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|                                             |               Page |
|--------------------------------------------------|------------------------------------------------------------|
|                                             |
| SECTION      I - DEFINITIONS                     | 1                                                          |
| 1.1                                              | Administrative      Committee                              | 1 |
| 1.2                                              | Code                                                       | 1 |
| 1.3                                              | Company                                                    | 1 |
| 1.4                                              | Effective Date                                             | 1 |
| 1.5                                              | Employer                                                   | 1 |
| 1.6                                              | 409A                                                       | 1 |
| 1.7                                              | Participant                                                | 1 |
| 1.8                                              | Pension Plan                                               | 2 |
| 1.9                                              | Plan                                                       | 2 |
|                                             |
| SECTION      II – BENEFITS                 | 2                                                          |
| 2.1                                              | Amount of    Benefits                                      | 2 |
| 2.2                                              | Time and Form of Payment of      Benefits                  | 2 |
| 2.3                                              | Death Benefits                                             | 2 |
| 2.4                                              | Payment Dates                                              | 3 |
|                                             |
| SECTION      III – LIABILITY FOR PAYMENTS  | 3                                                          |
| 3.1                                              | In General                                                 | 3 |
| 3.2                                              | Unfunded Plan                                              | 3 |
|                                             |
| SECTION      IV – ADMINISTRATION           | 3                                                          |
|                                             |
| SECTION      V – AMENDMENT AND TERMINATION | 3                                                          |
|                                             |
| SECTION      VI – MISCELLANEOUS            | 4                                                          |
| 6.1                                              | No Employment      Rights                                  | 4 |
| 6.2                                              | Forfeiture                                                 | 4 |
| 6.3                                              | Non-Alienation of      Benefits                            | 4 |
| 6.4                                              | Claims    Procedure                                        | 4 |
| 6.5                                              | Liability Limited and      Indemnification                 | 4 |
| 6.6                                              | TaxWithholding                                             | 5 |
| 6.7                                              | Separability                                               | 5 |
| 6.8                                              | Captions                                                   | 5 |
| 6.9                                              | Usage                                                      | 5 |
| 6.10                                             | Governing Laws                                             | 5 |

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|   |   | MAXXAM      INC.             |
|--------|--------|------------------------------|
|   |   |                         |
|   | By:    | /s/      M. Emily Madison    |
|   |   | M.      Emily Madison        |
|   |   | Vice      President, Finance |

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