EX-4 3 gex4-29482.txt EX-4 Exhibit 4 MODIFICATION TO REVOLVING PROMISSORY NOTE AND LOAN AGREEMENT Farrel Corporation 25 Main Street Ansonia, Connecticut 06401 and Farrel Limited 25 Main Street Ansonia, Connecticut 06401 (Individually and collectively, "Borrower") Wachovia Bank, National Association 300 Main Street Stamford, Connecticut 06901 (Hereinafter referred to as "Bank") THIS AGREEMENT is entered into as of August 2, 2002 by and among Bank and Borrower. RECITALS Bank is the holder of a Revolving Promissory Note executed and delivered by Borrower, dated June 18, 2001, in the original principal amount of $10,000,000.00 (the "Note"), and certain other loan documents, including without limitation, a Revolving and Term Loan Credit Agreement, dated June 18, 2001 (as heretofore amended, modified and restated, the "Loan Agreement"); Borrower and Bank have agreed to modify the terms of the Loan Documents, as defined in the Loan Agreement; Wachovia Bank, National Association, formerly known as First Union National Bank, is the owner and holder of the Note, the Loan Agreement and each of the other Loan Documents; In consideration of Bank's continued extension of credit and the agreements contained herein, the parties agree as follows: AGREEMENT ACKNOWLEDGMENT OF BALANCE. Borrower and Bank each acknowledges that the most recent Commercial Loan Invoice sent to Borrower with respect to the Obligations under the Note is correct. MODIFICATIONS. 1. The Note is hereby modified by deleting in its entirety the paragraph entitled "Repayment Terms" and substituting the following therefor: 18 of 23 REPAYMENT TERMS. This Note shall be due and payable in consecutive monthly payments of accrued interest only, commencing on July 18, 2001, and continuing on the same day of each month thereafter until fully paid. In any event, all principal and accrued interest shall be due and payable on June 15, 2004. 2. All other Loan Documents are hereby modified so that any reference to the maturity date of the Note shall be deemed to refer to June 15, 2004. 3. Any paragraph in any Loan Document entitled "Arbitration" is hereby deleted in its entirety, and any requirement in any Loan Document that any dispute or controversy arising out of or relating to any Loan Document be resolved by binding arbitration is hereby deleted. In each Loan Document, the following paragraph shall instead be included as if originally set forth therein: THE BORROWER HEREBY WAIVES TRIAL BY JURY IN ANY COURT IN ANY SUIT, ACTION OR PROCEEDING ON ANY MATTER ARISING IN CONNECTION WITH THIS AGREEMENT OR IN ANY WAY RELATED TO THE FINANCING TRANSACTIONS OF WHICH THIS AGREEMENT IS A PART AND/OR THE DEFENSE OR ENFORCEMENT OF ANY OF BANK'S RIGHTS OR REMEDIES. THE BORROWER HEREBY REPRESENTS AND WARRANTS TO BANK THAT THE WITHIN WAIVERS ARE ITS FREE ACT AND DEED MADE FOLLOWING CONSULTATION WITH INDEPENDENT COUNSEL OF ITS CHOICE. ACKNOWLEDGMENTS AND REPRESENTATIONS. Borrower acknowledges and represents that the Note and other Loan Documents, as amended hereby, are in full force and effect without any defense, counterclaim, right or claim of set-off; that, after giving effect to this Agreement, no default or event that with the passage of time or giving of notice would constitute a default under the Loan Documents has occurred, all representations and warranties contained in the Loan Documents are true and correct as of this date (except where such representations and warranties relate specifically to a prior date), all necessary action to authorize the execution and delivery of this Agreement has been taken; and this Agreement is a modification of an existing obligation and is not a novation. MISCELLANEOUS. This Agreement shall be construed in accordance with and governed by the laws of the applicable state as originally provided in the Loan Documents, without reference to that state's conflicts of law principles. This Agreement and the other Loan Documents constitute the sole agreement of the parties with respect to the subject matter thereof and supersede all oral negotiations and prior writings with respect to the subject matter thereof. No amendment of this Agreement, and no waiver of any one or more of the provisions hereof shall be effective unless set forth in writing and signed by the parties hereto. The illegality, unenforceability or inconsistency of any provision of this Agreement shall not in any way affect or impair the legality, enforceability or consistency of the remaining provisions of this Agreement or the other Loan Documents. This Agreement and the other Loan Documents are intended to be consistent. However, in the event of any inconsistencies among this Agreement and any of the Loan Documents, the terms of this Agreement, and then the Note, shall control. This Agreement may be executed in any number of counterparts and by the different parties on separate counterparts. Each such counterpart shall be deemed an original, but all such counterparts shall together constitute one and the same agreement. Terms used in this Agreement which are capitalized and not otherwise defined herein shall have the meanings ascribed to such terms in the Note and the Loan Agreement. CONNECTICUT PREJUDGMENT REMEDY WAIVER. THE BORROWER ACKNOWLEDGES THAT THE TRANSACTIONS REPRESENTED BY THIS AGREEMENT ARE COMMERCIAL TRANSACTIONS AND HEREBY VOLUNTARILY AND KNOWINGLY WAIVES ANY RIGHTS TO NOTICE OF AND HEARING ON PREJUDGMENT REMEDIES UNDER CHAPTER 903A OF THE CONNECTICUT GENERAL STATUTES OR OTHER STATUTES AFFECTING PREJUDGMENT REMEDIES, AND AUTHORIZES THE BANK'S ATTORNEY TO ISSUE A WRIT FOR A PREJUDGMENT REMEDY WITHOUT COURT ORDER, PROVIDED THE COMPLAINT SHALL SET FORTH A COPY OF THIS WAIVER. 19 of 23 WAIVER OF JURY TRIAL. EACH OF THE BORROWER AND THE BANK HEREBY WAIVES TRIAL BY JURY IN ANY COURT IN ANY SUIT, ACTION OR PROCEEDING ON ANY MATTER ARISING IN CONNECTION WITH THIS AGREEMENT OR IN ANY WAY RELATED TO THE FINANCING TRANSACTIONS OF WHICH THIS AGREEMENT IS A PART AND/OR THE DEFENSE OR ENFORCEMENT OF ANY OF BANK'S RIGHTS OR REMEDIES. THE BORROWER HEREBY REPRESENTS AND WARRANTS TO BANK THAT THE WITHIN WAIVERS ARE ITS FREE ACT AND DEED MADE FOLLOWING CONSULTATION WITH INDEPENDENT COUNSEL OF ITS CHOICE. IN WITNESS WHEREOF, the undersigned have signed and sealed this Agreement the day and year first above written. PLACE OF EXECUTION AND DELIVERY. Borrower hereby certifies that this Agreement and the Loan Documents were executed in the State of Connecticut and delivered to Bank in the State of Connecticut. WITNESSES: /s/ James L Burns Farrel Corporation ----------------- /s/ Marisela Esposito By: /s/ Rolf K Liebergesell --------------------- ----------------------- Rolf K. Liebergesell, Director /s/ James L Burns Farrel Limited ----------------- /s/ Marisela Esposito By: /s/ Rolf K Liebergesell --------------------- ----------------------- Rolf K. Liebergesell, Director /s/ Richard Petrone Wachovia Bank, National Association ------------------- /s/ Annette Herber By: /s/ Philip Galioto ------------------- ------------------ Philip Galioto Vice President 20 of 23