Document:

EXHIBIT 10.4
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                        INDEMNIFICATION AGREEMENT
                        -------------------------

      THIS INDEMNIFICATION AGREEMENT ("Indemnification Agreement") is made
effective as of this 8th day of June, 2004, by LAKES OF THE MEADOW VILLAGE
HOMES CONDOMINIUM NO. ONE MAINTENANCE ASSOCIATION, INC., a Florida
corporation not for profit (the "Association"), on behalf of itself and its
members, and ARVIDA/JMB PARTNERS, L. P,, a Delaware limited partnership
d/b/a Arvida/JMB Partners, Ltd. ("Arvida/JMB").

      WHEREAS, the Association, on behalf of itself and its members,
Arvida/JMB and certain other Associations, on behalf of themselves and
their members, have entered into a Settlement Agreement (the "Settlement
Agreement") dated February 3, 2004 relating to the Lawsuit;

      WHEREAS, pursuant to the Settlement Agreement, the Association, on
behalf of itself and its members, has agreed to indemnify Arvida/JMB and
its Affiliates on the terms and conditions set forth in this
Indemnification Agreement;

      WHEREAS, the Association desires to enter into this Indemnification
Agreement, on behalf of itself and its members, in order to complete the
Settlement and pursue the common purpose of remediation of the Condominium
Units included in the Association's condominium; and

      WHEREAS, Arvida/JMB desires to enter into this Indemnification
Agreement in order to complete the Settlement and obtain the benefits of
the indemnification herein for itself and its Affiliates.

      NOW, THEREFORE, FOR GOOD AND VALUABLE CONSIDERATION, the receipt and
sufficiency of which are hereby acknowledged, and described in the
Settlement Agreement, the Association, on behalf of itself and its members,
and Arvida/JMB hereby agree as follows:

      1.   DEFINITION OF CERTAIN TERMS.  For purposes of this
Indemnification Agreement, capitalized terms used but not otherwise defined
in this Indemnification Agreement have the same definitions ascribed to
such terms in the Settlement Agreement.

      2.   INDEMNIFICATION OF ARVIDA/JMB.  The Association, on behalf of
itself and its members (hereinafter collectively referred to as the
"Indemnifying Party"), shall save, defend, indemnify and hold harmless
Arvida/JMB and its Affiliates (each, an "Indemnified Party" and
collectively, the "Indemnified Parties") from and against any and all
liability, loss, damage, cost, expense (including, without limitation,
reasonable attorneys' fees and expenses, whether incurred investigating any
threatened claim, at pre-trial, trial or appellate court) for:  (a) any and
all Released Claims of the Association, its members or their Related
Parties; (b) any and all Subrogation Claims attributable to the
Association, its members or their respective Related Parties; (c) any
breach by the Association or its members of a representation, warranty or
covenant made by or on behalf of the Association or its members in the
Settlement Agreement or any Related Agreement; (d) any and all claims,
demands, causes of action and other rights or remedies asserted by or on
behalf of a former, current or future owner or resident of a Condominium
Unit included in the Association's condominium for personal injury or death

