Document:

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                                                                    Exhibit 10.6

                                TABLE OF CONTENTS

                                      LEASE

                            RIDILLA-DELMONT, LANDLORD

                    ADVANCED METALLURGY INCORPORATED, TENANT

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ARTICLE 1.     DEMISE, DESCRIPTION, USE AND TERM

      Section 1.01.     Demised and Description.............................       2
      Section 1.02.     Use.................................................       2
      Section 1.03.     Term................................................       2

ARTICLE 2.     RENT, COMMENCEMENT DATE, TERMINATION DATE AND POSSESSION PRIOR
               TO COMMENCEMENT DATE

      Section 2.01.     Rent For Leased Premises During Term................       2
      Section 2.02.     Commencement Date and Termination Date..............       3
      Section 2.03.     Possession Prior to Commencement Date...............       3

ARTICLE 3.     LANDLORD'S WARRANTIES, CONDITiON OF LEASED PREMISES, TENANT'S
               CONSTRUCTION

      Section 3.01.     Landlord's Warranty.................................       3
      Section 3.02.     Condition of Leased Premises........................       3
      Section 3.03.     Agreement as to Condition...........................       4
      Section 3.04.     Tenant's Construction...............................       4
      Section 3.05.     Conditions to Tenant's Construction.................       4
      Section 3.06.     Responsibility for Payment..........................       5
      Section 3.07.     Continuing Covenant.................................       6
      Section 3.08.     No Mechanics' Lien Permitted........................       6

ARTICLE 4.     TAXES AND ASSESSMENTS

      Section 4.01.     Payment by Tenant...................................       6
      Section 4.02.     Hold Harmless.......................................       7
      Section 4.03.     Proration of Taxes for First Year and Last Year of
                        Term................................................       7
      Section 4.04.     Time and Method of Payment..........................       7
      Section 4.05.     Payment by Landlord on Tenant's Default.............       8
      Section 4.06.     Right to Contest, Levy, Assessment or Charge........       8

ARTICLE 5.     INSURANCE AND FIRE LOSS

      Section 5.01.     Tenant's Obligation.................................       9
      Section 5.02.     Additional Insured..................................       9
      Section 5.03.     Proof of Coverage...................................      10
      Section 5.04.     Protection Against Cancellation.....................      10
      Section 5.05.     Proceeds............................................      10
      Section 5.06.     Fire and Casualty Damage............................      11
      Section 5.07.     Tenant's Property...................................      13

ARTICLE 6.     UTILITIES

      Section 6.01.     Tenant's Responsibility.............................      13

ARTICLE 7.     WASTE AND NUISANCE

      Section 7.01.     Tenant's Responsibility.............................      14
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ARTICLE 8.     MAINTENANCE AND REPAIRS; INDEMNITY AND HOLD HARMLESS FROM
               HAZARDOUS WASTE

      Section 8.01.     Landlord's Responsibility...........................      14
      Section 8.02.     Tenant's Responsibility.............................      14
      Section 8.03.     Parking Area........................................      15
      Section 8.04.     Failure to Repair, Right to Cure....................      15
      Section 8.05.     Indemnity and Hold Harmless from Hazardous Waste....      16

ARTICLE 9.     ALTERATIONS, IMPROVEMENTS AND FIXTURES

      Section 9.01.     Trade Fixtures and Equipment........................      17
      Section 9.02.     Non-Trade Fixtures..................................      18
      Section 9.03.     Landlord's Waiver...................................      19
      Section 9.04.     Removal on Termination..............................      19

ARTICLE 10.    QUIET POSSESSION

      Section 10.01.    Covenant of Quiet Possession........................      20
      Section 10.02.    Subordination, Attornment and Non-Disturbance.......      20

ARTICLE 11.    TERMINATION, SURRENDER OF PREMISES AND HOLDING OVER

      Section 11.01.    Termination.........................................      21
      Section 11.02.    Surrender and Removal of Property...................      21

ARTICLE 12.    CONDEMNATION

      Section 12.01.    All of Premises.....................................      22
      Section 12.02.    Partial.............................................      22
      Section 12.03.    Damages.............................................      23

ARTICLE 13.    DEFAULTS AND REMEDIES

      Section 13.01.    Penalty for Delayed Payment.........................      23
      Section 13.02.    Default by Tenant...................................      24

ARTICLE 14.    INSPECTION BY LANDLORD

      Section 14.01.    Right of Inspection.................................      26

ARTICLE 15.    ADDITIONAL TENANT COVENANTS:

      Section 15.01.    Use of Leased Premises..............................      26
      Section 15.02.    No Nuisance.........................................      27
      Section 15.03.    Signs...............................................      28
      Section 15.04.    Continuing Covenants................................      28

ARTICLE 16.    ASSIGNMENT AND SUBLEASE

      Section 16.01.    Assignment and Subletting by Tenant.................      28
      Section 16.02.    Assignment by Landlord..............................      29

ARTICLE 17.    MISCELLANEOUS PROVISIONS

      Section 17.01.    Notices and Addresses...............................      29
      Section 17.02.    Reporting Requirement - Annual Reports..............      29
      Section 17.03.    Parties Bound.......................................      30
      Section 17.04.    Applicable Law......................................      30
      Section 17.05.    Legal Construction..................................      30
      Section 17.06.    Amendment...........................................      30
      Section 17.07.    Rights and Remedies Cumulative......................      30
      Section 17.08.    Waiver of Default...................................      30
      Section 17.09.    Time of Essence.....................................      30
      Section 17.10.    No Brokerage Commission.............................      31
      Section 17.11.    Security Guaranty...................................      31
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      Section 17.12.    Nonrecordability....................................      31
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EXHIBIT LIST

    EXHIBIT "A" - Description

    EXHIBIT "B" - Letter dated October 7, 1991 from Municipality of Murrysville

    EXHIBIT "C" - Guaranty and Suretyship Agreement

    EXHIBIT "D" - Memorandum of Lease
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                                 LEASE AGREEMENT

            THIS AGREEMENT OF LEASE, made and entered into this 15th day of
October, 1991, at Latrobe, Pennsylvania, by and between RIDILLA-DELMONT, a
Pennsylvania Limited Partnership, having its principal office and place of
business at P.O. Box 472, Latrobe, Pennsylvania 15650 (hereinafter "Landlord"),

                                    A

                                        N

                                               D

ADVANCED METALLURGY INCORPORATED, a Corporation, having an office and place of
business at 1028 East Smithfield Street, P.O. Box 91, McKeesport, Pennsylvania
15135-0091, and having an additional office in the Commonwealth of Pennsylvania
(after the Commencement Date of this Lease) at Murray Corporate Park,
Murrysville, Pennsylvania 15668 (hereinafter called ("Tenant").

            WHEREAS, Landlord owns a certain lot or parcel of land (hereinafter
"Land") situate in Municipality of Murrysville, Westmoreland County,
Pennsylvania, being more particularly described in Exhibit "A," attached hereto
and made a part hereof; and

            WHEREAS, Landlord has erected a building on the land containing
115,270 square feet more or less, comprised of warehouse and office space
(together hereinafter "Building") together with parking facilities, driveways
and other improvements to support the use of the Building (hereinafter "support
Facilities"); and

            WHEREAS, by these presents and this Lease Agreement (hereinafter
"Lease") Landlord intends to lease to Tenant and Tenant intends to lease from
Landlord the Land, Building and Support Facilities (together hereinafter "Leased
Premises") in accordance with the terms and conditions hereinafter set forth;

            NOW, THEREFORE, Landlord, for and in consideration of the rents,
covenants and agreements hereinafter contained on the part of the Tenant to be
paid, kept and performed does hereby lease and demise unto the Tenant and
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Tenant hereby takes and rents from Landlord the Leased Premises under the
following terms and conditions:

                  ARTICLE 1. DEMISE, DESCRIPTION, USE AND TERM

            SECTION 1.01. DEMISE AND DESCRIPTION: Landlord hereby leases unto
Tenant, and Tenant hereby leases from Landlord, the Leased Premises, as
heretofore defined herein.

            SECTION 1.02. USE: The Leased Premises shall be used by Tenant only
in accordance with those uses set forth hereafter in Article 15, and for no
other purpose.

            SECTION 1.03. TERM: The Term of the Lease shall be ten (l0) years
(hereinafter "Term") starting on the Commencement Date as defined hereafter at
Section 2.02 and terminating on the Termination Date as defined hereafter at
Section 2.02.

    ARTICLE 2. RENT, COMMENCEMENT DATE, TERMINATION DATE AND POSSESSION PRIOR
                              TO COMMENCEMENT DATE

            SECTION 2.01. RENT FOR LEASED PREMISES DURING TERM: Tenant agrees to
pay and shall pay Landlord at P. O. Box 472, Latrobe, Pennsylvania, or such
other place as Landlord shall designate from time to time in writing, as Rent
for the Leased Premises during the Term the total rent of $4,092,085.20, which
sum shall be payable without demand in equal monthly installments each in
advance on the first day of each calendar month starting with the Commencement
Date and continuing throughout the Term, as follows:

            A. For the first month through the sixtieth month, the total rent of
$1,988,407.80 (calculated on an annualized basis of $3.45 per square foot),
payable in monthly installments of $33,140.13.

            B. For the sixty-first month through the one hundred twentieth
month, the total rent of $2,103,677.40, (calculated on an annualized basis of
$3.65 per square foot), payable in monthly installments of $35,061.29.

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            SECTION 2.02. COMMENCEMENT DATE AND TERMINATION DATE: The
Commencement Date (hereinafter "Commencement Date") shall be 12:01 A.M. on
November 1, 1991, and the Termination Date (hereinafter "Termination Date")
shall be 11:59 P.M. on October 31, 2001.

            SECTION 2.03. POSSESSION PRIOR TO COMMENCEMENT DATE: Tenant shall be
entitled to possession prior to the Commencement Date listed above for purpose
of commencing Tenant's construction responsibilities as are hereinafter set
forth in Article 3.

    ARTICLE 3. LANDLORD'S WARRANTIES, CONDITION OF LEASED PREMISES, TENANT'S
                                  CONSTRUCTION

            SECTION 3.01. LANDLORD'S WARRANTY: Landlord warrants as follows:

            A. Zoning Compliance - That as of the date hereof, the Leased
Premises are zoned M-1, and, the proposed use as represented by Tenant is a
permitted use in the M-1 zone, all as set forth in letter dated October 7, 1991,
as issued by the Municipality of Murrysville, a copy of which is attached as
Exhibit "B".

            B. Construction in Accordance with Plans and Specifications -
Landlord warrants that the Building and Support Facilities, including the
parking area have been constructed in accordance with the Plans and
Specifications, a full and complete copy of which have previously been delivered
by Landlord unto Tenant.

            C. No Major Structural Defects - As of the date of this Lease,
neither the Building nor the Support Facilities have any major structural
defects.

            SECTION 3.02. CONDITION OF LEASED PREMISES: Other than the warranty
of Landlord listed above in Section 3.01, Tenant agrees and admits that no
representation as to the condition or repair of the Leased Premises has been
made by the Landlord or any agent of the Landlord; and likewise

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agrees and admits that no agreement or promise to remodel, alter, repair or
improve the Leased Premises including all equipment and appurtenances thereon
either before or after the execution of this Lease, it has been made by Landlord
or any agent of Landlord.

            SECTION 3.03. AGREEMENT AS TO CONDITION: Landlord and Tenant further
agree that a written document shall be executed by each of them after the date
of this Lease, which written document shall reference the actual condition of
the Leased Premises, and which shall be determative and conclusive as to the
condition of the Leased Premises as of the date of this Lease, and shall
determine that condition of the Leased Premises that Tenant will be obligated to
restore the Leased Premises to as of the Termination Date.

            SECTION 3.04. TENANTS CONSTRUCTION: Tenant shall be responsible for
all remodeling, retrofitting, construction, fabrication or installation of (a)
all Tenant improvements required by Tenant to permit; permit Tenant to use the
Leased Premises for those purposes otherwise permitted herein as listed in
Article 15; (b) the fixturing and equipping of the Leased Premises in accordance
with Tenant's standards; (c) all Building signs, letters and logos; (d) the
construction and installation of any and all manufacturing or other equipment;
and (e) any and all maintenance and remodeling undertaken by Tenant after the
Commencement Date and throughout the Term.

            SECTION 3.05. CONDITIONS TO TENANT'S CONSTRUCTION: Notwithstanding
the provisions of Section 3.04 above, prior to Tenant's undertaking any of the
construction, installation or fabrication permitted under Section 3.04, Tenant
shall submit plans and specifications to Landlord for Landlord's approval in
accordance with the provisions of the last paragraph of this Section 3.05, and
shall also use its best efforts to accomplish the following: (a) obtain all
permits from any federal, state or local municipality, agency or regulatory body
having jurisdiction over the

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Leased Premises, or the operation of Tenant's business on the Leased Premises,
and submit evidence of the obtaining of such permits unto Landlord; and (b)
supply Landlord with written evidence that Tenant's construction and the
proposed use to be made by Tenant of the Leased Premises is in full compliance
with any and all ordinances, rules and regulations in effect in the Municipality
of Murrysville as the same relate to matters of zoning, subdivision (if
applicable), building or remodeling permits, sanitary and other municipal waste,
hazardous waste (if applicable), surface water run off (if applicable),
emissions into the atmosphere of any nature, or any other matters pertaining to
Tenant's use of the Leased Premises or any environmental impact resulting
therefrom. In the event Tenant requests Landlord to join in any permit
application by reason of Landlord's ownership of the Leased Premises, the
Landlord agrees to do so, provided that the responsibility for obtaining such
permits shall remain with Tenant, and Tenant shall hold harmless Landlord from
any and all costs or liability resulting from Landlord's cooperation hereunder.

             As set forth heretofore, prior to the commencement of any Tenant
improvements, Tenant shall submit plans and specifications for such improvements
to Landlord which shall be made part of Landlord's permanent records. No Tenant
improvements may be commenced on the Leased Premises until Tenant has received
Landlord's approval, which approval shall not be unreasonably withheld, but may
be withheld in the event that the submitted plans are not in accordance with
recognized standards in the construction industry (whether or not such standards
are legally binding in the Municipality of Murrysville).

            SECTION 3.06. RESPONSIBILITY FOR PAYMENT: Tenant shall be
responsible for payment of any and all municipal or other fees incurred by
Tenant for any permits required by Tenant for either Tenant's construction or
Tenant's uses of the Leased Premises; as set forth in Article 15 hereafter;

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and which permits shall be acquired by Tenant in accordance with all local,
state or federal rules and regulations concerning the issuance and payment
thereof; and Tenant shall pay such fees as are required for any permits in a
timely matter, together with any other monetary obligations resulting from
Tenant's construction or Tenant's occupancy. In this regard, Tenant shall hold
harmless and indemnify Landlord from any and all legal responsibility concerning
the issuance of such permits, and which indemnification shall extend to any and
all attorneys or other fees incurred by Landlord in defending any suit brought
on account thereof.

