THIS LOAN AGREEMENT ( “Agreement” ) is made and entered into as of March 31, 2008 by and
between COHERENT, INC., a Delaware corporation ( “Borrower” ), and UNION BANK OF
CALIFORNIA, N.A., a national banking association ( “Bank” ).
SECTION 1. THE CREDIT
1.1 CREDIT FACILITIES
1.1.1 The Revolving Loan. Bank will loan to Borrower an amount not to exceed Forty Million and
00/100 Dollars ($40,000,000.00) outstanding in the aggregate at any one time (the “Revolving Loan” ). The
proceeds of the Revolving Loan shall be used for Borrower’s general working capital and corporate purposes.
Borrower may borrow, repay and reborrow all or part of the Revolving Loan in amounts of not less than One
Million and 00/100 Dollars ($1,000,000.00) in accordance with the terms of the Revolving Note (defined
below). All borrowings of the Revolving Loan must be made before March 31, 2010, at which time all unpaid
principal and interest of the Revolving Loan shall be due and payable. The Revolving Loan shall be evidenced by
Bank’s standard form of commercial promissory note (the “Revolving Note” ). Bank shall enter each amount
borrowed and repaid in Bank’s records and such entries shall be deemed correct absent manifest error.
Omission of Bank to make any such entries shall not discharge Borrower of its obligation to repay in full with
interest all amounts borrowed.
1.1.1 (a) The Commercial L/C Sublimit. As a sublimit under the Revolving Loan, Bank shall
issue, for the account of Borrower, one or more irrevocable commercial letters of credit (individually, a
“Commercial L/C” ) with transport documents presented in a full set to Bank (and, in case of airway
bills, consigned to Bank). The aggregate amount available to be drawn under all outstanding Commercial
L/Cs and the aggregate amount of unpaid reimbursement obligations under drawn Commercial L/Cs
(collectively, the “Commercial L/C Exposure” ) plus the Standby L/C Exposure (