Document:

Agreement and General Release

    Exhibit
      10.1

    

      AGREEMENT
        AND GENERAL RELEASE

      

      This
        Agreement and General Release (“Agreement”) is made and entered into this 29th
        day of August, 2005 by and between James Cowan (“Cowan”) and Maverick Tube
        Corporation (“Maverick”), herein collectively referred to as the
“Parties.”

      Recitals

      A. Cowan
        has
        been employed as Maverick’s Chief Operating Officer and President pursuant to a
        certain employment agreement dated February 2003 (the “Employment
        Agreement”).

      B. Cowan
        has
        informed Maverick of his intention to resign his position as President and
        Chief
        Operating Officer and to resign from all other offices held by him in Maverick
        and any of its subsidiaries (the “Resignation”).

      C. The
        Parties wish to reach an Agreement with respect to the terms of Cowan’s
        Resignation and wish to memorialize that Agreement herein.

      NOW,
        THEREFORE, in consideration of the mutual promises, covenants and agreements
        contained within this Agreement, the adequacy and sufficiency of which are
        hereby acknowledged and confessed, the Parties hereby agree as
        follows:

      1. Announcement
        of Resignation.
        Cowan
        has submitted his Resignation from his positions as President and Chief
        Operating Officer and from all other offices held by him in Maverick and
        any of
        its subsidiaries. Maverick will inform the public of the Resignation and
        its
        plan for succession in a press release that is expected to be issued following
        the close of the stock market on August 29, 2005. A copy of the relevant
        portion
        of the press release relating to this announcement is attached to this Agreement
        as Exhibit A. Except to the extent required by law or to the extent dictated
        by
        a material change in circumstances, as determined by Maverick, any subsequent
        press releases issued by Maverick regarding the reasons for the Resignation
        shall be substantially consistent with the contents of Exhibit A. Cowan shall
        cooperate with Maverick in the announcement of his Resignation.

      2. Cessation
        of Duties.
        Cowan’s
        Resignation from his positions as President and Chief Operating Officer and
        from
        all other offices held by him in Maverick and any of its subsidiaries became
        effective immediately upon the submission of the Resignation (that is, August
        29, 2005) (the “Resignation Date”). Cowan, accordingly, has ceased performing
        any and all duties related to those positions and offices immediately following
        the Resignation Date.

      3. Severance
        Payments and Benefits.
        Notwithstanding his Resignation, Maverick shall:

      
        	(a)  	
                pay
                  Cowan an amount equal to twice his annual base salary in one lump
                  sum of
                  $700,000 immediately upon the Effective Date of this
                  Agreement;

              

      

      
        	(b)  	
                pay
                  Cowan all earned time off including vacation pay, holiday pay,
                  and sick
                  leave pay, in one lump sum of $40,384.62 immediately upon the Effective
                  Date of this Agreement;

              

      

      
        	(c)  	
                pay
                  Cowan the amount of $160,000 in one lump sum in lieu of the 2005
                  annual
                  incentive bonus immediately upon the Effective Date of this
                  Agreement;

              

      

      
        	(d)  	
                pay
                  Cowan his deferred compensation totaling approximately $112,000
                  in one
                  lump sum immediately upon the Effective Date of this
                  Agreement;

              

      

      
        	(e)  	
                maintain
                  Cowan’s health insurance for a period of 12 months after the Resignation
                  Date on the same basis as that maintained for active participants
                  of
                  Maverick’s health plan and thereafter Cowan’s COBRA rights shall commence
                  and Maverick shall pay Cowan’s COBRA premiums for 6
                  months;

              

      

      
        	(f)  	
                transfer
                  the St. Alban’s club membership currently held by Maverick for Cowan into
                  Cowan’s name at no cost to either Cowan or Maverick. Cowan shall be
                  responsible for the payment of all dues and fees relating to said
                  memberships payable after the Effective
                  Date;

              

      

      
        	(g)  	
                maintain
                  D & O coverage for Cowan’s benefit at the same level as such coverage
                  is provided for active senior executives of Maverick for a period
                  of three
                  years beginning after the Effective
                  Date;

              

      

      
        	(h)  	
                provide
                  immediate vesting of 7,403 shares of restricted stock of Maverick
                  awarded
                  to Cowan on February 22, 2005;

              

      

      
        	(i)  	
                maintain
                  its obligations through the initial lease period entered into for
                  the
                  lease of the Infiniti M45 currently driven by
                  Cowan;

              

      

      
        	(j)  	
                provide
                  Cowan with outplacement services for a period of two years following
                  the
                  Resignation Date with an outplacement service of Cowan’s choice;
                  and

              

      

      
        	(k)  	
                provide
                  immediate vesting of 41,668 Maverick stock options granted to Cowan
                  on
                  February 18, 2003 at a strike price of $15.95. Cowan’s right to exercise
                  all of his vested stock options shall be extended to December 31,
                  2005.

              

      

      Cowan
        agrees that, aside from being offered as consideration for his entering into
        this Agreement, he is not otherwise entitled to the consideration recited
        in
        this Section 3. The benefits provided for in subsections (a), (b), (c), and
        (d)
        of this Section 3 shall be paid to Cowan not later than eight (8) days after
        the
        execution of this Agreement (the “Effective Date”).

      4. Confidential
        Information.
        At
        all
        times subsequent to the Resignation Date, Cowan shall not disclose to any
        Person
        (as hereinafter defined) or use for his own account or for the benefit of
        any
        third party any Confidential Information of Maverick (as hereinafter defined),
        whether or not such information is embodied in writing or other physical
        form,
        without Maverick’s written consent, unless and to the extent that (a) such
        disclosure is required by an order of a court having competent jurisdiction
        or
        under subpoena or other lawful order from a governmental agency, or (b) the
        Confidential Information is or becomes generally known to and available for
        use
        by the public other than as a result of the fault of Cowan or the fault of
        any
        other Person bound by a duty of confidentiality to Cowan. For purposes of
        this
        Agreement, the term “Person” shall refer to any individual, partnership,
        corporation, limited liability company, association, joint stock company,
        trust,
        joint venture, unincorporated organization or government entity. The term
        “Confidential Information” as used in this Agreement includes, but is not
        limited to, any information of a financial or business nature, as well as
        any
        past, present or potential customer, of Maverick, including, but not limited
        to:

      
        	(a)  	
                any
                  and all trade secrets concerning the business and affairs of Maverick,
                  data, know-how, formulae, compositions, processes, designs, sketches,
                  photographs, graphs, drawings, samples, inventions and ideas, past,
                  current and planned research and development, customer lists, current
                  and
                  anticipated customer requirements, price lists, market studies,
                  business
                  plans, database technologies, systems, structures, processes,
                  improvements, devices, discoveries, concepts and any other information,
                  however documented, of Maverick that is a trade secret within the
                  meaning
                  of applicable law;

              

      

      
        	(b)  	
                any
                  and all information concerning the business and affairs of Maverick,
                  including but not limited to, historical financial statements,
                  financial
                  projections and budgets, historical and projected sales, capital
                  spending
                  budgets and plans, the names and backgrounds of key personnel,
                  contractors, agents, suppliers and potential suppliers, personnel
                  training
                  and techniques and materials, purchasing methods and techniques,
                  and any
                  other information, however documented; that is deemed the confidential
                  or
                  proprietary information of Maverick;
                  and

              

      

      
        	(c)  	
                any
                  and all notes, analysis, compilations, studies, summaries and other
                  material prepared by or for Maverick containing or based, in whole
                  or in
                  part, upon any information included in the foregoing subparagraphs
                  (a) and
                  (b).