            SECTION 3.07. CONTINUING COVENANT: The obligations of Tenant
hereunder shall be binding for the initial construction contemplated by Tenant
hereunder, and shall constitute continuing covenants and obligations for any
additional construction undertaken by Tenant on the Leased Premises throughout
the Term.

            SECTION 3.08. NO MECHANICS' LIEN PERMITTED: Tenant shall not do or
suffer anything to be done whereby the Leased Premises may be encumbered by a
Mechanics' Lien, and shall, whenever and as often as any Mechanics' Lien is
filed against the Leased Premises purporting to be for labor or material
furnished or to be furnished to Tenant, discharge the same of record within
thirty (30) days after the date of filing. Notice is hereby given that Landlord
shall not he liable for any labor or materials furnished or to be furnished to
Tenant upon credit, and that no Mechanic's, or other lien or any such Labor or
materials shall attach to or affect the reversionary or other estate or interest
of Landlord in and to the Leased Premises.

                        ARTICLE 4. TAXES AND ASSESSMENTS

            SECTION 4.01. PAYMENT BY TENANT: Throughout the Term, Tenant shall
be responsible for and discharge all real estate taxes, general and special
assessments which may be levied on or assessed against the Leased

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Premises and all improvements and other property located thereon, whether
belonging to Tenant or Landlord, and to which either of them may become liable
in relation thereto. Notwithstanding anything to the contrary contained in the
preceding sentence, any assessments for Municipal improvements shall be pro
rated between the Landlord and Tenant based on the useful life of the
improvement (with Tenant's responsibility to include the Term remaining at the
time of the assessment); together with any taxes (other than Pennsylvania and
Federal Income Taxes) which may be levied against the receipts by Landlord of
any payments due from Tenant hereunder, or which otherwise result from
Landlord's ownership of the Leased Premises.

            SECTION 4.02. HOLD HARMLESS: Tenant agrees to and shall protect and
hold harmless Landlord and the Leased Premises from liability for any and all
assessments and charges for which it is otherwise liable, together with any
interest, penalties or other sums thereby imposed, and from any sale or other
proceedings to enforce payment thereof.

            SECTION 4.03. PRORATION OF TAXES FOR FIRST YEAR AND LAST YEAR OF
TERM: Tenant's obligation to pay for taxes shall commence on the Commencement
Date, and Tenant shall be responsible for two-twelfths (2/12ths) of the total
taxes levied for 1991. The taxes for the last year of the term shall be prorated
between Landlord and Tenant on the basis of the ratio between the time the
Leased Premises are leased to Tenant and the time the Leased Premises are not so
leased. Such proration shall be on a calendar year basis, whatever the fiscal
year of the taxing agency which levies the tax.

            SECTION 4.04. TIME AND METHOD OF PAYMENT: Tenant's share of the 1991
taxes shall be due and payable on the Commencement Date. Thereafter, upon
receipt of any tax bill, Landlord shall immediately forward a copy of the same
to Tenant, which shall cause a check or checks to be issued to Landlord for
payment of the tax at the discounted rate, and shall forward the

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payment of the same to Landlord in sufficient time that Landlord can then pay
the taxes at the discounted rate set forth in the bill. After payment of the
same, Landlord shall forward to Tenant a copy of the receipted tax bill.

            SECTION 4.05. PAYMENT BY LANDLORD ON TENANT'S DEFAULT: If Tenant
fails to pay such taxes, assessments or charges or fails to give written notice
of any payment thereof as herein provided, Landlord may at its option and any
time after such taxes become due, after notice to Tenant, pay such taxes,
assessments or charges together with all penalties and interest which may have
been added because of Tenants delinquency or default, and may likewise redeem
the Leased Premises or any part thereof, or the Building or improvements situate
thereon, from a tax sale or sales. Any such amount so paid by Landlord shall
become immediately due and payable as additional rent by Tenant to Landlord,
together with interest thereon at the Prime Interest Rate published in the Wall
Street Journal from time to time from the date of payment by Landlord until paid
by Tenant. Any such payment by Landlord shall not be deemed to be a waiver of
any other rights which Landlord may have under the provisions of this Lease or
as provided by law.

            SECTION 4.06. RIGHT TO CONTEST, LEVY, ASSESSMENT OR CHARGE: Tenant
shall have the privilege, acting in the name of the Landlord, but at the sole
cost and expense of Tenant, before delinquency occurs, of protesting,
contesting, objecting to, or opposing the legality or amount of any such
assessments or public charges to be paid by Tenant hereunder. If Tenant shall,
in good faith, deem the same to be illegal or excessive, and in the event of any
such contest, it may to the extent provided by law defer payment of any such
assessment or charge so long as the legality or the amount is contested in good
faith; provided, however, that if at any time payment of the whole or any part
thereof shall become necessary in order to prevent the termination, by sale or
otherwise, of the right of redemption of any property affected thereby, or to
prevent eviction of either Landlord or

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Tenant because of nonpayment thereof, Tenant shall pay the same in order to
prevent such termination of the right of redemption or such eviction.

                       ARTICLE 5. INSURANCE AND FIRE LOSS

            SECTION 5.01. TENANT'S OBLIGATION: Tenant agrees to and shall, prior
to the date that Tenant takes occupancy, secure from a good and responsible
company or companies licensed to do business in the Commonwealth of Pennsylvania
and which has a minimum rating of A, as rated by Best's Rating Service, and
maintain during the Term and the Extended Term, the following insurance
coverage:

            A. Fire and extended coverage insurance in an amount not less than
$3,500,000.00, with said amount to be increased at the lesser of (a) three (3)
percent per annum, or (b) that rate of increase published by the insurance
companies in Allegheny County as the recommended incremental increase for
properties of like kind; with the increase to become effective on an annual
basis commencing with the year following the third (3rd) anniversary of the
Commencement Date and continuing throughout the Term. The coverage shall be in
addition to any insurance Tenant maintains on its own property in the Leased
Premises.

            B. Public liability insurance in the minimum amount of $5,000,000.00
per loss from an accident resulting in bodily injury to or death of persons or
destruction of property.

            C. Workman's Compensation Insurance in an amount not less than the
minimum amount required under Pennsylvania Law.

            D. Business Interruption Insurance sufficient for Tenant to pay the
rents otherwise due under 5.06D hereafter.

            SECTION 5.02. ADDITIONAL INSURED: Tenant agrees that additional
insureds shall be named on the aforementioned policies of insurance as follows:

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            A. Under the fire and extended coverage insurance required under
Section 5.01A, Tenant, Landlord, P. Richard Ridilla, John M. Ridilla and the
Ridilla-Delmont Trust shall all be named as their interests may appear, and the
Landlord's Lender (if any) shall be named on a standard mortgagee clause.

            B. Under the public liability insurance required under Section
5.01B, Tenant, Landlord, P. Richard Ridilla, John M. Ridilla, and the
Ridilla-Delmont Trust shall all be named as their interests may appear.

            SECTION 5.03. PROOF OF COVERAGE: Upon written notice, Tenant agrees
to provide Landlord or any other party for which coverage is required hereunder
a certificate of coverage.

            SECTION 5.04. PROTECTION AGAINST CANCELLATION: All policies of
insurance shall contain the provision that no policy shall be canceled or
altered without ten (10) days prior written notice to any of the named parties
listed thereon.

            SECTION 5.05. PROCEEDS: As between Landlord and Tenant, upon the
occurrence of an event for which proceeds are payable under the fire and
extended coverage policy, Landlord shall be entitled to receive all proceeds
other than those listed hereinafter in Section 5.07, and in any event not less
than the cost of repair and/or rebuilding the Building or any other portion of
the Leased Premises, whether or not the same are rebuilt under Section 5.06A
hereafter. Notwithstanding anything contained herein to the contrary, in the
event of damage to the Building, and the cost to restore the Building will be
less than $5,000, then Tenant shall have the right to receive such proceeds, and
shall be required to repair or rebuild the same with reasonable diligence.

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            SECTION 5.06. FIRE AND CASUALTY DAMAGE: If the Building and/or
Support Facilities should be damaged or destroyed by fire, flood or other
casualty, Tenant shall give immediate written notice thereof to Landlord.

            A. If the Building and/or Support Facilities or any part thereof
should be damaged or destroyed by fire, flood or other casualty, Landlord shall,
except as otherwise provided herein, repair and/or rebuild the same with
reasonable diligence at Landlord's sole cost and expense. Landlord's obligation
hereunder shall be limited to the replacement, restoration and repair, as
applicable, of the Building and Support Facilities originally provided by
Landlord and all such replacement, restoration and repair must be completed and
possession of the entire Leased Premises tendered to Tenant within one hundred
eighty (180) days from the date of the occurrence of such casualty. Within
twenty (20) days of the date of such casualty, damage or destruction, Landlord
shall furnish Tenant, in writing, a projected completion date for Landlord's
repairs, replacement and/or reconstruction. If Landlord's projected completion
date is more than one hundred eighty (180) days from the date of casualty,
damage, and/or destruction, then within fourteen (14) days after Tenant receives
Landlord's written projected completion date, Tenant shall have the right to
terminate this Lease by providing Landlord written notice of its election to
terminate, effective as of the date of the occurrence of the casualty. In the
event that:

                  (i)   Tenant elects not to terminate this Lease after being
                        notified that Landlord's projected completion date is
                        more than one hundred eighty (180) days after the date
                        of casualty, damage and/or destruction and Landlord
                        fails to complete its work by Landlord's projected
                        completion date; or,

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                  (ii)  Landlord's projected completion date is less than one
                        hundred eighty (180) days from the date of casualty,
                        damage and/or destruction and Landlord fails to complete
                        its work within said one hundred eighty (180) days;

then Tenant may terminate this Lease by providing Landlord with written Notice
of Tenant's election to terminate, provided such notice of termination is given
prior to completion of Landlord's work. The effective date of termination shall
be set forth on Tenant's written notice, although Tenant shall be entitled to an
additional period of time, not to exceed sixty (60) days, to remove Tenant's
property, including Tenant's Trade Fixtures and Equipment as that term is
defined in Section 9.01, from the Leased Premises. During this additional period
of time after the Termination of Lease Agreement, Tenant shall continue to pay
the then current rent on a per diem basis.

            B. Landlord shall not be obligated to replace, repair, or restore
any property belonging to Tenant or any improvements to the Leased Premises made
by Tenant.

            C. In the event that such a casualty or occurrence involving
substantial damage or substantial destruction occurs within the last three (3)
years of the Term of this Lease, then Landlord shall have no obligation to
replace, repair and/or restore the Leased Premises, and this Lease shall be
deemed terminated effective as of the date of the occurrence of the casualty.
Tenant shall then have a reasonable period time not to exceed sixty (60) days,
to remove Tenant's property, including Tenant's Trade Fixtures and Equipment as
that term is defined hereafter at Section 9.01 from the Leased Premises during
which period of time no rents shall be due and payable to the Landlord.

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            D. In the event of casualty, which does not otherwise cause a
termination of this Lease, Tenant shall be obligated to pay rent for all periods
prior to the effective date of termination whether or not the Leased Premises
are occupied.

            SECTION 5.07. TENANT'S PROPERTY: Notwithstanding the language of
Section 5.06, and subject to the payment to Landlord as set forth in Section
5.05, any insurance due and payable resulting from loss to Tenant's Trade
Fixtures and Equipment as defined in Section 9.01 shall be paid to Tenant.

                              ARTICLE 6. UTILITIES

            SECTION 6.01. TENANT'S RESPONSIBILITY: The Tenant shall, from and
after the Commencement Date, and continuing throughout the Term, pay all charges
for telephone, gas, electricity, sewage and water used in or on the Leased
Premises as such charges are or may be determined by a meter dedicated solely to
the Leased Premises. Tenant further agrees to pay all charges for repairs to any
and all meters on the Leased Premises whether necessitated by ordinary wear and
tear, temperature extremes, accidents or any other cause. Such payment shall be
made immediately upon receipt by Tenant of the invoice for said charges.
Nevertheless, notwithstanding anything to the contrary herein contained, Tenant
shall have the right to contest any charges for utility services or meter
repairs, pursuant to the same terms and conditions as provided for contesting
taxes under Section 4.06 hereof. It is also understood and agreed that any
hookups, feeds or service connections or facilities for utilities contemplated
hereunder, shall also be the responsibility of Tenant, either for the
commencement of service at any time after the date hereof, and continuing
throughout the Term.

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                         ARTICLE 7. WASTE AND NUISANCE

            SECTION 7.01. TENANTS RESPONSIBILITY: Tenant shall not commit, or
suffer to be committed, any waste to the Leased Premises, nor shall it maintain,
commit, or permit the maintenance or commission of any nuisance on the Leased
Premises or use the Leased Premises for any unlawful purpose; nor permit any
activity or any condition to exist upon the Leased Premises which would
invalidate or prevent the procurement of any insurance policy which may at any
time be required pursuant to the provisions of Article 5 hereof.

      ARTICLE 8. MAINTENANCE AND REPAIRS; INDEMNITY AND HOLD HARMLESS FROM
                                 HAZARDOUS WASTE

            SECTION 8.01. LANDLORD'S RESPONSIBILITY: Landlord's liability for
maintenance and repairs of the Leased Premises shall be limited to structural
and roof repairs to the interior and exterior of the Building and Support
Facilities throughout the Term, other than any changes or alteration to the
structure of the interior and exterior of the Building and Support Facilities as
contemplated by Tenant's construction under Article 3 (which such changes or
alterations shall be the responsibility of Tenant); or any repairs necessitated
by Tenant's use of the Leased Premises.

            SECTION 8.02. TENANT'S RESPONSIBILITY: Other than Landlord's
responsibility as set forth in Section 8.01, Tenant shall be responsible for any
and all repairs, both of a minor and major nature for the Leased Premises, and
agrees to keep the Leased Premises in good order and repair, together with any
and all alterations, additions and improvements therein or thereto; and shall at
Tenant's own expense promptly make all needed repairs and replacements in and to
the Leased Premises including sidewalks, water, sewer and gas connections, pipes
and mains, and all other fixtures, machinery and equipment, all mechanical,
electrical and plumbing systems, now or hereafter belonging to or connected with
the Leased Premises or used in its operation. All such repairs and replacements
shall be of first class

                                       14
<PAGE>
quality, sufficient for the proper maintenance and operation of the Leased
Premises. Tenant shall also be completely responsible for all maintenance,
repair and replacement of the parking areas, and also agrees to have full and
complete responsibility for the removal of ice, snow and trash as required.
Trash must be placed in covered containers in order that it cannot blow about
the premises or any abutting property. Grass cutting and all maintenance of lawn
and shrubbery is the responsibility of the Tenant. All repairs, maintenance and
upkeep required of Tenant hereunder shall be in accordance with all applicable
State, Federal and local rules, regulations and ordinances.

