Document:

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                                                                    EXHIBIT 10.8

                                 LOAN AGREEMENT

         THIS AGREEMENT, made and entered into the ____ day of June, 2002, by
and between STILLWATER NATIONAL BANK AND TRUST COMPANY OF STILLWATER, OKLAHOMA,
a National Banking Corporation (hereinafter referred to as "BANK") and EXCALIBUR
HOLDINGS, INC., a Texas corporation (hereinafter referred as "DEBTOR").

         In consideration of the mutual promises herein contained, the parties
hereby agree as follows:

                             I. THE INSTALLMENT LOAN

         1.1 Subject to the terms hereinafter set forth, Bank agrees to lend to
Debtor, and the Debtor agrees to borrow from the Lender, the sum of TWO MILLION
FIVE HUNDRED THOUSAND AND NO/100 DOLLARS ($2,500,000.00) (hereinafter referred
to as "INSTALLMENT LOAN"), to be used by the Debtor for the limited purpose of:
(i) purchasing equipment (as defined in Uniform Commercial Code Section 9-109(2)
of the U.C.C.) to be used in Debtor's trade or business (the "EQUIPMENT"); and
(ii) paying off a Debtor's "Qualifying Current Indebtedness" (defined below). It
is specifically understood that the proceeds of the Installment Loan shall not
be used for the general operating expenses of the Debtor's business.

         1.2 The Installment Loan shall be evidenced by and payable with
interest on the terms set forth in a Promissory Note of Debtor ("INSTALLMENT
NOTE") payable to the order of the Bank, with interest in the form and with the
provisions set forth in Exhibit "A" attached hereto. The Installment Note is an
advancing note, but not a revolving credit arrangement. Debtor shall pay
installments of principal and interest monthly as provided by the Installment
Note. The Bank is hereby authorized, but shall not be required, to make
notations of advances by it to the Debtor and payments to it by the Debtor on
the reverse side of the Note. Such notations, or the entries on any liability
ledger records maintained by or for the Bank as to indebtedness of Debtor, shall
be presumed correct until the contrary is established by Debtor. Upon demand by
the Bank at any time or from time to time, the Debtor will confirm and admit by
signed writing the exact amount of indebtedness for principal and interest then
outstanding under this Agreement. Any billing statement or accounting rendered
by or for the Bank shall be conclusive and fully binding on Debtor unless
specific written notice of exception is given to the Bank by Debtor within
thirty (30) days thereafter.

         1.3 Advances under the Installment Note will be limited by the Debt
Service Ratio (defined below) and the Liquidity Ratio (defined below). A request
for advance shall be submitted upon a signed Request for Advance, in a form and
substance acceptable by the Bank, which shall contain, without limitation, the
following:

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                  (a) The description and location of the Equipment to be
         acquired, or which has been acquired, and for which the advance is to
         be made;

                  (b) The amount of the Advance applicable to the listed
         Equipment, and a statement that the amount of the Advance reasonably
         represents the fair value of the Equipment;

                  (c) If, in order to obtain a security interest in the
         Equipment, it is necessary to record the same on the document of title
         for the Equipment, the document of title reflecting the Equipment is
         free and clear of encumbrances or a valid release of existing
         encumbrances;

                  (d) If the Advance is to be made for the payment of a
         Qualifying Current Indebtedness, identification of the indebtedness and
         the amount to be advanced for the payment of the indebtedness, and
         evidence of, or an acknowledgment by the applicable creditor of, the
         full payment of the indebtedness, and if the same is subject to a
         security interest in any asset of the Debtor, then a copy of an
         appropriate release and termination statement of such security
         interest. A "QUALIFYING CURRENT INDEBTEDNESS" is an indebtedness listed
         in Exhibit "B", attached hereto and incorporated herein by reference.

         1.4 The Debtor may prepay the Installment Note at any time, without
premium or penalty. If at any time the aggregate outstanding principal balance
the Installment Note exceeds the limitations of the Debt Service Ratio or the
Liquidity Ratio, then the Debtor shall immediately, without notice or demand,
prepay the Note in an amount equal to the debt reduction necessary to bring the
applicable ratio under compliance.

         1.5 Loan proceeds may be disbursed by deposit in any deposit account of
the Debtor, by an instrument payable to Debtor.

         1.6 The Debtor will use the proceeds of the Installment Loan solely for
the limited purposes specified in this Agreement, which are lawful and
authorized corporate purposes in furtherance of the business presently conducted
by the Debtor.

                                  II. INTEREST

         2.1 The Installment Note shall bear interest at the "CONTRACT RATE,"
which is defined as the "BASE RATE" plus the "MARGIN."

         2.2 The Base Rate shall equal the lowest base rate on corporate loans
posted by at least Seventy-five percent (75%) of the nation's thirty (30)
largest banks as published in the money rates section of the southwest edition
of the WALL STREET JOURNAL. If the Base Rate becomes unavailable during the term
of the Installment Note, Bank may designate a substitute index after notifying
Debtor. Bank will inform Debtor what the current Base Rate is at any time during
the term of either of the Installment Note. The Base Rate will not change more
often than once each day.

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         2.3 The Margin shall equal one percentage (1%) point.

         2.4 Notwithstanding anything contained herein to the contrary, the
Contract Rate under the Installment Note shall never be less than Six Percent
(6%) per annum.

                            III. CONDITIONS PRECEDENT

         3.1 The Bank's obligation to make an advance to the Debtor under the
Installment Note shall be subject to the terms and conditions of this Agreement
and the following conditions precedent:

                  (a) Each representation and warranty set forth in Section 4.l
         shall be true and correct as of the date of the Advance, except for
         changes subsequent to the date of this Agreement caused by transactions
         permitted under the terms of this Agreement; and

                  (b) There shall not exist any Event of Default under Section
         7.l of this Agreement or any event which, with the giving of notice or
         the lapse of time (or both) would become an Event of Default
         thereunder; and

                  (c) The Debtor shall have delivered to the Bank:

                           (l) The Installment Note duly executed by Debtor.

                           (2) A Security Agreement duly executed by Debtor, in
                  form and substance satisfactory to the Bank, granting the Bank
                  a security interest in all present and future equipment,
                  inventory, and accounts receivable of the Debtor.

                           (3) Copies of resolutions of the board of directors
                  of the Debtor and each of the Corporate Guarantors authorizing
                  the execution, delivery and performance of this Agreement, the
                  Installment Note and the Security Agreement by the Debtor and
                  the Guaranty by each of the Corporate Guarantors.

                           (4) Borrowing Resolutions duly executed by the Debtor
                  and each of the Corporate Guarantors confirming the authorized
                  signatory of this Agreement and the other documents provided
                  for herein.

                           (5) A copy of the Articles of Incorporation of the
                  Debtor and a Certificate of Good Standing as to the Debtor and
                  each Corporate Guarantor issued by the Secretary of State of
                  the state of each party's state of incorporation; a copy of
                  the Certificate of Good Standing as to the Debtor and each
                  Corporate Guarantor issued by the Secretary of State of each
                  party's state of incorporation, and a copy of the By-laws of
                  the Debtor and each Corporate Guarantor.

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                           (6) All collateral schedules, financing statements,
                  security interest, subordination agreements, releases and
                  termination statements which the Bank may request to assure
                  the creation, perfection and priority of the security
                  interests created by the Security Agreement.

                           (7) An appraisal of the Equipment which is
                  satisfactory to the Bank.

                           (8) Guaranty Agreements in form and substance
                  satisfactory to the Bank executed by William S. H. Stuart and
                  Matthew C. Flemming, (hereinafter collectively referred to as
                  Individual Guarantors) and Guaranty Agreements in form and
                  substance satisfactory to the Bank executed by Excalibur
                  Aerospace, Inc., Excalibur Steel, Inc., Excalibur Services,
                  Inc. and Shumate Machine Works, Inc. (collectively herein
                  referred to as "Corporate Guarantors") each of which
                  guarantees the payment of the Installment Note. Security
                  Agreements in form and substance satisfactory to the Bank
                  executed by each of the Corporate Guarantors guaranteeing the
                  performance of their guaranty agreements. The Individual
                  Guarantors and the Corporate Guarantors are sometime referred
                  to herein as the "Guarantors".

