Document:

Form of Performance Shares Agreement

 Exhibit 10.1 
 

 
 PERFORMANCE SHARES AGREEMENT 
 Under the Bristol-Myers Squibb Company 
 2007 Stock Award and Incentive Plan 
 2008-2010 Performance Cycle 
 This Performance
Shares Agreement (the “Agreement”) confirms the authorization of a grant of a Performance Award, by BRISTOL-MYERS SQUIBB COMPANY, a Delaware corporation (the “Company”), to the Participant named below (“you”), under
Sections 6(i) and 7 of the 2007 Stock Award and Incentive Plan (the “Plan”), such Performance Award to be designated as “Performance Shares,” on the terms and conditions specified in this Agreement, as follows: 
  
  

	
	 Participant:
                                
 Award Date:
                                  
  
 Target Number of Performance Shares relating to the 2008-2010 performance cycle:
 2008 Performance Shares (08-10
Cycle):                      
 2009 Performance Shares (08-10 Cycle):                      
 2010 Performance Shares (08-10
Cycle):                      
 Total Performance Shares (08-10 Cycle):                     
  
 The year referenced for each of these three “tranches” is the “Performance Year”
for that tranche.
  
 Range at which Performance Shares may be earned for varying
performance:
 Threshold:       % of Target
 Target:         100% of Target
 Maximum:       % of Target
  
 Performance Goal and Earning Date: A separate Performance Goal will be set for each tranche by March 30 of the Performance Year, specifying the number of Performance
Shares that may be earned for specified levels of performance. The Earning Date will be December 31 of the Performance Year. The Performance Goal for the 2008 Performance Shares is attached as Exhibit A hereto.
  
 Vesting: Earned Performance Shares will vest at the date between January 1, 2011 and
March 15, 2011, at which the Committee determines and certifies the extent to which the Performance Goals for the 2010 Performance Shares have been met, subject to earlier vesting at the times indicated in Sections 6 (including in connection
with certain terminations following a Change in Control) and 8.
  
 Settlement: Earned and
vested Performance Shares will be settled by delivery of one share of the Company’s Common Stock, $0.10 par value per share (“Shares”), for each Performance Share being settled. No dividend equivalents will accrue or be payable in
connection with Performance Shares. Settlement shall occur at the time specified in Section 4 hereof.

  

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	1.	PERFORMANCE SHARE AWARD 

 The Compensation and
Management Development Committee of the Board of Directors of Bristol-Myers Squibb Company (the “Committee”) has granted to you the opportunity to earn the 2008 Performance Shares as designated herein subject to the terms, conditions and
restrictions set forth in this Agreement. In addition, the Committee hereby indicates its intention to grant to you the opportunity to earn the 2009 Performance Shares and the 2010 Performance Shares for the 2008-2010 performance cycle and subject
to this Agreement; such grants shall become effective only at such time as the Committee has specified the Performance Goal for those Performance Shares (by March 30 of the relevant Performance Year), except as otherwise provided in this
Section 1 and in Sections 6(a) and 6(b). The target number of each tranche of Performance Shares and the kind of shares deliverable in settlement, the calculation of earnings per share as a Performance Goal, and other terms and conditions of
the Performance Shares are subject to adjustment in accordance with Section 11 hereof and Section 11(c) of the Plan. In the event of a Change in Control, you will become legally entitled to have the grant of Performance Shares specified
hereunder become effective (i) for the Performance Year in effect at the date of the Change in Control, at the time of the Change in Control (if the grant was not previously effective) if you were employed by the Company or a subsidiary or
affiliate immediately before the Change in Control, and (ii), for any Performance Year beginning after the year in which the Change in Control occurred, at the beginning of such Performance Year if you remain so employed at that time. In each case
relating to Performance Shares the grant of which is effective at or following a Change in Control, the Performance Goal for such Performance Shares shall be reasonably achievable and not more difficult to achieve in relation to the Company’s
budget for that Performance Year than the Performance Goal for any earlier Performance Year was in relation to the budget for that earlier Performance Year. 
  

	2.	CONSIDERATION 

 As consideration for grant of 2008
Performance Shares, you shall remain in the continuous employ of the Company and/or its Subsidiaries or Affiliates for at least one year from the Performance Cycle Start Date or such lesser period as the Committee shall determine in its sole
discretion, and no Performance Shares shall be payable until after the completion of such one year or lesser period of employment by you (subject to Section 6(c)). No 2009 Performance Shares or 2010 Performance Shares shall be granted hereunder
unless you have met the one-year continuous employment requirement specified in this Section 2, measured from the Performance Cycle Start Date. 
  

	3.	PERFORMANCE GOALS  

 The Performance Goals for the
2008 Performance Shares are specified on the cover page of this Agreement and Exhibit A hereto, and for the 2009 Performance Shares and 2010 Performance Shares shall be specified in writing in such manner as the Committee may determine. 

 

	4.	DETERMINATION OF PERFORMANCE SHARES EARNED AND VESTED; FORFEITURES; SETTLEMENT 

 By March 15 of the year following each Performance Year, the Committee shall determine the extent to which Performance Shares have been earned on the basis of the Company’s actual performance in relation to
the established Performance Goals for the Performance Shares relating to that Performance 

  

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Year, provided, however, that the Committee may exercise its discretion (reserved under Plan Sections 7(a) and 7(b)(v)) to reduce the amount of Performance
Shares deemed earned in its assessment of performance in relation to Performance Goals, or in light of other considerations the Committee deems relevant. The Committee shall certify these results in writing in accordance with Plan Section 7(c),
subject to any limitation under Section 7 hereof (if you are Disabled during the Performance Year in excess of 26 weeks). Any Performance Shares that are not, based on the Committee’s determination, earned by performance in a Performance
Year (or deemed to be earned in connection with a termination of employment under Sections 6 and 8 below), including Performance Shares that had been potentially earnable by performance in excess of the actual performance levels achieved, shall be
canceled and forfeited. 
 Performance Shares are subject to vesting based on your service for periods which extend past the applicable
Performance Year. The stated vesting date is set forth on the cover page hereof. If, before the stated vesting date, there occurs an event immediately after which you are not an employee of the Company, its subsidiaries or an affiliate of the
Company, you will become vested in Performance Shares only to the extent provided in Section 6 or 8, and any Performance Shares that have not been earned and vested at or before such event and which cannot thereafter be earned and vested under
Sections 6 or 8 shall be canceled and forfeited. 
 In certain termination events as specified below and in connection with a long-term
Disability (as defined in Section 7), you will be entitled to vesting of a “Pro Rata Portion” of the Performance Shares earned or deemed earned hereunder. For purposes of this Agreement, in the case of a termination of employment, the
Pro Rata Portion is calculated as the number of Performance Shares relating to a given Performance Year multiplied by a fraction the numerator of which is the number of months you were employed from the commencement of that Performance Year through
the end of the month in which your termination of employment occurred (but not more than 12) and the denominator of which is 12; provided, however, that the number of months you were employed shall be reduced by the number of months during such
Performance Year in which you were Disabled in excess of 26 weeks since the commencement of the Disability. For purposes of this Agreement, in the case of a Disability extending longer than 26 weeks, the Pro Rata Portion is calculated as the number
of Performance Shares relating to a given Performance Year multiplied by a fraction the numerator of which is 12 minus the number of months you were Disabled in excess of 26 weeks since the commencement of the Disability, and the denominator of
which is 12. For purposes of calculations under this paragraph: (a) one or more days worked in a given month is counted as a full month of employment; and (b) one or more days on Disability in a given month in which the duration of
Disability has not yet exceeded 26 weeks is also counted as a full month of employment. 
 The number of Performance Shares earned or vested
shall be rounded to the nearest whole Performance Share, unless otherwise determined by the Company officers responsible for day-to-day administration of the Plan. 
 Performance Shares that become vested while you remain employed by the Company or a subsidiary or affiliate shall be settled promptly upon vesting by delivery of one Share for each Performance Share being settled,
unless validly deferred in accordance with deferral terms then authorized by the Committee (subject to Plan Section 11(k)). Performance Shares that become vested under Sections 6(a), 6(b), 6(c) or 8 shall be settled at the times specified
therein; provided, however, that settlement of Performance Shares under Section 6(a), (b) or (c) shall be subject to the applicable provisions of Plan Section 11(k). (Note: Section 11(k) could apply if settlement is
triggered by a Change in Control or a termination following a Change in Control). Until Shares are delivered to you in settlement of Performance Shares, you shall have none of the rights of a stockholder of the Company with respect to the Shares
issuable in settlement of the Performance Shares, including the right to vote the shares and receive dividends and other distributions. Shares of stock issuable in settlement of Performance Shares shall be delivered to you upon settlement in
certificated form or in such other manner as the Company may reasonably determine. 
  

