Document:

exv10w3

 

Exhibit 10.3

AMENDMENT NO . 2

     This AMENDMENT NO. 2 (this “Amendment”), is dated as of January 14, 2005, and is
entered into by and among FLOWSERVE RECEIVABLES CORPORATION, a Delaware corporation (the
“Seller”), FLOWSERVE US INC., a Delaware corporation, as the Servicer (the
“Servicer”), the funding sources party hereto as the financial institutions (the
“Financial Institutions”), JUPITER SECURITIZATION CORPORATION (together with the Financial
Institutions, the “Purchasers”), and JPMORGAN CHASE BANK, N.A. (successor by merger to Bank
One, NA (Main Office Chicago)), as agent (the “Agent”) for the Purchasers.

W I T N E S S E T H:

     WHEREAS, the Seller, the Servicer, the Purchasers and the Agent are parties to that certain
Receivables Purchase Agreement, dated as of October 7, 2004 (as amended, restated, supplemented or
otherwise modified from time to time, the “Agreement”); and

     WHEREAS the parties hereto desire to amend the Agreement on the terms and conditions set forth
below;

     NOW THEREFORE, in consideration of the premises herein contained, and for other good and
valuable consideration, the receipt of which is hereby acknowledged, the parties hereto hereby
agree as follows:

     1.      Defined Terms. Capitalized terms used and not otherwise defined herein shall have
the meanings assigned to such terms in the Agreement.

     2.      Amendment to the Agreement. Subject to the satisfaction of the conditions
precedent set forth in Section 5 below, clause (i)(a) to the definition of the term
“Eligible Receivable” set forth in Exhibit I to the Agreement is hereby amended and restated in its
entirety to read as follows:

     "(i) (a) if a natural person, is a resident of the United States or, if a corporation
or other business organization, is organized under the laws of the United States or any
political subdivision thereof and has its chief executive office in the United States;”

     3.      Representations and Warranties of the Seller. In order to induce the parties
hereto to enter into this Amendment, the Seller represents and warrants that:

     (a)      The representations and warranties of Seller set forth in Section 5.1 of the Agreement are
true, correct and complete on the date hereof as if made on and as of the date hereof and there
exists no Amortization Event or Potential Amortization Event on the date hereof, provided that
in the case of any representation or warranty in Section 5.1 of the Agreement that expressly
relates to facts in existence on an earlier date, the reaffirmation thereof under this
Section 3(a) shall be made as of such earlier date.

 

 

     (b)      The execution and delivery by the Seller of this Amendment has been duly authorized by
proper corporate proceedings of the Seller and this Amendment, and the Agreements, as amended by
this Amendment, constitute the legal, valid and binding obligations of the Seller, enforceable
against the Seller in accordance with its terms, except as such enforcement may be limited by
applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws of general
applicability affecting the enforcement of creditors’ rights generally.

     4.      Representations and Warranties of the Servicer. In order to induce the parties
hereto to enter into this Amendment, the Servicer represents and warrants that:

     (a)      The representations and warranties of the Servicer set forth in Section 5.1 of the
Agreement are true, correct and complete on the date hereof as if made on and as of the date
hereof and there exists no Amortization Event or Potential Amortization Event on the date
hereof, provided that in the case of any representation or warranty in Section 5.1 of the
Agreement that expressly relates to facts in existence on an earlier date, the reaffirmation
thereof under this Section 4(a) shall be made as of such earlier date.

     (b)      The execution and delivery by the Servicer of this Amendment has been duly authorized
by proper corporate proceedings of the Servicer and this Amendment, and the Agreement, as
amended by this Amendment, constitute the legal, valid and binding obligations of the Servicer,
enforceable against the Servicer in accordance with its terms, except as such enforcement may be
limited by applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws
of general applicability affecting the enforcement of creditors’ rights generally.

     5.      Conditions Precedent. The amendment to the Agreement provided for hereunder shall
become effective as of the date first written above upon the Agent’s receipt of each of the
following:

     (a)      counterparts of this Amendment executed by the Seller, the Servicer and each Purchaser;
and

     (b)      a Reaffirmation of Performance Undertaking in substantially the form attached hereto as
Exhibit A hereto, executed by the Provider in respect of the Performance Undertaking.