            SECTION 8.03. PARKING AREA: As listed above in Section 8.02, the
maintenance, repair and replacement of parking facility and also any driveways
forming a portion of the Leased Premises shall be the sole responsibility of
Tenant. Tenant hereby agrees that (subject to Landlord's warranties as listed
heretofore in Section 3.01), it shall receive the existing parking facility and
access drives in an "as is" condition as of the Commencement Date and any damage
caused to them hereafter shall be the responsibility of Tenant, which shall
repair the same in accordance with its other repair responsibilities outlined in
this Article 8. In addition, in the event Tenant causes any damage, other than
that caused by reasonable wear and tear, to any of the access roads or abutting
industrial sites in the Murray Corporate Park resulting from overweight
vehicles, etc., Tenant shall reimburse Landlord for any such damage resulting
therefrom.

            SECTION 8.04. FAILURE TO REPAIR, RIGHT TO CURE: Failure on the part
of either Landlord Tenant to fulfill its duty to repair the Leased Premises
shall constitute a default under the Terms of this Lease. Landlord or Tenant
shall be permitted to accomplish the required repairs or perform any work or
construction required to fulfill Landlord's or Tenant's responsibility under
this Article; and if either does the same, the work

                                       15
<PAGE>
shall not constitute a waiver of the other's default in failing to perform its
obligations of repair hereunder, or the right to payment therefore. The cost to
Landlord of making such repairs shall be considered additional rents due
hereunder, which Tenant shall be obligated to pay in accordance with the terms
hereof; and if Tenant does the same, Tenant shall have the right to offset its
reasonable costs and expenses, which were actually incurred by Tenant to perform
any work or construction required to fulfill Landlord's responsibility under
this Article, against the rent due hereunder.

            SECTION 8.05. INDEMNITY AND HOLD HARMLESS FROM HAZARDOUS WASTE:
Landlord and Tenant hereby each agrees to defend, indemnify and hold harmless
each other and each other's partners, shareholders, directors, officers,
employees and agents, assignees, subtenants or successors in interest and their
directors, officers, employees and agents, from and against any and all losses,
claims, damages, penalties and liability, including all out-of-pocket litigation
costs and reasonable fees and expenses of counsel, (i) including all foreseeable
and all unforeseeable consequential damages, directly or indirectly, arising out
of the use, generation, storage, release or disposal of Hazardous Materials by
the indemnifying party, its agents or contractors prior to execution of this
Lease or at any time thereafter, and (ii) including, without limitation, the
cost of any required or necessary repair, cleanup, or detoxification and the
preparation of any closure or other required plants, whether such action is
required or necessary prior to or following the Commencement Date of the Term,
to the full extent that such action is attributable, directly or indirectly, to
the presence or use, generation, storage, release, threatened release, or
disposal of Hazardous Materials by the indemnifying party on, under or in the
property underlying the Leased Premises. For the purposes of this Section 8.04,
Hazardous Materials shall include but not be limited to substances defined as
"hazardous substances," "Hazardous Materials," or "toxic substances" in the

                                       16
<PAGE>
Comprehensive Environmental Response, Compensation and Liability Act of 1980, as
amended, 42 U.S.C. Section 9601, et seq., the Hazardous Materials Transportation
Act, 49 U.S.C. Section 1801, et seq.; the Resource Conservation and Recovery
Act, 42 U.S.C. Section 6901, et seq.; and those substances defined as hazardous,
toxic, hazardous wastes, toxic wastes or as hazardous or toxic substances by any
law or statute now or hereafter in effect in the State in which the Leased
Premises are located, and in the regulations adopted and publications
promulgated pursuant to said laws. The provisions of this paragraph shall
survive the Termination Date, and become continuing covenants thereafter.

               ARTICLE 9. ALTERATIONS, IMPROVEMENTS AND FIXTURES

            SECTION 9.01. TRADE FIXTURES AND EQUIPMENT: Tenant shall have the
right, as part of Tenant's construction contemplated under Article 3, and at any
time thereafter, at any time and from time to time during the Term, at its sole
cost and expense, to affix and install such personal property, trade fixtures
and equipment, of either a permanent or non-permanent nature (herein
collectively "Trade Fixtures and Equipment"), to, in, or on the Leased Premises
as it shall in its sole discretion deem advisable. For purposes of this
paragraph, Trade Fixtures and Equipment shall incorporate and mean all such
property referred to in the above sentence, other than Non-Trade Fixtures as
defined hereafter in Section 9.02. All Trade Fixtures and Equipment affixed
and/or installed or in any way placed in or on the Leased Premises shall at all
times belong to Tenant and may be removed by Tenant at any time during the Term
or within a reasonable time after the expiration of the Term (provided Tenant
shall pay to Landlord rental for the period of occupancy beyond the Termination
Date based on the preceding month's rent under the Lease, multiplied by a factor
of 125%, and pro rated on a daily basis), provided that any damages to the
Leased Premises

                                       17
<PAGE>
caused by such removal shall be repaired by Tenant at its own cost and expense.
Notwithstanding other provisions of this Section 9.01, Tenant agrees that in its
fixturing or the installation of any equipment and trade fixtures permitted
herein, that it will not cause any excess load nor undue stress on or to the
structural portion of the Building or the Support Facilities.

            SECTION 9.02. NON-TRADE FIXTURES: All structural alterations,
additions, improvements to the Land or Building (herein "Non-trade Fixtures"),
constructed upon or affixed to the Leased Premises will immediately become and
remain the property of Landlord.

            For purposes of this Lease, "Non-trade Fixtures" shall be defined
as: (a) permanent structural alterations, additions and improvements to the Land
or Building, such as new interior permanent walls and other structural
remodeling; (b) roof mounted air-conditioning or heating systems; (c) concrete
pads; (d) additional utilities installed on the Leased Premises, such as gas,
water, electric, including panels and conduits up to but not including any
control panels located on Tenant's equipment or machinery; (e) light fixtures;
(f) plumbing fixtures; (g) space heaters hung from or attached to the Building
by piping or other connections; (h) carpeting; (i) window coverings; (j) the
smoke alarm system or systems; (k) any and all conduit installed for the
telephone, security, smoke alarm or fire prevention systems; (l) any
pre-treatment facilities required by Tenant for the disposal of its sanitary
sewer waste; and (m) any replacement of or substitution by Tenant of any of the
above throughout the Term. Notwithstanding any other language of this paragraph,
the term "Non-Trade Fixtures" shall not include any "buss duct" installed by
Tenant on the Leased Premises, which shall be considered within the definition
"Trade Fixtures and Equipment" under Section 9.01.

                                       18
<PAGE>
            SECTION 9.03. LANDLORDS WAIVER: Tenant shall have the right to
finance through a bonafide lending agency (hereinafter "Tenant's Lender") any of
the Trade Fixtures and Equipment which it determines to install in the Leased
Premises; and in which event, Landlord agrees to execute a Landlord's Waiver in
such form as is hereinafter agreed to; however, Landlord shall not be obligated
to issue any Landlord's waiver for Non-Trade Fixtures as defined in Section 9.02
above. Whatever the form of Landlord's Waiver, the same shall contain adequate
assurances to Landlord that (a) in the event Tenant's Lender causes the removal
of any collateral from the Leased Premises, that Tenant's Lender shall repair
any and all damage to the Leased Premises; (b) in the event of termination of
the Lease for any reason, Tenant's Lender shall cause removal of the collateral
within thirty days after having been given written notice of such termination;
and (c) Tenant's Lender agrees to pay rent for the Leased Premises for the
period between the termination and the date of removal.

            SECTION 9.04. REMOVAL ON TERMINATION: Upon termination of this Lease
for any reason, provided that Tenant is otherwise not in default hereof, Tenant
shall cause the removal of all Trade Fixtures and Equipment together with such
of the Non-trade Fixtures that were installed by Landlord as Landlord shall
direct. As stated heretofore, Tenant shall not have the right to remove any of
the Non-trade Fixtures without Landlord's prior written consent. Upon removal of
the Trade Fixtures and Equipment and the Non-trade Fixtures for which written
consent has been given by Landlord, Tenant shall cause the Leased Premises to be
restored to the same condition as they are in as of the Commencement Date,
reasonable wear and tear accepted.

                                       19
<PAGE>
                          ARTICLE 10. QUIET POSSESSION

            SECTION 10.01. COVENANT OF QUIET POSSESSION: Landlord shall, on the
Commencement Date, place Tenant in quiet possession of the Leased Premises and
shall secure it in the quiet possession thereof against all persons claiming the
same during the Term. In the event that Landlord cannot deliver quiet possession
as aforesaid on the Commencement Date, this Lease Agreement may, at the option
of Tenant, terminate and all monies, if any, delivered to Landlord on account of
rent and security deposit, or other charges shall be refunded to Tenant, and the
Lease shall be deemed void from inception.

            SECTION 10.02. SUBORDINATION, ATTORNMENT AND NON-DISTURBANCE: This
Lease shall be subordinate, at the option of Landlord, to any and all
encumbrances given by Landlord which may be required for the financing or the
refinancing of the Leased Premises from time to time (including any financing
which may be in place as of the Commencement Date) so long as Landlord obtains
from its Lender a Subordination and Attornment Agreement which provides inter
alia that if such Lender or any successor in interest thereto comes into
possession of the Leased Premises or any part thereof; or shall become the owner
of the Leased Premises or otherwise take over the rights of Landlord of the
Leased Premises, that such holder shall not disturb the possession, use or
enjoyment of the Leased Premises by Tenant, its successors or assigns, nor
disaffirm this Lease or Tenant's rights or any Estate granted hereunder, so long
as Tenant performs all of its obligations in accordance with the terms of this
Lease; and in which event, Tenant shall attorn to the rights of such holder. In
the event of such agreement, Tenant shall agree as part of the attornment
portion of the same, not to hold the Lender responsible for any default of
Landlord that may have occurred prior to the date that Lender may succeed to the
rights of Landlord thereunder.

                                       20
<PAGE>
        ARTICLE 11. TERMINATION, SURRENDER OF PREMISES AND HOLDING OVER

            SECTION 11.01. TERMINATION: As set forth heretofore, this Lease
shall terminate at 11:59 P.M. on October 31, 2001, and Tenant agrees to vacate
said premises by said date.

            If Tenant shall remain in possession of all or any part of the
Leased Premises after the expiration of the Term, then Tenant shall be deemed a
Tenant of the Leased Premises from month-to-month at the rental rate of
twenty-five (25%) percent in excess of rent paid during the one hundred
twentieth month of the Term, subject to all the terms and provisions hereof
except as to the Term. For purposes of this Section 11.01, Tenant shall not be
deemed to have held over if its vacation of the Leased Premises is completed by
the close of business of the tenth day following the Termination Date, with time
being of the essence (provided that Tenant pays rent for such 10 day period in
accordance with the terms of this Section 11.01.

            SECTION 11.02. SURRENDER AND REMOVAL OF PROPERTY: On expiration of
the Term as set forth in Section 11.01 hereof, any Trade Fixtures and Equipment
and Non-Trade Fixtures installed by Tenant not removed under Section 9.04 shall
be deemed to have been abandoned by Tenant and may be retained or disposed of by
Landlord with no resulting liability or charge due and owing Tenant; but with
Landlord being entitled to recover from Tenant any costs incurred by Landlord
resulting from such non-removal. If termination is caused by default of Tenant
resulting from failure of Tenant to pay rent, Tenant shall not have any right to
remove any property whatsoever from the Leased Premises and shall have no
further rights concerning the same and none of Tenant's property shall be
removed from the Leased Premises (other than that property for which a
Landlord's Waiver has been granted by Landlord pursuant to the provisions of
Section 9.03 hereof if the same are removed by Tenant's Lender); and in which
event, Landlord shall be entitled to recover

                                       21
<PAGE>
from Tenant as additional damages any and all reasonable costs actually incurred
by Landlord in restoring the Leased Premises to the condition they were in as of
the Commencement Date.

                            ARTICLE 12. CONDEMNATION

            SECTION 12.01. ALL OF PREMISES: If during the Term of this Lease or
any renewal thereof, all of the Leased Premises should be taken for any public
or quasi-public use under any law, ordinance or regulation, or by right or
eminent domain, this Lease shall terminate automatically as of the date of the
filing of the Declaration of Taking; and the rent and other charges shall be
abated during the unexpired portion of the Term, effective as of the date of the
taking of said premises by the condemning authority. In the event of said
taking, then Landlord and Tenant Shall each be entitled to such damages as
Landlords and Tenants are otherwise entitled to under applicable Pennsylvania
Law, and Tenant shall be entitled to such additional damages as it may be
entitled to by reason of being a "Displaced Person" under the Eminent Domain
Code of 1964, and any amendments thereto.

            SECTION 12.02. PARTIAL: If less than all of the Leased Premises
shall be taken for any public or quasi-public use under any law, ordinance, or
regulation, or by right of eminent domain, this Lease shall not terminate but
Landlord shall forthwith at its sole expense, restore and reconstruct the
Building and Support Facilities, and other improvements, situated on the Leased
Premises, provided such restoration and reconstruction shall in the reasonable
business judgment of Tenant, make the same tenantable and suitable for the uses
for which the premises are Leased within 180 days of the date of taking. Within
twenty (20) days of the date of taking, Landlord shall furnish Tenant in writing
a projected completion date for Landlord's restoration and reconstruction. If
Landlord's projected completion date is more than 180 days from the date of
taking, then within fourteen (14) days

                                       22
<PAGE>
after Tenant receives Landlord's written projected completion date, Tenant shall
have the right to terminate the Lease by providing Landlord written notice of
its election to terminate, effective as of the date of taking. Additionally,
Tenant shall have the same rights, and Landlord shall have the same obligations,
with respect to restoration and reconstruction following taking, as provided for
with respect to restoration and reconstruction following the occurrence of fire
or other casualty as set forth in Section 5.06 hereof. In the event of a partial
taking and the Landlord completes the restoration and reconstruction as provided
herein, the rent and other charges payable hereunder during the unexpired
portion of this Lease, from the date of taking, shall be abated or adjusted
equitably, as appropriate under the circumstances. In the event of such partial
condemnation, Landlord shall be entitled to any and all awards due and payable.

            SECTION 12.03. DAMAGES: Notwithstanding the provisions of Section
12.01 and 12.02, in the event of condemnation, Tenant shall be entitled to
special damages permitted tenants under Article 6-A of the Eminent Domain Code
of 1964, as amended or any supplements or amendments thereto, or any other
supplemental payments permitted to tenants under laws then in effect.

