Document:

Exhibit 10.1

                          SUBORDINATED PROMISSORY NOTE

$2,000,000.00                                                   August 24, 2007
                                                              New York, New York

      For good and valuable consideration, the receipt of which is hereby
acknowledged, Air Industries Group, Inc., a Delaware corporation (the
"Company"), promises to pay to the order of John Gantt and Lugenia Gantt or
their assigns (collectively, the "Holder"), the principal sum of Two Million
Dollars ($2,000,000.00), as such amount may be increased pursuant to Section
1(d) of this Note, together with interest thereon as provided for herein, which
shall be payable (i) in one instalment in the principal amount of $500,000 due
on August 24, 2008 and (ii) twelve consecutive quarterly installments of
principal in the amount of one-hundred twenty-five thousand dollars, commencing
on the November 30, 2008 and continuing through August 31, 2011, as such amount
may be increased pursuant to Section 1(d) of this Note, plus accrued interest
thereon from August 24, 2008, payable on the last business day of each February,
May, August and November, commencing November 28, 2008, and continuing through
and including August 31, 2011, or, if earlier, (ii) when, upon or after the
occurrence of an Event of Default (as defined below), such amount is declared
due and payable by the Holder or made automatically due and payable in
accordance with the terms hereof (the "Maturity Date").

      Interest shall be accrue on any portion of the principal amount of this
Note outstanding from time to time until payment thereof in full, at a simple
rate of seven percent (7%) per annum, commencing on August 24, 2008.
Notwithstanding the foregoing, effective upon and during the continuance of
occurrence of an Event of Default (as hereinafter defined), the outstanding
balance of any amount owed under this Note shall bear interest ("Default
Interest") at the rate of eleven percent (11%) per annum, with the Default
Interest accruing from and including such date of the occurrence of an Event of
Default. Interest shall be calculated on the basis of a 365/366 day year and the
actual number of days elapsed. In no event shall the Holder hereof, or any
permitted successor or assign, be entitled to receive, collect or retain any
amount of interest paid hereon in excess of that permitted by applicable law.

      This Note may be prepaid in whole or in part at any time. All payments
made pursuant to this Note shall be applied first to reimbursable expenses
(including the expenses and costs described in Section 4(f) below), interest
accrued, if any, and then principal.

      This Note is issued pursuant to that certain Stock Purchase Agreement,
dated as of March 9, 2007, as amended by Amendment No.1 thereto dated as of
August 2, 2007 (the "Stock Purchase Agreement"), entered into between the
Company and the Holder.

      The following is a statement of rights of the Holder and the conditions to
which this Note is subject, and to which the Holder, by acceptance of this Note,
agrees:

      1. Subordination. (a) This Note will be subordinate and inferior to the
Company's Senior Indebtedness (as hereinafter defined). The Company for itself,
its successors and assigns, covenants and agrees and the Holder of this Note,
for himself, his successors and assigns, by his acceptance of this Note likewise
covenants and agrees that, to the extent provided

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below, the payment of all amounts due pursuant to this Note is hereby expressly
subordinated and junior in right of payment to the extent and in the manner
hereinafter set forth, to the Company's Senior Indebtedness. As used herein, the
term "Senior Indebtedness" shall mean the principal of, and interest and
premium, if any, on any and all, (i) indebtedness of the Company for borrowed
money or obligations with respect to which the Company is a guarantor, to banks,
insurance companies, or other financial institutions or entities regularly
engaged in the business of lending money, in each case as in effect as of the
date hereof or as may be borrowed hereafter for working capital of the Company
or one of its subsidiaries, or the acquisition by the Company of one or more
businesses, and (ii) any such indebtedness or any debentures, notes or other
evidence of indebtedness issued in exchange for or to refinance such Senior
Indebtedness, or any indebtedness arising from the satisfaction of such Senior
Indebtedness by a guarantor, provided that such indebtedness issued in exchange
for or to refinance Senior Indebtedness or arising from the satisfaction of
Senior Indebtedness by a Guarantor is on commercially reasonable terms as of the
date of incurrence not to exceed the principal amount under such Senior
Indebtedness and provided further that the Company provides the Holder with
prior written notice of such action.

            (b) Upon the acceleration of any Senior Indebtedness or upon the
maturity of all or any portion of the principal amount of any Senior
Indebtedness by lapse of time, acceleration or otherwise, all such Senior
Indebtedness which has been so accelerated or matured shall first indefeasibly
be paid in full before any payment is made by the Company or any person acting
on behalf of the Company on account of any obligations evidenced by this Note.

