Document:

<PAGE>

                                                                    Exhibit 10.3

                                   AGREEMENT

                                    Between

                  KREISLER INDUSTRIAL CORPORATION, A DIVISION
                     OF KREISLER MANUFACTURING CORPORATION

                                    - AND -

                   LOCAL 377, RWDSU, AFFILIATED WITH AFL-CIO

                      December 5, 2000 - December 4, 2003
<PAGE>

                                     INDEX

<TABLE>
<CAPTION>
                                              Article               Page
                                              -------               ----
<S>                                           <C>                   <C>
DEPARTMENTAL SUPERVISORS                         XII                 14

DISCHARGE                                         XI                 13

GRIEVANCE PROCEDURE                              XIV                 15

HOLIDAY PAY                                        V                  6

HOSPITALIZATION AND INSURANCE                   XIII                 14

HOURS OF WORK                                    III                  3

INTERFERENCE, DISCRIMINATION, COERCION            XV                 16

LAYOFFS                                         VIII                 10

LEAVE OF ABSENCE                                   X                 11

MANAGEMENT RIGHTS                                                     1

MISCELLANEOUS                                   XVII                 16

NO STRIKES, LOCKOUTS                             XVI                 16

RATE OF PAY                                       IV                  4

RECOGNITION                                        I                  2

SECURITY                                        XVIII                17

SENIORITY                                         VII                 8

TERM OF AGREEMENT                                 XIX                17

TRANSFERS                                          IX                10

UNION MEMBERSHIP DUES DEDUCTION                    II                 2

VACATION PAY                                       VI                 7

WAGE RATES                                                          19-27
</TABLE>

                                      -i-
<PAGE>

                                UNION AGREEMENT
                                ---------------

     AGREEMENT entered into this ____ day of __________, 2001, as of December 5,
2000, between KREISLER INDUSTRIAL CORPORATION, A Division of KREISLER
MANUFACTURING CORPORATION, for the plant located at 180 Van Riper Avenue,
Elmwood Park, State of New Jersey, hereinafter known as the "Employer," and
LOCAL 377, RWDSU, affiliated with AFL-CIO, located at 29-27 41st Avenue, Long
Island City, New York 11101, hereinafter known as the "Union," and on behalf of
said Union and on behalf of the covered employees of the Union now employed and
hereafter to be employed by the Company at its Elmwood Park, New Jersey plant.

                                   PREAMBLE
                                   --------

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

     NOW, THEREFORE, it is agreed:

                               MANAGEMENT RIGHTS
                               -----------------

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

                                      -1-
<PAGE>

                                   ARTICLE I
                                   ---------

                                  RECOGNITION
                                  -----------

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

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

                                  ARTICLE II
                                  ----------

                      UNION MEMBERSHIP AND DUES DEDUCTION
                      -----------------------------------

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

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

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

                                      -2-
<PAGE>

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

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

                                  ARTICLE III
                                  -----------

                                 HOURS OF WORK
                                 -------------

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

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

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

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

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

                                      -3-
<PAGE>

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

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

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

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

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

                                  ARTICLE IV
                                  ----------

                                  RATE OF PAY
                                  -----------

     Section 1.  The Employer agrees to grant an increase of $0.50 per hour
effective 5 December 2000, to all regular employees, members of the bargaining
unit in its employ and on the payroll as of 5 December 2000; and an additional
increase of $0.45 per hour effective 5 December 2001 to all Union employees in
its employ and on the payroll on 5 December 2001; and an additional increase of
$0.45 per hour effective on 5 December, 2002 to all Union employees in its
employ and on the payroll on 5 December 2002.

                                      -4-
<PAGE>

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

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

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

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

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

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

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

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

                                      -5-
<PAGE>

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

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

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

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

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

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

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

                                   ARTICLE V
                                   ---------

                                  HOLIDAY PAY
                                  -----------

     Section 1.  The following shall be deemed legal holidays:

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

                                      -6-
<PAGE>

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

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

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

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

                                  ARTICLE VI
                                  ----------
                                 VACATION PAY
                                 ------------

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

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

                                      -7-
<PAGE>

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

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

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

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

     Section 3.  Vacation shall be scheduled at the convenience of the Employer
some time during June, July or August. Vacation pay shall be distributed in
advance. Employees entitled to three (3) or four (4) weeks vacation pay may take
their third and/or fourth week of vacation at any time during the calendar year
provided, however, such scheduling shall be done at the discretion of management
in order not to interfere with the efficient operation of the plant. If two (2)
employees select the came vacation time and if management is willing to permit
only one (1) employee to take vacation at that time, seniority shall prevail.
Vacation shut-down dates will be posted on the bulletin board by June 15th of
each year.

                                  ARTICLE VII
                                  -----------

                                   SENIORITY
                                   ---------

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

                                      -8-
<PAGE>

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

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

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

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

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

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

                 (a)  Quits voluntarily,

                 (b)  is discharged,

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

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

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

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

                 (b)  The Shop Chairperson shall have top seniority in the
plant.
                 (c)  The Union Steward shall have top seniority in the section
in which the Steward is employed.

                 (d)  There shall be at least one (1) Union Steward in the plant
at all times when eight (8) or more Union workers are working, excluding the
Maintenance Department.

                                      -9-
<PAGE>

                                 ARTICLE VIII
                                 ------------

                                    LAYOFFS
                                    -------

     Section 1.  The Employer agrees to notify the Shop Chairperson twenty-four
(24) hours in advance when a layoff for a period of more than one (1) week is
contemplated by the Employer; failing which the employee concerned shall be
given one (1) day's pay at his straight time hourly rate.

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

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

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

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

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

                                  ARTICLE IX
                                  ----------

                                   TRANSFERS
                                   ---------

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

                                     -10-
<PAGE>

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

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

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

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

                                   ARTICLE X
                                   ---------

                               LEAVE OF ABSENCE
                               ----------------

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

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

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

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

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

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

                                     -11-
<PAGE>

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

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

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

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

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

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

     Section 3.  In the event that any regular employee shall enter into or be
drafted into the armed forces of the United States, it is agreed that they shall
be granted a leave of absence for the duration of their service, and it is
further agreed that such employee shall, at the conclusion of the period of
service, provided they are physically equipped to perform their duties, and
provided that they apply within sixty (60) days after their discharge, be re-
employed without loss of seniority or other rights and be reinstated to their
former position or one equivalent to it as a regular employee at the then
prevailing rate of wages for such position. It is further understood and agreed
that any new employee who is engaged to take the place of an employee who
entered the armed forces of the United States may be discharged upon the
rehiring of the former employee.

                                     -12-
<PAGE>

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

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

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

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

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

                                  ARTICLE XI
                                  ----------

                                   DISCHARGE
                                   ---------

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

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

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

                                     -13-
<PAGE>

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

                                  ARTICLE XII
                                  -----------

                           DEPARTMENTAL SUPERVISORS
                           ------------------------

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

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

                                 ARTICLE XIII
                                 ------------

                         HOSPITALIZATION AND INSURANCE
                         -----------------------------

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

                 (b)  The Employer agrees to pay $260.00 per month beginning 5
December 2000 for each employee for the entire term of this Agreement, i.e.,
three (3) years, December 5, 2000 to December 4, 2003.

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

                                     -14-
<PAGE>

                                  ARTICLE XIV
                                  -----------

                              GRIEVANCE PROCEDURE
                              -------------------

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

     The arbitrator may provide for reinstatement of any discharged employee,
either with or without pay as the arbitrator may determine, or may sustain a
discharge, or may otherwise determine any other question referred to him. In the
event of any back pay award, there shall be deducted from the same any employee
earnings elsewhere, as determined in accordance with National Labor Relations
Board standards.

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

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

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

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

                                     -15-
<PAGE>

                                  ARTICLE XV
                                  ----------

                    INTERFERENCE, DISCRIMINATION, COERCION
                    --------------------------------------

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

                                  ARTICLE XVI
                                  -----------

                             NO STRIKES, LOCKOUTS
                             --------------------

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

                                 ARTICLE XVII
                                 ------------

                                 MISCELLANEOUS
                                 -------------

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

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

                                     -16-
<PAGE>

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

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

                                 ARTICLE XVIII
                                 -------------

                                   SECURITY
                                   --------

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

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

                                  ARTICLE XIX
                                  -----------

                               TERM OF AGREEMENT
                               ------------------

     THIS AGREEMENT shall remain in full force and effect and shall be binding
 upon the parties and successors until midnight, 4 December 2003, and shall be
 considered automatically renewed from year to year thereafter unless at least
 sixty (60) days prior to the end of any effective period either party shall
 serve written notice upon the other by registered mail that it desires to
 modify or terminate this Agreement.

                                     -17-
<PAGE>

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

KREISLER INDUSTRIAL CORPORATION               LOCAL 377, RWDSU, AFL-CIO

    /s/ Ned Stern                               /s/ Daniel Gough
-------------------------------               --------------------------
                                              Sec. Treasurer

                                              --------------------------
                                              Recording Secretary

                                              COMMITTEE:

                                                 /s/ Alan Cruz
                                              --------------------------
                                                 /s/ Jozsef Cseuscsik
                                              --------------------------
                                                 /s/ James L. Gray
                                              --------------------------

                                              __________________________

                                              __________________________

                                     -18-
<PAGE>

                           EFFECTIVE 5 DECEMBER 2000
                           -------------------------

                                  SCHEDULE I
                                  ----------

                                LABOR GRADE "B"
                                ---------------

     Minimum $5.15 per hour with an increase of $.05 per hour after thirty (30)
days and automatic increases of $.10 per hour every four (4) months until
reaching maximum rate of $13.00 per hour.

          The following jobs are in "B" Classification:

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

          Solder Remover
          Pressure & Flow Tester
          Induction Brazer
          Identification
          Moveman
          Shipping/Receiving Clerk
          Porter
          Furnace Assembler
          Cap and Wrap

                                LABOR GRADE "C"
                                ---------------

     Minimum $5.25 per hour with an increase of $.05 per hour after thirty (30)
days and automatic increases of $.10 per hour every four (4) months until
reaching maximum rate of $13.10 per hour.

