Document:

<PAGE>

                                                                    Exhibit 10.1

                               APACHE CORPORATION
                    NON-EMPLOYEE DIRECTORS' COMPENSATION PLAN

           As Amended and Restated May 1, 2003; Effective July 1, 2003

                                     PURPOSE

The purpose of the Non-Employee Directors' Compensation Plan (the "PLAN") is to
set forth certain of the compensation arrangements for members of the board of
directors (the "BOARD") of Apache Corporation ("APACHE") who are not also
employees of Apache ("NON-EMPLOYEE DIRECTORS"). The Plan supersedes the
Directors' Deferred Compensation Plan; however, all elections previously made
thereunder, until terminated or modified, shall remain in effect in respect of
the Plan. The Plan does not supersede or amend in any way any other arrangements
relating to Non-Employee Directors including specifically, without limitation,
the Equity Compensation Plan for Non-Employee Directors, the Outside Directors'
Retirement Plan, indemnification provisions of Apache's charter or bylaws, or
policies with respect to reimbursement of expenses.

                                 PLAN PROVISIONS

1. BOARD RETAINER. Each Non-Employee Director shall be paid, as soon as
practicable following accrual, the Board retainer fees set forth below:

         (a) $10,000.00 shall be paid to each Non-Employee Director at the end
         of each calendar quarter during which such Non-Employee Director served
         as a member of Apache's Board ("CASH RETAINER FEE");

         (b) $2,500.00 in value of Apache common stock, par value $1.25 per
         share ("STOCK"), shall be paid from Apache's treasury shares to each
         Non-Employee Director at the end of each calendar quarter during which
         such Non-Employee Director served as a member of Apache's Board ("STOCK
         RETAINER FEE"). The number of shares of Stock shall be determined by
         dividing $2,500.00 by the per share closing price of the Stock as
         reported on The New York Stock Exchange, Inc. Composite Transactions
         Reporting System (the "Composite Tape") as of the trading day prior to
         the last trading day of the relevant calendar quarter, with any
         fractional shares to be paid to the director in cash; and

         (c) In the event that a Non-Employee Director serves as a member of
         Apache's Board for less than an entire calendar quarter, the fees
         payable pursuant to Sections 1 (a) and (b) hereof shall be prorated on
         the basis of the number of weeks served during such calendar quarter.

                                      -1-
<PAGE>

2. COMMITTEE RETAINERS. Each Non-Employee Director serving on any committee of
Apache's Board shall be paid, as soon as practicable, the committee retainer fee
("COMMITTEE RETAINER FEE") set forth below:

         (a) $500.00 shall be paid to each Non-Employee Director at the end of
         each calendar quarter in respect of each committee on which such
         Non-Employee Director served during such quarter;

         (b) $1,000.00 shall be paid to each Non-Employee Director at the end of
         each calendar quarter in respect of each committee on which such
         Non-Employee Director served as chairperson during such quarter; and

         (c) In the event that a Non-Employee Director serves on any committee
         of Apache's Board and/or as chairperson of any committee of Apache's
         board for less than an entire calendar quarter, the fees payable
         pursuant to Sections 2 (a) and (b) hereof shall be prorated on the
         basis of the number of weeks served during such calendar quarter.

3. ATTENDANCE FEES. Each Non-Employee Director shall receive the attendance fee
("ATTENDANCE FEE") set forth below, such fee to be paid at each such meeting or
as soon thereafter a practicable:

         (a) $1,500.00 shall be paid for each meeting of the Board or of any
         committee thereof attended in person; and

         (b) $1,000.00 shall be paid for each meeting of the Board or of any
         committee thereof attended by teleconference, video conference, or
         other similar means.

4. OPTIONAL DEFERRAL OF FEES.

         (a) DEFERRABLE FEES. A Non-Employee Director may defer all or any
         portion of any unpaid Cash Retainer Fee, Stock Retainer Fee, Committee
         Retainer Fee, and Attendance Fee, all of which are paid to Non-Employee
         Directors with respect to their services performed as a director on the
         Board ("DEFERRABLE FEES"). No other payments to Non-Employee Directors
         may be deferred including, without limitation, any expense
         reimbursement, any award under Apache's Equity Compensation Plan for
         Non-Employee Directors, or benefits payable under Outside Directors'
         Retirement Plan.

