<SEC-DOCUMENT>0000031107-20-000006.txt : 20200305
<SEC-HEADER>0000031107-20-000006.hdr.sgml : 20200305
<ACCEPTANCE-DATETIME>20200305161803
ACCESSION NUMBER:		0000031107-20-000006
CONFORMED SUBMISSION TYPE:	DEF 14A
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20200228
FILED AS OF DATE:		20200305
DATE AS OF CHANGE:		20200305
EFFECTIVENESS DATE:		20200305

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			EASTERN CO
		CENTRAL INDEX KEY:			0000031107
		STANDARD INDUSTRIAL CLASSIFICATION:	CUTLERY, HANDTOOLS & GENERAL HARDWARE [3420]
		IRS NUMBER:				060330020
		STATE OF INCORPORATION:			CT
		FISCAL YEAR END:			1228

	FILING VALUES:
		FORM TYPE:		DEF 14A
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-35383
		FILM NUMBER:		20691029

	BUSINESS ADDRESS:	
		STREET 1:		112 BRIDGE ST
		STREET 2:		P O BOX 460
		CITY:			NAUGATUCK
		STATE:			CT
		ZIP:			06770
		BUSINESS PHONE:		2037292255

	MAIL ADDRESS:	
		STREET 1:		112 BRIDGE STREET
		STREET 2:		P O BOX 460
		CITY:			NAUGATUCK
		STATE:			CT
		ZIP:			06770
</SEC-HEADER>
<DOCUMENT>
<TYPE>DEF 14A
<SEQUENCE>1
<FILENAME>def14a_2020.htm
<TEXT>
<html>
  <head>
    <title></title>
    <!-- Licensed to: THE EASTERN COMPANY
         Document created using EDGARfilings PROfile 6.5.1.0
         Copyright 1995 - 2020 Broadridge -->
  </head>
<body bgcolor="#ffffff" style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; text-align: left; color: #000000;">
  <div>
    <div style="text-align: center; font-size: 14pt; font-weight: bold;">&#160;UNITED STATES SECURITIES AND EXCHANGE COMMISSION</div>
    <div style="text-align: center; font-weight: bold;">Washington, D.C. 20549</div>
    <div style="text-align: center; margin-top: 12pt; font-weight: bold;"><font style="font-size: 14pt;">SCHEDULE 14A INFORMATION</font><br>
      <font style="font-size: 12pt;">Proxy Statement Pursuant to Section 14(a) of the</font><br>
      <font style="font-size: 12pt;">Securities Exchange Act of 1934</font><br>
      (Amendment No.)</div>
    <div style="margin-top: 12pt;"><br>
    </div>
    <div style="margin-top: 12pt;"><font style="font-weight: bold;">Filed by the Registrant</font><font style="display: inline-block; text-indent: 0px; font-size: 1px; width: 144pt" id="TRGRRTFtoHTMLTab"> </font><font style="font-weight: bold;">&#8999;<br>
        Filed by a Party other than the Registrant&#160;&#160; <font class="HorizontalTab" style="width: 9pt; font-size: 1px; display: inline-block;"></font><font class="HorizontalTab" style="width: 9pt; font-size: 1px; display: inline-block;">&#160;</font><font class="HorizontalTab" style="width: 9pt; font-size: 1px; display: inline-block;">&#160;</font><font class="HorizontalTab" style="width: 9pt; font-size: 1px; display: inline-block;">&#160;</font><font class="HorizontalTab" style="width: 9pt; font-size: 1px; display: inline-block;">&#160;</font><font class="HorizontalTab" style="width: 9pt; font-size: 1px; display: inline-block;">&#160;</font>&#9723;</font></div>
    <div style="margin-top: 8pt;">Check the appropriate box:</div>
    <div style="margin-top: 8pt;"><br>
      <table cellspacing="0" cellpadding="0" style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; width: 100%; text-align: left; color: #000000;" id="z66ade2c808e640d6b2bb77f8c4f55754">

          <tr>
            <td style="width: 4.19%; vertical-align: top;">
              <div>&#9723;</div>
            </td>
            <td style="width: 95.81%; vertical-align: top;">
              <div>Preliminary Proxy Statement</div>
            </td>
          </tr>
          <tr>
            <td style="width: 4.19%; vertical-align: top;">
              <div>&#9723;</div>
            </td>
            <td style="width: 95.81%; vertical-align: top;">
              <div>Confidential, for Use of the Commission Only (as permitted by Rule 14(a)-6(e) (2))</div>
            </td>
          </tr>
          <tr>
            <td style="width: 4.19%; vertical-align: top;">
              <div>&#8999;</div>
            </td>
            <td style="width: 95.81%; vertical-align: top;">
              <div>Definitive Proxy Statement</div>
            </td>
          </tr>
          <tr>
            <td style="width: 4.19%; vertical-align: top;">
              <div>&#9723;</div>
            </td>
            <td style="width: 95.81%; vertical-align: top;">
              <div>Definitive Additional Materials</div>
            </td>
          </tr>
          <tr>
            <td style="width: 4.19%; vertical-align: top;">
              <div>&#9723;</div>
            </td>
            <td style="width: 95.81%; vertical-align: top;">
              <div>Soliciting Material under Section 240.14a-12</div>
            </td>
          </tr>

      </table>
    </div>
    <div style="margin-top: 8pt;"> <br>
    </div>
    <br>
    <div style="text-align: center; margin-top: 8pt; font-size: 14pt; font-weight: bold;"><u>The Eastern Company</u></div>
    <div style="text-align: center;">(Name of Registrant as Specified In Its Charter)</div>
    <div><br>
    </div>
    <div style="text-align: center;">(Name of Person(s) Filing Proxy Statement, if other than the Registrant)</div>
    <div style="margin-top: 8pt;"><br>
    </div>
    <div style="margin-top: 8pt;">Payment of Filing Fee (Check the appropriate box):</div>
    <br>
    <table cellspacing="0" cellpadding="0" style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; width: 100%; text-align: left; color: #000000;" id="zdda83612f83842a787e58a0de5e2d10c">

        <tr>
          <td style="width: 4.72%; vertical-align: top;">
            <div>&#8999;</div>
          </td>
          <td colspan="2" style="width: 95.28%; vertical-align: top;">
            <div>No fee required</div>
          </td>
        </tr>
        <tr>
          <td style="width: 4.72%; vertical-align: top;">
            <div>&#9723;</div>
          </td>
          <td colspan="2" style="width: 95.28%; vertical-align: top;">
            <div>Fee computed on table below per Exchange Act Rules 14a-6(i)(4) and 0-11.</div>
          </td>
        </tr>
        <tr>
          <td style="width: 4.72%; vertical-align: top;">&#160;</td>
          <td style="width: 4.72%; vertical-align: top;">
            <div>(1)</div>
          </td>
          <td style="width: 90.56%; vertical-align: top;">
            <div>Title of each class of securities to which transaction applies:</div>
          </td>
        </tr>
        <tr>
          <td style="width: 4.72%; vertical-align: top;">&#160;</td>
          <td style="width: 4.72%; vertical-align: top;">
            <div>(2)</div>
          </td>
          <td style="width: 90.56%; vertical-align: top;">
            <div>Aggregate number of securities to which transaction applies:</div>
          </td>
        </tr>
        <tr>
          <td style="width: 4.72%; vertical-align: top;">&#160;</td>
          <td style="width: 4.72%; vertical-align: top;">
            <div>(3)</div>
          </td>
          <td style="width: 90.56%; vertical-align: top;">
            <div>Per unit price or other underlying value of transaction computed pursuant to Exchange Act Rule 0-<font style="display: inline-block; text-indent: 0px; font-size: 1px; width: 12pt" id="TRGRRTFtoHTMLTab">&#160;</font>11<br>
              (Set forth the amount on which the filing fee is calculated and state how it was determined):</div>
          </td>
        </tr>
        <tr>
          <td style="width: 4.72%; vertical-align: top;">&#160;</td>
          <td style="width: 4.72%; vertical-align: top;">
            <div>(4)</div>
          </td>
          <td style="width: 90.56%; vertical-align: top;">
            <div>Proposed maximum aggregate value of transaction:</div>
          </td>
        </tr>
        <tr>
          <td style="width: 4.72%; vertical-align: top;">&#160;</td>
          <td style="width: 4.72%; vertical-align: top;">
            <div>(5)</div>
          </td>
          <td style="width: 90.56%; vertical-align: top;">
            <div>Total fee paid:</div>
          </td>
        </tr>
        <tr>
          <td style="width: 4.72%; vertical-align: top;">
            <div>&#9723;</div>
          </td>
          <td colspan="2" style="width: 95.28%; vertical-align: top;">
            <div>Fee paid previously with preliminary materials.</div>
          </td>
        </tr>
        <tr>
          <td style="width: 4.72%; vertical-align: top;">
            <div>&#9723;</div>
          </td>
          <td colspan="2" style="width: 95.28%; vertical-align: top;">
            <div>Check box if any part of the fee is offset as provided by Exchange Act Rule 0-11(a)(2) and identify the filing for which the offsetting fee was paid previously. Identify the previous filing by registration statement number, or the Form or
              Schedule and the date of its filing.</div>
          </td>
        </tr>
        <tr>
          <td style="width: 4.72%; vertical-align: top;">&#160;</td>
          <td style="width: 4.72%; vertical-align: top;">
            <div>(1)</div>
          </td>
          <td style="width: 90.56%; vertical-align: top;">
            <div>Amount Previously Paid:</div>
          </td>
        </tr>
        <tr>
          <td style="width: 4.72%; vertical-align: top;">&#160;</td>
          <td style="width: 4.72%; vertical-align: top;">
            <div>(2)</div>
          </td>
          <td style="width: 90.56%; vertical-align: top;">
            <div>Form, Schedule or Registration Statement No. :</div>
          </td>
        </tr>
        <tr>
          <td style="width: 4.72%; vertical-align: top;">&#160;</td>
          <td style="width: 4.72%; vertical-align: top;">
            <div>(3)</div>
          </td>
          <td style="width: 90.56%; vertical-align: top;">
            <div>Filing Party:</div>
          </td>
        </tr>
        <tr>
          <td style="width: 4.72%; vertical-align: top;">&#160;</td>
          <td style="width: 4.72%; vertical-align: top;">
            <div>(4)</div>
          </td>
          <td style="width: 90.56%; vertical-align: top;">
            <div>Date Filed:</div>
          </td>
        </tr>

    </table>
    <div style="margin-top: 8pt;"><br>
    </div>
    <div style="clear: both; margin-top: 10pt; margin-bottom: 10pt;" id="DSPFPageBreakArea">
      <div style="page-break-after:always;" id="DSPFPageBreak">
        <hr noshade="noshade" style="margin: 4px 0px; width: 100%; border-width: 0; height: 2px; color: #000000; background-color: #000000; clear: both;"></div>
    </div>
    <div><br>
    </div>
    <div><br>
    </div>
    <div><br>
    </div>
    <div style="text-align: center; text-indent: -45pt; margin-left: 45pt; font-size: 12pt; font-weight: bold;">THE EASTERN COMPANY</div>
    <div style="text-align: center; font-size: 12pt; font-weight: bold;">112 Bridge Street</div>
    <div style="text-align: center; font-size: 12pt; font-weight: bold;">P.O. Box 460</div>
    <div style="text-align: center; font-size: 12pt; font-weight: bold;">Naugatuck, CT 06770-0460</div>
    <div style="text-align: center; font-size: 12pt; font-weight: bold;">______________</div>
    <div><br>
    </div>
    <div style="text-align: center; font-weight: bold;">NOTICE OF ANNUAL MEETING OF SHAREHOLDERS</div>
    <div style="text-align: center; font-weight: bold;">April 29, 2020</div>
    <div style="text-align: center; margin-bottom: 14pt; font-size: 12pt; font-weight: bold;">______________</div>
    <div style="text-align: justify; text-indent: 24pt;">The Annual Meeting of Shareholders of The Eastern Company (&#8220;Eastern&#8221; or the &#8220;Company&#8221;) will be held on April 29, 2020 at 11:00 a.m., local time, at the office of the Company, 112 Bridge Street,
      Naugatuck, Connecticut 06770-0460, for the following purposes:</div>
    <div><br>
    </div>
    <div><br>
    </div>
    <div style="text-align: justify;">
      <div>
        <table cellspacing="0" cellpadding="0" style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; width: 100%; text-align: left; color: #000000;" class="DSPFListTable" id="ze2795935989f4ddf804a9103cc14b7de">

            <tr>
              <td style="width: 36pt;"><br>
              </td>
              <td style="width: 18pt; vertical-align: top; align: right;">1.</td>
              <td style="width: auto; vertical-align: top; text-align: justify;">
                <div>To elect seven directors.</div>
              </td>
            </tr>

        </table>
      </div>
    </div>
    <div style="text-align: justify;">
      <div>
        <table cellspacing="0" cellpadding="0" style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; width: 100%; text-align: left; color: #000000;" class="DSPFListTable" id="z9b6632e9f6b84e43ac6949f142fb58d1">

            <tr>
              <td style="width: 36pt;"><br>
              </td>
              <td style="width: 18pt; vertical-align: top; align: right;">2.</td>
              <td style="width: auto; vertical-align: top; text-align: justify;">
                <div>To approve and adopt The Eastern Company 2020 Stock Incentive Plan.</div>
              </td>
            </tr>

        </table>
      </div>
    </div>
    <div style="text-align: justify;">
      <div>
        <table cellspacing="0" cellpadding="0" style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; width: 100%; text-align: left; color: #000000;" class="DSPFListTable" id="zbfc852fac6354a6ebbd669275d17e24c">

            <tr>
              <td style="width: 36pt;"><br>
              </td>
              <td style="width: 18pt; vertical-align: top; align: right;">3.</td>
              <td style="width: auto; vertical-align: top; text-align: justify;">
                <div>To cast a nonbinding advisory vote to approve the compensation of the named executive officers.</div>
              </td>
            </tr>

        </table>
      </div>
    </div>
    <div style="text-align: justify;">
      <div>
        <table cellspacing="0" cellpadding="0" style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; width: 100%; text-align: left; color: #000000;" class="DSPFListTable" id="zf47c6139a02241acae5fb47c898d3acf">

            <tr>
              <td style="width: 36pt;"><br>
              </td>
              <td style="width: 18pt; vertical-align: top; align: right;">4.</td>
              <td style="width: auto; vertical-align: top; text-align: justify;">
                <div>To ratify the Audit Committee&#8217;s recommendation and the Board of Directors&#8217; appointment of Fiondella, Milone &amp; LaSaracina LLP as the independent registered public accounting firm to audit the consolidated financial statements of the
                  Company and its subsidiaries for fiscal year 2020.</div>
              </td>
            </tr>

        </table>
      </div>
    </div>
    <div style="text-align: justify;">
      <div>
        <table cellspacing="0" cellpadding="0" style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; width: 100%; text-align: left; color: #000000;" class="DSPFListTable" id="zca8b81e184ba43c092b14b3610e6db42">

            <tr>
              <td style="width: 36pt;"><br>
              </td>
              <td style="width: 18pt; vertical-align: top; align: right;">5.</td>
              <td style="width: auto; vertical-align: top; text-align: justify;">
                <div>To transact such other business as may properly come before the annual meeting of shareholders or any adjournment thereof.</div>
              </td>
            </tr>

        </table>
      </div>
    </div>
    <div><br>
    </div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 24pt;">The Board of Directors has fixed March 2, 2020 as the record date for the determination of shareholders entitled to notice of, and to vote at, the annual meeting or any adjournment thereof.</div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 24pt;">Your vote is very important. Whether or not you plan to attend the annual meeting of shareholders or any adjournment thereof, we urge you to submit your proxy as promptly as possible.&#160; If you attend
      the annual meeting and vote in person before your proxy is exercised, your proxy will be deemed revoked and will not be used.</div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 24pt;">All shareholders are cordially invited to attend the annual meeting of shareholders or any adjournment thereof, and management looks forward to seeing you there.</div>
    <div><br>
    </div>
    <div style="text-align: center; margin-left: 252pt;">By order of the Board of Directors,</div>
    <div style="margin-bottom: 12pt;"><br>
    </div>
    <div style="text-align: center; margin-left: 252pt;">Theresa P. Dews</div>
    <div style="text-align: center; margin-left: 252pt; font-style: italic;">&#160;Secretary</div>
    <div><br>
    </div>
    <div>March 5, 2020</div>
    <div><br>
    </div>
    <div><br>
    </div>
    <div><br>
    </div>
    <div style="clear: both; margin-top: 10pt; margin-bottom: 10pt;" id="DSPFPageBreakArea">
      <div style="page-break-after:always;" id="DSPFPageBreak">
        <hr noshade="noshade" style="margin: 4px 0px; width: 100%; border-width: 0; height: 2px; color: #000000; background-color: #000000; clear: both;"></div>
    </div>
    <div style="text-align: center; font-weight: bold;">PROXY STATEMENT</div>
    <div style="text-align: center; font-size: 8pt; font-weight: bold;">of</div>
    <div style="text-align: center; font-weight: bold;">THE EASTERN COMPANY</div>
    <div><br>
    </div>
    <div style="text-align: center; font-weight: bold;">for the Annual Meeting of Shareholders</div>
    <div style="text-align: center; font-weight: bold;">To Be Held on April 29, 2020</div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 24pt;">The Board of Directors of The Eastern Company (&#8220;Eastern,&#8221; the &#8220;Company,&#8221; &#8220;we,&#8221; &#8220;us&#8221; or &#8220;our&#8221;) is furnishing this proxy statement in connection with its solicitation of proxies for use at the 2020
      Annual Meeting of Shareholders and at any adjournment thereof (the &#8220;Annual Meeting&#8221;). This proxy statement is first being furnished to shareholders on or about March 5, 2020.</div>
    <div><br>
    </div>
    <div style="text-align: center; font-weight: bold;">GENERAL INFORMATION REGARDING VOTING AT THE ANNUAL MEETING</div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 24pt;">The Board of Directors of Eastern (the &#8220;Board&#8221;) has fixed the close of business on March 2, 2020 as the record date for determining the shareholders entitled to notice of, and to vote at, the Annual
      Meeting. On the record date, there were<font style="font-weight: bold;">&#160;</font>6,240,705<font style="font-weight: bold;">&#160;</font>outstanding shares of Eastern common stock, no par value (&#8220;Common Shares&#8221;), with each Common Share entitled to one vote.</div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 24pt;">The presence, in person or by proxy, of holders of a majority of the voting power of the Common Shares entitled to vote at the Annual Meeting is necessary to constitute a quorum.</div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 24pt;">If you grant a proxy to the persons named on Eastern&#8217;s proxy card, the Common Shares represented by your proxy will be voted at the Annual Meeting, either in accordance with the directions indicated
      on the proxy card, or, if no directions are indicated, in accordance with the recommendations of the Board contained in this Proxy Statement and on the form of proxy card. If a proxy is signed and returned without specifying choices, the Common
      Shares represented thereby will be voted (1) &#8220;<font style="font-weight: bold;">FOR ALL</font>&#8221; on the proposal to elect: Mr. Fredrick D. DiSanto, Mr. John W. Everets, Mr. Charles W. Henry, Mr. Michael A. McManus, Jr., Mr. James A. Mitarotonda, Mrs.
      Peggy B. Scott and Mr. August M. Vlak to the Board, each for a one-year term and until their successors have been duly elected and qualified; (2) <font style="font-weight: bold;">FOR</font> the approval and adoption of The Eastern Company 2020 Stock
      Incentive Plan; (3)<font style="font-weight: bold;"> FOR</font> the approval, on an advisory basis, of the compensation of the named executive officers; and (4) <font style="font-weight: bold;">FOR </font>the proposal to ratify the appointment of
      Fiondella, Milone &amp; LaSaracina LLP as the Company&#8217;s independent registered public accounting firm for the Company&#8217;s 2020 fiscal year. The Company is not aware of any matters other than those set forth herein which will be presented for action at
      the Annual Meeting. If other matters should be presented, the persons named in the proxy intend to vote such proxies in accordance with their best judgment.</div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 24pt;">If you submit a proxy and then wish to change your vote, you will need to revoke the proxy that you have submitted.&#160; A shareholder may revoke his or her proxy at any time before it is exercised by
      voting in person at the Annual Meeting or by timely delivery of a properly executed, later-dated proxy card or a written revocation of his or her proxy.&#160; A later-dated proxy card or written revocation must be received before the Annual Meeting by the
      Corporate Secretary of the Company, at 112 Bridge Street, P.O. Box 460, Naugatuck, CT&#160; 06770-0460, or it must be delivered to the Corporate Secretary of the Company at the Annual Meeting before proxies are exercised. You may also revoke your proxy by
      submitting a new proxy via the Internet at <u>www.proxyvote.com</u> or by telephone, no later than 11:59 p.m. Eastern Time on April 28, 2020. Attendance at the Annual Meeting does not, without further action, revoke the appointment of a proxy;
      however, your proxy may be revoked either by giving notice of revocation or voting in person at the Annual Meeting before your proxy is exercised.</div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 24pt;">The Common Shares are listed under the ticker symbol &#8220;EML&#8221; on The NASDAQ Stock Market LLC (&#8220;NASDAQ&#8221;).</div>
    <div><br>
    </div>
    <div style="text-align: justify; font-weight: bold;">Solicitation of Proxies</div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 24pt;">The cost of solicitation of proxies will be borne by the Company. On approximately March 5, 2020, we mailed a Notice of internet availability of Proxy Materials advising our shareholders that they
      could view all of the proxy materials online or request a paper or e-mail copy of the proxy materials. This online access format expedites the delivery of materials, reduces printing and postage costs and reduces the environmental impact of our
      Annual Meeting.</div>
    <div><br>
    </div>
    <div style="text-align: justify; font-weight: bold;">How to Request a Paper or E-mail Copy of the Proxy Materials</div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 24pt;">You may receive a paper or e-mail copy of the proxy materials free of charge by requesting a copy through one of the following methods:</div>
    <div><br>
    </div>
    <table cellspacing="0" cellpadding="0" style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; width: 100%; text-align: left; color: #000000;" id="z9e3307fe17824267ab2bedc7fabcf178">

        <tr>
          <td style="width: 8.02%; vertical-align: top;">&#160;</td>
          <td style="width: 43.83%; vertical-align: top;">
            <div style="text-align: justify; margin-left: 36pt;">1) BY INTERNET:</div>
          </td>
          <td style="width: 48.15%; vertical-align: top;">
            <div style="text-align: justify; margin-left: 36pt;">www.proxyvote.com</div>
          </td>
        </tr>
        <tr>
          <td style="width: 8.02%; vertical-align: top;">&#160;</td>
          <td style="width: 43.83%; vertical-align: top;">
            <div style="text-align: justify; margin-left: 36pt;">2) BY TELEPHONE:</div>
          </td>
          <td style="width: 48.15%; vertical-align: top;">
            <div style="text-align: justify; margin-left: 36pt;">1-800-579-1639</div>
          </td>
        </tr>
        <tr>
          <td style="width: 8.02%; vertical-align: top;">&#160;</td>
          <td style="width: 43.83%; vertical-align: top;">
            <div style="text-align: justify; margin-left: 36pt;">3) BY E-MAIL:</div>
          </td>
          <td style="width: 48.15%; vertical-align: top;">
            <div style="text-align: justify; margin-left: 36pt;"><u>sendmaterial@proxyvote.com</u></div>
          </td>
        </tr>

    </table>
    <div style="clear: both; margin-top: 10pt; margin-bottom: 10pt;" id="DSPFPageBreakArea">
      <div style="page-break-after:always;" id="DSPFPageBreak">
        <hr noshade="noshade" style="margin: 4px 0px; width: 100%; border-width: 0; height: 2px; color: #000000; background-color: #000000; clear: both;"></div>
    </div>
    <!--PROfilePageNumberReset%Num%2%%%-->
    <div style="font-weight: bold;">Voting at the Annual Meeting</div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 36pt;">Except in the case of a contested election, directors will be elected by a majority of the votes cast by the shares entitled to vote in the election of directors at the annual meeting of shareholders
      at which a quorum is present.&#160; Consequently, a nominee will be elected as a director if the votes cast for the nominee&#8217;s election as a director exceed the votes cast against such nominee&#8217;s election as a director.&#160; However, in a contested election,
      directors will be elected by a plurality of the votes cast at the annual meeting of shareholders.&#160; An election will be considered to be contested if, as of the record date for the annual meeting of shareholders, there are more nominees for election
      to the Board than there are positions on the Board to be filled by election at the annual meeting.&#160; Because the election of directors at this year&#8217;s Annual Meeting is not a contested election, a nominee for election as a director at the Annual
      Meeting will be elected if the votes cast for the nominee exceed the votes cast against the nominee.</div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 36pt;">If a director is subject to reelection in an uncontested election by a majority of the votes cast, but a majority of the votes are cast against his or her reelection, then the Board will request that
      the director tender his or her resignation.&#160; The Board will nominate for election or reelection as a director only those candidates who agree to tender, promptly following the annual meeting of shareholders at which they are elected or reelected as a
      director, irrevocable resignations that will be effective upon:&#160; (a) their failure to receive the required vote at the annual meeting of shareholders at which they face reelection; and (b) the acceptance of such resignation by the Board.&#160; In
      addition, the Board will fill vacancies on the Board and new directorships only with candidates who agree to tender, promptly following their appointment to the Board, the same form of resignation tendered by other directors.&#160; If an incumbent
      director fails to receive the required vote for reelection, the Board will act on an expedited basis to determine whether to accept or reject the director&#8217;s resignation.&#160; A director whose resignation is under consideration must abstain from
      participating in any decision regarding that resignation.</div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 36pt;">Each matter to be acted upon at the Annual Meeting other than the election of directors will be approved if the votes cast in favor of the matter exceed the votes cast opposing the matter, assuming a
      quorum is present.</div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 36pt;">A broker &#8220;non-vote&#8221; occurs when a nominee holding shares for a beneficial owner does not vote on a particular proposal because the nominee does not have discretionary voting power with respect to
      that item and has not received instructions from the beneficial owner. An abstaining vote or a broker &#8220;non-vote&#8221; is considered to be present for purposes of determining a quorum but is not deemed to be a vote cast. As a result, abstentions and broker
      &#8220;non-votes&#8221; are not included in the tabulation of the voting results for the election of directors or the other matters to be acted on at the Annual Meeting, each of which requires the approval of a majority of the votes cast, and therefore do not
      have the effect of votes of opposition in such tabulations.</div>
    <div><br>
    </div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 24pt; font-weight: bold;">The Board recommends voting:</div>
    <div><br>
    </div>
    <div style="text-align: justify; margin-left: 36pt;"><font style="font-weight: bold;">&#8220;FOR ALL</font>&#8221;<font style="font-weight: bold;"> on the proposal to elect Mr. Fredrick D. DiSanto, Mr. John W. Everets, Mr. Charles W. Henry, Mr. Michael A. McManus,
        Jr., Mr. James A. Mitarotonda, Mrs. Peggy B. Scott and Mr. August M. Vlak as directors.</font></div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: -18pt; margin-left: 54pt; font-weight: bold;">FOR the approval and adoption of The Eastern Company 2020 Stock Incentive Plan.</div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 36pt; font-weight: bold;">FOR the approval of the compensation of the named executive officers.</div>
    <div><br>
    </div>
    <div style="text-align: justify; margin-left: 36pt; font-weight: bold;">FOR the ratification of the appointment of Fiondella, Milone &amp; LaSaracina LLP as the Company&#8217;s independent registered public accounting firm for the 2020 fiscal year.</div>
    <div style="clear: both; margin-top: 10pt; margin-bottom: 10pt;" id="DSPFPageBreakArea">
      <div style="text-align: center;" id="DSPFPageNumberArea"><font style="font-size: 8pt; font-weight: normal; font-style: normal; font-family: 'Times New Roman',Times,serif;" id="DSPFPageNumber">2</font></div>
      <div style="page-break-after:always;" id="DSPFPageBreak">
        <hr noshade="noshade" style="margin: 4px 0px; width: 100%; border-width: 0; height: 2px; color: #000000; background-color: #000000; clear: both;"></div>
    </div>
    <div style="text-align: center; font-weight: bold;">Item No. 1</div>
    <div><br>
    </div>
    <div style="text-align: center; font-weight: bold;">ELECTION OF DIRECTORS</div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 24pt;">At the Annual Meeting, seven directors will be elected to serve for one-year terms, which expire in 2021 or until a successor is duly elected and qualified. Mr. Fredrick D. DiSanto, Mr. John W.
      Everets, Mr. Charles W. Henry, Mr. Michael A. McManus, Jr., Mr. James A. Mitarotonda, Mrs. Peggy B. Scott and Mr. August M. Vlak, are the Company&#8217;s nominees for election at the Annual Meeting. All nominees are current directors whose terms expire in
      2020.</div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 24pt;">Unless otherwise specified in your proxy, the persons with power of substitution named in the proxy card will vote your Common Shares &#8220;<font style="font-weight: bold;">FOR ALL</font>&#8221; of the
      Company&#8217;s nominees. If a nominee is unable or unwilling to accept nomination, the proxies will be voted for the election of such other person as may be recommended by the Board.&#160; However, the Board has no reason to believe that the Company&#8217;s nominees
      will be unavailable for election at the Annual Meeting. Approval of this resolution requires the affirmative vote of a majority of the votes duly cast by the Common Shares represented at the Annual Meeting that are entitled to vote on the matter.</div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 24pt;"><font style="font-weight: bold;">The Board recommends a vote &#8220;FOR ALL</font>&#8221;<font style="font-weight: bold;"> on the proposal to elect Mr. Fredrick D. DiSanto, Mr. John W. Everets, Mr. Charles W.
        Henry, Mr. Michael A. McManus, Jr., Mr. James A. Mitarotonda, Mrs. Peggy B. Scott and Mr. August M. Vlak as directors.</font></div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 24pt;">Each director has furnished the biographical information set forth below with respect to his or her present principal occupation, business and other affiliations. Information regarding each
      director&#8217;s beneficial ownership of equity securities of the Company is provided under &#8220;Security Ownership&#8221; in this proxy statement. Unless otherwise indicated, each director has been employed in the principal occupation or employment listed for at
      least the past five years.</div>
    <div><br>
    </div>
    <div><br>
    </div>
    <div><br>
    </div>
    <div style="text-align: center; font-weight: bold;">Company Nominees for Election at the 2020 Annual Meeting</div>
    <div style="text-align: center; font-weight: bold;">For a one-year term expiring in 2021</div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 24pt;"><font style="font-weight: bold;">Fredrick D. DiSanto</font>, age 58, is the Chairman and Chief Executive Officer of The Ancora Group, a holding company that oversees three investment advisors, and
      has served in such capacities since 2014 and 2006, respectively. Mr. DiSanto was the President and Chief Operating Officer of Maxus Investment Group from 1998 until December of 2000. In January 2001, after Maxus Investment Group was sold to Fifth
      Third Bank, Mr. DiSanto served as Executive Vice President and Manager of Fifth Third Bank&#8217;s Investment Advisor Division.</div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 24pt;">Mr. DiSanto is an experienced public company director and has knowledge and background in finance, strategic planning, governance and international business. He currently serves as a director for
      Regional Brands, Inc. and Alithya Group Inc. and previously served on the respective Boards of Directors of Axia Net Media Corporation and LNB Bancorp, Inc.</div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 24pt;">Mr. DiSanto has served as a director of the Company since 2016. Mr. DiSanto is Chairman of the Audit Committee and also serves on the Nominating and Governance Committees.</div>
    <div><br>
    </div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 24pt;"><font style="font-weight: bold;">John W. Everets</font>, age 73, has been a Partner in Arcturus Capital LLC, Boston since 2016. Mr. Everets was the Chairman and Chief Executive Officer of SBM
      Financial&#160;in Portland, Maine, from May 2010 until October 2016. Mr. Everets was also Chairman and Chief Executive Officer of The Bank of Maine from May 2010 until October 2016. Mr. Everets&#8217; directorships at public companies in the past five years
      include Independent Director at Medallion Bank (since 2019), Medallion Financial Corp. (since 2017) and The Bank of Maine (2010 to 2015), which merged into Camden National Bank. Mr. Everets also serves on the Board of Directors of Newman&#8217;s Own
      Foundation. Mr. Everets is a former director of Financial Security Assurance, FSA, Dairy Mart and The Martin Currie Business Trust Edinburgh.</div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 24pt;">Mr. Everets has served as a director of the Company since 1993 and brings to the Board extensive knowledge of the Company&#8217;s business. Mr. Everets serves on the Audit and Nominating and Corporate
      Governance Committees.</div>
    <div><br>
    </div>
    <div style="clear: both; margin-top: 10pt; margin-bottom: 10pt;" id="DSPFPageBreakArea">
      <div style="text-align: center;" id="DSPFPageNumberArea"><font style="font-size: 8pt; font-weight: normal; font-style: normal;" id="DSPFPageNumber">3</font></div>
      <div style="page-break-after:always;" id="DSPFPageBreak">
        <hr noshade="noshade" style="margin: 4px 0px; width: 100%; border-width: 0; height: 2px; color: #000000; background-color: #000000; clear: both;"></div>
    </div>
    <div><br>
    </div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 24pt;"><font style="font-weight: bold;">Charles W. Henry</font>, age 70, is an attorney and partner with the law firm Henry &amp; Federer, LLP located in Woodbury, Connecticut.</div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 24pt;">Mr. Henry brings to the Board extensive knowledge of the Company&#8217;s business. Mr. Henry&#8217;s independent legal expertise is valuable to the Company if, and when, matters of law or regulation arise in the
      normal course of the Company&#8217;s business.&#160; His law firm does not provide any services to the Company.</div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 24pt;">Mr. Henry has served as a director of the Company since 1989. Mr. Henry serves on the Compensation, Executive, Nominating and Corporate Governance and the Environment, Health and Safety Committees.</div>
    <div><br>
    </div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 24pt;"><font style="font-weight: bold;">Michael A. McManus, Jr.</font>, age 77, is the former Chairman, President and Chief Executive Officer of Misonix, Inc., a publicly traded medical device company. Mr.
      McManus previously served as President of New York Bankcorp, a New York Stock Exchange company, until its sale in 1998. Earlier, he served as President of Jamcor Pharmaceuticals, as a Vice President of strategic planning at Pfizer, and as an
      executive vice president of MacAndrews and Forbes, Revlon, Inc., and Pantry Pride.</div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 24pt;">Mr. McManus<font style="font-size: 12pt;">&#160;</font>is an experienced public company director and has expertise in financial matters, sales and marketing, strategic acquisitions, government relations
      and international business matters. Mr. McManus&#8217;<font style="font-size: 12pt;">&#160;</font>public company directorships in the past five years include director of Novavax, Inc., a vaccine company (since 1998). He previously served on the respective
      Boards of Directors of the Communications Satellite Corporation, Arrhythmia Research Technology, Inc., National Wireless Holdings, American Home Mortgage, A. Schulman, Inc. and Guest Services, Inc.</div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 24pt;">Mr. McManus has been a director of the Company since 2015. Mr. McManus is the Chairman of the Company&#8217;s Compensation Committee and also serves on the Audit, Environment, Health and Safety and
      Executive Committees.</div>
    <div><br>
    </div>
    <div><br>
    </div>
    <div>
      <div style="text-align: justify; text-indent: 24pt;"><font style="font-weight: bold;">James A. Mitarotonda, </font>age 65, has served as the Chairman of the Board, President and Chief Executive Officer of Barington Capital Group, L.P., an investment
        firm, since 1991. Mr. Mitarotonda is an experienced public company director. Mr. Mitarotonda currently serves as director of OMNOVA Solutions Inc., where he has been a member of the Board since 2015. Over the past five years, Mr. Mitarotonda has
        also served as a director of The Pep Boys &#8211; Manny, Moe &amp; Jack from 2006 to 2016 and was Chairman of the Board from 2008 - 2009; A. Shulman, Inc. from 2005 to 2018; Ebix, Inc. for a portion of 2015; and Avon Products, Inc. from 2018 - 2020. Mr.
        Mitarotonda also served as a director of Barington/Hilco Acquisition Corp. from 2015 to 2018, where he was Chairman of the Board from 2015 to 2017. Mr. Mitarotonda serves as a member of the Board of Trustees for Queens College.</div>
      <div><br>
      </div>
      <div style="text-align: justify; text-indent: 24pt;">Mr. Mitarotonda has served as a director of the Company since 2015. The Board appointed Mr. Mitarotonda to serve as Chairman of the Board effective January 2016. Mr. Mitarotonda is the Chairman of
        the Nominating and Corporate Governance Committee and the Executive Committee, and he also serves on the Compensation Committee.</div>
    </div>
    <div><br>
    </div>
    <br>
    <div style="text-align: justify; text-indent: 24pt;"><font style="font-weight: bold;">Peggy B. Scott</font>, age 68, has been the Chairperson of the Board of Cleco Corporate Holdings LLC (NASDAQ: CNL), a public utility holding company, since April
      2016. She also served as Interim Chief Executive Officer of Cleco Group LLC and Cleco Corporate Holdings LLC from February 2017 until January 2018.</div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 24pt;">Previously, Mrs. Scott served as the Executive Vice President, Chief Operating Officer, Chief Financial Officer and Treasurer of Blue Cross Blue Shield of Louisiana (BCBS) from 2005 to 2015, and as
      Chief Strategy Officer from 2005-2012, overseeing growth strategies and operational performance in challenging markets. Prior to working at BCBS, Mrs. Scott served as Executive Vice President of U.S. and International Operations and Chief Financial
      Officer at Pan-American Life Insurance guiding operations in seven foreign countries. She also was Executive Vice President of Corporate Operations and Chief Financial Officer at Novant Health and General Health. Earlier, Mrs. Scott was an office
      Managing Partner with Deloitte, a global public accounting firm, advising diverse companies, including manufacturers and industrial companies.</div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 24pt;">Mrs. Scott has served as a director with Health Insurance Innovations, Inc. (NASDAQ: HIIQ) since May 2019. She has also been a director of the Blue Cross Blue Shield of Louisiana Foundation, since
      2006, and former Chairperson and President. She serves on the Advisory Board of ClearData Networks, Inc. and Health Catalyst Capital Management LLC.</div>
    <div><br>
    </div>
    <div><br>
    </div>
    <div><br>
    </div>
    <div style="clear: both; margin-top: 10pt; margin-bottom: 10pt;" id="DSPFPageBreakArea">
      <div style="text-align: center;" id="DSPFPageNumberArea"><font style="font-size: 8pt; font-weight: normal; font-style: normal;" id="DSPFPageNumber">4</font></div>
      <div style="page-break-after:always;" id="DSPFPageBreak">
        <hr noshade="noshade" style="margin: 4px 0px; width: 100%; border-width: 0; height: 2px; color: #000000; background-color: #000000; clear: both;"></div>
    </div>
    <div><br>
    </div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 24pt;">Mrs. Scott was elected as a director of the Company at the last Annual Meeting, which was held on May 1, 2019. She is the Chairperson of the Company&#8217;s Environment, Health and Safety Committee and
      also serves on the Audit and Compensation Committees. Mrs. Scott is a Certified Public Accountant (CPA) and also Certified in Valuations (ABV and CVA) and Financial Forensics (CFF). She holds a Professional Director Certification from the American
      College of Corporate Directors.</div>
    <div><br>
    </div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 24pt;"><font style="font-weight: bold;">August M. Vlak</font>, age 53, was appointed President and Chief Executive Officer of the Company on January 1, 2016. From 2012 to 2015, Mr. Vlak served as a senior
      advisor to Barington Capital Group, L.P. Prior to that, he was a partner at Katzenbach Partners, a senior advisor at Booz &amp; Company, and a consultant at McKinsey &amp; Company. At his prior positions, Mr. Vlak&#8217;s work focused on growth strategy
      and operational performance improvement at more than 50 companies, including leading domestic and global industrial enterprises. Mr. Vlak has served as a director since 2017. Mr. Vlak also serves on the Company&#8217;s Environment, Health and Safety
      Committee.</div>
    <div style="clear: both; margin-top: 10pt; margin-bottom: 10pt;" id="DSPFPageBreakArea">
      <div style="text-align: center;" id="DSPFPageNumberArea"><font style="font-size: 8pt; font-weight: normal; font-style: normal;" id="DSPFPageNumber">5</font></div>
      <div style="page-break-after:always;" id="DSPFPageBreak">
        <hr noshade="noshade" style="margin: 4px 0px; width: 100%; border-width: 0; height: 2px; color: #000000; background-color: #000000; clear: both;"></div>
    </div>
    <div><br>
    </div>
    <div><br>
    </div>
    <div style="text-align: center; margin-bottom: 12pt; font-weight: bold;">Item No. 2</div>
    <div style="text-align: center; text-indent: -45pt; margin-left: 45pt; font-weight: bold;">APPROVAL AND ADOPTION OF 2020 STOCK INCENTIVE PLAN</div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 36pt; margin-bottom: 12pt;">The Eastern Company 2020 Stock Incentive Plan (the &#8220;2020 Plan&#8221;) was adopted by the Board on February 19, 2020, subject to shareholder approval. If the 2020 Plan is approved and
      adopted by the shareholders at the Annual Meeting, it will become effective as of the date of such approval (the &#8220;Approval Date&#8221;). No further awards may be made under the Company&#8217;s 2010 Executive Stock Incentive Plan, as amended (the &#8220;Prior Plan&#8221;),
      which expired by its terms on February 9, 2020, and following the Approval Date, no awards will be made under the Company&#8217;s existing Directors&#8217; Fee Program, as amended (the &#8220;Prior Directors&#8217; Fee Program&#8221;). A copy of the 2020 Plan is attached to this
      proxy statement as Exhibit A, and section references in this Item are references to sections of the 2020 Plan. Approval of the 2020 Plan by the shareholders requires the affirmative vote of a majority of the votes cast on this matter at the Annual
      Meeting.</div>
    <div style="text-align: justify; text-indent: 36pt; margin-bottom: 12pt;">If this proposal is not approved, we believe we would be at a significant disadvantage against our competitors for recruiting, retaining and motivating those individuals who can
      contribute significantly to the management, growth and profitability of our business and are therefore critical to our success. Additionally, stock-based compensation increases our directors, executives&#8217; and other key employees&#8217; proprietary interest
      in the Company&#8217;s business, increases their personal interest in the Company&#8217;s continued success and progress and encourages employees to remain in the employ of the Company.</div>
    <div style="text-align: justify; margin-bottom: 12pt;">(1)<font style="display: inline-block; text-indent: 0px; font-size: 1px; width: 36pt" id="TRGRRTFtoHTMLTab">&#160;</font><font style="font-style: italic;">General Plan Provisions</font></div>
    <div style="text-align: justify; text-indent: 36pt; margin-bottom: 12pt;">Pursuant to the 2020 Plan, salaried officers and other key employees of the Company or any of its parent or subsidiary corporations, and the non-employee directors of the
      Company, may be granted awards under the 2020 Plan. <font style="font-style: italic;">See</font> Section 4. The number of salaried officers who are eligible to receive awards under the 2020 Plan is approximately three, the number of other key
      employees who are eligible to receive awards under the 2020 Plan is approximately seventeen, and the number of non-employee directors who are eligible to receive awards under the 2020 Plan is seven persons.&#160; The total number of Common Shares that may
      be issued under awards granted under the 2020 Plan may not exceed (i) 500,000 Common Shares, <font style="font-style: italic;">plus</font> (ii) the number of Common Shares available under the Prior Plan as of the Approval Date, <font style="font-style: italic;">plus</font> (iii) the number of Common Shares related to any award outstanding under the Prior Plan as of the Approval Date that thereafter lapses, expires, terminates, ceases to be exercisable or is forfeited without
      the issuance of such Common Shares, plus (iv) the number of Common Shares available for payment of directors&#8217; fees under the Prior Directors&#8217; Fee Program and previously registered on a Registration Statement on Form S-8 filed by the Company. <font style="font-style: italic;">See</font> Section 5.&#160; A total of 178,500 Common Shares were authorized but unissued under the Prior Plan immediately prior to its termination on February 9, 2020, and a total of approximately 222,830 Common Shares
      underlying awards that were outstanding as of such date have subsequently lapsed, expired, terminated, ceased to be exercisable or been forfeited without the issuance of such Common Shares, which will become available for grants under the 2020 Plan,
      if approved.<font style="background-color: #FFFF00;">&#160;</font>After anticipated grants under the Prior Directors&#8217; Fee Program in March 2020 of approximately 6,000 Common Shares, a total of 16,000 Common Shares will remain available under the Prior
      Directors&#8217; Fee Program and will become available for grants under the 2020 Plan, if approved. The closing price of a Common Share on March 2, 2020 was $25.48.</div>
    <div style="text-align: justify; text-indent: 36pt; margin-bottom: 12pt;">The 2020 Plan will be administered by the Compensation Committee of the Board (the &#8220;Committee&#8221;).&#160; The Committee will consist of not less than two non-employee directors of the
      Company. <font style="font-style: italic;">See</font> Section 3.</div>
    <div style="text-align: justify; text-indent: 36pt; margin-bottom: 12pt;">The minimum vesting period for awards under the 2020 Plan, other than awards to non-employee directors, will be one year, subject to a limited carve-out for up to 5% of the
      Common Shares reserved for issuance under the 2020 Plan.</div>
    <div style="text-align: justify; margin-bottom: 12pt;">(2)<font style="display: inline-block; text-indent: 0px; font-size: 1px; width: 36pt" id="TRGRRTFtoHTMLTab">&#160;</font><font style="font-style: italic;">Stock Awards</font></div>
    <div style="text-align: justify; text-indent: 36pt; margin-bottom: 12pt;">The 2020 Plan authorizes the Committee to grant various types of stock awards.</div>
    <div style="text-align: justify; text-indent: 36pt; margin-left: 36pt; margin-bottom: 12pt;">(a)<font style="display: inline-block; text-indent: 0px; font-size: 1px; width: 36pt" id="TRGRRTFtoHTMLTab">&#160;</font><font style="font-style: italic;">Stock
        Options</font>.&#160; The 2020 Plan authorizes the grant of both &#8220;incentive stock options&#8221; (&#8220;ISOs&#8221;) and &#8220;nonqualified stock options.&#8221;&#160; <font style="font-style: italic;">See</font> Section 6.1.&#160; However, an ISO may not be granted to a non-employee
      director.&#160; <font style="font-style: italic;">See</font> Section 6.1(b).&#160; Stock options must be issued at an exercise price that is not less than the fair market value of the Common Shares on the date of grant.&#160; <font style="font-style: italic;">See</font>
      Section 6.1(a).</div>
    <div style="text-align: justify; text-indent: 36pt; margin-left: 36pt; margin-bottom: 12pt;">The 2020 Plan provides that the exercise price of a stock option may be paid either in cash or with Common Shares.&#160; <font style="font-style: italic;">See</font>
      Section 6.1(e).&#160; The time or times at which each stock option will become exercisable and the date of expiration of each stock option will be fixed by the Committee, but the term of an option intended to be an ISO may not be longer than ten years
      from the date of grant.&#160; <font style="font-style: italic;">See</font> Section 6.1(c).&#160; In addition, all stock options will expire not later</div>
    <div style="clear: both; margin-top: 10pt; margin-bottom: 10pt;" id="DSPFPageBreakArea">
      <div style="text-align: center;" id="DSPFPageNumberArea"><font style="font-size: 8pt; font-weight: normal; font-style: normal;" id="DSPFPageNumber">6</font></div>
      <div style="page-break-after:always;" id="DSPFPageBreak">
        <hr noshade="noshade" style="margin: 4px 0px; width: 100%; border-width: 0; height: 2px; color: #000000; background-color: #000000; clear: both;"></div>
    </div>
    <div style="margin-bottom: 12pt;"><br>
    </div>
    <div style="text-align: justify; text-indent: 36pt; margin-left: 36pt; margin-bottom: 12pt;">than three months after the date of termination of an optionee&#8217;s employment or service as a non-employee director.&#160; However, if an optionee terminates
      employment or service as a non-employee director due to disability, or if an optionee terminates employment or service as a non-employee director due to retirement at or after age 65, the three month period is extended to twelve months.&#160; In addition,
      if an optionee dies prior to the termination of his or her employment or service as a non-employee director, or within the three-month or twelve-month period noted above, the optionee&#8217;s stock options will not expire until twelve months following the
      date of the optionee&#8217;s death. <font style="font-style: italic;">See</font> Section 6.1(d). Stock options are not transferable other than by will or the laws of descent and distribution. <font style="font-style: italic;">See</font> Section 6.1(h).</div>
    <div style="text-align: justify; text-indent: 36pt; margin-left: 36pt; margin-bottom: 12pt;">Under the 2020 Plan, an employee who owns directly or indirectly more than ten percent of the total combined voting power of all classes of stock of the
      Company cannot receive an ISO unless the exercise price of the option is not less than 110% of the fair market value of the Common Shares on the date of grant and the option cannot be exercised after five years from the date of grant.&#160; <font style="font-style: italic;">See</font> Section 6.1(b).</div>
    <div style="text-align: justify; text-indent: 36pt; margin-left: 36pt; margin-bottom: 12pt;">Under Section 422 of the Internal Revenue Code of 1986, as amended (the &#8220;Code&#8221;), stock options will not be considered to be ISOs to the extent the fair market
      value of the Common Shares with respect to which such options first become exercisable in any one calendar year exceeds $100,000.</div>
    <div style="text-align: justify; text-indent: 36pt; margin-left: 36pt; margin-bottom: 12pt;">The Committee, in its discretion, may also set other conditions relating to ISOs and nonqualified stock options (including vesting requirements). <font style="font-style: italic;">See</font> Section 6.1(c).</div>
    <div style="text-align: justify; text-indent: 36pt; margin-left: 36pt; margin-bottom: 12pt;">(b)<font style="display: inline-block; text-indent: 0px; font-size: 1px; width: 36pt" id="TRGRRTFtoHTMLTab">&#160;</font><font style="font-style: italic;">Restricted






