<SUBMISSION>
<ACCESSION-NUMBER>0001047469-03-017763
<TYPE>PREM14A
<PUBLIC-DOCUMENT-COUNT>1
<FILING-DATE>20030509
<FILER>
<COMPANY-DATA>
<CONFORMED-NAME>BALTEK CORP
<CIK>0000009442
<ASSIGNED-SIC>2430
<IRS-NUMBER>132646117
<STATE-OF-INCORPORATION>DE
<FISCAL-YEAR-END>1231
</COMPANY-DATA>
<FILING-VALUES>
<FORM-TYPE>PREM14A
<ACT>34
<FILE-NUMBER>000-07395
<FILM-NUMBER>03690893
</FILING-VALUES>
<BUSINESS-ADDRESS>
<STREET1>10 FAIRWAY CT
<STREET2>P O BOX 195
<CITY>NORTHVALE
<STATE>NJ
<ZIP>07647
<PHONE>2017671400
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>10 FAIRWAY COURT
<STREET2>P O BOX 195
<CITY>NORTHVALE
<STATE>NJ
<ZIP>07647
</MAIL-ADDRESS>
<FORMER-COMPANY>
<FORMER-CONFORMED-NAME>HKL CORP
<DATE-CHANGED>19730906
</FORMER-COMPANY>
</FILER>
<DOCUMENT>
<TYPE>PREM14A
<SEQUENCE>1
<FILENAME>a2110420zprem14a.htm
<DESCRIPTION>PREM14A
<TEXT>
<HTML>
<HEAD>

</HEAD>
<BODY BGCOLOR="#FFFFFF" LINK=BLUE  VLINK=PURPLE>
<BR>
<FONT SIZE=3 ><A HREF="#03NYC4672_1">QuickLinks</A></FONT>
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<P ALIGN="CENTER"><FONT SIZE=2><B>SCHEDULE 14A INFORMATION</B></FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>Proxy
Statement Pursuant to Section&nbsp;14(a) of<BR>
the Securities Exchange Act of 1934 </FONT></P>

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<TR VALIGN="TOP">
<TD COLSPAN=3><FONT SIZE=2>Filed by the Registrant <FONT FACE="WINGDINGS">&#253;</FONT></FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=3><FONT SIZE=2><BR>
Filed by a Party other than the Registrant <FONT FACE="WINGDINGS">&#111;</FONT></FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=3><FONT SIZE=2><BR>
Check the appropriate box:</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="2%"><FONT SIZE=2><BR>
<FONT FACE="WINGDINGS">&#253;</FONT></FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="95%"><FONT SIZE=2><BR>
Preliminary Proxy Statement</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="2%"><FONT SIZE=2><BR>
<FONT FACE="WINGDINGS">&#111;</FONT></FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="95%"><BR><FONT SIZE=2><B>Confidential, for Use of the Commission Only (as permitted by Rule&nbsp;14a-6(e)(2))</B></FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="2%"><FONT SIZE=2><BR>
<FONT FACE="WINGDINGS">&#111;</FONT></FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="95%"><FONT SIZE=2><BR>
Definitive Proxy Statement</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="2%"><FONT SIZE=2><BR>
<FONT FACE="WINGDINGS">&#111;</FONT></FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="95%"><FONT SIZE=2><BR>
Definitive Additional Materials</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="2%"><FONT SIZE=2><BR>
<FONT FACE="WINGDINGS">&#111;</FONT></FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="95%"><FONT SIZE=2><BR>
Soliciting Material Pursuant to &sect; 240.14a-11(c) or &sect;&nbsp;240.14a-12<BR></FONT>
</TD>
</TR>
</TABLE>
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<TD COLSPAN=5 ALIGN="CENTER"><BR><FONT SIZE=2><B>Baltek Corporation</B></FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=5 ALIGN="CENTER"><HR NOSHADE><FONT SIZE=2> (Name of Registrant as Specified in its Charter)</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=5 ALIGN="CENTER"><BR><FONT SIZE=2><B>Not Applicable</B></FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=5 ALIGN="CENTER"><HR NOSHADE><FONT SIZE=2> (Name of Person(s) Filing Proxy Statement if other than the Registrant)</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="90%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=5><FONT SIZE=2>Payment of Filing Fee (Check the appropriate box):</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="2%"><FONT SIZE=2><BR>
<FONT FACE="WINGDINGS">&#111;</FONT></FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD COLSPAN=3><FONT SIZE=2><BR>
No fee required.</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="2%"><FONT SIZE=2><BR>
<FONT FACE="WINGDINGS">&#253;</FONT></FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD COLSPAN=3><FONT SIZE=2><BR>
Fee computed on table below per Exchange Act Rules&nbsp;14a-6(i)(1) and 0-11.</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2>(1)</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="90%"><FONT SIZE=2>Title of each class of securities to which transaction applies:<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common Stock, par value $1.00 per share</FONT><HR NOSHADE></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2>(2)</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="90%"><FONT SIZE=2>Aggregate number of securities to which transaction applies:<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2,323,944</FONT><HR NOSHADE></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2>(3)</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="90%"><FONT SIZE=2>Per unit price or other underlying value of transaction computed pursuant to Exchange Act Rule&nbsp;0-11:<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$15.17</FONT><HR NOSHADE></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2>(4)</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="90%"><FONT SIZE=2>Proposed maximum aggregate value of transaction:<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$35,254,231</FONT><HR NOSHADE></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2>(5)</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="90%"><FONT SIZE=2>Total Fee Paid:<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$2,852</FONT><HR NOSHADE></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="2%"><FONT SIZE=2><BR>
*</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD COLSPAN=3><FONT SIZE=2><BR>
Includes shares of the Company's common stock to be converted to cash. Excludes shares held by the Buyer Group (as defined herein), which shall remain outstanding after the transaction.</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="2%"><FONT SIZE=2><BR>
<FONT FACE="WINGDINGS">&#111;</FONT></FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD COLSPAN=3><FONT SIZE=2><BR>
Fee paid previously with preliminary materials.</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="2%"><FONT SIZE=2><BR>
<FONT FACE="WINGDINGS">&#111;</FONT></FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD COLSPAN=3><FONT SIZE=2><BR>
Check box if any part of the fee is offset as provided by Exchange Act Rule&nbsp;0-11(a)(2) and identify the filing for which the offsetting fee was paid previously. Identify the previous filing by registration statement number, or the Form or
Schedule and the date of its filing.</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="2%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2><BR>
(1)</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="90%"><FONT SIZE=2><BR>
Amount Previous Paid:<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><HR NOSHADE></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2>2)</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="90%"><FONT SIZE=2>Form, Schedule or Registration Statement No.<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><HR NOSHADE></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2>(3)</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="90%"><FONT SIZE=2>Filing Party:<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><HR NOSHADE></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2>(4)</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="90%"><FONT SIZE=2>Date Filed:<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><HR NOSHADE></TD>
</TR>
</TABLE>
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<HR NOSHADE>
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<P ALIGN="CENTER"><FONT SIZE=2><B>Baltek Corporation<BR>
10 Fairway Court<BR>
P.O.&nbsp;Box 195<BR>
Northvale, New Jersey 07647  </B></FONT></P>

<P><FONT SIZE=2>Dear Stockholder: </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
cordially invite you to attend a special meeting of stockholders of Baltek Corporation, or Baltek, to be held
on&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;, 2003 at 10:00&nbsp;a.m., local time, at the offices
of the company located at 108 Fairway Court, Northvale, New Jersey 07647. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At
the special meeting, we will ask you to consider and vote on a proposal to adopt the Agreement and Plan of Merger, or merger agreement, we entered into on March&nbsp;5, 2003 with
Alcan&nbsp;Inc., or Alcan, and its wholly owned subsidiary, Alcan Balcorp,&nbsp;Inc., or Alcan Balcorp, providing for the acquisition of Baltek by Alcan. Pursuant to the merger, if approved and
completed, you will receive $15.17 in cash, without interest and less applicable withholding taxes, for each share of our common stock that you own. After the merger, Baltek will become a wholly-owned
subsidiary of Alcan. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
merger consideration represents approximately a 77% premium over the closing price of the twenty day average trading price of our common stock prior to the date of the signing of the
merger agreement and a 74.4% premium over the closing price of our common stock on March&nbsp;4, 2003, the day before the merger agreement was signed. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A
special independent committee, or the Committee, of our Board of Directors and our entire Board of Directors, or the Board, carefully considered and evaluated the merger. In connection
with the Committee's and the Board's evaluation of the merger, the Committee and the Board received an opinion from Phoenix Securities Corp., a subsidiary of Laidlaw Global Corp., stating that, as of
the date of such opinion and subject to the assumptions and limitations set forth in the opinion, the merger consideration to be received by our stockholders in the proposed merger was fair, from a
financial point of view. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;THE
SPECIAL COMMITTEE OF OUR BOARD HAS UNANIMOUSLY RECOMMENDED TO THE BOARD, AND OUR BOARD HAS UNANIMOUSLY DETERMINED, THAT THE MERGER AND THE MERGER AGREEMENT IS ADVISABLE FAIR, AND IN
THE BEST INTERESTS OF BALTEK AND OUR STOCKHOLDERS. OUR BOARD ALSO HAS UNANIMOUSLY APPROVED THE MERGER AGREEMENT AND THE TRANSACTIONS IT CONTEMPLATES AND UNANIMOUSLY RECOMMENDS THAT YOU VOTE
"</FONT><FONT SIZE=2><B>FOR"</B></FONT><FONT SIZE=2> THE ADOPTION OF THE MERGER AGREEMENT AND THE TRANSACTIONS CONTEMPLATED THEREBY. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
cannot complete the merger unless the merger agreement is adopted by the affirmative vote of holders representing a majority of votes of the outstanding shares of our common stock.
Whether or not you plan to be present at the special meeting, please complete, sign, date and return the enclosed proxy card as described in the proxy statement to ensure that your shares are
represented at the special meeting. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;YOUR
VOTE IS VERY IMPORTANT. IF YOU DO NOT SEND IN YOUR PROXY OR DO NOT INSTRUCT YOUR BROKER TO VOTE YOUR SHARES OR IF YOU ABSTAIN FROM VOTING, IT WILL HAVE THE SAME EFFECT AS A VOTE
AGAINST ADOPTION OF THE MERGER AGREEMENT. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
enclosed proxy statement provides you with detailed information about the merger and related matters. We urge you to read the proxy statement carefully, including the annexes. If the
merger agreement is adopted and the merger is completed, you will be sent written instructions for exchanging your Baltek common stock certificates for a cash payment. If you hold Baltek stock
certificates, please do not send your certificates until you receive these instructions. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
behalf of our Board of Directors, I thank you in advance for your participation in this matter. </FONT></P>

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<TD WIDTH="47%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="53%"><FONT SIZE=2>Yours truly,</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="47%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="53%"><BR><HR NOSHADE><FONT SIZE=2> Jacques Kohn<BR>
President and Chief Executive Officer</FONT></TD>
</TR>
</TABLE>
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<P><FONT SIZE=2>THIS PROXY STATEMENT IS DATED <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> AND IS FIRST BEING MAILED TO STOCKHOLDERS ON OR
ABOUT
<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>. </FONT></P>

<HR NOSHADE>
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<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="be4672_baltek_corporation_10_fairway___bal02419"> </A>
<A NAME="toc_be4672_1"> </A>
<BR></FONT><FONT SIZE=2><B>BALTEK CORPORATION<BR>  10 FAIRWAY COURT<BR>  P.O. BOX 195<BR>  NORTHVALE, NEW JERSEY 07647    <BR>    </B></FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="be4672_notice_of_special_meeting_of_s__not02371"> </A>
<A NAME="toc_be4672_2"> </A>
<BR></FONT><FONT SIZE=2><B>NOTICE OF SPECIAL MEETING OF STOCKHOLDERS<BR>  TO BE HELD ON JUNE&nbsp;&nbsp;&nbsp;&nbsp;, 2003    <BR>    </B></FONT></P>


<P><FONT SIZE=2>TO
THE STOCKHOLDERS OF BALTEK CORPORATION: </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NOTICE
IS HEREBY GIVEN that a Special Meeting of Stockholders of Baltek Corporation, a Delaware corporation ("Baltek"), will be held on June&nbsp;&nbsp;&nbsp;&nbsp;, 2003 at 10:00&nbsp;a.m.,
local time, at the offices of Baltek, 108 Fairway Court, Northvale, New Jersey 07647 for the following purposes: </FONT></P>

<UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;&nbsp;&nbsp;To
consider and vote on a proposal to adopt the Agreement and Plan of Merger, dated as of March&nbsp;5, 2003 (the "Merger Agreement"), by and among Alcan&nbsp;Inc.,
a corporation formed under the laws of Canada ("Alcan"), Alcan Balcorp,&nbsp;Inc., a Delaware corporation and a wholly-owned subsidiary of Alcan ("Alcan Balcorp"), and Baltek, and the transactions
it contemplates, including the merger of Alcan Balcorp into Baltek (the "Merger"); and </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;&nbsp;&nbsp;To
vote on any adjournment or postponement of the special meeting, if necessary. </FONT></P>

<P><FONT SIZE=2>The
board of directors of Baltek (the "Board") has fixed the close of business on&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;, 2003 as the record date (the "Record Date") for the special meeting and any
adjournment or postponement thereof. Only holders of record of shares of Baltek's common stock at the close of business on the Record Date are entitled to notice of, and to vote at, the special
meeting or any adjournment or postponement thereof. As of the Record Date, there were&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares outstanding, held of record by approximately&nbsp;&nbsp;&nbsp;&nbsp;holders.
</FONT></P>

</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A
complete list of stockholders entitled to vote at the meeting will be available for examination at 108 Fairway Court, Northvale, NJ 07647, for ten days prior to the meeting. This
Notice of Special Meeting of Shareholders is first being mailed to stockholders entitled to notice of, and to vote at, the special meeting on or
about&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;, 2003. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Approval
of the Merger Agreement and the Merger requires the affirmative vote of the holders of a majority of the outstanding shares of common stock entitled to vote at the special
meeting. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Holders
of Baltek's common stock are entitled to appraisal rights under the Delaware General Corporation Law in connection with the Merger. See "The Merger&#151;Rights of
Dissenting Stockholders" on page 24 of this proxy statement. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Merger Agreement and the Merger are explained in the accompanying proxy statement, which you are urged to read carefully. A copy of the Merger Agreement is attached as Annex A to
this proxy statement. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;After
careful consideration, the Board has determined that the Merger and the Merger Agreement are advisable and fair to, and in the best interests of, Baltek and its stockholders.
Accordingly, based on the unanimous recommendation of a special independent committee of the Board (the "Special Committee"), the Board has unanimously approved the Merger Agreement and the
transactions it contemplates, including the Merger, and unanimously recommends that you vote "FOR" adoption of the Merger Agreement and the transactions contemplated thereby. </FONT></P>

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&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD COLSPAN=2><FONT SIZE=2><BR>
By Order of the Board of Directors</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="39%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD COLSPAN=2><BR><HR NOSHADE><FONT SIZE=2> JACQUES KOHN<BR>
President and Chief Executive Officer</FONT></TD>
</TR>
</TABLE>
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<P><FONT SIZE=2>Northvale,
New Jersey </FONT></P>

<P><FONT SIZE=2>May&nbsp;&nbsp;&nbsp;&nbsp;,
2003 </FONT></P>

<HR NOSHADE>
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<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;YOUR
VOTE IS IMPORTANT. THE AFFIRMATIVE VOTE OF THE HOLDERS OF A MAJORITY OF THE OUTSTANDING SHARES OF BALTEK'S COMMON STOCK IS REQUIRED TO ADOPT THE MERGER AGREEMENT. ALL STOCKHOLDERS
ARE CORDIALLY INVITED TO ATTEND THE MEETING IN PERSON. WHETHER OR NOT YOU EXPECT TO ATTEND THE MEETING, PLEASE COMPLETE, DATE, SIGN AND RETURN THE ENCLOSED PROXY AS PROMPTLY AS POSSIBLE IN ORDER TO
ENSURE YOUR REPRESENTATION AT THE MEETING. A RETURN ENVELOPE (WHICH IS POSTAGE PREPAID IF MAILED IN THE UNITED STATES) IS ENCLOSED FOR THAT PURPOSE. EVEN IF YOU HAVE GIVEN YOUR PROXY, YOU MAY STILL
VOTE IN PERSON IF YOU ATTEND THE MEETING. PLEASE NOTE, HOWEVER, THAT IF YOUR SHARES ARE HELD OF RECORD BY A BROKER, BANK OR OTHER NOMINEE AND YOU WISH TO VOTE AT THE MEETING, YOU MUST OBTAIN FROM THE
RECORD HOLDER A PROXY ISSUED IN YOUR NAME. </FONT></P>

<HR NOSHADE>
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<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="bg4672_table_of_contents"> </A>
<A NAME="toc_bg4672_1"> </A>
<BR></FONT><FONT SIZE=2><B>TABLE OF CONTENTS    <BR>    </B></FONT></P>

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<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD COLSPAN=2><FONT SIZE=2>Summary Term Sheet</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2>1</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD COLSPAN=2><FONT SIZE=2>Questions and Answers about the Merger</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2>8</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD COLSPAN=2><FONT SIZE=2>Definitions of Key Terms</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2>11</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD COLSPAN=2><FONT SIZE=2>Special Note Regarding Forward-Looking Statements</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2>11</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD COLSPAN=2><FONT SIZE=2>The Special Meeting</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2>12</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="91%"><FONT SIZE=2>Date, Time and Place</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2>12</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="91%"><FONT SIZE=2>Purpose of Special Meeting</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2>12</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="91%"><FONT SIZE=2>Record Date; Stock Entitled to Vote; Quorum</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2>12</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="91%"><FONT SIZE=2>Vote Required</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2>12</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="91%"><FONT SIZE=2>Voting by Baltek's Directors, Executive Officers and Certain Stockholders</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2>12</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="91%"><FONT SIZE=2>Voting of Proxies</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2>12</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="91%"><FONT SIZE=2>Revocability of Proxies</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2>13</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="91%"><FONT SIZE=2>Solicitation of Proxies</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2>14</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD COLSPAN=2><FONT SIZE=2>The Companies</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2>14</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="91%"><FONT SIZE=2>Baltek Corporation</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2>14</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="91%"><FONT SIZE=2>Alcan Inc.</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2>14</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="91%"><FONT SIZE=2>Alcan Balcorp, Inc.</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2>14</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD COLSPAN=2><FONT SIZE=2>The Merger</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2>15</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="91%"><FONT SIZE=2>Background to the Merger</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2>15</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="91%"><FONT SIZE=2>Reasons for the Merger and the Board's Recommendation</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2>17</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="91%"><FONT SIZE=2>Opinion of Phoenix Securities Corp.</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2>19</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="91%"><FONT SIZE=2>Interests of Baltek's Directors and Executive Officers in the Merger</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2>23</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="91%"><FONT SIZE=2>Rights of Dissenting Stockholders</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2>24</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="91%"><FONT SIZE=2>Accounting Treatment</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2>26</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="91%"><FONT SIZE=2>Form of the Merger</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2>27</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="91%"><FONT SIZE=2>Merger Consideration</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2>27</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="91%"><FONT SIZE=2>Conversion of Shares; Procedures for Exchange of Certificates</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2>27</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="91%"><FONT SIZE=2>Effective Time of the Merger</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2>27</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="91%"><FONT SIZE=2>Delisting and Deregistration of Baltek's Common Stock</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2>27</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="91%"><FONT SIZE=2>Certain Material United States Federal Income Tax Consequences of the Merger</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2>28</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="91%"><FONT SIZE=2>Regulatory Matters</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2>29</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD COLSPAN=2><FONT SIZE=2>The Merger Agreement</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2>30</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="91%"><FONT SIZE=2>Representations and Warranties</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2>30</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="91%"><FONT SIZE=2>Conditions to Completion of the Merger</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2>31</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="91%"><FONT SIZE=2>Conduct of Business by Baltek Pending the Merger</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2>32</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="91%"><FONT SIZE=2>Limitation on Considering Other Acquisition Proposals</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2>33</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="91%"><FONT SIZE=2>Termination</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2>34</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="91%"><FONT SIZE=2>Expenses and Termination Fees</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2>35</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="91%"><FONT SIZE=2>Amendment and Waiver of the Merger Agreement</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2>35</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="91%"><FONT SIZE=2>Indemnification</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2>35</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD COLSPAN=2><FONT SIZE=2>The Voting Agreement</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2>36</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="91%"><FONT SIZE=2>Voting</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2>36</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="91%"><FONT SIZE=2>Restrictions on Transfer and Other Voting Arrangements</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2>36</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="91%"><FONT SIZE=2>No Solicitation</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2>36</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="2%">&nbsp;</TD>
<TD WIDTH="91%"><FONT SIZE=2>Termination</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2>36</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD COLSPAN=2><FONT SIZE=2>Security Ownership of Certain Beneficial Owners and Management</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2>37</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD COLSPAN=2><FONT SIZE=2>Stockholder Proposals</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2>38</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD COLSPAN=2><FONT SIZE=2>Where You Can Find More Information</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2>39</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD COLSPAN=2><FONT SIZE=2>Other Matters</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2>39</FONT></TD>
</TR>
</TABLE>
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<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="da4672_summary_term_sheet"> </A>
<A NAME="toc_da4672_1"> </A>
<BR></FONT><FONT SIZE=2><B>SUMMARY TERM SHEET    <BR>    </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This summary highlights selected information from this proxy statement but may not contain all of the information that is important to you. To understand the
Merger fully and for a more complete description of the legal terms of the Merger, you should read carefully this entire proxy statement and the documents we refer to herein. See "Where You Can Find
More Information" on page 39 of this proxy statement. The Merger Agreement is attached as </FONT><FONT SIZE=2><I>Annex A</I></FONT><FONT SIZE=2> to this proxy statement. We encourage you to read the
Merger Agreement, as it is the legal document that governs the Merger. Certain members of, and related entities to, the Kohn family and Alcan have executed a voting agreement (the "Voting Agreement")
in connection with the Merger, which Voting Agreement is attached as </FONT><FONT SIZE=2><I>Annex B</I></FONT><FONT SIZE=2> to this proxy statement. We have included page references in parentheses to
direct you to a more complete description in the proxy statement of the topics presented in this summary. Please see "Definitions of Key Terms" on page 11 of this proxy statement for the definition of
a few key terms used throughout this proxy statement. </FONT></P>

<P><FONT SIZE=2><B>THE COMPANIES (PAGE 14)  </B></FONT></P>

<P><FONT SIZE=2>BALTEK
CORPORATION<BR>
10 Fairway Court<BR>
P.O.&nbsp;Box 195<BR>
Northvale, New Jersey 07647<BR>
Telephone: (201)&nbsp;767-1400 </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Baltek
Corporation is a multinational manufacturing and sales company supplying core materials, principally balsa wood and balsa wood products, linear and cross-linked PVC foam and
non-woven polyester mat, to various composite industries. The foam and mat products, together with Baltek's balsa products, position the company as a complete supplier to the composite
structural core market. The products manufactured by Baltek's customers include fiberglass boats, windmill blades, aircraft cargo pallets, aircraft flooring, fiberglass storage and processing tanks,
electrical generating equipment and fiberglass tub and shower bottoms. Baltek also supplies balsa lumber to the model business around the globe. Since the mid-1990's, Baltek has been the
exclusive North American sales and marketing representative for the foam structural core products produced by Alcan Airex AG, Switzerland, a subsidiary of Alcan. Baltek has divested its seafood
distribution and shrimp farming operations. </FONT></P>

<P><FONT SIZE=2>ALCAN&nbsp;INC.<BR>
1188 Sherbrooke Street West,<BR>
Montreal, Quebec, Canada H3A&nbsp;3G2<BR>
Telephone: (514)&nbsp;848-8000 </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Alcan
is a global leader in aluminum and packaging with annual revenues of US$12.5&nbsp;billion in 2002 and operations in 41 countries. Its activities include bauxite mining, alumina
refining, specialty chemicals, power generation, aluminum smelting, manufacturing, recycling, packaging and related research and development. Alcan's Engineered Products group has 10 plants worldwide
with assets of US$1.4&nbsp;billion and annual revenues of US$1.6&nbsp;billion in 2002. It includes a rapidly growing composites business with operations in North and South America, Europe and
Asia, supplying the architecture, display and transportation markets. </FONT></P>

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<P><FONT SIZE=2>ALCAN
BALCORP,&nbsp;INC.<BR>
c/o Alcan Aluminum Corporation<BR>
6060 Parkland Blvd.<BR>
Cleveland, Ohio 44124-4185<BR>
Telephone: (440)&nbsp;423-6600 </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Alcan
Balcorp,&nbsp;Inc., is a Delaware corporation and a wholly-owned subsidiary of Alcan. Alcan Balcorp was organized solely for the purpose of entering into the Merger Agreement
with Baltek and completing the Merger. It has not conducted any business operations. If the Merger is consummated, Alcan Balcorp will cease to exist following the merger of it with and into Baltek. </FONT></P>

<P><FONT SIZE=2><B>THE MERGER AGREEMENT (PAGE 30)  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Baltek, Alcan and Alcan Balcorp have entered into the Merger Agreement that provides for the acquisition of Baltek by Alcan, to be affected by the Merger. As a
result of the Merger, Baltek will cease to be an independent, publicly-traded company, and will instead become a wholly-owned subsidiary of Alcan. The Merger will be completed when all of the
conditions to completion of the
Merger are satisfied or waived, including, without limitation, approval of the Merger and adoption of the Merger Agreement by Baltek's stockholders. The Merger Agreement may be terminated, and the
Merger not completed, under certain circumstances that are set forth in the Merger Agreement and described in this proxy statement. </FONT></P>

<P><FONT SIZE=2><B>THE MERGER CONSIDERATION (PAGE 27)  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Upon completion of the Merger, each outstanding share of Baltek's common stock, other than shares held by stockholders exercising appraisal or dissenters' rights,
will be converted into the right to receive $15.17 per share of Baltek common stock in cash (without interest and less applicable withholding taxes). The aggregate consideration for the Merger is
$35,254,231. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;After
the Merger is completed, each stockholder will have the right to receive his, her or its ratable share of the aggregate consideration for the Merger, but will no longer have any
rights as a Baltek stockholder. Baltek's stockholders will receive their ratable share of the aggregate consideration for the Merger after exchanging their Baltek stock certificates in accordance with
the instructions contained in the letter of transmittal to be sent to Baltek's stockholders shortly after completion of the Merger. </FONT></P>


<P><FONT SIZE=2><B>REASONS FOR THE MERGER (PAGE 17)  </B></FONT></P>

<UL>

<P><FONT SIZE=2>The
Board approved the Merger based on a number of factors, including the following: </FONT></P>

<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>the
value of the consideration to be received by Baltek's stockholders in the Merger pursuant to the Merger Agreement;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>the
consideration for the Merger relative to the historical market prices of Baltek's common stock, and in particular the fact that the anticipated $15.17 per share
represents approximately a 77% premium over the closing price of the twenty day average trading price of Baltek's common stock prior to the date of the signing of the Merger Agreement, and a 74.4%
premium over the closing price of Baltek's common stock on the trading day prior to the announcement of the Merger;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>the
consideration for the Merger is all cash, which provides certainty of value to Baltek's stockholders (compared to a transaction in which they would receive stock or
other non-cash consideration), especially in light of the volatility of the stock market; </FONT></DD></DL>
</UL>
<P ALIGN="CENTER"><FONT SIZE=2>2</FONT></P>

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<UL>
<UL>
</UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>the
financial stability of Alcan and the fact that the Merger is not subject to a financing condition;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>the
financial analysis and presentation by Phoenix Securities Corp. ("Phoenix") and the opinion of Phoenix that, as of the date of the opinion, and based on procedures
followed, assumptions made, the matters considered and the limitations on the review undertaken described in the opinion (which opinion is attached as </FONT><FONT SIZE=2><I>Annex
C</I></FONT><FONT SIZE=2> to this proxy statement), the consideration payable to Baltek's stockholders in the Merger was fair to such stockholders from a financial point of view (please see "Opinion
of Phoenix Securities Corp." on page 19 of this proxy statement for more information on Phoenix's fairness opinion, including the underlying assumptions and methodologies, matters considered and
limitations on the review undertaken);
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>the
Merger Agreement enables Baltek to participate in discussions and negotiations with, furnish non-public information and afford access to Baltek's books and
records to, any third party that submits an unsolicited competing bid to acquire Baltek (subject to the limitations described under "The Merger Agreement&#151;Limitation on Considering Other
Acquisition Proposals" on page 33 of this proxy statement); and
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>the
Merger Agreement permits Baltek to terminate the Merger Agreement so that it may enter into a definitive agreement with respect to any competing proposal the Board
believes to be superior to the proposed Merger with Alcan, subject to the requirements of the Merger Agreement and the payment by Baltek of a termination fee of $1,200,000 or approximately 3.4% of the
aggregate consideration for the Merger. </FONT></DD></DL>
</UL>

<P><FONT SIZE=2><B>BOARD RECOMMENDATION (PAGE 17)  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;After careful consideration, the Board has determined that the Merger Agreement and the Merger are advisable and fair to, and in the best interests of, Baltek and
its stockholders. Accordingly, the Board
has unanimously approved the Merger Agreement and the transactions it contemplates, including the Merger, and unanimously recommends that stockholders vote "FOR" adoption of the Merger Agreement and
approval of the transactions it contemplates, including the Merger. </FONT></P>

<P><FONT SIZE=2><B>OPINION OF PHOENIX SECURITIES CORP. (PAGE 19)  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In deciding to approve the Merger, the Board considered, among other things, an opinion from Phoenix, Baltek's financial advisor, as to the fairness of the
consideration for the Merger from a financial point of view. Baltek urges each stockholder to read it carefully to understand the procedures followed, assumptions made, matters considered and
limitations on the review undertaken by Phoenix. This opinion is directed to the Board and relates only to the fairness of the consideration for the Merger from a financial point of view as of the
date of the opinion. The opinion does not address any other aspect of the proposed transaction and is not a recommendation to any stockholder with respect to any matter relating to the Merger. </FONT></P>

<P><FONT SIZE=2><B>THE SPECIAL MEETING OF BALTEK'S STOCKHOLDERS (PAGE 12)  </B></FONT></P>

<P><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Time, Date and Place.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;A special meeting of the stockholders of Baltek, called for the purpose of considering the Merger, will
be held on June&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;, 2003 at 10:00&nbsp;a.m., local time, at the offices of Baltek Corporation located at 108 Fairway Court, Northvale, New Jersey 07647. </FONT></P>


<P><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Record Date and Voting Power.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;A stockholder is entitled to vote at the special meeting if he, she or it owned shares of
Baltek's common stock at the close of business on the Record Date. Each stockholder will have one vote at the special meeting for each share of Baltek's common stock he, she or it owned at the close
of business on the Record Date. There were&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares of Baltek's common stock outstanding as of the Record
Date and entitled to be voted at the special meeting. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>3</FONT></P>

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<P><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Required Vote.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;The adoption of the Merger Agreement requires the affirmative vote of the holders of a majority of the shares
of Baltek's common stock outstanding at the close of business on the Record Date. </FONT></P>

<P><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Share Ownership of Certain Members of the Kohn Family.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Jacques Kohn, Jean J. Kohn, The Bernard Kohn Revocable Living Trust
and The Bernard Kohn Irrevocable Descendants Trust, who together own approximately 46% of the shares entitled to vote at the special meeting, have agreed with Alcan to vote their shares in favor of
adoption of the Merger Agreement and against any proposal or action that could interfere with or impede the transaction. </FONT></P>

<P><FONT SIZE=2><B>INTERESTS OF BALTEK'S DIRECTORS AND EXECUTIVE OFFICERS IN THE<BR>
MERGER (PAGE 23)  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;When considering the recommendation by the Board, each stockholder should be aware that a number of Baltek's officers and directors have interests in the Merger
that may be different from the interests of other Baltek stockholders. Consulting agreements with Jacques Kohn and Margot W. Kohn will become effective if the Merger is consummated. Also, certain
indemnification arrangements for current and former directors and officers of Baltek will be continued and certain of Baltek's officers and senior management may also be entitled to bonus payments or
payments related to their termination of employment and non-competition agreements entered into with Baltek in the event that the Merger is consummated. </FONT></P>

<P><FONT SIZE=2><B>CONDITIONS TO THE COMPLETION OF THE MERGER (PAGE 31)  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each of Baltek, Alcan and Alcan Balcorp is obligated to complete the Merger only if the following conditions are met or waived by such party at or prior to the
effective time of the Merger: </FONT></P>

<UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>the
Merger and the Merger Agreement are approved by and adopted by the requisite vote of Baltek's stockholders;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>all
governmental approvals and consents necessary to effect the transactions are obtained, unless the failure to obtain the approvals and consents would not have a Company
Material Adverse Effect; and
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>no
court or government entity having jurisdiction over any of the parties has issued an order that prohibits the consummation of the Merger. </FONT></DD></DL>
</UL>
<BR>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Alcan
and Alcan Balcorp are obligated to complete the Merger only if certain additional conditions are met by Baltek or waived by Alcan or Alcan Balcorp at or prior to the effective time
of the Merger. These include that: </FONT></P>

<UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>the
representations and warranties of Baltek set forth in the Merger Agreement are true and correct when made and will be true and correct on and as of the Closing Date, as
if made on and as of such date, except where a representation or warranty speaks as of an earlier date, and Alcan has received a certificate signed on behalf of Baltek by the President and Chief
Executive Officer of Baltek to such effect;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>Alcan
has sufficient access to the business of Baltek and its subsidiaries to permit it to conduct a due diligence investigation to confirm to its satisfaction the
representations and warranties of Baltek made in the Merger Agreement;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>holders
of no more than 5% of Baltek's outstanding shares have perfected dissenters' rights under Delaware law; </FONT></DD></DL>
</UL>
<P ALIGN="CENTER"><FONT SIZE=2>4</FONT></P>

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</UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>all
of the directors of Baltek have submitted their resignations and Baltek has performed in all material respects each of its obligations contained in the Merger Agreement
required to be performed on or prior to the Closing Date;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>Baltek
has divested all of its interests in its subsidiaries conducting its shrimp business;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>each
of Jacques Kohn, Jean J. Kohn, Margot W. Kohn, Henri-Armand Kohn and Isabelle Kohn has executed and delivered termination of employment and non-competition
agreements on terms satisfactory to Alcan;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>each
of Jacques Kohn and Margot W. Kohn has executed and delivered consulting agreements on terms satisfactory to Alcan;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>the
Voting Agreement between Alcan and Jacques Kohn, Jean J. Kohn, The Bernard Kohn Revocable Living Trust and The Bernard Kohn Irrevocable Descendants Trust (collectively,
the "Voting Agreement Stockholders") remains in full force and effect; and
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>Baltek
has obtained certain written consents pursuant to certain material contracts with third parties on terms satisfactory to Alcan. </FONT></DD></DL>
</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Baltek
is obligated to complete the Merger only if the following additional conditions are met by Alcan Balcorp and Alcan or waived by Baltek at or prior to the effective time of the
Merger: </FONT></P>

<UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>the
representations and warranties of Alcan and Alcan Balcorp set forth in the Merger Agreement are true and correct when made and will be true and correct in all material
respects on and as of the Closing Date as if made on and as of such date, except where a representation or warranty expressly speaks as of an earlier date, and Baltek has received certificates signed
on behalf of Alcan by an officer of Alcan and by Alcan Balcorp by the chief executive officer of Alcan Balcorp to such effect; and
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>Alcan
and Alcan Balcorp have performed in all material respects all material obligations contained in the Merger Agreement required to be performed on or prior to the
Closing Date. </FONT></DD></DL>
</UL>

<P><FONT SIZE=2><B>TERMINATION OF MERGER AGREEMENT (PAGE 34)  </B></FONT></P>

<UL>

<P><FONT SIZE=2>The
Merger Agreement may be terminated: </FONT></P>

<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>by
mutual written consent of both Baltek and Alcan;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>by
either Baltek or Alcan if (i)&nbsp;the Merger is not consummated by August&nbsp;30, 2003; provided that the right to terminate shall not be available to any party who
breached in any material respect its material obligations under the Merger Agreement that contributed to the failure of the Merger to be consummated; (ii)&nbsp;the Merger and the Merger Agreement
are not approved by and adopted by the requisite vote of Baltek's stockholders; or (iii)&nbsp;a court or government entity having jurisdiction over the parties has issued a final order prohibiting
the consummation of the Merger;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>by
Baltek, if Alcan or Alcan Balcorp has materially breached any representation, warranty, covenant or agreement in the Merger Agreement which is not curable or cured within
thirty days after the giving of notice by Baltek; provided that such breach results in (i)&nbsp;the failure of a representation or warranty of Alcan or Alcan Balcorp to be true and correct as of the
Closing Date or (ii)&nbsp;the failure of Alcan or Alcan Balcorp to perform in all material respects all material obligations required to be performed by them under the Merger Agreement on or prior
to the Closing Date;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>by
Baltek if (i)&nbsp;its Board authorizes it to enter into a binding written agreement concerning a transaction determined to be a Superior Proposal (as defined on page
11 of this proxy </FONT></DD></DL>
</UL>
<P ALIGN="CENTER"><FONT SIZE=2>5</FONT></P>

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<P><FONT SIZE=2>statement);
provided, however, Baltek may not terminate the Merger Agreement pursuant to this provision unless (i)&nbsp;it has delivered to Alcan in a written notice of its intent to enter into an
agreement to effect such a transaction, (ii)&nbsp;Alcan does not make an offer within three business days following receipt (not including the day of receipt) of such written notice by Baltek that
the Board in good faith determines, after consultation with its financial advisors, is at least as favorable, from a financial point of view, to Baltek's stockholders as the Superior Proposal and
(iii)&nbsp;upon termination Baltek pays to Alcan the required termination fee; </FONT></P>

</UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>by
Alcan, if the Board withdraws or adversely modifies its approval or recommendation of the Merger Agreement or after an Acquisition Proposal (as defined on page 11 of this
proxy statement) has been made and the Board fails to reconfirm its recommendation of the Merger Agreement within fifteen business days after requested in writing by Alcan to do so; or
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>by
Alcan, if Baltek has materially breached any representation, warranty, covenant or agreement in the Merger Agreement which is not curable or cured within thirty days
after the giving of
notice to Alcan; provided that such breach results in (i)&nbsp;the failure of a representation or warranty of Baltek to be true and correct as of the Closing Date or (ii)&nbsp;the failure of
Baltek to perform in all material respects all material obligations required to be performed by it under the Merger Agreement on or prior to the Closing Date. </FONT></DD></DL>
</UL>

<P><FONT SIZE=2><B>LIMITATION ON CONSIDERING OTHER ACQUISITION PROPOSALS (PAGE 33)  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Baltek has agreed that neither it nor any of its subsidiaries nor any of their respective officers or directors will, and that it will direct and use its best
efforts to cause their respective employees, agents and representatives not to (i)&nbsp;solicit, initiate, encourage or otherwise facilitate any Acquisition Proposal, or (ii)&nbsp;participate in
any negotiations concerning, or provide any confidential information or data to, or have any discussions with, any person relating to an Acquisition Proposal, or otherwise facilitate any effort to
make or implement an Acquisition Proposal. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Nevertheless,
the Merger Agreement does not prevent Baltek, its directors, officers, agents or other representatives from (i)&nbsp;providing information subject to a confidentiality
agreement in response to an unsolicited bona fide written Acquisition Proposal and engaging in any negotiations or discussions in connection with such Acquisition Proposal or (ii)&nbsp;recommending
such an Acquisition Proposal to Baltek's stockholders if the Board determines in good faith (after consultation with outside legal counsel) that its failure to take such action would be inconsistent
with the fiduciary duties of the directors and the Board determines in good faith (after consultation with its financial advisors) that such Acquisition Proposal is a Superior Proposal. </FONT></P>

<P><FONT SIZE=2><B>EXPENSES AND TERMINATION FEES (PAGE 35)  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Merger Agreement provides that, regardless of whether the Merger is consummated, all costs, fees and expenses incurred by the parties in connection with the
Merger shall be borne by the party incurring such costs, fees and expenses. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;However,
under certain circumstances relating to the termination of the Merger Agreement, Baltek may be required to pay Alcan a termination fee of $1.2&nbsp;million. The termination
fee would be due if: </FONT></P>

<UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>Alcan
terminates the Merger Agreement due to Baltek's inability to obtain the required approval of the stockholders of Baltek for the consummation of the Merger;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>Baltek
terminates the Merger Agreement because it has received a Superior Proposal and intends to enter into a binding agreement with the party making the Superior Proposal
and Alcan does not make, within three business days of receipt (not counting the day of receipt) of Baltek's written notification of its intention to enter into a binding agreement for a Superior
Proposal, an offer that the Board determines, in good faith after consultation with its financial </FONT></DD></DL>
</UL>
<P ALIGN="CENTER"><FONT SIZE=2>6</FONT></P>

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<P><FONT SIZE=2>advisors,
is at least as favorable, from a financial point of view, to Baltek's stockholders as the Superior Proposal; or </FONT></P>

</UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>Alcan
terminates the Merger Agreement because the Board has withdrawn or adversely modified its approval or recommendation of the Merger Agreement or, after an Acquisition
Proposal has been made, failed to reconfirm its recommendation of the Merger Agreement within fifteen business days after a written request by Alcan to do so. </FONT></DD></DL>
</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Furthermore,
Baltek, as the surviving corporation, will pay all charges and expenses related to the exchange of, and payment for, shares pursuant to the Merger Agreement, including,
without limitation, those charges and expenses of the paying agent, and any transfer taxes, conveyance taxes and sales taxes, if any, payable in connection with the consummation of the Merger. </FONT></P>

