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<SEC-DOCUMENT>0000950129-06-001208.txt : 20060209
<SEC-HEADER>0000950129-06-001208.hdr.sgml : 20060209
<ACCEPTANCE-DATETIME>20060209114353
ACCESSION NUMBER:		0000950129-06-001208
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		4
CONFORMED PERIOD OF REPORT:	20060208
ITEM INFORMATION:		Entry into a Material Definitive Agreement
ITEM INFORMATION:		Departure of Directors or Principal Officers; Election of Directors; Appointment of Principal Officers
ITEM INFORMATION:		Amendments to Articles of Incorporation or Bylaws; Change in Fiscal Year
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20060209
DATE AS OF CHANGE:		20060209

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			FRIEDMAN INDUSTRIES INC
		CENTRAL INDEX KEY:			0000039092
		STANDARD INDUSTRIAL CLASSIFICATION:	STEEL WORKS, BLAST FURNACES & ROLLING & FINISHING MILLS [3310]
		IRS NUMBER:				741504405
		STATE OF INCORPORATION:			TX
		FISCAL YEAR END:			0331

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-07521
		FILM NUMBER:		06591534

	BUSINESS ADDRESS:	
		STREET 1:		4001 HOMESTEAD RD
		CITY:			HOUSTON
		STATE:			TX
		ZIP:			77028
		BUSINESS PHONE:		7136729433

	MAIL ADDRESS:	
		STREET 2:		PO BOX 21147
		CITY:			HOUSTON
		STATE:			TX
		ZIP:			77226
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>h32856e8vk.htm
<DESCRIPTION>FRIEDMAN INDUSTRIES, INCORPORATED
<TEXT>
<HTML>
<HEAD>
<TITLE>e8vk</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV style="width: 100%; border-bottom: 2pt solid black; font-size: 1pt">&nbsp;</DIV>
<DIV style="width: 100%; border-bottom: 1pt solid black; font-size: 1pt">&nbsp;</DIV>






<DIV align="center" style="font-size: 14pt; margin-top: 12pt"><B>UNITED STATES SECURITIES AND EXCHANGE COMMISSION</B>
</DIV>

<DIV align="center" style="font-size: 12pt"><B>Washington, D.C. 20549</B>
</DIV>

<DIV align="center" style="font-size: 18pt; margin-top: 12pt"><B>Form&nbsp;8-K</B>
</DIV>

<DIV align="center" style="font-size: 12pt; margin-top: 12pt"><B>CURRENT REPORT</B></DIV>

<DIV align="center" style="font-size: 12pt"><B>Pursuant to Section&nbsp;13 or 15(d) of the Securities Exchange Act of 1934</B></DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><B>Date of Report (Date of earliest event reported): February&nbsp;8, 2006</B></DIV>

<DIV align="center" style="font-size: 24pt; margin-top: 12pt"><B>Friedman Industries, Incorporated</B>
</DIV>

<DIV align="center" style="font-size: 10pt">(Exact name of registrant as specified in its charter)</DIV>


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="31%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="31%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="31%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="center" valign="top"><B>Texas</B><BR>
(State or other jurisdiction<BR>
of incorporation)
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>1-07521</B><BR>
(Commission File Number)
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>74-1504405</B><BR>
(IRS Employer Identification No.)</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="47%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="47%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="center" valign="top"><B>4001 Homestead Road<BR>
Houston, Texas</B><BR>
(Address of principal executive offices)
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>77028</B><BR>
(Zip Code)</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><B>713-672-9433</B><BR>
(Registrant&#146;s telephone number,<BR>
 including area code)</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy
the filing obligation of the registrant under any of the following provisions (see General
Instruction A.2. below):
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><FONT face="Wingdings">&#111;</FONT> Written communications pursuant to Rule&nbsp;425 under the Securities Act (17 CFR 230.425)
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><FONT face="Wingdings">&#111;</FONT> Soliciting material pursuant to Rule&nbsp;14a-12 under the Exchange Act (17 CFR 240.14a-12)
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><FONT face="Wingdings">&#111;</FONT> Pre-commencement communications pursuant to Rule&nbsp;14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b))
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><FONT face="Wingdings">&#111;</FONT> Pre-commencement communications pursuant to Rule&nbsp;13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c))
</DIV>


<DIV style="width: 100%; border-bottom: 1pt solid black; margin-top: 10pt; font-size: 1pt">&nbsp;</DIV>
<DIV style="width: 100%; border-bottom: 2pt solid black; font-size: 1pt">&nbsp;</DIV>






<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

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<P><HR noshade><P>

<DIV style="font-family: 'Times New Roman',Times,serif">




<!-- TOC -->
<A name="toc"><DIV align="CENTER" style="page-break-before:always"><U><B>TABLE OF CONTENTS</B></U></DIV></A>

<P><CENTER>
<TABLE border="0" width="90%" cellpadding="0" cellspacing="0">
<TR>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="76%"></TD>
</TR>
<TR><TD colspan="9"><A HREF="#000">Item&nbsp;1.01 Entry into a Material Definitive Agreement</A></TD></TR>
<TR><TD colspan="9"><A HREF="#001">Item&nbsp;5.02 Departure of Directors or Principal Officers; Election of Directors; Appointment of Principal Officers</A></TD></TR>
<TR><TD colspan="9"><A HREF="#002">Item&nbsp;5.03 Amendments to Articles of Incorporation or Bylaws; Change in Fiscal Year</A></TD></TR>
<TR><TD colspan="9"><A HREF="#003">Item&nbsp;9.01 Financial Statements and Exhibits</A></TD></TR>
<TR><TD colspan="9"><A HREF="#004"> SIGNATURES</A></TD></TR>
<TR><TD colspan="9"><A HREF="#005"> Index to Exhibits</A></TD></TR>
<TR><TD colspan="9"><A HREF="h32856exv3w1.htm">Amended and Restated By-Laws</A></TD></TR>
<TR><TD colspan="9"><A HREF="h32856exv10w1.htm">Stock Purchase Agreement</A></TD></TR>
<TR><TD colspan="9"><A HREF="h32856exv10w2.htm">Letter Agreement</A></TD></TR>
</TABLE>
</CENTER>
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>








<!-- link1 "Item&nbsp;1.01 Entry into a Material Definitive Agreement" -->
<DIV align="left"><A NAME="000"></A></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;1.01 Entry into a Material Definitive Agreement</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On February&nbsp;8, 2006, Friedman Industries, Incorporated (the &#147;Company&#148;) entered into a stock
purchase agreement with Jack Friedman, Chairman of the Board and Chief Executive Officer and a
director of the Company, pursuant to which the Company purchased 551,248 shares of common stock of
the Company from Mr.&nbsp;Friedman for an aggregate purchase price of $2,707,179, or approximately
$4.911 per share. Following such purchase, Mr.&nbsp;Friedman continues to own 551,248 shares of the
Company&#146;s common stock.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition, effective as of the close of business on February&nbsp;8, 2006, Mr.&nbsp;Friedman retired
as Chairman of the Board and Chief Executive Officer and as a full-time employee of the Company.
The Company has agreed to continue to provide Mr.&nbsp;Friedman office facilities and secretarial
assistance for his future use.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Copies of the stock purchase agreement and letter agreement regarding Mr.&nbsp;Friedman&#146;s
retirement and the Company&#146;s provision of such office facilities and assistance are attached hereto
as Exhibits 10.1 and 10.2 and are incorporated herein by reference.
</DIV>
<!-- link1 "Item&nbsp;5.02 Departure of Directors or Principal Officers; Election of Directors; Appointment of Principal Officers" -->
<DIV align="left"><A NAME="001"></A></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;5.02 Departure of Directors or Principal Officers; Election of Directors; Appointment of
Principal Officers</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Effective as of the close of business on February&nbsp;8, 2006, Jack Friedman resigned from his
position as Chairman of the Board and Chief Executive Officer of the Company and retired as a
full-time employee of the Company. Mr.&nbsp;Friedman will continue to serve the Company as a director.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Board of Directors elected William E. Crow, President of the Company, to serve in the
additional capacity of Chief Executive Officer of the Company. The Board of Directors did not
appoint a successor Chairman of the Board at this time.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;William E. Crow, age 59, has been the President and Chief Operating Officer of the Company
since 1995 and has been a director of the Company since 1998. Prior thereto, Mr.&nbsp;Crow was the Vice
President of the Company since 1981.
</DIV>
<!-- link1 "Item&nbsp;5.03 Amendments to Articles of Incorporation or Bylaws; Change in Fiscal Year" -->
<DIV align="left"><A NAME="002"></A></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;5.03 Amendments to Articles of Incorporation or Bylaws; Change in Fiscal Year.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On February&nbsp;8, 2006, the Board of Directors of the Company amended in their entirety the
following sections of the Company&#146;s By-Laws to bifurcate the positions of Chairman of the Board and
Chief Executive Officer:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;Section&nbsp;5.05. </B><B><I>Chairman of the Board. </I></B>The chairman of the board, if one is
elected, may preside, or may direct that the president to preside, at all meetings of
the shareholders and at all meetings of the directors. In the absence of the chairman
of the board, or if no chairman of the board is elected, the president shall so preside.
If the board of directors shall elect a person to be the chairman of the board and
shall designate such person the chief executive officer of the corporation, the chairman
of the board shall supervise and direct the operations of the business of the
corporation in accordance with the policies determined by the board of directors.&#148;
</DIV>