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	5.	NONTRANSFERABILITY OF PERFORMANCE SHARES AND DESIGNATION OF BENEFICIARY 

 Performance Shares shall not be transferable other than by will or by the laws of descent and distribution, except that you may designate a beneficiary pursuant to the provisions hereof on a Designation of Beneficiary
form. 
 If you and/or your beneficiary shall attempt to assign your rights under this Agreement in violation of the provisions herein, the
Company’s obligation to settle Performance Shares or otherwise make payments shall terminate. 
 If no designated beneficiary is living
on the date on which shares are deliverable in settlement or other amount becomes payable to you, or if no beneficiary has been specified, such settlement or payment will be payable to the person or persons in the first of the following classes of
successive preference: 
  

	 	 (i)	Widow or widower, if then living, 

  

	 	(ii)	Surviving children, equally, 

  

	 	(iii)	Surviving parents, equally, 

  

	 	(iv)	Surviving brothers and sisters, equally, 

  

	 	 (v)	Executors or administrators 

 and the term “beneficiary” as used
in this Agreement shall include such person or persons. 
  

	6.	RETIREMENT AND OTHER TERMINATIONS (EXCLUDING DEATH) 

 (a) Retirement. In the event of your Retirement (as defined in the Plan) prior to settlement of Performance Shares and after you have satisfied the one-year employment requirement of Section 2, you will be deemed vested
(i) in any Performance Shares that relate to a Performance Year completed before your Retirement and which have been determined or thereafter are determined by the Committee to have been earned under Section 4, and (ii), with respect to
Performance Shares relating to a Performance Year in progress at the date of your Retirement, in a Pro Rata Portion of the Performance Shares you would have actually earned for that Performance Year if you had continued to be employed through the
date the Committee determines the earning of the Performance Shares for that Performance Year under Section 4 (for this purpose, if the grant of Performance Shares relating to the Performance Year in progress at the date of your Retirement has
not yet become effective, such grant shall be deemed to be effective immediately before the Retirement and shall have the same terms as applicable to participating employees who remain employed). Any Performance Shares earned and vested under this
Section 6(a) shall be settled at the earlier of (i) the date such Performance Shares would have vested if you had continued to be employed by the Company or a subsidiary or affiliate, (ii), in the event of a Change in Control, as to
previously earned Performance Shares promptly upon the Change in Control and, in the case of any unearned Performance Shares (subject to Section 1), promptly following the date at which the Committee determines the extent to which such
Performance Shares have been earned (in each case subject to Section 6(e) below and Section 11(k) of the Plan), or (iii), in the event of your death, in the year following the Performance Year in which your Retirement occurred (following
the Committee’s determination of the extent to which any remaining unearned Performance Shares have been earned) or, if your death occurred 

  

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after that year, as promptly as practicable following your death. Following your Retirement, any Performance Shares that have not been earned and vested and
which thereafter will not be deemed earned and vested under this Section 6(a) will be canceled and forfeited. 
 (b) Termination by
the Company Not For Cause. In the event of your Termination Not for Cause (as defined in Section 6(f)) by the Company and not during the Protected Period (as defined in Section 6(f)), prior to settlement of Performance Shares and after
you have satisfied the one-year employment requirement of Section 2, you will be deemed vested (i) in any Performance Shares that relate to a Performance Year completed before such termination and which have been determined or thereafter
are determined by the Committee to have been earned under Section 4, and (ii), with respect to Performance Shares relating to a Performance Year in progress at the date of such termination, in a Pro Rata Portion of the Performance Shares you
would have actually earned for that Performance Year if you had continued to be employed through the date the Committee determines the earning of the Performance Shares for that Performance Year under Section 4 (for this purpose, if the grant
of Performance Shares relating to the Performance Year in progress at the date of your Termination Not for Cause has not yet become effective, such grant shall be deemed to be effective immediately before your termination and shall have the same
terms as applicable to participating employees who remain employed). Any Performance Shares earned and vested under this Section 6(b) shall be settled at the earlier of (i) the date such Performance Shares would have vested if you had
continued to be employed by the Company or a subsidiary or affiliate or within the period extending to April 1 of that vesting year, (ii), in the event of a Change in Control meeting the conditions of Section 6(e)(ii), as to previously
earned Performance Shares promptly upon such Change in Control and, in the case of any unearned Performance Shares (subject to Section 1), promptly following the date at which the Committee determines the extent to which such Performance Shares
have been earned (in each case subject to Section 6(e) below and Section 11(k) of the Plan), or (iii), in the event of your death, in the year following the Performance Year in which your Termination Not for Cause occurred (following the
Committee’s determination of the extent to which any remaining unearned Performance Shares have been earned) or, if your death occurred after that year, as promptly as practicable following your death. Following such Termination Not for Cause,
any Performance Shares that have not been earned and vested and which thereafter will not be deemed earned and vested under this Section 6(b) will be canceled and forfeited. 
 (c) Qualifying Termination Following a Change in Control. In the event that you have a Qualifying Termination as defined in Plan Section 9(c)
during the Protected Period (as defined in Section 6(f) below) following a Change in Control (as defined in the Plan), you will be deemed vested (i) in any Performance Shares that relate to a Performance Year completed before such
termination and which have been determined or thereafter are determined by the Committee to have been earned under Section 4, and (ii), with respect to Performance Shares relating to a Performance Year in progress at the date of your Qualifying
Termination (subject to Section 1, but including Performance Shares otherwise not meeting the one-year requirement of Section 2), in a Pro Rata Portion of the target number of Performance Shares that could have been earned in the
Performance Year. All of your earned and vested Performance Shares shall be settled promptly (subject to Section 6(e) below and Section 11(k) of the Plan); provided, however, any additional forfeiture conditions in the nature of a
“clawback” contained in Section 10 of this Agreement shall continue to apply to any payment. Upon your Qualifying Termination, any Performance Shares that have not been deemed earned and vested under this Section 6(c) will be
canceled and forfeited. 
 (d) Other Terminations. If you cease to be an employee of the Company and its subsidiaries and affiliates
for any reason other than Retirement, Termination Not for Cause, a Qualifying Termination within the Protected Period following a Change in Control, or death, Performance Shares granted herein that have not become both earned and vested shall be
canceled and forfeited and you shall have no right to settlement of any portion of the Performance Shares. 
  