                           (9) UCC Financing Statement describing the collateral
                  securing the repayment of the Installment Note and UCC
                  Financing Statements for each of the Corporate Guarantors
                  securing the performance of their Guaranty Agreement.

                       IV. REPRESENTATIONS AND WARRANTIES

         4.l Debtor represents and warrants to the Bank that:

                  (a) Debtor is a corporation duly organized, existing and in
         good standing under the laws of the State of its incorporation. It has
         the corporate power to own its property and to carry on its business as
         now conducted and is duly qualified to do business in all states in
         which such qualification is required.

                  (b) Debtor is duly authorized and empowered to execute,
         deliver and perform this Agreement, the Note, and the Security
         Agreement, and to borrow money from the Bank.

                  (c) The execution and delivery of this Agreement, the
         Installment Note, and the Security Agreement, and the performance by
         the Debtor of its obligation thereunder, do not and will not conflict
         with any provision of law or the Articles of Incorporation or By-Laws
         of the Debtor or of any agreement binding upon it.

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                  (d) The execution and delivery of this Agreement, the
         Installment Note, and Security Agreement have been duly authorized by
         all necessary corporate action of the directors and shareholders of the
         Debtor; and this Agreement, the Installment Note, and the Security
         Agreement have in fact been duly executed and delivered by the Debtor
         and constitute its lawful and binding obligations, legally enforceable
         against it in accordance with their respective terms.

                  (e) No litigation, tax claims or governmental proceedings are
         pending or are threatened against the Debtor, and no judgment or order
         of any court or administrative agency is outstanding against the Debtor
         which will have a material adverse affect on the Debtor.

                  (f) The transaction evidenced by this Agreement does not
         violate any usury law or other law relating to the payment of interest
         on loans.

                  (g) The authorization, execution, delivery and performance of
         this Agreement, the Installment Note and the Security Agreement are not
         and will not be subject to the jurisdiction, approval or consent of, or
         to any requirement of registration with or notification to, any
         federal, state or local regulatory body or administrative agency.

                  (h) When the financing statement delivered pursuant to this
         Agreement is filed in the proper office where the Debtor is
         incorporated, the Bank will have a valid and perfected first security
         interest in the collateral described in the Security Agreement, subject
         to no prior security interest, assignment, lien or encumbrance except
         interests, if any, specifically approved by the Bank in writing. When
         the financing statement delivered by each Corporate Guarantor pursuant
         to this Agreement is filed in the proper office where the Corporate
         Guarantor is incorporated, the Bank will have a valid and perfected
         first security interest in the collateral described in the security
         agreement securing the performance of the guaranty agreement, subject
         to no prior security interest, assignment lien or encumbrance, except
         interests, if any, specifically approved by the Bank in writing,
         including the prior security interest in certain equipment vested in
         Mr. Tommy Worth.

                  (i) All assets of the Debtor are free and clear of all liens,
         security interests and encumbrances, except those specifically
         permitted by Bank. All pledged assets of the Corporate Guarantors are
         free and clear of all liens, security interests and encumbrances,
         except interests, if any, specifically approved by the Bank in writing,
         including the prior security interest in certain equipment vested in
         Mr. Tommy Worth.

                  (j) Debtor has filed all federal and state tax returns which
         are required to be filed, and all taxes shown as due thereon have been
         paid.

                  (k) Financial statements furnished to the Bank by the Debtor
         and each of the Guarantors were prepared in accordance with generally
         accepted accounting principles consistently maintained, except as
         expressly therein set forth. They present fairly the financial
         condition of the Debtor and each of the Guarantors as of the dates
         thereof. The annual reports disclose fully all liabilities of the
         Debtor whether or not contingent, with respect to any pension plan.
         Since the date of the most recent financial statement, there has been
         no material adverse change in the financial condition of the Debtor or
         any of the Guarantors.

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                  (l) Each qualified retirement plan of the Debtor presently
         conforms and is administered in a manner consistent with the Employee
         Retirement Income Security Act of 1974.

                  (m) All books and records pertaining to the accounts of Debtor
         will be located in Tulsa, Oklahoma.

                            V. AFFIRMATIVE COVENANTS

         5.1 The Debtor covenants and agrees that it will:

                  (a) Pay all taxes, assessments and governmental charges prior
         to the time when any penalties or interest accrue, unless contested in
         good faith with an adequate reserve for payment.

                  (b) Continue the conduct of its business; maintain its
         corporate existence in good standing; maintain all rights, licenses and
         franchises; comply with all applicable laws and regulations.

                  (c) Maintain its property in good working order and condition;
         make all needful and proper repairs, replacements, additions and
         improvements thereto.

                  (d) Deliver to the Bank and to any participant designated by
         the Bank:

                           (1) Beginning August 1, 2002, quarterly balance sheet
                  and income statements of the Debtor to be delivered thirty
                  (30) days after its due date.

                           (2) Beginning May 1, 2003, annual audited financial
                  statements of the Debtor to be delivered within ninety (90)
                  days after its due date.

                           (3) Beginning June 1, 2002, monthly Accounts
                  Receivable Aging/Listings and Borrowing Base, and inventory
                  listing of the Debtor to be delivered fifteen (15) days after
                  the end of each month.

                           (4) Beginning March 11, 2003, annual financial
                  statement of Guarantor William Stuart to be delivered ten (10)
                  days after its due date.

                           (5) Beginning January 29, 2003, annual financial
                  statement of Guarantor Matthew Flemming to be delivered ten
                  (10) days after its due date.

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                           (6) Annual financial statement of Guarantor Excalibur
                  Aerospace, Inc. to be delivered ninety (90) days after the end
                  of each one of its fiscal years.

                           (7) Annual financial statement of Guarantor Excalibur
                  Steel, Inc. to be delivered ninety (90) days after the end of
                  each one of its fiscal years.

                           (8) Annual financial statement of Guarantor Excalibur
                  Services, Inc. to be delivered ninety (90) days after the end
                  of each one of its fiscal years.

                           (9) Annual financial statement of Guarantor Shumate
                  Machine Works, Inc. to be delivered ninety (90) days after the
                  end of each one of its fiscal years.

                  (e) Debtor shall maintain a net worth of at least THREE
         MILLION FIVE HUNDRED THOUSAND AND NO/100 DOLLARS ($3,500,000.00). The
         Debtor will provide the Bank within forty-five (45) days after the
         close of each of its fiscal years information reasonably needed by the
         Bank to determine Debtor's net worth.

                  (f) Within ninety (90) days of the execution of this
         Agreement, the Debtor will achieve a "DEBT SERVICE RATIO" of no greater
         than 1.5 to 1.0. The Debtor will provide the Bank within forty-five
         (45) days after the close of each of its fiscal year's quarter with
         information reasonably needed by the Bank to determine the Debt Service
         Ratio. As used herein, Debt Service Ratio shall be defined as the ratio
         of the Debtor's earnings before interest, taxes and depreciation to
         Debtor's debt service.

                  (g) Within ninety (90) days of the execution of this
         Agreement, the Debtor will achieve a "LIQUIDITY RATIO" of 1.0 to 1.0.
         The Debtor will provide the Bank, within forty-five (45) days after the
         close of each of its fiscal year's quarter, information reasonably
         needed by the Bank to determine the Liquidity Ratio. As used herein,
         Liquidity Ratio shall be defined as the ratio of the Debtor's current
         assets to the Debtor's current liabilities.

                  (h) Permit any officer, employee, attorney or accountant for
         the Bank or for any participant designated by the Bank, to review, make
         extracts from, or copy any and all of its corporate and financial
         books, records and properties of the Debtor at all times during
         ordinary business hours.

                  (i) Maintain property, liability, worker's compensation and
         other forms of insurance in amounts designated at any time or from time
         to time by the Bank.

                  (j) Not change any of the Debtor's senior management without
         the Bank's prior approval.

                  (k) Do, make, procure, execute and deliver, at its expense,
         all acts, things, writings and assurances which the Bank may at any
         time reasonably request in order to protect, assure, or enforce the
         interests, rights and remedies of the Bank created by, provided in or
         emanating from this Agreement, and the Security Agreement.

