Document:

aa-ex104_317.htm

 

EXHIBIT 10.4

 

 

 

 

 

 

 

 

 

NOVATION  AGREEMENT

 

 

RELATING TO

 

FRAMEWORK SHAREHOLDERS AGREEMENT

DATED 20 DECEMBER 2009, as amended

 

 

between

 

 

SAUDI ARABIAN MINING COMPANY (MA'ADEN)

 

and

 

ARCONIC INC.

 

 

and

 

ALCOA CORPORATION

 

 

 

NOVATION  AGREEMENT

THIS DEED ("Deed") is made and entered into on                                                     H, corresponding to 24 December, 2016G, by and between:

 

	
 
	
(1)
	
SAUDI ARABIAN MINING COMPANY (MA'ADEN), a joint stock company organized and existing under the laws of the Kingdom of Saudi Arabia with its offices at P.O. Box 688861, Riyadh 11537, Kingdom of Saudi Arabia ("Ma'aden");

 

	
 
	
(2)
	
ARCONIC INC., (formerly known as ALCOA INC.) a corporation under the laws of the Commonwealth of Pennsylvania, USA, whose principal place of business is at 390 Park Avenue, New York, NY 1022, USA (“Novator”) and

 

	
 
	
(3)
	
ALCOA CORPORATION (formerly known as ALCOA UPSTREAM CORPORATION) a company under the  laws of the State of Delaware, USA, whose  principal  place of  business is at 390 Park Avenue,  New York, NY 1022, USA  (the "Novatee").

 

RECITALS:

	
 
	
A.
	
This Deed is supplemental to the Framework Shareholders Agreement which was entered into between Ma'aden and the Novator on 20 December 2009, as amended by the First Supplemental Agreement to the Framework Shareholder s Agreement dated 30 March 2010 (the "Agreement").
	
 

 

	
 
	
B.
	
The Novator has informed Ma'aden of its separation into two US publicly-traded companies: (i) an upstream business that will continue as the shareholder in the three Ma'aden-Alcoa joint venture companies, ultimately owned by the Novatee, Alcoa Corporation (that has changed its name from Alcoa Upstream Corporation), and (ii) a downstream business that will be owned by the Novator.

 

	
 
	
C.
	
The Novator desires to be released and discharged from the further performance of its obligations under the Agreement and the Novatee has agreed to undertake to perform and observe those obligations under the Agreement and to be bound by the terms thereof.
	
 

 

	
 
	
D.
	
Ma'aden has agreed to release and discharge the Novator in respect of any liability under the Agreement and the Novatee has agreed that it shall have the benefit of the duties and obligations on the part of the Novator contained in the Agreement in all respects as if the Novatee had been named in the Agreement as a party thereto in place of the Novator.
	
 

 

	
 
	
E.
	
Certain of the Ancillary Agreements (as defined in the Agreement) have been entered into by or transferred to affiliates of the Novator that have become subsidiaries of the Novatee, as listed in Appendix A hereto (the "Alcoa Affiliate Agreements"). The parties acknowledge that the Alcoa Affiliate Agreements therefore will not require novation to the Novatee.
	
 

 

	
 
	
F.
	
Ma'aden and the Novator have agreed to procure that, where Ma'aden has novated any of the Ancillary Agreements to any of the three Ma'aden-Alcoa joint venture companies as listed in Appendix B ( the "Project Company Agreements"), such companies shall enter into separate novation agreements under which they release and discharge the Novator in respect of any liability under such Project Company Agreements and the Novatee agrees that it shall have the benefit of the duties and obligations on the part of the Novator contained in such Project Company Agreements in all respects as if the Novatee had been named in such Project Company Agreements as a party thereto in place of the Novator.
	
 

 

2

 

THE PARTIES TO THIS DEED HEREBY AGREE as follows:

 

	
 
	
1.
	
DEFINITIONS AND INTERPRETATION

 

	
 
	
1.1
	
Save to the extent otherwise defined herein, the terms defined in the Agreement shall unless the context requires otherwise bear the same meaning in this Deed.
	
