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                                                                    EXHIBIT 10.5



















                             NEENAH FOUNDRY COMPANY

                                    1996-1998

                         COLLECTIVE BARGAINING AGREEMENT

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                                    1986-1988

                                    AGREEMENT

         THIS AGREEMENT is made and entered into between the NEENAH FOUNDRY
COMPANY, NEENAH, WISCONSIN, party of the first part, and LOCAL 121 B of the
GLASS, MOLDERS, POTTERY, PLASTICS, and ALLIED WORKERS INTERNATIONAL UNION,
affiliated with the AFL-CIO-CLC, party of the second part.

         The Company and the Union will comply with all applicable Federal and
State Statutes concerning discrimination in employment. Wherever the words he,
him, his or other such male gender references appear in this Agreement, such
references shall include and will apply equally to the female gender.

                             ARTICLE 1 - RECOGNITION

         1.1 The Company recognizes Local 121B of the Glass, Molders, Pottery,
Plastics, and Allied Workers International Union, AFL-CIO-CLC, as the sole
bargaining agency for all employees of the Company's Plants 2 and 3 and any
truck terminals established now or during the period of this Agreement, relative
to wages, hours, and working conditions as provided by the National Labor
Relations Act, as amended, but excluded office-clerical, office janitors,
watchmen, patternmakers and supervisors as defined by the National Labor
Relations Act. The Company's Plants 2 and 3 shall be considered as a single
bargaining unit for purposes of this Labor Agreement.

                  A. It is understood that this Agreement will apply to any
Bargaining Unit employee assigned to perform work at Plant 1.

         1.2 In the event the Company erects a new foundry facility in the State
of Wisconsin, the Company will voluntarily recognize the Union as the bargaining
representative of the appropriate bargaining unit of employees consisting of
production, maintenance, shipping and receiving and truck driver employees.

                  A. In the event that the foregoing paragraph may not be
lawfully applied, then in that event, the Company will voluntarily recognize the
Union for the appropriate bargaining unit, as described above, upon a proper
showing of majority representation as demonstrated by a lawful card check
conducted under the authority of the NLRB.

         1.3 All present employees and all new employees shall join and become
members of the Union no later than their 31st day of employment or no later than
31 days after the execution of this Agreement, whichever is later, and shall, as
a condition of employment, maintain their membership in the Union in good
standing for the duration of this contract, subject to the provisions of the
Labor Management Act, as amended.


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         1.4 The Company agrees to check off the Initiation Fees and Union Dues
of such employees who authorize the same, in writing, in proper legal form. The
Company will remit the International Union's portion of all dues so collected
the first payday of each month and the Local Union's portion of all dues so
collected the first payday of each month, to the parties designated by the Union
by the 12th day of each month. The written authorization for check-off of dues
by any employee will not be effective for any dues or fees owing by such
employee prior to the date of the signed authorization executed by him and
delivered to the Company and will be effective the first payday of the month
following the delivery of such signed authorization to the Company.

                            ARTICLE 2 - HOURS OF WORK

         2.1 Eight (8) hours shall constitute a day's work and there shall be a
recognized starting and quitting time which shall determine the overtime, if
any.

         2.2 Except as hereinafter provided, all time in excess of eight (8)
hours in any one day or forty (40) hours in any one week, shall be paid for at
the rate of one and one-half times the regular hourly earnings computed on the
basis of the average straight time weekly earnings excluding overtime premium of
any kind and pay received for hours not worked. Such overtime shall be paid for
time in excess of eight (8) hours in any one day or forty (40) hours in any one
week, whichever is greater but not for both, so that payment of overtime rates
shall not be duplicated for the same hours worked.

                  A. Where eight (8) hours appears in Article 2.2, it shall be
changed to ten (10) hours for employees working on automated production system
operations when they are scheduled for four, ten-hour days in a week.

         2.3 SATURDAY WORK is to be paid at the rate of one and one-half times
the regular rate. However, if the shift begins on Friday and extends into
Saturday the regular rate shall be paid.

         2.4 SUNDAY WORK - All work performed from 12:00 A.M. Sunday to midnight
Sunday shall be paid at the rate of double the regular rate.

         2.5 All employees will be allowed a paid ten (10) minute lunch period
at an established time during each scheduled shift. The dinner period shall be a
minimum of one-half (1/2) hour, unpaid.

                  A. For automated and/or continuous production systems,
including BMD and Disamatic Operations as well as continuous shifts such as
melting operations, employees will be provided twenty (20) minutes of total paid
break time during each shift if an unpaid dinner period is not provided.

                  B. For automated production systems with a schedule of four,
ten-hour shifts, an additional ten (10) minute break period will be provided.


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                  C. All employees scheduled for ten (10) hours or more and who
are provided with 20 minutes of total paid break time instead of an unpaid
dinner period will be provided an additional ten (10) minute break period.

         2.6 Any employee who is required to start his work shift before his
regular starting time shall be permitted to work until his regular quitting
time.

         2.7 It is mutually agreed that the working hours and overtime schedule
provided for in this Agreement shall be governed by all applicable Federal laws.

         2.8 REPORTING PAY - When employees are required to report to work or
have not been advised at the end of the previous day that there will be no work,
they shall be given a minimum of four (4) hours employment or a minimum of four
(4) hours pay at their regular straight time hourly earnings, before being
dismissed for the day, provided, however, that the Company shall not be liable
under this section for unavoidable breakdowns of machinery, power failure, Acts
of God, or conditions beyond the control of the Management.

         2.9 CALL-IN PAY - If an employee is notified after he has punched out
for the work day, that he is to report for work at any time earlier than the
scheduled start time of his next shift, he shall be paid two (2) hours straight
time call-in pay at his regular base rate, in addition to pay at the appropriate
rate for his actual time worked.

                  A. An employee on Company premises prior to his scheduled
shift start time who volunteers and is permitted to perform work before the
shift start time will not qualify for call-in pay.

         2.10 OVERTIME NOTIFICATION - Notice of scheduled Saturday or Sunday
overtime will be given to the employees) affected by no later than the end of
his (their) scheduled shift on Thursday preceding the weekend.

                  A. When the schedule of a department is to be changed, the
Company shall notify the department employees) affected prior to the end of his
(their) shift on the preceding day.

                  B. Employees may be notified by bulletin board notice and/or
personal communication. Employees so scheduled to work will be expected to work
as scheduled unless excused in advance by their supervisor. Should the Company
fail to provide such advance notice Of weekend or department schedule changes,
the employee or employees affected are free to reject the opportunity to work at
the time it is offered.

                  C. It is understood that the preceding paragraphs are not
applicable to casual or emergency overtime on a daily basis.

                              ARTICLE 3 - VACATIONS


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         3.1 The Company will grant paid vacations to employees covered by this
contract during each year as follows:

                  A. Except as hereinafter provided, each employee on the active
payroll on June I in any year who has completed one (1) year or more of
continuous service shall be granted a paid vacation.

                           1.       Employees with one year but less than three
                                    years of service on June I will be entitled
                                    to one week of vacation.

                           2.       Employees with three years but less than
                                    eight years of service on June I will be
                                    entitled to two weeks of vacation.

                           3.       Employees with eight years but less than
                                    fourteen years of service on June I will be
                                    entitled to three weeks of vacation.

                           4.       Employees with fourteen years but less than
                                    twenty years of service on June I will be
                                    entitled to four weeks of vacation.

                           5.       Employees with twenty years but less than
                                    twenty-eight years of service on June I will
                                    be entitled to five weeks of vacation.

                           6.       Employees with twenty-eight years or more of
                                    service on June I will be entitled to six
                                    weeks of vacation.

         3.2 June 1 shall be the anniversary date for all employees for the
purpose of determining vacation eligibility. Employees hired on or after June 1
and before November 1 shall have June 1 as an anniversary date for purposes of
becoming eligible for more than one week of vacation.

         3.3 The vacation pay basis period shall be the last fifty-two (52) week
period ending before May 18.

         3.4 Each week of vacation shall be one calendar week. Each week of
vacation pay shall be two percent (2%) of the employee's gross earnings in the
basis period. However, an employee who has worked 1500 hours or more during the
basis period shall have the option of receiving forty (40) hours of pay at his
regular straight time base rate for each week of vacation. Time lost as a result
of compensable injury incurred while on duty at Neenah Foundry Company shall be
included in hours worked, at the rate of eight (8) hours per work day, for
purposes of determining vacation pay eligibility.

         3.5 The vacation year shall be June I through May 31. The Company
reserves the right to establish a vacation shutdown period of up to two weeks in
any vacation year for any or all of its operations. The Company shall notify the
Union of its selection prior to April I of each year. All


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employees affected must schedule at least one week of their vacation during the
first vacation shutdown.

                  A. It is understood that if the plant closes, a certain amount
of maintenance and/or production work may be carried on during the shutdown. The
Company will arrange with employees who are to work during the shutdown period.

                  B. Those employees who are entitled to more than one week
vacation shall arrange for the additional vacation time by agreement with the
Plant Manager. No employee entitled to two weeks or more vacation shall have his
remaining vacation scheduled immediately before or after the scheduled vacation
shutdown period except by mutual agreement with the Company.

                  C. Employees eligible for three or more weeks of vacation
shall have the option of accepting vacation pay only for weeks over two, instead
of taking time off, by mutual agreement with the Company and the Union
President.

         3.6 Vacation requests shall be considered on the basis of Company
seniority, providing normal operations of the Company are not impaired. There
will be a vacation sign-up period each year January 1 through January 15 for the
vacation year commencing the next June 1. Vacation requests received during this
sign-up period, after approval, are not subject to change through exercise of
seniority by other employees. Vacation requests made after the sign-up period
shall be submitted to the Company in writing at least thirty (30) days prior to
the requested vacation period. To insure normal operations, the Company shall
have the right to limit the number of employees taking vacation simultaneously.

                  A. During the sign-up period, each employee in each vacation
group will be asked, in Company seniority order, to submit his vacation request.
Any employee failing to submit his vacation request at the time he is asked will
not be eligible to use the vacation sign-up period for that vacation year.

                   EMPLOYEES WITH LESS THAN ONE YEAR'S SERVICE

         3.7 Any employee who has been continuously employed for three months or
more and who is on the active payroll on June I shall be granted vacation pay,
which shall be two percent (2%) of his gross earnings as vacation pay for such
period, as computed above.

                    LAYOFF, MILITARY LEAVE, RETIREMENT, DEATH

         3.8 In the event any employee who was eligible for vacation pay on June
1 is laid off, enters military service, retires, or dies during the vacation
ear, he shall receive his unused vacation plus pro-rata vacation pay in the
amount of two percent (2%) of his gross earnings up to and including the date of
termination, for each week of vacation for which he would otherwise have
qualified.


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                EMPLOYEES RETURNING FROM MILITARY LEAVE OR LAYOFF

         3.9 Any employee who returns from Military Leave or Layoff and who is
on the active payroll June I shall be entitled to a vacation computed the same
as any other employee on the active payroll June 1.

                              ARTICLE 4 - SENIORITY

         4.1 Seniority of employees shall be on the basis of length of
employment. In the event of scarcity of work necessitating reduction in the size
of the total work force, the last man hired shall be the first laid off, and
such layoffs shall be in accordance with straight seniority until the work force
has been reduced to two thirds of the average employment for the twelve (12)
months preceding the last layoff. After such layoffs according to seniority, the
Company may deviate from straight seniority if by following the rule of straight
seniority the efficient operation of the plant(s) would be impaired. If the
Company proposes to deviate, it will discuss all such deviations with the Union
Business Committee and if agreement is reached, deviations shall be as agreed
upon. If no agreement is reached, the Company will be at liberty to make such
deviations and in any event all employees affected by such deviations shall have
the right of grievance pursuant to the grievance procedure outlined in the
contract.

                  A. The above is applicable to Maintenance Department
employees, Electrical Maintenance Department employees, and Over-the-Road
Drivers only if the layoff of the employees would exceed sixty (60) days.

         4.2 All new employees shall serve a probationary period of sixty (60)
days worked. Probationary employees shall have no seniority rights and may be
released at any time prior to the expiration of their probationary period.
However, the Company may not discharge or discipline for the purpose of evading
this Agreement or for the purpose of discriminating against Union members. If
they are retained at the expiration of their probationary period, their Company
seniority shall be from the date of hire. Departmental seniority will begin at
the completion of the probationary period. The Union may represent such
probationary employees on wages, hours and conditions of employment, but it is
agreed that the termination of employment of such employees during the
probationary period shall not be subject to the grievance procedure or
arbitration.

