Document:

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                              EMPLOYMENT AGREEMENT

EMPLOYMENT AGREEMENT, dated as of March 20, 2000, between SEMX Corporation, a
Delaware corporation ("SEMX or the "Company"), and Mark A. Koch (the
"Executive"), an individual residing at 54 Beekman Avenue, Croton-On-Hudson,
NY, 10520.

                                   WITNESSETH

WHEREAS, the Company wishes to employ the Executive as its Corporate Controller,
an Executive who should contribute, in part, to the Company's commercial
success.

WHEREAS, the Executive is willing to accept such employment for the inducements
and upon the terms and conditions hereinafter set forth; and

WHEREAS, the Executive has signed the Company's Intellectual Property Agreement
or the Company has bargained for the Executive simultaneously to execute the
Company's Intellectual Property Agreement, a copy of which is annexed hereto as
Exhibit A.

NOW, THEREFORE, in consideration of the premises and mutual covenants contained
herein and other good and valuable consideration, the receipt and sufficiency of
which is hereby acknowledged, the Company and the Executive agree as follows:

SECTION 1. EMPLOYMENT:

    (a)  TERM OF EMPLOYMENT. Upon the terms and subject to the conditions set
    forth in this Agreement, the Company hereby employs the Executive, and the
    Executive agrees to be employed. Subject to earlier termination as provided
    in Section 4 hereof, the term of the Executive's employment by the Company
    under this Agreement (the "Employment Term"), shall commence on March 20,
    2000 and shall continue for one year, until March 20, 2001, on the same
    terms and conditions subject to termination at anytime by the Company or
    Executive upon thirty (30) days prior written notice to the other. After the
    expiration date of this contract, the employment relationship with Executive
    will convert to standard At-Will employment status with the Company.

    (b)  DUTIES. The Executive will serve as the Company's Corporate Controller
    and Secretary and will perform the services and duties for the Company
    designated by the Company's Chief Executive Officer or his designee (the
    "Supervisor"), provided that such duties are reasonably consistent with

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    Executive's responsibilities and status as the Company's Corporate
    Controller and Secretary.

    (c)  EXTENT OF SERVICES. During the Employment Term, the Executive agrees
    to: (i) devote all of his/her business time, energy and skill to the
    business of the Company; (ii) use his/her best efforts to promote the
    interests of the Company; and (iii) discharge such Executive and
    administrative duties consistent with his/her position as may be assigned to
    him/her by the Supervisor. The Executive agrees that he will not work for
    any other profit making organization in a direct or indirect manner without
    the written consent of the Chief Executive Officer of the Company.

SECTION 2. COMPENSATION:

All compensation due the Executive under this Agreement shall be payable by the
Company, whether the services rendered are for the Company or one of its
affiliates.

    (a)  BASE SALARY. For services rendered by the Executive under the
    Agreement, the Company shall pay the Executive an annual salary of One
    Hundred Thirteen Thousand Dollars ($113,000) Dollars (the "Base Salary").
    The Base Salary shall be earned and shall be payable in accordance with the
    Company's normal accounting and payroll practices and the Company may
    increase the Base Salary at any time.

    (b)  BONUS.

         (i)    In addition to Executive's Base Salary, Executive may be paid an
                annual bonus by the Company for a calendar year period (the
                "Bonus Period") in such amount (the "Bonus Amount") as may be
                determined by the Board of Directors of the Company.

         (ii)   The Bonus Amount, if any, shall be paid to Executive no later
                than fifteen (15) days after the completion of the audit of the
                Company's financial statements for the Bonus Period.

         (iii)  The Bonus Amount is due and payable to Executive if and only if
                Executive is in the employ of the Company on the last day of the
                Bonus Period; provided, however, that the Executive (or his/her
                estate) shall be entitled to a pro rated portion of the Bonus
                Amount

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                (based on time elapsed) if Executive: (a) dies, (b) becomes
                disabled (c) is terminated without Cause (defined below) by the
                Company, or (d) exercises the termination provision for Good
                Reason after a Change in Control (as such terms are hereinafter
                defined) prior to the end of the Bonus Period. Executive shall
                not be entitled to any Bonus Amount for a calendar year in which
                Executive did not perform services for the Company or any
                affiliate regardless of the reason therefore or if the Board of
                Directors of the Company determines that performance targets
                established by it with sole discretion (subject to a test of
                reasonableness) were not accomplished for the period in
                question.

SECTION 3. OTHER BENEFITS: During the Employment term, the Executive shall be
entitled to the following benefits:

    (a) vacation time, three (3) weeks annually in accordance with the Company's
    policy for Executives in effect as determined by the Company and consistent
    with the Executive completing his/her responsibilities;

    (b) participation in all employee group life, group health and other fringe
    benefit programs, including, but not limited to, any 401K plan, incentive
    compensation, performance unit, bonus, stock purchase or stock appreciation
    plans now or hereafter initiated or maintained by the Company for Executive
    officers of the Company for which Executive is eligible subject to the right
    of the Company to amend or terminate such plans; and

    (c) reimbursement for all reasonable and properly documented expenses
    incurred or paid by Executive in connection with the performance of his/her
    duties hereunder and in accordance with the general expense reimbursement
    policy of the Company then in effect.

SECTION 4. TERMINATION: The Employment Term shall terminate upon any of the
following occurrences; provided, however, that upon such termination the
Executive shall be entitled to receive, as and when they would have been
received in the ordinary course if such termination had not occurred, the unpaid
portion of his Base Salary and other Executive benefits as they shall have
accrued and vested through the date of such termination for services rendered.

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    (a) VOLUNTARY TERMINATION BY THE EXECUTIVE. Except as set forth in Section
    4(d) below, if the Executive voluntarily ceases to be employed by the
    Company before the end of the Employment Term, with or without the consent
    of the Company, then the Employment Term shall end without further action by
    either party hereto and all rights and obligations of the parties under this
    Agreement, except those set forth in the Intellectual Property Protection
    Agreement, shall terminate as of such date.

    (b) TERMINATION FOR CAUSE. The Company may terminate the Employment Term at
    any time for Cause. For the purposes of this Agreement, "Cause" shall mean;

         (i) the failure of Executive to perform his duties in a manner
         reasonably satisfactory to his Supervisor after notice is given to the
         Executive detailing the reason for his Supervisor's dissatisfaction
         ("Dissatisfaction Notice") and, if such dissatisfaction is subject to
         cure, the failure of the Executive to take steps satisfactory to
         his/her Supervisor to remedy such dissatisfaction within thirty (30)
         days after he receives a Dissatisfaction Notice or, if such
         dissatisfaction is not subject to cure, the repetition of the act or
         omission which dissatisfied his Supervisor is repeated by Executive
         after Executive received such Dissatisfaction Notice;

         (ii) conviction of (a) any serious crime or serious offense involving
         misappropriation of money or other property of the Company, or (b) any
         felony; or

         (iii) Executive's use of narcotics, illegal drugs or controlled
         substances other than as prescribed by a licensed physician.

    (c) TERMINATION UPON DISABILITY. If, during the Employment Term, the Board
    of Directors of the Company reasonably determines that the Executive has
    been or will be incapable of fulfilling his obligations hereunder because of
    injury or physical or mental illness, for a period of more than three (3)
    consecutive months or six (6) months in an aggregate during any period of
    twelve (12) consecutive months, the Company may, upon written notice to the
    Executive, terminate the Employment Term upon thirty (30) days' written
    notice to the Executive, to the extent permitted by applicable law.

    (d) TERMINATION AFTER CHANGE IN CONTROL. This Agreement may be terminated by
    the Executive for Good Reason, if there is a Change in Control. If,

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    after a Change in Control, the Executive terminates this Agreement for Good
    Reason, the Executive will be entitled to the Severance Benefits. The terms
    Change in Control, Good Reason and Severance Benefits are defined in
    Schedule 4D (attached).

SECTION 5. GENERAL:

    (i) This Agreement shall be binding upon and inure to the benefit of the
    Company and its successors and assigns and shall be binding upon and inure
    to the benefit of the Executive and his heirs, executors and administrators.
    If the Company assigns this Agreement, the assignee shall be required to
    expressly assume all obligations of the Company under this Agreement.

    (ii) The waiver by the Company or the Executive of a breach of any provision
    of this Agreement by the other party shall not be construed as a waiver of
    any subsequent breach of the same provision or of any other provision of
    this Agreement.

    (iii) All notices, requests, demands and other communications submitted
    hereunder shall be in writing and shall be deemed to have been duly given if
    delivered by hand or by commercial overnight delivery service or if mailed
    by first class, registered mail, return receipt requested, postage and
    registry fees prepaid; and addressed; if to the Executive, to the address
    set forth in the first paragraph hereof, and if to the Company, to 1
    Labriola Court, Armonk, New York, 10504, attention President.

    (iv) This Agreement shall be construed and enforced in accordance with, and
    governed by, the laws of the State of New York without regard to the
    conflict of laws principles thereof.

    (v) This Agreement together with the Intellectual Property Protection
    Agreement and the Executives' Stock Option Plan Agreement incorporates the
    entire understanding of the parties hereto with respect to the subject
    matter hereof and supersedes all prior agreements relating to such subject
    matter. The invalidity of any section, provision or portion of this
    Agreement shall not affect the validity of any other section, provision or
    portion of this Agreement, and each such section, provision or portion shall
    be enforced to the full extent permitted by law. This Agreement may not be
    modified or amended, or any term or provision hereof waived or discharged,
    except by a written instrument signed by the party against

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    whom such amendment, modification, waiver, or discharge is sought to be
    enforced. The headings of this Agreement are for the purposes of reference
    only and shall not limit or otherwise affect the meaning hereof. This
    Agreement may be executed in several counterparts, all of which together
    shall constitute one and the same instrument.

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

Dated: March 20, 2000                  SEMX Corporation

                                       By:
--------------------------------          --------------------------------
Mark A. Koch                              Gilbert D. Raker, Chairman

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                                   SCHEDULE 4D
                                   DEFINITIONS

(I) "Change in Control" is defined as the occurrence of any of the following
events:

    (A) The acquisition by any individual, entity or group (within the meaning
    of Section 13(d)(3) or 14 (d)(2) of the Securities Exchange Act of 1934, as
    amended (the "Exchange Act") (collectively, a "person") of beneficial
    ownership (as such term is defined in Rule 13d-3 promulgated under the
    Exchange Act), directly or indirectly, of more than fifty (50%) percent of
    the then outstanding shares of common stock of SEMX (collectively, the
    "Outstanding Common Stock") or a transfer or sale of more than fifty (50%)
    percent of the book value of the gross assets of SEMX measured at the time
    of such transfer or sale in one or more transactions; provided, however,
    that the following shall not constitute a Change in Control:

         (i) Any acquisition by an underwriter (as such term is defined in
         Section 2 (11) of the Securities Act of 1934, as amended) for the
         purpose of making a public offering;

         (ii) Any acquisition by SEMX or by any entity controlled by SEMX;

         (iii) Any acquisition by any employee benefit plan (or related trust)
         sponsored or maintained by SEMX or by any entity controlled by SEMX; or

         (iv) Any transfer of assets to SEMX or any entity controlled by SEMX.

    (B) When individuals who are members of the Board of Directors of SEMX
    ("SEMX's Board") at any one time shall immediately thereafter cease to
    constitute a majority of SEMX's Board, or when a majority of SEMX's Board
    shall not consist of persons who were elected or nominated for election as
    directors with the approval of a majority of the present members of SEMX's
    Board in either case within six (6) months of:

         (i) The completion of a tender offer or exchange offer for the voting
         stock of SEMX (other than a tender off or exchange offer by SEMX) or a
         proxy contest in connection with the election of members of the SEMX's
         Board; or

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         (ii) A merger or consolidation of SEMX (other than with SEMX or an
         entity controlled by SEMX).

