**Exhibit        10.15**

**LUFKIN        INDUSTRIES, INC.**

**SUPPLEMENTAL        RETIREMENT PLAN**

**SECTION        I**

**Purpose        of Plan**

**Section        1.1 Purpose**

**SECTION        II**

**Eligibility        and Participation**

**Section        2.1 Eligibility**

**SECTION        III**

**Benefits**

**Section        3.1 Benefits**

|   | (a) | the                  monthly retirement benefit that would be payable to such participant                  (or                  Beneficiary) under the Qualified Plan if (i) the participant were                  credited                  with an additional .5 year of credited service thereunder for each                  year of                  credited service actually credited to the participant under the                  Qualified                  Plan, (ii) the participant’s compensation were determined as provided                  under the Qualified Plan but without limitation pursuant to Section                  401(a)(17) of the Internal Revenue Code, and (iii) the participant’s                  benefits thereunder were not limited by Section 415 of the Internal                  Revenue Code, |
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|   | (b) | the                  monthly retirement benefit that is actually paid to the participant                  (or                  Beneficiary) under the Qualified                  Plan.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |

**Section        3.2 Automatic Form of Benefit Payments**
*        provided, however,*

**Section        3.3 Vesting of Benefits**
*        provided, however,*
*        provided further, however,*

**Section        3.4 Automatic Lump Sum Benefit**

**Section        3.5 Definitions**

|   | (a)    | A                  “Change in Control” shall occur on the date of the earliest of the                  following events:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
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|   |   | (i)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | any                  “person,” as such term is used in Section 13(d) and 14(d) of the                  Securities Exchange Act of 1934 (the “Exchange Act”) (other than the                  Company, any trustee or other fiduciary holding securities under                  an                  executive benefit plan of the Company, or any company owned, directly                  or                  indirectly, by the shareholders of the Company in substantially                  the same                  proportions as their ownership of stock of the Company) together                  with its                  “Affiliates” and “Associates”, as such term is defined in Rule 12b-2 of                  the Exchange Act, is or becomes the “beneficial owner” (as defined in Rule                  13d-3 under the Exchange Act), directly or indirectly, of securities                  of                  the Company representing 25% or more of the Company’s common stock or of                  the combined voting power of the Company’s then outstanding securities                  entitled to vote generally in the election of                  directors; |
|   |   | (ii)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | during                  any period of two consecutive years, individuals who at the beginning                  of                  such period constitute the Board of Directors of the Company (the                  “Board”), and any new director (other than a director designated by a                  person who has entered into an agreement with the Company to effect                  a                  transaction described in clause (i), (iii) or (iv) of this definition)                  whose election by the Board or nomination for election by the Company’s                  shareholders was approved by a vote of at least two-thirds of the                  directors then still in office who either were directors at the                  beginning                  of the period or whose election or nomination for election was                  previously                  so approved, cease for any reason to constitute at least a majority                  thereof |
|   |   | (iii)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | the                  shareholders of the Company approve a merger or consolidation of                  the                  Company with any other company other than (A) a merger or consolidation                  which would result in the voting securities of the Company outstanding                  immediately prior thereto continuing to represent (either by remaining                  outstanding or by being converted into voting securities of the                  surviving                  entity) more than 80% of the combined voting power of the voting                  securities of the Company (or such surviving entity) outstanding                  immediately after such merger or consolidation, or (B) a merger                  or                  consolidation effected to implement a recapitalization of the Company                  (or                  similar transaction) in which no “person” (as hereinabove defined)                  acquires more than 25% of the combined voting power of the Company’s then                  outstanding securities; or |
