Document:

COMPX INTERNATIONAL INC.

                         ------------------------------

                             AMENDMENT NO. 1 TO THE
                                CREDIT AGREEMENT

                          dated as of December 15, 1999

                         ------------------------------

                             BANKERS TRUST COMPANY,
                                    as Agent

                                       and

                          VARIOUS LENDING INSTITUTIONS

<PAGE>

                               AMENDMENT NO. 1 TO
                                CREDIT AGREEMENT

                  This Amendment Number 1 to Credit Agreement (this "Agreement")
is entered into as of December 15,  1999,  by the and among COMPX  INTERNATIONAL
INC., a Delaware  corporation  (the  "Company"),  each of the several  financial
institutions signatory hereto (collectively, the "Majority Lenders") and Bankers
Trust Company,  a New York banking  corporation,  individually and as agent (the
"Agent") for the benefit of the Lenders under the Credit  Agreement  hereinafter
referred to.

                                    RECITALS

         A. The Company,  the Agent and the financial  institutions from time to
time party  thereto are parties to that  certain  Credit  Agreement  dated as of
February 26, 1998 (the "Credit  Agreement").  Unless otherwise specified herein,
capitalized  terms used in this  Agreement  shall have the meanings  ascribed to
them by the Credit Agreement, as amended hereby.

         B. The  Borrowers,  the Agent and the  Majority  Lenders have agreed to
amend the Credit  Agreement on terms and conditions  herein set forth subject to
the terms and conditions hereof.

                  NOW,  THEREFORE,  in  consideration  of the  mutual  execution
hereof and other good and valuable  consideration,  the parties  hereto agree as
follows:

         1. Amendments to Credit Agreement.  Section 8.5 of the Credit Agreement
is hereby amended by deleting the clause "after
the second  anniversary  hereof"  where such words first  appear after the words
"provided, however, that" in such section.

         2.  Representations  and  Warranties  of  the  Borrowers.  The  Company
represents and warrants that:

         (a)      The execution, delivery and performance by the Company of this
                  Agreement have been duly authorized by all necessary corporate
                  action and that this  Agreement is a legal,  valid and binding
                  obligation of the Company  enforceable  against the Company in
                  accordance with its terms,  except as the enforcement  thereof
                  may be  subject to the  effect of any  applicable  bankruptcy,
                  insolvency,   reorganization,   moratorium   or  similar   law
                  affecting creditors' rights generally;

         (b)      Each of the  representations  and warranties  contained in the
                  Credit Agreement is true and correct in all material  respects
                  on and as of the date  hereof  as if made on the date  hereof,
                  except to the extent that any such  representation or warranty
                  relates to an earlier date, in which case such  representation
                  or warranty shall be true and correct in all material respects
                  as of such earlier date; and

         (c)      After giving effect to this Agreement, no Default or Unmatured
                  Default has occurred and is continuing.

         3.  Conditions to  Effectiveness  of Agreement.  This  Agreement  shall
become  effective  on the date  (the  "Effective  Date")  each of the  following
conditions precedent is satisfied:

         (a)      Execution  and  Delivery.  The  Company,  the  Agent  and  the
                  Majority  Lenders  shall  have  executed  and  delivered  this
                  Agreement.

         (b)      No  Defaults.  After  giving  effect  to  this  Agreement,  no
                  Unmatured  Event of  Default  or Event of  Default  under  the
                  Credit Agreement shall have occurred and be continuing.

         (c)      Representations  and  Warranties.  After giving  effect to the
                  amendments contemplated by this Agreement, the representations
                  and warranties of the Company contained in this Agreement, the
                  Credit  Agreement and the other Loan  Documents  shall be true
                  and correct in all respects as of the Effective Date, with the
                  same effect as though made on such date,  except to the extent
                  that any such representation or warranty relates to an earlier
                  date, in which case such  representation  or warranty shall be
                  true and correct in all  material  respects as of such earlier
                  date.

         (d)      General.  The Agent shall have received such other  documents,
                  Certificates and opinions, as it may reasonably require.

         4.    Reference   to   and   Effect   Upon   the   Credit    Agreement.

         (a)      Upon  the  Effective   Date,  each  reference  in  the  Credit
                  Agreement   to  "this   Agreement,"   "hereunder,"   "hereof,"
                  "herein,"  or words of like import and each  reference  to the
                  Credit  Agreement  in each Loan  Document  shall mean and be a
                  reference  to the Credit  Agreement  as amended  and  restated
                  hereby and the Credit Agreement is amended as set forth herein
                  and is hereby restated in its entirety to read as set forth in
                  the Credit Agreement with the amendments specified herein.

         (b)      Except  as  specifically  amended  above,  all of  the  terms,
                  conditions and covenants of the Credit Agreement and the other
                  Loan  Documents  shall remain  unaltered and in full force and
                  effect and are hereby ratified and confirmed in all respects.