              

      

      5. Non-Compete
        and Non-Interference.
        Cowan
        acknowledges that: (i) the services which he rendered to Maverick were of
        a
        special, unique and intellectual character; (ii) Maverick’s business is
        international in scope and its products are marketed throughout the world,
        (iii)
        Maverick competes with other businesses that are or could be located in any
        part
        of the world; (iv) the provisions of this Section are reasonable and necessary
        to protect Maverick’s business. In consideration of the benefits provided
        herein, Cowan covenants that he will not, directly or indirectly: for a period
        of two years beginning on the Resignation Date (the “Post Employment Period”),
        engage or invest in, own, manage, operate, finance, control, or participate
        in
        the ownership, management, operation, financing, or control of, be employed
        by,
        associated with, or in any manner connected with, lend his name to or any
        similar name to, lend his credit to or render services or advice to, any
        business whose products or activities “compete to any significant extent” (as
        hereinafter defined) in whole or in part with the products or activities
        of
        Maverick anywhere in the United States of America (the phrase “compete to any
        significant extent” means that the products or activities constitute or are
        anticipated to constitute, as of the Resignation Date, 15% of the revenues
        of
        Maverick); provided however, that Cowan may purchase or otherwise acquire
        up to
        (but not more than) one percent of any class of securities of any enterprise
        (but without otherwise participating in the activities of such enterprise)
        if
        such securities are listed on any country’s national or regional securities
        exchange or have been registered under Section 12(g) of the United States
        Securities Exchange Act of 1934; whether for Cowan’s own account or for the
        account of any other person, at any time during the Post-Employment Period,
        solicit business of the same or similar type being carried out by Maverick,
        from
        any person known by Cowan to be a customer of Maverick, whether or not Cowan
        had
        personal contact with such person during and by reason of Cowan’s employment
        with Maverick, whether for Cowan’s own account or the account of any other
        person at any time during the Post-Employment Period, solicit, employ, or
        otherwise engage as an employee, independent contractor, or otherwise, any
        person who is or was an employee of Maverick at any time during Cowan’s
        employment or in any manner induce or attempt to induce any employee of Maverick
        to terminate his or her employment with Maverick; or at any time during the
        Post-Employment Period, interfere with Maverick’s relationship with any person
        including any person who at any time during Cowan’s employment was an employee,
        contractor, supplier, or customer of Maverick. For purposes of this Section
        5,
        the term “Post Employment Period” means the two-year period beginning on the
        Resignation Date. If any covenant of this Section 5 is held to be unreasonable,
        arbitrary, or against public policy, such covenant will be considered to
        be
        divisible with respect to scope, time, and geographic area, and such lesser
        scope, time, or geographic area as a court of competent jurisdiction may
        determine to be reasonable, not arbitrary, and not against public policy,
        will
        be effective, binding, and enforceable against Cowan. The period of time
        applicable to any covenant in this Section 5 will be extended by the duration
        of
        any violation by Cowan of such covenant. Cowan will, while the covenant under
        this Section 5 is in effect, give notice to Maverick, within 20 days after
        accepting any other employment from a company that competes to any significant
        extent, of the identity of such company. Maverick may notify such company
        that
        Cowan is bound by this Agreement and, at Maverick’s election, furnish such
        company with a copy of this Agreement or relevant portions thereof.

      6. Mutual Non-Disparagement.
        Unless
        otherwise required by law, compelled by legal process or government agencies,
        or
        except as he might engage in such communications with his attorneys or his
        spouse, Cowan shall not engage, nor encourage others to engage, in any
        conversations, comments, critiques, discussions, descriptions, or any other
        form
        of communication, whether oral or written or direct or indirect, with any
        third
        person or entity or the public generally that in any way disparages the
        character, integrity, honesty, hiring and employment practices, professional
        abilities, professional reputation, business practices, general reputation
        or
        business pursuits of Maverick. Except as may be communicated to active employees
        of Maverick or members of the Board of Directors of Maverick who need to
        be
        privy to such communications and only to the extent of such need, the officers
        and directors of Maverick shall not engage, nor encourage others to engage,
        in
        any conversations, comments, critiques, discussions, descriptions, or any
        other
        form of communication, whether oral or written or direct or indirect, with
        any
        third person or entity or the public generally that in any way disparages
        the
        character, integrity, honesty, employment, professional abilities, professional
        reputation, business practices, general reputation or business pursuits of
        Cowan.

      7. No
        Basis for Claims.
        Cowan
        warrants and represents that there is no actual or impending suits, claims
        or
        other actions against Maverick based upon, arising from or related to any
        personal conduct on his part, nor is there any basis for any such suit, claim
        or
        other action, other than actions or omissions within the business judgment
        of
        Cowan while acting in the course and scope of his employment as an officer
        or
        director of Maverick. Maverick warrants and represents that there is no actual
        or impending suits, claims or other actions against Cowan based upon, arising
        from or related to any conduct on Cowan’s part, nor is there any basis for any
        such suit, claim or other action.

