Document:

Filed by Bowne Pure Compliance

Exhibit 10.4

EXECUTION COPY

AMENDMENT NO. 2 AND CONSENT

TO

SECOND AMENDED AND RESTATED CREDIT AGREEMENT

This AMENDMENT NO. 2 AND CONSENT to SECOND AMENDED AND RESTATED CREDIT AGREEMENT (the
“Amendment”), dated as of October 1, 2008, is entered into by and among Woodward Governor
Company (the “Company”), the financial institutions party to the below-defined Credit
Agreement (the “Lenders”), and JPMorgan Chase Bank, National Association, as Administrative
Agent (the “Agent”). Each capitalized term used herein and not otherwise defined herein
shall have the meaning given to it in the below-defined Credit Agreement.

WITNESSETH

WHEREAS, the Company, the Lenders, and the Agent are parties to a Second Amended and Restated
Credit Agreement dated as of October 25, 2007 (as the same may be amended, restated, supplemented
or otherwise modified from time to time, the “Credit Agreement”);

WHEREAS, the Company wishes to amend the Credit Agreement in certain respects and the Lenders
and the Agent are willing to amend the Credit Agreement on the terms and conditions set forth
herein;

WHEREAS, the Company has requested certain consents of the Lenders, and the Lenders and the
Agent are willing to provide such consents on the terms and conditions set forth herein;

NOW, THEREFORE, in consideration of the premises set forth above, the terms and conditions
contained herein, and other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, the parties hereto hereby agree as follows:

1. Amendments to Credit Agreement. Effective as of the date first above written, and
subject to the satisfaction of the conditions to effectiveness set forth in Section 3
below, the Credit Agreement is hereby modified as follows:

(a) Section 1.1 of the Credit Agreement is hereby amended to add the following
definitions of “2008 Note Agreement”, “2008 Senior Noteholder”, “2008 Senior
Notes”, “Drawn Foreign Amount”, “Foreign Guarantor”, “Foreign Subsidiary
Investment Limitation”, “Material Acquisition”, “Material Asset Sale”,
“MPC”, “MPC Acquisition”, “MPC Stock Purchase Agreement”,
“Techni-Core” and “Term Loan Credit Facility” in their appropriate alphabetical
order therein:

“2008 Note Agreement” means that certain Note Purchase Agreement, dated
as of October 1, 2008, by and among the Company, as the issuer of the
2008 Senior Notes, and the 2008 Senior Noteholders, as the same may be amended,
restated, supplemented, or otherwise modified from time to time.

 

 

 

“2008 Senior Noteholder” means a Person holding a 2008 Senior Note.

“2008 Senior Notes” means, collectively, the Series B Senior Notes due
2013 in an aggregate initial principal amount of $100,000,000, (ii) the Series C
Senior Notes due 2015 in an aggregate initial principal amount of $50,000,000 and
(iii) the Series D Senior Notes due 2017 in an aggregate initial principal amount of
$100,000,000, in each case as the same may be amended, restated, supplemented or
otherwise modified from time to time, issued by the Company pursuant to the 2008
Note Agreement.

“Drawn Foreign Amount” means on any date the aggregate principal amount
of Obligations outstanding under the Agreement that are owed or guaranteed by the
Foreign Subsidiaries and the aggregate stated face amount of Letters of Credit
issued under the Agreement for the account of Foreign Subsidiaries.

“Foreign Guarantor” is defined in Section 7.3(D)(v).

“Foreign Subsidiary Investment Limitation” means (i) at any time the
Leverage Ratio is equal to or greater than 2.50 to 1.00 but less than 3.00 to 1.00,
aggregate Investments by the Company and its Subsidiaries in Foreign Subsidiaries,
measured by the cash value at the time of Investment, shall not exceed $200,000,000
plus the Drawn Foreign Amount, and (ii) at any time the Leverage Ratio is equal to
or greater than 3.00 to 1.00, aggregate Investments by the Company and its
Subsidiaries in Foreign Subsidiaries, measured by the cash value at the time of
Investment, shall not exceed $100,000,000 plus the Drawn Foreign Amount;
provided, however, for any period during which at least 65% of the
aggregate voting Equity Interests of a Foreign Subsidiary have been pledged (on a
first priority basis and pursuant to agreements, documents and instruments
reasonably acceptable to the Required Lenders and the other requisite creditors
needed to approve amendments or modifications to the Intercreditor Agreement) to
secure the Obligations and the obligations owing under and in connection with the
financings subject to the Intercreditor Agreement, Investments in such Foreign
Subsidiary shall not be included in any determination of compliance with the then
applicable Foreign Subsidiary Investment Limitation; provided,
further that any amounts of cash or property distributed as a dividend or
otherwise from any Foreign Subsidiary to the Company or any Significant Domestic
Incorporated Subsidiary shall be deemed to reduce the aggregate Investments in
Foreign Subsidiaries by such amount. In addition to the foregoing, if, within sixty
(60) days after any Investment is made in a Foreign Subsidiary and (i) a pledge as
described in the first proviso of this definition is entered into with respect to
the Equity Interests of the Foreign Subsidiary into which such Investment is made,
(ii) the Foreign Subsidiary into which such Investment is made becomes a Foreign
Guarantor, or (iii) the Company or any of its Subsidiaries issues additional Equity
Interests, the proceeds of which are used to pay down outstanding Indebtedness
in an amount sufficient to reduce the Leverage Ratio to a level that permits such
Investment, then such Investment shall not be subject to this Foreign Subsidiary
Investment Limitation.

