Document:

exv10w10

 

Exhibit 10.10

FORM OF DIRECTOR AND OFFICER

INDEMNIFICATION AGREEMENT

     This Director and Officer Indemnification Agreement, dated as of July 6, 2006 (this
“Agreement”), is made by and between Kaiser Aluminum Corporation, a Delaware corporation (the
“Company”), and [                                        ] (“Indemnitee”).

RECITALS

     A. Section 141 of the General Corporation Law of the State of Delaware (the “DGCL”) provides
that the business and affairs of a corporation shall be managed by or under the direction of its
board of directors.

     B. Pursuant to Sections 141 and 142 of the DGCL, significant authority with respect to the
management of the Company has been delegated to the officers of the Company.

     C. By virtue of the managerial prerogatives vested in the directors and officers of a Delaware
corporation, directors and officers act as fiduciaries of the corporation and its stockholders.

     D. Thus, it is critically important to the Company and its stockholders that the Company be
able to attract and retain the most capable persons reasonably available to serve as directors and
officers of the Company.

     E. In recognition of the need for corporations to be able to induce capable and responsible
persons to accept positions in corporate management, Delaware law authorizes (and in some instances
requires) corporations to indemnify their directors and officers, and further authorizes
corporations to purchase and maintain insurance for the benefit of their directors and officers.

     F. The Delaware courts have recognized that indemnification by a corporation serves the dual
policies of (1) allowing corporate officials to resist unjustified lawsuits, secure in the
knowledge that, if vindicated, the corporation will bear the expense of litigation and (2)
encouraging capable women and men to serve as corporate directors and officers, secure in the
knowledge that the corporation will absorb the costs of defending their honesty and integrity.

     G. The indemnification of directors and officers by a corporation serves as an important
supplement to directors’ and officers’ liability insurance and as a replacement for such insurance
in circumstances where such insurance is unavailable.

     H. The number of lawsuits challenging the judgment and actions of directors and officers of
Delaware corporations, the costs of defending those lawsuits and the threat to directors’ and
officers’ personal assets have all materially increased over the past several years, chilling the
willingness of capable women and men to undertake the responsibilities imposed on corporate
directors and officers.

     I. Recent federal legislation and rules adopted by the Securities and Exchange Commission and
the national securities exchanges and the National Association of Securities

 

 

Dealers, Inc. have imposed additional disclosure and corporate governance obligations on
directors and officers of public companies and have exposed such directors and officers to new and
substantially broadened civil liabilities.

     J. These legislative and regulatory initiatives have also exposed directors and officers of
public companies to a significantly greater risk of criminal proceedings, with attendant defense
costs and potential criminal fines and penalties.

     K. Under Delaware law, a director’s and officer’s right to be reimbursed for the costs of
defense of criminal actions, whether such claims are asserted under state or federal law, does not
depend upon the merits of the claims asserted against the director or officer and is separate and
distinct from any right to indemnification the director or officer may be able to establish, and
indemnification of the director or officer against criminal fines and penalties is permitted if the
director or officer satisfies the applicable standard of conduct.

     L. Indemnitee is a director and officer of the Company and does not regard the protection
afforded to him/her by Delaware law and the Company’s certificate of incorporation and bylaws
(collectively, the “Constituent Documents”) as adequate, and his/her willingness to serve in such
capacity is predicated, in substantial part, upon (1) the Company’s willingness to provide
protection to him/her pursuant to express contract rights providing for the Company to indemnify
him/her in accordance with the principles reflected above, to the fullest extent permitted by
Delaware law, and (2) the other undertakings set forth in this Agreement.

     M. Therefore, in recognition of the need to provide Indemnitee with substantial protection
against personal liability, in order to procure Indemnitee’s continued service as a director and
officer of the Company and to enhance Indemnitee’s ability to serve the Company in an effective
manner, and in order to provide such protection pursuant to express contract rights (intended to be
enforceable irrespective of, among other things, any amendment to the Constituent Documents, any
change in the composition of the Company’s Board of Directors (the “Board”) or any
change-in-control or business combination transaction relating to the Company), the Company wishes
to provide in this Agreement for (1) the indemnification of and the advancement of Expenses (as
defined in Section 1(e)) to Indemnitee as set forth in this Agreement as a supplement to, and in
furtherance of, the indemnification provided by the Constituent Documents or resolutions of the
Board and (2) the continued coverage of Indemnitee under the Company’s directors’ and officers’
liability insurance policies.

     N. In light of the factors referred to in the preceding recitals, it is the Company’s
intention and desire that the provisions of this Agreement be construed liberally, subject to their
express terms, to maximize the protections to be provided to Indemnitee hereunder.

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AGREEMENT

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

     1. Certain Definitions. In addition to terms defined elsewhere herein, the following terms
have the following meanings when used in this Agreement with initial capital letters:

          (a) “Change in Control” means the occurrence on or after the date of this Agreement of any of
the following events:

               (i) the acquisition by any individual, entity or group (within the meaning of Section 13(d)(3)
or 14(d)(2) of the Exchange Act) (a “Person”) of beneficial ownership (within the meaning of Rule
13d-3 promulgated under the Exchange Act) of 35% or more of the combined voting power of the
then-outstanding Voting Stock of the Company; provided, however, that:

                    (A) for purposes of this Section 1(a)(i), the following acquisitions shall not constitute a
Change in Control: (1) any acquisition of Voting Stock of the Company directly from the Company (x)
pursuant to the Second Amended Joint Plan of Reorganization of Kaiser Aluminum Corporation, Kaiser
Aluminum & Chemical Corporation and Certain of Their Debtor Affiliates, as modified, filed pursuant
to section 1121(a) of title 11 of the United States 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”), or (y) that is approved by a majority of the
Incumbent Directors, (2) any acquisition of Voting Stock of the Company by the Company or any
Subsidiary, (3) any acquisition of Voting Stock of the Company by any employee benefit plan (or
related trust) sponsored or maintained by the Company or any Subsidiary (other than any voluntary
employee beneficiary association established in connection with the Plan), and (4) any acquisition
of Voting Stock of the Company by any Person pursuant to a Business Combination that complies with
clauses (A), (B) and (C) of Section 1(a)(iii) below;

                    (B) if any Person acquires beneficial ownership of 35% or more of combined voting power of the
then-outstanding Voting Stock of the Company as a result of a transaction described in clause
(A)(1) of Section 1(a)(i) and such Person thereafter becomes the beneficial owner of any additional
shares of Voting Stock of the Company representing 1% or more of the then-outstanding Voting Stock
of the Company, other than in an acquisition directly from the Company pursuant to the Plan, in an
acquisition directly from the Company in a transaction that is approved by a majority of the
Incumbent Directors or other than as a result of a stock dividend, stock split or similar
transaction effected by the Company in which all holders of Voting Stock are treated equally, such
subsequent acquisition shall be deemed to constitute a Change in Control;

                    (C) a Change in Control will not be deemed to have occurred if a Person acquires beneficial
ownership of 35% or more of the Voting Stock of the Company as a result of a reduction in the
number of shares of Voting Stock of the Company outstanding unless and until such Person thereafter
becomes the beneficial owner of any additional shares of Voting

