Document:

Exhibit 10.1

                         FOUR OAKS BANK & TRUST COMPANY

                              AMENDED AND RESTATED
                              --------------------
                        SEVERANCE COMPENSATION AGREEMENT
                        --------------------------------

         THIS AGREEMENT is entered into as of this 22nd of February, 2008, by
and between FOUR OAKS BANK & TRUST COMPANY, a North Carolina banking corporation
(the "Bank"), and W. LEON HIATT, III ("Employee").
         WHEREAS, the Bank and Employee are parties to a Severance Compensation
Agreement dated October 10, 1994, which they wish to amend and restate as
provided herein;
         WHEREAS, the Bank considers the maintenance of a vital management group
to be essential to protecting and enhancing the best interests of the Bank and
its shareholders;
         WHEREAS, the Bank recognizes that, as is the case with many publicly
held corporations, there is a possibility of a change in control of the Bank,
and that the uncertainty and questions which such a possibility raise may result
in the departure or distraction of management personnel to the detriment of the
Bank and its shareholders;
         WHEREAS, the Bank's Board of Directors has determined that appropriate
steps should be taken (1) to reinforce and encourage the continued attention and
dedication of members of the Bank's management to their assigned duties without
distraction arising from the possibility of a change in control of the Bank and
(2) to dispel any concerns that Employee may have about taking an active part in
the defense against an inappropriate attempt to bring about a change in control
of the Bank; and
         WHEREAS, the purpose of this Agreement to assure Employee that, in the
event of termination of employment after a change of control (to the extent set
forth this Agreement), Employee will continue to receive compensation for a
period which should be sufficient for Employee to find other employment.
         NOW, THEREFORE, in consideration of the mutual agreements set forth in
this Agreement, the legal sufficiency and adequacy of which are hereby
acknowledged, the parties agree as follows:

<PAGE>

         1. Employment. Employee agrees that so long as he is employed by the
Bank, Employee shall devote his full-time efforts during normal business hours
to the business and affairs of the Bank and shall support decisions and
determinations of the Board of Directors and Bank policy including, but not
limited to, any decision or determination with respect to responding to an
approach or attempt to effect a Change in Control (as later defined).
         2.       Term.
                   (a) The term of this Agreement shall be for two (2) years
from the Effective Date unless sooner terminated upon:
                            (i) Employee's written  notice to the Bank that he
         is terminating this Agreement effective upon a specified date not less
         than one month after his notice is given;
                           (ii) Employee's death;
                           (iii) Employee's illness or other disability
         incapacitating Employee from performing his duties for six (6)
         consecutive months as determined in good faith by Chief Executive
         Officer, the Board of Directors of the Bank or a committee of the
         Board;
                           (iv) A determination by the Chief Executive Officer
         or the Board of Directors of the Bank that Employee is no longer a key
         executive employee and the delivery of notice to Employee of such
         determination and the termination of this Agreement. Such termination
         shall be effective upon the delivery of the notice or at a later date
         specified in the notice; provided, however, such determination shall
         not be made, and if made, shall have no effect, after a Change in
         Control;

                  (b) Unless this Agreement is terminated in accordance with
subparagraph 2(a), on each anniversary of the Effective Date of this Agreement,
the term of this Agreement automatically shall be extended for an additional
successive period of one year, unless either the Employee or the Bank shall give
written notice to the other at least three (3) months before such anniversary
date that the term of this Agreement shall not be extended.

<PAGE>

                  (c) In the event of a Change in Control of the Bank at any
time before the termination of this Agreement, the term of this Agreement shall
be automatically extended to the earlier of (i) a date two (2) years after the
date such Change in Control occurred and (ii) the occurrence of an event of
termination described in clause 2(a)(ii) or (iii).
                  (d) In the event of a Termination (as later defined) of
Employee's employment during the term of this Agreement, the term of this
Agreement shall be automatically extended until all obligations under the
Agreement are fully performed.
         3. Change in Control. For purposes of this Agreement, a "Change in
Control" means one or more of the following occurrences:
                  (a) A corporation, person or group acting in concert as
described in Section 14(d)(2) of the Securities Exchange Act of 1934, as amended
("Exchange Act"), holds or acquires beneficial ownership within the meaning of
Rule l3d-3 promulgated under the Exchange Act of a number of shares of voting
capital stock of the Bank which constitutes either (i) more than fifty percent
(50%) of the shares which voted in the election of directors of the Bank at the
shareholders' meeting immediately preceding such determination, or (ii) more
than thirty-three percent (33%) of the Bank's then outstanding shares entitled
to vote.
                  (b) A merger or consolidation to which the Bank is a party
(other than a pro forma transaction for a purpose such as changing the state of
incorporation or name of the Bank), if either (i) the Bank is not the surviving
corporation, or (ii) the directors of the Bank immediately before the merger or
consolidation constitute less than a majority of the Board of Directors of the
surviving corporation; provided, however, the occurrence described in clause (i)
shall not constitute a Change in Control if the holders of the Bank's voting
capital stock immediately before the merger or consolidation have the same
proportional ownership of voting capital stock of the surviving corporation
immediately after the merger or consolidation.
                  (c) All or substantially all of the assets of the Bank are
sold, leased, or disposed of in one transaction or a series of related
transactions.