 

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“Material Acquisition” means one or more related acquisitions for net
consideration in excess of $20,000,000.

“Material Asset Sale” means any Asset Sale or series of Asset Sales the
fair market value of which is equal to or greater than $20,000,000 individually or
in the aggregate.

“MPC” means MPC Products Corporation, an Illinois corporation.

“MPC Acquisition” means the acquisition of the Capital Stock of each of
MPC and Techni-Core by the Company pursuant to the terms the MPC Stock Purchase
Agreement.

“MPC Stock Purchase Agreement” means that certain Stock Purchase
Agreement made as of August 19, 2008, by and among the Company, MPC, Techni-Core,
the Successor Trustees of the Joseph M. Roberti Revocable Trust dated December 29,
1992, Maribeth Gentry, as Successor Trustee of the Vincent V. Roberti Revocable
Trust dated April 4, 1991 and the other holders of Capital Stock of MPC and
Techni-Core listed on Schedule I thereto.

“Techni-Core” means Techni-Core, Inc., a Delaware corporation.

“Term Loan Credit Facility” means the $150,000,000 Term Loan Credit
Facility evidenced by the Term Loan Credit Agreement, dated as of October 1, 2008,
by and among the Company, the lenders party thereto and JPMorgan Chase, as
administrative agent thereunder, as the same may be amended, restated, supplemented
or otherwise modified from time to time.

(b) Section 1.1 of the Credit Agreement is hereby amended to amend and restate the
last sentence of the definition of “EBITDA” set forth therein in its entirety as follows:

“EBITDA shall be calculated on a pro forma basis giving effect to
Material Acquisitions and Material Asset Sales on a last twelve (12) months’ basis
using, for any Permitted Acquisition, historical financial statements containing
reasonable adjustments satisfactory to the Administrative Agent, broken down by
fiscal quarter in the Company’s reasonable judgment.”

 

3

 

(c) Section 1.1 of the Credit Agreement is hereby amended to amend and restate the
definitions of “Intercreditor Agreement” and “Loan Documents” set forth therein in
their entirety as follows:

“Intercreditor Agreement” means the Amended and Restated Intercreditor
Agreement, dated as of October 1, 2008 (attached as Exhibit A to
Amendment No. 2 to the Agreement, dated as of October 1, 2008), by and among the
Administrative Agent, the administrative agent under the Term Loan Credit Facility,
the Senior Noteholders, the 2008 Senior Noteholders and any other credit provider to
the Company which may become party thereto from time to time, as the same may be
amended, restated, supplemented, or otherwise modified from time to time.

“Loan Documents” means this Agreement, any promissory notes executed
pursuant to Section 2.12(D), the Domestic Subsidiary Guaranty, the Foreign
Subsidiary Guaranty, the Intercreditor Agreement, and all other documents,
instruments, notes and agreements executed in connection therewith or contemplated
thereby, in each case, as the same may be amended, restated or otherwise modified
and in effect from time to time.

(d) Section 1.1 of the Credit Agreement is hereby amended to amend and restate
clause (i) of the definition of “Permitted Refinancing Indebtedness” in its
entirety as follows:

“(i) does not exceed the aggregate maximum principal amount of and maxumum unused
commitments under (in each case, giving effect to any permitted increases expressly
provided for therein), and accrued interest and any applicable premium and
associated fees and expenses of, the Indebtedness being replaced, renewed,
refinanced or extended,”.

(e) Section 2.10 of the Credit Agreement is hereby amended to delete the reference to
“ABR Loans” therein and to substitute “Floating Rate Loans” therefor.

(f) Section 2.14(E)(ii) of the Credit Agreement is hereby amended to restate the
parenthetical at the end of such clause in its entirety as follows:

“(other than Excluded Taxes, collectively, the “Other Taxes”)”.

(g) Section 5.2 of the Credit Agreement is hereby amended to add the following
sentence at the end of such section:

“For the avoidance of doubt, this Section 5.2 does not apply to the
conversion or continuation of any existing Revolving Loan.”

(h) Section 7.3(A)(xii) of the Credit Agreement is hereby amended and restated in its
entirety as follows:

“(xii) Indebtedness evidenced by the Senior Notes or the 2008 Senior Notes
(including any Indebtedness of the Subsidiary Guarantors arising under a guaranty of
the Senior Notes or the 2008 Senior Notes), and Indebtedness evidenced by the Term
Loan Credit Facility (including any increases pursuant to Section 2.20 thereof and
including any Indebtedness of the Subsidiary Guarantors arising under a guaranty of
the obligations thereunder);”.

 

4

 

(i) Section 7.3(B)(iv) of the Credit Agreement is hereby amended to delete the
reference therein to “Section 7.3(A)(x)” and to substitute “Section 7.3(A)(xiv)”
therefor.