     6.      Ratification. The Agreement, as amended hereby, is hereby ratified, approved and
confirmed in all respects.

     7.      Reference to Agreement. From and after the effective date hereof, each reference
in the Agreement to “this Agreement”, “hereof”, or “hereunder” or words of like import, and all
references to the Agreement in any and all agreements, instruments, documents, notes, certificates
and other writings of every kind and nature shall be deemed to mean the Agreement as amended by
this Amendment.

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     8.      Costs and Expenses. The Seller agrees to pay all reasonable costs, fees and
out-of-pocket expenses (including attorneys’ fees and time charges of attorneys representing the
Agent, which attorneys may be employees of the Agent) incurred by the Agent in connection with the
preparation, execution and enforcement of this Amendment.

     9.      CHOICE OF LAW. THIS AMENDMENT SHALL BE CONSTRUED IN ACCORDANCE WITH THE INTERNAL
LAWS (AND NOT THE LAW OF CONFLICTS) OF THE STATE OF ILLINOIS.

     10.      Execution of Counterparts. This Amendment may be executed in any number of
counterparts and by different parties hereto in separate counterparts, each of which when so
executed shall be deemed to be an original and all of which taken together shall constitute one and
the same agreement.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

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

	 	 	 	 	 
	 	FLOWSERVE RECEIVABLES 

CORPORATION, as Seller

 	 
	 	By:  	/s/ John M. Nanos
 	 
	 	 	Name:  	John M. Nanos 	 
	 	 	Title:  	Vice President 	 
	 

	 	 	 	 	 
	 	FLOWSERVE US INC.,

as Servicer

 	 
	 	By:  	/s/ John M. Nanos
 	 
	 	 	Name:  	John M. Nanos 	 
	 	 	Title:  	Vice President 	 
	 

Signature Page to Amendment No. 2

 

 

	 	 	 	 	 
	 	JUPITER SECURITIZATION

CORPORATION

 	 
	 	By:  	/s/ Leo Loughead
 	 
	 	 	Name:  	Leo Loughead 	 
	 	 	Title:  	Authorized Signer 	 
	 

	 	 	 	 	 
	 	JPMORGAN CHASE BANK, N.A. (successor by merger

to Bank One, NA (Main Office Chicago)), as a

Financial Institution and as Agent

 	 
	 	By:  	/s/ Leo Loughead
 	 
	 	 	Name:  	Leo Loughead 	 
	 	 	Title:  	Managing Director, Capital Markets 	 
	 

Signature Page to Amendment No. 2

 

 

EXHIBIT A

FORM OF REAFFIRMATION OF PERFORMANCE UNDERTAKING

(attached)

 

 

REAFFIRMATION OF PERFORMANCE UNDERTAKING

As of January 14, 2005

JPMorgan Chase Bank, N.A.

(successor by merger to Bank One, N.A. (Main Office Chicago)), as Agent

c/o J.P. Morgan Securities Inc.

270 Park Avenue, 10th Floor

New York, New York 10017

     The undersigned, Flowserve Corporation, hereby:

     (i)      acknowledges, and consents to, the execution of that certain Amendment No. 2 (the
“Amendment”), of even date herewith, among Flowserve Receivables Corporation, Flowserve US
Inc., the funding sources party thereto as the Financial Institutions, Jupiter Securitization
Corporation (together with the Financial Institutions, the “Purchasers”) and JPMorgan Chase
Bank, N.A. (successor by merger to Bank One, NA (Main Office Chicago)), as agent;

     (ii)      reaffirms all of its obligations under that certain Performance Undertaking dated as of
October 7, 2004 (the “Performance Undertaking”) made by the undersigned in favor of the
Agent and the Purchasers; and

     (iii)      acknowledges and agrees that, after giving effect to the Amendment, such Performance
Undertaking remains in full force and effect and is hereby ratified and confirmed.

	 	 	 	 	 
	 	FLOWSERVE CORPORATION

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:exv10w4

 

Exhibit 10.4

LIMITED WAIVER AND AMENDMENT NO. 3

               This LIMITED WAIVER AND AMENDMENT NO. 3 (this “Amendment”), is dated as of March 15,
2005, and is entered into by and among FLOWSERVE RECEIVABLES CORPORATION, a Delaware corporation
(“SPV”), FLOWSERVE US INC., a Delaware corporation (“Flowserve”), FLOWSERVE
CORPORATION, a New York corporation (the “Provider” and together with SPV and Flowserve,
the “Flowserve Entities”), the funding sources party hereto as the financial institutions
(the “Financial Institutions”), JUPITER SECURITIZATION CORPORATION (together with the
Financial Institutions, the “Purchasers”), and JPMORGAN CHASE BANK, N.A. (successor by
merger to Bank One, NA (Main Office Chicago)), as agent (the “Agent”) for the Purchasers.

