Document:

Global Expatriate Employee Policy

 Exhibit 10(uu) 
 EXPATRIATE ORIENTATION MANUAL 
  

 This book is the property of 
 Alcoa Inc. 
 The information contained herein 
 is
confidential and is not to be 
 disclosed or copied without the 
 express written permission of the 
 Expatriate Administration Group, Alcoa Inc. 
  

 Alcoa Inc. 
 201 Isabella Street 
 Pittsburgh, PA
15212-5858 

 EXPATRIATE ORIENTATION MANUAL 
 OVERSEAS ASSIGNMENT 
 TABLE OF CONTENTS 
  

			
	 FOREWORD
	  	6
	 EXPATRIATE PRINCIPLES 2002
	  	7
	 ORIENTATION
	  	8
	 INTERNATIONAL ASSIGNMENT CONTACT LIST
	  	9
	 AUTOMOBILE
	  	10
	 Automobile Policy
	  	10
	 Reimbursement For Loss On Sale Of Automobile (Forced Sale)
	  	10
	 Exchange Rate Loss Calculation
	  	12
	 Option I – Interest Free Loan
	  	16
	 · Re-Establishing An Interest-Free
Loan
	  	17
	 Option II - Equity Assistance: Automobile(s) Purchased In The Host Country
	  	20
	 · Re-Establishing An Equity
Agreement
	  	20
	 · Repayment Of Equity
	  	21
	 Option III - Equity Assistance: Shipment Of An Automobile(s) From Home Country
	  	24
	 · Re-Establishing An Equity
Agreement
	  	24
	 · Repayment Of Equity
	  	25
	 Exceptions To Automobile Policy
	  	28
	 · Rental Of Automobile
	  	29
	 · Short-Term Assignments
	  	29
	 · Storage Of Automobiles
	  	29
	 · International Driver’s
License
	  	30
	 BENEFIT PLANS
	  	31
	 Qualification – Dependents
	  	31
	 Alcoa Foundation Sons & Daughters Scholarship Program–Section M
	  	32
	 Alcoa Savings Plan For Salaried Employees
	  	32
	 · Non-U.S. Citizen
	  	32
	 · Citizen
	  	32
	 Claims Outside The United States
	  	37
	 COMPENSATION OVERVIEW
	  	43
	 Monthly Allowances/Deductions
	  	44
	 · Dependent Status
	  	44
	 · Base Salary
	  	44
	 · 401K
	  	44
	 · Savings Differential
Allowance
	  	44
	 · Deferred Compensation
Deduction
	  	45
	 · Incentive Compensation
Allowance
	  	45
	 · Foreign Service Premium (FSP)
Allowance
	  	45
	 · Hardship Pay Allowance
	  	45
	 · Hypothetical U.S. Tax
Deduction
	  	46

  

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	 · Calculated U.S. Housing Obligation
Deduction
	  	46
	 · Cost-of-Living
Allowance
	  	47
	 · Obtaining Host Location
Currency
	  	49
	 CULTURAL ORIENTATION PROGRAM
	  	50
	 EDUCATION ALLOWANCE FOR DEPENDENTS
	  	51
	 Allowable Expenses
	  	51
	 Qualification—Dependents
	  	51
	 Education Allowances
	  	51
	 · Pre-Schooling
	  	51
	 · Kindergarten/Grammar/High
School—Host Location
	  	52
	 · Grammar/High School—Home Country
Location
	  	52
	 · Grammar High School—Other Than
Host/Home Location
	  	53
	 Tutoring/Additional Courses
	  	53
	 College Students
	  	54
	 Reimbursement Of Expenses
	  	55
	 EMERGENCY/SECURITY PLANNING
	  	56
	 Emergency Planning
	  	56
	 · Emergency Planning At Overseas
Location
	  	56
	 · Evacuation Or Emergency
Phasedown
	  	57
	 Personal Emergencies
	  	58
	 · Death Of Expatriate Or Dependent
Overseas
	  	58
	 · Reporting A Death
Abroad
	  	58
	 · Death Or Illness Of Family
Member
	  	59
	 Security Planning
	  	59
	 Where To Go For Help In Alcoa
	  	62
	 HOUSING
	  	63
	 Employee Leased Housing
	  	63
	 Company-Owned Housing
	  	63
	 Sale Of Principal Residence
	  	64
	 Employee-Owned Housing
	  	64
	 Lease Management Program
	  	64
	 Optional Home Rental Plan
	  	64
	 Dual-Housing Exception
	  	65
	 Utilities/Maintenance Costs On Host Property
	  	65
	 Domestic Help
	  	66
	 HOUSEHOLD PACKING, SHIPPING AND STORAGE
	  	67
	 Baggage Allowance
	  	67
	 Definition Of Terms
	  	67
	 Preliminary Survey
	  	68
	 Limitations On Items Shipped
	  	69
	 · Personal Effects
Shipment
	  	69
	 · Basic Furniture And Household
Furnishings Shipment
	  	69
	 · Appliances/Electronics
Shipment
	  	70
	 Storage
	  	70
	 Valued Inventory List
	  	71
	 Insurance
	  	72

  

 ORIENTATION – September 1, 2002 Rev 2 
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	 Claims For Loss/Damage To Household Goods
	  	72
	 Repatriation Of Household Goods
	  	72
	 Retirement From Overseas Assignment
	  	73
	 INSURANCE
	  	73
	 Personal Property And Personal Effects
	  	73
	 Travel Insurance
	  	74
	 · Coverage Options
	  	81
	 LANGUAGE TRAINING / CULTURAL BRIEFING
	  	86
	 MAIL SERVICE
	  	87
	 MEDICAL/PSYCHOLOGICAL DATA
	  	88
	 Medical
	  	88
	 International SOS Membership
	  	89
	 Psychological
	  	92
	 Employee Assistance Program For Expatriates
	  	92
	 PASSPORTS/VISAS
	  	94
	 Passport
	  	94
	 Work Permit
	  	94
	 Visa
	  	94
	 PET POLICY
	  	95
	 Shipment Of Household Pets
	  	95
	 RELOCATION EXPENSES
	  	96
	 Expenses - Prior To Departure To The Host Location
	  	96
	 Expenses - Enroute To The Host Location
	  	98
	 Expenses - Upon Arrival At The Host Location
	  	98
	 Expenses - Prior To Departure From Host Location
	  	100
	 Expenses Enroute To And After Arrival In Home Country
	  	100
	 Retirement From An Overseas Assignment
	  	101
	 Non-Reimbursable Expenses
	  	102
	 Expenses - Procedures For Completing Moving Expense Statement
	  	104
	 TAXES
	  	109
	 Personal Income Tax
	  	109
	 Tax Return Preparation (U.S. And Host Country)
	  	109
	 Tax Equalization
	  	110
	 Expatriate Expenses
	  	111
	 U.S. State Tax Treatment
	  	112
	 Capital Gains Tax
	  	112
	 From Sale Of Principal Residence
	  	112
	 Tax Service
	  	112
	 Cost Of Tax Preparation Service
	  	113
	 Personal Investments
	  	113
	 Tax Forms Claiming Foreign Residency
	  	113
	 · Bona Fide Residence
Test
	  	114
	 · Physical Presence Test
	  	114
	 Tax Payback Promissory Note
	  	115
	 VACATION HOME LEAVE ALLOWANCE
	  	116
	 Allowance
	  	116

  

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	 Point Of Origin
	  	116
	 Other Information
	  	117
	 Vacation Time
	  	117
	 REMINDERS
	  	118
	 Preparing For Your Move
	  	118
	 On Arrival At The Host Location
	  	119

  

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 FOREWORD 
 The policies contained in this manual are the only official statements of policies and practices governing expatriate personnel administration and shall be the only governing authority in questions of policy interpretation and policy
application. 
 We feel the policies outlined in this manual are those we have found effective and necessary in meeting competitive
practices, in ensuring uniform treatment of employees, and in facilitating transfers between home and host locations. Transfers within a region will fall under specific regional policies. 
 For the purposes of this manual, a Global Expatriate is any employee, regardless of nationality, who at the volition of the Company, is transferred for an indefinite
period of time from a work assignment in one country to a work assignment in another country, and paid from a U.S. payroll. 
 If there are any questions
concerning the policies outlined in this manual, please contact your Prudential International Assignment Manager (IAM). 
 PRUDENTIAL
RELOCATION INTERNATIONAL 
 Attn: Sako Nishida 
 16260 North 71st Street, Suite 350 
 Scottsdale, Arizona 85254 
 Phone
480-778-6596 
 Fax 480-778-7096 
  

 ORIENTATION – September 1, 2002 Rev 2 
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 EXPATRIATE PRINCIPLES 2002 
  

			
	ALCOA IS A VALUES BASED GLOBAL COMPANY
		
	INTEGRITY	  	Alcoa’s foundation is our integrity. We are open, honest and trustworthy in dealing with customers, suppliers, coworkers, shareholders and the communities where we have an
impact.
		
	EHS	  	We work safely in a manner that protects and promotes the health and well being of the individual and the environment.
		
	CUSTOMER	  	We support our customers success by creating exceptional value through innovative product and service solutions.
		
	EXCELLENCE	  	We relentlessly pursue excellence in everything we do, every day.
		
	PEOPLE	  	We work in an inclusive environment that embraces change, new ideas, respect for the individual and equal opportunity to succeed.
		
	PROFITABILITY	  	We earn sustainable financial results that enable profitable growth and superior shareholder value.
		
	ACCOUNTABILITY	  	We are accountable – individually and in teams – for our behaviors, actions and results

 WE LIVE OUR VALUES &
MEASURE OUR SUCCESS BY THE 
 PEOPLE 
  

	 	•	 	We treat each other with dignity and respect at all times 

  

	 	•	 	We seek to understand each others ideas and suggestions 

  

	 	•	 	We value diversity and our individual differences 

  

	 	•	 	We create and seize opportunities for growth and development 

  

	 	•	 	We seek and accelerate change 

  

	 	•	 	We continuously re-design our work to eliminate waste and improve the value of our work 

  

	 	•	 	We provide appreciative and constructive feedback to each other to improve our individual and team performance 

  

	 	•	 	We create the appropriate balance in our work and family lives 

  

	 	•	 	We create value in the community in which we live and work, through our presence and leadership 

  

 ORIENTATION – September 1, 2002 Rev 2 
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 ORIENTATION 
 When an employee has been selected as a possible candidate for an overseas assignment, an International Assignment Manager from Prudential Relocation will contact both the employee and spouse to complete an orientation process that includes
an in-depth needs assessment, review of the international compensation package, relocation process and timeline. 
 In addition to the orientation program,
in order to make a joint commitment to the relocation of the family, Alcoa strongly endorses the practice of the expatriate and spouse visiting the host location they are considering to relocate. On this trip the expatriate & spouse will
SELECT A SCHOOL (IF APPLICABLE) AND HOUSING. Only one such trip will be allowed for the expatriate and spouse. 
 Each candidate is made to understand that
the job offer and assignment location visit is contingent upon the successful passing of a medical examination TO DETERMINE FITNESS FOR DUTY/RELOCATION prior to THE ACTUAL TRANSFER. 
 Prior to actual transfer, each additional dependent who transfers SHOULD also complete a medical examination. ARRANGEMENTS FOR DEPENDENT PHYSICAL EXAMS SHOULD BE MADE THROUGH THE CHILDRENS OR FAMILY PHYSICIAN IN THE
HOME COUNTRY. The Company will reimburse the employee for all expenses incurred for these medical examinations and necessary vaccinations or inoculations. 
 In addition to the medical examination, an informal interview will be conducted by a Counselor from SAIC, the Company’s Overseas Assistance provider. The purpose of this interview is to further explore the employee and spouse’s
feelings about the assignment, IDENTIFY ANY ISSUES/CONCERNS AND PROVIDE ON-GOING ASSISTANCE THROUGH THEIR PROVIDERS AT THE HOST LOCATION. Employees living outside the U.S. being considered for a GLOBAL ASSIGNMENT for transfer from one global
location to another will be scheduled through the interview process. 
 The International Assignment Manager from Prudential Relocation International in
Scottsdale, Arizona is responsible for planning and coordinating the orientation and entire relocation process. 
  

 ORIENTATION – September 1, 2002 Rev 2 
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 INTERNATIONAL ASSIGNMENT CONTACT LIST 
 Below is a list of resources available to you throughout your assignment. 
  

					
	Employee Benefits InfoLine	 		 	1-800-433-9906 or 412-544-0169
	(9:00a.m. - 9:00p.m. Mon. through Sat. - Eastern Time) – Representative is available
	(8:00 a.m – 2:00 a.m. Mon. through Sat. - Eastern Time) – Automated Service available
			
	 SAIC (Overseas Assistance Program)
 Carol
Lepere
	 		 	 Phone: 703-676-2314
 carol.a.lepere@cpmx.saic.com

			
	 PRUDENTIAL GROUP/SERVICE
CONTACTS
	 	 CONTACT NAME
	 	 CONTACT DETAILS

			
	Prudential Relocation, Int’l Assignment Manager (IAM). Main point of coordination for all assignment-related processes	 	Sako Nishida	 	 Phone: 480-778-6595
 sako.nishida@prudential.com
 vmx no. 211-6595

			
		 	Susan Barlow	 	 Phone: 480-778-6594
 susan.barlow@prudential.com
 vmx no. 211-6594
 Mailing Address (for both):
 Prudential Relocation International
 16260 N. 71st Street, Suite 350
 Scottsdale, Arizona 85254
 Fax: 480-778-7096

			
	 Prudential Relocation, Cost Management
 (For submission
of relocation expenses only, please direct all related correspondence to your Int’l Assignment Manager)
	 	Alcoa Cost Management Team	 	 Fax: 480-778-7027
 Mailing
Address:
 Prudential Relocation International
 Attn:
Michelle Matteson
 c/o of Alcoa Corporate Center
 Pittsburgh

			
	 ALCOA CONTACTS
	 	 CONTACT NAME
	 	 CONTACT DETAILS

			
	Alcoa, Expatriate Administration	 	Linda Hepp	 	 Phone: 412-553-4825
 Fax: 412-553-4929
 linda.hepp@alcoa.com

			
		 	Lynn Nelson	 	 Phone: 412-553-2248
 Fax: 412-553-4929
 lynn.nelson@alcoa.com

			
	Alcoa, Employee Benefits	 	Karen Collette	 	 Phone: 412-553-3451
 Fax:
412-553-4916

			
		 	Main Office	 	Phone: 412-553-4545
			
	Alcoa Medical Dept., Pittsburgh Headquarters	 		 	Phone: 412-553-4520
			
	Alcoa, Corporate Security	 	Jay Zelezniak	 	 Phone: 412-553-4166
 Fax: 412-553-3133
 jay.zelezniak@alcoa.com

			
	Alcoa, Pittsburgh Federal Credit Union (Banking)	 	Lisa Balcer	 	 Phone: 412-553-2842
 Fax: 412-553-2464
 Four North Shore Center
 106 Isabella Street, 5th Floor
 Pittsburgh, Pennsylvania
15212

			
	Alcoa Mail Service Center, Pittsburgh Headquarters	 	Marshall McKeag	 	Phone: 412-553-4699

  

 ORIENTATION – September 1, 2002 Rev 2 
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 AUTOMOBILE 
 AUTOMOBILE POLICY 
 Our policy offers one of
three options to those expatriates on long-term assignment (18 months or more) for up to two (2) personal automobiles: 
  

	 	•	 	A four-year, interest-free loan arrangement. 

  

	 	•	 	Equity agreement for automobiles purchased in the host country. 

  

	 	•	 	Equity agreement for automobiles shipped from the home country. 

 In
addition to the above options, the expatriate will be eligible for reimbursement of the forced sale loss at the beginning and termination of the host assignment on up to two personally owned (2) automobiles. 
 Where transportation is necessary for a combination of business and personal reasons, the host location manager may consider renting, leasing or purchasing an automobile
for the expatriate. The circumstances to support this departure from policy must be reviewed with the business unit president before any commitment is made to the expatriate or any action is taken. 
 REIMBURSEMENT FOR LOSS ON SALE OF AUTOMOBILE (FORCED SALE) 
 If an
expatriate disposes of his/her automobile(s) prior to departure, Alcoa will reimburse the difference, up to a specified maximum, between the average retail value and the amount for which the automobile(s) was sold. 
  

	 	1.	The average retail value will be the one published in the National Automobile Dealers Association (N.A.D.A.) “Official Used Automobile Guide,” for the region in which the
automobile(s) was sold in the U.S., or the official used automobile guide in the home country. The maximum payment shall be limited to 20% of the total retail value. These are the sole publications used for pricing automobiles. If there is no
official used automobile price publication available, you should work with the local HR management to establish the fair market value of the automobile. 

  

	 	2.	Current year model automobiles will be depreciated at 1% per month of the original purchase price for up to the first 12 months of the automobile’s life.

  

	 	3.	For automobile(s) sold at the termination of a host assignment, the average retail value will be determined in the same manner as No. 1 above with the exception that the retail
value will be determined by using information available at the host location. 

  

	 	4.	 The forced sale payment arrangement will apply to a maximum of two (2) automobiles prior to, and at the completion of, a host assignment. Forced sale 

  

 ORIENTATION – September 1, 2002 Rev 2 
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reimbursement will not be approved for any other type of automobiles such as motorcycles, trailers or campers. 

  

	 	5.	Reimbursement will be made the month following receipt of “Automobile Forced Sale Reimbursement” (Sample Exhibit 1) and included in the regular monthly paycheck. Please
complete the forms included in this section for a forced sale reimbursement. Please submit the U.S. dollar equivalent as of the date of sale. All pertinent information relating to the value of the automobile should have an English translation to be
processed by the Prudential Relocation International in Scottsdale, Arizona. 

 LEASE AUTOMOBILE BUY-OUT 
 If at the time of acceptance of a transfer to an global location, the Expatriate is in possession of a personally-leased automobile, the Company will provide lease
buy-out assistance as follows: Expatriate should obtain the penalty amount for early termination of the lease agreement and the lease buy-out amount in writing from the automobile dealership. Alcoa will then determine the most
economical approach for the company to assist in the disposition of that automobile and advise the Expatriate. 
 If it is determined that a lease buy-out is
the most economical way to dispose of the automobile, Alcoa will advance a short-term loan to the Expatriate to buy out the lease on the automobile. Expatriate will be required to sign a promissory note in the amount of the buy-out. The signed and
dated note must be in our possession before funds can be advanced. Once all paperwork is in place, Prudential Relocation International will request an electronic funds transfer to your U.S. bank account. 
 When the buy-out transaction is complete and the Expatriate obtains title to the automobile, the Expatriate can then sell the automobile for up to 20% less than the
retail value and obtain the Reimbursement for Loss on Sale of Automobile (Forced Sale) as outlined beginning on page 1.1 of this section. The retail value will be either the established buy-out amount or the retail value as provided by the current
NADA Guide, or the source most commonly used in your home country, whichever is less. 
 If there is a shortfall between the selling price, and the forced
sale loss combined, then the remaining short-term loan balance will be considered closed. 
 At the time of the sale of the automobile, the advance for the
buy-out will become due and payable to the Company. Expatriate should write his/her check to Alcoa, Inc. in the amount of the short-term loan and forward to your Prudential International Assignment Manager (IAM) in Scottsdale, Arizona. 

Payment for forced sale reimbursement will be made the month following receipt of “Automobile Forced Sale Reimbursement” (Sample Exhibit 1) forms and
documentation and included in the regular monthly paycheck. Please complete the forms included in 

  

 ORIENTATION – September 1, 2002 Rev 2 
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this section for a forced sale reimbursement. Also, please submit the U.S. dollar equivalent as of the date of sale. All pertinent information will be
processed by the Prudential Relocation International in Scottsdale, Arizona. 
 If it is determined that paying a penalty for early termination is the
most economical method of disposing of the leased automobile, the Expatriate will submit a Moving Expense Statement Form detailing the early termination penalty fee. A letter from the automobile dealership (on their letterhead) must be attached as
proof of the penalty fee. This documentation must be sent to Prudential Expense Analyst, Michelle Matteson care of Alcoa Corporate Center, Pittsburgh for processing. 
 EXCHANGE RATE LOSS CALCULATION 
 As stated above, upon repatriation or termination, the Company will assist with the
sale of up to two personally owned automobiles in the form of a forced sale loss. Sometimes the expatriate will experience a loss due to an exchange rate difference. That is, the exchange rate at the time of purchase was more favorable than the
exchange rate at the time of sale of the automobile. In those instances where there has been a significant fluctuation in the exchange rate, the following formula will be used to calculate the exchange rate loss. 
 To calculate an exchange rate loss: 
  

	1)	Take the value received from the sale of the automobile plus the forced sale loss in the host currency. Convert this amount to U.S. dollars, using the exchange rate in effect at the
time of purchase. 

 Subtract: 
  

	2)	Take the value received on the sale of the automobile plus the forced sale loss in the host currency (same value as no. 1 above). Convert this amount to U.S. dollars, using the
exchange rate in effect at the time of sale. 

 Difference: 
  

	3)	The difference between these two numbers will give you the Exchange Rate Loss. This is what will be paid to the expatriate as an exchange rate loss. You should claim this amount
through a moving expense statement. Please attach all appropriate back up. 

  

 ORIENTATION – September 1, 2002 Rev 2 
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 EXAMPLE: 
  

				
	 Selling price of automobile
	  	J$	200,000
	 Plus forced sale loss
	  	J$	+60,000
		  	=J$	260,000
	 FX at time of purchase 36.0
	  	=US$	7,222
	 Selling price of automobile
	  	J$	200,000
	 Plus forced sale loss
	  	J$	+60,000
		  	J$	 260,000
	 FX at time of sale 40.0
	  	=US$	6,500
	 DIFFERENCE
	  	 	7,222
		  	 	- 6,500
		  	=US$	 722

 Your expense statement should be submitted for $722 as an exchange rate loss. 
 Conversely, if the situation is reversed and the exchange rate at the time of sale is more favorable than at the time of purchase, then there would be no payment made,
nor would we collect the difference. 
  

 ORIENTATION – September 1, 2002 Rev 2 
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 EXHIBIT 1 
 AUTOMOBILE FORCED SALE REIMBURSEMENT 
 Participation in the Alcoa Personal Automobile Policy guarantees up to a 20%
protection against a loss due to forced sale of an automobile. The N.A.D.A. “Official Used Car Guide” or the official publication used in the home country will be referenced in determining the retail value. Only options listed in the
guide will be used in calculating the retail value. For current year models not listed in the N.A.D.A., the retail value will be calculated by using the original purchase price less 1% per month. Please attach a copy of the original bill of
sale, title registration, or other suitable documentation to verify ownership and options listed. Attach the bill of sale dated and signed by purchaser describing this automobile and purchase price. 
  

	
	
	   
	 (Print Name)

	
	   
	 (Signature)                                     
                   (Date)

 SALE DATA 
  

							
	 Date of Sale:
	  	___________________________	  	 Selling Price:
	  	$                                    
 
		  		  	 Exchange Rate: (if applicable)
	  	 _________________

  

									
	 Odometer Reading at Date of Sale:
	  	__________________	  		  	
	 Description:
	  	Year:	  	__________________	  	No. of Doors:	  	 __________________

		  	Make:	  	__________________	  	Body Type:	  	  ̈ Sedan

		  	Model No.	  	__________________	  		  	  ̈ Hard Top

		  	Model Type:	  	__________________	  		  	  ̈ Station Wagon

		  	No. of Cylinders:	  	__________________	  		  	  ̈ Convertible

		  	Transmission:	  	 ̈ Automatic	  		  	  ̈ Coupe

		  		  	 ̈ Manual	  		  	  ̈ Other

 Options (check factory installed options): 
  

			
	 	  	Office
Use Only
	  ̈ Air Bags
	  	________
	  ̈ Theft Deterrent
System
	  	________
	  ̈ Power Windows
	  	________
	  ̈ AM/FM Stereo
	  	________
	  ̈ AM/FM Stereo w/Tape
	  	________
	  ̈ Cruise Control
	  	________
	  ̈ Rear Window
Defogger
	  	________
	  ̈ Tilt Steering Wheel
	  	________
	  ̈ Power Brakes
	  	________
	  ̈ Power Door Locks
	  	________
	  ̈ Power Seats
	  	________
	  ̈ Power Steering
	  	________
	  ̈ ABS Brakes
	  	________
	  ̈ Power Sunroof
	  	________
	  ̈ Four Wheel Drive
	  	________
	  ̈ Air Conditioning
	  	________
	  ̈ Aluminum Alloy
Wheels
	  	________
	  ̈ Leather Seats
	  	________
	  ̈ Compact Disk Player
	  	________
	 ____ ____________________
	  	________
	 ____ ____________________
	  	________
	 ____ ____________________
	  	________
	 Total Options ___________
	  	________

  

 ORIENTATION – September 1, 2002 Rev 2 
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 DO NOT COMPLETE THIS SECTION 
 (FOR OFFICE USE ONLY) 
  

			
	 High/Low Mileage (Category)
	  	 ________________________

	 Base Value
	  	 ________________________

	 Plus Options
	  	 ________________________

	 Total Retail Value
	  	 ________________________

	 Actual Selling Price
	  	 ________________________

	 Difference
	  	 ________________________

	 20% of Total Retail Value
	  	 ________________________

	 Forced Sale Payment*
	  	 ________________________

  

	*	Difference between Total Retail Value less Actual Selling Price, or limited to 20% of Total Retail Value, whichever is less. 

 PLEASE SEND COMPLETED FORM AND DOCUMENTATION TO EITHER OF THE FOLLOWING: 
  

			
	INTER-OFFICE MAIL	 	POSTAL SERVICE
	Alcoa, Inc.	 	Prudential Relocation International
	Expatriate Administration	 	Attn: Sako Nishida
	201 Isabella Street	 	16261 N. 71st Street, Suite 350
	Pittsburgh, PA 15212-5858	 	Scottsdale, AZ 85254
	Attention: Lynn Nelson	 	

 PLEASE SEND COMPLETED FORM AND DOCUMENTATION TO: 
 Prudential Relocation International 
 ATTENTION: Sako Nishida

 16260 N. 71st Street,
Suite 350 
 Scottsdale, Arizona 85254 
  

 ORIENTATION – September 1, 2002 Rev 2 
 Page 15 of 120 

 OPTION I – INTEREST FREE LOAN 
 The Company will provide an interest-free loan(s) in U.S. dollars for the purpose of purchasing up to two (2) personal automobiles at the host location. The loan will be based on reasonable and customary type
automobiles, and should be related to the difference in the equity of the individual’s present automobile(s) sold as the result of the transfer, plus any forced sale loss received from the Company and the cost of a new automobile(s), minus
sales tax, registration, and license plate fees, which are T&R expenses to be claimed via a Moving Expense Statement. Such a loan must have the approval and signature of the host location manager and your Prudential International Assignment
Manager. 
 In those locations where a Company-provided automobile is used by the expatriate, only one interest-free loan will be granted. 

