AGREEMENT Between KREISLER INDUSTRIAL CORPORATION, A DIVISION OF KREISLER MANUFACTURING CORPORATION - AND - LOCAL 377, RWDSU, AFFILIATED WITH AFL-CIO December 5, 2003 - December 4, 2006

EXHIBIT 10.7

AGREEMENT

Between

KREISLER INDUSTRIAL CORPORATION,

A DIVISION OF KREISLER MANUFACTURING CORPORATION

- AND -

LOCAL 377, RWDSU, AFFILIATED WITH AFL-CIO

December 5, 2003 - December 4, 2006

INDEX

		Article		Page
CONTROLLED SUBSTANCES		XXI		21
DEPARTMENTAL SUPERVISORS		XXX		00
XXXXXXXXX		XX		00
GRIEVANCE PROCEDURE		XIV		17
HOLIDAY PAY		V		8
HOSPITALIZATION AND INSURANCE		XIII		17
HOURS OF WORK		III		3
INSPECTION AND SEARCH		XIX		20
INTERFERENCE, DISCRIMINATION, COERCION		XV		18
LAYOFFS		VIII		11
LEAVE OF ABSENCE		X		13
MANAGEMENT RIGHTS				1
MISCELLANEOUS		XVII		19
NO STRIKES, LOCKOUTS		XVI		18
RATE OF PAY		IV		5
RECOGNITION		I		2
SECURITY		XVIII		19
SENIORITY		VII		10
SEXUAL HARASSMENT		XX		20
TERM OF AGREEMENT		XXII		21
TRANSFERS		IX		12
UNION MEMBERSHIP AND DUES DEDUCTION		II		2
VACATION PAY		VI		9
WAGE RATES - SCHEDULE I				23-25
CONFIDENTIALITY AGREEMENT - SCHEDULE II				26

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UNION AGREEMENT

AGREEMENT entered into this 30 day of April, 2004, as of December 5, 2003, between KREISLER INDUSTRIAL CORPORATION, A Division of KREISLER MANUFACTURING CORPORATION, for the plant located at 000 Xxx Xxxxx Xxxxxx, Xxxxxxx Xxxx, Xxxxx of New Jersey, hereinafter known as the “Employer,” and LOCAL 377, RWDSU, affiliated with AFL-CIO, located at 00-00 00xx Xxxxxx, Xxxx Xxxxxx Xxxx, Xxx Xxxx 00000, 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.

PREAMBLE

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:

MANAGEMENT RIGHTS

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 xxxxxxx 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

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methods of material handling and shipping; to move or transfer any equipment, operation, processes, methods or products that the Company determines is required.

ARTICLE I

RECOGNITION

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.

ARTICLE II

UNION MEMBERSHIP AND DUES DEDUCTION

Section 1. All employees covered by this Agreement shall be or become members of the Union on or after the thirtieth (30th) calendar day following the date of this Agreement or the date of their employment, whichever is later, in accordance with Article VII, “Seniority,” Section “1,” and all such employees shall thereafter maintain their Union membership in good standing with respect to Union membership dues and initiation fees for the duration of this Agreement as a condition of their continued employment. Employees whose probationary period ends after the fifteenth (15th) day of the month will be enrolled in the Union the following month.

Section 2. (a) The Employer agrees to deduct from the wages earned during the second (2nd) or third (3rd) week of each month or from the last wages of an employee leaving the employ of the Company, monthly Union dues for each employee who has given the Company proper written authorization to make a deduction.

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(b) The Employer agrees to deduct the Union initiation fee from the wages of any employee who becomes a member of the Union provided written authorization to do so is given by the employee to the Company.

Section 3. All monies deducted by the Employer shall be paid to the Union on or before the fifteenth (15th) day of the month following that for which deductions are made.

Section 4. In the event there is a dispute between the Company and the Union or any member thereof with respect to dues deduction, such dispute shall be resolved in accordance with the “Grievance Procedure” herein set forth.

Section 5. The Union shall indemnify and save the Company harmless against any and all claims, demands, suits, or other forms of liability that shall arise out of or by reason of action taken or not taken by the Company for the purpose of complying with any of the provisions of this article.

ARTICLE III

HOURS OF WORK

Section 1. Eight (8) hours per day, five (5) days per week, and forty (40) hours per week shall normally constitute the work week. However, this may be increased or decreased by the Company, as herein set forth after discussion with the Union representatives, when in the Company’s opinion, it is necessary to do so in order to maintain an efficient operation.

Section 2. (a) The number of shifts and the starting time and the hours of work per day or per week in each shift shall be fixed from time to time solely by the Employer after discussion with the Union with respect thereto, and hours per day or per week so fixed shall be considered as the normal hours of work per day or per week. However, no reduction of the work week by more than one (1) hour per day or, in the alternative, to less than four (4) days per week, shall be made without the mutual consent of the Company and the Union. Furthermore, there shall be no reduction of the work week until all part-time employees have been laid off and while there are employees with less than eighteen (18) months seniority working in the plant, unless agreed to by the Company and the Union.

