Document:

<Page>

                                                                 Exhibit 10.2(c)

                       AMENDMENT NO. 1 TO CREDIT AGREEMENT

      AMENDMENT NO. 1 TO CREDIT AGREEMENT, dated as of June 20, 2002 (this
"AMENDMENT"), among NORTHWESTERN CORPORATION a Delaware corporation (the
"BORROWER"), the several banks and other financial institutions from time to
time party hereto and CREDIT SUISSE FIRST BOSTON, as Administrative Agent (in
such capacity the "ADMINISTRATIVE AGENT").

      A. Reference is made to that certain Credit Agreement, dated as of January
14, 2002, among the Borrower, the several banks and other financial institutions
from time to time party thereto (each, a "Lender" and, collectively, the
"LENDERS"), Credit Suisse First Boston, ABN AMRO Bank N.V., CIBC Inc. and
Barclays Capital (each a "Co-Arranger" and, collectively, the "CO-ARRANGERS"),
and the Administrative Agent (as the same has been or may be further amended,
supplemented or otherwise modified from time to time, the "CREDIT AGREEMENT"),
pursuant to which the Lenders have extended and agreed to extend credit to the
Borrower on the terms and subject to the conditions set forth therein.

      B. The Borrower has requested that the Credit Agreement be amended on the
terms set forth herein to permit the Borrower to elect to convert Revolving
Credit Loans of certain Lenders outstanding on the Termination Date into term
loans to mature on the first anniversary of the Termination Date.

      C. Accordingly, in consideration of the mutual agreements herein contained
and other good and valuable consideration, the sufficiency and receipt of which
are hereby acknowledged, the parties hereto hereby agree as follows:

            SECTION 1. DEFINITIONS. Unless otherwise specifically defined
herein, capitalized terms used herein shall have their respective meanings
assigned to such terms in the Credit Agreement.

            SECTION 2 AMENDMENT. Subject to the effectiveness of this Amendment
in accordance with Section 4 hereof, the Credit Agreement is hereby amended as
follows:

      (a) Section 1.1 of the Credit Agreement is hereby amended by deleting the
      definitions of "Commitment Percentage", "Note", "Required Lenders" and
      "Type" in their entirety and by inserting the following definitions to
      appear in alphabetical order:

            ""AMENDMENT NO. 1 TO CREDIT AGREEMENT" shall mean Amendment No. 1 to
            Credit Agreement, dated as of June 20, 2002 among the Borrower, the
            several banks and other financial institutions from time to time
            party thereto and Credit Suisse First Boston, as administrative
            agent.

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            "COMMITMENT PERCENTAGE" shall mean, as to any Lender, at any time, a
            fraction (expressed as a percentage) the numerator of which is the
            sum of (A) such Lender's Revolving Credit Commitment (or after the
            Termination Date, such Lender's Revolving Credit Loans and RC Term
            Loans) and (B) such Lender's Term Loan Commitment (or after the
            Closing Date, such Lender's Term Loans), and the denominator of
            which is the sum of (x) the aggregate amount of all Revolving Credit
            Commitments (or after the Termination Date, all Revolving Credit
            Loans and RC Term Loans) and (y) the aggregate amount of all Term
            Loan Commitments (or after the Closing Date, all Term Loans), in
            each case outstanding at such time.

            "CONVERTIBLE REVOLVING CREDIT COMMITMENT" shall mean (a) in the case
            of each Lender that is a signatory to Amendment No. 1 to the Credit
            Agreement as of June 20, 2002, that portion of such Lender's
            Revolving Credit Commitment set forth opposite such Lender's name on
            the signature page to such Amendment No. 1 as such Lender's
            "Convertible Revolving Credit Commitment" and (b) in the case of any
            Lender that becomes a Lender after June 20, 2002, the amount
            specified as such Lender's "Convertible Revolving Credit Commitment"
            in the Assignment and Assumption Agreement pursuant to which such
            Lender assumed a portion of any Lender's Convertible Revolving
            Credit Commitment, in each case as the same may be changed from time
            to time pursuant to the terms hereof. For the avoidance of doubt,
            (1) the Convertible Revolving Credit Commitment, if any, of a Lender
            shall constitute a portion of such Lender's Revolving Credit
            Commitment (and not an independent commitment)(and any assignment of
            a Revolving Credit Commitment which constitutes a Convertible
            Revolving Credit Commitment shall be identified as such in the
            applicable Assignment and Assumption Agreement), (2) each borrowing
            of Revolving Credit Loans (and each issuance of Letters of Credit or
            borrowing of Swingline Loans) shall constitute utilization of the
            Convertible Revolving Credit Commitments pro rata with Revolving
            Credit Commitments of all Lenders (and, in the case of any Lender
            holding both a Convertible Revolving Credit Commitment and a
            non-Convertible Revolving Credit Commitment, pro rata between both
            such Revolving Credit Commitments), and (3) except as expressly
            provided in Section 2.5(a) with respect to the Termination Date, any
            reduction or termination of the Revolving Credit Commitments in
            accordance with the terms of this Agreement shall result in a pro
            rata reduction or termination (as applicable) of the Convertible
            Revolving Credit Commitments.

            "CONVERTIBLE REVOLVING CREDIT LOANS" shall mean Revolving Credit
            Loans outstanding under any Convertible Revolving Credit Commitment.

            "MATURITY DATE" shall mean the one year anniversary of the
            Termination Date.

            "NOTE" shall mean, as applicable, a Revolving Credit Note, a Term
            Note, an RC Term Note, or a QFL Note.

<Page>

            "NOTICE OF CONVERTIBLE REVOLVING CREDIT LOAN CONVERSION" shall have
            the meaning ascribed thereto in Section 2.3(e).

            "RC TERM LOANS" shall have the meaning ascribed thereto in Section
            2.1(e).

            "RC TERM NOTE" shall have the meaning ascribed thereto in Section
            2.2 (d).

            "REQUIRED LENDERS" shall mean, at any time, Lenders having Term Loan
            Commitments (or after the Closing Date, Term Loans) and Revolving
            Credit Commitments (or after the Termination Date, Revolving Credit
            Loans, RC Term Loans and Revolving Credit Commitment Percentages of
            Swingline Loans and LOC Obligations) representing 51% or more of the
            aggregate of all Term Loan Commitments (or after the Closing Date,
            Term Loans) and Revolving Credit Commitments (or after the
            Termination Date , Revolving Credit Loans, RC Term Loans, Swingline
            Loans and LOC Obligations) in each case outstanding at such time.

            "TERM-OUT LENDERS" shall mean, at any time, those Lenders holding
            Convertible Revolving Credit Loans.

            "TYPE" shall mean as to any Loan, its nature as a Revolving Credit
            Loan, Swingline Loan, Term Loan or an RC Term Loan, or as an
            Alternate Base Rate Loan or a Eurodollar Loan, or both, as the
            context may require.".

      (b) Section 1.1 of the Credit Agreement is hereby amended by deleting the
      word "and" at the end of clause (b)(iv) of the definition of "Interest
      Period" and by replacing the period at the end of clause (b)(v) thereof
      with "; and" and by inserting the following text at the end of the
      definition of "Interest Period":

            "(vi) no Interest Period with respect to an RC Term Loan shall be
            selected which would extend beyond the Maturity Date.".

