Document:

EMPLOYMENT AGREEMENT

         LMI AEROSPACE,  INC., a Missouri corporation (the  "Corporation"),  and
DUANE E. HAHN ("Employee") hereby agree as follows:

         1. Employment.  The Corporation  hereby employs Employee,  and Employee
accepts  employment  from  the  Corporation,   upon  the  terms  and  conditions
hereinafter set forth. Any and all employment agreements heretofore entered into
between the  Corporation and Employee are hereby  terminated and cancelled,  and
each of the parties hereto  mutually  releases and discharges the other from any
and all  obligations  and  liabilities  heretofore  or now existing  under or by
virtue of any such employment agreements,  it being the intention of the parties
hereto that this  Agreement,  effective  immediately,  shall supersede and be in
lieu of any and all prior employment agreements between them.

         2. Term of Employment.  The initial term of Employee's employment under
this Agreement shall commence on January 1, 2000 and shall terminate on December
31, 2001; provided, however, that this Agreement shall be automatically extended
for  additional  terms of one year each unless not later than  October 31 of any
year beginning in 2001, either party has given written notice to the other party
of its or his intention not to extend the term of this Agreement;  and provided,
further,  that  the  term of  employment  may be  terminated  upon  the  earlier
occurrence of any of the following events:

                  (a)  Upon  the   termination  of  the  business  or  corporate
         existence of the Corporation;

                  (b) Upon the death of the Employee;

                  (c) At the  Corporation's  option,  if Employee shall suffer a
         permanent disability;  (For the purposes of this Agreement,  "permanent
         disability"  means any physical or mental  impairment  that renders the
         Employee  unable for a period of six (6) months or more to perform  the
         essential  job  functions  of  his  position,   even  with   reasonable
         accommodation,   as   determined   by  a  physician   selected  by  the
         Corporation.  The  Employee  acknowledges  and  agrees  that  he  shall
         voluntarily  submit to a medical or  psychological  examination for the
         purpose of determining  his continued  fitness to perform the essential
         functions  of  his  position  whenever   requested  to  do  so  by  the
         Corporation.  If the  Corporation  elects to terminate  the  employment
         relationship on this basis,  the Corporation  shall notify the Employee
         or his  representative  in writing  and the  termination  shall  become
         effective on the date that such notification is given.) or

                  (d) At the Corporation's  option, upon ten (10) calendar days'
         written  notice to  Employee,  in the event of any breach or default by
         Employee of any of the terms of this  Agreement or of any of Employee's
         duties  or  obligations  hereunder,  or in the  event  the  Corporation
         determines  that Employee is not performing the duties  required of him
         hereunder to the satisfaction of the Corporation.  In lieu of providing
         ten (10) calendar days' advance written notice, the Corporation, at its
         sole option, may terminate the Employee's services  immediately and pay
         him an  amount  that is  equivalent  to ten (10)  calendar  days of his
         salary, less any deductions required by law;

                  (e) At the Corporation's  option,  without any advance notice,
         in the event that the Employee engages in conduct which, in the opinion
         of the Corporation,  (1) constitutes dishonesty of any kind (including,
         but not limited to, any  misrepresentation of facts or falsification of
         records) in  Employee's  relations,  interactions  or dealings with the
         Corporation or its customers; (2) constitutes a felony; (3) potentially
         may or will expose the Corporation to public disrepute or disgrace,  or
         potentially  may  or  will  cause  harm  to  the  customer   relations,
         operations or business  prospects of the  Corporation;  (4) constitutes
         harassment or  discrimination  towards any person  associated  with the
         Corporation,  whether an employee,  agent or customer,  based upon that
         person's race, color, national origin, sex, age, disability,  religion,
         or other  protected  status;  (5)  reflects  disruptive  or  disorderly
         conduct,  including  but not limited to,  acts of  violence,  fighting,
         intimidation or threats of violence against any person  associated with
         the Corporation,  whether an employee, agent or customer, or possessing
         a weapon while on the Corporation's  premises or while acting on behalf
         of the  Corporation;  (6) is  indicative of abusive or illegal drug use
         while  on  the   Corporation's   premises   or  while   acting  on  the
         Corporation's  behalf;  or (7)  constitutes a willful  violation of any
         governmental rules or regulations.

                  (f) At the Employee's option,  after providing the Corporation
         with at least thirty (30) calendar days advance  written  notice of his
         intention to terminate the employment relationship.

Upon  termination  of employment  for any reason,  Employee shall be entitled to
receive only the Base Salary (as that term is hereinafter  defined)  accrued but
unpaid as of the date of  termination  and shall not be entitled  to  additional
compensation except as expressly provided in this Agreement.

         3. Compensation.

                  (A) During the term of this  Agreement the  Corporation  shall
compensate  Employee for  Employee's  services  rendered  hereunder by paying to
Employee an annual  salary (the "Base  Salary")  of One Hundred  Forty  Thousand
Dollars  ($140,000.00),  less any  authorized  or required  payroll  deductions.
Payment of this salary will be made in accordance  with the payroll  policies of
the Corporation in effect from time to time.

