The Severance Plan has not been filed with the SEC. The following summary is taken from the 2005 Proxy.


MAXXAM Severance Plan


     Severance pay is generally granted to regular  full-time  employees who are

involuntarily  terminated,  subject  to  certain  conditions  and  a  number  of

exclusions,  pursuant to an unfunded  plan.  The plan provides for payment after

such  termination  in an amount  ranging from two weeks' salary for at least one

year of  service  graduating  to a maximum  of 104 weeks'  salary.  The  amounts

payable under the plan if the named executive officers who remain at the Company

had been  involuntarily  terminated  on  December  31,  2004  would have been as

follows:     Mr.     Hurwitz--$1,667,388;     Mr.     Friedman--$95,477;     Mr.

Schwartz--$1,193,368; and Mr. Birkel--$390,000.