|   |   | (iv)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | the                  shareholders of the Company adopt a plan of complete liquidation                  of the                  Company or approve an agreement for the sale, exchange or disposition                  by                  the Company of “all or a significant portion of the Company’s assets,”                  which for this purpose shall mean a sale or other disposition transaction                  or series of related transactions involving assets of the Company                  or any                  subsidiary (including the stock of any subsidiary) in which the                  value of                  the assets or stock being sold or otherwise disposed of (as measured                  by                  the purchase price being paid therefor or by such other method                  as the                  Board determines is appropriate in a case where there is no readily                  ascertainable purchase price) constitutes more than 25% of the                  fair market                  value of the Company (as hereinafter defined). For purposes of                  the                  preceding sentence, the “fair market value of the Company” shall be the                  aggregate market value of the outstanding shares of common stock                  of the                  Company (on a fully diluted basis) plus the aggregate market value                  of the                  Company’s other outstanding equity securities. The aggregate market value                  of the shares of common stock of the Company shall be determined                  by                  multiplying the number of shares of the Company’s common stock (on a fully                  diluted basis) outstanding on the date of the execution and delivery                  of a                  definitive agreement with respect to the transaction or series                  of related                  transactions (the “Transaction Date”) by the market value per share                  immediately preceding the Transaction Date or by such other method                  as the                  Board shall reasonably determine is appropriate. The aggregate                  market                  value of any other equity securities of the Company shall be determined                  in                  a manner similar to that prescribed in the immediately preceding                  sentence                  for determining the aggregate market value of the shares of common                  stock                  of the Company or by such other method as the Board shall reasonably                  determine is appropriate |
|   | (b)    | The                  term “Cause” shall mean:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|   |   | (i)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | an                  act or acts of personal dishonesty taken by the participant and                  intended                  to result in substantial personal enrichment of the participant                  at the                  expense of the Company; |
|   |   | (ii)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | repeated                  violations by the participant of his duties which are demonstrably                  willful                  and deliberate on the participant’s part and which are not remedied in a                  reasonable period of time after receipt of written notice from                  the                  Company; or |
|   |   | (iii)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | the                  conviction of the participant of, or plea of nolo contendere by                  the                  participant to, a felony. |
|   |   | A                  participant must be notified in writing of any termination of his                  employment for Cause, which writing shall set forth in reasonable                  detail                  the facts and circumstances relied upon therefor. A participant                  will then                  have the right, within ten days of receipt of such notice, to file                  a                  written request for review. In such case, the participant will                  be given                  the opportunity to be heard, personally or by counsel, by the members                  of                  the Board who are not then executives of the Company (the “Independent                  Directors”) and a majority of the Independent Directors must thereafter                  confirm that such termination is for Cause. If the Independent                  Directors                  do not provide such confirmation, the termination shall be treated                  as a                  termination by the Company without Cause. |
|   | (c)    | The                  term “Actuarial Equivalent” shall have the same meaning as such term in                  the Qualified Plan.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|   | (d)    | The                  term “Beneficiary” shall mean the participant’s surviving spouse entitled                  to any survivor benefits under the Qualified Plan or, if the participant                  is either not married or his surviving spouse is not his beneficiary                  under                  the Qualified Plan, the person(s) including, if applicable, estate,                  that                  is the participant’s beneficiary receiving the comparable survivor’s                  benefit under the Qualified Plan.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |

**SECTION        IV**

**Administration**

**Section        4.1 Administrator**

**SECTION        V**

**Amendment        and Termination**

**Section        5.1 Amendment and Termination**

**Section        5.2 Successor**

**SECTION        VI**

**Miscellaneous**

**Section        6.1 No Employment Rights**

**Section        6.2 Assignment**

**Section        6.3 Taxes**

**Section        6.4 Benefits Unfunded**

**Section        6.5 Applicable law**

**IN        WITNESS WHEREOF**

**LUFKIN        INDUSTRIES, INC.**

| By:    | /s/                  C J Haley, Jr.    |
|--------|----------------------------------------|
| Title: | Secretary                  - Treasurer |