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         5.2 The Debtor further covenants and agrees that it will notify the
Bank in writing promptly, and in any event within five (5) business days, in the
event of the occurrence of any Event of Default defined or described in Section
8.1 or the occurrence of any event which, with the giving of notice or lapse of
time (or both), would become such an Event of Default.

                             VI. NEGATIVE COVENANTS

         6.1 The Debtor covenants and agrees that it will not, without the
express written consent of the Bank:

                  (a) Become or remain liable in any manner in respect of any
         indebtedness or contractual liability (including, without limitation,
         notes, bonds, debentures, loans, guaranties, and pension liabilities,
         whether or not contingent and whether or not subordinated), except:

                           (1) Indebtedness arising under this Agreement, or
                  other indebtedness to the Bank;

                           (2) Presently outstanding unsecured indebtedness, if
                  any, to the extent disclosed in the financial statements
                  identified in Section 4.1(k);

                           (3) Unsecured indebtedness, other than for money
                  borrowed or for the purchase of a capital asset, incurred in
                  the ordinary course of its business, which becomes due and
                  must be fully satisfied within twelve (12) months after the
                  date on which it is incurred;

                           (4) Unsecured indebtedness subordinated in right of
                  payment to all indebtedness owed to the Bank pursuant to a
                  debt subordination agreement accepted or approved in writing
                  by the Bank;

                  (b) Create, incur or cause to exist any mortgage, security
         interest, encumbrance, lien or other charge of any kind upon any of its
         property or assets, whether now owned or hereafter acquired, except:

                           (1) The security interests created by the Security
                  Agreement;

                           (2) Liens for taxes or assessments not yet due or
                  contested in good faith by appropriate proceedings;

                           (3) Security interest approved by the Bank in
                  writing, at its sole discretion; and

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                           (4) Other liens, charges and encumbrances incidental
                  to the conduct of its business or the ownership of its
                  property which were not incurred in connection with the
                  borrowing of money or the purchase of property on credit and
                  which do not in the aggregate materially detract from the
                  value of its property or materially impair the use thereof in
                  its business.

                  (c) Expend or contract to expend funds for the purchase or
         lease of any property, whether real, personal or mixed, except current
         assets purchased in the ordinary course of business.

                  (d) Sell, lease or otherwise dispose of all or any substantial
         part of its property.

                  (e) Consolidate or merge with, or acquire assets of, any other
         corporation or business.

                  (f) Substantially alter the nature of the business in which it
         is engaged, or enter into a new business.

                  (g) Without the Bank's prior approval declare or pay any
         dividends or purchase or redeem any of its capital stock, or otherwise
         distribute any property on account of its capital stock.

                  (h) Purchase stock or securities of, extend credit to or make
         investments in, become liable as surety for, or guarantee or endorse
         any obligation of, any person, firm or corporation, except direct
         obligations of the United States and commercial bank deposits.

                  (i) In any manner transfer any property without prior or
         present receipt of full and adequate consideration.

                  (j) Permit funds to be owing to the Debtor by the directors or
         shareholders of Debtor, or members of their families, on account of any
         loan, credit sale or other transaction or event.

                  (k) Pay excessive or unreasonable salaries, bonuses, fees,
         commissions or other compensation.

                  (l) Permit any default or event of default to occur under any
         note, loan agreement, lease, mortgage, contract for deed, security
         agreement or other contractual obligation binding upon Debtor.

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                             VII. EVENTS OF DEFAULT

         7.1 Each of the following occurrences shall constitute an Event of
Default:

                  (a) The Debtor shall fail to pay any installment of interest
         due on the Installment Note and such failure shall continue for five
         (5) calendar days.

                  (b) The Debtor shall fail to perform or observe any of the
         covenants contained in Sections V and VI of this Agreement, and such
         failure shall continue for a period of ten (10) calendar days.

                  (c) Any representation or warranty contained in Section IV
         shall prove to have been materially false or misleading as of this date
         or (except to the extent of changes caused by transactions permitted
         under this Agreement) as of any date on which a loan is made to the
         Debtor under this Agreement; or any other representation or warranty
         made by or on behalf of the Debtor to the Bank (whether made in this
         Agreement, in any financial statement, report or certificate furnished
         pursuant to this Agreement, or otherwise in any manner) shall prove to
         have been false or materially misleading as of the time as of which
         such representation or warranty was made.

                  (d) The Debtor shall fail to pay when due any substantial
         liability or liabilities other than the Installment Note; or the
         maturity of any such liability or liabilities shall be accelerated; or
         any breach, default or event of default shall occur under any
         indenture, loan agreement, note or agreement pertaining to any such
         liability, entitling a creditor or representative of creditors of the
         Debtor, acting with or without the consent or concurrence of other
         creditors and with or without notice or a period of grace, to
         accelerate the maturity of or demand payment of any such liability,
         whether such breach, default or event of default is waived by the
         creditor so entitled. "Substantial" for these purposes, means in excess
         of Twenty-Five Thousand and NO/100 Dollars ($25,000).

                  (e) Any breach, default or event of default shall occur under
         the Security Agreement, or under any other agreement, conveyance or
         instrument now in effect or hereafter made for the benefit of the Bank
         in connection with or as security for indebtedness arising under this
         Agreement.

                  (f) The Debtor shall have procured, permitted or suffered,
         voluntarily or involuntarily, any creditor to obtain a lien not
         permitted herein upon all or any substantial part of its property by
         operation of law or the appointment by any court or public authority
         (other than a bankruptcy court) of any receiver or trustee to take
         charge of, or the sequestration of, all or any substantial part of its
         property; or shall commit an act of bankruptcy under the United States
         Bankruptcy Act (as now or hereafter amended); or shall file or have
         filed against it, voluntarily or involuntarily, a petition in
         bankruptcy or for reorganization or the adoption of an arrangement
         under the United States Bankruptcy Act (as now or hereafter amended);
         or shall initiate or have initiated against it, voluntarily or
         involuntarily, any act, process or proceeding for liquidation,
         dissolution, arrangement, composition or reorganization or under any
         insolvency law or other statute or law providing for a modification or
         adjustment of the rights of creditors.

                                       10
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                  (g) Any event or reportable event which the Bank in good faith
         determines to constitute potential grounds for the termination of any
         employee benefit plan or other plan maintained for employees of the
         Debtor, or for the appointment of a trustee to administer any such
         plan, shall have occurred and be continuing thirty (30) calendar days
         after written notice to such effect shall have been given by the Bank
         to the Debtor; or any such plan shall be terminated, or a trustee shall
         be appointed to administer any such plan; or the Pension Benefit
         Guaranty Corporation shall institute proceedings to terminate any such
         plan or to appoint a trustee to administer any such plan.

         7.2 Upon the occurrence of an Event of Default or at any time
thereafter until such Event of Default is waived in writing, if capable of being
cured, is cured to the written satisfaction of the Bank, the Bank at its option
may exercise one or more of all of the following rights and remedies:

                  (a) Terminate the obligations of the Bank under this
         Agreement; and

                  (b) Declare the indebtedness evidenced by the Installment Note
         to be immediately due and payable, and the same shall thereupon be
         immediately due and payable, without notice or presentment or other
         demand, and the Bank thereupon may exercise and enforce all rights and
         remedies available to it to collect the indebtedness evidenced by the
         Installment Note; and

                  (c) Exercise and enforce all rights and remedies accorded upon
         default to a secured party; and

                  (d) Without notice to or demand upon the Debtor or any other
         person, off-set any indebtedness then owed to the Bank by the Debtor,
         whether or not such indebtedness is then due, against the indebtedness
         evidenced by the Installment Note (including, without limitation,
         indebtedness transferred by the Bank to a third party by participation,
         negotiation, assignment, succession or otherwise) and any other
         indebtedness then owed by the Debtor to the Bank, whether or not then
         due, and exercise any and all other rights of set off, application or
         banker's lien available to the Bank by law or agreement.