      8. Mutual
        Release of Claims by Cowan and Maverick.
        In
        consideration of the payments provided by this Agreement and the stipulations
        and covenants made hereunder, Cowan, with the intent of binding himself and
        his
        successors, heirs, assigns, attorneys, and family members, hereby releases
        and
        forever discharges Maverick and its parents, affiliates, subsidiaries and
        other
        related companies and each of their officers, directors, agents, representatives
        and employees from and against any and all liabilities, claims, grievances,
        demands, charges, actions and causes of action whatsoever which first arose
        prior to and through the date on which this Agreement is executed, including
        but
        not limited to, any and all claims arising under or pursuant to The
        Age Discrimination in Employment Act of 1967 as amended, 29 U.S.C. §621
et
        seq.; Employee
        Retirement Income Security Act of 1974, as amended, 29 U.S.C. § 1001
et
        seq.;
        Title
        VII of the Civil Rights Act of 1964, as amended, 42 U.S.C., § 2000e et
        seq.;
        the
        Civil Rights Act of 1991, 42 U.S.C. § 1981(a) et
        seq.;
        the
        Americans with Disabilities Act of 1990, 42 U.S.C. § 12101 et
        seq.;
        the
        Missouri Human Rights Act, Mo. Rev. Stat. § 213.010 et
        seq.;
        the
        Missouri Service Letter Statute, Mo. Rev. Stat. § 290.140, and any and all other
        statutes or ordinances, any and all claims arising under or pursuant to the
        Employment Agreement between Maverick and Cowan, and any and all claims arising
        under or pursuant to common law. Cowan expressly waives the benefit of any
        statute or rule of law, which, if applied to this Agreement, would otherwise
        exclude from its binding effect any claims not known by Cowan to exist.
        Notwithstanding any provision herein to the contrary, Cowan is not releasing
        (i)
        any
        rights he may have to benefits in Maverick’s 401(k) plans or any welfare benefit
        plans of Maverick, (ii) any rights he may have to continuation of health
        care
        coverage under the Consolidated Omnibus Budget Reconciliation Act of 1985,
        as
        amended (“COBRA”), or under Section 4980B of the Internal Revenue Code or under
        ERISA Sections 601 through 609, (iii) Cowan’s rights under this Agreement, or
        (iv) Cowan’s rights to indemnification under any agreements or Maverick’s
        by-laws.

      In
        consideration of the promises and other consideration from Cowan described
        in
        this Agreement, Maverick (on behalf of itself and its officers, directors,
        parents, predecessors, successors, affiliates, executives, employees,
        representatives, agents, and assigns), fully and unconditionally releases
        Cowan
        from, and agrees not to sue Cowan regarding, any and all liability, claims,
        demands, actions, causes of action, suits, grievances, debts, sums of money,
        agreements, promises, damages, costs, expenses, and remedies of any type,
        whether known or unknown, arising before Maverick signed this Agreement
        relating, directly or indirectly, to Cowan’s employment with or separation of
        employment from Maverick. Maverick affirms that as of the time it is signing
        this Agreement, no action or proceeding covered hereunder is pending against
        Cowan. Maverick expressly
        waives the benefit of any statute or rule of law, which, if applied to this
        Agreement, would otherwise exclude from its binding effect any claims not
        known
        by Maverick to exist. Notwithstanding any provision herein to the contrary,
        Maverick is not releasing its rights under this Agreement.

      9. Legal
        Compliance.
        Notwithstanding anything contained within this Agreement to the contrary,
        Maverick shall not be precluded by any term or provision of this Agreement
        from
        taking action that, in the opinion of Maverick’s counsel, is required in order
        to comply with applicable law.

      10. Divisibility.
        If any
        one or more of the provisions contained in this Agreement shall for any reason
        be held to be excessively broad as to time, geographical scope, activity
        or
        subject, it shall be construed by limiting and reducing it so as to be
        enforceable to the extent compatible with applicable law.

      11. Severability.
        If any
        one or more provisions contained in this Agreement or any application thereof
        shall be invalid, illegal, or unenforceable in any respect, the validity,
        legality or enforceability of the remaining provisions of this Agreement
        and any
        other application thereof shall not in any way be affected or
        impaired.

      12. Acceptance.
        Cowan
        acknowledges that he has been given twenty-one (21) days from the date he
        receives this Agreement to consider, sign and accept it. Cowan further
        acknowledges and agrees that this period constitutes a reasonable amount
        of time
        during which to consider this Agreement.

      13. Revocation
        Period.
        For a
        period of seven (7) days following the execution of this Agreement, Cowan
        may
        revoke the Agreement and the Agreement shall not become effective or enforceable
        until this revocation period has expired.

      14. Attorney
        Consultation and Attorneys’ Fees.
        Cowan
        has
        the right to consult with an attorney with respect to this Agreement and
        should
        exercise that right. Maverick shall reimburse Cowan for reasonable attorneys’
        fees, costs and related expenses incurred in connection with the negotiation
        and
        drafting of this Agreement up to a maximum of $10,000. In connection with
        such
        reimbursement, Maverick shall pay to Cowan a Tax Gross-Up. A “Tax Gross-Up” with
        respect to any such payment means an amount payable by Maverick to Cowan
        such
        that, after payment of federal, state and local income taxes, payroll taxes,
        excise and other taxes applicable to Cowan on such amount, there remains
        a
        balance sufficient to pay all such taxes being reimbursed.

      15. No
        Other Inducement.
        Cowan
        represents and warrants that no promise or inducement has been offered or
        made
        except as set forth herein and that this Agreement is executed without reliance
        upon any oral statement or oral representation by Maverick or any person
        acting
        on its behalf.

      16. Knowing
        and Voluntary Waiver.
        Subject
        to the applicable provisions of this Agreement, Cowan expressly acknowledges
        that the waiver of his claims, including but not limited to, claims under
        The
        Age Discrimination in Employment Act of 1967 as amended, 29 U.S.C. §621
et
        seq.; Employee
        Retirement Income Security Act of 1974, as amended, 29 U.S.C. § 1001
et
        seq.;
        Title
        VII of the Civil Rights Act of 1964, as amended, 42 U.S.C., § 2000e et
        seq.;
        the
        Civil Rights Act of 1991, 42 U.S.C. § 1981(a) et
        seq.;
        the
        Americans with Disabilities Act of 1990, 42 U.S.C. § 12101 et
        seq.;
        the
        Missouri Human Rights Act, Mo. Rev. Stat. § 213.010 et
        seq.;
        the
        Missouri Service Letter Statute, Mo. Rev. Stat. § 290.140; and any and all other
        statutes or ordinances, and any and all claims arising under or pursuant
        to
        common law, is knowing and voluntary and that this waiver is part of this
        Agreement. Cowan also expressly acknowledges that the waiver and the Agreement
        have been written in a manner calculated to be, and which is, understood
        by
        Cowan, and Cowan is not waiving rights for claims first arising under the
        Age
        Discrimination in Employment Act after the date this Agreement is signed
        and
        that the rights and claims that he is waiving are in exchange for consideration
        to which he is not otherwise entitled.

      17. Miscellaneous
        Provisions.

      (a) Non-Waiver.
        One
        Party’s failure to exercise a right provided for under this Agreement in the
        event of a breach by the other Party of any term hereof shall not be construed
        as a waiver of such breach or prevent the Party from thereafter enforcing
        strict
        compliance with any and all terms of this Agreement.

      (b) Binding
        Effect.
        This
        Agreement is binding upon and shall inure to the benefit of Maverick, its
        successors and assigns and Cowan, Cowan’s heirs, executors, administrators and
        legal representatives.

      (c) Assignment.
        This
        Agreement may be assigned by Maverick (but not Cowan) and Cowan’s successors and
        assigns. Cowan consents to any such assignment.