         4.3 Student workers hired for the purpose of working during school
vacation period shall not be required to join the Union and shall not be
eligible for any fringe benefits and will accumulate no seniority. When a
student becomes a regular full-time employee, his seniority begins as of the
date of change in his work status.

         4.4 Part-time workers who are employed on a regular basis throughout
the year but are normally scheduled for short hour weeks shall be required to
Join the Union pursuant to Article 1 and shall acquire seniority only as it
relates to other part-time workers and shall be entitled to eligibility for
vacations on a percentage of pay basis only and paid holidays on a pro-rata
basis and


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excluded from all other fringe benefits. In the event a part-time worker becomes
a regular full-time employee he shall be entitled to one week of retroactive
seniority for each 40 hours of work employed on a part-time basis.

         4.5 Prior to laying off any regular employees, students and
probationary employees shall be laid off first and part-time employees shall be
laid off next if additional layoffs are necessary.

         4.6 Under no conditions shall new employees be added to the payroll
before those on layoff are notified to return to work. New employees shall not
be added to the payroll during short work weeks.

         4.7 When a vacancy occurs, prior to posting such vacancy, available
employees qualified to fill the vacancy who are within that department and plant
will be given the opportunity to change their shift, by virtue of department
seniority. it is understood, so as not to impair normal operations, that from
time to time it may be necessary to reassign senior employees temporarily to
other shifts or temporarily delay the above shift change assignment pending the
training of employees.

         4.8 On recall to work the most senior employee on active layoff will be
the first called to work and the remainder of the employees on the active recall
list will be recalled in the same manner.

                  A. The Company may deviate from recalling employees on a
straight seniority basis by recalling people qualified to perform necessary work
for Maintenance Mechanics, Maintenance Electricians, and Over-the-Road Drivers
(in their seniority order) if by following the rule of straight seniority the
efficient operation of the plant(s) would be impaired. If the Company proposes
to deviate, it will discuss all such deviations with the Union Business
Committee and if agreement is reached, deviations shall be as agreed upon. If no
agreement is reached, the Company will be at liberty to make such deviations and
in any event all employees affected by such deviations shall have the right of
grievance pursuant to the grievance procedure outlined in the contract.

         4.9 In the event of layoff or layoffs due to lack of work, the
employees affected and the Union Business Committee Chairman shall be given
written notice of at least two (2) days prior to such layoffs.

                  A. When an employee can no longer perform the essential
functions of their assigned job, due to permanent medical restrictions, and they
are placed on medical leave, the Company will notify the Union President, in
writing, within two (2) working days of such leave.

         4.10 Members of the Union, who hold positions that require part of
their functions to perform in the capacity of "Steward-like Duties", shall be
granted Super Seniority in the case of lay-off. Super Seniority shall be limited
to thirty (30) members or 5% of the average bargaining unit employment for the
previous six (6) months, whichever is greater. It shall be the responsibility of


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the Union Recording Secretary to notify the Company, in writing, as to who shall
be granted Super Seniority.

                                LOSS OF SENIORITY

         4.11 An employee shall lose his seniority for the following reasons
only:

                  A. If he shall quit.

                  B. If he shall have been discharged for just cause.

                  C. If a laid-off employee or employees on leave of absence
shall fail to report for work within five (5) working days after notice was-
sent by the Company to his last known address, unless a satisfactory reason for
failure to report is given. A copy of such notice to report to work is to be
given to the Union President.

                  D. If an employee has been laid off for a period equal to his
length of service with the Company. However, the minimum shall be one (1) year
and the maximum three (3) years.

                       SPECIAL PROCEDURE TO FOLLOW DURING
                                SHORT WORK WEEKS

         4.12 The purpose of this procedure is to afford senior qualified
employees an opportunity to replace students, probationary, and part-time
employees on those days when the work week schedule is reduced to less than five
(5) days due to economic conditions. The number of senior qualified employees
given this opportunity must be consistent with production requirements.

         A. When the Company determines it is necessary to reduce the work
schedule to less than five (5) days (excluding holiday weeks) in a department or
a plant for two consecutive weeks or more, the following procedure will be
followed:

                           1.       The Company shall meet with the Union
                                    Business Committee on the day following the
                                    decision to implement the short weeks, and
                                    notice of the short work weeks shall be
                                    posted no later than Wednesday preceding,
                                    the first short work week.

                           2.       Beginning with the first week of the reduced
                                    work schedule, a list of jobs occupied by
                                    student, probationary, and part-time
                                    employees will be prepared. A senior
                                    employee who is on the reduced work schedule
                                    in his own department or plant will be asked
                                    to work a listed job on the day or days when
                                    he is not scheduled in his own department or
                                    plant. Selection will be by seniority,
                                    experience and ability. The number of senior
                                    qualified employees selected shall be
                                    limited to the


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                                    number of student, probationary, and
                                    part-time jobs. The student, probationary,
                                    or part-time employee so replaced will then
                                    work the reduced schedule in his own
                                    department or plant.

                           3.       Beginning with the second consecutive week
                                    of the reduced work week schedule, part-time
                                    employees will be offered regular full-time
                                    work, if available. If the part-time
                                    employee declines the offer or full-time
                                    work is not available, he shall be
                                    terminated.

                           4.       A senior qualified employee who agrees to
                                    work shall be paid the higher of his regular
                                    base rate or the base rate of the . ob to
                                    which he is assigned, plus incentive, if
                                    any. If such employee fails to report for
                                    work without just cause, the absence shall
                                    be treated as an unauthorized absence.

                           5.       During the fourth consecutive week of the
                                    reduced work schedule, Management and the
                                    Union Business Committee shall meet for the
                                    purpose of reviewing the reduced work week
                                    schedule, and to discuss the future outlook.

                           6.       The foregoing is not a guarantee expressed,
                                    implied or otherwise, that the Company will
                                    operate on a five-day work schedule or 40
                                    hour work schedule.

                  SPECIAL PROCEDURE TO FOLLOW DURING SHORT-TERM
                         SHUTDOWNS OF ONE OR MORE PLANTS
                         OR PARTS OF ONE OR MORE PLANTS

         4.13 The purpose of this section is to set forth the procedure to be
followed when all or part of one or more of the Company's plant operations are
scheduled to be shut down due to economic conditions for one week or two
consecutive weeks, excluding vacation shutdown periods.

                  A. The Company shall inform the Union Business Committee of
the decision to schedule as indicated above on the day following the day the
decision is made.

                  B. The Company shall schedule the employees needed in the
plant(s) that is shut down according to the following procedure:

                           1.       Schedule the necessary work.

                           2.       Schedule the job(s) necessary to accomplish
                                    the scheduled work.

                           3.       Schedule the people who normally perform the
                                    job(s) that is scheduled.


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                           4.       Replace all summer, part-time and
                                    probationary employees with regular
                                    full-time employees.

                           5.       If all the people who normally perform the
                                    jobs scheduled are not needed, then schedule
                                    employees who have the most Company
                                    seniority who normally perform those jobs.

                           6.       If more people are needed than normally
                                    perform the scheduled job, then schedule the
                                    employees) assigned to that plant most
                                    qualified to perform that job. If two or
                                    more employees are equally qualified, then
                                    schedule the employees) who has the most
                                    Company seniority within that plant.

                  C. When the Company determines it is necessary to extend the
shutdown or partial operations in a plant for more than two consecutive weeks
(excluding vacation shutdown periods) it will follow the provisions of Article
4.1.

                  D. The intent of this procedure is to provide work to as many
employees as we have work available for, rather than having to shut down
additional operations in order to meet the deviation requirements provided for
in Article 4.1.

                             ARTICLE 5 - GRIEVANCES

         5.1 It is recognized that from time to time, incidents may occur or
events may take place which question the interpretation of the provisions of
this Agreement. It is the intent of the parties to this Agreement to promptly
investigate and resolve differences of opinion or job-related problems.
Accordingly, each employee is encouraged to discuss with his supervisor any
problem that may arise in connection with his work. The Company will not
discriminate against any employee for thereafter referring the problem as a
grievance through the grievance procedure.

         5.2 Should differences arise between the Company and its employees,
either individually or collectively, as to the meaning and application of this
Agreement, an earnest effort shall be made to settle any such differences at the
earliest possible time by use of the following grievance procedure:

Step 1.           a. As soon as possible but not more than ten (10) working
                  days of the occurrence of the incident or condition giving
                  rise to any grievance, an aggrieved employee shall present his
                  grievance to his supervisor, accompanied by his Committeeman
                  or Steward. If a settlement is not reached within two (2)
                  working days from the time the grievance is presented, then;

                  b. It shall be reduced to writing within two (2) working days,
                  signed by the aggrieved employee or his representative, and
                  presented to the supervisor, who will provide a written answer
                  within three (3) working days of the receipt of the written
                  grievance. Should this procedure not result in settlement,
                  then;


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Step 2.           Within two (2) working days of receipt of the Supervisor's
                  Step 1 written answer, the grievance shall be presented by a
                  member of the Shop Stewards Committee to the Plant Manager or
                  his representative, who will schedule a grievance hearing to
                  be held within three (3) working days following receipt of the
                  Step 2 grievance, and who will within three (3) working days
                  of such meeting, provide his written answer to the grievance.
                  If such answer does not result in settlement of the grievance,
                  then;

Step 3.           Within two (2) working days of the receipt of the Step 2
                  written answer, the grievance shall be referred to the Union
                  Business Committee and the Company Committee, who will meet on
                  a date satisfactory to both parties, within ten (10) working
                  days following receipt of the Step 3 grievance to resolve the
                  issue. Either or both parties may be represented at this
                  meeting by outside representatives of their own choosing.
                  Within three (3) working days of such meeting, the Company
                  will provide a written answer to the Grievance.

Within the times outlined above, the meetings will be scheduled on a date
satisfactory to both parties. In the event that this procedure does not result
in settlement of the Grievance, then;

Step 4.           Within forty (40) days from the date of the Step 3 answer,
                  the grievance may be referred by either party to arbitration
                  by serving written notice on the other. If either party fails
                  to refer an unresolved grievance to arbitration within the
                  forty (40) day period, the grievance shall be considered
                  withdrawn and not arbitrable.

         5.3 The Union Business Committee and the Company Committee referred to
above in Step 3 shall consist of a maximum of nine (9) employees each,
designated respectively by the Union and the Company.

         5.4 The time limits referred to above may be accelerated, or extended,
or any step of the procedure may be continued upon mutual agreement of the
parties to this Agreement. If the Union fails to comply with the time
requirements in Steps lb, 2, or 3, the grievance shall be automatically dropped.
If the Company fails to comply with the time requirements in Steps lb, 2, or 3,
the grievance shall be automatically granted.

         5.5 An agreement reached between the committees shall be final and
binding on the Company, the Union and the employees involved.

                             SELECTION OF ARBITRATOR

         5.6 The Arbitrator for the purpose of this contract, shall be selected
in the following manner, to wit:

                  A. In the event a grievance has not been resolved under Step 3
of this Article, either party may notify the Federal Mediation and Conciliation
Service of the dispute and request


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a panel of seven arbitrators. If the panel is not acceptable to either party,
then either party shall request a second panel, prior to striking any names from
the first panel. The parties will select one arbitrator, by alternately striking
from the panel a total of six arbitrators. The Arbitrator chosen by this
procedure will then arbitrate the grievance. More than one grievance may, by
mutual agreement, be submitted simultaneously to the same Arbitrator.

         5.7 The Arbitrator shall have no authority to change or modify the
terms of this Agreement, but he shall have authority to apply or interpret the
meaning of the terms of this Agreement, and resolve all grievances referred to
him under the terms of this Agreement.

         5.8 Within a reasonable time after the hearing the Arbitrator shall
tender to the parties his disposition of the grievances involved. Such
disposition shall be final and binding upon both parties.

         5.9 The Arbitrator's charge and expense in connection with any
grievance submitted to arbitration shall be borne by the party losing the
arbitration.

