Document:

Execution copy

                            SHARE PURCHASE AGREEMENT

                           relating to the shares in:

                                COMPX EUROPE B.V.

                        made on 24 January 2005 between:

                            COMPX INTERNATIONAL INC.

                                   (as Seller)

                                       and

                               ANCHOR HOLDING B.V.

                                 (as Purchaser)

<PAGE>

CONTENTS

Clauses

1. Interpretation

2. Sale/purchase and transfer of the Shares

3. Purchase Price and payment

4. Completion

5. Seller's Representations and Warranties

6. Due Diligence investigation

7. Limitation on Seller's liability

8. Handling of Warranty Claims

9. Off-settable losses

10. Severance payment

11. Purchaser's Warranties

12. Post-closing covenants

13. Intercompany trading balances

14. Trade names

15. Confidentiality

16. Non-competition

17. Public announcements

18. Assignment

19. Expenses

20. Miscellaneous

21. Notices

22. Governing law and competent court

Schedules and Annexes

Schedule 1        Representations and Warranties

(Annex 8.1 - Intellectual Property)

(Annex 4.1 - Audited Accounts 2003)

(Annex 5.1 - Interim Accounts)

Schedule 2        Disclosure Letter

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(Annex I - Index of Data Room Documents)

Schedule 3     Purchaser's Warranties

Schedule 4     Transfer Deed

Schedule 5     Shareholders'   resolutions  in  respect  of  the  conversion  of
               outstanding  debts  (including  accrued  interest) and relocation
               provision into equity

Schedule 6     Shareholders'  resolutions  in  respect  of (i)  distribution  of
               reserves  and  (ii)   appointment   and  dismissal  of  statutory
               directors and dismissal of members of supervisory board

Schedule 7     Principal  Terms  and  Conditions  (regarding   distribution  and
               agency)

Schedule 8     Patent License Agreement

Schedule 9     Subordinated Loan

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                            SHARE PURCHASE AGREEMENT

This Share Purchase  Agreement (the  "Agreement") is made this 24 day of January
2005 between:

1.   COMPX INTERNATIONAL INC, a company incorporated under the laws of Delaware,
     having its place of business  located at Three Lincoln Centre,  Suite 1700,
     5430 LBJ Freeway, Dallas, Texas, USA 75240, hereinafter referred to as: the
     "Seller";

and

2.   ANCHOR HOLDING B.V. a private  company  incorporated  under the laws of the
     Netherlands,  having  its  statutory  seat in  Maastricht,  and  address at
     Industrieweg 40 (6219 NR) Maastricht, the Netherlands, hereinafter referred
     to as: the "Purchaser";

Party 1 and 2 are hereinafter  jointly  referred to as the "Parties" and each of
them a "Party";

WHEREAS:

A.   Seller  holds all issued  shares in the  capital of CompX  Europe  B.V.,  a
     private company with limited liability, (besloten vennootschap met beperkte
     aansprakelijkheid),  incorporated under the laws of the Netherlands, having
     its statutory seat in Maastricht,  and address at Industrieweg 40 (6219 NR)
     Maastricht, the Netherlands (the "Company");

B.   In turn, the Company holds - directly and/or  indirectly - the entire share
     capital of Thomas Regout Holding B.V. ("TRH"), Thomas Regout Nederland B.V.
     ("TRN").  Thomas Regout B.V.  ("TR") and Thomas Regout  International  B.V.
     ("TRI") (the Company,  TRH, TRN, TR and TRI hereinafter jointly referred to
     as the "Companies");

C.   Joost van Luyken in his capacity as member of the management  board of each
     of the  Companies  has  expressed  its interest to purchase from the Seller
     (through the Purchaser)  100% of the issued and  outstanding  shares in the
     Company  being 200 ordinary  shares with a nominal value of (euro) 100 (the
     "Shares");

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D.   the Purchaser and the Seller have complied with their obligations  pursuant
     to the Works Council Act (Wet op de  ondernemingsraden)  and the SER Merger
     Code  2000  (SER-Fusiegedragsregels  2000)  and  no  objections  have  been
     expressed  by  the  relevant   Works   Council(s)  to  the   (contemplated)
     Transaction;

E.   to the extent  applicable,  the Purchaser and the Seller have complied with
     the  obligations  pursuant  to  Chapter  5 of  the  Dutch  Competition  Act
     (Mededingingswet);

F.   the Seller and the Purchaser have obtained the necessary internal approvals
     to enter into the Transaction;

G.   Parties shall procure that the  outstanding  long term debts in the amounts
     of (euro)  20,218,257  (excluding  accrued  interest) and (euro)  3,477,053
     (excluding  accrued interest) payable by TR and the Company,  respectively,
     to the Seller prior to the Completion  Date including the accrued  interest
     thereon shall be converted into equity of the respective Companies no later
     than on the Completion Date;

H.   this Agreement  sets forth the terms and  conditions  pursuant to which the
     Seller has  accepted to sell and the  Purchaser  has agreed to purchase the
     Shares (the "Transaction").

NOW IT IS HEREBY AGREED AS FOLLOWS:

Clause 1.         Interpretation

In this Agreement:

Audited
Accounts  means the audited statutory financial  statements of the Companies for
          the period  ending 31 December  2003,  consisting  of a balance  sheet
          reflecting  the financial  position of the Companies as at 31 December
          2003,  the profit and loss  accounts for the period 1 May,  2003 up to
          and including 31 December 2003 and the explanatory notes thereto which
          financial  statements  are drawn up by the Seller in  accordance  with
          Dutch GAAP;

Agreement means  this  share  purchase  agreement   including  all  Annexes  and
          Schedules thereto;

Annex     any annex to any of the Schedules;

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Awarded Amount

          means the awarded amount as defined in Clause 5.4;

Business Day
          means a day,  other than a  Saturday  or  Sunday,  on which  banks are
          generally open for business in Amsterdam, and collectively referred to
          as "Business Days";

Breach of
Warranties
          means any Warranty,  individually  or together with other  Warranties,
          being wholly or partially  untrue,  inaccurate  or  misleading  on the
          Completion  Date;

Cash Purchase
Price
          means  the cash  purchase  price as  defined  in  Clause 3 of this
          Agreement;

CITA      means  Corporate  Income  Tax Act  (Wet  op de  vennootschapsbelasting
          1969);

CIT       means Corporate Income Tax, being taxation based on application of the
          CITA;

Communication
          means the communication as defined in Clause 21.1 of this Agreement;

Company   means CompX Europe B.V.;

Companies mean the companies as defined under B of the preamble;

Completion
          means  the  completion  of the  sale and  purchase  of the  Shares  in
          accordance with this Agreement;

Completion
Date      means 24 January 2005, or such other date as the Parties may agree;

Damages   means  damages as  referred  to in  section  6:96  Dutch  Civil  Code,
          excluding consequential damages and loss of profit to the extent these
          are not to be taken into account  pursuant to section 6:98 Dutch Civil
          Code;

Data Room means the data room containing  documents and information  relating to
          the   Companies   made   available   to  the   Purchaser   and   their
          representatives  and advisers at the offices of the Company.  An index
          of the documents and information provided to the Purchaser in the data
          room is attached as Annex I to Schedule 2;

<PAGE>

Disclosure
Letter    means the disclosure  letter referred to in Clause 5.1 and attached as
          Schedule 2;

Due Diligence
Investigation
          means the financial,  tax and legal due diligence  investigation  that
          Purchaser  and  its  advisors   conducted  into  the  affairs  of  the
          Companies;

Interim
Accounts  mean the  unaudited  balance  sheet of the Company as at September 24,
          2004 and the unaudited  income statement of the Company for the period
          from January 1, 2004 to September  24, 2004,  attached as Annex 5.1 to
          Schedule 1;

Notary    means  P.J.  Dortmond  or another  civil law notary of Stibbe,  or his
          substitute;

Notary's Account
Number   means the notary's  account with account number  696.462.672 held with
          ING;

Off-Settable Losses
          means  the  off-settable  losses  as  defined  in  Clause  9.1 of this
          Agreement;

Off-Settable Losses Indemnification

          means the off-settable losses indemnification as defined in Clause 9.1
          of this Agreement;

Party     means a party to this Agreement and collectively the "Parties";

Patent License
Agreement means the patent  license  agreement  defined in Clause 4 (xv) of this
          Agreement and attached as Schedule 8;

Principal terms and
Conditions
          means the principal terms and conditions  (regarding  distribution and
          agency)  defined in Clause 4 (xiv) of this  Agreement  and attached as
          Schedule 7;

Purchaser means the Party referred to under 2 in the preamble to this Agreement;

Purchase
Price     means the purchase price as defined in Clause 3 of this Agreement;

Purchaser's
Warranties
          mean the warranties by the Purchaser  referred to in Clause 11 of this
          Agreement and set out in Schedule 3;

Relevant Party
          means the relevant  party as defined in Clause 8.3 of this  Agreement;

Representations
and Warranties
          mean the statements set out in Schedule 1;

Schedules any schedule to this agreement;

Seller    means the Party referred to under 1 in the preamble to this Agreement;

Seller's
Knowledge means the  knowledge of the Seller in its capacity as  shareholder  of
          the Company and in its capacity as statutory director and, whereby the
          knowledge  of the Seller in its  capacity  as  statutory  director  is
          limited to its actual knowledge;

Shares    mean 100% of the  issued  and  outstanding  shares of the  Company  as
          defined under C of the preamble;

Signing Date
          means the date of signing this Agreement, being the Completion Date;

Subordinated Loan
Agreement means the  subordinated  loan  agreement  defined in Clause 4 (xvi) of
          this Agreement and attached as Schedule 9;

Taxes     mean value added tax, wage and personal income taxes,  social security
          premiums, corporate income tax and capital tax;

Third Party
Claim     means a liability vis-a-vis or a dispute with a third party;

Transaction
          means the  transaction  as  defined  under H in the  preamble  of this
          Agreement;

TR

          means the  company  as  defined  under B in the  preamble  of this
          Agreement;

Transfer
Deed
          means  the  notarial  deed of  transfer  by which the  Shares  will be
          transferred by the Seller to the Purchaser;

TRH      means the company as defined under B in the preamble of this Agreement;

TRI      means the company as defined under B in the preamble of this Agreement;

TRN      means the company as defined under B in the preamble of this Agreement;

VAT       means Value Added Tax, being taxation based on the Value Added Tax Act
          (Wet op de omzetbelasting 1968);

Warranty
Claim     means any  individual  claim by the Purchaser in respect of any of the
          Representations and Warranties.

Clause 2. Sale/purchase and transfer of the Shares

2.1  On the terms and  conditions  set out in this  Agreement  the Seller hereby
     sells the Shares to the Purchaser,  and the Purchaser  hereby purchases the
     Shares from the Seller.