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Stock of the Company representing 1% or more of the then-outstanding Voting Stock of the
Company, other than in an acquisition directly from the Company pursuant to the Plan, in an
acquisition directly from the Company in a transaction that is approved by a majority of the
Incumbent Directors or other than as a result of a stock dividend, stock split or similar
transaction effected by the Company in which all holders of Voting Stock are treated equally; and

                    (D) if at least a majority of the Incumbent Directors determine in good faith that a Person
has acquired beneficial ownership of 35% or more of the Voting Stock of the Company inadvertently,
and such Person divests as promptly as practicable a sufficient number of shares so that such
Person beneficially owns less than 35% of the Voting Stock of the Company, then no Change in
Control shall have occurred as a result of such Person’s acquisition; or

               (ii) a majority of the Directors are not Incumbent Directors; or

               (iii) the consummation of a reorganization, merger or consolidation, or sale or other
disposition of all or substantially all of the assets of the Company or the acquisition of assets
of another corporation or other entity, or other transaction (each, a “Business Combination”),
unless, in each case, immediately following such Business Combination (A) all or substantially all
of the individuals and entities who were the beneficial owners of Voting Stock of the Company
immediately prior to such Business Combination beneficially own, directly or indirectly, more than
60% of the combined voting power of the then outstanding shares of Voting Stock of the entity
resulting from such Business Combination (including without limitation an entity which as a result
of such transaction owns the Company or all or substantially all of the Company’s assets either
directly or through one or more subsidiaries), (B) no Person (other than the Company, such entity
resulting from such Business Combination, any employee benefit plan (or related trust) sponsored or
maintained by the Company, any Subsidiary or such entity resulting from such Business Combination
(other than any voluntary employee beneficiary association established in connection with the Plan)
or any Person that immediately prior to such Business Combination owns, directly or indirectly, 35%
or more of the Voting Stock of the Company so long as such Person does not at such time own,
directly or indirectly, more than 1% of the securities of the other corporation or other entity
involved in such Business Combination to be converted into or exchanged for shares of Voting Stock
of the entity resulting from such Business Combination pursuant to such Business Combination))
beneficially owns, directly or indirectly, 35% or more of the combined voting power of the then
outstanding shares of Voting Stock of the entity resulting from such Business Combination, and (C)
at least a majority of the members of the Board of Directors of the entity resulting from such
Business Combination were Incumbent Directors at the time of the execution of the initial agreement
or of the action of the Board providing for such Business Combination; or

               (iv) approval by the stockholders of the Company of a complete liquidation or dissolution of
the Company, except pursuant to a Business Combination that complies with clauses (A), (B) and (C)
of Section 1(a)(iii).

               (v) For purposes of this Section 1(a) and as used elsewhere in this Agreement, the following
terms shall have the following meanings:

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                    (A) “Exchange Act” means the Securities Exchange Act of 1934, as amended.

                    (B) “Incumbent Directors” means the individuals who, as of the date hereof, are Directors of
the Company and any individual becoming a Director subsequent to the date hereof whose election,
nomination for election by the Company’s stockholders, or appointment was approved by a vote of at
least two-thirds of the then Incumbent Directors (either by a specific vote or by approval of the
proxy statement of the Company in which such person is named as a nominee for director without
objection to such nomination); provided, however, that an individual shall not be an Incumbent
Director if such individual’s election or appointment to the Board occurs as a result of an actual
or threatened election contest (as described in Rule 14a-12(c) of the Exchange Act) with respect to
the election or removal of Directors or other actual or threatened solicitation of proxies or
consents by or on behalf of a Person other than the Board.

                    (C) “Subsidiary” means an entity in which the Company directly or indirectly beneficially owns
50% or more of the outstanding Voting Stock.

                    (D) “Voting Stock” means securities entitled to vote generally in the election of directors
(or similar governing bodies).

          (b) “Claim” means (i) any threatened, asserted, pending or completed claim, demand, action,
suit or proceeding, whether civil, criminal, administrative, arbitrative, investigative or other,
whether made pursuant to federal, state or other law and whether or not Indemnitee is a party
thereto; (ii) any threatened, pending or completed inquiry or investigation, whether formal or
informal, whether made, instituted or conducted by the Company or any other person, including
without limitation any federal, state or other governmental entity, and whether or not Indemnitee
is the subject of such inquiry or investigation, that Indemnitee determines might lead to the
institution of any such claim, demand, action, suit or proceeding; or (iii) any threatened,
asserted, pending or completed appeal in connection with any such claim, demand, action, suit or
proceeding.

          (c) “Controlled Affiliate” means any corporation, limited liability company, partnership,
joint venture, trust or other entity or enterprise, whether or not for profit, that is directly or
indirectly controlled by the Company. For purposes of this definition, “control” means the
possession, directly or indirectly, of the power to direct or cause the direction of the management
or policies of an entity or enterprise, whether through the ownership of voting securities, through
other voting rights, by contract or otherwise; provided that direct or indirect beneficial
ownership of capital stock or other interests in an entity or enterprise entitling the holder to
cast 10% or more of the total number of votes generally entitled to be cast in the election of
directors (or persons performing comparable functions) of such entity or enterprise shall be deemed
to constitute control for purposes of this definition.

          (d) “Disinterested Director” means a director of the Company who is not and was not a party to
the Claim in respect of which indemnification is sought by Indemnitee.

          (e) “Expenses” means attorneys’ and experts’ fees and expenses, including without limitation
retainers, and all other costs and expenses paid or payable in connection with investigating,
defending, being a witness in or participating in (including on appeal), or preparing

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to investigate, defend, be a witness in or participate in (including on appeal), any Claim,
including without limitation court costs, transcript costs, witness fees, travel expenses,
duplicating costs, printing and binding costs, telephone charges, postage, delivery service fees
and the premium, security for and other costs relating to any costs bond, supersedeas bond or other
appeal bond or its equivalent.

          (f) “Indemnifiable Claim” means any Claim based upon, arising out of or resulting from (i) any
actual, alleged or suspected act or failure to act by Indemnitee in his or her capacity as a
director, officer, employee or agent of the Company or as a director, officer, employee, member,
manager, trustee or agent of any other corporation, limited liability company, partnership, joint
venture, trust or other entity or enterprise, whether or not for profit, as to which Indemnitee is
or was serving at the request of the Company as a director, officer, employee, member, manager,
trustee or agent, (ii) any actual, alleged or suspected act or failure to act by Indemnitee in
respect of any business, transaction, communication, filing, disclosure or other activity of the
Company or any other entity or enterprise referred to in clause (i) of this sentence, or (iii)
Indemnitee’s status as a current or former director, officer, employee or agent of the Company or
as a current or former director, officer, employee, member, manager, trustee or agent of the
Company or any other entity or enterprise referred to in clause (i) of this sentence or any actual,
alleged or suspected act or failure to act by Indemnitee in connection with any obligation or
restriction imposed upon Indemnitee by reason of such status. In addition to any service at the
actual request of the Company, for purposes of this Agreement, Indemnitee shall be deemed to be
serving or to have served at the request of the Company as a director, officer, employee, member,
manager, trustee or agent of another entity or enterprise if Indemnitee is or was serving as a
director, officer, employee, member, manager, trustee or agent of such entity or enterprise and (i)
such entity or enterprise is or at the time of such service was a Controlled Affiliate, (ii) such
entity or enterprise is or at the time of such service was an employee benefit plan (or related
trust) sponsored or maintained by the Company or a Controlled Affiliate (including any voluntary
employee beneficiary association established in connection with the Plan), or (iii) the Company or
a Controlled Affiliate directly or indirectly caused or authorized Indemnitee to be nominated,
elected, appointed, designated, employed, engaged or selected to serve in such capacity.

