Exhibit 10.1
FIRST AMENDMENT TO CREDIT AGREEMENT AND WAIVER
     THIS FIRST AMENDMENT TO CREDIT AGREEMENT AND WAIVER (the “Amendment”),
dated as of August 31, 2005, is to that certain Credit Agreement dated as of
December 6, 2004 (as it may be amended, modified, supplemented or restated from
time to time, the “Credit Agreement”), by and among GENCORP INC., an Ohio
corporation (the “Borrower”), the subsidiaries of the Borrower from time to time
party thereto (the “Guarantors”), the lenders from time to time party thereto
(the “Lenders”), and WACHOVIA BANK, NATIONAL ASSOCIATION, as administrative
agent for the Lenders (the “Administrative Agent”). Capitalized terms used
herein but not otherwise defined shall have the meanings ascribed thereto in the
Credit Agreement.
W I T N E S S E T H
     WHEREAS, the Lenders have established credit facilities for the benefit of
the Borrower pursuant to the terms of the Credit Agreement;
     WHEREAS, the Borrower has requested a certain amendment and a waiver to the
Credit Agreement;
     WHEREAS, the Required Lenders are willing to amend the Credit Agreement and
provide such waiver, subject to the terms and conditions hereof.
     NOW, THEREFORE, IN CONSIDERATION of the agreements herein contained, the
parties hereby agree as follows:
SECTION 1
AMENDMENT
     1.1 The definition of “Permitted Investments” found in Section 1.1 of the
Credit Agreement is hereby amended by re-ordering clause (m) to (n) and adding a
new clause (m) to read as follows and by making the appropriate grammatical and
punctuation changes thereto:
     (m) loans in connection with the AFC Sale in an amount not to exceed the
lesser of (i) $30,000,000 and (ii) 25% of the total consideration for the AFC
Sale; provided that such loans and advances shall be specifically subordinated
in right of payment to the prior payment of the Credit Party Obligations and
contain subordination and other terms acceptable to the Administrative Agent.
SECTION 2
WAIVER
     2.1 The Required Lenders hereby waive compliance with the Fixed Charge
Coverage Ratio from June 1, 2005 to (but not including) November 30, 2005 (the
“Subject Period”);

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provided, that the Borrower shall demonstrate in the certificate of a
Responsible Officer delivered pursuant to Section 5.2(b) for the fiscal quarter
ending August 31, 2005 that the Fixed Charge Coverage Ratio for the four quarter
period ending on such date, calculated on a pro forma basis after giving effect
to the AFC Sale, shall be greater than or equal to 1.10 to 1.0 and failure to so
demonstrate shall make this waiver null and void. Except for the specific,
one-time limited waiver set forth above, nothing set forth herein or
contemplated hereby is intended to constitute a waiver of (i) any rights or
remedies available to the Lenders or the Administrative Agent under the Credit
Agreement or any other Credit Document or under applicable law (all of which
rights and remedies are hereby expressly reserved by the Lenders and the
Administrative Agent) or (ii) the Credit Parties’ obligation to comply fully
with any duty, term, condition, obligation or covenant contained in the Credit
Agreement and the other Credit Documents.
SECTION 3
CONDITIONS TO EFFECTIVENESS
     3.1 This Amendment shall be and become effective as of the date first above
written upon receipt by the Administrative Agent of the following:
     (a) counterparts of this Amendment, which shall have been duly executed by
the Borrower and the Required Lenders; and
     (b) projected Fixed Charge Coverage Ratio calculations for the period
ending August 31, 2005, in form and substance satisfactory to the Required
Lenders.
SECTION 4
MISCELLANEOUS
     4.1 Representations and Warranties. Each of the Credit Parties represents
and warrants as follows as of the date hereof, after giving effect to this
Amendment:
     (a) It has taken all necessary action to authorize the execution, delivery
and performance of this Amendment.
     (b) This Amendment has been duly executed and delivered by such Person and
constitutes such Person’s valid and legally binding obligations, enforceable in
accordance with its terms, except as such enforceability may be subject to
(i) bankruptcy, insolvency, reorganization, fraudulent conveyance or transfer,
moratorium or similar laws affecting creditors’ rights generally and
(ii) general principles of equity (regardless of whether such enforceability is
considered in a proceeding at law or in equity).
     (c) No consent, approval, authorization or order of, or filing,
registration or qualification with, any Governmental Authority or third party is
required in connection with the execution, delivery or performance by such
Person of this Amendment.

