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                                                                [EXECUTION COPY]

                                FOURTH AMENDMENT
                                       TO
                      SHORT TERM REVOLVING CREDIT AGREEMENT

      This FOURTH AMENDMENT TO SHORT TERM REVOLVING CREDIT AGREEMENT, dated as
of January 15, 1997 (this "Amendatory Agreement"), is among HANDY & HARMAN, a
New York corporation (the "Borrower"), certain financial institutions
signatories hereto (the "Lenders"), THE BANK OF NOVA SCOTIA, THE CHASE MANHATTAN
BANK (formerly known as Chemical Bank) and THE BANK OF NEW YORK, as the
co-agents (collectively referred to herein as the "Co-Agents"), and THE BANK OF
NOVA SCOTIA, as administrative agent (the "Administrative Agent").

                              W I T N E S S E T H:

      WHEREAS, the Borrower, the Lenders, the Co-Agents and the Administrative
Agent are parties to a Short Term Revolving Credit Agreement, dated as of
September 28, 1994 (as amended or otherwise modified to the date hereof, the
"Existing Credit Agreement"); and

      WHEREAS, the parties hereto have agreed, subject to the conditions and
terms hereinafter set forth, to amend the Existing Credit Agreement in certain
respects as herein provided (the Existing Credit Agreement, as so amended by
this Amendatory Agreement, being referred to as the "Credit Agreement");

      NOW, THEREFORE, in consideration of the agreements herein contained, the
parties hereto agree as follows:

                                     PART I

                                   DEFINITIONS

      SUBPART 1.1. Certain Definitions. The following terms (whether or not
underscored) when used in this Amendatory Agreement shall have the following
meanings (such meanings to be equally applicable to the singular and plural form
thereof):

      "Administrative Agent" is defined in the preamble.

      "Amendatory Agreement" is defined in the preamble.

      "Borrower" is defined in the preamble.

      "Co-Agents" is defined in the preamble.

      "Credit Agreement" is defined in the second recital.
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      "Existing Credit Agreement" is defined in the first recital.

      "Fourth Amendment Effective Date" is defined in Subpart 3.1.

      "Lenders" is defined in the preamble.

      SUBPART 1.2. Other Definitions. Terms for which meanings are provided in
the Existing Credit Agreement are, unless otherwise defined herein or the
context otherwise requires, used in this Amendatory Agreement with such
meanings.


                                     PART II

                                AMENDMENTS TO THE
                            EXISTING CREDIT AGREEMENT

      Effective on (and subject to the occurrence of) the Fourth Amendment
Effective Date, the Existing Credit Agreement is hereby amended in accordance
with this Part II; except as so amended, the Existing Credit Agreement shall
continue in full force and
effect.

      SUBPART 2.1. Amendments to Article I. Article I of the Existing Credit
Agreement is hereby amended in accordance with Subparts 2.1.1 through 2.1.2.

      SUBPART 2.1.1. Section 1.1 of the Existing Credit Agreement is hereby
amended by inserting the following definitions in such Section in the
appropriate alphabetical sequence:

            "Fourth Amendment" means the Fourth Amendment, dated as of January
      15, 1997, to this Agreement among the Borrower, the Lenders party thereto,
      the Co-Agents and the Administrative Agent.

            "Fourth Amendment Effective Date" means the Fourth Amendment
      Effective Date as defined in Subpart 3.1 of the Fourth Amendment.

            "Olympic Transaction" means the purchase of all of the outstanding
      stock of Olympic Manufacturing Group Inc., as more specifically described
      in the letter, dated January 13, 1997, from the Borrower to the Lenders,
      the Co-Agents and the Administrative Agent.

      SUBPART 2.1.2. Section 1.1 of the Existing Credit Agreement is further
amended by amending clause (b)(i) of the definition of "Consolidated Tangible
Net Worth" in its entirety to read as follows:


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            "(i) treasury stock (excluding the amount, not to exceed
      $45,000,000, of cash consideration expended for the repurchase and/or
      redemption of the Borrower's outstanding common stock in accordance with
      the 1996 Transaction that results in an increase in such treasury stock),
      subscribed but unissued stock, unamortized debt discount and expense,
      goodwill (excluding goodwill in an amount not to exceed $45,000,000
      associated with the Olympic Transaction), trademarks, trade names, patents
      and other intangible assets (but not deferred charges) of the Borrower,
      and"

      SUBPART 2.2. Amendment to Article VII. Clause (c) of Section 7.2.11 of the
Existing Credit Agreement is hereby amended in its entirety to read as follows:

                  "(c) such sale, transfer, lease, contribution or conveyance is
            (i) in connection with the 1996 Transaction (provided, that the
            Market Value of the gold sold or otherwise disposed of in connection
            therewith shall not exceed an aggregate amount equal to
            $45,000,000), (ii) in connection with the sale or disposition of
            precious metal having an aggregate Market Value in a maximum amount
            not to exceed $55,000,000 but only to the extent the proceeds are
            used to finance the Olympic Transaction, or (iii) if not in the
            ordinary course of business, or not otherwise permitted hereunder,
            the assets are sold for fair value (as determined by the Board of
            Directors of the Borrower or the Subsidiary owning such assets) and
            the commitments of the Lenders under the Long Term Credit Agreement
            are reduced by an amount equal to the Net Disposition Proceeds (as
            defined in the Long Term Credit Agreement) of such sale, transfer,
            lease, contribution or conveyance; or".