(j) Section 7.3(C)(vii) of the Credit Agreement is hereby amended and restated in its
entirety as follows:

“(vii) Liens arising under or in connection with the Senior Notes, the 2008
Senior Notes, the Term Loan Credit Facility, the 2008 Note Agreement, the Note
Agreement and any other senior (unsubordinated) credit, loan or borrowing facility
or senior (unsubordinated) note purchase agreement similar in form and substance to
any of the foregoing and in a principal amount equal to or greater than $25,000,000,
so long as the creditors under such facility or note purchase agreement agree to be
bound by the terms of the Intercreditor Agreement, the collateral securing the Liens
of such creditors also secures the Obligations, and the Liens of such creditors are
pari passu to the Liens securing the Obligations to the extent that the collateral
securing such Liens also secures the Obligations;”.

(k) Section 7.3(C) of the Credit Agreement is hereby further amended to delete the
proviso in the last paragraph thereof in its entirety and to add the following sentence to the end
of such paragraph:

“Notwithstanding the foregoing, any such agreement, note, indenture or other
instrument may prohibit the creation of a Lien in favor of the Administrative Agent
for the benefit of itself and the Lenders, as collateral for the Obligations, so
long as such prohibition does not apply if the Senior Noteholders, the 2008 Senior
Noteholders, the lenders under the Term Loan Credit Facility and the lenders or
creditors under any other senior (unsubordinated) credit, loan or borrowing facility
or senior (unsubordinated) note purchase agreement similar in form and substance to
any of the foregoing and in a principal amount equal to or greater than $25,000,000,
so long as the creditors under such facility or note purchase agreement agree to be
bound by the terms of the Intercreditor Agreement, shall be provided with a Lien
that is equal and ratable with the Lien provided to the Administrative Agent for the
benefit of itself and the Lenders.”

(l) Section 7.3(D) of the Credit Agreement is hereby amended to (1) amend and restate
clause (v) thereof in its entirety as follows, (2) add the following new clause
(vi), (3) renumber the existing clause (vi) as clause (vii) and amend and
restate it in its entirety as follows, and (4) renumber the existing clauses (vii)
through (x) accordingly:

“(v) Investments in (i) Domestic Incorporated Subsidiaries or (ii) Foreign
Subsidiaries which provide a guarantee (including gross-up amounts for any
withholding taxes or capital charges) of the Obligations (as distinguished from
solely guaranteeing Drawn Foreign Amounts) (each such Foreign Subsidiary, a
“Foreign Guarantor”), so long as any guarantee payments made in connection
with such guarantee can be shared and applied in accordance with the requirements of
the Intercreditor Agreement; provided, however, that any
Investment constituting a Permitted Acquisition shall be governed by clause
(vii) below and not this clause (v);

 

5

 

(vi) Investments in Foreign Subsidiaries which are not Foreign Guarantors,
subject to the Foreign Subsidiary Investment Limitation, if applicable; provided,
that (x) intercompany loans permitted pursuant to Section 7.3(A)(v) and assets of
Foreign Subsidiaries (other than assets directly or indirectly contributed to such
Foreign Subsidiaries by the Company and/or the Significant Domestic Incorporated
Subsidiaries after the Closing Date) which are used to make Investments in other
Foreign Subsidiaries shall not be included in determining compliance with this
clause (vi), (y) prior to consummating any Investment in a Foreign Subsidiary in an
amount in excess of $50,000,000, the Company shall demonstrate to the Administrative
Agent’s satisfaction the Company’s and its Subsidiaries’ pro forma compliance or
planned pro forma compliance with this clause (vi), and (z) any Investment
constituting a Permitted Acquisition shall be governed by clause (vii) below and not
this clause (vi);

(vii) Investments constituting Permitted Acquisitions; provided, that
the Leverage Ratio will not exceed 3.35 to 1.00 after giving effect to any such
Permitted Acquisition in excess of $100,000,000 (as demonstrated by the Company on a
pro forma basis to the Administrative Agent’s satisfaction); provided,
further, that if a Foreign Subsidiary (the “Acquiring Foreign
Subsidiary”) Acquires another Person that becomes a Foreign Subsidiary (the
“Target Sub”) as a result of such Acquisition, and the Equity Interests of
the Target Sub are transferred in their entirety by the Acquiring Foreign Subsidiary
to the Company or a Significant Domestic Incorporated Subsidiary within 60 days
after the date on which the Target Sub is initially Acquired, then the Target Sub
shall be deemed to have been owned at all times by the Company or the applicable
Significant Domestic Incorporated Subsidiary, and, so long as the other conditions
for a Permitted Acquisition have been satisfied and the Leverage Ratio test set
forth above is met, then the Investment in the Target Sub shall be permitted under
this clause (vii)”.

