Document:

exv10w1

Exhibit 10.1

EMPLOYMENT AGREEMENT

     EMPLOYMENT AGREEMENT (this “Agreement”) dated as of November 9, 2010, between KAISER ALUMINUM
CORPORATION, a Delaware corporation (the “Company”), and JACK A. HOCKEMA (the “Executive”).

     The Company wishes to continue to employ the Executive, and the Executive wishes to continue
his employment with the Company, on the terms and conditions set forth in this Agreement, which
constitutes an amendment and restatement of the Employment Agreement between the Company and the
Executive dated as of July 6, 2006, as previously amended.

     Accordingly, the Company and the Executive hereby agree as follows:

1. Employment; Duties and Acceptance.

     1.1. Employment Duties. The Company hereby agrees to employ the Executive for the
Term (as defined in Section 2.1), to render exclusive and full-time services to the Company, in the
capacity of president and chief executive officer of the Company and to perform such other duties
consistent with such position (including service as a director or officer of any affiliate of the
Company if elected) as may be assigned by the Board of Directors of the Company (the “Board”);
provided, however, that the Executive may serve on the Board of Directors of one other business at
any time during the Term that does not compete with the Company and may participate in civic,
charitable and industry organizations to the extent that such participation does not materially
interfere with the performance of his duties hereunder. The Executive’s title shall be President
and Chief Executive Officer, or such other titles of at least equivalent level consistent with the
Executive’s duties from time to time as may be assigned to the Executive by the Board, and the
Executive shall have all authorities as are customarily and ordinarily exercised by executives in
similar positions in similar businesses in the United States. The Executive shall report solely to
the Board. The Company agrees to use its best efforts to cause the Executive to be elected to the
Board and to have the Executive serve as a member of the Board throughout his service during the
Term.

     1.2. Acceptance. The Executive hereby accepts such employment and agrees to render
the services described above. During the Term, and consistent with the above, the Executive agrees
to serve the Company faithfully and to the best of the Executive’s ability, to devote the
Executive’s entire business time, energy and skill to such employment, and to use the Executive’s
best efforts, skill and ability to promote the Company’s interests.

     1.3. Location. The duties to be performed by the Executive hereunder shall be
performed primarily at the Company’s offices in Foothill Ranch, California or such other location
as mutually agreed by the parties, subject to reasonable travel requirements consistent with the
nature of the Executive’s duties from time to time on behalf of the Company. The Executive shall
not be required to change his principal residence in the event the Company relocates its offices.

 

 

2. Term of Employment.

     2.1. Term. The term of the Executive’s employment under this Agreement (the “Term”)
shall continue until the earlier of (i) July 6, 2015 and (ii) such earlier date on which the Term
is terminated pursuant to Section 4.

3. Compensation; Benefits.

     3.1. Salary. As compensation for the services to be rendered pursuant to this
Agreement, the Company agrees to pay to the Executive during the Term a base salary, payable
monthly in arrears, at the initial annual rate of $807,000 (as the same may be adjusted as provided
herein, the “Base Salary”). Each year during the Term, the Company shall review the Base Salary in
connection with the Company’s annual review of compensation matters and determine if, and by how
much, the Base Salary should be increased. Once the Base Salary has been increased hereunder, it
shall not be decreased without the Executive’s consent. All payments of Base Salary or other
compensation hereunder shall be less such deductions or withholdings as are required by applicable
law and regulations.

     3.2. Bonus. In addition to the amounts to be paid to the Executive pursuant to
Section 3.1, if the Company achieves 100% or more of the Company’s target objectives for a fiscal
year of the Company, such target objectives which are recommended by the Executive and approved by
the Compensation Committee of the Board (the “Compensation Committee”) not later than March 31 of
such year, the Executive shall receive an annual bonus (an “Annual Bonus”) equal to the product of
(i) the Executive’s Base Salary at the rate in effect at the end of such fiscal year and (ii)
68.5%. Should the Company achieve such target objectives in a fiscal year which are significantly
beyond expectations for the Company’s performance for such year, the 68.5% multiplier set forth in
clause (ii) of the preceding sentence shall be increased up to a maximum of 300% of the target
bonus opportunity (or 205.5% of Base Salary). A formula will be established to provide for
recognition of threshold objectives below such target objectives and for pro rata awards between
the threshold award opportunity and the maximum award opportunity. Any Annual Bonus earned
hereunder shall be payable not later than the 15th day of the third month following the
end of the fiscal year to which it relates.

     In the event that the Executive’s employment shall terminate other than on a date which is the
last day of a fiscal year of the Company, the Executive’s target Annual Bonus with respect to the
fiscal year in which employment terminates shall be prorated for the actual number of days of the
Executive’s employment under this Agreement during the fiscal year in which occurs the Executive’s
termination of employment, and such Annual Bonus shall be payable to the Executive within ten (10)
business days following such termination of employment. Notwithstanding the foregoing, the
Executive shall be entitled to no Annual Bonus in respect of or the fiscal year of the Company in
which his Employment terminates if such termination is pursuant to Section 4.4.

     3.3. [Intentionally Left Blank]

     3.4. Incentive Compensation. Each fiscal year, the Executive will be eligible to
receive grants of long-term incentive compensation, including, but not limited to equity awards
(such as restricted stock, stock options and performance shares) having a target economic value

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of 227% of the Base Salary for the fiscal year, on similar terms as grants made to senior
executives; provided, however, that (i) 36% of the target value of the long-term incentive grant
shall be in the form of restricted stock and 64% of the target value of the long-term incentive
grant shall be in the form of performance shares, and (ii) in the event of a termination of the
Executive’s employment, other than pursuant to Section 4.4, the Executive’s vested interest in each
outstanding grant shall be not less favorable than (a) with respect to shares of restricted stock
and performance shares, the terms of grants made in connection with the Company’s 2010 long-term
incentive compensation program, and (b) with respect to all other grants, had such grant provided
for vesting in proportion to the actual number of days of the Executive’s employment during the
applicable vesting period over the total number of days in such vesting period.