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**AMENDMENT        ONE TO**

**LUFKIN        INDUSTRIES, INC.**

**SUPPLEMENTAL        RETIREMENT PLAN**

**WHEREAS**

**WHEREAS**

**WHEREAS**

**WHEREAS**

**NOW,        THEREFORE,**

**“Section        1.1 Purpose **

|   | (b) | the                  sum of the monthly retirement benefits that are actually paid to                  the                  participant (or Beneficiary) under the Qualified Plan and the Restoration                  Plan.” |
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**“Section        3.3 Vesting of Benefits**

**IN        WITNESS WHEREOF**

| **ATTEST:**                          | **COMPANY**                                  |
|--------------------------------------|----------------------------------------------|
|                                 | **LUFKIN                  INDUSTRIES, INC.** |
| /s/                  R E Myers.      | By:                                          | /s/                  C J Haley, Jr. |
| Assistant                  Secretary | Title:                                       | Secretary                  - Treasurer |

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**AMENDMENT        TWO**

**LUFKIN        INDUSTRIES, INC.**

**SUPPLEMENTAL        RETIREMENT PLAN**

**WHEREAS**

**WHEREAS**

**WHEREAS**

**NOW,        THEREFORE**

|   | “(a) | the                  monthly retirement benefit that would be payable to such participant                  (or                  Beneficiary) under the Qualified Plan if (i) the participant were                  credited                  with an additional .5 year of credited service thereunder for each                  year of                  credited service actually credited to the participant under the                  qualified                  Plan, (ii) the participant’s compensation were determined as provided                  under the Qualified Plan but without limitations pursuant to Section                  401(A)(17) of the Internal Revenue Code of 1986 as amended (the“Code”)                  and as if the participant’s compensation under the Basic Plan had not been                  reduced by any deferrals of his compensation which he elected to                  make                  under a deferred compensation agreement with an employer pursuant                  to a                  nonqualified defined contribution plan restoration plan maintained                  by the                  employer; and (iii) the participant’s benefits thereunder were not limited                  by Section 415 of the Code, |
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|   | (b)        | the                  sum of the monthly retirement benefits that are actually paid to                  the                  participant (or Beneficiary) under the Qualified Plan and the Restoration                  Plan.”                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |

**Section        3.2 Automatic Form of Benefit Payments **

|   | (a)    | At                  any time prior to the date the Participant first becomes eligible                  to                  participate in the Plan and subject to such requirements as may                  be imposed                  by the Committee, Participant may elect to receive the Actuarial                  Equivalent of his benefits under the Plan in a lump sum or in any                  form of                  benefit offered under the Qualified Plan commencing on his or her                  Benefit                  Distribution Date;                                                                                                                                                                                                                                                                                                                                                                                |
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|   | (b)    | At                  any time prior to January 1, 2006, subject to such requirements                  as may be                  imposed by the Committee, a Participant may elect to receive benefits                  under the Plan in a lump sum or in any form of benefit offered                  under the                  Qualified Plan commencing on his or her Benefit Distribution                  Date;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|   | (c)    | At                  any time prior to Participant’s Benefit Distribution Date, Participant may                  elect to change his form of benefit to a lump sum or any of the                  forms of                  distribution permitted under the Qualified Plan, provided that                  such change                  complies with each of the following requirements:Such                  payment change must be submitted to and accepted by the Committee                  in its                  sole discretion at least twelve (12) months prior to the Participant’s                  previously designated scheduled Benefit Distribution Date;                  andThe                  new scheduled Benefit Distribution Date selected by the Participant                  must                  be at least five years after the previously designated Benefit                  Distribution Date; and |
|   |   | (i)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | payment                  change must be submitted to and accepted by the Committee in its                  sole                  discretion at least twelve (12) months prior to the Participant’s                  previously designated scheduled Benefit Distribution Date;                  and |
|   |   | (ii)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | The                  new scheduled Benefit Distribution Date selected by the Participant                  must                  be at least five years after the previously designated Benefit                  Distribution Date; and |
|   |   | (iii)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | The                  election of the new scheduled Benefit Distribution Date shall have                  no                  effect until at least twelve (12) months after the date on which                  the                  election is made.” |