          The following jobs are in "C" Classification:

          Chemical Cleaner
          DeBurrer
          Tube Bender
          Final Assembly Inspector

                                LABOR GRADE "D"
                                ---------------

     Minimum $5.40 per hour with an increase of $.05 per hour after thirty (30)
days and automatic increases of $.10 per hour every four (4) months until
reaching maximum rate of $13.25 per hour.

     The following jobs are in "D" Classification:

          Adjustor
          Torch Brazer
          Fluorescent Penetrant Operate & Set-up
          Plater

                                     -19-
<PAGE>

                                LABOR GRADE "E"
                                ---------------

     Minimum $5.65 per hour with an increase of $.05 per hour after thirty (30)
days and automatic increases of $.10 per hour every four (4) months until
reaching maximum rate of $13.50 per hour.

          The following jobs are in "E" Classification:

          Machinist - 2nd Class
          Vendor's Inspector
          Leadman
          Truck Driver
          X-Ray Technician
          Process Inspector
          Ultrasonic Technician

                                LABOR GRADE "F"
                                ---------------

     Minimum $5.90 per hour with an increase of $.05 per hour after thirty (30)
days and automatic increases of $.10 per hour every four (4) months until
reaching maximum rate of $14.00 per hour.

          The following jobs are in "F" Classification:

          Furnace Operator
          General Maintenance Man
          X-Ray Reader
          Set-Up Man

                                LABOR GRADE "G"
                                ---------------

     Minimum $6.15 per hour with an increase of $.05 per hour after thirty (30)
days and automatic increases of $.10 per hour every four (4) months until
reaching maximum rate of $14.25 per hour.

          The following jobs are in "G" Classification:

          CNC Machine Set-Up
          Machinist 1st Class
          Experimental Machinist
          Turret Lathe Set-Up and Operator

                                     -20-
<PAGE>

                                LABOR GRADE "H"
                                ---------------

     Minimum $6.40 per hour with an increase of $.05 per hour after thirty (30)
days and automatic increases of $.10 per hour every four (4) months until
reaching maximum rate of $14.75 per hour.

          The following jobs are in "H" Classification:

          Tool and Die Maker
          Toolmaker
          Layout Inspector
          Welder

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

                                     -21-
<PAGE>

                           EFFECTIVE 5 DECEMBER 2001
                           -------------------------

                                  SCHEDULE I
                                  ----------

                                LABOR GRADE "B"
                                ---------------

     Minimum $5.15 per hour with an increase of $.05 per hour after thirty (30)
days and automatic increases of $.10 per hour every four (4) months until
reaching maximum rate of $13.45 per hour.

          The following jobs are in "B" Classification:

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

          Solder Remover
          Pressure & Flow Tester
          Induction Brazer
          Identification
          Moveman
          Shipping/Receiving Clerk
          Porter
          Furnace Assembler
          Cap and Wrap

                                LABOR GRADE "C"
                                ---------------

     Minimum $5.25 per hour with an increase of $.05 per hour after thirty (30)
days and automatic increases of $.10 per hour every four (4) months until
reaching maximum rate of $13.55 per hour.

          The following jobs are in "C" Classification:

          Chemical Cleaner
          DeBurrer
          Tube Bender
          Final Assembly Inspector

                                LABOR GRADE "D"
                                ---------------

     Minimum $5.40 per hour with an increase of $.05 per hour after thirty (30)
days and automatic increases of $.10 per hour every four (4) months until
reaching maximum rate of $13.70 per hour.

     The following jobs are in "D" Classification:

          Adjustor
          Torch Brazer
          Fluorescent Penetrant Operate & Set-up
          Plater

                                     -22-
<PAGE>

                                LABOR GRADE "E"
                                ---------------

     Minimum $5.65 per hour with an increase of $.05 per hour after thirty (30)
days and automatic increases of $.10 per hour every four (4) months until
reaching maximum rate of $13.95 per hour.

          The following jobs are in "E" Classification:

          Machinist - 2nd Class
          Vendor's Inspector
          Leadman
          Truck Driver
          X-Ray Technician
          Process Inspector
          Ultrasonic Technician

                                LABOR GRADE "F"
                                ---------------

     Minimum $5.90 per hour with an increase of $.05 per hour after thirty (30)
days and automatic increases of $.10 per hour every four (4) months until
reaching maximum rate of $14.45 per hour.

          The following jobs are in "F" Classification:

          Furnace Operator
          General Maintenance Man
          X-Ray Reader
          Set-Up Man

                                LABOR GRADE "G"
                                ---------------

     Minimum $6.15 per hour with an increase of $.05 per hour after thirty (30)
days and automatic increases of $.10 per hour every four (4) months until
reaching maximum rate of $14.70 per hour.

          The following jobs are in "G" Classification:

          CNC Machine Set-Up
          Machinist 1st Class
          Experimental Machinist
          Turret Lathe Set-Up and Operator

                                     -23-
<PAGE>

                               LABOR GRADE "H"
                               ---------------

     Minimum $6.40 per hour with an increase of $.05 per hour after thirty (30)
days and automatic increases of $.10 per hour every four (4) months until
reaching maximum rate of $15.20 per hour.

          The following jobs are in "H" Classification:

          Tool and Die Maker
          Toolmaker
          Layout Inspector
          Welder

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

                                     -24-
<PAGE>

                           EFFECTIVE 5 DECEMBER 2002
                           -------------------------

                                  SCHEDULE I
                                  ----------

                                LABOR GRADE "B"
                                ---------------

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

          The following jobs are in "B" Classification:

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

          Solder Remover
          Pressure & Flow Tester
          Induction Brazer
          Identification
          Moveman
          Shipping/Receiving Clerk
          Porter
          Furnace Assembler
          Cap and Wrap

                               LABOR GRADE "C"
                               ---------------

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

          The following jobs are in "C" Classification:

          Chemical Cleaner
          DeBurrer
          Tube Bender
          Final Assembly Inspector

                                LABOR GRADE "D"
                                ---------------

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

          The following jobs are in "D" Classification:

          Adjustor
          Torch Brazer
          Fluorescent Penetrant Operate & Set-up
          Plater

                                     -25-
<PAGE>

                                LABOR GRADE "E"
                                ---------------

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

          The following jobs are in "E" Classification:

          Machinist - 2nd Class
          Vendor's Inspector
          Leadman
          Truck Driver
          X-Ray Technician
          Process Inspector
          Ultrasonic Technician

                                LABOR GRADE "F"
                                ---------------

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

          The following jobs are in "F" Classification:

          Furnace Operator
          General Maintenance Man
          X-Ray Reader
          Set-Up Man

                                LABOR GRADE "G"
                                ---------------

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

          The following jobs are in "G" Classification:

          CNC Machine Set-Up
          Machinist 1st Class
          Experimental Machinist
          Turret Lathe Set-Up and Operator

                                     -26-
<PAGE>

                                LABOR GRADE "H"
                                ---------------

     Minimum $6.46 per hour with an increase of $.05 per hour after thirty (30)
days and automatic increases of $.10 per hour every four (4) months until
reaching maximum rate of $15.65 per hour.

          The following jobs are in "H" Classification:

          Tool and Die Maker
          Toolmaker
          Layout Inspector
          Welder

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

                                     -27-
<PAGE>

Local 377, RWDSU
29-27 41st Avenue
Long Island City, New York 11101

          Re:  Local 377, RWDSU -and- Kreisler Industrial Corp.
               Labor Agreement:  12/5/2000 - 12/4/2003
               ------------------------------------------------

Dear Sir/Madam:

     In connection with the negotiation of the above-captioned agreement, it is
our understanding we have agreed that the retroactive payment between 12/5/2000
and the actual date of implementation of the first wage increase, will be made
within sixty (60) days of the date of ratification of the contract, i.e.,
1/16/2001. If you are in agreement with this understanding, we would appreciate
your signing a copy of the within letter indicating such agreement.

                                    Very truly yours,

                                    KREISLER INDUSTRIAL CORP.

                                    By: /s/ Ned Stern
                                       --------------------------------

The foregoing arrangement
is hereby agreed to:

_____________________________           DATE:  ________________________
LOCAL 377 RWDSU<PAGE>

                                                                    Exhibit 10.4

                 GUARANTEED FIXED PRICE REMEDIATION AGREEMENT
                 --------------------------------------------

     This Guaranteed Fixed Price Remediation Agreement ("Agreement") is entered
into by and between Resource Control Corporation ("RCC"), a New Jersey
corporation with offices located at P. O. Box 579 Rancocas, New Jersey 08073-
0579 and Kreisler Manufacturing Corporation ("Kreisler"), with offices located
at 180 Van Riper Avenue, Elmwood Park, New Jersey (collectively, the "Parties"),
for professional environmental services, as more specifically set forth in this
Agreement. This Agreement is effective and binding as of the __th day of
_____________, 2001 (the "Effective Date").

                                   RECITALS
                                   --------

     WHEREAS, Kreisler is engaged in the business of manufacturing at a facility
located at 180 Van Riper Avenue, Elmwood Park, New Jersey (the "Facility");

     WHEREAS, Kreisler is a tenant under a lease dated __________ 2000 ("Lease")
with T&T Investment Co. ("Landlord");

     WHEREAS, An environmental assessment of the Site, hereinafter defined, was
conducted which revealed historical discharges of various substances to both
soil and groundwater at the Site as described in the October 27, 1999 Invitation
to Bidders for Fixed Price Bid for Environmental Remediation ("Invitation to
Bidders"); and

                                       1
<PAGE>

     WHEREAS, immediately upon learning of this condition, Kreisler notified the
New Jersey Department of Environmental Protection ("Department") and retained
the services of the Whitman Companies to conduct the required inquiry and
necessary assessment of the Site in accordance with the Department's Technical
Rules for Site Remediation, N.J.A.C. 7:26E-1.1 et seq.; and
                                               -- ----

     WHEREAS, Kreisler desires to remediate the Contamination which exists at or
about the Site in accordance with the regulatory requirements of the Department;
and,
     WHEREAS, Kreisler has agreed in the Lease to remediate the Contamination.
A copy of the Lease is attached hereto and made a part hereof as Exhibit "A".

     WHEREAS, Kreisler desires to retain a qualified, experienced, and competent
professional consultant/engineer/contractor to perform the Work required by the
Department, the Lease Agreement and this Agreement; and,

     WHEREAS, RCC is ready, willing and able to perform the work required by the
Department, the Lease and this Agreement.