     3.5. Business Expenses. The Company shall pay or reimburse the Executive for all
reasonable expenses actually incurred or paid by the Executive during the Term in the performance
of Executive’s services under this Agreement, subject to and in accordance with applicable expense
reimbursement and related policies and procedures as in effect from time to time. The Executive’s
right to expense reimbursement shall not be subject to liquidation or exchange for another benefit.

     3.6. Vacation. During each year of the Term, the Executive shall be entitled to a
paid vacation period or periods of four (4) weeks taken in accordance with applicable vacation
policy as in effect from time to time.

     3.7. Benefits; Perquisites. During the Term, the Executive shall be entitled to
participate in those retirement plans, deferred compensation plans, group insurance, life, medical,
dental, disability and other benefit plans of the Company at the same level as those benefits are
provided by the Company from time to time to senior executives of the Company generally. Also,
during the Term, the Executive shall be entitled to fringe benefits and perquisites at the same
level as those benefits are provided by the Company from time to time to senior executives of the
Company generally. However, nothing herein shall require the Company to establish and/or maintain
any such plans.

     3.8. Legal Expenses. The Company agrees to pay the legal fees and expenses incurred
by the Executive in connection with the negotiation and consummation of this Agreement.

4. Termination.

     4.1. General. Following any termination of the Executive’s employment, the Company
shall pay or provide to the Executive, or his estate or beneficiary, as the case may be, (i) Base
Salary earned through the date of such termination; (ii) except in the case of a termination
described in Section 4.4, any earned, but unpaid, annual cash incentive or other incentive awards,
including the Executive’s Annual Bonus earned pursuant to Section 3.2; (iii) a payment representing
the Executive’s accrued but unpaid vacation; (iv) any vested, but not forfeited benefits on the
date of such termination under the Company’s employee benefit plans, as determined in accordance
with the terms of such plans but subject to the provisions of Section 3.4; and (v) benefit
continuation and conversion rights to which the Executive is entitled under the

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Company’s employee benefit plans. The payments described above in Sections 4.1(i) and (iii)
will be paid in the 30-day period following the date of the Executive’s termination of employment.

     4.2. Death. If the Executive shall die during the Term, the Term shall immediately
terminate and the Executive shall be entitled to no further payments or benefits hereunder, except
for those payments and benefits described in Section 4.1. All outstanding equity grants shall vest
in the manner provided in the applicable award (subject to the provisions of Section 3.4), and any
vested but unexercised grants shall become exercisable and shall remain so for the period
commencing on the date of such termination through the second anniversary of such termination.

     4.3. Disability. If during the Term the Executive shall become physically or mentally
disabled (a “Disability”), whether totally or partially, such that the Executive is unable to
perform the Executive’s principal services hereunder for a period of not less than ninety (90)
consecutive days, the Company may at any time after the last day of such period (provided that such
disability is continuing), by written notice to the Executive, terminate the Term. Upon
termination under this Section 4.3, all outstanding equity grants shall vest in the manner provided
in the applicable award (subject to the provisions of Section 3.4), and any vested but unexercised
grants shall become exercisable and shall remain so for the period commencing on the date of such
termination through the second anniversary of such termination. In addition to those payments and
benefits described in Section 4.1, the Executive shall be entitled to payments made to the
Executive pursuant to a Company insurance plan.

     4.4. For Cause; Without Good Reason Prior to Age 65. If the Company terminates the
Executive’s employment for Cause or, prior to age 65, the Executive terminates his employment other
than for Good Reason, the Term shall terminate immediately and (i) the Executive shall be entitled
to receive no further amounts or benefits hereunder, except those payments and benefits described
in Section 4.1 or as required by law, (ii) all unvested equity grants pursuant to Section 3.4 shall
be immediately forfeited, and (iii) all vested but unexercised equity grants shall be forfeited on
the date which is ninety (90) days following such termination. For purposes of this Agreement,
“Cause” shall mean the Executive (A) being convicted of, or pleading guilty or no contest to, a
felony (except for motor vehicle violations); (B) engaging in conduct that constitutes gross
misconduct or fraud in connection with the performance of his duties to the Company, or (C)
materially breaching this Agreement which the Executive does not cure within thirty (30) days after
the Company provides written notice of such breach to the Executive. The Executive shall not
terminate his employment without Good Reason prior to the date which is thirty (30) days following
the date on which the Executive provides written notice of such termination to the Company;
provided, however, that the Company may waive such notice period in writing.

     4.5. Without Cause; For Good Reason. If during the Term the Company terminates the
Executive’s employment without Cause or if the Executive terminates his employment with Good
Reason, the Term shall immediately terminate and the Executive shall be entitled to no further
payments or benefits hereunder other than those payments and benefits described in Section 4.1,
except: (i) the Company shall make a lump sum payment to the Executive within ten (10 ) business
days of such termination in an amount equal to two hundred percent (200%) of the sum of the Base
Salary plus target Annual Bonus opportunity for the fiscal year in which occurs the Executive’s
termination of employment; (ii) continuing receipt of group insurance, life, medical, dental,
disability and other similar benefits described in Section 3.7 (to the extent to which such

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are in place from time to time, but excluding perquisites) during the twenty-four month period
commencing on the date of such termination; and (iii) all outstanding equity grants shall vest in
the manner provided in the applicable award (subject to the provisions of Section 3.4), and any
vested but unexercised grants shall become exercisable and shall remain so for the period
commencing on the date of such termination through the second anniversary of such termination.

     For purposes of this Agreement, “Good Reason” shall mean, without the Executive’s consent, the
occurrence of any of the following during the Term: (A) any material reduction in the Executive’s
Base Salary, target bonus opportunity or benefits pursuant to Section 3 of this Agreement; (B) a
material change in the Executive’s position causing it to be of materially less stature or
responsibility, or a change in the Executive’s duties, authorities, responsibilities or reporting
relationship; (C) the Company materially breaches this Agreement; or (D) the Executive is not
nominated for election to the Board, or the Executive is not timely renominated for election to the
Board or is involuntarily removed from the Board under circumstances that would not constitute
Cause or Disability hereunder; provided, however, that the Executive must provide written notice to
the Company of the existence of Good Reason no later than 90 days after its initial existence and
the Company shall have a period of 30 days following receipt of such written notice during which it
may remedy in all material respects the Good Reason condition identified in such written notice;
and provided further that the Executive must terminate employment with the Company no less than two
years following the initial existence of the Good Reason condition identified in such written
notice. The Company shall not terminate the Executive’s employment without Cause prior to the date
which is thirty (30) days following the date on which the Company provides written notice of such
termination to the Executive; provided, however, that the Executive may waive such notice period in
writing.