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 (e) Special Distribution Rules to Comply with Code Section 409A. The Performance Shares
constitutes a “deferral of compensation” under Section 409A of the Internal Revenue Code (the “Code”), based on Internal Revenue Service regulations and guidance in effect at the date of grant.1 As a result, the timing of
settlement of your Performance Shares will be subject to applicable limitations under Code Section 409A. Specifically, each tranche of Performance Shares will be subject to Section 11(k) of the Plan, including the following restrictions on
settlement: 
  

	 	(i)	Settlement of the Performance Shares under Section 6(c) upon a Qualifying Termination will be subject to the requirement that the termination constitute a “separation from
service” under Treas. Reg. § 1.409A-1(h), and subject to the six-month delay rule under Plan Section 11(k)(i)(E) if at the time of separation from service you are a “Specified Employee.” 

  

	 	(ii)	Settlement of the Performance Shares under Section 6(a) or 6(b) in the event of a Change in Control will occur only if an event relating to the Change in Control constitutes a
change in ownership or effective control of the Company or a change in the ownership of a substantial portion of the assets of the Company within the meaning of Treas. Reg. § 1.409A-3(i)(5). 

 (f) Definition of “Protected Period” and “Termination Not for Cause.” For purposes of this Section 6, the “Protected
Period” means a specific period of time following a Change in Control, such period to be the same as the applicable “protected period” specified by the Committee for change-in-control agreements, based on Committee’s policies in
effect at the time of grant of this Award, or such other specific period (not less than one year) specified by the Committee at the time of grant of this Award in the resolutions authorizing the grant of this Award. For purposes of this
Section 6, a “Termination Not for Cause” means a Company-initiated termination for reason other than willful misconduct, activity deemed detrimental to the interests of the Company, or disability, provided that you execute a general
release and, where required by the Company, a non-solicitation and/or non-compete agreement with the Company. 
  

	7.	DISABILITY OF PARTICIPANT 

 For purposes of this
Agreement, “Disability” or “Disabled” shall mean qualifying for and receiving payments under a disability plan of the Company or any subsidiary or affiliate either in the United States or in a jurisdiction outside of the United
States, and in jurisdictions outside of the United States shall also 

	1	This is because the risk of forfeiture would lapse upon a termination by the Company not for Cause, but the Performance Shares would not be settled until after the vesting date that
would have applied had there been no termination. It is not altogether clear whether the 2010 Performance Shares (the last tranche) would also be a 409A deferral for this reason, because those Performance Shares vest upon a termination not for cause
only if the termination is in 2010 or early 2011. The key here is whether the agreement requires settlement by March 15, 2011; if this tranche potentially could be settled after March 15, 2011, that would be outside of the short-term
deferral period if the Company had terminated the executive not for Cause in 2010. To avoid the complexity of having some tranches being non-409A deferrals and some being 409A deferrals, the provision on Termination Not for Cause allows settlement
as late as April 1, 2011, a date intentionally beyond the short-term deferral period so that all tranches are deemed 409A deferrals. Even apart from the Termination Not for Cause provision, under the agreement if a participant reached
retirement eligibility during any of the Performance Years, some or all of the tranches would have become 409A deferrals. It is much simpler for the award to be either entirely a 409A deferral arrangement or entirely not. 

 

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include qualifying for and receiving payments under a mandatory or universal disability plan or program managed or maintained by the government. If you
become Disabled, you will not be deemed to have terminated employment for the period during which, under the applicable Disability pay plan of the Company or a subsidiary or affiliate, you are deemed to be employed and continue to receive Disability
payments. Upon the cessation of payments under such Disability pay plan, (i) if you return to employment status with the Company or a subsidiary or affiliate, you will not be deemed to have terminated employment, and (ii), if you do not return
to such employment status, you will be deemed to have terminated employment at the date of cessation of such Disability payments, with such termination treated for purposes of the Performance Shares as a Retirement, death, or voluntary termination
based on your circumstances at the time of such termination. If you have been Disabled for a period in excess of 26 weeks in the aggregate during one or more Performance Years, for each affected Performance Year you will earn only a Pro Rata Portion
of the Performance Shares you otherwise would have earned in respect of such a Performance Year. 
  

	8.	DEATH OF PARTICIPANT 

 In the event of your death
while employed by the Company or a subsidiary and prior to settlement of Performance Shares but after you have satisfied the one-year employment requirement of Section 2, you will be deemed vested (i) in any Performance Shares that relate
to a Performance Year completed before your death and which have been determined or thereafter are determined by the Committee to have been earned under Section 4, and (ii), with respect to Performance Shares relating to a Performance Year in
progress at the date of your death, in a Pro Rata Portion of the Performance Shares you would have actually earned for that Performance Year if you had continued to be employed through the date the Committee determines the earning of the Performance
Shares for that Performance Year under Section 4. In this case, your beneficiary shall be entitled to settlement of any of your earned and vested Performance Shares referred to in clause (i) by the later of the end of the calendar year in
which your death occurred or 60 days after your death, and to your earned and vested Performance Shares referred to in clause (ii)in the year following your year of death as promptly as practicable following the determination of the number of
Performance Shares earned under clause (ii) above. In the case of your death, any Performance Shares that have not been earned and vested and thereafter will not be deemed earned and vested under this Section 8 will be canceled and
forfeited. 
  

	9.	TAXES 

 At such time as the Company or any
subsidiary or affiliate is required to withhold taxes with respect to the Performance Shares, or at an earlier date as determined by the Company, you shall make remittance to the Company or to your employer of an amount sufficient to cover such
taxes or make such other arrangement regarding payments of such taxes as are satisfactory to the Committee. The Company and its Subsidiaries and affiliates shall, to the extent permitted by law, have the right to deduct such amount from any payment
of any kind otherwise due to you, including by means of mandatory withholding of shares deliverable in settlement of your Performance Shares, to satisfy the mandatory tax withholding requirements. 
  

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	10.	FORFEITURE IN THE EVENT OF COMPETITION AND/OR SOLICITATION OR OTHER DETRIMENTAL ACTS 

 You acknowledge that your continued employment with the Company and its subsidiaries and affiliates and this grant of Performance Shares are sufficient
consideration for this Agreement, including, without limitation, the restrictions imposed upon you by Section 10. 
  

	 	a)	By accepting the Performance Shares granted hereby, you expressly agree and covenant that during the Restricted Period (as defined below), you shall not, without the prior consent
of the Company, directly or indirectly: 

  

	 	i)	own or have any financial interest in a Competitive Business (as defined below), except that nothing in this clause shall prevent you from owning one percent or less of the
outstanding securities of any entity whose securities are traded on a U.S. national securities exchange (including NASDAQ) or an equivalent foreign exchange; 

  

	 	ii)	be actively connected with a Competitive Business by managing, operating, controlling, being an employee or consultant (or accepting an offer to be an employee or consultant) or
otherwise advising or assisting a Competitive Business in such a way that such connection might result in an increase in value or worth of any product, technology or service, that competes with any product, technology or service upon which you
worked or about which you became familiar as a result of your employment with the Company. You may, however, be actively connected with a Competitive Business after your employment with the Company terminates for any reason, so long as your
connection to the business does not involve any product, technology or service, that competes with any product, technology or service upon which you worked or about which you became familiar as a result of your employment with the Company and the
Company is provided written assurances of this fact from the Competing Company prior to your beginning such connection; 

  

	 	iii)	take any action that might divert any opportunity from the Company or any of its affiliates, successors or assigns (the “Related Parties”) that is within the scope of the
present or future operations or business of any Related Parties; 

  

	 	iv)	employ, solicit for employment, advise or recommend to any other person that they employ or solicit for employment or form an association with any person who is employed by the
Company or who has been employed by the Company within one year of the date your employment with the Company ceased for any reason whatsoever; 

  

	 	v)	contact, call upon or solicit any customer of the Company, or attempt to divert or take away from the Company the business of any of its customers; 

  

	 	vi)	contact, call upon or solicit any prospective customer of the Company that you became aware of or were introduced to in the course of your duties for the Company, or otherwise
divert or take away from the Company the business of any prospective customer of the Company; or 

  

	 	vii)	engage in any activity that is harmful to the interests of the Company, including, without limitation, any conduct during the term of your employment that violates the
Company’s Standards of Business Conduct and Ethics, securities trading policy and other policies. 