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(which shall include, without limitation, claims for emotional distress,
pain and suffering, aggravation and mental anguish) arising out of or
relating to (i) any and all defects of every kind and nature (including,
without limitation, latent defects) in the design or construction of, or
other damage to, any Condominium Units included in the Association's
condominium, whether such defects or other damage previously existed,
currently exists or arise after the date of this Indemnification Agreement,
or (ii) any failure to make or undertake appropriate and/or timely
remediation, alteration or construction-related or design-related
activities for any Condominium Units included in the Association's
condominium, PROVIDED, HOWEVER, that such indemnification against a claim
for personal injury or death shall only apply to such a claim asserted in a
lawsuit filed after December 31, 2004; (e) any and all other claims,
demands, causes of action and other rights or remedies asserted by or on
behalf of a former, current or future owner or resident of a Condominium
Unit included in the Association's condominium, including, without
limitation, claims for alternative living expenses, storage and handling
expenses, and loss of use, loss of value, loss of financing or refinancing
opportunity, loss of rental and loss of enjoyment of a Condominium Unit in
the Association's condominium, arising out of or relating to (i) any and
all defects of every kind and nature (including, without limitation, latent
defects) in the design or construction of, or other damage to, any
Condominium Units included in the Association's condominium, whether such
defects or other damage previously existed, currently exists or arise after
the date of this Indemnification Agreement, or (ii) any failure to make or
undertake appropriate and/or timely remediation, alteration or
construction-related or design-related activities for any Condominium Units
included in the Association's condominium; (f) any and all claims, demands,
causes of action and other rights or remedies (including, without
limitation, for personal injury or death) asserted by any Person arising
out of or relating to any remediation, alteration or construction-related
or design-related activities, including, without limitation, any defective
or negligent remediation, alteration or construction-related or
design-related activities, made or undertaken at any time (whether before
or after the date of this Indemnification Agreement) for any Condominium
Units included in the Association's condominium; or (g) any and all claims,
demands, causes of action and other rights or remedies asserted by any
Person arising out of or relating to the past, present or future
governance, operation, maintenance or administration of the Association,
any other Village Homes condominium association or any of their respective
affairs or property, including, without limitation, the application of the
settlement payment made by Arvida/JMB pursuant to the Settlement Agreement
(all of the foregoing matters to be indemnified against hereinafter
referred to collectively as the "Indemnified Claims" and individually as an
"Indemnified Claim").  By way of example, but without limiting the
generality of the foregoing, indemnification by the Indemnifying Party
shall apply to (I) any claim against an Indemnified Party for reimbursement
of any loss, cost, expense, award, judgment, fine, penalty or other
obligation assessed or imposed by Miami-Dade County, Florida (or any
agency, department, bureau, board, office or other subdivision thereof)
against the Association or any owner of a Condominium Unit included in the
Association's condominium and arising out of any defects in or other damage
to such Condominium Unit, including any loss, penalty or other obligation
assessed or imposed against the owner of such Condominium Unit for any
failure to correct the defects cited in any Deficiency Notice for such
Condominium Unit; (II) any claim against an Indemnified Party by a former
owner of a Condominium Unit included in the Association's condominium for a
loss of market value resulting in a reduced sale price for such Condominium
Unit; (III) any claim against an Indemnified Party for alternative living
expenses or other costs and expenses incurred by an owner or resident of a
Condominium Unit included in the Association's condominium while any
remediation of such Condominium Unit occurs; and (IV) any claim against an
Indemnified Party by any Person for personal injury or death arising out of
any remediation of any Condominium Unit included in the Association's
condominium.

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      3.   NOTICE OF INDEMNIFIED CLAIM.  Arvida/JMB or other Indemnified
Party shall notify the Association of the nature of an Indemnified Claim
asserted in a lawsuit within a reasonable time after its assertion, but the
failure to so notify the Association shall not relieve the Indemnifying
Party of its obligations under this Indemnification Agreement for such
Indemnified Claim unless, and only to the extent, that such failure to
notify shall materially prejudice the Indemnifying Party in the defense of
such Indemnified Claim.

      4.   DEFENSE OF INDEMNIFIED CLAIM.  The Indemnifying Party shall be
entitled to participate at its own expense in the defense or, if it so
elects within a reasonable time after receipt of notice of the assertion in
a lawsuit of an Indemnified Claim, to assume the defense of such
Indemnified Claim, in which case the defense shall be conducted by counsel
chosen by it and reasonably satisfactory to the Indemnified Party or
Indemnified Parties that are a defendant or defendants therein. In the
event that the Indemnifying Party elects to assume the defense of any such
Indemnified Claim and retain such counsel, the Indemnified Party or
Indemnified Parties that are a defendant or defendants in the lawsuit shall
bear the fees and expenses of additional counsel, if any, thereafter
retained by such Indemnified Party or Indemnified Parties.  In the event
that the parties to any such lawsuit (including impleaded parties) include
the Indemnifying Party and any Indemnified Party, and such Indemnified
Party shall have been advised by counsel chosen by such Indemnified Party
that there is or may be a conflict of interest in the representation by the
same counsel of the Indemnifying Party and such Indemnified Party, the
Indemnifying Party shall not have the right to assume the defense of such
Indemnified Claim on behalf of such Indemnified Party, and the Indemnifying
Party will reimburse such Indemnified Party for the reasonable fees and
expenses of any counsel retained by such Indemnified Party.  In the event
that the Indemnifying Party shall fail or refuse to participate in the
defense or assume the defense of any Indemnified Claim within a reasonable
time after notice of its assertion, the Indemnified Party or Indemnified
Parties may defend or settle such Indemnified Claim, and in such event, the
amount of any judgment or settlement and any fees and expenses, including,
without limitation, attorneys' fees and expenses, incurred by the
Indemnified Party or Indemnified Parties for such Indemnified Claim shall
conclusively be deemed to be reasonable amounts incurred for such
Indemnified Claim and subject to indemnification hereunder.

