is hereby
amended by replacing the definitions of "Committed Revolving Line," "Optional
Currency Rate," "LIBOR Based Rate" and "Revolving Maturity Date" with the
following definitions, respectively, PROVIDED that the date of effectiveness
of the amendment to Optional Currency Rate shall be as of February 9, 1999:

     "COMMITTED REVOLVING LINE" means Thirty Million Dollars ($30,000,000).

     "OPTIONAL CURRENCY RATE" means, with respect to any Interest Period
     regarding the Optional Currency Advance, 200 basis points PLUS the
     rate per annum equal to the Euro Yen Tokyo Inter-bank Offered Rate
     as announced by the Federation of Bankers Association of Japan two
     (2) Business Days before the first day of such Interest Period for
     a period approximately equal to such Interest Period and in an
     amount approximately equal to such Advance, or, in the absence
     thereof, the rate per annum determined by the Servicing Agent to be
     the per annum rate or interest at which deposits in Japanese Yen
     are offered to the Servicing Agent in the Tokyo inter-bank market
     in which the Servicing Agent customarily participates at 11:00 A.M.
     (local time in such interbank market) two (2) Business Days before
     the first day of such Interest Period for a period approximately
     equal to such Interest Period and in an amount approximately equal
     to the amount of such Advance.

     "LIBOR BASED RATE" means the LIBOR Interest Rate for an identified
     Interest Period plus 200 basis points.

     "REVOLVING MATURITY DATE" means February 3, 2000, as such date may
     from time to time be extended by lenders in their sole discretion
     pursuant to this agreement."

     2.     NEW DEFINITION. Section 1.1 of the Loan Agreement is hereby
amended by adding the definition of "February 1999 Amendment" thereto:

     "FEBRUARY 1999 AMENDMENT" means the Amendment to Loan Agreement
     dated February 4, 1999 between Silicon and BOH, on the one side,
     and Cymer and Cymer Japan, on the other side."

     3.     SECTION 2.1.1A. Section 2.1.1A of the Loan Agreement is hereby to
read as follows:

                                    -1-

<PAGE>

        SILICON VALLEY BANK                  AMENDMENT TO LOAN AGREEMENT
        -----------------------------------------------------------------

     "2.1.1.A  OPTIONAL CURRENCY ADVANCE.

     Substantially concurrently with the execution and delivery of the
     April 1998 Amendment, an Optional Currency Advance in the Dollar
     Equivalent of Fifteen Million Dollars ($15,000,000) shall be made
     to Cymer Japan, PROVIDED, HOWEVER, that it is understood the Dollar
     Equivalent of the principal amount of such Optional Currency
     Advance will fluctuate over time due to currency variations,
     PROVIDED, FURTHER, in connection with the February 1999 Amendment
     it is the intention of the Lenders to have increased the
     availability of the Dollar Equivalent of the Optional Currency
     Advance by $5,000,000 to the above-referenced $15,000,000 amount,
     even though, due to the currency fluctuations, the Dollar
     Equivalent of the Optional Currency Advance in effect prior to the
     February 1999 Amendment was in excess of the then stated credit
     limit amount of the Optional Currency Advance. Accordingly, the
     parties hereto hereby agree that if the Dollar Equivalent of the
     principal amount of such Optional Currency Advance exceeds Fifteen
     Million Dollars ($15,000,000) at any time, including, without
     limitation, upon the making of the incremental $5,000,000 Optional
     Currency Advance in connection with the February 1999 Amendment,
     such an occurrence shall not constitute an Event of Default nor
     prevent the making of such incremental advance as contemplated in
     the previous sentence, as long as the aggregate principal amount of
     all Revolving Advances together with the Dollar Equivalent of the
     aggregate principal amount of the Optional Currency Advance does
     not exceed Twenty Million Dollars ($20,000,000) after the making of
     any and all Advances. The Optional Currency Advance shall be made
     by each of the Lenders in an amount up to its respective Commitment
     Percentage of Revolving Advances, and BOH shall be the agent for
     both Lenders in connection with the making of such Advance.
     Repayments of the Optional Currency Advance made in such Optional
     Currency shall be made only at the branch of BOH in the country of
     such Optional Currency."