The interest-free loan will be repaid through a monthly payroll deduction, the amount of which will vary depending upon the amount of the loan. The loan must be repaid
within 48 months. 
 Upon the sale of an automobile(s) for which the Company has extended an interest-free loan, or upon repatriation, termination, etc., the
expatriate must pay immediately the remaining balance of the loan in full. 
 Instructions for securing the interest-free
loan are as follows: 
  

	1.	The automobile loan request form should be completed by the expatriate requesting that the full amount of the loan to be deposited by electronic transfer to his/her U.S. bank
account. It is important that the individual list in the loan request form, the exact name and address of the individual’s bank and give the complete name or names in which the bank account is listed. The bank account number and the bank
routing number must also be given. The loan request should state the amount of payroll deduction per month, rounded up to the nearest whole dollar, which will be deducted from the expatriate’s salary in repayment of the loan.

  

	2.	The loan of request must be signed by the expatriate and must also be approved by the host location manager prior to sending your request to your Prudential International Assignment
Manager in Scottsdale, Arizona, USA. 

  

	3.	A copy of the documentation, which supports the purchase price, must be attached. 

  

	4.	The original loan request and documentation supporting the purchase price should be forwarded, under confidential cover, directly to your Prudential IAM in Scottsdale, Arizona.

  

 ORIENTATION – September 1, 2002 Rev 2 
 Page 16 of 120 

	5.	Prudential IAM will request an electronic transfer to your U.S. bank account. Prudential Expense Analyst, Michelle Matteson will fax EFT Request form to Alcoa A/P Shared Services
for payment to Expatriate. Prudential Expense Analyst, Michelle Matteson notifies Expatriate that request for payment has been forwarded to Alcoa A/P Shared Services. 

  

	6.	If an electronic transfer has been initiated to a U.S. bank, Prudential IAM will send an e-mail to the expatriate advising date funds will be available and when monthly payroll
deductions will begin. 

  

	7.	If you have requested a wire transfer to your U.S. bank account, we will transfer U.S. dollars. If you convert the U.S. dollars to the host country currency and you experience an
exchange rate loss, please submit your claim for the loss on a Moving Expense Statement with supporting documentation for reimbursement. Send the expense statement to Prudential Expense Analyst, Michelle Matteson care of Alcoa Corporate Center,
Pittsburgh for processing. Any claim for exchange rate loss concerning this transaction must be submitted within 45 days of the purchase of the automobile. Exchange rate loss reimbursements will not be processed after the 45 day time period.

  

			
	 Note:
	 	Although automobile loans, under this policy, are issued as interest free loans, by law, the government requires companies to impute as income an interest rate designated by the Internal
Revenue Service. (This will appear on your December pay stub as “MKT INT LOAN”). Please be aware that when your tax equalization is prepared by PwC, this imputed interest income will be considered a host adder and the expatriate will not
bear the burden of additional taxes due to this interest income.

 Re-Establishing An Interest-Free Loan 
 Ordinarily, an expatriate on a long-term assignment will be permitted a maximum of two (2) interest-free automobile loans during the global assignment. This option
is intended for use by the expatriate and spouse. In those locations where a company-provided automobile is used by the expatriate, only one interest-free loan will be granted. The time limitation will be waived under the following conditions:

  

	1.	After four years at the same location, an expatriate may participate in a new interest-free loan(s), if it can be reasonably expected that the global assignment will continue for an
additional two years. 

  

	2.	Upon transfer from one global location to another (other than a transfer within a region), an expatriate will be eligible to participate in a new interest-free loan(s).

  

 ORIENTATION – September 1, 2002 Rev 2 
 Page 17 of 120 

 EXHIBIT 2 
 AUTOMOBILE LOAN REQUEST FORM 
 Confidential 
  

	
	
	   
	Date

 Prudential Relocation International 
 ATTENTION: Sako Nishida 
 16260 N. 71st Street, Suite 350 
 Scottsdale, Arizona 85254 
 To Whom It May Concern: 
 Below is my
request for an automobile loan under the Alcoa Expatriate Automobile Policy. Please deposit the proceeds as follows: 
  

			
	 Bank Name:
	  	Mellon Bank
		
	Bank Address:	  	999 Liberty Avenue
		  	Attn: Customer Service
	Account Number:	  	00000000
	Bank Routing Number:	  	1234 5678 9

 This amount, calculated as follows, is to be used for the purchase of a personally owned automobile: 

 

					
	 Purchase price of automobile in
	  	$	22,000 	U.S. dollars
	 Less equity from sale of one (1)automobile (including Alcoa Forced Sale payment on the automobile sold)
	  	 	($8,000	)
	 Total Loan Requested
	  	$	14,000	 

 Alcoa is hereby authorized to make a payroll deduction of $292 per month until this loan is paid in full. (Please
round up to the next whole dollar.) Also, automobile loans should not exceed forty-eight (48) monthly payments. 
  

 ORIENTATION – September 1, 2002 Rev 2 
 Page 18 of 120 

 Page Two 
 Intending to be legally bound, I agree to repay this loan to Alcoa as provided in this request and I further agree that upon the earlier of my repatriation, termination or death, the outstanding balance shall
immediately become due and payable to Alcoa. 
  

					
	 Submitted by,
	 		 	
			
	   	 		 	         John Expatriate

	 Expatriate Signature
	 		 	 Print Expatriate Name

			
	 Date:
                                        
                    
	 		 	   
		 		 	 Expatriate Social Security Number

  

			
		
	 Approvals:    
	 	  
		 	  
		 	  

 Attachment: Documentation to Support Purchase Price 
  

 ORIENTATION – September 1, 2002 Rev 2 
 Page 19 of 120 

 OPTION II - EQUITY ASSISTANCE: AUTOMOBILE(s) PURCHASED IN THE HOST COUNTRY 
 For those employees who do not wish to utilize the interest free loan for the purchase of their automobile at the host location, but instead prefer to have the company
advance the portion of equity beyond a cost of a comparable automobile in the home country, the following qualifications and instructions for this option will apply: 
  

	 	1.	An approved automobile(s), whether of U.S. or host origin, insofar as it is possible to do so, will be chosen as customary and reasonable type automobile(s). The approved
automobile(s) will be one, which is considered to be in most common use in the host location. Each host location manager will be responsible for identifying the approved automobile(s) for that location. 

  

	 	2.	Where financial assistance is requested and approved, Alcoa will maintain a continuing equity per the sample calculation described in Exhibit 3 and a blank form has been included
for your use. “Equity” is used to describe an ownership interest in the automobile, which is secured through the Company. Do not include sales tax, registration, and license plate fees as part of the loan. These fees are considered T&R
expenses and should be claimed via a Moving Expense Statement and not included in the equity calculation. 

  

	 	3.	If the expatriate wishes to purchase a larger or more costly automobile(s), the expatriate will only be granted the financial assistance that would have been paid up to a
Company-approved model and the balance will be for the expatriate’s personal financial responsibility. 

  

	 	4.	The expatriate will be personally responsible for the cost of all operational expenses such as fuel, maintenance, repairs, storage, insurance, etc. 

  

	 	5.	The expatriate will be personally responsible for the cost of title registration, license plates and inspection of the automobile(s) following the initial reimbursement of these
expenses. 

  

	 	6.	Alcoa’s minimum participation in any equity situation shall not be less than 1% of the expatriate’s equity. 

  

	 	7.	When the employee elects to take advantage of the Equity Assistance, they are not eligible for any other automobile loans. 

 Re-Establishing An Equity Agreement 
 Ordinarily, an
expatriate on long-term assignment will be permitted a maximum of two (2) automobile equity agreements during the global assignment (one for the employee and another can be offered for the spouse). This limitation will be waived under the
following conditions: 
  

	 	1.	After four years at the same location, an expatriate may participate in a new automobile equity agreement(s), if it can be reasonably expected that the global assignment will
continue for an additional two years. 

  

 ORIENTATION – September 1, 2002 Rev 2 
 Page 20 of 120 

	 	2.	Upon transfer from one global location to another (other than a transfer within a region), an expatriate will be eligible to participate in a new automobile equity agreement(s).

 Under either of the above, Alcoa will authorize a new equity agreement(s) and the expatriate will be responsible for selling
the original automobile(s) and making pro rata reimbursement to Alcoa for its share of the equity. The same guidelines as stated in the original equity agreement(s) also apply in the cost of re-established equity agreements. 
 If the equity automobile(s) can be imported to the new country of assignment and costs involved clearly support this approach as the most economical, then
the costs to transport and import will be considered as a normal moving expense, and the equity relationship between the expatriate and Alcoa will remain unchanged. 
 Repayment of Equity 
 Upon the sale of an automobile(s) or before departure from the host location,
whichever comes first, in which Alcoa has an equity interest, and the expatriate will be responsible for making pro rata reimbursement to Alcoa. In no event, however, shall Alcoa recover on such sale a greater amount of money than it initially
contributed to the purchase. 
 If an expatriate elects to retain an automobile(s) global or ships an automobile(s) to the home country upon
retirement, termination of employment or return to the home country for reassignment, the expatriate will make pro rata reimbursement to Alcoa for its equity. This amount is determined by using the current market value in the host country of
assignment as the sale price for calculating the pro rata reimbursement. Pro-rata payments should be made via personal check, made payable to Alcoa, and forwarded to your Prudential IAM in Scottsdale Arizona to clear this obligation. 
 Below, please find an example of how repayment of equity shares (expatriate and company) are determined and what must be paid to the Company to clear an auto equity
arrangement. 
 STEP ONE: Obtain the retail value of the automobile in the host country using the official used automobile guide of that
country. If there is no official used automobile guide, please work with your local HR management to establish the retail value of the automobile. You will need this in order to complete Step Two. 
  

 ORIENTATION – September 1, 2002 Rev 2 
 Page 21 of 120 

 STEP TWO: Forced Sale Reimbursement 
 You are entitled to a forced sale loss reimbursement on the automobile. You should complete the form “Automobile Forced Sale Reimbursement’ provided to you by
your Prudential IAM. Submit the completed form along with documentation supporting the retail value and the selling price of the automobile. You must include a receipt indicating the date of sale and the amount for which the automobile was sold.

 STEP THREE: Clearing the Auto Equity Arrangement 
 To determine the 33% equity that must be repaid to the Company (per the example on Page 22), please use the formula below: 
 EXAMPLE 
  

							
		  	 Proceeds from the sale of automobile
	  	$5,000	  	
	 +
	  	 Forced Sale Reimbursement
	  	+1,000	  	
				
		  	 Total x .33
	  	$6,000	  	x .33
	 =
	  	 amount you should pay to Alcoa to clear equity arrangement
	  	  =  $1980

 Using the above example you would need to write your check to Alcoa in the amount of $1980 and send to your
Prudential IAM in Scottsdale, Arizona. This would clear your auto equity obligation with the Company. 
 All completed forms and supporting documentation
must be submitted to your Prudential IAM in Scottsdale, Arizona for processing. 
 All questions regarding this policy should be addressed to your Prudential
IAM in Scottsdale, Arizona. 
 The Company does not reimburse the expatriate for the cost of shipping an automobile(s) back to the home country upon
completion of the assignment. All such costs are the expatriate’s personal financial responsibility. 
  

 ORIENTATION – September 1, 2002 Rev 2 
 Page 22 of 120 

 EXHIBIT 3 
 ALCOA AUTOMOTIVE EQUITY* AGREEMENT 
 (For Approved Automobile Purchased in the Host Country)

  

					
	 NAME:
	  	 John Expatriate
	  	
	 LOCATION:
	  	 Sao Paulo, Brazil
	  	

  

											
	 Year:
	  	2000	  	Make:	  	Mazda	  	Model:	  	Hatch 323
	 Cyl :
	  	4	  	Doors:	  	2	  		  	
	
	 Optional
Equipment:                     Air Conditioning, Power Sunroof, Power Steering

  

				
	 Purchase Price - Country of Assignment
(Do not include Sales Tax, Registration, License Plate Fee)
	  	$	30,000
	 Less:
	  		
	 Purchase Price of Identical or Comparable Automobile in the Home Country (Expatriate Equity)
	  	 	20,000
		  	 	 
		
	 Difference (Company Equity)
	  	$	10,000

 EQUITY FORMULA 
  

							
	 	  	Amount	  	Percent	 
	 Expatriate Equity
	  	$	20,000	  	67	%
			
	 Company Equity (not less than 1% of Expatriate Equity)
	  	 	10,000	  	33	%
		  	 	 	  	 	 
	 Purchase Price - Country of Assignment
	  	$	30,000	  	100	%

 Upon the sale of the above automobile, my return to my home country at the conclusion of this assignment or
termination of my employment, I agree to reimburse Alcoa for its proportionate equity, which in no event shall exceed in monetary value the amount of equity, which Alcoa initially loaned for the automobile. 
  

							
	 Expatriate Signature ___________________________________________
	  		  	Date	  	  
	 Approved By ________________________________________________
	  		  	Date	  	  

  

	*	Equity is used to describe an ownership interest in the automobile, which is secured through the Company. 

  

 ORIENTATION – September 1, 2002 Rev 2 
 Page 23 of 120 

 OPTION III - EQUITY ASSISTANCE: SHIPMENT OF AN AUTOMOBILE(s) FROM HOME COUNTRY 
 In those instances where a review of available supporting data clearly indicates that it is in Alcoa’s best interest for either political, commercial and/or economic
reasons to do so, the Company will ship a personally-owned automobile(s) for expatriates on long-term assignment. The Company will absorb the cost of ocean freight, insurance, import duty, conversion, landing and port clearance charges and retain a
continuing equity in the automobile(s) per the sample calculation described in Exhibit 4. (A blank form has also been included for your use.) 
  

	 	1.	If the automobile(s) is new and unused, the expatriate’s equity will be represented by the purchase price. Do not include sales tax, registration, or license plate fee as part
of expatriate’s equity. These expenses should be claimed via a Moving Expense Statement form and not included in the equity calculation. 

  

	 	2.	If the expatriate’s automobile(s) is used, the expatriate’s equity will be the retail value as of the date of shipment as published in the N.A.D.A. Guide or the official
publication in the home country for the region in which the automobile(s) is registered. 

  

	 	3.	For an automobile(s) shipped from the home country, the expatriate will be personally responsible for the cost of the registration, inspection, and license plates following the
initial reimbursement of these expenses. The expatriate is also personally responsible for insurance and for operational expenses such as fuel, maintenance, repairs and storage. 

 Prior to transfer, expatriates wishing to ship an automobile should discuss the particulars of the automobile with the host location management to ensure the automobile
being shipped complies with the country’s insurance requirements and operating regulations. 
  

	 	4.	The expatriate will be responsible for all expenses in connection with the return shipment and importation of an automobile(s) back to the home country. 

 Re-establishing an Equity Agreement 
 Ordinarily, an expatriate on
long-term assignment will be permitted a maximum of two (2) automobile equity agreements during the assignment. This limitation will be waived under the following conditions: 
  

	 	1.	After four years at the same location, an expatriate may participate in a new automobile equity agreement(s), if it can be reasonably expected that the assignment will continue for
an additional two years. 

  

 ORIENTATION – September 1, 2002 Rev 2 
 Page 24 of 120 

	 	2.	Upon transfer from one location to another (other than transfer within a region), an expatriate will be eligible to participate in a new automobile equity agreement(s).

 Under either of the above, Alcoa will authorize a new equity agreement(s), and the expatriate will be responsible for selling the original
automobile(s) and making pro rata reimbursement to Alcoa for its share of the equity. The same guidelines as stated in the original equity agreement(s) also apply in the cost of re-established equity agreements. 
 If the automobile(s) can be imported to the new country of assignment and costs involved clearly support this approach as the most economical, then the costs to
transport and import will be considered as a normal moving expense, and the equity relationship between the expatriate and Alcoa will remain unchanged. 
 Repayment of Equity 
 Upon the sale of an automobile(s) or before departure from the host location, whichever comes first, in which Alcoa has
an equity interest, and the expatriate will be responsible for making pro rata reimbursement to Alcoa. In no event, however, shall Alcoa recover on such sale a greater amount of money than it initially contributed to the purchase. 
 If an expatriate elects to retain an automobile(s) global or ships an automobile(s) to the home country upon retirement, termination of employment or return to the home
country for reassignment, the expatriate will make pro rata reimbursement to Alcoa for its equity. This amount is determined by using the current retail value in the home country as the sale price for calculating the pro rata reimbursement. Pro-rata
payments should be made by personal check, made payable to Alcoa, and forwarded to your Prudential IAM in Scottsdale, Arizona to clear this obligation. 
 The Company does not reimburse the expatriate for the cost of shipping an automobile(s) back to the home country upon completion of the assignment. All such costs are the expatriate’s personal financial responsibility. 
 Below, please find an example of how repayment of equity shares (expatriate and company) are determined and what must be paid to the Company to clear an auto equity
arrangement. 
 STEP ONE: Obtain the retail value of the automobile in the home country using the official used automobile guide of that
country. If there is no official used automobile guide, please work with your local HR management to establish the fair market value of the automobile. You will need the fair market value of the automobile to complete Step Two. 
  

 ORIENTATION – September 1, 2002 Rev 2 
 Page 25 of 120 

 STEP TWO: Forced Sale Reimbursement 
 You are entitled to a forced sale loss reimbursement on the automobile. You should complete the form “Automobile Forced Sale Reimbursement’ provided to you by
your Prudential IAM. Submit the completed form along with documentation supporting the retail value and the selling price of the automobile. You must include a receipt indicating the date of sale and the amount for which the automobile was sold.

 STEP THREE: Clearing the Automobile Equity Arrangement 
 To determine the 40% equity that must be repaid to the Company (per the example on Page 1.21), please use the formula below: 
 Example 
  

							
		  	 Proceeds from the sale of automobile
	  	$5,000	  	
	 +
	  	 Forced Sale Reimbursement
	  	+1,000	  	
			
	 =
	  	 Total x .40
	  	=$6,000 x .40
	 =
	  	 amount you should pay to Alcoa to clear equity arrangement
	  	=$2400

 Using the above example you would need to write your check to Alcoa in the amount of $2400 and send to your
Prudential IAM in Scottsdale, Arizona. This would clear your automobile equity obligation with the Company. 
 All completed forms and supporting
documentation must be submitted to your Prudential IAM in Scottsdale, Arizona for processing. 
 All questions regarding this policy should be addressed to
your Prudential IAM in Scottsdale, Arizona. 
 The Company does not reimburse the expatriate for the cost of shipping an automobile(s) back to the home
country upon completion of the assignment. All such costs are to the expatriate’s personal financial responsibility. 
  

 ORIENTATION – September 1, 2002 Rev 2 
 Page 26 of 120 

 EXHIBIT 4 
 ALCOA AUTOMOBILE EQUITY* AGREEMENT 
 (For Approved Automobile Shipped from the Home Country)

  

					
	 NAME:
	  	 John Expatriate
	  	
	 LOCATION:
	  	 Jamaica
	  	

  

											
	 Year:
	  	2000	  	Make:	  	Honda	  	Model:	  	Accord
	 Cyl :
	  	6	  	Doors:	  	4	  		  	
	 Optional
Equipment:                     Air Conditioning, Automatic Transmission

  

				
	 Purchase Price (new automobile) - All others - Current Retail Value
(Do not include Sales Tax, Registration, License Plate
Fee)
(Expatriate Equity or Current Retail Value)
	  	$	18,000
	 Plus:
	  		
	 Ocean Freight, Insurance, Import Duty, Conversion, Landing & Port Clearance Charges (Company Equity)
	  	 	12,000
		  	 	 
	 Total Landed Value
	  	$	30,000

 EQUITY FORMULA 
  

							
	 	  	Amount	  	Percent	 
	 Expatriate Equity
	  	$	18,000	  	60	%
			
	 Company Equity (not less than 1% of Expatriate Equity)
	  	 	12,000	  	40	%
		  	 	 	  	 	 
	 Total Landed Value
	  	$	30,000	  	100	%

  
 Upon the sale of the above automobile, my
return to my home country at the conclusion of this assignment or termination of my employment, I agree to reimburse Alcoa for its proportionate equity, which in no event shall exceed in monetary value the amount of equity, which Alcoa initially
loaned for the automobile. 
  

							
	 Expatriate Signature ___________________________________________
	  		  	Date	  	  
	 Approved By ________________________________________________
	  		  	Date	  	  

  

	*	Equity is used to describe an ownership interest in the automobile, which is secured through the Company. 

  

 ORIENTATION – September 1, 2002 Rev 2 
 Page 27 of 120 

 EXCEPTIONS TO AUTOMOBILE POLICY 
 Note to Expatriates Assigned to Brazil 
 An interest-free automobile loan(s) is issued locally
in Brazil in Reais. The expatriate should not complete the paperwork in this section for a loan. Contact your local HR Representative at the specific location for instructions to secure an interest-free automobile loan(s) in Brazil. The loan(s) will
be given to the expatriate in Reais and will be converted at that day’s exchange rate to U.S. dollars. A monthly deduction will be made in U.S. dollars from the expatriate’s U.S. paycheck. This monthly deduction will be based on a
repayment plan of 48 months. 
 Note to Expatriates Assigned to Jamaica 
 The Company will provide one automobile. The Company will pay all operating and maintenance costs. For the second automobile, the expatriate can ship a
currently owned automobile to the location. If the automobile currently owned does not meet the standards for shipping a automobile to this location or replacement parts would be unavailable, Alcoa will offer the interest-free automobile loan to the
expatriate in order to purchase a suitable automobile in the U.S. or home country for shipment to Jamaica. In addition, Alcoa will extend the automobile equity arrangement where the Company pays the initial shipping costs to transport the automobile
including import duty, taxes, etc. and the Company will retain a continuing equity in the automobile as outlined in the automobile equity agreement. 
 Note to Expatriates Assigned to Suriname 
 In Suriname, it is not practical to purchase an automobile. The Company
will provide one automobile. The Company will pay all operating and maintenance costs. The type of automobile that will be provided is currently a Nissan Sentra. 
 For the second automobile, the expatriate can ship a currently owned automobile to the location. If the automobile currently owned does not meet the standards for shipping a automobile to this location or replacement
parts would be unavailable, Alcoa will offer the interest-free automobile loan to the expatriate in order to purchase a suitable automobile either in the U.S. or home country for shipment to Suriname. The Company will pay all costs associated with
shipping the automobile to Suriname. This includes freight, import duty, consent fee, etc. All operating costs will be the expatriate’s responsibility. At the end of the assignment in Suriname, the expatriate will sell the automobile to Suralco
and receive payment in U.S. dollars based on the N.A.D.A. “Official Used Automobile Guide” or official used automobile value publication in the country of origin. 
  

 ORIENTATION – September 1, 2002 Rev 2 
 Page 28 of 120 

 Rental of Automobile 
 Where possible, expatriates are requested to limit automobile rental to 4 weeks prior to departure from the home location and an additional four weeks at the host location. Reimbursement will be limited to customary and reasonably priced
automobile(s). The approved automobile(s) will be one, which is considered to be in most common use in the home location. 
 Rental automobiles will not be
provided prior to departure for those expatriates who have stored their automobiles. 
 Upon return to an active assignment in the home country, where
possible, expatriates are requested to limit automobile rental, prior to purchase of an automobile to 4 weeks prior to departure from the host location. Reimbursement will be limited to customary and reasonably priced automobile(s). Each
expatriate’s manager will be responsible for identifying the approved automobile(s) for that location. 
 Short-Term Assignments 
 Expatriates on short-term assignments (less than 18 months) will be provided a Company-owned or leased automobile(s) with prior approval from the host location manager
and your Prudential International Assignment Manager. 
 The expatriate is responsible for oil changes, and gasoline. Any necessary repairs should be
reported to the host location expatriate administrator prior to work being done. 
 Insurance is normally included in the leasing price. If not, the Company
will arrange for insurance coverage. 
 Expatriates on short-term assignments who have stored their automobiles will not be provided automobile rentals prior
to departure. 
 Storage of Automobiles 
 The Company will
not assume the cost of storing automobiles except in the case of short-term assignments of 18 months or less. Prior approval for the storage of an automobile must be obtained from Prudential IAM in Scottsdale, Arizona. 
  

 ORIENTATION – September 1, 2002 Rev 2 
 Page 29 of 120 

 International Driver’s License 
 Before departure to your global assignment, we suggest you check the expiration date of your home country driver’s license and ensure that you renew it at the appropriate time. The fee for this renewal is the
expatriate’s personal financial responsibility. 
 Anyone accepting a global assignment should secure an International Driver’s License.
Contact your local automobile club. The fee incurred for the license only (not the auto club membership fee) may be claimed via a Moving Expense Statement. 
 It is important that you understand the requirements for obtaining and retaining a driver’s license in the host location. The Company will reimburse the costs for the host location driver’s license. 
 In most countries, there is a limitation on the time frame within which you must obtain a valid host country driver’s license. Wherever we could, we have provided
country-specific information but we recommend that you check with your host location administrator regarding requirements or suggestions that may minimize your costs and to obtain the particulars of the host country driving system. 
 We also suggest that you or any family members who wish to drive while on global assignment, secure a letter from your insurance carrier or local motor automobile
department stating how long the driver has held a driver’s license and a history of their driving record. 
 Driver Safety – In a
host country where the driving conditions and procedures are unfamiliar to you (e.g., driving on the opposite side of the road, different/dangerous driving conditions) it is recommended that you enroll in a driver’s education course. This will
prepare you for a more safe driving experience. The expense for enrollment for you and your spouse will be borne by the Company. 
  

