JEFFREY G. ALBERTSON, ESQ.
BETWEEN the Borrower(s) K-TRON AMERICA, INC., A DELAWARE 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 of Gloucester County, whose address is 100 Park Avenue, Woodbury, New
Jersey 08096, referred to as "THE BANK".
The word "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 the loan that Borrower may
receive hereunder, Borrower promises to pay the maximum principal sum of $7,000,000.00 or such lesser
amount as may be advanced by THE BANK as hereinafter set forth (called "principal"), plus interest to the order
of THE BANK. The Borrower may borrow up to one-half of the amount of the loan, not to exceed
$3,500,000.00, on a fixed interest rate basis, and all or any part of the loan on a floating rate basis as Borrower
elects at time of funding under this Note. Interest will be charged on that part of the principal which has not been
paid from the date of funding of this Note 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. Interest rate charged shall
be as follows:
1. For the fixed rate portion of the Note, a fixed interest rate equal to the two (2) year Treasury rate plus 175
basis points, such rate to be determined as of the date of funding under the terms of this Note. Said rate
established at time of funding shall be fixed for two (2) years from the date of funding of the Note. At the two (2)
year anniversary of the funding under the terms of this Note, the rate on this fixed interest rate portion of the Note
shall change to the variable rate of interest described in paragraph 2 below, unless the Borrower then elects to
accept a fixed rate option to be determined and offered by THE BANK at that time.
2. For the floating rate po