            (c) The Company shall not pay any principal portion of this Note, or
interest accrued thereon, before the scheduled due date thereof if at such time
there exists a Blockage Event (as hereafter defined) and written notice thereof
has been given to the Company and the Holder by the holders of the Senior
Indebtedness.

            (d) A "Blockage Event" is deemed to exist for the period of time
commencing on the date of receipt by the Holder of written notice of the
occurrence of a Default or an Event of Default (as defined in the instruments
evidencing the Senior Indebtedness), which notice shall specify such Default or
Event of Default, and ending on:

                  (i) the date such Default or Event of Default under the Senior
Indebtedness, as applicable, is cured or waived, provided that such Default or
Event of Default is in the payment of any amount due thereunder; or

                  (ii) in the case of any other Default or Event of Default
under the Senior Indebtedness, the earlier of (A) the date on which such Default
or Event of Default shall have been cured or waived and (B) the date that is 180
days after the occurrence of such Default or Event of Default, provided that a
Blockage Event with respect to a single specified Default or Event of Default
may be deemed to occur only once for each twelve-month period, provided,
further, that no Default or Event of Default that existed at the commencement
of, or during the pendency of, a Blockage Event shall serve as the basis for the
institution of any subsequent Blockage Event.

      The Holder has the right, but not the obligation, to cure any such Default
or Event of Default under Senior Indebtedness to the extent it can be

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cured by the payment of money. If the Holder shall have cured any such Default
or Event of Default under Senior Indebtedness to the extent such Default or
Event of Default can be cured by the payment of money, then such amount of
interest as shall have accrued on this Note during the continuance of the
Blockage Event (each, an "Additional Principal Amount") shall be added to the
aggregate principal amount then owing to the Holder pursuant to this Note. The
Company shall pay equal quarterly installments of each Additional Principal
Amount pursuant to the first paragraph of this Note from the date such
Additional Principal Amount is incurred pursuant to the first paragraph through
and including August 31, 2011, subject to all principal amounts being declared
due and payable or made automatically due and payable when, upon or after the
occurrence of an Event of Default under this Note.

            (e) At any time there exists a Blockage Event, (i) the Company shall
not, directly or indirectly, make any payment of any part of this Note, (ii) the
Holder shall not demand or accept from the Company or any other person any such
payment or cancel, set-off or otherwise discharge any part of the indebtedness
represented by this Note, and (iii) neither the Company nor the Holder shall
otherwise take or permit any action prejudicial to or inconsistent with the
priority position of any holder of Senior Indebtedness over the Holder of this
Note.

            (f) No right of any holder of Senior Indebtedness to enforce the
subordination provisions of this obligation shall be impaired by any act or
failure to act by the Company or the Holder or by their failure to comply with
this Note or any other agreement or document evidencing, related to or securing
the obligations hereunder. Without in any way limiting the generality of the
preceding sentence, the holders of Senior Indebtedness may, at any time and from
time to time, without the consent of or notice to the Holder, without incurring
responsibility to the Holder and without impairing or releasing the
subordination provided in this Note or the obligations of the Holder to the
holders of Senior Indebtedness, do any one or more of the following: (i) change
the manner, place or terms of payment of any Senior Indebtedness provided that
such change does not materially impact Holder in an adverse manner; (ii) sell,
exchange, release or otherwise deal with any property pledged, mortgaged or
otherwise securing any Senior Indebtedness; (iii) release any person or entity
liable in any manner for the collection of any Senior Indebtedness; and (iv)
exercise or refrain from exercising any rights against the Company or any other
person or entity.

            (g) In the event that the Company shall make any payment or
prepayment to the Holder on account of the obligations under this Note which is
prohibited by this Section, such payment shall be held by the Holder, in trust
for the benefit of, and shall be paid forthwith over and delivered to, the
holders of Senior Indebtedness (pro rata as to each of such holders on the basis
of the respective amounts and priorities of Senior Indebtedness held by them) to
the extent necessary to pay all Senior Indebtedness due to such holders of
Senior Indebtedness in full in accordance with its terms (whether or not such
Senior Indebtedness is due and owing), after giving effect to any concurrent
payment or distribution to or for the holders of such Senior Indebtedness.

