Document:

EXHIBIT 4.5

 

LOCK-UP AGREEMENT

 

LOCK-UP AGREEMENT
dated September 14, 2005 among (i) Certegy Inc., a Georgia corporation to be
renamed Fidelity National Information Services, Inc. (the “Company”),
and (ii) Banc of America Capital Investors, L.P. (“BACI”).

 

WHEREAS, the
Company, C Co Merger Sub, LLC, a Delaware limited liability company and a
direct wholly owned subsidiary of the Company (“Merger Co”), and
Fidelity National Information Services, Inc., a Delaware corporation (“F Co”)
have entered into an Agreement and Plan of Merger dated as of September 14,
2005 (as the same may be amended or supplemented, the “Merger Agreement”),
pursuant to and subject to the terms and conditions of which, among other
things, F Co will merge with and into Merger Co, with Merger Co surviving as a
wholly owned subsidiary of the Company (the “Merger”);

 

WHEREAS, upon
consummation of the Merger, BACI and the other shareholders of F Co (together,
the “Shareholders”) will Beneficially Own (as hereafter defined), in the
aggregate, 67.5% of the Fully Diluted Voting Securities (as hereafter defined);
and

 

WHEREAS, the parties
hereto desire to enter into this Agreement to establish certain arrangements
with respect to the shares of Common Stock to be Beneficially Owned by BACI and
its Affiliates following the Effective Time (as defined in the Merger
Agreement), as well as restrictions on certain activities in respect of the
Common Stock;

 

NOW, THEREFORE, in
consideration of the foregoing and the mutual covenants and agreements herein
contained, and intending to be legally bound hereby, the Company and BACI
hereby agree, subject to the conditions herein contained, as follows:

 

ARTICLE 1

INTERPRETATION

 

1.1          Certain
Defined Terms. 
As used in this Agreement, the following terms have the following
meanings:

 

“Affiliate”
means, with respect to BACI, any entity of which BACM I GP, LLC is the direct
or indirect general partner, and with respect to a specified Person other than
BACI, any other Person that directly, or indirectly through one or more
intermediaries, controls, is controlled by or is under common control with,
such specified Person, provided that, solely for purposes of this
Agreement and notwithstanding anything to the contrary set forth herein,
neither the Company nor any of its Subsidiaries shall be deemed to be a
Subsidiary or Affiliate of BACI solely by virtue of BACI’s ownership of Common
Stock.  For the purposes of this
definition, “control” (including, with correlative meaning, all
conjugations thereof) means with respect to any Person, the ability of another
Person to control or direct the actions or policies of such first Person,
whether through the ownership of voting securities, by contract or otherwise.

 

“Agreement”
means this Lock-Up Agreement as it may be amended, supplemented, restated or
modified from time to time.

 

“Beneficial
Ownership” by a Person of any securities includes ownership by any Person
who, directly or indirectly, through any contract, arrangement, understanding,
relationship or otherwise, has or 

 

1

 

shares (i) voting power which
includes the power to vote, or to direct the voting of, such security; and/or
(ii) investment power which includes the power to dispose, or to direct the
disposition, of such security; and shall otherwise be interpreted in accordance
with the term “beneficial ownership” as defined in Rule 13d-3 adopted by the
SEC under the Exchange Act; provided that for purposes of determining
Beneficial Ownership, a Person shall be deemed to be the Beneficial Owner of
any securities which may be acquired by such Person pursuant to any agreement,
arrangement or understanding or upon the exercise of conversion rights,
exchange rights, warrants or options, or otherwise (irrespective of whether the
right to acquire such securities is exercisable immediately or only after the
passage of time, including the passage of time in excess of 60 days, the
satisfaction of any conditions, the occurrence of any event or any combination
of the foregoing).  The term “Beneficially
Own” shall have a correlative meaning.

 

“Board”
shall mean the Board of Directors of the Company.

 

“Capital
Stock” means, with respect to any Person at any time, any and all shares,
interests, participations or other equivalents (however designated, whether
voting or non-voting) of capital stock, partnership interests (whether general
or limited), membership interests, or equivalent ownership interests in or
issued by such Person.

 

“Common
Stock” means the Company’s common stock, par value $0.01 per share, and any
other class of common stock of the Company that may be created from time to
time, and any securities issued in respect thereof, or in substitution
therefor, in connection with any stock split, dividend or combination, or any
reclassification, recapitalization, merger, consolidation, exchange or other
similar reorganization.

 

“Director”
means any member of the Board (other than any advisory, honorary or other
non-voting member of the Board).

 

“Exchange
Act” shall mean the U.S. Securities Exchange Act of 1934, as amended, and
the rules and regulations promulgated by the SEC from time to time thereunder
(or under any successor statute).

 

“Fully
Diluted” means the number of Voting Securities, after giving effect to the
issuance of Voting Securities issuable under all outstanding options, warrants
or other rights or securities convertible or exchangeable into Voting
Securities.

 

“Going
Private Transaction” means any transaction that would constitute a “Rule
13e-3 transaction” under paragraph (a)(3) of Rule 13e-3 promulgated under the
Exchange Act as in effect on the date of this Agreement, without giving effect
to the exception set forth in paragraph (g)(2) thereof.