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     (d) The representations and warranties set forth in Article III of the
Credit Amendment are true and correct as of the date hereof (except for those
which expressly relate to an earlier date).
     4.2 Instrument Pursuant to Credit Agreement. This Amendment is a Credit
Document executed pursuant to the Credit Agreement and shall be construed,
administered and applied in accordance with the terms and provisions of the
Credit Agreement.
     4.3 Acknowledgement of Guarantors; Ratification of Obligations. The
Guarantors acknowledge and consent to all of the terms and conditions of this
Amendment and agree that this Amendment and all documents executed in connection
herewith do not operate to reduce or discharge the Guarantors’ obligations under
the Credit Documents. Except as modified hereby, the Credit Agreement is
ratified and affirmed by the Credit Parties, and shall continue to be in full
force and effect in accordance with its respective terms.
     4.4 Survival. Except as expressly modified and amended in this Amendment,
all of the terms and provisions and conditions of each of the Credit Documents
shall remain unchanged.
     4.5 Expenses. The Borrower agrees to pay all reasonable costs and expenses
of the Administrative Agent in connection with the preparation, execution and
delivery of this Amendment, including without limitation the reasonable expenses
of the Administrative Agent’s legal counsel.
     4.6 Entirety. This Amendment and the other Credit Documents embody the
entire agreement among the parties hereto and supersede all prior agreements and
understandings, oral or written, if any, relating to the subject matter hereof.
     4.7 Counterparts/Telecopy. This Amendment may be executed in any number of
counterparts, each of which when so executed and delivered shall be an original,
but all of which shall constitute one and the same instrument. Delivery of
executed counterparts of this Amendment by telecopy shall be effective as an
original and shall constitute a representation that an original shall be
delivered.
     4.8 Governing Law. THIS AGREEMENT SHALL BE DEEMED TO BE A CONTRACT UNDER
AND GOVERNED BY THE INTERNAL LAWS OF THE STATE OF NEW YORK WITHOUT GIVING EFFECT
TO THE CONFLICT OF LAWS PRINCIPLES THEREOF (OTHER THAN SECTIONS 5-1401 AND
5-1402 OF THE NEW YORK GENERAL OBLIGATIONS LAW).
     4.9 Successors and Assigns. This Amendment shall be binding upon and inure
to the benefit of the Credit Parties, the Administrative Agent, the Lenders and
their respective successors and assigns.

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     4.10 Waiver of Jurisdiction; Service of Process; Waiver of Jury Trial. The
jurisdiction, service of process and waiver of jury trial provisions set forth
in Sections 9.13 and 9.16 of the Credit Agreement are hereby incorporated by
reference, mutatis mutandis.
[Signature Pages Follow]

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GENCORP INC.
FIRST AMENDMENT AND WAIVER AGREEMENT
     The parties hereto have duly executed this Amendment as of the date first
above written.

                  BORROWER:   GENCORP INC.,             an Ohio corporation    
   
 
               
 
  By:   /s/ Terry L. Hall        
 
               
 
  Name:   Terry L. Hall        
 
  Title:   Chairman        
 
                GUARANTORS:   AEROJET-GENERAL CORPORATION,         an Ohio
corporation        
 
               
 
  By:   /s/ Terry L. Hall        
 
               
 
  Name:   Terry L. Hall        
 
  Title:   Chairman        
 
                    AEROJET ORDNANCE TENNESSEE, INC.,         a Tennessee
corporation    
 
               
 
  By:   /s/ Michael F. Martin        
 
               
 
  Name:   Michael F. Martin        
 
  Title:   Chairman        
 
                    AEROJET FINE CHEMICALS LLC,         a Delaware limited
liability company    
 
               
 
  By:   /s/ Joseph Carleone        
 
               
 
  Name:   Joseph Carleone        
 
  Title:   President        

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GENCORP INC.
FIRST AMENDMENT AND WAIVER AGREEMENT

                  LENDERS:   WACHOVIA BANK, NATIONAL ASSOCIATION,        
individually in its capacity as a         Lender and in its capacity as
Administrative Agent    
 