(b) However, not withstanding, the above provisions of Section 2 (a), a temporary reduction of the work week may be made by the Company when, in its opinion, it is necessary to do so because of special or unusual circumstances, such as inventory periods or layoffs of less than one week.

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Section 3. The Employer shall have the right to employ part-time employees and the hours per day or per week at which the part-time employee is employed shall be considered as the normal hours of work per day or per week of the said employee.

4. For the purpose of computing the pay of employees, the work week shall begin at the starting time of the shift which starts immediately prior to or following midnight Sunday, and shall end at the same time before or after midnight of the following Sunday.

Section 5. Employees shall receive three (3) minutes wash-up time before lunch and three (3) minutes wash-up time before quitting time. Those jobs where actual wash-up exceeds said amount, such employees shall receive additional wash-up time as agreed upon between the Employer and the Union.

Section 6. The Employer agrees that overtime work will be distributed fairly and as equally as possible among the permanent employees within the respective classifications and departments provided the individual employee has the necessary qualifications and the ability to perform the required overtime work, irrespective of the shift in which such individual employees work. With respect to “grievances” under this paragraph, in the event of proven unfair assignment, the redress shall be limited to the granting of opportunity for the next available overtime assignment for which the employee is qualified.

Section 7. (a) In the event that an employee reports for work on their regular shift without having been previously notified not to report to work, they shall be given a minimum of four (4) hours work; or, if no work is available, they shall be given four (4) hours pay, except where such notification is not given by reason of circumstances wholly beyond the control of the Employer.

(b) In the event that the plant will be closed because of reasons beyond the control of the Company, the Employer agrees, wherever possible, to notify the employees of such closing approximately two (2) hours before the beginning of the shift or shifts affected through the use of local telephone answering service which the employee must call. Such notification shall be deemed compliance with the requirement of notification set forth in Section (7) (a) above and the Company shall have no liability to provide any hours of work or pay as heretofore provided in this section.

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(c) The Company shall have no liability to provide any guaranteed work or pay as heretofore required in Section 7 (a) in the event the lack of work is caused by fire, flood, power or boiler failure, labor dispute, acts of God, or circumstances beyond the control of the Employer.

Section 8. The Employer shall have the option of scheduling four 10-hour days without any daily overtime during the summer period from July 4th to Labor Day and at the same time close on Friday during said summer period provided the Employer gives at least thirty (30) day’s notice prior to July 4th of any year to the Union of its intention to exercise this option. If the Employer exercises this option, the rest periods on the 10-hour days will be scheduled the way they have been scheduled in the past on 10-hour days.

Section 9. A morning rest period of fifteen (15) minutes and a daily unpaid lunch period of thirty-five (35) minutes will be scheduled by the Employer. These time limitations will be strictly adhered to by the employees and failure to adhere to the same will result in disciplinary action.

ARTICLE IV

RATE OF PAY

Section 1. (a) On or before March 31, 2004 the Employer will pay all employees covered by this agreement a lump sum payment of four hundred ($400.00) dollars less governmental deductions.

(b) On or before June 11, 2004 the Employer will pay all employees covered by this agreement a lump sum payment of four hundred ($400.00) dollars less governmental deductions.

(c) On or before December 10, 2004 the Employer will pay all employees covered by this agreement a lump sum payment of five hundred ($500.00) dollars less governmental deductions.

(d) On or before June 10, 2005 the Employer will pay all employees covered by this agreement a lump sum payment of five hundred ($500.00) dollars less governmental deductions.

(e) On or before December 9, 2005 the Employer will pay all employees covered by this agreement a lump sum payment of five hundred ($500.00) dollars less governmental deductions.

(f) On or before June 9, 2006 the Employer will pay all employees covered by this agreement a lump sum payment of five hundred ($500.00) dollars less governmental deductions.

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Section 2. (a) All occupations are classified into seven (7) labor grades, the rates of these classifications will remain in effect as listed on Schedule I, annexed hereto.

(b) New employees shall be hired at not less than the minimum rates specified in Schedule I for their respective labor grade and will receive an automatic increase every four (4) months until they reach the maximum of the labor grade as shown in Schedule I.

(c) An employee to be eligible for an increase must have worked at least seventy (75%) percent of the scheduled working days for the six (6) month period immediately preceding the date of the automatic increase. In the event the employee does not meet this requirement due to a leave of absence or layoff, the due date of the automatic increase will be advanced by the total number of scheduled work days absent.

(d) For the purpose of arriving at the date on which the first automatic increase is due, an employee hired during the first three (3) days of the work week shall be considered to have been hired on the first day of the work week; and an employee hired during the last two (2) days of the work week shall be considered to have been hired on the first day of the following week. For the purpose of arriving at the date of subsequent automatic increases, the last automatic or merit increase granted will be used to determine the date of eligibility and according to the day of the week on which this falls, the guide outlined in the previous sentence will be used.

