----

----

|   | [X]      QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES      EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED July 3,      2010 |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | [  ]      TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES      EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD      FROM                          to |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Connecticut                          | 06-0330020               |
|--------------------------------------|--------------------------|
| (State      or other jurisdiction of | (I.R.S.      Employer    |
| incorporation      or organization)  | Identification      No.) |

| 112      Bridge Street, Naugatuck, Connecticut | 06770           |
|------------------------------------------------|-----------------|
| (Address      of principal executive offices)  | (Zip      Code) |

| Large      accelerated filer [  ]                                                  | Accelerated      filer [X]                    |
|----------------------------------------------------------------------------------------------|-----------------------------------------------|
| Non-accelerated      filer [  ]      (Do not check if a smaller reporting company) | Smaller      reporting company [  ] |

| Class                           | Outstanding      as of July 3, 2010 |
|---------------------------------|-------------------------------------|
| Common      Stock, No par value | 6,124,853                           |

----

----

----

| ASSETS                                                                               |   | July      3, 2010 |        | January      2, 2010 |   |
|--------------------------------------------------------------------------------------|--------|-------------------|-------------|----------------------|--------|
| Current      Assets                                                                  |   |              |        |                 |   |   |   |
| Cash      and cash equivalents                                                       |   | $                 | 12,269,452  |                 | $      | 16,746,673 |   |
| Accounts      receivable, less allowances: $428,000 - 2010; $392,000 -    2009       |   |              | 16,572,311  |                 |   | 15,326,416 |   |
| Inventories                                                                          |   |              | 26,425,608  |                 |   | 24,520,289 |   |
| Prepaid      expenses and other assets                                               |   |              | 2,101,996   |                 |   | 2,037,745 |   |
| Deferred      income taxes                                                           |   |              | 1,129,898   |                 |   | 1,129,898 |   |
| Total      Current Assets                                                            |   |              | 58,499,265  |                 |   | 59,761,021 |   |
|                                                                                 |   |              |        |                 |   |   |   |
|                                                                                 |   |              |        |                 |   |   |   |
| Property,      Plant and Equipment                                                   |   |              | 52,078,153  |                 |   | 50,339,002 |   |
| Accumulated      depreciation                                                        |   |              | (28,838,950 | )                    |   | (27,365,369 | ) |
|                                                                                 |   |              | 23,239,203  |                 |   | 22,973,633 |   |
|                                                                                 |   |              |        |                 |   |   |   |
|                                                                                 |   |              |        |                 |   |   |   |
| Goodwill                                                                             |   |              | 13,852,596  |                 |   | 13,869,005 |   |
| Trademarks                                                                           |   |              | 150,751     |                 |   | 151,341 |   |
| Patents,      technology, and other intangibles net of accumulated      amortization |   |              | 2,506,830   |                 |   | 2,796,698 |   |
| Deferred      income taxes                                                           |   |              | 1,104,387   |                 |   | 1,283,323 |   |
| Prepaid      pension cost                                                            |   |              | 25,586      |                 |   | 36,838 |   |
|                                                                                 |   |              | 17,640,150  |                 |   | 18,137,205 |   |
| TOTAL      ASSETS                                                                    |   | $                 | 99,378,618  |                 | $      | 100,871,859 |   |