               
 
  By:   /s/ Scott Santa Cruz        
 
               
 
  Name:   Scott Santa Cruz        
 
  Title:   Director        

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GENCORP INC.
FIRST AMENDMENT AND WAIVER AGREEMENT

                      AVL CBNA Loan Funding LLC for itself or as         Agent
for AVL CFPI Loan Funding LLC         as a Lender    
 
               
 
  By:   /s/ Jane Haack        
 
               
 
  Name:   Jane Haack        
 
  Title:   as Attorney-in-Fact        

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GENCORP INC.
FIRST AMENDMENT AND WAIVER AGREEMENT

                      The Bank of New York         as a Lender    
 
               
 
  By:   /s/ David Molnar        
 
               
 
  Name:   David Molnar        
 
  Title:   Assistant Vice President        

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GENCORP INC.
FIRST AMENDMENT AND WAIVER AGREEMENT

                      The Bank of Nova Scotia         as a Lender    
 
               
 
  By:   Mark Sparrow        
 
               
 
  Name:   Mark Sparrow        
 
  Title:   Director        

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GENCORP INC.
FIRST AMENDMENT AND WAIVER AGREEMENT

                      Bayerische Hypo- und Vereinsbank AG, New York Branch    
as a Lender    
 
               
 
  By:   /s/ Gavin Burke        
 
               
 
  Name:   Gavin Burke        
 
  Title:   Director        
 
               
 
  By:   /s/ Sven Schuessler        
 
               
 
  Name:   Sven Schuessler        
 
  Title:   Associate Director        

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GENCORP INC.
FIRST AMENDMENT AND WAIVER AGREEMENT

                      CELERITY CLO LIMITED         By: TCW Advisors, Inc.      
  as Agent         as a Lender    
 
               
 
  By:   /s/ G. Wayne Hosang        
 
               
 
  Name:   G. Wayne Hosang        
 
  Title:   Vice President        
 
               
 
  By:   /s/ Stephen Suo        
 
               
 
  Name:   Stephen Suo        
 
  Title:   Vice President        

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GENCORP INC.
FIRST AMENDMENT AND WAIVER AGREEMENT

                      EMERALD ORCHARD LIMITED         as a Lender    
 
               
 
  By:   /s/ Denton Robinson        
 
               
 
  Name:   Denton Robinson        
 
  Title:   Loans Officer        

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GENCORP INC.
FIRST AMENDMENT AND WAIVER AGREEMENT

                      FIRST 2004-I CLO, LTD         By: TCW Advisors, Inc.      
  its Collateral Manager         as a Lender    
 
               
 
  By:   /s/ G. Wayne Hosang        
 
               
 
  Name:   G. Wayne Hosang        
 
  Title:   Vice President        
 
               
 
  By:   /s/ Stephen Suo        
 
               
 
  Name:   Stephen Suo        
 
  Title:   Vice President        

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GENCORP INC.
FIRST AMENDMENT AND WAIVER AGREEMENT

                      FIRST 2004-II CLO, LTD.         By: TCW Advisors, Inc.    
    its Collateral Manager         as a Lender    
 
               
 
  By:   /s/ G. Wayne Hosang        
 
               
 
  Name:   G. Wayne Hosang        
 
  Title:   Vice President        
 
               
 
  By:   /s/ Stephen Suo        
 
               
 
  Name:   Stephen Suo        
 
  Title:   Vice President        

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GENCORP INC.
FIRST AMENDMENT AND WAIVER AGREEMENT

                      Highland Floating Rate Advantage Fund     By: Highland
Capital Management, L.P., as Collateral Manager     By: Strand Advisors, Inc.,
Its Investment Advisor     as a Lender    
 
               
 
  By:   /s/ Joe Dougherty        
 
               
 
  Name:   Joe Dougherty        
 
  Title:   Senior Vice President        
 
      Strand Advisors, Inc., General Partner of        
 
      Highland Capital Management, L.P.        

