SECOND CONSENT AND WAIVER UNDER THE SENIOR UNSECURED TERM LOAN AGREEMENT Dated as of May 27, 2005

Exhibit 4.2

SECOND CONSENT AND WAIVER UNDER THE SENIOR UNSECURED

TERM LOAN AGREEMENT

Dated as of May 27, 2005

SECOND CONSENT AND WAIVER UNDER THE SENIOR UNSECURED TERM LOAN AGREEMENT, dated as of May 27, 2005 (this “Consent”), among DRESSER, INC., a Delaware corporation (the “Borrower”), the Guarantors (as defined below), the Lenders listed on the signature pages hereto and XXXXXX XXXXXXX SENIOR FUNDING, INC. (“MSSF”), as Administrative Agent.

WITNESSETH:

WHEREAS, the Borrower, the Guarantors, the Lenders party thereto and the Agents have entered into a Senior Unsecured Term Loan Agreement dated as of March 1, 2004, as modified by the Consent and Waiver dated as of March 18, 2005 (the “Term Loan Agreement”; capitalized terms used herein but not defined shall be used herein as defined in the Term Loan Agreement).

WHEREAS, the Borrower desires to modify the Term Loan Agreement in certain respects and to waive certain Defaults and Events of Default under the Credit Agreement, in each case as provided herein;

WHEREAS, the Required Lenders have agreed, subject to the terms and conditions hereinafter set forth, to modify the Term Loan Agreement in response to the Borrower’s request as set forth below;

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

SECTION 1. Consent. Notwithstanding anything to the contrary set forth in the Term Loan Agreement, the Required Lenders hereby consent to (a) the extension of the delivery date specified for the audited financial statements for the Fiscal Year ended December 31, 2004 and the other material with respect to such Fiscal Year required by Section 5.01(b) of the Term Loan Agreement to no later than July 15, 2005 (the “10K Extended Delivery Date”), it being understood and agreed that if the Borrower fails to deliver such audited financial statements and other materials on or before the 10K Extended Delivery Date, and a notice of Default with respect to such failure is delivered to the Borrower by the Administrative Agent or the Lenders holding of at least 25% of the outstanding principal amount of the Senior Unsecured Obligations pursuant to Section 6.01(c) of the Term Loan Agreement, such failure shall constitute an Event of Default for all purposes under the Loan Documents and (b) the extension of the delivery date specified for the material required by Section 5.01(b) with respect to the fiscal quarter ended March 31, 2005 to no later than July 15, 2005 (the “10Q Extended Delivery Date”), it being understood and agreed that if the Borrower fails to deliver the materials required by Section 5.01(b) with respect to the fiscal quarter ended March 31, 2005 by the 10Q Extended Delivery

Date, and a notice of Default with respect to such failure is delivered to the Borrower by the Administrative Agent or the Lenders holding of at least 25% of the outstanding principal amount of the Senior Unsecured Obligations pursuant to Section 6.01(c) of the Term Loan Agreement, such failure shall constitute an Event of Default for all purposes under the Loan Documents. Notwithstanding the foregoing, it is further understood and agreed that the Borrower shall deliver to the Lenders all financial statements for the fiscal quarter ended March 31, 2005 that are provided to the “Lenders” under the Existing Credit Agreement at the same time as such financial statements are delivered under the Existing Credit Agreement, and if the Borrower fails to do so, and a notice of Default with respect to such failure is delivered to the Borrower by the Administrative Agent or the Lenders holding of at least 25% of the outstanding principal amount of the Senior Unsecured Obligations pursuant to Section 6.01(c) of the Term Loan Agreement, such failure shall constitute an Event of Default for all purposes under the Loan Documents.

