Document:

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                                                                     EXHIBIT 4.2

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                     TENARIS PREMIUM CONNECTIONS TECHNOLOGY

                                LICENSE AGREEMENT

                                 BY AND BETWEEN

                             TENARIS CONNECTIONS BV.

                                       AND

                          TUBOS DE ACERO DE MEXICO S.A.

                               DATED JULY 10, 2002

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                                TABLE OF CONTENTS

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ARTICLE 1. DEFINITIONS.........................................................................................      1

ARTICLE 2. LICENSE.............................................................................................      1

     Section 2.1      Granting of Licenses.....................................................................      1
                  Subsection 2.1.1          Threading and Reconstruction of Full Length Products...............      1
                  Subsection 2.1.2          Threading and Reconstruction of Accessory Equipment................      2
                  Subsection 2.1.3          Sale of threaded Products and Accessory Equipment..................      2
                  Subsection 2.1.4          Use of Trademarks..................................................      2
                  Subsection 2.1.5          Threading and Sale of Tenaris Premium Connections on
                                            full length tubulars not manufactured by Tenaris...................      2
     Section 2.2      Infringements............................................................................      2
     Section 2.3      Use of Products by End Users.............................................................      3

ARTICLE 3. PAYMENTS............................................................................................      3

     Section 3.1      Royalties................................................................................      3
     Section 3.2      Payment of Royalties.....................................................................      3
     Section 3.3      Taxes....................................................................................      3
     Section 3.4      Records..................................................................................      4
     Section 3.5      Reports..................................................................................      4
     Section 3.6      Right to Audit...........................................................................      4

ARTICLE 4. CONFIDENTIAL INFORMATION............................................................................      4

     Section 4.1      Delivery of Proprietary Documentation....................................................      4
     Section 4.2      Exchange of Confidential Information.....................................................      5

ARTICLE 5. MARKING PRODUCTS....................................................................................      5

     Section 5.1      Obligation to Mark.......................................................................      5
     Section 5.2      Use of Trademarks........................................................................      6

ARTICLE 6. BUSINESS AND TECHNOLOGY INFORMATION; TOOLING AND GAUGES; TRAINING OF PERSONNEL; IMPROVEMENTS........      6

     Section 6.1      Obligation to Provide Business and Technical Information.................................      6
     Section 6.2      Tooling and Gauges.......................................................................      6
     Section 6.3      Right to Inspect Gauges..................................................................      7
     Section 6.4      Maintenance of Gauges; Liability for damages.............................................      7
     Section 6.5      Training of Personnel....................................................................      7
     Section 6.6      Availability of Specialists..............................................................      7
     Section 6.7      Field Service............................................................................      8
     Section 6.8      Customer Qualification Tests.............................................................      8
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                                TABLE OF CONTENTS
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     Section 6.9      Maintenance of Information, Gauges and Tooling...........................................      8
     Section 6.10     Breach of Maintenance and Non Disclosure Obligation......................................      8
     Section 6.11     Sales Literature.........................................................................      8
     Section 6.12     Licensee Improvements....................................................................      9

ARTICLE 7. PRODUCT QUALITY AND PERFORMANCE.....................................................................      9

     Section 7.1      Compliance Obligations...................................................................      9
     Section 7.2      Certification to Thread..................................................................      9
     Section 7.3      Licensee Evaluation Questionnaire........................................................     10
     Section 7.4      Obligation to Provide Access to Licensee's facilities....................................     10
     Section 7.5      Quality Problems.........................................................................     10

ARTICLE 8. WARRANTY............................................................................................     10

     Section 8.1      Warranty.................................................................................     10
     Section 8.2      Exclusion of Tooling.....................................................................     10
     Section 8.3      Warranty to Customers....................................................................     11

ARTICLE 9. INDEMNITY...........................................................................................     11

ARTICLE 10. EXCLUSION OF CONSEQUENTIAL AND OTHER INDIRECT DAMAGES..............................................     12

ARTICLE 11. TERM AND TERMINATION...............................................................................     12

     Section 11.1     Duration.................................................................................     12
     Section 11.2     Early Termination by Tenaris.............................................................     12
     Section 11.3     Completion of Pending Works by Licensee..................................................     12
     Section 11.4     Insolvency...............................................................................     12
     Section 11.5     Termination for Default..................................................................     13
     Section 11.6     Effect of Termination....................................................................     13

ARTICLE 12. NOTICES............................................................................................     13

ARTICLE 13. APPROVALS..........................................................................................     14

     Section 13.1     Registration of the Agreement............................................................     14
     Section 13.2     Cooperation to Obtain Approvals and Licenses.............................................     14

ARTICLE 14. FORCE MAJEURE......................................................................................     14

ARTICLE 15. GOVERNING LAW; DISPUTE RESOLUTION..................................................................     15

     Section 15.1     Governing Law............................................................................     15
     Section 15.2     Dispute Resolution.......................................................................     15
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ARTICLE 16. ASSIGNMENT, SUBLICENSING AND SUB CONTRACTING.......................................................     16

     Section 16.1     Assignment...............................................................................     16
     Section 16.2     No Sub-Licensing or sub-contracting by Licensee..........................................     16

ARTICLE 17. MISCELLANEOUS......................................................................................     16

     Section 17.1     Severability.............................................................................     16
     Section 17.2     Non Waiver...............................................................................     16
     Section 17.3     Entire Agreement.........................................................................     17
     Section 17.4     Headings.................................................................................     17
     Section 17.5     Choice of Language.......................................................................     17
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                     TENARIS PREMIUM CONNECTIONS TECHNOLOGY
                                LICENSE AGREEMENT

This Tenaris Premium Connections Technology License Agreement (this "Agreement")
is entered into as of July 10, 2002, by and between Tenaris Connections BV, a
corporation organized and existing under the laws of The Netherlands, having its
offices at Shiphol Boulevard 271, 1118 BH, Luchthaven Shiphol, Amsterdam
(hereinafter referred to as "Tenaris") and Tubos de Acero de Mexico S.A., a
corporation organized and existing under the laws of Mexico, having its
principal place of business at Km 433,5 Carretera Mexico-Xalapa, Veracruz,
Mexico (hereinafter "Licensee").

WHEREAS, Tenaris owns certain technical information and know-how, relating to
the Threading and Reconstruction of Tenaris Premium Connections, and certain
trademarks, commercial names and other designations used in connection with the
manufacture and sale of Tenaris Premium Connections;

WHEREAS, Licensee is in the business of providing products and services to the
oil and gas drilling industry;

WHEREAS, Tenaris is willing to grant technology, and trademark licenses and to
provide technical assistance to Licensee under certain conditions;

NOW THEREFORE, in consideration of the premises and of the covenants and
undertakings of the Parties herein below, the sufficiency of which is hereby
acknowledged, Tenaris and Licensee agree as follows:

                             ARTICLE 1. DEFINITIONS

Unless otherwise defined or the context otherwise requires, capitalized terms
shall have the meanings assigned to them in Schedule "A".

                               ARTICLE 2. LICENSE

SECTION 2.1       GRANTING OF LICENSES.

Subject to the terms and conditions of this Agreement Tenaris hereby grants
Licensee the following licenses:

Subsection 2.1.1           Threading and Reconstruction of Full Length Products

         A non-exclusive license (without right to sub-license) to Thread and
         Reconstruct Tenaris Premium Connections on full length Products of all
         grades in the Territory.

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Subsection 2.1.2           Threading and Reconstruction of Accessory Equipment

         A non-exclusive license (without right to sub-license) to Thread and
         Reconstruct Accessory Equipment with Tenaris Premium Connections of all
         grades in the Territory..

Subsection 2.1.3           Sale of threaded Products and Accessory Equipment

         A non-exclusive license (without right to sub-license) to sell
         Worldwide Products and Accessory Equipment Threaded with Tenaris
         Premium Connections in accordance with this Agreement.

Subsection 2.1.4           Use of Trademarks

         A non-exclusive license to use Trademarks for the sale and marketing of
         Tenaris Premium Connections on Products and Accessory Equipment that
         have been Threaded or Reconstructed with Tenaris Premium Connections.

Subsection 2.1.5           Threading and Sale of Tenaris Premium Connections on
                           full length tubulars not manufactured by Tenaris

         Licensee shall not Thread, Reconstruct or sell Tenaris Premium
         Connections on full length tubulars not manufactured by either Siderca
         S.A.I.C., Tubos de Acero de Mexico S.A., Dalmine S.p.A., NKKTubes,
         Tubos de Acero de Venezuela S.A. or Algoma Seamless Tubulars or their
         respective affiliates, unless expressly authorized by Tenaris in
         writing.

SECTION 2.2       INFRINGEMENTS

(a)      Tenaris covenants not to bring suit against Licensee for infringement
         of any Patent arising from Licensee's performance in strict accord with
         this Agreement.

(b)      Tenaris shall be primarily responsible for the defense of any
         infringement claims made against Licensee relating to the use of the
         Technology, Patents or Trademarks. Licensee shall promptly give notice
         to Tenaris if Licensee becomes aware of any possible infringement of
         the Technology, Patents or Trademarks in the Territory. Licensee shall
         have no right to bring any action asserting any infringement of the
         Technology, Patents or Trademarks without the prior consent of Tenaris.
         Tenaris shall be entitled to participate and control such actions.
         Licensee shall not be entitled to take any action that would adversely
         affect the right or validity of any Patent, Technology or Trademarks
         without the prior consent of Tenaris, which may be withheld in its sole
         and absolute discretion.

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SECTION 2.3       USE OF PRODUCTS BY END USERS

Use of Products and Accessory Equipment by end users (drilling contractors, oil
companies and other similar users) is not restricted by this Agreement and such
end users may use and transfer such Products and Accessory Equipment freely
throughout the world without restriction hereunder.

                              ARTICLE 3. PAYMENTS

SECTION 3.1       ROYALTIES

In consideration of the licenses granted herein, Licensee agrees to pay Tenaris
royalty amounts set forth in Schedule "B".

SECTION 3.2       PAYMENT OF ROYALTIES

Royalty payments shall accrue with respect of any Tenaris Premium Connection
Threaded or Reconstructed pursuant to this Agreement at the moment of its
Threading Royalties shall be paid in U.S. Dollars by deposit in the bank account
previously designated by Tenaris in writing. Royalties shall be paid within 60
(sixty) calendar days of the end of each calendar quarter in which Tenaris
Premium Connections have been Threaded. If Licensee fails to make payment within
such period of time (or fails to report the number of Tenaris Premium
Connections Threaded during a calendar quarter), interest on the unpaid amount
shall be due in addition to the principal at the three-month London Interbank
Offered Rate for U.S. dollars in effect at the time, plus 5 (five) percentage
points, until payment is made in full. If the delay in the payment of Royalties
extends for more than 90 days, Tenaris shall be entitled to terminate this
Agreement in accordance with Section 11.5.

SECTION 3.3       TAXES

All payments by Licensee to Tenaris shall be free of all taxes (including VAT)
which shall be borne by the Licensee. In the event that any withholding or
deduction from any payment to be made by Licensee is required in respect of any
taxes, then Licensee will:

(a)      pay to the relevant authority the full amount required to be so
         withheld or deducted;

(b)      promptly forward to Tenaris an official receipt or other documentation
         satisfactory to Tenaris evidencing such payment to such authority; and

(c)      pay to Tenaris such additional amount or amounts as is or are necessary
         to ensure that the net amount actually received by Tenaris will equal
         to the full amount Tenaris would have received had no such withholding
         or deduction been required.

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SECTION 3.4       RECORDS

Licensee shall keep accounting documents and records reflecting on all of the
Threading, Reconstruction and sales of Products and Accessory Equipment Threaded
with Tenaris Premium Connections. Such documents and records shall include all
information necessary to calculate the amounts owed hereunder. The records shall
be kept at Licensee's facilities for Tenaris' auditor review for a period of 4
(four) years following the Threading or Reconstruction of the licensed Tenaris
Premium Connections.