----

| LIABILITIES      AND SHAREHOLDERS’ EQUITY                                             |   | July      3, 2010 |        | January      2, 2010 |   |
|---------------------------------------------------------------------------------------------|--------|-------------------|-------------|----------------------|--------|
| Current      Liabilities                                                                    |   |              |        |                 |   |   |   |
| Accounts      payable                                                                       |   | $                 | 8,006,561   |                 | $      | 5,335,317 |   |
| Accrued      compensation                                                                   |   |              | 1,982,539   |                 |   | 1,811,236 |   |
| Other      accrued expenses                                                                 |   |              | 1,407,950   |                 |   | 1,191,360 |   |
| Current      portion of long-term debt                                                      |   |              | 714,286     |                 |   | 7,142,858 |   |
| Total      Current Liabilities                                                              |   |              | 12,111,336  |                 |   | 15,480,771 |   |
|                                                                                        |   |              |        |                 |   |   |   |
|                                                                                        |   |              |        |                 |   |   |   |
| Other      long-term liabilities                                                            |   |              | 1,042,650   |                 |   | 1,077,247 |   |
| Long-term      debt, less current portion                                                   |   |              | 3,928,571   |                 |   | 4,285,713 |   |
| Accrued      postretirement benefits                                                        |   |              | 1,345,705   |                 |   | 1,341,498 |   |
| Accrued      pension cost                                                                   |   |              | 12,462,890  |                 |   | 12,089,326 |   |
|                                                                                        |   |              |        |                 |   |   |   |
|                                                                                        |   |              |        |                 |   |   |   |
|                                                                                        |   |              |        |                 |   |   |   |
| Shareholders’      Equity                                                             |   |              |        |                 |   |   |   |
| Voting      Preferred Stock, no par value: Authorized and unissued 1,000,000      shares    |   |              |        |                 |   |   |   |
| Nonvoting      Preferred Stock, no par value: Authorized and unissued 1,000,000      shares |   |              |        |                 |   |   |   |
| Common      Stock, no par value: Authorized: 50,000,000 shares                              |   |              |        |                 |   |   |   |
| Issued:      8,819,582 shares in 2010 and 8,709,384 shares in 2009                          |   |              | 27,306,503  |                 |   | 26,236,477 |   |
| Treasury      Stock: 2,694,729 shares in 2010 and 2,644,215 shares in    2009               |   |              | (19,105,723 | )                    |   | (18,375,416 | ) |
| Retained      earnings                                                                      |   |              | 68,886,733  |                 |   | 67,558,201 |   |
|                                                                                        |   |              |        |                 |   |   |   |
| Accumulated      other comprehensive income (loss):                                         |   |              |        |                 |   |   |   |
| Foreign      currency translation                                                           |   |              | 1,590,247   |                 |   | 1,696,013 |   |
| Unrecognized      net pension and postretirement benefit costs, net of tax                  |   |              | (10,190,294 | )                    |   | (10,517,971 | ) |
|    Accumulated      other comprehensive loss                                 |   |              | (8,600,047  | )                    |   | (8,821,958 | ) |
| Total      Shareholders’ Equity                                                       |   |              | 68,487,466  |                 |   | 66,597,304 |   |
| TOTAL      LIABILITIES AND SHAREHOLDERS’ EQUITY                                       |   | $                 | 99,378,618  |                 | $      | 100,871,859 |   |

----

|                                     |   | Six      Months Ended |              | Three      Months Ended |   |
|------------------------------------------|--------|-----------------------|-------------------|-------------------------|--------|
|                                     |   |                  | July      3, 2010 |                    |   | July      4, 2009 |   |   | July      3, 2010 |   |   | July      4, 2009 |   |
| Net      sales                           |   | $                     | 63,532,220        |                    | $      | 56,520,102 |   | $ | 32,577,665 |   | $ | 28,087,629 |   |
| Cost      of products sold               |   |                  | (50,574,900       | )                       |   | (47,423,251 | ) |   | (25,679,320 | ) |   | (22,410,863 | ) |
| Gross      margin                        |   |                  | 12,957,320        |                    |   | 9,096,851 |   |   | 6,898,345 |   |   | 5,676,766 |   |
|                                     |   |                  |              |                    |   |   |   |   |   |   |   |   |   |
| Selling      and administrative expenses |   |                  | (9,055,896        | )                       |   | (8,491,950 | ) |   | (4,623,095 | ) |   | (4,103,087 | ) |
| Operating      profit                    |   |                  | 3,901,424         |                    |   | 604,901 |   |   | 2,275,250 |   |   | 1,573,679 |   |
|                                     |   |                  |              |                    |   |   |   |   |   |   |   |   |   |
| Interest      expense                    |   |                  | (138,069          | )                       |   | (447,181 | ) |   | (67,997 | ) |   | (219,867 | ) |
| Other      income                        |   |                  | 491               |                    |   | 39,686 |   |   | 397 |   |   | 14,077 |   |
| Income      before income taxes          |   |                  | 3,763,846         |                    |   | 197,406 |   |   | 2,207,650 |   |   | 1,367,889 |   |
|                                     |   |                  |              |                    |   |   |   |   |   |   |   |   |   |
| Income      taxes                        |   |                  | 1,343,317         |                    |   | 437,554 |   |   | 796,781 |   |   | 525,507 |   |
| Net      income/(loss)                   |   | $                     | 2,420,529         |                    | $      | (240,148 | ) | $ | 1,410,869 |   | $ | 842,382 |   |
|                                     |   |                  |              |                    |   |   |   |   |   |   |   |   |   |
| Earnings/(loss)      per Share:          |   |                  |              |                    |   |   |   |   |   |   |   |   |   |
| Basic                                    |   | $                     | .40               |                    | $      | (.04 | ) | $ | .23 |   | $ | .14 |   |
|                                     |   |                  |              |                    |   |   |   |   |   |   |   |   |   |
| Diluted                                  |   | $                     | .39               |                    | $      | (.04 | ) | $ | .23 |   | $ | .13 |   |
|                                     |   |                  |              |                    |   |   |   |   |   |   |   |   |   |
| Cash      dividends per share:           |   | $                     | .18               |                    | $      | .18 |   | $ | .09 |   | $ | .09 |   |

