Note H – Intangibles

Patents are recorded at cost and are amortized using the straight-line method over the lives of the patents. Technology and licenses are recorded at cost and are generally amortized on a straight-line basis over periods ranging from 5 to 17 years. Non-compete agreements and customer relationships are being amortized using the straight-line method over a period of 5 years. Trademarks are not amortized as their lives are deemed to be indefinite.

The gross carrying amount and accumulated amortization of amortizable intangible assets:

	Industrial Hardware Segment		Security Products Segment		Metal Products Segment		Total		Weighted-Average Amortization Period (Years)
2011 Gross Amount:
Patents and developed technology	$	2,795,548	$	1,034,947	$	26,382	$	3,856,877	16.0
Customer relationships		45,825		1,921,811		-		1,967,636	5.0
Non-compete agreements		30,000		90,735		-		120,735	5.0
Total Gross Intangibles	$	2,871,373	$	3,047,493	$	26,382	$	5,945,248	12.0

2011 Accumulated Amortization:
Patents and developed technology	$	1,511,873	$	458,616	$	25,694	$	1,996,183
Customer relationships		32,078		1,822,781		-		1,854,859
Non-compete agreements		21,000		87,733		-		108,733
Total Gross Amortization	$	1,564,951	$	2,369,130	$	25,694	$	3,959,775

Net July 2, 2011 per Balance Sheet	$	1,306,422	$	678,363	$	688	$	1,985,473

	Industrial Hardware Segment		Security Products Segment		Metal Products Segment		Total		Weighted-Average Amortization Period (Years)
2010 Gross Amount:
Patents and developed technology	$	2,746,918	$	1,016,936	$	26,382	$	3,790,236	16.0
Customer relationships		45,825		1,921,811		-		1,967,636	5.0
Non-compete agreements		30,000		90,735		-		120,735	5.0
Total Gross Intangibles	$	2,822,743	$	3,029,482	$	26,382	$	5,878,607	11.9

2010 Accumulated Amortization:
Patents and developed technology	$	1,416,034	$	417,801	$	25,307	$	1,859,142
Customer relationships		27,495		1,630,581		-		1,658,076
Non-compete agreements		18,000		84,154		-		102,154
Total Gross Amortization	$	1,461,529	$	2,132,536	$	25,307	$	3,619,372

Net January 1, 2011 per Balance Sheet	$	1,361,214	$	896,946	$	1,075	$	2,259,235