         7.3 Any Event of Default may be waived in writing by the Bank, but not
otherwise; and the failure to exercise the rights and remedies referred to in
Paragraph 7.2 shall not operate as a waiver or otherwise preclude enforcement of
such rights and remedies. A waiver shall be effective only in the specific
instance and for the specific purpose given. The rights and remedies of the Bank
shall be cumulative and the exercise or enforcement of any one right or remedy
shall neither be a condition to nor bar the exercise and enforcement of any
other.

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         7.4 The Debtor agrees to pay the Bank, on demand, the amount of all
out-of-pocket expenses, including the reasonable fees and disbursements of legal
counsel for the Bank, incurred or paid by the Bank in connection with or as a
result of the exercise or enforcement of any right or remedy referred to in
Section 4.2, except to the extent payment of the same by the Debtor may be
prohibited by law.

                               VIII. MISCELLANEOUS

         8.1 All notices to be given to the Debtor hereunder shall be
sufficiently given if sent in writing by certified or registered mail, addressed
to the Debtor at 16825 Northcase Drive, Suite 630, Houston, TX 77060, Attention:
CFO, and to the Bank at P.O. Box 521500, Tulsa, OK 74152, Attention: President,
or addressed to such other address or to the attention of such other person as
any party may from time to time designate in written notice to the other party.

         8.2 The Debtor shall pay to the Bank a loan fee of 1/4 of 1% of the
principal amount of the Installment Note, and the amount of all reasonable
out-of-pocket expenses, including the fees, and disbursements of legal counsel
for the Bank paid or incurred by the Bank in connection with the preparation,
execution, delivery and performance of this Agreement, the Installment Note, the
Security Agreement, the Guaranties and all documents deemed necessary by the
Bank. The Debtor agrees to indemnify and hold harmless the Bank from and against
any and all taxes (including documentary taxes), assessments and other charges
(except net income taxes) levied or based upon or payable in connection with the
execution, delivery and performance of this Agreement or the Note, the Security
Agreement, or levied or based upon payable in connection with, or measured by
the indebtedness evidenced by the Revolving.

         8.3 This Agreement shall inure to the benefit of, extend to and be
binding upon the respective successors and assigns of the Debtor and the Bank,
including any participant of the Bank. The term "Bank," as used herein, includes
any subsequent holder of the Installment Note. This Agreement cannot be
modified, amended, waived, canceled, terminated or otherwise changed orally.
This Agreement is made and the Note will be issued under, and each shall be
governed and construed by the substantive laws of the State of Oklahoma. If any
provision of this Agreement is held invalid, illegal or unenforceable in any
respect, such invalidity, illegality or unenforceability shall not affect other
provisions which can be given effect, and this Agreement shall be given effect,
and shall be construed as if such invalid or illegal or unenforceable provision
had never been contained herein. All representations and warranties contained in
this Agreement shall survive the execution and delivery of this Agreement and
the issuance of the Note.

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         IN WITNESS WHEREOF, this Agreement is executed as of the day and year
first above written.

                                    "DEBTOR"

                                    Excalibur Holdings, Inc.
                                    a Texas corporation

                                    By: /S/ William S. H. Stuart
                                       -----------------------------------------
                                       William S. H. Stuart, President and Chief
                                       Executive Officer

                                    "BANK"
                                    Stillwater National Bank and Trust Company,
                                    Stillwater, Oklahoma,

                                    /S/ Joe E. Staires
                                    ------------------------------------
                                    Joe E. Staires, Senior Vice-President

                                    "INDIVIDUAL GUARANTORS"

                                    /S/ William S. H. Stuart
                                    ------------------------------------
                                    William S. H. Stuart

                                    ------------------------------------
                                    Matthew C. Flemming

                                    "CORPORATE GUARANTORS"

                                    Excalibur Aerospace, Inc.
                                    an Oklahoma corporation

                                    By: /S/ William S. H. Stuart
                                       -----------------------------------------
                                       William S. H. Stuart, President and Chief
                                       Executive Officer

                                       13
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                                     Excalibur Steel, Inc.
                                     an Oklahoma corporation

                                    By: /S/ William S. H. Stuart
                                       -----------------------------------------
                                       William S. H. Stuart, President and Chief
                                       Executive Officer

                                    Excalibur Services, Inc.
                                    an Oklahoma corporation

                                    By: /S/ William S. H. Stuart
                                       -----------------------------------------
                                       William S. H. Stuart, President and Chief
                                       Executive Officer

                                    Shumate Machine Works, Inc.
                                    a Texas corporation

                                    By: /S/ William S. H. Stuart
                                       -----------------------------------------
                                       William S. H. Stuart, President and Chief
                                       Executive Officer

                                       14<PAGE>

                                                                    EXHIBIT 10.9

                              EMPLOYMENT AGREEMENT

         This EMPLOYMENT AGREEMENT (this "Agreement") is made and entered into
effective as of the 1st day of December, 2001 (the "Effective Date"), by and
between EXCALIBUR HOLDINGS, INC., a Texas corporation (hereafter referred to as
the "Company"), and WILLIAM S.H. STUART (hereafter referred to as "Executive").
The Company and Executive may sometimes hereafter be referred to singularly as a
"Party" or collectively as the "Parties."

                              W I T N E S S E T H:

                      1. EMPLOYMENT AND DUTIES OF EXECUTIVE

         On the terms and subjects to the conditions hereinafter set forth, and
beginning as of the Effective Date, the Company employs Executive as its
President/Chief Executive Officer, and the Executive will serve as the Company's
employee in that position. Additionally, Executive shall serve as
President/Chief Executive Officer of the Company's subsidiaries: (i) Excalibur
Steel, Inc., an Oklahoma corporation, (ii) Excalibur Services, Inc., an Oklahoma
corporation, and (iii) Excalibur Aerospace, Inc., an Oklahoma corporation.
Executive shall perform such duties, and have such power, authority, functions,
and responsibilities for the Company and corporations affiliated with the
Company as are commensurate and consistent with his employment as the Company's
President/Chief Executive Officer. Executive shall also have such additional
powers, authority, functions, duties, and responsibilities as may be assigned to
him by the Board of Directors of the Company (the "Board"). Executive shall
report to the Board. Additionally, if Executive is serving as a member of the
Board, then at any such time, any and all references in this Agreement to the
Board or to decisions to be made by or at the discretion or judgment of the
Board shall be interpreted to mean that Executive shall NOT take part in any
such decision or the deliberations related thereto in his capacity as a member
of the Board.

                             2. PLACE OF EMPLOYMENT

         The required duties of Executive under this Agreement shall be
performed by Executive at the Company's offices in the Houston, Texas, and in
such other place or places to which Company may, from time to time, request
Executive to travel in connection with the duties of Executive under this
Agreement; provided, however, that Executive shall not, whether by a change in
the scope or location of performance of Executive's duties, be required to
change his place of residence from the Houston, Texas area.

                                       1
<PAGE>

                      3. TIME TO BE DEVOTED TO CONTRACTUAL
                               DUTIES OF EXECUTIVE

         Executive shall give his best efforts and endeavors, on a full time
basis, to the discharge of his duties under this Agreement and shall not, at any
time during the Term (hereafter defined), engage in any business activity other
than the business activities permitted or required hereunder, or enter into the
services of or be employed in any capacity or for any purpose by any individual,
firm, association, organization, partnership (general or limited), corporation,
limited liability company, or other party or legal entity other than the Company
(or any affiliate of the Company), on a fee or salary or other compensatory
basis, it being the intention of the Company and Executive that the capacity in
which Executive is hired by the Company under this Agreement represents a
full-time duty and responsibility. The foregoing shall not be interpreted to
prohibit Executive from engaging in recreational, charitable, religious, or
community service activities outside the scope of Executive's employment under
this Agreement, or from making passive investments in businesses or enterprises,
so long as (i) such activities or investments, individually or in the aggregate,
do not interfere or require services on the part of Executive that interfere
with Executive's performance of his duties and obligations under this Agreement;
(ii) such activities or investments do not involve or relate to any activities
or business in competition with the business of the Company or any affiliates of
the Company, and (iii) Executive has complied with Paragraph 10 of this
Agreement with respect to each such activity and investment.