 

	
 
	
1.2 
	
In this Deed references to documents and contracts shall be deemed to be references to those documents and contracts as may be amended, supplemented, assigned or novated from time to time.
	
 

 

	
 
	
2.
	
NOVATION

 

	
 
	
2.1 
	
Ma'aden hereby releases and discharges the Novator from the performance of its undertakings and obligations under the Agreement and from all liabilities, claims and demands of any kind arising whether past, present or future under or in connection with the Agreement. As from and including the date of this Deed, Ma'aden accepts, in place of that performance and those liabilities, claims and demands, the undertaking of the Novatee set out in clause 2.3.
	
 

	
 
	
2.2
	
The Novator hereby transfers its rights, benefits, obligations and liabilities under the Agreement to the Novatee, and the Novatee hereby consents to and accepts such transfer. With effect from and including the date of this Deed, the Novator shall cease to have any rights under the Agreement in respect of any breach, non-observance or non-performance by Ma'aden of its obligations under the Agreement whether past, present or future.
	
 

	
 
	
2.3
	
The Novatee hereby undertakes to Ma'aden that it will, from and including the date of this Deed (i) duly fulfil, perform, observe and comply with the duties, undertakings and obligations on the part of the Novator contained in the Agreement and be bound by the terms thereof in all respects, and (ii) be liable to Ma'aden for any breach, non-observance or non­performance by the Novator of its obligations under the Agreement whether occurring on or prior to the date of this Deed; in each case as if the Novatee had been a party to the Agreement in place of the Novator from the outset.
	
 

	
 
	
2.4
	
Ma'aden hereby undertakes to the Novatee that it will, from and including the date of this Deed (i) duly fulfil, perform, observe and comply with the duties, undertakings and obligations on the part of Ma'aden contained in the Agreement and to be bound by the terms thereof in all respects, and (ii) be liable to the Novatee for any breach, non-observance or non-performance by Ma'aden of its obligations under the Agreement whether occurring on or prior to the date of this Deed; in each case as if the Novatee had been named in the Agreement as a party thereto in place of the Novator from the outset.
	
 

 

	
 
	
3.
	
MISCELLANEOUS

	
 
	
3.1
	
Each party hereby agrees in favour of each of the other parties that it shall use reasonable endeavours to undertake all such matters as are reasonably required in order to give legal effect to its respective obligations hereunder.
	
 

 

	
 
	
3.2
	
The construction, validity and performance of this Deed and all non-contractual obligations arising from or connected with this Deed will be governed by and construed in accordance with the laws of England. The parties hereby submit to the non-exclusive jurisdiction of the English courts for purposes of any proceedings arising in connection herewith.
	
 

 

	
 
	
3.3
	
This Deed may be executed in any number of counterparts and this shall have the same effect as if the signatures on the counterparts were on a single copy of this Deed.
	
 

 

3

 

 

	
 
	
3.4
	
If any provision of this Deed is held by a court of competent jurisdiction to be illegal, invalid or unenforceable in any respect under the law of any jurisdiction, then such provision shall (so far as it is invalid or unenforceable) be given no effect and shall be deemed not to be included in this Deed but without invalidating any of the remaining provisions of this Deed. The parties shall then use all reasonable endeavours to replace the invalid or unenforceable provision(s) by a valid and enforceable substitute provision the effect of which is as close as possible to the intended effect of the invalid or unenforceable provision.
	
 

 

 

EXECUTED AS A DEED

 

		
	
EXECUTED as a Deed
	
)

	
 
	
 

	
 
	
 

	
By    /s/ Khalid S. Mudaifer                                   for and on behalf of
	
 

	
SAUDI ARABIAN MINING COMPANY (MA'ADEN)
	
)

	
 
	
 

	
 
	
 

	
 
	
 

	
EXECUTED as a Deed
	
)

	
 
	
 

	
 
	
 

	
By    /s/ Kenneth P. Wisnoski                                for and on behalf of
	
 

	
ARCONIC INC.
	