  

	 	b)	Forfeiture. You agree and covenant that, if the Company determines that you have violated any provisions of Section 10(a) above during the Restricted Period, then:

  

	 	i)	any portion of the Performance Shares that have not been settled or paid to you as of the date of such determination shall be immediately canceled and forfeited;

  

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	 	ii)	you shall automatically forfeit any rights you may have with respect to the Performance Shares as of the date of such determination; 

  

	 	iii)	if any Performance Shares have become vested within the twelve-month period immediately preceding a violation of Section 10(a) above (or following the date of any such
violation), upon the Company’s demand, you shall immediately deliver to it a certificate or certificates for Shares equal to the number of Shares delivered to you in settlement of such vested Performance Shares if such delivery was made in
Shares or you shall pay cash equal to the value cash paid to you in settlement of such vested Performance Shares if such payment was made in cash; and 

  

	 	iv)	The foregoing remedies set forth in Section 10(b) shall not be the Company’s exclusive remedies. The Company reserves all other rights and remedies available to it at law
or in equity. 

  

	 	c)	Definitions. For purposes of this Section 10, the following definitions shall apply: 

  

	 	i)	The Company directly advertises and solicits business from customers wherever they may be found and its business is thus worldwide in scope. Therefore, “Competitive
Business” means any person or entity that engages in any business activity that competes with the Company’s business in any way, in any geographic area in which the Company engages in business, including, without limitation, any state
in the United States in which the Company sells or offers to sell its products from time to time. 

  

	 	ii)	“Restricted Period” means the period during which you are employed by the Company or its subsidiaries and affiliates and twelve months following the date that you
no longer are employed by the Company or any of its subsidiaries or affiliates for any reason whatsoever. 

  

	 	d)	Severability. You acknowledge and agree that the period, scope and geographic areas of restriction imposed upon you by the provisions of Section 10 are fair and
reasonable and are reasonably required for the protection of the Company. In the event that any part of this Agreement, including, without limitation, Section 10, is held to be unenforceable or invalid, the remaining parts of this Agreement and
Section 10 shall nevertheless continue to be valid and enforceable as though the invalid portions were not a part of this Agreement. If any one of the provisions in Section 10 is held to be excessively broad as to period, scope and
geographic areas, any such provision shall be construed by limiting it to the extent necessary to be enforceable under applicable law. 

  

	 	e)	Additional Remedies. You acknowledge that breach by you of this Agreement would cause irreparable harm to the Company and that in the event of such breach, the Company shall
have, in addition to monetary damages and other remedies at law, the right to an injunction, specific performance and other equitable relief to prevent violations of your obligations hereunder. 

  

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	11.	ADJUSTMENTS 

 The target number of Performance
Shares, the kind of securities deliverable in settlement of Performance Shares, and any performance measure based on per share results shall be appropriately adjusted in order to prevent dilution or enlargement of your rights with respect to the
Performance Shares upon the occurrence of an event referred to in Section 11(c) of the Plan. In furtherance of the foregoing, in the event of an equity restructuring, as defined in FAS 123R, which affects the Shares, you shall have a legal
right to an adjustment to your Performance Shares which shall preserve without enlarging the value of the Performance Shares, with the manner of such adjustment to be determined by the Committee in its discretion. However, no adjustments shall be
made hereunder for any ordinary cash dividends paid on Common Stock. Any Performance Shares or related rights which directly or indirectly result from and adjustment to a Performance Share hereunder shall be subject to the same risk of forfeiture
and other conditions as apply to the granted Performance Share and will be settled at the same time as the granted Performance Share. 
  

	12.	EFFECT ON OTHER BENEFITS 

 In no event shall the
value, at any time, of the Performance Shares or any other payment or right to payment under this Agreement be included as compensation or earnings for purposes of any other compensation, retirement, or benefit plan offered to employees of the
Company or its subsidiaries or affiliates unless otherwise specifically provided for in such plan. 
  

	13.	RIGHT TO CONTINUED EMPLOYMENT 

 Nothing in the Plan
or this Agreement shall confer on you any right to continue in the employ of the Company or any subsidiary or affiliate or any specific position or level of employment with the Company or any subsidiary or affiliate or affect in any way the right of
the Company or any subsidiary or affiliate to terminate your employment without prior notice at any time for any reason or no reason. 
  

	14.	ADMINISTRATION 

 The Committee shall have full
authority and discretion, subject only to the express terms of the Plan, to decide all matters relating to the administration and interpretation of the Plan and this Agreement, and all such Committee determinations shall be final, conclusive, and
binding upon the Company, any subsidiary or affiliate, you, and all interested parties. Any provision for distribution in settlement of your Performance Shares and other obligations hereunder shall be by means of bookkeeping entries on the books of
the Company and shall not create in you or any beneficiary any right to, or claim against any, specific assets of the Company, nor result in the creation of any trust or escrow account for you or any beneficiary. You and any of your beneficiaries
entitled to any settlement or other payment hereunder shall be a general creditor of the Company. 
  

	15.	AMENDMENT 

 This Agreement shall be subject to the
terms of the Plan, as amended from time to time, except that Performance Shares which are the subject of this Agreement may not be materially adversely affected by any amendment or termination of the Plan approved after the Award Date without your
written consent. 
  

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	16.	SEVERABILITY AND VALIDITY 

 The various provisions
of this Agreement are severable and any determination of invalidity or unenforceability of any one provision shall have no effect on the remaining provisions. 
  

	17.	GOVERNING LAW 

 This Agreement shall be governed by
the substantive laws (but not the choice of law rules) of the State of New York. 
  

	18.	SUCCESSORS 

 This Agreement shall be binding upon
and inure to the benefit of the successors, assigns, and heirs of the respective parties. 
  

	19.	DATA PRIVACY 

 By entering into this agreement, you
(i) authorize the Company, and any agent of the Company administering the Plan or providing Plan recordkeeping services, to disclose to the Company or any of its subsidiaries such information and data as the Company or any such subsidiary shall
request in order to facilitate the grant of Performance Shares and the administration of the Plan; (ii) waive any data privacy rights you may have with respect to such information; and (iii) authorize the Company to store and transmit such
information in electronic form. 
  

	20.	ENTIRE AGREEMENT AND NO ORAL MODIFICATION OR WAIVER 

 This Agreement contains the entire understanding of the parties. This Agreement shall not be modified or amended except in writing duly signed by the parties except that the Company may adopt a modification or amendment to the Agreement
that is not materially adverse to you in writing signed only by the Company. Any waiver of any right or failure to perform under this Agreement shall be in writing signed by the party granting the waiver and shall not be deemed a waiver of any
subsequent failure to perform. 
 I have read this agreement in its entirety. My signature below indicates my agreement to all the terms,
restrictions and conditions set forth in the agreement. 
  