         (b) FORM OF DEFERRAL. Any Cash Retainer Fees and Committee Retainer
         Fees may be deferred in the form of cash or in the form of Stock. Any
         Stock Retainer Fees may be deferred only in the form of Stock. Any
         Attendance Fees may be deferred only in the form of cash, except as set
         forth in Section 4(e) hereof. Any Cash Retainer Fees, Stock Retainer
         Fees and/or Committee Retainer Fees which are deferred in the form of
         Stock by a Non-Employee Director shall not be issued until such
         deferral is terminated; however, Apache shall at all times have
         reserved from its treasury shares for issuance pursuant hereto to
         deferring Non-Employee Directors a number of shares at least equal to
         the number of shares of Stock issuable pursuant to the terms of the
         Plan.

                                      -2-
<PAGE>

         (c) NUMBER OF SHARES. For any Cash Retainer Fees, Stock Retainer Fees,
         and/or Committee Retainer Fees deferred in the form of Stock, the
         number of shares of Stock shall be determined by dividing the amount of
         such fees by the per share closing price of the Stock as reported on
         the Composite Tape as of the trading day prior to the last trading day
         of the relevant calendar quarter, with any fractional shares to be
         deferred in the form of cash.

         (d) ELECTION TO DEFER. A Non-Employee Director's election to defer
         ("ELECTION") all or any portion of Deferrable Fees shall be effected by
         execution of a Directors' Deferred Compensation Agreement between the
         participating director and Apache ("AGREEMENT"), a copy of the form of
         which is attached hereto as Exhibit A. An Agreement must be executed by
         the deferring Non-Employee Director and provided to Apache's Corporate
         Secretary on or before December 31 of the year prior to the year for
         which deferral is elected. Once executed, an Agreement shall be
         irrevocable with respect to the year made, the form of deferral, and
         the Deferrable Fees designated for deferral (the "DEFERRED
         COMPENSATION"), and shall remain in effect with respect to all
         subsequent years until the Agreement is terminated or amended. All
         elections to defer Deferrable Fees previously made in respect of the
         Directors' Deferred Compensation Plan shall constitute valid Elections
         in respect of the Plan. Upon full or partial termination of deferral by
         a Non-Employee Director, the cash and/or Stock shall be paid and/or
         issued to such Non-Employee Director pursuant to the terms of such
         Non-Employee Director's Agreement.

         (e) ELECTION TO SWITCH FORM OF DEFERRED COMPENSATION.

                  (i) With respect to the year-end balance of Deferred
         Compensation in the form of cash ("YEAR-END CASH BALANCE") in his or
         her Memorandum Account (as defined below), a Non-Employee Director may
         make an annual election to switch all or any portion of his or her
         Year-End Cash Balance to the form of Stock, effective as of the first
         business day of the following year. Such election shall be made by
         executing a new Agreement and providing it to Apache's Corporate
         Secretary on or before December 31 of the year prior to the year for
         which the election is to be effective. Once executed, an Agreement
         shall be irrevocable with respect to the portion of the Non-Employee
         Director's Year-End Cash Balance to be switched. Such election shall
         pertain only to the Year-End Cash Balance for the year stated in the
         new Agreement. To make such an election for any subsequent Year-End
         Cash Balance, the Non-Employee Director shall execute another new
         Agreement as set forth above.

                  (ii) The number of shares of Stock shall be determined by
         dividing the portion of the Non-Employee Director's Year-End Cash
         Balance to be switched by the per share closing price of the Stock as
         reported on the Composite Tape for the first trading day of the year
         for which the election is effective, with any fractional shares
         remaining in the form of cash. Such shares of Stock shall be maintained
         in the Non-Employee Director's Memorandum account and shall accrue
         dividends pursuant to Section 4(g) hereof.

                  (iii) Non-Employee Directors may not switch Deferred
         Compensation in the form of Stock to the form of cash.

                                      -3-
<PAGE>

         (f) TERMINATION OR MODIFICATION OF ELECTION. Any termination of an
         Election shall be made in writing and provided to Apache's Corporate
         Secretary on or before December 31 of the year prior to the year for
         which the termination is to be effective. Any modification or amendment
         of an Election shall be made by executing a new Agreement which shall
         supersede any previous Agreement. Such new Agreement must be executed
         by the deferring Non-Employee Director and provided to Apache's
         Corporate Secretary on or before December 31 of the year prior to the
         year for which the amended Election is to be effective. Upon
         termination or modification of an Election, all Deferred Compensation
         payable to the Non-Employee Director terminating or modifying the
         Election shall be paid in accordance with the provisions of such
         Non-Employee Director's then effective Agreement, as modified or
         amended.

