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Exhibit 10.55    
    

 
 

FLOWSERVE CORPORATION
  
    FIRST AMENDMENT
  TO FIRST AMENDED AND RESTATED CREDIT AGREEMENT    
    

        This FIRST AMENDMENT TO FIRST AMENDED AND RESTATED CREDIT AGREEMENT (this "First
Amendment") is dated as of June 30, 2003 and entered into by and among Flowserve Corporation, a New York corporation (the
"Borrower"), Flowserve France SAS (the "Subsidiary Borrower"), the Guarantors of the Borrower listed on
the signature pages hereof (only for the purposes of Section 5), the financial institutions listed on the signature pages hereof (each individually a
"Lender" and collectively the "Lenders"), Credit Suisse First Boston, a bank organized under the laws of
Switzerland, acting through its New York branch ("CSFB"), as syndication agent (the "Syndication
Agent"), and Bank of America, N.A., a national banking association ("BofA"), as swingline lender (in such capacity, the
"Swingline Lender"), as administrative agent (in such capacity, the "Administrative Agent") and as
collateral agent (in such capacity, the "Collateral Agent") for the Lenders, and is made with reference to that certain First Amended and Restated
Credit Agreement dated as of May 2, 2002 (the "Credit Agreement"), by and among the Borrower, the Lenders party thereto, the Syndication Agent,
the Swingline Lender, the Administrative Agent and the Collateral Agent. Capitalized terms used herein without definition shall have the same meanings as set forth in the Credit Agreement. 

RECITALS  

        WHEREAS, the Borrower and the Lenders desire to amend the Credit Agreement to permit the Borrower to amend certain
financial covenants and to make certain other amendments as set forth below; 

        WHEREAS, subject to the terms and conditions of this First Amendment, the Lenders are willing to agree to such amendments. 

        NOW, THEREFORE, in consideration of the premises and the agreements, provisions and covenants herein contained, the parties hereto agree
as follows: 

Section 1. AMENDMENTS TO CREDIT AGREEMENT  

 A.    Amendments to Article I: Definitions  

        The definition of "Consolidated EBITDA" in Section 1.01 of the Credit Agreement is hereby amended and restated in its entirety to read as follows: 

        "'Consolidated EBITDA' shall mean, for any period, Consolidated Net Income for such period, plus (a) without duplication and to the
extent deducted in determining such Consolidated Net Income, the sum of (i) Consolidated Interest Expense for such period, (ii) consolidated income tax expense for such period,
(iii) all amounts attributable to depreciation and amortization for such period, (iv) any extraordinary losses or extraordinary non-cash charges for such period,
(v) the amount of premium payments made by Company or its Subsidiaries associated with the repurchase or prepayment of the Subordinated Notes from the proceeds of the Fall 2001 Equity Issuance
and the amount of such premium payments associated with any further repurchase or repayment of the Subordinated Notes to the extent such repurchase or prepayment is permitted hereunder,
(vi) integration and restructuring charges in connection with the IDP Transactions and taken with respect to periods ended on or prior to December 31, 2001, (vii) integration and
restructuring charges in connection with the Acquisition and taken with respect to periods ended on or prior to June 30, 2004, in an aggregate amount not to exceed $40,000,000, and
(viii) restructuring and integration charges taken with respect to periods beginning on July 1, 2003 and ended on or prior to December 31, 2004, in an aggregate amount not to
exceed $15,000,000, and minus (b) without duplication and to the extent included in determining such Consolidated Net Income, any extraordinary gains for such period, all determined on a
consolidated basis in accordance with GAAP; provided that in the case of the Company, Consolidated EBITDA shall be determined with reference to
Schedule 1.01(d)." 

1                                        
                        (First Amendment)

 

 B.    Amendments to Article VI: Negative Covenants  

        1.     Section 6.11
of the Credit Agreement is hereby amended by deleting the table set forth therein from "From and including September 30, 2002 through and
including September 29, 2003" to the end in its entirety and substituting the following therefor: 

	"Period
 
	 	Ratio
	 
	From and including June 30, 2002 through and including September 29, 2003	 	2.25x	 
	From and including September 30, 2003 through and including December 30, 2003	 	2.50x	 
	From and including December 31, 2003 through and including March 30, 2004	 	2.75x	 
	From and including March 31, 2004 through and including December 30, 2005	 	3.00x	 
	Thereafter	 	4.00x	"

        2.     Section 6.13
of the Credit Agreement is hereby amended by deleting the table set forth therein in its entirety and substituting the following therefor: 