|                                                                                                                                                                               | Six      Months Ended |              | Three      Months Ended |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------|-------------------|-------------------------|--------|
|                                                                                                                                                                               |                  | July      3, 2010 |                    |   | July      4, 2009 |   |   | July      3, 2010 |   |   | July      4, 2009 |   |
| Net      income/(loss)                                                                                                                                                             | $                     | 2,420,529         |                    | $      | (240,148 | ) | $ | 1,410,869 |   | $ | 842,382 |   |
| Other      comprehensive income/(loss):                                                                                                                                            |                  |              |                    |   |   |   |   |   |   |   |   |   |
| Change      in foreign currency translation                                                                                                                                        |                  | (105,766          | )                       |   | 316,130 |   |   | (450,658 | ) |   | 486,493 |   |
| Change      in pension and postretirement benefit costs, net of taxes of:2010      – $178,936 and $89,468, respectively2009      – $239,717 and $122,496, respectively |                  | 327,677           |                    |   | 438,983 |   |   | 163,839 |   |   | 224,320 |   |
| Change      in fair value of derivative financial instruments, net of income taxes      of:2009      – $104,593 and $70,211, respectively                                    |                  | -                 |                    |   | 191,536 |   |   | - |   |   | 128,572 |   |
|                                                                                                                                                                               |                  | 221,911           |                    |   | 946,649 |   |   | (286,819 | ) |   | 839,385 |   |
| Comprehensive      income                                                                                                                                                          | $                     | 2,642,440         |                    | $      | 706,501 |   | $ | 1,124,050 |   | $ | 1,681,767 |   |

----

|                                                                                               |   | Six      Months Ended |        |
|----------------------------------------------------------------------------------------------------|--------|-----------------------|-------------|
|                                                                                               |   | July      3, 2010     |        | July      4, 2009 |   |
| Operating      Activities                                                                          |   |                  |        |   |   |   |   |
| Net      income/(loss)                                                                             |   | $                     | 2,420,529   |   | $ | (240,148 | ) |
| Adjustments      to reconcile net income/(loss) to net cash provided by operating      activities: |   |                  |        |   |   |   |   |
| Depreciation      and amortization                                                                 |   |                  | 1,981,307   |   |   | 2,070,696 |   |
| Provision      for doubtful accounts                                                               |   |                  | 54,449      |   |   | 67,888 |   |
| Loss      on sale of equipment and other assets                                                    |   |                  | -           |   |   | 482 |   |
| Issuance      of Common Stock for directors’ fees                                            |   |                  | 12,306      |   |   | 18,458 |   |
| Changes      in operating assets and liabilities:                                                  |   |                  |        |   |   |   |   |
| Accounts      receivable                                                                           |   |                  | (1,321,810  | ) |   | 1,549,901 |   |
| Inventories                                                                                        |   |                  | (1,918,552  | ) |   | 5,224,934 |   |
| Prepaid      expenses and other                                                                    |   |                  | (15,062     | ) |   | 848,963 |   |
| Prepaid      pension cost                                                                          |   |                  | 908,679     |   |   | 1,280,531 |   |
| Other      assets                                                                                  |   |                  | (117,843    | ) |   | (56,186 | ) |
| Accounts      payable                                                                              |   |                  | 2,690,396   |   |   | (2,091,707 | ) |
| Accrued      compensation                                                                          |   |                  | 174,675     |   |   | (510,457 | ) |
| Other      accrued expenses                                                                        |   |                  | 153,484     |   |   | 1,030,621 |   |
| Net      cash provided by operating activities                                                     |   |                  | 5,022,558   |   |   | 9,193,976 |   |
|                                                                                               |   |                  |        |   |   |   |   |
| Investing      Activities                                                                          |   |                  |        |   |   |   |   |
| Purchases      of property, plant and equipment                                                    |   |                  | (1,914,722  | ) |   | (1,312,260 | ) |
| Net      cash used in investing activities                                                         |   |                  | (1,914,722  | ) |   | (1,312,260 | ) |
|                                                                                               |   |                  |        |   |   |   |   |
| Financing      Activities                                                                          |   |                  |        |   |   |   |   |
| Principal      payments on long-term debt                                                          |   |                  | (11,785,714 | ) |   | (1,524,904 | ) |
| Proceeds      from issuance of long-term debt                                                      |   |                  | 5,000,000   |   |   | - |   |
| Proceeds      from sales of Common Stock                                                           |   |                  | 1,038,350   |   |   | 231,188 |   |
| Tax      benefit from exercise of incentive stock options                                          |   |                  | 19,370      |   |   | - |   |
| Purchases      of Common Stock for treasury                                                        |   |                  | (730,307    | ) |   | (225,291 | ) |
| Dividends      paid                                                                                |   |                  | (1,091,997  | ) |   | (1,074,149 | ) |
| Net      cash used in financing activities                                                         |   |                  | (7,550,298  | ) |   | (2,593,156 | ) |
|                                                                                               |   |                  |        |   |   |   |   |
| Effect      of exchange rate changes on cash                                                       |   |                  | (34,759     | ) |   | 24,953 |   |
| Net      change in cash and cash equivalents                                                       |   |                  | (4,477,221  | ) |   | 5,313,513 |   |
|                                                                                               |   |                  |        |   |   |   |   |
| Cash      and cash equivalents at beginning of period                                              |   |                  | 16,746,673  |   |   | 8,967,625 |   |
| Cash      and cash equivalents at end of period                                                    |   | $                     | 12,269,452  |   | $ | 14,281,138 |   |

