Document:

Executive Securities Agreement

 EXHIBIT 10.1 
  
 EXECUTION COPY 
  
 KINGPIN HOLDINGS, LLC 
  
 EXECUTIVE SECURITIES AGREEMENT 
  
 THIS EXECUTIVE SECURITIES AGREEMENT (this “Agreement”) is made as of February 27, 2004, by and between Kingpin Holdings, LLC, a
Delaware limited liability company, (the “Company”), and Frederick R. Hipp (the “Executive Securityholder”). Certain capitalized terms used herein are defined in Section 6 hereof. Capitalized terms used
but not defined herein shall have the meanings set forth in the Securityholders Agreement dated as of the date hereof (the “Securityholders Agreement”) by and among the Company and certain Securityholders of the Company. 

 
 The parties hereto desire to enter into this Agreement for the purposes,
among others, of (i) enabling the Executive Securityholder to purchase, and the Company to sell, the Executive Securities, (ii) enabling the Company to issue Options to the Executive Securityholder, (iii) assuring continuity in the
management and ownership of the Company, and (iv) limiting the manner and terms by which the Options and Executive Securities may be transferred. 
  
 NOW, THEREFORE, in consideration of the mutual covenants contained herein and other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, the parties to this Agreement hereby agree as follows: 
  
 1. Purchase and Sale of Executive Securities. 
  
 (a) Upon execution of this Agreement, the Executive Securityholder shall purchase, and the Company shall sell, 300,000 Common Units at a price of $10.00 per unit (collectively, the “Executive
Securities,” as further defined in Section 6 hereof). The Company shall deliver to the Executive Securityholder copies of the certificates representing such Common Units, and the Executive Securityholder shall deliver to the
Company a cashier’s or certified check or wire transfer of funds in the aggregate amount of $3,000,000. 
  
 (b) Until the occurrence of a Sale of the Company, all certificates evidencing the Executive Securities shall be held by the Company for the benefit of
the Executive Securityholder. Upon the occurrence of a Sale of the Company, the Company will return the certificates for the Executive Securities to the record holders thereof. Upon the occurrence of a Public Offering, the Company will return to the
record holders thereof certificates representing the Executive Securities. 
  
 (c) In connection with the purchase and sale of the Executive Securities, the Executive Securityholder represents and warrants that: 
  
 (i) the Executive Securities to be acquired by the Executive Securityholder pursuant to this Agreement shall
be acquired for the Executive 

 
Securityholder’s own account and not with a view to, or intention of, distribution thereof in violation of the Securities Act, or any applicable state
securities laws, and the Executive Securities shall not be disposed of in contravention of the Securities Act or any applicable state securities laws; 
  
 (ii) the Executive Securityholder is an executive officer of the Company or a subsidiary thereof, is sophisticated in financial matters
and is able to evaluate the risks and benefits of the investment in the Executive Securities; 
  
 (iii) the Executive Securityholder is able to bear the economic risk of his or her investment in the Executive Securities for an
indefinite period of time. The Executive Securityholder understands that the Executive Securities have not been registered under the Securities Act and, therefore, cannot be sold unless subsequently registered under the Securities Act or an
exemption from such registration is available; 
  
 (iv) the Executive Securityholder has had an opportunity to ask questions and receive answers concerning the terms and conditions of the offering of the Executive Securities and has had full access to such other information concerning the
Company as he or she has requested; and 
  
 (v)
this Agreement constitutes the legal, valid and binding obligation of the Executive Securityholder, enforceable in accordance with its terms, and the execution, delivery and performance of this Agreement by the Executive Securityholder does not and
shall not conflict with, violate or cause a breach of any agreement, contract or instrument to which the Executive Securityholder is a party or any judgment, order or decree to which the Executive Securityholder is subject. 
  
 (d) As an inducement to the Company to issue the Executive Securities to the
Executive Securityholder hereunder, and as a condition thereto, the Executive Securityholder acknowledges and agrees that: 
  
 (i) neither the issuance of the Executive Securities to the Executive Securityholder hereunder nor any provision contained herein shall
entitle the Executive Securityholder to remain in the employment of the Company or its subsidiaries or affect the right of the Company or its subsidiaries to terminate the Executive Securityholder’s employment at any time; and 
  
 (ii) neither the Company nor its subsidiaries shall have any
duty or obligation to disclose to the Executive Securityholder, and the Executive Securityholder shall have no right to be advised of, any information regarding the Company or its subsidiaries at any time prior to, upon or in connection with the
repurchase of the Executive Securities upon the termination of Executive Securityholder’s employment with the Company or its subsidiaries or as otherwise provided hereunder. 
  
 (e) Within 30 days after the date of hereof, the Executive Securityholder will make an effective election with the Internal
Revenue Service under Section 83(b) of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”) and the regulations promulgated thereunder in the form of Exhibit C attached hereto. 
  

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 (f) At the Closing, (i) the Executive Securityholder shall execute in blank ten securities transfer
powers in the form of Exhibit A attached hereto (the “Securities Powers”) with respect to the Executive Securities and shall deliver such Securities Powers to the Company. The Securities Powers shall authorize the Company to
assign, transfer and deliver the Executive Securities to the appropriate acquirer thereof pursuant to Section 3 below or Section 2 of the Securityholders Agreement and under no other circumstances, and (ii) the Executive
Securityholder’s spouse shall execute the consent in the form of Exhibit B attached hereto. 
  
 2. Grant and Vesting of Options. 
  
 (a) Grant of Options. The Company hereby grants to the Executive Securityholder 417,526 options (the “Options”), each of 313,145
of which give the Executive Securityholder the right to purchase one Common Unit each at an exercise price of $10.00 per unit and each of 104,381 of which give the Executive Securityholder the right to purchase one Common Unit each at an exercise
price of $20.00 per unit (as such number of units and exercise prices are equitably adjusted for any unit splits, dividends, combinations, recapitalizations, reorganizations, or other like change affecting the Common Units). Any Common Units or
other securities issued or issuable upon exercise of the Options (and any securities issued with respect to any such Common Units or other securities by way of a unit split, dividend, recapitalization or any other reclassification or reorganization)
are referred to herein as “Option Units,” and any Common Units or other securities issued upon exercise of the Options shall be considered Executive Securities for purposes of this Agreement. The Options granted to Executive are not
intended to be “incentive stock options” within the meaning of Section 422 of the Code. 
  
 (b) Exercisability. The Options may be exercised only to the extent they have become finally vested hereunder. Any Options which have vested
pursuant to the terms hereof are referred to herein as “Vested Options.” All other Options are referred to herein as “Unvested Options.” 
  
 (c) Vesting of Options. 
  
 (i) Except as otherwise provided in this Section 2(c), the Options will become vested in accordance with the following
schedule, if as of each such date, the Executive Securityholder is still employed by the Company or any of its Subsidiaries: 
  

			
	 Date

	 	 Cumulative Percentage of
 Options to be Vested

	1st Anniversary of date hereof	 	25%
		
	2nd Anniversary of date hereof	 	50%
		
	3rd Anniversary of date hereof	 	75%
		
	4th Anniversary of date hereof	 	100%

  
 Upon the occurrence of
a Sale of the Company, all Options which have not yet become vested shall become vested as of immediately prior to the time of such event, if as of 

  

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immediately prior to the time of such event, the Executive Securityholder is still employed by the Company or any of its Subsidiaries. 
  
 (ii) If the Executive Securityholder’s employment with
the Company terminates due to the Executive Securityholder’s death or Disability, then the Options will continue to vest as if the Executive Securityholder had continued to hold such Options and remained employed by the Company through the next
succeeding anniversary date of this Agreement. 
  
 (iii) If the Executive Securityholder’s employment with the Company terminates due to the Executive Securityholder’s termination without Cause or resignation with Good Reason, in either case, more than 180 days after an
anniversary date of this Agreement, then the Options will continue to vest as if the Executive Securityholder had continued to hold such Options and remained employed by the Company through the next succeeding anniversary date of this Agreement.

  
 (d) Expiration of Options. Notwithstanding any other
provision herein or any implication to the contrary, (i) all Unvested Options will automatically expire and cease to be exercisable immediately upon termination of Executive’s employment with the Company and its Subsidiaries for any
reason, except as set forth in Section 2(c)(ii) and 2(c)(iii), (ii) all Vested Options will expire and cease to be exercisable upon the earlier of (x) the date and time at which the closing of a repurchase transaction
pursuant to Section 4 below occurs, (y) the end of the 30th day following termination of the Executive Securityholder’s employment with the Company and its subsidiaries for any reason other than death or Disability, and
(z) one year following termination of the Executive Securityholder’s employment as a result of his death or Disability, (iii) all Vested Options will expire and cease to be exercisable immediately following a Sale of the Company if
not exercised in connection therewith, and (iv) in any case, all Options (whether Vested or Unvested) shall expire upon the tenth anniversary of the date of this Agreement. 
  
 (e) Procedure for Exercise. The Executive Securityholder may exercise all or any portion of the Options, to the
extent they have vested and are outstanding, at any time and from time to time prior to their expiration, by delivering to the Company written notice of such exercise (an “Exercise Notice”) accompanied by the aggregate applicable
exercise price for the Options being exercised payable in cash or by check, or at the Executive Securityholder’s option, by authorizing the Company to withhold from issuance a number of Option Units issuable upon exercise of the Vested Options
which when multiplied by the Fair Market Value of the Common Units is equal to the aggregate applicable exercise price, as the case may be, for the Vested Options being exercised, subject to compliance with all applicable tax withholding
requirements. The Exercise Notice shall set forth the number of Options to be exercised, the applicable Exercise Price, and will contain a written acknowledgment that Executive has read and has been afforded an opportunity to ask questions of the
Company’s management regarding all financial and other information provided to the Executive Securityholder regarding the Company and its Subsidiaries. As a condition to the exercise of the Options, the Executive Securityholder shall permit the
Company to deliver to the Executive Securityholder all financial and other information regarding the Company it believes necessary to enable the Executive Securityholder to make an informed investment decision, and the Executive Securityholder shall
make all 

  

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customary investment representations (including, without limitation, regarding securities compliance) which the Company shall reasonably require. 