)

	
 
	
 

	
 
	
 

	
 
	
 

	
EXECUTED as a Deed
	
)

	
 
	
 

	
 
	
 

	
By    /s/ Roy Harvey                                              for and on behalf of
	
 

	
ALCOA CORPORATION
	
 

 

 

 

 

4

 

APPENDIX A

 

ALCOA AFFILIATE AGREEMENTS

 

 

	
 
	
•
	
The Rolling Expansion Letter of Agreement of 30 April 2012 between Alcoa Saudi Rolling Inversiones S.L. and Saudi Arabian Mining Company (Ma'aden).
	
 

 

	
 
	
•
	
The Aluminium Purchase Agreement dated 3/1/1431 H (corresponding to 20 December 2009G) between Ma'aden and Alcoa Inc. as novated on 9 May 2011 from Ma'aden to Ma'aden Aluminium Company and Alcoa Inc. to Alcoa lnespal S.A.
	
 

 

	
 
	
•
	
The Cast House Users Agreement dated 3 May 2011 (corresponding to 29/05/1432 H) between Ma'aden Aluminium Company, Ma'aden Rolling Company, Saudi Arabian Mining Company (Ma'aden) and Alcoa Inespal S.A. and
	
 

 

	
 
	
•
	
The Technical Services Agreement (IK) dated 3/1/1431 H (corresponding to 20 December 2009) between Ma'aden and Alcoa Inc. as novated on 26 September 2012 from Ma'aden to Ma'aden Bauxite and Alumina Company and from Alcoa Inc. to Alcoa IK Services Inc. and Alcoa Canada IK Services Limited. (the "MBAC TSA").
	
 

 

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APPENDIX B

 

PROJECT COMPANY AGREEMENTS

 

 

 

	
 
	
•
	
The Technology License Agreement dated 3/1/1431H (corresponding to 20 December 2009) between Ma'aden and Alcoa Inc. as novated on 22 January 2011 from Ma'aden to Ma'aden Aluminium Company (the "MAC TLA");

 

	
 
	
•
	
The Technology License Agreement dated 3/1/1431H (corresponding to 20 December 2009) between Ma'aden and Alcoa Inc. as novated on 22 January 2011 from Ma'aden to Ma'aden Rolling Company;

 

	
 
	
•
	
The Technology License Agreement dated 3/1/1431H (corresponding to 20 December 2009) between Ma'aden and Alcoa Inc. as novated on 26 August 2012 from Ma'aden to Ma'aden Bauxite and Alumina Company;

 

	
 
	
•
	
The Technical Services Agreement (IK) dated 3/1/1431H (corresponding to 20 December 2009) between Ma'aden and Alcoa Inc. as novated on 23 March 2011 from Ma’aden to Ma'aden Aluminium Company;

 

	
 
	
•
	
The Technical Services Agreement (IK) dated 3/1/1431H (corresponding to 20 December 2009) between Ma'aden and Alcoa Inc. as novated on 23 March 2011 from Ma'aden to Ma'aden Rolling Company;

 

	
 
	
•
	
The Technical Services Agreement (OOK) dated 3/1/1431H (corresponding to 20 December 2009) between Ma'aden and Alcoa Inc. as novated on 22 January 2011 from Ma’aden to Ma'aden Aluminium Company;

 

	
 
	
•
	
The Technical Services Agreement (OOK) dated 3/1/1431H (corresponding to 20 December 2009) between Ma'aden and Alcoa Inc. as novated on 22 January 2011 from Ma'aden to Ma'aden Rolling Company;

 

	
 
	
•
	
The Technical Services Agreement (OOK) dated 3/1/1431H (corresponding to 20 December 2009) between Ma'aden and Alcoa Inc. as novated on 15 July 2012 from Ma'aden to Ma'aden Bauxite and Alumina Company;

6aa-ex105_316.htm

EXHIBIT 10.5

 

		
	

	
Alcoa Corporation

 

201 Isabella Street

Suite 500

Pittsburgh, PA 15212-5858 USA

Tel: 1 412 315 2900

 

July 03, 2019

 

Tómas Sigurðsson

[Address Omitted]

 

 

Dear Tómas:

 

This letter agreement sets forth the terms of your separation from employment with Alcoa Corporation (“Alcoa” or the “Company”) and the transition of your specific areas of accountability, and supersedes all prior agreements regarding your employment with and separation from the Company (if any).