<PAGE>

                  (d) An agreement, plan, contract, or other arrangement is
entered into providing for any occurrence which, as defined in this Agreement,
would constitute a Change in Control.
         4.       Termination Following Change in Control.
                  (a) Termination of Employee's employment after the occurrence
of a Change in Control ("Termination") entitles Employee to the benefits
described in Paragraphs 5 and 6, unless such Termination is (i) by the Bank for
cause or because of disability or (ii) because of Employee's death.
                  (b) "Cause" means: (i) the willful and continued failure by
Employee for a significant period of time to substantially perform his duties
with the Bank (other than any such failure resulting from his disability) after
a demand for substantial performance is delivered to Employee by the Bank's
Chief Executive Officer, Board of Directors, or a committee of the Board which
specifically identifies the manner in which the Chief Executive Officer or Board
of Directors believes that Employee has not substantially performed his duties;
(ii) the willful engaging by Employee in gross misconduct materially and
demonstrably injurious to the Bank or (iii) the conviction of Employee of any
crime involving fraud or dishonesty. No act, or failure or act, on Employee's
part shall be considered "willful" unless done, or omitted to be done, by
Employee, not in good faith and without reasonable belief that his action or
omission was in the best interests of the Bank. The burden of establishing the
validity of any Termination for cause shall rest upon the Bank.
         5. Benefits. In the event of Employee's Termination for any reason
except those set forth in clauses 4(a)(i) or (ii), the Bank shall pay Employee
as severance pay an amount equal to two (2) times Employee's most recent annual
compensation, including the amount of his most recent annual bonus at the time
of termination ("Severance Pay"). The Severance Pay shall be paid in twenty-four
(24) equal monthly installments without interest, commencing one month after
termination, unless and until the Employee obtains other full-time employment,
at which time the balance of the Severance Pay shall be paid within thirty (30)
days in a lump sum amount.

<PAGE>

         6. Other Benefits. In addition, in the event of Employee's Termination,
the Bank shall:
                  (a) Maintain in full force and effect, for twenty-four (24)
months after the date of Termination, or unless and until Employee obtains other
full-time employment, all life insurance, health (medical and dental),
accidental death and dismemberment and disability plans or programs in which
Employee is entitled to participate immediately prior to the date of Termination
and include Employee as a participant in such plans on the same terms as he
participated before Termination; provided that Employee's continued
participation is possible under the general terms and provisions of such plans
and programs. In the event that Employee's participation in any such plan or
program is barred, the Bank shall arrange upon comparable terms to provide
Employee with benefits substantially similar to those which he would be entitled
to receive under such plans and programs. At the end of the period of coverage,
Employee shall have the option to have assigned to him, at no cost and with no
apportionment of prepaid premiums, any assignable insurance policy owned by the
Bank and relating specifically to Employee.
                  (b) To the extent permitted by the applicable plan, pay
Employee in a lump sum (or otherwise as specified by Employee to the extent
permitted by the applicable plan) any and all amounts contributed to a Bank
pension or retirement plan (other than any nonqualified deferred compensation
plan) to which Employee is entitled under the terms of any such plan.
         7. No Duty to Mitigate. Employee shall not be required to mitigate the
amount of any payment provided for in this Agreement by seeking other employment
or otherwise, nor shall the amount of any payment or benefit as provided for be
reduced by any compensation earned by Employee as the result of employment by
another employer or by retirement benefits after the date of Termination, or
otherwise except as specifically provided in this Agreement.
         8. Miscellaneous.
                  (a) Limit on Effect. This Agreement shall have no effect on
any termination of Employee's employment before a Change in Control or after the
termination of this Agreement, or upon any termination of employment at any time
as a result of disability, retirement, or death, or as a result of Employee's
voluntary termination of this Agreement and, in such event, Employee shall
receive only those benefits to which Employee would have become entitled before
a Change in Control. After a change in Control and during its term, this
Agreement is in lieu of any other Bank severance policy involving cash payments,
but not in lieu of other Bank severance policies including, but not limited to,
those items provided in Paragraph 6. This Agreement does not entitle Employee to
employment for any term whatsoever.

<PAGE>

                  (b)      Successors.
                           (i) The Bank will require any successor (whether
         direct or indirect, by purchase, merger, consolidation or otherwise) to
         all or substantially all of the business or assets of the Bank to
         assume and agree to perform this Agreement in the same manner and to
         the same extent that the Bank would be required to perform if no such
         succession had taken place. Failure of the Bank to obtain such
         agreement before the effectiveness of any such succession shall entitle
         the Employee immediately to the benefits provided in Paragraphs 5 and 6
         hereof.
                           (ii) Employee may not assign this Agreement, but this
         Agreement shall inure to the benefit of and be enforceable by
         Employee's personal or legal representatives, executors,
         administrators, heirs, distributees, devisees and legatees. If Employee
         should die while any amounts would still be payable to Employee under
         this Agreement if Employee had continued to live, all such amounts,
         unless otherwise provided in this Agreement, shall be paid in
         accordance with the terms of this Agreement to Employee's devisee,
         legatee or other designee or, if there be no such designee, to his
         estate.
                  (c) Expenses. The Bank agrees that if Employee is entitled to
Severance Pay or other benefits under this Agreement and the Bank or its
survivor disputes the obligation to pay Severance Pay or other benefits and
Employee prevails, in whole or in part, the Bank or its survivor shall then
promptly pay or reimburse Employee for all expenses incurred by Employee in such
dispute, including, but not limited to, attorneys' fees and associated costs.