SECTION 2. Waiver. The Lenders holding not less than a majority in aggregate principal amount of the then outstanding Senior Unsecured Obligations hereby waive any Default or Event of Default in respect of the provisions of Sections 3.01(a)(iv), 3.01(c), 4.01(f), 4.01(g), 4.01(h), 4.01(j), 5.01(b) and 5.01(c) of the Term Loan Agreement and any related or substantially comparable provision of any Loan Document, in each case consisting of, resulting from or relating in any respect to (i) the re-audit, revision or restatement of any financial statement delivered prior to the date of this Consent and Waiver by the Borrower or any of its Subsidiaries (including, without limitation, any misstatement therein or in any certificate, representation or warranty relating thereto, or any error, defect or deficiency in accounting procedures or in the application of accounting principles reflected thereby or relating thereto), (ii) any failure to deliver any such financial statement when or as required, except as required by Section 1 above, (iii) any failure to comply with any obligation that became required to be performed or observed under any of such provisions by reason of the occurrence of any such Default or Event of Default or (iv) any misstatement as to the absence of any such Default or Event of Default.

SECTION 3. Conditions to Effectiveness. This Consent shall become effective, as of the first date set forth above, on the date (the “Effective Date”) when each of the conditions set forth in this Section 3 to this Consent shall have been fulfilled to the satisfaction of the Administrative Agent.

(i) Execution of Counterparts. The Administrative Agent shall have received counterparts of this Consent, duly executed and delivered on behalf of each of (a) the Borrower and each Guarantor, (b) the Administrative Agent and (c) the Required Lenders, or as to any of the foregoing parties, advice reasonably satisfactory to the Administrative Agent that each of the foregoing parties has executed a counterpart of this Consent.

(ii) Payment of Fees and Expenses. The Borrower shall have paid, on or before May 31, 2005, (a) to the Administrative Agent, for the benefit of each Lender executing this Consent on or before May 27, 2005, a fee equal to 0.05% of the aggregate Commitments and Advances of each such Lender and (b) all expenses (including the fees and expenses of Shearman & Sterling LLP) incurred in connection with the preparation,

2

negotiation and execution of this Consent and other matters relating to the Term Loan Agreement from and after the last invoice to the extent invoiced.

SECTION 4. Representations and Warranties. Each Borrower hereby represents and warrants that as of the date hereof no Default has occurred and is continuing or would result from the effectiveness of this Consent.

SECTION 5. Reference to and Effect on the Transaction Documents. (a) On and after the effectiveness of this Consent, each reference in the Term Loan Agreement to “hereunder”, “hereof” or words of like import referring to the Term Loan Agreement, and each reference in the other transaction documents to the “Credit Agreement”, “thereunder”, “thereof” or words of like import referring to the Term Loan Agreement, shall mean and be a reference to the Term Loan Agreement as modified by this Consent.

(b) The Term Loan Agreement, the Notes and each of the other Loan Documents, as specifically amended by this Consent, are and shall continue to be in full force and effect and are hereby in all respects ratified and confirmed.

(c) The execution, delivery and effectiveness of this Consent shall not, except as expressly provided herein, operate as a waiver of any right, power or remedy of any Lender or any Agent under any of the Loan Documents, nor constitute a waiver of any provision of any of the Loan Documents.

SECTION 6. Execution in Counterparts. This Consent may be executed in any number of counterparts and by different parties hereto in separate counterparts, each of which when so executed shall be deemed to be an original and all of which taken together shall constitute but one and the same agreement. Delivery of an executed counterpart of a signature page to this Consent by telecopier shall be effective as delivery of a manually executed counterpart of this Consent.

SECTION 7. Governing Law. This Consent shall be governed by, and construed in accordance with, the laws of the State of New York, and shall be subject to the jurisdictional and service provisions of the Term Loan Agreement, as if this were a part of the Term Loan Agreement.

SECTION 8. Entire Agreement; Modification. This Consent constitutes the entire agreement of the parties hereto with respect to the subject matter hereof, there being no other agreements or understandings, oral, written or otherwise, respecting such subject matter, any such agreement or understanding being superseded hereby, shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns, and may not be amended, extended or otherwise modified, except in a writing executed in whole or in counterparts by each party hereto.

[Signatures follow.]

3

IN WITNESS WHEREOF, the parties hereto have caused this Consent to be executed and delivered by their respective authorized officers as of the day and year first above written.