(II) Good Reason for termination of this Agreement by the Executive is defined
as a termination, subsequent to a Change in Control, based on the occurrence,
without the Executive's express written consent, of any of the following events:

    (A) Any reduction by the Company in the Executive's Base Salary as in effect
    immediately prior to the Change in Control or as the same may be increased
    from time to time during the term of this Agreement;

    (B) The failure by the Company to continue any incentive or bonus plans or
    arrangements in which the Executive is entitled to participate at the time
    of the Change in Control, as the same may be modified from time to time
    (collectively, the "Incentive Plans"), or the failure by the Company to
    continue the Executive as a participant in the Incentive Plans on at least
    the same basis as the Executive presently participates in accordance with
    the Incentive Plans; provided, however, that the amendment, modification or
    termination of any Incentive Plan as in effect at the time of a Change in
    Control on a basis which does not discriminate against the Executive, or a
    class of employees of which the Executive is a member shall not constitute
    "Good Reason" for the termination by the Executive of his employment
    pursuant to the terms of this paragraph;

    (C) The assignment to the Executive of duties inconsistent with his
    position, duties, responsibilities and status with the Company immediately
    prior to the Change in Control, or any substantial change in the Executive's
    reporting responsibilities, titles or offices including directorships) as in
    effect immediately prior to the Change in Control, or any material change in
    the management process which adversely affects the Executive's ability to
    perform his duties;

    (D) A requirement to relocate, except for office relocations that would not
    increase the Executive's one-way commute distance by more than fifty (50)
    miles from the most recent principal residence selected by the Executive
    prior to notice of relocation and except for required travel on SEMX's
    business and SEMX's to any extent substantially consistent with the
    Executive's business travel obligations at the time of the Change in
    Control.

    (E) The failure by the Company to continue in effect any benefit or
    compensation plan or arrangement, stock ownership plan, stock option plan,
    life insurance plan, medical, health, dental, accident and disability plan
    in which the

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    Executive is participating at the time of the Change of Control, or plans
    providing the Executive with substantially similar benefits (collectively,
    the "Benefit Plans"), or the taking of any action by the Company which would
    adversely affect the Executive's participation in or materially reduce the
    Executive's benefits under any such Benefit Plans; provided, however, that
    the amendment, modification or termination of any Benefit Plan as in effect
    at the time of Change in Control on a basis which does not discriminate
    against the Executive, or a class of employees of which the Executive is a
    member shall not constitute "Good Reason" for the termination by the
    executive of his employment pursuant to the terms of this paragraph;

    (F) The taking of any action by the Company which would deprive the
    Executive of any material fringe benefits enjoyed by the Executive at the
    time of the Change in Control, but only if the difference between (x) and
    the aggregate after tax annual value of such fringe benefits and (y) the
    aggregate annual after tax value of any new fringe benefits offered by the
    Company as such time exceed Five Thousand ($5,000) dollars or more;

    (G) The failure by the Company to obtain the assumption of the Agreement by
    any successor or assign of the Company; or

    (H) Any termination of the Executive's employment without Cause.

(III) Severance Benefits are defined as if, subsequent to a Change in Control,
this Agreement is terminated by the Company without Cause (and not for
Disability), or by the Executive for Good Reason, then the Executive shall be
entitled to the following Severance Benefits in lieu of any other rights or
alleged damages:

    (A) The Company shall pay the Executive his full Base Salary through the
    date of termination at the rate in effect at the time notice of termination
    is given (or at the date of termination, if higher) and any bonus for a past
    calendar year which has not yet been awarded or paid to the Executive under
    any Incentive Plan;

    (B) the Company shall pay the Executive an amount equal to the annual
    incentive award earned by the Executive under any Incentive Plans in the
    calendar year ending as of the December 31st immediately preceding the date
    of termination, pro rated to the Date of Termination.

    (C) In lieu of any further salary payments to the Executive for periods
    subsequent to the Date of Termination, the Company shall pay as severance to
    the

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    Executive a lump sum amount equal to the Executive's Base Salary as of the
    date of the Change in Control (or at the date of termination, if higher) for
    a period of six (6) months;

    (D) Except as otherwise provided herein, any Severance Benefits payable
    under this paragraph shall be paid in full in a lump sum not more than sixty
    (60) days following the date of termination. If the Company shall default in
    the payment of any such sum when due, the interest shall accrue on the
    balance of the payments due hereunder at the rate of fifteen (15%) percent
    per annum and the Company shall reimburse Executive for all costs and
    expenses incurred by him, including legal fees, in enforcing his rights
    under this Section 4(d).

         (i) If this Agreement is terminated on a date that is not at the end of
         a calendar year and if the Executive is entitled to incentive
         compensation, the Company will not be obligated to pay the incentive
         compensation which may be due until thirty (30) days after the
         computation by the Company of the amount which may be due.

         (ii) The Executive shall not be required to mitigate the amount of any
         payment contemplated herein (whether by seeking new employment or in
         any other manner), nor shall any such payment be reduced by earning
         that the Executive may receive from any other source.

         (iii) The provisions of this Agreement, and any payments provided for
         hereunder, shall not reduce any amounts otherwise payable, or in any
         way diminish the Executive's existing rights, or rights which would
         accrue solely as a result of the passage of time, under any Incentive
         Plan, Benefit Plan, employment agreement or other contract, plan or
         arrangement.

         (iv) Notwithstanding anything contained elsewhere in this agreement,

    (E) In the event that any payment or benefit received by the Executive in
    connection with a Change in Control or the termination of the Executive's
    employment whether payment pursuant to the terms of this Agreement or any
    other plan, arrangement or agreement with the Company, any person whose
    actions result in a Change in Control or any person affiliated with the
    Company or such person (collectively, with the Severance Benefits payable
    pursuant to paragraph 4(d)(iii) above, the "Total Payments" would not be
    deductible (in whole or in part) as a result of Section 280G of the Internal
    Revenue Code of 1986, as amended (the "Code"), the Severance Benefits shall
    be reduced until no

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    portion of the Total Payments is no deductible as a result of Section 280G
    of the Code, or the Severance Benefits are reduced to zero (the "Reduced
    Amount").

    (F) If the firm of independent public accountants most recently acting as
    the Parent's auditors prior to the Change in Control (the "Auditors")
    determine that any Severance Benefit would be nondeductible by the Company
    because of Section 280G of the Code, then the Company or the Parent shall
    promptly give the Executive notice to that effect and a copy of the detailed
    calculation thereof and of the Reduced Amount (the "280G Notice"), and the
    Executive may then elect, in his sole discretion, which and how much of the
    Severance Benefits shall be eliminated or reduced (as long as after such
    election the aggregate present value of the Severance Benefits equals the
    Reduced Amount) and shall advise the Company or the Parent in writing of his
    election within ten (10) days of his receipt of the 280G Notice. If no such
    election is made by the executive within such ten (10) days period, then the
    Company may elect which and how much of the Severance Benefits shall be
    eliminated or reduced (as long as after such election the aggregate present
    value of the Severance Benefits equals the reduced Amount) and shall notify
    the Executive promptly of such election. All determinations made by the
    Auditors under this paragraph shall be binding upon the Company and the
    Executive and shall be made within sixty (60) days of the date of
    termination. As promptly as practicable following such determination and the
    elections hereunder, the Company shall pay to or distribute to or for the
    benefit of the Executive such amounts as are then due to him under this
    Agreement and shall promptly pay to or distribute for the benefit of the
    Executive in the future such amounts as become due to him under this
    Agreement.

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                                SEMX CORPORATION
                   INTELLECTUAL PROPERTY PROTECTION AGREEMENT

In consideration of my at-will employment --and of my continued at-will
employment --and my compensation, and the equipment, materials, facilities and
the Company's Confidential Information supplied to me, the Company and I
understand and agree that:

1.  RECORDS OF INVENTIONS AND WORKS OF AUTHORSHIP. I will keep complete and
    current written records of all Inventions and Works of Authorship (
    including illustrations, writings, mask works, software and computer
    programs) I make during the period of time I am employed by the Company and
    promptly and completely disclose all such Inventions and Works of Authorship
    in writing to the Company for the purpose of adequately determining the
    Company's rights in each such Invention and Work of Authorship. I will
    supplement any such disclosures to the extent the Company may request. If I
    have any doubt as to whether or not to disclose an Invention or Work of
    Authorship to the Company, I will disclose it. In this connection, I will
    not file any patent or copyright application relating to any Invention or
    Work of Authorship I make during the period of time I am employed by the
    Company without the prior written approval of the Company.

2.  OWNERSHIP OF INVENTIONS AND WORKS OF AUTHORSHIP. Each and every Invention
    and Work of Authorship I make during the period of time I am employed by the
    Company which (a) relates to the business of the Company or to the Company's
    actual or demonstrably anticipated research or development, (b) results from
    any work I perform for the Company, or (c) relates to the Company's
    Confidential Information, is the sole and exclusive property of the Company
    and I will assign my entire right, title and interest in each such Invention
    or Work of Authorship to the Company, except those excluded from any
    obligation to assign to the Company as a matter of law existing at the time
    such Invention or Work of Authorship is made. If I assert any property right
    in an Invention or Work of Authorship I make during the period of time I am
    employed by the Company as provided by law, I will promptly notify the
    Company in writing.

3   DISCLOSURE OF INVENTION OR WORK OF AUTHORSHIP AFTER TERMINATION. I will
    promptly and completely disclose in writing to the Company, all Inventions
    or Works of Authorship which I make during the one year immediately
    following the end of my employment with the Company which (a) relates to the
    business of the Company or to the Company's actual or demonstrably
    anticipated research or development, (b) results from work I performed for
    the Company, or (c) relates to the Company's rights in each such Invention
    or Work of Authorship. During this

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    period I will not file any patent or copyright application relating to any
    such Invention or Work of Authorship without the prior written consent of
    the Company. If I do not prove that I made the Invention or Work of
    Authorship entirely after leaving the Company's employment or if I do not
    prove that the invention or Work of Authorship does not in any way relate to
    my work assignment at the Company, to the Company's business, or to the
    Company's Confidential Information, the Invention or Work of Authorship
    shall conclusively be presumed to be the property of the Company. I
    acknowledge that the conditions of this paragraph are no greater than is
    necessary for protecting the Company's interests in the Company's
    Confidential information and in Inventions or Works of Authorship to which
    it is rightfully entitled. I agree to assign to the Company all of my
    interest in such Inventions or Works of Authorship belonging to the Company
    and I will execute any/all papers and do any/all acts which the Company
    considers necessary to secure to it any/all rights relating to such
    Inventions or Works of Authorship.

4.  COOPERATION WITH THE COMPANY. I will assist and fully cooperate with the
    Company in obtaining and maintaining the fullest measure of legal protection
    which the Company elects to obtain for Inventions and Works of Authorship in
    which it has a property right. I will execute any lawful document the
    Company requests me to execute relating to obtaining and maintaining legal
    protection for any said Invention or Work of Authorship (including, but not
    limited to, executing applications, assignments, oaths, declarations, and
    affidavits) and I will make myself available for interview, depositions and
    testimony relating to any said Invention or Work of Authorship, at the
    expense of the Company and at normal rate of compensation.

5.  PRE-EMPLOYMENT INVENTIONS OR WORKS OF AUTHORSHIP. On schedule A (an integral
    part of the Agreement on page 7) 1 have completely identified, without
    disclosing any trade secret or other confidential information, every
    Invention or Work of Authorship I made before my employment by the Company
    in which I have an ownership interest, and which is not the subject matter
    of an issued patent or printed publication at the time I sign this
    agreement.

    If I become aware of any projected or actual use of any such Invention or
    Work of Authorship by the Company, I will promptly notify the Company in
    writing of said use. Except as to the Inventions or Works of Authorship
    listed on Schedule A or those which are the subject matter of an issued
    patent or printed publication at the time I sign this Agreement. I will not
    assert any rights against the Company with respect to any Invention or Work
    of Authorship made before my employment

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    with the Company.