2.2  Subject to  Completion,  the  Purchaser  shall be entitled to exercise  all
     rights attached or accruing to the Shares as of the Completion Date.

2.3  The sale,  purchase  and  transfer  of the  Shares  shall take place on the
     Completion  Date by means of signing this  agreement and the Transfer Deed,
     which will be executed  before the Notary.  A copy of the Transfer Deed has
     been  attached  hereto as Schedule  4. The Company  shall be a party to the
     Transfer Deed, thereby acknowledging the transfer of the Shares.

Clause 3.            Purchase Price and payment

3.1  The purchase  price (the  "Purchase  Price") for the Shares shall amount to
     (i) a cash payment in the amount of (euro)  14,800,000 (in words:  fourteen
     million eight hundred  thousand  Euro(s)) (the "Cash  Purchase  Price") and
     (ii) debt of the  Purchaser  in the amount of (euro)  3,200,000  (in words:
     three  million two  hundred  thousand  Euro(s))  (to be  denominated  in US
     dollars  on  the  Completion   Date)  pursuant  to  and  evidenced  by  the
     Subordinated  Loan Agreement as described in Clause 4 (xvi).  It is assumed
     that:

     (i)  any increase of the consolidated  amount of shareholders equity as per
          24 September 2004 until the  Completion  Date shall be for the benefit
          of the Purchaser; and

     (ii) no  payments  on  existing  long term debts  and/or  interest  payment
          relating  thereto  have been made in the period  prior to the  Closing
          Date.

3.2  The  Purchaser  shall pay the Cash Purchase  Price to the Notary's  Account
     Number by telephonic transfer order on the Completion Date. Upon receipt by
     the Notary of the Cash Purchase Price and upon  satisfaction of all payment
     obligations of the Company pursuant to the  Subordinated  Loan Agreement as
     referred to in Clause 4 (xvi),  the Purchaser  shall be deemed to have been
     granted  discharge  by the  Seller  concerning  its  obligation  to pay the
     Purchase Price.

Clause 4. Completion

On the Completion Date the following  actions and settlement shall take place in
the following order:

(i)    the Company  has  reimbursed  the Seller for the  payments it has made in
       relation to the insurance coverage in the amount of (euro) 256,078;

(ii)   the Seller is hereby discharged by the Company from its (alleged) payment
       obligation  in  the  amount  of  (euro)  485,292  regarding  the  royalty
       agreement;

(iii)  the outstanding  long term debts including  accrued interest (as referred
       to in recital G) shall be converted into equity by means of the execution
       of the  resolutions  attached  hereto as  Schedule  5. The  Seller  shall
       reimburse    the    respective    Companies    for   any    capital   tax
       (kapitaalsbelasting) associated with these conversions. For the avoidance
       of  doubt,  capital  tax  (kapitaalsbelasting)  due  as  a  result  of  a
       conversion  into share capital of the  Companies  which takes place after
       the Completion Date shall be borne and paid by the Purchaser;

(iv)   the Purchaser shall procure that a part of the Cash Purchase Price in the
       amount of  (euro)  3,300,000  (in  words:  three  million  three  hundred
       thousand  Euro(s))  has  been  paid to the  Notary's  Account  Number  by
       telephonic transfer order;

(v)    a right of pledge on the Shares shall be  established by the Purchaser in
       favor of the Rabobank Overname Financiering B.V. subject to the condition
       precedent that the Shares have been  transferred  in accordance  with the
       terms and conditions of this Agreement;

(vi)   the Seller shall transfer to the Purchaser  title to and ownership of the
       Shares in accordance with Clause 2.3 of this Agreement;

(vii)  within the statutory  limits and the limits set by Dutch law distribution
       out of the freely  distributable  reserves  of the  Companies  shall take
       place by means of the  execution of the  resolutions  attached  hereto as
       Schedule 6;

(viii) the Purchaser  shall pay a part of the Cash Purchase  Price in the amount
       of (euro)  11,500,000  (in words:  eleven  million five hundred  thousand
       Euro(s)) to the Notary's Account Number by telephonic transfer order;

(ix)   the  Purchaser  shall  pay to the  Seller  the  Cash  Purchase  Price  by
       instructing  the Notary to transfer the Cash Purchase  Price  credited by
       the Purchaser to the Notary's Account Number by telephonic transfer order
       to an account number designated by the Seller in accordance with Clause 3
       of this Agreement;

(x)    the Seller  shall  make  available  to the  Purchaser  the  shareholders'
       registers of the Companies.  In the shareholders  register of the Company
       the transfer of the Shares  shall be properly  recorded and signed by the
       management board of the Company;

(xi)   Purchaser,  the Company, TRH, TRN and TR shall, in their capacity as sole
       shareholder of respectively the Company TRH, TRN, TR and TRI, dismiss all
       present  statutory  directors  of TRH,  TRN, TR and TRI,  grant them full
       discharge  for their  management  until the  Completion  Date and appoint
       Purchaser  as  statutory  director of the  Company,  TRH,  TRN and TR and
       Familie  Van Luyken  B.V.  as  statutory  director of TRI by means of the
       execution of the resolutions attached hereto as Schedule 6;

(xii)  the Company, in its capacity as sole shareholder of TRH, shall grant D.A.
       Bowers and D.R.  Halbert as members of the supervisory  board of TRH full
       discharge for their supervision until the Completion Date by means of the
       execution of the resolution attached hereto as Schedule 6;

(xiii) the  Purchaser  shall  provide  the Seller with the  resignation  letters
       signed by (i) CompX  International  Inc and J.M.B.J.  van Luyken in which
       the  relevant  managing  director  resigns as  managing  director  of the
       Company,  TRH,  TRN,  TR and TRI  immediately  after the  transfer of the
       Shares,  and (ii) D.A.  Bowers  and D.R.  Halbert  in which the  relevant
       supervisory  director resigns as supervisory  director of TRH immediately
       after the transfer of the Shares;

(xiv)  the Purchaser and the Seller (or any of its group  companies) shall enter
       into principal terms and conditions  (regarding  distribution and agency)
       in the draft form attached hereto as Schedule 7 (the "Principal Terms and
       Conditions");

(xv)   the Purchaser and the Seller (or any of its group  companies) shall enter
       into a license  agreement in the draft form attached hereto as Schedule 8
       (the "Patent License Agreement");

(xvi)  the  Purchaser  and the  Seller  shall  enter  into a  subordinated  loan
       agreement  in the draft form  attached  hereto as  Schedule 9 pursuant to
       which a loan is granted by the Seller to the  Purchaser for the remainder
       of the Purchase Price,  amounting to Euro 3,200,000 (to be denominated in
       US dollars on the Completion Date) (the "Subordinated Loan Agreement").

Clause 5. Seller's Representations and Warranties

5.1    Subject to the limitations set forth in this Clause 5 and Clause 6, 7 and
       8 the Seller hereby represents and warrants to the Purchaser that each of
       the matters  set forth in  Schedule 1 hereto is and will be true  correct
       and not misleading at the Completion Date,  except for any matters and/or
       circumstances that have been disclosed to the Purchaser in the Disclosure
       Letter attached as Schedule 2.

5.2    The Seller  acknowledges  that the  accuracy of the  Representations  and
       Warranties is essential for the  Purchaser's  decision to enter into this
       Agreement on the terms contained  herein.  The Seller has no knowledge of
       facts and  circumstances  which have not been  disclosed to the Purchaser
       prior to the date of this Agreement,  which facts and  circumstances  can
       reasonably  be  considered  as  having  any  material  relevance  for the
       Purchaser entering into this Agreement.

5.3    The Purchaser acknowledges that the Representations and Warranties by the
       Seller are  limited to the ones  contained  in  Schedule  1. The  Parties
       exclude the  applicability  of the provisions of title 1 of Book 7 of the
       Dutch Civil Code.

5.4    The Seller hereby  covenants and agrees with the Purchaser  that it shall
       compensate  the  Purchaser  on a euro for  euro  basis  for all  Damages,
       subject to the limitations, if any, of Clause 8, which may be incurred or
       sustained by the  Purchaser  directly and  exclusively  resulting  from a
       Breach of Warranties,  provided that such Damages have been awarded in an
       amount which is immediately enforceable (uitvoerbaar bij voorraad) by the
       relevant  courts (the "Awarded  Amount") or such claims have been settled
       in accordance  with Clause 8. If and to the extent the Awarded Amount has
       been paid by the Seller and is rejected by the  relevant  court of appeal
       in appeal proceedings and therefore the Purchaser has incurred no Damages
       (partially or wholly),  the rejected amount shall  immediately be paid by
       the Purchaser to the Seller.

5.5    The Purchaser  hereby  covenants and agrees with the Seller that it shall
       not set off, nor has a right to set off  (verrekenen)  any amount owed to
       the Purchaser  resulting from a Breach of Warranties with any amount owed
       to the Seller under the Subordinated  Loan Agreement and/or the Principal
       Terms and Conditions.

5.6    The Seller cannot invoke force majeure against a claim based on Breach of
       Warranties.

Clause 6. Due Diligence Investigation

6.1    The Purchaser has  conducted the Due Diligence  Investigation,  which Due
       Diligence Investigation has been completed before the Completion Date. As
       part of the Due  Diligence  Investigation,  the Seller has  provided  the
       Purchaser with  information  and  documentation  listed in the Disclosure
       Letter that is attached as Annex I to Schedule 2.

6.2    The  Purchaser  declares that it is not aware of any Breach of Warranties
       or any claim or matter which could give rise to such breach.

Clause 7. Limitation on Seller's liability

7.1    The Seller  shall not be liable  for any  Warranty  Claim  unless (a) the
       amount of any single Warranty Claim exceeds (euro) 10,000 (in words:  ten
       thousand  Euro(s)),  whereby claims arising from the same  Representation
       and  Warranty or in respect of the same  subject  matter or from the same
       cause, set of facts or relating to the same type of asset or liability on
       the balance  sheet,  shall be considered  one single  claim,  and (b) the
       aggregate  amount of liability in respect of all Warranty  Claims exceeds
       (euro) 75,000 (in words:  seventy five thousand  Euro(s)),  in which case
       the Seller shall be liable for the aggregate amount.

7.2    The total  aggregate  liability  of Seller for claims  arising  out of or
       related to this Agreement  (including  Warranty  Claims) shall not exceed
       fifty per cent (50%) of the Purchase  Price,  being (euro)  9,000,000 (in
       words: nine million Euro(s)).

7.3    The Seller shall have no liability in respect of any Warranty Claim:

       (i)    to the extent that such  claims  would not have arisen but for (a)
              any  change  in the  applicable  law or  taxes  or  interpretation
              thereof  after the  Completion  Date  (whether  or not such change
              purports  to  have  retroactive  effect),  (b) any  change  in the
              accounting   policies  and  methods  applied  in  respect  of  the
              Companies after the Completion Date; or

       (ii)   to the extent that any  provision  or reserve has been made in the
              Audited  Accounts  and/or the Interim  Accounts for matters giving
              rise to a Warranty Claim; or

       (iii)  to the extent it relates to any loss or Damages which is recovered
              by the Purchaser and/or the Companies from its insurers.

