Document:

EX-10(a)

 Exhibit 10(a) 
 2013 ALCOA STOCK INCENTIVE PLAN 
 SECTION 1. PURPOSE. The purpose of
the 2013 Alcoa Stock Incentive Plan is to encourage selected Directors and Employees to acquire an increased proprietary interest in the long-term growth and financial success of the Company and to further link the interests of such individuals to
the long-term interests of shareholders. 
 SECTION 2. DEFINITIONS. As used in the Plan, the following terms have the
meanings set forth below: 
 “Affiliate” shall have the meaning set forth in Rule 12b-2 under Section 12 of
the Securities Exchange Act of 1934, as amended. 
 “Award” means any Option, Stock Appreciation Right,
Restricted Share Award, Restricted Share Unit, or any other right, interest, or option relating to Shares or other property granted pursuant to the provisions of the Plan. 
 “Award Agreement” means any written agreement, contract, or other instrument or document evidencing any Award granted by the Committee hereunder, which may, but need not, be executed or
acknowledged by both the Company and the Participant. 
 “Board” means the Board of Directors of the Company.

 “Change in Control” shall be deemed to have occurred if the event set forth in any one of the following
paragraphs shall have occurred: 
 (a) any one person or more than one person acting as a group (as determined in
accordance with Section 1.409A-3(i)(5)(v)(B) of the regulations promulgated under the Code) (a “Person”) acquires (or has acquired during the 12-month period ending on the date of the most recent acquisition by such Person), in
either case whether by purchase in the market, tender offer, reorganization, merger, statutory share exchange or consolidation, other similar transaction involving the Company or any of its subsidiaries or otherwise (a
“Transaction”), common stock of the Company possessing 30% or more of the total voting power of the stock of the Company unless (A) all or substantially all of the individuals and entities that were the beneficial owners of the
then-outstanding shares of common stock of the Company (the “Outstanding Company Common Stock”) or the combined voting power of the then outstanding voting securities of the Company (the “Outstanding Company Voting
Securities”) immediately prior to such Transaction own, directly or indirectly, 50% or more of the then outstanding shares of common stock (or, for a non-corporate entity, equivalent securities) and the combined voting power of the
then-outstanding voting securities entitled to vote generally in the election of directors (or, for a non-corporate entity, equivalent governing body), as the case may be, of the entity resulting from such Transaction (including, without limitation,
an entity that, as a result of such transaction, owns the Company or all or substantially all of the Company’s assets either directly or through one or more subsidiaries) in substantially the same proportions as their ownership immediately
prior to such Transaction of the Outstanding Company Common Stock and the Outstanding Company Voting Securities, as the case may be, and (B) at least a majority of the members of the board of directors (or, for a non-corporate entity,
equivalent governing body) of the entity resulting from such Transaction were members of the board of directors of the Company at the time of the Transaction (which in the case of a market purchase shall be the date 30% ownership was first acquired,
in the case of a tender offer, when at least 30% of the Company’s shares were tendered, and in other events upon the execution of the initial agreement or of the action of the Board providing for such Transaction); and provided, further, that,
for purposes of this paragraph, the following acquisitions shall not constitute a Change in Control: (i) any acquisition directly from the Company, (ii) any acquisition by the Company, or (iii) any acquisition by any employee benefit
plan (or related trust) sponsored or maintained by the Company or any Affiliate; 

 (b) a majority of the members of the Board is replaced during any 12-month
period by directors whose appointment or election is not endorsed by a majority of the Company’s Board before the date of such appointment or election; or 
 (c) any Person acquires (or has acquired during the 12-month period ending on the date of the most recent acquisition by such Person) assets of the Company that have a total gross fair market value of
more than 40% of the total gross fair market value of all of the assets of the Company immediately before such acquisition or acquisitions. 
 “Code” means the Internal Revenue Code of 1986, as amended from time to time, and any successor thereto. 
 “Committee” means the Compensation and Benefits Committee of the Board, or any successor to such committee, or a subcommittee thereof, composed of no fewer than two directors, each of
whom is a Non-Employee Director and an “outside director” within the meaning of Section 162(m) of the Code, or any successor provision thereto. 
 “Company” means Alcoa Inc., a Pennsylvania corporation. 

“Contingency Period” has the meaning set forth in Section 8. 

“Covered Employee” means a “covered employee” within the meaning of Section 162(m)(3) of the Code, or any
successor provision thereto. 
 “Director” means a member of the Board of Directors of the Company who is not
an Employee. 
 “Employee” means any employee (including any officer or employee director) of the Company or of
any Subsidiary. 
 “Executive Officer” means an officer who is designated as an executive officer by the Board
or by its designees in accordance with the definition of executive officer under Rule 3b-7 of the Securities Exchange Act of 1934, as amended. 
 “Exercisable Time-Based Award” has the meaning set forth in Section 12. 
 “Fair Market Value” with respect to Shares on any given date means the closing price per Share on that date as reported on the New York Stock Exchange or other stock exchange on which the
Shares principally trade. If the New York Stock Exchange or such other exchange is not open for business on the date fair market value is being determined, the closing price as reported for the next business day on which that exchange is open for
business will be used. 
 “Family Member” has the same meaning as such term is defined in Form S-8 (or any
successor form) promulgated under the Securities Act of 1933, as amended. 
 “Non-Employee Director” has the
meaning set forth in Rule 16b-3(b)(3) under the Securities Exchange Act of 1934, as amended, or any successor definition adopted by the Securities and Exchange Commission. 
 “Option” means any right granted to a Participant under the Plan allowing such Participant to purchase Shares at such price or prices and during such period or periods as the Committee
shall determine. All Options granted under the Plan are intended to be nonqualified stock options for purposes of the Code. 

“Other Awards” has the meaning set forth in Section 10. 

“Participant” means an Employee or a Director who is selected to receive an Award under the Plan. 

  
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 “Performance Award” means any award granted pursuant to Section 11
hereof in the form of Options, Stock Appreciation Rights, Restricted Share Units, Restricted Shares or other awards of property, including cash, that have a performance feature described in Section 11. 

“Performance Period” means that period established by the Committee at the time any Performance Award is granted or at
any time thereafter during which any performance goals specified by the Committee with respect to such Award are to be measured. A Performance Period may not be less than one year. 

“Plan” means this 2013 Alcoa Stock Incentive Plan, as amended and restated from time to time. 

“Prior Plans” mean the 2009 Alcoa Stock Incentive Plan, 2004 Alcoa Stock Incentive Plan, the Long Term Stock Incentive
Plan of Aluminum Company of America, and the Alcoa Stock Incentive Plan, each as amended and restated from time to time. 

“Replacement Award” means an Award resulting from adjustments or substitutions referred to in Section 4(f) herein,
provided that such Award is issued by a company (foreign or domestic) the majority of the equity of which is listed under and in compliance with the domestic company listing rules of the New York Stock Exchange or with a similarly liquid exchange
which has comparable standards to the domestic company listing standards of the New York Stock Exchange. 
 “Restricted
Shares” has the meaning set forth in Section 8. 
 “Restricted Share Unit” has the meaning set
forth in Section 9. 
 “Shares” means the shares of common stock of the Company, $1.00 par value.