     Notwithstanding anything to the contrary in clause (i) immediately above, if the Executive
constitutes a “key employee” as defined in Section 416(i) of the Internal Revenue Code and as
applied under Section 409A of the Internal Revenue Code at such termination, the payment under
clause (i) immediately above shall be paid on the first business day following the sixth month
anniversary of the Executive’s termination of employment if necessary to comply with Section 409A
of the Internal Revenue Code and regulations issued thereunder. In the event coverage
for medical benefits (including dental, vision and similar benefits) under clause (ii) extends
beyond the period during which the Executive would be entitled to continuation coverage under a
group health plan by reason of the Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA),
or any successor statute, and would otherwise result in taxable income to the Executive or his
dependents, the Executive or his dependents will be required for each month after the maximum
period of COBRA coverage to pay the full cost of such coverage.

     4.6. Change of Control.

          4.6.1 In the event of a Change of Control, the Executive shall become fully vested in all
outstanding equity grants as of the date of the Change of Control. If during the Term the Company
terminates the Executive’s employment without Cause or the Executive terminates his employment with
Good Reason, in each case within two (2) years following a Change of Control, the Term shall
immediately terminate and the Executive shall be entitled to no further payments or benefits
hereunder other than those payments and benefits described in Section 4.1, except: (i) the Company
shall make a lump sum payment to the Executive within ten

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(10) business days of such termination in an amount equal to three hundred percent (300%) of
the sum of the Base Salary plus target Annual Bonus opportunity for the fiscal year in which occurs
the Executive’s termination of employment; (ii) continuing receipt of group insurance, life,
medical, dental, disability and other similar benefits described in Section 3.7 (to the extent to
which such are in place from time to time, but excluding perquisites) during the thirty-six month
period commencing on the date of each termination; and (iii) any previously unvested grants shall
become exercisable and all outstanding grants shall remain exercisable for the period commencing on
the date of such termination through the earlier the second anniversary of such termination. If
the Executive constitutes a “key employee” as defined in Section 416(i) of the Internal Revenue
Code and as applied under Section 409A of the Internal Revenue Code at such termination of
employment, the payment due under clause (i) immediately above shall be paid on the first business
day following the sixth month anniversary of Executive’s termination of employment if necessary to
comply with Section 409A of the Internal Revenue Code and regulations issued thereunder.
In the event coverage for medical benefits (including dental, vision and similar benefits)
under clause (ii) extends beyond the period during which the Executive would be entitled to
continuation coverage under a group health plan by reason of the Consolidated Omnibus Budget
Reconciliation Act of 1985 (COBRA), or any successor statute, and would otherwise result in taxable
income to the Executive or his dependents, the Executive or his dependents will be required for
each month after the maximum period of COBRA coverage to pay the full cost of such coverage.

          4.6.2 For purposes of this Agreement, a “Change of Control” shall be deemed to occur upon: (i)
the sale, lease, conveyance or other disposition of all or substantially all of the Company’s
assets as an entirety or substantially as an entirety to any person, entity or group of persons
acting in concert other than in the ordinary course of business; (ii) any transaction or series of
related transactions (as a result of a tender offer, merger, consolidation, purchase or otherwise)
that results in any Person (as defined in Section 13(h)(8)(E) under the Securities Exchange Act of
1934) other than the Union VEBA Trust becoming the beneficial owner (as defined in Rule 13d-3 under
the Securities Exchange Act of 1934), directly or indirectly, of 20% or more of the aggregate
voting power of all classes of common equity of the Company, except if such Person is (w) a
subsidiary of the Company, (x) an employee benefit plan for employees of the Company or (y) a
company formed to hold the Company’s common equity securities and whose shareholders constituted,
at the time such company became such holding company, substantially all the shareholders of the
Company; or (iii) a change in the composition of the Board over a period of twenty-four (24)
consecutive months or less such that a majority of the then current Board members ceases to be
comprised of individuals who either (a) have been Board members continuously since the beginning of
such period, or (b) have been elected or nominated for election as Board members during such period
by at least a majority of the Board members described in clause (a) who were still in office at the
time such election or nomination was approved by the Board.

          4.6.3. Notwithstanding any provision of this Agreement to the contrary, if any amount or
benefit to be paid or provided under this Agreement would be an “Excess Parachute Payment” within
the meaning of Section 280G of the Code but for the application of this sentence, then the payments
and benefits to be paid or provided under this Agreement will be reduced to the minimum extent
necessary (but in no event to less than zero) so that no portion of any such payment or benefit, as
so reduced, constitutes an Excess Parachute Payment; provided,

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however, that the foregoing reduction will be made only if and to the extent that such
reduction would result in an increase in the aggregate payment and benefits to be provided,
determined on an after-tax basis (taking into account the excise tax imposed pursuant to Section
4999 of the Code, any tax imposed by any comparable provision of state law, and any applicable
federal, state and local income and employment taxes). The fact that the Executive’s right to
payments or benefits may be reduced by reason of the limitations contained in this Section 4.6.3
will not of itself limit or otherwise affect any other rights of the Executive other than pursuant
to this Agreement. In the event that any payment or benefit intended to be provided under this
Agreement or otherwise is required to be reduced pursuant to this Section 4.6.3, the Company will
effect such reduction by first reducing the payment described in clause (i) of Section 4.6.1, and
then, to the extent necessary, reducing the benefits described in clause (ii) of Section 4.6.1 in
the sequence listed in such clause and then, to the extent still necessary, reducing the benefits
described in clause (iii) of Section 4.6.1, beginning with the most recently granted awards.