6.  THE COMPANY'S CONFIDENTIAL INFORMATION; RESTRICTIVE COVENANTS. During the
    period of time I am employed by the Company and indefinitely thereafter with
    respect to Confidential Information which constitute trade secrets and for a
    period of five years after my employment with the Company terminates with
    respect to Confidential Information which does not constitute trade secrets,
    I will not, directly or indirectly, use the Company's Confidential
    Information except in the furtherance of the Company's business nor will I
    disclose or disseminate the Company's Confidential Information to anyone who
    is not an officer, director, employee, attorney or authorized agent of the
    Company without the prior written consent of the Company, unless the
    specific item of the Company's Confidential Information is now in, or
    hereafter (through no breach of this Agreement) becomes part of the public
    domain; provided, however, I agree that none of the provisions of this
    Agreement including the foregoing exception for Confidential Information
    which becomes part of the public domain and the five year time period with
    respect to certain Confidential Information, shall be construed to
    constitute: (a) a waiver by the Company of any of its right in, or to
    protect specific items of the Company's Confidential Information which
    constitute trade secrets, or (b) a release of or limit to my legal
    obligation not to disclose or misappropriate any such Company trade secrets,
    during or after my employment with the Company. I understand that such use,
    disclosure or dissemination of the Company's Confidential Information would
    become accessible to and reasonably be considered useful to a competitor of
    the Company or to a third party which would be assisted in becoming a
    competitor of the Company. I will execute any agreement relating to the
    protection of the Company's Confidential Information or the Confidential
    Information of any third party with whom the Company is under legal
    obligation to protect that third party's confidential information if the
    Company requests.

    I recognize the possibility that I might subsequently own or work for a
    business which directly or indirectly competes with the Company. I will not,
    without prior written consent of the Company, utilize any Confidential
    Information of the Company in any subsequent employment nor use, disclose or
    otherwise compromise the integrity of such Confidential Information.

    Without limiting the foregoing, for a period of one year after termination
    of my employment with the Company, I will not attempt to divert nor assist
    others to acquire any Company business by soliciting, contracting or
    communicating with any customer of the Company's products or services with
    whom I had contact

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    during the year preceding termination of my employment.

    I acknowledge that all documents and tangible things embodying or containing
    the Company's Confidential Information are the Company's exclusive property.
    I have access to them solely for performing the duties of my employment for
    the Company. I will protect the confidentiality of their content and I will
    return all of them and all copies, facsimiles and specimens of them
    (including excerpts or portion thereof) and any other forms of the Company's
    Confidential Information in my possession, custody or control to the Company
    before leaving the employment of the Company.

    I recognize that irreparable and incalculable injury will result to the
    Company, its business and property, in the event of a breach by me of the
    restrictions imposed by this Agreement. I therefore agree that in the event
    of any such breach, the Company shall be entitled, in addition to any other
    remedies and damages, to an injunction restraining further violation of such
    restrictions by me and/or by any other person for whom I may be acting or
    who is acting for me or in concert with me.

    If the Company is awarded an injunction or other remedy in connection with
    the enforcement of such restrictions, I further agree to pay all costs and
    expenses (including attorney's fees) reasonably incurred by the Company in
    such enforcement effort. I waive any requirement for security or the posting
    of any bond or other surety and proof of damages in connection with any
    temporary or permanent award of injunctive, mandatory or other equitable
    relief and I further agree to waive the defense in any action for specific
    performance that a remedy at law would be adequate. I waive the right to a
    jury trial of any such action.

    In the event that any of the provisions of this Paragraph 6 should ever be
    adjudicated to exceed the time, geographic, product or service, or other
    limitations permitted by applicable law in any jurisdiction, then the court
    shall have the power and shall reform the provisions of this Paragraph 6 in
    such jurisdiction to the maximum time, geographic, product or service, or
    other limitation permitted by applicable law.

    By entering into this Agreement, I acknowledge that: (I) 1 am familiar with
    the nature of the Company's business; (II) I have read and understand the
    nature and scope of the restrictions set forth in this Agreement; and (III)
    that the Company has invested and will continue to invest substantial effort
    and sums of money to develop and promote the Company products, services and
    goodwill together with

15

<PAGE>

    Confidential Information. I THEREFORE ACKNOWLEDGE AND REPRESENT THAT THE
    SCOPE OF SUCH RESTRICTIONS ARE APPROPRIATE, NECESSARY AND REASONABLE FOR THE
    PROTECTION OF THE BUSINESS, GOODWILL AND PROPERTY RIGHTS OF THE COMPANY AND
    WILL, NOT PREVENT OR HINDER ME FROM EARNING A LIVING IN THE EVENT OF, AND
    AFTER, TERMINATION OF MY EMPLOYMENT WITH THE COMPANY.

7.  CONFIDENTIAL INFORMATION FROM PREVIOUS EMPLOYMENT. I certify that I have
    not, and will not, disclose or use during my employment with the Company,
    any confidential information which I acquired as a result of any previous
    employment or under a contractual obligation of confidentiality before my
    employment by the Company.

8.  PRIOR RESTRICTIVE OBLIGATIONS. On schedule B (an integral part of this
    Agreement on page #7), I have completely identified all prior obligations
    (written and oral), such as confidentiality agreements or covenants
    restricting future employment, that I have entered into which restrict my
    ability to perform the duties of my employment for the Company. I agree to
    indemnify and hold the Company harmless from all liabilities and expenses
    resulting from my failure to identify all my prior obligations.

9.  NOTICE TO FUTURE EMPLOYERS. For a period of one year immediately following
    the end of my employment by the Company, I will inform each new employer,
    prior or my employment, of the existence of this Agreement and provide the
    new employer with a copy of this Agreement. I further agree that the Company
    may, if it so desires, send a copy of this Agreement to, or otherwise make
    the provisions hereof known to, any such new employer.

10. MISCELLANEOUS. This Agreement binds my heirs, executors, administrators,
    legal representatives and assigns and inures to the benefit of the Company
    and its successors and assigns.

    Only a written amendment executed by both myself and the Company can
    constitute a waiver or modification of any provision of the Agreement.

    This Agreement becomes effective when I sign it, my obligations under it
    continue throughout the entire period of time I am employed by the Company,
    without regard to the business organization within the Company with which I
    am associated, and these obligations will continue after, and survive, the
    end of my

16
<PAGE>

    employment by the Company. This Agreement replaces previous agreements
    relating to the subject matter of the Agreement and shall be deemed
    effective as of the first day of my employment by the Company just as though
    I had executed this Agreement on that first day except that such replacement
    shall not affect the rights and obligations of me or the Company arising out
    of any such prior agreement, which rights and obligations shall remain in
    effect for that purpose.

    If a court of competent jurisdiction determines that any portion of the
    Agreement is illegal, invalid or unenforceable, then, subject to the
    provisions regarding reformation set forth in Paragraph 6 hereof, that
    portion shall be considered to be removed from this Agreement and it shall
    not affect the legality, validity or enforceability of the remainder of this
    Agreement and the remainder of the Agreement shall continue in full force
    and effect. This Agreement shall be governed by, and construed under, the
    laws of the State of New York without regard to its conflicts of law rules.

11. DEFINITIONS.

    (A) "THE COMPANY" refers collectively to SEMX Corporation, a Delaware
    corporation, having a place of business at 1 Labriola Court, Armonk, NY,
    10504 and its predecessors, designees and successors and its past, present
    and future operating companies, divisions, parents, subsidiaries, affiliates
    and other business units.

    (B) "THE COMPANY CONFIDENTIAL INFORMATION" is any information used in the
    Company's business which gives the Company an advantage over competitors who
    do not know or use such information (for example, a formula, manufacturing
    process, manufacturing equipment, proprietary compound, customer lists,
    marketing plans, financial data, business data, etc.) and includes not only
    information designated by the Company as confidential information but also
    the Company's other trade secrets and other confidential or proprietary
    information, or confidential information entrusted to it;

    (C) "INVENTIONS" or "WORK OF AUTHORSHIP" include not only inventions
    (whether or not patentable) or Works of Authorship (whether or not
    copyrightable), but also innovations, improvements, discoveries, ideas and
    all other forms of intellectual property - whether or not any of the
    foregoing constitutes trade secrets or other confidential or proprietary
    information; and

    (D) "MAKE" or "MADE, used in relating to Inventions or Works of Authorship

17

<PAGE>

    includes any one or any combination of (I) conception, (II) reduction to
    practice, or (III) development of, any Invention or Work of Authorship and
    is without regard to whether I am sole or joint inventor or author.

                                       Employee:

Dated:                                 /s/
      ----------------------------     -----------------------------------------
                                       Identified throughout this Agreement
                                       by the use of the first person singular)

                                       Printed Name:
                                                    ----------------------------

                                       SEMX Corporation

Dated:                                 By: /s/
      ----------------------------        --------------------------------------
                                          Officer of Human Resources

18<PAGE>

                   AMENDED AND RESTATED CONSIGNMENT AGREEMENT

    AMENDED AND RESTATED CONSIGNMENT AGREEMENT, dated as of June 30, 2000, by
and between FLEET PRECIOUS METALS INC., a Rhode Island corporation with its
principal office located at 111 Westminster Street, Providence, Rhode Island
02903 ("FPM"); and SEMX CORPORATION, a Delaware corporation with its principal
office located at One Labriola Court, Armonk, New York 10504 (the "Company").

                               W I T N E S E T H:

    WHEREAS, the Company and FPM entered into a Consignment Agreement dated
December 23, 1996, as amended from time to time (as amended, the "1996
Consignment Agreement"); and

    WHEREAS, FPM and the Company desire to amend and restate the 1996
Consignment Agreement in its entirety on the terms and conditions hereinafter
set forth;

    NOW, THEREFORE, in consideration of the premises and of the mutual promises
hereinafter contained, and for other good and valuable consideration, the
receipt and adequacy of which are hereby acknowledged, the parties hereto hereby
agree as follows:

1.  DEFINITIONS.

    When used herein, the terms set forth below shall be defined as follows:

    1.1. "Affiliate" means (i) any Subsidiary of the Company; (ii) any entity or
corporation controlled by the Company, or by any Subsidiary, employee, officer,
director or shareholder of the Company; and (iii) any entity which controls the
Company. For purposes of this definition, "control" shall include the ownership
of more than 10% of the outstanding stock of a corporation or of the equity or
income of a partnership, a limited liability company or a joint venture.

    1.2. "Authorized Representatives" means all person(s) who are authorized by
and on behalf of the Company to transact consignment and purchase and sale
transactions with FPM under the Consignment Facility.

    1.3. "Bank" means Fleet National Bank, a national banking association.

    1.4. "Business Day" means each and every day other than Saturdays, Sundays
and days on which FPM are closed by virtue of a national holiday or a holiday in
the State of Rhode Island.

    1.5. "Consigned Precious Metal" means Precious Metal which has been
consigned to the Company by FPM pursuant to the Consignment Facility.

<PAGE>

    1.6. "Company" means SEMX Corporation, a Delaware corporation.

    1.7. "Company's Address" means One Labriola Court, Armonk, New York 10504.

    1.8. "Consignment Facility" means the facility under Paragraph 2 hereof,
whereby the Company may request consignments of Precious Metal.

    1.9. "Consignment Facility Indebtedness" means the value (as determined in
accordance with Paragraph 2.2 hereof) of Consigned Precious Metal plus any
unpaid purchase price for Consigned Precious Metal.

    1.10. "Consignment Limit" means:

          (a)  an amount equal to the lesser of:

               (i)   Two Million Four Hundred Thousand Dollars ($2,400,000); or

               (ii)  the value (as determined pursuant to Paragraph 2.2 hereof)
                     of up to Six Thousand Five Hundred (6,500) troy ounces of
                     gold; or

          (b)  such limit as FPM and the Company may agree upon from time to
               time as evidenced by an amendment in substantially the form of
               Exhibit B attached hereto and made a part hereof or in such other
               form as FPM shall require.

