Document:

ck1844507-ex106_6.htm

Exhibit 10.6

PRIVATE PLACEMENT WARRANTS PURCHASE AGREEMENT

THIS PRIVATE PLACEMENT WARRANTS PURCHASE AGREEMENT, dated as of __, 2021 (as it may from time to time be amended and including all exhibits referenced herein, this “Agreement”), is entered into by and between Achari Ventures Holdings Corp. I, a Delaware corporation (the “Company”), and Achari Sponsor Holdings I LLC, a Delaware limited liability company (the “Purchaser”).

WHEREAS, the Company intends to consummate an initial public offering of the Company’s units (the “Public Offering”), each unit consisting of one share of the Company’s common stock, par value $0.0001 per share (each, a “Share”), and one redeemable warrant. Each whole warrant entitles the holder to purchase three quarters of one Share at an exercise price of $11.50 per Share. The Purchaser has agreed to purchase an aggregate of 7,133,333 warrants (or up to 7,833,333 warrants if the over-allotment option in connection with the Public Offering is exercised in full) (the “Private Placement Warrants”), each Private Placement Warrant entitling the holder to purchase one-half of one Share at an exercise price of $11.50 per Share.

NOW THEREFORE, in consideration of the mutual promises contained in this Agreement and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties to this Agreement hereby, intending legally to be bound, agree as follows:

AGREEMENT

Section 1.Authorization, Purchase and Sale; Terms of the Private Placement Warrants.

A. Authorization of the Private Placement Warrants. The Company has duly authorized the issuance and sale of the Private Placement Warrants to the Purchaser.

B. Purchase and Sale of the Private Placement Warrants. 

(i) As payment in full for the 7,133,333 Private Placement Warrants being purchased under this Agreement, Purchaser shall pay $6,895,000 (the “Purchase Price”), by wire transfer of immediately available funds or by such other method as may be reasonably acceptable to the Company, to the trust account (the “Trust Account”) at a financial institution to be chosen by the Company, maintained by Continental Stock Transfer & Trust Company, acting as trustee, at least one (1) business day prior to the date of effectiveness of the Registration Statement.  

(ii) In the event that over-allotment option is exercised in full or in part, Purchaser shall purchase up to an additional 700,000 Private Placement Warrants (the “Additional Private Placement Warrants”), in the same proportion as the amount of the over-allotment option that is exercised, and simultaneously with such purchase of Additional Private Placement Warrants, as payment in full for the Additional Placement Warrants being purchased hereunder, and at least one (1) business day prior to the closing of all or any portion of the over-allotment option, Purchaser shall pay $0.75 per Additional Private Placement Warrant, up to an aggregate amount of $337,500, by wire transfer of immediately available funds or by such other method as may be reasonably acceptable to the Company, to the Trust Account. 

(iii) The closing of the purchase and sale of the Private Placement Warrants shall take place simultaneously with the closing of the Public Offering (the “Initial Closing Date”). The closing of the purchase and sale of the Additional Private Placement Warrants, if applicable, shall take place simultaneously with the closing of all or any portion of the over-allotment option (“Over-allotment Closing Date”, together with the Initial Closing Date, the “Closing Dates” and each, a “Closing Date”). The closing of the purchase and sale of each of the Private Placement Warrants and the Additional Private Placement Warrants shall take place at the office of Reed Smith LLP, 599 Lexington Avenue, 22nd Floor, New York, New York 10022, or such other place as may be agreed upon by the parties hereto. 

C. Terms of the Private Placement Warrants.

(i) The Private Placement Warrants shall have their terms set forth in a Warrant Agreement to be entered into by the Company and a warrant agent, in connection with the Public Offering (a “Warrant Agreement”).

 

 

(ii) At or prior to the time of the Initial Closing Date, the Company and the Purchaser shall enter into a registration rights agreement (the “Registration Rights Agreement”) pursuant to which the Company will grant certain registration rights to the Purchaser relating to the Private Placement Warrants and the Shares underlying the Private Placement Warrants.

Section 2. Representations and Warranties of the Company. 

As a material inducement to the Purchaser to enter into this Agreement and purchase the Private Placement Warrants, the Company hereby represents and warrants to the Purchaser (which representations and warranties shall survive each Closing Date) that:

A. Organization and Corporate Power. The Company is a corporation duly organized, validly existing and in good standing under the laws of the State of Delaware and is qualified to do business in every jurisdiction in which the failure to so qualify would reasonably be expected to have a material adverse effect on the financial condition, operating results or assets of the Company. The Company possesses all requisite corporate power and authority necessary to carry out the transactions contemplated by this Agreement and the Warrant Agreement.

B. Authorization; No Breach.

(i) The execution, delivery and performance of this Agreement and the Private Placement Warrants have been duly authorized and approved by the Company as of each Closing Date. This Agreement constitutes a valid and binding obligation of the Company, enforceable in accordance with its terms. Upon issuance in accordance with, and payment pursuant to, the terms of the Warrant Agreement and this Agreement, the Private Placement Warrants will constitute valid and binding obligations of the Company, enforceable in accordance with their terms.