<PAGE>

                  (d) Notice. All necessary notices, demands, or requests
required or permitted under this Agreement shall be in writing and shall be
deemed to have been duly given when delivered in person or mailed by United
States certified mail, postage prepaid, to the parties at the addresses set
forth below or to such other address as either party may have furnished to the
other.
                  If to Bank:        Four Oaks Bank & Trust Company
                                     6144 U.S. 301 South
                                     Four Oaks, North Carolina 27524

                  If to Employee:    W. Leon Hiatt, III
                                     127 Windsor Green Drive
                                     Clayton, North Carolina  27527
                  (e) Modifications. No provisions of this Agreement may be
modified, waived or discharged unless such modification, waiver or discharge is
agreed to in writing signed by the Employee and the Bank. No waiver by either
party at any time of any breach by the other party of, or compliance with, any
condition or provision of this Agreement to be performed by such other party
shall be deemed a waiver of similar or dissimilar provisions or conditions at
the same or at any prior or subsequent time.
                  (f) Counterparts; Interpretation. This Agreement may be
executed in several identical counterparts, each of which when so executed shall
be deemed an original, but all such counterparts shall constitute one and the
same instrument. The validity, interpretation, construction, and performance of
this Agreement, shall be governed by the laws of the State of North Carolina.
The invalidity or unenforceability of any provision of this Agreement shall not
affect the validity or enforceability of any other provision of this Agreement,
which shall remain in full force and effect.

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

<PAGE>

                                             FOUR OAKS BANK & TRUST COMPANY

                                             By:      /s/ Nancy S. Wise
                                                      --------------------------
                                                      Authorized Officer

         ATTEST:

        /s/ Wanda Blow
        -----------------------------------
        Secretary

         [SEAL]

                                             /s/ W./ Leon Hiatt, III
                                             -----------------------------------
                                             W. LEON HIATT, III
                                             EmployeeExhibit 10.17

AMENDED
AND RESTATED CONSIGNMENT AGREEMENT

          This
AMENDED AND RESTATED CONSIGNMENT AGREEMENT made as of the 19th day
of November, 2007 by and between SOVEREIGN PRECIOUS METALS, LLC, a Rhode Island
limited liability company (“Consignor”) with offices at One Financial Plaza,
Providence, Rhode Island 02903; TECHNITROL, INC., a Pennsylvania corporation
with offices at 1210 Northbrook Drive, Suite 470, Trevose, Pennsylvania 19053
(“Customer”).

          This
Amended and Restated Consignment Agreement amends and restates that certain
Consignment Agreement, dated July 11, 2006 and amended and restated as of
October 23, 2007, by and among the Consignor, AMI Doduco, Inc. and the
Customer.

           1.          Commodities
Consigned; Insurance and Risk of Loss; Title. (a) Commodities consigned
hereunder will consist of: (i) gold bullion, minimum degree of fineness of
99.99% Unallocated Loco London, or mutually agreed upon fineness, form and
location, in bars of approximately 400 fine troy ounces each (“Gold”); (ii)
silver bullion, minimum degree of fineness of 99.99% in bars of approximately
5,000 fine troy ounces each (“Silver”); (iii) palladium bullion, minimum degree
of fineness of 99.95% Unallocated Loco Zurich, or mutually agreed upon
fineness, form and location, in bars of approximately 32.15 fine troy ounces
each (“Palladium”); and (iv) platinum bullion, minimum degree of fineness of
99.95% Unallocated Loco Zurich, or mutually agreed upon fineness, form and
location, in bars of approximately 32.15 fine troy ounces each (“Platinum”).
EXCEPT AS PROVIDED ABOVE, AND EXCEPT FOR A WARRANTY THAT CONSIGNOR SHALL HAVE
TITLE TO THE COMMODITIES AT THE TIME THAT CUSTOMER SHALL PURCHASE SUCH
COMMODITIES FROM CONSIGNOR AND WITHDRAW SUCH COMMODITIES FROM CONSIGNMENT AS HEREINAFTER
PROVIDED, CONSIGNOR MAKES NO REPRESENTATION OR WARRANTY OF ANY KIND, EXPRESS OR
IMPLIED, AS TO MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE OR ANY OTHER
MATTER, AND CONSIGNOR DISCLAIMS ALL SUCH WARRANTIES. Commodities shall be
consigned in amounts as requested by Customer from time to time. At no time
shall the value of consigned commodities exceed the lesser of: (i) $50,000,000
less the total amounts of the Borrower’s foreign exchange obligations to
Sovereign Bank; (ii) 12,000 fine troy ounces of Gold, 3,350,000 fine troy
ounces of Silver, 2,000 fine troy ounces of Palladium, and 1,000 fine troy
ounces of Platinum; (iii) such other limit as the parties may agree upon; or
(iv) such limit as Consignor may approve in its sole discretion (“Consignment
Limit”). 