      5.   ASSESSMENT OF MEMBERS TO PAY FOR INDEMNIFICATION.  The
Association covenants and agrees to assess its members, to the extent
necessary and to the extent permitted by applicable law, in order to enable
the Association to satisfy any and all obligations of the Indemnifying
Party under this Indemnification Agreement, including, without limitation,
the payment to an Indemnified Party of any Indemnified Claim. The
Association, on behalf of itself and its members, agrees that an
Indemnified Party shall be entitled to specific performance of the
provisions of this Paragraph 5. In order to secure the Association's
assessment obligation as aforesaid, and in addition to the specific
performance remedy stated above, the Association hereby assigns to
Arvida/JMB (on behalf of itself and all other Indemnified Parties) the
Association's right, duty and authority to levy assessments as aforesaid,
as well as the right to record and enforce the lien for same as set forth
in the Association's Declaration of Condominium and in Florida Statute
718.116(5). In the event the Association has insurance coverage for an
Indemnified Claim, the Association agrees to assign to the Indemnified
Party or Indemnified Parties the proceeds (and any and all rights thereto)
of such insurance coverage.

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      6.   RIGHT TO DEAL WITH THE ASSOCIATION ONLY.  In all matters
relating to an Indemnified Claim, an Indemnified Party is entitled to deal
exclusively with the Association as the Indemnifying Party, whether
providing notice of an Indemnified Claim, seeking payment for an
Indemnified Claim, or otherwise, and nothing in this Indemnification
Agreement shall require any Indemnified Party to provide any notice to,
seek payment from or otherwise deal with any members of the Association in
order to have any Indemnified Claim paid in full or otherwise have the
obligations of the Indemnifying Party under this Indemnification Agreement
performed, PROVIDED, HOWEVER, that nothing in this Paragraph 6 shall limit
or adversely affect the rights of Arvida/JMB (on behalf of itself and all
other Indemnified Parties) or the obligations of the Association and its
members under Paragraph 5 of this Indemnification Agreement.

      7.   OTHER PROVISIONS.  Paragraphs 14 (Governing Laws), 16 (Time of
Essence), 17 (Assignment of Settlement Agreement and Related Agreements),
19 (No Admission of Liability), 20 (Use the of Settlement Agreement), 21
(Drafting of Agreements), 22 (Entire Agreement), 23 (Independent Judgment),
24 (Binding Agreement), 25 (Headings), 26 (Notices), 27 (Counterparts), 28
(Further Assurances), 29 (Waiver), 30 (Prevailing Party Attorneys' Fees and
Costs), 31 (Limitation of Liability), 32 (Survivability), 33 (Provisions
Severable) and 34 (Certain Rules of Construction) of the Settlement
Agreement are hereby incorporated herein by reference as though fully set
forth herein, and references in those paragraphs to "Settlement Agreement"
shall be deemed herein to be references to this Indemnification Agreement
to the extent the same may be necessary or appropriate for proper
construction.

                       (SIGNATURE PAGE TO FOLLOW)

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      IN WITNESS WHEREOF, the Association and Arvida/JMB have executed this
Indemnification Agreement effective as of the date first written above.

                                  ASSOCIATION:

                                  LAKES OF THE MEADOW VILLAGE HOMES
                                  CONDOMINIUM NO. ONE MAINTENANCE
                                  ASSOCIATION, INC.,
                                  a Florida corporation not for profit,
                                  on its behalf and on behalf
                                  of its members

                                  By:   /s/ Lazaro Cabezes
                                        ------------------------------

                                  Name:  Lazaro Cabezes
                                  Title: Pres.

                                  ARVIDA/JMB:

                                  ARVIDA/JMB PARTNERS, L.P.,
                                  a Delaware limited partnership
                                  d/b/a Arvida/JMB Partners, Ltd.

