Document:

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                                                                     EXHIBIT 4.1

                             GENESIS WORLDWIDE INC.
                    12% JUNIOR SUBORDINATED NOTE, AS RESTATED

$11,947,541.00                                                     July 1, 2000

         Genesis Worldwide Inc. (the "Company"), an Ohio corporation, promises
to pay to Three Cities Research, Inc., as Stockholders Representative under a
Stock Purchase Agreement (the "Agreement") dated May 13, 1999 between the
Company and the stockholders of Precision Industrial Corporation (the "Holder"),
at the times and in the respective amounts described below, the total principal
sum of $11,947,541.00. The Company also promises to pay interest on the unpaid
principal amount of this Note at the rate which is 9% per annum until December
31, 2001, which increases to 12.5% on January 1, 2002 and continues at that rate
until March 31, 2002 and increases by 50 basis points on April 1, 2002 and each
July 1, October 1, January 1, and April 1 after that until April 1, 2004, on and
after which the rate of interest payable under this Note will be 17% per annum.
Interest will be based on a year of 365/366 days. The interest payment due and
payable under this Note on each of September 30, 2000, December 31, 2000 and
March 31, 2001 shall not be paid in cash, but in lieu thereof, an amount equal
to such cash payment shall be paid by increasing the principal amount of this
Note by such amount effective on the respective dates that such interest
payments are due and payable; and the principal amount of this Note as so
increased shall bear interest and be payable at the Maturity Date, all as
provided in this Note. To the extent any interest payment (other than a payment
under Paragraph 4 below) is at a rate in excess of 14% per annum, the amount
above 14% per annum will be paid with a note containing the same terms as this
Note, dated the date of the interest payment, in a principal amount equal to the
amount by which the interest payment exceeds what it would have been at 14% per
annum.

         1.   The entire unpaid principal balance of the sum evidenced by this
Note will be due and payable on December 31, 2007 (the "Maturity Date"). If,
however, at any time or times prior to the Maturity Date, the Company completes
a public offering for cash of equity securities or of debt securities which are
subordinated to some or all of the Company's Senior Indebtedness described in
Paragraph 8, other than upon exercise of options granted to directors of the
Company or officers of the Company or its subsidiaries under a stock option plan
for directors or employees, simultaneously with the sale of the securities which
are the subject of that public offering, the Company will make a prepayment of
the principal sum evidenced by this note which is equal to at least 80% of the
proceeds of the public offering, net of underwriting discounts and commissions,
or which is equal to the entire unpaid balance of that principal sum if that is
less, and the Company will pay all accrued but unpaid interest on the principal
sum which is being prepaid.

         2.   Interest will be payable on March 31, June 30, September 30 and
December 31 of each year (each an "Interest Payment Date"), with the first
interest payment to be made on the first of those dates after interest begins to
accrue.

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         3.   Except as otherwise provided above with respect to the interest
payments due and payable on September 30, 2000, December 31, 2000, and March 31,
2001, each payment of principal or interest will be made to the Holder by
certified or bank cashier's check or wire transfer, at such address or to such
account as the Holder specifies to the Company in writing at least three
business days before the payment is to be made.

         4.   Any payment of principal or interest which is not made when it is
due will bear interest from the date it is due until it is paid at the rate
which is 200 basis points higher than the interest rate in effect on the day the
payment is due, or such lower rate as is the maximum rate permitted by law.

         5.   The Company may at any time prepay all or any portion of the
outstanding balance of the principal sum evidenced by this Note (provided that
each prepayment must be at least $100,000, or such lesser amount as is the
entire outstanding balance of principal immediately before the prepayment). Each
prepayment will be applied against the payments of principal required by this
Note in the reverse of the order in which they are to be made. Each prepayment
of principal will be accompanied by all accrued but unpaid interest on the
principal sum being prepaid.

         6.   Each of the following events will constitute an Event of Default:

                    (a) The Company fails to make any payment of principal on or
              before the day on which it is due; or

                    (b) The Company fails to make any payment of interest within
              ten days after the day on which is it due; or

                    (c) The Company defaults in any of its obligations under
              this Note other than obligations described in subparagraphs (a)
              and (b) and fails to cure that default within 30 days after a
              written demand from the Holder that the Company do so; or

                    (d) The Company or a significant subsidiary (as that term is
              defined in Securities and Exchange Commission Regulation S-X)
              commences a proceeding seeking relief as a debtor under the
              Bankruptcy Code or any state or foreign insolvency law; or

                    (e) An order is entered in a proceeding under the Bankruptcy
              Code or any state or foreign insolvency law declaring the Company
              or a significant subsidiary to be insolvent or appointing a
              receiver or similar official for substantially all the Company's
              or a significant subsidiary's properties, and that order is not
              dismissed within 90 days; or

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                    (f) Because of an event of default with regard to Senior
               Indebtedness, a holder of Senior Indebtedness accelerates the
               time when the principal of the Senior Indebtedness is due and
               payable; or

                    (g) Because of events of default with regard to indebtedness
               which is not Senior Indebtedness, holders of indebtedness
               aggregating $500,000 which is not Senior Indebtedness accelerate
               the time when that indebtedness is due and payable.