 

“Group”
shall have the meaning assigned to it in Section 13(d)(3) of the Exchange Act.

 

“Independent
Director” shall mean any Director who is or would be an “independent
director” with respect to the Company and with respect to F Co Parent pursuant
to Section 303A.02 of the New York Stock Exchange Listed Company Manual and
Section 10A of the Exchange Act (or any successor provisions).

 

“Person”
means a natural person, limited or general partnership, corporation, limited
liability company, joint-stock company, trust, unincorporated association,
joint venture, or other entity, government or any agency or political
subdivision thereof or any Group comprised of two or more of the foregoing, and
pronouns have a similarly extended meaning.

 

“Requisite
Independent Directors” shall mean, at any time of determination, a majority
of the Independent Directors.

 

2

 

“Sale of
the Company” means the consummation of a transaction, whether in a single
transaction or in a series of related transactions that are consummated
contemporaneously (or consummated pursuant to contemporaneous agreements), with
any other Person or Group on an arm’s-length basis other than a Shareholder or
any Affiliate of a Shareholder, pursuant to which such party or parties (a)
acquire (whether by merger, stock purchase, recapitalization, reorganization,
redemption, issuance of capital stock or otherwise) more than 50% of the Voting
Securities, or (b) acquire assets constituting all or substantially all of the
assets of the Company and its Subsidiaries on a consolidated basis; provided,
however, that in no event shall a Sale of the Company be deemed to
include any transaction effected for the sole purpose of (i) changing, directly
or indirectly, the form of organization or the organizational structure of the
Company or any of its Subsidiaries without affecting the Beneficial Ownership
or control of the Company, or (ii) contributing stock to entities controlled by
the Company.

 

“SEC”
means the United States Securities and Exchange Commission.

 

“Securities
Act” means the U.S. Securities Act of 1933, as amended, and the rules and
regulations promulgated by the SEC from time to time thereunder (or under any
successor statute).

 

“Subsidiary”
means, with respect to any Person, any corporation or other organization,
whether incorporated or unincorporated, (i) of which such Person or any other
Subsidiary of such Person is a general partner (excluding partnerships, the
general partnership interests of which are held by such Person or any
Subsidiary of such Person that do not have a majority of the voting interests
in such partnership), or (ii) at least a majority of the securities or other
interests of which having by their terms ordinary voting power to elect a
majority of the board of directors or others performing similar functions with
respect to such corporation or other organization is directly or indirectly
owned or controlled by such Person or by any one or more of its Subsidiaries,
or by such Person and one or more of its Subsidiaries.

 

“Transfer”
means, directly or indirectly, to sell, transfer, assign, pledge, encumber,
hypothecate or similarly dispose of (by operation of law or otherwise), either
voluntarily or involuntarily, or to enter into any contract, option or other
arrangement with respect to the sale, transfer, assignment, pledge,
encumbrance, hypothecation or similar disposition of (by operation of law or
otherwise), any Voting Securities or any interest in any Voting Securities.

 

“Voting
Securities” means at any time shares of any class of Capital Stock or other
securities of the Company which are then entitled to vote generally in the
election of Directors and not solely upon the occurrence and during the
continuation of certain specified events, and any securities convertible into
or exercisable or exchangeable for such shares of Capital Stock.

 

1.2          Interpretation.

 

(a)           Any reference in this Agreement to
gender shall include all genders.

 

(b)           The words “hereof,” “herein” and “hereunder”
and words of similar import when used in this Agreement shall refer to this
Agreement as a whole and not to any particular provision of this Agreement, and
Article and Section references are to this Agreement unless otherwise
specified.

 

(c)           The meanings given to terms defined
herein shall be equally applicable to both the singular and plural forms of
such terms.

 

(d)           Capitalized terms used but not
otherwise defined herein shall have the meanings ascribed thereto in the Merger
Agreement.

 

3

 

(e)           The table of contents and headings
contained in this Agreement are for reference purposes only and shall not
affect in any way the meaning or interpretation of this Agreement.

 

(f)            Whenever the words “include”, “includes”
or “including” are used in this Agreement, they shall be deemed to be followed
by the words “without limitation”.

 

1.3          Methodology
for Calculations. 
For purposes of calculating the number of outstanding shares of Common
Stock or Voting Securities and the number of shares of Common Stock or Voting
Securities Beneficially Owned by BACI and their its Affiliates as of any date,
any shares of Common Stock or Voting Securities held in the Company’s treasury
or belonging to any Subsidiaries of the Company which are not entitled to be
voted or counted for purposes of determining the presence of a quorum pursuant
to Section 14-2-721 of the Georgia Business Corporation Code or any successor
statute (the “GBCC”) shall be disregarded.

