Document:

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                                                                    Exhibit 10-2

                                    AGREEMENT
             (Junior Subordinated Convertible Increasing Rate Notes)

        This Agreement dated as of July 31, 2003 (the "Agreement"), among
Lexington Precision Corporation, a Delaware corporation (the "Company"), Michael
A. Lubin ("Lubin"), and Warren Delano ("Delano"; Lubin and Delano are sometimes
referred to herein individually as "Holder" and collectively as the "Holders").

        WHEREAS, Lubin and Delano were the holders of certain Junior
Subordinated Convertible Increasing Rate Notes due May 1, 2000, of the Company
in the aggregate original principal amounts of U.S. $505,000 and $495,000,
respectively (individually, a "Note" and collectively, the "Notes");

        WHEREAS, on January 31, 2000, the Holders agreed to defer the payment of
certain Defaulted Interest to May 1, 2000;

        WHEREAS, on April 30, 2000, the Holders agreed to further defer the
payment of such Defaulted Interest to August 1, 2000;

        WHEREAS, on July 31, 2000, the Holders agreed to further defer the
payment of such Defaulted Interest to November 1, 2000;

        WHEREAS, on October 31, 2000, the Holders agreed to further defer the
payment of such Defaulted Interest to February 1, 2001;

        WHEREAS, on January 31, 2001, the Holders agreed to further defer the
payment of such Defaulted Interest to May 1, 2001;

        WHEREAS, on April 30, 2001, the Holders agreed to further defer the
payment of such Defaulted Interest to August 1, 2001;

        WHEREAS, on July 31, 2001, the Holders agreed to further defer the
payment of such Defaulted Interest to November 1, 2001;

        WHEREAS, on October 31, 2001, the Holders agreed to further delay the
payment of such Defaulted Interest to February 1, 2002;

        WHEREAS, on January 31, 2002, the Holders agreed to further delay the
payment of such Defaulted Interest to May 1, 2002;

        WHEREAS, on April 30, 2002, the Holders agreed to further delay the
payment of such Defaulted Interest to July 31, 2002;

        WHEREAS, on July 31, 2002, the Holders agreed to further delay the
payment of such Defaulted Interest to November 1, 2002;

        WHEREAS, on October 31, 2002, the Holders agreed to further delay the
payment of such Defaulted Interest to February 1, 2003;

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        WHEREAS, on January 31, 2003, the Holders agreed to further delay the
payment of such Defaulted Interest to May 1, 2003;

        WHEREAS, on April 30, 2003, the Holders agreed to further defer the
payment of such Defaulted Interest to August 1, 2003;

        WHEREAS, on February 1, 2000, the Holders converted the Notes into
shares of common stock, par value $.25 per share, of the Company; and

        WHEREAS, the Company and Holders desire to, among other things, further
defer the payment of such Defaulted Interest and provide for the waiver of
certain events of default, all on and subject to the terms hereof;

        NOW, THEREFORE, in consideration of the mutual covenants contained
herein and for other good and valuable consideration, the receipt and adequacy
of which are hereby acknowledged, the parties hereto intending to be legally
bound, hereby agree as follows:

        1.      Waiver. Subject to paragraph 2 hereof, each Holder hereby waives
any Event of Default under the Notes resulting solely from the failure of the
Company to pay any principal or interest due on (a) the Company's 12 3/4% Senior
Subordinated Notes due February 1, 2000, or (b) the Company's 10 1/2% Senior
Note due April 30, 2002 (the indebtedness referred to in clauses (a) and (b) is
referred to herein as the "Other Indebtedness").

        2.      Rescission of Waivers. The waivers in paragraph 1 hereof shall
be automatically rescinded, without notice to the Company, in the event that the
holders of the Other Indebtedness, or the trustee in respect thereof, seeks to
accelerate the maturity of any such Other Indebtedness or to enforce or exercise
any remedies in respect thereof.

        3.      Modification of Original Notes.

                Notwithstanding anything to the contrary in the Notes, the
Company and each Holder hereby agree that the interest on the Notes that is due
and payable on August 1, 2003 (the "August 2003 Interest Payment"), will be
deemed to be Defaulted Interest but will be payable on November 1, 2003.

