----

----

|   | [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED October 2, 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 October 27, 2010 |
|----------------------------|------------------------------------|
| Common Stock, No par value | 6,134,240                          |

----

----

----

| ASSETS                                                                     |   | October 2, 2010 |        | January 2, 2010 |   |
|----------------------------------------------------------------------------|--------|-----------------|-------------|-----------------|--------|
| Current Assets                                                             |   |            |        |            |   |   |   |
| Cash and cash equivalents                                                  |   | $               | 11,928,183  |            | $      | 16,746,673 |   |
| Accounts receivable, less allowances: $549,000 - 2010; $392,000 - 2009     |   |            | 18,122,586  |            |   | 15,326,416 |   |
| Inventories                                                                |   |            | 26,318,909  |            |   | 24,520,289 |   |
| Prepaid expenses and other assets                                          |   |            | 2,692,801   |            |   | 2,037,745 |   |
| Deferred income taxes                                                      |   |            | 1,129,898   |            |   | 1,129,898 |   |
| Total Current Assets                                                       |   |            | 60,192,377  |            |   | 59,761,021 |   |
|                                                                       |   |            |        |            |   |   |   |
|                                                                       |   |            |        |            |   |   |   |
| Property, Plant and Equipment                                              |   |            | 53,681,486  |            |   | 50,339,002 |   |
| Accumulated depreciation                                                   |   |            | (29,550,961 | )               |   | (27,365,369 | ) |
|                                                                       |   |            | 24,130,525  |            |   | 22,973,633 |   |
|                                                                       |   |            |        |            |   |   |   |
|                                                                       |   |            |        |            |   |   |   |
| Goodwill                                                                   |   |            | 13,899,609  |            |   | 13,869,005 |   |
| Trademarks                                                                 |   |            | 150,751     |            |   | 151,341 |   |
| Patents, technology, and other intangibles net of accumulated amortization |   |            | 2,392,985   |            |   | 2,796,698 |   |
| Deferred income taxes                                                      |   |            | 1,016,803   |            |   | 1,283,323 |   |
| Prepaid pension cost                                                       |   |            | 19,960      |            |   | 36,838 |   |
|                                                                       |   |            | 17,480,108  |            |   | 18,137,205 |   |
| TOTAL ASSETS                                                               |   | $               | 101,803,010 |            | $      | 100,871,859 |   |

----

| LIABILITIES AND SHAREHOLDERS’ EQUITY                                        |   | October 2, 2010 |        | January 2, 2010 |   |
|-----------------------------------------------------------------------------------|--------|-----------------|-------------|-----------------|--------|
| Current Liabilities                                                               |   |            |        |            |   |   |   |
| Accounts payable                                                                  |   | $               | 8,454,608   |            | $      | 5,335,317 |   |
| Accrued compensation                                                              |   |            | 2,646,382   |            |   | 1,811,236 |   |
| Other accrued expenses                                                            |   |            | 1,191,109   |            |   | 1,191,360 |   |
| Current portion of long-term debt                                                 |   |            | 714,286     |            |   | 7,142,858 |   |
| Total Current Liabilities                                                         |   |            | 13,006,385  |            |   | 15,480,771 |   |
|                                                                              |   |            |        |            |   |   |   |
|                                                                              |   |            |        |            |   |   |   |
| Other long-term liabilities                                                       |   |            | 1,042,650   |            |   | 1,077,247 |   |
| Long-term debt, less current portion                                              |   |            | 3,750,000   |            |   | 4,285,713 |   |
| Accrued postretirement benefits                                                   |   |            | 1,324,704   |            |   | 1,341,498 |   |
| Accrued pension cost                                                              |   |            | 12,536,976  |            |   | 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: 8,828,969 shares in 2010 and 8,709,384 shares in 2009                     |   |            | 27,426,391  |            |   | 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                                                                 |   |            | 69,824,440  |            |   | 67,558,201 |   |
|                                                                              |   |            |        |            |   |   |   |
| Accumulated other comprehensive income (loss):                                    |   |            |        |            |   |   |   |
| Foreign currency translation                                                      |   |            | 2,027,092   |            |   | 1,696,013 |   |
| Unrecognized net pension and postretirement benefit costs, net of tax             |   |            | (10,029,905 | )               |   | (10,517,971 | ) |
|    Accumulated other comprehensive loss                            |   |            | (8,002,813  | )               |   | (8,821,958 | ) |
| Total Shareholders’ Equity                                                  |   |            | 70,142,295  |            |   | 66,597,304 |   |
| TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY                                  |   | $               | 101,803,010 |            | $      | 100,871,859 |   |