                       ARTICLE 13. DEFAULTS AND REMEDIES

            SECTION 13.01. PENALTY FOR DELAYED PAYMENT: If the payment of any
rent due hereunder is not received by Landlord by the seventh day of the month
for which payment is due, there shall be imposed a penalty of (a) five (5)
percent of the base amount of such payment, and (b) an additional five (5)
percent commencing 21 days after receipt of written notice by Tenant that
payment has not been received within said seven (7) day period; and which
penalties shall be in addition to any and all payments otherwise due

                                       23
<PAGE>
hereunder. The maximum penalty imposed on any single monthly installment or rent
by this Section shall be ten (10%) percent of such installment.

            SECTION 13.02. DEFAULT BY TENANT: If Tenant shall (a) allow the rent
to be in arrears more than thirty (30) days after Tenant has received written
notice of the same from Landlord; or (b) default in any other provision of this
Lease, and allow said default to continue for thirty (30) days from the date of
receipt of said notice, without instituting measures which will correct said
default within ninety (90) days thereafter; or (c) assign this Lease or sublet
the whole or any part of the Leased Premises or permit any other person to
occupy the whole or any other part of the Leased Premises (other than to an
affiliate of Tenant) without the express written consent of Landlord; or (d)
allow or permit an execution to be issued against Tenant which is not stayed by
payment or other means within fifteen (15) days from the date of issue of said
execution; or (e) permit or allow bankruptcy proceedings to be instituted by or
against Tenant in which Tenant is a debtor and which are not withdrawn or
dismissed within thirty (30) days after the institution of said proceedings; or
(f) permit or allow an assignment to be made by Tenant for the benefit of
creditors; or (g) permit or allow a receiver to be appointed for Tenant by legal
proceedings or otherwise; or (h) permit or allow a sale to be made of any of
Tenant's personal property by legal process; then in any of the above listed
events, Landlord may, at its option, without further notice to Tenant, declare
Tenant to be in default and after doing so, be entitled to the following
remedies:

            A. Landlord may at its option without notice to Tenant, terminate
this Lease; or in the alternative Landlord may reenter and take possession of
the Leased Premises and remove all persons and property therefrom, without being
deemed guilty of any manner of trespass, and relet the premises or any part
thereof, for all or any part of the remainder of said Term, to a party
satisfactory to Landlord, and at such monthly rental as

                                       24
<PAGE>
Landlord may with reasonable diligence be able to secure. Should Landlord be
unable to relet after reasonable efforts to do so, or should such monthly rental
be less than the rental Tenant was obligated to pay under this Lease, or any
renewal thereof, plus the expense of reletting, the Tenant shall pay the amount
of such deficiency to Landlord.

            B. Landlord may bring a suit for damages against Tenant for rents
due and payable, and may also bring an action for specific performance to
maintain its rights under this Lease.

            C. Notwithstanding re-entry and termination pursuant to the above
sections, Tenant shall remain liable for any rent and damages, which may be due
or sustained prior thereto, all reasonable costs, all legal and other
professional fees and expenses incurred by Landlord in recovering the Leased
Premises or recovering any monies due under this Lease and in leasing the
Premises to another Tenant. Tenant shall also be liable for damages to be
calculated in the following manner: Tenant shall pay an amount of money equal to
the total rent which but for termination would have become payable during the
remainder of the Term, less the amount of rent, if any, which Landlord may
receive during such period from others to whom the Leased Premises may be rented
on such terms and conditions and that such rentals as Landlord, in its sole
discretion, shall deem proper.

            D. In any event of default, Landlord may declare the balance of the
rents due during the balance of the Term as if by the Terms of the Lease, the
same were all payable in advance.

            E. All rights and remedies of Landlord under this Lease shall be
cumulative, and none shall exclude any other right or remedy at law. Such rights
and remedies may be exercised and enforced concurrently and whenever and as
often as occasion therefore arises.

                                       25
<PAGE>
                       ARTICLE 14. INSPECTION BY LANDLORD

            SECTION 14.01. RIGHT OF INSPECTION: Tenant shall permit Landlord,
its respective agents or mortgagees, after reasonable notice of not less than
forty-eight (48) hours, to enter onto and upon the Leased Premises (except for
those areas where confidential material is stored) at all reasonable times
during regular business hours, subject to Tenant's normal safety and security
regulations, for the purpose of inspecting the same or for the purpose of
maintaining or making repairs or alterations to the building.

                    ARTICLE 15. ADDITIONAL TENANT COVENANTS:

            SECTION 15.01. USE OF LEASED PREMISES: Tenant shall use the Leased
Premises only for the following purposes:

            A. Industrial use in accordance with Tenant's business, provided
that in accomplishing such use, Tenant must comply with all zoning ordinances,
restrictive covenants, rules, laws and regulations in effect at all times
throughout the Term of this Lease.

            B. After the commencement of the Term, in the event that Tenant is
required to obtain permits for the use of the Leased Premises, then Tenant shall
bear the responsibility of obtaining all permits required and subject to Section
13.02 hereof, failure to obtain such permits shall constitute a default
hereunder.

            C. Tenant agrees not to use or occupy, suffer or permit the Leased
Premises or any part thereof to be used or occupied for any purpose contrary to
law or the rules and regulations of any public authority, or in any manner
deemed an unreasonable fire or safety hazard by competent municipal authority or
board of fire underwriters.

            D. No use of the Leased Premises shall be permitted other than what
they are structurally designed for.

                                       26
<PAGE>
            E. No intended use by Tenant of the Leased Premises shall be
permitted for which the Leased Premises must be materially altered without first
obtaining the permission of Landlord, and in addition to which, any alteration
required shall be subject to the limitations heretofore set forth in Article 3.

            F. No use shall be permitted which violates any law or regulation
pertaining to environmental hazards or environmental protection of any state,
local or federal agency.

            G. No use of the Leased Premises shall be permitted which involves
the raising or slaughtering of live stock or any other animals of any kind. H.
All landscaping on the Leased Premises shall be maintained by Tenant in order
that the Leased Premises and the amenities thereto retain a neat and clean
appearance.

            H. All landscaping on the Leased Premises shall be maintained by
Tenant in order that the Leased Premises and the amenities thereto retain a
neat and clean appearance.

            I. No use of the Leased Premises shall be permitted which attracts
large numbers of persons or large crowds on a regular basis.

            J. In the event that an association of tenants or owners in the
Murray Corporate Park is formed, then Tenant shall become a member of the same
and thereafter comply with all reasonable rules and regulations of the
association.

            SECTION 15.02. NO NUISANCE: Tenant agrees not to utilize the
premises for any use which constitutes a nuisance or unreasonable interference
with other users of the Murray Corporate Park. In this regard, the following
restrictions shall be in effect:

            A. No employees, invitees, business visitors or other individuals
utilizing the Leased Premises at any time shall be permitted to park their motor
vehicles in any space that is not completely contained

                                       27
<PAGE>
within the Leased Premises (nor on any portion of the access road, whether
within the Leased Premises or not).

            B. No retail sales of any kind whatsoever shall be permitted on the
Leased Premises.

            SECTION 15.03. SIGNS: Tenant shall be permitted to erect a sign or
signs in accordance with an approved design hereinafter agreed to between
Landlord and Tenant. After occupancy, Tenant shall not erect any other sign
without the prior approval of Landlord which approval shall not be unreasonably
withheld or delayed. All signs, when erected, shall be maintained by Tenant in a
good state of repair throughout the time that the same are erected, and must
meet standards imposed by ordinances, laws and regulations of all governing
bodies having jurisdiction over the same.

            SECTION 15.04. CONTINUING COVENANTS: The requirements set forth
heretofore in Section 15.01 through 15.03 shall be applicable and binding upon
Tenant and continuing obligations and restrictions upon Tenant's use of said
Leased Premises throughout the Term.

                      ARTICLE 16. ASSIGNMENT AND SUBLEASE

            SECTION 16.01. ASSIGNMENT AND SUBLETTING BY TENANT: Tenant shall not
assign this Lease or sublet all or any portion of the Leased Premises except for
an assignment to, or sublet by, an affiliate of Tenant without the prior written
consent of Landlord, such consent not to be unreasonably withheld. In addition,
the term "assignment" shall include in addition to an out-right assignment of
this Lease, (a) any transfer of more than fifty (50) percent of the outstanding
shares of Tenant; (b) the granting by the owner of Tenant of an option to a
third party to acquire more than fifty (50) percent of the shares of Tenant; (c)
any merger of Tenant into any other corporation; (d) dissolution of Tenant; or
(e) any other fundamental change of Tenant by which the ownership of Tenant is
altered in any way. In

                                       28
<PAGE>
the event of such transfer, the restrictions against assignment otherwise
contained in this Section 16.01 shall continue to be binding upon the
transferee.

            In the event of an Assignment permitted under this Section, then all
of the terms, restrictions and covenants of this Lease, including the
restrictions against Assignment, otherwise contained in this Agreement, shall
continue to be binding upon the assignee.

            SECTION 16.02. ASSIGNMENT BY LANDLORD: Landlord shall have the right
of assignment of this Lease at any time.

                      ARTICLE 17. MISCELLANEOUS PROVISIONS

            SECTION 17.01. NOTICES AND ADDRESSES: All notices provided under
this Lease Agreement shall be given by certified mail, return receipt requested,
and considered received upon delivery or refusal of delivery by the addressee
set forth in said notice. Said notices shall be sent to the address specified on
page one (1) hereof, or to such other address as either party shall have
designated to the other. The addresses may be changed upon written notice by
either party to the other to such other address as such party sets forth in
writing.

            SECTION 17.02. REPORTING REQUIREMENT - ANNUAL REPORTS: It is
acknowledged that prior to the date hereof, Tenant has caused to be prepared and
delivered unto Landlord its last audited financial statement. From and after the
date hereof, Tenant shall cause to be prepared and delivered unto Landlord its
annual financial statements prepared in accordance with GAAP on or before ninety
(90) days after the close of each fiscal year throughout the Term; provided that
nothing contained within the financial statements shall be construed in any
matter to constitute a default under this Lease (provided that Tenant is
otherwise in compliance with all of the Terms hereof).

                                       29
<PAGE>
            SECTION 17.03. PARTIES BOUND: This Agreement shall be binding upon
and inure to the benefit of the parties hereto and their respective successors,
administrators, representatives and assigns, when otherwise permitted by this
Agreement.

            SECTION 17.04. APPLICABLE LAW: This Agreement shall be construed
under and in accordance with the laws of the Commonwealth of Pennsylvania, and
all obligations of the parties created hereunder are performable in Westmoreland
County, Pennsylvania.

            SECTION 17.05. LEGAL CONSTRUCTION: In case any one or more of the
provisions contained in this Lease shall for any reason be held to be invalid,
illegal, or unenforceable in any respect, such invalidity, illegality, or
unenforceability shall not affect any other provision thereof and this Lease
shall be construed as if such invalid, illegal, or unenforceable provision had
never been contained herein.

            SECTION 17.06. AMENDMENT: No amendment, modification, or alteration
of the terms hereof shall be binding unless the same be in writing, dated
subsequent to the date hereof, and duly executed by the parties hereto.

            SECTION 17.07. RIGHTS AND REMEDIES CUMULATIVE: The rights and
remedies provided by this Lease are cumulative; and the use of any one right or
remedy by either party shall not preclude or waive its right to use any or all
other remedies. Said rights and remedies are given in addition to any other
rights the parties may have by law, statute, ordinance or otherwise.

            SECTION 17.08. WAIVER OF DEFAULT: No waiver by the parties hereto of
any default or breach of any Term, condition or covenant of this Lease shall be
deemed to be waiver or any other breach of the same or any other Term, condition
or covenant contained herein.

            SECTION 17.09. TIME OF ESSENCE: Time is of the essence of this
Agreement and for all undertakings contemplated hereby.

                                       30
<PAGE>
            SECTION 17.10. NO BROKERAGE COMMISSION: Landlord acknowledges that
it may owe brokerage fees to Cushman & Wakefield in accordance with its prior
agreements with it. Other than Cushman & Wakefield, Landlord and Tenant each
covenant and agree with the other that no realtor, real estate firm or broker is
entitled to any commission resulting from the sale of the Leased Premises; and
in this regard, each covenant and agree to hold harmless the other from any and
all claims or attempted claims resulting.

            SECTION 17.11. SECURITY GUARANTY: Tenant does hereby acknowledge
that it has obtained and delivered to Landlord as additional security for its
obligations hereunder, the guaranty of Technitrol, Inc., its parent corporation
(hereinafter "Guarantor") in accordance with the Guaranty and Suretyship
Agreement, the form of which is attached hereto as Exhibit "C." Tenant does
hereby agree that in the event of any default under the Guaranty Agreement, that
the same shall constitute a default of this Lease.

            SECTION 17.12. NONRECORDABILITY: Landlord and Tenant acknowledge to
have executed and delivered to each other a Memorandum in the form attached as
Exhibit "D" attached hereto and made a part hereof, which shall be recorded at
the option of either party hereto.

            IN WITNESS WHEREOF, the undersigned Landlord and Tenant hereby
execute this Agreement as of the day and year first above written.

WITNESS:

                                          RIDILLA-DELMONT

/s/ Joseph Conconnon                      By: /s/ John M. Ridilla
------------------------------------          --------------------------------
                                                John M. Ridilla
                                                General Partner

/s/ Joseph Conconnon                      By: /s/ P. Richard Ridilla
------------------------------------          --------------------------------
                                                P. Richard Ridilla
                                                General Partner

ATTEST:                                   ADVANCED METALLURGY INCORPORATED

/s/ Valerie A. Miller                     By: /s/ James J. Rafferty, Jr.
------------------------------------          --------------------------------
                                                James J. Rafferty, Jr.
                                                President

                                       31
<PAGE>
                            FIRST AMENDMENT TO LEASE

      THIS FIRST AMENDMENT TO LEASE (the "AMENDMENT") is made this 21st day of
September, 2001 by and between RIDILLA-DELMONT, a Pennsylvania limited
Partnership ("LANDLORD"), and AMI DODUCO, INC., formerly ADVANCED METALLURGY
INCORPORATED, a Pennsylvania corporation ("TENANT").

                                   WITNESSETH:

      WHEREAS, pursuant to that certain Lease Agreement (the "ORIGINAL LEASE")
dated October 15, 1991 by and between RIDILLA-DELMONT, as Landlord, and Advanced
Metallurgy Incorporated, as Tenant, Landlord leased to Tenant and Tenant rented
from Landlord certain premises located in the Municipality of Murrysville,
Westmoreland County, Pennsylvania, all as defined in the Original Lease as
"Leased Premises," and more particularly described on Exhibit "A" thereto;

      WHEREAS, pursuant to a certain Guaranty and Suretyship Agreement
("GUARANTY AGREEMENT") dated October 15, 1991 by and between TECHNITROL, INC.,
as Guarantor, and RIDILLA-DELMONT, as Landlord, TECHNITROL, INC. (hereinafter
"GUARANTOR") guaranteed (i) the due and punctual payment of all rents and other
payments obligations due Landlord or others by Tenant under the Lease and (ii)
the due and punctual performance of all other obligations of Tenant under the
Lease;

      WHEREAS, the parties hereto hereby desire to enter into this Amendment to
(i) enlarge the Land; (ii) provide for the construction by Landlord of a 23,000
square foot addition to the Building (the "BUILDING ADDITION") to be leased by
Tenant; (iii) extend the Term for an additional period of ten (10) years (the
"EXTENDED Term"); (iv) provide for additional rental payments throughout the
Extended Term; and (v) provide for Landlord financing of certain improvements to
the Building and the Building Addition resulting from any requested changes to
the Plans and Specifications (hereinafter defined) for the Building Addition and
any requested improvements to the Building, all as set forth hereafter; and

      WHEREAS, Capitalized terms used, but not defined herein, shall have the
meanings ascribed to such terms in the Original Lease. The term "Lease" as used
herein shall mean the Original Lease as amended hereby.

