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<SEC-DOCUMENT>0000950129-08-005476.txt : 20081106
<SEC-HEADER>0000950129-08-005476.hdr.sgml : 20081106
<ACCEPTANCE-DATETIME>20081106121735
ACCESSION NUMBER:		0000950129-08-005476
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20081031
ITEM INFORMATION:		Entry into a Material Definitive Agreement
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20081106
DATE AS OF CHANGE:		20081106

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:		081166063

	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>h64791e8vk.htm
<DESCRIPTION>FORM 8-K - CURRENT REPORT
<TEXT>
<HTML>
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<TITLE>e8vk</TITLE>
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<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<BR>
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<BR>
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): October&nbsp;31, 2008</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
</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>
<TR valign="bottom">
    <TD align="center" valign="top">of incorporation)</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<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">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="BOTTOM"><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, 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>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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








<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 October&nbsp;31, 2008, Friedman Industries, Incorporated (the &#147;Company&#148;) entered into a
Consulting Agreement with Jack Friedman, a director of the Company. Mr.&nbsp;Friedman also has served
the Company previously in various executive officer capacities, including most recently,
until February&nbsp;2006, as Chairman and Chief Executive Officer. The Consulting Agreement
provides that the Company will engage Mr.&nbsp;Friedman to provide such advisory or consulting services
to the Company as may be requested by the Board of Directors of the Company, the Chief Executive
Officer of the Company or any Senior Vice President of the Company from time to time during the
term of the agreement. The Company has agreed to pay Mr.&nbsp;Friedman an annual fee of $13,200,
payable in monthly installments of $1,100, for an initial term ending December&nbsp;31, 2009 (subject to
earlier termination upon certain specified events), and, thereafter, for automatically renewing
successive one-year terms (subject to earlier termination upon such specified events and the
Company&#146;s right to terminate the agreement as of the end of any such one-year term).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A copy of the Consulting Agreement is attached hereto as Exhibit&nbsp;10.1 and is incorporated
herein by reference.
</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="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="92%">&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"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">10.1</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Consulting Agreement dated October 31, 2008, by and between Jack Friedman and Friedman Industries, Incorporated.</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->2<!-- /Folio -->
</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>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: November&nbsp;6, 2008
</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="left">/s/ BEN HARPER
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left">Ben Harper&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left">Senior Vice President &#151; Finance&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>

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

<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="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="92%">&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>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom"><!-- Blank Space -->
    <TD align="right" 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="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">10.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Consulting Agreement dated October&nbsp;31, 2008, by and between Jack Friedman and
Friedman Industries, Incorporated.</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


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

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</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.1
<SEQUENCE>2
<FILENAME>h64791exv10w1.htm
<DESCRIPTION>EXHIBIT 10.1
<TEXT>
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<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>FRIEDMAN INDUSTRIES INCORPORATED<BR>
JACK FRIEDMAN</B>
</DIV>