      (c) Section 2.1 of the Credit Agreement is hereby amended by inserting the
      following text to appear after Section 2.1(d):

            "(e) CONVERSION OF REVOLVING CREDIT LOANS. Subject to the terms and
            conditions hereof and if the Borrower so elects in accordance with
            the terms hereof, each of the Term-out Lenders severally agrees to
            convert its Convertible Revolving Credit Loans then outstanding on
            the Termination Date into term loans maturing on the Maturity Date
            ("RC TERM LOANS"); PROVIDED, that the Borrower may not elect to
            convert outstanding Convertible Revolving Credit Loans into RC Term
            Loans in an amount which exceeds the aggregate principal amount of
            Convertible Revolving Credit Loans outstanding on the third Business
            Day prior to the Termination Date. No portion of the RC Term Loans,
            once repaid, may be reborrowed.".

<Page>

      (d) Section 2.2 of the Credit Agreement is hereby amended by inserting the
      following text to appear after Section 2.2 (c):

            " (d) To the extent requested by any Lender in accordance with
            clause (a) above, Convertible Revolving Credit Loans made by such
            Lender that are converted to RC Term Loans on the Termination Date
            shall be evidenced by one or more promissory notes of the Borrower,
            each substantially in the form attached hereto as EXHIBIT A-3, with
            appropriate insertions as to payee, date and principal amount (an
            "RC TERM NOTE"), payable to the order of such Lender and in an
            aggregate principal amount equal to the aggregate principal amount
            of the RC Term Loans of such Lender then outstanding. Each Lender is
            hereby authorized to record the date, Type and amount of each RC
            Term Loan made by it, each continuation thereof, each conversion of
            all or a portion thereof to another Type, the date and amount of
            each payment or prepayment of principal thereof and, in the case of
            Eurodollar Loans, the length of each Interest Period with respect
            thereto, on the schedule annexed to and constituting a part of its
            RC Term Note, and any such recordation shall constitute PRIMA FACIE
            evidence of the accuracy of the information so recorded absent
            manifest error. Each RC Term Note shall (i) be dated the Termination
            Date, (ii) be stated to mature on the Maturity Date and (iii)
            provide for the payment of interest in accordance with SECTION
            2.9.",

      and by deleting the text "(b) and (c)" which appears at the end of the
      first sentence of Section 2.2 (a) and inserting "(b), (c) and (d)" in
      place thereof.

      (e) Section 2.3 of the Credit Agreement is hereby amended by inserting the
      following text to appear after Section 2.3(d):

            "(e) The Borrower may elect to convert the then outstanding
            Convertible Revolving Credit Loans into RC Term Loans on the
            Termination Date; PROVIDED that the Borrower shall give the
            Administrative Agent an irrevocable notice substantially in the form
            of EXHIBIT B-5 ("NOTICE OF CONVERTIBLE REVOLVING CREDIT LOAN
            CONVERSION") (which notice must be received by the Administrative
            Agent prior to 10:00 a.m., New York City time, three Business Days
            prior to the Termination Date), specifying (i) the amount to be
            converted, (ii) the requested Borrowing Date (which shall be the
            Termination Date), (iii) whether the borrowing is to be of
            Eurodollar Loans, Alternate Base Rate Loans or a combination
            thereof, and (iv) if the conversion is to be entirely or partly of
            Eurodollar Loans, the amounts of such Eurodollar Loans and the
            lengths of the initial Interest Periods therefor. The RC Term Loans
            designated as Eurodollar Loans shall be in amounts equal to
            $5,000,000 or a whole multiple of $1,000,000 in excess thereof. Upon
            receipt of any such notice from the Borrower, the Administrative
            Agent shall promptly notify each Term-out Lender thereof. Each
            Term-out Lender shall be deemed to have made on the Termination Date
            an RC Term Loan with a maturity on the Maturity Date in the amount
            of its pro rata share of outstanding Convertible Revolving Credit
            Loans to be converted in accordance with the terms hereof.".

<Page>

      (f) Section 2.5(a) of the Credit Agreement is hereby deleted in its
      entirety and replaced by inserting the following text:

            "(a) The Term Loan Commitments shall terminate on the Closing Date
            (immediately after funding of the Term Loans). The Revolving Credit
            Commitments shall be reduced to zero on the Termination Date,
            PROVIDED that, if the Borrower elects to convert Convertible
            Revolving Credit Loans to RC Term Loans on the Termination Date
            pursuant to Section 2.3, then (i) that portion of the Revolving
            Credit Commitments constituting the Convertible Revolving Credit
            Commitments shall be permanently reduced to an amount that is equal
            to the aggregate principal amount of the resulting RC Term Loans,
            (ii) the remaining Revolving Credit Commitments shall terminate on
            the Maturity Date and (iii) no additional Loans (other than
            Convertible Revolving Credit Loans converted into RC Term Loans on
            the Termination Date) shall be made on or after the Termination
            Date. The Swingline Commitment shall terminate on the Termination
            Date.".

      (g) Section 2.6 (a) of the Credit Agreement is hereby amended by replacing
      the text "whether the prepayment is of Revolving Credit Loans or Term
      Loans or a combination thereof" with the following text:

            "whether the prepayment is of Revolving Credit Loans, Term
            Loans or a combination thereof or RC Term Loans";

      and by adding the following text to appear before the last sentence of the
      paragraph

            "Any prepayment of RC Term Loans shall automatically reduce the
            Revolving Credit Commitments by an amount equal to such prepayment."

      (h) Section 2.7 of the Credit Agreement is hereby amended by inserting the
      following text after the end of Section 2.7(a)(iii):

            "(iv) no RC Term Loan may be converted into a Eurodollar Loan after
            the date that is one month prior to the Maturity Date,"

      and by replacing the current numeral "(iv)" with "(v)" and the current
      numeral " (v)" with "(vi)" respectively.

      (i) Section 2.7 of the Credit Agreement is hereby amended by deleting the
      word "and" that appears immediately before Section 2.7(b)(iii) and by
      inserting the following text after the words "prior to the Termination
      Date" located in Section 2.7(b)(iii):

            ", and (iv) no Eurodollar Loan which is an RC Term Loan may be
            continued as a Eurodollar Loan after the date that is one month
            prior to the Maturity Date".

<Page>

      (j) Section 2.12 of the Credit Agreement is hereby amended by deleting the
      first sentence in its entirety and by inserting the following text:

            "Each borrowing by the Borrower of Revolving Credit Loans from the
            Lenders hereunder, each payment by the Borrower on account of any
            Commitment Fee hereunder and, except as expressly provided in
            Section 2.5 (a), any reduction of the Revolving Credit Commitments
            of the Lenders shall be made pro rata according to the respective
            Revolving Credit Commitment Percentages of the Lenders.".