<P align="center" style="font-size: 10pt">2
</DIV>

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<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;Section&nbsp;5.07. </B><B><I>President. </I></B>Unless the Board of Directors shall have elected a
chairman of the board of directors and designated such person the chief executive
officer of the corporation, the president shall be the chief executive officer of the
corporation, supervising and directing the operations of the business of the corporation
in accordance with the policies determined by the board of directors. If the board of
directors shall have elected a person as chairman of the board and designated such
person as a chief executive officer of the corporation, the president shall be
responsible for the general supervision and control of the business and the affairs of
the corporation subject to the directions of the chairman of the board and the board of
directors. If the board of directors shall have elected a person chairman of the board
and shall designate such person the chief executive officer of the corporation, the
president, in the absence or incapacity of such chairman of the board, shall perform the
duties of that office.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A copy of the Amended and Restated By-Laws, as adopted by the Board of Directors, are attached
hereto as Exhibit&nbsp;3.1.
</DIV>
<!-- link1 "Item&nbsp;9.01 Financial Statements and Exhibits" -->
<DIV align="left"><A NAME="003"></A></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;9.01 Financial Statements and Exhibits.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(c) <I>Exhibits</I>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="6%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="91%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000">Number</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" style="border-bottom: 1px solid #000000">Description</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">3.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Amended and Restated By-Laws of Friedman Industries, Incorporated.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">10.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Stock Purchase Agreement dated February&nbsp;8, 2006, by and between Jack Friedman
and Friedman Industries, Incorporated.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">10.2
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Letter Agreement dated February&nbsp;8, 2006, between Jack Friedman and Friedman
Industries, Incorporated.</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt">3
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<!-- link1 " SIGNATURES" -->
<DIV align="left"><A NAME="004"></A></DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>SIGNATURES</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly
caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Date: February&nbsp;9, 2006
</DIV>


<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">FRIEDMAN INDUSTRIES, INCORPORATED<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="center">/s/ BEN HARPER
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center">Ben Harper&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center">Senior Vice President &#151; Finance&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt">4
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>

</TABLE>
<!-- link1 " Index to Exhibits" -->
<DIV align="left"><A NAME="005"></A></DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Index to Exhibits</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="6%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="91%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left">Exhibit No.</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">Description</TD>
</TR>
<TR><TD>&nbsp;</TD></TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">3.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Amended and Restated By-Laws of Friedman Industries, Incorporated.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">10.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Stock Purchase Agreement dated February&nbsp;8, 2006, by and between Jack Friedman
and Friedman Industries, Incorporated.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">10.2
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Letter Agreement dated February&nbsp;8, 2006, between Jack Friedman and Friedman
Industries, Incorporated.</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<P align="center" style="font-size: 10pt">
</DIV>

</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-3.1
<SEQUENCE>2
<FILENAME>h32856exv3w1.htm
<DESCRIPTION>AMENDED AND RESTATED BY-LAWS
<TEXT>
<HTML>
<HEAD>
<TITLE>exv3w1</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><B>Exhibit&nbsp;3.1</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>
FRIEDMAN INDUSTRIES, INCORPORATED</B>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><FONT style="font-variant: SMALL-CAPS"><B>Adopted on February&nbsp;8, 2006</B></FONT>

</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><DIV align="center"><DIV style="font-size: 3pt; margin-top: 16pt; width: 26%; border-top: 1px solid #000000">&nbsp;</DIV></DIV>

</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>AMENDED
AND RESTATED</B><BR>
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>BYLAWS</B>

</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><FONT style="font-variant: SMALL-CAPS"><B>Article&nbsp;I</B></FONT>