 ORIENTATION – September 1, 2002 Rev 2 
 Page 30 of 120 

 BENEFIT PLANS 
 This informal summary overviews the features of Alcoa’s benefits for full-time, active, salaried Alcoa expatriate employees. Please note that long-term expatriates are considered headquartered out of Pittsburgh. To keep descriptions
simple, not every plan detail is included. Statements in this summary are subject to the provision of each plan’s legal document. 
 Alcoa reserves the
right at any time to amend, modify, suspend, or terminate all or any of these plans. 
 QUALIFICATION – DEPENDENTS 
 Alcoa clearly defines what dependents may be included for coverage under Alcoa benefit plans. 
 For Alcoa Medical Benefit Plans purposes the following qualify as dependents. 
  

	 	1.	spouse; 

  

	 	2.	unmarried children under the age of 19 who reside with the expatriate; 

  

	 	3.	full-time students, age 25 or under, in a recognized course of study or training 

 For other expatriate benefits and as outlined in various sections of this manual, the following may qualify for various additional allowances and benefits: 
  

	 	•	 	Expatriates on married or single status with custody of dependents 

  

	 	•	 	The mother or father of the employee or spouse, if they are a permanent member of the household at the time of transfer. 

  

	 	•	 	The mother, father, brother or sister of the employee or spouse during the time of exercising the Family Exchange Option of the Vacation Policy. 

 There may be special circumstances under which others will be allowed as dependents. Approval must be obtained from Prudential IAM who will coordinate application with
Alcoa Expatriate Administration in Pittsburgh. 
  

 ORIENTATION – September 1, 2002 Rev 2 
 Page 31 of 120 

 ALCOA FOUNDATION SONS & DAUGHTERS SCHOLARSHIP PROGRAM–SECTION M 
 Scholarships are awarded each year to children (including stepchildren who are living with the parent employee) of permanent, full-time employees of Alcoa or one of its
wholly-owned, domestic subsidiaries. The standard regulations concerning eligibility apply. 
 Eligible expatriates are notified each year of the procedure
to be followed. 
 Questions regarding this program should be directed to the Alcoa Foundation in Pittsburgh. 
 ALCOA SAVINGS PLAN FOR SALARIED EMPLOYEES 
 Non-U.S. Citizen

 For legal reasons it is not possible for non-U.S. citizen expatriates to participate in the Alcoa Savings Plan. In lieu of this
benefit, they are paid a cash sum each month savings plan differential equivalent to the Company’s contribution based on an assumed maximum savings on the part of the expatriate. This payment is guaranteed through a contract letter (Exhibit 1).

 Citizen 
 The Alcoa Savings Plan
currently in effect is available to eligible Alcoa U.S. citizen expatriates and Alcoa U.S. permanent resident alien expatriates. Contributions are calculated on base salary only. 
 For Savings Plan assistance call InfoLine Monday through Saturday from 6:00 a.m. to 2:00 a.m. eastern time. An InfoLine Representative is available from 9:00 a.m. to 9:00 p.m. eastern time, Monday through Friday. The
toll-free number is 1-888-ALCOA123 or (1-888-252-6212). If you are unable to use the toll free numbers, dial 1-847-883-0420. When you call, you will be asked for: 
  

	 	•	 	Your Social Security Number 

  

	 	•	 	Your Personal Identification Number 

  

	 	•	 	WARNING: if you lose your PIN, you will not have access to your account until you receive a new PIN in the mail. 

  

	 	•	 	To receive a new PIN # call InfoLine at 1-888-252-6212 or 1-847-883-0420 

 Through InfoLine, you can change the level of your contributions, change investments ,transfer investments, make loans and withdrawals, etc. 
  

 ORIENTATION – September 1, 2002 Rev 2 
 Page 32 of 120 

 EXHIBIT 1 
 xxxx, 2002 
 XXX 
 Dear: 
 This letter will confirm our mutual understanding concerning certain employee benefits, more particularly described hereafter, which Alcoa Inc. has agreed to extend to
you in consideration for your continuing service for the Alcoa group (which comprises Alcoa, its subsidiaries and affiliates) while assigned to
                     . For purposes of determining continuous service, your original employment date of
                     , will apply. Your home country for purposes of this letter is
                    . 
  

	 	1.	A Foreign Service Premium of         % will be added to your base salary (up to a maximum of
$            .00 per month). 

  

	 	2.	Participation in the Alcoa Employees Group Benefits Plan as governed by that Plan. 

 OR 
 Participation in the ATC Employees
Group Benefits Plan as governed by the Plan. 
  

	 	3.	The total household operation expenses (rent and utilities) you are obligated to pay during your assignment in
                     is $            .00 per month. Alcoa will pay any cost
over and above this figure, excluding telephone. 

  

	 	4.	For vacation purposes, your point of origin will be considered
                    . 

  

	 	5.	Except as commented on above, you are entitled to all other benefits outlined in the Expatriate Administrative Manual. 

  

	 	6.	When you are transferred to another location or when your service with the Alcoa group terminates, the terms of this contract are null and void from the beginning of its application
to you, as if it had never existed, except for those benefits that were actually paid to you during the contract term. 

 The benefits under
this agreement are extended to you during the term of this agreement subject to all the same conditions as those contained in the benefit plans mentioned above as those plans may be amended from time to time. 
 Please sign both copies of the contract letter, retaining one for your personal file and returning one to the attention of Linda M. Hepp, Pittsburgh Corporate Center, at
your earliest possible convenience. 
 Sincerely yours, 
  

 ORIENTATION – September 1, 2002 Rev 2 
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 INSERT COMPANY NAME 
  

			
		
	 BY:
	 	  
		 	 Insert Name / Insert Title

 Agreed to and accepted this
                     day of
                    , 2002. 
  

	
	
	   
	 (Signature of Expatriate: )

  

					
	 cc:
	 	 Karen Collette –
	  	 Alcoa Corporate Center

		 	 M.E. Lammel –
	  	 Alcoa Corporate Center

		 	 Rachel Gilmore –
	  	 Buck Consultants

		 		  	 One Mellon Bank Center

		 		  	 500 Grant Street, Suite 2900

		 		  	 Pittsburgh, PA 15219

  

 ORIENTATION – September 1, 2002 Rev 2 
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	 	7.	You will not participate in the Alcoa Savings Plan for Salaried Employees. In lieu of the Savings Plan benefit, we will pay you in cash each month an amount equivalent to the
Company’s contribution, based on an assumed maximum savings on your part (6% under present plan). 

  

	 	8.	You will not participate the Alcoa Retirement Plan. If you retire, become disabled, or die while this contract is in effect, benefits will be paid in your home country currency
under this contract which, when totaled with other benefits received from other programs which have covered you during your service with the Alcoa group, will equal a benefit you and/or your family would have received had you continued employment in
your home country for that period of service. 

  

	 	9.	Since you will not receive any social security benefit in the U.S., we will reimburse you for the cost of this payroll tax monthly. 

 AUSTRALIA 
 You will continue in the Alcoa of
Australia Pension Program for the duration of your                      assignment and will not be entitled to any other retirement benefits
form Alcoa. An appropriate deduction will be made from your salary each month to cover your contribution to this Plan. 
 Or 
 You will continue in the KAAL Alcoa Superannuation Fund for the duration of your U.S. assignment and will not be entitled to any other retirement benefits
from Alcoa. An appropriate deduction will be made from you salary each month to cover your contribution to this plan. 
 CANADA 
 You will continue to participate in the Canadian Social Security scheme during your assignment in Italy. 
 You will continue to participate in the Canadian Pension Plan during your assignment in Italy. 
 GERMANY 
 You will continue to participate in the
Alcoa Chemie GmbH Pension Plan for the duration of your assignment and the company will continue to make contributions to that plan on your behalf. 
 HUNGARY 
 You will continue to participate in the Hungarian Pension Plan and will continue your contributions in that plan
during this assignment. 
 JAMALCO 
 You
will continue to participate in Jamalco’s Pension/Savings Plans and will continue your contributions in those Plans during this assignment 
  

 ORIENTATION – September 1, 2002 Rev 2 
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 SURINAME 
 You will continue in the employees’ retirement plan of Suriname Aluminum Company during this assignment. 
 You will continue to
participate in the Suralco Savings Plan. 
 SWITZERLAND 
 You will continue in the Swiss Pension and Social Security Plans. 
 UNITED KINGDOM 
  

	A.	You will continue to participate in the Alcoa Extruded Products (UK) LTD Pension Plan for the duration of your assignment and will not be entitled to any other retirement benefits
from Alcoa. 

  

	B.	You will remain in the Social Security Plan in the UK so no payments will be withheld from your U.S. paycheck for U.S. social security contributions. 

 UNITED STATES 
  

 ORIENTATION – September 1, 2002 Rev 2 
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 QUALIFICATION – DEPENDENTS 
 Highmark Blue Cross Blue Shield is the medical and behavioral health claims administrator for expatriates. 
 CLAIMS OUTSIDE THE UNITED STATES 
 All eligible medical and behavioral
health claims will be paid at the in-network level for services performed outside the United states. The claims will be paid at the in-network level up to the amount charged. 
 Claims must be submitted in English. Please indicate on the claim form the Rate of Exchange in effect on the date services were rendered. 
 Your health care claims for services outside the U.S. should be submitted to the following Highmark Blue Cross Blue Shield representative: 
  

			
	 Kevin Dumas
	  	
	 Phone:
	  	 412-544-0169                      Fax:
412-544-5186

	 E-mail:
	  	 Kevin.dumas@highmark.com

	 Address:
	  	 Highmark Blue Cross Blue Shield, 120 Fifth Avenue Place,

		  	 Suite 2028, Pittsburgh, PA 15222 USA

 Claims in the United States 
 Expatriates that have health care services in the United states must use a Highmark Blue Cross Blue Shield provider in order to receive benefits at the in-network level. If you go out-of-network for services,
you will receive a lower level of benefits and you may have to file claims and pre-certify any hospital admissions yourself. Also, your benefits are based on reasonable and customary limits. You are responsible for paying any charges above the
reasonable and customary limits if they are billed by an out-of-network provider. 
 For information about Highmark’s PPO network providers: 

Go to their Internet address: www.bcbs.com/healthtravel/finder.html 
  

 ORIENTATION – September 1, 2002 Rev 2 
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 Highmark Blue Card World Wide Program is available to expatriates. This is an international network of hospitals
and physicians. If an expatriate uses a provider that participates in this program, claims will be paid at the in-network level based on the negotiated contracted rate. 
 The difference between hospital care versus professional worldwide care is as follows: 
 Inpatient hospital care – the
provider files the claim. You are not required to pay up front costs. You are responsible for any applicable deductibles, copays, coinsurances, and non-covered services. 
 Outpatient hospital care and professional services – You pay the provider and file the claim with Highmark representative Kevin Dumas. 
 For information about Highmark’s Blue Card World Wide network: 
 For hospital providers go to Highmark’s Internet
address: 
 http://www.bluecares.com/healthtravel/worldwide hospitals.html 
 For hospital and local participating physicians call the Blue Card World Wide Service Center collect at 8-804-673-1177.

 The Highmark claim form can be found on Alcoa’s InfoLink Intranet site: 
 http://intranet.alcoa.com/hr.horms 
 International SOS – Worldwide Emergency Assistance Services is available to
expatriates. Alcoa has contracted with International SOS to assist global expatriates and US-based employees with medical needs when on business travel outside of one’s home country. For assistance in the United States you can call
1-800-523-6586. For services outside of United States you should call the SOS Philadelphia Office collect at 215-245-4707. 
 Alcoa encourages you to
contact International SOS for identifying the best service providers in-country for your particular needs. 
  

 ORIENTATION – September 1, 2002 Rev 2 
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 PRESCRIPTION DRUGS 
 Retail Prescription Drug Plan – Outside the United States: 
 PCS is the prescription drug administrator
for expatriates. PCS does not have a pharmacy network outside the United States. Covered prescription drugs purchased in another country are eligible for reimbursement. You will pay for the prescriptions purchased outside the U.S. and submit the
prescription drug expenses to PCS. To receive reimbursement, you need to submit a PCS Foreign Claim Form with copies of your prescription drug receipts. Claims will be paid based on the prescription drug option that you elected fir 2002. 

Expatriates with Intranet access can find the PCS Foreign Claims Form on the Alcoa InfoLink web site. 
 Intranet address: http://intranet.alcoa.com/hr/forms 
 Submit the claim to the address on the form. 
 Retail Prescription Drug Plan 
 You should purchase your
prescriptions at PCS network pharmacies to receive in-network benefits for prescriptions purchased in the United States. You can call PCS at 1-800-966-5772 to find the network pharmacy closest to you. This number appears on your prescription drug ID
card. You and your eligible dependents must always be prepared to present this card to network pharmacists. 
 If you use an out-of-network pharmacy you pay
the full cost of the prescription and then submit a claim form and receipt to PCS. You will be reimbursed at the in-network retail level for covered prescriptions less the applicable deductible and co-payment. You also must pay any difference
between the PCS negotiated rate and the pharmacy’s actual charge. 
 Mail Order Prescription Drugs – 90 Day Supply 
 PCS cannot mail prescription drugs to non-U.S.A. addresses. If you wish to take advantage of this cost-effective program for maintenance drugs, you need to have your
prescription mailed to someone in the U.S. and make arrangements to pick it up. 
 In order to receive authorization for a
one-year supply of medication you must do the following: 
  

	 	•	 	Prescriptions should be written for a one-year supply of medication with no refills. 

  

	 	•	 	Your prescription should be written by a U.S. doctor. 

  

	 	•	 	Send the prescription plus check or credit card number to Karen Collette for the authorization. Generic and brand name drug cost will be based on the prescription drug option that
you selected. 

  

	 	•	 	Mail your mail order prescription requests to Karen Collette, Alcoa, Room 4B14, Pittsburgh, PA 15212. 

  

 ORIENTATION – September 1, 2002 Rev 2 
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 DENTAL 
 The dental option you elected in 2001 will continue in 2002. The next opportunity to chose a new dental option will be during FlexChoice 2003 enrollment. 
 Employees new to Alcoa’s Dental Plan will have two dental options, or you can elect no dental coverage at all. The dental election you make now will be in place for all of 2002. Future dental enrollments will be offered on a two-year
cycle. This means that your 2003 FlexChoice dental election will be in place for all of 2003 and 2004. 
 The dental claims administrator is United Concordia
(subsidiary of Highmark Blue Cross Blue Shield). 
 Outside the United States 
 You can see any licensed dentist outside the United States. Claim payments will be based on your elected dental option. Claims will be paid up to charge based on the provisions of the Dental Plan. 
 In the United States 
 You can see any licensed dentist. United
Concordia has an extensive network of participating dentists who accept negotiated rates and file claims for you. If you use a non-participating dentist, you will pay any difference between the reasonable and customary charges and the dentist’s
charge. 
 United Concordia’s Web site has information on participating providers. 
 Internet address: www.ucci.com 
 Click on “Client
Corner” then Alcoa. 
 The United Concordia claim form can be found on Alcoa’s InfoLink Intranet site: 
 http://intranet.alcoa.com/hr.forms 
  

 ORIENTATION – September 1, 2002 Rev 2 
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 VISION 
 The vision option you elected in 2001 will continue in 2002. The next opportunity to chose a new vision option will be during FlexChoice 2003 enrollment. 
 Employees new to Alcoa’s Vision Plan will have the option to elect vision coverage during 2002 FlexChoice enrollment. You will have the option of choosing single or family coverage, or no coverage at all. The vision election you make
now will be in place for all of 2002. Future vision enrollments will be offered on a two-year cycle. This means that your 2003 FlexChoice dental election will be in place for all of 2003 and 2004. 
 Routine eye exams are covered under the Vision Plan. (Any eye exam with a diagnosis will processed under the Medical Plan.) The Vision Plan is administered through
Clarity Vision (subsidiary of Highmark). 
 The vision benefit provides coverage for a routine eye exam, and benefits for frames and standard lenses, or
contacts. You can have a routine eye exam, and purchase standard lenses and contacts once per year. You cannot purchase standard lenses and contact in the same year. Frames are covered once every two calendar years. 
 Outside of the United States: 
 Routine eye exams performed
outside the U.S. and eyeglasses purchased outside the U.S. will be paid at the out-of-network level. 
 Inside the United States:

 Vision benefits in the U.S. must be with an in-network provider in order to receive the higher benefit. If you do not use a network provider, your
claims will be paid at the out-of-network level. 
 Clarity Vision’s Web site has information on participating providers: 
 Internet address: www.clarityvision.com 
 Click on
“Preferred Network” 
 The vision claim form can be found on Alcoa’s InfoLink Intranet site: 
 http://intranet.alcoa.com/hr.forms 
  

 ORIENTATION – September 1, 2002 Rev 2 
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 LONG-TERM CARE 
 Long-Term Care is a fully insured plan with MetLife that covers nursing home and home care for patients who are unable to perform certain activities of daily living. Expatriates will have the option during FlexChoice
to receive info about the Long Term Care Plan. MetLife is the administrator of the Long Term Care Plan. 
 Expatriates that are not U.S. citizens
cannot participate in this plan. 
 There is no guaranteed participation in the LTC Plan if you were given the option to enroll in 2001 and declined
enrollment. Medical evidence will be required if you enroll in 2002. 
 Under the Long Term Care Plan, you may cover self, spouse, parents or parents-In-law,
as long as they are U.S. residents. Coverage is available in “daily benefit” amounts of $100, $150, or $200 in long term care facilities. All of the options include an optional inflation increase in daily benefit amount every three years.

 Some of the features of the plan are: 
  

	 	•	 	Home care services (even if provided by a family member) are covered at 75% of daily benefit amount. 

  

	 	•	 	Eligibility for receiving benefits are based on “activities of daily living” (ADL); unable to perform at least 2 of the 6 ADL for a period of at least 90 days due to a
loss of functional capacity. 

  

	 	•	 	Employees that enroll during their first initial enrollment are guaranteed participation in the LTC Plan; medical evidence required for all others. (U.S. citizens are eligible).

  

	 	•	 	Premiums are waived once benefits begin. 

  

	 	•	 	Coverage is portable if you leave Alcoa. 

 You cannot use your FlexCredits
to pay for Long Term Care coverage. Payroll deductions are available for the employee and spouse. All others are direct billed. 
 Employees can call 1-800
GETMET-8 (1-800-438-6388) for information on the new Long Term Care Insurance Plan. Representatives can answer questions and take requests for enrollment kits. Active employees (but not spouses) can enroll via this number during the initial
enrollment period. 
 Alternatively, active employees can view plan and rate information on the MetLife Web site at http://alcoa.metlife.com Active employees
can enroll on-line (except in Kentucky and Montana) and request an enrollment kit for their spouse or other eligible family members. 
  

 ORIENTATION – September 1, 2002 Rev 2 
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 COMPENSATION OVERVIEW 
 Alcoa’s compensation package for expatriates is based on one salary system to insure that all expatriates regardless of home or host location will all be paid on the same basis. Additionally any deductions for
such items as housing and taxes and any payments for allowances such as cost-of-living, foreign service pay, etc., all of which are explained in the following pages, would be comparable to all other global expatriates. 
 Based on cost analysis of different country’s salary structures, tax basis, housing costs, etc., the Company believes one compensation system should be used for all
expatriates regardless of the home country or host location to maintain equity among all employees on a global assignment as an expatriate. Therefore, all global transferees will be maintained on a U.S. dollar basis regardless of their home or host
location. 
 To the extent possible, the Company will maintain you in your home country social and pension plans while on assignment. In those cases where
you are required to make a compulsory contribution to remain in your home country plans, your Prudential IAM will coordinate any such payments with your home country Human Resource/Payroll Administrator. These payments would result in a deduction
from your U.S. pay and that deduction would then be credited to your home location to continue to maintain you in your home country pension or social plans. 
  

 ORIENTATION – September 1, 2002 Rev 2 
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 EXPLANATION OF ALCOA’S EXPATRIATE 
 MONTHLY ALLOWANCES/DEDUCTIONS 
 Dependent Status 
 It is important that you keep your Prudential IAM advised any changes in the number of dependents living with you at the host location as well as changes in your tax dependents. This information is necessary for the
purpose of calculating the allowable tax deductions and allowances paid to you in the form of a cost-of-living allowance. Dependents for expatriate tax compensation are based on the following criteria: 
 The claimed dependent must have less than $2750 of gross income for the calendar year. This income restriction does not apply if the dependent is a child
of the expatriate and either is under age 19 at the close of the calendar year or is a full-time student under age 24 at the end of the calendar year. 
 Over half of the dependent’s total support for that calendar year must have been furnished by the expatriate. 
 A dependent may also be a relative of the expatriate who qualifies as a tax dependent under the definition of U.S. tax laws. Personal situations may be discussed with the Company’s tax consultant at the time of the orientation.

 For those expatriates that do not have a U.S. government assigned social security number, an internal Alcoa number will be assigned by Alcoa which is only
to be used for internal Alcoa purposes. This number is not valid for any other purpose other than internal Alcoa business. 
 Each month the Prudential IAM
will prepare a compensation analysis sheet and forward to each expatriate. This compensation analysis sheet outlines key payments/deductions to be included in that month’s paycheck. 
 Below is an explanation of the various components of expatriate compensation: 
 Base Salary 
 The expatriate’s monthly Alcoa salary paid in U.S. dollars. 
 401K

 Employee pre-tax contribution to the Company’s U.S. savings plan. For those employees ineligible to contribute to the U.S. savings plan, a cash
payment equal to 6% of the monthly base salary will be paid in cash each month in lieu of the contributions into the U.S. savings plan. This payment is taxable income to the employee. 
 Savings Differential Allowance 
 For legal reasons it is not possible for non-U.S. citizen expatriates to participate
in the Alcoa Savings Plan (401K) described above. In lieu of this benefit, these expatriates 

  

 ORIENTATION – September 1, 2002 Rev 2 
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are paid a cash sum each month equivalent to the Company’s contribution (Savings Differential) based on an assumed maximum savings on the part of the
expatriate. 
 Deferred Compensation Deduction 
 Eligible
employees may elect to defer a percentage of their annual incentive compensation and therefore postpone taxation until a future date. Eligible employees may continue to elect this option as expatriates which will impact the monthly hypothetical tax
deduction. 
 Incentive Compensation Allowance 
 Eligible
employees may receive this benefit by achieving key individual performance targets and the Business Unit reaches its performance goals. 
 Foreign Service
Premium (FSP) Allowance 
 This payment is distinguished from those related to the environmental conditions that may or may not justify a hardship
allowance. FSP is an incentive payment designed to acknowledge that the employee/family is leaving familiar working and living conditions. It offers tangible recognition of the difficulties inherent in expatriate service, such as the necessity for
conducting business under unfamiliar laws and customs and in a language other than the employees native one, and separation from home country support staff. The premiums cover expanded duties and responsibilities – for example, training and
developing national employees who may have work habits different from those to which the expatriate was accustomed, or the increased public relations responsibility involved in representing the Company at the host location. It is also designed to
compensate for different work schedules, longer working hours, and separation from home country relatives, friends, business and professional associates. Finally, the premium recognizes that the employee, spouse, and family will have to adjust to
different living patterns, cultural and social environments, and recreation and leisure time activities – that they will become “foreigners” living under unfamiliar political and social institutions. This is calculated as a fixed
percent of the monthly base salary, capped at a maximum dollar amount, and is a tax-free incentive pay to the expatriate. The FSP starts on the day of arrival at the Host Location for assignment and is discontinued on the last scheduled work day at
the Host Location. 
 Hardship Pay Allowance 
 This
payment is made to expatriates assigned to posts where it has been determined through the use of consulting companies and management input that the living conditions are extraordinarily difficult or notably unhealthy or there may be excessive
physical hardship. The degree of hardship is determined by evaluating such elements as inadequate housing accommodations; lack of cultural and recreation facilities; geographical isolation; inadequate transportation facilities; lack of food and
consumer services; adverse effects of climate or altitude; conditions dangerous to life, physical well-being, or mental health; incidence of disease and epidemics; lack of public sanitation; inadequate health control measures; and inadequate medical
and hospital facilities. This is calculated as a fixed percent of the monthly base salary, capped at a maximum dollar amount and is tax-free to the expatriate. The Hardship Pay Allowance 

  

 ORIENTATION – September 1, 2002 Rev 2 
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starts on the day of arrival at the Host Location for assignment and is discontinued on the last scheduled work day at the Host Location. 
 Hypothetical U.S. Tax Deduction 
 Since Alcoa expatriates are all paid
via a U.S. salary base, the Company maintains a tax equalization program (see TAX section of this manual) whereby the expatriate neither bears the burden of any additional taxation nor reaps any windfalls as a consequence of expatriation. To
implement this system, the Company deducts a hypothetical U.S. federal income tax monthly from the expatriate. This hypothetical tax deduction is provided by our consultants, Organization Resources Counselors, Inc. (ORC) and is based on average U.S.
federal income tax rates at your salary level and takes into consideration the number of actual tax dependents allowed by the government. Included in this number is a reduction for taxes based on the average deduction an individual normally can
claim for charitable contributions, medical expenses, etc. This reduction is based on the national average of allowable deductions. Expatriates will have a hypothetical tax deducted monthly from their normal salary. This deduction will be credited
to the expatriate’s host location through the inter-company accounting system as an offset against the total cost charged to that location on behalf of the expatriate. The hypothetical tax deduction will increase or decrease from time to time
based on changes to salary, changes in number of dependents, changes in savings plan or deferred compensation contributions or changes in US tax laws. Actual host country tax costs will be paid by the Company. Refer to the “TAXES” section
of this manual for additional information on the Company’s tax program for expatriates. 
 Calculated U.S. Housing Obligation Deduction

 Since Alcoa expatriates are all paid via a U.S. salary base, the Company maintains a housing policy whereby the employee contributes to their housing
cost at the host location an average amount that would have been made if living in the U.S. A hypothetical U.S. housing obligation will be deducted each month from the expatriate’s salary. This deduction will be based on our consultant’s
current housing table in effect in the year of transfer. The expatriate will then continue to be held to this same obligation (unless there is a change in marital status or the assignment is to another location outside the current region). The
housing deduction starts the day the expatriate moves into permanent living quarters at the host location and is prorated for the first and last months of the expatriate’s assignment. This deduction will be credited to the expatriate’s
host location through the inter-company accounting system as an offset against the total costs charged to that location on behalf of the expatriate. This housing data is provided by consultants considered among the best in the industry for providing
data of this nature to global corporations. 
 The expatriate generally will rent housing in the host country of assignment of a standard reasonable for an
expatriate at his/her salary level. The purpose is not to provide housing equivalent to that left behind in the home country. For example, the employee leaving behind a large country home and land, of course, will not find a comparable accommodation
in many host locations nor is the intent of the policy to find comparable housing to home but based on customary and reasonable housing costs for 

  

 ORIENTATION – September 1, 2002 Rev 2 
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expatriates at the host location. Refer to the “Housing” section of this manual for additional information on the Company’s housing programs
for expatriates. 
 Cost-of-Living Allowance 
 The primary
purpose of a cost-of-living allowance is to enable an employee paid on a U.S. base salary to maintain the purchasing power of peers in the U.S. and to provide assistance in covering added costs in the host location. A cost-of-living index is
provided by our outside consultant, ORC and is based on current pricing surveys between the U.S. and the host location for goods and services as well as adjustments for exchange rates. The U.S. spendable income is the portion of the U.S. base salary
that a typical family or individual spends on goods and services in the U.S. The U.S. spendable income (day-to-day living costs) increases as US base salary and/or family size increases or decreases when a member of the host location family leaves
the assignment location. Any gap between the U.S. spendable income and assignment-location spendable income is filled by a cost-of-living allowance which can either be positive (because costs in the assignment location are higher than the U.S.) or
negative (because costs are lower than in the U.S.). Our consultant, outlines a market basket which represents a sample of approximately 175 individual goods and services purchased by typical consumers which include the following categories:

  

			
	Food at Home	  	Food away from Home
	Clothing	  	Transportation
	Recreation	  	Personal Care
	Furnishings & Household Operation	  	Medical Care
	Tobacco and Alcohol	  	Domestic Service

 Each category is further broken down into subcategories, each of which represents a proportion of total spendable
income (i.e. , a weight). Example: Ten percent of income may be spent on clothing, but the subcategory women’s dresses might represent 20 percent of the total clothing category. 
 ORC tracks price differences of the market basket items between the U.S. and assignment location through periodic surveys and follows these steps: 
 For each item priced, ORC calculates an assigned weight that represents a proportion of spendable income according to typical spending patterns.