          (g) “Indemnifiable Losses” means any and all Losses relating to, arising out of or resulting
from any Indemnifiable Claim.

          (h) “Independent Counsel” means a law firm, or a member of a law firm, that is experienced in
matters of corporation law and neither presently is, nor in the past five years has been, retained
to represent: (i) the Company (or any Subsidiary) or Indemnitee in any matter material to either
such party (other than with respect to matters concerning the Indemnitee under this Agreement, or
of other indemnitees under similar indemnification agreements), or (ii) any other named (or, as to
a threatened matter, reasonably likely to be named) party to the Indemnifiable Claim giving rise to
a claim for indemnification hereunder. Notwithstanding the foregoing, the term “Independent
Counsel” shall not include any person who, under the applicable standards of professional conduct
then prevailing, would have a conflict of interest in representing either the Company or Indemnitee
in an action to determine Indemnitee’s rights under this Agreement.

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          (i) “Losses” means any and all Expenses, damages, losses, liabilities, judgments, fines,
taxes, penalties (whether civil, criminal or other) and amounts paid in settlement, including
without limitation all interest, assessments and other charges paid or payable in connection with
or in respect of any of the foregoing.

     2. Indemnification Obligation. Subject to Section 7, the Company shall indemnify, defend and
hold harmless Indemnitee, to the fullest extent permitted or required by the laws of the State of
Delaware in effect on the date hereof or as such laws may from time to time hereafter be amended to
increase the scope of such permitted indemnification, against any and all Indemnifiable Claims and
Indemnifiable Losses; provided, however, that, except as provided in Sections 4 and 20, Indemnitee
shall not be entitled to indemnification pursuant to this Agreement in connection with any Claim
initiated by Indemnitee against the Company or any director or officer of the Company unless the
Company has joined in or consented to the initiation of such Claim.

     3. Advancement of Expenses. Indemnitee shall have the right to advancement by the Company
prior to the final disposition of any Indemnifiable Claim of any and all Expenses relating to,
arising out of or resulting from any Indemnifiable Claim paid or incurred by Indemnitee or which
Indemnitee determines are reasonably likely to be paid or incurred by Indemnitee. Indemnitee’s
right to such advancement is not subject to the satisfaction of any standard of conduct. Without
limiting the generality or effect of the foregoing, within five business days after any request by
Indemnitee (which request may be made at any time and from time to time as Indemnitee determines),
the Company shall, in accordance with such request (but without duplication), (a) pay such Expenses
on behalf of Indemnitee, (b) advance to Indemnitee funds in an amount sufficient to pay such
Expenses, or (c) reimburse Indemnitee for such Expenses. Indemnitee hereby undertakes to repay,
without interest, any amounts actually paid, advanced or reimbursed by the Company in respect of
Expenses relating to, arising out of or resulting from any Indemnifiable Claim in respect of which
it shall have been determined, following the final disposition of such Indemnifiable Claim and in
accordance with Section 7, that Indemnitee is not entitled to indemnification hereunder.
Indemnitee shall not be required to execute and deliver to the Company any further undertaking in
connection with any such payment, advancement or reimbursement. The Company acknowledges that
Indemnitee’s undertaking set forth above shall not be secured and hereby accepts such undertaking
without reference to Indemnitee’s ability to repay the Expenses.

     4. Indemnification for Additional Expenses. Without limiting the generality or effect of the
foregoing, the Company shall indemnify and hold harmless Indemnitee against and, if requested by
Indemnitee, shall reimburse Indemnitee for, or advance to Indemnitee, within five business days of
such request, any and all Expenses paid or incurred by Indemnitee or which Indemnitee determines
are reasonably likely to be paid or incurred by Indemnitee in connection with any Claim made,
instituted or conducted by Indemnitee for (a) indemnification or reimbursement or advance payment
of Expenses by the Company under any provision of this Agreement, or under any other agreement or
provision of the Constituent Documents now or hereafter in effect relating to Indemnifiable Claims,
and/or (b) recovery under any directors’ and officers’ liability insurance policies maintained by
the Company, regardless in each case of whether Indemnitee ultimately is determined to be entitled
to such indemnification, reimbursement, advance or insurance recovery, as the case may be;
provided, however, that

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Indemnitee shall return, without interest, any such advance of Expenses (or portion thereof)
which remains unspent at the final disposition of the Claim to which the advance related.

     5. Partial Indemnity. If Indemnitee is entitled under any provision of this Agreement to
indemnification by the Company for some or a portion of any Indemnifiable Loss, but not for all of
the total amount thereof, the Company shall nevertheless indemnify Indemnitee for the portion
thereof to which Indemnitee is entitled.

     6. Procedure for Notification. To obtain indemnification under this Agreement in respect of
an Indemnifiable Claim or Indemnifiable Loss, Indemnitee shall submit to the Company a written
request therefor, including a brief description (based upon information then available to
Indemnitee) of such Indemnifiable Claim or Indemnifiable Loss. If, at the time of the receipt of
such request, the Company has directors’ and officers’ liability insurance in effect under which
coverage for such Indemnifiable Claim or Indemnifiable Loss is potentially available, the Company
shall give prompt written notice of such Indemnifiable Claim or Indemnifiable Loss to the
applicable insurers in accordance with the procedures set forth in the applicable policies. The
Company shall provide to Indemnitee a copy of such notice delivered to the applicable insurers, and
copies of all subsequent correspondence between the Company and such insurers regarding the
Indemnifiable Claim or Indemnifiable Loss, in each case substantially concurrently with the
delivery or receipt thereof by the Company. The failure by Indemnitee to timely notify the Company
of any Indemnifiable Claim or Indemnifiable Loss shall not relieve the Company from any liability
hereunder unless, and only to the extent that, the Company did not otherwise learn of such
Indemnifiable Claim or Indemnifiable Loss and such failure results in forfeiture by the Company of
substantial defenses, rights or insurance coverage.

     7. Determination of Right to Indemnification.

          (a) To the extent that Indemnitee shall have been successful on the merits or otherwise in
defense of any Indemnifiable Claim or any portion thereof or in defense of any issue or matter
therein, including without limitation dismissal without prejudice, Indemnitee shall be indemnified
against all Indemnifiable Losses relating to, arising out of or resulting from such Indemnifiable
Claim in accordance with Section 2 and no Standard of Conduct Determination (as defined in Section
7(b)) shall be required.