     NOW, THEREFORE, in consideration of the mutual promises contained herein,
and other good and valuable consideration, the receipt and adequacy of which is
hereby acknowledged, the Parties agree hereby as follows:

     1.   Definitions
          -----------
     The following Definitions shall apply throughout this Agreement unless
otherwise indicated.

     Agreement means this Agreement, including any Exhibits, and all
     ---------
Modifications.

                                       2
<PAGE>

     Applicable Environmental Laws shall mean any and all existing or future
     -----------------------------
federal, state and local statutes, ordinances, regulations, rules, executive
orders, standards and requirements, including any requirements imposed by common
law, concerning or relating to safety, industrial hygiene and the protection of
health and the environment including, without limitation; (i) the Comprehensive
Environmental Response, Compensation and Liability Act of 1980, as amended, 42
U.S.C. 9601 et. seq. ("CERCLA"); (ii) the Resource Conservation and Recovery Act
            --- ----
of 1976, as amended, 42 U.S.C. 6901 et. seq. ("RCRA"); (iii) the Clean Air Act,
                                    --- ----
as amended, 42 U.S.C. 7901 et. seq.; (iv) the Clean Water Act, amended 33 U.S.C.
                           --- ----
1251 et. seq.; (v) the Hazardous Materials Transportation Act, as amended, 49
     --- ----
U.S.C. 1801 et. seq.; (vi) the New Jersey Industrial Site Recovery Act, formerly
            --- ----
known as the Environmental Cleanup Responsibility Act, as amended, N.J.S.A.
13:1K-6 et. seq. ("ISRA"); (vii) the New Jersey Spill Compensation and Control
        --- ----
Act, as amended N.J.S.A. 58:10-23.11b et. seq. ("Spill Act"); (viii) the New
                                      --- ----
Jersey Underground Storage of Hazardous Substances Act, as amended N.J.S.A.
58:10A-21 et. seq.; (ix) the New Jersey Water Pollution Control Act, as amended
          --- ----
N.J.S.A.  58:10A-1 et. seq.; and (x) the New Jersey Department of Environmental
                   --- ----
Protections Technical Rules for Site Remediation, N.J.A.C. 7:26E-1.1 et. seq.
                                                                     --- ---
("Technical Rules").

     Business Days mean Monday through Friday, except for Federal holidays.
     -------------

     Contamination means any and all substances, including Hazardous Substances,
     -------------
discovered to date and disclosed to RCC, or discovered during the course of
implementing the Work, located in soil, groundwater, or any other media at the
Site, or

                                       3
<PAGE>

originating at and having migrated from the Site, which Kreisler is legally
obligated to remove, control or remediate pursuant to the Lease, the New Jersey
Spill Compensation and Control Act, N.J.S.A. 58:10-23.11 et. seq., the New
                                                         --- ----
Jersey Industrial Site Recovery Act, N.J.S.A. 13:1K-6 et. seq., or any other
                                                      --- ----
Applicable Environmental Laws.

     Days means calendar days unless otherwise indicated.
     ----

     Department means the New Jersey Department of Environmental Protection and
     ----------
any successor thereto.

     Hazardous Substances means and includes any dangerous, hazardous or toxic
     --------------------
substance, material or waste which is or becomes regulated by any local
governmental authority, the State of New Jersey, or the United States
Government. The term includes any material or substance that is (i) regulated
under any applicable state statute or regulation, as a potential threat to
health, safety or environmental quality; (ii) petroleum; (iii) asbestos
(excluding asbestos which forms part of the building structure or interior);
(iv) designated as a "hazardous substance" or "pollutant or contaminant"
pursuant to Applicable Environmental Laws; (v) defined as a "hazardous waste"
pursuant to Applicable Environmental Laws; (vi) defined as a "regulated
substance" pursuant to Applicable Environmental Laws; or (vii) defined as a
"special waste" or (viii) defined as a "residual waste".

     Include(s) or Including means including, but not limited to.
     -----------------------

     Landlord means T&T Investment Company.
     --------

     Lease means the Lease agreement between Kreisler and Landlord dated
     -----

                                       4
<PAGE>

October 1, 2000 attached as Exhibit "A" and made a part hereof.

     Modification means a written agreement signed by Kreisler and RCC that
     ------------
changes this Agreement.

     Other Services means construction, operations or other activities at the
     --------------
Site which are outside the scope of this Agreement or unrelated to the Work
which may be performed by or on behalf of Kreisler by a person or entity other
than RCC.

     Progress Milestones Schedule means the payment schedule set forth in
     ----------------------------
Section 13C.

     Progress Report Schedule means a schedule provided by RCC to Kreisler that
     ------------------------
details the actual progress of the Work, including any deviations from the
original schedule.

     Project means the investigation, remediation and regulatory activities at
     --------
the Site performed pursuant to the Agreement.

     Project Completion means performing all obligations under this Agreement
     ------------------
including obtaining from the Department a written No Further Action Letter as
defined in N.J.A.C. 7:26E-1.8, or equivalent ("NFA") together with a covenant
not to sue as defined in N.J.S.A. (S)58:10B-13.1, with respect to Contamination
at, about migrating from or otherwise with respect to the Site.

     Services has the meaning set forth in Section 2 of this Agreement.
     --------

     Site means the area(s) where the Work is to be performed in Elmwood Park,
     ----
New Jersey to achieve Project Completion, as generally described in the
Invitation to Bidders, and including the Facility.

                                       5
<PAGE>

     Work means all manners of things necessary to be furnished or done by or on
     ----
behalf of RCC to achieve Project Completion by performance of the Services set
forth in Section 2.

2.   Statement of Work
     -----------------

     A.   RCC shall perform or cause to be performed for the fixed fee set forth
     in Section 13A, and any additional amounts required to be paid under
     Section 13B, all necessary investigation, remediation, and regulatory
     activities (hereinafter collectively referred to as the "Services") so as
     to achieve and document Project Completion, including the following:

          (i)    Preparing and submitting to the Department a (1) Preliminary
                 Assessment/Site Investigation; (2) Remedial Investigation
                 Report and Remedial Action Work Plan; and (3) a Negative
                 Declaration Affidavit which shall meet all data and other
                 documentation requirements under the Department's Technical
                 Rules demonstrating that Project completion has been achieved.

          (ii)   All labor, materials, equipment, subcontractor charges,
                 laboratory charges, drilling fees, disposal charges, permitting
                 fees and taxes incurred by RCC in achieving Project Completion.
                 The Services shall also include payment for transportation,
                 storage, treatment and disposal of Hazardous Substances.

          (iii)  Paying for oversight charges imposed by the Department relating
                 to achieving Project Completion.

                                       6
<PAGE>

          (iv)   Any further subsurface investigation activities which RCC or
                 the Department deems necessary to define the nature and extent
                 of the Contamination.

          (v)    Abandonment, in accordance with the Lease and Applicable
                 Environmental Laws, of any wells installed by RCC.

          (vi)   The timely preparing of any reports, documents or other
                 communications required by the Department, Applicable
                 Environmental Laws, the Lease and any insurers involved with
                 the Project.

          (vii)  With respect to the technical approach to remediation, Kreisler
                 and RCC acknowledge that additional Site investigation and
                 evaluation may be necessary before RCC can determine the
                 specific technical approach that is necessary and appropriate
                 to achieve Project Completion. RCC shall negotiate a technical
                 approach with the Department which is acceptable to the
                 Department and develop a Remedial Action Plan to implement the
                 approach approved by the Department. Kreisler and RCC
                 acknowledge that deviations from the Remedial Action Plan may
                 become necessary as the remediation proceeds and that RCC may
                 make such deviations as are reasonably necessary in order to
                 cost-effectively achieve Project Completion provided that RCC
                 (i) obtains any necessary approvals from the Department; and
                 (ii) provides Kreisler with a

                                       7
<PAGE>

                  reasonable opportunity to comment on any proposed deviations
                  prior to proposing them to the Department. In no event,
                  however, shall RCC propose or implement any deviations which
                  conflict with Kreisler's obligations under the Lease.

          (viii)  RCC shall present to and negotiate with the Department a
                  regulatory strategy for achieving Project Completion. The
                  regulatory strategy may include performing a risk assessment,
                  undertaking active remediation and/or establishing
                  institutional controls. Any proposed institutional controls
                  shall take into account the commercial and industrial uses of
                  the Site and may include restrictions on (1) the installation
                  of drinking-water wells on-site, and (2) development of
                  buildings or structures over soil containing Contamination
                  unless appropriate health & safety precautions are included in
                  the design and construction of such buildings or structures.
                  RCC will attempt to achieve unrestricted use of the Site
                  following Project Completion or to minimize the need for deed
                  restrictions, institutional controls, or any other
                  restrictions in the event unrestricted use of the Site is not
                  achievable. RCC shall, to the extent possible, negotiate with
                  the Department a provision for the future removal of any deed
                  or use restrictions should such restrictions become necessary.

                                       8
<PAGE>

          (ix)  Notwithstanding anything else to the contrary contained in this
                Agreement, nothing proposed or implemented by RCC to achieve
                Project Completion shall be contrary to Kreisler's obligations
                under the Lease and all Work shall be performed in accordance
                with the Lease.

     B.   RCC shall perform the Services, as needed, as set forth in Section 13C
     at the amounts set forth therein.

     3.   Responsibilities of Kreisler.  Kreisler shall cooperate with RCC, as
          -----------------------------
          may be reasonably necessary to the implementation of the Project,
          including by doing the following:

          (1)   Providing access for RCC's Services at the project Site;

          (2)   Obtaining access for any off-Site activities related to the
                Services;

          (3)   Supporting RCC in its negotiation of the technical remediation
                approach, regulatory strategy and scope and level of remediation
                with the Department and the Landlord;

          (4)   Continuing to make available any reports in its possession
                regarding the environmental condition of the Site; and

          (5)   Kreisler shall be listed as the owner and generator of all
                wastes and shall be responsible for signing all manifests
                required for the transportation and disposal of hazardous
                wastes.

     4.   Scheduling, Reporting and Coordination.
          ---------------------------------------

                (1)  Kreisler and RCC shall agree upon a Progress Report

                                       9
<PAGE>

                    Schedule which shall, at a minimum, be consistent with any
                    reporting requirements of the Department and any Remediation
                    Stop Loss Insurance Policy.