 

ARTICLE 2

REPRESENTATIONS AND WARRANTIES

 

2.1          Representations
and Warranties of the Company.  The Company hereby represents and warrants to
BACI:

 

(a)           it is a corporation duly organized,
validly existing and in good standing under the laws of the State of Georgia,
it has full power and authority to execute, deliver and perform this Agreement
and to consummate the transactions contemplated hereby, and the execution,
delivery and performance by it of this Agreement and the consummation of the
transactions contemplated hereby have been duly authorized by all necessary
corporate action;

 

(b)           this Agreement has been duly and validly
executed and delivered by it and constitutes a legal and binding obligation of
the Company, enforceable against it in accordance with its terms; and

 

(c)           the execution, delivery and
performance by the Company of this Agreement and the consummation by the
Company of the transactions contemplated hereby will not, with or without the
giving of notice or lapse of time, or both, (i) violate any provision of law,
statute, rule or regulation to which the Company is subject, (ii) violate any
order, judgment or decree applicable to the Company, or (iii) conflict with, or
result in a breach or default under, any term or condition of the Company’s
organizational documents or any agreement or instrument to which the Company is
a party or by which it is bound.

 

2.2          Representations
and Warranties of BACI.  BACI represents and warrants to the Company:

 

(a)           BACI is a limited partnership duly
formed, validly existing, and in good standing under the laws of the State of
Delaware, and has full power and authority to execute, deliver and perform this
Agreement and to consummate the transactions contemplated hereby, and the
execution, delivery and performance by BACI of this Agreement and the
consummation of the transactions contemplated hereby have been duly authorized
by all necessary partnership action of BACI.

 

(b)           this Agreement has been duly and
validly executed and delivered by BACI, and this Agreement constitutes a legal
and binding obligation of BACI, enforceable against BACI in accordance with its
terms; and

 

4

 

(c)           the execution, delivery and
performance by BACI of this Agreement and the consummation by BACI of the
transactions contemplated hereby will not, with or without the giving of notice
or lapse of time, or both, (i) violate any provision of law, statute, rule or
regulation to which BACI is subject, (ii) violate any order, judgment or decree
applicable to BACI, or (iii) conflict with, or result in a breach or default
under, any term or condition of any agreement or other instrument to which BACI
is a party or by which BACI is bound.

 

ARTICLE 3

TRANSFER RESTRICTIONS

 

3.1          General
Transfer Restrictions.

 

(a)           The right of BACI and its Affiliates
to Transfer any Voting Securities is subject to the restrictions set forth in
this Article 3, and no Transfer of Voting Securities by BACI or any of
its Affiliates may be effected except in compliance with this Article 3.  Any attempted Transfer in violation of this
Agreement shall be of no effect and null and void, regardless of whether the
purported transferee has any actual or constructive knowledge of the Transfer
restrictions set forth in this Agreement, and shall not be recorded on the
share transfer books of the Company.

 

(b)           BACI acknowledges and agrees:

 

(i)            BACI will not offer, sell, or
otherwise dispose of any shares of Common Stock except in compliance with the
Securities Act;

 

(ii)           BACI will not sell, transfer or
otherwise dispose of any shares of Common Stock unless (A) such sale, transfer
or other disposition is within the limitations of and in compliance with Rule
144 promulgated by the SEC under the Securities Act and BACI furnishes the
Company with reasonable proof of compliance with such Rule, (B) in the opinion
of counsel, reasonably satisfactory to the Company and its counsel, some other
exemption from registration under the Securities Act is available with respect
to any such proposed sale, transfer, or other disposition of Common Stock or
(C) the offer and sale of Common Stock is registered under the Securities Act.

 

3.2          Restrictions
on Transfer.

 

(a)           During an initial period of 180 days
following the Closing, BACI shall not Transfer or agree to Transfer, or permit
any of its Affiliates to Transfer or agree to Transfer, directly or indirectly,
any Voting Securities; provided, however, that the foregoing
restrictions shall not be applicable to Transfers:

 

(A)          to an Affiliate of BACI which agrees
in writing with the Company to be bound by this Agreement as if it were an
initial signatory hereto;

 

(B)           by BACI from and after the 90th day
following the Closing through the 180th day following the Closing, of up to 50%
of the Voting Securities owned by BACI immediately after the Effective Time;

 

(C)           with the Company’s prior written
consent (approved by the Requisite Independent Directors) or at the request of
the Requisite Independent Directors; or

 

(D)          by BACI pursuant to a Sale of the
Company.

 

5

 

3.3          Legend
on Securities.

 

(a)           Each certificate representing shares
of Common Stock Beneficially Owned by BACI or its Affiliates and subject to the
terms of this Agreement shall bear the following legends on the face thereof:

 

“THE
SECURITIES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO RESTRICTIONS ON
TRANSFER AND CERTAIN OTHER LIMITATIONS SET FORTH IN A CERTAIN LOCK-UP AGREEMENT
DATED AS OF SEPTEMBER 14, 2005, AMONG CERTEGY INC. (THE “COMPANY”) AND BANC OF
AMERICA CAPITAL INVESTORS L.P., AS THE SAME MAY BE AMENDED FROM TIME TO TIME
(THE “AGREEMENT”), COPIES OF WHICH AGREEMENT ARE ON FILE AT THE PRINCIPAL
OFFICE OF THE COMPANY.”

 

“THIS SECURITY
HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
ACT”), AND MAY NOT BE OFFERED OR SOLD UNLESS IT HAS BEEN REGISTERED UNDER THE
SECURITIES ACT OR UNLESS AN EXEMPTION FROM REGISTRATION IS AVAILABLE (AND, IN
SUCH CASE, IF REQUESTED BY THE COMPANY, AN OPINION OF COUNSEL REASONABLY
SATISFACTORY TO THE COMPANY SHALL HAVE BEEN DELIVERED TO THE COMPANY TO THE
EFFECT THAT SUCH OFFER OR SALE IS NOT REQUIRED TO BE REGISTERED UNDER THE
SECURITIES ACT).”