      (d) Modification.
        This
        Agreement sets forth the full and complete understanding of the Parties,
        and any
        prior agreements, oral or written, regarding the matters contained within
        this
        Agreement are null and void. Any amendments to this Agreement must be in
        writing
        and signed by Maverick’s Chief Executive Officer and Cowan.

      (e) Disclosure
        of Existence of Agreement.
        In
        order to preserve Maverick’s rights under this Agreement, Maverick may advise
        any third party with whom Cowan may consider establishing a relationship,
        including, but not limited to, an employment or independent contractor
        relationship, of the existence of this Agreement and of its terms and Maverick
        shall have no liability for so doing.

      (f) Governing
        Law.
        This
        Agreement shall be deemed for all purposes to have been made in the State
        of
        Missouri and shall be governed by and construed in accordance with the laws
        of
        the State of Missouri, notwithstanding either the place of execution of this
        Agreement, nor the performance of any acts in connection with or under this
        Agreement in any other jurisdiction.

      (g) Arbitration.
        The
        Parties irrevocably agree that any dispute, controversy, or claim arising
        out of
        or in relation to this Agreement, shall be submitted to the exclusive
        jurisdiction of, and shall be settled by final and binding arbitration in
        accordance with the American Arbitration Rules and Procedures to which the
        Parties hereby submit themselves, in accordance with the laws of the State
        of
        Missouri. The arbitration shall be heard and determined by one (1) arbitrator
        selected by agreement by the Parties, and if the Parties cannot agree, the
        arbitrator shall be appointed by the American Arbitration Association from
        a
        list of candidates submitted by the Parties. The Parties shall use their
        reasonable best efforts to agree to identify an arbitrator by side letter
        agreement within eight days of the Resignation Date. The place of arbitration
        shall be a location in the St. Louis, Missouri metropolitan area. The Parties
        hereby waive their right to a jury trial in any litigation with respect to
        this
        Agreement.

      (h) Opportunity
        to Review.  Cowan
        acknowledges that he has been given adequate time to review this Agreement,
        that
        he has in fact reviewed this Agreement with an attorney who negotiated
        provisions of this Agreement on his behalf, and that he
        understands the meaning and effect of each paragraph of this
        Agreement.

      (i) Right
        to Revoke. Cowan
        acknowledges that he has the right to revoke this Agreement up to seven (7)
        days
        after its execution.

      (j) Entire
        Agreement. This
        Agreement shall constitute the entire agreement between the Parties and shall
        supersede any and all previous agreements between the Parties or between
        Cowan
        and any of Maverick, its subsidiaries, or its affiliates.

      18. No
        Mitigation.
        Following
        the Resignation Date, Cowan shall have no obligation or duty to seek subsequent
        employment or engagement as an employee (including self-employment) or as
        a
        consultant or otherwise mitigate Maverick’s obligations hereunder, nor shall the
        payments provided by this Agreement be reduced by the compensation earned
        by
        Cowan as an employee or consultant from any subsequent employment or consulting
        arrangement.

      19. Authorization.
        Maverick represents and warrants that it has taken all corporate action
        necessary to approve and authorize execution and implementation of this
        Agreement.

      20. Advice.
        Cowan
        expressly agrees that: (1) he has carefully read and understands this Agreement;
        (2) he has been given twenty-one (21) days within which to consider this
        Agreement; (3) he has been advised to consult with an attorney regarding
        this
        Agreement, its meaning and application; (4) he has been advised that he has
        seven (7) days to reconsider the Agreement after he executes it and that
        he may
        rescind it any time within those seven days; and (5) he is signing this
        Agreement knowingly and voluntarily of his own free will and with the intent
        of
        being bound by it.

      21. COWAN
        HEREBY ACKNOWLEDGES THAT HE HAS READ THIS AGREEMENT CONSISTING OF 16 PAGES
        AND
        21 NUMBERED SECTIONS; THAT HE HAS HAD A REASONABLE PERIOD FOR DELIBERATION
        AND
        FULLY UNDERSTANDS AND KNOWINGLY ACCEPTS ALL OF ITS TERMS; AND THAT HE HAS
        HAD AN
        ADEQUATE OPPORTUNITY TO DISCUSS THIS DOCUMENT WITH AN ATTORNEY AND HAS DONE
        SO
        OR HAS VOLUNTARILY ELECTED NOT TO DO SO; AND THAT NO ATTORNEY OR COUNSEL
        TO THE
        CONSULTANT IS ENTITLED TO ANY FEE OR COMPENSATION FROM EMPLOYER AS A RESULT
        OF
        OR IN CONNECTION WITH THIS AGREEMENT, THE NEGOTIATION OF THIS AGREEMENT OR
        ANY
        CLAIM HEREIN RELEASED.

      

      IN
        WITNESS WHEREOF, Cowan and Maverick have executed this Agreement as of the
        date
        set forth above.

      

      
        	
                JAMES
                  COWAN

              	 	
                MAVERICK
                  TUBE CORPORATION

              
	 	 	 
	 	 	 
	 /s/
                James Cowan	 	
                By

              	 /s/
                C. Robert Bunch
	 	 	 
	 	 	
                Name

              	 C.
                Robert Bunch
	 	 	 
	 	 	
                Title

              	 Chief
                Executive
                Officer

      

      
 

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

       

      Exhibit
        A

       

      NEWS
        RELEASE

        

        

        

        For
          further information contact 

        Richard
          Preckel, 636-733-1600

        

        

        

        MAVERICK
          TUBE CORPORATION ANNOUNCES THE RESIGNATION OF ITS PRESIDENT AND CHIEF OPERATING
          OFFICER

        

        

        ST.
          LOUIS, August 29, 2005 - Maverick Tube Corporation (NYSE:MVK) announced
          today it
          has accepted the resignation of James Cowan, 47, its President and Chief
          Operating Officer, effective today. C. Robert Bunch, the Company’s Chief
          Executive Officer, will assume the title of President. The Company has
          no
          current plans to fill the position of chief operating officer.

        

        Mr.
          Bunch
          commented, “During his nearly two and one-half years here, Jim made substantial
          contributions to the Company and he will be missed. We wish him well in
          his
          future endeavors.”

        

        

        

        

        

        

        Maverick
          Tube Corporation is a St. Louis, Missouri, based manufacturer of tubular
          products in the energy industry for exploration, production, and transmission,
          as well as industrial tubing products (steel electrical conduit, HSS, standard
          pipe, pipe piling, and mechanical tubing) used in various
          applications.