                  (B)  With  respect  to  each  complete   fiscal  year  of  the
Corporation  during which (i) the  Employee is employed  under the terms of this
Agreement  as of the last day of such fiscal  year,  and (ii) the  Corporation's
"Annual Net Income" (as that term is  hereinafter  defined) is more than Two and
One-Half Million Dollars ($2,500,000.00), the Corporation shall pay to Employee,
in addition to the Base Salary, an annual "Performance Bonus". The amount of the
annual Performance Bonus (if any) shall be equal to:

         (1)      one percent (1.0%) of the Corporation's Annual Net Income that
                  is between Two and One-Half  Million  Dollars  ($2,500,000.00)
                  and Four  Million,  Nine Hundred  Ninety-Nine  Thousand,  Nine
                  Hundred    Ninety-Nine    Dollars   and   Ninety-Nine    Cents
                  ($4,999,999.99); plus

         (2)      one and two-tenths percent (1.2%) of the Corporation's  Annual
                  Net   Income   that   is   between   Five   Million    Dollars
                  ($5,000,000.00)  and Seven Million,  Four Hundred  Ninety-Nine
                  Thousand,  Nine Hundred  Ninety-Nine  Dollars and  Ninety-Nine
                  Cents ($7,499,999.99); plus

         (3)      six-tenths  of one  percent  (0.6%) of the  Corporation's  Net
                  Income  that is between  Seven and  One-Half  Million  Dollars
                  ($7,500,000.00)  and  Ten  Million  Dollars  ($10,000,000.00),
                  inclusive.

In the event the  Corporation's  Annual Net Income for any given  fiscal year is
less than Two and One-Half Million Dollars  ($2,500,000.00),  the Employee shall
not be  entitled  to a  Performance  Bonus  with  respect to such  fiscal  year.
Notwithstanding  anything contained herein to the contrary, in the event the sum
of the  Employee's  Performance  Bonus with  respect  to a fiscal  year plus the
Employee's  benefit under all  performance/production  incentive programs of the
Corporation in which the Employee is entitled to a bonus  ("Incentive  Benefit")
for such fiscal year exceeds Seventy Thousand Dollars  ($70,000.00),  the amount
of the Employee's  Performance  Bonus for such year shall be reduced so that the
sum of the Performance  Bonus and the Incentive  Benefit equals Seventy Thousand
Dollars ($70,000.00).

For purposes of the  calculation of the  Performance  Bonus,  the  Corporation's
"Annual Net Income" means the consolidated net profit of the Corporation and its
subsidiaries,  for a given fiscal year, as determined by the firm of independent
certified public  accountants  providing  auditing  services to the Corporation,
using  generally  accepted  accounting  principles   consistently  applied,  and
calculated without regard to (a) any bonus paid to the Corporation's Chairman of
the Board and any formula bonuses paid pursuant to employment contracts, and (b)
federal  and  state  income  tax.  The  Corporation  shall pay to  Employee  any
Performance  Bonus due the Employee  hereunder  not later than fifteen (15) days
after the receipt by the Corporation of its annual audited financial statements,
which the  Corporation  expects to receive within ninety (90) days after the end
of each fiscal year of the Corporation.

                  (C) In addition to the Base salary and  Performance  Bonus (if
any), Employee shall be entitled to receive such bonus compensation as the Board
of Directors of the Corporation may authorize from time to time.

         4. Duties of Employee.

                  (A)  Employee  shall  serve as  Vice-President  of  Continuous
Improvement for the Corporation, or in such other positions as may be determined
by the Board of Directors of the  Corporation,  and Employee  shall perform such
duties  (comparable to those normally performed by individuals who serve as such
officers  of  comparable  companies)  on  behalf  of  the  Corporation  and  its
subsidiaries  by such  means,  at such  locations,  and in such manner as may be
specified  from  time to time by the  officers  or  Board  of  Directors  of the
Corporation.

                  (B)  Employee  agrees  to abide by and  conform  to all  rules
established by the Corporation applicable to its employees.

                  (C)  Employee  acknowledges  that he is  being  employed  as a
full-time  employee,  and Employee agrees to devote so much of Employee's entire
time,  attention and energies to the business of the Corporation as is necessary
for the successful  operation of the Corporation and shall endeavor at all times
to  improve  the  business  of the  Corporation.  Employee  shall not accept any
business commitments other than with the Corporation without the advance written
consent of the Corporation's President.

         5.  Expenses.  During the period of  Employee's  employment,  except as
otherwise  specifically  provided in this Agreement,  the  Corporation  will pay
directly,  or reimburse  Employee  for, all items of  reasonable  and  necessary
business  expenses  approved in advance by the  Corporation if such expenses are
incurred by Employee in the  interest of the  business of the  Corporation.  The
Corporation  shall also reimburse  Employee for automobile  expenses incurred by
Employee in the performance of Employee's duties  hereunder.  The amount of such
reimbursement  shall be in accordance with the automobile expense  reimbursement
policy  adopted  (and  as  it  may  be  modified  from  time  to  time)  by  the
Corporation's  Board of  Directors.  All such  expenses paid by Employee will be
reimbursed by the Corporation upon  presentation by Employee,  from time to time
(but not less than quarterly),  of an itemized  account of such  expenditures in
accordance with the Corporation's policy for verifying such expenditures.

