Document:

<PAGE>

                        PROFESSIONAL SERVICES AGREEMENT

     THIS PROFESSIONAL SERVICES AGREEMENT ("Agreement") dated as of July 12,
1999 is between Russell L. Allen ("Consultant") and North American Technologies
Group, Inc. ("Company").

                                  BACKGROUND

     A.  The Consultant is a certified public accountant and an experienced
financial professional.

     B.  The Company desires to retain the services of the Consultant for
business and financial advice, and the Consultant desires to perform such
services in such position on the terms set forth below.

     NOW, THEREFORE, intending to be legally bound hereby, the parties agree as
follows:

     1.  Term.

         (a) This Agreement shall be for a period of time ("Consulting Term")
commencing on July 12, 1999 and ending on March 31, 2000.  Thereafter, the
Agreement may be extended on a month-to-month basis upon the mutual agreement of
both parties.

         (b) The Consulting Term shall terminate on the date of Consultant's
death, in which event compensation owing to Consultant through the date of
Consultant's death shall be paid to his estate.  Consultant's estate will not be
entitled to any other compensation under this Agreement.

     2.  Duties.  Consultant shall provide business and financial consultation
services as more fully described on Exhibit A hereto.

     3.  Compensation.  During the Consulting Term, the Company shall compensate
Consultant as set forth on Exhibit B hereto.

     4.  Agreement not to Solicit Consultants.

         (a) Consultant will not, while at any time during the term of this
Agreement and for a period of twelve (12) months following the termination of
such Agreement, whether as an individual, or in any capacity, directly or
indirectly, solicit, employ, contract or retain any employee of the Company
without its written consent.

         (b) Consultant agrees that the remedy at law for any breach of this
Paragraph 4 would be inadequate and that the Company, its affiliates and
subsidiaries, shall be entitled to injunctive relief in addition to any other
remedy it may have upon breach of any provision of this Paragraph 4.
<PAGE>

     5.  Proprietary Information.

         (a) Consultant acknowledges that Consultant will have access to
certain proprietary and confidential information of the Company, as well as its
affiliates, subsidiaries, and their clients, which confidential and proprietary
information includes, but is not limited to, contemplated new products and
services, marketing and advertising campaigns, sales projections, creative
campaigns and themes, and financial information of the Company. Consultant
agrees to hold in confidence any such knowledge and information of a secret or
confidential nature with respect to the Company, as well as its affiliates,
subsidiaries and their clients during the Consulting Term or thereafter, other
than in connection with performing Consultant's services for the Company in
accordance with this Agreement, except to the extent that such information shall
have become public knowledge other than as a result of a violation of this
Agreement by the Consultant or of a breach by any other persons who have agreed
not to discuss, publish or make use of such information.

         (b) The Consultant agrees that the remedy at law for any breach of
this Paragraph 5 would be inadequate and that the Company, its affiliates and
subsidiaries, shall be entitled to injunctive relief in addition to any other
remedy it may have upon breach of any provision of this Paragraph 5.

     6.  Representations and Warranties of Consultant.  Consultant hereby
represents and warrants to the Company as follows:  (i) Consultant has the legal
capacity and unrestricted right to execute and deliver this Agreement and to
perform all of his obligations hereunder; (ii) the execution and delivery of
this Agreement by Consultant and the performance of his obligations hereunder
will not violate or be in conflict with any fiduciary or other duty, instrument,
agreement, document, arrangement, or other understanding to which Consultant is
a party or by which he is or may be bound or subject; and (iii) Consultant is
not a party to any instrument, agreement, document, arrangement, or other
understanding with any person (other than the Company) requiring or restricting
the use or disclosure of any confidential information or the provision of any
employment, consulting or other services that would prohibit the Consultant from
performing the services contemplated by this Agreement.