----

|                                |   | Nine Months Ended |            | Three Months Ended |   |
|-------------------------------------|--------|-------------------|-----------------|--------------------|--------|
|                                |   |              | October 2, 2010 |               |   | October 3, 2009 |   |   | October 2, 2010 |   |   | October 3, 2009 |   |
| Net sales                           |   | $                 | 97,490,901      |               | $      | 84,651,194 |   | $ | 33,958,681 |   | $ | 28,131,092 |   |
| Cost of products sold               |   |              | (77,615,059     | )                  |   | (69,832,292 | ) |   | (27,040,159 | ) |   | (22,409,041 | ) |
| Gross margin                        |   |              | 19,875,842      |               |   | 14,818,902 |   |   | 6,918,522 |   |   | 5,722,051 |   |
|                                |   |              |            |               |   |   |   |   |   |   |   |   |   |
| Selling and administrative expenses |   |              | (13,736,128     | )                  |   | (12,863,825 | ) |   | (4,680,232 | ) |   | (4,371,875 | ) |
| Operating profit                    |   |              | 6,139,714       |               |   | 1,955,077 |   |   | 2,238,290 |   |   | 1,350,176 |   |
|                                |   |              |            |               |   |   |   |   |   |   |   |   |   |
| Interest expense                    |   |              | (203,040        | )                  |   | (682,595 | ) |   | (64,971 | ) |   | (235,414 | ) |
| Other income                        |   |              | 511             |               |   | 49,352 |   |   | 20 |   |   | 9,666 |   |
| Income before income taxes          |   |              | 5,937,185       |               |   | 1,321,834 |   |   | 2,173,339 |   |   | 1,124,428 |   |
|                                |   |              |            |               |   |   |   |   |   |   |   |   |   |
| Income taxes                        |   |              | 2,026,908       |               |   | 654,605 |   |   | 683,591 |   |   | 217,051 |   |
| Net income                          |   | $                 | 3,910,277       |               | $      | 667,229 |   | $ | 1,489,748 |   | $ | 907,377 |   |
|                                |   |              |            |               |   |   |   |   |   |   |   |   |   |
| Earnings per Share:                 |   |              |            |               |   |   |   |   |   |   |   |   |   |
| Basic                               |   | $                 | .64             |               | $      | .11 |   | $ | .24 |   | $ | .15 |   |
|                                |   |              |            |               |   |   |   |   |   |   |   |   |   |
| Diluted                             |   | $                 | .63             |               | $      | .11 |   | $ | .24 |   | $ | .15 |   |
|                                |   |              |            |               |   |   |   |   |   |   |   |   |   |
| Cash dividends per share:           |   | $                 | .27             |               | $      | .27 |   | $ | .09 |   | $ | .09 |   |