7.4    The  liability  of the Seller in respect of any  Warranty  Claim shall be
       reduced  by any Tax or  other  saving  directly  in  connection  with the
       circumstances that give rise to a Warranty Claim.

7.5    Any payment made by the Seller in respect of any Warranty Claims shall be
       deemed to be a reduction of the amount of the Cash Purchase Price.

Clause 8. Handling of Warranty Claims

8.1    The Purchaser shall inform the Seller in writing of any Warranty Claim as
       soon as  reasonably  possible  and in any event  within 30 Business  Days
       after the Purchaser  has become aware of such Warranty  Claim stating the
       nature of the breach and - to the extent reasonably possible - the damage
       sustained  or  expected,  failing  which no claim can be  brought  by the
       Purchaser against the Seller on the basis of such Warranty Claim.

8.2    The  Seller  shall not be liable  for any  Warranty  Claim  unless it has
       received written notice from the Purchaser:

       (i)    in case of a Warranty Claim in respect of the  Representations and
              Warranties  in  paragraph 6 of Schedule 1 (`Taxes')  within  three
              months  after the date of expiry of the period of time  prescribed
              by the applicable statute of limitations,

       (ii)   in case of a  Warranty  Claim  in  respect  of the  Warranties  in
              paragraph 2 (Corporate Standing),  3 (Capital and Shares), 7.2 and
              7.3 of Schedule 1 within ten (10) years from the Completion  Date;
              and

       (iii)  in  case  of a  Warranty  Claim  in  respect  of any of the  other
              Warranties within eighteen (18) months as of the Completion Date;

8.3    If a Breach of Warranty is the result of or connected  with a Third Party
       Claim, the Purchaser shall ensure that:

       (i)    the party  against  whom the Third Party Claim is made  ("Relevant
              Party")  shall,  after mutual  consultation  of the Seller and the
              Purchaser, do everything (or as the case may be refrain from doing
              anything) to conduct a defence  against,  or  negotiate  about the
              Third Party Claim concerned,  and to minimize the Damages that may
              arise from the Third Party Claim;

       (ii)   in  connection  with  the  defence   referred  to  above  in  this
              paragraph,  the Relevant  Party shall only engage  advisors  after
              consultation  with the Seller and the Purchaser,  or, at the joint
              request of the Seller and the Purchaser give the Seller a power of
              attorney to act in and out of court as agent of the Relevant Party
              in respect of the  defence or  negotiations  relating to the Third
              Party Claim.

8.4    To the extent  Seller  acts in and out of court as agent of the  Relevant
       Party in respect of the  defence or  negotiations  relating  to the Third
       Party  Claim as  referred  to above,  the Seller  shall have the right to
       settle  or  defend,  at its own  expense  and with  its own  professional
       advisors,  any Third Party Claim. The Purchaser shall co-operate with the
       Seller in defence  and/or  negotiations  relating to a Third Party Claim,
       including  but not  limited to  providing  without  charge  access to all
       relevant  information,  which  may be  requested  by the  Seller  in this
       respect.  The Purchaser shall not unreasonably  withhold its consent to a
       settlement by the Seller of a Third Party Claim.  If the Seller wishes to
       settle a Third Party  Claim,  and the  Purchaser  refuses to consent such
       settlement  on  unreasonable  grounds,  the  liability  of the  Seller in
       respect of such Third Party Claim shall be limited to the amount  offered
       for the settlement.  The Purchaser shall not induce third parties to make
       a Third  Party  Claim.  The Seller  shall not be liable  for Third  Party
       Claims that are so induced.

8.5    In their manner of conduct in respect of a Third Party Claim, the parties
       shall take into  account the  reasonable  interest of the other party and
       the Seller shall thereby give reasonable consideration to the Purchaser's
       interest in maintaining a commercial  relationship  between the Purchaser
       and the third party. However, if any conflict arises between the Seller's
       interest in minimizing any compensation to be paid to the third party and
       the Purchaser's  interest in maintaining a commercial  relationship  with
       the third party, the Seller's  interest in minimizing any compensation to
       be paid to the third part shall in any event prevail.

Clause 9. Off-settable losses

9.1    The off-settable losses (compensabel verlies) (the "Off-Settable Losses")
       of the Company  amounts to at least (euro)  1,400,000  on the  Completion
       Date. If and to the extent the  Off-Settable  Losses are less than (euro)
       1,400,000 the Seller shall reimburse the Company for the taxes related to
       the  shortfall.  For the avoidance of doubt,  the liability of the Seller
       shall not exceed the amount of (euro)  1,400,000  times the corporate tax
       rate in effect at the time a shortfall is determined  (the  "Off-Settable
       Losses Indemnification").

9.2    If and to the extent  that (i) the  conversions  set forth under G in the
       preamble  of this  Agreement  result in  corporate  income  tax or (ii) a
       current and/or deferred interest deduction related to the long term debts
       of the Companies to the Seller is disallowed,  Seller shall reimburse the
       Purchaser for the amount of the tax claim in addition to the Off-Settable
       Losses Indemnification set forth in Clause 9.1.

9.3    The  disclosures  set forth in  paragraph  6.3 and 6.4 of the  Disclosure
       Letter do not limit  Purchaser's  right to claim under Clause 9.2 of this
       Agreement.

9.4    The Off-Settable Losses  Indemnification and any obligation of the Seller
       to reimburse the Purchaser pursuant to Clause 9.2 shall not be subject to
       the threshold set forth in Clause 7.1 of this Agreement.

Clause 10. Severance payment

The  obligation  assumed by the Seller to reimburse  the Purchaser for a maximum
amount of (euro) 100,000,  which  reimbursement  relates to the exit of Mr. P.J.
Collins,  has been reimbursed by the Seller by way of set off against the amount
payable by the Company to the Seller pursuant to Clause 4 (i) of this Agreement.

Clause 11. Purchaser's Warranties

11.1   The  Purchaser  represents  and  warrants  to the Seller that each of the
       matters set forth in  Schedule 3 hereto is and will be true and  accurate
       at the Completion Date, unless  explicitly  stated otherwise.  The Seller
       acknowledges  that  the  Purchaser  Warranties  are  limited  to the ones
       contained in Schedule 3.

11.2   The Purchaser hereby  covenants and agrees with the Seller that,  subject
       to the other provisions of this Clause 11, it shall compensate the Seller
       and indemnify it against any and all liabilities and damages which may be
       incurred or  sustained  by the Seller  resulting  from or relating to any
       misrepresentation or breach of warranty under the Purchaser Warranties.

11.3   If the  Seller  becomes  aware  of a  breach  pursuant  to the  Purchaser
       Warranties,  it shall inform the Purchaser  thereof  (thereby stating the
       nature if the fact circumstance or event concerned, as well as the amount
       of the liabilities and damages  expected) as soon as reasonably  possible
       and in any event  within 30  Business  Days  after the  Seller has become
       aware of such breach, failing which no claim can be brought by the Seller
       against the  Purchaser  on the basis of such breach  under the  Purchaser
       Warranties.

Clause 12. Post-closing covenants

12.1   The Seller hereby  covenants and agrees with the Purchaser that as of the
       Completion  Date until 1 July 2005 the  Companies can continue the use of
       the license as granted to the Seller and its group companies  pursuant to
       the  contract  that the Seller has entered into with Mc Afee on behalf of
       its group companies.

12.2   The Seller hereby  covenants and agrees with the Purchaser that as of the
       Completion  Date the  Companies  can  continue  the use of the license as
       granted to the Seller and its group  companies  pursuant to the  contract
       that the Seller has entered  into with  Microsoft  on behalf of its group
       companies,  whereby  (the use of) such license is limited to the software
       released by Microsoft  prior to the  expiration of the contract on 1 July
       2005.  The  Companies  may install any  updates or  improvements  thereto
       without incurring additional licensing fees.

12.3   In case at any time after Completion any further action is necessary from
       either  the  Companies  and/or the  Seller  (or its group  companies)  to
       complete  each other's tax filings  and/or audit  filings,  Parties shall
       furnish to each other (and to their respective tax advisors and auditors)
       and provide access to, all relevant  information as reasonably  requested
       by the other party.  The Purchaser  shall ensure that the Companies shall
       designate PricewaterhouseCoopers Accountants N.V. as to perform an annual
       audit of their financial statements for the year 2004. The Seller and the
       Purchaser shall procure that each of their group companies, employees and
       advisors shall co-operate with the covenant described in this Clause 12.

12.4   The Seller hereby covenants and agrees with the Purchaser that within one
       (1) month as of the Completion Date the domain names  "thomasregout.biz",
       "thomasregout.net" and  "thomasregout.info" are transferred to TRI for no
       consideration.

12.5   The Seller hereby covenants and agrees with the Purchaser that within six
       (6)  month as of the  Completion  Date the  trademark  registered  in the
       United States  Patent and  Trademark  Office in the name of Thomas Regout
       USA Inc under registration  number 2,341,342 is transferred to TRI for no
       consideration.

Clause 13. Intercompany trading balances

For the avoidance of doubt, the balance of payables and receivables  between the
Companies  on the one hand and Seller  and/or any of its group  companies on the
other hand,  other than the ones listed in Clause 4,  relating to their  trading
activities,  shall remain in place beyond the Completion  Date and be dealt with
in the ordinary course of business.

Clause 14. Trade names

14.1   Without  prejudice to the rights and obligations of the Parties  pursuant
       to  the  Principal  Terms  and  Conditions,   Parties  hereby  agree  and
       acknowledge that during a period of three (3) months as of the Completion
       Date the Seller and/or its group  companies and the Purchaser  and/or the
       Companies are entitled to use the trade names "CompX  Regout" and "Thomas
       Regout".

14.2   The Seller and the  Purchaser  shall ensure that within six (6) months as
       of the Completion Date, the formal names of Thomas Regout USA Inc and the
       Company,  respectively,  shall be amended,  provided that the new name of
       Thomas  Regout USA Inc, or any part  thereof,  shall not include the name
       "Thomas  Regout" and the new name of the  Company,  or any part  thereof,
       shall not include the name "CompX".

14.3   The  Parties to this  Agreement  hereby  agree and  acknowledge  that the
       formal  names of the Seller and each and any of its group  companies  and
       the Purchaser and each and any of the Companies,  respectively, shall not
       (be amended as to) include the name "Thomas Regout", or any part thereof,
       respectively, the name "CompX", or any part thereof.