 
 (f) Non-transferability of Options. Options may not be Transferred
other than by will or the laws of descent and distribution. During the Executive Securityholder’s lifetime, the Options may be exercised only by the Executive Securityholder or his guardian or legal representative. In the event of the Executive
Securityholder’s death, the Options may be exercised only (i) by the executor or administrator of the Executive Securityholder’s estate or the person or persons to whom the Options shall pass by will or the laws of descent and
distribution, and (ii) to the extent that the Executive Securityholder was entitled to exercise such Options on the date of his death or otherwise pursuant to Section 2(c)(ii) or 2(c)(iii). 
  
 (g) Withholding Taxes. It shall be a condition of the exercise of any
Option that the Executive make appropriate payment or other provision acceptable to the Company with respect to any withholding tax requirement arising from such exercise, including but not limited to any federal and state income tax and FICA and
FUTA withholding. The amount of withholding tax required, if any, with respect to any Option exercise shall be determined by the appropriate financial officer of the Company, and the Executive shall furnish such information and make such
representations as such officer requires to make such determination. 
  
 3. Restrictions on Transfer of Executive Securities. 
  
 (a) Transfer of Executive Securities. The holders of Executive Securities shall not sell, transfer, assign, pledge or otherwise dispose of (a “Transfer”) any interest in any Executive Securities, except pursuant to
(i) the provisions of Section 2 of the Securityholders Agreement, (ii) an Approved Sale, (iii) the provisions of Section 3(b) hereof or (iv) the provisions of Section 4 hereof. 
  
 (b) Certain Permitted Transfers. The restrictions set forth in this
Section 3 shall not apply with respect to any Transfer of Executive Securities made (i) pursuant to applicable laws of descent and distribution or to such Person’s legal guardian in case of any mental incapacity or among such
Person’s Family Group, or (ii) at such time as the CHS Group sells Common Units in a Public Sale, but in the case of this clause (ii) only an amount of Common Units (the “Transfer Amount”) equal to the number of
Common Units owned by the Executive Securityholder multiplied by a fraction (the “Transfer Fraction”), the numerator of which is the number of Common Units sold by the CHS Group in such Public Sale and the denominator of which is
the total number of Common Units held by the CHS Group prior to the Public Sale; provided that, if at the time of a Public Sale by the CHS Group, the Executive Securityholder chooses not to Transfer the Transfer Amount, the Executive
Securityholder shall retain the right to Transfer an amount of Common Units at a future date equal to the number of Common Units owned by the Executive Securityholder at such future date multiplied by the Transfer Fraction; provided further
that, the restrictions contained in this Section 3 will continue to be applicable to the Executive Securities after any Transfer of the type referred to in clause (i) and the transferees of such Executive Securities will agree
in writing to be bound by the provisions of this Agreement. Any transferee of Executive Securities pursuant to a transfer in accordance with the provisions of this Section 3(b) is herein referred to as a “Permitted
Transferee.” Upon the transfer of Executive Securities pursuant to this Section 3(b), the transferring Executive 

  

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Securityholder will deliver a written notice (a “Transfer Notice”) to the Company. In the case of a Transfer pursuant to clause
(i) hereof, the Transfer Notice will disclose in reasonable detail the identity of the Permitted Transferee(s). 
  
 (c) Termination of Restrictions. The restrictions set forth in this Section 3 will continue with respect to each Executive Security
until the earlier of (i) the date on which such Executive Security has been transferred in a Public Sale as permitted by this Section 2, or (ii) the consummation of an Approved Sale. 
  
 (d) Legends. The certificates representing the Executive Securities
will bear a legend in substantially the following form: 
  
 “THE SECURITIES REPRESENTED BY THIS CERTIFICATE WERE ORIGINALLY ISSUED AS OF FEBRUARY 27, 2004, HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), AND MAY NOT BE SOLD OR TRANSFERRED
IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT UNDER THE ACT OR AN EXEMPTION FROM REGISTRATION THEREUNDER. THE SECURITIES REPRESENTED BY THIS CERTIFICATE ARE ALSO SUBJECT TO ADDITIONAL RESTRICTIONS ON TRANSFER, CERTAIN REPURCHASE OPTIONS AND
CERTAIN OTHER AGREEMENTS SET FORTH IN AN EXECUTIVE SECURITIES AGREEMENT BETWEEN THE COMPANY AND AN EXECUTIVE OF THE COMPANY DATED AS OF FEBRUARY 27, 2004. A COPY OF SUCH AGREEMENT MAY BE OBTAINED BY THE HOLDER HEREOF AT THE COMPANY’S
PRINCIPAL PLACE OF BUSINESS WITHOUT CHARGE.” 
  
 4.
Repurchase of Executive Securities. 
  
 (a) Repurchase of
Executive Securities without Cause, etc. If Executive Securityholder’s employment with the Company terminates (the “Termination”) due to termination by the Company without Cause (as defined below), the Executive
Securityholder’s death or Disability or the Executive Securityholder’s resignation for Good Reason, then the Company and the CHS Group shall have the right to repurchase all or a portion of the Executive Securities of such Executive
Securityholder at a price equal to the greater of (i) Fair Market Value and (ii) original cost. If Executive Securityholder’s Termination is due to Executive’s resignation without Good Reason, then the Company and the CHS Group
shall have the right to repurchase all or a portion of the Executive Securities of such Executive Securityholder at a price equal to Fair Market Value; provided that with respect to Option Units, the repurchase price in such circumstance
shall be the lesser of (i) Fair Market Value and (ii) the Exercise Price paid therefore. 
  
 (b) Repurchase of Executive Securities for Cause. If Executive Securityholder’s Termination is due to termination by the Company for Cause,
then the Company and the CHS Group shall have the right to repurchase all or a portion of the Executive Securities at a price equal to the lesser of (i) Fair Market Value and (ii) original cost. 
  

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 (c) Repurchase Procedure for the Company. The Company may elect to repurchase all or a portion of
the Executive Securities (the “Available Securities”) after the Executive Securityholder’s employment with the Company has terminated as described in Sections 4(a) or 4(b) (the “Repurchase
Option”) by delivery of written notice (a “Repurchase Notice”) to the holders of such Executive Securities within 90 days after the date of the Termination (the “Repurchase Notice Period”). The Repurchase
Notice shall set forth the aggregate consideration to be paid for such Available Securities and the time (not to be later than 10 days after such notice) and place for the closing of the transaction. In making their respective elections to
repurchase Available Securities, the Company (and the CHS Group below) may distinguish whether they are repurchasing Option Units or other Executive Securities. 
  

(d) Repurchase Procedure for the CHS Group. If for any reason the Company does not elect to purchase all of the Available Securities, the CHS
Group shall be entitled to exercise the Repurchase Option for all or a portion of the Available Securities. As soon as practicable after the Company has determined that it will not purchase all of the Available Securities, but in any event within 60
days after the Termination, the Company shall give written notice (the “Option Notice”) to each member of the CHS Group setting forth the number of Available Securities and the purchase price for the Available Securities. The
members of the CHS Group may elect to purchase all or a portion of the Available Securities by giving written notice to the Company within 20 days after the Option Notice has been delivered to such member of the CHS Group by the Company. If the
members of the CHS Group elect to purchase an aggregate amount of Available Securities in excess of the amount of Available Securities specified in the Option Notice, the Available Securities shall be allocated among the members of the CHS Group
based on the amount of such type or types of Securityholder Securities (as defined in the Securityholders Agreement) owned by each member of the CHS Group on the date of the Option Notice. Any member of the CHS Group may condition his, her or its
election to purchase such Available Securities on the election of one or more other members of the CHS Group to purchase Available Securities. As soon as practicable, and in any event within ten days after the expiration of the 20 day period set
forth in the immediately preceding sentence, the Company shall deliver a Repurchase Notice to the holders of such Available Securities setting forth the aggregate consideration to be paid by the respective members of the CHS Group for such Available
Securities and the time (not to be later than 10 days after such notice) and place for the closing of the transaction. At the time the Company delivers such Repurchase Notice to the holders of such Available Securities, the Company shall also
deliver written notice to each member of the CHS Group setting forth the amount of securities such member is entitled to purchase, the aggregate purchase price and the time and place of the closing of the transaction. 
  
 (e) Manner of Payment. The Company and/or a member of the CHS Group
shall pay for the Available Securities to be repurchased pursuant to the Repurchase Option by delivery of a cashier’s check or wire transfer of funds. In addition, the Company may pay the purchase price for the Available Securities to be
repurchased from a holder of Executive Securities by offsetting against any indebtedness or obligations for advanced or borrowed funds owed by such holder of Executive Securities. Notwithstanding anything to the contrary contained in this Agreement,
all repurchases of Executive Securities by the Company shall be subject to applicable federal and state laws and to restrictions contained in the Company’s and its Subsidiaries’ debt financing arrangements. If such debt financing
restrictions prohibit the 

  

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repurchase of Executive Securities hereunder which the Company and/or the CHS Group is otherwise entitled to make, the time period for the Company and/or the
CHS Group to consummate the repurchase of Available Securities as provided in this Section 4 shall be extended for up to an additional 90 days after the Repurchase Notice Period (the “Extension Period”) and the Company
and/or the CHS Group shall make such repurchases within the Extension Period if, and promptly as, permitted to do so in light of debt financing restrictions. Notwithstanding the foregoing, if the repurchase of Available Securities has not been
consummated within the Extension Period, the Repurchase Option shall lapse. 
  
