AGREEMENT

Between

BREMEN BEARINGS OF RBC USA, INC.

PLYMOUTH, INDIANA PLANT

And

INTERNATIONAL UNION, UNITED

AUTOMOBILE, AEROSPACE AND

AGRICULTURAL IMPLEMENT WORKERS OF AMERICA,

THE
U. A.W.

And Its
Local 1368

Effective August 10, 2002

AGREEMENT

Between

BREMEN BEARINGS OF RBC USA, INC.
BREMEN, INDIANA PLANT

And

INTERNATIONAL UNION, UNITED

AUTOMOBILE, AEROSPACE AND

AGRICULTURAL IMPLEMENT WORKERS OF AMERICA,

THE
U. A.W.

And Its
Local 1368

Effective August 10, 2002

INDEX

2

Article I
AGREEMENT

Section 1.

This agreement, dated the 10th of August, 2002, is entered into between Bremen Bearings, RBC, INC. of Plymouth, Indiana plant, (hereinafter called the Company) and the INTERNATIONAL UNION, UNITED AUTOMOBILE, AEROSPACE AND AGRICULTURAL IMPLEMENT WORKERS OF AMERICA (UAW) and its Local 1368 (hereinafter called the Union), effective the 10^th of August, 2002.

Section 2.

In consideration of this Agreement, the parties agree that it is the intent and purpose of the parties hereto that this Agreement is the complete Agreement covering rates of pay, hours of work and working conditions to be observed between the parties, and to provide orderly relationships between the Company and the Union, and to secure prompt disposition of difference between the parties pertaining to the compliance with or application of this agreement.

Section 3.

In recognition of its responsibility as the exclusive agent of the employees, the Union agrees that it will actively cooperate in discouraging absenteeism and tardiness, and that it will actively support proper Company efforts to eliminate waste, improve quality, prevent accidents, and strengthen good will between the Company, the employees, the customers, the Union, and the public.  The Union also confirms that it subscribes to the concept of a fair days work for a fair days pay.

Section 4.

The rights provided in this Agreement shall apply only to employees who have completed their 90-day probationary period, provided, however, that the probationary period may be extended an additional 30 days by mutual agreement of the Company and the Union.  Employees who have not completed their probationary period shall have no rights under Article XIII, Sec. 1, Step 3 of this Agreement.

3

Article II

Union Recognition

Section 1.

The Company recognizes the Union as the sole collective bargaining agency with respect to rates of pay, hours of work, and conditions of employment for employees engaged on jobs in Bremen Bearings, at its Plymouth, Indiana plant.

Section 2.

The term employee as used in this Agreement, shall apply to all production and maintenance workers engaged on jobs at the Plymouth, Indiana plant who are on an hourly or incentive basis, but excludes watchmen, salaried employees and supervisory employees with authority to hire, promote, discharge, discipline or otherwise effect changes in the status of employees or effectively to recommend such action.

4

Article III

Agency Shop and Check-off

Section 1.

Each employee who on the effective date of this Agreement is a member of the Union in good standing and each employee who becomes a member after that date shall, as a condition of employment, maintain his membership in the Union.

Each employee hired on or after August 12, 1972, shall as a condition of employment, beginning on the 30^th day following the beginning of such employment acquire and maintain membership in the union.

Section 2.

The Company, for those employees who have heretofore, or hereafter by written authorization so directed, shall deduct from the first pay of each month the proper Union dues for the previous month, an initiation fee for new members, the assessments and promptly remit same to the International Secretary-Treasurer of the Union.  Changes in dues and assessments will be made only as authorized in writing by the International Secretary-Treasurer of the Union to the Company

Section 3.

If an employee is on vacation the week that Union dues are withheld, the Company agrees to provide the Union with the names along with the hourly rate that they were paid.

5

Article IV

Cooperative Union Management

Section 1.

The Company and the Union agree that they will not discriminate in the hiring of employees, or in their training, upgrading, downgrading, promotion, transfer, layoff, discipline, discharge or otherwise because of race, creed, color or national origin, age, union affiliations, sex, marital status or non-disqualifying disability.

Section 2.

The Company and the Union recognize the advisability of making every effort to constantly improve relationships between the Company, the Union and all employees.  To this end, a committee composed of two members of the Union and two members of management shall meet for one hour at least once a month on Company time to discuss problems and/or grievances which may cause a disruption in relationships or to suggest means of improving relationships.  The General Manager and the International Representative may attend these meetings.  The purpose of these meetings is to prevent, where possible, the use of the Arbitration Clause of this Agreement, as such is both costly to the parties and further, bilateral good faith collective bargaining is ineffective when a third party is called for the purposes of determining the intent of the Agreement.

Section 3.

a)                            It is the duty of every employee to apply himself diligently to his work during all of his working hours and to this end the Union will support the Companys efforts to curb absenteeism and the practices which curtail production; to eliminate waste and inefficiency; to improve the quality of workmanship; to prevent accidents, and to promote good will between the Company and the employees.

b)                           The Union will cooperate wholeheartedly with the Company in a concerted drive for better quality and quantity of production.  It should be the responsibility of each employee to see that the work performed is up to required standards and that no defective work is concealed.

6

Article V

Rights and Functions of Management

Section 1.

The control of all matters relative to the management and operation of the plant and the operation of the Companys business are vested exclusively in the Company and shall constitute a management right, except as these matters may be expressly limited by the terms of this Agreement.  The Company and the Union in the exercise of their rights shall observe the provisions of this Agreement.

Section 2.

The violation by either party of any provision of this Agreement shall not render the Agreement inoperative, and the sole and exclusive method of remedying any dispute which may arise hereunder shall be Article XIII, Settlement of Differences.

Section 3.