                                       1
<PAGE>
      NOW, THEREFORE, in consideration of the premises, and for other good and
valuable consideration, the receipt and sufficiency of which is acknowledged,
the parties hereto, intending to be legally bound hereby, agree as follows:

      1.    The recitals set forth above are hereby incorporated into this
Amendment as if fully set forth below.

      2.    The recitals to the Original Lease are amended as follows:

            A. From and after the Turnover Date (hereinafter defined), the term
"Land" shall mean and include all of the land described in Exhibit "A" attached
hereto and made a part hereof.

            B. From and after the Turnover Date, the term "Leased Premises"
shall include the Building Addition and the Land (as defined herein) in addition
to the Building and Support Facilities.

            C. From and after the Turnover Date, the term "Building" shall
include the Building Addition in addition to the Building (as defined in the
Original Lease), and the term "Support Facilities" shall include those Support
Facilities serving the Building Addition as well as the Building (as defined in
the Original Lease).

      3.    The following new Section 1.04 is hereby made a part of the Lease:

            Section 1.04. Extended Term: The Term shall be extended for an
            additional period of ten (10) years (the "EXTENDED TERM"),
            commencing on the first day of the month following the Turnover Date
            and terminating as of the last day of the 120th full month
            thereafter.

      4.    The following new Sections 2.01(C), (D), (E) and (F) are hereby
made a part of the Lease:

            2.01(C). For each calendar month of the original Term after October
            31, 2001 and extending to (but not including) the first calendar
            month of the Extended Term, Tenant shall pay to Landlord monthly
            rent of $35,061.29, which payments shall be due in advance on the
            first business day of each calendar month for which such rent is
            due.

            2.01(D). For the first month of the Extended Term through and
            including the 60th month of the Extended Term, Tenant shall pay to
            Landlord a total rent of $2,869,102.20, payable in equal monthly
            installments of

                                       2
<PAGE>
            $47,818.37, which payments shall be due in advance on the first
            business day of each calendar month for which such rent is due.

            2.01(E). For the 61st month of the Extended Term through and
            including the 120th month of the Extended Term, Tenant shall pay to
            Landlord a total rent of $2,972,805, payable in equal monthly
            installments of $49,546.75, which payments shall be due in advance
            on the first business day of each calendar month for which such rent
            is due.

            2.01(F). It is understood and agreed that Tenant shall have no
            obligation to pay any real estate taxes, general and special
            assessments or any other taxes or assessments for or in connection
            with the Building Addition or any additional Land leased by Tenant
            hereby prior to the Turnover Date.

      5.    Section 2.02 of the Original Lease is hereby deleted in its entirety
and the following is substituted therefor:

            Section 2.02. Termination Date; Extended Term Commencement Date;
            Extended Term Termination Date: The Termination Date shall be the
            last day of the calendar month during which the Turnover Date
            occurs. The Extended Term Commencement Date shall be the first day
            of the first full calendar month following the Turnover Date. The
            Extended Term Termination Date shall be 11:59 p.m. on the last day
            of the 120th calendar month after the Extended Term Commencement
            Date. From and after the Extended Term Commencement Date, the word
            "Term" when used in the Lease shall mean the "Extended Term" and the
            word "Termination Date" shall mean the "Extended Term Termination
            Date."

      6.    The following new Sections 3.09, 3.10 and 3.11 are hereby made a
part of the Lease:

            Section 3.09 Construction by Landlord: Landlord shall cause the
            Building Addition to be constructed in accordance with the Outline
            Specifications and the Site Plan Drawing No. S-1 prepared for Modal
            Inc. dated June 21, 2001 attached hereto and made a part hereof as
            Exhibits "B" and "C" respectively (collectively, the "PLANS AND
            SPECIFICATIONS"). Notwithstanding the foregoing, Landlord shall not
            be responsible for construction of the items listed as "exclusions"
            on Exhibit "B." The Building Addition shall be completed in
            accordance with the requirements of the Plans and Specifications, in
            a good and workmanlike manner, lien

                                       3
<PAGE>
            free, and in accordance with all applicable laws, rules, ordinances,
            codes and the like of any and all governmental and
            quasi-governmental authorities having jurisdiction over Landlord,
            Tenant, the Building or any construction by Landlord (hereinafter
            "LAWS"), including, but not limited to, any Laws pertaining to
            building codes and zoning matters. Landlord, at its sole cost and
            expense, shall obtain any and all permits, licenses and the like
            required for or in connection with the construction of the Building
            Addition.

            Section 3.10  Landlord's Obligations; Turnover Date:

            (a)   Landlord shall complete the Building Addition, including
                  placing all Building Addition utility and mechanical systems
                  in good and proper working order and obtaining a Certificate
                  of Occupancy or other like certificate or permit therefor, by
                  no later than the 180th full calendar day following the date
                  of issuance of a building permit for the Building Addition by
                  the Municipality of Murrysville, but in any event on or before
                  May 5, 2002. For purposes of this Section 3.10, the Building
                  Addition shall be deemed completed on the date that Landlord's
                  duly licensed architect certifies in writing to Tenant that
                  the Building Addition has been fully completed in accordance
                  with the Plans and Specifications, as the same may be amended
                  by the parties, including, without limitation, placing all
                  building and mechanical systems for the Building Addition in
                  good and proper working order in accordance with all
                  applicable laws (the "TURNOVER DATE").

            (b)   In the event that a building permit is not obtained by
                  Landlord from the Municipality of Murrysville by October 5,
                  2001, then Tenant shall have the right to terminate this
                  Amendment as it relates to the Building Addition only,
                  provided that such termination is in writing and occurs prior
                  to issuance of such building permit. Notwithstanding any such
                  termination, Tenant shall remain obligated to pay the full
                  amount of Change Order No. 1, as described in Paragraph 9
                  hereof, within thirty (30) days of receipt of such change
                  order. In the event that a building permit is not obtained by
                  Landlord from the Municipality of Murrysville by November 5,
                  2001 and Tenant has not terminated this Amendment pursuant to
                  the preceding sentence, then Landlord shall have the right to
                  terminate this Amendment as it relates to the Building
                  Addition only, provided that such termination is in writing
                  and

                                       4
<PAGE>
                  occurs prior to the issuance of such building permit. In the
                  event that this Amendment is not terminated with respect to
                  the Building Addition pursuant to the preceding two sentences
                  and the Building Addition is not completed by May 5, 2002 and
                  a Certificate of Occupancy or other like permit (without any
                  material conditions thereto) is not issued for the Building
                  Addition, then monthly rent for the Building Addition shall be
                  abated until the later of (i) Turnover Date or (ii) the
                  issuance of a Certificate of Occupancy or other like permit
                  (without any material conditions thereto) for the Building
                  Addition, and in addition thereto Tenant shall be entitled to
                  a rent credit (the "RENT CREDIT") against the monthly rent
                  first coming due for the Extended Term in an amount equal to
                  the sum of $261.51 multiplied by the number of days between
                  May 5, 2002 and the later of (i) the Turnover Date or (ii) the
                  issuance of a Certificate of Occupancy or other like permit
                  (without any material conditions thereto) for the Building
                  Addition. Notwithstanding the foregoing, in the event that the
                  Building Addition is not completed by June 5, 2002 and a
                  Certificate of Occupancy or other like permit (without any
                  material conditions thereto) is not issued for the Building
                  Addition, then the Rent Credit shall be increased to $523.02
                  multiplied by the number of days between June 5, 2002 and the
                  later of (i) Turnover Date or (ii) the issuance of a
                  Certificate of Occupancy or other like permit (without any
                  material conditions thereto) for the Building Addition. In the
                  event that this Amendment is terminated with respect to the
                  Building Addition pursuant to this Paragraph 3.10(b), then all
                  of the other terms, covenants and conditions contained in the
                  Original Lease, as amended hereby and not relating to the
                  Building Addition shall remain in full force and effect,
                  except that the rent (excluding any Additional Rent) payable
                  for the Extended Term shall be as follows:

                  (i)   For each calendar month of the original Term after
                        October 31, 2001 and extending to (but not including)
                        the first day of May, 2002, Tenant shall pay to Landlord
                        monthly rent of $35,061.29, which payments shall be due
                        in advance on the first business day of each calendar
                        month for which such rent is due.

                  (ii)  For period commencing as of May 1, 2002 and expiring as
                        of April 30, 2007, Tenant shall pay to Landlord a total
                        rent of $2,391,852.50, payable in equal monthly
                        installments of

                                       5
<PAGE>
                        $39,864.21, which payments shall be due in advance on
                        the first business day of each calendar month for which
                        such rent is due.

                  (iii) For the period commencing as of May 1, 2007 and expiring
                        as of April 30, 2012, Tenant shall pay to Landlord a
                        total rent of $2,478,305, payable in equal monthly
                        installments of $41,305.08, which payments shall be due
                        in advance on the first business day of each calendar
                        month for which such rent is due.

            (c)   Notwithstanding the provisions of subparagraph (b) above, in
                  the event that Landlord does not complete required repairs to
                  repaving of the parking lot by the Turnover Date, the same
                  shall not be reason for imposition of the Rent Credit provided
                  that the aforementioned repairs and repaving are completed by
                  May 15, 2002. Also, Landlord's work to repair and repave the
                  parking lot shall not cause disruption or interference with
                  Tenant's business at the Leased Premises.

            Section 3.11 Additional Improvements Financing:

            (a)   In addition to the improvements listed and described on the
                  Plans and Specification, Landlord agrees to complete any other
                  improvements to the Building and/or the Building Addition (the
                  "ADDITIONAL IMPROVEMENTS") which are requested by Tenant in
                  writing. Any such additions shall be memorialized in a writing
                  signed by Landlord and Tenant and shall be considered a
                  "Change Order" from the Plans and Specifications. All Change
                  Orders shall set forth in detail the nature of the work to be
                  performed and shall include the cost charged therefor.

            (b)   On or before the seventh day of the each calendar month
                  following the commencement of construction of the Building
                  Addition, Landlord shall submit to Tenant a report on
                  construction expenditures for the Additional Improvements
                  constructed through the last day of the previous month, along
                  with an invoice (the "ADDITIONAL IMPROVEMENTS INVOICE") for
                  the cost of the total amount of said expenditures plus the
                  accrued interest due thereon at the Applicable Interest Rate
                  (hereinafter defined). Tenant shall pay to Landlord the amount
                  of accrued interest only (at the

                                       6
<PAGE>
                  Applicable Interest Rate) on Additional Improvements within
                  ten (10) days of receipt of an invoice therefor. Such interest
                  shall accrue from the date of any construction expenditure by
                  Landlord through the date of any Additional Improvements
                  Invoice therefor. From and after the Turnover Date, Tenant
                  shall no longer be invoiced for any such interest.

            (c)   In addition to the rent payments pursuant to Sections 2.01(D)
                  and (E) above, commencing as of the 1st calendar month of the
                  Extended Term through and including the 120th calendar month
                  of the Extended Term, Tenant shall also pay, as Additional
                  Rent, on the first day of each of the foregoing calendar
                  months, the amount (the "ADDITIONAL IMPROVEMENTS FINANCING")
                  derived by amortizing the total aggregate amount of the cost
                  of the work listed on each Additional Improvements Invoice, in
                  an amount not to exceed $300,000, over 120 calendar months, at
                  an interest rate equal to the "prime rate" as published by PNC
                  Bank on the business day immediately prior to the Turnover
                  Date (the "PNC PRIME"), plus one-half of one percent (the
                  "APPLICABLE INTEREST RATE"). In the event that the total cost
                  of the Additional Improvements exceeds $300,000 in the
                  aggregate, the amount of any overage shall be paid by Tenant
                  to Landlord within 10 days of Tenant's receipt of the last of
                  the Additional Improvements Invoices.

       7.    Article 5 to the Original Lease is hereby amended as follows:

            (a)   Section 5.01(A) is hereby amended by adding the following at
the end thereof:

            Notwithstanding the foregoing, Tenant shall in no event be required
            to maintain fire and extended coverage insurance in an amount in
            excess of the full replacement cost of the Building (including the
            Building Addition). Upon request by Landlord, but no more frequently
            than one (1) time during any twelve (12) month period throughout the
            Term and the Extended Term (as the same may be extended), Tenant
            shall provide Landlord with a written statement of the value
            assigned to the Building (including, if applicable, the Building
            Addition) for insurance rating purposes. Commencing on the Turnover
            Date and for a period of 12 months thereafter, the minimum amount of
            insurance required to be placed by Tenant shall be $6.4 Million.
            Thereafter, and throughout the remainder of

                                       7
<PAGE>
            the Term and Extended Term the amount of insurance shall at all
            times be the full replacement cost of the Building and the Building
            Addition.

            (b) The name "John M. Ridilla" is hereby deleted from section 5.02
of the Original Lease and the name "John B. Ridilla" is hereby substituted

            (c) The term "required to be maintained by the parties hereto" is
hereby inserted after the words "policies of insurance" in Section 5.04.