 (f) Revocation. Notwithstanding anything to the contrary contained in this Agreement, if in connection with a Repurchase Option the Executive Securityholder delivers the notice of disagreement described in the
definition of Fair Market Value, or if the Fair Market Value of the Executive Securities is determined pursuant to the procedure set forth in the definition thereof to be an amount more than 10% greater than the repurchase price for Executive
Securities originally determined by the Board, each of the Company and each member of the CHS Group who has exercised its or their Repurchase Option shall have the right to revoke its, their or his exercise of the Repurchase Option, as the case may
be, for all of the Executive Securities elected to be repurchased by it, or them by delivering notice of such revocation in writing to the holders of the Executive Securities during (i) the thirty-day period beginning on the date the Company
and the relevant members of the CHS Group receive the Executive Securityholder’s written notice of disagreement and (ii) the thirty-day period beginning on the date the Company, the Executive Securityholder and the relevant members of the
CHS Group are given written notice that the Fair Market Value of the Executive Securities was finally determined to be an amount more than 10% greater than the repurchase price for such Executive Securities originally determined by the Board. The
closing of the transaction shall be postponed until the expiration of the thirty-day period described in the preceding sentence and shall in any event be postponed until the Fair Market Value of the Executive Securities is finally determined
pursuant to the procedure described in the definition of Fair Market Value. 
  
 (g) Termination of Certain Repurchase Options. The Repurchase Option set forth in Section 4(a) shall terminate with respect to the Executive Securities upon (i) consummation of a Public
Offering or (ii) consummation of an Approved Sale. 
  
 (h)
Additional Repurchase Option. If any Options are exercised by the Executive Securityholder or the executor or administrator of the Executive Securityholder’s estate for Option Units after the Repurchase Notice Period, the Company and the
CHS Group shall have an additional Repurchase Option with respect to any such Option Units on substantially the same terms and in the time periods set forth in this Section 4 from the date of exercise. 
  
 5. Transfer. Prior to transferring any Executive Securities (other
than in a Public Sale or an Approved Sale) to any Person, the Executive Securityholder or the transferring holder of Executive Securities, as the case may be, will cause the prospective transferee to be bound by this Agreement and to execute and
deliver to the Company and the other Securityholders a counterpart to this Agreement. Any Transfer or attempted Transfer of any Executive Securities in violation of any provision of this Agreement shall be void, and the Company shall not record such
Transfer on its books or treat any purported transferee of such Executive Securities as the owner of such units for any purpose. 
  

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 6. Definitions. 
  
 “Affiliate” means with respect to any Person, any other Person controlling, controlled by, or under common
control with such first Person and in the case of a Person which is a partnership, any partner of that Person. 
  
 “Board” means the Board of Managers of the Company, established pursuant to the LLC Agreement. 
  
 “Cause” has the meaning set forth in the Employment
Agreement. 
  
 “CHS” means Code
Hennessy & Simmons IV LP, a Delaware limited partnership and any Affiliate thereof. 
  
 “CHS Common Units” means any Common Units issued to or held by the CHS Group. 
  
 “CHS Group” means CHS, CHS Associates IV and any other affiliates of CHS who acquire securities of the Company from time to time.

  
 “Common Units” means the Company’s
voting common units and any other securities into which such units may be changed by reason of a recapitalization, reorganization, merger, consolidation or any other change in the structure or capitalization of the Company, including but not limited
to shares of common stock of any corporate successor to the business of the Company, whether issued in connection with a public offering of securities of such entity or otherwise. 
  
 “Disability “ has the meaning set forth in the Employment Agreement. 
  
 “Employment Agreement “ means that certain Employment
Agreement dated as of the date hereof by and between the Executive Securityholder and AMF Bowling Worldwide, Inc. 
  
 “Executive Securities” will continue to be Executive Securities in the hands of any holder other than Executive (except for the Company
and other Securityholders, and except for transferees in a Sale of the Company), and except as otherwise provided herein, each such other holder of Executive Securities will succeed to all rights and obligations attributable to Executive as a holder
of Executive Securities hereunder. Executive Securities will also include the Company’s securities issued with respect to Executive Securities by way of a unit split or unit dividend and securities into which such units may be changed by reason
of a recapitalization, reorganization, merger, consolidation or any other change in the structure or capitalization of the Company, including but not limited to debt or shares of common stock and/or preferred stock of any corporate successor to the
business of the Company, whether issued in connection with a Public Offering of securities of such entity or otherwise. 
  
 “Fair Market Value” of any Executive Securities means the composite closing price of the sales of such Executive Securities on the
securities exchanges on which such Executive Securities may at the time be listed (as reported in The Wall Street Journal), or, if 

  

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there have been no sales on any such exchange on any day, the average of the highest bid and lowest asked prices on all such exchanges at the end of such
day, or, if such Executive Securities are not so listed, the closing price (or last price, if applicable) of sales of such Executive Securities on The Nasdaq Stock Market (as reported in The Wall Street Journal), or if such Executive
Securities are not quoted in The Nasdaq Stock Market but are traded over-the-counter, the average of the highest bid and lowest asked prices on such day in the over-the-counter market as reported by the National Quotation Bureau Incorporated, or any
similar successor organization, in each such case averaged over a period of 21 days consisting of the day as of which the Fair Market Value is being determined and the 20 consecutive business days prior to such day. If at any time such Executive
Securities are not listed on any securities exchange, quoted in The Nasdaq Stock Market, or quoted in the over-the-counter market, the “Fair Market Value” of such Executive Securities shall mean the fair market value of such Executive
Securities as determined by the Board reasonably and in good faith on an enterprise basis, taking into account all relevant factors determinative of value (including the lack of liquidity of such Executive Securities due to the Company’s status
as a privately held corporation, but without regard to any discounts for minority interests), using valuation techniques then prevailing in the securities industry (e.g., discounted cash flows and comparable companies) and assuming full disclosure
of all relevant information and a reasonable period of time for effectuating such sale; provided that upon the Executive Securityholder’s request the Board shall provide the Executive Securityholder with reasonable supporting information
regarding the Board’s determination of Fair Market Value; and further provided that if the Executive Securityholder disagrees with the Board’s determination of Fair Market Value, then the Executive Securityholder shall provide
notice of his disagreement to the Company and the CHS Group within thirty days after the Board provides notice to the Executive Securityholder of its determination, in which case “Fair Market Value” shall be determined by an investment
banking firm agreed upon by the Company and the Executive Securityholder, which firm shall submit to the Company and the Executive Securityholder a report within 30 days of its engagement setting forth such determination. If the parties are unable
to agree on an investment banking firm within 20 days after the Executive Securityholder provides notice to the Board of his disagreement, the Company and the Executive Securityholder shall each select an investment bank of recognized national
standing and such two investment banking firms shall select a third investment banking firm. Such third investment banking firm shall render a determination within 30 days of its engagement. If an investment banking firm is to make the Fair Market
Value determination hereunder, the Executive Securityholder, on the one hand, and the Company, on the other hand, shall submit in writing their respective estimates of Fair Market Value at the time the investment banking firm is requested to make
such determination, and such investment banking firm’s determination of Fair Market Value shall no higher than the highest estimate nor lower than the lowest estimate as submitted by the Company and the Executive Securityholder. In the event
there is a disagreement between the Company and the Executive Securityholder over the determination hereunder, the costs and expenses of the investment banking firm which makes the Fair Market Value determination (as well as, if applicable, the
costs and expenses of any investment banking firms engaged (i) solely to choose another investment banking firm as contemplated in this paragraph and (ii) personally by Executive Securityholder to assist him in the determination of Fair
Market Value hereunder (such costs and expenses not to exceed $25,000)) will be shared by the Executive Securityholder and the Company based upon the relative percentage of the absolute differences between each party’s estimate and the amount
ultimately determined by the 

  

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investment banking firm. For example, if the Company submitted an estimate of the Fair Market Value which is $1.5 million less than the amount determined by
the investment banking firm, and the Executive Securityholder submitted an estimate of the Fair Market Value which is $1 million greater than the amount ultimately determined by the investment banking firm, the costs and expenses will be allocated
40% (i.e., 1 ÷ 2.5) to the Executive Securityholder and 60% (i.e., 1.5 ÷ 2.5) to the Company. If the Company or the CHS Group exercise their revocation rights under Section 4(f), then the expenses of the appraiser shall be
borne by the Company in all cases. The determination of such firm will be final and binding upon all parties. The Company may require that the investment banking firm keep confidential any non-public information received as a result of this
paragraph pursuant to reasonable confidentiality arrangements. Regardless of when a transaction based on a Fair Market Value valuation is executed, Fair Market Value shall be determined as of the date of the Termination of the Executive
Securityholder’s employment with the Company, except in the case of a repurchase pursuant to Section 4(h), in which case Fair Market Value shall be determined as of the date the applicable Options were exercised. 
  
 “Family Group” means (i) a Person’s spouse and
descendants (whether natural or adopted), (ii) any trust solely for the benefit of the Person and/or any of the Person’s spouse and/or descendants and (iii) any entity wholly owned by the Person. 
  
 “Good Reason” has the meaning set forth in the Employment
Agreement. 
  
 “LLC Agreement” means that certain
Amended and Restated Limited Liability Company Agreement dated as of the date hereof by and among the Company and its members, as amended from time to time in accordance with its terms. 
  
 “Person” means an individual, a partnership, a corporation, an association, a limited liability company, a
joint stock company, a trust, a joint venture, an unincorporated organization or any other entity (including, without limitation, any governmental entity or any department, agency or political subdivision thereof). 
  
 “Public Offering” means an initial public offering and sale
of equity securities of the Company. 
  
 “Public
Sale” means any sale of Executive Securities (i) to the public pursuant to an offering registered under the Securities Act or (ii) to the public through a broker, dealer or market maker pursuant to the provisions of Rule 144
(or any similar provision then in effect) adopted under the Securities Act (other than Rule 144(k) prior to a Public Offering). 
  