      (k) Section 3.16 of the Credit Agreement is hereby amended by inserting
      the following text to appear at the end thereof:

            "The proceeds of RC Term Loans will be used solely to refinance
            Convertible Revolving Credit Loans outstanding on the Termination
            Date as set forth in the Notice of Convertible Revolving Credit Loan
            Conversion provided by the Borrower to the Administrative Agent in
            accordance with Section 2.3 hereof.".

      (l) Section 4.2 of the Credit Agreement is hereby amended by deleting the
      first paragraph in its entirety and replacing it with the following:

            "The agreement of each Lender to make any Loan other than Loans
            constituting an interest rate conversion, continuation or rollover
            of a pre-existing Loan requested to be made by it on any date, the
            agreement of each Term-out Lender to convert Convertible Revolving
            Credit Loans into RC Term Loans, and the agreement of the Issuing
            Lender to issue, amend, renew or extend (and each Lender to
            participate in) any Letter of Credit (the making of any such Loan,
            the conversion of Convertible Revolving Credit Loans into RC Term
            Loans, or the issuance, amendment, renewal or extension of (and the
            participation in) any such Letter of Credit, a "CREDIT EVENT") is
            subject to the satisfaction of the following conditions precedent:".

      (m) Section 6.1 (b) of the Credit Agreement is hereby amended by deleting
      the text "Fifth (5th)" and replacing it with the text "Fifth (5th) and
      thereafter".

      (n) Annex A to the Credit Agreement is hereby amended by inserting the
      following text at the end of Annex A:

            " In addition, notwithstanding the foregoing, the Applicable Margin
            for Eurodollar Loans and the Applicable Margin for Alternate Base
            Rate Loans, in each case which are RC Term Loans, shall be the
            Applicable Margins as set forth in the table above for each Level
            plus 25 basis points."

      (o) The Exhibits to the Credit Agreement are amended by inserting Exhibit
      B-5, attached hereto, to appear after Exhibit B-4 to the Credit Agreement,
      by inserting Exhibit

<Page>

      A-3 attached hereto, to appear after Exhibit A-2 to the Credit Agreement,
      and by deleting Exhibit D to the Credit Agreement and inserting Exhibit D
      attached hereto in place thereof.

      (p) The Table of Contents of the Credit Agreement is amended by inserting
      the text "Exhibit B-5 Form of Notice of Convertible Revolving Credit Loan
      Conversion" to appear after "Exhibit B-4 Form of Notice of Interest Rate
      Conversion" and by inserting the text "Exhibit A-3 Form of RC Term Note"
      to appear after "Exhibit A-2 Form of Term Note".

      (q) Schedule 6.6 to the Credit Agreement is amended by inserting the
      following to appear at the end thereof:

            "10. Preferred Securities Guarantee Agreement, dated as of January
            31, 2002, by and between NorthWestern Corporation, as Guarantor,
            Wilmington Trust Company, as Trustee and NorthWestern Capital
            Financing III, as Issuer, with respect to the Preferred Capital
            Securities referred to in Item 1(e)(ix) of Schedule 6.10.

            11. Common Securities Guarantee Agreement, dated as of January 31,
            2002, by the Borrower."

      (r) Schedule 6.10 to the Credit Agreement is amended by inserting the
      following to appear at the end of item 1(e):

            "(ix) 4,440,000 shares of 8.10% Preferred Capital Securities issued
            under the Amended and Restated Declaration of Trust of NorthWestern
            Capital Financing III, dated as of January 31, 2002.

            (x) $114,433,025 of 8.10% subordinated debt securities due 2032
            issued pursuant to the Fourth Supplement Indenture, dated as of
            January 31, 2002, to the Subordinated Debt Securities Indenture
            dated as of August 1, 1995, as amended, between NorthWestern Public
            Service Company and The Chase Manhattan Bank (North America), as
            Trustee."

            SECTION 3 REPRESENTATIONS AND WARRANTIES. The Borrower represents
and warrants as of the date hereof to each of the Administrative Agent and the
Lenders that after giving effect to this Amendment:

            (a) The representations and warranties set forth in the Credit
      Agreement are true and correct in all material respects except to the
      extent such representations and warranties expressly related to an earlier
      date;

            (b) The Borrower is in compliance in all material respects with all
      other terms and provisions contained in the Credit Agreement required to
      be observed or performed;

<Page>

            (c)   No Default or Event of Default has occurred and is continuing;

            (d) The Borrower has the corporate power and authority to execute,
      deliver and perform this Amendment and has taken all corporate actions
      necessary to authorize the execution, delivery and performance of this
      Amendment;

            (e) This Amendment has been duly executed and delivered on behalf of
      the Borrower by a duly authorized officer or attorney-in-fact of the
      Borrower;

            (f) The execution, delivery and performance of this Amendment will
      not violate any Requirement of Law or any material contractual obligation
      binding on the Borrower or any of its Subsidiaries; and

            (g) No consent or authorization of, filing with, notice to or other
      act by or in respect of, any Governmental Authority or any other Person is
      required in connection with the execution, delivery or performance by the
      Borrower of this Amendment.

The Borrower acknowledges and agrees that the representations and warranties set
forth above shall survive the execution and delivery hereof and shall be deemed
made in the Credit Agreement for purposes of Section 4.2 of the Credit
Agreement.

            SECTION 4 EFFECTIVENESS. This Amendment shall become effective on
the date the Administrative Agent receives (i) counterparts of this Amendment
that, when taken together, bear the signatures of the Borrower and each of the
Lenders constituting the Required Lenders, (ii) for the ratable benefit of each
of Bank of Scotland, CoBank, ACB, and Malayan Banking Berhad, respectively, a
non-refundable fee in an amount equal to 15 basis points (0.15%) of the
aggregate principal amount of the Convertible Revolving Credit Commitment of
each such Lender, if any, and (iii) payment of all of its reasonable
out-of-pocket costs and expenses incurred in connection with this Amendment
(including, without limitation, reasonable fees and expenses of its counsel) for
which invoices have been submitted to the Borrower. The Administrative Agent
shall promptly notify the Borrower and the Lenders of the effective date hereof,
and such notice shall be conclusive and binding on all parties hereto.

            SECTION 5 MISCELLANEOUS. (a) Except as expressly set forth herein,
this Amendment shall not, by implication or otherwise, limit, impair, constitute
a waiver of, or otherwise affect the rights and remedies of the Lenders or the
Administrative Agent, under the Credit Agreement or any other Loan Document, and
shall not alter, modify, amend or in any way affect any of the terms,
conditions, obligations, covenants or agreements contained in the Credit
Agreement or any other Loan Document, all of which are ratified and affirmed in
all respects and shall continue in full force and effect. Nothing herein shall
be deemed to entitle the Borrower to a consent to, or a waiver, amendment,
modification or other change of, any of the terms, conditions, obligations,
covenants or agreements contained in the Credit Agreement in similar or
different circumstances. This Amendment shall apply and be effective only with
respect to the provisions of the Credit Agreement specifically referred to
herein. Upon this Amendment

<Page>

becoming effective as provided herein, the term "Loan Document" as defined in
the Credit Agreement shall include, without limitation, this Amendment.