SECTION 3.5       REPORTS

Licensee shall promptly send Tenaris within 30 (thirty) calendar days of the end
of each calendar quarter, a statement in the format set forth in Schedule "C" of
the number of Tenaris Premium Connections Threaded hereunder in such quarter and
indicating at least the sizes, types, invoices numbers, pricing of Products,
customer name and delivery places for such Tenaris Premium Connections and
calculation of royalties due.

SECTION 3.6       RIGHT TO AUDIT

Tenaris shall be entitled to audit Licensee's accounting records and
documentation related to this Agreement at least twice annually (including, but
not limited to, individual books and those documents mentioned under Section 3.4
above).

Tenaris agrees not to divulge to third parties any information gained on
occasion of such audits.

The cost of the audits shall be borne by Tenaris. However, if such audit should
bring to light any discrepancies between the accounting records or other
documentation and the real quantities of Tenaris Premium Connections Threaded or
Reconstructed and/or sold, or any other negligence in record keeping, Licensee
shall, without prejudice to any other rights or remedies of Tenaris hereunder or
under applicable law (including the termination of this Agreement), pay or
reimburse Tenaris, for the cost of the audit.

                      ARTICLE 4. CONFIDENTIAL INFORMATION

SECTION 4.1       DELIVERY OF PROPRIETARY DOCUMENTATION

Tenaris will, during the term of this Agreement, provide Licensee with access to
Proprietary Documentation relating to Tenaris Premium Connections. Licensee
agrees to refrain from: copying or abridging such Proprietary Documentation;
providing such Proprietary Documentation or copies thereof to any third party;
or using such Proprietary Documentation for any purpose other than performance
under this Agreement. Licensee agrees to promptly return all Proprietary
Documentation, including all copies and abridgments thereof, to Tenaris upon
termination of this Agreement.

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SECTION 4.2       EXCHANGE OF CONFIDENTIAL INFORMATION

During the term of this Agreement, each party to this Agreement may or will
receive, directly or indirectly from the other party, information which the
other party considers confidential ("Confidential Information"). Confidential
Information may be received in tangible form, or may be received visually or
orally. The receiving party agrees to hold in strict confidence, and not to
disclose to third parties, or use for any purpose other than performance under
this Agreement any Confidential Information which the receiving party receives
from the disclosing party either tangible or intangible. Further, the receiving
party agrees to refrain from disclosing the disclosing party's Confidential
Information to any Person or party, except employees of the receiving party who
have a need to know the Confidential Information in order for the receiving
party to perform and receive its full benefit under this Agreement and who have
agreed in writing to maintain the confidentiality of Confidential Information.
The receiving party agree to promptly return all documentation and other
tangible things embodying the disclosing party's Confidential Information which
are in the possession of or under the control of the receiving party, upon
termination of this Agreement for any reason.

The above obligations of confidentiality and non-use of Confidential Information
apply both during the term of this Agreement and thereafter. However, these
obligations of confidentiality and non-use shall not apply to any information
which:

(a)      was known to the receiving party, as shown by suitable evidence, at the
         time the information was received from the disclosing party and who is
         not subject to an obligation of confidentiality to the disclosing
         party; or

(b)      is available, or becomes available to the public through no fault of
         the receiving party, its Affiliates, or agents; or

(c)      is disclosed to the receiving party by a third party who is not subject
         to an obligation of confidentiality to the disclosing party; or

(d)      is required by a final, unappealable order of any court or government
         agency having competent jurisdiction over the information; or

(e)      is independently developed by any of the parties without reference to
         Confidential Information.

                          ARTICLE 5. MARKING PRODUCTS.

SECTION 5.1       OBLIGATION TO MARK

Licensee shall mark each Product or item of Accessory Equipment on which Tenaris
Premium Connection is Threaded or Reconstructed with marks showing:

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(a)      the Tenaris Premium Connections was Threaded or Reconstructed by
         Licensee under license from Tenaris;

(b)      the appropriate logos and Trademark(s) for the Tenaris Premium
         Connection; and

(c)      the appropriate patent number or reference to patent numbers.

SECTION 5.2       USE OF TRADEMARKS

Licensee shall use Trademarks only in conjunction with Tenaris Premium
Connections Threaded or Reconstructed by Licensee at its facilities in the
Territory pursuant to this Agreement and in literature and advertising as
approved in advance by Tenaris. All goodwill relating to the Trademarks shall
belong exclusively to Tenaris and in the event of a termination of this
Agreement and Licensee's rights with respect to the Trademarks, no payment shall
be due or payable to Licensee. Licensee has no license, either by grant or
inference, to use Trademarks, except as specifically allowed under this
Agreement. Use by Licensee of Trademarks shall inure solely to the benefit of
Tenaris. Licensee agrees to refrain from using or seeking registration of any
trademark or trade name the same or confusingly similar to Trademarks, both
during the term of this Agreement and thereafter.

            ARTICLE 6. BUSINESS AND TECHNOLOGY INFORMATION; TOOLING
                AND GAUGES; TRAINING OF PERSONNEL; IMPROVEMENTS

SECTION 6.1       OBLIGATION TO PROVIDE BUSINESS AND TECHNICAL INFORMATION

Tenaris shall make available to Licensee promptly following the execution of
this Agreement business and technical information which, in Tenaris' opinion is
reasonably required to Thread or Reconstruct Tenaris Premium Connections on
Products and Accessory Equipment as contemplated under this Agreement. Technical
information shall include, as required, drawings, inspection manuals, gauging
manuals, standards and specifications of quality and performance of Tenaris
Premium Connections on Products and Accessory Equipment and manufacturing
processes and procedures. Technical information shall be in the English
language. Tenaris shall make available to Licensee all changes or supplements to
the Technology that are incorporated.

SECTION 6.2       TOOLING AND GAUGES

Licensee agrees to purchase or rent solely from Tenaris, a Tenaris Affiliate or
a reputable manufacturer approved by Tenaris, the Tooling and Gauges required
for Threading and/or Reconstruction of Tenaris Premium Connections on Products
and Accessory Equipment by Licensee pursuant to the licenses granted hereunder.

Gauge rental shall be made in the terms and conditions set forth in Schedule "D"
herein. Licensee shall follow the procedural rules and policies issued by
Tenaris from time to

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time relating to the calibration, verification, service or verification of
Gauges against master Gauges held by Tenaris.

SECTION 6.3       RIGHT TO INSPECT GAUGES

Tenaris is entitled, but not obligated, to periodically inspect all Gauges used
by Licensee in connection with the Threading and Reconstruction of Tenaris
Premium Connections, upon giving one (1) day prior written notice to Licensee.
Tenaris will provide Licensee with procedures to determine from inspection of
such Gauges when re-calibration is necessary. Licensee will be responsible for
calibration of the Gauges. Licensee shall bear all costs incurred for the
shipping of Gauges from and to the calibration site, including customs fees,
duties, taxes and deposit expenses.

SECTION 6.4       MAINTENANCE OF GAUGES; LIABILITY FOR DAMAGES.

Licensee shall return to Tenaris the leased Gauges in their entirety and
functionality, and in the event of damages (beyond normal wear and tear),
Licensee shall be responsible for repairing or replacing such Gauges.

SECTION 6.5       TRAINING OF PERSONNEL

Licensee may, from time to time, at its own expense send a reasonable number of
employees to the manufacturing facility of any Affiliate of Tenaris for a
reasonable period of time, for the purpose of receiving technical assistance and
studying methods employed by Tenaris in the Threading and Reconstruction of
Tenaris Premium Connections on Products and Accessory Equipment. The time,
schedule and number of employees will be mutually agreed between Licensee and
Tenaris. Licensee shall indemnify and hold Tenaris harmless from any claim,
award, or damage arising from injury, sickness or death of such employees,
including the injury, sickness or death resulting from the sole or contributory
negligence of Tenaris, its employees, officers or agents. Licensee shall pay all
salaries or wages, and all expenses of Licensee's representatives sent to
Tenaris' facilities and shall pay Tenaris a fee per person for each day of
training, subject to an annual increase (effective for training provided from
January 1, 2003) equal to the annual change in the United States Producers Price
Index occurred during the preceding year.

SECTION 6.6       AVAILABILITY OF SPECIALISTS

At the request of Licensee, Tenaris shall provide technical specialists to
consult with Licensee concerning Threading and Reconstruction of Tenaris Premium
Connections on Products and Accessory Equipment, and assist Licensee with any
problems that may arise in relation thereto. Should Licensee require the
services of technical specialists at any place other than the manufacturing
facility of any Affiliate of Tenaris, Licensee will be required to pay to
Tenaris the amount of all reasonable travel and living expenses for the
technical specialist provided at Tenaris' then current daily rate, (present
daily rate is US$ 500 and shall be increased by no more than 5% in any one
year), for each day a

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technical specialist is away from his home office. Provision of technical
specialists shall depend upon availability. Should Licensee's requirements cause
Tenaris to hire technical specialists that are not part of Tenaris' personnel,
the full cost of such technical specialists shall be borne by Licensee.

SECTION 6.7       FIELD SERVICE

Unless otherwise agreed upon by the Parties, Tenaris shall not provide any
technical assistance for field service for Products or Accessory Equipment
Threaded or Reconstructed by Licensee under this Agreement.

SECTION 6.8       CUSTOMER QUALIFICATION TESTS

Tenaris shall conduct customer qualification tests requested by Licensee subject
to Licensee bearing the costs incurred in such qualification.

SECTION 6.9       MAINTENANCE OF INFORMATION, GAUGES AND TOOLING

Licensee shall be responsible for the maintenance of all Proprietary
Documentation, Confidential Information and Tooling provided to it. This
includes proper storage, inventory, and protection as deemed necessary and as
directed by Tenaris. Further, Licensee agrees to follow all procedures
established by Tenaris. concerning the maintenance and inventory of manuals,
drawings, other Proprietary Documentation, and Gauges. Repair or replacement of
damaged or lost manuals, drawings, and Gauges will be charged to Licensee,
normal wear and tear excepted.

SECTION 6.10      BREACH OF MAINTENANCE AND NON DISCLOSURE OBLIGATION

In the event that if any Proprietary Documentation, Confidential Information,
Technology or Gauges, in whole or in part, or any reproduction of same, is found
outside the receiving party's possession without prior written consent of the
disclosing party in a manner that would reasonably lead one to believe that the
receiving party has materially breached its obligations hereunder, then the
disclosing party has, in addition to its other legal remedies, the right to
terminate this Agreement in accordance with Section 11.5, without any right to a
cure period. Each of the Parties shall also be entitled to seek injunctive
relief for a breach of this Section 6.10 without the necessity of proving
irreparable harm and without posting bond.

SECTION 6.11      SALES LITERATURE

Licensee shall obtain Tenaris' written approval on all sales literature for
Tenaris Premium Connections before such literature is distributed.

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SECTION 6.12      LICENSEE IMPROVEMENTS

Should Licensee develop any modifications or improvements in the design or
manufacture of Tenaris Premium Connections using Patents or Technology, Licensee
shall communicate such modifications or improvements to Tenaris and hereby
grants a royalty-free non-exclusive license to Tenaris to make, use, sub-license
and sell Tenaris Premium Connections on Products and Accessory Equipment
incorporating such technology under terms and conditions similar to those
provided in this Agreement, and only for as long as Licensee is allowed to use
the Patents and Technology, except in the case of termination of this Agreement
under Section 11.5, in which case such license would have the same duration as
that of the patents, if any, disclosed under that license or would be in force
for so long as the know-how disclosed under that license remained confidential
and secret.