 “Stock Appreciation Right” means any right granted under Section 7. 

“Subsidiary” means any corporation or other entity in which the Company owns, directly or indirectly, stock possessing
50 percent or more of the total combined voting power of all classes of stock in such corporation or entity, and any corporation, partnership, joint venture, limited liability company or other business entity as to which the Company possesses a
significant ownership interest, directly or indirectly, as determined by the Committee. 
 “Substitute Awards”
means Awards granted or Shares issued by the Company in assumption of, or in substitution or exchange for, awards previously granted, or the right or obligation to make future awards, by a company acquired by the Company or any of its Subsidiaries
or with which the Company or any of its Subsidiaries combines. 
 “Time-Based Award” means any Award granted
pursuant to the Plan that is not a Performance Award. 
 SECTION 3. ADMINISTRATION. The Plan shall be administered by the
Committee. The Committee shall have full power and authority, subject to such orders or resolutions not inconsistent with the provisions of the Plan as may from time to time be adopted by the Board, to: (i) select the Employees of the Company
and its Subsidiaries to whom Awards may from time to time be granted hereunder; (ii) determine the type or types of Award to be granted to each Employee Participant hereunder; (iii) determine the number of Shares to be covered by each
Employee Award granted hereunder; (iv) determine the terms and conditions, not inconsistent with the provisions of the Plan, of any Employee Award granted hereunder; (v) determine whether, to what extent and under what circumstances
Employee Awards may be settled in cash, Shares or other property or canceled or suspended; (vi) determine whether, to what extent and under what circumstances cash, Shares and other property and other amounts payable with respect to an Employee
Award under this Plan shall be deferred either automatically or at the election of the Participant; (vii) interpret and administer the Plan and any instrument or agreement entered into under the Plan; (viii) establish such rules and
regulations and appoint such agents as it shall deem appropriate for the proper administration of the Plan; and (ix) make any other determination and take any other action that the Committee deems necessary or desirable for administration of
the Plan, including, without limiting the generality of the foregoing, make any determinations necessary to effectuate the purpose of Section 12(a)(v) below. Decisions of the Committee shall be final, conclusive and binding upon all persons,
including the Company, any Participant and any shareholder; provided that the Board shall approve any decisions affecting Director Awards. 
  

  
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 The Board shall have full power and authority, upon the recommendation of the Governance and
Nominating Committee of the Board to: (i) select the Directors of the Company to whom Awards may from time to time be granted hereunder; (ii) determine the type or types of Award to be granted to each Director Participant hereunder;
(iii) determine the number of Shares to be covered by each Director Award granted hereunder; (iv) determine the terms and conditions, not inconsistent with the provisions of the Plan, of any Director Award granted hereunder;
(v) determine whether, to what extent and under what circumstances Director Awards may be settled in cash, Shares or other property or canceled or suspended; and (vi) determine whether, to what extent and under what circumstances cash,
Shares and other property and other amounts payable with respect to a Director Award under this Plan shall be deferred either automatically or at the election of the Director. For purposes of the Plan, an Award to a Director shall not exceed 10,000
Shares in any one-year period. 
 SECTION 4. SHARES SUBJECT TO THE PLAN. 

(a) Subject to the adjustment provisions of Section 4(f) below and the provisions of Section 4(b), commencing May 3, 2013,
up to 55 million Shares may be issued under the Plan. Any award other than an Option or a Stock Appreciation right shall count as 2.33 Shares for purposes of the foregoing authorization. Options and Stock Appreciation Rights shall be counted as
one Share for each Option or Stock Appreciation Right. 
 (b) In addition to the Shares authorized by Section 4(a), the
following Shares shall become available for issuance under the Plan: (i) Shares underlying Awards that are granted under the Plan, which are subsequently forfeited, cancelled or expire in accordance with the terms of the Award, and
(ii) Shares underlying Awards that had previously been granted under Prior Plans that are outstanding as of the date of the Plan, which are subsequently forfeited, cancelled or expire in accordance with the terms of the Award. The following
Shares shall not become available for issuance under the Plan: (x) Shares tendered in payment of an Option, and (y) Shares withheld for taxes. Shares purchased by the Company using Stock Option proceeds shall not be added to the Plan limit
and if Stock Appreciation Rights are settled in Shares, each Stock Appreciation Right shall count as one Share whether or not Shares are actually issued or transferred under the Plan. 

(c) Shares shall be deemed to be issued hereunder only when and to the extent that payment or settlement of an Award is actually made in
Shares. Notwithstanding anything herein to the contrary, the Committee may at any time authorize a cash payment in lieu of Shares, including without limitation if there are insufficient Shares available for issuance under the Plan to satisfy an
obligation created under the Plan. 
 (d) Any Shares issued hereunder may consist, in whole or in part, of authorized and
unissued Shares, treasury Shares or Shares purchased in the open market or otherwise. 
 (e) Shares issued or granted in
connection with Substitute Awards shall not reduce the Shares available for issuance under the Plan or to a Participant in any calendar year. 
 (f) Subject to Section 12, in the event of any merger, reorganization, consolidation, recapitalization, stock dividend, stock split, reverse stock split, spin-off or similar transaction or other
change in corporate structure affecting the Shares, such adjustments and other substitutions shall be made to the Plan and to Awards (including any Awards granted to Directors) as the Committee in its sole discretion deems equitable or appropriate,
including, without limitation, such adjustments in the aggregate number, class and kind of securities that may be delivered under the Plan, in the aggregate or to any one Participant, in the number, class, kind and option or exercise price of
securities subject to outstanding Options, Stock Appreciation Rights or other Awards granted under the Plan, and in the number, class and kind of securities subject to Awards granted under the Plan (including, if the Committee deems appropriate, the
substitution of similar options to purchase the shares of, or other awards denominated in the shares of, another company) as the Committee may determine to be appropriate in its sole discretion; provided that the number of Shares subject to
any Award shall always be a whole number and in the event of a Change in Control, the provisions of Section 12 shall govern and the value of an Award prior to a Change in Control shall be preserved in any Replacement Award. 

  
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 (g) Any outstanding Awards granted under Prior Plans before the expiration date of the Prior
Plans shall continue to be subject to the terms and conditions of the Prior Plans. 
 SECTION 5. ELIGIBILITY. Any
Director or Employee shall be eligible to be selected as a Participant. 
 SECTION 6. STOCK OPTIONS. Options may be
granted hereunder to Participants either alone or in addition to other Awards granted under the Plan. Any Option granted under the Plan may be evidenced by an Award Agreement in such form as the Committee from time to time approves. Any such Option
shall be subject to the terms and conditions required by this Section 6 and to such additional terms and conditions, not inconsistent with the provisions of the Plan, as the Committee may deem appropriate in each case. 