         5.10 The Company shall compensate Union officers and members of the
Business and Shop Stewards committees at their average straight time hourly
earnings, and individual aggrieved employees at the straight time hourly base
rates at which they are then employed, for all time actually spent with
representatives of the Company in collective bargain' nations and Grievance
adjustments pursuant to this Agreement, when the officers, committeemen and
employees so engaged otherwise would be at work. Time spent in negotiations and
grievance ad' handled outside of the normal working adjustments handled outside
of the normal working day will not be paid by the Company. Negotiations and
grievance adjustment meetings will be scheduled by the Company and may be held
during regular working hours. The number of employees in attendance at
bargaining and Grievance meetings shall be scheduled to the extent that the
number of employees attending such meetings shall not interfere with normal
production.

                      ARTICLE 6 - DISCHARGE AND DISCIPLINE

         6.1 The Company agrees not to discharge or suspend any of its employees
except for In the event of discharge or just cause. In the event of discharge or
suspension, the Company agrees to give the Shop Stewards Assistant written
notice of such discharge or discipline, stating the reason therefor. Such notice
shall be delivered to the Union within twenty-four (24) hours of the occurrence
of such event. Any employee who is discharged or suspended under the provisions
of this contract shall have the right of grievance as provided herein.

         6.2 Grievances involving discharge shall enter the grievance procedure
at Step 3.

         6.3 It is further agreed that in all cases of discharge or suspension,
if the employee or employees affected desire to file a grievance, he must file a
written grievance immediately or at least within ten (10) days of such discharge
or discipline. In the event it is decided that an employee was


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unjustly discharged or suspended, he shall be reinstated to his former position
without loss of seniority and reimbursed for all time lost while under discharge
or suspension, unless some other agreement is reached between the Company and
the Union Business Committee.

         6.4 Unexcused absence for three (3) or more consecutive working days
shall be considered grounds for discharge or discipline.

         6.5 Employees who receive three written warning notices on unexcused
absences for periods less than indicated in Section 6.4 above, within twelve
(12) consecutive months, shall be given a three-day suspension from duty without
pay. More than three written warning notices on unexcused absences, for periods
less than indicated above in Section 6.4 within twelve (12) consecutive months,
shall be considered just cause for discharge or discipline. As a written warning
notice is issued, one copy shall be delivered to the employee and one copy to
the Union Shop Steward Assistant within 24 hours of the time such warning is
issued.

         6.6 Written warning notices for any disciplinary reasons shall remain
in effect for twelve (12) months from date of issuance. Written warning notices
more than twelve (12) months old shall not be used against the employee in
future progressive discipline.

                                ARTICLE 7 - WAGES

         7.1 The Company and the Union hereby agree that the minimum wage rates
for each job classification are as set forth in the attached schedules marked
Exhibit "A" entitled "Minimum Rates" and Exhibit "D" entitled "Trucking" and
will be effective for the periods indicated during the term of this Agreement.

         7.2 For shift premium pay purposes only, the hours of the first shift
will be 6:00 A.M. to 2:00 P.M.; the second shift will be from 2:00 P.M. to 10:00
P.M.; and the third shift will be from 10:00 P.M. to 6:00 A.M. The employee will
be paid the shift premium applicable to the shift on which he works the majority
of hours. Shift premiums will be 250 per hour for the second shift and 35(cent)
per hour for the third shift.

         7.3 All employees shall be paid weekly on Thursday during their regular
shift. If a Holiday occurs, the payday may be advanced or delayed within the
same work week, Saturday excluded.

         7.4 The Contract rates shown in Exhibits "A" and "D" are minimum rates,
and are guaranteed.

                            WAGE INCENTIVE PROVISIONS


                                       13
   15
         7.5 The Company agrees to establish incentive plans on the basis of
fairness and equity consistent with the quality of workmanship, efficiency of
operations and reasonable working capacities of normal operators working at
incentive pace.

         7.6 Other matters pertaining to production standards or incentives
shall be contained in a supplementary agreement. Such agreement, attached to
this contract as Exhibit "C," shall become a part of this contract and a part of
each individual incentive plan.

                                  PAID HOLIDAYS

         7.7 Effective during the life of this contract the Company will pay
holiday pay for the following holidays: New Year's Day, Good Friday, Memorial
Day, Independence Day, Labor Day, Thanksgiving Day, Day following Thanksgiving
Day, Christmas Eve Day, Christmas Day, a "floating holiday" to be scheduled by
the Company annually, and New Year's Eve Day. Such pay is to be eight (8) hours
at the average straight time hourly earnings, and all employees covered by this
Agreement, performing service, except those who have not completed their
probationary period, will be entitled to paid holidays.

                  A. The Company will pay ten (10) hours (in lieu of 8) holiday
pay at average straight time hourly earnings to all employees who are working
four, ten-hour shifts on all auto mated systems the week before and/or the week
after and the week of the holiday(s).

                     When a holiday(s) falls during a scheduled vacation
shutdown week, the Company will pay ten (10) hours holiday pay to all employees
who are working four, ten-hour shifts on all automated systems the week before
and/or the week after the holiday(s).

                  B. All work performed on any of the holidays recognized in 7.7
or on the day celebrated in lieu thereof, such as when a holiday falls on Sunday
and is celebrated on Monday, shall be paid for at the rate of double (2) time.
If a shift starts during a holiday and extends into a non-holiday period, all
hours worked on such shift shall be paid for at double time. The above premium
pay for time worked shall be in addition to holiday pay.

                  C. To qualify for holiday pay an employee who is scheduled to
work must have worked his last scheduled work shift prior to and his first
scheduled work shift after such holiday unless excused by the Plant Manager for
personal compelling reasons.

                  D. Employees who have been laid off because of lack of work
within fifteen (15) days immediately prior to the date of the holiday, or who
after having been laid off are recalled to work within fifteen (15) days after
the date of the holiday shall be eligible for holiday pay.

                       ARTICLE 8 -TRANSFERS, JOB POSTINGS,
                                 AND PROMOTIONS


                                       14
   16
                               TEMPORARY TRANSFERS

         8.1 When any employee is temporarily transferred by the Company for a
period of one week or less, he shall be paid the base rate of his regular job or
the base rate of the temporary job, whichever is higher, plus any applicable
shift premium. If the employee is not returned to his regular job after one
week, and his temporary transfer is renewed, he will continue to be paid the
base rate of his regular job or the base rate of the temporary job, whichever is
higher, plus any applicable shift premium. While on temporary transfer, the
employee will continue to accrue seniority in his home department.

         8.2 When any employee is temporarily transferred at his own request, he
shall be paid the base rate of the temporary job, plus any applicable shift
premium.

         8.3 For the purpose of protecting the earnings of senior incentive
employees who are temporarily transferred by the Company, the following
procedures will be used:

                  A. When any incentive employee is temporarily transferred to
another department while any employee with less departmental seniority performs
incentive work in the department (defined in 8.4, E below) of the transferred
employee, such transferred employee will be paid his average earnings or his
earnings on the temporary job, whichever are higher.

                  B. When any incentive employee is temporarily transferred
within his department to another Work Section (defined in 8.4, F below) while
any employee with less departmental seniority performs incentive work in the
Work Section of the transferred employee, the transferred employee will be paid
his average earnings or his earnings on the temporary job, whichever are higher.

                  C. However, if any incentive employee is temporarily
transferred as a result of machinery breakdown which occurs during his scheduled
shift, he will be paid base rate of his regular job or the base rate of the
temporary job, whichever is higher, plus any applicable shift premium, but not
average earnings.

                         TRANSFERS OTHER THAN TEMPORARY

         8.4 In the event an employee is transferred as provided for below, he
shall be paid the rate of the Job to which he is transferred, effective on the
date of transfer.

                  A. When it is necessary to reduce the number of employees in a
department, the last man assigned to the department shall be the first selected
for transfer. Such employee transferred out of the department shall have the
right to transfer back to his last department, except he shall not replace any
employee in his former department who has greater departmental seniority. If his
last department is not open to him by application of departmental seniority, he
will be assigned to available work within the Company.


                                       15
   17
                  B. Any employee who is displaced from his department as a
result of the foregoing procedure shall also have the right to transfer back to
his former department in the same manner.

                  C. When the department or departments increase the number of
employees required in such department, the employees transferred out by the
operation of the above paragraphs shall be first entitled to transfer back to
the original departments from which they were transferred. If employees elect
not to exercise their department seniority rights in the application of this
paragraph (8.4, C), they will lose seniority rights in all departments and will
be assigned to available work within the Company.

                  D. Whereas the above paragraphs consider the usual and normal
transfer procedures, it is recognized that from time to time unforeseen or
unusual conditions may occur which may require deviations. Deviations proposed
by either party, shall be discussed between the Company and the Union Business
Committee and shall include such factors as employee's ability and efficiency of
operation. If no agreement is reached, the Company will be at liberty to make
such deviations, and in any event all employees affected by such deviation shall
have the right of Grievance pursuant to the grievance procedure outlined in this
contract.


                                       16
   18
                  E. For purpose only of administration of the above,
departments are defined, but not restricted, to the following:


                                       17
   19


                                                                       Plant 2         Plant 3
                                                                              
 1.      Hydro Slinger Molders........................................    X
 2.      BMD..........................................................    X
 3.      BMD Finishing................................................    X
 4.      Pourers......................................................    X
 5.      Other Molding Indirect.......................................    X
 6.      Chippers, Grinders, Fitters..................................    X
 7.      Bore, Mill and Drill Operators...............................    X
 8.      All Cleaning, Indirect.......................................    X
 9.      Shipping.....................................................    X
*10.     Maintenance..................................................    X               X
*11.     Electrical Maintenance.......................................    X               X
 12.     Over-the-Road Drivers........................................    X               X
 13.     Pattern Storage.............................................. Transport
*14.     Receiving and Stores.........................................    X
 15.     Inspection...................................................    X
 16.     Utility Truck Drivers........................................    X
 17.     All Others................................................... Transport
 18.     Disamatic System.............................................    X               X
 19.     Casting Processing...........................................                    X
 20.     Quality Assurance............................................                    X
 21.     Core Support.................................................    X               X
 22.     Core Operations..............................................    X               X
 34.     Melt.........................................................    X               X

*Combined all plants


                                       18
   20
                  F. For the purpose of administering temporary transfers, each
incentive employee is assigned to one of the Work Sections listed below.
Departmental Seniority shall be used to determine Work Section seniority, in the
employee's regularly assigned Work Section, to establish the relative seniority
of the transferred employee.

                                  WORK SECTIONS

                  PLANT 2

         1.       Hydro Slinger Molders
         4.       Pourers

                  Other Molding Indirect:
         5.       Shakeout
         6a.      Chippers, Grinders
         6b.      Fitters
         7a.      Bore, Mill Operators
         7b.      Radial Drill Operators
         9.       Shipping


                                       19
   21
                                   JOB POSTING

         8.5 All vacancies or new jobs are to be filled by the job posting
procedure with the following exceptions: Leadman, Janitor Labor, Core Room
Labor, Yard and General Labor, and Cleaning Room General. A vacancy occurs when
a new job is created and defined or an established job requires filling to meet
manpower planning requirements.

                  A. The Company will post the notice of the vacancy on the
bulletin board within three (3) work days from the date the vacancy becomes
official.

                  B. The vacancy will remain posted for three (3) work days
during which time interested employees who have passed their probationary period
may apply.

                  C. The Company shall make its selection within five (5) work
days after the posting is closed except in the cases of truck drivers and
maintenance and electrical maintenance employees. The employee selected and the
Union Shop Stewards Committee Assistants will be notified promptly in writing,
normally within two (2) working days, after selection is made.

                  D. The selected employee shall be transferred within one (1)
week from date of notification of selection, or receive the higher base rate of
his present or new job.

                  E. The employee's date of notification of selection shall be
the date the employee begins to accrue seniority in the new department.

                  F. The Company will post on the bulletin board weekly the
names of the previous week's successful bidders, their seniority dates and the
jobs for which they were selected.

                  G. Employees shall be limited to one (1) successful lateral or
downward bid each year from date of selection. There shall be no limit on bids
for promotions to higher base rate jobs.

                  H. If the Company selects an employee or employees for such
from the bargaining, unit such selection shall be made

         8.6 In the event a job or jobs are posted pursuant to 8.5 and no
application is made within the period set forth, the Company is at liberty to
fill the vacancy as it sees fit. The Company will advise the Union Shop Stewards
Assistants and President of the fact that no applications were filed.