            (h) After all Senior Indebtedness indefeasibly is paid in full and
until the obligations under the Note are paid in full, the Holder shall be
subrogated to the rights of holders of Senior Indebtedness to the extent that
distributions otherwise payable to the Holder have been applied to the payment
of Senior Indebtedness. For purposes of such subrogation, no payments or

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distributions to holders of such Senior Indebtedness of any cash, property or
securities to which the Holder would be entitled except for the provisions of
this Section and no payment over pursuant to the provisions of this Section to
holders of such Senior Indebtedness by the Holder, shall, as between the
Company, its creditors other than holders of such Senior Indebtedness, and the
Holder, be deemed to be a payment by the Company to or on account of such Senior
Indebtedness, it being understood that the provisions of this Section are solely
for the purpose of defining the relative rights of the holders of such Senior
Indebtedness, on the one hand and the Holder, on the other hand.

            (i) In any insolvency, receivership, bankruptcy, dissolution,
liquidation or reorganization proceeding, or in any other proceeding, whether
voluntary or involuntary, by or against the Company under any bankruptcy or
insolvency law or laws relating to relief of debtors, to compositions,
extensions or readjustments of indebtedness:

                  (i) the claims of any holders of Senior Indebtedness against
the Company shall be paid indefeasibly in full in cash or such payment shall
have been provided for in a manner acceptable to the holders of at least a
majority of the then outstanding principal amount of the Senior Indebtedness
before any payment is made to the Holder;

                  (ii) until all Senior Indebtedness is indefeasibly paid in
full in cash or such payment shall have been provided for in a manner acceptable
to the holders of at least a majority of the then outstanding principal amount
of the Senior Indebtedness before any payment is made to the Holder, any
distribution to which the Holder would be entitled but for this Section shall be
made to holders of Senior Indebtedness, except for distribution of securities
issued by the Company which are subordinate and junior in right of payment to
the Senior Indebtedness; and

                  (iii) the holders of Senior Indebtedness shall have the right
to enforce, collect and receive every such payment or distribution and give
acquittance therefor. If, in or as a result of any action case or proceeding
under Title 11 of the United States Code, as amended from time to time, or any
comparable statute, relating to the Company, the holders of the Senior
Indebtedness return, refund or repay to the Company, or any trustee or committee
appointed in such case or proceeding receive any payment or proceeds of any
collateral in connection with such action, case or proceeding alleging that the
receipt of such payments or proceeds by the holders of the Senior Indebtedness
was a transfer voidable under state or federal law, then the holders of the
Senior Indebtedness shall not be deemed ever to have received such payments or
proceeds for purposes of this Note in determining whether and when all Senior
Indebtedness has been paid in full and the Company shall pay or cause to be
paid, and the Holder shall be entitled to receive any such funds, proceeds or
collateral to satisfy all amounts due hereunder.. In the event the holders of
Senior Indebtedness receive amounts in excess of payment in full (cash) of
amounts outstanding in respect of Senior Indebtedness (without giving effect to
whether claims in respect of the Senior Indebtedness are allowed in any
insolvency proceeding), the holders of Senior Indebtedness shall pay such excess
amounts to the Holder.

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            (k) By its acceptance of this Note, the Holder agrees to execute and
deliver such documents as may be reasonably requested from time to time by the
Company or the holder of any Senior Indebtedness in order to implement the
foregoing provisions of this Section.

      2. Events of Default. If any of the events specified in this Section shall
occur (herein individually referred to as an "Event of Default"), the Holder
may, so long as such condition exists, in addition to any other right, power or
remedy granted to the Holder under this Note, the Stock Purchase Agreement, the
Security Agreement (as hereinafter defined), or applicable law, either by suit
in equity or by action at law, or both, declare the entire principal amount (and
accrued interest thereon) and all other amounts immediately due and payable,
without presentment, demand or notice of any kind, all of which are expressly
waived, provided, however, that upon the occurrence of any Event of Default
described in Section 2(c) or 2(d) hereof, the entire principal amount (and
accrued interest thereon) and all other amounts shall automatically become due
and payable:

            (a) Payment of any portion of the principal of this Note or interest
accrued thereon shall be delinquent for a period of 10 days or more after the
due date thereof;

            (b) If the Company shall fail to observe any covenant or other
provision contained in this Note (other than with respect to payment), the Stock
Purchase Agreement or the Security Agreement and such failure of observance
shall be continuing for 10 days after the Holder has given written notice
thereof;