 “Registration Agreement” means the Registration Agreement dated as of the date hereof by and among the Company and certain
Securityholders of the Company. 
  
 “Sale of the
Company” means any transaction or series of transactions pursuant to which any Person(s) or a group of related Persons (other than the CHS Group and its Affiliates) in the aggregate acquire(s) (i) capital stock of the Company
possessing the voting power (other than voting rights accruing only in the event of a default, breach or event of noncompliance) to elect a majority of the Company’s board of managers (whether by merger, consolidation, reorganization,
combination, sale or transfer of the Company’s capital stock, shareholder or voting agreement, proxy, power of attorney or otherwise) or (ii) all or substantially all of the 

  

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Company’s assets determined on a consolidated basis; provided, that a Sale of the Company shall not include a Public Offering. 
  
 “Securities Act” means the Securities Act of 1933, as
amended from time to time. 
  
 “Securityholder”
means any Person, other than the Company, who is a party to the Securityholders Agreement as of the date hereof. 
  
 “Subsidiaries” means, with respect to any Person, any corporation, limited liability company, partnership, association or other business
entity of which (i) if a corporation, a majority of the total voting power of shares of stock entitled (without regard to the occurrence of any contingency) to vote in the election of directors, managers or trustees thereof is at the time owned
or controlled, directly or indirectly, by such Person or one or more of the other Subsidiaries of such Person or a combination thereof, or (ii) if a limited liability company, partnership, association or other business entity, a majority of the
partnership or other similar ownership interest thereof is at the time owned or controlled, directly or indirectly, by any Person or one or more Subsidiaries of such Person or entity or a combination thereof. For purposes hereof, a Person or Persons
shall be deemed to have a majority ownership interest in a limited liability company, partnership, association or other business entity if such Person or Persons shall be allocated a majority of limited liability company, partnership, association or
other business entity gains or losses or shall be or control any managing director or general partner of such limited liability company, partnership, association or other business entity. 
  
 7. Miscellaneous. 
  
 (a) Amendment and Waiver. The provisions of this Agreement may be amended and waived only with the prior written consent of the Company, the
holders of a majority of the CHS Common Units then outstanding and the Executive Securityholder. The failure of any party to enforce any of the provisions of this Agreement will in no way be construed as a waiver of such provisions and will not
affect the right of such party thereafter to enforce each and every provision of this Agreement in accordance with its terms. 
  
 (b) Severability. Whenever possible, each provision of this Agreement will 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 invalid, illegal or unenforceable in any respect under any applicable law or rule in any jurisdiction, such invalidity, illegality or unenforceability will not affect any other
provision or any other jurisdiction, but this Agreement will be reformed, construed and enforced in such jurisdiction as if such invalid, illegal or unenforceable provision had never been contained herein. 
  
 (c) Agreement. Except as otherwise expressly set forth herein, in the
Securityholders Agreement, or in the Registration Agreement, this Agreement, those documents expressly referred to herein (including the Securityholders Agreement) and other documents of even date herewith embody the complete agreement and
understanding among the parties and supersede and preempt any prior understandings, agreements or representations by or among the parties, written or oral, which may have related to the subject matter hereof in any way. 
  

 12 

 (d) Successors and Assigns. Except as otherwise provided herein, this Agreement will bind and
inure to the benefit of and be enforceable by the Company and its successors and assigns and the Executive Securityholder, and any subsequent holders of Executive Securities and their respective successors and assigns, so long as they hold Executive
Securities. 
  
 (e) Third Party Beneficiaries. The members
of the CHS Group are intended to be third-party beneficiaries of this entire Agreement and the rights and obligations of the parties hereto. It is understood and agreed by the parties hereto that this Agreement shall be enforceable by the holders of
a majority of the CHS Common Units then outstanding in accordance with this Agreement’s terms as though such holders of CHS Common Units were a party to every provision hereof. Except as expressly provided herein, no other third party
beneficiaries are intended by the parties hereto to be beneficiaries hereof. 
  
 (f) Counterparts; Facsimile Signature. This Agreement may be executed in separate counterparts each of which will be an original and all of which taken together shall constitute one and the same agreement. This
Agreement may be executed by facsimile signature. 
  
 (g)
Remedies. The holders of Executive Securities shall be entitled to enforce their rights under this Agreement specifically to recover damages by reason of any breach of any provision of this Agreement and to exercise all other rights existing
in their favor. The parties hereto agree and acknowledge that money damages may not be an adequate remedy for any breach of the provisions of this Agreement and that any holder of Executive Securities may in its sole discretion apply to any court of
competent jurisdiction for specific performance and/or injunctive relief (without posting a bond or other security) in order to enforce or prevent any violation of the provisions of this Agreement. 
  
 (h) Notices. Any notice provided for in this Agreement must be in
writing and must be either personally delivered, sent via facsimile, sent by first class mail (postage prepaid and return receipt requested) or sent by reputable overnight courier service (charges prepaid) to the Company, the Executive
Securityholder and to any member of the CHS Group at the addresses set forth below, or subsequent holder of Executive Securities subject to this Agreement, at such address as is indicated in the Company’s records, or at such address or to the
attention of such other Person as the recipient party has specified by prior written notice to the sending party. Notices will be deemed to have been given hereunder when delivered personally, three business days after deposit in the U.S. mail and
one business day after deposit with a reputable overnight courier service. 
  
 If to the Company: 
  
 Kingpin Holdings, LLC 
 c/o Code Hennessy & Simmons LLC 
 10 South Wacker Drive, Suite 3175 
 Chicago, IL 60606 
 Facsimile: (312) 876-3854 
 Attn: Thomas J. Formolo 
           Richard A. Lobo 
  

 13 

 with copies to: 
  
 Code Hennessy & Simmons IV LP 
 c/o Code Hennessy & Simmons LLC 
 10 South Wacker Drive, Suite 3175 
 Chicago, IL 60606 
 Facsimile: (312) 876-3854 
 Attn: Thomas J. Formolo 
           Richard
A. Lobo 
  
 and 
  
 Kirkland & Ellis LLP 
 200 East Randolph Drive 
 Chicago, IL 60601 
 Facsimile: (312) 861-2200 
 Attn: Kevin R. Evanich, P.C. 
  
 If to the Executive Securityholder: 
  
 Frederick R. Hipp 
 321 Dalehurst Ave. 
 Los Angeles, CA 90024 
 Facsimile: 
  
 with a copy to: 
  
 Pillsbury Winthrop LLP 
 725 South Figueroa Street, Suite 2800 
 Los Angeles, California 90017-5406 
 Facsimile: (213) 629-1033 
 Attn: Anna M. Graves, Esq. 
  
 If to the CHS Group: 
  
 Code Hennessy & Simmons IV LP 
 c/o Code Hennessy & Simmons LLC 

10 South Wacker Drive, Suite 3175 
 Chicago, IL 60606 
 Facsimile: (312) 876-3854 
 Attn: Thomas J. Formolo 
           Richard A. Lobo 
  

 14 

 with copies to: 
  
 Kirkland & Ellis LLP 
 200 East Randolph Drive 
 Chicago, IL 60601 
 Facsimile: (312) 861-2200 
 Attn: Kevin R. Evanich, P.C. 
  
 (i) Governing Law. The corporate law of the State of Delaware shall govern all issues and questions concerning the relative rights and obligations
of the Company and its Securityholders. All other issues and questions concerning the construction, validity, enforcement and interpretation of this Agreement and the exhibits and schedules hereto shall be governed by, and construed in accordance
with, the laws of the State of Delaware, without giving effect to any choice of law or conflict of law rules or provisions (whether of the State of Delaware or any other jurisdiction) that would cause the application of the laws of any jurisdiction
other than the State of Delaware. 
  
 (j) Descriptive
Headings. The descriptive headings of this Agreement are inserted for convenience only and do not constitute a part of this Agreement. 
  
 * * * * * 
  

 15 

 IN WITNESS WHEREOF, the parties hereto have executed this Executive Securities Agreement on the day and
year first above written. 
  

									
	COMPANY:	 	 	 	KINGPIN HOLDINGS, LLC
					
	 	 	 	 	 	 	By:	 	/S/    THOMAS J.
FORMOLO        
	 	 	 	 	 	 	 	 	Thomas J. Formolo
					
	 	 	 	 	 	 	Its:	 	Chairman of the Board

  

									
	 	 	 	 	 
				
	EXECUTIVE SECURITYHOLDER:	 	 	 	By:	 	/S/    FREDERICK R.
HIPP        
	 	 	 	 	 	 	 	 	Frederick R. Hipp

  

 16 

 EXHIBIT A 
  

FORM OF ASSIGNMENT 
  
 FOR VALUE RECEIVED, Frederick R. Hipp (“Executive”) does hereby sell, assign and transfer unto
                                , a
                    ,
                     Common Units of the Company standing in the undersigned’s name on the books of the Company represented by
Certificate Nos.              herewith pursuant to Section 1(f) of the Executive Securities Agreement dated February 27, 2004 between Executive and the Company, and for
such purpose only does hereby irrevocably constitute and appoint each principal of Code Hennessy & Simmons IV LP (acting alone or with one or more other such principals) as attorney to transfer the said Common Units on the books of the
Company with full power of substitution in the premises. 
  

									
	 	 	 	 	 
				
	Dated: ________ __, ____	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Frederick R. Hipp

  

 17 

 EXHIBIT B 
  

SPOUSAL CONSENT 
  
 The undersigned spouse of Executive hereby acknowledges that I have read the foregoing Executive Securities Agreement, Securityholders Agreement and
Registration Agreement referred to therein, each executed by Executive and dated as of the date hereof, and that I understand their contents. I am aware that the foregoing Executive Securities Agreement, Securityholders Agreement and Registration
Agreement provide for the repurchase of my spouse’s securities under certain circumstances and/or impose other restrictions on such securities (including, without limitation, the transfer restriction thereof). I agree that my spouse’s
interest in these securities is subject to these restrictions and any interest that I may have in such securities shall be irrevocably bound by these agreements and further, that my community property interest, if any, shall be similarly bound by
these agreements. 
  