			
	 For the Company

	
	 Bristol-Myers Squibb Company

		
	 By:
	 	  

	 Date:
	 	  

  

			
	 Participant

		
	 Sign Here:
	 	  

	 Date:
	 	  

  

 E-10-1 

 Exhibit A 
 BRISTOL-MYERS SQUIBB COMPANY 
 2007 Stock Award and Incentive Plan 
 2008 Strategic Plan Performance Share Award – Performance Goals 
 The number of 2008 Performance Shares earned by Participant shall be determined as of December 31, 2008 (the “Earning Date”), based on the Company’s 2008 Cash Flow Performance as defined below and
2008 Operating Margin Performance as defined below, determined based on the following grid 
  

										
	 	  	Threshold	  	Target	  	Maximum
	 2008 Cash Flow Performance
	  	$	             	  	$	             	  	$	             
	 2008 Operating Margin Performance
	  	$	             	  	$	             	  	$	             

 Participant shall earn     % of the target number of 2008 Performance Shares for
“Threshold Performance,” 100% of the target number of 2008 Performance Shares for “Target Performance,” and     % of the target number of 2008 Performance shares for “Maximum Performance.” For
this purpose, 2008 Cash Flow Performance and 2008 Operating Margin Performance are equally weighted, so level of earning of 2008 Performance Shares shall be determined as a percentage for each performance measure and the two percentages averaged.

 Determinations of the Committee regarding 2008 Cash Flow Performance and 2008 Operating Margin Performance, the resulting 2008 Performance Shares earned
and related matters will be final and binding on Participant. In making its determinations, the Committee may exercise its discretion (reserved under Plan Sections 7(a) and 7(b)(v)) to reduce the amount of Performance Shares deemed earned, in its
sole discretion. 
 Except for adjustments in the event of an extraordinary dividend or dividend payable in Shares, no dividends or dividend equivalents will
accrue with respect to Performance Shares in respect of any record date that precedes settlement of the Performance Shares. 
  

 E-10-1Letter Agreement

 Exhibit 10(b) 
 EXECUTION COPY 
 August 14, 2007 
 Mr. Klaus Kleinfeld 
 Dear Klaus: 
 Based on our meetings, as well as your meetings with other members of the Board of Directors (the “Board”) of Alcoa, Inc. (together with any successor thereto) (the “Company”), it is
my pleasure to extend an offer of employment with the Company pursuant to this letter agreement (“Agreement”), commencing on October 1, 2007 (the “Effective Date”), as its President and Chief Operating Officer,
reporting to the Chief Executive Officer. You will have all of the duties, responsibilities and authority commensurate with such position. From and after the Effective Date, you will continue to serve as a member of the Board. The Company
acknowledges and agrees that you may continue to serve as a member of the board of directors of two non-competitive corporate board of directors and may serve on charitable boards, in each case with the consent of the Board (which consent shall not
be unreasonably withheld), provided that such additional corporate and charitable board service does not interfere in any material way with your duties to the Company. Upon the retirement of the current Chief Executive Officer, you will be offered
the position of Chief Executive Officer and Chairman of the Board, reporting to the Board, with such employment continuing on the terms and conditions of this Agreement. The specifics of this employment offer are set forth below: 
  

			
	 1.      Base Salary
	  	 Effective the Effective Date, your annual base salary will be $1,400,000, subject to increase (but not decrease) from time to time in the discretion of the
Compensation and Benefits Committee (“Committee”) of the Board of Directors (as may be increased, the “Base Salary”), payable in accordance with the Company’s customary payroll practices. Your Base Salary will
be increased appropriately at such time as you assume the position of Chief Executive Officer and Chairman of the Board.

		
	 2.      Annual Bonus
	  	 Effective the Effective Date, your annual target bonus opportunity under the Company’s Incentive Compensation Plan will be equal to at least 120% of your
then-current Base Salary, and you can earn up to a maximum bonus equal to 240% of your then-current Base Salary. Your 2007 bonus will be based on the same performance objectives as the Company’s current Chief Executive Officer’s 2007
bonus, but will be prorated based on the fraction the numerator of which is the number of days you are employed by the Company during 2007 and the denominator of which is 365; provided, such bonus will not be prorated to the extent that you
demonstrate to the reasonable satisfaction of the Committee that you have forfeited your entitlement to a 2007 annual bonus payment from Siemens AG.

 Mr. Klaus Kleinfeld 
 August 14, 2007 
 Page 2 
  

			
	 3.      Initial Equity Awards
	  	 On the Effective Date, the Company will grant you the following time-vested and performance-based awards under Sections 3(a) and 3(b) and, if you so elect in the
alternative, Section 3(c) hereof pursuant to the Company’s Equity Choice Program under the 2004 Alcoa Stock Incentive Plan (“Plan”) and will grant you the following stock award under Section 3(d) hereof pursuant to the Plan:

		
		  	 (a)    A time-vested award (“Time-Vested Award”) having a grant-date value of $675,000; provided, if the
Effective Date is postponed to a date after October 1, 2007, as provided below, the value of such award shall be equal to the product of $675,000 multiplied by the fraction the numerator of which is the number of days from the Effective Date through
December 31, 2007 and the denominator of which is 92 (“Award Proration”). Unless you elect otherwise, as provided below, the Time-Vested Award will be granted to you in the form of time-vested stock options. The number of stock
options awarded will be determined based on the method and assumptions applied by the Company for the accounting of expense for stock option awards under FAS 123R in effect on the Effective Date (presently, the lattice method). Each time-vested
stock option will have an exercise price equal to the Fair Market Value (as defined under the Plan) of a share of common stock of the Company on the grant date, a six-year term, and will vest and become exercisable in three equal installments on
each of the first three anniversaries of the grant date, provided that you are continuously employed by the Company through such anniversary date for such installment to so vest. The standard terms and conditions for the Company’s stock option
awards shall otherwise apply (except that, during any period of time in which you are the Chief Executive Officer of the Company, any determination by the Chief Executive Officer authorized thereunder shall be made by the
Committee).

		
		  	 (b)    A performance-based award (“Performance-Based Award”) having a grant-date value of $675,000;
provided, such value shall be subject to Award Proration. Unless you elect otherwise, as provided below, the Performance-Based Award will be granted to you in the form of performance shares. The number of performance shares awarded will be equal to
the quotient of (i) $675,000 (or the value after any Award Proration) divided by (ii) the Fair Market Value of one share of Company common stock on the grant date. Performance shares will be earned and payable in accordance with the Company’s
standard terms and conditions applicable to its performance share awards granted in 2007. The number of performance shares so earned will fully vest and become unrestricted on the third anniversary of the grant date, provided that you are
continuously employed by the Company through such date.

 Mr. Klaus Kleinfeld 
 August 14, 2007 
 Page 3 
  

			
		  	 The standard terms and conditions for the Company’s performance share awards shall otherwise apply (except that, during any period of time in which you are
the Chief Executive Officer of the Company, any determination by the Chief Executive Officer authorized thereunder shall be made by the Committee).

		
		  	 (c)    On or prior to the Effective Date, you may elect to receive an award of time-vested restricted stock in lieu of
time-vested stock options under your Time-Vested Award, and you may elect to receive an award of performance stock options in lieu of performance shares under your Performance-Based Award, in accordance with the terms and procedures under the Equity
Choice Program in effect on the Effective Date. To the extent that you elect to receive restricted stock or performance stock options (or both), the Company’s standard terms and conditions applicable to such awards will govern (except that,
during any period of time in which you are the Chief Executive Officer of the Company, any determination by the Chief Executive Officer authorized thereunder shall be made by the Committee), including, without limitation:

		
		  	 (i)     any award of time-vested restricted stock will fully vest and become unrestricted on the third anniversary of
the grant date, provided that you are continuously employed by the Company through such date; and

		
		  	 (ii)    any award of performance stock options will be earned and payable in accordance with the Company’s standard
terms and conditions applicable to its performance stock option awards granted in 2007. Each earned performance stock option will have an exercise price equal to the Fair Market Value of a share of common stock of the Company on the grant date, a
six-year term, and will vest and become exercisable in three equal installments on each of the first three anniversaries of the grant date, provided that you are continuously employed by the Company through such anniversary date for such installment
to so vest.