 

Transition and Separation

 

Effective immediately, you will assist in the implementation of a successful and positive transition and redeployment of your job functions and responsibilities, and perform such other related activities as you are advised (“Transitional Services”).   It is anticipated that by no later than September 30, 2019 the primary activities associated with the Transitional Services will have been completed and thereafter you will be available as needed should we have any additional transition questions or other requirements until December 31, 2019 (the “Separation Date”).  You will (i) remain on the active payroll, (ii) continue to receive your full monthly salary of ISK 4,877,767, and (iii) continue to be covered under all applicable Company sponsored benefit plans 

 

Page 2

 

 

and programs, including the obligations of the company to indemnify you for proper actions taken by you during your employment commensurate with your job band, through the close of business on the Separation Date.  

 

Effective as of the close of business on the Separation Date, you will be separated from the Company, resign all positions as an officer or director of the company’s subsidiaries, and the following will occur in connection with your acceptance of this agreement:  

 

Pursuant to your executive severance agreement dated as of December 1, 2016 and acknowledged April 4, 2017 (“Executive Severance Agreement”), you will receive the following:

 

	
 
	
a)
	
a lump sum payment equal to one-year annual salary of fifty-eight million, five hundred thirty-three thousand, two hundred four Icelandic króna (ISK 58,533,204), less applicable taxes and withholding, payable on or about January 31, 2020.  

 

	
 
	
b)
	
a lump sum payment valued as of your Separation Date, which reflects the value of Icelandic Pension contributions for an additional 12 months, payable on or about January 31, 2020.  We estimate this amount to be fifteen million, eight hundred seventy-seven thousand, one hundred thirty-two Icelandic króna (ISK 15,877,132), less applicable taxes and withholding.  

 

 

Page 3

 

 

	
 
	
c)
	
2019 incentive compensation (“IC”), in an amount equal to your 2019 base salary earnings multiplied by an IC target of 100% multiplied by the IC Plan performance results, payable at the same time active employees receive such payment less applicable taxes and withholding.

 

In addition to the benefits payable under the Executive Severance Agreement described above:

 

	
 
	
d)
	
you will receive a lump sum payment of six million, five hundred thirty-seven thousand, nine hundred forty Icelandic króna (ISK 6,537,940), less applicable taxes and withholding, which reflects 12 months additional auto allowance, payable on or about January 31, 2020.

 

	
 
	
e)
	
you will have access to outplacement assistance provided by Right Management Consultants provided you initiate services within 12 months of the Separation Date.

 

	
 
	
f)
	
you will have tax assistance provided by Deloitte Tax LLP (“Deloitte”) for the tax years 2019 and 2020, and thereafter as needed for Alcoa sourced income as determined by Deloitte and Alcoa. You agree to provide all information necessary to prepare and file any required tax returns based on Alcoa sourced income on a timely basis to Deloitte. These items will be requested directly by Deloitte and will not be shared with the Company. However, the Company will follow up on any missing information based on requests by Deloitte.

 

 

Page 4

 

 

	
 
	
g)
	
all unvested Alcoa stock incentive awards will be forfeited under the terms of the Stock Incentive Plan. This forfeiture includes your vested and unexercised Alcoa stock options.  

 

	
 
	
h)
	
Due to the forfeiture of equity, no later than February 28, 2020, we will provide you with the greater of the following less applicable taxes and withholding :  

 

	
 
	
1.
	