        

        This
          news
          release may contain forward-looking information that is based on assumptions
          that are subject to numerous business risks, many of which are beyond the
          control of the Company. There is no assurance that such assumptions will
          prove
          to be accurate. Actual results may differ from these forward-looking statements
          due to numerous factors, including those described under “Risk Factors” and
          elsewhere in Maverick’s Form 10-K for its year ended December 31,
          2004.<PAGE>
                                                                    Exhibit 10.1

                              EMPLOYMENT AGREEMENT
                              --------------------

     On August 22, 2005, Advanced Materials Group, Inc., a Nevada corporation
("Employer"), and William G. Mortensen ("Employee") agree as follows:

     1. TERM. The Company agrees to employ Employee, and Employee agrees to
serve, on the terms and conditions of this Agreement, for a period commencing on
the date hereof and continuing until terminated by either party. Notwithstanding
any provision to the contrary herein, employment pursuant to this contract is
"at will" and may be terminated at any time and for any reason.

     2. DUTIES. Employee agrees to serve Employer as its President and Chief
Financial Officer or in such other capacities as may be requested from time to
time by the Board of Directors of the Company ("Board"). During the term of this
Agreement, Employee will devote his full time and exclusive attention to, and
use his best efforts to advance, the business and welfare of Employer. During
the term of this Agreement, Employee will not engage in any other employment
activities for any direct or indirect remuneration without the prior written
consent of Employer. Employee shall not be required to relocate from the Dallas,
Texas, metropolitan area, but agrees to undertake all reasonable travel required
by Employer to be conducted in connection with the performance of his duties.

     3. SALARY AND BENEFITS.

          3.1 BASE SALARY. Employer shall pay Employee a salary at the rate of
$120,000 per year, or such greater amount as may be established by the Board,
payable in appropriate installments to conform with the regular payroll dates
for salaried personnel of Employer and subject to payroll deductions as may be
necessary or customary in respect of salaried personnel.

          3.2 INCENTIVE COMPENSATION. In addition to the base salary to which
Employee is entitled pursuant to Section 3.1, Employer will pay to Employee
additional compensation (a "Bonus") in accordance with the following terms and
conditions:

          (a) For the fourth quarter of Employer's fiscal year 2005, Employer
     shall pay Employee a Bonus equal to 5% of Employer's income from continuing
     operations before income taxes, which Bonus shall be paid within 72 hours
     after completion of unaudited financial statements for both the fourth
     quarter and fiscal year 2005, and acceptance thereof by Employer's Audit
     Committee. Upon completion of audited financial statements for fiscal year
     2005, the Bonus for the fourth quarter of Employer's fiscal year 2005 shall
     be recomputed based on audited numbers, and any over- or under-payment of
     the Bonus shall be subtracted from, or added to, the next Bonus(es) paid to
     Employee.

          (b) Exhibit A as attached hereto and initialed by Employee and by
     Employer's Chairman shall be in effect through Employer's fiscal year 2006
     only. The amount of the quarterly Bonus shall be determined as set forth on
     Exhibit A and paid as set forth below:

                                       1

<PAGE>

               (i) Until such time as Employer becomes current in its SEC
          reporting, Employer shall pay Employee's Bonus on a quarterly basis
          within 72 hours after completion of unaudited financial statements for
          each fiscal quarter and acceptance thereof by Employer's Audit
          Committee;

               (ii) Upon filing of Employer's Form 10-Q with respect to any
          fiscal quarter during fiscal year 2006, or upon completion of audited
          financial statements for fiscal year 2006 (regardless of whether
          Employer has filed a Form 10-K with respect thereto), Employee's Bonus
          for each fiscal quarter reflected in such Form 10-Q or audited
          financial statements shall be shall be recomputed based on the numbers
          reflected therein, and any over- or under-payment of the Bonus shall
          be subtracted from, or added to, the next Bonus(es) paid to Employee;

               (iii) Once Employer has become current in its SEC reporting,
          Employer shall pay Employee's Bonus on a quarterly basis within 72
          hours after filing of Employer's Form 10-Q or Form 10-K, as the case
          may be, with respect to the previous fiscal quarter.

               (iv) The Bonus for the each of the first three fiscal quarters
          shall be deemed earned and shall be paid in an amount equal to 50% of
          the amount calculated, on an annualized basis, using the formula set
          forth on Exhibit A, as derived from Employer's unaudited financial
          statements (until Employer is current in its SEC reporting) or Form
          10-Q (once Employer is current in its SEC reporting). The Bonus for
          the final quarter of each fiscal year shall be deemed earned and shall
          be paid in an amount equal to 100% of the amount calculated using the
          formula set forth on Exhibit A, as derived from Employer's audited
          financial statements (until Employer is current in its SEC reporting)
          or Form 10-K (once Employer is current in its SEC reporting). If
          Employee's employment is terminated for any reason other than "good
          cause" (as defined in Section 5), Employee shall be entitled to
          receive, at the times enumerated in herein, a pro rated Bonus
          reflecting the portion of the fiscal year until the date of
          termination (including, after the end of the then current fiscal year
          as called for in this Section 3.2(b), any amount not yet paid because
          of the hold backs described herein).

          (c) For fiscal years commencing after November 2006, Employer's
     compensation committee shall establish a new Bonus plan, if any, at least
     30 days prior to end of the then current fiscal year, which shall be
     reflected by a revised Exhibit A to be attached hereto and initialed and
     dated by Employee and Employer's compensation committee chairman.

          3.3 VACATIONS. Employee shall be entitled to paid vacation on the same
terms as other salaried employees of Employer.

                                       2

<PAGE>

          3.4 MEDICAL INSURANCE AND OTHER BENEFITS. During the term of this
Agreement Employer shall furnish Employee with the same medical and hospital
insurance and other benefits furnished to other salaried employees of Employer.

     4. CONFIDENTIAL INFORMATION AND RESTRICTED ACTIVITIES.

          4.1 NONDISCLOSURE AND NONUSE OF CONFIDENTIAL INFORMATION. Employee
acknowledges that Employer continually develops Confidential Information (as
defined in Section 4.7), that Employee may develop Confidential Information for
Employer and that Employee may learn of Confidential Information during the
course of his employment. Employee will comply with Employer's policies and
procedures for protecting Confidential Information and, except as required by
the nature of his duties, Employee will never, directly or indirectly, use or
disclose any Confidential Information without the prior written consent of a
majority of the Board. Employee understands that this restriction will continue
to apply after his employment terminates.

          4.2 USE AND RETURN OF PROPERTY AND DOCUMENTS. Employee will protect
the integrity of Confidential Information and keep confidential all documents,
customer lists, records of research, proposals, reports, memoranda, computer
software and programming, financial information, and other materials
("Documents") including any copies thereof, in which Confidential Information
may be contained. Employee will not copy any Documents except as required by the
nature of his duties. Employee will not remove any Documents or copies from
Employer's premises unless authorized by the Board. Employee will return to
Employer immediately after his employment terminates all Documents and copies
and any other property of Employer then in his possession or control.

