Document:

exv4w1

 

Exhibit 4.1

STOCK TRANSFER RESTRICTION AGREEMENT

     This STOCK TRANSFER RESTRICTION AGREEMENT (this “Agreement”), dated as of July 6,
2006, is made by and between (a) Kaiser Aluminum Corporation, a Delaware corporation (the
“Company”), and (b) National City Bank, solely in its capacity as trustee (the “VEBA
Trustee”) under the VEBA Trust (as defined below), and is agreed to by Independent Fiduciary
Services, Inc., in its capacity as independent fiduciary (the “Independent Fiduciary”) of
the Retiree Plan (as defined below) with respect to Discretionary Management (as defined below) of
the Company’s common stock, par value $0.01 per share (the “New Common Stock”), held by the
VEBA Trust.

RECITALS

     WHEREAS, pursuant to (a) the Joint Plan of Reorganization of the Company, Kaiser Aluminum &
Chemical Corporation (“KACC”) and certain of their debtor affiliates (the “Plan”)
filed pursuant to Section 1121(a) of Chapter 11 of Title 11 of the United States Code (the
“Bankruptcy Code”) and confirmed by an order of the United States Bankruptcy Court for the
District of Delaware entered on February 6, 2006, which confirmation order was affirmed by an order
of the United States District Court for the District of Delaware entered on May 11, 2006, and (b)
those certain agreements entered into between KACC and each of the United Steelworkers of America,
AFL-CIO, CLC, the International Union, United Automobile, Aerospace and Agricultural Implement
Workers of America and its Local 1186, the International Association of Machinists and Aerospace
Workers, the International Chemical Workers Union Council of the United Food & Commercial Workers,
and the Paper, Allied-Industrial, Chemical and Energy Workers International Union, AFL-CIO, CLC
(collectively, the “Unions”) pursuant to Sections 1113 and 1114 of the Bankruptcy Code, the
Company was obligated to contribute to the VEBA Trust 11,439,900 shares of New Common Stock on the
effective date of the Plan (the “Effective Date”);

     WHEREAS, prior to the Effective Date, pursuant to the terms of the Protocol for Pre-Effective
Date Sales approved by an order of the United States Bankruptcy Court for the District of Delaware
(the “Bankruptcy Court”) entered on April 24, 2006, which Protocol for Pre-Effective Date
Sales was amended and restated by an order of the Bankruptcy Court entered on June 5, 2006 (as
amended and restated, the “Protocol”), the VEBA Trust sold to certain Persons (as defined below)
portions of its interest in the shares of New Common Stock to be contributed to the VEBA Trust on
the Effective Date;

     WHEREAS, in accordance with the terms of the Plan and the Protocol, on the Effective Date, the
Company issued shares of New Common Stock as follows: (a) to the VEBA Trust, 8,809,900 shares and
(b) to other Persons in accordance with the instructions of the VEBA Trust, an aggregate of
2,630,000 shares.

     WHEREAS, after giving effect to the Plan, the Company had substantial U.S. net operating loss
carryovers (the “NOLs”), the Company’s retention and use of which will enable the Company
to preserve cash, which should ultimately give it greater flexibility going forward, enabling it to
undertake actions that may enhance value;

 

 

     WHEREAS, it is in the mutual best interests of the Company and the VEBA Trust, as a
significant stockholder of the Company, that the Company retain and utilize such NOLs to the extent
possible;

     WHEREAS, the Company’s ability to retain or make full use of the NOLs is dependent, in part,
on whether the Company experiences an “ownership change” within the meaning of the relevant
provisions of the Internal Revenue Code of 1986, as amended, following the Effective Date;

     WHEREAS, the VEBA Trust received a sufficient number of shares of New Common Stock pursuant to
the Plan such that agreement with them to restrictions on transfer of such shares following the
Effective Date would help to ensure that an “ownership change” will not occur until the NOLs are
fully utilized;

     WHEREAS, the certificate of incorporation of the Company, as amended and restated in
accordance with the Plan (the “Certificate of Incorporation”), contains provisions designed
to ensure that an “ownership change” will not occur until the NOLs are fully utilized, and such
provisions contemplate an agreement between the Company and the VEBA Trust regarding restrictions
on the transfer of shares of New Common Stock by the VEBA Trust;

     WHEREAS, rapid or otherwise disorderly sales of substantial portions of the outstanding New
Common Stock could adversely affect the market price for the New Common Stock, as could the ability
of the VEBA Trust, as a significant stockholder of the Company, to sell shares of New Common Stock
freely in large blocks; and

     WHEREAS, in order to maximize the value that the reorganized company’s stockholders (including
the VEBA Trust) may ultimately receive for their shares in the public market, it is appropriate for
the VEBA Trust to agree to certain restrictions on transfer.

AGREEMENTS

     NOW, THEREFORE, in consideration of the mutual covenants herein contained, the parties hereby
agree as follows:

Article I. Definitions and Certain Interpretative Matters

     1.1 Definitions. For purposes of this Agreement, the following terms have the
following meanings:

          (a) “Agreement”: As defined in the introductory paragraph hereof.

          (b) “Bankruptcy Code”: As defined in the Recitals.

          (c) “Bankruptcy Court”: As defined in the Recitals.

          (d) “Certificate of Incorporation”: As defined in the Recitals.

          (e) “Company”: As defined in the introductory paragraph hereof.

2

 

          (f) “Discretionary Management”: The extent to which the Independent Fiduciary is
permitted to exercise authority and control over New Common Stock held by the VEBA Trust under the
documents governing the VEBA Trust.

          (g) “Effective Date”: As defined in the Recitals.

          (h) “Independent Fiduciary”: As defined in the introductory paragraph hereof.

          (i) “KACC”: As defined in the Recitals.

          (j) “New Common Stock”: As defined in the introductory paragraph hereof.

          (k) “NOLs”: As defined in the Recitals.

          (l) “Person”: Any individual, corporation, general or limited partnership, limited
liability company, joint venture, trust or other entity or association, including without
limitation any governmental authority.

          (m) “Protocol”: As defined in the Recitals.

          (n) “Restriction Release Date”: As defined in the Certificate of Incorporation.

          (o) “Restriction Period”: The period commencing on the Effective Date and ending on
the Restriction Release Date.

          (p) “Retiree Plan”: The retiree health plan known as the “VEBA for Retirees of Kaiser
Aluminum.”

          (q) “Transfer”: Any direct or indirect sale, transfer, assignment, conveyance, pledge
or other disposition.

          (r) “Unions”: As defined in the Recitals.

          (s) “VEBA Trust”: The trust that provides benefits for certain eligible retirees of
KACC represented by the Unions (or their successors) and their surviving spouses and eligible
dependents.

          (t) “VEBA Trustee”: As defined in the introductory paragraph hereof.

     1.2 Certain Interpretative Matters. Unless the context otherwise requires, (a) all
references to Articles or Sections are to Articles or Sections of this Agreement, (b) each term
defined in this Agreement has the meaning assigned to it, (c) all uses of “herein,” “hereto,”
“hereof” and words similar thereto in this Agreement refer to this Agreement in its entirety, and
not solely to the Article, Section or provision in which it appears, (d) “or” is disjunctive but
not necessarily exclusive, and (e) words in the singular include the plural and vice versa.

3

 

Article II. Restrictions on Transfers

     2.1 Preliminary Acknowledgment: The VEBA Trustee acknowledges and agrees to comply
with Section 4 of Article IV of the Certificate of Incorporation.

     2.2 Restrictions on Transfer During Restriction Period. During the Restriction
Period, unless otherwise approved in accordance with clause (A) of paragraph (a)(2) of Section 4 of
Article IV of the Certificate of Incorporation, the VEBA Trustee will not effect or cause to be
effected any Transfer of any shares of New Common Stock received by the VEBA Trust pursuant to the
Plan unless the number of such shares to be included in such Transfer, together with the number of
such shares included in all other Transfers by the VEBA Trust that have occurred (or, pursuant to
Section 2.3, are deemed to have occurred) during the 12 months immediately preceding such Transfer,
is not more than 15% of the total number of shares of New Common Stock received by the VEBA Trust
pursuant to the Plan.

     2.3 Pre-Effective Date Transactions. Unless (a) the Company otherwise agrees or (b)
it is determined in a ruling by the Internal Revenue Service that any such Transfer does not
constitute a Transfer of shares of New Common Stock on or following the Effective Date for purposes
of the applicable limitations of section 382 of the Internal Revenue Code, for purposes of
determining whether any Transfer by the VEBA Trust is permissible under Section 2.2 or Section 2.6
the shares of New Common Stock attributable to a Transfer prior to the Effective Date of portions
of its interest in the 11,439,900 shares of Common Stock that the Company was obligated to
contribute to the VEBA Trust on the Effective Date will be deemed to have been received by the VEBA
Trust pursuant to the Plan on the Effective Date and thereafter Transferred by the VEBA Trust at
the earliest possible date or dates such Transfer would have been permitted under Section 2.2, beginning with the day immediately succeeding the Effective Date (the
“Initial Deemed Sale Date”), and, in the case of a Transfer under Section 2.6, prior to
such Transfer under Section 2.6. For purposes of applying the preceding sentence to Section 2.2,
(x) in the event that the amounts otherwise deemed sold by the VEBA Trust on the Initial Deemed
Sale Date exceed the maximum amount permitted to be sold pursuant to Section 2.2 during the first
12 months after the Effective Date, such maximum amount will be deemed to be sold on the Initial
Deemed Sale Date and such excess will be deemed sold on the first anniversary of the Initial Deemed
Sale Date, and (y) in the event that the amounts otherwise deemed sold on any anniversary of the
Initial Deemed Sale Date exceed the maximum amount permitted to be sold pursuant to Section 2.2 on
such anniversary of the Initial Deemed Sale Date, such maximum amount will be deemed to be sold on
such anniversary of the Initial Deemed Sale Date and such excess will be deemed sold on the next
succeeding anniversary of the Initial Deemed Sale Date.

     2.4 Legend. Each stock certificate representing any of the shares of New Common Stock
received by the VEBA Trust pursuant to the Plan will bear a legend indicating the existence of this
Agreement and of the restrictions on transfer imposed hereby.

     2.5 Certain Reports. Prior to the Restriction Release Date, within 10 days following
each anniversary of the Effective Date, the VEBA Trustee will deliver to the Company a written
notice setting forth (a) the number of shares of New Common Stock received by it pursuant to the
Plan on or prior to such anniversary date; (b) for each Transfer that has occurred during the

4

 

12-month period ending on such anniversary date, (i) the number of shares of New Common Stock
included in such Transfer and (ii) the date of such Transfer; and (c) the maximum number of shares
of New Common Stock that the VEBA Trustee believes may be included in Transfers during the 12-month
period following such anniversary date without violating this Agreement.

     2.6 Registration Rights Agreement. Simultaneously with the execution and delivery of
this Agreement, the parties hereto are entering into a Registration Rights Agreement with respect
to shares of New Common Stock received by (i) the VEBA Trust pursuant to the Plan and (ii) certain parties that, in accordance with the
Protocol, purchased from the VEBA Trust interests entitling them to receive shares that otherwise
would have been issuable to the VEBA Trust.