		
		  	 (d)    On the Effective Date, the Company will grant you a fully vested award of Company common stock pursuant to the Plan
having a grant-date value of $1,000,000, or a monetary equivalent thereof, prior to any applicable tax withholding. The number of any such shares awarded, prior to any applicable tax withholding, will be equal to the quotient of (i) $1,000,000
divided by (ii) the Fair Market Value of one share of Company common stock on the grant date. The foregoing to the contrary notwithstanding, upon any voluntary termination (other than a Qualifying Termination, defined below) occurring prior to the
third anniversary of the Effective Date, you will repay such portion of this

 Mr. Klaus Kleinfeld 
 August 14, 2007 
 Page 4 
  

			
		  	 grant as equals the product of (A) the after-tax amount (determined after application of all refunds and credits to which you are entitled as a result of such
repayment) of the product of (x) the number of shares of common stock (or any such monetary equivalent) granted to you pursuant to this Section 3(d) multiplied by (y) the Fair Market Value of one share of Company common stock on the date of such
termination, multiplied by (B) the fraction the numerator of which is the number of whole months from the date of termination until such third anniversary and the denominator of which is 36. Any tax withholding applicable to such stock award
described in this Section 3(d) may, at your election, be satisfied by withholding from such award a number of shares with an aggregate Fair Market Value equal to the amount of tax required to be withheld by the Company in connection with such
award).

		
	 4.      Annual Equity Awards
	  	 Commencing with annual long-term incentive awards granted to senior executives during fiscal 2008, you will be eligible for further equity grants and other
long-term incentive awards, and with vesting and other terms and conditions, consistent with awards to other senior officers of the Company.

		
	 5.      Sign-On Bonus
	  	 On the Effective Date, you will receive a cash payment in the amount of $6,500,000 (subject to applicable tax and other required withholdings) as an inducement to
enter into this Agreement; provided, upon any voluntary termination (other than a Qualifying Termination, defined below) occurring prior to the third anniversary of the Effective Date, you will repay such portion of the cash payment as equals the
net after-tax amount of the cash payment (after application of all refunds and credits to which you are entitled as a result of such repayment) multiplied by the fraction the numerator of which is the number of whole months from the date of
termination until such third anniversary and the denominator of which is 36. The cash payment to you will not constitute compensation for purposes of determining the amount of benefits you may be entitled to receive under any of the Company’s
qualified and nonqualified retirement plans, qualified savings plan and nonqualified deferred compensation plans (including the SERP Benefit, below).

		
	 6.      Supplemental Pensions
	  	 Effective the Effective Date:

		
		  	 (a)    You will be eligible to participate in the Company’s tax-qualified defined contribution retirement plan and
the Company’s tax-qualified and nonqualified savings and deferred compensation plans, applicable to senior executives hired on or after the date you and the Company enter into this Agreement, in accordance with their terms in effect from time
to time, except as provided in Attachment A to this Agreement.

 Mr. Klaus Kleinfeld 
 August 14, 2007 
 Page 5 
  

			
		  	 (b)    You also will be eligible for a supplemental retirement benefit (“SERP Benefit”), as set forth on
Attachment A to this Agreement.

		
	 7.      Relocation
	  	 As of the Effective Date, you will be entitled to full relocation benefits in accordance with the Company’s policy governing relocation of its senior
executives. Additionally, you will receive a non-accountable cash payment in the amount of $1,200,000 (subject to applicable tax and other required withholdings) to assist you in the relocation of your family and you from your current residence to a
residence in the vicinity of the Company’s headquarters in New York City, New York. This amount will be fully taxable to you and will not be grossed-up for taxes. The cash payment to you will not constitute compensation for purposes of
determining the amount of benefits you may be entitled to receive under any of the Company’s qualified and nonqualified retirement plans, qualified savings plan and nonqualified deferred compensation plans (including the SERP Benefit, below).

		
	 8.      Benefits, Perquisites
	  	 Effective the Effective Date, you will be eligible to participate in all employee benefit plans, be entitled to such vacation benefits (but not less than four (4)
weeks per year, credited in accordance with applicable Company policy) and to receive all perquisites which the Company provides to its senior executives, in accordance with the most favorable terms thereof. For purposes of eligibility under any
Company retiree life insurance plan as may be in effect from time to time, you shall be deemed to have attained any minimum service requirement (and shall remain subject to attaining any required minimum age and continued employment and other terms
and conditions of eligibility) thereunder. As a member of the Executive Council, you will be subject to the Company’s Corporate Aircraft Policy, as in effect from time to time (and for which purpose the Company’s air transport security
policy shall be amended to cover you in the same manner as the Chief Executive Officer while you are serving as the Company’s President and Chief Operating Officer). The Company will provide you with an automobile and driver while in the United
States and abroad for your use for business and personal purposes, including commuting, subject to applicable tax reporting and withholding. The Company will provide you with an appropriate level of assistance consistent with existing Company
polices regarding your and your family’s visa, immigration and naturalization status in the United States. If due to circumstances beyond the Company’s and your control, you are unable to obtain all necessary visas and United States
immigration status required to commence your duties hereunder on a full-time basis in the United States by October 1, 2007 (“Residence Status”), the Effective Date will be postponed until the date you obtain Residence Status (and
for all purposes hereunder, the

 Mr. Klaus Kleinfeld 
 August 14, 2007 
 Page 6 
  

			
		  	 “Effective Date” will be such postponed date); provided, if you are unable to obtain Residence Status by January 1, 2008, your employment will not
commence (i.e., there will not be an Effective Date) and this Agreement will thereupon terminate without any further liability of the Company to you. The Company will pay your reasonable professional fees incurred to negotiate and prepare
this Agreement in an amount not to exceed $50,000. Effective the Effective Date, upon a termination of your employment for any reason other than for Cause (as defined below), and continuing until you attain age 65 (and for coverage for your spouse,
until she attains age 65), you and your spouse will be entitled to continued participation in the Company’s health plan (or plans), in which you were participating immediately prior to termination, at the same premium cost to you as the amount
from time to time charged for COBRA benefits to former employees of the Company.

		
	 9.      Severance
	  	
		
		  	 (a)    On the Effective Date, the Company and you will enter into the Company’s standard Executive Severance
Agreement in the form recently provided to you; provided, such agreement shall terminate upon the date that you are appointed as the Chief Executive Officer of the Company.

		
		  	 (b)    For the purposes of your Executive Severance Agreement, “Cause” shall have the following meaning, and not
the meaning in the standard form of Executive Severance Agreement: (i) any refusal by you to follow the lawful directives of the Board, or while you are Chief Operating Officer the lawful directives of the Chief Executive Officer, which are
consistent with the scope and nature of your duties and responsibilities; (ii) your conviction of, or plea of guilty or nolo contendere to, a felony or of any crime involving moral turpitude, fraud or embezzlement; (iii) any gross negligence or
willful misconduct in the conduct of your duties; (iv) any material breach of any one or more of the restrictive covenants provided at Section 12 hereof; or (v) any violation of any statutory or common law duty of loyalty to the Company or any of
its subsidiaries; provided, no act or omission shall be “willful” if conducted in good faith and with a reasonable belief that such conduct was in the best interests of the Company.

		
		  	 (c)    Further, any voluntary termination of your employment will be deemed an involuntary termination of your employment
“without Cause” under your Executive Severance Agreement (a “Qualifying Termination”) if such resignation occurs during the thirty (30) day period following the earliest to occur of (i) the date on which the current Chief
Executive Officer and Chairman retires and you are not immediately thereafter

 Mr. Klaus Kleinfeld 
 August 14, 2007 
 Page 7 
  

			
		  	 appointed to succeed him as Chief Executive Officer and Chairman of the Board or (ii) the date at any time, after you had begun to serve in such positions, in
which you are involuntarily terminated from either such position; provided, the appointment of a non-executive Chairman of the Board at any time will not constitute a basis for a Qualifying Termination provided that you, at such time as you then are
or thereafter become the Chief Executive Officer, report directly to the Board.