WITNESSETH:

               WHEREAS, SPV, Flowserve, the Purchasers and the Agent are parties to that certain Receivables
Purchase Agreement, dated as of October 7, 2004 (as amended, restated, supplemented or otherwise
modified from time to time, the “RPA”);

               WHEREAS, SPV and Flowserve are parties to that certain Receivables Sale Agreement, dated as of
October 7, 2004 (as amended, restated, supplemented or otherwise modified from time to time, the
“RSA”);

               WHEREAS, the Provider executed a Performance Undertaking dated as of October 7, 2004 in favor
of SPV (as amended, restated, supplemented or otherwise modified from time to time, the
“Performance Undertaking” and together with the RSA and the RPA, the “Agreements”);

               WHEREAS, pursuant to (a) Section 7.1(a)(i)(A) of the RPA, SPV is required to deliver audited
financial statements of the Provider and various other accompanying documents within 100 days after
the end of each fiscal year of the Provider, (b) Section 4.1(a)(i)(A) of the RSA, Flowserve is
required to deliver audited financial statements of the Provider and various other accompanying
documents within 100 days after the end of each fiscal year of the Provider and (c) Section 7(a)(1)
of the Performance Undertaking, the Provider is required to deliver audited financial statements of
the Provider and various other accompanying documents within 100 days after the end of each fiscal
year of the Provider;

               WHEREAS, the Flowserve Entities have requested that the Agent and the Purchasers (as assignees
of SPV’s interests under the Performance Undertaking and the RSA) waive any noncompliance with such
requirements under the Agreements with respect to the fiscal year ended December 31, 2004 until
September 30, 2005 and any consequences resulting from such noncompliance during such period;

               WHEREAS, the Agent and the Purchasers have agreed to grant such waivers on the terms and
conditions set forth herein; and

 

               WHEREAS, SPV, Flowserve, the Purchasers and the Agent desire to amend the RPA on the terms and
conditions set forth below;

               NOW THEREFORE, in consideration of the premises herein contained, and for other good and
valuable consideration, the receipt of which is hereby acknowledged, the parties hereto hereby
agree as follows:

               1. Defined Terms. Capitalized terms used and not otherwise defined herein shall have
the meanings assigned to such terms in the RPA.

               2. Limited Waiver.

               (a) Subject to the terms and conditions set forth herein and in reliance on the
representations and warranties of the Flowserve Entities herein contained, the Agent and the
Purchasers hereby temporarily waive (i) compliance with the requirement (A) under Section
7.1(a)(i)(A) of the RPA that the financial statements of the Provider for the fiscal year ended
December 31, 2004 delivered pursuant to Section 7.1(a)(i)(A) of the RPA are audited and accompanied
by an opinion of PricewaterhouseCoopers LLP, (B) under Section 4.1(a)(i)(A) of the RSA that the
financial statements of the Provider for the fiscal year ended December 31, 2004 delivered pursuant
to Section 4.1(a)(i)(A) of the RSA are audited and accompanied by an opinion of
PricewaterhouseCoopers LLP and (C) under Section 7(a)(1) of the Performance Undertaking that the
financial statements for the fiscal year ended December 31, 2004 delivered pursuant to Section
7(a)(1) of the Performance Undertaking are audited and accompanied by an opinion of
PricewaterhouseCoopers LLP, (ii) any consequences or further affirmative obligations of any
Flowserve Entity under any Agreement resulting from such noncompliance, and (iii) any Amortization
Event, Potential Amortization Event, Termination Event or Potential Termination Event arising from
an event of default under any agreement or instrument evidencing or governing Material Indebtedness
of any Flowserve Entity or any of their respective Subsidiaries arising solely from the failure to
provide similar financial information (or opinions or certifications thereof) or annual or
quarterly public filings during or for the fiscal year ended December 31, 2004 or for the first
three fiscal quarters of the fiscal year ending December 31, 2005; in each case, during the period
from the date all the conditions precedent to this Amendment under Section 5 have been
satisfied through and including the earlier to occur of (a) the date of delivery of audited
financial statements for the fiscal year ended December 31, 2004 and accompanying independent
public accountant’s opinion in accordance with Section 7.1(a)(i)(A) of the RPA, Section
4.1(a)(i)(A) of the RSA and Section 7(a)(1) of the Performance Undertaking to the Agent, and (b)
September 30, 2005; provided, however, all waivers and accommodations made to the Flowserve
Entities in this Section 2(a) shall be rescinded and be null and void and of no force and
effect upon the commencement by any holder of Material Indebtedness of any Flowserve Entity or any
their respective Subsidiaries of any action exercising rights with respect to collateral or rights
to accelerate arising from any default or event of default under any agreement or instrument
evidencing or governing Material Indebtedness any Flowserve Entity or any their respective
Subsidiaries.