        4.      Effective Date; Applicability; Legend.

                This Agreement shall be deemed effective as of July 31, 2003.
This Agreement shall modify each Note and each replacement note issued upon
transfer of, in exchange for, or in lieu of any Note or any replacement note.
Each Holder agrees that the Holder will cause the following legend to be placed
prominently on each Note and that any replacement note or notes issued by the
Company upon transfer of, in exchange for, or in lieu of the Note or any
replacement note shall have such legend placed thereon:

                THIS NOTE HAS BEEN MODIFIED PURSUANT TO THOSE CERTAIN AGREEMENTS
        DATED AS OF JANUARY 31, 2000, APRIL 30, 2000, JULY 31, 2000, OCTOBER 31,
        2000, JANUARY 31, 2001, APRIL 30, 2001, JULY 31, 2001, OCTOBER 31, 2001,
        JANUARY 31, 2002, APRIL 30, 2002, JULY 31, 2002, OCTOBER 31, 2002,
        JANUARY 31, 2003, APRIL 30, 2003, AND JULY 31, 2003, COPIES OF WHICH ARE

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        AVAILABLE FOR INSPECTION AT THE OFFICES OF THE COMPANY AT 767 THIRD
        AVENUE, 29TH FLOOR, NEW YORK, NEW YORK, AND REFERENCE SHOULD BE MADE
        THERETO FOR THE TERMS THEREOF.

        5.      Representations and Warranties. Each of the parties represents
and warrants that: (a) the execution, delivery and performance of this Agreement
have been duly authorized by all requisite action on his or its part; and (b)
this Agreement has been duly executed and delivered by him or it and constitutes
his or its legal, valid, and binding agreement, enforceable against him or it in
accordance with its terms, except as such enforceability may be limited by
applicable bankruptcy, insolvency, reorganization, moratorium, or similar laws
affecting the enforceability of creditors' rights generally or general equitable
principles.

        6.      No Other Amendments.

                Except as expressly amended, waived, modified, and supplemented
hereby, each Note shall remain in full force and effect in accordance with its
terms. Without limiting the generality of the foregoing, except as set forth in
Section 1, 2 or 3 of this Agreement, nothing herein shall constitute a waiver of
any rights or remedies of any Holder upon the occurrence of any Event of
Default.

        7.      General Provisions.

                (a)     Defined Terms. Capitalized terms used herein, unless
otherwise defined herein, shall have the meaning ascribed thereto in the Notes.

                (b)     Counterparts. This Agreement may be executed by the
parties in any number of counterparts and all of said counterparts taken
together shall be deemed to constitute one and the same instrument. This
Agreement may be signed by facsimile transmission of the relevant signature
pages hereof.

                (c)     Governing Law. This Agreement shall be governed by, and
construed and interpreted in accordance with, the internal laws of the State of
New York.

                (d)     Successors and Assigns. This Agreement shall be binding
upon and inure to the benefit of the heirs, successors, and assigns of the
parties hereto and any and all transferees and holders of the Notes or any
replacement note.

                (e)     Headings. The paragraph headings of this Agreement are
for convenience of reference only and are not to be considered in construing
this Agreement.

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        IN WITNESS WHEREOF, the Company and each Holder have caused this
Agreement to be duly executed and delivered as of the date first written above.

                                         LEXINGTON PRECISION CORPORATION

                                         By:    /s/ Michael A. Lubin
                                                --------------------------------
                                         Name:  Michael A. Lubin
                                                --------------------------------
                                         Title: Chairman of the Board
                                                --------------------------------

                                                  /s/ Michael A. Lubin
                                         ---------------------------------------
                                                     Michael A. Lubin

                                                    /s/ Warren Delano
                                         ---------------------------------------
                                                      Warren Delano

                                      - 4 -<PAGE>

                                                                    Exhibit 10-3

                                                          May 21, 2003

Lexington Precision Corporation
767 Third Avenue
New York, New York 10017

               Re:    Amendment to Financing Agreements

Gentlemen:

        Reference is made to certain financing agreements dated January 11, 1990
between Lexington Precision Corporation ("LPC") and Congress Financial
Corporation ("Congress"), including, but not limited to, an Accounts Financing
Agreement [Security Agreement], as amended (the "Accounts Agreement"), and all
supplements thereto and all other related financing and security agreements
(collectively, all of the foregoing, as the same have heretofore or
contemporaneously been or may be hereafter, amended, replaced, extended,
modified or supplemented, the "Financing Agreements").

        In connection with the financing arrangements pursuant to the Accounts
Agreement and the other Financing Agreements, the parties hereto hereby agree to
amend the Financing Agreements, as set forth below:

        1.      Definitions. Capitalized terms used herein, unless otherwise
defined herein, shall have the meanings ascribed thereto in the Accounts
Agreement and the other Financing Agreements.

        2.      Maximum Credit. Section 1.7 of the Accounts Agreement is hereby
deleted in its entirety and the following substituted therefor:

                    "1.7 'Maximum Credit' shall mean the amount of $40,000,000."

        3.      Term. The first sentence of Section 9.1 of the Accounts
Agreement, as heretofore amended, is hereby deleted in its entirety and replaced
with the following:

                "This Agreement shall become effective upon acceptance by you
        and shall continue in full force and effect for a term ending
        July 9, 2003 (the "Renewal Date"), unless sooner terminated pursuant to
        the terms hereof."