               (2)  During the performance of the Work, RCC shall, in accordance
                    the Progress Report Schedule, submit to Kreisler or its
                    Authorized Representative, periodic progress reports on the
                    actual progress of the Work, which shall include updated
                    schedules and copies of all correspondence and other
                    materials delivered to or received from the Department.

               (3)  RCC recognizes that Kreisler and other contractors and sub-
                    contractors under contract to Kreisler may be working
                    concurrently at the Site. RCC agrees to cooperate with
                    Kreisler and such other contractors so that the performance
                    of the Services as a whole will progress with a minimum of
                    interruption to RCC, Kreisler, other contractors, tenants,
                    licensees and invitees. RCC shall be entitled to rely on
                    Kreisler's reasonable cooperation and the reasonable
                    cooperation of Kreisler's other contractors to complete the
                    Work in a timely, orderly and efficient manner. Kreisler
                    shall provide RCC with

                                       10
<PAGE>

                    reasonable notice of other work performed or anticipated to
                    be performed at the Site to avoid interference.

               (4)  Kreisler reserves the right to perform any construction,
                    operations, or other activities at the Site which are
                    outside the scope of Work, or unrelated to the Work through
                    Kreisler's own employees or through award of separate
                    contracts to other consultants or contractors (collectively
                    "Other Services"). Upon written request from RCC, Kreisler
                    shall provide information reasonably requested by RCC
                    concerning the Other Services. Kreisler shall provide a
                    representative to meet with representatives of RCC to
                    coordinate the Work with the Other Services.

               (5)  RCC shall not interfere with the performance of such Other
                    Services at the Site and shall reasonably coordinate the
                    Work with such Other Services. Upon written request from
                    Kreisler, RCC shall provide Kreisler's contractors with
                    instructions and other information reasonably requested by
                    Kreisler, such as maps showing the location of monitoring
                    wells, recovery wells, and any other equipment on Site
                    (collectively, the "Equipment"), in order to identify the
                    location of any Equipment installed by RCC to enable such
                    contractors to avoid impeding or delaying any construction

                                       11
<PAGE>

                    activities at the Site and avoid any damage to or
                    destruction of the Equipment. RCC shall provide a
                    representative to meet with representatives of Kreisler or
                    Kreisler's contractors from time to time as necessary to
                    coordinate the Work with Other Services at the Site. RCC, at
                    its expense, shall relocate the planned placement of all
                    Equipment to the extent necessary to accommodate any
                    redevelopment plans for the Site, provided such plans are
                    disclosed to RCC prior to the Effective Date and in a manner
                    sufficient to identify the location, layout, and depth of
                    any redevelopment construction.

               (6)  At any time Kreisler believes that RCC is failing to
                    cooperate or coordinate adequately its activities with
                    Kreisler or Kreisler's Other Services, Kreisler shall notify
                    RCC in writing, and describe with reasonable specificity the
                    actions RCC should take. Similarly, in the event that RCC
                    believes at any time that Kreisler or contractors performing
                    Other Services, are failing to cooperate with RCC, RCC shall
                    notify Kreisler in writing and describe with reasonable
                    specificity the actions Kreisler should take. Thereafter,
                    Kreisler and RCC shall meet to mutually resolve any
                    interference issues.

                                       12
<PAGE>

               (7)  RCC shall submit drafts of all work plans, site assessments,
                    remedial action plans, negative declaration affidavits and
                    other reports and correspondence to Kreisler's authorized
                    representative prior to submission to the Department.
                    Kreisler shall have at least 7 days and not longer than 21
                    days in which to review the document and provide comments or
                    changes to RCC. RCC shall incorporate such comments or
                    changes when feasible and consistent with the technical and
                    regulatory approach of RCC and the Lease and shall explain
                    to Kreisler the reasons for any decision by RCC not to
                    incorporate any of Kreisler's comments or changes. Upon
                    request of Kreisler, RCC shall meet Kreisler at RCC's local
                    office or at another mutually agreeable location to discuss
                    such comments or changes. Anything to the contrary
                    notwithstanding, Kreisler reserves the right to make the
                    final decision and to approve the contents of submissions to
                    the Department, provided that Kreisler's decision on the
                    final contents of the submission are not inconsistent in any
                    material respect with the other terms and conditions of this
                    Agreement. Such approval shall not be unreasonably withheld
                    or delayed.

                                       13
<PAGE>

     5.   Cleanup.  RCC shall keep all work areas in a neat, clean and safe
          --------
          condition and in compliance with all applicable laws. RCC shall remove
          from the Site and properly dispose of all wastes generated in
          connection with the Work. Upon completion of the Work, RCC shall
          remove from the Site all of RCC's equipment and material, with the
          exception of below ground piping which may be left in place provided
          that it is properly grouted and capped at each end. The Site shall be
          left clean, safe, ready for use and in as close to its original
          condition as is reasonably practicable to the extent it can be done in
          a manner consistent with the Work.

     6.   Authorization to Proceed.  RCC shall be authorized to proceed to
          -------------------------
          perform Work upon execution of this Agreement, and submission of proof
          of bonds and insurance required by this Agreement.

     7.   Independent Contractor.  RCC shall be fully independent in performing
          ----------------------
          the Work and shall not act as Kreisler's agent or employee, but rather
          as an independent contractor retained by Kreisler to perform the Work.
          RCC shall not take any action or omit to take any action that is
          inconsistent with its status as an independent contractor under this
          Agreement. RCC shall be solely responsible for all licensing and
          permitting fees imposed in connection with the Work and for payment of
          all compensation, benefits, contributions, and taxes, if any, due its
          employees, agents, contractors, and subcontractors.

                                       14
<PAGE>

     8.   Subcontracts.  RCC shall be entitled to subcontract performance of any
          -------------
          portion of the Work under this Agreement, provided that such action
          shall not in any manner relieve RCC from responsibility for
          undertaking the Work, nor from responsibility for the actions of its
          subcontractors.

     9.   Authorized Representative.  RCC and Kreisler shall each direct
          --------------------------
          communications with each other through one designated representative
          ("Authorized Representative"). The initial Authorized Representative
          of Kreisler shall be Wallace N. Kelly and that of RCC shall be Joseph
          Russo. Each party may change its Authorized Representative by giving
          written notice to the other.

     10.  Notices to Authorized Representatives.
          --------------------------------------

          A.   RCC shall notify Kreisler's Authorized Representative, and
               Kreisler shall notify RCC's Authorized Representative within
               three Business Days of becoming aware of the occurrence of an
               event described below:

               (1)  Kreisler, RCC or any agent or subcontractor receives notice
                    of a violation of any governmental pronouncement,
                    requirement, or authorization which relates to the
                    performance of the Work;

                                       15
<PAGE>

               (2)  Proceedings are commenced or threatened which could lead to
                    the modification, revocation or abeyance of permits,
                    licenses, or other governmental authorizations which relate
                    to the Work;

               (3)  Permits, licenses, or other governmental authorizations
                    relating to the Work are suspended, modified or revoked;

               (4)  Litigation is commenced or threatened concerning or
                    affecting the Work or the Site;

               (5)  Any other condition occurs or is threatened to occur which
                    may have a materially adverse effect on the timely
                    performance of the Work, or the timely performance of any
                    duties RCC or Kreisler may have related to the Work under
                    any applicable law, regulation, ordinance, order, decree, or
                    plan.

          B.   Failure of Kreisler or RCC to provide the other with the notice
               required by this Section shall not relieve the other Party from
               any obligation it otherwise have under this Agreement except to
               the extent that failure to provide such notice has actually
               prejudiced the other Party's ability to fulfill the obligation.

     11.  Conflicts.  RCC, its agents, and subcontractors shall not, during the
          ----------
          term of this Agreement, undertake any employment or engagement, or,
          except as required by law, perform any act or allow any omission,
          which may result in a conflict with any of their respective
          obligations under this Agreement including adequately staffing the
          Work. In the event RCC is

                                       16
<PAGE>

          called upon under a purported requirement of law to do or omit
          anything which may be in violation of the foregoing, RCC shall give
          Kreisler's Authorized Representative sufficient advance written notice
          thereof to allow the matter to be contested by Kreisler.

     12.  Representations and Warrantees
          ------------------------------

          A.   RCC represents and warrants that:

               1.   Standard of Care.  It is qualified to perform the Work
                    -----------------
                    requested by this Agreement and that it has sufficient
                    expertise and experience to accomplish the Work. RCC
                    represents and warrants that it shall perform the Work and
                    all other obligations under this Agreement in compliance
                    with this Agreement, the Lease and all applicable laws
                    including Applicable Environmental Laws, and the standards
                    of care and diligence normally practiced by nationally
                    recognized firms performing Services of a similar nature.

               2.   Remediation Guarantee.  It will fulfill all its obligations
                    ----------------------
                    under this Agreement necessary to achieve Project
                    Completion, regardless of the expense or difficulty of same;
                    subject to the Representation and Warranty of Kreisler
                    contained in Subsection B 1, Existing Conditions. RCC

                                       17
<PAGE>

                    agrees that it shall bear the full risk of any unexpected or
                    unanticipated cost increase in the Work, including:

                    (i)    unknown Contamination discovered during conduct of
                           the Work;

                    (ii)   increased levels or quantities of currently known
                           Contamination;

                    (iii)  cost overruns, including costs related to use of
                           ineffective methods or procedures; and

                    (iv)   changes in Applicable Environmental Laws.

               3.   Financial Resources.  It has the financial resources to
                    --------------------
                    fulfill all the obligations of this Agreement with diligence
                    to Project Completion, even if the Contamination exceeds
                    RCC's estimate thereof, and RCC agrees to use such resources
                    as necessary to diligently achieve Project Completion.

               4.   Necessary Skills.  It has all the necessary skills,
                    -----------------
                    training, and expertise required to accomplish the
                    requirements of this Agreement and is experienced in
                    providing services at similar sites involving similar
                    environmental conditions.

               5.   Adequate Staffing.  It will furnish a competent and adequate
                    ------------------
                    staff as necessary for the proper, diligent and timely
                    administration, performance, coordination, and

                                       18
<PAGE>

                    supervision of the Work; organize the procurement of all
                    materials and equipment so that they will be available at
                    the time they are needed for performance of the Work; and
                    keep an adequate force of skilled staff on the job to
                    complete the Work in accordance with the provisions of this
                    Agreement.