         (g) DIVIDENDS AND INTEREST; NO VOTING. All Deferrable Fees deferred by
         a Non-Employee Director in the form of and payable in Stock, and any
         portion of a Non-Employee Director's Year-End Cash Balance switched to
         the form of Stock, shall accrue dividends denominated in the cash value
         thereof as if such Stock were issued and outstanding as and when
         dividends are payable in respect of such Stock. All Deferrable Fees
         deferred by a Non-Employee Director in the form of and payable in cash,
         plus all previously accrued dividends and interest, shall accrue
         interest at the end of each calendar quarter or as of and through the
         date of payment of Deferred Compensation, as appropriate. The rate of
         interest per annum shall equal (i) the annual rate of interest earned
         by Apache's short-term marketable securities portfolio, or (ii) an
         equivalent index or market rate for similar investments in short-term
         marketable securities, divided by the number of days elapsed in the
         relevant period. Non-Employee Directors shall have no right to vote any
         Stock which constitutes Deferred Compensation prior to the date on
         which share certificates representing such Stock are issued.

         (h) MEMORANDUM ACCOUNT. Apache will maintain a separate Deferred
         Compensation memorandum account ("MEMORANDUM ACCOUNT") for each
         deferring Non-Employee Director. All Deferred Compensation and accrued
         dividends and interest accumulated in each Memorandum Account will be
         classified in the same category as other unsecured creditors and
         accounts payable of Apache, and neither the deferring Non-Employee
         Director nor his or her beneficiary or estate shall have any property
         interest whatsoever in any specific assets of Apache. All distributions
         from a Memorandum Account of Deferred Compensation deferred in the form
         of cash, and of accrued interest and dividends, shall be paid in cash.
         All distributions from a Memorandum Account of Deferred Compensation
         deferred in the form of Stock, and any portion of a Non-Employee
         Director's Year-End Cash Balance switched to the form of Stock, shall
         be made by issuance of shares of Stock.

         (i) TERMINATION OF DIRECTORSHIP. Upon retirement or other termination
         of a Non-Employee Director's directorship with Apache, or on a date
         specifically designated in a Non-Employee Director's Agreement, any
         balance in such Non-Employee Director's Memorandum Account shall be
         paid in cash and/or Stock, as applicable, (a) in a lump sum, or (b) in
         annual installments over a ten-year period (or over such shorter period
         as designated in the deferring Non-Employee Director's Agreement)
         beginning with the first business day of the calendar year immediately
         following retirement or other termination of such Non-Employee
         Director's directorship.

                                      -4-
<PAGE>

         (j) ASSIGNMENT AND TRANSFER. The right of the deferring Non-Employee
         Director or any other person to receive payments under the Plan shall
         not be assigned, transferred, pledged, or encumbered, except by will or
         by the laws of descent and distribution. Upon the death of a deferring
         Non-Employee Director, any balance remaining in such Non-Employee
         Director's Memorandum Account at the time of death shall be paid in
         cash and/or Stock, as applicable, in a lump sum to his or her
         designated beneficiary or, if there is no designated beneficiary, to
         his or her estate as soon as practicable after such Non-Employee
         Director's death.

         (k) ADJUSTMENTS IN STOCK. In the event of any merger, consolidation,
         liquidation, dissolution, recapitalization, or reorganization of
         Apache, split, subdivision, or consolidation of shares of Stock, the
         payment of a stock dividend, or any other material change in Apache's
         capital structure, the number of shares of Stock shown in each
         deferring Non-Employee Director's Memorandum Account shall be adjusted
         to reflect that number of shares of Stock or such cash, securities, or
         other property to which such Non-Employee Director would have been
         entitled if, immediately prior thereto, such Non-Employee Director had
         been the holder of record of the number of shares of Stock shown in the
         Memorandum Account. Notwithstanding the foregoing, the issuance by
         Apache of Stock, rights, options, or warrants to acquire Stock, or
         securities convertible or exchangeable into Stock in consideration of
         cash, property, labor, or services, whether or not for fair value,
         shall not result in an adjustment pursuant to this paragraph.