(e) The Union will be furnished with the job title and labor grade of all Union employees. Any question regarding an individual’s job title will be resolved between the individual and the xxxxxxx. If it is not resolved on this level, it will then follow the Grievance Procedure.

(f) An employee assigned to perform more than one job will be in the higher classification provided they are required to spend at least forty (40%) percent of their time in such classification.

(g) An employee who is given a new job shall be given instruction and training on any higher classification, and while receiving such training in the higher classification shall be given the going rate for that classification. Senior person to be given first choice in any promotion provided they are qualified to do the job.

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(h) When a new job is created, the Union will be immediately informed regarding the job title and starting rate.

(i) In the event the content of the job changes over a period of time and the hiring rate is changed, the change shall become effective on the date the Company and the Union agree the job content has been changed sufficiently to warrant a change in rate.

(j) No changes shall be made in the minimum or maximum hiring rate of the labor grades during the term of this Agreement. This does not limit nor prohibit the Company from hiring individual employees at a higher rate than the minimum, if, in the Company’s opinion, it feels it is necessary in order to secure qualified personnel.

(k) The Union agrees not to interfere with the work assignment of any employees but will seek redress through proper channels.

Section 3. (a) An employee who works on the second shift shall receive a ten (10%) percent night shift premium on the base rate for working this shift.

(b) An employee who works on the third shift shall receive a fifteen (15%) percent night shift premium on the base rate for working this shift.

Section 4. Any work performed in excess of eight (8) hours per day shall constitute overtime and shall be paid for at time and one-half the regular straight time rate unless stated otherwise in this agreement. Work performed by the second shift shall be construed as being worked in the day in which the immediately preceding first shift worked even though the hours of the later shift run into the calendar Saturdays, Sundays, or holidays. Work performed on Saturday shall be paid for at time and one-half the regular straight time rate. Work performed on Sunday and/or legal holidays enumerated herein shall be paid for at double the regular straight time rates.

Section 5. Should the Employer move the factory outside the Elmwood Park area, where transportation creates a hardship upon the employees, any employee deciding to terminate his employment after the Employer had given formal notice of its intention to move, would receive as severance whatever vacation pay he had accumulated on a pro-rated basis.

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ARTICLE V

HOLIDAY PAY

Section 1. The following shall be deemed legal holidays:

New Year’s Eve		Labor Day
New Year’s Day		Thanksgiving Day
Washington’s Birthday		Friday after Thanksgiving
Memorial Day		Christmas Eve
Fourth of July		Christmas Day

Section 2. (a) Union members shall be paid for the above holidays on which no work shall have been performed at their regular straight time hourly rates, for their normal work day or fraction thereof, where indicated, provided, however, that the employee is on the payroll and actually worked the full working day preceding and the first full working day following such holiday. Employees who are absent may qualify for such pay upon presentation of valid reason for absence from work, such as a doctor’s note for illness. Determination of qualification shall be at the Employer’s discretion.

(b) Union members to be notified in advance of a close-down by the Company two (2) days before a said holiday.

Section 3. Union members who are on leave of absence or on layoff on any of the aforementioned holidays are not entitled to receive pay for said holiday, except that an employee who is laid off due to lack of work or is recalled from layoff shall be entitled to receive pay for any of the aforementioned holidays which fall within the week during which the employee is laid off or recalled.

Section 4. Employees will be entitled to two (2) floating holidays. After six (6) months continuous employment employees will be entitled to an additional floating holiday. Employees with two (2) years of service as of their anniversary date of hire will be entitled to an additional floating holiday. Floating holidays may be taken at the individual employee’s option on three (3) days notice to the Company except in case of an emergency. The Employer may deny an employee request to take a specific day off if too many employees request the same day off and production would be affected in which case requests for the day off will be granted by seniority up to the maximum number of employees the Company may excuse. Floating holidays may be used for sickness without prior notice. Employees entitled to floating holidays shall be granted these holidays as of 5 December for each year of the contract. The floating holidays available for each eligible employee in the one (1) year period beginning 5 December will be granted in accordance with Article V, Section 4. Any unused floating holidays for the one (1) year period starting 5 December and ending 4 December of the following year will be paid by the Company by 31 December of the same year as the 4 December date.

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ARTICLE VI

VACATION PAY

Section 1. (a) Vacation pay shall be computed at two (2%) percent of the employee’s earnings for the fiscal year ending at July 1st, provided, however, that he shall have worked for at least three (3) months during the aforesaid year. In the event that an employee shall have worked at least forty-three (43) weeks in the year, the minimum vacation pay shall be forty (40) hours at his base rate.

(b) In addition, an employee who was hired three (3) years prior to June 30th, of the vacation year, will receive an additional amount equal to the amount computed in paragraph (a) above, but not less than forty (40) hours pay at his base rate in effect at July 1st.

(c) An employee hired five (5) years or more prior to June 30th of the vacation year will receive a third week’s vacation pay computed as in paragraph (a) above.

