Document:

MJB - BMC Agreement & Temporary Waiver

AGREEMENT AND TEMPORARY WAIVER

   
THIS AGREEMENT
AND TEMPORARY WAIVER (this "Waiver"), dated as of June 30,
2003, is by and among BMC Industries, Inc., a Minnesota corporation ("Borrower"),
the several banks and other financial institutions set forth on the signature
pages hereto in their capacities as lenders under the Credit Agreement (as
defined below), DEUTSCHE BANK TRUST COMPANY AMERICAS (formerly named Bankers
Trust Company), as Agent for the Lenders (in such capacity, the "Agent")
and as a Lender, and Bank One, NA, as Documentation Agent and a Lender.

W I T N E S S
E T H :

    WHEREAS, Borrower, Lenders and Agent are
parties to that certain Third Amended and Restated Credit Agreement dated as of
September 27, 2002 (as amended, restated, supplemented or otherwise modified
and in effect from time to time, the "Credit Agreement"),
pursuant to which Lenders have provided to Borrower credit facilities and other
financial accommodations; and

    WHEREAS, Borrower has requested that Agent and
Lenders temporarily waive certain Unmatured Events of Default and Events of
Default that exist under the Credit Agreement as set forth herein and Lenders
and Agent are agreeable to the same, subject to the terms and conditions
hereof.

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

    1.               

Defined Terms. 
Terms capitalized herein and not otherwise defined herein are used with
the meanings ascribed to such terms in the Credit Agreement.  

    2.              

Temporary Waiver.  (a)  Subject to the
conditions set forth in Section 7 hereof, Agent and Lenders hereby
(i) temporarily waive during the Waiver Period (as defined below) any
Event of Default or Unmatured Event of Default under Section 9.1 of the
Credit Agreement arising out of the Borrower's failure (A) to make the
Scheduled Term A Repayment and Scheduled Term B Repayment due June 30, 2003,
(B) to make the payment required by Section 3.2(d) of the Credit
Agreement on July 1, 2003, (C) to comply with Sections 8.1(a), (b) and (c) of
the Credit Agreement for the fiscal quarter of Borrower ended June 30, 2003,
and (D) to comply with Sections 7.4, 7.5, 8.4, 8.6 and 8.7 solely with respect
to Buckbee-Mears Deutschland Holding GmbH & Co. KG and its wholly-owned
subsidiaries, Buckbee-Mears Europe GmbH and Vision-Ease Deutschland GmbH (each
of the matters in clauses (A), (B) (C) and (D) being, the "Disclosed
Defaults") and (ii) temporarily waive during the Waiver Period
the application of the Default Rate with respect to the Disclosed
Defaults.                                                                                                                                       
 

            For purposes of this Waiver, "Waiver
Period" means the period commencing on the Effective Date and
terminating on the earliest of (a) July 15, 2003; and (b) the occurrence of an
Additional Default (as defined below) under the Loan Documents.   

                        (b)       Upon the termination of the Waiver Period
as provided above, Agent and Lenders shall be fully entitled to exercise any
rights or remedies they may have under the Credit Agreement, the Loan Documents
or applicable law.  Nothing herein shall
limit or restrict in any way the rights and remedies of Agent or any Lender
with respect to any Unmatured Event of Default or Event of Default (including
any breach by the Borrower of any covenant contained in Section 4 of
this Agreement) other than a Disclosed Default (collectively, the "Additional
Defaults" and, individually, each an "Additional Default").

                        (c)       Notwithstanding the waiver of the
Disclosed Defaults pursuant to this Agreement and Temporary Waiver or anything
in the Credit Agreement to the contrary, the Borrower hereby acknowledges and
agrees that during the Waiver Period no Revolving Lender shall be obligated to
make Revolving Loans pursuant to the terms and conditions of the Credit
Agreement.