        Stock and Restricted Stock Units</font>.&#160; The 2020 Plan authorizes the grant of shares of restricted stock and restricted stock units (&#8220;RSUs&#8221;).&#160; The Committee determines the vesting provisions and restrictions which will apply to the restricted
      stock and RSUs. <font style="font-style: italic;">See</font> Section 6.2(a) and Section 6.2(b).</div>
    <div style="text-align: justify; text-indent: 36pt; margin-left: 36pt; margin-bottom: 12pt;">Restricted stock may be evidenced in book entry-form or certificated, or evidenced in such other manner as the Committee determines. While the restricted stock
      is subject to restrictions, the Committee may require any certificates representing the stock to be held by the Company, along with a stock power endorsed in blank by the employee or the non-employee director.&#160; RSUs may be settled in Common Shares,
      cash, or a combination of the two, as determined by the Committee.&#160; <font style="font-style: italic;">See</font> Section 6.2(d).</div>
    <div style="text-align: justify; text-indent: 36pt; margin-left: 36pt; margin-bottom: 12pt;">Except as otherwise set forth in an applicable award agreement or as determined by the Committee with respect to terminations resulting from specified causes,
      if an employee terminates employment or a non-employee director terminates service as a director, any shares of restricted stock or RSUs then subject to restrictions will be forfeited.&#160; <font style="font-style: italic;">See</font> Section 6.2(c).</div>
    <div style="text-align: justify; text-indent: 36pt; margin-left: 36pt; margin-bottom: 12pt;">(c)<font style="display: inline-block; text-indent: 0px; font-size: 1px; width: 36pt" id="TRGRRTFtoHTMLTab">&#160;</font><font style="font-style: italic;">Dividends
        and Dividend Equivalents</font>.&#160; Under the terms of the 2020 Plan, at the discretion of the Compensation Committee and as described in the award agreement, dividends issued on restricted stock are credited to the participant&#8217;s account and are paid
      to the participant only to the extent that the underlying award vests. The Committee may provide that such dividends are either (i) paid in cash, in kind or in Common Shares having a fair market value equal to the amount of the dividend or (ii)
      automatically reinvested in additional restricted stock or held in kind.&#160; In the event of a payment of dividends on Common Shares, the Committee may credit RSUs with dividend equivalents. Under the terms of the 2020 Plan, such dividend equivalents
      are subject to the same terms and conditions as the underlying RSU award to which they relate. No dividends or dividend equivalents will be paid unless and until the award associated with the dividend or dividend equivalent has vested. <font style="font-style: italic;">See</font> Section 6.2(e).</div>
    <div style="text-align: justify; text-indent: 36pt; margin-left: 36pt; margin-bottom: 12pt;">(d)<font style="display: inline-block; text-indent: 0px; font-size: 1px; width: 36pt" id="TRGRRTFtoHTMLTab">&#160;</font><font style="font-style: italic;">Non-Employee






        Directors&#8217; Fee Program</font>.&#160; Under the 2020 Plan, the Committee may grant awards to non-employee directors in the form of Common Shares pursuant to the Company&#8217;s Directors&#8217; Fee Program as may be in effect from time to time. Such awards are not
      required to be evidenced by an award agreement. <font style="font-style: italic;">See</font> Section 6.3.</div>
    <div style="text-align: justify; text-indent: 36pt; margin-left: 36pt; margin-bottom: 12pt;">(e)<font style="display: inline-block; text-indent: 0px; font-size: 1px; width: 36pt" id="TRGRRTFtoHTMLTab">&#160;</font><font style="font-style: italic;">Other
        Stock Awards</font>.&#160; The Committee may also, in its discretion, grant employees or non-employee directors other types of stock-based awards, including stock appreciation rights (&#8220;SARs&#8221;), performance awards, phantom securities and dividend
      equivalents. Any such awards may be settled in Common Shares, cash or other property, as determined by the Committee and provided in the applicable award agreement.&#160; <font style="font-style: italic;">See</font> Section 6.4.</div>
    <div style="text-align: justify; margin-bottom: 12pt;">(3)<font style="display: inline-block; text-indent: 0px; font-size: 1px; width: 36pt" id="TRGRRTFtoHTMLTab">&#160;</font><font style="font-style: italic;">Amendment</font></div>
    <div style="text-align: justify; text-indent: 36pt; margin-bottom: 12pt;">The Board may amend the 2020 Plan at any time.&#160; However, the Board may not, without prior shareholder approval, make any amendment which operates:&#160; (a) to abolish the Committee,
      change the qualification of its members, or withdraw its authority to interpret and administer the 2020 Plan; (b) to make any material change in the class of eligible employees under the 2020 Plan; (c) to increase the total number of shares for which
      awards can be granted under the 2020 Plan or to adjust the price</div>
    <div style="clear: both; margin-top: 10pt; margin-bottom: 10pt;" id="DSPFPageBreakArea">
      <div style="text-align: center;" id="DSPFPageNumberArea"><font style="font-size: 8pt; font-weight: normal; font-style: normal;" id="DSPFPageNumber">7</font></div>
      <div style="page-break-after:always;" id="DSPFPageBreak">
        <hr noshade="noshade" style="margin: 4px 0px; width: 100%; border-width: 0; height: 2px; color: #000000; background-color: #000000; clear: both;"></div>
    </div>
    <div style="margin-bottom: 12pt;"><br>
    </div>
    <div style="text-align: justify; text-indent: 36pt; margin-bottom: 12pt;">at which Common Shares can be acquired under a previously-granted award (except due to a reorganization, consolidation or other change in the capitalization of the Company); (d)
      to extend the term of the 2020 Plan or the maximum ISO period; (e) to decrease the minimum ISO price; or (f) which otherwise requires shareholder approval under the rules of any stock exchange on which the Company&#8217;s securities are then listed.&#160; <font style="font-style: italic;">See</font> Section 10.</div>
    <div style="text-align: justify; margin-bottom: 12pt;">(4)<font style="display: inline-block; text-indent: 0px; font-size: 1px; width: 36pt" id="TRGRRTFtoHTMLTab">&#160;</font><font style="font-style: italic;">Summary of Federal Income Tax Consequences of
        Awards</font></div>
    <div style="text-align: justify; text-indent: 36pt; margin-bottom: 12pt;">The following is a brief summary of the principal United States federal income tax consequences of Awards and transactions under the 2020 Plan. This summary is not intended to be
      exhaustive and, among other things, does not describe local, state or foreign tax consequences.</div>
    <div><font style="font-weight: bold;">AWARD TAXABLE EVENTS<br>
      </font><br>
    </div>
    <table cellspacing="0" cellpadding="0" style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; width: 100%; text-align: left; color: #000000;" id="z2af1c1cf2d514decafabc0d05005a593">

        <tr>
          <td colspan="2" style="width: 100%; vertical-align: top;">
            <div style="text-align: justify; margin-left: 36pt; font-weight: bold;">Stock Options and SARs</div>
          </td>
        </tr>
        <tr>
          <td style="width: 6.84%; vertical-align: top;">&#160;</td>
          <td style="width: 93.16%; vertical-align: top;">
            <div style="text-align: justify; margin-left: 36pt;">A participant will not recognize any income at the time a stock option or SAR is granted, nor will the Company be entitled to a deduction at that time.</div>
            <div style="text-align: justify; margin-left: 36pt; font-style: italic;">&#160;</div>
            <div style="text-indent: 8pt;">&#8226;<font style="display: inline-block; text-indent: 0px; font-size: 1px; width: 9pt" id="TRGRRTFtoHTMLTab">&#160;</font><font style="font-style: italic;">When a nonqualified stock option is exercised</font>, the
              participant will recognize ordinary income in an amount equal to the excess of the fair market value of the Common Shares received as of the date of exercise over the exercise price.</div>
            <div>&#160;</div>
            <div style="text-indent: 8pt;">&#8226;<font style="display: inline-block; text-indent: 0px; font-size: 1px; width: 9pt" id="TRGRRTFtoHTMLTab">&#160;</font><font style="font-style: italic;">When an ISO is exercised</font>, a participant will not recognize
              any income at the time of exercise. However, the excess of the fair market value of the Common Shares on the date of exercise over the exercise price paid could create a liability under the alternative minimum tax.</div>
            <div>&#160;</div>
            <div style="text-indent: 17pt;">o<font style="display: inline-block; text-indent: 0px; font-size: 1px; width: 9pt" id="TRGRRTFtoHTMLTab">&#160;</font>If a participant disposes of the Common Shares acquired on exercise of an ISO after the later of
              two years after the date of grant of the ISO and one year after the date of exercise of the ISO (the &#8220;holding period&#8221;), the gain (i.e., the excess of the proceeds received on sale over the exercise price paid), if any, will be long-term
              capital gain eligible for favorable tax rates.</div>
            <div>&#160;</div>
            <div style="text-indent: 17pt;">o<font style="display: inline-block; text-indent: 0px; font-size: 1px; width: 9pt" id="TRGRRTFtoHTMLTab">&#160;</font>If the participant disposes of the Common Shares prior to the end of the holding period, the
              disposition is a &#8220;disqualifying disposition.&#8221; The participant will then recognize ordinary income in the year of the disqualifying disposition equal to the excess, if any, of the lesser of (i) the fair market value of the Common Shares on the
              date of exercise or (ii) the amount received for the Common Shares, over the exercise price paid. The balance of the gain or the loss, if any, will be long-term or short-term capital gain or loss, depending on how long the Common Shares were
              held by the participant prior to disposition. If a participant recognizes ordinary income as a result of a disqualifying disposition, the Company will be entitled to a deduction in the same amount as the participant recognizes ordinary
              income.</div>
            <div>&#160;</div>
            <div style="text-indent: 17pt;">o<font style="display: inline-block; text-indent: 0px; font-size: 1px; width: 9pt" id="TRGRRTFtoHTMLTab">&#160;</font>An employee must notify the Company if he or she makes a disqualifying disposition of any Common
              Shares acquired upon the exercise of an ISO.&#160; <font style="font-style: italic;">See</font> Section 13.</div>
            <div>&#160;</div>
            <div style="text-indent: 8pt;">&#8226;<font style="display: inline-block; text-indent: 0px; font-size: 1px; width: 9pt" id="TRGRRTFtoHTMLTab">&#160;</font><font style="font-style: italic;">When a SAR is exercised</font>, a participant will recognize
              ordinary income in an amount equal to the cash received or, if the SAR is paid in Common Shares, the fair market value of the Common Shares received as of the date of exercise.</div>
            <div>&#160;</div>
            <div style="text-align: justify; margin-left: 36pt; font-weight: bold;">Tax Withholding/Deduction</div>
            <div style="text-align: justify; margin-left: 36pt;">&#160;</div>
            <div style="text-align: justify; margin-left: 36pt;">Upon exercise of stock options or SARs, the Committee may withhold from any award, or require that the employee pay the Company, an amount sufficient to satisfy any applicable tax withholding
              obligations. The Committee may permit a participant to satisfy a tax withholding requirement with respect to the exercise of a stock option or SAR by directing the Company to withhold Common Shares to which the participant is otherwise
              entitled as the result of such exercise. <font style="font-style: italic;">See</font> Section 12.</div>
            <div style="text-align: justify; margin-left: 36pt;">&#160;</div>
            <div style="text-align: justify; margin-left: 36pt;">The Company will not be entitled to a tax deduction at the time of grant of a nonqualified stock option but will be entitled to a tax deduction in the same amount as the participant
              recognizes income at the time of exercise. The Company is not entitled to a deduction as a result of the grant or exercise of an ISO.</div>
          </td>
        </tr>

    </table>
    <div><br>
    </div>
    <div style="clear: both; margin-top: 10pt; margin-bottom: 10pt;" id="DSPFPageBreakArea">
      <div style="text-align: center;" id="DSPFPageNumberArea"><font style="font-size: 8pt; font-weight: normal; font-style: normal;" id="DSPFPageNumber">8</font></div>
      <div style="page-break-after:always;" id="DSPFPageBreak">
        <hr noshade="noshade" style="margin: 4px 0px; width: 100%; border-width: 0; height: 2px; color: #000000; background-color: #000000; clear: both;"></div>
    </div>
    <div><br>
    </div>
    <div><br>
    </div>
    <table cellspacing="0" cellpadding="0" style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; width: 100%; text-align: left; color: #000000;" id="z11df5a44cb504d8492bd66f04b597112">

        <tr>
          <td colspan="2" style="width: 100%; vertical-align: top;">
            <div style="text-align: justify; margin-left: 36pt;"><font style="font-weight: bold;">RSUs and</font>&#160;<font style="font-weight: bold;">Restricted Stock</font></div>
          </td>
        </tr>
        <tr>
          <td style="width: 6.84%; vertical-align: top;">&#160;</td>
          <td style="width: 93.16%; vertical-align: top;">
            <div style="text-align: justify; margin-left: 36pt;">A participant will not recognize any income at the time a RSU or share of restricted stock is granted, nor will the Company be entitled to a deduction at that time.<br>
              &#160;</div>
            <div style="text-indent: 8pt;">&#8226;<font style="display: inline-block; text-indent: 0px; font-size: 1px; width: 9pt" id="TRGRRTFtoHTMLTab">&#160;</font><font style="font-style: italic;">Upon settlement of a RSU</font>: The participant will recognize
              ordinary income in an amount equal to the fair market value of the Common Shares received or, if the RSU is paid in cash, the amount payable.</div>
            <div>&#160;</div>
            <div style="text-indent: 8pt;">&#8226;<font style="display: inline-block; text-indent: 0px; font-size: 1px; width: 9pt" id="TRGRRTFtoHTMLTab">&#160;</font><font style="font-style: italic;">Upon vesting of shares of restricted stock</font>: In the year in
              which shares of restricted stock are no longer subject to a substantial risk of forfeiture (i.e., in the year that the shares vest), the participant will recognize ordinary income in an amount equal to the excess of the fair market value of
              the shares on the date of vesting over the amount, if any, the participant paid for the shares.</div>
            <div>&#160;</div>
            <div style="text-align: justify; margin-left: 36pt;">An employee may, however, elect pursuant to section 83(b) of the Code within 30 days after being granted restricted stock to recognize ordinary income in the year of receipt instead of the
              year of vesting. If an election is made, the amount of income recognized by the participant will be equal to the excess of the fair market value of the shares on the date of receipt over the amount, if any, the participant paid for the
              shares.</div>
            <div>&#160;</div>
            <div style="text-align: justify; margin-left: 36pt;">A participant must notify the Company if he or she makes a Section 83(b) election.&#160; See Section 13.</div>
            <div>&#160;</div>
            <div style="text-align: justify; margin-left: 36pt; font-weight: bold;">Tax Withholding/Deduction</div>
            <div>&#160;</div>
            <div style="text-align: justify; margin-left: 36pt;">Payroll taxes are required to be withheld from an employee on the amount of ordinary income recognized by the participant.</div>
            <div>&#160;</div>
            <div style="text-align: justify; margin-left: 36pt;">The Company will be entitled to a tax deduction in the same amount as the employee recognizes income.</div>
          </td>
        </tr>
        <tr>
          <td colspan="2" style="width: 100%; vertical-align: top;">
            <div>&#160;</div>
            <div style="text-align: justify; margin-left: 36pt; font-weight: bold;">Cash Awards</div>
          </td>
        </tr>
        <tr>
          <td style="width: 6.84%; vertical-align: top;">&#160;</td>
          <td style="width: 93.16%; vertical-align: top;">
            <div style="text-align: justify; margin-left: 36pt;">A participant will not recognize any income at the time a cash-based award is granted. The participant will recognize income at the time that cash is paid to the participant pursuant to a
              cash-based award, in the amount paid.</div>
            <div>&#160;</div>
            <div style="text-align: justify; margin-left: 36pt; font-weight: bold;">Tax Withholding/Deduction</div>
            <div style="text-align: justify; margin-left: 36pt;">The Company will satisfy an employee&#8217;s tax withholding obligations by withholding cash from payment. The Company will be entitled to a tax deduction in the same amount as the employee
              recognizes income.</div>
          </td>
        </tr>

    </table>
    <div style="text-align: justify; margin-top: 12pt; margin-bottom: 12pt;">(5)<font style="display: inline-block; text-indent: 0px; font-size: 1px; width: 36pt" id="TRGRRTFtoHTMLTab">&#160;</font><font style="font-style: italic;">Material Differences from the
        Prior Plan</font></div>
    <div style="text-align: justify; text-indent: 36pt; margin-bottom: 12pt;">In addition to the authorization of 500,000 additional Common Shares for issuance, the 2020 Plan incorporates the following proposed changes from the Prior Plan, among others:</div>
    <div>
      <table cellspacing="0" cellpadding="0" style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin-bottom: 12pt; width: 100%; text-align: left; color: #000000;" class="DSPFListTable" id="z393978ad4b664a42bc91d592955c838a">

          <tr>
            <td style="width: 72pt; vertical-align: top; align: right;">
              <div style="margin-left: 54pt; margin-bottom: 12pt;">&#8226;</div>
            </td>
            <td style="width: auto; vertical-align: top;">
              <div style="text-align: justify; margin-bottom: 12pt;">provides for a one-year minimum vesting period for all awards, subject to a limited carve-out for 5% of the share reserve;</div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table cellspacing="0" cellpadding="0" style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin-bottom: 12pt; width: 100%; text-align: left; color: #000000;" class="DSPFListTable" id="z8f9362300da5412598b4e60a867a7747">

          <tr>
            <td style="width: 72pt; vertical-align: top; align: right;">
              <div style="margin-left: 54pt; margin-bottom: 12pt;">&#8226;</div>
            </td>
            <td style="width: auto; vertical-align: top;">
              <div style="text-align: justify; margin-bottom: 12pt;">limits share recycling back into the share reserve to Common Shares underlying awards that, in whole or in part, are forfeited, terminated, expire unexercised, are settled in cash in lieu
                of Common Shares, are exchanged for other Awards or are released from a reserve for failure to meet the maximum payout, and excludes from share recycling any Common Shares tendered to satisfy an exercise price, Common Shares withheld to
                satisfy tax withholding and Common Shares not delivered under SAR awards;</div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table cellspacing="0" cellpadding="0" style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin-bottom: 12pt; width: 100%; text-align: left; color: #000000;" class="DSPFListTable" id="z6b0f66dea20a4178b680aee9b2eacf59">

          <tr>
            <td style="width: 72pt; vertical-align: top; align: right;">
              <div style="margin-left: 54pt; margin-bottom: 12pt;">&#8226;</div>
            </td>
            <td style="width: auto; vertical-align: top;">
              <div style="text-align: justify; margin-bottom: 12pt;">provides for the payment of Common Shares to non-employee directors in payment of directors&#8217; fees, which were previously provided for under the Prior Directors&#8217; Fee Program;</div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table cellspacing="0" cellpadding="0" style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin-bottom: 12pt; width: 100%; text-align: left; color: #000000;" class="DSPFListTable" id="z348189ede4554ccd9434586247189e0b">

          <tr>
            <td style="width: 72pt; vertical-align: top; align: right;">
              <div style="margin-left: 54pt; margin-bottom: 12pt;">&#8226;</div>
            </td>
            <td style="width: auto; vertical-align: top;">
              <div style="text-align: justify; margin-bottom: 12pt;">provides for the issuance of RSUs and sets parameters around the payment of dividends and dividend equivalents on restricted stock and RSUs, including a clarification that no dividends or
                dividend equivalents are payable prior to vesting of the applicable award under any circumstance; and</div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table cellspacing="0" cellpadding="0" style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin-bottom: 12pt; width: 100%; text-align: left; color: #000000;" class="DSPFListTable" id="zdfac3aad13764a56a7802eadfad759ea">

          <tr>
            <td style="width: 72pt; vertical-align: top; align: right;">
              <div style="margin-left: 54pt; margin-bottom: 12pt;">&#8226;</div>
            </td>
            <td style="width: auto; vertical-align: top;">
              <div style="text-align: justify; margin-bottom: 12pt;">provides for termination on February 19, 2030 (ten years after the date of the adoption by the Board of the 2020 Plan).</div>
            </td>
          </tr>

      </table>
    </div>
    <div style="clear: both; margin-top: 10pt; margin-bottom: 10pt;" id="DSPFPageBreakArea">
      <div style="text-align: center;" id="DSPFPageNumberArea"><font style="font-size: 8pt; font-weight: normal; font-style: normal;" id="DSPFPageNumber">9</font></div>
      <div style="page-break-after:always;" id="DSPFPageBreak">
        <hr noshade="noshade" style="margin: 4px 0px; width: 100%; border-width: 0; height: 2px; color: #000000; background-color: #000000; clear: both;"></div>
    </div>
    <div><br>
    </div>
    <div style="text-align: justify; margin-bottom: 12pt;">(6)<font style="display: inline-block; text-indent: 0px; font-size: 1px; width: 36pt" id="TRGRRTFtoHTMLTab">&#160;</font><font style="font-style: italic;">Equity Compensation Plan Information</font></div>
    <div style="text-align: justify; text-indent: 36pt; margin-bottom: 12pt;">The following table sets forth information regarding securities authorized for issuance under the Company&#8217;s equity compensation plans as of December 28, 2019, which at that date,
      consisted of the Prior Plan.</div>
    <table cellspacing="0" cellpadding="0" style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; width: 100%; text-align: left; color: #000000;" id="z2e8f03f0347f4c8b92f9fb9b70167a06">

        <tr>
          <td style="width: 28.46%; vertical-align: bottom;">
            <div style="text-indent: -9pt; margin-left: 9pt; font-weight: bold;">Plan category</div>
          </td>
          <td style="width: 23.84%; vertical-align: bottom; border-bottom: 2px solid #000000;">
            <div>
              <div style="text-align: center; font-weight: bold;">Number of securities to be issued upon exercise of outstanding options, warrants and rights</div>
            </div>
          </td>
          <td style="width: 23.85%; vertical-align: bottom; border-bottom: 2px solid #000000;">
            <div>
              <div style="text-align: center; font-weight: bold;">Weighted average exercise price of outstanding options, warrants and rights</div>
            </div>
          </td>
          <td style="width: 23.85%; vertical-align: bottom; border-bottom: 2px solid #000000;">
            <div>
              <div style="text-align: center; font-weight: bold;">Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column (a))</div>
            </div>
          </td>
        </tr>
        <tr>
          <td style="width: 28.46%; vertical-align: top;">&#160;</td>
          <td style="width: 23.84%; vertical-align: top;">
            <div style="text-align: center; font-weight: bold;">(a)</div>
          </td>
          <td style="width: 23.85%; vertical-align: top;">
            <div style="text-align: center; font-weight: bold;">(b)</div>
          </td>
          <td style="width: 23.85%; vertical-align: top;">
            <div style="text-align: center; font-weight: bold;">(c)</div>
          </td>
        </tr>
        <tr>
          <td style="width: 28.46%; vertical-align: bottom;">
            <div style="text-indent: -9pt; margin-left: 9pt; font-weight: bold;">Equity compensation plans approved by security holders</div>
          </td>
          <td style="width: 23.84%; vertical-align: bottom;">
            <div style="text-align: center;">96,728</div>
          </td>
          <td style="width: 23.85%; vertical-align: bottom; text-align: center;">
            <div style="font-family: 'Times New Roman',Times,serif; text-indent: -9pt; margin-left: 9pt;">22.36</div>
          </td>
          <td style="width: 23.85%; vertical-align: bottom;">
            <div style="text-align: center; font-size: 12pt;"><font style="font-size: 10pt;">178</font>,<font style="font-size: 10pt;">500</font><sup style="vertical-align: text-top; line-height: 1; font-size: smaller;">1</sup></div>
          </td>
        </tr>
        <tr>
          <td style="width: 28.46%; vertical-align: bottom;">
            <div style="text-indent: -9pt; margin-left: 9pt; font-weight: bold;">Equity compensation plans not approved by security holders</div>
          </td>
          <td style="width: 23.84%; vertical-align: bottom; border-bottom: 2px solid #000000;">
            <div>
              <div style="text-align: center;">&#8212;</div>
            </div>
          </td>
          <td style="width: 23.85%; vertical-align: bottom; border-bottom: 2px solid rgb(0, 0, 0); text-align: center;">
            <div>
              <div style="font-family: 'Times New Roman',Times,serif;">&#8212;</div>
            </div>
          </td>
          <td style="width: 23.85%; vertical-align: bottom; border-bottom: 2px solid #000000;">
            <div>
              <div style="text-align: center;">&#8212;</div>
            </div>
          </td>
        </tr>
        <tr>
          <td style="width: 28.46%; vertical-align: top;">
            <div style="text-indent: -9pt; margin-left: 9pt; font-weight: bold;">Total</div>
          </td>
          <td style="width: 23.84%; vertical-align: bottom; border-bottom: 4px double #000000;">
            <div>
              <div style="text-align: center;">96,728</div>
            </div>
          </td>
          <td style="width: 23.85%; vertical-align: bottom; border-bottom: 4px double rgb(0, 0, 0); text-align: center;">
            <div>
              <div style="font-family: 'Times New Roman',Times,serif;">22.36</div>
            </div>
          </td>
          <td style="width: 23.85%; vertical-align: bottom; border-bottom: 4px double #000000;">
            <div>
              <div style="text-align: center;">178,500</div>
            </div>
          </td>
        </tr>

    </table>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: -4.5pt; margin-left: 40.5pt; font-size: 8pt;"><sup style="vertical-align: text-top; line-height: 1; font-size: smaller;">1</sup><font style="font-size: 10pt;">&#160;</font>Includes Common Shares available for future issuance under the Prior Plan.&#160; No new grants may be made under
      the Prior Plan, which expired by its terms on February 9, 2020 but continues to govern awards outstanding under the Prior Plan.</div>
    <div><br>
    </div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 36pt; margin-bottom: 12pt;">No new grants may be made under the Prior Plan, which expired by its terms on February 9, 2020. No grants are expected to be made under the 2020 Plan prior to its approval by
      shareholders.</div>
    <div style="text-align: justify; text-indent: 36pt; margin-bottom: 12pt;"> <br>
    </div>
    <div style="text-align: justify; margin-bottom: 12pt;">(7)<font style="display: inline-block; text-indent: 0px; font-size: 1px; width: 36pt" id="TRGRRTFtoHTMLTab">&#160;</font><font style="font-style: italic;">New Plan Benefits</font></div>
    <div style="text-align: justify; text-indent: 36pt; margin-bottom: 12pt;">Future grants under the 2020 Plan will be made at the discretion of the Committee and, accordingly, are not yet determinable. In addition, the value of awards granted under the
      2020 Plan will depend on a number of factors, including the fair market value of the Common Shares on future dates and the exercise decisions made by the participants. Consequently, it is not possible to determine the benefits that might be received
      by participants receiving discretionary grants under the 2020 Plan.</div>
    <div style="text-align: justify; text-indent: 36pt; margin-bottom: 12pt;"><font style="font-weight: bold;">The Board of Directors recommends a vote FOR the approval and adoption of The Eastern Company 2020 Executive Stock Incentive Plan. </font>Proxies






      will be voted FOR the proposal unless otherwise specified.</div>
    <div style="clear: both; margin-top: 10pt; margin-bottom: 10pt;" id="DSPFPageBreakArea">
      <div style="text-align: center;" id="DSPFPageNumberArea"><font style="font-size: 8pt; font-weight: normal; font-style: normal;" id="DSPFPageNumber">10</font></div>
      <div style="page-break-after:always;" id="DSPFPageBreak">
        <hr noshade="noshade" style="margin: 4px 0px; width: 100%; border-width: 0; height: 2px; color: #000000; background-color: #000000; clear: both;"></div>
    </div>
    <div style="margin-bottom: 12pt;"><br>
    </div>
    <div><br>
    </div>
    <div style="text-align: center; margin-bottom: 12pt; font-weight: bold;">Item No. 3</div>
    <div style="text-align: center; margin-bottom: 12pt; font-weight: bold;">ADVISORY VOTE ON THE COMPENSATION OF THE NAMED EXECUTIVE OFFICERS</div>
    <div style="text-align: justify; text-indent: 22.5pt;">We ask our shareholders to cast a non-binding advisory vote to approve the compensation of our named executive officers (each a &#8220;named executive officer&#8221; and collectively, the &#8220;named executive
      officers&#8221;) described in the Compensation Discussion and Analysis and in the tabular and accompanying narrative disclosure regarding named executive officer compensation.&#160; We encourage you to read the Compensation Discussion and Analysis and the
      tables and narratives beginning on page 21 for the 2019 compensation of our named executive officers.</div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 24pt; margin-bottom: 12pt;">As required by Section 14A(a)(1) of the Securities Exchange Act of 1934, as amended (the &#8220;Exchange Act&#8221;), our shareholders are entitled to vote at the Annual Meeting to approve
      the compensation of the Company&#8217;s named executive officers, as disclosed in this proxy statement, pursuant to Item 402 of Regulation S-K (&#8220;Say-on-Pay Vote&#8221;).&#160; At our 2017 annual meeting of shareholders held on May 3, 2017, an advisory vote was held
      on the frequency of the Say-on-Pay Vote.&#160; In such vote, the Company&#8217;s shareholders voted to hold an advisory vote on the compensation of the Company&#8217;s named executive officers once every year.</div>
    <div style="text-align: justify; text-indent: 24pt; margin-bottom: 12pt;">We believe that the compensation of our named executive officers for 2019 was consistent with our compensation philosophy and our performance described in the Compensation
      Discussion and Analysis. We are asking our shareholders to indicate their support for our named executive officers&#8217; compensation arrangements as described in this proxy statement.&#160; The vote is not intended to address any specific item of
      compensation, but rather the overall compensation of our named executive officers described in this proxy statement.</div>
    <div style="text-align: justify; text-indent: 24pt; margin-bottom: 12pt;">While our Board values the opinions expressed by shareholders and intends to carefully consider the result of the shareholder vote on this proposal, the vote is an advisory vote
      only, and is not binding on the Company, the Board or the Compensation Committee.&#160; In considering the outcome of this advisory vote, the Board will review and consider all Common Shares voted in favor of the proposal and not in favor of the
      proposal.&#160; Abstentions and broker non-votes will have no impact on the outcome of this advisory vote.</div>
    <div style="text-align: justify; text-indent: 24pt; margin-bottom: 12pt;">The Board recommends that shareholders approve the 2019 compensation of our named executive officers as disclosed in the Compensation Discussion and Analysis, and in the tabular
      and accompanying narrative disclosure of this proxy statement by voting FOR the following resolution:</div>
    <div style="text-align: justify; text-indent: 36pt; margin-bottom: 12pt;">RESOLVED, that the 2019 compensation paid to the Company&#8217;s named executive officers, as disclosed pursuant to Item 402 of Regulation S-K, including the Compensation Discussion
      and Analysis, compensation tables and narrative discussion, is hereby APPROVED, on a non-binding advisory basis.</div>
    <div style="text-align: justify; text-indent: 24pt; margin-bottom: 12pt;"><font style="font-weight: bold;">The Board recommends a vote FOR the approval of the 2019 compensation of our named executive officers as disclosed in this proxy statement
        pursuant to Item 402 of Regulation S-K. </font>Proxies will be voted FOR the proposal unless otherwise specified.</div>
    <div style="clear: both; margin-top: 10pt; margin-bottom: 10pt;" id="DSPFPageBreakArea">
      <div style="text-align: center;" id="DSPFPageNumberArea"><font style="font-size: 8pt; font-weight: normal; font-style: normal;" id="DSPFPageNumber">11</font></div>
      <div style="page-break-after:always;" id="DSPFPageBreak">
        <hr noshade="noshade" style="margin: 4px 0px; width: 100%; border-width: 0; height: 2px; color: #000000; background-color: #000000; clear: both;"></div>
    </div>
    <div style="margin-bottom: 12pt;"><br>
    </div>
    <div style="text-align: center; font-weight: bold;">Item No. 4</div>
    <div><br>
    </div>
    <div style="text-align: center; font-weight: bold;">RATIFICATION OF APPOINTMENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM</div>
    <div><br>
    </div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 24pt;">The Audit Committee has recommended, and the Board has approved, continuing the services of Fiondella, Milone &amp; LaSaracina LLP for the 2020 fiscal year. These services may include an integrated
      audit of the consolidated financial statements and internal control over financial reporting of the Company; assistance in connection with filing the Company&#8217;s Annual Report on Form 10-K with the Securities and Exchange Commission (the &#8220;SEC&#8221;); a
      review of the Company&#8217;s quarterly interim financial statements; assistance in connection with the filing of&#160; the Company&#8217;s Quarterly Reports on Form 10-Q; assistance on financial accounting and reporting matters; preparation of state and federal tax
      returns; audits of employee benefit plans; and meetings with the Audit Committee. The Board recommends that shareholders vote at the Annual Meeting FOR ratification of the<font style="font-size: 12pt;">&#160;</font>Audit Committee&#8217;s recommendation and the
      Board of Directors&#8217; appointment of Fiondella, Milone &amp; LaSaracina LLP to audit the consolidated financial statements of the Company for the 2020 fiscal year.</div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 24pt;">It is the policy of our Audit Committee to approve all audit and acceptable non-audit engagements provided by the independent registered public accounting firm regarding the scope of the services
      provided by the independent registered public accounting firm. These services may include audit, audit-related, tax and other services. The independent registered public accounting firm and management are required to report to the Audit Committee
      regarding the extent of services provided by the independent registered public accounting firm in accordance with this policy.</div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 24pt;">The proposal to ratify the appointment of Fiondella, Milone &amp; LaSaracina LLP as the Company&#8217;s independent registered public accounting firm will be approved if, at the Annual Meeting at which a
      quorum is present, the votes cast in favor of the proposal exceed the votes cast opposing the proposal. The Audit Committee will consider the outcome of the shareholder vote in connection with the selection of Fiondella, Milone &amp; LaSaracina LLP
      but is not bound by the vote, If the appointment is not ratified by shareholders, the Audit Committee will consider and advise the Board as to whether a different registered public accounting firm should be selected.</div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 24pt;">We have been advised that representatives of Fiondella, Milone &amp; LaSaracina LLP will be present at the Annual Meeting and will be available to respond to appropriate questions. Such
      representatives will have an opportunity to make a statement, if they desire to do so,</div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 24pt;">All fees related to audit services described below were approved in advance by our Audit Committee.</div>
    <div><br>
    </div>
    <table cellspacing="0" cellpadding="0" style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; width: 100%; text-align: left; color: #000000;" id="z1f642d4ff3fd4263b564e0cce999f19f">