(a) Option Price. The purchase price per Share purchasable under an Option shall be determined by the Committee in its sole
discretion; provided that, except in connection with an adjustment provided for in Section 4(f) or Substitute Awards, such purchase price shall not be less than the Fair Market Value of one Share on the date of the grant of the Option.
The Committee may, in its sole discretion, establish a limit on the amount of gain that can be realized on an Option. 
 (b)
Option Period. The term of each Option granted hereunder shall not exceed ten years from the date the Option is granted. 

(c) Exercisability. Options shall be exercisable at such time or times as determined by the Committee at or subsequent to grant,
provided, however, that the minimum vesting period of an Option shall be one year. 
 (d) Method of Exercise. Subject to
the other provisions of the Plan, any Option may be exercised by the Participant in whole or in part at such time or times, and the Participant may make payment of the Option price in such form or forms, including, without limitation, payment by
delivery of cash, Shares or other consideration (including, where permitted by law and the Committee, Awards) having a Fair Market Value on the exercise date equal to the total Option price, or by any combination of cash, Shares and other
consideration as the Committee may specify in the applicable Award Agreement. 
 SECTION 7. STOCK APPRECIATION RIGHTS.
Stock Appreciation Rights may be granted to Participants on such terms and conditions as the Committee may determine, subject to the requirements of the Plan. A Stock Appreciation Right shall confer on the holder a right to receive, upon
exercise, the excess of (i) the Fair Market Value of one Share on the date of exercise or, if the Committee shall so determine, at any time during a specified period before the date of exercise over (ii) the grant price of the right on the
date of grant, or if granted in connection with an outstanding Option on the date of grant of the related Option, as specified by the Committee in its sole discretion, which, except in the case of Substitute Awards or in connection with an
adjustment provided in Section 4(f), shall not be less than the Fair Market Value of one Share on such date of grant of the right or the related Option, as the case may be. Any payment by the Company in respect of such right may be made in
cash, Shares, other property or any combination thereof, as the Committee, in its sole discretion, shall determine. The Committee may, in its sole discretion, establish a limit on the amount of gain that can be realized on a Stock Appreciation
Right. 

  
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 (a) Grant Price. The grant price for a Stock Appreciation Right shall be determined
by the Committee, provided, however, and except as provided in Section 4(f) and Substitute Awards, that such price shall not be less than 100% of the Fair Market Value of one Share on the date of grant of the Stock Appreciation Right.

 (b) Term. The term of each Stock Appreciation Right shall not exceed ten years from the date of grant, or if granted
in tandem with an Option, the expiration date of the Option. The minimum vesting period of a Stock Appreciation Right shall be one year. 
 (c) Time and Method of Exercise. The Committee shall establish the time or times at which a Stock Appreciation Right may be exercised in whole or in part. 

SECTION 8. RESTRICTED SHARES. 
 (a) Definition. A Restricted Share means any Share issued with the contingency or restriction that the holder may not sell, transfer, pledge or assign such Share and with such other contingencies
or restrictions as the Committee, in its sole discretion, may impose (including, without limitation, any contingency or restriction on the right to vote such Share and the right to receive any cash dividends), which contingencies and restrictions
may lapse separately or in combination, at such time or times, in installments or otherwise, as the Committee may deem appropriate. 
 (b) Issuance. A Restricted Share Award shall be subject to contingencies or restrictions imposed by the Committee during a period of time specified by the Committee (the “Contingency
Period”). Restricted Share Awards may be issued hereunder to Participants, for no cash consideration or for such minimum consideration as may be required by applicable law, either alone or in addition to other Awards granted under the Plan. The
terms and conditions of Restricted Share Awards need not be the same with respect to each recipient. 
 (c) Registration.
Any Restricted Share issued hereunder may be evidenced in such manner as the Committee in its sole discretion shall deem appropriate, including, without limitation, book-entry registration or issuance of a stock certificate or certificates. In the
event any stock certificate is issued in respect of Restricted Shares awarded under the Plan, such certificate shall be registered in the name of the Participant and shall bear an appropriate legend referring to the terms, conditions, contingencies
and restrictions applicable to such Award. 
 (d) Forfeiture. Except as otherwise determined by the Committee at the time
of grant or thereafter or as otherwise set forth in the terms and conditions of an Award, upon termination of employment for any reason during the Contingency Period, all Restricted Shares still subject to any contingency or restriction shall be
forfeited by the Participant and reacquired by the Company. 
 (e) Minimum Restrictions. Restricted Share Awards that are
restricted only on the passage of time shall have a minimum three-year pro-rata restriction period (the restrictions lapse each year as to 1/3 of the Restricted Share Awards); provided, however, that a restriction period of less than this period may
be approved for Awards with respect to up to 5% of the Shares authorized under the Plan. 
 (f) Section 83(b)
Election. A Participant may, with the consent of the Committee, make an election under Section 83(b) of the Code to report the value of Restricted Shares as income on the date of grant. 

SECTION 9. RESTRICTED SHARE UNITS. 
 (a) Definition. A Restricted Share Unit is an Award of a right to receive, in cash or Shares, as the Committee may determine, the Fair Market Value of one Share, the grant, issuance, retention
and/or vesting of which is subject to such terms and conditions as the Committee may determine at the time of the grant, which shall not be inconsistent with this Plan. 

  
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 (b) Terms and Conditions. In addition to the terms and conditions that may be
established at the time of a grant of Restricted Share Unit Awards, the following terms and conditions apply: 
  

	 	(i)	Restricted Share Unit Awards may not be sold, pledged (except as permitted under Section 15(a)) or otherwise encumbered prior to the date on which the Shares are
issued, or, if later, the date on which any applicable contingency, restriction or performance period lapses. 

  

	 	(ii)	Restricted Share Unit Awards that are vested only due to the passage of time shall have a minimum three-year pro-rata vesting period (1/3 vests each year); provided,
however, that a vesting period of less than three years may be approved for Restricted Share Unit Awards with respect to up to 5% of the Shares authorized under the Plan. 

 

	 	(iii)	Shares (including securities convertible into Shares) subject to Restricted Share Unit Awards may be issued for no cash consideration or for such minimum consideration
as may be required by applicable law. Shares (including securities convertible into Shares) purchased pursuant to a purchase right granted under this Section 9 thereafter shall be purchased for such consideration as the Committee shall in its
sole discretion determine, which shall not be less than the Fair Market Value of such Shares or other securities as of the date such purchase right is granted. 

 

	 	(iv)	The terms and conditions of Restricted Share Unit Awards need not be the same with respect to each recipient. 

SECTION 10. OTHER AWARDS. Other Awards of Shares and other Awards that are valued in whole or in part by reference to, or are
otherwise based on, Shares or other property (“Other Awards”) may be granted to Participants. Other Awards may be paid in Shares, cash or any other form of property as the Committee shall determine. Subject to the provisions of the Plan,
the Committee shall have sole and complete authority to determine the Participants to whom, and the time or times at which, such Awards shall be made, the number of Shares to be granted pursuant to such Awards and all other conditions of the Awards.
The terms and conditions of Other Awards need not be the same with respect to each recipient. Other Awards shall not exceed 5% of the Shares available for issuance under this Plan. 