                                  By:   Arvida/JMB Managers, Inc.
                                        General Partner

                                  By:   /s/ Gary Nickele
                                        ------------------------------

                                  Name:  Gary Nickele
                                  Title: President

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<PAGE>

STATE OF FLORIDA       )
                       )     SS.
COUNTY OF MIAMI-DADE   )

      BEFORE ME, the undersigned, a Notary Public, duly commissioned,
personally appeared Lazaro Cabezes in his or her capacity as President of
LAKES OF THE MEADOW VILLAGE HOMES CONDOMINIUM NO. ONE MAINTENANCE
ASSOCIATION, INC., who is personally known to me or has produced __________
as identification, and acknowledged the execution of the foregoing
instrument to be his or her free and voluntary act and deed in his or her
capacity as aforesaid and the free and voluntary act and deed of said
corporation for the uses and purposes therein mentioned.

      IN WITNESS WHEREOF, I have hereunto set my hand and seal at the
County and State set forth above, this 24th day of May 2004.

                                  /s/ Donna L. Baer
                                  ------------------------------
                                  Notary Public

                                  Donna L. Baer
                                  ------------------------------
                                  Printed Notary Name

OFFICIAL NOTARY SEAL
DONNA L. BAER
NOTARY PUBLIC STATE OF FLORIDA
COMMISSION NO. DD180754
MY COMMISSION EXP. APR. 8, 2007

<PAGE>

STATE OF ILLINOIS      )
                       )     SS.
COUNTY OF COOK         )

      BEFORE ME, the undersigned, a Notary Public, duly commissioned,
personally appeared GARY NICKELE, in his capacity as PRESIDENT of
ARVIDA/JMB MANAGERS, INC., the General Partner of ARVIDA/JMB PARTNERS,
L.P., who is personally known to me, and acknowledged the execution of the
foregoing instrument to be his free and voluntary act and deed in his
capacity as aforesaid and the free and voluntary act and deed of said
corporation, as general partner aforesaid, for the uses and purposes
therein mentioned.

      IN WITNESS WHEREOF, I have hereunto set my hand and seal at the
County and State set forth above, this 21st day of May 2004.

                             /s/ Marilyn A. Corbett
                             ------------------------------
                             Notary Public

                             Marilyn A. Corbett
                             ------------------------------
                             Printed Notary Name

"OFFICIAL SEAL"

MARILYN A. CORBETT
Notary Public, State of Illinois
My Commission Expires 02/28/05

<PAGE>

                        SCHEDULE TO EXHIBIT 10.4
                        -------------------------

      In addition to the foregoing Indemnification Agreement, the
Partnership also entered in substantially identical Indemnification
Agreements as follows:

      1)   Indemnification Agreement by Lakes of the Meadow Village Homes
           Condominium No. Two Maintenance Association, Inc., on behalf of
           itself and its members, and Arvida/JMB Partners, L.P., dated as
           of June 8, 2004.

      2)   Indemnification Agreement by Lakes of the Meadow Village Homes
           Condominium No. Three Maintenance Association, Inc., on behalf
           of itself and its members, and Arvida/JMB Partners, L.P., dated
           as of June 8, 2004.

      3)   Indemnification Agreement by Lakes of the Meadow Village Homes
           Condominium No. Four Maintenance Association, Inc., on behalf
           of itself and its members, and Arvida/JMB Partners, L.P., dated
           as of June 8, 2004.

      4)   Indemnification Agreement by Lakes of the Meadow Village Homes
           Condominium No. Five Maintenance Association, Inc., on behalf
           of itself and its members, and Arvida/JMB Partners, L.P., dated
           as of June 8, 2004.

      5)   Indemnification Agreement by Lakes of the Meadow Village Homes
           Condominium No. Six Maintenance Association, Inc., on behalf of
           itself and its members, and Arvida/JMB Partners, L.P., dated as
           of June 8, 2004.

      6)   Indemnification Agreement by Lakes of the Meadow Village Homes
           Condominium No. Seven Maintenance Association, Inc., on behalf
           of itself and its members, and Arvida/JMB Partners, L.P., dated
           as of June 8, 2004.