|                                                                                                                                                                | Nine Months Ended |            | Three Months Ended |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------|-----------------|--------------------|--------|
|                                                                                                                                                                |              | October 2, 2010 |               |   | October 3, 2009 |   |   | October 2, 2010 |   |   | October 3, 2009 |   |
| Net income                                                                                                                                                          | $                 | 3,910,277       |               | $      | 667,229 |   | $ | 1,489,748 |   | $ | 907,377 |   |
| Other comprehensive income:                                                                                                                                         |              |            |               |   |   |   |   |   |   |   |   |   |
| Change in foreign currency translation                                                                                                                              |              | 331,079         |               |   | 731,179 |   |   | 436,845 |   |   | 415,049 |   |
| Change in pension and postretirement benefit costs, net of taxes of:2010 – $266,520 and $87,584, respectively2009 – $359,575 and $119,858, respectively |              | 488,066         |               |   | 658,474 |   |   | 160,389 |   |   | 219,491 |   |
| Change in fair value of derivative financial instruments, net of income taxes of:2009 – $107,304 and $2,712, respectively                                     |              | -               |               |   | 196,503 |   |   | - |   |   | 4,966 |   |
|                                                                                                                                                                |              | 819,145         |               |   | 1,586,156 |   |   | 597,234 |   |   | 639,506 |   |
| Comprehensive income                                                                                                                                                | $                 | 4,729,422       |               | $      | 2,253,385 |   | $ | 2,086,982 |   | $ | 1,546,883 |   |

----

|                                                                              |   | Nine Months Ended |        |
|-----------------------------------------------------------------------------------|--------|-------------------|-------------|
|                                                                              |   | October 2, 2010   |        | October 3, 2009 |   |
| Operating Activities                                                              |   |              |        |   |   |   |   |
| Net income                                                                        |   | $                 | 3,910,277   |   | $ | 667,229 |   |
| Adjustments to reconcile net income to net cash provided by operating activities: |   |              |        |   |   |   |   |
| Depreciation and amortization                                                     |   |              | 2,920,327   |   |   | 3,055,594 |   |
| Provision for doubtful accounts                                                   |   |              | 170,388     |   |   | 261,718 |   |
| Loss on sale of equipment and other assets                                        |   |              | 115,038     |   |   | 482 |   |
| Issuance of Common Stock for directors’ fees                                |   |              | 18,456      |   |   | 24,603 |   |
| Changes in operating assets and liabilities:                                      |   |              |        |   |   |   |   |
| Accounts receivable                                                               |   |              | (2,859,473  | ) |   | 1,848,284 |   |
| Inventories                                                                       |   |              | (1,644,318  | ) |   | 7,157,473 |   |
| Prepaid expenses and other                                                        |   |              | (579,781    | ) |   | 1,709,516 |   |
| Prepaid pension cost                                                              |   |              | 1,250,320   |   |   | 2,068,254 |   |
| Other assets                                                                      |   |              | (137,414    | ) |   | (73,290 | ) |
| Accounts payable                                                                  |   |              | 3,065,325   |   |   | (1,749,903 | ) |
| Accrued compensation                                                              |   |              | 823,385     |   |   | (493,541 | ) |
| Other accrued expenses                                                            |   |              | (106,969    | ) |   | (689,021 | ) |
| Net cash provided by operating activities                                         |   |              | 6,945,561   |   |   | 13,787,398 |   |
|                                                                              |   |              |        |   |   |   |   |
| Investing Activities                                                              |   |              |        |   |   |   |   |
| Purchases of property, plant and equipment                                        |   |              | (3,622,267  | ) |   | (1,774,868 | ) |
| Proceeds from sale of equipment and other assets                                  |   |              | 275         |   |   | - |   |
| Net cash used in investing activities                                             |   |              | (3,621,992  | ) |   | (1,774,868 | ) |
|                                                                              |   |              |        |   |   |   |   |
| Financing Activities                                                              |   |              |        |   |   |   |   |
| Principal payments on long-term debt                                              |   |              | (11,964,286 | ) |   | (2,240,202 | ) |
| Proceeds from issuance of long-term debt                                          |   |              | 5,000,000   |   |   | - |   |
| Proceeds from sales of Common Stock                                               |   |              | 1,123,649   |   |   | 544,963 |   |
| Tax benefit from exercise of incentive stock options                              |   |              | 47,809      |   |   | 73,835 |   |
| Purchases of Common Stock for treasury                                            |   |              | (730,307    | ) |   | (225,291 | ) |
| Dividends paid                                                                    |   |              | (1,644,039  | ) |   | (1,613,897 | ) |
| Net cash used in financing activities                                             |   |              | (8,167,174  | ) |   | (3,460,592 | ) |
|                                                                              |   |              |        |   |   |   |   |
| Effect of exchange rate changes on cash                                           |   |              | 25,115      |   |   | 87,752 |   |
| Net change in cash and cash equivalents                                           |   |              | (4,818,490  | ) |   | 8,639,690 |   |
|                                                                              |   |              |        |   |   |   |   |
| Cash and cash equivalents at beginning of period                                  |   |              | 16,746,673  |   |   | 8,967,625 |   |
| Cash and cash equivalents at end of period                                        |   | $                 | 11,928,183  |   | $ | 17,607,315 |   |