(d) An employee hired fifteen (15) years or more prior to June 30th of the vacation year will receive a fourth week’s vacation pay computed as in paragraph (a) above.

(e) An employee terminated for just cause within six (6) months of a vacation year will not be paid any vacation (see Article XI, Section 4).

Section 2. Employees who have been continuously employed by the Company for three (3) months or more and who are on layoff as of July 1st of any calendar year, shall receive a pro-rata vacation pay based upon the time actually worked in the fiscal year ending July 1st, which payment shall be made to the employees at the normal vacation time.

Section 3. Vacation shall be scheduled at the convenience of the Employer some time during June, July or August. Vacation pay shall be distributed in advance. Employees entitled to three (3) or four (4) weeks vacation pay may take their third and/or fourth week of vacation at any time during the calendar year provided, however, such scheduling shall be done at the discretion of management in order not to interfere with the efficient operation of the plant. If two (2) employees select the same vacation time and if management is willing to permit only one

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(1) employee to take vacation at that time, seniority shall prevail. Vacation shut-down dates will be posted on the bulletin board by June 15th of each year.

ARTICLE VII

SENIORITY

Section 1. (a) An employee hired on or after the date of this Agreement shall be a probationary employee until they have been employed for ninety (90) calendar days. During their probationary period they shall be entitled to no seniority and the discharge of a probationary employee during such period shall not constitute a cause for grievance. Not more than five (5) working days absence for any reason shall be credited for the purpose of computing the probationary period while absent. At the end of their probationary period, or on any rehiring, the date of their most recent hiring shall become their seniority date. For purposes of seniority, this paragraph shall apply to an employee who quits or is discharged or otherwise loses their seniority and is subsequently rehired. Employees successfully completing their probationary period will be required to pay Union dues for the last thirty (30) days of their probationary period.

(b) The Employer shall have the right to extend the probationary period of any employee for thirty (30) calendar days with the agreement of the Union Chairperson.

Section 2. (a) Employees working less than eight (8) hours per day, forty (40) hours per week, regardless of their seniority, will be the first to be laid off when reduction of force occurs.

(b) In case of layoff, seniority shall be on a plantwide basis, irrespective of shift, with the exception of part-time workers, provided only that the employees retained shall have the skill and ability to do work to the satisfaction of the Company.

(c) No new employees shall be hired for any job until a laid-off person having the ability to perform the work has been offered the opportunity.

(d) No new employees shall be hired in any department unless all employees entitled to seniority hereunder are working a full forty (40) hour week.

Section 3. Seniority rights shall be broken when an employee:

(a) Quits voluntarily,

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(b) is discharged,

(c) after a layoff, fails to report to work within three (3) days after the mailing of the notice to return to work to last address furnished by the employee,

(d) fails to return to work after a leave of absence is up,

(e) is laid off for a period of nine (9) months or more.

Section 4. (a) The number of Union representatives, in addition to the Union Chairperson, shall not exceed three (3%) percent of the Union employees on the payroll.

(b) The Shop Chairperson shall have top seniority in the plant provided he/she is qualified to perform available work.

(c) The Union Xxxxxxx shall have top seniority in the section in which the Xxxxxxx is employed provided he/she is qualified to perform available work..

(d) There shall be at least one (1) Union Xxxxxxx in the plant at all times when eight (8) or more Union workers are working, excluding the Maintenance Department provided he/she is qualified to perform available work.

ARTICLE VIII

LAYOFFS

Section 1. The Employer agrees to notify the Shop Chairperson twenty-four (24) hours in advance when a layoff for a period of more than one (1) week is contemplated by the Employer; failing which the employee concerned shall be given one (1) day’s pay at his straight time hourly rate. Twenty-four (24) hour’s notice will not be required in the case of fire, flood, emergency, Act of God or circumstances beyond the Employer’s control.

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Section 2. It is expressly understood and agreed that the Employer has the right in its discretion to lay off any employee or number of employees when business conditions make such layoff necessary, subject to provisions in this Agreement. In the operation of seniority, it is agreed that the Employer will apply seniority rights with respect to layoffs and rehiring within the plant as provided in the immediately preceding article. The Employer shall have no obligation to permit an employee to bump into a job where the employee does not have the qualifications to perform said job, subject to an employee’s right to grieve on the issue of his qualifications. In the event of a layoff there can be only one (1) “bump.” The employee bumped will be the least senior employee in the classification in which the bump occurs and said employee being bumped will himself have no bumping rights.

Section 3. Seniority as to recall will operate in the same manner as layoff.

Section 4. The Shop Chairperson shall be notified on all recalls.

Section 5. An employee who is recalled after a layoff and accepts a job in a lower classification will automatically be transferred back with the same rate of pay in his own classification whenever his job becomes available.

Section 6. The Employer will provide the Union with a seniority list on a quarterly basis (wage rates will not be set forth on the list.)

