Document:

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                         CONSULTING EMPLOYMENT AGREEMENT

         THIS CONSULTING EMPLOYMENT AGREEMENT (the "AGREEMENT") is made and
entered into as of the 1st day of January, 2000, by and between FINTUBE
TECHNOLOGIES, INC., an Oklahoma corporation, with its principal place of
business located at 15660 N. Dallas Parkway, Suite 500, Dallas, Texas 75248
(the "COMPANY"), Jerry E. Ryan, an individual residing at 3201 East 65th
Street, Tulsa, Oklahoma 74136 (the "EMPLOYEE"), and LONE STAR TECHNOLOGIES,
INC., a Delaware corporation with its principal place of business located at
15660 N. Dallas Parkway, Suite 500, Dallas, Texas 75248 (the "GUARANTOR").

                                    RECITALS

         A. The Company has acquired substantially all of the assets of
Fintube Limited Partnership, and has determined that it is in the best
interest of the Company for the Company to employ the Employee to render
advice to the Company for the term of this Agreement.

         B. The Employee has considerable knowledge and experience relating
to the business of the Company, as a result of the Employees past service as
the founder and the Chief Executive Officer of Fintube Limited Partnership,
the predecessor of the Company.

         C. The Employee is willing to be employed by the Company to render
advice to the Company, pursuant to the terms of this Agreement.

         NOW, THEREFORE, in consideration of the foregoing, of the mutual
promises set forth herein, and of other good and valuable consideration, the
receipt and sufficiency of which is hereby acknowledged, the parties agrees
as follows:

         1.       EMPLOYMENT. For the term of this Agreement, the Company
                  hereby employs the Employee and agrees to pay to or for
                  the benefit of the Employee, the consideration set forth
                  herein for the Employee's services hereunder.  For the
                  term of this Agreement, the Employee hereby accepts his
                  employment by the Company for the consideration to be
                  paid by the Company hereunder.

         2.       ACTIVITIES OF EMPLOYEE. For the term of this Agreement,
                  the Employee agrees to provide services to the Company
                  with regard to the Company's business and operations, as
                  mutually agreed by the Employee and the Company, at
                  mutually acceptable times, in Tulsa, Oklahoma or at any
                  other mutually satisfactory location.

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                  The Employee shall advise the Company in connection with the
                  maintenance and furtherance of satisfactory relationships
                  between the Company and its existing and prospective customers
                  and others having business relationships with the Company, and
                  in connection with representing the Company to trade groups
                  and other organizations generally. In addition, Employee will
                  lead the development of major Company expansion strategies for
                  international markets, including but not limited to Mexico and
                  South America. Employee will assist in the preparation and
                  evaluation of the Company's annual business and capital plan.
                  Employee will also support the enhancement of the Company's
                  customer, supplier and other industry relationships to expand
                  markets and increase profitability. Employee will participate
                  in the formulation of management development plans and key
                  employee evaluations. Employee shall contribute to technology
                  development and product enhancements for all product segments.
                  Employee will assist Guarantor with corporate and investor
                  relations, as needed.

         3.       REPRESENTATIONS. WARRANTIES AND COVENANTS OF EMPLOYEE.
                  The Employee represents and warrants that he has not
                  committed to any employment or consulting duties, and
                  will not, for the term of this Agreement, assume any
                  such duties which would interfere with his provision of
                  services to the Company hereunder.

         4.       OFFICE/SECRETARIAL ASSISTANCE. For the term of this Agreement,
                  the Company will pay the expense of the Employee's current
                  office space and secretarial assistance in Tulsa, Oklahoma, to
                  allow the Employee to provide the services required hereunder.

         5.       CONSIDERATION. The Company shall pay to the Employee,
                  for the Employee's services hereunder, the following
                  amounts:

                  a)       BASE CONSIDERATION. The Company shall pay to the
                           Employee, commencing on January 1, 2000, and
                           continuing on the 15th and the last day of each
                           month thereafter until December 31, 2002, the
                           amount of ELEVEN THOUSAND FOUR HUNDRED AND
                           SEVENTEEN DOLLARS ($11,417) on the 15th and the
                           last day of each month, as the Employee's "BASE
                           CONSIDERATION"; and

                  b)       BONUS CONSIDERATION. The Company shall pay an
                           annual bonus to the Employee, in an amount to be
                           determined by the Company in accordance with the
                           bonus accrual and terms of the Fintube Limited
                           Partnership bonus Agreement for the year ending
                           December 31, l 999. For each calendar year
                           thereafter for the term of this Agreement, the
                           Company shall pay an annual bonus to the Employee
                           at the Company's sole discretion (collectively,
                           Employee's "BONUS CONSIDERATION").

                                        -2-
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         6.       TERM. The term of this Agreement shall commence as of
                  the date first set forth above, and shall continue
                  until December 31, 2002, at which time this Agreement
                  shall terminate, unless sooner terminated, or extended
                  by the mutual Agreement of the parties hereto;
                  provided, however, the termination of this Agreement
                  shall not terminate, diminish or otherwise affect the
                  obligations of the Employee to the Company set forth in
                  paragraphs 16, 17 and 18 of this Agreement.

         7.       INSURANCE AND EXPENSES.

                  a)       During the term of this Agreement, the Company, at
                           its sole cost and expense, shall pay for and keep
                           in full force and effect group hospitalization,
                           basic health, disability, dental and major medical
                           insurance that covers Employee and his wife. This
                           insurance shall provide the Employee and his wife
                           the coverage and benefits provided to all other
                           employees of the Company; and

                  b)       During the term of this Agreement, the Company, at
                           its sole cost and expense, shall pay for and keep
                           in full force and effect, existing life insurance
                           policies or life insurance policies providing
                           substantially equivalent benefits and having
                           substantially equivalent terms, on the life of
                           Consultant, with the beneficiary of said policies
                           being any person designated by Consultant; and

                  c)       During the term of this Agreement, the Company
                           shall pay or promptly reimburse Employee for all
                           travel, entertainment, telephone, office and other
                           expenses paid or incurred by Employee in
                           connection with the performance of his services
                           under this Agreement, upon presentation of expense
                           statements, vouchers, or other evidence of expense
                           to the Company.

         8.       STOCK OPTIONS. In consideration of Employee's agreements set
                  forth in paragraphs 16, 17 and 18, Guarantor agrees to award
                  to the Employee on the date hereof, the option to purchase
                  30,000 shares of the common stock of the Guarantor, pursuant
                  to Guarantor's 1985 Long Term Incentive Plan.

         9.       401-K PARTICIPATION. For the term of this Agreement,
                  the Employee shall be entitled to participate in the
                  Company's 401-K Plan.

         10.      REPRESENTATIONS. WARRANTIES. AND COVENANTS OF THE
                  COMPANY/GUARANTOR. The Company and the Guarantor hereby
                  represent and warrant that each entity has full power and
                  legal right and authority to execute, deliver, and perform
                  this Agreement, and that the officer executing this Agreement
                  on behalf of each entity has the full power and authority to
                  do so.