(ii) The execution and delivery by the Company of this Agreement and the Private Placement Warrants, the issuance and sale of the Private Placement Warrants, the issuance of the Shares upon exercise of the Private Placement Warrants and the fulfillment of, and compliance with, the respective terms hereof and thereof by the Company, do not and will not as of each Closing Date (a) conflict with or result in a breach of the terms, conditions or provisions of, (b) constitute a default under, (c) result in the creation of any lien, security interest, charge or encumbrance upon the Company’s capital stock or assets under, (d) result in a violation of, or (e) require any authorization, consent, approval, exemption, action, notice, declaration or filing, in each case, by or to any court or administrative or governmental body or agency pursuant to the certificate of incorporation or the bylaws of the Company (in effect on the date hereof or as may be amended prior to completion of the contemplated Public Offering), or any material law, statute, rule or regulation to which the Company is subject, or any agreement, order, judgment or decree to which the Company is subject, except for any filings required after the date hereof under federal or state securities laws.

C. Title to Securities. Upon issuance in accordance with, and payment pursuant to, the terms hereof and the Warrant Agreement, the Placement Warrants will be duly and validly issued and the Shares issuable upon exercise of the Private Placement Warrants will be duly and validly issued, fully paid and nonassessable. On the date of issuance of the Placement Warrants, the Shares issuable upon exercise of the Placement Warrants shall have been reserved for issuance. Upon issuance in accordance with, and payment pursuant to, the terms hereof and the Warrant Agreement, the Purchaser will have good title to the Private Placement Warrants and the Shares issuable upon exercise of such Private Placement Warrants, free and clear of all liens, claims and encumbrances of any kind, other than (i) transfer restrictions hereunder and under the other agreements contemplated hereby, (ii) transfer restrictions under federal and state securities laws, and (iii) liens, claims or encumbrances imposed due to the actions of the Purchaser.

D. Valid Issuance. The total number of shares of all classes of capital stock which the Company has authority to issue is 100,000,000 shares of common stock and 1,000,000 shares of the Company’s preferred stock, par value $0.0001, per share (the “Preferred Stock”). As of the date hereof, the Company has issued and outstanding 2,875,000 shares of Common Stock (of which up to 375,000 shares are subject to forfeiture as described in the Registration Statement) and no shares of Preferred Stock. All of the issued shares of capital stock of the Company have been duly authorized, validly issued, and are fully paid and non-assessable. 

E. Governmental Consents. No permit, consent, approval or authorization of, or declaration to or filing with, any governmental authority is required in connection with the execution, delivery and performance by the Company of this Agreement or the consummation by the Company of any other transactions contemplated hereby.

 

 

Section 3. Representations and Warranties of the Purchaser. 

As a material inducement to the Company to enter into this Agreement and issue and sell the Private Placement Warrants to the Purchaser, the Purchaser hereby represents and warrants to the Company (which representations and warranties shall survive each Closing Date) that:

A. Organization and Requisite Authority. The Purchaser possesses all requisite power and authority necessary to carry out the transactions contemplated by this Agreement.

B. Authorization; No Breach.

(i) This Agreement constitutes a valid and binding obligation of the Purchaser, enforceable in accordance with its terms, subject to bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium and other laws of general applicability relating to or affecting creditors’ rights and to general equitable principles (whether considered in a proceeding in equity or law).

(ii) The execution and delivery by the Purchaser of this Agreement and the fulfillment of and compliance with the terms hereof by the Purchaser does not and shall not as of each Closing Date conflict with or result in a breach by the Purchaser of the terms, conditions or provisions of any agreement, instrument, order, judgment or decree to which the Purchaser is subject that would materially impact its ability to perform its obligations hereunder.

C. Investment Representations.

(i) The Purchaser is acquiring the Private Placement Warrants and, upon exercise of the Private Placement Warrants, the Shares issuable upon such exercise (collectively, the “Securities”), for the Purchaser’s own account, for investment purposes only and not with a view towards, or for resale in connection with, any public sale or distribution thereof.

(ii) The Purchaser is an “accredited investor” as such term is defined in Rule 501(a)(3) of Regulation D of the Securities Act of 1933, as amended (the “Securities Act”).

(iii) The Purchaser understands that the Securities are being offered and will be sold to it in reliance on specific exemptions from the registration requirements of the United States federal and state securities laws and that the Company is relying upon the truth and accuracy of, and the Purchaser’s compliance with, the representations and warranties of the Purchaser set forth herein in order to determine the availability of such exemptions and the eligibility of the Purchaser to acquire such Securities.

(iv) The Purchaser did not enter into this Agreement as a result of any general solicitation or general advertising within the meaning of Rule 502(c) under the Securities Act.

