RELEASE

      1. Except as set forth in paragraph 2, MAXXAM Inc., Federated Development
Company, and Charles E. Hurwitz (collectively, the "Respondents"), for
themselves, for their legal representatives, predecessors, successors, and
assigns, and for all persons, agencies or entities in privity with them, do
hereby remise, give up, quit-claim, settle, compromise, forever discharge and
fully, generally and unconditionally release, acquit and forever discharge the
Office of Thrift Supervision, including its assigns, successors, predecessors,
subsidiaries, affiliates, officers, directors, agents, employees, servants,
attorneys and other representatives ("OTS"), from any and all claims, suits,
controversies, accounts, covenants, promises, judgments, damages, executions,
causes of action, rights, duties, debts, liabilities, demands, obligations,
contracts, agreements, costs, and actions of any kind and character, at law or
in equity (including claims brought under statutes and regulations of the United
States or any agency of the United States), whether or not well founded in law
or fact, whether known or unknown, suspected or unsuspected, direct or indirect,
relating to, arising out of, or in connection with the ownership or operation
of, or with any activities of, United Savings Association of Texas, Houston,
Texas ("USAT"), United Financial Group, Houston, Texas ("UFG"), MAXXAM, Inc., or
Federated Development Company, or of any activities of the OTS with respect to
the Respondents, including, without limitation, claims that were asserted or
which could have been asserted in the administrative proceeding captioned In the
Matter of United Savings Association of Texas, OTS Order No. 95-40 (December
26,1995), or in the civil action captioned FDIC v. Hurwitz, No. 95-3956, United
States District Court for the Southern District of Texas, or in any other court,
forum or proceeding. The Respondents expressly warrant to the OTS that no
claims, demands, controversies, actions, causes of action, liabilities, damages,
injuries, losses, or other rights of the Respondents that otherwise would fall
within the subject matter of the above-captioned administrative proceeding or
civil action have been assigned, conveyed, or in any manner transferred to any
person, agency or entity.

      2. The Respondents do not undertake to settle, release or relinquish any
claims against any person or entity other than the OTS, its assigns, successors,
predecessors, subsidiaries, affiliates, officers, directors, agents, employees,
servants, attorneys and other representatives. Respondents specifically do not
undertake to release or relinquish claims against the FDIC (acting in any
capacity), its officers, directors, agents, servants, employees, attorneys or
other representatives.


/s/ Charles E. Hurwitz
-----------------------------
Charles E. Hurwitz

Date:  October 16, 2002



MAXXAM, Inc.


By:    /s/ Paul N. Schwartz
       ------------------------


Date:  October 16, 2002



FEDERATED DEVELOPMENT COMPANY


By:    /s/ Charles E. Hurwitz
       ------------------------

Date:  October 16, 2002