          4.6.4. All computations and determinations relevant to Section 4.6.3 shall be made by an
independent accounting firm selected and reimbursed by the Company (the “Accounting Firm”), subject
to the Executive’s consent (not to be unreasonably withheld), which firm may be the Company’s
accountants. If the Accounting Firm determines that any amounts are Excess Parachute Payments, the
Accounting Firm shall provide its determination (the “Determination”), together with detailed
supporting calculations both to the Company and the Executive by no later than ten (10) days
following its Determination, if applicable, or such earlier time as is requested by the Company or
the Executive (if the Executive reasonably believes that any amounts are Excess Parachute
Payments). If the Accounting Firm determines that no amounts are Excess Parachute Payments, it
shall furnish the Executive and the Company with a written statement that such Accounting Firm has
so concluded that no excise tax is payable (including the reasons therefor) and that the Executive
has substantial authority not to report any excise tax on his federal income tax. The Company and
Executive shall furnish to the Accounting Firm such information and documents as the Accounting
Firm may reasonably request in order to make a determination hereunder. The Accounting Firm shall
be required to provide its Determination within sixty (60) days after the date of the Executive’s
termination, and the Company shall be responsible for any income tax, penalty or interest liability
incurred as a result of delay by the Accounting Firm. The Accounting Firm shall make its
Determination on the basis of substantial authority and shall provide opinions to that effect to
both the Company and the Executive upon the request of either of them.

     4.7. End of Term and Retirement. At the end of the Term or upon retirement on or
after age 65 during the Term, the Executive shall be entitled to no further payments or benefits,
except for those payments and benefits described in Section 4.1. All outstanding equity grants
shall vest in the manner provided in the applicable award (subject to the provisions of Section
3.4), and any vested but unexercised grants shall become exercisable and shall remain so for the
period commencing on the expiration of the Term and continuing through the second anniversary of
the end of the Term.

     4.8. No Mitigation. Upon termination of the Executive’s employment with the Company,
the Executive shall be under no obligation to seek other employment or otherwise to mitigate the
obligations of the Company under this Agreement.

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     4.9. Option Exercise. For the avoidance of doubt, to the extent that any provision of
this Agreement provides for the continued exercise of Options following the Executive’s termination
of employment, such Options shall be exercisable for the period provided in the Agreement, but in
no event beyond the end of the original term of such Options.

     4.10. Section 409A.

          4.10.1 To the extent that this Agreement provides for the payment of “deferred compensation”
(within the meaning of Section 409A) to the Executive or the Executive’s beneficiaries upon or as a
result of the Executive’s termination of employment, the Executive shall be considered to have
experienced a termination of employment as of the date that the Executive incurs a “separation from
service” within the meaning of Section 409A.

          4.10.2 Each payment or benefit to which the Executive becomes entitled under this Agreement
will be considered, and is hereby designated as, a separate payment for purposes of Section 409A
(and consequently the Executive’s entitlement to such payment or benefit will not be considered an
entitlement to a single payment of the aggregate amount to be paid). Any reimbursement of expenses
by the Company under this Agreement shall be made not later than December 31st of the calendar year
following the calendar year in which the expense is incurred, or such longer period as permitted by
applicable regulations without resulting in the such reimbursement being “deferred compensation”
(within the meaning of Section 409A). No reimbursement of expenses or in-kind benefits provided in
one calendar year shall affect the expenses eligible for reimbursement, or in-kind benefits to be
provided, in any other calendar year. The Executive’s right to expense reimbursement shall not be
subject to liquidation or exchange for another benefit.

          4.10.3 If the Company makes a good faith determination that a payment under this Agreement (i)
constitutes a deferral of compensation for purposes of Section 409A, (ii) is made to the Executive
by reason of his separation from service, (iii) at the time such payment would otherwise be made,
the Executive is a “specified employee” within the meaning of Section 409A (and using the
identification methodology specified by the Company from time to time), and (iv) a delay in payment
is required in order to avoid the imposition of excise taxes under Section 409A and such delay is
not already provided for by the Agreement, then the payment shall be delayed until the earlier of
(A) the first business day following the six-month anniversary of the Executive’s separation from
service, or (B) the Executive’s death.

5. Protection of Confidential Information; Non-Competition.

     5.1. The Executive acknowledges that the Executive’s services will be unique, that they will
involve the development of Company-subsidized relationships with key customers, suppliers, and
service providers as well as with key Company employees and that the Executive’s work for the
Company will give the Executive access to highly confidential information not available to the
public or competitors, including trade secrets and confidential marketing, sales, product
development and other data and information which it would be impracticable for the Company to
effectively protect and preserve in the absence of this Section 5 and the disclosure or
misappropriation of which could materially adversely affect the Company. Accordingly, the
Executive agrees:

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          5.1.1 except in the course of performing the Executive’s duties provided for in Section 1.1,
not at any time, whether before, during or after the Executive’s employment with the Company, to
divulge to any other entity or person any confidential information acquired by the Executive
concerning the Company’s or its affiliates’ financial affairs or business processes or methods or
their research, development or marketing programs or plans, or any other of its or their trade
secrets. In the event that the Executive is requested or required to make disclosure of
information subject to this Section 5.1.1 under any court order, subpoena or other judicial
process, then, except as prohibited by law, the Executive will promptly notify the Company, take
all reasonable steps requested by the Company to defend against the compulsory disclosure and
permit the Company to control with counsel of its choice any proceeding relating to the compulsory
disclosure. The Executive acknowledges that all information, the disclosure of which is prohibited
by this section, is of a confidential and proprietary character and of great value to the Company.

          5.1.2 to deliver promptly to the Company on termination of the Executive’s employment with the
Company, or at any time that the Company may so request, all confidential memoranda, notes,
records, reports, manuals, drawings, blueprints and other documents (and all copies thereof)
relating to the Company’s business and all property associated therewith, which the Executive may
then possess or have under the Executive’s control.