									
	 	 	 	 	 
	 	 	 	 	 
				
	Date: __________, ____	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Spouse’s Name:
				
	Date: __________, ____	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Witness’ Name:

  

 18 

 EXHIBIT C 
  

February 27, 2004 
  
 PROTECTIVE ELECTION TO INCLUDE MEMBERSHIP 
 INTEREST IN GROSS INCOME PURSUANT TO 
 SECTION 83(b) OF THE INTERNAL REVENUE CODE 
  
 On February 27, 2004, the undersigned acquired 300,000 common units (the
“Units”) in Kingpin Holdings, LLC, a Delaware limited liability company (the “Company”), for $3,000,000. The Company has elected to be classified as a corporation for federal income tax purposes pursuant to Treasury
Regulation §301.7701-3. 
  
 Pursuant to §83(b) of the
Internal Revenue Code (the “Code”) and Treasury Regulation §1.83-2 promulgated thereunder, the undersigned hereby makes an election, with respect to the Units, to report as taxable income for the calendar year 2004 the excess
(if any) of the value of the Units on February 27, 2004 over the purchase price thereof. 
  
 The following information is supplied in accordance with Treasury Regulation § 1.83-2(e): 
  
 1. The name, address and social security number of the undersigned: 
  

			
	Name:	 	 Frederick R. Hipp
  

		
	Address:	 	 
		
	 	 	 
		
	Social Security No.:	 	 

  
 2. A description of
the property with respect to which the election is being made: 300,000 Units. 
  
 3. The date on which the Units were transferred: February 27, 2004. The taxable year for which such election is made: 2004. 
  

4. The restrictions to which the property is subject: In the event the undersigned ceases to be employed by the Company or its subsidiaries as a result
of termination for cause, each Unit may be repurchased for the lower of fair market value or original cost. 
  
 5. The fair market value on February 27, 2004 of the property with respect to which the election is being made, determined without regard to any
lapse restrictions: $10 per Unit. 
  
 6. The amount paid or to be
paid for such property: $10 per Unit. 
  
 * * * * * 
  

 19 

 A copy of this election is being furnished to the Company pursuant to Treasury Regulation
§ 1.83-2(e)(7). A copy of this election will be submitted with the 2004 federal income tax return of the undersigned pursuant to Treasury Regulation § 1.83-2(c). 
  

									
	 	 	 	 	 
				
	Dated: ________ __, 2004	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Frederick R. Hipp

  

 202004 Alcoa Stock Incentive Plan, as amended through November 11, 2005

 EXHIBIT 10.1 
  
 2004 ALCOA STOCK 
 INCENTIVE PLAN 
  
 (as amended effective November 11, 2005) 
  
 [Alcoa logo] 

 2004 ALCOA STOCK INCENTIVE PLAN 
  
 SECTION 1. PURPOSE. The purposes of the 2004 Alcoa Stock Incentive Plan are to encourage selected employees of the
Company and its Subsidiaries to acquire a proprietary and vested interest in the long-term growth and financial success of the Company, to generate an increased incentive to promote its well-being and profitability, to link the interests of such
employees to the long-term interests of shareholders and to enhance the ability of the Company and its Subsidiaries to attract and retain individuals of exceptional managerial, technical and professional talent upon whom, in large measure, the
sustained progress, growth and profitability of the Company depend. 
  
 SECTION 2. DEFINITIONS. As used in the Plan, the following terms have the meanings set forth below: 
  
 “Award” means any Option, Stock Appreciation Right, Contingent Stock Award, Performance Share, Performance Unit, Other Stock Unit Award, or any
other right, interest, or option relating to Shares or other property granted pursuant to the provisions of the Plan. 
  
 “Award Agreement” means any written agreement, contract, or other instrument or document evidencing any Award granted by the Committee
hereunder, which may, but need not, be executed or acknowledged by both the Company and the Participant. 
  
 “Beneficial Owner” means beneficial owner as defined in Rule 13d-3 under the Exchange Act. 
  
 “Board” means the Board of Directors of the Company. 
  
 “Change in Control” means the first to occur of any of the
following events: 
  
 (a) An Entity, other than a
trustee or other fiduciary of securities held under an employee benefit plan of the Company or any of its Subsidiaries, is or becomes a Beneficial Owner, directly or indirectly, of stock of the Company representing 20% or more of the total voting
power of the Company’s then outstanding stock and securities; provided, however, that for purposes of this subsection (a), the following acquisitions shall not constitute a Change of Control: (i) any acquisition directly from
the Company, (ii) any acquisition by the Company, (iii) any acquisition by any employee benefit plan (or related trust) sponsored or maintained by the Company or any corporation controlled by the Company or (iv) any acquisition by any
corporation pursuant to a transaction that complies with clauses (i) or (ii) of subsection (c) of this definition; 
  
 (b) individuals who, as of the date hereof, constitute the Board (the “Incumbent Board”), cease for any reason to constitute a
majority thereof; provided, 

  

 2 

 
however, that any individual becoming a director whose election, or nomination for election by the Company’s shareholders, was approved by a vote
of at least 75% of the directors then comprising the Incumbent Board shall be considered as though such individual was a member of the Incumbent Board, but excluding, for this purpose, any such individual whose initial assumption of office occurs as
a result of an actual or threatened election contest with respect to the election or removal of directors or other actual or threatened solicitation of proxies or consents by or on behalf of an Entity other than the Board; 
  
 (c) there is consummated a merger, consolidation or other
corporate transaction, other than (i) a merger, consolidation or transaction that would result in the voting securities of the Company outstanding immediately prior to such merger, consolidation or transaction continuing to represent (either by
remaining outstanding or by being converted into voting securities of the surviving Entity or any parent thereof) at least 55% of the combined voting power of the stock and securities of the Company or such surviving Entity or any parent thereof
outstanding immediately after such merger, consolidation or transaction, or (ii) a merger, consolidation or transaction effected to implement a recapitalization of the Company (or similar transaction) in which no Entity is or becomes the
Beneficial Owner, directly or indirectly, of stock and securities of the Company representing more than 20% of the combined voting power of the Company’s then outstanding stock and securities; 
  
 (d) the sale or disposition by the Company of all or
substantially all of the Company’s assets other than a sale or disposition by the Company of all or substantially all of the assets to an Entity at least 55% of the combined voting power of the stock and securities of which is owned by Persons
in substantially the same proportions as their ownership of the Company’s voting stock immediately prior to such sale; or 
  
 (e) the shareholders of the Company approve a plan of complete liquidation or dissolution of the Company. 
  
 “Change in Control Price” means the higher of (a) the highest
reported sales price, regular way, of a Share in any transaction reported on the New York Stock Exchange Composite Tape or other national exchange on which Shares are listed or on NASDAQ during the 60-day period prior to and including the date of a
Change in Control or (b) if the Change in Control is the result of a tender or exchange offer or a merger, consolidation or other corporate transaction, the highest price per Share paid in such tender or exchange offer or corporate transaction.
To the extent that the consideration paid in any such transaction described above consists all or in part of securities or other non-cash consideration, the value of such securities or other non-cash consideration shall be determined in the sole
discretion of the Board. 
  
 “Code” means the Internal
Revenue Code of 1986, as amended from time to time, and any successor thereto. 
  

  3 

 “Committee” means the Compensation and Benefits Committee of the Board, or any successor to
such committee, or a subcommittee thereof, composed of no fewer than two directors, each of whom is a Non-Employee Director and an “outside director” within the meaning of Section 162(m) of the Code, or any successor provision
thereto. 
  
 “Company” means Alcoa Inc., a Pennsylvania
corporation. 
  
 “Contingent Stock” means any Share
issued with the contingency or restriction that the holder may not sell, transfer, pledge or assign such Share and with such other contingencies or restrictions as the Committee, in its sole discretion, may impose (including, without limitation, any
contingency or restriction on the right to vote such Share and the right to receive any cash dividends), which contingencies and restrictions may lapse separately or in combination, at such time or times, in installments or otherwise, as the
Committee may deem appropriate. 
  
 “Contingent Stock
Award” means an award of Contingent Stock under Section 8 hereof. 
  
 “Covered Employee” means a “covered employee” within the meaning of Section 162(m)(3) of the Code, or any successor provision thereto. 
  
 “Employee” means any employee of the Company or of any Subsidiary.

  
 “Entity” means any individual, entity, person
(within the meaning of Section 3(a)(9) of the Exchange Act) or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the Exchange Act), other than (a) any employee plan established by the Company, (b) any affiliate (as
defined in Rule 12b-2 promulgated under the Exchange Act) of the Company, (c) an underwriter temporarily holding securities pursuant to an offering of such securities, or (d) a corporation owned, directly or indirectly, by
shareholders of the Company in substantially the same proportions as their ownership of the Company. 
  
 “Exchange Act” means the Securities Exchange Act of 1934, as amended. 
  
 “Fair Market Value” means, with respect to any property, the market value of such property determined by such
methods or procedures as shall be established from time to time by the Committee. 
  
 “Non-Employee Director” has the meaning set forth in Rule 16b-3(b)(3) under the Exchange Act, or any successor definition adopted by the Securities and Exchange Commission. 
  
 “Option” means any right granted to a Participant under the Plan or
predecessor plan allowing such Participant to purchase Shares at such price or prices and during such period or periods as the Committee shall determine. All Options granted under the Plan or predecessor plan are intended to be nonqualified stock
options for purposes of the Code. 
  

  4 

 “Other Stock Unit Award” means any right granted to a Participant by the Committee pursuant to
Section 10 hereof. 
  