5. AMENDMENT OF PLAN. The Plan may be amended from time to time or terminated by
vote of the Board. Upon such amendment or termination, Non-Employee Directors
shall not be entitled to receive pursuant to the Plan any compensation or other
rights or benefits not accrued hereunder prior to the time of amendment or
termination hereof; provided, however, that no such Plan amendment or
termination shall impair any rights of Non-Employee Directors to amounts
previously accrued pursuant to the Plan or accumulated in such Non-Employee
Director's Memorandum Account.

6. SUCCESSORS AND ASSIGNS. The Plan is binding upon Apache and its successors
and assigns. The Plan shall continue in effect from year to year unless and
until revoked by the Board. Any such revocation shall operate only prospectively
and shall not affect the rights and obligations under elections previously made.

7. DEFINED TERMS. Except when otherwise indicated by the context, the definition
of any term herein in the singular shall also include the plural, and the
masculine gender shall also include the feminine gender.

8. GOVERNING LAW. The Plan and all Agreements hereunder shall be construed in
accordance with and governed by the laws of the State of Texas.

Dated May 1, 2003; Effective July 1, 2003

ATTEST:                                      APACHE CORPORATION

/s/ Cheri L. Peper                           /s/ Jeffrey M. Bender
----------------------------                 --------------------------------
Cheri L. Peper                               Jeffrey M. Bender
Corporate Secretary                          Vice President, Human Resources

                                      -5-exv10w1

 

EXHIBIT 10.1

FIFTH AMENDMENT TO AMENDED AND RESTATED LETTER AGREEMENT

(with Borrowing Base)

THIS FIFTH AMENDMENT TO AMENDED AND RESTATED LETTER AGREEMENT (this
“Amendment”) dated effective as of April 1, 2003 (the
“Effective Date”), is by
and between FRIEDMAN INDUSTRIES, INCORPORATED (“Borrower”) and JPMORGAN CHASE
BANK, formerly known as THE CHASE MANHATTAN BANK (“Bank”).

PRELIMINARY STATEMENT. Bank and Borrower have entered into an Amended And
Restated Letter Agreement dated as of April 1, 1995, as amended by a First
Amendment dated as of April 1, 1997, a Second Amendment dated as of July 21,
1997, a Third Amendment dated as of April 1, 1999, and a Fourth Amendment dated
as of June 1, 2001 (collectively, “Credit Agreement”). All capitalized terms
defined in the Credit Agreement and not otherwise defined herein shall have the
same meanings herein as in the Credit Agreement. Bank and Borrower have agreed
to amend the Credit Agreement to the extent set forth herein, and in order to,
among other things, renew, modify and decrease the Revolving Credit Note and to
reflect that the Advance/Term Note referenced in Section 1.2 of the Credit
Agreement has now been paid off.

NOW THEREFORE, in consideration of the premises and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged by
the parties hereto, Bank and Borrower hereby agree as follows:

1.     Section 1.1 of the Credit Agreement is amended to read as follows:

		
	 	“Subject to the terms and conditions hereof, the Bank agrees to make loans
(“Loan” or “Loans”) to Borrower from time to time before the Termination Date,
not to exceed at any one time outstanding $6,000,000.00 (the “Commitment”).
Borrower shall have the right to borrow, repay and reborrow. Bank and
Borrower agree that Chapter 346 of the Texas Finance Code shall not apply to
this Agreement, the Note or any Loan. The Loans shall be evidenced by, shall
bear interest and shall be payable as provided in the promissory note of
Borrower dated April 1, 2003 (together with any and all renewals, extensions,
modifications, replacements, and rearrangements thereof and substitutions
therefor, the “Note”), which is given in renewal, modification and decrease of
that certain promissory note dated June 1, 2001, maturing April 1, 2004, in the
original principal amount of $10,000,000.00. The purpose of the Loans made
under the Commitment is to provide the Borrower with working capital support.
“Termination Date” means the earlier of: (a) April 1, 2006; or (b) the date
specified by Bank in accordance with Section 5 of the Credit Agreement.

2.     The Advance/Term Note referenced in Section 1.2 of the Credit Agreement
has now been paid off and that Section is intentionally left blank.

3.     Section 2.1(c) of the Credit Agreement is amended to read “December 21,
2002” for the date of the last financial statement delivered to the Bank.

4.     Exhibit A of
the Credit Agreement is amended by and replaced with the
Exhibit A attached hereto for all purposes, which shall be a quarterly
compliance certificate as further described therein.