(v) The Purchaser has been furnished with all materials relating to the business, finances and operations of the Company and materials relating to the offer and sale of the Securities which have been requested by the Purchaser. The Purchaser has been afforded the opportunity to ask questions of the executive officers and directors of the Company. The Purchaser understands that its investment in the Securities involves a high degree of risk and it has sought such accounting, legal and tax advice as it has considered necessary to make an informed investment decision with respect to the acquisition of the Securities.

(vi) The Purchaser understands that no United States federal or state agency or any other government or governmental agency has passed on or made any recommendation or endorsement of the Securities or the fairness or suitability of the investment in the Securities by the Purchaser nor have such authorities passed upon or endorsed the merits of the offering of the Securities. 

(vii) The Purchaser understands that: (a) the Securities have not been and are not being registered under the Securities Act or any state securities laws, and may not be offered for sale, sold, assigned or transferred unless (1) subsequently registered thereunder or (2) sold in reliance on an exemption therefrom; and (b) except as specifically set forth in the Registration Rights Agreement, neither the Company nor any other person is under any obligation to register the Securities under the Securities Act or any state securities laws or to comply with the terms and conditions of any exemption thereunder. While such Purchaser understands that Rule 144 under the Securities Act is not available for the resale of securities initially issued by shell companies (other than business combination related shell companies) or issuers that have been at any time previously a shell company, such Purchaser understands that 

 

 

Rule 144 includes an exception to this prohibition if the following conditions are met: (i) the issuer of the securities that was formerly a shell company has ceased to be a shell company; (ii) the issuer of the securities is subject to the reporting requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”); (iii) the issuer of the securities has filed all Exchange Act reports and material required to be filed, as applicable, during the preceding 12 months (or such shorter period that the issuer was required to file such reports and materials), other than Form 8-K reports; and (iv) at least one year has elapsed from the time that the issuer filed current Form 10 type information with the SEC reflecting its status as an entity that is not a shell company.

(viii) The Purchaser has such knowledge and experience in financial and business matters, knowledge of the high degree of risk associated with investments in the securities of companies in the development stage such as the Company, is capable of evaluating the merits and risks of an investment in the Securities and is able to bear the economic risk of an investment in the Securities in the amount contemplated hereunder for an indefinite period of time. The Purchaser has adequate means of providing for its current financial needs and contingencies and will have no current or anticipated future needs for liquidity which would be jeopardized by the investment in the Securities. The Purchaser can afford a complete loss of its investment in the Securities.

Section 4. Conditions of the Purchaser’s Obligations. 

The obligations of the Purchaser to purchase and pay for the Private Placement Warrants are subject to the fulfillment, on or before each Closing Date, of each of the following conditions:

A. Representations and Warranties. The representations and warranties of the Company contained in Section 2 shall be true and correct at and as of such Closing Date as though then made.

B. Performance. The Company shall have performed and complied with all agreements, obligations and conditions contained in this Agreement that are required to be performed or complied with by it on or before such Closing Date.

C. No Injunction. No litigation, statute, rule, regulation, executive order, decree, ruling or injunction shall have been enacted, entered, promulgated or endorsed by or in any court or governmental authority of competent jurisdiction or any self-regulatory organization having authority over the matters contemplated hereby, which prohibits the consummation of any of the transactions contemplated by this Agreement or the Warrant Agreement.

D. Warrant Agreement and Registration Rights Agreement. The Company shall have entered into a Warrant Agreement with a warrant agent and the Registration Rights Agreement, each on terms satisfactory to the Purchaser.

E. Corporate Consents. The Company shall have obtained the consent of its Board of Directors authorizing the execution, delivery and performance of this Agreement and the Warrant Agreement and the issuance and sale of the Private Placement Warrants hereunder.

Section 5. Conditions of the Company’s Obligations. 

The obligations of the Company to the Purchaser under this Agreement are subject to the fulfillment, on or before each Closing Date, of each of the following conditions:

A. Representations and Warranties. The representations and warranties of the Purchaser contained in Section 3 shall be true and correct at and as of such Closing Date as though then made.

B. Performance. The Purchaser shall have performed and complied with all agreements, obligations and conditions contained in this Agreement that are required to be performed or complied with by the Purchaser on or before such Closing Date.

C. Corporate Consents. The Company shall have obtained the consent of its Board of Directors authorizing the execution, delivery and performance of this Agreement and the Warrant Agreement and the issuance and sale of the Private Placement Warrants hereunder.

 

 

D. No Injunction. No litigation, statute, rule, regulation, executive order, decree, ruling or injunction shall have been enacted, entered, promulgated or endorsed by or in any court or governmental authority of competent jurisdiction or any self-regulatory organization having authority over the matters contemplated hereby, which prohibits the consummation of any of the transactions contemplated by this Agreement or the Warrant Agreement.

E. Warrant Agreement. The Company shall have entered into a Warrant Agreement with a warrant agent on terms satisfactory to the Company.

Section 6. Termination. 

This Agreement may be terminated at any time after December 31, 2021 upon the election by either the Company or the Purchaser upon written notice to the other party if the closing of the Public Offering does not occur prior to such date.