    1.11. "Consignment Period" means, with respect to the consignment of
Precious Metal 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 of up to two (2) years but in no
event later than the Maturity Date) thereafter (or, if such month has no
numerically corresponding day, on the last Business Day of such month), as the
Company may select in its relevant notice pursuant to Paragraph 2.4 or 2.5;
provided, however, that:

          (a)  Consignment Periods commencing on the same date for consignments
               of Consigned Precious Metal 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 Business Day, such Consignment Period shall end on the next
               following Business Day; provided, however, that if such next
               following Business Day is the first Business Day of a calendar
               month, such Consignment Period shall end on the next preceding
               Business Day.

                                      -2-
<PAGE>

    1.12. "Consolidated" means the operations of the Company and all of its
Subsidiaries, foreign and domestic.

    1.13. "Drawdown Date" means the date on which any consignment under the
Consignment Facility is made or is to be made and the date on which any
consignment under the Consignment Facility is converted or continued in
accordance with Paragraph 2.5 hereof.

    1.14. "Earnings Before Interest and Taxes" shall mean for any period the sum
of (i) net income (or loss) of Company on a Consolidated basis for such period
(excluding extraordinary gains and losses, plus (ii) all interest expense
(including consignment fees) of Company on a Consolidated basis for such period,
plus (iii) all charges against income of Company on a Consolidated basis for
such period for federal, state and local taxes. 1.15. "EBITDA" shall mean for
any period the sum of (i) Earnings Before Interest and Taxes for such period
plus (ii) depreciation expenses for such period, plus (iii) amortization
expenses for such period. 1.16. "Event of Default" means each and every event
specified in Paragraph 7.1 of this Agreement.

    1.17. "FPM" means Fleet Precious Metals Inc., a Rhode Island corporation.

    1.18. "Fiscal Year" means the year ending December 31.

    1.19. "Fixed Charge Coverage" shall mean and include, with respect to any
fiscal period, the ratio of;

          (a)  EBITDA, minus capital expenditures (calculated on a cash basis)
               made during such period (except for any capital expenditures made
               after June 1, 2000 up to an aggregate amount of $6,400,000), and
               minus the amount of federal, state and local taxes actually paid,
               to

          (b)  all cash actually expended by Company to make (i) interest
               payments on any advances made by the Lender to the Company, plus,
               (ii) scheduled principal payments on the term loan extended to
               the Company by the Lender, plus, (iii) payments for all fees,
               commissions and charges with respect to any advances made by the
               Lender to the Company, plus (iv) capitalized lease payments, plus
               (v) all consignment fees, premium charges, purchase price and
               other amounts paid by the Company to FPM under this Agreement;
               plus (vi) payments with respect to any other indebtedness for
               borrowed money, and plus (viii) any dividends paid to the holders
               of the Series B Preferred Stock during such period.

                                      -3-
<PAGE>

    1.20. "Fixed Consignment Fee" means a consignment fee calculated in
accordance with the provisions of Paragraph 2.3(b) hereof.

    1.21. "Floating Consignment Fee" means a consignment fee calculated in
accordance with the provisions of Paragraph 2.3(a) hereof.

    1.22. "GAAP" means generally accepted accounting principles consistently
applied.

    1.23. "Financial Statements" means the audited balance sheets of the Company
as at December 31, 1999 and the audited statements of income and retained
earnings of the Company for the years ended on such dates, accompanied by the
reports thereon of the independent certified public accountants.

    1.24. "Laws" means all applicable ordinances, statutes, rules, regulations,
orders, injunctions, writs or decrees of any government or political subdivision
or agency thereof, or any court or similar entity established by any thereof.

    1.25. "FPM's Address" means 111 Westminster Street, Providence, Rhode Island
02903, Attn: Paul M. Mongeau, Vice President.

    1.26. "Lender" means PNC Bank.

    1.27. "Maturity Date" means June 30, 2002.

    1.28. "Obligations" means any and all indebtedness, obligations and
liabilities of the Company to FPM of every kind and description, direct or
indirect, secured or unsecured, joint or several, absolute or contingent, due or
to become due, whether for payment or performance, now existing or hereafter
arising, regardless of how the same arise or by what instrument, agreement or
book account they may be evidenced, or whether evidenced by any instrument,
agreement or book account, including, without limitation, all indebtedness and
obligations under the Consignment Facility; all indebtedness, liabilities or
obligations owing from the Company to others which FPM may have obtained by
purchase, negotiation, discount, assignment or otherwise; and all interest,
taxes, fees, charges, expenses and attorneys' fees chargeable to the Company or
incurred by FPM hereunder, or any other document or instrument delivered
hereunder or as a supplement hereto.

    1.29. "Precious Metal" means gold bullion, having a minimum degree of
fineness of ninety-nine and 99/100 percent (99.99%).

    1.30. "Premises" means all real estate owned, used or leased by the Company.

    1.31. "Prime Rate" means the variable per annum rate of interest so
designated from time to time by the Bank as its prime rate. The Prime Rate is a
reference rate and does necessarily represent the lowest or best rate being
charged to any customer.

                                      -4-
<PAGE>

    1.32. "Security Agreement" means the Security Agreement dated December 23,
1996 of the Company in favor of FPM which secures the payment and performance of
the Obligations.

    1.33. "Subsidiary" means any corporation of which more than fifty (50%)
percent of the outstanding voting securities shall, at the time of
determination, be owned by a corporation directly or indirectly through one or
more Subsidiaries.

    1.34. "Tangible Net Worth" means the excess of the Company's total
Consolidated assets over its total Consolidated liabilities computed in
accordance with GAAP less all amounts due from Affiliates, officers and
shareholders, intangible assets and deferred charges, including without
limitation, goodwill, debt discount, organization expenses, trademarks and
tradenames, patents, deferred product development costs and similar items.

    To the extent not defined in this Paragraph l, unless the context otherwise
requires, accounting and financial terms used in this Agreement shall have the
meanings attributed to them by GAAP, and all other terms contained in this
Agreement shall have the meanings attributed to them by Article 9 of the Uniform
Commercial Code in force in the State of Rhode Island, as of the date hereof to
the extent the same are used or defined therein.

2.  CONSIGNMENT FACILITY.

    2.1. Consigned Precious Metal; Insurance; Title.

          (a)  The commodities to be consigned to the Company by FPM under
               Consignment Facility will consist of Precious Metal as defined
               herein. EXCEPT FOR THE FINENESS OF THE PRECIOUS METAL AS DEFINED
               HEREIN, FPM MAKES NO REPRESENTATION OR WARRANTY OF ANY KIND,
               EXPRESS OR IMPLIED, WITH RESPECT TO THE GOODS CONSIGNED OR TO BE
               SOLD HEREUNDER, WHETHER AS TO MERCHANTABILITY, FITNESS FOR A
               PARTICULAR PURPOSE OR ANY OTHER MATTER, AND FPM HEREBY DISCLAIMS
               ALL SUCH WARRANTIES.

          (b)  Precious Metal shall be consigned to the Company by FPM in
               amounts as requested by the Company from time to time in
               accordance, and in compliance, with the terms and provisions
               hereof. It is understood that at no time shall the Consignment
               Facility Indebtedness exceed the Consignment Limit.

          (c)  All deliveries requested by the Company of Precious Metal shall
               be made at the Company's expense and risk by a recognized
               reputable carrier of FPM's selection. Following the delivery of
               Consigned Precious Metal to the Company, at the Company's Address
               under the Consignment Facility, or to such other location as may
               be agreed upon from time to time by the Company and

                                      -5-
<PAGE>

               FPM, the Company shall insure the Consigned Precious Metal,
               including all Consigned Precious Metal which is in transit, to
               its full value against all risks of loss and shall, as between
               FPM and the Company, accept all risk of loss until its return to
               FPM, as hereinafter provided. All such insurance policies shall
               provide at least thirty (30) days' prior written notice to FPM of
               any cancellation or alteration thereof and shall insure all
               Consigned Precious Metal wherever it is located. At FPM's
               request, the Company will furnish FPM with the certificate of an
               insurance company reasonably satisfactory to FPM and a true and
               complete copy of all insurance policies evidencing the
               satisfaction of the Company's insurance obligations hereunder and
               the inclusion of FPM as an additional insured and loss payee
               under any applicable policy as its interest may appear; provided,
               however, that FPM shall be under no duty either to ascertain the
               existence of or to examine any such policy or certificate or to
               advise the Company in the event such policy shall not comply with
               the requirements hereof.

          (d)  Title to Consigned Precious Metal shall remain in FPM until such
               Consigned Precious Metal is purchased and withdrawn from
               consignment by the Company, and Consigned Precious Metal shall
               for the purposes of this Agreement be deemed to be outstanding on
               consignment until paid for in full by the Company as provided in
               Paragraph 2.3(c) hereof, whereupon title to such purchased
               Consigned Precious Metal shall pass to the Company. Upon request
               by FPM, the Company will execute such financing statements and
               other documents as may be reasonably requested by FPM to protect
               FPM's interests as a consignor and a secured party under the
               Uniform Commercial Code.

          (e)  Until such time as title to Consigned Precious Metal shall pass
               to the Company as hereinabove provided, at least ninety percent
               (90%) of all Consigned Precious Metal shall at all times be
               physically located either (i) on the premises of the Company at
               One Labriola Court, New York, or (ii) on the premises of Elector
               Alloy Recovery Inc., 21 Farber Drive, Bellport, New York 11713,
               or (iii) on the premises of such other locations as may be agreed
               upon by the parties hereto, or (iv) in transit between said
               premises.

          (f)  The Company shall pay all license fees, assessments and sales,
               use, excise, property and other taxes now or hereafter imposed by
               any governmental body or authority with respect to the
               possession, use, sale, transfer, consignment, delivery or
               ownership of the Consigned Precious Metal.

          (g)  The Company shall deliver to FPM a certificate or letter
               certifying to FPM the name(s) of all Authorized Representatives,
               in the form

                                      -6-
<PAGE>

               attached hereto as Exhibit A. FPM may conclusively rely on such
               certificate or letter until it shall receive further certificates
               from the Company in form acceptable to FPM canceling or amending
               the prior list of Authorized Representatives. Any person
               identifying himself or herself as an Authorized Representative of
               the Company shall have the right to effect transactions under the
               Consignment Facility and this Agreement. FPM shall have no
               responsibility or obligation to ascertain whether the person is
               in fact the Authorized Representative of the Company which he or
               she claims to be or is, in fact, authorized to effect the
               transaction. At its option, FPM may verify any telephonic or
               telegraphic request for transaction by calling an Authorized
               Representative, and where more than one Authorized Representative
               is so authorized, by calling an Authorized Representative or
               other individual other than the caller or the individual
               initiating the transaction. The Company authorizes FPM at its
               option to record electronically all telephonic requests for
               transactions that FPM may receive from the Company or any other
               person purporting to act on behalf of the Company.

          (h)  FPM shall not be liable for any delay in delivery or for any
               inability to deliver Precious Metal hereunder directly or
               indirectly resulting from any unavailability or scarcity of
               precious metals, foreign or domestic embargoes, seizure, acts of
               God, insurrections, strikes, war, the adoption or enactment of
               any law, ordinance, regulation, ruling or order directly or
               indirectly interfering with the production, sale, consignment or
               delivery of Precious Metal hereunder, lack of transportation,
               fire, flood, explosions or other accidents, events or
               contingencies beyond FPM's reasonable control.