     7.  Limitation or Remedies.  Except as specifically provided in Paragraph
4(b) and Paragraph 5(b) hereof, Consultant's entire liability and Company's
exclusive remedy for damages from any cause whatsoever, including, but not
limited to, non-performance or misrepresentation, and regardless of the form of
actions, shall be limited to the amount which has been paid to Consultant by the
Company for performance hereunder.  In no event will Consultant be liable for
damages caused by the Company's negligence, or for special, incidental or
consequential damages, lost profits, lost use of equipment, loss of stored
memory, cost of substitute equipment or other down-time costs, even if
Consultant has been advised of the possibility of such damages, or for any claim
against the Company by any other party.  No action rising out of this Agreement,
regardless of the form of action, may be brought by Consultant more than one
year after the action has occurred.

     8.  Termination with Cause.  If either Party breaches this Agreement, the
other Party may terminate the Agreement or the Exhibit upon ten (10) business
days written notice to the

                                      -2-
<PAGE>

other, unless the breach is cured, to the satisfaction of the non-breaching
Party, within the notice period.

      9.  Termination without Cause.  Consultant or the Company may terminate
this Agreement, in whole or in part, at any time without cause following thirty
(30) day written notice to the other Party.

     10.  Force Majeure.  Either party shall be excused for delay in the
performance of any obligations hereunder when such delay is the result of or
attributable to the elements, acts of God, governmental authority,
unavailability of parts from manufacturer, delays in transportation or any other
cause beyond their reasonable control.

     11.  Choice of Law.  This Agreement shall be construed, interpreted and the
rights of the parties determined in accordance with the laws of the State of
Texas.

     12.  Successors and Assigns.  Neither this Agreement, nor any of
Consultant's rights, powers, duties or obligations hereunder, may be assigned by
Consultant.  This Agreement shall be binding upon and inure to the benefit of
Consultant and his heirs and legal representatives and the Company and its
successors.  Successors of the Company shall include, without limitation, any
company or companies acquiring, directly or indirectly, all or substantially all
of the assets of the Company, whether by merger, consolidation, purchase, lease
or otherwise.  Any such successor referred to in this paragraph shall thereafter
be deemed "the Company" for the purpose hereof.

     13.  Waiver.  Any waiver or consent from the Company or Consultant with
respect to any term or provision of this Agreement or any other aspect of the
Company's or Consultant's conduct or services hereunder shall be effective only
in the specific instance and for the specific purpose for which given and shall
not be deemed, regardless of frequency given, to be a further or continuing
waiver or consent.  The failure or delay of the Company or Consultant at any
time or times to require performance of, or to exercise any of its powers,
rights or remedies with respect to any term or provision of this Agreement or
any other aspect of the Company's or Consultant's conduct or services hereunder
in no manner (except as otherwise expressly provided herein) shall affect the
Company's or Consultant's right at a later time to enforce any such term or
provision.

     14.  Savings Clause.  The failure of the Company or the Consultant to at
any time enforce any provision hereof shall never be construed to be a waiver of
such provision or of the Company or the Consultant to enforce each and every
provision hereof at any time.  In the event any paragraph, provision or clause,
or any combination of same hereof shall be found or held to be unenforceable at
law or in equity, or under any ordinance, statute or regulation, such findings
or holdings shall not in any way affect the other paragraphs, provisions and
clauses which shall remain in full force and effect, and which shall, to the
extent possible, be interpreted and applied so as to effectuate the intent of
the paragraphs, provisions or clauses held to be unenforceable.

     15.  Miscellaneous.

          (a) This Agreement and any exhibits attached hereto represent the
entire agreement between the Parties.  Any modification to this Agreement may be
made only in

                                      -3-
<PAGE>

writing executed by the duly authorized representatives of Consultant and the
Company. Exhibits, attachments and amendments to this Agreement shall take
precedence in case of conflicting terms between the terms of the Agreement, and
those of the exhibits, attachment or amendment.

         (b) Consultant represents and agrees that he fully understands his
rights to discuss all aspects of this Agreement with his private attorney, that
to the extent he desires, he availed himself of this right, that he has
carefully read and fully understands all of the provisions of the Agreement,
that he is competent to execute this Agreement, that his decision to execute
this Agreement has not been obtained by any duress and that he freely and
voluntarily enters into this Agreement, and that he has read this document in
its entirety and fully understands the meaning, intent, and consequences of this
Agreement.