<P><FONT SIZE=2><B>ACCOUNTING TREATMENT (PAGE 26)  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Merger will be accounted for as a "purchase transaction" for financial accounting purposes. </FONT></P>


<P><FONT SIZE=2><B>REGULATORY MATTERS (PAGE 29)  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Although all business combination transactions are subject to U.S. antitrust laws and also may be subject to international antitrust laws, filings with the
Department of Justice and the Federal Trade Commission prior to closing of the Merger are not required. However, the Department of Justice or the Federal Trade Commission, as well as a state or
private person, may challenge the Merger at any time before or after its completion. </FONT></P>

<P><FONT SIZE=2><B>RIGHTS OF DISSENTING STOCKHOLDERS (PAGE 24)  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Baltek's stockholders have the right under Delaware law to dissent from the approval of the Merger and to receive payment in cash for the fair value of their
shares of Baltek's common stock. The fair value of shares of Baltek's common stock as determined in accordance with Delaware law may be more or less than the per-share amount of the
consideration for the Merger to be paid to non-dissenting stockholders of Baltek in the Merger. To preserve their rights, stockholders who wish to exercise appraisal rights pursuant to
Delaware law must not vote in favor of the adoption of the Merger Agreement and must follow specific procedures. Dissenting stockholders of Baltek must precisely follow these specific procedures or
their rights may be lost. These procedures are described in this proxy statement. The provisions of Delaware law that grant appraisal rights and govern such procedures are attached as </FONT> <FONT SIZE=2><I>Annex D</I></FONT><FONT SIZE=2> to this
proxy statement. We encourage all of Baltek's stockholders to read these provisions carefully and in their entirety. </FONT></P>


<P><FONT SIZE=2><B>VOTING AGREEMENT (PAGE 36)  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Simultaneously with the execution and delivery of the Merger Agreement, Alcan entered into the Voting Agreement with the Voting Agreement Stockholders. On the
Record Date, the Voting Agreement Stockholders were the holders of record of approximately 46%, collectively, of Baltek's outstanding common stock. The Voting Agreement is attached as </FONT> <FONT SIZE=2><I>Annex B</I></FONT><FONT SIZE=2> to this
proxy statement. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>7</FONT></P>

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<BR></FONT><FONT SIZE=2><B>QUESTIONS AND ANSWERS ABOUT THE MERGER    <BR>    </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following questions and answers are provided for your convenience, and briefly address some commonly asked questions about the proposed transaction and the
special meeting of Baltek's stockholders. You should carefully read this entire proxy statement, including each of the annexes. For the definition of a few key terms used throughout this proxy
statement please see "Definitions of Key Terms" on page 11 of this proxy statement. </FONT></P>

<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2><B>Q:</B></FONT></DT><DD><FONT SIZE=2>WHEN AND WHERE WILL THE SPECIAL MEETING OF BALTEK'S STOCKHOLDERS BE HELD?
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2><B>A:</B></FONT></DT><DD><FONT SIZE=2>The special meeting will be held on June&nbsp;&nbsp;&nbsp;&nbsp;, 2003 at 10:00&nbsp;a.m., local time, at the offices of Baltek, 108 Fairway
Court, Northvale, New Jersey 07647.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2><B>Q:</B></FONT></DT><DD><FONT SIZE=2>WHO IS ELIGIBLE TO VOTE?
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2><B>A:</B></FONT></DT><DD><FONT SIZE=2>All stockholders of record as of the Record Date.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2><B>Q:</B></FONT></DT><DD><FONT SIZE=2>WHAT AM I BEING ASKED TO APPROVE?
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2><B>A:</B></FONT></DT><DD><FONT SIZE=2>You are being asked to approve the acquisition of Baltek by Alcan, to be effected by means of the Merger between Baltek and Alcan
Balcorp. As a result of the Merger, Baltek will cease to be an independent, publicly-traded company and become a wholly-owned subsidiary of Alcan.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2><B>Q:</B></FONT></DT><DD><FONT SIZE=2>WHAT WILL BALTEK'S STOCKHOLDERS RECEIVE IN THE MERGER?
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2><B>A:</B></FONT></DT><DD><FONT SIZE=2>As a result of the Merger, Baltek's stockholders, other than those stockholders who validly exercise appraisal or dissenters' rights as
discussed in this proxy statement, will receive, as of the Closing Date, $15.17 per share of common stock (without interest and less applicable withholding taxes).
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2><B>Q:</B></FONT></DT><DD><FONT SIZE=2>DOES THE BOARD RECOMMEND VOTING IN FAVOR OF THE MERGER?
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2><B>A:</B></FONT></DT><DD><FONT SIZE=2>Yes. After careful consideration and upon the unanimous recommendation of the Special Committee, the Board has determined that the
Merger and the Merger Agreement are advisable and fair to, and in the best interests of, Baltek and its stockholders. Accordingly, the Board has unanimously approved the Merger Agreement and the
transactions it contemplates, including the Merger, and unanimously recommends that you vote "FOR" adoption of the Merger Agreement. Please also see the section entitled "The
Merger&#151;Reasons for the Merger and the Board's Recommendation" on page 17 of this proxy statement.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2><B>Q:</B></FONT></DT><DD><FONT SIZE=2>WHY IS THE BOARD RECOMMENDING THE MERGER?
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2><B>A:</B></FONT></DT><DD><FONT SIZE=2>The Board believes that the Merger maximizes the value of each stockholder's holdings in Baltek. In light of certain factors, such as
Baltek's family control, its inability to attract institutional investors due to a limited float, Baltek's relatively small shareholder base, a limited daily trading volume and lack of research
analyst coverage, the Merger not only offers stockholders fair consideration for their shares, but is in the best interests of Baltek and its stockholders. The Special Committee evaluated the fairness
of the Merger and unanimously recommended to the Board that the Merger is advisable and fair to, and in the best interests of, Baltek and its stockholders. For a more complete description of the
factors considered by the Special Committee, </FONT><FONT SIZE=2><I>see</I></FONT><FONT SIZE=2> "The Merger&#151;Reasons for the Merger and the Board's Recommendation" beginning on page 17 of
this proxy statement.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2><B>Q:</B></FONT></DT><DD><FONT SIZE=2>WHAT VOTE IS REQUIRED TO APPROVE THE TRANSACTION?
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2><B>A:</B></FONT></DT><DD><FONT SIZE=2>Applicable Delaware law requires that the holders of a majority of the outstanding shares of Baltek's common stock approve the Merger
proposal. The Voting Agreement Stockholders have entered into the Voting Agreement with Alcan agreeing to vote in favor of the proposed </FONT></DD></DL>
<P ALIGN="CENTER"><FONT SIZE=2>8</FONT></P>

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<P><FONT SIZE=2>transaction
and against any proposal made in opposition to or in competition with the Merger. Such persons held in the aggregate approximately 46% of the outstanding common stock of Baltek as of the
Record Date. These voting obligations do not limit the fiduciary obligations of Jacques and Jean J. Kohn in their capacity as officers and directors of Baltek. </FONT></P>

</UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2><B>Q:</B></FONT></DT><DD><FONT SIZE=2>WHAT DO I NEED TO DO NOW?
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2><B>A:</B></FONT></DT><DD><FONT SIZE=2>We urge you to read this proxy statement carefully, including its annexes, and to consider how the Merger affects you. After your
review, simply mail your completed, dated and signed proxy card in the enclosed return envelope as soon as possible so that your shares can be voted at the special meeting of Baltek's stockholders.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2><B>Q:</B></FONT></DT><DD><FONT SIZE=2>WHAT HAPPENS IF I DO NOT RETURN A PROXY CARD?
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2><B>A:</B></FONT></DT><DD><FONT SIZE=2>If you fail to return your proxy card, it will have the same effect as voting against the Merger.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2><B>Q:</B></FONT></DT><DD><FONT SIZE=2>MAY I VOTE IN PERSON?
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2><B>A:</B></FONT></DT><DD><FONT SIZE=2>If your shares are held in your name and not in street name, or through an intermediary, you may vote your shares in person at the
special meeting, rather than signing and returning your proxy card. If your shares are held in street name or through an intermediary, you must first obtain a proxy in your name from your broker and
bring it to the special meeting.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2><B>Q:</B></FONT></DT><DD><FONT SIZE=2>MAY I CHANGE MY VOTE AFTER I HAVE MAILED MY SIGNED PROXY CARD?
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2><B>A:</B></FONT></DT><DD><FONT SIZE=2>You may change your vote at any time before your proxy card is voted at the special meeting. You can do this in one of three ways.
First, you can send a written, dated notice to the Secretary of Baltek stating that you would like to revoke your proxy. Second, you can complete, date, and submit a new proxy card. Third, you can
attend the meeting and vote in person. Your attendance alone will not revoke your proxy. Notwithstanding the foregoing, if you have instructed a broker to vote your shares, you must follow directions
received from your broker to change those instructions.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2><B>Q:</B></FONT></DT><DD><FONT SIZE=2>IF MY SHARES ARE HELD IN STREET NAME BY MY BROKER, WILL MY BROKER VOTE MY SHARES FOR ME?
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2><B>A:</B></FONT></DT><DD><FONT SIZE=2>Your broker will not be able to vote your shares without instructions from you. You should instruct your broker to vote your shares,
following the procedure provided by your broker. Without instructions, your shares will not be voted, which will have the same effect as a vote against the Merger.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2><B>Q:</B></FONT></DT><DD><FONT SIZE=2>SHOULD I SEND IN MY BALTEK STOCK CERTIFICATES NOW?
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2><B>A:</B></FONT></DT><DD><FONT SIZE=2>No. However, after the Merger is completed, you will receive written instructions for surrendering your share certificates of Baltek's
common stock for your pro rata share of the aggregate consideration for the Merger in cash, without interest and less applicable withholding taxes.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2><B>Q:</B></FONT></DT><DD><FONT SIZE=2>WHEN DO YOU EXPECT THE MERGER TO BE COMPLETED?
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2><B>A:</B></FONT></DT><DD><FONT SIZE=2>We are working toward completing the Merger as quickly as possible. In addition to obtaining stockholder approval, we must satisfy all
other closing conditions, including the consent of certain third parties. We expect to complete the Merger on or shortly after the date of the special meeting. However, we cannot assure you as to when
or if the Merger will occur.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2><B>Q:</B></FONT></DT><DD><FONT SIZE=2>AM I ENTITLED TO APPRAISAL OR DISSENTERS' RIGHTS?
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2><B>A:</B></FONT></DT><DD><FONT SIZE=2>Holders of Baltek's common stock are entitled to appraisal rights under the Delaware General Corporation Law (the "DGCL")
in connection with the Merger. Please see the section entitled </FONT></DD></DL>
<P ALIGN="CENTER"><FONT SIZE=2>9</FONT></P>

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<UL>

<P><FONT SIZE=2>"The
Merger&#151;Rights of Dissenting Stockholders" on page 24 of this proxy statement for a discussion of appraisal and dissenters' rights. </FONT></P>

</UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2><B>Q:</B></FONT></DT><DD><FONT SIZE=2>WHAT ARE THE TAX CONSEQUENCES OF THE MERGER TO ME?
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2><B>A:</B></FONT></DT><DD><FONT SIZE=2>When you exchange your shares for cash, it will be considered a taxable transaction. Your tax consequences will depend on your personal
situation. You are urged to consult your tax advisor for a full understanding of the tax consequences of the Merger to you. A summary of the federal income tax consequences of the Merger can be found
beginning on page 28 of this proxy statement.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2><B>Q:</B></FONT></DT><DD><FONT SIZE=2>WHY WAS THE SPECIAL COMMITTEE FORMED?
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2><B>A:</B></FONT></DT><DD><FONT SIZE=2>Three of the six members of the Board are Baltek officers and may therefore have a conflict of interest. Your Board formed the Special
Committee to protect your interests in evaluating the terms of the Merger. For a description of these events, </FONT><FONT SIZE=2><I>see</I></FONT><FONT SIZE=2> "The Merger&#151;Reasons for
the Merger and the Board's Recommendation" beginning on page 17 of this proxy statement.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2><B>Q:</B></FONT></DT><DD><FONT SIZE=2>DOES ALCAN HAVE THE FINANCIAL RESOURCES TO MAKE PAYMENT?
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2><B>A:</B></FONT></DT><DD><FONT SIZE=2>Yes. Alcan anticipates that it will have sufficient cash on hand on the effective date of the Merger to cover the total amount of funds
required in connection with the Merger and related transactions.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2><B>Q:</B></FONT></DT><DD><FONT SIZE=2>IS THE FINANCIAL CONDITION OF ALCAN RELEVANT TO MY DECISION ON HOW TO VOTE?
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2><B>A:</B></FONT></DT><DD><FONT SIZE=2>Your shares will be purchased in the Merger for cash and the Merger is not subject to any financing condition. Because Alcan anticipates
having sufficient cash to finance the Merger, we do not believe that its financial condition is relevant to your decision on how to vote.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2><B>Q:</B></FONT></DT><DD><FONT SIZE=2>WHO CAN HELP ANSWER MY QUESTIONS?
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2><B>A:</B></FONT></DT><DD><FONT SIZE=2>If you would like additional copies, without charge, of this proxy statement or if you have questions about the Merger, including the
procedures for voting your shares, you should contact Ronald Tassello at Baltek Corporation, 10 Fairway Court, P.O.&nbsp;Box 195, Northvale, New Jersey 07647, telephone number:
(201)&nbsp;767-1400. </FONT></DD></DL>
<P ALIGN="CENTER"><FONT SIZE=2>10</FONT></P>

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<A NAME="toc_de4672_1"> </A>
<BR></FONT><FONT SIZE=2><B>DEFINITIONS OF KEY TERMS    <BR>    </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To assist you as you review this proxy statement, the following are several key terms used throughout this proxy statement and are qualified by reference to the
meanings ascribed to them in the Merger Agreement. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"Acquisition
Proposal" is defined as any proposal or offer with respect to a merger, reorganization, share exchange, consolidation, purchase or similar transaction involving more than 5%
of the consolidated assets or any outstanding equity securities of Baltek. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"Closing
Date" means the date on which the closing of the Merger will take place, with such date occurring on the second business day following the day on which the last of the
conditions of the Merger Agreement will have been satisfied or waived. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"Company
Material Adverse Effect" means an effect, change, development or circumstance that, individually or in the aggregate, is or is reasonably likely to be material and adverse with
respect to the financial condition, results of operations, assets, business or prospects of Baltek and its subsidiaries taken as a whole. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"Superior
Proposal" means a more favorable Acquisition Proposal where Baltek, its directors, officers, agents or its other representatives (A)&nbsp;engage in any negotiations or
discussions with any person or entity who has made an unsolicited bona fide written Acquisition Proposal or (B)&nbsp;recommend an Acquisition Proposal to the stockholders of Baltek, only to the
extent that, (i)&nbsp;in each such case referred to in clause&nbsp;(A) or (B), the Board determines in good faith (after consultation with outside legal counsel) that failure to take such action
would, in the absence of the foregoing proscriptions, be inconsistent with the fiduciary duties of the directors under applicable law and (ii)&nbsp;in the case referred to in clause&nbsp;(B), the
Board determines in good faith (after consultation with its financial advisor) that an Acquisition Proposal, if consummated, would result in a transaction more favorable to Baltek's stockholders, from
a financial point of view, than the transaction contemplated by the Merger Agreement (being a cash offer superior to the transaction contemplated by the Merger Agreement by no less than 15% of the
aggregate consideration to be paid to Baltek's stockholders). </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="de4672_special_note_regarding_forward-looking_statements"> </A>
<A NAME="toc_de4672_2"> </A>
<BR></FONT><FONT SIZE=2><B>SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS    <BR>    </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This proxy statement may contain "forward-looking statements" relating to the proposed acquisition of Baltek and the future performance of Baltek and Alcan.
Forward-looking statements are neither promises nor guarantees, but are subject to risks, uncertainties and other factors that may cause the actual results, performance or achievements of Baltek or
Alcan, or developments in Baltek's or Alcan's business or its industry, to differ materially from the anticipated results, performance, achievements or developments expressed or implied by such
forward-looking statements. These risks and uncertainties include, but are not limited to: (1)&nbsp;risks involved in whether and when the proposed acquisition will be completed; (2)&nbsp;if the
Merger Agreement is terminated under circumstances related to the receipt of a Superior Proposal or the failure to obtain a vote approving the Merger, Baltek must pay a termination fee of $1,200,000
to Alcan; (3)&nbsp;difficulties related to obtaining stockholder approval for completing the acquisition, if obtained at all; (4)&nbsp;legislative or regulatory changes which may adversely affect
the businesses in which the companies are engaged; and (5)&nbsp;if the Merger is not completed, Baltek's payment of certain of its expenses related to the Merger, including substantial legal,
accounting and financial advisory fees which could affect Baltek's results of operations, cash liquidity and stock price. A more detailed discussion of these and other important risk factors can be
found in the sections entitled "Business" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in documents filed by Baltek with the Securities and Exchange
Commission (the "SEC"), including Baltek's Report on Form&nbsp;10-K for the fiscal year ended December&nbsp;31, 2002. Forward-looking statements in this proxy statement are based on
management's beliefs and opinions at the time the statements are made, and there should be no expectation that these forward-looking statements will be updated or supplemented as a result of changing
circumstances or otherwise, and Baltek disavows and disclaims any obligation to do so. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>11</FONT></P>

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<P ALIGN="CENTER"><FONT SIZE=2><A
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<A NAME="toc_de4672_3"> </A>
<BR></FONT><FONT SIZE=2><B>THE SPECIAL MEETING    <BR>    </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Baltek is furnishing this proxy statement to its stockholders as part of the solicitation of proxies by the Board for use at the special meeting. </FONT></P>


<P><FONT SIZE=2><B>DATE, TIME AND PLACE  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Baltek will hold the special meeting at its offices at 108 Fairway Court, Northvale, New Jersey 07647, at 10:00 am, local time, on June&nbsp;&nbsp;&nbsp;&nbsp;, 2003. </FONT></P>

<P><FONT SIZE=2><B>PURPOSE OF SPECIAL MEETING  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At the special meeting, Baltek will ask holders of its common stock to adopt the Merger Agreement. After careful consideration, the Board has determined that the
Merger Agreement and the Merger are advisable and fair to, and in the best interests of, Baltek and its stockholders. Accordingly, the Board has unanimously approved the Merger Agreement and the
transactions it contemplates, including the Merger, and unanimously recommends that Baltek's stockholders vote "</FONT><FONT SIZE=2><B>FOR</B></FONT><FONT SIZE=2>" adoption of the Merger Agreement
and approval of the transactions it contemplates, including the Merger. </FONT></P>

<P><FONT SIZE=2><B>RECORD DATE; STOCK ENTITLED TO VOTE; QUORUM  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Only holders of record of Baltek's common stock at the close of business on the Record Date are entitled to notice of and to vote at the special meeting. On the
Record Date,&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares of Baltek's common stock were issued and outstanding and held by
approximately&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;holders of record. A quorum is present at the special meeting if a
majority of the shares of Baltek's common stock issued and outstanding and entitled to vote on the Record Date are represented in person or by proxy. In the event that a quorum is not present at the
special meeting, it is expected that the meeting will be adjourned or postponed to solicit additional proxies. Holders of record of Baltek's common stock on the Record Date are entitled to one vote
per share at the special meeting on the proposal to adopt the Merger Agreement. </FONT></P>

<P><FONT SIZE=2><B>VOTES REQUIRED  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under Delaware law, the adoption of the Merger Agreement requires the affirmative vote of the holders of a majority of the shares of Baltek's common stock
outstanding on the Record Date. If a Baltek stockholder abstains from voting or does not vote, either in person or by proxy, it will effectively count as a vote against the adoption of the Merger
Agreement. </FONT></P>

<P><FONT SIZE=2><B>VOTING BY BALTEK'S DIRECTORS, EXECUTIVE OFFICERS AND CERTAIN STOCKHOLDERS  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At the close of business on the Record Date, Jacques Kohn, Jean J. Kohn, The Bernard Kohn Revocable Living Trust and The Bernard Kohn Irrevocable Descendants
Trust owned and were entitled to vote 1,072,007 shares of Baltek's common stock, which represented approximately 46% of the shares of Baltek's common stock outstanding on that date. Under the terms of
a voting agreement (see "The Voting Agreement" on page 36 of this proxy statement), these members and affiliates of the Kohn family have agreed to vote their shares of Baltek's common stock, and the
shares over which they have voting control, in each case as owned or controlled on March&nbsp;5, 2003, for the adoption of the Merger Agreement. </FONT></P>

<P><FONT SIZE=2><B>VOTING OF PROXIES  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If a Baltek stockholder wishes to vote by proxy, whether or not he, she or it plans to attend the special meeting in person, such stockholders is requested to
complete, sign, date and promptly return the enclosed proxy card in the postage-prepaid envelope provided for this purpose no later than </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>12</FONT></P>

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<BR>

<P><FONT SIZE=2>4:00&nbsp;p.m.,
local time, on the business day prior to the special meeting to ensure that his, her or its shares are voted. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All
shares represented by properly executed proxies received in time for the special meeting will be voted at the special meeting by the proxyholder named on the enclosed proxy card or
by the person nominated by the stockholders on the proxy card, in the manner specified by the stockholders. Properly executed proxies that do not contain voting instructions will be voted "FOR" the
adoption of the Merger Agreement. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shares
of Baltek's common stock represented at the special meeting but not voting, including abstentions and broker non-votes, will be treated as present at the special
meeting for purposes of determining the presence or absence of a quorum for the transaction of all business. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Only
shares affirmatively voted for the adoption of the Merger Agreement, including properly executed proxies that do not contain voting instructions, will be counted as favorable votes
for that proposal. If a Baltek stockholder abstains from voting or does not execute a proxy, it will effectively count as a vote against the adoption of the Merger Agreement. If a stockholder's shares
are held by his, her or its broker (or a bank), such broker will vote the shares for the stockholder only if the stockholder provides instructions to his, her or its broker on how to vote the shares.
A stockholder should follow the directions provided by his, her or its broker regarding how to instruct the broker to vote the shares. A stockholder's broker cannot vote the shares without specific
instructions from the stockholder. These non-voted shares will effectively count as votes against the adoption of the Merger Agreement. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
persons named as proxies by a stockholder may propose and vote for one or more adjournments of the special meeting, including adjournments to permit further solicitations of proxies.
No proxy voted against the proposal to adopt the Merger Agreement will be voted in favor of any such adjournment or postponement. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Baltek
does not expect that any matter other than the proposal to adopt the Merger Agreement will be brought before the special meeting. If, however, the Board properly presents other
matters, the persons
named as proxies will vote in accordance with their judgment as to matters that they believe to be in the best interests of the stockholders. </FONT></P>


<P><FONT SIZE=2><B>REVOCABILITY OF PROXIES  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The grant of a proxy on the enclosed form of proxy does not preclude the stockholder from voting in person at the special meeting. Such stockholder may change
his, her or its vote at any time before the respective proxy card is voted at the special meeting. A stockholder can do this in one of three ways. First, a stockholder can send a written, dated notice
to the Secretary of Baltek stating that such stockholder would like to revoke his, her or its proxy. Second, a stockholder can complete, date and submit a new proxy card, provided that the new proxy
card is received in time for the special meeting. Third, the stockholder can attend the special meeting and vote in person. Attending the special meeting without voting will not revoke his, her or its
proxy. Notwithstanding the foregoing, if the stockholder has instructed a broker to vote his, her or its shares, such stockholder must follow directions received from his, her or its broker to change
those instructions. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any
written revocation or subsequent proxy card should be delivered to Baltek Corporation, 10 Fairway Court, P.O.&nbsp;Box 195, Northvale, New Jersey 07647, Attention: Secretary, or
hand delivered to the Secretary no later than 4:00&nbsp;p.m., local time, on the business day prior to the special meeting. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>13</FONT></P>

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<P><FONT SIZE=2><B>SOLICITATION OF PROXIES  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Baltek will bear the entire cost of solicitation of proxies, including preparation, assembly, printing and mailing of this proxy statement, the proxy card and any
additional information furnished to stockholders. Copies of solicitation materials will be furnished to banks, brokerage houses, fiduciaries and custodians holding in their names shares of common
stock beneficially owned by others to forward to such beneficial owners. Baltek may reimburse persons representing beneficial owners of common stock for their costs of forwarding solicitation
materials to such beneficial owners. Original solicitation of proxies by mail may be supplemented by telephone, telegram or personal solicitation by directors, officers or employees of Baltek. No
additional compensation will be paid to directors, officers or employees for such services. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stockholders
should not send stock certificates with their proxies. A letter of transmittal with instructions for the surrender of Baltek's common stock certificates will be mailed to
Baltek's stockholders as soon as reasonably practicable after completion of the Merger. Stockholders should
send their stock certificates only in compliance with the instructions that will be provided in the letter of transmittal. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="de4672_the_companies"> </A>
<A NAME="toc_de4672_4"> </A>
<BR></FONT><FONT SIZE=2><B>THE COMPANIES    <BR>    </B></FONT></P>

<P><FONT SIZE=2><B>BALTEK CORPORATION  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Baltek is the largest supplier of end grain balsa core material to the worldwide composites market, with a wide and innovative product range. Baltek also
distributes structural foam core materials manufactured by Alcan Airex, and laminate bulkers imported from Holland and Japan, and a special core adhesive manufactured by ATC Chemicals, Oakville,
Canada. Baltek also supplies balsa lumber to model businesses around the globe. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Baltek's
principal executive offices are located at 108 Fairway Court, Northvale, New Jersey 07647, and its telephone number is (201)&nbsp;767-1400. Additional information
regarding Baltek is contained in Baltek's filings with the SEC. See also "Where You Can Find More Information" on page 38 of this proxy statement. </FONT></P>

<P><FONT SIZE=2><B>ALCAN&nbsp;INC.  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Alcan is a publicly traded company involved in many aspects of the aluminum and packaging industries, the activities of which include bauxite mining, alumina
refining, specialty chemicals, power generation and aluminum smelting, manufacturing, recycling and packaging, as well as research and development. Alcan Composites, a unit of the company's Engineered
Products group, has a comprehensive global product offering that ranges from lightweight and rigid plastic foam sheets to aluminum composite panels, sandwich core material, structural components and
prefabricated modules. Its structural foam products are widely used in the growing marine, mass transportation, wind power and aerospace markets, and use the same distribution channels as Baltek's
balsa products. Alcan has a network of operations in 41 countries with 53,000 dedicated employees, a global customer base, innovative products and advanced technologies. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Alcan's
principal executive offices are located at 1188 Sherbrooke Street West, Montreal, Quebec H3A&nbsp;3G2 Canada, and its telephone number is (514)&nbsp;848-8000.
Additional information regarding Alcan is contained in Alcan's filings with the SEC and Canadian securities regulatory authorities. See also "Where You Can Find More Information" on page 38 of this
proxy statement. </FONT></P>

<P><FONT SIZE=2><B>ALCAN BALCORP,&nbsp;INC.  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Alcan Balcorp is a wholly-owned subsidiary of Alcan, having been organized solely for the purpose of entering into the Merger Agreement with Baltek and completing
the Merger. It has not conducted any business operations. If the Merger is consummated, Alcan Balcorp will cease to exist following such Merger. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>14</FONT></P>

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<BR></FONT><FONT SIZE=2><B>THE MERGER    <BR>    </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following discussion summarizes the material terms of the Merger, the Merger Agreement and the Voting Agreement, as well as the main events leading up to the
signing of the Merger Agreement. This description is qualified in its entirety by the full text of the Merger Agreement. Stockholders should read the Merger Agreement, attached as </FONT> <FONT SIZE=2><I>Annex A</I></FONT><FONT SIZE=2> to this proxy
statement, and the Voting Agreement, attached as </FONT><FONT SIZE=2><I>Annex B</I></FONT><FONT SIZE=2> to this proxy statement.
In the event that there are any differences between this summary and the Merger Agreement, the terms of the Merger Agreement shall prevail. </FONT></P>

<P><FONT SIZE=2><B>BACKGROUND TO THE MERGER  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The terms and conditions of the Merger Agreement and the Merger are the result of arm's-length negotiations between representatives of Alcan and representatives
of Baltek. Set forth below is a summary of the background of these negotiations. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Baltek's
industry is highly concentrated and requires substantial capital to remain competitive with new products. Baltek competes with large, better-capitalized competitors. In
addition, certain members of the Kohn family decided to provide for an orderly transition of the company when they retire. As a result of the foregoing and its inability to attract institutional
investors due to a limited float, its relatively small shareholder base, its limited daily trading volume and lack of research analyst coverage, Baltek has regularly evaluated different strategies for
improving its competitive position and enhancing stockholder value. As part of these evaluations, Baltek has, from time to time, considered various strategic alternatives to pursuing its business plan
as an independent entity, including acquisitions, distributions and various business combinations. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
January of 2001, the Board determined to examine the feasibility of a sale of Baltek to financial and strategic buyers. Over the next two months, the Board evaluated several
investment banking firms in order to select one of them as financial advisor to the Board. Following the meetings, the Board determined to retain Elliot Stein, Jr. as its financial advisor, based on
his expertise in mergers and acquisitions and finance, knowledge of Baltek's industry and his prior relationship with Baltek. Baltek and Mr.&nbsp;Stein entered into an engagement letter in March of
2001, and the Board authorized Mr.&nbsp;Stein to contact likely third party strategic and financial acquirers to explore the possibility of a business combination or merger. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Commencing
in March of 2001 and continuing through January of 2002, Mr.&nbsp;Stein contacted a number of potential third party financial acquirors. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
February&nbsp;12, 2002, Rolf Kaufmann, Managing Director of Alcan Airex, and Thomas G. Preisel, Senior Vice President and Chief Operating Officer of Baltek, met to discuss existing
distributor relationships. At that meeting, Mr.&nbsp;Kaufmann asked Mr.&nbsp;Preisel if he believed that Baltek would entertain an offer to purchase its business through a business combination.
That evening, Messrs.&nbsp;Kaufmann and Preisel contacted Jacques Kohn, President and Chief Executive Officer of Baltek, and Margot W. Kohn, corporate Secretary of Baltek and Mr.&nbsp;Kohn's wife,
to discuss the feasibility of such a transaction. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
February&nbsp;13, 2002, discussions continued among Mr.&nbsp;Kaufmann, Mr.&nbsp;Kohn and Mr.&nbsp;Preisel to determine interest in a potential business combination and discuss
in general terms the potential benefits of a transaction. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
February&nbsp;16, 2002, Mr.&nbsp;Kohn informed Bernard J. Wald of Herzfeld&nbsp;&amp; Rubin, P.C., Baltek's attorneys, and Mr.&nbsp;Stein of the inquiry from Alcan. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
March&nbsp;29, 2002, a Confidentiality Agreement was entered into between Alcan Airex and Baltek. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>15</FONT></P>

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<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
April&nbsp;11, 2002, Messrs.&nbsp;Kohn and Preisel of Baltek, Mr.&nbsp;Stein and Georg Reif, President of Alcan Composites, Mr.&nbsp;Kaufmann, Timothy Leyne of Alcan and
Hubert Zimmermann of Alcan Composites met at an industry conference to discuss a proposed preliminary due diligence schedule and activity list necessary in order to permit Alcan to determine its level
of interest in a transaction with Baltek. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;From
April&nbsp;11, 2002 to May&nbsp;7, 2002, Baltek provided Alcan with preliminary financial and marketing information for their internal valuation analysis. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;From
May&nbsp;7, 2002 through May&nbsp;9, 2002, Messrs.&nbsp;Preisel, Kaufmann and Reif met in Zurich, Switzerland to discuss structural compatibility of organizations. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
June&nbsp;12, 2002, Baltek's directors were informed of, and provided an update on the status of, the discussions with Alcan. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
August&nbsp;6, 2002, Messrs.&nbsp;Preisel and Kohn from Baltek and Mr.&nbsp;Stein met in New York with Messrs.&nbsp;Reif and Leyne of Alcan to discuss initial proposed terms
for a transaction. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
August&nbsp;15, 2002, the Board met to discuss the initial proposed terms of a transaction with Alcan. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;From
October&nbsp;9 through November&nbsp;3, 2003, Alcan conducted preliminary due diligence of Baltek's business at Baltek's headquarters and plants in New Jersey and Baltek's
facilities in Ecuador. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
December&nbsp;6, 2002, Baltek's senior management, its attorneys from Herzfeld&nbsp;&amp; Rubin and Mr.&nbsp;Leyne, along with Pierre Chenard and Ann Francis, Alcan's counsel, met
in New York to discuss matters relating to the transaction and conducted extensive discussions relating to how they could be resolved. A proposed term sheet and letter were given to Baltek. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
December&nbsp;18, 2002, an initial draft of the Merger Agreement was distributed by Alcan. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
December&nbsp;19, 2002, members of management from Alcan and Baltek met to discuss significant open matters which, if not resolved, would result in the termination of discussions. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During
the months of January and February&nbsp;2003, several meetings were held to continue negotiation of the terms of the Merger and the Merger Agreement. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
February&nbsp;20, 2003, Baltek hired Phoenix to prepare a fairness opinion for the Board in connection with the Merger. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
February&nbsp;25, 2003, following resolution of certain outstanding matters, revised draft Merger documents were circulated in a form to be presented to the respective boards of
directors of Baltek and Alcan for their review. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
March&nbsp;3, 2003, the Board and the Special Committee held special meetings to consider the proposed Merger with Alcan. Representatives of Herzfeld&nbsp;&amp; Rubin reviewed the
Merger Agreement and related transaction documents, and any changes thereto from the copies distributed to the Board on February&nbsp;25, 2003. Phoenix then presented its financial analysis relating
to the proposed transaction and rendered its opinion to the Special Committee and to the Board that, as of March&nbsp;3, 2003, and subject to the assumptions, factors and limitations set forth in
the written opinion, the consideration for the Merger payable to Baltek's stockholders in the proposed transaction was fair, from a financial point of view, to such stockholders. Following these
presentations, the Board further discussed the potential Merger and the Special Committee proposed changes to the Merger Agreement prior to submission to the Board for approval. The meeting was
adjourned until 11:00 am March&nbsp;4, 2003. Mr.&nbsp;Kohn and representatives from Herzfeld&nbsp;&amp; Rubin continued to negotiate terms of the Merger Agreement. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
March&nbsp;4, 2003, having been advised that Alcan's board and management had approved the terms and conditions of the proposed Merger Agreement, the Board and the Special
Committee, </FONT></P>

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<P><FONT SIZE=2>consisting
of Bernard J. Wald, Benson J. Zeikowitz and William F. Nicklin, reconvened its special meeting to consider the proposed Merger with Alcan. After receiving updated presentations from the
attorneys and an updated fairness opinion from Phoenix, the Special Committee further discussed the potential Merger, following which, it unanimously recommended the adoption and approval of the
Merger Agreement, the Merger and the transactions contemplated thereby to the Board. Thereafter, the Board further discussed the potential Merger and the recommendation by the Special Committee,
following which, by a unanimous vote of all directors, the Board determined that the Merger was fair to, and in the best interests of, Baltek and its stockholders, and approved the Merger, the Merger
Agreement, the ancillary documents and the other transactions related thereto. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
March&nbsp;5, 2003, Baltek, Alcan and the other parties thereto executed the Merger Agreement, Voting Agreement and related transaction documents. After the closing of trading on
Nasdaq on March&nbsp;5, 2003, Baltek submitted to Nasdaq for its review a press release announcing the Merger, which was publicly disseminated later that evening. </FONT></P>

<P><FONT SIZE=2><B>REASONS FOR THE MERGER AND THE BOARD'S RECOMMENDATION  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following discussion of Baltek's reasons for the Merger contains a number of forward-looking statements that reflect the current views of Baltek with respect
to future events that may have an effect on its future financial performance as an independent company. Forward-looking statements are subject
to risks and uncertainties. Actual results and outcomes may differ materially from the results and outcomes discussed in the forward-looking statements. Cautionary statements that identify important
factors that could cause or contribute to differences in results and outcomes include those discussed in "Special Note Regarding Forward-Looking Statements" on page 11 of this proxy statement. </FONT></P>

<UL>

<P><FONT SIZE=2><B> Special Committee of the Board  </B></FONT></P>

</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Special Committee consists of independent Baltek directors and was established by the Board to ensure that the interests of Baltek's stockholders were
protected during the evaluation of the terms and conditions of the Merger Agreement. Specifically, the Special Committee was established by the Board due to the fact that Jacques Kohn and Jean J. Kohn
and certain other members of the Kohn family and related entities owned, in the aggregate, approximately 46% of Baltek's outstanding common stock. Additionally, three of the six members of the Board
are also Baltek executive officers, including Jacques Kohn, Jean J. Kohn and Margot W. Kohn, who serve as President and Chief Executive Officer, Executive Vice President and Secretary, respectively. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Special Committee reviewed the terms and conditions of the Merger Agreement and the consideration to be received by Baltek's stockholders upon the consummation of the Merger and
further evaluated the fairness opinion received from Phoenix. Subsequently, the Special Committee made recommendations to the Board based upon its independent review and discussion of the Merger
Agreement and fairness opinion received from Phoenix. After such reviews and upon the Board acting on certain recommendations to modify certain terms of the Merger Agreement, the Special Committee
unanimously recommended that the Board approve the Merger Agreement and the transactions contemplated thereby. </FONT></P>

<UL>

<P><FONT SIZE=2><B> Reasons for the Merger  </B></FONT></P>

</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Board has determined that the terms of the Merger Agreement and the Merger are advisable and fair to, and in the best interests of, Baltek and its
stockholders. In the course of reaching its decision to approve the Merger and to approve and adopt the Merger Agreement, the Board consulted with Baltek's management, financial advisors and legal
counsel. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prior
to approving the Merger and the Merger Agreement, the Board considered a number of alternatives for enhancing stockholder value as presented by Baltek's management at the meetings
of </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>17</FONT></P>

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<P><FONT SIZE=2>the
Board on March&nbsp;3 and 4, 2003. Based on such information, the terms of the Merger, the fairness opinion of Phoenix and other information discussed during the Board's meeting, the Board
concluded that remaining an independent entity was not in its stockholders' best interests due to Baltek's financial position, the price of its stock and business prospects as a stand-alone entity. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
decision of the Board was based upon a number of potential benefits of the transaction, including the following: </FONT></P>

<UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>the
consideration for the Merger relative to the historical market prices of Baltek's common stock, and in particular the fact that the anticipated $15.17 per share
represents approximately a 77% premium over the closing price of the twenty day average trading price of Baltek's common stock prior to the date of the signing of the Merger Agreement, and a 74.4%
premium over the closing price of Baltek's common stock on the trading day prior to announcement;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>the
judgment of the Board that the anticipated $15.17 per share price represented the highest price that could be negotiated with Alcan;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>the
consideration for the Merger is all cash, which provides certainty of value to Baltek's stockholders compared to a transaction in which they would receive stock or other
non-cash consideration, especially in light of the volatility of the stock market;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>the
Merger maximizes the value of each stockholder's holdings in Baltek in light of Baltek's limited daily trading volume, relatively small shareholder base, family control,
lack of research analyst coverage and the fact that a limited float effectively precludes participation by institutional investors;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>the
financial stability of Alcan and the fact that the Merger is not subject to a financing condition;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>the
financial analysis and presentation by Phoenix and the opinion of Phoenix that, as of the date of the opinion, and based on procedures followed, assumptions made, the
matters considered and the limitations on the review undertaken described in the opinion (which is attached as </FONT><FONT SIZE=2><I>Annex C</I></FONT><FONT SIZE=2> to this proxy statement), the
consideration payable to Baltek's stockholders in the Merger was fair to such stockholders from a financial point of view (please see "Opinion of Phoenix Securities Corp." on page 19 of this proxy
statement for more information on Phoenix's fairness opinion, including the underlying assumptions and methodologies, matters considered and limitations on the review undertaken);
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>the
Merger Agreement enables Baltek to participate in discussions and negotiations with, furnish non-public information and afford access to Baltek's books and
records to, any third party that submits an unsolicited competing bid to acquire Baltek (subject to the limitations described under "Limitation on Considering Other Acquisition Proposals" on page 33
of this proxy statement); and
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>the
Merger Agreement permits Baltek to terminate the Merger Agreement so that Baltek may enter into a definitive agreement for a competing proposal that the Board believes
to be superior to the proposed Merger with Alcan, subject to the requirements of the Merger Agreement and the payment by Baltek of a termination fee of $1,200,000, or approximately 3.4% of the
aggregate consideration for the Merger. </FONT></DD></DL>
</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Board also identified and considered a number of additional factors in its deliberations concerning the proposed transaction, including the following: </FONT></P>

<UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>the
prospects of Baltek and the potential stockholder value that could be expected to be generated if Baltek were to remain an independent, publicly-traded company,
including Baltek's business strategy going forward, cash reserves, the uncertainty of being able to expand into new </FONT></DD></DL>
</UL>
<P ALIGN="CENTER"><FONT SIZE=2>18</FONT></P>

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<P><FONT SIZE=2>markets
and to increase revenue from existing customers, and the prospect of increased competition, especially from competitors with greater name recognition and financial and other resources; </FONT></P>

</UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>the
fact that Mr.&nbsp;Stein and members of Baltek's management had contacted a number of parties regarding their interest in a possible transaction with Baltek and,
although each party was
afforded ample time and information to submit an offer, of those contacted only Alcan had initiated serious discussions to acquire Baltek;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>the
risk that the transaction might not be consummated, and in particular the number of conditions to completion of the Merger and the possibility that one or more
conditions might not be satisfied;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>in
the event that the transaction is not consummated, the possible negative effects of the announcement of the Merger on Baltek's relationships with customers and suppliers,
employee morale and the potential loss of key employees and the impact on sales, operating results and stock price; and
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>the
current and anticipated regional, national and international economic climate. </FONT></DD></DL>
</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
preceding discussion of the information and factors considered by the Board is not, and is not intended to be, exhaustive. In light of the variety of factors considered in connection
with its evaluation of the Merger and, in view of the number and wide variety of positive and negative factors considered in connection with its evaluation of the Merger, and the complexity of these
matters, the Board did not find it practicable to, nor did it attempt to, quantify, rank or otherwise assign relative weights to the specific factors it considered. In considering the factors
described above, individual members of the Board may have given different weight to different factors. The Board considered all these factors together and, on the whole, considered them to be
favorable to, and to support, its determination. </FONT></P>

<UL>

<P><FONT SIZE=2><B> Board Recommendation  </B></FONT></P>

</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;After careful consideration, the Board has determined that the Merger Agreement and the Merger are advisable and fair to, and in the best interests of, Baltek and
its stockholders. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>THE BOARD HAS DECLARED ADVISABLE, AND UNANIMOUSLY RECOMMENDS, THAT THE STOCKHOLDERS VOTE "FOR" THE ADOPTION OF THE MERGER, THE MERGER AGREEMENT AND THE
TRANSACTIONS CONTEMPLATED THEREBY.</B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
considering the recommendation of the Board with respect to the Merger, stockholders should be aware that certain directors and executive officers of Baltek have interests in the
Merger that may be different from, or are in addition to, the interests of Baltek's stockholders generally. Please see the section entitled "Interests of Baltek's Directors and Executive Officers in
the Merger" on page 23 of this proxy statement. </FONT></P>


<P><FONT SIZE=2><B>OPINION OF PHOENIX SECURITIES CORP.  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Baltek retained Phoenix to render to the Board an opinion as to the fairness, from a financial point of view, of the consideration to be received by Baltek's
stockholders in the transaction. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Phoenix
delivered its opinion to the Board on March&nbsp;4, 2003, which stated that as of that date and based upon and subject to the assumptions, factors and limitations set forth in
the written opinion and described below, the consideration proposed to be paid to Baltek's stockholders in the proposed Merger was fair, from a financial point of view, to those stockholders. A copy
of Phoenix's written opinion is attached to this proxy statement as </FONT><FONT SIZE=2><I>Annex C</I></FONT><FONT SIZE=2>. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>19</FONT></P>

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<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;While
Phoenix rendered its opinion and provided certain analyses to the Board, Phoenix was not requested to and did not make any recommendation to the Board as to the specific form or
amount of the consideration to be received by Baltek's stockholders in the proposed Merger, which was determined through negotiations between Baltek and Alcan. Phoenix's written opinion, which was
directed to the Board, addresses only the fairness, from a financial point of view, of the consideration to be received by Baltek's stockholders in the Merger, does not address Baltek's underlying
business decision to proceed with or effect the Merger or the structure thereof or the relative merits of the Merger compared to any alternative business strategy or transaction in which Baltek might
engage, and does not constitute a recommendation to any Baltek stockholder as to how to vote in the Merger. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
arriving at its opinion, Phoenix's review included, without limitation: </FONT></P>

<UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>publicly
available financial, business and operating information relative to Baltek;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>the
reported prices and trading activity for shares of Baltek's common stock;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>Baltek's
past and current operations, financial condition, forecasts and prospects and the strategic, financial and operational benefits anticipated from the Merger based on
discussions with senior executives of Baltek;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>financial
terms, to the extent publicly available, of certain comparable financing transactions;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>the
Merger Agreement; and
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>such
other analyses and factors as Phoenix deemed appropriate. </FONT></DD></DL>
</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
conducting its valuation analysis, Phoenix was of the opinion that the discounted cash flow analysis provided the best indicator of Baltek's valuation. Phoenix based its opinion on
several factors, including the lack of comparable companies to Baltek, Baltek's limited float effectively precluding participation by institutional investors, Baltek's limited daily trading volume and
its relatively small shareholder base. A further factor noted by Phoenix was that Baltek's public valuation is likely to continue to suffer due to the location of a sizable amount of its assets in
countries with higher perceived investment risk. Accordingly, Phoenix concluded that generally used valuation criteria for publicly-traded companies, such as price-to-book
value and price-to-earnings, were not meaningful valuation tools. The data and information contained in the discounted cash flow analysis and comparable company analysis were
provided to Baltek by Phoenix and are based on market and securities data gathered by Phoenix and internal financial material prepared by Baltek. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As
is customary in the rendering of fairness opinions, Phoenix based its opinion on financial, economic, market and other conditions in effect, and the information made available to
Phoenix by Baltek, as of March&nbsp;4, 2003. It was understood that, although subsequent developments may affect Phoenix's opinion, Phoenix does not have any obligation to update, revise or reaffirm
its opinion. Phoenix expressed no opinion as to whether any alternative transaction might produce consideration for the holders of Baltek's capital stock in an amount in excess of that contemplated in
the Merger. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
accordance with customary investment banking practice, Phoenix employed generally accepted valuation methods in reaching its opinion. The following is a summary of the material
financial analyses that Phoenix utilized in providing its opinion: </FONT></P>

<UL>

<P><FONT SIZE=2><B> Discounted Cash Flow Analysis  </B></FONT></P>

</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Due to Baltek's capital structure, country risk assessments, market size and the lack of companies that Phoenix would consider reasonably comparable to Baltek,
Phoenix determined that the discounted cash flow analysis served as the most appropriate valuation method. Based upon the projections provided to Phoenix by the management of Baltek, Phoenix performed
the discounted cash flow analysis using debt-free operating cash flows. Deriving an average cost of capital, Phoenix then used </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>20</FONT></P>

<HR NOSHADE>
<!-- ZEQ.=10,SEQ=25,EFW="2110420",CP="BALTEK CORP.",DN="1",CHK=723431,FOLIO='20',FILE='DISK009:[03NYC2.03NYC4672]DE4672A.;14',USER='MKEANE',CD=';9-MAY-2003;13:40' -->
<A NAME="page_de4672_1_21"> </A>

<P><FONT SIZE=2>selected
discount rates to make valuation ranges for the operating cash flow stream. The terminal value at the end of fiscal year 2007 was then computed by Phoenix using a three-times multiple on the
projected debt-free cash flow in fiscal year 2007 that was provided to Phoenix by Baltek management. The present value of Baltek's future cash flows were calculated using discount rates of
13%, 15% and 17%. Such discounted cash flow analysis is represented in the following table: </FONT></P>

<P><FONT SIZE=2>(In $000s) </FONT></P>

<!-- User-specified TAGGED TABLE -->
<TABLE WIDTH="100%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="BOTTOM">
<TH WIDTH="100%" ALIGN="CENTER"><FONT SIZE=1><B>Present Value of Debt-free Projected Cash Flows<BR> </B></FONT><HR NOSHADE></TH>
</TR>
</TABLE>
<!-- end of user-specified TAGGED TABLE -->

<!-- User-specified TAGGED TABLE -->
<TABLE WIDTH="100%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="BOTTOM">
<TH WIDTH="6%" ALIGN="LEFT"><FONT SIZE=2>&nbsp;</FONT><BR></TH>
<TH WIDTH="13%"><FONT SIZE=2>&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="LEFT"><FONT SIZE=2>&nbsp;</FONT><BR></TH>
<TH WIDTH="13%" ROWSPAN=2><FONT SIZE=1>&nbsp;</FONT></TH>
<TH COLSPAN=8 ROWSPAN=2 ALIGN="CENTER"><FONT SIZE=1><B>Discount Rate<BR> </B></FONT><HR NOSHADE></TH>
</TR>
<TR VALIGN="BOTTOM">
<TH WIDTH="6%" ROWSPAN=2 ALIGN="LEFT"><FONT SIZE=1><B>Year<BR> </B></FONT><HR NOSHADE></TH>
<TH WIDTH="13%" ROWSPAN=2><FONT SIZE=1>&nbsp;</FONT></TH>
<TH COLSPAN=2 ROWSPAN=2 ALIGN="CENTER"><FONT SIZE=1><B>Projected Cash Flow</B></FONT><HR NOSHADE></TH>
</TR>
<TR VALIGN="BOTTOM">
<TH WIDTH="13%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER"><FONT SIZE=1><B>13%</B></FONT><HR NOSHADE></TH>
<TH WIDTH="13%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER"><FONT SIZE=1><B>15%</B></FONT><HR NOSHADE></TH>
<TH WIDTH="13%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER"><FONT SIZE=1><B>17%</B></FONT><HR NOSHADE></TH>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="6%" ALIGN="RIGHT"><FONT SIZE=2>2003</FONT></TD>
<TD WIDTH="13%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2>2,250</FONT></TD>
<TD WIDTH="13%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2>1,991</FONT></TD>
<TD WIDTH="13%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2>1,957</FONT></TD>
<TD WIDTH="13%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2>1,923</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="6%" ALIGN="RIGHT"><FONT SIZE=2>2004</FONT></TD>
<TD WIDTH="13%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2>2,900</FONT></TD>
<TD WIDTH="13%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2>2,271</FONT></TD>
<TD WIDTH="13%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2>2,193</FONT></TD>
<TD WIDTH="13%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2>2,118</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="6%" ALIGN="RIGHT"><FONT SIZE=2>2005</FONT></TD>
<TD WIDTH="13%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2>4,370</FONT></TD>
<TD WIDTH="13%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2>3,029</FONT></TD>
<TD WIDTH="13%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2>2,873</FONT></TD>
<TD WIDTH="13%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2>2,728</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="6%" ALIGN="RIGHT"><FONT SIZE=2>2006</FONT></TD>
<TD WIDTH="13%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2>4,680</FONT></TD>
<TD WIDTH="13%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2>2,870</FONT></TD>
<TD WIDTH="13%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2>2,676</FONT></TD>
<TD WIDTH="13%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2>2,497</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="6%" ALIGN="RIGHT"><FONT SIZE=2>2007</FONT></TD>
<TD WIDTH="13%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2>5,650</FONT></TD>
<TD WIDTH="13%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2>3,067</FONT></TD>
<TD WIDTH="13%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2>2,809</FONT></TD>
<TD WIDTH="13%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2>2,577</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="6%" ALIGN="RIGHT"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="13%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
<TD WIDTH="13%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
<TD WIDTH="13%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
<TD WIDTH="13%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN="RIGHT"><HR NOSHADE></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="6%" ALIGN="RIGHT"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="13%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=2>Total:</FONT></TD>
<TD WIDTH="13%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2>13,228</FONT></TD>
<TD WIDTH="13%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2>12,508</FONT></TD>
<TD WIDTH="13%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2>11,845</FONT></TD>
</TR>
</TABLE>
<!-- end of user-specified TAGGED TABLE -->

<!-- User-specified TAGGED TABLE -->
<TABLE WIDTH="100%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="BOTTOM">
<TH WIDTH="100%" ALIGN="CENTER"><FONT SIZE=1><B>PV of terminal Value as a multiple of 2007 FCF<BR> </B></FONT><HR NOSHADE></TH>
</TR>
</TABLE>
<!-- end of user-specified TAGGED TABLE -->

<!-- User-specified TAGGED TABLE -->
<TABLE WIDTH="100%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="BOTTOM">
<TH WIDTH="76%" ALIGN="CENTER"><FONT SIZE=1>&nbsp;</FONT><BR></TH>
<TH WIDTH="5%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="LEFT"><FONT SIZE=1>&nbsp;</FONT><BR></TH>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="76%"><FONT SIZE=2>2007 Projected CF</FONT></TD>
<TD WIDTH="5%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="5%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT"><FONT SIZE=2>5,650</FONT></TD>
</TR>
</TABLE>
<!-- end of user-specified TAGGED TABLE -->

<!-- User-specified TAGGED TABLE -->
<TABLE WIDTH="100%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="BOTTOM">
<TH WIDTH="13%" ALIGN="LEFT"><FONT SIZE=2>&nbsp;</FONT><BR></TH>
<TH WIDTH="13%"><FONT SIZE=2>&nbsp;</FONT></TH>
<TH WIDTH="3%" ALIGN="LEFT"><FONT SIZE=2>&nbsp;</FONT><BR></TH>
<TH WIDTH="13%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH COLSPAN=8 ALIGN="CENTER"><FONT SIZE=1><B>Discount Rate</B></FONT><HR NOSHADE></TH>
</TR>
<TR VALIGN="BOTTOM">
<TH WIDTH="13%" ALIGN="LEFT"><FONT SIZE=1>&nbsp;</FONT><BR></TH>
<TH WIDTH="13%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH WIDTH="3%" ALIGN="LEFT"><FONT SIZE=1>&nbsp;</FONT><BR></TH>
<TH WIDTH="13%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER"><FONT SIZE=1><B>13%</B></FONT><HR NOSHADE></TH>
<TH WIDTH="13%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER"><FONT SIZE=1><B>15%</B></FONT><HR NOSHADE></TH>
<TH WIDTH="13%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER"><FONT SIZE=1><B>17%</B></FONT><HR NOSHADE></TH>
</TR>
<TR VALIGN="BOTTOM">
<TD WIDTH="13%" VALIGN="TOP"><FONT SIZE=2>Terminal Value/2007 FCF Multiple</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" ALIGN="RIGHT"><FONT SIZE=2>2x</FONT></TD>
<TD WIDTH="13%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2>6,133</FONT></TD>
<TD WIDTH="13%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2>5,618</FONT></TD>
<TD WIDTH="13%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2>5,154</FONT></TD>
</TR>
<TR VALIGN="BOTTOM">
<TD WIDTH="13%" VALIGN="TOP"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" ALIGN="RIGHT"><FONT SIZE=2>3x</FONT></TD>
<TD WIDTH="13%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2>9,200</FONT></TD>
<TD WIDTH="13%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2>8,427</FONT></TD>
<TD WIDTH="13%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2>7,731</FONT></TD>
</TR>
<TR VALIGN="BOTTOM">
<TD WIDTH="13%" VALIGN="TOP"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" ALIGN="RIGHT"><FONT SIZE=2>4x</FONT></TD>
<TD WIDTH="13%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2>12,266</FONT></TD>
<TD WIDTH="13%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2>11,236</FONT></TD>
<TD WIDTH="13%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2>10,308</FONT></TD>
</TR>
</TABLE>
<!-- end of user-specified TAGGED TABLE -->

<!-- User-specified TAGGED TABLE -->
<TABLE WIDTH="100%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="BOTTOM">
<TH WIDTH="100%" ALIGN="CENTER"><FONT SIZE=1><B>PV of FCF over the forecast period and the Terminal Value<BR> </B></FONT><HR NOSHADE></TH>
</TR>
</TABLE>
<!-- end of user-specified TAGGED TABLE -->

<!-- User-specified TAGGED TABLE -->
<TABLE WIDTH="100%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="BOTTOM">
<TH WIDTH="13%" ALIGN="LEFT"><FONT SIZE=2>&nbsp;</FONT><BR></TH>
<TH WIDTH="13%"><FONT SIZE=2>&nbsp;</FONT></TH>
<TH WIDTH="3%" ALIGN="LEFT"><FONT SIZE=2>&nbsp;</FONT><BR></TH>
<TH WIDTH="13%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH COLSPAN=8 ALIGN="CENTER"><FONT SIZE=1><B>Discount Rate</B></FONT><HR NOSHADE></TH>
</TR>
<TR VALIGN="BOTTOM">
<TH WIDTH="13%" ALIGN="LEFT"><FONT SIZE=1>&nbsp;</FONT><BR></TH>
<TH WIDTH="13%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH WIDTH="3%" ALIGN="LEFT"><FONT SIZE=1>&nbsp;</FONT><BR></TH>
<TH WIDTH="13%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER"><FONT SIZE=1><B>13%</B></FONT><HR NOSHADE></TH>
<TH WIDTH="13%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER"><FONT SIZE=1><B>15%</B></FONT><HR NOSHADE></TH>
<TH WIDTH="13%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER"><FONT SIZE=1><B>17%</B></FONT><HR NOSHADE></TH>
</TR>
<TR VALIGN="BOTTOM">
<TD WIDTH="13%" VALIGN="TOP"><FONT SIZE=2>Terminal Value/2007 FCF Multiple</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" ALIGN="RIGHT"><FONT SIZE=2>2x</FONT></TD>
<TD WIDTH="13%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2>19,361</FONT></TD>
<TD WIDTH="13%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2>18,641</FONT></TD>
<TD WIDTH="13%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2>16,999</FONT></TD>
</TR>
<TR VALIGN="BOTTOM">
<TD WIDTH="13%" VALIGN="TOP"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" ALIGN="RIGHT"><FONT SIZE=2>3x</FONT></TD>
<TD WIDTH="13%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2>22,428</FONT></TD>
<TD WIDTH="13%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2>20,935</FONT></TD>
<TD WIDTH="13%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2>19,576</FONT></TD>
</TR>
<TR VALIGN="BOTTOM">
<TD WIDTH="13%" VALIGN="TOP"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" ALIGN="RIGHT"><FONT SIZE=2>4x</FONT></TD>
<TD WIDTH="13%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2>25,494</FONT></TD>
<TD WIDTH="13%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2>23,744</FONT></TD>
<TD WIDTH="13%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2>22,153</FONT></TD>
</TR>
<TR VALIGN="BOTTOM">
<TD WIDTH="13%" VALIGN="TOP"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD COLSPAN=4 ALIGN="RIGHT"><FONT SIZE=2><BR>
Value to Stockholders:</FONT></TD>
<TD WIDTH="13%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>$</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2><BR>
20,935</FONT></TD>
<TD WIDTH="13%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="8%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
</TR>
<TR VALIGN="BOTTOM">
<TD WIDTH="13%" VALIGN="TOP"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=4 ALIGN="RIGHT"><FONT SIZE=2>Less: Long-term Debt:</FONT></TD>
<TD WIDTH="13%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2>1,000</FONT></TD>
<TD WIDTH="13%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR VALIGN="BOTTOM">
<TD WIDTH="13%" VALIGN="TOP"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=4 ALIGN="RIGHT"><FONT SIZE=2>Value to Equity Holders:</FONT></TD>
<TD WIDTH="13%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2>19,935</FONT></TD>
<TD WIDTH="13%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
</TABLE>
<!-- end of user-specified TAGGED TABLE -->

<P ALIGN="CENTER"><FONT SIZE=2>21</FONT></P>

<HR NOSHADE>
<!-- ZEQ.=11,SEQ=26,EFW="2110420",CP="BALTEK CORP.",DN="1",CHK=684205,FOLIO='21',FILE='DISK009:[03NYC2.03NYC4672]DE4672A.;14',USER='MKEANE',CD=';9-MAY-2003;13:40' -->
<!-- THIS IS THE END OF A COMPOSITION COMPONENT -->

<P><FONT SIZE=2><A
NAME="page_dg4672_1_22"> </A> </FONT></P>

<!-- TOC_END -->
<UL>

<P><FONT SIZE=2><B> Baltek Comparable Company Analysis  </B></FONT></P>

</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Though Phoenix relies on the discounted cash flow examination as the most appropriate indication of Baltek's valuation, it also searched various sources and
databases for comparable publicly-traded companies. Phoenix identified approximately 50 potentially comparable companies in the building product (wood), advanced materials/product and chemical-fibers
sectors. Phoenix then eliminated 35 companies where the line of business was too dissimilar, the comparable company was too large or too small, or the amount of publicly available data was
insufficient. Of the remaining 15 companies, an additional nine companies were eliminated since the respective business model and/or the revenue model was significantly different. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Phoenix
compared Baltek's financial information and valuation ratios to corresponding data and ratios from six publicly-traded companies deemed to approximate Baltek's business based on
similarities in size, business and financial characteristics. While Phoenix selected six comparable companies, it noted that the product lines and composition of incomes of such companies were so
different from Baltek's that comparable company analysis would not provide a reasonably accurate guide to value Baltek and that the results of such comparison may be misleading. </FONT></P>

<UL>

<P><FONT SIZE=2><B> Assumptions and Limitations  </B></FONT></P>

</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The preparation of a fairness opinion is a complex process and not necessarily susceptible to partial analysis or summary description. Phoenix believes that its
analyses must be considered as a whole, as presented to the Special Committee and to the Board, and that selection of portions of its analyses and of the factors considered by it, without considering
all of the factors and analyses, would create a misleading view of the processes underlying the opinion. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
analyses of Phoenix are not necessarily indicative of actual values or future results, which may be significantly more or less favorable than suggested by the analyses. Analyses
relating to the value of companies do not purport to be appraisals or valuations or necessarily reflect the price at which companies may actually be sold. No company or transaction used in any
analysis for purposes of comparison is identical to Baltek or the Merger. Accordingly, an analysis of the results of the comparisons is not mathematical; rather, it involves complex considerations and
judgments about
differences in the companies to which Baltek was compared and other factors that could affect the public trading value of the companies. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For
purposes of its opinion, Phoenix relied upon and assumed the accuracy and completeness of the financial statements and other information provided to it by Baltek, or otherwise made
available to it, and did not assume responsibility for the independent verification of that information. Phoenix relied upon the assurances of the management of Baltek that the information provided to
it by Baltek was prepared on a reasonable basis in accordance with industry practice, that the financial planning data, estimates and other business outlook information reflect the best currently
available estimates and judgment of management, and that management was not aware of any information or facts that would make the information provided to Phoenix incomplete or misleading. Phoenix
expressed no opinion as to such financial planning data, estimates and other business outlook information or the assumptions on which they are based. Phoenix also assumed the Merger will be
consummated pursuant to the terms of the Merger Agreement without material modifications and without waiver by any party of any material conditions or obligations. In arriving at its opinion, Phoenix
assumed that, in the course of obtaining regulatory approvals for the Merger, if any, no restrictions, including any divestiture requirements, will be imposed that would have a material adverse effect
on the contemplated benefits of the Merger. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
arriving at its opinion, Phoenix did not perform any appraisals or valuations of any specific assets or liabilities of Baltek, nor was it furnished with any such appraisals or
valuations. Phoenix made no physical inspection of the properties or assets of Baltek. Phoenix undertook no independent analysis </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>22</FONT></P>

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<P><FONT SIZE=2>of
any owned real estate, or any pending or threatened litigation, and Phoenix's opinion made no assumption concerning, and therefore did not consider, the possible assertion of claims, outcomes or
damages arising out of any such matters. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Phoenix
expressed no opinion as to the price at which shares of Baltek's common stock have traded or may trade following announcement of the Merger or at any future time. Phoenix's
opinion addressed only the consideration to be received by stockholders of Baltek and no other term or agreement relating to the Merger. The opinion is based on information available to Phoenix and
the facts and circumstances and economic, market and other conditions as they existed and were subject to evaluation on the date of the opinion. Events occurring after that date could materially
affect the assumptions used in preparing the opinion. Phoenix has not undertaken, and is not obligated, to affirm or revise its opinion or otherwise comment on any events occurring after the date it
was given. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under
the terms of the engagement letter dated February&nbsp;20, 2003, Baltek has agreed to pay Phoenix $75,000 for rendering its opinion, whether or not the transaction is
consummated. Baltek has agreed to pay the reasonable out-of-pocket expenses of Phoenix and to indemnify Phoenix against liabilities incurred. These liabilities include
liabilities under federal securities laws in connection with the engagement of Phoenix by the Board. </FONT></P>

<P><FONT SIZE=2><B>INTERESTS OF BALTEK'S DIRECTORS AND EXECUTIVE OFFICERS IN THE MERGER  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In considering the recommendation of the Board in favor of the Merger, Baltek's stockholders should be aware that members of its Board and executive officers have
interests in the Merger that are different from, or in addition to, the interests of Baltek's stockholders. Such interests relate to or arise from, among other things: </FONT></P>

<UL>

<P><FONT SIZE=2><B> Consulting Agreements  </B></FONT></P>

</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;By the Closing Date, Alcan is expected to have entered into consulting agreements with Jacques Kohn and Margot W. Kohn, which agreements will take effect at the
effective time of the Merger and continue for a period of six months thereafter. These agreements are intended to maintain continuity of senior management in order to facilitate a smooth transition
period for Baltek after the Merger. Under the consulting agreements, the aggregate consideration for Mr.&nbsp;And Mrs.&nbsp;Kohn will be $500,000. </FONT></P>

<UL>

<P><FONT SIZE=2><B> Indemnification  </B></FONT></P>

</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Merger Agreement provides that Alcan and the surviving company will indemnify and hold harmless, and advance expenses, to the fullest extent permissible by
applicable law, to each present and former director, officer and employee of Baltek, and certain subsidiaries, against reasonable costs and expenses (including reasonable attorneys' fees), judgments,
fines, losses and claims and damages in connection with any civil, criminal or administrative claim or proceeding arising out of matters existing prior to the effective time of the Merger. </FONT></P>

<UL>

<P><FONT SIZE=2><B> Bonuses and Termination&nbsp;and Non-Competition Agreements  </B></FONT></P>

</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In recognition of the efforts of certain Baltek officers and management staff during the negotiations and due diligence, as well as the contemplated integration
and implementation, of the Merger and the associated transactions, the Board has implemented a bonus program for such officers and management staff. In the event that the Merger is consummated, Thomas
G. Preisel, Ronald Tassello, Antonio L. Diaz, Harold Gutmann and certain senior management employees will be paid bonuses of $150,000, $100,000, $100,000, $100,000 and an aggregate of $75,000,
respectively. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;After
dedicated service to Baltek for over 30&nbsp;years, Jacques Kohn, Jean J. Kohn, Henri-Armand Kohn, Margot W. Kohn and Isabelle Kohn have decided not to continue their employment
with Baltek </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>23</FONT></P>

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<P><FONT SIZE=2>upon
and after the consummation of the Merger. Accordingly, each of these individuals will enter into termination of employment and non-competition agreements with Baltek and Alcan prior
to the consummation of the Merger. In the event that the Merger is consummated and as consideration for entering into such agreements, Jacques Kohn, Jean J. Kohn, Henri-Armand Kohn, Margot W. Kohn and
Isabelle Kohn will receive severance payments of $250,000, $250,000, $500,000, $250,000 and $500,000, respectively, under the terms of these agreements. </FONT></P>

<P><FONT SIZE=2><B>RIGHTS OF DISSENTING STOCKHOLDERS  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under Delaware law, any Baltek stockholder who does not wish to accept the consideration provided in the Merger Agreement has the right to demand the appraisal
of, and to be paid the fair market value for, the stockholder's shares of Baltek's common stock. The value of Baltek's common stock for this purpose will exclude any element of value arising from the
completion of the Merger. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;It
is a condition precedent to Alcan's obligation to close the Merger that less than 5% of the outstanding shares of Baltek's common stock have exercised their rights to dissent under
Section&nbsp;262 of the DGCL. </FONT></P>

<UL>

<P><FONT SIZE=2><B> Delaware Law  </B></FONT></P>

</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The discussion of the provisions set forth below is not intended to be a complete statement of a stockholder's appraisal rights under Delaware law. Rather, it is
only a guide for a stockholder who wishes to exercise his, her or its appraisal rights, and is qualified in its entirety by reference to the full text of the relevant provisions of the DGCL, which are
attached to this proxy statement as </FONT><FONT SIZE=2><I>Annex&nbsp;D</I></FONT><FONT SIZE=2>. Stockholders intending to exercise appraisal rights pursuant to the DGCL should carefully review </FONT> <FONT SIZE=2><I>Annex&nbsp;D</I></FONT><FONT
SIZE=2>. Failure to follow precisely any of the statutory procedures for existing appraisal rights set forth in </FONT> <FONT SIZE=2><I>Annex&nbsp;D</I></FONT><FONT SIZE=2> may result in a termination or waiver of these rights. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If
the Merger is consummated, dissenting holders of Baltek's common stock who follow the procedures specified in Section&nbsp;262 of the DGCL within the appropriate time periods will
be entitled to have their shares of Baltek's common stock appraised by the Delaware Court of Chancery and to receive the "fair value" of such shares in cash as determined by such court in lieu of the
consideration that such stockholder would otherwise be entitled to receive pursuant to the Merger Agreement. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
following is a brief summary of Section&nbsp;262 of the DGCL, which sets forth the procedures for dissenting from the Merger and demanding statutory appraisal rights. Failure to
follow the procedures set forth in Section&nbsp;262 of the DGCL precisely could result in the loss of appraisal rights. This proxy statement constitutes notice to holders of Baltek's common stock
concerning the availability of appraisal rights under Section&nbsp;262 of the DGCL. A stockholder of record wishing to assert appraisal rights must hold the shares of stock on the date of making a
demand for appraisal rights with respect to such shares and must continuously hold such shares through the effective time of the Merger. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stockholders
who desire to exercise their appraisal rights must satisfy all of the conditions of Section&nbsp;262 of the DGCL. A written demand for appraisal of shares must be filed
with Baltek at its main office in Northvale, New Jersey, before the special meeting. This written demand for appraisal must be in addition to, and separate from, any vote or proxy as to the Merger.
Stockholders electing to exercise their appraisal rights must not vote "for" the Merger. Any proxy or vote against the Merger will not constitute a demand for appraisal within the meaning of
Section&nbsp;262 of the DGCL. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A
demand for appraisal must be executed by or for the stockholder of record, fully and correctly, as such stockholder's name appears on the share certificate. If the shares are owned of
record in a fiduciary capacity, such as by a trustee, guardian or custodian, this demand must be executed by or for the fiduciary. If the shares are owned by or for more than one person, as in a joint
tenancy or tenancy in common, such demand must be executed by or for all joint owners. An authorized agent, including </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>24</FONT></P>

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<BR>

<P><FONT SIZE=2>an
agent for two or more joint owners, may execute the demand for appraisal for a stockholder of record; however, the agent must identify the record owner and expressly disclose the fact that, in
exercising the demand, he is acting as agent for the record owner. A person having a beneficial interest in Baltek's common stock held of record in the name of another person, such as a broker or
nominee, must act promptly to cause the record holder to follow the steps summarized below and in a timely manner to perfect whatever appraisal rights the beneficial owners may have. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A
Baltek stockholder who elects to exercise his, her or its appraisal rights should mail or deliver his, her or its written demand to Baltek at its address at 10 Fairway Court,
P.O.&nbsp;Box 195, Northvale, New Jersey, 07647, Attention: President. In order to be effective, the written demand for appraisal must specify the stockholder's name and mailing address, and that
the stockholder is specifically demanding appraisal of his, her or its shares of Baltek's common stock. Within ten days after the effective time of the Merger, Baltek must provide notice of the
effective time of the Merger to all of its stockholders who have complied with Section&nbsp;262 of the DGCL and have not voted for the Merger. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Within
120&nbsp;days after the effective time of the Merger (but not thereafter), any stockholder who has satisfied the requirements of Section&nbsp;262 of the DGCL may deliver to
Baltek a written demand for a statement listing the aggregate number of shares not voted in favor of the Merger and with respect to which demands for appraisal have been received and the aggregate
number of holders of such shares.
Baltek, as the surviving corporation in the Merger, must mail such written statement to the stockholder no later than the later of 10&nbsp;days after the stockholder's request is received by Baltek
or 10&nbsp;days after the latest date for delivery of a demand for appraisal under Section&nbsp;262 of the DGCL. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Within
120&nbsp;days after the effective time of the Merger (but not thereafter), either Baltek or any stockholder who has complied with the required conditions of Section&nbsp;262
of the DGCL and who is otherwise entitled to appraisal rights may file&nbsp;a petition in the Delaware Court of Chancery demanding a determination of the fair value of the Baltek shares of
stockholders entitled to appraisal rights. Baltek has no present intention to file such a petition if demand for appraisal is made. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Upon
the filing of any petition by a stockholder in accordance with Section&nbsp;262 of the DGCL, service of a copy must be made upon Baltek, which must, within 20&nbsp;days after
service, file in the office of the Register in Chancery in which the petition was filed, a duly verified list containing the names and addresses of all stockholders who have demanded payment for their
shares and with whom agreements as to the value of their shares have not been reached by Baltek. If a petition is filed by Baltek, the petition must be accompanied by the verified list. The Register
in Chancery, if so ordered by the court, will give notice of the time and place fixed for the hearing of such petition by registered or certified mail to Baltek and to the stockholders shown on the
list at the addresses therein stated. Such notice will also be given by publishing a notice at least one week before the day of the hearing in a newspaper of general circulation published in the City
of Wilmington, Delaware, or such publication as the court deems advisable. The forms of the notices by mail and by publication must be approved by the court, and the costs thereof will be borne by
Baltek. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At
the hearing for the petition, the Delaware Court of Chancery will determine the Baltek's stockholders who complied with Section&nbsp;262 of the DGCL and have become entitled to
appraisal rights. The court may require the stockholders who have demanded an appraisal for their shares (and who hold stock represented by certificates) to submit their stock certificates to the
Register in Chancery for notation of the pendency of the appraisal proceedings. If any of Baltek's stockholders demanding an appraisal fails to comply with the court's instruction, the court may
dismiss his, her or its appraisal proceedings. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;After
determining which stockholders are entitled to appraisal rights, the court will appraise the shares owned by these stockholders, determining the fair value of such shares. The
determination of the court will be made exclusive of any element of value arising from the accomplishment or </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>25</FONT></P>

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<BR>

<P><FONT SIZE=2>expectation
of the Merger, together with a fair rate of interest to be paid, if any, upon the amount determined to be the fair value. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Baltek's
stockholders considering seeking appraisal of their shares should note that the fair value of their shares determined under Section&nbsp;262 of the DGCL could be more, the
same or less than the
consideration they would receive pursuant to the Merger Agreement if they did not seek appraisal of their shares. The costs of the appraisal proceeding may be determined by the court and taxed against
the parties as the court deems equitable under the circumstances. Upon application of a dissenting stockholder, the court may order that all or a portion of the expenses incurred by any dissenting
stockholder in connection with the appraisal proceeding, including reasonable attorneys' fees and the fees and expenses of experts, be charged pro rata against the value of all shares entitled to
appraisal. In the absence of a determination or assessment, each party bears his, her or its own expenses. The exchange of shares for cash pursuant to the exercise of appraisal rights will be a
taxable transaction for United States federal income tax purposes and possibly state, local and foreign income tax purposes as well. See "Certain Material United States Federal Income Tax Consequences
of the Merger" on page 28 of this proxy statement. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any
stockholder who has duly demanded an appraisal in compliance with Section&nbsp;262 of the DGCL will not, from and after the effective time of the Merger, be entitled to vote for
any purpose the shares subject to demand or to receive payment of dividends or other distributions on such shares, except for dividends or distributions payable to stockholders of record at a date
prior to the effective time of the Merger. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At
any time within 60&nbsp;days after the effective time of the Merger, any stockholder will have the right to withdraw his demand for appraisal and to accept the terms offered in the
Merger Agreement. After this period, a stockholder may withdraw his, her or its demand for appraisal and receive payment for his, her or its shares as provided in the Merger Agreement only with the
consent of Baltek. If no petition for appraisal is filed with the court within 120&nbsp;days after the effective time of the Merger, stockholders' rights to appraisal (if available) will cease.
Inasmuch as Baltek has no obligation to file such a petition, any stockholder who desires a petition to be filed is advised to file it on a timely basis. No petition timely filed in the court
demanding appraisal may be dismissed as to any stockholder without the approval of the court, which approval may be conditioned upon such terms as the court deems just. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Failure
by any Baltek stockholder to comply fully with the procedures described above and set forth in </FONT><FONT SIZE=2><I>Annex D</I></FONT><FONT SIZE=2> to this proxy statement may
result in termination of such stockholder's appraisal rights. </FONT></P>

<UL>

<P><FONT SIZE=2>STOCKHOLDERS
CONSIDERING SEEKING APPRAISAL SHOULD BE AWARE THAT THE FAIR VALUE OF THEIR SHARES AS DETERMINED UNDER SECTION 262 OF THE DGCL COULD BE MORE THAN, THE SAME AS OR LESS THAN THE MERGER
CONSIDERATION THEY WOULD RECEIVE PURSUANT TO THE MERGER PROPOSAL IF THEY DID NOT SEEK APPRAISAL OF THEIR SHARES. FAILURE TO COMPLY STRICTLY WITH ALL OF THE PROCEDURES SET FORTH IN SECTION 262 OF THE
DGCL MAY RESULT IN THE LOSS OF A STOCKHOLDER'S STATUTORY APPRAISAL RIGHTS. CONSEQUENTLY, ANY STOCKHOLDER WISHING TO EXERCISE APPRAISAL RIGHTS IS URGED TO CONSULT LEGAL COUNSEL BEFORE ATTEMPTING TO
EXERCISE SUCH RIGHTS. </FONT></P>

</UL>

<P><FONT SIZE=2><B>ACCOUNTING TREATMENT  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Merger will be accounted for as a "purchase transaction" for financial accounting purposes. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>26</FONT></P>

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<P><FONT SIZE=2><B>FORM OF THE MERGER  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subject to the terms and conditions of the Merger Agreement and in accordance with Delaware law, at the effective time of the Merger, Alcan Balcorp will merge
with and into Baltek. Baltek will survive the Merger as a wholly-owned subsidiary of Alcan. </FONT></P>

<P><FONT SIZE=2><B>MERGER CONSIDERATION  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At the effective time of the Merger, each outstanding share of Baltek's common stock, other than treasury shares and those shares held by stockholders who perfect
their appraisal or dissenters' rights (as described in "The Merger&#151;Rights of Dissenting Stockholders" on page 24 of this proxy statement), will be converted into the right to receive
$15.17 per share. As of the effective time of the Merger, all shares of Baltek's common stock will no longer be outstanding, will automatically be canceled and will cease to exist, and each holder of
a certificate representing any shares of Baltek's common stock (other than stockholders who have perfected their appraisal or dissenters' rights) will cease to have any rights as a stockholder, except
the right to receive the ratable portion of the aggregate consideration for the Merger. The aggregate consideration for the Merger was determined through arm's-length negotiations between Baltek and
Alcan. </FONT></P>

<P><FONT SIZE=2><B>CONVERSION OF SHARES; PROCEDURES FOR EXCHANGE OF CERTIFICATES  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The conversion of Baltek's common stock into the right to receive the consideration for the Merger will occur automatically at the effective time of the Merger.
As soon as reasonably practicable after the effective time of the Merger, Alcan's paying agent will send a transmittal letter to each former Baltek stockholder. The transmittal letter will contain
instructions for obtaining cash in exchange for shares of Baltek's common stock. Baltek's stockholders should not return stock certificates with the enclosed proxy. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
the event of a transfer of ownership of Baltek's common stock that is not registered in the records of Baltek's transfer agent, the cash consideration for shares of Baltek's common
stock may be paid to a person other than the person in whose name the certificate so surrendered is registered if: </FONT></P>

<UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>the
certificate is properly endorsed or otherwise is in proper form for transfer; and
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>the
person requesting such payment (a)&nbsp;pays any transfer or other taxes resulting from the payment to a person other than the registered holder of the certificate or
(b)&nbsp;establishes to Baltek, the surviving corporation in the Merger, that the tax has been paid or is not applicable. </FONT></DD></DL>
</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
cash paid upon conversion of shares of Baltek's common stock will be issued in full satisfaction of all rights relating to the shares of Baltek's common stock. </FONT></P>


<P><FONT SIZE=2><B>EFFECTIVE TIME OF THE MERGER  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Merger will become effective upon the filing of a certificate of merger with the Delaware Secretary of State or at such later time (but no later than
90&nbsp;days from the filing date) as set forth in the certificate of merger. The filing of the certificate of merger will occur as soon as practicable after satisfaction or waiver of the conditions
to the completion of the Merger described in the Merger Agreement. </FONT></P>

<P><FONT SIZE=2><B>DELISTING AND DEREGISTRATION OF BALTEK'S COMMON STOCK  </B></FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If the Merger is completed, Baltek's common stock will be delisted from the Nasdaq National Market and Baltek will cease to be a reporting company under the
Securities Exchange Act of 1934. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>27</FONT></P>

<HR NOSHADE>
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<BR>

<P><FONT SIZE=2><B>CERTAIN MATERIAL UNITED STATES FEDERAL INCOME TAX CONSEQUENCES OF THE MERGER  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following is a summary of certain material federal income tax consequences of the Merger to Baltek's stockholders whose shares of Baltek's common stock are
converted into the right to receive their respective pro-rata share of the consideration for the Merger in the Merger (including any cash amounts received by dissenting stockholders
pursuant to the exercise of dissenters' rights or appraisal rights). This discussion is based upon the provisions of the Internal Revenue Code of 1986, as amended (the "Code"), the applicable Treasury
Regulations promulgated and proposed thereunder, and published judicial authority and administrative rulings and practice. Legislative, judicial or administrative authorities or interpretations are
subject to change, possibly on a retroactive basis, at any time and a change could alter or modify the statements and conclusions set forth below. It is assumed for purposes of this discussion that
the shares of Baltek's common stock are held as "capital assets" within the meaning of Section&nbsp;1221 of the Code. This discussion does not address all aspects of federal income taxation that may
be relevant to a particular stockholder in light of such stockholder's personal investment circumstances, or those stockholders subject to special treatment under the Federal income tax laws (for
example, dealers in securities, financial institutions, mutual funds, life insurance companies, tax-exempt organizations or foreign persons) or to stockholders who acquired their shares of
common stock through the exercise of employee stock options, pursuant to an employee stock purchase plan, exercise of warrants or other compensation arrangements, or to stockholders who hold their
shares as part of an integrated investment such as a hedge, straddle or other risk reduction transaction, or who hold shares that are qualified small business stock for purposes of Section&nbsp;1202
of the Code. In addition, the discussion does not address any aspect of foreign, state or local income taxation or any other form of taxation that may be applicable to a stockholder. Accordingly, all
of Baltek's stockholders are urged to consult their own tax advisors as to the specific tax consequences to them of the Merger, including the applicable federal, state, local and foreign tax
consequences. </FONT></P>