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        4.      Amendment Fee. In consideration of the amendments set forth
herein, LPC shall on the date hereof, pay to Congress or Congress, at its
option, may charge the account of LPC maintained by Congress, an amendment fee
in the amount of $48,000 (less the amount of any amendment fee paid by LRG to
Congress pursuant to the letter agreement re: Amendment to Financing Agreements,
dated of even date herewith, by and between Congress and LRG), which fee is
fully earned as of the date hereof and shall constitute part of the Obligations.

        5.      Representations, Warranties and Covenants. In addition to the
continuing representations, warranties and covenants heretofore or hereafter
made by LPC to Congress pursuant to the Financing Agreements, LPC hereby
represents, warrants and covenants with and to Congress as follows (which
representations, warranties and covenants are continuing and shall survive the
execution and delivery hereof and shall be incorporated into and made a part of
the Financing Agreements):

                (a)     No Event of Default exists or has occurred and is
continuing on the date of this Amendment.

                (b)     This Amendment has been duly executed and delivered by
LPC and is in full force and effect as of the date hereof, and the agreements
and obligations of LPC contained herein constitute the legal, valid and binding
obligations of LPC enforceable against LPC in accordance with their terms.

        6.      Conditions to Effectiveness of Amendment. Anything contained in
this Amendment to the contrary notwithstanding, the terms and provisions of this
Amendment shall only become effective upon the satisfaction of the following
additional conditions precedent:

                (a) Each of Congress and LPC shall have received an executed
original or executed original counterparts (as the case may be) of this
Amendment and an executed copy of the Agreement, dated as of May 21, 2003,
attached hereto as Exhibit A, together with an Amendment between LRG and
Congress dated of even date herewith with respect to the LRG Financing
Agreements and the documents and instruments required thereunder (if any) and
the satisfaction of all conditions precedent to the effectiveness thereof, which
shall be in form and substance satisfactory to Congress;

                (b) All representations and warranties contained herein, in the
Accounts Agreement and in the other Financing Agreements shall be true and
correct in all material respects; and

                (c) No Event of Default shall have occurred and no event shall
have occurred or condition be existing which, with notice or passage of time or
both, would constitute an Event of Default.

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        7.      Effect of this Amendment. Except as modified pursuant hereto,
the Accounts Agreement and all supplements to the Accounts Agreement and all
other Financing Agreements, are hereby specifically ratified, restated and
confirmed by the parties hereto as of the date hereof and no existing defaults
or Events of Default have been waived in connection herewith. To the extent of
conflict between the terms of this Amendment and the Accounts Agreement or any
of the other Financing Agreements, the terms of this Amendment control.

        8.      Further Assurances. LPC shall execute and deliver such
additional documents and take such additional actions as may reasonably be
requested by Congress to effectuate the provisions and purposes of this
Amendment.

        9.      Governing Law. This Amendment shall be governed by and construed
in accordance with the laws of the State of New York without reference to its
principles of conflicts of law.

        10.     Counterparts. Delivery of an executed counterpart of this
Amendment by telefacsimile shall have the same force and effect as delivery of
an original executed counterpart of this Amendment.

                [REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]

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        By the signatures hereto of the duly authorized officers, the parties
hereto mutually covenant, warrant and agree as set forth herein.

                                            Very truly yours,

                                            CONGRESS FINANCIAL CORPORATION

                                            By:    /s/ Herbert C. Korn
                                                   -----------------------------

                                            Title: Vice President
                                                   -----------------------------

AGREED AND ACCEPTED:

LEXINGTON PRECISION CORPORATION

By:    /s/ Michael A. Lubin
       -------------------------------------

Title: Chairman of the Board
       -------------------------------------

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                                     CONSENT

        The undersigned guarantor hereby consents to the foregoing Amendment,
agrees to be bound by its terms applicable to it, and ratifies and confirms the
terms of its Guarantee and Waiver dated January 11, 1990 as applicable to all
present and future indebtedness, liabilities and obligations of LEXINGTON
PRECISION CORPORATION ("LPC") to CONGRESS FINANCIAL CORPORATION ("Congress"),
including, without limitation, all indebtedness, liabilities and obligations
under the Financing Agreements as amended hereby.

                                            LEXINGTON RUBBER GROUP, INC.

                                            By:    /s/ Michael A. Lubin
                                                   -----------------------------

                                            Title: Chairman of the Board
                                                   -----------------------------

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                                                                       EXHIBIT A

                                    AGREEMENT

        This Agreement dated as of May 19, 2003 (the "Agreement"), among
Lexington Precision Corporation, a Delaware corporation (the "LPC"), Lexington
Rubber Group, Inc., a Delaware corporation formerly known as Lexington
Components, Inc. ("LRG"; LPC and LRG are referred to individually as "Borrower"
and collectively as the "Borrowers"), and Congress Financial Corporation
("Congress").