                   ARTICLE 7. PRODUCT QUALITY AND PERFORMANCE

SECTION 7.1       COMPLIANCE OBLIGATIONS

Licensee understands that the safety of Tenaris Premium Connections and
protection of Trademarks are primary reasons for maintaining the quality and
performance of the licensed Tenaris Premium Connections. In this regard Licensee
shall at all times provide trained personnel and operate its facilities in the
manner necessary to Thread or Reconstruct Tenaris Premium Connections in
accordance with Technology and Patents and in strict conformance to the
specifications and standards of quality directed by Tenaris from time to time.
Licensee shall comply with all manufacturing procedures, finishing and gauging
practices set forth in the Technology and Patents. Any changes in manufacturing
procedures, such as threading, finishing and gauging shall be made only with
Tenaris' prior written consent. In the event any Tenaris Premium Connections
that are Threaded or Reconstructed by Licensee fail to comply with the above
mentioned standards and specifications of quality, Licensee shall refrain from
marking any non-complying connections with any Trademark. To assure compliance
with this provision, Tenaris shall make available to Licensee on an ongoing
basis its current specifications and standards for finishing.

SECTION 7.2       CERTIFICATION TO THREAD.

As a condition precedent to the validity of the licenses granted herein,
Licensee shall obtain a certification by Tenaris of its ability to thread
Tenaris Premium Connections in accordance with Technology. In order to obtain
such certification Licensee shall provide Tenaris with samples of Tenaris
Premium Connections machined and/or processed in the facility which meet
Tenaris' standards and specifications of quality and performance. Final
certification, following the sample review, shall be within the sole discretion
of Tenaris. Thereafter, Tenaris may require at any time the performance of tests
at any time. Failure to meet Tenaris' standards at any time may result,
notwithstanding any other remedy available, in termination under Section 11.5

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SECTION 7.3       LICENSEE EVALUATION QUESTIONNAIRE.

Licensee shall be required to complete and respond evaluation questionnaires in
order to allow Tenaris to review technical and quality performance by Licensee.
Tenaris shall be entitled to make site evaluations on licensee's facilities to.
review such technical and quality performance. Tenaris shall be entitled to
terminate this Agreement if Licensee does not meet Tenaris' standards of
technical or quality performance,

SECTION 7.4       OBLIGATION TO PROVIDE ACCESS TO LICENSEE'S FACILITIES.

Licensee shall provide free access to its facilities to Tenaris officials
assigned to perform inspections under Sections 6.3. and Section 7.3.

SECTION 7.5       QUALITY PROBLEMS

Tenaris shall cooperate to resolve problems Licensee may have in complying with
Tenaris Premium Connection standards and specifications of quality. In the event
Tenaris Premium Connections that are Threaded or Reconstructed by Licensee fail
to comply with the Tenaris Premium Connections standards and specifications of
quality, then Licensee shall refrain from marketing or selling such
non-conforming Tenaris Premium Connections until such time as the problems
causing such non conformance are solved. In the event that Licensee fails to
resolve such problems within a reasonable time after discovery of the defect, or
after the time it should have discovered the defect, Tenaris may terminate this
Agreement by means of a written notice to Licensee.

                              ARTICLE 8. WARRANTY

SECTION 8.1       WARRANTY

Tenaris warrants that the Technology supplied to Licensee pursuant to this
Agreement shall, if properly applied under circumstances equivalent at Tenaris's
manufacturing operations, permit Licensee to Thread Tenaris Premium Connections
of the same kind and nature Threaded by Tenaris's Affiliates, provided, however,
that no representations or warranty is made or given as to the suitability of
the Technology if used in any manner different than that conducted by Tenaris.
Except as expressly provided herein, the Technology, Patents and Trademarks to
be licensed under this Agreement are being licensed without presentation or
warranty of any kind or nature, including title, design, performance, fitness
for a particular purposes, absence of defects, latent or otherwise,
non-infringement of patents or intellectual property or merchantability. It
being understood that the licenses granted hereunder are being provided strictly
on an "as is" "where is" basis.

SECTION 8.2       EXCLUSION OF TOOLING

Tooling, including thread form inserts, groove tools, Teflon seal rings, and
thread protectors supplied by Tenaris for each Tenaris Premium Connection may
not be

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manufactured by Tenaris. Accordingly, Licensee agrees that Tenaris shall not be
warrantor with respect to any threadform inserts, groove tools, Teflon seal
rings, thread protectors or other tooling which licensee may purchase directly
(subject to Section 6.2) from any vendor. Licensee shall be responsible for the
inspection of such Tooling from any vendors.

SECTION 8.3       WARRANTY TO CUSTOMERS

Whenever market practice may allow it, Licensee shall use reasonable efforts to
limit its warranty to customers for all Tenaris Premium Connections on Products
and Accessory Equipment Threaded or Reconstructed by the terms stated in
Schedule "E".

                              ARTICLE 9. INDEMNITY

(a)      Licensee and Tenaris, shall indemnify and hold harmless the respective
         other party, its directors, officers and employees from any loss,
         damage or destruction of the property and equipment of the other, its
         directors, officers, employees and invitees (whether owned by such one
         party or by a third party); and from all liability and expenses
         (including attorney's fees), arising from all claims, demands and
         causes of action for the injury or death of any director, officer,
         employee or invitee of such one party; arising from an incident or
         performance under this Agreement without regard to the cause or causes
         thereof or the negligence or fault (active or passive) of any party or
         parties or whether based upon any theory of strict liability. In the
         event this indemnity is limited by any law, then the indemnity herein
         shall apply to the maximum extent allowed in the jurisdiction where the
         loss, damage, destruction, injury or death occurs.

(b)      Licensee hereby agrees to indemnify, defend and hold Tenaris and
         Tenaris' Affiliates and their respective officers, directors,
         employees, agent, stockholders and controlling persons and their
         respective successors and assigns harmless from and against in respect
         of any and all liabilities, losses, damages, demands, assessments,
         claims, costs and expenses (including interest, awards, judgments,
         penalties, settlements, fines, diminution in value, cost and expenses
         incurred in connection with investigating and defending any claims or
         causes of action (including, without limitation, attorneys' fees and
         expenses, and all fees and expenses of consultants and other
         professionals) actually suffered, incurred or realized by such party
         arising out of or resulting from or relating to the use of the
         Technology, Patents or Trademarks by Licensee, the Threading, the
         Reconstruction, sale or use of any Tenaris Premium Connections on
         Products by Licensee or for any breach of any covenant or agreement by
         Licensee hereunder except:

         (i)      for the portion of any claim, demand, cause of action, loss or
                  cost directly attributable to the willful misconduct of
                  Tenaris; and

         (ii)     for the conditions of mutual indemnity of ARTICLE 9(a) above.

                                       11

<PAGE>

           ARTICLE 10. EXCLUSION OF CONSEQUENTIAL AND OTHER INDIRECT
                                    DAMAGES.

Neither Party shall be liable to the other for any special, consequential,
incidental, exemplary or punitive damages arising from or incidental to
performance under this Agreement, including without limitation, loss of profits,
revenue or business.

                        ARTICLE 11. TERM AND TERMINATION

SECTION 11.1      DURATION

This Agreement shall become effective and the rights herein granted shall
commence retroactively as of May 1st 2002, and shall continue in effect for one
year therefrom, and will be automatically renewed every one (1) year thereafter
unless Tenaris otherwise notifies Licensee with sixty (60) days prior written
notice, or unless otherwise terminated in accordance with the terms of this
ARTICLE 11.

SECTION 11.2      EARLY TERMINATION BY TENARIS

Tenaris will be entitled to unilaterally terminate this Agreement at any time by
giving Licensee sixty (60) days advanced written notice of its intention to
terminate this Agreement. In such case, Section 11.3 shall apply and Tenaris
shall not be required to pay any compensation to Licensee as a result of any
losses suffered by Licensee due to such unilateral termination by Tenaris.

SECTION 11.3      COMPLETION OF PENDING WORKS BY LICENSEE

Whenever notice of termination is given, during the remaining life of this
Agreement, Licensee shall be entitled to complete the work as scheduled with
their customers on any orders requiring Products or Accessory Equipment placed
prior to the termination notice, irrespective of the agreed time for
performance. Notwithstanding the foregoing, nothing in this Agreement shall be
construed to provide for a license or other rights to use or employ Technology
and the term of any license granted hereunder with respect to any patent in any
jurisdiction shall not extend beyond the expiration date of such patent in such
jurisdiction.

SECTION 11.4      INSOLVENCY

In the event Licensee, its successors or assigns shall become bankrupt or
insolvent, or enter into a composition with creditors, or if a receiver shall be
appointed, or if any petition or application for reorganization be filed by or
against it, then this Agreement may be terminated by Tenaris. However, Licensee
shall not be thereby discharged from any liability to Tenaris for any amounts
due at the time of termination or from antecedent liability and the licenses to
Tenaris shall continue in effect without impairment.

                                       12

<PAGE>

SECTION 11.5      TERMINATION FOR DEFAULT

If either Party shall fail to observe or perform any of its material promises,
agreements, or undertakings under this Agreement, and fails to remedy any such
breach within thirty (30) days of notice to do so from the other party, then the
aggrieved party may, upon expiration of the thirty (30) days notice period, give
written notice of termination of this Agreement either forthwith or at a future
date designated by the aggrieved party. The Parties agree that, without
prejudice to any indemnification rights they may be entitled to, the party in
breach of its obligations shall be subject to an injunction of the appropriate
court against any further such violations without the requirement to prove an
inadequate remedy at law or obligation to post bond or similar security.

SECTION 11.6      EFFECT OF TERMINATION

Termination shall cause the end of the Parties' rights and obligations under the
Agreement in relation to the license, with the exception of

                  (a)      the obligations for which compliance is pending at
                           the time of the termination;

                  (b)      the obligations of confidentiality and non-use of
                           Confidential Information,

                  (c)      obligations of warranty and indemnity under this
                           Agreement.

                  (d)      the agreement of the Parties regarding Notices,
                           Governing Law, Resolution of Disputes and
                           miscellaneous.

In addition the Parties shall promptly return to Tenaris all Gauges, Tooling,
Proprietary Documentation, Technology and Confidential Information, including
all copies thereof which are in the possession or under control of Licensee.

                              ARTICLE 12. NOTICES

All notices, consents, waivers, and other communications under this Agreement
must be in writing and will be deemed to have been duly given when (a) delivered
by hand (with written confirmation of receipt), (b) sent by telecopier (with
written confirmation of receipt), provided that a copy is mailed by certified
mail, return receipt requested, (c) sent by electronic mail or (d) when received
by the addressee, if sent by a recognized overnight delivery service (receipt
requested), in each case to the appropriate addresses and telecopier numbers set
forth below (or to such other addresses and telecopier numbers as a party may
designate by notice to the other party):

                                       13

<PAGE>

<TABLE>
<CAPTION>
 TUBOS DE ACERO DE MEXICO                               TENARIS CONNECTIONS B.V.
          S.A.
<S>                                                     <C>
Edificio Parque Reforma                                 Dr Simini 250
Campos Eliseos 400-17 Piso                              (2804) Campana
Col. Chapultepec Polanco                                Provincia de Buenos Aires
11560 Mexico, D.F., Mexico
                                                        Argentina

Attention: Felix Todd                                   Attention: Julio Pacienza

Facsimile No. 52-5552-829962                            Facsimile No.: 54-3489-433090

Telephone No.: 52-5552-829912                           Telephone No.: 54-3489-433505

e-mail: ftp@tamsa.com.mx                                e-mail: jpa@siderca.com
</TABLE>

                             ARTICLE 13. APPROVALS

SECTION 13.1      REGISTRATION OF THE AGREEMENT

Promptly upon execution and delivery of this Agreement, Licensee shall register,
if required, this Agreement in the appropriate departments, agencies and/or
offices of government within the Territory, and shall obtain all necessary
approvals as may be required by law in the Territory.