     IN WITNESS WHEREOF, the parties have executed this Professional Services
Agreement as of the date first above written.

                              NORTH AMERICAN TECHNOLOGIES
                              GROUP, INC.

                              By: /s/ Henry W. Sullivan
                                 --------------------------------
                                 Henry W. Sullivan
                                 President and Chief Executive Officer

                                  /s/ Russell L. Allen
                                 --------------------------------
                                 Russell L. Allen

                                      -4-
<PAGE>

                                   EXHIBIT A

             DESCRIPTION OF SERVICES TO BE PROVIDED BY CONSULTANT

Consultant shall be elected to the position of Treasurer and Chief Financial
Officer of North American Technologies Group, Inc.  Acting in this capacity,
Consultant will provide financial, business and management advice to the Board,
President, Officers and staff of the Company as required.  He will take
responsibility for all accounting, tax, financial reporting and cash management
requirements of the Company.  He will direct and take responsibility for all
filings, reports and other matters pertaining to compliance with the SEC rules
and regulations governing operation of the Company.  He will handle all
negotiations with banks and other financial institutions as required in the
normal course of company business.  He will assist and advise in matters of
strategy as regards the ongoing development of company business as his
experience allows.  Consultant's services will be made available on an as-needed
basis and Consultant will guarantee to make not less than one-half of his
professional time available to the Company if required.

                                      -5-
<PAGE>

                                   EXHIBIT B

                             COMPENSATION SCHEDULE

Consultant's services will be billed to the Company on a monthly basis at the
rate of $200.00/hour actually worked.  Company will pay for these services with
a combination of cash and Common Stock in the Company as follows:

     .  Part A - $80.00/hour paid in cash

     .  Part B - The equivalent of $120.00/hour in shares of the Company's
        Common Stock. The number of shares shall be determined by dividing
        amounts earned at the rate of $120.00/hour by the average of the closing
        stock prices for the month worked.

Invoices will be paid within 5 days of their acceptance.  The Company will
endeavor to have stock certificates issued as quickly as is possible.  The
responsibility for all other taxes on monies or stock delivered to the
Consultant will be the sole responsibility of the Consultant.  Consultant will,
however, be reimbursed for normal business expenses in accordance with Company
policy.

                                      -6-<PAGE>

                                   AGREEMENT

                        UNION PACIFIC RAILROAD COMPANY

                                      AND

                                 TIETEK, INC.

Confidential treatment has been requested for portions of this exhibit.  The
copy filed here omits the information subject to the confidentiality request.
Omissions are designated as XXXXX.  A complete version of this exhibit has been
filed separately with the Securities and Exchange Commission.
<PAGE>

                                   AGREEMENT

          This Agreement (the "Agreement") is made by and between TIETEK, INC.
("TieTek") and UNION PACIFIC RAILROAD COMPANY ("UP" or "Railroad"). TieTek and
UP are collectively referred to as "Parties" and sometimes individually referred
to as a "Party".

          WHEREAS, UP desires to purchase from TieTek, and TieTek desires to
sell to UP, certain composite cross ties ("Cross Ties") manufactured by TieTek
at its facility at 14315 West Hardy Road, Houston, TX (the "Facility").

          NOW, THEREFORE, the Parties herein agree to the following terms and
conditions:

1.  CROSS TIES.

    Each Cross Tie will be a 7"x9"x9' product manufactured according to the
specifications and minimum technical data set forth in Schedule A, attached
hereto and by this reference made a part hereof, as modified from time to time
by written mutual agreement of the Parties (the "Specifications").

2.  QUALITY.

    The following actions will be taken in an effort to improve, during the
term of this Agreement, the quality of Cross Ties sold to UP by TieTek
hereunder:

    (1)  TieTek will provide to UP a quality assurance process, including
         written confirmation that Specifications have been met for each Cross
         Tie sold to UP;

    (2)  The Facility will be accessible to UP quality control personnel upon
         reasonable request during normal business hours and will inform UP of a
         need for inspection once agreed upon number of ties have been
         manufactured; and

    (3)  TieTek will seek ISO 9000 Quality Certification for the Facility and
         manufacturing process, working with UP's Engineering and Supply
         Departments during the term of this Agreement.