          4.3 ASSIGNMENTS OF RIGHTS. Employee will promptly and fully disclose
all Company Property (as defined in Section 4.7) to Employer. Employee hereby
assigns and agrees to assign to Employer (or as otherwise directed by Employer)
his full right, title and interest to all Company Property. Employee agrees to
execute any and all applications for domestic and foreign patents, copyrights or
other proprietary rights and do such other acts (including, among others, the
execution and delivery of instruments of further assurance or confirmation)
requested by Employer to assign the Company Property to Employer and to permit
Employer to enforce any patents, copyrights or other proprietary rights in the
Company Property. Employee will not charge Employer for his time spent in
complying with these obligations. All copyrightable works that Employee creates
shall be considered "works made for hire." Employee acknowledges that he has
read and understands California Labor Code Section 2870, which reads as follows:

          (a) Any provision in an employment agreement which provides that an
     employee shall assign, or offer to assign, any of his or her rights in an
     invention to his or her employer shall not apply to an invention that the
     employee developed entirely on his or her own time without using the
     employer's equipment, supplies, facilities or trade secret information
     except for those inventions that either:

                                       3

<PAGE>

               (i) Relate at the time of conception or reduction to practice of
          the invention to the employer's business, or actual or demonstrably
          anticipated research or development of the employer.

               (ii) Result from any work performed by the employee for the
          employer.

          (b) To the extent a provision in an employment agreement purports to
     require an employee to assign an invention otherwise excluded from being
     required to BE assigned under subdivision (a), the provision is against the
     public policy of this state and is unenforceable.

Employee understands that his obligations under this Agreement do not apply to
an invention that qualifies fully under the provisions of Section 2870.

          4.4 NON-RECRUITMENT. For a period of three years after his employment
with Employer terminates, Employee will not, and will not assist anyone else to,
hire any employee of Employer or seek to persuade any employee of Employer to
discontinue employment or to become employed in any business directly or
indirectly competitive with Employer's business, nor seek to persuade any
independent contractor or supplier of Employer to discontinue its relationship
or violate any agreement with Employer.

          4.5 RESTRICTED ACTIVITIES. Employee agrees that some restrictions on
his activities during and after his employment are necessary to protect the
goodwill, Confidential Information and other legitimate interests of Employer.
While Employee is employed by Employer and for a period of three years after his
employment terminates Employee will not compete, directly or indirectly, with
Employer in any jurisdiction in which Employer does business, whether as an
employee, consultant, agent, partner, principal, investor or otherwise, if such
business involves any use by Employee of any Confidential Information. Further,
but without limiting the foregoing, Employee agrees, while employed by Employer
and for a period of three years after his employment terminates, not to engage
in any "restricted activity" as defined in the following sentence. "Restricted
activity" as used in this Section 4.5 shall mean accepting employment or a
consulting position with (a) any person who is, or at any time within one year
prior to Employee's termination has been, a customer of Employer, or (b) Robert
E. Delk or any of his affiliates. The foregoing restrictions shall not prevent
Employee's owning 1% or less of the equity securities of any publicly traded
company.

          4.6 NOTIFICATION REQUIREMENT. Until three months after the period set
forth in Section 4.5, Employee will notify Employer in writing of any change in
his address and of each new job or other business activity in which he plans to
engage, at least 30 days prior to beginning such job or activity. The notice
shall state the name and address of any new employer and the nature of
Employee's position.

          4.7 DEFINITIONS: For the purposes of this Agreement, the following
definitions shall apply:

                                       4

<PAGE>

               "Company Property" means developments, methods of doing business,
compositions, works, concepts and ideas (whether or not patentable or
copyrightable or constituting trade secrets) conceived, made, created, developed
or reduced to writing or practice by Employee (whether alone or with others, and
whether or not during normal business hours or on or off Employer's premises)
during Employee's employment that relate to either the services provided by,
business of, or any prospective activity of, Employer known to Employee as a
result of his employment.

               "Confidential Information" means any and all information of
Employer which is not generally known in the foam products industry or that is
not generally known by others with whom Employer does or plans to compete or do
business. Confidential Information includes, without limitation, information
relating to (i) Employer's development, research and marketing activities, (ii)
Employer's financial statements and strategic plans, (iii) the identity and
special needs of Employer's customers and (iv) people and organizations with
whom Employer has business relationships and those relationships. Confidential
Information also includes such information that Employer may receive or have
received belonging to customers or others who do business with Employer and,
except to the extent disclosed by Employer on a nonconfidential basis, the
Company Property.

          4.8 REMEDIES. Employee acknowledges that, were he to breach the
provisions of this Section 4, the harm to Employer would be irreparable.
Employee therefore agrees that, in addition to damages and attorneys' fees,
Employer shall be entitled to obtain (and Employee will not contest) preliminary
and permanent injunctive relief against any such breach, without having to post
a bond.

          4.9 ENFORCEABILITY OF COVENANTS. The parties intend that the covenants
and agreements contained in this Section 4 shall be deemed to include a series
of separate covenants and agreements, one for each and every jurisdiction in
which Employer does business with respect to the business described in Section
4.5. If, in any judicial proceeding, a court refuses to enforce all of the
separate covenants deemed included in the action, then the unenforceable
covenants shall be deemed eliminated from the provisions hereof for the purposes
of the proceeding to the extent necessary to permit the remaining separate
covenants to be enforced in the proceeding.

     5. SEVERANCE. If Employee's employment with Employer is terminated for any
reason other than Employee's death or permanent disability (which, for purposes
hereof, shall have the same meaning as in Employer's disability insurance policy
or, in the absence of such a policy, the continuous loss of one-half or more of
the time spent by Employee in the usual daily performance of his duties as a
result of physical or mental illness for a period in excess of 90 consecutive
days), or "good cause" (as defined below), then Employer shall pay to Employee,
in a lump sum, an amount equal to six months' (if the termination occurs prior
to August 22, 2006) or three months' (if the termination occurs on August 22,
2006 or thereafter) base salary (as in effect on the date of termination). The
term "good cause" is defined as any one or more of the following occurrences:

          (a) Employee's breach of any of the covenants contained in Section 4;

                                       5

<PAGE>

          (b) Employee's conviction by, or entry of a plea of guilty or nolo
     contendere in, a court of competent and final jurisdiction for any crime
     involving moral turpitude or punishable by imprisonment in the jurisdiction
     involved;

          (c) Employee's commission of an act of fraud, whether prior to or
     subsequent to the date hereof upon Employer;

          (d) Employee's continuing repeated willful failure or refusal to
     perform his duties as required by this Agreement, provided, that
     termination of Employee's employment pursuant to this paragraph 5(d) shall
     not constitute valid termination for cause unless Employee shall have first
     received written notice from the President of Employer stating with
     specificity the nature of the failure or refusal and affording Employee at
     least ten days to correct the act or omission complained of;

          (e) Gross negligence, insubordination, material violation by Employee
     of any duty of loyalty to Employer or any other material misconduct on the
     part of Employee, provided that termination of Employee's employment
     pursuant to this paragraph 5(e) shall not constitute valid termination for
     cause unless Employee has first received written notice from the President
     of Employer stating with specificity the nature of the failure or refusal
     and affording Employee at least ten days to correct the act or omission
     complained of;

          (f) Employee's commission of any act that is detrimental to Employer's
     business or goodwill; or

          (g) Employee's poor performance or failure to meet corporate
     objectives.