 “Original Option” means any
Option other than a Reload Option granted by the company in connection with the Prior Plan or the predecessor plan. 
  
 “Participant” means an Employee who is selected by the Committee to receive an Award under the Plan. 
  
 “Performance Award” means any Award of Performance Shares or
Performance Units pursuant to Section 9 hereof. 
  
 “Performance Period” means that period established by the Committee at the time any Performance Award is granted or at any time thereafter during which any performance goals specified by the Committee with respect to such Award
are to be measured. A Performance Period may not be less than one year. 
  
 “Performance Share” means any grant pursuant to Section 9 hereof of a unit valued by reference to a designated number of Shares, which value may be paid to the Participant by delivery of such property as the Committee shall
determine, including, without limitation, cash, Shares or any combination thereof, upon achievement of such performance goals during the Performance Period as the Committee shall establish at the time of such grant or thereafter. 
  
 “Performance Unit” means any grant pursuant to Section 9
hereof of a unit valued by reference to a designated amount of property other than Shares, which value may be paid to the Participant by delivery of such property as the Committee shall determine, including, without limitation, cash, Shares or any
combination thereof, upon achievement of such performance goals during the Performance Period as the Committee shall establish at the time of such grant or thereafter. 
  
 “Person” means any individual, corporation, partnership, association, joint stock company, trust, unincorporated
organization or government or political subdivision thereof. 
  
 “Plan” means this 2004 Alcoa Stock Incentive Plan. 
  
 “Prior Plan” means the Alcoa Stock Incentive Plan adopted by the Company shareholders at the Company’s 1999 annual meeting. 
  
 “Reload Option” means an Option described in Section 6(e) of the Plan, granted in connection with the exercise of an option under the Prior
Plan or predecessor plan (an “antecedent award”). As a condition to the grant of a Reload Option, a Participant must elect at the time of exercise of the antecedent award that a designated portion, as determined by the Committee, of the
Shares issued upon exercise of the antecedent award shall be restricted in terms of transfer for the shorter of five years from the issuance date of the shares or the remainder of the participant’s career with Alcoa. 
  

  5 

 “Shares” means the shares of common stock of the Company, $1.00 par value. 
  
 “Stock Appreciation Right” means any right granted to a Participant
pursuant to Section 7 hereof to receive, upon exercise by the Participant, the excess of (a) the Fair Market Value of one Share on the date of exercise or, if the Committee shall so determine, at any time during a specified period before
the date of exercise over (b) the grant price of the right on the date of grant, or if granted in connection with an outstanding Option on the date of grant of the related Option, as specified by the Committee in its sole discretion, which,
except in the case of Substitute Awards or in connection with an adjustment provided in Section 4(g), shall not be less than the Fair Market Value of one Share on such date of grant of the right or the related Option, as the case may be. Any
payment by the Company in respect of such right may be made in cash, Shares, other property or any combination thereof, as the Committee, in its sole discretion, shall determine. 
  
 “Subsidiary” means any corporation in which the Company owns, directly or indirectly, stock possessing 50 percent
or more of the total combined voting power of all classes of stock in such corporation, and any corporation, partnership, joint venture, limited liability company or other business entity as to which the Company possesses a significant ownership
interest, directly or indirectly, as determined by the Committee. 
  
 “Substitute Awards” means Awards granted or Shares issued by the Company in assumption of, or in substitution or exchange for, awards previously granted, or the right or obligation to make future awards, by a company acquired by
the Company or any of its Subsidiaries or with which the Company or any of its Subsidiaries combines. 
  
 SECTION 3. ADMINISTRATION. The Plan shall be administered by the Committee. The Committee shall have full power and authority, subject to such
orders or resolutions not inconsistent with the provisions of the Plan as may from time to time be adopted by the Board, to: (i) select the Employees of the Company and its Subsidiaries to whom Awards may from time to time be granted hereunder;
(ii) determine the type or types of Award to be granted to each Participant hereunder; (iii) determine the number of Shares to be covered by each Award granted hereunder; (iv) determine the terms and conditions, not inconsistent with
the provisions of the Plan, of any Award granted hereunder; (v) determine whether, to what extent and under what circumstances Awards may be settled in cash, Shares or other property or canceled or suspended; (vi) determine whether, to
what extent and under what circumstances cash, Shares and other property and other amounts payable with respect to an Award under this Plan shall be deferred either automatically or at the election of the Participant; (vii) interpret and
administer the Plan and any instrument or agreement entered into under the Plan; (viii) establish such rules and regulations and appoint such agents as it shall deem appropriate for the proper administration of the Plan; and (ix) make any
other determination and take any other action that the Committee deems necessary or desirable for administration of the Plan. Decisions of the Committee shall be final, conclusive and binding upon all persons, including the Company, any Participant,
any shareholder and any Employee. 
  

  6 

 SECTION 4. SHARES SUBJECT TO THE PLAN. 
  
 (a) Subject to the adjustment provisions of Section 4(g) below and the
provisions of Section 4(b) through (f), commencing May 1, 2004, up to 30 million Shares may be issued in connection with Options and Stock Appreciation Rights under the Plan. 
  
 (b) In addition to the Shares authorized by Section 4(a), the following
Shares may be issued under the Plan: 
  
 (i)
Shares available for future awards under the Prior Plan as of the effective date of this Plan, and any shares that are not issued under the Prior Plan because of the cancellation, termination or expiration of awards under the Prior Plan or the
predecessor plan. 
  
 (ii) If a Participant
tenders, or has withheld, Shares in payment of all or part of the option price under a stock option granted under the Plan, the Prior Plan, or the predecessor plan, or in satisfaction of withholding tax obligations thereunder, the Shares tendered by
the Participant or so withheld shall become available for issuance under the Plan. 
  
 (iii) If Shares that are issued under the Plan are subsequently forfeited in accordance with the terms of the Award or an Award Agreement,
the forfeited Shares shall become available for issuance under the Plan. 
  
 (c) Subject to the adjustment provisions of Section 4(g), commencing May 1, 2004, up to 10 million Shares may be issued under Awards other than Options and Stock Appreciation Rights. 
  
 (d) If an Award may be paid only in Shares or in either cash or Shares, the
Shares shall be deemed to be issued hereunder only when and to the extent that payment is actually made in Shares. However, the Committee may authorize a cash payment under an Award in lieu of Shares if there are insufficient Shares available for
issuance under the Plan. 
  
 (e) Any Shares issued hereunder may
consist, in whole or in part, of authorized and unissued shares, treasury shares or shares purchased in the open market or otherwise. 
  
 (f) Shares issued or granted in connection with Substitute Awards shall not reduce the Shares available for issuance under the Plan or to a Participant in
any calendar year. 
  
 (g) In the event of any merger,
reorganization, consolidation, recapitalization, stock dividend, stock split, reverse stock split, spin-off or similar transaction or other change in corporate structure affecting the Shares, such adjustments and other substitutions shall be made to
the Plan and to Awards as the Committee in its sole discretion deems equitable or appropriate, including, without limitation, such adjustments in the aggregate number, class and kind of securities that may be delivered under the Plan, in the
aggregate or to any one Participant, in the number, class, kind and option or exercise price of securities subject to outstanding Options, 

  

  7 

 
Stock Appreciation Rights or other Awards granted under the Plan, and in the number, class and kind of securities subject to Awards granted under the Plan
(including, if the Committee deems appropriate, the substitution of similar options to purchase the shares of, or other awards denominated in the shares of, another company) as the Committee may determine to be appropriate in its sole discretion;
provided that the number of Shares subject to any Award shall always be a whole number. 
  
 SECTION 5. ELIGIBILITY. Any Employee shall be eligible to be selected as a Participant. 
  
 SECTION 6. STOCK OPTIONS. Options may be granted hereunder to Participants either alone or in addition to other Awards granted under the Plan. Any
Option granted under the Plan may be evidenced by an Award Agreement in such form as the Committee from time to time approves. Any such Option shall be subject to the terms and conditions required by this Section 6 and to such additional terms
and conditions, not inconsistent with the provisions of the Plan, as the Committee may deem appropriate in each case. 
  
 (a) Option Price. The purchase price per Share purchasable under an Option shall be determined by the Committee in its sole discretion;
provided that, except in connection with an adjustment provided for in Section 4(g), such purchase price shall not be less than the Fair Market Value of the Share on the date of the grant of the Option. 
  
 (b) Option Period. The term of each Original Option granted hereunder
shall not exceed six years from the date the Option is granted. 
  
 (c) Exercisability. Options shall be exercisable at such time or times as determined by the Committee at or subsequent to grant, provided, however, that the minimum vesting period of an Option (excluding the Options granted on
January 13, 2005) shall be one year. 
  
 (d) Method Of
Exercise. Subject to the other provisions of the Plan, any Option may be exercised by the Participant in whole or in part at such time or times, and the Participant may make payment of the Option price in such form or forms, including, without
limitation, payment by delivery of cash, Shares or other consideration (including, where permitted by law and the Committee, Awards) having a Fair Market Value on the exercise date equal to the total Option price, or by any combination of cash,
Shares and other consideration as the Committee may specify in the applicable Award Agreement. 
  
 (e) Reload Options. A Reload Option entitles the Participant to purchase Shares (i) that are covered by an antecedent award at the time of its exercise, but are not issued upon such exercise, or
(ii) whose aggregate grant price equals the purchase price of the exercised antecedent award and any related tax withholdings. The grant price per Share of the Reload Option shall be the Fair Market Value per Share at the time of grant. The
duration of a Reload Option shall not extend beyond the expiration date of the antecedent award. No Options with a reload feature can be granted under the Plan in 2004 or anytime thereafter. Options and Reload Options granted under the Prior Plan or
predecessor plan in 2002, or prior thereto, will be eligible for grant of a 

  

 8 

 
Reload Option only once on and after January 1, 2004, which grant of a Reload Option must occur anytime prior to the expiration of the antecedent award.
For Original Options granted under the Prior Plan in 2003, only that portion of the grant that vests in 2004 will be eligible for grant of only one Reload Option, which grant must occur on or before December 31, 2004. 
  