Section 7. Survival of Representations and Warranties. 

All of the representations and warranties contained herein shall survive each Closing Date.

Section 8. Definitions. 

Terms used but not otherwise defined in this Agreement shall have the meaning assigned to such terms in the registration statement on Form S-1 the Company has filed with the Securities and Exchange Commission under the Securities Act in connection with the Public Offering.

Section 9. Miscellaneous.

A. Successors and Assigns. Except as otherwise expressly provided herein, all covenants and agreements contained in this Agreement by or on behalf of any of the parties hereto shall bind and inure to the benefit of the respective successors of the parties hereto whether so expressed or not. Notwithstanding the foregoing or anything to the contrary herein, the parties may not assign this Agreement without the prior written consent of the other party hereto, other than assignments by the Purchaser to affiliates thereof (including, without limitation, one or more of its members).

B. Severability. Whenever possible, each provision of this Agreement shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Agreement is held to be prohibited by or invalid under applicable law, such provision shall be ineffective only to the extent of such prohibition or invalidity, without invalidating the remainder of this Agreement.

C. Counterparts. This Agreement may be executed simultaneously in two or more counterparts, none of which needs to contain the signatures of more than one party, but all such counterparts taken together shall constitute one and the same agreement. In the event that any signature is delivered by facsimile transmission or by e-mail delivery of a “pdf” format data file, such signature shall create a valid and binding obligation of the party executing (or on whose behalf such signature is executed) with the same force and effect as if such facsimile or “.pdf” signature page were an original thereof.

D. Descriptive Headings; Interpretation. The descriptive headings of this Agreement are inserted for convenience only and do not constitute a substantive part of this Agreement. The use of the word “including” in this Agreement shall be by way of example rather than by limitation.

E. Governing Law. This Agreement shall be deemed to be a contract made under the laws of the State of New York and for all purposes shall be construed in accordance with the internal laws of the State of New York without regard to the conflicts of laws principles thereof.

F. Amendments. This Agreement may not be amended, modified or waived as to any particular provision, except by a written instrument executed by all parties hereto.

 

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement to be effective as of the date first set forth above.

 

	
 
	
COMPANY:

	
 
	
 

	
 
	
ACHARI VENTURES HOLDINGS CORP. I,

a Delaware corporation 

	
 
	
 
	
 

	
 
	
By:
	
 

	
 
	
Name: 
	
Vikas Desai

	
 
	
Title:
	
Chief Executive Officer

	
 
	
 
	
 

	
 
	
PURCHASER:

	
 
	
 

	
 
	
ACHARI SPONSOR HOLDINGS I LLC, 

a Delaware limited liability company

	
 
	
 
	
 

	
 
	
By:
	
 

	
 
	
Name:
	
Vikas Desai

	
 
	
Title:
	
Managing Member

[Signature Page to Private Placement Warrants Purchase Agreement]EXHIBIT 10.1

 

HOWMET AEROSPACE INC.

 

EXECUTIVE SEVERANCE PLAN

 

The Company hereby amends and restates, effective as of September 17,
2021, the Howmet Aerospace Inc. Executive Severance Plan (this “Plan”), which was originally adopted on February 27,
2017, and subsequently amended and restated on May 14, 2019 and September 30, 2020. All capitalized terms used and not otherwise
defined herein are defined in Section 1 hereof.

 

SECTION 1. DEFINITIONS. As hereinafter used:

 

 1.1                  “Affiliate” shall have the meaning set forth in Rule 12b-2 under Section 12 of the Exchange Act.

 

1.2                  “Applicable
Period” shall mean (a) in the case of a Tier I Employee, the eighteen (18)-month period immediately following such Tier
I Employee’s Severance Date, (b) in the case of a Tier II Employee, the twenty four (24)-month period immediately following
such Tier II Employee's Severance Date, and (c) in the case of a Tier III Employee, the twelve (12)-month period immediately following
such Tier III Employee’s Severance Date.

 

1.3                  “Board”
means the Board of Directors of the Company.

 

1.4                  “Cause”
means: (a) the willful and continued failure by the Eligible Employee to substantially perform the Eligible Employee’s duties
with the Employer that has not been cured within thirty (30) days after a written demand for substantial performance is delivered
to the Eligible Employee by the Board, which demand specifically identifies the manner in which the Board believes that the Eligible Employee
has not substantially performed the Eligible Employee’s duties, or (b) the willful engaging by the Eligible Employee in conduct
that is demonstrably and materially injurious to the Company, monetarily or otherwise.

 

1.5                  “Code”
means the Internal Revenue Code of 1986, as it may be amended from time to time.

 

1.6                  “Committee”
means the Compensation and Benefits Committee of the Board.

 

1.7                  “Company”
means Howmet Aerospace Inc. or any successors thereto.

 

1.8                  “DB
Pension Plan” means any tax-qualified, supplemental or excess defined benefit pension plan maintained by the Company or any
of its Affiliates and any other defined benefit plan or agreement entered into between the Eligible Employee and the Company or any of
its Affiliates which is designed to provide the Eligible Employee with supplemental defined benefit retirement benefits.