The Icelandic króna equivalent of six hundred seventy thousand four hundred eighty-one U.S. dollars (USD $670,481); or

 

	
 
	
2.
	
the value of your restricted share unit (“RSU”) and performance restricted share unit (“PRSU”) awards granted in 2017, 2018, and 2019 that are unvested as of the Separation Date, pro-rated based on your service through such date (and in the case of the PRSUs, the total number of shares relating to the awards to be determined based on Company performance against the applicable goals as of such date), which will be determined by multiplying the number of shares relating to such RSU and PRSU awards by the closing market price per share of the Company’s common stock on the Separation Date (the “Closing Price”), plus the value of your vested in-the-money stock options as of the Effective Date, which amount will be determined by multiplying the number of shares relating to such in-the-money stock options by the difference between the Closing Price and exercise price per share. 

 

 

 

Page 5

 

 

The final amount to be paid in Icelandic króna using the exchange rate as of December 31, 2019. 

 

You will not be entitled to any severance payments or benefits from the Company except as stated in this letter.

 

Confidentiality

 

Recognizing that the knowledge, information and relationship with customers, suppliers and agents, and the knowledge of the Company’s and its affiliates business methods, systems, plans and polices with which you are familiar or accessible, are valuable and unique assets of the Company, you agree that you will not otherwise disclose, publish, or furnish to any person, firm or organization any confidential or proprietary information, systems, programs, know-how, or trade secrets or any other knowledge information documents or materials, the confidentiality of which the Company and its affiliates take reasonable measures to protect, that you acquired or had access to during your employment.  However, you may disclose confidential information, either directly or indirectly, to a US or Icelandic government official, or to an attorney, solely for the purpose of reporting or investigating a suspected violation of law, or in a complaint or other document filed in a lawsuit or other proceeding, required by the court, if such filing is made under seal.  

 

Restrictive Covenants

 

 

Page 6

 

 

You understand and agree that the Non-compete Agreement dated June 12, 2014 and referenced in your Executive Severance Agreement will continue to be in full force and effect for one (1) year after the Separation Date. Competitors include any entity engaged or has plans to become engaged in the mining of bauxite, refining of alumina, smelting or rolling of aluminum or fabrication of any aluminum products.  You agree that you will not disparage Alcoa, its business, employees, officers, directors or agents; likewise, Alcoa, its subsidiaries, officers, directors, employees and agents will not disparage you.  Also, as a reminder, Alcoa stock incentive awards continue to be subject to forfeiture, under the terms of that program, to the extent you become associated with, employed by, render services to, or own any interest in any business that is in competition with Alcoa or if you engage in willful conduct that is injurious to Alcoa.

 

Release and Waiver

 

In consideration of the foregoing, and except as prohibited by law, you do release the Company, its subsidiaries, affiliates and its officers, employees, directors and agents for yourself, your heirs, executors and assigns from and against all claims of continued employment, or claims related to your termination of employment, and other causes of action, known by you or which reasonably should be known by you through your Separation Date (including, but not limited to, any claims you have had at any time to the date of your signing this agreement under Title VII of the Civil Rights Act of 1964, Age Discrimination in Employment Act, Employees Retirement Income Security Act, Americans with Disabilities Act, Rehabilitation Act, Family and Medical Leave Act, any tort or contract claims, or any Alcoa internal employment dispute process); damages, liabilities, expenses and costs whatsoever arising by reason of your employment or 

 

Page 7

 

 

termination with the Company.  Except as specifically stated herein, the foregoing is not intended to negatively impact your vested rights under any Company sponsored compensation or benefit plans and programs, including your rights under this letter agreement.

 

This letter sets forth your specific rights and your release of any and all legal claims you have against the Company.  You understand that you may have your own attorney review this letter.  This letter agreement and both parties’ obligations will be binding on all successors of the Company.  

 

Sincerely,

 

Alcoa Corporation

 

 

 

By  /s/ Leigh Ann Fisher

Leigh Ann Fisher

 

 

Agreed to and accepted this 10th day of July, 2019

 

 

 

By  /s/ Tómas Sigurðsson

Tómas Sigurðsson

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