     4.     FOREIGN EXCHANGE RESERVE MODIFICATION. The "Foreign Exchange
Reserve" is hereby amended to be the following amounts on any given day (the
"Determination Date"); on all outstanding Exchange Contracts on which
delivery is to be effected or settlement allowed, 20% of the gross amount of
the Exchange Contracts. Further, the "Contract Limit" as set forth in Section
2.1.3(a) of the Loan Agreement is hereby amended to be $50,000,000.

     5.     NO UNUSED LINE FEE. Section 2.5.4 of the Loan Agreement regarding
an unused line fee payable by the Borrower is hereby deleted in its entirety.

     6.     MODIFICATION FEE. Borrower shall to the Lenders a fee of $12,500
in connection herewith, which shall be addition to interest and to all other
amounts payable under the Loan Agreement and which shall not be refundable.

     7.     FINANCIAL COVENANTS. Section 6.8 of the Loan Agreement is hereby
amended, respectively, to read as follows:

     "6.8 TANGIBLE NET WORTH. Cymer, Inc. shall maintain, on a
     consolidated basis, as of the last day of each calendar quarter
     a Tangible Net Worth of not less than Two Hundred Sixty Million
     Dollars ($260,000,000) PLUS Fifty Percent (50%) of Borrower's
     quarterly net income (after taxes) (with no subtraction for losses)
     LESS the amount of the Borrower's treasury shares up to $25,000,000
     for such shares that are purchased on and after December 31, 1998."

     8.     QUICK RATIO. The Loan Agreement is hereby amended to add a new
section entitled "6.9A Quick Ratio" that replaces Section 6.9 of the Loan
Agreement, and which shall read as follows:

                                  -2-

<PAGE>

        SILICON VALLEY BANK                  AMENDMENT TO LOAN AGREEMENT
        -----------------------------------------------------------------

     "6.9A QUICK RATIO. Cymer, Inc. shall maintain, on a consolidated
     basis, as of the last day of each calendar quarter, a ratio of
     Quick Assets to Current Liabilities of at least 2.00 to 1.0. For
     purposes of the foregoing, however, Current Liabilities shall not
     include deferred revenues. "Quick Assets" means, as of any
     applicable date, the consolidated cash, cash equivalents, accounts
     receivable and long term marketable securities of Borrower
     determined in accordance with GAAP. "Current Liabilities" means, as
     of any applicable date, all amounts that should, in accordance with
     GAAP, be included as current liabilities on the consolidated
     balance sheet of Borrower and its Subsidiaries, as at such date,
     plus, to the extent not already included therein, all outstanding
     credit extensions made under this Agreement, including all
     Indebtedness that is payable upon demand or within one year from
     the date of determination thereof unless such Indebtedness is
     renewable or extendable at the option of Borrower or any Subsidiary
     to a date more than one year from the date of determination, but
     excluding Subordinated Debt." In connection with the calculation of
     the Quick Ratio, the assets and liabilities of Borrower associated
     with the Foreign Exchange Contracts shall be included therein on a
     Net Basis.

     9.     PROFITABILITY. The Loan Agreement is hereby amended to add a new
section entitled "6.9B Profitability" that immediately follows Section 6.9A
of the Loan Agreement, and which shall read as follows:

     6.9B   PROFITABILITY. Other than as stated below, Borrower shall not
     incur a loss (after taxes) in any fiscal quarter in excess of
     $5,000,000, PROVIDED, HOWEVER, regardless of the foregoing, Borrower
     shall not incur cumulative losses (after taxes) during the period of
     Borrower's 1999 fiscal year in excess of $12,500,000. Further, for the
     fiscal quarter ending December 31, 1999 and in each fiscal quarter
     thereafter, Borrower shall not incur any losses (after taxes).

