Employment Agreement

                           Maastricht, August 30, 1999

The undersigned:

o    CompX  International  Inc.,  represented  in  this  matter  by  Mr.  J.  S.
     Compofelice, C.E.O., hereinafter to be called the "Employer"; and

o    Mr.  Wouter J. Dammers,  born on April 9, 1952,  and residing in Heiloo the
     Netherlands, hereinafter to be called the "Employee";

WHEREAS:

o    The employer  wishes to employ Mr.  Dammers as the President of its various
     operations in Europe and other areas of the world, a/o as Managing Director
     of Thomas  Regout  International  B.V.  which  company  will fulfill all of
     Employers  obligations as stated in and/or  resulting from this  employment
     contract.  o The parties hereby wish to document the employment contract in
     writing.

HEREBY AGREE AS FOLLOWS:

1.   As  from   September  20,  1999,  Mr.  Dammers  will  enter  the  company's
     employment. This Employment Contract is concluded for an indefinite period,
     but will in any  event  end on the day on which the  Employee  reaches  the
     retirement  age.  The first six months of this  employment  will be a trial
     period.  During that period,  both parties may  terminate  this  Employment
     Contract without cause or compensation.

2.   Employee's  duties may change  from time to time at the  discretion  of the
     C.E.O. of CompX International Inc.

3.   The gross annual salary is NLG 320,000 (three  hundred and twenty  thousand
     Dutch guilders),  including 8% holiday allowance, which salary will be paid
     in 12 equal monthly installments in arrears.

4.   The  Employee  will take part in the  (performance)  bonus  system of CompX
     International  Inc.  The bonus  scheme  applicable  to the  Employee  fully
     described Appendix 1 to this Employment Contract. The basic targets are the
     following  percentages of base pay: 25% at Level A; 50% at Level B; and 75%
     at Level C.

5.   The Employee may each year be granted employee share options with regard to
     shares in CompX  International  Inc. listed on the New York Stock Exchange.
     The employee share option scheme of CompX  International Inc. is set out in
     Appendix 2 to this Employment Contract. Initial grant will be 10,000 shares
     subject  to the  approval  of the Board of  Directors  of CompX at the next
     regularly scheduled meeting.

6.   Employee's base salary,  target bonus  percentages and stock options awards
     will be reviewed  periodically in accordance with the practices followed by
     CompX International Inc. for its senior executives.

7.   The Employee  will be reimbursed  for all ordinary and  necessary  business
     expense  incurred in  accordance  with the  practices and policies at CompX
     International Inc. and consistent with Dutch tax regulations.

8.   Employer  will  provide  the  Employee  with a company car with a catalogue
     value of  approximately  NLG 100,000.  All other costs will also be for the
     company's  account.  The  Employee is  permitted to use the car for private
     purposes.

9.   The  pension  insurance  rights  are set out in  Appendix  3, which will be
     attached to this Employment Contract.

10.  The company has taken out collective  medical  expenses  insurance.  If the
     Employee takes part in this  insurance,  he will receive a compensation  of
     50% of the premium to be paid for full  insurance  on the basis of class 2B
     for the parents and class 3 for the children.

11.  In the even of sickness or  disablement,  Employer will continue to pay the
     Employee  his annual  salary as  described  above for a period of one year,
     increased by all perquisites  attached  thereto,  on a net basis. The rules
     applicable  at the  company on  reporting  sick and on medical  inspections
     apply accordingly.

12.  Supplemental  disablement  insurance  will be taken out in  relation to the
     amount by which the  Employee's  income  exceeds the income limit under the
     WAO (Dutch Disablement  Benefits Act), without any costs being involved for
     the Employee.  The  disablement  pension  amounts to 70% of the  difference
     between the most  recently  applicable  annual salary and the most recently
     applicable  annual wage on which the benefits under the WAO are calculated.
     The insured  pension is subject to a maximum limit which in 1999 amounts to
     fl. 102,434. In the event of partial disablement,  the insured pension will
     be proportionally lower.

13.  If and in so far as the Employee can exercise any claim for damages against
     one or more  parties on the  grounds of loss of salary  with  regard to his
     disablement,  the  payments  referred  to  above  will  be  paid  by way of
     advances,  subject to the condition that the Employee  assign his claims up
     to the amounts that he has thus received as advances to the company.

14.  Accident  insurance and business travel insurance  policies have been taken
     out for employees of Employer, without any costs being involved for them.