        <tr>
          <td style="width: 52.49%; vertical-align: top;">&#160;</td>
          <td style="width: 3.35%; vertical-align: top;">&#160;</td>
          <td colspan="2" style="width: 18.12%; vertical-align: top; border-bottom: #000000 2px solid;">
            <div style="text-align: center; font-weight: bold;">2019</div>
          </td>
          <td style="width: 8.62%; vertical-align: top;">&#160;</td>
          <td colspan="2" style="width: 17.42%; vertical-align: top; border-bottom: #000000 2px solid;">
            <div style="text-align: center;">2018</div>
          </td>
        </tr>
        <tr>
          <td style="width: 52.49%; vertical-align: top;">
            <div style="text-align: justify;">Audit Fees &#8211; Annual &amp; quarterly reviews</div>
          </td>
          <td style="width: 3.35%; vertical-align: top;">&#160;</td>
          <td style="width: 3.99%; vertical-align: bottom; text-align: right;">
            <div style="font-family: 'Times New Roman',Times,serif; font-weight: bold;">$</div>
          </td>
          <td style="width: 14.13%; vertical-align: bottom; text-align: center;">
            <div style="font-family: 'Times New Roman',Times,serif; font-weight: bold;">506,000</div>
          </td>
          <td style="width: 8.62%; vertical-align: top;">&#160;</td>
          <td style="width: 3.99%; vertical-align: bottom; text-align: right;">
            <div style="font-family: 'Times New Roman',Times,serif;">$</div>
          </td>
          <td style="width: 13.43%; vertical-align: bottom; text-align: center;">
            <div style="font-family: 'Times New Roman',Times,serif;">405,000</div>
          </td>
        </tr>
        <tr>
          <td style="width: 52.49%; vertical-align: top;">
            <div style="text-align: justify;">Audit-Related Fees &#8211; Employee Benefit Plans</div>
          </td>
          <td style="width: 3.35%; vertical-align: top;">&#160;</td>
          <td style="width: 3.99%; vertical-align: bottom; text-align: right;">
            <div style="font-family: 'Times New Roman',Times,serif; font-weight: bold;">$</div>
          </td>
          <td style="width: 14.13%; vertical-align: bottom; text-align: center;">
            <div style="font-family: 'Times New Roman',Times,serif; font-weight: bold;">&#160; 51,139</div>
          </td>
          <td style="width: 8.62%; vertical-align: top;">&#160;</td>
          <td style="width: 3.99%; vertical-align: bottom; text-align: right;">
            <div style="font-family: 'Times New Roman',Times,serif;">$</div>
          </td>
          <td style="width: 13.43%; vertical-align: bottom; text-align: center;">
            <div style="font-family: 'Times New Roman',Times,serif;">&#160; 51,000</div>
          </td>
        </tr>
        <tr>
          <td style="width: 52.49%; vertical-align: top;">
            <div style="text-align: justify;">Tax Fees &#8211; Federal and State Return preparation</div>
          </td>
          <td style="width: 3.35%; vertical-align: top;">&#160;</td>
          <td style="width: 3.99%; vertical-align: bottom; text-align: right;">
            <div style="font-family: 'Times New Roman',Times,serif; font-weight: bold;">$</div>
          </td>
          <td style="width: 14.13%; vertical-align: bottom; text-align: center;">
            <div style="font-family: 'Times New Roman',Times,serif; font-weight: bold;">144,470</div>
          </td>
          <td style="width: 8.62%; vertical-align: top;">&#160;</td>
          <td style="width: 3.99%; vertical-align: bottom; text-align: right;">
            <div style="font-family: 'Times New Roman',Times,serif;">$</div>
          </td>
          <td style="width: 13.43%; vertical-align: bottom; text-align: center;">
            <div style="font-family: 'Times New Roman',Times,serif;">&#160; 77,857</div>
          </td>
        </tr>
        <tr>
          <td style="width: 52.49%; vertical-align: top;">
            <div style="text-align: justify;">All Other Fees &#8211; Non-audit services</div>
          </td>
          <td style="width: 3.35%; vertical-align: top;">&#160;</td>
          <td style="width: 3.99%; vertical-align: bottom; text-align: right;">
            <div style="font-family: 'Times New Roman',Times,serif; font-weight: bold;">$</div>
          </td>
          <td style="width: 14.13%; vertical-align: bottom; text-align: center;">
            <div style="font-family: 'Times New Roman',Times,serif; font-weight: bold;">&#160; 53,833</div>
          </td>
          <td style="width: 8.62%; vertical-align: top;">&#160;</td>
          <td style="width: 3.99%; vertical-align: bottom; text-align: right;">
            <div style="font-family: 'Times New Roman',Times,serif;">$</div>
          </td>
          <td style="width: 13.43%; vertical-align: bottom; text-align: center;">
            <div style="font-family: 'Times New Roman',Times,serif;">&#160; &#160; 6,000</div>
          </td>
        </tr>

    </table>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 21.6pt; margin-top: 12pt;"><font style="font-weight: bold; font-style: italic;">Audit Fees: </font>Audit fees paid to<font style="font-weight: bold; font-style: italic;">&#160;</font>Fiondella, Milone &amp;
      LaSaracina LLP include fees associated with the annual integrated audit and the reviews of the Company&#8217;s quarterly reports on Form 10-Q for the quarters ended March 30, 2019, June 29, 2019 and September 28, 2019. Audit Fees also include the audit of
      Big 3 Precision Mold Services, Inc. and Big 3 Precision Products, Inc. (the &#8220;Big 3 Precision Acquisition&#8221;).</div>
    <div style="text-align: justify; text-indent: 21.6pt; margin-top: 12pt;"><font style="font-weight: bold; font-style: italic;">Audit-Related Fees: </font>Audit-related fees paid to<font style="font-weight: bold; font-style: italic;">&#160;</font>Fiondella,
      Milone &amp; LaSaracina LLP for 2019 primarily include audits of the employee benefit plans of the Company.</div>
    <div style="text-align: justify; text-indent: 21.6pt; margin-top: 12pt;"><font style="font-weight: bold; font-style: italic;">Tax Fees: </font>Tax fees paid to<font style="font-weight: bold; font-style: italic;">&#160;</font>Fiondella, Milone &amp;
      LaSaracina LLP for 2019 were for preparation of the 2018 federal and state income tax returns.</div>
    <div style="text-align: justify; text-indent: 21.6pt; margin-top: 12pt;"><font style="font-weight: bold; font-style: italic;">All Other Fees: </font>All Other Fees paid to Fiondella, Milone &amp; LaSaracina LLP for 2019 were for non-audit services.</div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 24pt;"><font style="font-weight: bold;">The Board recommends a vote FOR the ratification of the appointment of Fiondella, Milone &amp; LaSaracina</font>&#160;<font style="font-weight: bold;">LLP as the Company&#8217;s
        independent registered public accounting firm for the 2020 fiscal year. </font>Proxies will be voted FOR the proposal unless otherwise specified.</div>
    <div><br>
    </div>
    <div style="clear: both; margin-top: 10pt; margin-bottom: 10pt;" id="DSPFPageBreakArea">
      <div style="text-align: center;" id="DSPFPageNumberArea"><font style="font-size: 8pt; font-weight: normal; font-style: normal;" id="DSPFPageNumber">12</font></div>
      <div style="page-break-after:always;" id="DSPFPageBreak">
        <hr noshade="noshade" style="margin: 4px 0px; width: 100%; border-width: 0; height: 2px; color: #000000; background-color: #000000; clear: both;"></div>
    </div>
    <div style="text-align: center; font-weight: bold;">AUDIT COMMITTEE FINANCIAL EXPERT</div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 36pt;">The Board has determined that all audit committee members are financially literate and are independent under the current listing standards of NASDAQ. The Board has also determined that Fredrick D.
      DiSanto, John W. Everets, Michael A. McManus, Jr. and Peggy B. Scott qualify as &#8220;audit committee financial experts&#8221; as defined by SEC rules adopted pursuant to the Sarbanes-Oxley Act of 2002.</div>
    <div><br>
    </div>
    <div><br>
    </div>
    <div style="text-align: center; font-weight: bold;">REPORT OF THE AUDIT COMMITTEE</div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 22.5pt;">The Audit Committee oversees the Company&#8217;s financial reporting process on behalf of the Board. The Board adopted a revised written charter for the Audit Committee on February 4, 2004.</div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 22.5pt;">Management has the primary responsibility for the financial statements and the reporting process, including the system of internal control. The independent registered public accounting firm is
      responsible for expressing an opinion on the conformity of those statements with generally accepted accounting principles in the United States. Within this framework, the Audit Committee has reviewed and discussed the audited financial statements
      included in the Annual Report on Form 10-K with the independent registered public accounting firm and management. In connection therewith, the Audit Committee reviewed with the independent registered public accounting firm their judgments as to the
      quality and the acceptability of the Company&#8217;s accounting principles; the reasonableness of significant judgments; the clarity of disclosures in the financial statements; and other related matters as required to be discussed under generally accepted
      auditing standards in the United States.</div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 22.5pt;">In addition, the Audit Committee has discussed with the independent registered public accounting firm the independence of such firm from management and from the Company, including the matters in
      the written disclosures required by the Public Company Accounting Oversight Board, including Auditing Standard No. 1301 (Communications with Audit Committees) and the Independence Standards Board, and has considered the compatibility of non-audit
      services with such firm&#8217;s independence.</div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 22.5pt;">The Audit Committee also discussed with the Company&#8217;s independent registered public accounting firm the overall scope and plan for their audit, their evaluation of the Company&#8217;s internal control
      and the overall quality of the Company&#8217;s financial reporting. The Audit Committee held four meetings with the Company&#8217;s independent registered public accounting firm, both with and without management present, during fiscal year 2019.</div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 22.5pt;">In reliance on the reviews and discussions referred to above, the Audit Committee recommended to the Board that the audited consolidated financial statements be included in the Company&#8217;s Annual
      Report on Form 10-K for the year ended December 28, 2019 for filing with the SEC. The Audit Committee has recommended, and the Board has approved, subject to shareholder ratification, the selection of Fiondella, Milone &amp; LaSaracina LLP as the
      Company&#8217;s independent registered public accounting firm for the 2020 fiscal year.</div>
    <div><br>
    </div>
    <div><br>
    </div>
    <div style="text-indent: 36pt;">Audit Committee:</div>
    <div><br>
    </div>
    <div style="text-indent: 36pt;">Fredrick D. DiSanto, Chairman</div>
    <div style="text-indent: 36pt;">John W. Everets</div>
    <div style="text-indent: 36pt;">Michael A. McManus, Jr.</div>
    <div style="text-indent: 36pt;">Peggy B. Scott</div>
    <div><br>
    </div>
    <div style="clear: both; margin-top: 10pt; margin-bottom: 10pt;" id="DSPFPageBreakArea">
      <div style="text-align: center;" id="DSPFPageNumberArea"><font style="font-size: 8pt; font-weight: normal; font-style: normal;" id="DSPFPageNumber">13</font></div>
      <div style="page-break-after:always;" id="DSPFPageBreak">
        <hr noshade="noshade" style="margin: 4px 0px; width: 100%; border-width: 0; height: 2px; color: #000000; background-color: #000000; clear: both;"></div>
    </div>
    <div style="text-align: center; font-weight: bold;">SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT</div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 23.75pt;">The following table sets forth information, as of March 2, 2020, (unless a different date is specified in the notes to the table), with respect to (i) each person known by the Board to be the
      beneficial owner of more than 5% of the Company&#8217;s outstanding Common Shares, (ii) each current director of the Company and nominee to be a director of the Company, (iii) each of the named executive officers (as hereinafter defined) and (iv) all
      directors, nominees and executive officers of the Company as a group.&#160; Except as set forth below, the Company knows of no person or group that beneficially owns 5% or more of the outstanding Common Shares. Unless set forth in the following table, the
      address of each shareholder is c/o The Eastern Company, 112 Bridge Street, Naugatuck, Connecticut 06770-0460.</div>
    <div><br>
    </div>
    <table cellspacing="0" cellpadding="0" style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; width: 100%; text-align: left; color: #000000;" id="zbc78626c8ce848c49069ef2cceb3076f">

        <tr>
          <td style="width: 21.13%; vertical-align: bottom; border-bottom: #000000 2px solid;">
            <div style="font-weight: bold;">Title of Class</div>
          </td>
          <td style="width: 48.42%; vertical-align: bottom; border-bottom: #000000 2px solid;">
            <div style="font-weight: bold;">Name and Address of Beneficial Owner</div>
          </td>
          <td style="width: 17.95%; vertical-align: bottom; border-bottom: #000000 2px solid;">
            <div style="text-align: center; font-weight: bold;">Amount and Nature<br>
              of Beneficial<br>
              Ownership (a)</div>
          </td>
          <td style="width: 12.5%; vertical-align: bottom; border-bottom: #000000 2px solid;">
            <div style="text-align: center; font-weight: bold;">Percent of<br>
              Class (b)</div>
          </td>
        </tr>
        <tr>
          <td style="width: 21.13%; vertical-align: top;">
            <div>Common Stock</div>
          </td>
          <td style="width: 48.42%; vertical-align: top;">
            <div>GAMCO Investors, Inc. (c)</div>
            <div>One Corporate Center</div>
            <div>Rye, NY&#160; 10580</div>
            <div>&#160;</div>
          </td>
          <td style="width: 17.95%; vertical-align: top;">
            <div style="text-align: center;">1,166,574</div>
          </td>
          <td style="width: 12.5%; vertical-align: top;">
            <div style="text-align: center;">&#160;18.69%</div>
          </td>
        </tr>
        <tr>
          <td style="width: 21.13%; vertical-align: top;">
            <div>Common Stock</div>
          </td>
          <td style="width: 48.42%; vertical-align: top;">
            <div>
              <div>Barington Companies Equity Partners, L.P. (d)</div>
            </div>
            <div>888 Seventh Avenue, 6<sup style="vertical-align: text-top; line-height: 1; font-size: smaller;">th</sup> Floor</div>
            <div>New York, NY&#160; 10019</div>
            <div>&#160;</div>
          </td>
          <td style="width: 17.95%; vertical-align: top;">
            <div style="text-align: center;">575,703</div>
          </td>
          <td style="width: 12.5%; vertical-align: top;">
            <div style="text-align: center;">&#160;&#160;9.22%</div>
          </td>
        </tr>
        <tr>
          <td style="width: 21.13%; vertical-align: top;">
            <div>Common Stock</div>
          </td>
          <td style="width: 48.42%; vertical-align: top;">
            <div>Dimensional Fund Advisors LP (e)</div>
            <div style="text-align: justify;">Building One</div>
            <div style="text-align: justify;">6300 Bee Cave Road</div>
            <div style="text-align: justify;">Austin, TX&#160; 78746</div>
            <div>&#160;</div>
          </td>
          <td style="width: 17.95%; vertical-align: top;">
            <div style="text-align: center;">409,732</div>
          </td>
          <td style="width: 12.5%; vertical-align: top;">
            <div style="text-align: center;">&#160;&#160;6.57%</div>
          </td>
        </tr>
        <tr>
          <td style="width: 21.13%; vertical-align: top;">
            <div>Common Stock</div>
          </td>
          <td style="width: 48.42%; vertical-align: top;">
            <div>Minerva Advisors LLC (f)<br>
              50 Monument Road, Suite 201</div>
            <div style="text-align: justify;">Bala Cynwyd, PA&#160; 19004</div>
            <div>&#160;</div>
          </td>
          <td style="width: 17.95%; vertical-align: top;">
            <div style="text-align: center;">339,050</div>
          </td>
          <td style="width: 12.5%; vertical-align: top;">
            <div style="text-align: center;">&#160;&#160;5.43%</div>
          </td>
        </tr>
        <tr>
          <td style="width: 21.13%; vertical-align: top;">
            <div>Common Stock</div>
          </td>
          <td style="width: 48.42%; vertical-align: top;">
            <div>Fredrick D. DiSanto (g)</div>
            <div>&#160;</div>
          </td>
          <td style="width: 17.95%; vertical-align: top;">
            <div style="text-align: center;">&#160;56,319</div>
          </td>
          <td style="width: 12.5%; vertical-align: top;">
            <div style="text-align: center;">&#160;&#160;0.90%</div>
          </td>
        </tr>
        <tr>
          <td style="width: 21.13%; vertical-align: top;">
            <div style="text-align: justify;">Common Stock</div>
          </td>
          <td style="width: 48.42%; vertical-align: top;">
            <div style="text-align: justify;">John W. Everets</div>
            <div>&#160;</div>
          </td>
          <td style="width: 17.95%; vertical-align: top;">
            <div style="text-align: center;">118,131</div>
          </td>
          <td style="width: 12.5%; vertical-align: top;">
            <div style="text-align: center;">&#160;&#160;1.89%</div>
          </td>
        </tr>
        <tr>
          <td style="width: 21.13%; vertical-align: top;">
            <div style="text-align: justify;">Common Stock</div>
          </td>
          <td style="width: 48.42%; vertical-align: top;">
            <div style="text-align: justify;">Charles W. Henry</div>
            <div>&#160;</div>
          </td>
          <td style="width: 17.95%; vertical-align: top;">
            <div style="text-align: center;">&#160;&#160;&#160;64,067</div>
          </td>
          <td style="width: 12.5%; vertical-align: top;">
            <div style="text-align: center;">&#160;&#160;1.03%</div>
          </td>
        </tr>
        <tr>
          <td style="width: 21.13%; vertical-align: top;">
            <div style="text-align: justify;">Common Stock</div>
          </td>
          <td style="width: 48.42%; vertical-align: top;">
            <div style="text-align: justify;">James A. Mitarotonda (h)</div>
            <div>&#160;</div>
          </td>
          <td style="width: 17.95%; vertical-align: top;">
            <div style="text-align: center;">585,066</div>
          </td>
          <td style="width: 12.5%; vertical-align: top;">
            <div style="text-align: center;">&#160;&#160;9.37%</div>
          </td>
        </tr>
        <tr>
          <td style="width: 21.13%; vertical-align: top;">
            <div style="text-align: justify;">Common Stock</div>
          </td>
          <td style="width: 48.42%; vertical-align: top;">
            <div style="text-align: justify;">Michael A. McManus, Jr.</div>
            <div>&#160;</div>
          </td>
          <td style="width: 17.95%; vertical-align: top;">
            <div style="text-align: center;">&#160; 12,239</div>
          </td>
          <td style="width: 12.5%; vertical-align: top;">
            <div style="text-align: center;">&#160;&#160;0.20%</div>
          </td>
        </tr>
        <tr>
          <td style="width: 21.13%; vertical-align: top;">
            <div style="text-align: justify;">Common Stock</div>
          </td>
          <td style="width: 48.42%; vertical-align: top;">
            <div style="text-align: justify;">Peggy B. Scott (i)</div>
            <div>&#160;</div>
          </td>
          <td style="width: 17.95%; vertical-align: top;">
            <div style="text-align: center;">&#160;&#160;&#160; 2,998</div>
          </td>
          <td style="width: 12.5%; vertical-align: top;">
            <div style="text-align: center;">&#160;&#160;0.05%</div>
          </td>
        </tr>
        <tr>
          <td style="width: 21.13%; vertical-align: top;">
            <div style="text-align: justify;">Common Stock</div>
          </td>
          <td style="width: 48.42%; vertical-align: top;">
            <div style="text-align: justify;">John L. Sullivan III (j)</div>
            <div>&#160;</div>
          </td>
          <td style="width: 17.95%; vertical-align: top;">
            <div style="text-align: center;">&#160;&#160;&#160;31,837</div>
          </td>
          <td style="width: 12.5%; vertical-align: top;">
            <div style="text-align: center;">&#160;&#160;0.51%</div>
          </td>
        </tr>
        <tr>
          <td style="width: 21.13%; vertical-align: top;">
            <div style="text-align: justify;">Common Stock</div>
          </td>
          <td style="width: 48.42%; vertical-align: top;">
            <div style="text-align: justify;">August M. Vlak (k)</div>
            <div>&#160;</div>
          </td>
          <td style="width: 17.95%; vertical-align: top;">
            <div style="text-align: center;">&#160;&#160;&#160;21,407</div>
          </td>
          <td style="width: 12.5%; vertical-align: top;">
            <div style="text-align: center;">&#160;&#160;0.34%</div>
          </td>
        </tr>
        <tr>
          <td style="width: 21.13%; vertical-align: top;">
            <div style="text-align: justify;">Common Stock</div>
          </td>
          <td style="width: 48.42%; vertical-align: top;">
            <div style="text-align: justify;">All directors, nominees and executive</div>
            <div style="text-align: justify;">officers as a group (8 persons)(l)</div>
          </td>
          <td style="width: 17.95%; vertical-align: top;">
            <div style="text-align: center;">892,064</div>
            <div>&#160;</div>
          </td>
          <td style="width: 12.5%; vertical-align: top;">
            <div style="text-align: center;">&#160;14.29%</div>
          </td>
        </tr>

    </table>
    <div><br>
    </div>
    <div style="text-align: justify;">
      <div>
        <table cellspacing="0" cellpadding="0" style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; width: 100%; text-align: left; color: #000000;" class="DSPFListTable" id="z71dee91ce4f242ce94e4204f4d50383b">

            <tr>
              <td style="width: 18pt;"><br>
              </td>
              <td style="width: 18pt; vertical-align: top; align: right;">(a)</td>
              <td style="width: auto; vertical-align: top; text-align: justify;">
                <div>The SEC has defined &#8220;beneficial owner&#8221; of a security to include any person who has or shares voting power or investment power with respect to any such security or who has the right to acquire beneficial ownership of any such security
                  within 60 days. Unless otherwise indicated, the amounts owned reflect direct beneficial ownership and the person indicated has sole voting and sole investment power&#160;with respect to the Common Shares indicated as beneficially owned. As of
                  March 2, 2020, there were<font style="font-weight: bold;">&#160;</font>6,240,705<font style="font-weight: bold;">&#160;</font>Common Shares outstanding.</div>
              </td>
            </tr>

        </table>
      </div>
    </div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 0pt; margin-left: 36pt;">Amounts shown include the number of Common Shares (if any) subject to outstanding options or stock appreciation rights granted under the Company&#8217;s 2010 Executive Stock Incentive
      Plan (the &#8220;2010 Plan&#8221;) that are exercisable within 60 days after March 2, 2020.</div>
    <div style="clear: both; margin-top: 10pt; margin-bottom: 10pt;" id="DSPFPageBreakArea">
      <div style="text-align: center;" id="DSPFPageNumberArea"><font style="font-size: 8pt; font-weight: normal; font-style: normal;" id="DSPFPageNumber">14</font></div>
      <div style="page-break-after:always;" id="DSPFPageBreak">
        <hr noshade="noshade" style="margin: 4px 0px; width: 100%; border-width: 0; height: 2px; color: #000000; background-color: #000000; clear: both;"></div>
    </div>
    <div><br>
    </div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 0pt; margin-left: 36pt;">Reported shareholdings include, in certain cases, Common Shares owned by or in trust for a director or nominee, and in which all beneficial interest has been disclaimed by the
      director or the nominee.</div>
    <div><br>
    </div>
    <div style="text-align: justify;">
      <div>
        <table cellspacing="0" cellpadding="0" style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; width: 100%; text-align: left; color: #000000;" class="DSPFListTable" id="z83a289ef8e4f41f3b1282a4f8790f15e">

            <tr>
              <td style="width: 18pt;"><br>
              </td>
              <td style="width: 18pt; vertical-align: top; align: right;">(b)</td>
              <td style="width: auto; vertical-align: top; text-align: justify;">
                <div>The percentages shown for each of the directors and executive officers are calculated on the basis that outstanding Common Shares include Common Shares (if any) subject to outstanding options or stock appreciation rights under the
                  Company&#8217;s 2010 Plan that are exercisable by such director or officer within 60 days after March 2, 2020.</div>
              </td>
            </tr>

        </table>
      </div>
    </div>
    <div><br>
    </div>
    <div style="text-align: justify;">
      <div>
        <table cellspacing="0" cellpadding="0" style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; width: 100%; text-align: left; color: #000000;" class="DSPFListTable" id="z237b4f8091c642ab86982c6b255607af">

            <tr>
              <td style="width: 18pt;"><br>
              </td>
              <td style="width: 18pt; vertical-align: top; align: right;">(c)</td>
              <td style="width: auto; vertical-align: top; text-align: justify;">
                <div>Based on information set forth in Amendment No. 9 to Schedule 13D filed with the SEC on March 22, 2019 by Gabelli Funds, LLC, GAMCO Asset Management Inc., Teton Advisors, Inc., GGCP, Inc., Mario J. Gabelli, GAMCO Investors, Inc.,
                  Associated Capital Group, Inc.&#160; Gabelli Funds, LLC is an investment adviser registered under the Investment Advisers Act of 1940, as amended (the &#8220;Advisers Act&#8221;), which provides advisory services for a variety of investment funds,
                  investment companies, investment trusts and other investment entities.&#160; GAMCO Asset Management Inc., a wholly-owned subsidiary of GAMCO Investors, Inc., is an investment adviser registered under the Advisers Act that is an investment
                  manager providing discretionary managed account services for employee benefit plans, private investors, endowments, foundations and others. Teton Advisors, Inc. is an investment adviser registered under the Advisers Act that provides
                  discretionary advisory services to The TETON Westwood Mighty Mites<sup style="vertical-align: text-top; line-height: 1; font-size: smaller;">sm</sup> Fund, The TETON Westwood Income Fund, The TETON Westwood SmallCap Equity Fund, TETON Westwood Intermediate Bond Fund and The TETON Westwood Mid-Cap Equity
                  Fund.&#160; Mario J. Gabelli is deemed to have beneficial ownership of the securities owned beneficially by each of the foregoing persons. GAMCO Investors, Inc. and GGCP, Inc. are deemed to have beneficial ownership of the securities owned
                  beneficially by each of the foregoing persons other than Mario J. Gabelli.</div>
              </td>
            </tr>

        </table>
      </div>
    </div>
    <div><br>
    </div>
    <div style="text-align: justify;">
      <div>
        <table cellspacing="0" cellpadding="0" style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; width: 100%; text-align: left; color: #000000;" class="DSPFListTable" id="z0816772d33644c48aaf396b7fce460f3">

            <tr>
              <td style="width: 18.7pt;"><br>
              </td>
              <td style="width: 18.7pt; vertical-align: top; align: right;">(d)</td>
              <td style="width: auto; vertical-align: top; text-align: justify;">
                <div>
                  <div style="text-align: left;">
                    <div style="text-align: justify; font-family: 'Times New Roman',Times,serif;">
                      <div style="text-align: left; font-family: 'Times New Roman', Times, serif;">Based on information set forth in the Form 4 filed with the SEC on December 23, 2019 by Mr. Mitarotonda, Barington Companies Equity Partners, L.P. (&#8220;BCEP&#8221;)
                        beneficially owns 575,703 Common Shares. Mr. Mitarotonda beneficially owns 9,363 Common Shares granted to him under The Eastern Company&#8217;s Directors Fee Program. He may also be deemed to beneficially own the 575,703 Common Shares
                        beneficially owned by BCEP.&#160; Mr. Mitarotonda is the sole stockholder and director of LNA Capital Corp (&#8220;LNA&#8221;). LNA is the general partner of Barington Capital Group, L.P., which is the majority member of Barington Companies
                        Investors, LLC (&#8220;BCI&#8221;). BCI is the general partner of BCEP. Mr. Mitarotonda disclaims beneficial ownership of the Common Shares beneficially owned by BCEP except to the extent of his pecuniary interest therein.</div>
                    </div>
                  </div>
                </div>
              </td>
            </tr>

        </table>
      </div>
    </div>
    <div><br>
    </div>
    <div style="text-align: justify;">
      <div>
        <table cellspacing="0" cellpadding="0" style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; width: 100%; text-align: left; color: #000000;" class="DSPFListTable" id="z18a8d902798e43f5be01ab8964fa07c7">

            <tr>
              <td style="width: 18.7pt;"><br>
              </td>
              <td style="width: 18.7pt; vertical-align: top; align: right;">(e)</td>
              <td style="width: auto; vertical-align: top; text-align: justify;">
                <div>Based on information set forth in Amendment No. 7 to Schedule 13G filed with the SEC on February 12, 2020 by Dimensional Fund Advisors LP (&#8220;Dimensional&#8221;), an investment adviser registered under Section 203 of the Advisors Act.&#160;
                  Dimensional furnishes investment advice to four investment companies registered under the Investment Company Act of 1940, as amended, and serves as investment manager or sub-adviser to certain other commingled funds, group trusts and
                  separate accounts (such investment companies, trusts and accounts, collectively referred to as the &#8220;Dimensional Funds&#8221;).&#160; In certain cases, subsidiaries of Dimensional may act as an adviser or sub-adviser to certain Dimensional Funds. In
                  its role as investment advisor, sub-adviser and/or manager, Dimensional or its subsidiaries (collectively, &#8220;Dimensional&#8221;) may possess voting and/or investment power over the Common Shares that are owned by the Dimensional Funds, and may
                  be deemed to be the beneficial owner of the Common Shares held by the Dimensional Funds.&#160; However, all Common Shares are owned by the Dimensional Funds, and Dimensional disclaims beneficial ownership of such Common Shares.</div>
              </td>
            </tr>

        </table>
      </div>
    </div>
    <div><br>
    </div>
    <div style="text-align: justify;">
      <div>
        <table cellspacing="0" cellpadding="0" style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; width: 100%; text-align: left; color: #000000;" class="DSPFListTable" id="zefff2ee4275349adac36f5e6c91b1c61">

            <tr>
              <td style="width: 17.3pt;"><br>
              </td>
              <td style="width: 18.7pt; vertical-align: top; align: right;">(f)</td>
              <td style="width: auto; vertical-align: top; text-align: justify;">
                <div>Based on information set forth in Amendment No. 4 to Schedule 13G filed with the SEC on February 12, 2020 by Minerva Advisors LLC, Minerva Group, LP, Minerva GP, LP, Minerva GP, Inc., and David P. Cohen.&#160; Each of Minerva Advisors LLC,
                  Minerva Group, LP, Minerva GP, LP, Minerva GP, Inc., and David P. Cohen is deemed a beneficial owner of the 217,685 Common Shares held by Minerva Group, LP.&#160; David P. Cohen is the beneficial owner of the 2,250 Common Shares that he owns
                  individually and is also deemed a beneficial owner of the 336,800 Common Shares beneficially owned by Minerva Advisors LLC.</div>
              </td>
            </tr>

        </table>
      </div>
    </div>
    <div style="clear: both; margin-top: 10pt; margin-bottom: 10pt;" id="DSPFPageBreakArea">
      <div style="text-align: center;" id="DSPFPageNumberArea"><font style="font-size: 8pt; font-weight: normal; font-style: normal;" id="DSPFPageNumber">15</font></div>
      <div style="page-break-after:always;" id="DSPFPageBreak">
        <hr noshade="noshade" style="margin: 4px 0px; width: 100%; border-width: 0; height: 2px; color: #000000; background-color: #000000; clear: both;"></div>
    </div>
    <div><br>
    </div>
    <div><br>
    </div>
    <div style="text-align: justify;">
      <div>
        <table cellspacing="0" cellpadding="0" style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; width: 100%; text-align: left; color: #000000;" class="DSPFListTable" id="zcbcac0651b4c4f84b94e75fd95a1fda7">

            <tr>
              <td style="width: 17.3pt;"><br>
              </td>
              <td style="width: 18.7pt; vertical-align: top; align: right;">(g)</td>
              <td style="width: auto; vertical-align: top; text-align: justify;">
                <div>Mr. DiSanto&#8217;s shareholdings include direct ownership of 12,522 Common Shares and shared voting power and investment power over an additional 43,797 Common Shares over which he has indirect beneficial ownership.</div>
              </td>
            </tr>

        </table>
      </div>
    </div>
    <div><br>
    </div>
    <div style="text-align: justify;">
      <div>
        <table cellspacing="0" cellpadding="0" style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; width: 100%; text-align: left; color: #000000;" class="DSPFListTable" id="ze830bb3c07524a569de2192c3ccc9a6a">

            <tr>
              <td style="width: 17.3pt;"><br>
              </td>
              <td style="width: 18.7pt; vertical-align: top; align: right;">(h)</td>
              <td style="width: auto; vertical-align: top; text-align: justify;">
                <div>Mr. Mitarotonda beneficially owns 9,363 Common Shares granted to him under The Eastern Company&#8217;s Directors Fee Program. He may also be deemed to beneficially own 575,703 Common Shares beneficially owned by <a name="z_Hlk34147600"></a>BCEP

                  (see footnote (d) above). Mr. Mitarotonda disclaims beneficial ownership of the Common Shares beneficially owned by BCEP except to the extent of his pecuniary interest therein.</div>
              </td>
            </tr>

        </table>
      </div>
    </div>
    <div><br>
    </div>
    <div>
      <table cellspacing="0" cellpadding="0" style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; width: 100%; text-align: left; color: #000000;" class="DSPFListTable" id="zbb710ef643cb4f73a98caa98ab58fa91">

          <tr>
            <td style="width: 36pt; vertical-align: top; align: right;">
              <div style="margin-left: 18pt;">(i)</div>
            </td>
            <td style="width: auto; vertical-align: top;">
              <div style="text-align: justify;">Mrs. Scott was elected as a director of the Company at the last Annual Meeting, which was held on May 1, 2019.</div>
            </td>
          </tr>

      </table>
    </div>
    <div><br>
    </div>
    <div style="text-align: justify;">
      <div>
        <table cellspacing="0" cellpadding="0" style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; width: 100%; text-align: left; color: #000000;" class="DSPFListTable" id="z6ed73db9caad41739e7f269745aa7c5a">

            <tr>
              <td style="width: 18pt;"><br>
              </td>
              <td style="width: 18pt; vertical-align: top; align: right;">(j)</td>
              <td style="width: auto; vertical-align: top; text-align: justify;">
                <div>Mr. Sullivan&#8217;s security ownership includes 2,087 Common Shares underlying stock appreciation rights granted on March 2, 2017 that became exercisable on February 1, 2018, February 1, 2019 and February 1, 2020.</div>
              </td>
            </tr>

        </table>
      </div>
    </div>
    <div><br>
    </div>
    <div style="text-align: justify;">
      <div>
        <table cellspacing="0" cellpadding="0" style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; width: 100%; text-align: left; color: #000000;" class="DSPFListTable" id="z573fc5ff3f604863a298b863434f9645">

            <tr>
              <td style="width: 18pt;"><br>
              </td>
              <td style="width: 18pt; vertical-align: top; align: right;">(k)</td>
              <td style="width: auto; vertical-align: top; text-align: justify;">
                <div>Mr. Vlak&#8217;s security ownership includes 4,173 Common Shares underlying stock appreciation rights granted on March 2, 2017 that became exercisable on February 1, 2018 February 1, 2019 and February 1, 2020.</div>
              </td>
            </tr>

        </table>
      </div>
    </div>
    <div><br>
    </div>
    <div style="text-align: justify;">
      <div>
        <table cellspacing="0" cellpadding="0" style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; width: 100%; text-align: left; color: #000000;" class="DSPFListTable" id="z689d2cfd742140998140bb333c648c97">

            <tr>
              <td style="width: 18pt;"><br>
              </td>
              <td style="width: 18pt; vertical-align: top; align: right;">(l)</td>
              <td style="width: auto; vertical-align: top; text-align: justify;">
                <div>Unless otherwise indicated in the notes above, directors, nominees and named executive officers have sole voting and investment power as to 892,064 Common Shares (14.29% of the outstanding stock).</div>
              </td>
            </tr>