(m) Section 7.3(E) of the Credit Agreement is hereby amended to amend and restate
clause (vi) thereof in its entirety as follows:

“(vi) Contingent Obligations of the Subsidiary Guarantors under any guaranty of the
Indebtedness arising under the Senior Notes, the 2008 Senior Notes, the Note
Agreement, the 2008 Note Agreement, the Term Loan Credit Facility or any other
senior (unsubordinated) credit, loan or borrowing facility or senior
(unsubordinated) note purchase agreement similar in form and substance to any of the
foregoing and in a principal amount equal to or greater than $25,000,000, so long as
the creditors under such facility or note purchase agreement agree to be bound by
the terms of the Intercreditor Agreement,”.

 

6

 

(n) Section 7.3(G) of the Credit Agreement is hereby amended to amend and restate the
last sentence of the introductory paragraph thereof as follows:
“Neither the Company nor any Significant Domestic Subsidiary shall make any Acquisitions,
other than Acquisitions meeting the following requirements or otherwise approved by the
Required Lenders (each such Acquisition constituting a “Permitted Acquisition”):”.

(o) Section 7.3(G) of the Credit Agreement is hereby further amended to add the
following clause immediately following clause (v) of the definition of “Permitted
Acquisition” set forth therein:

“it being acknowledged that the provisions of the foregoing clauses (i)-(v) have
been satisfied as they relate to the MPC Acquisition, and the MPC Acquisition shall
be a Permitted Acquisition.”

(p) Section 7.3(L) of the Credit Agreement is hereby amended to (i) amend and restate
clause (iii) thereof in its entirety as follows, (ii) delete the word “and” immediately
following clause (ix) thereof and substitute a comma (“,”) therefor, (iii) add the word
“and” at the end of clause (x) thereof and (iv) add the following new clause (xi) :

“(iii) the Senior Notes, the 2008 Senior Notes, the Term Loan Credit Facility and any other
senior (unsubordinated) credit, loan or borrowing facility or senior (unsubordinated) note
purchase agreement similar in form and substance to any of the foregoing and in a principal
amount equal to or greater than $25,000,000, so long as the creditors under such facility or
note purchase agreement agree to be bound by the terms of the Intercreditor Agreement,”;

“(xi) restrictions and conditions in any existing or future license agreement with respect
to intellectual property that restricts the ability of any party to such agreement to
create, incur or permit a Lien on such intellectual property.”.

(q) Section 8.1 is hereby amended to amend and restate clauses (A) and (O) thereof in
their entirety as follows:

“(A) Failure to Make Payments When Due. (i) The Company shall fail to
pay when due any of the Obligations consisting of principal with respect to the
Loans or Reimbursement Obligations or (ii) any member of the Obligor Group shall
fail to pay within five (5) days of the date when due any of the other Obligations
under this Agreement or the other Loan Documents.”

“(O) Guarantor Revocation. Except as permitted upon the termination
of such Foreign Subsidiary Guarantor’s parent as a Foreign Subsidiary Borrower, any
guarantor of the Obligations shall terminate or revoke any of its obligations under
the Domestic Subsidiary Guaranty or the Foreign Subsidiary Guaranty.”

2. Consent. Effective as of the date first above written, and subject to the
satisfaction of the conditions to effectiveness set forth in Section 3 below, the
Intercreditor Agreement attached hereto as Exhibit A is hereby approved under the Credit
Agreement.

 

7

 

3. Conditions of Effectiveness. This Amendment shall become effective and be deemed
effective as of the date hereof, if, and only if, the Agent shall have received (i) executed
copies of this Amendment from the Company and the Required Lenders and (ii) fully executed and
effective copies of (a) an amendment to the Note Agreement, (b) an agreement evidencing the Term
Loan Credit Facility, (c) the Intercreditor Agreement and (d) the 2008 Note Agreement, each in form
and substance satisfactory to the Agent.

4. Representations and Warranties of the Company. The Company hereby represents and
warrants as follows:

(a) The Credit Agreement as previously executed and as amended and modified hereby constitutes
the legal, valid and binding obligation of the Company and is enforceable against the Company in
accordance with its terms (except as enforceability may be limited by bankruptcy, insolvency, or
similar laws affecting the enforcement of creditors’ rights generally and general equitable
principles).

(b) Upon the effectiveness of this Amendment, (i) no Default or Unmatured Default has occurred
and is continuing under the terms of the Credit Agreement, (ii) the Company hereby reaffirms its
obligations and liabilities under the Credit Agreement (as amended hereby) and the other Loan
Documents and (iii) all representations and warranties in the Credit Agreement are true and correct
in all material respects as of the date hereof, other than those which expressly speak to an
earlier date (in which case, the Company represents and warrants that such representations and
warranties were true and correct in all material respects as of such earlier date).

5. Effect on the Credit Agreement.

(a) Upon the effectiveness of this Amendment, on and after the date hereof, each reference in
the Credit Agreement to “this Agreement,” “hereunder,” “hereof,” “herein” or words of like import
shall mean and be a reference to the Credit Agreement, as amended and modified hereby.

(b) Except as specifically amended and modified above, the Credit Agreement and all other
documents, instruments and agreements executed and/or delivered in connection therewith shall
remain in full force and effect, and are hereby ratified and confirmed.

(c) The execution, delivery and effectiveness of this Amendment shall neither, except as
expressly provided herein, operate as a waiver of any right, power or remedy of the Lenders or the
Agent, nor constitute a waiver of any provision of the Credit Agreement or any other documents,
instruments and agreements executed and/or delivered in connection therewith.