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

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This Agreement (this &#147;Agreement&#148;) is entered into on October&nbsp;31, 2008, by and between Friedman
Industries, Incorporated, a Texas corporation (the &#147;Company&#148;), and Jack Friedman (&#147;Consultant&#148;).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, Consultant is a director of the Company and previously served as Chairman of the Board and
Chief Executive Officer of the Company from 1972 until his retirement in 2006;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, Consultant&#146;s knowledge, expertise, experience and skills are valuable to the Company and
the Company wishes to retain Consultant in order to utilize his knowledge, expertise, experience
and skills, on the terms and conditions set forth below;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NOW, THEREFORE, in view of the foregoing, the mutual promises and agreements contained herein and
other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the Company and Consultant, intending legally to be bound, agree as follows:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;<B>Engagement. </B>The Company hereby agrees to engage Consultant, upon the terms and conditions
of this Agreement, and Consultant hereby accepts such engagement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;<B>Term. </B>Subject to the specific provisions for termination set forth in Section&nbsp;7 hereof,
the term of this Agreement shall be for the period beginning on the date hereof and ending on
December&nbsp;31, 2009, and shall automatically renew thereafter for additional successive one-year
periods unless and until the Company shall send Consultant written notice of termination on or
prior to the 90<SUP style="font-size: 85%; vertical-align: text-top">th</SUP> day preceding the last day of the then applicable one-year renewal
period (the &#147;Term&#148;).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;<B>Nature of Relationship. </B>The Company and Consultant hereby expressly acknowledge and agree
that (a)&nbsp;Consultant is to provide advisory and consulting services to the Company in the capacity
of an independent contractor and not as an employee of the Company and the Company is to have no
right to control or direct the manner in which such services are to be performed and (b)&nbsp;Consultant
is not authorized to enter into any contract or agreement on behalf of the Company or any affiliate
of the Company without the prior written authorization of such party. Consultant agrees to make no
representation to any person or entity inconsistent in any manner with the provisions of the
preceding sentence.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.<B>&nbsp;Duties of Consultant.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <I>General</I>. During the Term, Consultant agrees to provide such advisory or consulting
services to the Company as may be requested by the Board of Directors of the Company (the &#147;Board&#148;),
the Chief Executive Officer of the Company or any Senior Vice President of the Company from time to
time during the Term. Consultant will comply with all provisions of all applicable laws, with all
corporate documents governing the conduct of the business and affairs of the Company and with all
policies of the Company.
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->-1-<!-- /Folio -->
</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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <I>Other Activities</I>. Notwithstanding the provisions of this Section&nbsp;4 or any other
provisions hereof, it is understood that during the Term, Consultant may engage in such activities
on such terms and conditions for such other person as Consultant in his sole discretion shall
desire so long as such activities do not interfere materially with or detract materially from
Consultant&#146;s performance of his duties hereunder. Notwithstanding the immediately-preceding
sentence, during the Term, Consultant may not engage in any activities for or any other company
that currently or in the future is engaged in any manner in any business in which the Company or
any of its subsidiaries is then engaged.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.&nbsp;<B>Compensation. </B>For all the duties to be performed by Consultant hereunder, during the Term,
Consultant shall receive a salary at an annual rate of $13,200.00, which monthly amount shall be
$1,100.00. Such salary shall be payable to Consultant in installments in accordance with the
Company&#146;s policy for the payment of executives as in effect from time to time during the Term.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.&nbsp;<B>Miscellaneous Provisions Regarding Duties, Compensation and Benefits.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <I>Service on Board of Directors</I>. The Company shall take all efforts reasonably within its
control to cause Consultant to remain a member of the Board until the annual meeting of
shareholders of the Company held in 2009, subject to any actions taken or not taken by any person
in respect of compliance with any applicable fiduciary duties.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <I>Expenses</I>. During the Term, Consultant shall be reimbursed for his reasonable business and
travel expenses in accordance with the general reimbursement policy of the Company then in effect
with respect to its executives and as such policy may be changed from time to time thereafter by
the Company, until the expiration of the Term, provided that the expenses are incurred in
connection with the performance of services by Consultant specifically requested in accordance with
Section 4(a) hereof and Consultant has submitted to the Company on a timely basis such
documentation as may be necessary to substantiate such expenses and the business purpose thereof.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.&nbsp;<B>Termination</B>. Upon the termination of this Agreement by Consultant, the termination of this
Agreement by the Company in accordance with Section&nbsp;2 hereof, an Event of Termination for Cause, or