                              4. TERM OF EMPLOYMENT

         The term of the Company's employment of Executive shall be for a period
of three (3) years from the date hereof (such period being referred to as the
"Initial Term"). After the expiration of the Initial Term, the employment of
Executive shall continue for successive three (3) month periods. The Initial
Term PLUS any period or periods of time during which the employment of Executive
continues with the Company after the expiration of the Initial Term is sometimes
referred to as the "Term."

                                       2
<PAGE>

                          5. COMPENSATION OF EXECUTIVE

         A. As compensation for the services and duties performed and to be
performed by Executive as provided in this Agreement, the Company agrees to pay
Executive a salary in the amount of TWO HUNDRED TWENTY FIVE THOUSAND AND
NO/100THS DOLLARS ($225,000.00) per annum, less applicable withholding,
F.I.C.A., and other lawful deductions, such salary to be payable semi-monthly,
in equal installments, in arrears, and otherwise in accordance with the
Company's payroll policies in effect from time to time. The Board will review
the Executive's compensation annually to consider possible upward adjustments
(it being agreed that the base salary shall not be reduced during the Initial
Term). Such adjustments will always be at least equal to (a) those of similarly
compensated executives, (b) the annual cost of living index as published in the
Southwest Edition of the Wall Street Journal, or (c) ten percent (10%) per
annum, whichever is greatest. Additionally, if the Company's common stock or
other securities are ever registered on or offered for sale to the public on a
nationally recognized securities exchange, then Executive's base salary shall be
increased to an amount comparable to executives with publicly traded companies
who hold a position similar to that of Executive and with similar
responsibilities to those of Executive.

         B. Executive shall also be entitled to a bonus, from time to time,
depending upon Executive's performance and achievement of specific goals, which
bonuses shall be payable in cash, options, and common stock of the Company.
However, any bonus in excess of fifty percent (50%) of Executive's base salary
shall be determined only by authority of the Board.

         C. Executive shall be authorized to incur, and shall be entitled to
receive prompt reimbursement for, all reasonable expenses incurred by Executive
in performing his duties and carrying out the responsibilities hereunder,
including business meals, entertainment, and travel expenses, provided that
Executive complies with all of the applicable policies, practices and procedures
of the Company related to the submission of expense reports, receipts, or
similar documentation of those expenses. The Company shall either pay directly,
or reimburse Executive for such expenses in accordance with Company policies.
Executive shall be entitled to a corporate credit card issued by the Company,
which shall be used for the sole purpose of incurring the expenses referenced in
this Paragraph C.

         D. In addition to the amounts set forth above, for the term of
Executive's employment, the Company agrees to provide to Executive, at the
Company's sole expense, health insurance coverage for Executive (with any such
coverage for Executive's dependents, if desired by Executive, to be provided at
the Company's sole expense) under the health insurance plan maintained by the
Company from time to time. The Company shall also provide, at the Company's sole
expense, life insurance coverage on Executive's life in a face amount at least
equal to: (i) five (5) times Executive's base salary, plus (ii) the amount of
any indebtedness of the Company and/or its affiliates which Executive has
personally guaranteed, and shall also provide Executive with both long term and
short term disability insurance for Executive in amounts and under terms
acceptable to the Company, at the Company's sole cost and expense. Also,
Executive shall have the option to participate in any salary deferral, 401(k),
SEP, or savings plan or other similar plan which the Company or its successors
or assigns makes available to its employees. Executive shall be required to
comply with the conditions attendant to coverage by such plans and shall comply
with and be entitled to benefits only in accordance with the terms and
conditions of such plans as they may be amended from time to time.

                                       3
<PAGE>

         E. Executive shall also receive an automobile allowance of $1,200.00
per month, payable by the Company on or before the first (1st) day of each
month, which may be used by Executive towards the purchase or lease of an
automobile, which automobile may be used by Executive for both business purposes
and for Executive's personal use. Executive shall maintain insurance on such
vehicle at Executive's cost and expense in amounts and coverage acceptable to
Company.

         F. The Company shall also pay for Executive's membership at a health
club of Executive's choice, such amounts not to exceed $5,000.00 for initial
club membership fee, and not to exceed $500.00 per month for membership dues
(provided that if Executive is, as of the Effective Date, already a member of a
health club, then the Company shall only be obligated to pay Executive's monthly
dues at such club, and shall not be obligated to pay for a new membership for
Executive at a new or different club).

         G. During the Term, Executive shall be entitled to four (4) weeks of
annual vacation time determined in accordance with the vacation policies of the
Company from time to time in effect.

         H. No additional compensation (above the compensation referred to in
this Section 5) shall be due or payable by Company to Executive under this
Agreement, but nothing in this Agreement shall prohibit the Company from paying
Executive any additional amount as a bonus or otherwise, as the Company may
determine from time to time.

           6. COVENANTS, REPRESENTATIONS, AND WARRANTIES OF EXECUTIVE

         A. Executive covenants, agrees, and promises that during the Term: (a)
except as permitted under this Agreement, Executive will not engage, directly or
indirectly, in any business other than the business of the Company, except at
the direction of or with the prior written approval of the Company; (b)
Executive will truthfully and accurately make, maintain, and preserve all
records and reports that the Company may from time to time request or require;
(c) Executive will fully account for all money, records, goods, wares,
merchandise, and other property belonging to the Company and/or to the Company's
clients of which Executive has custody, and will pay over and/or deliver same
promptly whenever and however Executive may be directed to do so; (d) Executive
will (i) obey all rules, regulations, and special instructions applicable to him
and (ii) be loyal and faithful to the Company at all times; and (e) Executive
agrees that upon termination of his employment hereunder for any reason he will
immediately surrender and turn over to the Company all books, records, forms,
mailing lists, client lists, potential client lists, specifications, formulae,
data, processes, papers, and writings related to the Company's business and all
other property belonging to the Company together with, except as hereinafter set
forth, all copies of the foregoing, it being understood and agreed that the same
are the Company's sole property.

         B. Executive hereby represents and warrants to Company that (a)
Executive is experienced in the subject matter of this Agreement and fully
competent to exercise and discharge his duties and obligations under this
Agreement; (b) Executive has all requisite licenses and permits, if any,
required to perform his duties and obligations under this Agreement; and (c) the
execution of this Agreement by Executive does not violate the terms or
conditions of any prior employment agreements to which Executive has been a
party, and at the time of execution of this Agreement, Executive is not a party
to any other employment or consulting agreement.

                                       4
<PAGE>

                                 7. TERMINATION

         A. The employment of Executive may be terminated upon the occurrence of
any one of the following events:

                  (a) BUSINESS REASON.

                           (i) The Company MAY NOT terminate Executive at any
         time prior to the expiration of the Initial Term other than for Cause
         (as defined in Paragraph 7.A(b)). From and after the expiration of the
         Initial Term, the Company may, at its election, and for any reason
         (i.e., any lawful reason other than Cause) and effective immediately
         (or such longer period as determined by the Company in its sole
         discretion), may terminate this Agreement and Executive's employment
         with the Company hereunder upon written notice to Executive.

                           (ii) Executive, effective no less than sixty (60)
         days after written notice thereof to the Company, may resign his
         employment with the Company, with or without cause.