         7. Upon the occurrence of an Event of Default, the Holder may, by a
notice to the Company given while the Event of Default is continuing, declare
the entire unpaid balance of the principal sum evidenced by this Note and the
accrued but unpaid interest to be due and payable, in which event that principal
balance and accrued but unpaid interest will be immediately due and payable,
except that if the Event of Default is of the type described in subparagraph (d)
or (e), the entire unpaid balance of the principal sum evidenced by this Note
and all accrued but unpaid interest will be immediately due and payable when the
Event of Default occurs, without requiring any notice or other action by the
Holder.

         8.   (a)  The Company's obligations to make payments of principal and
interest under this Note are subordinate and subject in right of payment to the
prior payment in full of all Senior Indebtedness. "Senior Indebtedness" means
all principal, premium, interest, and other sums due with regard to all
indebtedness for money borrowed (including the obligation to reimburse for
amounts drawn against letters of credit) from banks, insurance companies or
other financial institutions which the Company states, in the instrument
governing the indebtedness or a document delivered to the holder of the
indebtedness, to be Senior Indebtedness with regard to this Note, except that no
indebtedness (and no obligations with regard to the indebtedness) will be Senior
Indebtedness to the extent that incurrence of the indebtedness would cause the
entire Senior Indebtedness at the time the indebtedness is incurred to exceed
$100,000,000, plus, as to Senior Indebtedness which when it was incurred did not
cause the entire Senior Indebtedness to exceed that amount, additional advances
totaling not more than 10% of the maximum committed amount of that Senior
Indebtedness made by the lender to protect the Senior Indebtedness already held
by the lender. In furtherance and not in limitation of the foregoing, but
subject to the foregoing limitation on amount, "Senior Indebtedness" includes
all principal, interest and other obligations of the Company under a Credit
Agreement dated as of June 30, 1999 among the Company, the lenders party
thereto, and ING (U.S.) Capital LLC as administrative agent, as amended,
supplemented and otherwise modified from time to time.

              (b)  No payment of principal or interest on this Note will be
made (i) unless all amounts then due for principal, premium, if any, and
interest on Senior Indebtedness have been paid in cash or provided for, or (ii)
during the period (a "Blockage Period") between the time the Company is notified
by a holder of Senior Indebtedness that an event of default with respect to that
Senior Indebtedness exists which permits the holder of that Senior Indebtedness
to accelerate its maturity (a "Blockage Event") and the earlier of (x) the time
that event of default is cured or waived

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or ceases to exist, and (y) 180 days after the holder of that Senior
Indebtedness became entitled to accelerate its maturity, unless the holder of
that Senior Indebtedness has accelerated its maturity.

              (c)  During a Blockage Period, the Holder of this Note shall not
ask for, sue for, take, demand or set off or in any other manner, direct or
indirect, attempt to enforce any right or collect any payment or distribution on
account of this Note, nor present this Note for payment.

              (d)  Upon any distribution of assets of the Company as a result
of any dissolution, winding up, liquidation or reorganization (whether in a
bankruptcy or insolvency proceeding or otherwise) (an "Insolvency Event"), (i)
all Senior Indebtedness must be paid in full in cash, or provision made for its
payment, before any payment is made on account of principal or interest on this
Note, (ii) any payment or distribution of assets of the Company to which the
Holder would be entitled except for this Paragraph must be paid or delivered by
the Company or by any trustee in bankruptcy, receiver, assignee for the benefit
of creditors or other liquidating agent, directly to the holders of the Senior
Indebtedness, pro rata to the amounts of Senior Indebtedness held by each of
them (or in accordance with any subordination agreements or other agreements
among them), to the extent necessary to pay all Senior Indebtedness in full
after giving effect to any concurrent payments or distributions to the holders
of the Senior Indebtedness or provision for payment or distribution to them, and
(iii) if, notwithstanding the foregoing, the Holder receives any payment or
distribution of property of the Company before all Senior Indebtedness is paid
in full, or provision made for its payment, the Holder will receive the cash or
property paid or distributed to the Holder in trust for the holders of the
Senior Indebtedness, and, upon a request made to the Holder by a holder of
Senior Indebtedness within one year after the cash or property is paid or
distributed to the Holder, the Holder will pay or deliver that cash or property
to the holders of the Senior Indebtedness, for application to the payment of any
Senior Indebtedness remaining unpaid after giving effect to any concurrent
payment or distribution to the holders of the Senior Indebtedness or provision
for payment or distribution to them. If no claim is made by holders of Senior
Indebtedness to cash or property paid or distributed to the Holder within one
year after the payment or distribution to the Holder, after the end of the one
year period, the Holder will hold the cash or property free of any trust.