----

|                                            | Six      Months Ended |   | Three      Months Ended |
|-------------------------------------------------|-----------------------|--------|-------------------------|
|                                            | July      3, 2010     |   | July      4, 2009       |   | July      3, 2010 |   | July      4, 2009 |
| Basic:                                          |                  |   |                    |   |   |   |   |
| Weighted      average shares outstanding        | 6,069,977             |   | 5,966,787               |   | 6,074,700 |   | 5,967,826 |
|                                            |                  |   |                    |   |   |   |   |
| Diluted:                                        |                  |   |                    |   |   |   |   |
| Weighted      average shares outstanding        | 6,069,977             |   | 5,966,787               |   | 6,074,700 |   | 5,967,826 |
| Dilutive      stock options                     | 107,870               |   | -                       |   | 90,669 |   | 300,979 |
| Denominator      for diluted earnings per share | 6,177,847             |   | 5,966,787               |   | 6,165,369 |   | 6,268,805 |

|                                  | July      3, 2010                  |   | January      2, 2010               |
|---------------------------------------|------------------------------------|--------|------------------------------------|
|                                  |                               |   |                               |
| Raw      material and component parts | $    8,456,195 |   | $    7,837,854 |
| Work      in process                  | 4,703,758                          |   | 4,367,851                          |
| Finished      goods                   | 13,265,655                         |   | 12,314,584                         |
|                                  | $  26,425,608            |   | $  24,520,289            |

----

|                                  |   | Six      Months Ended |       |   |   | Three      Months Ended |   |
|---------------------------------------|--------|-----------------------|------------|--------|--------|-------------------------|--------|
|                                  |   | July      3, 2010     |       |   |   | July      4, 2009       |   |   |   | July      3, 2010 |   |   |   | July      4, 2009 |   |
| Revenues:                             |   |                  |       |   |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Sales      to unaffiliated customers: |   |                  |       |   |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Industrial      Hardware              |   | $                     | 28,237,294 |   |   |                    | $      | 24,760,731 |   |   |   | $ | 14,019,231 |   |   |   | $ | 12,406,409 |   |
| Security      Products                |   |                  | 22,065,334 |   |   |                    |   | 20,916,439 |   |   |   |   | 11,865,642 |   |   |   |   | 11,115,235 |   |
| Metal      Products                   |   |                  | 13,229,592 |   |   |                    |   | 10,842,932 |   |   |   |   | 6,692,792 |   |   |   |   | 4,565,985 |   |
|                                  |   | $                     | 63,532,220 |   |   |                    | $      | 56,520,102 |   |   |   | $ | 32,577,665 |   |   |   | $ | 28,087,629 |   |
|                                  |   |                  |       |   |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income      before income taxes:      |   |                  |       |   |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Industrial      Hardware              |   | $                     | 2,389,134  |   |   |                    | $      | 1,766,519 |   |   |   | $ | 1,289,726 |   |   |   | $ | 1,070,667 |   |
| Security      Products                |   |                  | 1,382,693  |   |   |                    |   | 53,692 |   |   |   |   | 941,244 |   |   |   |   | 606,669 |   |
| Metal      Products                   |   |                  | 129,597    |   |   |                    |   | (1,215,310 | ) |   |   |   | 44,280 |   |   |   |   | (103,657 | ) |
| Operating      Profit                 |   |                  | 3,901,424  |   |   |                    |   | 604,901 |   |   |   |   | 2,275,250 |   |   |   |   | 1,573,679 |   |
| Interest      expense                 |   |                  | (138,069   | )      |   |                    |   | (447,181 | ) |   |   |   | (67,997 | ) |   |   |   | (219,867 | ) |
| Other      income                     |   |                  | 491        |   |   |                    |   | 39,686 |   |   |   |   | 397 |   |   |   |   | 14,077 |   |
|                                  |   | $                     | 3,763,846  |   |   |                    | $      | 197,406 |   |   |   | $ | 2,207,650 |   |   |   | $ | 1,367,889 |   |