                  (b) WITH CAUSE. The Company may, upon written notice effective
immediately, terminate the employment of Executive at any time during the Term
for "Cause." For purposes of this Agreement, "Cause" shall mean the following:
(i) if Executive should become Disabled (hereafter defined) for a period of one
hundred twenty (120) days during any twelve (12) month period, whether or not
such days are consecutive (as used herein, "Disabled" shall mean the inability
of Executive, on account of a mental, physical, or other condition, to perform
his normal job functions as determined by at least two of three medical
physicians or by agreement of the Company and Executive or his designee (if the
determination is to be made by medical physicians, the Executive or his designee
shall appoint one such physician, the Company shall appoint one, and the two so
appointed shall appoint the third medical physician); (ii) if Executive should
commit intentional misconduct in connection with the performance of any of
Executive's duties, including, without limitation, (1) misappropriation of funds
or property of the Company, or of any affiliate of the Company, (2) securing or
attempting to secure personally any profit in connection with any transaction
entered into on behalf of the Company or of any affiliate of the Company, or (3)
making any misrepresentation to the Company or any affiliate of the Company; or
(iii) if Executive deliberately and intentionally continues to fail to
substantially perform his duties and responsibilities hereunder (except by
reason of Executive's incapacity due to physical or mental illness or injury)
for a period of thirty (30) days after the Board has delivered to Executive a
written demand for substantial performance hereunder which specifically
identifies the basis for the Board's determination that the Executive has not
substantially performed his duties and responsibilities hereunder, such period
being referred to as the "Grace Period"; provided, however, for the purposes of
this Section 7.A(b)(iii), the Company shall not have Cause to terminate
Executive unless (1) at a meeting of the Board called and held following the
Grace Period in the city in which the Company's principal executive offices are
located of which Executive was given not less than ten (10) business days' prior
written notice and at which Executive was afforded the opportunity to be
represented by counsel, appear and be heard, a majority of the Board shall adopt
a written resolution which (A) sets forth the determination of a majority of the
Board that Executive has failed to substantially perform his duties and

                                       5
<PAGE>

responsibilities hereunder (except by reason of his incapacity due to physical
or mental illness or injury) and such failure has continued past the Grace
Period, and (B) specifically identifies the bases for that determination, and
(2) the Company, at the written direction of a majority of the Board (excluding
Executive if Executive is a member of the Board), shall deliver to Executive a
notice of termination for Cause to which a copy of the aforesaid Board
resolution, certified as being true and correct by the secretary or any
assistant secretary of the Company, is attached. For the purposes of this
Section 7.A(b)(iii), no act or failure to act on the part of Executive shall be
considered "deliberate and intentional" unless it is taken or omitted to be
taken by Executive in bad faith or without a reasonable belief that Executive's
act or omission was in the best interest of the Company. If Executive shall be a
member of the Board, then Executive shall not participate in any determination
of the Board described in this Section 7.A(b) and the majority of the Board
shall be determined from those members of the Board participating in such
determination.

                  (c) DEATH OF EXECUTIVE. This Agreement will terminate
automatically on the death of the Executive.

                  (d) RESIGNATION FOR "GOOD REASON" OR "CHANGE-OF-CONTROL."
"Good Reason" is defined in this Agreement to mean the Company's failure to
comply with a material portion of this Agreement, which failure has not been by
the Company within thirty (30) days after receipt by the Company of written
notice of such failure by Executive. "Change of Control," as used in this
Agreement, shall mean: (a) a change in the Board such that the persons who were
directors at the beginning of any two (2) year period (and any new director
whose election was approved by at least two-thirds of the directors who either
were directors at the beginning of the period or whose election was so approved)
cease to constitute a majority of the Board, (b) other than the Contemplated
Transaction (hereafter defined), a re-organization, merger, or consolidation of
the Company with or into another entity where those persons who were in control
of the Company immediately prior to the consummation of such transaction are no
longer in control of the Company (or any other entity that is the survivor of
such transaction) immediately subsequent to the consummation of such
transaction, or (c) other than the Contemplated Transaction, the transfer, sale,
exchange or conveyance (whether in one transaction or in a series of related
transactions) of more than fifty percent (50%) of the voting stock of the
Company. With respect to a resignation for Good Reason, Executive shall have the
right, at his sole discretion, to resign by delivering written notice of such
resignation to the Company within sixty (60) days of an event constituting Good
Reason, as defined above. With respect to a Change of Control, Executive shall
have the right at his sole discretion, for a period of six (6) months following
the Change of Control "event," to determine his compatibility or ability to
maintain (in his sole discretion) a good working relationship with the new
Board, shareholders, and/or organization (as applicable). The Executive may
exercise the right of resignation for any reason during a six (6) month period
following the Change of Control. For the purposes of the foregoing provisions of
this Paragraph 7.A.(d), a person or group of persons "controls" an Entity if
such person or persons own, in the aggregate, directly, or indirectly, or has
the right to vote, more than fifty percent (50%) of the beneficial interests in
such entity or if, through other agreements (e.g., shareholders agreements) has
the right to direct the policies and/or business of such entity (and "control"
shall include control held indirectly through one or more tiers of subsidiary or

                                       6
<PAGE>

intervening entities [such as, by way of example only, corporations,
partnerships, trusts, or limited liability companies]). For the purposes of this
Agreement, the "Contemplated Transaction" shall mean the transaction or
transactions by which the Company causes the common stock of the Company (which
shall include the equity interests of any other corporation, partnership,
limited liability company, trust, or other entity that is successor to the
Company by merger, consolidation, or otherwise) to become "Publicly Traded". The
term "Publicly Traded" shall mean that the entity in question has become subject
to the reporting requirements of Section 13 or 15(d) of the Securities Exchange
Act of 1934, as amended.

         B. In the event of the termination of the employment of Executive or
Executive's resignation, Executive shall be entitled to compensation under
Paragraph 5.A earned by him prior to the date of termination as provided herein.

         C. If DURING THE INITIAL TERM: (i) the Company terminates Executive's
employment for any reason OTHER THAN under Paragraphs 7.A(b)(ii) or (iii) (e.g.,
a termination under Section 7.A(a) (i)or 7.A(b)(i)); or (ii) Executive's
employment with the Company is terminated due to Executive's death under
Paragraph 7.A(c), then Executive (or his estate, spouse and/or dependents, as
applicable) shall be entitled to and shall receive, as his or its, or their sole
and exclusive remedy (Executive hereby waiving all other rights or remedies in
the event of such a termination), a severance payment equal to: (a) the benefits
to or for the benefit of Executive and Executive's family under Paragraph 5.D
and the automobile allowance under Paragraph 5.F. all for the balance of the
Initial Term; PLUS (b) the GREATER OF (I) Executive's base salary under
Paragraph 5.A for the balance of the Initial Term, or (II) Executive's then
applicable base salary under Paragraph 5.A for one (1) year, all of which shall
be paid monthly following the termination of employment for the balance of the
Initial Term or for such one (1) year period (as applicable).

         D. If AFTER THE EXPIRATION OF THE INITIAL TERM: (i) the Company
terminates Executive's employment for any reason OTHER THAN under Paragraphs
7.A(b)(ii) or (iii) (e.g., a termination under Section 7.A(a)(i) or 7.A(b)(i));
or (ii) Executive's employment with the Company is terminated due to Executive's
death under Paragraph 7.A(c), then Executive (or his estate, spouse and/or
dependents, as applicable) shall be entitled to and shall receive, as his or
its, or their sole and exclusive remedy, a severance payment equal to
Executive's then applicable base salary under Paragraph 5.A for one (1) year,
all of which shall be paid monthly following the termination of employment for
such one (1) year period (as applicable).

         E. If: (i) Executive resigns from his employment with the Company under
(or if this Agreement is terminated under, as applicable) Paragraphs 7.A(a)(ii),
or 7.A(e) at any time; or (ii) the Company terminates the employment of
Executive pursuant to Paragraphs 7.A(b)(ii) or (iii) at any time, then the
Company shall have the obligation to pay to Executive all amounts earned under
Paragraph 5.A prior to the termination of employment, but the Company shall have
no obligation to pay Executive any amount otherwise coming due and payable under
this Agreement after the date of such termination and Executive shall be
entitled to no other or further compensation as of the date of termination of
his employment or thereafter.

         F. Additionally, if Executive resigns from his employment with the
Company under Paragraph 7.A(d) at any time, Executive shall be entitled to and
shall receive, as his sole and exclusive remedy (Executive hereby waiving all
other rights or remedies in the event of such a resignation), a severance
payment equal to (a) the benefits to or for the benefit of Executive and
Executive's family under Paragraph 5.D and the automobile allowance under

                                       7
<PAGE>

Paragraph 5.F. all for the balance of the Initial Term (if such resignation
occurs during the Initial Term); PLUS (b) the GREATER OF (I) Executive's base
salary under Paragraph 5.A for the balance of the Initial Term (if such
resignation occurs during the Initial Term), or (II) Executive's then applicable
base salary under Paragraph 5.A for two (2) years, which shall be paid monthly
following such resignation for the balance of the Initial Term, or during such
two (2) year period (as applicable).