**“Section        3.4 Automatic Lump Sum Benefit**

|   | (e) | “Benefit                  Distribution Date” shall mean the date that is as soon as administratively                  feasible following a participant’s separation from service (within the                  meaning of section 409A of the Code) with the Company and each                  member of                  its controlled group; provided, however, that in the event that                  a                  participant is determined by the Committee to be a “key employee” (as                  defined in section 416(i) of the Code without regard to paragraph                  (5)                  thereof) as of the last day of the calendar year prior to the                  Participant’s separation from service, such participant’s Benefit                  Distribution Date shall be the date that is the earlier of (i)                  participant’s date of death or (ii) six (6) months following such                  separation from service. If a participant would have received payments                  during such six-month period but for the fact that participant                  is a “key                  employee”, participant’s installment payments shall be accumulated during                  such six-month period and paid as soon as administratively feasible                  after                  such six-month period.” |
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**IN        WITNESS WHEREOF**

| **ATTEST:**                    | **COMPANY**                                  |
|--------------------------------|----------------------------------------------|
|                           | **LUFKIN                  INDUSTRIES, INC.** |
| /s/                  P G Perez | By:                                          | /s/                  R D Leslie |
| Secretary                      | Title:                                       | Vice                  President/Treasurer/Chief Financial                  Officer |

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**AMENDMENT        THREE**

**LUFKIN        INDUSTRIES, INC.**

**SUPPLEMENTAL        RETIREMENT PLAN**

**WHEREAS**

**WHEREAS**

**WHEREAS**

**WHEREAS**

**NOW,        THEREFORE,**

*Effective        as of January 1, 2005, Section 3.2 of the Plan shall be amended to read as        follows:*