          (i)  FPM and the Company hereby acknowledge, confirm and agree that
               the foregoing description of the form and manner in which
               Precious Metal will be consigned and delivered pursuant to this
               Agreement is intended to make clear that FPM is obligated to
               engage only in transactions involving Precious Metal in
               quantities and units which it customarily maintains in its
               regular inventory, but is not intended to limit such form and
               manner in the event that FPM shall agree separately to engage in
               other types of transactions. Accordingly, the Precious Metal
               consigned pursuant to the Consignment Facility and governed by
               this Agreement shall be such quantity and type of Precious Metal
               as FPM shall confirm to the Company from time to time. In
               addition, FPM and the Company acknowledge that if FPM shall at
               any time be unable to deliver Precious Metal of the type and in
               the form that the Company requests, the Company shall be under no
               obligation to accept Precious Metal from FPM of another type or
               in another form. Without limiting the generality of the
               foregoing, Precious Metal in the possession or control of the
               Company, or

                                      -7-
<PAGE>

               Precious Metal held by a third party for the account of the
               Company, shall constitute Precious Metal consigned pursuant to
               the Consignment Facility notwithstanding that (i) such Precious
               Metal is in alloyed form or is contained in raw materials,
               work-in-process, or finished goods, (ii) such Precious Metal was
               delivered to, or credited to the account of, the Company, by a
               third party in exchange for or in consideration of Precious Metal
               delivered by FPM to such third party, (iii) such Precious Metal
               was sold by the Company to FPM and then consigned back to the
               Company pursuant to this Agreement, or (iv) such Precious Metal
               is demonstrably not the Precious Metal physically delivered by
               FPM. In no event shall the amount of Precious Metal deemed to be
               consigned hereunder exceed the actual amount of Precious Metal
               consigned by FPM.

    2.2. Valuation.

    For the purpose of this Agreement, the value of the Consigned Precious Metal
shall be determined on the basis of the London Bullion Brokers' second fixing
price on the valuation date, or, in any case if no price is available for such
date, then on the basis of said second fixing price on the next previous day for
which such price was available. In the event that the London Bullion Brokers
shall discontinue or alter its usual practice of quoting a price for gold on any
day for which such a price is necessary for the purposes hereof, FPM shall so
notify the Company and FPM shall at its option announce a substituted index or
mechanism which is reasonably acceptable to the Company which shall thereupon
become the method of valuation hereunder.

    2.3. Payments by the Company.

          (a)  During such time as Consigned Precious Metal is consigned to the
               Company hereunder and until the same is withdrawn from
               consignment and paid for in full by the Company as hereinafter
               provided, the Company will pay to FPM a fee computed daily on the
               value of such Consigned Precious Metal at the rate of four and
               one-half percent (4.5%) per annum or at such other rates as FPM
               shall announce from time to time in writing in substantially the
               form of Exhibit C attached hereto and made a part hereof, such
               fee to be accrued on a daily basis and paid to FPM not later than
               the fifth Business Day following the receipt of billing. A
               consignment fee calculated in accordance with this subparagraph
               shall be know as a "Floating Consignment Fee".

          (b)  During such time as Consigned Precious Metal is consigned to the
               Company hereunder and until the same is withdrawn from
               consignment and paid for in full by the Company as hereinafter
               provided and provided that no Event of Default has occurred and
               is then continuing, instead of the paying the Floating
               Consignment Fee set forth in Paragraph 2.3(a) above, the

                                      -8-
<PAGE>

               Company may elect to pay to FPM a Fixed Consignment Fee with
               respect to Consigned Precious Metal in accordance with the
               following:

               (i)  Such Fixed Consignment Fee shall be calculated for a certain
                    specific quantity of Consigned Precious Metal consigned to
                    the Company for a certain specific Consignment Period at a
                    rate announced by FPM from time to time upon the request of
                    the Company. The quantity of Consigned Precious Metal, and
                    the Consignment Period shall be selected by the Company and
                    consented to by FPM, but shall in no event terminate later
                    than the Maturity Date. Once the specific quantity of
                    Consigned Precious Metal and the specific Consignment Period
                    has been selected and the consignment fee determined, such
                    selections shall be irrevocable and binding on the Company
                    and shall obligate the Company to accept the consignment
                    requested from FPM in the amount and for Consignment Period
                    specified.

               (ii) The Fixed Consignment Fee shall be accrued on a daily basis
                    and paid to FPM not later than the fifth Business Day
                    following the receipt of billing.

          (c)  At such time as the Company shall request the consignment and
               delivery of Consigned Precious Metal under the Consignment
               Facility, it shall become obligated to pay to FPM a market
               premium per troy ounce announced by FPM at the time of such
               consignment. Such payment is to be made within five (5) Business
               Days of the Company's receipt of FPM's monthly invoice by bank
               wire to a bank of FPM's choice.

          (d)  At such time as the Company shall purchase and withdraw Consigned
               Precious Metal from consignment under the Consignment Facility,
               it shall become obligated to pay to FPM (i) a purchase price
               computed in accordance with Paragraph 2 hereof, plus any
               applicable pricing premium, if such purchase is effected by the
               Company 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 FPM and the Company. The purchase of all Consigned
               Precious Metal bearing a Fixed Consignment Fee shall take place
               on the last day of the Consignment Period relating thereto. All
               payments of purchase price for Consigned Precious Metal are to be
               made within two (2) Business Days of such purchase by bank wire
               to a bank of FPM's choice or by direct debit or credit to an
               account maintained at a mutually agreed-upon financial
               institution, provided, however, title to such Consigned Precious
               Metal shall not pass until the payment of such purchase price.
               Consigned Precious Metal shall be deemed

                                      -9-
<PAGE>

               to have been purchased and withdrawn from consignment at the
               earlier of (i) such time as either Consigned Precious Metal or
               inventory containing Consigned Precious Metal is shipped from the
               locations permitted hereunder, or (ii) such time as the Company
               shall notify FPM it elects to purchase such Consigned Precious
               Metal from FPM, or (iii) such time as the Company sells such
               Consigned Precious Metal in the ordinary course of its business.

          (e)  The Company hereby agrees to pay upon demand, to the extent
               permitted by law, late charges on any sum or amount not paid when
               due hereunder at a rate per annum equal to the Prime Rate plus
               four per cent (4%), from the date of delinquency until payment in
               full.

          (f)  If the entire amount of a required principal and/or interest
               payment is not paid in full within ten (10) business days after
               the same is due, the Company shall pay to FPM a late fee equal to
               five percent (5%) of the required payment.

          (g)  The Company hereby authorizes FPM from time to time to charge any
               demand deposit account(s) of the Company maintained with the Bank
               at any time and from time to time for the purpose of paying any
               amounts which are at any time properly payable by the Company
               hereunder. The Bank shall be entitled to rely upon this
               authorization.

    2.4. Requests for Consignments under the Consignment Facility.

          (a)  The Company shall give to FPM telephonic notice (confirmed in
               writing by FPM) of each request for a consignment under the
               Consignment Facility.

          (b)  Requests for any consignments under the Consignment Facility with
               a Floating Consignment Fee shall be furnished to FPM no later
               than 12:00 noon (Providence time) on the same Business Day of the
               proposed Drawdown Date. Each such notice shall specify (i) the
               amount and type of Precious Metal requested, and (ii) the
               proposed Drawdown Date of such consignment.

          (c)  Requests for any consignments under the Consignment Facility with
               a Fixed Consignment Fee shall be furnished to FPM by 12:00 noon
               (Providence time) two (2) Business Days prior to the proposed
               Drawdown Date. Each such notice shall specify (i) the amount and
               type of Precious Metal requested, (ii) the proposed Drawdown Date
               of such consignment, and (iii) the Consignment Period for such
               consignment.

    2.5. Conversion Options.

                                      -10-
<PAGE>

          (a)  The Company 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 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;
               (ii) with respect to any such conversion of a Floating
               Consignment Fee consignment to a Fixed Consignment Fee
               consignment, the Company shall give FPM at least two (2) Business
               Days' prior written notice of the day on which such election is
               effective; and (iii) no consignment may be converted into a Fixed
               Consignment Fee consignment when FPM have declared the existence
               of an Event of Default hereunder. The Company shall give to FPM
               telephonic notice (confirmed in writing by FPM) of its decision
               to convert an outstanding consignment. All or any part of
               outstanding consignments under the Consignment Facility may be
               converted as provided herein. Each such request shall be
               irrevocable by the Company.

          (b)  Any Fixed Consignment Fee consignments may be continued as such
               upon the expiration of a Consignment Period with respect thereto
               by giving to FPM telephonic notice (confirmed in writing by FPM)
               of the Company's decision to continue an outstanding consignment
               as such, subject, however, to the determination of the specific
               Consignment Period and rate to be charged by FPM therefor.
               Provided, however, no Fixed Consignment Fee consignment may be
               continued as such when FPM have 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.

          (c)  In the event that the Company does not notify FPM 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.

    2.6. Inability to Determine Fixed Consignment Fee.

    In the event, prior to the commencement of any Consignment Period relating
to any Fixed Consignment Fee consignment, FPM shall determine in good faith that
adequate and reasonable methods do not exist for ascertaining the Fixed
Consignment Fee for any Consignment Period, FPM shall forthwith give notice of
such determination (which shall be conclusive and binding on the Company) to the
Company. In such event, (a) any request for a Fixed Consignment Fee consignments

                                      -11-
<PAGE>

shall be automatically withdrawn and shall be deemed a request for Floating
Consignment Fee consignments, (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 FPM to
make Fixed Consignment Fee consignments shall be suspended until FPM determines
that the circumstances giving rise to such suspension no longer exist, whereupon
FPM shall so notify the Company.

    2.7. Illegality.

    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 FPM to make or maintain Fixed Consignment Fee
consignments, FPM shall forthwith give notice of such circumstances to the
Company and thereupon (a) the agreement of FPM 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. The Company shall promptly pay FPM, any
additional amounts necessary to compensate FPM for any costs incurred by FPM in
making any conversion in accordance with this Paragraph, including any interest
or fees payable by FPM to lenders of funds obtained by it in order to make or
maintain its Fixed Consignment Fee consignments hereunder.

    2.8. Indemnity.

    The Company shall indemnify FPM and hold FPM harmless from and against any
loss, cost or expense (including loss of anticipated profits) that FPM may
sustain or incur as a consequence of (a) default by the Company 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 Precious Metal or the acceleration of the Obligations
pursuant to the terms of this Agreement), which expenses shall include any such
loss or expense arising from interest or fees payable by FPM to lenders of funds
obtained by it in order to maintain its Fixed Consignment Fee consignments; (b)
default by the Company in taking a consignment or conversion after the Company
has given (or is deemed to have given) its request therefor; and (c) the
purchase of Consigned Precious Metal 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 FPM to
lenders of funds obtained by it in order to maintain any such consignments.

    2.9. Maintenance of Consignment Limit.

    If the Consignment Facility Indebtedness at any time exceeds the Consignment
Limit, the Company will promptly, without further notice or demand by FPM,
either:

                                      -12-
<PAGE>

          (a)  make payment to FPM, as provided in Paragraph 2.3 hereof, for
               Consigned Precious Metal having an aggregate value sufficient to
               result in the remaining Consignment Facility Indebtedness being
               not more than the Consignment Limit, or

          (b)  deliver to FPM, either physically at FPM's vault in Providence,
               Rhode Island or through a recognized third party, sufficient of
               such Consigned Precious Metal to achieve the result referred to
               in the preceding clause (a). Any physical return of Consigned
               Precious Metal to FPM's vault in Providence shall be at the
               Company's expense and risk and shall only be credited to the
               Company's account upon FPM's assaying the value thereof.

    2.10. True Consignment; Grant of Security Interest.

          (a)  The parties hereto intend that this Agreement shall provide for a
               true consignment and that all transactions hereunder shall
               constitute true consignments of the Consigned Precious Metal.

          (b)  To secure the prompt and punctual payment and performance of all
               indebtedness, obligations and liabilities of the Company to FPM
               under the Consignment Facility, whether now existing or hereafter
               incurred, the Company hereby grants to FPM a continuing security
               interest in (i) the Consigned Precious Metal from time to time
               delivered hereunder by FPM to the Company, whether now existing
               or hereafter arising, (ii) all inventory of the Company which
               contains Consigned Precious Metal, whether now existing or
               hereafter arising, and (iii) all proceeds and products of the
               foregoing. Nothing contained in the foregoing grant is intended
               to conflict with the true consignment nature of this Agreement.