                       8. CONFIDENTIAL INFORMATION; IDEAS

         A. Executive acknowledges that in the course of his employment under
this Agreement, he will receive certain trade secrets, know-how, mailing lists,
clients lists, potential client lists, employee records, and other sensitive,
proprietary, or confidential information and knowledge concerning the business
of the Company, and/or affiliates of the Company (hereafter collectively
referred to as "Confidential Information") which the Company desires to protect.
Executive understands that such Information is sensitive, proprietary, or
confidential, and he agrees that he will not, at any time (and whether during or
after Executive's employment with the Company), reveal such Confidential
Information to anyone outside the Company. The term "Confidential Information,"
as used in this Agreement, shall not include information that (a) is already
known to Executive from sources other than the Company; (b) is or becomes
generally available to the public other than as a result of a disclosure by
Executive; (c) is disclosed to Executive by a person or entity who is not bound
by any agreement regarding the confidential nature of such information; or (d)
is required to be disclosed by law or by regulatory or judicial process. The
provisions of this Paragraph 8 shall survive any termination or expiration of
this Agreement, and the termination of Executive's employment with the Company
(for whatever cause or reason).

         B. Executive agrees that all ideas, improvements, inventions,
discoveries, systems, techniques, formulas, devices, methods, processes,
programs, designs, models, prototypes, copyrightable works, mask works,
trademarks, service marks, trade dress, software programs, hardware
improvements, business slogans, and other things of value conceived, reduced to
practice or made or learned by Executive, either alone or with others, while
employed by the Company and for twelve (12) months thereafter that relate to the
Company's business (hereinafter collectively referred to as the "Ideas") belong
to and shall remain the sole and exclusive property of the Company forever.
Further, Executive agrees to promptly and fully disclose to the Company's Board
such Ideas in writing. In addition, Executive agrees, without additional
compensation, to cooperate and do any and all lawful things requested by Company
necessary or useful to ensure that the ownership by the Company of such Ideas is
protected. This cooperation includes, but is not limited to, executing all
documents required by the Company, and otherwise assisting Company to vest title
of such Ideas in Company and to obtain, maintain and enforce for Company's
benefit, any patents, copyrights, mask work registration, trade and service mark
registrations, or other legal protection for any Ideas in any and all countries,
during or after employment with Company. Executive hereby assigns to the Company
all of the Company's right, title and interest in and to all such Ideas and all
patents, trademarks, copyrights, other registrations, and applications which may
be obtained as a result of the Ideas, throughout the United States and all
foreign countries. Executive agrees that no Ideas shall be regarded as having
been conceived, reduced to practice, made, or learned by Executive prior to
Executive's employment.

                                       8
<PAGE>

                                 9. ARBITRATION

         A. Any legal or equitable dispute or controversy arising under, out of,
or in connection with or in relation to this Agreement; or arising out of, or
related to the employment of Executive, the terms and conditions of employment,
or the termination of Executive by the Company (other than worker's compensation
claims), shall be resolved exclusively by binding arbitration. This agreement
applies to the following allegations, disputes, and claims for relief, but is
not limited to those listed: wrongful discharge under statutory law and common
law; employment discrimination based on federal, state, or local statute,
ordinance, or governmental regulations; retaliatory discharge; compensation
disputes; tortious conduct; contractual violations; ERISA violations; FLSA (wage
and hour) violations; and other statutory and common law claims and disputes.
This provision shall apply to any such disputes or controversies involving
Executive and the Company and/or its shareholders, directors, officers,
managers, supervisors and other employees.

         B. The arbitration proceedings shall be conducted in the city in which
Executive's employment is based (unless Executive and the Company agree to
another location) in accordance with the Employment Dispute Resolution Rules
("EDR Rules") of the American Arbitration Association ("AAA") in effect at the
time a demand for arbitration is made. Executive is entitled to representation
by an attorney throughout the proceedings at Executive's own expense; however,
the Company agrees not to use an attorney in the arbitration hearing if
Executive agrees to the same.

         C. One arbitrator shall be used and shall be chosen by mutual agreement
of the parties. If, within thirty (30) days after either party notifies the
other party of an arbitrable dispute, no arbitrator has been chosen, an
arbitrator shall be chosen by AAA pursuant to its EDR Rules. The arbitrator must
be an attorney licensed to practice law in the jurisdiction in which the
arbitration is to be conducted. The arbitrator shall be required to determine
the rights of the parties in accordance with federal law and the state law of
the forum with the most substantial relationship to the conduct at issue. The
arbitrator shall have the authority to consider and grant a motion to dismiss
and motion for summary judgment applying the standards governing such motions
under the Federal Rules of Civil Procedure. The arbitrator shall coordinate, and
limit as appropriate, all pre-trial arbitral discovery, which shall include
document production, information requests, and depositions. The arbitrator shall
issue a written decision and award, which shall explain the basis of the
decision. The decision and award shall be exclusive, final, and binding on both
Executive and the Company, and all heirs, executors, administrators, successors,
and assigns. The costs and expenses of the arbitration shall be borne by the
Company, except that if Executive initiates the arbitration, Executive will pay
up to $150 towards the administrative fees charged by AAA, except that this
requirement will be waived upon a showing of financial hardship under the same
standards used in federal district court.

         D. Both Executive and the Company understand that, by agreeing to
arbitration, they are agreeing to substitute one legitimate dispute resolution
forum (arbitration) for another (litigation), and thereby are waiving the right
to have disputes resolved in court. However, Company and Executive have the
right to pursue injunctive relief for breach of paragraph 4 of this Agreement
through the judicial process without waiving the right to arbitration. This
substitution involves no surrender, by Executive or the Company, of any
statutory or common law benefit, protection, or defense.

                                       9
<PAGE>

         E. Any suit, action or proceeding to enforce any award or decision in
any arbitration conducted pursuant to this Paragraph 9 shall be brought in the
courts in Tulsa County, Oklahoma, and each Party submits to the jurisdiction of
such courts for the purposes of any such suit, action or proceeding. Each Party
irrevocably waives any objections which it may now or hereafter have to the
laying of venue of any suit, action or proceeding arising out of or relating to
this Agreement brought in the courts located in Tulsa County, Oklahoma, and
hereby waives any claim that such suit, action or proceeding brought in any such
courts has been brought in an inconvenient forum.

                            10. RESTRICTIVE COVENANTS

         A. As an inducement for Company's agreement to employ Executive, to
provide Executive with trade secrets and other Confidential Information, and to
enter into this Agreement, Executive hereby agrees that during the Term, and for
a period of twenty-four (24) full calendar months after (i) the expiration of
the Term (as the same may be extended) or (ii) the termination of this Agreement
or of Executive's employment with the Company for whatever reason or cause
(whichever may occur later), or for the maximum period of time permitted by law,
whichever is less, Executive shall not, whether for profit or not, whether on
his own behalf or on behalf of any person or firm in any capacity whatsoever,
engage in the "Prohibited Activity" (as hereinafter defined) within the
"Relevant Geographical Area" (as hereinafter defined). Serving as a partner,
member, trustee, receiver, custodian, manager, stockholder, officer, director,
owner, joint venturer, associate, employee, consultant, adviser or in any other
capacity whatsoever with respect to any person or firm engaged in the Prohibited
Activity within the Relevant Geographical Area shall be conclusively deemed
engagement in the Prohibited Activity within the Relevant Geographical Area
regardless of whether such service is for profit or not or whether such person
or firm engages in the Prohibited Activity for profit or not. For purposes
hereof, the phrase "Prohibited Activity" shall mean, directly or indirectly: (i)
soliciting the Company's customers; or (ii) working independently or for any
person or firm involved in any business engaged in by the Company and/or by any
of its subsidiaries or affiliates during the Term, including, without
limitation, steel fabrication and the design and manufacture of aerospace
products. For purposes hereof, the phrase "Relevant Geographical Area" shall
mean the area within political boundaries of the State of Oklahoma, provided,
however, if the aforesaid geographic area exceeds the maximum geographic area
permitted by law or for any other reason does not state a geographic area within
which the provisions of this Paragraph 10 are enforceable, then the provisions
of this Paragraph 10 shall apply within the maximum geographic area permitted by
law in which such provisions are enforceable.