            (b) As used in the Credit Agreement, the terms "Agreement,"
      "herein," "hereinafter," "hereunder," "hereto," and words of similar
      import shall mean, from and after the date hereof, the Credit Agreement as
      amended by this Amendment.

            (c) Section headings used herein are for convenience of reference
      only and are not to affect the construction of, or to be taken into
      consideration in interpreting, this Amendment.

            (d) THIS AMENDMENT SHALL BE CONSTRUED IN ACCORDANCE WITH AND
      GOVERNED BY THE LAWS OF THE STATE OF NEW YORK. The parties hereto each
      hereby consents to the non-exclusive jurisdiction of the state and federal
      courts of the State of New York and irrevocably waives all right to trial
      by jury in any action, proceeding or counterclaim arising out of or
      relating to this Amendment.

            (e) This Amendment may be executed in any number of counterparts,
      each of which shall be an original but all of which, when taken together,
      shall constitute but one instrument. Delivery of an executed counterpart
      of this Amendment by fax will be deemed as effective delivery of an
      originally executed counterpart.

<Page>

      IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be
duly executed and delivered by their proper and duly authorized officers as of
the day and year first above written.

                                    BORROWER:

                                    NORTHWESTERN CORPORATION

                                    By: /s/ Kipp D. Orme
                                        ----------------------------------
                                        Name:  Kipp D. Orme
                                        Title: Vice President - Finance &
                                               Chief Financial Officer

                                    ADMINISTRATIVE AGENT:

                                    CREDIT SUISSE FIRST BOSTON

                                    By: /s/ Paul L. Colon
                                        ----------------------------------
                                        Name:  Paul L. Colon
                                        Title: Vice President

                                    By: /s/ Vanessa Gomez
                                        ----------------------------------
                                        Name:  Vanessa Gomez
                                        Title: Associate

Convertible Revolving Credit              LENDERS
Commitment:
----------------------------
$ 50,000,000                        CREDIT SUISSE FIRST BOSTON, CAYMAN
 ---------------------------        ISLANDS BRANCH

                                    By: /s/ Paul L. Colon
                                        ----------------------------------
                                        Name:  Paul L. Colon
                                        Title: Vice President

                                    By: /s/ Vanessa Gomez
                                        ----------------------------------
                                        Name:  Vanessa Gomez
                                        Title: Associate

<Page>

Convertible Revolving Credit
Commitment:
----------------------------
$ 50,000,000                        CIBC INC.
 ---------------------------

                                    By: /s/ John P. Burke
                                        ----------------------------------
                                        Name:  John P. Burke
                                        Title: Executive Director
                                               CIBC World Markets Corp.,
                                               as Agent

<Page>

Convertible Revolving Credit
Commitment:
----------------------------
$ 50,000,000                        ABN AMRO BANK  N.V.
 ---------------------------

                                    By: /s/ Thomas J. Sterr
                                        ----------------------------------
                                        Name:  Thomas J. Sterr
                                        Title: Vice President

                                    By: /s/ Frank T.J. Van Deur
                                        ----------------------------------
                                        Name:  Frank T.J. Van Deur
                                        Title: Assistant Vice President

<Page>

Convertible Revolving Credit
Commitment:
----------------------------
$ 50,000,000                        BARCLAYS BANK PLC
 ---------------------------

                                    By: /s/ Sydney G. Dennis
                                        ----------------------------------
                                        Name:  Syndey G. Dennis
                                        Title: Director

<Page>

Convertible Revolving Credit
Commitment:
----------------------------

$ NIL                               BANK OF SCOTLAND
 ---------------------------

                                    By: /s/ Martin Metcalf
                                        ----------------------------------
                                        Name:  Martin Metcalf
                                        Title: Associate Director of
                                               Corporate Banking

<Page>

Convertible Revolving Credit

Commitment:
----------------------------

$ 0                                 CoBANK, ACB
 ---------------------------

                                    By: /s/ Cathleen D. Reed
                                        ----------------------------------
                                        Name:  Cathleen D. Reed
                                        Title: Assistant Vice President

<Page>

Convertible Revolving Credit
Commitment:
----------------------------

$ 25.0 MILLION                      MALAYAN BANKING BERHAD
 ---------------------------

                                    By: /s/ Wan Fadzmi Wan Othman
                                        ----------------------------------
                                        Name:  Wan Fadzmi Wan Othman
                                        Title: General Manager

<Page>

                                                                     EXHIBIT B-5
                                                                       TO CREDIT
                                                                       AGREEMENT

         FORM OF NOTICE OF CONVERTIBLE REVOLVING CREDIT LOAN CONVERSION

Credit Suisse First Boston,
as Administrative Agent for the below-referenced Lenders
Eleven Madison Street
New York, New York 10010-3629
Attention:  [_________________]

                            NORTHWESTERN CORPORATION

Gentlemen and Ladies:

            This Notice of Convertible Revolving Credit Loan Conversion is
delivered to you pursuant to SECTION 2.3 of the Credit Agreement, dated as of
January 14, 2002 (together with all amendments, supplements, amendment and
restatements and other modifications, if any, from time to time made thereto,
the "CREDIT AGREEMENT"), among Northwestern Corporation, a Delaware corporation
(the "BORROWER"), the several banks and other financial institutions from time
to time parties thereto (the "LENDERS"), and Credit Suisse First Boston, as
Administrative Agent for the Lenders. Unless otherwise defined herein or the
context otherwise requires, defined terms used herein have the meanings provided
in the Credit Agreement.

            The Borrower hereby requests that on _____________, _____
(the "Borrowing Date"):(1)

            (1) $ ___________ of the currently outstanding principal amount of
      the Convertible Revolving Credit Loans be converted into RC Term Loans.

            (2) [$___________ of such RC Term Loans shall be Eurodollar
Loans.](2) [The initial Interest Period for such Eurodollar Loans is requested
to be a [one] [two] [three] or [six] month period.]

            [AND/OR]

            [$ ________ of such RC Term Loans shall be Alternate Base
Rate Loans.]

-------------------------------
            (1) The Borrowing Date for the conversion of Convertible
Revolving Credit Loans to RC Term Loans shall be the Termination Date.

            (2) RC Term Loans designated as Eurodollar Loans shall be in amounts
equal to $5,000,000 or a whole multiple of $1,000,000 in excess thereof.

                                   EXHIBIT B-5
<Page>

            (3) The undersigned hereby certifies that, as of the Borrowing Date,
all the applicable conditions contained in Section 4.2 of the Credit Agreement
have been satisfied (or waived pursuant to Section 9.1 of the Credit Agreement).

                                   EXHIBIT B-5
<Page>

            IN WITNESS WHEREOF, the Borrower has caused this Notice of
Convertible Revolving Credit Loan Conversion to be executed and delivered, and
the certification, representations and warranties contained herein to be made,
by an authorized officer this ______ day of ____________, _______.