Clause 15. Confidentiality

15.1   The Parties to this Agreement  shall treat as strictly  confidential  all
       information regarding the contents of and/or the negotiations relating to
       this Agreement. Each party may, however, disclose information which would
       otherwise be  confidential,  if and to the extent (i) required by law, or
       (ii) required by contractual obligations existing at the time of entering
       into this  Agreement,  or (iii)  required by any  securities  exchange or
       regulatory or  governmental  body to which the relevant party is subject,
       or (iv) the  information has come into the public domain through no fault
       of that party,  or (v) the other Parties have given prior approval to the
       disclosure,  which approval shall not be unreasonably  withheld.  Each of
       the  Parties  hereby  covenants  that  in  the  event  of  disclosure  of
       information,  which would otherwise be confidential, it will consult with
       the other Party as to the contents and form of the disclosure to be made.

15.2   Each of the Parties shall procure that its subsidiaries,  employees,  and
       advisors shall act in accordance with the provisions of this Clause.

15.3   In the event  that a Party  breaches  any of its  obligations  under this
       Clause,  the Party who is in breach shall, after having been given notice
       of default by the other Party and if within twenty (20) days after having
       received such notice the breach has not been  remedied,  become liable to
       the other  Party for a penalty in the amount of Euro  250,000  (in words:
       two  hundred  and fifty  thousand  Euro) for each such breach and without
       prejudice to the right of the other Party to claim Damages.

Clause 16. Non-competition

16.1.  The  Seller  hereby  agrees  and  undertakes  that,  notwithstanding  the
       arrangements made in the Principal Terms and Conditions, it will not:

       o      in Europe,  without the prior written consent of Purchaser,  for a
              period  of 3  (three)  years  from  the  Completion  Date,  either
              directly or indirectly through any of its affiliated companies, as
              principal,  consultant, sales representative,  agent, distributor,
              shareholder or partner,  either  directly or indirectly,  solicit,
              endeavor  to  solicit,  be engaged in  activities  which  directly
              compete with the  business of the  Companies as carried out on the
              Completion Date;

       o      either  directly  or  indirectly  through  any of  its  affiliated
              companies,  persuade,  cause or attempt to persuade any  employee,
              distributor,  commercial  agent or any customer or supplier  doing
              business  with the Companies on the  Completion  Date to terminate
              his,  her or its  relationship  with  the  Companies,  or take any
              action that may result in the impairment of such relationship.

16.2.  In the event  that  Seller  breaches  any of its  obligations  under this
       Clause,  Seller  shall,  after having been given notice of default by the
       Purchaser  and if within  twenty  (20) days after  having  received  such
       notice the breach has not been  remedied,  become liable to the Purchaser
       for a penalty in the amount of Euro  250,000  (in words:  two hundred and
       fifty  thousand  Euro) for each such breach and for a penalty  payment of
       Euro  10,000  (in  words:  ten  thousand  Euro) for each day such  breach
       continues  and without  prejudice to the right of the  Purchaser to claim
       Damages.

Clause 17. Public announcements

All public  announcements  in respect of (the subject  matter and provisions of)
this  Agreement  shall be agreed upon between the Parties,  not only as to their
contents but also with respect to their form and timing,  with the  exception of
those public announcements the Seller is required (i) by law or (ii) required by
any securities  exchange or regulatory or governmental  body to which the Seller
is  subject.  A copy of such  public  announcement  shall  be  submitted  to the
Purchaser after it has been released.

Clause 18. Assignment

None of the Parties may assign its rights and/or transfer its obligations  under
this Agreement, either in whole or in part, to any other party without the prior
written consent of the other Party.

Clause 19. Expenses

Each of the  Parties to this  Agreement  shall  bear its own costs and  expenses
incurred in connection with the  preparation and  consummation of this Agreement
and the  transaction  contemplated  thereby,  provided  that  the  costs  of the
transfer of the Shares shall be borne by the Purchaser.  The success fee of Boer
& Croon,  less any credit for hourly fees previously paid by the Company,  shall
be paid by the Seller whereas the hourly fees and cost paid and/or due to Boer &
Croon relating to the sale of the Company shall be borne by the Company.

Clause 20. Miscellaneous

20.1   This  Agreement  constitutes  the entire  agreement  between  the Parties
       thereto  with  respect to the sale and  purchase of the Shares,  and this
       Agreement  supersedes any and all earlier agreements,  either verbally or
       in  writing,  between  the  Parties.  The  Schedules  and Annexes to this
       Agreement form an integral part thereof.  Any reference to this Agreement
       includes a reference to said Schedules and Annexes and vice versa.

20.2   The headings in this Agreement are for convenience only and do not affect
       the  interpretation  of this  Agreement.  References in this Agreement to
       Clauses,  Annexes and  Schedules are  references to Clauses,  Annexes and
       Schedules of this Agreement.

20.3   In case of conflict  between or  inconsistency  of the provisions of this
       actual  agreement  and the  contents of the  Schedules  or  Annexes,  the
       provisions of this actual agreement shall prevail.

20.4   In case of  conflict  between  Dutch  legal  concepts  mentioned  between
       brackets and/or in italics in this Agreement and the English  translation
       thereof  as used in this  Agreement,  the  Dutch  text,  and its  meaning
       thereof under Dutch law, will prevail.

20.5   If any provision of this Agreement  should be invalid or in any other way
       unenforceable,  such provision shall be ineffective only to the extent of
       such  unenforceability  or  invalidity  and  shall in no way  affect  the
       enforceability  or validity of the remainder of such provision nor of the
       other provisions of this Agreement. In that event the Parties shall after
       mutual consultation amend such provision,  taking into account the spirit
       of  the  Agreement,   and  replace  the  provision  that  is  invalid  or
       unenforceable  by a provision that resembles the invalid or unenforceable
       provision as closely as possible.

20.6   No failure on the part of any party to this Agreement to exercise, and no
       delay in  exercising,  any right  under this  Agreement,  in the event of
       breach of contract by any party hereto,  will operate as a waiver of such
       right under this Agreement.

20.7   The Parties waive their right to rescind (ontbinden) this Agreement under
       section 6:265 et seq. Dutch Civil Code.

Clause 21. Notices

21.1   Any  communication or document,  including process in any legal action or
       proceedings,  which  either  party  may  desire  to  give or  deliver  in
       connection with this Agreement (a "Communication") shall be:

       (a)    in writing;

       (b)    delivered  by  hand or sent by  registered  mail  (in the  case of
              communications within the same country) or by airmail post (in the
              case of communications  being sent from one country to another) or
              by fax to the  addressee  at its  address or fax number set out in
              Clause 21.3.

21.2   A Communication shall be deemed to have been given, if delivered by hand,
       at the time of  delivery,  if sent by post,  on the second  Business  Day
       after the  envelope  or package  containing  the same shall have been put
       into the post or, if sent by fax, on the Business Day  following  the day
       on which the same shall have been  transmitted  (provided  that a copy of
       the  Communication is delivered by another means permitted by this Clause
       as soon as is practicable).

21.3   The current  addresses and fax numbers of, and exterior markings required
       by, the Parties for the purposes of Communications are as follows:

         Seller

         Compx International Inc.
         Attn. Mr. D.A. Bowers
         Address: P.O. Box 200 Old Mill Road, Mauldin, USA 29662
         Fax number:       + 1 864 297 12 02
         E-mail: dbowers@compxnet.com

         With a copy to:

         Stibbe
         Attn. Mr. C.F. Hamersma
         Address: Strawinskylaan 2001
         1077 ZZ Amsterdam
         Fax number:      + 31 20 546 07 15
         E-mail: casper.hamersma@stibbe.com

         Purchaser
         Anchor Holding B.V.
         Attn. Mr. J. M.B.J. van Luyken
         Address: Industrieweg 40
         6219 NR Maastricht
         Fax number.       + 31 43 351 66 99
         E-mail: j.vanluyken@tregout.nl

         With a copy to:

         Dijkstra Voermans Advocaten
         Attn. Mr. R.H.C. Larsson
         Address: Winthontlaan 2
         3502 HB Utrecht
         Fax number:       + 31 30 285 03 01
         E-mail: risto.larsson@dvan.nl

Clause 22. Governing law and competent court

22.1   This Agreement  shall be construed in accordance  with and be governed by
       the laws of the Netherlands.

22.2   In the  event of a  dispute  arising  out of or in  connection  with this
       Agreement or further agreements  resulting thereof,  the Parties will use
       their best efforts to resolve the matter  amicably  before  referring the
       matter to court as meant in Clause 22.3

22.3   All disputes that should arise in connection  with the  Agreement,  or of
       agreements relating thereto, shall be submitted to the competent court in
       Amsterdam.

Thus agreed and signed in twofold on 24 January 2005.

CompX International Inc:

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

Name:

Title:

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

Name:

Title:

Anchor Holding B.V.:

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

Name: Familie van Luyken B.V.

Title: Director

<PAGE>
                                                               Execution Copy
                                  USD 4,179,200
                                  Loan Facility

                           SUBORDINATED LOAN AGREEMENT
                        made on 24 January 2005 between:
                            COMPX INTERNATIONAL INC.
                                   (as Lender)

                                       and

                               ANCHOR HOLDING B.V.
                                  (as Borrower)

                                       and

                                COMPX EUROPE B.V.
                           THOMAS REGOUT HOLDING B.V.
                          THOMAS REGOUT NEDERLAND B.V.
                               THOMAS REGOUT B.V.
                        THOMAS REGOUT INTERNATIONAL B.V.
                                (as Subsidiaries)

                                       And

 RABOBANK OVERNAME FINANCIERINGEN B.V. co6PERATIEVE RABOBANK MAASTRICHT E.O. U.