        </table>
      </div>
    </div>
    <div><br>
    </div>
    <div><br>
    </div>
    <div><br>
    </div>
    <div style="text-align: center; font-weight: bold;">SECTION 16(a) BENEFICIAL OWNERSHIP REPORTING COMPLIANCE</div>
    <div><br>
    </div>
    <div style="text-align: justify; margin-top: 6pt;">Section 16(a) of the Exchange Act requires the Company&#8217;s directors and officers, and persons who beneficially own more than 10% of a registered class of the Company&#8217;s equity securities, to file reports
      of ownership and changes in ownership with the SEC. Based on a review of the copies of such reports and written representations from certain reporting persons that no such reports were required for those persons, the Company believes that all reports
      for the Company&#8217;s directors, officers and 10% beneficial owners that were required to be filed under Section 16 during the fiscal year ended December 28, 2019 were timely filed.</div>
    <div style="clear: both; margin-top: 10pt; margin-bottom: 10pt;" id="DSPFPageBreakArea">
      <div style="text-align: center;" id="DSPFPageNumberArea"><font style="font-size: 8pt; font-weight: normal; font-style: normal;" id="DSPFPageNumber">16</font></div>
      <div style="page-break-after:always;" id="DSPFPageBreak">
        <hr noshade="noshade" style="margin: 4px 0px; width: 100%; border-width: 0; height: 2px; color: #000000; background-color: #000000; clear: both;"></div>
    </div>
    <div><br>
    </div>
    <div style="text-align: center; font-weight: bold;">THE BOARD OF DIRECTORS AND COMMITTEES</div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 24pt;">The Board is committed to sound corporate governance practices and believes that our current corporate governance practices enhance the Company&#8217;s ability to achieve its goals and enable the Board to
      govern the Company with the highest standards of integrity. In 2018, the Board adopted new Board Governance Guidelines that codify its practices. The Board Governance Guidelines, the Company&#8217;s Code of Business Conduct and Ethics, as adopted by the
      Board on February 4, 2004 and the charters of our Audit, Compensation and Nominating and Corporate Governance Committees are available for review at the Company website at <u>www.easterncompany.com</u>.</div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 24pt;">The current leadership structure of the Board allows it to perform its duties effectively and efficiently considering the relatively small size of the Company. In 2019, the Board held seven meetings.
      All seven current directors attended 100% of the meetings held.</div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 22.5pt;">The Board conducts annual self-evaluations to assess the effectiveness, processes, skills, functions and other matters relevant to the Board as a whole or to each particular committee. Results of
      the evaluations are summarized and discussed at Board and committee meetings for the purpose of improving the effectiveness of the Board and committees.</div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 24pt;">Because of the Company&#8217;s diversified engineering, manufacturing and marketing activities, risk oversight responsibilities are focused generally on the Board&#8217;s overall assessment of broad and general
      business and economic conditions in the market sectors in which the Company operates. With Board oversight, the executive management team&#8217;s planning and review and extensive Sarbanes-Oxley compliance testing of internal controls substantiates the
      credibility of the Company&#8217;s financial reporting and operating controls.</div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 24pt;">The Board is provided with detailed and timely financial and operating communications, including the nature of significant capital projects as well as other important business matters indicating
      business trends and economic projections that might affect the Company&#8217;s businesses.</div>
    <div><br>
    </div>
    <div style="text-align: justify; font-weight: bold;">Board&#8217;s Role in Company Strategy and Leadership</div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 22.5pt;">The Board has an active role in the Company&#8217;s overall strategies. Each year, the Board conducts a comprehensive, in-depth review of the Company&#8217;s long-term strategy and annual operating plan and
      actively monitors and reviews management&#8217;s progress in executing both throughout the year. In addition, throughout the year the Board conducts individual segment strategy reviews with segment leadership.</div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 22.5pt;">The Board recognizes that one of its most important duties is to endure continuity in the Company&#8217;s senior leadership by overseeing the development of executive talent and planning for the
      effective succession of the Company&#8217;s CEO and the executive leadership team. In order to ensure that the succession planning and leadership development process supports and enhances the Company&#8217;s strategic objectives, the Board regularly consults
      with the CEO on the Company&#8217;s organizational needs, its leadership pipeline and the succession plans for critical leadership positions.</div>
    <div><br>
    </div>
    <div style="text-align: justify; font-weight: bold;">The Role of the Board in Corporate Social Responsibility</div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 22.5pt;">Corporate social responsibility is deeply ingrained in our work, and has been for over a century. Our businesses are committed to solving customers&#8217; complex safety and security challenges. Every
      day, the products that our businesses design and manufacture protect people who use them from injury and safeguard property against damage or loss. We know that our first obligation is to the people who come to work at each of our businesses, and we
      are committed to our goal of zero reportable accidents. The Board has established an Environment, Health and Safety Committee which reviews the health and safety of our employees. Finally, our businesses seek to minimize their environmental impact
      and embrace sustainable material recycling practices in our operations.</div>
    <div><br>
    </div>
    <div style="text-align: justify; font-weight: bold;">Board Committees</div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 22.5pt;">The Company&#8217;s Board has five standing committees: the Executive Committee, Audit Committee, Compensation Committee, Nominating and Corporate Governance Committee and Environment, Health and Safety
      Committee. The Pension Investment Review Committee was dissolved on May 1, 2019. Each committee is composed of four independent directors except the Executive Committee, which has three members, and the Environment, Health and Safety Committee, which
      has three independent directors and the President and Chief Executive Officer.</div>
    <div style="clear: both; margin-top: 10pt; margin-bottom: 10pt;" id="DSPFPageBreakArea">
      <div style="text-align: center;" id="DSPFPageNumberArea"><font style="font-size: 8pt; font-weight: normal; font-style: normal;" id="DSPFPageNumber">17</font></div>
      <div style="page-break-after:always;" id="DSPFPageBreak">
        <hr noshade="noshade" style="margin: 4px 0px; width: 100%; border-width: 0; height: 2px; color: #000000; background-color: #000000; clear: both;"></div>
    </div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 22.5pt;">The President and Chief Executive Officer is not a member of the Executive Committee, Audit, Compensation, and Nominating and Corporate Governance Committees but is a member of the Environment,
      Health and Safety Committee.</div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 36pt; margin-left: 36pt;"><font style="font-weight: bold; font-style: italic;">Executive Committee</font><font style="font-style: italic;">. </font>The Executive Committee, acting with the full authority
      of the Board, approves minutes, monthly operating reports, capital expenditures, banking matters, and other issues requiring immediate attention when the Board is not in session. The members of the Executive Committee include Charles W. Henry,
      Michael A. McManus, Jr. and James A. Mitarotonda (Chairman). In 2019, the Executive Committee did not meet.</div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 36pt; margin-left: 36pt;"><font style="font-weight: bold; font-style: italic;">Audit Committee. </font>The Audit Committee advises the Board and provides oversight on matters relating to the Company&#8217;s
      financial reporting process, accounting functions and internal controls, and the qualifications, independence, appointment, retention, compensation and performance of the Company&#8217;s independent registered public accounting firm. The Audit Committee
      also provides oversight with respect to legal compliance, ethics programs, and cyber risk management. The members of the Audit Committee include Fredrick D. DiSanto (Chairman), John W. Everets, Michael A. McManus, Jr. and Peggy B. Scott. During 2019,
      the Audit Committee held four meetings.</div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 36pt; margin-left: 36pt;"><font style="font-weight: bold; font-style: italic;">Compensation Committee</font>. The Compensation Committee is responsible for establishing basic management compensation,
      incentive plan goals, and all related matters, as well as determining stock incentive grants to employees. The Board adopted the charter of the Compensation Committee on December 13, 2006. The members of the Compensation Committee include Charles W.
      Henry, Michael A. McManus, Jr. (Chairman), James A. Mitarotonda and Peggy B. Scott. During 2019, the Compensation Committee held five meetings.</div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 36pt; margin-left: 36pt;"><font style="font-weight: bold; font-style: italic;">Environment, Health and Safety Committee. </font>The Board established the Environment, Health and Safety Committee in 2019.
      The Environment, Health and Safety Committee&#8217;s responsibilities include reviewing environmental, health and safety policies; overseeing the management and implementation of systems necessary for compliance with the policies; monitoring the
      effectiveness of policies, systems and processes; monitoring trends; and, reviewing and monitoring the overall environmental, health and safety performance of the Company. The members of the Environment, Health and Safety Committee include Charles W.
      Henry, Michael A. McManus, Jr., Peggy B. Scott (Chairperson) and August M. Vlak. The Environment, Health and Safety Committee held one meeting in 2019.</div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 36pt; margin-left: 36pt;"><font style="font-weight: bold; font-style: italic;">Nominating and Corporate Governance Committee. </font>The Board adopted the charter of the Nominating and Corporate Governance
      Committee on May 21, 2015. As defined by the rules and regulations of NASDAQ, the independent members of the Board include all of the members of the Board other than the President and Chief Executive Officer. The independent directors select and
      recommend to the Board the nomination of individuals for election to the Board. The members of the Nominating and Corporate Governance Committee include Fredrick D. DiSanto, John W. Everets, Charles W. Henry and James A. Mitarotonda (Chairman).
      During 2019, the Nominating and Corporate Governance Committee held four meetings.</div>
    <div style="text-align: justify; text-indent: 36pt; margin-left: 36pt;"><br>
    </div>
    <div>
      <div style="text-align: justify; text-indent: 36pt;">In 2017, the Board established the Pension Investment Review Committee and adopted the Committee&#8217;s charter. The committee was responsible for reviewing the Company&#8217;s qualified retirement plans. The
        members of the Pension Investment Review Committee during 2019 included Fredrick D. DiSanto (Chairman), John W. Everets, Charles W. Henry and August M. Vlak. The Pension Investment Review Committee held two meetings in 2019. The Pension Investment
        Review Committee was dissolved in 2019 and certain responsibilities were transferred to the Audit Committee.</div>
    </div>
    <div style="text-align: justify; font-weight: bold;"> <br>
    </div>
    <div style="text-align: justify; font-weight: bold;"> <br>
    </div>
    <div style="text-align: justify; font-weight: bold;">Board Composition</div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 22.5pt;">Each member of the Board must have the ability to apply sound business judgment and must be able to exercise his or her duties of loyalty and care. Candidates for the position of director must
      exhibit proven leadership capabilities and high integrity, exercise high level responsibilities within their chosen careers, and have an ability to quickly grasp complex principles of business and finance. In general, candidates will be preferred to
      the extent they hold an established executive level position in business, finance, law, education, research, government or civic activities. When current members of the Board are considered for nomination for reelection, their prior contributions to
      the Board, their performance and their meeting attendance records are taken into account.</div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 24pt;">With the aim of developing a diverse, experienced and highly-qualified Board, the Nominating and Corporate Governance Committee is responsible for developing and recommending to the Board the desired
      qualifications, expertise and characteristics of members of the Board, including qualifications that the Nominating and Corporate Governance Committee believes are necessary for one or more of the members of the Board to possess.</div>
    <div id="DSPFPageBreakArea" style="clear: both; margin-top: 10pt; margin-bottom: 10pt;">
      <div style="text-align: center;" id="DSPFPageNumberArea"><font style="font-size: 8pt; font-weight: normal; font-style: normal;" id="DSPFPageNumber">18</font></div>
      <div id="DSPFPageBreak" style="page-break-after: always;">
        <hr noshade="noshade" style="border-width: 0px; clear: both; margin: 4px 0px; width: 100%; height: 2px; color: #000000; background-color: #000000;"></div>
    </div>
    <!--PROfilePageNumberReset%Num%19%%%-->
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 24pt;">Since selecting qualified directors requires consideration of many factors and will be influenced by the particular needs of the Board from time to time, the Board has not adopted a specific set of
      minimum qualifications, qualities or skills that are necessary for a nominee to possess, other than those that are necessary to meet U.S. legal, regulatory and NASDAQ listing requirements and the provisions of our Restated Certificate of
      Incorporation (as amended), our Bylaws(as amended), and the charters of the committees of the Board . When considering nominees, the Nominating and Corporate Governance Committee takes into consideration many factors, including a candidate&#8217;s
      independence, integrity, skills, financial and other expertise, experience, knowledge about our business or the industries in which we operate and ability to devote adequate time and effort to responsibilities of the Board. The brief biographical
      description of each director set forth in Item 1 of this Proxy Statement includes the individual experience, qualifications, attributes and skill of each director that led to the conclusion that each director should serve as a member of our Board.</div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 22.5pt;">The Board does not have a formal or informal policy with respect to diversity, but believes that the Board, taken as a whole, should embody a diverse set of skills, knowledge, experiences and
      backgrounds appropriate in light of the Company&#8217;s needs, and in this regard also subjectively takes into consideration the diversity (with respect to race, gender and national origin) of the Board when considering director nominees.</div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 24pt;">Pursuant to the Company&#8217;s Corporate Governance Guidelines, the Board examines whether the role of Chairman and Chief Executive Officer should be combined and may determine to separate or combine the
      offices of Chairman and CEO as it deems appropriate. Since January 1, 2016, the Company has separated the positions of Chairman of the Board and Chief Executive Officer. The Board believes that having a separate Chairman allows the Chief Executive
      Officer to focus on the day-to-day management of the Company, while enabling the Board to maintain an independent perspective on the activities of the Company and executive management.</div>
    <div><br>
    </div>
    <div style="text-align: justify; font-weight: bold;">Director Nomination Process</div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 22.5pt;">The Nominating and Corporate Governance Committee considers director nominees who are identified by the directors, by the shareholders, or through another source. The Nominating and Corporate
      Governance Committee may also use the services of a third party search firm to assist in the identification or evaluation of director candidates, as the committee deems necessary or appropriate.</div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 22.5pt;">Shareholders wishing to submit the names of qualified candidates for possible nomination to the Nominating and Corporate Governance Committee may make such a submission by sending the information
      described in the Company&#8217;s Bylaws to the Board (in care of the Secretary of the Company). This information generally must be submitted not more than 90 days nor less than 60 days prior to the first anniversary of the preceding year&#8217;s annual meeting
      of shareholders.</div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 22.5pt;">The Nominating and Corporate Governance Committee will make a preliminary assessment of each proposed nominee based upon his or her resume and biographical information, the individual&#8217;s willingness
      to serve as a director, and other background information. When considering nominees, the Nominating and Corporate Governance Committee takes into consideration many factors, including a candidate&#8217;s independence, integrity, skills, financial,
      diversity and other expertise, experience, knowledge about our business or the industries in which we operate and ability to devote adequate time and effort to responsibilities of the Board. This information is evaluated against the criteria
      described above and the specific needs of the Company at the time. Based upon a preliminary assessment of the candidate(s), those who appear best suited to meet the needs of the Company may be invited to participate in a series of interviews, which
      are used as a further means of evaluating potential candidates. On the basis of information learned during this process, the Nominating and Corporate Governance Committee will determine which nominee(s) they will recommend for election to the Board.
      The Nominating and Corporate Governance Committee use the same process for evaluating all nominees, regardless of the original source of the nomination.</div>
    <div><br>
    </div>
    <div style="text-align: justify; font-weight: bold;">Board Independence</div>
    <div><br>
    </div>
    <div style="text-align: justify;">The Board is currently composed of six members, five of whom are independent. Our Corporate Governance and Nominating Committee conducts an annual review and makes a recommendation to the full Board as to whether each
      of our directors meets the applicable independence standards of the NASDAQ Marketplace Rule 4200(a)(15). In accordance with the NASDAQ standards, our Board has adopted categorical standards for director independence, including heightened standards
      applicable to members of our Audit and Compensation Committees. A director will not be considered independent unless the Board determines that the director has no material relationship with the Company (directly, or a partner, stockholder or officer
      of an organization that has a material relationship with the Company). The Board has determined that each of the current directors, except August M. Vlak, has no material relationship with the Company other than as a director and is independent
      within the listing standards of the NASDAQ. In making its independence determinations, the Board has broadly considered all relevant facts and circumstances.</div>
  </div>
  <div><br>
    <br>
  </div>
  <div id="DSPFPageBreakArea" style="clear: both; margin-top: 10pt; margin-bottom: 10pt;">
    <div id="DSPFPageNumberArea" style="text-align: center;"><font id="DSPFPageNumber" style="font-size: 8pt; font-weight: normal; font-style: normal;">19</font></div>
    <div id="DSPFPageBreak" style="page-break-after: always;">
      <hr noshade="noshade" style="border-width: 0px; clear: both; margin: 4px 0px; width: 100%; height: 2px; color: #000000; background-color: #000000;"></div>
  </div>
  <div><br>
    <div><br>
    </div>
    <div><br>
    </div>
    <div style="text-align: justify; font-weight: bold;">Summary of Annual Director Compensation</div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 36pt;">During fiscal year 2019, the Company paid non-employee directors individually in Common Shares or cash as follows: the annual retainer for the chairman of the board is $65,000; for directors it is
      $35,000; the chairman of the Audit Committee received an additional $10,000; the chairman of the Compensation and Environment, Health and Safety Committees received an additional $7,500; the chairman of the Pension Investment Review Committee
      received an additional $5,000; and chairman of the Nominating and Governance Committee received an additional $2,000. In addition to the annual retainer fee, all non-employee directors were compensated for all meetings in addition to the Board&#8217;s six
      regularly scheduled meetings as follows: $1,500 for each in-person meeting and $500 for each telephonic meeting. For the fiscal year 2020, the annual retainer for the chairman of the board will be $125,000 and for directors it will be $70,000. There
      will be no change to the compensation given to the chairmen of committees and compensation for meetings over the six regularly scheduled meetings for fiscal year 2020.&#160;</div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 22.5pt;">Each director makes an annual election, within a reasonable time before their first quarterly payment, to receive their fees in the form of cash, Company Shares or a combination of cash and Company
      Shares. The election remains in force for one year. Messrs. DiSanto, Everets, Henry, McManus and Mitarotonda elected to receive their director compensation in Company Shares. The Company Shares are issued under the Directors Fee Program, which was
      approved by our shareholders in March 26, 1997 at the 1997 Annual Meeting of Shareholders and amended and restated, with shareholder approval, in 2004.</div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 22.5pt;">The Company does not maintain a minimum share ownership requirement for any director.</div>
    <div><br>
    </div>
    <div style="text-align: center; margin-left: 36pt; font-weight: bold;">DIRECTOR COMPENSATION IN FISCAL 2019</div>
    <div><br>
    </div>
    <table cellspacing="0" cellpadding="0" style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; width: 100%; text-align: left; color: #000000;" id="zb1e0f3c5dc494544b11a3b68a820253f">

        <tr>
          <td style="width: 20.83%; vertical-align: bottom;">
            <div style="font-size: 8pt; font-weight: bold;"><u>Name (1)</u></div>
          </td>
          <td style="width: 10.8%; vertical-align: bottom;">
            <div style="text-align: center; font-size: 8pt; font-weight: bold;">Fees Earned</div>
            <div style="text-align: center; font-size: 8pt; font-weight: bold;">or Paid in Cash</div>
            <div style="text-align: center; font-size: 8pt; font-weight: bold;"><u>($) (2)</u></div>
          </td>
          <td style="width: 9%; vertical-align: bottom;">
            <div style="text-align: center; font-size: 8pt; font-weight: bold;">Stock</div>
            <div style="text-align: center; font-size: 8pt; font-weight: bold;">Awards</div>
            <div style="text-align: center; font-size: 8pt; font-weight: bold;"><u>($)</u></div>
          </td>
          <td style="width: 8.22%; vertical-align: bottom;">
            <div style="text-align: center; font-size: 8pt; font-weight: bold;">Option</div>
            <div style="text-align: center; font-size: 8pt; font-weight: bold;">Awards</div>
            <div style="text-align: center; font-size: 8pt; font-weight: bold;"><u>($)</u></div>
          </td>
          <td style="width: 11.58%; vertical-align: bottom;">
            <div style="text-align: center; font-size: 8pt; font-weight: bold;">Non-equity</div>
            <div style="text-align: center; font-size: 8pt; font-weight: bold;">Incentive</div>
            <div style="text-align: center; font-size: 8pt; font-weight: bold;">Plan</div>
            <div style="text-align: center; font-size: 8pt; font-weight: bold;">Compensation</div>
            <div style="text-align: center; font-size: 8pt; font-weight: bold;"><u>($)</u></div>
          </td>
          <td style="width: 14.39%; vertical-align: bottom;">
            <div style="text-align: center; font-size: 8pt; font-weight: bold;">Change in pension value and nonqualified deferred compensation earnings</div>
            <div style="text-align: center; font-size: 8pt; font-weight: bold;"><u>($)</u></div>
          </td>
          <td style="width: 12.6%; vertical-align: bottom;">
            <div style="text-align: center; font-size: 8pt; font-weight: bold;">All</div>
            <div style="text-align: center; font-size: 8pt; font-weight: bold;">Other</div>
            <div style="text-align: center; font-size: 8pt; font-weight: bold;">Compensation</div>
            <div style="text-align: center; font-size: 8pt; font-weight: bold;"><u>($) (3)</u></div>
          </td>
          <td style="width: 12.6%; vertical-align: bottom;">
            <div style="text-align: center; font-size: 8pt; font-weight: bold;">Total</div>
            <div style="text-align: center; font-size: 8pt; font-weight: bold;"><u>($)</u></div>
          </td>
        </tr>
        <tr>
          <td style="width: 20.83%; vertical-align: top;">
            <div style="font-size: 8pt;">Fredrick D. DiSanto</div>
          </td>
          <td style="width: 10.8%; vertical-align: top;">
            <div style="text-align: center; font-size: 8pt;">$ 48,496</div>
          </td>
          <td style="width: 9%; vertical-align: top;">&#160;</td>
          <td style="width: 8.22%; vertical-align: top;">&#160;</td>
          <td style="width: 11.58%; vertical-align: top;">&#160;</td>
          <td style="width: 14.39%; vertical-align: top;">&#160;</td>
          <td style="width: 12.6%; vertical-align: top;">
            <div style="text-align: center; font-size: 8pt;">$&#160; &#160; 258</div>
          </td>
          <td style="width: 12.6%; vertical-align: top;">
            <div style="text-align: center; font-size: 8pt;">$48,754</div>
          </td>
        </tr>
        <tr>
          <td style="width: 20.83%; vertical-align: top;">
            <div style="font-size: 8pt;">John W. Everets</div>
          </td>
          <td style="width: 10.8%; vertical-align: top;">
            <div style="text-align: center; font-size: 8pt;">&#160;&#160;&#160;36,010</div>
          </td>
          <td style="width: 9%; vertical-align: top;">&#160;</td>
          <td style="width: 8.22%; vertical-align: top;">&#160;</td>
          <td style="width: 11.58%; vertical-align: top;">&#160;</td>
          <td style="width: 14.39%; vertical-align: top;">&#160;</td>
          <td style="width: 12.6%; vertical-align: top;">
            <div style="text-align: center; font-size: 8pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;-</div>
          </td>
          <td style="width: 12.6%; vertical-align: top;">
            <div style="text-align: center; font-size: 8pt;">&#160;&#160;36,010</div>
          </td>
        </tr>
        <tr>
          <td style="width: 20.83%; vertical-align: top;">
            <div style="font-size: 8pt;">Charles W. Henry</div>
          </td>
          <td style="width: 10.8%; vertical-align: top;">
            <div style="text-align: center; font-size: 8pt;">&#160;&#160;&#160;36,487</div>
          </td>
          <td style="width: 9%; vertical-align: top;">&#160;</td>
          <td style="width: 8.22%; vertical-align: top;">&#160;</td>
          <td style="width: 11.58%; vertical-align: top;">&#160;</td>
          <td style="width: 14.39%; vertical-align: top;">&#160;</td>
          <td style="width: 12.6%; vertical-align: top;">
            <div style="text-align: center; font-size: 8pt;">&#160;&#160;&#160;&#160;&#160;1,236</div>
          </td>
          <td style="width: 12.6%; vertical-align: top;">
            <div style="text-align: center; font-size: 8pt;">&#160;&#160;37,723</div>
          </td>
        </tr>
        <tr>
          <td style="width: 20.83%; vertical-align: top;">
            <div style="font-size: 8pt;">Michael A. McManus, Jr.</div>
          </td>
          <td style="width: 10.8%; vertical-align: top;">
            <div style="text-align: center; font-size: 8pt;">&#160;&#160;&#160;44,000</div>
          </td>
          <td style="width: 9%; vertical-align: top;">&#160;</td>
          <td style="width: 8.22%; vertical-align: top;">&#160;</td>
          <td style="width: 11.58%; vertical-align: top;">&#160;</td>
          <td style="width: 14.39%; vertical-align: top;">&#160;</td>
          <td style="width: 12.6%; vertical-align: top;">
            <div style="text-align: center; font-size: 8pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;-</div>
          </td>
          <td style="width: 12.6%; vertical-align: top;">
            <div style="text-align: center; font-size: 8pt;">&#160;&#160;44,000</div>
          </td>
        </tr>
        <tr>
          <td style="width: 20.83%; vertical-align: top;">
            <div style="font-size: 8pt;">James A. Mitarotonda</div>
          </td>
          <td style="width: 10.8%; vertical-align: top;">
            <div style="text-align: center; font-size: 8pt;">&#160;&#160;&#160;67,986</div>
          </td>
          <td style="width: 9%; vertical-align: top;">&#160;</td>
          <td style="width: 8.22%; vertical-align: top;">&#160;</td>
          <td style="width: 11.58%; vertical-align: top;">&#160;</td>
          <td style="width: 14.39%; vertical-align: top;">&#160;</td>
          <td style="width: 12.6%; vertical-align: top;">
            <div style="text-align: center; font-size: 8pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;762</div>
          </td>
          <td style="width: 12.6%; vertical-align: top;">
            <div style="text-align: center; font-size: 8pt;">&#160;&#160;68,748</div>
          </td>
        </tr>
        <tr>
          <td style="width: 20.83%; vertical-align: top;">
            <div style="font-size: 8pt;">Peggy B. Scott (4)</div>
          </td>
          <td style="width: 10.8%; vertical-align: top;">
            <div style="text-align: center; font-size: 8pt;">&#160;&#160;&#160;26,696</div>
          </td>
          <td style="width: 9%; vertical-align: top;">&#160;</td>
          <td style="width: 8.22%; vertical-align: top;">&#160;</td>
          <td style="width: 11.58%; vertical-align: top;">&#160;</td>
          <td style="width: 14.39%; vertical-align: top;">&#160;</td>
          <td style="width: 12.6%; vertical-align: top;">
            <div style="text-align: center; font-size: 8pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;762</div>
          </td>
          <td style="width: 12.6%; vertical-align: top;">
            <div style="text-align: center; font-size: 8pt;">&#160;&#160;27,458</div>
          </td>
        </tr>

    </table>
    <div>
      <table cellspacing="0" cellpadding="0" style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin-top: 6pt; margin-bottom: 6pt; width: 100%; text-align: left; color: #000000;" class="DSPFListTable" id="z110eb50d25484b23aebc1fc246fb9879">

          <tr>
            <td style="width: 36pt; vertical-align: top; align: right;">
              <div style="margin-left: 18pt; margin-top: 6pt; margin-bottom: 6pt; font-size: 8pt;">(1)</div>
            </td>
            <td style="width: auto; vertical-align: top;">
              <div style="margin-top: 6pt; margin-bottom: 6pt; font-size: 8pt;">This table discloses the compensation received by all non-employee directors who served as a director in 2019.&#160; Mr. Vlak did not receive any compensation for his service as a
                director of the Company.</div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <div>
        <table cellspacing="0" cellpadding="0" style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; width: 100%; text-align: left; color: #000000;" class="DSPFListTable" id="z094b19e4faa3486ba6f883784af396fc">

            <tr>
              <td style="width: 18pt;"><br>
              </td>
              <td style="width: 18pt; vertical-align: top; align: right; font-size: 8pt;">(2)</td>
              <td style="width: auto; vertical-align: top;">
                <div style="font-size: 8pt;">The amounts listed could include adjustments for fractional shares&#160;from previous periods. All Fees paid in newly issued stock of the Company.</div>
              </td>
            </tr>

        </table>
      </div>
    </div>
    <div><br>
    </div>
    <div>
      <table cellspacing="0" cellpadding="0" style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; width: 100%; text-align: left; color: #000000;" class="DSPFListTable" id="z0fbea668269746a6aeefb0e58301088a">

          <tr>
            <td style="width: 36pt; vertical-align: top; align: right;">
              <div style="margin-left: 18pt; font-size: 8pt;">(3)</div>
            </td>
            <td style="width: auto; vertical-align: top;">
              <div style="font-size: 8pt;">All non-employee directors are provided a life insurance benefit. Messrs. DiSanto, Henry and Mitarotonda have a $50,000 benefit and Mr. Everets and Mr. McManus have a $25,000 benefit. The life insurance benefit is
                reduced after age 70-1/2.</div>
            </td>
          </tr>

      </table>
    </div>
    <div><br>
    </div>
    <div>
      <table cellspacing="0" cellpadding="0" style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; width: 100%; text-align: left; color: #000000;" class="DSPFListTable" id="z88502e8bc45a429fb7e6287af2ecf433">

          <tr>
            <td style="width: 36pt; vertical-align: top; align: right;">
              <div style="margin-left: 18pt; font-size: 8pt;">(4)</div>
            </td>
            <td style="width: auto; vertical-align: top;">
              <div style="font-size: 8pt;">Mrs. Scott was elected as a director at the 2019 Annual Meeting, and her fees were pro-rated for the second quarter</div>
            </td>
          </tr>

      </table>
    </div>
    <div><br>
    </div>
    <div style="margin-bottom: 6pt; font-size: 8pt;">For information on compensation for Mr. Vlak, a director and the Chief Executive Officer of the Company, see the executive compensation tables beginning on page 23.</div>
    <div><br>
    </div>
    <div style="text-align: center; text-indent: -10pt; margin-left: 10pt; font-weight: bold;">POLICIES AND PROCEDURES CONCERNING RELATED PERSONS TRANSACTIONS</div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 22.5pt;">Our Code of Business Conduct and Ethics prohibits all conflicts of interest between the Company and any of its directors, officers and employees, except under guidelines approved by the Board or
      the Board Committees. A conflict of interest exists whenever an individual&#8217;s private interests interfere or conflict in any way (or even appear to interfere or conflict) with the interests of the Company. Employees are encouraged to report any
      conflicts of interest, or potential conflicts of interest, to their supervisors or superiors. However, if an employee does not believe it appropriate or if he or she is not comfortable approaching his or her supervisors or superiors, then the
      employee may contact either the Chairman of the Audit Committee or Company counsel.</div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 22.5pt;">To identify related party transactions, each year the Company requires our directors and executive officers to complete a questionnaire that identifies any transaction with the Company or any of
      its subsidiaries in which the director or executive officer or members of his or her family have an interest. If any related party transactions are reported, the Board reviews them to determine if the potential for a prohibited conflict of interest
      exists. Prior to its review, the Board will require full disclosure of all material facts concerning the relationship and financial interest of the relevant individuals in the transaction. Each year, our directors and executive officers also review
      our Code of Business Conduct and Ethics.</div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 22.5pt;">The Board has determined that no transactions occurred since the beginning of 2018 involving any director, director nominee or executive officer of the Company, any known 5% shareholder of the
      Company or any immediate family member of an<font style="background-color: #FFFFFF;">y of the foregoing persons (together &#8220;related persons&#8221;) that would require disclosure as a &#8220;related person transaction.&#8221;</font></div>
  </div>
  <div id="DSPFPageBreakArea" style="clear: both; margin-top: 10pt; margin-bottom: 10pt;">
    <div style="text-align: center;" id="DSPFPageNumberArea"><font style="font-size: 8pt; font-weight: normal; font-style: normal; font-family: 'Times New Roman',Times,serif;" id="DSPFPageNumber">20</font></div>
    <div id="DSPFPageBreak" style="page-break-after: always;">
      <hr noshade="noshade" style="border-width: 0px; clear: both; margin: 4px 0px; width: 100%; height: 2px; color: #000000; background-color: #000000;"></div>
  </div>
  <div><br>
    <div><br>
    </div>
    <div style="text-align: center; font-weight: bold;">COMPENSATION DISCUSSION AND ANALYSIS</div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 24pt;">Our named executive officers for fiscal year 2019 were:</div>
    <div><br>
    </div>
    <table cellspacing="0" cellpadding="0" style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; width: 100%; text-align: left; color: #000000;" id="z3ac31b5b099e4f38829b1926926be93e">

        <tr>
          <td style="width: 38.57%; vertical-align: bottom;">
            <div style="margin-right: 3pt; margin-left: 3pt;">August M. Vlak</div>
          </td>
          <td style="width: 61.43%; vertical-align: bottom;">
            <div style="margin-right: 3pt; margin-left: 3pt;">President and Chief Executive Officer</div>
          </td>
        </tr>
        <tr>
          <td style="width: 38.57%; vertical-align: bottom;">
            <div style="margin-right: 3pt; margin-left: 3pt;">John L. Sullivan III</div>
          </td>
          <td style="width: 61.43%; vertical-align: bottom;">
            <div style="margin-right: 3pt; margin-left: 3pt;">Vice President and Chief Financial Officer</div>
          </td>
        </tr>

    </table>
    <div style="background-color: #FFFFFF;">
      <div><br>
      </div>
      <div><br>
      </div>
      <div style="font-weight: bold;">Compensation Governance</div>
    </div>
    <div><br>
    </div>
    <div style="background-color: #FFFFFF;">
      <div style="text-align: justify; text-indent: 24.5pt;">The Compensation Committee recommends to the Board policies and processes for the regular and orderly review of the performance and compensation of the Company&#8217;s senior executive management
        personnel, including the President and Chief Executive Officer. The Compensation Committee reviews and approves corporate goals and objectives relevant to compensation of the Company&#8217;s Chief Executive Officer and other executive officers;
        recommends to the Board and/or the Company&#8217;s Management with respect to compensation of executives other than named executive officers and administers the Company&#8217;s stock plan, The Eastern Company 2010 Executive Stock Incentive Plan, and all other
        equity-based plans from time to time (and will administer the 2020 Plan if approved by shareholders at the Annual Meeting).&#160; The Compensation Committee regularly reviews, administers, and when necessary recommends changes to the Company&#8217;s stock
        incentive and performance-based compensation plans.</div>
    </div>
    <div><br>
    </div>
    <div style="background-color: #FFFFFF;">
      <div style="text-align: justify; text-indent: 24.5pt;">The Compensation Committee is comprised of members of the Board, none of whom may be an active or retired officer or employee of the Company or any of its subsidiaries. Members of the
        Compensation Committee are appointed annually by the Board. Messrs. Michael A. McManus, Jr., Charles W. Henry, James A. Mitarotonda and Peggy B. Scott are the members of the Compensation Committee. Mr. McManus has been the Chairman of the
        Compensation Committee since July 29, 2015. The Compensation Committee held five meetings during the fiscal year ended December 28, 2019. Neither the Compensation Committee nor management engaged any compensation consultant during fiscal year 2019.</div>
    </div>
    <div><br>
    </div>
    <div style="background-color: #FFFFFF;">
      <div style="text-align: justify; text-indent: 24.5pt;">This Compensation Discussion and Analysis focuses on:</div>
      <div><br>
      </div>
    </div>
    <div style="background-color: #FFFFFF;">
      <div>
        <table cellspacing="0" cellpadding="0" style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; width: 100%; text-align: left; color: #000000;" class="DSPFListTable" id="zcdaebea15db944258174b8c097148505">

            <tr>
              <td style="width: 18.7pt; vertical-align: top; align: right;">
                <div>&#8226;</div>
              </td>
              <td style="width: auto; vertical-align: top;">
                <div style="text-align: justify;">The guiding principles and objectives underlying the Company&#8217;s compensation program, including the performance levels that the program is designed to reward; and</div>
              </td>
            </tr>

        </table>
      </div>
      <div>
        <table cellspacing="0" cellpadding="0" style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; width: 100%; text-align: left; color: #000000;" class="DSPFListTable" id="zc00a8c80ebd74934bbe4721f22d24345">

            <tr>
              <td style="width: 18.7pt; vertical-align: top; align: right;">
                <div>&#8226;</div>
              </td>
              <td style="width: auto; vertical-align: top;">
                <div style="text-align: justify;">A description of each of the components of the compensation program, including an explanation as to why these elements were selected as the preferred means to achieve the compensation program&#8217;s objectives,
                  and how the amount of each element of compensation is determined.</div>
              </td>
            </tr>

        </table>
      </div>
    </div>
    <div><br>
    </div>
    <div style="background-color: #FFFFFF;">
      <div style="font-weight: bold;">Principles and Objectives of the Compensation Program</div>
    </div>
    <div><br>
    </div>
    <div style="background-color: #FFFFFF;">
      <div style="text-align: justify; text-indent: 24.5pt;">The Company&#8217;s compensation program and policy are designed to attract, motivate, retain and reward highly qualified executives and employees and to reinforce the relationship between individual
        performance and business results in a manner that aligns the interests of executives and shareholders.</div>
      <div><br>
      </div>
      <div style="text-align: justify; text-indent: 24.5pt;">At our 2019 annual meeting of shareholders, our shareholders were asked to vote on a non-binding resolution relating to the compensation of the Company&#8217;s named executive officers. The advisory
        vote requested that shareholders vote for a resolution approving of the compensation of the Company&#8217;s named executive officers, which resolution was adopted by the shareholders. The Compensation Committee has considered the results of this advisory
        vote, and has deemed it to indicate the shareholders&#8217; approval of the Company&#8217;s compensation package, which is designed to be competitive and to encourage executive retention. An advisory vote at our 2017 annual meeting of shareholders requested
        the shareholders to determine the frequency with which the compensation of the named executive officers would be presented for a shareholder vote. The shareholders elected to have such a vote every year. Based on the shareholders&#8217; vote, the Board
        has adopted a policy whereby an advisory vote on the compensation of the named executive officers will be held every year. Shareholders will not be required to vote again on the frequency of the shareholder vote for the compensation of the named
        executive officers until 2023.&#160; See Item No. 3 &#8211; Advisory Vote on the Compensation of the named executive officers.</div>
      <div><br>
      </div>
    </div>
    <div style="text-align: justify; text-indent: 24.5pt;">On June 27, 2016, the Board adopted an incentive compensation clawback policy as part of the Board&#8217;s ongoing efforts to strengthen the Company&#8217;s corporate governance and risk management.&#160; The
      policy is designed to ensure that incentive compensation is awarded based on accurate financial and operating data and the correct calculation of the Company&#8217;s performance against incentive targets.&#160; The policy requires the Compensation Committee to
      seek the recovery of incentive compensation in the event of fraud or misconduct or a restatement of the financial or operating results of the Company that results in the payment of inflated incentive compensation.</div>
    <div style="text-align: justify; text-indent: 24.5pt;"> <br>
    </div>
    <div style="text-align: justify; text-indent: 24.5pt;">
      <div style="text-indent: 24.5pt;">On March 6, 2018, the Board adopted an anti-hedging policy that prohibits Restricted Persons (as defined in such policy) from short-term trading, taking short positions, or hedging in Company Shares.</div>
      <div><br>
      </div>
    </div>
    <div style="clear: both; margin-top: 10pt; margin-bottom: 10pt;" id="DSPFPageBreakArea">
      <div style="text-align: center;" id="DSPFPageNumberArea"><font style="font-size: 8pt; font-weight: normal; font-style: normal; font-family: 'Times New Roman',Times,serif;" id="DSPFPageNumber">21</font></div>
      <div style="page-break-after:always;" id="DSPFPageBreak">
        <hr noshade="noshade" style="margin: 4px 0px; width: 100%; border-width: 0; height: 2px; color: #000000; background-color: #000000; clear: both;"></div>
    </div>
    <div><br>
    </div>
    <div style="background-color: #FFFFFF;">
      <div><br>
      </div>
      <br>
      <div style="text-align: justify; text-indent: 24.5pt;">The following principles guide the Company&#8217;s compensation practices as applied to all executives.</div>
    </div>
    <div><br>
    </div>
    <div style="background-color: #FFFFFF;">
      <div style="text-align: justify; font-style: italic; font-weight: bold;">Compensation levels should be sufficiently competitive to attract and retain highly qualified executives and employees.</div>
    </div>
    <div><br>
    </div>
    <div style="background-color: #FFFFFF;">
      <div style="text-align: justify; text-indent: 24.5pt;">The Company endeavors to pay compensation at levels consistent with prevailing levels of compensation for similar positions in the geographic areas in which the Company maintains operations, in
        order to enable the Company to attract and retain the talent needed to achieve its business objectives. The Compensation Committee has used various sources to evaluate the competitiveness and overall structure of executive compensation and
        non-employee director compensation.</div>
    </div>
    <div style="background-color: #FFFFFF;">
      <div><br>
      </div>
      <div style="text-align: justify; font-style: italic; font-weight: bold;">Compensation should be aligned with performance.</div>
      <div><br>
      </div>
    </div>
    <div style="background-color: #FFFFFF;">
      <div style="text-align: justify; text-indent: 27pt;">The Company believes that a significant portion of executive compensation should take the form of annual incentives based on the annual results of operations achieved by the Company and its
        subsidiaries as well as long-term value creation. The Company believes that its practice of paying annual incentives based on individual and overall results of operations supports an integrated business model.</div>
    </div>
    <div><br>
    </div>
    <div style="background-color: #FFFFFF;">
      <div style="text-align: justify; text-indent: 24.5pt;">The Company&#8217;s incentive compensation program is balanced between short- and long-term incentive compensation. Short-term incentive compensation&#8212;in the form of annual cash incentive awards&#8212;is
        awarded based on annual financial performance and operational goals. This design achieves our objective of offering superior pay for superior performance. Long-term incentive compensation is an important component of the Company&#8217;s total
        compensation for executives. The Company&#8217;s long-term incentive compensation program grants stock options, stock appreciation rights and restricted stock awards at appropriate times and in appropriate amounts to serve as a long-term performance
        incentive. The Compensation Committee believes that the Company&#8217;s long-term incentive program provides executives with the opportunity to increase their ownership in the Company, thereby more closely aligning the best interest of the shareholders
        and the executives. The Company does not maintain minimum share ownership requirements for any executive.</div>
    </div>
    <div style="background-color: #FFFFFF;">
      <div><br>
      </div>
    </div>
    <div style="background-color: #FFFFFF;">
      <div style="text-align: justify; font-style: italic; font-weight: bold;">Compensation should reflect an individual&#8217;s position and responsibility, and compensation for named executive officers should be more heavily weighted toward incentive pay.</div>
    </div>
    <div><br>
    </div>
    <div style="background-color: #FFFFFF;">
      <div style="text-align: justify; text-indent: 24.5pt;">Total compensation should generally increase with position and responsibility. Employees in named executive officer positions have greater roles and responsibilities associated with achieving the
        Company&#8217;s performance goals, and should thus have a greater portion of their compensation tied to the achievement of those goals. Accordingly, a greater percentage of compensation for more senior positions, particularly those with the greatest
        responsibility for driving achievement of performance targets, is paid in the form of potential short- and long-term incentive pay.</div>
    </div>
    <div><br>
    </div>
    <div><br>
    </div>
    <div style="background-color: #FFFFFF;">
      <div style="text-align: justify; font-weight: bold;">Components of the Compensation Program</div>
    </div>
    <div><br>
    </div>
    <div style="background-color: #FFFFFF;">
      <div style="text-align: justify; font-style: italic; font-weight: bold;">Base salary</div>
    </div>
    <div><br>
    </div>
    <div style="background-color: #FFFFFF;">
      <div style="text-align: justify; text-indent: 24.5pt;">Base salaries are set after referencing market data for similar positions from the Towers Watson Data Services survey report on Top Management Compensation in the manufacturing sector and the
        Company&#8217;s independent benchmarking of peer companies.&#160; The Company selects peer companies based on comparable size, nature of operations, and complexity and scope of business activities. <br>
      </div>
      <div><br>
      </div>
      <div style="text-align: justify; text-indent: 24.5pt;">The compensation of the Company&#8217;s President and Chief Executive Officer, August M. Vlak, is determined pursuant to the terms and conditions of an employment agreement between Mr. Vlak and the
        Company, entered into effective January 1, 2018.&#160; Effective January 1, 2019, the Compensation Committee recommended, and the Board approved, a base salary for Mr. Vlak of $461,250. Mr. Vlak&#8217;s base salary will remain $461,250 for 2020.</div>
    </div>
    <div><br>
    </div>
    <div style="background-color: #FFFFFF;">
      <div style="text-align: justify; text-indent: 24.5pt;">The compensation of named executive officer, John L. Sullivan III, Vice President and Chief Financial Officer, is determined annually by the Compensation Committee and approved by the Board. Mr.
        Sullivan&#8217;s base salary was $333,000 for the year ended December 31, 2019. Effective January 1, 2020, Mr. Sullivan received an increase of 3% in his base salary to $343,000.</div>
      <div><br>
      </div>
      <div style="text-align: justify; text-indent: 24.5pt;">Total base salary compensation of Messrs. Vlak and Sullivan is below the average base salary for similar positions at comparable organizations in the New England region of the United States as
        reported in the Towers Watson Data Services survey and the Company&#8217;s independent benchmarking of peer companies.</div>
    </div>
    <div style="clear: both; margin-top: 10pt; margin-bottom: 10pt;" id="DSPFPageBreakArea">
      <div style="text-align: center;" id="DSPFPageNumberArea"><font style="font-size: 8pt; font-weight: normal; font-style: normal; font-family: 'Times New Roman',Times,serif;" id="DSPFPageNumber">22</font></div>
      <div style="page-break-after:always;" id="DSPFPageBreak">
        <hr noshade="noshade" style="margin: 4px 0px; width: 100%; border-width: 0; height: 2px; color: #000000; background-color: #000000; clear: both;"></div>
    </div>
    <div><br>
    </div>
    <div style="background-color: #FFFFFF;">
      <div><br>
      </div>
      <div style="text-align: justify; font-style: italic; font-weight: bold;">Short-Term Incentives &#8212; Annual Cash Incentives</div>
    </div>
    <div><br>
    </div>
    <div style="background-color: #FFFFFF;">
      <div style="text-align: justify; text-indent: 36pt;">For fiscal year 2019, the named executive officers were eligible to receive short-term incentive compensation based on the annual performance of the Company.&#160; Short-term incentives were based on
        specific goals in the Company&#8217;s annual operating plan, as approved by the Board on February 25, 2019 and subsequently adjusted to reflect one-time costs and earnings associated with the acquisition of Big 3 Precision on October 31, 2019.&#160; Seventy
        percent of the short-term incentive for August M. Vlak, President and Chief Executive Officer, was determined by the Company&#8217;s 2019 earnings per share and thirty percent was determined by working capital efficiency of the Company.&#160; Working capital
        was defined as the combined current assets less current liabilities less cash of the businesses.&#160; Working capital efficiency is calculated as the average quarterly working capital divided by sales.&#160; The Company&#8217;s adjusted earnings per share goal
        was $2.12, including adjustments for one-time costs and earnings associated with the Big 3 Precision Acquisition.&#160; The Company&#8217;s working capital efficiency goal for 2019 was 24.5%.&#160; Seventy percent of the short-term incentive for the named
        executive officer, John L. Sullivan III, Vice President and Chief Financial Officer, was determined by the Company&#8217;s 2019 earnings per share and thirty percent was determined by working capital efficiency of the Company.&#160; All incentive payments are
        subject to final approval by the Compensation Committee.</div>
    </div>
    <div style="background-color: #FFFFFF;">
      <div><br>
      </div>
      <div style="text-align: justify; text-indent: 24.5pt;">During 2019, if the Company achieved its earnings per share and working capital efficiency goals, Mr. Vlak was eligible to earn a total short-term incentive equal to 100% of his base salary.&#160; The
        threshold for earning each component of the short-term incentive was achieved at 80% of the goal.&#160; At 80% achievement of each goal, Mr. Vlak was eligible to earn 50% of the associated short-term incentive. If the Company achieved less than 80% of a
        goal, Mr. Vlak was not eligible to earn the associated short-term incentive.&#160; At 125% achievement of each goal, Mr. Vlak was eligible to earn 135% of the associated short-term incentive.&#160; Mr. Vlak was eligible to earn a maximum short-term incentive
        of 175% of his base compensation.</div>
      <div><br>
      </div>
      <div style="text-align: justify; text-indent: 24.5pt;">During 2019, if the Company achieved its earnings per share, working capital efficiency and personal goals, Mr. Sullivan was eligible to earn a total short-term incentive equal to 40% of his base
        salary.&#160; The threshold for earning each component of the short-term incentive was achieved at 80% of the goal.&#160; At 80% achievement Mr. Sullivan was eligible to earn 50% of the associated short-term incentive. If the Company achieved less than 80%
        of a goal, Mr. Sullivan was not eligible to earn the associated short-term incentive.&#160; At 125% achievement of each goal, Mr. Sullivan was eligible to earn 54% of the associated short-term incentive.&#160; Mr. Sullivan was eligible to earn a maximum
        short-term incentive of 70% of his base compensation.</div>
    </div>
    <div><br>
    </div>
    <div style="background-color: #FFFFFF;">
      <div style="text-align: justify; text-indent: 24.5pt;">During 2019, Mr. Vlak earned an annual cash incentive of $341,100, equal to 74% of his base salary.&#160; The annual cash incentive included $265,075 for the Company&#8217;s achievement of 89% of its
        earnings per share goal for 2019, weighted by 70%.&#160; The annual cash incentive also included $76,025 for the Company&#8217;s achievement of 92% of its working capital efficiency goal for 2019 weighted at 30%.</div>
      <div><br>
      </div>
      <div style="text-align: justify; text-indent: 24.5pt;">During 2019, Mr. Sullivan earned a cash incentive of $99,999, equal to 30% of base compensation.&#160; The annual cash incentive included $67,016 for the Company&#8217;s achievement of 89% of its earnings
        per share goal for 2019, weighted by 70%.&#160; The annual cash incentive also included $32,982 for the Company&#8217;s achievement of 92% of its working capital goal for 2019, weighted at 30%.&#160; The Company&#8217;s working capital goal for 2018 was 22.5%.</div>
    </div>
    <div style="background-color: #FFFFFF;">
      <div><br>
      </div>
    </div>
    <div><br>
    </div>
    <div style="text-align: justify; margin-left: 36pt;">The following table shows the incentive calculation for fiscal year 2019 based on the short-term incentive earned:</div>
    <div><br>
    </div>
    <table cellspacing="0" cellpadding="0" style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; width: 100%; text-align: left; color: #000000;" id="z2a52992687954714b782b468cd4d6e4a">

