X0201 42003-12-30 0000003982 ALLIS CHALMERS CORP ACLM 0001169449 MORTENSEN JENS H 7660 WOODWAY, SUITE 200 HOUSTON TX 77063 1100PresidentCommon Stock2003-12-304J069892D1327957DNon-Employee Option to Purchase Common Stock 0Common Stock0DThe Reporting Person acquired the Common Stock of the Issuer in exchange for 81% of the capital stock (the "JOS Shares") of Jens Oilfield Services, Inc. ("JOS") pursuant to a Stock Purchase Agreement dated February 6, 2002 (the "SPA"). The SPA further provides that at any time on or after February 1, 2003, in the event Mortensen continues to own the JOS Shares retained by him (which constitute 19% of the JOS Shares), Mortensen has the option to convert such shares into a number of shares of the Issuer's Common Stock equal to a fraction, the numerator of which is 4.6 multiplied by the trailing 12 month EBITDA (as defined below) of JOS, less any inter-company loans to and third investments in JOS, multiplied by 0.19, and the denominator of which is the average closing bid price for the Issuer's Common Stock during the thirty days prior to the date of exercise of the option. For the purposes of the foregoing calculation, EBITDA means JOS' earnings before interest, taxes, depreciation and amortization and any payments made to the Issuer in respect of the Issuer's overhead.Not applicable.Jens H. Mortensen2003-12-30