      SUBPART 2.3. Amendment to Exhibit E. Attachment 1 of Exhibit E (Compliance
Certificate) to the Existing Credit Agreement is hereby amended in its entirety
to read as set forth
on Exhibit A hereto.

                                    PART III

                           CONDITIONS TO EFFECTIVENESS

      SUBPART 3.1. Fourth Amendment Effective Date. This Amendatory Agreement
shall become effective on the date first set forth above (the "Fourth Amendment
Effective Date") when each of


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the conditions set forth in this Subpart 3.1 shall have been satisfied.

      SUBPART 3.1.1. Execution of Counterparts. The Administrative Agent shall
have received counterparts of this Amendatory Agreement, duly executed on behalf
of the Borrower and the Required Lenders.

      SUBPART 3.1.2. Long Term Credit Agreement Amendment No. 4. The conditions
to the effectiveness of the Fourth Amendment to the Long Term Credit Agreement,
also dated as of the date hereof ("LT Amendment No. 4") (other than the
effectiveness of this Amendatory Agreement) shall have been satisfied and such
LT Amendment No. 4 shall, concurrently with the effectiveness of this Amendatory
Agreement, have been declared effective by the Administrative Agent.

      SUBPART 3.1.3. Legal Details, etc. All documents executed or submitted
pursuant hereto shall be satisfactory in form and substance to the
Administrative Agent and its counsel. The Administrative Agent and its counsel
shall have received all information and such counterpart originals or such
certified or other copies of such materials, as the Administrative Agent or its
counsel may reasonably request, and all legal matters incident to the
transactions contemplated by this Amendatory Agreement shall be satisfactory to
the Administrative Agent and its counsel.

                                     PART IV

                                  MISCELLANEOUS

      SUBPART 4.1. Cross-References. References in this Amendatory Agreement to
any Part or Subpart are, unless otherwise specified or otherwise required by the
context, to such Part or Subpart of this Amendatory Agreement.

      SUBPART 4.2. Loan Document Pursuant to Existing Credit Agreement. This
Amendatory Agreement is a Loan Document executed pursuant to the Existing Credit
Agreement and shall be construed, administered and applied in accordance with
all of the terms and provisions of the Existing Credit Agreement.

      SUBPART 4.3. Successors and Assigns. This Amendatory Agreement shall be
binding upon and inure to the benefit of the parties hereto and their respective
successors and assigns.

      SUBPART 4.4. Counterparts. This Amendatory Agreement may be executed by
the parties hereto in several counterparts, each


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of which when executed and delivered shall be deemed to be an original and all
of which shall constitute together but one and the same agreement.

      SUBPART 4.5. Representations, No Default, etc. As of the date of
effectiveness of this Amendatory Agreement, the Borrower hereby represents and
warrants to the Agents and the Lenders that

            (a) the representations and warranties set forth in Article VI of
      the Existing Credit Agreement (excluding, however, those contained in
      Section 6.7 thereof) are true and correct in all material respects (unless
      stated to relate solely to an earlier date, in which case such
      representations and warranties were true and correct as of such earlier
      date);

            (b) except as disclosed by the Borrower to the Administrative Agent
      and the Lenders pursuant to Section 6.7 of the Existing Credit Agreement,

                  (i) no litigation, arbitration or governmental investigation
            or proceeding is pending or, to the knowledge of the Borrower,
            threatened against the Borrower or any of its Subsidiaries which may
            reasonably be expected to materially adversely affect the
            Borrower's, or the Borrower and its Subsidiaries' taken as a whole,
            financial condition, operations, assets, businesses, properties or
            prospects or which purports to affect the legality, validity or
            enforceability of the Existing Credit Agreement, the Notes or any
            other Loan Document; and

                  (ii) no development has occurred in any litigation,
            arbitration or governmental investigation or proceeding disclosed
            pursuant to Section 6.7 of the Existing Credit Agreement which may
            reasonably be expected to materially adversely affect the financial
            condition, operations, assets, businesses, properties or prospects
            of the Borrower or the Borrower and its Subsidiaries, taken as a
            whole; and

            (c) no Default has occurred and is continuing.