     10.     SECTION 8.2.1 MODIFICATION. Section 3.2.1 of the Loan Agreement is
hereby amended in its entirety to read as follows:

     "8.2.1 If such Borrower fails to perform any obligation under Sections
     6.7, 6.8, 6.9A, 6.9B, 6.10, 6.11 or 6.12 or violates any of the
     covenants contained in Article 7 of this Agreement, or"

                   [text continues on the following page]

                                  -3-
<PAGE>

             SILICON VALLEY BANK                 AMENDMENT TO LOAN AGREEMENT
        -----------------------------------------------------------------------

     11.    SCHEDULE TO LOAN AGREEMENT. The Schedule to the Loan Agreement is
hereby amended to read as follows:

                                  "SCHEDULE

                                      TO

                          LOAN AND SECURITY AGREEMENT

                                  COMMITMENTS"

                           COMMITTED REVOLVING LINE;

<TABLE>
<CAPTION>

LENDER                             COMMITMENT            COMMITMENT PERCENTAGE
<S>                                <C>                   <C>
SILICON VALLEY BANK                $15,000,000                    50%
BANK OF HAWAII                     $15,000,000                    50%

</TABLE>

     12.    REPRESENTATIONS TRUE. Borrower represents and warrants to Bank that
all representations and warranties set forth in the Loan Agreement are true
and correct.

     13.    GENERAL PROVISIONS. This Amendment, the Loan Agreement, any prior
written amendments to the Loan Agreement signed by Bank and the Borrower, and
the other written documents and agreements between Bank and the Borrower set
forth in full all of the representations and agreements of the parties with
respect to the subject matter hereof and supersede all prior discussions,
representations, agreements and understandings between the parties with
respect to the subject hereof. Except as herein expressly amended, all of the
terms and provisions of the Loan Agreement, and all other documents and
agreements between Bank and the Borrower shall continue in full force and
effect and the same are hereby ratified and

                                     -4-
<PAGE>

             SILICON VALLEY BANK                 AMENDMENT TO LOAN AGREEMENT
        -----------------------------------------------------------------------

confirmed. This Agreement and Consent may be executed in any number of
counterparts, which when taken together shall constitute one and the same
agreement.

CYMER, INC.                            SILICON VALLEY BANK

BY  /s/ Robert P. Akins                BY  /s/ John W. Otterson
  --------------------------------       ------------------------------------
    PRESIDENT OR VICE PRESIDENT        TITLE    SENIOR VICE PRESIDENT
                                            ---------------------------------

CYMER JAPAN, INC.                      BANK OF HAWAII

BY  /s/ William A. Angus, III          BY
  --------------------------------       ------------------------------------
    PRESIDENT OR VICE PRESIDENT        TITLE
                                            ---------------------------------

                                     -5-

<PAGE>

                 ---------------------------------------------

                          AMENDMENT TO LOAN AGREEMENT

BORROWERS:          CYMER, INC.
                    CYMER JAPAN, INC.

DATED AS OF:        SEPTEMBER 22, 1999

     THIS AMENDMENT TO LOAN AGREEMENT is entered into between SILICON VALLEY
BANK ("Silicon") and BANK OF HAWAII ("BOH"), on the one side, Cymer, Inc.
("Cymer") and Cymer Japan, Inc. ("Cymer Japan") on the other side.

     The Parties agree to amend the Loan Agreement between them, dated
December 8, 1997, as amended from time to time (the "Loan Agreement"), as
follows, effective as of the date hereof, unless otherwise stated below.
(Capitalized terms used but not defined in this Amendment shall have the
meanings set forth in the Loan Agreement.)