            (c) The institution by the Company of proceedings to be adjudicated
as bankrupt or insolvent, or the consent by it to institution of bankruptcy or
insolvency proceedings against it or the filing by it of a petition or answer or
consent seeking reorganization or release under the federal Bankruptcy Act, or
any other applicable federal or state law, or the consent by it to the filing of
any such petition or the appointment of a receiver, liquidator, assignee,
trustee or other similar official of the Company, or of any substantial part of
its property, or the making by it of an assignment for the benefit of creditors,
or the taking of corporate action by the Company in furtherance of any such
action;

            (d) If, within 45 days after the commencement of an action against
the Company (and service of process in connection therewith on the Company)
seeking any bankruptcy, insolvency, reorganization, liquidation, dissolution or
similar relief under any present or future statute, law or regulation, such
action shall not have been resolved in favor of the Company or all orders or
proceedings thereunder affecting the operations or the business of the Company
stayed, or if the stay of any such order or proceeding shall thereafter be set
aside, or if there is appointed without the consent or acquiescence of the
Company of any trustee, receiver or liquidator of the Company or of all or any
substantial part of the properties of the Company, such appointment shall not
have been vacated;

            (e) Any declared default of the Company under any Senior
Indebtedness whether now existing or hereafter created that gives the holder
thereof the right to accelerate such Senior Indebtedness, and such Senior
Indebtedness is in fact accelerated by the holder.

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            (f) One or more judgments for the payment of money in an amount in
excess of $100,000 in the aggregate shall be rendered against the Company or any
of its subsidiaries (or any combination thereof) and shall remain undischarged
for a period of ten consecutive days during which execution shall not be
effectively stayed, or any action is legally taken by a judgment creditor to
levy upon any such judgment; or

            (g) Any representation or warranty made by the Company in the
Security Agreement or any other agreement between the Company and Holder is
false or incorrect in any material respect when made.

      4. Miscellaneous.

            (a) Waiver and Amendment. The rights and remedies herein reserved to
any party shall be cumulative and in addition to any other or further rights and
remedies available at law or in equity. The waiver by any party hereto of any
breach of any provision of this Note shall not be deemed to be a waiver of the
breach of any other provision or any subsequent breach of the same provision.
This Note and its terms may be changed, waived or amended only by the written
consent of the Company and the Holder and, if any such change, waiver, or
amendment is with respect to the subordination provisions, the holders of at
least a majority in the then-outstanding principal amount of the Senior
Indebtedness.

            (b) Governing Law. This Note shall be governed by and construed in
accordance with the law of the State of New York without regard to conflict of
law provisions. Any legal suit, action or proceeding arising out of or based
upon this Note shall be instituted in any federal or state court only in the
County of Suffolk, State of New York. The aforementioned choice of venue is
intended to be mandatory and not permissive in nature, thereby precluding the
possibility of litigation arising out of this Note in any jurisdiction other
than that specified in this Section. The Holder and the Company each waive, to
the fullest extent permitted by applicable law, any right it may have to assert
the doctrine of forum non conveniens or similar doctrine or to object to venue
with respect to any proceeding brought in accordance with this Section, and
stipulates that the state and federal courts located in the City and County of
New York, State of New York, shall have in personam jurisdiction and venue over
them for the purpose of litigation any dispute, controversy or proceeding
arising out of or related to this Note.

            (c) Successors and Assigns. All of the terms and provisions of this
Note shall be binding upon and inure to the benefit of the parties hereto and
their respective successors, heirs and permitted assigns.

            (d) Headings. The section headings contained in this Note are
intended solely for convenience of reference and do not themselves constitute a
part of this Note.

            (e) Severability. In case any provision contained herein (or part
thereof) shall for any reason be held to be invalid, illegal, or unenforceable
in any respect, such invalidity, illegality, or other unenforceability shall not
affect any other provision (or the remaining part of the affected provision)
hereof; but this Note shall be construed as if such invalid, illegal, or
unenforceable provision (or part thereof) had never been contained herein, but
only to the extent that such provision is invalid, illegal, or unenforceable.

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            (f) Costs of Collection. The Company shall reimburse Holder for all
reasonable costs and expenses, including without limitation, reasonable
attorneys' fees and expenses, incurred in connection with (i) drafting,
negotiating, executing and delivering any amendment, modification or waiver of,
or consent with respect to, any matter relating to the rights of Holder
hereunder; (ii) creating, perfecting and maintaining perfection of the Liens (as
defined in the Security Agreement) and security interests in the Collateral (as
defined in the Security Agreement) in favor of the Holder and (iii) enforcing
any provisions of this Note or the Security Agreement and/or collecting any
amounts due under this Note.