                                        -3-
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         11.      INDEMNIFICATION OF EMPLOYEE. The Company and the
                  Guarantor agree to pay for and provide to the Employee
                  indemnity insurance that will indemnify and hold
                  Employee harmless from any claims against Employee, on
                  the same terms and conditions that benefit the officers
                  and directors of the Guarantor. Such indemnity
                  insurance will protect the Employee in the capacities
                  in which he serves the Company and/or the Guarantor.

         12.      TERMINATION.

                  a)       DEATH. In the event of death of Employee during the
                           term of this Agreement, Employee's employment
                           hereunder shall immediately terminate, and neither
                           the Company, the estate, nor any other legal
                           representative of Employee shall have any further
                           rights or obligations under this Agreement;

                  b)       DISABILITY.  If Employee becomes incapacitated by
                           reason of sickness, accident or other physical or
                           mental disability and is unable to perform the
                           essential functions of his position on a permanent
                           basis, after taking into consideration reasonable
                           accommodations, the services of Employee may be
                           terminated by the Company upon thirty (30) days
                           prior written notice to Employee, and neither the
                           Employee nor the Company shall have any further
                           rights or obligations under this Agreement, except
                           as provided in paragraphs 16, 17 and 18, which
                           provisions shall survive such termination;

                  c)       DUE CAUSE. The services of Employee may be
                           terminated by the Company at any time during the
                           term of this Agreement for Due Cause (as defined
                           below). In the event of such termination, the
                           Company shall pay to the Employee the Base
                           Consideration and benefits identified in
                           paragraphs 4, 5, 7, and 11 accrued to the date of
                           such termination. Upon such payment by the
                           Company, neither the Employee nor the Company
                           shall have any further rights or obligations under
                           this Agreement, except as provided in paragraphs
                           16, 17 and 18, which provisions shall survive such
                           termination. For the purpose of this Agreement,
                           "DUE CAUSE" shall relate solely to the activities
                           of Employee identified in paragraph 2 herein above
                           and shall mean: (i) willful failure to carry out a
                           specific directive of the Board of Directors or
                           the Chairman of the Board of the Company that
                           continues for twenty (20) days after the Employee
                           receives written notice of such directive; (ii)
                           indictment of Employee for a felony; (iii) any
                           failure of Employee to perform substantially his
                           duties under this Agreement, which failure is not
                           cured within thirty (30) days after written notice
                           from the Board of Directors or the Chairman of the
                           Board of the Company specifying the nonperformance
                           and the requisite remedial action required of
                           Employee; (iv) commission of any act intentionally
                           against the interests of the Company which causes it
                           material injury; or (v) commission of any material
                           act of fraud or dishonesty.

                                        -4-
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                  d)       OTHER TERMINATION BY THE COMPANY.  The Company may
                           terminate Employee's services prior to the
                           expiration of the term of this Agreement for
                           whatever reason it deems appropriate, or for no
                           reason; provided, however, that in the event that
                           such termination is not pursuant to paragraphs
                           12(a), 12(b) or 12(c), the Company shall continue
                           to pay to Employee (or his estate or other legal
                           representative in the case of the death of
                           Employee subsequent to such termination), all of
                           the unpaid Consideration provided for in paragraph
                           5 of this Agreement, and the benefits identified
                           in paragraphs 7 and 11 of this Agreement through
                           the end of the term of this Agreement; and

                  e)       RIGHTS TO BENEFITS. Upon the termination of
                           Employee's services under any provision contained
                           in this paragraph 12, the rights and benefits of
                           the Employee, his estate or other legal
                           representative under any employee benefit plans or
                           programs of the Company, if any, and Guarantor's
                           1985 Long-Term Incentive Plan will be determined
                           in accordance with the terms and provisions of
                           such plans and programs.

         13.      OTHER ACTIVITIES. The Company hereby acknowledges and agrees
                  that during the term of this Agreement, the Employee may
                  engage directly or indirectly in other businesses and ventures
                  that would not conflict with his rendering services to the
                  Company hereunder or the terms of paragraphs 16, 17 or 18 of
                  this Agreement.

         14.      SCOPE OF AUTHORITY. It is specifically agreed that the
                  Employee shall have no authority to speak for, make
                  agreements on behalf of, or otherwise bind the Company.

         15.      PAYMENT OF TAXES. Payment of compensation to the
                  Employee shall be subject to all applicable federal and
                  state withholding and payroll taxes.

         16.      COVENANT AGAINST COMPETITION. Employees agrees that, for a
                  period from the date hereof until the date which is two years
                  after the date on which this Agreement terminates, he will
                  not, directly or indirectly, engage in any of the following
                  actions:

                  a)       Either as employee, employer, consultant, agent,
                           principal, partner, shareholder, corporate officer
                           or director of any corporation, partnership or
                           other entity, or in any other capacity, engage or
                           participate in any business or activity that is in
                           competition in any manner whatsoever with the
                           business of the Company (including its
                           subsidiaries) as conducted at any time during the
                           term of this Agreement (the "Restricted Business")
                           anywhere in North America The Restricted Business
                           shall be the business of designing, manufacturing,
                           processing, engineering and selling welded finned
                           tubes, economizers, boilertubes, extended surface
                           inside diameter tubing, and other products
                           specifically marketed by the Company (including
                           its subsidiaries)

                                        -5-
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                           for use in heat recovery applications, steel coil
                           slitting and storage, rolling steel rod to strip
                           (oscillate wound products), and selling and
                           licensing machinery and echnology related to the
                           foregoing. However, nothing in this subsection
                           (a) shall preclude Employee from holding less than
                           5% of the outstanding capital stock of any
                           corporation required to file periodic reports with
                           the Securities and Exchange Commission under Section
                           13 or 15(d) of the Securities Exchange Act of
                           1934, as amended, the securities of which are
                           listed on any securities exchange, quoted on the
                           National Association of Securities Dealers
                           Automated Quotation System or traded in the over-
                           the-counter market.

                  b)       Whether for Employee's own account or for the
                           account of any other individual, partnership,
                           firm, corporation or other business organization,
                           solicit, endeavor to entice away from the Company
                           (or any of its affiliates), or otherwise interfere
                           with the Company's relationship (or that of any of
                           its affiliates) with any person who is employed by
                           or otherwise engaged to perform services for the
                           Company (or any of its affiliates) (including, but
                           not limited to, any independent sales
                           representatives or organizations), or solicit or
                           transact business with any person, partnership,
                           firm, corporation or other business organization
                           that has purchased products from the Company
                           (including its subsidiaries) during the term of
                           this Agreement.

                  If the scope of the restrictions in this Section are
                  determined by a court of competent jurisdiction to be too
                  broad to permit enforcement of such restrictions to their full
                  extent, then such restrictions shall be construed or rewritten
                  (blue-lined) so as to be enforceable to the maximum extent
                  permitted by law, and Employee hereby consents, to the extent
                  he may lawfully do so, to the judicial modification of the
                  scope of such restrictions in any proceeding brought to
                  enforce them.