</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><FONT style="font-variant: SMALL-CAPS"><B>Offices</B></FONT>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section&nbsp;1.01. </B><B><I>Principal Place of Business. </I></B>The principal place of business of the corporation
and the office of its transfer agent or registrar may be located outside the State of Texas.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section&nbsp;1.02. </B><B><I>Other Offices. </I></B>The corporation may also have offices at such other places both
within and without the State of Texas as the board of directors may from time to time determine or
the business of the corporation may require.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><FONT style="font-variant: SMALL-CAPS"><B>Article&nbsp;II</B></FONT>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><FONT style="font-variant: SMALL-CAPS"><B>Meetings of Shareholders</B></FONT>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section&nbsp;2.01. </B><B><I>Time and Place of Meetings. </I></B>Meetings of shareholders for any purpose may be
held at such time and place within or without the State of Texas as shall be stated in the notice
of the meeting or in a duly executed waiver of notice thereof.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section&nbsp;2.02. </B><B><I>Annual Meeting. </I></B>The annual meeting of shareholders shall be held annually at
such date and time as shall be designated from time to time by the board of directors and stated in
the notice of meeting.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section&nbsp;2.03. </B><B><I>Special Meetings. </I></B>Special meetings of the shareholders for any purpose or
purposes may be called by the president and shall be called by the president or secretary at the
request in writing of a majority of the board of directors, or at the request in writing of
shareholders owning at least ten percent of all the shares entitled to vote at the meetings. A
request for a special meeting shall state the purpose or purposes of the proposed meeting, and
business transacted at any special meeting of shareholders shall be limited to the purposes stated
in the notice.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section&nbsp;2.04. </B><B><I>Notice of Meeting. </I></B>Written notice stating the place, day and hour of the
meeting and, in the case of a special meeting, the purpose or purposes for which the meeting is
called, shall be delivered not less than ten nor more than sixty days before the date of the
meeting, either personally or by mail, by or at the direction of the president, the secretary, or
the officer or persons calling the meeting, to each shareholder entitled to vote at such meeting.
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section&nbsp;2.05. </B><B><I>Quorum. </I></B>The holders of a majority of the shares issued and outstanding and
entitled to vote thereat, present in person or represented by proxy, shall constitute a quorum at
all meetings of the shareholders for the transaction of business except as otherwise provided by
statute or by the articles of incorporation. If, however, a quorum shall not be present or
represented at any meeting of the shareholders, the shareholders entitled to vote thereat, present
in person or represented by proxy, shall have power to adjourn the meeting from time to time,
without notice other than announcement at the meeting, until a quorum shall be present or
represented. After an adjournment, at any reconvened meeting any business may be transacted that
might have been transacted if the meeting had been held in accordance with the original notice
thereof, provided a quorum shall be present or represented thereat.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section&nbsp;2.06. </B><B><I>Vote Required. </I></B>With respect to any matter, other than the election of
directors, the affirmative vote of the holders of a majority of the shares entitled to vote on that
matter and represented in person or by proxy at a meeting of shareholders at which a quorum is
present, shall decide such matter, unless the matter is one upon which a different vote is required
by law or by the articles of incorporation. Unless otherwise required by law or by the articles of
incorporation, directors shall be elected by a plurality of the votes cast by the holders of shares
entitled to vote in the election of directors at a meeting of shareholders at which a quorum is
present.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section&nbsp;2.07. </B><B><I>Voting; Proxies. </I></B>Each outstanding share having voting power shall be entitled
to one vote on each matter submitted to a vote at a meeting of shareholders. Any shareholder may
vote either in person or by proxy executed in writing by the shareholder. A telegram, telex,
cablegram or similar transmission by the shareholder, or a photographic, photostatic, facsimile or
similar reproduction of a writing executed by the shareholder shall be treated as an execution in
writing for purposes of this Section&nbsp;2.07.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section&nbsp;2.08. </B><B><I>Action Without Meeting. </I></B>Any action required to, or which may, be taken at any
annual or special meeting of shareholders may be taken without a meeting, without prior notice and
without a vote, if a consent or consents in writing, setting forth the action so taken shall be
signed by the holder or holders of all the shares entitled to vote with respect to the action that
is the subject of the consent. A telegram, telex, cablegram or similar transmission by a
shareholder, or a photographic, photostatic, facsimile or similar reproduction of a writing signed
by a shareholder, shall be regarded as signed by a shareholder for purposes of this Section&nbsp;2.08.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><FONT style="font-variant: SMALL-CAPS"><B>Article&nbsp;III</B></FONT>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><FONT style="font-variant: SMALL-CAPS"><B>Directors</B></FONT>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section&nbsp;3.01. </B><B><I>Powers. </I></B>The powers of the corporation shall be exercised by or under the
authority of, and the business and affairs of the corporation shall be managed under the direction
of, the board of directors.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section&nbsp;3.02. </B><B><I>Number, Election and Term. </I></B>The number of directors that shall constitute the
whole board of directors shall be not less than one. Such number of directors shall from time to
time be fixed and determined by the directors and shall be set forth in the notice of any meeting
of shareholders held for the purpose of electing directors. The directors shall be
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">elected at the annual meeting of shareholders, except as provided in Section&nbsp;3.03 of these
bylaws, and each director elected shall hold office until his successor shall be elected and
qualify. Directors need not be residents of Texas or shareholders of the corporation.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section&nbsp;3.03. </B><B><I>Vacancies. </I></B>Any vacancy occurring in the board of directors may be filled by
election at an annual meeting or special meeting of shareholders called for that purpose or by a
majority of the remaining directors though less than a quorum of the board of directors. A
director elected to fill a vacancy shall be elected for the unexpired term of his predecessor in
office.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section&nbsp;3.04. </B><B><I>Change in Number. </I></B>The number of directors may be increased or decreased from
time to time as provided in these bylaws but no decrease shall have the effect of shortening the
term of any incumbent director. Any directorship to be filled by reason of an increase in the
number of directors may be filled by election at an annual or special meeting of shareholders or
may be filled by the board of directors for a term of office continuing only until the next
election of one or more directors by the shareholders; provided that the board of directors may not
fill more than two such directorships during the period between any two successive annual meetings
of shareholders.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section&nbsp;3.05. </B><B><I>Removal. </I></B>Any director may be removed either for or without cause at any special
meeting of shareholders duly called and held for such purpose.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section&nbsp;3.06. </B><B><I>Place of Meetings. </I></B>Meetings of the board of directors, regular or special, may
be held either within or without the State of Texas.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section&nbsp;3.07. </B><B><I>Regular Meetings. </I></B>The first meeting of each newly elected board of directors
shall be held at such time and place as shall be fixed by the vote of the shareholders at the
annual meeting and no notice of such meeting shall be necessary to the newly elected directors in
order legally to constitute the meeting, provided a quorum shall be present. In the event that the
shareholders fail to fix the time and place of such first meeting, it shall be held without notice
immediately following the annual meeting of shareholders, and at the same place, unless by the
unanimous consent of the directors then elected and serving such time or place shall be changed.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section&nbsp;3.08. </B><B><I>Notice of Regular Meetings. </I></B>Regular meetings of the board of directors may be
held upon such notice, or without notice, and at such time and at such place as shall from time to
time be determined by the board.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section&nbsp;3.09. </B><B><I>Special Meetings. </I></B>Special meetings of the board of directors may be called by
the chairman of the board of directors or the president and shall be called by the secretary on the
written request of two directors. Notice of each special meeting of the board of directors shall
be given to each director at least two days before the date of the meeting.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section&nbsp;3.10. </B><B><I>Waiver and Requirements of Notice. </I></B>Attendance of a director at any meeting
shall constitute a waiver of notice of such meeting, except where a director attends for the
express purpose of objecting to the transaction of any business on the ground that the meeting is
not lawfully called or convened. Except as may be otherwise provided by law or by the articles of
incorporation or by these bylaws, neither the business to be transacted at, nor the
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">purpose of, any regular or special meeting of the board of directors need be specified in the
notice or waiver of notice of such meeting.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section&nbsp;3.11. </B><B><I>Quorum; Vote Required. </I></B>At all meetings of the board of directors a majority of
the directors shall constitute a quorum for the transaction of business and the act of a majority
of the directors present at any meeting at which there is a quorum shall be the act of the board of
directors, unless otherwise specifically provided by law, the articles of incorporation or these
bylaws. If a quorum shall not be present at any meeting of directors, the directors present
thereat may adjourn the meeting from time to time, without notice other than announcement at the
meeting, until a quorum shall be present.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section&nbsp;3.12. </B><B><I>Committees. </I></B>The board of directors, by resolution passed by a majority of the
full board, may from time to time designate a member or members of the board to constitute
committees that shall in each case consist of one or more directors and may designate one or more
of its members as alternate members of any committee, who may, subject to any limitations imposed
by the board of directors, replace absent or disqualified members at any meeting of that committee.
Any such committee shall have and may exercise such powers, as the board may determine and specify
in the respective resolutions appointing them. A majority of all the members of any such committee
may determine its action and fix the time and place of its meetings, unless the board of directors
shall otherwise provide. The board of directors shall have power at any time to change the number,
subject as aforesaid, and members of any such committee, to fill vacancies and to discharge any
such committee.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section&nbsp;3.13. </B><B><I>Action Without Meeting. </I></B>Any action required or permitted to be taken at a
meeting of the board of directors or any committee may be taken without a meeting if a consent in
writing, setting forth the action so taken, is signed by all the members of the board of directors
or committee, as the case may be.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section&nbsp;3.14. </B><B><I>Compensation. </I></B>By resolution of the board of directors, the directors may be
paid their expenses, if any, of attendance at each meeting of the board of directors, or a meeting
of a committee thereof, and may be paid a fixed sum for attendance at each meeting of the board of
directors, or a meeting of a committee thereof, or a stated salary as director. No such payment
shall preclude any director from serving the corporation in any other capacity and receiving
compensation therefor.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><FONT style="font-variant: SMALL-CAPS"><B>Article&nbsp;IV</B></FONT>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><FONT style="font-variant: SMALL-CAPS"><B>Notices</B></FONT>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section&nbsp;4.01. </B><B><I>Form of Notice; Delivery. </I></B>Any notice to directors or shareholders shall be in
writing and shall be delivered personally or mailed to the directors or shareholders at their
respective addresses appearing on the books of the corporation. Notice by mail shall be deemed to
be given at the time when the same shall be deposited in the United States mail, postage prepaid.
Notice to directors may also be given by telegram, telex, cablegram, facsimile or other similar
transmission.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section&nbsp;4.02. </B><B><I>Waiver. </I></B>Whenever any notice is required to be given under the provisions of the
statutes or of the articles of incorporation or of these bylaws, a waiver thereof in writing
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">signed by the person or persons entitled to such notice, whether before or after the time
stated therein, shall be deemed equivalent to the giving of such notice.
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><FONT style="font-variant: SMALL-CAPS"><B>Article&nbsp;V</B></FONT>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><FONT style="font-variant: SMALL-CAPS"><B>Officers</B></FONT>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section&nbsp;5.01. </B><B><I>Officers. </I></B>The officers of the corporation shall be elected by the board of
directors and shall consist of a president and a secretary, neither of whom need be a member of the
board of directors. Two or more offices may be held by the same person.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section&nbsp;5.02. </B><B><I>Additional Officers. </I></B>The board of directors may also elect a chairman of the
board, a vice chairman of the board, an assistant president, a treasurer, and one or more vice
presidents, assistant secretaries and assistant treasurers. The board of directors may appoint
such other officers and assistant officers and agents as it shall deem necessary, who shall hold
their offices for such terms and shall have such authority and exercise such powers and perform
such duties as shall be determined from time to time by the board by resolution not inconsistent
with these bylaws.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section&nbsp;5.03. </B><B><I>Compensation. </I></B>The salaries of all officers and agents of the corporation shall
be fixed by the board of directors or at its direction. The board of directors shall have the
power to enter into contracts for the employment and compensation of officers for such terms as the
board deems advisable.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section&nbsp;5.04. </B><B><I>Term; Removal; Vacancies. </I></B>The officers of the corporation shall hold office
until their successors are elected or appointed and qualify, or until their death or until their
resignation or removal from office. Any officer elected or appointed by the board of directors may
be removed at any time by the board, but such removal shall be without prejudice to the contract
rights, if any, of the person so removed. Election or appointment of an officer or agent shall not
of itself create contract rights. Any vacancy occurring in any office of the corporation by death,
resignation, removal or otherwise shall be filled by the board of directors.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section&nbsp;5.05. </B><B><I>Chairman of the Board. </I></B>The chairman of the board, if one is elected, may
preside, or may direct that the president to preside, at all meetings of the shareholders and at
all meetings of the directors. In the absence of the chairman of the board, or if no chairman of
the board is elected, the president shall so preside. If the board of directors shall elect a
person to be the chairman of the board and shall designate such person the chief executive officer
of the corporation, the chairman of the board shall supervise and direct the operations of the
business of the corporation in accordance with the policies determined by the board of directors.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section&nbsp;5.06. </B><B><I>Vice Chairman of the Board. </I></B>The vice chairman of the board, if one is elected,
shall, in the absence or disability of the chairman of the board, perform the duties and have the
authority and exercise the powers of the chairman of the board. He shall perform such other duties
and have such other authority and powers as the board of directors may from time to time prescribe
or as the chairman of the board may from time to time delegate.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section&nbsp;5.07. </B><B><I>President. </I></B>Unless the board of directors shall have elected a chairman of the
board of directors and designated such person the chief executive officer of the corporation,
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">the president shall be the chief executive officer of the corporation, supervising and
directing the operations of the business of the corporation in accordance with the policies
determined by the board of directors. If the board of directors shall have elected a person as
chairman of the board and designated such person as a chief executive officer of the corporation,
the president shall be responsible for the general supervision and control of the business and the
affairs of the corporation subject to the directions of the chairman of the board and the board of
directors. If the board of directors shall have elected a person chairman of the board and shall
designate such person the chief executive officer of the corporation, the president, in the absence
or incapacity of such chairman of the board, shall perform the duties of that office.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section&nbsp;5.08. </B><B><I>Vice Presidents. </I></B>The vice presidents in the order of their seniority, unless
otherwise determined by the board of directors, shall, in the absence or disability of the
president, perform the duties and have the authority and exercise the powers of the president.
They shall perform such other duties and have such other authority and powers as the board of
directors may from time to time prescribe or as the president may from time to time delegate.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section&nbsp;5.09. </B><B><I>Secretary. </I></B>The secretary shall attend all meetings of the board of directors
and all meetings of shareholders and record all of the proceedings of the meetings of the board of
directors and of the shareholders in a minute book to be kept for that purpose and shall perform
like duties for the standing committees when required. He shall give, or cause to be given, notice
of all meetings of the shareholders and special meetings of the board of directors, and shall
perform such other duties as may be prescribed by the board of directors or president, under whose
supervision he shall be. He shall keep in safe custody the seal of the corporation and, when
authorized by the board of directors, shall affix the same to any instrument requiring it and, when
so affixed, it shall be attested by his signature or by the signature of an assistant secretary or
of the treasurer. The secretary shall perform such other duties and have such other powers as the
board of directors may from time to time prescribe or as the president may from time to time
delegate.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section&nbsp;5.10. </B><B><I>Assistant Secretaries. </I></B>The assistant secretaries in the order of their
seniority, unless otherwise determined by the board of directors, shall, in the absence or
disability of the secretary, perform the duties and exercise the powers of the secretary. They
shall perform such other duties and have such other powers as the board of directors may from time
to time prescribe or as the president may from time to time delegate.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section&nbsp;5.11. </B><B><I>Treasurer. </I></B>The treasurer, if one is elected, shall have custody of the
corporate funds and securities and shall keep full and accurate accounts and records of receipts,
disbursements and other transactions in books belonging to the corporation, and shall deposit all
moneys and other valuable effects in the name and to the credit of the corporation in such
depositories as may be designated from time to time by the board of directors. The treasurer shall
disburse the funds of the corporation as may be ordered by the board of directors, taking proper
vouchers for such disbursements, and shall render the president and the board of directors, when so
directed, an account of all his transactions as treasurer and of the financial condition of the
corporation. The treasurer shall perform such other duties and have such other powers as the board
of directors may from time to time prescribe or as the president may from time to time delegate.
If required by the board of directors, the treasurer shall give the corporation a bond of such
type, character and amount as the board of directors may require.
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section&nbsp;5.12. </B><B><I>Assistant Treasurers. </I></B>The assistant treasurers in the order of their seniority,
unless otherwise determined by the board of directors, shall, in the absence or disability of the
treasurer, perform the duties and exercise the powers of the treasurer. They shall perform such
other duties and have such other powers as the board of directors may from time to time prescribe
or the president may from time to time delegate.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><FONT style="font-variant: SMALL-CAPS"><B>Article&nbsp;VI</B></FONT>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><FONT style="font-variant: SMALL-CAPS"><B>Certificates Representing Shares</B></FONT>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section&nbsp;6.01. </B><B><I>Certificates. </I></B>The shares of the corporation shall be represented by
certificates signed by the president or a vice president and the secretary or an assistant
secretary of the corporation, and may be sealed with the seal of the corporation or a facsimile
thereof.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section&nbsp;6.02. </B><B><I>Facsimile Signatures. </I></B>The signatures of the president or a vice president and
the secretary or an assistant secretary upon a certificate may be facsimiles. In case any officer
who has signed or whose facsimile signature has been placed upon such certificate shall have ceased
to be such officer before such certificate is issued, it may be issued by the corporation with the
same effect as if he were such officer at the date of its issue.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section&nbsp;6.03. </B><B><I>Lost Certificates. </I></B>The board of directors may direct a new certificate to be
issued in place of any certificate theretofore issued by the corporation alleged to have been lost
or destroyed. When authorizing such issue of a new certificate, the board of directors, in its
discretion and as a condition precedent to the issuance thereof, may prescribe such terms and
conditions as it deems expedient and may require such indemnities as it deems adequate to protect
the corporation from any claim that may be made against it with respect to any such certificate
alleged to have been lost or destroyed.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section&nbsp;6.04. </B><B><I>Transfers. </I></B>Upon surrender to the corporation or the transfer agent of the
corporation of a certificate representing shares duly endorsed or accompanied by proper evidence of
succession, assignment or authority to transfer, a new certificate shall be issued to the person
entitled thereto and the old certificate canceled and the transaction recorded upon the transfer
records of the corporation.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section&nbsp;6.05. </B><B><I>Closing of Transfer Records. </I></B>For the purpose of determining shareholders (i)
entitled to notice of or to vote at any meeting of shareholders, or, after an adjournment thereof,
at any reconvened meeting, (ii)&nbsp;entitled to receive a distribution (other than a distribution
involving a purchase or redemption by the corporation of any of its own shares) or a share dividend
or (iii)&nbsp;for any other proper purpose (other than determining shareholders entitled to consent to
action by shareholders proposed to be taken without a meeting of shareholders), the board of
directors may provide that the share transfer records shall be closed for a stated period but not
to exceed, in any case, sixty days. If the share transfer records shall be closed for the purpose
of determining shareholders entitled to notice of or to vote at a meeting of shareholders, such
records shall be closed for at least ten days immediately preceding such meeting. In lieu of
closing the share transfer records, the board of directors may fix in advance a date as the record
date for any such determination of shareholders, such date in any case to be not more than sixty
days and, in the case of a meeting of shareholders, not less than ten days,
</DIV>