 

1.9
                  “DC Pension Plan” means any tax-qualified,
supplemental or excess defined contribution plan maintained by the Company or any of its Affiliates and any other defined
contribution plan or agreement entered into between the Eligible Employee and the Company or any of its Affiliates which is designed
to provide the Eligible Employee with supplemental defined contribution retirement benefits.

 

1.10                “Delayed
Payment Date” shall have the meaning set forth in Section 2.1(e).

 

1.11                “Eligible
Employee” means any Tier I, Tier II or Tier III Employee; provided that, any Tier I, Tier II or Tier III Employee
who is party to an individual agreement with the Company or any of its Affiliates that provides for severance benefits upon an involuntary
termination shall not be considered an “Eligible Employee” while such agreement is in effect. An Eligible Employee becomes
a “Severed Employee” once he or she incurs a Severance Event.

 

1.12                “Employer”
means the Company or any of its Subsidiaries that employs the applicable Eligible Employee.

 

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1.13               “Exchange
Act” shall mean the Securities Exchange Act of 1934, as amended from time to time.

 

1.14               “Notice
of Termination” shall have the meaning set forth in Section 3.5.

 

1.15               “Plan”
shall have the meaning given in the preamble hereto.

 

1.16               “Release
Date” shall have the meaning set forth in Section 2.1.

 

1.17               A
 “Separation from Service” means a “separation from service” within the meaning of Section 409A of
the Code and Treasury Regulation Section 1.409A-1(h).

 

1.18              “Severance
Event” means an Eligible Employee’s Separation from Service by the Employer other than for Cause. An Eligible Employee
will not be considered to have incurred a Severance Event if his or her employment is discontinued by reason of the Eligible Employee’s
death or a physical or mental condition causing such Eligible Employee’s inability to substantially perform his or her duties with
the Employer, including, without limitation, such condition entitling him or her to benefits under any sick pay or disability income policy
or program of the Company or any of its Affiliates.

 

1.19            “Severance
Date” means the date on which an Eligible Employee’s Severance Event takes place.

 

1.20            “Severance
Pay” shall have the meaning set forth in Section 2.1(a).

 

1.21            “Severed
Employee” shall have the meaning set forth in Section 1.11.

 

1.22            “Subsidiary”
shall have the meaning set forth in Rule 12b-2 under Section 12 of the Exchange Act.

 

1.23            “Tier
I Employee” means each employee of the Company or any Subsidiary thereof who is designated by the Committee as eligible to participate
in this Plan as a Tier I Employee.

 

1.24            “Tier
II Employee” means (a) each Executive Vice President of the Company as of May 14, 2019 who has not waived in writing
the right to participate in this Plan, and (b) each other employee of the Company or any Subsidiary thereof who is designated by
the Committee as eligible to participate in this Plan as a Tier II Employee.

 

1.25            “Tier
III Employee” means (a) each Board-elected officer as of May 14, 2019 who is not a Tier I Employee or Tier II Employee
and who has not waived in writing the right to participate in this Plan, and (b) each other employee of the Company or any Subsidiary
thereof who is designated by the Committee as eligible to participate in this Plan as a Tier III Employee.

 

SECTION 2. BENEFITS.

 

2.1.                Severance
Payments and Benefits. Each Severed Employee shall be entitled, subject to Section 2.2, and subject to the Severed Employee executing
a general release of claims in favor of the Company and its Affiliates in a form satisfactory to the Company and such release becoming
effective and irrevocable no later than the date that is sixty (60) days following the Severance Date (the “Release Date”),
to receive the following payments and benefits from the Company. If the Severed Employee does not satisfy such release requirement, then
the Severed Employee shall not be entitled to receive the payments described in Sections 2.1(a), (c) and (d) and the Company
shall have no obligation to provide the benefits described in Section 2.1(b) after the end of the month in which the Release
Date occurs.

 

(a)    Severance
Pay. A lump sum cash amount (the “Severance Pay”) equal to (i) in the case of a Tier I Employee, one-and-a-half
(1.5) times the sum of the Severed Employee’s (A) annual base salary as of the Severance Date, and (B) target annual
cash incentive compensation with respect to the fiscal year of the Company in which the Severance Date occurs, (ii) in the
case of a Tier II Employee, one (1) times the sum of the Severed Employee’s (A) annual base salary as of the Severance
Date, and (B) target annual cash incentive compensation with respect to the fiscal year of the Company in which the Severance Date
occurs, and (iii) in the case of a Tier III Employee, the Severed Employee’s annual base salary as of the Severance Date; provided that,
if the amount of the cash severance pay for such Severed Employee calculated under the Howmet Aerospace Involuntary Separation Pay Plan,
as in effect from time to time, or any successor plan, is greater than the amount calculated in accordance with this Section 2.1(a),
then such Severed Employee’s Severance Pay shall equal such greater amount.