         17.      ASSIGNMENT OF INVENTIONS. All rights to discoveries,
                  inventions, improvements, designs, work product and
                  innovations (including without limitation all data and
                  records pertaining thereto) that relate to the Company
                  and its affiliates, whether or not specifically within
                  Employee's duties or responsibilities and whether or
                  not patentable, copyrightable or reduced to writing,
                  that Employee may discover, invent, create or originate
                  during the term of his employment hereunder, either
                  alone or with others and whether or not during working
                  hours or by the use of the facilities of the Company or
                  its affiliates ("Inventions"), shall be the exclusive
                  property of the Company and its affiliates. Employee
                  shall promptly disclose all Inventions to the Company,
                  shall execute at the request of the Company any
                  assignments or other documents the Company may deem
                  necessary to protect or perfect its rights therein, and
                  shall assist the Company and its affiliates, at the
                  Company's expense, in obtaining, defending and
                  enforcing the rights of the Company and its affiliates
                  therein. Employee hereby appoints each of the Company
                  and any of its affiliates as

                                        -6-
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                  his attorney-in-fact to execute on his behalf any
                  assignments or other documents deemed necessary by the
                  Company and any of its affiliates to protect or perfect
                  its rights to any Inventions.

         18.      COVENANT OF CONFIDENTIALITY.

                  a)       DEFINITIONS. For the purpose of this Agreement:

                           i)       "CONFIDENTIAL INFORMATION" means any and all
                                    discoveries, ideas, facts, inventions, or
                                    any other information relating to the
                                    operation of the Company's business, of
                                    whatever type and in whatever form,
                                    including but not limited to documents,
                                    reports, plans, proposals, marketing plans,
                                    sales plans, customer lists, or materials
                                    that come into the Employee's possession,
                                    and any other discoveries, ideas, business
                                    plans, or facts relating to any of the
                                    foregoing, whether developed by the Employee
                                    or by others; and

                           ii)      "TRADE SECRETS" means any and all
                                    Confidentiality Information that has
                                    economic value, actual or potential, because
                                    it is not generally known to persons who
                                    could obtain economic value from its
                                    disclosure or use, about which the Company
                                    has undertaken reasonable efforts to
                                    maintain its secrecy (whether or not
                                    divulged by the Employee or other employees
                                    or agents of the Company) and which has not
                                    previously been publicly released by duty
                                    authorized representatives of the Company.

                  b)       DISCLOSURE. The Employee agrees that any and all
                           Confidential Information and Trade Secrets
                           received or developed by the Employee, or
                           disclosed to the Employee, are to be used only for
                           the purposes for which they are provided. The
                           Employee also agrees that from the date of this
                           Agreement to a date that is two (2) years after
                           the date that this Agreement is terminated, the
                           Employee shall not, directly or indirectly, except
                           as required by the normal business of the Company,
                           or as expressly authorized in writing by the board
                           of directors of the Company, take the following
                           actions, to wit:

                           i)       disclose, publish or make available any
                                    Confidential Information or Trade Secrets,
                                    other than to an employee, officer or
                                    director of the Company who, in the
                                    reasonable exercise of the Employee's
                                    judgment, needs to know such Confidential
                                    Information or Trade Secrets in order to
                                    perform his or her duties to the Company;

                                        -7-
<PAGE>

                           ii)      sell, transfer or otherwise use or exploit
                                    Confidential Information or Trade Secrets
                                    for any purpose other than those for which
                                    they were provided; and

                           iii)     permit the sale, transfer, use or
                                    exploitation of any Confidential Information
                                    or Trade Secrets by any third parties,
                                    including other employees of the Company who
                                    do not need to use or possess such
                                    Confidential Information or Trade Secrets to
                                    perform their duties to the Company.

                  c)       PROPRIETARY RIGHTS. The Employee will regard and
                           preserve as confidential all Trade Secrets and
                           Confidential Information pertaining to the
                           Company, that have been obtained by the Employee.
                           The Employee understands that the Company is the sole
                           owner of any and all proprietary rights in the
                           Confidential Information and Trade Secrets,
                           including, but not limited to, the right to use,
                           sell, license or transfer the Confidential
                           Information or Trade Secrets, and the right to make
                           changes in them and the uses thereof as the company
                           may from time to time determine. The Employee agrees
                           to assign to the Company, without further
                           consideration, all of his right, title, and interest
                           (throughout the United States and in all foreign
                           countries) free and clear of all liens and
                           encumbrances, in and to all Confidential Information
                           and Trade Secrets, which shall be the sole property
                           of the Company, whether or not patentable. Upon the
                           termination of this Agreement for any reason, the
                           Employee agrees to immediately return all
                           Confidential Information and Trade Secrets
                           information to the Company.

         19.      REASONABLENESS OF COVENANTS. The Company and the Employee
                  acknowledge and agree that the covenants and agreements
                  contained in this Agreement are reasonable in their geographic
                  scope, duration and content, and neither the Employee nor the
                  Company shall raise any issue of reasonableness of the
                  geographic scope, duration or content of such covenants, in
                  any proceeding to enforce such covenants or agreements.

         20.      ASSIGNMENT. The obligations under this Agreement may not be
                  assigned by any party hereto without the prior written consent
                  to all of the other parties.

         21.      GUARANTY. It is understood and acknowledged that the Guarantor
                  is the direct or indirect parent of the Company and has a
                  significant interest in ensuring that the Guarantor and the
                  Company receive the advise of Employee during the term of this
                  Agreement. As an inducement to the Employee to enter into this
                  Agreement, the Guarantor has agreed to guarantee, and does
                  hereby absolutely and unconditionally guarantee, the full and
                  prompt performance of all of the covenants, agreements, and
                  obligations of the Company under this Agreement.

                                        -8-
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         22.      NOTICES. All notices and other communications hereunder or in
                  connection herewith shall be deemed to have been duly given if
                  they are in writing and delivered personally or sent by
                  registered or certified mail, return receipt requested and
                  first class postage prepared to the addresses shown above,
                  unless notice of a change of address is given by one party to
                  the other parties hereto pursuant to the provisions of this
                  paragraph 22.

         23.      GOVERNING LAW. This Agreement shall be governed by and
                  construed under the laws of the State of Oklahoma.

         24.      ELECTION TO BECOME CONSULTANT. If Employee gives the Company
                  60 days prior notice that he wants to change his status from
                  an employee of the Company to a consultant to the Company, the
                  Company and Employee will amend this Agreement in the
                  appropriate manner to reflect that change in status.