        <tr>
          <td style="width: 43.49%; vertical-align: bottom;">&#160;</td>
          <td style="width: 24.06%; vertical-align: bottom; border-bottom: 2px solid black;">
            <div style="text-align: center;">Mr. Vlak</div>
          </td>
          <td style="width: 4.8%; vertical-align: top;">&#160;</td>
          <td style="width: 24.05%; vertical-align: bottom; border-bottom: 2px solid black;">
            <div style="text-align: center;">Mr. Sullivan</div>
          </td>
          <td style="width: 3.61%; vertical-align: top;">&#160;</td>
        </tr>
        <tr>
          <td style="width: 43.49%; vertical-align: bottom;">
            <div>Base Salary</div>
          </td>
          <td style="width: 24.06%; vertical-align: bottom;">
            <div style="text-align: center;">$461,000</div>
          </td>
          <td style="width: 4.8%; vertical-align: top;">&#160;</td>
          <td style="width: 24.05%; vertical-align: bottom;">
            <div style="text-align: center;">$333,000</div>
          </td>
          <td style="width: 3.61%; vertical-align: top;">&#160;</td>
        </tr>
        <tr>
          <td style="width: 43.49%; vertical-align: bottom;">
            <div>Incentive achievement</div>
          </td>
          <td style="width: 24.06%; vertical-align: bottom; border-bottom: #000000 2px solid;">
            <div style="text-align: center;">&#160;&#160;74.0%</div>
          </td>
          <td style="width: 4.8%; vertical-align: top;">&#160;</td>
          <td style="width: 24.05%; vertical-align: bottom; border-bottom: #000000 2px solid;">
            <div style="text-align: center;">&#160;&#160;&#160;&#160;&#160;30.0%</div>
          </td>
          <td style="width: 3.61%; vertical-align: top;">&#160;</td>
        </tr>
        <tr>
          <td style="width: 43.49%; vertical-align: bottom;">
            <div>Incentive earned</div>
          </td>
          <td style="width: 24.06%; vertical-align: bottom;">
            <div style="text-align: center;">$341,100</div>
          </td>
          <td style="width: 4.8%; vertical-align: top;">&#160;</td>
          <td style="width: 24.05%; vertical-align: bottom;">
            <div style="text-align: center;">$99,999</div>
          </td>
          <td style="width: 3.61%; vertical-align: top;">&#160;</td>
        </tr>

    </table>
    <div><br>
    </div>
    <div style="background-color: #FFFFFF;">
      <div><br>
      </div>
    </div>
    <div style="clear: both; margin-top: 10pt; margin-bottom: 10pt;" id="DSPFPageBreakArea">
      <div style="text-align: center;" id="DSPFPageNumberArea"><font style="font-size: 8pt; font-weight: normal; font-style: normal; font-family: 'Times New Roman',Times,serif;" id="DSPFPageNumber">23</font></div>
      <div style="page-break-after:always;" id="DSPFPageBreak">
        <hr noshade="noshade" style="margin: 4px 0px; width: 100%; border-width: 0; height: 2px; color: #000000; background-color: #000000; clear: both;"></div>
    </div>
    <div style="background-color: #FFFFFF;">
      <div><br>
      </div>
      <div><br>
      </div>
      <div style="text-align: justify; font-style: italic; font-weight: bold;">Long-term incentives and performance based SAR&#8217;s</div>
      <div><br>
      </div>
    </div>
    <div style="background-color: #FFFFFF;">
      <div style="text-align: justify; text-indent: 36pt;">On March 2, 2017 the named executive officers were granted stock appreciation rights (SARs) which vest over a three-year period, the 2017 - 2019 performance cycle, provided certain performance
        goals are achieved.&#160; At the time of the grant, the exercise price of $19.10 per unit was equal to 100% of the fair market value of a Common Share on the date of the grant of the SAR.&#160; The performance goal is the Return on Invested Capital (ROIC)
        achieved in each of the three fiscal years ending December 2017, December 2018 and December 2019.&#160; The ROIC is defined as the Company&#8217;s average annual fixed assets, intangible assets, and current assets; reduced by the sum of the Company&#8217;s average
        annual current liabilities and cash.</div>
    </div>
    <div style="background-color: #FFFFFF;">
      <div><br>
      </div>
    </div>
    <div style="background-color: #FFFFFF;">
      <div style="text-align: justify; text-indent: 36pt;">On February 7, 2018 the named executive officers were granted stock appreciation rights (SARs) which vest February 1, 2021, the 2020 performance cycle, provided certain performance goals are
        achieved.&#160; At the time of the grant, the exercise price of $ 24.90 per unit was equal to 100% of the fair market value of a Common Share on the date of the grant of the SAR.&#160; The performance goal is the Company&#8217;s Book Value at the close of December
        of fiscal year 2020.&#160; The Company&#8217;s Book Value is defined as the total assets minus the value of total liabilities as recorded on the Company&#8217;s balance sheet.</div>
      <div><br>
      </div>
      <div style="text-align: justify; text-indent: 36pt;">On February 25, 2019 the named executive officers were granted stock appreciation rights (SARs) which vest February 1, 2022, the 2021 performance cycle, provided certain performance goals are
        achieved.&#160; At the time of the grant, the exercise price of $26.30 per unit was equal to 100% of the fair market value of a Common Share on the date of the grant of the SAR.&#160; The performance goal is the Company&#8217;s Book Value at the close of December
        of fiscal year 2021.&#160; The Company&#8217;s Book Value is defined as the total assets minus the value of total liabilities as recorded on the Company&#8217;s balance sheet.</div>
      <div><br>
      </div>
      <div><br>
      </div>
      <div style="text-align: justify; text-indent: 36pt;">The performance cycles are as follows:</div>
      <div><br>
      </div>
      <div><br>
      </div>
    </div>
    <table cellspacing="0" cellpadding="0" style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; width: 100%; text-align: left; color: #000000;" id="zdac4a1d9ca134771b415af97d5d08a14">

        <tr>
          <td style="width: 15.97%; vertical-align: top;">&#160;</td>
          <td style="width: 10.64%; vertical-align: top;">&#160;</td>
          <td colspan="2" style="width: 22.35%; vertical-align: top;">
            <div style="text-align: center; margin-left: 36pt;">Grantee</div>
          </td>
          <td style="width: 18.04%; vertical-align: top;">&#160;</td>
          <td style="width: 21.29%; vertical-align: top;">&#160;</td>
          <td style="width: 11.71%; vertical-align: top;">&#160;</td>
        </tr>
        <tr>
          <td style="width: 15.97%; vertical-align: top;">&#160;</td>
          <td style="width: 10.64%; vertical-align: top;">&#160;</td>
          <td colspan="2" style="width: 22.35%; vertical-align: middle;">
            <div style="text-align: center; margin-left: 36pt;">SARs (units)</div>
          </td>
          <td style="width: 18.04%; vertical-align: top;">&#160;</td>
          <td style="width: 21.29%; vertical-align: top;">&#160;</td>
          <td style="width: 11.71%; vertical-align: top;">&#160;</td>
        </tr>
        <tr>
          <td style="width: 15.97%; vertical-align: top; border-bottom: #000000 2px solid;">&#160;</td>
          <td style="width: 10.64%; vertical-align: top; border-bottom: #000000 2px solid;">&#160;</td>
          <td style="width: 10.64%; vertical-align: top; border-bottom: #000000 2px solid;">
            <div style="text-align: justify; margin-left: 36pt;"><u>Vlak</u></div>
          </td>
          <td style="width: 11.71%; vertical-align: top; border-bottom: #000000 2px solid;">
            <div style="text-align: justify; margin-left: 36pt;"><u>Sullivan</u></div>
          </td>
          <td style="width: 18.04%; vertical-align: top; border-bottom: #000000 2px solid;">&#160;</td>
          <td style="width: 21.29%; vertical-align: top; border-bottom: #000000 2px solid;">&#160;</td>
          <td style="width: 11.71%; vertical-align: top; border-bottom: #000000 2px solid;">&#160;</td>
        </tr>
        <tr>
          <td style="width: 15.97%; vertical-align: top;">&#160;</td>
          <td style="width: 10.64%; vertical-align: top;">&#160;</td>
          <td style="width: 10.64%; vertical-align: top;">&#160;</td>
          <td style="width: 11.71%; vertical-align: top;">&#160;</td>
          <td style="width: 18.04%; vertical-align: bottom; border-bottom: 2px solid black; text-align: center;">
            <div style="margin-left: 36pt; font-family: 'Times New Roman',Times,serif;">ROIC Target</div>
          </td>
          <td style="width: 21.29%; vertical-align: top; border-bottom: 2px solid black;">
            <div style="text-align: center; margin-left: 36pt;">ROIC Achieved</div>
          </td>
          <td style="width: 11.71%; vertical-align: bottom; border-bottom: 2px solid black; text-align: center;">
            <div style="margin-left: 36pt; font-family: 'Times New Roman',Times,serif;">Vested</div>
          </td>
        </tr>
        <tr>
          <td style="width: 15.97%; vertical-align: top; border-bottom: #000000 2px solid;">
            <div style="text-align: justify; margin-left: 36pt;">2017 &#8211; 2019<u></u></div>
            <div style="text-align: justify; margin-left: 36pt;">Performance</div>
            <div style="text-align: justify; margin-left: 36pt;">Period</div>
          </td>
          <td style="width: 10.64%; vertical-align: top; border-bottom: #000000 2px solid;">
            <div style="text-align: justify; margin-left: 36pt;">Year 1 Year 2 Year 3</div>
          </td>
          <td style="width: 10.64%; vertical-align: top; border-bottom: #000000 2px solid;">
            <div style="text-align: justify; margin-left: 36pt;">&#160;&#160;6,667</div>
            <div style="text-align: justify; margin-left: 36pt;">&#160;&#160;6,667</div>
            <div style="text-align: justify; margin-left: 36pt;">&#160;&#160;6,666</div>
          </td>
          <td style="width: 11.71%; vertical-align: top; border-bottom: #000000 2px solid;">
            <div style="text-align: justify; margin-left: 36pt;">&#160;&#160;3,334</div>
            <div style="text-align: justify; margin-left: 36pt;">&#160;&#160;3,333</div>
            <div style="text-align: justify; margin-left: 36pt;">&#160;&#160;3,333</div>
          </td>
          <td style="width: 18.04%; vertical-align: top; border-bottom: #000000 2px solid;">
            <div style="text-align: center; margin-left: 36pt;">9.1%</div>
            <div style="text-align: center; margin-left: 36pt;">10.3%</div>
            <div style="text-align: center; margin-left: 36pt;">11.5%</div>
          </td>
          <td style="width: 21.29%; vertical-align: top; border-bottom: #000000 2px solid;">
            <div style="text-align: center; margin-left: 36pt;">10.7%</div>
            <div style="text-align: center; margin-left: 36pt;">10.4%</div>
            <div style="text-align: center; margin-left: 36pt;">&#160;&#160;9.8%</div>
          </td>
          <td style="width: 11.71%; vertical-align: top; border-bottom: #000000 2px solid;">
            <div style="text-align: center; margin-left: 36pt;">Yes</div>
            <div style="text-align: center; margin-left: 36pt;">Yes</div>
            <div style="text-align: center; margin-left: 36pt;">50%</div>
          </td>
        </tr>
        <tr>
          <td style="width: 15.97%; vertical-align: top;">&#160;</td>
          <td style="width: 10.64%; vertical-align: top;">&#160;</td>
          <td style="width: 10.64%; vertical-align: top;">&#160;</td>
          <td style="width: 11.71%; vertical-align: top;">&#160;</td>
          <td style="width: 18.04%; vertical-align: top;">&#160;</td>
          <td style="width: 21.29%; vertical-align: top;">&#160;</td>
          <td style="width: 11.71%; vertical-align: top;">&#160;</td>
        </tr>
        <tr>
          <td style="width: 15.97%; vertical-align: top;">&#160;</td>
          <td style="width: 10.64%; vertical-align: top;">&#160;</td>
          <td style="width: 10.64%; vertical-align: top;">&#160;</td>
          <td style="width: 11.71%; vertical-align: top;">&#160;</td>
          <td style="width: 18.04%; vertical-align: bottom; border-bottom: 2px solid black;">
            <div style="text-align: center; margin-left: 36pt;">Book Value</div>
            <div style="text-align: center; margin-left: 36pt;">Target</div>
          </td>
          <td style="width: 21.29%; vertical-align: bottom; border-bottom: 2px solid black;">
            <div style="text-align: center; margin-left: 36pt;">Book Value</div>
            <div style="text-align: center; margin-left: 36pt;">Achieved</div>
          </td>
          <td style="width: 11.71%; vertical-align: bottom; border-bottom: 2px solid black;">
            <div style="text-align: center; margin-left: 36pt;">Vested</div>
          </td>
        </tr>
        <tr>
          <td style="width: 15.97%; vertical-align: top; border-bottom: #000000 2px solid;">
            <div style="text-align: justify; margin-left: 36pt;">2020</div>
            <div style="text-align: justify; margin-left: 36pt;">Performance</div>
            <div style="text-align: justify; margin-left: 36pt;">Period</div>
          </td>
          <td style="width: 10.64%; vertical-align: top; border-bottom: #000000 2px solid;">
            <div style="text-align: justify; margin-left: 36pt;">Year 1</div>
          </td>
          <td style="width: 10.64%; vertical-align: top; border-bottom: #000000 2px solid;">
            <div style="text-align: justify; margin-left: 36pt;">20,000</div>
          </td>
          <td style="width: 11.71%; vertical-align: top; border-bottom: #000000 2px solid;">
            <div style="text-align: justify; margin-left: 36pt;">10,000</div>
          </td>
          <td style="width: 18.04%; vertical-align: top; border-bottom: #000000 2px solid;">
            <div style="text-align: center; margin-left: 36pt;">$117.8 million</div>
          </td>
          <td style="width: 21.29%; vertical-align: top; border-bottom: #000000 2px solid;">
            <div style="text-align: center; margin-left: 36pt;">----</div>
          </td>
          <td style="width: 11.71%; vertical-align: top; border-bottom: #000000 2px solid;">
            <div style="text-align: center; margin-left: 36pt;">----</div>
          </td>
        </tr>
        <tr>
          <td style="width: 15.97%; vertical-align: top;">&#160;</td>
          <td style="width: 10.64%; vertical-align: top;">&#160;</td>
          <td style="width: 10.64%; vertical-align: top;">&#160;</td>
          <td style="width: 11.71%; vertical-align: top;">&#160;</td>
          <td style="width: 18.04%; vertical-align: top;">&#160;</td>
          <td style="width: 21.29%; vertical-align: top;">&#160;</td>
          <td style="width: 11.71%; vertical-align: top;">&#160;</td>
        </tr>
        <tr>
          <td style="width: 15.97%; vertical-align: top;">&#160;</td>
          <td style="width: 10.64%; vertical-align: top;">&#160;</td>
          <td style="width: 10.64%; vertical-align: top;">&#160;</td>
          <td style="width: 11.71%; vertical-align: top;">&#160;</td>
          <td style="width: 18.04%; vertical-align: bottom; border-bottom: 2px solid black;">
            <div style="text-align: center; margin-left: 36pt;">Book Value</div>
            <div style="text-align: center; margin-left: 36pt;">Target</div>
          </td>
          <td style="width: 21.29%; vertical-align: bottom; border-bottom: 2px solid black;">
            <div style="text-align: center; margin-left: 36pt;">Book Value</div>
            <div style="text-align: center; margin-left: 36pt;">Achieved</div>
          </td>
          <td style="width: 11.71%; vertical-align: bottom; border-bottom: 2px solid black;">
            <div style="text-align: center; margin-left: 36pt;">Vested</div>
          </td>
        </tr>
        <tr>
          <td style="width: 15.97%; vertical-align: top;">
            <div style="text-align: justify; margin-left: 36pt;">2021</div>
            <div style="text-align: justify; margin-left: 36pt;">Performance</div>
            <div style="text-align: justify; margin-left: 36pt;">Period</div>
          </td>
          <td style="width: 10.64%; vertical-align: top;">
            <div style="text-align: justify; margin-left: 36pt;">Year 1</div>
          </td>
          <td style="width: 10.64%; vertical-align: top;">
            <div style="text-align: justify; margin-left: 36pt;">12,000</div>
          </td>
          <td style="width: 11.71%; vertical-align: top;">
            <div style="text-align: justify; margin-left: 36pt;">&#160;&#160;5,000</div>
          </td>
          <td style="width: 18.04%; vertical-align: top;">
            <div style="text-align: center; margin-left: 36pt;">$127.0 million</div>
          </td>
          <td style="width: 21.29%; vertical-align: top;">
            <div style="text-align: center; margin-left: 36pt;">----</div>
          </td>
          <td style="width: 11.71%; vertical-align: top;">
            <div style="text-align: center; margin-left: 36pt;">----</div>
          </td>
        </tr>
        <tr>
          <td style="width: 15.97%; vertical-align: top; border-bottom: #000000 2px solid;">&#160;</td>
          <td style="width: 10.64%; vertical-align: top; border-bottom: #000000 2px solid;">&#160;</td>
          <td style="width: 10.64%; vertical-align: top; border-bottom: #000000 2px solid;">&#160;</td>
          <td style="width: 11.71%; vertical-align: top; border-bottom: #000000 2px solid;">&#160;</td>
          <td style="width: 18.04%; vertical-align: top; border-bottom: #000000 2px solid;">&#160;</td>
          <td style="width: 21.29%; vertical-align: top; border-bottom: #000000 2px solid;">&#160;</td>
          <td style="width: 11.71%; vertical-align: top; border-bottom: #000000 2px solid;">&#160;</td>
        </tr>

    </table>
    <div style="background-color: #FFFFFF;">
      <div><br>
      </div>
    </div>
    <div style="background-color: #FFFFFF;">
      <div><br>
      </div>
      <div style="clear: both; margin-top: 10pt; margin-bottom: 10pt;" id="DSPFPageBreakArea">
        <div style="text-align: center;" id="DSPFPageNumberArea"><font style="font-size: 8pt; font-weight: normal; font-style: normal; font-family: 'Times New Roman',Times,serif;" id="DSPFPageNumber">24</font></div>
        <div style="page-break-after:always;" id="DSPFPageBreak">
          <hr noshade="noshade" style="margin: 4px 0px; width: 100%; border-width: 0; height: 2px; color: #000000; background-color: #000000; clear: both;"></div>
      </div>
      <div style="text-align: justify; font-style: italic; font-weight: bold;">Retirement and Other Post-Termination Plans</div>
    </div>
    <div><br>
    </div>
    <div style="background-color: #FFFFFF;">
      <div style="text-align: justify; font-style: italic;">401(k) Plan</div>
    </div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 36pt;">The Company maintains a savings and investment plan (the &#8220;SIP Plan&#8221;) for eligible employees, including executive officers. An eligible employee who participates in the SIP Plan may execute a salary
      reduction agreement requiring the Company to reduce his or her taxable earnings by a percentage of his or her compensation (as elected by the participant) and to contribute that amount to the SIP Plan. The amount of the contribution could not exceed
      $19,000 for calendar year 2019, plus an additional $6,000 catch-up contribution for those participants ages 50 and older.</div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 36pt;">If an employee executes such a salary reduction agreement, the Company will make a matching contribution to the SIP Plan on behalf of the employee.&#160; For 2019, the matching contribution equaled 50% of
      that portion of an employee&#8217;s salary reduction contribution that did not exceed 6% of his or her compensation.</div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 36pt;">Effective June 1, 2016, the SIP Plan was amended to increase the non-discretionary profit sharing contribution to 3%, and eligibility for the profit sharing contribution was extended to all non-union
      U.S. employees. The SIP Plan was also amended to provide for a non-discretionary contribution (the &#8220;transitional credit&#8221;) for certain non-union U.S. employees who were eligible to participate in the Salaried Employees Retirement Plan of The Eastern
      Company (the &#8220;Salaried Plan&#8221;).&#160; The amount of this non-discretionary contribution ranges from 0% to 4% of compensation, based on the age of the individual on June 1, 2016.</div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 36pt;">Earnings in excess of $280,000 for calendar year 2019 cannot be taken into account under the SIP Plan. An employee is fully vested in his or her salary reduction contributions and the earnings on
      those contributions. An employee will become vested in any matching contributions, transitional credits, and non-discretionary profit sharing contributions, and the earnings thereon, under a graded vesting schedule, with full vesting after completing
      five years of service or upon reaching age 65. Employees who are participating in the SIP Plan may direct that their account balances be invested in one or more investment options offered under the plan.</div>
    <div><br>
    </div>
    <div style="font-style: italic;">Retirement Benefits</div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 36pt;">On April 5, 2016, the Board passed a resolution freezing benefit accruals under the Salaried Plan, effective as of May 31, 2016.&#160; As a result, compensation and years of service earned after May 31,
      2016 are not taken into account in determining the amount of a member&#8217;s retirement benefit.</div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 36pt;">An employee reaches his or her normal retirement date and can begin benefits without reduction upon reaching age 65</div>
    <div style="text-align: justify;">(or, if later, the earlier of the attainment of age 70 or the completion of five years of participation in the plan). An employee reaches his or her early retirement date when he or she reaches age 55 after completing
      20 years of service. An employee who is eligible for early retirement can elect to begin to receive his or her benefits on an actuarially reduced basis. In addition, if an employee&#8217;s age and years of service equal at least 90, the employee can elect
      to begin to receive his or her benefits with a smaller reduction for early commencement than is otherwise applicable for early retirement.</div>
    <div><br>
    </div>
    <div style="text-align: justify; font-style: italic;">Pension Benefits Table</div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 22.5pt;">The following table provides certain information regarding the present value of accumulated benefits under the Company&#8217;s qualified and nonqualified defined benefit pension plans as of the last day
      of the 2019 fiscal year:</div>
    <div><br>
    </div>
    <div><br>
    </div>
    <table cellspacing="0" cellpadding="0" style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; width: 100%; text-align: left; color: #000000;" id="z0c53330e0af0424683b4483abc5e4b8c">

        <tr>
          <td style="width: 19.46%; vertical-align: bottom; border-bottom: #000000 2px solid;">
            <div style="font-size: 8pt; font-weight: bold;">Name</div>
          </td>
          <td style="width: 29.7%; vertical-align: bottom; border-bottom: #000000 2px solid;">
            <div style="font-size: 8pt; font-weight: bold;">Plan Name</div>
          </td>
          <td style="width: 19.4%; vertical-align: bottom; border-bottom: #000000 2px solid;">
            <div style="font-size: 8pt; font-weight: bold;">Number of Years of Credited Service (#)</div>
          </td>
          <td style="width: 20.81%; vertical-align: bottom; border-bottom: #000000 2px solid;">
            <div style="font-size: 8pt; font-weight: bold;">Present Value of Accumulated Benefit ($) (1)</div>
          </td>
          <td style="width: 10.64%; vertical-align: bottom; border-bottom: #000000 2px solid;">
            <div style="font-size: 8pt; font-weight: bold;">Payments During Last Fiscal Year ($)</div>
          </td>
        </tr>
        <tr>
          <td style="width: 19.46%; vertical-align: top; border-bottom: #000000 2px solid;">
            <div style="font-size: 8pt;">August M. Vlak</div>
          </td>
          <td style="width: 29.7%; vertical-align: top; border-bottom: #000000 2px solid;">
            <div style="font-size: 8pt;">Salaried Employees Retirement Plan of The Eastern Company(2)</div>
          </td>
          <td style="width: 19.4%; vertical-align: top; border-bottom: #000000 2px solid;">
            <div style="text-align: center; font-size: 8pt;">&#160;3</div>
          </td>
          <td style="width: 20.81%; vertical-align: bottom; border-bottom: 2px solid rgb(0, 0, 0); text-align: center;">
            <div style="font-family: 'Times New Roman',Times,serif; font-size: 8pt;">$&#160; &#160; &#160; &#160; &#160; &#160; &#160; 0</div>
          </td>
          <td style="width: 10.64%; vertical-align: top; border-bottom: #000000 2px solid;">
            <div style="text-align: center; font-size: 8pt;">-</div>
          </td>
        </tr>
        <tr>
          <td style="width: 19.46%; vertical-align: top; border-bottom: #000000 2px solid;">
            <div style="font-size: 8pt;">John L. Sullivan III</div>
          </td>
          <td style="width: 29.7%; vertical-align: top; border-bottom: #000000 2px solid;">
            <div style="font-size: 8pt;">Salaried Employees Retirement Plan of The Eastern Company (3)</div>
          </td>
          <td style="width: 19.4%; vertical-align: top; border-bottom: #000000 2px solid;">
            <div style="text-align: center; font-size: 8pt;">43</div>
          </td>
          <td style="width: 20.81%; vertical-align: bottom; border-bottom: 2px solid rgb(0, 0, 0); text-align: center;">
            <div style="font-family: 'Times New Roman',Times,serif; font-size: 8pt;">$2,057,634</div>
          </td>
          <td style="width: 10.64%; vertical-align: top; border-bottom: #000000 2px solid;">
            <div style="text-align: center; font-size: 8pt;">-</div>
          </td>
        </tr>

    </table>
    <div><br>
    </div>
    <div>
      <table cellspacing="0" cellpadding="0" style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; width: 100%; text-align: left; color: #000000;" class="DSPFListTable" id="ze7f0932672864e2ba4ad64205d253e17">

          <tr>
            <td style="width: 58.5pt; vertical-align: top; align: right;">
              <div style="margin-left: 36pt; font-size: 8pt;">(1)</div>
            </td>
            <td style="width: auto; vertical-align: top;">
              <div style="text-align: justify; font-size: 8pt;">Present value is determined by reference to the Pri-2012 Scale MP 2019 mortality table and an interest rate of 3.18%.</div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table cellspacing="0" cellpadding="0" style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; width: 100%; text-align: left; color: #000000;" class="DSPFListTable" id="z58d0c1bfc37b496a8e0d4a5f32f8d867">

          <tr>
            <td style="width: 58.5pt; vertical-align: top; align: right;">
              <div style="margin-left: 36pt; font-size: 8pt;">(2)</div>
            </td>
            <td style="width: auto; vertical-align: top;">
              <div style="text-align: justify; font-size: 8pt;">The defined benefit plan was frozen before Mr. Vlak had accrued any benefits under the plan.</div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table cellspacing="0" cellpadding="0" style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; width: 100%; text-align: left; color: #000000;" class="DSPFListTable" id="z9ce83491244e4d18ae316ba3e33cb559">

          <tr>
            <td style="width: 58.5pt; vertical-align: top; align: right;">
              <div style="margin-left: 36pt; font-size: 8pt;">(3)</div>
            </td>
            <td style="width: auto; vertical-align: top;">
              <div style="text-align: justify; font-size: 8pt;">Under the defined benefit plan, Mr. Sullivan is eligible for retirement.</div>
            </td>
          </tr>

      </table>
    </div>
    <div style="clear: both; margin-top: 10pt; margin-bottom: 10pt;" id="DSPFPageBreakArea">
      <div style="text-align: center;" id="DSPFPageNumberArea"><font style="font-size: 8pt; font-weight: normal; font-style: normal; font-family: 'Times New Roman',Times,serif;" id="DSPFPageNumber">25</font></div>
      <div style="page-break-after:always;" id="DSPFPageBreak">
        <hr noshade="noshade" style="margin: 4px 0px; width: 100%; border-width: 0; height: 2px; color: #000000; background-color: #000000; clear: both;"></div>
    </div>
    <div><br>
    </div>
    <div><br>
    </div>
    <div><br>
    </div>
    <div style="text-align: center; font-weight: bold;">COMPENSATION COMMITTEE REPORT</div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 36pt;">We, the Compensation Committee of the Board of Directors of the Company, have reviewed and discussed the Compensation Discussion and Analysis set forth above with management and, based on such review
      and discussions, have recommended to the Board of Directors that the Compensation Discussion and Analysis be included in this proxy statement and, through incorporation by reference to this proxy statement, in the Company&#8217;s Annual Report on Form 10-K
      for the fiscal year ended December 28, 2019.</div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 27pt;">Compensation Committee:</div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 27pt;">Michael A. McManus, Chairman</div>
    <div><font class="HorizontalTab" style="width: 9pt; font-size: 1px; display: inline-block;">&#160;</font><font class="HorizontalTab" style="width: 9pt; font-size: 1px; display: inline-block;"> </font><font class="HorizontalTab" style="width: 9pt; font-size: 1px; display: inline-block;">&#160;</font>Charles W. Henry</div>
    <div><font class="HorizontalTab" style="width: 9pt; font-size: 1px; display: inline-block;">&#160;</font><font class="HorizontalTab" style="width: 9pt; font-size: 1px; display: inline-block;">&#160;</font><font class="HorizontalTab" style="width: 9pt; font-size: 1px; display: inline-block;">&#160;</font>James A. Mitarotonda</div>
    <div style="text-indent: 27pt;">Peggy B. Scott</div>
    <div><br>
    </div>
    <div><br>
    </div>
    <div><br>
    </div>
    <div><br>
    </div>
    <div style="text-align: center; text-indent: -10pt; margin-left: 10pt; font-weight: bold;">COMPENSATION COMMITTEE INTERLOCKS AND INSIDER PARTICIPATION</div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 36pt;">During the 2019 fiscal year, no member of the Compensation Committee was, or had previously been, an officer or employee of the Company or its subsidiaries or had any direct or indirect material
      interest in a transaction with the Company or in a business relationship with the Company that would require disclosure under the applicable rules of the Securities and Exchange Commission. In addition, no interlocking relationship existed between
      any member of the Compensation Committee</div>
    <div style="text-align: justify;">or an executive officer of the Company, on the one hand, and any member of the compensation committee (or committee performing equivalent functions, or the full Board) or an executive officer of any other entity, on
      the other hand.</div>
    <div style="clear: both; margin-top: 10pt; margin-bottom: 10pt;" id="DSPFPageBreakArea">
      <div style="text-align: center;" id="DSPFPageNumberArea"><font style="font-size: 8pt; font-weight: normal; font-style: normal; font-family: 'Times New Roman',Times,serif;" id="DSPFPageNumber">26</font></div>
      <div style="page-break-after:always;" id="DSPFPageBreak">
        <hr noshade="noshade" style="margin: 4px 0px; width: 100%; border-width: 0; height: 2px; color: #000000; background-color: #000000; clear: both;"></div>
    </div>
    <div><br>
    </div>
    <div><br>
    </div>
    <div style="text-align: center; font-weight: bold;">EXECUTIVE COMPENSATION</div>
    <div><br>
    </div>
    <div style="background-color: #FFFFFF;">
      <div style="text-indent: 36pt;">This section of the proxy statement explains our compensation program for our principal executive officer and our other most highly-compensated executive officer, whom we refer to collectively in this proxy statement
        as &#8220;our named executive officers.&#8221;</div>
    </div>
    <div style="background-color: #FFFFFF;">
      <div><br>
      </div>
    </div>
    <div style="background-color: #FFFFFF;">
      <div><br>
      </div>
    </div>
    <div style="text-align: center; font-weight: bold;">Summary Compensation Table</div>
    <div><br>
    </div>
    <div style="background-color: #FFFFFF;">
      <div style="text-indent: 36pt;">The table below summarizes the total compensation paid or earned by each of the Company&#8217;s named executive officers for the fiscal years ended December 29, 2018 and December 28, 2019.</div>
    </div>
    <div><br>
    </div>
    <div><br>
    </div>
    <table cellspacing="0" cellpadding="0" style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; width: 100%; text-align: left; color: #000000;" id="z560cc707a731486c884dfb9e0d8e47f3">

        <tr>
          <td style="width: 19.31%; vertical-align: bottom; border-bottom: #000000 2px solid;">
            <div style="font-size: 8pt; font-weight: bold;">Name and Principal</div>
            <div style="font-size: 8pt; font-weight: bold;">Position</div>
          </td>
          <td style="width: 5.89%; vertical-align: bottom; border-bottom: #000000 2px solid;">
            <div style="font-size: 8pt; font-weight: bold;">Year</div>
          </td>
          <td style="width: 8.42%; vertical-align: bottom; border-bottom: 2px solid rgb(0, 0, 0); text-align: center;">
            <div style="font-family: 'Times New Roman',Times,serif; font-size: 8pt; font-weight: bold;">Salary</div>
            <div style="font-family: 'Times New Roman',Times,serif; font-size: 8pt; font-weight: bold;">&#160;($) (1)</div>
          </td>
          <td style="width: 8.42%; vertical-align: bottom; border-bottom: #000000 2px solid;">
            <div style="text-align: center; font-size: 8pt; font-weight: bold;">Bonus</div>
            <div style="text-align: center; font-size: 8pt; font-weight: bold;">&#160;($) (2)</div>
          </td>
          <td style="width: 7.58%; vertical-align: bottom; border-bottom: #000000 2px solid;">
            <div style="text-align: center; font-size: 8pt; font-weight: bold;">Stock</div>
            <div style="text-align: center; font-size: 8pt; font-weight: bold;">Awards</div>
            <div style="text-align: center; font-size: 8pt; font-weight: bold;">($) (3)</div>
          </td>
          <td style="width: 8.42%; vertical-align: bottom; border-bottom: 2px solid rgb(0, 0, 0); text-align: center;">
            <div style="font-family: 'Times New Roman',Times,serif; font-size: 8pt; font-weight: bold;">Option</div>
            <div style="font-family: 'Times New Roman',Times,serif; font-size: 8pt; font-weight: bold;">Awards</div>
            <div style="font-family: 'Times New Roman',Times,serif; font-size: 8pt; font-weight: bold;">($) (4)</div>
          </td>
          <td style="width: 12.03%; vertical-align: bottom; border-bottom: #000000 2px solid;">
            <div style="text-align: center; font-size: 8pt; font-weight: bold;">Non-Equity</div>
            <div style="text-align: center; font-size: 8pt; font-weight: bold;">Incentive Plan</div>
            <div style="text-align: center; font-size: 8pt; font-weight: bold;">Compensation</div>
            <div style="text-align: center; font-size: 8pt; font-weight: bold;">($) (5)</div>
          </td>
          <td style="width: 11.78%; vertical-align: bottom; border-bottom: #000000 2px solid;">
            <div style="text-align: center; font-size: 8pt; font-weight: bold;">Change in</div>
            <div style="text-align: center; font-size: 8pt; font-weight: bold;">Pension Value</div>
            <div style="text-align: center; font-size: 8pt; font-weight: bold;">and Non-</div>
            <div style="text-align: center; font-size: 8pt; font-weight: bold;">Qualified Deferred Compensation Earnings</div>
            <div style="text-align: center; font-size: 8pt; font-weight: bold;">&#160;($) (6)</div>
          </td>
          <td style="width: 8.66%; vertical-align: bottom; border-bottom: #000000 2px solid;">
            <div style="text-align: center; font-size: 8pt; font-weight: bold;">All Other</div>
            <div style="text-align: center; font-size: 8pt; font-weight: bold;">Compen-</div>
            <div style="text-align: center; font-size: 8pt; font-weight: bold;">sation</div>
            <div style="text-align: center; font-size: 8pt; font-weight: bold;">($) (7)</div>
          </td>
          <td style="width: 9.5%; vertical-align: bottom; border-bottom: #000000 2px solid;">
            <div style="text-align: center; font-size: 8pt; font-weight: bold;">Total</div>
            <div style="text-align: center; font-size: 8pt; font-weight: bold;">($)</div>
          </td>
        </tr>
        <tr>
          <td style="width: 19.31%; vertical-align: top; border-bottom: #000000 2px solid;">
            <div style="font-size: 8pt;"><font style="font-weight: bold;">August M. Vlak, </font>53 (8)</div>
            <div style="font-size: 8pt;">President and CEO</div>
          </td>
          <td style="width: 5.89%; vertical-align: top; border-bottom: #000000 2px solid;">
            <div style="text-align: justify; font-size: 8pt;">2019</div>
            <div style="text-align: justify; font-size: 8pt;">2018</div>
          </td>
          <td style="width: 8.42%; vertical-align: bottom; border-bottom: 2px solid rgb(0, 0, 0); text-align: center;">
            <div style="font-family: 'Times New Roman',Times,serif; font-size: 8pt;">$ 461,250</div>
            <div style="font-family: 'Times New Roman',Times,serif; font-size: 8pt;">&#160;&#160;&#160;450,000</div>
          </td>
          <td style="width: 8.42%; vertical-align: top; border-bottom: #000000 2px solid;">
            <div style="text-align: center; font-size: 8pt;">$&#160; &#160; &#160; &#160; &#160; -</div>
            <div style="text-align: center; font-size: 8pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;-</div>
          </td>
          <td style="width: 7.58%; vertical-align: top; border-bottom: #000000 2px solid;">&#160;</td>
          <td style="width: 8.42%; vertical-align: bottom; border-bottom: 2px solid rgb(0, 0, 0); text-align: center;">
            <div style="font-family: 'Times New Roman',Times,serif; font-size: 8pt;">$&#160; 78,000</div>
            <div style="font-family: 'Times New Roman',Times,serif; font-size: 8pt;">&#160;&#160;124,000</div>
          </td>
          <td style="width: 12.03%; vertical-align: top; border-bottom: #000000 2px solid;">
            <div style="text-align: center; font-size: 8pt;">$&#160; 341,100</div>
            <div style="text-align: center; font-size: 8pt;">&#160;&#160;&#160;563,252</div>
          </td>
          <td style="width: 11.78%; vertical-align: top; border-bottom: #000000 2px solid;">
            <div style="text-align: center; font-size: 8pt;">$&#160; &#160; &#160; &#160; &#160;&#160; -</div>
            <div style="text-align: center; font-size: 8pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;-</div>
          </td>
          <td style="width: 8.66%; vertical-align: top; border-bottom: #000000 2px solid;">
            <div style="text-align: center; font-size: 8pt;">$ 21,796</div>
            <div style="text-align: center; font-size: 8pt;">&#160;&#160;&#160;21,229</div>
          </td>
          <td style="width: 9.5%; vertical-align: top; border-bottom: #000000 2px solid;">
            <div style="text-align: center; font-size: 8pt;">$&#160; 902,146</div>
            <div style="text-align: center; font-size: 8pt;">&#160;&#160;1,158,481</div>
          </td>
        </tr>
        <tr>
          <td style="width: 19.31%; vertical-align: top; border-bottom: #000000 2px solid;">
            <div style="font-size: 8pt;"><font style="font-weight: bold;">John L. Sullivan III</font>, 66<br>
              Vice President and CFO (9)</div>
          </td>
          <td style="width: 5.89%; vertical-align: top; border-bottom: #000000 2px solid;">
            <div style="text-align: justify; font-size: 8pt;">2019</div>
            <div style="text-align: justify; font-size: 8pt;">2018</div>
          </td>
          <td style="width: 8.42%; vertical-align: bottom; border-bottom: 2px solid rgb(0, 0, 0); text-align: center;">
            <div style="font-family: 'Times New Roman',Times,serif; font-size: 8pt;">&#160;&#160;&#160;333,000</div>
            <div style="font-family: 'Times New Roman',Times,serif; font-size: 8pt;">&#160;&#160;&#160;323,500</div>
          </td>
          <td style="width: 8.42%; vertical-align: top; border-bottom: #000000 2px solid;">
            <div style="text-align: center; font-size: 8pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;-</div>
            <div style="text-align: center; font-size: 8pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;-</div>
          </td>
          <td style="width: 7.58%; vertical-align: top; border-bottom: #000000 2px solid;">&#160;</td>
          <td style="width: 8.42%; vertical-align: bottom; border-bottom: 2px solid rgb(0, 0, 0); text-align: center;">
            <div style="font-family: 'Times New Roman',Times,serif; font-size: 8pt;">&#160;&#160;&#160;33,000</div>
            <div style="font-family: 'Times New Roman',Times,serif; font-size: 8pt;">&#160;&#160;&#160;62,000</div>
          </td>
          <td style="width: 12.03%; vertical-align: top; border-bottom: #000000 2px solid;">
            <div style="text-align: center; font-size: 8pt;">&#160;&#160;&#160;&#160;&#160;99,999</div>
            <div style="text-align: center; font-size: 8pt;">&#160;&#160;&#160;148,605</div>
          </td>
          <td style="width: 11.78%; vertical-align: top; border-bottom: #000000 2px solid;">
            <div style="text-align: center; font-size: 8pt;">&#160;&#160;&#160;325,872</div>
            <div style="text-align: center; font-size: 8pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;620</div>
          </td>
          <td style="width: 8.66%; vertical-align: top; border-bottom: #000000 2px solid;">
            <div style="text-align: center; font-size: 8pt;">&#160;&#160;&#160;39,170</div>
            <div style="text-align: center; font-size: 8pt;">&#160;&#160;&#160;40,340</div>
          </td>
          <td style="width: 9.5%; vertical-align: top; border-bottom: #000000 2px solid;">
            <div style="text-align: center; font-size: 8pt;">&#160;&#160;&#160;&#160;&#160;831,041</div>
            <div style="text-align: center; font-size: 8pt;">&#160;&#160;&#160;&#160;&#160;575,065</div>
          </td>
        </tr>

    </table>
    <div><br>
    </div>
    <div style="text-align: justify; margin-bottom: 5pt;">
      <div>
        <table cellspacing="0" cellpadding="0" style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; width: 100%; text-align: left; color: #000000;" class="DSPFListTable" id="zdebfba4eb0bc4521bddccaa7101583b1">

            <tr>
              <td style="width: 18pt;"><br>
              </td>
              <td style="width: 18pt; vertical-align: top; align: right; font-size: 8pt;">(1)</td>
              <td style="width: auto; vertical-align: top; text-align: justify;">
                <div style="font-size: 8pt;">The 2019 and 2018 fiscal years each consisted of 52 weeks.</div>
              </td>
            </tr>

        </table>
      </div>
    </div>
    <div style="text-align: justify; margin-bottom: 5pt;">
      <div>
        <table cellspacing="0" cellpadding="0" style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; width: 100%; text-align: left; color: #000000;" class="DSPFListTable" id="z965668a829244e288b62f6b0328a5155">

            <tr>
              <td style="width: 18pt;"><br>
              </td>
              <td style="width: 18pt; vertical-align: top; align: right; font-size: 8pt;">(2)</td>
              <td style="width: auto; vertical-align: top; text-align: justify;">
                <div style="font-size: 8pt;">Amounts shown were earned in the applicable fiscal year and paid in the subsequent year to the named executive officers under the Company&#8217;s Long-Term Incentive Plan to purchase equity on the open market.</div>
              </td>
            </tr>

        </table>
      </div>
    </div>
    <div style="text-align: justify; margin-bottom: 5pt;">
      <div>
        <table cellspacing="0" cellpadding="0" style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; width: 100%; text-align: left; color: #000000;" class="DSPFListTable" id="z1be1d00c5136430e94fd1c5122b92f0a">

            <tr>
              <td style="width: 18pt;"><br>
              </td>
              <td style="width: 18pt; vertical-align: top; align: right; font-size: 8pt;">(3)</td>
              <td style="width: auto; vertical-align: top; text-align: justify;">
                <div style="font-size: 8pt;">There were no stock awards granted by the Company to the named executive officers in 2019 or 2018.</div>
              </td>
            </tr>

        </table>
      </div>
    </div>
    <div style="text-align: justify; margin-bottom: 5pt;">
      <div>
        <table cellspacing="0" cellpadding="0" style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; width: 100%; text-align: left; color: #000000;" class="DSPFListTable" id="z15d5c1d8c7c4447198f0fa11960d695e">