                        (d)       BORROWER EXPRESSLY ACKNOWLEDGES AND
AGREES THAT THE WAIVERS SET FORTH IN THIS SECTION 2 ARE EFFECTIVE ONLY
DURING THE WAIVER PERIOD AND THAT, AFTER THE TERMINATION OF THE WAIVER PERIOD,
THE CREDIT AGREEMENT WILL BE IN MATERIAL DEFAULT AND AGENT AND LENDERS WILL BE
FULLY ENTITLED IMMEDIATELY TO EXERCISE THEIR RIGHTS AND REMEDIES UNDER THE
CREDIT AGREEMENT, THE LOAN DOCUMENTS OR APPLICABLE LAW WITHOUT REGARD TO ANY
MATTERS TRANSPIRING DURING THE WAIVER PERIOD OR THE FINANCIAL CONDITION OR
PROSPECTS OF  BORROWER AND ITS
SUBSIDIARIES.  BORROWER UNDERSTANDS THAT
AGENT AND LENDERS ARE EXPRESSLY RELYING ON THE TERMS OF THIS SECTION 2(d)
AND WOULD NOT HAVE ENTERED INTO THIS WAIVER BUT FOR BORROWER'S ACKNOWLEDGMENT
AND AGREEMENT IN THIS SECTION 2(d).

    3.              

Other Agreements of the Parties.  Each of the Agent, the Lenders and the
Borrower hereby agree that until such time as the Required Lenders otherwise
consent in writing, the Borrower shall only be entitled to elect Interest
Periods of up to one month for any Notice of Borrowing or Notice of Conversion
or Continuation with respect to Eurodollar Loans.    4.Covenants of the Borrower.  The Borrower hereby further covenants and
agrees that it will (and that its failure to do so will be deemed an immediate
Event of Default under the Credit Agreement and an Additional Default
hereunder):

            (a)       no later than July 10, 2003, hire a
financial advisor, which person shall be reasonably satisfactory to Agent and
the Lenders;

            (b)       provide to the Agent by 12:00 p.m.
(Chicago time) July 3, 2003, a budget for the Waiver Period and a cash flow
forecast acceptable to the Agent and the Lenders in the form and detail
currently provided to Alvarez & Marsal, Inc.; and

            (c)       pay promptly upon invoice thereof the
fees and expenses of counsel, advisors, consultants and other Persons retained
by the Agent (or such Persons) in connection with the proposed restructuring of
the Borrower, including, without limitation, the fees and expenses of Winston
& Strawn, counsel to the Agent, and Alvarez and Marsal, Inc.

    5.              

Representations and Warranties.  In order to induce Agent and Lenders to
enter into this Waiver, Borrower hereby represents and warrants to Agent and
Lenders, in each case after giving effect to this Waiver, as follows:            (a)    Borrower has the right, power and capacity and has been duly
authorized and empowered by all requisite corporate and shareholder action to
enter into, execute, deliver and perform this Waiver and all agreements, documents
and instruments executed and delivered pursuant to this Waiver.

            (b)    This Waiver constitutes Borrower's legal, valid and binding
obligation, enforceable against it, except as enforcement thereof may be
subject to the effect of any applicable bankruptcy, insolvency, reorganization,
moratorium or similar laws affecting creditors' rights generally and general
principles of equity (regardless of whether such enforcement is sought in a
proceeding in equity or at law or otherwise).            (c)    The representations and warranties contained in the Credit
Agreement and the other Loan Documents are true and correct in all material
respects at and as of the Effective Date as though made on and as of the
Effective Date (except to the extent specifically made with regard to a particular
date, in which case such representation and warranty is true and correct in all
material respects as of such earlier date).

            (d)    Borrower's execution, delivery and performance of this Waiver
do not and will not violate its Articles or Certificate of Incorporation or
By-laws, any law, rule, regulation, order, writ, judgment, decree or award
applicable to it or any contractual provision (except as otherwise expressly
waived hereby) to which it is a party or to which it or any of its property is
subject.            (e)    No authorization or approval or other action by, and no notice
to or filing or registration with, any governmental authority or regulatory
body (other than those which have been obtained and are in force and effect) is
required in connection with the execution, delivery and performance by Borrower
or any other Credit Party of this Waiver and all agreements, documents and
instruments executed and delivered pursuant to this Waiver.