 

(b)           Upon any acquisition by BACI or any
of its Affiliates of additional shares of Common Stock, BACI shall, or shall
cause its Affiliate to, submit the certificates representing such shares of
Common Stock to the Company so that the legend required by this Section 3.3
may be placed thereon (if not so endorsed upon issuance).

 

(c)           The Company may make a notation on
its records or give instructions to any transfer agents or registrars for the
Common Stock in order to implement the restrictions on Transfer set forth in
this Agreement.

 

(d)           In connection with any Transfer of
shares of Common Stock, the transferor shall provide the Company with such
customary certificates, opinions and other documents as the Company may reasonably
request to assure that such Transfer complies fully with this Agreement and
with applicable securities and other laws.

 

ARTICLE 4

MISCELLANEOUS

 

4.1          Notices.  Any notice, direction or other communication
to be given under this Agreement shall be in writing and given by delivering it
or sending it by facsimile or other similar form of recorded communication
addressed:

 

If to the Company (prior to the Effective Time):

 

Certegy Inc.

100 Second
Avenue South

Suite 1100S

St.
Petersburg, FL 33701

Attention:  Walter M. Korchun

Facsimile:  (727) 227-8558

 

6

 

with copies to:

 

Kilpatrick
Stockton LLP

1100 Peachtree
Street, Suite 2800

Atlanta, GA
30309

Attention:  W. Stanley Blackburn, Esq.

Bruce D.
Wanamaker, Esq.

Facsimile:  (404) 541-3132

 

and

 

Covington
& Burling

1201
Pennsylvania Avenue, NW

Washington, DC
20004-7566

Attention
Bruce S. Wilson

Facsimile:  (202) 778-5400

 

and

 

Covington
& Burling

1330 Avenue of
the Americas

New York, NY
10019

Attention
Stephen A. Infante

Facsimile:  (646) 441-9039

 

If to the Company (after the Effective Time):

 

Fidelity
National Information Services, Inc

601 Riverside
Avenue

Jacksonville,
FL 32204

Attention:  Christopher Rose

Facsimile
No.:  (904) 357-1026

 

with copies to:

 

Weil, Gotshal
& Manges LLP

100 Federal
Street

Boston, MA
02110

Attention:  James Westra, Esq.

Marilyn
French, Esq.

Facsimile:  (617) 772-8333

 

Fidelity
National Financial, Inc.

601 Riverside
Avenue

Jacksonville,
FL 32204

Attention:  Christopher Rose

Facsimile:  (904) 357-1026

 

7

 

If to BACI:

 

Banc of
America Capital Investors, L.P.

Bank of
America Corporate Center

100 North
Tryon Street, 25th Floor

NC1-007-25-02

Charlotte, NC
28255

Attention:  Robert L. Edwards, Jr.

Facsimile:  (704) 386-6432

 

with copies to:

 

Weil, Gotshal
& Manges LLP

100 Federal
Street

Boston, MA
02110

Attention:  James Westra, Esq.

Marilyn
French, Esq.

Facsimile:  (617) 772-8333

 

and

 

Kennedy
Covington Lobdell & Hickman, L.L.P.

Hearst Tower

214 North
Tryon Street, 47th Floor

Charlotte, NC
28202

Attention:  T. Richard Giovannelli

Facsimile:  (704) 353-3184

 

Any such communication shall be
deemed to have been validly and effectively given (i) if personally delivered,
on the date of such delivery if such date is a business day and such delivery
was made prior to 4:00 p.m. (New York time) and otherwise on the next business
day, or (ii) if transmitted by facsimile or similar means of recorded
communication on the business day following the date of transmission.  Any party may change its address for service
from time to time by notice given in accordance with the foregoing and any
subsequent notice shall be sent to such party at its changed address.

 

4.2          Amendments;
Termination. 
This Agreement may be amended, supplemented or otherwise modified only
by written agreement of each of the parties hereto.  This Agreement will terminate upon the
earliest to occur of (a) the consummation of a Going Private Transaction, (b) the
consummation of a Sale of the Company or (c) the 180th day following the
Closing.  Nothing in this Section 4.2
shall be deemed to release any party from any liability for any willful and
material breach of this Agreement occurring prior to the termination hereof or
to impair the right of any party to compel specific performance by any other
party of its obligations under this Agreement.

 

4.3          Waiver.  No waiver of any of the provisions of this
Agreement shall be deemed to constitute a waiver of any other provision
(whether or not similar) nor shall such waiver be binding unless executed in
writing by the party to be bound by the waiver. 
No failure on the part of any party to exercise, and no delay in
exercising, any right under this Agreement shall operate as a waiver of such
right; nor shall any single or partial exercise of any such right preclude any
other or further exercise of such right of the exercise of any other
right.  All actions and decisions of the
Company relating to the enforcement of this Agreement shall be exercised by or
under the authority of the Requisite Independent Directors.