            <tr>
              <td style="width: 18pt;"><br>
              </td>
              <td style="width: 18pt; vertical-align: top; align: right; font-size: 8pt;">(4)</td>
              <td style="width: auto; vertical-align: top; text-align: justify;">
                <div style="font-size: 8pt;">Stock appreciation rights (SAR&#8217;s) were granted on February 7, 2018 and February 25, 2019.&#160; The fair value of SAR&#8217;s granted for Mr. Vlak&#8217;s is $124,000 and 78,000, respectively and for Mr. Sullivan $62,000 and
                  33,000, respectively. The fair value was determined on the grant date using the Black-Scholes Model.</div>
              </td>
            </tr>

        </table>
      </div>
    </div>
    <div style="text-align: justify; margin-bottom: 5pt;">
      <div>
        <table cellspacing="0" cellpadding="0" style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; width: 100%; text-align: left; color: #000000;" class="DSPFListTable" id="z50a51f18792c4709bed3d37eab1af977">

            <tr>
              <td style="width: 18pt;"><br>
              </td>
              <td style="width: 18pt; vertical-align: top; align: right; font-size: 8pt;">(5)</td>
              <td style="width: auto; vertical-align: top; text-align: justify;">
                <div style="font-size: 8pt;">Amounts shown were earned in the applicable year and paid in the subsequent year under the Company&#8217;s short-term incentive plan. Mr. Vlak earned a bonus for 2019 in the amount of $341,100 and Mr. Sullivan earned
                  a bonus for 2019 in the amount of $99,999.</div>
              </td>
            </tr>

        </table>
      </div>
    </div>
    <div style="text-align: justify; margin-bottom: 5pt;">
      <div>
        <table cellspacing="0" cellpadding="0" style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; width: 100%; text-align: left; color: #000000;" class="DSPFListTable" id="z404938bb552e4026b932d5488ea16b2d">

            <tr>
              <td style="width: 18pt;"><br>
              </td>
              <td style="width: 18pt; vertical-align: top; align: right; font-size: 8pt;">(6)</td>
              <td style="width: auto; vertical-align: top; text-align: justify;">
                <div style="font-size: 8pt;">Amounts shown reflect the aggregate change in the actuarial present value of each named executive officer&#8217;s accumulated benefit under all defined benefit plans, including supplemental plans, during each fiscal
                  year. For Mr. Sullivan, accruals under the qualified defined benefit pension plan equaled $325,872 for 2019 and $620 for 2018.</div>
              </td>
            </tr>

        </table>
      </div>
    </div>
    <div style="text-align: justify; margin-bottom: 5pt;">
      <div>
        <table cellspacing="0" cellpadding="0" style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; width: 100%; text-align: left; color: #000000;" class="DSPFListTable" id="z75caca6fd62845ea87ea99653a62ebe2">

            <tr>
              <td style="width: 18pt;"><br>
              </td>
              <td style="width: 18pt; vertical-align: top; align: right; font-size: 8pt;">(7)</td>
              <td style="width: auto; vertical-align: top; text-align: justify;">
                <div style="font-size: 8pt;">Included in this column are Company 401(k) plan contributions (including matching contributions, transitional credits and profit sharing contributions), the cost of the use of a company-owned vehicle, company
                  paid term life insurance premiums, the value of group term life insurance in excess of $50,000, and life insurance under the Company&#8217;s defined benefit plan. Company 401(k) plan contributions (including matching contributions, transitional
                  credits and profit sharing contributions) for Mr. Vlak equal $16,800 for 2019 and $16,350 for 2018 and for Mr. Sullivan equal $28,000 for 2019 and $27,150 for 2018. The cost of the use of a company-owned vehicle for Mr. Sullivan equals
                  $3,600 for 2019 and $5,829 for 2018. Company paid term life insurance premiums for Mr. Vlak equal $3,804 for 2019 and $3,720 for 2018 and for Mr. Sullivan equal $2,952 for 2019 and $2,880 for 2018. The value of group term life insurance
                  in excess of $50,000 for Mr. Vlak equals $1,192 for 2019 and $1,159 for 2018; and for Mr. Sullivan equals $4,618 for 2019 and $4,481 for 2018.</div>
              </td>
            </tr>

        </table>
      </div>
    </div>
    <div style="text-align: justify; margin-bottom: 5pt;">
      <div>
        <table cellspacing="0" cellpadding="0" style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; width: 100%; text-align: left; color: #000000;" class="DSPFListTable" id="z4452fc546fd041c6ad8d81e0f37f72c9">

            <tr>
              <td style="width: 18pt;"><br>
              </td>
              <td style="width: 18pt; vertical-align: top; align: right; font-size: 8pt;">(8)</td>
              <td style="width: auto; vertical-align: top; text-align: justify;">
                <div style="font-size: 8pt;">Mr. Vlak was appointed President and Chief Executive Officer on January 1, 2016.</div>
              </td>
            </tr>

        </table>
      </div>
    </div>
    <div style="text-align: justify; margin-bottom: 5pt;">
      <div>
        <table cellspacing="0" cellpadding="0" style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; width: 100%; text-align: left; color: #000000;" class="DSPFListTable" id="ze26827d544f24fb8b6c2790791c2e455">

            <tr>
              <td style="width: 18pt;"><br>
              </td>
              <td style="width: 18pt; vertical-align: top; align: right; font-size: 8pt;">(9)</td>
              <td style="width: auto; vertical-align: top; text-align: justify;">
                <div style="font-size: 8pt;">Mr. Sullivan was appointed Chief Financial Officer on December 13, 2006. Prior to that, he was the Vice President, Treasurer and Secretary of the Company.</div>
              </td>
            </tr>

        </table>
      </div>
    </div>
    <div style="margin-bottom: 8pt;"><br>
    </div>
    <div style="clear: both; margin-top: 10pt; margin-bottom: 10pt;" id="DSPFPageBreakArea">
      <div style="text-align: center;" id="DSPFPageNumberArea"><font style="font-size: 8pt; font-weight: normal; font-style: normal; font-family: 'Times New Roman',Times,serif;" id="DSPFPageNumber">27</font></div>
      <div style="page-break-after:always;" id="DSPFPageBreak">
        <hr noshade="noshade" style="margin: 4px 0px; width: 100%; border-width: 0; height: 2px; color: #000000; background-color: #000000; clear: both;"></div>
    </div>
    <div style="margin-bottom: 8pt;"><br>
    </div>
    <div style="margin-bottom: 8pt;"><br>
    </div>
    <div style="text-align: center; margin-bottom: 8pt; font-weight: bold;">STOCK BASED AWARDS</div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 36pt;">Stock-based awards in 2019 were made pursuant to The Eastern Company 2010 Executive Stock Incentive Plan (the &#8220;2010 Plan&#8221;) The 2010 Plan was approved by shareholders on April 28, 2010. The 2010 Plan
      authorized the grant of incentive stock options and non-qualified stock options to purchase Common Shares, the grant of shares of restricted stock, and the grant of other stock-based awards (such as stock appreciation rights (&#8220;SARs&#8221;)).&#160; The
      Compensation Committee determined the terms and conditions of the awards granted under the 2010 Plan, subject to the terms of the 2010 Plan.&#160; Awards were permitted to be granted to salaried officers and other key employees of the Company, whether or
      not such employees were also serving as directors of the Company.&#160; The 2010 Plan also provided for the grant of nonqualified stock options to non-employee directors of the Company.&#160; No further grants may be made under the 2010 Plan, which expired by
      its terms on February 9, 2020.</div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 36pt;">The purchase price of the Common Shares subject to each incentive stock option granted under the 2010 Plan may not be less than the fair market value of the Common Shares on the date of grant. The
      purchase price of Common Shares subject to non-qualified stock options granted under the 2010 Plan, and the price (if any) which must be paid to acquire a share of restricted stock granted under the 2010 Plan, was set by the Compensation Committee.
      All non-qualified stock options granted to date under prior stock option plans have required a purchase price equal to 100% of the fair market value of the Common Shares on the date of the grant.</div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 36pt;">Incentive stock options generally were not granted under the 2010 Plan to any employee who owned more than ten percent (10%) of the Company&#8217;s voting stock at the time of such grant.&#160; Incentive stock
      options must be exercised within ten years of the date of grant.&#160; Non-qualified stock options must be exercised within the period set forth in the 2010 Plan or, if the 2010 Plan permits, within the period established by the Compensation Committee.&#160;
      Moreover, options may not be exercised more than three months after termination of employment or termination of service as a director.&#160; However, in the case of death or disability, the option may be exercised within one year after death or disability
      by the estate of such named executive officer.&#160; The three month period is also extended to one year for an optionee who terminates employment or terminates service as a director at or after reaching age sixty-five (65).</div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 36pt;"><br>
    </div>
    <div><br>
    </div>
    <div><br>
    </div>
    <div><br>
    </div>
    <div style="clear: both; margin-top: 10pt; margin-bottom: 10pt;" id="DSPFPageBreakArea">
      <div style="text-align: center;" id="DSPFPageNumberArea"><font style="font-size: 8pt; font-weight: normal; font-style: normal; font-family: 'Times New Roman',Times,serif;" id="DSPFPageNumber">28</font></div>
      <div style="page-break-after:always;" id="DSPFPageBreak">
        <hr noshade="noshade" style="margin: 4px 0px; width: 100%; border-width: 0; height: 2px; color: #000000; background-color: #000000; clear: both;"></div>
    </div>
    <div><br>
    </div>
    <div><br>
    </div>
    <div style="text-align: center; text-indent: -14.4pt; margin-left: 14.4pt; font-weight: bold;">OPTIONS EXERCISED IN FISCAL 2019</div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 36pt;">The named executive officers did not exercise any stock options or stock appreciation rights during the fiscal year ended December 28, 2019, and the named executive officers did not own any shares of
      restricted stock which vested during the fiscal year ended December 28, 2019.</div>
    <div><br>
    </div>
    <div><br>
    </div>
    <div style="text-align: center; font-weight: bold;">OUTSTANDING EQUITY AWARDS AT FISCAL YEAR-END</div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 36pt;">The following table displays the units of unvested stock appreciation rights held by each of the named executive officers at the end of fiscal year 2019. There have been no stock options granted by
      the Company for the named executive officers and there are no outstanding stock options.</div>
    <div><br>
    </div>
    <table cellspacing="0" cellpadding="0" style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; width: 100%; text-align: left; color: #000000;" id="z6650bde5001b4224a1a31545b3b20b27">

        <tr>
          <td style="width: 19.68%; vertical-align: top; background-color: #FFFFFF;">&#160;</td>
          <td style="width: 2.91%; vertical-align: top; background-color: #FFFFFF;">&#160;</td>
          <td colspan="5" style="width: 77.41%; vertical-align: top; background-color: #FFFFFF; border-bottom: 2px solid #000000;">
            <div>
              <div style="text-align: center; text-indent: -14.4pt; margin-left: 14.4pt;">Option Awards</div>
            </div>
          </td>
        </tr>
        <tr>
          <td style="width: 19.68%; vertical-align: bottom; background-color: #FFFFFF; border-bottom: 2px solid black;">
            <div style="text-indent: -14.4pt; margin-left: 14.4pt;">Name</div>
          </td>
          <td style="width: 2.91%; vertical-align: bottom; background-color: #FFFFFF;">&#160;</td>
          <td style="width: 15.87%; vertical-align: bottom; background-color: #FFFFFF; border-bottom: 2px solid black;">
            <div style="text-align: center;">Number of</div>
            <div style="text-align: center;">Securities</div>
            <div style="text-align: center;">Underlying Unexercised Options (#)<br>
              Exercisable</div>
          </td>
          <td style="width: 16.38%; vertical-align: bottom; background-color: #FFFFFF; border-bottom: 2px solid black;">
            <div style="text-align: center;">Number of Securities Underlying Unexercised Options (#)<br>
              Unexercisable</div>
          </td>
          <td style="width: 19.99%; vertical-align: bottom; background-color: #FFFFFF; border-bottom: 2px solid black;">
            <div style="text-align: center;">Equity Incentive</div>
            <div style="text-align: center;">Plan Awards:</div>
            <div style="text-align: center;">Number of Securities Underlying Unexercised Unearned Options (#)</div>
          </td>
          <td style="width: 11.63%; vertical-align: bottom; background-color: #FFFFFF; border-bottom: 2px solid black;">
            <div style="text-align: center;">Option Exercise</div>
            <div style="text-align: center; text-indent: -14.4pt; margin-left: 14.4pt;">Price ($)</div>
          </td>
          <td style="width: 13.53%; vertical-align: bottom; background-color: #FFFFFF; border-bottom: 2px solid black;">
            <div style="text-align: center;">Option</div>
            <div style="text-align: center;">Expiration</div>
            <div style="text-align: center; text-indent: -14.4pt; margin-left: 14.4pt;">Date</div>
          </td>
        </tr>
        <tr>
          <td style="width: 19.68%; vertical-align: top; background-color: #FFFFFF;">&#160;</td>
          <td style="width: 2.91%; vertical-align: top; background-color: #FFFFFF;">&#160;</td>
          <td style="width: 15.87%; vertical-align: top; background-color: #FFFFFF;">&#160;</td>
          <td style="width: 16.38%; vertical-align: top; background-color: #FFFFFF;">&#160;</td>
          <td style="width: 19.99%; vertical-align: top; background-color: #FFFFFF;">&#160;</td>
          <td style="width: 11.63%; vertical-align: top; background-color: #FFFFFF;">&#160;</td>
          <td style="width: 13.53%; vertical-align: top; background-color: #FFFFFF;">&#160;</td>
        </tr>
        <tr>
          <td style="width: 19.68%; vertical-align: top; background-color: #FFFFFF;">
            <div style="text-indent: -14.4pt; margin-left: 14.4pt;">August M. Vlak</div>
          </td>
          <td style="width: 2.91%; vertical-align: top; background-color: #FFFFFF;">&#160;</td>
          <td style="width: 15.87%; vertical-align: top; background-color: #FFFFFF;">
            <div style="text-align: center; text-indent: -14.4pt; margin-left: 14.4pt;">13,334</div>
          </td>
          <td style="width: 16.38%; vertical-align: top; background-color: #FFFFFF;">
            <div style="text-align: center; text-indent: -14.4pt; margin-left: 14.4pt;">3,333</div>
          </td>
          <td style="width: 19.99%; vertical-align: top; background-color: #FFFFFF;">
            <div style="text-align: center; text-indent: -14.4pt; margin-left: 14.4pt;">-</div>
          </td>
          <td style="width: 11.63%; vertical-align: top; background-color: #FFFFFF;">
            <div style="text-align: center; text-indent: -14.4pt; margin-left: 14.4pt;">$19.10</div>
          </td>
          <td style="width: 13.53%; vertical-align: top; background-color: #FFFFFF;">
            <div style="text-align: center; text-indent: -14.4pt; margin-left: 14.4pt;">03/02/2022</div>
          </td>
        </tr>
        <tr>
          <td style="width: 19.68%; vertical-align: top; background-color: #FFFFFF;">&#160;</td>
          <td style="width: 2.91%; vertical-align: top; background-color: #FFFFFF;">&#160;</td>
          <td style="width: 15.87%; vertical-align: top; background-color: #FFFFFF;">
            <div style="text-align: center; text-indent: -14.4pt; margin-left: 14.4pt;">-</div>
          </td>
          <td style="width: 16.38%; vertical-align: top; background-color: #FFFFFF;">
            <div style="text-align: center; text-indent: -14.4pt; margin-left: 14.4pt;">-</div>
          </td>
          <td style="width: 19.99%; vertical-align: top; background-color: #FFFFFF;">
            <div style="text-align: center; text-indent: -14.4pt; margin-left: 14.4pt;">20,000</div>
          </td>
          <td style="width: 11.63%; vertical-align: top; background-color: #FFFFFF;">
            <div style="text-align: center; text-indent: -14.4pt; margin-left: 14.4pt;">&#160;&#160;24.90</div>
          </td>
          <td style="width: 13.53%; vertical-align: top; background-color: #FFFFFF;">
            <div style="text-align: center; text-indent: -14.4pt; margin-left: 14.4pt;">02/07/2023</div>
          </td>
        </tr>
        <tr>
          <td style="width: 19.68%; vertical-align: top; background-color: #FFFFFF;">&#160;</td>
          <td style="width: 2.91%; vertical-align: top; background-color: #FFFFFF;">&#160;</td>
          <td style="width: 15.87%; vertical-align: top; background-color: #FFFFFF;">
            <div style="text-align: center; text-indent: -14.4pt; margin-left: 14.4pt;">-</div>
          </td>
          <td style="width: 16.38%; vertical-align: top; background-color: #FFFFFF;">
            <div style="text-align: center; text-indent: -14.4pt; margin-left: 14.4pt;">-</div>
          </td>
          <td style="width: 19.99%; vertical-align: top; background-color: #FFFFFF;">
            <div style="text-align: center; text-indent: -14.4pt; margin-left: 14.4pt;">12,000</div>
          </td>
          <td style="width: 11.63%; vertical-align: top; background-color: #FFFFFF;">
            <div style="text-align: center; text-indent: -14.4pt; margin-left: 14.4pt;">&#160;&#160;26.30</div>
          </td>
          <td style="width: 13.53%; vertical-align: top; background-color: #FFFFFF;">
            <div style="text-align: center; text-indent: -14.4pt; margin-left: 14.4pt;">02/25/2024</div>
          </td>
        </tr>
        <tr>
          <td style="width: 19.68%; vertical-align: top; background-color: #FFFFFF;">&#160;</td>
          <td style="width: 2.91%; vertical-align: top; background-color: #FFFFFF;">&#160;</td>
          <td style="width: 15.87%; vertical-align: top; background-color: #FFFFFF;">&#160;</td>
          <td style="width: 16.38%; vertical-align: top; background-color: #FFFFFF;">&#160;</td>
          <td style="width: 19.99%; vertical-align: top; background-color: #FFFFFF;">&#160;</td>
          <td style="width: 11.63%; vertical-align: top; background-color: #FFFFFF;">&#160;</td>
          <td style="width: 13.53%; vertical-align: top; background-color: #FFFFFF;">&#160;</td>
        </tr>
        <tr>
          <td style="width: 19.68%; vertical-align: top; background-color: #FFFFFF;">
            <div style="text-indent: -14.4pt; margin-left: 14.4pt;">John L. Sullivan, III</div>
          </td>
          <td style="width: 2.91%; vertical-align: top; background-color: #FFFFFF;">&#160;</td>
          <td style="width: 15.87%; vertical-align: top; background-color: #FFFFFF;">
            <div style="text-align: center; text-indent: -14.4pt; margin-left: 14.4pt;">&#160;&#160;6,667</div>
          </td>
          <td style="width: 16.38%; vertical-align: top; background-color: #FFFFFF;">
            <div style="text-align: center; text-indent: -14.4pt; margin-left: 14.4pt;">1,667</div>
          </td>
          <td style="width: 19.99%; vertical-align: top; background-color: #FFFFFF;">
            <div style="text-align: center; text-indent: -14.4pt; margin-left: 14.4pt;">-</div>
          </td>
          <td style="width: 11.63%; vertical-align: top; background-color: #FFFFFF;">
            <div style="text-align: center; text-indent: -14.4pt; margin-left: 14.4pt;">&#160;&#160;19.10</div>
          </td>
          <td style="width: 13.53%; vertical-align: top; background-color: #FFFFFF;">
            <div style="text-align: center; text-indent: -14.4pt; margin-left: 14.4pt;">03/02/2022</div>
          </td>
        </tr>
        <tr>
          <td style="width: 19.68%; vertical-align: top; background-color: #FFFFFF;">&#160;</td>
          <td style="width: 2.91%; vertical-align: top; background-color: #FFFFFF;">&#160;</td>
          <td style="width: 15.87%; vertical-align: top; background-color: #FFFFFF;">
            <div style="text-align: center; text-indent: -14.4pt; margin-left: 14.4pt;">-</div>
          </td>
          <td style="width: 16.38%; vertical-align: top; background-color: #FFFFFF;">
            <div style="text-align: center; text-indent: -14.4pt; margin-left: 14.4pt;">-</div>
          </td>
          <td style="width: 19.99%; vertical-align: top; background-color: #FFFFFF;">
            <div style="text-align: center; text-indent: -14.4pt; margin-left: 14.4pt;">10,000</div>
          </td>
          <td style="width: 11.63%; vertical-align: top; background-color: #FFFFFF;">
            <div style="text-align: center; text-indent: -14.4pt; margin-left: 14.4pt;">&#160;&#160;24.90</div>
          </td>
          <td style="width: 13.53%; vertical-align: top; background-color: #FFFFFF;">
            <div style="text-align: center; text-indent: -14.4pt; margin-left: 14.4pt;">02/07/2023</div>
          </td>
        </tr>
        <tr>
          <td style="width: 19.68%; vertical-align: top; background-color: #FFFFFF;">&#160;</td>
          <td style="width: 2.91%; vertical-align: top; background-color: #FFFFFF;">&#160;</td>
          <td style="width: 15.87%; vertical-align: top; background-color: #FFFFFF;">
            <div style="text-align: center; text-indent: -14.4pt; margin-left: 14.4pt;">-</div>
          </td>
          <td style="width: 16.38%; vertical-align: top; background-color: #FFFFFF;">
            <div style="text-align: center; text-indent: -14.4pt; margin-left: 14.4pt;">-</div>
          </td>
          <td style="width: 19.99%; vertical-align: top; background-color: #FFFFFF;">
            <div style="text-align: center; text-indent: -14.4pt; margin-left: 14.4pt;">&#160;&#160;5,000</div>
          </td>
          <td style="width: 11.63%; vertical-align: top; background-color: #FFFFFF;">
            <div style="text-align: center; text-indent: -14.4pt; margin-left: 14.4pt;">&#160;&#160;26.30</div>
          </td>
          <td style="width: 13.53%; vertical-align: top; background-color: #FFFFFF;">
            <div style="text-align: center; text-indent: -14.4pt; margin-left: 14.4pt;">02/25/2024</div>
          </td>
        </tr>

    </table>
    <div><br>
    </div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 36pt;">On March 2, 2017, the Compensation Committee granted stock appreciation rights under the 2010 Plan as follows:&#160; August M. Vlak &#8211; 20,000; and John L. Sullivan III &#8211; 10,000.&#160; The stock appreciation
      rights have an exercise price of $19.10 (equal to the fair market value of a Common Share on the date of grant), and will vest on a three-year schedule based on performance targets set by the Board and become exercisable on a graded schedule over a
      period of five years. The named executive officer must remain an employee of the Company on each applicable vesting date and the Company must meet certain performance targets for vesting of the stock appreciation rights based on the Company&#8217;s 2017,
      2018, and 2019 return on invested capital.</div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 36pt;">On February 7, 2018, the Compensation Committee granted stock appreciation rights under the 2010 Plan as follows:&#160; August M. Vlak &#8211; 20,000; and John L. Sullivan III &#8211; 10,000.&#160; The stock appreciation
      rights have an exercise price of $24.90 (equal to the fair market value of a Common Share on the date of grant), and will vest on February 1, 2021 based on performance targets set by Board. The stock appreciation rights become exercisable over a
      period of 5 years (provided that the named executive officer remains an employee of the Company on each applicable vesting date and the Company meets certain performance thresholds prescribed in the stock appreciation rights agreement).&#160; The
      performance target for vesting of the stock appreciation rights are based on the Company&#8217;s book value on February 1, 2021.</div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 36pt;">On February 25, 2019, the Compensation Committee affirmed the partial vesting of the stock appreciation rights granted in 2017, based on the Company&#8217;s actual 2018 return on invested capital. The
      Compensation Committee approved vesting of stock appreciation rights for the following named executive officers:&#160; August M. Vlak &#8211; 6,667; and John L. Sullivan III &#8211; 3,333 as of February 1, 2019.</div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 36pt;">On February 18, 2020, the Compensation Committee affirmed the partial vesting of the stock appreciation rights granted in 2017, based on the Company&#8217;s actual 2019 return on invested capital. The
      Compensation Committee approved vesting of stock appreciation rights for the following named executive officers:&#160; August M. Vlak &#8211; 3,333; and John L. Sullivan III &#8211; 1,667 as of February 1, 2020.</div>
    <div style="clear: both; margin-top: 10pt; margin-bottom: 10pt;" id="DSPFPageBreakArea">
      <div style="text-align: center;" id="DSPFPageNumberArea"><font style="font-size: 8pt; font-weight: normal; font-style: normal; font-family: 'Times New Roman',Times,serif;" id="DSPFPageNumber">29</font></div>
      <div style="page-break-after:always;" id="DSPFPageBreak">
        <hr noshade="noshade" style="margin: 4px 0px; width: 100%; border-width: 0; height: 2px; color: #000000; background-color: #000000; clear: both;"></div>
    </div>
    <div><br>
    </div>
    <div><br>
    </div>
    <div style="text-align: center; text-indent: 22.5pt; font-weight: bold;">TERMINATION OF EMPLOYMENT AND CHANGE IN CONTROL ARRANGEMENTS</div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: -58.5pt; margin-left: 58.5pt; font-style: italic;">Employment Agreement</div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 39.6pt;">On January 16, 2018, the Company entered into an amended and restated employment agreement (the &#8220;Amended and Restated Employment Agreement&#8221;) with August M. Vlak, the Company&#8217;s President and Chief
      Executive Officer. The Amended and Restated Employment Agreement supersedes the employment agreement executed on March 29, 2016 and was retroactively effective January 1, 2016. The initial term of the Amended and Restated Employment Agreement was
      from January 1, 2018 through December 31, 2018.&#160; However, the Amended and Restated Employment Agreement will be automatically renewed for additional one-year terms, unless either party provides notice of nonrenewal at least 60 days prior to the end
      of the term.&#160; The Amended and Restated Employment Agreement automatically renewed for a one-year term from January 1, 2019 through December 31, 2019, and has been automatically renewed for another one-year term from January 1, 2020 through December
      31, 2020. The Amended and Restated Employment Agreement sets forth Mr. Vlak&#8217;s employment duties, compensation and additional benefits, as well as certain noncompetition, nonsolicitation and nondisclosure covenants.</div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 36pt;">Under the terms of the Amended and Restated Employment Agreement, in the event of Mr. Vlak&#8217;s death, termination by the Company without cause, termination by Mr. Vlak for good reason or due to a
      constructive termination, or when certain requirements are met in the event of a change in control, the Company will pay Mr. Vlak (i) any accrued compensation, including earned but unpaid base salary, reimbursement for reasonable and necessary
      expenses, accrued but unused vacation pay, the unpaid portion of any earned annual bonus for the fiscal year preceding termination, a pro-rated portion of the actual bonus, and vested accrued employee benefits; (ii) an amount equal to one times Mr.
      Vlak&#8217;s annual base salary; and (iii) an amount equal to one times Mr. Vlak&#8217;s target annual bonus for the year of termination.&#160; However, the change in control benefits will be reduced to the extent necessary to avoid the applicability of Section 280G
      of the Internal Revenue Code. All payments by the Company are subject to the execution of a release and waiver.</div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 36pt; margin-bottom: 9pt;">The following table provides certain information regarding the benefits payable under the Amended and Restated Employment Agreement for Mr. Vlak. The payments under the change in
      control agreement are based on compensation received for the fiscal year ended December 28, 2019, assuming a change in control became effective December 28, 2019.</div>
    <div><br>
    </div>
    <table cellspacing="0" cellpadding="0" style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; width: 100%; text-align: left; color: #000000;" id="z9f6c487d0e544e5a8714b80c60e13647">

        <tr>
          <td style="width: 20%; vertical-align: top; border-width: 2px; border-style: solid; border-color: rgb(0, 0, 0) rgb(0, 0, 0) rgb(0, 0, 0) rgb(0, 0, 0);">&#160;</td>
          <td style="width: 17.4%; vertical-align: top; border-right: 2px solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0); border-top: 2px solid rgb(0, 0, 0);">&#160;</td>
          <td colspan="2" style="width: 29.09%; vertical-align: top; border-right: 2px solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0); border-top: 2px solid rgb(0, 0, 0);">
            <div style="text-align: center; font-size: 8pt; font-weight: bold;">Absent a change in control</div>
          </td>
          <td colspan="2" style="width: 33.51%; vertical-align: top; border-right: 2px solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0); border-top: 2px solid rgb(0, 0, 0);">
            <div style="text-align: center; font-size: 8pt; font-weight: bold;">Following a change in control</div>
          </td>
        </tr>
        <tr>
          <td style="width: 20%; vertical-align: top; border-right: 2px solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">&#160;</td>
          <td style="width: 17.4%; vertical-align: top; border-right: 2px solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0);">&#160;</td>
          <td style="width: 12.47%; vertical-align: top; border-right: 2px solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0);">
            <div style="text-align: center; font-size: 8pt; font-weight: bold;">Termination<br>
              For<br>
              Cause</div>
          </td>
          <td style="width: 16.62%; vertical-align: top; border-right: 2px solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0);">
            <div style="text-align: center; font-size: 8pt; font-weight: bold;">Termination<br>
              Without<br>
              Cause</div>
          </td>
          <td style="width: 16.62%; vertical-align: top; border-right: 2px solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0);">
            <div style="text-align: center; font-size: 8pt; font-weight: bold;">Termination<br>
              For<br>
              Cause</div>
          </td>
          <td style="width: 16.89%; vertical-align: top; border-right: 2px solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0);">
            <div style="text-align: center; font-size: 8pt; font-weight: bold;">Termination<br>
              Without<br>
              Cause</div>
          </td>
        </tr>
        <tr>
          <td style="width: 20%; vertical-align: top; border-right: 2px solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
            <div style="font-size: 8pt; font-weight: bold;">August M. Vlak</div>
          </td>
          <td style="width: 17.4%; vertical-align: middle; border-right: 2px solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0);">
            <div style="text-align: justify; text-indent: -8pt; margin-left: 8pt; font-size: 8pt;">Lump sum</div>
          </td>
          <td style="width: 12.47%; vertical-align: middle; border-right: 2px solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0);">
            <div style="text-align: center; font-size: 8pt;">-</div>
          </td>
          <td style="width: 16.62%; vertical-align: middle; border-right: 2px solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0);">
            <div style="text-align: center; font-size: 8pt;">$802,350</div>
          </td>
          <td style="width: 16.62%; vertical-align: middle; border-right: 2px solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0);">
            <div style="text-align: center; font-size: 8pt;">-</div>
          </td>
          <td style="width: 16.89%; vertical-align: middle; border-right: 2px solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0);">
            <div style="text-align: center; font-size: 8pt;">$802,350</div>
          </td>
        </tr>

    </table>
    <div><br>
    </div>
    <div><br>
    </div>
    <div><br>
    </div>
    <div style="text-align: center; font-weight: bold;">RISK ASSESSMENT OF COMPENSATION POLICIES AND PRACTICES</div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 36pt;">Management and the Compensation Committee have reviewed the existing incentive compensation programs in which executives who are not named executive officers participate, in order to establish that
      such programs do not create risks that are reasonably likely to have a material adverse effect on the Company. Incentive compensation programs exist at the Corporate Office and at the Company&#8217;s divisions, and no particular division carries a
      significant portion of the Company&#8217;s overall risk profile. Stock incentive awards were made in fiscal 2019 under the Company&#8217;s 2010 Executive Stock Incentive Plan and, if the 2020 Plan is approved at the Annual Meeting, will be available under the
      2020 Plan. These awards are determined based upon guidelines set by the Chief Executive Officer and are reviewed and approved by the Compensation Committee. The cash incentive compensation program for corporate executives is subject to performance
      parameters and dollar limitations approved by the Compensation Committee. Cash incentive programs at the Company divisions are based upon attainment of specific financial performance goals that are developed on a basis consistent with the division&#8217;s
      financial goals. These programs are approved by the Chief Executive Officer. In conclusion, management has determined that the existing incentive programs applicable to non-named executive officers and the Company&#8217;s 2010 Executive Stock Incentive
      Plan and the 2020 Plan do not create risks that are reasonably likely to have a material adverse effect on the Company.</div>
    <div><br>
    </div>
    <div style="clear: both; margin-top: 10pt; margin-bottom: 10pt;" id="DSPFPageBreakArea">
      <div style="text-align: center;" id="DSPFPageNumberArea"><font style="font-size: 8pt; font-weight: normal; font-style: normal; font-family: 'Times New Roman',Times,serif;" id="DSPFPageNumber">30</font></div>
      <div style="page-break-after:always;" id="DSPFPageBreak">
        <hr noshade="noshade" style="margin: 4px 0px; width: 100%; border-width: 0; height: 2px; color: #000000; background-color: #000000; clear: both;"></div>
    </div>
    <div><br>
    </div>
    <div style="margin-bottom: 6pt;"><br>
    </div>
    <div style="text-align: center; margin-bottom: 6pt; font-weight: bold;">ADDITIONAL INFORMATION</div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 36pt;">Any shareholder who intends to present a proposal at the 2021 annual meeting of shareholders and desires that it be included in the Company&#8217;s proxy materials must submit to the Company a copy of the
      proposal on or before November 5, 2020. Any shareholder who intends to present a proposal at the 2021 annual meeting of shareholders, but does not wish that the proposal be included in the Company&#8217;s proxy materials, must provide notice of the
      proposal to the Company in accordance with the terms of the Company&#8217;s Bylaws no earlier than January 29, 2021 and no later than February 28, 2021.</div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 36pt;">It is the Company&#8217;s policy to have the members of the Board attend the Annual Meeting, to the extent feasible. All of the members of the Board attended the 2019 annual meeting of shareholders.</div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 36pt;">If any shareholder wishes to send communications to the Board or to any member of the Board, he or she may do so by sending such communications to the Board or to the individual director in care of
      The Eastern Company, 112 Bridge Street, P.O. Box 460, Naugatuck, Connecticut 06770. All such communications will be delivered to the Board or to the individual director in strict confidence.</div>
    <div><br>
    </div>
    <div><br>
    </div>
    <div style="text-align: center; font-weight: bold;">FORM 10-K ANNUAL REPORT</div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 36pt;">A copy of the Company&#8217;s Annual Report on Form 10-K as filed with the SEC for the fiscal year ended December 28, 2019 will be furnished without exhibits to shareholders upon written request. Exhibits
      to the Form 10-K will be provided if so indicated. Direct all inquiries to Investor Relations, The Eastern Company, 112 Bridge Street, P.O. Box 460, Naugatuck, Connecticut 06770-0460. Form 10-K is also available on the Company&#8217;s website at <u>www.easterncompany.com</u>.</div>
    <div style="text-align: justify; text-indent: 36pt;"> <br>
    </div>
    <div style="clear: both; margin-top: 10pt; margin-bottom: 10pt;" id="DSPFPageBreakArea">
      <div style="text-align: center;" id="DSPFPageNumberArea"><font style="font-size: 8pt; font-weight: normal; font-style: normal; font-family: 'Times New Roman',Times,serif;" id="DSPFPageNumber">31</font></div>
      <div style="page-break-after: always;" id="DSPFPageBreak">
        <hr noshade="noshade" style="border-width: 0px; clear: both; margin: 4px 0px; width: 100%; height: 2px; color: #000000; background-color: #000000;"></div>
    </div>
    <!--PROfilePageNumberReset%Num%1%%%-->
    <div>
      <div style="font-size: 12pt; font-weight: bold;">&#8220;Exhibit A&#8221;</div>
      <div style="text-align: right; font-size: 12pt; font-weight: bold;">Adopted by the Board of Directors on February 19, 2020</div>
      <div style="text-align: right; font-size: 12pt; font-weight: bold;">Approved by the shareholders on [April 29], 2020</div>
      <div><br>
      </div>
      <div style="text-align: center; font-size: 12pt; font-weight: bold;">THE EASTERN COMPANY</div>
      <div style="text-align: center; margin-bottom: 12pt; font-size: 12pt; font-weight: bold;">2020 STOCK INCENTIVE PLAN</div>
      <div>
        <table cellspacing="0" cellpadding="0" id="z25de3c83d7b543b780a382c9e008c20c" class="DSPFListTable" style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin-bottom: 12pt; width: 100%; text-align: left; color: #000000;">

            <tr>
              <td style="width: 21pt; vertical-align: top; align: right;">
                <div style="margin-left: 3pt; margin-bottom: 12pt; font-size: 12pt;">1.</div>
              </td>
              <td style="width: auto; vertical-align: top;">
                <div style="text-align: justify; margin-bottom: 12pt; font-size: 12pt;"><u>Purpose</u>.</div>
              </td>
            </tr>