the death or disability of Consultant, this Agreement shall terminate and the Company will pay to
Consultant and provide to Consultant only the amounts provided for herein earned and due but unpaid
through the date of such termination. An &#147;Event of Termination for Cause&#148; shall have occurred if
the Company reasonably shall determine and notifies Consultant that it reasonably has determined
that (i)&nbsp;Consultant willfully has neglected the performance of his duties hereunder, (ii)
Consultant has been convicted by a court of competent jurisdiction of a crime involving moral
turpitude, including but not limited to fraud, theft, embezzlement or any crime that results in or
is intended to result in personal enrichment at the expense of the Company or (iii)&nbsp;Consultant has
committed acts amounting to gross negligence or willful misconduct to the material detriment of the
Company.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.&nbsp;<B>Severability</B>. If any provision of this Agreement shall be held by a court of competent
jurisdiction invalid or unenforceable, the remainder of this Agreement shall nevertheless remain in
full force and effect. If any provision is held by a court of competent jurisdiction invalid or
unenforceable with respect to particular circumstances, it shall nevertheless remain in full force
and effect in all other circumstances.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->-2-<!-- /Folio -->
</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;9.&nbsp;<B>Inurement</B>. This Agreement shall be binding upon, and shall inure to the benefit of, the
Company and Consultant and their respective heirs, personal and legal representatives, successors
and assigns.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.&nbsp;<B>Governing Law</B>. This Agreement and the rights and obligations of the parties hereunder
shall be governed by, and construed and interpreted in accordance with, the laws of the State of
Texas and, to the extent controlling, applicable federal laws of the United States of America.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.&nbsp;<B>Notices</B>. Any notice required to be given shall be sufficient if it is in writing, hand
delivered or sent by certified or registered mail, return receipt requested, first-class postage
prepaid, in the case of Consultant, to his residence at the address set forth on the signature page
hereof or such other address of which
Consultant may hereafter notify the Company, and, in the case of the Company, to the office
address of the Company set forth on the signature page hereof or such other address of which the
Company may hereafter notify Consultant.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.&nbsp;<B>Entire Agreement</B>. This Agreement contains the entire agreement and understanding by and
between the Company and Consultant with respect to the subject matter hereof, and supersedes all
other representations, promises, agreements, understandings or negotiations between the parties
regarding the subject matter hereof, whether written or oral, not contained herein.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.&nbsp;<B>Amendments and Waivers</B>. No change or modification of this Agreement shall be valid or
binding unless it is in writing and duly executed by both parties hereto. No waiver of any
provision of this Agreement shall be valid unless it is in writing and signed by the party to be
charged thereby. No valid waiver of any provision of this Agreement at any time shall be deemed a
waiver of any other provision of this Agreement at such time or at any other time.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.&nbsp;<B>Assignments</B>. This Agreement is a personal services contract. The rights and obligations
of Consultant hereunder may not be sold, transferred, delegated, assigned, pledged or hypothecated
and any attempted assignment, transfer or sale shall be void.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.&nbsp;<B>Captions</B>. The captions of the various sections and subsections of this Agreement have
been inserted only for purposes of convenience and shall not be deemed in any manner to modify,
explain, enlarge or restrict any of the provisions of this Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.&nbsp;<B>Consultant&#146;s Representation</B>. Consultant represents and warrants that he is free to enter into
this Agreement and to perform each of the terms and covenants of it. He further represents that he
has been advised by legal counsel as to the terms and provisions hereof and the effort thereof and
fully understands the consequences thereof.
</DIV>

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

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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IN WITNESS WHEREOF, the parties have duly executed this Agreement as of the day and year first
above written.
</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"><B>&#147;Company&#148;</B>:<BR>
<BR>
FRIEDMAN INDUSTRIES, INCORPORATED<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" style="border-bottom: 1px solid #000000" align="left">/s/ WILLIAM E. CROW
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" align="left">William E. Crow&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" align="left">Chief Executive Officer and President&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
</TABLE>

<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">Company&#146;s Office Address:<BR>
1121 Judson Road, Suite&nbsp;124<BR>
Longview, Texas 75601<BR>
Attention: President<BR>
<BR>
<B>&#147;Consultant&#148;</B>:<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" style="border-bottom: 1px solid #000000" align="left">/s/ JACK FRIEDMAN
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" align="left">Jack Friedman&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" style="border-bottom: 0px solid #000000" align="left">Consultant&#146;s Residence Address:<br>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" style="border-bottom: 1px solid #000000" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" style="border-bottom: 1px solid #000000" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>


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