	"Period
 
	 	Ratio
	 
	From and including June 30, 2002 through and including September 29, 2004	 	4.00x	 
	From and including September 30, 2004 through and including March 30, 2005	 	3.75x	 
	From and including March 31, 2005 through and including September 29, 2005	 	3.50x	 
	From and including September 30, 2005 through and including December 30, 2005	 	3.25x	 
	Thereafter	 	3.00x	"

Section 2.    CONDITIONS TO EFFECTIVENESS  

        Section 1 of this First Amendment shall become effective as of June 30, 2003 upon the satisfaction prior or concurrent satisfaction of all of the
following conditions precedent (the date of satisfaction of such conditions being referred to herein as the "First Amendment Effective Date"): 

        A.    On or prior to the First Amendment Effective Date, the Borrower shall deliver to the Lenders (or to the Administrative
Agent for the Lenders) copies of this First Amendment executed by each Loan Party. 

        B.    On or prior to the First Amendment Effective Date, the Required Lenders shall have executed this First Amendment. 

        C.    On or prior to the First Amendment Effective Date, the Borrower shall have paid to the Administrative Agent for the
account of each Lender that executes this First Amendment on or prior to 4:00 p.m., Dallas time, on June 30, 2003 an amendment fee equal to .15% of the sum of such Lender's Revolving
Credit Commitment and/or the principal amount of Term Loans held by such Lender on the First Amendment Effective Date, in each case under (and as defined in) the Credit Agreement. 

Section 3.    REPRESENTATIONS AND WARRANTIES  

        In order to induce the Lenders to enter into this First Amendment and to amend the Credit Agreement in the manner provided herein, the Borrower represents and
warrants to each Lender that the following statements are true, correct and complete on and as of the First Amendment Effective Date: 

        A.    Organization; Powers.    The Borrower and each of the Subsidiaries (i) (a) is duly organized, validly
existing and in good standing under the laws of the jurisdiction of its organization, (b) has all requisite power and authority to own its property and assets and to carry on its business as
now conducted and as proposed to be conducted and (c) is qualified to do business in, and is in good standing in, every jurisdiction where such qualification is required, except where any such
failure, individually or in the aggregate, could not reasonably be expected to result in a Material Adverse Effect, and (ii) in the case of the Borrower and each Subsidiary that is a party
hereto, has the power and authority to execute, deliver and perform its obligations under the Credit Agreement as amended by this First Amendment (the "Amended
Agreement"). 

2                                        
                        (First Amendment)

 

        B.    Authorization.    The First Amendment (i) has been duly authorized by all requisite corporate, and, if
required, stockholder, action on the part of the Borrower and each Subsidiary that is a party hereto and (ii) will not (a) violate (1) any provision of law, statute, rule or
regulation, or of the certificate or articles of incorporation or other constitutive documents or by-laws of the Borrower or any Subsidiary, (2) any order of any Governmental
Authority or (3) any provision of any indenture, agreement or other instrument to which the Borrower or any Subsidiary is a party or by which any of them or any of their property is or may be
bound, (b) be in conflict with, result in a breach of or constitute (alone or with notice or lapse of time or both) a default under, or give rise to any right to accelerate or to require the
prepayment, repurchase or redemption of any obligation under any such indenture, agreement or other instrument or (c) result in the creation or imposition of any Lien upon or with respect to
any property or assets now owned or hereafter acquired by the Borrower or any Subsidiary (other than any Lien created hereunder or under the First Amended and Restated Security Documents). 

        C.    Enforceability.    This First Amendment has been duly executed and delivered by each Loan Party which is a party
hereto, and this First Amendment and the Amended Agreement constitute a legal, valid and binding obligation of each such Loan Party enforceable against each such Loan Party in accordance with their
respective terms, except as may be limited by bankruptcy, insolvency, reorganization, moratorium or similar laws or equitable principles relating to or limiting creditors' rights generally or by
equitable principles relating to enforceability. 

        D.    Governmental Approvals.    No action, consent or approval of, registration or filing with or any other action by
any Governmental Authority is or will be required in connection with the execution and delivery of this First Amendment, and the performance by the Borrower of the Amended Agreement. 

        E.    Incorporation of Representations and Warranties from Credit Agreement.    The representations and warranties
contained in Article III of the Credit Agreement are incorporated herein by this reference and are and will be true, correct and complete in all material respects on and as of the First
Amendment Effective Date to the same extent as though made on and as of that date, except to the extent such representations and warranties specifically relate to an earlier date, in which case they
were true, correct and complete in all material respects on and as of such earlier date. 

