Document:

<PAGE>

                                                                    Exhibit 10.5

  Bank of America [LOGO]

                          COMMERCIAL PLEDGE AGREEMENT

================================================================================

  Grantor: Newport Corporation     Lender: Bank of America, N.A.
           1791 Deere Avenue               CLSC-Commercial Banking (LA)
           Irvine, CA 92606                CA9-703-11-11
                                           333 South Beaudry Avenue, 11th Floor
                                           Los Angeles, CA 90017-1486

================================================================================

  THIS COMMERCIAL PLEDGE AGREEMENT dated September 25, 2002, is made and
  executed between Newport Corporation ("Grantor") and Bank of America, N.A.
  ("Lender").

  GRANT OF SECURITY INTEREST. For valuable consideration, Grantor grants to
  Lender a security interest in the Collateral to secure the Indebtedness and
  agrees that Lender shall have the rights stated in this Agreement with respect
  to the Collateral, in addition to all other rights which Lender may have by
  law.

  COLLATERAL DESCRIPTION. The word "Collateral" as used in this Agreement means
  Grantor's present and future rights, title and interest in and to, together
  with any and all present and future additions thereto, substitutions
  therefore, and replacements thereof, and further together with all Income and
  Proceeds as described herein:

     (a) Account number ending in 0465393 held by Bank of America, N.A. as agent
     or custodian for Grantor (or any one or more Grantor) under an agreement
     for custody, safekeeping, investment management, investment advisory or
     similar services between Grantor and Bank of America, N.A., and all
     successor and replacement accounts, regardless of the numbers of such
     accounts or the offices at which such accounts are maintained (the
     "Accounts") and all rights of Grantor in connection with the Accounts. (b)
     All investment property, security entitlements, financial assets,
     certificated securities, uncertified securities, money, deposit accounts,
     instruments, certificates of deposit, general intangibles, and all other
     investments or property of any sort now or hereafter held, maintained or
     administered in the Accounts; but excluding collective investment funds
     managed by Lender including without limitation any interest in variable
     amount notes, commonly known as "master notes"; and excluding anything
     construed as real property under applicable state law. (c) All Income and
     Proceeds from the Collateral as defined herein.

  RIGHT OF SETOFF. To the extent permitted by applicable law, Lender reserves a
  right of setoff in all Grantor's accounts with Lender (whether checking,
  savings, or some other account). This includes all accounts Grantor holds
  jointly with someone else and all accounts Grantor may open in the future.
  However, this does not include any IRA or Keogh accounts, or any trust
  accounts for which setoff would be prohibited by law. Grantor authorizes
  Lender, to the extent permitted by applicable law, to charge or setoff all
  sums owing on the Indebtedness against any and all such accounts.

  REPRESENTATIONS AND WARRANTIES WITH RESPECT TO THE COLLATERAL. Grantor
  represents and warrants to Lender that:

     Ownership. Grantor is the lawful owner of the Collateral free and clear of
     all security interests, liens, encumbrances and claims of others except as
     disclosed to and accepted by Lender in writing prior to execution of this
     Agreement.

     Right to Pledge. Grantor has the full right, power and authority to enter
     into this Agreement and to pledge the Collateral.

     Authority; Binding Effect. Grantor has the full right, power and authority
     to enter into this Agreement and to grant a security interest in the
     Collateral to Lender. This Agreement is binding upon Grantor as well as
     Grantor's successor and assigns, and is legally enforceable in accordance
     with its terms. The foregoing representations and warranties, and all other
     representations and warranties contained in this Agreement are and shall be
     continuing in nature and shall remain in full force and effect until such
     time as this Agreement is terminated or cancelled as provided herein.

     No Further Assignment. Grantor has not, and shall not, sell, assign,
     transfer, encumber or otherwise dispose of any of Grantor's rights in the
     Collateral except as provided in this Agreement.

     No Defaults. There are no defaults existing under the Collateral, and there
     are no offsets or counterclaims to the same. Grantor will strictly and
     promptly perform each of the terms, conditions, covenants and agreements,
     if any, contained in the Collateral which are to be performed by Grantor.

     No Violation, The execution and delivery of this Agreement will not violate
     any law or agreement governing Grantor or to which Grantor is a party, and
     its certificate or articles of incorporation and bylaws do not prohibit any
     term or condition of this Agreement.

     Financing Statements. Grantor authorizes Lender to file a UCC-1 financing
     statement, or alternatively, a copy of this Agreement to perfect Lender's
     security interest. At Lender's request, Grantor additionally agrees to sign
     all other documents that are necessary to perfect, protect, and continue
     Lender's security interest in the Property. Grantor will pay all filing
     fees, title transfer fees, and other fees and costs involved unless
     prohibited by law or unless Lender is required by law to pay such fees and
     costs. Grantor irrevocably appoints Lender to execute financing statements
     and documents of title in Grantor's name and to execute all documents
     necessary to transfer title if there is a default. Lender may file a copy
     of this Agreement as a financing statement. If Grantor changes Grantor's
     name or address, or the name or address of any person granting a security
     interest under this Agreement changes, Grantor will promptly notify the
     Lender of such change.

  LENDER'S RIGHTS AND OBLIGATIONS WITH RESPECT TO THE COLLATERAL. Lender may
  hold the Collateral until all Indebtedness has been paid and satisfied.
  Thereafter Lender may deliver the Collateral to Grantor or to any other owner
  of the Collateral. Lender shall have the following rights in addition to all
  other rights Lender may have by law:

     Maintenance and Protection of Collateral. Lender may, but shall not be
     obligated to, take such steps as it deems necessary or desirable to
     protect, maintain, insure, store, or care for the Collateral, including
     paying of any liens or claims against the Collateral. This may include such
     things as hiring other people, such as attorneys, appraiser or other
     experts. Lender may charge Grantor for any cost incurred in so doing. When
     applicable law provides more than one method of perfection of Lender's
     security interest, Lender may choose the method(s) to be used.