          (b) To the extent that the provisions of Section 7(a) are inapplicable to an Indemnifiable
Claim that shall have been finally disposed of, any determination of whether Indemnitee has
satisfied any applicable standard of conduct under Delaware law that is a legally required
condition precedent to indemnification of Indemnitee hereunder against Indemnifiable Losses
relating to, arising out of or resulting from such Indemnifiable Claim (a “Standard of Conduct
Determination”) shall be made as follows: (i) if a Change in Control shall not have occurred, or
if a Change in Control shall have occurred but Indemnitee shall have requested that the Standard of
Conduct Determination be made pursuant to this clause (i), (A) by a majority vote of the
Disinterested Directors, even if less than a quorum of the Board, (B) if such Disinterested
Directors so direct, by a majority vote of a committee of Disinterested Directors designated by a
majority vote of all Disinterested Directors, or (C) if there are no such Disinterested Directors,
by Independent Counsel in a written opinion addressed to the Board, a copy of which shall be
delivered to Indemnitee; and (ii) if a Change in Control shall have occurred and Indemnitee shall
not have requested that the Standard of Conduct Determination be

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made pursuant to clause (i), by Independent Counsel in a written opinion addressed to the
Board, a copy of which shall be delivered to Indemnitee. Indemnitee will cooperate with the person
or persons making such Standard of Conduct Determination, including without limitation providing to
such person or persons, upon reasonable advance request, any documentation or information which is
not privileged or otherwise protected from disclosure and which is reasonably available to
Indemnitee and reasonably necessary to such determination. The Company shall indemnify and hold
harmless Indemnitee against and, if requested by Indemnitee, shall reimburse Indemnitee for, or
advance to Indemnitee, within five business days of such request, any and all costs and expenses
(including without limitation attorneys’ and experts’ fees and expenses) incurred by Indemnitee in
so cooperating with the person or persons making such Standard of Conduct Determination.

          (c) The Company shall use its reasonable best efforts to cause any Standard of Conduct
Determination required under Section 7(b) to be made as promptly as practicable. If (i) the person
or persons empowered or selected under Section 7 to make the Standard of Conduct Determination
shall not have made a determination within 30 days after the later of (A) receipt by the Company of
written notice from Indemnitee advising the Company of the final disposition of the applicable
Indemnifiable Claim (the date of such receipt being the “Notification Date”) and (B) the selection
of an Independent Counsel, if such determination is to be made by Independent Counsel, that is
permitted under the provisions of Section 7(e) to make such determination and (ii) Indemnitee shall
have fulfilled his/her obligations set forth in the second sentence of Section 7(b), then
Indemnitee shall be deemed to have satisfied the applicable standard of conduct; provided that such
30-day period may be extended for a reasonable time, not to exceed an additional 30 days, if the
person or persons making such determination in good faith requires such additional time for the
obtaining or evaluation or documentation and/or information relating thereto.

          (d) If (i) Indemnitee shall be entitled to indemnification hereunder against any Indemnifiable
Losses pursuant to Section 7(a), (ii) no determination of whether Indemnitee has satisfied any
applicable standard of conduct under Delaware law is a legally required condition precedent to
indemnification of Indemnitee hereunder against any Indemnifiable Losses, or (iii) Indemnitee has
been determined or deemed pursuant to Section 7(b) or (c) to have satisfied any applicable standard
of conduct under Delaware law which is a legally required condition precedent to indemnification of
Indemnitee hereunder against any Indemnifiable Losses, then the Company shall pay to Indemnitee,
within five business days after the later of (x) the Notification Date in respect of the
Indemnifiable Claim or portion thereof to which such Indemnifiable Losses are related, out of which
such Indemnifiable Losses arose or from which such Indemnifiable Losses resulted and (y) the
earliest date on which the applicable criterion specified in clause (i), (ii) or (iii) above shall
have been satisfied, an amount equal to the amount of such Indemnifiable Losses.

          (e) If a Standard of Conduct Determination is to be made by Independent Counsel pursuant to
Section 7(b), the Independent Counsel shall be selected by Indemnitee, and Indemnitee shall give
written notice to the Company advising it of the identity of the Independent Counsel so selected.
The Company may, within five business days after receiving written notice of selection from the
other, deliver to Indemnitee a written objection to such selection; provided, however, that such
objection may be asserted only on the ground that the Independent Counsel so selected does not
satisfy the criteria set forth in the definition of

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“Independent Counsel” in Section 1(h), and the objection shall set forth with particularity
the factual basis of such assertion. Absent a proper and timely objection, the person or firm so
selected shall act as Independent Counsel. If such written objection is properly and timely made
and substantiated, (i) the Independent Counsel so selected may not serve as Independent Counsel
unless and until such objection is withdrawn or a court has determined that such objection is
without merit and (ii) Indemnitee may, at his or her option, select an alternative Independent
Counsel and give written notice to the Company advising the Company of the identity of the
alternative Independent Counsel so selected, in which case the provisions of the immediately
preceding sentence and clause (i) of this sentence shall apply to such subsequent selection and
notice. If applicable, the provisions of clause (ii) of the immediately preceding sentence shall
apply to successive alternative selections. If no Independent Counsel that is permitted under the
foregoing provisions of this Section 7(e) to make the Standard of Conduct Determination shall have
been selected within 30 days after Indemnitee gives its initial notice pursuant to the first
sentence of this Section 7(e), either the Company or Indemnitee may petition the Court of Chancery
of the State of Delaware for resolution of any objection which shall have been made by the Company
to Indemnitee’s selection of Independent Counsel and/or for the appointment as Independent Counsel
of a person or firm selected by the Court or by the Company as the Court shall designate, and the
person or firm with respect to whom all objections are so resolved or the person or firm so
appointed will act as Independent Counsel. In all events, the Company shall pay all of the
reasonable fees and expenses of the Independent Counsel incurred in connection with the Independent
Counsel’s determination pursuant to Section 7(b).

     8. Presumption of Entitlement. In making any Standard of Conduct Determination, the person or
persons making such determination shall presume that Indemnitee has satisfied the applicable
standard of conduct, and the Company may overcome such presumption only by its adducing clear and
convincing evidence to the contrary. Any Standard of Conduct Determination that is adverse to
Indemnitee may be challenged by the Indemnitee in the Court of Chancery of the State of Delaware.
No determination by the Company (including without limitation by its directors or any Independent
Counsel) that Indemnitee has not satisfied any applicable standard of conduct shall be a defense to
any Claim by Indemnitee for indemnification or reimbursement or advance payment of Expenses by the
Company hereunder or create a presumption that Indemnitee has not met any applicable standard of
conduct.

     9. No Other Presumptions.

          (a) For purposes of this Agreement, the termination of any Claim by judgment, order,
settlement (whether with or without court approval) or conviction, or upon a plea of nolo
contendere or its equivalent, will not create a presumption that Indemnitee did not meet any
applicable standard of conduct or that indemnification hereunder is otherwise not permitted.

          (b) For purposes of this Agreement, the knowledge or actions, or failures to act, of another
person may not be imputed, attributed or charged to Indemnitee in connection with a determination
that Indemnitee has not met any applicable standard of conduct or that indemnification hereunder is
otherwise not permitted.