     5.2. In consideration of the Company’s entering into this Agreement, the Executive agrees that
at all times during the Term and thereafter, until the first anniversary of the date of the
termination of the Term for any reason, the Executive shall not, directly or indirectly, for
himself or on behalf of or in conjunction with, any other person, company, partnership,
corporation, business, group, or other entity (each, a “Person”):

          5.2.1 provide services to a “Competitor” (as defined below), as an officer, director,
shareholder, owner, partner, joint venturer, or in any other capacity, whether as an executive,
independent contractor, consultant, advisor, or sales representative; or

          5.2.2 call upon any Person who is or that is, at such date of termination, engaged in activity
on behalf of the Company or any affiliate of the Company for the purpose or with the intent of
enticing such Person to cease such activity on behalf of the Company or such affiliate.

     For purposes of this Agreement, “Competitor” means, on any date, a person or entity that is
primarily engaged in a material line of business conducted by the Company.

     5.3. If the Executive commits a breach of any of the provisions of Section 5.1 or 5.2 hereof,
the Company shall have the right and remedy to have the provisions of this Agreement specifically
enforced by any court having equity jurisdiction, it being acknowledged and agreed that any such
breach will cause irreparable injury to the Company and that money damages will not provide an
adequate remedy to the Company, and, if the Executive attempts or threatens to commit a breach of
any of the provisions of Section 5.1 or 5.2, the right and remedy to be granted a preliminary and
permanent injunction in any court having equity jurisdiction against the Executive with respect to
the attempted or threatened breach, it being agreed that each of such rights and remedies shall be
independent of the others and shall be severally enforceable, and that

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all of such rights and remedies shall be in addition to, and not in lieu of, any other rights
and remedies available to the Company under law or in equity.

     5.4. If any of the covenants contained in Section 5.1, 5.2 or 5.3, or any part thereof,
hereafter are construed to be invalid or unenforceable, the same shall not affect the remainder of
the covenant or covenants, which shall be given full effect, without regard to the invalid
portions.

     5.5. The period during which the prohibitions of Section 5.2 are in effect shall be extended
by any period or periods during which the Executive is in violation of Section 5.2.

     5.6. If any of the covenants contained in Section 5.1 or 5.2, or any part thereof are held to
be unenforceable because of the duration of such provision or the area covered thereby, the parties
agree that the court making such determination shall have the power to reduce the duration and/or
area of such provision so as to be enforceable to the maximum extent permitted by applicable law
and, in its reduced form, said provision shall then be enforceable.

     5.7. The parties hereto intend to and hereby confer jurisdiction to enforce the covenants
contained in Sections 5.1, 5.2 and 5.3 upon the courts of any state within the geographical scope
of such covenants. In the event that the courts of any one or more of such states shall hold such
covenants wholly unenforceable by reason of the breadth of such covenants or otherwise, it is the
intention of the parties hereto that such determination not bar or in any way affect the Company’s
right to the relief provided above in the courts of any other states within the geographical scope
of such covenants as to breaches of such covenants in such other respective jurisdictions, the
above covenants as they relate to each state being for this purpose severable into diverse and
independent covenants.

     5.8. Executive and the Company agree and acknowledge that one-third of any payment
contemplated by Section 4.6.1(i) of this Agreement following a Change of Control and the
termination of Executive’s employment is intended to be additional consideration of Executive’s
obligations under Section 5.2 of this Agreement in recognition of the additional value to the
Company of Executive’s obligations under Section 5.2 of this Agreement following a Change of
Control and the termination of Executive’s employment.

6. Inventions and Patents.

     The Executive agrees that all processes, technologies and inventions (collectively,
“Inventions”), including new contributions, improvements, ideas and discoveries, whether patentable
or not, conceived, developed, invented or made by him during the Term shall belong to the Company,
provided that such Inventions grew out of the Executive’s work with the Company or any of its
subsidiaries or affiliates, are related in any manner to the business (commercial or experimental)
of the Company or any of its subsidiaries or affiliates or are conceived or made on the Company’s
time or with the use of the Company’s facilities or materials. The Executive shall further (a)
promptly disclose such Inventions to the Company; (b) assign to the Company, without additional
compensation, all patent and other rights to such Inventions for the United States and foreign
countries; (c) sign all papers necessary to carry out the foregoing; and (d) give testimony in
support of the Executive’s inventorship.

10

 

7. Intellectual Property.

     Notwithstanding and without limiting the provisions of Section 6, the Company shall be the
sole owner of all the products and proceeds of the Executive’s services hereunder, including, but
not limited to, all materials, ideas, concepts, formats, suggestions, developments, arrangements,
packages, programs and other intellectual properties that the Executive may acquire, obtain,
develop or create in connection with or during the Term, free and clear of any claims by the
Executive (or anyone claiming under the Executive) of any kind or character whatsoever (other than
the Executive’s right to receive payments hereunder), the Executive shall, at the request of the
Company, execute such assignments, certificates or other instruments as the Company may from time
to time deem necessary or desirable to evidence, establish, maintain, perfect, protect, enforce or
defend its right, title or interest in or to any such properties.

8. Indemnification.

     In addition to any rights to indemnification to which the Executive is entitled under the
Company’s charter and by-laws, to the extent permitted by applicable law, the Company will
indemnify, from the assets of the Company supplemented by insurance in an amount customary for
corporations similar in size and value to the Company and engaged in business activities similar to
the business activities of the Company, the Executive at all times, during and after the Term, and,
to the maximum extent permitted by applicable law, shall pay the Executive’s expenses (including
reasonable attorneys’ fees and expenses, which shall be paid in advance by the Company as incurred,
subject to recoupment in accordance with applicable law) in connection with any threatened or
actual action, suit or proceeding to which the Executive may be made a party, brought by any
shareholder of the Company directly or derivatively or by any third party by reason of any act or
omission or alleged act or omission in relation to any affairs of the Company or any subsidiary or
affiliate of the Company of the Executive as an officer, director or employee of the Company or of
any subsidiary or affiliate of the Company. The Company shall maintain during the Term and
thereafter insurance coverage sufficient to satisfy any indemnification obligation of the Company
arising under this Section 8.