        </table>
      </div>
      <div style="margin-bottom: 12pt;"><br>
      </div>
      <div style="text-align: justify; text-indent: 36pt; margin-bottom: 12pt; font-size: 12pt;">The purpose of The Eastern Company 2020 Stock Incentive Plan (the &#8220;Plan&#8221;) is to promote the interests of The Eastern Company and its shareholders by providing
        a method whereby executives and other key employees of the Company may become owners of the Company&#8217;s common stock by the exercise of stock options or stock appreciation rights or the grant of shares of restricted stock or restricted stock units or
        other awards as permitted by the Plan, and thereby increase their proprietary interest in the Company&#8217;s business, encourage them to remain in the employ of the Company and increase their personal interest in its continued success and progress.&#160; In
        addition, another purpose of the Plan is to promote the interests of the Company by providing a method whereby non-employee directors of the Company may become owners of the Company&#8217;s common stock by the exercise of nonqualified stock options or
        the grant of shares of restricted stock or restricted stock units, or through the payment of their retainer fees and meeting fees in shares of the Company&#8217;s common stock, and thereby increase the proprietary interest of the non-employee directors
        in the Company&#8217;s business and in its continued success and progress, and will encourage qualified individuals to become members of the board of directors of the Company.</div>
      <div style="text-align: justify; margin-bottom: 12pt;"><font style="font-size: 12pt;">2.</font><font id="TRGRRTFtoHTMLTab" style="display: inline-block; text-indent: 0px; font-size: 1px; width: 36pt">&#160;</font><font style="font-size: 12pt;"><u>Definitions</u>.</font></div>
      <div style="text-align: justify; text-indent: 36pt; margin-bottom: 12pt; font-size: 12pt;">As used herein, the following terms shall have the following meanings:</div>
      <div style="text-align: justify; text-indent: 36pt; margin-bottom: 12pt;"><font style="font-size: 12pt;">(a)</font><font id="TRGRRTFtoHTMLTab" style="display: inline-block; text-indent: 0px; font-size: 1px; width: 36pt">&#160;</font><font style="font-size: 12pt;">&#8220;Approval Date&#8221; shall mean the date on which this Plan is approved by the Company&#8217;s shareholders, this Plan having been approved by the Board on February 19, 2020.</font></div>
      <div style="text-align: justify; text-indent: 36pt; margin-bottom: 12pt;"><font style="font-size: 12pt;">(b)</font><font id="TRGRRTFtoHTMLTab" style="display: inline-block; text-indent: 0px; font-size: 1px; width: 36pt">&#160;</font><font style="font-size: 12pt;">&#8220;Award&#8221; shall mean the grant of an incentive stock option, a nonqualified stock option, restricted stock, restricted stock units, or other stock-based methods of compensation authorized by Section 6 of the Plan.</font></div>
      <div style="text-align: justify; text-indent: 36pt; margin-bottom: 12pt;"><font style="font-size: 12pt;">(c)</font><font id="TRGRRTFtoHTMLTab" style="display: inline-block; text-indent: 0px; font-size: 1px; width: 36pt">&#160;</font><font style="font-size: 12pt;">&#8220;Award Agreement&#8221; shall mean an agreement described in Section 7 of the Plan which is entered into between the Company and a Participant and which sets forth the terms, conditions and limitations applicable to an Award
          granted to the Participant.</font></div>
      <div style="text-align: justify; text-indent: 36pt; margin-bottom: 12pt;"><font style="font-size: 12pt;">(d)</font><font id="TRGRRTFtoHTMLTab" style="display: inline-block; text-indent: 0px; font-size: 1px; width: 36pt">&#160;</font><font style="font-size: 12pt;">&#8220;Board&#8221; shall mean the board of directors of The Eastern Company.</font></div>
      <div style="text-align: justify; text-indent: 36pt; margin-bottom: 12pt;"><font style="font-size: 12pt;">(e)</font><font id="TRGRRTFtoHTMLTab" style="display: inline-block; text-indent: 0px; font-size: 1px; width: 36pt">&#160;</font><font style="font-size: 12pt;">&#8220;Code&#8221; shall mean the Internal Revenue Code of 1986, as amended.</font></div>
      <div style="text-align: justify; text-indent: 36pt; margin-bottom: 12pt;"><font style="font-size: 12pt;">(f)</font><font id="TRGRRTFtoHTMLTab" style="display: inline-block; text-indent: 0px; font-size: 1px; width: 36pt">&#160;</font><font style="font-size: 12pt;">&#8220;Committee&#8221; shall mean the Compensation Committee of the Board or any successor committee with substantially the same responsibilities.</font></div>
      <div style="text-align: justify; text-indent: 36pt; margin-bottom: 12pt;"><font style="font-size: 12pt;">(g)</font><font id="TRGRRTFtoHTMLTab" style="display: inline-block; text-indent: 0px; font-size: 1px; width: 36pt">&#160;</font><font style="font-size: 12pt;">&#8220;Company&#8221; shall mean The Eastern Company and each &#8220;parent or subsidiary corporation&#8221; of The Eastern Company (as those terms are defined in Section 424 of the Code).</font></div>
      <div style="text-align: justify; text-indent: 36pt; margin-bottom: 12pt;"><font style="font-size: 12pt;">(h)</font><font id="TRGRRTFtoHTMLTab" style="display: inline-block; text-indent: 0px; font-size: 1px; width: 36pt">&#160;</font><font style="font-size: 12pt;">&#8220;Company Common Stock&#8221; shall mean the common stock, no par value, of The Eastern Company.</font></div>
      <div id="DSPFPageBreakArea" style="clear: both; margin-top: 10pt; margin-bottom: 10pt;">
        <div style="text-align: center;" id="DSPFPageNumberArea"><font style="font-family: 'Times New Roman',Times,serif; font-size: 8pt; font-weight: normal; font-style: normal;" id="DSPFPageNumber">1</font></div>
        <div id="DSPFPageBreak" style="page-break-after:always;">
          <hr noshade="noshade" style="margin: 4px 0px; width: 100%; border-width: 0; height: 2px; color: #000000; background-color: #000000; clear: both;"></div>
      </div>
      <div style="margin-bottom: 12pt;"><br>
      </div>
      <div style="text-align: justify; text-indent: 36pt; margin-bottom: 12pt;"><font style="font-size: 12pt;">(i)</font><font id="TRGRRTFtoHTMLTab" style="display: inline-block; text-indent: 0px; font-size: 1px; width: 36pt">&#160;</font><font style="font-size: 12pt;">&#8220;Disability&#8221; shall have the meaning set forth in Treasury Regulation Section 1.409A-3(i)(4)(i).</font></div>
      <div style="text-align: justify; text-indent: 36pt; margin-bottom: 12pt;"><font style="font-size: 12pt;">(k)</font><font id="TRGRRTFtoHTMLTab" style="display: inline-block; text-indent: 0px; font-size: 1px; width: 36pt">&#160;</font><font style="font-size: 12pt;">&#8220;Employee&#8221; shall mean an employee of the Company.</font></div>
      <div style="text-align: justify; text-indent: 36pt; margin-bottom: 12pt;"><font style="font-size: 12pt;">(l)</font><font id="TRGRRTFtoHTMLTab" style="display: inline-block; text-indent: 0px; font-size: 1px; width: 36pt">&#160;</font><font style="font-size: 12pt;">&#8220;Exchange Act&#8221; shall mean the Securities Exchange Act of 1934, as amended and in effect from time to time, or any successor statute.</font></div>
      <div style="text-align: justify; text-indent: 36pt; margin-bottom: 12pt;"><font style="font-size: 12pt;">(m)</font><font id="TRGRRTFtoHTMLTab" style="display: inline-block; text-indent: 0px; font-size: 1px; width: 36pt">&#160;</font><font style="font-size: 12pt;">&#8220;Fair Market Value&#8221; shall mean the reported price at which Company Common Stock was last traded on the day on which such value is to be determined (or, if there are no reported trades on such day, the last previous day on
          which there was a reported trade).</font></div>
      <div style="text-align: justify; text-indent: 36pt; margin-bottom: 12pt;"><font style="font-size: 12pt;">(n)</font><font id="TRGRRTFtoHTMLTab" style="display: inline-block; text-indent: 0px; font-size: 1px; width: 36pt">&#160;</font><font style="font-size: 12pt;">&#8220;Incentive Stock Option&#8221; shall mean a Stock Option which complies with all of the requirements for incentive stock options set forth in Section 422 of the Code and which may be issued pursuant to Section 6.1.</font></div>
      <div style="text-align: justify; text-indent: 36pt; margin-bottom: 12pt;"><font style="font-size: 12pt;">(o)</font><font id="TRGRRTFtoHTMLTab" style="display: inline-block; text-indent: 0px; font-size: 1px; width: 36pt">&#160;</font><font style="font-size: 12pt;">&#8220;Insider&#8221; shall mean any person who is subject to Section 16 of the Exchange Act.</font></div>
      <div style="text-align: justify; text-indent: 36pt; margin-bottom: 12pt;"><font style="font-size: 12pt;">(p)</font><font id="TRGRRTFtoHTMLTab" style="display: inline-block; text-indent: 0px; font-size: 1px; width: 36pt">&#160;</font><font style="font-size: 12pt;">&#8220;Non-Employee Director&#8221; shall mean a member of the Board who is not an Employee.</font></div>
      <div style="text-align: justify; text-indent: 36pt; margin-bottom: 12pt;"><font style="font-size: 12pt;">(q)</font><font id="TRGRRTFtoHTMLTab" style="display: inline-block; text-indent: 0px; font-size: 1px; width: 36pt">&#160;</font><font style="font-size: 12pt;">&#8220;Nonqualified Stock Option&#8221; shall mean a Stock Option which does not comply with all of the requirements for Incentive Stock Options set forth in Section 422 of the Code and which may be issued pursuant to Section 6.1.</font></div>
      <div style="text-align: justify; text-indent: 36pt; margin-bottom: 12pt;"><font style="font-size: 12pt;">(r)</font><font id="TRGRRTFtoHTMLTab" style="display: inline-block; text-indent: 0px; font-size: 1px; width: 36pt">&#160;</font><font style="font-size: 12pt;">&#8220;Participant&#8221; shall mean an Employee or a Non-Employee Director who has been designated by the Committee as eligible to receive an Award pursuant to the terms of the Plan.&#160; The only Employees that the Committee may
          designate as Participants are those Employees who are salaried officers or key employees (whether or not directors) of the Company.</font></div>
      <div style="text-align: justify; text-indent: 36pt; margin-bottom: 12pt;"><font style="font-size: 12pt;">(s)</font><font id="TRGRRTFtoHTMLTab" style="display: inline-block; text-indent: 0px; font-size: 1px; width: 36pt">&#160;</font><font style="font-size: 12pt;">&#8220;Prior Directors&#8217; Fee Program&#8221; shall mean The Eastern Company Directors Fee Program, as amended.</font></div>
      <div style="text-align: justify; text-indent: 36pt; margin-bottom: 12pt;"><font style="font-size: 12pt;">(t)</font><font id="TRGRRTFtoHTMLTab" style="display: inline-block; text-indent: 0px; font-size: 1px; width: 36pt">&#160;</font><font style="font-size: 12pt;">&#8220;Prior Plan&#8221; shall mean The Eastern Company 2010 Executive Stock Incentive Plan.</font></div>
      <div style="text-align: justify; text-indent: 36pt; margin-bottom: 12pt;"><font style="font-size: 12pt;">(u)</font><font id="TRGRRTFtoHTMLTab" style="display: inline-block; text-indent: 0px; font-size: 1px; width: 36pt">&#160;</font><font style="font-size: 12pt;">&#8220;Restricted Stock&#8221; shall mean shares of Company Common Stock which have certain restrictions attached to the ownership thereof and which may be issued pursuant to Section 6.2 of the Plan.</font></div>
      <div style="text-align: justify; text-indent: 36pt; margin-bottom: 12pt;"><font style="font-size: 12pt;">(v)</font><font id="TRGRRTFtoHTMLTab" style="display: inline-block; text-indent: 0px; font-size: 1px; width: 36pt">&#160;</font><font style="font-size: 12pt;">&#8220;Restricted Stock Unit&#8221; shall mean a Participant&#8217;s right to receive one share of the Company Common Stock (or the cash equivalent thereof), subject to certain restrictions and to a risk of forfeiture, at the end of such
          restricted period, as may be issued pursuant to Section 6.2 of the Plan.</font></div>
      <div style="text-align: justify; text-indent: 36pt; margin-bottom: 12pt;"><font style="font-size: 12pt;">(w)</font><font id="TRGRRTFtoHTMLTab" style="display: inline-block; text-indent: 0px; font-size: 1px; width: 36pt">&#160;</font><font style="font-size: 12pt;">&#8220;Rule 16b-3&#8221; shall mean Rule 16b-3 promulgated by the Securities and Exchange Commission under the Exchange Act, as now in force or as such regulation or successor regulation shall hereafter be amended.</font></div>
      <div style="text-align: justify; text-indent: 36pt; margin-bottom: 12pt;"><font style="font-size: 12pt;">(x)</font><font id="TRGRRTFtoHTMLTab" style="display: inline-block; text-indent: 0px; font-size: 1px; width: 36pt">&#160;</font><font style="font-size: 12pt;">&#8220;Section 16&#8221; shall mean Section 16 of the Exchange Act and the rules promulgated thereunder, as they may be amended from time to time.</font></div>
      <div style="text-align: justify; text-indent: 36pt; margin-bottom: 12pt;"><font style="font-size: 12pt;">(y)</font><font id="TRGRRTFtoHTMLTab" style="display: inline-block; text-indent: 0px; font-size: 1px; width: 36pt">&#160;</font><font style="font-size: 12pt;">&#8220;Securities Act&#8221; shall mean the Securities Act of 1933, as amended and in effect from time to time, or any successor statute.</font></div>
      <div id="DSPFPageBreakArea" style="clear: both; margin-top: 10pt; margin-bottom: 10pt;">
        <div style="text-align: center;" id="DSPFPageNumberArea"><font style="font-size: 8pt; font-weight: normal; font-style: normal; font-family: 'Times New Roman',Times,serif;" id="DSPFPageNumber">2</font></div>
        <div id="DSPFPageBreak" style="page-break-after:always;">
          <hr noshade="noshade" style="margin: 4px 0px; width: 100%; border-width: 0; height: 2px; color: #000000; background-color: #000000; clear: both;"></div>
      </div>
      <div style="margin-bottom: 8pt;"><br>
      </div>
      <div style="text-align: justify; text-indent: 36pt; margin-bottom: 12pt;"><font style="font-size: 12pt;">(z)</font><font id="TRGRRTFtoHTMLTab" style="display: inline-block; text-indent: 0px; font-size: 1px; width: 36pt">&#160;</font><font style="font-size: 12pt;">&#8220;Stock Option&#8221; shall mean a right granted pursuant to Section 6.1 of the Plan to purchase a specified number of shares of Company Common Stock at a specified price during a specified period of time.&#160; Stock Options may be
          either Incentive Stock Options or Nonqualified Stock Options.</font></div>
      <div style="text-align: justify; margin-bottom: 12pt;"><font style="font-size: 12pt;">3.</font><font id="TRGRRTFtoHTMLTab" style="display: inline-block; text-indent: 0px; font-size: 1px; width: 36pt">&#160;</font><font style="font-size: 12pt;"><u>Administration</u>.</font></div>
      <div style="text-align: justify; text-indent: 36pt; margin-bottom: 12pt;"><font style="font-size: 12pt;">(a)</font><font id="TRGRRTFtoHTMLTab" style="display: inline-block; text-indent: 0px; font-size: 1px; width: 36pt">&#160;</font><font style="font-size: 12pt;">In order to administer the issuance of Awards to Participants pursuant to the Plan, there shall be a Committee which is appointed by the Board and which consists of not less than two Non-Employee Directors of the
          Company.&#160; Each member of the Committee shall be a non-employee director as such term is defined for purposes of Rule 16b-3.</font></div>
      <div style="text-align: justify; text-indent: 36pt; margin-bottom: 12pt;"><font style="font-size: 12pt;">(b)</font><font id="TRGRRTFtoHTMLTab" style="display: inline-block; text-indent: 0px; font-size: 1px; width: 36pt">&#160;</font><font style="font-size: 12pt;">Subject to the express provisions of the Plan, the Committee shall periodically determine which Employees and/or Non-Employee Directors shall be Participants in the Plan and the nature, amount, pricing, timing and other
          terms of the Awards.&#160; However, in no event may an Incentive Stock Option be granted to a Non-Employee Director.&#160; Each Award shall be evidenced by an Award Agreement which shall be signed by an officer of the Company or the Committee, and by the
          Participant.</font></div>
      <div style="text-align: justify; text-indent: 36pt; margin-bottom: 12pt;"><font style="font-size: 12pt;">(c)</font><font id="TRGRRTFtoHTMLTab" style="display: inline-block; text-indent: 0px; font-size: 1px; width: 36pt">&#160;</font><font style="font-size: 12pt;">The Committee shall have full power and authority, subject to such orders or resolutions not inconsistent with the provisions of the Plan as may from time to time be issued or adopted by the Board, to construe and
          interpret the provisions of and administer the Plan and the Award Agreements.&#160; Subject to any applicable provisions of the certificate of incorporation or the bylaws of the Company, all such decisions shall be final and binding on all persons
          including the Company and its shareholders, Employees, Non-Employee Directors and Participants.&#160; In the event of any conflict between an Award Agreement and the Plan, the terms of the Plan shall govern.</font></div>
      <div style="text-align: justify; text-indent: 36pt; margin-bottom: 12pt;"><font style="font-size: 12pt;">(d)</font><font id="TRGRRTFtoHTMLTab" style="display: inline-block; text-indent: 0px; font-size: 1px; width: 36pt">&#160;</font><font style="font-size: 12pt;">The Committee may delegate to designated officers or employees of the Company the authority to execute and deliver such instruments and documents, to do all such acts and things, and to take all such other steps deemed
          necessary or advisable for the effective administration of the Plan in accordance with its terms and purpose.</font></div>
      <div style="text-align: justify; text-indent: 36pt; margin-bottom: 12pt;"><font style="font-size: 12pt;">(e)</font><font id="TRGRRTFtoHTMLTab" style="display: inline-block; text-indent: 0px; font-size: 1px; width: 36pt">&#160;</font><font style="font-size: 12pt;">It is the intent of the Company that the Plan and the Awards granted hereunder shall satisfy and be interpreted in a manner that, in the case of Participants who are or may be Insiders, satisfies the applicable
          requirements of Rule 16b-3, so that such persons will be entitled&#160;to the benefits of Rule 16b-3 or other exemptive rules under Section 16 and will not be subjected to avoidable liability thereunder.&#160; If any provision of the Plan or of any such
          Award would otherwise frustrate or conflict with the intent expressed in this Section 3(e), that provision (to the extent possible) shall be interpreted and deemed amended so as to avoid such conflict.&#160; To the extent of any remaining
          irreconcilable conflict with such intent, the provision shall be deemed void as applicable to Insiders.</font></div>
      <div style="text-align: justify; margin-bottom: 12pt;"><font style="font-size: 12pt;">4.</font><font id="TRGRRTFtoHTMLTab" style="display: inline-block; text-indent: 0px; font-size: 1px; width: 36pt">&#160;</font><font style="font-size: 12pt;"><u>Eligibility</u>.</font></div>
      <div style="text-align: justify; text-indent: 36pt; margin-bottom: 12pt; font-size: 12pt;">Awards may be granted only to those Employees and/or Non-Employee Directors who are designated as Participants from time to time by the Committee.&#160; However, in
        no event may an Incentive Stock Option be granted to a Non-Employee Director.&#160; Subject to the express conditions of the Plan, the Committee shall determine which Employees and/or Non-Employee Directors shall be Participants, the types of Awards to
        be made to Participants, and the terms, conditions and limitations applicable to the Awards.&#160; More than one Award may be granted to the same Participant. Non-Employee Directors shall be eligible to receive shares of Company Common Stock in payment
        of Directors&#8217; Fees in accordance with the Plan.</div>
      <div id="DSPFPageBreakArea" style="clear: both; margin-top: 10pt; margin-bottom: 10pt;">
        <div style="text-align: center;" id="DSPFPageNumberArea"><font style="font-size: 8pt; font-weight: normal; font-style: normal; font-family: 'Times New Roman',Times,serif;" id="DSPFPageNumber">3</font></div>
        <div id="DSPFPageBreak" style="page-break-after:always;">
          <hr noshade="noshade" style="margin: 4px 0px; width: 100%; border-width: 0; height: 2px; color: #000000; background-color: #000000; clear: both;"></div>
      </div>
      <div style="margin-bottom: 8pt;"><br>
      </div>
      <div style="text-align: justify; margin-bottom: 12pt;"><font style="font-size: 12pt;">5.</font><font id="TRGRRTFtoHTMLTab" style="display: inline-block; text-indent: 0px; font-size: 1px; width: 36pt">&#160;</font><font style="font-size: 12pt;"><u>Shares
            Subject to the Plan</u>.</font></div>
      <div style="text-align: justify; text-indent: 36pt; margin-bottom: 12pt; font-size: 12pt;">The total amount of Company Common Stock with respect to which Awards may be granted under the Plan shall not exceed in the aggregate (i) 500,000 shares of
        Company Common Stock, plus (ii) the number of shares of Company Common Stock available for future awards under the Prior Plan as of the Approval Date, plus (iii) the number of shares of Company Common Stock related to any award outstanding under
        the Prior Plan as of the Approval Date that thereafter lapses, expires, terminates, ceases to be exercisable or is forfeited without the issuance of such shares of Company Common Stock, plus (iv) the number of shares of Company Common Stock
        available for payment of Directors&#8217; Fees under the Prior Directors&#8217; Fee Program and previously registered on a Registration Statement on Form S-8 filed by the Company.&#160; The shares relating to Awards granted under the Plan shall be authorized but
        unissued shares of Company Common Stock.&#160; No grants will be made under the Prior Plan or the Prior Directors&#8217; Fee Program after the Approval Date.</div>
      <div style="text-align: justify; text-indent: 36pt; margin-bottom: 12pt; font-size: 12pt;">Subject to the limitations of the Code and Rule 16b-3 (if applicable), if any Awards under the Plan, in whole or in part, are forfeited, terminated, expire
        unexercised, are settled in cash in lieu of shares, are exchanged for other Awards or are released from a reserve for failure to meet the maximum payout, the shares that were subject to or reserved for such Awards shall again be available for
        Awards under the Plan to the extent of such forfeiture, termination, expiration, settlement in cash, or exchange of such Awards or to the extent the shares were so released from a reserve.&#160; Notwithstanding anything else herein to the contrary, the
        following shares will not be available for subsequent issuance: shares tendered for to satisfy an exercise price, shares withheld to satisfy tax withholding, and shares not delivered under stock appreciation right awards.&#160; This paragraph shall
        apply to the number of shares reserved and available for Incentive Stock Options only to the extent consistent with applicable regulations relating to Incentive Stock Options under the Code.</div>
      <div style="text-align: justify; margin-bottom: 12pt;"><font style="font-size: 12pt;">6.</font><font id="TRGRRTFtoHTMLTab" style="display: inline-block; text-indent: 0px; font-size: 1px; width: 36pt">&#160;</font><font style="font-size: 12pt;"><u>Awards</u>.</font></div>
      <div style="text-align: justify; text-indent: 36pt; margin-bottom: 12pt; font-size: 12pt;">Awards may include those described in this Section 6. The Committee may grant Awards singly or in combination with other Awards, as the Committee may in its
        sole discretion determine.&#160; Notwithstanding anything else herein to the contrary, the minimum stated vesting period for Awards granted under the Plan shall be one (1) year; provided, however, that (i) Awards granted to Non-Employee Directors under
        Section 6.3 shall not be subject to this minimum vesting requirement and (ii) up to 5% of the shares of Company Common Stock reserved hereunder may be available for grant in the form of Awards that vest in less than one year (Awards granted
        pursuant to Section 6.3 shall not apply towards this 5% carve-out).</div>
      <div style="text-align: justify; text-indent: 36pt; margin-bottom: 12pt;"><font style="font-size: 12pt;">6.1.</font><font id="TRGRRTFtoHTMLTab" style="display: inline-block; text-indent: 0px; font-size: 1px; width: 36pt">&#160;</font><font style="font-size: 12pt;"><u>Stock Options</u>.</font></div>
      <div style="text-align: justify; text-indent: 72pt; margin-bottom: 12pt;"><font style="font-size: 12pt;">(a)</font><font id="TRGRRTFtoHTMLTab" style="display: inline-block; text-indent: 0px; font-size: 1px; width: 36pt">&#160;</font><font style="font-size: 12pt;">The exercise price of each Stock Option shall be determined by the Committee.&#160; In no event shall the exercise price be less than one hundred percent (100%) of the Fair Market Value of the shares of Company Common Stock at
          the time of grant of the Stock Option.</font></div>
      <div style="text-align: justify; text-indent: 72pt; margin-bottom: 12pt;"><font style="font-size: 12pt;">(b)</font><font id="TRGRRTFtoHTMLTab" style="display: inline-block; text-indent: 0px; font-size: 1px; width: 36pt">&#160;</font><font style="font-size: 12pt;">In no event shall an Incentive Stock Option be granted to a Non-Employee Director.&#160; In addition, an Incentive Stock Option shall not be granted under the Plan to an Employee who, at the time of such grant, owns (actually
          or constructively) more than ten percent (10%) of the total voting power of all classes of stock of the Company, unless the purchase price of the shares subject to such Incentive Stock Option is at least one hundred ten percent (110%) of the Fair
          Market Value of the shares of Company Common Stock at the time of the grant of the option and the option is not exercisable after the expiration of five years from the date it is granted.</font></div>
      <div id="DSPFPageBreakArea" style="clear: both; margin-top: 10pt; margin-bottom: 10pt;">
        <div style="text-align: center;" id="DSPFPageNumberArea"><font style="font-size: 8pt; font-weight: normal; font-style: normal; font-family: 'Times New Roman',Times,serif;" id="DSPFPageNumber">4</font></div>
        <div id="DSPFPageBreak" style="page-break-after:always;">
          <hr noshade="noshade" style="margin: 4px 0px; width: 100%; border-width: 0; height: 2px; color: #000000; background-color: #000000; clear: both;"></div>
      </div>
      <div style="margin-bottom: 8pt;"><br>
      </div>
      <div style="text-align: justify; text-indent: 72pt; margin-bottom: 12pt;"><font style="font-size: 12pt;">(c)</font><font id="TRGRRTFtoHTMLTab" style="display: inline-block; text-indent: 0px; font-size: 1px; width: 36pt">&#160;</font><font style="font-size: 12pt;">No Stock Option intended to be an Incentive Stock Option shall be exercisable in whole or in part after ten years from the date it is granted.&#160; The Committee, in its discretion, may impose vesting or other restrictions
          which provide that a Stock Option may not be exercised in whole or in part for any period or periods of time specified by the Committee, or may provide for the amendment of outstanding unvested Stock Options in order to accelerate the vesting of
          such Stock Options.&#160; Except as may be so provided and except as provided in Section 6.1(d), any Stock Option may be exercised in whole at any time, or in part from time to time, during its term.</font></div>
      <div style="text-align: justify; text-indent: 72pt; margin-bottom: 12pt;"><font style="font-size: 12pt;">(d)</font><font id="TRGRRTFtoHTMLTab" style="display: inline-block; text-indent: 0px; font-size: 1px; width: 36pt">&#160;</font><font style="font-size: 12pt;">Any Stock Option, the term of which has not theretofore expired, may be exercised during the optionee&#8217;s employment with the Company or during the optionee&#8217;s service as a Non-Employee Director.&#160; In addition, subject to the
          condition that no Stock Option may be exercised in whole or in part after its term expires:</font></div>
      <div style="text-align: justify; text-indent: 108pt; margin-bottom: 12pt;"><font style="font-size: 12pt;">(i)</font><font id="TRGRRTFtoHTMLTab" style="display: inline-block; text-indent: 0px; font-size: 1px; width: 36pt">&#160;</font><font style="font-size: 12pt;">upon the termination of an optionee&#8217;s employment or service as a Non-Employee Director other than by reason of death, the optionee may, within three months after the date of such termination, exercise such option in whole
          or in part to the extent it was exercisable (or became exercisable) at the time of his or her termination of employment or service as a Non-Employee Director, and after such three month period the right to exercise the Stock Option shall cease; <font style="font-style: italic;">provided, however</font>, that: (A) if such termination is due to Disability, such three month period shall be extended to twelve (12) months; and (B) if such termination is due to retirement at or after attaining
          age sixty-five (65), such three month period shall be extended to twelve (12) months; and</font></div>
      <div style="text-align: justify; text-indent: 108pt; margin-bottom: 12pt;"><font style="font-size: 12pt;">(ii)</font><font id="TRGRRTFtoHTMLTab" style="display: inline-block; text-indent: 0px; font-size: 1px; width: 36pt">&#160;</font><font style="font-size: 12pt;">upon the death of any optionee, either prior to the termination of his or her employment or service as a Non-Employee Director or within the three month or twelve (12) month period referred to in Section 6.1(d)(i) above,
          such optionee&#8217;s estate (or the person or persons to whom such optionee&#8217;s rights under the Stock Option are transferred by will or the laws of descent and distribution) may, within twelve (12) months after the date of such optionee&#8217;s death,
          exercise such Stock Option in whole or in part to the extent it was exercisable (or became exercisable) at the time of his or her death, and after such twelve (12) month period the right to exercise the Stock Option shall cease.</font></div>
      <div style="text-align: justify; text-indent: 72pt; margin-bottom: 12pt;"><font style="font-size: 12pt;">(e)</font><font id="TRGRRTFtoHTMLTab" style="display: inline-block; text-indent: 0px; font-size: 1px; width: 36pt">&#160;</font><font style="font-size: 12pt;">The exercise price of each share subject to a Stock Option shall, at the time of exercise of the Stock Option, be paid in full in cash, or with previously acquired shares of&#160;Company Common Stock having an aggregate Fair
          Market Value at such time equal to the exercise price, or in cash and such shares. To the extent permissible under applicable tax, securities and other laws, the Committee may, in its sole discretion, permit the Participant to satisfy the
          exercise price by directing the Company to withhold shares of Company Common Stock to which the Participant is entitled as a result of the exercise of a Stock Option.</font></div>
      <div style="text-align: justify; text-indent: 72pt; margin-bottom: 12pt;"><font style="font-size: 12pt;">(f)</font><font id="TRGRRTFtoHTMLTab" style="display: inline-block; text-indent: 0px; font-size: 1px; width: 36pt">&#160;</font><font style="font-size: 12pt;">Upon the exercise of a Stock Option, a certificate or certificates representing the shares of Company Common Stock so purchased shall be delivered to the person entitled thereto or such shares shall be held in book entry
          form.</font></div>
      <div style="text-align: justify; text-indent: 72pt; margin-bottom: 12pt;"><font style="font-size: 12pt;">(g)</font><font id="TRGRRTFtoHTMLTab" style="display: inline-block; text-indent: 0px; font-size: 1px; width: 36pt">&#160;</font><font style="font-size: 12pt;">An optionee shall have no rights as a shareholder with respect to shares subject to his or her Stock Option until such shares are issued to him or her and are fully paid, and no adjustment will be made for dividends or
          other rights for which the record date is prior thereto.</font></div>
      <div style="text-align: justify; text-indent: 72pt; margin-bottom: 12pt;"><font style="font-size: 12pt;">(h)</font><font id="TRGRRTFtoHTMLTab" style="display: inline-block; text-indent: 0px; font-size: 1px; width: 36pt">&#160;</font><font style="font-size: 12pt;">Each Stock Option granted under the Plan shall by its terms be non-transferable by the optionee other than by will or the laws of descent and distribution and, during the lifetime of the optionee, shall be exercisable
          only by the optionee.</font></div>
      <div id="DSPFPageBreakArea" style="clear: both; margin-top: 10pt; margin-bottom: 10pt;">
        <div style="text-align: center;" id="DSPFPageNumberArea"><font style="font-size: 8pt; font-weight: normal; font-style: normal; font-family: 'Times New Roman',Times,serif;" id="DSPFPageNumber">5</font></div>
        <div id="DSPFPageBreak" style="page-break-after:always;">
          <hr noshade="noshade" style="margin: 4px 0px; width: 100%; border-width: 0; height: 2px; color: #000000; background-color: #000000; clear: both;"></div>
      </div>
      <div style="margin-bottom: 8pt;"><br>
      </div>
      <div style="text-align: justify; text-indent: 36pt; margin-bottom: 12pt;"><font style="font-size: 12pt;">6.2</font><font id="TRGRRTFtoHTMLTab" style="display: inline-block; text-indent: 0px; font-size: 1px; width: 36pt">&#160;</font><font style="font-size: 12pt;"><u>Restricted Stock and Restricted Stock Units</u>.</font></div>
      <div style="text-align: justify; text-indent: 72pt; margin-bottom: 12pt;"><font style="font-size: 12pt;">(a)</font><font id="TRGRRTFtoHTMLTab" style="display: inline-block; text-indent: 0px; font-size: 1px; width: 36pt">&#160;</font><font style="font-size: 12pt;">Vesting.&#160; Restricted Stock and Restricted Stock Units will vest over such period as is determined by the Committee, subject to the first paragraph of Section 6.&#160; Time-based Restricted Stock and Restricted Stock Units
          shall automatically vest upon a Participant&#8217;s termination of employment as a result of death or Disability, unless otherwise provided in the applicable Award Agreements.</font></div>
      <div style="text-align: justify; text-indent: 72pt; margin-bottom: 12pt;"><font style="font-size: 12pt;">(b)</font><font id="TRGRRTFtoHTMLTab" style="display: inline-block; text-indent: 0px; font-size: 1px; width: 36pt">&#160;</font><font style="font-size: 12pt;">Restrictions. Restricted Stock and Restricted Stock Units shall be subject to such restrictions on transferability, risk of forfeiture and other restrictions, if any, as the Committee may impose.&#160; Restrictions on
          Restricted Stock and Restricted Stock Units may lapse separately or in combination at such times, under such circumstances (including based on achievement of performance goals and/or future service requirements), in such installments or otherwise
          and under such other circumstances as the Committee may determine at the date of grant or thereafter.&#160; Delivery of Company Common Stock (or cash equivalent) in connection with the lapse of restrictions with respect to Restricted Stock Units shall
          occur at such times (which need not be at the time of the lapse of restrictions) as the Committee shall determine.&#160; Except to the extent restricted under the terms of the Plan and any Award Agreement relating to the Restricted Stock, a
          Participant granted Restricted Stock shall have all of the rights of a shareholder, including the right to vote the Restricted Stock and the right to receive dividends thereon (subject to any mandatory reinvestment or other requirement imposed by
          the Committee and further subject to the provisions of subsection (e) below).&#160; In the case of Restricted Stock Units, no shares of Company Common Stock shall be issued at the time an Award is made, and the Company shall not be required to set
          aside a fund for the payment of such Award.</font></div>
      <div style="text-align: justify; text-indent: 72pt; margin-bottom: 12pt;"><font style="font-size: 12pt;">(c)</font><font id="TRGRRTFtoHTMLTab" style="display: inline-block; text-indent: 0px; font-size: 1px; width: 36pt">&#160;</font><font style="font-size: 12pt;">Forfeiture.&#160; Except as otherwise determined by the Committee or as otherwise set forth herein or in an applicable Award Agreement, upon termination of employment or service during the applicable restriction period,
          Restricted Stock and Restricted Stock Units that are at that time subject to restrictions shall be forfeited and, in the case of Restricted Stock, reacquired by the Company; provided, however, that the Committee may determine in any Award
          Agreement or otherwise, that restrictions or forfeiture conditions relating to Restricted Stock will lapse in whole or in part, including in the event of terminations resulting from specified causes.</font></div>
      <div style="text-align: justify; text-indent: 72pt; margin-bottom: 12pt;"><font style="font-size: 12pt;">(d)</font><font id="TRGRRTFtoHTMLTab" style="display: inline-block; text-indent: 0px; font-size: 1px; width: 36pt">&#160;</font><font style="font-size: 12pt;">Certificates for Stock.&#160; Restricted Stock granted under the Plan may be evidenced in such manner as the Committee shall determine, including in book-entry form.&#160; If certificates representing Restricted Stock are
          registered in the name of the Participant, the Committee may require that such certificates bear an appropriate legend referring to the terms, conditions and restrictions applicable to such Restricted Stock, that the Company retain physical
          possession of the certificates, and that the Participant deliver a stock power to the Company, endorsed in blank, relating to the Restricted Stock.&#160; With respect to Restricted Stock Units, settlement shall be made in Company Common Stock, cash,
          or a combination of the two, as determined by the Committee.</font></div>
      <div style="text-align: justify; text-indent: 72pt; margin-bottom: 12pt;"><font style="font-size: 12pt;">&#160;(e)</font><font id="TRGRRTFtoHTMLTab" style="display: inline-block; text-indent: 0px; font-size: 1px; width: 36pt">&#160;</font><font style="font-size: 12pt;">Dividends, Dividend Equivalents and Splits.&#160; (i) As a condition to the grant of an Award of Restricted Stock, the Committee may provide that any dividends paid on a share of Restricted Stock shall be either (A) paid with
          respect to such Restricted Stock at the dividend payment date in cash, in kind, or in a number of shares of unrestricted Company Common Stock having a Fair Market Value equal to the amount of such dividends, or (B) automatically reinvested in
          additional Restricted Stock or held in kind; provided, however, in the case of either (A) or (B), any cash, shares or additional Restricted Stock shall be credited to the Participant&#8217;s account and shall be subject to the same terms and conditions
          as the underlying Restricted Stock to which it relates.&#160; (ii) With respect to Restricted Stock Units, the Committee shall determine whether the Restricted Stock Unit Award will be credited with dividend equivalents equal to dividends paid on
          Stock during the restricted period and, if so, when and in what form such dividend</font></div>
      <div id="DSPFPageBreakArea" style="clear: both; margin-top: 10pt; margin-bottom: 10pt;">
        <div style="text-align: center;" id="DSPFPageNumberArea"><font style="font-size: 8pt; font-weight: normal; font-style: normal; font-family: 'Times New Roman',Times,serif;" id="DSPFPageNumber">6</font></div>
        <div id="DSPFPageBreak" style="page-break-after:always;">
          <hr noshade="noshade" style="margin: 4px 0px; width: 100%; border-width: 0; height: 2px; color: #000000; background-color: #000000; clear: both;"></div>
      </div>
      <div style="margin-bottom: 12pt;"><br>
      </div>
      <div style="text-align: justify; margin-bottom: 12pt; font-size: 12pt;">equivalents will be paid.&#160; Any dividend equivalents credited with respect to a Restricted Stock Unit Award shall be subject to the same terms and conditions as the underlying
        Restricted Stock Unit Award to which such dividend equivalents relate. (iii) Company Common Stock distributed in connection with a stock split or stock dividend, and other property distributed as a dividend, shall be subject to restrictions and a
        risk of forfeiture to the same extent as the Restricted Stock with respect to which such Company Common Stock or other property relates.&#160; For purposes of clarity, in no event shall any dividends or dividend equivalents be paid unless and until the
        Award associated with such dividend or dividend equivalent has vested.</div>
      <div style="text-align: justify; text-indent: 36pt; margin-bottom: 12pt;"><font style="font-size: 12pt;">6.3</font><font id="TRGRRTFtoHTMLTab" style="display: inline-block; text-indent: 0px; font-size: 1px; width: 36pt">&#160;</font><font style="font-size: 12pt;"><u>Non-Employee Director Fee Program</u>. The Committee may grant Awards in the form of shares of Company Common Stock to Non-Employee Directors under the Company&#8217;s Directors Fee Program, as may be in effect from time to
          time.&#160; Notwithstanding anything herein to the contrary, such Awards need not be evidenced by an Award Agreement.</font></div>
      <div style="text-align: justify; text-indent: 36pt; margin-bottom: 12pt;"><font style="font-size: 12pt;">6.4</font><font id="TRGRRTFtoHTMLTab" style="display: inline-block; text-indent: 0px; font-size: 1px; width: 36pt">&#160;</font><font style="font-size: 12pt;"><u>Other Awards</u>.&#160;The Committee may from time to time grant shares of Company Common Stock, other stock-based and non-stock-based Awards (including, without limitation, Awards pursuant to which shares of Company Common
          Stock are or may in the future be acquired), Awards denominated in stock units, securities convertible into shares of Company Common Stock, stock appreciation rights, performance shares, phantom securities and dividend equivalents.&#160; Any such
          Awards granted pursuant to this Section 6.4 may be settled in shares of Common Stock, cash or other property, as determined by the Committee in its discretion, as provided in the Award Agreement. The Committee shall determine the terms and
          conditions of such Awards; <font style="font-style: italic;">provided, however</font>, that such Awards shall not be inconsistent with the terms and purposes of the Plan.</font></div>
      <div style="text-align: justify; margin-bottom: 12pt;"><font style="font-size: 12pt;">7.</font><font id="TRGRRTFtoHTMLTab" style="display: inline-block; text-indent: 0px; font-size: 1px; width: 36pt">&#160;</font><font style="font-size: 12pt;"><u>Award
            Agreements</u>.</font></div>
      <div style="text-align: justify; text-indent: 36pt; margin-bottom: 12pt; font-size: 12pt;">Each Award granted under the Plan shall be evidenced by an Award Agreement setting forth the number of shares of Company Common Stock subject to the Award, and
        such other terms and conditions applicable to the Award as are determined by the Committee.&#160; By acceptance of an Award, the Participant thereby agrees to such terms and conditions and to the terms of the Plan pertaining thereto.</div>
      <div style="text-align: justify; margin-bottom: 12pt;"><font style="font-size: 12pt;">8.</font><font id="TRGRRTFtoHTMLTab" style="display: inline-block; text-indent: 0px; font-size: 1px; width: 36pt">&#160;</font><font style="font-size: 12pt;"><u>Term of
            Plan</u>.</font></div>
      <div style="text-align: justify; text-indent: 36pt; margin-bottom: 12pt; font-size: 12pt;">The Plan shall terminate on February 19, 2030 (ten years after the date of its adoption by the Board) or upon any earlier termination date established by
        action of the Board, and no Awards shall be granted thereafter.&#160;&#160;Such termination shall not affect the validity of any Awards then outstanding.</div>
      <div style="text-align: justify; margin-bottom: 12pt;"><font style="font-size: 12pt;">9.</font><font id="TRGRRTFtoHTMLTab" style="display: inline-block; text-indent: 0px; font-size: 1px; width: 36pt">&#160;</font><font style="font-size: 12pt;"><u>Adjustment





            Provisions</u>.</font></div>
      <div style="text-align: justify; text-indent: 36pt; margin-bottom: 12pt;"><font style="font-size: 12pt;">(a)</font><font id="TRGRRTFtoHTMLTab" style="display: inline-block; text-indent: 0px; font-size: 1px; width: 36pt">&#160;</font><font style="font-size: 12pt;">If through, or as a result of, any merger, consolidation, sale of all or substantially all of the assets of the Company, reorganization, recapitalization, reclassification, stock dividend, stock split, reverse stock split
          or other similar transaction: (i) the outstanding shares of Company Common Stock are increased or decreased or are exchanged for a different number or kind of shares or other securities of the Company, or (ii) additional shares or new or
          different shares or other securities of the Company or other non-cash assets are distributed with respect to shares of Company Common Stock or other securities, then the aggregate number of shares of Company Common Stock subject to the Plan, the
          number of shares of Company Common Stock subject to each outstanding Award, and the exercise price per share in each such outstanding Award, shall be proportionately adjusted.</font></div>
      <div style="text-align: justify; text-indent: 36pt; margin-bottom: 12pt;"><font style="font-size: 12pt;">(b)</font><font id="TRGRRTFtoHTMLTab" style="display: inline-block; text-indent: 0px; font-size: 1px; width: 36pt">&#160;</font><font style="font-size: 12pt;">Any adjustments under this Section 9 will be made by the Board, whose determination as to what adjustments, if any, will be made and the extent thereof will be final,&#160;binding and conclusive.&#160; No fractional shares will be
          issued pursuant to an Award on account of any such adjustments.</font></div>
      <div id="DSPFPageBreakArea" style="clear: both; margin-top: 10pt; margin-bottom: 10pt;">
        <div style="text-align: center;" id="DSPFPageNumberArea"><font style="font-size: 8pt; font-weight: normal; font-style: normal; font-family: 'Times New Roman',Times,serif;" id="DSPFPageNumber">7</font></div>
        <div id="DSPFPageBreak" style="page-break-after:always;">
          <hr noshade="noshade" style="margin: 4px 0px; width: 100%; border-width: 0; height: 2px; color: #000000; background-color: #000000; clear: both;"></div>
      </div>
      <div style="margin-bottom: 12pt;"><br>
      </div>
      <div style="text-align: justify; text-indent: 36pt; margin-bottom: 12pt;"><font style="font-size: 12pt;">(c)</font><font id="TRGRRTFtoHTMLTab" style="display: inline-block; text-indent: 0px; font-size: 1px; width: 36pt">&#160;</font><font style="font-size: 12pt;">No adjustments shall be made under this Section 9 which would, within the meaning of any applicable provision of the Code, constitute a modification, extension or renewal of an Incentive Stock Option or a grant of
          additional benefits to a Participant who has been granted an Incentive Stock Option.</font></div>
      <div style="text-align: justify; margin-bottom: 12pt;"><font style="font-size: 12pt;">10.</font><font id="TRGRRTFtoHTMLTab" style="display: inline-block; text-indent: 0px; font-size: 1px; width: 36pt">&#160;</font><font style="font-size: 12pt;"><u>Amendments





            and Discontinuance</u>.</font></div>
      <div style="text-align: justify; text-indent: 36pt; margin-bottom: 12pt; font-size: 12pt;">The Board may amend, suspend or discontinue the Plan, but may not, without the prior approval of the shareholders of the Company, make any amendment (i) which
        operates: (a) to abolish the Committee, change the qualification of its members or withdraw its authority to interpret or administer the Plan; (b) to make any material change in the class of eligible Employees under the Plan; (c) to increase the
        total number of shares for which Awards may be granted under the Plan except as permitted by the provisions of Section 9 hereof; (d) to extend the term of the Plan; (e) to permit adjustments or reductions of the price at which shares may be
        acquired under an Award previously-granted under the Plan except as permitted by the provisions of Section 9 hereof; (f) to extend the maximum Incentive Stock Option period; or (g) to decrease the minimum Incentive Stock Option price; or (ii) which
        otherwise requires approval under the rules of any stock exchange upon which the Company&#8217;s securities are then listed.</div>
      <div style="text-align: justify; margin-bottom: 12pt;"><font style="font-size: 12pt;">11.</font><font id="TRGRRTFtoHTMLTab" style="display: inline-block; text-indent: 0px; font-size: 1px; width: 36pt">&#160;</font><font style="font-size: 12pt;"><u>Continuance





            of Employment or Service as a Non-Employee Director</u>.</font></div>
      <div style="text-align: justify; text-indent: 36pt; margin-bottom: 12pt; font-size: 12pt;">Neither the Plan nor the grant of any Award hereunder shall interfere with or limit in any way the right of the Company to terminate any Employee&#8217;s employment
        or to terminate the service of any Non-Employee Director at any time and for any reason, nor shall the Plan or the grant of any Award hereunder impose any obligation on the Company to continue the employment of any Employee or the service of any
        Non-Employee Director.</div>
      <div style="text-align: justify; margin-bottom: 12pt;"><font style="font-size: 12pt;">12.</font><font id="TRGRRTFtoHTMLTab" style="display: inline-block; text-indent: 0px; font-size: 1px; width: 36pt">&#160;</font><font style="font-size: 12pt;"><u>Tax
            Withholding</u>.</font></div>
      <div style="text-align: justify; text-indent: 36pt; margin-bottom: 12pt; font-size: 12pt;">The Participant shall be responsible for the payment of all federal, state and local taxes relating to the grant, vesting or exercise of any Award granted
        under the Plan.&#160; The Company shall have the power to withhold, or to require a Participant to remit to the Company, an amount sufficient to satisfy federal, state and local withholding tax requirements on any Award granted under the Plan.&#160; To the
        extent permissible under applicable tax, securities and other laws, the Committee may, in its sole discretion, permit the Participant to satisfy a tax withholding requirement by directing the Company to withhold shares of Company Common Stock to
        which the Participant is entitled as a result of the exercise of a Stock Option or stock-settled stock appreciation rights award or the lapse of restrictions on shares of Restricted Stock or delivery of Company Common Stock in connection with
        Restricted Stock Units.</div>
      <div style="text-align: justify; margin-bottom: 12pt;"><font style="font-size: 12pt;">13.</font><font id="TRGRRTFtoHTMLTab" style="display: inline-block; text-indent: 0px; font-size: 1px; width: 36pt">&#160;</font><font style="font-size: 12pt;"><u>Required