              (e)  Following the occurrence and during the continuation of any
Insolvency Event:

                         i. the Holder of this Note shall take such action, duly
                    and promptly, as any holder of Senior Indebtedness may
                    request from time to time (A) to collect this Note for the
                    account of the holders of Senior indebtedness and (B) to
                    file appropriate proofs of claim in respect of this Note;

                         ii. the Holder of this Note irrevocably authorizes and
                    empowers each holder of Senior Indebtedness (A) to demand,
                    sue for, collect and

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                    receive every payment or distribution on account of this
                    Note payable or deliverable in connection with such event or
                    proceeding and give acquittance therefor, and (B) to file
                    claims and proofs of claim in any statutory or non-statutory
                    proceeding and take such other actions, in its own name, or
                    in the name of the Holder of this Note or otherwise, as such
                    holders of Senior Indebtedness may deem necessary or
                    advisable for the enforcement of the provisions of this
                    Note; PROVIDED, HOWEVER, that the foregoing authorization
                    and empowerment imposes no obligation on the holders of
                    Senior Indebtedness to take any such action; and

                         iii. the Holder of this Note shall execute and deliver
                    such powers of attorney, assignments or proofs of claim or
                    other instruments as any holder of Senior Indebtedness may
                    reasonably request to enable such holder of Senior
                    Indebtedness to enforce any and all claims in respect of
                    this Note and to collect and receive any and all payments
                    and distributions which may be payable or deliverable at any
                    time upon or in respect of this Note; PROVIDED, that the
                    holders of Senior Indebtedness shall not exercise the rights
                    granted under this paragraph unless the Holder of this Note
                    has failed to take the necessary actions referenced above on
                    or prior to the date which is 15 days prior to the last date
                    on which such actions may be taken in accordance with
                    applicable law.

                  (f) The Holder of this Note consents that, without the
necessity of any reservation of rights against the Holder of this Note, and
without notice to or further assent by the Holder of this Note:

                         i. any demand for payment of any Senior Indebtedness
                    made by any holder of Senior Indebtedness may be rescinded
                    in whole or in part by such holder of Senior Indebtedness,
                    and any obligations under the Senior Indebtedness may be
                    continued, and the Senior Indebtedness, or the liability of
                    the Company or any guarantor or any other party upon or for
                    any part thereof, or any collateral security or guarantee
                    therefor or right of offset with respect thereto, or any
                    obligation or liability of the Company or any other party
                    under the Senior Indebtedness or any other agreement, may,
                    from time to time, in whole or in part, be renewed,
                    extended, modified, accelerated, compromised, waived,
                    surrendered, or released by any holder of Senior
                    Indebtedness; and

                         ii. the agreements relating to the Senior Indebtedness
                    may be amended, modified, supplemented or terminated, in
                    whole or in part, as any holder of Senior Indebtedness may
                    deem advisable from time to time, and any collateral
                    security at any time held by any holder of Senior
                    Indebtedness

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                    for the payment of any of the Senior Indebtedness may be
                    sold, exchanged, waived, surrendered or released, in each
                    case all without notice to or further assent by the Holder
                    of this Note, which will remain bound under this Section 8,
                    and all without impairing, abridging, releasing or affecting
                    the subordination provided for herein.

                  (g) Subject to the payment in full of all Senior Indebtedness,
the Holder will be subrogated to the rights of the holders of Senior
Indebtedness to receive payments or distributions of property of the Company
made with regard to the Senior Indebtedness until the principal and interest
with regard to this Note is paid in full. For the purpose of that subrogation,
no payment or distribution to the holders of Senior Indebtedness, which, except
for the provisions of this Paragraph 8, would be payable or distributable to the
Holder, will, as between the Company, its creditors other than holders of Senior
Indebtedness, and the Holder, be deemed to be a payment by the Company with
regard to the Senior Indebtedness, it being understood that the provisions of
this Paragraph 8, other than subparagraph (c), are intended solely for the
purpose of defining the relative rights of the Holder, on the one hand, and the
holders of the Senior Indebtedness, on the other.