            (f)    Other than the Disclosed Defaults, no Event of Default or
Unmatured Event of Default exists under the Credit Agreement.    

     6.    Conditions to Effectiveness of Waiver. This
Waiver shall become effective on the date (the "Effective Date")
each of the following conditions precedent is satisfied:

            (a)    Execution and Delivery of Waiver. Borrower, Agent and
each Lender shall have executed and delivered this Waiver to the Agent.

            (b)    Execution and Delivery of Loan Documents.  Agent shall have received each of the
following documents, all of which shall be satisfactory in form and substance
to Agent and its counsel:

                    (1)    A certificate of a Responsible Officer of Borrower in the form
of Exhibit A attached hereto;                    (2)    A Reaffirmation of Guaranty executed by a Responsible Officer
of each Subsidiary Guarantor in the form of Exhibit B attached
hereto.   

            (c)    Representations and Warranties.  The representations and warranties of the
Borrower and the other Credit Parties contained in this Waiver, the Credit
Agreement and the other Loan Documents shall be true and correct in all
material respects as of the Effective Date, with the same effect as though made
on such date, except to the extent that any such representation or warranty
relates to an earlier date, in which case such representation or warranty shall
be true and correct in all material respects as of such earlier date.

            (d)   

No Defaults. Other than the Disclosed Defaults, no
Unmatured Event of Default or Event of Default under the Credit Agreement shall
have occurred and be continuing.

            (e)    

Fees and Expenses. 
The Borrower shall have paid (i) to Agent on behalf of each Lender
the Waiver Fee due and owing to such Lender and (ii) all other fees and
expenses then due and owing by the Borrower to each of Winston & Strawn,
counsel to the Agent and Alvarez & Marsal, Inc., advisor to Winston &
Strawn.    7.              

Miscellaneous. The parties hereto hereby further
agree as follows:

            (a)    Costs, Expenses and Taxes.  Borrower hereby agrees to pay all reasonable fees, costs and
expenses of Agent incurred in connection with the negotiation, preparation and
execution of this Waiver and the transactions contemplated hereby, including,
without limitation, the reasonable fees and expenses of Winston & Strawn,
counsel to Agent.

            (b)   

Counterparts. 
This Waiver may be executed in one or more counterparts any of which may
be a facsimile, each of which, when executed and delivered, shall be deemed to
be an original and all of which counterparts, taken together, shall constitute
but one and the same document with the same force and effect as if the
signatures of all of the parties were on a single counterpart, and it shall not
be necessary in making proof of this Waiver to produce more than one (1) such
counterpart.

            (c)    Headings. 
Headings used in this Waiver are for convenience of reference only and
shall not affect the construction of this Waiver.

            (d)    Integration. 
This Waiver and the Credit Agreement (as modified hereby) constitute the
entire agreement among the parties hereto with respect to the subject matter
hereof.

            (e)    Governing Law. 
THIS WAIVER SHALL BE GOVERNED BY, AND CONSTRUED AND ENFORCED IN
ACCORDANCE WITH, THE INTERNAL LAWS AND DECISIONS OF THE STATE OF NEW YORK
(WITHOUT REFERENCE TO CONFLICT OF LAWS PRINCIPLES).

            (f)    Binding Effect. 
This Waiver shall be binding upon and inure to the benefit of and be
enforceable by Borrower, Agent and Lenders and their  respective successors and assigns.  Except as expressly set forth to the contrary herein, this Waiver
shall not be construed so as to confer any right or benefit upon any Person
other than Borrower, Agent and the Lenders and their respective successors and
permitted assigns.