		
		  	 (d)     If you are entitled to receive severance benefits under the Executive Severance Agreement, you will not be
required to mitigate the amount of any payment provided for in the Executive Severance Agreement by seeking other employment or otherwise, and any amount received from subsequent employment will not offset your Salary Continuation payments (as
defined under the Executive Severance Plan).

		
	 10.    Change in Control
	  	 On the date that the Company and you enter into this Agreement, you will become a participant under the Company’s Change in Control Severance Plan applicable
to Tier II senior executives, or applicable to Tier I senior executives at such time as you become Chief Executive Officer, as in effect from time to time, subject to your commencement of employment on the Effective Date.

		
	 11.    Indemnification
	  	 The Company will indemnify you for your acts and omissions while serving as President and Chief Operating Officer, and thereafter if you are serving as Chief
Executive Officer, to the same extent as provided to senior officers under the Company’s charter, by-laws and applicable law. During your employment and service as a member of the Board, and thereafter for such period as you may be subject to
liability for any claims brought in connection with such employment or service under applicable statutes of limitations, laches and any other statutory, common law or equitable period during which a claim may be brought against you, the Company will
insure you under any policy of directors and officers liability insurance in effect from time to time to the same extent as the Company insures thereunder members of the Board and its senior officers.

		
	 12.    Restrictive Covenants
	  	 You will be subject to such restrictive covenants as are applicable to senior executives of the Company as of the Effective Date (including, without limitation, as
are provided under the Executive Severance Agreement provided under Section 9, above) and will enter into such other standard agreements as are required of other senior executives in accordance therewith.

 Mr. Klaus Kleinfeld 
 August 14, 2007 
 Page 8 
  

			
	 13.    Stock Ownership
	  	 You will be subject to the Company’s policy governing the accumulation and ownership of Company Shares, applicable at a level for your title and office
from time to time, during the period of your employment.

		
	 14.    Arbitration
	  	 Any controversy or claim arising out of or relating to this letter or the breach of this letter, or any agreement identified hereunder, that cannot be resolved
by you and the Company will be submitted to arbitration in metropolitan New York City, New York in accordance with the commercial dispute rules and procedures of the American Arbitration Association, which arbitration will be a binding and
conclusive settlement of any such claims or disputes; provided that the Company will be entitled to seek a temporary injunction in any court of competent jurisdiction for any breach by you in accordance with the terms of the restrictive covenants
applicable to you, which is the subject of an arbitration, for the duration of any arbitration proceeding. The Company will pay for the costs of arbitration. Each party will be responsible for his or its own attorneys fees and other litigation costs
incurred in connection with the arbitration.

		
	 15.    Miscellaneous
	  	 This Agreement and any dispute hereunder will be construed, interpreted and governed in accordance with the laws of the State of new York without reference to
rules relating to conflicts of law. Your employment with the Company will at all times be at-will. Subject to your rights to certain payments and benefits upon certain terminations of employment hereunder, nothing herein will confer upon you any
right to continue in the employment of the Company for any period of specific duration or interfere with or otherwise restrict in any way the rights of the Company or you to terminate your employment at any time and for any reason, with or without
Cause. Upon your termination of employment for any reason and as a condition to any payments and benefits to which you may become entitled under Section 9 (Severance) or 10 (Change in Control) hereunder, at the request of the Board you will
immediately resign from the Board, your position as an officer of the Company and all offices and directorships of all subsidiaries and affiliates of the Company. Any waiver of any breach of this Agreement shall not be construed to be a continuing
waiver or consent to any subsequent breach on the part of either you or the Company.

		
	 16.    Section 409A Compliance
	  	
		
		  	 (a)     Notwithstanding any provision to the contrary in this Agreement, if on the date of termination of your
employment you are a “specified employee” under Section 409A(a)(2)(B) of the Internal Revenue Code of 1986, as amended (“Code”), then with regard to any payment or the provision of any benefit that is required to be
delayed in compliance with

 Mr. Klaus Kleinfeld 
 August 14, 2007 
 Page 9 
  

			
		  	 Section 409A(a)(2)(B) of the Code such payment or benefit shall not be made or provided (subject to the last sentence hereof) prior to the earlier of (i) the
expiration of the six (6)-month period measured from the date of your “separation from service” (within the meaning of Section 409A(a)(2)(B) of the Code) or (ii) the date of your death (the “Delay Period”). Upon the
expiration of the Delay Period, all payments and benefits delayed pursuant to this subparagraph (whether they would have otherwise been payable in a single sum or in installments in the absence of such delay) shall be paid or reimbursed to you in a
lump sum, and any remaining payments and benefits due under this Agreement shall be paid or provided in accordance with the normal payment dates specified for them herein. Notwithstanding the foregoing, to the extent that the foregoing applies to
the provision of any ongoing welfare benefits to you that would not be required to be delayed if the premiums therefor were paid by you, you shall pay the full cost of premiums for such welfare benefits during the Delay Period and the Company shall
pay you an amount equal to the amount of such premiums paid by you during the Delay Period promptly after its conclusion. To the extent that your Executive Severance Agreement under Section 9, above, reflects the provisions of the final regulations
issued under Section 409A, the terms of that Executive Severance Agreement shall control over the terms of this Section 16(a).

		
		  	 (b)     To the extent applicable, it is intended that this Agreement comply with the provisions of Section 409A of
the Code, and this Agreement shall be construed and applied in a manner consistent with this intent. In the event that any payment or benefit under this Agreement is determined by the Company to be in the nature of deferred compensation, you and the
Company hereby agree to take such actions as may be mutually agreed between the parties to ensure that such payments comply with the applicable provisions of Section 409A of the Code and the Treasury regulations and other official guidance
promulgated thereunder. To the extent that any payment or benefit under this Agreement is modified by reason of this subsection (b), it shall be modified in a manner that preserves the economic costs and/or value thereof to the respective parties
(determined on a pre-tax basis and without interest for the time value of any delayed payment).

		
	 17.    Successors
	  	 Neither party hereto may assign any rights or delegate any duties under this Agreement without the prior written consent of the other party; provided, however,
that (a) this Agreement shall inure to the benefit of and be binding upon the successors and assigns of the Company upon any sale of all or substantially all of the Company’s assets, or upon any merger, consolidation or reorganization of the
Company with or into any

 Mr. Klaus Kleinfeld 
 August 14, 2007 
 Page 10 
  

			
		  	 other corporation, all as though such successors and assigns of the Company and their respective successors and assigns were the Company; and (b) this Agreement
shall inure to the benefit of and be binding upon your heirs, assigns or designees to the extent of any payments due to them hereunder.

		
	 18.    Entire Agreement
	  	 Except as otherwise contemplated herein, this Agreement contains the entire agreement between you and the Company with respect to the subject matter hereof. No
modification or termination of this Agreement may be made orally, but must be made in writing and signed by you and the Company.

 This offer of employment may be executed in counterparts, each of which will be deemed an
original, but all of which will constitute one and the same instrument. 
 If the foregoing terms and conditions are acceptable and agreed to
by you, please sign this Agreement where indicated below and return one executed copy to me. 
  

			
	Alcoa, Inc.
		