3.  TERM.

    Except as otherwise provided herein, the initial term of this Agreement
shall be from March 1, 2000 through February 28, 2002 (the "Initial Term");
provided, however, that UP shall have the option to extend this Agreement for a
period of two (2) years beyond the Initial Term (the "Extension"), subject only
to the Parties' agreement upon the purchase price per Cross Tie and the Cross
Tie production schedule during the Extension; and, provided, further, that
either Party may terminate this Agreement at any time during the Initial Term or
the Extension upon the giving of one (1) year's prior written notice of
termination to the other Party.
<PAGE>

4.  PRICE.

    The purchase price per Cross Tie during the Initial Term shall be as set
forth below; provided, however, that in recognition of the special relationship
and development history between UP and TieTek, the purchase price per Cross Tie
charged UP hereunder shall not exceed the purchase price per Cross Tie charged
by TieTek to any other of its customers during the term of this Agreement. Each
volume level must be completed before the next volume level pricing is
effective.

QUANTITY DURING TERM OF AGREEMENT        PURCHASE PRICE PER CROSS TIE
---------------------------------------------------------------------
XXXXX Ties                                       $XXXXX
---------------------------------------------------------------------
XXXXX Ties                                       $XXXXX
---------------------------------------------------------------------
XXXXX Ties                                       $XXXXX
---------------------------------------------------------------------
XXXXX Ties                                       $XXXXX
---------------------------------------------------------------------
XXXXX Ties                                       $XXXXX
---------------------------------------------------------------------
XXXXX                                            XXXXX
---------------------------------------------------------------------

5.   PRODUCTION SCHEDULE; PERFORMANCE.

                     TIETEK CROSS TIE PRODUCTION SCHEDULE

                   --------------------------------------------
                   YEAR 2000                             UP
                   --------------------------------------------
                   January 2000                         XXXXX
                   --------------------------------------------
                   February 2000                        XXXXX
                   --------------------------------------------
                   March 2000                           XXXXX
                   --------------------------------------------
                   April 2000                           XXXXX
                   --------------------------------------------
                   May 2000                             XXXXX
                   --------------------------------------------
                   June 2000                            XXXXX
                   --------------------------------------------
                   July 2000                            XXXXX
                   --------------------------------------------
                   August                               XXXXX
                   --------------------------------------------
                   September 2000                       XXXXX
                   --------------------------------------------
                   October 2000                         XXXXX
                   --------------------------------------------
                   November 2000                        XXXXX
                   --------------------------------------------
                   December 2000                        XXXXX
                   --------------------------------------------
                   TOTAL:                               XXXXX
                   --------------------------------------------

                                       3
<PAGE>

                   --------------------------------------------
                   YEAR 2001                             UP
                   --------------------------------------------
                   January 2001                         XXXXX
                   --------------------------------------------
                   February 2001                        XXXXX
                   --------------------------------------------
                   March 2001                           XXXXX
                   --------------------------------------------
                   April 2001                           XXXXX
                   --------------------------------------------
                   May 2001                             XXXXX
                   --------------------------------------------
                   June 2001                            XXXXX
                   --------------------------------------------
                   July 2001                            XXXXX
                   --------------------------------------------
                   August 2001                          XXXXX
                   --------------------------------------------
                   September 2001                       XXXXX
                   --------------------------------------------
                   October 2001                         XXXXX
                   --------------------------------------------
                   November 2001                        XXXXX
                   --------------------------------------------
                   December 2001                        XXXXX
                   --------------------------------------------
                   TOTAL:                               XXXXX
                   --------------------------------------------
                   2-YEAR TOTAL:                        XXXXX
                   --------------------------------------------

     TieTek shall meet the following minimum performance requirements; provided,
however, that TieTek will not be required to exceed the production schedule set
forth above. TieTek shall use all reasonable efforts to exceed such minimum
performance requirements if so requested by the UP Representative (as such term
is defined below):

     (1)  Band XXXXX Cross Ties/Week during 2000: Band XXXXX Cross Ties/Week
          during 2001.