Notwithstanding the provisions of Section 2.2:

	(a)	(i)	 	the Transfer of shares of New Common Stock by the VEBA Trust in an
underwritten offering contemplated by Section 2.1 of such Registration Rights Agreement
may include up to a number of shares of New Common Stock equal to 30% of the total
number of shares of New Common Stock received (or, pursuant to Section 2.3, deemed
received) by the VEBA Trust pursuant to the Plan; provided that (x) such number
of shares of New Common Stock is not more than (A) 45% of the total number of shares of
New Common Stock received (or, pursuant to Section 2.3, deemed received) by the VEBA
Trust pursuant to the Plan less (B) the number of shares included in all other
Transfers previously effected (or, pursuant to Section 2.3, deemed effected) by the
VEBA Trust during the 36 months immediately preceding such Transfer or the period
commencing on the Effective Date and ending immediately prior to such Transfer,
whichever period is shorter and (y) the shares of New Common Stock requested to be
included in such underwritten offering by the VEBA Trust have a market value of not
less than $60.0 million on the date such request is made; and

	 	(ii)	 	in the event no underwritten offering contemplated by Section
2.1 of such Registration Rights Agreement has been effected, the Transfer of shares of New
Common Stock by the VEBA Trust in an underwritten offering
contemplated by Section 3.5 of such Registration Rights Agreement may include
up to a number of shares of New Common Stock equal to (A) 45% of the total of shares of
New Common Stock received (or, pursuant to Section 2.3, deemed
received) by the VEBA Trust pursuant to the Plan less (B) the number of shares
included in all other Transfers previously effected (or, pursuant to Section
2.3, deemed effected) by the VEBA Trust during the 36 months immediately
preceding such Transfer or the period commencing on the Effective Date and
ending immediately prior to such Transfer, whichever period is shorter;
provided that (w) no underwritten offering contemplated by Section 3.5
of such Registration Right Agreement has been previously effected, (x) the
demand for such underwritten offering is made by the Union VEBA between March
31, 2007 and April 1, 2008, and (y) the shares of New Common Stock requested to
be included in such underwritten offering by the VEBA Trust

5

 

	have a market value
of not less than $60.0 million on the date such request is made; and

          (b) in the event that the Transfer by the VEBA Trust of shares of New Common Stock in such an
offering includes a number of such shares greater than the number of such shares that the VEBA
Trust could so include under Section 2.2 absent this Section 2.6, then for purposes of determining
whether any future Transfer of shares of New Common Stock by the VEBA Trust is permissible under
Section 2.2, the VEBA Trust will be deemed to have effected the Transfer of such excess shares at
the earliest possible date or dates the VEBA Trust would have been permitted to effect such
Transfer under Section 2.2 absent this Section 2.6.

Article III. Miscellaneous

     3.1 Notices. All notices, requests, claims, demands and other communications
hereunder will be in writing and will be given or made by delivery in person, by overnight courier,
by facsimile transmission, by electronic transmission or by registered or certified mail (postage
prepaid, return receipt requested) to the respective parties at the following addresses (or at such
other address for a party specified in a notice given in accordance with this Section 3.1):

	 	(a)	 	If to the Company:
	 
	 	 	 	Kaiser Aluminum Corporation

27422 Portola Parkway, Suite 350

Foothill Ranch, California 92610

Facsimile: 949-614-1930

Attention: Corporate Secretary

E-mail: john.donnan@kaiseraluminum.com
	 
	 	 	 	with a copy to:
	 
	 	 	 	Jones Day

2727 N. Harwood Street

Dallas, Texas 75223

Facsimile: 214-969-5100

Attention: Troy B. Lewis, Esq.

E-mail: tblewis@jonesday.com
	 
	 	(b)	 	If to the VEBA Trustee:
	 
	 	 	 	National City Bank

Taft-Hartley Services

20 Stanwix Street

Pittsburgh, Pennsylvania 15222

Facsimile: 412-644-6153

Attention: Gary R. Chontos

E-mail: gary.chontos@allegiantgroup.com

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	 	 	 	with a copy to:
	 
	 	 	 	National City Bank

1900 East Ninth Street, Loc.01-2174

Cleveland, OH 44114

Attn: John W. Boyd

E-mail: john.boyd@nationalcity.com

	 
	 	 	 	with a copy to:
	 
	 	 	 	Allegiant Asset Management Company

200 Public Square, 5th Floor

Cleveland, OH 44114

Attn: Robert V. Kline

E-mail: robert.kline@allegiantgroup.com

	 
	 	 	 	with a copy to:
	 
	 	 	 	Bredhoff & Kaiser, P.L.L.C.

805 Fifteenth Street, N.W.

Washington, D.C. 20005

Facsimile: 202-842-1888

Attention: Douglas L. Greenfield

E-mail: dgreenfield@bredhoff.com
	 
	 	(c)	 	If to the Independent Fiduciary:
	 
	 	 	 	Independent Fiduciary Services, Inc.

805 15th Street, N.W., Suite 1120

Washington, D.C. 20005

Facsimile: 202-898-1819

Attention: Samuel W. Halpern

E-mail: shalpern@independentfiduciary.com
	 
	 	 	 	with a copy to:
	 
	 	 	 	Kilpatrick Stockton LLP

607 14th Street, N.W., Suite 900

Washington, D.C. 20005

Facsimile: 202-585-0024

Attention: Steven J. Sacher

E-mail: ssacher@kilpatrickstockton.com

All such notices and communications will be deemed to have been delivered or given upon receipt, if
delivered personally, by electronic transmission or by overnight courier; when receipt is
acknowledged, if sent by facsimile transmission and three business days after being deposited in
the mail, if mailed.

7

 

     3.2 Assignment. Neither of the parties to this Agreement will assign or delegate any
of their respective rights or obligations under this Agreement without the prior written consent of
each of the other parties hereto. The parties intend that the terms of this Agreement apply to any
successor to the VEBA Trustee or the Independent Fiduciary, as applicable, and will use their
reasonable best efforts to cause any such successor to agree in writing to become bound by this
Agreement.

     3.3 No Third-Party Beneficiaries. Except as expressly set forth herein, this
Agreement will be binding upon and inure solely to the benefit of the parties hereto and their
respective successors and permitted assigns and nothing herein, express or implied, is intended to
or will confer upon any other Person any legal or equitable right, benefit or remedy of any nature
whatsoever under or by reason of this Agreement.

     3.4 Entire Agreement. This Agreement constitutes the entire agreement of the parties
hereto with respect to the subject matter hereof and supersedes all prior agreements and
undertakings, both written and oral, among the parties with respect to the subject matter hereof.

     3.5 Amendment and Waiver. This Agreement may not be amended or modified except by an
instrument in writing signed by both of the parties to this Agreement and assented to and
acknowledged by the Independent Fiduciary, and no provision hereof may be waived unless the waiver
is signed by the party against which enforcement of the waiver is sought.

     3.6 Counterparts. This Agreement may be executed by facsimile signature and in any
number of counterparts, each such counterpart to be deemed an original and all such counterparts,
taken together, to constitute one instrument.

     3.7 Severability. If any term or other provision of this Agreement is invalid,
illegal or unenforceable under any law or public policy, all other terms and provisions of this
Agreement will nevertheless remain in full force and effect. Upon a determination that any term or
other provision is invalid, illegal or unenforceable, the parties hereto will endeavor in good
faith to replace the invalid, illegal or unenforceable provision with a valid, legal and
enforceable provision the effect of which comes as close as possible to that of the invalid,
illegal or unenforceable provision.

     3.8 Governing Law. This Agreement will be governed by, and construed in accordance
with, the laws of the State of Delaware, without giving effect to the principles of conflict of
laws thereof.

     3.9 Specific Performance. The parties hereto agree that irreparable damage would
occur in the event any provision of this Agreement was not performed in accordance with the terms
hereof and that the parties will be entitled to specify performance of the terms hereof, in
addition to any other remedy at law or equity.

     3.10 Further Assurances. The parties hereto will do such further acts and things
necessary to ensure that the terms of this Agreement are carried out and observed.

[REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]

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     IN WITNESS WHEREOF, each of the parties has executed this Agreement as of the date first
written above.

	 	 	 	 	 
	 	 	KAISER ALUMINUM CORPORATION
	 
	 	 	 	 
	 

	 	By:
	 	     /s/ John M. Donnan
	 

	 	 	 	 
	 

	 	 	 	John M. Donnan, Vice President, Secretary
	 

	 	 	 	& General Counsel
	 
	 	 	 	 
	 	 	NATIONAL CITY BANK,
	 	 	solely in its capacity as VEBA Trustee under the VEBA
Trust and not individually
	 
	 	 	 	 
	 

	 	By:	 	     /s/ Mark O. Minar
	 

	 	 	 	 
	 

	 	 	 	Name:  Mark O. Minar
	 

	 	 	 	Title:  Vice President

 

 

ASSENT AND ACKNOWLEDGEMENT

The undersigned, by assenting to and acknowledging this Agreement, agrees not to direct or
otherwise cause the VEBA Trustee to take any action in violation of the terms of this Agreement:

INDEPENDENT FIDUCIARY SERVICES, INC.,

in its capacity as Independent Fiduciary of the Retiree Plan in respect of Discretionary Management
of the New Common Stock held by the VEBA Trust.

	 	 	 	 	 
	By:

	 	                /s/ Samuel W. Halpern	 	 
	 

	 	 

Samuel W. Halpern, Executive Vice Presidentexv4w2

 

Exhibit 4.2

REGISTRATION RIGHTS AGREEMENT

dated as of

July 6, 2006

by and among

Kaiser Aluminum Corporation

and

The Persons Listed on the

Signature Pages Attached Hereto

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 	 	 	 	Page
	ARTICLE I.
	 	DEFINITIONS AND CERTAIN INTERPRETATIVE MATTERS	 	 	2	 
	 
	 	 	 	 	 	 
	1.1
	 	Definitions	 	 	2	 
	 
	 	 	 	 	 	 
	1.2
	 	Certain Interpretative Matters	 	 	5	 
	 
	 	 	 	 	 	 
	ARTICLE II.
	 	DEMAND REGISTRATION	 	 	5	 
	 
	 	 	 	 	 	 
	2.1
	 	Filing of a Demand Registration Statement	 	 	5	 
	 
	 	 	 	 	 	 
	2.2
	 	Manner of Distribution pursuant to the Demand Registration Statement	 	 	6	 
	 
	 	 	 	 	 	 
	2.3
	 	Blackout Period with respect to Demand Registration	 	 	6	 
	 
	 	 	 	 	 	 
	2.4
	 	Selection of Underwriters	 	 	7	 
	 
	 	 	 	 	 	 
	ARTICLE III.
	 	SHELF REGISTRATION	 	 	7	 
	 
	 	 	 	 	 	 
	3.1
	 	Filing of a Shelf Registration Statement	 	 	7	 
	 
	 	 	 	 	 	 
	3.2
	 	Certain Limitations	 	 	8	 
	 
	 	 	 	 	 	 
	3.3
	 	Manner of Distribution pursuant to a Shelf Registration Statement	 	 	9	 
	 
	 	 	 	 	 	 
	3.4
	 	Blackout Period with respect to Shelf Registration	 	 	9	 
	 
	 	 	 	 	 	 
	3.5
	 	Underwritten Offerings under a Shelf Registration Statement	 	 	10	 
	 
	 	 	 	 	 	 
	ARTICLE IV.
	 	PIGGYBACK REGISTRATION	 	 	11	 
	 
	 	 	 	 	 	 
	4.1
	 	Right to Piggyback	 	 	11	 
	 
	 	 	 	 	 	 
	4.2
	 	Priority on Underwritten Piggyback Registrations	 	 	11	 
	 
	 	 	 	 	 	 
	4.3
	 	Withdrawal of Piggyback Registration	 	 	12	 
	 
	 	 	 	 	 	 
	ARTICLE V.
	 	ADDITIONAL PROVISIONS RELATING TO UNDERWRITTEN OFFERINGS	 	 	13	 
	 
	 	 	 	 	 	 
	5.1
	 	Restrictions on Sale	 	 	13	 
	 
	 	 	 	 	 	 
	5.2
	 	Participation in Underwritten Offerings	 	 	13	 
	 
	 	 	 	 	 	 
	ARTICLE VI.
	 	PROCEDURES AND EXPENSES	 	 	13	 
	 
	 	 	 	 	 	 
	6.1
	 	Registration Procedures	 	 	13	 
	 
	 	 	 	 	 	 
	6.2
	 	Information from the Holders, the VEBA Trust and the Independent  Fiduciary	 	 	16	 
	 
	 	 	 	 	 	 
	6.3
	 	Suspension of Disposition	 	 	16	 
	 
	 	 	 	 	 	 
	6.4
	 	Registration Expenses	 	 	17	 
	 
	 	 	 	 	 	 
	ARTICLE VII.
	 	INDEMNIFICATION	 	 	18	 
	 
	 	 	 	 	 	 
	7.1
	 	Indemnification by the Company	 	 	18	 
	 
	 	 	 	 	 	 
	7.2
	 	Indemnification by Holders	 	 	19	 
	 
	 	 	 	 	 	 
	7.3
	 	Conduct of Indemnification Proceedings	 	 	19	 

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TABLE OF CONTENTS

(continued)