<UL>

<P><FONT SIZE=2><B> Consequences of the Merger to Baltek's Stockholders  </B></FONT></P>

<P><FONT SIZE=2><I> General  </I></FONT></P>

</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The receipt of the consideration for the Merger (and any cash amounts received by dissenting stockholders pursuant to the exercise of dissenters' rights or
appraisal rights) will be a taxable transaction for federal income tax purposes (and also may be a taxable transaction under applicable state, local and other income tax laws). In general, for federal
income tax purposes, a stockholder will recognize gain or loss equal to the difference between his, her or its adjusted tax basis in the shares of Baltek's common stock converted to cash in the Merger
(or pursuant to the exercise of dissenters' rights) and the amount of cash received therefor. Such gain or loss will be capital gain or loss and will be long-term gain or loss, if, on the
date of the Merger, the shares of Baltek's common stock were held for more than one year. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Generally,
capital losses are deductible only against capital gains and are not available to offset ordinary income; however, individuals are allowed to offset a limited amount of net
capital losses against ordinary income. </FONT></P>

<UL>

<P><FONT SIZE=2><I> Dissenters' Rights  </I></FONT></P>

</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under specified circumstances, holders of Baltek's common stock may be entitled to dissenters' or appraisal rights in connection with the Merger. See "Rights of
Dissenting Stockholders" on page 24 of this proxy statement. If dissenters' or appraisal rights are available and a holder of Baltek's common stock receives cash pursuant to the exercise of such
rights, such holder generally will recognize a gain or loss, measured by the difference between the cash received and such holder's tax basis in such </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>28</FONT></P>

<HR NOSHADE>
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<P><FONT SIZE=2>common
stock. Holders of Baltek's common stock who exercise dissenters' or appraisal rights are urged to consult their own tax advisors. </FONT></P>

<UL>

<P><FONT SIZE=2><B> Federal Backup Tax Withholding  </B></FONT></P>

</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under the Code, a stockholder may be subject, under certain circumstances, to "backup withholding" at a rate of 30% with respect to payments made in connection
with the Merger. Backup withholding is not an additional tax but merely an advance payment, which may be refunded to the extent it results in an overpayment of tax. Backup withholding generally
applies if the stockholder: </FONT></P>

<UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>fails
to furnish his or her social security number or its taxpayer identification number ("TIN");
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>furnishes
an incorrect social security number or TIN;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>fails
properly to report interest or dividends; or
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>under
certain circumstances, fails to provide a certified statement, signed under penalties of perjury, that the social security number or TIN provided is his, her or its
correct number and that he, she or it is not subject to backup withholding. </FONT></DD></DL>
</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To
prevent federal backup income tax withholding with respect to cash received pursuant to the Merger, a stockholder must either provide the exchange agent with a correct social security
number or TIN and certify whether such stockholder is subject to backup withholding of federal income tax by completing the substitute Form&nbsp;W-9 included in the letter of transmittal
or establish a basis for exemption from backup withholding. Certain persons generally are exempt from backup withholding, including corporations, financial institutions and certain foreign
individuals. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Certain
penalties apply for failure to furnish correct information and for failure to include the reportable payments in income. Each stockholder should consult with his, her or its own
tax advisor as to his, her or its qualifications for exemption from withholding and the procedure for obtaining such exemption. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;THE
FEDERAL INCOME TAX DISCUSSION SET FORTH ABOVE IS INCLUDED FOR GENERAL INFORMATION PURPOSES ONLY. BALTEK'S STOCKHOLDERS SHOULD CONSULT THEIR OWN TAX ADVISORS TO DETERMINE THE FEDERAL,
STATE, LOCAL AND FOREIGN TAX CONSEQUENCES OF THE MERGER TO THEM IN VIEW OF THEIR OWN PARTICULAR CIRCUMSTANCES. </FONT></P>

<P><FONT SIZE=2><B>REGULATORY MATTERS  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Although all business combination transactions are subject to U.S. antitrust laws and also may be subject to international antitrust laws, filings with the
Department of Justice and the Federal Trade Commission prior to closing of the Merger are not required. However, the Department of Justice or the Federal Trade Commission, as well as a state or
private person, may challenge the Merger at any time before or after its completion. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>29</FONT></P>

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<A NAME="page_dg4672_1_30"> </A>
<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="dg4672_the_merger_agreement"> </A>
<A NAME="toc_dg4672_1"> </A>
<BR></FONT><FONT SIZE=2><B>THE MERGER AGREEMENT    <BR>    </B></FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following description summarizes the material provisions of the Merger Agreement. Stockholders should read carefully the Merger Agreement, which is attached
as </FONT><FONT SIZE=2><I>Annex A</I></FONT><FONT SIZE=2> to this proxy statement. </FONT></P>

<P><FONT SIZE=2><B>REPRESENTATIONS AND WARRANTIES  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Merger Agreement contains customary representations and warranties made by Baltek relating to, among other things: </FONT></P>

<UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>corporate
organization and similar corporate matters;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>Baltek's
capital structure;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>authorization,
execution, delivery, performance and enforceability of the Merger Agreement and other closing documents; receipt of fairness opinion by Baltek from its
financial advisor;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>required
consents, registrations, approvals, permits and authorizations of governmental authorities relating to the Merger Agreement;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>no
violation of organizational documents or material agreements as a result of the Merger Agreement or completion of the Merger;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>the
status and accuracy of information provided in connection with Baltek's existing contracts and the validity and effectiveness of such contracts;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>documents
filed by Baltek with the SEC, the accuracy of the financial statements and other information contained in such documents and the disclosure of long term
indebtedness of Baltek;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>absence
of certain changes or events since December&nbsp;31, 2001 that would have a Company Material Adverse Effect;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>outstanding
and pending litigation involving Baltek;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>absence
of liabilities other than as reflected in financial statements;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>matters
relating to employee benefits matters, compliance of compensation and benefit plans with ERISA, absence of certain ERISA liabilities and compliance with certain
contribution requirements;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>compliance
with laws and permits;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>satisfaction
of actions necessary to render Delaware takeover statutes inapplicable to the Merger;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>environmental
matters that might have a material adverse effect on Baltek;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>taxes,
including filing of tax returns and payment of taxes by Baltek and absence of certain tax audits, examinations or proceedings;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>labor
matters, including status of labor relations and practices of Baltek;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>insurance
policies of Baltek;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>intellectual
property of Baltek;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>brokerage
and finder's fees; and
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>the
required stockholder vote of Baltek's stockholders to approve the transaction. </FONT></DD></DL>
</UL>
<P ALIGN="CENTER"><FONT SIZE=2>30</FONT></P>

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<A NAME="page_dg4672_1_31"> </A>
<UL>
<UL>
</UL>
</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Merger Agreement also contains customary representations and warranties made by Alcan and Alcan Balcorp relating to, among other things: </FONT></P>

<UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>corporate
organization and similar corporate matters;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>authorization,
execution, delivery, performance and enforceability of the Merger Agreement;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>required
consents, registrations, approvals, permits and authorizations of governmental authorities relating to the Merger Agreement;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>no
violation of organizational documents or material agreements as a result of the Merger Agreement or completion of the Merger;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>absence
of beneficial ownership of shares of Baltek's common stock; and
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>availability
of funds to consummate the Merger and the other transactions contemplated by the Merger Agreement. </FONT></DD></DL>
</UL>

<P><FONT SIZE=2><B>CONDITIONS TO THE COMPLETION OF THE MERGER  </B></FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each of Baltek, Alcan and Alcan Balcorp is obligated to complete the Merger only if the following conditions are met or waived by such party at or prior to the
effective time of the Merger: </FONT></P>

<UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>the
Merger and the Merger Agreement must be approved by and adopted by the requisite vote of Baltek's stockholders;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>all
governmental approvals and consents necessary to effect the transactions are obtained, unless the failure to obtain the approvals and consent would not have a Company
Material Adverse Effect; and
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>no
court or government entity having jurisdiction over any of the parties has issued an order that prohibits the consummation of the Merger. </FONT></DD></DL>
</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Alcan
and Alcan Balcorp are obligated to complete the Merger only if certain conditions are met by Baltek or waived by Alcan or Alcan Balcorp at or prior to the effective time of the
Merger. These include that: </FONT></P>

<UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>the
representations and warranties of Baltek set forth in the Merger Agreement are true and correct when made and will be true and correct in all material respects on and as
of the Closing Date, as if made on and as of such date, except where a representation or warranty speaks as of an earlier date, and Alcan has received a certificate signed on behalf of Baltek by the
President and Chief Executive Officer of Baltek to such effect;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>Alcan
has access to the business of Baltek and its subsidiaries to permit it to conduct a due diligence investigation to confirm to its satisfaction the representations and
warranties of Baltek made in the Merger Agreement;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>the
holders of no more than 5% of Baltek's outstanding shares have perfected appraisal rights under Delaware law;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>all
of the directors of Baltek have submitted their resignations and Baltek has performed in all material respects each of its obligations contained in the Merger Agreement
required to be performed on or prior to the Closing Date;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>Baltek
has divested all of its interests in its subsidiaries conducting its shrimp business;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>each
of Jacques Kohn, Jean J. Kohn, Margot W. Kohn, Henri-Armand Kohn and Isabelle Kohn has executed and delivered termination of employment and non-competition
agreements on terms satisfactory to Alcan; </FONT></DD></DL>
</UL>
<P ALIGN="CENTER"><FONT SIZE=2>31</FONT></P>

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<UL>
<UL>
</UL>
</UL>
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<P><FONT SIZE=2><A
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<UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>each
of Jacques Kohn and Margot W. Kohn has executed and delivered consulting agreements on terms satisfactory to Alcan;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>the
Voting Agreement between Alcan and the Voting Agreement Stockholders remains in full force and effect; and
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>Baltek
has obtained certain written consents pursuant to certain material contracts with third parties on terms satisfactory to Alcan. </FONT></DD></DL>
</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Baltek
is obligated to complete the Merger only if the following additional conditions are met by Alcan Balcorp and Alcan or waived by Baltek at or prior to the effective time of the
Merger: </FONT></P>

<UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>the
representations and warranties of Alcan and Alcan Balcorp set forth in the Merger Agreement are true and correct when made and will be true and correct in all material
respects on and as of the Closing Date as if made on and as of such date, except where a representation or warranty expressly speaks as of an earlier date, and Baltek has received certificates signed
on behalf of Alcan by an officer of Alcan and by Alcan Balcorp by the Chief Executive Officer of Alcan Balcorp to such effect; and
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>Alcan
and Alcan Balcorp have performed in all material respects all material obligations contained in the Merger Agreement required to be performed on or prior to the
Closing Date. </FONT></DD></DL>
</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Baltek
can provide no assurance that all of the conditions precedent to the Merger will be satisfied or waived by the party permitted to do so. Baltek cannot at this point determine
whether it would resolicit proxies in the event that it decides to waive any of the items listed above. This decision would depend
on the facts and circumstances leading to Baltek's decision to complete the Merger and whether Baltek believes there has been a material change in the terms of the Merger and the effect of such change
on Baltek's stockholders. In making its determination, Baltek would consider, among other factors, the reasons for the waiver, the effect of the waiver on the terms of the Merger, whether the
requirement being waived was necessary in order to make the Merger fair to Baltek's stockholders from a financial point of view, the availability of alternative transactions and the prospects of
Baltek as an independent entity. If Baltek determines that a waiver of a condition would materially change the terms of the Merger, it will resolicit proxies. </FONT></P>

<P><FONT SIZE=2><B>CONDUCT OF BUSINESS BY BALTEK PENDING THE MERGER  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During the period from the date of the Merger Agreement through the effective time of the Merger, Baltek has agreed as to itself and its subsidiaries that, except
as otherwise contemplated in the Merger Agreement or other instruments relating to the Merger, and unless Alcan otherwise approves in writing (which approval will not be unreasonably withheld or
delayed), Baltek will: </FONT></P>

<UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>operate
its business and that of its subsidiaries only in the ordinary course of business and, to the extent consistent with such operation, use its best efforts to
(i)&nbsp;preserve the present business organization intact and (ii)&nbsp;preserve all beneficial business relationships with all customers, suppliers, employees and others having business dealings
with its business and that of its subsidiaries;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>maintain
its material assets in such condition and repair consistent with past practice and maintain upon all of its material assets, in full force and effect, insurance
comparable in amount and coverage to that in effect on the date of the Merger Agreement;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>not
issue, sell, pledge, dispose of or encumber any capital stock owned by it in any of its subsidiaries; amend its certificate of incorporation or bylaws; split, combine or
reclassify its outstanding shares of capital stock; declare, set aside or pay any dividend other than dividends from its direct or indirect wholly-owned subsidiaries or repurchase, redeem or otherwise
acquire, or permit any of its subsidiaries to purchase or otherwise acquire, any shares of its capital stock or any securities convertible into or exchangeable or exercisable for any shares of its
capital stock; </FONT></DD></DL>
</UL>
<P ALIGN="CENTER"><FONT SIZE=2>32</FONT></P>

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<UL>
<UL>
</UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>not
issue, sell, pledge, dispose of or encumber any shares of, or securities convertible into or exchangeable or exercisable for, or options, warrants, calls, commitments or
rights of any kind to acquire, any shares of its capital stock or any outstanding bonds, debentures, notes or other obligations the holders of which have the right to vote with Baltek's stockholders;
grant or sell any option or right to purchase the assets of Baltek, except regarding non-material assets in the ordinary course of business consistent with past practice; or subject any of
its assets to any further material lien, charge, mortgage, pledge, security interest or similar encumbrance, other than (i)&nbsp;as disclosed in the financial statements included in any of Baltek's
registration statements, reports, proxy statements or information statements prepared by Baltek since December&nbsp;31, 2001, and (ii)&nbsp;in the ordinary course of business consistent with past
practice;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>not
terminate, establish, adopt, enter into, make any new grants or awards under, amend or otherwise modify, any compensation and benefit plans, or pay or promise to pay any
bonus, profit-sharing or special compensation to any of its current or former employees, or those of any of its subsidiaries, or make any increase in the compensation payable or to become payable to
any of such employees, except (i)&nbsp;for changes that are required by applicable law, (ii)&nbsp;to satisfy obligations under the terms of any agreement or plan in effect as of the date of the
Merger Agreement, (iii)&nbsp;for increases in compensation that are made in the ordinary course of business consistent with past practice (which shall include normal, periodic performance reviews
and related compensation and benefit increases) and (iv)&nbsp;for employment arrangements for, or grants of awards to, newly hired employees in the ordinary course of business;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>except
in the ordinary course of business not enter into or terminate any of its contracts, the performance of which involves consideration in excess of $100,000, other than
distribution, purchase or supply agreements entered into in the ordinary course of business, or make any change to any such contract;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>not
make any tax election or permit any insurance policy naming it as a beneficiary or loss-payable payee to be canceled or terminated without prior notice to
Alcan, except in the ordinary and usual course of business;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>not
settle or compromise any material claims or litigation or, except in the ordinary and usual course of business, waive, release or assign any material rights or claims;
and
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>not
authorize or enter into an agreement to do any of the foregoing. </FONT></DD></DL>
</UL>
<BR>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding
the foregoing, Baltek is not prohibited from: </FONT></P>

<UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>making,
accepting or settling inter-company advances to, from or with any or all of its subsidiaries;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>causing
any of its subsidiaries to pay or distribute to Baltek all cash, money market instruments, bank deposits, certificates of deposit, other cash equivalents, marketable
securities and other investment securities then owned or held by such subsidiary; or
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>engaging
in any other transaction incident to the normal cash management procedures of Baltek and its subsidiaries in the ordinary course of business. </FONT></DD></DL>
</UL>

<P><FONT SIZE=2><B>LIMITATION ON CONSIDERING OTHER ACQUISITION PROPOSALS  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Baltek has agreed that neither it nor any of its subsidiaries nor any of their respective officers or directors will, and that it will direct and use its best
efforts to cause their respective employees, agents and representatives not to (i)&nbsp;solicit, initiate, encourage or otherwise facilitate any Acquisition Proposal, or (ii)&nbsp;participate in
any negotiations concerning, or provide any confidential information or data to or have any discussions with any person relating to, an Acquisition Proposal, or otherwise facilitate any effort to make
or implement an Acquisition Proposal. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>33</FONT></P>

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<A NAME="page_di4672_1_34"> </A>
<BR>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Nevertheless,
the Merger Agreement does not prevent Baltek, its directors, officers, agents or other representatives from (i)&nbsp;providing information subject to a confidentiality
agreement in response to an unsolicited bona fide written Acquisition Proposal and engaging in any negotiations or discussions in connection with such Acquisition Proposal or (ii)&nbsp;recommending
such an Acquisition Proposal to Baltek's stockholders if the Board determines in good faith (after consultation with outside legal counsel) that its failure to take such action would be inconsistent
with the fiduciary duties of the directors and the Board determines in good faith (after consultation with its financial advisor), such Acquisition Proposal is a Superior Proposal. </FONT></P>

<P><FONT SIZE=2><B>TERMINATION  </B></FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Merger Agreement may be terminated: </FONT></P>

<UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>by
mutual written consent of both Baltek and Alcan;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>by
either Baltek or Alcan if (i)&nbsp;the Merger is not consummated by August&nbsp;30, 2003; provided that the right to terminate shall not be available to any party who
breached in any material respect its material obligations under the Merger Agreement that contributed to the failure of the Merger to be consummated; (ii)&nbsp;the Merger and the Merger Agreement
are not approved by and adopted by the requisite vote of Baltek's stockholders; or (iii)&nbsp;a court or government entity having jurisdiction over the parties has issued a final order prohibiting
the consummation of the Merger;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>by
Baltek, if Alcan or Alcan Balcorp has materially breached any representation, warranty, covenant or agreement in the Merger Agreement which is not curable or, if curable,
is not cured within thirty days after the giving of notice by Baltek; provided that such breach results in (i)&nbsp;the failure of a representation or warranty of Alcan or Alcan Balcorp to be true
and correct as of the Closing Date or (ii)&nbsp;the failure of Alcan or Alcan Balcorp to perform in all material respects all material obligations required to be performed by them under the Merger
Agreement on or prior to the Closing Date;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>by
Baltek if its Board authorizes it to enter into a binding written agreement concerning a transaction determined to be a Superior Proposal (as defined on page 11 of this
proxy statement); provided, however, Baltek may not terminate the Merger Agreement pursuant to this provision unless (i)&nbsp;it has delivered to Alcan a written notice of its intent to enter into
an agreement to effect such a transaction, (ii)&nbsp;Alcan does not make an offer within three business days following receipt of such written notice by Baltek that the Board in good faith
determines, after consultation with its financial advisors, is at least as favorable, from a financial point of view, to Baltek's stockholders as the Superior Proposal and (iii)&nbsp;upon
termination Baltek pays to Alcan the required termination fee;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>by
Alcan, if the Board withdraws or adversely modifies its approval or recommendation of the Merger Agreement or after an Acquisition Proposal (as defined on page 11 of this
proxy statement) has been made and the Board fails to reconfirm its recommendation of the Merger Agreement within fifteen business days after requested in writing by Alcan to do so; or
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>by
Alcan, if Baltek has materially breached any representation, warranty, covenant or agreement in the Merger Agreement which is not curable or, if curable, is not cured
within thirty days after the giving of notice by Alcan; provided that such breach results in (i)&nbsp;the failure of a representation or warranty of Baltek to be true and correct as of the Closing
Date or (ii)&nbsp;the failure of Baltek to perform in all material respects all material obligations required to be performed by it under the Merger Agreement on or prior to the Closing Date. </FONT></DD></DL>
</UL>
<P ALIGN="CENTER"><FONT SIZE=2>34</FONT></P>

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<A NAME="page_di4672_1_35"> </A>
<UL>
<UL>
</UL>
</UL>

<P><FONT SIZE=2><B>EXPENSES AND TERMINATION FEES  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Merger Agreement provides that regardless of whether the Merger is consummated, all costs, fees and expenses incurred by the parties in connection with the
Merger shall be borne by the party incurring such costs, fees and expenses. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;However,
under certain circumstances relating to the termination of the Merger Agreement, Baltek may be required to pay Alcan a termination fee equal to $1.2&nbsp;million in
immediately available funds. If Alcan or Alcan Balcorp commences and prevails in an action against Baltek to obtain payment of such termination fee, Baltek will also be required to pay the reasonable
costs and expenses (including reasonable attorneys' fees) incurred by Alcan and Alcan Balcorp in connection with such an action. The circumstances under which this termination fee would be due are if: </FONT></P>

<UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>Alcan
terminates the Merger Agreement due to Baltek's inability to obtain the required approval of the stockholders of Baltek for the consummation of the Merger;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>Baltek
terminates the Merger Agreement because it has received a Superior Proposal and intends to enter into a binding agreement with the party making the Superior Proposal
and Alcan does not make, within three business days of receipt (not counting the day of receipt) of Baltek's written notification of its intention to enter into a binding agreement for a Superior
Proposal, an offer that the Board determines, in good faith after consultation with its financial advisors, is at least as favorable, from a financial point of view, to Baltek's stockholders as the
Superior Proposal; or
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>Alcan
terminates the Merger Agreement because the Board has withdrawn or adversely modified its approval or recommendation of the Merger Agreement or, after an Acquisition
Proposal
(as opposed to a Superior Proposal) has been made, the Board has failed to reconfirm its recommendation of the Merger Agreement within fifteen business days after a written request by Alcan to do so. </FONT></DD></DL>
</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Furthermore,
Baltek, as the surviving corporation, will pay all charges and expenses related to the exchange of, and payment for, shares pursuant to the Merger Agreement, including,
without limitation, those charges and expenses of the paying agent, and any transfer taxes, conveyance taxes and sales taxes, if any, payable in connection with the consummation of the Merger. </FONT></P>

<P><FONT SIZE=2><B>AMENDMENT AND WAIVER OF THE MERGER AGREEMENT  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subject to the provisions of applicable law, at any time prior to when Baltek has filed a certificate of merger with the Delaware Secretary of State, Alcan, Alcan
Balcorp and Baltek may modify or amend the Merger Agreement, by written agreement, executed and delivered by duly authorized officers of Alcan and Baltek. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
conditions to each of the obligations of Alcan, Alcan Balcorp and Baltek to consummate the Merger may be waived by Alcan, Alcan Balcorp and Baltek, in whole or in part, subject to
applicable law. </FONT></P>

<P><FONT SIZE=2><B>INDEMNIFICATION  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Merger Agreement provides that Alcan and Baltek, as the surviving corporation, will indemnify and hold harmless (and Alcan and Baltek will also advance
expenses as incurred to the fullest extent permitted under applicable law provided the person to whom expenses are advanced, provides any undertaking required under applicable law to repay such
advances if it is ultimately determined that such person is not entitled to indemnification), each present and former director, officer, and employee of Baltek, Baltek's current subsidiaries and
certain former subsidiaries of Baltek, against any reasonable costs or expenses (including reasonable attorneys' fees), judgments, fines, losses, claims, damages or liabilities incurred in connection
with any claim, action, suit, proceeding or investigation, whether civil, criminal, administrative or investigative, arising out of or pertaining to matters existing or occurring at or prior to the
date that Baltek files the certificate of merger with the Secretary of State of the State Delaware, including the Merger and the other transactions contemplated by the Merger Agreement. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>35</FONT></P>

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<A NAME="page_di4672_1_36"> </A>
<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="di4672_voting_agreement"> </A>
<A NAME="toc_di4672_1"> </A>
<BR></FONT><FONT SIZE=2><B>VOTING AGREEMENT    <BR>    </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Simultaneously with the execution and delivery of the Merger Agreement, Alcan Balcorp and Alcan entered into the Voting Agreement with the Voting Agreement
Stockholders. On the Record Date, the Voting Agreement Stockholders were the holders of record of approximately 46%, collectively, of Baltek's outstanding common stock. </FONT></P>


<P><FONT SIZE=2><B>VOTING  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Voting Agreement Stockholders agreed, among other things, to vote their shares of Baltek's common stock in favor of the adoption of the Merger Agreement, the
approval of the terms thereof and the Merger at the special meeting of stockholders (or at any adjournment thereof) or in any other circumstances upon which a vote, consent or other approval with
respect to the Merger and the Merger Agreement is sought. The Voting Agreement Stockholders also agreed to vote against, and not consent to, approval of any Acquisition Proposal or any acquisition
agreement or similar agreement related to an Acquisition Proposal, or any change in the persons who constitute the Board that is not approved in advance by at least a majority of the persons who were
Baltek directors as of the date of the Merger Agreement. Such Voting Agreement Stockholders further agreed to vote against, and not consent to, any other action or proposal involving Baltek or any of
its subsidiaries that would in any manner prevent, impede, interfere with, delay, postpone or adversely affect the Merger, the Merger Agreement or any of the other transactions contemplated by the
Merger Agreement. In order to secure these obligations, each of the Voting Agreement Stockholders granted to Alcan and its designees an irrevocable proxy and irrevocably appointed Alcan and its
designee such Voting Agreement Stockholder's attorney and proxy to vote or, if applicable, to give consent with regard to all of the respective Voting Agreement Stockholder's shares of Baltek's common
stock subject to the Voting Agreement. </FONT></P>


<P><FONT SIZE=2><B>RESTRICTIONS ON TRANSFER AND OTHER VOTING ARRANGEMENTS  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each Voting Agreement Stockholder also agreed not to sell, transfer, pledge, assign or otherwise dispose of any of his or its shares of Baltek's common stock
subject to the Voting Agreement without the prior written consent of Alcan, except as otherwise permitted by certain limited terms and conditions of the Voting Agreement. </FONT></P>

<P><FONT SIZE=2><B>NO SOLICITATION  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Voting Agreement Stockholders also agreed not to directly or indirectly solicit, initiate, encourage, participate in any discussions or negotiations, furnish
confidential information to any person or
otherwise facilitate any inquiries in connection with the making of any Acquisition Proposal. Such an obligation also extended to a Voting Agreement Stockholder's agents and representatives.
Nevertheless, the Voting Agreement does not preclude such Voting Agreement Stockholders or any of their respective agents or representatives from taking any actions permitted under the Merger
Agreement. </FONT></P>

<P><FONT SIZE=2><B>TERMINATION  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The obligations of the Voting Agreement Stockholders will terminate on the earlier to occur of the consummation of the Merger and the termination of the Merger
Agreement in accordance with the terms thereof, except that the restrictions on the sale or other transfer of the shares of Baltek's common stock subject to the Voting Agreement will terminate on the
termination of the Merger Agreement pursuant to its terms. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>36</FONT></P>

<HR NOSHADE>
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<A NAME="page_di4672_1_37"> </A>
<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="di4672_security_ownership_of_certain___sec02525"> </A>
<A NAME="toc_di4672_2"> </A>
<BR></FONT><FONT SIZE=2><B>SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT    <BR>    </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table sets forth certain information regarding the ownership of Baltek's common stock as
of&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;, 2003 by each person known to Baltek to
be the beneficial owner, at that date, of more than five percent of the outstanding Baltek's common stock, by each director, and by all directors and officers of Baltek as a group: </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="di4672_beneficial_ownership(1)"> </A>
<A NAME="toc_di4672_3"> </A>
<BR></FONT><FONT SIZE=2><B>BENEFICIAL OWNERSHIP(1)    <BR>    </B></FONT></P>

<!-- User-specified TAGGED TABLE -->
<TABLE WIDTH="81%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="BOTTOM">
<TH WIDTH="75%" ALIGN="LEFT"><FONT SIZE=1><B>Name and Address of Beneficial Owner(2)<BR> </B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH WIDTH="12%" ALIGN="CENTER"><FONT SIZE=1><B>Number of<BR>
Shares</B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH WIDTH="7%" ALIGN="CENTER"><FONT SIZE=1><B>Percent of<BR>
Class</B></FONT><HR NOSHADE></TH>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="75%"><FONT SIZE=2>Jacques Kohn(a)</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>1,072,007</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>46.1</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="75%"><FONT SIZE=2>Jean J. Kohn(a)</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>1,072,007</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>46.1</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="75%"><FONT SIZE=2>Bernard Kohn(a)</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>1,072,007</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>46.1</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="75%"><FONT SIZE=2>Bernard Kohn Revocable Living Trust(a)</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>1,072,007</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>46.1</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="75%"><FONT SIZE=2>Bernard Kohn Irrevocable Descendants Trust(a)</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>1,072,007</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>46.1</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="75%"><FONT SIZE=2>Alcan Inc.(b)</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>1,072,007</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>46.1</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="75%"><FONT SIZE=2>Henri-Armand Kohn</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>11,963</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>*</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="75%"><FONT SIZE=2>Reich &amp; Tang Asset Management L.P.(c)</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>189,800</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>8.1</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="75%"><FONT SIZE=2>Benson J. Zeikowitz</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>200</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>*</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="75%"><FONT SIZE=2>Bernard J. Wald</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>-0-</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>-0-</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="75%"><FONT SIZE=2>William F. Nicklin</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>-0-</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>-0-</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="75%"><FONT SIZE=2>Margot W. Kohn(d)</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>-0-</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>-0-</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="75%"><FONT SIZE=2>All directors and officers as a group (11 persons)</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>1,083,970</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>46.6</FONT></TD>
</TR>
</TABLE>
<!-- end of user-specified TAGGED TABLE -->

<HR NOSHADE ALIGN="LEFT" WIDTH="120">
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>*</FONT></DT><DD><FONT SIZE=2>Less
than 1%
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(a)</FONT></DT><DD><FONT SIZE=2>Consists
of 469,565 shares of common stock directly held by each of Jacques Kohn and Jean J. Kohn, 85,820 shares of common stock directly held by the Bernard Kohn Revocable Living
Trust ("Living Trust") and 47,057 shares of common stock directly held by the Bernard Kohn Irrevocable Descendants Trust ("Descendants Trust," and together with the Living Trust, the "Bernard Kohn
Trusts") (all such shares of common stock being collectively referred to as the "Voting Agreement Shares"). Bernard Kohn is the sole trustee of the Living Trust, having sole voting and dispositive
powers over the shares held by the Living Trust. Jacques Kohn and Bernard Kohn are co-trustees of the Descendants Trust, having shared dispositive powers over the shares held by the
Descendants Trust. The Voting Agreement Shares are subject to an agreement, dated March&nbsp;5, 2001 (the "March&nbsp;5, 2001 Agreement"), pursuant to which Jacques, Jean J. and Bernard Kohn
agreed to vote their shares on all matters in accordance with a majority vote of the three individuals. In addition, Jacques and Jean J. Kohn have agreed under the March&nbsp;5, 2001 Agreement that
if they propose to sell any of their shares to a third party, Bernard Kohn may elect to participate in such sale on a pro rata basis. The Voting Agreement Stockholders entered into the Voting
Agreement with Alcan in connection with the Merger whereby, among other things, each Voting Agreement Stockholder agreed to vote, and granted Alcan an irrevocable proxy to vote, all of his or its
shares of common stock to approve the Merger Agreement and the Merger. Other than with respect to its interest in the Voting Agreement, Alcan disclaims beneficial ownership of such shares. Except as
to the shares directly held by each of the Voting Agreement Stockholders, each of the Voting Agreement Stockholders disclaim beneficial ownership of the Voting Agreement Shares within the meaning of
Rule&nbsp;13d-3 under the Securities Exchange Act of 1934. </FONT></DD></DL>
<P ALIGN="CENTER"><FONT SIZE=2>37</FONT></P>

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<A NAME="page_di4672_1_38"> </A>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>(b)</FONT></DT><DD><FONT SIZE=2>Consists
of the Voting Agreement Shares. Pursuant to the proxy contained in the Voting Agreement, Alcan possesses shared power to direct the vote of the Voting Agreement Shares, and
Alcan thus may be deemed to beneficially own such Voting Agreement Shares. Alcan does not directly hold any outstanding shares of Baltek's common stock. Alcan disclaims beneficial ownership of the
Voting Agreement Shares within the meaning of Rule&nbsp;13d-3 under the Securities Exchange Act of 1934.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(c)</FONT></DT><DD><FONT SIZE=2>Successor
to New England Investment Companies L.P. as the owner of the shares listed.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(d)</FONT></DT><DD><FONT SIZE=2>Margot
W. Kohn disclaims any beneficial ownership of the shares directly held by her husband, Jacques Kohn, within the meaning of Rule&nbsp;13d-3 under the Securities
Exchange Act of 1934.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(1)</FONT></DT><DD><FONT SIZE=2>This
table is based upon information supplied by officers, directors and principal stockholders and Schedules 13D and 13G filed with the SEC. Unless otherwise indicated in the
footnotes to this table and subject to community property laws where applicable, Baltek believes that each of the stockholders named in this table has sole voting and investment power with respect to
the shares indicated as beneficially owned. Applicable percentages are based on 2,323,944 shares outstanding as of the Record Date.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(2)</FONT></DT><DD><FONT SIZE=2>The
addresses for the named beneficial holders are: for Alcan&nbsp;Inc., 1188 Sherbrooke Street West, Montreal, Quebec H3A&nbsp;3G2 Canada; for the Bernard Kohn Revocable Living
Trust and Bernard Kohn Irrevocable Descendants Trust, c/o Herzfeld&nbsp;&amp; Rubin, P.C., 40 Wall Street, New York, NY 10005; for Reich&nbsp;&amp; Tang Asset Management L.P., 600 Fifth Avenue, New York,
NY 10020 and for all of the other named individuals, c/o Baltek Corporation, 10 Fairway Court, P.O.&nbsp;Box 195, Northvale, NJ 07647. </FONT></DD></DL>
<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="di4672_stockholder_proposals"> </A>
<A NAME="toc_di4672_4"> </A>
<BR></FONT><FONT SIZE=2><B>STOCKHOLDER PROPOSALS    <BR>    </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Baltek will hold a 2003 annual meeting of stockholders only if the Merger is not completed. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
deadline for submitting a stockholder proposal for inclusion in Baltek's proxy statement and form of proxy for Baltek's 2003 annual meeting of stockholders pursuant to
Rule&nbsp;14a-8 of the Securities Exchange Act of 1934 was February&nbsp;22, 2003, as currently scheduled. Stockholders wishing to submit proposals or director nominations that are not
to be included in such proxy statement and proxy must have done so no later than the close of business on the 90<SUP>th</SUP> day nor earlier than the close of business on the 120<SUP>th</SUP>
day prior to the first anniversary of the preceding year's annual meeting of stockholders (no earlier than January&nbsp;23, 2003 and no later than February&nbsp;22, 2003 as currently scheduled);
provided, however, that in the event that the date of the annual meeting of stockholders is advanced more than 30&nbsp;days prior to or delayed by more than 30&nbsp;days after the anniversary of
the preceding year's annual meeting of stockholders, notice by the stockholder to be timely must be so delivered not earlier than the close of business on the 120<SUP>th</SUP> day prior to such
annual meeting of stockholders and not later than the close of business on the later of the 90<SUP>th</SUP> day prior to such annual meeting of stockholders or the 10<SUP>th</SUP> day following
the day on which public announcement of the date of such meeting is first made. Stockholders wishing to submit any such proposals are also advised to review Baltek's bylaws, which contain additional
requirements with respect to advance notice of stockholder proposals and director nominations. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>38</FONT></P>

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<A NAME="page_di4672_1_39"> </A>
<BR>
<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="di4672_where_you_can_find_more_information"> </A>
<A NAME="toc_di4672_5"> </A>
<BR></FONT><FONT SIZE=2><B>WHERE YOU CAN FIND MORE INFORMATION    <BR>    </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Baltek and Alcan file annual, quarterly and special reports, proxy statements and other information with the SEC. You may read and copy any reports, statements or
other information that Baltek and Alcan file with the SEC at the SEC's public reference room at the following location: </FONT></P>

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<TABLE WIDTH="100%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="BOTTOM">
<TH WIDTH="21%" ALIGN="CENTER"><FONT SIZE=1>&nbsp;</FONT><BR></TH>
<TH WIDTH="3%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH WIDTH="76%" ALIGN="LEFT"><FONT SIZE=1>&nbsp;</FONT><BR></TH>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="21%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="76%"><FONT SIZE=2>Public Reference Room</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="21%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="76%"><FONT SIZE=2>450 Fifth Street, N.W., Room 1024</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="21%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="76%"><FONT SIZE=2>Washington, D.C. 20549</FONT></TD>
</TR>
</TABLE>
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<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Please
call the Securities and Exchange Commission at 1-800-SEC-0330 for further information on the public reference room. These SEC filings are also
available to the public from commercial document retrieval services and at the Internet world wide web site maintained by the SEC at "http://www.sec.gov." Reports, proxy statements and other
information concerning Baltek may also be inspected at the offices of The Nasdaq Stock Market at 1735 K Street, N.W., Washington, D.C. 20006. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Alcan
has supplied all information contained in this proxy statement relating to Alcan and Alcan Balcorp and Baltek has supplied all such information relating to Baltek. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Baltek's
stockholders should not send in their Baltek stock certificates until they receive the transmittal materials from the paying agent. Baltek's stockholders of record who have
further questions about their share certificates or the exchange of their Baltek's common stock for cash should call the paying agent. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;You
should rely only on the information contained in this proxy statement including the annexes attached hereto. Baltek has not authorized anyone to provide you with information that is
different from what is contained in this proxy statement. This proxy statement is dated&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;. You should not
assume that the information contained in this proxy statement is accurate as of
any date other than that date. Neither the mailing of this proxy statement to stockholders nor the issuance of cash in the Merger creates any implication to the contrary. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="di4672_other_matters"> </A>
<A NAME="toc_di4672_6"> </A>
<BR></FONT><FONT SIZE=2><B>OTHER MATTERS    <BR>    </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There is no other business to be brought before the Special Meeting. </FONT></P>

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<TABLE WIDTH="100%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="BOTTOM">
<TH WIDTH="40%" ALIGN="CENTER"><FONT SIZE=1>&nbsp;</FONT><BR></TH>
<TH WIDTH="3%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH WIDTH="58%" ALIGN="LEFT"><FONT SIZE=1>&nbsp;</FONT><BR></TH>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="40%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="58%"><FONT SIZE=2>By Order of the Board of Directors</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="40%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="58%"><BR><HR NOSHADE><FONT SIZE=2> JACQUES KOHN<BR>
President and Chief Executive Officer</FONT></TD>
</TR>
<TR VALIGN="BOTTOM">
<TD WIDTH="40%"><FONT SIZE=2><BR>
Northvale, New Jersey<BR>
<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, 2003</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="58%" VALIGN="TOP"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
</TR>
</TABLE>
<!-- end of user-specified TAGGED TABLE -->

<P ALIGN="CENTER"><FONT SIZE=2>39</FONT></P>

<HR NOSHADE>
<!-- ZEQ.=8,SEQ=44,EFW="2110420",CP="BALTEK CORP.",DN="1",CHK=821254,FOLIO='39',FILE='DISK009:[03NYC2.03NYC4672]DI4672A.;22',USER='JLAWRENA',CD=';9-MAY-2003;13:50' -->
<!-- THIS IS THE END OF A COMPOSITION COMPONENT -->
<!-- TOC_END -->
<P ALIGN="RIGHT"><FONT SIZE=2><B>ANNEX A  </B></FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="la4672_agreement_and_plan_of_merger_a__agr03860"> </A>
<A NAME="toc_la4672_1"> </A>
<BR></FONT><FONT SIZE=2><B>AGREEMENT AND PLAN OF MERGER<BR>  <BR>    Among<BR>  <BR>    BALTEK CORPORATION,<BR>  <BR>    ALCAN&nbsp;INC.<BR>  <BR>    and<BR>  <BR>    ALCAN BALCORP,&nbsp;INC.<BR>  <BR>    Dated as of 5 March, 2003    <BR>
</B></FONT></P>

<HR NOSHADE>
<!-- ZEQ.=1,SEQ=45,EFW="2110420",CP="BALTEK CORP.",DN="1",CHK=845279,FOLIO='blank',FILE='DISK009:[03NYC2.03NYC4672]LA4672A.;4',USER='CNAPOLE',CD=';8-MAY-2003;19:11' -->
<BR>
<!-- THIS IS THE END OF A COMPOSITION COMPONENT -->
<P ALIGN="RIGHT"><FONT SIZE=2><A
NAME="page_lc4672_1_1"> </A> </FONT></P>

<!-- TOC_END -->
<P ALIGN="RIGHT"><FONT SIZE=2><B>ANNEX A  </B></FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="lc4672_table_of_contents"> </A>
<A NAME="toc_lc4672_1"> </A></FONT> <FONT SIZE=2><B>TABLE OF CONTENTS    <BR>    </B></FONT></P>