 

8

 

4.4          Successors
and Assigns. 
Neither this Agreement nor any of the rights or obligations under this
Agreement is assignable or transferable by any party without the prior written
consent of the other parties.  This
Agreement is binding upon and inures to the benefit of the parties and their
respective successors and permitted assigns. 
For this purpose, a successor includes any person that acquires control
of all or substantially all the assets of one of the parties.

 

4.5          Severability.
In case any provision in this Agreement shall be held invalid, illegal or
unenforceable in any respect for any reason, the validity, legality and
enforceability of any such provision in every other respect and the remaining
provisions shall not in any way be affected or impaired thereby.

 

4.6          Governing
Law.  This
Agreement is governed by and interpreted and enforced in accordance with the
laws of the State of New York without regards to principles of conflicts of law
State (other then those provisions set forth herein that are required to be
governed by the GBCC).  Each party hereto
irrevocably submits to the non-exclusive jurisdiction of the courts of the
State of New York with respect to any matters arising hereunder or relating
hereto.

 

4.7          Counterparts.  This Agreement may be executed in any number
of counterparts and all such counterparts taken together are deemed to
constitute one and the same instrument.

 

4.8          Entire
Agreement. 
Except as otherwise expressly set forth herein, this Agreement and the
Merger Agreement, together with the several agreements and other documents and
instruments referred to herein or therein or annexed hereto or thereto, embody
the complete agreement and understanding among the parties hereto with respect
to the subject matter hereof and supersede and preempt any prior
understandings, agreements or representations by or among the parties, written
or oral, that may have related to the subject matter hereof in any way.  Without limiting the generality of the
foregoing, to the extent that any of the terms hereof are inconsistent with the
rights or obligations of BACI under any other agreement with the Company, the
terms of this Agreement shall govern.

 

4.9          Estoppel.  No failure or delay in exercising any right,
power or privilege under this Agreement will operate as a waiver thereof, nor
will any single or partial exercise thereof preclude any other or further
exercise thereof or the exercise of any right, power or privilege under this
Agreement.

 

4.10        Conflicting
Agreements. 
Each party represents and warrants that it has not granted and is not a
party to any proxy, voting trust or other agreement that is inconsistent with
or conflicts with any provision of this Agreement.

 

4.11        Effectiveness.  This Agreement shall become effective upon
the Closing and prior thereto shall be of no force or effect.  If the Merger Agreement shall be terminated
in accordance with its terms prior to the Closing, this Agreement shall
automatically be of no force or effect.

 

*  *  * 
*  *

 

9

 

IN WITNESS WHEREOF,
the parties hereto have executed this Agreement on the day and year first above
written.

 

	
   

  	
  COMPANY:

  
	
   

  	
   

  	
   

  
	
   

  	
  CERTEGY INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ LEE A. KENNEDY

  	
   

  
	
   

  	
   

  	
  Name: Lee A. Kennedy

  
	
   

  	
   

  	
  Title: Chairman and Chief Executive Officer

  
	
   

  	
   

  	
   

  
	
   

  	
  BACI:

  
	
   

  	
   

  	
   

  
	
   

  	
  BANC OF
  AMERICA CAPITAL INVESTORS, L.P.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  Banc of
  America Capital Management, L.P., its

  
	
   

  	
   

  	
  General
  Partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  BACM I GP,
  LLC, its General Partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
   /s/ J. TRAVIS HAIN

  	
   

  
	
   

  	
   

  	
  Name: J. Travis Hain

  
	
   

  	
   

  	
  Title: Managing Partner

  
								

 

 

Schedule 1

	
  Name

  of Shareholder

  	
   

  	
  Number of Subject Shares

  Owned of Record or Beneficially

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Banc of America Capital Investors, L.P.

  	
   

  	
  2,000,000Exhibit 10.1

 

[Execution Form ]

 

PRECISION CASTPARTS CORP.

4650 S.W. Macadam Avenue

Portland, Oregon 97201-4254

 

 

AMENDMENT NO. 3

To

Amended and Restated Note Purchase

Agreement, dated as of December 9, 2003, as
amended by

Amendment No. 1 dated as of November 25,
2005 and

Amendment No. 2 dated as of December 15,
2005

 

 

As of January 31,
2006

 

To Each Noteholder
Identified

on the Signature Pages Hereof:

 

Ladies and Gentlemen:

 

Reference
is hereby made to the Amended and Restated Note Purchase Agreement, dated as of
December 9, 2003, as heretofore amended by Amendment No. 1 thereto
dated as of November 25, 2005 and Amendment No. 2 thereto dated as of
December 15, 2005, (as so amended, the “Amended Note
Agreement”; such Amendment No. 1 and Amendment No. 2 being
referred to herein as the “Prior Amendments”),
by and between Precision Castparts Corp., an Oregon corporation (the “Company”), and the several institutional holders of the SPS
Notes referred to below, which, in connection with the Merger referred to therein,
provided for (i) the assumption by the Company of the obligations of SPS
Technologies, Inc., a Pennsylvania corporation (“SPS”),
under and in respect of the SPS Note Agreements and the SPS Notes referred to
below, in each case as amended and restated pursuant to the Amended Note
Agreement; (ii) the amendment and restatement as provided therein of:

 