	By:	 	/s/ Alain J. P. Belda
	Name:	 	Alain J. P. Belda
	Title:	 	Chairman & CEO

  

	
	Accepted and Agreed:
	
	/s/ Klaus Kleinfeld
	Klaus Kleinfeld

 ATTACHMENT A 
 SERP Benefit 
 A-1. The amount of your SERP Benefit will be equal to the excess, if any, of
(a) your SERP Benefit Amount over (b) the amount of your Adjusted Siemens AG Pension Benefit (such benefit expressed as a single life annuity benefit payable annually that is the actuarial equivalent of the normal form of benefit provided
under such pension plan). For all purposes hereunder, actuarial equivalence shall be determined in accordance with the terms and assumptions provided under the Company’s defined benefit tax-qualified Retirement Plan (or if the Retirement Plan
shall be terminated, as set forth therein immediately prior to such termination). 
 A-2. For the purposes of this Agreement, your
“SERP Benefit Amount” will be a fully vested annual benefit payable as a single life annuity payable annually in an amount equal to the product of (a) 4.35%, multiplied by (b) the number of whole and fractional years of
pension service as an employee of the Company from and after the Effective Date, multiplied by (c) your average final compensation. “Pension service” and “average final compensation” shall have the meanings set forth in the
Company’s Supplemental Pension Plan for Senior Executives (“Supplemental Pension”) as in effect on the date of termination of your employment (or, if the Supplemental Pension shall be terminated by the Company, as set forth
therein immediately prior to such termination); provided, such terms shall have the meaning, respectively, set forth in the Supplemental Pension as in effect on the Effective Date if such meaning is more favorable to you at such time than on the
date of termination of your employment (or immediately prior to termination of the Supplemental Pension, as the case may be); provided further, in all events, your “average final compensation” shall be deemed to be not less than the sum of
your Base Salary in effect on the Effective Date plus a target-level annual bonus determined based on such initial Base Salary amount. For the avoidance of doubt, on the date hereof the Supplemental Pension provides that your “annual
compensation” (which forms the basis for your “average final compensation”) is based on your Base Salary and annual bonus amount and on no other component of compensation. While your Executive Severance Agreement is in effect (under
Section 9 hereof) and while you are a participant in the Company’s Change in Control Severance Plan (pursuant to Section 10 hereof), any additional service credit for pension accrual purposes to which you may become entitled under
such Executive Severance Agreement or such Change in Control Severance Plan (to the extent provided for therein as of the date of termination of your employment thereunder), as the case may be, shall apply to the determination of your SERP Benefit.

 A-3. The “Adjusted Siemens AG Pension Benefit” will be equal to the product of (a) 8.7%, multiplied by (b) the
number of whole and fractional years of your pension service as an employee of the Company from and after the Effective Date, multiplied by (c) your accrued age 60 pension benefit due you under your Siemens AG’s qualified and nonqualified
pension plans, expressed as a single life annuity benefit payable annually that is the actuarial equivalent of the normal form of benefit provided under each such plan; provided that, the product of (a) multiplied by (b) shall not exceed
100%. The United States dollar-equivalent of your Adjusted Siemens AG Pension Benefit will be determined based on the currency exchange rate for the Euro into United States dollars based on the 30 trading day average ending at the close of currency
trading in New York City, NY on the business day preceding the day that you commence your SERP Benefit, as reported in The Wall Street Journal (electronic edition). 

 A-4. For purposes hereof, if you retire and commence benefits hereunder on or after attaining age 55 and
prior to age attaining age 62, your SERP Benefit will be payable in a reduced amount, determined as follows: (i) determine your SERP Benefit Amount under Section A-1(a), above, as a single life annuity amount that would be payable commencing at
your age 62, (ii) determine your Adjusted Siemens AG Pension Benefit under Section A-1(b), above, as a single life annuity that would be payable at your age 60 and increased to the actuarial equivalent of such amount that would be payable as a
single life annuity at your age 62, and (iii) the difference of the amount determined under clause (i) of this Section A-5 minus the amount determined under clause (ii) of this Section A-5 will be reduced by such fractional amount as
applies under the Supplemental Pension for participants (who have fewer than 30 years of service) commencing benefits prior to age 62 (on the date hereof, the reduction method set forth in Section 1.1(M)(2)(B) and Section 1.1(M)(3) of the
Supplemental Pension). 
 A-5. Your SERP Benefit shall be payable commencing on the later of the date on which you reach age 60 and your
separation from service with the Company, or such later date as you elect in accordance with Section 409A of the Code and otherwise consistent with the Supplemental Pension, subject to the last two sentences of this paragraph A-5. Your SERP
Benefit shall be paid in monthly installments as a joint and 50% surviving spouse annuity that is the actuarial equivalent of a single life annuity as determined above, subject to your election in accordance with Section 409A to receive your
SERP Benefit in such different form as is permitted to participants under the Supplemental Pension, in accordance with the procedure for electing such benefit under the Supplemental Pension as in effect from time to time (or, if the Supplemental
Pension shall be terminated by the Company, such procedure as in effect immediately prior to such termination), Notwithstanding anything to the contrary in the foregoing, if on the date of termination of your employment you are a “specified
employee” under Section 409A(a)(2)(B) of the Code, then with regard to any payment or the provision of any benefit that is required to be delayed in compliance with Section 409A(a)(2)(B) of the Code your SERP Benefit shall not be
provided prior to the earlier of (i) the expiration of the six (6)-month period measured from the date of your “separation from service” (within the meaning of Section 409A(a)(2)(B) of the Code) or (ii) the date of your
death (the “Delay Period”). Any installments of your SERP Benefit that are delayed pursuant to the previous sentence shall be paid or reimbursed to you in a lump sum upon the expiration of the Delay Period, and any remaining
installments of your SERP shall be paid or provided in accordance with the normal payment dates provided for herein. 
 A-6. For purposes
hereof, if you die before commencing benefits hereunder, your then surviving spouse will be entitled to a preretirement survivor benefit equal to the excess, if any, of (i) the preretirement survivor benefit that is provided under the
Supplemental Pension (on the date hereof, as set forth in Section 1.1(M)(4) thereof) based on your SERP Benefit accrued through the date of your death and determined without regard for any eligibility or vesting requirement set forth under the
Company’s tax-qualified Retirement Plan over (ii) the amount of your Adjusted Siemens AG Pension Benefit (determined by substituting for such benefit the amount of such benefit then payable to your surviving spouse or other
beneficiary(s)). 
 A-7. For the avoidance of doubt, it is the intention of the Company and you that you will not be entitled to any
tax-qualified or nonqualified defined benefit retirement benefit from the Company, other than the SERP Benefit, that you hereby waive any such Company defined benefit retirement benefit to which you are or become entitled, that any such Company
defined 

 
benefit retirement benefit that cannot be waived will offset, on a dollar-for-dollar actuarially equivalent basis, the amount of your SERP Benefit, and that
all references herein to the Supplemental Pension are for purposes only of incorporating by reference herein certain defined terms and other provisions and procedures to determine the amount and terms of payment of your SERP Benefit. 
 A-8. Anything herein to the contrary notwithstanding, by entering into this Agreement, you hereby waive all entitlement to benefits under the Alcoa
Deferred Compensation Plan (and any successor to such plan) (“Deferred Compensation Plan”) other than (x) Participant Deferrals as presently described at Article III (“Participant Deferrals”) and
(y) Matching Company Credits under Article IV (“Matching Credits”) of the Deferred Compensation Plan; provided, if by the terms of the Deferred Compensation Plan or applicable law such waiver is determined not to be valid and
enforceable, the Company and yon acknowledge and agree that the actuarial equivalent amount of your entire benefit under the Deferred Compensation Plan, other than your Participant Deferrals and Matching Credits, will offset your SERP Benefit on a
dollar-for-dollar basis so as not to duplicate employer-provided benefits under your SERP Benefit and the Deferred Compensation Plan (and such actuarial equivalence shall be determined in accordance with the last sentence of Section A-1, above).

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