DRESSER, INC., as Borrower
By:		/s/    XXXXX X. XXXXXXX
		Name:		Xxxxx X. Xxxxxxx
		Title:		Executive Vice President and Chief Financial Officer

THE GUARANTORS
DRESSER INTERNATIONAL, INC.
By:		/s/    XXXXX X. XXXXXXX
		Name:		Xxxxx X. Xxxxxxx
		Title:		Executive Vice President
DRESSER RE, INC.
By:		/s/    XXXXX X. XXXXXXX
		Name:		Xxxxx X. Xxxxxxx
		Title:		Executive Vice President
DRESSER RUSSIA, INC.
By:		/s/    XXXXX X. XXXXXXX
		Name:		Xxxxx X. Xxxxxxx
		Title:		Executive Vice President
LVF HOLDING CORPORATION
By:		/s/    XXXXX X. XXXXXXX
		Name:		Xxxxx X. Xxxxxxx
		Title:		Executive Vice President
DRESSER ENTECH, INC.
By:		/s/    XXXXX X. XXXXXXX
		Name:		Xxxxx X. Xxxxxxx
		Title:		Executive Vice President
RING-O VALVE, INCORPORATED
By:		/s/    XXXXX X. XXXXXXX
		Name:		Xxxxx X. Xxxxxxx
		Title:		Executive Vice President

DRESSER CHINA, INC.
By:		/s/    XXXXX X. XXXXXXX
		Name:		Xxxxx X. Xxxxxxx
		Title:		Executive Vice President

XXXXXX XXXXXXX SENIOR FUNDING, INC., as Administrative Agent
By:		/s/    XXXXXX XXXXXX
		Name:		Xxxxxx Xxxxxx
		Title:		Managing Director

XXXXXX XXXXXXX & CO. INCORPORATED, as Collateral Agent
By:		/s/    XXXXXX XXXXXX
		Name:		Xxxxxx Xxxxxx
		Title:		Managing Director

LENDERS
LANDMARK CDO LIMITED
By:		ALADDIN CAPITAL MANAGEMENT LLC, AS MANAGER
		[Print Name of Financial Institution]
By:				/s/    XXXXXX XXXXXXX
		Name:		XXXXXX XXXXXXX
		Title:		DIRECTOR

LENDERS
LANDMARK II CDO LIMITED
By:		ALADDIN CAPITAL MANAGEMENT LLC as MANAGER
		[Print Name of Financial Institution]
By:				/s/    XXXXXX XXXXXXX
		Name:		XXXXXX XXXXXXX
		Title:		DIRECTOR

LENDERS
LANDMARK IV CDO LIMITED
By:		ALADDIN CAPITAL MANAGEMENT LLC as MANAGER
		[Print Name of Financial Institution]
By:				/s/    XXXXXX XXXXXXX
		Name:		XXXXXX XXXXXXX
		Title:		DIRECTOR

LENDERS
Centurion CDO II, Ltd.
By:		American Express Asset Management Group, Inc. as Collateral Manager
		[Print Name of Financial Institution]
By:				/s/    XXXXXXX X. XXXX
		Name:		Xxxxxxx X. Xxxx
		Title:		Director-Operations

LENDERS
Centurion CDO VI, Ltd.
By:		American Express Asset Management Group, Inc. as Collateral Manager
		[Print Name of Financial Institution]
By:				/s/    XXXXXXX X. XXXX
		Name:		Xxxxxxx X. Xxxx
		Title:		Director-Operations

LENDERS
Sequils-Centurion V, Ltd.
By:		American Express Asset Management Group, Inc. as Collateral Manager
		[Print Name of Financial Institution]
By:				/s/    XXXXXXX X. XXXX
		Name:		Xxxxxxx X. Xxxx
		Title:		Director-Operations

LENDERS
AMMC CDO IV, LIMITED
By:		American Money Management Corp., as Collateral Manager
By:				/s/    XXXXXXX X. ENG
		Name:		Xxxxxxx X. Eng
		Title:		Senior Vice President

LENDERS
AMMC CDO II, LIMITED
By:		American Money Management Corp., as Collateral Manager
By:				/s/    XXXXXXX X. ENG
		Name:		Xxxxxxx X. Eng
		Title:		Senior Vice President

LENDERS
ARES III CLO Ltd.
By:		ARES CLO Management LLC, Investment Manager
By:				/s/    XXXX X. XXXXXXX
		Name:		XXXX X. XXXXXXX
		Title:		VICE PRESIDENT