    2.11. Termination; Return of Consigned Precious Metal.

          (a)  The Consignment Facility shall terminate on the Maturity Date.
               ALL SUMS OUTSTANDING UNDER SAID CONSIGNMENT FACILITY WILL BE DUE
               AND PAYABLE UPON THE EARLIER OF (I) THE OCCURRENCE OF AN EVENT OF
               DEFAULT AND ACCELERATION OF THE OBLIGATIONS BY FPM, OR (II) THE
               MATURITY DATE. Upon the Maturity Date or upon such termination
               (by reason of an Event of Default), FPM may, at its option,
               suspend or terminate its obligation to consign or deliver
               Consigned Precious Metal hereunder. Termination of the
               Consignment Facility shall not affect the Company's duty to pay
               and perform its obligations to FPM hereunder in full.
               Notwithstanding termination, until all Obligations have been
               fully satisfied, FPM shall retain its security granted under the
               Security Agreement, and, except for those specific covenants and
               conditions dealing with the consigning of Precious Metal, all
               terms

                                      -13-
<PAGE>

               and conditions of this Agreement shall remain in full force and
               effect.

          (b)  Upon termination of the Consignment Facility for any reason, the
               Company shall within twenty-four (24) hours following such
               effective date of termination (i) deliver to FPM at FPM's vault
               in Providence, Rhode Island, any Consigned Precious Metal
               theretofore consigned to but not purchased and paid for in full
               by the Company; or (ii) make payment for all Consigned Precious
               Metal theretofore consigned to but not purchased and paid for in
               full by the Company, the purchase price thereof to be determined
               in accordance with Paragraph 2.3(c) hereof; or (iii) deliver to
               FPM, through a recognized third party, any Consigned Precious
               Metal theretofore consigned to but not purchased and paid for in
               full by the Company. Any physical return of Consigned Precious
               Metal to FPM's vault in Providence shall be at the Company's
               expense and risk and shall only be credited to the Company's
               account upon FPM's assaying the value thereof.

3.  CONDITIONS.

    3.1. Conditions to FPM's obligations hereunder.

          (a)  The obligation of FPM to consign and/or deliver Precious Metal
               hereunder is subject to the following conditions precedent:

               (i)    The representations and warranties set forth in Paragraph
                      5 hereof shall be true and correct on and as of the date
                      hereof and, unless the context thereof specifically makes
                      such representation or warranty applicable only upon an
                      earlier date, the date each consignment is requested and
                      is to occur.

               (ii)   The Company shall have executed and delivered to FPM, or
                      shall have caused to be executed and delivered to FPM in
                      form and substance acceptable to FPM, upon the execution
                      of this Agreement, all agreements required by FPM for the
                      purpose of securing payment and performance of the
                      Company's obligations under this Agreement, together with
                      any other documents required by the terms hereof or
                      thereof, including, without limitation, the Security
                      Agreement, and all insurance required by the terms hereof
                      and the Security Agreement, all of which shall at all
                      times remain in full force and effect.

               (iii)  FPM shall have received on the date hereof (i) the
                      favorable written opinion of counsel for the Company,
                      dated the date hereof, satisfactory to FPM and its counsel
                      in scope and

                                      -14-
<PAGE>

                      substance, stating, among other things, that this
                      Agreement has been duly authorized, executed and delivered
                      by the Company and constitutes the legal, valid and
                      binding obligation of the Company enforceable in
                      accordance with its terms; and (ii) such other supporting
                      documents and certificates as FPM or its special counsel
                      may request.

               (iv)   There shall have been no material adverse change in the
                      Company's financial condition or its financial or business
                      prospects, from those represented in any financial
                      statement or other information submitted to FPM or upon
                      which FPM have relied.

               (v)    All legal matters incident to the transactions hereby
                      contemplated shall be satisfactory to counsel for FPM.

               (vi)   No Event of Default as specified in Paragraph 7.1 hereof,
                      nor any event which upon notice or lapse of time or both
                      would constitute such an Event of Default, shall have
                      occurred and be continuing.

               (vii)  The Company shall have paid FPM a commitment fee of Twelve
                      Thousand Dollars ($12,000).

    3.2. Company's Confirmation.

    The Company's request to FPM for the consignment and delivery of Consigned
Precious Metal under the Consignment Facility shall be deemed to be a
representation and warranty to FPM that the respective conditions specified in
Paragraph 3.1 for such consignment have been satisfied.

4.  SECURITY.

    Security Interests. The Obligations of the Company under this Agreement
shall be secured by the Security Agreement.

5.  REPRESENTATIONS AND WARRANTIES.

    As a material inducement to FPM to consign Precious Metal, the Company
hereby represents and warrants to FPM (which representations and warranties
shall survive the execution of this Agreement and the consignment of Consigned
Precious Metal) that:

    5.1. Corporate Authority. The Company (i) is duly organized, validly
existing and in good standing under the laws of its state of incorporation, (ii)
has the requisite corporate power and authority to own its properties and to
carry on business as now

                                      -15-
<PAGE>

being conducted, and holds all material permits, authorizations and licenses,
without material restrictions or limitations, which are necessary for such
ownership or business activity, and (iii) is qualified to do business in every
jurisdiction where such qualification is necessary, and has the requisite
corporate power to execute, deliver and perform this Agreement, the Security
Agreement and any security document or documents securing the obligations of the
Company under this Agreement. The Company has no reason to believe that any such
material permits, authorizations or licenses of the Company will be revoked,
canceled, rescinded, modified or lost.

    5.2. No Conflict. The execution, delivery and performance by the Company of
the terms and provisions of this Agreement, the Security Agreement and any other
such security document(s) have been duly authorized by all requisite corporate
action and will not violate any provision of law, any order of any court or
other agency of government, the corporate charter, articles of incorporation or
by-laws of the Company or any indenture, agreement or other instrument to which
it is party, or by which it is bound, or be in conflict with, result in a breach
of, or constitute (with due notice or lapse of time or both) a default under,
or, except as may be provided by this Agreement, result in the creation or
imposition of any lien, charge or encumbrance of any nature whatsoever upon any
of the property or assets of the Company pursuant to, any such indenture,
agreement or other instrument.

    5.3. Litigation. There is no action, suit or proceeding at law or in equity
or by or before any governmental instrumentality or other agency now pending or,
to the knowledge of the Company threatened, against or affecting the Company
which, if adversely determined, would have a material adverse effect on the
business, operations, properties, assets or condition, financial or otherwise,
of the Company.

    5.4. Financing Statements. No financing statement or agreement is on file in
any public office pertaining to or affecting the Consigned Precious Metal or any
inventory of the Company, now owned or hereafter acquired, except for financing
statements in favor of FPM and the Lender.

    5.5. Binding Obligations. This Agreement, the Security Agreement and all
other agreements securing this Agreement have been duly executed and delivered
by the Company and constitute legal, valid and binding obligations of the
Company, enforceable in accordance with their respective terms, subject to
bankruptcy, insolvency, reorganization and other similar laws of general
application affecting the rights of creditors generally.

    5.6. No Event of Default. No Event of Default as defined in Paragraph 7.1
hereof, and no event which, with the passage of time or the giving of notice, or
both, would become such an Event of Default, has occurred and is continuing.

    5.7. ERISA. No "prohibited transaction" or "accumulated funding deficiency"
or "reportable event" has occurred with respect to any "single employer plan" of
the Company. The Company has not received notice that any "multi-employer plan"
as to which it or any "commonly controlled entity" would have liability if it or
any "commonly controlled entity" were to withdraw therefrom, is in
"reorganization" or "insolvent" (as each of the quoted terms is defined or used
in the Employee

                                      -16-
<PAGE>

Retirement Income Security Act of 1974, as amended ("ERISA") and the Internal
Revenue Code of 1986, as amended (the "Code")).

    5.8. Hazardous Substances. The Company is in compliance in all material
respects with all federal, state and local statutes relating to the handling,
storage, use or disposal of chemicals and other hazardous substances used in the
course of its business.

    5.9. Financial Statements. The Company has furnished to FPM the Financial
Statements. The Financial Statements have been prepared in accordance with GAAP
on a basis consistent with that of preceding periods and are complete and
correct and fairly present the financial condition of the Company as at said
dates, and the results of its operations for the year or other period ended on
said date. Since the date of the Financial Statements, there has been no
material adverse change in the financial condition of the Company.

6.  AFFIRMATIVE AND NEGATIVE COVENANTS.

    From the date hereof and until payment and performance in full of the
Obligations, the Company shall:

    6.1. Licenses, Permits and Taxes. Do or cause to be done all things
necessary to preserve, renew and keep in full force and effect its corporate
existence; comply with all laws and regulations applicable to it; and file all
tax returns required to be filed and pay or make adequate provision for the
payment of all taxes, charges and assessments.

    6.2. Financial Condition. Furnish to FPM promptly, from time to time, such
information regarding its operations, assets, business affairs and financial
condition, as FPM may reasonably request and promptly advise FPM of any material
adverse change in its condition, financial or otherwise.

    6.3. Inspections. Permit agents or representatives of FPM to inspect, at
reasonable hours, the Consigned Precious Metal and the Company's books and
records and to make abstracts or reproductions of such books and records.

    6.4. Financing Statements. Promptly join with FPM from time to time in
executing one or more financing statements pursuant to the Uniform Commercial
Code in form satisfactory to FPM, and execute such other instruments in form
suitable for recording or filing as may be reasonably required by FPM hereunder.

    6.5. Liens. Except for liens in favor of the Lender, not create, incur,
assume or suffer to exist any mortgage, pledge, lien, charge or other
encumbrance of any nature whatsoever on (a) any Precious Metal, whether or not
it has been consigned hereunder, or (b) any products or property now or
hereafter owned which does or will include Precious Metal, whether or not it has
been consigned hereunder.

                                      -17-
<PAGE>

    6.6. Corporate Status. Not dissolve or liquidate; not consolidate with or
merge with any other person or business unless it has provided FPM with thirty
(30) days' prior written notice thereof; and not change its corporate name
unless it has provided FPM with thirty (30) days' prior written notice thereof.

    6.7. Consigned Precious Metal. Not grant any security interest or ownership
rights to any customer with respect to any of the Consigned Precious Metal
whether or not such customers have prepaid orders for the Consigned Precious
Metal or any products or property which does or will include the Consigned
Precious Metal.

    6.8. Dividends. Not declare or pay any dividends to, or redeem capital stock
held by, or make any distributions of cash or property to, any of its
stockholders if an Event of Default has occurred and is then continuing or would
result from the giving of such dividend or an event has occurred and is
continuing or would result from the giving of such dividend which with the
passage of time or the giving of notice would be an Event of Default.

    6.9. Consignments. Not obtain Precious Metal on consignment or credit from
any supplier, lender, consignor or financial institution other than FPM unless
such consignor enters into an Intercreditor Agreement reasonably satisfactory to
FPM.

    6.10. Equity Gold Own inventory free and clear of all liens (except liens
in favor of FPM, the Bank and the Lender) with a gold content equal to not less
than five percent (5%) of the aggregate amount of Consigned Precious Metal.

    6.11. Financial Statements. Unless otherwise explicitly waived by FPM in
writing, furnish to FPM:

          (a)  within ninety (90) days after the end of each of the first three
               (3) fiscal quarters of each of the Company's Fiscal Years, a copy
               of the 10Q Report filed with the United States Securities and
               Exchange Commission; and

          (b)  within one hundred twenty (120) days after the end of each of the
               Company's Fiscal Years, similar unqualified consolidated and
               consolidating audited balance sheets and statements of earnings
               of the Company as of the end of such Fiscal Year and for such
               Fiscal Year in the form of a 10K Report filed with the United
               States Securities and Exchange Commission, prepared and certified
               by an independent certified public accountant selected by the
               Company and reasonably acceptable to FPM; and

          (c)  within thirty (30) days after the end of each month, a gold
               inventory summary for the Company in such form as FPM shall
               reasonably request certified by the chief financial officer of
               the Company or by an Authorized Representative of the Company;

          (d)  within thirty (3) days after the end of each fiscal quarter a
               certification and calculation of compliance with all financial

                                      -18-
<PAGE>

               covenants certified by the chief financial officer of the
               Company; and

          (e)  promptly, from time to time, such other information regarding its
               operations, assets, business, affairs and financial condition as
               FPM may reasonably request.