----

|                   |   | IndustrialHardwareSegment |          | SecurityProductsSegment |   | MetalProductsSegment |   |   Total |    |
|------------------------|--------|---------------------------|---------------|-------------------------|--------|----------------------|--------|-------------------|---------|
|                   |   |                      |          |                    |   |                 |   |              |    |   |   |   |   |
| Beginning      balance |   | $                         | 2,035,189     |                    | $      | 11,833,816           |   | $                 | — |   | $ | 13,869,005 |   |
| Foreign      exchange  |   |                      |  (16,409 | )                       |   |  —        |   |              | — |   |   |  (16,409 | ) |
| Ending      balance    |   | $                         | 2,018,780     |                    | $      | 11,833,816           |   | $                 | — |   | $ | 13,852,596 |   |

|                                    |   |  IndustrialHardwareSegment |      |  SecurityProductsSegment |   |  MetalProductsSegment |   |    Total |    | Weighted-AverageAmortization      Period (Years) |   |
|-----------------------------------------|--------|---------------------------------|-----------|-------------------------------|--------|----------------------------|--------|-------------------------|---------|--------------------------------------------------|--------|
| 2010      Gross Amount:                 |   |                            |      |                          |   |                       |   |                    |    |                                             |   |   |   |   |   |
| Patents      and developedtechnology    |   | $                               | 2,645,966 |                          | $      | 1,004,403                  |   | $                       | 45,679  |                                             | $      | 3,696,048 |   | 15.9 |   |
| Customer      relationships             |   |                            | 45,825    |                          |   | 1,921,811                  |   |                    | — |                                             |   | 1,967,636 |   |   5.0 |   |
| Non-compete      agreements             |   |                            | 30,000    |                          |   | 90,735                     |   |                    | — |                                             |   | 120,735 |   |   5.0 |   |
| Other                                   |   |                            | —   |                          |   | 128,941                    |   |                    | — |                                             |   | 128,941 |   |   1.0 |   |
| Total      Gross Intangibles            |   | $                               | 2,721,791 |                          | $      | 3,145,890                  |   | $                       | 45,679  |                                             | $      | 5,913,360 |   | 11.6 |   |
|                                    |   |                            |      |                          |   |                       |   |                    |    |                                             |   |   |   |   |   |
| 2010      AccumulatedAmortization:      |   |                            |      |                          |   |                       |   |                    |    |                                             |   |   |   |   |   |
| Patents      and developedtechnology    |   | $                               | 1,302,096 |                          | $      | 379,670                    |   | $                       | 43,384  |                                             | $      | 1,725,150 |   |   |   |
| Customer      relationships             |   |                            | 22,913    |                          |   | 1,438,419                  |   |                    | — |                                             |   | 1,461,332 |   |   |   |
| Non-compete      agreements             |   |                            | 15,000    |                          |   | 80,048                     |   |                    | — |                                             |   | 95,048 |   |   |   |
| Other                                   |   |                            | —   |                          |   | 125,000                    |   |                    | — |                                             |   | 125,000 |   |   |   |
| Total      Gross Amortization           |   | $                               | 1,340,009 |                          | $      | 2,023,137                  |   | $                       | 43,384  |                                             | $      | 3,406,530 |   |   |   |
|                                    |   |                            |      |                          |   |                       |   |                    |    |                                             |   |   |   |   |   |
| Net      July 3, 2010 per Balance Sheet |   | $                               | 1,381,782 |                          | $      | 1,122,753                  |   | $                       | 2,295   |                                             | $      | 2,506,830 |   |   |   |