	 	 	 	 	 	 	 
	 	 	 	 	Page
	7.4
	 	Contribution, etc.	 	 	20	 
	 
	 	 	 	 	 	 
	7.5
	 	Survival of Indemnification	 	 	21	 
	 
	 	 	 	 	 	 
	ARTICLE VIII.
	 	RULE 144	 	 	21	 
	 
	 	 	 	 	 	 
	ARTICLE IX.
	 	CERTAIN OTHER AGREEMENTS	 	 	21	 
	 
	 	 	 	 	 	 
	ARTICLE X.
	 	MISCELLANEOUS	 	 	22	 
	 
	 	 	 	 	 	 
	10.1
	 	Notices	 	 	22	 
	 
	 	 	 	 	 	 
	10.2
	 	Confidentiality	 	 	23	 
	 
	 	 	 	 	 	 
	10.3
	 	Assignment	 	 	24	 
	 
	 	 	 	 	 	 
	10.4
	 	No Third-Party Beneficiaries	 	 	24	 
	 
	 	 	 	 	 	 
	10.5
	 	Entire Agreement	 	 	24	 
	 
	 	 	 	 	 	 
	10.6
	 	Amendment and Waiver	 	 	24	 
	 
	 	 	 	 	 	 
	10.7
	 	Counterparts; Facsimile Signatures	 	 	24	 
	 
	 	 	 	 	 	 
	10.8
	 	Headings	 	 	24	 
	 
	 	 	 	 	 	 
	10.9
	 	Severability	 	 	24	 
	 
	 	 	 	 	 	 
	10.10
	 	Governing Law	 	 	25	 
	 
	 	 	 	 	 	 
	10.11
	 	Specific Performance	 	 	25	 
	 
	 	 	 	 	 	 
	10.12
	 	Further Assurances	 	 	25	 
	 
	 	 	 	 	 	 
	10.13
	 	Stock Transfer Restrictions	 	 	25	 

-ii-

 

 

REGISTRATION RIGHTS AGREEMENT

     This REGISTRATION RIGHTS AGREEMENT (this “Agreement”), dated as of July 6, 2006, is
made by and among (a) Kaiser Aluminum Corporation, a Delaware corporation (the “Company”),
(b) National City Bank, solely in its capacity as trustee (the “VEBA Trustee”) under the
VEBA Trust (as defined below), and is agreed to by Independent Fiduciary Services, Inc., in its
capacity as independent fiduciary (the “Independent Fiduciary”) of the Retiree Plan (as
defined below) with respect to Discretionary Management (as defined below) of the Company’s common
stock, par value $0.01 per share (the “New Common Stock”), held by the VEBA Trust, and (c)
the Persons (as defined below) identified on Schedule I hereto (collectively, the “VEBA
Trust Transferees”).

RECITALS

     WHEREAS, pursuant to (a) the Second Amended Joint Plan of Reorganization of the Company,
Kaiser Aluminum & Chemical Corporation (“KACC”) and Certain of Their Debtor Affiliates, as
modified, dated September 7, 2005, filed pursuant to Section 1121(a) of chapter 11 of title 11 of
the United States Code (the “Bankruptcy Code”) and confirmed by an order of the United
States Bankruptcy Court for the District of Delaware entered on February 6, 2006, which
confirmation order was affirmed by an order of the United States District Court for the District of
Delaware entered on May 11, 2006 (the “Plan”), and (b) those certain agreements entered
into between KACC and each of the United Steelworkers of America, AFL-CIO, CLC, the International
Union, United Automobile, Aerospace and Agricultural Implement Workers of America and its Local
1186, the International Association of Machinists and Aerospace Workers, the International Chemical
Workers Union Council of the United Food & Commercial Workers, and the Paper, Allied-Industrial,
Chemical and Energy Workers International Union, AFL-CIO, CLC (collectively, the “Unions”)
pursuant to Sections 1113 and 1114 of the Bankruptcy Code, the Company was obligated to contribute
to the VEBA Trust 11,439,900 shares of New Common Stock on the effective date of the Plan (the
“Effective Date”);

     WHEREAS, prior to the Effective Date, pursuant to the terms of the Protocol for Pre-Effective
Date Sales approved by an order of the United States Bankruptcy Court for the District of Delaware
(the “Bankruptcy Court”) entered on April 24, 2006, which Protocol for Pre-Effective Date
Sales was amended and restated by an order of the Bankruptcy Court entered on June 5, 2006 (as
amended and restated, the “Protocol”), the VEBA Trust sold to each of the VEBA Trust
Transferees and three other Persons a portion of its interest in the shares of New Common Stock to
be contributed to the VEBA Trust on the Effective Date;

     WHEREAS, in accordance with the terms of the Plan and the Protocol and the instructions of the
VEBA Trust, on the Effective Date, the Company issued shares of New Common Stock as follows: (a)
to the VEBA Trust, 8,809,900 shares (the “VEBA Trust Shares”), (b) to the VEBA Trust
Transferees, an aggregate of 2,330,000 shares as set forth on Schedule I hereto (the
“VEBA Trust Transferee Shares”), and (c) to three other Persons an aggregate of 300,000
shares; and

 

 

     WHEREAS, in accordance with the terms of the Plan and the Protocol, the Company desires to
provide for the registration of the sale of the Registrable Securities (as defined below) by the
Holders (as defined below) on the terms and subject to conditions set forth below.

AGREEMENTS

     NOW, THEREFORE, in consideration of the foregoing and the covenants and agreements herein
contained, and intending to be legally bound hereby, the parties hereto hereby agree as follows:

Article I. Definitions and Certain Interpretative Matters

     1.1 Definitions. For purposes of this Agreement, the following terms have the
following meanings:

     (a) “Agreement”: As defined in the introductory paragraph hereof.

     (b) “Bankruptcy Code”: As defined in the Recitals.

     (c) “Bankruptcy Court”: As defined in the Recitals.

     (d) “Business Day”: Any day, other than a Saturday or Sunday, on which
national banking institutions in New York, New York, are open.

     (e) “Certificate of Incorporation”: The Amended and Restated Certificate of
Incorporation of the Company, as amended from time to time.

     (f) “Company”: As defined in the introductory paragraph hereof.

     (g) “Demand Blackout Period”: Either a Primary Demand Blackout Period or a Secondary
Demand Blackout Period.

     (h) “Demand Period”: As defined in Section 2.1(a).

     (i) “Demand Registration Statement”: As defined in Section 2.1(a).

     (j) “Discretionary Management”: The extent to which the Independent Fiduciary
is permitted to exercise authority and control over New Common Stock held by the VEBA Trust
under the documents governing the VEBA Trust.

     (k) “Effective Date”: As defined in the Recitals.

     (l) “Exchange Act”: The Securities Exchange Act of 1934, as amended.

     (m) “Holders”: Collectively the VEBA Trust, acting through the VEBA Trustee or
any successor to the VEBA Trustee at the direction of the Independent
Fiduciary or any successor to the Independent Fiduciary, and the VEBA Trust
Transferees, in each case for so long as such Person holds Registrable Securities.

2

 

     (n) “Indemnified Party”: As defined in Section 7.3.

     (o) “Indemnifying Party”: As defined in Section 7.3.

     (p) “Independent Fiduciary”: As defined in the introductory paragraph hereof.

     (q) “Initial Shelf Registration Statement”: As defined in Section
3.1(a).

     (r) “KACC”: As defined in the Recitals.

     (s) “Losses”: As defined in Section 7.1.

     (t) “New Common Stock”: As defined in the introductory paragraph hereof.

     (u) “Other Holders”: As defined in Section 4.2.

     (v) “Person”: Any individual, corporation, general or limited partnership,
limited liability company, joint venture, trust or other entity or association, including
without limitation any governmental authority.

     (w) “Piggyback Notice”: As defined in Section 4.1.

     (x) “Piggyback Registration”: As defined in Section 4.1.

     (y) “Plan”: As defined in the Recitals.

     (z) “Primary Demand Blackout Period”: As defined in Section 2.3(a).

     (aa) “Primary Shelf Blackout Period”: As defined in Section 3.4(a).

     (bb) “Prospectus”: The prospectus included in the applicable Registration
Statement, as supplemented by any and all prospectus supplements and as amended by any and
all amendments (including without limitation post-effective amendments) and including
without limitation all material incorporated by reference or deemed to be incorporated by
reference in such prospectus.

     (cc) “Protocol”: As defined in the Recitals.

     (dd) “Registrable Securities”: Collectively (i) the VEBA Trust Shares, (ii)
the VEBA Trust Transferee Shares, and (iii) any securities paid, issued or distributed on
account of any such shares by way of stock dividend, stock split or distribution, or in
exchange for or in replacement of any such shares in connection with a combination of shares, recapitalization, reorganization, merger or consolidation, or otherwise;
provided, however, that as to any Registrable Securities, such securities will irrevocably
cease to constitute “Registrable Securities” upon the earliest to occur of: (A) the date on
which the securities are disposed of pursuant to an effective registration statement under
the Securities Act; (B) the date on which the securities are distributed to the public under
and in accordance with Rule 144 (or any successor provision) under the Securities Act;

3

 

(C) the date on which the securities may be freely sold publicly without either registration
under the Securities Act or compliance with any restrictions, including without limitation
restrictions as to volume or manner of sales, under Rule 144 (or any successor provision);
(D) the date on which the securities have been transferred to any Person; or (E) the date of
which the securities cease to be outstanding.

     (ee) “Registration Statement”: Any registration statement of the Company under
the Securities Act that covers any of the Registrable Securities pursuant to the provisions
of this Agreement, including without limitation the related Prospectus, all amendments and
supplements to such registration statement (including without limitation post-effective
amendments), and all schedules, all exhibits and all materials incorporated by reference or
deemed to be incorporated by reference in such registration statement.

     (ff) “Retiree Plan”: The retiree health plan known as “VEBA for Retirees of
Kaiser Aluminum.”

     (gg) “Rule 144”: Rule 144 under the Securities Act, as such Rule may be
amended from time to time, or any similar rule or regulation hereafter adopted by the SEC.

     (hh) “SEC”: The Securities and Exchange Commission.

     (ii) “Secondary Demand Blackout Period”: As defined in Section 2.3(b).

     (jj) “Secondary Shelf Blackout Period”: As defined in Section 3.4(b).

     (kk) “Securities Act”: The Securities Act of 1933, as amended.

     (ll) “Shelf Blackout Period”: Either a Primary Shelf Blackout Period or a
Secondary Demand Blackout Period.

     (mm) “Shelf Registration Statement”: The Initial Shelf Registration Statement
or a Substitute Shelf Registration Statement, as the case may be.

     (nn) “Substitute Shelf Registration Statement”: As defined in Section 3.1(b).

     (oo) “Substitution Date”: As defined in Section 3.1(b).

     (pp) “Termination Date”: As defined in Section 3.1(a).

     (qq) “Underwritten Demand Offering Notice”: As defined in Section 2.1(b).

     (rr) “Underwritten Offering”: An offering in which securities of the Company
are sold to one or more underwriters for reoffering to the public.

     (ss) “Unions”: As defined in the Recitals.