      7)   Indemnification Agreement by Lakes of the Meadow Village Homes
           Condominium No. Nine Maintenance Association, Inc., on behalf
           of itself and its members, and Arvida/JMB Partners, L.P., dated
           as of June 8, 2004.<PAGE>
                                                                    Exhibit 10.1

                                                Prepared by:

                                                /s/ JEFFREY G. ALBERTSON
                                                ------------------------
                                                Albertson Ward
                                                36 Euclid Street, P.O. Box 685
                                                Woodbury, NJ 08096
                                                (856)853-7770

                                      NOTE

$4,000,000.00                                            WOODBURY, NEW JERSEY
                                                         JUNE 9, 2004

      BETWEEN the Borrower K-TRON INTERNATIONAL, INC., A NEW JERSEY CORPORATION,
whose address is Routes 55 and 553, P.O. Box 888, Pitman, New Jersey 08071-0888,
referred to as "Borrower".

      AND the Lender, THE BANK, whose address is 100 Park Avenue, Woodbury, New
Jersey 08096, referred to as "THE BANK".

      The phrase "THE BANK" means the original Lender and anyone else who takes
this Note by transfer.

      BORROWER'S PROMISE TO PAY PRINCIPAL AND INTEREST. In return for a loan to
be funded by THE BANK to Borrower on this date, Borrower promises to
pay$4,000,000.00 (called "principal"), plus interest, to the order of THE BANK.
Of this amount, Borrower will borrow $1,600,000.00 at a per annum fixed
interest rate of 5.75%; and shall borrow the balance thereof, being
$2,400,000.00, on a floating rate basis equal to the one (1) month LIBOR rate
plus 185 basis points. The proceeds of the loan will be used to repay
approximately $4,000,000.00 of debt owed by Borrower to the former stockholders
of Pennsylvania Crusher Corporation. Interest will be charged on the outstanding
principal balance due on this Note from time to time as required herein until
all principal has been paid. Interest shall be calculated hereunder for the
actual number of days that principal is outstanding based on a year of 360 days.

      PAYMENTS. All payments made hereunder shall be paid on the sixth (6th) day
of each month beginning July 6, 2004. The loan shall be repaid as follows:
Interest-only payments shall be made monthly beginning July 6, 2004 through
December 6, 2004. Thereafter, forty-eight (48) principal payments of

<PAGE>

$50,000.00, plus interest, shall be due monthly beginning January 6, 2005
through December 6, 2008 . Thereafter, eleven (11) principal payments of
$133,333.00, plus interest, shall be due monthly beginning January 6, 2009
through November 6, 2009, with one final payment of all outstanding principal
and interest due December 6, 2009. All scheduled principal and interest payments
shall be applied to the variable and fixed interest rate portions of the loan in
the same ratio as those floating and fixed rate portions bear to each other
(initially 60/40). Borrower will pay all amounts owed under this Note no later
than DECEMBER 6, 2009. All payments will be made to THE BANK at the address
shown above or to a different place if required by THE BANK.

      LIBOR RATE. For the floating rate portion of the Note, the variable
interest rate will equal the one (1) month LIBOR rate plus 185 basis points. The
rate of interest shall be established on the twenty-fifth (25th) day of each
calendar month, during the term of this Note, or the next business day
thereafter, with such rate of interest to be effective on the first business day
of the next calendar month. For purposes of this Note, the one (1) month LIBOR
rate shall be defined as the London Interbank Offered Rate (LIBOR) for
maturities of one (1) month, expressed as an annual yield, as reported in the
Wall Street Journal or a comparable source on the date the quote by THE BANK is
given (the "LIBOR Index Rate"). The rate of interest so established shall remain
in effect until the first business day of the succeeding calendar month, at
which time the rate of interest shall be reestablished as provided herein. The
interest rate established at time of funding under the terms of this Note shall
be the same as if established on the first of said month.

      SECURITY. As security for this instrument, Borrower's subsidiary, K-Tron
America, Inc., has delivered its Guaranty; a third mortgage bearing even date
herewith covering premises designated on the official tax map as Lot 3.01, Block
249, Township of Mantua, Gloucester County, New Jersey, which Mortgage is about
to be recorded in the office of the Clerk of Gloucester County; and a third lien
security interest, subject only to THE BANK'S first and second lien perfected
security interests, in the accounts receivable, inventory, and equipment now
owned or hereafter acquired by Guarantor located at Routes 55

                                     - 2 -

<PAGE>

and 553, Pitman, New Jersey 08071. The provisions of any mortgage or security
agreement given as security for this Note are incorporated herein by reference.