          (b)          Each
delivery of commodities shall be at Customer’s expense and, if Customer shall
select the carrier for any such delivery, Customer shall bear the risk of any
loss by such carrier. Following the delivery of commodities to Customer, or to
such other location as may be agreed upon from time to time by the parties
hereto, Customer shall insure the commodities to their full value against all
risks of loss and shall, as between Consignor and Customer, accept all risk of
loss until their purchase or return to Consignor.

          (c)          Title
to consigned commodities shall remain in Consignor until commodities are
purchased and withdrawn from consignment. Commodities are deemed to be on
consignment until paid for in full, whereupon title to such commodities shall
pass to Customer.

          (d)          Customer
shall deliver to Consignor a letter certifying the names of persons (each an
“Authorized Representative”) authorized to transact consignment and other
transactions hereunder. Any person identifying himself or herself as an
Authorized Representative may effect transactions hereunder. Consignor shall
have no obligation to ascertain whether the person is in fact an Authorized
Representative or is in fact authorized to effect the transaction. Consignor
may verify any request for a transaction. Customer authorizes Consignor to
record all requests Consignor may receive from Customer or any person
purporting to act on behalf of Customer.

          (e)          Consignor
is obligated to engage only in transactions involving commodities in units,
fineness and quantities it customarily maintains in its inventory, but
Consignor may from time to time agree to other types of transactions.
Commodities in the possession or control of Customer or a third party for the
account of Customer shall constitute consigned commodities hereunder
notwithstanding such commodities: (i) are in alloyed form or contained in raw
materials, work in process or finished goods; (ii) are delivered to or credited
to the account of Customer by a third party in exchange for or in consideration
of commodities delivered by Consignor to such third party; or (iii) are sold by
Customer to Consignor and then consigned back to Customer.

          2.          Valuation.
For purposes of this Agreement: (a) the value of Gold, Palladium and Platinum
bullion shall be determined on the basis of the London Bullion Market
Association or the London Platinum and Palladium Market second fixing price for
such commodity on the valuation date or, if no price is available for such
date, then on the basis of said second fixing price on the next previous day
for which it is available; and (b) the value of Silver bullion shall be
determined on the basis of the London Bullion Market Association’s silver
fixing price for such commodity on the valuation date or, if no price is
available for such date, then on the basis of said published price for the
previous day for which such price was available. Should the London Bullion
Market Association or London Platinum and Palladium Market discontinue or alter
its practice of quoting a price for gold, silver, palladium or platinum as
applicable on any day for which such a price is necessary for the purposes
hereof, Consignor shall announce a substituted index commonly used in the trade
to become the method of valuation hereunder.

          3.          Payments
by Customer.

          (a)         During
such time as consigned commodities are consigned to Customer hereunder and
until the same are withdrawn from consignment and paid for in full by Customer
as hereinafter provided, Customer will pay to Consignor a fee computed daily on
the value of such consigned commodities at such rate or rates as Consignor
shall specify in writing to Customer, and as such rates may change from time to
time upon notice to Customer, such fee to be accrued on a daily basis and paid
to Consignor not later than the tenth (10th) day of each month. A
consignment fee calculated in accordance with this subparagraph shall be known
as a “Floating Consignment Fee”.

          (b)
         During
such time as consigned commodities are consigned to Customer hereunder and
until the same are withdrawn from consignment and paid for in full by Customer
as hereinafter provided and provided that no Event of Default (as hereinafter
defined) has occurred and is then continuing, instead of paying the Floating
Consignment Fee set forth above, Customer may elect to pay to Consignor a Fixed
Consignment Fee with respect to consigned commodities in accordance with the
following:

          (i)         Such
Fixed Consignment Fee shall be calculated for a certain specific quantity of
consigned commodities consigned to Customer for a certain specific Consignment
Period at a rate announced by Consignor from time to time upon the request of
Customer. The quantity and type of consigned commodities, and the Consignment
Period shall be selected by Customer and consented to by Consignor. Once the
specific quantity and type of consigned commodities and the specific
Consignment Period have been selected and the consignment fee determined, such
selections shall be irrevocable and binding on Customer and shall obligate
Customer to accept the consignment requested from Consignor in the amount and
for the Consignment Period specified.

          (ii)         The
Fixed Consignment Fee shall be accrued on a daily basis and paid to Consignor
not later than the tenth (10th) day of each month.

          (c)          At
such time as Customer shall request the consignment and delivery of consigned
commodities under this Agreement, it shall become obligated to pay to Consignor
a market premium per troy ounce as announced by Consignor at the time of such
consignment (“Market Premium”). Such payment is to be made within ten (10) days
after Customer’s receipt of Consignor’s monthly invoice by bank wire to a bank
of Consignor’s choice. At such time as Customer shall purchase and withdraw
consigned commodities from consignment under this Agreement, it shall become
obligated to pay to Consignor: (i) a purchase price computed in accordance with
Paragraph 2 hereof if such purchase is effected by Customer prior to 2:30 p.m.,
Greenwich Mean Time, on any Business Day; or (ii) such other purchase price as
shall be mutually agreed upon by Consignor and Customer (“Purchase Price
Payment”). The purchase of all consigned commodities bearing a Fixed
Consignment Fee shall take place on the last day of the Consignment Period
relating thereto. All Purchase Price Payments are to be made within two (2)
Business Days after such purchase by bank wire to a bank of Consignor’s choice,
provided, however, title to such consigned commodities shall not pass until the
making of such Purchase Price Payment. Consigned commodities shall be deemed to
have been purchased and withdrawn from consignment at such time as Customer
shall notify Consignor that it elects to purchase such consigned commodities
from Consignor.