            (g)    Waiver.  The
parties hereto agree and acknowledge that nothing contained in this Waiver in
any manner or respect limits or terminates any of the provisions of the Credit
Agreement or any of the other Loan Documents other than as expressly set forth
herein and further agree and acknowledge that the Credit Agreement and each of
the other Loan Documents remain and continue in full force and effect and are
hereby ratified and confirmed.  Except
to the extent expressly set forth herein, the execution, delivery and
effectiveness of this Waiver shall not operate as a waiver of any rights, power
or remedy of Lenders or Agent under the Credit Agreement or any other Loan
Document, nor constitute a waiver of any provision of the Credit Agreement or
any other Loan Document.  No delay on the
part of any Lender or Agent in exercising any of their respective rights,
remedies, powers and privileges under the Credit Agreement or any of the Loan
Documents or partial or single exercise thereof, shall constitute a waiver
thereof.  Borrower acknowledges and
agrees that this Waiver constitutes a "Loan Document" for purposes of
the Credit Agreement, including, without limitation, Sections 9.1 and 11.1
of the Credit Agreement.  None of the
terms and conditions of this Waiver may be changed, waived, modified or varied
in any manner, whatsoever, except in accordance with Section 11.1 of the
Credit Agreement.

            (h)       Release of Claims.  Borrower hereby represents and warrants that
there are no liabilities, claims, suits, debts, losses, causes of action, demands,
rights, damages or costs, or expenses of any kind, character or nature
whatsoever, known or unknown, fixed or contingent (collectively, the "Claims"),
which Borrower may have or claim to have against Agent or any Lender, or any of
their respective affiliates, agents, employees, officers, directors,
representatives, attorneys, successors, or assigns (collectively, the "Lender
Released Parties"), which might arise out of or be connected with any act
of commission or omission of the Lender Released Parties existing or occurring
on or prior to the date of this Agreement, including without limitation any
Claims arising with respect to the Credit Agreement or any Loan Documents.  Borrower hereby releases, acquits, and forever
discharges the Lender Released Parties from any and all Claims that Borrower
may have or claim to have, relating to or arising out of or in connection with
the Credit Agreement or any Loan Documents or any other agreement or
transaction contemplated thereby or any action taken in connection therewith
from the beginning of time up to and including the date of the execution and
delivery of this Agreement.  Borrower
further agrees forever to refrain from commencing, instituting, or prosecuting
any lawsuit, action, or other proceeding against any Lender Released Parties
with respect to any and all Claims.

 

[Signature Page
Follows]

    IN WITNESS WHEREOF, the parties hereto have caused this Waiver to be
executed by their respective officers thereunto duly authorized, as of the date
first written above.

BMC INDUSTRIES, INC.

By: 
/s/C. E. Petersen                                 

Name: 
C. E. Petersen            

Title:
Senior Vice President and Chief Financial Officer

 

 

DEUTSCHE BANK
TRUST COMPANY AMERICAS, in its individual capacity and as Agent

 

 

By:   /s/Clark
G. Peterson             

Name:
Clark G. Petersen

Title: 
Vice President

BANK ONE, NA (Main Office Chicago) 

individually as a
Lender and as documentation agent

 

By: 
/s/Henry W. Howe                

Name: 
Henry W. Howe

Title:  Assistant Vice President

 

 

WELLS
FARGO BANK MINNESOTA, NATIONAL ASSOCIATION (f/k/a Norwest Bank Minnesota,
National Association)

By:   /s/Scott
J. Manookin                     

Name: 
Scott J. Manookin  

Title: Vice President                                                              

HARRIS
TRUST AND SAVINGS BANK

By:  /s/Lawrence
A. Mizera         

Name: 
Lawrence A. Mizera                                                             

Title:Vice President                                                              

CREDIT
AGRICOLE INDOSUEZ

By:  /s/Leo
Von Reissig              

Name: 
Leo Von Reissig                                                             

Title:  Vice President                                                              

 

By:  /s/Frederik
W. Asse               

Name: 
Frederik W. Asse                                                             

Title:  Vice President                                                              

WACHOVIA
BANK, N.A.

By:  /s/Jason
Consoli                      

Name: Jason
Consoli                                                  

Title:  Vice President                                                  

UNION
BANK OF CALIFORNIA, N.A.