         6. Fringe Benefits.

                  (A) Employee  shall be entitled to  participate in any health,
accident and life insurance program and other benefits which have been or may be
established by the Corporation for salaried employees of the Corporation.

                  (B) Employee shall be entitled to an annual  vacation  without
loss of  compensation  for such  period  as may be  determined  by the  Board of
Directors of the Corporation.

                  (C) The  Corporation  shall furnish to the Employee during the
term of his  employment an  automobile  selected by the  Corporation  to aid the
Employee in the performance of his duties.

         7. Covenants of Employee.

                  (A)  During  the  term  of  Employee's   employment  with  the
Corporation  and for all time  thereafter  Employee  covenants  and agrees  that
Employee will not in any manner  directly or  indirectly,  except as required in
Employee's duties to the Corporation, disclose or divulge to any person, entity,
firm or company whatsoever,  or use for Employee's own benefit or the benefit of
any  other  person,  entity,  firm  or  company,  directly  or  indirectly,  any
knowledge, devices, information,  techniques,  customer lists, business plans or
other data  belonging to the  Corporation  or developed by Employee on behalf of
the Corporation  during his employment with the  Corporation,  without regard to
whether all of the foregoing  matters will be deemed  confidential,  material or
important,  the parties hereto  stipulating,  as between them, that the same are
important,  material,  confidential  and the property of the  Corporation,  that
disclosure  of the  same to or use of the same by third  parties  would  greatly
affect the effective and successful  conduct of the business of the  Corporation
and the  goodwill of the  Corporation,  and that any breach of the terms of this
subparagraph (A) shall be a material breach of this Agreement.

                  (B)  During  the  term  of  Employee's   employment  with  the
Corporation  and for a period  of two (2)  years  (the  "Covenant  Term")  after
cessation for whatever reason of such employment (except as hereinafter provided
in  subparagraph  (C) of this paragraph 7),  Employee  covenants and agrees that
Employee will not in any manner directly or indirectly:

                           (i) solicit,  divert, take away or interfere with any
         of the customers (or their respective  affiliates or successors) of the
         Corporation;

                           (ii) engage directly or indirectly, either personally
         or as an employee, partner, associate partner, officer, manager, agent,
         advisor, consultant or otherwise, or by means of any corporate or other
         entity  or  device,  in any  business  which  is  competitive  with the
         business of the  Corporation.  For purposes of this covenant a business
         will be  deemed  competitive  if it is  conducted  in  whole or in part
         within  any  geographic  area  wherein  the  Corporation  is engaged in
         marketing its products, and if it involves the manufacture of component
         parts for the aerospace  industry or any other business which is in any
         manner  competitive,   as  of  the  date  of  cessation  of  Employee's
         employment,  with any business then being  conducted by the Corporation
         or as to which the Corporation has then formulated  definitive plans to
         enter;

                           (iii)  induce any  salesman,  distributor,  supplier,
         manufacturer, representative, agent, jobber or other person transacting
         business with the Corporation to terminate their  relationship with the
         Corporation,   or  to   represent,   distribute  or  sell  products  in
         competition with products of the Corporation; or

                           (iv) induce or cause any employee of the  Corporation
         to leave the employ of the Corporation.

                  (C) The parties  agree that the Covenant  Term provided for in
the preceding subparagraph (B) shall be:

                           (i) reduced to six (6) months in the event all of the
         operating  assets or all of the common stock of the Corporation is sold
         to any entity or individuals  unaffiliated  with the  Corporation,  its
         successors or assigns; or

                           (ii) eliminated if the business currently operated by
         the  Corporation  is terminated and the assets of the  Corporation  are
         liquidated.

                  (D) All the covenants of Employee  contained in this paragraph
7 shall be construed as agreements  independent  of any other  provision of this
Agreement,  and the  existence  of any  claim  or cause of  action  against  the
Corporation,  whether  predicated  on this  Agreement  or  otherwise,  shall not
constitute a defense to the enforcement by the Corporation of these covenants.

                  (E) It is  the  intention  of  the  parties  to  restrict  the
activities of Employee under this  paragraph 7 only to the extent  necessary for
the  protection of legitimate  business  interests of the  Corporation,  and the
parties  specifically  covenant and agree that should any of the  provisions set
forth therein,  under any set of circumstances  not now foreseen by the parties,
be deemed too broad for such purpose, said provisions will nevertheless be valid
and enforceable to the extent necessary for such protection.

         8.  Documents.   Upon  cessation  of  Employee's  employment  with  the
Corporation,  for whatever reason,  all documents,  records  (including  without
limitation,    customer   records),    notebooks,    invoices,   statements   or
correspondence,  including  copies  thereof,  relating  to the  business  of the
Corporation  then in  Employee's  possession,  whether  prepared  by Employee or
others, will be delivered to and left with the Corporation,  and Employee agrees
not to retain copies of the foregoing  documents  without the written consent of
the Corporation.