         (c)      The execution,  delivery and  effectiveness  of this Agreement
                  shall not operate as a waiver of any right, power or remedy of
                  the Agent or any  Lender  under the  Credit  Agreement  or any
                  other Loan Document,  nor constitute a waiver of any provision
                  of the  Credit  Agreement  or any  Loan  Document,  except  as
                  specifically set forth herein.

         5. Costs and Expenses.  The Company hereby affirms its obligation under
Section 11.04 of the Credit  Agreement to reimburse the Agent for all reasonable
costs, internal charges and out-of-pocket expenses paid or incurred by the Agent
in connection with the preparation,  negotiation, execution and delivery of this
Agreement,  including but not limited to the attorneys' fees and time charges of
attorneys for the Agent with respect thereto.

         6.  Counterparts.  This  Agreement  may be  executed  in any  number of
counterparts, each of which when so executed shall be deemed an original but all
such counterparts shall constitute one and the same instrument.

                            (signature pages follow)

<PAGE>

                  IN WITNESS  WHEREOF,  the  parties  hereto  have  caused  this
Agreement  to be duly  executed  by their  respective  officers  thereunto  duly
authorized as of the date above first written.

                                   COMP X INTERNATIONAL INC., a Delaware
                                   corporation

                                   By:

                                   Name:

                                   Title:

<PAGE>

                                   BANKERS TRUST COMPANY, individually as a
                                   Lender and as Agent

                                   By:

                                   Name:

                                   Title:

<PAGE>

                                  BANK OF AMERICA, N.A., (Formerly NationsBank,
                                  N.A.), as a Lender

                                  By:

                                  Name:

                                  Title:

<PAGE>

                                  BANK OF TOYKO, as Lender

                                  By:

                                  Name:

                                  Title:

<PAGE>

                                  FIRST UNION NATIONAL BANK, as a Lender

                                  By:

                                  Name:

                                  Title:

<PAGE>

                                  WACHOVIA BANK, N.A., as a Lender

                                  By:

                                  Name:

                                  Title:

<PAGE>

                            REAFFIRMATION OF GUARANTY

         Each of the undersigned acknowledges receipt of a copy of the Amendment
No. 1 to the Credit Agreement (the  "Amendment")  dated as of December 17, 1999,
consents to such  Amendment  and hereby  reaffirms  its  obligations  under that
certain Subsidiary Guaranty Agreement dated February 26, 1998.

Dated as of December 17, 1999.INTERCORPORATE SERVICES AGREEMENT

         This INTERCORPORATE SERVICES AGREEMENT (the "Agreement"),  effective as
of January 1, 1999, amends and supersedes that certain  Intercorporate  Services
Agreement  effective  as of  January 1, 1998  between  VALHI,  INC.,  a Delaware
corporation  ("Valhi"),  and COMPX  INTERNATIONAL  INC., a Delaware  corporation
("Recipient").

                                    Recitals

         A.  Employees  and  agents of Valhi  and  affiliates  of Valhi  perform
management,  financial and administrative functions for Recipient without direct
compensation from Recipient.

         B. Recipient does not separately  maintain the full internal capability
to perform all necessary management, financial and administrative functions that
Recipient requires.

         C.  The cost of  maintaining  the  additional  personnel  by  Recipient
necessary to perform the functions  provided for by this Agreement  would exceed
the fee set  forth in  Section  3 of this  Agreement  and that the terms of this
Agreement are no less  favorable to Recipient  than could  otherwise be obtained
from a third party for comparable services.

         D. Recipient  desires to continue  receiving the management,  financial
and administrative  services presently provided by Valhi and affiliates of Valhi
and Valhi is willing to continue  to provide  such  services  under the terms of
this Agreement.

                                    Agreement

         For and in consideration of the mutual  premises,  representations  and
covenants herein contained, the parties hereto mutually agree as follows:

         Section 1. Services to be Provided.  Valhi agrees to make  available to
Recipient the following services (the "Services") to be rendered by the internal
staff of Valhi and affiliates of Valhi:

         (a)      Consultation   and   assistance   in   the   development   and
                  implementation of Recipient's  corporate business  strategies,
                  plans and objectives;

         (b)      Consultation  and  assistance  in  management  and  conduct of
                  corporate affairs and corporate governance consistent with the
                  charter and bylaws of Recipient;

         (c)      Consultation   and  assistance  in  maintenance  of  financial
                  records  and  controls,  including  preparation  and review of
                  periodic  financial  statements  and  reports to be filed with
                  public  and  regulatory  entities  and  those  required  to be
                  prepared for financial  institutions or pursuant to indentures
                  and credit agreements;

         (d)      Consultation   and  assistance  in  cash   management  and  in
                  arranging  financing necessary to implement the business plans
                  of Recipient;

         (e)      Consultation    and   assistance   in   tax   management   and
                  administration, including, without limitation, preparation and
                  filing  of  tax  returns,   tax  reporting,   examinations  by
                  government authorities and tax planning;

         (f)      Consultation  and assistance in performing  internal audit and
                  control functions;

         (g)      Consultation  and assistance with respect to employee  benefit
                  plans and incentive compensation arrangements; and

         (h)      Such other services as may be requested by Recipient or deemed
                  necessary and proper from time to time.