6. Costs and Expenses. The Company agrees to pay all reasonable costs, fees and
out-of-pocket expenses (including attorneys’ fees and expenses charged to the Agent) incurred by
the Agent in connection with the preparation, arrangement and execution of this Amendment and of
the Agent and the Lenders in connection with the enforcement of this Amendment.

 

8

 

7. Governing Law. This Amendment shall be governed by and construed in accordance
with the internal laws (including 735 ILCS Section 105/5-1 et seq. but otherwise without regards to
the conflicts of laws provisions) of the State of Illinois.

8. Headings. Section headings in this Amendment are included herein for convenience
of reference only and shall not constitute a part of this Amendment for any other purpose.

9. Counterparts. This Amendment may be executed by one or more of the parties to the
Amendment on any number of separate counterparts and all of said counterparts taken together shall
be deemed to constitute one and the same instrument. A facsimile copy of any signature hereto
shall have the same effect as the original of such signature.

10. No Strict Construction. The parties hereto have participated jointly in the
negotiation and drafting of this Amendment. In the event an ambiguity or question of intent or
interpretation arises, this Amendment shall be construed as if drafted jointly by the parties
hereto and no presumption or burden of proof shall arise favoring or disfavoring any party by
virtue of the authorship of any provisions of this Amendment.

The remainder of this page is intentionally blank.

 

9

 

IN WITNESS WHEREOF, this Amendment has been duly executed as of the day and year first above
written.

	 	 	 	 	 
	 	WOODWARD GOVERNOR COMPANY,

as Borrower

 	 
	 	By:  	/s/ Robert F. Weber, Jr.
 	 
	 	 	Name:  	Robert F. Weber, Jr. 	 
	 	 	Title:  	Chief Financial Officer and
Treasurer 	 

Signature Page to

Amendment No. 2 to WGOV Credit Agreement

 

 

 

	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	JPMORGAN CHASE BANK, NATIONAL ASSOCIATION, as
Administrative Agent and as a Lender	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Krys Szremski
 

Name: Krys Szremski
	 	 
	 

	 	 	 	Title: Vice President	 	 

Signature Page to

Amendment No. 2 to WGOV Credit Agreement

 

 

 

	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	WACHOVIA BANK, N.A., as a Lender	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ W. Scott Powell
 

Name: W. Scott Powell
	 	 
	 

	 	 	 	Title: Vice President	 	 

Signature Page to

Amendment No. 2 to WGOV Credit Agreement

 

 

 

	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	WELLS FARGO BANK, N.A., as a Lender	 	 
	 
	 
	 	By:	 	/s/ Corinne M. Potter
 

Name: Corinne M. Potter
	 	 
	 

	 	 	 	Title: Vice President	 	 

Signature Page to

Amendment No. 2 to WGOV Credit Agreement

 

 

 

	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	DEUTSCHE BANK AG NEW YORK BRANCH,

as a Lender	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Ming K. Chu
 

Name: Ming K. Chu
	 	 
	 

	 	 	 	Title: Vice President	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Heidi Sandquist
 

Name: Heidi Sandquist
	 	 
	 

	 	 	 	Title: Vice President	 	 

Signature Page to

Amendment No. 2 to WGOV Credit Agreement

 

 

 

	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	NATIONAL CITY BANK, as a Lender	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Derek R. Cook
 

Name: Derek R. Cook
	 	 
	 

	 	 	 	Title: Senior Vice President	 	 

Signature Page to

Amendment No. 2 to WGOV Credit Agreement

 

 

 

	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	THE NORTHERN TRUST COMPANY, as a Lender	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Jeffrey Clark
 

Name: Jeffrey Clark
	 	 
	 

	 	 	 	Title: Senior Vice President	 	 

Signature Page to

Amendment No. 2 to WGOV Credit Agreement

 

 

 

	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	FIRST NATIONAL BANK, as a Lender	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Paul Benigni
 

Name: Paul Benigni	 	 
	 

	 	 	 	Title: Vice President	 	 

Signature Page to

Amendment No. 2 to WGOV Credit Agreement

 

 

 

EXHIBIT A

[Intentionally Removed]Filed by Bowne Pure Compliance

Exhibit 10.6

EXECUTION COPY

AMENDMENT NO. 1 TO STOCK PURCHASE AGREEMENT

This Amendment No. 1 to Stock Purchase Agreement (the “Amendment”) is effective as of
October 1, 2008, by and among Woodward Governor Company, a Delaware corporation (the
“Buyer”), MPC Products Corporation, an Illinois corporation (“MPC”), Techni-Core,
Inc., a Delaware corporation (“Techni-Core”), The Successor Trustees of the Joseph M.
Roberti Revocable Trust dated December 29, 1992 (the “Joseph M. Roberti Trust”), Maribeth
Gentry, as Successor Trustee of the Vincent V. Roberti Revocable Trust dated April 4, 1991
(together with the Joseph M. Roberti Trust, the “Techni-Core Shareholders”) and the
individuals and entities listed on Schedule I thereto (as amended by this Amendment) (the
“Other MPC Shareholders” and together with Techni-Core and the Techni-Core Shareholders,
the “MPC Shareholders”).