----

|                                       |   |  IndustrialHardwareSegment |      |  SecurityProductsSegment |   |  MetalProductsSegment |   |    Total |    | Weighted-AverageAmortization      Period (Years) |   |
|--------------------------------------------|--------|---------------------------------|-----------|-------------------------------|--------|----------------------------|--------|-------------------------|---------|--------------------------------------------------|--------|
| 2009      Gross Amount:                    |   |                            |      |                          |   |                       |   |                    |    |                                             |   |   |   |   |   |
| Patents      and developedtechnology       |   | $                               | 2,662,125 |                          | $      | 995,778                    |   | $                       | 45,679  |                                             | $      | 3,703,582 |   | 16.0 |   |
| Customer      relationships                |   |                            | 45,825    |                          |   | 1,921,811                  |   |                    | — |                                             |   | 1,967,636 |   |   5.0 |   |
| Non-compete      agreements                |   |                            | 30,000    |                          |   | 90,735                     |   |                    | — |                                             |   | 120,735 |   |   5.0 |   |
| Other                                      |   |                            | —   |                          |   | 128,941                    |   |                    | — |                                             |   | 128,941 |   |   1.0 |   |
| Total      Gross Intangibles               |   | $                               | 2,737,950 |                          | $      | 3,137,265                  |   | $                       | 45,679  |                                             | $      | 5,920,894 |   | 11.6 |   |
|                                       |   |                            |      |                          |   |                       |   |                    |    |                                             |   |   |   |   |   |
| 2009      AccumulatedAmortization:         |   |                            |      |                          |   |                       |   |                    |    |                                             |   |   |   |   |   |
| Patents      and developedtechnology       |   | $                               | 1,262,599 |                          | $      | 342,109                    |   | $                       | 41,996  |                                             | $      | 1,646,704 |   |   |   |
| Customer      relationships                |   |                            | 18,330    |                          |   | 1,246,219                  |   |                    | — |                                             |   | 1,264,549 |   |   |   |
| Non-compete      agreements                |   |                            | 12,000    |                          |   | 75,943                     |   |                    | — |                                             |   | 87,943 |   |   |   |
| Other                                      |   |                            | —   |                          |   | 125,000                    |   |                    | — |                                             |   | 125,000 |   |   |   |
| Total      Gross Amortization              |   | $                               | 1,292,929 |                          | $      | 1,789,271                  |   | $                       | 41,996  |                                             | $      | 3,124,196 |   |   |   |
|                                       |   |                            |      |                          |   |                       |   |                    |    |                                             |   |   |   |   |   |
| Net      January 2, 2009 per Balance Sheet |   | $                               | 1,445,021 |                          | $      | 1,347,994                  |   | $                       | 3,683   |                                             | $      | 2,796,698 |   |   |   |

|                                    |   | Pension      Benefits |       |
|-----------------------------------------|--------|-----------------------|------------|
|                                    |   | Six      Months Ended |       | Three      Months Ended |   |
|                                    |   | July      3,2010      |       | July      4, 2009 |   | July      3,2010 |   | July      4, 2009 |   |
| Service      cost                       |   | $                     | 1,119,438  |   | $ | 1,094,217 |   | $ | 559,719 |   | $ | 557,372 |   |
| Interest      cost                      |   |                  | 1,454,480  |   |   | 1,414,586 |   |   | 727,239 |   |   | 720,575 |   |
| Expected      return on plan assets     |   |                  | (1,672,552 | ) |   | (1,364,436 | ) |   | (836,276 | ) |   | (695,091 | ) |
| Amortization      of prior service cost |   |                  | 102,286    |   |   | 104,023 |   |   | 51,144 |   |   | 52,993 |   |
| Amortization      of the net loss       |   |                  | 421,577    |   |   | 598,955 |   |   | 210,788 |   |   | 305,129 |   |
| Net      periodic benefit cost          |   | $                     | 1,425,229  |   | $ | 1,847,345 |   | $ | 712,614 |   | $ | 940,978 |   |

----

|                                    |   | Postretirement      Benefits |    |
|-----------------------------------------|--------|------------------------------|---------|
|                                    |   | Six      Months Ended        |    | Three      Months Ended |   |
|                                    |   | July      3,2010             |    | July      4, 2009 |   | July      3,2010 |   | July      4, 2009 |   |
| Service      cost                       |   | $                            | 70,500  |   | $ | 67,982 |   | $ | 35,250 |   | $ | 34,624 |   |
| Interest      cost                      |   |                         | 69,700  |   |   | 66,257 |   |   | 34,850 |   |   | 33,757 |   |
| Expected      return on plan assets     |   |                         | (47,350 | ) |   | (44,751 | ) |   | (23,675 | ) |   | (22,308 | ) |
| Amortization      of prior service cost |   |                         | (11,950 | ) |   | (11,945 | ) |   | (5,975 | ) |   | (6,086 | ) |
| Amortization      of the net loss       |   |                         | (5,300  | ) |   | (12,333 | ) |   | (2,650 | ) |   | (5,220 | ) |
| Net      periodic benefit cost          |   | $                            | 75,600  |   | $ | 65,210 |   | $ | 37,800 |   | $ | 34,767 |   |