                  (h) Nothing in this Paragraph 8 is intended to impair, as
between the Company, its creditors other than the holders of Senior
Indebtedness, and the Holder, the obligation of the Company, which is absolute
and unconditional, to pay the principal and interest on this Note when they
become due. Nothing in this Paragraph 8 prevents the Holder from exercising all
remedies otherwise permitted by law upon default under this Note, subject to the
rights of holders of Senior Indebtedness under this Paragraph 8.

                  (i) Any person who becomes the Holder of this Note, or an
interest in it, will be deemed to have agreed by acquiring this Note, or the
interest in it, to be bound by the provisions of this Paragraph 8.

         9. No amendment of this Note, waiver of any provision of this Note, or
extension of the time by which the Company must make any payment of principal or
interest on this Note, will be effective unless it is made in writing by the
Holder. Any waiver or extension will be effective only in the instance and for
the purpose for which it is given.

         10. The remedies provided in this Note are cumulative and are not
exclusive of any other remedies provided by law. The Company will pay on demand
any expenses (including reasonable attorneys fees and expenses) incurred by the
Holder in enforcing its rights under this Note.

         11. Any notices or other communications required or permitted to be
given under this Note must be in writing and will be deemed given on the day
when delivered in person or sent by facsimile (with proof of receipt at the
number to which it is required to be sent), or on the third business day after
the day on which it is mailed by first class mail from within the United States
of America, addressed (i) if to the Company, to the Company's principal
executive offices and to the

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                    principal facsimile number at those executive offices,
                    Attention: President, or at such other address or facsimile
                    number as the Company may specify to the Holder in writing,
                    and (ii) if to the Holder, at the address or facsimile
                    number specified by the Holder to the Company in writing.

         12. This Note will be binding upon Company and its assigns, and will
inure to the benefit of the Holder and the Holder's assigns. This Note will be
governed by, and construed under, the laws of the State of New York.

         IN WITNESS WHEREOF, the Company is executing this Note as of the date
shown on the first page.

                                   GENESIS WORLDWIDE INC.

                                   By:   /s/ Richard E. Clemens
                                      ------------------------------------------
                                         President and Chief Executive Officer

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                                                                    EXHIBIT 10.1

                                    AGREEMENT
                                    ---------

         THIS AGREEMENT is entered into this 29th day of August 2000 among
GENESIS WORLDWIDE INC. (formerly The Monarch Machine Tool Company), an Ohio
corporation ("Genesis"), each of the SELLING STOCKHOLDERS (as defined in Section
1 of this Agreement), and THREE CITIES RESEARCH, INC., a Delaware corporation,
solely as Stockholders Representative under the Stock Purchase Agreement (as
defined in Section 1 of this Agreement) ("TCR"), under the following
circumstances:

                  A. Genesis and the Selling Stockholders are parties to the
         Stock Purchase Agreement, pursuant to which Genesis purchased, and the
         Selling Stockholders sold to Genesis, all of the capital stock of
         Precision Industrial Corporation, a Delaware corporation (the
         "Company") on June 30, 1999;

                  B. In Article IX of the Stock Purchase Agreement, each of the
         Selling Stockholders appointed TCR as its representative and attorney
         in fact with respect to all matters concerning the Selling Stockholders
         set forth in the Stock Purchase Agreement or in any other agreements
         entered into by the Selling Stockholders in accordance with the Stock
         Purchase Agreement; and

                  C. Upon the terms and conditions set forth herein, Genesis and
         the Selling Stockholders desire to resolve certain differences that
         have arisen among them relating to the purchase of the capital stock of
         the Company pursuant to the Stock Purchase Agreement;

         NOW, THEREFORE, FOR GOOD AND VALUABLE CONSIDERATION, THE RECEIPT OF
WHICH IS HEREBY ACKNOWLEDGED, GENESIS, EACH OF THE SELLING STOCKHOLDERS AND TCR
AGREE AS FOLLOWS:

         SECTION 1. DEFINED TERMS. For purposes of this Agreement, the following
terms shall have the following meanings:

         "Agreement Regarding Shares" means the Agreement Regarding Shares,
dated June 30, 1999, between Genesis and TCR, as Stockholders Representative,
relating to the release of the Stock Consideration to the Selling Stockholders.

         "Interest Payment Agreement" means the Interest Payment Agreement,
dated June 27, 2000, between Genesis and TCR, as Stockholders Representative.

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         "Note/Warrant Agreement" means the Agreement among Genesis and the
Selling Stockholders, dated June 30, 1999, pursuant to which the Selling
Stockholders purchased the Subordinated Note and Genesis agreed, among other
things, to issue Warrants.

         "Selling Stockholders" means the persons and entities listed on Exhibit
A to the Stock Purchase Agreement, a copy of which is attached hereto as
APPENDIX A and incorporated herein by this reference.