            (d) Notwithstanding anything contained in Paragraph 5.06(c) of the
Original Lease to the contrary, in the event of a Major Casualty (hereinafter
defined) within the last three (3) years of the Extended Term, Landlord shall
have no obligation to repair, replace and/or restore the Leased Premises, unless
Tenant, within thirty (30) days of the casualty, agrees in writing to extend the
Extended Term so that the same shall expire as of ten (10) years from the
completion of the required repairs, replacements and/or restoration to the
Leased Premises, in which case Landlord shall be obligated to perform the
required repairs, replacements and/or restoration of the Leased Premises. In the
event that the parties extend the Extended Term as aforesaid, then all of the
terms, covenants and conditions contained in the Original Lease, as amended
hereby, shall remain in full force and effect, except that the rent (excluding
any Additional Rent) payable for any period of time beyond the original Extended
Term Expiration Date shall be at a rate as agreed upon by Landlord and Tenant.
In the event that Tenant does not agree to extend the Extended Term as
aforesaid, then Landlord agrees that it shall nevertheless notify Tenant within
forty-five (45) days of the casualty whether it intends to repair, replace
and/or restore the Leased Premises. In the event that Landlord notifies Tenant
within such forty-five (45) day period that it does not intend to repair,
replace and/or restore the Leased Premises (or in the event that Landlord fails
to so notify Tenant within such forty-five (45) day period), then (i) this Lease
shall terminate as of the date of the casualty; (ii) all rent shall be adjusted
to the date of such casualty and Tenant shall be refunded any amounts paid for
periods after the date of such casualty; (iii) Tenant shall pay any unpaid
Additional Improvements Financing to Landlord within sixty (60) days of the date
of such casualty; and (iv) Tenant shall be afforded a reasonable period of time,
commencing as of the date that Landlord notifies Tenant that it will not repair,
replace and/or restore the Leased Premises, or in the absence of any such
notice, commencing as of forty-five (45) days after the date of the casualty
(not to exceed ninety [90] days in the aggregate), in which to remove all of
Tenant's Trade Fixtures and Equipment from the Leased Premises and to fully
vacate the Leased Premises. For purposes hereof, the term "Major Casualty" shall
mean a casualty which renders 50% or more of the Leased Premises unusable for
Tenant's intended business use.

                                       8
<PAGE>
            (e) The words "Tenant's Trade Fixtures and Equipment" in Section
5.07 are hereby replaced with the words "all insured items, other than those in
the Landlord's interest."

      8.    The following new Section 17.13 is hereby made a part of the Lease:

            Section 17.13. Nothing in this Amendment shall be deemed to apply to
            work completed for and on behalf of Tenant by Modal, Inc. (the "IT
            Work") as referenced in Modal's March 20, 2001 proposal (the "MODAL
            PROPOSAL"). Notwithstanding the foregoing, Landlord hereby grants
            Tenant the right to cause the IT Work to be performed within the
            Leased Premises, and, in consideration therefor, Tenant agrees to
            pay Modal the sum of $12,515 for the IT Work completed as of the
            date hereof. The IT Work shall be performed in accordance with the
            provisions of Article 9 of the Original Lease. The IT Work shall be
            deemed either "Trade Fixtures and Equipment" or "Non-trade Fixtures"
            within the meaning of Section 9.01 and 9.02 of the Original Lease,
            respectively, depending on the classification of improvements
            identified in the IT Work.

      9.    It is acknowledged by the parties that the writing titled "Change
Order No. 1" dated July 27, 2001 attached hereto and made a part hereof as
Exhibit "D" shall be deemed a Change Order in the amount of $93,692.00 within
the meaning of Section 3.11 (a) hereof; and, that the work described on Change
Order No. 1 shall be deemed "Additional Improvements" within the meaning of
Section 3.11 (a) hereof, notwithstanding the fact that the majority of the work
described thereon has already been performed and that the bulk of the
expenditures contemplated therein have already been incurred by Landlord.

      10.   By joining in this Amendment, Guarantor acknowledges its consent to
this Amendment and agrees that the provisions of the Guaranty Agreement attached
to the Original Lease shall remain in full force and effect and shall extend to
all of the obligations and duties of Tenant set forth in the Original Lease, as
amended hereby, throughout the Term and the Extended Term.

      11.   Within 60 days of the Turnover Date, Landlord and Tenant shall
execute and record in the office of the Recorder of Deeds in and for
Westmoreland County, Pennsylvania, a Memorandum of this Amendment, in form and
substance reasonably acceptable to the parties, which memorandum shall set
forth, inter alia, the Extended Term Commencement Date and the Extended Term
Expiration Date.

                                       9
<PAGE>
      12.   Except as modified hereby, the Original Lease shall remain in full
force and effect and is hereby ratified and affirmed. In the event of a conflict
between the terms, covenants and conditions of this Amendment, and the terms,
covenants and conditions of this Original Lease, the terms, covenants and
conditions of this Amendment shall be controlling.

      13.   The terms of this Amendment shall bind and inure to the benefit of
the parties hereto and their respective successors and assigns.

      14.   This Amendment, including the Joinder of Guarantor attached hereto
and made a part hereof by this reference, may be signed by the parties in two or
more counterparts, each of which shall be deemed to be an original, and all of
which taken together shall constitute one and the same document. Receipt by
telecopier of a signed copy of this Amendment and the Joinder of Guarantor shall
be deemed receipt of the original document.

      15.   In the event that either of the parties exercises its right to
terminate this Amendment as it relates to the Building Addition only pursuant to
Paragraph 3.10(b) hereof, then the term "Turnover Date" when used herein, where
applicable, shall be deemed to mean May 1, 2002.

                          [CONTINUED ON FOLLOWING PAGE]

                                       10
<PAGE>
      IN WITNESS WHEREOF, Landlord and Tenant and Guarantor have executed this
First Amendment to Lease as of the day and year first above written.

WITNESS:                            RIDILLA-DELMONT, a Pennsylvania limited
                                   partnership

/s/ James M. Kolh                      By: /s/ P. Richard Ridilla
------------------------------          --------------------------------------
                                       Name:  P. Richard Ridilla,
                                       Title:  General Partner

ATTEST:                             AMI DODUCO, INC.

/s/ Albert Thorp, III                  By: /s/ Gunther Hehn
------------------------------          --------------------------------------
                                       Name:  Gunther Hehn
                                       Title:  VP & Segment Controller

                                       11

<PAGE>

                              JOINDER OF GUARANTOR

      Guarantor hereby joins in this First Amendment to Lease dated September
21, 2001 by and between Ridilla-Delmont, as Landlord, and AMI Doduco, Inc., as
Tenant, solely to acknowledge its consent hereto and its agreement to be bound
by the provisions of Section 10 hereof.

ATTEST:                                 TECHNITROL, INC.

                                        By: /s/ Albert Thorp, III
----------------------------------          ------------------------------------
                                            Name: Albert Thorp, III
                                            Title: VP-Finance & CFO
<PAGE>
                                   EXHIBIT "A"

                            Legal Description of Land

      ALL that certain lot or parcel of land situate in the municipality of
Murrysville, Westmoreland County, Pennsylvania, being more particularly bounded
and described as follows:

      FIRST: BEGINNING at a point on the northerly line of a private fifty (50)
foot roadway known as Corporate Drive, at corner of other lands of
Ridilla-Delmont, being Parcel 2 of the Murry Corporate Park, and which was
previously leased by Ridilla-Delmont to EPI Architectural Systems, Inc.,
pursuant lease, a memorandum of which was dated May 21, 1986, and duly recorded
in the Office of the Recorder of Deeds of Westmoreland County in Deed Book
Volume 2669, page 267. Thence from said point of beginning along line of Parcel
2, North 39(degree) 30' 00" West, 736.6 feet to a point on other lands of
Cornerstone Ministries, Inc.; thence along line of said Ministries, North
51(degree) 54' 30" East, 467.78 feet to a point on the southerly right of way
line of the William Penn Highway, also known as U.S. Route 22 (LR 187); thence
along said right of way line, South 63(degree) 30' 00" East, 330.01 feet to a
point; thence along same, South 63(degree) 30' 00" East, 341.73 feet to a point
at corner of lands now or formerly Storeall, Inc.; thence along said line of
said Storeall, South 24(degree) 45' 00" East, 38.34 feet to a point at corner of
lands of Parcel 1 in the aforementioned Murry Corporate Park Plan; thence along
line of Parcel 1, South 15(degree) 00' 00" West, 214.15 feet to a point; thence
along same, South 50(degree) 30' 00" West, 203.75 feet to a point in the center
of the aforementioned Corporate Drive; thence along the center line of the
aforementioned Corporate Drive, North 39(degree) 30' 00" West, 50.00 feet to a
point; thence along same, South 50(degree) 30' 00" West, 352.99 feet to a point,
the place of beginning.

      TOGETHER with the right to use Corporate Drive, a private roadway fifty
(50) feet in width as the same abuts on the southerly side of the above
described parcel and extends from Township Road 706 on the West, for a distance
of 663 feet, more or less, on a line North 50(degree) 30' 00" East from said
Township Road 706, and terminating on the easterly side of the above described
parcel.

      THE above-listed parcel is Parcel 3 of Murry Corporate Park Plan No. 4,
Lot Line Revision of Parcels 1 and 3, Municipality of Murrysville, Westmoreland
County, Pennsylvania as prepared by Civil & Environmental Consultants, Inc.
under revision date of July 1, 2001.
<PAGE>
                          [LETTERHEAD FOR MODAL, INC]

                             OUTLINE SPECIFICATIONS

                  AMI DODUCO ADDITION TO EXISTING EXPORT PLANT

                                                                    May 31, 2001

SCOPE OF WORK:

1)    Reinforced concrete footings & 12" concrete block foundation walls to
      minimum 3' below grade. Permiter insulation is 2" expanded polystyrene
      from top of footer to bottom of floor slab & extended underfloor for 12".
      Foundations have been designated with soil bearing pressure of 3,000 PSF.

2)    Reinforced concrete floor system to be 6" concrete with welded wire mesh
      over vapor barrier with 4" stone base.

3)    Butler Manufacturing Company's pre-engineered steel building 100' wide x
      230' long x 19' high. The building will be designed for a 30# roof snow
      load, a 10# collateral load for ceiling, lights, etc., and a 70 MPH wind
      load.

4)    Butler Manufacturing Company's MR-24 Standing Seam Roof System. 24-ga.
      aluminum-zinc alloy coated steel & concealed fasteners. Exposed fasteners
      located at splices & eaves. Roof system provided with gutters, downspouts,
      trims & 6" thick fiberglass blanket insulation with white reinforced
      polypropylene facing. Roof insulation to be rated R-19.

5)    The exterior building walls will be constructed of masonry and metal
      siding. The metal siding will be Butler Manufacturing Company's Stylwall
      siding insulated with 4" fiberglass with polypropylene facing R-13.
      Masonry walls will be white splitface block. Siding, block and trim will
      match existing as close as possible.

6)    All Exterior mandoors & frames to be hollow metal with required exit &
      entrance hardware.

7)    Three (3) 8 x 10 overhead doors will be relocated to new addition.

8)    Heating will include Two (2) 400,000 BTU unit heaters and related gas
      piping.

9)    Electrical construction includes: metal halide light fixtures with acrylic
      diffusers, (22) receptacles and power to unit heaters. New addition power
      to be fed from existing panels. New panel for addition to be 100 amp.

10)   Sprinkler construction will include coverage for ordinary hazard. The
      ordinary hazard may change if the Fire Marshall determines the contents of
      the building to be high hazard. Bid includes installing a new riser next
      to existing and extending to addition.

                                   EXHIBIT "B"
<PAGE>
May 31, 2001                                                            Page Two

SCOPE OF WORK (CONTINUED):

11)   We will add new topping to existing paving on the north side of the
      existing building.

12)   We have included all required piping and catch basins to direct all site
      water to the storm water system.

12)   Building permit, State approval and related architectural fees.

13)   Mechanical and electrical engineering for items included in this proposal
      will be performed by subcontractors.

THE FOLLOWING ITEMS ARE EXCLUDED FROM THIS PROPOSAL:

1)    Removal/reinstallation of all equipment within addition area.

2)    Removal of existing exterior wall at addition tie-in.

3)    Concrete floor sealer/coatings.

4)    Concrete foundations for owner furnished equipment.

5)    Painting of pre-engineered building, exposed plumbing, sprinkler, HVAC &
      electrical work, and interior concrete block.

6)    Interior/exterior fencing.

7)    Pre-finished interior liner panel @ pre-engineered building.

8)    Trench drains/floor drains @ manufacturing area.

9)    Water supply for owner furnished equipment.

10)   Exhaust fans/louvers and make-up air for manufacturing area.

11)   Exhaust/dust collection for owner furnished equipment.

12)   Power requirements for owner furnished equipment.

13)   Security System.

14)   Voice, data and telephone systems.

15)   Lightning protection.

16)   All plumbing construction.

17)   Any items not specifically mentioned in above Scope of Work.

                                EXHIBIT "B" CONT.
<PAGE>
                    [SITE PLAN DRAWING NO. S-1 APPEARS HERE]

                                   Exhibit "C"
<PAGE>
                          [LETTERHEAD FOR MODAL, INC.]

July 11, 2001                                               VIA FAX 724/733-2880

AMI Doduco
Murry Corporate Park
1003 Corporate Drive
Export, PA  15632

Attention:  Fred Nincke

         RE:  FIRST & SECOND FLOOR OFFICE RENOVATIONS, REVISION #2

Dear Fred:

      Please review the following proposal for renovations to the First and
Second Floors of your Murry Corporate Park Facility:

A)    EXECUTIVE AREA:

1)    New office walls as shown on our drawing A-101. Walls to be constructed of
      metal studs, 1/2" gypsum board with 3" sound insulation. We will paint and
      wallpaper the new walls, strip and repaper the existing walls for Seven
      (7) new offices and 80 LF +/- of hallway.

2)    New ceiling tile and grid in Four (4) offices, re-work ceiling to match in
      new hallway.

3)    New carpet in Six (6) offices and 80 LF+/- of hallways. Existing base to
      remain. Patch wood base in hall, wood base in Four (4) offices (reuse
      existing where possible).

4)    We will reuse existing doors where possible and supply new as required.

5)    Sprinkler system will be reworked as required.

6)    Electrical construction will include:

      a)    Install approx. Twenty-Five (25) duplex receptacles.

      b)    Four (4) data stubs.

      c)    Four (4) single pole switches.

      d)    Two (2) three-way switches.

      e)    Six (6) new light fixtures.

      f)    Relocate Ten (10) light fixtures.

7)    HVAC construction includes reworking existing system as required. We will
      balance the existing system in this area as close as possible with
      existing equipment.

8)    PA Dept. of Labor & Industry approval and local occupancy permit.

TOTAL COST FOR RENOVATIONS TO EXECUTIVE AREA:  $43,400.00

                                   EXHIBIT "D"
<PAGE>
July 11, 2001
Attention: Fred Nincke                                                  Page Two

RE:  FIRST & SECOND FLOOR OFFICE RENOVATIONS, REVISION #2

B)    FIRST FLOOR OFFICE - SOUTH:

1)    New office walls for Conference Room and open Office Area as shown on our
      Drawing A-101 to be constructed of metal studs, 1/2" Durasan (vinyl
      covered gypsum) with 3" sound insulation.

2)    Rework ceiling to match.

3)    New carpet in new offices, existing offices and hallway. Existing rubber
      base to remain. New rubber base as required. Patch VCT in open office
      area.

4)    We will re-use existing doors where possible and supply new as required.

5)    Sprinkler system to be reworked as required.

6)    Electrical construction will include the following:

      a)    Install approximately (29) duplex receptacles.

      b)    (8) Data stubs.

      c)    (3) Single pole switches.

      d)    (4) Three-way switches.

      e)    Relocate existing light fixtures.