          (d)          Customer
hereby agrees to pay upon demand: (i) interest on any Purchase Price Payment
not paid when due hereunder at a rate per annum equal to the floating Prime
Rate (as hereinafter defined) of Sovereign Bank (“Bank”), plus five percent
(5%), from the date of delinquency until payment in full; and

(ii) interest on any Consignment Fees, Market Premium
or any other amount due hereunder not paid when due hereunder at a rate per
annum equal to the floating Prime Rate of Bank, plus five percent (5%), from
the date of delinquency until payment in full. For the purposes hereof, the term
“Prime Rate” shall mean the variable per annum rate of interest so designated
from time to time by Bank as its prime rate. The Prime Rate is a reference rate
and does not necessarily represent the lowest or best rate being charged to any
customer. All payments made under this Agreement shall be made by Customer to
Consignor at the address of Consignor set forth above or at such other place as
Consignor may from time to time specify, in writing in lawful currency of the
United States of America in immediately available funds, without counterclaim
or setoff and free and clear of, and without any deduction or withholding for,
any taxes or other payments. If any payment hereunder becomes due on a day that
is not a Business Day, the due date of such payment shall be extended to the
next succeeding Business Day, and such extension of time shall be included in
computing interest and fees in connection with such payment. All payments shall
be applied first to the payment of all fees and other amounts due Consignor
(including Market Premiums but excluding the purchase price of commodities
hereunder and Consignment Fees), then to accrued Consignment Fees, and the
balance on account of the outstanding purchase price of commodities hereunder;
provided, however, that after the occurrence of an Event of Default, payments
will be applied to the obligations of Customer to Consignor as Consignor
determines in its sole discretion.

          (e)          Customer
may elect from time to time to convert any outstanding Floating Consignment Fee
consignment to a Fixed Consignment Fee consignment and to convert any
outstanding Fixed Consignment Fee consignment to a Floating Consignment Fee
consignment, provided, however, that: (i) with respect to any such conversion
of a Fixed Consignment Fee consignment into a Floating Consignment Fee
consignment, such conversion shall only be made on the last day of the
Consignment Period with respect thereto; provided, however, in the event of any
governmental action pursuant to Paragraph 3 (k) hereof, Customer may make a
conversion prior to the last day of any such Consignment Period; (ii) with
respect to any such conversion of a Floating Consignment Fee consignment to a
Fixed Consignment Fee consignment, Customer shall give Consignor at least two
(2) Eurodollar Business Days’ prior notice by telephone or by electronic mail
of the day on which such election is effective; and (iii) no consignment may be
converted into a Fixed Consignment Fee consignment when Consignor has declared
the existence of an Event of Default hereunder. Customer shall give to
Consignor telephonic notice (confirmed in writing by Customer) of its decision
to convert an outstanding consignment. All or any part of outstanding
consignments under this Agreement may be converted as provided herein. Each
such request shall be irrevocable by Customer.

          (f)          Any
Fixed Consignment Fee consignments may be continued as such upon the expiration
of a Consignment Period with respect thereto by giving to Consignor telephonic
notice (confirmed in writing by Customer) of Customer’s decision to continue an
outstanding consignment as such; provided, however, that no Fixed Consignment
Fee consignment may be continued as such when Consignor has declared the
existence of an Event of Default hereunder, but shall be automatically
converted to a Floating Consignment Fee consignment on the last day of the
first Consignment Period relating thereto ending during the continuance of such
Event of Default.

          (g)          In
the event that Customer does not notify Consignor of its election hereunder
with respect to any consignment, such consignment shall be automatically
converted to a Floating Consignment Fee consignment at the end of the
applicable Consignment Period.

          (h)          In
the event, prior to the commencement of any Consignment Period relating to any
Fixed Consignment Fee consignment, Consignor shall determine in good faith that
adequate and reasonable methods do not exist for ascertaining the Fixed
Consignment Fee that would otherwise determine the rate of interest to be
applicable to any Fixed Consignment Fee consignment during any Consignment
Period, Consignor shall forthwith give notice of such determination (which
shall be conclusive and binding on Customer) to Customer. In such event: (a)
any request for a Fixed Consignment Fee consignment shall be automatically
withdrawn and shall be deemed a request for a Floating Consignment Fee
consignment; (b) each Fixed Consignment Fee consignment will automatically, on
the last day of the then current Consignment Period thereof, become a Floating
Consignment Fee consignment; and (c) the obligations of Consignor to make Fixed
Consignment Fee consignments shall be suspended until Consignor determines that
the circumstances giving rise to such suspension no longer exist, whereupon
Consignor shall so notify Customer.

          (i)          Notwithstanding
any other provisions herein, if any present or future law, regulation, treaty or

 directive or in the interpretation or application
thereof shall make it unlawful for Consignor to make or maintain Fixed
Consignment Fee consignments, Consignor shall forthwith give notice of such
circumstances to Customer and thereupon: (a) the agreement of Consignor to make
Fixed Consignment Fee consignments shall forthwith be suspended; and (b) the
Fixed Consignment Fee consignments then outstanding shall be converted
automatically to Floating Consignment Fee consignments on the last day of each
Consignment Period applicable to such Fixed Consignment Fee consignments or
within such earlier period as may be required by law. 