----

|                                    |   | Six      Months EndedJuly      3, 2010 |   | Year      EndedJanuary      2, 2010    |
|-----------------------------------------|--------|----------------------------------------|--------|----------------------------------------|
|                                    |   | Shares                                 |   | Weighted      - Average Exercise Price |   | Shares |   | Weighted      - Average Exercise Price |
| Outstanding      at beginning of period |   | 221,750                                |   | $                                      | 10.581 |   | 438,000 |   | $ | 10.432 |
| Granted                                 |   | —                                |   |                                   | — |   | — |   |   | — |
| Cancelled                               |   | —                                |   |                                   | — |   | (62,829 | ) |   | 10.170 |
| Exercised                               |   | 109,300                                |   |                                   | 9.50 |   | (153,421 | ) |   | 10.325 |
| Outstanding      at end of period       |   | 112,450                                |   |                                   | 11.631 |   | 221,750 |   |   | 10.581 |

| Options      Outstanding and Exercisable        |
|-------------------------------------------------|
|    Range      of Exercise Prices |   |   Outstanding      as of July 3, 2010 | Weighted-      Average Remaining Contractual Life |   Weighted-      Average Exercise Price |
| $9.46      – $10.20                       |   | 56,950 | 1.5 |       $   9.732             |
|                                            |   |   55,500 | 4.5 |  13.580 |
|                                            |   | 112,450 | 3.0 |  11.631 |

----

----

|                                    | Three      Months Ended July 3, 2010 |
|-----------------------------------------|--------------------------------------|
|                                    | Industrial                           | Security | Metal |   |
|                                    | Hardware                             | Products | Products | Total |
| Net      sales                          | 100.0%                               | 100.0% | 100.0% | 100.0% |
| Cost      of products sold              | 75.2%                                | 75.2% | 93.0% | 78.8% |
| Gross      margin                       | 24.8%                                | 24.8% | 7.0% | 21.2% |
|                                    |                                 |   |   |   |
| Selling      and administrative expense | 15.6%                                | 16.9% | 6.3% | 14.2% |
| Operating      profit                   | 9.2%                                 | 7.9% | 0.7% | 7.0% |
|                                    |                                 |   |   |   |
|                                    |                                 |   |   |   |
|                                    | Three      Months Ended July 4, 2009 |
|                                    | Industrial                           | Security | Metal |   |
|                                    | Hardware                             | Products | Products | Total |
| Net      sales                          | 100.0%                               | 100.0% | 100.0% | 100.0% |
| Cost      of products sold              | 76.4%                                | 78.2% | 93.0% | 79.8% |
| Gross      margin                       | 23.6%                                | 21.8% | 7.0% | 20.2% |
|                                    |                                 |   |   |   |
| Selling      and administrative expense | 15.0%                                | 16.4% | 9.3% | 14.6% |
| Operating      profit/(loss)            | 8.6%                                 | 5.4% | -2.3% | 5.6% |

----

|                                                                    | Industrial                                                         | Security                                                   | Metal                                                                                  |                                                             |
|-------------------------------------------------------------------------|--------------------------------------------------------------------|------------------------------------------------------------|----------------------------------------------------------------------------------------|------------------------------------------------------------------|
|                                                                    | Hardware                                                           | Products                                                   | Products                                                                               | Total                                                            |
| Net      sales                                                          |          $      1,613 |        $      750       |           $      2,127               |         $      4,490     |
|                                                                    |                                                               |                                                       |                                                                                   |                                                             |
|          Volume            | 8.7%                                                               | 7.4%                                                       | 40.7%                                                                                  | 13.4%                                                            |
|          Prices            | -0.7%                                                              | -1.3%                                                      | 5.9%                                                                                   | 0.1%                                                             |
|          New      products |     5.0%                                       |      0.7%                         |    0.0%                                                                 |      2.5%                               |
|                                                                    | 13.0%                                                              | 6.8%                                                       | 46.6%                                                                                  | 16.0%                                                            |
|                                                                    |                                                               |                                                       |                                                                                   |                                                             |
| Cost      of products sold                                              |         $      1,064       |        $      228       |   $      1,976                                                               |         $      3,268     |
|                                                                    | 11.2%                                                              | 2.6%                                                       | 46.5%                                                                                  | 14.6%                                                            |
|                                                                    |                                                               |                                                       |                                                                                   |                                                             |
| Gross      margin                                                       |       $    549   |     $    522       |         $   151                 |       $      1,222                 |
|                                                                    | 18.7%                                                              | 21.5%                                                      | 47.2%                                                                                  | 21.5%                                                            |
|                                                                    |                                                               |                                                       |                                                                                   |                                                             |
| Selling      and administrative expenses                                |       $    330   |     $    187       |          $     3 |       $    520 |
|                                                                    | 17.7%                                                              | 10.3%                                                      | 0.6%                                                                                   | 12.7%                                                            |
|                                                                    |                                                               |                                                       |                                                                                   |                                                             |
| Operating      profit                                                   |       $    219   |      $    335 |         $   148                 |       $   702       |
|                                                                    | 20.5%                                                              | 55.1%                                                      | 142.7%                                                                                 | 44.6%                                                            |

