Document:

EXHIBIT 4.1

                              LETTER AMENDMENT

                                                  Dated as of September 3, 2004

To the banks, financial institutions
  and other institutional lenders
  (collectively, the "Lenders") parties
  to the Credit Agreement referred to
  below and to Bank of America, N.A.
  and Keybank National Association,
  as co-administrative agents
  (the "Agents") for the Lenders

Ladies and Gentlemen:

          We refer to the Credit Agreement dated as of December 31, 2002 (as
amended, supplemented or otherwise modified through the date hereof, the
"Credit Agreement") among the undersigned and you and the other Lenders party
thereto from time to time.  Capitalized terms not otherwise defined in this
Letter Amendment have the same meanings as specified in the Credit Agreement.

          It is hereby agreed by you and us as follows:

          The Credit Agreement is, effective as of the date of this Letter
Amendment, hereby amended as follows:

          (a)  Section 1.01 is amended by amending the definition of
"Subsidiary" to add the following proviso at the end of the first sentence
thereof:

          "provided, that notwithstanding the foregoing, PEL Technologies,
L.L.C. shall not be a Subsidiary hereunder"

          (b)  Section 2.05(b) is amended by amending and restating the first
proviso set forth therein to read in full as follows:

          "provided, however, that the Borrower shall be required to prepay
           Revolving Credit Loans with the Net Cash Proceeds of any Disposition
           of any property or assets permitted by Sections 7.05(f), (i) and
           (j) only to the extent that the aggregate Net Cash Proceeds from all
           such Dispositions exceeds $270,000,000;"

          This Letter Amendment shall become effective as of the date first
above written when, and only when the Agents shall have received counterparts of
this Letter Amendment executed by the undersigned and the Required Lenders or,
as to any of the Lenders, advice satisfactory to the Agents that such Lender has
executed this Letter Amendment, and the consent attached hereto executed by the
Guarantors.  This Letter Amendment is subject to the provisions of Section 10.01
of the Credit Agreement.

          On and after the effectiveness of this Letter Amendment, each
reference in the Credit Agreement to "this Agreement", "hereunder", "hereof" or
words of like import referring to the Credit

                                       2

Agreement, and each reference in the Notes and each of the other Loan Documents
to "the Credit Agreement", "thereunder", "thereof" or words of like import
referring to the Credit Agreement, shall mean and be a reference to the Credit
Agreement, as amended by this Letter Amendment.

          The Credit Agreement, the Notes and each of the other Loan Documents,
as specifically amended by this Letter Amendment, are and shall continue to be
in full force and effect and are hereby in all respects ratified and confirmed.
The execution, delivery and effectiveness of this Letter Amendment shall not,
except as expressly provided herein, operate as a waiver of any right, power or
remedy of any Lender or the Agents under any of the Loan Documents, nor
constitute a waiver of any provision of any of the Loan Documents.

          If you agree to the terms and provisions hereof, please evidence such
agreement by executing and returning (i) one counterpart of this Letter
Amendment by fax to Jessica Miller, Shearman & Sterling (telephone 212-848-7631,
fax 646-848-7631) no later than noon on Tuesday, August 31, 2004 and (ii) at
least three counterparts of this Letter Amendment to Jessica Miller, Shearman &
Sterling, 599 Lexington Avenue, New York, New York at your earliest convenience.

          This Letter Amendment 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 one and the same agreement.  Delivery of an executed counterpart
of a signature page to this Letter Amendment by telecopier shall be effective as
delivery of a manually executed counterpart of this Letter Amendment.

                                       3

          This Letter Amendment shall be governed by, and construed in
accordance with, the laws of the State of New York.

                                     Very truly yours,

                                     THE TIMKEN COMPANY

                                     By /s/Sallie B. Bailey
                                        Title:  Senior Vice President-
                                        Finance and Corporate Controller

Agreed as of the date first above written:

KEYBANK NATIONAL ASSOCIATION,
  as Co-Administrative Agent and as Lender

By /s/Marianne T. Meil
   Title:  Vice President

BANK OF AMERICA, N.A.,
  as Co-Administrative Agent and as Lender

By /s/Thomas R. Durham
   Title:  Managing Director

                                       4

Agreed as of the date first above written:

_________________________________
The Bank of New York

By /s/Kenneth R. McDonnell
   Title:  Vice President

                                    CONSENT

                                                   Dated as of September 3, 2004

          Each of the undersigned, as Guarantors under the Subsidiary Guaranty
dated as of December 31, 2002, as supplemented by the Subsidiary Guaranty
Supplements dated February 18, 2003 (collectively, the "Guaranty") in favor of
the Agents and the Lenders party to the Credit Agreement referred to in the
foregoing Letter Amendment, hereby consents to such Letter Amendment and hereby
confirms and agrees that notwithstanding the effectiveness of such Letter
Amendment, the Guaranty is, and shall continue to be, in full force and effect
and is hereby ratified and confirmed in all respects, except that, on and after
the effectiveness of such Letter Amendment, each reference in the Guaranty to
the "Credit Agreement", "thereunder", "thereof" or words of like import shall
mean and be a reference to the Credit Agreement, as amended by such Letter
Amendment.