         25.      MISCELLANEOUS.

                  a)       This Agreement shall constitute the only Agreement
                           between the Company and Employee relating to the
                           subject matter hereof, and no representations,
                           promises, understandings, or agreements, oral or
                           otherwise, not herein contained shall be of any force
                           or effect;

                  b)       No modification or waiver of any provision of this
                           Agreement shall be valid unless it is in writing
                           and signed by the party against whom it is sought
                           to be enforced. No waiver at any time of any
                           provision of this Agreement shall be deemed a
                           waiver of any other provision of this Agreement at
                           that time or a waiver of that or any other
                           provision at any other time; and

                  c)       The captions and headings contained herein are
                           solely for convenience and reference and do not
                           constitute a part of this Agreement.

         WITNESS WHEREOF, the parties have duly executed this Agreement
effective as of the day and year first above written.

                                    "COMPANY"

                                    FINTUBE TECHNOLOGIES, INC.,
                                      an Oklahoma corporation

                                    By: /s/ Rhys J. Best
                                        -----------------------------------
                                            Rhys J. Best, President

                                        -9-
<PAGE>

                                    "EMPLOYEE"

                                    /s/ Jerry E. Ryan
                                    ---------------------------------------
                                        Jerry E. Ryan

                                    "GUARANTOR"

                                    LONE STAR TECHNOLOGIES, INC.,
                                       a Delaware corporation

                                    By: /s/ Rhys J. Best
                                       ----------------------------------------
                                            Rhys J. Best, Chairman of the Board
                                            Chief Executive Officer and
                                            President

                                        -10-<PAGE>

                              EMPLOYMENT AGREEMENT

         This Employment Agreement (this "Agreement") is made as of January
1, 2000 by and between Fintube Technologies, Inc., an Oklahoma corporation
(the "Company") and Larry Sims (the "Employee").

         WHEREAS, Employee is an employee of Fintube Limited Partnership
("Fintube"), and Fintube and the Company have entered into an Asset Purchase
and Sale Agreement dated as of the date hereof (the "Purchase Agreement"),
pursuant to which Fintube has agreed to sell, and the Company has agreed to
purchase, substantially all of the assets of Fintube and its subsidiaries; and

         WHEREAS, as a condition to the consummation of the transactions
contemplated by the Purchase Agreement, the Company and Employee are required
to enter into this Agreement; and

         WHEREAS, Employee and the Company desire that Employee be employed
by the Company subject to the terms of this Agreement.

         NOW, THEREFORE, for good and valuable consideration, the receipt,
adequacy and sufficiency of which hereby are acknowledged, the parties hereto
agree as follows:

I.       EMPLOYMENT

         1.1      EMPLOYMENT.

                  (a) The Company hereby employs Employee as President and Chief
         Executive Officer of the Company and Employee accepts such employment
         pursuant to the terms of this Agreement. Employee will perform those
         duties, bear those responsibilities and have those authorities which
         are usual and customary for an employee who has the job description
         attached hereto as Attachment 1.

                  (b) Employee agrees to devote Employee's full time, and his
         best efforts, abilities, knowledge and experience to the faithful
         performance of the duties, responsibilities, and authorities referred
         to in subsection (a) above.

         1.2 TERM. Employment shall be for an initial term of two years (2)
years commencing on the date hereof and continuing until the second anniversary
of the date hereof. This Agreement is renewable, upon the mutual written
agreement of the parties hereto, for one or more additional consecutive one (1)
year terms. If this Agreement is not renewed at the end of the initial term or
any renewal term, this Agreement shall terminate, except that the provisions of
Section 3.2 and Articles IV, V and VI shall not terminate but shall survive such
termination of this Agreement.

<PAGE>

II.      COMPENSATION.

         2.1      COMPENSATION.

         For the first year of the initial term of this Agreement, the Company
shall pay Employee an annual base salary (the "Base Salary") of $205,000,
which equals the amount of 1999 annual salary of Employee with Employee's
previous employer plus the amount of Employee's raise. For the second year of
the initial term of this Agreement, the Company shall pay Employee a Base
Salary of an amount that is at least the total amount set forth in the
preceding sentence. For any renewal period, Employee shall be paid a Base
Salary as may be mutually agreed by the Company and Employee. In addition,
during the term of this Agreement, Employee shall be eligible to receive
bonus compensation in accordance with the Company's bonus policies ("Bonus
Compensation"). Payments of Base Salary and any bonus shall be subject to all
applicable federal and state withholding and payroll taxes.

         2.2 NON-COMPETITION CONSIDERATION. In consideration of Employee's
agreements set forth in Article V, the Company agrees to cause its parent
corporation, Lone Star Technologies, Inc., to grant to Employee on the date
hereof the employee stock options described in Attachment 2 hereto.

         2.3 BENEFITS. Employee will receive the same health and other
employee related benefits extended to other salaried employees of the
Company, as modified from time to time in the Company's discretion, and will
receive the benefits, if any, described in Attachment 3 hereto. The Company
will initially continue all employee benefit plans of Employee's previous
employer. During the term of this Agreement, the Company agrees that there
will not be a reduction in the overall benefits of Employee.

         2.4 EXPENSES. Employee will be reimbursed by the Company for
business expenses incurred for conducting business of the Company in
accordance with the Company's reimbursement policy, including submission of
required receipts and other documentation.

         2.5 VACATION AND SICK LEAVE. Employee will be entitled to annual
vacation and annual sick leave as calculated pursuant to the policies set
forth on Attachments 4(a) and 4(b), respectively, as well as customary
holidays in accordance with the policies of the Company. For purposes of
calculating the foregoing, Employee will be given credit for the duration of
Employee's employment by Employee's previous employer (Fintube or its
affiliated companies). In addition, Employee shall be entitled to 80 hours of
sick leave carried over from Employee's accrued but unused sick leave with
such previous employer.

III.     TERMINATION OF EMPLOYEE'S EMPLOYMENT

         3.1 TERMINATION. This Agreement and Employee's employment hereunder
may be terminated without any breach of this Agreement at any time during the
term hereof only by reason of and in accordance with the following provisions:

                                        -2-
<PAGE>

         (a) DEATH. If Employee dies during the term of this Agreement and
while in the employ of the Company, Employee's employment hereunder shall
automatically terminate as of the date of Employee's death, and the Company
shall have no further liability hereunder to Employee or Employee's estate
except to the extent set forth in Section 3.2 hereof.

         (b) DISABILITY. If, during the term of this Agreement, Employee
shall be prevented from performing Employee's duties hereunder by reason of
becoming totally disabled as hereinafter defined, then the Company may
terminate Employee's employment hereunder immediately upon written notice to
Employee without any further liability hereunder to Employee or Employee's
estate, except as set forth in Section 3.2 hereof. For purposes of this
Agreement, Employee shall be deemed to have become totally disabled when (i)
Employee receives "total disability benefits" under either (a) Social
Security, or (b) the Company's disability plan, if any, or (ii) the Company's
Board of Directors (the "Board"), based upon and consistent with the written
report of a qualified physician designated by the Board or its insurers,
shall have reasonably determined that Employee has become physically and/or
mentally unable to perform Employee's essential job functions on a permanent
basis after taking into consideration reasonable accommodations to enable
Employee to perform Employee's essential job functions.