<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">prior to the date on which the particular action requiring such determination of shareholders,
is to be taken. If the share transfer records are not closed and no record date is fixed for the
determination of shareholders entitled to notice of or to vote at a meeting of shareholders, or
shareholders entitled to receive a distribution (other than a distribution involving a purchase or
redemption by the corporation of any of its own shares) or a share dividend, the date on which
notice of the meeting is mailed or the date on which the resolution of the board of directors
declaring such distribution or share dividend is adopted, as the case may be, shall be the record
date for such determination of shareholders. When a determination of shareholders entitled to vote
at any meeting of shareholders has been made as provided in this Section&nbsp;6.05, such determination
shall be applied after an adjournment thereof to any reconvened meeting except where the
determination has been made through the closing of the share transfer records and the stated period
of closing has expired.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section&nbsp;6.06. </B><B><I>Fixing Record Dates for Consents to Action. </I></B>Unless a record date shall have
previously been fixed or determined, whenever action by shareholders is proposed to be taken by
consent in writing without a meeting of shareholders, the board of directors may fix a record date
for the purpose of determining shareholders entitled to consent to that action which record date
shall not precede, and shall not be more than ten days after, the date upon which the resolution
fixing the record date is adopted by the board of directors. If no record date has been fixed by
the board of directors and prior action of the board of directors is not required by law, the
record date for determining shareholders entitled to consent to action in writing without a meeting
shall be the first date on which a signed written consent setting forth the action taken proposed
to be taken is delivered to the corporation in the manner required by Section&nbsp;2.08 of these bylaws.
If no record date shall have been fixed by the board of directors and prior action of the board of
directors is required by law, the record date for determining shareholders entitled to consent to
action in writing without a meeting shall be at the close of business on the date on which the
board of directors adopts a resolution taking such prior action.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section&nbsp;6.07. </B><B><I>Registered Shareholders. </I></B>Except as otherwise required by law, the corporation
shall be entitled to regard the person in whose name any shares are registered in the share
transfer records at any particular time as the owner of those shares at that time for purposes of
voting those shares, receiving distributions, share dividends or notices in respect thereof,
transferring those shares, exercising rights of dissent with respect to those shares, exercising or
waiving any preemptive right with respect to those shares, entering into agreements with respect to
those shares or giving proxies with respect to those shares. Except as otherwise required by law,
neither the corporation nor any of its officers, directors, employees or agents shall be liable for
regarding that person as the owner of those shares at that time for those purposes, regardless of
whether that person does not possess a certificate for those shares.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section&nbsp;6.08. </B><B><I>List of Shareholders. </I></B>The officer or agent having charge of the transfer books
for shares shall make, at least ten days before each meeting of shareholders, a complete list of
the shareholders entitled to vote at such meeting, arranged in alphabetical order, with the address
of each and the number of shares held by each, which list, for a period of ten days prior to such
meeting, shall be kept on file at the registered office or principal place of business of the
corporation and shall be subject to inspection by any shareholder at any time during usual business
hours. Such list shall also be produced and kept open at the time and place of the meeting and
shall be subject to the inspection of any shareholder during the whole time of the
</DIV>