(a)                                  the Note Purchase Agreement, dated as of June 17,
1996 (as theretofore amended, the “1996 SPS Note Agreement”),
by and between SPS , and the institutional investors identified therein,
pursuant to which SPS had theretofore issued and sold, and such institutional
investors had purchased, SPS’s 7.88% Series A Senior Notes due 2011 (the “1996 Series A Notes”) and its 7.70% Series B
Senior Notes due 2011 (the “1996 Series B Notes”);

 

(b)                                 the Note Purchase Agreement, dated as of August 4,
1999 (as theretofore amended, the “1999 SPS Note Agreement”),
by and between SPS and the institutional investors identified therein, pursuant
to which SPS had theretofore issued and sold, and such institutional investors
had purchased, SPS’s 7.85% Series A Senior Notes due 2014 (the “1999 Series A Notes”) and its 7.75% Series B
Senior Notes due 2009 (the “1999 Series B Notes”);
and

 

 

(c)                                  the Note Purchase Agreement, dated as of February 25,
2000 (as theretofore amended, the (“2000 SPS Note Agreement”,
and, together with the 1996 SPS Note Agreement and the 1999 SPS Note Agreement,
the “SPS Note Agreements”), by and between
SPS and the institutional investors identified therein, pursuant to which SPS
had theretofore issued and sold, and such institutional investors had
purchased, SPS’s 8.37% Senior Notes due 2010 (the “2000 Notes”,
and, together with the 1996 Series A Notes, the 1996 Series B Notes,
the 1999 Series A Notes and the 1999 Series B Notes, the “SPS Notes”);

 

(iii) the amendment
and restatement as provided therein of the SPS Notes of each series (as so
amended and restated, the several series of SPS Notes are herein referred to,
individually, as the “Amended 1996 Series A
Notes,” the “Amended 1996 Series B
Notes,” the “Amended 1999 Series A
Notes,” the Amended 1999 Series B
Notes,” and the “Amended 2000 Notes,”
respectively, and, collectively, as the “Amended Notes”);  and (iv) the delivery to each holder of
an SPS Note of any series of an Amended Note of the corresponding series and in
a principal amount equal to the then unpaid outstanding principal balance of
such SPS Note.

 

Capitalized
terms used and not otherwise defined in this instrument (this “Amendment”) shall have the respective meanings ascribed
thereto in the Amended Note Agreement. 
References herein to a “Series” of
Amended Notes are intended as references to the Amended 1996 Series A
Notes, the Amended 1996 Series B Notes, the Amended 1999 Series A
Notes, the Amended 1999 Series B Notes or the Amended 2000 Notes.   On the date hereof the Amended Notes of each
Series are held by the institutions (each a “Noteholder”)
indicated as the holders thereof on the signature pages hereof.

 

For
the reasons stated in the Form 12b-25 Notification of Late Filing dated November 15,
2005 (the “Notification of Late Filing”) which
the Company has filed with the Securities and Exchange Commission, the Company
was unable to deliver to Noteholders the quarterly financial statements for and
in respect of its fiscal quarter ended October 2, 2005 within the period
originally specified for such delivery (before giving effect to the Prior
Amendments) in Section 10.1(a) of the Amended Note Agreement .  The Company now anticipates that it will not
be able to deliver such financial statements, or its quarterly financial
statements for its fiscal quarter ended January 1, 2006, within the
extended period specified for such delivery in said Section 10.1(a) as
the same was most recently amended pursuant to the Prior Amendments or within
the period specified for such delivery to the indenture trustee under the
Public Indenture.  Accordingly, the
Company is desirous of:

 

(i)                                     amending such Section 10.1(a) as
hereinafter provided in order to change the date by which it shall be required
pursuant thereto to deliver to each Noteholder that is an Institutional
Investor the Company’s quarterly financial statements for and in respect of
such fiscal quarters;  and

 

(ii)                                  obtaining a waiver by the Noteholders, as
and to the extent hereinafter provided, of any Default or Event of Default
arising under Section 14(f) of the Amended Note Agreement by reason
of the Company’s failure to deliver such quarterly financial statements for
such fiscal quarters until such time as an “Event of Default” (as defined in
the Public Indenture) shall occur as a result of such failure;

 

2

 

and the Company has requested that each Noteholder
agree to such amendment and such waiver.

 

The
further provisions of this Amendment set forth the Company’s understanding of
its agreement with the respective Noteholders holding each Series of Notes
concerning such requested amendment and waiver.

 

1.                                      AMENDMENT OF THE AMENDED NOTE
AGREEMENT.  Section 10.1(a) of the Amended Note
Agreement shall be amended and restated to be and to read in its entirety as
follows:

 

“(a)                        Quarterly Statements – as soon as available, but in
any event (i) not later than March 31, 2006 in the case of each of
the fiscal quarters of the Company ending October 2, 2005 and January 1,
2006, and (ii) within 55 days after the end of each of the first three
fiscal quarters of each fiscal year of the Company (other than such fiscal
quarters ending October 2, 2005 and January 1, 2006), a consolidated
balance sheet of the Company 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 Company’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 Company
as fairly presenting the financial condition, results of operations,
shareholders’ equity and cash flows of the Company and its Subsidiaries in
accordance with GAAP, subject only to normal year-end audit adjustments and the
absence of footnotes; and”.