        WHEREAS, Congress and each of the Borrowers have entered into an
Accounts Financing Agreement [Security Agreement] dated as of January 11, 1990,
as amended, and all supplements thereto and related financing and security
agreements (all of the foregoing, as the same have been or may be amended,
replaced, extended, modified, or supplemented, are referred to as the "Financing
Agreements").

        NOW, THEREFORE, in consideration of the mutual covenants contained
herein and for other good and valuable consideration, the receipt and adequacy
of which are hereby acknowledged, the parties hereto, intending to be legally
bound, hereby agree as follows:

        1.      Waiver. Subject to paragraph 2 hereof, Congress hereby waives,
until July 11, 2003, any Event of Default resulting solely from the failure of
the LPC to pay any principal or interest due on (a) LPC's 14% Junior
Subordinated Notes due May 1, 2002, (b) LPC's Junior Subordinated Convertible
Increasing Rate Notes due May 1, 2000, (c) LPC's 12 3/4% Senior Subordinated
Notes due February 1, 2000, and/or (d) the 10-1/2% Senior Note due May 1, 2002,
of LPC and LRG (the indebtedness referred to in clauses (a), (b), and (c) is
referred to herein as the "Other Indebtedness").

        2.      Rescission of Waivers. The foregoing waivers shall be
automatically rescinded, without notice to LPC or LRG, in the event that the
holder of any Other Indebtedness or trustee in respect thereof seeks to
accelerate the maturity of any such Other Indebtedness or to enforce or exercise
any remedies in respect thereto.

        3.      Effective Date.

                This Agreement shall be deemed effective as of May 21, 2003.

        4.      Representations and Warranties. Each of the parties represents
and warrants that: (a) the execution, delivery, and performance of this
Agreement have been duly authorized by all requisite action on its part; and (b)
this Agreement has been duly executed and delivered by it and constitutes its
legal, valid, and binding agreement, enforceable against it in accordance with
its terms, except as such enforceability may be limited by applicable
bankruptcy, insolvency, reorganization, moratorium, or similar laws affecting
the enforceability of creditors' rights generally or by general equitable
principles.

        5.      No Other Amendments.

Except as set forth herein, all terms and provisions of the Financing Agreements
among Congress, LPC and LRG shall remain in full force and effect. Except as
expressly set forth herein, no other or further amendment, waiver or consent is
implied by, and LPC and LRG shall not be entitled to, any other or further
amendment, waiver or consent by virtue of the provisions of this Agreement. In
addition,

<PAGE>

without limiting the foregoing, the waivers of Congress set forth herein do not
constitute an agreement to, and LPC and LRG acknowledge that Congress may
decline to, grant any other or further waivers with respect to the subject
matter hereof or any other matters regardless of whether or not there occurs any
change in facts or circumstances relating to LPC and/or LRG.

        6.      General Provisions.

                (a)     Defined Terms. Capitalized terms used herein, unless
otherwise defined herein, shall have the meaning ascribed thereto in the
Financing Agreements.

                (b)     Counterparts. This Agreement may be executed by the
parties in any number of counterparts and all of said counterparts taken
together shall be deemed to constitute one and the same instrument. This
Agreement may be signed by facsimile transmission of the relevant signature
pages hereof.

                (c)     Governing Law. This Agreement shall be governed by, and
construed and interpreted in accordance with, the internal laws of the State of
New York.

                (d)     Successors and Assigns. This Agreement shall be binding
upon and inure to the benefit of the successors and assigns of the parties
hereto.

                (e)     Headings. The paragraph headings of this Agreement are
for convenience of reference only and are not to be considered in construing
this Agreement.

<PAGE>

                IN WITNESS WHEREOF, each Borrower and Congress have caused this
Agreement to be duly executed and delivered as of the date first written above.

                                         LEXINGTON PRECISION CORPORATION

                                         By:    /s/ Michael A. Lubin
                                                --------------------------------
                                         Name:  Michael A. Lubin
                                                --------------------------------
                                         Title: Chairman of the Board
                                                --------------------------------

                                         LEXINGTON RUBBER GROUP, INC.

                                         By:    /s/ Michael A. Lubin
                                                --------------------------------
                                         Name:  Michael A. Lubin
                                                --------------------------------
                                         Title: Chairman of the Board
                                                --------------------------------

                                         CONGRESS FINANCIAL CORPORATION

                                         By:    /s/ Herbert C. Korn
                                                --------------------------------
                                         Name:  Herbert C. Korn
                                                --------------------------------
                                         Title: Vice President
                                                --------------------------------

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