                  A. If applications are made as herein provided and after
investigation the Company finds that the applicants are qualified or have
qualifications for the posted job, selection will be made from the applicants
whose applications are on file for the job, as provided in 8.5 hereof. Selection
shall be made within five (5) days after the expiration of posting. If, however,
the Company is satisfied that none of the applicants is qualified for the job in
question then it may fill such job by selection outside of the bargaining unit.
The Company shall give the Chairman of the


                                       20
   22
Union Business Committee a list of all the applicants who applied and the name
of the employee(s) selected to fill the posted job or jobs within two (2)
working days after selection is made, whether the selection is made from the
bargaining unit or not.

                  B. When an employee is involuntarily selected by the Company
in accordance with its right in the above paragraphs such employee will retain
and accumulate seniority in his prior department for all time worked in the job
to which he was involuntarily placed.

                  C. When an employee through job posting enters a new
department as defined in 8.4, E, he shall retain his departmental seniority in
immediate prior department until he has worked thirty (30) days. If for any
reason, it is necessary to return the employee to his former job during this
period, he will then do so with continued accumulated departmental seniority.
The employee shall lose all seniority in his former department the day after he
completes thirty (30) days worked in the new department, except in the
application of Section 8.4. New department seniority shall then be retroactive
to the first day of assignment to the new department.

         8.7 The employee or employees who file application for a job pursuant
to job posting notice and who are not selected and who desire to file a
grievance shall file such Grievance immediately but not later than ten (10)
working days from the date of selection notice. Such grievance shall be subject
to arbitration in accordance with the terms of this contract; but the grievance,
if filed, shall not prohibit the Company from filling the job.

         8.8 Any employee requesting transfer, other than temporary, out of a
department or into another department, without using the job posting procedure,
will forfeit all former department seniority rights when the transfer takes
place.

         8.9 The Company shall establish an apprenticeship and training program
in conformity with the State of Wisconsin Department of Industry, Labor and
Human Relations Apprenticeship Division for those in maintenance
classifications.

                  A. Apprentices must be indentured and attend the appropriate
school in accordance with the Wisconsin Apprenticeship Law, Chapter 106 and meet
all requirements as may be set up by the Wisconsin Department of Industry, Labor
and Human Relations and the Company.

                      TRANSFERS OUT OF THE BARGAINING UNIT

         8.10 Both parties agree to the principle of advancing employees to
positions outside the bargaining unit. In the event an employee so advanced is
demoted or requests demotion during the first year, he shall be promptly
returned to his former job at the going rate of pay with credited departmental
and Company seniority.

                  A. Employees previously advanced prior to January 1, 1972,
shall accrue departmental seniority for a maximum of three (3) years. Employees
advanced outside the


                                       21
   23
bargaining unit subsequent to January 1, 1972, shall continue to accrue
departmental seniority for a maximum of one year.

                     In the event there is a reduction in force the employee
shall be entitled to use his departmental seniority he had at the expiration of
the accrual period in order to return to the bargaining unit.

                  B. Employees advanced outside the bargaining unit subsequent
to January 1, 1993 who do not return to the bargaining unit during the first
year shall forfeit all departmental seniority rights.

                     In the event there is a reduction in force during the first
ten(10) years after an employee is so advanced, he shall be entitled to use his
Company seniority in order to return to the bargaining unit.

                     In the event there is a reduction in force subsequent to
ten (10) years after an employee is so advanced, he shall not be entitled to
return to the bargaining unit.

                  C. The employee's Company seniority shall continue to accrue
during the employee s entire period of employment with the Company.

                          ARTICLE 9 - LEAVES OF ABSENCE

         9.1 Employees desiring a leave of absence shall be required to make
written request for said leave of absence, outlining the reason for such
request. The granting of such request shall be by mutual written consent of the
Company and the Union Business Committee Chairman, in triplicate, the original
to be retained by the employee, the duplicate by the Company and the triplicate
by the Union. A leave of absence shall be granted to members designated by the
Chairman of the Union Business Committee for the purpose of attending
conventions and Union conferences. Employees on leave of absence shall accrue
departmental seniority for a maximum of one (1) year in addition to that already
accrued at the time of the leave.

         9.2 When members of the Union are serving full time on behalf of the
Union, or are selected to represent the International Union, necessitating a
leave of absence from the Company, the Company will grant such leave of absence
for up to three (3) years. Such leave of absence shall be automatically renewed
by request for up to a maximum of ten (10) years. Reasonable advance notice of
such leaves shall be given to the Company.

                  A. In the event an employee so serving the Union returns to
bargaining unit work during the first year, he shall be promptly returned to his
former job at the going rate of pay with credited departmental and Company
seniority.


                                       22
   24
                     In the event there is a reduction in force during the first
ten (10) years after an employee is so serving, he shall be entitled to use his
Company seniority to return to bargaining unit work.

                     In the event there is a reduction in force subsequent to
ten (10) years after an employee is so serving, he shall not be entitled to
return to bargaining unit work.

         9.3 The Local Union President shall be excused from work without pay
for the entire day on which the Union Local conducts its regular monthly
meeting, provided he notifies his department superintendent at least one day in
advance of the date of the meeting.

                  A. When it is necessary for the Local Union President to be
further absent from work without pay for Union business in addition to the day
of the regular monthly meeting, the Local Union President shall obtain approval
in advance from his department superintendent.

                             ARTICLE 10 - MANAGEMENT

         10.1 The management of the Company and the direction of the working
force including the right to hire, suspend or discharge for cause, to transfer
or lay off for lack of work or any other legitimate reason, to make and enforce
reasonable rules and regulations and in general, all other functions of
management unless limited by this Agreement, are reserved to and are vested
exclusively in the Employer, including any of the rights, power or authority the
Employer had prior to the signing of this Agreement.

                       ARTICLE 11 - NO STRIKE - NO LOCKOUT

         11.1 It is agreed that as a part of the consideration of this contract,
any and all disputes and any and all claims or demands growing out of said
contract or involved therein shall be settled and determined exclusively by the
machinery provided herein through the grievance procedure and that during the
term of this contract, there shall be no strike on the part of the Union nor
lockout on the part of the Company.

         11.2 It is specifically understood and agreed that the no strike clause
in the preceding paragraph shall not be operative under the following
circumstances: If at the expiration of this contract the parties are unable to
agree upon the terms or conditions of a renewal or modification thereof.

                           ARTICLE 12 - FUNERAL LEAVE

         12.1 In the event of death of an employee's brother, sister, father,
mother, step-father, stepmother, father-in-law, or mother-in-law, the employee
may be absent from work and shall be paid a minimum of eight (8) hours of pay,
per day, up to three (3) days for his scheduled time actually lost from the day
of death to the day of the funeral, inclusive except, if the funeral is in
excess of 200


                                       23
   25
miles from the City of Neenah, Wisconsin, then the day after the funeral shall
be considered an additional day of paid funeral leave.

         12.2 In the case of the employee's spouse or child or stepchild, paid
funeral leave shall be up to five (5) scheduled days lost at a minimum of 8
hours pay, per day, from the day of death to the seventh day following the day
of death.

         12.3 In the event of the death of an employee's grandparent,
grandchild, sister-in-law, brother-in-law, daughter-in-law, son-in-law, or of an
employee's spouse's grandparent, the employee may be absent from work and shall
be paid for scheduled time actually lost up to a minimum of eight (8) hours pay,
per day, on the day of the funeral if it is a scheduled work day and the
employee attends the funeral.

         12.4 To qualify for paid funeral leave the employee must-

              A. have passed his probationary period prior to the death of the
above mentioned family member.

              B. attend the funeral unless unable to do so because of illness,
accident, or other just cause; and

              C. notify the Personnel Department as soon as possible that he
will be absent because of the death.

         12.5 Funeral leave pay will be computed at the employee's regular
straight time base rate including any shift premium. No funeral leave pay will
be paid for days on which Holiday or Vacation pay is paid, or when an employee
is on any kind of leave of absence or Worker's Compensation. Scheduled time lost
shall not be counted as hours worked for purposes of computing overtime pay.

                              ARTICLE 13 - GENERAL

         13.1 Space for bulletin boards shall be made available by the Company
at convenient places as near as possible to the time clock for the posting of
Union notices.

         13.2 Duly accredited representatives of the Union, upon application for
permission, shall have the right of access to the plant to interview any of the
employees affected by this contract or to investigate any grievances. The
Company will provide accommodations for such or on its premises.

              A. Upon proper notice to the Company from the Union requesting
time off for representatives to perform Union business, the Company shall give
written notice of work release to the affected employee, his immediate
supervisor and/or department manager.


                                       24
   26
                                    SICK PAY

         13.3 Any employee covered by this Agreement who is absent because of a
non-industrial accident or Illness long enough to collect benefits from the
Neenah Foundry Company Sickness and Accident Insurance Program will be paid up
to the first three (3) scheduled work days of such absence or absences not
covered by the insurance program at the rate of eight (8) hours per day at the
employee's straight time hourly base rate. It is understood that not more than a
total of three (3) scheduled work days will be due an employee during any
calendar year because of a non-industrial sickness or accident or combination
thereof.

              A. Any employee who is absent due to an industrial injury incurred
at Neenah Foundry Company will be paid, under this Agreement, for the first
three (3) scheduled work days of absence or absences not covered by Worker's
Compensation Insurance, for each such injury or illness, if, (1) the injury
sustained was properly reported on the day of injury, and, (2) these same days
are not later paid for by Worker's Compensation.

              B. In any event, no sick pay will be paid for any day not a
scheduled work day, or on which holiday pay or vacation pay is paid.

         13.4 The Company will continue to provide, and with the cooperation of
its employees, maintain proper sanitary and safety conditions. A joint
Company-Union Safety Committee shall function as outlined in the December 17,
1974 policy letter.

         13.5 The Company agrees, within thirty (30) days from the execution of
this contract, to furnish a current seniority list and to keep it current at
such times as may be agreed upon between the Company and the Union.

         13.6 The Union will, at the execution of this contract, furnish the
Company with a list of the names of its Shop Stewards Committee or other
committees designated to handle negotiations and grievances on behalf of the
Union.

         13.7 The Company will, at the execution of this contract, furnish the
Union Business Committee with a list of the names of its Bargaining Group who
will have authority to negotiate or adjust Grievances.

         13.8 The Company shall furnish a meal at a cost not to exceed $4.00 for
each employee who works more than two (2) hours beyond his scheduled shift. A
paid twenty minute lunch period will be provided when meals are furnished; such
period will not be included in the "more than two (2) hour" qualifying period,
but will be counted as time worked for overtime purposes.

         13.9 The Company and the Union will comply with all laws and
regulations established by Federal and State Governments regarding their
respective obligations under this Agreement.


                                       25
   27
               A. Any Federal or State law which mandatorily changes any of the
provisions of this Agreement shall govern. However, such required change shall
not change any of the other provisions of the contract.

         13.10 Non-bargaining unit personnel shall not perform work normally
done by bargaining unit employees except for the purpose of instruction or in
the case of emergency. (See policy dated December 9, 1974.)

         13.11 Upon presentation of proper pay voucher, an employee required to
serve jury duty shall be paid the difference between his jury duty pay and eight
(8) hours of straight time pay at his base rate for each scheduled work day he
lost as a result of the jury duty.

         13.12 A tool allowance of $150.00 will be paid annually to each
maintenance employee on the payroll as of January 1.

         13.13 The Company will reimburse each employee $50.00 for one pair of
approved safety shoes purchased by the employee for his personal wear, each
year. For designated employees who have outside jobs, the Company will provide
an additional $50.00 reimbursement for purchase of one pair of insulated safety
boots per year. Employees regularly assigned to the following outside are
eligible for the additional $50.00 reimbursement:


                               Plant 2                   Plant 3
                               -------                   -------

                             Charge Yard                 Charge Yard
                              Shipping
                                Yard
                                Paint
                              Knockout
                             Skid Repair
                              Front End
                           Loader Operator
                      Inter Plant Truck Drivers
       Plus:    Outside Distribution Yards


To be eligible for any reimbursement allowance, the employee must have completed
his probationary period at the time of purchase.