          
(j)          Customer
shall indemnify Consignor and hold Consignor harmless from and against any
loss, cost or expense that Consignor may sustain or incur as a consequence of:
(a) default by Customer in payment of any Fixed Consignment Fee consignments as
and when due and payable (including, without limitation, as a result of
prepayment or late payment of the purchase price for the consigned commodities
or the acceleration of the consignment facility indebtedness pursuant to the
terms of this Agreement), which expenses shall include any such loss or expense
arising from interest or fees payable by Consignor to a consignor or lender of
commodities or funds obtained by Consignor in order to make or maintain its
Fixed Consignment Fee consignments; (b) default by Customer in taking a
consignment or conversion after Customer has given (or is deemed to have given)
its request therefore; and (c) the purchase of consigned commodities bearing a
Fixed Consignment Fee or the making of any conversion of any such consignment
to a Floating Consignment Fee consignment on a day that is not the last day of
the applicable Consignment Period with respect thereto, including interest or fees
payable by Consignor to a consignor or lender of commodities or funds obtained
by Consignor in order to make or maintain any such consignments.

          
(k)          If
any present or future applicable law, which expression, as used herein,
includes statutes, rules and regulations thereunder and interpretations thereof
by any competent court or by any governmental or other regulatory body or
official charged with the administration or the interpretation thereof and
requests, directives, instructions and notices at any time or from time to time
hereafter made upon or otherwise issued to Consignor by any central bank or
other fiscal, monetary or other authority (whether or not having the force of
law), shall:

          
(i)          If
Company’s action(s) cause subject Consignor to be subject to any tax (except
for taxes on income or profits), levy, impost, duty, charge, fee, deduction or
withholding of any nature with respect to this Consignment Agreement or this
consignment facility, or

          
(ii)         materially
change the basis of taxation (except for changes in taxes on income or profits)
of payments to Consignor of the principal of or the interest on this
consignment facility or any other amounts payable to Consignor under this
Consignment Agreement, or

          
(iii)        impose on Consignor
any other conditions or requirements with respect to this Consignment
Agreement, this consignment facility or any class of loans or commitments of
which this consignment facility forms a part; 

and the result of any of the
foregoing is, following the date hereof:

           (i)         to
increase the cost to Consignor of making, funding, issuing, renewing, extending
or maintaining this consignment facility, or

        
  (ii)         to
reduce the amount of principal, interest or other amount payable to Consignor
hereunder on account of this consignment facility, or

          
(iii)        to
require Consignor to make any payment or to forego any interest or other sum
payable hereunder, the amount of which payment or foregone interest or other
sum is calculated by reference to the gross amount of any sum receivable or
deemed received by Consignor for Customer hereunder; 

then, and in each such case, Customer will, upon
demand by Consignor, at any time and from time to time and as often as the
occasion therefore may arise, pay to Consignor such additional amounts as will
be sufficient to compensate Consignor for such additional cost, reduction,
payment or foregone interest or other sum.

          
(l)          Upon
the occurrence of any of the events set forth in Paragraph 3(i), Paragraph 3(j)
or Paragraph 3(k) hereof, Consignor shall provide to Customer a certificate
setting forth any additional

amounts payable pursuant thereto, together with a
brief explanation of such amounts.

          
4.          Maintenance
of Consignment Limit. If the value of commodities on consignment at any
time exceeds the Consignment Limit, Customer will promptly either (a) purchase
and withdraw from consignment (and make payment to Consignor as provided in
Paragraph 3), a quantity of consigned commodities which has an aggregate value
sufficient to result in the value of the remaining consigned commodities to be
less than the Consignment Limit, or (b) deliver to Consignor sufficient of such
consigned commodities to achieve the same result. Any such delivery shall be at
Customer’s expense and risk.

          
5.          True
Consignment. This Agreement shall provide for a true consignment and all
transactions hereunder shall constitute true consignments of commodities.

          
6.          Warranties.
Customer warrants and represents to Consignor (which warranties and
representations shall survive the execution of this Agreement and the delivery
of consigned commodities to Customer) that:

          
(a)       Customer
(i) is duly organized, validly existing and in good standing under the laws of
the Commonwealth of Pennsylvania; and (ii) has the corporate power and
authority to execute, deliver and perform this Agreement and to carry on
business as now conducted. The execution, delivery and performance by Customer
of the terms of this Agreement have been authorized by all requisite corporate
action and will not violate the charter or bylaws of Customer or any document
to which it is a party or by which it is bound. This Agreement constitutes the
legal, valid and binding obligation of Customer enforceable in accordance with
its terms.

          
(b)       No
Event of Default, as defined herein, and no event which, with the passage of
time or the giving of notice, would become an Event of Default, has occurred
and is continuing. No statement made by or on behalf of Customer herein or in
any writing furnished to Consignor contains an untrue statement of material
fact or omits any material fact necessary to make such statement not
misleading.

          
7.         Affirmative
and Negative Covenants. Customer covenants, from the date hereof until
payment and performance of all obligations of Customer hereunder, Customer
shall:

          
(a)       Do
all things necessary to keep in full force and effect its corporate existence;
and not dissolve or liquidate and not change its corporate name unless it has
provided Consignor with thirty (30) days prior written notice thereof.

