Item 1.01 Entry into a Material Definitive Agreement
On October 31, 2008, Friedman Industries, Incorporated (the "Company") entered into a Consulting Agreement with Jack Friedman, a director of the Company. Mr. Friedman also has served the Company previously in various executive officer capacities, including most recently, until February 2006, as Chairman and Chief Executive Officer. The Consulting Agreement provides that the Company will engage Mr. Friedman to provide such advisory or consulting services to the Company as may be requested by the Board of Directors of the Company, the Chief Executive Officer of the Company or any Senior Vice President of the Company from time to time during the term of the agreement. The Company has agreed to pay Mr. Friedman an annual fee of $13,200, payable in monthly installments of $1,100, for an initial term ending December 31, 2009 (subject to earlier termination upon certain specified events), and, thereafter, for automatically renewing successive one-year terms (subject to earlier termination upon such specified events and the Company's right to terminate the agreement as of the end of any such one-year term).
A copy of the Consulting Agreement is attached hereto as Exhibit 10.1 and is incorporated herein by reference.
Item 9.01 Financial Statements and Exhibits.
(c) Exhibits

Number Description Consulting Agreement dated October 31, 2008, by and between Jack Friedman 10.1 and Friedman Industries, Incorporated.

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