 (f) Transferability of Options. Notwithstanding the provisions of
Section 14(a) of the Plan, at the discretion of the Committee and in accordance with rules it establishes from time to time, Participants may be permitted to transfer some or all of their Options to one or more “family members” as
such term is defined in Form S-8 (or any successor form) promulgated under the Securities Act of 1933, as amended. 
  
 SECTION 7. STOCK APPRECIATION RIGHTS. Stock Appreciation Rights may be granted hereunder to Participants either alone or in addition to other
Awards granted under the Plan and may, but need not, relate to a specific Option granted under Section 6. The provisions of Stock Appreciation Rights need not be the same with respect to each recipient. Any Stock Appreciation Right related to
an Option may be granted at the same time such Option is granted or at any time thereafter before exercise or expiration of such Option. In the case of any Stock Appreciation Right related to any Option, the Stock Appreciation Right or applicable
portion thereof shall terminate and no longer be exercisable upon the termination or exercise of the related Option, except that a Stock Appreciation Right granted with respect to less than the full number of Shares covered by a related Option shall
not be reduced until the exercise or termination of the related Option exceeds the number of Shares not covered by the Stock Appreciation Right. Any Option related to any Stock Appreciation Right shall no longer be exercisable to the extent the
related Stock Appreciation Right has been exercised. The Committee may impose such conditions or restrictions on the exercise of any Stock Appreciation Right as it shall deem appropriate. 
  
 SECTION 8. CONTINGENT STOCK 
  

(a) Issuance. A Contingent Stock Award shall be subject to contingencies or restrictions imposed by the Committee during a period of time
specified by the Committee (the “Contingency Period”). Contingent Stock Awards may be issued hereunder to Participants, for no cash consideration or for such minimum consideration as may be required by applicable law, either alone or in
addition to other Awards granted under the Plan. The provisions of Contingent Stock Awards need not be the same with respect to each recipient. 
  
 (b) Registration. Any Contingent Stock issued hereunder may be evidenced in such manner as the Committee in its sole discretion shall deem
appropriate, including, without limitation, book-entry registration or issuance of a stock certificate or certificates. In the event any stock certificate is issued in respect of shares of Contingent Stock awarded under the Plan, such certificate
shall be registered in the name of the Participant and shall bear an appropriate legend referring to the terms, conditions, contingencies and restrictions applicable to such Award. 
  

  9 

 (c) Forfeiture. Except as otherwise determined by the Committee at the time of grant or
thereafter, upon termination of employment for any reason during the Contingency Period, all Shares of Contingent Stock still subject to any contingency or restriction shall be forfeited by the Participant and reacquired by the Company.
Noncontingent Shares, evidenced in such manner as the Committee shall deem appropriate, shall be issued to the Participant promptly after the Contingency Period, as determined or modified by the Committee, shall expire. 
  
 (d) Minimum Vesting Condition. The minimum Contingency Period
applicable to any Contingent Stock Award that is not subject to performance conditions restricting transfer shall be three (3) years from the date of grant; provided, however, that a Contingency Period of less than three
(3) years may be approved for such Awards with respect to up to 200,000 Shares under the Plan. 
  
 SECTION 9. PERFORMANCE AWARDS. Performance Awards may be granted hereunder to Participants, for no cash consideration or for such minimum
consideration as may be required by applicable law, either alone or in addition to other Awards granted under the Plan. The performance criteria to be achieved during any Performance Period and the length of the Performance Period shall be
determined by the Committee upon the grant of each Performance Award. Except as provided in Section 11, Performance Awards will be paid only after the end of the relevant Performance Period. Performance Awards may be paid in cash, Shares, other
property or any combination thereof in the sole discretion of the Committee at the time of payment. The performance levels to be achieved for each Performance Period and the amount of the Award to be paid shall be conclusively determined by the
Committee. Performance Awards may be paid in a lump sum or in installments following the close of the Performance Period or, in accordance with procedures established by the Committee, on a deferred basis. 
  
 SECTION 10. OTHER STOCK UNIT AWARDS. 
  
 (a) Other Awards of Shares and other Awards that are valued in whole or in
part by reference to, or are otherwise based on, Shares or other property (“Other Stock Unit Awards”) may be granted hereunder to Participants, either alone or in addition to other Awards granted under the Plan. Other Stock Unit Awards may
be paid in Shares, cash or any other form of property as the Committee shall determine. Subject to the provisions of the Plan, the Committee shall have sole and complete authority to determine the Employees of the Company and its Subsidiaries to
whom, and the time or times at which, such Awards shall be made, the number of Shares to be granted pursuant to such Awards and all other conditions of the Awards. The provisions of Other Stock Unit Awards need not be the same with respect to each
recipient. 
  
 (b) Subject to the provisions of this Plan and any
applicable Award Agreement, Awards and Shares subject to Awards granted under this Section 10, may not be sold, assigned, transferred, pledged or otherwise encumbered prior to the date on which the Shares are issued, or, if later, the date on
which any applicable contingency, restriction, performance or deferral period lapses. For any Award or Shares subject to any Award granted under this Section 10 the transferability of which is conditioned only on the passage of time, such
restriction period shall be a minimum of three (3) years. Shares (including securities convertible into Shares) subject to 

  

  10 

 
Awards granted under this Section 10 may be issued for no cash consideration or for such minimum consideration as may be required by applicable law.
Shares (including securities convertible into Shares) purchased pursuant to a purchase right granted under this Section 10 thereafter shall be purchased for such consideration as the Committee shall in its sole discretion determine, which shall
not be less than the Fair Market Value of such Shares or other securities as of the date such purchase right is granted. 
  
 SECTION 11. CHANGE IN CONTROL PROVISIONS. 
  
 (a) Impact of Event. Notwithstanding any other provision of the Plan to the contrary, unless the Committee shall determine otherwise at the time of
grant with respect to a particular Award, in the event of a Change in Control: 
  
 (i) any Options and Stock Appreciation Rights outstanding as of the date such Change in Control is determined to have occurred, and which
are not then exercisable and vested, shall become fully exercisable and vested to the full extent of the original grant; 
  
 (ii) the contingencies, restrictions and deferral limitations applicable to any Contingent Stock shall lapse, and such Contingent Stock
shall become free of all contingencies, restrictions and limitations and become fully vested and transferable to the full extent of the original grant; 
  
 (iii) all Performance Awards shall be considered to be earned and payable at the target amount of Shares covered by the Award, to the
extent that the Change in Control occurs during the Performance Period, or at the calculated award level, to the extent that the Change in Control occurs after the Performance Period, and shall be immediately settled or distributed. Any deferral,
contingency or other restriction applicable to such Performance Awards shall lapse; and 
  
 (iv) the contingencies, restrictions and deferral limitations and other conditions applicable to any Other Stock Unit Awards or any other
Awards shall lapse, and such Other Stock Unit Awards or such other Awards shall become free of all contingencies, restrictions, limitations or conditions and become fully vested and transferable to the full extent of the original grant; and

  
 (v) the restrictions applicable to any Shares
received in connection with the grant of a Reload Option shall lapse and such Shares shall be freely and fully transferable. 
  
 (b) Change In Control Settlement. Notwithstanding any other provision of the Plan, during the 60-day period from and after a Change in Control (the
“Change in Control Election Period”), a Participant holding an Option or Stock Appreciation Right shall have the right, whether or not the Option or Stock Appreciation Right is fully exercisable and in lieu of the payment of the purchase
price for the Shares being purchased under the Option or Stock Appreciation Right and by giving notice to the Company, to elect (within the Change in Control Election Period) to surrender all or part of the Option or Stock Appreciation Right to the

  

  11 

 
Company and to receive cash, within 30 days of such notice, in an amount equal to the amount by which the Change in Control Price per Share on the date of
such election shall exceed the purchase price per Share under the Option or Stock Appreciation Right multiplied by the number of Shares granted under the Option or Stock Appreciation right as to which the right granted under this Section 11(b)
shall have been exercised. 
  
 (c) Other Forms of
Settlement. The foregoing provisions of this Section 11 shall not preclude other forms of settlement of outstanding Awards in the event of a Change in Control, including a conversion or exchange of Awards for awards or securities of any
person that is a party to or initiates the Change in Control transaction; provided that no Participant shall be required to accept any such substituted or exchanged award or security without such Participant’s written consent.

  
 SECTION 12. CODE SECTION 162(m) PROVISIONS. 

 
 (a) Notwithstanding any other provision of this Plan, if the Committee
determines at the time Contingent Stock, a Performance Award or an Other Stock Unit Award is granted to a Participant that such Participant is, or is likely to be as of the end of the tax year in which the Company would claim a tax deduction in
connection with such Award, a Covered Employee, then the Committee may provide that this Section 12 is applicable to such Award. 
  
 (b) If an Award is subject to this Section 12, then the lapsing of contingencies or restrictions thereon and the distribution of cash, Shares or
other property pursuant thereto, as applicable, shall be subject to the achievement by the Company or any Subsidiary, or any division or business unit thereof, as appropriate, of one or more objective performance goals established by the Committee,
which shall be based on the attainment of specified levels of one or any combination of the following: cumulative net income or cumulative net income per share during the performance period; return on sales; return on assets; return on capital;
return on shareholders’ equity; cash flow; economic value added; cumulative operating income; total shareholders’ return; cost reductions; or achievement of environment, health & safety goals of the Company or the Subsidiary or
business unit of the Company for or within which the Participant is primarily employed. Performance goals may be based upon the attainment of specified levels of Company, Subsidiary or unit performance under one or more of the measures described
above relative to the performance of other comparator companies or groups of companies, and may include a threshold level of performance below which no Award will be earned, levels of performance at which an Award will become partially earned, and a
level of performance at which an Award will be fully earned. Performance goals shall be set by the Committee within the time period prescribed by, and shall otherwise comply with, the requirements of Section 162(m) of the Code, or any successor
provision thereto, and the regulations thereunder. 
  