         "Special Note" means the 8% Special Junior Subordinated Note in the
original principal amount of $840,000 issued by Genesis on June 30, 1999 to TCR,
as Stockholders Representative, in part payment of the purchase price provided
for in the Stock Purchase Agreement.

         "Stock Consideration" means the 500,000 common shares of Genesis
evidenced by Certificate No. C 15350, issued to TCR, as Stockholders
Representative, dated June 30, 1999, which were delivered in part payment of the
purchase price provided for in the Stock Purchase Agreement.

         "Stock Purchase Agreement" means the Stock Purchase Agreement between
Genesis and each of the Selling Stockholders dated May 13, 1999.

         "Subordinated Note" means the 12% Junior Subordinated Note of Genesis
in the original principal amount of $15,000,000 issued on June 30, 1999 to TCR,
as Stockholders Representative, pursuant to the Note/Warrant Agreement, as
amended by the Interest Payment Agreement.

         "Three Cities Research, Inc." means Three Cities Research, Inc., a
Delaware corporation, in its individual capacity and not in any representative
capacity.

         SECTION 2. SOLD COMPANIES LITIGATION AND CERTAIN OTHER MATTERS
INVOLVING SOLD COMPANIES.

         (A) At the time this Agreement is executed, TCR shall, in payment of
the obligations identified in Section 2(B) of this Agreement, wire transfer
$325,000 to Genesis in immediately available funds to an account designated by
Genesis in writing to TCR.

         (B) Upon receipt of the $325,000 payment, the following obligations
shall be deemed paid: (i) all costs known to, and incurred by, Genesis or a
subsidiary of Genesis at May 31, 2000 relating to litigation claims asserted
against companies previously sold by the Company and previously identified by
the parties as the Foster, Dunklin, Belcher, Sigmon, Grim, Viars, Dave,
Besavage, Kirkpatrick, and Callahan litigation claims; (ii) all costs known to,
and incurred by, Genesis or a subsidiary of Genesis at May 31, 2000 relating to
worker's compensation claims of employees of companies previously sold by the
Company, which claims are presently being administered by Genesis or a
subsidiary of Genesis in connection with certain insurance policies which have a
self-insured retention amount per claim; (iii) all costs known to, and incurred
by, Genesis or a subsidiary

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of Genesis at June 30, 2000 relating to unemployment taxes due to the State of
Illinois by Herr Voss Corporation for periods prior to June 30, 1999 which costs
were not recorded or paid at June 30, 1999 by Herr Voss Corporation; (iv) all
costs known to, and incurred by, Genesis or a subsidiary of Genesis at June 30,
2000 relating to a sales and use tax assessment by the State of Pennsylvania
against Herr Voss Corporation for periods prior to June 30, 1999 which costs
were not recorded or paid at June 30, 1999 by Herr Voss Corporation; and (v)
$8,500 in costs incurred or to be incurred by Genesis in connection with
obtaining a determination letter for the Roll Centers, Inc. 401(k) plan
established in 1993.

         (C) Except as specifically set forth in Section 2(B) of this Agreement,
nothing contained in this Agreement, including the provisions of Section 7 of
this Agreement, shall be construed or interpreted in any manner to reduce,
lessen, or limit the indemnification obligations of the Selling Stockholders
under "Paragraph 7.3 - Indemnification Against Liabilities with Regard to
Previously Sold Companies" and "Paragraph 7.4 - Tax Indemnification" of the
Stock Purchase Agreement. TCR hereby specifically acknowledges the obligation of
the Selling Stockholders to continue to pay promptly upon submission of proper
documentation claims covered by such paragraphs of the Stock Purchase Agreement.

         (D) Genesis or a subsidiary of Genesis has caused National City to
issue Letter of Credit No. SPA008072 (dated May 12, 1999) in the amount of
$350,000 for the benefit of Techint Technologies Inc. to cover claims arising
against Herr-Voss Industries, Inc. under the Settlement Agreement and Mutual
Release dated May 11, 1999 between Techint Technologies Inc. and Herr-Voss
Industries, Inc. (the "Techint LOC"). TCR hereby agrees that any payments
properly made under the Techint LOC to Techint are the responsibility of the
Selling Stockholders under Paragraph 7.3 of the Stock Purchase Agreement. As
soon as practical after the execution of this Agreement (but not more than 30
days thereafter), TCR shall deliver to Genesis a "back-up" letter of credit of a
commercial bank in favor of National City in the amount of $262,500 which shall
be designed to re-imburse the amount of any loss National City suffers as a
result of payment by National City to Techint under the Techint LOC. To the
extent that any such loss suffered by National City under the Techint LOC shall
exceed the face amount of the back-up letter of credit, the Selling Stockholders
shall directly reimburse National City the amount of such loss.