7)    HVAC to be reworked and balanced as close as possible with existing
      equipment.

8)    PA Dept. of Labor & Industry approval and local occupancy permit.

TOTAL COST FOR RENOVATIONS TO FIRST FLOOR OFFICE - SOUTH:  $39,008.00

C)    SECOND FLOOR RENOVATIONS:

1)    Construction of One (1) 15' x 29' room with 6' opening (no door). Walls
      will be constructed of similar material as adjacent stud walls.

2)    Cut Three (3) openings in existing walls, trim with Durasan.

3)    Electrical construction includes:

      a)    Install (28) 120-volt receptacles.

      b)    Install (5) data stubs.

      c)    Relocate (4) light fixtures.

      d)    Install (4) new light fixtures.

      e)    Install (1) 3-phase 200-amp panel adjacent to the existing panel.
            This panel will be served from the existing feeder. This work will
            require a power outage of approximately four to five hours.

                                EXHIBIT "D" CONT.
<PAGE>
July 11, 2001
Attention: Fred Nincke                                                Page Three

RE:  FIRST & SECOND FLOOR OFFICE RENOVATIONS, REVISION #2

      C)    SECOND FLOOR RENOVATIONS (CONTINUED):

      4)    We will patch existing VCT as required with material furnished by
            AMI.

NOTE: This area includes no work on ceilings, sprinkler or HVAC.

TOTAL COST FOR SECOND FLOOR RENOVATIONS:  $11,284.00

THE FOLLOWING ITEMS ARE EXCLUDED FROM THIS PROPOSAL:

      1)    Moving or replacing any furniture or equipment. We will require free
            and clear access to work area.

      2)    Any new HVAC equipment required to balance system.

      We will require access to each area in its entirety to allow work progress
at a reasonable pace. We will work with you to make this renovation move
smoothly and disturb your operations as little as possible.

      This proposal is firm for a period of Thirty (30) Days, afterwhich Modal,
Inc. reserves the right to withdraw it for re-evaluation made necessary by
modifications to labor and/or material cost increases.

      Thank you for the opportunity to provide this proposal. If you have any
questions, please give me a call. If acceptable, please issue a purchase order,
or sign, date and return a copy of this letter.

                                        Sincerely yours,

                                        MODAL, INC.

                                        /s/ Michael E. Dilla

                                        Michael E. Dilla
                                        Project Manager

cc:  Job File

Accepted By: /s/ Gunther Hehn
            ---------------------------------------------

Name/Title: Gunther Hehn, VP & Segment Controller
           ----------------------------------------------

Date: July 27, 2001
     ----------------------------------------------------

                                EXHIBIT "D" CONT.
<PAGE>
ALL that certain lot or parcel of land situate in the Municipality of
Murrysville, Westmoreland County, Pennsylvania, being more particularly bounded
and described as follows:

BEGINNING at a point on the Northerly line of a private fifty (50) foot roadway
known as Corporate Drive, at corner of other lands of Ridilla-Delmont, being
Parcel 2 of the Murry Corporate Park, and which was previously leased by
Ridilla-Delmont to EPI Architectural Systems, Inc., pursuant lease, a memorandum
of which was dated May 21, 1986, and duly recorded in the Office of the Recorder
of Deeds of Westmoreland County in Deed Book Volume 2669, page 267. Thence from
said point of beginning along line of Parcel 2, North 39(degree) 30' West, 736.6
feet to a point on other lands of Cornerstone Ministries, Inc.; thence along
line of said Ministries, North 51(degree) 54' 29" East, 353.11 feet to a point;
thence through other lands of Ridilla-Delmont, South 39(degree) 30' East, 727.92
feet to a point on the Northerly side of Corporate Drive; thence along the
Northerly line of said Corporate Drive, South 50(degree) 30' West, 353.00 feet
to a point, the place of beginning.

TOGETHER with the right to use Corporate Drive, a private roadway fifty (50)
feet in width as the same abuts on the Southerly side of the above described
parcel and extends from Township Road 706 on the West, for a distance of 663
feet, more or less, on a line North 50(degree) 30' East from said Township Road
706, and terminating on the Easterly side of the above described parcel.

THE ABOVE described parcel is in accordance with Plan of Survey of Richard F.
Territ, Registered Surveyor, dated July 21, 1987.

                                   EXHIBIT "A"
<PAGE>
      Council: EDWARD W. YODER, President - RICHARD P. KOLE, Vice President
                            - JAMES G. EARHART, SR.
    COLLEEN LLOYD - J.M. HALL, JR. - WILLIAM P. YANT, JR. - ROBERT J. BROOKS

                           MUNICIPALITY OF MURRYSVILLE
               "First Home Rule Community in Westmoreland County"

      P.O. BOX 127                                        BETTY J. HOOVER, Mayor
 MURRYSVILLE, PA. 15668
                                                BETSY AIKEN, Chief Administrator

 2885 SCHOOL ROAD SOUTH
   MUNICIPAL BUILDING
R.D. 3, EXPORT, PA. 15632

   PHONE (412) 327-2100

                                 October 7, 1991

      Attn:  Joe Comcamnom
      Ridilla-Delmont
      P.O. Box 472
      Latrobe, PA  15650

                       RE: Advanced Metallurgy, Inc.

      Dear Mr. Comcamnom:

            I am writing to you to confirm our conversation in the office today
      regarding the certificate of occupancy, to be issued by the Municipality
      of Murrysville in regards to the old David Weiss Building.

            Your proposal for the new type of business to be located in this
      building is a permitted use in the M-1 Zoning District of the Murry
      Corporate Industrial Park.

            Upon completion of the renovations a certificate of occupancy will
      be issued by the Municipality of Murrysville.

            Should you have any further questions regarding this occupancy, do
      not hesitate to contact this office between the hours of 8:00 a.m. and
      5:00 p.m.

                                        Respectfully,

                                        /s/ Alan D. Latta

                                        Alan D. Latta
                                        Code Enforcement Officer

      ADL/rg

      cc:  File

                                   Exhibit "B"
<PAGE>
                        GUARANTY AND SURETYSHIP AGREEMENT

      THIS GUARANTY AND SURETYSHIP AGREEMENT ("Agreement"), dated as of
October 15, 1991, and given by TECHNITROL, INC., a corporation having a
principal office or place of business at 1210 Northbrook Drive, Suite 385,
Trevose, PA 19053 (hereinafter "Guarantor"), and delivered by Guarantor to
RIDILLA-DELMONT, a Pennsylvania Limited Partnership (hereinafter called
"Landlord").

                          W I T N E S S E T H  T H A T:

      WHEREAS, concurrently herewith, Advanced Metallurgy, Inc., a Corporation
(hereinafter called "Tenant") has entered into a Lease (hereinafter "Lease")
with Landlord under which Tenant will lease premises located in the municipality
of Murrysville, Westmoreland County, Pennsylvania, all as described in the Lease
and all as in accordance with the terms of the Lease; and

      WHEREAS, Guarantor is the sole stockholder and desires to secure the
obligations of the Tenant under the Lease in the manner hereinafter set forth.

      NOW, THEREFORE, for and in consideration of the grant of the Lease unto
Tenant, and other good and valuable consideration, receipt of which being
acknowledged hereunder, and intending to be legally bound hereby, Guarantor
covenants and agrees as follows:

                                   ARTICLE I

      Section 1.01. Without limitation or restriction upon any of the other
covenants undertaken by Guarantor in this Guaranty and Suretyship Agreement
(hereinafter "Agreement"), Guarantor hereby:

      (a) unconditionally and irrevocably guarantees and becomes surety to the
Landlord: (i) for the due and punctual payment of all rents and other payment
obligations due Landlord or others by Tenant under the Lease; and (ii) for the
due and punctual performance of all obligations of Tenant under the Lease as
otherwise set forth in the Lease; and

      (b) in the event of non-payment and/or non-performance by Tenant,
covenants with Landlord to pay punctually the obligations stated in (a)(i) above
in United States currency as and when the same become payable, and to perform
fully and faithfully the obligations referred to in (a)(i) above, and to pay all
the expenses which may be incurred by Landlord, including but not limited to
reasonable Attorney's Fees and expenses, in its efforts, required or otherwise,
to collect and/or enforce performance of any or all of such obligations or in
enforcing any right hereunder.

                                   ARTICLE II

      Section 2.01. Guarantor expressly: (i) waives any action taken or omitted
in reliance hereon and any presentment, demand, protest or notice of any kind,
and (ii) agrees that the Lease may be modified, amended and supplemented in any
manner, including the renewal or extension thereof without the consent of
Guarantor, and (iii) agrees that no such modification, amendment,

                                   Exhibit "C"
<PAGE>
renewal or extension, nor any other indulgence, shall release, affect or impair
the liability of Guarantor created under this Agreement.

      Section 2.02. The obligations of Guarantor hereunder shall be absolute and
unconditional and shall remain in full force and effect with regard to and shall
not be released, discharged or in any way affected by: (i) any amendment or
modification of or supplement to the Lease; (ii) any bankruptcy, insolvency,
arrangement, composition, assignment for the benefit of creditors or similar
proceeding commenced by or against the Tenant; (iii) any failure to perfect or
continue perfection of, or release or waiver of, any rights given to the
Landlord in any property as security for the performance of any of the Tenant's
obligation under the Lease; (iv) the dissolution of the Tenant; (v) any defense
that may arise by reason of the failure of the Landlord to file or enforce a
claim against the estate of the Tenant in any bankruptcy or other proceeding;
(vi) the voluntary or involuntary liquidation, dissolution, sale of all or
substantially all of the property of the Tenant, marshaling of assets and
liabilities or other similar proceeding affecting the Tenant or any of its
assets; (vii) the release of the Tenant from performance or observance of any of
the agreements, covenants, terms or conditions contained in the Lease by
operation of law; or (viii) any sale or other transfer of any of the property or
assets of the Tenant.

      Section 2.03. The obligations of Guarantor hereunder may be enforced
notwithstanding any other right or remedy which Landlord may have against the
Tenant or any other person or entity. It shall not be necessary to the
enforcement of any of the obligations of the Guarantor hereunder that any rights
or remedies of Landlord against the Tenant or others, or against any property
taken as security for any of the payments due under the Lease, be pursued to any
extent whatever. This Agreement constitutes an agreement of suretyship as well
as of guaranty, and Lender may pursue its rights and remedies under this
Agreement and under the Lease in whatever order, or collectively, and shall be
entitled to payment and performance hereunder notwithstanding the terms of the
Lease and notwithstanding any action taken by Landlord or inaction by Landlord
to enforce any of its rights or remedies against any other person, entity or
property whatsoever.

      Section 2.04. Except as to any rights the Guarantor may have against the
Tenant for any payments made by that Guarantor, including without limitation,
the right of subrogation, reimbursement, exoneration, contribution and
indemnity, the Guarantor further hereby waives, surrenders and agrees not to
claim or enforce: (i) any right of subrogation, reimbursement, exoneration,
contribution or indemnity with respect to any right or claim of any nature
whatsoever of the Landlord against the Tenant or any other person arising under
the Lease (whether arising directly or indirectly, by operation of law, contract
or otherwise), or (ii) any right to require the marshaling of any assets of the
Tenant.

                                  ARTICLE III

      Section 3.01. The Guarantor hereby represents, warrants and certifies that
any representations and warranties made by the Guarantor to the Landlord or its
agents are true and correct on the date hereof.

      Section 3.02. This Guaranty has been duly and validly executed and
delivered by Guarantor and constitutes legal, valid and binding obligations of
the Guarantor, enforceable in

                                       2
<PAGE>
accordance with the terms hereof, except as the enforceability hereof may be
limited by bankruptcy, insolvency or other similar laws of general application
affecting the enforcement of creditors' rights.

      Section 3.03. The Guarantor Warrants that neither (a) the execution and
delivery of this Guaranty, (b) the consummation of the transactions herein
contemplated, nor (c) the performance of or compliance with the terms and
conditions hereof will (1) violate any law, the violation of which could have a
material adverse effect upon Guarantor; or (2) conflict with or result in a
breach of or default under any agreement or instrument to which the Guarantor is
a party, which breach, violation or default would have a material adverse effect
upon Guarantor.

      Section 3.04. There is no pending or, to the best knowledge of Guarantor,
threatened proceeding by or before any official body against or affecting the
Guarantor which, if adversely decided, would have a material adverse effect on
the business, operations or conditions, financial or otherwise, of Guarantor or
on the ability of the Guarantor to perform its obligations under this Guaranty.

      Section 3.05. The Guarantor hereby covenants to Landlord that in the event
that at any time during which this Guaranty is in effect, its stock is no longer
is traded on the open market, that within thirty (30) days after written request
from Landlord:

      (a) Guarantor shall furnish to Landlord its most recent annual financial
statement, and other information as may be reasonably required by Landlord.

      (b) Nothing contained within the financial statements required under
Section 3.05(a) shall be construed in any matter to constitute a default of this
Guaranty; and provided further, that Landlord by accepting the financial
statements will covenant that neither the financial statements nor any terms
thereof shall be disclosed by Landlord for any purpose without the prior written
consent of the Guarantor.

                                   ARTICLE IV

      Section 4.01. If payment of any portion of the amounts due by Tenant under
the Lease is made by Tenant or Guarantor, the liability of Guarantor hereunder
shall continue and remain in full force and effect, if all or any part of said
payment is recovered as a preference or fraudulent transfer under any applicable
bankruptcy or insolvency law. If a default shall occur and be continuing under
the Lease, and declaration of default or acceleration under or with respect to
the Lease at such time shall be prevented by reason of the pendency against
Tenant of a case or proceeding under any bankruptcy or insolvency law, the
Guarantor agrees that, for purposes of this Agreement and the respective
obligations hereunder, the provisions of the Lease shall be deemed to have been
declared in default and accelerated with the same effect as if the Lease had
been declared in default and accelerated in accordance with the terms thereof,
and the Guarantor shall forthwith pay any amounts then due and owing and perform
their other obligations hereunder without further notice or demand. In the event
of Bankruptcy of the Tenant, and thereafter Tenant or the Trustee in Bankruptcy
should determine that the Lease should be assumed, then the same shall be
considered a cure of the default.

                                       3
<PAGE>
      Section 4.02. Landlord and Guarantor agree that the laws of the
Commonwealth of Pennsylvania shall apply to this Guaranty, and that in the event
of non-payment under Section 4.01, Landlord may bring an action against
Guarantor for the amount of such non-payment in any Court of record in
Pennsylvania; and Guarantor does hereby submit to the jurisdiction of the same.
In the event of judgment thereafter, Guarantor waives all exemptions from levy
and sale of any property that now is or hereafter may be exempted by law.

      Section 4.03. If Landlord employs counsel to enforce this Agreement by
suit or otherwise, Guarantor will reimburse the Landlord, upon demand, for all
expenses incurred in connection therewith (including, without limitation,
Reasonable Attorneys' Fees), only if suit is actually instituted, and Landlord
thereafter is the prevailing party.