     6. EXPENSES. Employer will pay or reimburse Employee for the reasonable
travel, entertainment or other expenses as he incurs at the request of Employer
during the term of this Agreement in connection with the performance of his
duties hereunder. Employee shall furnish Employer with such evidence that the
expenses were incurred as Employer may from time to time reasonably require or
request.

     7. PARTIAL DISABILITY OF EMPLOYEE. If Employee becomes disabled by reason
of illness or other incapacity extending for a period of more than 12
consecutive weeks during which Employee is unable to perform his duties
hereunder on a full-time basis but is able to perform his duties hereunder on a
part-time basis, all amounts otherwise payable to Employee shall be
proportionately reduced with respect to the period commencing at the end of the
12 week period to reflect the extent to which Employee's working time is reduced
below a level which would result in Employee working 1,920 hours per year. In
determining when Employee becomes disabled, the same criteria shall be
applicable as are used in the disability insurance policy Employer maintains for
its employees.

     8. MISCELLANEOUS.

          8.1 MODIFICATION AND WAIVER OF BREACH. No waiver or modification of
this Agreement shall be binding unless it is in writing signed by the parties
hereto. No waiver of a breach hereof shall be deemed to constitute a waiver of a
future breach, whether of a similar or dissimilar nature.

                                       6

<PAGE>

          8.2 ASSIGNMENT. The rights of Employer under this Agreement may,
without the consent of Employee, be assigned by Employer, in its sole and
unfettered discretion (a) to any person, firm, corporation, or other business
entity which at any time, whether by purchase, merger, or otherwise, directly or
indirectly, acquires all or substantially all of the assets or business of
Employer, or (b) to any subsidiary or affiliate of Employer, or any transferee,
whether by purchase, merger or otherwise, which directly or indirectly acquires
all or substantially all of the assets of Employer or the subsidiary or
affiliate.

          8.3 NOTICES. All notices and other communications required or
permitted under this Agreement shall be in writing, served personally on, or
mailed by certified or registered United States mail to, the party to be charged
with receipt thereof. Notices and other communications served by mail shall be
deemed given hereunder 72 hours after deposit of such notice or communication in
the United States Post Office as certified or registered mail with postage
prepaid and duly addressed to whom such notice or communication is to be given,
in the case of (a) Employer, 20211 South Susana Road, Rancho Dominguez,
California 90221, Attention: Chairman, or (b) Employee, 7534 Chinaberry Ln.,
Frisco, TX, 75034. Any such party may change that party's address for
purposes of this Section 8.3 by giving to the party intended to be bound
thereby, in the manner provided herein, a written notice of the change.

          8.4 COUNTERPARTS. This instrument may be executed in one or more
counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same Agreement.

          8.5 CONSTRUCTION OF AGREEMENT. This Agreement shall be construed in
accordance with, and governed by, the laws of the State of California applicable
to agreements executed and to be performed in California.

          8.6 COMPLETE AGREEMENT. This Agreement contains the entire agreement
between the parties hereto with respect to the transactions contemplated by this
Agreement and supersedes all previous oral and written and all contemporaneous
oral negotiations, commitments, writings, and understandings.

          8.7 NON-TRANSFERABILITY OF INTEREST. None of the rights of Employee to
receive any form of compensation payable pursuant to this Agreement shall be
assignable or transferable except through a testamentary disposition or by the
laws of descent and distribution upon the death of Employee. Any attempted
assignment, transfer, conveyance, or other disposition (other than as noted
above) of any interest in the rights of Employee to receive any form of
compensation to be made by Employer pursuant to this Agreement shall be void.

                                       7

<PAGE>

          8.8 ARBITRATION OF DISPUTES.

          (a) Employer and Employee shall resolve by final and
     binding arbitration any and all claims or controversies for
     which a court otherwise would be authorized by law to grant
     relief, in any way arising out of, relating to or associated
     with Employee's employment with Employer, or the termination
     of such employment. This mutual agreement to arbitrate
     includes any claims that Employer may have against Employee,
     or that Employee may have against Employer or against any of
     its officers, directors, employees, agents, or parent,
     subsidiary, or affiliated entities. Employer and Employee         INITIAL
     agree that arbitration, as provided for in this Agreement,
     shall be the exclusive form for the resolution of any covered     -------
     dispute between the parties. IN AGREEING TO ARBITRATION, BOTH     /s WGM
     EMPLOYER AND EMPLOYEE EXPLICITLY WAIVE THEIR RESPECTIVE           -------
     RIGHTS TO TRIAL BY JURY.

          (b) The claims covered by this Agreement include, but are not limited
     to, claims for breach of any contract or covenant, express or implied;
     claims for breach of any fiduciary duty or other duty owed to Employee by
     Company or to Company by Employee; tort claims; claims for wages or other
     compensation due; claims for discrimination or harassment, including but
     not limited to discrimination or harassment based on race, sex, pregnancy,
     religion, national origin, ancestry, age, marital status, physical
     disability, mental disability, medical condition, or sexual orientation;
     and claims for violation of any federal, state or other governmental
     constitution, statute, ordinance or regulation (as originally enacted and
     as amended), including but not limited to claims under Title VII of the
     Civil Rights Act of 1964, the Fair Labor Standards Act, the Employee
     Retirement Income Security Act, the Consolidated Omnibus Budget
     Reconciliation Act, the Family and Medical Leave Act, the Age
     Discrimination in Employment Act, the California Fair Employment and
     Housing Act, the California Family Rights Act, the California Labor Code,
     the California Civil Code, and the California Wage Orders (collectively,
     "Arbitrable Disputes").

          (c) This mutual agreement to arbitrate claims does not limit
     Employee's right to file an administrative charge with the Equal Employment
     Opportunity Commission or any state agency charged with enforcement of fair
     employment practice laws. This mutual agreement to arbitrate claims also
     does not apply to or cover claims for workers' compensation benefits or
     compensation, claims for unemployment compensation benefits, or claims
     based upon an employee pension or benefit plan the terms of which contain
     an arbitration or other non-judicial dispute resolution procedure, in which
     case the provisions of such plan shall apply.