     10. Non-Exclusivity. The rights of Indemnitee hereunder will be in addition to any other
rights Indemnitee may have under the Constituent Documents, or the substantive laws of the

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Company’s jurisdiction of incorporation, any other contract or otherwise (collectively, “Other
Indemnity Provisions”); provided, however, that (a) to the extent that Indemnitee otherwise would
have any greater right to indemnification under any Other Indemnity Provision, Indemnitee will be
deemed to have such greater right hereunder and (b) to the extent that any change is made to any
Other Indemnity Provision which permits any greater right to indemnification than that provided
under this Agreement as of the date hereof, Indemnitee will be deemed to have such greater right
hereunder. The Company will not adopt any amendment to any of the Constituent Documents the effect
of which would be to deny, diminish or encumber Indemnitee’s right to indemnification under this
Agreement or any Other Indemnity Provision.

     11. Liability Insurance and Funding. For the duration of Indemnitee’s service as a director
and/or officer of the Company, and thereafter for so long as Indemnitee shall be subject to any
pending or possible Indemnifiable Claim, the Company shall use commercially reasonable efforts
(taking into account the scope and amount of coverage available relative to the cost thereof) to
cause to be maintained in effect with an insurance carrier having an AM Best rating of not less
than A-VI policies of directors’ and officers’ liability insurance providing coverage for directors
and/or officers of the Company that is at least substantially comparable in scope and amount to
that provided by the Company’s current policies of directors’ and officers’ liability insurance.
The Company shall provide Indemnitee with a copy of all directors’ and officers’ liability
insurance applications, binders, policies, declarations, endorsements and other related materials,
and shall provide Indemnitee with a reasonable opportunity to review and comment on the same.
Without limiting the generality or effect of the two immediately preceding sentences, the Company
shall not discontinue or significantly reduce the scope or amount of coverage from one policy
period to the next (i) without the prior approval thereof by a majority vote of the Incumbent
Directors, even if less than a quorum, or (ii) if at the time that any such discontinuation or
significant reduction in the scope or amount of coverage is proposed there are no Incumbent
Directors, without the prior written consent of Indemnitee (which consent shall not be unreasonably
withheld or delayed). In all policies of directors’ and officers’ liability insurance obtained by
the Company, Indemnitee shall be named as an insured in such a manner as to provide Indemnitee the
same rights and benefits, subject to the same limitations, as are accorded to the Company’s
directors and officers most favorably insured by such policy. The Company may, but shall not be
required to, create a trust fund, grant a security interest or use other means, including without
limitation a letter of credit, to ensure the payment of such amounts as may be necessary to satisfy
its obligations to indemnify and advance expenses pursuant to this Agreement.

     12. Subrogation. In the event of payment under this Agreement, the Company shall be
subrogated to the extent of such payment to all of the related rights of recovery of Indemnitee
against other persons or entities (other than Indemnitee’s successors), including without
limitation any entity or enterprise referred to in clause (i) of the definition of “Indemnifiable
Claim” in Section 1(f). Indemnitee shall execute all papers reasonably required to evidence such
rights (all of Indemnitee’s reasonable Expenses, including without limitation attorneys’ fees and
charges, related thereto to be reimbursed by or, at the option of Indemnitee, advanced by the
Company).

     13. No Duplication of Payments. The Company shall not be liable under this Agreement to make
any payment to Indemnitee in respect of any Indemnifiable Losses to the extent Indemnitee has
otherwise actually received payment (net of Expenses incurred in

11

 

connection therewith) under any insurance policy, the Constituent Documents and Other
Indemnity Provisions or otherwise (including without limitation from any entity or enterprise
referred to in clause (i) of the definition of “Indemnifiable Claim” in Section 1(f)) in respect of
such Indemnifiable Losses otherwise indemnifiable hereunder.

     14. Defense of Claims. The Company shall be entitled to assume the defense of any
Indemnifiable Claim, with counsel reasonably satisfactory to the Indemnitee, and after such counsel
has been retained the Company will not be liable to Indemnitee for any fees of other counsel
subsequently accrued by Indemnitee in connection therewith; provided that if Indemnitee believes,
after consultation with counsel selected by Indemnitee, that (a) the use of counsel chosen by the
Company to represent Indemnitee would present such counsel with an actual or potential conflict,
(b) the named parties in any such Indemnifiable Claim (including without limitation any impleaded
parties) include both the Company and Indemnitee and Indemnitee shall conclude that there may be
one or more legal defenses available to him or her that are different from or in addition to those
available to the Company, or (c) any such representation by such counsel would be precluded under
the applicable standards of professional conduct then prevailing, then Indemnitee shall be entitled
to retain separate counsel (but not more than one law firm plus, if applicable, local counsel in
respect of any particular Indemnifiable Claim) at the Company’s expense. If the Company assumes
the defense of any Indemnifiable Claim and Indemnitee is not entitled to retain separate counsel at
the Company’s expense pursuant to the immediately preceding sentence, Indemnitee shall be entitled
to retain counsel at Indemnitee’s own expense and participate therein. If the Company does not
assume the defense of an Indemnifiable Claim, the Company shall be entitled to participate therein.
The Company shall not be liable to Indemnitee under this Agreement for any amounts paid in
settlement of any threatened or pending Indemnifiable Claim effected without the Company’s prior
written consent. The Company shall not, without the prior written consent of the Indemnitee,
effect any settlement of any threatened or pending Indemnifiable Claim to which the Indemnitee is,
or could have been, a party unless (i) such settlement solely involves the payment of money (and
such payment is not a fine) and includes a complete and unconditional release of the Indemnitee
from all liability on any claims that are the subject matter of such Indemnifiable Claim without an
admission of liability or wrongdoing on the part of Indemnitee and (ii) the Company shall have
agreed Indemnitee is entitled to indemnification hereunder in respect of such Indemnifiable Claim.
Neither the Company nor Indemnitee shall unreasonably withhold its consent to any proposed
settlement; provided that Indemnitee may withhold consent to any settlement that does not provide a
complete and unconditional release of Indemnitee.

     15. Successors and Binding Agreement. (a) The Company shall require any successor (whether
direct or indirect, by purchase, merger, consolidation, reorganization or otherwise) to all or
substantially all of the business or assets of the Company, by agreement in form and substance
satisfactory to Indemnitee and his or her counsel, expressly to assume and agree to perform this
Agreement in the same manner and to the same extent the Company would be required to perform if no
such succession had taken place. This Agreement shall be binding upon and inure to the benefit of
the Company and any successor to the Company, including without limitation any person acquiring
directly or indirectly all or substantially all of the business or assets of the Company whether by
purchase, merger, consolidation, reorganization or otherwise (and such successor will thereafter be
deemed the “Company” for purposes of this Agreement), but shall not otherwise be assignable or
delegatable by the Company.

12

 

          (b) This Agreement shall inure to the benefit of and be enforceable by the Indemnitee’s
personal or legal representatives, executors, administrators, heirs, distributees, legatees and
other successors.