LENDERS
Ares IV CLO Ltd.
By:		Ares CLO Management IV, L.P., Investment Manager
By:		Ares CLO XX XX, LLC, Its Managing Member
By:				/s/    XXXX X. XXXXXXX
		Name:		XXXX X. XXXXXXX
		Title:		VICE PRESIDENT

LENDERS
Ares VI CLO Ltd.
By:		Ares CLO Management VI, L.P., Investment Manager
By:		Ares CLO GP VI, LLC, Its Managing Member
By:				/s/    XXXX X. XXXXXXX
		Name:		XXXX X. XXXXXXX
		Title:		VICE PRESIDENT

LENDERS
Ares VIII CLO Ltd.
By:		Ares CLO Management VIII, L.P., Investment Manager
By:		Ares CLO GP VIII, LLC, Its General Partner
By:				/s/    XXXX X. XXXXXXX
		Name:		XXXX X. XXXXXXX
		Title:		VICE PRESIDENT

LENDERS
THE TRAVELERS INSURANCE COMPANY
[Print Name of Financial Institution]
By:				/s/    XXXXX XXXXXXXX
		Name:		XXXXX XXXXXXXX
		Title:		INVESTMENT OFFICER

LENDERS
TRS CALLISTO LLC
By:				/s/    XXXXX X. XXXXXX
		Name:		Xxxxx X. Xxxxxx
		Title:		Vice President

LENDERS
Flagship CLO 2001-1
By:		Flagship Capital Management, Inc.
By:				/s/    XXXXXXX XXXXXXXX
		Name:		Xxxxxxx Xxxxxxxx
		Title:		Director

LENDERS
Flagship CLO II
By:		Flagship Capital Management, Inc.
By:				/s/    XXXXXXX XXXXXXXX
		Name:		Xxxxxxx Xxxxxxxx
		Title:		Director

LENDERS
Franklin CLO I, Limited
[Print Name of Financial Institution]
By:				/s/    XXXXX XXXXXX
		Name:		XXXXX XXXXXX
		Title:		VICE PRESIDENT

LENDERS
Franklin CLO II, Limited
[Print Name of Financial Institution]
By:				/s/    XXXXX XXXXXX
		Name:		XXXXX XXXXXX
		Title:		VICE PRESIDENT

LENDERS
Franklin CLO III, Limited
[Print Name of Financial Institution]
By:				/s/    XXXXX XXXXXX
		Name:		XXXXX XXXXXX
		Title:		VICE PRESIDENT

LENDERS
Franklin CLO IV, Limited
[Print Name of Financial Institution]
By:				/s/    XXXXX XXXXXX
		Name:		XXXXX XXXXXX
		Title:		VICE PRESIDENT

LENDERS
FRANKLIN FLOATING RATE DAILY ACCESS FUND
[Print Name of Financial Institution]
By:				/s/    XXXXXXX XXX
		Name:		Xxxxxxx Xxx
		Title:		Vice President

LENDERS
Franklin Floating Rate Master Series
[Print Name of Financial Institution]
By:				/s/    XXXXXXX XXX
		Name:		Xxxxxxx Xxx
		Title:		Vice President

LENDERS
Franklin Floating Rate Trust
[Print Name of Financial Institution]
By:				/s/    XXXXXXX XXX
		Name:		Xxxxxxx Xxx
		Title:		Vice President

LENDERS
Floating Rate Income Strategies Fund, Inc.
By:		/s/    OMAR JAMA
		Omar Jama
		Authorized Signatory
SENIOR HIGH INCOME PORTFOLIO, INC.
By:		/s/    OMAR JAMA
		Omar Jama
		Authorized Signatory
DEBT STRATEGIES FUND, INC.
By:		/s/    OMAR JAMA
		Omar Jama
		Authorized Signatory
XXXXXXX XXXXX GLOBAL INVESTMENT SERIES: INCOME STRATEGIES PORTFOLIO
By:		Xxxxxxx Xxxxx Investment Managers, L.P. as Investment Advisor
By:		/s/    OMAR JAMA
		Omar Jama
		Authorized Signatory