    6.12. ERISA. Not permit any pension plan maintained by the Company or by any
member of a "controlled group" (ERISA 210(c)) or "corporation or group of trades
or businesses under common control" (ERISA 210(d)) of which the Company is a
member to: (i) engage in any "prohibited transaction" (ERISA 2003(c)); (ii) fail
to report to FPM a "reportable event" (ERISA 4043) within thirty (30) days after
its occurrence; (iii) incur any "accumulated funding deficiency" (ERISA 302);
(iv) terminate its existence at any time in a manner which could result in the
imposition of a lien on the property of the Company or any of its Subsidiaries;
or (v) fail to report to FPM any "complete withdrawal" or "partial withdrawal"
by the Company or any of its Subsidiaries of an affiliate from a "multi-employer
plan" (ERISA 4203, 4205 and 4001 respectively) (the quoted terms are defined in
the respective sections of ERISA cited above).

    6.13. Environmental Matters. With respect to environmental matters
indemnify, defend, and hold FPM harmless from and against any claim, cost,
damage, expense (including, without limitation, attorneys' fees and expenses),
loss, liability, or judgment now or hereafter arising as a result of any claim
for environmental cleanup costs, any resulting damage to the environment and any
other environmental claims against the Company, any of its Subsidiaries, FPM, or
the Premises. The provisions of hereof shall continue in effect and shall
survive (among other events) any termination of this Agreement, foreclosure, a
deed in lieu of foreclosure transaction, payment and satisfaction of the
obligations evidenced hereby or incurred pursuant hereto, and release of any
collateral.

    6.14. Insurance. Keep its insurable properties adequately insured at all
times, by financially sound and reputable insurers, to such extent and against
such risks, including fire and other risks insured against by extended coverage,
and maintain liability and such other insurance as is customarily maintained by
companies engaged in similar businesses.

    6.15. Fixed Charge Coverage Ratio. Cause to be maintained as of the end of
each fiscal quarter, commencing with the fiscal quarter ending June 30, 2000, on
a rolling twelve (12) month basis, a Fixed Charge Ratio equal to or greater than
1.05 to 1.0.

    6.16. Leverage Ratio. Maintain a ratio of its total Consolidated
Indebtedness to its Tangible Net Worth less the preferred equity of ACI Capital
of not more than 1.75:1 at the end of each of its fiscal quarters, commencing
with its fiscal quarter ending June 30, 2000.

    6.17. Tangible Net Worth. Maintain a minium Tangible Net Worth of not less
than Twenty-Four Million Dollars ($24,000,000) at the end of its 2000 Fiscal
Year and

                                      -19-
<PAGE>

not less than Twenty-Five Million Dollars ($25,000,000) at the end of its 2001
Fiscal Year.

7.  EVENTS OF DEFAULT AND ACCELERATION.

    7.1. Events of Default. In each case of the occurrence of any one or more of
the following events (each of which is herein called an "Event of Default"):

          (a)  default in the payment of the purchase price for Consigned
               Precious Metal when the same becomes due and payable; or

          (b)  default in the payment of interest, consignment fees or other
               charges of the Company to FPM or the Bank, whether now or
               hereafter existing and howsoever arising, incurred or evidenced,
               which shall remain unpaid for five (5) days after notice from FPM
               or the Bank that the same is due and payable; or

          (c)  default in the performance of any of the Company's obligations or
               agreements to FPM or to the Bank or any affiliate of the Bank,
               whether now or hereafter existing and howsoever arising, incurred
               or evidenced, which shall remain in default for twenty (20) days
               after notice from FPM or the Bank; or

          (d)  any representation or warranty made herein or in any certificate,
               statement or agreement furnished in connection with this
               Agreement shall prove to be false or misleading in a material
               respect and which, at the time it is discovered to have been
               false or misleading, has a continuing material impact; or

          (e)  the Company shall (A) make an assignment for the benefit of
               creditors, or (B) file or suffer the filing of any voluntary or
               involuntary petition under any chapter of the Bankruptcy Code by
               or against itself, provided, however, that the involuntary filing
               of a petition in bankruptcy against the Company shall not
               constitute an Event of Default unless the Company fails to object
               and the petition is not discharged within sixty (60) days after
               the filing thereof, or (C) apply for or permit the appointment of
               a receiver, trustee or custodian of any of its property or
               business; or (D) become insolvent to suffer the entry of an order
               for relief under Title 11 of the United States Code; or (E) make
               an admission of its inability to pay its debts as they become
               due; or

          (f)  the occurrence of any material loss, theft or destruction of or
               damage to any of the Consigned Precious Metal; or

          (g)  the occurrence of any attachment on any of the Consigned Precious
               Metal; or

                                      -20-
<PAGE>

          (h)  the occurrence of any attachment for any obligation on any
               collateral for the Company's obligations hereunder and such
               attachment shall not be discharged or bonded against within
               twenty (20) days of the date such attachment was made; or

          (i)  the occurrence of a default in the payment or performance of any
               of the Company's obligations or agreements to the Lender, whether
               now or hereafter existing and howsoever arising, incurred or
               evidenced, which shall continue beyond any applicable grace
               period, whether or not such default is waived by the Lender, such
               waiver (if any) having no force and or effect upon FPM's rights
               under this Consignment Agreement; or

          (j)  default with respect to any evidence of indebtedness of the
               Company (other than to FPM, the Bank or the Lender) in excess of
               One Million Dollars ($1,000,000), if the effect of such default
               is to accelerate the maturity of such indebtedness or to permit
               the holder thereof to cause such indebtedness to become due prior
               to the stated maturity thereof, or if any indebtedness of the
               Company (other than to FPM, the Bank or the Lender) in excess of
               One Million Dollars ($1,000,000) is not paid, when due and
               payable, whether at the due date thereof or a date fixed for
               prepayment or otherwise; or

          (k)  the occurrence of any event of default (after the expiration of
               any applicable grace period) under any agreement now or at any
               time hereafter securing or guaranteeing performance of this
               Agreement, including, without limitation, the Security Agreement;

then in any such event, at the option of FPM (A) the obligations of FPM
hereunder shall terminate, (B) the Company shall promptly return to FPM all
Consigned Precious Metal theretofore consigned to but not purchased and paid for
by the Company, and (C) all the Company's obligations to FPM (including, without
limitation, those under the Consignment Facility) 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 the
Company or any instrument evidencing any of the Company's obligations to FPM.
FPM shall in addition have all of the rights and remedies of a secured party
under the Uniform Commercial Code with respect to any collateral now or
hereafter securing the Company's obligations hereunder. The Company shall, at
FPM's request, immediately assemble all such collateral and Consigned Precious
Metal, and FPM may go upon the Company's premises to take immediate possession
thereof. The Company shall pay all reasonable legal expenses and attorneys' fees
incurred by FPM in enforcing FPM's rights, powers and remedies under this
Agreement.

    7.2. Waiver. No failure or delay on FPM's part to exercise or to enforce any
of FPM's rights hereunder or under any other instruments or agreement evidencing
any of the Company's obligations to FPM or to require strict compliance with the
terms hereof or thereof in any one or more instances and no course of conduct on
FPM's

                                      -21-
<PAGE>

part shall constitute or be deemed to constitute a waiver or relinquishment of
any such rights hereunder unless it shall have signed a waiver thereof in
writing and no such waiver, unless expressly stated therein, shall be effective
as to any transaction which occurs after the date of such waiver or as to any
continuance of a breach after such waiver. FPM's rights hereunder shall continue
unimpaired notwithstanding any extension of time, compromise or other indulgence
granted by FPM to the Company with respect to any of the Company's obligations
to FPM or any instrument given FPM in connection therewith, and the Company
hereby waives notice of any such extension, compromise or other indulgence and
consents to be bound thereby as if it had expressly agreed thereto in advance.

8.  NO ASSIGNMENT.

    The rights of the Company under this Agreement may not be assigned to any
third party without the prior written consent of FPM. All covenants and
agreements of the Company contained herein shall bind the Company and its
successors and assigns, and shall inure to the benefit of FPM, its successors
and assigns.

9.  EXPENSES.

    The Company will upon request by FPM pay the reasonable legal and other
expenses incurred by FPM (including, without limitation, the fees and
disbursements of FPM's special counsel) in connection with the preparation,
implementation and amendment, if any, of this Agreement.

10. GOVERNING LAW; MISCELLANEOUS.

    10.1. Governing Law. This Agreement shall be governed by and shall be
construed under the laws of the State of Rhode Island. Any provision of this
Agreement which is prohibited or unenforceable in any jurisdiction shall, as to
such jurisdiction, be ineffective to the extent of such prohibition or
unenforceability without invalidating the remaining provisions hereof or
affecting the validity or enforceability of such provision in any other
jurisdiction.

    10.2. Waiver of Jury Trial. To the extent that it may lawfully do so, the
Company hereby submits to the jurisdiction of the courts of the State of Rhode
Island and the State of New York and the United States District Courts for the
District of Rhode Island and Districts of New York, as well as to the
jurisdiction of all courts from which an appeal may be taken from the aforesaid
courts, for the purpose of any suit, action or other proceeding arising out of
the breach by the Company of any of its obligations under and with respect to
this Agreement, and expressly waives any and all objections it may have as to
venue in any of such courts. THE COMPANY AND FPM MUTUALLY HEREBY KNOWINGLY,
VOLUNTARILY AND INTENTIONALLY WAIVE THE RIGHT TO A TRIAL BY JURY IN RESPECT OF
ANY CLAIM BASED HEREON, ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS
CONSIGNMENT AGREEMENT OR ANY OTHER CONSIGNMENT DOCUMENTS CONTEMPLATED TO BE
EXECUTED IN CONNECTION HEREWITH OR ANY COURSE OF CONDUCT, COURSE OF DEALINGS,

                                      -22-
<PAGE>

STATEMENTS (WHETHER VERBAL OR WRITTEN) OR ACTIONS OF ANY PARTY. THIS WAIVER
CONSTITUTES A MATERIAL INDUCEMENT FOR FPM TO ACCEPT THIS CONSIGNMENT AGREEMENT
AND EXTEND THIS CONSIGNMENT FACILITY.

    10.3. Survival of Representations and Covenants. This Agreement and all
covenants, agreements, representations and warranties made herein and in the
certificates delivered pursuant hereto, shall survive the consigning of
Consigned Precious Metal by FPM to the Company, and the execution and delivery
to FPM of this Agreement, and shall continue in full force and effect so long as
any indebtedness or obligation of the Company to FPM is outstanding and unpaid.
Whenever in this Agreement any of the parties hereto is referred to, such
reference shall be deemed to include the successors and assigns of such party;
and all covenants, promises and agreements contained in this Agreement by or on
behalf of the Company shall inure to the benefit of the successors and assigns
of FPM.

    10.4. Additional Costs. 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 FPM by any
central bank or other fiscal, monetary or other authority (whether or not having
the force of law), shall:

          (a)  subject FPM 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 Agreement or the Consignment
               Facility, or

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

          (c)  impose or increase or render applicable (other than to the extent
               specifically provided for elsewhere in this Agreement) any
               special deposit, reserve, assessment, liquidity, capital adequacy
               or other similar requirements (whether or not having the force of
               law) against assets held by, or deposits in or for the account
               of, or loans by, FPM, or

          (d)  impose on FPM any other conditions or requirements with respect
               to this Agreement, the Consignment Facility or any class of loans
               or commitments of which any of the Consignment Facility forms a
               part;

and the result of any of the foregoing is

          (e)  to increase the cost to FPM of making, funding, issuing,
               renewing, extending or maintaining any of the Consignment
               Facility, or

                                      -23-
<PAGE>

          (f)  to reduce the amount of principal, interest or other amount
               payable to FPM hereunder on account of any of the Consignment
               Facility, or

          (g)  to require FPM 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 FPM for
               the Company hereunder,

then, and in each such case, the Company will, upon demand by FPM, at any time
and from time to time and as often as the occasion therefor may arise, pay to
FPM such additional amounts as will be sufficient to compensate FPM for such
additional cost, reduction, payment or foregone interest or other sum. Such
amounts shall only be payable prospectively after written notice from FPM.