----

|                                       | Nine Months Ended |   | Three Months Ended |
|--------------------------------------------|-------------------|--------|--------------------|
|                                       | October 2, 2010   |   | October 3, 2009    |   | October 2, 2010 |   | October 3, 2009 |
| Basic:                                     |              |   |               |   |   |   |   |
| Weighted average shares outstanding        | 6,090,452         |   | 5,974,974          |   | 6,131,401 |   | 5,991,345 |
|                                       |              |   |               |   |   |   |   |
| Diluted:                                   |              |   |               |   |   |   |   |
| Weighted average shares outstanding        | 6,090,452         |   | 5,974,974          |   | 6,131,401 |   | 5,991,345 |
| Dilutive stock options                     | 97,519            |   | 288,359            |   | 76,818 |   | 215,478 |
| Denominator for diluted earnings per share | 6,187,971         |   | 6,263,333          |   | 6,208,219 |   | 6,206,823 |

|                             | October 2, 2010                    |   | January 2, 2010                    |
|----------------------------------|------------------------------------|--------|------------------------------------|
|                             |                               |   |                               |
| Raw material and component parts | $    8,422,051 |   | $    7,837,854 |
| Work in process                  | 4,684,766                          |   | 4,367,851                          |
| Finished goods                   | 13,212,092                         |   | 12,314,584                         |
|                             | $  26,318,909            |   | $  24,520,289            |

----

|                             |   | Nine Months Ended |       |   |   | Three Months Ended |   |
|----------------------------------|--------|-------------------|------------|--------|--------|--------------------|--------|
|                             |   | October 2, 2010   |       |   |   | October 3, 2009    |   |   |   | October 2, 2010 |   |   |   | October 3, 2009 |   |
| Revenues:                        |   |              |       |   |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Sales to unaffiliated customers: |   |              |       |   |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Industrial Hardware              |   | $                 | 42,971,288 |   |   |               | $      | 36,886,183 |   |   |   | $ | 14,733,993 |   |   |   | $ | 12,125,452 |   |
| Security Products                |   |              | 34,646,960 |   |   |               |   | 32,113,878 |   |   |   |   | 12,581,626 |   |   |   |   | 11,197,439 |   |
| Metal Products                   |   |              | 19,872,653 |   |   |               |   | 15,651,133 |   |   |   |   | 6,643,062 |   |   |   |   | 4,808,201 |   |
|                             |   | $                 | 97,490,901 |   |   |               | $      | 84,651,194 |   |   |   | $ | 33,958,681 |   |   |   | $ | 28,131,092 |   |
|                             |   |              |       |   |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income before income taxes:      |   |              |       |   |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Industrial Hardware              |   | $                 | 3,960,738  |   |   |               | $      | 2,849,623 |   |   |   | $ | 1,571,604 |   |   |   | $ | 1,083,105 |   |
| Security Products                |   |              | 2,308,792  |   |   |               |   | 873,187 |   |   |   |   | 926,098 |   |   |   |   | 819,495 |   |
| Metal Products                   |   |              | (129,816   | )      |   |               |   | (1,767,733 | ) |   |   |   | (259,412 | ) |   |   |   | (552,424 | ) |
| Operating Profit                 |   |              | 6,139,714  |   |   |               |   | 1,955,077 |   |   |   |   | 2,238,290 |   |   |   |   | 1,350,176 |   |
| Interest expense                 |   |              | (203,040   | )      |   |               |   | (682,595 | ) |   |   |   | (64,971 | ) |   |   |   | (235,414 | ) |
| Other income                     |   |              | 511        |   |   |               |   | 49,352 |   |   |   |   | 20 |   |   |   |   | 9,666 |   |
|                             |   | $                 | 5,937,185  |   |   |               | $      | 1,321,834 |   |   |   | $ | 2,173,339 |   |   |   | $ | 1,124,428 |   |