     Income and Proceeds from the Collateral. Lender may receive all Income and
     Proceeds and add it to the Collateral. Grantor agrees to deliver to Lender
     immediately upon receipt, in the exact form received and without
     commingling with other property, all Income and Proceeds from the
     Collateral which may be received by, paid, or delivered to Grantor or for
     Grantor's account, whether as an addition to, in discharge of, in
     substitution of, or in exchange for any of the Collateral.

     Application of Cash. At Lender's option, Lender may apply any cash, whether
     included in the Collateral or received as Income and Proceeds or through
     liquidation, sale, or retirement, of the Collateral, to the satisfaction of
     the Indebtedness or such portion thereof as Lender shall choose,

<PAGE>

                          COMMERCIAL PLEDGE AGREEMENT
                                  (Continued)                             Page 2
================================================================================

     whether or not matured.

     Transactions with Others. Lender may (1) extend time for payment or other
     performance, (2) grant a renewal or change in terms or conditions, or (3)
     compromise, compound or release any obligation, with any one or more
     Obligors, endorsers, or Guarantors of the Indebtedness as Lender deems
     advisable, without obtaining the prior written consent of Grantor, and no
     such act or failure to act shall affect Lender's rights against Grantor or
     the Collateral.

     All Collateral Secures Indebtedness. All Collateral shall be security for
     the security for the Indebtedness, whether the Collateral is located at one
     or more offices or branches of Lender. This will be the case whether or not
     the office or branch where Grantor obtained Grantor's loan knows about the
     Collateral or relies upon the Collateral as security.

     Collection of Collateral. Lender at Lender's option may, but need not,
     collect the Income and Proceeds directly from the Obligors. Grantor
     authorizes and directs the Obligors, if Lender decides to collect the
     Income and Proceeds, to pay and deliver to Lender all Income and Proceeds
     from the Collateral and to accept Lender's receipt for the payments.

     Power of Attorney. Grantor irrevocably appoints Lender as Grantor's
     attorney-in-fact, with full power of substitution, (a) to demand, collect,
     receive, receipt for, sue and recover all Income and Proceeds and other
     sums of money and other property which may now or hereafter become due,
     owing or payable from the Obligors in accordance with the terms of the
     Collateral; (b) to execute, sign and endorse any and all instruments,
     receipts, checks, drafts and warrants issued in payment for the Collateral;
     (c) to settle or compromise any and all claims arising under the
     Collateral, and in the place and stead of Grantor, execute and deliver
     Grantor's release and acquittance for Grantor; (d) to file any claim or
     claims or to take any action or institute or take part in any proceedings,
     either in Lender's own name or in the name of Grantor, or otherwise, which
     in the discretion of Lender may seem to be necessary or advisable; and (e)
     to execute in Grantor's name and to deliver to the Obligors on Grantor's
     behalf, at the time and in the manner specified by the Collateral, any
     necessary instruments or documents.

     Perfection of Security Interest. Upon Lender's request, Grantor will
     deliver to Lender any and all of the documents evidencing or constituting
     the Collateral. When applicable law provides more than one method of
     perfection of Lender's security interest, Lender may choose the method(s)
     to be used. Upon Lender's request, Grantor will sign and deliver any
     writings necessary to perfect Lender's security interest. Grantor hereby
     appoints Lender as Grantor's irrevocable attorney-in-fact for the purpose
     of executing any documents necessary to perfect, amend, or to continue the
     security interest granted in this Agreement or to demand termination of
     filings of other secured parties. This is a continuing Security Agreement
     and will continue in effect even though all or part of the Indebtedness is
     paid in full and even though for a period of time Grantor may not be
     indebted to Lender.

LENDER'S EXPENDITURES. If any action or proceeding is commenced that would
materially affect Lender's interest in the Collateral or if Grantor fails to
comply with any provision of this Agreement or any Related Documents, including
but not limited to Grantor's failure to discharge or pay when due any amounts
Grantor is required to discharge or pay under this Agreement or any Related
Documents, Lender on Grantor's behalf may (but shall not be obligated to) take
any action that Lender deems appropriate, including but not limited to
discharging or paying all taxes, liens, security interests, encumbrances and
other claims, at any time levied or placed on the Collateral and paying all
costs for insuring, maintaining and preserving the Collateral. All such
expenditures incurred or paid by Lender for such purposes will then bear
interest at the rate charged under the Note from the date incurred or paid by
Lender to the date of repayment by Grantor. All such expenses will become a part
of the Indebtedness and, at Lender's option, will (A) be payable on demand; (B)
be added to the balance of the Note and be apportioned among and be payable with
any installment payments to become due during either (1) the term of any
applicable insurance policy; or (2) the remaining term of the Note; or (C) be
treated as a balloon payment which will be due and payable at the Note's
maturity. The Agreement also will secure payment of these amounts. Such right
shall be in addition to all other rights and remedies to which Lender may be
entitled upon Default.

LIMITATIONS ON OBLIGATIONS OF LENDER. Lender shall use ordinary reasonable care
in the physical preservation and custody of the Collateral in Lender's
possession, but shall have no other obligation to protect the Collateral or its
value. In particular, but without limitation, Lender shall have no
responsibility for (A) any depreciation in value of the Collateral or for the
collection or protection of any Income and Proceeds from the Collateral, (B)
preservation of rights against parties to the Collateral or against third
persons, (C) ascertaining any maturities, calls, conversions, exchange, offers,
tenders, or similar matters relating to any of the Collateral, or (D) informing
Grantor about any of the above, whether or not Lender has or is deemed to have
knowledge of such matters. Except as provided above, Lender shall have no
liability for depreciation or deterioration of the Collateral.