SECTION 13.2      COOPERATION TO OBTAIN APPROVALS AND LICENSES

Tenaris and Licensee shall cooperate in obtaining any approvals or licenses
which may be required in connection with the implementation of any portion of
this Agreement

                           ARTICLE 14. FORCE MAJEURE

If the performance of this Agreement or of any obligation under this Agreement,
except payment of moneys due and maintaining information and documents in
confidence, is prevented, restricted or interfered with by acts of government,
war, rebellion, riot, labor unrest, unavailability of materials, acts of God, or
any other force, act or condition beyond the reasonable control of the parties
("Force Majeure"), the party affected by Force Majeure shall be excused from
such performance to the extent of such prevention, restriction or interference,
provided that the party so affected promptly notifies the other party of the
Force Majeure condition, uses its best efforts to avoid or remove the Force
Majeure condition, and continues performance under this Agreement with utmost
dispatch when such Force Majeure condition is removed. In the event a Force
Majeure condition results in suspension of performance under this Agreement for
a continuous

                                       14

<PAGE>

period of 90 days or more, the party not affected by the Force Majeure condition
may terminate this Agreement by giving the affected party written notice of
termination.

                 ARTICLE 15. GOVERNING LAW; DISPUTE RESOLUTION

SECTION 15.1      GOVERNING LAW

This Agreement shall be deemed made pursuant to, and shall be governed by the
laws of Italy, except the conflict of laws provisions thereof.

SECTION 15.2      DISPUTE RESOLUTION

If, during the term of this Agreement or after its termination, disputes,
controversies, claims or differences arising out or relating to this Agreement
(including any questions as to the existence, validity, termination, discharge,
breach or enforceability of this Agreement and of this arbitration clause),
arise between Tenaris and Licensee, the Parties shall take every reasonable
effort to negotiate an amicable settlement. In the event the Parties are unable
to reach a settlement within thirty (30) days after notice by any of the Parties
is given to the other party acknowledging the existence of a dispute to be
solved in accordance with the provisions of this Section 15.2, then either party
may request arbitration pursuant to the then current rules of the International
Chamber of Commerce domiciled in Paris for arbitration in accordance with the
rules of such organization. Each Party shall appoint one arbitrator of its
choice, and the two appointed arbitrators shall appoint a third arbitrator. A
decision agreed to by at least two of the arbitrators shall be the decision of
the arbitration proceeding. In the event either party fails to appoint an
arbitrator or in the event no agreement is reached between the two arbitrators
as to the appointment of the third arbitrator in accordance with the foregoing
provisions, such arbitrator or arbitrators shall be appointed, upon application
of the interested party, by the Court of Arbitration of the International
Chamber of Commerce. Unless the Parties agree otherwise, the site of the
arbitration shall be Bergamo, Italy. Arbitration proceedings shall be conducted
in the English language. Any decision or award of the arbitrators shall be based
solely on the provisions of this Agreement, provided, however, that to the
extent that the subject matter for the decision or award is not provided for in
such provisions, the decision or award shall be based upon the controlling law
of this Agreement, excluding the conflicts of laws provisions thereof. The
arbitrators shall not be requested nor shall they have the power to render any
decision or award except in accordance with the preceding sentence. The award
rendered in any arbitration commenced hereunder shall be final and conclusive
and judgment thereon may be entered in any court having jurisdiction for its
enforcement. Neither party shall appeal to any court from the decision of the
arbitration panel. In addition, except for injunctive relief in aid of
arbitration, neither party shall have any right to commence or maintain any suit
or legal proceeding concerning a dispute hereunder until the dispute has been
determined in accordance with the arbitration procedure provided for herein and
then only for enforcement of the award rendered in such arbitration. Pending
settlement of any dispute, the parties shall abide by their obligations under
this Agreement without prejudice to a final adjustment in

                                       15

<PAGE>

accordance with an award rendered in an arbitration settling such dispute. A
party may be entitled to receive injunctive relief from a court of competent
jurisdiction in aid of arbitration.

                 ARTICLE 16. ASSIGNMENT, SUBLICENSING AND SUB-
                                   CONTRACTING

SECTION 16.1      ASSIGNMENT

The licenses granted in this Agreement are personal to the Licensee and the
Licensee shell not assign the same or grant any sub-license thereunder without
the prior written consent of Tenaris. Tenaris shall be entitled to assign this
Agreement to an Affiliate at any time during the life of the Agreement.

SECTION 16.2      NO SUB-LICENSING OR SUB-CONTRACTING BY LICENSEE

Licensee may not grant any sublicenses in connection with the licenses herein
granted to Licensee nor subcontract any of the works that licensee is entitled
to perform under the licenses.

                           ARTICLE 17. MISCELLANEOUS

SECTION 17.1      SEVERABILITY

The Parties expressly agree that it is not the intention of either party to
violate any public policy, statute or common law rule; and if any provision(s)
of this Agreement shall be held to be invalid, illegal or unenforceable, in
whole or in part, in any jurisdiction within which the Agreement is to be
performed, or if any appropriate government agency or authority shall require
the Parties to delete any provision of this Agreement, such invalidity,
illegality, enforceability or deletion shall not impair or affect the remaining
provisions of this Agreement, so long as the material purposes of this Agreement
can be determined and effectuated. The Parties shall endeavor in good faith
negotiations to replace the invalid, illegal, unenforceable or deleted
provisions by valid provisions, the effect of which comes as close as legally
possible to the intention of the parties upon entering into this Agreement,
provided, however that any of the Parties shall be entitled to terminate the
Agreement should any provision of the Agreement is held to be invalid, illegal
or unenforceable in whole or in part.

SECTION 17.2      NON WAIVER

The failure of one party hereto to enforce at any time any of the provisions of
this Agreement, or exercise any rights or any elections herein provided, shall
in no way be considered to be a waiver of such provisions, rights or elections
or in any way to affect the validity of this Agreement. The exercise by such
party of any rights or any elections under the terms of this Agreement shall not
preclude or prejudice such party from exercising the same or any other rights or
elections it may have under this Agreement

                                       16

<PAGE>

SECTION 17.3      ENTIRE AGREEMENT

This Agreement contains the entire Agreement between the parties applying to the
matters herein contained and has been entered into relying only upon the
provisions contained herein and not upon any other representation by either of
the Parties. This Agreement supersedes all representations, agreement,
statements and understandings whether written or oral, relating to such matters
made prior to execution of this Agreement. This Agreement can only be amended by
an agreement in writing executed by the Parties hereto. This Agreement may not
be modified, supplemented, explained or waived except as agreed to in a writing
executed by both parties.

SECTION 17.4      HEADINGS

The headings used in this Agreement are inserted for convenience and
identification only, and are not intended to describe, interpret, define, or
limit the scope, extent or intention of this Agreement or any provision hereof.

SECTION 17.5      CHOICE OF LANGUAGE

This Agreement has been prepared in English and, notwithstanding any translation
of this Agreement into any other language, the English version of this Agreement
shall control in all respects.

IN WITNESS WHEREOF, each party has caused this Agreement in multiple original to
be subscribed by duly authorized representative on the Effective Date.

TENARIS CONNECTIONS B.V.              TUBOS DE ACERO DE MEXICO S.A.

By: /s/ Dennis Day                    By: /s/ Felix Todd  /s/ Clauidio Gugliuzza
    -------------------                   --------------------------------------
Name: HBM Europe B.V.                 Name:   Felix Todd      Claudio Guliuzza

Title: Managing Director              Title:

                                       17

<PAGE>

                                LIST OF SCHEDULES

         SCHEDULE          -DEFINITIONS

         SCHEDULE          -ROYALTIES

         SCHEDULE          -FORM OF STATEMENT OF SECTION 3.5

         SCHEDULE          -GAUGE RENTAL FEES

         SCHEDULE          -WARRANTY TO CUSTOMERS

         SCHEDULE          -LIST OF LICENSED CONNECTIONS

         SCHEDULE          -PATENTS

         SCHEDULE          -TRADEMARKS

                                       18

<PAGE>

             TENARIS CONNECTIONS B.V./TUBOS DE ACERO DE MEXICO S.A.

                     TENARIS PREMIUM CONNECTIONS TECHNOLOGY
                                LICENSE AGREEMENT

                                  SCHEDULE "A"

                                   DEFINITIONS

1.       "ACCESSORY EQUIPMENT" shall mean the threaded items necessary to
         complete a well to produce oil and gas, such as crossovers, connectors,
         pup joints, liner hangers, landing nipples, packers, packer stringers,
         end line pressure control equipment, safety valves, gas lift valve
         mandrels, lift plugs, lift caps, hydrostatic test plugs, hydrostatic
         test caps, handling plugs, handling caps, discharge head hangers, float
         shoes, float guides, float collars, flow couplings, collars, blast
         joints, tubing anchors, side pocket mandrels, couplings and similar
         equipment as defined in API Standards series 5, latest edition, but
         excluding the items, Threaded Couplings, casing, and tubing.

2.       "AFFILIATE" of any specified Person means any other Person directly or
         indirectly controlling or controlled by or under direct or indirect
         common control with such specified Person. For the purposes of this
         definition, "control" when used with respect to any specified Person
         means the power to direct the management and policies of such Person
         directly or indirectly, whether through the ownership of voting
         securities, by contract or otherwise; and the terms "controlling" and
         "controlled" have meanings correlative to the foregoing.

3.       "TENARIS PREMIUM CONNECTIONS " means the current line of Tenaris
         Premium Connections described in Schedule "F" and any improvements made
         in the future.

4.       "GAUGES", means such Tenaris' proprietary gauges and gauge tools
         necessary for Licensee to Thread or Reconstruct Tenaris Premium
         Connections on Products and Accessory Equipment pursuant to the
         licenses granted hereunder to it.

5.       "PATENTS" means all patents and patent applications relating to the
         Threading or Reconstruction of Tenaris Premium Connections on Products
         and Accessory Equipment described in Schedule "G" and future patents
         and patent applications to the extent added as provided in this
         Agreement.

6.       "PERSON" means any individual, corporation, partnership, joint venture,
         association, joint-stock company, trust, unincorporated organization or
         government or any agency or political subdivision thereof.

7.       "PRODUCTS" means tubular products excluding drill pipe, manufactured
         under API 5CT specifications by either Siderca S.A.I.C., Tubos de Acero
         de Mexico S.A.,

                                       1

<PAGE>

         Dalmine S.p.A., NKKTubes, Tubos de Acero de Venezuela S.A. or Algoma
         Seamless Tubulars or their respective affiliates.

8.       "PROPRIETARY DOCUMENTATION" means any drawing or document, in either
         man-readable or machine-readable form, or any tangible thing which is
         the property of the Parties, including without limitation all price
         lists, discount sheets, customer lists, supplier lists, quotations,
         analytical data, market data, engineering data, drawings, computer
         software, manuals, specifications, standards, designs, methods,
         procedures, techniques, formulations, instruments, and other business
         and technical information in tangible form which are the property of
         either of the Parties.

9.       "RECONSTRUCT" means re-cutting a worn or damaged thread for Tenaris
         Premium Connections on Products and Accessory Equipment.

10.      "TECHNOLOGY" means all current (and future to the extent provided in
         this Agreement) technical information owned which Tenaris has the right
         to license in the Territory and which is reasonably necessary for
         Licensee to Thread or Reconstruct Tenaris Premium Connections on
         Products and Accessory Equipment, including Tenaris data, methods,
         procedures, specifications, standards, drawings, know-how, manuals,
         Proprietary Documentation and Confidential Information.

11.      "TENARIS" means Tenaris-Connections BV.

12.      "TERRITORY" means Mexico and its offshore waters.

13.      "THREAD" and "THREADING" means the processes of cutting threads
         embodying the Technology and Patents licensed hereunder.

14.      "TOOLING" means tooling and accessories made to a party's specification
         (either by a party hereto or any other Person) for use in Threading or
         Reconstruction of Tenaris Premium Connections on Products or Accessory
         Equipment in accordance with a party's Technology or Patents, including
         without limitation thread form inserts, groove tools, Teflon seal
         rings, thread protectors.

15.      "TRADEMARKS" means those current trademarks and trade names listed in
         Schedule "H" and any future trademarks and trade names that may
         identify Tenaris Premium Connections which are or may be the subject of
         a license under this Agreement, both registered and unregistered.

                                       2

<PAGE>

             TENARIS CONNECTIONS B.V./TUBOS DE ACERO DE MEXICO S.A.