----

|              |   | IndustrialHardwareSegment |         | SecurityProductsSegment |   | MetalProductsSegment |   |   Total |    |
|-------------------|--------|---------------------------|--------------|-------------------------|--------|----------------------|--------|-------------------|---------|
|              |   |                      |         |                    |   |                 |   |              |    |   |   |   |   |
| Beginning balance |   | $                         | 2,035,189    |                    | $      | 11,833,816           |   | $                 | — |   | $ | 13,869,005 |   |
| Foreign exchange  |   |                      |  30,604 |                    |   |  —        |   |              | — |   |   |  30,604 |   |
| Ending balance    |   | $                         | 2,065,793    |                    | $      | 11,833,816           |   | $                 | — |   | $ | 13,899,609 |   |

|                                  |   |  IndustrialHardwareSegment |      |  SecurityProductsSegment |   |  MetalProductsSegment |   |    Total |    | Weighted-AverageAmortization Period (Years) |   |
|---------------------------------------|--------|---------------------------------|-----------|-------------------------------|--------|----------------------------|--------|-------------------------|---------|---------------------------------------------|--------|
| 2010 Gross Amount:                    |   |                            |      |                          |   |                       |   |                    |    |                                        |   |   |   |   |   |
| Patents and developedtechnology       |   | $                               | 2,706,677 |                          | $      | 1,014,015                  |   | $                       | 45,679  |                                        | $      | 3,766,371 |   | 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                                 |   |                            | —   |                          |   | 125,000                    |   |                    | — |                                        |   | 125,000 |   |   1.0 |   |
| Total Gross Intangibles               |   | $                               | 2,782,502 |                          | $      | 3,151,561                  |   | $                       | 45,679  |                                        | $      | 5,979,742 |   | 11.6 |   |
|                                  |   |                            |      |                          |   |                       |   |                    |    |                                        |   |   |   |   |   |
| 2010 AccumulatedAmortization:         |   |                            |      |                          |   |                       |   |                    |    |                                        |   |   |   |   |   |
| Patents and developedtechnology       |   | $                               | 1,360,639 |                          | $      | 398,716                    |   | $                       | 44,078  |                                        | $      | 1,803,433 |   |   |   |
| Customer relationships                |   |                            | 25,204    |                          |   | 1,534,519                  |   |                    | — |                                        |   | 1,559,723 |   |   |   |
| Non-compete agreements                |   |                            | 16,500    |                          |   | 82,101                     |   |                    | — |                                        |   | 98,601 |   |   |   |
| Other                                 |   |                            | —   |                          |   | 125,000                    |   |                    | — |                                        |   | 125,000 |   |   |   |
| Total Gross Amortization              |   | $                               | 1,402,343 |                          | $      | 2,140,336                  |   | $                       | 44,078  |                                        | $      | 3,586,757 |   |   |   |
|                                  |   |                            |      |                          |   |                       |   |                    |    |                                        |   |   |   |   |   |
| Net October 2, 2010 per Balance Sheet |   | $                               | 1,380,159 |                          | $      | 1,011,225                  |   | $                       | 1,601   |                                        | $      | 2,392,985 |   |   |   |