         13.14 The Company will reimburse each employee for replacement of
prescription safety glasses, or parts thereof, which are damaged at work at the
actual cost to a maximum of $35.00 per year.

                              ARTICLE 14 - PENSIONS


                                       26
   28
         14.1 The Company agrees to continue its pension program started January
1, 1963, according to separate contract with Connecticut General Life Insurance
Company. This plan is to be wholly financed and owned by the Company.

              A. Effective January 1, 1996, the formula for determining monthly
pensions shall provide for $28.00 per month as pension base.

              B. Effective January 1, 1998, the formula for determining monthly
pensions shall provide for $29.00 per month as pension base.

              C. Employees who retire during 1996 and 1997 will retire at the
$28.00 per month pension base calculation. Effective January 1, 1998, those same
employees will have their pension recalculated on the $29.00 per month pension
base.

         14.2 The plan contains a surviving spouse's benefit provision. To be
eligible for such benefit, an employee shall have a minimum of five (5) years of
vested Company service.

         14.3 The normal retirement date is the first of the month following the
employee's 65t[i birthday. Provisions for early retirement after age 60 are
provided for in the plan.

         14.4 The minimum pension disability benefit shall be $335.00 per month.
To be eligible for such benefit, an employee shall have a minimum of five (5)
years of vested Company service.

              A. Effective January 1, 1998, the minimum pension disability
benefit shall be $350.00 per month.

         14.5 None of the above increases in pension benefits shall apply to
employees already on retirement.

                             ARTICLE 15 - INSURANCE

         15.1 A PPO Health Insurance Plan, administered by Employers Health
Insurance, Network Health Plan (HMO) and United Health Plan (HMO) will be
offered.

              A. Specific benefits offered by the plans listed in 15.1 are
contained in the plan summaries which are available through the Personnel
office.

              B. The employee monthly contribution for coverage effective
January 1, 1996, is as follows:


                       Network HMO          PPO Plan         United HMO


                                       27
   29
Single Coverage           $27.95              $38.88            $32.92
Family Coverage           $76.59             $105.89            $92.61


These employee contribution rates for health insurance will be in effect for
calendar year 1996, and for any future premium changes, the employee will pay
20% of the gross premium during the life of this agreement.

              C. Effective January 1, 1988, employees with 15 or more years of
service who retire between the ages of 60 and 65 will be eligible for continuing
in one of the health insurance plans offered by Neenah Foundry Company to the
regular hourly employees by paying 50% of the insurance premium costs, until the
employee reaches age 65 or qualifies for medicare coverage earlier. Effective
January 1, 1996, employees who elect to retire between the ages of 62-65 will be
eligible to continue in one of the health insurance plans offered by Neenah
Foundry Company to regular hourly employees, by paying 25% of the insurance
premium cost, until the employee reaches age 65 or qualifies for medicare
coverage earlier. It is further understood that if the employee elects family
coverage, dependents as defined in the policy are also covered, and if the
employee should die during this period of coverage, all coverage for dependents
stops at the end of the month in which the employee dies.

              D. It is understood there will be no changes in the coverage or
the carrier except by mutual agreement between the Company and the Union
Business Committee.

         15.2 For Life Insurance, Weekly Sickness and Accident Insurance, and
Accidental Death and Dismemberment insurance, the Company will continue to pay
90% of the premiums and the employee will pay 10%.

         15.3 The weekly Sickness and Accident benefit shall be $240.00 for a
maximum of 26 weeks.

              A. Effective January 1, 1997, the weekly benefit shall be $250.00.

              B. Effective January 1, 1998, the weekly benefit shall be $260.00.

         15.4 The Accidental Death and Dismemberment coverage is $18,000.

         15.5 The Company will pay 65% of the cost and the employee will pay 35%
of the cost of the Employers Insurance Dental Plan, now in effect.

              A. Eligibility for this coverage will begin the first day of the
month following the employee's 12 month service anniversary.


                                       28
   30
         15.6 In the case of a. work-connected death of an employee who carries
family coverage under the Company's health insurance and/or dental insurance
programs, the Company will continue such programs for a period of thirty-six
(36) months for the surviving spouse and dependent children. The Company will
pay the full premium for that coverage the employee had carried at the time of
his death.

         15.7 Life Insurance Coverage is $18,000.

         15.8 In the event an employee is laid off the Company shall continue to
pay its percentage share of the premium of the health and welfare plan
(excluding sickness and accident benefits) for a period of three (3) months
following the month in which the layoff became effective provided the employee
arranges with the Personnel Office for payment of his percentage share of the
premium.

         15.9 Eligibility for coverage by the insurance programs, except Dental
Coverage, shall commence on the first of the month following completion of
thirty (30) days worked.

         15.10 The insurance benefits outlined herein are subject to the express
limitations, exclusions and all other terms and conditions as fully and
completely set forth in the actual insurance policies in effect between the
Company and the respective carriers.

                              ARTICLE 16 -TRUCKING

         16.1 An Over-the-Road Truck Driver is one who is classified as such and
operates tractor-trailer type of equipment used generally for long hauling.

         16.2 Rates and conditions applicable only to Over-the-Road Truck
Drivers are set forth in Exhibit "D" which by this reference is made a part of
this Agreement.

                         ARTICLE 17 -TERMINATION CLAUSE

         THIS CONTRACT agreed upon the 29th Day of December, 1995, and signed
this ___________ Day of _____________, 1996, shall be in full force and effect
from January 1, 1996, until and including the 31st day of December, 1998.


                                       29
   31
NEENAH FOUNDRY COMPANY

E. W. Aylward, President & CEO

LOCAL NO. 121B GLASS, MOLDERS, POTTERY, PLASTICS AND ALLIED WORKERS
INTERNATIONAL UNION, AFL-CIO-CLC

Jerry L. Cotton
John A. Mansfield Sr.
Darrin Miracle
Lynn C. Broege
Tom Lorge
Fred Clay
Reuben H. Stoegbauer
Mick Dietzen
Jim Strompolis
Donald Benotch, Executive Officer
         GMP, AFL-CIO-CLC

                                   EXHIBIT "A"
                                  MINIMUM RATES
                                  NON-INCENTIVE




                                                                            EFFECTIVE DATES
                                                      12/31/95                12/29/96                 12/28/97
                                                      --------                --------                 --------
                                                                                              
Janitor Labor                                             $11.33                   11.68                    11.98
Yard and General Labor                                     11.33                   11.68                    11.98
Cleaning Room General                                      11.36                   11.71                    12.01
Truck Loader Helper - Plant 2                              11.41                   11.76                    12.06
Gangway Man                                                11.41                   11.76                    12.06
Pattern Storage                                            11.41                   11.76                    12.06
Pattern Setup                                              11.46                   11.81                    12.11
Utility Man - Plant 2                                      11.49                   11.84                    12.14
Jeep Driver General                                        11.51                   11.86                    12.16
Sand Tester                                                11.51                   11.86                    12.16
Flask Welder                                               11.51                   11.86                    12.16
Shipping Clerk Helper                                      11.56                   11.91                    12.21
Pattern Storage Truck                                      11.56                   11.91                    12.21
Receiving Clerk                                            11.57                   11.92                    12.22
Inspector                                                  11.59                   11.94                    12.24
Front End Loader Operator                                  11.59                   11.94                    12.24
Jeep Driver, Metal Delivery                                11.59                   11.94                    12.24
Casting Processing - Plaint 3                              11.60                   11.95                    12.25



                                       30
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                                                      12/31/95                12/29/96                 12/28/97
                                                      --------                --------                 --------
                                                                                              
Core Support - Plant 3                                     11.60                   11.95                    12.25
Stock Room Clerk                                           11.61                   11.96                    12.26
Utility - Distribution Yards                               11.61                   11.96                    12.26
Maintenance Helper, Mechanical                            $11.67                  $12.02                   $12.32
Salvage Welder                                             11.67                   12.02                    12.32
BMD Operator Assistant                                     11.82                   12.17                    12.47
BMD Finishing Operator Assistant                           11.82                   12.17                    12.47
Truck Driver/Utility - Distribution
         Yards                                             11.82                   12.17                    12.47
Melt Systems Plant 2                                       11.90                   12.25                    12.55
BMD Iron Pourer                                            11.90                   12.25                    12.55
Melt System - Plant 3                                      11.90                   12.25                    12.55
Qaulity Assurance - Plant 3                                12.10                   12.45                    12.75
Utility Truck Driver                                       12.12                   12.47                    12.77
Maintenance General, Mechanical                            12.13                   12.48                    12.78
Core Operations - Plant 3                                  12.55                   12.90                    13.20
BMD Finishing Operator                                     12.90                   13.25                    13.55
BMD Pattern Change Operator                                12.90                   13.25                    13.55
Disa System                                                12.90                   13.25                    13.55
BMD Maintenance Operator                                   14.38                   14.83                    15.23
Maintenance Mechanic                                       14.38                   14.83                    15.23
Journeyman Electrician                                     15.20                   15.65                    16.05



                                       31
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                             APPRENTICE PAY SCHEDULE
                                  (ELECTRICAL)

Minimum Compensation to be paid:
1st period of 1,050 hours 75% of the skilled rate
2nd period of 1,050 hours 78% of the skilled rate
3rd period of 1,050 hours 81% of the skilled rate
4th period of 1,050 hours 84% of the skilled rate
5th period of 1,050 hours 87% of the skilled rate
6th period of 1,050 hours 90% of the skilled rate
7th period of 1,050 hours 93% of the skilled rate
8th period of 1,050 hours 96% of the skilled rate

                                    INCENTIVE



                                                              12/31/95             12/29/96              12/28/97
                                                              --------             --------              --------
                                                                                                
Chipper                                                             11.21                11.56                 11.86
Grinder                                                             11.21                11.56                 11.86
Machine Shop Operator - Plant 2                                     11.21                11.56                 11.86
Core Maker                                                          11.21                11.56                 11.86
Core Finisher                                                       11.21                11.56                 11.86
Shifter and Shakeout                                                11.21                11.56                 11.86
Jeep Driver/Load Checker - Plant 2                                  11.30                11.65                 11.95
Radial Drill Operator                                               11.31                11.66                 11.96
Truck Loader/Order Picker - Plant 2                                 11.31                11.66                 11.95
Iron Pourer                                                         11.40                11.75                 12.05
Slinger Molder                                                      11.40                11.75                 12.05
Slinger Operator, Hydro                                             11.54                11.89                 12.19


         Leadmen, when utilized, will be selected by the Company. Leadmen will
receive a minimum of 15(cents) over the rate of the job led.


                                       32
   34
                                   EXHIBIT "B"

         DRUG AND ALCOHOL ABUSE POLICY BETWEEN NEENAH FOUNDRY COMPANY AND LOCAL
121B, GLASS, MOLDERS, POTTERY, PLASTICS & ALLIED WORKERS INTERNATIONAL UNION,
(AFL-CIO-CLC)

         POLICY FOR SCREENING FOR ABUSE OF ALCOHOL, MARIJUANA AND CHEMICAL
SUBSTANCES

         Neenah Foundry Company and GMP Local 121B have a strong commitment to
provide a safe and secure workplace for all employees and to promote high
standards of employee health and productivity. Because of this commitment, both
Neenah Foundry Company and GMP Local 121B agree to a program of screening for
use and/or abuse of alcohol or chemical substances in the workplace.

         It is the purpose of this agreement to provide guidelines for
addressing such substance use/abuse by employees.

         1.  There will be no random drug/alcohol testing except as mandated by
law.

         12. This agreement applies to employees in situations where the Company
has determined the employee to be under the influence of drugs, marijuana,
chemical or controlled sub stances, or alcohol while at work or on Company
property.

         23. If an employee appears to be under the influence of alcohol or
drugs, the supervisor should, if possible, secure the assistance of another
supervisor in observing the employee's action and in escorting the employee to
an appropriate office or area for further investigation. A Union representative
or designee shall be secured to be present during the investigation.

         34. If, as a result of the investigation, the supervisor has reasonable
cause to believe that the employee is in a condition that is jeopardizing
workplace safety or cannot perform his or her job because of on-the-job
intoxication or impairment, the employee will be suspended and will be required
to submit to a screen for alcohol/drugs. The supervisor may and if requested by
the employee, a Union representative may accompany the employee to the test
site. However, neither shall be permitted to impede the testing process. The
Union representative will continue to be paid during the time required to
accompany the employee, wait at the test site, and return to work, if he would
otherwise be scheduled to work during this time.

