CONTROLLED SUBSTANCES XXI 20

DEPARTMENTAL SUPERVISORS XII 16

DISCHARGE XI 15

GRIEVANCE PROCEDURE XIV 16

HOLIDAY PAY V 7

HOSPITALIZATION AND INSURANCE XIII 16

HOURS OF WORK III 3

INSPECTION AND SEARCH XIX 19

INTERFERENCE, DISCRIMINATION, COERCION XV 17

LAYOFFS VIII 11

LEAVE OF ABSENCE X 13

MANAGEMENT RIGHTS 1

MISCELLANEOUS XVII 18

NO STRIKES, LOCKOUTS XVI 18

PHYSICAL EXAMINATION XXII 20

RATE OF PAY IV 5

RECOGNITION I 2

SECURITY XVIII 19

SENIORITY VII 9

SEXUAL HARASSMENT XX 19

TERM OF AGREEMENT XXIII 21

TRANSFERS IX 12

UNION MEMBERSHIP AND DUES DEDUCTION II 2

VACATION PAY VI 8

WAGE RATES - SCHEDULE I 23-25

WAGE RATES - SCHEDULE II 26-28

WAGE RATES - SCHEDULE III 29-31

CONFIDENTIALITY AGREEMENT - SCHEDULE II 32

UNION AGREEMENT

AGREEMENT entered into this 29 day of March, 2007, as of December 5, 2006, between KREISLER INDUSTRIAL CORPORATION, A Division of KREISLER MANUFACTURING CORPORATION, for the plant located at 180 Van Riper Avenue, Elmwood Park, State of New Jersey, hereinafter known as the "Employer," and LOCAL 377, RWDSU, affiliated with AFL-CIO, located at 29-27 41st Avenue, Long Island City, New York 11101, hereinafter known as the "Union," and on behalf of said Union and on behalf of the covered employees of the Union now employed and hereafter to be employed by the Company at its Elmwood Park, New Jersey plant.

PART I: WHEREAS, the parties hereto have mutually agreed on the terms and conditions governing employment of employees in the bargaining unit, the parties agree to perform in good faith all the provisions of this Agreement and avoid work interruptions during the term thereof.

NOW, THEREFORE, it is agreed:

PART II: Except as delegated, modified or abridged by this Agreement, all rights, powers and authorities management had prior to this execution of this Agreement remain and reside in management. The listing of specific rights, hereafter in this Agreement is not intended to be, nor shall be considered, restrictive of, or a waiver of any right of management not listed and not specifically surrendered herein, whether or not such rights have been exercised by the Company in the past. Included in the rights of management, but not limited thereto, is the right of the Company to manage the plant; to direct the working force; to determine the working force; to plan, direct or control operations; to determine the work to be done in the plant; to determine the products to be manufactured in the plant; to transfer or discharge employees; to maintain efficiency of production and/or operations; to introduce new or improved methods, to introduce new equipment; to decide the nature of equipment or machinery to be used in the plant and the manning of the same; to automate; to determine the methods and processes of manufacturing or operations; to subcontract for such work or service as the Company deems necessary; to schedule production, to determine the methods of training employees; to determine all matters concerned with the designing and engineering of products; to determine the control of raw materials; to determine the methods of material handling and shipping; to move or transfer any equipment, operation, processes, methods or products that the Company determines is required.

Section 1 The Employer recognizes LOCAL 377, RWDSU, affiliated with AFL-CIO, as the sole collective bargaining agent for all of its leadmen, production, inspection, shipping, maintenance and machine shop employees. Excluding all non-production employees, e.g. engineering, professional, administrative, designing, sample-making, clerical (a term including clerks, material control clerks, and any other factory office clerical positions), foremen, assistant foremen, and all supervisory employees who have the authority to hire, promote, discharge, discipline or otherwise affect changes in the status of employees or who may effectively recommend such action.

Section 2 Part-time employees may perform bargaining unit work. All part-time employees who normally work twenty-five (25) hours or more in their normal work week must make application to join the Union and must pay Union dues as provided in Article II. A part-time employee working less than twenty-five (25) hours a week shall not be covered by this Agreement and shall not be entitled to the benefits hereunder, with the exception of the wage rate provided in Schedule I, annexed hereto.

Section 3 The Employer may hire up to eight (8) temporary employees for a period of up to six (6) months to cover for absent employees or to meet customer needs and these temporary employees will not be covered by this Agreement and will not be entitled to the benefits in this Agreement. Temporary employees will not be used to deprive regular employees of overtime.

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