     (2)  Load XXXXX Cross Ties/Week during 2000; Load XXXXX Cross Ties/Week
          during 2001.

     (3)  XXXXX

     (4)  XXXXX

6.  FORECAST FOR CAPITAL EXPENDITURES.

    TieTek will spend a minimum of $1.5 million at the Facility from November
1999 to February 28, 2002 to provide the Facility with on-going safety, quality
and productivity improvements which will ensure that TieTek will meet or exceed
the minimum technical data set forth in Schedule A.

7.  UNION PACIFIC REPRESENTATIVE.

    UP, in its sole discretion, shall assign to the Facility, as needed on a
full or part time basis, one or more representatives (each, a "UP
Representative") to accept or reject Cross Ties in a timely manner and to
otherwise act on behalf of UP in all matters pertaining to this Agreement.
TieTek shall, without cost to UP, furnish any such UP Representative with
suitable office space

                                       4
<PAGE>

with telephone and necessary computer equipment (fax, PC, keyboard and printer)
at the Facility. TieTek to bill cars using UP Internet billing procedures.

8.  RIGHT TO REJECTION AND INSPECTION.

    UP shall have the right, through the UP Representative(s), to reject, prior
to shipment from the Facility, any Cross Ties not meeting the requirements of
Schedule A of this Agreement, the right of access to the Facility, the right to
inspect and test the Cross Ties at the Facility and the right to inspect the
handling of all Cross Ties. The basic records of TieTek, insofar as they relate
to this Agreement, shall be open at all reasonable times to inspection by the UP
Representative(s) during regular office hours.

9.  FORCE MAJEURE.

    In the event of fire, flood, drought, earthquake, windstorm, accident,
explosion, war, civil commotion, act of governmental authority, labor trouble,
embargo, transportation failure, reduced supply of materials, breakage of
machinery or apparatus, inability to obtain from regular sources of supply any
commodity necessary or customarily used in the performance of this Agreement, or
any other circumstances beyond the reasonable control of a Party hereto,
preventing such affected Party from fulfilling, in whole or in part, its
obligations hereunder, such obligations shall be so suspended during the period
of such occurrence without liability on the part of the affected Party, but this
Agreement shall otherwise remain unaffected,

10.  XXXXX

     XXXXX.

11.  ENVIRONMENTAL AND OTHER CONCERNS.

     Nothing contained herein shall be construed or interpreted as making UP a
generator of hazardous substances or wastes or an operator of a treatment,
storage or disposal facility pursuant to the provisions of the Comprehensive
Environmental Response, Compensation and Liability Act (CERCLA), the Resource
Conservation Recovery Act (RCRA), or any state statute governing the generation,
treatment, storage and disposal of hazardous substances or wastes.

     TieTek shall assume and be responsible for all compliance with the
provisions of RCRA, CERCLA and any state statute governing the generation and
handling of hazardous substances or wastes at the Facility,

     If, notwithstanding the provisions of this Section, UP shall be interpreted
to be a hazardous substance or waste generator or operator of a treatment,
storage or disposal facility under RCRA, CERCLA or any state statute governing
the treatment, storage and disposal of hazardous waste, as a result of the
activities provided for hereunder which occur at the Facility, TieTek agrees to
indemnify, hold harmless and defend UP for any and all costs, damages or
expenses of any sort resulting from such an interpretation.

                                       5
<PAGE>

12.  SHIPPING.

     Cross ties will be banded in 15-piece bundles and will be priced FOB the
Facility, loaded in gondola cars or equivalent. During the initial period of
operation until and if a rail spur and siding is constructed, TieTek will load
the Cross Ties in railcars on the UP freight track in Houston, Aldine Team Track
third track, not mainline, opposite the Facility. TieTek will execute a UP
"Contractor's Release of Liability" form prior to commencing loading of ties at
the Aldine Team Track. XXXXX. XXXXX.