LENDERS
Venture III CDO Limited
By		its investment advisor, MJX Asset Management LLC
By:				/s/    XXXXXXX XXXXXXX
		Name:		Xxxxxxx Xxxxxxx
		Title:		Director

LENDERS
NYLIM Flatiron CLO 2003-1 Ltd.
By:		New York Life Investment Management LLC, as Collateral Manager and Attorney-in-Fact
By:				/s/    XXXXXX X. XXXX
		Name:		Xxxxxx X. Xxxx
		Title:		Managing Director

NYLIM Flatiron CLO 2004-1 Ltd.
By:		New York Life Investment Management LLC, as Collateral Manager and Attorney-in-Fact
By:				/s/    XXXXXX X. XXXX
		Name:		Xxxxxx X. Xxxx
		Title:		Managing Director

NYLIM High Yield CDO 2001 Ltd.
By:		New York Life Investment Management LLC,
By:				/s/    XXXXXX X. XXXX
		Name:		Xxxxxx X. Xxxx
		Title:		Managing Director

New York Life Insurance and Annuity Corporation
By:		New York Life Investment Management LLC, its Investment Manager
By:				/s/    XXXXXX X. XXXX
		Name:		Xxxxxx X. Xxxx
		Title:		Managing Director

New York Life Insurance Company
By:				/s/    XXXXXX X. XXXX
		Name:		Xxxxxx X. Xxxx
		Title:		Vice President

LENDERS
Bedford CDO, Limited
By:		Pacific Investment Management Company LLC, as its Investment Advisor
By:		/s/    XXXXX X. XXXXXXXXXX
		Xxxxx X. Xxxxxxxxxx Managing Director

LENDERS
EQ Advisors Trust EQ/High Yield Portfolio
By:		Pacific Investment Management Company LLC, as its Investment Advisor
By:		/s/    XXXXX X. XXXXXXXXXX
		Xxxxx X. Xxxxxxxxxx
		Managing Director

LENDERS
PIMCO Floating Rate Income Fund
By:		Pacific Investment Management Company LLC, as its Investment Advisor, acting through Investors Fiduciary Trust Company in the Nominee Name of IFTCO
By:				/s/    XXXXX X. XXXXXXXXXX
				Xxxxx X. Xxxxxxxxxx
				Managing Director

LENDERS
SEQUILS-MAGNUM, LTD.
By:		Pacific Investment Management Company LLC, as its Investment Advisor
By:				/s/    XXXXX X. XXXXXXXXXX
				Xxxxx X. Xxxxxxxxxx
				Managing Director

LENDERS

OAK HILL SECURITIES FUND II, L.P.

By:

Oak Hill Securities GenPar II, L.P. its General Partner

By:

Oak Hill Securities MGP II, Inc., its General Partner

By:

/s/    XXXXX X. XXXXX

Name:

Xxxxx X. Xxxxx

Title:

Vice President

OAK HILL SECURITIES FUND, L.P.

By:

Oak Hill Securities GenPar, L.P. its General Partner

By:

Oak Hill Securities MGP, Inc., its General Partner

By:

/s/    XXXXX X. XXXXX

Name:

Xxxxx X. Xxxxx

Title:

Vice President

OAK HILL CREDIT PARTNERS I, LIMITED

By:

Oak Hill CLO Management I, LLC As Investment Manager

By:

/s/    XXXXX X. XXXXX

Name:

Xxxxx X. Xxxxx

Title:

Authorized Person

OAK HILL CREDIT PARTNERS III, LIMITED

By:

Oak Hill CLO Management III, LLC As Investment Manager

By:

/s/    XXXXX X. XXXXX

Name:

Xxxxx X. Xxxxx

Title:

Authorized Person

LENDERS
BOSTON HARBOR CLO 2004-1, LTD.
By:				/s/    XXXX XXXXX
		Name:		Xxxx Xxxxx
		Title:		V. P.

LENDERS
XXXXXX DIVERSIFIED INCOME TRUST
By:				/s/    XXXX XXXXX
		Name:		Xxxx Xxxxx
		Title:		V.P.