By:   /s/Jeffrey
Mumm                 

Name: 
Jeffrey Mumm                                                              

Title: Vice President

U.S.
BANK NATIONAL ASSOCIATION

By: 
/s/David Y. Kopolow        

Name:  David
Y. Kopolow                                                            

Title: Vice President                                                             

 

 

 

 

EXHIBIT A

CERTIFICATE OF OFFICER

 

I, the undersigned, Chief Financial Officer
and Secretary of BMC Industries, Inc., a Minnesota corporation (the "Borrower"),
in accordance with Section 6(b) of that certain Temporary Waiver dated
as of June 30, 2003 (the "Agreement") among  the Borrower, Deutsche Bank Trust Company
Americas, as Agent and the financial institutions party to the Credit Agreement
(as defined in the Agreement), do hereby certify on behalf of Borrower, the
following:

1.         The representations and warranties set
forth in Section 5 of the Agreement are true and correct in all material
respects as of the date hereof except to the extent such representations and
warranties are expressly made as of a specified date in which event such
representations and warranties were true and correct in all material respects
as of such specified date;

2.         Other than the Disclosed Defaults, no
Event of Default or Unmatured Event of Default has occurred and is continuing;
and

3.         The conditions of Section 6 of
the Agreement have been fully satisfied.

Unless otherwise defined herein, capitalized
terms used herein shall have the meanings set forth in the Agreement.  

[signature page
follows]

IN WITNESS WHEREOF,
the undersigned has duly executed and delivered on behalf of Borrower this
Certificate of Officer on this 30th day of June, 2003.

	
   

  	
  
  BMC INDUSTRIES, INC.

   

   

  
  By:    /s/Curtis E. Petersen                            
  

  
  Name: Curtis E. Petersen                                  
  

  
  Title: Senior Vice President and Chief Financial
  Officer  

   

   

   

  

 

EXHIBIT B

REAFFIRMATION OF GUARANTY

Each of the undersigned acknowledges receipt
of a copy of the Temporary Waiver (the "Agreement";
capitalized terms used herein shall, unless otherwise defined herein, have the
meanings provided in the Agreement) dated as of June 30, 2003, by and among BMC
Industries, Inc., a Minnesota corporation, the financial institutions party to
the Credit Agreement (as defined in the Agreement) as Lenders, Deutsche Bank
Trust Company Americas, as Agent, and consents to such Agreement and each of
the transactions referenced in the Agreement and hereby reaffirms its
obligations under the Subsidiary Guarantee Agreement.

Dated as of June 30, 2003.

VISION-EASE
LENS, INC.,

                                                                        as
Guarantor

 

 

 

                                                                        By:   /s/C.
E. Petersen                                  

                                                                        Name: C.E.
Petersen                                                         

                                                                        Title:
Vice President

 

 

VISION-EASE
LENS AZUSA, INC.,

                                                                        as
Guarantor

 

                                                                        By:    /s/C.E.
Petersen                                   

                                                                        Name: 
C.E. Petersen

                                                                        Title:                                                            

 

 

VISION-EASE
LENS AZUSA, LLC,

                                                                        as
Guarantor

 

 

                                                                        By:    /s/C.E.
Petersen                                  

                                                                        Name: 
C.E. Petersen                                                          

                                                                        Title: 
Vice President of Member Organization<pre>
                                                                  EXHIBIT 4.1

                      CONSULTING AGREEMENT

AGREEMENT, made this 1st day of March, 2003 by and between ConectiSys
Corporation, having its principal place of business at 24307 Magic Mtn.
Parkway, Suite 41, Valencia, CA  91355, (hereinafter the "Company") and
Clifford Mastricola, having his principal place of business at 2190 Carmel
Valley Rd Del Mar, CA  92014 (hereinafter the "Consultant").  The agreement
will become effective on the first day the consultation commences.

WHEREAS, the Company desires to retain the Consultant for consulting
services on connection with the Company's business affairs on a non-
exclusive basis, and the Consultant is willing to undertake to provide such
services as hereinafter fully set forth:

WITNESSETH

NOW THEREFORE, the parties agree as follows:

1.      Term:  The four (4) months from the date hereof. Either party may
cancel this contract with written notice provided seven (7) days prior to
cancellation date.