                                       EDC, INC.

                                       By /s/Scott A. Scherff
                                          Title:  Secretary

                                           HANDPIECE HEADQUARTERS CORPORATION

                                           By /s/Scott A. Scherff
                                              Title:  Assistant Secretary

                                           KILIAN HOLDINGS, INC.

                                           By /s/Scott A. Scherff
                                              Title:  Secretary

                                           KILIAN MANUFACTURING CORPORATION

                                           By /s/Scott A. Scherff
                                              Title:  Secretary

                                           LATROBE STEEL COMPANY

                                           By /s/Scott A. Scherff
                                              Title:  Assistant Secretary

                                           MPB CORPORATION

                                           By /s/Scott A. Scherff
                                              Title:  Assistant Secretary

                                           MPB EXPORT CORPORATION

                                           By /s/Scott A. Scherff
                                              Title:  Assistant Secretary

                                           OH&R SPECIAL STEELS COMPANY

                                           By /s/Scott A. Scherff
                                              Title:  Secretary

                                           RAIL BEARING SERVICE CORPORATION

                                           By /s/Scott A. Scherff
                                              Title:  Assistant Secretary

                                           TIMKEN COMMUNICATIONS COMPANY

                                           By /s/Scott A. Scherff
                                              Title:  Secretary

                                           THE TIMKEN CORPORATION

                                           By /s/Scott A. Scherff
                                              Title:  Corporate Secretary and
                                              Assistant General Counsel

                                           TIMKEN INDUSTRIAL SERVICES, LLC

                                           By /s/Scott A. Scherff
                                              Title:  Secretary

                                           TIMKEN SERVICE AND SALES COMPANY

                                           By /s/Scott A. Scherff
                                              Title:  Secretary

                                           TIMKEN US CORPORATION
                                           (F/K/A THE TORRINGTON COMPANY)

                                           By /s/Scott A. Scherff
                                              Title:  Corporate Secretary and
                                              Assistant General Counsel

C:\\\\Basinski\Timken Corp\2005\NYDOCS03-737734-Letter Amend to Credit Agr-
conformed.doc

                                       4

Agreed as of the date first above written:

THE BANK OF TOKYO-MITSUBISHI, LTD., CHICAGO BRANCH

By /s/Shinichiro Munechika
   Title:  Deputy General Manager

                                       4

Agreed as of the date first above written:

Branch Banking and Trust Co.

By /s/
   Title:  VP

                                       4

Agreed as of the date first above written:

_________________________________
CIBC Inc.

By /s/George Knight
   Title:  Managing Director
           CIBC World Markets Corp. as Agent

                                       4

Agreed as of the date first above written:

Citizens Bank of Pennsylvania

By /s/Debra L. McAllonis
   Title:  Senior Vice President

                                       4

Agreed as of the date first above written:

Fifth Third Bank

By /s/
   Title:  Vice President

                                       4

Agreed as of the date first above written:

HSBC Bank USA, National Association

By /s/
   Title:  Senior Vice President, #9426

                                       4

Agreed as of the date first above written:

Mellon Bank, N.A.

By /s/
   Title:  Vice President

                                       4

Agreed as of the date first above written:

Merrill Lynch Capital Corporation

By /s/
   Title:  Director

                                       4

Agreed as of the date first above written:

Morgan Stanley Bank

By /s/Daniel Twenge
   Title:  Vice President

                                       4

Agreed as of the date first above written:

THE NORTHERN TRUST COMPANY

By /s/Thomas E. Bernhardt
   Title:  Vice President

                                       4

Agreed as of the date first above written:

SANPAOLO IMI SpA

By /s/Carlo Persico
   Title:  CEO for the Americas

By /s/Luca Sacchi
     Title:  Vice President

                                       4

Agreed as of the date first above written:

SOCIETE GENERALE

By /s/Anne Marie Dumortier
   Title:  Vice President

                                       4

Agreed as of the date first above written:

SUNTRUST BANK

By /s/William C. Humphries
   Title:  Managing Director

                                       4

Agreed as of the date first above written:

UNIZAN BANK NATIONAL ASSOCIATION

By /s/
   Title:   Vice President

                                       4

Agreed as of the date first above written:

U.S. Bank, N.A.

By /s/
   Title:  Vice President

                                       4

Agreed as of the date first above written:

Wachovia Bank, N.A.

By /s/Nathan R. Rantala
   Title:  Vice PresidentEXHIBIT 10.1

                                      January 1, 2003 (revised January 31, 2005)

                              THE TIMKEN COMPANY
                          MANAGEMENT PERFORMANCE PLAN

Purpose

The purpose of The Timken Company (the "Company") Management Performance Plan
(the "Plan") is to promote the profitable growth of the Company by:

 *  Providing rewards for achieving increasing levels of return on capital.