      Section 4.04. The Guarantor irrevocably: (a) agrees that Landlord, its
successors and assigns, may bring suit, action or other legal proceedings
arising out of this Agreement or the transactions contemplated hereby in the
court of the Commonwealth of Pennsylvania in Westmoreland County, Pennsylvania
or the courts of the United States for the Western District of Pennsylvania; (b)
consents to the jurisdiction of each such court in any such suit, action or
proceeding; and (c) waives any objection which Guarantor may have to the laying
of the venue of any such suit, action or proceeding in any of such courts.

                                   ARTICLE V

      Section 5.01. This Agreement shall be construed and enforced in accordance
with, and the rights of the parties shall be governed by, the laws of the
Commonwealth of Pennsylvania, and any Federal laws that may apply.

      Section 5.02. No failure or delay on the part of the Landlord in
exercising any of its rights, power or privileges under this Agreement shall
operate as a waiver thereof, nor shall any single or partial exercise of any
right, power or privilege hereunder preclude any other future exercise thereof
or the exercise of any other right, power or privilege. The rights and remedies
of the Landlord under this Agreement are cumulative and not exclusive of any
rights or remedies which the Landlord would otherwise have under the Lease.

      Section 5.03. The provisions of this Agreement shall be binding upon the
Guarantor, its respective administrators, successors and assigns, and shall
inure to the benefit of the Landlord, its successors and assigns.

      Section 5.04. This Agreement shall not be amended, modified, waived,
changed, discharged or terminated except by an instrument in writing signed by
the party against whom enforcement of such amendment, modification, waiver,
change, discharge or termination is sought.

      Section 5.05. All notices, requests, demands, directions and other
communications (collectively "notices") under the provisions of this Agreement
shall be in writing (including facsimile communication) unless otherwise
expressly permitted hereunder and shall be sent by United States Certified or
Registered Mail (return receipt requested), or First Class Express Mail, or by
facsimile, in all cases with charges prepaid, and any such properly given notice
shall be effective when received. All notices shall be sent to the applicable
party addressed, if to the

                                       4
<PAGE>
Landlord at P.O. Box 472, Latrobe, Pennsylvania 15650, Attention: Joseph
Concannon, and, if to Guarantor, at 1210 Northbrook Drive, Suite 385, Trevose,
Pennsylvania 19053, Attention: President. Provided that either of the above
shall have the right by written direction to all the other parties to this
Agreement to change the address for notices hereunder.

      Section 5.06. If any term or provision of this Agreement or the
application thereof to any person or circumstance shall to any extent be invalid
or unenforceable, the remainder of this Agreement, or the application of such
term or provision to person or circumstances other than those as to which it is
invalid or unenforceable, shall not be affected thereby, and each term and
provision of this Agreement shall be valid and enforceable to the fullest extent
permitted by law.

      Section 5.07. This Agreement may be executed in any number of counterparts
and by the different parties hereto on separate counterparts, each of which,
when so executed, shall be deemed an original, but all such counterparts shall
constitute but one and the same instrument.

      Section 5.08. This Agreement will remain in effect until fulfillment of
all of Tenant's obligations under the Lease; provided that if at any time during
the Term of the Lease, Guarantor divests itself of more than 50% of the
outstanding shares of Tenant, then this Guaranty shall terminate if, at the time
of the divestiture, Tenant or a substitute Guarantor if applicable, has a
consolidated net worth as determined by Generally Accepted Accounting Principles
equal to or in excess of Ten Million ($10,000,000) Dollars; and provided
further, that the minimum period for this Guaranty shall be five (5) years from
the date of this Agreement.

                                       5
<PAGE>
      IN WITNESS WHEREOF, Guarantor has executed and delivered this Agreement as
of the date first above written.

WITNESS:                                TECHNITROL, INC.

/s/ Valerie A. Miller                   /s/ James J. Rafferty, Jr
-----------------------------------     ----------------------------------------
                                        James J. Rafferty, Jr. - Vice President

      The Guaranty and Suretyship Agreement is accepted the day and year first
above written.

WITNESS:                                RIDILLA-DELMONT

/s/ Joseph Conconnon                    By: /s/ John M. Ridilla
-----------------------------------         ------------------------------------
                                            John M. Ridilla

/s/ Joseph Conconnon                        /s/ P. Richard Ridilla
-----------------------------------         ------------------------------------
                                            P. Richard Ridilla,
                                            General Partners

                                       6
<PAGE>
                               MEMORANDUM OF LEASE

      This Memorandum of Lease made and entered into this 15th day of October,
1991, by and between RIDILLA-DELMONT ("Landlord"), a Pennsylvania Limited
Partnership, having its principal office and place of business at P.O. Box 472,
Latrobe, Pennsylvania, and ADVANCED METALLURGY INCORPORATED ("Tenant"), a
Corporation, having an office and place of business at 1028 East Smithfield
Street, P.O. Box 91 Boston, McKeesport, Pennsylvania 15135-0091, and having an
additional office in the Commonwealth of Pennsylvania (after the Commencement
Date of this Lease) at Murray Corporate Park, Murrysville, Pennsylvania 15668.

                               W I T N E S S E T H

      WHEREAS, on the date hereof, Landlord and Tenant entered into a certain
Lease Agreement (hereinafter "Lease"); and

      WHEREAS, Landlord and Tenant are desirous of entering into this Memorandum
of Lease pursuant to the provisions of the Act of General Assembly of
Pennsylvania of June 2, 1959, P.L. 454.

      NOW, THEREFORE, intending to be legally bound, Landlord and Tenant hereby
set forth the following information with respect to the Lease.

      1.    The name of the Landlord is RIDILLA-DELMONT.

      2.    The name of the Tenant is ADVANCED METALLURGY INCORPORATED.

                                   Exhibit "D"
<PAGE>
      3.    The parties set forth that the address of the parties are:

            RIDILLA-DELMONT             ADVANCED METALLURGY INCORPORATED
            P.O. Box 472                1028 East Smithfield Street
            Latrobe, PA  15650          McKeesport, PA  15135-0091
                 LANDLORD                            TENANT
                                        after possession:
                                            same as above.

      4.    The date of the Lease is the date hereof.

      5.    The description of the Leased Premises in the form set forth in the
            Lease is as set forth in Exhibit "A", attached hereto.

      6.    The date of the commencement of the term of the Lease is November 1,
            1991.

      7.    The term of the Lease begins on the Commencement Date and terminates
            on the last day of the one hundred twentieth (120th) full month
            thereafter.

      8.    Tenant has no right or option to extend the Lease Term.

      9.    Landlord may as of the date hereof, or at any time subsequent
            thereto, assign the Lease and all rentals thereunder to Johnstown
            Bank and Trust Company, as security for payment of indebtedness of
            Landlord unto Johnstown Bank and Trust Company.

      IN WITNESS WHEREOF, the undersigned Landlord and Tenant hereby execute
this Agreement as of the day and year first above written.

Attest:                                 RIDILLA-DELMONT

/s/ Joseph Conconnon                    /s/ John M. Ridilla
-----------------------------------     ----------------------------------------
                                        General Partner

/s/ Joseph Conconnon                    /s/ Richard P. Ridilla
-----------------------------------     ----------------------------------------
                                        General Partner

Attest:                                 ADVANCED METALLURGY INCORPORATED

/s/ Valerie A. Miller                   By: /s/ James J. Rafferty, Jr.
-----------------------------------         ------------------------------------
                                            James J. Rafferty, Jr. - President

                                       2
<PAGE>
COMMONWEALTH OF PENNSYLVANIA   )
                               )        SS:
COUNTY OF WESTMORELAND         )

      Before me, a Notary Public, the undersigned authority, personally appeared
JOHN M. RIDILLA and P. RICHARD RIDILLA, the General Partners of RIDILLA-DELMONT,
a Pennsylvania Limited Partnership, being known to be (or satisfactorily proven)
to be the persons signing the within Memorandum of Lease.

      WITNESS my official hand and seal this 15th day of October, 1991.

                                        /s/ Darlene L. Hans
                                        ----------------------------------------
                                        [SEAL]

COMMONWEALTH OF PENNSYLVANIA   )
                               )        SS:
COUNTY OF ALLEGHENY            )

      Before me, a Notary Public, the undersigned authority, personally appeared
James J. Rafferty, Jr. - President, of ADVANCED METALLURGY INCORPORATED, being
known to be (or satisfactorily proven) to be the President of the said
Corporation, being authorized to do so and that he signed the within Memorandum
of Lease for the purposes set forth therein.

      WITNESS my official hand and seal this 15th day of October, 1991.

                                        /s/ Darlene L. Hans
                                        ----------------------------------------
                                        [SEAL]<PAGE>
                                                                    Exhibit 10.7

                                  AMENDMENT TO
                           INCENTIVE COMPENSATION PLAN

            The Technitrol, Inc. Incentive Compensation Plan (the "Plan") is
hereby amended as follows:

            1.    The first sentence of Section 4(b) of the Plan shall be
deleted in its entirety and replaced with the following:

            "To the extent that shares of Common Stock of the Company are used
as incentives under the Plan, the aggregate number of shares, on a cumulative
basis, which may be issued under the Plan shall not exceed 4,900,000, as
appropriately adjusted in the event of one or more stock split-ups or
split-downs, a combination of shares or recapitalizations, or by reason of stock
dividends."

            2.    The first sentence of Section 7 of the Plan shall be deleted
in its entirety and replaced with the following:

            "The Plan will terminate on the earliest of (1) the date of
termination specified in any resolution which may be adopted by the Board of
Directors; or (2) the granting of the maximum number of shares of Common Stock
available under the Plan, as amended from time to time; or (3) December 31,
2011, the stated termination date."

            3.    Except as expressly set forth in this Amendment to the Plan,
the Plan is hereby ratified and confirmed without modification.

            4.    The effective date of this Amendment to the Plan shall be
February 13, 2001.
<PAGE>
                           INCENTIVE COMPENSATION PLAN
                                       OF
                                TECHNITROL, INC.

            An Incentive Compensation Plan ("Plan") is hereby adopted for the
key employees of Technitrol, Inc. ("Company") and its subsidiaries effective as
of the 1st day of January, 1981.

1.    Purposes.

            The Company's Plan is intended to provide a method whereby key
employees ("Employees") of the Company and its subsidiaries who are largely
responsible for the special services of planning, management, growth and
protection of the business, may be offered incentives in addition to those of
current compensation and future pensions to continue in the service of the
Company and all of its stockholders. The Plan is also intended to enable the
Company to obtain and retain the services of Employees by providing them with
such incentives as may be provided upon the terms and conditions hereinafter set
forth.

2.    Administration.

            This Plan shall be administered by a committee ("Committee")
consisting of three directors to be appointed by the Board of Directors, none of
whom shall be employees of the Company or its subsidiaries or otherwise entitled
to participate under this Plan. The Committee shall interpret the Plan and to
the extent and in the manner contemplated herein, it shall exercise the
discretion granted to it as to the determination of who shall participate in the
Plan and the nature and extent of the incentives granted to
<PAGE>
each participant and shall also adopt such rules and regulations for the
administration of the Plan as it deems advisable.

3.    Eligible Employees.

            Employees shall mean (i) executive employees of the Company and its
subsidiaries, (ii) key employees of each of the operating divisions and
subsidiaries of the Company in the areas of sales and marketing, engineering
and technical design, manufacturing, quality assurance, and financial, and
(iii) such other employees in recognition of outstanding performance or unique
contributions of ideas or inventions, as an incentive to employment, or for
such other reasons deemed appropriate by the Committee. Employees shall be
selected by the Committee for participation. No member of the Board of
Directors of the Company may participate in the Plan unless he is also an
Employee of the Company or its subsidiaries. A member of the Committee may not
participate.

4.    Types of Incentives.

            The Committee shall have the authority to develop and implement
forms of incentive compensation, which may be awarded to a single Employee or
group of Employees, in the manner and in the amounts determined by the
Committee, it being the purpose and intent of the Plan to afford the Committee
the greatest flexibility in providing incentives to management. Such incentive
compensation may include (but shall not necessarily be limited to) restricted
stock grants, performance unit shares, and stock appreciation rights, subject to
the following conditions and limitations:

            (a)   The types of incentives shall be chosen with regard to their
utility for inducing longer-term service (three years or more) to the Company on
the part of Employees.

            (b)   To the extent that shares of Common Stock of the Company are
used as incentives under the Plan, the aggregate number of shares, on a
cumulative basis, which may be issued under the Plan shall not exceed 100,000 as
appropriately adjusted in the event of one or more stock split-ups or
split-downs, a combination of shares or

                                      -2-
<PAGE>
recapitalizations, or by reason of stock dividends. Such shares shall be made
available, at the discretion of the Board of Directors, either from authorized
but unissued shares of Common Stock or from shares reacquired by the Company,
including shares purchased on the open market. If, prior to the termination of
the Plan, shares issued under the Plan have been returned to the Company by
virtue of any restrictions imposed by the Committee, such shares shall again
become available for issuance under the Plan.

            (c)   Performance goals developed under the Plan, if any, shall be
chosen on a long-term basis.

5.    Special Provisions Relating to Stock Incentives.

            The Committee shall have the authority to impose such restrictions,
terms and conditions upon any grant of shares of Common Stock hereunder as it
may deem appropriate under the circumstances, including but not limited to,
restrictions on transfer. In addition, the Committee may impose restrictions
under the Securities Act of 1933, as amended, under the requirements of any
stock exchange upon which such shares are then listed, and under any Blue Sky or
state securities laws applicable to such shares. In order to enforce the
restrictions imposed upon shares hereunder, the Committee may cause a legend(s)
to be placed on any certificate(s) representing shares issued pursuant to this
Plan, which legend(s) shall make appropriate reference to the restrictions
imposed hereunder.

6.    Amendments.

            This Plan may be amended at any time by the Board of Directors of
the Company; provided, however, that no such amendment shall increase the
maximum

                                      -3-
<PAGE>
aggregate number of shares of Common Stock that may be issued pursuant to this
Plan without the approval of the shareholders of the Company.

7.    Termination.

            The Plan will terminate on the earliest of (1) the date of
termination specified in any resolution which may be adopted by the Board of
Directors; or (2) the granting of the maximum number of shares of Common Stock
available under the Plan, as amended from time to time; or (3) December 31,
1991, the stated termination date. The termination of the Plan, however, shall
not affect any restrictions previously imposed on any incentives granted
pursuant to the Plan.

8.    Successors and Assigns.

            The provisions of this Plan shall be binding upon all successors and
assigns of any Employee awarded incentives under this Plan, including, without
limitation, the estate of any such Employee and the executors, administrators or
trustees of such estate, and any receiver, trustee in bankruptcy or
representative of the creditors of any such Employee.

                                      -4-

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