 

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(b)    Benefits.
During the Applicable Period, the Company shall arrange to provide the Severed Employee and anyone entitled to claim through the Severed
Employee life, accident and health (including medical, behavioral, prescription drug, dental and vision) benefits substantially
similar to those provided to the Severed Employee and anyone entitled to claim through the Severed Employee immediately prior to the Severed
Employee’s Severance Date, at no greater after-tax cost to the Severed Employee than the after-tax cost to the Severed Employee
immediately prior to such Severance Date.

 

(c)    Defined
Contribution Pension Plans. For a Severed Employee who is eligible to receive the Employer Retirement Income Contributions (ERIC)
under any DC Pension Plan, in addition to the retirement benefits to which the Severed Employee is entitled under each DC Pension Plan
or any successor plan thereto, the Company shall pay the Severed Employee a lump sum cash amount equal to the product of (i) the
ERIC contribution percentage in effect for the Severed Employee on the Severance Date, multiplied by (ii) the Severed Employee’s
annual base salary plus target annual cash incentive compensation as determined in Section 2.1(a)), multiplied by (iii) the
number of years during the Applicable Period.

 

(d)    Defined
Benefit Pension Plans. For a Severed Employee who participates in any DB Pension Plan, in addition to the retirement benefits to which
the Severed Employee is entitled under each DB Pension Plan, the Company shall pay the Severed Employee a lump sum cash amount equal to
the excess of (i) the actuarial equivalent of the aggregate retirement pension (taking into account any early retirement subsidies
associated therewith and determined in accordance with the normal form of payment under each DB Pension Plan, commencing at the date on
or after the last day of the Applicable Period as of which the actuarial equivalent of such form of payment is greatest) which the Severed
Employee would have accrued and vested in under the terms of all DB Pension Plans determined for all purposes of determining pension benefits
and eligibility for such benefits, including all applicable retirement subsidies, as if the Severed Employee had accumulated (after the
Severed Employee’s Severance Date) the number of additional months of age and service credit thereunder that the Severed Employee
would have accumulated had the Severed Employee remained employed by the Company during the Applicable Period, over (ii) the actuarial
equivalent of the aggregate retirement pension (taking into account any early retirement subsidies associated therewith and determined
in accordance with the normal form of payment under each DB Pension Plan, commencing at the date on or after the Severed Employee’s
Severance Date as of which the actuarial equivalent of such form of payment is greatest) that the Severed Employee had accrued and vested
in pursuant to the provisions of the DB Pension Plans as of the Severed Employee’s Severance Date.

 

For purposes of this Section 2.1(d), “actuarial equivalent”
shall be determined based upon the Severed Employee’s age as of the Severed Employee’s Severance Date using the same assumptions
utilized under the Howmet Aerospace Retirement Plan I, Section 8.3(d)(ii) or the successor to such provision (without regard
to applicable dollar limitations ($5,000 as of February 27, 2017)) immediately prior to the Severed Employee’s Severance Date.

 

(e)    The
amounts described in Sections 2.1(a), (c) and (d) shall be paid to the Eligible Employee in a cash lump sum on the Release Date; provided that,
if the Severed Employee is, as of the Severance Date, a “specified employee” within the meaning of Section 409A of the
Code as determined in accordance with the methodology duly adopted by the Company as in effect on the Severance Date, then, to the extent
necessary to avoid the imposition of the excise tax under Section 409A of the Code, such lump sum amounts shall instead be paid on
the first business day that is at least six (6) months after the Severance Date (or if sooner, upon the death of the Severed Employee)
(the “Delayed Payment Date”), with interest at the applicable federal rate provided for in Section 7872(f)(2)(A) of
the Code, from the first business day after the Severance Date through the Delayed Payment Date.

 

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2.2.               Withholding.
The Company shall be entitled to withhold from amounts to be paid to any Eligible Employee hereunder any federal, state or local withholding
or other taxes or charges (or foreign equivalents of such taxes or charges) which it is from time to time required to withhold under applicable
law or regulation.

 

2.3.               Status
of Plan Payments. No payments or benefits pursuant to this Plan shall constitute “compensation” (or similar term) under
any employee benefit plan sponsored or maintained by the Company or any of its Affiliates, including any DB Pension Plan or DC Pension
Plan.

 

2.4.                Mitigation;
Setoff. A Severed Employee is not required to seek other employment or attempt in any way to reduce any amounts payable to the Severed
Employee under the Plan. Further, no payment or benefit provided for in this Plan shall be reduced by any compensation earned by the Severed
Employee as a result of employment by another employer, by retirement benefits, by offset against any amount claimed to be owed by the
Severed Employee to the Company or its Affiliates, or otherwise.

 

SECTION 3 .PLAN ADMINISTRATION; CLAIMS PROCEDURES.