|                                    | Six      Months Ended July 3, 2010 |
|-----------------------------------------|------------------------------------|
|                                    | Industrial                         | Security | Metal |   |
|                                    | Hardware                           | Products | Products | Total |
| Net      sales                          | 100.0%                             | 100.0% | 100.0% | 100.0% |
| Cost      of products sold              | 76.4%                              | 76.4% | 91.8% | 79.6% |
| Gross      margin                       | 23.6%                              | 23.6% | 8.2% | 20.4% |
|                                    |                               |   |   |   |
| Selling      and administrative expense | 15.1%                              | 17.3% | 7.2% | 14.3% |
| Operating      profit                   | 8.5%                               | 6.3% | 1.0% | 6.1% |
|                                    |                               |   |   |   |
|                                    |                               |   |   |   |
|                                    | Six      Months Ended July 4, 2009 |
|                                    | Industrial                         | Security | Metal |   |
|                                    | Hardware                           | Products | Products | Total |
| Net      sales                          | 100.0%                             | 100.0% | 100.0% | 100.0% |
| Cost      of products sold              | 77.7%                              | 81.4% | 103.1% | 83.9% |
| Gross      margin                       | 22.3%                              | 18.6% | -3.1% | 16.1% |
|                                    |                               |   |   |   |
| Selling      and administrative expense | 15.2%                              | 18.4% | 8.1% | 15.0% |
| Operating      profit/(loss)            | 7.1%                               | 0.2% | -11.2% | 1.1% |

----

|                                                                    | Industrial                                                         | Security                                                     | Metal                                                                                         |                                                         |
|-------------------------------------------------------------------------|--------------------------------------------------------------------|--------------------------------------------------------------|-----------------------------------------------------------------------------------------------|--------------------------------------------------------------|
|                                                                    | Hardware                                                           | Products                                                     | Products                                                                                      | Total                                                        |
| Net      sales                                                          |          $      3,476 |        $      1,149       |            $      2,387                |       $      7,012             |
|                                                                    |                                                               |                                                         |                                                                                          |                                                         |
|          Volume            | 3.7%                                                               | 5.7%                                                         | 17.2%                                                                                         | 7.1%                                                         |
|          Prices            | -0.9%                                                              | -0.7%                                                        | 4.8%                                                                                          | 0.2%                                                         |
|          New      products |     11.2%                                      |      0.5%                           |     0.0%                                                                  |        5.1%               |
|                                                                    | 14.0%                                                              | 5.5%                                                         | 22.0%                                                                                         | 12.4%                                                        |
|                                                                    |                                                               |                                                         |                                                                                          |                                                         |
| Cost      of products sold                                              |         $      2,343       |        $  (151) |   $   960                                                            |         $      3,152 |
|                                                                    | 12.2%                                                              | -0.9%                                                        | 8.6%                                                                                          | 6.6%                                                         |
|                                                                    |                                                               |                                                         |                                                                                          |                                                         |
| Gross      margin                                                       |       $      1,133                   |      $      1,300                   |          $      1,427                            |       $      3,860             |
|                                                                    | 20.5%                                                              | 33.3%                                                        | 418.2%                                                                                        | 42.4%                                                        |
|                                                                    |                                                               |                                                         |                                                                                          |                                                         |
| Selling      and administrative expenses                                |       $    510   |      $    (29)  |          $      82 |       $   563   |
|                                                                    | 13.5%                                                              | -0.8%                                                        | 9.4%                                                                                          | 6.6%                                                         |
|                                                                    |                                                               |                                                         |                                                                                          |                                                         |
| Operating      profit                                                   |       $      623                     |     $      1,329                         |          $      1,345                            |       $      3,297             |
|                                                                    | 35.2%                                                              | 2,475.2%                                                     | 110.7%                                                                                        | 545.0%                                                       |

----

----

----

| Issuer      Purchases of Equity Securities |
|--------------------------------------------|
|    Period                   | (a)      Total Number of Shares Purchased | (b)      Average Price Paid per Share | (c      ) Total Number of Shares Purchased as Part of Publicly Announced Plans or      Programs | (d)      Maximum Number that May Yet Be Purchased Under the Plans or      Programs |
| April      4 – May 1, 2010           | - | - | - | - |
| May      2 – May 29, 2010            | - | - | - | - |
| May      30 – July 3, 2010           | 50,514 | $14.46 | - | - |
| Total                                      | 50,514 | $14.46 | - | - |

----

|                           | THE      EASTERN COMPANY                                                    |
|--------------------------------|-----------------------------------------------------------------------------|
|                           | (Registrant)                                                           |
| DATE:  July 29, 2010 | /s/Leonard      F. Leganza                                                  |
|                           | Leonard      F. LeganzaChairman,      President and Chief Executive Officer |
|                           |                                                                        |
| DATE:  July 29, 2010 | /s/John      L. Sullivan III                                                |
|                           | John      L. Sullivan IIIVice      President and Chief FinancialOfficer     |