<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">meeting. The original share ledger or transfer book, or a duplicate thereof, shall be prima
facie evidence as to who are the shareholders entitled to examine such list or share ledger or
transfer book or to vote at any meeting of the shareholders.
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><FONT style="font-variant: SMALL-CAPS"><B>Article&nbsp;VII</B></FONT>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><FONT style="font-variant: SMALL-CAPS"><B>General Provisions</B></FONT>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section&nbsp;7.01. </B><B><I>Distributions and Share Dividends. </I></B>Subject to the provisions of the articles of
incorporation relating thereto, if any, distributions and share dividends may be declared by the
board of directors, in its discretion, at any regular or special meeting, pursuant to law. Subject
to any provisions of the articles of incorporation, distributions may be made by the transfer of
money or other property (except the corporation&#146;s own shares or rights to acquire such shares) or
by the issuance of indebtedness of the corporation, and share dividends may be paid in the
corporation&#146;s own authorized but unissued shares or in treasury shares.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section&nbsp;7.02. </B><B><I>Reserve Funds. </I></B>Before payment of any distribution or share dividend, there may
be set aside out of any funds of the corporation available for distributions or share dividends
such sum or sums as the directors from time to time, in their absolute discretion, think proper as
a reserve fund for meeting contingencies, or for equalizing distributions or share dividends, or
for repairing or maintaining any property of the corporation, or for such other purpose as the
directors shall think conducive to the interest of the corporation, and the directors may modify or
abolish any such reserve in the manner in which it was created.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section&nbsp;7.03. </B><B><I>Checks. </I></B>All checks or demands for money and notes of the corporation shall be
signed by such officer or officers or such other person or persons as the board of directors may
from time to time designate.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section&nbsp;7.04. </B><B><I>Fiscal Year. </I></B>The fiscal year of the corporation shall be fixed by resolution of
the board of directors; provided, that if such fiscal year is not fixed by the board of directors
it shall be the calendar year.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section&nbsp;7.05. </B><B><I>Seal. </I></B>The corporate seal shall be in such form as may be prescribed by the
board of directors. The seal may be used by causing it or a facsimile thereof to be impressed or
affixed or in any manner reproduced.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section&nbsp;7.06. </B><B><I>Books and Records. </I></B>The corporation shall keep books and records of account and
shall keep minutes of the proceedings of its shareholders, its board of directors and each
committee of its board of directors. The corporation shall keep at its registered office or
principal place of business, or at the office of its transfer agent or registrar, a record of the
original issuance of shares issued by the corporation and a record of each transfer of those shares
that have been presented to the corporation for registration of transfer. Such records shall
contain the names and addresses of all past and current shareholders of the corporation and the
number and class or series of shares issued by the corporation held by each of them.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section&nbsp;7.07. </B><B><I>Invalid Provisions. </I></B>If any provision of these bylaws is held to be illegal,
invalid, or unenforceable under present or future laws, such provision shall be fully severable;
these bylaws shall be construed and enforced as if such illegal, invalid, or unenforceable
</DIV>

<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">provision had never comprised a part hereof; and the remaining provisions hereof shall remain
in full force and effect and shall not be affected by the illegal, invalid, or unenforceable
provision or by its severance herefrom. Furthermore, in lieu of such illegal, invalid, or
unenforceable provision there shall be added automatically as a part of these bylaws a provision as
similar in terms to such illegal, invalid, or unenforceable provision as may be possible and be
legal, valid, and enforceable.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section&nbsp;7.08. </B><B><I>Headings. </I></B>The headings used in these bylaws are for reference purposes only and
do not affect in any way the meaning or interpretation of these bylaws.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><FONT style="font-variant: SMALL-CAPS"><B>Article&nbsp;VIII</B></FONT>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><FONT style="font-variant: SMALL-CAPS"><B>Indemnification of Directors and Officers</B></FONT>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Article&nbsp;2.02-1 of the Texas Business Corporation Act (the &#147;Article&#148;) permits the corporation
to indemnify its present and former directors and officers to the extent and under the
circumstances set forth therein. In addition, in some instances, indemnification is required by
the Article. The corporation hereby elects to and does hereby indemnify all such persons to the
fullest extent permitted or required by the Article promptly upon request of any such person making
a request for indemnity hereunder. Such obligation to so indemnify and to so make such
determinations may be specifically enforced by resort to any court of competent jurisdiction.
Further, the corporation shall pay or reimburse the reasonable expenses of such persons covered
hereby in advance of the final disposition of any proceeding to the fullest extent permitted by the
Article and subject to the conditions thereof.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><FONT style="font-variant: SMALL-CAPS"><B>Article&nbsp;IX</B></FONT>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><FONT style="font-variant: SMALL-CAPS"><B>Amendments</B></FONT>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;These bylaws may be altered, amended, or repealed or new bylaws may be adopted by the
affirmative vote of a majority of the whole board of directors at any regular or special meeting;
provided, that these bylaws may not be altered, amended, or repealed so as to be inconsistent with
law or any provision of the articles of incorporation.
</DIV>