 

3.1            The
Committee shall administer the Plan and:

 

(a)            the
Committee may interpret and construe the terms of the Plan, prescribe, amend and rescind rules and regulations under the Plan and
make all other determinations necessary or advisable for the administration of the Plan, subject to all of the provisions of the Plan;

 

(b)           any
determination by the Committee shall be final and binding with respect to the subject matter thereof on all Eligible Employees and all
other persons;

 

(c)            the
Committee may delegate any of its duties hereunder to such person or persons from time to time as it may designate.

 

3.2            The
Committee is empowered, on behalf of the Company, to engage accountants, legal counsel and such other personnel as it deems necessary
or advisable to assist it in the performance of its duties under the Plan. The functions of any such persons engaged by the Committee
shall be limited to the specified services and duties for which they are engaged, and such persons shall have no other duties, obligations
or responsibilities under the Plan. Such persons shall exercise no discretionary authority or discretionary control respecting the management
of the Plan. All reasonable expenses thereof shall be borne by the Company.

 

3.3            Claims
Procedure.

 

(a)    In
the event of a claim by an Eligible Employee, such Eligible Employee shall present the reason for his or her claim in writing to the Committee.
The Committee shall, within ninety (90) days after receipt of such written claim (unless special circumstances require an extension
of up to ninety (90) days, in which case written notice of the extension shall be furnished to the Eligible Employee prior to the end
of the initial ninety (90)-day period, indicating the special circumstances requiring an extension and the date by which the Committee
expects to render its decision), send a written notification to the Eligible Employee as to its disposition. In the event the claim is
wholly or partially denied, such written notification shall (i) state the specific reason or reasons for the denial, (ii) make
specific reference to the relevant Plan provisions on which the denial is based, (iii) provide a description of any additional material
or information necessary for the Eligible Employee to perfect the claim and an explanation of why such material or information is necessary,
and (iv) describe the Plan’s review procedures and the time limits applicable to such procedures, including the Eligible Employee’s
right to bring a civil action under Section 502(a) of ERISA following a full or partial denial of the claim on review.

 

    4

     

    

 

(b)    In
the event that an Eligible Employee wishes to appeal the denial of his or her claim he or she may request a review of such denial by making
application in writing to the Committee within sixty (60) days after receipt of such denial. An Eligible Employee (or his or her
duly authorized legal representative) shall be provided, upon written request to the Committee and free of charge, reasonable access to,
and copies of, all documents, records or other information in the Company’s possession relevant to his or her claim and may submit
comments, documents, records and other information relating to the claim, which shall be taken into account by the Committee in reviewing
its denial of the Eligible Employee’s claim, without regard to whether such information was submitted or considered in the initial
claim.

 

(c)    Within
sixty (60) days after receipt of a written appeal (unless special circumstances require an extension of up to sixty (60) days, in
which case written notice of the extension shall be furnished to the Eligible Employee prior to the end of the initial sixty (60)-day
period, indicating the special circumstances requiring an extension and the date by which the Committee expects to render its decision
on review), the Committee shall notify the Eligible Employee of the final decision in writing. In the event the claim is wholly or partially
denied on review, such written notification shall (i) state the specific reason or reasons for the denial, (ii) make specific
reference to the relevant Plan provisions on which the denial is based, (iii) a statement of the Eligible Employee’s entitlement,
upon written request to the Committee and free of charge, reasonable access to, and copies of, all documents, records or other information
in the Company’s possession relevant to his or her claim, and (iv) describe the Eligible Employee’s right to bring a
civil action under Section 502(a) of ERISA.

 

(d)   Notwithstanding
the foregoing, upon the mutual agreement of the Eligible Employee and the Committee, any claim, dispute or controversy that has been submitted
by the Eligible Employee in writing to the Committee may be submitted directly to arbitration in accordance with Section 3.4.

 

3.4         Any
claim, dispute or controversy arising under or in connection with the Plan, and which is not resolved in accordance with Section 3.3,
shall be settled exclusively by arbitration in Wilmington, Delaware. All claims, disputes and controversies shall be submitted to the
CPR Institute for Dispute Resolution (“CPR”) in accordance with the CPR’s rules then in effect. The claim,
dispute or controversy shall be heard and decided by three (3) arbitrators selected from CPR’s employment panel. The arbitrators’
decision shall be final and binding on all parties. Judgment may be entered on the arbitrators’ award in any court having jurisdiction.

 

3.5         Any
purported termination of an Eligible Employee’s employment shall be communicated by written Notice of Termination from the Company
to the Eligible Employee in accordance with Section 5.7. For purposes of this Plan, a “Notice of Termination”
shall mean a notice which shall specify the Severance Date (which shall not be more than thirty (30) days after the date such Notice of
Termination is given).

 

SECTION 4 .PLAN MODIFICATION OR TERMINATION.

 

4.1          The
Plan may be amended or terminated by the Board at any time; provided, however, that the Committee may make amendments
to the Plan (a) that are required by applicable law, (b) that will have minimal effect upon the Company’s cost of providing
benefits under the Plan, or (c) that do not change or alter the character and intent of the Plan. Notwithstanding the foregoing,
any termination of the Plan, or amendment that materially adversely affects any Eligible Employee, shall not be effective as to such Eligible
Employee until the first anniversary of the date that such Eligible Employee receives written notice from the Company of such termination
or amendment.