                 TENARIS PREMIUM CONNECTIONS TECHNOLOGY LICENSE
                                   AGREEMENT

                                  SCHEDULE "B"

                                    ROYALTIES

                           TENARIS PREMIUM CONNECTIONS

In consideration of the sublicenses granted herein by TENARIS to Licensee,
Licensee shall pay TENARIS royalties, as follows:

a)       for Threading:

(1)      for full length Products of 9% or less Cr threaded with Tenaris Premium
         Connections, the royalty shall be six per cent (6%) of the Net Selling
         Price of the tubular product;

(2)      for full length Products of more than 9% Cr threaded with Tenaris
         Premium Connections, the royalty shall be three per cent (3%) of the
         Net Selling Price of the tubular product;

Net Selling Price: means the gross amounts actually invoiced by Licensee for
said product, including packaging, marking, documentation and any other charges
but not including (a) excise taxes on sales of consumption; (b) any charges
incurred for transportation of the product; (c) insurance; (d) custom fees,
consular fees, tally and dispatch costs; (e) any discounts or rebates normally
licensed to the buyer of such product and (f) any amounts reimbursed by Licenses
to its customers.

b)       for Reconstruction of Products and Threading and Reconstraction of
         Accessory Equipment

<TABLE>
<CAPTION>
SIZES (INCHES)                                          USD/END
<S>                                                     <C>
2 3/8" through 3 1/2"                                   10
4" through 5 1/2"                                       15
6 5/8" through 7 5/8"                                   20
8" through 9 5/8"                                       25
10 3/4" through 14"                                     34
Longer than 14"                                         45
</TABLE>

                                       1

<PAGE>

NOTE: If accessory or joint of pipe (pin or box) is machined on both ends, the
royalty will be twice the amount shown above.

                                       2

<PAGE>

             TENARIS CONNECTIONS B.V./TUBOS DE ACERO DE MEXICO S.A.

                 TENARIS PREMIUM CONNECTIONS TECHNOLOGY LICENSE
                                    AGREEMENT

                                  SCHEDULE "C"
                        FORM OF STATEMENT OF SECTION 3.5.

                                       1

<PAGE>

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
                                 ROYALTY AND GAUGES RENT REPORT REGARDING CUT OF TENARIS CONNECTIONS
------------------------------------------------------------------------------------------------------------------------------------
<S>                      <C>                                 <C>                   <C>                    <C>     <C>
LICENCEE FIRM                                                LOCATION                                             LICENCE AGREEM. NO
------------------------------------------------------------------------------------------------------------------------------------
YEAR                     QUARTERS - FROM MONTH:              TO MONTH:             DOC. PAGE:             OF:     DOC. ISSUE DATE:
------------------------------------------------------------------------------------------------------------------------------------
LICENCEE'S CONTACT NAME                                      FAX NO                PHONE NO                       E MAIL:
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------------------
                                                                                   THD. QUANTITY      ROYALTY AMOUNT
   PURCHASE              INVOICE  INVOICE  CONNECTION              STEEL  THREAD   ----------------------------------------
 ORDER NUMBER  CUSTOMER  NUMBER    DATE     THREADED   O.D.  W.T.  GRADE   TYPE    PIN      BOX   EACH ONE          TOTAL
---------------------------------------------------------------------------------------------------------------------------
<S>            <C>       <C>      <C>      <C>         <C>   <C>   <C>    <C>      <C>      <C>   <C>               <C>
---------------------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------------------
                                                                   GRAND TOTAL                    GR. TOTAL
---------------------------------------------------------------------------------------------------------------------------

<CAPTION>
--------------------------------------------
                 GAUGE RENT AMOUNT
   PURCHASE    -----------------------------
 ORDER NUMBER  PER DAY   NO. OF DAY    TOTAL
--------------------------------------------
<S>            <C>       <C>           <C>
--------------------------------------------
--------------------------------------------
--------------------------------------------
--------------------------------------------
--------------------------------------------
--------------------------------------------
--------------------------------------------
--------------------------------------------
--------------------------------------------
--------------------------------------------
--------------------------------------------
--------------------------------------------
--------------------------------------------
--------------------------------------------
--------------------------------------------
--------------------------------------------
--------------------------------------------
--------------------------------------------
--------------------------------------------
--------------------------------------------
--------------------------------------------
--------------------------------------------
--------------------------------------------
--------------------------------------------
               GRAND TOTAL
--------------------------------------------
</TABLE>

NOTES

<TABLE>
<S>                                                                             <C>
------------------------------------------------------------------------------------------------------------
CONTACT NAME - Perazo Lorena                                                    FAX    #    0054 3489 433090
ADDRESS: DR SIMINI 250 - CAMPANA (2804) BUENOS AIRES - ARGENTINA                PHONE  #    0054 3489 435144
                                                                                E MAIL Iperazo@tenaris.com
</TABLE>

-        ROYALTY AND GAUGE RENT REPORT, MUST BE SENT TO TENARIS WITHIN 30 DAYS
         AFTER END OF EACH QUARTER OF CALENDAR YEAR.

-        ALSO IN CASE THAT NO ONE CONNECTION HAS BEEN CUT DURING A QUARTER OF
         CALENDAR YEAR, FILL IN TOP PART OF REPORT, WRITE ON NOTE SPACE "NO
         ACTIVITY DURING ABOVE MENTIONED QUARTER OF CALENDAR YEAR," AND SEND IT
         TO THE CONTACT ADDRESS.

<PAGE>

             TENARIS CONNECTIONS B.V./TUBOS DE ACERO DE MEXICO S.A.

                 TENARIS PREMIUM CONNECTIONS TECHNOLOGY LICENSE
                                    AGREEMENT

                                  SCHEDULE "D"

                                GAUGE RENTAL FEES

LICENSEE shall pay Tenaris the following daily lease rates for any set of gauges
(pin or box), for any single threaded end and size (in US$/day):.

<TABLE>
<CAPTION>
Sizes                                                     USD/Day
---------------------------------------------------------------
<S>                                                       <C>
2 3/8" through 3 1/2"                                        31
---------------------------------------------------------------
4" through 5 1/2"                                            33
---------------------------------------------------------------
6 5/8" through 7 5/8"                                        35
---------------------------------------------------------------
8" through 9 5/8"                                            42
---------------------------------------------------------------
Longer than 10 3/4"                                          47
---------------------------------------------------------------
</TABLE>

DAYS are defined as days from date of departure to date of arrival to Gauges
Hub. For overseas delivery, transit time up to a maximum of eight (8) days will
not be charged.

LICENSEE shall arrange at its expense the shipments to and from Tenaris's Plants
or Tenaris's designated depot.

LICENSEE shall be liable only for the Gauges shipped from LICENSEE's plant to
and from Tenaris's Plants or Tenaris's designated depot.

LICENSEE will pay within 30 (thirty) calendar days from receipt of invoice.

QUARTERLY LEASE

LICENSEE may lease Gauges, at its own discretion, for a period of 3 (three)
monthsIn this case, the Quarterly lease, will be invoiced to LICENSEE at the
beginning of each quarter period and it will be paid within 30 (thirty) calendar
days from invoice receipt. Amounts are the following (in US$):

<TABLE>
<CAPTION>
Sizes                                               USD/Quarter
---------------------------------------------------------------
<S>                                                 <C>
2 3/8" through 3 1/2"                                  1.395
---------------------------------------------------------------
4" through 5 1/2"                                      1.485
---------------------------------------------------------------
6 5/8" through 7 5/8"                                  1.575
---------------------------------------------------------------
8" through 9 5/8"                                      1.890
---------------------------------------------------------------
Longer than 10 3/4"                                    2.115
---------------------------------------------------------------
</TABLE>

Note: the Tenaris technical drawings shall indicate every combination diameter,
wall thickness, connection.

                                       1

<PAGE>

             TENARIS CONNECTIONS B.V./TUBOS DE ACERO DE MEXICO S.A.

                 TENARIS PREMIUM CONNECTIONS TECHNOLOGY LICENSE
                                    AGREEMENT

                                  SCHEDULE "E"

                              WARRENTY TO CUSTOMERS

Licensee warrants that all Materials delivered under this Order shall conform to
the specifications and descriptions listed on the face side hereof or if none
are listed, then to Licensee standard specifications for such Materials. The
foregoing warranty shall continue in effect until such Materials are accepted or
the time period to inspect the same expires, whichever shall first occur, except
for the warranty just given. Licensee HEREBY DISCLAIMS ALL OTHER WARRANTIES OF
EVERY KIND AND CHARACTER WHETHER EXPRESS OR IMPLIED, INCLUDING THOSE RELATING TO
MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR INTENDED USE. Any misuse
of Materials or the improper application or alteration thereof after delivery by
Licensee shall be at the Buyer's risk and expense. Provided, however, in the
event the Buyer timely rejects any Materials which fail to conform to the
specifications and descriptions of this Order, then Licensee shall have the
option either to replace such Materials at its sole cost and expense or to give
the Buyer credit as to the price therefore. Unless specifically stated in this
Order to the contrary, Licensee shall not be liable for any transportation,
installation, fabrication, inspection, testing or other expenses incurred by the
Buyer or its customers as a result of any breach of warranty herein. In
addition, any claim made by the Buyer against Licensee shall in no event exceed
the invoice price for the specific Materials in question, nor Licensee be liable
for any consequential or incidental damages which may be suffered or incurred on
account of any nonconforming Materials shipped to the Buyer or its customer, it
being agreed that in all cases. Licensee shall have the opportunity to remedy
and correct any breach of warranty in the manner provided above and that the
existence of any nonconforming shipment shall not constitute a default unless
the same reoccurs in more than one instance, and provided Licensee fails to give
adequate written assurances to the Buyer after a demand is made therefore.

                                       1

<PAGE>

             TENARIS CONNECTIONS B.V./TUBOS DE ACERO DE MEXICO S.A.

                 TENARIS PREMIUM CONNECTIONS TECHNOLOGY LICENSE
                                    AGREEMENT

                                  SCHEDULE "F"

                          LIST OF LICENSED CONNECTIONS

NK 3SB

NEW NK 3SB

NK 3SB-ST

NK 3SB-SL

NK HW

NK HWSL

NK EL

                                       1

<PAGE>

             TENARIS CONNECTIONS B.V./TUBOS DE ACERO DE MEXICO S.A.

                 TENARIS PREMIUM CONNECTIONS TECHNOLOGY LICENSE
                                    AGREEMENT

                                  SCHEDULE "G"

                                     PATENTS

Tenaris Patents under which Licensee is licensed by Tenaris for Threading and
Reconstruction, use or sale of Products and Accessory Equipment pursuant to this
Agreement:

                                       1

<PAGE>

             TENARIS CONNECTIONS B.V./TUBOS DE ACERO DE MEXICOS S.A.

                 TENARIS PREMIUM CONNECTIONS TECHNOLOGY LICENSE
                                    AGREEMENT

                                  SCHEDULE "H"

                                   TRADEMARKS

Trademarks under which Licensee is licensed by TENARIS for Threading,
Reconstruction, use or sale of Products and Accessory Equipment pursuant to this
Agreement:

Tenaris

NK 3SB

NEW NK 3SB

NK 3SB-ST

NK-3SB-SL

NK HW

NK HWSL

NK EL

                                       1

<PAGE>

               ADDENDUM TO TENARIS PREMIUM CONNECTIONS TECHNOLOGY
                                LICENSE AGREEMENT

This Addendum (the "Addendum") is entered into by and between Tenaris
Connections BV, a corporation organised and existing under the laws of The
Netherlands, having its offices at Schiphol Boulevard 271, 1118 BH, Luchthaven
Schiphol, Amsterdam (hereinafter referred to as "Tenaris") and Tubos de Acerro
de Mexico S.A., a corporation incorporated under the laws of Mexico, having its
offices at Km 433.5 Carretera Mexico-Xalapa, Veracruz, Mexico (hereinafter
referred to as "Licensee", and collectively, the "Parties").