            (g) Notices. All notices, requests, demands or other communications
which are required to be or may be given or permitted hereunder shall be in
writing and shall be deemed to have been duly given when delivered in person or
after dispatch by a recognized overnight courier to the appropriate party to
whom the same is so given or made:

                     To Holder at:        John Gantt
                                          Lugenia Gantt
                                          183 Montecito Crescent
                                          Melville, New York 11747

                     with a copy to:      Ruskin Moscou Faltischek, P.C.
                                          1425 Rexcorp Plaza
                                          East Tower, 15th Floor
                                          Uniondale, New York 11556
                                          Attention:  Adam P. Silvers, Esq.

                     To Company at:       Air Industries Group, Inc.
                                          1479 North Clinton Avenue
                                          Bay Shore, NY 11706

or to such other address as a party has designated by notice in writing to the
other party in the manner provided by this Section. All such notices, requests,
demands or other communications shall be deemed to have been received on the
date of delivery thereof (if delivered by hand) and on the next day after
sending thereof (if by overnight courier).

            (h) Assignment by the Company. Neither this Note nor any of the
rights, interests or obligations hereunder may be assigned, by operation of law
or otherwise, in whole or in part, by the Company, without the prior written
consent of the Holder.

            (i) No Set-Off. All payments by the Company under this Note shall be
made free and clear of and without any deduction for or on account of any
set-off or counterclaim.

            (j) Waiver of Presentment, Demand, Etc. To the fullest extent
permitted by applicable law, the Company expressly waives presentment, demand,
protest, notice of dishonor, notice of non-payment, notice of maturity, notice
of protest, presentment for the purpose of accelerating maturity of the
obligations under this Note, diligence in collection, and the benefit of any
exemption or insolvency laws.

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            (k) Senior Lenders. For so long as any amount shall be outstanding
hereunder, upon request of a Holder the Company shall promptly advise the Holder
of the identity of the holders of the Senior Indebtedness and of the amount,
principal and interest, due each such lender.

            (l) Blockage Event. Within ten days of the occurrence thereof, the
Company shall advise each Holder of the occurrence of a Blockage Event and of
the termination of a Blockage Event.

      IN WITNESS WHEREOF, the Company has caused this Note to be duly executed
and issued as of the date first written above.

                                                 AIR INDUSTRIES GROUP, INC.

                                                 By: /s/ Peter D. Rettaliata
                                                     ---------------------------
                                                 Name: Peter D. Rettaliata
                                                 Title: CEO and President

                                       8Exhibit 10.2

                              CONSULTING AGREEMENT

      THIS CONSULTING AGREEMENT (the "Agreement"), dated as of the 24th day of
August, 2007, by and between Welding Metallurgy Inc., a New York corporation
with an address c/o Air Industries Group, Inc., 1479 Clinton Avenue, Bay Shore,
New York, 11706 ("WMI" or the "Company") and Gantt Associates LTD, a New York
corporation having an office at 31 & 31A Lamar Streeet, West Babylon, New York
("Gantt Associates") and John Gantt, an individual having an address at 183
Montecito Crescent Melville, New York (the "Consultant"). WMI, Gantt Associates
and the Consultant are hereinafter sometimes individually referred to as a
"Party" and jointly as the "Parties."

                                    RECITALS:

      WHEREAS, WMI desires that Gantt Associates make the services of the
Consultant available to serve as a consultant and the Consultant desires to
serve WMI in such capacity on the terms and conditions set forth herein;

      NOW, THEREFORE, in consideration of the mutual covenants and agreements
herein contained, the Parties hereto, intending to be legally bound, agree as
follows:

      1. Engagement. WMI hereby engages Gantt Associates to make the Consultant
available to serve as a consultant and the Consultant agrees to serve in such
capacity. During the Term (as hereinafter defined), Consultant shall report
directly to WMI's President, or to such person(s) as may be directed by WMI's
President, and shall discharge to the best of his abilities all duties and
responsibilities as may be reasonably assigned to him from time to time. During
the Term, the Consultant shall be required to devote no more than twenty (20)
hours of work per week, it being further agreed that when practicable, the
Company shall allow the Consultant to provide his services by telephonic
communication.

