LETTER 18

Overtime Distribution

Mr. James M. Parent

Assistant Directing Business Representative

District Lodge No. 26

I.A.M.A.W., AFL-CIO

365 New Britain Road

Kensington, Connecticut 06037

Dear Mr. Parent:

This is to confirm the understanding and agreement between the Company and the Union concerning disparities in overtime distribution.  The parties recognize that disparities in overtime distribution are often complex and may be the result of a number of unrelated factors.

Therefore, during the first quarter of 2005, a meeting will be held to review disparities in overtime distribution in order to gain common understanding of the issue and to establish detailed action plans to remedy inequities where appropriate.  At this meeting the company representatives will include the Senior Vice President, Module Centers & Operations, the Senior Vice President & General Manager, Aftermarket Services, the applicable General Managers, the Vice President, Industrial Relations and applicable Human Resource managers.  Attendees for the Union will include the Directing Business Representative, or his or her designee and the Local Lodge Presidents.

If instances of substantial disparities in overtime distribution persist, the Union may take such cases to the Executive Steering Committee.

Sincerely,

James R. Miller

Vice President, Industrial Relations

Accepted this 6th day of December 2004