 

 

               (b) The waivers set forth in Section 2(a) (the “Waiver”) shall be limited
precisely as written and relate solely to the noncompliance or temporary noncompliance, as the
case may be, by the Flowserve Entities with the provisions of the Agreements in the manner and
to the extent described above, and nothing in this Waiver shall be deemed to:

     1. constitute a waiver of compliance by SPV with respect to (i) Section 7.1(a)(i)(A) of
the RPA in any other instance or (ii) any other term, provision or condition of the RPA or
any other Transaction Document;

     2. constitute a waiver of compliance by Flowserve with respect to (i) Section
4.1(a)(i)(A) of the RSA in any other instance or (ii) any other term, provision or condition
of the RSA or any other Transaction Document;

     3. constitute a waiver of compliance by the Provider with respect to (i) Section
7(a)(1) of the Performance Undertaking in any other instance or (ii) any other term,
provision or condition of the Performance Undertaking or any other Transaction Document; or

     4. prejudice any right or remedy that SPV, the Agent or any Purchaser may now have
(except to the extent such right or remedy was based upon existing defaults that will not
exist after giving effect to this Waiver) or may have in the future under or in connection
with any Agreement or any other Transaction Document.

               Except as expressly set forth herein, the terms, provisions and conditions of each Agreement
shall remain in full force and effect and in all other respects are hereby ratified and confirmed.

               3. Amendment to the RPA. Subject to the satisfaction of the conditions precedent set
forth in Section 5 below, Section 9.1(l) of the RPA is hereby amended and restated in its
entirety to read as follows:

     “(l) The Reporting Completion Date with respect to (1) the Oracle system of the
Originator shall not have occurred by March 31, 2005 or (2) the Epic system of the
Originator shall not have occurred by May 31, 2005.”

               4. Representations and Warranties. Each of SPV, Flowserve and the Provider represents
and warrants, as to itself only and not as to the others, that:

               (a) The representations and warranties of the Flowserve Entities set forth in Agreements
(other than the representation and warranty of the Provider set forth in first sentence of Section
6(d) of the Performance Undertaking with respect to the June 30, 2004 financial statements of the
Provider and its consolidated Subsidiaries) are true, correct and complete on the date hereof as if
made on and as of the date hereof and there exists no Amortization Event, Potential Amortization
Event, Termination Event or Potential Termination Event on the date hereof, provided, that,
in the case of any representation or warranty in any Agreement that

 

 

expressly relates to facts in
existence on an earlier date, the reaffirmation thereof under this Section 4(a) shall be
made as of such earlier date.

               (b) The execution and delivery by SPV, Flowserve and the Provider of this Amendment has been
duly authorized by proper corporate proceedings of SPV, Flowserve and the Provider and each of this
Amendment and each Agreement, as amended by this Amendment, constitutes the legal, valid and
binding obligation of SPV, Flowserve and the Provider, as applicable, enforceable against such
Person in accordance with its terms, except as such enforcement may be limited by applicable
bankruptcy, insolvency, reorganization, moratorium or other similar laws of general applicability
affecting the enforcement of creditors’ rights generally.

               5. Conditions Precedent. This Amendment shall become effective as of the date first
written above upon the Agent’s receipt of each of the following:

               (a) counterparts of this Amendment executed by SPV, the Provider, Flowserve and each
Purchaser; and

               (b) an amendment fee in an amount equal to $15,000 in immediately available funds (which shall
be fully earned and non-refundable as of the date paid).

               6. Ratification. Each Agreement (in the case of the RPA, as amended hereby) is hereby
ratified, approved and confirmed in all respects.

