Amendment No. 2 to Business Loan Agreement between Bank of America, N.A. and Cohu, Inc.

Summary

This amendment, dated April 28, 2000, updates the existing Business Loan Agreement between Bank of America, N.A. and Cohu, Inc. Key changes include renaming the "Reference Rate" to "Prime Rate," extending the loan maturity date to May 1, 2001, adjusting a financial ratio requirement, and increasing the maximum allowable debt from $130 million to $150 million. All other terms of the original agreement remain unchanged. Both parties confirm that the amendment is properly authorized and does not conflict with other obligations.

EX-10.1 2 ex10-1.txt EXHIBIT 10.1 1 Exhibit 10.1 ================================================================================ AMENDMENT TO DOCUMENTS AMENDMENT NO. 2 TO BUSINESS LOAN AGREEMENT This Amendment No. 2 (the "Amendment") dated as of April 28, 2000, is between Bank of America, N.A. (the "Bank"), formerly Bank of America NT&SA, and Cohu, Inc. (the "Borrower"). RECITALS A. The Bank and the Borrower entered into a certain Business Loan Agreement dated as of June 15, 1998, as previously amended (the "Agreement"). B. The Bank and the Borrower desire to further amend the Agreement. AGREEMENT 1 DEFINITIONS. Capitalized terms used but not defined in this Amendment shall have the meaning given to them in the Agreement. 2 AMENDMENTS. The Agreement is hereby amended as follows: 2.1 The Bank has changed the name of the "Reference Rate" to the "Prime Rate." The term "Reference Rate" is therefore amended to read "Prime Rate" throughout the Agreement. 2.2 In Paragraph 1.2 of the Agreement, the date "MAY 1, 2001" is substituted for the date "MAY 1, 2000". 2.3 In Paragraph 6.3 of the Agreement, the ratio "2.0:1.0" is substituted for the ratio "2.25:1.0". 2.4 In Paragraph 6.4 of the Agreement, the amount "ONE HUNDRED FIFTY MILLION DOLLARS ($150,000,000)" is substituted for the amount "ONE HUNDRED THIRTY MILLION DOLLARS ($130,000,000)". 3 REPRESENTATIONS AND WARRANTIES. When the Borrower signs this Amendment, the Borrower represents and warrants to the Bank that: (a) there is no event which is, or with notice or lapse of time or both would be, a default under the Agreement except those events, if any, that have been disclosed in writing to the Bank or waived in writing by the Bank, (b) the representations and warranties in the Agreement are true as of the date of this Amendment as if made on the date of this Amendment, (c) this Amendment is within the Borrower's powers, has been duly authorized, and does not conflict with any of the Borrower's organizational papers, and (d) this Amendment does not conflict with any law, agreement, or obligation by which the Borrower is bound. 4 EFFECT OF AMENDMENT. Except as provided in this Amendment, all of the terms and conditions of the Agreement shall remain in full force and effect. This Amendment is executed as of the date stated at the beginning of this Amendment. BANK OF AMERICA, N.A. Cohu Inc. /s/ Paul M. Tuomainen /s/ John H. Allen - ----------------------------------- ------------------------------------ By: Paul M. Tuomainen, Jr., By: John H. Allen, Vice President Vice President/Finance & Chief Financial Officer