<PAGE>

                           SUBORDINATED LOAN AGREEMENT

This Subordinated Loan Agreement (the "Agreement") is made this 24 January 2005
between:

1.     COMPX  INTERNATIONAL  INC.,  a  company  incorporated  under  the laws of
       Delaware,  having its place of business  located at Three Lincoln Centre,
       Suite 1700, 5430 LBJ Freeway.  Dallas,  Texas,  USA,  75240,  hereinafter
       referred to as: the "Lender" and/or "CompX Inc";

2.     ANCHOR HOLDING B.V., a private company incorporated under the laws of the
       Netherlands,  having its  statutory  seat in  Maastricht,  and address at
       Industrieweg  40  (6219  NR)  Maastricht,  the  Netherlands,  hereinafter
       referred to as: the "Borrower" and/or "Anchor";

3.     COMPX EUROPE B.V., a private company  incorporated  under the laws of the
       Netherlands,  having its  statutory  seat in  Maastricht,  and address at
       Industrieweg 40 (6219 NR) Maastricht, the Netherlands;

4.     THOMAS REGOUT HOLDING B.V., a private company incorporated under the laws
       of the Netherlands,  having its statutory seat in Maastricht, and address
       at Industrieweg 40 (6219 NR) Maastricht, the Netherlands;

5.     THOMAS REGOUT  NEDERLAND B.V., a private company  incorporated  under the
       laws of the  Netherlands,  having its statutory seat in  Maastricht,  and
       address at Industrieweg 40 (6219 NR) Maastricht, the Netherlands;

6.     THOMAS REGOUT B.V., a private company  incorporated under the laws of the
       Netherlands,  having its  statutory  seat in  Maastricht,  and address at
       Industrieweg 40 (6219 NR) Maastricht, the Netherlands;

7.     THOMAS REGOUT  INTERNATIONAL  B.V., a private company  incorporated under
       the laws of the Nethedands,  having its statutory seat in Maastricht, and
       address at Industrieweg 40 (6219 NR) Maastricht, the Netherlands;

8.     RABOBANK  OVERNAME  FINANCIERINGEN  B.V., a private company  incorporated
       under the laws of the  Netherlands,  having its statutory seat in Utrecht
       and address at Croeslaan 28 (3521 CD) Utrecht, the Netherlands ("ROF");

9.     COOPERATIEVE  RABOBANK MAASTRICHT e.o. U.A., a company incorporated under
       the laws of the Netherlands,  having its statutory seat in Maastricht and
       address  at  Van   Hasseltkade   20  (6211  CD)   Maastricht   ("Rabobank
       Maastricht");

Party  2 up to  and  including  7 are  hereinafter  jointly  referred  to as the
"Companies";

Party  3 up to  and  including  7 are  hereinafter  jointly  referred  to as the
"Subsidiaries";

Party  1 up to  and  including  9 are  hereinafter  jointly  referred  to as the
"Parties" and each of them a "Party".

WHEREAS:

A.     On the date hereof the Lender and the  Borrower  have entered nto a share
       purchase  agreement pursuant to which the Lender has accepted to sell and
       the  Borrower  has agreed to purchase  all of the issued and  outstanding
       shares of CompX Europe B.V. (the "SPA");

B.     It is a condition  under the SPA that the  Borrower  and the Lender enter
       into this  Agreement  on the  Completion  Date (as  defined  in the SPA),
       pursuant to which the Borrower  confirms to the Lender that the principal
       amount  owed to the  Lender  amounts  to USD  4,179,200  (the  "Principal
       Facility");

C.     For the purposes of acknowledgment  (and evidencing) an agreement between
       on the one hand ROF and  Rabobank  Maastricht  and on the other  hand the
       parties  listed  under 1 up to and  including  7 of the  preamble of this
       Agreement, this Agreement is also signed by ROF and Rabobank Maastricht;

D.     The  Borrower  promises  and  undertakes  towards  the  Lender to pay the
       Principal  Facility in accordance  with the terms and  conditions of this
       Agreement.

NOW IT IS HEREBY AGREED AS FOLLOWS:

Clause 1. The facility

Subject to the terms and conditions of this Agreement, the Borrower promises and
undertakes towards the Lender to repay the Principal Facility.

Clause 2. Interest rate

2.1    The interest rate  applicable  to the Principal  Facility is 7,0 per cent
       (%)  per  annum.  Interest  shall  be  calculated  on  the  basis  of the
       outstanding  balance of the Principal  Facility and shall accrue from day
       to day,  and be  calculated  on the  basis  of a year of 360 days and the
       actual number of days elapsed.

2.2    Accrued interest on the Principal  Facility is payable by the Borrower on
       31 December 2008 ("Interest  Payment Date").  For the avoidance of doubt,
       the claim for payment of accrued  interest on the  Principal  Facility is
       subordinated in accordance with Clause 8 of this Agreement.

Clause 3. Repayment

3.1    The Borrower  undertakes to repay and shall repay the Principal  Facility
       in  installments  on the dates and amounts set forth in this Clause 3, to
       the Lender.

         ----------------------------------------------------------------------
         Repayment Date                                   Installment
         ----------------------------------------------------------------------

         ----------------------------------------------------------------------
         31 December 2005                                 USD 1,306,000
         ----------------------------------------------------------------------
         31 December 2006                                 USD 1,306,000
         ----------------------------------------------------------------------
         31 December 2007                                 USD 1,306,000
         ----------------------------------------------------------------------
         31 December 2008                                 USD 261,200
         ----------------------------------------------------------------------

For the avoidance of doubt,  these installments may only be paid by the Borrower
and the claim  for  repayment  of the  Principal  Facility  is  subordinated  in
accordance with Clause 8 of this Agreement.

3.2    The  Borrower  may upon  giving the Lender at least 10  Business  Days (a
       Business  Day  means a day on which  banks are open in  Amsterdam)  prior
       written  notice  prepay the Lender  the whole of the  Principal  Facility
       together with interest  accrued  thereon.  Any notice of such  prepayment
       shall  be  irrevocable  and  shall  oblige  the  Borrower  to  make  such
       prepayment  on the  thirtieth  Business Day  following  such notice.  The
       Borrower  shall not be entitled to  reborrow  any amount so prepaid.  Any
       amount  prepaid  under  this  Clause  3.2 shall be  applied  against  the
       outstanding  balance of the  Principal  Facility.  For the  avoidance  of
       doubt,  the  Borrower  may only  prepay  the  Principal  Facility  or any
       interest accrued thereon in accordance with Clause 8 of this Agreement.

3.3    If a day on which any amount  under this  Agreement is due and payable is
       not a  Business  Day,  the day for  payment of such  amount  shall be the
       previous Business Day.

3.4    All sums  payable to the Lender  hereunder  shall be paid in full without
       set-off or  counterclaim  and free and clear of and without any deduction
       on account of any present or future  taxes,  levies,  duties,  charges or
       withholdings of any nature.

Clause 4. Representations and warranties

Each of the Companies  makes the  representations  and  warranties set out in is
Clause 4 for the benefit of the Lender on the date of this Agreement.

(i)    each  of the  Companies  is a  private  company  with  limited  liability
       (besloten vennootschap met beperkte  aansprakelijkheid) duly incorporated
       under the laws of the Netherlands and validly  existing under the laws of
       Netherlands;

(ii)   each of the Companies has the power to own its assets and to carry on its
       business as it is being conducted;

(iii)  each of the  Companies  has the power to enter into and perform,  and has
       taken all necessary corporate action to authorize the entry o performance
       and delivery of this Agreement;

(iv)   the entry into and performance by each of the Companies of this Agreement
       do not and will not: (i) conflict with any  applicable  law or regulation
       or judicial or official order,  (ii) conflict with each of their articles
       of association,  or (iii) conflict with any agreement or other instrument
       which is binding upon the Companies or any asset of the Companies.

(v)    no (potential)  event of default  (within the meaning of Clause 6 of this
       Agreement) is continuing or would result from the Companies entering into
       this Agreement;

(vi)   except for any security  rights given for the benefit of ROF and Rabobank
       Maastricht  under the  Finance  Documents  (as  defined  in Clause 8), no
       security  rights are in  existence  with respect to the assets over which
       security has been granted to the Lender pursuant to this Agreement;

(vii)  all   authorizations   required  in  connection   with  the  entry  into,
       performance,  validity and  enforceability  of this  Agreement  have been
       obtained or effected (as appropriate) and are in full force and effect;

(viii) the  Companies  are not aware of any facts or  circumstances,  which,  if
       known to the  Lender,  would  cause  the  Lender  not to enter  into this
       Agreement;

(ix)   no facts and/or  circumstances  have arisen which have a material adverse
       effect on the  business  and the  financial  condition  of the  Companies
       ("Material Adverse Effect");

(x)    the  Companies  have not taken any  corporate  action  nor have any other
       steps been taken or legal proceedings been started or threatened  against
       each  of the  Companies  for  its  winding-up,  dissolution  or  for  the
       appointment  of  a  receiver,  administrator,   administrative  receiver,
       trustee  or  similar  officer  of the  Companies  or of any or all of the
       Companies' assets or revenues.

Clause 5. Covenants

5.1    The Borrower shall notify the Lender of the occurrence of any event which
       results  in or  may  reasonably  be  expected  to  result  in  any of the
       representations  contained  in Clause 4 being  misleading  or untrue when
       made.

5.2    The Borrower  shall notify the Lender of any  potential  event of default
       and/or any actual  event of default  (within  the  meaning of Clause 6 of
       this Agreement) promptly upon its occurrence.

5.3    Each of the  Companies  shall at all times  comply  with its  obligations
       under this Agreement and shall promptly  notify the Lender of any failure
       by it to comply and of the  occurrence  of any event which would or might
       render it unable so to comply.

5.4    Each of the Companies shall not, without the prior written consent of the
       Lender,  create or permit to subsist any mortgage,  pledge, lien, charge,
       assignment or security  interest on any of its assets or revenues,  other
       than such mortgage, pledge, lien, charge, assignment or security interest
       created or  permitted  to  subsist  for the  benefit of ROF and  Rabobank
       Maastricht.

5.5    The Companies shall not merge or legally merge (juridisch fuseren), other
       than a merger between the  Subsidiaries,  consolidate with any company or
       enter into a legal  division  (juridische  splitsing),  without the prior
       written consent of the Lender.

5.6    The Borrower  shall ensure that at all times the claims  pursuant to this
       Agreement  ranks at least  pan  passu  with  all its  other  subordinated
       creditors  save  for the  preferred  claims  of the ROF and the  Rabobank
       Maastricht and those whose claims are preferred by law.

5.7    The  Companies  will take out and maintain  adequate  insurances  against
       risk,  which are  customarily  covered in the areas of  business in which
       each of the Companies is or may become active.

5.8    The Companies shall not without prior written consent of the Lender enter
       into any loan agreement, not as borrower or as lender, or provider in any
       other manner of debt to a third party,  other than the subordinated  loan
       agreements entered into by on the one hand, the Borrower and on the other
       hand,  respectively,  Familie Van Luyken B.V., Mr. W.A.P. Soudant, L.J.M.
       Moonen  Beheer B.V. and  Stichting  Werknemersparticipatie  Thomas Regout
       International  on the  Completion  Date (as  defined  in the SPA) for the
       aggregate  amount of EUR 200,000 and the  (subordinated)  loan agreements
       entered  into  between  the  Borrower  and the ROF  and/or  the  Rabobank
       Maastricht  nor shall the  Companies  grant any guarantee or security for
       any  indebtedness  of any of the other  Companies  on any of their assets
       other than those granted pursuant to this Agreement.

5.9    The Borrower shall submit to the Lender,  as soon as available and in any
       event not later  than six  months  after the end of its  financial  year,
       copies  of the  audited  (consolidated)  financial  statements  for  such
       financial year of each of the Companies.

5.10   The Borrower shall submit to the Lender,  as soon as available and in any
       event  not  later  than  15  Business   Days  after  each  month  of  the
       consolidated  financial statements,  consisting of the balance sheet, the
       profit and loss  statement  for the  current  month and the  year-to-date
       period and a cash flow statement for the  year-to-date  period of each of
       the Companies.