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GENCORP INC.
FIRST AMENDMENT AND WAIVER AGREEMENT

                      Highland Legacy Limited         By: Highland Capital
Management, L.P., as Collateral Manager     By: Strand Advisors, Inc., Its
Investment Advisor     as a Lender    
 
               
 
  By:   /s/ Chad Schramek        
 
               
 
  Name:   Chad Schramek        
 
  Title:   Assistant Treasurer        
 
      Strand Advisors, Inc., General Partner of        
 
      Highland Capital Management, L.P.        
     

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GENCORP INC.
FIRST AMENDMENT AND WAIVER AGREEMENT

                      Jefferson – Pilot Life Insurance Company         By: TCW
Advisors, Inc.         as its Investment Advisor         as a Lender    
 
               
 
  By:   /s/ G. Wayne Hosang        
 
               
 
  Name:   G. Wayne Hosang        
 
  Title:   Vice President        
 
               
 
  By:   /s/ Stephen Suo        
 
               
 
  Name:   Stephen Suo        
 
  Title:   Vice President        

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GENCORP INC.
FIRST AMENDMENT AND WAIVER AGREEMENT

                      JPMORGAN CHASE BANK, N.A.         as a Lender    
 
               
 
  By:   /s/ Clara Sohan        
 
               
 
  Name:   Clara Sohan        
 
  Title:   Vice President        

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GENCORP INC.
FIRST AMENDMENT AND WAIVER AGREEMENT

                      NATIONAL CITY BANK         as a Lender    
 
               
 
  By:   /s/ Kenneth M. Blackwell        
 
               
 
  Name:   Kenneth M. Blackwell        
 
  Title:   Vice President        

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GENCORP INC.
FIRST AMENDMENT AND WAIVER AGREEMENT

                      Southfork CLO, Ltd.     By: Highland Capital Management,
L.P., as Collateral Manager     By: Strand Advisors, Inc., Its General Partner  
  as a Lender
 
               
 
  By:   /s/ Chad Schramek        
 
               
 
  Name:   Chad Schramek        
 
  Title:   Assistant Treasurer        
 
      Strand Advisors, Inc., General Partner of        
 
      Highland Capital Management, L.P.        

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GENCORP INC.
FIRST AMENDMENT AND WAIVER AGREEMENT

                      TCW SELECT LOAN FUND, LIMITED         By: TCW Advisors,
Inc. as its         Collateral Manager         as a Lender    
 
               
 
  By:   /s/ G. Wayne Hosang        
 
               
 
  Name:   G. Wayne Hosang        
 
  Title:   Vice President        
 
               
 
  By:   /s/ Stephen Suo        
 
               
 
  Name:   Stephen Suo        
 
  Title:   Vice President        

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GENCORP INC.
FIRST AMENDMENT AND WAIVER AGREEMENT

                      TCW Senior Secured Loan Fund         By: TCW Advisors,
Inc.         as its Investment Advisor         as a Lender    
 
               
 
  By:   /s/ G. Wayne Hosang        
 
               
 
  Name:   G. Wayne Hosang        
 
  Title:   Vice President        
 
               
 
  By:   /s/ Stephen Suo        
 
               
 
  Name:   Stephen Suo        
 
  Title:   Vice President        

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GENCORP INC.
FIRST AMENDMENT AND WAIVER AGREEMENT

                      VELOCITY CLO, LTD.         By: TCW Advisors, Inc.        
its Collateral Manager         as a Lender    
 
               
 
  By:   /s/ G. Wayne Hosang        
 
               
 
  Name:   G. Wayne Hosang        
 
  Title:   Vice President        
 
               
 
  By:   /s/ Stephen Suo        
 
               
 
  Name:   Stephen Suo        
 
  Title:   Vice President        

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GENCORP INC.
FIRST AMENDMENT AND WAIVER AGREEMENT

                      WELLS FARGO BANK, N.N.         as a Lender    
 
               
 
  By:   /s/ Gregory J. Mellor        
 
               
 
  Name:   Gregory J. Mellor        
 
  Title:   Vice President        

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GENCORP INC.
FIRST AMENDMENT AND WAIVER AGREEMENT

                      WIND River CLO I Ltd.         By: McDonnell Investment
Management, LLC, as Manager     as a Lender    
 
               
 
  By:   /s/ Kathleen A. Zarn        
 
               
 
               
 
  Name:   Kathleen A. Zarn        
 
  Title:   Vice President        

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