Alumax Inc. and Consolidated Subsidiaries - Page 34

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          right to purchase between 51 and 100 percent of the outstanding             
          shares of the Alumax class C common stock from Amax and/or its              
          subsidiaries at a price equal to 50 percent of the stockholder's            
          equity attributable to that stock (Mitsui's purchase right).  In            
          the event that the Mitsui group were to exercise the right to               
          purchase some or all of the Alumax class C common stock, the Amax           
          group stockholders would have the right to prevent such purchase            
          and to convert 100 percent of the Alumax class C common stock               
          into the Alumax class A common stock which was to have the same             
          rights as the class A common stock had prior to the 1984 restruc-           
          turing (Amax' conversion right).9  In the event that the Amax               
          group stockholders were to exercise that conversion right, the              
          Mitsui group would no longer have the right to purchase any of              
          the Alumax class C common stock held by Amax and/or its subsid-             
          iaries.  (We shall refer to the provisions in the 1984 stockhold-           
          ers agreement and in the 1984 restated certificate of incorpora-            
          tion relating to the rights granted to the Mitsui group with                
          respect to actions of the Alumax board and the Alumax stockhold-            
          ers that the Mitsui group determined could have a material and              
          adverse effect on its investment in Alumax as the objectionable             
          action provision.)                                                          
               The remaining specified events that would trigger the Mitsui           


          9  The Amax group stockholders had the right to exercise Amax'              
          conversion right at any time after Dec. 31, 1988, without any               
          prior action by the Mitsui group.                                           




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