**“Section        3.2 Automatic Form of Benefit Payments**

|   | (a)    | Pre-2005                  Accruals. The present value as of December 31, 2004 of the monthly                  retirement benefit that would be payable to a participant (or Beneficiary)                  if the participant voluntarily terminated service without cause                  on                  December 31, 2004 and received a payment of the benefits with the                  maximum                  value available from the Plan on the earliest possible date allowed                  under                  the Plan to receive a payment of benefits following the termination                  of                  services within the meaning of applicable guidance relating to                  the                  provisions of Section 409A of the Internal Revenue Code shall herein                  be                  referred to as the “Pre-2005 Accruals”. Increases in the present value of                  the future payments to which the participant or Beneficiary are                  entitled                  as of December 31, 2004, due solely to the passage of time determined                  using the same interest rate used to determine the amounts under                  the Plan                  before January 1, 2005 resulting from the shortening of the discount                  period before the future payments are made, plus, if applicable                  an                  increase in the present value resulting from the Participant’s                  survivorship during the year shall also be included in the “Pre-2005                  Accruals”, however, an increase in the potential benefits under the                  Restoration Plan due to an application of an increase in compensation                  after December 31, 2004 to prior years or service or subsequent                  eligibility for an early retirement subsidy shall not constitute“Pre-2005                  Accruals”. The Pre-2005 Accruals shall commence at the same time, shall                  be                  subject to the same restrictions and actuarial adjustments and                  other terms                  as the benefit actually paid to such person under the Qualified                  Plan;                  *provided,                  however,*the                  Compensation Committee, in its sole discretion, may direct at any                  time on                  or after the participant’s retirement or death that the Actuarial                  Equivalent present value of such benefit (or remaining benefit                  if already                  in pay status) be paid to such person in a lump sum (by                  check). |
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|   | (b)    | Post-2004                  Accruals. The monthly retirement benefit payable to a participant                  (or                  Beneficiary) which is accrued under the Plan in excess of the Pre-2005                  Accruals shall be referred to herein as the “Post-2004 Accruals”. With                  respect to the Post 2004 Accruals, the benefit payable to a participant                  (or Beneficiary) under this Plan shall be paid or commence as soon                  as                  administratively feasible following the participant’s Benefit Distribution                  Date (as defined below) and the Participant shall be entitled to                  make the                  following elections as to the form and timing of the                  payment:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|   |   | (i)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | At                  any time prior to the date the Participant first becomes eligible                  to                  participate in the Plan and subject to such requirements as may                  be imposed                  by the Committee, Participant may elect to receive the Actuarial                  Equivalent of his benefits under the Plan in a lump sum or in any                  form of                  benefit offered under the Qualified Plan commencing on his or her                  Benefit                  Distribution Date; |
|   |   | (ii)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | At                  any time prior to January 1, 2006, subject to such requirements                  as may be                  imposed by the Committee, a Participant may elect to receive benefits                  under the Plan in a lump sum or in any form of benefit offered                  under the                  Qualified Plan commencing on his or her Benefit Distribution                  Date; |
|   |   | (iii)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | At                  any time prior to Participant’s Benefit Distribution Date, Participant may                  elect to change his form of benefit to a lump sum or any of the                  forms of                  distribution permitted under the Qualified Plan, provided that                  such change                  complies with each of the following requirements: |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | (A) | Such                  payment change must be submitted to and accepted by the Committee                  in its                  sole discretion at least twelve (12) months prior to the Participant’s                  previously designated scheduled Benefit Distribution Date;                  and |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | (B) | The                  new scheduled Benefit Distribution Date selected by the Participant                  must                  be at least five years after the previously designated Benefit                  Distribution Date; and |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | (C) | The                  election of the new scheduled Benefit Distribution Date shall have                  no                  effect until at least twelve (12) months after the date on which                  the                  election is made.” |
|   |   | (iv)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | Absent                  an election by the Participant in accordance with (i), (ii) or                  (iii)                  above, all Post-2004 accruals shall be paid in one lump sum as                  soon as                  administratively feasible following the Participant’s Benefit Distribution                  Date. |

*Section        3.4 of the Plan shall be amended to read as follows:*

**Section        3.4 Automatic Lump Sum Benefit**

*Section        3.5 of the Plan shall be amended to add subsection 3.5 (e) to read as        follows:*

|   | “(e) | “Benefit                  Distribution Date” shall mean the date that is as soon as administratively                  feasible following a participant’s separation from service (within the                  meaning of section 409A of the Code) with the Company and each                  member of                  its controlled group; provided, however, that in the event that                  a                  participant is determined by the Committee to be a “key employee” (as                  defined in section 416(i) of the Code without regard to paragraph                  (5)                  thereof) as of the last day of the calendar year prior to the                  Participant’s separation from service, such participant’s Benefit                  Distribution Date shall be the date that is the earlier of (i)                  participant’s date of death or (ii) six (6) months following such                  separation from service. If a participant would have received payments                  during such six-month period but for the fact that participant                  is a “key                  employee”, participant’s installment payments shall be accumulated during                  such six-month period and paid as soon as administratively feasible                  after                  such six-month period.” |
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*To        the extent that any provision of any amendments herein or in any previous        or        subsequent amendment shall be construed as a “material modification” (within the        meaning of the grandfathering provisions of section 409A of the Code and        applicable guidance) of the Plan provisions as in effect prior to January        1,        2005 with respect to the Pre-2005 Accounts, such provisions shall be void        ab        initio and of no effect.*
*        Except as hereinabove amended, the provisions of the Plan as previously amended        shall remain in full force and effect. *

| **ATTEST:**                    | **COMPANY**                                  |
|--------------------------------|----------------------------------------------|
|                           | **LUFKIN                  INDUSTRIES, INC.** |
| /s/                  P G Perez | By:                                          | /s/                  R D Leslie |
| Secretary                      | Title:                                       | Vice                  President/Treasurer/Chief Financial                  Officer |