4

 

     (tt) “VEBA Trust”: The trust that provides benefits for certain eligible
retirees of KACC represented by the Unions and their surviving spouses and eligible
dependents.

     (uu) “VEBA Trustee”: As defined in the introductory paragraph hereof.

     (vv) “VEBA Trust Shares”: As defined in the Recitals.

     (ww) “VEBA Trust Transferee”: As defined in the introductory paragraph hereof.

     (xx) “VEBA Trust Transferee Shares”: As defined in the Recitals.

     1.2 Certain Interpretative Matters. Unless the context otherwise requires, (a) all
references to Articles or Sections are to Articles or Sections of this Agreement, (b) each term
defined in this Agreement has the meaning assigned to it, (c) all uses of “herein,” “hereto,”
“hereof” and words similar thereto in this Agreement refer to this Agreement in its entirety, and
not solely to the Article, Section or provision in which it appears, (d) “or” is disjunctive but
not necessarily exclusive, and (e) words in the singular include the plural and vice versa. Unless
otherwise specified, the use of the term “day” will be deemed to be a calendar day and not a
Business Day.

Article II. Demand Registration

     2.1 Filing of a Demand Registration Statement.

          (a) At any time during the period commencing on the Effective Date and ending March 31, 2007
(the “Demand Period”),  the VEBA Trust may (and, if so directed by the
Independent Fiduciary, will) request in writing that the Company file a Registration Statement
covering the resale of its Registrable Securities in an Underwritten Offering (a “Demand
Registration Statement”), which request shall specify the number of Registrable Securities held
by the VEBA Trust to be included on such Registration Statement. The Company will (i) prepare and
file the Demand Registration Statement as promptly as practicable (and, in any event within 90
days) following receipt of such request, (ii) use commercially reasonable efforts to cause the
Demand Registration Statement to be declared effective under the Securities Act as promptly as
practicable after such filing, and (iii) use commercially reasonable efforts to cause the Demand
Registration Statement to remain continuously effective during the period commencing on the
effectiveness thereof and ending on the date that is 60 days thereafter or such earlier date on
which all Registrable Securities covered by the Demand Registration Statement
have been sold pursuant thereto (subject to extension pursuant to Section 6.3), all
subject to and in accordance with this Article II, Article V and Article
VI.

          (b) Upon receipt of a request for the filing of a Demand Registration Statement for an
Underwritten Offering pursuant to Section 2.1(a), the Company will promptly deliver written
notice of the proposed Underwritten Offering (an “Underwritten Demand Offering Notice”) to
each of the VEBA Trust Transferees. Subject to the remaining provisions of this Section
2.1(b), the Company will include on the Demand Registration Statement all Registrable
Securities held by a VEBA Trust Transferee with respect to which the Company has

5

 

received a written
request for such inclusion from such VEBA Trust Transferee within 10 days after delivery of the
Underwritten Demand Offering Notice, and the Company and the VEBA Trust will cause the managing
underwriter or underwriters of the proposed Underwritten Offering pursuant to the Demand
Registration Statement to permit such VEBA Trust Transferee to include all such Registrable
Securities in such Underwritten Offering on the same terms and conditions as any Registrable
Securities included therein by the VEBA Trust. Notwithstanding the foregoing, if the managing
underwriter or underwriters of such Underwritten Offering advise the Company, the VEBA Trust and
the VEBA Trust Transferees that have requested inclusion of Registrable Securities in such
Underwritten Offering that, in its or their good faith judgment, the total number of Registrable
Securities that the VEBA Trust and such VEBA Trust Transferees propose to include in such
Underwritten Offering exceeds the number of Registrable Securities that can be sold in such
Underwritten Offering without being materially detrimental to the success of such Underwritten
Offering, then the Company will include on the Demand Registration Statement the full number of
Registrable Securities that, in the opinion of such managing underwriter or underwriters, can be
sold without being materially detrimental to the success of such Underwritten Offering allocated on
a pro rata basis among the VEBA Trust and such VEBA Trust Transferees based on the relationship of
the number of Registrable Securities requested to be included on such Demand Registration Statement
by each of them to the total number of Registrable Securities requested to be included on the
Demand Registration Statement by all of them (subject to any other agreement between them).

          (c) Use of Available Form. The Demand Registration Statement will be filed on Form
S-1 or other appropriate form as the Company is then eligible to use.

          (d) Certain Limitations. Notwithstanding anything contained herein to the contrary,
(i) the Company will not be required to take any action pursuant to this Section 2.1 if the
Registrable Securities requested to be included on a Demand Registration Statement by the VEBA
Trust have a market value of less than $60.0 million in the aggregate on the date such request is
made under Section 2.1(a), and (ii) the Company will be required to effect only one
registration pursuant to this Section 2.1. Except as provided in the remaining provisions
of this Section 2.1(d), a registration requested pursuant to Section 2.1(a) will
not be deemed to be effected if it has not been declared effective and kept effective as
contemplated by Section 2.1(a). At any time prior to the effective date of a Demand
Registration Statement, the VEBA Trust may (and, if so directed by the Independent Fiduciary, will)
revoke its request for registration pursuant to Section 2.1(a); in such event, either (A)
the VEBA Trust will reimburse
the Company for all its out-of-pocket expenses incurred in the preparation, filing and
processing of such registration, in which case the requested registration that has been revoked
will not be deemed to have been effected for purposes of this Section 2.1(d), or (B) the
requested registration that has been revoked will be deemed to have been effected for purposes of
this Section 2.1(d); provided, however, that, if such revocation was based on the Company’s
failure to comply in any material respect with its obligations hereunder, such reimbursement will
not be required and such registration will not be deemed to have been effected for purposes of this
Section 2.1(d).

     2.2 Manner of Distribution pursuant to the Demand Registration Statement. The Demand
Registration Statement will permit the disposition of the Registrable Securities covered thereby in
one Underwritten Offering.

6

 

     2.3 Blackout Period with respect to Demand Registration.

          (a) Notwithstanding anything contained in Section 2.1 to the contrary, if (i) at any
time during the Demand Period, the Company files or proposes to file a registration statement under
the Securities Act with respect to an offering of equity securities of the Company for its own
account and (ii) (A) in the case of an offering that is not an Underwritten Offering, the Company
gives the VEBA Trust and the VEBA Trust Transferees reasonable notice in writing that the Board of
Directors of the Company has determined, in the good faith exercise of its reasonable business
judgment, that a sale or distribution of Registrable Securities would adversely affect such
offering or (B) in the case of an Underwritten Offering, the managing underwriter or underwriters
advise the Company in writing that a sale or distribution of Registrable Securities would adversely
affect such offering (in which case the Company will give the VEBA Trust and the VEBA Trust
Transferees reasonable notice in writing of such advice), then the Company will not be obligated to
effect the filing of the Demand Registration Statement pursuant to Section 2.1(a) during
the period (a “Primary Demand Blackout Period”) that is 30 days prior to the date the
Company estimates in good faith will be the date of the filing of, and ending on the date which is
60 days following the effective date of, the registration statement the Company so proposes to
file.

          (b) Notwithstanding anything contained in Section 2.1 to the contrary, if the Board of
Directors of the Company determines, in the good faith exercise of its reasonable business
judgment, that the registration and distribution of Registrable Securities (i) would materially
impede, delay or interfere with any financing, acquisition, corporate reorganization or other
significant transaction, or any negotiations, discussions or pending proposals with respect
thereto, involving the Company or any of its subsidiaries or (ii) would require disclosure of
non-public material information, the disclosure of which would be materially detrimental to the
Company, the Company will promptly give the VEBA Trust and the VEBA Trust Transferees written
notice of such determination and will be entitled to postpone the preparation, filing or
effectiveness of the Demand Registration Statement contemplated by Section 2.1(a) for a
reasonable period of time (a “Secondary Demand Blackout Period”) not to exceed 90 days.

          (c) Notwithstanding anything contained in this Section 2.3 to the contrary, during the
Demand Period, there will be no more than one Demand Blackout Period.

     2.4 Selection of Underwriters. The managing underwriter or underwriters of the
Underwritten Offering pursuant to a Demand Registration Statement will be selected by the VEBA
Trust, subject to the approval of the Company, which approval will not be unreasonable withheld.

Article III. Shelf Registration

     3.1 Filing of a Shelf Registration Statement.

          (a) At any time following March 31, 2007, the VEBA Trust may (and, if so directed by the
Independent Fiduciary, will) request in writing that the Company file a Registration Statement
covering the resale of all Registrable Securities held by the VEBA Trust on a continuous basis
under and in accordance with Rule 415 under the Securities Act (the

7

 

“Initial Shelf Registration Statement”). The Company will (i) prepare and file the
Initial Shelf Registration Statement as promptly as practicable (and in any event within, if the
Initial Shelf Registration Statement is on Form S-3 (or any applicable successor form), 60 days or,
if the Initial Shelf Registration Statement is on any other form, 90 days) following receipt of
such request, (ii) use commercially reasonable efforts to cause the Initial Shelf Registration
Statement to be declared effective under the Securities Act as promptly as practicable after such
filing, and (iii) use commercially reasonable efforts to cause the Initial Shelf Registration
Statement, once effective, to remain continuously effective until the first day on which there
ceases to be any Registrable Securities held by the VEBA Trust (the “Termination Date”),
all subject to and in accordance with this Article III, Article V and Article
VI.

          (b) If the Initial Shelf Registration or any Substitute Shelf Registration Statement ceases to
be effective for any reason at any time prior to the Termination Date, in accordance with
Section 5.1(d) the Company will use commercially reasonable efforts to obtain the prompt
withdrawal of any order suspending the effectiveness thereof. In the event that any such order is
not withdrawn on or prior to the date that is 45 days after the date of such order (the
“Substitution Date”), the Company will either:

          (i) (A) prepare and file a post-effective amendment to such Shelf Registration
Statement as promptly as practicable following the Substitution Date, (B) use commercially
reasonable efforts to cause such Shelf Registration Statement, as so amended, to again be
declared effective under the Securities Act as promptly as practicable after such amendment
is filed with the SEC, and (C) use commercially reasonable efforts to cause such Shelf
Registration Statement as so amended, once effective, to remain continuously effective until
the Termination Date; or

          (ii) (A) file a separate Registration Statement covering the resale of the Registrable
Securities on a continuous basis under and in accordance with Rule 415 under the Securities
Act (any such registration statement, a “Substitute Shelf Registration Statement”)
as promptly as practicable (and in any event within, if the Substitute Shelf Registration
Statement is on Form S-3 (or any applicable successor form), 60 days or, if the Substitute
Shelf Registration Statement is on any other form, 90 days) following the Substitution Date,
(B) use commercially reasonable efforts to cause such Substitute Shelf Registration
Statement to be declared effective under the Securities Act as promptly as practicable after
such Substitute Shelf Registration Statement is filed with the SEC, and (C) use commercially
reasonable efforts to cause such Substitute Shelf Registration Statement, once effective, to
remain continuously effective until the Termination Date;

all subject to and in accordance with this Article III, Article V and Article
VI.

          (c) Each Shelf Registration Statement will be filed on Form S-3 (or any applicable successor
form); provided, however, that if the Company is not then eligible to register the Registrable
Securities for resale on Form S-3 (or any applicable successor form), such Shelf Registration
Statement will be filed on any such other form as the Company is then eligible to so use. If, at
any time while there is a Shelf Registration Statement on a form other than Form S-3 (or any
applicable successor form), the Company becomes eligible to use Form S-3 (or any applicable
successor form), the Company will take any action as may be reasonably

8

 

necessary to convert such Shelf Registration Statement to a Registration Statement on Form S-3
(or any applicable successor form) as promptly as practicable. Similarly, if, at any time while
there is a Shelf Registration Statement on Form S-3 (or any applicable successor form), the Company
becomes ineligible to use Form S-3 (or any applicable successor form), the Company will take any
action as may be necessary to convert such Shelf Registration Statement to a Registration Statement
on such other form that the Company is then eligible to use as promptly as practicable.