 ORC compares prices in the U.S. and assignment location, calculating a price ratio for each item (the assignment-location price expressed
in U.S. currency divided by the U.S. price). 
 The price ratio for each item is multiplied by its assigned weight to represent that
item’s contribution to the overall index. 
 An overall index (the total of all category indexes) is calculated at the exchange rate in
effect at the time of the publication comparison. 
  

 ORIENTATION – September 1, 2002 Rev 2 
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 The overall index is compared with a base of 100, which represents the U.S. costs. An index greater than
100 indicates that costs of goods and services in the assignment location are more expensive than in the U.S. Likewise, an index of less than 100 indicates that assignment location costs are less expensive than costs in the U.S. 
 The method used to arrive at the cost-of-living allowance is to multiply the U.S. spendable income by that portion of the goods and services index greater
than 100, expressed as a decimal. Even though in most countries the difference in costs vary little from month to month, the cost-of-living index is adjusted monthly, by Alcoa, for any update in exchange rate variances. 
  

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 Obtaining Host Location Currency 
 Since expatriates monthly paychecks are deposited in a U.S. bank account, the expatriate must have a current U.S. bank account. There are several options for obtaining local currency to use at their host assignment
location. 
  

	(1)	Open a bank account at the host location and make arrangements with your U.S. bank to wire transfer a certain dollar amount monthly to the host location bank account. The fee
incurred by each bank for this once per month wire transfer may be reimbursed by submitting the expense, say quarterly, to the Prudential Expense Analyst, Michelle Matteson in Scottsdale, Arizona using the Moving Expense Statement.

 For expatriates paid in U.S. dollars where the U.S. is not your home country, you may claim the cost of two wire transfers
each month – one to your home country and one to the host country. 
  

	(2)	Use a U.S. banking machine card to access funds from a compatible banking machine at the host location. Generally, there is a daily limit on the amount of funds one can withdraw.

  

	(3)	Write a check against your U.S. bank account and deposit into your host location bank. This generally takes about one week for the host location bank to clear the check and
guarantee the funds are available in your U.S. bank account. Once cleared, you can withdraw the equivalent funds deposited in local currency. 

  

	(4)	Take a U.S. direct debit bank card and present it to the host location bank and ask to take a cash advance against the card. The local bank treats the debit card as if it were a
charge card and charges the funds to the debit card and the funds are coming directly from your U.S. checking account. The funds are immediately deposited into your host location bank account. 

  

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 CULTURAL ORIENTATION PROGRAM 
 Alcoa has contracted with Prudential Relocation International to provide cross-cultural training to expatriates and their spouse as an introduction to their new host country. Prudential’s program also includes
information on living in the new host country, communicating across cultures, culture shock, adaptation, and doing business in the host country, etc. 
 Prudential’s IAM will schedule this training session at a time that is convenient to your schedule and prior to you departing on assignment. This two-day briefing is a Company requirement for accepting a global assignment. 

 

 ORIENTATION – September 1, 2002 Rev 2 
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 EDUCATION ALLOWANCE FOR DEPENDENTS 
 ALLOWABLE EXPENSES 
 The dependent education allowances referred to in this section are intended to give reasonable
assistance to the Expatriate when it is recognized and approved in advance by management at the host location & Prudential IAM that the educational facilities at a given host location do not provide for an education normally received in the
public schools in the employee’s home country. Realizing that the employee would normally experience some expenses in his/her home country such as school tax, clothing/uniforms, food, and some miscellaneous expenses, the allowances stated in
this section are not intended to cover total costs. 
 Those costs that are reimbursable are tuition for required courses, necessary transportation, books
and charges for course materials (lab fees, etc.) that are required by the school. Language training is reimbursable only for a child attending a local school where the curriculum is not conducted in his/her native language. The costs of field
trips, elective sports, optional activities or items, etc. are not reimbursable. 
 Reimbursement of approved costs will be made as indicated in the last
paragraph of this section entitled, “Reimbursement of Expenses.” 
 QUALIFICATION—DEPENDENTS 
 For expatriates on married or single status with legal custody of dependents, the following family members will qualify for specific dependent education allowances as
outlined below: 
  

	 	•	 	Unmarried children under the age of 21 who reside with the expatriate. 

  

	 	•	 	Full-time students under the age of 25 who will be enrolled in a recognized course of study or training for at least one full academic year. The course of study must lead to a
career in that field.

 EDUCATION ALLOWANCES 
 Pre-Schooling 
 The Company will share the cost for this schooling provided it is a structured pre-school education program for the two years
prior to entering Kindergarten. 
 The Company will establish a reasonable subsidy to assist in tuition expense. The expatriate will be held to a
hypothetical cost established by the Prudential IAM in Scottsdale, Arizona, each year based on the average cost of pre-schools for each age group. (Since expatriates are paid via the US payroll, the hypothetical costs will be 

  

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based on US costs.) The subsidy will be based on the age of the child and number of hours per week the school is attended. For schools approved by the host
location manager, the Company will pay any reasonable additional costs beyond the hypothetical US costs. Families that elect this option should request the current hypothetical pre-school cost from the Prudential IAM.
 Any transportation costs will not be reimbursed. 
 Kindergarten/Grammar/High School—Host Location 
 Where an International School is available, the Company will reimburse tuition and the
other reimbursable expenses outlined in the above paragraph entitled, “Allowable Expenses.” 
 In those locations where an International School is
not available, the Company will establish a reasonable subsidy to assist with the tuition for another school that will provide an education that is on par with the education provided by the International Schools System. 
 When the Expatriate chooses not to send the student to a local public school that has been deemed adequate, the maximum allowance received will be the approved local
public school allowance for the specific grade applicable as though the student were attending a local public school, and no transportation allowance will be given. 
 FOR THE FOLLOWING SITUATIONS, THE BASIC TEST OF A SCHOOL’S ADEQUACY IS THAT A CHILD WHO POSSESSES NORMAL, STANDARD LEARNING SKILLS, AND COMPLETES A GRADE IN THE OVERSEAS ELEMENTARY OR SECONDARY SCHOOL, WILL BE
ABLE TO ENTER THE NEXT HIGHER GRADE IN A PUBLIC SCHOOL IN THE HOME COUNTRY. 
 Grammar/High School—Home Country Location 
 Only in those host locations where public schools and private schools (or certain grades) have been determined to be inadequate by local management and Prudential IAM in
Scottsdale, Arizona a dependent education allowance will be given to assist in the expenses incurred when the student remains in the expatriate’s home country for grammar school or high school studies. The Company will establish a maximum
subsidy to assist in covering actual tuition, room, board and certain required expenses. 
 Should the student remain in the expatriate’s home country
to attend a public school and live independently or with a family member or guardian, certain expenses are reimbursable. 
  

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 For those students who are currently attending a private school of their choice in the expatriate’s home country,
the parent will continue to be responsible for the tuition and school fees. 
 Whether a public or private school is attended, the Company will reimburse
expenses which would normally occur if the student were living with parents in the home country and should include ordinary and reasonable costs for meals, necessary transportation and an equitable amount that will recognize the responsibilities of
a family member or temporary guardian(s) that are inherent in this situation. All of this information must be submitted in advance to your Prudential IAM. 
 In addition, the student is entitled to two round trips, most direct route, business class from the school to the expatriate’s host country plus a Travel Expense Allowance of $75 per round trip. 
 Grammar High School—Other than Host/Home Location 
 In those host
locations where local management have determined that the local schools (or certain grades) are inadequate according to home country public school standards, either at the grammar school or high school levels, it might be necessary for the student
to attend a school in a location other than the host or home location. 
 When the parents elect not to keep the child in the home country school and choose
to utilize a school closer to their host location, the maximum allowance will be based on the amount of reasonable and customary boarding and related costs established for the home country. 
 However, consideration may be given to a boarding facility that is significantly closer to the employee’s host country location even though the costs might be
slightly higher. 
 In addition, round trip, most direct route, coach class air transportation costs will be reimbursed once per year as follows: 

 

	 	•	 	One trip per year from the school to the employee’s point of origin 

  

	 	•	 	One trip per year from the school to the employee’s host location

 In
addition, a Travel Expense Allowance of $75 for each of the above trips is reimbursable. 
 TUTORING/ADDITIONAL COURSES 
 In certain cases, the host country school may advise the need for special/additional tutoring in order to bridge any shortfalls between the home country school’s and
the 

  

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new host country school’s requirements or to allow expatriates’ children to integrate into the next assignment’s educational system. For
reimbursement of these expenses, the expatriate will need to do the following. 
  

	 	•	 	Obtain a letter from the host or home country school’s administration evidencing the need for tutoring/additional courses; and 

  

	 	•	 	Submit the costs with receipts on Moving Expense Statement specifying the need and anticipated amount of tutoring, hours, etc. required for the child to the Prudential Expense
Analyst, Michelle Matteson care of Alcoa Corporate Center, Pittsburgh for processing. 

 Additionally, language lessons are provided in those
instances where courses are taught in a language unfamiliar to the child. Alcoa will reimburse costs associated with some necessary language tutoring if it takes place at the child’s school. These costs are also reimbursable by submitting the
costs with receipts on Moving Expense Statement. 
 COLLEGE STUDENTS 
 Alcoa Does Not provide an allowance to assist the Expatriate with the expense of educating a student at the college or university level. Alcoa will, however, pay a maximum of one round trip, business class airfare
each school year using the most direct route from the school attended to the parents’ host location plus $75 per round trip as a Travel Expense Allowance. The number of round trips is limited to four (one per year for the normal four-year
course) and shall be taken in lieu of the dependent student’s Vacation Transportation and Travel Expense Allowance due when residing with parents in the host location. One of the student’s parents may use this round trip transportation
once per year in substitution of the student. If a parent uses the ticket, they are not entitled to the $75 Travel Expense Allowance. If the dependent student is married, the allowances referred to in this section do not apply to the student’s
spouse or children. 
 In addition to the one round trip each school year, Alcoa will pay a maximum of $350 or the actual transportation cost, whichever is
less, of a second trip within or outside the home country or continental United States. This trip must be taken during the academic school year. The Travel Expense Allowance for this trip is $75.00.
  

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 REIMBURSEMENT OF EXPENSES 
 An original Moving Expense Statement covering any expense allowed under this Education Allowance for Dependents must be sent to the Prudential Expense Analyst, Michelle Matteson care of Alcoa Corporate Center, Pittsburgh for processing.

 Original receipts for expenses claimed must be attached to the Expense Statement. The receipts should include the student’s name, school attended,
location of school, grade attended, a breakdown of the charges and the period of time covered. The appropriate charges and the student’s name and period of time covered should be indicated on the Expense Statement. All charges should be
converted to U.S. dollars and all receipts should be translated into English. 
  

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 EMERGENCY/SECURITY PLANNING 
 EMERGENCY PLANNING 
 In the unlikely event that you and your family encounter some unforeseen emergency, the following
guidelines have been established to assist you during those times. 
 Listed below is the 24-hour/day telephone number you may use if you need to contact
Alcoa in case of emergency. Alcoa Corporate Center Guards will answer and direct your concerns to appropriate personnel. 
 412/553-4001

 This telephone number may also be given to relatives with the understanding that it is to be used by them only for emergencies or to ascertain
an expatriate’s safe status when they are otherwise unable to reach the expatriate. The caller should provide the operator with: 
  

	 	•	 	The caller’s name, location and telephone number 

  

	 	•	 	The nature of the problem 

  

	 	•	 	The expatriate’s name and location (when relatives call in) 

 Emergency Planning At Overseas Location 
  

	 	1.	Learn about any local emergency evacuation plans and discuss with family members. 

  

	 	2.	If you have children in local schools, check on their emergency evacuation plan. If there is none, suggest to the school that they develop a plan. 

  

	 	3.	Plan for pets if evacuation is declared—either preparing them for travel with up-to-date inoculation records and veterinary examinations or finding a suitable home for them if
it is necessary to leave them behind. 

  

	 	4.	Keep abreast of your local security situation. 

  

	 	5.	Review your inventory/check list periodically and update. 

  

	 	6.	Learn at least some of the local language to help you in any emergency. In the local language, post a list of instructions and essential phone numbers for household employees.

  

	 	7.	Learn the location of the closest hospital, police station, and embassy with which your home country has diplomatic relations. 

  

	 	8.	Prepare a supply of identification tags for luggage and personal effects to be used for sudden evacuation. 

  

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	 	9.	We suggest you consider identifying a “surrogate parent” at your location with whom you may leave a power of attorney for medical or other emergencies when you might be
separated from your children. 

  

	 	10.	Maintain a separate first aid kit for emergency situations. Keep immunizations up-to-date and recorded on your yellow “shot card.” 

  

	 	11.	After checking on the overseas location’s particular problems—frequent loss of electricity, water, food shortages, etc.—keep necessary items stored for emergencies.

  

	 	12.	Give some thought to necessary items to take with you in the event of evacuation and items to be air freighted later. 

 Evacuation Or Emergency Phasedown 
 In the event of an
evacuation or emergency phasedown, consideration should be given to the following: 
  

	 	1.	Pack luggage with suitable clothing and other necessities. 

  

	 	2.	Pack some toys, snacks, games, and books for children to use when traveling. 

  

	 	3.	Pack up those important papers and records to carry with you, as well as emergency medication. 

  

	 	4.	Take traveler’s checks, personal checks, and some U.S. and local currency with you. Also, take your home country driver’s license, passport(s) and credit cards.

  

	 	5.	Wear practical traveling clothes, suitable for climate of destination, and, when traveling with small children, carry one or more changes of clothing for them.

 For additional information on Emergency Planning see enclosed U.S. Department of State booklet entitled Security Guidelines for American
Families Living Abroad and Personal Security Guidelines for the American Business Traveler Overseas. 
  

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 PERSONAL EMERGENCIES 
 Death Of Expatriate Or Dependent Overseas 
 Should an expatriate or dependent die while residing in their host location, the
Company will pay the expatriate’s estate any applicable differentials, allowances, value of accrued leave or legally required payments, if any, through date of death deducting outstanding charges in his/her personal account. 
  

	 	1.	If buried overseas, the Company will pay for embalming and preparing the body for burial to satisfy government requirements. 

  

	 	2.	If burial is to be at the point of origin or other approved location in the home country, the Company will pay for: 

  

	 	a)	preparing body for burial; 

  

	 	b)	cost of required shipping container; 

  

	 	c)	required documentation; 

  

	 	d)	transportation to undertaking establishment that is no further distant than the point of origin. 

 The cost of the disposition of the remains such as casket, funeral, burial plot and marker will be the responsibility of the expatriate or family.

 Reporting A Death Abroad 
 We suggest
your country’s nearest embassy or consulate be notified as soon as possible when a death occurs. Upon notification, the consular officer may do the following: 
  

	 	•	 	Request proof of the decedent’s citizenship (for example, U.S. passport, birth certificate, or naturalization certificate); 

  

	 	•	 	Report the death to the next of kin or legal representative; 

  

	 	•	 	Obtain instructions and funds from the family to make arrangements for local burial or return the body to the home country; 

  

	 	•	 	Obtain the local death certificate and prepare a “Report of Death” for forwarding to the next of kin or legal representative (in the U.S. courts, this document may be used
to settle estate matters); 

  

	 	•	 	Serve as provisional conservator of the deceased’s estate and arrange for disposition of those effects. 

  

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 Death Or Illness Of Family Member 
  

	1.	Paid Leave: 

 Limited time off will be permitted in case of
serious illness or death of expatriate’s spouse, child, parent, sister or brother. In the event of a death, normal time off will be up to 15 days plus travel; for serious illness, up to 7 days plus travel time. Additional days would be charged
against vacation accrued. 
  

	2.	Transportation (round-trip air fare) only will be reimbursed by the Company from the host location to the employee’s home country location. All other expenses are the
employee’s personal financial responsibility. 

  

	 	a)	for employee in the event of death or serious illness of spouse, mother or father, brother or sister; 

  

	 	b)	for employee’s spouse in the event of death or serious illness of mother, father, brother or sister; 

  

	 	c)	for employee or spouse in the event of serious illness of a child not residing at the foreign location; 

  

	 	d)	for employee, spouse and children in the event of death of a child not residing at the foreign location. 

 At the discretion of the host location manager, round trip transportation may be allowed for expatriate and spouse in the event of death of either of their immediate family. 
 SECURITY PLANNING 
 We are accountable—individually and in
teams—for our actions and results. This is a basic Alcoa value—and it especially holds true when we think about our own safety and security as we travel or live in other countries. 
 To help you remember some basic security concepts, the Corporate Security Department has created a word association: 
 AL-CO-A B-A-S-I-C-S 
  

	AL	ALERT to your surroundings. Watch for unusual events. Be aware of potential problems. 

  

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	CO	COMMUNICATIONS - Know how to communicate with your family, your business associates, and emergency assistance services. Try to have a back-up communication capability.

  

	A	ALTERNATIVES - Plan different courses of action, routes or methods of travel. Vary your route to work. 

  

	B	BLEND into your country, its culture, the normal routines. 

  

	A	ASK for help. Assuming you know what is right or correct or acceptable might cause you to unknowingly violate a law of a country. 

  

	S	SAFETY - Practice defensive driving; as a pedestrian, be alert to local driving customs. Avoid injury caused by inattentiveness, improper lifting, climbing, or
carrying. Emergency medical service may not be as available or capable as in your own country. 

  

	I	INFORMED - Stay informed about the weather, politics, holidays, and crime. Keep trusted friends informed about your plans. 

  

	C	CAREFUL AND CONFIDENT - Be careful in your activities, but confident in your ability to handle yourself in an emergency because you have planned and practiced these
security concepts. 

  

	S	SECURITY is mostly common sense, planning, staying calm and reacting logically. Control access to your home, your cars, your place of business. Use detectors to alert
you to intrusion or fire. Have an escape route. 

 The Alcoa Corporate Security Department works closely with the Prudential IAM to assure that
those employees and their families who accept assignments at locations outside their home country have access to information and assistance for their personal safety and security. 
 Through the U.S. State Department, the Overseas Advisory Council, and Control Risks, Ltd., we are able to regularly monitor changing conditions throughout the world. For extremely uncertain situations, such as the
1991 Gulf War, Alcoa will develop positions on travel and residence in the country which reflect our values and the potential for increased danger. 
  

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 While the host country location has a primary responsibility to assist expatriates in recognizing and dealing with
security problems which are reflective of the local political and cultural conditions, the Corporate Security Department is available to provide additional guidance or suggest other alternatives. We will also assist you with concerns you have about
traveling to other countries on business or vacation. 
 The emergency telephone number listed in this manual is monitored 24-hours per day by Alcoa
Corporate Center security guards. They are instructed to locate Corporate Security personnel and others who may be able to provide assistance. 
 For other
information concerning security planning tips, see the section under “Information on Living Abroad” and the enclosed U.S. Department of State booklet entitled Security Guidelines for American Families Living Abroad and Personal
Security Guidelines for the American Business Traveler Overseas. 
  

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 WHERE TO GO FOR HELP IN ALCOA 
 The following are some additional Alcoa telephone contact numbers in the U.S. you may find useful in an emergency: 
  

			
	 Medical Department
	  	412/553-4520 (No VMX - 7:30 a.m. - 4:30 p.m.)
		  	412/553-2317 (VMX - after 4:30 p.m.)

  

					
	 Psychological/Psychiatric- SAIC
	  	Phone:	  	703-676-2314
	 Carol Lepere
	  		  	
	 carol.a.lepere@cpmx.saic.com
	  		  	
			
	 Security/Travel Conditions
	  	Phone:	  	412/553-4166
		  	Fax:	  	412/553-3313
	 Corporate Security Contact
	  		  	
	 Jay Zelezniak
	  	Phone:	  	412/553-4166
			
	 Prudential Relocation International
	  		  	
	 Sako Nishida
	  	Phone:	  	480/778-6595
	 Susan Barlow
	  	Phone:	  	480/778-6594

 Double Click Icon Below to view Security Guidelines For American Families 
 Living Abroad-Last Revised Nov 1994 
 

 
  

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 HOUSING 
 The objective of the housing policy is that the expatriate should pay no more than what would be normal for a U.S. counterpart with the same base salary and family size. A hypothetical U.S. housing obligation will be deducted each month
from the expatriate’s salary. These housing figures represent the average U.S. housing cost (including basic utilities). The hypothetical housing deduction is based on the Company’s current consultant’s data (Organization Resources
Counselors, Inc.) in effect at the time of the transfer and will remain constant during the assignment unless there is a change in marital status or assignment to another host location outside the expatriate’s current region. 
 The housing obligation will be credited back to the host location to partially off set the total host housing costs. Each host location together with information
provided by consultants will determine the actual housing cost level/type of housing that the expatriate should rent based on customary and reasonable costs for housing at the host location. Host housing costs are the Company’s responsibility
and in most cases will be paid directly by the host location. 
 EMPLOYEE LEASED HOUSING 
 In those locations where there are no Company-owned or leased houses, employees must work with the host location management and their agents to rent
property. The Company will assist the employee by providing transportation for househunting, referring the employee to reliable real estate agents and making loans available to cover rental deposits, “key money” and advance payments based
on customary and reasonable housing costs at that host location. Employee leased housing is subject to advance approval by the location manager before any commitments are made to rent the property. 
 COMPANY-OWNED HOUSING 
 If Company-owned housing is
made available to an employee at the host location, the employee will be responsible to properly maintain its present condition and will be held responsible for damages beyond normal wear and tear of day-to-day living, i.e., damages caused by the
employee’s neglect or misuse. At the end of an employee’s use of Company-owned housing, the employee will be asked to reimburse Alcoa for damages caused to the Company-owned housing in excess of normal wear and tear. 
  

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 SALE OF PRINCIPAL RESIDENCE 
 An employee may elect to sell their principle residence on their own and the Company will reimburse the customary closing costs under the Direct Reimbursement Option. Your Prudential International Assignment Manager
will discuss other options with you during the orientation process. 
 EMPLOYEE-OWNED HOUSING 
 The Company discourages home ownership for expatriates at their host location. However, each business unit can decide if the Company will purchase (and
lease to the employee) a home or give assistance for an employee to purchase at the host location when the expatriate is unable to find suitable rental accommodations and there is a stable market at the host location. 
 The standard of housing as well as buying/selling a house is left to the discretion of the business unit. With approval from the business unit, the
expatriate will be given Company assistance to purchase a property and assume all day-to-day costs including the mortgage and utilities on the property and will no longer contribute a hypothetical housing deduction to the Company. 
 LEASE MANAGEMENT PROGRAM 
 The expatriate may sign a
power of attorney authorizing the Company’s agent to make arrangements for the rental of their principal residence. Under this plan the expatriate receives the rental income from their property but is guaranteed the income will be no less than
their hypothetical housing obligation deducted by the Company as outlined on the Compensation Analysis Sheet. 
 OPTIONAL HOME RENTAL PLAN 

The following sample formula is available for those expatriates who do not place their home under the Lease Management Program but wish to maintain
their home and personally make all arrangements for rental to another party (relative, friend, etc.) 
  

				
	 U.S. Hypothetical Housing Obligation deducted from Expatriate’s monthly paycheck while at the host location
	  	$	1400.00
	 Less Monthly Fair Rental value of expatriate’s principal residence in their home country. Alcoa to engage agent to determine the fair
rental value or the amount of rent that could be expected from a tenant had the Company rented the house on the expatriate’s behalf
	  	 	-1200.00
	 If the expatriate rents their home including household goods and places nothing in storage the Company will give the expatriate credit for the
savings of no storage costs but the Company will not bear any additional cost for furnishings at the host location as a result of the employee not shipping or storing their household goods
	  	 	+ 200.00
	 Total monthly payment to employee
	  	 	+400.00

  

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 DUAL-HOUSING EXCEPTION 
 The Company may, under certain conditions, request an employee to maintain their present home while on an expatriate assignment. In these special cases, the expatriate will be provided Company-paid accommodations at
the host location or assume certain costs to maintain the home country residence. In these cases, there will be no housing offset. 
 UTILITIES/MAINTENANCE COSTS ON HOST PROPERTY 
 The intent is not to cover all utility expenses incurred at the host
location–only those that would not normally be incurred in the home country. 
 As indicated in Paragraph 1 of this section, a
hypothetical U.S. housing cost (including basic utilities) will be deducted each month from the expatriate’s salary. Therefore, the basic intention of the utilities/maintenance cost reimbursement is to likewise reimburse basic utilities costs
at the host location. Basic utility costs are considered to be: 
 Telephone – Basic telephone equipment purchase/rental costs
plus installation charges are reimbursable. Optional equipment and services such as call waiting, caller I.D. voice mail, which are generally considered extra services at home are the employee’s personal financial responsibility. All other
telephone costs are the expatriate’s responsibility including local and long distance calls. Only the initial installation charge is reimbursable. All other telephone charges are the expatriate’s personal financial responsibility.
Additionally the company will reimburse the installation and basic monthly dial-up fee only for the internet service provider. 
 Cell
Phones: Cell phones are optional equipment and are the employee’s personal financial responsibility unless the location manager or the security manager at the Alcoa Corporate Center or host location has advised the need for a cell
phone for security reasons. In those instances, the Company will only pay for the basic equipment costs. 
 Cable, Satellite,
etc.—Only the initial installation charge and basic monthly charges are reimbursable. Any premium channels: Showtime, HBO (or their international 

  

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counterparts), special sports channels, or any other type of pay-per-view channels are the expatriate’s personal financial responsibility. 