DEFAULT. Each of the following shall constitute an Event of Default under this
Agreement:

     Payment Default. Grantor fails to make any payment due under the
     Indebtedness.

     Other Defaults. Grantor fails to comply with or to perform any other term,
     obligation, covenant or condition contained in this Agreement or in any of
     the Related Documents or to comply with or to perform any term, obligation,
     covenant or condition contained in any other agreement between Lender and
     Grantor.

     Default in Favor of Third Parties. Should Grantor or any Grantor default
     under any loan, extension of credit, security agreement, purchase or sales
     agreement, or any other agreement, in favor of any other creditor or person
     that may materially affect any of Grantor's property or Grantor's or any
     Grantor's ablility to repay the Indebtedness or perform their respective
     obligations under this Agreement or any of the Related Documents.

     False Statements. Any warranty, representation or statement made or
     furnished to Lender by Grantor or on Grantor's behalf under this Agreement
     or the Related Documents is false or misleading in any material respect,
     either now or at the time made or furnished or becomes false or misleading
     at any time thereafter.

     Defective Collateralization. This Agreement or any of the Related Documents
     ceases to be in full force and effect (including failure of any collateral
     document to create a valid and perfected security interest or lien) at any
     time and for any reason.

     Insolvency. The dissolution or termination of Grantor's existence as a
     going business, the insolvency of Grantor, the appointment of a receiver
     for any part of Grantor's property, any assignment for the benefit of
     creditors, any type of creditor workout, or the commencement of any
     proceeding under any bankruptcy or insolvency laws by or against Grantor.

     Creditor or Forfeiture Proceedings. Commencement of foreclosure or
     forfeiture proceedings, whether by judicial proceeding, self-help,
     repossession or any other method, by any creditor of Grantor or by any
     governmental agency against any collateral securing the Indebtedness. This
     includes a garnishment of any of Grantor's accounts, including deposit
     accounts, with Lender. However, this Event of Default shall not apply if
     there is a good faith dispute by Grantor as to the validity or
     reasonableness of the claim which is the basis of the creditor or
     forfeiture proceeding and if Grantor gives Lender written notice of the
     creditor or forfeiture proceeding and deposits with Lender monies or a
     surety bond for the creditor or forfeiture proceeding, in an amount
     determined by Lender, in its sole discretion, as being an adequate reserve
     or bond for the dispute.

     Events Affecting Guarantor. Any of the preceding events occurs with respect
     to guarantor, endorser, surety, or accommodation party of any of the
     Indebtedness or guarantor, endorser, surety, or accommodation party dies or
     becomes incompetent or revokes or disputes the validity of, or

<PAGE>

                          COMMERCIAL PLEDGE AGREEMENT
                                  (Continued)                             Page 3
================================================================================
          liability under, any Guaranty of the Indebtedness.

          Adverse Change. A material adverse change occurs in Grantor's
          financial condition, or Lender believes the prospect of payment or
          performance of the Indebtedness is impaired.

     RIGHTS AND REMEDIES ON DEFAULT. If an Event of Default occurs under this
     Agreement, at any time thereafter, Lender may exercise any one or more of
     the following rights and remedies:

          Accelerate Indebtedness. Declare all Indebtedness, including any
          prepayment penalty which Grantor would be required to pay, immediately
          due and payable, without notice of any kind to Grantor.

          Collect the Collateral. Collect any of the Collateral and, at Lender's
          option and to the extent permitted by applicable law, retain
          possession of the Collateral while suing on the indebtedness.

          Sell the Collateral. Sell the Collateral, at Lender's discretion, as a
          unit or in parcels, at one or more public or private sales. Unless the
          Collateral is perishable or threatens to decline speedily in value or
          is of a type customarily sold on a recognized market, Lender shall
          give or mail to Grantor, and other persons as required by law, notice
          at least ten(10) days in advance of the time and place of any public
          sale, or of the time after which any private sale may be made.
          However, no notice need be provided to any person who, after an Event
          of Default occurs, enters into and authenticates an agreement waiving
          that person's right to notification of sale. Grantor agrees that any
          requirement of reasonable notice as to Grantor is satisfied if Lender
          mails notice by ordinary mail addressed to Grantor at the last address
          Grantor has given Lender in writing. If a public sale is held, there
          shall be sufficient compliance with all requirements of notice to the
          public by a single publication in any newspaper of general circulation
          in the county where the Collateral is located, setting forth the time
          and place of sale and a brief description of the property to be sold.
          Lender may be a purchaser at any public sale.

          Sell Securities. Sell any securities included in the Collateral in a
          manner consistent with applicable federal and state securities laws.
          If, because of restrictions under such laws, Lender is unable, or
          believes Lender is unable, to sell the securities in an open market
          transaction, Grantor agrees that Lender will have no obligation to
          delay sale until the securities can be registered. Then Lender may
          make a private sale to one or more persons or to a restricted group of
          persons, even though such sale may result in a price that is less
          favorable than might be obtained in an open market transaction. Such a
          sale will be considered commercially reasonable. If any securities
          held as Collateral are "restricted securities" as defined in the Rules
          of the Securities and Exchange Commission (such as Regulation D or
          Rule 144) or the rules of state securities departments under state
          "Blue Sky" laws, or if Grantor or any other owner of the Collateral is
          an affiliate of the issuer of the securities, Grantor agrees that
          neither Grantor, nor any member of Grantor's family, nor any other
          person signing this Agreement will sell or dispose of any securities
          of such issuer without obtaining Lender's prior written consent.

          Foreclosure. Maintain a judicial suit for foreclosure and sale of the
          Collateral.