     3.2 Certain Limitations. Notwithstanding anything to the contrary herein contained,
the Company will not be required to take any action pursuant to Section 3.1(a): (i) if the
Company has effected a registration contemplated by Section 2.1(a) within the 180-day
period next preceding such request; (ii) if, at the time if such request, a demand for registration
contemplated by Section 2.1(a) has been made and not revoked and such registration has not
yet been effected; or (iii) if, at the time of such request, the Stock Transfer Restriction
Agreement would prohibit the VEBA Trust from immediately selling a number of Registrable Securities
it would then be permitted to sell in compliance with the restrictions of Rule 144.

     3.3 Manner of Distribution pursuant to a Shelf Registration Statement. Any Shelf
Registration Statement will permit the disposition of the Registrable Securities: (a) in one or
more Underwritten Offerings, subject to Section 3.5; (b) through block trades; (c) through
broker transactions; (d) though at-market transactions; and (e) in any other manner as may be
reasonably requested by either of the Holders.

     3.4 Blackout Period with respect to Shelf Registration.

          (a) Notwithstanding anything contained in Section 3.1 to the contrary, if (i) at any
time during which (A) the VEBA Trust may request a registration pursuant to Section 2.1(a)
or (B) the Company is obligated to file a post-effective amendment to a Shelf Registration
Statement or a Substitute Shelf Registration Statement pursuant to Section 3.1(b), the
Company files or proposes to file a registration statement under the Securities Act with respect to
an offering of equity securities of the Company for its own account and (ii) (A) in the case of an
offering that is not an Underwritten Offering, the Company gives the VEBA Trust reasonable notice
in writing that the Board of Directors of the Company has determined, in the good faith exercise of
its reasonable business judgment, that a sale or distribution of Registrable Securities would
adversely affect such offering or (B) in the case of an Underwritten Offering, the managing
underwriter or underwriters advise the Company in writing that a sale or distribution of
Registrable Securities would adversely affect such offering (in which case the Company will give
the VEBA Trust reasonable notice in writing of such advice), then the Company will not be obligated
to effect the filing of the Initial Shelf Registration Statement pursuant to Section 3.1(a)
or the filing of a post-effective amendment to a Shelf Registration Statement or a Substitute Shelf
Registration Statement pursuant to Section 3.1(b) during the period (a “Primary Shelf
Blackout Period”) that is 30 days prior to the date the Company estimates in good faith will be
the date of the filing of, and ending on the date which is 60 days following the effective date of,
the registration statement the Company so proposes to file.

          (b) Notwithstanding anything contained in Section 3.1 to the contrary, if the Board of
Directors of the Company determines, in the good faith exercise of its reasonable

9

 

business judgment, that the registration and distribution of Registrable Securities (i) would
materially impede, delay or interfere with any financing, acquisition, corporate reorganization or
other significant transaction, or any negotiations, discussions or pending proposals with respect
thereto, involving the Company or any of its subsidiaries or (ii) would require disclosure of
non-public material information, the disclosure of which would be materially detrimental to the
Company, the Company will promptly give the VEBA Trust written notice of such determination and
will be entitled to postpone the preparation, filing or effectiveness of the Initial Shelf
Registration Statement contemplated by Section 3.1(a) or any post-effective amendment to a
Shelf Registration Statement or a Substitute Shelf Registration Statement pursuant to Section
3.1(b) for a reasonable period of time (a “Secondary Shelf Blackout Period”) not to
exceed 90 days.

          (c) Notwithstanding anything contained in this Section 3.4 to the contrary, during any
consecutive 12-month period, there will be no more than one Blackout Period.

     3.5 Underwritten Offerings under a Shelf Registration Statement.

          (a) If the VEBA Trust so requests in writing, the Company will effect pursuant to the
then-effective Shelf Registration Statement an Underwritten Offering; provided, however, that the
Company will not be required to take any action in response to any such request (i) if the Company
has effected an Underwritten Offering pursuant to this Section 3.5(a) within the 180-day
period next preceding such request or (ii) if the Registrable Securities requested to be included
in the Underwritten Offering have a market value of less than $10.0 million on the date such
request is made under this Section 3.5.

          (b) The VEBA Trust may, at any time prior to execution of the underwriting agreement (or other
similar agreement) relating to such Underwritten Offering, withdraw any Registrable Securities from
such Underwritten Offering by providing a written notice to the Company. In the event all
Registrable Securities are so withdrawn, either (i) the VEBA Trust will reimburse the Company for
all its out-of-pocket expenses incurred in connection with the proposed Underwritten Offering in
excess of the amount of expenses relating solely to the maintenance of such Shelf Registration
Statement, in which case the Underwritten Offering that has been withdrawn will not be deemed to
have been effected for purposes of Section 3.5(a), or (ii) the Underwritten Offering that
has been withdrawn will be deemed to have been effected for purposes of Section 3.5(a);
provided, however, that, if such withdrawal was based on the Company’s failure to comply in any
material respect with its obligations hereunder, such reimbursement will not be required and the
proposed Underwritten Offering will not be deemed to have been effected for purposes of Section
3.5(a). A withdrawal will be irrevocable and, after making such withdrawal, a Holder will no
longer have any right to include the Registrable Securities so withdrawn in that Underwritten
Offering.

          (c) The managing underwriter or underwriters of the Underwritten Offering relating thereto
will be selected by the VEBA Trust, subject to the approval of the Company, which approval will not
be unreasonably withheld.

10

 

Article IV. Piggyback Registration.

     4.1 Right to Piggyback. If at any time the Company proposes to file a registration
statement under the Securities Act with respect to an offering of any class of equity securities
(other than (a) a registration statement on Form S-4, Form S-8 or any applicable successor forms
thereto or filed solely in connection with an offering made solely to then-existing stockholders or
employees of the Company or (b) a Shelf Registration Statement), whether or not for its own
account, then the Company will give written notice (the “Piggyback Notice”) of such
proposed filing to the VEBA Trust at least 45 days before the anticipated filing date of such
registration statement. Such notice will offer the VEBA Trust the opportunity to register such
amount of Registrable Securities as the VEBA Trust may request (a “Piggyback
Registration”). Subject to Section 4.2, the Company will include in the Piggyback
Registration all Registrable Securities with respect to which the Company has received written
requests for such inclusion within 15 days after delivery of the Piggyback Notice.

     4.2 Priority on Underwritten Piggyback Registrations. If the Piggyback Registration
is an Underwritten Offering, the Company will cause the managing underwriter or underwriters of
that proposed offering to permit the VEBA Trust, if it has requested Registrable Securities to be
included in the Piggyback Registration, to include all such Registrable Securities on the same
terms and conditions as any similar securities, if any, of the Company. Notwithstanding the
foregoing, if the managing underwriter or underwriters of such Underwritten Offering advise the
Company and the VEBA Trust that, in its or their good faith judgment, the total amount of
securities that the Company, the VEBA Trust and all other Persons having rights to participate in
such Piggyback Registration (collectively, the “Other Holders”) propose to include in such
offering exceeds the amount of securities that can be sold in that offering without being
materially detrimental to the success of such Underwritten Offering, then:

     (a) if such Piggyback Registration is a primary registration by the Company for its own
account, the Company will include in such Piggyback Registration: (i) first, all securities
to be offered by the Company; and (ii) second, up to the full amount of securities requested
to be included in such Piggyback Registration by the VEBA Trust and Other Holders (allocated
on a pro rata basis among the VEBA Trust and Other Holders, based on the relationship of the
amount of securities requested to be included in such registration by the VEBA Trust or
Other Holder to the total amount of securities requested to be included in such registration
by the VEBA Trust and Other Holders, subject to any other agreement among them) so that the
total amount of securities to be included in such Underwritten Offering is the full amount
that, in the opinion of such managing underwriter or underwriters, can be sold without being
materially detrimental to the success of such Underwritten Offering; and

     (b) if such Piggyback Registration is an underwritten secondary registration for the
account of holders of securities of the Company, the Company will include in such
registration: (i) first, all securities of the Persons exercising “demand” registration
rights requested to be included therein (including without limitation the Person who demands
registration and any Persons who are entitled to participate in such Piggyback Registration
pursuant to the same agreement as the Person demanding such registration); and (ii) second,
up to the full amount of securities requested to be included in such

11

 

Piggyback Registration by the VEBA Trust and Other Holders (allocated on a pro rata
basis among the VEBA Trust and Other Holders, based on the relationship of the amount of
securities requested to be included in such registration by the VEBA Trust or Other Holder
to the total amount of securities requested to be included in such registration by the VEBA
Trust and Other Holders, subject to any other agreement among them) so that the total amount
of securities to be included in such Underwritten Offering is the full amount that, in the
written opinion of such managing underwriter or underwriters, can be sold without being
materially detrimental to the success of such Underwritten Offering.

     4.3 Withdrawal of Piggyback Registration.

          (a) If at any time after giving the Piggyback Notice and prior to the effective date of the
Registration Statement filed in connection with the Piggyback Registration, the Company determines
for any reason not to register or to delay the Piggyback Registration, the Company may, at its
election, give written notice of its determination to the VEBA Trust and (i) in the case of a
determination not to register, will be relieved of its obligation to register any Registrable
Securities in connection with the abandoned Piggyback Registration, without prejudice, and (ii) in
the case of a determination to delay the Piggyback Registration, will be permitted to delay the
registration for a period not exceeding 180 days.

          (b) The VEBA Trust may withdraw any of its Registrable Securities to be included in a
Piggyback Registration from such Piggyback Registration by providing a written notice to the
Company; provided, however, that (i) the VEBA Trust’s request must be made prior to execution of
the underwriting agreement with respect to an Underwritten Offering or, if the Piggyback
Registration does not involve an Underwritten Offering, at least three Business Days prior to the
filing of the Registration Statement covering the Piggyback Registration and (ii) the withdrawal
will be irrevocable and, after making such withdrawal, the VEBA Trust will no longer have any right
to include the Registrable Securities so withdrawn in that Piggyback Registration.

Article V. Additional Provisions Relating to Underwritten Offerings

     5.1 Restrictions on Sale. In connection with any Underwritten Offering, the
Registrable Securities which are excluded from such Underwritten Offering by reason of the
underwriter’s marketing limitation or are withdrawn from such Underwritten Offering and the other
Registrable Securities not originally requested to be included in such Underwritten Offering will
not be included in that Underwritten Offering, and, if so requested pursuant to a timely written
notice by the managing underwriter or underwriters, the Holder or Holders thereof will agree not to
effect any public sale or distribution (or any other type of sale as the managing underwriter or
underwriters reasonably determine is necessary in order to effect the Underwritten Offering) of any
such Registrable Securities, including without limitation a sale under and in accordance with Rule
144, during the 10 days prior to, and during the 90 days following, the closing date of such
Underwritten Offering, with such extensions as are customarily requested by the managing
underwriter or underwriters in similar offerings, but not to exceed 180 days following such closing
date. In the event of such a request, the Company may impose, during such period, appropriate
stop-transfer instructions with respect to the Registrable Securities subject to such restrictions.

12

 

     5.2 Participation in Underwritten Offerings. With respect to any Underwritten
Offering, the inclusion of a Holder’s Registrable Securities therein will be conditioned upon such
Holder’s participation in such Underwritten Offering, including without limitation the execution
and delivery by such Holder of an underwriting agreement in form, scope and substance as is
customary in Underwritten Offerings and the completion, execution and delivery by such Holder of
all questionnaires, powers of attorney, indemnities, underwriting agreements and other documents
reasonably required under the terms of such underwriting agreement.