         (c) TERMINATION BY THE COMPANY FOR CAUSE. Prior to the expiration of
the term of this Agreement, the Company may discharge Employee for Cause and
terminate Employee's employment hereunder immediately upon written notice to
Employee without any further liability hereunder to Employee or Employee's
estate, except to the extent set forth in Section 3.2 hereof. Such notice of
discharge shall describe with reasonable specificity the Cause or Causes for
the termination of Employee's employment, as well as the effective date of
termination of employment. "Cause" shall only mean (i) indictment of Employee
for a felony; (ii) theft or embezzlement by Employee of Company property;
(iii) any failure by Employee to substantially perform his material duties
under this Agreement (excluding nonperformance resulting from disability),
which failure is not cured within 30 days after written notice from the
President or Chairman of the Board of the Company specifying the
nonperformance and the requisite remedial action required of Employee, (iv)
any intentional misrepresentation by Employee of a material fact to, or
intentional concealment by Employee of a material fact from, the President or
a member of the Board, (v) any intentional act or omission of the Employee in
the scope of his employment (a) which results in the assessment of a criminal
penalty against the Employee or the Company, or (b) which in the reasonable
judgment of the President or Chairman of the Board of the Company results in
a material violation of any federal, state, local or foreign law or
regulation.

         (d) TERMINATION BY EMPLOYEE WITH NOTICE. Employee may terminate his
employment hereunder by resignation without liability to the Company at any
time upon sixty (60) days prior written notice to the Company, in which event
the Company shall have no further liability hereunder to the Employee except
to the extent set forth in Section 3.2 hereof.

                                        -3-
<PAGE>

         (e) TERMINATION BY EMPLOYEE FOR GOOD REASON. Employee may terminate
his employment hereunder without liability to the Company for Good Reason.
"Good Reason" shall mean only the following: (i) Employee has incurred a
substantial reduction in his authority or responsibility, which reduction in
authority or responsibility is not cured within 30 days after written notice
from Employee to the Board specifying the alleged reduction in authority or
responsibility of Employee; (ii) Employee's Base Salary has been reduced,
unless the reduction is 10% or less of Base Salary and is part of a general
reduction in the compensation of the Company's employees, (iii) any material
change in Employee's employment location; or (iv) any material breach of this
Agreement by the Company which is not cured within 30 days after written
notice from Employee to the Board specifying in detail the breach by the
Company.

         (f) TERMINATION OF AGREEMENT. Upon the termination of Employee's
employment hereunder, this Agreement shall terminate, except that the
provisions of Section 3.2 and Articles IV, V and VI shall not terminate but
shall survive the termination of this Agreement.

3.2      COMPENSATION UPON TERMINATION.

         (a) DEATH, DISABILITY OR CAUSE. If Employee's employment hereunder
is terminated pursuant to the provisions of either Section 3.1(a), 3.1(b),
3.1(c) or 3.1(d) hereof, the Company shall have no further obligation to
Employee or Employee's estate, except to pay to Employee or the estate of
Employee (i) any accrued, but unpaid, Base Salary, any authorized but
unreimbursed business expenses, and any vacation benefits which have accrued
as of the date of termination, but were then unpaid or unused, and (ii)
except if Employee's employment is terminated for Cause, any prorated, but
unpaid, Bonus Compensation based upon that part of the employment year for
which Employee was employed by the Company but without accelerating the bonus
payment date. Any amount due Employee under clause (i) of this Paragraph
shall be paid in a lump sum m cash within thirty (30) days after the
termination of the employment of Employee hereunder, and, any amount due
Employee under clause (ii) of this Paragraph shall be paid when payment of
such bonus would otherwise have been made if Employee's employment hereunder
had not been terminated.

         (b) GOOD REASON OR WITHOUT CAUSE. If Employee's employment hereunder
is terminated (i) by the Company other than pursuant to the provisions of
either Section 3.1(a), 3. 1(b) or 3.1(c), (ii) by Employee pursuant to
Section 3. 1(e), or (iii) as described in Section 3.2(c) hereof, the Company
shall have no further obligations to Employee, except Employee shall be
entitled to receive the amounts set forth in Section 3.2(a) and the Company
will continue to pay to the Employee his then current Base Salary through the
second anniversary (two years) of the termination of Employee's employment,
in accordance with the Company's regular payroll payment dates during said
period.

         (c) CHANGE IN CONTROL. In the event (i) Employee's employment hereunder
is terminated by the Company other than for "Cause" or (ii) Employee resigns for
"Good Reason", in either case at any time within a two-year period after the
occurrence of an

<PAGE>

"Change In Control" (all as defined in the Employment Retention Policy of
Lone Star Technologies, Inc. ("Lone Star"), a copy of which is attached
hereto as EXHIBIT A) with respect to the Company or Lone Star subsequent to
the date hereof, then Employee shall be entitled to receive an aggregate
amount equal to the mathematical product of twenty-four (24) times his
"Monthly Compensation" as defined in the Employment Retention Policy.

IV.      CONFIDENTIALITY

         4.1 PROHIBITIONS AGAINST USE. Employee acknowledges and agrees that
during the term of this Agreement he may have access to various trade secrets
and confidential business information ("Confidential Information") of the
Company, Lone Star and their affiliates. During and after the term of this
Agreement, Employee agrees that he shall use such Confidential Information
solely in connection with his obligations under this Agreement and shall
maintain in strictest confidence and shall not disclose any such Confidential
Information, directly or indirectly, or use such information in any other
way. Employee further agrees to take all reasonable steps necessary to
preserve and protect the Confidential Information. The provisions of this
Section 4.1 shall not apply to information known by Employee which is or
becomes generally available to the public other than as a result of a
disclosure by Employee.

V.       NON-COMPETITION

         5.1 AGREEMENT NOT TO COMPETE. Employee agrees that, for a period
from the date hereof until the date which is two (2) years after the date on
which Employee's employment by the Company terminates, he will not, directly
or indirectly engage in any of the following actions:

                  (a)      either as an employee, employer, consultant,
         agent, principal, partner, shareholder, corporate officer or
         director of any corporation, partnership or other entity, or in any
         other capacity, engage or participate in any business or activity that
         is in competition in any manner whatsoever with the business of the
         Company (including its subsidiaries) as conducted at any time during
         the term of this Agreement (the "Restricted Business") anywhere in
         North America. The Restricted Business shall be deemed to include
         without limitation the businesses of designing, manufacturing,
         processing, engineering and selling welded finned tubes, economizers,
         boiler tubes, extended surface inside diameter tubing, other products
         specifically marketed by the Company (including its subsidiaries) for
         use in heat recovery applications, steel coil slitting and storage,
         rolling steel rod to strip (oscillate wound products) (all such
         products, the "Restricted Products"), and selling and licensing
         machinery and technology related to the foregoing. However, nothing in
         this subsection (a) shall preclude Employee from holding less than 5%
         of the outstanding capital stock of any corporation required to file
         periodic reports with the Securities and Exchange Commission under
         Section 13 or 15(d) of the Securities Exchange Act of 1934, as amended,
         the securities of which are listed on any securities exchange, quoted
         on the National Association of Securities Dealers Automated Quotation
         System or traded in the over-the-counter market.

