Document:

Exhibit 10.2

 

WAIVER

 

THIS WAIVER TO AMENDED AND RESTATED CREDIT AND
SECURITY AGREEMENT (this “Waiver”)
is entered into as of January 30, 2006 among PRECISION RECEIVABLES CORP.,
a Delaware corporation (the “Borrower”),
PRECISION CASTPARTS CORP., a Delaware corporation (“PCC”),
VARIABLE FUNDING CAPITAL COMPANY LLC,
a Delaware limited liability company (“VFCC”),
and WACHOVIA BANK, NATIONAL ASSOCIATION (f/k/a Wachovia Bank, N.A.), a national
banking association, in its capacity as a Liquidity Bank to VFCC (“Wachovia”), and WACHOVIA BANK, NATIONAL
ASSOCIATION (f/k/a Wachovia Bank, N.A.), as agent for the Lenders (in such
capacity, the “Agent”) and pertains to the Amended
and Restated Credit and Security Agreement among the parties hereto, dated as
of January 31, 2001 (as heretofore amended, the “Existing Agreement”).  Capitalized terms used and not otherwise
defined herein are used with the meanings attributed thereto in the Existing
Agreement.

 

BACKGROUND

 

WHEREAS,
the Loan Parties desire that the Agent and the Lenders agree to a waiver of certain
financial reporting covenants in the Existing Agreement; and

 

WHEREAS,
the Agent and the Lenders are willing to agree to such waiver on the terms and
subject to the conditions set forth in this Waiver;

 

NOW THEREFORE,
in consideration of the promises and mutual agreements herein contained, the
parties hereto agree as follows:

 

1.             Partial Waiver of Section 7.2(a)(i) of
the Existing Agreement.  Solely with
respect to PCC’s obligation to deliver financial statements for the fiscal quarters
ending October 2, 2005 and January 1, 2006, the Agent and the Lenders
hereby waive the provisions of Section 7.2(a)(i); provided that PCC furnishes
to the Agent the financial statements and Certificate of Financial Officer
required thereby for the fiscal quarters ended October 2, 2005 and January 1,
2006 no later than March 31, 2006.

 

2.             Partial Waiver of Section 7.2(a)(ii) of
the Existing Agreement.  Solely with
respect to Borrower’s obligation to deliver financial statements for the fiscal
quarters ending October 2, 2005 and January 1, 2006, the Agent and
the Lenders hereby waive compliance with the provisions of Section 7.2
(a)(ii); provided that Borrower furnishes to the Agent the financial statements
and Certificate of Financial Officer required thereby for the fiscal quarters
ended October 2, 2005 and January 1, 2006 no later than March 31,
2006.

 

3.             Partial Waiver of Section 10.1(d)(ii) of
the Existing Agreement.

 

(a)           The Agent and the Lenders hereby waive any Defaults or
Events of Default pursuant to Section 10.1(d)(ii)(B) of the Existing
Agreement that have occurred or may occur solely as a result of the breach of Section 10.1(a) of
the Private Note Amendment (as defined in that certain Amended and Restated
Credit Agreement dated as of October 14, 2005 by, among others, PCC, as
borrower thereunder, and Bank of America, N.A., as administrative agent
thereunder, as amended) due to the failure of PCC to deliver the financial
statements required

 

 

thereby for its fiscal quarters ended
October 2, 2005 and January 1, 2006; provided
that the waiver granted hereunder shall expire at such time, if
any, as an “Event of Default” (under and as defined in the Private Note
Amendment) arises by virtue of such breach of Section 10.1(a) thereof.

 

(b)           The Agent and the Lenders hereby waive any Defaults or
Events of Default pursuant to Section 10.1(d)(ii)(B) of the Existing Agreement
that have occurred or may occur solely as a result of the breach of Section 704
of the Public Indenture (as defined in the Bank Credit Agreement) due to the
failure of PCC to deliver the financial statements required thereby for PCC’s fiscal
quarters ended October 2, 2005 and January 1, 2006; provided that the waiver granted
hereunder shall expire at such time, if any, as an “Event of Default” (under
and as defined in the Public Indenture) arises by virtue of such breach of Section 704
thereof.