<!-- User-specified TAGGED TABLE -->
<TABLE WIDTH="80%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="BOTTOM">
<TH WIDTH="3%" ALIGN="LEFT"><FONT SIZE=2>&nbsp;</FONT><BR></TH>
<TH WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TH>
<TH WIDTH="6%" ALIGN="LEFT"><FONT SIZE=2>&nbsp;</FONT><BR></TH>
<TH WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TH>
<TH WIDTH="4%" ALIGN="LEFT"><FONT SIZE=2>&nbsp;</FONT><BR></TH>
<TH WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TH>
<TH WIDTH="73%" ALIGN="LEFT"><FONT SIZE=2>&nbsp;</FONT><BR></TH>
<TH WIDTH="3%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH WIDTH="6%" ALIGN="CENTER"><FONT SIZE=1><B>Page No.</B></FONT><HR NOSHADE></TH>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="3%"><FONT SIZE=2>1.</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=5><FONT SIZE=2>Definitions and Exhibits</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>1</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>1.1</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=3><FONT SIZE=2>Definitions</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>1</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>1.2</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=3><FONT SIZE=2>Exhibits</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>4</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>1.3</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=3><FONT SIZE=2>Currency</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>4</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="3%"><FONT SIZE=2><BR>
2.</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD COLSPAN=5><FONT SIZE=2><BR>
The Merger</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2><BR>
4</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>2.1</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=3><FONT SIZE=2>The Merger</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>4</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>2.2</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=3><FONT SIZE=2>Closing</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>4</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>2.3</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=3><FONT SIZE=2>Merger Effective Time</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>4</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="3%"><FONT SIZE=2><BR>
3.</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD COLSPAN=5><FONT SIZE=2><BR>
The Surviving Company</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2><BR>
4</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>3.1</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=3><FONT SIZE=2>Certificate of Incorporation of the Surviving Company</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>4</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>3.2</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=3><FONT SIZE=2>Bylaws of the Surviving Company</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>5</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>3.3</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=3><FONT SIZE=2>Directors of the Surviving Company</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>5</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>3.4</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=3><FONT SIZE=2>Officers of the Surviving Company</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>5</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="3%"><FONT SIZE=2><BR>
4.</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD COLSPAN=5><FONT SIZE=2><BR>
Effect of the Merger on Capital Stock; Exchange of Certificates</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2><BR>
5</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>4.1</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=3><FONT SIZE=2>Effect of the Merger</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>5</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2>(a)</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="73%"><FONT SIZE=2>Merger Consideration</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>5</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2>(b)</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="73%"><FONT SIZE=2>Merger Sub</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>5</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>4.2</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=3><FONT SIZE=2>Exchange of, and Payment for, Shares</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>5</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2>(a)</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="73%"><FONT SIZE=2>Paying Agent</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>5</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2>(b)</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="73%"><FONT SIZE=2>Exchange Procedures</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>6</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2>(c)</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="73%"><FONT SIZE=2>Transfers</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>6</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2>(d)</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="73%"><FONT SIZE=2>Termination of Exchange Fund</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>6</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2>(e)</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="73%"><FONT SIZE=2>Lost, Stolen or Destroyed Certificates</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>7</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>4.3</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=3><FONT SIZE=2>Dissenters' Rights</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>7</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="3%"><FONT SIZE=2><BR>
5.</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD COLSPAN=5><FONT SIZE=2><BR>
Representations and Warranties</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2><BR>
7</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>5.1</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=3><FONT SIZE=2>Representations and Warranties of the Company</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>7</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2>(a)</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="73%"><FONT SIZE=2>Organization, Good Standing and Qualification</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>7</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2>(b)</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="73%"><FONT SIZE=2>Capital Structure</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>7</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2>(c)</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="73%"><FONT SIZE=2>Corporate Authority; Approval and Fairness</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>8</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2>(d)</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="73%"><FONT SIZE=2>Governmental Filings; No Violations</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>9</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2>(e)</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="73%"><FONT SIZE=2>Company Contracts</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>9</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2>(f)</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="73%"><FONT SIZE=2>Company Reports; Financial Statements</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>9</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2>(g)</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="73%"><FONT SIZE=2>Absence of Certain Changes</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>10</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2>(h)</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="73%"><FONT SIZE=2>(Litigation and Liabilities</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>11</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2>(i)</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="73%"><FONT SIZE=2>Employee Benefits</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>11</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2>(j)</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="73%"><FONT SIZE=2>Compliance with Laws; Permits</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>12</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2>(k)</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="73%"><FONT SIZE=2>Takeover Statutes</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>12</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2>(l)</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="73%"><FONT SIZE=2>Environmental Matters</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>13</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2>(m)</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="73%"><FONT SIZE=2>Taxes</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>13</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2>(n)</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="73%"><FONT SIZE=2>Labor Matters</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>13</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2>(o)</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="73%"><FONT SIZE=2>Insurance</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>13</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2>(p)</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="73%"><FONT SIZE=2>Intellectual Property</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>14</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2>(q)</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="73%"><FONT SIZE=2>Brokers and Finders</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>14</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2>(r)</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="73%"><FONT SIZE=2>Vote Required</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>14</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>5.2</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=3><FONT SIZE=2>Representations and Warranties of Parent and Merger Sub</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>15</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2>(a)</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="73%"><FONT SIZE=2>Organization, Good Standing and Qualification</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>15</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2>(b)</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="73%"><FONT SIZE=2>Corporate Authority</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>15</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2>(c)</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="73%"><FONT SIZE=2>Governmental Filings; No Violations</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>15</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="73%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
</TABLE>
<!-- insert table folio -->
<BR>
<P ALIGN="CENTER"><FONT SIZE=2>i</FONT></P>

<HR NOSHADE>
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<A NAME="page_lc4672_1_2"> </A>
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<TABLE WIDTH="80%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2>(d)</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="73%"><FONT SIZE=2>Ownership of Shares</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>16</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2>(e)</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="73%"><FONT SIZE=2>Funds</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>16</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="3%"><FONT SIZE=2><BR>
6.</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD COLSPAN=5><FONT SIZE=2><BR>
Covenants</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2><BR>
16</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>6.1</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=3><FONT SIZE=2>Interim Operations</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>16</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>6.2</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=3><FONT SIZE=2>Acquisition Proposals</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>18</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>6.3</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=3><FONT SIZE=2>Stockholder Approvals</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>18</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>6.4</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=3><FONT SIZE=2>Stockholder Meeting and Proxy Statement</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>18</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>6.5</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=3><FONT SIZE=2>Filings; Other Actions; Notification</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>19</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>6.6</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=3><FONT SIZE=2>Access</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>20</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>6.7</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=3><FONT SIZE=2>Stock Exchange De-listing</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>20</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>6.8</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=3><FONT SIZE=2>Publicity</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>20</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>6.9</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=3><FONT SIZE=2>Expenses</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>20</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>6.10</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=3><FONT SIZE=2>Indemnification</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>21</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>6.11</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=3><FONT SIZE=2>Takeover Statute</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>21</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="3%"><FONT SIZE=2><BR>
7.</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD COLSPAN=5><FONT SIZE=2><BR>
Conditions</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2><BR>
21</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>7.1</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=3><FONT SIZE=2>Conditions to Each Party's Obligation to Effect the Merger</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>21</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2>(a)</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="73%"><FONT SIZE=2>Stockholder Approvals</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>21</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2>(b)</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="73%"><FONT SIZE=2>Regulatory Consents</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>21</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2>(c)</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="73%"><FONT SIZE=2>No Orders</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>22</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>7.2</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=3><FONT SIZE=2>Conditions to Obligations of Parent and Merger Sub</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>22</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2>(a)</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="73%"><FONT SIZE=2>Representations and Warranties</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>22</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2>(b)</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="73%"><FONT SIZE=2>Confirmatory Due Diligence</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>22</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2>(c)</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="73%"><FONT SIZE=2>Dissents</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>22</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2>(d)</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="73%"><FONT SIZE=2>Resignations</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>22</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2>(e)</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="73%"><FONT SIZE=2>Performance of Obligations of the Company</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>22</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2>(f)</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="73%"><FONT SIZE=2>Divestiture of Shrimp Business</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>22</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2>(g)</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="73%"><FONT SIZE=2>Additional Agreements</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>22</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>7.3</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=3><FONT SIZE=2>Conditions to Obligation of the Company</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>23</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2>(a)</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="73%"><FONT SIZE=2>Representations and Warranties</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>23</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2>(b)</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="73%"><FONT SIZE=2>Performance of Obligations of Parent and Merger Sub</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>23</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="3%"><FONT SIZE=2><BR>
8.</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD COLSPAN=5><FONT SIZE=2><BR>
Termination</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2><BR>
23</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>8.1</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=3><FONT SIZE=2>Termination by Mutual Consent</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>23</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>8.2</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=3><FONT SIZE=2>Termination by Either Parent or the Company</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>23</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>8.3</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=3><FONT SIZE=2>Termination by the Company</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>23</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>8.4</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=3><FONT SIZE=2>Termination by Parent</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>24</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>8.5</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=3><FONT SIZE=2>Effect of Termination and Abandonment</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>24</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="3%"><FONT SIZE=2><BR>
9.</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD COLSPAN=5><FONT SIZE=2><BR>
Miscellaneous and General</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2><BR>
25</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>9.1</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=3><FONT SIZE=2>Survival</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>25</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>9.2</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=3><FONT SIZE=2>Modification or Amendment</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>25</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>9.3</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=3><FONT SIZE=2>Waiver of Conditions</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>25</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>9.4</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=3><FONT SIZE=2>Counterparts</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>25</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>9.5</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=3><FONT SIZE=2>Governing Law and Venue; Waiver of Jury Trial</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>25</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>9.6</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=3><FONT SIZE=2>Notices</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>26</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>9.7</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=3><FONT SIZE=2>Entire Agreement</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>26</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>9.8</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=3><FONT SIZE=2>No Third Party Beneficiaries</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>26</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>9.9</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=3><FONT SIZE=2>Obligations of Parent and of the Company</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>27</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>9.10</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=3><FONT SIZE=2>Severability</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>27</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>9.11</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=3><FONT SIZE=2>Interpretation</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>27</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>9.12</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=3><FONT SIZE=2>Assignment</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>27</FONT></TD>
</TR>
</TABLE>
<!-- end of user-specified TAGGED TABLE -->

<P ALIGN="CENTER"><FONT SIZE=2>ii</FONT></P>

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<P ALIGN="RIGHT"><FONT SIZE=2><A
NAME="page_le4672_1_1"> </A> </FONT></P>

<!-- TOC_END -->
<P ALIGN="RIGHT"><FONT SIZE=2><B>ANNEX A  </B></FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="le4672_agreement_and_plan_of_merger"> </A>
<A NAME="toc_le4672_1"> </A>
<BR></FONT><FONT SIZE=2><B>AGREEMENT AND PLAN OF MERGER    <BR>    </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;AGREEMENT AND PLAN OF MERGER (hereinafter called this "Agreement"), dated as of 5 March&nbsp;2003, among BALTEK CORPORATION, a Delaware corporation (the
"Company"), ALCAN&nbsp;INC., a Canadian company ("Parent") and ALCAN BALCORP,&nbsp;INC., a Delaware corporation and a wholly owned subsidiary of Parent ("Merger Sub"). </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="le4672_recitals"> </A>
<A NAME="toc_le4672_2"> </A>
<BR></FONT><FONT SIZE=2><B>RECITALS    <BR>    </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, the Boards of Directors of each of the Company, Parent and Merger Sub have approved this Agreement, and the Boards of Directors of each of the Company,
Parent and Merger Sub have approved the merger of the Company with and into the Merger Sub upon the terms and subject to the conditions set forth in this Agreement (the "Merger"); and </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS,
the Company, Parent and Merger Sub desire to make certain representations, warranties, covenants and agreements in connection with the Merger and the other transactions
contemplated by this Agreement; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NOW,
THEREFORE, in consideration of the premises, and the representations, warranties, covenants and agreements contained herein, the parties hereto agree as follows: </FONT></P>

<P><FONT SIZE=2><B>1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Definitions and Exhibits  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1</FONT><FONT
SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;Definitions</B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As
used in this Agreement, the following terms shall have the meanings set forth below: </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"Acquisition
Proposal" shall have the meaning set forth in Section&nbsp;6.2; </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"Agreement"
shall mean this Agreement and Plan of Merger, including any exhibits hereto; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"Audit
Date" shall mean December&nbsp;31, 2001; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"Bankruptcy
and Equity Exception" shall have the meaning set forth in Section&nbsp;5.1(c)(i); </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"Closing"
shall have the meaning set forth in Section&nbsp;2.2; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"Closing
Date" shall mean the time and date at which the Closing takes place pursuant to Section&nbsp;2.2; </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"Code"
shall mean the Internal Revenue Code of 1986, as amended; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"Company"
shall mean Baltek Corporation; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"Company
Certificates" shall have the meaning set forth in Section&nbsp;4.1(a); </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"Company
Closing Documents" shall have the meaning set forth in Section&nbsp;5.1(c)(i); </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"Company
Common Share" shall have the meaning set forth in Section&nbsp;4.1(a); </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"Company
Contracts" shall have the meaning set forth in Section&nbsp;5.1(e); </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"Company
Disclosure Letter" shall have the meaning set forth in Section&nbsp;5.1; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"Company
Intellectual Property Rights" shall have the meaning set forth in Section&nbsp;5.1(p); </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"Company
Material Adverse Effect" means an effect, change, development or circumstance that, individually or in the aggregate is or is reasonably likely to be material and adverse with
respect to the </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>1</FONT></P>

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<A NAME="page_le4672_1_2"> </A>
<BR>

<P><FONT SIZE=2>financial
condition, results of operations, assets, business or prospects of the Company and its Subsidiaries taken as a whole; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"Company
Reports" shall have the meaning set forth in Section&nbsp;5.1(f); </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"Company
Requisite Vote" shall have the meaning set forth in Section&nbsp;5.1(c); </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"Company
Voting Debt" shall have the meaning set forth in Section&nbsp;5.1(b); </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"Compensation
and Benefit Plans" shall have the meaning set forth in Section&nbsp;5.1(i); </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"Consulting
Agreements" shall have the meaning set forth in Section&nbsp;7.2(g)(ii); </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"Contract"
shall have the meaning set forth in Section&nbsp;5.1(d); </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"Costs"
shall have the meaning set forth in Section&nbsp;6.10(a); </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"DGCL"
shall mean the Delaware General Corporation Law, as amended; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"Dissenting
Stockholders" shall mean stockholders exercising appraisal rights pursuant to Section&nbsp;262 of the DGCL; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"Employees"
shall have the meaning set forth in Section&nbsp;5.1(i); </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"Encumbrance"
shall have the meaning set forth in Section&nbsp;6.1(a); </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"Environmental
Law" means any applicable law, regulation, code, license, permit, order, decree or injunction from any Governmental Entity governing (A)&nbsp;the protection of the
environment, (including air, water, soil and natural resources) or (B)&nbsp;the use, storage, handling, release or disposal of Hazardous Substances, in each case as presently in effect; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"ERISA"
shall mean the Employee Retirement Income Security Act of 1974, as amended; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"ERISA
Affiliate" shall have the meaning set forth in Section&nbsp;5.1(i); </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"GAAP"
shall mean U.S. generally accepted accounting principles consistently applied; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"Governmental
Consents" shall have the meaning set forth in Section&nbsp;7.1(b); </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"Governmental
Entity" shall mean any governmental or regulatory authority, agency, commission or other entity, domestic or foreign; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"Government
Antitrust Entity" shall have the meaning set forth in Section&nbsp;6.5(e); </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"Hazardous
Substance" means any substance presently listed, defined, designated or classified as hazardous, toxic or radioactive under any applicable Environmental Law including
petroleum and any derivative or by-products thereof; </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"Indemnified
Parties" shall have the meaning set forth in Section&nbsp;6.10(a); </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"IRS"
shall mean the Internal Revenue Service; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"Knowledge
of the Company" shall mean the actual knowledge of (i)&nbsp;an officer of the Company or (ii)&nbsp;any individual party to a Voting Agreement, in each case after
reasonable inquiry; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"Laws"
shall have the meaning set forth in Section&nbsp;5.1(j); </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"Merger"
shall mean the merger of Merger Sub with and into the Company such that the separate existence of Merger Sub shall thereupon cease; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"Merger
Certificate" shall have the meaning set forth in Section&nbsp;2.3; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"Merger
Consideration" shall have the meaning set forth in Section&nbsp;4.1(a); </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>2</FONT></P>

<HR NOSHADE>
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<A NAME="page_le4672_1_3"> </A>
<BR>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"Merger
Effective Time" shall have the meaning set forth in Section&nbsp;2.3; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"Merger
Sub" shall have the meaning set forth in the recitals hereto; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"Merger
Sub Common Share" shall have the meaning set forth in Section&nbsp;4.1(b); </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"Order"
shall have the meaning set forth in Section&nbsp;7.1(c); </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"Parent"
shall mean Alcan&nbsp;Inc.; </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"Parent
Companies" shall mean Parent, Merger Sub and any direct or indirect subsidiaries of Parent; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"Paying
Agent" shall have the meaning set forth in Section&nbsp;4.2(a); </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"Pension
Plan" shall mean an "employee pension benefit plan" within the meaning of Section&nbsp;3(2) of ERISA and that is intended to be qualified under Section&nbsp;401(a) of the
Code; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"Person"
shall mean any individual, corporation (including not-for-profit), general or limited partnership, limited liability company, joint venture, estate,
trust, association, organization, Government Entity or other entity of any kind or nature; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"Plans"
shall have the meaning set forth in Section&nbsp;5.1(i); </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"Proxy
Statement" shall have the meaning set forth in Section&nbsp;6.4; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"Representatives"
shall have the meaning set forth in Section&nbsp;6.6; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"SEC"
shall mean the U.S. Securities and Exchange Commission; </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"Shrimp
Business" shall mean all aspects of the Company's shrimp business, including but not limited to all the assets, liabilities, obligations, interests, employees and interest in its
subsidiaries Marines C.A. and Recorcholis S.A.; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"Shrimp
Business Divestiture" shall mean the transfer of all of the shares of Marines C.A. and Recorcholis S.A. pursuant to an and in accordance with the terms of the agreement dated 11
December&nbsp;2002, as amended thereafter; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"Stockholder
Approval" shall have the meaning set forth in Section&nbsp;6.3; </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"Subsidiary"
shall mean a "subsidiary" as defined in Rule&nbsp;1-02 of Regulation&nbsp;S-X of the SEC; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"Superior
Proposal" shall have the meaning set forth in Section&nbsp;6.2; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"Surviving
Company" shall have the meaning set forth in Section&nbsp;2.1; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"Surviving
Company Bylaws" shall have the meaning set forth in Section&nbsp;3.2; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"Surviving
Company Charter" shall have the meaning set forth in Section&nbsp;3.1; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"Takeover
Statute" shall have the meaning set forth in Section&nbsp;5.1(k); </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"Tax"
(including, with correlative meaning, the terms "Taxes", and Taxable") includes all federal, state, local and foreign income, profits, franchise, gross receipts, environmental,
customs duty, capital stock, severances, stamp, payroll, sales, employment, unemployment, disability, use, property, withholding, excise, production, value added, occupancy and other taxes, duties or
assessments of any nature whatsoever, together with all interest, penalties and additions imposed with respect to such amounts and any interest in respect of such penalties and additions; </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"Tax
Return" includes all returns and reports (including elections, declarations, disclosures, schedules, estimates and information returns) required to be supplied to a Tax authority
relating to Taxes; </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>3</FONT></P>

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<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"Termination
and Non-Compete Agreements" shall have the meaning set forth in Section&nbsp;7.2(g)(i); </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"Termination
Date" shall have the meaning set forth in Section&nbsp;8.2; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"Third-Party
Intellectual Property Rights" shall have the meaning set forth in Section&nbsp;5.1(p). </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2</FONT><FONT
SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;Exhibits</B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
following are the exhibits annexed to and incorporated into this Agreement by this reference and deemed to be a part hereof: </FONT></P>

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<DIV ALIGN="CENTER"><TABLE WIDTH="66%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="TOP">
<TD WIDTH="23%"><FONT SIZE=2>Exhibit 5.1:</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="74%"><FONT SIZE=2>Company Disclosure Letter</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="23%"><FONT SIZE=2>Exhibit 6.10(a)</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="74%"><FONT SIZE=2>Indemnified Parties</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="23%"><FONT SIZE=2>Exhibit 7.2(g)(i):</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="74%"><FONT SIZE=2>Termination of Employment</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="23%"><FONT SIZE=2>Exhibit 7.2(g)(ii):</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="74%"><FONT SIZE=2>Consulting Agreements</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="23%"><FONT SIZE=2>Exhibit 7.2(g)(iii)</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="74%"><FONT SIZE=2>Voting Agreements</FONT></TD>
</TR>
</TABLE></DIV>
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<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.3</FONT><FONT
SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;Currency</B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unless
otherwise specified, any reference to dollars or other currency in this Agreement denotes a reference to lawful currency of the United States of America. </FONT></P>

<P><FONT SIZE=2><B>2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Merger  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1</FONT><FONT
SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;The Merger</B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;</FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Upon
the terms and subject to the conditions set forth in this Agreement, at the Merger Effective Time, Merger Sub shall be merged with and into the Company and the separate corporate
existence of Merger Sub shall thereupon cease. The Company shall be the surviving corporation in the Merger (sometimes hereinafter referred to as the "Surviving Company"), and the separate corporate
existence
of Merger Sub with all its rights, privileges, immunities, powers and franchises shall continue unaffected by the Merger, except as set forth in Section&nbsp;3. The Merger shall have the effects
specified in the Delaware General Corporation Law, as amended ("DGCL"). </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2</FONT><FONT
SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;Closing</B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;</FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
closing of the Merger (the "Closing") shall take place (i)&nbsp;at the offices of Sullivan&nbsp;&amp; Cromwell, 125 Broad Street, New York, New York at 9:00&nbsp;A.M. on the second
business day following the day on which the last to be satisfied or waived of the conditions set forth in Section&nbsp;7 (other than those conditions that by their nature are to be satisfied at the
Closing, but subject to the satisfaction or waiver of those conditions) shall be satisfied or waived in accordance with this Agreement or (ii)&nbsp;at such other place and time and/or on such other
date as the Company and Parent may agree in writing. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3</FONT><FONT
SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;Merger Effective Time</B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;</FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As
soon as practicable following the Closing, the Company will cause a certificate of merger (the "Merger Certificate") to be executed, acknowledged and filed with the Secretary of State
of the State of Delaware as provided in Section&nbsp;251 of the DGCL. The Merger shall become effective at the time when the Merger Certificate has been duly filed with the Secretary of State of the
State of Delaware (the "Merger Effective Time") or at such other time (not later than 90&nbsp;days after the date of filing) as may be set forth in the Merger Certificate. </FONT></P>


<P><FONT SIZE=2><B>3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Surviving Company  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1</FONT><FONT
SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;Certificate of Incorporation of the Surviving Company</B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At
the Merger Effective Time the certificate of incorporation of the Surviving Company (the "Surviving Company Charter") shall be amended in its entirety to read as the certificate of </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>4</FONT></P>

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<P><FONT SIZE=2>incorporation
of Merger Sub as in effect immediately prior to the Merger Effective Time until duly amended as provided therein or by applicable law; provided that the certificate of incorporation
shall provide that the Surviving Corporation shall be named "Baltek Corporation". </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2</FONT><FONT
SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;Bylaws of the Surviving Company</B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;The bylaws of Merger Sub in effect at the Merger Effective Time shall be the
bylaws of the Surviving Company (the "Surviving Company Bylaws"), until thereafter amended as provided therein or by applicable law. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3</FONT><FONT
SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;Directors of the Surviving Company</B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
directors of Merger Sub at the Merger Effective Time shall, from and after the Merger Effective Time, be the directors of the Surviving Company until their successors have been duly
elected or appointed and qualified or until their earlier death, resignation or removal in accordance with the Surviving Company Charter and the Surviving Company Bylaws. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.4</FONT><FONT
SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;Officers of the Surviving Company</B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;</FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
officers of the Merger Sub at the Merger Effective Time shall, from and after the Merger Effective Time, be the officers of the Surviving Company until their successors have been
duly elected or appointed and qualified or until their earlier death, resignation or removal in accordance with the Surviving Company Charter and the Surviving Company Bylaws. </FONT></P>

<P><FONT SIZE=2><B>4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Effect of the Merger on Capital Stock; Exchange of Certificates  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1</FONT><FONT
SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;Effect of the Merger</B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At
the Merger Effective Time, as a result of the Merger and without any action on the part of the holder of any capital stock of the Company: </FONT></P>

<UL>
<UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>(a)</FONT></DT><DD><FONT SIZE=2>Merger
Consideration </FONT></DD></DL>
</UL>
</UL>
<UL>
<UL>
<UL>

<P><FONT SIZE=2>Each
share of Common Stock, par value $1.00 per share, of the Company (each, a "Company Common Share") issued and outstanding immediately prior to the Merger Effective Time (other than Company Shares
owned by Dissenting Stockholders) shall be converted into the right to receive, without interest, an amount in cash (the "Merger Consideration") equal to $15.17 per Company Common Share. All such
Company Common Shares, by virtue of the Merger and without any action on the part of the holders thereof, shall no longer be outstanding and shall be canceled and retired and shall cease to exist, and
each holder of a certificate representing any such Company Common Shares (the "Company Certificates") shall thereafter cease to have any rights with respect to such Company Common Shares, except the
right to receive the Merger Consideration for such Company Common Shares upon the surrender of such Company Certificate in accordance with Section&nbsp;4.2 or the right, if any, to receive payment
from the Surviving Company of the "fair value" of such Company Common Shares as determined in accordance with Section&nbsp;262 of the DGCL. </FONT></P>

</UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>(b)</FONT></DT><DD><FONT SIZE=2>Merger
Sub </FONT></DD></DL>
</UL>
<UL>
<UL>

<P><FONT SIZE=2>Each
share of Common Stock, par value $0.001 per share, of Merger Sub (each, a "Merger Sub Common Share") issued and outstanding immediately prior to the Merger Effective Time shall, by virtue of the
Merger and without any action on the part of Merger Sub or the holders of such shares, be converted into and become one validly issued, fully-paid and outstanding share of common stock of
the Surviving Corporation. </FONT></P>

</UL>
</UL>
</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2</FONT><FONT
SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;Exchange of, and Payment for, Shares</B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;</FONT></P>

<UL>
<UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>(a)</FONT></DT><DD><FONT SIZE=2>Paying
Agent </FONT></DD></DL>
</UL>
</UL>
<P ALIGN="CENTER"><FONT SIZE=2>5</FONT></P>

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<P><FONT SIZE=2>Prior
to the Merger Effective Time, Parent shall deposit or cause to be deposited with a paying agent selected prior thereto by Parent (the "Paying Agent"), amounts sufficient in the aggregate to
provide all funds necessary for the Paying Agent to make payments pursuant to Section&nbsp;4.1(a) to holders of Company Common Shares issued and outstanding immediately prior to the Merger Effective
Time (it being understood that any and all interest or other income earned on funds held by the Paying Agent shall be for the account of Parent). </FONT></P>

</UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>(b)</FONT></DT><DD><FONT SIZE=2>Exchange
Procedures
<BR><BR></FONT>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>(i)</FONT></DT><DD><FONT SIZE=2>As
soon as reasonably practicable after the Merger Effective Time, the Surviving Company shall cause to be mailed to each Person who was, at the Merger Effective Time, a
holder of record of issued and outstanding Company Common Shares (i)&nbsp;a letter of transmittal specifying that delivery shall be effected, and the risk of loss and title to each Company
Certificate shall pass, only upon delivery of such Company Certificate (or affidavits of loss in lieu thereof) to the Paying Agent, such letter of transmittal to be in such form and have such other
provisions as Parent and the Company may reasonably agree, and (ii)&nbsp;instructions for use in effecting the surrender of Company Certificates. Upon surrender to the Paying Agent of any Company
Certificate, together with such letter of transmittal, duly executed and completed in accordance with the instructions thereto, the Surviving Company shall promptly cause to be paid to the Person(s)
entitled thereto a check in the amount to which such Person(s) are entitled pursuant to Section&nbsp;4.2(a), after giving effect to any required tax withholdings. No interest will be paid or will
accrue on the amount payable upon the surrender of any Company Certificate.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(ii)</FONT></DT><DD><FONT SIZE=2>If
payment is to be made to a Person other than the registered holder of the Certificate surrendered, it shall be a condition of such payment that the Certificate so
surrendered shall be properly endorsed or otherwise in proper form for transfer and that the Person requesting such payment shall pay any transfer or other taxes required by reason of the payment to a
person other than the registered holder of the Certificate surrendered or establish to the satisfaction of the Surviving Company, or to the satisfaction of the Paying Agent, that such tax has been
paid or is not applicable.
<BR><BR></FONT></DD></DL>
</DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(c)</FONT></DT><DD><FONT SIZE=2>Transfers
</FONT></DD></DL>
</UL>
</UL>
<UL>
<UL>
<UL>

<P><FONT SIZE=2>After
the Merger Effective Time, there shall be no transfers on the stock transfer books of the Company of the Company Common Shares that were outstanding immediately prior to the Merger Effective
Time. </FONT></P>

</UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>(d)</FONT></DT><DD><FONT SIZE=2>Termination
of Exchange Fund
<BR><BR></FONT>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>(i)</FONT></DT><DD><FONT SIZE=2>One
hundred and eighty days following the Merger Effective Time, the Surviving Company shall be entitled to cause the Paying Agent to deliver to it any funds (including
any interest received with respect thereto) made available to the Paying Agent in respect of the payments to be made pursuant to Section&nbsp;4.2(a) which have not been disbursed to holders of
Company Certificates on the Merger Effective Time, and thereafter such holders shall be entitled to look to the Surviving Company or Parent only as general creditors thereof with respect to the cash
payable upon due surrender of their Company Certificates.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(ii)</FONT></DT><DD><FONT SIZE=2>Notwithstanding
the foregoing, to the fullest extent permitted by law, neither the Paying Agent nor any party hereto shall be liable to any holder of Certificates for
any amount paid to a public official pursuant to any applicable abandoned property, </FONT></DD></DL>
</DD></DL>
</UL>
</UL>
<P ALIGN="CENTER"><FONT SIZE=2>6</FONT></P>

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<P><FONT SIZE=2>escheat
or similar law. The Surviving Company shall pay all charges and expenses, including those of the Paying Agent, in connection with the exchange of cash for Company Common Shares and if
necessary Parent shall reimburse the Surviving Company for such charges and expenses. </FONT></P>

</UL>
</UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>(e)</FONT></DT><DD><FONT SIZE=2>Lost,
Stolen or Destroyed Certificates </FONT></DD></DL>
</UL>
</UL>
<UL>
<UL>
<UL>

<P><FONT SIZE=2>In
the event any Certificate shall have been lost, stolen or destroyed, upon the making of an affidavit of that fact by the Person claiming such Certificate to be lost, stolen or destroyed and, if
required by Parent, the posting by such Person of a bond in customary amount as indemnity against any claim that may be made against it with respect to such Certificate, the Paying Agent will pay in
exchange for such lost, stolen or destroyed Certificate the consideration due such holder pursuant to Section&nbsp;4.1(a) upon due surrender of the Company Common Shares represented by such
Certificate. </FONT></P>

</UL>
</UL>
</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3</FONT><FONT
SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;Dissenters' Rights</B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any
Company Common Shares that have not been voted for adoption of the Merger and this Agreement and with respect to which appraisal rights shall have been properly demanded in
accordance with Section&nbsp;262 of the DGCL shall not be converted into the right to receive the Merger Consideration unless and until the holder of such Company Common Shares withdraws his, her or
its demand for such appraisal in accordance with the DGCL. The Company shall give Parent notice of any written demands for appraisals, and withdrawals for demands for appraisal, of Company Common
Shares. Parent shall have the right to participate in all negotiations and proceedings with respect to any such demands. Neither the Company nor the Surviving Company shall, except with the prior
written consent of Parent, voluntarily make any payment with respect to, or settle or offer to settle, any such
demand for payment. If any Dissenting Stockholder shall fail to perfect or shall have effectively withdrawn or lost the right to dissent, Company Common Shares held by such Dissenting Stockholder
shall thereupon be treated as though such Company Common Shares had been converted into the Merger Consideration pursuant to Section&nbsp;4.1(a). </FONT></P>

<P><FONT SIZE=2><B>5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Representations and Warranties  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1</FONT><FONT
SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;Representations and Warranties of the Company</B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Except
as set forth in the numbered section of the disclosure letter attached hereto as Exhibit&nbsp;5.1 (the "Company Disclosure Letter") corresponding to the relevant paragraph below
or the Company Reports filed on or prior to the date hereof, the Company hereby represents and warrants to Parent and Merger Sub that: </FONT></P>

<UL>
<UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>(a)</FONT></DT><DD><FONT SIZE=2>Organization,
Good Standing and Qualification </FONT></DD></DL>
</UL>
</UL>
<UL>
<UL>
<UL>

<P><FONT SIZE=2>Each
of the Company and each of its Subsidiaries is a corporation duly organized, validly existing and in good standing under the laws of its jurisdiction of organization and has all requisite
corporate or similar power and authority to own and operate its properties and assets and to carry on its business as presently conducted and is duly qualified to do business and is in good standing
as a foreign corporation in each jurisdiction where the ownership or operation of its properties or conduct of its business requires such qualification except where the lack of such qualification
would not have a Company Material Adverse Effect. The Company has made available to Parent a complete and correct copy of the Company's and each of its Subsidiaries' certificates of incorporation and
bylaws, each as amended to date. The Company's and its Subsidiaries' certificates of incorporation and bylaws so delivered are in full force and effect. </FONT></P>

</UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>(b)</FONT></DT><DD><FONT SIZE=2>Capital
Structure </FONT></DD></DL>
</UL>
</UL>
<P ALIGN="CENTER"><FONT SIZE=2>7</FONT></P>

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</UL>
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<UL>
<UL>

<P><FONT SIZE=2>The
authorized capital stock of the Company consists of 10,000,000 Company Common Shares and 5,000,000 preferred shares, of which 2,323,944 Company Common Shares and no preferred shares are
outstanding on the date hereof. All of the outstanding Company Common Shares have been duly authorized and are validly issued, fully paid and nonassessable. As of the date of this Agreement, the
Company has no Company Common Shares reserved for issuance or subject to issuance. Each of the outstanding shares of capital stock or other equity interests of each of the Company's Subsidiaries is
duly authorized, validly issued, fully paid and nonassessable and, except for directors' qualifying and nominee shares, owned by a direct or indirect wholly owned subsidiary of the Company, free and
clear of any lien, pledge, security interest, claim or similar encumbrance. Except as set forth above, or in the Company Disclosure Letter or in the certificate of incorporation of the Company, there
are no preemptive or other outstanding rights, options, warrants, conversion rights, stock appreciation rights, redemption rights, repurchase rights, agreements, arrangements or commitments to issue
or sell any shares of capital stock or other securities of the Company or any of its Subsidiaries or any securities or obligations convertible or exchangeable into or exercisable for, or giving any
Person a right to subscribe for or acquire, any securities of the Company or any of its Subsidiaries, and no securities or obligations evidencing such rights are authorized, issued or outstanding. The
Company does not have outstanding any bonds, debentures, notes or other obligations the holders of which have the right to vote (or convertible into or exercisable for securities having the right to
vote) with the stockholders of the Company on any matter ("Company Voting Debt"). </FONT></P>

</UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>(c)</FONT></DT><DD><FONT SIZE=2>Corporate
Authority; Approval and Fairness
<BR><BR></FONT>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>(i)</FONT></DT><DD><FONT SIZE=2>The
Company has all requisite power and authority and has taken all corporate action necessary in order to execute, deliver and perform its obligations under this
Agreement and to consummate, subject only to approval of this Agreement by a majority of the votes entitled to be cast by holders of the Company Common Shares (the "Company Requisite Vote") and the
filing of the Merger Certificate with the Delaware Secretary of State, the Merger. This Agreement is a valid and binding agreement of the Company enforceable against the Company in accordance with its
terms, except that such enforcement may be subject to (i)&nbsp;bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting or relating to enforcement of creditors' rights
generally and (ii)&nbsp;general equitable principles (the "Bankruptcy and Equity Exception"). Upon the execution and delivery by the Company and certain holders of Company Common Shares, as further
set out in this Agreement, of the Employment Agreements, Consulting Agreements and Voting Agreements and each other agreement to be executed or delivered by any or all of the Company and certain
holders of Company Common Shares at the Closing (collectively, the "Company Closing Documents"), each of the Company Closing Documents will constitute a valid and binding agreement of the Company and
the relevant holders of Company Common Shares, enforceable against them in accordance with its terms, and subject only to the Bankruptcy and Equity Exception.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(ii)</FONT></DT><DD><FONT SIZE=2>The
Board of Directors of the Company (A)&nbsp;has approved this Agreement and the Merger and the other transactions contemplated hereby and (B)&nbsp;has received
the opinion of its financial advisor, Phoenix Capital Corp., a subsidiary of Laidlaw Global Services,&nbsp;Inc., to the effect that the Merger Consideration to be received by the holders of the
Company Common Shares in the Merger is fair to such holders from a financial point of view. It is agreed and understood that such opinion is for the </FONT></DD></DL>
</DD></DL>
</UL>
</UL>
<P ALIGN="CENTER"><FONT SIZE=2>8</FONT></P>

<HR NOSHADE>
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<A NAME="page_le4672_1_9"> </A>
<UL>
<UL>
<UL>
<UL>

<P><FONT SIZE=2>benefit
of the Company's Board of Directors and may not be relied on by Parent or Merger Sub. </FONT></P>

</UL>
</UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>(d)</FONT></DT><DD><FONT SIZE=2>Governmental
Filings; No Violations
<BR><BR></FONT>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>(i)</FONT></DT><DD><FONT SIZE=2>Other
than the filings and/or notices (A)&nbsp;pursuant to Section&nbsp;2.3, (B)&nbsp;pursuant to the Exchange Act or (C)&nbsp;required to be made with any
Governmental Entity in any jurisdiction outside the United States, including Ecuador and listed in Section&nbsp;5.1(d) of the Company Disclosure Letter, no notices, reports or other filings are
required to be made by the Company with, nor are any consents, registrations, approvals, permits or authorizations required to be obtained by the Company from, any Governmental Entity in connection
with the execution and delivery of this Agreement by the Company, the consummation by the Company of the Merger and the other transactions contemplated hereby, except those that the failure to make or
obtain are not, individually or in the aggregate, reasonably likely to have a Company Material Adverse Effect or prevent, materially delay or materially impair the ability of the Company to consummate
the Merger or the other transactions contemplated by this Agreement.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(ii)</FONT></DT><DD><FONT SIZE=2>The
execution, delivery and performance of this Agreement and the other Company Closing Documents by the Company and certain holders of Company Common Shares do not,
and the consummation by the Company of the Merger and the other transactions contemplated hereby will not, constitute or result in (A)&nbsp;a breach or violation of, or a default under, the
certificate of incorporation or bylaws of the Company or the comparable governing instruments of any of its Subsidiaries, or (B)&nbsp;a breach or violation of, a default under, the acceleration or
alteration of any obligations of or the creation of a lien, pledge, security interest, claim or similar encumbrance on the assets of the Company or any of its Subsidiaries (with or without notice,
lapse of time or both) pursuant to, any agreement, lease, sublease, contract, note, mortgage, indenture, arrangement or other obligation not otherwise terminable by the other party thereto on
90&nbsp;days' or less notice ("Contract") binding upon the Company or any of its Subsidiaries or any Law or governmental or non-governmental permit or license to which the Company or any
of its Subsidiaries is subject, except, in the case of clause&nbsp;(B) above, for any breach, violation, default, acceleration, creation or change that, individually or in the aggregate, is not
reasonably likely to have a Company Material Adverse Effect or that would prevent, materially delay or materially impair the ability of the Company to consummate the Merger or the other transactions
contemplated by this Agreement.
<BR><BR></FONT></DD></DL>
</DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(e)</FONT></DT><DD><FONT SIZE=2>Company
Contracts </FONT></DD></DL>
</UL>
</UL>
<UL>
<UL>
<UL>

<P><FONT SIZE=2>Section&nbsp;5.1(e)
of the Company Disclosure Letter lists any Contracts the performance of which involves consideration in excess of $100,000, other than distribution, purchase or supply agreements
entered into in the ordinary course of business, consistent with past practice (collectively, "Company Contracts"). The Company has made available to Parent a correct and complete copy of each written
Contract listed in Section&nbsp;5.1(e) of the Company Disclosure Letter. To the Knowledge of the Company, each Contract listed in Section&nbsp;5.1(e) of the Company Disclosure Letter is a valid
and binding agreement and is in full force and effect. For greater certainty, Company Contracts with Marubeni Canada&nbsp;Ltd. and Lantor BV (the "Marubeni and Lantor Contracts") are valid and
binding agreements and in full force and effect. </FONT></P>

</UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>(f)</FONT></DT><DD><FONT SIZE=2>Company
Reports; Financial Statements </FONT></DD></DL>
</UL>
</UL>
<P ALIGN="CENTER"><FONT SIZE=2>9</FONT></P>

<HR NOSHADE>
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<UL>
<UL>
</UL>
</UL>
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<P><FONT SIZE=2><A
NAME="page_lg4672_1_10"> </A> </FONT></P>

<UL>
<UL>
<UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>(i)</FONT></DT><DD><FONT SIZE=2>The
Company has delivered to Parent each registration statement, report, proxy statement or information statement prepared by it since December&nbsp;31, 2001,
including (A)&nbsp;the Company's Annual Report on Form&nbsp;10-K for the year ended December&nbsp;31, 2001, and (B)&nbsp;the Company's Quarterly Reports on Form&nbsp;10-Q for the periods
ended March&nbsp;31, June&nbsp;30 and September&nbsp;30, 2002, each in the form (including exhibits, annexes and any amendments thereto) filed with the SEC (collectively, including any such
reports filed subsequent to the date hereof and as amended, the "Company Reports"). As of their respective dates, (or, if amended, as of the date of such amendment) the Company Reports did not, and
any Company Reports filed with the SEC subsequent to the date hereof will not, contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or
necessary to make the statements made therein, in light of the circumstances in which they were made, not misleading. Each of the consolidated balance sheets included in or incorporated by reference
into the Company Reports (including the related notes and schedules) fairly presents, or will fairly present, in all material respects the consolidated financial position of the Company and its
subsidiaries as of its date and each of the consolidated statements of operations and consolidated statements of stockholder's equity and cash flows included in or incorporated by reference into the
Company Reports (including any related notes and schedules) fairly presents, or will fairly present, in all material respects the financial position, the results of operations and cash flows, as the
case may be, of the Company and its subsidiaries for the periods set forth therein (subject, in the case of unaudited statements, to notes and normal year-end audit adjustments that will
not be material in amount or effect), in each case in accordance with GAAP consistently applied during the periods involved, except as may be noted therein.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(ii)</FONT></DT><DD><FONT SIZE=2>Section&nbsp;5.1(f)
of the Company Disclosure Letter sets forth (i)&nbsp;the outstanding amount of long term indebtedness of the Company as of September&nbsp;30,
2002, and (ii)&nbsp;a list of the Contracts containing the terms of such indebtedness.
<BR><BR></FONT></DD></DL>
</UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>(g)</FONT></DT><DD><FONT SIZE=2>Absence
of Certain Changes </FONT></DD></DL>
</UL>
</UL>
<UL>
<UL>
<UL>