Gas, Electricity, Water, Sewage and Garbage Removal – Costs are reimbursable, and generally paid by the host location administration.

 Lawn Care/Gardeners – Costs are not reimbursable and are the expatriate’s personal financial responsibility. The
Company will however reimburse the expatriate for basic lawn care equipment based on customary and reasonable cost. 
 Generally the
expatriate will work with the host location administrator to have these invoices paid directly by the Company; however, in those instances where these expenses are not paid by the location, expenses can be submitted by the expatriate on a Moving
Expense Statement along with the supporting documentation for reimbursement. 
 DOMESTIC HELP 
 Chauffeurs, domestic help, (maids, cooks, babysitters) or any service providers of this nature are the expatriate’s personal financial
responsibility. 
  

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 HOUSEHOLD PACKING, SHIPPING AND STORAGE 
 Alcoa has engaged Prudential Relocation International to manage the shipment of your personal effects and household goods. Prudential will provide all the shipping
requirements for expatriates. 
 Within a few days of your initial briefing by the Prudential IAM, you will receive a call from one of Prudential’s
International Transportation Coordinator (ITC) who is based regionally and is assigned to handle moves originating from your location. You should work directly with your assigned ITC on the details of your move as it relates to the shipment and
storage of your household goods. However, any questions relating to the interpretation of the guidelines outlined in this section of the Orientation Manual should be directed to your Prudential IAM. 
 Please refer to the International Assignment Contact List for the name of your specific International Transportation Coordinator. 
 BAGGAGE ALLOWANCE 
 In as much as allowances for both checked and
carry-on baggage vary from airline to airline and from point of origin to point of destination, we strongly recommend that you obtain the exact baggage allowances with your travel agent when you make the reservations for your trip. Any charges for
excess baggage will be to your personal financial responsibility. 
 OR 
 The Company will pay the fee of excess baggage in lieu of air shipment, provided the cost does not exceed the fee/charge of the allowable air shipment. 
 DEFINITION OF TERMS 
 In order to avoid confusion, the following terms are used as
defined below: 
  

	 	•	 	Personal Effects - Items of clothing, children’s toys and other items of personal use which are usually shipped as accompanied or unaccompanied baggage.

  

	 	•	 	Basic Furniture - Items of the type that are used in living, dining, and bed rooms such as sofas, chairs, tables, beds, dressers, etc. 

  

	 	•	 	Household Furnishings - Such items as towels, sheet sets, blankets, bedspreads, pillows, glassware, china, kitchenware, curtains, pictures, infant cribs and other nursery
items. 

  

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	 	•	 	Appliances/Electronics - Washers, dryers, refrigerators, stoves, dishwashers, microwaves, vacuum cleaners, TV’s, VCR’s, stereos, radios, computers, lamps, etc.

 Expatriates are expected to ship at Company expense all necessary basic furniture, appliances/electronics, household furnishings and
personal effects as indicated above to their host location to establish comfortable living arrangements. However, the Company realizes that it usually is not possible to duplicate the home country living situation and this fact is taken into
consideration in the Foreign Service Premium. 
 Those appliances/electronics that can be adapted for use in the host country should be shipped at Company
expense. In those countries where the expatriate’s home country appliances/electronics are not electronically compatible with the voltage/current of that of the host country, the Company will reimburse the expatriate for the cost of
adapters/converters. The Company will not reimburse the cost of appliances/electronics unless they cannot be adequately converted by the use of adapters/converters. If it is necessary to replace appliances/electronics, the Company will reimburse
only customary and reasonable replacement costs and only those appliances/electronics which the employee owned prior to the move as indicated by the Valued Inventory List. 
 When window treatments and area carpets are not provided at the host location rental accommodations, the expatriate may purchase these items based on reasonable and customary costs. 
 The costs of converters, adapters, appliances, electronics (when necessary), window treatments, area carpets, etc. are usually reimbursed via the Moving Expense
Statement. 
 All items purchased by the Company for the expatriate’s use are considered the Company’s property and it is expected they will be
maintained in good condition. Upon the repatriation of the employee, these items will then become part of the Company’s inventory. 
 PRELIMINARY
SURVEY 
 A survey will be made by a representative of the moving company in advance of your move to determine packing material and container
requirements. At this time, you should indicate which items will be shipped to the host location and which items will be placed in storage for the duration of your assignment. Please point out any items that you believe will require special handling
or packing. The Prudential ITC will advise you of your home and host country agent contacts who will assist you with your move. 
  

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 LIMITATIONS ON ITEMS SHIPPED 
 Personal Effects Shipment 
 The expatriate should make special arrangements to transport or store and insure items such as jewelry, personal
papers, stamp or coin collections, trading stamps, and any other valuables. 
 The Company will neither arrange for nor pay the cost of their
shipment, storage or insurance. Such items are not insurable by the Company or the Company’s insurance carrier. Options might be to place such valuable items in a safe-deposit box, etc. Any arrangement costs or other fees associated with
these items are the expatriate’s personal financial responsibility. 
 The Company will provide one airfreight shipment per family of personal
effects which may be required while waiting for the ocean shipment to arrive. An employee and his/her spouse are entitled to a maximum total air shipment of 300 pounds plus 75 pounds for each qualified dependent who will be residing at the host
location. This air shipment must be limited to clothing, special medical needs, baby needs, and toys for young children, unless special approval is received from the Prudential IAM. The airfreight shipment is provided to allow the expatriate and
family to stay within personal luggage limitations. However, the Company will pay the cost of excess baggage in lieu of an air shipment. 
 The remaining
personal effects will be shipped with household furnishings and furniture via ocean freight or where appropriate, land transport. 
  

			
	 Note:
	  	Furs can be shipped and insured if the original bill of sale and/or an appraisal from a bona fide furrier are provided to the Company.

 Basic Furniture and Household Furnishings Shipment 
 The Company will ship your basic furniture needs based on the size of the rental property at the host location. The Company will ship those items which will make the host
location residence comfortable provided such items will fit into a 40-foot shipping container. 
 For information regarding arrangements for automobiles,
please see the AUTOMOBILE section of this Manual. Items for which the Company will not assume the cost of shipment or insurance or arrange for their shipment are items which include, but are not limited to, the following: recreational vehicles,
mobile homes, trailers, airplanes, boats (other than small watercraft), bulky hobby or other equipment, etc. in addition to those excluded items mentioned under Personal Effects Shipment (above). Any employee who wishes to ship any of these items
must sign a waiver assuming all responsibility and make all the arrangements for shipping, insurance, damage to the rest of the 

  

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shipment caused by these items, and any duties, taxes or fines which may be levied against these items. 
 We strongly recommend you discuss the shipment of pianos, organs, pool tables, etc. with our carrier to determine the feasibility of shipment as it relates to weather
conditions, possible damage, etc. 
  

			
	 Note:
	  	Antiques can be shipped and are insurable if it is accompanied by an appraisal from a certified antique dealer and a copy is provided to the Prudential International Transportation
Coordinator.
		
		  	If paintings, crystal, etc. of unusually high value are shipped, for insurance purposes, some documentation of their value must be sent to the Prudential ITC.

 The shipment of firearms, case lots of food, wine, liquor and tobacco is strictly prohibited since these items
can jeopardize the importation of all personal effects and household items. 
 Any employee who wishes to ship any of these items must sign a waiver
assuming all responsibility and make all the arrangements for and assume the cost of shipping, insurance, damage to the rest of the shipment caused by these items and any duties, taxes or fines which may be levied against these items. 
 It is expected that the expatriate will exercise good judgment in selecting the items to be shipped to the host location such as a small amount of books, decorative
items, etc., as it is impossible to replicate your home environment during this temporary period. 
 Appliances/Electronics Shipment 
 Those appliances/electronics that can be adapted for use in the host country at a cost lower than a replacement cost should be shipped at Company expense. The cost of
adapters/converters is reimbursable. 
 STORAGE 
 Prudential Relocation International will make all arrangements involved with the packing, hauling, and movement into and, at the end of the assignment, out of storage of those items approved for storage by the Company. 
 The Company will pay the monthly storage costs for those items approved for storage as outlined in this section. The employee should store all items not essential for
the day-to-day living at the host location. 
 Items that the Company will not store include, but are not limited to, the following: all items excluded in
the Personal Effects Shipment (above), automobiles, recreational vehicles, mobile homes, trailers, airplanes, food, tobacco or alcoholic beverages. If an 

  

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employee owns a piano or organ and it is not necessary to ship either of these items to the host location, the employee should first attempt to have the
piano or organ stored with family or friends. The Company will pay the cost to ship, if reasonable, but the Company will not pay any costs involved with the insurance of these items. 
 The Company will pay the cost to store antiques. However, it is necessary to have an appraisal made of these items prior to storage. The appraisal is the only valid document which the insurance company will accept for
settlement of a loss and/or damage claim involving antiques. The cost of the appraisal is the employee’s personal financial responsibility. 
 Also,
please note that photographs may be shipped or stored; however, in the event of loss and damage, insurance covers only the price of film and the developing costs. Upon repatriation, household items that are already in storage or placed into storage
must be removed from storage and accepted as the employee’s responsibility within 12 months of the expatriate’s return date. Storage for up to a maximum of 90 days only will be to the Company’s expense. Any storage costs after the
90-day period is the employee’s personal financial responsibility. If required, the Company will pay for access to the expatriate’s storage lot once during the course of the assignment. However any charges associated with withdrawing items
from storage and all moving charges are the expatriate’s financial responsibility. 
 VALUED INVENTORY LIST 
 The “Valued Inventory List” (VIL) is to be completed by the expatriate for their effects which are being either relocated or placed in storage. This VIL
is the basis for remunerative settlement of any claim for loss or damage. For your own protection, we urge you to be as detailed and accurate as possible. It is imperative that this list be received by Prudential Relocation International
prior to the release of your goods by Prudential for shipment or storage. Company authorization will not be given for shipment or storage until your VIL has been reviewed and approved by your Prudential IAM, consistent with the
policies in this section. Your VIL must be in the hands of your Prudential IAM at least one week before the first day of packing. This requirement is for your protection since our insurance carrier will NOT insure any items that do not appear on a
VIL submitted prior to the shipment of household goods. Anyone who is not in compliance with this one week “lead time” will be required to sign a waiver that Alcoa will not insure the shipment and/or will not insure those items placed in
storage. 
 PLEASE NOTE THAT PACKING WILL NOT TAKE PLACE IF THE VIL HAS NOT BEEN RECEIVED BY PRUDENTIAL RELOCATION INTERNATIONAL.

 Your Prudential IAM will provide you with a blank VIL form. 
 A copy of this VIL should be retained in your host country files as you will need this for any loss/damage claims. 
  

 ORIENTATION – September 1, 2002 Rev 2 
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 INSURANCE 
 Alcoa will
pay for the cost of their insurance carrier. This insurance carrier will reimburse for loss and/or damage on all items (as outlined in this section) that are approved for shipment and storage and which appear on the VIL form. This insurance program
is based on replacement cost. 
 CLAIMS FOR LOSS/DAMAGE TO HOUSEHOLD GOODS 
 In the event of a loss and/or damage claim, it is imperative that you notify your Prudential IAM immediately. Any delays could jeopardize your claim. She will forward instructions as to how you should proceed to file
your claim and notify our insurance carrier who may appoint a surveyor to contact you and survey the damage. Damaged item(s) may not be disposed of until authorization is granted by Alcoa’s insurance carrier. You must also have available a copy
of the VIL. 
 Should you elect to purchase separate insurance, the cost of such insurance is not reimbursable, and Alcoa’s claim settlement will take
into account the duplicate insurance for settlement. 
 REPATRIATION OF HOUSEHOLD GOODS 
 Upon the completion of the expatriate assignment, Alcoa will assume the cost of returning those household goods originally shipped overseas, plus an additional 3,000 pounds net. Should the additional weight exceed
this 3,000-pound limit, the employee will be responsible for the payment of all packing, transportation and delivery charges over the allowed limit. 
 As
soon as Employees learn they are scheduled for repatriation, they should notify Linda Hepp, Expatriate Administration. Linda Hepp will then send an initiation for repatriation to the Prudential International Assignment Manager. 
 Expatriates must update their original VIL prior to the return shipment of their household goods and the VIL should be marked with any additions or deletions from the
original list. 
 Expatriates will receive a package of current instructions and forms from Prudential IAM/ITC. Items which have been purchased overseas
within the last 12 months might be required to be reported on an appropriate form forwarded to you by Prudential Relocation International. Sometimes these special forms are required to release your shipment. Duty and any other special charges on
these personal purchases are the expatriate’s personal financial responsibility. Alcoa will not assume these charges. 
 If you need forms or should any
problems be encountered at any time during your move, please contact your Prudential IAM/ for assistance. 
  

 ORIENTATION – September 1, 2002 Rev 2 
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 Please ask your ITC for a list of any items which may be restricted from shipment into the country of your destination.

 All items in storage must be removed and accepted as the employee’s responsibility within 12 months of the employee’s return date. Storage for
up to a maximum of 90 days only will be to the Company’s expense. Any storage costs after the 90-day period is the employee’s personal financial responsibility. 
 RETIREMENT FROM OVERSEAS ASSIGNMENT 
 The employee’s personal effects, basic furniture and household furnishings
as previously authorized in this section (and provided the total weight does not exceed the restrictions outlined in this section) will be returned to the point of origin in the home country, or to the home country location where the balance of
their household effects are in storage. At the employee’s option, this shipment may be placed in interim storage for a maximum of 90 days at Company expense. Any storage costs after the 90 day period is the employees personal financial
responsibility. Out charges and delivery costs to your originally designated retirement location will be the responsibility of the Company to a maximum of 12 months following retirement. 
 The Company will move your goods from the host location and any stored goods in the home location to a retirement destination other than the last point of origin. The Company will only pay the amount that would have
been paid for all goods (shipment and storage) to be moved from the host location to the original point of origin via the most direct route. 
 INSURANCE 
 PERSONAL PROPERTY AND PERSONAL EFFECTS 
 An expatriate’s personal property and personal effects should be insured by the expatriate in the same manner as the expatriate would insure them while residing in the home country. In most cases, the home
country homeowner’s policy will not insure belongings that are moved from one country to another. 
 Alcoa has found that the enclosed Chubb Plan offers
personal property and personal effects coverage, as well as comprehensive personal liability and personal catastrophe liability coverage. 
 Your insurance
coverage is an individual and personal matter, but Alcoa strongly recommends that you choose some carrier to meet your needs since this type of insurance is not provided by Alcoa. For your convenience, should you elect to use the 

  

 ORIENTATION – September 1, 2002 Rev 2 
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Chubb Plan, we have enclosed information on this Plan, the Prudential IAM will forward you an enrollment form, which should be completed and sent with your
application directly to Chubb. 
 Please note that it is your responsibility to review Alcoa’s policy regarding Household Packing, Shipping and
Storage to determine which personal property and personal effects are insured in transport by the Company in order to protect yourself on any other items that will be your personal responsibility. For example, jewelry (in addition to certain other
property) is not insured by Alcoa at any time prior to, during or after the expatriate assignment. Arrangements for insurance on items not insurable by Alcoa must be made by the expatriate and all charges are the expatriate’s personal financial
responsibility. 
 TRAVEL INSURANCE 
 Travel insurance is
provided by Alcoa while the expatriate is traveling on Company business. However, arrangements for insurance during any other type of travel (for example, Home Leave, Education, etc.) must be made by the expatriate and all charges are the
expatriate’s personal financial responsibility. 
  

 ORIENTATION – September 1, 2002 Rev 2 
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 CONTACT INFORMATION 
  

			
	                                Consolidate Insurance Center
Inc.	  	

 Contact Person 
 David M. Reeve, VP & General Manger 
 11403 Cronridge Dr., Suite 270

 P.O. Box 0664 
 Owings Mills, MD 21117-0664 
 Phone: 410-356-9500 
 Fax: 410-363-3520 
 E-mail: dmr@cicinc.com 
 Web Site: hrrp//www.cicinc.com 
  

 ORIENTATION – September 1, 2002 Rev 2 
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	                                Consolidated Insurance Center
Inc.	  	

 Consolidated Insurance Center (CIC) is a privately held professional, independent insurance agency and brokerage
firm specializing in insurance plans for businesses. Consolidated has roots dating back to 1938. Today, the Center has grown to rank in the top 3% of 41,000 agencies nationwide, based on premium volume. 
 Consolidated offers a full complement of insurance products, services, and solutions for their clients to protect their assets and help them plan for the future.

  

					
	Contact Information	  		  	
	Telephone 410-356-9500	  	 FAX 410-363-3520
	  	
			
	 Postal address
	  	 Electronic mail
	  	
	 Suite 270
	  	 General Information: info@cicinc.com
	  	
	 Owings Mills Md. 21117 
	  	 Customer Support: Service@cicinc.com
	  	

 

 
 Webmaster: dmr@cicinc.com 
  

 ORIENTATION – September 1, 2002 Rev 2 
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 International Property 
 “Although insurance often takes low priority as an employee prepares to go overseas, it is one of the most important things an expatriate must do.” 
 (Mobility Magazine March 1991) 
 Why Buy
International Personal Insurance ? 
 The choice to buy the insurance you need, and not just what is available. 
 Underwritten by a company with a century old reputation for providing Broad Coverage and prompt, equitable claims handling ALL OVER THE WORLD. 

Broad Coverage + Excellent Service + Credible Reputation 
 Chubb International Personal Insurance 
 Important Coverage Advantages 
 Seldom Matched by any of our Competitors 
 Replacement cost of Personal Property with “Like Kind and Quality”, including if necessary, the cost to ship the item to the U.S. , Canada, or any other country where the insured purchased it, and any tariffs or
duties that may be incurred upon entrance to the country of residence. Note , in certain countries these tariffs and duties may be as much as 100 to 200% !. Our competitors only offer replacement limited to a similar item for the same use.

 Coverage for breakage is automatically provided for your valuable articles. 
 Coverage for household goods and personal belongings left behind in the U.S. in commercial storage is provided. 
 As respects Personal Liability and Personal Excess Liability coverage , We will “pay on behalf” of the insured, where allowed legally to
do so; our competitors will indemnify. For the U.S. or Canadian Expatriate who 

  

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has to advance a settlement of say $50,000., our coverage offers a significant benefit, the least of which is peace of mind. 
 We provide Neighbors & Tenants Liability, a coverage required in countries whose legal system is based on the Napoleonic Code i.e. France.
Note, this coverage is required in some countries as a condition of your lease. 
 Our Personal Liability coverage is worldwide,
including the U.S. and Canada. 
 Automatic coverage is also provided while on “home leave” 
 We provide $25,000. in medical payments coverage for a period of up to three years from the date of the accident. Our Competitors offer $1,500. for
up to one year. 
 Service. We use the latest laser print technology to issue customize individual policies on an overnight basis to
each and every United States or Canadian Expatriate / Third Country Nation who signs up for the program. Service. We use the latest laser print technology to issue customize individual policies on an overnight basis to each and every United States
or Canadian Expatriate / Third Country Nation who signs up for the program. 
 Underwritten By: 
 Chubb Insurance Company 
  

 ORIENTATION – September 1, 2002 Rev 2 
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	                                International Property	  	

 “Although insurance often takes low priority as an employee prepares to go overseas, it is one of the most
important things an expatriate must do.” 
 (Mobility Magazine March 1991) 
 Why Buy International Personal Insurance ? 
 The choice to buy the
insurance you need, and not just what is available. 
 Underwritten by a company with a century old reputation for providing Broad Coverage
and prompt, equitable claims handling ALL OVER THE WORLD. 
 Broad Coverage + Excellent Service + Credible Reputation 
 Chubb International Personal Insurance 
 Important Coverage Advantages 
 Seldom Matched by any of our Competitors 
 Replacement cost of Personal Property with “Like Kind and Quality”, including if necessary, the cost to ship the item to the U.S. ,
Canada, or any other country where the insured purchased it, and any tariffs or duties that may be incurred upon entrance to the country of residence. Note , in certain countries these tariffs and duties may be as much as 100 to 200% !. Our
competitors only offer replacement limited to a similar item for the same use. 
 Coverage for breakage is automatically provided for
your valuable articles. 
 Coverage for household goods and personal belongings left behind in the U.S. in commercial storage is provided.

 As respects Personal Liability and Personal Excess Liability coverage , We will “pay on behalf” of the insured, where
allowed legally to do so; our competitors will indemnify. For the U.S. or Canadian Expatriate who has to advance a settlement of say $50,000., our coverage offers a significant benefit, the least of which is peace of mind. 
  

 ORIENTATION – September 1, 2002 Rev 2 
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 We provide Neighbors & Tenants Liability, a coverage required in countries whose legal
system is based on the Napoleonic Code i.e. France. Note, this coverage is required in some countries as a condition of your lease. 
 Our
Personal Liability coverage is worldwide, including the U.S. and Canada. 
 Automatic coverage is also provided while on
“home leave” 
 We provide $25,000. in medical payments coverage for a period of up to three years from the date of the
accident. Our Competitors offer $1,500. for up to one year. 
 Service. We use the latest laser print technology to issue customize
individual policies on an overnight basis to each and every United States or Canadian Expatriate / Third Country Nation who signs up for the program. Service. We use the latest laser print technology to issue customize individual policies on an
overnight basis to each and every United States or Canadian Expatriate / Third Country Nation who signs up for the program. 
 Underwritten By: 
 Chubb Insurance Company 
  

 ORIENTATION – September 1, 2002 Rev 2 
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	                                International Rates	  	

 Please read these guidelines before completing your application for personal insurance abroad. This information
will help you select the coverages you need and determine the corresponding premium. 
 Coverage Options 
 Five personal insurance coverages are available to you while you are residing abroad. 
  

	 	•	 	Personal Property at your residence and in storage (US$200 deductible) 

  

	 	•	 	Valuable Articles (no deductible) 

  

	 	•	 	Personal Liability (no deductible) 

  

	 	•	 	Personal Excess Liability (no deductible) 

  

	 	•	 	Political Risk (US$200 deductible) 

 Coverage is applicable anywhere in
the world during the policy term. Your policy is effective on the date you indicate on the application. This date will be shown on the Coverage Summary of your policy. Your policy is canceled when you complete your overseas assignment and return
permanently to the United States or Canada. 
 Coverage Selection Guidelines 
 Personal Property 
 Personal Property coverage is available for property at your premises outside the United
States and Canada, and separately for property placed in storage. You must purchase a minimum of US$10,000 Personal Property coverage. When selecting a limit for Personal Property coverage, you should estimate an amount that accurately reflects the
total cost to replace your household goods and personal property at today’s prices. For both Personal Property and Valuable Articles (see below), we recommend that you utilize the Chubb International Personal Property Inventory as an
organizational tool. 
 Valuable Articles 
 There
are two types of Valuable Articles coverage: “jewelry” and “all other”. Write a complete description of each item to be insured and its value on the Valuable Articles schedule included in this kit. Attach the schedule to your
application. Enter the total value, rounded to the nearest US$100, on the application as well. Please enclose appraisals for items worth more than US$5,000. 
 Personal Liability 
 You may elect to purchase one of three limits of Personal Liability coverage: US$100,000, US$250,000, or
US$500,000. Please note the International Personal Insurance program does not provide primary automobile or watercraft insurance; however, coverage may be obtained from a local carrier abroad. 
  

 ORIENTATION – September 1, 2002 Rev 2 
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 Personal Excess Liability 
 Additional liability coverage is available in limits of US $1, $3, or $5 million. If you wish to purchase Personal Excess Liability coverage, you must purchase a limit of US$500,00 for Personal Liability. If you plan
to own or operate an automobile or boat while abroad, you must have in effect primary liability limits that are the foreign currency equivalent of: US$25,000 combined single limit or US$15,000/25,000/10,000 for automobile; US$100,000 combined single
limit for watercraft. 
 Political Risk 
 Political
Risk covers perils of war or civil war and insurrection, or acts of sabotage or terrorism. If you wish to purchase Political Risk coverage, the limit is established automatically as the sum of Personal Property (including property in storage, only
if desired) and Valuable Articles coverage amounts, multiplied by the rate per US$100 in the appropriate zone in which you reside. 
 Rating
Information 
 This section will help you determine your total premium for each of the coverages you choose to purchase. Please bear in mind that the
minimum premium for this policy is US$250 
 Coverage limits for the household goods, valuable articles and political risk are available in US$100
increments. The rates for these coverages are based on your foreign locations as noted the Country Classification list. Using the zone in which your foreign residence is located, you can calculate your premium for these coverages (see Premium
Calculation). Please note that coverage is only available for residences located outside the United States and Canada. 
  

 ORIENTATION – September 1, 2002 Rev 2 
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	 Country Classification
	  	 Zone A
	  	 Zone B
	  	 Zone C
	  	 Zone D

					
		  	 Australia
 Austria
 Belgium
 Denmark
 Finland
 France
 Germany
 Iceland
 Ireland
 Italy
 Japan
 Luxembourg
 Monaco
 Netherlands
 New Zealand
 Norway
 Singapore
 Spain
 Sweden
 Switzerland
 Taiwan
 United
 Kingdom
	  	 Argentina
 Bahamas
 Bahrain
 Barbados
 Bermuda
 Brazil
 Chile
 Costa Rica
 Dominican
 Rep.
 Ecuador
 Fiji
 Gabon
 Greece
 Hong Kong
 Hungary
 Indonesia
 Israel
 Ivory Coast
 Kenya
 Malaysia
 Malta
 Mexico
 Morocco
 Portugal
 Qatar
 Saudi Arabia
 South Korea
 Thailand
 Trinidad &
 Tobago
 Uruguay
 Venezuela
 United Arab
 Emirates
 Czech
 Republic
 Slovenia
	  	Any country not listed in zones A, B, or D	  	 Algeria
 Bosnia
 Iran
 Iraq
 Libya
 Serbia
 Syria

 Country classifications subject to change. 
  