 

4.             Conditions to Effectiveness. 
This Waiver shall not be effective until the following conditions are
satisfied:

 

(a)           the Agent has received signature page counterparts
from each of the parties hereto; and

 

(b)           the Agent has received an executed and effective waiver
of the occurrence of any defaults or events of default pursuant to the breach
of Section 10.1(a) of the Private Note Amendment and any cross-default
provisions contained in the Private Note Amendment triggered by the breach of
Sections 7.2(a)(i) and 7.2(a)(ii) of the Existing Agreement and Section 704
of the Public Indenture.

 

5.             Continuing Effect.  Except as expressly amended above,
the Existing Agreement remains unaltered and in full force and effect and is
hereby ratified and confirmed.

 

6.             Binding Effect. 
This Waiver shall become effective when it shall have been executed and
delivered by each of the parties hereto and thereafter shall be binding upon
and inure to the benefit of the Loan Parties, the Lenders, the Agent and their
respective successors and assigns.

 

7.             Expenses. 
The Borrower agrees to pay all reasonable costs and expenses incurred by
the Agent in connection with the preparation, execution, delivery,
administration and enforcement of, or any breach of this Waiver, including
without limitation the reasonable fees and expenses of counsel.

 

8.             GOVERNING LAW. 
THIS WAIVER SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE
LAW OF THE STATE OF NEW YORK (WITHOUT GIVING EFFECT TO THE CONFLICT OF LAWS
PRINCIPLES THEREOF (OTHER THAN SECTION 5-1401 OF THE NEW YORK GENERAL
OBLIGATIONS LAW)).

 

9.             Counterparts. 
This Waiver may be executed in any number of counterparts, each of which
when so executed shall be deemed to be an original and all of which when taken
together shall constitute one and the same agreement.  Delivery of an executed counterpart of a
signature page to this Waiver by facsimile shall be effective as delivery
of a manually executed counterpart of this Waiver.

 

2Exhibit 10.3

 

Execution Version

 

January 31, 2006

 

Precision Castparts Corp.

Executive Office, Suite 440

4650 S.W. Macadam Avenue

Portland, Oregon 97201-4254

Attention:  Mr. William D. Larsson

 

Re:          Amendment
No. 3 and Waiver to Credit Agreement

 

Ladies and Gentlemen:

 

Reference is hereby made
to that certain Amended and Restated Credit Agreement dated as of October 14,
2005 by and among PRECISION CASTPARTS CORP.,
an Oregon corporation (the “Borrower”), as the Borrower, BANK OF AMERICA, N.A., a national banking
association organized and existing under the laws of the United States, in its
capacity as administrative agent for the Lenders (as defined in the Credit
Agreement (as defined below)) (in such capacity, the “Administrative Agent”),
and the Lenders, as amended by Amendment No. 1 and Waiver to Credit
Agreement dated as of November 16, 2005, as amended by Amendment No. 2
and Waiver to Credit Agreement dated as of December 16, 2005 (as so
amended, as hereby amended and as from time to time hereafter amended,
modified, supplemented, restated, or amended and restated, the “Credit
Agreement”).  All capitalized terms
not otherwise defined herein shall have the meaning given thereto in the Credit
Agreement.

 

Effective as of the date
hereof, pursuant to the request of the Borrower, each of the Administrative Agent by its
execution of this amendment letter (this “Amendment Letter”) and the
Lenders, by execution of this Amendment Letter by the Required Lenders, as
acknowledged by the Borrower, hereby agrees, subject to the terms and
conditions set forth herein:

 

(i)            to amend Section 6.01(b) of
the Credit Agreement by deleting such subsection in its entirety and
replacing it with the following:

 