5.     Borrower hereby represents and warrants to the Bank that after giving
effect to the execution and delivery of this Amendment: (a) the
representations and warranties set forth in the Credit Agreement are true
and correct on the date hereof as though made on and as of such date; and
(b) no Event of Default, or event which with passage of time, the giving
of notice or both would become an Event of Default, has occurred and is
continuing as of the date hereof.

6.     This Amendment shall become effective as of the Effective Date upon
its execution and delivery by each of the parties named in the signature
lines below, and the term “Agreement” as used in the Credit Agreement
shall also refer to the Credit Agreement as amended by this Amendment.

7.     Borrower further acknowledges that each of the other Loan Documents is in
all other respects ratified and confirmed, and all of the rights, powers
and privileges created thereby or thereunder are ratified, extended,
carried forward and remain in full force and effect except as the Credit
Agreement is amended by this Agreement.

8.     This Amendment may
be executed in any number of counterparts and by
different parties hereto in separate counterparts, each of which when so
executed shall be deemed an original and all of which taken together shall
constitute but one and the same agreement.

9.     This Amendment shall be included within the definition of “Loan
Documents” as used in the Agreement.

10.     THIS AMENDMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE
LAWS OF THE STATE OF TEXAS AND AS APPLICABLE, THE LAWS OF THE UNITED
STATES OF AMERICA.

THIS WRITTEN AMENDMENT AND THE OTHER LOAN DOCUMENTS CONSTITUTE A “LOAN
AGREEMENT” AS DEFINED IN SECTION 26.02(a) OF THE TEXAS BUSINESS & COMMERCE
CODE, AND REPRESENTS THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE
CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL
AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE
PARTIES.

Page 1 of 2 Pages

 

IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed effective as of
the Effective Date.

	 	 	 	 	 	 	 
	 	 	
BORROWER:
	 	FRIEDMAN
INDUSTRIES, INCORPORATED
	 	 	 	 	 	 	 
	 	 	 	 	By:
	 	/s/ BEN HARPER
	 	 	 	 	 	 	

	 	 	 	 	Name:
	 	Ben Harper
	 	 	 	 	 	 	

	 	 	 	 	Title:
	 	Senior Vice President — Finance
	 	 	 	 	 	 	

	 	 	 	 	 	 	 
	 	 	
BANK:
	 	THE
CHASE MANHATTAN BANK
	 	 	 	 	 	 	 
	 	 	 	 	By:
	 	/s/ FAITH A. EDWARDS
	 	 	 	 	 	 	

	 	 	 	 	Name:
	 	Faith A. Edwards
	 	 	 	 	 	 	

	 	 	 	 	Title:
	 	Vice President
	 	 	 	 	 	 	

Page 2 of 2 Pages

 

EXHIBIT A to Agreement between

FRIEDMAN INDUSTRIES, INCORPORATED (“Borrower”) and JPMORGAN CHASE BANK (“Bank”)

dated as of April 1, 1995, as some may be amended, restated and supplemented in writing

REPORTING REQUIREMENTS, FINANCIAL COVENANTS

AND

COMPLIANCE CERTIFICATE FOR CURRENT REPORTING PERIOD ENDING                , 200   (“END DATE”)

A. REPORTING PERIOD. THIS EXHIBIT WILL BE IN PROPER FORM AND BE SUBMITTED QUARTERLY.

B.

	 	 	 	 	 	 	 
	Financial Reporting. Borrower will provide the following financial information within the times indicated:	 	Compliance
	 	 	 	 	 	 	Certificate
	 	 	 	 	 	 	 
	WHO	 	
WHEN DUE
	 	WHAT
	 	Compliance
	 	 	 	 	 	 	(Circle)
	 	 	 	 	 	 	Yes    No
	 	 	 	 	 	 	 
	BORROWER	 	
(i) Quarterly at such time as this statement is
	 	Borrower’s 10-Q together with a
	 	Yes    No
	 	 	
submitted to the Securities and Exchange
	 	certificate of compliance duly executed by	 	 
	 	 	
Commission (“SEC”)
	 	an officer of Borrower.	 	 
	 	 	 	 	 	 	 