         9. Remedies. In the event of the breach by Employee of any of the terms
of this Agreement,  notwithstanding  anything to the contrary  contained in this
Agreement,   the  Corporation  may  terminate  the  employment  of  Employee  in
accordance with the provisions of paragraph 2 of this  Agreement.  It is further
agreed  that any  breach or  evasion  of any of the terms of this  Agreement  by
Employee will result in immediate and irreparable  injury to the Corporation and
will authorize recourse to injunction and/or specific  performance as well as to
other legal or equitable  remedies to which the Corporation may be entitled.  In
addition  to any  other  remedies  that  it may  have  in  law  or  equity,  the
Corporation  also may  require  an  accounting  and  repayment  of all  profits,
compensation,  remuneration or other benefits realized,  directly or indirectly,
as a result of such  breaches  by the  Employee  or by a  competitor's  business
controlled,  directly or indirectly, by the Employee. No remedy conferred by any
of the specific  provisions of this Agreement is intended to be exclusive of any
other  remedy and each and every  remedy  given  hereunder  or now or  hereafter
existing at law or in equity by statute or otherwise. The election of any one or
more remedies by the  Corporation  shall not constitute a waiver of the right to
pursue other available remedies. Employee expressly agrees to pay all reasonable
costs and  attorneys'  fees incurred by the  Corporation in order to enforce the
Employee's obligations under this Agreement, regardless of whether litigation is
commenced or prosecuted to a judgment.

         10.  Severability.  All agreements and covenants  contained  herein are
severable, and in the event any of them shall be held to be invalid by any court
of competent jurisdiction,  this Agreement, subject to subparagraph 7(E) hereof,
shall  continue  in full force and effect  and shall be  interpreted  as if such
invalid agreements or covenants were not contained herein.

         11. Waiver or Modification. No waiver or modification of this Agreement
or of any  covenant,  condition  or  limitation  herein shall be valid unless in
writing and duly executed by the party to be charged therewith,  and no evidence
of any waiver or  modification  shall be offered or  received in evidence in any
proceeding,  arbitration or litigation between the parties hereto arising out of
or  affecting  this  Agreement,  or the  rights or  obligations  of the  parties
hereunder,  unless such waiver or modification  is in writing,  duly executed as
aforesaid,  and the parties  further agree that the provisions of this Paragraph
may not be waived  except as herein set forth.  Failure  of the  Corporation  to
exercise or  otherwise  act with  respect to any of its rights  hereunder in the
event of a breach of any of the terms or conditions hereof by Employee shall not
be  construed  as a waiver of such  breach  nor  prevent  the  Corporation  from
thereafter  enforcing  strict  compliance  with  any  and all of the  terms  and
conditions hereof.

         12.  Assignability.  The services to be performed by Employee hereunder
are  personal in nature and,  therefore,  Employee  shall not assign  Employee's
rights  or  delegate  Employee's  obligations  under  this  Agreement,  and  any
attempted or purported  assignment or delegation not herein  permitted  shall be
null and void.

         13.  Successors.  Subject  to the  provisions  of  paragraph  12,  this
Agreement  shall  be  binding  upon  and  shall  inure  to  the  benefit  of the
Corporation and Employee and their respective heirs, executors,  administrators,
legal administrators, successors and assigns.

         14. Notices.  Any notice or other  communication  required or permitted
hereunder  shall  be in  writing  and  shall be  deemed  to have  been  given if
delivered  personally or mailed by certified or registered mail,  return receipt
requested, if to the Corporation, to:

                  Ronald S. Saks, President
                  LMI AEROSPACE, INC.
                  P.O. Box 900
                  St. Charles, MO 63302-900

and, if to Employee, to:

                  Mr. Duane E. Hahn
                  28210 188th Avenue, S.E.
                  Kent, Washington 98042

or to such other  address as may be  specified  by either of the  parties in the
manner provided under this paragraph 14.

         15.  Construction.  This Agreement  shall be deemed for all purposes to
have been made in the State of Missouri  and shall be governed by and  construed
in accordance with the laws of the State of Missouri, notwithstanding either the
place  of  execution  hereof,  nor the  performance  of any  acts in  connection
herewith or hereunder in any other jurisdiction.

         16. Venue.  The parties hereto agree that any suit filed arising out of
or in connection  with this Agreement shall be brought only in the Federal Court
for the Eastern District of Missouri, unless said Court shall lack jurisdiction,
in which case such  action  shall be brought  only in the  Circuit  Court in the
County of St. Louis, Missouri.

         17. Disclosure of Existence of Agreement. To preserve the Corporation's
rights under this  Agreement,  the Corporation may advise any third party of the
existence  of this  Agreement  and its  terms,  and  the  Employee  specifically
releases  and agrees to indemnify  and hold the  Corporation  harmless  from any
liability for doing so.

         18. Opportunity to Review. Employee hereby represents and warrants that
he has had an  opportunity  to review  this  Agreement  and ask the  Corporation
questions  about the Agreement,  and  understands the meaning and effect of each
paragraph of this Agreement.

         The parties have executed this Agreement as of January ___, 2000.