<P align="center" style="font-size: 10pt">&nbsp;
</DIV>


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</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.1
<SEQUENCE>3
<FILENAME>h32856exv10w1.htm
<DESCRIPTION>STOCK PURCHASE AGREEMENT
<TEXT>
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<HEAD>
<TITLE>exv10w1</TITLE>
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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><B>Exhibit&nbsp;10.1</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>STOCK PURCHASE AGREEMENT</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This Stock Purchase Agreement (this &#147;Agreement&#148;) is made and entered into this 8<SUP style="font-size: 85%; vertical-align: text-top">th</SUP>
day of February, 2006, by and among Jack Friedman (&#147;Seller&#148;), and Friedman Industries,
Incorporated, a Texas corporation (&#147;Buyer&#148;).
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>W I T N E S S E T H:</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, Seller desires to sell, and Buyer desires to acquire, an aggregate of 551,248 shares
of common stock, par value $1.00, of Buyer (the &#147;Shares&#148;), in consideration of an aggregate of
$2,707,179 (the &#147;Purchase Price&#148;), all upon the terms and conditions set forth herein; and
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, the parties hereto desire to set forth certain representations, warranties and
agreements, all as more fully set forth below;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NOW, THEREFORE, in consideration of the premises and the respective covenants and agreements
contained herein, the parties hereto agree as follows:
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ARTICLE 1</B>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><U><B>PURCHASE AND SALE OF SHARES</B></U>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1 <U>Purchase and Sale</U>. Subject to the terms and conditions of this Agreement, Buyer
herewith has purchased from Seller, and Seller herewith has sold to Buyer, the Shares, for the
Purchase Price.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2 <U>Delivery of Shares</U>. Seller has herewith delivered and surrendered to Buyer
certificates representing the Shares, duly endorsed in blank and accompanied by appropriate stock
powers, assignments and such instruments of conveyance as have been reasonably requested by Buyer
to evidence the sale and purchase of the Shares hereunder.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.3 <U>Delivery of Purchase Price</U>. In reliance on the representations and warranties of
Seller set forth in this Agreement and in full consideration of the transfer by Seller to Buyer of
the Shares, Buyer has delivered the Purchase Price to Seller by wire transfer of $2,707,179 to a
bank account specified by Seller.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ARTICLE 2</B>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><U><B>CLOSING</B></U>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The consummation of the transactions contemplated by this Agreement (the &#147;Closing&#148;) took place
at the offices of Fulbright &#038; Jaworski L.L.P., 1301 McKinney, Houston, Texas, at 1:00 p.m. (Houston
time) on the date hereof (the &#147;Closing Date&#148;). All transactions contemplated by this Agreement to
be consummated at the Closing shall be deemed to have occurred simultaneously.
</DIV>

<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ARTICLE 3</B>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><U><B>REPRESENTATIONS, WARRANTIES AND COVENANTS </B></U><BR>
<U><B>OF SELLER</B></U>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Seller represents and warrants to Buyer and covenants and agrees as follows:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1 <U>Ownership</U><B>. </B>Seller is the record and beneficial owner of the Shares and owns the
Shares free and clear of any liens, pledges, mortgages, claims, charges, security interests or
other encumbrances, options, defects or other rights of any third person of any nature whatsoever
(individually, a &#147;Lien and collectively, &#147;Liens&#148;). Seller has full authority to transfer the
Shares and, upon Buyer&#146;s purchase of the Shares, Buyer will acquire the Shares free and clear of
all Liens.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2 <U>Validity of Agreement and Conflict with Other Agreements</U><B>.</B>
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Seller has all requisite legal right, power, capacity and authority to execute and
deliver this Agreement and to perform fully his obligations hereunder. This Agreement has
been duly executed and delivered by Seller and is the valid and binding obligation of
Seller, enforceable against Seller in accordance with its terms except as may be limited by
bankruptcy, insolvency, reorganization, fraudulent conveyance or other similar laws
affecting the enforcement of creditors&#146; rights generally and general equitable principles.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The execution, delivery and performance of this Agreement by Seller and the
consummation of the transactions contemplated hereby by Seller will not, with or without the
passage of time or the giving of notice or both:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) conflict with, constitute a breach, violation or termination of any
provision of, or constitute a default or require any consent, approval or other
third party action under, any contract, agreement, indenture, note, lease, mortgage,
license, commitment or other binding arrangement to which Seller is a party or by
which Seller or the Shares may be bound;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) result in an acceleration or increase of any amounts due from Seller to
any Person;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) result in the creation or imposition of any Lien on the Shares;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) violate any provision of law, judgment, rule, order, decree or any other
restriction applicable to Seller; or
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) require any consent or approval of, or filing with or notice to, any public
or governmental body or authority, under any provision of law applicable to Seller,
other than those required to be filed pursuant to the Securities Exchange Act of
1934 and the rules and regulations promulgated pursuant thereto.
</DIV>

<P align="center" style="font-size: 10pt">-2-
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3 <U>No Violations</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The consummation of the transactions contemplated hereby will not cause any
violation of any order of any governmental entity or any law, ordinance, regulation, order,
requirement, statute, rule, permit, concession, grant, franchise, license or other
governmental authorization relating or applicable to Seller or to any of Seller&#146;s properties
or assets.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) There is no currently pending proceedings nor to the knowledge of Seller have any
proceedings been filed or threatened against either Seller or Seller&#146;s properties or assets,
at law or in equity, before or by any governmental entity that, if adversely determined,
might jeopardize or materially adversely affect the transactions contemplated by this
Agreement or materially and adversely affect the use of or value of the Shares.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.4 <U>No Bankruptcy</U>. Seller has: not (i)&nbsp;filed for voluntary bankruptcy (or have
commenced against him an involuntary bankruptcy) under any chapter or section of the United States
Bankruptcy Code; (ii)&nbsp;been adjudged bankrupt or insolvent in proceedings filed under any section or
chapter of the United States Bankruptcy Code; (iii)&nbsp;made any general assignment for the benefit of
creditors; (iv)&nbsp;been unable, or stated that he is unable, to pay his debts as they become due or
(v)&nbsp;taken any preliminary action with respect to the matters described in clauses (i)&nbsp;or (iii).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.5 <U>Finder&#146;s Fees</U>. Seller has not employed nor retained any investment banker,
broker, agent, finder or other party, or incurred any obligation for brokerage fees, finder&#146;s fees
or commissions, with respect to the sale by Seller of the Shares or with respect to the
transactions contemplated by this Agreement, or otherwise dealt with anyone purporting to act in
the capacity of a finder or broker with respect thereto whereby any party hereto may be obligated
to pay such a fee or commission.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ARTICLE 4</B>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><U><B>REPRESENTATIONS AND WARRANTIES OF BUYER</B></U>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Buyer represents and warrants to Seller as follows:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1 <U>Corporate Matters</U>. Buyer is a corporation duly incorporated, validly existing and
in good standing under the laws of the State of Texas.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2 <U>Validity of Agreement and Conflict with Other Instruments</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Buyer has all requisite corporate power and authority to enter into this Agreement
and to perform its obligations hereunder.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The execution and delivery of this Agreement and the consummation of the
transactions contemplated hereby have been duly authorized by all requisite corporate action
of Buyer. This Agreement has been duly executed and delivered by Buyer and is the valid and
binding obligation of Buyer, enforceable against Buyer in accordance with
</DIV>