                  (b) whether for Employee's own account or for the account of
         any other individual, partnership, firm, corporation or other business
         organization, solicit, endeavor

                                        -5-
<PAGE>

         to entice away from the Company (or any of its affiliates), or
         otherwise interfere with the Company's relationship (or that of any
         of its affiliates) with any person who is employed by or otherwise
         engaged to perform services for the Company (or any of its affiliates)
         (including, but not limited to, any independent sales representatives
         or organizations), or solicit or make sales of any Restricted Product
         to any person, partnership, firm, corporation or other business
         organization that has purchased any Restricted Product from the Company
         during the term of this Agreement.

If the scope of the restrictions in this Section are determined by a court of
competent jurisdiction to be too broad to permit enforcement of such
restrictions to their full extent, then such restrictions shall be construed
or rewritten (blue-lined) so as to be enforceable to the maximum extent
permitted by law, and Employee hereby consents, to the extent he may lawfully
do so, to the judicial modification of the scope of such restrictions in any
proceeding brought to enforce them.

         5.2      SEVERANCE PAYMENT DEFAULT. If the Company is obligated to
make payments to Employee pursuant to Section 3.2(b) or 3.2(c) and there is a
Default in making those payments, Employee shall no longer be bound by the
agreements set forth in Section 5. 1. "Default" as used in the preceding
sentence shall mean: (i) the Company fails to make any payment due to
Employee in accordance with Section 3.2(b) or 3.2(c) and such failure
continues for 10 days after receipt by the Company of written notice from
Employee specifying the failure and setting forth Employee's address for
payment or (ii) the Company fails to make any payment due to Employee in
accordance with Section 3.2(b) and such failure results in the Employee
having delivered written notice of such failure of payment to the Company on
more than two separate occasions during any 12 month period.

VI.      ASSIGNMENT OF INVENTIONS

         6.1 INVENTIONS DEFINED. All rights to discoveries, inventions,
improvements, designs, work product and innovations (including without
limitation all data and records pertaining thereto) that relate to the
business of the Company and its affiliates, whether or not specifically
within Employee's duties or responsibilities and whether or not patentable,
copyrightable or reduced to writing, that Employee may discover, invent,
create or originate during the term of his employment hereunder, either alone
or with others and whether or not during working hours or by the use of
the.facilities of the Company or its affiliates ("Inventions"), shall be the
exclusive property of the- Company and its affiliates. Employee shall
promptly disclose all Inventions to the Company, shall execute at the request
of the Company any assignments or other documents the Company may deem
necessary to protect or perfect its rights therein, and shall assist the
Company and its affiliates, at the Company's expense, in obtaining, defending
and enforcing the rights of the Company and its affiliates therein. Employee
hereby appoints each of the Company and any of its affiliates as his
attorney-in-fact to execute on his behalf any assignments or other documents
deemed necessary by the Company and any of its affiliates to protect or
perfect its rights to any Inventions.

         6.2 COVENANT TO ASSIGN AND COOPERATE. Without limiting the
generality of the foregoing, Employee shall assign and transfer, and does
hereby assign and transfer, to the Company the worldwide right, title and
interest of Employee in the Inventions. Employee agrees that the Company may
file copyright registrations and apply for and receive patents (including
without limitation Letters

                                        -6-
<PAGE>

Patent in the United States) for the Inventions in the names of the Company
or any of its affiliates in such countries as may be determined solely by the
Company. Employee shall communicate to the Company all facts known to
Employee relating to the Inventions and shall cooperate with the Company's
reasonable requests in connection with vesting title to the Inventions and
related copyrights and patents exclusively in the Company and in connection
with obtaining, maintaining, protecting and enforcing the Company's exclusive
copyrights and patent rights in the Inventions.

         6.3 SUCCESSORS AND ASSIGNS. Employee's obligations under this
Article VI shall inure to the benefit of the Company and its successors and
assigns and shall survive the expiration of the term of this Agreement for
such time as may be necessary to protect the proprietary rights of the
Company in the Inventions.

         6.4 CONSIDERATION AND EXPENSES. Employee shall perform his
obligations under this Article VI at the Company's expense, but without any
additional or special compensation therefor.

VII.     MISCELLANEOUS

         7.1 REMEDIES. Employee acknowledges that the Company's remedy at law
for any breach or threatened breach by Employee of Article IV, Article V or
Article VII will be inadequate. Therefore, the Company shall be entitled to
seek injunctive and other equitable relief restraining Employee from
violating those provisions, in addition to any other remedies that may be
available to the Company under this Agreement or applicable law.

         7.2 AMENDMENT. This Agreement may be amended only in writing, signed
by both parties.

         7.3 ASSIGNMENT. This Agreement shall be binding upon, and shall
inure to the benefit of, the parties and their successors, assigns, heirs and
personal representatives and any entity with which the Company may merge or
consolidate or to which the Company may sell substantially all of its assets.

         7.4 NOTICES. Any notice required to be given under this Agreement
shall be in writing and shall be delivered either in person or by certified
or registered mail, return receipt requested. Any notice by mail shall be
addressed as follows or to such other addresses as either party may designate
in writing to- the other party from time to time:

           If to the Company:       Fintube Technologies, Inc.
                                    c/o Lone Star Technologies, Inc.
                                    15660 N. Dallas Parkway
                                    Suite 500
                                    Dallas, Texas 75248

                                        -7-
<PAGE>

                                    Attention: Robert F. Spears,
                                               Vice President, General
                                               Counsel and Secretary
                                    Facsimile: (972) 770-6471

           If to Employee, to:      Larry Sims
                                    4500 West 89th Street
                                    Tulsa, Oklahoma 74132

                                    And

                                    W. Kirk Turner, Esq.
                                    Newton, O'Connor, Turner & Auer
                                    15 E. 6th Street, Suite 2700
                                    Tulsa, Oklahoma 74119-3423

         7.5 WAIVER OF BREACH. Any waiver by either party of compliance with
any provision of this Agreement by the other parry shall not operate or be
construed as a waiver of any other provision of this Agreement, or of any
subsequent breach by such party of a provision of this Agreement.

         7.6 SEVERABILITY. If any one or more of the provisions (or portions
thereof) of this Agreement shall for any reason be held by a final
determination of a court of competent jurisdiction to be invalid, illegal, or
unenforceable in any respect, such invalidity, illegality or unenforceability
shall not affect any other provisions (or portions of the provisions) of this
Agreement, and the invalid, illegal or unenforceable provisions shall be
deemed replaced by a provision that is valid, legal and enforceable and that
comes closest to expressing the intention of the parties hereto.