                                         LMI AEROSPACE, INC.
                                         ("Corporation")

                                         By:  /s/ Ronald S. Saks
                                              ----------------------------------
                                              Ronald S. Saks, President

                                         /s/ Duane E. Hahn
                                         ---------------------------------------
                                         Duane E. Hahn
                                         ("Employee")EMPLOYMENT AGREEMENT

         LMI AEROSPACE,  INC., a Missouri corporation (the  "Corporation"),  and
BRADLEY L. NELSON ("Employee") hereby agree as follows:

         1. Employment.  The Corporation  hereby employs Employee,  and Employee
accepts  employment  from  the  Corporation,   upon  the  terms  and  conditions
hereinafter set forth. Any and all employment agreements heretofore entered into
between the  Corporation and Employee are hereby  terminated and cancelled,  and
each of the parties hereto  mutually  releases and discharges the other from any
and all  obligations  and  liabilities  heretofore  or now existing  under or by
virtue of any such employment agreements,  it being the intention of the parties
hereto that this  Agreement,  effective  immediately,  shall supersede and be in
lieu of any and all prior employment agreements between them.

         2. Term of Employment.  The initial term of Employee's employment under
this   Agreement  shall  commence  on  January  1, 2000 and shall  terminate  on
December 31, 2001; provided, however, that this Agreement shall be automatically
extended for additional  terms of one year each unless not later than October 31
of any year  beginning  in 2001,  either party has given  written  notice to the
other party of its or his  intention  not to extend the term of this  Agreement;
and provided,  further,  that the term of employment may be terminated  upon the
earlier occurrence of any of the following events:

                  (a)  Upon  the   termination  of  the  business  or  corporate
         existence of the Corporation;

                  (b) Upon the death of the Employee;

                  (c) At the  Corporation's  option,  if Employee shall suffer a
         permanent disability;  (For the purposes of this Agreement,  "permanent
         disability"  means any physical or mental  impairment  that renders the
         Employee  unable for a period of six (6) months or more to perform  the
         essential  job  functions  of  his  position,   even  with   reasonable
         accommodation,   as   determined   by  a  physician   selected  by  the
         Corporation.  The  Employee  acknowledges  and  agrees  that  he  shall
         voluntarily  submit to a medical or  psychological  examination for the
         purpose of determining  his continued  fitness to perform the essential
         functions  of  his  position  whenever   requested  to  do  so  by  the
         Corporation.  If the  Corporation  elects to terminate  the  employment
         relationship on this basis,  the Corporation  shall notify the Employee
         or his  representative  in writing  and the  termination  shall  become
         effective on the date that such notification is given.) or

                  (d) At the Corporation's  option, upon ten (10) calendar days'
         written  notice to  Employee,  in the event of any breach or default by
         Employee of any of the terms of this  Agreement or of any of Employee's
         duties  or  obligations  hereunder,  or in the  event  the  Corporation
         determines  that Employee is not performing the duties  required of him
         hereunder to the satisfaction of the Corporation.  In lieu of providing
         ten (10) calendar days' advance written notice, the Corporation, at its
         sole option, may terminate the Employee's services  immediately and pay
         him an  amount  that is  equivalent  to ten (10)  calendar  days of his
         salary, less any deductions required by law;

                  (e) At the Corporation's  option,  without any advance notice,
         in the event that the Employee engages in conduct which, in the opinion
         of the Corporation,  (1) constitutes dishonesty of any kind (including,
         but not limited to, any  misrepresentation of facts or falsification of
         records) in  Employee's  relations,  interactions  or dealings with the
         Corporation or its customers; (2) constitutes a felony; (3) potentially
         may or will expose the Corporation to public disrepute or disgrace,  or
         potentially  may  or  will  cause  harm  to  the  customer   relations,
         operations or business  prospects of the  Corporation;  (4) constitutes
         harassment or  discrimination  towards any person  associated  with the
         Corporation,  whether an employee,  agent or customer,  based upon that
         person's race, color, national origin, sex, age, disability,  religion,
         or other  protected  status;  (5)  reflects  disruptive  or  disorderly
         conduct,  including  but not limited to,  acts of  violence,  fighting,
         intimidation or threats of violence against any person  associated with
         the Corporation,  whether an employee, agent or customer, or possessing
         a weapon while on the Corporation's  premises or while acting on behalf
         of the  Corporation;  (6) is  indicative of abusive or illegal drug use
         while  on  the   Corporation's   premises   or  while   acting  on  the
         Corporation's  behalf;  or (7)  constitutes a willful  violation of any
         governmental rules or regulations.

                  (f) At the Employee's option,  after providing the Corporation
         with at least thirty (30) calendar days advance  written  notice of his
         intention to terminate the employment relationship.

Upon  termination  of employment  for any reason,  Employee shall be entitled to
receive only the Base Salary (as that term is hereinafter  defined)  accrued but
unpaid as of the date of  termination  and shall not be entitled  to  additional
compensation except as expressly provided in this Agreement.

         3. Compensation.

                  (A) During the term of this  Agreement the  Corporation  shall
compensate  Employee for  Employee's  services  rendered  hereunder by paying to
Employee an annual  salary (the "Base  Salary") of One Hundred  Thirty  Thousand
Dollars  ($130,000.00),  less any  authorized  or required  payroll  deductions.
Payment of this salary will be made in accordance  with the payroll  policies of
the Corporation in effect from time to time.