 ORIENTATION – September 1, 2002 Rev 2 
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 Rates 
 Household Goods/ 
 Valuable Articles 
 Select the
corresponding rate per US$100 of coverage. Multiply it by the amount you choose for each coverage; e.g. US$1000 of coverage x .86 = US$8.60 of premium. 
  

													
	 	 	Personal Property	 	Valuable Articles
	 	 	At Premises	 	 Commercial
 Storage
	 	Jewelry	  	All Other
	 Zone A
	 	$	.86	 	$	.80	 	$	2.25	  	$	.73
	 Zone B
	 	$	1.12	 	$	.80	 	$	2.70	  	$	1.20
	 Zone C
	 	$	1.35	 	$	.80	 	$	3.15	  	$	1.48
	 Zone D
	 	$	1.90	 	$	.80	 	$	3.95	  	$	2.11

 Liability 
 Select the appropriate premium based on the amounts of insurance you wish to purchase. 

													
	 	 	Personal Liability	  	Personal Excess Liability*
	 	 	Limit	  	Premium	  	Limit	  	Premium
		 	US$	100,000	  	$	50	  	US$	1 Million	  	$	45
		 	 	250,000	  	 	108	  	 	3 Million	  	 	130
		 	 	500,000	  	 	158	  	 	5 Million	  	 	245

  

	*	US $500,000 personal liability limit must be chosen before excess liability may be purchased. 

 Political Risk 
 Select the zone where you
reside and the corresponding rate per US$100 of coverage, and multiply it by the total limit you have chosen for personal property, optional property in storage, jewelry and other valuable articles. 
  

									
	 Zone A
	  	$	 .05	  	Zone C	  	$	 .25
	 Zone B
	  	$	.16	  	Zone D	  	$	.40

  

			
	Premium Calculation	  	You may use this section to calculate the premium for each of the coverages you have chosen to purchase. To complete the application on the next page, you need only enter the appropriate
coverage limits in the spaces provided under Coverage Options.

  

 ORIENTATION – September 1, 2002 Rev 2 
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	 	  	 Coverage
	  	 Amount
 of
 Coverage
	  	 Rate per
 $100
	 	Premium
	Household Goods/ Valuable Articles	  	Property at premises	  	                     X	  	__________	 	=                     
		  	Property in storage	  	                     X	  	__________	 	=                     
		  	Jewelry	  	                     X	  	__________	 	=                     
		  	Other Valuable Articles	  	                     X	  	__________	 	=                     
	Liability	  	Personal Liability	  	                     X	  	__________	 	=                     
		  	Personal Liability	  	                     X	  	__________	 	=                     
	Political Risk	  	Property at Premises/ Valuable Articles	  	                     X	  	__________	 	=                     
		  	Property in storage	  	                     X	  	__________	 	=                     
		  		  		  	Total
Premium	 	=                     

 Complete Application 
  

 ORIENTATION – September 1, 2002 Rev 2 
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 LANGUAGE TRAINING / CULTURAL BRIEFING 
 LANGUAGE LESSON 
 The Company will arrange and pay reasonable costs
for the expatriate and spouse to take intensive language lessons when transferring to a country where their native language is not spoken. These language lessons are intended for expatriate and spouse to learn the host country language. 

Language lessons are not provided for children. 
 It is recommended that
language classes be taken for an initial period of two (2) weeks prior to/ or immediately upon arrival at the host location. Your Prudential International Assignment Manager will provide assistance in arranging for your language lessons through
their service provider, Langua Tutor. 
 We encourage ongoing language instruction at the host location that would be at the Company’s expense.
Arrangements should be made through your Prudential International Assignment Manager. 
  

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 MAIL SERVICE 
 The Pittsburgh Corporate Mail Center forwards personal and business correspondence only via “pouches” to the Company’s worldwide locations on a regularly scheduled basis. 
 Mail is scheduled to leave the Corporate Mail Center every Monday, Wednesday and Friday. DHL is Alcoa’s preferred international courier.* Generally mail sent via
DHL takes 3-5 working days to arrive at the various international locations. Depending upon the country customs, the mail could be held an additional two working days in customs. 
 Unless advised otherwise most expatriates should change their mailing address on personal and business correspondence to reflect the Pittsburgh Corporate Center address (sample address below) who will forward the mail
to you at your host location: 
 Mr. John C. Smith 
 Lausanne, Switzerland (use host location) 
 C/o of Alcoa Inc 
 201 Isabella Street 
 Pittsburgh, Pennsylvania
15212 
 The Company will not forward personal packages. 
 *Note for mail forwarded to Suralco: Mail is forwarded by the Pittsburgh Mail Center early each week to arrive at a designated P.O. Box in Miami by Thursday morning. Suralco has an arrangement with a courier service in Miami
to ensure the weekly mail is picked up by the courier then delivered to a cargo plane each Saturday going to Suriname. 
 *Note for mail going to
Jamaica: 
 Use the following address: 
 Mr. John C. Smith 
 Clarendon Jamaica 
 C/o
P.O. Box 028528 
 Miami, Florida 33152-9617 
 *Note for mail going to Guinea: 
 Use the following address: 
 Mr. John C. Smith 
 C/o of HALCO Mining Inc. 
 National City Center 
 20 Stanwix Street 
 10th Floor 
 Pittsburgh, Pa. 15222-4801 
  

 ORIENTATION – September 1, 2002 Rev 2 
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 MEDICAL/PSYCHOLOGICAL DATA 
 MEDICAL 
 Expatriate and Spouse: The expatriate’s job offer and assignment location visit is
contingent upon the successful passing of a medical examination to determine FITNESS FOR DUTY/Relocation prior to the actual transfer. The expatriate is responsible for making arrangements for their spouse (if applicable) and themselves to be
examined by the Alcoa plant physician (or Alcoa designated physician) prior to transfer. The purpose of the examination and medical tests are to identify any health risks and any course of treatment before taking up residence in the
expatriate’s new country of assignment. 
 The expatriate should schedule their appointments as soon as possible with the company’s plant physician
or clinic. The medical examination should be conducted no earlier than ninety days prior to transfer. The Prudential International Assignment Manager will provide a letter of instructions to the expatriate and the letter and forms that he/she will
give to the attending physician. The letter to the physician summarizes the minimum requirements of the medical evaluation and provides instructions for disposition of the results. 
 The physician should complete the attached medical forms. The Health Status form should be signed by the physician and retained in the employee’s and spouse’s medical records at the host location along with
the physical examination and test results. The physician is also required to complete, sign and fax the Alcoa Global Medical Clearance form to the Prudential International Assignment Manager. A copy should also be retained in the employee’s and
spouse’s medical records file. 
 The expatriate is responsible for ensuring that a copy of the signed Alcoa Global Medical Clearance form is faxed to
the Prudential International Assignment Manager as follows: 
 Prudential Relocation International 
 Attn: Sako Nishida 
 Fax No. 480-778-7096

 Additionally, the physician is to provide a copy of the physical examination and test results to the employee and spouse so they may carry with them to
their new assignment location. 
  

 ORIENTATION – September 1, 2002 Rev 2 
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 Dependents Children: Dependent children who will reside at the host location should also have a medical
examination prior to the move. Arrangements for dependents’ physicals should be made through the family physician in the home country. Employees should take copies of the children’s medical report (s) with them to their new assignment
location. 
 Annual & End of Assignment Medical Examinations: The Company’s policy encourages and provides reimbursement for the costs
incurred for a yearly medical examination for the expatriate and family residing at the host location as well as immediately after the final return to the home country at the conclusion of the expatriate assignment. 
 Expatriates should ensure that copies of the yearly medical examination reports for themselves and their spouse are sent to the physician who conducted the original
medical clearance examination. 
 Upon completion of the expatriate assignment, it is strongly encouraged that the expatriate and family have a complete
medical checkup within sixty (60) days of the repatriation. 
 The Company will reimburse these medical examination costs as well as required
immunizations through the expense account process. The Company will not reimburse medical, surgical or dental treatment, eye refraction, or special medical examinations unless specifically requested by Alcoa’s Medical Department. The expatriate
should first submit the cost of the medical examinations to the Company’s insurance carrier for reimbursement. Expenses not reimbursed through the Company’s medical insurance carrier for a routine examination should be expensed on the
Moving Expense Statement attaching a copy of the insurance carrier’s decision on the non-reimbursed portion of the claim. 
 INTERNATIONAL SOS
MEMBERSHIP 
 International SOS is the leading global health care and assistance company. One phone call connects you to the International SOS network of
more than 2000 professionals in alarm centers, available 24 hours per day, 7 days per week. This service also includes access to international clinics and remote site medical facilities across five continents. Medical and technical support services
are available in more than 30 languages. Your Prudential International Assignment Manager will provide you with an International SOS access card. This access card replaces any previously issued cards. 
 International SOS provides a variety of programs. Alcoa has contracted their services primarily to address the following for international business travelers and
expatriates: 
  

	 	•	 	Referrals to Primary Care Physicians, Physician Specialist, Hospitals and Dentists 

  

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	 	•	 	Emergency and routine medical advice by a physician 

  

	 	•	 	Travel-related information including immunization recommendations, U.S. State Department travel advisories and locations of embassies, consulates, etc. 

  

	 	•	 	Advise if specific prescription medication is available locally 

  

	 	•	 	Arrangement of medical evacuation when necessary and guarantee of payments to providers 

 Expenses for services incurred will be billed to the employee’s sponsoring B.U. However, Alcoa’s annual access fee covers certain limited services such as travel-related information, including immunization
recommendations, U.S. State Department travel advisories, and locations of embassies, consulates, etc. 
 Process for Expatriates 
 In those situations where an expatriate believes they are unable to identify a satisfactory resource in their host location to address health concerns, please call
International SOS. They will evaluate your situation by assessing the medical capabilities at your location and discussing your case with your host location physician (where applicable) and/or your home country/treating physician. SOS will then
recommend the resource for treatment. In those instances where SOS advises the expatriate or family member to have treatment or evacuation to a location different from your host location, they will notify Alcoa. Expatriates should follow this
process to ensure they have adequately assessed their need to receive medical treatment outside their host location. The expatriate can then submit the approved travel expense via an expense statement to the Prudential Expense Analyst, Michelle
Matteson, care of Alcoa Corporate Center, Pittsburgh. Additionally, this process must be followed in order for Alcoa to authorize reimbursements. A small service fee will be charged to your business unit for this service. 
 Contact Information 
 International SOS can be reached by calling the
following numbers: 
  

	 	•	 	Within the United States call 1-800-523-6586. 

  

	 	•	 	Outside of the United States, call the SOS Philadelphia Alarm Center at (215) 245-4707. Collect calls are accepted. Alternatively, you may call the London or Singapore Alarm
Centers. These telephone numbers are listed on the attached wallet-sized SOS card. 

 Identify yourself as an Alcoa employee, including your
business unit’s name. You will be asked a series of questions to better understand your situation. From that point on, your case will be in professional hands and every effort will be made to ensure that the most appropriate action is taken to
assure your comfort and well-being. 
  

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 On-line Country Guides 
 Prior to departure, you may wish to access the International SOS Country Guides, which contain travel health information. Go to: www.internationalsos.com. Select “Members Login” and enter Alcoa’s membership number
(11BCMA000010), which is listed on the back of the SOS Membership card. Select “Country Guides”. Enter the name of the country. 
 Double Click on Icon for SOS Program Brochure 
 

 
  

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 PSYCHOLOGICAL 
 Prior
to transfer, the Prudential International Assignment Manager will arrange for a Counselor from SAIC to conduct an informal interview with the expatriate and spouse. The purpose of the interview is to provide the expatriate and spouse an opportunity
to explore their feelings about the assignment and identify any issues or concerns. Based on the needs of the expatriate and their family, the SAIC Counselor can also arrange for on-going assistance at the new assignment location. 
 Should the expatriate and/or family ever need to consult with an SAIC Counselor while overseas, they should refer to the International Assignment Contact List in the
front of this manual. Also, refer to “Employee Assistance Program for Expatriates” at the end of this section. 
 EMPLOYEE ASSISTANCE
PROGRAM FOR EXPATRIATES 
 In an attempt to provide a smooth transition to the expatriate’s host location but also provide the tools to help embrace
the different experience of living abroad, an overseas assistance program (OAP) has been established to provide EAP services for expatriates in most of Alcoa’s worldwide operating locations. The Company is able to provide this service by
forming a consortium with several other global companies and contracting with a provider, Science Applications International Corporation (SAIC), with extensive experience in international support service programs. 
 SAIC service providers are professional counselors who understand the challenges of managing change in an international environment. SAIC assigns counselors/providers
who have experience in adapting to other cultures, understands expatriate issues and has training in employee assistance issues. Your service provider’s name, location and telephone number is listed on the attached brochure that you should keep
as a reference. You may contact that counselor any time you feel it is indicated. In some instances, the best provider match is in a nearby country. 
 The
service providers/counselors have been instructed to contact all new expatriates within the first 45 days of arrival in your new host country; again within three months; and at six month intervals thereafter; and finally at the time they are
notified of your repatriation. From time to time you will receive a satisfaction survey to complete to help us continually improve services. 
 These
counselors have been contracted to provide the following services: 
  

	 	•	 	Orientation to their services 

  

	 	•	 	Counseling for employee or family members at the host location in areas such as health and safety, aging parents, work-related issues, substance abuse, stress, adjustment,
adolescent/child problems, marital problems, etc. 

  

	 	•	 	Response to crises at home and in the workplace, and 

  

	 	•	 	Repatriation assistance 

 In general, they are available to talk with the
expatriate and family at any time to discuss the above issues. 
  

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 Discussions between the counselor and the expatriates are held in strictest confidence. No names will be reported to
Alcoa. If at any time the expatriate prefers their assigned counselor not make additional follow-up calls, that request will be honored; or if more frequent calls are requested, the counselors will respond to that request. Each family member should
feel free to contact his or her individual counselor at any time. The program is voluntary, but all expatriates and their families are encouraged to participate. The OAP is committed to helping make the most of the overseas experience. Alcoa and
SAIC are committed to making your assignment a success. If there are language barriers or the expatriate prefers to work with a counselor from the home country, these requests can be made through your Prudential IAM in Scottsdale, Arizona.

			
	Double Click on Icon for SAIC Program Brochure	  	

  

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 PASSPORTS/VISAS 
 PASSPORT 
 A passport is a legal identification document issued to a citizen of a country. 
 The employee and each family member need a passport prior to entering the assigned host country. For entry to the host country, it is necessary that each traveler
satisfy the assigned country’s terms and conditions for passports. Employees should follow the normal process within their home country to renew a passport or obtain a new one. Please allow adequate renewal time for expiring passports.

 WORK PERMIT 
 A work permit is work authorization
granted by the host country. The process for obtaining the work permit is unique to its respective country. In most instances, the work permit application is filed with the authorities in country. Requirements for obtaining a work permit vary by
country. Processing times vary for obtaining a work permit and can range from one (1) month to twelve (12) months. 
 VISA 
 An endorsement stamp inside the passport is commonly known as a VISA. It is common for authorities to require the traveler to receive an endorsement stamp inside the
passport. In most instances, you must temporarily release your original passport for visa stamp to be placed inside the passport. Kindly be mindful of your overseas travels when releasing your passport. Cost and processing times vary. 
 The Company will reimburse you for passport and visa expenses you incur through the Moving Expense Statement Process. 
 Please contact your Prudential IAM in Scottsdale, Arizona for further information on passports/visas. 
  

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 PET POLICY 
 SHIPMENT OF HOUSEHOLD PETS 
 The Company will pay the full cost of shipping up to two (2) household pets to or from the host location
provided that the pets are members of the household at the time of acceptance of transfer. 
 For the purposes of this policy, household pets are limited to
domesticated dogs, cats, birds, snakes, turtles, hamsters, and guinea pigs. 
 The expatriate family will have full responsibility for properly preparing
pets for shipment; e.g., immunizations, health certificates, import license, container, etc. The Company will reimburse these costs incurred as well as the shipping. The expatriate must submit a Moving Expense Statement to receive reimbursement.

 Costs incurred for shipping and any required quarantine will be reimbursed by the Company. Pet shipment arrangements must be made through the Prudential
Relocation International. 
 The Company strongly discourages shipping pets to countries that require a quarantine period. Alcoa will pay the full
cost if they are shipped but will bear no responsibility for the health of the pets while in quarantine. 
 NOTE: Each country has its own
regulations/restrictions regarding the entry of animals. For more detail, please contact your Prudential IAM. 
  

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 RELOCATION EXPENSES 
 For your convenience and reference, the following are expenses which might be incurred by you (and the appropriate members of your family) and reimbursed by the Company during your expatriate assignment: 

Expenses in the home location while packing and preparing for the overseas assignment 
 Expenses incurred enroute to the host location 
 Expenses incurred upon arrival at the host location 
 Expenses incurred prior to departure from the host location and enroute to the
home location 
 Keeping in mind that the average expatriate assignment is three years or less, all reimbursements by the Company will be based on customary
and reasonable expenses incurred by the expatriate for items that will ordinarily only be used for three years by the expatriate. The Company will not approve excessive or expensive items not considered customary and reasonable. Because of
the relatively short duration of most expatriate assignments, the Company will not reimburse the cost of service/maintenance agreements. Any such agreements purchased, are the expatriate’s personal financial responsibility. Please see
Exhibit 1 at the end of this section for a list of certain items considered non-reimbursable. 
 Whether the item was charged on a credit card or paid for by
cash, in order to have payment/reimbursement, all costs associated with the following expenses must be submitted on the Moving Expense Statement. Since the procedure for completing the expense statements for your expatriate assignment
differs from the procedure you have been using for normal business expenses, please see the “Moving Expense Statement” section of this Manual for detailed instructions. 
 EXPENSES - PRIOR TO DEPARTURE TO THE HOST LOCATION 
 Required
Interim Living Expenses—Necessary customary and reasonable meals, lodging and transportation at the home location from the time of packing of household goods until the goods are available for delivery to you at the host location.
However, these charges are not reimbursable for any period of time you are on vacation. 
 Car Rental—If your personal car(s) is/are sold
prior to departure from the home country, a special car rental allowance may be provided with prior approval of your Prudential International Assignment. Charges are reimbursed for customary and reasonable (non-luxury) cars only. If you owned two
cars prior to the transfer, the maximum allowance will be one month if two cars are rented or two months if one car is rented. If you owned one car at the time of transfer, the maximum allowance will be one car for one month. However, these
charges are not reimbursable for any period of time you are on vacation. 
  

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 Passport Fees, etc.—Passports, passport pictures, special fast service fees, expenses and
transportation costs to nearest passport office and to consulate (if required) to secure visa and work permits. 
 Immunization
Expenses—As recommended by the Corporate Medical Department and/or required by the host country. 
 Physical
Examinations—For expatriate and spouse as required by the Company to be medically cleared prior to the transfer. Routine physical exam for all other members of family who will be relocating to the host location. (Dental and
vision examinations are not included.) These expenses are to be submitted to your Company insurance carrier first. You can then claim any non-reimbursed charges for these examinations by submitting a Moving Expense Statement with a copy of the
insurance carrier’s explanation of benefits. 
 Host Location Language Lessons—Prior to and after departure from home country
for employee and spouse. Unless there is some special circumstance, the language will be that most commonly used at the host location. Children are not covered as most receive language training as part of their school curriculum at the host
location. Should some special need outlined by the school arise, you should ask the school administrator to state the necessity of language lessons in a letter to you and then forward this document to your Prudential IAM. 
 Attorney’s Fee for UPDATING Will.—This fee is limited to an update only and not for personal estate planning or other related expenses
that would normally be incurred whether or not an overseas transfer is involved. Maximum reimbursement $1,000. 
 Two-Month’s Rental
Cost—If required to break lease on permanent residence. 
 Relocation Allowance—A one-time relocation allowance of $250 per
family ($125 for unmarried status) may be claimed prior to departure. This allowance is for the benefit of buying extra supplies such as medicines, sundries and items not available at the host location. This allowance will also apply to any
subsequent expatriate assignments in a different country provided one year has expired in each assignment. (No supporting receipts are required.) 
  

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 Climate Clothing Allowance—This is a one-time only allowance provided to the expatriate, spouse and
qualified dependents accompanying the expatriate to a host location which results in moving from a warm-climate location to a cold-climate location. This Allowance is $2,000 for each adult and $1,000 for each child up to age 18. Short Term
Assignments are eligible for half of the allowance. 
 The warm-climate locations are designated as: 
  

			
	Australia	  	Mexico
	Brazil	  	Surname
	Guinea	  	Trinidad
	Hong Kong	  	Venezuela
	Jamaica	  	

 The cold-climate locations are designated as: 
  

			
	Belgium	  	Japan
	Canada	  	The Netherlands
	France	  	Switzerland
	Germany	  	United Kingdom
	Hungary	  	United States EXCEPT Alabama, Arizona, California (Southern only), Florida, Georgia, Louisiana, Mississippi, New Mexico, North Carolina, Oklahoma, South Carolina, and Texas

 (No supporting receipts are required.) 
 EXPENSES - ENROUTE TO THE HOST LOCATION 
 Transportation Expenses—Taxi fares and Business Class air
fare, most direct route, for expatriate and all qualified dependents from the home country to the host country. EXCEPTION: Coach air fare must be utilized for travel to/from the U.S. and the Caribbean or Canada. (Reference: “Home Leave”
section) 
 Other Enroute Expenses—Airport taxes, departure taxes, snacks, etc. For excessively long trips, one night stop-over expenses
for meals and lodging en route to and from certain countries such as Australia, Japan, Hong Kong, China, Africa, etc. This, of course would depend upon the home and host countries involved. 
 EXPENSES - UPON ARRIVAL AT THE HOST LOCATION 
 Required Interim
Living Expenses—Necessary customary and reasonable meals, lodging and transportation at the host location from the time of your arrival at the host country until the household goods are available for delivery to you at the host
location. However, these charges are not reimbursable for any period of time you are on vacation. 
  

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 Car Rental—If your personal car(s) is/are sold prior to departure from the home country, you are
requested to limit automobile rental prior to departure to no more than 4 weeks. A special automobile rental allowance may be provided at the host location with prior approval of your Prudential IAM, Scottsdale, Arizona. Charges are reimbursed for
customary and reasonable (non-luxury) cars only. If you owned two cars prior to the transfer, the maximum allowance will be one month if two cars are rented or two months if one car is rented. If you owned one car at the time of transfer, the
maximum allowance will be one car for one month. However, these charges are not reimbursable for any period of time you are on vacation. 
 Appliances, Electronics and Miscellaneous Items—With regard to washers, dryers, refrigerators, TV’s, VCR’s, stereos, vacuum cleaners, microwaves, etc.; necessary window treatments and an occasional area rug (if
required), lawn mowers, snow blowers, etc., the purchase of these items will be reimbursable only if: 
  

	 	1.	They are not provided in workable/good condition at the host country residence  

 OR 
  

	 	2.	The home country appliances/electronics cannot be adequately converted for host country use by the installation of adapters/converters. 

  

	 	3.	The items were owned by the employee in the home country prior to the move and stored by documentation on the Valued Inventory List. 

  

	 	4.	The items were not owned by the Expatriate in the home country prior to the move and are deemed are necessary in the host location (air conditioner etc.) 

If it is absolutely necessary to replace appliances/electronics, the Company will reimburse only customary and reasonable replacement costs. 

All items purchased by the Company for the expatriate’s use are considered the Company’s property and it is expected they will be maintained in good
condition. Upon the repatriation of the employee, these items will then become part of the Company’s inventory. If, however, the host location does not require these items, it may sell them to the expatriate at a depreciated cost of 10%
(this rate is subject to change) per year of the original purchase price. 
 The cost of adapters, converters, appliances, electronics, window
treatments, area carpets, etc. are usually reimbursed via the Moving Expense Statement. 
 Automobile Purchase Expenses—Although the
purchase of automobiles is discussed in detail in the AUTOMOBILE section of this Manual, the cost of registration fees, sales tax, documentation fees, initial license plates for the host country, etc. for up to two automobiles is reimbursable. It
should be noted that the cost of home country license, etc., continues to be the expatriate’s personal financial responsibility. 
  

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 Physical Examination—Once each year the expatriate and all qualified dependents living at the
host location should obtain a general physical examination. (Dental and vision examinations are not included.) These expenses are to be submitted to your Company insurance carrier first. You can then claim any non-reimbursed portion of the routine
examination costs by submitting a Moving Expense Statement with a copy of the insurance carrier’s statement of covered services. 
 Annual
Education Allowance for Qualified Dependents—Please see the EDUCATION ALLOWANCE section of this Manual for details. 
 EXPENSES—PRIOR TO
DEPARTURE FROM HOST LOCATION 
 Required Interim Living Expenses—Necessary customary and reasonable meals, lodging and transportation
at the host location from the time of packing of household goods until departure from the host location. However, these charges are not reimbursable for any period of time you are on vacation. 
 Car Rental—If your personal car(s) is/are sold prior to departure from the host country, a special car rental allowance may be provided with prior
approval of your Prudential IAM, Scottsdale, Arizona. Charges are reimbursed for customary and reasonable (non-luxury) cars only. These charges are not reimbursable for any period of time you are on vacation 
 Transportation costs associated with return to the home or new location. 
 EXPENSES ENROUTE TO AND AFTER ARRIVAL IN HOME COUNTRY 
 Upon arrival at the home country location, all expenses (except the physical
examination outlined below) must be handled according to home country location procedures. These expenses should not be sent to the Prudential Expense Analyst, Michelle Matteson. 
 Upon arrival in the home country/new assignment, the expatriate and all qualified dependents who had lived at the former host location should obtain a general physical
examination. (Dental and vision examinations are not included.) These expenses are to be submitted to your Company insurance carrier first. You can then claim any non-reimbursed portion of the physical examination costs by submitting a Moving
Expense Statement with a copy of the insurance carrier’s statement of covered benefits attached. This Statement should be sent to the Prudential Expense Analyst, care of Alcoa Corporate Center, Pittsburgh. 
 It should be noted that household and personal effects which are stored in the home country must be removed from storage and accepted as the employee’s
responsibility within 12 months of the expatriate’s return date. Storage for up to a maximum of 90 days only will be to the Company’s expense. Any storage costs after the 90-day period is the employee’s personal financial
responsibility. 
  