2.      Nature of Services: The Company hereby engages Consultant to render
the services hereinafter described during the term hereof (its being
understood and agreed that Consultant is free tender the same or similar
services to any other entity selected by it).

(1) Consult with Company as directed concerning on-going strategic
corporate planning, joint ventures and strategic alliances, including any
revision of the Company's client's business plan.

(2) Render advice with respect to leasing and/or other financing
arrangements of Company's product lines.

(3) Assist in negotiation of Company's contracts with suppliers and major
customers when so required by the Company.

(4) Consult with and advise Company with regards to potential mergers and
acquisitions, whether the Company's clients be acquiring or the target of
acquisition.

(5) Evaluate the Company marketing and sales requirements.

3.      Compensation:  It is mutually agreed that the Consultant will be
entitled to compensation of 10,000,000 shares of Company's common stock.

4.      Expenses:  Consultant shall pay his own expenses.

5.      Complete Agreement:  This Agreement contains the entire Agreement
between the parties with respect to the contents hereof supersedes all
prior agreements and understandings between the parties with the respect to
such matters, whether written or oral.  Neither this Agreement, nor any
term or provisions hereof may be changed, waived, discharged or amended in
any manner other than by any instrument in writing, signed by the party
against which the enforcement of the change, waiver, discharge or amendment
is sought.

6.      Counterparts: This Agreement may be executed in two or more
counterparts, each of which shall be an original but all of which shall
constitute one Agreement.

7.      Survival:  Any termination of this Agreement shall not, however,
affect the on-going provisions of this Agreement, which shall survive such
termination in accordance with their terms.

8.      Notice:  Any or all notices, designations, consents, offers,
acceptance or other communication provided for herein shall be given in
writing and delivered in person or by registered or certified mail, return
receipt requested, directed to the address shown below unless notice of a
change of address is furnished:

If to Consultant:

Clifford Mastricola
110 15th Street
Suite G
Del Mar, CA  92014

If to Company:

ConectiSys Corporation
24307 Magic Mtn. Parkway
Suite 41
Valencia, CA  91355
Attention: Robert Spigno

9.      Severability: Whenever possible, each provision of Agreement will
be interpreted in such manner as to be effective and valid under applicable
law. If any provision of this Agreement is held to be invalid, illegal or
unenforceable provision had never been contained herein.

10.     Miscellaneous:

(a)     All final decisions with the respect to consultation, advice and
services rendered by the Consultant to the Company shall rest exclusively
with the Company, and Consultant shall not have any right or authority to
bind the Company to any obligation or commitment. (b)   The parties hereby
agree to submit any controversy or claim arising out of or relating to this
Agreement to final binding arbitration administered by the American
Arbitration Association ("AAA") under its Commercial Arbitration Rules, and
further agree that immediately after the filing of a claim as provided
herein they shall in good faith attempt mediation in accordance with the
AAA Commercial Mediation Rules; provided, however, that the proposed
mediation shall not interfere with or in any way impede the progress of
arbitration.  The parties also agree that (i) the AAA Optional Rules for
Emergency Measures of Protection shall apply to any proceedings initiated
hereunder; (ii) the arbitrator shall be authorized and empowered to grant
any remedy or relief, which the arbitrator deems just and equitable in
nature, including, but not limited to, specific performance, injunction,
declaratory judgment and other forms of provisional relief in addition to a
monetary award; (iii) the arbitrator may make any other decisions including
interim, interlocutory or partial findings, orders and awards to the full
extent provided in Rule 45 of the Commercial Arbitration Rules; and (iv)
the arbitrator shall be empowered and authorized to award attorneys' fees
to the prevailing party in accordance with Rule45 (d).

Agreed and Accepted on March 1, 2003 by and between:

Conectisys Corporation                  Consultant

By: /S/ ROBERT A. SPIGNO                By:   /s/ CLIFFORD MASTRICOLA
    -------------------------               ---------------------------
    Robert A. Spigno, CEO                   Clifford Mastr

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