          
(b)       Not
create, incur, assume or suffer to exist any mortgage, security interest,
pledge, lien or other encumbrance on any of the consigned commodities or on any
products or inventory which contains consigned commodities.

          (c)
       Should
the Customer fail to file annual financial statements within ninety (90) days
of the Customer’s fiscal year end, and/or fail to file quarterly financial
statements within thirty (30) day of the Customer’s financial quarter ends with
the Securities and Exchange Commission, then the Customer shall be required to
Furnish to Consignor: (i) within ninety (90) days after the end of each of
Customer’s fiscal years, a copy of Customer’s annual report, the financial
statements contained therein prepared by an independent certified public
accountant acceptable to Consignor, inclusive of consolidating financial
statements; (ii) within thirty (30) days after the Customer’s financial quarter
end(s) the financial statements contained therein prepared by an independent certified
public accountant acceptable to Consignor, inclusive of consolidating financial
statements; (iii) annual consolidating financial statements within ninety (90)
days after the end of each of Customer’s fiscal years, and (iv) such additional
information regarding the location and use of consigned commodities by Customer
as Consignor may reasonably request.

          
8.          Conditions
to Consignor’s Obligation to Consign. The obligation of Consignor to
deliver and/or consign commodities hereunder is subject to the following
conditions precedent: (a) the representations and warranties in Paragraph 6
shall be true and correct on and as of the date hereof and the date each
consignment is requested and is to occur; and (b) no Event of Default, nor any
event which upon notice or lapse of time or both would constitute an Event of
Default, shall have occurred and be continuing.

          
9.           Default.
In case of the occurrence of any one or more of the following events (each an
“Event of Default”):

          (a)          default
in the payment or performance of any of Customer’s material obligations or
agreements hereunder which, in the case of a performance default is not cured
within thirty (30) days after written notice of such default from Consignor; or

          (b)          any
representation or warranty made herein or in any document furnished in
connection with this Agreement shall prove to be false or misleading in any
material respect; or

          (c)          Customer
shall make an assignment for the benefit of creditors; file or suffer the
filing of any voluntary or involuntary petition under any chapter of the
Bankruptcy Code; apply for or permit the appointment of a receiver, trustee or
custodian of any of its property or business; become insolvent or suffer the
entry of an order for relief under Title 11, United States Code; or make an
admission of its inability to pay its debts as they become due; or

          (d)          the
occurrence of any material loss, theft or destruction of or damage to any of
the consigned commodities; or the occurrence of any attachment on any of the
consigned commodities; or

          (e)          the
occurrence of any Event of Default as defined in that certain Credit Agreement
dated as of October 14, 2005 (the “Credit Agreement”) by and among Customer,
certain subsidiaries of Customer, Bank of America, N.A. and the Lenders (as
defined in the Credit Agreement), as the same may be amended and/or amended and
restated from time to time, that causes any or all of the Obligations (as
defined in the Credit Agreement) to be immediately due and payable;

then in any such event (i) the obligations of
Consignor hereunder shall, at Consignor’s option, terminate, (ii) Customer
shall promptly return to Consignor all commodities theretofore consigned to but
not purchased and paid for by Customer, and (iii) all Customer’s obligations to
Consignor shall become and be immediately due and payable without presentment,
demand or notice, all of which are hereby expressly waived, notwithstanding any
credit or time allowed to Customer or any agreement to the contrary. Customer
shall, at Consignor’s request, immediately assemble all consigned commodities,
and Consignor may go upon Customer’s premises during normal business hours to take
immediate possession thereof. Customer shall pay all reasonable legal expenses
and attorneys’ fees incurred by Consignor in enforcing Consignor’s rights,
powers and remedies under this Agreement. No failure or delay on Consignor’s
part to exercise or to enforce any of its rights hereunder or to require strict
compliance with the terms hereof and no course of conduct on Consignor’s part
shall constitute a waiver or relinquishment of any rights hereunder.
Consignor’s recourse shall be limited to outstanding obligations, consignment
fees, any previously agreed upon outstanding invoices, and any reasonable legal
expenses incurred. 

          10.          Termination;
Return of Commodities. Consignor or Customer may terminate this Agreement
upon thirty (30) days prior written notice. Upon the giving of such notice or
at any time thereafter, Consignor may, at its option, suspend or terminate its
obligation to consign or deliver commodities hereunder. Upon termination of
this Agreement, Customer shall, within forty-eight (48) hours following the
request of Consignor, deliver to Consignor, at Customer’s expense and risk, any
commodities consigned but not purchased and paid for in full.

          11.          Expenses.
Customer shall pay on demand all reasonable expenses of Consignor in connection
with the preparation, default, collection, waiver or amendment of terms, or in
connection with Consignor’s exercise, preservation or enforcement of any of its
rights, remedies or options under this Agreement, including, without
limitation, reasonable fees of outside legal counsel; and the amount of all
such expenses shall, until paid, bear interest at the rate set forth in Section
3 hereof and be an obligation secured by any collateral. Consignor shall
provide prior notice to Customer as to any legal fees and related expenses that
will be charged to Customer for the preparation and/or negotiation of any
amendments to this Agreement or any other agreements relating to this
Agreement.