         7.7 GOVERNING LAW. This Agreement shall be interpreted and enforced
in accordance with the laws of the State of Oklahoma, without giving effect
to conflict of law principles.

         7.8 ARBITRATION. Any controversy or claim arising out of or relating
to this Agreement or the breach of this Agreement or the breach of any
exhibits attached to this Agreement shall be settled by mediation, if
possible, and if not, by arbitration in accordance with the Commercial
Arbitration Rules of the American Arbitration Association, and a judgment
upon the award rendered by the arbitrator(s) may be entered in any court
having jurisdiction. Each party will bear its or his own expenses plus
one-half of the costs of mediation or arbitration; provided, however, that if
Employee is the prevailing party in an arbitration, the arbitrator(s) shall
have the authority to award Employee his costs and reasonable attorney's fees
which shall be paid by the Company. In the event the parties hereto agree
that it is necessary to litigate any dispute hereunder in a court, the
nonprevailing party shall pay the prevailing party its costs and reasonable
attorney's fees. Notwithstanding anything in this Section to the contrary,
the Company shall be entitled to seek an injunction or restraining order or
seek specific performance of this Agreement in a court of competent
jurisdiction to enforce the provisions of Article IV, Article V or Article VI.

                                        -8-
<PAGE>

         IN WITNESS WHEREOF, the parties have executed this Agreement
effective as of the date set forth above.

                                    FINTUBE TECHNOLOGIES, INC.

                                    By: /s/ Rhys J. Best
                                       ----------------------------------
                                             Name:  Rhys J. Best
                                             Title: Chairman of the Board

                                    Employee:

                                        /s/ Larry Sims
                                    ----------------------------------
                                            Larry Sims

                                        -9-
<PAGE>

                                   EXHIBIT "A"

              LONE STAR TECHNOLOGIES, INC. EMPLOYEE RETENTION PLAN

                                   [Attached.]

                                        -10-
<PAGE>

                              EMPLOYMENT RETENTION
                                     POLICY

         In order to attract and retain officers and key employees for Lone
Star Technologies, Inc. (the "Corporation") and its subsidiaries,
particularly in the event of a threat or the occurrence of a Change in
Control, the Board of Directors of the Corporation (the "Board") has adopted
the following Employment Retention Policy:

         If the employment of any Officer or key employee designated by the
Board or its Compensation Committee (the "Committee") is involuntarily
terminated without Cause or is voluntarily terminated with Good Reason within
two years after the occurrence of a change in Control of his Employer, his
Employer shall pay a lump sum, as determined by the Board or the Committee to
the Officer an amount that does not exceed twenty-four times his Monthly
Compensation or to the key employee in an amount that does not exceed twelve
times his Monthly Compensation. Each person designated by the Board or the
Committee will be covered by this Policy upon his entering into the letter
agreement in the form attached.

         The Board shall have the right to amend or terminate this Policy at
any time, but any such amendment or termination, whether adopted prior to or
after Change in Control, shall not adversely affect any person covered by
this Policy prior to such amendment or termination.

         The Corporation will request that the other Employers adopt this
Policy and will make reasonable efforts to require any successor to the
business or assets of any Employer expressly to assume and to agree to be
bound by this policy.

DEFINITIONS:

         "Cause" for termination of a person's employment means his illegal
conduct or gross misconduct that in either case is willful and results in
material damage to his Employer's business or reputation or his willful
failure or refusal to perform his duties or obligations to his Employer or to
comply in all material respects with the lawful directives of the Employer's
Chief Executive Officer or Board of Directors, provided that he has received
written notice from his Employer stating the nature of such failure or
refusal and has reasonable opportunity to correct the stated deficiency.

         "Change in Control" means, with respect to an Employer that is a
subsidiary of the Corporation,(i) any event that results in the Corporation
not controlling the Employer or owning all or substantially all of the
Employer's assets or (ii) any Change in Control of the Corporation.

<PAGE>

         "Change in Control" means, with respect to the Corporation, any of
the following:

         (i) any event affecting the Corporation that would be required to be
reported by a reporting company as a change in control pursuant to Regulation
14A under the Securities Exchange Act of 1934, as amended (the "Exchange
Act"');

         (ii) any "person" (as that term is used in Section 13(d) of the
Exchange Act) becomes the "beneficial owner" (as defined by Rule 13d-3 under
the Exchange Act), directly or indirectly, of securities of the Corporation
representing more than 50% of either the then outstanding shares of the
Corporation's Common Stock or the combined voting power of the Corporation's
then outstanding securities;

         (iii) at any time during any twenty-four month period, the
individuals who were serving on the Board at the beginning of that period or
who were nominated for election or were elected to the Board during that
period by a vote of at least two-thirds of such individuals still in office
shall cease to constitute a majority of the Board;

         (iv) any merger or consolidation of the Corporation with any other
corporation or any sale of all or substantially all of the assets of the
Corporation, other than a merger, consolidation or sale that results in the
voting securities of the Corporation outstanding immediately prior thereto
continuing to represent more than 50% of the combined voting power of the
voting securities of the Corporation or the surviving entity or any parent
thereof outstanding immediately thereafter; or

         (v)        the stockholders of the Corporation approve a plan of
complete liquidation or dissolution of the Corporation

         "Employer" is the Corporation or any corporation that is or becomes
a subsidiary of the Corporation and its respective successors and assigns.

         "Good Reason" with respect to the voluntary termination of a
person's employment means the occurrence, after a Change in Control, of (i)
any adverse change in his status, position, authority or responsibilities,
(ii) a reduction in his compensation, (iii) any material change in his
employment location or (iv) the failure or refusal of any successor to his
Employer to expressly assume his Employer's obligations under this Policy.

         "Monthly Compensation" is a person's salary and cash bonus paid
during the twelve months prior to the termination of his employment or, if
higher, his salary and cash bonus paid during the twelve months prior to the
Change in Control of his Employer, in each case computed as a monthly average.

         "Officer" is any person who is or becomes the President, Chief
Executive Officer, Treasurer, Controller, Secretary or any Vice President of
an Employer.

                                        2
<PAGE>

                                  ATTACHMENT 1

                     [Employee's job description attached.]

                                        -11-
<PAGE>

                   DIVISION FINTUBE CORPORATION PRESIDENT AND
                   CHIEF EXECUTIVE OFFICER RESPONSIBILITIES--
                                  LARRY J. SIMS
================================================================================

Works within company strategic and policy framework as set by Chairman of the
Board. Responsible for the overall profitability and development of the unit.
Implements business policies and plans through direct management of company
operating units. Is solely' responsible for the management of all operating
units. Provides support in the conceptual, strategic, and policy formulation
functions of the business.