(b)           as soon as
available, but in any event not later than (i) March 31, 2006, for
each of the fiscal quarters of the Borrower ended October 2, 2005 and January 1,
2006, and (ii) the earlier of the day that is forty-five (45) days after
the end of each of the first three fiscal quarters of each fiscal year of the
Borrower and the day that is five days after the date required to be filed with
the SEC (without giving effect to any extension permitted by the SEC) for such
fiscal

 

 

quarter,
commencing with the fiscal quarter of the Borrower ended July 2, 2006, a
consolidated balance sheet of the Borrower and its Subsidiaries as at the end
of such fiscal quarter, and the related consolidated statements of income or
operations, shareholders’ equity and cash flows for such fiscal quarter and for
the portion of the Borrower’s fiscal year then ended, setting forth in each
case in comparative form the figures for the corresponding fiscal quarter of
the previous fiscal year and the corresponding portion of the previous fiscal
year, all in reasonable detail and certified by a Responsible Officer of the
Borrower as fairly presenting the financial condition, results of operations,
shareholders’ equity and cash flows of the Borrower and its Subsidiaries in
accordance with GAAP, subject only to normal year-end audit adjustments and the
absence of footnotes;

 

(ii)           to waive
any and all Defaults or Events of Default pursuant to Section 8.01(c) of
the Credit Agreement having occurred or to occur as a result of a breach of Section 6.09
of the Credit Agreement with respect to the Disclosed Matters (defined below)
until March 31, 2006;

 

(iii)          to
waive any Defaults or Events of Default pursuant to Section 8.01(e) of
the Credit Agreement having occurred or to occur as a result of the Borrower’s
breach of Section 10.1(a) of the Private Note Amendment for
the failure of the Borrower to deliver the financial statements for each of the
fiscal quarters of the Borrower ended October 2, 2005 and January 1,
2006, as required therein, until the date as of which the Borrower must comply
with such Section pursuant to an amendment to the Private Note Amendment
(the “Third Amendment to the
Private Note Amendment”) entered into on or prior to the date hereof but
after the date of Amendment No. 2 to Amended and Restated Note Purchase Agreement, dated December 15,
2005;

 

(iv)          to waive
any Defaults or Events of Default pursuant to Section 8.01(e) of
the Credit Agreement having occurred or to occur as a result of the Borrower’s
breach of Section 704 of the Public Indenture for the failure of
the Borrower to deliver the financial statements for each of the fiscal
quarters of the Borrower ended October 2, 2005 and January 1, 2006,
as required therein, until such time as an “Event of Default” (as defined in
the Public Indenture) under the Public Indenture shall have occurred as a result
of the Borrower’s failure to comply with Section 704; and

 

(v)           to waive
any Defaults or Events of Default pursuant to Section 8.01(e) of
the Credit Agreement having occurred or to occur as a result of the Borrower’s
breach of Section 7.2 of the Permitted Receivables Purchase
Facility for the failure of the Borrower to deliver the financial statements
for each of the fiscal quarters of the Borrower ended October 2, 2005 and January 1,
2006, as required therein, until the later of (x) March 31, 2006 and (y)
such date as of which the Borrower must comply with such Section to which
the Majority Lenders (as defined in the Permitted Receivables Purchase
Facility) under the Permitted Receivables Purchase Facility may agree.

 

The waivers set forth in
this Amendment Letter are limited to the extent specifically set forth above
and shall in no way serve to waive compliance with such Sections of the Credit

 

 

Agreement for any other
period or to waive any other terms, covenants or provisions of the Credit
Agreement or any other Loan Document or any obligations of the Borrower, other
than as expressly set forth above.

 

The effectiveness of this
Amendment Letter and the amendment and waivers provided herein are subject to
the Administrative Agent having received each of the following:

 

(a)           original
or facsimile counterparts of this Amendment Letter, duly executed by the
Borrower, the Administrative Agent and the Required Lenders;

 

(b)           an upfront fee to each Lender executing this
Amendment Letter by 12:00 p.m. (New York, New York time) on January 31,
2006, for the account of each such Lender, equal to 2.5 basis points multiplied
by each such Lender’s pro-rata portion of the Aggregate Revolving
Credit Commitments immediately prior to
the effective date of this Amendment Letter;

 

(c)           a
fully-executed copy of the Third Amendment to the Private Notes Amendment, in
form and substance reasonably acceptable to the Administrative Agent; and

 

(d)           such other
documents, instruments, opinions, certifications, undertakings, further assurances
and other matters as the Administrative Agent shall reasonably request, each in
form and substance reasonably acceptable to the Administrative Agent.