     XXXXX.

     TieTek and UP will work cooperatively in good faith to expedite the
construction of a rail spur and siding into the Facility. XXXXX. XXXXX.
Responsibility for cost of rail, ballast and switch(es) will be negotiated at
the time a final decision is made on rail spur and siding.

13.  TERMS OF SALE.

     This Agreement will serve as the basis for purchase orders from UP. TieTek
will invoice UP, under such purchase orders, when Cross Ties are shipped to UP
from the Facility. TieTek's invoice will reflect Cross Ties shipped FOB the
Facility loaded in UP contracted trucks or UP railcars and will be due and
payable in thirty (30) days after receipt, in UP's Accounting Department, Omaha,
NE, of correct invoice and signed shipping document indicating car numbers or
truck numbers. TieTek to be EDI purchase order and invoice ready by March 1,
2000.

14.  TECHNICAL ASSISTANCE.

     TieTek will provide field support for handling and installation of Cross
Ties when requested by UP Supply and/or Engineering Departments.

15.  TIETEK CROSS TIE DISPOSAL.

     TieTek will accept Cross Ties discarded or replaced by UP. TieTek will
credit UP with a recycling payment of XXXXX Dollars ($XXXXX) per Cross Tie
delivered to TieTek's Facility or other mutually agreeable location.

16.  GOVERNING LAW.

     The construction and Interpretation of this Agreement shall be in
accordance with the laws of the State of Nebraska and the applicable laws of the
United States.

17.  NOTICE.

     Any notice required or permitted hereunder shall be deemed to have been
properly given when made in writing and delivered personally to an officer of
the party for whom it is intended or upon mailing the notice by registered or
certified mail to the following address:

                                       6
<PAGE>

       If to TieTek:   TieTek, Inc.
                       14315 West Hardy Road
                       Houston, Texas 77060
                       ATTN.: Henry W. Sullivan
                       FAX: 281-847-1791

       If to UP:       Union Pacific Railroad Company
                       Supply Department
                       1416 Dodge Street, Room 200
                       Omaha, Nebraska 68179-0200
                       ATTN.: Gary L. Hunter
                       FAX: 402-271-3245

18.  AMENDMENTS.

     This Agreement shall not be modified, amended or otherwise varied by any
oral agreement or representation, and all modifications, amendments and
variations shall be by an instrument in writing executed by the Parties hereto.

19.  ASSIGNMENT.

     This Agreement may not be assigned, in whole or in part, by either Party
without the prior written consent of the other Party, which consent shall not be
unreasonably withheld.

20.  NO PARTNERSHIP.

     Nothing in this Agreement shall in any way be construed to make the Parties
partners, joint venturers, agents, servants or employees of one another and no
such relationship is intended.

21.  CONFIDENTIALITY.

     During the performance of each Party's obligation under this Agreement,
each Party may obtain confidential and/or proprietary information from the other
Party which is identified in writing as such. Each Party agrees that all such
information, whether technical, financial, business or other nature, shall be
held in confidence and not used to the detriment of the disclosing Party by the
non-disclosing Party. This Section shall not apply to any information which (a)
is now or hereafter (by operation of law) becomes information in the public
domain, (b) can be shown by a Party to have received on a non-confidential basis
from a third Party who did not acquire same, directly or indirectly, from the
other party, (c) can be shown by a Party to have been developed without access
to any confidential information otherwise covered by this Section, (d) is
required to be disclosed as a matter of law, or (e) is required to be disclosed
pursuant to written agreement between the Parties.

                                       7
<PAGE>

     IN WITNESS WHEREOF, the parties hereto have executed this Agreement this 31
day of January, 2000.

                              TIETEK, INC.