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 Retirement from an Overseas Assignment 
 The retired employee and his/her family will be returned from the host location to the point of origin in the home country providing they so request within the twelve-month period immediately following retirement.

 In addition, since the provisions of the Transfer and Relocation Plan are not applicable to retired employees, a payment in the amount of $5,000 will be
made in lieu of Transfer and Relocation benefits. Therefore, this amount of $5,000 will be included in the last regular paycheck prior to the date of retirement in lieu of any interim living expenses such as meals, lodging, registration of cars and
sales tax, reconnecting appliances in the home country, etc. This payment can be considered compensation for service rendered during the global assignment 
 It should be noted that household and personal effects which are stored in the home country must be removed from storage and accepted as the employee’s responsibility within 12 months of the expatriate’s return date. Storage
for up to a maximum of 90 days only will be to the Company’s expense. Any storage costs after the 90-day period is the employee’s personal financial responsibility. 
  

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 EXHIBIT 1 
 NON-REIMBURSABLE EXPENSES 
 (This list is not intended to be all-inclusive) 
  

	 	•	 	ENTERTAINMENT: 

 Clubs and Activities
(fitness/health, social, etc) unless approved as a business expense in which case the cost should be submitted on a white T&E Express Business Expense Statement 
 Magazine 
 Movies 
 Newspapers 
 Videos—whether rented or purchased. Check hotel bills for these & delete the cost
if Expatriate has expensed it. 
  

	 	•	 	EXCESS BAGGAGE: 

 Allowances for both checked and
carry-on baggage vary from airline to airline and from point of origin to point of destination. Any charges for excess baggage will be the Expatriates personal financial responsibility. 
 OR 
 The Company will pay the fee of excess baggage in lieu of air shipment,
provided the cost does not exceed the fee/charge of the allowable air shipment. 
  

	 	•	 	EXCESSIVE MEAL, HOTEL, ETC. CHARGES 

  

	 	•	 	INTERIM LIVING EXPENSES: 

 If Expatriates grocery
shops instead of eating meals at restaurants—however, they cannot expense both for the same period of time 
 Do not cover Cigarettes,
Tobacco Product, Liquor, Diapers 
  

	 	•	 	INSURANCE ON PERSONAL PROPERTY 

  

	 	•	 	LAWN CARE FOR NON ALCOA HOUSING: 

 Additions of
flowers, shrubs, trees etc. 
 Lawn Maintenance (grass cutting, pruning, etc.) 
 Removal of leaves 
 Removal of snow

  

	 	•	 	MOVING BILLS: 

 Expatriate should not be expensing
any moving/storage bills since those charges flow from Prudential to Alcoa via the invoice route 
  

	 	•	 	RENTAL CARS: 

 Beyond the period of time specified
in the Orientation Manuals 
  

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	 	•	 	SERVICE/MAINTENANCE AGREEMENTS FOR APPLIANCES AND ELECTRONICS 

  

	 	•	 	TRAVEL INSURANCE 

  

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 EXHIBIT 2 
 EXPENSES - PROCEDURES FOR COMPLETING MOVING EXPENSE STATEMENT 
 Prior to, during and immediately upon completion of the expatriate
assignment, certain expenses listed in the “Relocation Expenses” and certain other sections of this Manual are reimbursable. However, they are only reimbursable to the extent outlined in the section of this Manual where they are described.
Therefore, the expatriate should carefully review the section involved prior to making any expenditures. Since this Manual specifies that only “customary and reasonable” expenses are reimbursable, any expenditures outside this range will
have to be brought to the attention of your business unit. 
 All expenditures for which there is to be a reimbursement, whether they were paid for by cash,
corporate credit card or personal credit card must be expensed through the Moving Expense Statement (SP3848). There cannot be any reimbursement of relocation expenses (this includes airline tickets) that do not appear on this Expense
Statement. 
 It should be noted, however, that any or all business expenses should not be submitted on the Moving Expense Statement but
should, instead, be processed in accordance with the host country location procedures. Any Statements associated with Business Expenses should not be sent to this office. Additionally, any forms issued by Prudential Relocation should be
returned to them. 
 Now that Shared Services reimburses cash expenses twice a month and MASTERCARD charges once a month, (Schedule of Shared Services
closing dates appears as an attachment to this letter), to insure timely reimbursements of your expenses, all Moving Expense Statements should be submitted in accordance with the following procedures. When we receive Statements that are not in
accordance with procedures, it takes additional time on your part and ours in getting the issues resolved. This can result in delays in your cash reimbursements and MasterCard late charges, penalties, etc. for you. As you know, these charges are
not reimbursable. If we submit Statements to Shared Services that are not correct in every way these Statements are returned to us. Also all Statements are subject to the Expatriate Administration Group’s review and/or by Alcoa’s
Audit Department. 
 The following procedure pertains to expenses associated with your expatriate assignment only: 
  

	 	1.	All requested information must be completed (Social Security Number, number of dependents for whom expenses are being reported on the form, etc.) 

  

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	 	2.	A clear, brief explanation in English for each entry is required to establish the exact purpose of the expense. 

  

	 	3.	An original receipt for all entries of $25 or more must be attached to the Statement. All Statements expensing airline fares associated with the expatriate assignment must be
accompanied by the original airline ticket receipt—except in the case of Advanced Purchases. When an Advanced Purchase of an airline ticket is made, it is the one time Shared Services will accept a copy of the airline ticket; however
please write “ADVANCED PURCHASE” next to the entry of the airline expense. Then, at the completion of the trip, when the original receipts are available, please send them DIRECTLY to Shared Services with a note referencing the Statement on
which the ticket was expensed. 

  

	 	4.	For tax reasons and other requirements all amounts in the “Total” columns and “Grand Total” box must be in US Dollars. 

 Note: If entries are not in US Dollars and in English the Statement will be returned to the expatriate with an additional request that this be done.

  

	 	5.	If a number of receipts were involved, it would be helpful if the receipts are numbered and the corresponding entries on the Statement indicate these numbers.

  

	 	6.	The “Charge Code” section at the bottom of the Statement should be completed with your UEC Code. If you do not know this code, it will be written on the Statement by this
Department for your future reference. 

  

	 	7.	Please sign all Statements and indicate by checking the appropriate box, whether you want any cash reimbursements credited to your bank account. 

  

	 	8.	Please mail original Moving Expense Statement along with two copies of moving expense statement and two copies of receipts. This will greatly expedite processing
especially when received close to T&E Shared Services cut off dates. 

 Assuming the Statement is in accordance with the above, it will be
approved by the Prudential Expense Analyst, Michelle Matteson, care of Alcoa Corporate Center, Pittsburgh and sent to Pittsburgh Accounting (Shared Services) for processing. A copy of the approved Statement will be sent to you. 
 In those rare instances where the Moving Expense Statement should be returned to the expatriate for local processing, “RETURN FOR LOCAL PROCESSING”
should be written across the top of the Statement in bold letters. 
  

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 In those rare instances where a Moving Expense Statement has already been processed at the expatriate’s local
office, for tax purposes, a copy should be sent to this office with “INFORMATION COPY” written in bold letters across the Statement. 
 If/when expenditures are for a long period of time and/or the amount of money involved is substantial, you may want to submit a Statement every two weeks, instead of accumulating expenses for longer intervals and run the risk of problems
with payment of your MasterCard charges. 
 PLEASE DO NOT FAX STATEMENTS OR SEND THEM ELECTRONICALLY. Many expatriates are now preparing their
Statement on their computers, which is fine, provided they are sent through the mail with the original receipts and original signature. Since Shared Services and our auditors require original receipts, faxed or electronically sent copies will not
expedite reimbursements but, instead, only delay reimbursements since we will have to contact you and request that you send original receipts. 
  

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 T&E SHARED SERVICES CLOSING DATES 2002 
  

					
	 Shared Services Cutoff
 Date
for
 Cash Reimbursements*
	  	 Cash Pay Date
	  	 Shared Services Cutoff
 Date for
 MASTERCARD Payments**

	 January 10
	  	January 15	  	
	 January 25
	  	January 30	  	January 30
			
	 February 12
	  	February 15	  	
	 February 22
	  	February 27	  	February 27
			
	 March 12
	  	March 15	  	
	 March 22
	  	March 27	  	March 27
			
	 April 10
	  	April 15	  	
	 April 24
	  	April 29	  	April 29
			
	 May 10
	  	May 15	  	
	 May 24
	  	May 30	  	May 30
			
	 June 11
	  	June 14	  	
	 June 24
	  	June 27	  	June 27
			
	 July 10
	  	July 15	  	
	 July 25
	  	July 30	  	July 30
			
	 August 12
	  	August 15	  	
	 August 26
	  	August 29	  	August 29
			
	 September 10
	  	September 13	  	
	 September 24
	  	September 27	  	September 27
			
	 October 9
	  	October 15	  	
	 October 25
	  	October 30	  	October 30
			
	 November 12
	  	November 15	  	
	 November 21
	  	November 26	  	November 26
			
	 December 10
	  	December 13	  	
	 December 23
	  	December 30	  	December 31
			
	 January 10 2003
	  	January 15 2003	  	

  

	*	The Shared Services cutoff date for cash reimbursements is the last day shared services will accept Expense Statements for the Cash Pay Date indicated. (This type of reimbursement
also includes payment to use when you have used personal credit cards for company 

  

	**	The MasterCard cutoff date is the last date Shared Services will process MasterCard receipts. Their payments to MasterCard will go out the following working day.

  

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 As in the past and as indicated above, Shared Services will continue to make MasterCard payments at the end of the month
only. Because the MasterCard penalties and late charges are not reimbursable to any employee, we encourage you to submit expenses as they occur. 
 Unfortunately, there are times when although we have submitted Statements to Shared Services prior to cutoff date, they could not be processed due to Shared Services’ high work volume. We have no control over this. Therefore, to avoid
missing the cutoff dates your moving expense statements should be received by the Prudential Expense Analyst, Michelle Matteson, 5 working days prior to Shared Services cutoff dates. This will allow adequate time for review and any queries
related to your statement to be resolved timely. 
  

 ORIENTATION – September 1, 2002 Rev 2 
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 TAXES 
 PERSONAL INCOME TAX 
 Liability for income taxes is one of the most important factors affecting expatriate compensation. Because home country
and foreign tax rulings are complex and change frequently, Alcoa will pay for the services of PricewaterhouseCoopers, L.L.P. (PwC), to prepare the expatriate’s actual U.S. and host country tax returns and/or hypothetical U.S. tax calculation
while the expatriate is overseas, the year of repatriation, plus one additional year. If the expatriate is transferred and arrives overseas between January 1st and February 28th of a given year, Alcoa will pay the fees to
prepare the previous year’s U.S. tax return. If an expatriate is transferred and arrives March 1st or
later in a given year, Alcoa expects the employee has had ample time to complete the previous year’s tax return. Since this return will have no foreign complications, costs for tax preparation will be to the employee’s own personal
account. 
 TAX RETURN PREPARATION (U.S. and HOST COUNTRY) 
 For those expatriates returning to the U.S. on the active payroll, Alcoa will provide tax return preparation for the U.S. federal and state tax returns for the year of repatriation plus on additional year. In those instances where an
expatriate has returned to the U.S. on the active payroll early in a given year and all anticipated foreign adders due to the foreign assignment have been included in the W-2 for that year of repatriation, the Company may elect to exclude the
expatriate from the Alcoa Tax Equalization and tax return preparation programs for the additional year. This determination of the Company will be based on the availability of foreign tax credits. Alcoa will also provide host country tax preparation
for all years required. For those expatriates returning to the U.S. on inactive status or retirement, Alcoa will provide host country and U.S. federal and state tax return preparation for the last year of expatriate status, whether a full or split
year, plus one additional year. The expatriate on inactive status or retirement may, however, elect out of the Alcoa Tax Equalization Program for this one additional year. If this election is made, the Company will not provide tax preparation
service. 
 However, the company retains the option to require employees who fall under the active, inactive, and/or retirement statuses to remain in the
Equalization and tax preparation programs under the following scenarios: 1). If company-paid foreign tax credits are available and can be utilized, 2). If there is a tax adjustment payback in the preceding tax year. Under option two, Alcoa may be
due a refund of foreign taxes caused by a reduction in the proceedings year’s income. Such a situation is likely to occur when the assessment of foreign taxes is delayed (i.e Germany). As such, under these scenarios, Alcoa may be inclined to
keep an individual in the program as long as the benefit exceeds the associated cost. Alcoa, through consultation with PricewaterhouseCoopers, will make this decision on a case-by-case basis. 
  

 ORIENTATION – September 1, 2002 Rev 2 
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 TAX EQUALIZATION 
 Expatriates compensated via the Alcoa U.S. dollar payroll are covered under a tax equalization policy. In simple terms, this policy obligates the expatriate employee to pay the approximate level of U.S. federal taxes as if the expatriate
were a U.S. citizen employed and resident in the U.S. The policy obligates Alcoa to reimburse the expatriate employee for any U.S. federal or host country tax liability in excess of the hypothetical tax. If however, the actual worldwide tax is lower
than the tax the expatriate would have paid in the U.S., the expatriate will be held to the hypothetical tax. 
 Those expatriates who are neither U.S.
citizens nor U.S. permanent resident aliens (green card holders) will be responsible for paying to Alcoa a “hypothetical” federal, state and local (if applicable) tax obligation as though they were U.S. citizen employees. U.S. taxes in
excess of the hypothetical tax will be reimbursed by Alcoa. 
 The method of implementing this policy is to calculate a “hypothetical” U.S. federal
tax liability, excluding taxable income resulting solely from the foreign assignment. An individual will also be permitted hypothetical itemized deductions, computed as the greater of: 
  

	 	a)	standard bracket amount; 

  

	 	b)	14% of hypothetical gross earned income; 

  

	 	c)	actual itemized deductions adjusted for Alcoa reimbursed deductions such as moving expenses, loan origination fee, etc. 

  

	 	d)	in the case of part-year expatriates, the actual deductions as in (c) above incurred during the period of U.S. residency plus a percentage, as in (b) above, of
hypothetical gross earned income prorated for the period of foreign residency. 

  

	 	e)	in the case of an expatriate’s last year in the tax program when the expatriate has been back in the U.S. for the full year, only actual itemized deductions will be allowed as
in (c) above. 

 Personal exemptions and child tax credits will also be allowed in the hypothetical tax calculation based on the
hypothetical income. 
 To the extent actual worldwide tax liabilities exceed the “hypothetical” calculation, reimbursement adjustments or payments
will be made to the employee. However, depending on the host location involved and the expatriate’s level of income and filing positions, a situation may return where the actual U.S. federal tax liability is less than the calculated
“hypothetical” tax liability. In this event, the expatriate will be required to pay to the Company the difference between the two amounts within 60 days. 
 At the close of each tax year when the actual U.S. and foreign taxes have been determined, a comparison is made between the hypothetical tax the expatriate would have paid in the U.S. on wages and investments and the actual out-of-pocket
tax costs incurred. This calculation is the “Alcoa Tax Adjustment.” The expatriate’s out-of-pocket 

  

 ORIENTATION – September 1, 2002 Rev 2 
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tax cost is comprised of the hypothetical tax withheld monthly, estimated payments deemed necessary by PwC and paid by the expatriate and taxes paid directly
to the IRS. If the actual expense is greater than the hypothetical tax, a payment is due the expatriate, less any gross-ups previously paid by the Company and loans advanced during the tax year. 
 In the employee’s final year in the expatriate program, any Alcoa tax adjustment payment due the employee will be grossed-up to compensate the individual for the
additional federal and state taxes resulting from the payment being included in the current year’s income. 
 If the actual tax expense is less than the
hypothetical tax, the expatriate must pay back or reimburse the Company the difference between the actual and the hypothetical taxes. Should an expatriate be in a tax payback position, the expatriate will be required to sign a Tax Payback/Promissory
Note. (See Exhibit 1 for an example.) The full payment of the tax payback will become due within 60 days of receipt of the final tax equalization prepared by PwC establishing the expatriate’s tax liability, less any expected IRS
refund. Upon receipt of the IRS check, the refunded amount including IRS interest paid, must be paid to the Company. The employee will be notified of the exact due date of the payback by letter from Prudential IAM. 
 EXPATRIATE EXPENSES 
 Expatriate expenses are defined as any
reportable Company-paid expenses directly attributable to an expatriate assignment. These may include such items as reimbursements on the sale or purchase of a home, meals and interim living expenses associated with the expatriate’s relocation,
passport and visa fees for the spouse and children, driver’s license expenses, annual physical examinations (after they have been submitted to the insurance company), language lessons for the spouse, student tuition, home leave expenses and
travel allowances, personal use of a Company-provided automobile, and various location expenses, such as Company-paid housing costs, housing taxes, utilities, telephone expenses, security services, and location income taxes, less the
expatriate’s hypothetical housing and tax deductions. The previous month’s figures should be reported to your Prudential IAM by the 10th day of the following month by the location Expatriate Administrator. Alcoa Payroll in Pittsburgh will impute the monthly expenses into the expatriate’s W-2 wages. These expenses will be treated
as foreign adders when PwC prepares the annual tax adjustment and the expatriate will, therefore, not bear the additional taxes as a result of these expenses running through the W-2. However, FICA (U.S. Social Security) will be withheld on these
amounts each month. As a result, the expatriate will reach the maximum FICA contribution earlier in the year. The smaller percentage for FICA-Medicare, with no wage ceiling, will be tax equalized by PwC at the time the tax adjustment is prepared.
The Medicare tax the employee is held responsible for will not include foreign adder income. 
  

 ORIENTATION – September 1, 2002 Rev 2 
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 U.S. STATE TAX TREATMENT 
 State tax laws vary greatly. During the foreign assignment, the assignees generally break the state residency, and accordingly, the expatriate typically saves state and local tax on the hypothetical income. Generally wages and tax
equalizations paid to the expatriate while overseas is, therefore, free of state and local taxes. 
 As previously stated, Alcoa will authorize the
preparation of federal and state tax returns for the years of foreign residency, the year of repatriation plus one additional year. In addition, payments made after reestablishing state residency that are generally considered to be “foreign
adders” such as relocation payments, FSP, cost of living, foreign taxes, etc., may run through the employee’s payroll. These payments may be subject to state income tax. Alcoa will gross-up and pay the state tax on the foreign adder income
at the time of payment. 
 CAPITAL GAINS TAX 
 FROM
SALE OF PRINCIPAL RESIDENCE 
 Under the terms of the current capital gains tax provisions, where the expatriate decides to sell their principal
residence, they may not incur any capital gain tax up to $500,000 of gain for married person filing jointly and $250,000 for single or married person filing separately. To qualify for this provision, the expatriate must have owned and lived in the
principal residence for two out of the last five years from the date of sale. Even if the expatriate does not meet this condition, it is still possible for qualify for a pro rated exclusion amount. For example, if assignee owned and lived in the
house only for twelve months, they would still get 50% of the gain exclusion (twelve months out of twenty four months). That is, $250,000 of gain (married person filing jointly) and $125,000 (single or married person filing separately). Accordingly,
it is expected that no capital gain tax would arise from the sale of the principal residence. 
 If the expatriate chooses to keep the house, and later sell
it during the assignment period, they may disqualify the conditions under the gain exclusion provision. Accordingly, the expatriate should consult with Alcoa prior to their decision to sell the house if they initially choose to keep the house.

 TAX SERVICE 
 The intent of Alcoa’s policy to
provide tax preparation service is to relieve the expatriate of the time-consuming and burdensome task of preparing returns that are often in an unfamiliar language and dealing with tax laws in both the U.S. and the host location that are more
complex than ever before. 
 Expatriates are provided with the opportunity to use a PwC tax consultant for the preparation of foreign, U.S. federal and state
income tax returns and the tax equalization calculation. U.S. returns will be prepared by PwC Pittsburgh. The information necessary for preparation of the U.S. returns should be mailed to their office 

  

 ORIENTATION – September 1, 2002 Rev 2 
 Page 112 of 120 

 
in Pittsburgh. Information not received by PwC from the expatriate in a timely fashion to allow them to prepare the return and equalization, and thereby
resulting in penalties and interest will be to the account of the expatriate. PwC Pittsburgh, will also prepare the tax adjustment calculation. Host country returns will be prepared by the PwC office at the host location. 
 The Company will only pay PwC for tax advice relating to the treatment of expenses directly attributable to the expatriate and will not pay for personal tax
advice, estate planning, advice on investments, etc. These are considered personal investment decisions and the expatriate should hire a personal tax advisor if this advice is required. 
 COST OF TAX PREPARATION SERVICE 
 The Company will assume the annual
cost of preparing one host country, one U.S. federal and one state (if required) tax return and the tax equalization calculation. In accordance with IRS regulations, income will be imputed in the expatriate’s W-2 equal to the estimated fringe
benefit received for the personal portion of the tax preparation services. A like amount will be taken as a deduction if deductions are itemized and are not limited on the tax return. Any additional tax that results from this imputed income will be
assumed by the Company through the tax equalization program. 
 PERSONAL INVESTMENTS 
 In the event that an expatriate or spouse dies while on a US assignment, Alcoa will have PwC determine what the estate taxes would have been had the employee died while in their home country. The amount of difference
would be grossed up and paid to the estate to a maximum of US $1,000,000. 
 TAX FORMS CLAIMING FOREIGN RESIDENCY 
 Please complete the statement claiming bona fide residence or physical presence (Form 673) upon your arrival overseas and return the form to your Prudential
International Assignment Manager in Scottsdale, Arizona, USA. Please complete only that section which describes the condition under which you are claiming foreign residency (as described below). This document is for the Company’s
files and will be sent to the expatriate yearly for completion. The purpose of this form is to allow Alcoa to discontinue your U.S. federal tax withholding deduction from your Alcoa paycheck. 
  

 ORIENTATION – September 1, 2002 Rev 2 
 Page 113 of 120 

 Bona Fide Residence Test 
 Residence in a foreign country for an uninterrupted period that includes a full taxable year (January 1 through December 31) is required to meet this test. 
 An individual qualifies for a partial year only after establishing bona fide residence status for a full calendar year in the following year. For example, the latter qualification relates back to the initial
establishment of residence in a foreign country on November 10, 2001, after the expatriate subsequently qualifies as a bona fide resident for the calendar year of 2002. The expatriate is then considered a bona fide resident for the period from
November 10 through December 31, 2002. The individual would qualify as a bona fide resident for the full year or any portion of 2003 or subsequent years spent in a foreign country until residency in that country ends. 
 The determination of an expatriate’s residence is based on the facts of each case: 
  

	 	•	 	Intentions about length and purpose of presence in host location are important. 

  

	 	•	 	Payment of income tax to the host country in which an individual is employed is a positive factor. The fact that no foreign income tax is paid should not be a negative factor,
unless the expatriate submitted a statement of non-residence to avoid foreign tax. 

  

	 	•	 	The decision not to sell the U.S. home nor move the family abroad is not, in itself, sufficient to deny the expatriate foreign resident status. 

 An expatriate who qualifies as a bona fide resident of a foreign country retains the status, regardless of time spent on business or vacation in the U.S. 
 Physical Presence Test 
 An expatriate’s presence in a host
country or countries for 330 days during any consecutive 12-month period is required. For this purpose, a day is defined as a full 24-hour period. For example, if you are traveling and any part of a day is spent in the U.S., that day will not
qualify as a foreign day. If you are merely passing through the U.S. on a trip between foreign countries, that day will be considered a foreign day. 
 Physical presence in a host country need not be solely for employment purposes; foreign vacations are included in the 330-day period. 
 Because the
requirements of the physical presence test are rigid, detailed records of travel to and from the U.S. are necessary to prevent unintentional disqualification. These detailed records are also necessary in case of an IRS examination. 
  

			
	Double Click Icon to view Alcoa Expatriate Tax Guide Booklet	  	

  

 ORIENTATION – September 1, 2002 Rev 2 
 Page 114 of 120 

 EXHIBIT I 
 TAX PAYBACK PROMISSORY NOTE 
  

			
	 $                                      
                                        
                      
	  	                                      
                                   ,
            

 FOR VALUE RECEIVED, the undersigned promises to pay Aluminium Company of America (the
“Company”), at its offices at 201 Isabella Street, Pittsburgh, Commonwealth of Pennsylvania, or such other place as the holder hereof may direct in writing, the principal sum of
                     Dollars in lawful money of the United States of America. Payment of this note satisfies the undersigned employee’s
reimbursement for his/her 2001 “hypothetical tax” under Alcoa’s tax equalization policy as computed on the above date by a representative of PwC. Such payment is due and payable in full, within 60 days of receipt by the
undersigned employee of the final tax equalization computation by PwC establishing tax liability for 2001 unless you have claimed an IRS refund. In that event, the refund portion of the payback is due upon receipt of the refund. However, in the
event that any of the following occur prior to receipt of the refund: 1) the termination of the undersigned employee’s employment with the Company, 2) the retirement of the undersigned employee from the Company or 3) the death of
the undersigned employee, the note is due and payable immediately. Any remaining balance of the payback beyond the refund portion is due within 60 days. 
 In the event that full payment of the principal sum stated above is not repaid within the 60-day period as described herein, interest shall be charged on the remaining balance of the debt at the current maximum rate
allowable under Pennsylvania law. The undersigned employee hereby authorizes three (3) equal monthly payroll deductions to repay, in full, the remaining debt. 
 The undersigned hereby authorizes the holder of this note to enter an appearance in his behalf and as his attorney to confess judgment against him after default in any court of record for any amount due on this note,
together with costs of the suit and reasonable attorneys’ fees. 
 This tax payback promissory note supersedes any and all prior 2001
tax payback promissory notes. 
  