            Notifications by Participant</u>.</font></div>
      <div style="text-align: justify; text-indent: 36pt; margin-bottom: 12pt;"><font style="font-size: 12pt;">(a)</font><font id="TRGRRTFtoHTMLTab" style="display: inline-block; text-indent: 0px; font-size: 1px; width: 36pt">&#160;</font><font style="font-size: 12pt;">If any Participant shall, in connection with an Award, make an election pursuant to Section 83(b) of the Code (whereby the Participant elects to include in gross income in the year of the transfer the amount specified in
          Section 83(b) of the Code), then such Participant shall notify the Company of such election within ten (10) days of the filing of such election with the Internal Revenue Service.</font></div>
      <div style="text-align: justify; text-indent: 36pt; margin-bottom: 12pt;"><font style="font-size: 12pt;">(b)</font><font id="TRGRRTFtoHTMLTab" style="display: inline-block; text-indent: 0px; font-size: 1px; width: 36pt">&#160;</font><font style="font-size: 12pt;">If any Participant shall dispose of shares of Company Common Stock issued pursuant to the exercise of an Incentive Stock Option under the circumstances described in Section 421(b) of the Code (whereby the Participant
          makes a disqualifying disposition of the shares before expiration of the applicable holding periods), then such Participant shall notify the Company of such disqualifying disposition within ten (10) days of the disposition.</font></div>
      <div id="DSPFPageBreakArea" style="clear: both; margin-top: 10pt; margin-bottom: 10pt;">
        <div style="text-align: center;" id="DSPFPageNumberArea"><font style="font-size: 8pt; font-weight: normal; font-style: normal; font-family: 'Times New Roman',Times,serif;" id="DSPFPageNumber">8</font></div>
        <div id="DSPFPageBreak" style="page-break-after:always;">
          <hr noshade="noshade" style="margin: 4px 0px; width: 100%; border-width: 0; height: 2px; color: #000000; background-color: #000000; clear: both;"></div>
      </div>
      <div style="margin-bottom: 8pt;"><br>
      </div>
      <div style="text-align: justify; margin-bottom: 12pt;"><font style="font-size: 12pt;">14.</font><font id="TRGRRTFtoHTMLTab" style="display: inline-block; text-indent: 0px; font-size: 1px; width: 36pt">&#160;</font><font style="font-size: 12pt;"><u>Limits
            of Liability</u>.</font></div>
      <div style="text-align: justify; text-indent: 36pt; margin-bottom: 12pt;"><font style="font-size: 12pt;">(a)</font><font id="TRGRRTFtoHTMLTab" style="display: inline-block; text-indent: 0px; font-size: 1px; width: 36pt">&#160;</font><font style="font-size: 12pt;">Any liability of the Company to any Participant with respect to an Award shall be based solely upon the contractual obligations created by the Plan and the applicable Award Agreement.</font></div>
      <div style="text-align: justify; text-indent: 36pt; margin-bottom: 12pt;"><font style="font-size: 12pt;">(b)</font><font id="TRGRRTFtoHTMLTab" style="display: inline-block; text-indent: 0px; font-size: 1px; width: 36pt">&#160;</font><font style="font-size: 12pt;">Neither the Company, nor any member of the Board or the Committee, nor any other person participating in the determination of any question under the Plan or the interpretation, administration or application of the Plan,
          shall have any liability to any party for any action taken or not taken, in good faith, under the Plan.</font></div>
      <div style="text-align: justify; margin-bottom: 12pt;"><font style="font-size: 12pt;">15.</font><font id="TRGRRTFtoHTMLTab" style="display: inline-block; text-indent: 0px; font-size: 1px; width: 36pt">&#160;</font><font style="font-size: 12pt;"><u>Requirements





            of Law</u>.</font></div>
      <div style="text-align: justify; text-indent: 36pt; margin-bottom: 12pt; font-size: 12pt;">The grant of Awards and the issuance of shares of Company Common Stock upon the exercise of an Award shall be subject to all applicable laws, rules and
        regulations, and to such approvals by any governmental agencies as may be required.</div>
      <div style="text-align: justify; margin-bottom: 12pt;"><font style="font-size: 12pt;">16.</font><font id="TRGRRTFtoHTMLTab" style="display: inline-block; text-indent: 0px; font-size: 1px; width: 36pt">&#160;</font><font style="font-size: 12pt;"><u>Governing





            Law</u>.</font></div>
      <div style="text-align: justify; text-indent: 36pt; margin-bottom: 12pt; font-size: 12pt;">The Plan, and all Award Agreements hereunder, shall be construed pursuant to and in accordance with the laws of the State of Connecticut.&#160; The parties to the
        Plan and each Award Agreement agree that the state and federal courts of Connecticut shall have jurisdiction over any suit, action or proceeding arising out of, or in any way related to, the Plan or any Award Agreement.&#160; The parties waive, to the
        fullest extent permitted by law, any objection which any of them may have to the venue of any such suit, action or proceeding brought in such courts, and any claim that such suit, action or proceeding brought in such courts has been brought in an
        inconvenient forum.&#160;&#160;In the event that any party shall not have appointed an agent for service of process in Connecticut, the party agrees that it may be served with process by registered or certified mail, return receipt requested, to the party at
        its respective address as reflected on the records of the Company.&#160; All notices shall be deemed to have been given as of the date so delivered or mailed.</div>
      <div style="text-align: justify; margin-bottom: 12pt;"><font style="font-size: 12pt;">17.</font><font id="TRGRRTFtoHTMLTab" style="display: inline-block; text-indent: 0px; font-size: 1px; width: 36pt">&#160;</font><font style="font-size: 12pt;"><u>Effective





            Date</u>.&#160;The Plan shall be effective as of the Approval Date.</font></div>
      <div style="text-align: justify; text-indent: 36pt; margin-bottom: 12pt; font-size: 12pt;">IN WITNESS WHEREOF, the undersigned has executed this Plan on behalf of the Company as of February 19,<font style="font-weight: bold;">&#160;</font>2020 (the date
        of the Plan&#8217;s adoption by the Board).</div>
      <div style="text-align: justify; font-size: 12pt;">&#160;</div>
      <br>
      <table cellspacing="0" cellpadding="0" id="zf86d0a9a968940bfb5fbe6d7b03d3991" style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; width: 100%; text-align: left; color: #000000;">

          <tr>
            <td style="width: 29.04%; vertical-align: top;">&#160;</td>
            <td style="width: 21.12%; vertical-align: top;">&#160;</td>
            <td style="width: 49.84%; vertical-align: top; font-weight: bold;">
              <div style="text-align: justify; font-size: 12pt;">THE EASTERN COMPANY</div>
            </td>
          </tr>
          <tr>
            <td style="width: 29.04%; vertical-align: top;">
              <div style="text-align: justify; font-family: 'Times New Roman',Times,serif; font-size: 12pt; font-weight: normal;">Witness:</div>
            </td>
            <td style="width: 21.12%; vertical-align: top;">&#160;</td>
            <td style="width: 49.84%; vertical-align: top;">&#160;</td>
          </tr>
          <tr>
            <td style="width: 29.04%; vertical-align: top; font-weight: normal;">&#160;</td>
            <td style="width: 21.12%; vertical-align: top;">&#160;</td>
            <td style="width: 49.84%; vertical-align: top;">
              <div style="text-align: justify; font-size: 12pt;">By:</div>
            </td>
          </tr>
          <tr>
            <td style="width: 29.04%; vertical-align: top;">
              <div style="text-align: justify; font-family: 'Times New Roman',Times,serif; font-size: 12pt; font-weight: normal;">/s/___________________________</div>
            </td>
            <td style="width: 21.12%; vertical-align: top;">&#160;</td>
            <td style="width: 49.84%; vertical-align: top;">
              <div style="text-align: justify; font-size: 12pt;">Name:</div>
            </td>
          </tr>
          <tr>
            <td style="width: 29.04%; vertical-align: top;">
              <div style="text-align: justify; font-family: 'Times New Roman',Times,serif; font-size: 12pt; font-weight: normal;">Its Secretary</div>
            </td>
            <td style="width: 21.12%; vertical-align: top;">&#160;</td>
            <td style="width: 49.84%; vertical-align: top;">
              <div style="text-align: justify; font-size: 12pt;">Title:</div>
            </td>
          </tr>

      </table>
    </div>
    <div><br>
    </div>
    <div><br>
    </div>
    <div id="DSPFPageBreakArea" style="clear: both; margin-top: 10pt; margin-bottom: 10pt;">
      <div style="text-align: center;" id="DSPFPageNumberArea"><font style="font-size: 8pt; font-weight: normal; font-style: normal; font-family: 'Times New Roman',Times,serif;" id="DSPFPageNumber">9</font></div>
      <div id="DSPFPageBreak" style="page-break-after: always;">
        <hr noshade="noshade" style="border-width: 0px; clear: both; margin: 4px 0px; width: 100%; height: 2px; color: #000000; background-color: #000000;"></div>
    </div>
    <div>
      <div>
        <div>
          <div>
            <div><br>
            </div>
            <div><br>
            </div>
            <div>
              <table cellspacing="0" cellpadding="0" id="z350ed6b4dbed47f7857980f96109bd90" style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; width: 100%; text-align: left; color: #000000;">

                  <tr>
                    <td style="width: 36.14%; vertical-align: top;">&#160;</td>
                    <td style="width: 7.92%; vertical-align: top;">&#160;</td>
                    <td style="width: 55.95%; vertical-align: top;">
                      <div style="font-size: 12pt; font-weight: bold;">VOTE BY INTERNET&#160; www.proxyvote.com</div>
                    </td>
                  </tr>
                  <tr>
                    <td style="width: 36.14%; vertical-align: top;">&#160;</td>
                    <td style="width: 7.92%; vertical-align: top;">&#160;</td>
                    <td style="width: 55.95%; vertical-align: top;">
                      <div style="text-align: justify; font-size: 12pt;">Use the Internet to transmit your voting instructions and for electronic delivery of</div>
                    </td>
                  </tr>
                  <tr>
                    <td style="width: 36.14%; vertical-align: top;">&#160;</td>
                    <td style="width: 7.92%; vertical-align: top;">&#160;</td>
                    <td style="width: 55.95%; vertical-align: top;">
                      <div style="text-align: justify; font-size: 12pt;">information. Vote by 11:59 P.M. ET on 04/28/2020. Have your proxy card in hand when</div>
                    </td>
                  </tr>
                  <tr>
                    <td style="width: 36.14%; vertical-align: top;">&#160;</td>
                    <td style="width: 7.92%; vertical-align: top;">&#160;</td>
                    <td style="width: 55.95%; vertical-align: top;">
                      <div style="text-align: justify; font-size: 12pt;">you access the web site and follow the instructions to obtain your records and to create</div>
                    </td>
                  </tr>
                  <tr>
                    <td style="width: 36.14%; vertical-align: top;">&#160;</td>
                    <td style="width: 7.92%; vertical-align: top;">&#160;</td>
                    <td style="width: 55.95%; vertical-align: top;">
                      <div style="text-align: justify; font-size: 12pt;">an electronic voting instruction form.</div>
                    </td>
                  </tr>
                  <tr>
                    <td style="width: 36.14%; vertical-align: top;">&#160;</td>
                    <td style="width: 7.92%; vertical-align: top;">&#160;</td>
                    <td style="width: 55.95%; vertical-align: top;">&#160;</td>
                  </tr>
                  <tr>
                    <td style="width: 36.14%; vertical-align: top;">&#160;</td>
                    <td style="width: 7.92%; vertical-align: top;">&#160;</td>
                    <td style="width: 55.95%; vertical-align: top;">
                      <div style="font-size: 12pt; font-weight: bold;">ELECTRONIC DELIVERY OF FUTURE PROXY MATERIALS</div>
                    </td>
                  </tr>
                  <tr>
                    <td style="width: 36.14%; vertical-align: top;">&#160;</td>
                    <td style="width: 7.92%; vertical-align: top;">&#160;</td>
                    <td style="width: 55.95%; vertical-align: top;">
                      <div style="text-align: justify; font-size: 12pt;">If you would like to reduce the costs incurred by our company in mailing proxy</div>
                    </td>
                  </tr>
                  <tr>
                    <td style="width: 36.14%; vertical-align: top;">
                      <div style="text-align: center; font-family: 'Times New Roman',Times,serif; font-size: 12pt;"><font style="font-weight: bold;">The Eastern Company</font><font style="font-family: 'Times New Roman',serif; font-size: 1pt; font-weight: bold;">&#160;&#160;&#160;&#160;&#160;</font>&#160;</div>
                    </td>
                    <td style="width: 7.92%; vertical-align: top;">&#160;</td>
                    <td style="width: 55.95%; vertical-align: top;">
                      <div style="font-size: 12pt;">materials, you can consent to receiving all future proxy statements, proxy cards</div>
                    </td>
                  </tr>
                  <tr>
                    <td style="width: 36.14%; vertical-align: top;">
                      <div style="text-align: center; font-family: 'Times New Roman',Times,serif; font-size: 12pt;"><font style="font-weight: bold;">112 Bridge Street</font><font style="font-family: 'Times New Roman',serif; font-size: 1pt; font-weight: bold;">&#160;&#160;&#160;&#160;&#160;</font>&#160;</div>
                    </td>
                    <td style="width: 7.92%; vertical-align: top;">&#160;</td>
                    <td style="width: 55.95%; vertical-align: top;">
                      <div style="text-align: justify; font-size: 12pt;"><font style="font-family: 'Times New Roman', serif; font-size: 1pt;">&#160;&#160;&#160;</font>and annual reports electronically via e-mail or the
                        Internet. To sign up for</div>
                    </td>
                  </tr>
                  <tr>
                    <td style="width: 36.14%; vertical-align: top;">
                      <div style="text-align: center; font-family: 'Times New Roman',Times,serif; font-size: 12pt; font-weight: bold; text-indent: -9pt; margin-left: 9pt;">Naugatuck, CT&#160; 06770-0460<font style="font-family: 'Times New Roman',serif; font-size: 1pt;">&#160;&#160;&#160;&#160;</font></div>
                    </td>
                    <td style="width: 7.92%; vertical-align: top;">&#160;</td>
                    <td style="width: 55.95%; vertical-align: top;">
                      <div style="text-align: justify; font-size: 12pt;">electronic delivery, please follow the instructions above to vote using the Internet</div>
                    </td>
                  </tr>
                  <tr>
                    <td style="width: 36.14%; vertical-align: top;">&#160;</td>
                    <td style="width: 7.92%; vertical-align: top;">&#160;</td>
                    <td style="width: 55.95%; vertical-align: top;">
                      <div style="text-align: justify; font-size: 12pt;">and, when prompted, indicate that you agree to receive or access proxy materials</div>
                    </td>
                  </tr>
                  <tr>
                    <td style="width: 36.14%; vertical-align: top;">&#160;</td>
                    <td style="width: 7.92%; vertical-align: top;">&#160;</td>
                    <td style="width: 55.95%; vertical-align: top;">
                      <div style="text-align: justify; font-size: 12pt;">electronically in future years.</div>
                    </td>
                  </tr>
                  <tr>
                    <td style="width: 36.14%; vertical-align: top;">&#160;</td>
                    <td style="width: 7.92%; vertical-align: top;">&#160;</td>
                    <td style="width: 55.95%; vertical-align: top;">&#160;</td>
                  </tr>
                  <tr>
                    <td style="width: 36.14%; vertical-align: top;">&#160;</td>
                    <td style="width: 7.92%; vertical-align: top;">&#160;</td>
                    <td style="width: 55.95%; vertical-align: top;">
                      <div style="font-size: 12pt; font-weight: bold;">VOTE BY PHONE - 1-800-690-6903</div>
                    </td>
                  </tr>
                  <tr>
                    <td style="width: 36.14%; vertical-align: top;">&#160;</td>
                    <td style="width: 7.92%; vertical-align: top;">&#160;</td>
                    <td style="width: 55.95%; vertical-align: top;">
                      <div style="text-align: justify; font-size: 12pt;">Use any touch-tone telephone to transmit your voting instructions. Vote by 11:59</div>
                    </td>
                  </tr>
                  <tr>
                    <td style="width: 36.14%; vertical-align: top;">&#160;</td>
                    <td style="width: 7.92%; vertical-align: top;">&#160;</td>
                    <td style="width: 55.95%; vertical-align: top;">
                      <div style="text-align: justify; font-size: 12pt;">P.M. ET on 04/28/2020. Have your proxy card in hand when you access the web</div>
                    </td>
                  </tr>
                  <tr>
                    <td style="width: 36.14%; vertical-align: top;">&#160;</td>
                    <td style="width: 7.92%; vertical-align: top;">&#160;</td>
                    <td style="width: 55.95%; vertical-align: top;">
                      <div style="text-align: justify; font-size: 12pt;">site and follow the instructions.</div>
                    </td>
                  </tr>
                  <tr>
                    <td style="width: 36.14%; vertical-align: top;">&#160;</td>
                    <td style="width: 7.92%; vertical-align: top;">&#160;</td>
                    <td style="width: 55.95%; vertical-align: top;">&#160;</td>
                  </tr>
                  <tr>
                    <td style="width: 36.14%; vertical-align: top;">&#160;</td>
                    <td style="width: 7.92%; vertical-align: top;">&#160;</td>
                    <td style="width: 55.95%; vertical-align: top;">
                      <div style="text-align: justify; font-size: 12pt; font-weight: bold;">VOTE BY MAIL</div>
                    </td>
                  </tr>
                  <tr>
                    <td style="width: 36.14%; vertical-align: top;">&#160;</td>
                    <td style="width: 7.92%; vertical-align: top;">&#160;</td>
                    <td style="width: 55.95%; vertical-align: top;">
                      <div style="text-align: justify; font-size: 12pt;">Mark, sign and date your proxy card and return it in the postage-paid envelope we have</div>
                    </td>
                  </tr>
                  <tr>
                    <td style="width: 36.14%; vertical-align: top;">&#160;</td>
                    <td style="width: 7.92%; vertical-align: top;">&#160;</td>
                    <td style="width: 55.95%; vertical-align: top;">
                      <div style="text-align: justify; font-size: 12pt;">provided or return it to Vote Processing, c/o Broadridge, 51 Mercedes Way, Edgewood,</div>
                    </td>
                  </tr>
                  <tr>
                    <td style="width: 36.14%; vertical-align: top;">&#160;</td>
                    <td style="width: 7.92%; vertical-align: top;">&#160;</td>
                    <td style="width: 55.95%; vertical-align: top;">
                      <div style="text-align: justify; font-size: 12pt;">NY 11717.</div>
                    </td>
                  </tr>

              </table>
            </div>
            <div><br>
            </div>
            <div style="MARGIN-TOP: 0.15pt"><br>
            </div>
            <br>
            <div style="TEXT-ALIGN: justify"> <br>
              <br>
            </div>
            <div style="MARGIN-BOTTOM: 0.05pt"><br>
            </div>
            <div style="MARGIN-TOP: 0.05pt">
              <div>TO VOTE, MARK BLOCKS BELOW IN BLUE OR BLACK INK AS FOLLOWS:&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; KEEP THIS PORTION FOR YOUR RECORDS</div>
              <div>__________________________________________________________________________________________________________________________</div>
              <div>DETACH AND RETURN THIS PORTION ONLY</div>
              <div><br>
                &#160;</div>
              &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; THIS PROXY CARD IS VALID ONLY WHEN SIGNED AND DATED.
              <div><br>
              </div>
              <div><br>
              </div>
              <div style="font-weight: bold; margin-left: 144pt; text-indent: -144pt;">The Board of Directors recommends you vote FOR ALL the following:</div>
              <div><br>
              </div>
              <div style="margin-left: 144pt; text-indent: 36pt;"><font style="font-weight: bold;">For</font><font style="FONT-SIZE: 1px; WIDTH: 12pt; DISPLAY: inline-block">&#160;</font><font style="font-weight: bold;"> Withhold</font><font style="FONT-SIZE: 1px; WIDTH: 12pt; DISPLAY: inline-block">&#160;</font><font style="font-weight: bold;">&#160;</font><font style="font-weight: bold;">For All</font><font style="FONT-SIZE: 1px; WIDTH: 12pt; DISPLAY: inline-block">&#160;</font><font style="FONT-SIZE: 1px; WIDTH: 12pt; DISPLAY: inline-block">&#160;</font>To withhold authority to vote for any</div>
              <div style="margin-left: 144pt; text-indent: 36pt;"><font style="font-weight: bold;">All </font><font style="FONT-SIZE: 1px; WIDTH: 12pt; DISPLAY: inline-block">&#160;</font><font style="font-weight: bold;">&#160; &#160;&#160; All </font><font style="FONT-SIZE: 1px; WIDTH: 12pt; DISPLAY: inline-block">&#160;</font><font style="font-weight: bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160; Except</font><font style="FONT-SIZE: 1px; WIDTH: 12pt; DISPLAY: inline-block">&#160;</font><font style="FONT-SIZE: 1px; WIDTH: 12pt; DISPLAY: inline-block">&#160;</font> individual nominee(s), mark "For Al</div>
              <div style="margin-left: 144pt; text-indent: 36pt;">&#160;&#160;&#160;<font style="FONT-SIZE: 1px; WIDTH: 9pt; DISPLAY: inline-block">&#160;</font><font style="FONT-SIZE: 1px; WIDTH: 9pt; DISPLAY: inline-block">&#160;</font><font style="FONT-SIZE: 1px; WIDTH: 9pt; DISPLAY: inline-block">&#160;</font><font style="FONT-SIZE: 1px; WIDTH: 9pt; DISPLAY: inline-block">&#160;</font><font style="FONT-SIZE: 1px; WIDTH: 9pt; DISPLAY: inline-block">&#160;</font><font style="FONT-SIZE: 1px; WIDTH: 9pt; DISPLAY: inline-block">&#160;</font>
                &#160; &#160; &#160; &#160; &#160; &#160; &#160; &#160; &#160; &#160; &#160; &#160; &#160; &#160; &#160; &#160; Except" and write the number(s) of the</div>
              <div><font style="font-weight: bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</font><font style="FONT-SIZE: 1px; WIDTH: 12pt; DISPLAY: inline-block">&#160;</font><font style="FONT-SIZE: 1px; WIDTH: 12pt; DISPLAY: inline-block">&#160;</font><font style="FONT-SIZE: 1px; WIDTH: 12pt; DISPLAY: inline-block">&#160;</font><font style="FONT-SIZE: 1px; WIDTH: 12pt; DISPLAY: inline-block">&#160;</font>&#160;&#160;&#160; [ ]&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; [ ]<font style="FONT-SIZE: 1px; WIDTH: 12pt; DISPLAY: inline-block"> &#160;</font><font style="FONT-SIZE: 1px; WIDTH: 9pt; DISPLAY: inline-block">&#160;</font><font style="FONT-SIZE: 1px; WIDTH: 9pt; DISPLAY: inline-block">&#160;</font>&#160;<font style="FONT-SIZE: 1px; WIDTH: 9pt; DISPLAY: inline-block"></font> [ ]<font style="FONT-SIZE: 1px; WIDTH: 9pt; DISPLAY: inline-block">&#160;</font><font style="FONT-SIZE: 1px; WIDTH: 9pt; DISPLAY: inline-block">&#160;</font><font style="FONT-SIZE: 1px; WIDTH: 9pt; DISPLAY: inline-block">&#160;</font><font style="FONT-SIZE: 1px; WIDTH: 9pt; DISPLAY: inline-block">&#160;</font> nominee(s) on the line below.</div>
            </div>
          </div>
          <div>&#160;</div>
          <div>
            <div><font style="font-weight: bold;">1.&#160; </font>Election of Directors</div>
            <div><br>
            </div>
            <div style="font-weight: bold; margin-left: 9.35pt;">Nominees</div>
          </div>
          <div>&#160;&#160; </div>
          <div>&#160;&#160;&#160; 01 &#160;&#160;Fredrick D. DiSanto&#160;&#160; &#160; &#160; &#160;&#160; 02 &#160; John W. Everets<font style="FONT-SIZE: 1px; WIDTH: 9pt; DISPLAY: inline-block">&#160;</font>&#160;&#160; 03&#160; &#160;Charles W. Henry&#160;&#160;&#160;&#160;&#160;&#160;&#160; 04&#160; &#160;Michael A. McManus Jr. <font style="FONT-SIZE: 1px; WIDTH: 9pt; DISPLAY: inline-block">&#160;</font></div>
          <div><font style="FONT-SIZE: 1px; WIDTH: 9pt; DISPLAY: inline-block"></font>05 &#160; James A. Mitarotonda &#160; &#160; &#160; 06&#160; &#160;Peggy B. Scott&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; 07&#160; &#160;August M. Vlak</div>
          <div>
            <div>&#160;</div>
            <div>&#160;</div>
            <div>&#160;</div>
            <div><font style="font-weight: bold;">The Board of Directors recommends you vote FOR proposals 2 and
                3.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font style="font-size: 1px; width: 12pt; font-weight: bold;">&#160;</font></div>
          </div>
          <div>
            <div><br>
            </div>
            <div>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <br>
              <div style="font-weight: bold; text-indent: 360pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; For&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Against&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; &#160;Abstain</div>
              <br>
            </div>
            <div><font style="font-weight: bold;">2. Approve and adopt The Eastern Company 2020 Stock Incentive Plan.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</font><font style="font-weight: bold;"> [ ]<font style="FONT-SIZE: 1px; WIDTH: 12pt; DISPLAY: inline-block">&#160;</font>&#160; &#160;<font style="FONT-SIZE: 1px; WIDTH: 9pt; DISPLAY: inline-block">&#160;</font><font style="FONT-SIZE: 1px; WIDTH: 9pt; DISPLAY: inline-block">&#160;</font><font style="FONT-SIZE: 1px; WIDTH: 9pt; DISPLAY: inline-block">&#160;</font>&#160;
                [ ]<font style="FONT-SIZE: 1px; WIDTH: 12pt; DISPLAY: inline-block">&#160;</font>&#160;<font style="FONT-SIZE: 1px; WIDTH: 9pt; DISPLAY: inline-block">&#160;</font><font style="FONT-SIZE: 1px; WIDTH: 9pt; DISPLAY: inline-block">&#160;</font><font style="FONT-SIZE: 1px; WIDTH: 9pt; DISPLAY: inline-block">&#160;</font><font style="FONT-SIZE: 1px; WIDTH: 9pt; DISPLAY: inline-block">&#160;</font>&#160; [ ] </font></div>
            <div><br>
            </div>
            <div><br>
            </div>
            <br>
            <div style="font-weight: bold; text-indent: 360pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; For&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Against&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; &#160;Abstain</div>
            <div><br>
            </div>
            <div><font style="font-weight: bold;">3.&#160; Advisory vote to approve the compensation of the named executive officers. </font><font style="FONT-SIZE: 1px; WIDTH: 12pt; DISPLAY: inline-block">&#160;</font><font style="FONT-SIZE: 1px; WIDTH: 12pt; DISPLAY: inline-block">&#160;</font><font style="FONT-SIZE: 1px; WIDTH: 12pt; DISPLAY: inline-block">&#160;</font>&#160;<font style="FONT-SIZE: 1px; WIDTH: 9pt; DISPLAY: inline-block">&#160;</font><font style="FONT-SIZE: 1px; WIDTH: 9pt; DISPLAY: inline-block">&#160;</font><font style="FONT-SIZE: 1px; WIDTH: 9pt; DISPLAY: inline-block">&#160;</font><font style="FONT-SIZE: 1px; WIDTH: 9pt; DISPLAY: inline-block">&#160;</font> [ ]<font style="FONT-SIZE: 1px; WIDTH: 12pt; DISPLAY: inline-block">&#160;</font>&#160; &#160;<font style="FONT-SIZE: 1px; WIDTH: 9pt; DISPLAY: inline-block">&#160;</font><font style="FONT-SIZE: 1px; WIDTH: 9pt; DISPLAY: inline-block">&#160;</font><font style="FONT-SIZE: 1px; WIDTH: 9pt; DISPLAY: inline-block">&#160;</font>&#160; [ ]<font style="FONT-SIZE: 1px; WIDTH: 12pt; DISPLAY: inline-block">&#160;</font>&#160;<font style="FONT-SIZE: 1px; WIDTH: 9pt; DISPLAY: inline-block">&#160;</font><font style="FONT-SIZE: 1px; WIDTH: 9pt; DISPLAY: inline-block">&#160;</font><font style="FONT-SIZE: 1px; WIDTH: 9pt; DISPLAY: inline-block">&#160;</font><font style="FONT-SIZE: 1px; WIDTH: 9pt; DISPLAY: inline-block">&#160;</font>&#160; [ ]</div>
            <div><br>
              &#160;</div>
          </div>
          <div>
            <div style="font-weight: bold;">&#160;</div>
            <div style="font-weight: bold;"><font style="FONT-SIZE: 1px; WIDTH: 9pt; DISPLAY: inline-block">&#160;</font><font style="FONT-SIZE: 1px; WIDTH: 9pt; DISPLAY: inline-block">&#160;</font><font style="FONT-SIZE: 1px; WIDTH: 9pt; DISPLAY: inline-block">&#160;</font><font style="FONT-SIZE: 1px; WIDTH: 9pt; DISPLAY: inline-block">&#160;</font><font style="FONT-SIZE: 1px; WIDTH: 9pt; DISPLAY: inline-block">&#160;</font><font style="FONT-SIZE: 1px; WIDTH: 9pt; DISPLAY: inline-block">&#160;</font><font style="FONT-SIZE: 1px; WIDTH: 9pt; DISPLAY: inline-block">&#160;</font><font style="FONT-SIZE: 1px; WIDTH: 9pt; DISPLAY: inline-block">&#160;</font><font style="FONT-SIZE: 1px; WIDTH: 9pt; DISPLAY: inline-block">&#160;</font><font style="FONT-SIZE: 1px; WIDTH: 9pt; DISPLAY: inline-block">&#160;</font><font style="FONT-SIZE: 1px; WIDTH: 9pt; DISPLAY: inline-block">&#160;</font><font style="FONT-SIZE: 1px; WIDTH: 9pt; DISPLAY: inline-block">&#160;</font><font style="FONT-SIZE: 1px; WIDTH: 9pt; DISPLAY: inline-block">&#160;</font><font style="FONT-SIZE: 1px; WIDTH: 9pt; DISPLAY: inline-block">&#160;</font><font style="FONT-SIZE: 1px; WIDTH: 9pt; DISPLAY: inline-block">&#160;</font><font style="FONT-SIZE: 1px; WIDTH: 9pt; DISPLAY: inline-block">&#160;</font><font style="FONT-SIZE: 1px; WIDTH: 9pt; DISPLAY: inline-block">&#160;</font><font style="FONT-SIZE: 1px; WIDTH: 9pt; DISPLAY: inline-block">&#160;</font><font style="FONT-SIZE: 1px; WIDTH: 9pt; DISPLAY: inline-block">&#160;</font><font style="FONT-SIZE: 1px; WIDTH: 9pt; DISPLAY: inline-block">&#160;</font><font style="FONT-SIZE: 1px; WIDTH: 9pt; DISPLAY: inline-block">&#160;</font><font style="FONT-SIZE: 1px; WIDTH: 9pt; DISPLAY: inline-block">&#160;</font><font style="FONT-SIZE: 1px; WIDTH: 9pt; DISPLAY: inline-block">&#160;</font><font style="FONT-SIZE: 1px; WIDTH: 9pt; DISPLAY: inline-block">&#160;</font><font style="FONT-SIZE: 1px; WIDTH: 9pt; DISPLAY: inline-block">&#160;</font><font style="FONT-SIZE: 1px; WIDTH: 9pt; DISPLAY: inline-block">&#160;</font><font style="FONT-SIZE: 1px; WIDTH: 9pt; DISPLAY: inline-block">&#160;</font><font style="FONT-SIZE: 1px; WIDTH: 9pt; DISPLAY: inline-block">&#160;</font><font style="FONT-SIZE: 1px; WIDTH: 9pt; DISPLAY: inline-block">&#160;</font><font style="FONT-SIZE: 1px; WIDTH: 9pt; DISPLAY: inline-block">&#160;</font><font style="FONT-SIZE: 1px; WIDTH: 9pt; DISPLAY: inline-block">&#160;</font><font style="FONT-SIZE: 1px; WIDTH: 9pt; DISPLAY: inline-block">&#160;</font><font style="FONT-SIZE: 1px; WIDTH: 9pt; DISPLAY: inline-block">&#160;</font><font style="FONT-SIZE: 1px; WIDTH: 9pt; DISPLAY: inline-block">&#160;</font><font style="FONT-SIZE: 1px; WIDTH: 9pt; DISPLAY: inline-block">&#160;</font><font style="FONT-SIZE: 1px; WIDTH: 9pt; DISPLAY: inline-block">&#160;</font><font style="FONT-SIZE: 1px; WIDTH: 9pt; DISPLAY: inline-block">&#160;</font><font style="FONT-SIZE: 1px; WIDTH: 9pt; DISPLAY: inline-block">&#160;</font><font style="FONT-SIZE: 1px; WIDTH: 9pt; DISPLAY: inline-block">&#160;</font><font style="FONT-SIZE: 1px; WIDTH: 9pt; DISPLAY: inline-block">&#160;</font><font style="FONT-SIZE: 1px; WIDTH: 9pt; DISPLAY: inline-block">&#160;</font><font style="FONT-SIZE: 1px; WIDTH: 9pt; DISPLAY: inline-block">&#160;</font><font style="FONT-SIZE: 1px; WIDTH: 9pt; DISPLAY: inline-block">&#160;</font><font style="FONT-SIZE: 1px; WIDTH: 9pt; DISPLAY: inline-block">&#160;</font><font style="FONT-SIZE: 1px; WIDTH: 9pt; DISPLAY: inline-block">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>For <font style="FONT-SIZE: 1px; WIDTH: 12pt; DISPLAY: inline-block">&#160;</font><font style="FONT-SIZE: 1px; WIDTH: 9pt; DISPLAY: inline-block">&#160;</font><font style="FONT-SIZE: 1px; WIDTH: 9pt; DISPLAY: inline-block">&#160;</font>&#160; Against<font style="FONT-SIZE: 1px; WIDTH: 12pt; DISPLAY: inline-block">&#160;</font><font style="FONT-SIZE: 1px; WIDTH: 9pt; DISPLAY: inline-block">&#160;</font><font style="FONT-SIZE: 1px; WIDTH: 9pt; DISPLAY: inline-block">&#160;</font> Abstain</div>
            <div><br>
            </div>
            <div><font style="font-weight: bold;">4. &#160;</font><font style="font-weight: bold;">Ratify the appointment of the independent registered public accounting firm </font><font style="FONT-SIZE: 1px; WIDTH: 12pt; DISPLAY: inline-block">&#160;</font><font style="FONT-SIZE: 1px; WIDTH: 12pt; DISPLAY: inline-block">&#160;</font><font style="FONT-SIZE: 1px; WIDTH: 12pt; DISPLAY: inline-block">&#160;</font><font style="FONT-SIZE: 1px; WIDTH: 9pt; DISPLAY: inline-block">&#160;</font><font style="FONT-SIZE: 1px; WIDTH: 9pt; DISPLAY: inline-block">&#160;</font><font style="FONT-SIZE: 1px; WIDTH: 9pt; DISPLAY: inline-block">&#160;</font><font style="FONT-SIZE: 1px; WIDTH: 9pt; DISPLAY: inline-block">&#160;</font> [ ]<font style="FONT-SIZE: 1px; WIDTH: 12pt; DISPLAY: inline-block">&#160;</font><font style="FONT-SIZE: 1px; WIDTH: 9pt; DISPLAY: inline-block">&#160;</font><font style="FONT-SIZE: 1px; WIDTH: 9pt; DISPLAY: inline-block">&#160;</font><font style="FONT-SIZE: 1px; WIDTH: 9pt; DISPLAY: inline-block">&#160;</font>&#160;&#160;&#160;&#160;




              [ ]<font style="FONT-SIZE: 1px; WIDTH: 12pt; DISPLAY: inline-block">&#160;</font>&#160;<font style="FONT-SIZE: 1px; WIDTH: 9pt; DISPLAY: inline-block">&#160;</font><font style="FONT-SIZE: 1px; WIDTH: 9pt; DISPLAY: inline-block">&#160;</font><font style="FONT-SIZE: 1px; WIDTH: 9pt; DISPLAY: inline-block">&#160;</font><font style="FONT-SIZE: 1px; WIDTH: 9pt; DISPLAY: inline-block">&#160;</font> &#160;&#160; [ ]</div>
            <div style="font-weight: bold;">&#160;&#160;&#160;&#160;(Fiondella, Milone &amp; LaSaracina LLP) for fiscal year 2020. <br>
            </div>
            <br>
            <br>
          </div>
          <div>
            <div><font style="font-weight: bold;">NOTE: </font>Such other business as may properly come before the meeting or any adjournment thereof. Note: A vote to withhold authority</div>
            <div>to vote for any nominee(s) is treated as a vote against the nominee(s). </div>
            <div><br>
            </div>
            <div><br>
            </div>
            <div><br>
            </div>
            <div>For address change/comments, mark here.<font style="FONT-SIZE: 1px; WIDTH: 12pt; DISPLAY: inline-block">&#160;</font><font style="FONT-SIZE: 1px; WIDTH: 12pt; DISPLAY: inline-block">&#160;</font><font style="FONT-SIZE: 1px; WIDTH: 12pt; DISPLAY: inline-block">&#160;</font>[ ]</div>
            <div>(see reverse for instructions)</div>
            <div><br>
            </div>
            <div><br>
            </div>
            <div>Please sign exactly as your name(s) appear(s) hereon. When signing as</div>
            <div>attorney, executor, administrator, or other fiduciary, please give full</div>
            <div>title as such. Joint owners should each sign personally. All holders must</div>
            <div>sign. If a corporation or partnership, please sign in full corporate or</div>
            <div>partnership name, by authorized officer.</div>
            <div><br>
            </div>
            <div>____________________________________<font style="FONT-SIZE: 1px; WIDTH: 12pt; DISPLAY: inline-block">&#160;</font><font style="FONT-SIZE: 1px; WIDTH: 12pt; DISPLAY: inline-block">&#160;</font>&#160;&#160; <font style="FONT-SIZE: 1px; WIDTH: 12pt; DISPLAY: inline-block">&#160;</font>__________________________________</div>
            <div>Signature [PLEASE SIGN WITHIN BOX] Date<font style="FONT-SIZE: 1px; WIDTH: 12pt; DISPLAY: inline-block">&#160;</font><font style="FONT-SIZE: 1px; WIDTH: 12pt; DISPLAY: inline-block">&#160;</font><font style="FONT-SIZE: 1px; WIDTH: 12pt; DISPLAY: inline-block">&#160;</font><font style="FONT-SIZE: 1px; WIDTH: 12pt; DISPLAY: inline-block">&#160;</font>Signature (Joint Owners) Date</div>
            <br>
          </div>
          <div>&#160;</div>
          <div><br>
          </div>
        </div>
      </div>
      <div id="DSPFPageBreakArea" style="clear: both; margin-top: 10pt; margin-bottom: 10pt;">
        <div id="DSPFPageBreak" style="page-break-after: always;">
          <hr noshade="noshade" style="border-width: 0px; clear: both; margin: 4px 0px; width: 100%; height: 2px; color: #000000; background-color: #000000;"></div>
      </div>
      <div><br>
        <div><br>
          <div>&#160;</div>
          <div><br>
          </div>
          <div style="MARGIN-TOP: 0.4pt"><br>
          </div>
          <div style="margin-left: 7pt; margin-top: 4.7pt;"><font style="font-weight: bold;">Important Notice Regarding the Availability of Proxy Materials for the Annual Meeting: </font>The Notice &amp; Proxy Statement, Annual Report and Form 10K are
            available at <u>www.proxyvote.com</u>.</div>
          <div style="MARGIN-TOP: 0.5pt"><br>
          </div>
          <div><br>
          </div>
          <div style="MARGIN-TOP: 0.15pt"><br>
          </div>
          <div style="font-weight: bold; text-align: center; margin-left: 66.7pt; margin-right: 65.9pt;">
            <div><br>
            </div>
            <div>
              <div style="font-weight: bold; margin-left: 66.7pt; margin-right: 65.9pt;">THE EASTERN COMPANY</div>
              <div style="font-weight: bold; margin-left: 66.7pt; margin-right: 65.9pt;">&#160; 112 Bridge Street, P.O. Box 460, Naugatuck, CT 06770-0460</div>
              <div style="font-weight: bold; margin-left: 66.7pt; margin-right: 65.9pt;">THIS PROXY IS SOLICITED BY THE BOARD OF DIRECTORS OF THE COMPANY</div>
              <br>
            </div>
            <div><br>
              &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <br>
            </div>
          </div>
          <div><br>
            &#160;</div>
          <div style="text-align: justify; margin-left: 45pt; margin-right: 42.95pt;">The undersigning hereby appoints John L. Sullivan III&#160;and Nicholas A. Vlahos&#160;or any one of them, true and lawful attorneys and agents, with the power of substitution for
            the undersigned in his name, place and stead, to vote at the Annual Meeting of Shareholders of The Eastern Company on May 1, 2019 and any adjournments thereof, all shares of common stock of said Company which the undersigned would be entitled
            to vote, if then personally present, as specified on the reverse side of this card on proposals 1, 2, 3 and 4 and in their discretion on all other matters coming before the meeting.</div>
          <div style="MARGIN-TOP: 0.5pt"><br>
          </div>
          <div style="font-weight: bold; text-align: justify; margin-left: 45pt; margin-top: 0.05pt; margin-right: 42.9pt;">This proxy will be voted as directed by the shareholder but if no choice is specified, it will be voted FOR ALL of the director
            nominees named on proposal 1 and FOR proposals 2, 3 and 4.</div>
          <div><br>
          </div>
          <div><br>
          </div>
          <div><br>
          </div>
          <div><br>
          </div>
          <div style="MARGIN-TOP: 0.35pt"><br>
          </div>
          <div style="font-weight: bold; margin-left: 60pt; margin-top: 6pt;">Address change/comments:</div>
          <div><br>
          </div>
          <table cellspacing="0" cellpadding="0" style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; WIDTH: 100%">

              <tr>
                <td style="WIDTH: 100%; VERTICAL-ALIGN: top">&#160;</td>
              </tr>

          </table>
          <div><br>
          </div>
          <div><br>
          </div>
          <div><br>
          </div>
          <div style="MARGIN-TOP: 0.25pt"><br>
          </div>
          <div style="text-align: center; margin-left: 66.7pt; margin-top: 4.6pt; margin-right: 66.55pt;">(If you noted any Address Changes and/or Comments above, please mark corresponding box on the reverse side.)</div>
          <div style="MARGIN-TOP: 0.5pt"><br>
          </div>
          <div style="font-weight: bold; text-align: center; margin-left: 66.7pt; margin-right: 64.95pt;">Continued and to be signed on reverse side</div>
          <br>
        </div>
        <div><br>
        </div>
        <div><br>
        </div>
        <div>&#160;</div>
      </div>
    </div>
  </div>
</body>
</html>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