         B. As an inducement for Company's agreement to employ Executive, to
provide Executive with trade secrets and other Confidential Information, and to
enter into this Agreement, Executive hereby agrees that during the Term, and for
a period of thirty-six (36) full calendar months after: (i) the expiration of
the Term (as the same may be extended) or (ii) the termination of Executive's
employment with the Company for whatever reason or cause (whichever may occur
later), or for the maximum period of time permitted by law, whichever is less,
Executive shall not induce or attempt to influence or persuade any employee of
Company or any of its affiliates to terminate his or her employment with the
Company (or with the applicable affiliate).

                                       10
<PAGE>

         C. In addition to all other remedies at law and in equity which the
Company might have for Executive's breach of the covenants set forth in this
Paragraph 10, the Parties agree that in the event of any breach or attempted or
threatened breach of any such covenant, the Company shall also have the right to
obtain a temporary restraining order, temporary injunction and permanent
injunction against Executive prohibiting such breach or attempted or threatened
breach, merely by proving the existence of such breach, or attempted or
threatened breach (by a preponderance of the evidence) and without the necessity
of proving either inadequacy of legal remedy or irreparable harm.

         D. Executive's covenants set forth in this Paragraph 10 are independent
and severable from every other provision of this Agreement; and the breach of
any other provision of this Agreement by the Company or any other agreement
between Executive and the Company shall not affect the validity of the
provisions of this Paragraph 10 or constitute a defense of Executive in any suit
or action brought by the Company to enforce the provisions of this Paragraph 10
or to seek any relief from Executive's breach thereof.

         E. Each of the Parties agree and stipulate that: (i) the agreements and
covenants not to compete contained in this Paragraph 10 are fair and reasonable
in light of all of the facts and circumstances of the relationship between
Executive and the Company; (ii) the consideration provided by the Company is not
illusory; and (iii) the consideration given by the Company under this Agreement
gives rise to the Company's interest in restraining and prohibiting Executive
from engaging in the Prohibited Activity within the Relevant Geographical Area
as provided under this Paragraph 10 and the covenants not to engage in the
Prohibited Activity within the Relevant Geographical Area pursuant to this
Paragraph 10 are designed to enforce such consideration. The Parties are aware,
however, that in certain circumstances, courts have refused to enforce certain
agreements not to compete. Therefore, in furtherance of and not in derogation of
the provisions of the preceding sentence, the Parties agree that if a court
should decline to enforce the any of the provisions of this Paragraph 10, such
affected provisions shall be deemed to be modified to restrict competition with
the Company to the maximum extent, in both time and geography, which the court
shall find enforceable. The provisions of this Paragraph 10 shall survive any
termination or expiration of this Agreement, and the termination of Executive's
employment with the Company (for whatever cause or reason).

                                   11. NOTICE

         Any and all notices permitted or required to be given under the terms
of this Agreement shall be in writing and may be served by certified mail, with
return receipt requested and proper postage prepaid, addressed to the Party to
be notified at the appropriate address specified below, or by delivering the
same in person to such Party, or by prepaid telegram addressed to the Party to
be notified at said address, or by Federal Express or another nationally
recognized courier service addressed to the Party to be notified at said
address. Notice given by certified mail as aforesaid shall be deemed given and
received three (3) days after mailing, whether or not actually received. Any
notice given in any other above authorized manner shall be deemed received upon
actual receipt; but shall also be deemed received upon attempted delivery if
such delivery is not accepted. The addresses of the parties are as follows:

                                       11
<PAGE>

         If to the Company:                 Excalibur Holdings, Inc.
                                            18614 Resica Falls Lane
                                            Houston, Texas  77094
                                            Attention:  Chief Executive Officer

         With a copy (which                 Haynes and Boone, L.L.P.
         shall not constitute notice)       1000 Louisiana Street, Suite 4300
         to:                                Houston, Texas  77002
                                            Attention:  Thomas J. McCaffrey

         If to Executive:                   William S.H. Stuart
                                            1906 Castle Rock
                                            Houston, Texas 77090

         The address of any Party may be changed by notice given in the manner
provided in this Paragraph.

                             12. GENERAL PROVISIONS

         A. This Agreement may not be assigned by Executive. This Agreement may
be assigned in whole or in part by the Company. Executive expressly agrees to
honor and accept such assignment or other transfer and, upon the consummation
thereof, to attorn to the Company's assignee and to perform his duties and
obligations hereunder for the benefit of the Company's assignee as if the
Company's assignee were the Company named herein. Executive further agrees that,
upon the consummation of such assignment or other transfer, all references
herein to the Company shall become and shall be deemed to be references to the
Company's assignee and the Company shall be relieved of all obligations
hereunder.

         B. This Agreement shall be governed by, construed, and enforced in
accordance with the internal, local laws of the State of Texas (without regard
to conflicts of law rules).

         C. This Agreement contains the entire agreement between the Parties
relative to the subject matter hereof and supersedes and replaces all prior
communications and agreements (oral or written) between Executive and the
Company. No variation, modification, or change of this Agreement shall be
binding upon either Party hereto unless set forth in a document duly executed by
both Parties.

         D. This Agreement is intended to express the Parties' mutual intent,
and irrespective of the Party preparing this document, no rule of construction
shall be applied against such Party, as both Parties have actively participated
in the preparation and negotiation of this Agreement.

         E. No consent or waiver, express or implied, by a Party to or of any
breach or default by the other Party in the performance by the other Party of
its obligations under this Agreement shall be deemed or construed to be a
consent or waiver to or of any other breach or default in the performance by
such other Party of the same or any other obligation of such Party under this
Agreement (e.g., any waiver or consent from the Company with respect to any term

                                       12
<PAGE>

or provisions of this Agreement or any other aspect of Executive's conduct or
employment shall be effective only in the specific instance and for the specific
purpose for which given and shall not be deemed, regardless of frequency given,
to be a further or continuing waiver or consent and the failure or delay of the
Company at any time or times to require performance of, or to exercise any of
its powers, rights, or remedies with respect to any term or provision of this
Agreement or any other aspect of Executive's conduct or employment in no manner
[except as otherwise expressly provided herein] shall affect the Company's right
at a later time to enforce any such term or provision). Failure on either
Party's part to complain of any act or failure to act of the other Party or to
declare the other Party in default, irrespective of how long such failure or
default continues, shall not constitute a waiver by such Party of such Party's
rights under this Agreement.

         F. If any provision of this Agreement or the application thereof to any
person or circumstance shall be invalid or unenforceable to any extent, the
remainder of this Agreement and the application of such provision to other
persons or circumstances shall not be affected thereby and shall be enforced to
the greatest extent permitted by law.

         G. This Agreement shall inure to the benefit of and be binding upon the
undersigned Parties and their respective permitted successors and permitted
assigns. Whenever, in this instrument, a reference to any Party is made, such
reference shall be deemed to include a reference to such Party's permitted
successors and permitted assigns; however, neither this Paragraph 12.G nor any
other portion of this Agreement shall be interpreted to constitute a consent to
any assignment or other transfer of this Agreement or any part hereof other than
pursuant to and in accordance with this Agreement's other provisions.

         H. The prevailing Party in any dispute between the Parties to this
Agreement, arising out of the interpretation, application, or enforcement of any
provision of this Agreement, shall be entitled to recover all of its reasonable
attorneys' fees and costs, whether suit be filed or not, including, without
limitation, costs and attorneys' fees related to or arising out of any
arbitration or trial or appellate proceedings or petition for review before any
other court.

                  EXECUTED, IN MULTIPLE COUNTERPARTS, each of which shall have
the force and effect of an original, as of the Effective Date.

EXCALIBUR HOLDINGS, INC., a Texas corporation

By: /S/ Dwayne Lewis                         /S/ WILLIAM S.H. STUART
   -------------------------------           -----------------------------------
   Dwayne Lewis                              WILLIAM S.H. STUART
   Chief Operating Officer
                         "Company"                                   "Executive"

                                       13

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