Article VI. Procedures and Expenses

     6.1 Registration Procedures. In connection with the Company’s registration
obligations pursuant to Articles II, III and IV, the Company will:

     (a) before filing any Registration Statement, any Prospectus or any amendment or
supplements thereto, furnish to each participating Holder and its counsel copies thereof as
proposed to be filed, sufficiently in advance of filing to provide them with a reasonable
opportunity to review such documents and comment thereon;

     (b) prepare and file with the SEC any amendments (including without limitation any
post-effective amendments) to the Registration Statement and any supplements to the
Prospectus as may be necessary to keep the Registration Statement effective until all
Registrable Securities covered by the Registration Statement are sold in accordance with the
intended plan of distribution set forth in the Registration Statement as so amended or in
such Prospectus as so supplemented;

     (c) promptly following its actual knowledge thereof, notify each participating Holder
and the managing underwriter or underwriters, if any:

     (i) when a Prospectus or any Prospectus supplement or amendment has been filed
and, with respect to a Registration Statement or any post-effective amendment, when
such Registration Statement or post-effective amendment has become effective;

     (ii) of any request by the SEC or any other governmental authority for
amendments or supplements to a Registration Statement or related Prospectus or for
additional information or any comments by the SEC or any other governmental
authority relating to any document referred to in Section 6.1(c)(i);

     (iii) of the issuance by the SEC or any other governmental authority of any
stop order suspending the effectiveness of a Registration Statement or the
initiation of any proceedings for that purpose;

     (iv) of the receipt by the Company of any written notification with respect to
the suspension of the qualification or exemption from qualification of any of the
Registrable Securities for sale in any jurisdiction or the initiation or threatening
of any proceeding for such purpose;

13

 

     (v) that a statement made in a Registration Statement or Prospectus is or has
become untrue in any material respect or that a change in a Registration Statement
or Prospectus or other document must be made so that (A) in the case of a
Registration Statement, it will not contain any untrue statement of a material fact
or omit to state any material fact required to be stated therein or necessary to
make the statements therein not misleading and (B) in the case of a Prospectus, it
will not contain any untrue statement of a material fact or omit to state any
material fact required to be stated therein or necessary to make the statements
therein not misleading in light of the circumstances under which they were made; and

     (vi) of the Company’s reasonable determination that a post-effective amendment
to a Registration Statement is necessary;

     (d) use its commercially reasonable efforts to obtain the withdrawal of any order
suspending the effectiveness of a Registration Statement or the lifting of any suspension of
the qualification or exemption from qualification of any of the Registrable Securities for
sale in any jurisdiction, at the earliest practicable date;

     (e) furnish to each participating Holder and the managing underwriter or underwriters,
if any, at least one conformed copy of any Registration Statement and any post-effective
amendment thereto, including without limitation financial statements (but excluding all
schedules, all exhibits and all materials incorporated or deemed incorporated therein by
reference), and copies of any Prospectus, including without limitation all supplements
thereto, in such quantities as such Holders may reasonably request;

     (f) prior to any public offering of Registrable Securities, register or qualify or
cooperate with each participating Holder, the managing underwriter or underwriters, if any,
and their respective counsel in connection with the registration or qualification (or
exemption from such registration or qualification) of such Registrable Securities for offer
and sale under the securities or blue sky laws of such jurisdictions within the United
States as the participating Holder or any managing underwriter or underwriters reasonably
request in writing and maintain each registration or qualification (or exemption therefrom)
effective during the period such Registration Statement is required to be kept effective;
provided, however, the Company will not be required to qualify generally to do business in
any jurisdiction in which it is not then so qualified or take any action which would subject
it to general service of process or taxation in any jurisdiction in which it is not then so
subject;

     (g) as promptly as practicable upon the occurrence of any event contemplated by
Section 6.1(c)(v) or 6.1(c)(vi), prepare and file a post-effective amendment
to the applicable Registration Statement or a supplement to the related Prospectus, or file
any other required document, so that, as thereafter delivered to the purchasers of the
Registrable Securities being sold thereunder, such Prospectus will not contain an untrue
statement of a material fact or omit to state any material fact required to be stated
therein or necessary to make the statements therein not misleading;

14

 

     (h) enter into customary and reasonable agreements (including without limitation an
underwriting agreement) and take all other actions reasonably necessary or desirable to
expedite or facilitate the disposition of the Registrable Securities and, in connection
therewith, whether or not an underwriting agreement is entered into and whether or not the
registration is an Underwritten Offering:

     (i) use its commercially reasonable efforts to obtain opinions of counsel to
the Company and updates thereof (which counsel and opinions (in form, scope and
substance) are reasonably satisfactory to each participating Holder and the managing
underwriter or underwriters, if any), addressed to each participating Holder and the
managing underwriter or underwriters, if any, covering the matters customarily
covered in opinions requested in Underwritten Offerings and such other matters as
may be reasonably requested by any participating Holder or any underwriter, and

     (ii) use its commercially reasonable efforts to obtain “comfort” letters and
updates thereof from the independent certified public accountants of the Company
addressed to each participating Holder and the managing underwriter or underwriters,
if any, covering the matters customarily covered in “comfort” letters in connection
with Underwritten Offerings;

     (i) upon reasonable notice and at reasonable times during normal business hours, make
available for inspection by a representative of each participating Holder and any
underwriter participating in any disposition of Registrable Securities and their respective
counsel or accountants, all financial and other records, pertinent corporate documents and
properties of the Company, and cause the officers, directors and employees of the Company to
supply all information reasonably requested by any such representative, underwriter, counsel
or accountant in connection with the applicable Registration Statement;

     (j) cause all Registrable Securities to be listed or accepted for quotation on each
national securities exchange, national securities association or automated quotation system
on which similar securities issued by the Company are then listed or quoted; and

     (k) use its commercially reasonable efforts to comply with all applicable rules and
regulations of the SEC relating to such registration and make generally available to its
security holders earning statements satisfying the provisions of Section 11(a) of the
Securities Act, provided that the Company will be deemed to have complied with this
Section 6.1(j) if it has satisfied the provisions of Rule 158 under the Securities
Act (or any similar rule promulgated under the Securities Act).

     6.2 Information from the Holders, the VEBA Trust and the Independent Fiduciary.

          (a) Each Holder (and, if such Holder is the VEBA Trust, the VEBA Trustee and the Independent
Fiduciary) whose Registrable Securities are included in any Registration Statement pursuant to this
Agreement shall furnish to the Company such information regarding such Holder, the VEBA Trustee or
the Independent Fiduciary, as the case may be, and their plan

15

 

and method of distribution of such Registrable Securities as the Company may reasonably
request in writing and as shall be required in connection with such registration or the
registration or qualification of such Registrable Securities under any applicable state securities
or blue sky law. The Company may refuse to proceed with the registration of such Holder’s
Registrable Securities if such Holder (or, if such Holder is the VEBA Trust, the VEBA Trustee or
the Independent Fiduciary) unreasonably fails to furnish such information within a reasonable time
after receiving such request.

          (b) Each participating Holder (and, if such Holder is the VEBA Trust, the VEBA Trustee and the
Independent Fiduciary) will as expeditiously as possible (i) notify the Company that a statement
made in a Registration Statement or Prospectus regarding such participating Holder, the VEBA
Trustee or the Independent Fiduciary, as the case may be, based on information furnished to the
Company pursuant to Section 6.2(a) is or has become untrue in any material respect or that
a change to a statement made in a Registration Statement or Prospectus based on information
furnished to the Company pursuant to Section 6.2(a) must be made so that (A) in the case of
a Registration Statement, it will not contain any untrue statement of a material fact or omit any
material fact required to be stated therein or necessary to make the statements not misleading and
(B) in the case of a Prospectus, it will not contain any untrue statement of a material fact or
omit any material fact required to be stated therein or necessary to make the statements not
misleading in light of the circumstances under which they were made and (ii) provide the Company
with such information as may be required to enable the Company to prepare a post-effective
amendment to any such Registration Statement or a supplement to such Prospectus.

     6.3 Suspension of Disposition.

          (a) Each participating Holder (and, if such Holder is the VEBA Trust, the VEBA Trustee and the
Independent Fiduciary) will be deemed to have agreed that, upon receipt of any notice from the
Company of the occurrence of any event of the kind described in Section 6.1(c)(ii),
6.1(c)(iii), 6.1(c)(iv), 6.1(c)(v) or 6.1(c)(vi), such Holder will
discontinue disposition of Registrable Securities covered by a Registration Statement or Prospectus
until receipt by such Holder of the copies of the supplemented or amended Prospectus contemplated
by Section 6.1(g) or until such Holder has been advised in writing by the Company that the
use of the applicable Prospectus may be resumed and has received copies of any additional or
supplemental filings that are incorporated or deemed to be incorporated by reference in such
Prospectus. In the event that the Company shall give any such notice, the period of time for which
a Demand Registration Statement must remain effective as set forth in Section 2.1(a) will
be extended by the number of days during the time period from and including the date of the giving
of such notice to and including the date when each seller of Registrable Securities covered by such
Demand Registration Statement shall have received (i) the copies of the supplemented or amended
Prospectus contemplated by Section 6.1(h) or (ii) the written advice referred to above.

          (b) Each participating Holder (and, if such Holder is the VEBA Trust, the VEBA Trustee and the
Independent Fiduciary) will be deemed to have agreed that, upon receipt of any notice from the
Company that the Company or any of its subsidiaries is involved in any financing, acquisition,
corporate reorganization or other significant transaction, or any negotiations, discussions or
pending proposals with respect thereto, disclosure of which would be

16

 

required in the Registration Statement and the Board of Directors of the Company has
determined in the good faith exercise of its reasonable business judgment that disclosure would
adversely affect the financing, acquisition, corporate reorganization or other significant
transaction, each participating Holder will discontinue disposition of Registrable Securities
covered by a Registration Statement or Prospectus until the earlier to occur of (i) the receipt by
such Holder of copies of a supplemented or amended Prospectus describing the financing,
acquisition, corporate reorganization or other significant transaction or (ii) the termination of
the transaction; provided, however, that the period during which the offer and sale of Registrable
Securities is discontinued will not exceed 90 days during any 12-month period.

     6.4 Registration Expenses.

          (a) Subject to Sections 2.1(d) and 3.5(c), all fees and expenses incurred by
the Company in complying with Articles II, III and IV and Section
6.1 (collectively, “Registration Expenses”) will be borne by the Company. These fees
and expenses will include without limitation (i) all registration and filing fees (including
without limitation fees and expenses incurred (A) with respect to filings required to be made with
the National Association of Securities Dealers, Inc. and (B) in complying with securities or blue
sky laws (including without limitation reasonable fees and disbursements of counsel for any
underwriters and each participating Holder in connection with blue sky qualifications of the
Registrable Securities and determination of the eligibility of the Registrable Securities for
investment under the laws of such jurisdictions as the managing underwriter or underwriters, if
any, or the participating Holder or Holders may designate)), (ii) printing expenses (including
without limitation the expenses of printing certificates for securities in a form eligible for
deposit with The Depository Trust Company and of printing Prospectuses if the printing of
Prospectuses is requested by the participating Holder or Holders), (iii) fees and disbursements of
counsel for the Company, (iv) reasonable fees and disbursements (not to exceed $50,000) of one
counsel for participating Holders collectively (which counsel will be selected by the VEBA Trust)
for each of a registration pursuant to Article II and a registration pursuant to
Article III, (v) fees and disbursements of all independent certified public accountants
referred to in Section 6.1(h)(ii) (including without limitation the expenses of any special
audit and “comfort” letters required by or incident to such performance), (vi) reasonable fees and
expenses of any “qualified independent underwriter” or other independent appraiser participating in
an offering pursuant to Section 2720(c) of the Conduct Rules of the National Association of
Securities Dealers, Inc., and (vii) fees and expenses of all other Persons retained by the Company.
In addition, the Company will pay its internal expenses (including without limitation all salaries
and expenses of its officers and employees performing legal or accounting duties), the expense of
any annual audit and the fees and expenses incurred in connection with the listing of the
securities to be registered on each national securities exchange, if any, on which similar
securities issued by the Company are then listed or the quotation of such securities on each
association or quotation system, if any, on which similar securities issued by the Company are then
quoted.