     1.     MODIFICATION of Section 2.1.1 sECTION 2.1.1 of the Loan Agreement is
hereby in its entirety to read as follows:

            "2.1.1 THE REVOLVING ADVANCES. Subject to and upon the terms and
     conditions hereof, and in reliance upon the representations and
     warranties of the Borrowers set forth herein, each Lender severally
     agrees to make its Commitment Percentage of Revolving Advances to Cymer
     up to the aggregate amount of $3,500,000 for both Lenders from time to
     time until the close of business on the Revolving Maturity Date, in such
     sums as Cymer may request, PROVIDED that the aggregate principal amount
     of all Revolving Advances and the Dollar Equivalent of the Optional
     Currency Advances at any one time outstanding shall not exceed the
     Committed Revolving Time minus the Foreign Exchange Reserve. Subject to
     the terms and conditions of this Agreement and in reliance upon the
     representations and warranties set forth herein, amounts borrowed
     pursuant to this Section 2.1.1 may be repaid and reborrowed at any time
     during the term of this Agreement. The minimum amount of a Prime Based
     Rate Revolving Advance is $25,000. The minimum amount of a LIBOR Based
     Rate Revolving Advance is $500,000, and loan amounts greater than such
     sum are required to be in integral multiples of $50,000 in excess
     thereof.

            Cymer promises to pay to Servicing Agent for the account of each
     Lender, in lawful money of the United States of America, the aggregate
     unpaid principal amount of all Revolving Advances made by Servicing
     Agent and Lenders to Borrower. Borrower shall also pay interest on the
     aggregate unpaid principal amount of such Advances at the rates and in
     accordance with the terms hereof.

            The Committed Revolving Line shall terminate on the Revolving
     Maturity Date, at which time all Revolving Advances under this Section
     2.1.1, all Optional Currency Advances, and other amounts due under this
     Agreement (except as otherwise expressly specified herein) shall be
     immediately due and payable."

     2.     MODIFICATION OF FOREIGN EXCHANGE CONTRACT LIMIT. The "Contract
Limit", as set forth in Section 2.1.3(a) of the Loan Agreement, is hereby
amended to be $57,500,000.

                                   -1-
<PAGE>
               Silicon Valley Bank           Amendment to Loan Agreement
            ---------------------------------------------------------------

     3.     REPRESENTATIONS TRUE. Borrower represents and warrants to Bank
that all representations and warranties set forth in the Loan Agreement are
true and correct.

     4.     GENERAL PROVISIONS. This Amendment, the Loan Agreement, any prior
written amendents to the Loan Agreement signed by Bank and the Borrower, and
the other written documents and agreements between Bank and the Borrower set
forth in full all of the representations and agreements of the parties with
respect to the subject matter hereof and supersede all prior discussions,
representation, agreements and understandings between the parties with repect
to the subject hereof. Except as herein expressly amended, all of the terms
and provisions of the Loan Agreement, and all other documents and agreements
between Bank and Borrower shall continue in full force and effect and the
same are hereby ratified and confirmed. This Agreement and Consent may be
executed in any number of counterparts, which when taken together shall
constitute one and the same agreement.

CYMER, INC.                                SILICON VALLEY BANK

By /s/ Robert P. Akins                     By /s/ John W. Otterson
   ---------------------------                -----------------------------
   President or Vice President             Title  Senior Vice President
                                                -----------------------------

CYMER JAPAN, INC.                          BANK OF HAWAII

By /s/ William A. Angus, III               By /s/ Scott R. Nahme
   ----------------------------               ------------------------------
   President or Vice President             Title  Vice President
                                                ------------------------------

                                  -2-

<PAGE>

          ---------------------------------------------------------

                          AMENDMENT TO LOAN AGREEMENT

BORROWERS:     CYMER, INC. AND CYMER JAPAN, INC.

DATED AS OF:   FEBRUARY 4, 2000

     THIS AMENDMENT TO LOAN AGREEMENT is entered into between SILICON VALLEY
BANK ("Silicon") and BANK OF HAWAII ("BOH"), on the one side, Cymer, Inc.
("Cymer") and Cymer Japan, Inc. ("Cymer Japan"), on the other side.

     The Parties agree to amend the Loan Agreement between them, dated
December 8, 1997, as amended from time to time (the "Loan Agreement"), as
follows, effective as of the date hereof, (Capitalized terms used but not
defined in this Amendment, shall have the meanings set forth in the Loan
Agreement.)