SECTION 11. PERFORMANCE AWARDS. Awards with a performance feature are referred to as “Performance Awards”. Performance
Awards may be granted in the form of Options, Stock Appreciation Rights, Restricted Share Units, Restricted Shares or Other Awards with the features and restrictions applicable thereto. The performance criteria to be achieved during any Performance
Period and the length of the Performance Period shall be determined by the Committee upon the grant of each Performance Award, provided that the minimum performance period shall be one year. Performance Awards may be paid in cash, Shares, other
property or any combination thereof in the sole discretion of the Committee. The performance levels to be achieved for each Performance Period and the amount of the Award to be paid shall be conclusively determined by the Committee. Except as
provided in Section 12, each Performance Award shall be paid following the end of the Performance Period or, if later, the date on which any applicable contingency or restriction has ended. 

  
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 SECTION 12. CHANGE IN CONTROL PROVISIONS. 

(a) Effect of a Change in Control on Existing Awards under this Plan. Notwithstanding any other provision of the Plan to the
contrary, unless the Committee shall determine otherwise at the time of grant with respect to a particular Award, in the event of a Change in Control: 
  

	 	(i)	any Time-Based Award consisting of Options, Stock Appreciation Rights or any other Time-Based Award in the form of rights that are exercisable by Participants upon
vesting (“Exercisable Time-Based Award”), that is outstanding as of the date on which a Change in Control shall be deemed to have occurred and that is not then vested, shall become vested and exercisable, unless replaced by a Replacement
Award; 

  

	 	(ii)	any Time-Based Award that is not an Exercisable Time-Based Award that is outstanding as of the date on which a Change in Control shall be deemed to have occurred and
that is not then vested, shall become free of all contingencies, restrictions and limitations and shall become vested and transferable, unless replaced by a Replacement Award; 

 

	 	(iii)	any Replacement Award for which an Exercisable Time-Based Award has been exchanged upon a Change in Control shall vest and become exercisable in accordance with the
vesting schedule and term for exercisability that applied to the corresponding Exercisable Time-Based Award immediately prior to such Change in Control, provided, however, that if within twenty four (24) months of such Change in
Control, the Participant’s employment with the Company is terminated by the Company without Cause (as such term is defined in the Alcoa Inc. Change in Control Severance Plan) or by the Participant for Good Reason (as such term is defined in the
Alcoa Inc. Change in Control Severance Plan), such Award shall become vested and exercisable to the extent outstanding at the time of such termination of employment. Any Replacement Award that has become vested and exercisable pursuant to this
paragraph shall expire on the earlier of (A) thirty six (36) months following the date of termination of such Participant’s employment with the Company and (B) the last day of the term of such Replacement Award;

  

	 	(iv)	any Replacement Award for which a Time-Based Award that is not an Exercisable Time-Based Award has been exchanged upon a Change in Control shall vest in accordance with
the vesting schedule that applied to the corresponding Time-Based Award immediately prior to such Change in Control, provided, however, that if within twenty four (24) months of such Change in Control, the Participant’s
employment with the Company is terminated by the Company without Cause (as such term is defined in the Alcoa Inc. Change in Control Severance Plan) or by the Participant for Good Reason (as such term is defined in the Alcoa Inc. Change in Control
Severance Plan), such Award shall become free of all contingencies, restrictions and limitations and become vested and transferable to the extent outstanding; 

 

	 	(v)	any Performance Award shall be converted so that such Award is no longer subject to any performance condition referred to in Section 11 above, but instead is
subject to the passage of time, with the number or value of such Replacement Award determined as follows: (A) if fifty percent (50%) or more of the Performance Period has been completed as of the date on which such Change in Control is
deemed to have occurred, the number or value of such Award shall be based on actual performance during the Performance Period; or (B) if less than fifty percent (50%) of the Performance Period has been completed as of the date on which
such Change in Control is deemed to have occurred, the number or value of such Award shall be the target number or value. Paragraphs (i) through (iv) above shall govern the terms of such Time-Based Award. 

(b) Change in Control Settlement. Notwithstanding any other provision of this Plan, if approved by the Committee, upon a Change in
Control, a Participant may receive a cash settlement under clauses (i) and (ii) below of existing Awards that are vested and exercisable as of the date on which such Change in Control shall be deemed to have occurred: 

 

	 	(i)	a Participant who holds an Option or Stock Appreciation Right may, in lieu of the payment of the purchase price for the Shares being purchased under the Option or Stock
Appreciation Right, surrender the Option or Stock Appreciation Right to the Company and receive cash, within 30 days of the Change in Control in an amount equal to the amount by which the Fair Market Value of the Shares on the date of the Change in
Control exceeds the purchase price per Share under the Option or Stock Appreciation Right multiplied by the number of Shares granted under the Option or Stock Appreciation Right; and 

  
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	 	(ii)	a Participant who holds Restricted Share Units may, in lieu of receiving Shares which have vested under Section 12 (a)(ii) of this Plan, receive cash, within 30
days of a Change in Control, in an amount equal to the Fair Market Value of the Shares on the date of the Change in Control multiplied by the number of Restricted Share Units held by the Participant. 

SECTION 13. CODE SECTION 162(m) PROVISIONS. 
 (a) Notwithstanding any other provision of this Plan, if the Committee determines at the time a Restricted Share Award, a Performance Award or a Restricted Share Unit Award is granted to a Participant
that such Participant is, or is likely to be as of the end of the tax year in which the Company would claim a tax deduction in connection with such Award, a Covered Employee, then the Committee may provide that this Section 13 is applicable to
such Award. 
 (b) If an Award is subject to this Section 13, then the lapsing of contingencies or restrictions thereon and
the distribution of cash, Shares or other property pursuant thereto, as applicable, shall be subject to the achievement by the Company or any Subsidiary, or any division or business unit thereof, as appropriate, of one or more objective performance
goals established by the Committee. Performance goals shall be set by the Committee (and any adjustments shall be made by the Committee) within the time period prescribed by, and shall otherwise comply with, the requirements of Section 162(m)
of the Code, or any successor provision thereto, and the regulations thereunder. 
 (c) As the Committee deems appropriate,
performance goals established by the Committee may be based upon (x) the achievement of specified levels of Company, Subsidiary or unit performance under one or more of the measures described below, (y) the improvement in Company,
Subsidiary or unit performance under one or more of the measures, and (z) Company, Subsidiary or unit performance under one or more of the measures relative to the performance of other comparator companies or groups of companies or an external
index or indicator. Performance goals may include a threshold level of performance below which no Award will be earned, levels of performance at which an Award will become partially earned, and a level of performance at which an Award will be fully
earned. Any of the measures listed below, as applicable, may be calculated to exclude special items, extraordinary items or nonrecurring items or may be normalized for fluctuations in currency or the price of aluminum on the London Metal Exchange:

  

	 	(i)	earnings, including earnings margin, operating income, earnings before or after taxes, and earnings before or after interest, taxes, depreciation, and amortization;

  

	 	(ii)	book value per share; 

  