        F.    Absence of Default.    No event has occurred and is continuing or will result from the consummation of the
transactions contemplated by this First Amendment that would constitute a Default or an Event of Default. 

Section 4.    MISCELLANEOUS  

        A.    Reference to and Effect on the Credit Agreement and the Other Loan Documents.

        1.     On
and after the First Amendment Effective Date, each reference in the Credit Agreement to "this Agreement", "hereunder", "hereof", "herein" or words of like import
referring to the Credit Agreement, and each reference in the other Loan Documents to the "First Amended and Restated Credit Agreement", "Credit Agreement", "thereunder", "thereof" or words of like
import referring to the Credit Agreement shall mean and be a reference to the Amended Agreement. 

        2.     Except
as specifically amended by this First Amendment, the Credit Agreement and the other Loan Documents shall remain in full force and effect and are hereby ratified
and confirmed. 

        3.     The
execution, delivery and performance of this First Amendment shall not, except as expressly provided herein, constitute a waiver of any provision of, or operate as a
waiver of any right, power or remedy of the Administrative Agent or any Lender under, the Credit Agreement or any of the other Loan Documents. 

        B.    Fees and Expenses.    The Borrower acknowledges that all costs, fees and expenses as described in
Section 9.05 of the Credit Agreement incurred by the Administrative Agent and its counsel with respect to this First Amendment and the documents and transactions contemplated hereby shall be
for the account of the Borrower. 

3                                        
                        (First Amendment)

 

        C.    Headings.    Section and subsection headings in this First Amendment are included herein for convenience of
reference only and shall not constitute a part of this First Amendment for any other purpose or be given any substantive effect. 

        D.    Applicable Law.    THIS FIRST AMENDMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE
GOVERNED BY, AND SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK, WITHOUT REGARD TO CONFLICTS OF LAWS PRINCIPLES. 

        E.    Counterparts; Effectiveness.    This First Amendment may be executed in any number of counterparts and by
different parties hereto in separate counterparts, each of which when so executed and delivered shall be deemed an original, but all such counterparts together shall constitute but one and the same
instrument; signature pages may be detached from multiple separate counterparts and attached to a single counterpart so that all signature pages are physically attached to the same document. This
First Amendment (other than the provisions of Section 1 hereof, the effectiveness of which is governed by Section 2 hereof) shall become effective upon the execution of a counterpart
hereof by each Loan Party and the Required Lenders and receipt by the Administrative Agent of written or telephonic notification of such execution and authorization of delivery thereof. 

Section 5.    ACKNOWLEDGEMENT AND CONSENT BY CREDIT SUPPORT PARTIES  

        Each of the Guarantors is a party to the First Amended and Restated Guarantee Agreement and certain of the First Amended and Restated Security Documents. The
Guarantors are collectively referred to herein as the "Credit Support Parties," and the First Amendment and Restated Guarantee Agreement and the First
Amendment and Restated Security Documents are collectively referred to herein as the "Credit Support Documents." 

        Each
Credit Support Party hereby acknowledges that it has read this First Amendment and consents to the terms thereof, and hereby confirms and agrees that, notwithstanding the
effectiveness of this First Amendment, the obligations of each Guarantor under each Credit Support Document to which it is a party or otherwise bound shall not be impaired or affected and each Credit
Support Document is, and shall continue to be, in full force and effect and is hereby confirmed and ratified in all respects. Each Guarantor further agrees that nothing in the Credit Agreement, this
First Amendment or any other Loan Document shall be deemed to require the consent of such Guarantor to any future amendment to the Credit Agreement. 

[Remainder
of page intentionally left blank] 

4                                        
                        (First Amendment)

 

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

	
FLOWSERVE CORPORATION, as the Borrower	

 
	

By:	
 	

 	
 	

 	

 
	 	 	
	 
	 	 	Name:	 	 	 
	 	 	 	 	
	 
	 	 	Title:	 	 	 
	 	 	 	 	
	 
	
FLOWSERVE FRANCE SAS, societe par actions simplifiee organized under the laws of France, as the Subsidiary Borrower	

 
	

By:	
 	

 	
 	

 	

 
	 	 	
	 
	 	 	Name:	 	 	 
	 	 	 	 	
	 
	 	 	Title:	 	 	 
	 	 	 	 	
	 
	
FLOWSERVE US INC.

FLOWSERVE INTERNATIONAL, INC.

FLOWSERVE MANAGEMENT COMPANY

BW/IP-NEW MEXICO, INC.

FLOWSERVE INTERNATIONAL, LLC

INGERSOLL-DRESSER PUMP COMPANY

FLOWSERVE HOLDINGS, INC.