RECITALS

A.       On July 10th 2002, Tenaris and Licensee executed a Tenaris Premium
Connections Technology License Agreement for the use of technology and know-how,
by means of which Tenaris granted to Licensee a non-exclusive license to use,
cut, manufacture and sell Tenaris Premium Connections (the "Agreement").
Capitalised terms used herein without definition shall have the meanings
assigned to them in the Agreement; and

B.       The Parties wish to amend certain schedules to the Agreement to
incorporate certain newly developed connections of Tenaris to the scope of the
licenses granted under the Agreement;

C.       All information to be delivered by Tenaris in connection with such new
connections include information, know-how and technology developed by Tenaris
and its affiliates, including but not limited to the technology of the
TenarisBlue connection, that is being patented by Tenaris and its affiliates and
still secret; and

D.       Licensee understands that the Technology and all the information and
documentation related to it is an industrial secret, technology with a
corresponding patent application and proprietary information of Tenaris and its
Affiliates, and agrees to retain in confidence such information and
documentation and treat it in accordance with the provisions of the Agreement.

Now, therefore, both Parties agree as follows:

1.       AMENDMENT TO SCHEDULE F, LIST OF LICENSED CONNECTIONS

Schedule F to the Agreement shall be deemed amended as follows:

             "TENARIS CONNECTIONS B.V./TUBOS DE ACERO DE MEXICO S.A.
                 TENARIS PREMIUM CONNECTIONS TECHNOLOGY LICENSE
                                    AGREEMENT

                                       1

<PAGE>

                                 SCHEDULE "F"
                          LIST OF LICENSED CONNECTIONS

Tenaris NK3SB(C) Family
NK 3SB
NEW NK 3SB
NK 3SB-ST
NK 3SB-SL
NK HW
NK HWSL
NK HL

TenarisBlue (tm) Family
TenarisBlue
TenarisBlue dopeless

2.       AMENDMENT TO SCHEDULE G. PATENTS

Schedule G to the Agreement shall be deemed amended as follows:

             "TENARIS CONNECTIONS B.V./TUBOS DE ACERO DE MEXICO S.A.
                 TENARIS PREMIUM CONNECTIONS TECHNOLOGY LICENSE
                                    AGREEMENT
                                  SCHEDULE "G"
                                     PATENTS

Tenaris Patents under which Licensee is licensed by Tenaris for Threading and
Reconstruction, use or sale of Products and Accessory Equipment pursuant to this
Agreement:

<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------------
(In Japan)
----------------------------------------------------------------------------------------------------------------------
No      Title of Invention                      Co-Patentee    Application   Application   Registration   Registration
                                               (Co-Applicant)      Date        Number          Date          Number
----------------------------------------------------------------------------------------------------------------------
<S>     <C>                                    <C>             <C>           <C>           <C>            <C>
1       WORKING FOR TAPERED SCREW                                1983.4/27      58073060     1989.10/12        1524370

----------------------------------------------------------------------------------------------------------------------
2       PIPE-EDGE READING AND CORRECTION                         1983.4/27      58073061     1989.10/12        2524372
        THEREOF IN TAPERED SCREW CUTTER

----------------------------------------------------------------------------------------------------------------------
3       CUTTING DEVICE FOR STEEP PIPE, ETC.                       1983.7/1      58118183     1990.10/11        1581626

----------------------------------------------------------------------------------------------------------------------
4       Screw joint coupling for oil pipes -                     1984.6/20      59125346      1991.5/31        1605470
        having tapered female sealing
        portion mating with male member
        having convex sealing portion to
        obviate stress corrosion

----------------------------------------------------------------------------------------------------------------------
</TABLE>

                                        2

<PAGE>

<TABLE>
<S>     <C>                                     <C>            <C>           <C>           <C>            <C>
----------------------------------------------------------------------------------------------------------------------
5       THREAD CUTTING METHOD FOR STEEL PIPE                     1992.1/20      04028867      1999.4/24        2773513

----------------------------------------------------------------------------------------------------------------------
7       RIDGE DEBURRING METHOD                                   1993.5/19      05140138       2000.7/7        3085025

----------------------------------------------------------------------------------------------------------------------
8       SCREW JOINT FOR OIL WELL PIPE                            1992.10/9      04297783

----------------------------------------------------------------------------------------------------------------------
10      CUTTING TOOL FOR STEEL PIPE                              1996.6/18      08157107

----------------------------------------------------------------------------------------------------------------------
11      SCREW CUTTING METHOD FOR STEEL PIPE                     1996.12/18      08338107

----------------------------------------------------------------------------------------------------------------------
14      THREADING METHOD FOR STEEL PIPE                          1998.5/27      10145731

----------------------------------------------------------------------------------------------------------------------
</TABLE>

(In Foreign Country)

<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------------
No     Title of Invention                        Country       Application   Application   Registration   Registration
                                                                   Date         Number         Date          Number
----------------------------------------------------------------------------------------------------------------------
<S>    <C>                                       <C>           <C>           <C>           <C>            <C>
4      Screw joint coupling for oil pipes -    Singapore         1984.9/12        487/89     1989.10/12         487/89
       having tapered female sealing portion   -----------------------------------------------------------------------
       mating with male member having convex   United             1984.9/5        647677     1986.11/18        4623173
       sealing portion to obviate stress       States
       corrosion
                                               -----------------------------------------------------------------------
                                               Argentina        1984.9/28        298119      1988.9/30         237793

                                               -----------------------------------------------------------------------
                                               Canada            1984.9/5        462495      1990.5/29        1269684

                                               -----------------------------------------------------------------------
                                               Germany          1984.9/21    P3434763.1       1986.8/7     P3434763.1

                                               -----------------------------------------------------------------------
                                               France           1984.9/18       8414295      1987.9/28        8414295

                                               -----------------------------------------------------------------------
                                               United           1984.9/12       8423055      1988.4/27        2160609
                                               Kingdom

                                               -----------------------------------------------------------------------
                                               Iraq            1984.10/23        164/84

                                               -----------------------------------------------------------------------
                                               Iran             1984.9/25         26424      1985.3/14          22884

                                               -----------------------------------------------------------------------
                                               Italy            1984.9/18     48869A/84      1987.9/16        1179428

                                               -----------------------------------------------------------------------
                                               Kuwait           1984.9/19      115PA/84

                                               -----------------------------------------------------------------------
                                               Mexico           1984.9/14        202701      1990.3/29         160640

                                               -----------------------------------------------------------------------
                                               Norway           1984.9/11        843590     1991.11/13         167526

                                               -----------------------------------------------------------------------
                                               Saudi            1985.1/21                    1985.1/21              1
                                               Arabia

----------------------------------------------------------------------------------------------------------------------
</TABLE>

                                       3

<PAGE>

TenarisBlue Family:
Patent Pending."

3.       AMENDMENT TO SCHEDULE H. TRADEMARKS

Schedule H to the Agreement shall be deemed amended as follows:

             "TENARIS CONNECTIONS B.V./TUBOS DE ACERO DE MEXICO S.A.
                 TENARIS PREMIUM CONNECTIONS TECHNOLOGY LICENSE
                                    AGREEMENT
                                  SCHEDULE "H"
                                   TRADEMARKS

Trademarks under which Licensee is licensed by TENARIS for Threading,
Reconstruction, use or sale of Products and Accessory Equipment pursuant to this
Agreement:

Tenaris NK3SB(C) Family
NK 3SB
NEW NK 3SB
NK 3SB-ST
NK 3SB-SL
NK HW
NK HWSL
NK EL

TenarisBlue (TM) Family

TenarisBlue
TenarisBlue dopeless

4.       NO OTHER CHANGES. NO RELEASE OF LIABILITY

The execution, delivery and effectiveness of this Addendum shall not operate as
an amendment of any other right, power, obligation or remedy set forth in the
Agreement. None of the provisions set forth in this Addendum shall be construed
as an assignment or a release of any obligation or liability of Licensee under
the Agreement.

5.       GOVERNING LAW.

This Addendum shall be governed by the law that governs the Agreement. Any
dispute that may arise in relation to this Addendum shall be resolved as
provided in Section 15.2 of the Agreement.

IN WITNESS WHEREOF, each party has caused this Addendum in two original
counterparts to be subscribed by its duly authorised representative on this 10th
day of November, 2002.

                                       4

<PAGE>

TENARIS CONNECTION BV                  TUBOS DE ACERO DE MEXICO S.A.

By: /s/ Dennis Day                     By: /s/ Felix Todd  /s/ Claudio Gugliuzza
    ----------------------------           -------------------------------------
    HBM Europe B.V.                        Felix Todd/Claudio Gugliuzza
    Title: Managing Director               Title:
    Date:                                  Date:

                                       5<PAGE>
                                                                    Exhibit 4.01

THIS NOTE IS A GLOBAL NOTE WITHIN THE MEANING OF THE INDENTURE HEREINAFTER
REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITARY OR A NOMINEE THEREOF.
UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR NOTES IN CERTIFICATED
FORM, THIS NOTE MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITORY TRUST
COMPANY, A NEW YORK CORPORATION ("DTC"), TO A NOMINEE OF DTC OR BY DTC OR ANY
SUCH NOMINEE TO A SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR
DEPOSITARY. UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF DTC
TO CITIGROUP GLOBAL MARKETS HOLDINGS INC. OR ITS AGENT FOR REGISTRATION OF
TRANSFER, EXCHANGE OR PAYMENT, AND ANY NOTE ISSUED IS REGISTERED IN THE NAME OF
CEDE & CO. OR IN SUCH OTHER NAME AS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF
DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER
USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS
THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

No. R-1                                             INITIAL PRINCIPAL AMOUNT
CUSIP  173073 85 9                                  REPRESENTED $37,500,000
                                                    representing 3,750,000 ELKS
                                                    ($10 per ELKS)

                     CITIGROUP GLOBAL MARKETS HOLDINGS INC.

                   Equity Linked Securities (ELKS(SM)) based upon
     the Common Stocks of American International Group, Inc., Dell Computer
    Corporation, E.I. du Pont de Nemours and Company, McDonald's Corporation
                   and Wal-Mart Stores, Inc. due June 28, 2004

         Citigroup Global Markets Holdings Inc., a New York corporation
(hereinafter referred to as the "Company", which term includes any successor
corporation under the Indenture herein referred to), for value received and on
condition that this Note is not redeemed by the Company prior to June 28, 2004
(the "Stated Maturity Date"), hereby promises to pay to CEDE & CO., or its
registered assigns, the Maturity Payment (as defined below), on the Stated
Maturity Date. This Note will bear semi-annual payments of interest, is not
subject to any sinking fund, is not subject to redemption at the option of the
Holder thereof prior to the Stated Maturity Date, and is not subject to the
defeasance provisions of the Indenture.

         Payment of the Maturity Payment with respect to this Note shall be made
upon presentation and surrender of this Note at the corporate trust office of
the Trustee in the Borough of Manhattan, The City and State of New York, in such
coin or currency of the United States as at the time of payment is legal tender
for payment of public and private debts or, if applicable, in the common stocks
of American International Group, Inc. ("AIG"), Dell Computer Corporation
("Dell"), E.I. du Pont de Nemours and Company ("DuPont"), McDonald's Corporation
("McDonald's") and Wal-Mart Stores, Inc. ("Wal-Mart").

<PAGE>

         This Note is one of the series of Equity Linked Securities based upon
the common stocks of AIG, Dell, DuPont, McDonalds and Wal-Mart due June 28, 2004
(the "ELKS").