 

2.                                      WAIVER.  Each Noteholder by its execution and delivery of this
Amendment,  hereby waives any Default or
Event of Default pursuant to Section 14(f) of the Amended Note
Agreement having occurred or to occur as a result of the Company’s breach of Section 704
of the Public Indenture by failing to deliver the financial statements for each
of the fiscal quarters of the Company 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 Company ‘s failure to comply with such Section 704 thereof.

 

3.                                      REPRESENTATIONS AND WARRANTIES. 
In connection with the amendments and waivers provided for herein, the
Company represents and warrants to and for the benefit of the Noteholders
holding each Series of Amended Notes as follows:

 

3.1                                 The representations and warranties of the
Company set forth in Section 8 of the Amended Note Agreement are true and
correct in all material respects on the date hereof except to the extent such
representations and warranties specifically relate to an earlier date and
except to the extent of changes caused by or consisting of events,
circumstances or transactions which are either not Material or have been
disclosed by the Company in one or more periodic reports required or permitted
to be made by it pursuant to Section 13 or 15(d) of the Exchange Act.

 

3.2                                 As of the date hereof, and after giving
effect to this Amendment and the amendment of the Amended Note Agreement
provided for in Section 1 hereof and the waiver provided for in Section 2
hereof, no Default or Event of Default has occurred and is continuing under and
within the meaning of the Amended Note Agreement.

 

3

 

3.3                                 Not later than the effectiveness of the
amendment of Section 10.1(a) of the Amended Note Agreement provided
for in Section 1 of this Amendment and the waiver under Section 14(f) of
the Amended Note Agreement provided for in Section 2 hereof, an amendment
and waiver shall have become effective regarding the respective corresponding
provisions of the Company’s Credit Agreement (the “Credit
Agreement Amendment”), deferring until at least March 31, 2006
the date by which the Company shall be required to furnish pursuant thereto
quarterly financial statements for and in respect of each of its fiscal
quarters ended October 2, 2005 and January 1, 2006 and waiving
defaults or events of default thereunder resulting from the Company’s breach of
Section 704 of the Public Indenture (until such time as an “Event of
Default” (as defined in the Public Indenture) shall have occurred as a result
of such breach). After giving effect to the amendment provided for in Section 1
hereof, the waiver provided for in Section 2 hereof, and such amendment to
and waiver under the Credit Agreement, neither the Company nor any of its
Subsidiaries shall be subject to any requirement to deliver or furnish, prior
to March 31, 2006, any financial statements for or in respect of either of
the Company’s fiscal quarters ended October 2, 2005 or January 1,
2006, pursuant to any loan agreement, credit agreement, indenture, mortgage,
deed of trust, or other agreement or instrument (whether or not relating to
borrowed money indebtedness) to which it is a party or by which it is bound,
except for any other such requirement, including the requirement so to do
pursuant to Section 704 of the Public Indenture, the failure to comply
with which prior to such date could not reasonably be expected to have a
Material Adverse Effect.

 

3.4                                 Neither the Company 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
Company’s failure to deliver the financial statements for either of the fiscal
quarters of the Company ended October 2, 2005 and January 1, 2006
within the time provided by Section 704 of the Public Indenture.

 

3.5                                 Neither the circumstances described in
the Notification of Late Filing nor any matters that have come to the attention
of the Company in the course of the ongoing investigation initiated by the
Company in response to such circumstances have had or could reasonably be
expected to have a Material Adverse Effect.

 

3.6                                 The Company has no reason to believe that
it will not be able, on or prior to March 31, 2006, to (i) complete
and file with the Securities and Exchange Commission the Company’s Quarterly
Reports on Form 10-Q for its fiscal quarters ended on October 2, 2005
and January 1, 2006, respectively, and (ii) deliver to the
Noteholders the quarterly financial statements required to be delivered by it
pursuant to Section 10.1(a) of the Amended Note Agreement in respect
of each such fiscal quarter.

 

4.                                      EFFECTIVENESS. 
The amendment of the Amended Note Agreement and the waiver provided for
in this Amendment shall not become effective until, and shall become effective
upon, (i) the execution and delivery of counterparts of this Amendment by
the Company and the Required Holders as provided in Section 20.1 of the
Amended Note Agreement, (ii) the execution and delivery by each Subsidiary
Guarantor of the form of Confirmation of Subsidiary Guarantors set forth below,
(iii) the payment by the Company to each Noteholder of the modification
fee payable to it pursuant to Section 5 hereof, and (iv) each
Noteholder shall have received a copy of the Credit Agreement Amendment and the
Credit

 

4

 

Agreement Amendment shall be in form and substance
reasonably satisfactory to each Noteholder.

 

5.                                      MODIFICATION FEE. 
In connection with the amendment of Section 10.1(a) of the
Amended Note Agreement provided for in Section 1 hereof and the waiver
provided for in Section 2 hereof, the Company shall pay to each Noteholder
(regardless of whether such Noteholder shall have joined in the execution and
delivery of this Amendment and consented to such amendment and waiver), not
later than the effectiveness of such amendment and waiver, a modification fee
equal to .05 % of the outstanding principal balance of the Notes held by such
Noteholder as of the date hereof.  Each
payment made by the Company to any Noteholder pursuant to the preceding
sentence shall be made to such Noteholder in the manner set forth in the Note
Agreement for the payment of interest and principal on the Notes held by such
Noteholder.