While it is understood that the Company may experiment with equipment, it is not the intent of the Company to replace any bargaining unit employee with a salaried employee through the exercise of this right.  Salaried employees may perform such work under their jurisdiction as instructing, experimenting, or relieving impediments in production, but no bargaining unit employee shall lose a work opportunity as a result.

Section 4.

When work which the bargaining unit normally performs is to be subcontracted, it will be done on the basis of time or money or special equipment or expertise.

When work is contracted out, the Company will inform the Union and explain the necessity prior to the subcontracting.

7

Section 5.

The Company may utilize temporary employees to do the work of those on leaves of absences, vacations, and other absences, and for unpredicted customer demands, to keep the operations running smoothly, but the Company can only use temporary employees when there are no regular employees available who will fill the need in the department on the shift.  A temporary employee shall not work in excess of 90 days per year per employee, unless the temporary employee is filling in for a regular employee on medical leave, in which case the temporary employee may work for the duration of the medical leave.  The temporary employee will be paid at the second tier rate and will not be eligible for benefits.  Temporary employees will be utilized only in positions of labor grades 1, 2, 3, 4, 5.

8

Article VI

Strikes and Lockouts

Section 1.

During the existence of this Agreement, the Union agrees that neither it nor any employee shall engage in any strikes, sympathy strikes, work stoppages, or slowing down of work, or any other interference with the normal production of the plant, or shipments from the plant products produced therein, or shipments of necessary materials to the plant.  Any violation of this Section by any employee shall be cause for dismissal or suspension.

In the event there is an interruption of production because of a concerted action, the Union, through the International Representative and Local president, shall immediately direct cessation of such interruption.

Section 2.

The Company, for itself, its supervisors and authorized representatives, agrees that during the term of this Agreement there shall be no lockouts in the Companys plant.

9

Article VII

Production Standards and Incentive Pay

Section 1.

It is understood that the Company may make, at any time; motion, time or methods studies required for the efficient operation of its business, and may establish standards and levels of performance, and may audit its standards when it deems this to be necessary in the interest of its business.  During the start-up and development period for equipment the employee operating machine will be paid his/her average earned rate based on earnings during the prior week for a period not to exceed eight weeks.  Thereafter, the employee will be paid average hourly earnings up to 120% of his/her base wage until the equipment is rated.  The Company has a right to assign any employee to operate a machine during the first eight weeks of the start-up and development period for the equipment.  Thereafter, departmental seniority will be used to determine the operator of this equipment until the equipment is rated.  The Company will make reasonable efforts to establish a rate for new equipment within 120 days after the equipment has been released for consistent production.

Section 2.

Once a production standard has been established, the equity of such a standard may be challenged under the procedure set forth in Article XIII, Settlement of Differences.  Should the Union dispute the equity or fairness of a production standard, the Company will review with a proper Union steward, upon his request, the data relating to the production standard.

Section 3.

A production standard may be changed whenever a substantial and continuing change in material, method, specifications, or equipment, or an accumulation of such changes, or an obvious clerical or mechanical error has occurred, that has a substantial effect on the productivity of the job.

10

Section 4.

It is recognized that the Company has the right to institute incentive standards, with the understanding that such incentive standards shall be set in such a manner so that qualified operators working at a normal pace can produce work at 100% of standard.  Incentive jobs include:

Assembly

Incentive pay for second tier employees hired after 8/10/02 is capped at 140% of standard plus % for each 1% above 140% of standard.

The Company guarantees that the incentive standard for the assembly job shall be paid off of the base rate for the assembly department.

Section 5.

When an employee performs any work that does not meet the required specifications, he shall not receive any pay or credit for the work except for his guaranteed base rate on a weekly basis.  However, when the cause for rework is beyond the operators control, this provision will not apply.

Section 6.

The Company and the Union will discuss and implement a performance incentive program that is acceptable to both parties.

11

Article VIII

Job Evaluation Plan

Section 1.

Jobs shall be classified in their appropriate work grades by the Company, using the National Metal Trades Associations Job Evaluation Plan.  Job descriptions, labor grades, and rates of pay have been prepared and are in effect for all present jobs.  When conditions warrant such action, the Company will establish new job classifications, change or add to and remove jobs or job descriptions.  When new jobs are established, or changes or additions made to existing jobs, new job descriptions will be drawn and evaluated by the Company in accordance with the NMTA Job Evaluation Plan.  Union must be furnished a current copy of the NMTA Job Evaluation Plan being used by the Company.  Where an incentive and non-incentive job are combined, the remaining job will be an incentive job if the preponderance (over 50%) of the job functions are functions of the incentive job.  Otherwise, the job will be deemed a non-incentive job.

Section 2.

All job rates of pay in effect at the time of this Agreement are effective and properly evaluated and shall not be the subject to process under the grievance procedure section of this contract.  Any new or changed job or job rate may be subject to processing under Article XIII, Settlement of Differences.  Such processing shall be confined to the result of the application of the NMTA Job Evaluation Plan.  The Plan itself shall not be subject to processing under Article XIII, Settlement of Differences, nor shall it be, in any manner or detail, subject to arbitration under this agreement.

Section 3.

The following method will be used in determining the work grade to be assigned to a job:  The job will be analyzed and reviewed by the Companys Job Analyst who will write up the description of the general details considered necessary to describe the principal functions of the job identified, which description shall not be construed as a detailed description of all of the work requirements that may be inherent in any given job.  A copy of all job descriptions shall be made available to the Union for their inspection and review.

12

Article IX

Hours of Work and Overtime Pay

Section 1.

This Article is intended only to provide a basis for calculating overtime.  It shall not be construed by the Union or any of its members as limiting or guaranteeing the number of hours to be worked by an individual employee or group of employees per day or per week.

Section 2.                       Work Week

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