          Transfer Title. Effect transfer of title upon sale of all or part of
          the Collateral. For this purpose, Grantor irrevocably appoints Lender
          as Grantor's attorney-in-fact to execute endorsements, assignments and
          instruments in the name of Grantor and each of them (if more than one)
          as shall be necessary or reasonable.

          Other Rights and Remedies. Have and exercise any or all of the rights
          and remedies of a secured creditor under the provisions of the Uniform
          Commercial Code, at law, in equity, or otherwise.

          Application of Proceeds. Apply any cash which is part of the
          Collateral, or which is received from the collection or sale of the
          Collateral, to reimbursement of any expenses, including any costs for
          registration of securities, commissions incurred in connection with a
          sale, attorney's fees and court costs, whether or not there is a
          lawsuit and including any fees on appeal, incurred by Lender in
          connection with the collection and sale of such Collateral and to the
          payment of the Indebtedness of Grantor to Lender, with any excess
          funds to be paid to Grantor as the interests of Grantor may appear.
          Grantor agrees, to the extent permitted by law, to pay any deficiency
          after application of the proceeds of the Collateral to the
          Indebtedness.

          Election of Remedies. Except as may be prohibited by applicable law,
          all of Lender's rights and remedies, whether evidenced by this
          Agreement, the Related Documents, or by any other writing, shall be
          cumulative and may be exercised singularly or concurrently. Election
          by Lender to pursue any remedy shall not exclude pursuit of any other
          remedy, and an election to make expenditures or to take action to
          perform an obligation of Grantor under this Agreement, after Grantor's
          failure to perform, shall not affect Lender's right to declare a
          default and exercise its remedies.

     ARBITRATION. (a) This paragraph concerns the resolution of any
     controversies or claims between the parties, whether arising in contract,
     tort or by statute, including but not limited to controversies or claims
     that arise out of or relate to: (1) this agreement (including any renewals,
     extensions or modifications); or (ii) any document related to this
     agreement; (collectively a "Claim").

     (b) At the request of any party to this agreement, any Claim shall be
     resolved by binding arbitration in accordance with the Federal Arbitration
     Act (Title 9, U. S. Code) (the "Act"). The Act will apply even though this
     agreement provides that it is governed by the law of a specified state.

     (c) Arbitration proceedings will be determined in accordance with the Act,
     the applicable rules and procedures for the arbitration of disputes of JAMS
     or any successor thereof ("JAMS"), and the terms of this paragraph. In the
     event of any inconsistency, the terms of this paragraph shall control.

     (d) The arbitration shall be administered by JAMS and conducted, unless
     otherwise required by law, in any U. S. state where real or tangible
     personal property collateral for this credit is located or if there is no
     such collateral, in the state specified in the governing law section of
     this agreement. All Claims shall be determined by one arbitrator; however,
     if Claims exceed $5,000,000, upon the request of any party, the Claims
     shall be decided by three arbitrators. All arbitration hearings shall
     commence within 90 days of the demand for arbitration and close within 90
     days of commencement and the award of the arbitrator(s) shall be issued
     within 30 days of the close of the hearing. However, the arbitrator(s),
     upon a showing of good cause, may extend the commencement of the hearing
     for up to an additional 60 days. The arbitrator(s) shall provide a concise
     written statement of reasons for the award. The arbitration award may be
     submitted to any court having jurisdiction to be confirmed and enforced.

     (e) The arbitrator(s) will have the authority to decide whether any Claim
     is barred by the statute of limitations and, if so, to dismiss the
     arbitration on that basis. For purposes of the application of the statute
     of limitations, the service on JAMS under applicable JAMS rules of a notice
     of Claim is the equivalent of the filing of a lawsuit. Any dispute
     concerning this arbitration provision or whether a Claim is arbitratable
     shall be determined by the arbitrator(s). The arbitrator(s) shall have the
     power to award legal fees pursuant to the terms of this agreement.

     (f) This paragraph does not limit the right of any part to: (i) exercise
     self-help remedies, such as but not limited to, setoff; (ii) initiate
     judicial or nonjudicial foreclosure against any real or personal property
     collateral; (iii) exercise any judicial or power of sale rights, or (iv)
     act in a court of law to obtain an interim remedy, such as but not limited
     to, injunctive relief, writ of possession or appointment of a receiver, or
     additional or supplementary

<PAGE>

                          COMMERCIAL PLEDGE AGREEMENT
                                   (Continued)                            Page 4
================================================================================

     remedies.

     (g) The filing of a court action is not intended to constitute a waiver of
     the right of any party, including the suing party, thereafter to require
     submittal of the Claim to arbitration.

     (h) all obligations, debts and liabilities, including any swap, option or
     forward obligations, plus interest thereon, of Borrower to Lender, or any
     one or more of them, as well as all claims by Lender against Borrower or
     any other party to this Agreement or any one or more of them, whether now
     existing or hereafter arising, whether related or unrelated to the purpose
     of the Note, whether voluntary or otherwise, whether due or not due,
     direct or indirect, absolute or contingent, liquidated or unliquidated and
     whether Borrower or any other party to this Agreement may be liable
     individually or jointly with others, whether obligated as guarantor,
     surety, accommodation party or otherwise, and whether recovery upon such
     amounts may be or hereafter may become barred by any stature of
     limitations, and whether the obligation to repay such amounts may be or
     hereafter may become otherwise unenforceable. Unless the Borrower and any
     other party to this Agreement shall have otherwise agreed in writing or
     received written notice thereof, this Agreement shall not secure any
     obligation owing to Lender which constitutes "consumer credit" subject to
     the disclosure requirements of the Federal Truth in Lending Act and any
     regulations promulgated thereunder.

     ADDITIONAL DEFAULTS. Each of the following shall constitute an event of
     default ("Event of Default)" under this Agreement:

     Event of Default Under Related Documents. A default or event of default
     occurs under the terms of any Related Document executed by Borrower or any
     guarantor, pledgor, accommodation party or other obligor.