     1.     REVISED DEFINITIONS. Section  1.1 of the Loan Agreement is hereby
amended by replacing the definitions of "Committed Revolving Line" and
"Revolving Maturity Date" with the following definitions, respectively:

     "COMMITTED REVOLVING LINE" means Forty Million Dollars ($40,000,000).

     "REVOLVING MATURITY DATE" means February 3, 2001, as such date may
     from time to time be extended by lenders in their sole discretion
     pursuant to this agreement."

     2.     MODIFICATION OF SECTION 2.1.1. Section 2.1.1 of the Loan
Agreement is hereby deleted in its entirety and replaced with the following:

          "2.1.1 OPTIONAL CURRENCY REVOLVING ADVANCES. Subject to and
     upon the terms and conditions hereof, and in reliance upon the
     representations and warranties of the Borrowers set forth herein,
     each Lender severally agrees to make its Commitment Percentage of
     Revolving Advances consisting of Optional Currency Advances to
     Cymer up to the aggregate amount of the Dollar Equivalent of
     $20,000,000 for both Lenders from time to time until the close of
     business on the Revolving Maturity Date, in such sums as Cymer may
     request, PROVIDED, FURTHER, that the aggregate principal amount of
     the Dollar Equivalent of the Optional Currency Advances at any one
     time outstanding shall not exceed the Committed Revolving Line
     minus the Foreign Exchange Reserve.

     Each Optional Currency Advance shall be made by each of the Lenders
     in an amount up to its respective Commitment Percentage of
     Revolving Advances, and BOH shall be the agent for both Lenders in
     connection with the making of such Advance. Repayments of the
     Optional Currency Advance are to made in such Optional Currency and
     shall be made only at the branch of BOH in the country of such
     Optional Currency.

     All Optional Currency Advances shall bear interest on the average
     Daily Balance thereof at the Optional Currency Rate. All interest
     relating to the Optional Currency Rate chargeable under the Loan
     Documents shall be computed on the basis of a three hundred

                                     -1-
<PAGE>

            SILICON VALLEY BANK            AMENDMENT TO LOAN AGREEMENT
        -----------------------------------------------------------------

     sixty (360) day year for the actual number of days elapsed, except
     where the law or commercial custom in the country of the Optional
     Currency requires otherwise.

     The Committed Revolving Line shall terminate on the Revolving
     Maturity Date, at which time all Optional Currency Advances, and
     all other amounts due under this Agreement (except as otherwise
     expressly specified herein) shall be immediately due and payable."

     3.     SECTION 2.1.1A. Section 2.1.1A of the Loan Agreement is hereby
deleted on its entirety and shall be amended to read as follows:

     "2.1.1.A [Reserved]

     4.  REVISED SECTION 2.1.3(a) Subsection (a) of 2.1.3 of the Loan
Agreement is hereby amended to read as follows:

     "(a)     Subject to the terms of this Agreement, either Borrower,
     on a joint basis, may enter into foreign exchange contracts (the
     "Exchange Contracts") not to exceed an aggregate Dollar Equivalent
     amount of $100,000,000 (the "Contract Limit"), pursuant to which
     Lenders shall sell to or purchase from Borrower foreign currency on
     a spot or future basis. A Borrower shall not request any Exchange
     Contracts at any time a Default or an Event of Default has occurred
     and is continuing. All Exchange Contracts must provide for delivery
     of settlement on or before 365 days past the then applicable
     Revolving Maturity Date. The amount available under the Committed
     Revolving Line at any time shall be reduced by the following amounts
     (the "Foreign Exchange Reserve") on any given day (the "Determination
     Date"); on all outstanding Exchange Contracts on which delivery is to be
     effected or settlement allowed, 20% of the gross amount of the
     Exchange Contracts. If on the Revolving Maturity Date, or on any
     earlier effective date of termination, there are any outstanding
     Exchange Contracts, then on such date Borrower shall provide cash
     collateral in an amount equal to the Foreign Exchange Reserve, to
     secure all of the Obligations relating to said Exchange Contracts
     on the Lenders' standard form cash pledge agreement."