 

    5

     

    

 

SECTION 5. GENERAL PROVISIONS.

 

5.1          Except
as otherwise provided herein or by law, no right or interest of any Eligible Employee under the Plan shall be assignable or transferable,
in whole or in part, either directly or by operation of law or otherwise, including, without limitation, by execution, levy, garnishment,
attachment, pledge or in any manner. No attempted assignment or transfer of any such right or interest shall be effective, and no right
or interest of any Eligible Employee under the Plan shall be liable for, or subject to, any obligation or liability of such Eligible Employee.
The Plan shall inure to the benefit of, and be binding upon, the Company and its successors and assigns.

 

5.2.         Neither
the establishment of the Plan, nor any modification thereof, nor the creation of any fund, trust or account, nor the payment of any benefits
shall be construed as giving any Eligible Employee, or any person whomsoever, the right to be retained in the service of the Company,
and all Eligible Employees shall remain subject to discharge to the same extent as if the Plan had never been adopted.

 

5.3.        If
any provision of this Plan shall be held invalid or unenforceable, such invalidity or unenforceability shall not affect any other provisions
hereof, and this Plan shall be construed and enforced as if such provisions had not been included.

 

5.4.        If
a Severed Employee dies while any amount is still payable to such Severed Employee, all such amounts, unless otherwise provided herein,
shall be paid in accordance with the terms of this Plan to the executor, personal representative or administrators of the Severed Employee’s
estate.

 

5.5.        The
headings and captions herein are provided for reference and convenience only, shall not be considered part of the Plan, and shall not
be employed in the construction of the Plan.

 

5.6.        The
Plan shall not be funded. No Eligible Employee shall have any right to, or interest in, any assets of the Company which may be applied
by the Company to the payment of benefits or other rights under this Plan.

 

5.7.        Any
notice or other communication required or permitted pursuant to the terms hereof shall be in writing and shall be deemed to have been
duly given when personally delivered or when mailed by United States certified mail, return receipt requested, or by overnight courier,
postage prepaid, to the Company at its corporate headquarters address, to the attention of the Chief Legal Officer of the Company, or
to the Eligible Employee at the Eligible Employee’s most recent home address reflected on the books and records of the Company.

 

5.8.        This
Plan shall be construed and enforced according to the laws of the State of Delaware, without regard to its principles of conflicts of
law.

 

5.9.        Payments
to a Severed Employee under this Plan shall be in lieu of any severance or similar payments that otherwise might be payable under any
plan, program, policy or agreement sponsored or maintained by the Company that provides severance benefits to employees upon termination
of employment, except that (a) the payment or acceleration of equity or equity-based awards shall be in addition to, rather than
in lieu of, any payment or benefits due under the Plan and (b) if a Severed Employee receives severance payments under the Company’s
Amended and Restated Change in Control Severance Plan in connection with such Severed Employee’s Severance Event, then no payments
will be provided to such Severed Employee under this Plan.

 

    6

     

    

 

5.10.      The
obligations under this Plan are intended to comply with the requirements of Section 409A of the Code or an exemption or exclusion
therefrom and shall in all respects be administered in accordance with Section 409A of the Code. Each payment of compensation under
this Plan shall be treated as a separate payment of compensation for purposes of applying Section 409A of the Code. All payments
to be made upon a termination of employment under this Plan may only be made upon a “separation from service” under Section 409A
of the Code to the extent necessary in order to avoid the imposition of penalty taxes on a Severed Employee pursuant to Section 409A
of the Code. In no event may a Severed Employee, directly or indirectly, designate the calendar year of any payment under this Plan. Notwithstanding
anything to the contrary in this Plan, all reimbursements and in-kind benefits provided under this Plan that are subject to Section 409A
of the Code shall be made in accordance with the requirements of Section 409A of the Code, including without limitation, where applicable,
the requirement that (a) the amount of expenses eligible for reimbursement, or in-kind benefits provided, during a calendar year
may not affect the expenses eligible for reimbursement, or in-kind benefits to be provided, in any other calendar year; (b) the reimbursement
of any eligible fees and expenses shall be made no later than the last day of the calendar year following the year in which the applicable
fees and expenses were incurred; and (c) the right to reimbursement or in-kind benefits is not subject to liquidation or exchange
for another benefit.

 

[Signature page follows.]

 

    7

     

    

 

IN WITNESS WHEREOF, the undersigned has caused this Plan to be effective
as of the date first set forth above.

 

	HOWMET AEROSPACE INC.	 
	 	 	 
	 	 	 
	By:	/s/ Neil E. Marchuk	 
	 	 	 
	Name:	Neil E. Marchuk	 
	 	 	 
	Title: 	Executive Vice President and	 
		Chief Human Resources Officer	 

 

    8

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