(for purposes of Section 5 only) as Credit Support Parties	

 
	

By:	
 	

 	
 	

 	

 
	 	 	
	 
	 	 	Name:	 	John M. Nanos	 
	 	 	Title:	 	Vice President	 
	
FLOWSERVE FINANCE B.V., (for purposes of Section 5 only) as a Credit Support Party	

 
	

By:	
 	

 	
 	

 	

 
	 	 	
	 
	 	 	Name:	 	John M. Nanos	 
	 	 	Title:	 	Managing Director	 
	

By:	
 	

 	
 	

 	

 
	 	 	
	 
	 	 	Name:	 	 	 
	 	 	 	 	
	 
	 	 	Title:	 	Managing Director	 

5                                        
                        (First Amendment)

 

	
FLOWSERVE INTERNATIONAL LIMITED

FLOWSERVE FLOW CONTROL (UK) LIMITED, (for purposes of Section 5 only) as Credit Support Parties	

 
	

By:	
 	

 	
 	

 	

 
	 	 	
	 
	 	 	Name:	 	John M. Nanos	 
	 	 	Title:	 	Director	 
	
BANK OF AMERICA, N.A., individually and as the Administrative Agent, the Collateral Agent and the Swingline Lender	

 
	

By:	
 	

 	
 	

 	

 
	 	 	
	 
	 	 	Name:	 	 	 
	 	 	 	 	
	 
	 	 	Title:	 	 	 
	 	 	 	 	
	 
	
CREDIT SUISSE FIRST BOSTON, individually and as the Syndication Agent	

 
	

By:	
 	

 	
 	

 	

 
	 	 	
	 
	 	 	Name:	 	 	 
	 	 	 	 	
	 
	 	 	Title:	 	 	 
	 	 	 	 	
	 
	

By:	
 	

 	
 	

 	

 
	 	 	
	 
	 	 	Name:	 	 	 
	 	 	 	 	
	 
	 	 	Title:	 	 	 
	 	 	 	 	
	 
	
                                    , as a
Lender	

 
	

By:	
 	

 	
 	

 	

 
	 	 	
	 
	 	 	Name:	 	 	 
	 	 	 	 	
	 
	 	 	Title:	 	 	 
	 	 	 	 	
	 

6                                        
                        (First Amendment)

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Exhibit 10.55

FLOWSERVE CORPORATION FIRST AMENDMENT TO FIRST AMENDED AND RESTATED CREDIT AGREEMENTQuickLinks
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CONFIDENTIAL TREATMENT REQUESTED  

***
Certain portions of this exhibit were omitted and marked with "***". Copies of this exhibit containing the omitted information have been filed separately with the Securities and Exchange
Commission pursuant to the Company's Application for Confidential Treatment under Rule 24b-2 under the Securities Exchange Act of 1934. 

 
 

Exhibit 10.1    
    

SUPPLY AGREEMENT  

        This agreement is entered into on June 30, 2003, between: 

        HUNTSMAN HOLLAND BV (hereinafter referred to as "Huntsman"), having its registered office at Merseyweg 10, NL-3197 KG Botlek RT,
Rozenburg, The Netherlands; and 

        HAM LLC (hereinafter referred to as "Customer"), having its registered office at 500 Huntsman Way, Salt Lake City, UT 84108 

        Conditions Precedent:    this agreement will only become effective upon the consummation of the proposed acquisition of the
Vantico Group of Companies by Matlin Patterson. 

        Huntsman
and Customer have agreed subject to the Conditions Precedent above on the following terms and conditions for the sale and supply of certain products by Huntsman (seller) to
Customer (buyer). 

        Products:    JEFFAMINES® including those listed in the Price/Price Review clause of this agreement. 

        Material Safety Data Sheets (MSDS):    Attached hereto in Annex 1. 

        Specifications:    As attached hereto in Annex 2. 

        Duration:    From the date of consummation of the proposed acquisition of the Vantico Group of Companies by Matlin Patterson
until *** ("Initial Duration"). Thereafter this Agreement shall automatically continue for successive periods of one calendar year, unless either party terminates this Agreement by giving at least six
(6) months written notice prior to the end of the Initial Duration or, thereafter, prior to the end of the then current calendar year. 

***
Portions of this paragraph have been omitted pursuant to a request for confidential treatment filed separately with the Commission. 

        Quantity—Huntsman's Maximum Supply Obligation:    *** te per calendar year in total for the various grades listed in
the Price/Price Review clause of this agreement. Quantities for the remaining part of 2003 after the start date of the Initial Duration shall be calculated from this on a pro-rata basis. 