                                    NORTHWESTERN CORPORATION

                                    By:
                                       ---------------------------
                                       Name:
                                       Title:

                                   EXHIBIT B-5
<Page>

                                                                     EXHIBIT A-3
                                                             TO CREDIT AGREEMENT

                              FORM OF RC TERM NOTE

$__________                                                   New York, New York
                                                              [__________], 200_

            FOR VALUE RECEIVED, the undersigned, NORTHWESTERN CORPORATION, a
Delaware corporation, with its principal place of business at 125 South Dakota
Avenue, Suite 1100, Sioux Falls, South Dakota 57104-6403 (the "BORROWER"),
hereby unconditionally promises to pay to the order of ___________________, with
a place of business at ______________________________ (the "LENDER"), by wire
transfer to the account of Credit Suisse First Boston, as Administrative Agent
(as defined in the Credit Agreement referred to below), with [ACCOUNT BANK], ABA
NO. [o], Account No. [o], Attn: Agency, Reference: [o], or at such other place
or places and to such account or accounts as the Administrative Agent, may
direct from time to time by notice to the Borrower in accordance with the Credit
Agreement (as hereinafter defined), in lawful money of the United States of
America and in immediately available funds, the principal amount of the lesser
of (a) _______________ DOLLARS ($____________) and (b) the aggregate unpaid
principal amount of all RC Term Loans (as defined in the Credit Agreement) made
by the Lender to the undersigned pursuant to the Credit Agreement, payable,
subject to the fourth paragraph hereof, on or before the Maturity Date (as
defined in the Credit Agreement).

            The Borrower hereby unconditionally further agrees to pay interest
in like money on the unpaid principal amount hereof from time to time
outstanding from the date hereof, and, to the extent permitted by applicable
law, on any unpaid interest payable hereon, from the date such interest is due
hereunder, at the applicable rates per annum and on the dates specified in
Section 2.9 of the Credit Agreement until such principal amount and interest, as
applicable, is paid in full (both before and after judgment). The Borrower
agrees to pay costs and expenses, including reasonable attorneys' fees, incurred
in connection with the interpretation or enforcement of this RC Term Note in
accordance with the Credit Agreement.

            This RC Term Note is one of the RC Term Notes referred to in the
Credit Agreement, dated as of January 14, 2002 (as amended, restated,
supplemented or otherwise modified from time to time, the "CREDIT AGREEMENT";
terms defined therein being used herein as defined therein), among the Borrower,
the several banks and other financial institutions parties thereto (including
the Lender), and the Administrative Agent, and is entitled to the benefits
thereof and of the other Loan Documents referred to therein, and is subject to
optional and mandatory prepayment in whole or in part as provided therein. This
RC Term Note is secured as provided in the Loan Documents. Reference is hereby
made to the Loan Documents for a description of the properties and assets in
which a security interest has been granted, the nature and extent of the
security, the terms and conditions upon which the security interests were
granted and the rights of the holder of this RC Term Note in respect thereof.

                                      A-3-1
<Page>

            Upon the occurrence of any one or more of the Events of Default
specified in the Credit Agreement, all amounts remaining unpaid on this RC Term
Note shall become, or may be declared to be, immediately due and payable all as
provided therein.

            The Lender may proceed against the Borrower in such manner as it
deems desirable in accordance with the Credit Agreement. None of the rights or
remedies of the Lender hereunder are to be deemed waived or affected by failure
or delay on the part of the Lender to exercise the same. All remedies conferred
upon the Lender by this RC Term Note or any other instrument or agreement or by
applicable law, shall be cumulative and none is exclusive, and such remedies may
be exercised concurrently or consecutively at the Lender's option.

            All parties now and hereafter liable with respect to this RC Term
Note, whether maker, principal, surety, guarantor, endorser or otherwise, hereby
waive presentment, demand of payment, notice of protest, notice of dishonor and
all other notices of any kind.

            THIS RC TERM NOTE SHALL BE GOVERNED BY, AND CONSTRUED AND
INTERPRETED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD
TO THE PRINCIPLES OF CONFLICT OF LAWS THEREOF (OTHER THAN SECTION 5-1401 OF THE
GENERAL OBLIGATIONS LAW OF THE STATE OF NEW YORK).

                                    NORTHWESTERN CORPORATION

                                    By:
                                       -----------------------------
                                       Name:
                                       Title:

                                     A-3-2
<Page>

                                                                       EXHIBIT D
                                                             TO CREDIT AGREEMENT

                   FORM OF ASSIGNMENT AND ASSUMPTION AGREEMENT

            This Assignment and Assumption Agreement (the "ASSIGNMENT") is dated
as of the Effective Date set forth below and is entered into by and between
[INSERT NAME OF ASSIGNOR] (the "ASSIGNOR") and [INSERT NAME OF ASSIGNEE] (the
"ASSIGNEE"). Capitalized terms used but not defined herein shall have the
meanings given to them in the Credit Agreement identified below (as amended, the
"CREDIT AGREEMENT"), receipt of a copy of which is hereby acknowledged by the
Assignee. The Standard Terms and Conditions set forth in Annex 1 attached hereto
are hereby agreed to and incorporated herein by reference and made a part of
this Assignment as if set forth herein in full.

            For an agreed consideration, the Assignor hereby irrevocably sells
and assigns to the Assignee, and the Assignee hereby irrevocably purchases and
assumes from the Assignor, subject to and in accordance with the Standard Terms
and Conditions and the Credit Agreement, as of the Effective Date inserted by
the Administrative Agent as contemplated below, the interest in and to all of
the Assignor's rights and obligations under the Credit Agreement and any other
documents or instruments delivered pursuant thereto that represents the amount
and percentage interest identified below of all of the Assignor's outstanding
rights and obligations under the respective facilities identified below
(including, to the extent included in any such facilities, letters of credit and
swingline loans) (the "ASSIGNED INTEREST"). Such sale and assignment is without
recourse to the Assignor and, except as expressly provided in this Assignment,
without representation or warranty by the Assignor.

            For the avoidance of doubt, the Assignee expressly acknowledges and
agrees to be bound by the terms of the Credit Agreement applicable to the
Assigned Interest, including, without limitation, the terms of the Credit
Agreement applicable to the Assigned Interest that constitute Convertible
Revolving Credit Commitments or Convertible Revolving Credit Loans.

1.    Assignor:               ______________________________

2.    Assignee:               ______________________________ [and is an
                              Affiliate/Approved Fund(3)]

3.    Borrower:               Northwestern Corporation, a Delaware corporation.

4.    Administrative Agent:   Credit Suisse First Boston, as the administrative
                              agent under the Credit Agreement

5.    Credit Agreement:       Credit Agreement, dated as of January 14, 2002 (as
                              amended, restated, supplemented or otherwise
                              modified from time to time, the "CREDIT
                              AGREEMENT"; terms defined therein being used
                              herein as defined therein), among the Borrower,
                              the several banks and other financial institutions

----------
            (3) Select as applicable.