          (d) A party with an Arbitrable Dispute must initiate the dispute
     resolution process by submitting a written request for arbitration under
     this Agreement within one year of the date the dispute first arose, or
     within one year of the termination of employment, whichever occurs first;
     provided, however, if the party's claim arises under any statute providing
     a longer time in which to file a claim, that statute governs. A request
     submitted by Employee must be directed to the Chairman of Employer at
     Employer's principal place of business. A request submitted by Employer
     shall be sent to the Employee at the Employee's address as reflected on
     Employer's personnel records.

                                       8

<PAGE>

          (e) If an Arbitrable Dispute cannot be settled through negotiation,
     the parties agree first to try in good faith to settle the dispute by
     non-binding mediation administered by JAMS, before resorting to
     arbitration. The mediator's fees and any administrative fees or costs
     associated with the mediation shall be paid by Employer. Each party shall
     bear its or his own costs of legal representation at the mediation.

          (f) Any arbitration shall be conducted before a single arbitrator
     under the Comprehensive Arbitration Rules and Procedures of JAMS then in
     effect, except to the extent such Rules and Procedures are inconsistent
     with any provision of this Agreement. Employer shall pay any arbitration
     filing fee, and will bear all other costs of arbitration, including fees
     for the services of the arbitrator and any court reporter ordered by the
     arbitrator. Each party shall bear its or his own costs of legal
     representation; provided, however, if any party prevails on a claim
     entitling the prevailing party to attorneys' fees and/or costs, the
     Arbitrator may award reasonable fees and/or costs to the prevailing party
     in accordance with such claim. The arbitration shall take place in Orange
     County, California. The Arbitrator shall have the authority to order such
     discovery by way of deposition, interrogatory, document production, or
     otherwise, as the Arbitrator considers necessary to a full and fair
     exploration of the issues in dispute, consistent with the expedited nature
     of arbitration. The Arbitrator shall issue a written decision that reveals
     the essential findings and conclusions on which the decision is based, and
     the Arbitrator's decision shall be subject to such judicial review as is
     provided by law. This mutual agreement to arbitrate claims is enforceable
     under and subject to the Federal Arbitration Act, 9 U.S.C. ss. 1 ET SEQ.
     (the "FAA"), but if the FAA is held not to apply to this Agreement for any
     reason, this mutual agreement to arbitrate claims shall be enforced under
     the laws of the state of California.

          (g) Employee and Employer agree that nothing contained in this
     Agreement shall preclude either party from obtaining injunctive or other
     equitable relief to restrain violations of this Agreement or applicable law
     or to preserve the status quo pending the arbitration of any Arbitrable
     Dispute.

          (h) Employee and Employer hereby agree that this Agreement shall
     survive the termination of Employee's employment with Employer.

          8.9 LEGAL FEES. Except as set forth in Section 8.8 regarding the costs
of arbitration, if any legal action, arbitration or other proceeding is brought
for the enforcement of this Agreement, or because of any alleged dispute,
breach, default or misrepresentation in connection with this Agreement, the
successful or prevailing party shall be entitled to recover reasonable
attorneys' fees and other costs it incurred in that action or proceeding, in
addition to any other relief to which it may be entitled.

          8.10 AT-WILL EMPLOYMENT. EMPLOYEE'S EMPLOYMENT MAY BE TERMINATED BY
EITHER EMPLOYER OR EMPLOYEE FOR ANY REASON OR NO REASON, AT ANY TIME. NOTHING
CONTAINED IN THIS AGREEMENT SHALL BE DEEMED OR CONSTRUED AS RECOGNIZING OR
CONSTITUTING ANYTHING OTHER THAN AN AT-WILL EMPLOYMENT RELATIONSHIP. THE AT-WILL
EMPLOYMENT RELATIONSHIP WILL REMAIN IN EFFECT UNLESS SPECIFICALLY MODIFIED BY AN

                                       9

<PAGE>

INDIVIDUAL EXPRESS, WRITTEN AGREEMENT EXECUTED BY THE CHAIRMAN OF EMPLOYER AND
EMPLOYEE IN A WRITTEN AGREEMENT THAT SPECIFICALLY EXPRESSES A DESIRE TO MODIFY
THE AT-WILL NATURE OF EMPLOYEE'S EMPLOYMENT RELATIONSHIP WITH THE COMPANY.

          IN WITNESS WHEREOF, the undersigned have executed this Agreement on
the day and year first above written.

EMPLOYEE:                                     EMPLOYER:

/s William G. Mortensen                       ADVANCED MATERIALS GROUP, INC.
-----------------------------------
William G. Mortensen
                                              By: /s Timothy R. Busch
                                                  -----------------------------
                                                  Timothy R. Busch, Chairman

                                       10

<PAGE>

<TABLE>
<S>     <C>
                                                           EXHIBIT A

                                                       BONUS CALCULATION
                                                       -----------------

WILL MORTENSEN BONUS PLAN THRU FISCAL YEAR ENDING NOVEMBER 30, 2006
-------------------------------------------------------------------

Bonus is earned as a percentage of the income (loss) from continuing operations before income taxes of AMG as reported on
forms 10-Q and 10-K.

                                                                                                  EXAMPLE
                                                                                                  -------
                                                                                             INCOME BEFORE TAXES
                                                                                             -------------------

                                                                                           $780,000     $2,100,000

INCOME BEFORE TAX                          PERCENTAGE FOR CALCULATING AMOUNT OF
-----------------                          BONUS EARNED (annually as a percentage
(Fiscal Year Based)                        of income (loss) from continuing operations)
before taxes)
up to $100,000                                           5%                                  $5,000         $5,000
$100,001 to $250,000                                     3%                                  $4,500         $4,500
$250,001 to $500,000                                     7%                                 $17,500        $17,500
$500,001 to $1,000,000                                   10%                                $28,000        $50,000
$1,000,001 to $2,000,000                                 3%                                      $0        $30,000
Amounts greater than $2,000,000                          1%                                      $0         $1,000

                                                                TOTAL ANNUAL BONUS:         $55,000       $108,000

Example of Payment of Bonus on Quarterly     Year to Date Income                 50% of Bonus    Prior Quarters'     Current
Basis (based on the year to date Income      (Annualized) Before      Bonus      Earned as of    Payments Within    Quarter's
Before Tax at the end of each quarter)       Tax at Quarter End    Calculation   Quarter End       Fiscal Year        Bonus

First Quarter Profit of $125,000                     $500,000         $27,000       $13,500             $0            $13,500
Second Quarter Profit of $225,000                    $700,000         $47,000       $23,500           $13,500         $10,000
Third Quarter Profit of $100,000                     $600,000         $37,000       $18,500           $23,500            $0
Fourth Quarter Profit of $330,000                    $780,000         $55,000                         $23,500         $31,500
                                                                                                                    -----------

                                                                                                                      $55,000
</TABLE>

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