	 	 	
(ii) On an annual basis at such time at this
	 	Borrower’s 10-K together with a certificate
	 	Yes    No
	 	 	
statement is submitted to the Securities and
	 	of compliance duly executed by an officer	 	 
	 	 	
Exchange Commission (“SEC”)
	 	of Borrower	 	 

C.

	 	 	 	 	 
	FINANCIAL COVENANTS. Borrower will comply with the
following financial covenants, defined in accordance with GAAP
incorporating the calculation adjustments indicated on the Compliance
Certificate:	 	
COMPLIANCE CERTIFICATE	 	 
	 	 	 	 	 
	REQUIRED	 	
ACTUAL REPORTED
	 	Compliance
	Except as specified otherwise, each covenant will be maintained at all
times and reported for each Reporting Period or as of each Reporting
Period End Date, as appropriate:	 	
For Current Reporting Period/as of the End Date
	 	(Circle)

Yes    No

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	1. Maintain a Working Capital of at least $10,000,000.00.	 	
$	 	 	-
	 	$	 	 	=
	 	$	 	 	Yes    No
	 	 	 	

	 	 	 	 	
	 	 	 	 	 	 	 
	 	 	 	Current Assets
	 	 	 	 	Current Liabilities
	 	 	 	 	Working Capital	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	2. Maintain a Tangible Net Worth as adjusted of at	 	 	Stockholders’ Equity
	 	 	 	 	 	 	 	 	$	 	 	Yes    No
	least $25,000,000.00.	 	 	Minus:
	 	 	 	 	Goodwill
	 	 	 	$	 	 	 
	 	 	 	 	 	 	 	 	Other Intangible Assets
	 	 	 	$	 	 	 
	 	 	 	Plus:
	 	 	 	 	Subordinated Debt
	 	 	 	$	 	 	 
	 	 	 	Equals:
	 	 	 	 	Tangible Net Worth
	 	 	 	$	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	3. Maintain a Current Ratio of at least 2.00 to 1.00.	 	
$	 	 	/
	 	$	 	 	=
	 	$	 	 	Yes    No
	 	 	 	

	 	 	 	 	
	 	 	 	 	 	 	 
	 	 	 	Current Assets
	 	 	 	 	Current Liabilities
	 	 	 	 	Current Ratio	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	4. Maintain a ratio of Total Indebtedness to Tangible
Net Worth plus Subordinated Debt of no more than 1.10
to 1.00.	 	 	Total Indebtedness (GAAP)	 	 	$	 	 	Yes    No
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	Tangible Net Worth
	 	 	 	 	 	 	 	 	$	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	
$	 	 	/
	 	$	 	 	=
	 	$	 	 	 
	 	 	 	

	 	 	 	 	
	 	 	 	 	 	 	 
	 	 	 	Total Indebtedness
	 	 	 	 	Tangible Net Worth
	 	 	 	 	Ratio	 	 

THE ABOVE SUMMARY REPRESENTS SOME OF THE COVENANTS AND AGREEMENTS CONTAINED IN
THE NOTE AND DOES NOT IN ANY WAY RESTRICT OR MODIFY THE TERMS AND CONDITIONS OF
THE NOTE. IN CASE OF CONFLICT BETWEEN THIS EXHIBIT A AND THE NOTE, THE NOTE
SHALL CONTROL.

The undersigned hereby certifies that the above information and computations
are true and correct and not misleading as of the date hereof, and that since
the date of the Borrower’s most recent Compliance Certificate (if any):

	 	o	 	No default or Event of Default has occurred under the Note during the
current Reporting Period, or been discovered from a prior period, and not
reported.
	 
	 	o	 	A default or Event of Default (as described below) has occurred during the
current Reporting Period or has been discovered from a prior period and is
being reported for the first time and:

	 	o	 	was cured on             .
	 
	 	o	 	was waived by Bank in writing on             .
	 
	 	o	 	is continuing.

	 	 	 
	Description of Event of Default:	 	 
	 	 	

Executed this             
             day of 
                        , 200  .

EXHIBIT A Page 1 of 2 Pages

 

	 	 	 
	BORROWER:	 	
FRIEDMAN INDUSTRIES, INCORPORATED

	 	 	 
	SIGNATURE:	 	 
	 	 	

	NAME:	 	 
	 	 	

	TITLE:	 	 
	 	 	

	ADDRESS:	 	 
	 	 	

	 	 	 
	 	 	

	 	 	 
	 	 	

EXHIBIT A Page 2 of 2 Pages

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