                  (B)  With  respect  to  each  complete   fiscal  year  of  the
Corporation  during which (i) the  Employee is employed  under the terms of this
Agreement  as of the last day of such fiscal  year,  and (ii) the  Corporation's
"Annual Net Income" (as that term is  hereinafter  defined) is more than Two and
One-Half Million Dollars ($2,500,000.00), the Corporation shall pay to Employee,
in addition to the Base Salary, an annual "Performance Bonus". The amount of the
annual Performance Bonus (if any) shall be equal to:

         (1)      one percent (1.0%) of the Corporation's Annual Net Income that
                  is between Two and One-Half  Million  Dollars  ($2,500,000.00)
                  and Four  Million,  Nine Hundred  Ninety-Nine  Thousand,  Nine
                  Hundred    Ninety-Nine    Dollars   and   Ninety-Nine    Cents
                  ($4,999,999.99); plus

         (2)      one and two-tenths percent (1.2%) of the Corporation's  Annual
                  Net   Income   that   is   between   Five   Million    Dollars
                  ($5,000,000.00)  and Seven Million,  Four Hundred  Ninety-Nine
                  Thousand,  Nine Hundred  Ninety-Nine  Dollars and  Ninety-Nine
                  Cents ($7,499,999.99); plus

         (3)      six-tenths  of one  percent  (0.6%) of the  Corporation's  Net
                  Income  that is between  Seven and  One-Half  Million  Dollars
                  ($7,500,000.00)  and  Ten  Million  Dollars  ($10,000,000.00),
                  inclusive.

In the event the  Corporation's  Annual Net Income for any given  fiscal year is
less than Two and One-Half Million Dollars  ($2,500,000.00),  the Employee shall
not be  entitled  to a  Performance  Bonus  with  respect to such  fiscal  year.
Notwithstanding  anything contained herein to the contrary, in the event the sum
of the  Employee's  Performance  Bonus with  respect  to a fiscal  year plus the
Employee's  benefit under all  performance/production  incentive programs of the
Corporation in which the Employee is entitled to a bonus  ("Incentive  Benefit")
for such fiscal year exceeds Seventy Thousand Dollars  ($70,000.00),  the amount
of the Employee's  Performance  Bonus for such year shall be reduced so that the
sum of the Performance  Bonus and the Incentive  Benefit equals Seventy Thousand
Dollars ($70,000.00).

For purposes of the  calculation of the  Performance  Bonus,  the  Corporation's
"Annual Net Income" means the consolidated net profit of the Corporation and its
subsidiaries,  for a given fiscal year, as determined by the firm of independent
certified public  accountants  providing  auditing  services to the Corporation,
using  generally  accepted  accounting  principles   consistently  applied,  and
calculated without regard to (a) any bonus paid to the Corporation's Chairman of
the Board and any formula bonuses paid pursuant to employment contracts, and (b)
federal  and  state  income  tax.  The  Corporation  shall pay to  Employee  any
Performance  Bonus due the Employee  hereunder  not later than fifteen (15) days
after the receipt by the Corporation of its annual audited financial statements,
which the  Corporation  expects to receive within ninety (90) days after the end
of each fiscal year of the Corporation.

                  (C) In addition to the Base salary and  Performance  Bonus (if
any), Employee shall be entitled to receive such bonus compensation as the Board
of Directors of the Corporation may authorize from time to time.

         4. Duties of Employee.

                  (A)   Employee   shall   serve  as  General   Manager  of  the
Corporation's plant located in Auburn,  Washington or in such other positions as
may be  determined  by the Board of Directors of the  Corporation,  and Employee
shall perform such duties on behalf of the Corporation  and its  subsidiaries by
such means, at such locations,  and in such manner as may be specified from time
to time by the officers or Board of Directors of the Corporation.

                  (B)  Employee  agrees  to abide by and  conform  to all  rules
established by the Corporation applicable to its employees.

                  (C)  Employee  acknowledges  that he is  being  employed  as a
full-time  employee,  and Employee agrees to devote so much of Employee's entire
time,  attention and energies to the business of the Corporation as is necessary
for the successful  operation of the Corporation and shall endeavor at all times
to  improve  the  business  of the  Corporation.  Employee  shall not accept any
business commitments other than with the Corporation without the advance written
consent of the Corporation's President.

         5.  Expenses.  During the period of  Employee's  employment,  except as
otherwise  specifically  provided in this Agreement,  the  Corporation  will pay
directly,  or reimburse  Employee  for, all items of  reasonable  and  necessary
business  expenses  approved in advance by the  Corporation if such expenses are
incurred by Employee in the  interest of the  business of the  Corporation.  The
Corporation  shall also reimburse  Employee for automobile  expenses incurred by
Employee in the performance of Employee's duties  hereunder.  The amount of such
reimbursement  shall be in accordance with the automobile expense  reimbursement
policy  adopted  (and  as  it  may  be  modified  from  time  to  time)  by  the
Corporation's  Board of  Directors.  All such  expenses paid by Employee will be
reimbursed by the Corporation upon  presentation by Employee,  from time to time
(but not less than quarterly),  of an itemized  account of such  expenditures in
accordance with the Corporation's policy for verifying such expenditures.