5.11   The Borrower shall from time to time at the request of the Lender, submit
       to the Lender within a reasonable  period of time, with such  information
       about the business and  financial  condition of each of the  Companies as
       the Lender may  require in order to  adequately  determine  its  position
       under this Agreement.

5.12   None of the  Companies  shall  without the prior  written  consent of the
       Lender alter, amend or modify or cause to be altered, amended or modified
       any of its agreements material to its business,  whereby any amendment or
       modification  which is not  related  to the  material  provisions  of the
       agreements falls outside the scope of this clause.

5.13   None of the  Companies  shall  dispose of any material  assets during the
       term of this Agreement without the prior written consent of the Lender.

5.14   The Companies  shall not  materially  change their  business as presently
       conducted during the term of this Agreement without prior written consent
       of the Lender.

5.15   The Borrower shall  forthwith  notify the Lender if and to the extent the
       Borrower has received a notification  (in writing or orally) from the ROF
       and/or the Rabobank Maastricht with respect to the financial covenants as
       stipulated in the debt financing.

Clause 6 Event of default

6.1    Each of the following events constitutes an event of default:

       (i)    the  Borrower  does not pay any  amount  payable  by it under this
              Agreement  in the manner and at the place at which it is expressed
              to be payable;

       (ii)   any  representation or warranty made in this Agreement shall prove
              to have been untrue or misleading;

       (iii)  any (other) loan or  indebtedness,  guarantee or other  obligation
              for borrowed moneys of the Borrower becomes prematurely  repayable
              or due following a default or if the Borrower  fails to pay on the
              due date (after  allowing for 15 Business  Days of grace) any loan
              indebtedness,  guarantee or other  obligation for borrowed  moneys
              and the result of the foregoing  would be materially and adversely
              affect the  ability of the  Borrower  to perform  its  obligations
              hereunder;

       (iv)   the  Borrower  ceases,  or  threatens  to  cease  to  carry on its
              business or substantially the whole of its business;

       (v)    the  Borrower  merges or legally  merges  (juridisch  fuseren)  or
              consolidates  with any  company  other  than the  Subsidiaries  or
              enters into a legal division (juridische  splitsing),  without the
              prior written consent of the Lender;

       (vi)   any  event or series of events  occurs  which,  in the  reasonable
              opinion of the Lender, might have a Material Adverse Effect;

       (vii)  the  Borrower:  () is  unable to pay its debts as they fall due in
              all events of insolvency  and  bankruptcy,  however,  defined,  or
              admits  inability to pay its debts as they fall due, (ii) suspends
              making  payments on all or any class of its debts or  announces an
              intention  to do so, or files for or is  granted a  moratorium  of
              payments  (surseance van betaling),  (iii) makes a proposal to one
              or  more  of its  creditors  with a view  to the  readjustment  or
              rescheduling of any of its indebtedness, (iv) is involved in legal
              proceedings  (or formal  steps have been taken to that extent) for
              the  liquidation or dissolution of the Borrower,  or (v) ceases to
              conduct its business as presently conducted;

       (viii) a  shareholders'  meeting  is  convened  of the  Borrower  for the
              purpose of  considering  any  resolution  for (or to petition for)
              filing bankruptcy (faillissement);

       (ix)   anyone  requests  the  competent  court to  declare  the  Borrower
              bankrupt (in staat van faillissement to verkiaren),  which request
              has not been dismissed within thirty days;

       (x)    the Borrower is declared bankrupt (failliet verklaard);

       (xi)   any  material  asset of any of the  Borrower  is  attached,  which
              attachment is not discharged within thirty days;

       (xii)  if the Borrower  violates any covenant made in this  Agreement and
              such  violation  has not been  remedied by the Borrower  within 15
              Business Days after giving notice by the Lender;

       (xiii) if a change of control of the Borrower or the Subsidiaries occurs.
              A change  of  control  means a change in the  shareholding  of the
              Borrower and/or the  Subsidiaries in excess of 10% and such change
              involves a party which is not a shareholder of the Borrower and/or
              each  and  any of the  Subsidiaries  on the  Completion  Date  (as
              defined in the SPA);

       (xiv)  no  repayment  has taken  place by the  Borrower  to the Lender in
              accordance with Clause 3 of this Agreement on two successive dates
              on which an installment is due as described in Clause 3.1 while in
              the same period any repayments  have taken place on two successive
              dates by the  Borrower  (and/or  any of the  Subsidiaries)  to ROF
              and/or Rabobank Maastricht under the Finance Documents (as defined
              in Clause 8).

6.2    Upon the  occurrence of an event of default  within the meaning of Clause
       6.1 and at any time  thereafter  for so long as such  event of default is
       continuing,  the Lender may, by notice to the  Borrower,  demand that the
       Principal Facility,  together with accrued interest and all other amounts
       accrued under this  Agreement be immediately  due and payable,  whereupon
       they shall  become  immediately  due and  payable.  For the  avoidance of
       doubt,  the  Borrower  may only pay any amount as a result of an event of
       default  (as  mentioned  in Clause  6.1) and the Lender  may only  demand
       and/or  receive  such  payment  in  accordance  with  Clause  8  of  this
       Agreement.

6.3    The events  described  in Clause 6.1 shall apply  accordingly  to any and
       each of the Subsidiaries.

Clause 7. Security

The  Borrower  shall in order to secure its  obligations  under  this  Agreement
provide second ranking right of pledge on the shares in CompX Europe B.V. to the
Lender. The Lender shall not commence, initiate or carry out any action directed
at an execution,  recovery and/or redress at the expense of the Borrower or take
any other form of  recourse  against  the  Borrower  without  the prior  written
consent of ROF.

Clause 8. Subordination

8.1    Lender  herewith  subordinates  all its present and future  claims on the
       Borrower (for the purpose of this clause  defined as Anchor  Holding B.V.
       and/or  any of its  subsidiaries  or any other  company  in which  Anchor
       Holding B.V.  has a direct or indirect  control)  under or in  connection
       with this  Agreement  (the  "Claims") to the present and future claims of
       ROF and Cooperatieve  Rabobank  Maastricht e.o. U.A.,  established at and
       having its place of business in Maastricht,  the  Netherlands  (hereafter
       jointly and severally referred to as the "Bank") on the Borrower pursuant
       to one or more Loan Agreements  and/or  Facility  Agreements the Bank and
       the  Borrower  have  entered  into  or  will  enter  into  (the  "Finance
       Documents")  provided any repayments  are made in accordance  with Clause
       8.2.

8.2    The claims of the Lender under this  Agreement  may be repaid if (i) such
       repayment  consists  of the  annual  repayment  in  accordance  with  the
       stipulations  of this  Agreement  and (ii)  ROF has  given  his  previous
       written consent to such a repayment. If Lender request for ROF's consent,
       ROF will decide on such request  within four weeks after having  received
       the unqualified annual report of the Borrower regarding the year to which
       the annual  repayments  relates (for the time to the year 2005).  ROF can
       only withhold his written consent if in relation to the Borrower (one of)
       the agreed  limits of the Cash Cover  Ratio,  the Total Net Debt / EBITDA
       Ratio and the ratio  between the  consolidated  solvency and the total of
       the balance as defined  below (the  "Agreed  Limits")  are/is or would be
       broken by the  annual  repayment.  If the latter is the case and the Bank
       considers  the Borrower in default under the Finance  Documents  then the
       annual payment due to the Lender shall be deferred until such time as the
       Borrower is in compliance with the Agreed Limits. Any annual payment that
       has been  deferred will  continue to accrue  interest in accordance  with
       Clause 2.1 except that such deferred payment will accrue interest at 10,0
       per cent (%) per annum  from the due date of the next  annual  payment if
       such  payment  has  not  been  made by the due  date of the  next  annual
       payment. The ratio's as mentioned in the above are defined as follows.

Cash Cover Ratio:    The   consolidated   (Anchor   Holding  BV)  result  before
                     corporation  tax,  amortisation of intangible fixed assets,
                     depreciation,  extraordinary  profit / loss,  total finance
                     costs (EBITDA)  minus  investments  in  (in)tangible  fixed
                     assets   less   disposal  at  net   bookvalue,   and  minus
                     corporation tax divided by the consolidated  total net cash
                     interest  charges  of Anchor  Holding  BV plus  contractual
                     standard  repayments  on  interest  bearing  debt (=  excl.
                     additional repayments caused by the Cash Sweep). This ratio
                     will be determined annually based on the unqualified annual
                     report.

Agreed Limit:        < 1,1, on a consolidated basis.

Total Net Debt/EBITDA Ratio:
                     the  total  consolidated  (Anchor  Holding  BV)  long  term
                     interest  bearing  debts of Anchor  Holding  BV  (excluding
                     subordinated  loans of seller  and  management  team)  plus
                     consolidated  short term  interest  bearing debt minus free
                     liquid  resources  divided  by the  consolidated  result of
                     Anchor Holding BV before  corporation tax,  amortisation of
                     intangibles,   depreciation,   extraordinary   profit/loss,
                     interest  income and cost.  This  ratio will be  determined
                     annually based on the unqualified annual report.

Agreed Limit:
                               2005               > 2,6
                               2006/2007          > 2,2
                               2008               > 1,4
                               2009               > 1,0

Solvency Agency:     the  consolidated  (Anchor Holding BV) risk bearing capital
                     of Anchor Holding  (including  subordinated loans of seller
                     and  management  team)  divided  by the total  consolidated
                     assets of Anchor  Holding.  This ratio  will be  determined
                     annualy based on the unqualified annual report.

Agreed Limit:        as from financial year 2005 < 20 % on a consolidated basis.

For the  purpose  of  computing  the  compliance  with the  Agreed  Limits,  the
calculation  shall be  completed  by the Bank  utilizing  the  annual  statutory
accounts of the  Borrower,  to be submitted to the Bank no later than on 1 March
of each  respective  year.  If  submission  does not take place by the  Borrower
before each of the above respective dates and consequently the annual payment is
delayed the accrued interest on the deferred annual payment will be continued at
10,0 per cent (%) per annum from 1 April of each respective year.

8.3    Parties acknowledge the subordination as mentioned under 8.1 and will act
       accordingly.  The Borrower shall make no payment whatsoever to the Lender
       in relation to any Claim and the Lender will claim and/or  receive  none,
       except as provided for in this Agreement.

8.4    The Lender undertakes  towards the Bank, which accepts this,  without the
       prior written  approval of the Bank, which approval will not unreasonably
       be withheld,  not to ask or accept  repayment or prepayment of any of the
       Claims  in  part or in  whole  (other  than  those  provided  for in this
       Agreement,  for which that article contains a provision),  not to set off
       nor  encumber  these  claims and not to ask or accept  security for these
       claims,  as long as the bank has or may have any claims under the Finance
       Documents.