         5. The initial screen for suspected drug, marijuana, and chemical
substance use will be an enzyme multiplied immunoassay test. The confirmatory
test will be a gas chromatography-mass spectrometry (GC-MS) test. A confirmatory
will automatically be performed on any sample that is initially positive.
However, the Company reserves the right to test directly by using the gas


                                       33
   35
chromatography-mass spectrometry (GC-MS) test rather than the initial enzyme
multiplied immunoassay (EMIT) test.

             In those situations where there may be reason to believe that the
sample may have been tampered with by the person giving the sample prior to the
sealing and signing of the samples, the Company may authorize the laboratory to
perform a Specific Gravity test prior to the EMIT/GC-MS test being performed.

         6.  If available, the appropriate test for suspected alcohol use will
be a breathalyser test. A blood sample may also be utilized at the discretion of
the Company to determine or verify the results of the test.

         6A. State law standards as defined in the motor vehicle code in the
state where the plant exists or incident occurs, will be utilized to determine
if the employee is intoxicated.

         47  The initial sample taken for screening for illegal chemical
substance, drugs, marijuana and controlled substances will be split into three
samples. They will be sealed and signed at the time of the taking of the sample
by the person taking the sample and the person giving the sample. One sample
will be used for the EMIT and/or the confirmatory (GC-MS) test. The remaining
two (2) sealed and signed samples will be retained by the testing laboratory. If
it is determined that the GC-MS screen is positive, the employee will have the
right within two (2) weeks of notification of said positive screen test results,
to have the second sample sent to a certified lab of their choice to be tested.
The laboratory selected by the Company will transmit the sample directly to the
laboratory selected by the employee, with the seal and signature intact to
protect the chain of custody, where a GC-MS confirmatory screen test will be
performed.

              The employee will be reimbursed for the cost of any screen
performed at his discretion provided the laboratory selected is certified for
testing by the National Institute of Drug Abuse (NIDA) (or a comparable
independent state certified laboratory), and provided the results are negative.
The employee will sign a consent agreement authorizing the release of the
results of the screen to the Company.

              In situations where the results of the screen test from the two
(2) labs reach opposite conclusions, then a third certified laboratory will be
selected by the two (2) respective laboratories and the remaining sealed and
signed sample of the original specimen will be sent to the third certified
laboratory to perform a GC-MS screen test.

              The results of the third certified laboratory will be binding on
all parties and if the tests are negative then the employee's record would be
cleared of any suspension or reference to the incident. The Company will
reimburse the employee for time lost at the applicable rate, as specified in the
Union contract, from the date of suspension.


                                       34
   36
         8. Any employee who is asked to submit to a screen for alcohol or drug
use will sign a consent agreement authorizing the release of the results of the
screen to the Company.

         9  Refusal to submit to a screen for items covered under this Drug and
Alcohol Abuse Policy or to sign a consent agreement or to take rehabilitation
recommended by appropriate medical authorities will be considered
insubordinations and the employee will be suspended pending termination.

         10. If the employee is taking prescription or over-the-counter
substances that might affect the results of the screen, the Company will be
advised by the employee prior to the screen being administered.

         11. The Company will select a properly licensed, accredited testing
NIDA or comparable state approved/certified facility and follow testing
procedures specified above to assure the most accurate results, maintain the
most complete chain of custody and quality control procedures and assure the
maximum of confidentiality.

         11A. Outside of the Neenah/Menasha area, the Company and Union will
accept reasonable facilities and the results of law enforcement agencies.

         512. All screening as well as the results of any screen will be treated
in a confidential manner. All employees who are tested will be given the results
of their tests in writing.

         613. Any employee found to be intoxicated (in accordance with 6A),
under the influence of illegal chemical substance, marijuana or controlled
substances, will be offered the opportunity for rehabilitation on the first
incident only except as if specified in Item 15 below.

              The type of rehabilitation program available will be determined at
the appropriate time after consultation with appropriate medical authorities.
Any treatment must be provided by an approved rehabilitation facility in
accordance with the insurance program specified in the respective Collective
Bargaining Agreement. If the employee agrees to the rehabilitation program, then
the employee will be required to satisfactorily complete such rehabilitation
program. Failure to do so will result in their suspension pending termination.

         14. An employee who has completed rehabilitation and is found to be
under the influence of alcohol, (in accordance with 6A), illegal chemical
substance, marijuana, or controlled substance a second time, the employee will
be suspended pending termination.

         15. Any employee who initially tests positive for use of alcohol (in
accordance with 6A), illegal chemical substances, marijuana, or controlled
substance and, the test is confirmed, will be subject to future tests upon
reasonable cause as specified in (4) and (5) above.


                                       35
   37
              In situations where an employee voluntarily comes forward prior to
any Company inquiry and admits they have an alcohol or drug problem after having
satisfactorily completed the counseling/rehabilitation program shall be given a
second chance at rehabilitation. Any subsequent situations will result in the
employee being suspended pending termination.

         716. All new employees will be informed that the Company has an alcohol
and substance abuse testing program.

         17. This policy does not replace or interfere in any way with normal
disciplinary procedures.

         18. All specimens will be sent to a National Institute of Drug Abuse
Laboratories (NIDA), and all test results will be forwarded to Neenah Foundry
Company.

         19. Any dispute with respect to this drug and alcohol policy shall be
subject to the Grievance procedure.

                                   EXHIBIT "C"

                             NEENAH FOUNDRY COMPANY

         SUPPLEMENTAL INCENTIVE AGREEMENT AGREED ON NOVEMBER 27, 1957, amended
January 1, 1960, amended December 27, 1962, amended January 1, 1969, amended
January 2, 1972, renewed January 1, 1975, renewed January 1, 1978, amended
January 1, 1981, renewed January 1, 1984, renewed January 1, 1987, renewed
January 1, 1990, renewed January 1, 1993 and renewed January 1, 1996.

         A. The Company agrees to study and install incentive rates for workers
who are not now on any incentive plan, where such plans are practical.

         B. Incentive Plans established by the Company are to be set at a level
which affords a normal competent operator working at incentive pace, producing a
quality product, the opportunity to earn 33% over contract base rate, where
performance is fully controlled by the operator's own effort. Where less than
full opportunity for work exists, because performance is restricted by
equipment, operating limitations, or availability of work, the total earnings
opportunity shall be proportionately less by agreement with the Union.

         C. All incentive workers shall be guaranteed their base rate for each
day worked. Core makers and core finishers will be guaranteed their incentive
earnings for each division worked during a single day. Divisions are defined as
follows: a) Bench and Bench Blower and CB-22 no-bake.

         D. Molders, Coremakers, Core Finishers, Chippers, Grinders, Machine
Shop and Radial Drill Operators working on experimental work or samples will be
paid on the basis of average


                                       36
   38
earnings. For this purpose, the following definitions will apply: (1) SAMPLES
are jobs being run to prove a production process to satisfy customer or Company
requirements, and may involve interruptions by Supervision and/or Quality
Control; (2) EXPERIMENTAL WORK involves the research and/or development of new
materials, processes, or equipment to evaluate the feasibility of incorporating
them into the manufacturing operation.

         E. The Union shall be given a copy of all standard data used as basis
for setting incentive rates including future additions or changes to such
standard data. Each Plant Manager will have a copy of the standard data used in
his plant, which will be made to duly appointed Union representatives upon
request. Minor changes shall not cause an adjustment in standard data until the
accumulated changes total at least plus or minus 5%.

         F. After incentive rates have been installed, such rates cannot be
changed except as provided in paragraphs 1, 2 and 3 below or by mutual agreement
between the Union and the Company. This does not preclude the Company from
establishing new methods and procedures and assigning applicable rates.
Incentive rates, once established, shall become permanent rates and shall be
guaranteed against change except for the following:

                  1.       Changes due to errors in job content analysis,
                           clerical errors, managerial changes in material,
                           method, equipment or process which definitely change
                           the work elements of the job so that it shall require
                           more or less time to perform.

                  2.       Where changes affect the time required to perform an
                           element or elements, only those elements which have
                           changed will be adjusted.

                  3.       Changes through grievance procedure.

         G. Notification of changes will be given to workers affected by the
changed rate. Such notifications will include the reason(s) change was made.

         H. Incentive rates will be computed from Standard Data. If the
incentive rate cannot be met by a normal competent operator working at an
incentive pace, the Company agrees to review the elements making up the
incentive rate. In accordance with results of the review, the incentive rate may
be adjusted to provide normal incentive opportunity on the job. Incentive
earnings shall not be averaged to determine whether individual values are fairly
established.

         I. Any incentive employee or Committeeman shall have the right to
grieve any new incentive rate which has been established by the Company.
However, as a crude to determine whether an individual is justified in
challenging a particular incentive rate, such individual's overall average
incentive earnings shall be considered. If a rate is changed as a result of a
grievance such rate shall be retroactive to the date on which the grievance was
filed.


                                       37
   39
         J. The Company shall endeavor to establish rates for unrated . obs
before the job starts. If the rate is not established before the job starts, the
rate shall be set and the employee notified within four hours from job start or
by the end of the shift, whichever is sooner, or pay average earnings
retroactive to job start. An unrated job is any job (excluding plus standard
work) for which a rate is not at the job site when the job starts.

         K. If an incentive employee or leadman has a question concerning the
work content of a job, he shall contact his supervisor. The supervisor shall
check the job by observation, by review of the scheduling master, or other data.
If the operator's question cannot be satisfactorily answered, then the
supervisor shall request a copy of the factor sheet and will review the copy of
the factor sheet with the employee. The supervisor may request the Standards
Department to observe the job in question.

         L. A duty appointed Union representative, after contacting his
supervisor, shall have the right to examine any incentive rate in effect during
the life of this contract. The Union representative, in order to complete the
examination of an incentive rate, may request the supervisor to get the factor
sheet for said job. All such rates shall at all times remain in the possession
of the Company, subject, however, to the right of inspection by the Union
representative.

         M. The International Union Representative or Shop Steward Chairman
Assistant shall have the right to call for a time study on any incentive rate
which the Union feels is improperly established and on which a grievance has
been filed. Such time study shall be made in accordance with accepted Industrial
Engineering practice.

         N. When time studies are made as a result of a grievance, the Union
Representative shall be furnished with a copy upon request.

   40
                                   EXHIBIT "D"

                                    TRUCKING

         1.       The following rates shall apply as indicated:

                  a. Mileage Rate - The mileage rate for employees who are OTR
Drivers or Relief Drivers on December 31, 1995 shall be 340 per mile from
December 31, 1995, through December 28, 1996. This mileage rate will be
increased to 34.50 per mile December 29, 1996.

                  b. Hourly Rate - The hourly rate shall be $13.48 per hour from
December 31, 1995, through December 28, 1996. Effective December 29, 1995, the
hourly rate shall increase to $13.83, and effective December 28, 1997, it shall
be $14.13.

         2.       The Over-the-Road Driver will be paid mileage on the basis of
routings and mileage determined and assigned by Neenah Transport, Incorporated.
Until mileage for a specific route has been determined, the route will be
designated and odometer mileage will be paid.

         3.       It is understood that mileage compensation covers all time
spent in the service of the Company, including but not limited to pickups,
deliveries, line-haul operations, communications and reporting, exchange of
equipment, waiting time, scaling, fueling, equipment checks, loading or
unloading, verifying the accuracy of products loaded or unloaded, precautionary
measures to protect the load, including tamping, ensuring the trailer is clean
and safe for loading and compliance with all state and federal paperwork and
inspection requirements of any kind whatsoever and any other functions required,
assigned or performed as an Over-the-Road Driver except as provided in
paragraphs 9, 10, 11, 12 and 13 of this Exhibit.

         4.       "Out-of area" shall be defined as any place in excess of 50
miles from the designated home terminal. "Area" shall be defined as any place
within 50 miles from the home terminal. When assigned to area driving, the
Over-the-Road Driver shall be paid the mileage rate provided in paragraph 1, in
addition to any drop pay for which he qualifies.

         5.       On out-of-area trips the Company shall have the right to
schedule and route Over-the-Road Drivers to fit its delivery and pickup
requirements and to install and use any recording equipment on the vehicles.