         (E) Genesis or a subsidiary of Genesis has caused ING (U.S.) Capital
LLC ("ING") to issue Letter of Credit No.G74626 (dated December 10,1999), as
amended by amendment no. 1 thereto (dated July 5, 2000) (the "ING LOC"), in the
amount of $720,000 for the benefit of the Zurich-American Insurance Group
("Zurich"), of which $507,000 is to cover the self-insured retention portion of
certain insurance claims as to which Salem Corporation retained responsibility
in connection with the sale of certain companies (the "Salem Obligations") and
for which Genesis is indemnified under Paragraph 7.3 of the Stock Purchase
Agreement. TCR hereby agrees that any payments properly made under the ING LOC
to Zurich to reimburse it for a Salem Obligation are the responsibility of the
Selling Stockholders under Paragraph 7.3 of the Stock Purchase Agreement. As
soon as practical after the execution of this Agreement (but not more than 30
days thereafter),

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TCR shall deliver to Genesis a "back-up" letter of credit of a commercial bank
in favor of ING in the amount of $380,250 which shall be designed to re-imburse
the amount of any loss ING suffers as a result of payment by ING to Zurich for a
Salem Obligation under the ING LOC. To the extent that any such loss suffered by
ING under the ING LOC shall exceed the face amount of the back-up letter of
credit, the Selling Stockholders shall directly reimburse ING the amount of such
loss.

         (F) In the event that Genesis notifies TCR in writing that ING has
advised Genesis that Genesis will be required to treat the full face amount the
Techint LOC and the ING LOC as indebtedness of Genesis, even though such
obligations are supported by the "back-up" letter of credit, then TCR agrees to
provide original letters of credit in lieu of "back-up" letters of credit, with
the same terms as the "back-up" letters of credit would have had, except they
will be direct obligations to Techint and Zurich, respectively.

         SECTION 3.  SUBORDINATED NOTE.

         (A) The Subordinated Note shall be amended as of July 1, 2000 to
reflect the following changes:

                  (1) The name "Genesis Worldwide Inc." shall be substituted for
         "The Monarch Machine Tool Company" to reflect the name change of the
         payor of the Subordinated Note;

                  (2) The principal amount of the Subordinated Note at July 1,
         2000 shall be changed to "$11,947,541," which amount was arrived at (i)
         by reducing the original principal amount of $15,000,000 by $3,500,000
         and (ii) by increasing the principal amount by $447,541 as required
         pursuant to Section 2 of the Interest Payment Agreement;

                  (3) For the period from July 1, 2000 through December 31,
         2001, the Subordinated Note shall bear interest at a rate of 9% per
         annum, with the applicable interest rate changing to 12.50% per annum
         effective January 1, 2002 until March 31, 2002 and increasing by 50
         basis points on April 1, 2002 and on each July 1, October 1, January 1,
         and April 1 after that until April 1, 2004, on and after which the rate
         of interest payable under the Subordinated Note will be 17% per annum;
         and

                  (4) The interest payment due and payable under the
         Subordinated Note on each of September 30, 2000, December 31,2000 and
         March 31, 2001 shall not be paid in cash, but in lieu thereof, an
         amount equal to such cash payment shall be paid by increasing the
         principal amount of the Subordinated Note by such amount effective on
         the respective dates that such interest payments are due and payable;
         and the principal amount of the Subordinated Note as so increased shall
         bear interest and be payable at the maturity date, all as provided in
         the Subordinated Note.

                                    10.1 - 4

<PAGE>   5

         (B) The Subordinated Note, as amended, to give effect to the provisions
of Section 3(A) of this Agreement shall be restated in the form set forth in the
"12% Junior Subordinated Note, As Restated," attached hereto as APPENDIX B (the
"Restated Subordinated Note"). At the time this Agreement is executed, Genesis
shall execute and deliver to TCR the Restated Subordinated Note, and TCR shall
deliver the Subordinated Note to Genesis for cancellation.

         (C) Upon the execution of this Agreement, the Interest Payment
Agreement shall be null and void and of no further force and effect.

         SECTION 4. SPECIAL NOTE. Notwithstanding anything contained in the
Special Note to the contrary, in the event that Genesis closes on the sale of
its 50% interest in the Nippon Herr Joint Venture and within five business days
after such closing, Genesis transfers and assigns to TCR a 50% interest in any
payments or other consideration it received or will receive for such interest
(the "Nippon Herr Consideration"), then the Special Note shall be deemed paid in
full. Genesis further agrees it will immediately upon the receipt of any Nippon
Herr Consideration assigned to TCR (and in no event, more than five business
days after the receipt of any such payment), deliver such payment to TCR.

         SECTION 5.  STOCK CONSIDERATION.