15.  The Employee is entitled to 25 days'  holiday a year, as well as 13 days in
     connection  with the reduction of working  hours (ATV).  Some of those days
     are collectively fixed each year.

16.  Employee  acknowledges  and  agrees  that he will  not,  without  the prior
     written  consent  of the  Employer,  at any  time  during  the term of this
     Agreement  or any time  thereafter,  except as may be required by competent
     legal  authority  or as required by the  Employer  to be  disclosed  in the
     course  of  performing  Employee's  duties  under  this  Agreement  for the
     Employer,  use or disclose to any person,  firm or other legal entity,  any
     confidential records, secrets or information related to the Employer or any
     parent,   subsidiary   or  affiliated   person  on  entity   (collectively,
     "Confidential   Information").   Confidential  Information  shall  include,
     without limitation,  information about the Employer's Inventions,  customer
     lists, marketing,  management information systems and production processes.
     Employee  acknowledges  and agrees  that all  Confidential  Information  of
     Employer  and/or its  affiliates  that he may  acquire  will be received in
     confidence  and as a fiduciary  of the  Employer.  Employee  will  exercise
     utmost  diligence  to  protect  and guard  such  Confidential  Information.
     Employee  agrees that he will not take with him upon the termination of his
     employment  with  Employer,  any  document or paper,  or any  photocopy  or
     reproduction  or  duplication   thereof,   relating  to  any   Confidential
     Information.

17.  Employer is entitled in the  Netherlands  and abroad to any patents arising
     from  inventions  that the Employee may come up with during the term of his
     employment  and for a period  of one year  after its  termination  that are
     related to the activities or products of Employer.

18.  The Employee  will make every effort to properly  perform his work and will
     accept management  positions at the request of affiliated companies without
     stipulating  any  compensation  therefore.  Termination of this  Employment
     Contract automatically implies termination of the work referred to here.

19.  Upon termination of this Employment  Contract for reasons other than cause,
     the Employee  shall observe a notice period of three months.  Under current
     legislation,  the notice  period to be  observed by Employer is six months.
     Severance  pay in the event of  termination  for  reasons  other than cause
     shall be six  months  of base pay  before  move  takes  place  and one year
     thereafter.   Cause  is   defined   as  breach  of   Employee's   fiduciary
     responsibility  and in engaging in illegal activity that causes harm to the
     Employer. Notice of termination may be given only effective from the end of
     a calendar month.

20.  Employee will be reimbursed for the actual cost of moving to the Maastricht
     general area including the normal cost of removal, commission and fees.

21.  The  Employee's  work  area  covers  several  countries,   but  under  this
     Employment  Contract the  Netherlands  must be regarded as his  operational
     base, which means that this Employment Contract is governed by Dutch law.

Agreed in Maastricht, the Netherlands,  and drawn up in three original copies on
August 30, 1999.


CompX International Inc.                    Employee





/s/ Joseph S. Compofelice                   /s/ Wouter J. Dammers
-------------------------------------       ------------------------------------
Joseph S. Compofelice                       Wouter J. Dammers
Chief Executive Officer



<PAGE>




Appendix III to the Employment  Contract  concluded between CompX  International
Inc. and Mr. Wouter J. Dammers

Pension

The  pension  insurance  has been  placed  with the  pension  fund for the Metal
Industry PMI, up to the maximum amount to be insured at that pension fund.

The pensionable salary is set at the total gross annual income,  minus the fixed
amount (10/7 x AOW  (benefits  under the Dutch General Old Age Pensions Act) for
married persons).

The pension rights under the pension fund of the Metal Industry PMI are:

a.   an old age pension  commencing at the age of 65,  amounting to 1.75% of the
     pensionable  salary for each  fictitious  year of service  yet to be worked
     until the age of 65;

b.   a widow's pension, amounting to 70% of the old age pension;

c.   an orphans'  pension,  amounting to 20% of the insured  widow's pension per
     orphan, or to 40% in the even of full orphans,  to be paid until the orphan
     reaches  the age of 18. At  present,  7.6% of the premium due is payable by
     the Employee.

You will not take part in our supplemental  collective  pension  insurance,  but
will  continue  an  existing  private  policy.  After the  commencement  of your
employment, that policy may be amended only with the Employer's permission.

All premiums are split 2/3 Employer, 1/3 Employee.
The premiums payable by you will be paid by means of monthly  withholdings  from
your salary.