----

|                                  |   |  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, 2010 per Balance Sheet |   | $                               | 1,445,021 |                          | $      | 1,347,994                  |   | $                       | 3,683   |                                        | $      | 2,796,698 |   |   |   |

|                               |   | Pension Benefits  |       |
|------------------------------------|--------|-------------------|------------|
|                               |   | Nine Months Ended |       | Three Months Ended |   |
|                               |   | October 2,2010    |       | October 3, 2009 |   | October 2,2010 |   | October 3, 2009 |   |
| Service cost                       |   | $                 | 1,679,157  |   | $ | 1,641,325 |   | $ | 559,719 |   | $ | 547,108 |   |
| Interest cost                      |   |              | 2,181,721  |   |   | 2,121,880 |   |   | 727,241 |   |   | 707,294 |   |
| Expected return on plan assets     |   |              | (2,508,828 | ) |   | (2,046,653 | ) |   | (836,276 | ) |   | (682,217 | ) |
| Amortization of prior service cost |   |              | 153,428    |   |   | 156,033 |   |   | 51,142 |   |   | 52,010 |   |
| Amortization of the net loss       |   |              | 632,366    |   |   | 898,432 |   |   | 210,789 |   |   | 299,477 |   |
| Net periodic benefit cost          |   | $                 | 2,137,844  |   | $ | 2,771,017 |   | $ | 712,615 |   | $ | 923,672 |   |

----

|                               |   | Postretirement Benefits |    |
|------------------------------------|--------|-------------------------|---------|
|                               |   | Nine Months Ended       |    | Three Months Ended |   |
|                               |   | October 2,2010          |    | October 3, 2009 |   | October 2,2010 |   | October 3, 2009 |   |
| Service cost                       |   | $                       | 83,090  |   | $ | 101,972 |   | $ | 12,590 |   | $ | 33,990 |   |
| Interest cost                      |   |                    | 101,233 |   |   | 99,385 |   |   | 31,533 |   |   | 33,128 |   |
| Expected return on plan assets     |   |                    | (70,693 | ) |   | (67,126 | ) |   | (23,343 | ) |   | (22,375 | ) |
| Amortization of prior service cost |   |                    | (13,290 | ) |   | (17,917 | ) |   | (1,340 | ) |   | (5,972 | ) |
| Amortization of the net loss       |   |                    | (17,916 | ) |   | (18,499 | ) |   | (12,616 | ) |   | (6,166 | ) |
| Net periodic benefit cost          |   | $                       | 82,424  |   | $ | 97,815 |   | $ | 6,824 |   | $ | 32,605 |   |

|                               |   | Nine Months EndedOctober 2, 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                          |   | (118,298                         | )      |                              | 9.50 |   | (153,421 | ) |   | 10.325 |
| Outstanding at end of period       |   | 103,452                          |   |                              | 11.818 |   | 221,750 |   |   | 10.581 |

----

| Options Outstanding and Exercisable        |
|--------------------------------------------|
|    Range of Exercise Prices |   |   Outstanding as of October 2, 2010 | Weighted- Average Remaining Contractual Life |   Weighted- Average Exercise Price |
| $9.46 – $10.20                       |   | 47,952 | 1.4 |  $  9.779 |
| $13.58                                     |   |   55,500 | 4.2 |        13.580 |
|                                       |   | 103,452 | 2.9 |       11.818 |