    10.5. Capital Adequacy. If any present or future law, governmental rule,
regulation, policy, guideline or directive (whether or not having the force of
law) or the interpretation thereof by a court or governmental authority with
appropriate jurisdiction affects the amount of capital required or expected to
be maintained by FPM or any corporation controlling FPM and FPM determine that
the amount of capital required to be maintained by them, or either of them, is
increased by or based upon the existence of the Consignment Facility made or
deemed to be made pursuant hereto, then FPM may notify the Company of such fact,
and the Company shall pay to FPM from time to time upon demand, as an additional
fee payable hereunder, such amount as FPM shall determine and certify in a
notice to the Company to be an amount that will adequately compensate FPM in
light of these circumstances for its increased costs of maintaining such
capital. Such amounts shall only be payable prospectively after written notice
from FPM. FPM shall allocate such cost increases among its customers in good
faith and on equitable basis.

    10.6. Certificate. A certificate setting forth any additional amounts
payable pursuant to Paragraphs 10.4 and 10.5 and a brief explanation of such
amounts which are due, submitted by FPM to the Company, shall be prima facie
evidence that such amounts are due and owing.

    10.7. Set-off. The Company hereby grants to FPM, a lien, security interest
and right of set off as security for all liabilities and obligations to FPM. At
any time, without demand or notice, FPM may set off the same or any part thereof
and apply the same to any liability or obligation of the Company even though
unmatured and regardless of the adequacy of any other collateral securing the
Obligations. ANY AND ALL RIGHTS TO REQUIRE FPM TO EXERCISE ITS RIGHTS OR
REMEDIES WITH RESPECT TO ANY OTHER COLLATERAL WHICH SECURES THE OBLIGATIONS,
PRIOR TO EXERCISING ITS RIGHT OF SET OFF WITH RESPECT TO SUCH DEPOSITS, CREDITS
OR OTHER PROPERTY OF THE COMPANY, ARE HEREBY KNOWINGLY, VOLUNTARILY AND
IRREVOCABLY WAIVED.

                                      -24-
<PAGE>

    10.8. Assignments. FPM shall have the unrestricted right at any time or from
time to time, and without Company's consent, to assign all or any portion of its
rights and obligations hereunder to one or more banks or other financial
institutions (each, an "Assignee"), and Company agree that they shall execute,
or cause to be executed, such documents, including without limitations,
amendments to this Agreement and to any other documents, instruments and
agreements executed in connection herewith as FPM shall deem necessary to effect
the foregoing at FPM's expense. In addition, at the request of FPM and any such
Assignee, the Company shall issue one or more new consignment agreements, as
applicable, to any such Assignee and, if FPM has retained any of its rights and
obligations hereunder following such assignment, to FPM, which new consignment
agreements shall be issued in replacement of, but not in discharge of, the
liability evidenced by the consignment agreement held by FPM prior to such
assignment and shall reflect the amount of the respective commitments and loans
held by such Assignee and FPM after giving effect to such assignment. Upon the
execution and delivery of appropriate assignment documentation, amendments and
any other documentation required by FPM in connection with such assignment, and
the payment by Assignee of the purchase price agreed to by FPM, and such
Assignee, such Assignee shall be a party to this Agreement and shall have all of
the rights and obligations of FPM hereunder (and under any and all other
guaranties, documents, instruments and agreements executed in connection
herewith) to the extent that such rights and obligations have been assigned by
FPM pursuant to the assignment documentation between FPM and such Assignee, and
FPM shall be released from its obligations hereunder and thereunder to a
corresponding extent.

    10.9. Participations. FPM shall have the unrestricted right at any time and
from time to time, without the consent of the Company, to grant to one or more
banks or other financial institutions (each, a "Participant") participating
interests in FPM's obligation to consign Precious Metal hereunder and/or any or
all of the consignments held by FPM hereunder. In the event of any such grant by
FPM of a participating interest to a Participant, whether or not upon notice to
Company, FPM shall remain responsible for the performance of its obligations
hereunder and Company shall continue to deal solely and directly with FPM in
connection with FPM's rights and obligations hereunder.

    10.10. Information. FPM may furnish any information concerning the Company
in its possession from time to time to prospective Participants and Assignees,
provided that FPM shall require any such prospective Participant and Assignee to
agree in writing to maintain the confidentiality of such information.

    10.11. Usury. All agreements between Company and FPM are hereby expressly
limited so that in no contingency or event whatsoever, whether by reason of
acceleration of maturity of the indebtedness evidenced hereby or otherwise,
shall the amount paid or agreed to be paid to FPM for the use or the forbearance
of the indebtedness evidenced hereby exceed the maximum permissible under
applicable law. As used herein, the term "applicable law" shall mean the law in
effect as of the date hereof provided, however that in the event there is a
change in the law which results in a higher permissible rate of interest, then
this Consignment Agreement shall be governed by such new law as of its effective
date. In this regard, it is

                                      -25-
<PAGE>

expressly agreed that it is the intent of Company and FPM in the execution,
delivery and acceptance of this Consignment Agreement to contract in strict
compliance with the laws of the State of Rhode Island from time to time in
effect. If, under or from any circumstances whatsoever, fulfillment of any
provision hereof or of any of the loan documents or the security documents at
the time of performance of such provision shall be due, shall involve
transcending the limit of such validity prescribed by applicable law, then the
obligation to be fulfilled shall automatically be reduced to the limits of such
validity, and if under or from circumstances whatsoever FPM should ever receive
as interest and amount which would exceed the highest lawful rate, such amount
which would be excessive interest shall be applied to the reduction of the
principal balance evidenced hereby and not to the payment of interest. This
provision shall control every other provision of all agreements between Company
and FPM.

    10.12. Lost Documents. Upon receipt of an affidavit of an officer of FPM
containing appropriate indemnification for the Company as to the loss, theft,
destruction or mutilation of this Consignment Agreement or any security document
which is not of public record, and, in the case of any such loss, theft,
destruction or mutilation, upon surrender and cancellation of this Consignment
Agreement or such security document, the Company will issue, in lieu thereof, a
replacement Consignment Agreement or security document of same tenor.

    10.13. Notices. All notices and other communications hereunder shall be in
writing, except as otherwise provided in this Agreement; and shall be sent by
any one of the following: certified mail, return receipt requested; overnight
courier; confirmed telecopier; or by hand and shall be addressed (i) if to the
Company, to it at the Company's Address and (ii) if to FPM, to it at FPM's
Address. 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. The address of any party hereto for such demands, notices and
other communications may be changed by giving notice in writing at any time to
the other party hereto.

    10.14. Amendments. No modification or waiver of any provision of this
Agreement, nor consent to any departure by the Company therefrom, shall in any
event be effective unless the same shall be in writing, and then such waiver or
consent shall be effective only in the specific instance, and for the purpose,
for which given. No notice to, or demand, on the Company, in any case, shall
entitle the Company to any other or future notice or demand in the same, similar
or other circumstances.

    10.15. Waiver. Neither any failure or any delay on the part of FPM in
exercising any right, power or privilege hereunder or under any other instrument
given as security therefor, shall operate as a waiver thereof, nor shall a
single or partial exercise thereof preclude any other or future exercise, or the
exercise of any right, power or privilege.

                                      -26-
<PAGE>

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

WITNESS:                               SEMX CORPORATION

                                       By:
-----------------------------------       -----------------------------------
                                          Title:

                                       FLEET PRECIOUS METALS INC.

                                       By:
-----------------------------------       -----------------------------------
                                          Title:

                                       By:
-----------------------------------       -----------------------------------
                                          Title:

                                      -27-
<PAGE>

                                  EXHIBIT INDEX
                                  -------------

Exhibit A         Authorized Representatives Letter

Exhibit B         Change in Consignment Limit Letter

Exhibit C         Change in Consignment Rate

<PAGE>

                                    EXHIBIT A
                                    ---------

                 (TO BE TYPED ON LETTERHEAD OF SEMX CORPORATION)

                                            as of June 30, 2000

To:      Fleet Precious Metals Inc. and
         Fleet National Bank
         111 Westminster Street
         Providence, Rhode Island 02903

Dear Sir or Madam:

         In accordance with that certain Amended and Restated Consignment
Agreement dated as of June 30, 2000 by and between SEMX Corporation ("SEMX") and
Fleet Precious Metals Inc. ("FPM"), SEMX hereby designates the following persons
as Authorized Representatives who are authorized by and on behalf of SEMX to
transact consignment transactions with Fleet Precious Metals Inc. ("FPM") under
the Consignment Facility, to effect purchase and sale transactions with FPM
(either as purchaser or seller) under the Consignment Facility, to direct FPM to
ship or transfer precious metals under the Consignment Facility, to authorize
payment of precious metals obligations under the Consignment Facility by means
of debiting SEMX' account(s) with FPM or Fleet National Bank (the "Bank"), to
settle purchase transactions under the Consignment Facility and generally to
bind SEMX in any and all transactions by and between FPM or the Bank and SEMX
under the Consignment Facility:

                  Name                      Title
                  ----                      -----

Each of FPM and the Bank is hereby authorized to rely on this authorization
until FPM receives further written notice canceling or amending the foregoing.

                                            Very truly yours,
                                            SEMX CORPORATION

                                            By:
                                               ---------------------------------
                                               Title:

<PAGE>

                                    EXHIBIT B
                                    ---------

                                                               ,200_

SEMX CORPORATION
One Labriola Court
Armonk, New York

Ladies and Gentlemen:

         Upon your acceptance of the terms of this letter agreement as evidenced
by your execution and delivery to FLEET PRECIOUS METALS INC. ("FPM") on or
before ______________, 200_, of a copy of this letter, SEMX CORPORATION (the
"Company") and FPM agree, effective _________________, 200_, to amend the
definition of the Consignment Limit contained in Paragraph 1.13 of that certain
Consignment Agreement dated as of June 30, 2000, as the same may have been
heretofore amended (the "Consignment Agreement"), by and between FPM and the
Company to read as follows:

         "1.13. "Consignment Limit" means an amount equal to:

                (a) the lesser of:

                    (i) ______________ Dollars ($__________), or

                    (ii) the value (as determined pursuant to Paragraph 2.2
                hereof) of  __________________ (_______) troy ounces of gold; or

                (b) such limit as FPM and the Company may agree upon from time
         to time as evidenced by an amendment in substantially the form of
         Exhibit C attached hereto and made a part hereof or in such other form
         as FPM shall require."

         Except as amended hereby, the Consignment Agreement and all agreements
securing or guaranteeing the Consignment Agreement shall remain in full force
and effect and are in all respect hereby ratified and affirmed.

                                            Very truly yours,
                                            FLEET PRECIOUS METALS INC.

                                            By:
                                               ---------------------------------
                                               Title:

Accepted and agreed as of the _____ day of _________, 200_.

SEMX CORPORATION

By:
   ---------------------------------
   Title:

<PAGE>

                                    EXHIBIT C
                                    ---------

                                                               ,200_

SEMX CORPORATION
One Labriola Court
Armonk, New York 10504

Ladies and Gentlemen:

         Pursuant to Paragraph 2.3(a) of that certain Consignment Agreement
dated ___________________, 2000, as the same may have been heretofore amended
(the "Consignment Agreement") by and among SEMX CORPORATION (the "Company") and
the undersigned, the undersigned hereby give notice to the Company that,
effective _________________, 200__ the consignment rate set forth in said
Paragraph 2.3(a) shall be changed from __________ percent (_____%) per annum to
__________ percent (_____%) per annum.

         Except as amended hereby, the Consignment Agreement shall remain in
full force and effect.

                                            Very truly yours,

                                            FLEET PRECIOUS METALS INC.

                                            By:
                                               ---------------------------------
                                            Title:
                                                  ------------------------------

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