	 	(iii)	pre-tax income, after-tax income, income from continuing operations, or after tax operating income; 

 

	 	(iv)	operating profit; 

  

	 	(v)	earnings per common share (basic or diluted); 

  

	 	(vi)	return on assets (net or gross); 

  

	 	(vii)	return on capital; 

  

	 	(viii)	return on invested capital; 

  

	 	(ix)	sales, revenues or growth in or returns on sales or revenues; 

  

	 	(x)	share price appreciation; 

  

	 	(xi)	total shareholder return; 

  

	 	(xii)	cash flow, operating cash flow, free cash flow, cash flow return on investment (discounted or otherwise), cash on hand, reduction of debt, capital structure of the
Company including debt to capital ratios; 

  

	 	(xiii)	implementation or completion of critical projects or processes; 

  

	 	(xiv)	economic profit, economic value added or created; 

  
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	 	(xv)	cumulative earnings per share growth; 

  

	 	(xvi)	achievement of cost reduction goals; 

  

	 	(xvii)	return on shareholders’ equity; 

  

	 	(xviii)	total shareholders’ return; 

  

	 	(xix)	reduction of days working capital, working capital or inventory; 

  

	 	(xx)	operating margin or profit margin; 

  

	 	(xxi)	capital expenditures; 

  

	 	(xxii)	cost targets, reductions and savings, productivity and efficiencies; 

  

	 	(xxiii)	strategic business criteria, consisting of one or more objectives based on market penetration, geographic business expansion, customer satisfaction (including product
quality and delivery), employee satisfaction, human resources management (including diversity representation), supervision of litigation, information technology, and goals relating to acquisitions, divestitures, joint ventures and similar
transactions, and budget comparisons; 

  

	 	(xxiv)	personal professional objectives, including any of the foregoing performance measures, the implementation of policies and plans, the negotiation of transactions, the
development of long-term business goals, formation of joint ventures, research or development collaborations, technology and best practice sharing within the Company, and the completion of other corporate goals or transactions;

  

	 	(xxv)	sustainability measures, community engagement measures or environmental, health or safety goals of the Company or the Subsidiary or business unit of the Company for or
within which the Participant is primarily employed; or 

  

	 	(xxvi)	audit and compliance measures. 

(d) Notwithstanding any provision of this Plan other than Section 4(f) and Section 12, with respect to any Award that is
subject to this Section 13, the Committee may adjust downwards, but not upwards, the amount payable pursuant to such Award, and the Committee may not waive the achievement of the applicable performance goals. 

(e) The Committee shall have the power to impose such other restrictions on Awards subject to this Section 13 as it may deem
necessary or appropriate to ensure that such Awards satisfy all requirements for “performance-based compensation” within the meaning of Section 162(m)(4)(C) of the Code, or any successor provision thereto. 

(f) For purposes of complying with Section 162(m) limitations on “performance-based compensation,” and subject to
Section 4(f), no Participant may be granted Options and/or Stock Appreciation Rights in any calendar year with respect to more than 6,000,000 Shares, or Restricted Share Awards or Restricted Share Unit Awards covering more than 1,500,000
Shares. The maximum dollar value payable with respect to Performance Awards that are valued with reference to property other than Shares and granted to any Participant in any one calendar year is $10,000,000. 

SECTION 14. AMENDMENTS AND TERMINATION. The Board may amend, alter, suspend, discontinue or terminate the Plan or any portion
thereof at any time; provided that notwithstanding any other provision in this Plan, no such amendment, alteration, suspension, discontinuation or termination shall be made: (a) without shareholder approval, if a proposed amendment or
alteration would increase the benefits accruing to Participants, increase the maximum number of Shares which may be issued under the Plan (except as provided in Section 4), modify the Plan’s eligibility requirements, or accelerate, lapse
or waive restrictions other than in the case of death, disability, retirement or Change in Control; or (b) without the consent of the affected Participant, if such action would impair the rights of such Participant under any outstanding Award,
except as provided in Sections 15(e) and 15(f). Notwithstanding anything to the contrary herein, the Committee may amend the Plan in such manner as may be necessary so as to have the Plan conform to local rules and regulations in any jurisdiction
outside the United States or to qualify for or comply with any tax or regulatory requirement for which or with which the Board deems it necessary or desirable to qualify or comply. 

  
 10 

 SECTION 15. GENERAL PROVISIONS. 

(a) Transferability of Awards. Awards may be transferred by will or the laws of descent and distribution and shall be exercisable,
during the Participant’s lifetime, only by the Participant or, if permissible under applicable law, by the Participant’s guardian or legal representative. A Participant may, in the manner established by the Committee, designate a
beneficiary to exercise the rights of the Participant with respect to any Award upon the death of the Participant. Awards may be transferred to one or more Family Members, individually or jointly, or to a trust whose beneficiaries include the
Participant or one or more Family Members under terms and conditions established by the Committee. The Committee shall have authority to determine, at the time of grant, any other rights or restrictions applicable to the transfer of Awards;
provided however, that no Award may be transferred to a third party for value or consideration. Any Award shall be null and void and without effect upon any attempted assignment or transfer, except as provided in this Plan or the terms and
conditions established for an Award, including without limitation, any purported assignment, whether voluntary or by operation of law, pledge, hypothecation or other disposition, attachment, divorce or trustee process or similar process, whether
legal or equitable. 
 (b) Award Entitlement. No Employee or Director shall have any claim to be granted any Award under
the Plan and there is no obligation for uniformity of treatment of Employees or Directors under the Plan. 
 (c) Terms and
Conditions of Award. The prospective recipient of any Award under the Plan shall be deemed to have become a Participant subject to all the applicable terms and conditions of the Award upon the grant of the Award to the prospective recipient,
unless the prospective recipient notifies the Company within 30 days of the grant that the prospective recipient does not accept the Award. 
 (d) Award Adjustments. Except as provided in Section 13, the Committee shall be authorized to make adjustments in Performance Award criteria or in the terms and conditions of other Awards in
recognition of unusual or nonrecurring events affecting the Company or its financial statements or changes in applicable laws, regulations or accounting principles. The Committee may correct any defect, supply any omission or reconcile any
inconsistency in the Plan or any Award in the manner and to the extent it shall deem desirable to carry it into effect. 
 (e)
Committee Right to Cancel. The Committee shall have full power and authority to determine whether, to what extent and under what circumstances any Award shall be canceled or suspended at any time prior to a Change in Control: (i) if an
Employee, without the consent of the Committee, while employed by the Company or after termination of such employment, becomes associated with, employed by, renders services to or owns any interest (other than an interest of up to 5% in a publicly
traded company or any other nonsubstantial interest, as determined by the Committee) in any business that is in competition with the Company; (ii) in the event of the Participant’s willful engagement in conduct which is injurious to the
Company, monetarily or otherwise; or (iii) in the event of an Executive Officer’s misconduct described in Section 15(f). For purposes of clause (ii), no act, or failure to act, on the Participant’s part shall be deemed
“willful” unless done, or omitted to be done, by the Participant not in good faith and without reasonable belief that the Participant’s act, or failure to act, was in the best interest of the Company. In the event of a dispute
concerning the application of this Section 15(e), no claim by the Company shall be given effect unless the Board determines that there is clear and convincing evidence that the Committee has the right to cancel an Award or Awards hereunder, and
the Board finding to that effect is adopted by the affirmative vote of not less than three quarters of the entire membership of the Board (after reasonable notice to the Participant and an opportunity for the Participant to provide information to
the Board in such manner as the Board, in its sole discretion, deems to be appropriate under the circumstances). 
 (f)
Clawback. Notwithstanding any other provision of the Plan to the contrary, in accordance with the Company’s Corporate Governance Guidelines, if the Board learns of any misconduct by an Executive Officer that contributed to the Company
having to restate all or a portion of its financial statements, the Board will, to the full extent permitted by governing law, in all appropriate cases, effect the cancellation and recovery of Awards (or the value of Awards) previously granted to
the Executive Officer if: (i) the 