----

----

|                               | Three Months Ended October 2, 2010 |
|------------------------------------|------------------------------------|
|                               | Industrial                         | Security | Metal |   |
|                               | Hardware                           | Products | Products | Total |
| Net sales                          | 100.0%                             | 100.0% | 100.0% | 100.0% |
| Cost of products sold              | 74.7%                              | 76.5% | 96.6% | 79.6% |
| Gross margin                       | 25.3%                              | 23.5% | 3.4% | 20.4% |
|                               |                               |   |   |   |
| Selling and administrative expense | 14.6%                              | 16.2% | 7.3% | 13.8% |
| Operating profit/(loss)            | 10.7%                              | 7.3% | -3.9% | 6.6% |
|                               |                               |   |   |   |
|                               |                               |   |   |   |
|                               | Three Months Ended October 3, 2009 |
|                               | Industrial                         | Security | Metal |   |
|                               | Hardware                           | Products | Products | Total |
| Net sales                          | 100.0%                             | 100.0% | 100.0% | 100.0% |
| Cost of products sold              | 75.5%                              | 75.1% | 101.1% | 79.7% |
| Gross margin                       | 24.5%                              | 24.9% | -1.1% | 20.3% |
|                               |                               |   |   |   |
| Selling and administrative expense | 15.6%                              | 17.6% | 10.4% | 15.5% |
| Operating profit/(loss)            | 8.9%                               | 7.3% | -11.5% | 4.8% |

----

|                                                               | Industrial                                                       | Security                                                        | Metal                                                                         |                                                             |
|--------------------------------------------------------------------|------------------------------------------------------------------|-----------------------------------------------------------------|-------------------------------------------------------------------------------|------------------------------------------------------------------|
|                                                               | Hardware                                                         | Products                                                        | Products                                                                      | Total                                                            |
| Net sales                                                          |          $ 2,609    |        $ 1,384               |           $ 1,835           |         $ 5,828          |
|                                                               |                                                             |                                                            |                                                                          |                                                             |
|          Volume       | 17.5%                                                            | 4.8%                                                            | 21.6%                                                                         | 13.1%                                                            |
|          Prices       | -0.5%                                                            | 6.3%                                                            | 16.6%                                                                         | 5.1%                                                             |
|          New products |     4.5%                                     |      1.3%                              |    0.0%                                                        |      2.5%                               |
|                                                               | 21.5%                                                            | 12.4%                                                           | 38.2%                                                                         | 20.7%                                                            |
|                                                               |                                                             |                                                            |                                                                          |                                                             |
| Cost of products sold                                              |         $ 1,855          |        $ 1,218               |   $ 1,559                                                           |         $ 4,632          |
|                                                               | 20.3%                                                            | 14.5%                                                           | 32.1%                                                                         | 20.7%                                                            |
|                                                               |                                                             |                                                            |                                                                          |                                                             |
| Gross margin                                                       |       $    754 |     $    166            |         $   276        |       $ 1,196                      |
|                                                               | 25.3%                                                            | 6.0%                                                            | 543.4%                                                                        | 20.9%                                                            |
|                                                               |                                                             |                                                            |                                                                          |                                                             |
| Selling and administrative expenses                                |       $    266 |     $      59 |          $   (17) |       $    308 |
|                                                               | 14.0%                                                            | 3.0%                                                            | -3.4%                                                                         | 7.1%                                                             |
|                                                               |                                                             |                                                            |                                                                          |                                                             |
| Operating profit                                                   |       $    488 |      $    107      |         $   293        |       $   888       |
|                                                               | 45.1%                                                            | 13.0%                                                           | 53.0%                                                                         | 65.8%                                                            |