      2. Term. The initial term of the engagement under this Agreement shall be
for a period of approximately three months commencing on the date hereof and
ending on November 24, 2007 (the "Initial Term"). Upon expiration of the Initial
Term, the engagement under this Agreement shall continue for an additional three
month period unless either Gantt Associates or the Company gives written notice
to the other no later than November 1, 2007, of his or its determination to
allow this Agreement to expire as of the end of the Initial Term. The engagement
under this Agreement shall terminate immediately upon the death of the
Consultant or upon the onset of any disability which prevents the Consultant
from rendering services to WMI. The period during which Gantt Associates is
engaged by WMI is referred to as the "Term."

      3. Compensation. The compensation for the services to be provided to WMI
hereunder during the Term shall be Thirty Thousand Dollars ($30,000.00) per
month, payable to Gantt Associates in accordance with WMI's regular payroll
practices, but no less frequently than twice a month and no later than the end
of the month during which services are rendered. If the first or the last month
of the Term begins or ends other than on the first or last day of a calendar
month the amount due Gantt Associates for services rendered during such month
shall be pro-rated based upon the number of days in such month during which the
Consultant is engaged by WMI.

<PAGE>

            In addition to the foregoing, WMI shall promptly reimburse Gantt
Associates for all expenses incurred by it in
the performance of its duties hereunder, including, without limitation, those
incurred for business travel, provided that without the prior consent of the
President of WMI Consultant shall not incur more than $2,000 of expenses in any
month and further provided that Gantt Associates provides the Company with such
receipts or other evidence of its expenses as are required by the Company's
policies.

      4. Nonsolicitation of Customers and Employees. At all times during the
Term and for a period of five (5) years from the date hereof, (a) the Consultant
shall not, directly or indirectly, for himself or on behalf of or in conjunction
with any other person, solicit or attempt to solicit the business or patronage
of any customer of the Company on behalf of a business which provides products
or services competitive with those of WMI, nor shall Consultant interfere with
the business relationship of WMI with any customer of WMI, and (b) the
Consultant shall whether individually, as a director, manager, member,
stockholder, partner, owner, employee, consultant or agent of any business, or
in any other capacity, directly or indirectly, employ, solicit, disturb, entice
away, or in any other manner persuade any employee of WMI or its affiliated
entities (the "Corporation") to discontinue or alter his or her relationship
with the Corporation.

      5. Noncompetition. At all times during the Term and for a period of five
(5) years from the date hereof, the Consultant whether individually, as a
director, manager, member, stockholder, partner, owner, employee, consultant or
agent of any business, or in any other capacity, shall not engage, directly or
indirectly through any other person, in any business, enterprise or employment
which competes with the business of the Corporation as conducted on the date
hereof. The Consultant acknowledges and agrees that the business of the
Corporation is of a worldwide nature and that any geographic limitation on the
foregoing covenant would be ineffective to adequately protect the interests of
the Corporation. The Consultant further acknowledges and agrees that the
foregoing covenant is an integral part of his agreement to be engaged hereunder,
is fair and reasonable in light of all of the facts and circumstances of the
relationship between the Consultant, WMI and the Corporation. In the event any
court of competent jurisdiction determines that, notwithstanding the foregoing
acknowledgments, the scope of the restricted activities of the foregoing
covenant is excessive or not enforceable, or that the foregoing covenant is not
enforceable unless it is subject to a geographic limitation, this Agreement
shall be deemed amended to reflect the maximum restrictions on activities and
geographic scope allowable pursuant to such court's determination.

      WMI acknowledges that Consultant is a certified welding inspector and that
nothing contained herein shall be deemed to prevent him from acting as a welding
inspector for any entity not engaged in a business competitive with that of the
Company or, in any event for any of Northrop Grumman, Boeing Corp., Lockheed
Martin, Senior Flexonic and Sandia Laboratories. Further, Consultant shall be
permitted to perform welding inspection services for businesses competitive with

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<PAGE>

the Company so long as Consultant provides no other services to any such entity
and upon request of WMI advises such entity of the restrictions contained
herein. To the extent that there is an inconsistency or ambiguity between this
section and Section 7.1 of that certain Stock Purchase Agreement dated as of
March 9, 2007 by and between Air Industries Group, Inc. ("Air Industries"),
formerly, Gales Industries Incorporated, and John Gantt and Lugenia Gantt, the
terms of this Agreement shall govern.