               6.   Subcontractors.  It will pay promptly its subcontractors all
                    ---------------
                    amounts due and payable and shall indemnify, defend, and
                    hold Kreisler and Landlord harmless from any claims or liens
                    of subcontractors. Kreisler reserves the right to pay
                    directly any undisputed amounts otherwise due subcontractors
                    and offset amounts otherwise due RCC. Nothing herein shall
                    imply any obligation of Kreisler to directly pay any
                    subcontractor.

               7.   Supervision.  It shall supervise and direct the Work, using
                    ------------
                    RCC's best skill and attention. Subject to provisions to the
                    contrary, RCC shall be responsible for and have complete
                    control over: (1) performance means, methods, techniques,
                    sequences, and procedures, (2) health or safety precautions
                    and programs in connection with the Work, and (3)
                    coordinating the Work under the Agreement, unless

                                       19
<PAGE>

                    directed otherwise by Kreisler or its Authorized
                    Representative.

               8.   Site Investigation. It has had an adequate opportunity to
                    ------------------
                    visit the Site and off-site properties, to study relevant
                    documents concerning the Site and off-site properties, and
                    to conduct such other investigations as RCC deemed
                    necessary, prior to entering into this Agreement.

B.   Kreisler represents and warrants that:
     -------------------------------------
     1.        Existing Conditions.  It made available to RCC all relevant
               -------------------
               information in its possession regarding existing environmental,
               geologic and geotechnical conditions of the Site and it provided
               to RCC, in writing, all criteria, preliminary design, plans and
               all other information relating to Kreisler's requirements for the
               Project, including, but not limited to, plot plans, topographic
               surveys, hydrogeologic data, previous soil data, field or
               laboratory tests and written reports.

13.  Contract Price and Payment
     --------------------------
               A.   Contract Price.  RCC shall receive the total fixed price of
                    ---------------
                    $2,115,122 ("Contract Price") and an additional sum of
                    $22,000 as set forth herein ("Additional Sum").  Neither the
                    Contract Price, nor the Additional Sum include reimbursement
                    for the cost of Bonds required by Section

                                       20
<PAGE>

                    15G. No adjustments will be made to the Contract Price,
                    including any arising from the conditions set forth in
                    Section 12A(2), Remediation Guarantee, except as expressly
                    set forth in Section 13B below.

               B.   Contingent Payments.
                    --------------------
                    (1) RCC has advised Kreisler that, based upon Site sampling
                        performed by RCC on or about February 21, 2001, and
                        reported in a certain letter dated April 16, 2001, there
                        is the potential need for additional off-site
                        remediation in the down-gradient area of Fleischer Brook
                        ("Fleischer Brook Area of Concern" or "Fleischer Brook
                        AOC"). If additional Services are required in connection
                        with the Fleischer Brook AOC, all such Services shall be
                        performed by RCC or under its direction on a unit price
                        basis of $8,000 for the first 20 tons of soil; an
                        additional $16,000 for 21 to 60 tons of soil; an
                        additional $16,000 for 61 to 100 tons of soil; an
                        additional $40,000 for 101 to 200 tons, and an
                        additional $50,000 for all quantities over 200 tons of
                        soil, with a not to exceed aggregate price of $ 130,000.

                    (2) RCC has also advised Kreisler that, in addition to the
                        areas requiring remediation identified in its proposal

                                       21
<PAGE>

                        and the Fleischer Brook AOC, several previously
                        uninvestigated floor drains in the central portion of
                        the Facility represent other areas of concern ("AOC")
                        which, following additional investigation to be
                        performed by RCC under Section 2.A. above, may require
                        additional remediation. If additional Services are
                        required with respect to said additional AOCs, RCC shall
                        perform or cause to be performed all such Services on a
                        unit price basis of $ 35,000 for the first 5,000 square
                        feet of additional remediation area, an additional $
                        60,000 for 5,000 to 15,000 square feet of additional
                        remediation area, and an additional $ 100,000 for over
                        15,000 square feet of additional remediation area, with
                        a not to exceed aggregate price of $ 195,000.

                    (3) RCC shall perform any and all additional Services
                        necessary to address any other AOCs, potential AOCs, or
                        areas of contamination at or with respect to the Site at
                        no additional cost to Kreisler.

               C.   Payment Schedule.  In connection with payment of the
                    -----------------
                    Contract Price, an Initial Payment of 12% of the Contract
                    Price shall be made to RCC upon execution of this Agreement,
                    plus the cost of the Bond premiums which shall

                                       22
<PAGE>

                    reimburse RCC for previous payments of same. The balance of
                    the Contract Price shall be paid to RCC in the form of
                    progress payments according to the Progress Milestones
                    Schedule described below. If a Milestone is eliminated from
                    the Work, its associated payment shall be made to RCC upon
                    accomplishment of the activities that replace the eliminated
                    Milestone, or if no activity replaces the Milestone, upon
                    accomplishment of the next scheduled Milestone.

          (1)  The Second Payment of 14% of the Contract Price shall be paid to
               RCC upon completion of remedial investigations and submission of
               the remedial investigation technical report to the Department.

          (2)  The third payment of 7% of the Contract Price shall be paid to
               RCC upon completion of a pilot test or feasibility study and
               submission of the pilot test or feasibility study report to the
               Department.

          (3)  The fourth payment of 6% of the Contract Price shall be paid to
               RCC upon submission of a Remedial Action Plan to the Department.

          (4)  The fifth payment of 13% of the Contract Price shall be paid to
               RCC following the completion of the soil excavation activities.

                                       23
<PAGE>

          (5)  The sixth payment of 13% of the Contract Price shall be paid to
               RCC following receipt of the Department's approval of the
               Remedial Action Work Plan and subsequent startup of the
               remediation system and submission of a startup report to the
               Department.

          (6)  The seventh through eighteenth payments of 2% each of the
               Contract Price will be paid to RCC on a quarterly basis for up to
               3 years commencing with the quarter following payment 6. These
               progress payments are associated with a possible operation and
               maintenance period prior to RCC's obtaining a conditional NFA for
               groundwater from the Department. If the operation and maintenance
               period exceeds three years, RCC (at its sole cost) will continue
               to perform the operation and maintenance, as required, until
               Project Completion.

          (6)  Upon obtaining a conditional NFA for groundwater, Kreisler shall
               pay to RCC:

               (i)  11% of the Contract Price and

               (ii) the equivalent of interest on the Adjusted Contract Price at
                    an interest rate of 5.29% per annum over the Period of
                    Calculation (both defined below). Adjusted Contract Price is
                    defined as the Contract Price, net of the Initial Payment,
                    decreased over the Period of Calculation to reflect all

                                       24
<PAGE>

                    payments of the Contract Price. The Period for Calculation
                    begins with the date of the Authorization to Proceed and
                    ends with the earlier of the date of obtaining a conditional
                    NFA for groundwater, or 6 years after the date of
                    Authorization to Proceed, whichever is earlier.

          (7)  RCC will be paid $7,300 of the Additional Sum upon submission to
               Kreisler of a written report setting forth the results of the
               first round of sampling following receipt of the conditional NFA
               for groundwater. The balance of the Additional Sum is of $14,700
               will be paid upon Project Completion.

          (8)  Kreisler shall pay RCC any amounts due under Section 13B, in
               accordance with Section 13D.

     D.   Payment Documentation.  Kreisler shall make payments to RCC in
          ----------------------
          accordance with the Payment Schedule in Section 13 C. Upon
          accomplishing each milestone, or, in the case of amounts payable to
          RCC under Section 13B, for all Services performed by RCC during the
          previous thirty days (subject to the overall limits set forth in
          Section 13B), RCC shall submit an invoice therefore together with
          appropriate evidence of the accomplishment of the milestone, or of the
          Services performed in the case of Section 13 B, to Kreisler's
          Authorized Representative, (e.g., a copy of a report and a signed
          return receipt of the report by the Department) or certified payroll
          records and material invoices (including treatment or

                                       25
<PAGE>

          disposal documentation) in the case of Section 13 B. Kreisler shall
          issue the payment to RCC within twenty-one (21) days after receipt of
          the invoice and supporting documentation unless Kreisler submits to
          RCC a written objection within fourteen (14) days after Kreisler's
          receipt of the invoice. Each objection shall set forth with reasonable
          specificity the nature of the objection. In the event notice of
          objection to an invoice is provided as required herein, Kreisler and
          RCC shall use their best efforts to resolve the objection to the
          disputed invoice. Payment of any undisputed portion of the disputed
          invoice shall be due thirty (30) days after the Authorized
          Representative's receipt of the invoice. Payment of the disputed
          portion of the disputed invoice shall be due twenty-one (21) days
          after the Parties' resolution of the disputed invoice. All objections
          to invoices that have not been resolved within 60 days of receipt of
          the objection by RCC shall be subject to binding Arbitration as
          provided herein. Objections to payment of invoices must be based on
          one or more of the following reasons:

               1.   RCC has failed to complete the Payment Milestones in
                    question;

               2.   Work was not performed in accordance with the Agreement;

                                       26
<PAGE>

               3.   RCC has failed to make payments in accordance with the terms
                    of RCC's contracts with its subcontractors or for labor,
                    materials, or equipment supplied to the Site,

               4.   A claim against Kreisler or the Site, has been filed by a
                    third party, in connection with the Work performed by RCC;

               5.   RCC has caused damage to Kreisler or the Site, or to other
                    contractors at the Site or RCC is otherwise failing to
                    comply with a material provision of the Agreement, or

               6.   Work performed and paid for under prior Milestones, or
                    invoices in the case of Section 13 B, is found to be
                    deficient.

     14.  Contract Performance Schedule
          -----------------------------

          RCC shall use its best efforts to achieve Project Completion, as
     expeditiously as possible, consistent with the Project Milestones.