8.5    The  Borrower  and the  Lender  each  warrant  towards  the Bank that the
       information  which each of them have  provided  to the Bank in respect of
       this Subordinated Loan Agreement, correctly and completely reflects their
       mutual (legal) relationship concerning this Agreement.

8.6    The subordination as mentioned in this Clause will terminate upon written
       notification of release by the Bank to the Lender.

8.7    The Borrower shall pay any and all reasonable  costs  associated with the
       conclusion,  performance and execution of the subordination  mentioned in
       this Clause,  including the costs of litigation  and internal or external
       costs of legal assistance, regardless whether these reasonable costs have
       been made towards the Borrower or third parties.

8.8    Non compliance by the Borrower of their  obligations  under this Clause 8
       constitutes  an event of  default  under (at  least  one of) the  Finance
       Documents.

8.9    The  subordination  as mentioned in this Clause does not affect the power
       of the  Bank  to  extend  existing  loans  or  credit  facilities  to the
       Borrower,  to reduce or  increase  any Loan or  Facility  or to amend the
       terms  of (any of) the  Finance  Documents,  to  request  for  additional
       security or release existing other security.

8.10   The  Lender  and the  Borrower  shall not  alter,  amend or  change  this
       Subordinated Loan Agreement in any way without a previous written consent
       by the Bank.

Clause 9. Miscellaneous

9.1    The headings in this Agreement are for convenience only and do not affect
       the  interpretation  of this  Agreement.  References in this Agreement to
       Clauses and  Schedules  are  references  to Clauses and Schedules of this
       Agreement.

9.2    In case of  conflict  between  Dutch  legal  concepts  mentioned  between
       brackets and/or in italics in this Agreement and the English  translation
       thereof  as used in this  Agreement,  the  Dutch  text,  and its  meaning
       thereof under Dutch law, will prevail.

9.3    If any provision of this Agreement  should be invalid or in any other way
       unenforceable,  such provision shall be ineffective only to the extent of
       such  unenforceability  or  invalidity  and  shall in no way  affect  the
       enforceability  or validity of the remainder of such provision nor of the
       other provisions of this Agreement. In that event the parties shall after
       mutual consultation amend such provision,  taking into account the spirit
       of  the  Agreement,   and  replace  the  provision  that  is  invalid  or
       unenforceable  by a provision that resembles the invalid or unenforceable
       provision as closely as possible.

9.4    No failure on the part of any party to this Agreement to exercise, and no
       delay in  exercising,  any right  under this  Agreement,  in the event of
       breach of contract by any party hereto,  will operate as a waiver of such
       right under this Agreement.

9.5    The parties to this  Agreement  waive their right to rescind  (ontbinden)
       this Agreement under section 6:265 et seq. Dutch Civil Code.

Clause 10. Assignment and transfer

10.1   The  Companies  may  not  assign  or  transfer  any of  their  rights  or
       obligations under this Agreement.

10.2   The Lender may at any time:

       (i)    assign  all or any part of its  rights  and  benefits  under  this
              Agreement  to any of its group  companies  as  defined  in section
              2:24b of the Dutch Civil Code; or

       (ii)   transfer by way of substitution of contract  (contractsoverneming)
              accordance  with  Clause  10.3 all of its rights  and  obligations
              under this  Agreement to any of its group  companies as defined in
              section 2:24b of the Dutch Civil Code.

10.3   Any  transfer  by the  Lender of its rights  and  obligations  under this
       Agreement   shall  be  effected  in   accordance   with  the   applicable
       requirements  of Dutch law (including but not limited to section 6:159 of
       the Dutch  Civil  Code) and any other  applicable  laws and the  assignee
       shall  confirm in  writing  prior to the  assignment  to the Bank and the
       Companies  that  it  assumes  the  rights  and  obligations   under  this
       Agreement. The Companies and the Bank hereby irrevocably grant in advance
       their cooperation to transfer described in Clause 10.2.

10.4   If any of the previous  Clauses  allow of any  assignment  or transfer of
       rights, the Lender shall not assign of transfer any of all of its rights,
       claims,  obligations  and/or debts under the Subordinated  Loan Agreement
       without a previous written consent by the Bank.  However,  the Lender may
       at any time assign his rights and/or  obligations  under the Subordinated
       Loan Agreement to one of its group companies.  The Companies and the Bank
       hereby  irrevocably  grant in advance their  cooperation  to the transfer
       described in this clause.

Clause 11. Notices

All notices or other  communications  under or in connection with this Agreement
shall be sent by registered mail or fax to the following addresses:  With regard
to CompX International Inc:

Address:                   Three Lincoln Centre, Suite 1700
                           5430 LBJ Freeway
                           Dallas, Texas, USA 75240

Attn. D.R. Halbert

Fax                        +1 972 448 1419

With regard to Anchor Holding B.V. (also on behalf of the Subsidiaries):

Address                    Industrieweg 40
                           6219 NR Maastricht

Attn. Mr. J.M.B.J. van Luyken

Fax                        +3143351 66 99

With regard to Rabobank Overname Finacierinq B.V.:

Address                    P.O. Box 17100
                           3500 HG Utrecht

Fax                        +31 30 216 17 02

With regard to Cooperatieve Rabobank Maastricht en omstreken U.A.:

Address                    Van Hasseltkade 20
                           6211 CD Maastricht

Fax                        +3143 328 18 41

Clause 12.        Governing law and competent court

12.1   This Agreement  shall be construed in accordance  with and be governed by
       the laws of the Netherlands.

12.2   In the  event of a  dispute  arising  out of or in  connection  with this
       Agreement or further agreements  resulting thereof,  the parties will use
       their best efforts to resolve the matter  amicably  before  referring the
       matter to court as meant in

12.3   All disputes that should arise in connection with this  Agreement,  or of
       agreements relating thereto, shall be submitted to the competent court in
       Amsterdam.

CompX Europe B.V.
Name:
Title:

Thomas Regout Holding B.V.
Name:
Title:

Thomas Regout Nederland B.V.
Name:
Title:

Thomas Regout B.V.
Name:
Title:

Thomas Regout International B.V.
Name:
Title:

Rabobank Overname Financiering B.V.
Name:
Title:

Co6peratieve Rabobank Maastricht en omstreken U.A.
Name:
Title:

Thus agreed and signed in twofold on 24 January 2005. CompX International Inc.

CompX International Inc.
Name:
Title:

Name:
Title:

Anchor Holding B.V.
Name:
Title:

Name:
Title:TAX AGREEMENT
                                     BETWEEN
                               NL INDUSTRIES, INC.
                                       AND
                            COMPX INTERNATIONAL INC.

       This Agreement is executed on October 5, 2004 but effective as of October
1, 2004 by and among NL Industries,  Inc. ("NL"), a Delaware  corporation having
its principal executive offices at Three Lincoln Centre, 5430 LBJ Freeway, Suite
1700,  Dallas,  Texas  75240,  Contran  Corporation   ("Contran"),   a  Delaware
corporation having its principal executive offices at Three Lincoln Centre, 5430
LBJ  Freeway,  Suite  1700,  Dallas,  Texas 75240 and CompX  International  Inc.
("CompX"),  a Delaware  corporation  having its principal  executive  offices at
Three Lincoln Centre, 5430 LBJ Freeway, Suite 1700, Dallas, Texas 75240.

                                    Recitals

       A. NL and CompX are  eligible  to file  consolidated  returns  of federal
income taxes and, subject to certain jurisdictional limitations, will be subject
to, or  continue  to be  subject  to,  combined  state  and local tax  reporting
effective October 1, 2004.

       B. NL and CompX wish to provide for the  allocation of  liabilities,  and
procedures to be followed, with respect to federal income taxes of CompX and any
subsidiaries of CompX and with respect to certain  combined  foreign,  state and
local taxes on the terms of this Agreement.

                                    Agreement

       The parties hereto agree as follows:

       Section 1.  Definitions.  As used in this Agreement,  the following terms
have the meanings set forth below:

              (a) Code: The Internal Revenue Code of 1986, as amended,  and with
       respect to any section thereof any successor  provisions  under such Code
       or any successor Code.

              (b) Combined Foreign, State and Local Taxes: For a taxable period,
       the  amount of all  foreign,  state and local  taxes,  together  with all
       interest and  penalties  with  respect  thereto,  for which  liability is
       computed (1) on the basis of a combined,  unitary or consolidated  return
       (whether at the  initiative  of the tax authority or of the taxpayer) and
       (2) by reference  to one or more members of the CompX Group,  one or more
       members of the NL Group and one or more members of the Contran  Group not
       included in the CompX Group.

              (c) Contran Corporation: A Delaware corporation that is the common
       parent of a group of corporations electing to file a consolidated federal
       income tax return and certain combined state and local returns.

              (d) Federal  Taxes:  All federal  income taxes,  together with all
       interest and penalties with respect thereto.

              (e) NL Group: NL and those of its direct and indirect subsidiaries
       which join in the filing of a consolidated federal income tax return with
       its  common  parent,  Contran  (the  "Contran  Group"),  as such Group is
       constituted  from time to time.  For purposes of this  Agreement  (to the
       extent related to Combined Foreign,  State and Local Taxes), the term "NL
       Group"  shall  include all direct and  indirect  subsidiaries  of NL with
       reference  to  which  Combined   Foreign,   State  and  Local  Taxes  are
       determined.

              (f) CompX  Group:  CompX  International  Inc.  and each  direct or
       indirect  subsidiary  of CompX which  would be a member of an  affiliated
       group,  within the meaning of section 1504(a) of the Code, of which CompX
       was the common parent,  as such Group is  constituted  from time to time.
       For  purposes  of this  Agreement  (to the  extent  related  to  Combined
       Foreign,  State and Local Taxes) , the term "CompX  Group" shall  include
       all direct and  indirect  subsidiaries  of CompX with  reference to which
       Combined, Foreign, State and Local taxes are determined.

              (g) CompX Group Tax Liability: For a taxable period, the liability
       for  Federal  Taxes and  Combined  Foreign,  State and  Local  taxes,  as
       applicable,  that the CompX  Group would have had if it were not a member
       of the NL Group or the  Contran  Group  during  such  taxable  period (or
       during any taxable  period prior  thereto),  and instead filed a separate
       consolidated return for such taxable period (and during all prior taxable
       periods  beginning after October 1, 2004);  provided,  however,  that for
       purposes  of  determining  such  liability  for a taxable  period all tax
       elections  shall be consistent with the tax elections made by Contran for
       such period.  In making such tax elections it is  understood  the Contran
       Group will make those tax  elections  that are  beneficial to the Contran
       Group on a consolidated  basis.  Nevertheless,  Contran will use its best
       efforts in the case of those  elections  which affect the  computation of
       the CompX Group Tax Liability,  to make elections in a reasonable  manner
       so as to minimize the CompX Group Tax Liability.