          12.          Additional
Definitions.

          “Business
Day” means each and every day other than Saturdays, Sundays and days on which

Consignor is closed by virtue of a national holiday or
a holiday in the State of Rhode Island.

          “Consignment
Period” means, with respect to the consignment of commodities based upon a
Fixed Consignment Fee, the period beginning on the Drawdown Date and ending on
the day which numerically corresponds to such date one, two or three months (or
such other period, if agreed to by the Consignor) thereafter (or, if such month
has no numerically corresponding day, on the last Eurodollar Business Day of
such month), as the Customer may select in its notice provided pursuant to
Section 3 hereof; provided, however, that:

	
 

	
 

	
 

	
      
          (a)
 Consignment Periods commencing on the same date for consignments of consigned
 commodities comprising part of the same consignment shall be of the same
 duration, and

	
 

	
 

	
 

	
     
          (b)
 if such Consignment Period would otherwise end on a day which is not a
 Eurodollar Business Day, such Consignment Period shall end on the next
 following Eurodollar Business Day; provided, however, that if such next
 following Eurodollar Business Day is the first Eurodollar Business Day of a
 calendar month, such Consignment Period shall end on the next preceding
 Eurodollar Business Day.

          “Drawdown
Date” means the date on which any consignment under this consignment facility
is made or is to be made and the date on which any consignment under this
consignment facility is converted or continued in accordance with Section 3
hereof.

          “Eurodollar
Business Day” means any day on which commercial banks are open for
international business (including dealings in dollar deposits) in London.

          “Fixed
Consignment Fee” means a consignment fee calculated in accordance with the
provisions of Paragraph 3(b) hereof.

          “Floating
Consignment Fee” means a consignment fee calculated in accordance with the
provisions of Paragraph 3(a) hereof.

      
    13.          Miscellaneous.
(a) The rights of Customer under this Agreement may not be assigned without the
prior written consent of Consignor. All covenants and agreements of Customer
contained herein shall bind Customer, its successors and assigns, and shall
inure to the benefit of Consignor, its successors and assigns.

     
     (b)          Customer
agrees to indemnify and hold harmless Consignor from and against any
third-party claims, actions and suits resulting from: (i) any actual or
proposed use by Customer of the commodities consigned, delivered or sold to
Customer by Consignor; or (ii) Customer’s violation of any environmental law or
release or threatened release of any hazardous materials (including, but not
limited to claims with respect to wrongful death, personal injury or damage to
property); in each case including, without limitation, Consignor’s reasonable
fees and disbursements of counsel incurred in connection with any such
litigation or other proceeding; provided, however, that Consignor shall not be
entitled to indemnification if: (i) a court of competent jurisdiction finally
determines (all appeals having been exhausted or waived) that Consignor acted
in bad faith or with willful misconduct; (ii) if Consignor has not provided
Customer with prompt notice of a claim, action or suit; or (iii) if Consignor
has settled any claim or compromised any of Customer’s rights without the
consent of Customer. The provisions of this subsection shall survive payment or
satisfaction of payment of all amounts owing by Customer with respect to the
obligations hereunder and the termination of the obligations of Consignor
hereunder.

          (c)          This
Agreement shall be governed by and construed under Rhode Island law. If any
provision of this Agreement is held to be invalid, illegal or unenforceable,
the validity of all other terms shall not be affected thereby. Customer submits
to the jurisdiction of the courts of Rhode Island and of any federal court
located in such state, as well as to the jurisdiction of all courts from which
an appeal may be taken from such courts, for the purpose of any suit, action or
proceeding arising out of the breach by Customer of any of its obligations
under this Agreement, and expressly waives any and all objections it may have
as to venue in any of such courts and agrees that service of process may be
made on Customer by mailing a copy of the summons to the address of Customer on
the books and records of Consignor. CUSTOMER WAIVES TRIAL BY JURY IN CONNECTION
WITH ANY SUIT OR ACTION ARISING OUT OF OR CONCERNING ITS OBLIGATIONS IN
CONNECTION WITH THIS AGREEMENT.

          (d)          All
communications hereunder shall be in writing and shall be mailed by certified
mail, return receipt requested, by overnight courier, by confirmed telecopier
or by hand to the address of Consignor or Customer provided above, as
applicable, or to such other address as the parties may provide to each other.
Notices shall be deemed effective three (3) days after deposit in the mail, if
sent by certified mail; the next business day, if sent by overnight courier;
upon confirmation, if sent by confirmed telecopier; and upon delivery, if sent
by hand.

          (e)          This
Agreement and any amendments hereto may be executed in multiple counterparts,
each of which shall deemed to be an original, but all of which together shall
constitute one and the same instrument. Facsimile signatures will be considered
original signatures.

          IN
WITNESS WHEREOF, the parties have executed this Agreement the day and year
first above written.

TECHNITROL, INC.

	
 

	
 

	
 

	
By: /s/ Drew A. Moyer

	
 

	

	
Name: Drew A. Moyer

	
Title: Sr. Vice President & CFO

SOVEREIGN PRECIOUS METALS, LLC

	
 

	
 

	
 

	
By: /s/ Michael Smith

	
 

	

	
Name: Michael Smith

	
Title: Senior Vice President

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