9. Notices.

     All notices, requests, consents and other communications required or permitted to be given
hereunder shall be in writing and shall be deemed to have been duly given if delivered personally,
one day after sent by overnight courier or three days after mailed first class, postage prepaid, by
registered or certified mail as follows (or to such other address as either party shall designate
by notice in writing to the other in accordance herewith):

     If to the Company, to:

Kaiser Aluminum Corporation

27422 Portola Parkway, Suite 200

Foothill Ranch, California 92610

Attn: General Counsel

11

 

     If to the Executive, to the Executive’s principal residence as reflected in the records of the
Company.

10. General.

     10.1. This Agreement shall be governed by and construed and enforced in accordance with the
laws of the State of Delaware applicable to agreements made between residents thereof and to be
performed entirely in Delaware.

     10.2. The section headings contained herein are for reference purposes only and shall not in
any way affect the meaning or interpretation of this Agreement.

     10.3. This Agreement sets forth the entire agreement and understanding of the parties relating
to the subject matter hereof and supersedes all prior agreements, arrangements and understandings,
written or oral, relating to the subject matter hereof. No representation, promise or inducement
has been made by either party that is not embodied in this Agreement, and neither party shall be
bound by or liable for any alleged representation, promise or inducement not so set forth.

     10.4. This Agreement, and the Executive’s rights and obligations hereunder, may not be
assigned by the Executive, nor may the Executive pledge, encumber or anticipate any payments or
benefits due hereunder, by operation of law or otherwise. The Company may assign its rights,
together with its obligations, hereunder (i) to any affiliate or (ii) to a third party in
connection with any sale, transfer or other disposition of all or substantially all of any business
to which the Executive’s services are then principally devoted, provided that no assignment
pursuant to clause (ii) shall relieve the Company from its obligations hereunder to the extent the
same are not timely discharged by such assignee. In this regard, the parties acknowledge that
Executive shall be employed by the Company’s subsidiary, Kaiser Aluminum Fabricated Products, LLC,
a Delaware limited liability company (“KAFP”), and that while Executive is employed by KAFP, KAFP
shall assume the payment obligations of the Company under this Agreement subject to the proviso set
forth above in the preceding sentence which states that the Company shall not be relieved of its
obligations hereunder to the extent that the obligations assumed by KAFP are not timely discharged
by KAFP.

     10.5. The respective rights and obligations of the parties hereunder shall survive any
termination of this Agreement or the Term to the extent necessary to the intended preservation of
such rights and obligations.

     10.6. This Agreement may be amended, modified, superseded, canceled, renewed or extended and
the terms or covenants hereof may be waived, only by a written instrument executed by both of the
parties hereto, or in the case of a waiver, by the party waiving compliance. The failure of either
party at any time or times to require performance of any provision hereof shall in no manner affect
the right at a later time to enforce the same. No waiver by either party of the breach of any term
or covenant contained in this Agreement, whether by conduct or otherwise, in any one or more
instances, shall be deemed to be, or construed as, a further or continuing waiver of any such
breath, or a waiver of the breach of any other term or covenant contained in this Agreement.

12

 

     10.7. This Agreement may be executed in two or more counterparts, each of which shall be
deemed to be an original but all of which together will constitute one and the same instrument.

11. Dispute Resolution.

     Subject to the rights of the Company pursuant to Section 5.3 above, any controversy, claim or
dispute arising out of or relating to this Agreement, the breach thereof, or the Executive’s
employment by the Company shall be settled by arbitration with one arbitrator. The arbitration
will be administered by the American Arbitration Association in accordance with its National Rules
for Resolution of Employment Disputes. The arbitration proceeding shall be confidential, and
judgment on the award rendered by the arbitrator may be entered in any court having jurisdiction.
Any such arbitration shall take place in the Orange County, California, or in any other mutually
agreeable location. In the event any judicial action is necessary to enforce the arbitration
provisions of this Agreement, sole jurisdiction shall be in the federal and state courts, as
applicable, located in California. Any request for interim injunctive relief or other provisional
remedies or opposition thereto shall not be deemed to be a waiver of the right or obligation to
arbitrate hereunder. The Company shall pay or promptly reimburse the Executive for all reasonable
costs, fees and expenses relating to such dispute, including reasonable legal fees.

12. Subsidiaries; Affiliates; and Benefits.

     As used herein, the term “subsidiary” shall mean any corporation or other business entity
controlled directly or indirectly by the corporation or other business entity in question; the term
“affiliate” shall mean and include any corporation or other business entity directly or indirectly
controlling, controlled by or under common control with the corporation or other business entity in
question; and references to “benefits” and “benefit plans” shall include the benefits provided by
the Company and the Company’s subsidiaries from time to time to senior executives of the Company
generally and the underlying plans.

     IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first above
written.

	 	 	 	 	 
	 	KAISER ALUMINUM CORPORATION

 	 
	 	By:  	                                        /s/ John M. Donnan
 	 
	 	 	Name:  	John M. Donnan 	 
	 	 	Title:  	Senior Vice President and General Counsel 	 
	 
	 	 	 
	 	                                        /s/ Jack A. Hockema
 	 
	 	Jack A. Hockema 	 
	 	 	 
	 

13exv10w1

Exhibit 10.1

RELEASE AND SEPARATION AGREEMENT

     THIS RELEASE AND SEPARATION AGREEMENT (this “Agreement”), is made and entered into
this 11th day of November, 2010 (the “Effective Date”), by and between MEDCATH CORPORATION,
a Delaware corporation (“MedCath”), and DAVID BUSSONE, an individual resident of the State
of North Carolina (“Executive”).

     NOW, THEREFORE, for good and valuable consideration, the sufficiency and receipt of which is
hereby acknowledged, the parties do hereby agree, covenant and stipulate as follows:

     1. Resignation as an Officer. Executive has served as an officer of MedCath in the
capacity of Executive Vice President and President, Operations Division pursuant to the terms and
provisions of an Employment Agreement between MedCath and Executive dated as of September 1, 2009
(the “Employment Agreement”). Effective as of November 9, 2010, the Employment Agreement
is terminated without cause and Executive resigns as an officer of, and relinquishes all other
positions and responsibilities with, MedCath and each of its direct and indirect subsidiaries and
affiliates except as set forth in Paragraph 2.