         (A) At the time this Agreement is executed, TCR shall transfer and
assign the Stock Consideration to Genesis by surrendering Genesis Certificate
No. 15350 to Genesis, endorsed in blank. Upon the transfer and assignment of the
Stock Consideration to Genesis, the Selling Stockholders shall have no further
interest in the Stock Consideration.

         (B) Upon the execution of this Agreement, the Agreement Regarding
Shares shall be null and void and of no further force and effect.

         SECTION 6.  NOTE/WARRANT AGREEMENT.

         (A) Notwithstanding anything contained in the Note/Warrant Agreement or
any related document to the contrary, Genesis is hereby released of any
obligation to issue and sell warrants to purchase shares of its common stock to
the Selling Stockholders. The parties hereto acknowledge that Warrant No. W-001
for the purchase of 100,000 shares of common stock of Genesis, issued to TCR on
June 30, 1999, which will remain outstanding, is the only warrant to purchase
shares of common stock issued or issuable in connection with the Note/Warrant
Agreement as modified by this Section 6.

         (B) J. William Uhrig shall not be designated to serve as a director of
Genesis by TCR pursuant to Section 3 of the Note/Warrant Agreement.

                                    10.1 - 5

<PAGE>   6

         SECTION 7.  RELEASES.

         (A) Genesis hereby releases and discharges Selling Stockholders, TCR,
and Three Cities Research, Inc. from any and all claims, causes of action,
claims for relief, damages and demands of whatsoever kind or nature which
Genesis had, now has, or may hereafter have against any of them ("Claims"),
arising, directly or indirectly, out of or in an way connected with or based
upon "Paragraph 3.2. Selling Stockholders' Joint Representations and Warranties"
of the Stock Purchase Agreement, or out of or in any way connected with or based
upon any related claim under "Paragraph 7.1 Indemnification Against Loss Due to
Inaccuracies in Selling Stockholders' Representations and Warranties," except
that the foregoing release and discharge shall not apply to Claims arising under
the Paragraph 3.2(c) of such Paragraph or out of or in any way connected with or
based upon any claim under "Paragraph 7.1 Indemnification Against Loss Due to
Inaccuracies in Selling Stockholders' Representations and Warranties" related to
Paragraph 3.2(c) or to claims arising under this Agreement.

         (B) The Selling Stockholders, TCR, and Three Cities Research, Inc.
hereby release and discharge Genesis from any and all claims, causes of action,
claims for relief, damages and demands of whatsoever kind or nature which the
Selling Stockholders, TCR, or Three Cities Research, Inc. had, now has, or may
hereafter have ("Claims"), arising, directly or indirectly, out of or in an way
connected with or based upon the letter of Richard E. Clemens to TCR, dated
April 27, 2000, or "Article 3.3. Buyer's Representations and Warranties" of the
Stock Purchase Agreement, except that the foregoing release and discharge shall
not apply to Claims arising under Paragraphs 3.3(a), 3.3(b), 3.3(c), 3.3(k) or
3.3(l) of such Paragraph 3.3 or to claims arising under this Agreement.

         (C) When used in this Section 7, (i) "Genesis" means Genesis, any
subsidiary of Genesis, any director, officer, or agent of Genesis or any
subsidiary of Genesis and the successors, heirs, administrators, executors and
assigns of any of the foregoing, (ii) "Selling Stockholders" means each of the
Selling Stockholders, TCR, and any director, officer, partner, or agent of
either a Selling Stockholder or TCR and the successors, heirs, administrators,
executors and assigns of any of the foregoing, and (iii) "Three Cities Research,
Inc." means Three Cities Research, Inc., any director, officer, partner, or
agent of Three Cities Research, Inc. and the successors, heirs, administrators,
executors and assigns of any of the foregoing

         SECTION 8.  REPRESENTATIONS.

         (A) Three Cities Research, Inc. represents and warrants that it has the
authority to enter into this Agreement on behalf of each of the Selling
Stockholders and to perform all acts or make all representations described in
this Agreement on behalf of each of the Selling Stockholders. Three Cities
Research, Inc. agrees to hold Genesis harmless from any loss it may suffer as a
result of a breach of the foregoing representation.

                                    10.1 - 6

<PAGE>   7

         (B) Genesis represents and warrants that it has the authority to enter
into this Agreement and that after a complete investigation, it did not obtain
any information indicating any fraud by the Selling Stockholders (as defined at
Section 7(C), above) or TCR.

         SECTION 9. GOVERNING LAW. This Agreement and the obligations of the
parties and the rights of the parties hereunder shall will be governed by the
substantive laws of Delaware.

         SECTION 10. FURTHER ACTIONS. Each party hereto agrees to take promptly
all actions reasonably necessary to carry out the terms, conditions and intent
of this Agreement.