     15.  Insurance
          ---------

     A.   Required Insurance.
          -------------------

          (1)  RCC shall maintain, at its own expense and for the period set
               forth in Section 15 C, Terms of Coverage, the following insurance
               coverage in the following amounts:

               (i)  Worker's Compensation and Employer's Liability Insurance in
                    an amount not less than that prescribed by law;

                                       27
<PAGE>

               (ii)   Comprehensive Automobile Liability Insurance (owned, non-
                      owned, and hired) with limits of one million dollars
                      ($1,000,000) per occurrence and two million dollars
                      ($2,000,000) in the aggregate and umbrella and excess
                      coverage, with a limit of seven million dollars
                      ($7,000,000) (as long as such limit is commercially,
                      reasonably available, otherwise, the maximum amount which
                      is commercially, reasonably available);

               (iii)  Commercial General Liability Insurance with limits of one
                      million dollars ($1,000,000) per occurrence and two
                      million dollars ($2,000,000) in the aggregate which policy
                      shall have broad-form contractual liability coverage and
                      such endorsements as may be reasonably acceptable to
                      Kreisler and umbrella and excess coverage with a limit of
                      seven million dollars ($7,000,000) each incident and in
                      the aggregate (as long as such limit is commercially,
                      reasonably available, otherwise, the maximum amount which
                      is commercially, reasonably available); and

               (iv)   Professional Errors and Omissions and Contractor's
                      Pollution Legal Liability Insurance with limits of two
                      million dollars ($2,000,000) per incident and in the
                      aggregate and umbrella and excess coverage, with a limit
                      of

                                       28
<PAGE>

                      seven million dollars ($7,000,000) (as long as such limit
                      is commercially, reasonably available, otherwise, the
                      maximum amount which is commercially, reasonably
                      available);

          (2)  RCC's Commercial General Liability, Professional Errors and
               Omissions and Pollution Legal Liability coverage may be provided
               under one policy, but with separate deductibles and coverage as
               set forth herein.

     B.   Remediation Stop Loss Insurance.  In its sole discretion, Kreisler may
          --------------------------------
          elect to purchase Remediation Stop Loss Insurance.  Under such
          circumstances, Kreisler agrees to add RCC as an additional insured.
          The purchase of such insurance by Kreisler, however shall not relieve
          RCC of any of its obligations under this Agreement including its
          obligation to perform the Services and any additional Services as set
          forth in Section 13B for the Contract Price, the Additional Sum and
          any Contingent Payments.

     C.   Term of Coverage.  With respect to Sections  15 A, insurance of a
          -----------------
          sufficient magnitude to satisfy the foregoing shall be maintained
          during the course of the Work and for at least four years following
          the termination of the Agreement or the completion of the Work under
          this Agreement.  The required insurance shall provide coverage for the
          acts and omissions of RCC, its agents, employees, contractors, and
          subcontractors, and shall

                                       29
<PAGE>

          contain broad-form contractual liability coverage. All policies shall
          be issued on an "occurrence" basis. All policies shall require that
          Kreisler be provided with thirty (30) days advance written notice of
          cancellation, reduction, change, or non-renewal of each such policy.
          Proof of insurance shall be provided by RCC at execution of this
          Agreement and will be kept up to date at all times by RCC. In the
          event a Professional Errors and Omissions and Contractor's or
          Pollution Legal Liability Insurance policy is to be terminated, RCC
          shall prevent any gap in coverage during the course of the Work and
          for four (4) years thereafter by either (i) extending the present
          policy to cover the time period before a new policy is obtained or
          (ii) purchasing a new policy which relates back to cover the
          appropriate time period. The provisions of this Section 15C shall
          survive the completion of the Work or termination of this Agreement.

     D.   Copy of Policy.  If requested, a current copy of any of the insurance
          ---------------
          policies required under this Agreement shall be provided to Kreisler
          by RCC.  RCC represents and warrants that, except as described in
          detail in Exhibit "B", attached and made a part hereof for all
          purposes, RCC is not the subject of or a party to any claim, demand,
          mediation, arbitration, lawsuit, or judgment as would threaten
          availability of the insurance coverage required under this Agreement.
          RCC shall promptly update the information on Exhibit "B" whenever a
          material change in said information occurs.

                                       30
<PAGE>

     E.   Named as Additional Insureds. Kreisler shall be named as an additional
          -----------------------------
          additional insured with waiver of subrogation rights on all insurance
          coverage provided by RCC as per Sections 15 A and 15 B, except
          worker's compensation and Professional Liability Errors and Omissions
          coverage or except where Kreisler shall decline same in advance and in
          writing.

     F.   Waiver of Rights.  Kreisler and RCC waive all rights against one
          -----------------
          another for all losses and damages to the extent covered and actually
          paid by the policies of insurance provided for herein and applicable
          to the Work.

     G.   Bonds.  Following execution of this Agreement, but later than
          ------
          commencement of the excavation and remediation system construction
          portion of the Project, RCC shall provide Kreisler, at Kreisler's
          expense, a Labor and Materialman Bond and a Performance Bond
          (collectively, "Bonds") in amounts each equal to the estimated cost of
          the excavation and remediation system construction portion of the
          Project, $1,243,190.  The cost of the Bonds shall not exceed $25,000.
          Such Bonds shall be:

               (i)   issued by a surety company authorized to do business in New
                     Jersey and acceptable to Kreisler; and

               (ii)  in a form acceptable to Kreisler.

     16.  Financial
          ---------

     A.   Control of Management RCC shall be solely responsible for and Kreisler
          ---------------------
          shall have no right with respect to the management of RCC's own
          internal

                                       31
<PAGE>

          affairs, including, without limitation, those relating to its
          compliance with laws, regulations and rules governing its formation,
          preservation and functioning as a corporation and its management,
          accounting policies, insurance programs, shareholder and labor
          relations, as related to RCC's performance of the Work under this
          Agreement, and otherwise.

     B.   Financial Statements.  Upon Kreisler's written request, at any time,
          ---------------------
          RCC shall provide Kreisler with such financial statements as are
          available to provide information relative to the financial ability of
          RCC to perform the Work under this Agreement and to otherwise satisfy
          its obligations hereunder. Kreisler shall maintain the confidentiality
          of, and not disclose the information to anyone (other than officers of
          Kreisler, Kreisler's counsel, or Kreisler's lenders, who shall be
          required to sign a Confidentiality Agreement). All such financial
          statements must be prepared in accordance with Generally Accepted
          Accounting Principles ("GAAP") consistently applied and must fairly
          present the financial condition and results of operations of RCC for
          the periods covered hereby.

     17.  Assignment of Kreisler's Rights to Future Buyer
          -----------------------------------------------

          It is understood that Kreisler may convey or assign its rights under
     this Agreement (provided Kreisler's duties and obligations hereunder are
     delegated to and assumed in full by a buyer and/or assignee) in conjunction
     with a transfer or sale of all or a portion of its business. In the event
     of a subsequent disposition of all or a portion of the business, RCC shall
     agree that a buyer and/or assignee or a

                                       32
<PAGE>

     foreclosing lender or other similar party may succeed to the rights of
     Kreisler in connection with the Project, subject to additional conditions
     that (1) RCC's rights and obligations shall remain intact and unaffected by
     any such disposition of the business or portion thereof and (2) buyer's
     and/or assignee's rights shall not be any greater than Kreisler's
     hereunder, or enlarged with respect to enforcement or carrying-out of any
     corresponding obligations of RCC vis-a-vis the rights and privileges of
     Kreisler. It is a condition of the assignment hereunder of Kreisler's
     rights to future buyers, that if portions of the business are sold to more
     than one buyer, the assignee of the Lease for the Facility, or, if none,
     the buyer of a majority of Kreisler's assets, shall represent the buyers
     for purposes of administering and completing the performance of this
     Agreement.

     18.  Kreisler's Remedies
          -------------------

     A.   Partial Takeover of Work.  If RCC fails or refuses to perform the Work
          ------------------------
          in accordance with this Agreement, Kreisler, without prejudice to any
          other right or remedy Kreisler may have at law or equity, or under
          this Agreement, may, after giving notice:

          (1)  Terminate the Agreement for Cause as set forth in Section 18 B;

          (2)  Order RCC to stop performance of the Work, or any portion
               thereof, until the failure to perform has been eliminated by RCC
               at RCC's cost and expense. However, the right of Kreisler to
               order RCC to stop performance of the Work shall not give rise to
               a duty on the part of Kreisler to exercise this right for the
               benefit of RCC

                                       33
<PAGE>

               or any other person or entity;

          (3)  Perform the Work, using its own employees and equipment, or the
               employees and equipment of another and/or the equipment of RCC at
               the site or RCC's agents or subcontractors (without liability for
               trespass or conversion), after giving ten (10) Business Days
               written notice to RCC and, its Surety. Kreisler may deduct from
               the payments then or thereafter due to RCC the cost of performing
               such Work, including, but not limited to, the cost of additional
               engineering and management made necessary by RCC's failure to
               perform such Work and interest on any funds advanced by Kreisler
               for such costs at (i) the rate of 5.29% per annum from the date
               of each such advance until payment thereof by RCC, or (ii) the
               maximum nonusurious rate authorized or allowed by applicable law,
               if greater.

          (4)  Following notice, RCC shall have ten (10) Business Days to cure
               any failure or refusal to properly perform the Work before
               Kreisler may exercise its rights under this Section.

     B.   Termination for Cause.  Notice of Termination for Cause, as defined in
          ----------------------
          Section 18 C shall be by written notice ("Termination Notice") from
          Kreisler to RCC and its Surety at least ten (10) business days prior
          to the proposed termination date ("Termination Date"); provided,
          however, this ten (10) day period may be extended at the discretion of
          Kreisler to allow for cure by RCC. RCC shall have until the
          Termination Date to cure the

                                       34
<PAGE>

          default. If the default is cured prior to the Termination Date, as
          acknowledged in writing by Kreisler, the Termination Notice shall
          automatically be deemed of no further force or effect. Termination for
          Cause shall be effective in the manner specified in the Termination
          Notice and shall be without prejudice to any claims of Kreisler under
          law or equity or any other provision of this Agreement.

          Upon termination of this Agreement by Kreisler pursuant to this
          Section 18 B, the following may occur at the sole discretion of
          Kreisler:

          (1)  Kreisler may call upon the Surety to complete the Work under the
               Performance Bond.

          (2)  Kreisler may take possession of any or all materials and
               equipment, tools, and construction equipment (owned by RCC) at
               the Site and finish the Work by whatever method Kreisler may deem
               expedient.