          (c) This Agreement is personal in nature and neither of the parties hereto shall, without the
consent of the other, assign or delegate this Agreement or any rights or obligations hereunder
except as expressly provided in Sections 15(a) and 15(b). Without limiting the generality or
effect of the foregoing, Indemnitee’s right to receive payments hereunder shall not be assignable,
whether by pledge, creation of a security interest or otherwise, other than by a transfer by the
Indemnitee’s will or by the laws of descent and distribution, and, in the event of any attempted
assignment or transfer contrary to this Section 15(c), the Company shall have no liability to pay
any amount so attempted to be assigned or transferred.

          (d) This Agreement shall continue in full force and effect after Indemnitee has ceased to be a
director and officer of the Company.

     16. Notices. For all purposes of this Agreement, all communications, including without
limitation notices, consents, requests or approvals, required or permitted to be given hereunder,
shall be in writing and shall be deemed to have been duly given when hand delivered or dispatched
by electronic facsimile transmission (with receipt thereof orally confirmed), or five business days
after having been mailed by United States registered or certified mail, return receipt requested,
postage prepaid or one business day after having been sent for next-day delivery by a nationally
recognized overnight courier service, addressed to either the Company (to the attention of the
Secretary of the Company) or to Indemnitee, as the case may be, at the applicable address shown on
the signature page hereto, or to such other address as such party may have furnished to the other
in writing and in accordance herewith, except that notices of changes of address will be effective
only upon receipt.

     17. Governing Law. The validity, interpretation, construction and performance of this
Agreement shall be governed by and construed in accordance with the substantive laws of the State
of Delaware, without giving effect to the principles of conflict of laws of such State. The
Company and Indemnitee each hereby irrevocably consent to the jurisdiction of the Chancery Court of
the State of Delaware for all purposes in connection with any action or proceeding which arises out
of, or relates to, this Agreement and agree that any action instituted under this Agreement shall
be brought only in the Chancery Court of the State of Delaware.

     18. Validity. If any provision of this Agreement or the application of any provision hereof
to any person or circumstance is held invalid, unenforceable or otherwise illegal, the remainder of
this Agreement and the application of such provision to any other person or circumstance shall not
be affected, and the provision so held to be invalid, unenforceable or otherwise illegal shall be
reformed to the extent, and only to the extent, necessary to make it enforceable, valid or legal.
In the event that any court or other adjudicative body shall decline to reform any provision of
this Agreement held to be invalid, unenforceable or otherwise illegal as contemplated by the
immediately preceding sentence, the parties hereto shall take all such action as may be necessary
or appropriate to replace the provision so held to be invalid, unenforceable or otherwise illegal
with one or more alternative provisions that effectuate the purpose and intent of the original
provisions of this Agreement as fully as possible without being invalid, unenforceable or otherwise
illegal.

13

 

     19. Miscellaneous. No provision of this Agreement may be waived, modified or discharged
unless such waiver, modification or discharge is agreed to in writing signed by Indemnitee and the
Company. No waiver by either party hereto at any time of any breach by the other party hereto, or
compliance with any condition or provision of this Agreement to be performed by such other party,
shall be deemed a waiver of similar or dissimilar provisions or conditions at the same or at any
prior or subsequent time. No agreements or representations, oral or otherwise, expressed or
implied with respect to the subject matter hereof have been made by either party that are not set
forth expressly in this Agreement.

     20. Legal Fees and Expenses. It is the intent of the Company that Indemnitee not be required
to incur legal fees and or other Expenses associated with the interpretation, enforcement or
defense of Indemnitee’s rights under this Agreement by litigation or otherwise because the cost and
expense thereof would substantially detract from the benefits intended to be extended to Indemnitee
hereunder. Accordingly, without limiting the generality or effect of any other provision hereof,
if it should appear to Indemnitee that the Company has failed to comply with any of its obligations
under this Agreement or in the event that the Company or any other person takes or threatens to
take any action to declare this Agreement void or unenforceable, or institutes any litigation or
other action or proceeding designed to deny, or to recover from, Indemnitee the benefits provided
or intended to be provided to Indemnitee hereunder, the Company irrevocably authorizes the
Indemnitee from time to time to retain counsel of Indemnitee’s choice (other than the Company’s
in-house counsel), at the expense of the Company as hereafter provided, to advise and represent
Indemnitee in connection with any such interpretation, enforcement or defense, including without
limitation the initiation or defense of any litigation or other legal action, whether by or against
the Company or any director, officer, stockholder or other person affiliated with the Company, in
any jurisdiction. Notwithstanding any existing or prior attorney-client relationship between the
Company and such counsel, the Company irrevocably consents to Indemnitee’s entering into an
attorney-client relationship with such counsel, and in that connection the Company and Indemnitee
agree that a confidential relationship shall exist between Indemnitee and such counsel. Without
respect to whether Indemnitee prevails, in whole or in part, in connection with any of the
foregoing, the Company will pay and be solely financially responsible for any and all attorneys’
and related fees and expenses incurred by Indemnitee in connection with any of the foregoing.

     21. Certain Interpretive Matters. Unless the context of this Agreement otherwise requires,
(a) “it” or “its” or words of either gender include both genders, (b) words using the singular or
plural number also include the plural or singular number, respectively, (c) the terms “hereof,”
“herein,” “hereby” and derivative or similar words refer to this entire Agreement, (d) the term
“Section” refers to the specified Section of this Agreement, and (e) the word “or” is disjunctive
but not exclusive. Whenever this Agreement refers to a number of days, such number will refer to
calendar days unless business days are specified and whenever action must be taken (including
without limitation the giving of notice or the delivery of documents) under this Agreement during a
certain period of time or by a particular date that ends or occurs on a non-business day, then such
period or date will be extended until the immediately following business day. As used herein,
“business day” means any day other than Saturday, Sunday or a United States federal holiday. All
terms defined in this Agreement will have such defined meanings when used in any document made or
delivered pursuant hereto unless otherwise defined. The Section headings contained in this
Agreement are inserted for convenience only and do not constitute a part of this Agreement.

14

 

     22. Counterparts. This Agreement may be executed in two counterparts, each of which will be
deemed to be an original but both of which together shall constitute one and the same agreement.

[Signatures Appear On Following Page]

15

 

     IN WITNESS WHEREOF, Indemnitee has executed and the Company has caused its duly authorized
representative to execute this Agreement as of the date first above written.