ARTICLE IX

TRANSFERS

Section 1. The Employer shall at all times have the right to transfer any employee from one department to another department and an employee so transferred shall carry his accumulated seniority with him into the department to which he has been transferred and no employee’s seniority rights shall be reduced because of any such transfer and no discharge shall result solely because of such transfer.

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Section 2. The moving of employees within a classification in a department shall not be considered a transfer and will be made whenever necessary for the efficient operation of the department. Any employee who refuses to accept an assignment to another job in the same classification in a department offered to them shall be deemed to have quit.

Section 3. It is agreed that due to special conditions prevailing in the shop in the closing down of/or disbanding of any department, the Employer may transfer an employee from a higher skilled department to a lower skilled one at the rate prevailing in the department to which they are transferred. Such transfer, however, shall take place by agreement with the Union representative, and also by agreement with the employee or employees in question.

Section 4. It is agreed that such employee whose wages have been reduced because of a transfer shall have first preference to return to his original department from which he was transferred when there is sufficient work in such department.

Section 5. Union job openings will be posted on the bulletin board. Union employees who have the necessary qualifications will be interviewed and if found acceptable, will be given the job on a thirty (30) day trial basis.

ARTICLE X

LEAVE OF ABSENCE

Section 1. There shall be no loss of seniority as a result of an approved leave of absence. The following will govern the granting of leaves of absence:

(a) Leave of absence will be granted without pay.

(b) Maximum leave of absence will be six (6) weeks.

(c) In order to qualify for a leave of absence, an employee must have had one (1) year of service with the Company.

(d) At least one (1) year must elapse between successive leaves of absence, except if the leave is due to medical reasons.

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(e) An employee who fails to return to work after the stipulated time of his leave of absence shall be subject to discharge.

(f) An employee who is ill or injured and presents satisfactory proof of such illness or injury to the Employer will be granted a leave of absence as provided in the terms set forth in the preceding paragraphs for a period not to exceed sixty (60) days. Such leave of absence may be extended by the Employer for additional periods of time not to exceed sixty (60) days in any instance, if at the expiration of such leave or extension thereof, the employee continues to be unable to return to work but under normal circumstances should be able to do so within a reasonable period, and provided further that he notifies the Employer in writing by registered mail to that effect at least five (5) calendar days prior to expiration of such leave of absence.

(g) An employee who sustains a compensable injury or who acquired an occupational disease which originates in the Employer’s plant will be granted a leave of absence automatically for the full period of legal temporary disability.

(h) An employee who engages in gainful employment during a leave of absence, except when such leave is expressly granted for such purpose, shall be deemed to have quit.

(i) An employee shall be subject to immediate dismissal for falsifying any reason given to the Company for leave of absence.

(j) Anything herein to the contrary notwithstanding, employees will be entitled to the benefits of the Sate of New Jersey Family Leave Act or the Federal Family and Medical Leave Act, whichever Act provides the greater benefit.

Section 2. The Employer agrees that in the event an employee is elected to full time office in the Union, such employee shall be granted a leave of absence for the duration of their term of office and shall be reinstated without loss of seniority upon the expiration of their term of office.

Section 3. In the event that any regular employee shall enter into or be drafted into the armed forces of the United States, it is agreed that they shall be granted a leave of absence for the duration of their service, and it is further agreed that such employee shall, at the conclusion of the period of service, provided they are physically equipped to perform their duties, and provided that they apply within sixty (60) days after their

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discharge, be re-employed without loss of seniority or other rights and be reinstated to their former position or one equivalent to it as a regular employee at the then prevailing rate of wages for such position. It is further understood and agreed that any new employee who is engaged to take the place of an employee who entered the armed forces of the United States may be discharged upon the rehiring of the former employee.

Section 4. (a) In the event of the death of an employee’s husband, wife, parent, brother, sister, or child, they will be granted a maximum of a three (3) day leave of absence starting from time of death, with pay at their normal straight time earnings, for any regularly scheduled work days lost, to take care of the funeral arrangements and attend the funeral of the deceased, upon delivery of proof satisfactory to the Company of such death, provided they shall have had at least one (1) year’s service with the Company.

(b) In the event of the death of an employee’s grandparent, mother-in-law, father-in-law, brother-in-law, sister-in-law, stepmother, stepfather, stepchild, stepbrother, stepsister, they will be granted a one (1) day leave of absence with pay at their normal straight time earnings for actual time lost for a scheduled work day, to attend the funeral upon delivery of proof satisfactory to the Company of such death, provided they shall have had at least one (1) year’s service with the Company.

(c) Employees on vacation, leave of absence, or on layoff, will not be paid for the above sections 4(a) or 4(b).

Section 5. (a) In the event an employee is summoned for jury duty, they will be granted a two (2) week leave of absence and will be paid, up to a maximum of two (2) weeks, the difference between jury pay and their regular straight time pay for their normal work week, provided they have had at least one (1) year’s service with the Company.

(b) Employees on vacation, leave of absence, or on layoff, will not be paid for the above section 5(a).