<P><FONT SIZE=2>Except
as set forth in Section&nbsp;5.1(g) of the Company Disclosure letter and actions contemplated by this Agreement (including the Shrimp Business Divestiture) and except as reflected, reserved
or otherwise disclosed in the financial statements included in or incorporated by reference in the Company Reports, since the Audit Date, the Company and its Subsidiaries have conducted their
respective businesses only in, and have not engaged in any material transaction other than according to, the ordinary and usual course of such businesses and there has not been (i)&nbsp;any change
in the financial condition, business or results of operations of the Company and its Subsidiaries that, individually or in the aggregate, has had or is reasonably likely to have a Company Material
Adverse Effect; (ii)&nbsp;any declaration, setting aside or payment of any dividend or other distribution (whether in cash, stock or property) with respect to any of the Company's capital stock,
(iii)&nbsp;any split, dividend, combination, recapitalization or similar transaction with respect to any of the Company's capital stock or any issuance or the authorization of any issuance of any
other securities in respect of, in lieu of or in substitution for shares of the Company's capital stock, except for issuances of Company Shares upon the exercise of Options awarded prior to the date
hereof in accordance with their terms, (iv)&nbsp;any granting by the Company or any of its Subsidiaries to any Employee of any increase in compensation, bonus or other benefits (including the right
to accelerated vesting with respect to any option or restricted share award or any other change in control related benefit or compensation), except for normal increases in the </FONT></P>

</UL>
</UL>
</UL>
<P ALIGN="CENTER"><FONT SIZE=2>10</FONT></P>

<HR NOSHADE>
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<UL>
<UL>
<UL>

<P><FONT SIZE=2>ordinary
course of business and in accordance with past practice or as was required under any employment agreements in effect as of December&nbsp;31, 2001, (v)&nbsp;any granting by the Company or
any of its Subsidiaries to any Employee of any increase in severance or termination pay, except in the ordinary course of business and consistent with past practice, (vi)&nbsp;any entry by the
Company or any of its Subsidiaries into, or any amendments of, any Company Compensation and Benefit Plan, (vii)&nbsp;any tax election made or changed that would be material to the Company or any of
its tax attributes or any settlement or compromise of any material tax audit or (viii)&nbsp;any change by the Company in any of its material accounting principles, practices or methods, other than
any such changes made as a result of any change in GAAP. </FONT></P>

</UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>(h)</FONT></DT><DD><FONT SIZE=2>Litigation
and Liabilities </FONT></DD></DL>
</UL>
</UL>
<UL>
<UL>
<UL>

<P><FONT SIZE=2>Except
as reflected, reserved or otherwise disclosed in the financial statements included in or incorporated by reference in the Company Reports, there are no (i)&nbsp;claims of any nature by any
Person, including any Governmental Entity, pending or, to the Knowledge of the Company, threatened against the Company or any of its Subsidiaries or (ii)&nbsp;Obligations relating to the Company and
its Subsidiaries which would be required to be reflected, reserved or otherwise disclosed in the consolidated financial statements of the Company under applicable accounting principles if occurring on
a date covered by such financial statements, including those relating to matters involving any Environmental Law, of the Company or any of its Subsidiaries, except for such claims or obligations that
could have been incurred in accordance with Section&nbsp;6.1(b) had the provisions of such Section been applicable at such time or as are not, individually or in the aggregate, reasonably likely to
have a Company Material Adverse Effect. </FONT></P>

</UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>(i)</FONT></DT><DD><FONT SIZE=2>Employee
Benefits
<BR><BR></FONT>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>(i)</FONT></DT><DD><FONT SIZE=2>A
copy of each bonus, deferred compensation, pension, retirement, profit-sharing, thrift, savings, employee stock ownership, stock bonus, stock purchase, restricted
stock, deferred stock, stock option, employment, termination, severance, compensation, medical, health or other plan, agreement, policy or arrangement that covers current or former employees of the
Company and its Subsidiaries (the "Employees") and current or former directors of the Company (the "Compensation and Benefit Plans") and any trust agreement or insurance contract forming a part of
such material Compensation and Benefit Plans has been made available to Parent prior to the date hereof other than Compensation and Benefit Plans that are not material. The material Compensation and
Benefit Plans are listed in Section&nbsp;5.1(i)&nbsp;of the Company Disclosure Letter.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(ii)</FONT></DT><DD><FONT SIZE=2>All
Compensation and Benefit Plans covering Employees ("Plans") to the extent subject to ERISA, are in substantial compliance with ERISA. Each Plan that is a Pension
Plan has received a favorable determination letter from the IRS or the Company has taken other appropriate action to ensure that such Plan will not lose its qualification under Section&nbsp;401(a)
of the Code, and the Company is not aware of any circumstances likely to result in revocation of any such favorable determination letter or the loss of such qualification. As of the date hereof, there
is no pending or, to the Knowledge of the Company, threatened material litigation relating to the Compensation and Benefit Plans. Neither the Company nor any of its Subsidiaries has engaged in a
transaction with respect to any Compensation and Benefit Plan that, assuming the taxable period of such transaction expired as of the date hereof, would subject the Company or any of its Subsidiaries
to a material tax or penalty imposed by either Section&nbsp;4975 of the Code or Section&nbsp;502 of ERISA. </FONT></DD></DL>
</DD></DL>
</UL>
</UL>
<P ALIGN="CENTER"><FONT SIZE=2>11</FONT></P>

<HR NOSHADE>
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<UL>
<UL>
<UL>
<UL>
</UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>(iii)</FONT></DT><DD><FONT SIZE=2>As
of the date hereof, no liability under Subtitle C or D of Title IV of ERISA has been or is expected to be incurred by the Company or any Subsidiary with respect to
any ongoing, frozen or terminated "single-employer plan", within the meaning of Section&nbsp;4001(a)(15) of ERISA, currently or formerly maintained by any of them, or the single-employer plan of any
entity which is considered one employer with the Company under Section&nbsp;4001 of ERISA or Section&nbsp;414 of the Code (an "ERISA Affiliate"). The Company and its Subsidiaries have not incurred
and do not expect to incur any withdrawal liability with respect to a multiemployer plan under Subtitle E to Title IV of ERISA. No notice of a "reportable event", within the meaning of
Section&nbsp;4043 of ERISA for which the 30-day reporting requirement has not been waived, has been required to be filed for any Pension Plan or by any ERISA Affiliate within the
12-month period ending on the date hereof.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(iv)</FONT></DT><DD><FONT SIZE=2>All
contributions required to be made under the terms of any Compensation and Benefit Plan as of the date hereof have been timely made or have been reflected on the
most recent consolidated balance sheet filed or incorporated by reference in the Company Reports prior to the date hereof. Neither any Pension Plan nor any single-employer plan of an ERISA Affiliate
has an "accumulated funding deficiency" (whether or not waived) within the meaning of Section&nbsp;412 of the Code or Section&nbsp;302 of ERISA.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(v)</FONT></DT><DD><FONT SIZE=2>Neither
the Company nor its Subsidiaries have (a)&nbsp;any defined benefit plans or (b)&nbsp;any obligations for retiree health and life benefits under any
Compensation and Benefit Plan.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(vi)</FONT></DT><DD><FONT SIZE=2>The
consummation of the Merger and the other transactions contemplated by this Agreement will not (x)&nbsp;entitle any employees of the Company or its Subsidiaries to
severance pay, (y)&nbsp;accelerate the time of payment or vesting or trigger any payment of compensation or benefits under, increase the amount payable or trigger any other material obligation
pursuant to, any of the Compensation and Benefit Plans or (z)&nbsp;result in any breach or violation of, or a default under, any of the Compensation and Benefit Plans.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(vii)</FONT></DT><DD><FONT SIZE=2>All
employee benefit plans maintained outside of the United States comply in all respects with applicable local law except for such failures to comply as would not,
individually or in the aggregate, result in a Company Material Adverse Effect.
<BR><BR></FONT></DD></DL>
</UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>(j)</FONT></DT><DD><FONT SIZE=2>Compliance
with Laws; Permits </FONT></DD></DL>
</UL>
</UL>
<UL>
<UL>
<UL>

<P><FONT SIZE=2>The
businesses of each of the Company and its Subsidiaries have not been, and are not being, conducted in violation of any federal, state, local or foreign law, statute, ordinance, rule, regulation,
judgment, order, injunction, decree, arbitration award, agency requirement, license or permit of any Governmental Entity (collectively, "Laws"), except for violations that, individually or in the
aggregate, are not reasonably likely to have a Company Material Adverse Effect. </FONT></P>

</UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>(k)</FONT></DT><DD><FONT SIZE=2>Takeover
Statutes </FONT></DD></DL>
</UL>
</UL>
<UL>
<UL>
<UL>

<P><FONT SIZE=2>No
"fair price", "moratorium", "control share acquisition" or other similar antitakeover statute or regulation (including, without limitation, Section&nbsp;203 of the DGCL) (each, a "Takeover
Statute") is, or at the Merger Effective Time will be, applicable to the Company, the Company Common Shares, the Merger or the other transactions contemplated by this Agreement. Assuming the accuracy
of Parent's representations and warranties contained in Section&nbsp;5.2(d) (Ownership of Shares), the Board of Directors of the Company has taken all action so that Parent will not be prohibited
from entering into </FONT></P>

</UL>
</UL>
</UL>
<P ALIGN="CENTER"><FONT SIZE=2>12</FONT></P>

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<UL>
<UL>

<P><FONT SIZE=2>a
"business combination" with the Company as an "interested stockholder" (in each case as such term is used in Section&nbsp;203 of the DGCL) as a result of the execution of this Agreement or the
consummation of the Merger. </FONT></P>

</UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>(l)</FONT></DT><DD><FONT SIZE=2>Environmental
Matters </FONT></DD></DL>
</UL>
<UL>
<UL>

<P><FONT SIZE=2>Except
as disclosed in section&nbsp;5.1(l) of the Company Disclosure Letter or the Company Reports filed with the SEC prior to the date hereof and except for such matters that, alone or in the
aggregate, are not reasonably likely to have a Company Material Adverse Effect, (i)&nbsp;the Company and its subsidiaries have complied with all applicable Environmental Laws; (ii)&nbsp;the
properties presently or formerly owned or operated by the Company or its subsidiaries (including, without limitation, soil, groundwater or surface water on, under or adjacent to the properties, and
buildings thereon) do not contain any Hazardous Substance other than as permitted under applicable Environmental Law, do not, and have not, contained any underground storage tanks, do not have any
asbestos present (and have not had any asbestos removed therefrom) and have not been used as a sanitary landfill or hazardous waste disposal site (provided, however, that with respect to such
properties formerly owned or operated by the Company, such representation is limited to the period prior to the disposition of such Properties by the Company or one of its subsidiaries);
(iii)&nbsp;neither the Company nor any of its subsidiaries has received any notices, demand letters or request for information from any Governmental Entity or any third party that the Company may be
in violation of, or liable under, any Environmental Law and none of the Company, its subsidiaries or the Properties are subject to any court order, administrative order or decree arising under any
Environmental Law and (iv)&nbsp;no Hazardous Substance has been disposed of, transferred, released or transported from any of the Properties during the time such Property was owned or operated by
the Company or one of its subsidiaries, other than as permitted under applicable Environmental Law. </FONT></P>

</UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>(m)</FONT></DT><DD><FONT SIZE=2>Taxes
</FONT></DD></DL>
</UL>
</UL>
<UL>
<UL>
<UL>

<P><FONT SIZE=2>The
Company and each of its Subsidiaries (i)&nbsp;have prepared in good faith and duly and timely filed (taking into account any extension of time within which to file) all Tax Returns required to
be filed by
any of them; (ii)&nbsp;have paid all Taxes that are shown as due on such filed Tax Returns, except with respect to matters contested in good faith; and (iii)&nbsp;have not waived any statute of
limitations with respect to Taxes or agreed to any extension of time with respect to a Tax assessment or deficiency. As of the date hereof, there are not pending or, to the Knowledge of the Company,
threatened in writing, any audits, examinations, investigations or other proceedings in respect of Taxes or Tax matters. </FONT></P>

</UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>(n)</FONT></DT><DD><FONT SIZE=2>Labor
Matters </FONT></DD></DL>
</UL>
</UL>
<UL>
<UL>
<UL>

<P><FONT SIZE=2>Except
as set forth in Section&nbsp;5.1 (n)&nbsp;of the Company Disclosure Letter, as of the date hereof, neither the Company nor any of its Subsidiaries is the subject of any material proceeding
asserting that the Company or any of its Subsidiaries has committed an unfair labor practice or is seeking to compel it to bargain with any labor union or labor organization nor is there pending or,
to the knowledge of the Company, threatened, nor has there been for the past five years, any labor strike, dispute, walk-out, work stoppage, slow-down or lockout involving the
Company or any of its Subsidiaries. </FONT></P>

</UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>(o)</FONT></DT><DD><FONT SIZE=2>Insurance
</FONT></DD></DL>
</UL>
</UL>
<UL>
<UL>
<UL>

<P><FONT SIZE=2>All
material fire and casualty, general liability, business interruption, product liability, and sprinkler and water damage insurance policies maintained by the Company or any of its Subsidiaries are
in full force and effect, except for any such failures to maintain insurance </FONT></P>

</UL>
</UL>
</UL>
<P ALIGN="CENTER"><FONT SIZE=2>13</FONT></P>

<HR NOSHADE>
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<UL>
<UL>
<UL>

<P><FONT SIZE=2>policies
that, individually or in the aggregate, are not reasonably likely to have a Company Material Adverse Effect. </FONT></P>

</UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>(p)</FONT></DT><DD><FONT SIZE=2>Intellectual
Property
<BR><BR></FONT>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>(i)</FONT></DT><DD><FONT SIZE=2>The
Company and/or each of its Subsidiaries owns, or is licensed or otherwise possesses rights to use all patents, trademarks, trade names, service marks, copyrights,
and any applications therefor, technology, know-how, computer software programs or applications, and tangible or intangible proprietary information or materials that are used in the
business of the Company and its Subsidiaries as currently conducted, except for any such failures to own, be licensed or possess as are not reasonably likely, individually or in the aggregate, to have
a Company Material Adverse Effect, and to the Knowledge of the Company, all material patents, trademarks, trade names, service marks and copyrights used in the business of the Company and its
Subsidiaries as currently conducted are valid and subsisting.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(ii)</FONT></DT><DD><FONT SIZE=2>Except
for such matters not reasonably likely to have a Company Material Adverse Effect: (A)&nbsp;neither the Company nor any of its Subsidiaries is, nor will it be
as a result of the execution and delivery of this Agreement or the performance of its obligations hereunder, in violation of any licenses, sublicenses and other agreements used in the business of the
Company and its Subsidiaries as currently conducted as to which it is a party and pursuant to which it is authorized to use any third-party patents, trademarks, service marks, copyrights, trade
secrets or computer software (collectively, "Third-Party Intellectual Property Rights"), and particularly, without limiting the generality of the foregoing, in violation of any Third-Party
Intellectual Property Rights under the Marubeni and Lantor Contracts; (B)&nbsp;no claims with respect to (I)&nbsp;the patents, registered and material unregistered trademarks and service marks,
registered copyrights, trade names, and any applications therefor, trade secrets or computer software owned by the Company or any of its Subsidiaries and used in the business of the Company and its
Subsidiaries as currently conducted (collectively, the "Company Intellectual Property Rights"); or (II)&nbsp;Third-Party Intellectual Property Rights used in the business of the Company and its
Subsidiaries as currently conducted are currently pending or, to the Knowledge of the Company, are threatened by any Person; and (C)&nbsp;to the Knowledge of the Company, there is no unauthorized
use, infringement or misappropriation of any of the Company Intellectual Property Rights used in the business of the Company and its Subsidiaries as currently conducted by any third party.
<BR><BR></FONT></DD></DL>
</DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(q)</FONT></DT><DD><FONT SIZE=2>Brokers
and Finders </FONT></DD></DL>
</UL>
</UL>
<UL>
<UL>
<UL>

<P><FONT SIZE=2>Neither
the Company nor any of its subsidiaries has employed any broker or finder or incurred any liability for any brokerage fees, commissions or finders fees in connection with Merger, or the
transactions contemplated by this Agreement, except that the Company has employed Elliot Stein Jr. in relation to this transaction, the arrangements with whom have been disclosed in writing to Parent
prior to the date hereof. </FONT></P>

</UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>(r)</FONT></DT><DD><FONT SIZE=2>Vote
Required </FONT></DD></DL>
</UL>
</UL>
<UL>
<UL>
<UL>

<P><FONT SIZE=2>The
Company Requisite Vote is the only vote of the holders of any class or series of the Company capital stock necessary to adopt this Agreement and approve the transactions contemplated hereby. </FONT></P>

</UL>
</UL>
</UL>
<P ALIGN="CENTER"><FONT SIZE=2>14</FONT></P>

<HR NOSHADE>
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</UL>
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<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2</FONT><FONT
SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;Representations and Warranties of Parent and Merger Sub</B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Parent and Merger Sub hereby represent and warrant
to the Company that: </FONT></P>

<UL>
<UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>(a)</FONT></DT><DD><FONT SIZE=2>Organization,
Good Standing and Qualification
<BR><BR></FONT>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>(i)</FONT></DT><DD><FONT SIZE=2>Each
of Parent and Merger Sub is a corporation duly organized, validly existing and in good standing under the laws of its respective jurisdiction of organization and
has all requisite corporate or similar power and authority to own and operate its properties and assets and to carry on its business as presently conducted and is qualified to do business and is in
good standing as a foreign corporation in each jurisdiction where the ownership or operation of its properties or conduct of its business requires such qualification, except where the failure to be so
qualified or in such good standing, when taken together with all other such failures, is not reasonably likely to prevent or impair the ability of Parent, or Merger Sub to consummate the Merger or
affect the validity of the Merger.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(ii)</FONT></DT><DD><FONT SIZE=2>The
Merger Sub was formed solely for the purpose of engaging in the transactions contemplated hereby and has not carried on any activities to date other than those
incident to its formation and the consummation of this Agreement.
<BR><BR></FONT></DD></DL>
</DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(b)</FONT></DT><DD><FONT SIZE=2>Corporate
Authority </FONT></DD></DL>
</UL>
</UL>
<UL>
<UL>
<UL>

<P><FONT SIZE=2>No
vote of the holders of the capital stock of Parent is necessary to approve this Agreement, the Merger or the other transactions contemplated hereby. Parent and Merger Sub each has the requisite
corporate power and authority and has taken all corporate action necessary in order to execute and deliver this Agreement and to consummate the Merger and the other transactions contemplated hereby.
This Agreement has been duly adopted by the sole stockholder of Merger Sub, in accordance with applicable law and the applicable certificate of incorporation and bylaws of such corporation. This
Agreement is a valid and binding agreement of Parent and Merger Sub enforceable against each of them in accordance with its terms, subject to the Bankruptcy and Equity Exception. </FONT></P>

</UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>(c)</FONT></DT><DD><FONT SIZE=2>Governmental
Filings; No Violations
<BR><BR></FONT>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>(i)</FONT></DT><DD><FONT SIZE=2>Other
than the filings and/or notices (A)&nbsp;pursuant to Section&nbsp;2.3, (B)&nbsp;pursuant to the Exchange Act, (C)&nbsp;pursuant to any Environmental Laws,
and (D)&nbsp;required to be made with any Governmental Entity in any jurisdiction outside the United States, no notices, reports or other filings are required to be made by Parent or Merger Sub
with, nor are any consents, registrations, approvals, permits or authorizations required to be obtained by Parent or Merger Sub from, any Governmental Entity, in connection with the execution and
delivery of this Agreement by Parent or Merger Sub and the consummation by Parent and Merger Sub of the Merger and the other transactions contemplated hereby, except those that the failure to make or
obtain are not, individually or in the aggregate, reasonably likely to prevent, materially delay or impair the ability of Parent or Merger Sub to consummate the Merger or the other transactions
contemplated by this Agreement.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(ii)</FONT></DT><DD><FONT SIZE=2>The
execution, delivery and performance of this Agreement by Parent and Merger Sub do not, and the consummation by Parent and Merger Sub of the Merger and the other
transactions contemplated hereby will not, constitute or result in (A)&nbsp;a breach or violation of, or a default under, the certificate of incorporation or bylaws of Parent or the comparable
governing instruments of any of its Subsidiaries, or (B)&nbsp;a breach or violation of, or a default under, the acceleration of any obligations or the creation of a lien, pledge, security interest
or other encumbrance on the assets of </FONT></DD></DL>
</DD></DL>
</UL>
</UL>
<P ALIGN="CENTER"><FONT SIZE=2>15</FONT></P>

<HR NOSHADE>
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<UL>
<UL>
<UL>
<UL>

<P><FONT SIZE=2>Parent
or any of its Subsidiaries (with or without notice, lapse of time or both) pursuant to, any Contracts binding upon Parent or any of its Subsidiaries or any Law or governmental or
non-governmental permit or license to which Parent or any of its Subsidiaries is subject, except, in the case of clause&nbsp;(B) above, for breach, violation, default, acceleration,
creation or change that, individually or in the aggregate, is not reasonably likely to prevent, materially delay or impair the ability of Parent or Merger Sub to consummate the Merger or the other
transactions contemplated by this Agreement. </FONT></P>

</UL>
</UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>(d)</FONT></DT><DD><FONT SIZE=2>Ownership
of Shares </FONT></DD></DL>
</UL>
</UL>
<UL>
<UL>
<UL>

<P><FONT SIZE=2>Neither
Parent nor any of its Subsidiaries beneficially owns or is the beneficial Owner of any Company Common Shares. </FONT></P>

</UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>(e)</FONT></DT><DD><FONT SIZE=2>Funds </FONT></DD></DL>
</UL>
<UL>
<UL>

<P><FONT SIZE=2>Parent
has, as of the date of this Agreement, and will have, as of and following the Closing, all funds necessary to consummate the Merger and the other transactions contemplated by this Agreement. </FONT></P>

</UL>
</UL>
</UL>

<P><FONT SIZE=2><B>6.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Covenants</B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>Interim Operations</B></FONT></P>

<UL>
<UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>(a)</FONT></DT><DD><FONT SIZE=2><B>The Company covenants and agrees as to itself and its Subsidiaries that, after the date hereof and prior to the Merger Effective Time (unless Parent shall
otherwise approve in writing, which approval shall not be unreasonably withheld or delayed), and except as otherwise contemplated by this Agreement (including the Shrimp Business Divestiture) or the
Company Disclosure Letter:</B></FONT><FONT SIZE=2>
<BR><BR></FONT>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>(i)</FONT></DT><DD><FONT SIZE=2>it
shall operate the business of it and its Subsidiaries only in the ordinary course of business, consistent with past practice, and, to the extent consistent with such
operation, use its best efforts to: (A)&nbsp;preserve the present business organization intact; and (B)&nbsp;preserve all beneficial business relationships with all customers, suppliers, employees
and others having business dealings with the business of it and its Subsidiaries;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(ii)</FONT></DT><DD><FONT SIZE=2>it
shall maintain (A)&nbsp;the material assets of the Company in such condition and repair consistent with past practice, and (B)&nbsp;insurance upon all of the
material assets of the Company and with respect to the conduct of the business of the Company in full force and effect, comparable in amount, scope, and coverage to that in effect on the date of this
Agreement;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(iii)</FONT></DT><DD><FONT SIZE=2>it
shall not (A)&nbsp;issue, sell, pledge, dispose of or encumber any capital stock owned by it in any of its Subsidiaries; (B)&nbsp;amend its certificate of
incorporation or bylaws; (C)&nbsp;split, combine or reclassify its outstanding shares of capital stock; (D)&nbsp;declare, set aside or pay any dividend payable in cash, stock or property in
respect of any capital stock other than dividends from its direct or indirect wholly owned Subsidiaries; or (E)&nbsp;repurchase, redeem or otherwise acquire, or permit any of its Subsidiaries to
purchase or otherwise acquire, any shares of its capital stock or any securities convertible into or exchangeable or exercisable for any shares of its capital stock;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(iv)</FONT></DT><DD><FONT SIZE=2>neither
it nor any of its Subsidiaries shall (A)&nbsp;issue, sell, pledge, dispose of or encumber any shares of, or securities convertible into or exchangeable or
exercisable for, or options, warrants, calls, commitments or rights of any kind to acquire, any </FONT></DD></DL>
</DD></DL>
</UL>
</UL>
<P ALIGN="CENTER"><FONT SIZE=2>16</FONT></P>

<HR NOSHADE>
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<UL>
<UL>
<UL>

<P><FONT SIZE=2>shares
of its capital stock of any class or any Company Voting Debt; (B)&nbsp;grant or sell any option or right to purchase the assets of the Company, except regarding non-material
assets in the ordinary course of business, consistent with past practice; or (C)&nbsp;subject any of the assets of the Company to any further material lien, charge, mortgage, pledge, security
interest or similar encumbrance (each, an "Encumbrance"), other than (i)&nbsp;as reflected, reserved or otherwise disclosed in the financial statements included in or incorporated by reference in
the Company Reports and (ii)&nbsp;in the ordinary course of business, consistent with past practice; </FONT></P>

</UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>(v)</FONT></DT><DD><FONT SIZE=2>neither
it nor any of its Subsidiaries shall terminate, establish, adopt, enter into, make any new grants or awards under, amend or otherwise modify, any Compensation
and Benefit Plans or pay or promise to pay, any bonus, profit-sharing or special compensation to the Employees or make any increase in the compensation payable or to become payable to any of such
employees, except (i)&nbsp;for changes that are required by applicable law, (ii)&nbsp;to satisfy obligations under the terms of any agreement or plan in effect as of the date hereof,
(iii)&nbsp;for increases in compensation that are made in the ordinary course of business consistent with past practice (which shall include normal periodic performance reviews and related
compensation and benefit increases) and (iv)&nbsp;for employment arrangements for or grants of awards to, newly hired employees in the ordinary course of business consistent with past practice;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(vi)</FONT></DT><DD><FONT SIZE=2>except
in the ordinary course of business consistent with past practice, neither it nor any of its Subsidiaries shall enter into or terminate any Company Contract, or
make any change in any of its Company Contracts;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(vii)</FONT></DT><DD><FONT SIZE=2>neither
it nor any of its Subsidiaries shall make any tax election or permit any insurance policy naming it as a beneficiary or loss-payable payee to be
canceled or terminated without prior notice to Parent, except in the ordinary and usual course of business;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(viii)</FONT></DT><DD><FONT SIZE=2>neither
it nor any of its Subsidiaries shall settle or compromise any material claims or litigation or, except in the ordinary and usual course of business, waive,
release or assign any material rights or claims; and
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(ix)</FONT></DT><DD><FONT SIZE=2>neither
it nor any of its Subsidiaries shall authorize or enter into an agreement to do any of the foregoing.
<BR><BR></FONT></DD></DL>
</UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>(b)</FONT></DT><DD><FONT SIZE=2><B>The provisions of this Section&nbsp;6.1 notwithstanding, nothing in this Agreement shall be construed or interpreted to prevent the Company or any Subsidiary
from (i)&nbsp;making, accepting or settling intercompany advances to, from or with one another; (ii)&nbsp;causing any Subsidiary to pay or distribute to the Company all cash, money market
instruments, bank deposits, certificates of deposit, other cash equivalents, marketable securities and other investment securities then owned or held by such Subsidiary; or (iii)&nbsp;engaging in
any other transaction incident to the normal cash management procedures of the Company and its Subsidiaries, including, without limitation, short-term investments in bank deposits, money
market instruments, time deposits, certificates of deposit and bankers' acceptances and borrowings for working capital purposes and purposes of providing additional funds to Subsidiaries made, in each
case, in the ordinary course of business, consistent with past practice.</B></FONT></DD></DL>
</UL>
</UL>
<P ALIGN="CENTER"><FONT SIZE=2>17</FONT></P>

<HR NOSHADE>
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<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2</FONT><FONT
SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;Acquisition Proposals</B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;The Company agrees that neither it nor any Subsidiary of the Company nor any of their
respective officers or directors shall, and that it shall direct and use its best efforts to cause its and such Subsidiaries' employees, agents and representatives (including any investment banker,
attorney or accountant retained by them or any of the Company's Subsidiaries) not to, directly or indirectly, (i)&nbsp;initiate, solicit, encourage or otherwise facilitate any inquiries or the
making of any proposal or offer with respect to a merger, reorganization, share exchange, consolidation, purchase, or similar transaction involving more than 5% of the consolidated assets or any
outstanding equity securities of the Company (any such proposal or offer being hereinafter referred to as an "Acquisition Proposal") or (ii)&nbsp;engage in any negotiations concerning, or provide
any confidential information or data to, or have any discussions with, any Person relating to an Acquisition Proposal, or otherwise facilitate any effort or attempt to make or implement an Acquisition
Proposal; provided, however, that nothing contained in this Agreement shall prevent the Company, its directors, officers, agents or other representatives from (A)&nbsp;complying with its disclosure
obligations under federal or state law; (B)&nbsp;providing information in response to a request therefor by a Person who has made an unsolicited bona fide written Acquisition Proposal if the Board
of Directors receives from the Person so requesting such information an executed confidentiality agreement; (C)&nbsp;engaging in any negotiations or discussions with any Person who has made an
unsolicited bona fide written Acquisition Proposal; or (D)&nbsp;recommending such an Acquisition Proposal to the stockholders of the Company, if and only to the extent that, (i)&nbsp;in each such
case referred to in clause&nbsp;(C) or (D)&nbsp;above, the Board of Directors of the Company determines in good faith (after consultation with outside legal counsel) that failure to take such
action would, in the absence of the foregoing proscriptions, be inconsistent with the fiduciary duties of the directors under applicable law and (ii)&nbsp;in the case referred to in
clause&nbsp;(D) above, the Board of Directors of the Company determines in good faith (after consultation with its financial advisor) that such Acquisition Proposal, if consummated, would result in
a transaction more favorable to the Company's stockholders from a financial point of view than the transaction contemplated by this
Agreement (being a cash offer superior to the transaction contemplated by this Agreement by no less than 15% of the aggregate Merger Consideration) (such more favorable Acquisition Proposal being
referred to in this Agreement as a "Superior Proposal"). The Company agrees that it will immediately cease and cause to be terminated any existing activities, discussions or negotiations with any
parties conducted heretofore with respect to any Acquisition Proposals. The Company agrees that it will notify Parent immediately if any such inquiries, proposals or offers are received by, any such
information is requested from, or any such discussions or negotiations are sought to be initiated or continued with, any of its representatives. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.3</FONT><FONT
SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;Stockholder Approvals</B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Subject to fiduciary obligations under applicable law, the Board of Directors of the
Company shall recommend approval of the transactions contemplated by this Agreement to the holders of Company Common Shares and will take, in accordance with applicable law and its certificate of
incorporation and bylaws, all actions necessary to obtain the Company Requisite Vote ("Stockholder Approval") as promptly as practicable. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.4</FONT><FONT
SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;Stockholder Meeting and Proxy Statement</B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;</FONT></P>

<UL>
<UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>(a)</FONT></DT><DD><FONT SIZE=2>The
Company will take, consistent with applicable law and its certificate of incorporation and by-Laws, all action necessary to convene a meeting of holders of Company
Common Shares as promptly as practicable to consider and vote upon the approval of this Agreement and the Merger. Subject to fiduciary requirements of applicable law, the Board of Directors of the
Company shall recommend such approval and the Company shall take all lawful action to solicit such approval. The Company will cause its proxy or information statement with respect to such meeting of
shareholders (the "Proxy Statement") to comply with the applicable requirements of the Exchange Act including, without limitation, Sections 14(a) and 14(d) thereof and the regulations of the Nasdaq
Stock Market and, at the date thereof and at the date of such meeting, will not include </FONT></DD></DL>
</UL>
</UL>
<P ALIGN="CENTER"><FONT SIZE=2>18</FONT></P>

<HR NOSHADE>
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<UL>
<UL>

<P><FONT SIZE=2>an
untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were
made, not misleading; provided, however, that the foregoing shall not apply to the extent that any such untrue statement of a material fact or omission to state a material fact was made by the Company
in reliance upon and in conformity with written information concerning Parent furnished to the Company by Parent specifically for use in the Proxy Statement. The Proxy Statement shall not be filed,
and no amendment or supplement to the Proxy Statement will be made by the Company, without prior consultation with Parent and its counsel. </FONT></P>

</UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>(b)</FONT></DT><DD><FONT SIZE=2>Any
information provided by Parent or Merger Sub in writing expressly for use in any document to be filed with any Governmental Entity in connection with the Merger and the
transactions contemplated hereby or supplied in writing by Parent or Merger Sub specifically for inclusion in the Proxy will be true and correct in all material respects. </FONT></DD></DL>
</UL>
</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.5</FONT><FONT
SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;Filings; Other Actions; Notification</B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;</FONT></P>

<UL>
<UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>(a)</FONT></DT><DD><FONT SIZE=2>The
Company and Parent shall cooperate with each other and shall use (and shall cause their respective Subsidiaries to use) their respective best efforts to take or cause to be taken
all actions, and do or cause to be done all things, necessary, proper or advisable on its part under this Agreement and applicable Laws to consummate and make effective the Merger as promptly as
practicable, including preparing and filing as promptly as practicable all documentation to effect all necessary notices, reports and other filings and to obtain as promptly as practicable all
consents, registrations, approvals, permits and authorizations necessary or advisable to be obtained from any third party and/or any Governmental Entity in order to consummate the Merger. Subject to
applicable Laws and the terms of any relevant agreements with third parties relating to the exchange of information, Parent and the Company shall have the right to review in advance, and to the extent
practicable each will consult the other on, all the information relating to Parent or the Company, as the case may be, and any of their respective Subsidiaries, that appear in any filing made with, or
written materials submitted to, any third party and/or any Governmental Entity in connection with the Merger. In exercising the foregoing right, each of the Company and Parent shall act reasonably and
as promptly as practicable.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(b)</FONT></DT><DD><FONT SIZE=2>The
Company and Parent each shall, upon request by the other, furnish the other with all information concerning itself, its Subsidiaries, directors, officers and stockholders and such
other matters as may be reasonably necessary or advisable in connection with the Proxy Statement, or any other statement, filing, notice or application made by or on behalf of Parent, the Company or
any of their respective Subsidiaries to any third party and/or any Governmental Entity in connection with the Merger.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(c)</FONT></DT><DD><FONT SIZE=2>The
Company and Parent each shall keep the other apprised of the status of matters relating to completion of the transactions contemplated hereby, including promptly furnishing the
other with copies of notice or other communications received by Parent or the Company, as the case may be, or any of its Subsidiaries, from any third party and/or any Governmental Entity with respect
to the Merger; provided, however, that in respect of any communication to or from any Governmental Entities relating to the Merger, each Party shall afford the other Party with advance notice of, and
a meaningful opportunity to participate in, any such communications, including, without limitation, a right to attend, with advisors present, any meetings (telephonic or in person) with such
Governmental Entities. </FONT></DD></DL>
</UL>
</UL>
<P ALIGN="CENTER"><FONT SIZE=2>19</FONT></P>

<HR NOSHADE>
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</UL>
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<P><FONT SIZE=2><A
NAME="page_li4672_1_20"> </A> </FONT></P>

<UL>
<UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>(d)</FONT></DT><DD><FONT SIZE=2>The
Company shall give prompt notice to Parent of: (i)&nbsp;any notice of, or other communication relating to, any environmental matter, a default or event that, with notice or
lapse of time or both, would become a default, received by the Company or any of its subsidiaries subsequent to the date of this Agreement and prior to the Merger Effective Time, under any Company
Contract; and (ii)&nbsp;any Company Material Adverse Effect or the occurrence of any event which, so far as reasonably can be foreseen at the time of its occurrence, is reasonably likely to result
in any such change.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(e)</FONT></DT><DD><FONT SIZE=2>Without
limiting the generality of the undertakings pursuant to this Section&nbsp;6.5, the Company and Parent agree to take or cause to be taken the following actions:
(i)&nbsp;provide promptly to any and all federal, state, local or foreign courts or Governmental Entities with jurisdiction over enforcement of any applicable antitrust laws (each, a "Government
Antitrust Entity") information and documents requested by any Government Antitrust Entity or necessary, proper or advisable to permit consummation of the Merger; and (ii)&nbsp;take promptly, in the
event that any permanent or preliminary injunction or other order is entered or becomes reasonably foreseeable to be entered in any proceeding that would make consummation of the Merger in accordance
with the terms of this Agreement unlawful or that would prevent or delay consummation of the Merger, any and all commercially reasonable steps (including the appeal thereof or the posting of a bond)
necessary to vacate, modify or suspend such injunction or order so as to permit such consummation on a schedule as close as possible to that contemplated by this Agreement. </FONT></DD></DL>
</UL>
</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.6</FONT><FONT
SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;Access</B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Upon reasonable notice, and except as may otherwise be required by applicable Law or the terms of any
relevant agreements with third parties, the Company shall (and the Company shall cause its Subsidiaries to) afford Parent's officers, employees, counsel, accountants and other authorized
representatives ("Representatives") reasonable access, during normal business hours throughout the period prior to the Merger Effective Time, to its properties, books, Contracts and records and,
during such period, the Company shall (and shall cause its Subsidiaries to) provide promptly to Parent all information concerning its business, properties and personnel as Parent or its
Representatives may reasonably request, provided that no investigation pursuant to this Section shall affect or be deemed to modify any representation or warranty made by the Company. All requests for
information made pursuant to this Section shall be directed to an executive officer of the Company or such Person as may be designated by any such officer. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.7</FONT><FONT
SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;Stock Exchange De-listing</B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;The Surviving Company shall use its best efforts to cause the Company
Common Shares to be de-listed from the NASDAQ Stock Market and de-registered under the Exchange Act as soon as practicable following the Merger Effective Time. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.8</FONT><FONT
SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;Publicity</B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;The initial press releases concerning this Agreement and the Merger shall be simultaneous press
releases, approved in advance by the Company and Parent, and thereafter the Company and Parent each shall consult with each other prior to issuing any press releases or otherwise making public
announcements with respect to the Merger and the other transactions contemplated by this Agreement and prior to making any filings with any third party and/or any Governmental Entity (including any
national securities exchange or interdealer quotation service) with respect thereto, except as may be required by Laws or by obligations pursuant to any listing agreement with or rules of any national
securities exchange or interdealer quotation service on which the securities of the Company or Parent are listed or quoted. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.9</FONT><FONT
SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;Expenses</B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;The Surviving Company shall pay all charges and expenses, including those of the Paying Agent in
connection with the transactions contemplated in Section&nbsp;4 and any transfer taxes, conveyance taxes and sales taxes, if any, payable in connection with the consummation of the Merger. Except as
provided in Section&nbsp;8.5(b), all costs, fees and expenses incurred in connection with the </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>20</FONT></P>

<HR NOSHADE>
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<A NAME="page_li4672_1_21"> </A>
<BR>

<P><FONT SIZE=2>Merger,
this Agreement and the transactions contemplated by this Agreement shall be paid by the party incurring such expense. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.10</FONT><FONT
SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;Indemnification</B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;</FONT></P>

<UL>
<UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>(a)</FONT></DT><DD><FONT SIZE=2>Parent
and Surviving Company shall indemnify and hold harmless, to the fullest extent permitted under applicable law (and Parent and Surviving Company shall also advance expenses as
incurred to the fullest extent permitted under applicable law provided the Person to whom expenses are advanced provides any undertaking required under applicable law to repay such advances if it is
ultimately determined that such Person is not entitled to indemnification), each present and former director, officer, and employee of the Company, the Company's current Subsidiaries and those former
Subsidiaries of the Company identified in Exhibit&nbsp;6.10(a) (subject, in the case of such former Subsidiaries, to the limitations set forth in such Exhibit) (collectively, the "Indemnified
Parties") against any reasonable costs or expenses (including reasonable attorneys' fees), judgments, fines, losses, claims, damages or liabilities (collectively, "Costs") incurred in connection with
any claim, action, suit, proceeding or investigation, whether civil, criminal, administrative or investigative, arising out of or pertaining to matters existing or occurring at or prior to the Merger
Effective Time, including the Merger and the other transactions contemplated by this Agreement.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(b)</FONT></DT><DD><FONT SIZE=2>The
provisions of this Section are intended to be for the benefit of, and shall be enforceable by, each of the Indemnified Parties, their heirs and their representatives. </FONT></DD></DL>
</UL>
</UL>
<BR>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.11</FONT><FONT
SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;Takeover Statute</B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;If any Takeover Statute is or may become applicable to the Merger or the other
transactions contemplated by this Agreement, the Company and its Board of Directors shall grant such approvals and take such actions as are necessary so that such transactions may be consummated as
promptly as practicable on the terms contemplated by this Agreement or by the Merger and otherwise act to eliminate or minimize the effects of such statute or regulation on such transactions. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.</FONT><FONT
SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;Conditions</B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1</FONT><FONT
SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;Conditions to Each Party's Obligation to Effect the Merger</B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
respective obligation of each party to effect the Merger is subject to the satisfaction or waiver at or prior to the Merger Effective Time of each of the following conditions: </FONT></P>