         Section 2.  Miscellaneous  Services.  It is the  intent of the  parties
hereto that Valhi provide only the Services requested by Recipient in connection
with routine management,  financial and administrative  functions related to the
ongoing  operations  of  Recipient  and not with  respect to  special  projects,
including  corporate  investments,  acquisitions and  divestitures.  The parties
hereto  contemplate that the Services rendered in connection with the conduct of
Recipient's  business  will  be on a scale  compared  to  that  existing  on the
effective  date of this  Agreement,  adjusted for internal  corporate  growth or
contraction, but not for major corporate acquisitions or divestitures,  and that
adjustments  may be required to the terms of this Agreement in the event of such
major corporate acquisitions,  divestitures or special projects.  Recipient will
continue to bear all other costs required for outside  services  including,  but
not  limited  to,  the  outside  services  of  attorneys,   auditors,  trustees,
consultants, transfer agents and registrars, and it is expressly understood that
Valhi assumes no liability for any expenses or services  other than those stated
in Section 1. In addition to the fee paid to Valhi by Recipient for the Services
provided  pursuant to this Agreement,  Recipient will pay to Valhi the amount of
out-of-pocket costs incurred by Valhi in rendering such Services.

         Section 3. Fee for Services.  Recipient  agrees to pay to Valhi $81,000
quarterly, commencing as of January 1, 1999, pursuant to this Agreement.

         Section  4.  Original  Term.  Subject  to the  provisions  of Section 5
hereof,  the original  term of this  Agreement  shall be from January 1, 1999 to
December 31, 1999.

         Section  5.   Extensions.   This  Agreement  shall  be  extended  on  a
quarter-to-quarter  basis  after the  expiration  of its  original  term  unless
written  notification is given by Valhi or Recipient thirty (30) days in advance
of the first day of each  successive  quarter  or unless it is  superseded  by a
subsequent written agreement of the parties hereto.

         Section  6.   Limitation  of  Liability.   In  providing  its  Services
hereunder,  Valhi shall have a duty to act, and to cause its agents to act, in a
reasonably prudent manner, but neither Valhi nor any officer, director, employee
or agent of Valhi or its  affiliates  shall be liable to Recipient for any error
of  judgment  or  mistake  of law or for  any  loss  incurred  by  Recipient  in
connection  with the  matter  to which  this  Agreement  relates,  except a loss
resulting from willful misfeasance, bad faith or gross negligence on the part of
Valhi.

         Section  7.  Indemnification  of Valhi by  Recipient.  Recipient  shall
indemnify and hold harmless Valhi, its affiliates and their respective officers,
directors  and  employees  from and  against  any and all  losses,  liabilities,
claims,  damages,  costs  and  expenses  (including  attorneys'  fees and  other
expenses of  litigation)  to which  Valhi or any such person may become  subject
arising out of the Services provided by Valhi to Recipient  hereunder,  provided
that such indemnity  shall not protect any person against any liability to which
such person  would  otherwise be subject by reason of willful  misfeasance,  bad
faith or gross negligence on the part of such person.

         Section 8. Further Assurances.  Each of the parties will make, execute,
acknowledge and deliver such other instruments and documents,  and take all such
other actions,  as the other party may reasonably  request and as may reasonably
be required in order to effectuate  the purposes of this  Agreement and to carry
out the terms hereof.

         Section 9. Notices.  All  communications  hereunder shall be in writing
and shall be addressed, if intended for Valhi, to Three Lincoln Centre, 5430 LBJ
Freeway, Suite 1700, Dallas, Texas 75240,  Attention:  President,  or such other
address as it shall have furnished to Recipient in writing,  and if intended for
Recipient,  to Two  Greenspoint  Plaza,  16825  Northchase  Drive,  Suite  1200,
Houston, Texas 77060, Attention: Chairman of the Board, or such other address as
it shall have furnished to Valhi in writing.

         Section 10. Amendment and Modification.  Neither this Agreement nor any
term hereof may be  changed,  waived,  discharged  or  terminated  other than by
agreement in writing signed by the parties hereto.

         Section 11.  Successors and Assigns.  This  Agreement  shall be binding
upon and inure to the  benefit  of Valhi  and  Recipient  and  their  respective
successors  and assigns,  except that neither  party may assign its rights under
this Agreement without the prior written consent of the other party.

         Section 12.  Governing  Law. This  Agreement  shall be governed by, and
construed and interpreted in accordance with, the laws of the state of Texas.

<PAGE>

         IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
duly executed and delivered as of the date first above written.

                                       VALHI, INC.

                                       By:
                                             Steven L. Watson
                                             President

                                       COMPX INTERNATIONAL INC.

                                       By:
                                            Joseph S. Compofelice
                                            Chairman   of  the  Board,
                                            President   and  Chief
                                            Executive Officer

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