     2. Continued Service. MedCath and Executive acknowledge and agree that during the
period from and after the Effective Date and continuing through December 10, 2010 (the
“Advisory Service Period”) Executive shall remain an employee of MedCath and render such
advisory services as MedCath may call upon him to furnish during normal business hours after
reasonable notice regarding operations matters or the defense or prosecution of litigation,
administrative charges or hearings and related matters with respect to issues arising during
Executive’s tenure with MedCath. Upon the expiration of the Advisory Service Period, Executive’s
employment by MedCath shall terminate.

     3. Compensation and Other Benefits.

     (a) For his service to MedCath through the Effective Date and during the Advisory Service
Period, Executive shall receive his current regular base salary, earned but unpaid bonus for the
2010 fiscal year and participate in all of the MedCath benefit plans and programs available to
senior executives, including the following benefit plans: group health, flexible spending account,
voluntary life insurance; long-term disability and personal accident insurance, provided
Executive enrolls for participation in such plans in a timely manner and pays appropriate
contributions. Executive shall also be eligible to participate through the expiration of the
Advisory Service Period in the MedCath 401(k) Plan. Except as provided in Paragraph 3(c), all
other benefits and perquisites shall cease as of the Effective Date, and Executive shall not be
eligible to accrue, earn or be granted any bonuses or equity incentive awards for or with respect
to any period after the Effective Date. Executive acknowledges and agrees that he shall not be
eligible to receive a distribution of his account under the MedCath 401(k) Plan until the
termination of his employment upon the expiration of the Advisory Service Period.

     (b) MedCath shall promptly reimburse Executive for reasonable business expenses incurred
during the Advisory Service Period in performing services hereunder, including all expenses of
travel and living expenses while away from home on business or at the request of and in the service
of MedCath, provided that such expenses are incurred and accounted for in accordance with the
policies and procedures established by MedCath.

     (c) In consideration of the release of MedCath by Executive, MedCath agrees:

     (i) to pay to Executive a lump sum severance payment of $637,500 on December 17, 2010
and a lump sum severance payment of $425,000 on May 20, 2011 (a total severance payment of
$1,062,500);

 

 

     (ii) that 51,327 unvested restricted shares awarded to Executive will become fully
vested upon the expiration of the Advisory Service Period, provided that such
shares, net of shares withheld for the payment of applicable withholding taxes, shall be
restricted and non-transferable until such time as a “Change in Control,” as defined by in
MedCath’s 2006 Stock Option and Award Plan has occurred; and

     (iii) to provide continued coverage under the Company’s group medical plan in
accordance with the terms thereof for a period ending on the earlier of (A) the second
anniversary of the expiration of the Advisory Service Period or (B) the date on which
Executive becomes eligible to be covered under comparable benefit plans of a new employer,
provided Executive shall be required to contribute an amount toward the cost of such
coverage during the Coverage Period that is equal to the cost paid by active Executives and
for purposes of applying the COBRA continuation requirements, the “qualifying event” shall
be the expiration of the Advisory Service Period.

     4. Non-Disparagement. Executive agrees that he will not communicate orally, in
writing or electronically (through, for example, the internet) at any place or time, generally,
specifically or by implication to any person or entity any opinions or comments regarding the
prospects, competence or skills of MedCath or its management or any facts, opinions or comments
that could reasonably be expected to reflect adversely upon MedCath or disparage, degrade, malign
or harm its reputation.

     5. Release of MedCath. Executive, for himself, his heirs, executors, administrators,
and assigns, hereby covenants and agrees that he irrevocably and unconditionally releases, acquits
and forever discharges MedCath, its predecessors, successors, parent companies, affiliates,
subsidiaries, and assigns, and their respective officers, directors, as well as each of MedCath’s
employees and agents (MedCath and MedCath’s officers, directors, employees, subsidiaries,
successors, parent companies, affiliates, assigns, and agents being collectively referred to herein
as the “Releasees”), or any of them, from any and all charges, complaints, claims,
liabilities, obligations, promises, demands, costs, losses, debts, and expenses (including
attorneys’ fees and costs actually incurred), of any nature whatsoever, in law or equity, arising
out of the Executive’s employment with MedCath or the termination of the Employment Agreement and
Executive’s employment with MedCath (other than any claim arising out of the breach by MedCath of
the terms of this Agreement), including, without limitation, all claims asserted or that could be
asserted by Executive against MedCath in any litigation arising from summonses and complaints filed
in federal, state or municipal court asserting any claim arising from any alleged violation by the
Releasees of any federal, state, or local statutes, ordinances, or common law, including, but not
limited to, the Age Discrimination in Employment Act, Title VII of the Civil Rights Act of 1964, as
amended, the Equal Pay Act, the Americans with Disabilities Act, the Fair Labor Standards Act, the
Executive Retirement Income Security Act of 1974, the Rehabilitation Act of 1973, the Civil Rights
Act of 1991, the Civil Rights Act of 1866, Section 1514A or and 1513(e) of Chapter 73 of Title 18
of the United States Code; and any other employment discrimination laws, as well as any other
claims based on constitutional, statutory, common law, or regulatory grounds, as well as any claims
based on theories of retaliation, wrongful or constructive discharge, breach of contract or implied
covenant, fraud, misrepresentation, intentional and/or negligent infliction of emotional distress,
or defamation, which Executive now has, owns, or holds, or claims to have, own, or hold, or which
Executive had, owned, or held, or claimed to have, own or hold at any time before execution of this
Agreement, against any or all of the Releasees. Notwithstanding the foregoing, Executive
specifically does not release any (i) claim that may arise from MedCath breach of this Agreement,
(ii) claim for the payment or provision of any and all benefits or payments under any of MedCath’s
benefit plans and programs in which Executive participated during his employment by MedCath or
(iii) rights granted to Executive under MedCath’s by-laws, charter or applicable law.