<UL>
<UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>(a)</FONT></DT><DD><FONT SIZE=2>Stockholder
Approvals </FONT></DD></DL>
</UL>
<UL>
<UL>

<P><FONT SIZE=2>This
Agreement shall have been duly adopted by holders of Company Common Shares constituting the Company Requisite Vote in accordance with applicable law and the certificate of incorporation and
by-laws of the Company. </FONT></P>

</UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>(b)</FONT></DT><DD><FONT SIZE=2>Regulatory
Consents </FONT></DD></DL>
</UL>
</UL>
<UL>
<UL>
<UL>

<P><FONT SIZE=2>Other
than the filing of the Merger Certificate, all notices, reports and other filings required to be made prior to the Merger Effective Time by the Company or Parent or any of their respective
Subsidiaries with, and all consents, registrations, approvals, permits and authorizations required to be obtained prior to the Merger Effective Time by the Company or Parent or any of their respective
Subsidiaries from, any Governmental Entity (collectively, "Governmental Consents") in connection with the execution and delivery of this Agreement and the consummation of the Merger and the other
transactions contemplated hereby by the Company, Parent and Merger Sub shall have been made or obtained (as the case may be), except those that the failure to make or to obtain are not, individually
or in the aggregate, reasonably likely to have a Company Material Adverse Effect. </FONT></P>

</UL>
</UL>
</UL>
<P ALIGN="CENTER"><FONT SIZE=2>21</FONT></P>

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<A NAME="page_li4672_1_22"> </A>
<UL>
<UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>(c)</FONT></DT><DD><FONT SIZE=2>No
Orders </FONT></DD></DL>
</UL>
<UL>
<UL>

<P><FONT SIZE=2>No
court or Governmental Entity of competent jurisdiction shall have enacted, issued, promulgated, enforced or entered any statute, law, ordinance, rule, regulation, judgment, decree, injunction or
other order (whether temporary, preliminary or permanent) that is in effect and restrains, enjoins or otherwise prohibits consummation of the Merger (collectively, an "Order"). </FONT></P>

</UL>
</UL>
</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.2</FONT><FONT
SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;Conditions to Obligations of Parent and Merger Sub</B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;The obligations of Parent and Merger Sub to effect the
Merger are also subject to the satisfaction or waiver by Parent at or prior to the Merger Effective Time of the following conditions: </FONT></P>

<UL>
<UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>(a)</FONT></DT><DD><FONT SIZE=2>Representations
and Warranties </FONT></DD></DL>
</UL>
</UL>
<UL>
<UL>
<UL>

<P><FONT SIZE=2>The
representations and warranties of the Company set forth in this Agreement shall be true and correct as of the date of this Agreement and as of the Closing Date as though made on and as of such
date and time (except to the extent any such representation and warranty expressly speaks as of an earlier date), and Parent shall have received a certificate signed on behalf of the Company by the
Chairman of the Board and Chief Executive Officer of the Company to such effect. </FONT></P>

</UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>(b)</FONT></DT><DD><FONT SIZE=2>Confirmatory
Due Diligence </FONT></DD></DL>
</UL>
</UL>
<UL>
<UL>
<UL>

<P><FONT SIZE=2>Parent
shall have been afforded sufficient access to the business, personnel, assets, properties and documents of Company and its Subsidiaries to enable it to undertake a due diligence investigation
of sufficient scope and duration to confirm the representations and warranties of the Company herein contained, and shall be satisfied with the results of such investigation. </FONT></P>

</UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>(c)</FONT></DT><DD><FONT SIZE=2>Dissents </FONT></DD></DL>
</UL>
<UL>
<UL>

<P><FONT SIZE=2>Dissenting
Stockholders shall not have perfected their rights under Section&nbsp;262 of the DGCL with respect to 5% or more of the aggregate outstanding shares of the Company Common Shares. </FONT></P>

</UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>(d)</FONT></DT><DD><FONT SIZE=2>Resignations
</FONT></DD></DL>
</UL>
</UL>
<UL>
<UL>
<UL>

<P><FONT SIZE=2>Each
director of the Company shall have submitted his or her unconditional and irrevocable resignation therefrom in a form satisfactory to Parent. </FONT></P>

</UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>(e)</FONT></DT><DD><FONT SIZE=2>Performance
of Obligations of the Company </FONT></DD></DL>
</UL>
<UL>
<UL>

<P><FONT SIZE=2>The
Company shall have performed in all material respects all obligations required to be performed by it under this Agreement at or prior to the Closing Date. </FONT></P>

</UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>(f)</FONT></DT><DD><FONT SIZE=2>Divestiture
of Shrimp Business </FONT></DD></DL>
</UL>
</UL>
<UL>
<UL>
<UL>

<P><FONT SIZE=2>The
Company shall complete the Shrimp Business Divestiture on the terms set forth in the Agreement therefor or otherwise on terms fully satisfactory to Parent. </FONT></P>

</UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>(g)</FONT></DT><DD><FONT SIZE=2>Additional
Agreements
<BR><BR></FONT>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>(i)</FONT></DT><DD><FONT SIZE=2>Termination
and non-compete agreements between the Company and those employees set out in Exhibit&nbsp;7.2(g)(i)&nbsp;hereto (the "Termination and
Non-Compete Agreements") shall have been executed on terms satisfactory to Parent.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(ii)</FONT></DT><DD><FONT SIZE=2>Consulting
agreements between the Company and those Persons set out in Exhibit&nbsp;7.2(g)(ii)&nbsp;(the "Consulting Agreements") shall have been executed on terms
satisfactory to Parent. </FONT></DD></DL>
</DD></DL>
</UL>
</UL>
<P ALIGN="CENTER"><FONT SIZE=2>22</FONT></P>

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<UL>
<UL>
<UL>
<UL>
</UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>(iii)</FONT></DT><DD><FONT SIZE=2>Voting
agreements between Parent and those persons listed on Exhibit&nbsp;7.2(g)(iii)&nbsp;shall remain in full force and effect.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(iv)</FONT></DT><DD><FONT SIZE=2>Written
consent of the other parties to change in control under the contracts listed in section&nbsp;7.2(g)&nbsp;(iv) of the Company Disclosure Letter shall have
been obtained on terms satisfactory to Parent. </FONT></DD></DL>
</UL>
</UL>
</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.3</FONT><FONT
SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;Conditions to Obligation of the Company</B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;The obligations of the Company to effect the Merger are also subject
to the satisfaction or waiver by the Company at or prior to the Merger Effective Time of the following conditions: </FONT></P>

<UL>
<UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>(a)</FONT></DT><DD><FONT SIZE=2>Representations
and Warranties </FONT></DD></DL>
</UL>
</UL>
<UL>
<UL>
<UL>

<P><FONT SIZE=2>The
representations and warranties of Parent and Merger Sub set forth in this Agreement shall be true and correct in all material respects as of the date of this Agreement and as of the date and time
of delivery of the Closing Date as though made on and as of such date and time (except to the extent any such representation and warranty expressly speaks as of an earlier date), and the Company shall
have received certificates signed on behalf of Parent by an officer of Parent, and by Merger Sub by Chief Executive Officer of Merger Sub to such effect. </FONT></P>

</UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>(b)</FONT></DT><DD><FONT SIZE=2>Performance
of Obligations of Parent and Merger Sub </FONT></DD></DL>
</UL>
</UL>
<UL>
<UL>
<UL>

<P><FONT SIZE=2>Each
of Parent and Merger Sub shall have performed in all material respects all material obligations required to be performed by them under this Agreement at or prior to the date and time of delivery
of the Closing Date. </FONT></P>

</UL>
</UL>
</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.</FONT><FONT
SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;Termination</B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1</FONT><FONT
SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;Termination by Mutual Consent</B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;This Agreement may be terminated and the Merger may be abandoned at any time
prior to the Merger Effective Time, whether before or after the adoption of this Agreement by holders of Company Common Shares referred to in Section&nbsp;7.1(b), by mutual written consent of the
Company and Parent. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.2</FONT><FONT
SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;Termination by Either Parent or the Company</B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;This Agreement may be terminated and the Merger may be abandoned
at any time prior to the Merger Effective Time by action of the Board of Directors of either Parent or the Company if (i)&nbsp;the Merger shall not have been consummated by August&nbsp;30, 2003
(the "Termination Date"), whether such date is before or after the adoption of this Agreement by holders of Company Common Shares, (ii)&nbsp;the Company shall not have obtained the Company Requisite
Vote, or (iii)&nbsp;any Order permanently restraining, enjoining or otherwise prohibiting consummation of the Merger shall become final and non-appealable (whether before or after the
adoption of this Agreement by holders of Company Common Shares); provided, however, that the right to terminate this Agreement pursuant to clause&nbsp;(i) above shall not be available to any party
that has breached in any material respect its material obligations under this Agreement in any manner that shall have contributed to the occurrence of the failure of the Merger to be consummated. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.3</FONT><FONT
SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;Termination by the Company</B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;This Agreement may be terminated and the Merger may be abandoned at any time
prior to the Merger Effective Time, whether before or after the adoption of this Agreement by holders of Company Common Shares referred to in Section&nbsp;7.1(b), by action of the Board of Directors
of the Company: </FONT></P>

<UL>
<UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>(a)</FONT></DT><DD><FONT SIZE=2>if
(i)&nbsp;the Board of Directors of the Company authorizes the Company, subject to complying with the terms of this Agreement, to enter into a binding written agreement concerning
a transaction that constitutes a Superior Proposal and the Company notifies Parent in writing that it intends to enter into such an agreement, (ii)&nbsp;Parent does not make, within three business
days of receipt (not counting the day of receipt) of the </FONT></DD></DL>
</UL>
</UL>
<P ALIGN="CENTER"><FONT SIZE=2>23</FONT></P>

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<UL>
<UL>
<UL>

<P><FONT SIZE=2>Company's
written notification of its intention to enter into a binding agreement for a Superior Proposal, an offer that the Board of Directors of the Company determines, in good faith after
consultation with its financial advisors, is at least as favorable, from a financial point of view, to the stockholders of the Company as the Superior Proposal and (iii)&nbsp;the Company upon such
termination pays to Parent in immediately available funds any fees required to be paid pursuant to Section&nbsp;8.5; or </FONT></P>

</UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>(b)</FONT></DT><DD><FONT SIZE=2>if
there has been a material breach by Parent or Merger Sub of any representation, warranty, covenant or agreement contained in this Agreement that is not curable or, if curable, is
not cured within 30&nbsp;days after written notice of such breach is given by the Company to the party committing such breach, and as a result of any such breach or breaches either of the conditions
set forth in Section&nbsp;7.3(a) or (b)&nbsp;would not be satisfied at the Closing. </FONT></DD></DL>
</UL>
</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.4</FONT><FONT
SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;Termination by Parent</B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;This Agreement may be terminated and the Merger may be abandoned at any time prior to
the Merger Effective Time by Parent: </FONT></P>

<UL>
<UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>(a)</FONT></DT><DD><FONT SIZE=2>if
the Board of Directors of the Company shall have withdrawn or adversely modified its approval or recommendation of this Agreement or after an Acquisition Proposal has been made
failed to reconfirm its recommendation of this Agreement within fifteen business days after a written request by Parent to do so.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(b)</FONT></DT><DD><FONT SIZE=2>if
there has been a breach by the Company of any representation, warranty, covenant or agreement contained in this Agreement that is not curable or, if curable, is not cured within
30&nbsp;days after written notice of such breach is given by Parent to the party committing such breach, and as a result of any such breach or breaches either of the conditions set forth in
Section&nbsp;7.2(a) or (e)&nbsp;would not be satisfied at the Closing. </FONT></DD></DL>
</UL>
</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.5</FONT><FONT
SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;Effect of Termination and Abandonment</B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;</FONT></P>

<UL>
<UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>(a)</FONT></DT><DD><FONT SIZE=2>In
the event of termination of this Agreement and the abandonment of the Merger pursuant to this Section&nbsp;8, this Agreement (other than as set forth in Section&nbsp;9.1) shall
become void and of no effect with no liability on the part of any party hereto (or of any of its directors, officers, employees, agents, legal and financial advisors or other representatives).
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(b)</FONT></DT><DD><FONT SIZE=2>In
the event that this Agreement is terminated (i)&nbsp;by the Company pursuant to Section&nbsp;8.3(a) or (ii)&nbsp;by Parent pursuant to Section&nbsp;8.4(a) or
(iii)&nbsp;by either party pursuant to Section&nbsp;8.2(ii), then the Company shall promptly, but in no event later than two business days after the date of such termination or, if applicable, the
event set forth in the proviso below, pay Parent a termination fee of $1.2&nbsp;million by wire transfer of same day funds. The Company acknowledges that the agreements contained in this
Section&nbsp;8.5(b) are an integral part of the transactions contemplated by this Agreement, and that, without these agreements, Parent and Merger Sub would not enter into this Agreement;
accordingly, if the Company fails to promptly pay the amount due pursuant to this Section&nbsp;8.5(b), and, in order to obtain such payment, Parent or Merger Sub commences a suit which results in a
judgment against the Company for the fee set forth in this paragraph&nbsp;(b), the Company shall pay to Parent or Merger Sub its reasonable costs and expenses (including reasonable attorneys' fees)
in connection with such suit, together with interest on the amount of the fee at the prime lending rate of Citibank, N.A. in effect on the date such payment was required to be made. </FONT></DD></DL>
</UL>
</UL>
<P ALIGN="CENTER"><FONT SIZE=2>24</FONT></P>

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<UL>
<UL>
</UL>
</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>9.&nbsp;&nbsp;&nbsp;&nbsp;Miscellaneous and General</B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;</FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.1</FONT><FONT
SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;Survival</B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;This Section&nbsp;9 and the agreements of the Company, Parent and Merger Sub contained in
Sections 6.7 (Stock Exchange De-listing), 6.9 (Expenses) and 6.10 (Indemnification) shall survive the consummation of the Merger. This Section&nbsp;9 and the agreements of the Company,
Parent and Merger Sub contained in Section&nbsp;6.9 (Expenses) and Section&nbsp;8.5 (Effect of Termination and Abandonment) shall survive the termination of this Agreement. All other
representations, warranties, covenants and agreements in this Agreement shall not survive the consummation of the Merger or the termination of this Agreement. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.2</FONT><FONT
SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;Modification or Amendment</B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Subject to the provisions of the applicable law, at any time prior to the Merger
Effective Time, the parties hereto may modify or amend this Agreement, by written agreement executed and delivered by duly authorized officers of Parent and the Company. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.3</FONT><FONT
SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;Waiver of Conditions</B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;The conditions to each of the parties' obligations to consummate the Merger are for the
sole benefit of such party and may be waived by such party in whole or in part to the extent permitted by applicable law. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.4</FONT><FONT
SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;Counterparts</B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;This Agreement may be executed in any number of counterparts, each such
counter-part being deemed to be an original instrument, and all such counterparts shall together constitute the same agreement. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.5</FONT><FONT
SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;Governing Law and Venue; Waiver of Jury Trial</B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;</FONT></P>

<UL>
<UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>(a)</FONT></DT><DD><FONT SIZE=2><B>EXCEPT AS REQUIRED BY MANDATORY PROVISIONS OF THE DGCL, THIS AGREEMENT SHALL BE DEEMED TO BE MADE IN AND IN ALL RESPECTS SHALL BE INTERPRETED, CONSTRUED AND
GOVERNED BY AND IN ACCORDANCE WITH THE LAW OF THE STATE OF NEW YORK WITHOUT REGARD TO THE CONFLICT OF LAW PRINCIPLES THEREOF EXCEPT TO THE EXTENT THAT DELAWARE LAW IS REQUIRED TO BE APPLICABLE UNDER
APPLICABLE CHOICE OF LAW PRINCIPLES.</B></FONT><FONT SIZE=2> The parties hereby irrevocably submit to the jurisdiction of the courts of the State of New York and the Federal courts of the United
States of America, in either case located in the County of New York, New York solely in respect of the interpretation and enforcement of the provisions of this Agreement and of the documents referred
to in this Agreement, and in respect of the transactions contemplated hereby, and hereby waive, and agree not to assert, as a defense in any action, suit or proceeding for the interpretation or
enforcement hereof or of any such document, that it is not subject thereto or that such action, suit or proceeding may not be brought or is not maintainable in said courts or that the venue thereof
may not be appropriate or that this Agreement or any such document may not be enforced in or by such courts, and the parties hereto irrevocably agree that all claims with respect to such action or
proceeding shall be heard and determined in such a New York State or Federal court. The parties hereby consent to and grant any such court jurisdiction over the person of such parties and over the
subject matter of such dispute and agree that mailing of process or other papers in connection with any such action or proceeding in the manner provided in Section&nbsp;9.6 or in such other manner
as may be permitted by law shall be valid and sufficient service thereof.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(b)</FONT></DT><DD><FONT SIZE=2>EACH
PARTY ACKNOWLEDGES AND AGREES THAT ANY CONTROVERSY WHICH MAY ARISE UNDER THIS AGREEMENT IS LIKELY TO INVOLVE COMPLICATED AND DIFFICULT ISSUES, AND THEREFORE EACH SUCH PARTY
HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY RIGHT SUCH PARTY MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO </FONT></DD></DL>
</UL>
</UL>
<P ALIGN="CENTER"><FONT SIZE=2>25</FONT></P>

<HR NOSHADE>
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<A NAME="page_li4672_1_26"> </A>
<UL>
<UL>
<UL>

<P><FONT SIZE=2>THIS
AGREEMENT, OR THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT. EACH PARTY CERTIFIES AND ACKNOWLEDGES THAT (i)&nbsp;NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED,
EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER, (ii)&nbsp;EACH PARTY UNDERSTANDS AND HAS CONSIDERED THE IMPLICATIONS OF
THIS WAIVER, (iii)&nbsp;EACH PARTY MAKES THIS WAIVER VOLUNTARILY, AND (iv)&nbsp;EACH PARTY HAS BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND
CERTIFICATIONS IN THIS SECTION 9.5. </FONT></P>

</UL>
</UL>
</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.6</FONT><FONT
SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;Notices</B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Any notice, request, instruction or other document to be given hereunder by any party to the others
shall be in writing and delivered personally or sent by registered or certified mail return receipt requested, postage prepaid, by overnight courier, or by facsimile: </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;if
to Parent, or Merger Sub: </FONT></P>

<UL>

<P><FONT SIZE=2>Alcan
Balcorp,&nbsp;Inc.<BR>
c/o Alcan Aluminum Corporation<BR>
6060 Parkland Blvd.<BR>
Cleveland, Ohio 44124-4185 U.S.A. </FONT></P>

<P><FONT SIZE=2>Attention:
Charles R. Aley<BR>
Fax: (440)&nbsp;423-6663 </FONT></P>

</UL>

<P><FONT SIZE=2>with
a copy to: </FONT></P>

<UL>

<P><FONT SIZE=2>Alcan&nbsp;Inc.<BR>
1188 Sherbrooke St. West<BR>
Montreal, Quebec<BR>
Canada H3A&nbsp;3G2<BR>
Attention: Corporate Secretary<BR>
Fax: (514)&nbsp;848-8331 </FONT></P>

</UL>

<P><FONT SIZE=2>if
to the Company: </FONT></P>

<UL>

<P><FONT SIZE=2>Baltek
Corporation<BR>
10 Fairway Court<BR>
P.O.&nbsp;Box 195<BR>
Northvale, New Jersey 07647<BR>
U.S.A. </FONT></P>

<P><FONT SIZE=2>Attention:
Jacques Kohn<BR>
fax: (201)&nbsp;387-6631 </FONT></P>

</UL>

<P><FONT SIZE=2>or
to such other persons or addresses as may be designated in writing by the party to receive such notice as provided above. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.7</FONT><FONT
SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;Entire Agreement</B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;This Agreement (including any exhibits hereto), the Company Disclosure Letter and the
Additional Agreements set out in Section&nbsp;7.2(g) constitute the entire agreement, and supersede all other prior agreements, understandings, representations and warranties both written and oral,
among the parties, with respect to the subject matter hereof. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.8</FONT><FONT
SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;No Third Party Beneficiaries</B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Except as provided in Section&nbsp;6.10 (Indemnification), this Agreement is
not intended to confer upon any Person other than the parties hereto any rights or remedies hereunder. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>26</FONT></P>

<HR NOSHADE>
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<A NAME="page_li4672_1_27"> </A>
<BR>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.9</FONT><FONT
SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;Obligations of Parent and of the Company</B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Whenever this Agreement requires a Subsidiary of Parent to take any
action, such requirement shall be deemed to include an undertaking on the part of Parent to cause such Subsidiary to take such action. Whenever this Agreement requires a Subsidiary of the Company to
take any action, such requirement shall be deemed to include an undertaking on the part of the Company to cause such Subsidiary to take such action and, after the Merger Effective Time, on the part of
the Surviving Company to cause such Subsidiary to take such action. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.10</FONT><FONT
SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;Severability</B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;It is the intention of the parties that the provisions of this Agreement shall be deemed
severable and the invalidity or unenforceability of any provision shall not affect the validity or enforceability or the other provisions hereof. It is the intention of the parties that if any
provision of this Agreement, or the application thereof to any Person or any circumstance, is invalid or unenforceable, (a)&nbsp;a suitable and equitable provision shall be substituted therefor in
order to carry out, so far as may be valid and enforceable, the intent and purpose of such invalid or unenforceable provision, and (b)&nbsp;the remainder of this Agreement and the application of
such provision to other Persons or circumstances shall not be affected by such invalidity or unenforceability, nor shall such invalidity or unenforceability affect the validity or enforceability of
such provision, or the application thereof, in any other jurisdiction. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.11</FONT><FONT
SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;Interpretation</B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;The words "hereof," "herein," and "hereunder" and words of similar import, when used in this
Agreement, shall refer to this Agreement as a whole and not to any particular provision of this Agreement. Terms defined in the singular shall have correlative meanings when used in the plural, and
vice versa. The table of contents and headings herein are for convenience of reference only, do not constitute part of this Agreement and shall not be deemed to limit or otherwise affect any of the
provisions hereof. Where a reference in this Agreement is made to a Section or Exhibit, such reference shall be to a Section of or Exhibit to this Agreement unless otherwise indicated. Whenever the
words "include," "includes" or "including" are used in this Agreement, they shall be deemed to be followed by the words "without limitation." </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.12</FONT><FONT
SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;Assignment</B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;This Agreement shall not be assignable by operation of law or otherwise; provided, however, that
Parent may designate, by written notice to the Company, another wholly owned direct or indirect subsidiary in lieu of Merger Sub, in which event all references herein to Merger Sub, as the case may
be, shall be deemed references to such other subsidiary, except that all representations and warranties made herein with respect to Merger Sub as of the date of this Agreement shall be deemed
representations and warranties made with respect to such other subsidiary as of the date of such designation. Any purported assignment made in contravention of this Section&nbsp;9.12 shall be null
and void. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>27</FONT></P>

<HR NOSHADE>
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<P ALIGN="RIGHT"><FONT SIZE=2><B>ANNEX A  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IN WITNESS WHEREOF, this Agreement has been duly executed and delivered by the duly authorized officers of the parties hereto as of the date of this Agreement. </FONT></P>

<!-- User-specified TAGGED TABLE -->
<TABLE WIDTH="100%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="TOP">
<TD COLSPAN=2><FONT SIZE=2>BALTEK CORPORATION</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="43%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="4%"><BR><FONT SIZE=2>By:</FONT></TD>
<TD WIDTH="50%"><FONT SIZE=2><BR>
/s/&nbsp;&nbsp;</FONT><FONT SIZE=2>JACQUES KOHN</FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><HR NOSHADE><FONT SIZE=2> Name: Jacques Kohn<BR>
Title: President and Chief Executive Officer</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="43%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=2><BR><FONT SIZE=2>ALCAN INC.</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="43%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="4%"><BR><FONT SIZE=2>By:</FONT></TD>
<TD WIDTH="50%"><FONT SIZE=2><BR>
/s/&nbsp;&nbsp;</FONT><FONT SIZE=2>DAVID MCAUSLAND</FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><HR NOSHADE><FONT SIZE=2> Name: David McAusland<BR>
Title: Senior Vice President, Mergers and Acquisitions and Chief Legal Officer</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="43%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=2><BR><FONT SIZE=2>ALCAN BALCORP, INC.</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="43%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="4%"><BR><FONT SIZE=2>By:</FONT></TD>
<TD WIDTH="50%"><FONT SIZE=2><BR>
/s/&nbsp;&nbsp;</FONT><FONT SIZE=2>PIERRE CHENARD</FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><HR NOSHADE><FONT SIZE=2> Name: Pierre Chenard<BR>
Title: Vice President</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="43%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
</TR>
</TABLE>
<!-- end of user-specified TAGGED TABLE -->

<HR NOSHADE>
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<!-- TOC_END -->
<P ALIGN="RIGHT"><FONT SIZE=2><B>ANNEX B  </B></FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="lo4672_voting_agreement"> </A>
<A NAME="toc_lo4672_1"> </A>
<BR></FONT><FONT SIZE=2><B>VOTING AGREEMENT    <BR>    </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This Voting Agreement (this "</FONT><FONT SIZE=2><I>Agreement</I></FONT><FONT SIZE=2>"), dated as of 5 March, 2003, among the stockholders listed on the
signature page hereto (each, a "</FONT><FONT SIZE=2><I>Stockholder</I></FONT><FONT SIZE=2>" and, collectively, the "</FONT><FONT SIZE=2><I>Stockholders</I></FONT><FONT SIZE=2>") and
Alcan&nbsp;Inc., a Canadian corporation ("</FONT><FONT SIZE=2><I>Parent</I></FONT><FONT SIZE=2>"). </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS,
simultaneously with the execution of this Agreement, Baltek Corporation, a Delaware corporation (the "</FONT><FONT SIZE=2><I>Company</I></FONT><FONT SIZE=2>"), and Parent are
entering into an Agreement and Plan of Merger (the "</FONT><FONT SIZE=2><I>Merger Agreement</I></FONT><FONT SIZE=2>"), dated as of the date hereof, providing, among other things, for the merger of a
subsidiary of Parent with and into the Company and the exchange of shares of Company Common Shares (as defined below) for the right to receive the Merger Consideration (as defined in the Merger
Agreement); </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS,
the respective Boards of Directors of the Company, Parent and Merger Sub have approved and adopted the Merger Agreement and the transactions contemplated thereby; </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS,
as a condition to, and in consideration for Parent's willingness to enter into the Merger Agreement and to consummate the transactions contemplated thereby, Parent has required
that the Stockholders enter into this Agreement; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NOW
THEREFORE, in consideration of the foregoing and the mutual premises, representations, warranties, covenants and agreements contained herein and in the Merger Agreement, the parties
hereto, intending to be legally bound, hereby agree as follows: </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><I>Certain Definitions.</I></FONT></P>

<UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;For
purposes of this Agreement, all capitalized terms used but not otherwise defined herein shall have the respective meanings given to such terms in the Merger
Agreement. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;For
purposes of this Agreement, "</FONT><FONT SIZE=2><I>beneficially own</I></FONT><FONT SIZE=2>" or "</FONT><FONT SIZE=2><I>beneficial
ownership</I></FONT><FONT SIZE=2>" with respect to any securities shall mean having "beneficial ownership" of such securities (as determined pursuant to Rule&nbsp;13d-3 under the
Exchange Act). </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;For
purposes of this Agreement, the following terms shall have the following meanings: </FONT></P>

</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Company Common Shares</I></FONT><FONT SIZE=2>" means the Company's shares of common stock, par value $1.00 per share. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Stockholder's Subject Shares</I></FONT><FONT SIZE=2>" shall mean, with respect to a particular Stockholder, the number of shares of Subject Shares set forth
opposite such Stockholder's name on the schedule attached hereto as Exhibit&nbsp;A. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"</FONT><FONT
SIZE=2><I>Transfer</I></FONT><FONT SIZE=2>" means, with respect to any security, the sale, transfer, pledge, hypothecation, assignment or constructive sale or other
disposition of such security or the record or beneficial ownership thereof, the offer to make such a sale, transfer, pledge, hypothecation, assignment, constructive sale or other disposition, and each
agreement, arrangement or understanding, whether or not in writing, to effect any of the foregoing. The term "</FONT><FONT SIZE=2><I>constructive sale</I></FONT><FONT SIZE=2>" means a short sale with
respect to such security, entering into or acquiring an offsetting derivative contract with respect to such security, entering into or acquiring a futures or forward contract to deliver such security
or entering into any hedging, swap or other transaction that is designed to or which reasonably could be expected to lead to or result in a sale or disposition of, or reduction of economic risk with
respect to, such security; </FONT><FONT SIZE=2><I>provided, however,</I></FONT><FONT SIZE=2> that the term "constructive sale" shall not include transactions involving the purchase and sale of
securities tracking a broad based stock index. </FONT></P>

<HR NOSHADE>
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<A NAME="page_lo4672_1_2"> </A>
<BR>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><I>Representations, Warranties and Covenants of Stockholder.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Each Stockholder, individually and not jointly or
severally, hereby represents and warrants as follows: </FONT></P>

<UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><I>Title.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;As of the date hereof, such Stockholder is the sole record or beneficial owner of such Stockholder's
Subject Shares. Such Stockholder is the lawful owner of such Stockholder's Subject Shares, free and clear of all liens, claims, charges, security interests or other encumbrances. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><I>Right to Vote.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Except as set forth in the agreement between the Company, Jacques Kohn, Jean Kohn and Bernard
Kohn, dated March&nbsp;5, 2001 (the "March&nbsp;5 Agreement"), such Stockholder has, with respect to all such Stockholder's Subject Shares, and will have at the Stockholders Meeting, sole voting
power, sole power of disposition, sole power to issue instructions with respect to the matters set forth in Section&nbsp;4 hereof and to fulfill such Stockholder's obligations under such Section and
sole power to agree to all matters set forth in this Agreement, in each case with no limitations, qualifications or restrictions on such rights. Such Stockholder shall not take any action or grant any
person any proxy (revocable or irrevocable) or power-of-attorney with respect to such Stockholder's Subject Shares inconsistent with such Stockholder's obligations as provided
by Sections 4 and 5 hereof. Such Stockholder hereby revokes any and all proxies with respect to such Stockholder's Subject Shares. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><I>Authority.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Except as set forth in the March&nbsp;5 Agreement, such Stockholder has the legal power,
authority, legal capacity and right to execute and deliver, and to perform such Stockholder's obligations under, this Agreement. No other proceedings or actions on the part of such Stockholder are
necessary to authorize the execution, delivery or performance of this Agreement or the consummation of the transactions contemplated hereby. This Agreement has been duly and validly executed and
delivered by such Stockholder and constitutes a valid and binding agreement of such Stockholder enforceable against such Stockholder in accordance with its terms, subject to bankruptcy, insolvency,
fraudulent transfer, reorganization, moratorium and similar laws of general applicability relating to or affecting creditors' rights and to general equity and fiduciary principles. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><I>Conflicting Instruments.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;As of the date hereof, neither the execution and delivery of this Agreement nor the
performance by such Stockholder of such Stockholder's agreements and obligations hereunder will result in any breach or violation of, or be in conflict with or constitute a default under, any term of
any agreement, judgment, injunction, order, decree, law or regulation to which such Stockholder is a party or by which such Stockholder (or any of such Stockholder's assets) is bound or subject. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><I>Parent's Reliance.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Such Stockholder understands and acknowledges that Parent is entering into the Merger
Agreement in reliance upon such Stockholder's execution, delivery and performance of this Agreement. </FONT></P>

</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><I>Restriction on Transfer; Other Restrictions.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Each Stockholder hereby agrees that, without the prior written
consent of Parent, it will not, from the date hereof, Transfer or agree to Transfer (i)&nbsp;any of such Stockholder's Subject Shares, except (A)&nbsp;as otherwise permitted by the Merger
Agreement, (B)&nbsp;Transfers by operation of law if the transferee remains, or agrees in writing to remain, bound by the terms of this Agreement, (C)&nbsp;Transfers as a </FONT> <FONT SIZE=2><I>bona fide</I></FONT><FONT SIZE=2> gift or gifts if the
donee or donees thereof agrees in writing to be bound by the terms of this Agreement, (D)&nbsp;Transfers to any sibling
or any other member of such Stockholder's immediate family, any of such Stockholder's lineal descendants or any trust for the benefit of any of them, if the recipient agrees in writing to be bound by
the terms of this Agreement and (E)&nbsp;to the extent such Stockholder is a corporate entity, Transfers (x)&nbsp;not involving a change in beneficial ownership, (y)&nbsp;involving the
distribution without consideration of such securities by such Stockholder to any of its partners, members or retired partners or members or, to the estate of any of its partners, members or retired
partners or members, or any of its stockholders (z)&nbsp;to any individual or entity controlled by, controlling or under common control with such Stockholder or any individual or entity with respect
to which such Stockholder (or any person controlled by, controlling or </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>2</FONT></P>

<HR NOSHADE>
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<A NAME="page_lo4672_1_3"> </A>

<P><FONT SIZE=2>under
common control with such Stockholder) has the power to direct investment decisions, in each case if the recipient agrees in writing to be bound by the terms of this Agreement. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><I>Agreement to Vote.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Each Stockholder hereby irrevocably and unconditionally agrees to vote or to cause to be
voted, or provide a consent with respect to, all of such Stockholder's Subject Shares at the Stockholders Meeting and at any other annual or special meeting of stockholders of the Company or action by
written consent where such matters arise (a)&nbsp;in favor of the Merger and the Merger Agreement and approval of the terms thereof and (b)&nbsp;against, and such Stockholder will not consent to,
(i)&nbsp;approval of any Acquisition Proposal or any acquisition agreement or similar agreement related to an Acquisition Proposal, (ii)&nbsp;any change in the persons who constitute the Board of
Directors of the Company that is not approved in advance by at least a majority of the persons who were directors of the Company as of the date hereof (or their successors who were so approved) or
(iii)&nbsp;any other action or proposal involving the Company or any of its Subsidiaries that is intended, or could reasonably be expected, to prevent, impede, interfere with, delay, postpone or
adversely affect the transactions contemplated by the Merger Agreement. Any such vote shall be cast or consent shall be given in accordance with such procedures relating thereto as shall ensure that
it is duly counted for purposes of determining that a quorum is present and for purposes of recording the results of such vote or consent. Notwithstanding anything to the contrary in this Agreement or
in the Merger Agreement, the obligations of the Stockholders specified in this Section&nbsp;4 shall not be limited or otherwise affected by the commencement, disclosure, announcement or submission
to the Company of any Acquisition Proposal, or by any change of recommendation of the Company's Board of Directors. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><I>Irrevocable Proxy.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;In furtherance of the transactions contemplated hereby and by the Merger Agreement, and in
order to secure the performance of each Stockholder's duties under this Agreement, each Stockholder hereby grants to Parent and its designees, an irrevocable proxy, or, if applicable, a power of
attorney, and irrevocably appoints Parent or its designees, with full power of substitution, such Stockholder's attorney and proxy to vote or, if applicable, to give consent with respect to, all of
such Stockholder's Subject Shares, with regard to any of the matters referred to in Section&nbsp;4 above at the Stockholders Meeting, however called, or in connection with any action by written
consent by the stockholders of the Company. Each Stockholder acknowledges and agrees that such proxy is coupled with an interest, constitutes, among other things, an inducement for Parent to enter
into the Merger
Agreement, is irrevocable and shall not be terminated by operation of law or otherwise upon the occurrence of any event and that no subsequent proxies with respect to such Stockholder's Subject Shares
shall be given (and if given shall not be effective). The power of attorney granted by each Stockholder is a durable power of attorney and shall survive the dissolution, bankruptcy, death or
incapacity of such Stockholder. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><I>No Solicitation.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;From and after the date hereof, each Stockholder agrees that neither such Stockholder nor
any of such Stockholder's agents or representatives shall, and that such Stockholder shall direct and use such Stockholder's best efforts to cause such Stockholder's agents and representatives
(including any investment banker, attorney or accountant retained by Stockholder) not to, directly or indirectly, initiate, solicit, encourage or otherwise facilitate any inquiries or the making of
any Acquisition Proposal. Such Stockholder further agrees that neither such Stockholder nor any of such Stockholder's agents or representatives shall, and that such Stockholder shall direct and use
such Stockholder's best efforts to cause such Stockholder's agents and representatives (including any investment banker, attorney or accountant retained by Stockholder) not to, directly or indirectly,
engage in any negotiations concerning, or provide any confidential information or data to, or have any discussions with, any Person relating to an Acquisition Proposal, or otherwise entertain or
facilitate any effort or attempt to make or implement an Acquisition Proposal. Nothing in this Section&nbsp;6 shall affect the ability of such Stockholder or any of such Stockholder's agents or
representatives to take any action which is permissible for such Person to take under the Merger Agreement. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>3</FONT></P>

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<P><FONT SIZE=2><A
NAME="page_lq4672_1_4"> </A> </FONT> <FONT SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT SIZE=2><I>Fiduciary Duties of Directors.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding anything herein to the contrary, nothing herein shall
affect
the ability of Stockholders who are directors of the Company ("</FONT><FONT SIZE=2><I>Stockholder Directors</I></FONT><FONT SIZE=2>") to take any action as directors of the Company as such director
may determine after consultation with appropriate counsel to be necessary to comply with the fiduciary duties as directors of the Company. Such Stockholder Directors are entering into this Agreement
solely in their capacity as stockholders of the Company, and not as directors of the Company. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;Miscellaneous.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;</FONT></P>

<UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;Entire Agreement.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;This Agreement constitutes the entire agreement among the parties with respect to the
subject matter hereof and is not intended to confer upon any person other than the parties hereto any rights or remedies hereunder. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;Costs and Expenses.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;All costs and expenses incurred in connection with this Agreement and the transactions
contemplated hereby shall be paid by the party incurring such expenses. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;Invalid Provisions.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;If any provision of this Agreement shall be invalid or unenforceable under applicable
law, such provision shall be ineffective to the extent of such invalidity or unenforceability only, without it affecting the remaining provisions of this Agreement. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;Execution in Counterparts.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;This Agreement may be executed in counterparts transmitted and delivered by
facsimile each of which shall be an original with the same effect as if the signatures hereto and thereto were upon the same instrument. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;Specific Performance.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Each Stockholder agrees with Parent that if for any reason such Stockholder fails to
perform any of such Stockholder's agreements or obligations under this Agreement, irreparable harm or injury to Parent would be caused as to which money damages would not be an adequate remedy.
Accordingly, such Stockholder agrees that, in seeking to enforce this Agreement against such Stockholder, Parent shall be entitled, in addition to any other remedy available at law, equity or
otherwise, to specific performance and injunctive and other equitable relief. The provisions of this Section&nbsp;8(e) are without prejudice to any other rights or remedies, whether at law or in
equity, that Parent may have against such Stockholder for any failure to perform any of such Stockholder's agreements or obligations under this Agreement. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;Amendments; Termination.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;</FONT></P>

<UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;This
Agreement, including this Section&nbsp;8(f), may not be modified, amended, altered or supplemented, except that this Agreement may be modified, amended, altered
or supplemented, as between Parent and any particular Stockholder, upon the execution and delivery of a written agreement executed by Parent and such Stockholder. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;The
provisions of this Agreement (other than Sections 3 and 8)&nbsp;shall terminate upon the earliest to occur of (A)&nbsp;the consummation of the Merger and
(B)&nbsp;the termination of the Merger Agreement. The provisions of Section&nbsp;3 and 8 of this Agreement shall terminate upon the termination of the Merger Agreement. </FONT></P>

</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;Governing Law and Venue.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;EXCEPT AS REQUIRED BY MANDATORY PROVISIONS OF THE DELAWARE GENERAL CORPORATION LAW,
AS AMENDED, THIS AGREEMENT SHALL BE DEEMED TO BE MADE IN AND IN ALL RESPECTS SHALL BE INTERPRETED, CONSTRUED AND GOVERNED BY AND IN ACCORDANCE WITH THE LAW OF THE STATE OF NEW YORK WITHOUT REGARD TO
THE CONFLICT OF LAW PRINCIPLES THEREOF. The parties hereby irrevocably submit to the jurisdiction of the courts of the State of New York, New York County, and the Federal courts of the United States
of America located in the State of New York, New York County, solely in respect of the interpretation and enforcement of the provisions of this Agreement and of the documents referred to in this
Agreement, and in respect of the transactions contemplated hereby, </FONT></P>

</UL>
<P ALIGN="CENTER"><FONT SIZE=2>4</FONT></P>

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<A NAME="page_lq4672_1_5"> </A>
<UL>