      COVENANTS AND CONDITIONS:

      1.    Borrower has provided to THE BANK acceptable current financial
statements and will provide annual updates on the Borrower and Guarantor. The
updates for financial statements and tax returns are to be submitted within
thirty (30) days of the date requested by THE BANK, but not earlier than the
dates that any such statements are required by the U.S. Securities and Exchange
Commission. Should the Borrower or Guarantor fail to submit required financial
information within the required time period,THE BANK may, at its sole option,
increase the interest rate on this Note by one-half (1/2) of one (1) percent per
annum.

      2.    The Borrower and the Guarantor must continue to maintain with THE
BANK a meaningful deposit relationship.

      3.    Borrower and Guarantor agree that until all obligations hereunder
are fully paid and discharged, Borrower will not without the prior written
consent of THE BANK:

            A.    Permit the consolidated debt to net worth ratio of Borrower to
be more than 1.25 at fiscal year-end 2004 and each fiscal year-end thereafter.

            B.    Permit the consolidated net worth of Borrower to be less than
$34 million at fiscal year-end 2004 and each fiscal year-end thereafter.

            C.    Both of the above covenants set forth in paragraphs A and B
above shall be calculated exclusive of declines due to changes in foreign
exchange rates subsequent to January 3, 2004.

            D.    Permit the consolidated annual debt coverage ratio of Borrower
at each fiscal year end to be less than 1.50.

            E.    Each of covenants set forth in paragraphs A, B, and D above
shall be calculated without taking into account Pennsylvania Crusher Corporation
and its subsidiaries.

                                     - 3 -

<PAGE>

            F.    Permit upstreaming of funds from Guarantor to Borrower or
K-Tron Technologies, Inc. or downstreaming of funds from Borrower to
Pennsylvania Crusher Corporation or its subsidiaries, except for (i) management
fees consistent with past practice and royalties paid in the ordinary course of
business, (ii) dividends or other advances paid or made to enable Borrower to
pay any obligation to THE BANK in connection with this or any other loan, and
(iii) the settlement of inter-company accounts in the ordinary course of
business consistent with past practice.

            G.    Permit any merger or acquisition by Borrower or its
subsidiaries involving consideration of more than $4 million without the written
approval of THE BANK.

      PREPAYMENT: As to the amount borrowed under the fixed interest rate
portion of this Note, Borrower shall have the right at any time during the term
hereof to prepay all or a part of the principal balance of such portion then
outstanding under this Note upon payment of the premiums and charges, if any,
hereinafter set forth. A principal prepayment requiring such a premium or charge
shall be deemed to have occurred upon Borrower's payment to THE BANK in any Loan
Year of any sum in reduction of the principal which exceeds one-third (1/3) of
the original principal amount borrowed under the fixed interest rate portion,
excluding principal payments (including scheduled amortization) the Borrower is
obligated to make under any other terms or provisions of this Note or any other
document constituting a part of the loan transaction evidenced by this Note.
Upon the occurrence of such a principal prepayment, including prepayment of the
entire debt, THE BANK shall be entitled to charge and Borrower shall be
obligated to pay, in addition to interest and all other charges then properly
due, a prepayment premium equal to 2% of the amount prepaid. The term "Loan
Year" as used herein is defined as any period of one year commencing on the date
of the Note or on any anniversary of such date. Except as provided above, there
shall be no prepayment premium or charge on a prepayment of any amount borrowed
under the fixed interest rate portion.

      At no time will there by a prepayment penalty on the variable interest
rate portion of the loan, which portion may be prepaid in full or in part at any
time.

                                     - 4 -

<PAGE>

      LATE CHARGE: The effective date of the receipt by the holder of any
installment of this Note shall be the day on which the holder receives cash or
collected funds at the place of payment as specified herein in payment of any
such installment. Borrower shall be entitled to a FIFTEEN (15) DAY grace period
after which period a "late charge" of $0.05 FOR EACH $1.00 OVERDUE may be
charged by the holder for the purpose of defraying the expense incident to
handling such delinquent payment.