2

 

NOTE: This Agreement applies to age discrimination claims under the Age
Discrimination in Employment Act (the “ADEA”), 29 U.S.C. § 621 et seq., as
amended by the Older Workers Benefit Protection Act (the “OWBPA”) (these
laws prohibit age discrimination in employment or benefits as to individuals forty
years of age and older). Under the OWBPA, Executive has the right to consider this
Agreement for twenty-one days before accepting it. Before signing this Agreement,
Executive is advised to consult with an attorney of his choice, at the Executive’s
expense. Further, under the OWBPA Executive has the right to revoke this Agreement
at any time within the seven-day period following the date Executive signs this
Agreement. This Agreement shall not become effective or enforceable until the
seven-day revocation period expires. Finally, this Agreement does not interfere
with the Executive’s right to file a charge or participate in a proceeding conducted
by the Equal Employment Opportunity Commission (the “EEOC”); however,
Executive acknowledges and agrees that this Agreement does waive and release the
Executive’s ability to claim any monetary recovery or damages should the EEOC pursue
claims on the Executive’s behalf.

     6. No Pending Claims. Executive represents and warrants that he has not initiated or
filed any action, complaint, claim or charge against the Releasees with any federal, state or local
court or administrative agency, and that he will not do so at any time hereafter regarding matters
relating to arising out of his employment or retirement from employment, or any other matter
occurring on or before the date of execution of this Agreement. If any such action, complaint
claim or charge has been initiated on his behalf, he will use his best efforts to cause it to
immediately be withdrawn and dismissed with prejudice.

     7. Tax Withholding and Reporting. MedCath shall be entitled to withhold from the
benefits and payments described herein all income and employment taxes required to be withheld by
applicable law.

     8. Governing Law and Venue. The interpretation and enforcement of this Agreement
shall be governed by the internal laws and judicial decisions of the State of North Carolina,
without regard to any principles of conflicts of laws. Executive, for himself and his successors
and assigns, hereby expressly and irrevocably (a) consents to the exclusive jurisdiction of the
state or federal courts located in Charlotte, North Carolina for any action arising out of or
related to this Agreement, and (b) waives any and all objection to any such action based on venue
or forum non conveniens.

     9. Notices. Any notice or other communications to be given hereunder shall be deemed
to have been given or delivered when delivered by hand to the individuals named below or when
deposited in the United States mail, registered or certified, with proper postage and registration
or certification fees prepaid, addressed to the parties as follows (or to such other address as one
party shall give the other in the manner provided herein):

     If to MedCath, to:

MedCath Corporation

10720 Sikes Place, Suite 300

Charlotte, North Carolina 28277

Attn: Chief Executive Officer

with a copy to:

Hal A. Levinson, Esq.

Moore & Van Allen, PLLC

100 N. Tryon Street, Floor 47

Charlotte, North Carolina 28208-4003

3

 

     If to Executive, to the most recent address on MedCath’s employment records for Executive.

     10. Whole Agreement, Amendment and Severability. This document contains the whole and
entire understanding and agreement between the parties hereto, superseding any and all prior and
contemporaneous agreements, representations, promises, inducements and understandings of the
parties, including without limitation the Employment Agreement. There are no other understandings,
promises, covenants or agreements between the parties regarding the subject matter of this
Agreement, except as specifically set forth herein. This Agreement may not be amended, modified or
altered in any fashion except in writing executed by the parties hereto with the same formality as
with which this Agreement is executed. Executive understands and agrees that each clause of this
Agreement is a separate and independent clause, and that, if any clause should be found
unenforceable, such clause should be and is hereby severed from this Agreement and will not affect
the enforceability of any of the other clauses herein.

     11. Right to Revoke Agreement. If Executive desires to revoke this Agreement during
the seven-day period following the Executive’s signing of this Agreement, Executive shall provide
notice to MedCath no later than midnight on the last day of the seven-day revocation period.
Notice should be given by submitting a written statement of revocation via hand delivery, mail or
e-mail to Art Parker at MedCath Corporation, 10720 Sikes Place, Suite 300, Charlotte, NC 28277 or
at e-mail address art.parker@medcath.com. Notice may also be given by calling or leaving a voice
mail message for Art Parker at 704-815-7608 before midnight on the last day of the seven-day
revocation period, then immediately confirming the call or message with written notice as stated
above. Executive’s revocation must be in writing to be effective. This Agreement shall not become
effective and enforceable until Executive’s right under this Paragraph to revoke this Agreement has
expired.

     12. Compliance with Older Workers Benefit Protection Act: By signing this Agreement,
Executive specifically acknowledges and represents that:

     (a) Executive has been given a period of twenty-one (21) days to consider the
terms of this Agreement;

     (b) the terms of this Agreement are clear and understandable to Executive;

     (c) the terms and benefits set forth in this Agreement were individually
negotiated between Executive and MedCath, and Executive was not offered, nor is he
participating in, an exit incentive or employment termination program offered to a
group or class of Company Executives;

     (d) the benefits MedCath will provide to Executive under this Agreement exceed
the benefits that Executive was otherwise entitled to receive as an employee of
MedCath;

     (e) Executive has been advised to consult with an attorney (at the Executive’s
expense) prior to signing this Agreement; and

     (f) Executive has been advised that he has the right to revoke this Agreement
at any time within the seven-day period following his signature of this Agreement.

     13. Public Filing. Executive acknowledges that MedCath is required to file an
executed copy of this Agreement with the Securities and Exchange Commission to comply with
the federal securities laws and that such filing may be accessed by the public.

     14. No Assignability. Neither this Agreement, nor any right or interest hereunder,
shall be assignable by Executive, Executive’s beneficiaries, or legal representatives. MedCath
shall retain the right to assign this Agreement.

4

 

     IN WITNESS WHEREOF, MedCath has caused this Agreement to be executed by a duly authorized
officer, and Executive has hereunto set his hand and seal, all as of the day and year first above
written.

	 	 	 	 	 
	 

	 	/s/ David Bussone

David Bussone
	 
	 	 	 	 
	 

	 	MEDCATH CORPORATION
	 
	 	 	 	 
	 

	 	By:
	 	/s/ James A. Parker
	 

	 	Name:
	 	James A. Parker
	 

	 	Title:
	 	Executive Vice President and

Chief Financial Officer

5

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