          (b) Except as specifically set forth in Section 6.4(a), notwithstanding anything
contained herein to the contrary (i) all costs and fees of counsel and experts retained by a
participating Holder (and, if such Holder is the VEBA Trust, the VEBA Trustee and the Independent
Fiduciary) and (ii) all underwriting fees, discounts, selling commissions and stock

17

 

transfer taxes applicable to the sale of Registrable Securities will be borne by the
applicable Holder.

          (c) Notwithstanding anything contained herein to the contrary, each participating Holder may
have its own separate counsel in connection with the registration of any of its Registrable
Securities, which counsel may participate therein to the full extent provided herein; provided,
however, that all fees and expenses of such separate counsel will be paid for by such participating
Holder.

Article VII. Indemnification

     7.1 Indemnification by the Company. The Company will indemnify and hold harmless, to
the fullest extent permitted by law, each Holder holding Registrable Securities registered pursuant
to this Agreement (and, if the VEBA Trust is a participating Holder, the VEBA Trustee and the
Independent Fiduciary) and their respective officers, directors, trustees, agents and employees,
each Person who controls (within the meaning of Section 15 of the Securities Act or Section 20 of
the Exchange Act) such Holder (and, if such Holder is the VEBA Trust, the VEBA Trustee and the
Independent Fiduciary) and the officers, directors, trustees, agents and employees of any such
controlling Person, from and against all losses, claims, damages, liabilities (or actions in
respect thereof), costs and expenses (including without limitation any legal or other expenses
reasonably incurred by them in connection with investigating or defending any such loss, claim,
damage, liability or action) (collectively, “Losses”) arising out of or based upon (i) any
violation or alleged violation by the Company of the Securities Act, the Exchange Act, any
applicable state securities or blue sky law or any rule or regulation promulgated under the
Securities Act, the Exchange Act or any applicable state securities or blue sky law in connection
with the offer or sale of the Registrable Securities, (ii) any untrue or alleged untrue statement
of a material fact contained or incorporated by reference in any Registration Statement,
Prospectus, preliminary prospectus or any document filed under any state securities or blue sky law
in connection with the offer or sale of the Registrable Securities, or (iii) any omission or
alleged omission to state in any such Registration Statement, Prospectus, preliminary prospectus or
filed document a material fact required to be stated therein or necessary to make the statements
therein not misleading, except insofar as such Losses are based solely upon information furnished
in writing to the Company by or on behalf of such Holder, the VEBA Trustee or the Independent
Fiduciary expressly for use therein; provided, however, that the Company will not be liable to any
Holder (or, if such Holder is the VEBA Trust, the VEBA Trustee or the Independent Fiduciary) to the
extent that any Losses arise out of or are based upon an untrue statement or alleged untrue
statement or omission or alleged omission made in any preliminary prospectus if either (i) (A) such
Holder failed to send or deliver a copy of the Prospectus with or prior to the delivery of written
confirmation of the sale by such Holder of a Registrable Security to the Person asserting the claim
from which such Losses arise and (B) the Prospectus would have completely corrected such untrue
statement or alleged untrue statement or such omission or alleged omission or (ii) (A) the untrue
statement or alleged untrue statement or omission or alleged omission is completely corrected in an
amendment or supplement to the Prospectus previously furnished by or on behalf of the Company, (B)
such Holder was furnished with copies of the Prospectus as so amended or supplemented, and (C) such
Holder thereafter failed to deliver such Prospectus as so amended or

18

 

supplemented prior to or concurrently with the sale of a Registrable Security to the Person
asserting the claim from which such Losses arise.

     7.2 Indemnification by Holders. Each participating Holder (severally and not jointly)
will indemnify and hold harmless, to the fullest extent permitted by law, the Company, its
officers, directors, agents and employees, each Person who controls (within the meaning of Section
15 of the Securities Act or Section 20 of the Exchange Act) the Company and the directors,
officers, agents and employees of any such controlling Person, from and against all Losses, as
incurred, arising out of or based upon (i) any untrue or alleged untrue statement of a material
fact contained or incorporated by reference in any Registration Statement, Prospectus, preliminary
prospectus, or any document filed under any state securities or blue sky law in connection with the
offer or sale of the Registrable Securities or (ii) any omission or alleged omission of a material
fact required to be stated in any such Registration Statement, Prospectus, preliminary prospectus
or filed document or necessary to make the statements therein not misleading, to the extent, but
only to the extent, that such Losses arise from or are based upon an untrue statement or alleged
untrue statement or omission or alleged omission made in reliance upon and in conformity with
information so furnished in writing by or on behalf of such Holder (or, if such Holder is the VEBA
Trust, by the VEBA Trustee and the Independent Fiduciary) to the Company expressly for use in such
Registration Statement, Prospectus, preliminary prospectus or filed document. In no event will the
liability of a Holder hereunder be greater in amount than the dollar amount of the net proceeds
received by such Holder upon the sale of the Registrable Securities giving rise to such
indemnification obligation.

     7.3 Conduct of Indemnification Proceedings. If any Person becomes entitled to
indemnity hereunder (an “Indemnified Party”), such Indemnified Party will give prompt
notice to the party from which indemnity is sought (the “Indemnifying Party”) of any claim
or of the commencement of any action or proceeding with respect to which the Indemnified Party
seeks indemnification or contribution pursuant hereto; provided, however, that the failure to so
notify the Indemnifying Party will not relieve the Indemnifying Party from any obligation or
liability except to the extent that the Indemnifying Party has been prejudiced materially by such
failure. If such an action or proceeding is brought against the Indemnified Party, the
Indemnifying Party will be entitled to participate therein and, to the extent it may elect by
written notice delivered to the Indemnified Party promptly after receiving the notice referred to
in the immediately preceding sentence, to assume the defense thereof with counsel reasonably
satisfactory to the Indemnified Party. Notwithstanding the foregoing, the Indemnified Party will
have the right to employ its own counsel in any such case, but the fees and expenses of that
counsel will be at the expense of the Indemnified Party unless (i) the employment of the counsel
has been authorized in writing by the Indemnifying Party, (ii) the Indemnifying Party has not
employed counsel (reasonably satisfactory to the Indemnified Party) to take charge of such action
or proceeding within a reasonable time after notice of commencement thereof, or (iii) the
Indemnified Party reasonably concludes, based upon the opinion of counsel, that there may be
defenses or actions available to it which are different from or in addition to those available to
the Indemnifying Party which, if the Indemnifying Party and the Indemnified Party were to be
represented by the same counsel, could result in a conflict of interest for such counsel or
materially prejudice the prosecution of defenses or actions available to the Indemnified Party. If
any of the events specified in clause (i), (ii) or (iii) of the immediately preceding sentence are
applicable, then the reasonable fees and expenses of separate counsel for the Indemnified Party
will be borne by the

19

 

Indemnifying Party; provided, however, that in no event will the Indemnifying Party be liable
for the fees and expenses of more than one separate firm (together with appropriate local counsel)
for all Indemnified Parties. If, in any case, the Indemnified Party employs separate counsel, the
Indemnifying Party will not have the right to direct the defense of the action or proceeding on
behalf of the Indemnified Party. All fees and expenses required to be paid to the Indemnified
Party pursuant to this Article VII will be paid periodically during the course of the
investigation or defense, promptly upon delivery to the Indemnified Party of a reasonably itemized
bill therefor in respect of any particular Loss that is incurred. Notwithstanding anything
contained in this Section 7.3 to the contrary, an Indemnifying Party will not be liable for
the settlement of any action or proceeding effected without its prior written consent. An
Indemnifying Party will not, without the consent of the Indemnified Party (which consent will not
be unreasonably withheld), consent to entry of any judgment or enter into any settlement or
otherwise seek to terminate any action or proceeding in which any Indemnified Party is or could be
a party and as to which indemnification or contribution could be sought by such Indemnified Party
under this Article VII, unless such judgment, settlement or other termination provides
solely for the payment of money and includes as an unconditional term thereof the giving by the
claimant or plaintiff to such Indemnified Party of a release, in form and substance reasonably
satisfactory to the Indemnified Party, from all liability in respect of such claim or litigation
for which such Indemnified Party would be entitled to indemnification hereunder.

     7.4 Contribution, etc.

          (a) If the indemnification provided for in this Article VII is held by a court of
competent jurisdiction to be unavailable to an Indemnified Party under Section 7.1 or
7.2 in respect of any Losses or is insufficient to hold the Indemnified Party harmless,
then each applicable Indemnifying Party (severally and not jointly), in lieu of indemnifying the
Indemnified Party, will contribute to the amount paid or payable by the Indemnified Party as a
result of such Losses, in such proportion as is appropriate to reflect the relative fault of the
Indemnifying Party or Indemnifying Parties, on the one hand, and the Indemnified Party, on the
other hand, in connection with the actions, statements or omissions that resulted in such Losses as
well as any other relevant equitable considerations. The relative fault of the Indemnifying Party
or Indemnifying Parties, on the one hand, and the Indemnified Party, on the other hand, will be
determined by reference to, among other things, whether any action in question, including without
limitation any untrue or alleged untrue statement of a material fact or omission or alleged
omission of a material fact, has been taken or made by, or related to information supplied by, the
Indemnifying Party or Indemnifying Parties or the Indemnified Party, and the parties’ relative
intent, knowledge, access to information and opportunity to correct or prevent such action,
statement or omission.

          (b) The parties hereto agree that it would not be just and equitable if contribution pursuant
to this Section 7.4 were determined by pro rata allocation or by any other method of
allocation that does not take into account the equitable considerations referred to in the
immediately preceding paragraph. Notwithstanding anything contained in this Section 7.4 to
the contrary, an Indemnifying Party that is a participating Holder will not be required to
contribute any amount in excess of the amount by which the total price at which the Registrable
Securities were sold by such participating Holder to the public exceeds the amount of any damages
which such participating Holder has otherwise been required to pay by reason of such

20

 

untrue or alleged untrue statement or omission or alleged omission. No Person guilty of
fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) will be
entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation.

     7.5 Survival of Indemnification. The obligations of the Company and the Holders under
this Article VII will survive the completion of any offering of Registrable Securities
pursuant to any Registration Statement or Substitute Registration Statement under this Agreement.

Article VIII. Rule 144

     The Company will file in a timely manner (taking into account any extension available under
Rule 12b-25 of the Exchange Act) all reports required to be filed by it under the Exchange Act and,
to the extent required from time to time to enable the VEBA Trust to sell its Registrable
Securities without registration under the Securities Act within the limitations of the exemptions
provided by Rule 144, will cooperate with the VEBA Trust. Upon the request of the VEBA Trust, the
Company will promptly deliver to the VEBA Trust a written statement as to whether it has complied
with such filing requirements. Notwithstanding the foregoing, nothing in this Article VIII
will require the Company to register any securities, or file any reports, under the Exchange Act if
such registration or filing is not required under the Exchange Act.

Article IX. Certain Other Agreements

     Except as set forth herein, no agreement granting any registration rights to any Person with
respect to any of the Company’s securities is in force and effect as of the date hereof. The
Company will not hereafter enter into any agreement with respect to its securities that is
inconsistent with, or attempts to derogate from, the rights granted to the Holders in this
Agreement, unless such inconsistency or derogation is first waived in writing by the Holders.