      DEFAULT: If any installment of this Note or interest payment is not paid
within 15 days of the date and at the place herein specified and after THE BANK
has given Borrower 15 days' written notice to cure said default, THE BANK may at
its option, and without further notice declare this Note to be in default and
the entire principal balance then remaining unpaid together with all interest
which shall have accrued on the unpaid principal balance from and after the date
of such default shall be due and payable in full without notice.

      It shall be a default of this Note if Borrower shall default in any
payment of principal or interest on any indebtedness or contingent obligation
for money borrowed (other than Borrower's obligations under this Note) or any
other event shall occur, the effect of which is to permit such indebtedness or
contingent obligation to be declared or such indebtedness or contingent
obligation shall otherwise become due prior to its stated maturity, provided,
however, that this provision shall not apply concerning obligations other than
Borrower's obligations under this Note unless the amount involved exceeds
$50,000.00.

      If a default shall occur in this loan and not be cured as provided in the
loan documents or otherwise agreed to by THE BANK, THE BANK shall, after
declaring the loan to be in default, have the right to increase the interest
rate TWO (2%) PERCENT PER YEAR in excess of the note rate. This provision is in
addition to any late charges that may be due.

      ATTORNEY'S FEE: If this Note is placed in the hands of an attorney for
collection because of a default in the terms hereof or in the terms of any
documents given as security for the within obligation, the undersigned agrees to
pay the reasonable fees and costs of such attorney, whether or not legal action
is

                                     - 5 -

<PAGE>

instituted and further consents that if a judgment is entered in any action the
amount of such fees shall form a part of such judgment in addition to any fees
allowed by Statute or Rule of the Court.

      COMMITMENT LETTER COMPLIANCE: This Note is contingent upon Borrower's
compliance with all of the terms and conditions contained in the commitment
letter issued by THE BANK to Borrower on May 28, 2004. Upon breach of any term
or condition contained therein,THE BANK shall have the right to declare this
loan in default and demand payment in full of the principal balance remaining
unpaid, together with all interest which shall have accrued thereon. Further,
providing the said commitment letter so provides, THE BANK reserves the right to
increase the interest rate in accordance with the provisions of the loan
commitment for failure of the Borrower or any guarantor to submit required
financial information within thirty days of the date of request by THE BANK.
Should there be any conflict between the provisions of said commitment letter
and this Note, the provisions of this Note shall apply.

      PAYMENT AT MATURITY: THIS LOAN IS PAYABLE IN FULL AT MATURITY OR UPON
DEMAND IN THE EVENT OF A DEFAULT HEREUNDER OR UNDER THE TERMS OF ANY OTHER
APPLICABLE LOAN INSTRUMENT. YOU MUST REPAY THE ENTIRE PRINCIPAL BALANCE OF THE
LOAN AND UNPAID INTEREST THEN DUE. THE BANK IS UNDER NO OBLIGATION TO REFINANCE
THE LOAN AT THAT TIME. YOU WILL THEREFORE BE REQUIRED TO MAKE PAYMENT OUT OF
OTHER ASSETS YOU MAY OWN OR YOU WILL HAVE TO FIND A LENDER WILLING TO LEND YOU
THE MONEY. IF YOU REFINANCE THIS LOAN AT MATURITY, YOU MAY HAVE TO PAY SOME OR
ALL OF THE CLOSING COSTS NORMALLY ASSOCIATED WITH A NEW LOAN EVEN IF YOU OBTAIN
REFINANCING FROM THE BANK.

                                     - 6 -

<PAGE>

      WAIVER OF PRESENTMENT: EACH AND ALL PARTIES hereto whether maker,
endorsers, sureties, guarantor or otherwise do hereby jointly and severally
waive presentment and demand for payment, notice of dishonor, protest and notice
of protest.

      IN WITNESS WHEREOF, the Borrower hereunder has hereunto set its hand and
seal the day and year first above written.

Attest:                               K-Tron International, Inc.
                                      By:

/s/ Mary E. Vaccara                   /s/ Edward B. Cloues, II
-----------------------------         ------------------------------------------
Mary E. Vaccara, Secretary            Edward B. Cloues, II, Chairman and Chief
                                      Executive Office

Sworn to and Subscribed
before me on June 9, 2004

___________________________
JEFFREY G. ALBERTSON, ESQ.
     ATTORNEY AT LAW
  STATE OF NEW JERSEY

                                     - 7 -

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