	
	
	   
	 Employee Signature

	
	   
	 Spouse Signature

  

 ORIENTATION – September 1, 2002 Rev 2 
 Page 115 of 120 

 VACATION HOME LEAVE ALLOWANCE 
 ALLOWANCE 
 The Company provides a tax-free cash benefit to expatriates annually. This payment is referred to as the
Vacation Home Leave Lump Sum Allowance and is equal to the amount required for the expatriate, spouse and other eligible dependents living at the host location to travel from that location to the Point of Origin and return, once a year. It is
not necessary to submit an expense statement for this payment; The expatriates and qualified dependents may travel wherever they wish with their payment. 
 For those expatriates who are being transferred to and are physically located at the host location anytime during the period January 1 through July 1 of a given year, the Allowance will be included in the
salary check of the first month of transfer or the following month. 
 Thereafter, each year the Allowance will be paid every January unless we have been
advised that the expatriate’s assignment will be concluded prior to July 1 of that year. 
 This travel allowance is based on 85% of coach class
airfare via the most direct route except as follows: the allowance for travel to/from the U. S. and the Caribbean or Canada is based on coach class air fare. The allowance is based on information we obtain from Alcoa’s current travel agent,
since it would not be possible for us to contact the various airlines throughout the world. Because this is a lump sum, tax-free payment, it has been modestly discounted from full fare. However, should your actual ticket fare from your host city to
your point of origin and return, most direct route, business class (coach where applicable) be higher than the amount reported to us by the Alcoa travel agent, the difference can be expensed on the Moving Expense Statement provided the original
airline ticket receipts are attached. 
 Children under the age of two qualify for “infant’s fare” (if any); children ages two through eleven
qualify for “children’s fare” and children twelve and over qualify for “adult’s fare.” 
 Included in the Vacation Home Leave
Lump Sum Allowance is a modest travel allowance for miscellaneous expenses enroute. 
 POINT OF ORIGIN 
 The Point of Origin used for this calculation is the approved location designated by the Expatriate on the “Checklist Form”. Other locations, that may be
acceptable as the Point of Origin, are: 
  

	 	1.	The community where immediate members of the family reside; or 

  

	 	2.	The community where the expatriate or expatriate’s family has a vacation home 

  

 ORIENTATION – September 1, 2002 
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 OTHER INFORMATION 
 When PwC prepares the annual tax equalization, the total Vacation Home Leave Allowance will be included; and if any additional taxes are required, they will be paid by Alcoa. 
 It should be noted that the Company’s Travel and Accident Insurance is only extended to employees while traveling on business for the Company and is not applicable to any type of vacation home leave travel.

 All qualified expenses resulting from trips made by dependent school/college children not living at the host location must be submitted on the Moving
Expense Statement with accompanying original airline ticket receipts. (Please see the “Education” section of this Manual.) 
 VACATION TIME 
 Vacation time will be twenty workdays during each calendar year of an expatriate assignment. 
 Although employees are encouraged to take vacation during the calendar year in which the vacation is earned, employees may carry over a maximum of one week (five work
days) of their vacation from one year to the next if they obtain their manager’s approval. If an employee decides to carry over any vacation time and apply it to the next year, the employee should notify the manager in writing as soon as
possible but prior to December 1 of the applicable year. There is to be no accruing or build up of vacation time beyond the one week maximum in any given year. 
  

 ORIENTATION – September 1, 2002 
 Page 117 of 120 

 REMINDERS 
 The Reminder List was developed to help prompt expatriates, especially those moving to their first global assignment, at what point the expatriate might want to initiate aspects of the transfer as well as to trigger those items that one
might want to accomplish when arriving at the new host location and ongoing issues. 
 Your Prudential International Assignment Manager will conduct a
review/ orientation with you and your spouse for the purpose of providing details regarding the various expatriate policies/programs. You will most likely travel to the host location for the purpose of discussing the position, visiting schools and
selecting a place to live. After you have visited the host location and accepted the transfer, you will probably want to start on these various aspects of the transfer. The following are guideline suggestions. 
 PREPARING FOR YOUR MOVE 
  

	 	1.	Make sure you have a valid passport for yourself and all family members who will accompany you on the assignment. Passports should have at least one remaining year, preferably two,
before you leave your home country. If not, apply for renewals. Refer to PASSPORT/VISA section of your orientation manual. 

  

	 	2.	Complete and return work visa documents as outlined in the instructions given by your new host location administrator or your Prudential Assignment Manager or in some cases both, if
required. 

  

	 	3.	Make sure you and your spouse (if applicable) have completed your medical exam and required tests as outlined in the documents sent to you by your Prudential International
Assignment Manager. Additionally ensure that a copy of the Alcoa Global Medical Clearance Form is completed and signed by Alcoa plant physician (or designated physician) then faxed to your Prudential International Assignment Manager.

  

	 	4.	Do any necessary follow up with the host location school for any required. 

  

	 	5.	documents they requested and to ensure a space for your children in that school. 

  

	 	6.	Decide what you will do with your personal residence in your home country and follow up on any details to ensure a timely transition. 

  

	 	7.	Contact your Prudential IAM to make tentative plans for the move. Refer to the HOUSEHOLD PACKING, SHIPPING AND STORAGE section of your orientation manual. 

 

	 	8.	Make a plan for selling your personal automobile(s). 

  

	 	9.	Make sure you have met with your PricewaterhouseCoopers contact person in your home country for any tax planning initiatives. 

  

	 	10.	Ensure you and your family have updated immunizations. 

  

	 	11.	If you plan to purchase a personal automobile at the host location, you should obtain a copy of a good driving record from your current automobile insurance company.

  

	 	12.	Update your family will. 

  

	 	13.	Make sure you have an adequate supply of any current prescription medications for you and your family. 

  

	 	14.	 Apply for a personal credit card that you can dedicate to expatriate-related 

  

 ORIENTATION – September 1, 2002 
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expenses (or check Shared Services to determine if you can continue to use your current Corporate Card). The Company will reimburse the annual fee for basic
membership of a personal credit card. 

  

	 	15.	Submit expense on the Moving Expense Statements for any interim living expenses, automobile rental prior to departure from home, one-time expatriate allowance, etc. (as outlined in
the Expatriate Orientation Manual) to Michelle Matteson, Prudential Relocation International, c/o Alcoa Corporate Center. 

  

	 	16.	Complete the Personal Data Form in the Orientation Manual including your Point-of-Origin for vacation benefits. Refer to the FORMS section of your orientation manual.

  

	 	17.	Complete the Valued Inventory List for all personal effects and household goods being stored at home or shipped to the host location. 

  

	 	18.	Complete all applicable documents in the “FORMS” section of your Orientation Manual. 

  

	 	19.	Make airline reservations to the host location and any required temporary accommodations for you and your family. 

  

	 	20.	Return all Company-provided credit cards issued from your current location. 

 ON ARRIVAL AT THE HOST LOCATION 
  

	 	1.	Advise your Prudential International Assignment Manager in Scottsdale, Arizona of your new home address, phone (work and home) numbers, VMX, and fax including country and city codes

  

	 	2.	Check with your local destination service provider assigned by Prudential at the host location for: : 

  

	 	•	 	driving laws 

  

	 	•	 	obtaining a host country drivers license and required automobile insurance 

  

	 	•	 	advice on leases/appliance purchase 

  

	 	3.	Check with your local Expatriate Administration regarding any company credit cards that are used at your host location and obtain application and or process for applying.

 ONGOING 
  

	 	1.	Advise your Prudential International Assignment Manager of any changes in: 

  

	 	•	 	dependents residing with you at the host location 

  

	 	•	 	changes in your emergency contact names/numbers 

  

	 	•	 	host country address and phone numbers 

  

	 	•	 	changes in your U.S. bank account details 

  

	 	2.	If you are a U.S. citizen or U.S. permanent resident alien shareholder in Alcoa and intend to use an address other than the Alcoa Building, you must so advise First Chicago Trust
Company of New York and provide them with the address for stockholder and dividend information. First Chicago’s address is as follows: 

 First Chicago Trust Company of New York 
 Attention: Stockholder Relations 
 P.O. Box 30981, Church Street Station 
 New
York, NY 10008-3981 
  

 ORIENTATION – September 1, 2002 
 Page 119 of 120 

	 	3.	If you are a U.S. citizen or U.S. permanent resident alien, have you completed a Statement Claiming Bona Fide Residence or Physical Presence Exemption (Form 673) for United
States tax purposes?                      

 It is required by United States law that one of these two statements be completed if you are claiming United States tax exemption on your earned income. The statement must be submitted to the Company, not the
United States Internal Revenue Service. Please send this form to your Prudential IAM and, if the exact date of arrival at the overseas location is known, the form can be completed before you depart from the U.S. (A blank form will be provided
to you by your Prudential International Assignment Manager). 
  

	 	4.	Please understand that regardless of what payroll you are on, the currency you receive as pay or where your salary is charged, each individual must comply with both
home and host country income tax laws as a personal responsibility. 

  

	 	5.	Have you received an explanation and have an understanding of the Company’s expatriate policies for salaried employees on global assignments which include a discussion of your
monthly Compensation Analysis?                      

  

	 	6.	If you are a current holder of a company telephone credit card, please notify Carol Churchill (e-mail: Carol.Churchill@alcoa.com or telephone: (412) 553-3013 of your new charge
and division code. 

  

 ORIENTATION – September 1, 2002 
 Page 120 of 120Employment Agreement of Danny H. O'Brien

 Exhibit 10.24 
  
 CHITTENDEN CORPORATION 
  
 Senior Executive Severance Agreement 
  
 AGREEMENT made as of this 18th day of March, 1998 by and among Chittenden Corporation, a Vermont corporation with its principal place of business in
Burlington, Vermont (the “Company” and the “Employer”), and Danny H. O’Brien of Charlotte, Vermont (the “Executive”), an individual presently employed as the Executive Vice President of the Company. 
  
 1. Purpose. The Company considers it essential to the best interest of
its stockholders to foster the continuous employment of key management personnel. The Board of Directors of the Company (the “Board”) recognizes, however, that, as is the case with many publicly held corporations, the possibility of a
Change in Control (as defined in Section 2 hereof) exists and that such possibility, and the uncertainty and questions which it may raise among management, may result in the departure or distraction of management personnel to the detriment of
the Company and its stockholders. Therefore, the Board has determined that appropriate steps should be taken to reinforce and encourage the continued attention and dedication of members of the Employer’s management, including the Executive, to
their assigned duties without distraction in the face of potentially disturbing circumstances arising from the possibility of a Change in Control. Nothing in this Agreement shall be construed as creating an express or implied contract of employment
and, except as otherwise agreed in writing between the Executive and the Employer, the Executive shall not have any right to be retained in the employ of the Employer. 
  
 2. Change in Control. A “Change in Control” shall mean the occurrence of any one of the following events:

  
 (a) any “person,” as such term is
used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) (other than the Company or any corporation owned, directly or indirectly, by the stockholders of the Company in substantially the same
proportions as their ownership of stock of the Company), is or becomes the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Company representing more than 25% of the number
of the Company’s then outstanding securities; or 
  
 (b) during any period of two consecutive years, individuals who at the beginning of such period constitute the Board, and any new director (other than a director designated by a person who has entered into an agreement with the Company to
effect a transaction described in Section 2(a), (c) or (d) of this Section 2) whose election by the Board or nomination for election by the Company’s stockholders was approved by a vote of at least two-thirds (2/3) of
the directors then still in office who either were directors at the beginning of the period or whose election or nomination for election was previously so approved, cease by any reason to constitute at lease one half thereof; or 
  
 (c) the stockholders of the Company approve a merger or
consolidation of the Company with any other corporation, other than a merger or consolidation which would result in the voting securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding
or being converted into voting securities of the surviving entity) more than 60% of the number of outstanding securities of the Company or such surviving entity outstanding immediately after such merger or consolidation; or 
  

 1 

 (d) the stockholders of the Company approve a plan of complete liquidation of the Company
or an agreement for the sale or disposition by the Company of all or substantially all of the Company’s assets. 
  
 3. Terminating Event. A “Terminating Event” shall mean any of the events provided in this Section 3 occurring within 3 years
subsequent to a Change in Control as defined in Section 2: 
  
 (a) termination by the Employer of the employment of the Executive with the Employer for any reason other than death of the Executive. 
  
 A Terminating Event shall not be deemed to have occurred pursuant to this Section 3(a) solely as a
result of the Executive being an employee of any direct or indirect successor to the business or assets of the Employer, rather than continuing as an employee of the Employer following a Change in Control, or 
  
 (b) termination by the Executive of the Executive’s
employment with the Employer for any reason, at Executive’s option. 
  
 4. Special Termination Payments. In the event a Terminating Event occurs within three (3) years after a Change in Control, including Executive’s election to terminate employment, upon written notice
from the Executive to the Employer. 
  
 (a) the
Employer shall pay to the Executive an amount equal to the sum of the following: 
  
 (i) 2.00 times the amount of the current base salary of the Executive, determined prior to any reductions for pre-tax contributions to a
cash or deferred arrangement or a cafeteria plan; and 
  
 (ii) 2.00 times the amount of the bonus that was actually paid to the Executive in the year of the Change in Control; and 
  
 (iii) 2.00 times the amount equal to the 401 (k) match and the profit sharing portion of the 401 (k) contribution which
Executive would have received in the year of the Change in Control; and 
  
 (iv) 2.00 times the amount equal to 401 (k) restoration payment, if any, made to the Executive in the year of the Change in Control; and 
  
 (v) 2.00 times the amount equal to any payment made to the Executive under the supplemental executive
retirement plan for members of the executive management group; and 
  
 (vi) all bonus payments relating to prior year bonuses and related contingent payments that have yet to be fully paid for any reason. 
  
 Said amount shall be paid in one lump sum payment no later than thirty-one (31) days following the Date of Termination (as such term is
defined in Section 8(b)); and 
  
 (b) the
Employer shall, regardless of whether Employer is unable to utilize Company related benefit plans, continue to provide to the Executive at Employer’s 

  

 2 

 
expense certain benefits, including, without limitation, medical, dental, long-term disability, accidental death and dismemberment insurance, life insurance
and other fringe benefits received by Executive in the year of a Change in Control, on the same terms and same conditions as though the Executive had remained an active employee, for twenty-four (24) months. At Executive’s election, the
Employer will be required to pay to Executive the cash equivalent of the foregoing, determined by a reputable accounting or actuarial firm selected by the Executive and paid for by Employer; and 
  
 (c) the Employer shall transfer or roll over any restricted
stock or options granted by the Company to the Executive to the successor entity after a Change in Control; and 
  
 (d) the Employer shall provide Executive with professional advice of a financial planner, or actuary or an accountant of Executive’s
choice to help Executive determine which elections Executive will make with respect to this Agreement, 
  
 (e) Employer shall pay for outplacement services selected by Executive and shall provide an office and clerical assistance to the
Executive for one year after a termination of Executive’s employment. 
  
 (f) The Employer shall pay to the Executive all reasonable legal and mediation fees and expenses incurred by the Executive in obtaining or enforcing any right or benefit provided by this Agreement, except in cases
involving frivolous or bad faith litigation initiated by the Executive. 
  
 5. Additional Benefits 
  
 (a)
Anything in this Agreement to the contrary notwithstanding, in the event it shall be determined that any compensation, payment or distribution by the Employer to or for the benefit of the Executive, whether paid or payable or distributed or
distributable pursuant to the terms of this Agreement or otherwise (the “Severance Payments”) would be subject to the excise tax imposed by Section 4999 of the Internal Revenue Code of 1986, as amended (the “Code”), or any
interest or penalties are incurred by the Executive with respect to such excise tax (such excise tax, together with any such interest and penalties, are hereinafter collectively referred to as the “Excise Tax”), then the Executive shall be
entitled to receive an additional payment (a “Gross-Up Payment”) such that the net amount retained by the Executive, after deduction of any Excise Tax on the Severance Payments, and Federal, state, and local income tax, employment tax and
Excise Tax upon the payment provided by this subsection and any interest and/or penalties assessed with respect to such Excise Tax, shall be equal to the Severance Payments. 
  
 (b) Subject to the provisions of Section 5(c), all determinations required to be made under this
Section 5, including whether a Gross-Up Payment is required and the amount of such Gross-Up Payment, shall be determined by Arthur Andersen, LLP or any other nationally recognized accounting firm selected by the Employer (the “Accounting
Firm”), which shall provide detailed supporting calculations both to the Employer and the Executive within 15 business days of the Date of Termination, if applicable, or at such earlier time as is reasonably requested by the Employer or the
Executive. For purposes of determining the amount of the Gross-Up Payment, the Executive shall be deemed to pay federal income taxes at the highest marginal rate of federal income taxation applicable to individuals for the calendar year in which the
Gross-Up Payment is to be made, and state and local income taxes at the highest marginal rates of individual 

  

 3 

 
taxation in the state and locality of the Executive’s residence on the Date of Termination, net of the maximum reduction in federal income taxes which
could be obtained from deduction of such state and local taxes. The initial Gross-Up Payment, if any, as determined pursuant to this Section 5(b), shall be paid to the Executive within five days of the receipt of the Accounting Firm’s
determination. If the Accounting Firm determines that no Excise Tax is payable by the Executive, the Employer shall furnish the Executive with an opinion of counsel that failure to report the Excise Tax on the Executive’s applicable federal
income tax return would not result in the imposition of a negligence or similar penalty. Any determination by the Accounting Firm shall be binding upon the Employer and the Executive. As a result of the uncertainty in the application of
Section 4999 of the Code at the time of the initial determination by the Accounting Firm hereunder, it is possible that Gross-Up Payments which will not have been made by the Employer should have been made (an “Underpayment”). In the
event that the Employer exhausts its remedies pursuant to Section 5(c) and the Executive thereafter is required to make a payment of any Excise Tax, the Accounting Firm shall determine the amount of the Underpayment that has occurred,
consistent with the calculations required to be made hereunder, and any such Underpayment, and any interest and penalties imposed on the Underpayment and required to be paid by the Executive in connection with the proceedings described in
Section 5(c), shall be promptly paid by the Employer to or for the benefit of the Executive. 
  
 (c) The Executive shall notify the Employer in writing of any claim by the Internal Revenue Service that, if successful, would require the
payment by the Employer of the Gross-Up Payment. Such notification shall be given as soon as practicable but no later than 10 business days after the Executive knows of such claim and shall apprise the Employer of the nature of such claim and the
date on which such claim is requested to be paid. The Executive shall not pay such claim prior to the expiration of the 30-day period following the date on which he gives such notice to the Employer (or such shorter period ending on the date that
any payment of taxes with respect to such claim is due). If the Employer notifies the Executive in writing prior to the expiration of such period that they desire to contest such claim, provided that the Employer has set aside adequate reserves to
cover the Underpayment and any interest and penalties thereon that may accrue, the Executive shall: 
  
 (i) give the Employer any information reasonably requested by the Employer relating to such claim, 
  
 (ii) take such action in connection with contesting such
claim as the Employer shall reasonably request in writing from time to time, including, without limitation, accepting legal representation with respect to such claim by an attorney selected by the Employer, 
  
 (iii) cooperate with the Employer in good faith in order
effectively to contest such claim, and 
  
 (iv)
permit the Employer to participate in any proceedings relating to such claim; provided, however, that the Employer shall bear and pay directly all costs and expenses (including additional interest and penalties) incurred in connection with such
contest and shall indemnify and hold the Executive harmless, on an after-tax basis, for any Excise Tax or income tax, including interest and penalties with respect thereto, imposed as a result of such representation and payment of costs and
expenses. Without limitation on the foregoing provisions of this Section 5(c), the Employer shall control all 

  

 4 

 
proceedings taken in connection with such contest and, at their sole option, may pursue or forego any and all administrative appeals, proceedings, hearing
and conferences with the taxing authority in respect of such claim and may, at their sole option, either direct the Executive to pay the tax claimed and sue for a refund or contest the claim in any permissible manner, and the Executive agrees to
prosecute such contest to a determination before any administrative tribunal, in a court of initial jurisdiction and in one or more appellate courts, as the Employer shall determine; provided, however, that if the Employer directs the Executive to
pay such claim and sue for a refund, the Employer shall advance the amount of such payment to the Executive on an interest-free basis and shall indemnify and hold the Executive harmless, on an after-tax basis, from any Excise Tax or income tax,
including interest or penalties with respect thereto, imposed with respect to such advance or with respect to any imputed income with respect to such advance; and further provided that any extension of the statute of limitations relating to payment
of taxes for the taxable year of the Executive with respect to which such contested amount is claimed to be due is limited solely to such contested amount. Furthermore, the Employer’s control of the contest shall be limited to issues with
respect to which a Gross-Up Payment would be payable hereunder and the Executive shall be entitled to settle or contest, as the case may be, any other issues raised by the Internal Revenue Service or any other taxing authority. 
  
 (d) If, after the receipt by the Executive of an amount
advanced by the Employer pursuant to Section 5(c), the Executive becomes entitled to receive any refund with respect to such claim, the Executive shall (subject to the Employer complying with the requirements of Section 5(c)) promptly pay
to the Employer the amount of such refund (together with any interest paid or credited thereon after taxes applicable thereto). If, after the receipt by the Executive of an amount advanced by the Employer pursuant to Section 5(c), a
determination is made that the Executive shall not be entitled to any refund with respect to such claim and the Employer does not notify the Executive in writing of its intent to contest such denial of refund prior to the expiration of 30 days after
such determination, then such advance shall be forgiven and shall not be required to be repaid and the amount of such advance shall be offset, to the extent thereof, to the amount of Gross-Up Payment required to be paid. 
  
 6. Term. This Agreement shall take effect on the date first set forth
above and shall terminate upon the resignation or voluntary termination of the Executive for any reason prior to a Change in Control. 
  
 7. Withholding. All payments made by the Employer under this Agreement shall be net of any tax or other amounts required to be withheld by the
Employer under applicable law. 
  
 8. Notice and Date of
Termination; Disputes; Etc. 
  
 (a) Notice
of Termination. After a Change in Control and during the term of this Agreement, any purported termination of the Executive’s employment (other than by reason of death) shall be communicated by written Notice of Termination from one party
hereto to the other party hereto in accordance with this Section 8. For purposes of this Agreement, a “Notice of Termination” shall mean a notice which shall indicate the specific termination provision in this Agreement relied upon
and the Date of Termination. 
  
 (b) Date of
Termination. “Date of Termination,” with respect to any purported termination of the Executive’s employment after a Change in Control and during the term 

  

 5 

 
of this Agreement, shall mean the date specified in the Notice of Termination. In the case of a termination by the Executive, the Date of Termination shall
not be less than 15 days from the date such Notice of Termination is given. Notwithstanding Section 3(a) of this Agreement, in the event that the Executive gives a Notice of Termination to the Employer, the Employer may unilaterally accelerate
the Date of Termination and such acceleration shall not result in a second Terminating Event for purposes of Section 3(a) of this Agreement. 
  
 (c) No Mitigation. The Employer agrees that, if the Executive’s employment by the Employer is terminated during the term of
this Agreement, the Executive is not required to seek other employment or to attempt in any way to reduce any amounts payable to the Executive by the Employer pursuant to Sections 4 and 5 hereof. Further, the amount of any payment provided for in
this Agreement shall not be reduced by any compensation earned by the Executive as a result of employment by another employer, by retirement benefits, by offset against any amount claimed to be owed by the Executive to the Employer, or otherwise.

  
 (d) Mediation of Disputes. The parties
shall endeavor in good faith to settle within 90 days any controversy or claim arising out of or relating to this Agreement or the breach thereof through mediation with JAMS, Endispute or similar organizations. If the controversy or claim is not
resolved within 90 days, the parties shall be free to pursue other legal remedies in law or equity. 
  
 9. Assignment: Prior Agreements. Neither the Employer nor the Executive may make any assignment of this Agreement or any interest herein, by
operation of law or otherwise, without the prior written consent of the other party, and without such consent any attempted transfer shall be null and void and of no effect. This Agreement shall inure to the benefit of and be binding upon the
Employer and the Executive, their respective successors, executors, administrators, heirs and permitted assigns. In the event of the Executive’s death after a Terminating Event but prior to the completion by the Employer of all payments due him
under Section 4 and 5 of this Agreement, the Employer shall continue such payments to the Executive’s beneficiary designated in writing to the Employer prior to his death (or to his estate, if the Executive fails to make such designation).

  
 10. Enforceability. If any portion or provision of this
Agreement shall to any extent be declared illegal or unenforceable by a court of competent jurisdiction, then the remainder of this Agreement, or the application of such portion or provision in circumstances other than those as to which it is so
declared illegal or unenforceable, shall not be affected thereby, and each portion and provision of this Agreement shall be valid and enforceable to the fullest extent permitted by law. 
  
 11. Waiver. No waiver of any provision hereof shall be effective unless made in writing and signed by the waiving
party. The failure of any party to require the performance of any term or obligation of this Agreement, or the waiver by any party of any breach of this Agreement, shall not prevent any subsequent enforcement of such term or obligation or be deemed
a waiver of any subsequent breach. 
  
 12. Notices. Any
notices, requests, demands, and other communications provided for by this Agreement shall be sufficient if in writing and delivered in person or sent by registered or certified mail, postage prepaid, to the Executive at the last address the
Executive has filed in writing with the Employer, or to the Employer at its main office, attention to the Board of Directors. 
  

 6 

 13. Effect on Other Plans. Nothing in this Agreement shall be construed to limit the rights of the
Executive under the Employer’s benefit plans, programs or policies. 
  
 14. Amendment. This Agreement may be amended or modified only by a written instrument signed by the Executive and by a duly authorized representative of the Employer. 
  
 15. Governing Law. This is a Vermont contract and shall be construed
under and be governed in all respects by the laws of the State of Vermont. 
  
 16. Obligations of Successors. In addition to any obligations imposed by law upon any successor to the Employer, the Employer shall require any successor (whether direct or indirect, by purchase, merger,
consolidation or otherwise) to all or substantially all of the business or assets of the Employer to expressly assume and agree to perform this Agreement in the same manner and to the same extent that the Employer would be required to perform if no
such succession had taken place. 
  
 IN WITNESS WHEREOF, this
Agreement has been executed as a sealed instrument by the Employer by its duly authorized officer and by Executive, as of the date first above written. 
  

					
	 CHITTENDEN CORPORATION

		
	 By: 
	 	/s/ Paul A. Perrault
	 	 	 Name:
	 	 
	 	 	 Title:
	 	 
	 	 	 Date:
	 	 

					
	
	/s/ Danny H. O’Brien
	 [Executive]

		
	 Date: 
	 	 3/20/98

  

 7

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