FRIEDMAN INDUSTRIES INC
LETTER AGREEMENT
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<TYPE>EX-10.2
<SEQUENCE>4
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<DESCRIPTION>LETTER AGREEMENT
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<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><B>Exhibit&nbsp;10.2</B>
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<DIV align="center" style="font-size: 10pt; margin-top: 18pt">Mr.&nbsp;Jack Friedman<BR>
14 Stonegate<BR>
Longview, Texas 75601
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<DIV align="center" style="font-size: 10pt; margin-top: 18pt">February&nbsp;8, 2006
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<DIV align="left" style="font-size: 10pt; margin-top: 12pt">The Board of Directors of<br>
Friedman Industries, Incorporated<br>
1121 Judson Road, Suite&nbsp;124<br>
Longview, Texas 75601
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Gentlemen:
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Effective as of the close of business on the date hereof, I hereby resign my position (i)&nbsp;as
Chairman of the Board and Chief Executive Officer of Friedman Industries, Incorporated, a
Texas corporation (the &#147;Company&#148;), from any other officer position I may hold with the Company
and from any director or officer position I may hold with any subsidiary of the Company and (ii)
retire from full-time employment with the Company.
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;It is my understanding that, following my resignation, the Company will continue to provide me
with office facilities and secretarial assistance on the same basis as has been provided to me
during the period of my full-time employment.
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If the foregoing correctly sets forth our understanding, please sign the enclosed copy of this
letter in the space provided.
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    <TD align="left" valign="top">Sincerely,</TD>
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    <TD align="left" valign="top">/s/ JACK FRIEDMAN</TD>
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    <TD align="left" valign="top">Jack Friedman</TD>
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<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Agreed and accepted:
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">FRIEDMAN INDUSTRIES, INCORPORATED
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">By: <U>/s/ WILLIAM E. CROW</U><BR>
Name: William E. Crow<BR>
Title: President and COO
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