     Revocation or Termination of Trust. If any Borrower, grantor, guarantor,
     pledgor, accommodation party or other obligor on the indebtedness secured
     hereunder or any of the related documents is a trust or the trustee(s) of a
     trust, such trust is revoked or otherwise terminated or all or a
     substantial part of such trust's assets are distributed or otherwise
     disposed of, or in the case of a revocable trust, the grantor of such trust
     dies.

     Default by Affiliates. Any affiliate of Borrower defaults under any loan,
     extension of credit, security agreement, purchase or sales agreement, or
     any other agreement, in favor of Lender or any other creditor.

     COUNTERPART SIGNATURES. This Agreement may be executed in any number of
     counterparts, each of which when so executed shall be deemed to be origal
     and all of which taken together shall constitute one and the same
     agreement.

     COLLATERAL MAINTENANCE AND NOTICE RIDER. A rider, titled "Collateral
     Maintenance and Notice Rider," is attached to this Agreement and by this
     reference is made a part of this Agreement just as if all the provisions,
     terms and conditions of the rider have been fully set forth in this
     Agreement.

     ADDRESS FOR NOTICES. Notwithstanding anything to the contrary herein, all
     notices and communications to the Lender shall be directed to the following
     address:

               Bank of America, N.A.
               Los Angeles CLSC, Attn: Notice Desk
               333 South Beaudry Avenue, 11th Floor
               Los Angeles, CA 90017-1486.

     MISCELLANEOUS PROVISIONS. The following miscellaneous provisions are a part
     of this Agreement:

          Amendments. This Agreement, together with any Related Documents,
          constitutes the entire understanding and agreement of the parties as
          to the matters set forth in this Agreement. No alteration of or
          amendment to this Agreement shall be effective unless given in writing
          and signed by the party or parties sought to be charged or bound by
          the alteration or amendment.

          Attorneys' Fees; Expenses. Grantor agrees to pay upon demand all of
          Lender's costs and expenses, including Lender's attorneys' fees and
          Lender's legal expenses, incurred in connection with the enforcement
          of this Agreement. Lender may hire or pay someone else to help enforce
          this Agreement, and Grantor shall pay the costs and expenses of such
          enforcement. Costs and expenses include Lender's attorneys' fees and
          legal expenses whether or not there is a lawsuit, including attorneys'
          fees and legal expenses for bankruptcy proceedings (including efforts
          to modify or vacate any automatic stay or injunction), appeals, and
          any anticipated post-judgement collection services. Grantor also shall
          pay all court costs and such additional fees as may be directed by the
          court.

          Caption Headings. Caption headings in this Agreement are for
          convenience purposes only and are not to be used to interpret or
          define the provisions of this Agreement.

          Governing Law. This Agreement will be governed by, construed and
          enforced in accordance with federal law and the laws of the State of
          California. This Agreement has been accepted by Lender in the State of
          California.

          Choice of Venue. If there is a lawsuit, Grantor agrees upon Lender's
          request to submit to the jurisdiction of the courts of any County,
          State of California.

          No Waiver by Lender. Lender shall not be deemed to have waived any
          rights under this Agreement unless such waiver is given in writing and
          signed by Lender. No delay or omission on the part of Lender in
          exercising any right shall operate as a waiver of such right or any
          other right. A waiver by Lender of a provision of this Agreement shall
          not prejudice or constitute a waiver of Lender's right otherwise to
          demand strict compliance with that provision or any other provision of
          this Agreement. No prior waiver by Lender, nor any course of dealing
          between Lender and Grantor, shall constitute a waiver of any of
          Lender's rights or of any of Grantor's obligations as to any future
          transactions. Whenever the consent of Lender is required under this
          Agreement, the granting of such consent by Lender in any instance
          shall not constitute continuing consent of subsequent instances where
          such consent is required and in all cases such consent may be granted
          or withheld in the sole discretion of Lender.

          Preference Payments. Any monies Lender pays because of an asserted
          preference claim in Grantor's bankruptcy will become a part of the
          Indebtedness and, at Lender's option, shall be payable by Grantor as
          provided in this Agreement.

          Notices. Any notice required to be given under this Agreement shall be
          given in writing, and shall be effective when actually delivered, when
          actually received by telefacsimile (unless otherwise required by law),
          when deposited with a nationally recognized overnight courier, or, if
          mailed, when deposited in the United States mail, as first class,
          certified or registered mail postage prepaid, directed to the
          addresses shown near the beginning of this Agreement. Any party may
          change its address for notices under this Agreement by giving formal
          written notice to the other parties, specifying that the purpose of
          the notice is to change the party's address. For notice purposes,
          Grantor agrees to keep Lender informed at all times of Grantor's
          current address. Unless otherwise provided or required by law, if
          there is more than one Grantor, any notice given by Lender to any
          Grantor is deemed to be notice given to all Grantors

          Waiver of Co-Obligor's Rights. If more than one person is obligated
          for the Indebtedness, Grantor irrevocably waives, disclaims and
          relinquishes all claims against such other person which Grantor has or
          would otherwise have by virtue of payment of the Indebtedness or any
          part

          See Exhibit Attached

<PAGE>

                          COMMERCIAL PLEDGE AGREEMENT
                                  (Continued)                             Page 5
================================================================================

         thereof, specifically including but not limited to all rights of
         indemnity, contribution or exoneration.

         Severability. If a court of competent jurisdiction finds any provision
         of this Agreement to be illegal, invalid, or unenforceable as to any
         circumstance, that finding shall not make the offending provision
         illegal, invalid, or unenforceable as to any other circumstance. If
         feasible, the offending provision shall be considered modified so that
         it becomes legal, valid and enforceable. If the offending provision
         cannot be so modified, it shall be considered deleted from this
         Agreement. Unless otherwise required by law, the illegality,
         invalidity, or unenforceability of any provision of this Agreement
         shall not affect the legality, validity or enforceability of any other
         provision of this Agreement.