                              By: /s/ Henry W. Sullivan
                                  --------------------------
                              Name:  Henry W. Sullivan
                                     -----------------------
                              Title: President
                                     -----------------------

                              UNION PACIFIC RAILROAD COMPANY

                              By: /s/ Ike Evans
                                  --------------------------
                              Name:  Ike Evans
                                     -----------------------
                              Title: President
                                     -----------------------

                                       8
<PAGE>

                                                                    SCHEDULE A
                                                                   (PAGE 1 OF 3)

                                SPECIFICATIONS

1.  Material: Polymer (plastic) component consisting of polyolefins, vulcanized
    rubber polymeric component, reinforcements, additives, fillers and not toxic
    preservatives,

2.  Dimensions: 7"x9"x9' Cross Ties will have the following characteristics:

    a.  Width/thickness (-0" +  1/2") of specified size.

    b.  Length: (-1/2" + 2") of specified size.

    c.  Flatness in the rail seat area: XXXXX" concave and/or XXXXX" convex
        maximum.

3.  General Quality: Every Cross Tie will be inspected visually and by
    nondestructive test methods to detect any defects that will affect their
    strength, utilization or durability as Cross Ties such as: dimensions,
    surface imperfections and manufacturing defects. XXXXX.

4.  Inspection:

    a.  Facility: Cross ties, process and procedures will be open to inspection
        and review during normal business hours, subject to the terms of
        confidentiality under Article 21 of this Agreement.

    b.  No void greater than 1/2" in diameter and 6" long will be allowed within
        1 1/2" of any surface of the Cross Tie.

    c.  XXXXX.

5.  Straightness/Twisting Defects: Any Cross Tie which does not meet the
    following characteristics of good manufacturing will be rejected:

    No Cross Tie will deviate from straightness by more than 1" along its
    length. Straightness will be measured from any edge of a Cross Tie to a
    straight line parallel to the edge of the Cross Tie. This will be true for
    the top to bottom of the Cross Tie, as well as from side to side of the
    Cross Tie.

6.  Any Cross Tie not meeting the above Specifications will be rejected.

7.  XXXXX.
<PAGE>

                                                                    SCHEDULE A
                                                                   (PAGE 2 OF 3)

8.  Shipping:

    a.  Trucked Cross Ties - All trucked Cross Ties will have a prenumbered
        shipping ticket accompanying each truckload. Each load will have
        adequate dunnage to allow forklift unloading

    b.  Rail Cross Ties - All Cross Ties will be loaded securely in gondolas or
        centerbeam cars, with each car loaded to the maximum practical capacity.

    c.  All Cross Ties will be bundled in groups of 15 and banded (2 each) with
        1 1/4" .029 high tensile banding.

                                       2
<PAGE>

                                                                    SCHEDULE A
                                                                   (PAGE 3 OF 3)

                            MINIMUM TECHNICAL DATA

               ----------------------------------------------------------------
               APPEARANCE                Gray to matte black
               ----------------------------------------------------------------
               SIZE                      7"x9"x9'(other sizes by special order)
               ----------------------------------------------------------------
               WEIGHT                    235 to 260 lbs. For standard size
               ----------------------------------------------------------------
               SURFACE HARDNESS          XXXXX
               ----------------------------------------------------------------
               DENSITY                   XXXXX
               ----------------------------------------------------------------
               THERMAL EXPANSION         XXXXX
               ----------------------------------------------------------------
               MODULUS OF RUPTURE        XXXXX
               ----------------------------------------------------------------
               MODULUS OF ELASTICITY     XXXXX
               ----------------------------------------------------------------
               COMPRESSION               XXXXX
               ----------------------------------------------------------------
               SPIKE INSERTION           XXXXX
               ----------------------------------------------------------------
               SPIKE LATERAL             XXXXX
               ----------------------------------------------------------------
               SPIKE WITHDRAWAL          XXXXX
               ----------------------------------------------------------------
               RESISTIVITY               XXXXX
               ----------------------------------------------------------------
               SINGLE TIE PUSH           XXXXX
               ----------------------------------------------------------------
               XXXXX                     XXXXX
               ----------------------------------------------------------------

               XXXX

               XXXX

                                       3

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00005-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00005-of-00352.parquet"}]]