 

6.                                      CONFIRMATION OF SUBSIDIARY
GUARANTY.  Each Subsidiary Guarantor, by its
execution and delivery of the Confirmation of Subsidiary Guarantors set forth
below, hereby (i) acknowledges that it has received a copy of and is
familiar with the terms and conditions of this Amendment and (ii) agrees
that notwithstanding the terms and conditions of this Amendment, including
without limitation the amendment of Section 10.1(a) of the Amended
Note Agreement provided for in Section 1 hereof, the waiver provided for
in Section 2 hereof, and any and all circumstances or occurrences referred
to or described in the Notification of Late Filing, the terms and conditions of
the Subsidiary Guaranty and the obligations of such Subsidiary Guarantor
thereunder are hereby ratified and confirmed in all respects.

 

7.                                      MISCELLANEOUS. 
In accordance with the Amended Note Agreement, the Company agrees to pay
all reasonable expenses incurred by each Noteholder in connection with this
Amendment, including the reasonable fees and disbursements of special counsel
for the Noteholders.  This Amendment
shall be construed together with and as part of the Amended Note
Agreement.  Except as expressly amended
pursuant to Section 1 and waived pursuant to Section 2 of this
Amendment, the terms, covenants and conditions contained in the Amended Note
Agreement are hereby ratified and confirmed in all respects and, as so amended,
the Amended Note Agreement shall remain in full force and effect.  Any and all notices, requests, certificates
and other instruments executed and delivered subsequent to the date of the
effectiveness of this Amendment in respect of the Amended Note Agreement may
refer to such Amended Note Agreement without making specific reference to this
Amendment or to any prior amendment of or other modification to such Amended
Note Agreement which shall have become effective in accordance with the terms
of such Amended Note Agreement, and all such references nevertheless shall be
deemed to include, unless the context otherwise requires, this Amendment and
all such previously-effective amendments and modifications.  The descriptive headings of the sections and
other subdivisions of this Amendment shall not affect the meaning or
construction of any of the provisions hereof. 
THIS AMENDMENT SHALL BE GOVERNED BY AND CONSTRUED AND ENFORCED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO CONTRACTS MADE
AND TO BE PERFORMED IN THE STATE OF NEW YORK. 
This Amendment may be executed and accepted on separate counterparts,
each of which shall be an original, but all of which together shall constitute
one and the same instrument.  In
accordance with Section 20.2 of the Amended Note Agreement, the Company
will furnish or cause to be furnished to each Noteholder,

 

5

 

promptly after this Amendment becomes effective, true
and correct copies of the executed counterparts of this Amendment.

 

[The remainder of this page is intentionally left blank.  Signature pages follow.]

 

6

 

If you are in
agreement with the foregoing, please sign the appropriate form or forms of
acceptance on the accompanying counterparts of this Agreement and return one of
such counterparts to the Company.

 

	
   

  	
  Very truly
  yours,

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  PRECISION
  CASTPARTS CORP.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
   /s/
  Geoffrey A. Hawkes

  	
   

  
	
   

  	
   

  	
  Name: Geoffrey
  A. Hawkes

  	
   

  
	
   

  	
   

  	
  Title: Treasurer

  	
   

  
						

 

[Confirmation of Subsidiary
Guarantors and

Signatures of the Noteholders appear on the following pages]

 

7

 

CONFIRMATION OF SUBSIDIARY GUARANTORS

 

Each
of the undersigned Subsidiary Guarantors confirms and agrees as set forth in Section 5
above.

 

PCC
STRUCTURALS, INC.

PCC
AIRFOILS LLC

PCC
SPECIALTY PRODUCTS, INC.

J&L
FIBER SERVICES, INC.

ADVANCED
FORMING TECHNOLOGY, INC.

WYMAN-GORDON
COMPANY

PRECISION
FOUNDERS INC.

WYMAN
GORDON FORGINGS (CLEVELAND), INC.

WYMAN-GORDON
FORGINGS LP

WYMAN-GORDON
INVESTMENT CASTINGS, INC.

SPS
TECHNOLOGIES, LLC (f/k/a STAR ACQUISITION, LLC)

PCC
COMPOSITES, INC.

CARMET
INVESTORS, INC.

CARMET
COMPANY

WG
WASHINGTON STREET LLC

WGF I LLC

WGF II
LLC

WG
FORGINGS 3 LLC

WG
FORGINGS 2 LLC

INTERNATIONAL
EXTRUDED PRODUCTS, LLC

CANNON-MUSKEGON
CORPORATION

GREENVILLE
METALS, INC.

GREEN
STOP NUT, INC.

HOWELL
PENNCRAFT, INC.

M.
ARGUESO & CO., INC.

METALAC
FASTENERS, INC.

NSS
TECHNOLOGIES, INC.

SPS
INTERNATIONAL INVESTMENT COMPANY

SPS
TECHNOLOGIES WATERFORD COMPANY

UNBRAKO,
LLC

AVIBANK
MFG., INC.

 

8

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