         Successors and Assigns. Subject to any limitations stated in this
         Agreement on transfer of Grantor's interest, this Agreement shall be
         binding upon and inure to the benefit of the parties, their successors
         and assigns. If ownership of the Collateral becomes vested in a person
         other than Grantor, Lender, without notice to Grantor, may deal with
         Grantor's successors with reference to this Agreement and the
         Indebtedness by way of forbearance or extension without releasing
         Grantor from the obligations of this Agreement or liability under the
         Indebtedness.

         Time is of the Essence. Time is of the essence in the performance of
         this Agreement.

         Waive Jury. All parties to this Agreement hereby waive the right to any
         jury trial in any action, proceeding, or counterclaim brought by any
         party against any other party.

DEFINITIONS. The following capitalized words and terms shall have the following
meanings when used in this Agreement. Unless specifically stated to the
contrary, all references to dollar amounts shall mean amounts in lawful money of
the United States of America. Words and terms used in the singular shall include
the plural, and the plural shall include the singular, as the context may
require. Words and terms not otherwise defined in this Agreement shall have the
meanings attributed to such terms in the Uniform Commercial Code:

         Agreement. The word "Agreement" means this Commercial Pledge Agreement,
         as this Commercial Pledge Agreement may be amended or modified from
         time to time, together with all exhibits and schedules attached to this
         Commercial Pledge Agreement from time to time.

         Borrower. The word "Borrower" means Newport Corporation, and all other
         persons and entities signing the Note in whatever capacity.

         Collateral. The word "Collateral" means all of Grantor's right, title
         and interest in and to all the Collateral as described in the
         Collateral Description section of this Agreement.

         Default. The word "Default" means the Default set forth in this
         Agreement in the section titled "Default".

         Event of Default. The words "Event of Default" mean any of the events
         of default set forth in this Agreement in the default section of this
         Agreement.

         Grantor. The word "Grantor" means Newport Corporation.

         Guaranty. The word "Guaranty" means the guaranty from guarantor,
         endorser, surety, or accommodation party to Lender, including without
         limitation a guaranty of all or part of the Note.

         Income and Proceeds. The words "Income and Proceeds" mean all present
         and future income, proceeds, earnings, increases, and substitutions
         from or for the Collateral of every kind and nature, including without
         limitation all payments, interest, profits, distributions, benefits,
         rights, options, warrants, dividends, stock dividends, stock splits,
         stock rights, regulatory dividends, subscriptions, monies, claims for
         money due and to become due, proceeds of any insurance on the
         Collateral, shares of stock of different par value or no par value
         issued in substitution or exchange for shares included in the
         Collateral, and all other property Grantor is entitled to receive on
         account of such Collateral, including accounts, documents, instruments,
         chattel paper, and general intangibles.

         Indebtedness. The word "Indebtedness" means the indebtedness evidenced
         by the Note or Related Documents, including all principal and interest
         together with all other indebtedness and costs and expenses for which
         Borrower or Grantor or any other borrower, guarantor, pledgor, obligor
         or accommodation party is responsible under this Agreement or under any
         of the Related Documents, including any swap, option or forward
         obligations.

         Lender. The word "Lender" means Bank of America, N.A., its successors
         and assigns.

         Note. The word "Note" means (i) the Note executed by Borrower in the
         principal amount of $5,000,000 dated September 25, 2002, (ii) any other
         promissory note, credit agreement or letter of credit agreement now or
         hereafter executed by Borrower in favor of Lender with respect to the
         indebtedness, including without limitation those promissory notes,
         credit agreements and letter of credit agreements described on any
         schedule or exhibit attached to this Agreement from time to time, and
         (iii) any renewals of, extensions of, modifications of, refinancings
         of, consolidations of, and substitutions for any of the foregoing.

         Obligor. The word "Obligor" means without limitation any and all
         persons obligated to pay money or to perform some other act under the
         Collateral.

         Property. The word "Property" means all of Grantor's right, title and
         interest in and to all the Property as described in the "Collateral
         Description" section of this Agreement.

         Related Documents. The words "Related Documents" mean all promissory
         notes, credit agreements, loan agreements, environmental agreements,
         guaranties, security agreements, mortgages, deeds of trust, security
         deeds, collateral mortgages, and all other instruments, agreements and
         documents, whether now or hereafter existing, executed in connection
         with the Indebtedness.

GRANTOR HAS READ AND UNDERSTOOD ALL THE PROVISIONS OF THIS COMMERCIAL PLEDGE
AGREEMENT AND AGREES TO ITS TERMS. THIS AGREEMENT IS DATED SEPTEMBER 25, 2002.

GRANTOR:

NEWPORT CORPORATION

By: /s/ William R. Abbott                 By: /s/ Jeffrey B. Coyne
   ------------------------------------      --------------------------------
    William R. Abbott, VP of Finance          Jeffrey B. Coyne, VP & General
    & Treasurer of Newport Corporation        Counsel of Newport Corporation

<PAGE>

                           COMMERCIAL PLEDGE AGREEMENT
                                  (Continued)                             Page 6
================================================================================

================================================================================

<PAGE>

                     EXHIBIT TO COMMERCIAL PLEDGE AGREEMENT

This EXHIBIT TO COMMERCIAL PLEDGE AGREEMENT is attached to an by this reference
is made a part of the Commercial Pledge Agreement, dated September 25, 2002, and
executed in connection with a loan or other financial accommodations between
BANK OF AMERICA, N.A. and Newport Corporation.

1.1  Exceptions to Default.

     (a) The paragraph entitled "Payment Default", under DEFAULT, is amended to
         read as follows:

         "Payment Default. Grantor fails to make any payment when due under the
         Indebtedness within five (5) business days of the date due."