<P><FONT SIZE=2>and
hereby waive, and agree not to assert, as a defense in any action, suit or proceeding for the interpretation or enforcement hereof or of any such document, that it is not subject thereto or that
such action, suit or proceeding may not be brought or is not maintainable in said courts or that the venue thereof may not be appropriate or that this Agreement or any such document may not be
enforced in or by such courts, and the parties hereto irrevocably agree that all claims with respect to such action or proceeding shall be heard and determined in such a New York State or Federal
court. The parties hereby consent to and grant any such court jurisdiction over the person of such parties and over the subject matter of such dispute and agree that mailing of process or other papers
in connection with any such action or proceeding in the manner provided in Section&nbsp;8(k) or in such other manner as may be permitted by law shall be valid and sufficient service thereof. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;Waiver of Jury Trial.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;EACH PARTY ACKNOWLEDGES AND AGREES THAT ANY CONTROVERSY WHICH MAY ARISE UNDER THIS
AGREEMENT IS LIKELY TO INVOLVE COMPLICATED AND DIFFICULT ISSUES, AND THEREFORE EACH SUCH PARTY HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY RIGHT SUCH PARTY MAY HAVE TO A TRIAL BY JURY IN RESPECT
OF ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT, OR THE TRANSACTIONS
CONTEMPLATED BY THIS AGREEMENT. EACH PARTY CERTIFIES AND ACKNOWLEDGES THAT (i)&nbsp;NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER
PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER, (ii)&nbsp;EACH PARTY UNDERSTANDS AND HAS CONSIDERED THE IMPLICATIONS OF THIS WAIVER, (iii)&nbsp;EACH PARTY MAKES
THIS WAIVER VOLUNTARILY, AND (iv)&nbsp;EACH PARTY HAS BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 8(h). </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;Successors and Assigns.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;The provisions of this Agreement shall be binding upon and inure to the benefit of
the parties hereto and their respective legal successors (including, in the case of each Stockholder, any executors, administrators, estates, legal representatives and heirs of such Stockholder) and
permitted assigns; provided that, except as otherwise provided in this Agreement, no party may assign, delegate or otherwise transfer any of its rights or obligations under this Agreement. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;Further Assurances.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;From time to time, at the other party's request, and without further consideration, each
party hereto shall execute and deliver, or cause to be executed and delivered, such additional or further documents and take lawful actions of a ministerial nature as may be necessary and appropriate
for the purpose of effectively carrying out the transactions contemplated by this Agreement. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k)</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;Notices.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;All notices and other communications given or made pursuant hereto shall be in writing and shall be
deemed to have been duly given or made as of the date of receipt and shall be delivered personally or sent by overnight courier or sent by telecopy, to the Parties at the following addresses or
telecopy numbers (or at such other address or telecopy number for a party as shall be specified by like notice): </FONT></P>

<UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;if
to a Stockholder, at the address of such Stockholder set forth on Exhibit&nbsp;A attached hereto or at such other address that such Stockholder may have provided in
writing to Parent; and </FONT></P>

</UL>
</UL>
<P ALIGN="CENTER"><FONT SIZE=2>5</FONT></P>

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<A NAME="page_lq4672_1_6"> </A>
<UL>
<UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;if
to Parent: </FONT></P>

<UL>
<UL>

<P><FONT SIZE=2>Alcan
Aluminum Corporation<BR>
6060 Parkland Blvd.<BR>
Cleveland, Ohio 44124-4185<BR>
U.S.A. </FONT></P>

<P><FONT SIZE=2>with
a copy to: </FONT></P>

<P><FONT SIZE=2>Sullivan&nbsp;&amp;
Cromwell<BR>
1870 Embarcadero Road<BR>
Palo Alto, California 94303<BR>
Attention: Scott D. Miller<BR>
Facsimile: (650)&nbsp;461-5700 </FONT></P>

</UL>
</UL>
</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l)</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;Effectiveness.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding anything herein to the contrary, this Agreement shall only become effective
upon the execution by the Company of the Merger Agreement. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m)</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;Individual Obligations.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Each Stockholder's obligations under this Agreement are individual and not joint or
several obligations and no Stockholder shall have any liability to Parent for the performance or non-performance by any other Stockholder under this Agreement. </FONT></P>

</UL>
<P ALIGN="CENTER"><FONT SIZE=2>6</FONT></P>

<HR NOSHADE>
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<A NAME="page_lq4672_1_7"> </A>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IN
WITNESS WHEREOF, the parties hereto have executed this Stockholders Agreement as of the date first written above. </FONT></P>

<!-- User-specified TAGGED TABLE -->
<TABLE WIDTH="100%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="TOP">
<TD WIDTH="39%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2><FONT SIZE=2>ALCAN&nbsp;INC.</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="39%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="4%"><BR><FONT SIZE=2>By:</FONT></TD>
<TD WIDTH="54%"><FONT SIZE=2><BR>
/s/&nbsp;&nbsp;</FONT><FONT SIZE=2>PIERRE CHENARD</FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="39%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="54%"><HR NOSHADE><FONT SIZE=2> Name:&nbsp;&nbsp;Pierre Chenard<BR>
Title:&nbsp;&nbsp;&nbsp;&nbsp;Deputy Chief Legal Officer</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="39%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD COLSPAN=2><BR><FONT SIZE=2>STOCKHOLDERS:</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="39%"><BR><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD COLSPAN=2><FONT SIZE=2><BR>
/s/&nbsp;&nbsp;</FONT><FONT SIZE=2>JACQUES KOHN</FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><HR NOSHADE><FONT SIZE=2> Jacques Kohn</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="39%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD COLSPAN=2><FONT SIZE=2><BR>
/s/&nbsp;&nbsp;</FONT><FONT SIZE=2>JEAN KOHN</FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><HR NOSHADE><FONT SIZE=2> Jean Kohn</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="39%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD COLSPAN=2><BR><FONT SIZE=2>BERNARD KOHN REVOCABLE LIVING TRUST</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="39%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="4%"><BR><FONT SIZE=2>By:</FONT></TD>
<TD WIDTH="54%"><FONT SIZE=2><BR>
/s/&nbsp;&nbsp;</FONT><FONT SIZE=2>BERNARD KOHN</FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="39%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="54%"><HR NOSHADE><FONT SIZE=2> Name:&nbsp;&nbsp;Bernard Kohn<BR>
Title:&nbsp;&nbsp;&nbsp;&nbsp;Trustee</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="39%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD COLSPAN=2><FONT SIZE=2><BR>
BERNARD KOHN IRREVOCABLE DESCENDANTS TRUST</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="39%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2><BR>
By:</FONT></TD>
<TD WIDTH="54%"><FONT SIZE=2><BR>
/s/&nbsp;&nbsp;</FONT><FONT SIZE=2>BERNARD KOHN</FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="39%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="54%"><HR NOSHADE><FONT SIZE=2> Name:&nbsp;&nbsp;Bernard Kohn<BR>
Title:&nbsp;&nbsp;&nbsp;&nbsp;Trustee</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="39%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2><BR>
By:</FONT></TD>
<TD WIDTH="54%"><FONT SIZE=2><BR>
/s/&nbsp;&nbsp;</FONT><FONT SIZE=2>JACQUES KOHN</FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="39%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="54%"><HR NOSHADE><FONT SIZE=2> Name:&nbsp;&nbsp;Jacques Kohn<BR>
Title:&nbsp;&nbsp;&nbsp;&nbsp;Trustee</FONT></TD>
</TR>
</TABLE>
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<P ALIGN="CENTER"><FONT SIZE=2>7</FONT></P>

<HR NOSHADE>
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<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="page_lr4672_1_1"> </A> </FONT></P>

<!-- TOC_END -->
<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="lr4672_exhibit_a"> </A>
<A NAME="toc_lr4672_1"> </A>
<BR></FONT><FONT SIZE=2><B>EXHIBIT A    <BR>    </B></FONT></P>

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<DIV ALIGN="CENTER"><TABLE WIDTH="80%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="BOTTOM">
<TH WIDTH="73%" ALIGN="LEFT"><FONT SIZE=1><B>Stockholder Name and Address<BR> </B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH WIDTH="25%" ALIGN="CENTER"><FONT SIZE=1><B>Number of Stockholder's<BR>
Subject Shares</B></FONT><HR NOSHADE></TH>
</TR>
<TR VALIGN="BOTTOM">
<TD WIDTH="73%"><FONT SIZE=2>Jacques Kohn</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="25%" ALIGN="RIGHT"><FONT SIZE=2>469,565</FONT></TD>
</TR>
<TR VALIGN="BOTTOM">
<TD WIDTH="73%"><FONT SIZE=2>Jean Kohn</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="25%" ALIGN="RIGHT"><FONT SIZE=2>469,565</FONT></TD>
</TR>
<TR VALIGN="BOTTOM">
<TD WIDTH="73%"><FONT SIZE=2>Bernard Kohn Revocable Living Trust</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="25%" ALIGN="RIGHT"><FONT SIZE=2>85,820</FONT></TD>
</TR>
<TR VALIGN="BOTTOM">
<TD WIDTH="73%"><FONT SIZE=2>Bernard Kohn Irrevocable Descendants Trust</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="25%" ALIGN="RIGHT"><FONT SIZE=2>47,057</FONT></TD>
</TR>
<TR VALIGN="BOTTOM">
<TD WIDTH="73%"><FONT SIZE=2><BR>
All Stockholders' addresses are<BR>
C/o<BR>
Baltek Corporation<BR>
10 Fairway Court<BR>
Northvale, N.J. 07647</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="25%" ALIGN="RIGHT"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
</TR>
</TABLE></DIV>
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<P ALIGN="CENTER"><FONT SIZE=2>A-1</FONT></P>

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NAME="page_lt4672_1_1"> </A> </FONT></P>

<!-- TOC_END -->
<P ALIGN="RIGHT"><FONT SIZE=2><B>ANNEX C  </B></FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="lt4672_phoenix_securities_corp._a_sub__pho03839"> </A>
<A NAME="toc_lt4672_1"> </A>
<BR></FONT><FONT SIZE=2><B>Phoenix Securities Corp.<BR>  </B></FONT><FONT SIZE=2><I>A Subsidiary of Laidlaw Global Corp.<BR>  </I></FONT><FONT SIZE=2>575 Madison Avenue, 10th Floor<BR>  New York, NY 10022<BR>  Tel: (212)&nbsp;937-8465<BR>  Fax:
(212)&nbsp;937-8470    <BR></FONT></P>

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<TR VALIGN="TOP">
<TD WIDTH="66%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="30%"><FONT SIZE=2>March&nbsp;4, 2003</FONT></TD>
</TR>
</TABLE>
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<P><FONT SIZE=2>Board
of Directors </FONT></P>

<P><FONT SIZE=2>Baltek
Corporation </FONT></P>

<P><FONT SIZE=2>10
Fairway Court </FONT></P>

<P><FONT SIZE=2>P.O.&nbsp;Box
195 </FONT></P>

<P><FONT SIZE=2>Northvale,
NJ 07647 </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
have been told by Baltek Corporation ("Baltek" or the "Company") that Baltek, Alcan,&nbsp;Inc. ("Alcan") and Alcan Balcorp.,&nbsp;Inc. have entered into an Agreement and Plan of
Merger (the "Agreement") dated as of and supplied to us by Baltek, as a result of which, subject to certain terms and conditions, Alcan will acquire all of the outstanding shares of Common Stock of
Baltek for a cash consideration of $15.17 per share. The "bid" price for Baltek common stock at the close of market yesterday was $8.07 per share. The terms and conditions of the Merger are more fully
set forth in the Agreement. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;You
have asked for our opinion as to whether the Agreement is fair to the shareholders of Baltek from a financial point of view. For purposes of the opinion set forth herein, we have: </FONT></P>

<UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>(i)</FONT></DT><DD><FONT SIZE=2>reviewed
certain publicly available financial statements and other information of Baltek;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(ii)</FONT></DT><DD><FONT SIZE=2>reviewed
the reported prices and trading activity for shares of the Common Stock of Baltek;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(iii)</FONT></DT><DD><FONT SIZE=2>discussed
with senior executives of Baltek the past and current operations and financial condition and the prospects of Baltek;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(iv)</FONT></DT><DD><FONT SIZE=2>reviewed
the financial terms, to the extent publicly available, of certain comparable financing transactions;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(v)</FONT></DT><DD><FONT SIZE=2>discussed
the rationale for the Merger and the strategic, financial and operational benefits anticipated from the Merger with the senior management of Baltek;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(vi)</FONT></DT><DD><FONT SIZE=2>reviewed
the Merger Agreement dated March&nbsp;4, 2003; and
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(vii)</FONT></DT><DD><FONT SIZE=2>performed
such other analyses and considered such other factors as we deemed appropriate. </FONT></DD></DL>
</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our
opinion evaluates the Merger from a financial perspective only. We have not performed any independent evaluation of the intellectual property or other assets of the Company. We have
assumed and relied upon, without independent verification, the accuracy and completeness of the information reviewed by us and provided to us by Baltek for the purposes of this opinion. With respect
to the internal financial statements and other financial and operating data and discussions relating to strategic, financial and operational benefits anticipated from the Merger provided by Baltek, we
have assumed that they have been reasonably prepared on bases reflecting the best currently available estimates and judgments of the prospects of Baltek. We have relied upon, without independent
verification, the assessment by the management of Baltek of the benefits expected to result from the Merger. We have also relied upon, without independent verification, the assessment by the
management of Baltek of the </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>1</FONT></P>

<HR NOSHADE>
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<A NAME="page_lt4672_1_2"> </A>
<BR>

<P><FONT SIZE=2>Company's
technologies and products, and the validity of, and risks associated with, the Company's existing and future products and technologies. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
have not made any independent valuation or appraisal of the assets or liabilities or technology of the Company, nor have we been furnished with any such appraisals. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
have not participated in the negotiation of the Merger, provided any legal or other advice with respect to the Merger or proposed any possible alternatives to the Merger. Our opinion
is based on financial, economic, market and other conditions as in effect on, and the information made available to us as of, the date hereof. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This
letter is solely for the benefit of the Board of Directors of Baltek and may not be used for any other purpose or disseminated to any other person without our prior written consent;
provided that the terms of this opinion may be included in Baltek's proxy statement mailed to the stockholders in connection with the merger. In addition, this opinion does not in any manner address
the prices at which the Baltek Common Stock will actually trade at any time, and we express no recommendation or opinion as to how the Directors or stockholders of Baltek should vote at their Board of
Directors or stockholders' meeting held in connection with the Merger. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Based
upon and subject to the foregoing, we are of the opinion on the date hereof that the Agreement is fair from a financial point of view to the stockholders of Baltek Corporation. </FONT></P>

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&nbsp;</FONT></TD>
<TD WIDTH="46%"><FONT SIZE=2><BR>
Very truly yours,</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="47%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="46%"><FONT SIZE=2><BR>
/s/&nbsp;&nbsp;</FONT><FONT SIZE=2>HARIT JOLLY</FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><HR NOSHADE><FONT SIZE=2> Harit Jolly<BR>
President<BR>
Phoenix Securities Corp.</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
</TR>
</TABLE>
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<P ALIGN="CENTER"><FONT SIZE=2>2</FONT></P>

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<P ALIGN="RIGHT"><FONT SIZE=2><A
NAME="page_lv4672_1_1"> </A> </FONT></P>

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<P ALIGN="RIGHT"><FONT SIZE=2><B>ANNEX D  </B></FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="lv4672_general_corporation_law_of_the_state_of_delaware"> </A>
<A NAME="toc_lv4672_1"> </A>
<BR></FONT><FONT SIZE=2><B>GENERAL CORPORATION LAW OF THE STATE OF DELAWARE    <BR>    </B></FONT></P>

<P><FONT SIZE=2><B>Section&nbsp;262.&nbsp;&nbsp;&nbsp;&nbsp;Appraisal Rights.  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;Any
stockholder of a corporation of this State who holds shares of stock on the date of the making of a demand pursuant to subsection (d)&nbsp;of this section with
respect to such shares, who continuously holds such shares through the effective date of the merger or consolidation, who has otherwise complied with subsection (d)&nbsp;of this section and who has
neither voted in favor of the merger or consolidation nor consented thereto in writing pursuant to &sect; 228 of this title shall be entitled to an appraisal by the Court of Chancery of the
fair value of the stockholder's shares of stock under the circumstances described in subsections (b)&nbsp;and (c)&nbsp;of this section. As used in this section, the word "stockholder" means a
holder of record of stock in a stock corporation and also a member of record of a nonstock corporation; the words "stock" and "share" mean and include what is ordinarily meant by those words and also
membership or membership interest of a member of a nonstock corporation; and the words "depository receipt" mean a receipt or other instrument issued by a depository representing an interest in one or
more shares, or fractions thereof, solely of stock of a corporation, which stock is deposited with the depository. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;Appraisal
rights shall be available for the shares of any class or series of stock of a constituent corporation in a merger or consolidation to be effected pursuant to
&sect; 251 (other than a merger effected pursuant to &sect; 251(g) of this title), &sect; 252, &sect; 254, &sect; 257, &sect;258, &sect; 263 or
&sect; 264 of this title: </FONT></P>

<UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;&nbsp;Provided,
however, that no appraisal rights under this section shall be available for the shares of any class or series of stock, which stock, or depository receipts in
respect thereof, at the record date fixed to determine the stockholders entitled to receive notice of and to vote at the meeting of stockholders to act upon the agreement of merger or consolidation,
were either (i)&nbsp;listed on a national securities exchange or designated as a national market system security on an interdealer quotation system by the National Association of Securities
Dealers,&nbsp;Inc. or (ii)&nbsp;held of record by more than 2,000 holders; and further provided that no appraisal rights shall be available for any shares of stock of the constituent corporation
surviving a merger if the merger did not require for its approval the vote of the stockholders of the surviving corporation as provided in subsection (f)&nbsp;of &sect; 251 of this title. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;&nbsp;Notwithstanding
paragraph&nbsp;(1) of this subsection, appraisal rights under this section shall be available for the shares of any class or series of stock of a
constituent corporation if the holders thereof are required by the terms of an agreement of merger or consolidation pursuant to &sect;&sect; 251, 252, 254, 257, 258, 263 and 264 of this
title to accept for such stock anything except: </FONT></P>

<UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.&nbsp;&nbsp;Shares
of stock of the corporation surviving or resulting from such merger or consolidation, or depository receipts in respect thereof; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.&nbsp;&nbsp;Shares
of stock of any other corporation, or depository receipts in respect thereof, which shares of stock (or depository receipts in respect thereof) or depository
receipts at the effective date of the merger or consolidation will be either listed on a national securities exchange or designated as a national market system security on an interdealer quotation
system by the National Association of Securities Dealers,&nbsp;Inc. or held of record by more than 2,000 holders; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c.&nbsp;&nbsp;Cash
in lieu of fractional shares or fractional depository receipts described in the foregoing subparagraphs a. and b. of this paragraph; or </FONT></P>

</UL>
</UL>
<P ALIGN="CENTER"><FONT SIZE=2>1</FONT></P>

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<UL>
<UL>
<BR>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d.&nbsp;&nbsp;Any
combination of the shares of stock, depository receipts and cash in lieu of fractional shares or fractional depository receipts described in the foregoing
subparagraphs a., b. and c. of this paragraph. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)&nbsp;&nbsp;In
the event all of the stock of a subsidiary Delaware corporation party to a merger effected under &sect; 253 of this title is not owned by the parent
corporation immediately prior to the merger, appraisal rights shall be available for the shares of the subsidiary Delaware corporation. </FONT></P>

</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;Any
corporation may provide in its certificate of incorporation that appraisal rights under this section shall be available for the shares of any class or series of its
stock as a result of an amendment to its certificate of incorporation, any merger or consolidation in which the corporation is a constituent corporation or the sale of all or substantially all of the
assets of the corporation. If the certificate of incorporation contains such a provision, the procedures of this section, including those set forth in subsections (d)&nbsp;and (e)&nbsp;of this
section, shall apply as nearly as is practicable. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;Appraisal
rights shall be perfected as follows: </FONT></P>

<UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;&nbsp;If
a proposed merger or consolidation for which appraisal rights are provided under this section is to be submitted for approval at a meeting of stockholders, the
corporation, not less than 20&nbsp;days prior to the meeting, shall notify each of its stockholders who was such on the record date for such meeting with respect to shares for which appraisal rights
are available pursuant to subsection (b)&nbsp;or (c)&nbsp;hereof that appraisal rights are available for any or all of the shares of the constituent corporations, and shall include in such notice
a copy of this section. Each stockholder electing to demand the appraisal of such stockholder's shares shall deliver to the corporation, before the taking of the vote on the merger or consolidation, a
written demand for appraisal of such stockholder's shares. Such demand will be sufficient if it reasonably informs the corporation of the identity of the stockholder and that the stockholder intends
thereby to demand the appraisal of such stockholder's shares. A proxy or vote against the merger or consolidation shall not constitute such a demand. A stockholder electing to take such action must do
so by a separate written demand as herein provided. Within 10&nbsp;days after the effective date of such merger or consolidation, the surviving or resulting corporation shall notify each stockholder
of each constituent corporation who has complied with this subsection and has not voted in favor of or consented to the merger or consolidation of the date that the merger or consolidation has become
effective; or </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;&nbsp;If
the merger or consolidation was approved pursuant to &sect; 228 or &sect; 253 of this title, then either a constituent corporation before the effective
date of the merger or consolidation or the surviving or resulting corporation within 10&nbsp;days thereafter shall notify each of the holders of any class or series of stock of such constituent
corporation who are entitled to appraisal rights of the approval of the merger or consolidation and that appraisal rights are available for any or all shares of such class or series of stock of such
constituent corporation, and shall include in such notice a copy of this section. Such notice may, and, if given on or after the effective date of the merger or consolidation, shall, also notify such
stockholders of the effective date of the merger or consolidation. Any stockholder entitled to appraisal rights may, within 20&nbsp;days after the date of mailing of such notice, demand in writing
from the surviving or resulting corporation the appraisal of such holder's shares. Such demand will be sufficient if it reasonably informs the corporation of the identity of the stockholder and that
the stockholder intends thereby to demand the appraisal of such holder's shares. If such notice did not notify stockholders of the effective date of the merger or consolidation, either (i)&nbsp;each
such constituent corporation shall send a second notice before the effective date of the merger or consolidation notifying each of the holders of any class or series of stock of such </FONT></P>

</UL>
</UL>
<P ALIGN="CENTER"><FONT SIZE=2>2</FONT></P>

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<A NAME="page_lv4672_1_3"> </A>
<UL>
<UL>
<BR>

<P><FONT SIZE=2>constituent
corporation that are entitled to appraisal rights of the effective date of the merger or consolidation or (ii)&nbsp;the surviving or resulting corporation shall send such a second notice
to all such holders on or within 10&nbsp;days after such effective date; provided, however, that if such second notice is sent more than 20&nbsp;days following the sending of the first notice,
such second notice need only be sent to each stockholder who is entitled to appraisal rights and who has demanded appraisal of such holder's shares in accordance with this subsection. An affidavit of
the secretary or assistant secretary or of the transfer agent of the corporation that is required to give either notice that such notice has been given shall, in the absence of fraud, be prima facie
evidence of the facts stated therein. For purposes of determining the stockholders entitled to receive either notice, each constituent corporation may fix, in advance, a record date that shall be not
more than 10&nbsp;days prior to the date the notice is given, provided, that if the notice is given on or after the effective date of the merger or consolidation, the record date shall be such
effective date. If no record date is fixed and the notice is given prior to the effective date, the record date shall be the close of business on the day next preceding the day on which the notice is
given. </FONT></P>

</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;Within
120&nbsp;days after the effective date of the merger or consolidation, the surviving or resulting corporation or any stockholder who has complied with
subsections (a)&nbsp;and (d)&nbsp;hereof and who is otherwise entitled to appraisal rights, may file&nbsp;a petition in the Court of Chancery demanding a determination of the value of the stock
of all such stockholders. Notwithstanding the foregoing, at any time within 60&nbsp;days after the effective date of the merger or consolidation, any stockholder shall have the right to withdraw
such stockholder's demand for appraisal and to accept the terms offered upon the merger or consolidation. Within 120&nbsp;days after the effective date of the merger or consolidation, any
stockholder who has complied with the requirements of subsections (a)&nbsp;and (d)&nbsp;hereof, upon written request, shall be entitled to receive from the corporation surviving the merger or
resulting from the consolidation a statement setting forth the aggregate number of shares not voted in favor of the merger or consolidation and with respect to which demands for appraisal have been
received and the aggregate number of holders of such shares. Such written statement shall be mailed to the stockholder within 10&nbsp;days after such stockholder's written request for such a
statement is received by the surviving or resulting corporation or within 10&nbsp;days after expiration of the period for delivery of demands for appraisal under subsection (d)&nbsp;hereof,
whichever is later. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;Upon
the filing of any such petition by a stockholder, service of a copy thereof shall be made upon the surviving or resulting corporation, which shall within
20&nbsp;days after such service file in the office of the Register in Chancery in which the petition was filed a duly verified list containing the names and addresses of all stockholders who have
demanded payment for their shares and with whom agreements as to the value of their shares have not been reached by the surviving or resulting corporation. If the petition shall be filed by the
surviving or resulting corporation, the petition shall be accompanied by such a duly verified list. The Register in Chancery, if so ordered by the Court, shall give notice of the time and place fixed
for the hearing of such petition by registered or certified mail to the surviving or resulting corporation and to the stockholders shown on the list at the addresses therein stated. Such notice shall
also be given by 1 or more publications at least 1 week before the day of the hearing, in a newspaper of general circulation published in the City of Wilmington, Delaware or such publication as the
Court deems advisable. The forms of the notices by mail and by publication shall be approved by the Court, and the costs thereof shall be borne by the surviving or resulting corporation. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;&nbsp;At
the hearing on such petition, the Court shall determine the stockholders who have complied with this section and who have become entitled to appraisal rights. The
Court may require the stockholders who have demanded an appraisal for their shares and who hold stock represented by certificates to submit their certificates of stock to the Register in Chancery for </FONT></P>

</UL>
<P ALIGN="CENTER"><FONT SIZE=2>3</FONT></P>

<HR NOSHADE>
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<A NAME="page_lv4672_1_4"> </A>
<UL>
<BR>

<P><FONT SIZE=2>notation
thereon of the pendency of the appraisal proceedings; and if any stockholder fails to comply with such direction, the Court may dismiss the proceedings as to such stockholder. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;&nbsp;After
determining the stockholders entitled to an appraisal, the Court shall appraise the shares, determining their fair value exclusive of any element of value arising
from the accomplishment or expectation of the merger or consolidation, together with a fair rate of interest, if any, to be paid upon the amount determined to be the fair value. In determining such
fair value, the Court shall take into account all relevant factors. In determining the fair rate of interest, the Court may consider all relevant factors, including the rate of interest which the
surviving or resulting corporation would have had to pay to borrow money during the pendency of the proceeding. Upon application by the surviving or resulting corporation or by any stockholder
entitled to participate in the appraisal proceeding, the Court may, in its discretion, permit discovery or other pretrial proceedings and may proceed to trial upon the appraisal prior to the final
determination of the stockholder entitled to an appraisal. Any stockholder whose name appears on the list filed by the surviving or resulting corporation pursuant to subsection (f)&nbsp;of this
section and who has submitted such stockholder's certificates of stock to the Register in Chancery, if such is required, may participate fully in all proceedings until it is finally determined that
such stockholder is not entitled to appraisal rights under this section. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;The
Court shall direct the payment of the fair value of the shares, together with interest, if any, by the surviving or resulting corporation to the stockholders
entitled thereto. Interest may be simple or compound, as the Court may direct. Payment shall be so made to each such stockholder, in the case of holders of uncertificated stock forthwith, and the case
of holders of shares represented by certificates upon the surrender to the corporation of the certificates representing such stock. The Court's decree
may be enforced as other decrees in the Court of Chancery may be enforced, whether such surviving or resulting corporation be a corporation of this State or of any state. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)&nbsp;&nbsp;The
costs of the proceeding may be determined by the Court and taxed upon the parties as the Court deems equitable in the circumstances. Upon application of a
stockholder, the Court may order all or a portion of the expenses incurred by any stockholder in connection with the appraisal proceeding, including, without limitation, reasonable attorney's fees and
the fees and expenses of experts, to be charged pro rata against the value of all the shares entitled to an appraisal. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k)&nbsp;&nbsp;From
and after the effective date of the merger or consolidation, no stockholder who has demanded appraisal rights as provided in subsection (d)&nbsp;of this section
shall be entitled to vote such stock for any purpose or to receive payment of dividends or other distributions on the stock (except dividends or other distributions payable to stockholders of record
at a date which is prior to the effective date of the merger or consolidation); provided, however, that if no petition for an appraisal shall be filed within the time provided in subsection
(e)&nbsp;of this section, or if such stockholder shall deliver to the surviving or resulting corporation a written withdrawal of such stockholder's demand for an appraisal and an acceptance of the
merger or consolidation, either within 60&nbsp;days after the effective date of the merger or consolidation as provided in subsection (e)&nbsp;of this section or thereafter with the written
approval of the corporation, then the right of such stockholder to an appraisal shall cease. Notwithstanding the foregoing, no appraisal proceeding in the Court of Chancery shall be dismissed as to
any stockholder without the approval of the Court, and such approval may be conditioned upon such terms as the Court deems just. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l)&nbsp;&nbsp;The
shares of the surviving or resulting corporation to which the shares of such objecting stockholders would have been converted had they assented to the merger or
consolidation shall have the status of authorized and unissued shares of the surviving or resulting corporation. </FONT></P>

</UL>
<P ALIGN="CENTER"><FONT SIZE=2>4</FONT></P>

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<P ALIGN="CENTER"><FONT SIZE=3><B>REVOCABLE PROXY<BR>
BALTEK CORPORATION  </B></FONT></P>

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<TABLE WIDTH="100%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="TOP">
<TD WIDTH="3%"><BR><FONT SIZE=1><B> <FONT FACE="WINGDINGS">&#253;</FONT></B></FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1><B><BR>&nbsp;</B></FONT></TD>
<TD WIDTH="31%"><FONT SIZE=1><B><BR>
PLEASE MARK VOTES<BR>
AS IN THIS EXAMPLE</B></FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1><B><BR>&nbsp;</B></FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1><B><BR>
&nbsp;</B></FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1><B><BR>&nbsp;</B></FONT></TD>
<TD WIDTH="31%"><FONT SIZE=1><B><BR>
&nbsp;</B></FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1><B><BR>&nbsp;</B></FONT></TD>
<TD WIDTH="4%"><FONT SIZE=1><B><BR>
&nbsp;</B></FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1><B><BR>&nbsp;</B></FONT></TD>
<TD WIDTH="7%"><FONT SIZE=1><B><BR>
&nbsp;</B></FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1><B><BR>&nbsp;</B></FONT></TD>
<TD WIDTH="7%"><FONT SIZE=1><B><BR>
&nbsp;</B></FONT></TD>
</TR>
<TR VALIGN="BOTTOM">
<TD COLSPAN=3 VALIGN="TOP"><FONT SIZE=1><B><BR>
SOLICITED BY THE BOARD OF DIRECTORS</B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP"><FONT SIZE=1><B><BR>&nbsp;</B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP"><FONT SIZE=1><B><BR>
&nbsp;</B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP"><FONT SIZE=1><B><BR>&nbsp;</B></FONT></TD>
<TD WIDTH="31%" VALIGN="TOP"><FONT SIZE=1><B><BR>
&nbsp;</B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP"><FONT SIZE=1><B><BR>&nbsp;</B></FONT></TD>
<TD WIDTH="4%" VALIGN="TOP"><FONT SIZE=1><B><BR>
&nbsp;</B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP"><FONT SIZE=1><B><BR>&nbsp;</B></FONT></TD>
<TD WIDTH="7%" VALIGN="TOP"><FONT SIZE=1><B><BR>
&nbsp;</B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP"><FONT SIZE=1><B><BR>&nbsp;</B></FONT></TD>
<TD WIDTH="7%" VALIGN="TOP"><FONT SIZE=1><B><BR>
&nbsp;</B></FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=3><FONT SIZE=1><B><BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;PROXY for Special Meeting of Shareholders to be held on&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,
2003 at 10:00 A.M. Eastern Daylight Time at the offices of Baltek Corporation, 108 Fairway Court, Northvale, New Jersey.</B></FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1><B><BR>&nbsp;</B></FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1><B><BR>
1.</B></FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1><B><BR>&nbsp;</B></FONT></TD>
<TD WIDTH="31%"><FONT SIZE=1><B><BR>
Proposal to adopt the Agreement and Plan of Merger, dated March 5, 2003, by and among Alcan Inc., Alcan Balcorp, Inc., a wholly-owned subsidiary of Alcan Inc., and Baltek Corporation, and the transactions contemplated thereby.</B></FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1><B><BR>&nbsp;</B></FONT></TD>
<TD WIDTH="4%" ALIGN="CENTER"><FONT SIZE=1><B><BR>
For<BR>
<FONT FACE="WINGDINGS">&#111;</FONT></B></FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1><B><BR>&nbsp;</B></FONT></TD>
<TD WIDTH="7%" ALIGN="CENTER"><FONT SIZE=1><B><BR>
Against<BR>
<FONT FACE="WINGDINGS">&#111;</FONT></B></FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1><B><BR>&nbsp;</B></FONT></TD>
<TD WIDTH="7%" ALIGN="CENTER"><FONT SIZE=1><B><BR>
Abstain<BR>
<FONT FACE="WINGDINGS">&#111;</FONT></B></FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=3><FONT SIZE=1><B><BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The undersigned hereby appoints Jacques Kohn, Benson J. Zeikowitz and Bernard J. Wald, or any one of them, with full power of substitution, as proxies to vote at the Special Meeting of Shareholders
(including any adjournment, postponements and continuations thereof) of Baltek Corporation to be convened&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,
2003.</B></FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1><B><BR>&nbsp;</B></FONT></TD>
<TD COLSPAN=9><FONT SIZE=1><B><BR>
&nbsp;&nbsp;&nbsp;&nbsp;The Board of Directors recommends a vote FOR the Proposal.<BR>
<BR>
&nbsp;&nbsp;&nbsp;&nbsp;THE SHARES REPRESENTED BY THIS PROXY WILL BE VOTED UPON THE RESOLUTION LISTED ABOVE IN ACCORDANCE WITH THE INSTRUCTIONS GIVEN BY THE STOCKHOLDER, BUT IF NO INSTRUCTION IS GIVEN, THIS PROXY WILL BE VOTED FOR THE PROPOSAL. A
VOTE OF ABSTENTION WILL COUNT AS A VOTE AGAINST THE PROPOSAL.</B></FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="3%"><FONT SIZE=1><B><BR>
&nbsp;</B></FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1><B><BR>&nbsp;</B></FONT></TD>
<TD WIDTH="31%"><FONT SIZE=1><B><BR>
&nbsp;</B></FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1><B><BR>&nbsp;</B></FONT></TD>
<TD COLSPAN=9><BR><FONT SIZE=1>This proxy is to be voted for each proposition unless a contrary vote is specified. It may be revoked at any time prior to its exercise in person or by a writing delivered to the Secretary of the Company.</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="3%"><FONT SIZE=1><BR>
&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1><BR>&nbsp;</FONT></TD>
<TD WIDTH="31%"><FONT SIZE=1><BR>
&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1><BR>&nbsp;</FONT></TD>
<TD COLSPAN=9><FONT SIZE=1><BR>
When signing as attorney, executor, administrator, trustee, guardian or corporate officer, please give your full title as such.</FONT></TD>
</TR>
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<TR VALIGN="BOTTOM">
<TD WIDTH="34%" ALIGN="CENTER" VALIGN="TOP"><BR><FONT SIZE=1> Please be sure to sign and date<BR>
this Proxy in the box below.</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP"><FONT SIZE=1><BR>&nbsp;</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP"><FONT SIZE=1><BR>
Date</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP"><FONT SIZE=1><BR>&nbsp;</FONT></TD>
<TD WIDTH="44%" VALIGN="TOP"><FONT SIZE=1><BR>
&nbsp;</FONT></TD>
</TR>
<TR VALIGN="BOTTOM">
<TD COLSPAN=3 VALIGN="TOP"><BR><HR NOSHADE></TD>
<TD WIDTH="2%" VALIGN="TOP"><FONT SIZE=1><BR>&nbsp;</FONT></TD>
<TD WIDTH="44%" VALIGN="TOP"><FONT SIZE=1><BR>
&nbsp;</FONT></TD>
</TR>
<TR VALIGN="BOTTOM">
<TD COLSPAN=3 ALIGN="CENTER" VALIGN="TOP"><FONT SIZE=1><BR>
Shareholder sign above _________ Co-holder (if any) sign above<BR></FONT>
</TD>
<TD WIDTH="2%" VALIGN="TOP"><FONT SIZE=1><BR>&nbsp;</FONT></TD>
<TD WIDTH="44%" VALIGN="TOP"><FONT SIZE=1><BR>
&nbsp;</FONT></TD>
</TR>
</TABLE>
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<P ALIGN="CENTER"><FONT SIZE=1><B>Detach above card, sign, date and mail in postage paid envelope provided.  </B></FONT></P>

<P ALIGN="CENTER"><FONT SIZE=3><B>BALTEK CORPORATION<BR>  </B></FONT><FONT SIZE=2><B>NORTHVALE, NJ 07647  </B></FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><B> PLEASE DATE AND SIGN THIS PROXY AND RETURN PROMPTLY IN THE ENCLOSED ENVELOPE<BR>
WHETHER OR NOT YOU EXPECT TO ATTEND THE MEETING.  </B></FONT></P>


<P><FONT SIZE=1>IF YOUR ADDRESS HAS CHANGED, PLEASE CORRECT THE ADDRESS IN THE SPACE PROVIDED BELOW AND RETURN THIS PORTION WITH THE PROXY IN THE ENVELOPE PROVIDED. </FONT></P>

<HR NOSHADE ALIGN="LEFT" WIDTH="234">
<HR NOSHADE ALIGN="LEFT" WIDTH="234">
<HR NOSHADE ALIGN="LEFT" WIDTH="234">
<HR NOSHADE>
<!-- ZEQ.=1,SEQ=90,EFW="2110420",CP="BALTEK CORP.",DN="1",CHK=706319,FOLIO='blank',FILE='DISK009:[03NYC3.03NYC4673]KA4673A.;18',USER='ARUSS',CD=';8-MAY-2003;17:51' -->
<!-- THIS IS THE END OF A COMPOSITION COMPONENT -->
<BR>
<P><br><A NAME="03NYC4672_1">QuickLinks</A><br></P><!-- TOC_BEGIN -->
<FONT SIZE=2><A HREF="#toc_be4672_1">BALTEK CORPORATION 10 FAIRWAY COURT P.O. BOX 195 NORTHVALE, NEW JERSEY 07647</A></FONT><BR>
<FONT SIZE=2><A HREF="#toc_be4672_2">NOTICE OF SPECIAL MEETING OF STOCKHOLDERS TO BE HELD ON JUNE , 2003</A></FONT><BR>
<!-- TOC_BEGIN -->
<FONT SIZE=2><A HREF="#toc_bg4672_1">TABLE OF CONTENTS</A></FONT><BR>
<!-- TOC_BEGIN -->
<FONT SIZE=2><A HREF="#toc_da4672_1">SUMMARY TERM SHEET</A></FONT><BR>
<!-- TOC_BEGIN -->
<FONT SIZE=2><A HREF="#toc_dc4672_1">QUESTIONS AND ANSWERS ABOUT THE MERGER</A></FONT><BR>
<!-- TOC_BEGIN -->
<FONT SIZE=2><A HREF="#toc_de4672_1">DEFINITIONS OF KEY TERMS</A></FONT><BR>
<FONT SIZE=2><A HREF="#toc_de4672_2">SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS</A></FONT><BR>
<FONT SIZE=2><A HREF="#toc_de4672_3">THE SPECIAL MEETING</A></FONT><BR>
<FONT SIZE=2><A HREF="#toc_de4672_4">THE COMPANIES</A></FONT><BR>
<FONT SIZE=2><A HREF="#toc_de4672_5">THE MERGER</A></FONT><BR>
<!-- TOC_BEGIN -->
<FONT SIZE=2><A HREF="#toc_dg4672_1">THE MERGER AGREEMENT</A></FONT><BR>
<!-- TOC_BEGIN -->
<FONT SIZE=2><A HREF="#toc_di4672_1">VOTING AGREEMENT</A></FONT><BR>
<FONT SIZE=2><A HREF="#toc_di4672_2">SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT</A></FONT><BR>
<FONT SIZE=2><A HREF="#toc_di4672_3">BENEFICIAL OWNERSHIP(1)</A></FONT><BR>
<FONT SIZE=2><A HREF="#toc_di4672_4">STOCKHOLDER PROPOSALS</A></FONT><BR>
<FONT SIZE=2><A HREF="#toc_di4672_5">WHERE YOU CAN FIND MORE INFORMATION</A></FONT><BR>
<FONT SIZE=2><A HREF="#toc_di4672_6">OTHER MATTERS</A></FONT><BR>
<!-- TOC_BEGIN -->
<FONT SIZE=2><A HREF="#toc_la4672_1">AGREEMENT AND PLAN OF MERGER Among BALTEK CORPORATION, ALCAN INC. and ALCAN BALCORP, INC. Dated as of 5 March, 2003</A></FONT><BR>
<!-- TOC_BEGIN -->
<FONT SIZE=2><A HREF="#toc_lc4672_1">TABLE OF CONTENTS</A></FONT><BR>

<!-- TOC_BEGIN -->
<FONT SIZE=2><A HREF="#toc_le4672_1">AGREEMENT AND PLAN OF MERGER</A></FONT><BR>
<FONT SIZE=2><A HREF="#toc_le4672_2">RECITALS</A></FONT><BR>
<!-- TOC_BEGIN -->
<FONT SIZE=2><A HREF="#toc_lo4672_1">VOTING AGREEMENT</A></FONT><BR>
<!-- TOC_BEGIN -->
<FONT SIZE=2><A HREF="#toc_lr4672_1">EXHIBIT A</A></FONT><BR>
<!-- TOC_BEGIN -->
<FONT SIZE=2><A HREF="#toc_lt4672_1">Phoenix Securities Corp. A Subsidiary of Laidlaw Global Corp. 575 Madison Avenue, 10th Floor New York, NY 10022 Tel: (212) 937-8465 Fax: (212) 937-8470</A></FONT><BR>
<!-- TOC_BEGIN -->
<FONT SIZE=2><A HREF="#toc_lv4672_1">GENERAL CORPORATION LAW OF THE STATE OF DELAWARE</A></FONT><BR>
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