Article X. Miscellaneous

     10.1 Notices. All notices, requests, claims, demands and other communications
hereunder will be in writing and will be given or made by delivery in person, by overnight courier,
by facsimile transmission, by electronic transmission or by registered or certified mail (postage
prepaid, return receipt requested) to the respective parties at the following addresses (or at such
other address for a party specified in a notice given in accordance with this Section
10.1):

	 	(a)	 	If to the Company:
	 
	 	 	 	Kaiser Aluminum Corporation

27422 Portola Parkway, Suite 350

Foothill Ranch, California 92610

Facsimile: 949-614-1930

Attention: Corporate Secretary

E-mail: john.donnan@kaiseraluminum.com

21

 

	 	 	 	with a copy to:
	 
	 	 	 	Jones Day

2727 N. Harwood Street

Dallas, Texas 75223

Facsimile: 214-969-5100

Attention: Troy B. Lewis, Esq.

E-mail: tblewis@jonesday.com
	 
	 	(b)	 	If to the VEBA Trust:
	 
	 	 	 	National City Bank

Taft-Hartley Services

20 Stanwix Street

Pittsburgh, Pennsylvania

Facsimile: 412-644-6153

Attention: Gary R. Chontos

E-mail: gary.chontos@allegiantgroup.com
	 
	 	 	 	with a copy to:
	 
	 	 	 	National City Bank

1900 East Ninth Street, Loc.01-2174

Cleveland, OH 44114

Attn: John W. Boyd

E-mail: john.boyd@nationalcity.com
	 
	 	 	 	with a copy to:
	 
	 	 	 	Allegiant Asset Management Company

200 Public Square, 5th Floor

Cleveland, OH 44114

Attn: Robert V. Kline

E-mail: robert.kline@allegiantgroup.com
	 
	 	 	 	with a copy to:
	 
	 	 	 	Bredhoff & Kaiser, P.L.L.C.

805 Fifteenth Street, N.W.

Washington, D.C. 20005

Facsimile: 202-842-1888

Attention: Douglas L. Greenfield

E-mail: dgreenfield@bredhoff.com
	 
	 	 	 	-and- 

22

 

	 	 	 	the Independent Fiduciary
	 
	 	(c)	 	If to the Independent Fiduciary:
	 
	 	 	 	Independent Fiduciary Services, Inc.

805 15th Street, N.W., Suite 1120

Washington, D.C. 20005

Facsimile: 202-898-1819

Attention: Samuel W. Halpern

E-mail: shalpern@independentfiduciary.com
	 
	 	 	 	with a copy to:
	 
	 	 	 	Kilpatrick Stockton LLP

607 14th Street, N.W., Suite 900

Washington, D.C. 20005

Facsimile: 202-585-0024

Attention: Steven J. Sacher

E-mail: ssacher@kilpatrickstockton.com
	 
	 	(d)	 	If to a VEBA Trust Transferee, the address specified for such
VEBA Trust Transferee on Schedule I hereto.

All such notices and communications sent to any party to this Agreement at the address(es) or
facsimile number(s) provided pursuant to this Section 10.1 will be deemed to have been
delivered or given upon receipt, if delivered personally, by electronic transmission or by
overnight courier; when receipt is acknowledged, if sent by facsimile transmission; and three
Business Days after being mailed, registered or certified mail, return receipt requested, with
postage prepaid, if mailed.

     10.2 Confidentiality. Each Holder, the VEBA Trustee and the Independent Fiduciary
will, and will cause their respective officers, directors, employees, legal counsel, accountants,
financial advisors and other representatives to, hold in confidence any material nonpublic
information received by them pursuant to this Agreement, including without limitation any material
nonpublic information included in any Registration Statement or Prospectus proposed to be filed
with the SEC provided pursuant to Section 6.1(a) and any material nonpublic information
provided or made available pursuant to Section 6.1(i). This Section 10.2 will not
apply to any information which (a) is or becomes generally available to the public (other than by
reason of a breach of this Agreement), (b) was already in the possession of such Holder, the VEBA
Trustee or the Independent Fiduciary from a non-confidential source prior to its disclosure by the
Company, and (c) is or becomes available to the Holder, the VEBA Trustee or the Independent
Fiduciary on a non-confidential basis from a source other than the Company; provided, however, that
such source is not known by the Holder, the VEBA Trustee or the Independent Fiduciary, as the case
may be, to be bound by confidentiality obligations.

23

 

     10.3 Assignment. None of the parties to this Agreement will assign or delegate any of
their respective rights or obligations under this Agreement without the prior written consent of
each of the other parties hereto. The parties intend that the terms of this Agreement apply to and
will be binding upon any successor to the Company, the VEBA Trustee, the Independent Fiduciary or a
VEBA Trust Transferee, as applicable, and will use their commercially reasonable efforts to cause
any such successor to agree in writing to become a party to this Agreement.

     10.4 No Third-Party Beneficiaries. Except as expressly set forth herein, this
Agreement will be binding upon and inure solely to the benefit of the parties hereto and their
respective successors and permitted assigns and nothing herein, express or implied, is intended to
or will confer upon any other Person any legal or equitable right, benefit or remedy of any nature
whatsoever under or by reason of this Agreement.

     10.5 Entire Agreement. This Agreement constitutes the entire agreement of the parties
hereto with respect to the subject matter hereof and supersedes all prior agreements and
undertakings, both written and oral, among the parties with respect to the subject matter hereof.

     10.6 Amendment and Waiver. This Agreement may not be amended or modified or any
provision hereof waived except by an instrument in writing signed by all of the parties to this
Agreement. Notwithstanding the foregoing, an amendment, modification or waiver that does not
adversely affect all of the parties to this Agreement may be executed by only the adversely
affected party or parties.

     10.7 Counterparts; Facsimile Signatures. This Agreement may be executed by facsimile
signature and in any number of counterparts, each such counterpart to be deemed an original and all
such counterparts, taken together, to constitute one instrument.

     10.8 Headings. The descriptive headings contained in this Agreement are for
convenience of reference only and will not affect in any way the meaning or interpretation of this
Agreement.

     10.9 Severability. If any term or other provision of this Agreement is held invalid,
illegal or unenforceable in any respect, such invalidity, illegality or unenforceability will not
affect the other terms and provisions of this Agreement, all of which will nevertheless remain in
full force and effect. Upon a determination that any term or other provision is invalid, illegal
or unenforceable, the parties hereto will endeavor in good faith to replace the invalid, illegal or
unenforceable provisions with valid, legal and enforceable provisions the effect of which comes as
close as possible to that of the invalid, illegal or unenforceable provisions.

     10.10 Governing Law. This Agreement will be governed by, and construed in accordance
with, the laws of the State of Delaware, without giving effect to the principles of conflict of
laws thereof.

     10.11 Specific Performance. The parties hereto agree that irreparable damage would
occur in the event any provision of this Agreement was not performed in accordance with the terms
hereof and that the parties will be entitled to specify performance of the terms hereof, in
addition to any other remedy at law or equity.

24

 

     10.12 Further Assurances. The parties hereto agree to act in accordance herewith, not
take any action that is designed to avoid the intention hereof and take such further actions as are
necessary to ensure that the terms of this Agreement are carried out and observed.

     10.13 Stock Transfer Restrictions. The VEBA Trust acknowledges that all resales by it
of Registrable Securities, whether pursuant to a Registration Statement hereunder or otherwise, are
subject to the terms of the Stock Transfer Restriction Agreement and the Certificate of
Incorporation.

[REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]

25

 

     IN WITNESS WHEREOF, each of the parties has executed this Agreement as of the date first
written above.

	 	 	 	 	 	 	 
	 	 	KAISER ALUMINUM CORPORATION
	 
	 

	 	By:
	 	/s/ John M. Donnan
 

	 	 
	 

	 	 	 	John M. Donnan, Vice President, Secretary	 	 
	 

	 	 	 	& General Counsel	 	 
	 
	 	 	 	 	 	 
	 	 	NATIONAL CITY BANK,
	 	 	solely in its capacity as VEBA Trustee under the VEBA
Trust and not individually
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Mark O. Minar
 

	 	 
	 

	 	 	 	Name: Mark O. Minar	 	 
	 

	 	 	 	Title: Vice President	 	 
	 
	 	 	 	 	 	 
	 	 	CARGILL FINANCIAL SERVICES INTERNATIONAL, INC.
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Jerrey D. Leu

	 	 
	 

	 	 	 	Name: Jerrey D. Leu	 	 
	 

	 	 	 	Title: Vice President	 	 
	 
	 	 	 	 	 	 
	 	 	CITIGROUP FINANCIAL PRODUCTS, INC.
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Jeffrey S. Jacob

	 	 
	 

	 	 	 	Name: Jeffrey S. Jacob	 	 
	 

	 	 	 	Title: Managing Director	 	 

 

 

	 	 	 	 	 	 	 	 	 
	 	 	KING STREET ACQUISITION COMPANY, L.L.C.	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	KING STREET CAPITAL MANAGEMENT,
L.L.C.	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By: /s/ Bruce S. Darringer

	 	 	 	 
	 

	 	 	 	        Name: Bruce S. Darringer	 	 	 	 
	 

	 	 	 	        Title: Chief
Operating Officer	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	MASON CAPITAL MANAGEMENT, LLC	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By: 	 	/s/ Michael Martino	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name: Michael Martino	 	 	 	 
	 

	 	 	 	Title: Managing Member	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	MORGAN STANLEY & CO. INCORPORATED	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	/s/ Dan M. Allen	 	 
	 	 	 	 	 	 	 
	 	 	 	 	Name: Dan M. Allen	 	 
	 	 	 	 	Title: Authorized Signatory	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	ORE HILL HUB FUND LTD.	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	ORE HILL PARTNERS LLC	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By: /s/ Claude A. Baum

	 	 	 	 
	 

	 	 	 	        Name: Claude A. Baum, Esq.	 	 	 	 
	 

	 	 	 	        Title: General
Counsel
                  Ore Hill Partners LLC	 	 	 	 

 

 

ASSENT AND ACKNOWLEDGEMENT

The undersigned, by assenting to and acknowledging this Agreement, agrees not to direct or
otherwise cause the VEBA Trustee to take any action in violation of the terms of this Agreement:

INDEPENDENT FIDUCIARY SERVICES, INC.,

in its capacity as Independent Fiduciary of the Retiree Plan in respect of Discretionary Management
of New Common Stock held by the VEBA Trust

	 	 	 	 	 
	By:

	 	/s/ Samuel W. Halpern	 	 
	 

	 	 

Samuel W. Halpern, President
	 	 

 

 

SCHEDULE I

VEBA TRUST TRANSFEREES

	 	 	 	 	 	 	 
	 	 	 	 	Number of VEBA Trust
	 	 	 	 	Transferee Shares Received
	NAME	 	ADDRESS	 	on Effective Date
	Cargill Financial Services
International, Inc.

	 	12700 Whitewater Dr.

Minnetonka, MN 55305

Attention: Eric Olson

Facsimile No.: 952-984-3728
	 	 	300,000	 
	 
	 	 	 	 	 	 
	Citigroup Financial Products
Inc.

	 	390 Greenwich Ave.

7th Floor

New York, NY 10013

Attention: Brian Lanktree

Facsimile No.: 212-723-8036
	 	 	200,000	 
	 
	 	 	 	 	 	 
	King Street Acquisition
Company, L.L.C.

	 	65 East 55th Street

30th Floor

New York, NY 10022

Attention: Josh Feldman/

                    Mark Weinberger

Facsimile No.: 212-812-3138
	 	 	200,000	 
	 
	 	 	 	 	 	 
	Mason Capital Management,

LLC

	 	110 East 59th Street

30th Floor

New York, NY 10022

Attention: Stewart Tabin

Facsimile No.: 212-355-5294
	 	 	980,000	 
	 
	 	 	 	 	 	 
	Morgan Stanley & Co. Inc.

	 	1585 Broadway

New York, NY

Attention: Ian Sandler

Facsimile No.: 212-507-3603
	 	 	250,000	 
	 
	 	 	 	 	 	 
	Ore Hill Hub Fund Ltd.

	 	650 Fifth Avenue

9th Floor

New York, NY 10019

Attention: Claude Baum

Facsimile No.: 212-389-2353
	 	 	400,000

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