PRIMARY RESPONSIBILITIES

         o          Originates company policies and plans and establishes
                    management and operating plans for each unit of the company
                    within his assigned responsibility to ensure achievement of
                    objectives.

         o          Plans, organizes, staffs, directs, or controls operating
                    units. Assures that each unit is properly organized,
                    staffed, and directed to perform its function effectively.

         o          Provides strategic information to Chairman of the Board
                    concerning the operations of the business units under his
                    management, their opportunities, and their growth and
                    development capacities.

         o          Participates with the Chairman of the Board in the
                    development of strategic plans and policies for the company.

         o          Exerts a consistent and effective management force for the
                    achievement of current and longer-term company plans.

         o          Creates new strategic plans to develop business units to
                    achieve new product market and business objectives.

         o          Responsible for the development of organization, personnel,
                    product technology, and market resources within his span of
                    control to facilitate future growth.

                           Division Fintube Corporation Organization 12/1999

________________________________________________________________________________
<PAGE>

                                  ATTACHMENT 2

         Lone Star will, under its 1985 Long-Term Incentive Plan, make an
initial grant of options (the "Options") covering an aggregate of 30,000
shares of common stock of Lone Star to the Employee. All of the Options will
be for a ten-year term and will have an exercise price equal to the fair
market value on the date of grant. One-half of the options (the "Employment
Options") will vest 25% per year over four years. The remaining one-half of
the Options (the "Performance Options") will vest (i) 50% on the 10th day
after completion of an audit of the Company's financial statements for the
year ended December 31, 2000 if such audit establishes the Company achieved
EBITDA of $21,100,000 for 2000 as set forth on page 91 of the Confidential
Memorandum of Fintube Limited Partnership dated February 1999 (the
"Projections") and (ii) 50% on the 10th day after completion of an audit of
the Company's financial statements for the year ended December 31, 2001 if
such audit establishes the Company achieved EBITDA of $26,700,000 for 2001 as
set forth in the Projections. If the Projections are not met by the specified
dates, the related Performance Options will lapse.

         However, Lone Star recognizes that the Projections are based on
assumptions and are subject to business uncertainties and changes in business
plans and expenditures. Therefore, notwithstanding the foregoing specific
EBITDA targets for 2000 and 2001, Lone Star reserves the right, in
consultation with the Company's management, to modify the vesting and lapse
provisions of the Performance Options if any of these uncertainties or
changes materialize or assumptions prove incorrect; provided, however, that
no such modification shall adversely affect the Employee.

                                        -12-
<PAGE>

                                  ATTACHMENT 3

         During the initial term of the Agreement, Employee will continue to
have the use of the automobile that Employee's previous employer had provided
to Employee and the Company will pay for that automobile's insurance, repairs
and tags.

         The Company will pay the regular monthly dues for one country club
that Employee's previous employer had been paying for Employee.

         The Company will pay the regular monthly dues for the Summit Club,
as Employee's previous employer has done.

                                        -13-
<PAGE>

                                 ATTACHMENT 4(a)

Vacation policy attached.

                                        -14-
<PAGE>

Policy Number: 4.0 (Employee Benefits and Services)
Date: 06/28/99

===============================================================================

         5.         The following table explains the vacation schedule.
<TABLE>
<CAPTION>
         ---------------------------------------------------------------------
          Length of Service
             Completed          Days Earned Per Month    Vacation Eligibility
         ---------------------------------------------------------------------
<S>                             <C>                      <C>
         One to Five Years               .83                     80 hours
         ---------------------------------------------------------------------
         Six Years                       .92                     85 hours
         ---------------------------------------------------------------------
         Seven Years                    1.00                     96 hours
         ---------------------------------------------------------------------
         Eighth Year                    1.08                     104 hours
         ---------------------------------------------------------------------
         Ninth Year                     1.16                     112 hours
         ---------------------------------------------------------------------
         Tenth Year                     1.25                     120 hours
         ---------------------------------------------------------------------

</TABLE>
         6.         VACATION SCHEDULING

                  a)       Vacations may be taken by separate weeks or by days.
                           The company prefers, however, that employees take one
                           vacation period during each 12 months of at least
                           five consecutive days.

                  b)       Employees may earn up to a maximum of 120 hours from
                           anniversary date to anniversary date. Up to 120 hours
                           may be carried over at the employee's anniversary
                           date. Hours in excess of 120 will be lost at the
                           employee's anniversary date.

                  c)       Selection of vacation dates is subject to approval of
                           the employee's supervisor. Preference in selection of
                           dates will be granted based on length of employee
                           service.

                  d)       If the company shuts down for business reasons or for
                           vacation, employees may be required to take their
                           vacation at that time. Reasonable advance notice is
                           to be given to each employee to allow scheduling of
                           vacation.

                  e)       If a company paid holiday falls during an employee's
                           vacation, the holiday will not be counted as vacation
                           taken. The employee may extend the vacation by one
                           day or take the vacation day at a later date.

                  f)       Each supervisor will maintain a department schedule
                           and record of the vacation time taken by each
                           employee.

                  g)       Vacation periods are to be scheduled and approved by
                           the employee's supervisor before becoming effective.

===============================================================================
Page 24
<PAGE>

                                 ATTACHMENT 4(b)

Sick leave policy attached.

                                        -15-
<PAGE>

                             Policy Number: 4.0 (Employee Benefits and Services)
                                                                   Data 06/28/99

===============================================================================
C.       SICK LEAVE

         1.       PURPOSE

                  a)       To provide income protection for employees who are
                           absent because of non-work related illness or
                           accident.

         2.       SCOPE

                  a)       This policy applies to all domestic regular full-time
                           employees who have completed their three-month
                           introductory period.

         3.       POLICY

                  a)       Amount of benefit. Employees may earn up to 40 hours
                           of paid sick leave during each one-year period of
                           continuous employment. Sick leave is earned at the
                           rate of .8 hours for each full 40 hours worked.
                           Employee's wage or salary will be continued for time
                           accrued in the employee's sick leave account
                           according to this schedule. All sick leave hours
                           accumulated in excess of 80 hours, through November
                           30, shall be paid to the employee by December 15 of
                           year. The number of sick leave days credited is not
                           intended to establish a guideline for acceptable
                           attendance.

         4.       ELIGIBILITY

                  a)       The employee is first eligible for the benefit upon
                           completion of the new employee introductory period.

                  b)       The company may at any time require an employee to
                           support a request for sick leave benefits with
                           medical certification of disability. Failure to
                           provide a note from a physician may lead to a denial
                           of benefits and possible corrective action.

                  c)       A medical certification will be required, If the
                           absence exceeds three consecutive workdays.

                  d)       Separation. Unused sick entitlement will be paid to
                           employees upon separation provided they have
                           completed at least six months of continuous service.
                           Pay will be computed based on the rate earned upon
                           separation

         5.       DEFINITION:

                  a)       "Sick leave benefit" is cash compensation paid at the
                           employee's regular rate of pay.

===============================================================================
                                                                        Page 27

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