  
 11 

 
amount of the Award was calculated based upon the achievement of certain financial results that were subsequently the subject of a restatement, (ii) the executive engaged in intentional
misconduct that caused or partially caused the need for the restatement, and (iii) the amount of the Award had the financial results been properly reported would have been lower than the amount actually awarded. 

(g) Stock Certificate Legends. All certificates for Shares delivered under the Plan pursuant to any Award shall be subject to such
stock transfer orders and other restrictions as the Committee may deem advisable under the rules, regulations, and other requirements of the Securities and Exchange Commission, any stock exchange upon which the Shares are then listed and any
applicable Federal or state securities law, and the Committee may cause a legend or legends to be put on any such certificates to make appropriate reference to such restrictions. 

(h) Compliance with Securities Laws. No Award granted hereunder shall be construed as an offer to sell securities of the Company,
and no such offer shall be outstanding, unless and until the Committee in its sole discretion has determined that any such offer, if made, would be in compliance with all applicable requirements of the U.S. Federal securities laws and any other laws
to which such offer, if made, would be subject. 
 (i) Dividends. No Award of Options or Stock Appreciation Rights shall
have the right to receive dividends or dividend equivalents. A recipient of an Award of Restricted Shares shall receive dividends on the Restricted Shares subject to such contingencies or restrictions as the Committee, in its sole discretion, may
impose. Dividend equivalents shall accrue on Restricted Share Units (including Restricted Share Units that have a performance feature) and shall only be paid if and when such Restricted Share Units vest, unless the Committee determines that no
dividend equivalents may be accrued or paid. Dividend equivalents that accrue on Restricted Share Units will be calculated at the same rate as dividends paid on the common stock of the Company. Notwithstanding any provision herein to the contrary,
no dividends or dividend equivalents shall be paid on Restricted Share Units that have not vested or on Restricted Share Units that have not been earned during a Performance Period. 

(j) Consideration for Awards. Except as otherwise required in any applicable Award Agreement or by the terms of the Plan,
recipients of Awards under the Plan shall not be required to make any payment or provide consideration other than the rendering of services. 
 (k) Delegation of Authority by Committee. The Committee may delegate to one or more Executive Officers or a committee of Executive Officers the right to grant Awards to Employees who are not
Executive Officers or Directors of the Company and to cancel or suspend Awards to Employees who are not Executive Officers or Directors of the Company. 
 (l) Withholding Taxes. The Company shall be authorized to withhold from any Award granted or payment due under the Plan the amount of withholding taxes due in respect of an Award or payment
hereunder and to take such other action as may be necessary in the opinion of the Company to satisfy all obligations for the payment of such taxes. The Committee shall be authorized to establish procedures for election by Participants to satisfy
such obligations for the payment of such taxes by delivery of or transfer of Shares to the Company or by directing the Company to retain Shares otherwise deliverable in connection with the Award. All personal taxes applicable to any Award under the
Plan are the sole liability of the Participant. 
 (m) Other Compensatory Arrangements. Nothing contained in this Plan
shall prevent the Board from adopting other or additional compensation arrangements, subject to shareholder approval if such approval is required; and such arrangements may be either generally applicable or applicable only in specific cases.

 (n) Governing Law. The Plan and all determinations made and actions taken thereunder, to the extent not otherwise
governed by the laws of the United States, shall be governed by the laws of the State of New York, without reference to principles of conflict of laws, and construed accordingly. 

  
 12 

 (o) Severability. If any provision of this Plan is or becomes or is deemed invalid,
illegal or unenforceable in any jurisdiction, or would disqualify the Plan or any Award under any law deemed applicable by the Committee, such provision shall be construed or deemed amended to conform to applicable laws or if it cannot be construed
or deemed amended without, in the determination of the Committee, materially altering the intent of the Plan, it shall be stricken and the remainder of the Plan shall remain in full force and effect. 

(p) Awards to Non-U.S. Employees. Awards may be granted to Employees and Directors who are foreign nationals or employed outside
the United States, or both, on such terms and conditions different from those applicable to Awards to Employees and Directors who are not foreign nationals or who are employed in the United States as may, in the judgment of the Committee, be
necessary or desirable in order to recognize differences in local law or tax policy. The Committee also may impose conditions on the exercise or vesting of Awards in order to minimize the Company’s obligation with respect to tax equalization
for Employees on assignments outside their home countries. Notwithstanding the discretion of the Committee under this section, the Participant remains solely liable for any applicable personal taxes. 

(q) Repricing Prohibited. Except as provided in Section 4(f), the terms of outstanding Options or Stock Appreciation Rights
may not be amended, and action may not otherwise be taken without shareholder approval, to: (i) reduce the exercise price of outstanding Options or Stock Appreciation Rights, (ii) cancel outstanding Options or Stock Appreciation Rights in
exchange for Options or Stock Appreciation Rights with an exercise price that is less than the exercise price of the original Options or Stock Appreciation Rights, or (iii) replace outstanding Options or Stock Appreciation Rights in exchange
for other Awards or cash. 
 (r) Deferral. The Committee may require or permit Participants to elect to defer the
issuance of Shares or the settlement of Awards in cash or other property to the extent that such deferral complies with Section 409A and any regulations or guidance promulgated thereunder. The Committee may also authorize the payment or
crediting of interest, dividends or dividend equivalents on any deferred amounts. 
 (s) Compliance with Section 409A of
the Code. Except to the extent specifically provided otherwise by the Committee and notwithstanding any other provision of the Plan, Awards under the Plan are intended to satisfy the requirements of Section 409A of the Code (and the
Treasury Department guidance and regulations issued thereunder) so as to avoid the imposition of any additional taxes or penalties under Section 409A of the Code. If the Committee determines that an Award, payment, distribution, transaction or
any other action or arrangement contemplated by the provisions of the Plan would, if undertaken, cause a Participant to become subject to any additional taxes or other penalties under Section 409A of the Code, then unless the Committee
specifically provides otherwise, such Award, payment, distribution, transaction or other action or arrangement shall not be given effect to the extent it causes such result and the related provisions of the Plan and/or Award Agreement will be deemed
modified, or, if necessary, suspended in order to comply with the requirements of Section 409A of the Code to the extent determined appropriate by the Committee, in each case without the consent of or notice to the Participant. Although the
Company may attempt to avoid adverse tax treatment under Section 409A of the Code, the Company makes no representation to that effect and expressly disavows any covenant to maintain favorable or avoid unfavorable tax treatment. The Company
shall be unconstrained in its corporate activities without regard to the potential negative tax impact on holders of Awards under the Plan. 
 SECTION 16. TERM OF PLAN. No Award shall be granted pursuant to the Plan after May 2, 2023, but any Award theretofore granted may extend beyond that date. The effective date of the Plan shall
be the date it is approved by the shareholders of the Company. If the shareholders of the Company do not approve the Plan, then the Plan and all rights hereunder shall immediately terminate and no Participant (or any permitted transferee) shall have
any remaining rights under the Plan and any Award granted under it shall be cancelled. 