 *  Recognizing corporate, business unit and individual performance achievement.

 *  Attracting, motivating and retaining superior executive talent.

Administration

It is the responsibility of senior management of the Company to execute the
provisions of the Plan.  Based on senior management recommendations, the
Compensation Committee (the "Committee") approves financial goals,
participation, target bonus awards, actual bonus awards, timing of payment and
other actions necessary to the administration of the Plan.

Participation

The participant group includes Company executive officers and other key
employees of the Company and its subsidiaries in positions assigned to Grades 7
or higher based on the Company's job evaluation process.

Bonus Opportunity

Each position is assigned a target bonus expressed as a percentage of annual
base salary.  The targets are based on market data for companies that are
similar for compensation purposes, including companies of similar size and
similar industries.  The targets are reviewed annually by management, and the
Committee will approve all target bonuses for officers.

The full target bonus opportunity represents an appropriate bonus award if
performance standards are met for Corporate, Business Unit and Individual
results.

Bonus funds for the three components-Corporate, Business Unit and Individual-
will be developed independently based on performance achievement versus the
goal(s) for each component.  The actual value of each component can range from
0% to 200% of target based on performance.

                                                                               1

For most participants, the total bonus will be the sum of the amounts for
Corporate, Business Unit and Individual performance.  In general, the more
senior participants will have greater weight placed on corporate results, while
other participants will have a greater weight placed on business unit and
individual performance results.

The allocations to corporate, business unit and individual performance will be
reviewed annually and changes to the allocations will be determined by senior
management.

Performance Measures

Corporate/Business Unit Components

The primary Corporate and Business Unit performance measure is Return on
Invested Capital, one measure of which is Earnings Before Interest and Taxes
(EBIT) divided by Beginning Invested Capital (BIC).

At the beginning of each year, the Committee will specify the EBIT/BIC and other
financial or non-financial performance measures to be used to evaluate Corporate
and Business Unit performance for the coming year.  Potential performance
measures include, but are not limited to:

     *    Cash flow (including free cash flow)
     *    Continuous improvement
     *    Cost of capital
     *    Customer service
     *    Debt reduction
     *    Earnings growth (including earnings per share and earnings before
          interest and taxes)
     *    Financial performance exceeding that of peer/competitor companies
     *    Improvement of shareholder return
     *    Inventory management
     *    Net income
     *    Productivity improvement
     *    Profit after taxes
     *    Quality
     *    Recruitment and development of excellent associates with emphasis on
          diversity
     *    Reduction of fixed costs
     *    Return on assets
     *    Return on equity
     *    Return on invested capital (EBIT/BIC)
     *    Sales from new products
     *    Sales growth
     *    Successful start-up of new facility
     *    Successful acquisition/divestiture
     *    Working Capital

                                                                               2

For the Corporate, Business Unit and Individual components of the Plan, the size
of the award will be determined by the degree to which targets are achieved for
each measure within that component.  Awards for corporate performance that falls
between threshold, target and maximum will be interpolated.

If the Committee determines that a change in the business, operations, corporate
structure or capital structure of the Corporation, the manner in which it
conducts business or other events or circumstances render the performance
objectives to be unsuitable, the Committee may modify such performance
objectives or the related minimum acceptable level of achievement, in whole or
in part, as the Committee deems appropriate.

Individual Component

Individual performance goals will be established for each participant consistent
with the Company's performance management process.  The participant's supervisor
will assess the participant's performance against these goals and make a
determination of the amount of bonus to be earned for the individual component
of the Plan.  While the value of the individual component can range from 0% to
200% of target for a specific individual, the sum of individual award components
for all participants must not exceed 100% of the final individual fund.

Award Determination

A participant's bonus award will be determined by adding the value of each of
the applicable components (corporate, business unit, individual) once
performance is considered.  The sum of all participant bonus determinations will
equal the Total Fund.

Minimum Performance Requirement

For a payment to be earned for any portion of this Plan, the Company must report
a predetermined net profit for the Plan year after taking into account all Plan
payments for that year.  Once the predetermined profit level is achieved, the
Plan will function as outlined.  If the predetermined profit level is not
achieved, no awards will be paid under the Corporate, Business Unit or
Individual component of the Plan.

Bonus Payments

At the end of the year, senior management will determine whether Corporate
performance has exceeded the minimum performance requirement for paying
bonuses.  Senior management will recommend to the Committee the Total Fund
based on its assessment of performance achievement at Corporate, Business Unit
and individual levels.  The Committee may make further adjustments to such
management recommendations based on its assessment of financial and non-
financial performance.

Awards under the Plan will be paid in cash as soon as practicable after the
Committee's determination of the award payments, but in no event later than two
and one-half months after the close of the last fiscal year of the Company to
which the award relates.

                                                                               3

One hundred percent of awards under the Plan will be included in pension
earnings and earnings for the purpose of calculating 401(k) plan benefits.
Awards will not be included for purposes of any other employee benefits plans,
except long-term disability.

mpplan02revised01-31-2005.doc

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