               7. Reference to the Agreements. From and after the effective date hereof, each
reference any Agreement to “this Agreement”, “hereof”, or “hereunder” or words of like import, and
all references to such Agreement in any and all agreements, instruments, documents, notes,
certificates and other writings of every kind and nature shall be deemed to mean such Agreement as
amended by this Amendment.

               8. Costs and Expenses. Each Flowserve Entity agrees to pay all reasonable costs, fees
and out-of-pocket expenses (including attorneys’ fees and time charges of attorneys representing
the Agent, which attorneys may be employees of the Agent) incurred by the Agent in connection with
the preparation, execution and enforcement of this Amendment.

               9. CHOICE OF LAW. THIS AMENDMENT SHALL BE CONSTRUED IN ACCORDANCE WITH THE INTERNAL
LAWS (AND NOT THE LAW OF CONFLICTS) OF THE STATE OF ILLINOIS.

               10. Execution of Counterparts. This Amendment may be executed in any number of
counterparts and by different parties hereto in separate counterparts, each of which when so
executed shall be deemed to be an original and all of which taken together shall constitute one and
the same agreement.

               11. Reaffirmation of Performance Undertaking. The Provider consents to the execution
by SPV and Flowserve of this Amendment, reaffirms all of its obligations under the

 

 

Performance
Undertaking and acknowledges and agrees that, after giving effect to this Amendment, the
Performance Undertaking remains in full force and effect and is hereby ratified and confirmed.

               12. Delivery of Financial Statements. Each Flowserve Entity hereby agrees to provide
to the Agent within 100 days after the end of the fiscal year of the Provider ended December 31,
2004, unaudited consolidated balance sheet and related statements of income, stockholders’ equity
and cash flows of the Provider showing the financial condition of the Provider and its consolidated
Subsidiaries as of the close of the fiscal year ended December 31, 2004 and the results of its
operations and the operations of such Subsidiaries during such year. SPV agrees that such
financial statements shall be accompanied with a certificate of an Authorized Officer of SPV
certifying such statements and certifying that no Amortization Event or Potential Amortization
Event, has occurred or, if such an Amortization Event or Potential Amortization Event has occurred,
specifying the nature and extent thereof and any corrective action taken or proposed to be taken
with respect thereto. Flowserve agrees that such financial statements shall be accompanied with a
certificate of an Authorized Officer of Flowserve certifying such statements and certifying that no
Termination Event or Potential Termination Event, has occurred or, if such a Termination Event or
Potential Termination Event has occurred, specifying the nature and extent thereof and any
corrective action taken or proposed to be taken with respect thereto.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

 

 

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

	 	 	 	 	 	 	 
	 	 	FLOWSERVE
RECEIVABLES

 CORPORATION
	 
	 	 	 	 	 	 
	 	 	By:	 	/s/ John M. Nanos
	 	 	 	 	 
	

	 	 	 	Name:

Title:
	 	John M. Nanos

Vice President
	 
	 	 	 	 	 	 
	 	 	FLOWSERVE US INC.
	 
	 	 	 	 	 	 
	 	 	By:	 	/s/ John M. Nanos
	 	 	 	 	 
	

	 	 	 	Name:

Title:
	 	John M. Nanos

Vice President
	 
	 	 	 	 	 	 
	 	 	FLOWSERVE CORPORATION
	 
	 	 	 	 	 	 
	 	 	By:	 	/s/ John M. Nanos
	 	 	 	 	 
	

	 	 	 	Name:

Title:
	 	John M. Nanos

Assistant Secretary
	 
	 	 	 	 	 	 
	 	 	JUPITER SECURITIZATION

CORPORATION
	 
	 	 	 	 	 	 
	 	 	By:	 	/s/ Leo Loughead
	 	 	 	 	 
	

	 	 	 	Name:
	 	Leo Loughead
	

	 	 	 	Title:
	 	Authorized Signer
	 
	 	 	 	 	 	 
	 	 	JPMORGAN CHASE BANK, N.A. (successor by merger to Bank One, NA (Main Office Chicago)), as a Financial Institution and as Agent
	 
	 	 	 	 	 	 
	 	 	By:	 	/s/ Leo Loughead
	 	 	 	 	 
	

	 	 	 	Name:
	 	Leo Loughead
	

	 	 	 	Title:
	 	Managing Director, Capital Markets

Signature Page to Limited Waiver and Amendment No. 3

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