  
 13 

 SECTION 17. TERMINATION OF PRIOR PLAN. No stock options or other awards may be
granted under the Amended and Restated 2009 Alcoa Stock Incentive Plan after May 2, 2013, but all such awards theretofore granted shall extend for the full stated terms thereof and be administered under the Amended and Restated 2009 Alcoa Stock
Incentive Plan. Notwithstanding any other provision to the contrary, all outstanding awards previously granted under Prior Plans shall be governed by the terms and conditions of the applicable Prior Plans under which such awards were granted.

  
 14EX-10(b)

 Exhibit 10(b) 
 ALCOA INC. 
 TERMS AND CONDITIONS FOR STOCK OPTION AWARDS 

Effective May 3, 2013 

These terms and conditions are authorized by the Compensation and Benefits Committee of the Board of Directors. They are deemed to be incorporated into
and form a part of every Stock Option award issued on or after May 3, 2013 under the 2013 Alcoa Stock Incentive Plan, as last amended prior to the grant (the “Plan”). 
 Terms that are defined in the Plan have the same meanings in these terms and conditions, except that Alcoa or Company means Alcoa Inc. or any of its controlled subsidiaries or affiliates. 

General Terms and Conditions 
 1. Stock Option awards are subject to the terms and conditions set forth in the Participant’s account at Merrill Lynch’s OnLine® website www.benefits.ml.com, the provisions of the Plan and the provisions of these terms and conditions. 

2. The grant price of a stock option is 100% of the Fair Market Value per Share on the date of grant, unless the Participant’s
account at Merrill Lynch’s OnLine® website www.benefits.ml.com, specifies a higher grant price.

 3. “Fair Market Value” per Share on any given date is the closing price per Share on that date as reported on the New York Stock
Exchange or other stock exchange on which the Shares principally trade. If the New York Stock Exchange or such other exchange is not open for business on the date Fair Market Value is being determined, the closing price as reported for the next
business day on which that exchange is open for business will be used. 
 4. The expiration date of a Stock Option is ten years after the date
of grant. 
 Vesting and Exercisability 
 5. Stock Options vest as to one-third of the Award on the first anniversary of the grant date, as to one-third of the Award on the second anniversary of the grant date and as to one-third of the Award on
the third anniversary of the grant date. 
 6. Except as provided in paragraph 8, once vested, a Stock Option may be exercised until its
expiration date, as long as the Participant remains an active employee of the Company. 

  
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STOCK OPTION TERMS AND CONDITIONS (MAY 2013) 
  

1 

 7. Except as provided in paragraph 8: 

 

	 	•	 	 as a condition to exercise of a Stock Option, a Participant must remain an Alcoa employee actively at work until the date the option vests, and if a
Stock Option vests as to some but not all Shares covered by the Award, the Participant must be an active employee on the date the relevant portion of the Award vests; and 

 

	 	•	 	 if the Participant’s employment with Alcoa terminates prior to the vesting date of the Stock Option (or relevant option portion), the Stock Option
(or relevant option portion) is forfeited and is automatically canceled. 

 8. The following are exceptions to the vesting and
exercisability rules: 
  

	 	•	 	 Death or Disability: a Stock Option held by a Participant, who dies while an employee or who is permanently and totally disabled while an
employee, is not forfeited but vests in accordance with the original vesting date. In the case of a Participant who dies while an employee, any Stock Option that is vested must be exercised by a legal representative or beneficiary on the earlier of
five years from the date of death or the original expiration date of the Stock Option. In the case of a Participant who is permanently and totally disabled while an employee, any Stock Option that is vested must be exercised on the earlier of five
years from the date of such disability or the original expiration date of the Stock Option. 

 A Participant is
deemed to be permanently and totally disabled if the Participant is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or which has
lasted or can be expected to last for a continuous period of not less than 12 months. A Participant shall not be considered to be permanently and totally disabled unless the Participant furnishes proof of the existence thereof in such form and
manner, and at such times, as the Company may require. In the event of a dispute, the determination whether a Participant is permanently and totally disabled will be made by the Committee. 

 

	 	•	 	 Change in Control: a Stock Option vests if a Replacement Award is not provided following certain Change in Control events, as described in the
Plan. 

  

	 	•	 	 Retirement: a Stock Option is not forfeited if it is held by a Participant who retires at least 6 months after the grant date under a Company
plan (or if there is no Company plan, a government retirement plan) in which the Participant is eligible for an immediate payment of a retirement benefit. In that event, any unvested portion of the Stock Option vests in accordance with the original
vesting schedule of the grant, and any Stock Option that is vested will be exercisable until the earlier of five years from the date of retirement or the original expiration date of the Stock Option. 

  
 2013
STOCK OPTION TERMS AND CONDITIONS (MAY 2013) 
  

2 

	 	•	 	 Divestiture: if a Stock Option is held by a Participant identified by the Company to be terminated from employment with the Company as a result
of a divestiture of a business or a portion of a business of the Company and the Participant either becomes an employee of (or is leased or seconded to) the entity acquiring the business on the date of the closing, or the Participant is not offered
employment with the entity acquiring the business and is terminated by the Company within 90 days of the closing of the sale, then, at the discretion of the Chief Executive Officer of Alcoa Inc.: 

 

	 	•	 	 Any unvested portion of the Stock Option will continue to vest under the original vesting schedule and once vested, will be exercisable until the
earlier of the original expiration date of the Stock Option or three years from the date the Participant’s employment with the Company has been terminated; and 

 

	 	•	 	 Any vested portion of the Stock Option will remain exercisable until the earlier of the original expiration date of the Stock Option or two years from
the date the Participant’s employment with the Company has been terminated. 

 For purposes of this
paragraph, employment by “the entity acquiring the business” includes employment by a subsidiary or affiliate of the entity acquiring the business; and “divestiture of a business” means the sale of assets or stock resulting in
the sale of a going concern. “Divestiture of a business” does not include a plant shut down or other termination of a business. 
  