         6. Fringe Benefits.

                  (A) Employee  shall be entitled to  participate in any health,
accident and life insurance program and other benefits which have been or may be
established by the Corporation for salaried employees of the Corporation.

                  (B) Employee shall be entitled to an annual  vacation  without
loss of  compensation  for such  period  as may be  determined  by the  Board of
Directors of the Corporation.

                  (C) The  Corporation  shall furnish to the Employee during the
term of his  employment an  automobile  selected by the  Corporation  to aid the
Employee in the performance of his duties.

         7. Covenants of Employee.

                  (A)  During  the  term  of  Employee's   employment  with  the
Corporation  and for all time  thereafter  Employee  covenants  and agrees  that
Employee will not in any manner  directly or  indirectly,  except as required in
Employee's duties to the Corporation, disclose or divulge to any person, entity,
firm or company whatsoever,  or use for Employee's own benefit or the benefit of
any  other  person,  entity,  firm  or  company,  directly  or  indirectly,  any
knowledge, devices, information,  techniques,  customer lists, business plans or
other data  belonging to the  Corporation  or developed by Employee on behalf of
the Corporation  during his employment with the  Corporation,  without regard to
whether all of the foregoing  matters will be deemed  confidential,  material or
important,  the parties hereto  stipulating,  as between them, that the same are
important,  material,  confidential  and the property of the  Corporation,  that
disclosure  of the  same to or use of the same by third  parties  would  greatly
affect the effective and successful  conduct of the business of the  Corporation
and the  goodwill of the  Corporation,  and that any breach of the terms of this
subparagraph (A) shall be a material breach of this Agreement.

                  (B)  During  the  term  of  Employee's   employment  with  the
Corporation  and for a period  of two (2)  years  (the  "Covenant  Term")  after
cessation for whatever reason of such employment (except as hereinafter provided
in  subparagraph  (C) of this paragraph 7),  Employee  covenants and agrees that
Employee will not in any manner directly or indirectly:

                           (i) solicit,  divert, take away or interfere with any
         of the customers (or their respective  affiliates or successors) of the
         Corporation;

                           (ii) engage directly or indirectly, either personally
         or as an employee, partner, associate partner, officer, manager, agent,
         advisor, consultant or otherwise, or by means of any corporate or other
         entity  or  device,  in any  business  which  is  competitive  with the
         business of the  Corporation.  For purposes of this covenant a business
         will be  deemed  competitive  if it is  conducted  in  whole or in part
         within  any  geographic  area  wherein  the  Corporation  is engaged in
         marketing its products, and if it involves the manufacture of component
         parts for the aerospace  industry or any other business which is in any
         manner  competitive,   as  of  the  date  of  cessation  of  Employee's
         employment,  with any business then being  conducted by the Corporation
         or as to which the Corporation has then formulated  definitive plans to
         enter;

                           (iii)  induce any  salesman,  distributor,  supplier,
         manufacturer, representative, agent, jobber or other person transacting
         business with the Corporation to terminate their  relationship with the
         Corporation,   or  to   represent,   distribute  or  sell  products  in
         competition with products of the Corporation; or

                           (iv) induce or cause any employee of the  Corporation
         to leave the employ of the Corporation.

                  (C) The parties  agree that the Covenant  Term provided for in
the preceding subparagraph (B) shall be:

                           (i) reduced to six (6) months in the event all of the
         operating  assets or all of the common stock of the Corporation is sold
         to any entity or individuals  unaffiliated  with the  Corporation,  its
         successors or assigns; or

                           (ii) eliminated if the business currently operated by
         the  Corporation  is terminated and the assets of the  Corporation  are
         liquidated.

                  (D) All the covenants of Employee  contained in this paragraph
7 shall be construed as agreements  independent  of any other  provision of this
Agreement,  and the  existence  of any  claim  or cause of  action  against  the
Corporation,  whether  predicated  on this  Agreement  or  otherwise,  shall not
constitute a defense to the enforcement by the Corporation of these covenants.

                  (E) It is  the  intention  of  the  parties  to  restrict  the
activities of Employee under this  paragraph 7 only to the extent  necessary for
the  protection of legitimate  business  interests of the  Corporation,  and the
parties  specifically  covenant and agree that should any of the  provisions set
forth therein,  under any set of circumstances  not now foreseen by the parties,
be deemed too broad for such purpose, said provisions will nevertheless be valid
and enforceable to the extent necessary for such protection.

         8.  Documents.   Upon  cessation  of  Employee's  employment  with  the
Corporation,  for whatever reason,  all documents,  records  (including  without
limitation,    customer   records),    notebooks,    invoices,   statements   or
correspondence,  including  copies  thereof,  relating  to the  business  of the
Corporation  then in  Employee's  possession,  whether  prepared  by Employee or
others, will be delivered to and left with the Corporation,  and Employee agrees
not to retain copies of the foregoing  documents  without the written consent of
the Corporation.