     (b) The paragraph entitled "Other Defaults", under DEFAULT, is amended to
         read as follows:

         "Other Default. Grantor fails to comply with or to perform any other
         term, obligation, covenant or condition contained in this Agreement or
         in any of the Related Documents or to comply with or to perform any
         term, obligation, covenant or condition contained in any other
         agreement between Lender and Grantor, and does not cure such failure
         within thirty (30) days following notice from Lender of such failure."

     (c) The paragraph entitled "Default in Favor of Third Parties", under
         DEFAULT, is amended to read as follows:

         "Default in Favor Third Parties. Should Grantor or any Grantor default
         under any loan, extension of credit, security agreement, purchase or
         sales agreement, or any other agreement, in favor of any other creditor
         or person that may materially affect any of Grantor's property or
         Grantor's ability to repay the Indebtedness or perform their respective
         obligations under this Agreement or any of the Related Documents, and
         does not cure such failure within thirty (30) days following receipt of
         notice of such default."

1.2  Exception to Arbitration.

     (a) Subparagraph (d) of the paragraph entitled "Arbitration" is amended to
         read as follows:

         "(d) the arbitration shall be administered by JAMS and conducted,
         unless otherwise required by law, in Orange County, California. All
         Claims shall be determined by one arbitrator; however, if Claims exceed
         $5,000,000, upon the request of any party, the Claims shall be decided
         by three arbitrators. All arbitration hearings shall commence within 90
         days of the demand for arbitration and close within 90 days of
         commencement and the award of the arbitrator(s) shall be issued within
         30 days of the close of the hearing. However, the arbitrator(s), upon a
         showing of good cause, may extend the commencement of the hearing for
         up to an additional 60 days. The arbitrator(s) shall provide a concise
         written statement of reasons for the award. The arbitration award may
         be submitted to any court having jurisdiction to be confirmed and
         enforced."

1.3  Exceptions to Miscellaneous Provisions.

     (a) The paragraph entitled "Choice of Venue", under MISCELLANEOUS
         PROVISIONS, is amended to read as follows:

         "Choice of Venue. If there is a lawsuit, Grantor agrees upon Lender's
         request to submit to the jurisdiction of the courts of Orange County,
         State of California."

<PAGE>

THIS EXHIBIT A TO COMMERCIAL PLEDGE AGREEMENT IS EXECUTED ON SEPTEMBER 25, 2002.

GRANTOR:

NEWPORT CORPORATION

By: /s/ William R. Abbott
   ------------------------
        William R. Abbott, VP of Finance &
        Treasurer of Newport Corporation

By: /s/ Jeffrey B. Coyne
   ------------------------
        Jeffrey B. Coyne, VP & General Counsel
        of Newport Corporation

LENDER:

BANK OF AMERICA, N.A.

By: /s/ C K Goodfellow
   ------------------------
        Authorized SignerSecond Amendment To Lease

   
 EXHIBIT 10.20
 SECOND AMENDMENT TO LEASE
 Extension &
Reduction
             THIS SECOND AMENDMENT, dated this 20th day of August, 2002 is by and between Bernardo/Three Flags, LLC, a
Delaware limited liability company, formerly known as Bernardo/Three Flags, Inc., a Delaware corporation, ("Landlord"), and SourcingLink.net, Inc., a Delaware corporation, ("Tenant"), for the Premises located in the City of San
Diego, County of San Diego, State of California, commonly known as Suite 260 at 16855 West Bernardo Drive, San Diego, California 92127 ("Premises") in the Bernardo Executive Center ("Building”).
 W I T N E S S E T H :
             WHEREAS, Landlord and Tenant entered into that certain Lease
dated August 25, 1999 (hereinafter referred to as the "Lease"), that certain First Amendment to Lease dated October 4, 1999 ("First Amendment"); 
             WHEREAS, Landlord and Tenant desire to amend the Lease as more fully set forth below.
             NOW, THEREFORE, in consideration of the mutual covenants and conditions contained herein and other good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, the parties agree as follows:

	 1.
 	 Definitions.  Unless otherwise specifically set forth herein, all capitalized terms herein shall have the same meaning as set forth in the Lease.

	  
 	 a.
 	 Use:  Tenant’s use shall be general offices to provide software and services for retailers and their suppliers and for no other purpose.
 
	  
 	  
 
	 2.
 	 Purpose of this Amendment.  Tenant is to reduce the size of their suite by 2,200 rentable square feet.  Therefore, the approximate rentable square
footage of the Premises under the Lease shall decrease from 8,373 to 6,173 rentable square feet as shown on Exhibit "A-2" which is attached hereto and made a part hereof.
 
	  
 	  
 
	 3.
 	 Term.  The Term of this Lease shall be extended for twenty-four (24) months and seventeen (17) days effective October 15, 2002.  The Scheduled
Termination Date of the Lease shall be October 31, 2004 unless sooner terminated pursuant to any provision of the Lease.
 
	  
 	  
 
	 4.
 	 Base Rent. Lease Article 39, Rent Schedule, shall hereinafter provide as follows:
 
	  
 	  
 
	  
 	 Monthly Rent for the period of October 15, 2002 through October 14, 2003 shall be $13,580.60, plus utilities
 Monthly Rent for the period of October 15, 2003 through
October 31, 2004 shall be $14,123.82, plus utilities
 

 Page 1 of 3

  

	 5.
 	 Tenant’s Proportionate Share. Tenant’s proportional share of the direct costs of operation, maintenance, repair and management of the Bernardo Executive Center will
be reduced to 3.6% for Suite 260 which is based on Tenant’s pro-rata share of 171,218 rentable square feet.  This percentage is subject to recalculation based on material adjustments made to the total rentable square footage in the
Bernardo Executive Center.
 