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ARTICLE XI

DISCHARGE

Section 1. Any employee absent from work for three (3) consecutive working days without notification of such absence to the Personnel Department will automatically be removed from the payroll of the Employer and lose all seniority rights. An employee must have a satisfactory reason for any day of absence.

Section 2. Any employee requesting relief from a work assignment, due to physical conditions, must upon the Employer’s request, submit to a physical examination by a physician. If, on the basis of the doctor’s report, the Company determines that the employee is physically able to perform the work assignment, the employee will be so informed. Refusal to perform the work assigned will result in the automatic termination of the employee.

Section 3. Excessive absenteeism or lateness will result in dismissal, after at least one (1) warning slip has been issued to the employee, and notice been given to the Union Chairperson.

Section 4. The Employer reserves the right to discharge an employee for any just cause or reason. Included in the right to discharge, but not limited to the foregoing authority, the parties agree that inefficiency, loitering after warning, drinking, gambling or bookmaking on the Company premises, or crimes committed off the Company premises shall be cause for discharge under this provision. It is understood that in the event a person is accused of a crime committed off Company premises, the party will be suspended without pay or benefits until the disposition of the criminal proceedings when the final disciplinary action will be determined, provided, however, that if the Union claims that the discharge was unjust or not for reasonable cause, the matter shall be submitted for arbitration in the manner provided for in this Agreement.

ARTICLE XII

DEPARTMENTAL SUPERVISORS

Section 1. The Employer reserves the right to have Assistant Foremen perform whatever type work it deems necessary for the efficient operation of the department.

Section 2. An employee upgraded to a position, Assistant Xxxxxxx or Xxxxxxx, outside the bargaining unit, and for any reason returned to a position within the bargaining unit within a period of one (1) year from the date they were upgraded, shall be reinstated in the Union with full seniority rights from their original date of hire.

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ARTICLE XIII

HOSPITALIZATION AND INSURANCE

Section 1. (a) The Employer agrees to provide, at its expense, (as specified in Section 1(b) ), a benefit plan (Local 377 Group Health Plan) for each employee, provided said employee meets the eligibility requirements as specified in the subject plan.

(b) The Employer agrees to pay $260.00 per month beginning 5 December 2004 for each employee for the entire term of this Agreement, i.e., three (3) years, December 5, 2004 to December 4, 2006.

Section 2. The Employer agrees to provide, at its expense, a group life insurance plan providing a Three Thousand Dollar ($3,000.00) coverage for each employee, provided said employee shall have six (6) months service with the Company.

ARTICLE XIV

GRIEVANCE PROCEDURE

Any dispute, difference, or grievance which may arise concerning any of the provisions, terms or interpretations of this Agreement shall be submitted within two (2) working days of its occurrence by the Union or employee affected to the Company for settlement between the Union Xxxxxxx and the Xxxxxxx, or be forever barred. If no agreement is reached within two (2) additional working days, it shall be referred to the Union representatives and the representative of Management. If the Union is not satisfied with the answer given by the Company, it must serve written notice to appeal within ten (10) working days. If timely notice of appeal to arbitration is not given, the matter is closed and the Company’s answer is final. If timely notice of appeal to arbitration is served, the parties shall endeavor to select an arbitrator mutually satisfactory to them. In the event the parties cannot agree on a mutually satisfactory arbitrator within five (5) working days, either party may request the New Jersey State Board of mediation to submit a panel of arbitrators in accordance with its rules and practices. The arbitrator shall then be selected in accordance with the rules and regulations of the New Jersey State Board of Mediation and the issue in dispute shall be submitted to him for final determination.

The arbitrator may provide for reinstatement of any discharged employee, either with or without pay as the arbitrator may determine, or may sustain a discharge, or may otherwise

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determine any other question referred to him. In the event of any back pay award, there shall be deducted from the same any employee earnings elsewhere, as determined in accordance with National Labor Relations Board standards.

The arbitrator shall not have the authority to alter, modify, add to or subtract from, any of the terms or provisions of the Agreement.

The fee of the arbitrator shall be shared equally by the Company and the Union. All other expenses of the arbitration shall be paid by the party incurring the same.

No individual employee or employees shall have the right to request arbitration under this Agreement.

In the event there were two (2) Stewards or one (1) Xxxxxxx and one (1) Chairperson in the same department, only one (1) will be released at any one time to process grievances.

ARTICLE XV

INTERFERENCE, DISCRIMINATION, COERCION

This contract is the full agreement and the Employer shall not enter into any private agreement with any of its employees whereby any of the provisions of this Agreement may or shall be violated, waived or modified. Any and all such agreements shall be null and void and of no effect.