      6. Promissory Note. The Parties and the Consultant agree that the
covenants contained in Sections 4 and 5 of this Agreement shall terminate in the
event of a default by Air Industries Group, Inc. under that certain Subordinated
Promissory Note pursuant to which Air Industries has agreed to pay to the
Consultant and Lugenia Gantt or their assigns, the principal sum of Two Million
Dollars ($2,000,000.00).

      7. Protection of Confidential Information. Consultant acknowledges that he
has been and will be provided with information about, and his engagement by WMI
will, throughout the Term, bring him into close contact with, many confidential
affairs of the Corporation, including proprietary information about the business
of the Corporation for example, but not by way of limitation, costs, finances,
internal financial statements, projections, markets, sales, customers, vendors,
products, key personnel, operational methods, formulas, methods of production,
technical processes and methods, plans for future developments, software, data
bases, computer programs, specifications, documentation, designs, trade secrets,
technology, know-how, research and development, inventions, patents and
copyrights (and any renewals, reissues, extensions, divisions, continuations and
continuations in part thereof and registrations, applications, patents of
addition and inventors certificates) and other information not available to the
public (collectively "Confidential Information"), all of which are highly
confidential and proprietary and all of which were or will be developed or
acquired by the Corporation great effort and expense. Consultant further
acknowledges that the services to be performed by him under this Agreement are
of a special unique, unusual, extraordinary and intellectual character and that
the nature of the relationship of Consultant with the Corporation is such that
Consultant is capable of competing with the Corporation. In recognition of the
foregoing, Consultant agrees that during the Term and thereafter he will:

            (a) keep secret all Confidential Information of the Corporation and
      not disclose the same to anyone outside of the Corporation except in
      furtherance of WMI's affairs or with WMI's prior written consent;

            (b) not make use of any of such Confidential Information for his own
      purposes or the benefit of anyone other than the Corporation, provided,
      however, that the restrictions contained in clauses (a) and (b) shall not
      apply at any time to Confidential Information which is then in the public
      domain (provided the Consultant was not responsible directly or indirectly
      for the fact that such secrets or information have entered the public
      domain without WMI's consent), and that these restrictions shall not apply
      to Confidential Information that is required to be disclosed by law, by
      subpoena or by any government, regulatory or self regulatory body,
      provided the Consultant uses reasonable efforts to advise WMI of the
      prospective disclosure of Confidential Information and discloses only such
      Confidential Information which counsel advises needs to be disclosed; and

                                       3
<PAGE>

            (c) deliver promptly to WMI on termination of this Agreement, or at
      any time WMI may so request, all Confidential Information, including but
      not limited to memoranda, notes, records, computer software discs, reports
      and other confidential documents (and all copies thereof) relating to the
      business and affairs of the Corporation, that he may then possess or have
      under his control, except that he may retain personal notes, notebooks,
      journals and diaries provided that such materials do not contain
      Confidential Information.

      8. Property Rights and Inventions. All rights in and to all data,
information, reports, inventions, know-how, improvements, designs, devices,
apparatus, practices, processes, methods or products, whether patentable or not,
which are made, developed, perfected, devised, conceived or first reduced to
practice by Consultant either solely or jointly with others, derived in whole or
in part from Confidential Information (the "Inventions") (i) shall be and remain
the sole and exclusive property of WMI, (ii) shall be considered trade secrets
of WMI subject to the confidential requirement herein, and (iii) shall remain
free of any claim of Consultant or any person deriving any rights or interest
from Consultant.

      9. Specific Remedies. It is understood by the Consultant that the
covenants contained in Sections 4, 5, 6 and 7 are essential elements of this
Agreement and that, but for the agreement of the Consultant to comply with such
covenants, WMI would not have agreed to enter into this Agreement. The
Consultant acknowledges that the Corporation may have no adequate remedy at law
if he violates any of the terms of Sections 4, 5, 6 or 7. The Consultant
therefore understands and agrees that the Corporation shall have, without
prejudice as to any other remedies, the right upon application to any court of
proper jurisdiction and without posting of any bond or other security
whatsoever, to a temporary restraining order, preliminary injunction,
injunction, specific performance or other equitable relief, it being
acknowledged and agreed that any such breach will cause irreparable injury to
the Corporation and that money damages will not provide an adequate remedy to
the Corporation.