PRELIMINARY STATEMENTS

A. The Buyer, MPC and the MPC Shareholders (collectively, the “Parties”) entered into
that certain Stock Purchase Agreement dated August 19, 2008 (the “SPA”). Capitalized terms
not otherwise defined herein have the meanings ascribed to them in the SPA.

B. The Parties desire to amend the SPA.

AGREEMENT

The parties, intending to be legally bound, agree as follows:

	 	1.	 	Amendment to SPA.

	 	(a)	 	The following sentence is added after the last sentence in the
definition of the term “Indebtedness” in Section 1.2 of the
SPA:

“Solely for purposes of calculating Estimated Indebtedness, Final
Indebtedness, Estimated Net Working Capital and Final Net Working
Capital, (i) Indebtedness shall not include the amount of Cash
required to secure Irrevocable Standby Letter of Credit No.
HACH114321OS, issued by Harris N.A., dated November 8, 2005, in the
amount of $50,000.00, and Irrevocable Standby Letter of Credit No.
HACH127280OS, issued by Harris N.A., dated April 29, 2008, in the
amount of $660,967.00, and (ii) Indebtedness shall include the value
of those payables that would have otherwise been paid in the Ordinary
Course of Business prior to Closing but for the steps taken by the
Companies to fix the outstanding amount under the Companies’ line of
credit with Harris Bank N.A. to accommodate the closing of the
Contemplated Transactions (such payables described in this clause
(ii) are defined as the “Subject Payables”).”

	 	(b)	 	The following definition is added immediately after the
definition of “Straddle Period Tax Matter” in Section 1.2 of
the SPA:

“‘Subject Payables’ is defined in the definition of
Indebtedness.”

 

 

 

	 	(c)	 	The definition of the term “Target Net Working Capital”
in Section 1.2 of the SPA is deleted in its entirety and replaced with
the following “‘Target Net Working Capital’ means $87,404,000.”

	 
	 	(d)	 	Section 2.4(a)(viii) of the SPA is amended to replace
the phrase “certificates of MPC, Techni-Core and the Non-Natural Persons
certifying” with the phrase “certificates of MPC and Techni-Core certifying”.

	 
	 	(e)	 	Section 2.5(b) of the SPA is amended to add the
following at the end of the second sentence, immediately before the final
period: “and in accordance with GAAP as applied consistently with and
reflected in the Companies’ December 31, 2007 Financial Statements and further
adjusted as set forth on Schedule 2.5”.

	 
	 	(f)	 	The following is added after the second sentence of Section
2.5(b) of the SPA, as amended above: “In the event the difference between
(i) the Final Net Working Capital as calculated pursuant to this Section
2.5 is less than (ii) $85,404,000, then the Final Net Working Capital will
be increased by the lesser of (x) 50% of such difference or (y) $625,000.”

	 
	 	(g)	 	The second sentence of Section 2.5(c)(ii) of the SPA is
amended to replace the word “service” with the word “serving.”

	 
	 	(h)	 	The penultimate sentence of Section 2.5(c)(ii) of the
SPA is amended to add the following immediately before the first parenthetical:
“and in accordance with GAAP as applied consistently with and reflected in the
Companies’ December 31, 2007 Financial Statements and further adjusted as set
forth on Schedule 2.5”.

	 
	 	(i)	 	Schedule 2.5 of the SPA is amended by replacing the
line item reference to Target Net Working Capital of $88,760,000 with the line
item reference to Target Net Working Capital of $87,404,000.

	 
	 	(j)	 	The following sentence is added to the end of the first
paragraph of Schedule 2.5:

“For the avoidance of doubt, (i) accrual for earned but unused
employee vacation time for fiscal year 2008 is included in the
calculation of Estimated Net Working Capital and shall be included in
the calculation of Final Net Working Capital and (ii) the Subject
Payables are excluded from the calculation of Estimated Net Working
Capital and shall be excluded from the calculation of Final Net
Working Capital.”

	 	(k)	 	The parenthetical “(A)”, but none of the text following such
parenthetical, is deleted from the second sentence of Section 3.5(a) of
the SPA.

	 	(l)	 	The following is added after the first sentence of Section
3.14(c) of the SPA:

“Notwithstanding anything to the contrary contained herein, the
failure of the Sellers to obtain the Consent (with respect to the
Contemplated Transactions) of any party to an Applicable Contract
with a value of less than $1,000,000 per annum shall not be deemed a
breach of this Section 3.14(c).”

 

 

	 	(m)	 	The following is added as a new Section 3.14(e) of the
SPA following the end of Section 3.14(d):

“(e) The aggregate Liability of the Companies pursuant to the
contract listed on Schedule 3.14(e) shall not exceed $500,000
with respect to any Contract entered into by any Company which was
negotiated in any part prior to the Closing Date.”

	 	(n)	 	The attached Schedule 3.14(e) is added to the Sellers’
Disclosure Schedules, effective as of the date of the SPA.