         9. Remedies. In the event of the breach by Employee of any of the terms
of this Agreement,  notwithstanding  anything to the contrary  contained in this
Agreement,   the  Corporation  may  terminate  the  employment  of  Employee  in
accordance with the provisions of paragraph 2 of this  Agreement.  It is further
agreed  that any  breach or  evasion  of any of the terms of this  Agreement  by
Employee will result in immediate and irreparable  injury to the Corporation and
will authorize recourse to injunction and/or specific  performance as well as to
other legal or equitable  remedies to which the Corporation may be entitled.  In
addition  to any  other  remedies  that  it may  have  in  law  or  equity,  the
Corporation  also may  require  an  accounting  and  repayment  of all  profits,
compensation,  remuneration or other benefits realized,  directly or indirectly,
as a result of such  breaches  by the  Employee  or by a  competitor's  business
controlled,  directly or indirectly, by the Employee. No remedy conferred by any
of the specific  provisions of this Agreement is intended to be exclusive of any
other  remedy and each and every  remedy  given  hereunder  or now or  hereafter
existing at law or in equity by statute or otherwise. The election of any one or
more remedies by the  Corporation  shall not constitute a waiver of the right to
pursue other available remedies. Employee expressly agrees to pay all reasonable
costs and  attorneys'  fees incurred by the  Corporation in order to enforce the
Employee's obligations under this Agreement, regardless of whether litigation is
commenced or prosecuted to a judgment.

         10.  Severability.  All agreements and covenants  contained  herein are
severable, and in the event any of them shall be held to be invalid by any court
of competent jurisdiction,  this Agreement, subject to subparagraph 7(E) hereof,
shall  continue  in full force and effect  and shall be  interpreted  as if such
invalid agreements or covenants were not contained herein.

         11. Waiver or Modification. No waiver or modification of this Agreement
or of any  covenant,  condition  or  limitation  herein shall be valid unless in
writing and duly executed by the party to be charged therewith,  and no evidence
of any waiver or  modification  shall be offered or  received in evidence in any
proceeding,  arbitration or litigation between the parties hereto arising out of
or  affecting  this  Agreement,  or the  rights or  obligations  of the  parties
hereunder,  unless such waiver or modification  is in writing,  duly executed as
aforesaid,  and the parties  further agree that the provisions of this Paragraph
may not be waived  except as herein set forth.  Failure  of the  Corporation  to
exercise or  otherwise  act with  respect to any of its rights  hereunder in the
event of a breach of any of the terms or conditions hereof by Employee shall not
be  construed  as a waiver of such  breach  nor  prevent  the  Corporation  from
thereafter  enforcing  strict  compliance  with  any  and all of the  terms  and
conditions hereof.

         12.  Assignability.  The services to be performed by Employee hereunder
are  personal in nature and,  therefore,  Employee  shall not assign  Employee's
rights  or  delegate  Employee's  obligations  under  this  Agreement,  and  any
attempted or purported  assignment or delegation not herein  permitted  shall be
null and void.

         13.  Successors.  Subject  to the  provisions  of  paragraph  12,  this
Agreement  shall  be  binding  upon  and  shall  inure  to  the  benefit  of the
Corporation and Employee and their respective heirs, executors,  administrators,
legal administrators, successors and assigns.

         14. Notices.  Any notice or other  communication  required or permitted
hereunder  shall  be in  writing  and  shall be  deemed  to have  been  given if
delivered  personally or mailed by certified or registered mail,  return receipt
requested, if to the Corporation, to:

                  Ronald S. Saks, President
                  LMI AEROSPACE, INC.
                  P.O. Box  900
                  St. Charles, MO 63302-0900

and, if to Employee, to:

                  Mr. Bradley Nelson
                  12358 105th Place NE
                  Kirkland, Washington  98034

or to such other  address as may be  specified  by either of the  parties in the
manner provided under this paragraph 14.

         15.  Construction.  This Agreement  shall be deemed for all purposes to
have been made in the State of Missouri  and shall be governed by and  construed
in accordance with the laws of the State of Missouri, notwithstanding either the
place  of  execution  hereof,  nor the  performance  of any  acts in  connection
herewith or hereunder in any other jurisdiction.

         16. Venue.  The parties hereto agree that any suit filed arising out of
or in connection  with this Agreement shall be brought only in the Federal Court
for the Eastern District of Missouri, unless said Court shall lack jurisdiction,
in which case such  action  shall be brought  only in the  Circuit  Court in the
County of St. Louis, Missouri.

         17. Disclosure of Existence of Agreement. To preserve the Corporation's
rights under this  Agreement,  the Corporation may advise any third party of the
existence  of this  Agreement  and its  terms,  and  the  Employee  specifically
releases  and agrees to indemnify  and hold the  Corporation  harmless  from any
liability for doing so.

         18. Opportunity to Review. Employee hereby represents and warrants that
he has had an  opportunity  to review  this  Agreement  and ask the  Corporation
questions  about the Agreement,  and  understands the meaning and effect of each
paragraph of this Agreement.

         The parties have executed this Agreement as of January ___, 2000.

                                         LMI AEROSPACE, INC.
                                         ("Corporation")

                                         By:  /s/ Ronald S. Saks
                                              ----------------------------------
                                                  Ronald S. Saks, President

                                         /s/ Bradley L. Nelson
                                         ---------------------------------------
                                         Bradley  L. Nelson
                                         ("Employee")

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