	 	•	 	 Termination of Employment: if a Stock Option is held by a Participant whose employment with the Company is terminated for any reason other than
those described above in this paragraph 8, any unvested Stock Options will be forfeited on the date of termination of employment and any vested Stock Options will remain exercisable for 90 days after the date employment is terminated.

 Option Exercise and Payment of Exercise Price 

9. A vested, exercisable option is exercised when a signed notification of exercise is received by Merrill Lynch’s OnLine® website www.benefits.ml.com. 
 10. Payment in full of the purchase price of a Stock Option is due on the exercise date. Payment of the option purchase price may be made: 

 

	 	•	 	 in cash (including a “broker-assisted cashless exercise” described in the next paragraph); or 

  
 2013
STOCK OPTION TERMS AND CONDITIONS (MAY 2013) 
  

3 

	 	•	 	 by the delivery or presentation of Shares that have been owned by the Participant for the Minimum Holding Period (as defined below) and that have an
aggregate Fair Market Value on the date of exercise, which, together with any cash payment, equals or exceeds the Stock Option purchase price. 

 11. A Participant may elect to pay the cash purchase price of the option through a “broker-assisted cashless exercise,” using Merrill Lynch’s OnLine® website www.benefits.ml.com. On or prior to the exercise date, the Participant must deliver the
Participant’s instruction directing and obligating the broker to (a) sell Shares (or a sufficient portion of the Shares) acquired upon exercise of the option and (b) remit to the Company a sufficient portion of the sale proceeds to
pay the entire purchase price and any tax withholding resulting from the exercise. Such proceeds are due not later than the third trading day after the exercise date. 
 12. Shares owned by a Participant include (a) those registered in the Participant’s name (or registered jointly with another person), (b) those held in a brokerage account owned by the
Participant individually or jointly with another person, and (c) those held in a trust, partnership, limited partnership or other entity for the benefit of the Participant individually (or for the benefit of the Participant jointly with another
person). Notwithstanding the foregoing, Shares owned by a Participant do not include Shares held in any qualified plan, IRA or similar tax deferred arrangement or Shares that are otherwise subject to potential accounting limitations regarding their
use in stock swap transactions. The Company may require verification or proof of ownership or length of ownership of any shares delivered in payment of the purchase price of an option. 
 13. The term “Minimum Holding Period” means 6 months or such other period, if any, as qualifies as the measurement period for “mature shares” under applicable generally accepted
accounting principles. In calculating the number of shares available for delivery to pay the purchase price of an option, shares acquired upon exercise of a stock option (including any shares delivered or exchanged to pay the purchase price thereof
or withholding taxes thereon) shall be disregarded until expiration of the Minimum Holding Period after exercise. 
 Taxes

 14. All taxes required to be withheld under applicable tax laws in connection with a Participant’s receipt of Shares upon exercise
of a Stock Option must be paid over by the Participant, in cash, immediately upon advice, unless the Participant complies with the following paragraphs regarding payment using Shares. 
 15. A Participant may satisfy his or her obligation to pay required withholding taxes due upon such exercise by having Alcoa withhold from the Shares to be issued upon the exercise that number of Shares
with a Fair Market Value on the exercise date equal to the withholding amount to be paid. Withholding taxes in the United States include applicable income taxes, federal and state unemployment compensation taxes and FICA/FUTA taxes. 

  
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STOCK OPTION TERMS AND CONDITIONS (MAY 2013) 
  

4 

 16. The amount of taxes that may be paid by a Participant using Shares retained from the Stock Option
exercise will be determined by applying the minimum rates required by applicable tax regulations. 
 17. The election to use Shares to satisfy a
Participant’s withholding obligation must be made, in writing, not later than at the time of exercise of the Stock Option. 

Beneficiaries 
 18. Participants will be entitled to designate one or more beneficiaries to receive all Stock Options that are unexercised at the time of the Participant’s death. All beneficiary designations will be
on a beneficiary designation form approved for the Plan. Copies of the form are available from the Communications Center on Merrill Lynch’s Benefits OnLine® www.benefits.ml.com. 
 19.
Beneficiary designations on an approved form will be effective at the time received by Merrill Lynch’s
OnLine® website www.benefits.ml.com. A Participant may revoke a beneficiary designation at any time by
written notice to Merrill Lynch’s OnLine® website www.benefits.ml.com or by filing a new designation
form. Any designation form previously filed by a Participant will be automatically revoked and superseded by a later-filed form. 
 20. A
Participant will be entitled to designate any number of beneficiaries on the form, and the beneficiaries may be natural or corporate persons. 

21. The failure of any Participant to obtain any recommended signature on the form will not invalidate the beneficiary designation or prohibit Alcoa from
treating such designation as valid and effective. No beneficiary will acquire any beneficial or other interest in any Stock Option prior to the death of the Participant who designated such beneficiary. 

22. Unless the Participant indicates on the form that a named beneficiary is to receive unexercised options only upon the prior death of another named
beneficiary, all beneficiaries designated on the form will be entitled and required to join in the exercise of the option. Unless otherwise indicated, all such beneficiaries will have an equal, undivided interest in all such Stock Options.

 23. Should a beneficiary die after the Participant but before the option is exercised, such beneficiary’s rights and interest in the
option award will be transferable by last will and testament of the beneficiary or the laws of descent and distribution. A named beneficiary who predeceases the Participant will obtain no rights or interest in a stock option award, nor will any
person claiming on behalf of such individual. Unless otherwise specifically indicated by the Participant on the form, beneficiaries designated by class (such as “children,” “grandchildren” etc.) will be deemed to refer to the
members of the class living at the time of the Participant’s death, and all members of the class will be deemed to take “per capita.” 

  
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STOCK OPTION TERMS AND CONDITIONS (MAY 2013) 
  

5 

 Transferable Options 
 24. Vested Stock Options may be transferred to one or more immediate family members, individually or jointly. A trust, each of whose beneficiaries is the Participant or an immediate family member, will be
deemed to be a family member for purposes of these rules. 
 25. A transfer shall be effective on the date written notice
thereof, on a form approved for this purpose, is received. Copies of the form are available from the Communications Center on Merrill Lynch’s Benefits OnLine® website www.benefits.ml.com. As a condition to transfer, the Participant shall agree to remain responsible to pay in cash the applicable taxes due upon
exercise of the option by the transferee. The Participant or the Participant’s estate will be required to provide sufficient evidence of ability to pay such taxes upon the Company’s request. 

26. A transfer shall be irrevocable; no subsequent transfer by the transferee shall be effective. Notwithstanding the foregoing, a transferee shall be
entitled to designate a beneficiary in accordance with the provisions of paragraphs 18 through 23 above. Except where a beneficiary has been designated, in the event of death of the transferee prior to option exercise, the transferee’s option
will be transferable by last will and testament of the beneficiary or the laws of descent and distribution. 
 27. Except as modified by the
provisions of paragraphs 24 through 26, all terms applicable to option exercises by Participants are applicable to exercises by transferees. The Plan administrator may make and publish additional rules applicable to exercises by transferees not
inconsistent with these provisions. 

  
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STOCK OPTION TERMS AND CONDITIONS (MAY 2013) 
  

6

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