         SECTION 11. NOTICES. Any notice or other communication under or
relating to this Agreement shall be given as provided in Paragraph 10.7 of the
Stock Purchase Agreement.

         SECTION 12. CONSTRUCTION. Genesis, TCR, and Three Cities Research, Inc.
have jointly drafted this Agreement and, therefore, no provision of this
Agreement will be construed against any party based upon authorship.

         SECTION 13. SIGNATURES. This Agreement may be executed in multiple
copies and signatures may be made by facsimile transmissions.

         SECTION 14. NO RELIANCE. Genesis, TCR, and Three Cities Research, Inc.
acknowledge that they have not relied on any statement, representation,
omission, inducement, or promise by the other party (or any other officer,
agent, employee, representative, or attorney for any other party) in executing
this Agreement except as expressly stated in this Agreement.

         SECTION 15. NO ADMISSION OF LIABILITY. Genesis and TCR acknowledge that
this Agreement is the result of the compromise of disputed claims; accordingly,
this Agreement is not to be construed as an admission of any liability, fault,
or responsibility on the part of Genesis, any of the Selling Stockholders or
TCR.

         SECTION 16. VOLUNTARY AGREEMENT. Genesis and TCR represent and warrant
that they have read this Agreement and know and understand its full content;
Genesis, each of the Selling Stockholders, and TCR voluntarily enter into this
Agreement after full consultation with counsel.

         SECTION 17. OTHER AGREEMENTS. Except as amended, modified, or
superceded by specific provisions of this Agreement, the Stock Purchase
Agreement and the Note/Warrant Agreement shall continue in full force and
effect.

         IN WITNESS WHEREOF, the parties hereto have executed this Agreement as
of the date and year first written above.

                                    10.1 - 7

<PAGE>   8

GENESIS WORLDWIDE INC.                          THREE CITIES RESEARCH, INC., AS
                                                 STOCKHOLDERS REPRESENTATIVE

By: /s/ Richard E. Clemens                      By: /s/ William Uhrig
    -----------------------------------            -----------------------------
    Richard E. Clemens, President & CEO         Its: Partner

EACH OF THE SELLING STOCKHOLDERS
LISTED ON APPENDIX A HERETO

By       Three Cities Research, Inc.,As Attorney in Fact for each of the Selling
         Stockholders listed on Appendix A hereto

By: /s/ William Uhrig
   ----------------------
Its: Partner
                    AGREEMENTS BY THREE CITIES RESEARCH, INC.
                    -----------------------------------------

         For good and valuable consideration, Three Cities Research, Inc.,
individually for itself and not in any representative capacity, hereby agrees to
the provisions of Sections 7, 8, 12 and 14 of the foregoing Agreement.

         IN WITNESS WHEREOF, the undersigned Three Cities Research, Inc. has
executed this addendum to the forgoing Agreement as of the date and year first
written above.

                                         THREE CITIES RESEARCH, INC.

                                         By: /s/ William Uhrig
                                            -----------------------------------
                                         Its: Partner

                                    10.1 - 8

<PAGE>   9

                                                                      APPENDIX A

Three Cities Fund II LP
Three Cities Offshore II CV
Wynnefield Partners Small Cap Value LP
Allied Capital Corporation
Allied Investment Corporation

Anthony T. Castor, III
Michael H. Bulkin
J. Murfree Butler
Stephen G. Cerri
A.A. Fornataro
Michael S. Levin

Gerald L. Brenneman                   Donald J. Mudric
William H. Carver                     Frank W. Petraglia
Steven B. Chinchi                     Teresa D. Phillips
Vernon E. Collins                     James L. Phillis
Joseph L. Cugini                      William D. Presutti
Webley M. Dias                        Michael A. Santillo
Martin C. Dillner                     Karl T. Schoeffel
M. James Ditallo                      Carl H. Simpson
George A. Douglas                     Blake C. Steele
Audie K. Dunbar                       Richard J. Stock
John A. Fischer                       David D. Struth
Thomas M. Fitzwilliams                Mark E. Sutherland
George R. Goldner                     Mark T. Swain
Richard L. Goldner                    Henry E. Theis
Francis J. Gordon                     Glyn R. Vaughan
Gary D. Hart                          William R. Weber
Thomas F. Hazen                       Edward R. Woods
Marvin T. Knepp                       Lloyd P. Zahn
Harry F. Leonard
William A. Lindner
Frank S. Ludwiczak
John A. Marzula
Miros J. Maszczak
Michael W. McGraw
Melinda S. McKee
James N. McKenna
Mark J. Menego
Robert F. Mikesell
Charles L. Miller
Kenneth H. Miller

                                    10.1 - 9

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