          (3)  RCC shall, upon request by Kreisler, promptly advise Kreisler of
               all outstanding unperformed or uncompleted subcontracts, rental
               agreements, and purchase orders which RCC has with others
               pertaining to performance of the Work and furnish Kreisler with
               complete copies thereof. Upon request by Kreisler, RCC shall
               assign to Kreisler, without expense to Kreisler, and by
               instrument in form and content satisfactory to Kreisler, RCC's
               title to materials and equipment previously paid for, and those
               subcontracts, rental agreements, and purchase orders designated
               by Kreisler.

                                       35
<PAGE>

          (4)  RCC shall be entitled to receive payment pursuant to Section 13 B
               for Work performed in accordance with the terms of this Agreement
               up until the Termination Date less excess cost to compete. If the
               sum of the cost to Kreisler to complete the Work plus amounts
               previously paid to RCC for the Work exceed the Contract Price for
               the completed Work, RCC shall promptly pay the difference to
               Kreisler.

          (5)  Kreisler shall have the right to waive an event of default and
               such waiver shall not waive future defaults by RCC, nor estop
               Kreisler from asserting such future defaults as a basis for
               termination.

     C.   Termination for Cause by Kreisler.  With respect to RCC, the following
          ----------------------------------
          shall constitute "Cause":

          (1)  If the Work is not diligently performed;

          (2)  If the Work is not performed in accordance with the material
               provisions of this Agreement; or RCC otherwise fails to comply
               with a material provision of the Agreement.

          (3)  If RCC fails to comply with applicable laws, rules, regulations,
               statutes, permits, orders or ordinances, including Applicable
               Environmental Laws, (hereinafter collectively referred to as
               "Applicable Laws") pertaining to the Work;

                                       36
<PAGE>

          (4)  If any voluntary proceedings in bankruptcy or insolvency are
               commenced by or against RCC, except if withdrawn within 60 days;
               and/or

          (5)  If RCC commits any act of bankruptcy or becomes insolvent or
               unable to meet its debts as they mature.

          If RCC is in default under this Agreement, and notwithstanding Section
          26 B, Arbitration or Disputes, Kreisler shall, in addition to the
          termination rights set forth herein, have all rights and remedies
          available to it at law or in equity, including, without limitation,
          the right to seek specific performance to enforce this Agreement.
          Nothing contained in the foregoing sentence shall be deemed to imply
          that Kreisler shall have the right to terminate this Agreement for any
          reason other than "cause" or prior to the Termination Date.

     C.   Disengagement Services.  Upon Termination for Cause by Kreisler, RCC
          -----------------------
          shall, upon Kreisler's written request, perform such Services as
          Kreisler reasonably deems necessary to preserve and protect the Work
          already in progress and to dispose of any property as requested by
          Kreisler or its Authorized Representative.

     19.  Notice of Breach by RCC
          -----------------------

          Following written notice and a ten (10) Business Day opportunity to
     cure (or such longer period as allowed by RCC), RCC may declare Kreisler in
     breach of the Agreement ("Breach") and stop performance.  Notwithstanding
     the previous

                                       37
<PAGE>

     sentence, RCC shall not stop performance if the validity of the Breach is
     subject to Section B Arbitration of Disputes.

     20.  Definition of Breach.  With respect to Kreisler, the following shall
          ---------------------
     constitute a Breach.

          (1)  If Kreisler wrongfully withholds payment to RCC under Section 13D
               for the undisputed portion of valid invoices;

          (2)  If Kreisler fails to timely pay RCC any undisputed amounts owed
               to RCC by Kreisler hereunder; or,

          (3)  If Kreisler or Landlord wrongfully prevent RCC from performing
               its material duties and obligations under this Agreement.

     21.  Termination without Cause or Breach
          -----------------------------------

          Neither party shall have the unilateral right to terminate this
          Agreement without Cause or Breach.

     22.  Indemnities and Limitation of Damages
          -------------------------------------

     A.   Indemnity by RCC.  RCC agrees to indemnify, hold harmless, and defend
          -----------------
          (with attorneys reasonably acceptable to the applicable indemnified
          Party) Kreisler, Kreisler's directors, officers, employees, agents,
          representatives, shareholders, partners, investors, affiliates,
          parents, subsidiaries, successors, assigns and Landlord from and
          against losses, damages, interest, liabilities, proceedings, causes of
          action, claims, suits, demands, actions, judgments, fines, penalties,
          costs, and expenses (hereinafter collectively referred to as
          "Claims"), which any or all of them

                                       38
<PAGE>

          may become responsible for or pay out to the extent resulting from or
          arising out of:

          (1)  Performance of the Work by RCC or its employees, agents,
               representatives, contractors, subcontractors, successors, or
               assigns; or,

          (2)  Any breach of this Agreement by RCC or its employees, agents,
               representatives, contractors, subcontractors, successors, or
               assigns.

     B.   Indemnity by Kreisler.  Kreisler agrees to indemnify, hold harmless,
          ----------------------
          and defend (with attorneys reasonably acceptable to the applicable
          indemnified Party) RCC, the affiliated companies of RCC, and all of
          their respective directors, officers, employees, agents,
          representatives, shareholders, partners, affiliates, parents,
          subsidiaries, successors, and assigns from and against any Claims
          which any or all of them may become responsible for or pay out to the
          extent resulting from or arising out of:

          (1)  Performance by Kreisler of any of its obligations under the
               Agreement; or,

          (2)  Any breach of this Agreement by Kreisler or its employees,
               agents, contractors, subcontractors, successors, or assigns.

          (3)  Environmental conditions existing at the Site prior to entry by
               RCC onto the Site; provided that this Section shall not cover the
               conduct of the Work by RCC under this Agreement or the
               exacerbation of such environmental conditions by RCC.

                                       39
<PAGE>

          (4)  Natural Resources Damages except to the extent actions of RCC
               cause or contribute to such damages.

          (5)  Any violation or fines imposed by regulatory agencies due to
               delay of project implementation prior to execution of this
               Agreement.

     C.   Joint Act or Omission.  In the event a claim for which indemnification
          ----------------------
          is sought involves the joint action and/or omission of Kreisler and
          RCC or those for whom either is responsible under this Agreement, then
          it is the Parties' desire and intent that each Party be responsible to
          the extent of its own act or omission and that neither Party be
          responsible for the other's act or omission.

     D.   Claim by Agent or Subcontractor.  In the event of claims against any
          --------------------------------
          person or entity indemnified above by any direct or indirect agent or
          employee of RCC, or its subcontractors, or of anyone for whose acts or
          omissions RCC or its subcontractors may be liable, the indemnification
          obligation under this Section shall not be limited by a limitation of
          any amount or type of damages, compensation, or benefits payable to
          said employee or agent contained in any worker's compensation acts,
          disability benefit acts, or other employee benefit acts or in any
          subcontract.

     E.   Claims by Landlord
          ------------------

          RCC acknowledges that Landlord is the owner of the Facility and the
          landlord of Kreisler under a lease for the Facility.  Nothing herein
          is intended to relieve RCC from liability, including liability under
          any

                                       40
<PAGE>

          indemnification, for harm to Landlord or the Facility caused by RCC's
          acts or omissions.

     F.   Punitive Damages.  Neither Party shall, as a result of the performance
          -----------------
          of the Work or this Agreement, be liable to the other, whether in
          contract (including indemnification hereunder), tort, or otherwise,
          for punitive damages, and each Party hereby waives any statutory
          rights under law to assert or recover same.

     G.   Consequential Damages.  With respect to any legal proceeding or
          ----------------------
          dispute between the Parties, neither Party will be held liable to the
          other for consequential, special or incidental damages of any kind,
          regardless of how caused or the theory on which asserted.

     23.  Force Majeure
          -------------

     A.   Force Majeure Event.  Neither Party shall be deemed in default or
          --------------------
          breach of this Agreement to the extent that any delay or other failure
          to perform its obligations as required pursuant to the Agreement
          results without its fault or negligence from an event of "Force
          Majeure." For purposes of this Agreement, the term "Force Majeure"
          shall be defined as follows: any event arising from causes beyond the
          reasonable control of the Parties (other than a Party's lack of or
          inability to obtain funds to fulfill its obligations or undertakings
          under this Agreement) that is not foreseeable, that delays the
          performance of any obligation arising under this Agreement, including,
          acts of God, labor disputes, strikes, vandalism,

                                       41
<PAGE>

          fires, floods, or weather conditions which would prevent or impair the
          performance of the Work. Upon the occurrence of any event claimed by a
          Party to be Force Majeure, the claiming Party shall notify the other
          Party promptly of the occurrence of such event, followed by written
          notification thereof given within three (3) calendar days after the
          date the claiming Party discovered or should have discovered the event
          of Force Majeure has occurred. The written notification shall contain
          any information which may be required to be disclosed to an applicable
          governmental authority under any Applicable Environmental Laws or
          administrative or court order affecting the Work. Failure to notify
          the other Party either orally or in writing in accordance with this
          Section shall constitute a waiver of such claim of Force Majeure,
          provided, however, no modification of the Work shall be made unless
          and until written notice is provided. If the Parties cannot agree that
          the reason for delay or failure of performance is a Force Majeure
          event, the Parties shall submit such issue to arbitration in
          accordance with Section hereof. In no event shall any event of Force
          Majeure relieve either Party of any obligation hereunder other than to
          extend the time of performance required of such Party. The Party
          claiming a Force Majeure event shall use its best efforts,
          notwithstanding the event, to mitigate its effects on the performance
          of its obligations.

                                       42
<PAGE>

     24.  Health and Safety Compliance
          ----------------------------

          A.   Health and Safety.  RCC shall take reasonable precautions to
               ------------------
               protect the Site, any off-site property and any persons,
               including its employees from damage, injury or illness arising
               out of the performance of the Work. RCC shall comply with all
               applicable federal, state, and local applicable health and safety
               laws, including the Occupational Safety and Health Act of 1970
               (84 U.S. Statutes 1590), as amended, and regulations thereunder,
               and RCC warrants the compliance therewith of materials,
               equipment, and facilities, whether temporary or permanent,
               furnished by RCC in connection with the performance of the Work.
               RCC shall insure that its employees are properly trained,
               registered and certified, as required by applicable laws,
               including but not limited to the Applicable Environmental Laws or
               as otherwise required to safely and properly perform the Work.