	 	 	 	 	 
	 	 	KAISER ALUMINUM CORPORATION
	 	 	27422 Portola Parkway, Suite 350
	 	 	Foothill Ranch, California 92610-2831
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Name:
	 

	 	 	 	Title:
	 
	 	 	 	 
	 	 	[INDEMNITEE]
	 	 	[Address]
	 
	 	 	 	 
	 	 	 
	 	 	[Indemnitee]

16exv10w12

 

Exhibit 10.12

[Executive Officer Grants]

Restricted Stock Award Agreement

Under the 2006 Equity and Performance

Incentive Plan

Kaiser Aluminum Corporation

 

Kaiser Aluminum Corporation

2006 Equity and Performance Incentive Plan

Restricted Stock Award Agreement

     You have been selected to receive a grant of Restricted Stock pursuant to the Kaiser
Aluminum Corporation 2006 Equity and Performance Incentive Plan (the “Plan”), as specified below:

     Participant:
                                                             
      
                                    

     Date
of Grant:                                                                     
                                     

     Number
of Shares of Restricted Stock Granted:
                                                 

     Purchase
Price: $
          per share of Restricted Stock

     Lapse of Restriction Date: Restrictions placed on the shares of Restricted Stock shall lapse
on the date and in the amount listed below:

	 	 	 	 	 
	Date on Which	 	Number of Shares for	 	Cumulative Number of Shares
	Restrictions Lapse	 	Which Restrictions Lapse	 	for Which Restrictions Lapse
	 
	 

	 	 
	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	 

     THIS RESTRICTED STOCK AWARD AGREEMENT, effective as of the Date of Grant set forth
above (this “Agreement”), represents the grant of Restricted Stock by Kaiser Aluminum Corporation,
a Delaware corporation (the “Company”), to the Participant named above, pursuant to the provisions
of the Plan.

     The Plan provides a complete description of the terms and conditions governing the Restricted
Stock. If there is any inconsistency between the terms of this Agreement and the terms of the
Plan, the Plan’s terms shall completely supersede and replace the conflicting terms of this
Agreement. All capitalized terms shall have the meanings ascribed to them in the Plan, unless
specifically set forth otherwise herein. The parties hereto agree as follows:

     1. Employment with the Company. Except as may otherwise be provided in Sections 5 or 6 of
this Agreement, the shares of Restricted Stock granted hereunder are granted on the condition that
the Participant remains an Employee of the Company from the Date of Grant through (and including)
the “Date on which Restrictions Lapse” set forth in the table above opposite such number of shares
of Restricted Stock (such applicable periods each being referred to herein as a “Period of
Restriction”).

     This grant of Restricted Stock shall not confer any right to the Participant (or any other
Participant) to be granted Restricted Stock or other Awards in the future under the Plan.

1

 

     2. Certificate Legend. Each certificate representing, or book entry account maintaining,
shares of Restricted Stock granted pursuant to the Plan shall bear the following legend:

“The sale or other transfer of the shares of common stock represented by this
certificate, whether voluntary, involuntary or by operation of law, is subject
to certain restrictions on transfer as set forth in the Kaiser Aluminum
Corporation 2006 Equity and Performance Incentive Plan (the “Plan”), and in
the associated Restricted Stock Award Agreement. A copy of the Plan and such
Restricted Stock Award Agreement may be obtained from Kaiser Aluminum
Corporation.”

     3. Receipt and Delivery of Stock; Removal of Restrictions.

	 	(a)	 	The Participant waives receipt from the Company of a certificate or
certificates representing the shares of Restricted Stock granted hereunder,
registered in the Participant’s name and bearing a legend evidencing the
restrictions imposed on such shares of Restricted Stock by this Agreement. The
Participant acknowledges and agrees that the Company shall retain custody of such
certificate or certificates until the restrictions imposed by the Period of
Restriction on the shares of Restricted Stock granted hereunder lapse. The
Participant acknowledges and agrees that, alternatively, the shares of Restricted
Stock granted hereunder may be maintained in book-entry form with instructions from
the Company to the Company’s transfer agent that such shares shall remain restricted
until the restrictions imposed by the Period of Restriction on such shares lapse.
	 
	 	(b)	 	Except as may otherwise be provided herein and in the Plan, the shares of
Restricted Stock granted pursuant to this Agreement shall become freely transferable
by the Participant on the date and in the amount set forth under the Lapse of
Restriction Dates above, subject to all restrictions on transfers imposed by the
Company’s certificate of incorporation, bylaws or insider trading policies as in
effect from time to time or by applicable federal or state securities laws. Once
shares of Restricted Stock granted pursuant to this Agreement are no longer subject
to any restrictions on transfer under this Agreement or the Plan, the Participant
shall be entitled to have the legend required by Section 2 of this Agreement removed
from the applicable stock certificates or book-entry account.

     4. Voting Rights and Dividends. During a Period of Restriction, the Participant may exercise
full voting rights and shall receive all dividends and other distributions paid with respect to the
shares of Restricted Stock held by the Participant; provided, however, that if any such dividends
or distributions are paid in shares of the Company’s capital stock, such shares shall be subject to
the same restrictions on transferability as are the shares of Restricted Stock with respect to
which they were paid.

     5. Termination of Employment.

	 	(a)	 	By Death. In the event the Participant ceases to be an Employee of the
Company by reason of death during a Period of Restriction, all shares of Restricted
Stock held by the Participant at the time of death shall no longer be subject to the
Period of

2

 

	 	 	 	Restriction and shall become freely transferable (subject, however, to all
restrictions on transfer imposed by the Company’s certificate of incorporation or
bylaws or by applicable federal or state securities laws) by such Person or Persons
as shall have been named as the Participant’s beneficiary, or by such Persons that
have acquired the Participant’s rights under the shares of Restricted Stock by will
or the laws of descent and distribution. Once the shares of Restricted Stock are
no longer subject to any restrictions on transfer under this Agreement or the Plan,
the Person holding such shares shall be entitled to have the legend required by
Section 2 of this Agreement removed from the applicable stock certificates or
book-entry account.
	 
	 	(b)	 	By Disability. In the event the Participant ceases to be an Employee of
the Company by reason of Disability (as defined in this Section 5(b)) during a
Period of Restriction, all shares of Restricted Stock held by the Participant at the
time of employment termination shall no longer be subject to the Period of
Restriction and shall become freely transferable (subject, however, to all
restrictions on transfer imposed by the Company’s certificate of incorporation or
bylaws or by applicable federal or state securities laws) by the Participant. Once
shares of Restricted Stock are no longer subject to any restrictions on transfer
under this Agreement or the Plan, the Person holding such shares shall be entitled
to have the legend required by Section 2 of this Agreement removed from the
applicable stock certificates or book-entry account.
	 
	 	 	 	“Disability” shall be defined as a total and permanent disability as a result of
bodily injury, disease or mental disorder which results in the Participant’s
entitlement to long-term disability benefits under the Kaiser Aluminum Self-Insured
Welfare Plan or the Kaiser Aluminum Salaried Employees Retirement Plan.
	 
	 	(c)	 	Involuntary Termination Other Than For Cause or Detrimental Activity;
Termination For Good Reason. In the event the Participant ceases to be an Employee
of the Company because either (i) the Company or any of its Subsidiaries terminates
such employment for any reason other than in a termination for Cause or other
Detrimental Activity or (ii) the Participant terminates his or her employment for
Good Reason, all shares of Restricted Stock held by the Participant at the time of
employment termination shall no longer be subject to the Period of Restriction and
shall become freely transferable (subject, however, to all restrictions on transfer
imposed by the Company’s certificate of incorporation or bylaws or by applicable
federal or state securities laws) by the Participant. Once shares of Restricted
Stock are no longer subject to any restrictions on transfer under this Agreement or
the Plan, the Person holding such shares shall be entitled to have the legend
required by Section 2 of this Agreement removed from the applicable stock
certificates or book-entry account.
	 