      SUBPART 4.6. Limited Waiver, etc. No amendment, waiver or approval by the
Agents or any Lender under this Amendatory Agreement shall, except as may be
otherwise stated in this Amendatory Agreement, be applicable to subsequent
transactions. No amendment, waiver or approval hereunder shall require any
similar or dissimilar amendment, waiver or approval to be granted after the date
hereof, and except as expressly modified by this Amendatory Agreement, the
provisions of the Existing Credit


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Agreement shall remain in full force and effect, without amendment or other
modification.

      SUBPART 4.7. Governing Law. THIS AMENDATORY AGREEMENT SHALL BE GOVERNED BY
AND CONSTRUED IN ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE OF NEW YORK.


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


                                    HANDY & HARMAN


                                    By_________________________________________
                                      Title:


                                    THE BANK OF NOVA SCOTIA,
                                      in its capacity as Administrative
                                      Agent, Co-Agent and Lender


                                    By_________________________________________
                                      Title:


                                    THE BANK OF NEW YORK,
                                      in its capacity as
                                        Co-Agent and Lender


                                    By_________________________________________
                                      Title:


                                    THE CHASE MANHATTAN BANK (formerly known
                                      as Chemical Bank), in its capacity as
                                      Co-Agent and Lender


                                    By_________________________________________
                                      Title:


                                 FLEET PRECIOUS METALS INC.


                                    By_________________________________________
                                      Title:


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                                    THE FIRST NATIONAL BANK OF CHICAGO
                                     (formerly known as NBD Bank)


                                    By_________________________________________
                                      Title:


                                    BANK OF TOKYO - MITSUBISHI TRUST COMPANY


                                    By_________________________________________
                                      Title:


                                    LTCB TRUST COMPANY


                                    By_________________________________________
                                      Title:


                                    CREDIT LYONNAIS NEW YORK BRANCH


                                    By_________________________________________
                                      Title:


                                    CREDIT LYONNAIS CAYMAN ISLAND BRANCH


                                    By_________________________________________
                                      Title:


                                    THE SUMITOMO BANK, LIMITED


                                    By_________________________________________
                                      Title:


                                    By_________________________________________
                                      Title:


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                                    THE FUJI BANK, LIMITED,
                                      NEW YORK BRANCH


                                    By_________________________________________
                                      Title:


                                    ABN AMRO BANK N.V. NEW YORK BRANCH


                                    By_________________________________________
                                      Title:


                                    By_________________________________________
                                      Title:


                                    COMERICA BANK


                                    By_________________________________________
                                     Title:


                                    YASUDA TRUST & BANKING CO., LTD.
                                       NEW YORK BRANCH


                                    By_________________________________________
                                      Title:


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                                                                       EXHIBIT A
                                                             TO FOURTH AMENDMENT

                                                                    ATTACHMENT 1
                                            (to __/__/__ Compliance Certificate)

                    ADJUSTED CONSOLIDATED TANGIBLE NET WORTH
                               (________ __, 19__)

      Adjusted Consolidated
      Tangible Net Worth:

      A.    The par value (or value stated on
            the books of the Borrower) of the
            capital stock of all classes of the
            Borrower............................................... $_________

      B.    The amount of the consolidated
            surplus, whether capital or earned,
            of the Borrower and its
            and its Subsidiaries................................... $_________

      C.    The sum (or difference, in the
            case of a surplus deficit in
            Item 1.B) of Items 1.A and 1.B......................... $_________

      D.    The aggregate amount of treasury
            stock (excluding the amount, not to
            exceed $45,000,000, of cash
            consideration expended for the
            repurchase and/or redemption of the
            Borrower's outstanding common stock
            in accordance with the 1996
            Transaction that results in an
            increase in such treasury stock),
            subscribed but unissued stock,
            unamortized debt discount
            and expense, goodwill (excluding
            goodwill in an amount not to exceed
            $45,000,000 associated with the
            Olympic Transaction), trademarks,
            trade names, patents and other
            intangible assets (but not deferred
            charges), of the Borrower and
            its Subsidiaries....................................... $_________

      E.    The aggregate amount of all write-
            ups in the book value of any assets
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            owned by the Borrower or its
            Subsidiaries subsequent to March 16,
            1992, other than write-ups of assets
            (and assets of Subsidiaries) acquired
            by the Borrower and/or its
            Subsidiaries (exclusive of goodwill)
            that are made in connection with the
            acquisition thereof.................................... $_________

      F.    Sum of Items 1.D through 1.E........................... $_________

      G.    Consolidated Tangible Net Worth:
            The excess of Item 1.C over Item 1.F................... $_________

      H.    40% of the excess of the Market
            Value of the Borrower's and its
            Subsidiaries' owned precious metal
            holdings over the LIFO cost of such
            holdings as set forth in the
            Borrower's most recent consolidated
            financial statements delivered
            pursuant to clause (a) or clause
            (b) of Section 7.1.1 of the
            Credit Agreement......................................  $_________

      I.    ADJUSTED CONSOLIDATED TANGIBLE NET WORTH:
            The sum of Items 1.G and 1.H..........................  $_________

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