         6.       Where overnight trips are scheduled, the Over-the-Road Driver
shall be entitled to reasonable expense for lodging.

                  a. Reasonable expense for lodging will be effective only at
the end of the second consecutive work day, and every other second consecutive
day following, when a driver is on an extended trip. When circumstances make
such impractical, then the driver is to contact Neenah Transport supervision and
obtain advance approval to stay in a motel.


                                       39
   41
                  b.       The Company will reimburse each driver for reasonable
expenses when charged for utilizing truck-stop showers, on each day he does not
stay in a motel.

                  c.       The Company will reimburse each driver for parking
fees required to be paid for parking the truck.

                  d.       Drivers must submit paid bills for all expenses.

                  e.       An employee eligible for a motel under 6a, above, may
elect to accept a payment of $35.00 instead of sleeping in a motel.

         7.       Over-the-Road Drivers shall submit an immediate verbal report
on all accidents, and follow with a written report on any accidents, defects in
equipment or any emergencies as soon thereafter as possible. In case of illness
which precludes the driver from proceeding further to his destination, such
driver shall notify Neenah Transport supervision as soon as possible.

         8.       Over-the-Road Drivers shall familiarize themselves and comply
with the Neenah Transport Truck Drivers' Manual, as well as all applicable rules
and regulations of the DOT, Wisconsin Department of Transportation, and the
various states in which our operations are conducted.

         9.       Minimum Daily Guarantee. When an Over-the-Road Driver reports
to work and was not advised at the end of the previous day that there would be
no work, he shall be paid a minimum of four (4) hours employment or a minimum of
four (4) hours pay at the hourly rate provided in paragraph I before being
dismissed for the day, provided, however, that the Company shall not be liable
under this paragraph for unavoidable breakdowns of machinery, power failure,
Acts of God, or conditions beyond the control of the Management. It is
understood that this paragraph (9) applies only to drivers beginning their work
schedule at the designated home terminal or maintenance point.

         10.      Lost time due to Over-the-Road Emergencies.

                  When an Over-the-Road Driver on an out-of-area trip is unable
to continue that trip because of accidents, impassable road conditions such as
ice, snow, flood, fog, or other Acts of God for a period of twenty-four (24)
consecutive hours or more, he will receive eight (8) hours pay at the hourly
rate provided in paragraph I and a meal allowance of $15.00. An additional
eight (8) hours of pay at the hourly rate provided in paragraph I and a meal
allowance of $15.00 will be provided at the end of each consecutive twenty-four
(24) hour delay period thereafter.

                  When an Over-the-Road Driver on an out-of-area trip is unable
to continue that trip because of a breakdown, the driver shall be paid the
hourly rate provided in paragraph I when required to remain with his equipment,
to a maximum of 10 hours total pay for that day. After eight (8) hours from the
time he is no longer required to remain with his equipment, he will be paid up
to an additional 10 hours at the rate provided in paragraph I if his equipment
is not available within the


                                       40
   42
24 hour period beginning when he is no longer required to remain with his
equipment, as well as a meal allowance of $15.00. Should his equipment not be
available after that 24 hour period, he will again be paid up to an additional
10 hours at the rate provided in paragraph 1, and a meal allowance of $15.00.

         11.      Layover Pay.

                  If an Over-the-Road Driver is directed by Neenah Transport
supervision to lay over for a period exceeding twenty-four consecutive hours,
the driver shall be paid eight (8) hours at the hourly rate provided in
paragraph I and a meal allowance of $15.00. An additional eight (8) hours of pay
at the hourly rate provided in paragraph I and a meal allowance of $15.00 will
be provided at the end of each consecutive twenty-four (24) hour lay-over period
thereafter. In the event a layover consists of 10 hours or more, then the
company will reimburse the driver for reasonable expenses if they chose to stay
in a motel.

         12.      Drop Pay.

                  An Over-the-Road Driver on an area or out-of-area trip will be
compensated according to the number of stops for loading and/or unloading
purposes at customer and/or vendor locations for each trip by the following
schedule:


                                                        
1st Stop                                                   $20.00
2nd and subsequent stops                                   $10.00


If a driver is delayed at any one stop for pickup and/or delivery for a period
of more than two (22) hours, and he provides the Company with required
documentation of necessary delay time, he will be paid at the hourly rate
provided in paragraph I for the time that exceeds two (2) hours. However, it is
understood that the driver will not be compensated at the hourly rate for time
periods when the customer or vendor shipping or receiving facilities are closed.
It is further understood that Switch & Go at Neenah Terminal is $ 1 0.00 drop
pay with a maximum of one payment per day.

         13.      Lumber and Coke Tarping

                  An Over-the-Road Driver will be paid a special tamping
allowance of $10.00 for the initial tamping of a lumber load, in addition to
any Drop Pay for which he is eligible. It is agreed that this special Tarping
allowance is applicable to the initial loading of a lumber load only, and not
applicable for re-Tarping following subsequent drops of the load.

                  An Over-the-Road Driver will be paid a special Coke Tarping
allowance of $10.00 for the initial Tarping of a coke load, in addition to any
Drop Pay for which he is eligible, when he is required to tarp from the top of
the load. It is agreed that this special coke tamping allowance is


                                       41
   43
applicable to the initial Tarping of a coke load only, and not applicable for
re-Tarping following subsequent drops of the load. When equipment is furnished
which will permit the Driver to tarp the coke load from the ground, then no
special Coke Tarping Allowance will be paid.

         14.      Call-In Pay - If after returning to his home terminal and
being informed that his dispatch is complete and being dismissed for the day (or
some other specified time), a driver is notified he is to return to work before
his next work day, he shall be paid two (2) hours straight time call-in pay at
his regular base rate, in addition to pay at the appropriate rate for his actual
time worked.

                  A driver who requests or volunteers for an early dispatch will
not qualify for call- in pay.

         15.      All other provisions of the current Labor Agreement except
Article 2.1, 2.2, 2.3, 2.4, 2.5, 2.6, 2.8, 2.9, 7.2, 7.3, and 13.8 shall be
applicable to Over-the-Road Drivers while on out-of-area trips. However,
Over-the-Road Drivers will be paid one and one-half times their hourly base wage
for attending scheduled Saturday meetings called by the Company, and shall be
paid at the rate of double the regular rate for work performed on Sunday, except
for Sundays when dispatched from the home terminal, or when paragraph 10 of this
Exhibit applies.


                                       42
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                       NEENAH FOUNDRY COMPANY BASIC RULES

         In order to maintain the general welfare of the Company and its
employees and to assure fair treatment for all, the following revised rules are
effective immediately.

         Disciplinary action, whether it be in the form of a warning, suspension
from work without pay, or discharge, will be based upon the circumstances
surrounding the violation, together with the employee's general record of
employment with the Company.

         1.       Violation of the contract between the Company and Local No.
                  121 B.
         2.       Dishonesty.
         3.       Insubordination.
         4.       Unsafe conduct.
         5.       Unauthorized absence from job for any length of time or
                  unauthorized presence in the plant.
         6.       Failure to comply with job requirements and responsibilities.
         7.       Damage to property on Company premises.
         8.       Reporting for work while under the influence of intoxicants or
                  use or possession of intoxicants on Company premises
                  (includes-illegal controlled substances).
         9.       Conduct detrimental to the welfare of the Company or its
                  employees.

                  These basic rules are subject to change at any time.


                                       43
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                             NEENAH FOUNDRY COMPANY
                               NEGOTIATED POLICIES


         1.       Molding job difficulty policy.

                  If after a pattern change, a molder(s) is having difficulty
through no fault of his own in making acceptable molds, then after one-half hour
of such effort, excluding the time required in putting on a pattern, and
following his notification to his supervisor of the difficulty, then:

                  a.       The job would be pulled and the employee would be
                           paid base rate.
                  b.       If the employee continues the job beyond the half
                           hour, and such is approved by his supervisor, then he
                           will be paid his average earnings from the start of
                           the job, including pattern change time, until he can
                           make acceptable molds.

         2.       Maintenance uniforms.

                  The Company will arrange to provide five sets of laundered
coveralls per week to each maintenance employee. Ownership of the uniforms will
be retained by the laundry service.

         3.       Core maker and finisher job difficulty policy.

                  Core makers and finishers, after approval of the supervisor
and for cause beyond control of the worker, may work all or part of a job on
base hourly rate. Minimum time to be considered is 30 minutes.

         4.       Maintenance tools.

                  Neenah Foundry Company will furnish necessary tools in 3/4" or
above drive size. These tools will be stored and available to maintenance people
as required for their use. They will be stored in Company approved locations.

         5.       Non-bargaining unit personnel performing bargaining unit work.

                  Article 13. 10 reads, as follows:

                  "Non-bargaining unit personnel shall not perform work normally
done by bargaining unit employees except for the purpose of instruction or in
the case of emergency."

                  To aid in the interpretation of this paragraph, the following
clarification is provided:

                  1.       What is "for the purpose of instruction"? Any work
                           performed by a supervisor or foreman for the express
                           purpose of training the employee is


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                           "instruction." Generally, a training method of
                           showing and then having the employee try, making
                           corrections, and then continuing that process until
                           the employee has learned to do the particular work is
                           followed.

                  2.       What is "in the case of emergency"? A supervisor is
                           required to work in an emergency.

                           a.       An "obvious" emergency exists when prompt
                                    and immediate action for protection of
                                    employees, property, equipment, or materials
                                    is required. This type of emergency is
                                    typified by being unplanned, or unforeseen
                                    and requires immediate action.

                           b.       A "less obvious" emergency can also exist.
                                    For example, due to short crewing, such as
                                    caused by absenteeism and tardiness of
                                    bargaining unit employees, an emergency can
                                    be created. An "emergency" is not
                                    automatically created, however. If the
                                    condition is so critical as to have to shut
                                    down any part of the operation, or to
                                    deprive those working of the opportunity to
                                    perform work, then an "emergency" condition
                                    exists. In order to make a valid
                                    determination as to whether or not an
                                    emergency exists, we have developed a
                                    procedure for the supervision to follow for
                                    the various shifts. The procedure does not
                                    have to be followed in the order it is
                                    presented; however, all the steps should be
                                    taken before a supervisor decides whether or
                                    not an emergency exists.

         (1)      One shift operation.

Step 1:           Check with the labor pool. Leave word to send employee as soon
                  as they are available.
Step 2:           Reassign people within your department to get necessary work
                  done.
Step 3:           Ask yourself the question of any work that remains to be done,
                  "Does it have to be done now?"
Step 4:           Can any work needing to be done be accomplished by further
                  rearrangement of the work force?
Step 5:           Can any work needing to be done be performed on an
                  intermittent basis by coordinating existing people?
Step 6:           If, after the above steps are exhausted and the condition
                  becomes so critical as to have to shut down any part of the
                  operation, or to deprive those working of their opportunity to
                  perform work, then an emergency exists.


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         (2)      Two or three shift operation.

Step 1:           Check with the labor pool.  Leave word to send employee as
                  soon as they are available.
Step 2:           Reassign people within your department to get necessary work
                  done.
Step 3:           Ask yourself the question of any work that remains to be done,
                  "Does it have to be done now?"
Step 4:           Can any work needing to be done be accomplished by further
                  rearrangement of the work force?
Step              5: Can any work needing to be done be performed on an
                  intermittent basis by coordinating existing people?
Step 6:           Can you call employees in early, or hold employees over and do
                  the job?
Step 7:           If, after the above steps are exhausted and the condition
                  becomes so critical as to have to shut down any part of the
                  operation, or to deprive those working of their opportunity to
                  perform work, then an emergency exits.

         The steps listed above are designed to help when a "less obvious"
emergency exists. These steps will help to establish that there is (or isn't) an
emergency in fact, and not in name only.

         6.       Safety Committee operations.

                  Article 13.4 of the Collective Bargaining Agreement provides
for a joint Company-Union Safety Committee to function as outlined in the
December 17, 1974, policy letter. Below is the content of the referred to
letter:

                  The following is an outline of the composition and function of
the joint Company-Union Safety Committee to effectively improve the Neenah
Foundry Company safety results.

                  1.       Safety inspections. At least one safety inspection of
                           each plant will be held quarterly. During such safety
                           inspection, a (one) local plant Safety Committeeman
                           would be included in the walk-around safety
                           inspection. The Company representatives will include
                           a member of the Safety Department, the Plant Manager,
                           or his delegate, and the Maintenance Superintendent,
                           or his delegate.