COUPON

         A coupon of $0.6033 per ELKS will be paid in cash on December 28, 2003
and a coupon of $0.6000 per ELKS will be paid in cash on June 28, 2004. The
December 28, 2003 coupon will be composed of $0.0452 of interest and a partial
payment of an option premium in the amount of $0.5581. The June 28, 2004 coupon
will be composed of $0.0449 of interest and a partial payment of an option
premium in the amount of $0.5551. Coupon payments will be payable to the persons
in whose names the ELKS are registered at the close of business on the fifth
Business Day preceding each Interest Payment Date. If an Interest Payment Date
falls on a day that is not a Business Day, the coupon payment to be made on such
Interest Payment Date will be made on the next succeeding Business Day with the
same force and effect as if made on such Interest Payment Date, and no
additional interest will accrue as a result of such delayed payment.

         "Business Day" means any day that is not a Saturday, a Sunday or a day
on which the AMEX or banking institutions or trust companies in the City of New
York are authorized or obligated by law or executive order to close.

         The interest portion of the coupon will represent interest accruing at
a rate of 0.899% per annum from June 27, 2003 or from the most recent Interest
Payment Date to which the interest portion of the coupon has been paid or
provided for until maturity. The interest portion of the coupon will be computed
on the basis of a 360-day year of twelve 30-day months.

PAYMENT AT MATURITY

         On the Stated Maturity Date, Holders of the ELKS will receive for each
ELKS the Maturity Payment described below.

DETERMINATION OF THE MATURITY PAYMENT

         The Maturity Payment for each ELKS equals either:

         -        a number of shares of the underlying stock that has
                  experienced the greatest Percentage Decline equal to the
                  Exchange Ratio for that underlying stock, if the Closing Price
                  of that stock on the third Trading Day before the Stated
                  Maturity Date is less than 90% of its Initial Share Price, or

         -        $10 in cash.

         In lieu of any fractional share of any stock otherwise payable in
respect of any ELKS, at the Stated Maturity Date, the Holder of this Note will
receive an amount in cash equal to the value of such fractional share. The
number of full shares of stock, and any cash in lieu of a fractional share, to
be delivered at the Stated Maturity Date to the Holder of this Note will be
calculated based on the aggregate number of ELKS held by such Holder.

                                       2

<PAGE>

         For purposes of calculating the Maturity Payment, the "Percentage
Decline" experienced by any underlying stock shall be equal to a fraction, the
numerator of which is (a) the Initial Share Price of that underlying stock minus
(b) the Closing Price of that underlying stock on the third Trading Day before
the Stated Maturity Date, and the denominator of which is the Initial Share
Price of that underlying stock. If the numerator of the fraction described in
the preceding sentence is a negative number with respect to any underlying
stock, the Percentage Decline experienced by that underlying stock will be
deemed to equal zero.

         The "Initial Share Price" equals:

         -        $56.89 with respect to the common stock of AIG, the Closing
                  Price of that common stock on June 24, 2003;

         -        $31.38 with respect to the common stock of Dell, the Closing
                  Price of that common stock on June 24, 2003;

         -        $41.77 with respect to the common stock of DuPont, the Closing
                  Price of that common stock on June 24, 2003;

         -        $22.53 with respect to the common stock of McDonald's, the
                  Closing Price of that common stock on June 24, 2003; and

         -        $54.68 with respect to the common stock of Wal-Mart, the
                  Closing Price of that common stock on June 24, 2003.

         The "Exchange Ratio" equals:

         -        0.19531 with respect to the common stock of AIG;

         -        0.35408 with respect to the common stock of Dell;

         -        0.26601 with respect to the common stock of DuPont;

         -        0.49317 with respect to the common stock of McDonald's; and

         -        0.20320 with respect to the common stock of Wal-Mart.

         The "Closing Price" of any underlying stock (or any other security for
which a Closing Price must be determined) on any date of determination will be
(1) if that underlying stock or security is listed on a national securities
exchange on that date of determination, the closing sale price or, if no closing
sale price is reported, the last reported sale price on that date on the
principal U.S. exchange on which that underlying stock or security is listed or
admitted to trading, (2) if that underlying stock or security is not listed on a
national securities exchange on that date of determination, or if the closing
sale price or last reported sale price is not obtainable (even if that
underlying stock or security is listed or admitted to trading on such exchange),
and that underlying stock or security is quoted on the Nasdaq National Market,
the closing sale price or, if no closing sale price is reported, the last
reported sale price on that date as reported on the Nasdaq, and (3) if that
underlying stock or security is not quoted on the Nasdaq on that date of
determination or, if the closing sale price or last reported sale price is not
obtainable (even if that underlying stock or security is quoted on the Nasdaq),
the last quoted bid price for that underlying stock or security in the
over-the-counter market on that date as reported by the OTC

                                       3

<PAGE>

Bulletin Board, the National Quotation Bureau or a similar organization. If no
closing sale price or last reported sale price is available pursuant to clauses
(1), (2) or (3) of the preceding sentence or if there is a Market Disruption
Event, the Closing Price on any date of determination will be the arithmetic
mean, as determined by the calculation agent, of the bid prices of the
applicable underlying stock or security obtained from as many dealers in such
stock or security (which may include Citigroup Global Markets Inc. or any of our
other subsidiaries or affiliates), but not exceeding three such dealers, as will
make such bid prices available to the calculation agent. A security "quoted on
the Nasdaq National Market" will include a security included for listing or
quotation in any successor to such system and the term "OTC Bulletin Board" will
include any successor to such service.

         A "Market Disruption Event" means the occurrence or existence of any
suspension of or limitation imposed on trading (by reason of movements in price
exceeding limits permitted by any exchange or market or otherwise) of, or the
unavailability, through a recognized system of public dissemination of
transaction information, of accurate price, volume or related information in
respect of, (1) the shares of any underlying stock (or any other security for
which a Closing Price must be determined) on any exchange or market, or (2) any
options contracts or futures contracts relating to the shares of any underlying
stock (or other security), or any options on such futures contracts, on any
exchange or market if, in each case, in the determination of the calculation
agent, any such suspension, limitation or unavailability is material.

         A "Trading Day" means a day, as determined by the calculation agent, on
which trading is generally conducted (or was scheduled to have been generally
conducted, but for the occurrence of a Market Disruption Event) on the New York
Stock Exchange, the AMEX, the Nasdaq National Market, the Chicago Mercantile
Exchange and the Chicago Board Options Exchange, and in the over-the-counter
market for equity securities in the United States.

         If two or more underlying stocks have experienced the same percentage
decline in price from June 24, 2003 to the third Trading Day before maturity, as
determined by the calculation agent, and if their closing prices on the third
Trading Day before maturity are less than 90% of their Initial Share Prices,
then the Holder of this Note will receive at maturity shares of each of those
underlying stocks. The number of shares of each of those underlying stocks that
the Holder of this Note will receive per ELKS in this case will be equal to the
Exchange Ratio for that underlying stock divided by the number of underlying
stocks that have experienced the same percentage decline in price.

DILUTION ADJUSTMENTS

         If the issuer of any underlying stock, after the closing date of the
offering of the ELKS,

         (1)      pays a stock dividend or makes a distribution with respect to
                  its common stock in shares of the stock,

         (2)      subdivides or splits the outstanding shares of its common
                  stock into a greater number of shares,

                                       4

<PAGE>

         (3)      combines the outstanding shares of its common stock into a
                  smaller number of shares, or

         (4)      issues by reclassification of shares of its common stock any
                  shares of other common stock of that issuer,

then, in each of these cases, the Exchange Ratio for that underlying stock will
be multiplied by a dilution adjustment equal to a fraction, the numerator of
which will be the number of shares of common stock outstanding immediately after
the event, plus, in the case of a reclassification referred to in (4) above, the
number of shares of other common stock of that issuer, and the denominator of
which will be the number of shares of common stock outstanding immediately
before the event. The Initial Share Price of that underlying stock will also be
adjusted in that case in the manner described below.

         If the issuer of an underlying stock, after the closing date, issues,
or declares a record date in respect of an issuance of, rights or warrants to
all holders of its common stock entitling them to subscribe for or purchase
shares of its common stock at a price per share less than the Then-Current
Market Price of that underlying stock, other than rights to purchase common
stock pursuant to a plan for the reinvestment of dividends or interest, then, in
each of these cases, the Exchange Ratio for that underlying stock will be
multiplied by a dilution adjustment equal to a fraction, the numerator of which
will be the number of shares of common stock of that issuer outstanding
immediately before the adjustment is effected, plus the number of additional
shares of common stock offered for subscription or purchase pursuant to the
rights or warrants, and the denominator of which will be the number of shares of
common stock of that issuer outstanding immediately before the adjustment is
effected by reason of the issuance of the rights or warrants, plus the number of
additional shares of common stock which the aggregate offering price of the
total number of shares of common stock offered for subscription or purchase
pursuant to the rights or warrants would purchase at the Then-Current Market
Price of that underlying stock, which will be determined by multiplying the
total number of shares so offered for subscription or purchase by the exercise
price of the rights or warrants and dividing the product obtained by the
Then-Current Market Price of that underlying stock. To the extent that, after
the expiration of the rights or warrants, the shares of common stock offered
thereby have not been delivered, the Exchange Ratio for that underlying stock
will be further adjusted to equal the Exchange Ratio which would have been in
effect had the adjustment for the issuance of the rights or warrants been made
upon the basis of delivery of only the number of shares of common stock actually
delivered. The Initial Share Price of that underlying stock will also be
adjusted in that case in the manner described below.

         If the issuer of any underlying stock, after the closing date, declares
or pays a dividend or makes a distribution to all holders of the common stock of
any class of its capital stock, the capital stock of one or more of its
subsidiaries, evidences of its indebtedness or other non-cash assets, excluding
any dividends or distributions referred to in the above paragraph, or issues to
all holders of its common stock rights or warrants to subscribe for or purchase
any of its or one or more of its subsidiaries' securities, other than rights or
warrants referred to in the above paragraph, then, in each of these cases, the
Exchange Ratio for that underlying stock will be multiplied by a dilution
adjustment equal to a fraction, the numerator of which will be the Then-

                                       5

<PAGE>

Current Market Price of one share of that underlying stock, and the denominator
of which will be the Then-Current Market Price of one share of that underlying
stock, less the fair market value (as determined by a nationally recognized
independent investment banking firm retained for this purpose by the Company,
whose determination will be final) as of the time the adjustment is effected of
the portion of the capital stock, assets, evidences of indebtedness, rights or
warrants so distributed or issued applicable to one share of that underlying
stock. The Initial Share Price of that underlying stock will also be adjusted in
that case in the manner described below.

         Notwithstanding the foregoing, in the event that, with respect to any
dividend or distribution to which the above paragraph would otherwise apply, the
denominator in the fraction referred to in the above formula is less than $1.00
or is a negative number, then the Company may, at its option, elect to have the
adjustment provided by the above paragraph not be made and, in lieu of this
adjustment, the Closing Price of the applicable underlying stock on the third
Trading Date before the Stated Maturity Date will be deemed to be equal to the
fair market value of the capital stock, assets, evidences of indebtedness,
rights or warrants (determined, as of the date this dividend or distribution is
made, by a nationally recognized independent investment banking firm retained
for this purpose by the Company, whose determination will be final) so
distributed or issued applicable to one share of that underlying stock and, if
that underlying stock has experienced the greatest Percentage Decline, each
holder of the ELKS will have the right to receive at maturity cash in an amount
per ELKS equal to the Exchange Ratio for that underlying stock multiplied by
such fair market value.

         If the issuer of any underlying stock, after the closing date, declares
a record date in respect of a distribution of cash, other than any Permitted
Dividends described below, any cash distributed in consideration of fractional
shares of common stock and any cash distributed in a Reorganization Event
referred to below, by dividend or otherwise, to all holders of its common stock,
or makes an Excess Purchase Payment, then the Exchange Ratio for that underlying
stock will be multiplied by a dilution adjustment equal to a fraction, the
numerator of which will be the Then-Current Market Price of that underlying
stock, and the denominator of which will be the Then-Current Market Price of
that underlying stock on the record date less the amount of the distribution
applicable to one share of common stock which would not be a Permitted Dividend,
or, in the case of an Excess Purchase Payment, less the aggregate amount of the
Excess Purchase Payment for which adjustment is being made at the time divided
by the number of shares of common stock outstanding on the record date. The
Initial Share Price of that underlying stock will also be adjusted in that case
in the manner described below.