***
Portions of this paragraph have been omitted pursuant to a request for confidential treatment filed separately with the Commission. 

        Quantity—Customer's Minimum Purchase Obligation:    *** te per calendar year in total for the various grades listed
in the Price/Price Review clause of this agreement. Quantities for the remaining part of 2003 after the start date of the Initial Duration shall be calculated from this on a pro-rata
basis. In the event that Customer's total annual requirement for Product falls below the minimum obligation to purchase, Customer will not be obligated to purchase from Huntsman quantities in excess
of those required. 

***
Portions of this paragraph have been omitted pursuant to a request for confidential treatment filed separately with the Commission. 

 

Forecasting: 

        Annual
Forecast: For the year 2003, Customer expects its requirements for the products to be *** te in total for the various grades listed in the Price/Price Review clause of this
agreement. Requirements for the remaining part of 2003 after the start date of the Initial Duration shall be calculated from this on a pro-rata basis. Customer will provide to Huntsman an
annual forecast for each calendar year following 2003 during the fourth quarter of the preceding calendar year. 

***
Portions of this paragraph have been omitted pursuant to a request for confidential treatment filed separately with the Commission. 

        Rolling
Forecast: The Customer shall provide Huntsman with a rolling three month forecast of the quantities required by Customer location and grade. The first month of this forecast
shall be regarded as a binding commitment. 

        Quality:    Huntsman warrants that the products supplied to Customer hereunder shall meet the attached specifications.
Otherwise, Huntsman makes no other warranty, whether express or implied, including warranties of merchantability or fitness for any particular purpose or otherwise. 

        Price/Price Review:    Prices for the year 2003 are as follows and subject to the price matching clause below: 

        Drum
pricing is also valid for grouped products. 

	GRADE
	 	PRICE (EURO/TE)

	D 230	 	Bulk (min 24-25 T)	 	*** DDP European Locations
	 	 	IBC full truck delivered	 	***
	DRUMS	 	 
	D 230	 	Min. 10 T lots	 	***
	 	 	Min. 5 T lots	 	***
	D 400	 	Min. 10 T lots	 	***
	 	 	Min. 5 T lots	 	***
	D 2000	 	Min. 10 T lots	 	***
	 	 	Min. 5 T lots	 	***
	T 403	 	Min. 10 T lots	 	***
	 	 	Min. 5 T lots	 	***
	Acc. 399	 	Min. 10 T lots	 	***
	 	 	Min. 5 T lots	 	***

***
Portions of this table have been omitted pursuant to a request for confidential treatment filed separately with the Commission. 

        For
each subsequent calendar year, the price will be mutually agreed during the fourth quarter of the preceding calendar year. 

        Payment Term:    End of the month of invoice. 

	GRADE
	 	VOLUME (LBS)
	 	PRICE (USD/LB)

	RUBINATE 1820	 	***	 	***
	RUBINATE 2020	 	***	 	***
	RUBINATE 3050	 	***	 	***
	RUBINATE 5005	 	***	 	***

***
Portions of this table have been omitted pursuant to a request for confidential treatment filed separately with the Commission. 

2

 

        For
each subsequent calendar year, prices will be mutually agreed during the fourth quarter of the preceding calendar year. 

        Payment Term:    End of the month of invoice. 

        Delivery Terms:    Delivered Duty Paid (DDP—Incoterms 2000) to any customer site. 

Shipment—Minimum Packaging: 

        Parties
shall from time to time separately agree on required transportation, product handling and ordering procedures. 

        Other Terms:    Other ordering, quality control, transportation, product handling and other supply chain formalities will be
separately agreed between the parties from time to time. In addition, Huntsman's General Terms and Conditions of Sale ("GT&C") shall apply. In case of deviation between these GT&C and the terms of
this Agreement, the latter shall prevail. 

        Applicable Law—Jurisdiction:    Dutch law—Courts of Rotterdam, The Netherlands. 

        The
parties have caused this Agreement to be executed in two (2) originals by their duly authorized and empowered representatives and each party acknowledges having receiving its
original. 

	
Huntsman Holland BV	
 	
Huntsman Advanced Materials LLC
	

by:  /s/  M.J. VAN DE MEER      
 Name:  MJ van de Meer

Title:    Managing Director

Date: 30 June 2003	
 	

by:  /s/  JOHN R. HESKETT      
 Name:  John R. Heskett

Title:    Vice President

Date: June 30, 2003

Annex 1: Material Safety Data Sheets 

Annex 2: Specifications of Products 

3

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Exhibit 10.1

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