	  
 	  
 
	 6.
 	 Additional Rent/Tenant’s Share of Operating Expenses.  All terms of Lease Article 4, Rent Adjustments, shall apply to Additional Rent and Tenant’s Share of
Operating Expenses except that the Base Year for calculating Operating Expenses shall be changed to Calendar Year 2003 effective October 15, 2002.
 
	  
 	  
 
	 7.
 	 Delete Renewal Option.  Lease Article 44, Renewal Option, is hereby deleted in its entirety, and Tenant shall have no further options to renew this Lease.

	  
 	  
 
	 8.
 	 Utilities.  Lease Article 13, Services and Utilities, is hereby modified to read:  "To the extent that Tenant is not billed directly by a public utility, Tenant
shall pay, upon demand, as additional rent, for Tenant’s pro-rata share of electricity for Suite 260 which is estimated to be $803.00 per month effective October 15, 2002."
 
	  
 	  
 
	 9.
 	 Security Deposit.  Tenant acknowledges that Landlord currently has on account $49,908.60 for the Lease, and this security deposit will remain on-hand for the term of this
Second Amendment.  For Tenant’s compliance with the terms of the Lease and Tenant’s timely payment of rent and other charges, there will be no increase in the amount of Security Deposit held on account for this Second
Amendment.
 
	  
 	  
 
	 10.
 	 Tenant Improvement Allowance.  Landlord has agreed to build-out the Premises according to building standard improvements and to Exhibit “B-2”, Tenant
Improvement Work Letter, which is attached hereto and made a part hereof.
 
	  
 	  
 
	 11.
 	 After Hours HVAC.  Landlord, at Landlord’s expense, shall furnish heating, ventilating, and air conditioning ("HVAC") on business days, in accordance with
Lease Article 13, Services and Utilities, from 7:00 a.m. to 6:00 p.m., Monday through Friday, and on Saturday from 8:00 a.m. to 1:00 p.m., excluding normally recognized public holidays.  In the event Tenant requires after hours HVAC, Tenant
shall pay fifty dollars ($50.00) per hour of use to be paid by the Tenant upon receipt of an invoice from Landlord.
 
	  
 	  
 
	 12.
 	 Furnishing of Financial Statement; Tenant’s Representations.  In order to induce Landlord to enter into this Lease Amendment, Tenant agrees that Tenant shall
promptly furnish Landlord, from time to time, but in no event more frequently than twice per calendar year, within twenty (20) days of Landlord’s written request, with a mid-year or annual financial statement or an annual report, which shall be
accurate in all material respects, reflecting Tenant’s
 

 Page 2 of 3

  

	  
 	 current financial condition and at the election of Landlord, an interim financial report or annual report, which shall be accurate in all material respects of the Guarantor, if
any.  Landlord agrees to hold said financial statements and reports in confidence except that the Landlord specifically reserves the right to provide the same to any potential purchaser of the leased Premises or any potential or then existing
lender of Landlord.
 
	  
 	  
 
	 13.
 	 Incorporation.  Except as modified herein, all other terms and conditions of the Lease between the parties above described, shall continue in full force and
effect.
 
	  
 	  
 
	 14.
 	 Limitation of Landlord’s Liability.  Redress for any claims against Landlord under this Second Amendment or under the Lease shall only be made against Landlord to
the extent of Landlord’s interest in the property to which the Premises are a part.  The obligations of Landlord under this Second Amendment and the Lease shall not be personally binding on, nor shall any resort be had to the private
properties of, any of its trustees, board of directors, members, and officers, as the case may be, the general partners thereof or any beneficiaries, stockholders, employees or agents of Landlord, or its investment managers.
 
	  
 	  
 
	 15.
 	 Corporate Authority.  If Tenant is a corporation, Tenant represents and warrants that this Lease and the undersigned’s execution of this Second Amendment has been
duly authorized and approved by the corporation’s Board of Directors.  The undersigned officers and representatives of the corporation executing this Second Amendment on behalf of the corporation represent and warrant that they are
officers of the corporation with authority to execute this Second Amendment on behalf of the corporation.
 

             IN WITNESS WHEREOF, Landlord and Tenant have executed the Second Amendment as of the day and year first written above.

	 LANDLORD:
 	  
 	 TENANT:
 
	  
 	  
 	  
 
	 BERNARDO/THREE FLAGS, LLC,
 a Delaware limited liability company
 	  
 	 SourcingLink.net, Inc.,
 a Delaware corporation
 
	  
 	  
 	  
 	  
 	  
 
	 BY:
 	 	  
 	  
 	  
 
	  
 	 RREEF Management Company,
 a Delaware corporation
 	  
 	  
 	  
 
	  
 	  
 	  
 	  
 	  
 
	 BY:
 	  /s/   LINDA OHLSEN
  
 	  
 	 BY:
 	  /s/    GARY J. DAVIDSON
  
 
	  
 	 Linda Ohlsen, District Manager
 	  
 	  
 	 Gary J. Davidson, V.P. Finance &
 Administration and CFO
 
	  
 	  
 	  
 	  
 	  
 
	 DATE:
 	  SEPTEMBER 20, 2002
  
 	  
 	 DATE:
 	  SEPTEMBER 20, 2002
  
 
	  
 	  
 	  
 	  
 	  
 
	  
 	  
 	  
 	  
 	  
 
	  
 	  
 	  
 	 BY:
 	  /s/   DANIEL B. RAWLINGS
   
 
	  
 	  
 	  
 	  
 	 Daniel B. Rawlings, CEO
 
	  
 	  
 	  
 	  
 	  
 
	  
 	  
 	  
 	 DATE:
 	  SEPTEMBER 20, 2002

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00044-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00044-of-00352.parquet"}]]