         For the purposes of these adjustments:

         A "Permitted Dividend" in respect of any underlying stock is any
quarterly cash dividend in respect of that underlying stock, other than a
quarterly cash dividend that exceeds the immediately preceding quarterly cash
dividend, and then only to the extent that the per share amount of this dividend
results in an annualized dividend yield on that underlying stock in excess of
10%.

         An "Excess Purchase Payment" in respect of any underlying stock is the
excess, if any, of (x) the cash and the value (as determined by a nationally
recognized independent investment

                                       6

<PAGE>

banking firm retained for this purpose by the Company, whose determination will
be final) of all other consideration paid by the issuer of that underlying stock
with respect to one share of underlying stock acquired in a tender offer or
exchange offer by that issuer, over (y) the Then-Current Market Price of that
underlying stock.

         Notwithstanding the foregoing, in the event that, with respect to any
dividend or distribution or Excess Purchase Payment to which the fifth paragraph
in this section would otherwise apply, the denominator in the fraction referred
to in the formula in that paragraph is less than $1.00 or is a negative number,
then the Company may, at its option, elect to have the adjustment provided by
the fifth paragraph in this section not be made, and, in lieu of this
adjustment, the Closing Price of the applicable underlying stock on the third
Trading Day before the Stated Maturity Date will be deemed to be equal to the
sum of the amount of cash and the fair market value of other consideration
(determined, as of the date this dividend or distribution is made, by a
nationally recognized independent investment banking firm retained for this
purpose by the Company, whose determination will be final) so distributed or
applied to the acquisition of the stock in the tender offer or exchange offer
applicable to one share of that underlying stock and, if that underlying stock
has experienced the greatest Percentage Decline, each holder of the ELKS will
have the right to receive at maturity cash in an amount per ELKS equal to the
Exchange Ratio for that underlying stock multiplied by such sum.

         If any adjustment is made to the Exchange Ratio for any underlying
stock as set forth above, an adjustment will also be made to the Initial Share
Price for that stock. The required adjustment will be made by dividing the
Initial Share Price for that stock by the relevant dilution adjustment. If,
during any period of ten Trading Days used to calculate the Then-Current Market
Price, there occurs any event requiring an adjustment to be effected as
described herein, then the Closing Price for each Trading Day in such period of
ten Trading Days occurring prior to the day on which such adjustment is effected
will be adjusted by being divided by a relevant dilution adjustment.

         Each dilution adjustment will be effected as follows:

         -        in the case of any dividend, distribution or issuance in
                  respect of any underlying stock, at the opening of business on
                  the Business Day next following the record date for
                  determination of holders of that stock entitled to receive
                  this dividend, distribution or issuance or, if the
                  announcement of this dividend, distribution, or issuance is
                  after this record date, at the time this dividend,
                  distribution or issuance was announced by the issuer of that
                  stock,

         -        in the case of any subdivision, split, combination or
                  reclassification in respect of any underlying stock, on the
                  effective date of the transaction,

         -        in the case of any Excess Purchase Payment in respect of any
                  underlying stock for which the issuer of that stock announces,
                  at or prior to the time it commences the relevant share
                  repurchase, the repurchase price per share for shares proposed
                  to be repurchased, on the date of the announcement, and

                                       7

<PAGE>

         -        in the case of any other Excess Purchase Payment in respect of
                  any underlying stock, on the date that the holders of the
                  repurchased shares become entitled to payment in respect
                  thereof.

         All dilution adjustments will be rounded upward or downward to the
nearest 1/10,000th or, if there is not a nearest 1/10,000th, to the next lower
1/10,000th. No adjustment in the Exchange Ratio for any underlying stock will be
required unless the adjustment would require an increase or decrease of at least
one percent therein, provided, however, that any adjustments which by reason of
this sentence are not required to be made will be carried forward (on a
percentage basis) and taken into account in any subsequent adjustment. If any
announcement or declaration of a record date in respect of a dividend,
distribution, issuance or repurchase in respect of any underlying stock
requiring an adjustment as described herein is subsequently canceled by the
issuer of that stock, or this dividend, distribution, issuance or repurchase
fails to receive requisite approvals or fails to occur for any other reason,
then, upon the cancellation, failure of approval or failure to occur, the
Exchange Ratio and the Initial Share Price for that stock will be further
adjusted to the Exchange Ratio and the Initial Share Price which would then have
been in effect had adjustment for the event not been made. If a Reorganization
Event described below occurs after the occurrence of one or more events
requiring an adjustment as described herein, the dilution adjustments previously
applied to the Exchange Ratio will not be rescinded but will be applied to the
Reorganization Event as provided for below.

         The "Then-Current Market Price" of any underlying stock, for the
purpose of applying any dilution adjustment, means the average Closing Price per
share of that stock for the 10 Trading Days immediately before this adjustment
is effected or, in the case of an adjustment effected at the opening of business
on the Business Day next following a record date, immediately before the earlier
of the date the adjustment is effected and the related Ex-Date. For purposes of
determining the Then-Current Market Price, the determination of the Closing
Price by the calculation agent in the event of a Market Disruption Event, as
described in the definition of Closing Price, may be deferred by the calculation
agent for up to five consecutive Trading Days on which a Market Disruption Event
is occurring.

         The "Ex-Date" with respect to any dividend, distribution or issuance in
respect of any underlying stock is the first date on which the shares of that
stock trade in the regular way on their principal market without the right to
receive this dividend, distribution or issuance.

         In the event of any of the following "Reorganization Events":

         -        any consolidation or merger of the issuer of any underlying
                  stock, or any surviving entity or subsequent surviving entity
                  of that issuer, with or into another entity, other than a
                  merger or consolidation in which that issuer is the continuing
                  corporation and in which the common stock outstanding
                  immediately before the merger or consolidation is not
                  exchanged for cash, securities or other property of that
                  issuer or another issuer,

                                       8

<PAGE>

         -        any sale, transfer, lease or conveyance to another entity of
                  the property of the issuer of any underlying stock or any
                  successor as an entirety or substantially as an entirety,

         -        any statutory exchange of securities of the issuer of any
                  underlying stock or any successor of that issuer with another
                  issuer, other than in connection with a merger or acquisition,
                  or

         -        any liquidation, dissolution or winding up of the issuer of
                  any underlying stock or any successor of that issuer,

the Closing Price of that underlying stock will be deemed to be equal to the
Transaction Value in respect of that underlying stock.

         The "Transaction Value" in respect of any underlying stock will be the
sum of:

         (1)      for any cash received in a Reorganization Event, the amount of
                  cash received per share of the underlying stock,

         (2)      for any property other than cash or Marketable Securities
                  received in a Reorganization Event, an amount equal to the
                  market value on the date the Reorganization Event is
                  consummated of that property received per share of the
                  underlying stock, as determined by a nationally recognized
                  independent investment banking firm retained for this purpose
                  by the Company, whose determination will be final, and

         (3)      for any Marketable Securities received in a Reorganization
                  Event, an amount equal to the Closing Price per share of these
                  Marketable Securities on the third Trading Day before the
                  Stated Maturity Date multiplied by the number of these
                  Marketable Securities received for each share of the
                  underlying stock.

         "Marketable Securities" are any perpetual equity securities or debt
securities with a stated maturity after the maturity date, in each case that are
listed on a U.S. national securities exchange or reported by the Nasdaq Stock
Market. The number of shares of any equity securities constituting Marketable
Securities included in the calculation of Transaction Value pursuant to clause
(3) above will be adjusted if any event occurs with respect to the Marketable
Securities or the issuer of the Marketable Securities between the time of the
Reorganization Event and maturity that would have required an adjustment as
described above, had it occurred with respect to any underlying stock or any
issuer of underlying stock. Adjustment for these subsequent events will be as
nearly equivalent as practicable to the adjustments described above.

         If the underlying stock that has experienced the greatest Percentage
Decline has been subject to a Reorganization Event, then each Holder will have
the right to receive at maturity cash in an amount per ELKS equal to the
Exchange Ratio for that underlying stock multiplied by the Transaction Value.

                                       9

<PAGE>

GENERAL

         This Note is one of a duly authorized issue of Debt Securities of the
Company, issued and to be issued in one or more series under a Senior Debt
Indenture, dated as of October 27, 1993, as supplemented by a First Supplemental
Indenture, dated as of November 28, 1997, a Second Supplemental Indenture, dated
as of July 1, 1999, and as further supplemented from time to time (the
"Indenture"), between the Company and The Bank of New York, as Trustee (the
"Trustee", which term includes any successor trustee under the Indenture), to
which Indenture reference is hereby made for a statement of the respective
rights, limitations of rights, duties and immunities thereunder of the Company,
the Trustee and the Holders of the ELKS, and the terms upon which the ELKS are,
and are to be, authenticated and delivered.

         If an Event of Default with respect to the ELKS shall have occurred and
be continuing, the principal of the ELKS may be declared due and payable in the
manner and with the effect provided in the Indenture. In such case, the amount
declared due and payable upon any acceleration permitted by the Indenture will
be determined by the calculation agent and will be equal to, with respect to
this Note, the Maturity Payment calculated as though the Stated Maturity Date of
this Note were the date of early repayment. In case of default at Maturity of
this Note, this Note shall bear interest, payable upon demand of the beneficial
owners of this Note in accordance with the terms of the ELKS, from and after
Maturity through the date when payment of such amount has been made or duly
provided for, at the rate of 1.5% per annum on the unpaid amount (or the cash
equivalent of such unpaid amount) due.

         The Indenture permits, with certain exceptions as therein provided, the
amendment thereof and the modification of the rights and obligations of the
Company and the rights of the Holders of the Debt Securities of each series to
be affected under the Indenture at any time by the Company and a majority in
aggregate principal amount of the Debt Securities at the time Outstanding of
each series affected thereby. The Indenture also contains provisions permitting
the Holders of specified percentages in aggregate principal amount of the Debt
Securities of any series at the time Outstanding, on behalf of the Holders of
all Debt Securities of such series, to waive compliance by the Company with
certain provisions of the Indenture and certain past defaults under the
Indenture and their consequences. Any such consent or waiver by the Holder of
this Note shall be conclusive and binding upon such Holder and upon all future
Holders of this Note and of any Note issued upon the registration of transfer
hereof or in exchange herefor or in lieu hereof, whether or not notation of such
consent or waiver is made upon this Note.

         The Holder of this Note may not enforce such Holder's rights pursuant
to the Indenture or the Notes except as provided in the Indenture. No reference
herein to the Indenture and no provision of this Note or of the Indenture shall
alter or impair the obligation of the Company to pay the Maturity Payment with
respect to this Note, and to pay any interest on any overdue amount thereof at
the time, place and rate, and in the coin or currency, herein prescribed.

         All terms used in this Note which are defined in the Indenture but not
in this Note shall have the meanings assigned to them in the Indenture.

                                       10

<PAGE>

         Unless the certificate of authentication hereon has been executed by
the Trustee by manual signature, this Note shall not be entitled to any benefit
under the Indenture or be valid or obligatory for any purposes.

                                       11

<PAGE>

         IN WITNESS WHEREOF, the Company has caused this instrument to be duly
executed under its corporate seal.

                           CITIGROUP GLOBAL MARKETS HOLDINGS
                           INC.
                           By: /s/ Mark Kleinman
                             --------------------------------
                             Name: Mark I. Kleinman
                             Title: Executive Vice President and Treasurer

Corporate Seal
Attest:

By:/s/ Douglas C. Turnbull
   ---------------------------------
   Name: Douglas C. Turnbull
   Title: Assistant Secretary

Dated June 27, 2003

CERTIFICATE OF AUTHENTICATION
   This is one of the Notes referred to in
   the within-mentioned Indenture.

The Bank of New York,
as Trustee

By:/s/ Geovanni Barris
   ----------------------------------
   Authorized Signatory

                                       12

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