                                    Exhibit D
<Page>

                              parties thereto (including the Lender), and the
                              Administrative Agent

                                    Exhibit D
<Page>

6.    Assigned Interest:

<Table>
<Caption>

---------------------------------------------------------------------------------
                          Aggregate
                          Amount of           Amount of           Percentage
                      Commitment/Loans    Commitment/Loans       Assigned of
 Facility Assigned     for All Lenders         Assigned       Commitment/loans(4)
 -----------------     ---------------         --------       ----------------
---------------------------------------------------------------------------------
<S>                  <C>                 <C>                        <C>
Revolving Credit     $_____________      $_____________             __________%
Commitment

(of which the
following
constitutes
Convertible
Revolving Credit
Commitment
                     $_____________      $_____________             __________%
---------------------------------------------------------------------------------

Term Loan Commitment $_____________      $_____________             __________%
---------------------------------------------------------------------------------
</Table>

<Table>
<S>                                                      <C>
[Name of Assignor]

            Revised Revolving Credit Commitment Amount:  $______________
            ------------------------------------------
            (of which the following constitutes Revised
            Convertible Revolving Commitment Amount:     $______________)
            ----------------------------------------

            Revised Revolving Commitment Percentage:
            ---------------------------------------       ______________%

            [Revised Term Loan Commitment Amount:        $______________]
             -----------------------------------

            [Revised Term Loan Commitment Percentage:
             ---------------------------------------      ______________%]

            Revised Term Loan Amount:                    $______________

            Fees Assigned (if any):                      $______________

[Name of Assignee]

            New Revolving Credit Commitment Amount:      $______________
            --------------------------------------
            (of which the following constitutes New
            Convertible Revolving Commitment Amount:     $______________)
            ----------------------------------------

            New Revolving Credit Commitment Percentage:
            ------------------------------------------    ______________%

            [New Term Loan Commitment Amount:            $______________]
             -------------------------------
</Table>
--------------------------------------
            (4) Set forth, to at least 9 decimals, as a percentage of the
Commitment/Loans of all Lenders thereunder.

                                   Exhibit D
<Page>

            [New Term Loan Commitment Percentage:          _____________%]
             -----------------------------------

            Revised Term Loan Amount:                    $______________

ADDRESS FOR NOTICES FOR ASSIGNEE:

[Address]
Attention: _____________
Telephone: _____________
Telecopy: ______________
Telephone
Confirmation:___________

EURODOLLAR LENDING OFFICE:

________________________
________________________
________________________

DOMESTIC LENDING OFFICE:

________________________
________________________
________________________

Effective Date: _____________ ___, 20___ [TO BE INSERTED BY ADMINISTRATIVE AGENT
AND WHICH SHALL BE THE EFFECTIVE DATE OF RECORDATION OF TRANSFER IN THE REGISTER
THEREFOR.]

            The terms set forth in this Assignment are hereby agreed to:

                                    ASSIGNOR
                                    [NAME OF ASSIGNOR]

                                    By:______________________________
                                         Name:
                                         Title:

                                    ASSIGNEE
                                    [NAME OF ASSIGNEE]

                                    By:______________________________
                                         Name:
                                         Title:

                                   Exhibit D
<Page>

Consented to and Accepted:

CREDIT SUISSE FIRST BOSTON, as
  Administrative Agent

By_________________________________
    Name:
    Title:

By_________________________________
    Name:
    Title:

[Consented to:](5)

NORTHWESTERN CORPORATION

By_________________________________
    Name:
    Title:

--------------------------------
            (5) To be added only if there is no Event of Default occurring and
in the case where the Assignee is not a Lender or an Affiliate or Approved Fund
thereof.

                                   Exhibit D
<Page>

                                                                         ANNEX 1

                    NORTHWESTERN CORPORATION CREDIT AGREEMENT
                          DATED AS OF JANUARY 14, 2002

                  STANDARD TERMS AND CONDITIONS FOR ASSIGNMENT
                            AND ASSUMPTION AGREEMENT

            1.  REPRESENTATIONS AND WARRANTIES.

            1.1. ASSIGNOR. The Assignor (a) represents and warrants that (i) it
is the legal and beneficial owner of the Assigned Interest, (ii) the Assigned
Interest is free and clear of any lien, encumbrance or other adverse claim and
(iii) it has full power and authority, and has taken all action necessary, to
execute and deliver this Assignment and to consummate the transactions
contemplated hereby; and (b) assumes no responsibility with respect to (i) any
statements, warranties or representations made in or in connection with any
Credit Document, (ii) the execution, legality, validity, enforceability,
genuineness, sufficiency or value of the Credit Agreement or any other
instrument or document delivered pursuant thereto, other than this Assignment
(herein collectively the "CREDIT DOCUMENTS"), or any collateral thereunder,
(iii) the financial condition of the Borrower, any of its Subsidiaries or
Affiliates or any other Person obligated in respect of any Credit Document or
(iv) the performance or observance by the Borrower, any of its Subsidiaries or
Affiliates or any other Person of any of their respective obligations under any
Credit Document.

            1.2. ASSIGNEE. The Assignee (a) represents and warrants that (i) it
has full power and authority, and has taken all action necessary, to execute and
deliver this Assignment and to consummate the transactions contemplated hereby
and to become a Lender under the Credit Agreement, (ii) it meets all
requirements of an Eligible Assignee under the Credit Agreement, (iii) from and
after the Effective Date, it shall be bound by the provisions of the Credit
Agreement and, to the extent of the Assigned Interest, shall have the
obligations of a Lender thereunder, (iv) it has received a copy of the Credit
Agreement, together with copies of the most recent financial statements
delivered pursuant to Section 3.1 thereof, as applicable, and such other
documents and information as it has deemed appropriate to make its own credit
analysis and decision to enter into this Assignment and to purchase the Assigned
Interest on the basis of which it has made such analysis and decision, and (v)
if it is a Foreign Lender, attached to the Assignment is any documentation
required to be delivered by it pursuant to the terms of the Credit Agreement,
duly completed and executed by the Assignee; and (b) agrees that (i) it will,
independently and without reliance on the Administrative Agent, the Assignor or
any other Lender, and based on such documents and information as it shall deem
appropriate at the time, continue to make its own credit decisions in taking or
not taking action under the Credit Documents, and (ii) it will perform in
accordance with their terms all of the obligations which by the terms of the
Credit Documents are required to be performed by it as a Lender.

            2. PAYMENTS. From and after the Effective Date, the Administrative
Agent shall make all payments in respect of the Assigned Interest (including
payments of principal, interest, fees and other amounts) to the Assignor for
amounts which have accrued to but excluding the

                                   Exhibit D
<Page>

Effective Date and to the Assignee for amounts which have accrued from and after
the Effective Date.

            3. GENERAL PROVISIONS. This Assignment shall be binding upon, and
inure to the benefit of, the parties hereto and their respective successors and
assigns. This Assignment may be executed in any number of counterparts, which
together shall constitute one instrument. Delivery of an executed counterpart of
a signature page of this Assignment by telecopy shall be effective as delivery
of a manually executed counterpart of this Assignment. This Assignment shall be
governed by, and construed in accordance with, the law of the State of New York.

                                   Exhibit D<Page>

                                                                     EXHIBIT 4.1

                       AMENDMENT NO. 2 TO RIGHTS AGREEMENT

                  This AMENDMENT NO. 2 (this "Amendment No. 2") is being entered
into as of July 11, 2002, between Veeco Instruments Inc., a Delaware corporation
(the "Company"), and American Stock Transfer and Trust Company, a New York
banking corporation, as rights agent (the "Rights Agent").