<P align="center" style="font-size: 10pt">-3-
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">its terms, except as may be limited by bankruptcy, insolvency, reorganization,
fraudulent conveyance or other similar laws affecting the enforcement of creditors&#146; rights
generally and general equitable principles.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The execution, delivery and performance of this Agreement and the consummation of
the transactions contemplated hereby by Buyer will not, with or without the passage of time
or the giving of notice or both:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) conflict with, constitute a breach, violation or termination of any
provision of, or constitute a default under, any contract, agreement, indenture,
note, lease, mortgage, license, commitment or other binding arrangement to which
Buyer is a party or by which Buyer may be bound;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) conflict with or violate the articles of incorporation or the bylaws of
Buyer;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) violate any provision of law, judgment, rule, order, decree or any other
restriction applicable to Buyer; or
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) require any consent or approval of, or filing with or notice to, any
public or governmental body or authority, under any provision of law applicable to
Buyer other than those required to be filed pursuant to the Securities Exchange Act
of 1934 and the rules and regulations promulgated pursuant thereto.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3 <U>No Violations or Litigation</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The consummation of the transactions contemplated hereby will not cause any
violation of any order of any governmental entity or any law, ordinance, regulation, order,
requirement, statute, rule, permit, concession, grant, franchise, license or other
governmental authorization relating or applicable to Buyer or to any of Buyer&#146;s properties
or assets.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) There is no currently pending proceedings nor to the knowledge of Buyer have any
proceedings been filed or threatened against Buyer, at law or in equity, before or by any
governmental entity that, if adversely determined, might jeopardize or materially adversely
affect the transactions contemplated by this Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4 <U>No Bankruptcy</U>. Buyer has not: (i)&nbsp;filed for voluntary bankruptcy (or have
commenced against it an involuntary bankruptcy) under any chapter or section of the United States
Bankruptcy Code; (ii)&nbsp;been adjudged bankrupt or insolvent in proceedings filed under any section or
chapter of the United States Bankruptcy Code; (iii)&nbsp;made any general assignment for the benefit of
creditors; (iv)&nbsp;been unable, or stated that it is unable, to pay its debts as they become due or
(v)&nbsp;taken any preliminary action with respect to the matters described in clauses (i)&nbsp;or (iii).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.5 <U>Finder&#146;s Fees</U>. Other than GulfStar Group, Buyer has not employed or retained any
investment banker, broker, agent, finder or other party, or incurred any obligation for
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">brokerage fees, finder&#146;s fees or commissions, with respect to the sale by Seller of the Shares
or with respect to the transactions contemplated by this Agreement, or otherwise dealt with anyone
purporting to act in the capacity of a finder or broker with respect thereto whereby any party
hereto may be obligated to pay such a fee or commission.
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ARTICLE 5</B>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><U><B>INDEMNIFICATION</B></U>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1 <U>Seller&#146;s Indemnity</U>. Subject to the provisions of this Article&nbsp;5, Seller agrees to
indemnify and hold Buyer and its officers, directors, shareholders, agents, employees,
representatives, successors and assigns (said Persons being sometimes referred to in this Section
5.1 as &#147;Buyer&#146;s Indemnitees&#148;) harmless from and against and in respect of any loss, cost, claim,
demand, assessment, judgment, liability, damage or expense (including interest, penalties and
attorneys&#146; and accountants&#146; fees) (collectively &#147;Buyer&#146;s Damages&#148;), arising out of or resulting
from, and shall pay Buyer&#146;s Indemnitees the full amount of Buyer&#146;s Damages that Buyer&#146;s Indemnitees
may be obligated to pay on account of any breach of any representation or warranty or failure to
perform any covenant or agreement made or undertaken by Seller in this Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2 <U>Buyer&#146;s Indemnity</U>. Subject to the provisions of this Article&nbsp;5, Buyer agrees to
indemnify and hold Seller, his agents, representatives, successors and assigns (said Persons being
sometimes referred to in this Section&nbsp;5.2 as &#147;Seller&#146;s Indemnitees&#148;) harmless from and against and
in respect of any loss, cost, claim, demand, assessment, judgment, liability, damage or expense
(including interest, penalties, and attorney&#146;s and accountant&#146;s fees) (collectively &#147;Seller&#146;s
Damages&#148;) arising out of or resulting from, and shall pay Seller&#146;s Indemnitees the full amount
thereof that Seller&#146;s Indemnitees may be obligated to pay on account of any breach of any
representation or warranty or failure to perform any covenant or agreement made or undertaken by
Buyer in this Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3 <U>Procedure</U>. All claims for indemnification by a party under this Article&nbsp;5 (the
party claiming indemnification and the party against whom such claims are asserted being
hereinafter called the &#147;Indemnified Party&#148; and the &#147;Indemnifying Party&#148;, respectively) shall be
asserted and resolved as follows:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) In the event that any claim or demand for which an Indemnifying Party would be
liable to an Indemnified Party hereunder is asserted against or sought to be collected from
such Indemnified Party by a third party, such Indemnified Party shall, promptly but in any
event within 30&nbsp;days of the receipt thereof, give notice (the &#147;Claim Notice&#148;) to the
Indemnifying Party of such claim or demand, specifying the nature of and specific basis for
such claim or demand and the amount or the estimated amount thereof to the extent then
feasible, which estimate shall not be binding upon either party in its effort to collect the
final amount of such claim or demand. To the extent the Indemnifying Party is prejudiced
thereby, the failure to so notify the Indemnifying Party of any such claims or action shall
relieve the Indemnifying Party from liability that it may have to the Indemnified Party
under the indemnification provisions contained in this
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">Article&nbsp;5, but only to the extent of the actual loss incurred, and shall not relieve
the Indemnifying Party from any liability that it may have to the Indemnified Party
otherwise than under this Article&nbsp;5. In any case, if any such actions shall be brought
against the Indemnified Party and the Indemnified Party shall notify the Indemnifying Party
of the commencement thereof, the Indemnifying Party shall be entitled to assume the defense
thereof at its own expense with counsel reasonably acceptable to the Indemnified Party. If
the Indemnifying Party does not assume such defense by written notice to the Indemnified
Party within 15&nbsp;days of a request from the Indemnified Party to the Indemnifying Party
asking if it intends to assume such defense, the Indemnified Party shall, in its sole
discretion, conduct such defense with counsel of its choice. If the Indemnifying Party
assumes the defense, the Indemnified Party shall be entitled to participate in the defense
at its expense. The settlement of any claim hereunder by the Indemnifying Party may only be
made upon the prior approval by the Indemnified Party of the terms of the settlement, which
approval shall not be unreasonably withheld, conditioned or delayed, unless the sole relief
provided is monetary damages that are paid in full by the Indemnifying Party. If the
Indemnifying Party has assumed the defense of a claim in accordance with this Section
5.3(a), the Indemnified Party shall not settle the claim except with the written consent of
the Indemnifying Party or upon the waiver of any claim for indemnity hereunder with respect
to such claim.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If requested by the Indemnifying Party, the Indemnified Party agrees, at the
Indemnifying Party&#146;s expense, to cooperate with the Indemnifying Party and its counsel in
contesting any claim or demand that the Indemnifying Party elects to contest, or, if
appropriate and related to the claim in question, in making any counterclaim against the
Person asserting the third party claim or demand, or any cross-complaint against any Person
other than an affiliate of the Indemnified Party.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If any Indemnified Party should have a claim against the Indemnifying Party
hereunder that does not involve a claim or demand being asserted against or sought to be
collected from it by a third party, the Indemnified Party shall send a Claim Notice with
respect to such claim to the Indemnifying Party.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.4 <U>Failure to Pay Indemnification</U>. If and to the extent the Indemnified Party shall
make written demand upon the Indemnifying Party for indemnification authorized pursuant to this
Article&nbsp;5 and the Indemnifying Party shall refuse or fail to pay in full within ten business days
of such written demand the amounts demanded pursuant hereto and in accordance herewith, then the
Indemnified Party may utilize any legal or equitable remedy to collect from the Indemnifying Party
the amount of its Damages plus all costs, including reasonable attorneys&#146; fees incurred in
connection with such collection efforts. Nothing contained herein is intended to limit or
constrain the Indemnified Party&#146;s rights against the Indemnifying Party for indemnity, the remedies
herein being cumulative and in addition to all other rights and remedies of the Indemnified Party.
</DIV>