ARTICLE XVI

NO STRIKES, LOCKOUTS

During the term of this Agreement, the Employer shall not lock out and the Union agrees that neither it nor any of its representatives, stewards, covered employees or members will sanction, authorize or engage in any strike, slowdown, stoppage or interference with work; but should such unauthorized suspension or stoppage or interference with work take place, the Union and its agents shall make every effort to restore and resume normal operations forthwith. The Employer agrees that it will not xxx or claim money damages from the Union by reason of any unsanctioned or unauthorized strike or suspension of work, provided the Union has reasonably endeavored to have work resumed.

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ARTICLE XVII

MISCELLANEOUS

Section 1. Any provisions of this Agreement which are in conflict with any law, executive or governmental, city or state regulations, order or directive, now or hereafter in existence, shall be suspended as long as such conflict exists.

Section 2. No payroll deduction shall be made for any purpose whatsoever except as specifically required by federal, state and/or municipal law, or as hereinabove specified, or unless authorized in writing by the employee in question and agreed to by the Employer. Nothing herein contained, however, shall be construed to prevent reasonable regulations for deductions in case an employee is late in reporting for work.

Section 3. Unless an employee is hospitalized, employees absent from work must call in by 8:30 A.M. on a daily basis or they will be subject to the progressive discipline set forth in Article XI, Section 3.

Section 4. The Employer will provide two (2) First Aid Kits for the production area of the plant, one to be placed at each end of the production area.

Section 5. Employees will be required to sign and agree to the attached Confidentiality Agreement, Schedule II.

ARTICLE XVIII

SECURITY

Section 1. In the event that a government agency concerned with security regulations applicable to the Employer advises the Employer to restrict any member of the Union from work on or access to classified information or material, the Union will not hold the Employer responsible for such action as the Employer may reasonably take to comply with its contractual obligations to the customer working on contracts for the government.

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Section 2. The Union recognizes that the Employer has certain obligations under the law pertaining to security and in its contracts with vendors doing government work as required by the security regulations of the armed forces, and agrees that nothing contained in this Agreement is intended to place the Employer in violation of such law pertaining to security or its security agreements with the government.

ARTICLE XIX

INSPECTION & SEARCH

The Employer reserves the right to open and inspect any package, case, handbag or article being brought into or taken out of the plant. In addition, the Employer retains the right to inspect any employee’s locker or desk or any other Employer receptacle the employee uses or has access to. Refusal of an employee to consent to such an inspection or search when requested by the Employer, constitutes insubordination and will result in discipline up to and including discharge. The Employer may not abuse its rights under this section. Any inspection and/or search shall be performed in the presence of a Shop Xxxxxxx.

ARTICLE XX

SEXUAL HARASSMENT

The Employer and Union agree to work together to maintain a working environment free from all forms of sexual harassment. Employees may not engage in sexual harassment. Sexual harassment is defined as unwelcome sexual advances, requests for sexual favors or other verbal or physical conduct of a sexual nature when submission to or rejection of such conduct is used either explicitly or implicitly as a factor in employment decisions or when such conduct substantially interferes with an employee’s work performance or creates an intimidating, hostile or offensive work environment. Any employee who feels victimized by sexual harassment should report the alleged harassment immediately to his/her supervisor or the Director of Human Resources. The Employer will conduct a prompt and thorough investigation of the charges and will appropriately discipline any employee who engages in sexual harassment. The discipline may include discharge.

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ARTICLE XXI

CONTROLLED SUBSTANCES

The Company may require that all new employees take and pass a physical exam, including controlled substance test (drug and/or alcohol), as a condition of starting work. After hire, the Company may require that its employees take a drug/alcohol test where there is probable cause to believe the employee’s performance may be affected by drug or substance use. If an employee tests positive and admits to a dependency, the Company will work with the employee and if necessary place the employee on a leave of absence on condition he enroll in an appropriate detoxification program to attempt to overcome the dependency. If an employee cannot overcome the dependency or if the employee overcomes the dependency and at a later date reverts to the use of a controlled substance (drugs and/or alcohol), he will be terminated. If the employee does not admit to a drug or substance dependency but has tested positive, he will be subject to discipline. Any employee who is asked to take a controlled substance test (drugs and/or alcohol) based on probable cause to believe the employee’s performance is affected by a drug or substance use, and who refuses such test, may be terminated.

ARTICLE XXII

TERM OF AGREEMENT

THIS AGREEMENT shall remain in full force and effect and shall be binding upon the parties and successors until midnight, 4 December 2006, and shall be considered automatically renewed from year to year thereafter unless at least sixty (60) days prior to the end of any effective period either party shall serve written notice upon the other by registered mail that it desires to modify or terminate this Agreement.

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IN WITNESS WHEREOF, the parties hereto set their hands and seals the day and year first above written.

KREISLER INDUSTRIAL CORPORATION		LOCAL 377, RWDSU, AFL-CIO
/s/ Xxxxxx X. Xxxxx		/s/ Xxxxxx Xxxxx
		Secretary/Treasurer
		Recording Secretary
		COMMITTEE:
		/s/ Xxxxx Xxxxx
		/s/ Xxxxxx Xxxxxx
		/s/ Xxxxx Xxxx
		/s/ Xxxxxx X. Xxxxx

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EFFECTIVE 5 DECEMBER 2003

SCHEDULE I

LABOR GRADE “B”

Minimum $5.15 per hour with an increase of $.05 per hour after thirty (30) days and automatic increases of $.10 per hour every four (4) months until reaching maximum rate of $13.90 per hour.