                  WHEREAS, the Company and the Rights Agent are parties to a
Rights Agreement, dated as of March 13, 2001, between the Company and the Rights
Agent, as previously amended pursuant to the Amendment to Rights Agreement dated
as of September 6, 2001 (the "Rights Agreement");

                  WHEREAS, simultaneously with the execution of this Amendment
No. 2, the Company is entering into an Agreement and Plan of Merger (the "FEI
Merger Agreement") by and among the Company, Venice Acquisition Corp., an Oregon
corporation and a wholly-owned subsidiary of the Company ("Acquisition") and FEI
Company, an Oregon corporation ("FEI"), pursuant to which Acquisition will merge
with and into FEI with the result that FEI will be the surviving corporation and
shall become a wholly-owned subsidiary of the Company (the "FEI Merger");

                  WHEREAS, pursuant to the FEI Merger, Philips Business
Electronics International B.V. ("Philips"), a significant stockholder of FEI,
will receive approximately 11,198,832 shares of common stock and other
securities of the Company, representing approximately 15% of the shares of
common stock of the Company expected to be outstanding as of the Effective Time
(as defined in the FEI Merger Agreement);

                  WHEREAS, simultaneously with the execution of this Amendment
No. 2, the Company is entering into that certain Investor Agreement dated the
date hereof between the Company, Philips and FEI; and

                  WHEREAS, pursuant to Section 27 of the Rights Agreement, the
Company and the Rights Agent may supplement or amend the Rights Agreement in
accordance with the provisions of Section 27 thereof. The Company now desires to
amend the Rights Agreement as set forth in this Amendment No. 2 and deems such
amendments to be necessary and desirable. Capitalized terms used but not defined
herein shall have the meanings ascribed to such terms in the Rights Agreement.

                  NOW THEREFORE, in consideration of the premises and the mutual
agreement herein set forth, the parties hereby agree as follows:

                  1. AMENDMENT OF SECTION 1(a). Section 1(a) of the Rights
Agreement is hereby amended to add the following sentence at the end thereof:

                  "Notwithstanding anything in this Agreement to the contrary,
                  (A) for so long as none of the KPENV Entities that have
                  reported or

                                        1
<Page>

                  are required to report ownership on Schedule 13G or Schedule
                  13D under the Exchange Act (or any comparable or successor
                  report) takes, or states any intention or desire to take, any
                  action prohibited under any of clauses (a) through (f) of
                  Section 4.01 of the Investor Agreement or (B) (I) if any of
                  the KPENV Entities that have reported or are required to
                  report ownership on Schedule 13G or Schedule 13D under the
                  Exchange Act (or any comparable or successor report) takes, or
                  states any intention or desire to take, any action prohibited
                  under any of clauses (a) through (f) of Section 4.01 of the
                  Investor Agreement and (II) the Board of Directors of the
                  Company in its sole discretion adopts a resolution approving
                  such action (which resolution may be adopted prior to, upon or
                  not later than 15 days following such time as a majority of
                  the Board of Directors of the Company becomes aware of the
                  taking of any such action by any KPENV Entity), none of the
                  KPENV Entities shall be deemed to be an Acquiring Person
                  solely as a consequence of: (i) the execution of the FEI
                  Merger Agreement; (ii) the beneficial ownership by the KPENV
                  Entities of Common Stock or other securities of the Company
                  acquired directly as a result of the FEI Merger; (iii) the
                  beneficial ownership by the KPENV Entities of the Philips
                  Option Shares; (iv) the acquisition by, or beneficial
                  ownership of, the KPENV Entities of a number of shares of
                  Common Stock, in addition to the shares described in clauses
                  (ii) and (iii), that is equal to or less than one percent (1%)
                  of the total number of shares of Common Stock from time to
                  time outstanding, calculated on a primary basis; and/or (v)
                  the transfer of shares of Common Stock received pursuant to
                  (ii), (iii) or (iv) above by and among the KPENV Entities."

                  2. AMENDMENT OF SECTION 1(kk). Section 1(kk) of the Rights
Agreement is hereby amended to add the following proviso at the end thereof:

                  "; PROVIDED FURTHER, HOWEVER, that (A) for so long as none of
                  the KPENV Entities that have reported or are required to
                  report ownership on Schedule 13G or Schedule 13D under the
                  Exchange Act (or any comparable or successor report) takes, or
                  states any intention or desire to take, any action prohibited
                  under any of clauses (a) through (f) of Section 4.01 of the
                  Investor Agreement or (B)(I) if any of the KPENV Entities that
                  have reported or are required to report ownership on Schedule
                  13G or Schedule 13D under the Exchange Act (or any comparable
                  or successor report) takes, or states any intention or desire
                  to take, any action prohibited under any of clauses (a)
                  through (f) of Section 4.01 of the Investor Agreement and (II)
                  the Board of Directors of

                                        2
<Page>

                  the Company in its sole discretion adopts a resolution
                  approving such action (which resolution may be adopted prior
                  to, upon or not later than 15 days following such time as a
                  majority of the Board of Directors of the Company becomes
                  aware of the taking of any such action by any KPENV Entity),
                  no Triggering Event shall result solely by virtue of: (i) the
                  execution of the FEI Merger Agreement; (ii) the beneficial
                  ownership by the KPENV Entities of Common Stock or other
                  securities of the Company acquired directly as a result of the
                  FEI Merger; (iii) the beneficial ownership by the KPENV
                  Entities of the Philips Option Shares; (iv) the acquisition
                  by, or beneficial ownership of, the KPENV Entities of a number
                  of shares of Common Stock, in addition to the shares described
                  in clauses (ii) and (iii), that is equal to or less than one
                  percent (1%) of the total number of shares of Common Stock
                  from time to time outstanding, calculated on a primary basis;
                  and/or (v) the transfer of shares of Common Stock received
                  pursuant to (ii), (iii) or (iv) above by and among the KPENV
                  Entities."

                  3. AMENDMENT OF SECTION 1. Section 1 of the Rights Agreement
is hereby amended to add the following subparagraphs at the end thereof:

                     (pp) "Acquisition" shall mean Venice Acquisition Corp., an
                  Oregon corporation and a wholly-owned subsidiary of the
                  Company.

                     (qq) "FEI" shall mean FEI Company, an Oregon corporation.

                     (rr) "FEI Merger" shall mean the merger of Acquisition with
                  and into FEI pursuant to the FEI Merger Agreement with the
                  result that FEI will be the surviving corporation and shall
                  become a wholly-owned subsidiary of the Company.

                     (ss) "FEI Merger Agreement" shall have the meaning set
                  forth in Section 36 hereof.

                     (tt) "Investor Agreement"shall mean that certain Investor
                  Agreement, dated as of the date hereof, by and between the
                  Company, Philips Business Electronics International B.V. and
                  FEI.

                     (uu) "KPENV Entities" shall mean, collectively, Koninklijke
                  Philips Electronics N.V., a company incorporated under the
                  laws of the Netherlands, and each entity controlled by
                  Koninklijke Philips Electronics N.V.