      10. Independent Contractor. This Agreement does not create an
employer/employee relationship between the Consultant and WMI. The Consultant
agrees that he renders all services hereunder as an independent contractor and
not as an employee or agent of WMI. The Consultant also agrees that he shall not
have any rights to receive any employee benefits, such as health and accident
insurance, sick leave or vacation as are in effect generally for employees of
WMI. The Consultant will not enter into any agreements or incur obligations on
behalf of WMI nor commit WMI in any other manner without prior written consent
from a duly authorized officer or representative of WMI.

      11. Conflicts of Interests. Gantt Associates represents and warrants that
it has the full power and right to enter into this Agreement and that there are
no outstanding agreements, assignments, licenses, encumbrances or rights in
other parties, private or public, which might interfere with, or preclude the
carrying out of, the obligations under this Agreement.

      12. Successors; Binding Effect; Third Party Beneficiaries. WMI may assign
this Agreement in whole or in part without the Consultant's consent. No
assignment shall enlarge or expand the scope of the Consultant's services
hereunder without the prior written consent of the Consultant.

                                       4
<PAGE>

            This Agreement is personal to Gantt Associates and the Consultant
and, without the prior written consent of WMI, shall not be assignable by Gantt
Associates or the Consultant. Air Industries and its subsidiaries shall each be
deemed third party beneficiaries of this Agreement with the right to enforce the
provisions of Sections 4,5,6 and 7 hereof. Except for the foregoing, this
Agreement shall not create any rights in favor of any party other than the
parties hereto or their respective successors and assigns.

      13. Law Governing; Jurisdiction. This Agreement shall be governed by and
construed in accordance with the laws of the State of New York (without giving
effect to the principles of conflicts of law). The Parties agree that the
federal or state courts located in the State of New York shall have exclusive
jurisdiction in connection with any dispute arising out of this Agreement. Any
litigation proceeding under this Agreement shall be confidential in nature to
the fullest extent permitted by applicable law.

      14. Severability. If any provision of this Agreement, or any part of any
of them, is hereafter construed or adjudicated to be invalid or unenforceable,
the same shall not affect the remainder of the covenants or rights or remedies
which shall be given full effect without regard to the invalid portions provided
that as so construed each of the parties receives substantially all of the
benefits and remains subject to all of the burdens contemplated hereby. If any
of the covenants set forth herein is held to be invalid or unenforceable because
of the duration of such provision or the area covered thereby, the parties agree
that the court making such determination shall have the power to reduce the
duration and/or area of such provision and in its reduced form said provision
shall then be enforceable.

      15. Headings. The headings of this Agreement are for convenience of
reference only and shall not affect in any manner any of the terms and
conditions hereof.

      16. Counterparts. This Agreement may be executed in two or more
counterparts, each of which shall be deemed an original and all of which
together shall constitute one and the same agreement.

      17. Modifications and Waivers. No term, provision or condition of this
Agreement may be modified or discharged unless such modification or discharge is
agreed to in writing and signed by each of the Parties hereto. No waiver by
either Party hereto of any breach by the other party hereto of any term,
provision or condition of this Agreement to be performed by such other party
shall be deemed a waiver of similar or dissimilar provisions or conditions at
the same or at any prior or subsequent time.

      18. Entire Agreement. This Agreement constitutes the entire agreement
between the Parties with respect to the subject matter herein and supersedes all
prior agreements, negotiations and discussions between the parties hereto, there
being no extraneous agreements. This Agreement may be amended only in writing
executed by the parties hereto affected by such amendment.

                                       5
<PAGE>

      19. Notices. Any notice or other written communications required or
permitted to be given or made under this Agreement shall be given or made by
either Party to the other in writing and shall be delivered by personal service
or first class mail, postage prepaid, or overnight courier addressed to a Party
at the address set forth above or at such other address as one Party may give
notice of to the other Party. Notices or written communications shall be deemed
to have been sufficiently given or made: (i) if by personal service, when
performed; (ii) if mailed, three (3) days after being deposited in the mail,
postage prepaid; or (iii) if by overnight courier, one (1) day after delivery to
the overnight courier company.

      IN WITNESS WHEREOF, the Parties hereto have executed this Agreement on the
day and year first set forth above.

                                               WELDING METTALURGY INC.

                                               By: /s/ Peter D. Rettaliata
                                                   ---------------------------
                                               Name: Peter D. Rettaliata
                                               Title: President

                                               GANTT ASSOCIATES LTD

                                               By: /s/ John Gantt
                                                   ---------------------------
                                               Name: John Gantt
                                               Title: President

                                               By: /s/ John Gantt
                                                   ---------------------------
                                               JOHN GANTT

                                       6

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