          B.   RCC shall appoint an individual at the Site who shall act as
               RCC's designated safety representative. RCC shall immediately
               report all accidents and injures at the Site to Kreisler's
               Authorized Representative, who shall also receive copies of any
               reports filed with public authorities as a result of any accident
               or injury.

                    If Kreisler or its authorized representative reasonably
               deems any part of the Work unsafe, Kreisler, without assuming

                                       43
<PAGE>

               liability for RCC's Safety and Health Program, may require RCC to
               take corrective actions satisfactory to Kreisler and/or to stop
               performance of the Work.  If RCC fails to take appropriate
               actions, Kreisler may perform them and reduce the Contract Price
               accordingly.  No adjustment in Contract Price or Completion Date
               shall be permitted for compliance with Kreisler's reasonable
               requests under this Section.

     25.  Confidentiality, Records Retention and Reporting
          ------------------------------------------------

     A.   Treatment of Confidential Information.
          --------------------------------------

          1.  RCC shall treat as confidential any information marked or
              designated as confidential or proprietary by Kreisler, which shall
              not include publicly available information. Such information shall
              not be disclosed to anyone other than Kreisler or its Authorized
              Representative, except for:

              (1)   Disclosures to governmental authorities required for
                    performing the Work;

              (2)   Disclosure to RCC subcontractors for the purpose of
                    implementing the Work;

              (3)   Disclosure to RCC's auditors, counsel and lenders.

          This Section shall survive termination or completion of this Agreement
          for a period of 5 years.  RCC shall have its successors, auditors,
          counsel lenders and subcontractors execute a Confidentiality Agreement

                                       44
<PAGE>

          satisfactory to Kreisler prior to disclosing any confidential
          information to them and shall submit any information required by
          governmental authorities under a claim of confidentiality. To the
          extent such disclosure is mandated by law, RCC shall give Kreisler the
          right to exhaust all challenges to the disclosure, prior to disclosing
          the information.  To the extent the challenges to the disclosure
          involve reasonable additional expenses to RCC for costs of testimony
          and assistance of counsel, such costs shall promptly be reimbursed by
          Kreisler, as applicable.

          2.  Kreisler shall have the right to disclose documents and
              information (including financial information of RCC) related to
              the Work to actual and prospective lenders, buyers, investors,
              insurance companies, Landlord and subtenants of Kreisler. Kreisler
              shall not disclose confidential or proprietary information of RCC
              which was marked or designated confidential or proprietary and
              which is not publicly available without RCC's prior written
              approval which RCC shall not unreasonably withhold.

     B.   Use of Project Information.  RCC agrees that any promotional material
          ---------------------------
          disseminated in the course of its business may not disclose the name
          of Kreisler or Landlord or identify the specific Project location.
          RCC agrees further that any statement of qualifications submitted to
          any third party in connection with potential projects or business
          relationships shall disguise the Project in such a manner that its
          location and Kreisler's identity cannot

                                       45
<PAGE>

          be ascertained or determined. Kreisler can, in Kreisler's sole and
          absolute discretion, allow RCC to identify the location of the Project
          and/or the identification of Kreisler in such materials.

     26.  Claims
          ------

     A.   Notice of Claim.  Any money claim or matter in dispute asserted by a
          ----------------
          Party pursuant to this Agreement must be in writing, must set forth
          the facts upon which it is based, and except as expressly provided to
          the contrary herein, must be received by the other Party at least
          thirty (30) calendar days prior to the filing of any demand for
          arbitration involving such claim or dispute. The Parties agree that
          such notice shall be a jurisdictional prerequisite to arbitration. The
          Parties shall consider the use of mediation and any other form of
          Alternative Dispute Resolution prior to proceeding to Arbitration.

     B.   Arbitration of Disputes.  Claims or matters in dispute between the
          ------------------------
          Parties arising out of or relating to this Agreement during the
          pendency of this Agreement or the Work shall be decided by binding
          arbitration under the Commercial Arbitration Rules of the American
          Arbitration Association, except to the extent modified herein. For any
          hearing conducted in the arbitration, the parties agree to use one
          arbitrator, and not exceed twenty-four (24) hours of hearing time (12
          hours each) regardless of the complexity of the claim or matter in
          dispute. No arbitration arising out of or relating to this Agreement
          or the Work shall include, by consolidation

                                       46
<PAGE>

          or joinder or in any other manner, any additional person not a Party
          hereto, except by written consent signed by the Parties and any other
          person sought to be joined. Consent to arbitration involving an
          additional person or persons shall not constitute consent to
          arbitration of a dispute not described or with a person not named
          therein. This provision shall be specifically enforceable in any court
          of competent jurisdiction. Notice of demand for arbitration shall be
          filed in writing with the other Party. The demand for arbitration
          shall be made within a reasonable time after the written notice of
          claim or matter in dispute is made. In no event shall the demand for
          arbitration be made after the date when the applicable statute of
          limitations would bar institution of a legal or equitable proceeding
          based on such claim or matter in dispute. However, once a claim is
          made, the statute of limitations shall be tolled during the thirty
          (30) day period from the time the claim is filed until the demand for
          arbitration is filed. The award rendered by the arbitrator shall be
          final, and judgment may be entered upon it in accordance with
          applicable law in any court having jurisdiction. Unless otherwise
          agreed in writing, RCC shall carry on the Work and maintain its
          progress during any claim filing and arbitration proceedings, and RCC
          shall be entitled to continue to receive undisputed payments in
          accordance with this Agreement.

               This Section shall survive Project Completion or termination of
          this Agreement.  Notwithstanding anything to the contrary in this
          Section,

                                       47
<PAGE>

          third party actions commenced against either Party that do not result
          in consolidation or joinder are excepted from the requirements of this
          Section.

     27.  Notices
          -------

          All notices and other communications required to be made under this
     Agreement shall be made by hand delivery or by overnight mail and shall be
     deemed to have been made as of the time and date of receipt.  All such
     notices and communications from RCC to Kreisler shall be addressed for
     delivery to:

                      Kreisler Manufacturing Corporation
                      180 Van Riper Avenue
                      Elmwood Park, New Jersey
                      Attn.: Mr. Wally Kelly

     All such notices and communications from Kreisler to RCC shall be addressed
     for delivery to:

                      Resource Control Corporation
                      P.O. Box 579
                      Rancocas, New Jersey 08002
                      Attn.: Jeffrey C. Dey

     Any Party may change its designation of addressee or address upon written
     notice to all other entities listed in this Section.

     28.   Miscellaneous
           -------------

     A.   Entire Agreement.  This Agreement represents the final embodiment of
          -----------------
          the Parties' intentions and understandings with respect to the subject
          matter hereof.  It supersedes any prior understandings, whether
          written or oral, or of any description whatsoever.

                                       48
<PAGE>

     B.   Modification.  No modification of this Agreement shall be binding upon
          -------------
          either Party except by a written instrument executed by both Parties.

     C.   Successors and Assigns.  This Agreement shall be binding upon and
          -----------------------
          inure to the benefit of Kreisler, RCC, and each of their respective
          successors and assigns (including, but not limited to, any lender of
          Kreisler that succeeds to the interest of Kreisler and any purchaser
          of substantially all of Kreisler's assets). RCC shall be responsible
          for its representations, warranties, duties, obligations, and
          responsibilities under the Agreement. Notwithstanding anything to the
          contrary contained herein, RCC may not assign its rights or
          obligations under this Agreement without the prior written consent of
          Kreisler, which consent may be denied for any or no reason whatsoever.

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

     E.   Captions and Headings.  The captions and headings throughout this
          ----------------------
          Agreement are for convenience and reference only, and the words
          contained therein shall in no way be held or deemed to define, limit,
          describe, modify, or add to the interpretation, construction, or
          meaning of any provision of or scope or intent of this Agreement.

     F.   Severability.  If any provision of this Agreement, or application
          -------------
          thereof to any person or circumstance, shall to any extent be
          determined to be invalid, then such provision shall be modified, if
          possible, to fulfill the

                                       49
<PAGE>

          intent of the Parties as reflected in the original provision. The
          remainder of this Agreement, or the application of such provision to
          persons or circumstances other than those as to which it is held
          invalid, shall not be affected thereby, and each provision of this
          Agreement shall be valid and enforced to the fullest extent permitted
          by law.

     G.   No Waiver.  No waiver by either Party of any default by the other
          ----------
          Party in the performance of any provision of this Agreement shall
          operate as or be construed as a waiver of any future default, whether
          like or different in character.

     H.   Counterparts.  This Agreement may be executed in any number of
          -------------
          counterparts, all of which together shall constitute one original
          Agreement.

     I.   Rule of Construction.  The Parties hereto acknowledge that they each
          ---------------------
          enter into this Agreement after having had an opportunity for thorough
          review by, and on advice of, their respective legal counsel. The
          judicial rule of construction requiring or allowing an instrument to
          be construed to the detriment of or against the interests of the maker
          thereof shall not apply to this Agreement.

     J.   Attorneys Fees.  In the event of any dispute between the Parties
          ---------------
          hereto not involving third party claims to which the indemnity
          applies, the Prevailing Party in such dispute shall be entitled to
          recover from the other reasonable attorneys fees, disbursements, and
          costs incurred directly in connection with such dispute and the
          resolution thereof. The "Prevailing Party," for

                                       50
<PAGE>

          purposes of this Agreement, shall be deemed to be the Party which
          obtains substantially all of the result sought, whether by dismissal,
          award or judgment. In no event shall a Party bringing any claim,
          demand , arbitration or suit for monetary damages be entitled to
          recover attorneys fees where any final award or judgment does not
          exceed a bona-fide offer of settlement or judgment made by the other
          Party.

     K.   Survival
          --------

          The following Sections shall survive Termination or Expiration of this
          Agreement: Section 15 Insurance, Section 21, Indemnitees, Section 24,
          Confidentiality, Records Retention and Reporting, Section 7C,
          Successors and Assigns.

                                       51
<PAGE>

          Executed by the undersigned duly authorized representatives to be
effective as of the Effective Date set forth above.

     RCC, Inc.

     By:___________________________________

     Title:  President
            ----------

     Date:_________________________________

     Kreisler

     By:___________________________________

     Title:________________________________

     Date:_________________________________

                                       52

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00030-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00030-of-00352.parquet"}]]