 

In order to induce the
Administrative Agent and the Lenders to enter into this Amendment Letter, the
Borrower represents and warrants to the Administrative Agent and the Lenders as
follows:

 

(a)           the
representations and warranties of the Borrower and each other Loan Party
contained in Article V of the Credit Agreement and in each of the
other Loan Documents to which such Loan Party is a party are true and correct
on and as of the date hereof, except to the extent that such representations
and warranties expressly relate to an earlier date, and except that the
representations and warranties contained in Sections 5.05(a) and (c) of
the Credit Agreement shall be deemed to refer to the most recent statements
furnished pursuant to Sections 6.01(a) and (b),
respectively; provided that, the representations in Section 5.05(a) and
(b) with respect to the Borrower’s financial statements as of March 30,
2005 and July 3, 2005 are qualified by the fact that certain accrued
liability items, reserve accounts and related amortization and release amounts
may need to be adjusted to conform with GAAP, and revenue from certain
shipments may need to be included in the financial statements for the fiscal
year ended April 3, 2005 rather than in the financial statements for the
subsequent quarter, all in a manner not materially different than that
described in the Borrower’s disclosure on Form 12b-25 filed November 15,
2005 (the “Disclosed Matters”);

 

(b)           neither
the Borrower nor any of its Subsidiaries has received any “Notice of Default”
or other similar notice from the trustee or any holder of any of the Public
Notes with respect to the Borrower’s failure to deliver the financial
statements for either

 

 

of the
fiscal quarters of the Borrower ended October 2, 2005 and January 1,
2006 within the time provided by Section 704 of the Public
Indenture;

 

(c)           since the
date of the most recent financial reports of the Borrower delivered pursuant to
Section 6.01 of the Credit Agreement, no act, event, condition or
circumstance (including the Disclosed Matters) has occurred or arisen which,
singly or in the aggregate with one or more other acts, events, occurrences or
conditions (whenever occurring or arising), has had or could reasonably be
expected to have a Material Adverse Effect;

 

(d)           the
Permitted Receivables Purchase Facility has been amended on or before the date
hereof to extend the date for the Borrower to deliver the financial statements
for each of the fiscal quarters of the Borrower ended October 2, 2005 and January 1,
2006, as required therein, until a date not earlier than March 31, 2006;
and

 

(e)           after
giving effect to this Amendment Letter, no Default or Event of Default has
occurred and is continuing.

 

None of the terms or
conditions of this Amendment Letter may be changed, modified, waived, or
canceled, except in the manner as provided in the Credit Agreement with respect
to any such change, modification, waiver, or cancellation.  Except as specifically amended, modified or
supplemented by this Amendment Letter, the Credit Agreement and all other Loan
Documents are hereby confirmed and ratified in all respects and shall be and
remain in full force and effect according to their respective terms.

 

Without limiting the
provisions of Section 10.04 of the Credit Agreement, the Borrower
agrees to pay all reasonable out of pocket costs and expenses (including
without limitation reasonable legal fees and expenses) incurred before or after
the date hereof by the Administrative Agent and its Affiliates in connection
with the preparation, negotiation, execution, delivery and administration of
this Amendment Letter.

 

This Amendment Letter
shall in all respects be governed by, and construed in accordance with, the
laws of the State of New York applicable to contracts executed and to be
performed entirely within such State, and shall be further subject to the
provisions of Sections 10.14 and 10.15 of the Credit Agreement.

 

This Amendment Letter may
be executed in any number of counterparts, each of which shall be deemed to be
an original as against any party whose signature appears thereon, and all of
which shall together constitute one instrument.

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