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<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ARTICLE
6</B></DIV>
<DIV align="center" style="font-size: 10pt; margin-top: 6pt">
<U><B>NATURE OF STATEMENTS AND SURVIVAL </B></U><BR>
<U><B>OF COVENANTS, REPRESENTATIONS, </B></U><BR>
<U><B>WARRANTIES AND AGREEMENTS</B></U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All representations and warranties made by the parties in this Agreement or pursuant hereto
shall survive the Closing Date, notwithstanding any investigation heretofore or hereafter made by
or on behalf of any of them and shall not be deemed merged into any instruments or agreements
delivered at Closing and shall remain in full force and effect for a period of two years following
the Closing Date (the period during which the representations and warranties shall survive being
referred to herein with respect to such representations and warranties as the &#147;Survival Period&#148;),
except as to representations and warranties as to title to the Shares which shall not terminate.
Any claim for indemnification made during the Survival Period shall be valid and the
representations and warranties relating thereto shall remain in effect for purposes of such
indemnification notwithstanding such claim may not be resolved within the Survival Period.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ARTICLE 7</B>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><U><B>MISCELLANEOUS</B></U>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1 <U>Notices</U>. All notices, requests, consents, directions and other instruments and
communications required or permitted to be given under this Agreement shall be in writing and shall
be deemed to have been duly given if delivered personally, if mailed first-class, postage prepaid,
registered or certified mail, or if sent by telegram, telex, facsimile, telecommunication or other
similar form of communication (with receipt confirmed), as follows:
</DIV>
<DIV align="left" style="font-size: 10pt; margin-left: 3%; margin-top: 6pt">If to Sellers to:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-left: 3%; margin-top: 6pt">Jack Friedman<BR>
14 Stonegate<BR>
Longview, Texas 75601
</DIV>

<DIV align="left" style="font-size: 10pt; margin-left: 3%; margin-top: 6pt">Copies to:
</DIV>
<DIV align="left" style="font-size: 10pt; margin-left: 3%; margin-top: 6pt">Phil Brin<BR>
P.O. Box 106<BR>
Longview, Texas 75606<BR>
Attention: &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Phil Brin<BR>
Facsimile: &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><BR>
Confirm: &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 903-753-8067
</DIV>


<P align="center" style="font-size: 10pt">-7-
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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-left: 3%; margin-top: 6pt">If to Buyer, to:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-left: 3%; margin-top: 6pt">Friedman Industries, Incorporated<BR>
1121 Judson Road, Suite&nbsp;124<BR>
Longview, TX 75601<BR>
Attention: &nbsp;&nbsp;&nbsp;&nbsp;President<BR>
Facsimile: &nbsp;&nbsp;&nbsp;&nbsp;(903)&nbsp;758-2265<BR>
Confirm: &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (903)&nbsp;758-3431
</DIV>

<DIV align="left" style="font-size: 10pt; margin-left: 3%; margin-top: 6pt">Copies to:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-left: 3%; margin-top: 6pt">Fulbright &#038; Jaworski L.L.P.<BR>
1301 McKinney, Suite&nbsp;5100<BR>
Houston, TX 77010<BR>
Attention: &nbsp;&nbsp;&nbsp;&nbsp;Laura Ann Smith<BR>
Facsimile: &nbsp;&nbsp;&nbsp;&nbsp;(713)&nbsp;651-5246<BR>
Confirm: &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (713)&nbsp;651-5304
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">or to such other address and to the attention of such other person(s) or officer(s) as any party
may designate by written notice. Any notice shall be effective upon delivery.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.2 <U>Assignment</U>. No party to this Agreement may sell, transfer, assign, pledge or
hypothecate its, his or her rights, interests or obligations under this Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.3 <U>Successors</U>. This Agreement shall inure to the benefit of, be binding upon, and be
enforceable by the parties hereto and their respective successors and assigns.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.4 <U>Expenses</U>. Except as otherwise set forth herein, and whether or not the
transactions contemplated by this Agreement shall be consummated, each party agrees to pay, without
right of reimbursement from any other party, the costs incurred by such party incident to the
preparation and execution of this Agreement and performance of its obligations hereunder, including
without limitation the fees and disbursements of legal counsel, accountants and consultants
employed by such party in connection with the transactions contemplated by this Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.5 <U>Entire Agreement</U>. This Agreement constitutes the entire agreement and
understanding between the parties relating to the subject matter hereof and thereof and supersedes
all prior representations, communications and arrangements, whether oral, written or inferred,
between the parties relating to the subject matter hereof. This Agreement may not be modified or
amended, except upon a written instrument executed by Seller and by a duly authorized
representative of Buyer.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.6 <U>Governing Law</U>. This Agreement shall be governed by and construed and enforced in
accordance with the laws of the State of Texas.
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.7 <U>Waiver</U>. The waiver of any breach of any term or condition of this Agreement shall
not be deemed to constitute the waiver of any other breach of the same or any other term or
condition.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.8 <U>Headings</U>. The headings of the Articles and Sections of this Agreement have been
inserted for convenience of reference only and shall in no way restrict or otherwise modify any of
the terms or provisions hereof or affect in any way the meaning or interpretation of this
Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.9 <U>Definition of Person</U>. As used in this Agreement, &#147;Person&#148; shall mean a
corporation, an association, a partnership, an organization, a business, an individual, a
government or political subdivision thereof or a government agency.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.10 <U>Severability</U>. Any provision hereof that is prohibited or unenforceable in any
jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or
unenforceability without invalidating the remaining provisions hereof, and any such prohibition or
unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in
any other jurisdiction.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.11 <U>Counterparts</U>. This Agreement may be executed in any number of counterparts, each
of which shall be deemed an original, but all of which together shall constitute one and the same
instrument.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.12 <U>Negotiated Transaction</U>. The provisions of this Agreement were negotiated by the
parties hereto, and this Agreement shall be deemed to have been drafted by all of the parties
hereto.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.13 <U>Spousal Consent</U>. Seller is an individual and is married, therefore, Seller&#146;s
spouse is also executing this Agreement. By executing this Agreement, Seller&#146;s spouse (i)
acknowledges that she knows of the contents of this Agreement, (ii)&nbsp;consents to the entering into
this Agreement by Sellers and (iii)&nbsp;agrees that this Agreement shall be binding upon her to the
extent of her community property interest and/or any other interest.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>&#091;SIGNATURES ON FOLLOWING PAGES&#093;</B>
</DIV>



<P align="center" style="font-size: 10pt">-9-
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement as of the date
first above written.
</DIV>
<DIV align="LEFT">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="90%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="38%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="44%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left"><B>SELLERS:</B></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">/s/ JACK FRIEDMAN</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">Jack Friedman</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left"><B>SELLER&#146;S SPOUSE:</B></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">/s/ NAOMI FRIEDMAN</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">Naomi Friedman</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>BUYER:</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">FRIEDMAN INDUSTRIES, INCORPORATED</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">/s/ WILLIAM E. CROW</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Name:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">William E. Crow</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Title:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">President and Chief Operating Officer</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


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<DOCUMENT>
<TYPE>EX-10.2
<SEQUENCE>4
<FILENAME>h32856exv10w2.htm
<DESCRIPTION>LETTER AGREEMENT
<TEXT>
<HTML>
<HEAD>
<TITLE>exv10w2</TITLE>
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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><B>Exhibit&nbsp;10.2</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">Mr.&nbsp;Jack Friedman<BR>
14 Stonegate<BR>
Longview, Texas 75601
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">February&nbsp;8, 2006
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">The Board of Directors of<br>
Friedman Industries, Incorporated<br>
1121 Judson Road, Suite&nbsp;124<br>
Longview, Texas 75601
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Gentlemen:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Effective as of the close of business on the date hereof, I hereby resign my position (i)&nbsp;as
Chairman of the Board and Chief Executive Officer of Friedman Industries, Incorporated, a
Texas corporation (the &#147;Company&#148;), from any other officer position I may hold with the Company
and from any director or officer position I may hold with any subsidiary of the Company and (ii)
retire from full-time employment with the Company.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;It is my understanding that, following my resignation, the Company will continue to provide me
with office facilities and secretarial assistance on the same basis as has been provided to me
during the period of my full-time employment.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If the foregoing correctly sets forth our understanding, please sign the enclosed copy of this
letter in the space provided.
</DIV>
<DIV align="LEFT">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="28%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="20%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Sincerely,</TD>
</TR>
<TR><TD>&nbsp;</TD></TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">/s/ JACK FRIEDMAN</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Jack Friedman</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Agreed and accepted:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">FRIEDMAN INDUSTRIES, INCORPORATED
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">By: <U>/s/ WILLIAM E. CROW</U><BR>
Name: William E. Crow<BR>
Title: President and COO
</DIV>



<P align="center" style="font-size: 10pt">
</DIV>


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