 (c)
Notwithstanding any provision of this Plan other than Section 11, with respect to any Award that is subject to this Section 12, the Committee may adjust downwards, but not upwards, the amount payable pursuant to such Award, and the
Committee may not waive the achievement of the applicable performance goals. 
  

  12 

 (d) The Committee shall have the power to impose such other restrictions on Awards subject to this
Section 12 as it may deem necessary or appropriate to ensure that such Awards satisfy all requirements for “performance-based compensation” within the meaning of Section 162(m)(4)(C) of the Code, or any successor provision
thereto. 
  
 (e) Notwithstanding any provision of this Plan other
than Section 4(g), no Participant may be granted Options and/or Stock Appreciation Rights in any calendar year with respect to more than two million (2,000,000) Shares, or Contingent Stock Awards or Performance Share Awards covering more
than 300,000 Shares. The maximum dollar value payable with respect to Performance Units and/or Other Stock Unit Awards that are valued with reference to property other than Shares and granted to any Participant in any one calendar year is
$2,000,000. 
  
 SECTION 13. AMENDMENTS AND TERMINATION. The
Board may amend, alter, suspend, discontinue or terminate the Plan or any portion thereof at any time; provided that no such amendment, alteration, suspension, discontinuation or termination shall be made without (i) shareholder approval
if: (x) such approval is necessary to qualify for or comply with any tax or regulatory requirement for which or with which the Board deems it necessary or desirable to qualify or comply; or (y) a proposed amendment or alteration would
materially increase the benefits accruing to Participants, materially increase the maximum number of shares which may be issued under the Plan or materially modify the Plan’s eligibility requirements: or (ii) the consent of the affected
Participant, if such action would impair the rights of such Participant under any outstanding Award. Notwithstanding anything to the contrary herein, the Committee may amend the Plan in such manner as may be necessary so as to have the Plan conform
to local rules and regulations in any jurisdiction outside the United States. 
  
 The Committee may amend the terms of any Award theretofore granted, prospectively or retroactively, but no such amendment shall impair the rights of any Participant without his or her consent. Notwithstanding any
provision of this Plan, the Committee may not amend the terms of any Option to reduce the option price, nor amend the terms of any Contingent Stock Award or Other Stock Unit Award to reduce the minimum vesting period specified therein. 

 
 SECTION 14. GENERAL PROVISIONS. 
  
 (a) Nontransferability of Awards. Unless the Committee determines
otherwise at the time the Award is granted or thereafter, and except for transfers of Options permitted by Section 6(f) of the Plan: (i) no Award, and no Shares subject to Awards described in Section 10 that have not been issued, or
as to which any applicable contingency, restriction, performance or deferral period has not lapsed, may be sold, assigned, transferred, pledged or otherwise encumbered, except by will or by the laws of descent and distribution; provided that,
if so determined by the Committee, a Participant may, in the manner established by the Committee, designate a beneficiary to exercise the rights of the Participant with respect to any Award upon the death of the Participant, and (ii) each Award
shall be exercisable, during the Participant’s lifetime, only by the Participant or, if permissible under applicable law, by the Participant’s guardian or legal representative. 
  

  13 

 (b) Award Term. Except to the extent already established in Section 6 (b), the term of each
Award shall be for such period of months or years from the date of its grant as may be determined by the Committee. 
  
 (c) Award Entitlement. No Employee or Participant shall have any claim to be granted any Award under the Plan and there is no obligation for
uniformity of treatment of Employees or Participants under the Plan. 
  
 (d) Terms and Conditions of Award. The prospective recipient of any Award under the Plan shall be deemed to have become a Participant subject to all the applicable terms and conditions of the Award upon the grant of the Award to the
prospective recipient, unless the prospective recipient notifies the Company within 30 days of the grant that the prospective recipient does not accept the Award. 
  
 (e) Award Adjustments. Except as provided in Section 12, the Committee shall be authorized to make adjustments
in Performance Award criteria or in the terms and conditions of other Awards in recognition of unusual or nonrecurring events affecting the Company or its financial statements or changes in applicable laws, regulations or accounting principles. The
Committee may correct any defect, supply any omission or reconcile any inconsistency in the Plan or any Award in the manner and to the extent it shall deem desirable to carry it into effect. 
  
 (f) Committee Right to Cancel. The Committee shall have full power and
authority to determine whether, to what extent and under what circumstances any Award shall be canceled or suspended. In particular, but without limitation, all outstanding Awards to any Participant shall be canceled if the Participant, without the
consent of the Committee, while employed by the Company or after termination of such employment, becomes associated with, employed by, renders services to or owns any interest in (other than any nonsubstantial interest, as determined by the
Committee) any business that is in competition with the Company or with any business in which the Company has a substantial interest as determined by the Committee or otherwise takes any action that in the judgment of the Committee is not in the
best interests of the Company. 
  
 (g) Stock Certificate
Legends. All certificates for Shares delivered under the Plan pursuant to any Award shall be subject to such stock transfer orders and other restrictions as the Committee may deem advisable under the rules, regulations, and other requirements of
the Securities and Exchange Commission, any stock exchange upon which the Shares are then listed and any applicable Federal or state securities law, and the Committee may cause a legend or legends to be put on any such certificates to make
appropriate reference to such restrictions. 
  
 (h) Compliance
with Securities Laws. No Award granted hereunder shall be construed as an offer to sell securities of the Company, and no such offer shall be outstanding, unless and until the Committee in its sole discretion has determined that any such offer,
if made, would be in compliance with all applicable requirements of the U.S. Federal securities laws and any other laws to which such offer, if made, would be subject. 
  

  14 

 (i) Award Deferrals; Dividends. The Committee shall be authorized to establish procedures pursuant
to which the payment of any Award may be deferred. Subject to the provisions of the Plan and any Award Agreement, the recipient of an Award (including, without limitation, any deferred Award) may, if so determined by the Committee, be entitled to
receive, currently or on a deferred basis, cash dividends, or cash payments in amounts equivalent to cash dividends on Shares (“Dividend Equivalents”), with respect to the number of Shares covered by the Award, as determined by the
Committee, in its sole discretion, and the Committee may provide that such amounts (if any) shall be deemed to have been reinvested in additional Shares or otherwise reinvested. 
  
 (j) Consideration for Awards. Except as otherwise required in any applicable Award Agreement or by the terms of the
Plan, recipients of Awards under the Plan shall not be required to make any payment or provide consideration other than the rendering of services. 
  
 (k) Delegation of Authority by Committee. The Committee may delegate to one or more executive officers (as that term is defined in Rule 3b-7 under
the Exchange Act) or a committee of executive officers the right to grant Awards to Employees who are not executive officers or directors of the Company and to cancel or suspend Awards to Employees who are not executive officers or directors of the
Company. 
  
 (l) Withholding Taxes. The Company shall be
authorized to withhold from any Award granted or payment due under the Plan the amount of withholding taxes due in respect of an Award or payment hereunder and to take such other action as may be necessary in the opinion of the Company to satisfy
all obligations for the payment of such taxes. The Committee shall be authorized to establish procedures for election by Participants to satisfy such obligations for the payment of such taxes by delivery of or transfer of Shares to the Company or by
directing the Company to retain Shares otherwise deliverable in connection with the Award. 
  
 (m) Other Compensatory Arrangements. Nothing contained in this Plan shall prevent the Board from adopting other or additional compensation arrangements, subject to shareholder approval if such approval is
required; and such arrangements may be either generally applicable or applicable only in specific cases. 
  
 (n) Governing Law. The validity, construction, and effect of the Plan and any rules and regulations relating to the Plan shall be determined in
accordance with the laws of the Commonwealth of Pennsylvania and applicable Federal law. 
  
 (o) Severability. If any provision of this Plan is or becomes or is deemed invalid, illegal or unenforceable in any jurisdiction, or would disqualify the Plan or any Award under any law deemed applicable by the
Committee, such provision shall be construed or deemed amended to conform to applicable laws or if it cannot be construed or deemed amended without, in the determination of the Committee, materially altering the intent of the Plan, it shall be
stricken and the remainder of the Plan shall remain in full force and effect. 
  

  15 

 (p) Awards to NonU.S. Employees. Awards may be granted to Employees who are foreign nationals or
employed outside the United States, or both, on such terms and conditions different from those applicable to Awards to Employees employed in the United States as may, in the judgment of the Committee, be necessary or desirable in order to recognize
differences in local law or tax policy. The Committee also may impose conditions on the exercise or vesting of Awards in order to minimize the Company’s obligation with respect to tax equalization for Employees on assignments outside their home
countries. 
  
 (q) Repricing Prohibited. The repricing of
Options or Stock Appreciation Right Awards under the Plan is expressly prohibited. “Repricing” means the grant of a new Option, Stock Appreciation Right or other Award in consideration of the exchange, cancellation or forfeiture of an
Award that has a higher grant price than the new Award or the amendment of an outstanding Award to reduce the grant price; provided, that the grant of a Substitute Award shall not be considered to be repricing. 
  
 SECTION 15. TERM OF PLAN. The Plan shall be effective as of
May 1, 2004. No Award shall be granted pursuant to the Plan after April 30,2009, but any Award theretofore granted may extend beyond that date. 
  
 SECTION 16. TERMINATION OF PRIOR PLAN. No stock options or other awards may be granted under the Prior Plan or any predecessor plan after
April 30, 2004, but all such awards theretofore granted shall extend for the full stated terms thereof and be administered under this Plan. 
  

  16

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