The following jobs are in “B” Classification:

General Machine Operator - (including chamfering, swedging, drill press, tube cutter)

Solder Remover

Pressure & Flow Tester

Induction Brazer

Identification

Moveman

Shipping/Receiving Clerk

Xxxxxx

Furnace Assembler

Cap and Wrap

LABOR GRADE “C”

Minimum $5.25 per hour with an increase of $.05 per hour after thirty (30) days and automatic increases of $.10 per hour every four (4) months until reaching maximum rate of $14.00 per hour.

The following jobs are in “C” Classification:

Chemical Cleaner

DeBurrer

Tube Xxxxxx

Final Assembly Inspector

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LABOR GRADE “D”

Minimum $5.40 per hour with an increase of $.05 per hour after thirty (30) days and automatic increases of $.10 per hour every four (4) months until reaching maximum rate of $14.15 per hour.

The following jobs are in “D” Classification:

Adjustor

Torch Brazer

Fluorescent Penetrant Operate & Set-up

Plater

LABOR GRADE “E”

Minimum $5.65 per hour with an increase of $.05 per hour after thirty (30) days and automatic increases of $.10 per hour every four (4) months until reaching maximum rate of $14.40 per hour.

The following jobs are in “E” Classification:

Machinist - 2nd Class

Vendor’s Inspector

Leadman

Truck Driver

X-Ray Technician

Process Inspector

Ultrasonic Technician

LABOR GRADE “F”

Minimum $5.90 per hour with an increase of $.05 per hour after thirty (30) days and automatic increases of $.10 per hour every four (4) months until reaching maximum rate of $14.90 per hour.

The following jobs are in “F” Classification:

Furnace Operator

General Maintenance Man

X-Ray Reader

Set-Up Man

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LABOR GRADE “G”

Minimum $6.15 per hour with an increase of $.05 per hour after thirty (30) days and automatic increases of $.10 per hour every four (4) months until reaching maximum rate of $15.15 per hour.

The following jobs are in “G” Classification:

CNC Machine Set-Up

Machinist 1st Class

Experimental Machinist

Turret Lathe Set-Up and Operator

LABOR GRADE “H”

Minimum $6.40 per hour with an increase of $.05 per hour after thirty (30) days and automatic increases of $.10 per hour every four (4) months until reaching maximum rate of $15.65 per hour.

The following jobs are in “H” Classification:

Tool and Die Maker

Toolmaker

Layout Inspector

Welder

LEADMAN: In the event the Company establishes a Leadman in any classification in any labor grade, it is agreed the rate of the Leadman should be ten (10%) percent above their then current hourly rate, said payment to commence upon the completion of a thirty (30) day trial period in the Leadman classification.

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SCHEDULE II

CONFIDENTIALITY AGREEMENT

This Agreement made this      day of                     , 20    , between                                          (“Employee”) residing at                                                   and                                          (“Employer”) having a principal place of business at                                                  .

IN CONSIDERATION of the Employee’s employment and/or continued employment with Employer, together with all benefits accruing from such employment and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Employee and Employer agree as follows:

1. CONFIDENTIALITY.

1.1 By virtue of employee’s employment with Employer, Employee has been and will be exposed to trade secret, proprietary and/or confidential information (collectively, the “Confidential Information”) pertaining to orders, bids, manufacturing specifications used or to be used by Employer on its own behalf or on behalf of customers, suppliers and other third parties, including without limitation, financial arrangements, fees, manufacturing techniques, equipment specifications and other information concerning Employer’s and other third party businesses.

1.2 Employee recognizes that any unauthorized disclosure of such Confidential Information, or use of Confidential Information for Employee’s own purposes or for the benefit of any person or entity (except Employer) would be extremely harmful and detrimental to Employer. Therefore, Employee shall not, divulge, or communicate, directly or indirectly, any Confidential Information to any person or entity for any reason or purpose whatsoever, nor make use of any such Confidential Information for Employee’s own purposes or for the benefit of any person or entity (except Employer) under any circumstances without the prior written consent of Employer, which consent may be withheld for any reason or for no reason.

1.3 At all times all Confidential Information and other materials of Employer shall remain the property of Employer. All designs, specifications, drawings and other notes and written information maintained by Employee in connection with Employee’s employment shall remain the property of Employer. On termination of Employee’s employment with Employer, for any reason whatsoever, Employee shall return to Employer all Confidential Information, other Employer owned materials and all copies of such materials made or retained by Employee.

2. GOVERNING LAW.

This Agreement shall be governed by and construed in accordance with the laws of the State of New Jersey.

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first above written.

Employee

By Employer:

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