Confidential portions of this document have been omitted and filed separately
with the Commission.


                                                       2700 International Drive
                                                                      Suite 200
                                                         West Chicago, IL 60185
                                                                   630/584-1000
                                                               Fax 630/584-1243

ALUMAX
TRANSPORTATION PRODUCTS

    October 22, 1998

                           VIA FACSIMILE 319-547-6099

Mr. Gary Ihrke
Vice President, Operations
Featherlite Manufacturing, Inc.
Box 320
Cresco, IA 52136

Dear Gary:


This letter will confirm that Alumax  Transportation  Products  agrees to supply
and you agree to purchase ********** pounds of aluminum  extrusions for delivery
January, 1998 through December,  1998 via our assigned contract number ATP 0201,
Featherlite  Contract No. 0004. Pricing during this contract period will be firm
at $***** per pound.

Based  upon  your  commitment,  Alumax  Transportation  Products  has  taken the
necessary actions,  via an established metal position,  to provide a firm price
for the duration of this  agreement.  It is expected that  shipments of finished
product  will  occur  in  a  timely  manner,  which  in  this  case  equates  to
approximately ********* pounds on a monthly basis .

In the event you do not  fulfill  the  volume  commitment  during  the  contract
period,  you will be invoiced  for and  expected  to pay an amount  equal to any
financial  loss we incurred on the metal  position  we  established  in order to
provide  you with this firm price  contract.  The  amount you would be  invoiced
would be calculated  in accordance  with the attached  Alumax  Extrusions,  Inc.
terms and conditions regarding firm priced contracts.

We believe the above  establishes  the essence of our  agreement  and we request
that you acknowledge  receipt and forward a signed copy of this contract for our
files.

We appreciate your confidence in Alumax Transportation Products and look forward
to the successful completion of this contract.

Best regards,                                   ACKNOWLEDGED AND ACCEPTED:
 /s/ Ted E. Smothers                             /s/ Gary Ihrke
 Ted E. Smothers                                     Gary Ihrke
 Vice President, Sales & Marketing               Vice President, Operations
                                                 Featherlite Manufacturing, Inc.

cc:      M.S. Czachorski   S. Kavanaugh
         T.A. Horonzy      S. Staller



A Business Unit of Alumax Extrusions, Inc.



<PAGE>



                              TERMS AND CONDITlONS

Contract Cancellation - Entirely or in part for any undershipment quantity.


The loss, if any, incurred by Alumax  Extrusions,  Inc. will be measured by "the
difference between the Metals Week P1020 Midwest Transaction Price for the month
of scheduled  shipment as of the date of this  contract  over the average of the
Metals Week P1020 Midwest  Transaction Price for each of the months in which the
undershipment occurred times the quantity undershipped in each month."

Extension of the Contract - For up to an additional six months.

Calculation  of the price per pound to be added to the original  contract  price
per pound (for the guantity of product  equivalent to the undershipped  position
at the  expiration  date of the  original  contract)  shall be  measured by "the
difference  between  the Metals  Week P1020  Midwest  Transaction  Price for the
quarter in which the  product is  scheduled  to be shipped  during the  extended
contract  term,  over the average of the Metals Week P1020  Midwest  Transaction
Price for each of the months in which the undershipment occurred, "plus $*** per
pound. If no excess metal price exists, the new contract price will be increased
by $*** per pound over the original contract price.