                           Prior to the inspection of plant departments, the
                           Department Superintendent and a Safety Committeeman
                           designated by the Union for the area will hold a
                           brief conference with the inspection team. The
                           committee shall hold a post inspection conference to
                           discuss and analyze the inspection.

                           The Union Committeeman involved will be paid at his
                           average earnings for all time spent in such activity.
                           The Safety Committeeman so involved will be
                           transferred to the shift of the inspection and paid
                           accordingly.


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   48
                  2.       OSHA inspections. In the event an OSHA or State of
                           Wisconsin inspection is conducted, the Company will
                           make available a Safety Committee person for each
                           plant, and compensate him as outlined in L, above.

                  3.       Safety Committee meetings. Safety Committee meetings
                           will be held as often as necessary by mutual
                           agreement, but at least once each quarter.

                           The joint committee will be comprised of four Union
                           representatives and four Management representatives.
                           The Director of Personnel and Safety will serve as
                           Chairman of the joint committee.

                           The nature of these meetings will be to communicate
                           what items are of joint interest in achieving the
                           goals of the joint committee. They will include, but
                           not be limited to, the following:

                           (a)      An updating of any equipment for technology
                                    adopted by the Company to improve safety
                                    performance.

                           (b)      An opportunity for two-way communication as
                                    to the effectiveness of the general safety
                                    program.

                           (c)      Response by the Union Committeemen of
                                    constructive ideas to improve the safety
                                    results.

                           (d)      Communication about the plans for the
                                    following quarter to achieve and improve
                                    safety records, better compliance with
                                    applicable regulations, etc.

                           (e)      Review OSHA Form 200 (Log of Industrial
                                    Accidents).

                           (f)      Discuss inspections conducted by the Safety
                                    Inspection Team.

When such meetings are held, employees will be compensated as in I., above.

                  4.       Company monitoring. The Company will, under its
                           program of environmental auditing, housekeeping
                           inspections, local departmental or plant safety
                           inspections, etc. from time to time independently
                           conduct audits and inspections. These may be for the
                           purpose of determining the impact of changes,
                           experimentation with noise reduction or dust
                           suppression technology or methods, etc.


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   49
         The position of the Company is that participation by hourly Safety
Committee employees is not required, particularly in environmental auditing, and
so Safety Committeemen will not be invited to participate in this type of
activity.

                           If, under law, employees or their representatives are
authorized to participate in such, they will do so without pay. (The position of
the Company is that on walk-around safety inspections, an employee
representative may be able to make a positive contribution to either
identification of unsafe conditions or acts; however, in environmental sampling,
instrumentation and technology of environmental control employees is applied,
and, therefore, no effective contribution is anticipated to be made by the
hourly employees in this type activity.)

                  5.       Serious accidents. In the event of a serious
                           accident, requiring hospitalization of a bargaining
                           unit employee, the Director of Personnel and Safety
                           will promptly notify the President of Local 12113, or
                           his delegate, and inform him of the incident,
                           describe the circumstances, make available to him a
                           report of the accident, and keep communications open.

         7.       Weekend overtime when more than a normal department crew is
required.

                  When a department needs more than the people assigned to that
department to perform overtime work on Saturdays or Sundays, the following
procedure should be followed if employees wish to be considered for such work:

                  1.       Employees with good work records should notify their
                           supervisors that they wish to be considered for extra
                           overtime work on weekends.

                  2.       Employees within that plant so notifying their
                           supervisor will be scheduled for available work on
                           the basis of qualifications. If two or more of these
                           employees are equally qualified, the employee(s) who
                           has the most company seniority within that plant will
                           be scheduled.

         8.       Assignment of overtime.

                  Where overtime is required for an entire department, the
overtime will be worked by the department in the plant where the overtime is to
occur.

                  Where overtime is required by an entire work section, the
overtime will be worked by the work section in that department of the plant
where the overtime is to occur.

                  Where overtime is required by less than a department or less
than a work section in a plant, the overtime will be assigned the most senior
qualified employees who normally perform the job in that department or work
section.


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   50
                  Where overtime is required for work in process the employee(s)
performing the work in process will work the overtime. If additional employees
are needed, the overtime will be assigned to the most senior qualified
additional employees who normally perform the work in that department of the
plant where the overtime is to occur.

                  On weekend overtime only where less than a full department or
work section is scheduled, work performed by temporary student employees during
the week will be assigned to the senior qualified employees in that department
of the plant who were not otherwise scheduled to work overtime.

         9.       Transfers from and Cutbacks to Local 121B Jurisdiction
                  Involving Pattern maker Jurisdictional Jobs

                  1. When an employee represented by Local 121B is selected by
the Company for a job represented by the Patternmakers Union, that employee
shall retain his or her departmental seniority in his or her Local 121B
department until he or she has worked thirty (30) days, beginning with the first
day of work in the patternmaker jurisdiction job. During this time, if for any
reason the employee is returned to his or her former job, he or she will do so
with continued accumulated departmental seniority. The employee shall lose all
seniority in his former department beginning with the day after he or she
completes thirty (30) days worked in the pattern maker jurisdiction job.

                  2. If any employee of the Company who has previously occupied
a job represented by Local 121B is cut back or laid off from the pattern shop
jurisdiction, and any employees represented by Local 121B are on layoff at that
time, the employee cut back from the pattern shop shall go to the end of the
Local 121B represented employee layoff list. Should subsequent layoffs occur in
jobs represented by Local 121B, then all employees on layoff from Local 121B
represented jobs will be recalled prior to any pattern shop employee being
recalled to a Local 121B represented job.

                  3. If any employee of the Company who has previously occupied
a job represented by Local 121B is cut back or laid off from the pattern shop
and no one is on layoff from Local 121B at the time, then that employee will
have rights to a job within Local 121B jurisdiction, provided there are any
openings as determined by the Company. It is agreed that such cut-back employee
brings no departmental seniority to his job in Local 121B jurisdiction. After
six months, that employee may utilize all of the Company seniority he has for
purposes of any other layoff or for seniority determination in job posting.
During his first six months, his seniority will be counted from the day he
transferred to Local 121B jurisdiction from the pattern shop jurisdiction as
though he were a new employee.

                     This same seniority treatment will be applicable to the
employee for purposes of layoff and job posting seniority until six months are
completed. For purposes of pension plan, vacation eligibility, and all other
provisions except job posting or layoff as outlined above for the first six
months of service in a local 121B represented job which immediately follows a
cutback


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   51
or layoff from the pattern shop jurisdiction, the employee will have retained
his total Company seniority.

                  4. The parties agree that the transfer and job posting
provisions of ARTICLE 8 of the Collective Bargaining Agreement do not apply to
transfers from Local 121B to patternmaker jurisdiction.

                               MANAGEMENT POLICIES

1.       Average earnings for periods of one week or less.

         A.       Definition: Average earnings shall be the hourly rate
                  determined by dividing the sum of money paid for all hours
                  worked (excluding overtime premium and pay received for time
                  not worked) by the total hours worked in the last computed
                  four-work-week period, but excluding any week when a shutdown
                  occurs or partial operation is necessary due to holidays.

         B.       This average rate will be used whenever it is necessary to pay
                  an employee at the average earnings rate as specified in the
                  Union Contract, for periods not to exceed one week.

         C.       No adjustment will be made for shift premium.

         D.       An employee permanently transferred to a higher rated job in a
                  week in which a holiday occurs will be paid Holiday Pay at
                  such higher rate, if more than the average earnings rate.

         E.       When a holiday occurs in a week in which a general wage
                  increase becomes effective, an adjustment in average rates
                  will be made.

2.       Pay procedure for employees transferred due to temporary disability.

         An employee unable to perform his regular job because of accident or
illness, may be temporarily transferred for the period of disability or until a
determination is made that the disability is permanent and he will be unable to
return to his regular job.

         Industrial accident or industrial - The employee will receive his
regular base rate, or the base rate of the temporary job, whichever is higher,
plus incentive if any. During the time of transfer, the employee's average will
be frozen.

         Non-industrial accidents or non-industrial illness - The employee will
receive the base rate of the temporary job, plus incentive, if any.


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3.       Attendance policy - hourly employees.

         The purpose of this policy Is to minimize absenteeism. It Is the
general policy of the Company to uniformly administer the attendance rules and
related procedures listed herein.

         A.       Definitions:

                  1.       Absence - not being at assigned work station during a
                           scheduled shift.

                  2.       Excused absence - being away from assigned work
                           station with proper notification to an approval of
                           supervision and/or the Personnel Department.

                  3.       Unexcused absence - being away from assigned work
                           station without permission of supervision and/or the
                           Personnel Department.

         B.       Responsibility:

                  1.       It shall be the responsibility of plant supervision
                           with counsel from the Manager of Employee Relations
                           to administer the provisions of this policy in a
                           uniform and consistent manner.

         C.       Procedures:

                  1.       Any absence which is known in advance and able to be
                           scheduled, such as an appointment, must be reported
                           to and approved by supervision and/or the Plant
                           Office at least one day prior to the absence.

                  2.       Any absence which is not known in advance, such as an
                           emergency arising during off duty hours, must be
                           reported on the Company's "call-in" telephone line
                           (7257049) prior to the start of the employee's
                           scheduled shift. Employees whose shift starts after
                           4:00 P.M. are requested to report in an unscheduled
                           absence no later than 4:00 P.M. to enable supervision
                           to schedule their operations.

                  3.       Any absence to be classified as excused must be
                           reported within the limits set in the above two
                           paragraphs of this policy and have approval of
                           supervision and/or the Personnel Department.

                  4.       Any absence which is unexcused will result in a
                           disciplinary action as described under Article 6 of
                           the Collective Bargaining Agreement.

4.       Normal pay procedure for incentive jobs without incentive system.


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         A.       Purpose:

                  1.       To set forth the method of compensating employees
                           assigned to incentive jobs which are temporarily
                           without an incentive system, due to an incentive
                           system change or installation of a new incentive
                           system.

                  2.       This procedure replaces all procedures which have
                           been used in the past.

                  3.       This procedure is intended to cover normal
                           situations. If unusual conditions arise, deviations
                           from this procedure must be approved by the Vice
                           President of Manufacturing and Engineering.

         B.       Definitions:

                  1.       Incentive job - for the purpose of this procedure, an
                           incentive job is defined as:

                           a.       A job which formerly had incentive and is
                                    temporarily without an incentive system.

                           b.       A job which the Company has determined will
                                    be assigned an incentive system in the near
                                    future.

         C.       Responsibility:

                  1.       It shall be the responsibility of the Plant Manager
                           to administer this procedure in a uniform and
                           consistent manner.

         D.       Procedures:

                  1.       When the Company determines it is necessary to change
                           an existing incentive system, or determines an
                           existing or new job is going to be assigned an
                           incentive system, the following pay procedures will
                           be followed:

                           a.       Pay the employee assigned to these jobs,
                                    except those employees who have a current
                                    production average in that skill, or
                                    temporary base rate of 5% over the current
                                    incentive base rate for that job (105%).

                           b.       Each employee who has a current production
                                    average in that skill will be paid at 90% of
                                    his individual four (4) week average or the
                                    temporary rate outlined in D-1.a above,
                                    whichever is higher.


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   54
                           c.       The employee's average will be frozen while
                                    being paid under this procedure.

5.       Payment for time missed from work on day of lost time accident.

         An employee who is injured during the course of his employment and who
in the opinion of a medical doctor, is unable to complete his shift, will be 
paid at average earnings from the time of the injury to the scheduled end of his
shift. An employee who, because of an injury sustained during a particular shift
is unable to complete his regular job on that shift, may be assigned to other
work for the balance of the shift and will be paid his own base rate, or the
rate of the job, whichever is higher, together with any incentive earned.

         When it is necessary for an employee to see a doctor because of an
industrial injury sustained at Neenah Foundry Company, the Company will make an
appointment for him with the doctor. If it is necessary to schedule the
appointment during working hours, the employee will be paid at average earnings
for all time lost in keeping such appointment. Appointments scheduled outside
regular working hours will not be covered under this provision.

         Appointments not scheduled by the Company, whether scheduled during
working hours or after regular working hours, will not be covered under this
provision.


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