       Section  2.  Contran  as Agent.  Contran  shall be the sole agent for the
CompX Group in all matters relating to the CompX Group Tax Liability.  The CompX
Group shall not (a) terminate such agency or (b) without the consent of Contran,
participate,  or attempt to  participate,  in any  matters  related to the CompX
Group Tax Liability, including, but not limited to, preparation or filing of, or
resolution of disputes,  protests or audits with the Internal  Revenue  Service,
state or local taxing authorities  concerning,  the Contran Group's consolidated
returns of Federal Taxes, returns of Combined Foreign,  State and Local Taxes or
the CompX Group Tax  Liability  with  respect  thereto  for any  taxable  period
beginning  after  October 1, 2004.  The CompX  Group  shall  cooperate  fully in
providing  Contran with all information and documents  necessary or desirable to
enable  Contran  to  perform  its  obligations  under  this  Section,  including
completion  of  Internal  Revenue  Service  and  state or local  tax  audits  in
connection with such CompX Group Tax Liability and  determination  of the proper
liability for such CompX Group Tax Liability.

       Section 3. Liability for Taxes; Refunds.

              (a)  NL,  as the  common  parent  of the  CompX  Group,  shall  be
       responsible  for,  and shall pay to  Contran  or a taxing  authority,  as
       applicable,  the  consolidated tax liability for the NL Group and has the
       sole right to any refunds received from Contran or a taxing authority, as
       applicable,  subject  to  the  provisions  of  Sections  5 and 6 of  this
       Agreement.

              (b) Notwithstanding  any other provision of this Agreement,  CompX
       and each  subsidiary  of CompX which is a member of the CompX Group shall
       be severally liable to NL for the CompX Group Tax Liability.

              (c) CompX  shall  indemnify  NL and hold it and the NL Group other
       than the CompX Group,  harmless  from and against any  deficiency  in the
       CompX Group Tax Liability that may be due to NL.

              (d) NL  shall  indemnify  CompX  and hold it and the  CompX  Group
       harmless from and against any Federal Taxes and Combined  Foreign,  State
       and Local Taxes  attributable  to the NL Group or any other member of the
       Contran Group,  other than the CompX Group,  as such taxes are determined
       under this and other tax sharing agreements.

       Section 4. Tax  Returns.  NL shall file on behalf of the CompX  Group any
and all federal,  foreign, state and local tax returns that are required as they
pertain to the CompX Group Tax  Liability.  The CompX  Group,  at NL's  request,
shall join in any  applicable  consolidated  returns  of  Federal  Taxes and any
returns of  Combined  State and Local  Taxes (for  which  returns  have not been
theretofore  filed) and  execute  its consent to each such filing on any form as
may be prescribed for such consent if such consent is required.  The decision of
NL's Tax Director(or any other officer so designated by NL) with  responsibility
for tax matters shall,  subject to the provisions of this Agreement,  be binding
in any dispute  between NL and the CompX Group as to what tax position should be
taken with respect to any item or transaction of the CompX Group.  The preceding
sentence  is  limited  to the tax  positions  that  affect  the CompX  Group Tax
Liability  and the  combined NL Group and Contran  Group.  In  addition,  NL and
members of the NL Group,  including CompX and members of the CompX Group,  shall
provide each other with such cooperation,  assistance and information as each of
them may  request  of the other with  respect  to the filing of any tax  return,
amended  return,  claim for refund or other document with any taxing  authority.
CompX  shall be solely  responsible  for all taxes due for the CompX  Group with
respect to tax  returns  filed by CompX or a member of the CompX  Group that are
required to be filed on a separate company basis, independent of NL.

       Section 5. Payment of CompX Group Tax Liability for Federal Taxes.  On or
before each date, as determined  under section 6655 of the Code,  for payment of
an installment of estimated Federal Taxes, CompX shall pay to NL an amount equal
to the  installment  which the CompX Group would have been required to pay as an
estimated  payment of Federal Taxes to the Internal  Revenue  Service if it were
filing a  separate  consolidated  return  in  respect  of the  CompX  Group  Tax
Liability.  Any balance owed with respect to the CompX Group Tax  Liability  for
such  taxable  period shall be paid to NL on or before the 15th day of the third
month after the close of such taxable period. If it is not possible to determine
the amount of such  balance on or before  such day,  (a) a  reasonable  estimate
thereof  shall be paid on or before  such day,  (b) the  amount of such  balance
shall be finally determined on or before the earlier of; (i) the 15th day of the
ninth  month after the close of such  taxable  period and (ii) the date on which
the consolidated tax return  containing the CompX Group for such period is filed
with the Internal Revenue Service,  and (c) any difference between the amount so
determined  and  the  estimated  amount  paid  shall;  (i)  in  the  case  of an
underpayment,  be promptly paid to NL and (ii) in the case of an overpayment, be
promptly refunded or applied against the estimated CompX Group Tax Liability for
the immediately following tax period, at the option of NL. If the overpayment is
not applied to the immediately  following tax period,  such overpayment shall be
promptly  refunded to the CompX Group. As between the parties to this Agreement,
the CompX Group shall be solely  responsible  for the CompX Group Tax  Liability
and  shall  have no  responsibility  for  Federal  Taxes  of the NL Group or the
Contran  Group other than payment of the CompX Group Tax Liability in accordance
with the terms of this Agreement.

       Section 6. Refunds for CompX Group Losses and Credits for Federal  Taxes.
If the  calculation  with respect to the CompX Group Tax  Liability  for Federal
Taxes results in a net  operating  loss ("NOL") for the current tax period that,
in the absence of a Code Section 172(b)(3) election made by Contran,  is carried
back under Code  Sections 172 and 1502 to a prior  taxable  period or periods of
the CompX Group with respect to which the CompX Group  previously  made payments
to NL, then,  in that event,  NL shall pay (or credit)  CompX an amount equal to
the tax refund to which the CompX Group would have been  entitled  had the CompX
Group filed a separate consolidated federal income tax return for such year (but
not in excess of the net aggregate  amount of the CompX Group Tax Liability paid
to NL with respect to the preceding  two taxable  periods).  If the  calculation
with respect to the CompX Group Tax Liability  results in an NOL for the current
tax period, that subject to the Code Section 172(b)(3) election made by Contran,
is not carried back under Code Sections 172 and 1502 to a prior  taxable  period
or periods of the CompX Group with respect to which CompX made payments to NL or
is not carried back because the Contran Group does not have a  consolidated  net
operating loss for the current tax period, then, in that event such NOL shall be
an NOL  carryover  to be used in  computing  the CompX Group Tax  Liability  for
future taxable  periods,  under the law applicable to NOL carryovers in general,
as such law applies to the relevant  taxable period.  Furthermore,  if the CompX
Group would have been entitled to a refund of Federal Taxes for any year had the
CompX Group filed a separate consolidated federal income tax return for the loss
year and the carryback  year, NL shall pay to CompX the amount which CompX would
have  received as a refund from the  Internal  Revenue  Service.  Payments  made
pursuant  to this  Section  6 shall be made on the  date  that  Contran  (or any
successor  common parent of a tax group to which the NL Group is a member) files
its  consolidated  federal  income tax return for the taxable  period  involved.
Principles  similar to those discussed in this Section 6 shall apply in the case
of the utilization of all CompX Group loss and credit carrybacks and carryovers.

       Section 7. Payment of CompX Group Tax  Liability  for Foreign,  State and
Local Taxes. The foregoing  principles contained in Sections 5 and 6 shall apply
in similar fashion to any consolidated or combined foreign, state or other local
income tax returns,  containing any member of the NL Group and any member of the
CompX Group that is not also a member of the NL Group, which may be filed.

       Section 8.  Subsequent  Adjustments.  If any settlement with the Internal
Revenue Service,  foreign,  state or local tax authority or court decision which
has become final  results in any  adjustment  to any item of income,  deduction,
loss or credit to the NL Group in respect of any taxable  period subject to this
Agreement,  which,  in any such  case,  affects  or relates to any member of the
CompX Group as  constituted  during  such  taxable  period,  the CompX Tax Group
Liability  shall be  redetermined to give effect to such adjustment as if it had
been made as part of or reflected in the original  computation  of the CompX Tax
Group  Liability  and proper  adjustment  of amounts paid or owing  hereunder in
respect  of such  liability  and  allocation  shall  be  promptly  made in light
thereof.

       Section  9.  Amendments.   This  Agreement  may  be  amended,   modified,
superseded or cancelled,  and any of the terms,  covenants, or conditions hereof
may be  waived,  only by a written  instrument  specifically  referring  to this
Agreement  and executed by both  parties (or, in the case of a waiver,  by or on
behalf of the party waiving compliance). The failure of either party at any time
or times to require  performance of any provision of this Agreement  shall in no
manner affect the right at a later time to enforce the same. No waiver by either
party of any condition,  or of any breach of any term or covenant,  contained in
this Agreement, in any one or more instances, shall be deemed to be or construed
as a further or continuing  waiver of any such condition or breach,  or a waiver
of any other condition or of any breach of any other term or covenant.

       Section 10.  Retention of Records.  NL shall retain all tax returns,  tax
reports,  related  workpapers  and all schedules  (along with all documents that
pertain to any such tax returns, reports or workpapers) that relate to a taxable
period in which the CompX Group is included in a  consolidated  or combined  tax
return  with NL. NL shall  make such  documents  available  to CompX at  CompX's
request. NL shall not dispose of such documents without the permission of CompX.

       Section 11. Headings.  The headings of this Agreement are for convenience
of reference only, and shall not in any way affect the meaning or interpretation
of this Agreement.

       Section 12. Governing Law. This Agreement shall be construed and enforced
in  accordance  with the laws of the  State of  Delaware  without  regard to its
conflicts of laws provisions.

       Section  13.  Counterparts.  This  Agreement  may be executed in multiple
counterparts,  each of  which  shall  be an  original,  but all of  which  shall
constitute but one agreement.

       Section 14. Successors. This Agreement shall be binding upon and inure to
the benefit of the parties hereto and their respective  subsidiaries,  and their
respective successors and assigns.

       Section 15.  Effective  Date.  This  Agreement  shall be  effective as of
October 1, 2004.

<PAGE>

       IN WITNESS  WHEREOF,  the parties  hereto have executed this Agreement on
October 5, 2004 but effective October 1, 2004.

                            NL INDUSTRIES, INC.

                            By:
                                 ---------------------------------------------
                                 Kelly D. Luttmer
                                 Tax Director
[Seal]

ATTEST:

                            CONTRAN CORPORATION

                            By:
                                ----------------------------------------------
                                William J. Lindquist
                                Senior Vice President

[Seal]

ATTEST:

                            COMPX INTERNATIONAL INC.

                            By:
                                 --------------------------------------------
                                 Darryl R. Halbert
                                 Vice President, Chief Financial Officer and
                                 Controller

[Seal]

ATTEST:

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