     5.     TANGIBLE NET WORTH FINANCIAL COVENANT. Section 6.8 of the Loan
Agreement is hereby amended to read as follows:

     "6.8     TANGIBLE NET WORTH. Cymer, Inc. shall maintain, on a
     consolidated basis, as of the last day of each calendar quarter, a
     Tangible Net Worth of not less than Two Hundred Seventy-Five
     Million Dollars ($275,000,000) PLUS Fifty Percent (50%) of
     Borrower's quarterly net income (after taxes) (with no subtraction
     for losses) LESS the amount of the Borrower's treasury shares up to
     $25,000,000 for such shares that are purchased on and after
     December 31, 1998."

     6.     PROFITABILITY. Section 6.9B of the Loan Agreement is hereby
amended to read as follows:

     "6.9B     PROFITABILITY. Borrower shall not incur a loss (after
     taxes) in any fiscal quarter.

                                     -2-
<PAGE>

             SILICON VALLEY BANK                 AMENDMENT TO LOAN AGREEMENT
        -----------------------------------------------------------------------

                        [text continues on the next page]

                                     -3-
<PAGE>

             SILICON VALLEY BANK                 AMENDMENT TO LOAN AGREEMENT
        -----------------------------------------------------------------------

     7.  SCHEDULE TO LOAN AGREEMENT. The Schedule to the Loan Agreement is
hereby amended to read as follows:

                                  "SCHEDULE

                                      TO

                          LOAN AND SECURITY AGREEMENT

                                  COMMITMENTS"

                           COMMITTED REVOLVING LINE:

<TABLE>
<CAPTION>

LENDER                             COMMITMENT            COMMITMENT PERCENTAGE
<S>                                <C>                   <C>
SILICON VALLEY BANK                $20,000,000                    50%
BANK OF HAWAII                     $20,000,000                    50%

</TABLE>

     8.     MODIFICATION FEE. Borrower shall to the Lenders a fee of $100,000
in connection herewith, which shall be in addition to interest and to all
other amounts payable under the Loan Agreement and which shall not be
refundable.

     9.     REPRESENTATIONS TRUE. Borrower represents and warrants to Bank
that all representations and warranties set forth in the Loan Agreement are
true and correct.

     10.    GENERAL PROVISIONS.  This Amendment, the Loan Agreement, any
prior written amendments to the Loan Agreement signed by Bank and Borrower,
and the other written documents and agreements between Bank and Borrower set
forth in full all of the representations and agreements of the parties with
respect to the subject matter hereof and supersede all prior discussions,
representations, agreements and understandings between the parties with
respect to the subject hereof. Except as herein expressly amended, all of the
terms and provisions of the Loan Agreement, and all other documents and
agreements between Bank

                                     -4-
<PAGE>

             SILICON VALLEY BANK                 AMENDMENT TO LOAN AGREEMENT
        -----------------------------------------------------------------------

and the Borrower shall continue in full force and effect and the same are
hereby ratified and confirmed. This Agreement and Consent may be executed in
any number of counterparts, which when taken together shall constitute one
and the same agreement.

CYMER, INC.                            SILICON VALLEY BANK

BY  /s/ Robert P. Akins                BY  /s/ Raquel Cunningham
  --------------------------------       ------------------------------------
    PRESIDENT OR VICE PRESIDENT        TITLE   VICE PRESIDENT
                                            ---------------------------------

CYMER JAPAN, INC.                      BANK OF HAWAII

BY  /s/ William A. Angus, III          BY  /s/ Scott R. Nahme
  --------------------------------       ------------------------------------
    PRESIDENT OR VICE PRESIDENT        TITLE  VICE PRESIDENT
                                            ---------------------------------

                                     -5-

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00004-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00004-of-00352.parquet"}]]