	 
	 	(o)	 	Section 9.4(c) of the SPA is amended to add “Other than
with respect to a claim involving fraud by any of the Sellers,” at the
beginning of the sentence prior to the phrase “Buyer will not.”

	 
	 	(p)	 	The entire text of Section 9.4 of the SPA, including
the amendment described in paragraph (o) above, is moved in its entirety to
create a new Section 7.5 of the SPA, and existing Section 9.4
of the SPA is deleted in its entirety.

	 
	 	(q)	 	Section 10.2(d) of the SPA is amended to replace the
phrase “or 5.6 then,” with the phrase “or 5.6), then”.

	 
	 	(r)	 	Section 11.1(a) of the SPA is amended to add the word
“any” after the word “to” and before the phrase “Buyer Tax Act”.

	 
	 	(s)	 	The proviso immediately following Section 11.1(b)(iii)
of the SPA is entirely deleted and replaced with the following text:

“provided, however, that the Sellers will not be liable for or pay,
nor shall they have any obligation to indemnify or hold harmless the
Buyer Indemnities from and against any Tax Liability to the extent
(i) such Tax Liability is reflected as a Liability or reserve for Tax
Liabilities in the Final Net Working Capital, (ii) resulted directly
or indirectly from a breach of Section 7.1(n)(ii) by any
Buyer Indemnitee, or (iii) such Tax Liability is attributable to any
Buyer Tax Act.”

	 	(t)	 	The word “and” is stricken after the semi-colon in Section
11.1(d) of the SPA.

	 
	 	(u)	 	The following is inserted in the SPA as Section 11.1(e)
immediately after Section 11.1(d):

	 	 	 	“(e) Any Selling Expenses that were not included in the Final Selling
Expenses; and”

	 	(v)	 	Current Section 11.1(e) of the SPA is moved in its
entirety to become Section 11.1(f) and the parenthetical “(d)”
is replaced with the parenthetical “(e)”.

	 
	 	(w)	 	Clause (i) of the proviso of Section 11.3(a) of the SPA
is amended to replace the phrase “ninety days after the expiration of the
applicable statute of limitations” with the phrase “thirty-six months after the
Closing Date”.

 

 

	 	(x)	 	Section 11.3(f) of the SPA is amended to replace the
phrase “covenant, representation, warranty, covenant or agreement set forth in
Articles 3 and 4 of this Agreement” with the phrase
“representation, warranty, covenant or agreement under this Agreement”.

	 	(y)	 	Schedule I to the SPA is amended to add “Joseph A. Roberti” before “Lisa Downs”.

2. Effect on the SPA. On and after the date hereof, each reference in the SPA to “this
Agreement”, “herein,” “hereof,” “hereunder” or words of similar import shall mean and be a
reference to the SPA as amended hereby.

3. Incorporation of SPA Provisions. The following sections of the SPA are
incorporated by reference and made a part of this Amendment as if fully set forth herein:
Section 13.1 (Notices), Section 13.6 (Severability), Section 13.7
(Assignments, Successors and No Third Party Rights), Section 13.8 (Enforcement of
Agreement), Section 13.9 (Waiver), Section 13.10 (Governing Law; Jurisdiction;
Service of Process) and Section 13.11 (Counterparts).

4. Ratification of the SPA. The SPA, as amended by this Amendment, is hereby ratified
and confirmed in all respects and will remain in full force and effect.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

 

 

The parties have executed and delivered this Amendment on the date indicated in the first
sentence of this Amendment.

	 	 	 	 	 	 	 	 	 
	WOODWARD GOVERNOR COMPANY	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	By:

	 	/s/ A. Christopher Fawzy	 	 	 	 	 	 
	 

	 	 

Name: A. Christopher Fawzy
	 	 	 	 	 	 
	 

	 	Title: Vice President, General Counsel and	 	 	 	 	 	 
	 

	 	          Corporate Secretary	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	MPC PRODUCTS CORPORATION	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	By:

	 	/s/ Kenneth Lowe	 	 	 	 	 	 
	 

	 	 

Name: Kenneth Lowe
	 	 	 	 	 	 
	 

	 	Title: Vice President	 	 	 	 	 	 
	 

	 	          Chief Financial Officer	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	TECHNI-CORE, INC.	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	By:

	 	/s/ Joan H. Roberti	 	 	 	 	 	 
	 

	 	 

Name: Joan H. Roberti
	 	 	 	 	 	 
	 

	 	Title: President	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	SELLERS:	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	THE SUCCESSOR TRUSTEES OF THE JOSEPH M. ROBERTI
REVOCABLE TRUST DATED DECEMBER 29, 1992	 	 	 	MARIBETH R. GENTRY, AS SUCCESSOR
TRUSTEE OF THE VINCENT V. ROBERTI
REVOCABLE TRUST DATED APRIL 4, 1991
	 
	 	 	 	 	 	 	 	 
	By:

	 	/s/ Joan H. Roberti
	 	 	 	By:
	 	/s/ Maribeth R. Gentry
	 

	 	 
	 	 	 	 	 	 
	 

	 	Name: Joan H. Roberti
	 	 	 	 	 	Name: Maribeth R. Gentry
	 

	 	Title: Successor Co-Trustee
	 	 	 	 	 	Title: Successor Trustee

 