|                               | Nine Months Ended October 2, 2010 |
|------------------------------------|-----------------------------------|
|                               | Industrial                        | Security | Metal |   |
|                               | Hardware                          | Products | Products | Total |
| Net sales                          | 100.0%                            | 100.0% | 100.0% | 100.0% |
| Cost of products sold              | 75.8%                             | 76.4% | 93.4% | 79.6% |
| Gross margin                       | 24.2%                             | 23.6% | 6.6% | 20.4% |
|                               |                              |   |   |   |
| Selling and administrative expense | 15.0%                             | 16.9% | 7.3% | 14.1% |
| Operating profit/(loss)            | 9.2%                              | 6.7% | -0.7% | 6.3% |
|                               |                              |   |   |   |
|                               |                              |   |   |   |
|                               | Nine Months Ended October 3, 2009 |
|                               | Industrial                        | Security | Metal |   |
|                               | Hardware                          | Products | Products | Total |
| Net sales                          | 100.0%                            | 100.0% | 100.0% | 100.0% |
| Cost of products sold              | 76.9%                             | 79.2% | 102.5% | 82.5% |
| Gross margin                       | 23.1%                             | 20.8% | -2.5% | 17.5% |
|                               |                              |   |   |   |
| Selling and administrative expense | 15.4%                             | 18.1% | 8.8% | 15.2% |
| Operating profit/(loss)            | 7.7%                              | 2.7% | -11.3% | 2.3% |

----

|                                                               | Industrial                                                       | Security                                                              | Metal                                                                                         |                                                       |
|--------------------------------------------------------------------|------------------------------------------------------------------|-----------------------------------------------------------------------|-----------------------------------------------------------------------------------------------|------------------------------------------------------------|
|                                                               | Hardware                                                         | Products                                                              | Products                                                                                      | Total                                                      |
| Net sales                                                          |          $ 6,085    |        $ 2,533                     |            $ 4,222                     |       $ 12,840               |
|                                                               |                                                             |                                                                  |                                                                                          |                                                       |
|          Volume       | 8.3%                                                             | 5.4%                                                                  | 18.6%                                                                                         | 9.1%                                                       |
|          Prices       | -0.8%                                                            | 1.7%                                                                  | 8.4%                                                                                          | 1.9%                                                       |
|          New products |     9.0%                                     |      0.8%                                    |     0.0%                                                                  |      4.2%                         |
|                                                               | 16.5%                                                            | 7.9%                                                                  | 27.0%                                                                                         | 15.2%                                                      |
|                                                               |                                                             |                                                                  |                                                                                          |                                                       |
| Cost of products sold                                              |         $ 4,198          |        $  1,066          |   $ 2,519                                                                           |         $ 7,783    |
|                                                               | 14.8%                                                            | 4.2%                                                                  | 15.7%                                                                                         | 11.1%                                                      |
|                                                               |                                                             |                                                                  |                                                                                          |                                                       |
| Gross margin                                                       |       $ 1,887                      |      $ 1,467                                 |          $ 1,703                                 |       $ 5,057                |
|                                                               | 22.2%                                                            | 21.9%                                                                 | 434.4%                                                                                        | 34.1%                                                      |
|                                                               |                                                             |                                                                  |                                                                                          |                                                       |
| Selling and administrative expenses                                |       $    776 |      $      31 |          $      65 |       $   872 |
|                                                               | 13.7%                                                            | 0.5%                                                                  | 4.7%                                                                                          | 6.8%                                                       |
|                                                               |                                                             |                                                                  |                                                                                          |                                                       |
| Operating profit                                                   |       $ 1,111                      |     $ 1,436                                       |          $ 1,638                                 |       $ 4,185                |
|                                                               | 39.0%                                                            | 164.4%                                                                | 92.7%                                                                                         | 214.0%                                                     |

----

----

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|                              | THE EASTERN COMPANY                                               |
|-----------------------------------|-------------------------------------------------------------------|
|                              | (Registrant)                                                 |
| DATE:  October 28, 2010 | /s/Leonard F. Leganza                                             |
|                              | Leonard F. LeganzaChairman, President and Chief Executive Officer |
|                              |                                                              |
| DATE:  October 28, 2010 | /s/John L. Sullivan III                                           |
|                              | John L. Sullivan IIIVice President and Chief Financial Officer    |