LENDERS
XXXXXX FLOATING RATE INCOME FUND
By:				/s/    XXXX XXXXX
		Name:		Xxxx Xxxxx
		Title:		V.P.

LENDERS
XXXXXX HIGH YIELD ADVANTAGE FUND
By:				/s/    XXXX XXXXX
		Name:		Xxxx Xxxxx
		Title:		V.P.

LENDERS
XXXXXX HIGH YIELD TRUST
By:				/s/    XXXX XXXXX
		Name:		Xxxx Xxxxx
		Title:		V.P.

LENDERS
XXXXXX MASTER INCOME TRUST
By:				/s/    XXXX XXXXX
		Name:		Xxxx Xxxxx
		Title:		V.P.

LENDERS
XXXXXX MASTER INTERMEDIATE INCOME TRUST
By:				/s/    XXXX XXXXX
		Name:		Xxxx Xxxxx
		Title:		V.P.

LENDERS
XXXXXX PREMIER INCOME TRUST
By:				/s/    XXXX XXXXX
		Name:		Xxxx Xxxxx
		Title:		V.P.

LENDERS
XXXXXX VARIABLE TRUST – PVT DIVERSIFIED INCOME FUND
By:				/s/    XXXX XXXXX
		Name:		Xxxx Xxxxx
		Title:		V.P.

LENDERS
XXXXXX VARIABLE TRUST – PVT HIGH YIELD FUND
By:				/s/    XXXX XXXXX
		Name:		Xxxx Xxxxx
		Title:		V.P.

LENDERS
00xx Xxxxxx Funding II Inc.
[Print Name of Financial Institution]
By:				/s/    XXXXXXXX WETSS
		Name:		Xxxxxxxx Wetss
		Title:		Authorized Signatory

LENDERS
Sankaty High Yield Partners II, L.P.
[Print Name of Financial Institution]
By:				/s/    XXXXX X. XXXXX
		Name:		XXXXX X. XXXXX
		Title:		MANAGING DIRECTOR PORTFOLIO MANAGER

LENDERS
Sankaty Advisors, LLC as Collateral Manager for XXXXX POINT CLO, LTD., as Term Lender
[Print Name of Financial Institution]
By:				/s/    XXXXX X. XXXXX
		Name:		XXXXX X. XXXXX
		Title:		MANAGING DIRECTOR PORTFOLIO MANAGER

LENDERS
Sankaty Advisors, LLC as Collateral Manager for Prospect Funding I, LLC as Term Lender
[Print Name of Financial Institution]
By:				/s/    XXXXX X. XXXXX
		Name:		XXXXX X. XXXXX
		Title:		MANAGING DIRECTOR PORTFOLIO MANAGER

LENDERS
HARBOUR TOWN FUNDING LLC
By:				/s/    XXXXXXXX X. XXXXXXX
		Name:		Xxxxxxxx X. Xxxxxxx
		Title:		Assistant Vice President

LENDERS
JUPITER LOAN FUNDING LLC
By:				/s/    XXXXXXXX X. XXXXXXX
		Name:		Xxxxxxxx X. Xxxxxxx
		Title:		Assistant Vice President

LENDERS
WINGED FOOT FUNDING TRUST
By:				/s/    XXXXXXXX X. XXXXXXX
		Name:		Xxxxxxxx X. Xxxxxxx
		Title:		Authorized Agent

LENDERS
CREDIT SUISSE, CAYMAN ISLANDS BRANCH (fka CREDIT SUISSE FIRST BOSTON, acting through its Cayman Islands Branch)
By:				/s/    S. XXXXXXX XXX
		Name:		S. XXXXXXX XXX
		Title:		DIRECTOR
By:				/s/    XXXXX XXXX
		Name:		XXXXX XXXX
		Title:		VICE PRESIDENT

LENDERS
AIMCO CDO Series 2000-A
[Print Name of Financial Institution]
By:				/s/    XXXXXX X. XXXXXX
		Name:		XXXXXX X. XXXXXX
		Title:		Authorized Signatory
By:				/s/    XXXXX X. XXXXXXX
		Name:		XXXXX X. XXXXXXX
		Title:		Authorized Signatory