 

	 	 	 	 	 	 	 	 	 
	LISA DOWNS AND GREG DOWNS,
 TRUSTEES OF THE
ROBERTI-DOWNS 
CHARITABLE REMAINDER TRUST	 	 	 	KATHY ROBERTI-KIEPURA, AS TRUSTEE OF

THE KATHY ROBERTI-KIEPURA ANNUITY TRUST

FBO MATTHEW ROBERTI KIEPURA
	 
	 	 	 	 	 	 	 	 
	By:

	 	/s/ Lisa Downs
	 	 	 	By:
	 	/s/ Kathy Roberti-Kiepura
	 

	 	 
	 	 	 	 	 	 
	 

	 	Name: Lisa Downs
	 	 	 	 	 	Name: Kathy Roberti-Kiepura
	 

	 	Title: Trustee
	 	 	 	 	 	Title: Trustee
	 
	 	 	 	 	 	 	 	 
	By:

	 	/s/ Greg Downs	 	 	 	 	 	 
	 

	 	 

Name: Greg Downs
	 	 	 	 	 	 
	 

	 	Title: Trustee	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	KATHY ROBERTI-KIEPURA, AS TRUSTEE 
OF THE KATHY
ROBERTI-KIEPURA ANNUITY 
TRUST FBO LAURA ROBERTI
KIEPURA	 	 	 	MARIBETH ROBERTI GENTRY, AS TRUSTEE OF

THE MARIBETH ROBERTI GENTRY REVOCABLE

TRUST DATED AUGUST 7, 2001
	 
	 	 	 	 	 	 	 	 
	By:

	 	/s/ Kathy Roberti-Kiepura
	 	 	 	By:
	 	/s/ Maribeth Roberti Gentry
	 

	 	 
	 	 	 	 	 	 
	 

	 	Name: Kathy Roberti-Kiepura
	 	 	 	 	 	Name: Maribeth Roberti Gentry
	 

	 	Title: Trustee
	 	 	 	 	 	Title: Trustee
	 
	 	 	 	 	 	 	 	 
	MARIBETH R. GENTRY, TRUSTEE OF THE 
MARIBETH R.
GENTRY GRANTOR 

RETAINED ANNUITY TRUST	 	 	 	RENEE R. LEGAULT, TRUSTEE OF THE 

RENEE
R. LEGAULT GRANTOR 

RETAINED ANNUITY
TRUST
	 
	 	 	 	 	 	 	 	 
	By:

	 	/s/ Maribeth R. Gentry
	 	 	 	By:
	 	/s/ Renee R. Legault
	 

	 	 
	 	 	 	 	 	 
	 

	 	Name: Maribeth R. Gentry
	 	 	 	 	 	Name: Renee R. Legault
	 

	 	Title: Trustee
	 	 	 	 	 	Title: Trustee
	 
	 	 	 	 	 	 	 	 
	ROSE R. BASILE, AS TRUSTEE OF THE 

RALPH T.
BASILE TESTAMENTARY CREDIT 
SHELTER TRUST U/W
DATED JULY 9, 2002	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	By:

	 	/s/ Rose R. Basile	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	Name: Rose R. Basile	 	 	 	 	 	 
	 

	 	Title: Trustee	 	 	 	 	 	 

 

 

	 	 	 	 	 
	/s/ Joseph A. Roberti

	 	 	 	/s/ Lisa Downs
	 

	 	 	 	 
	Joseph A. Roberti

	 	 	 	Lisa Downs
	 
	 	 	 	 
	/s/ Lynne Rittiner

	 	 	 	/s/ Rene Rittiner
	 

	 	 	 	 
	Lynne Rittiner

	 	 	 	Rene Rittiner
	 
	 	 	 	 
	/s/ Kathy Roberti-Kiepura

	 	 	 	/s/ Donna Schroeder
	 

	 	 	 	 
	Kathy Roberti-Kiepura

	 	 	 	Donna Schroeder
	 
	 	 	 	 
	/s/ Renee Legault

	 	 	 	/s/ Anne Conklin
	 

	 	 	 	 
	Renee Legault

	 	 	 	Anne Conklin
	 
	 	 	 	 
	/s/ Rose Basile

	 	 	 	/s/ Michael Roberti
	 

	 	 	 	 
	Rose Basile

	 	 	 	Michael Roberti
	 
	 	 	 	 
	/s/ Dorothy Roberti

	 	 	 	/s/ Dominick Roberti
	 

	 	 	 	 
	Dorothy Roberti

	 	 	 	Dominick Roberti
	 
	 	 	 	 
	/s/ Jacqueline Roberti

	 	 	 	/s/ David Nemchick _
	 

	 	 	 	 
	Jacqueline Roberti

	 	 	 	David Nemchick
	 
	 	 	 	 
	/s/ Lillian Nemchick

	 	 	 	/s/ Arlene Gail Campbell
	 

	 	 	 	 
	Lillian Nemchick

	 	 	 	Arlene Gail Campbell

 

 

Schedule 3.14(e)

[Intentionally Removed]

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