                                        3
<Page>

                     (vv) "Philips Option Shares" shall mean securities issuable
                  to Philips pursuant to Section 2.03 of the Investor Agreement.

                  4. AMENDMENT OF SECTION 3(a). Section 3(a) of the Rights
Agreement is hereby amended to add the following sentence at the end thereof:

                  "Notwithstanding anything in this Agreement to the
                  contrary,(A) for so long as none of the KPENV Entities that
                  have reported or are required to report ownership on Schedule
                  13G or Schedule 13D under the Exchange Act (or any comparable
                  or successor report) takes, or states any intention or desire
                  to take, any action prohibited under any of clauses (a)
                  through (f) of Section 4.01 of the Investor Agreement or
                  (B)(I) if any of the KPENV Entities that have reported or are
                  required to report ownership on Schedule 13G or Schedule 13D
                  under the Exchange Act (or any comparable or successor report)
                  takes, or states any intention or desire to take, any action
                  prohibited under any of clauses (a) through (f) of Section
                  4.01 of the Investor Agreement and (II) the Board of Directors
                  of the Company in its sole discretion adopts a resolution
                  approving such action (which resolution may be adopted prior
                  to, upon or not later than 15 days following such time as a
                  majority of the Board of Directors of the Company becomes
                  aware of the taking of any such action by any KPENV Entity), a
                  Distribution Date shall not be deemed to have occurred solely
                  by virtue of: (i) the execution of the FEI Merger Agreement;
                  (ii) the beneficial ownership by the KPENV Entities of Common
                  Stock or other securities of the Company acquired directly as
                  a result of the FEI Merger; (iii) the beneficial ownership by
                  the KPENV Entities of the Philips Option Shares; (iv) the
                  acquisition by, or beneficial ownership of, the KPENV Entities
                  of a number of shares of Common Stock, in addition to the
                  shares described in clauses (ii) and (iii), that is equal to
                  or less than one percent (1%) of the total number of shares of
                  Common Stock from time to time outstanding, calculated on a
                  primary basis; and/or (v) the transfer of shares of Common
                  Stock received pursuant to (ii), (iii) or (iv) above by and
                  among the KPENV Entities."

                  5. AMENDMENT OF SECTION 7(a). Section 7(a) of the Rights
Agreement is hereby amended to add the following sentence at the end thereof:

                  "Notwithstanding anything in this Agreement to the
                  contrary,(A) for so long as none of the KPENV Entities that
                  have reported or are required to report ownership on Schedule
                  13G or Schedule 13D under the

                                        4
<Page>

                  Exchange Act (or any comparable or successor report)
                  takes, or states any intention or desire to take, any action
                  prohibited under any of clauses (a) through (f) of Section
                  4.01 of the Investor Agreement or (B)(I) if any of the KPENV
                  Entities that have reported or are required to report
                  ownership on Schedule 13G or Schedule 13D under the Exchange
                  Act (or any comparable or successor report) takes, or states
                  any intention or desire to take, any action prohibited under
                  any of clauses (a) through (f) of Section 4.01 of the Investor
                  Agreement and (II) the Board of Directors of the Company in
                  its sole discretion adopts a resolution approving such action
                  (which resolution may be adopted prior to, upon or not later
                  than 15 days following such time as a majority of the Board of
                  Directors of the Company becomes aware of the taking of any
                  such action by any KPENV Entity), none of the following shall
                  be deemed to be events that cause the Rights to become
                  exercisable pursuant to the provisions of this Section 7 or
                  otherwise: (i) the execution of the FEI Merger Agreement; (ii)
                  the beneficial ownership by the KPENV Entities of Common Stock
                  or other securities of the Company acquired directly as a
                  result of the FEI Merger; (iii) the beneficial ownership by
                  the KPENV Entities of the Philips Option Shares; (iv) the
                  acquisition by, or beneficial ownership of, the KPENV Entities
                  of a number of shares of Common Stock, in addition to the
                  shares described in clauses (ii) and (iii), that is equal to
                  or less than one percent (1%) of the total number of shares of
                  Common Stock from time to time outstanding, calculated on a
                  primary basis; and/or (v) the transfer of shares of Common
                  Stock received pursuant to (ii), (iii) or (iv) above by and
                  among the KPENV Entities."

                  6. ADDITION OF SECTION 36. The Rights Agreement is hereby
amended to add the following new Section 36:

                  "Section 36.  MERGER WITH FEI

                     The Company, Acquisition and FEI have entered into an
                  Agreement and Plan of Merger, dated as of July 11, 2002, as it
                  may be amended from time to time (the "FEI Merger Agreement").
                  Notwithstanding anything in this Agreement to the contrary, if
                  the FEI Merger Agreement shall be terminated for any reason,
                  then, effective as of the time of such termination, the
                  following provisions which were added to this Agreement by
                  Amendment No. 2 to Rights Agreement, dated as of July 11,
                  2002, shall be deemed repealed and deleted without any further
                  action on the part of the Company or the Rights Agent: (1) the
                  last sentence of Section 1(a) hereof, (2) the proviso at the
                  end of Section 1(kk) hereof, (3) subsections (pp), (qq), (rr),
                  (ss), (tt), (uu) and (vv) of Section 1 hereof, (4) the last
                  sentence of Section 3(a) hereof and (5) the last sentence of
                  Section 7(a) hereof."

                  7. EFFECTIVENESS. This Amendment No. 2 shall be deemed
effective as of the date first written above. Except as amended hereby, the
Rights Agreement shall remain in full force

                                       5
<Page>

and effect and shall be otherwise unaffected hereby.

                  8. MISCELLANEOUS. This Amendment No. 2 shall be deemed to be a
contract made under the laws of the State of Delaware and for all purposes shall
be governed by and construed in accordance with the laws of such state
applicable to contracts to be made and performed entirely within such state
without giving effect to the principles of conflict of laws thereof. This
Amendment No. 2 may be executed in any number of counterparts, each of such
counterparts shall for all purposes be deemed to be an original, and all such
counterparts shall together constitute but one and the same instrument. If any
term or other provision of this Amendment No. 2 is determined to be invalid,
illegal or incapable of being enforced by any rule of law, or public policy, all
other terms and provisions of this Amendment No. 2 shall nevertheless remain in
full force and effect and upon such determination that any term or other
provision is invalid, illegal or incapable of being enforced, this Amendment No.
2 and such term or other provision shall be deemed to have been amended so as to
effect the original intent of the parties as closely as possible in a manner
acceptable to the board of directors of the Company.

                                        6
<Page>

                  IN WITNESS WHEREOF, this Amendment No. 2 to Rights Agreement
is executed under seal as of the date first set forth above.

                                 VEECO INSTRUMENTS INC.

                                 By: /s/ Greg Robbins
                                     -------------------------------------------
                                     Name:  Greg Robbins
                                     Title: Vice President and General Counsel

                                 AMERICAN STOCK TRANSFER AND TRUST
                                 COMPANY

                                 By: /s/ Herbert J. Lemmer
                                     -------------------------------------------
                                     Name:  Herbert J. Lemmer
                                     Title:  Vice President and General Counsel

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