	 	(d)	 	For Other Reasons. In the event the Participant ceases to be an Employee
of the Company for any reason other than the reasons set forth in Section 5(a), 5(b)
or 5(c) of this Agreement during a Period of Restriction, all shares of Restricted
Stock held by the Participant at the time of employment termination and still
subject to the restrictions on transfer pursuant to Section 7 of this Agreement
shall be forfeited by

3

 

	 	 	 	the Participant to the Company. Upon forfeiture of the Restricted Stock, the
Company shall have the right, at the sole discretion of the Committee, to vest all
or any portion of the Restricted Stock grant held by the Participant.

     6. Change in Control. Notwithstanding anything to the contrary in this Agreement, in the
event of a Change in Control of the Company during a Period of Restriction and prior to the
Participant ceasing to be an Employee of the Company, the Period of Restriction shall immediately
lapse, with all such shares of Restricted Stock vesting and becoming freely transferable by the
Participant, subject to restrictions on transfers imposed by the Company’s certificate of
incorporation, bylaws or insider trading policies as in effect from time to time or by applicable
federal or state securities laws.

     7. Restrictions on Transfer. Unless otherwise determined by the Committee in accordance with
the Plan, during the applicable Period of Restriction, shares of Restricted Stock granted pursuant
to this Agreement may not be sold, transferred, pledged, assigned, or otherwise alienated or
hypothecated (a “Transfer”), other than by will or the laws of descent and distribution or pursuant
to a qualified domestic relations order. If, during a Period of Restriction, any Transfer, whether
voluntary or involuntary, of shares of Restricted Stock is made other than in accordance with this
Agreement or the Plan, or if any attachment, execution, garnishment or lien shall be issued against
or placed upon the shares of Restricted Stock, the Participant’s right to such shares of Restricted
Stock shall be immediately forfeited by the Participant to the Company, and all obligations of the
Company under this Agreement shall terminate.

     8. Detrimental Activity. If the Participant, either during employment by the Company or a
Subsidiary or within one (1) year after termination of such employment, shall engage in any
Detrimental Activity, and the Committee shall so find, forthwith upon notice of such finding, the
Participant shall:

	 	(a)	 	Forfeit any shares of Restricted Stock then held by the Participant;
	 
	 	(b)	 	Return to the Company, in exchange for payment by the Company of any cash
amount actually paid therefor by the Participant (unless such payment is prohibited
by law), all Common Shares that the Participant has not disposed of that were
offered pursuant to the Plan within one (1) year prior to the date of the
commencement of such Detrimental Activity; and
	 
	 	(c)	 	With respect to any Common Shares so acquired that the Participant has
disposed of, pay to the Company in cash the difference between:

	 	(i)	 	any cash amount actually paid therefor by the Participant
pursuant to the Plan, and
	 
	 	(ii)	 	the Market Value per Share of the Common Shares on the date
of such acquisition.

To the extent that such amounts are not paid to the Company, the Company may, to the extent
permitted by law, set off the amounts so payable to it against any amounts that may be owing from

4

 

time to time by the Company or a Subsidiary to the Participant, whether as wages, deferred
compensation or vacation pay or in the form of any other benefit or for any other reason.

     9. Beneficiary Designation. The Participant may, from time to time, name any beneficiary or
beneficiaries (who may be named contingently or successively) to whom any benefit under this
Agreement is to be paid in case of the Participant’s death before the Participant receives all of
such benefit. Each such designation shall revoke all prior designations by the Participant, shall
be in a form prescribed by the Company, and will be effective only when filed by the Participant in
writing with the Vice President Human Resources of the Company during the Participant’s lifetime.
In the absence of any such designation, benefits remaining unpaid at the Participant’s death shall
be paid to the Participant’s estate.

     10. Continuation of Employment. This Agreement shall not confer upon the Participant any
right with respect to continuance of employment with the Company or any Subsidiary, nor shall this
Agreement interfere in any way with any right the Company or any Subsidiary would otherwise have to
terminate the Participant’s employment or other service at any time.

     11. Miscellaneous.

	 	(a)	 	This Agreement and the rights of the Participant hereunder are subject to
all the terms and conditions of the Plan, as the same may be amended from time to
time, as well as to such rules and regulations as the Committee may adopt for
administration of the Plan. It is expressly understood that the Committee is
authorized to administer, construe and make all determinations necessary or
appropriate to the administration of the Plan and this Agreement, all of which shall
be binding upon the Participant.
	 
	 	(b)	 	In accordance with Section 19 of the Plan, the Board may terminate, amend
or modify the Plan.
	 
	 	(c)	 	The Participant shall, not later than the applicable “Date on which
Restrictions Lapse” as set forth in the table on page 1 of this Agreement, pay to
the Company or make arrangements satisfactory to the Committee for payment of any
federal, state and local taxes (including the Participant’s FICA obligation),
whether domestic or foreign, required by law to be withheld on account of such
event.
	 
	 	 	 	The Participant acknowledges and agrees that the Company shall have the power and
the right to deduct or withhold an amount sufficient to satisfy federal, state and
local taxes (including the Participant’s FICA obligation), whether domestic or
foreign, required by law to be withheld with respect to any exercise of the
Participant’s rights under this Agreement should Participant fail to make timely
payment of all taxes due.
	 
	 	 	 	The Participant may elect, subject to the Plan and any procedural rules adopted by
the Committee, to satisfy the withholding requirement, in whole or in part, by
having the Company withhold shares having an aggregate Fair Market Value on the
date the tax is to be determined, equal to the amount required to be withheld.

5

 

	 	(d)	 	The Participant agrees to take all steps necessary to comply with all
applicable provisions with respect transfers of the Company’s securities imposed by
the Company’s certificate of incorporation, bylaws and insider trading policies as
in effect from time to time and federal and state securities laws in exercising his
or her rights under this Agreement.
	 
	 	(e)	 	All obligations of the Company under the Plan and this Agreement, with
respect to the Restricted Stock, shall be binding on any successor (whether direct
or indirect, by purchase, merger, consolidation, reorganization or otherwise) to all
or substantially all of the business or assets of the Company.
	 
	 	(f)	 	This Agreement shall be governed by and construed in accordance with the
internal substantive laws of the State of Delaware.
	 
	 	(g)	 	Notice hereunder shall be given to the Company at its principal place of
business, and shall be given to the Participant at the address set forth below, or
in either case at such address as one party may subsequently furnish to the other
party in writing.

     12. Definitions.

	 	(a)	 	“Beneficial Owner” or “Beneficial Ownership” shall have the meaning
ascribed to such term in Rule 13d-3 of the General Rules and Regulations under the
Exchange Act.
	 
	 	(b)	 	“Board” or “Board of Directors” means the Board of Directors of the
Company.
	 
	 	(c)	 	“Business Combination” means a reorganization, merger or consolidation,
or sale or other disposition of all or substantially all of the assets of the
Company or the acquisition of assets of another corporation or entity, or other
transaction.
	 
	 	(d)	 	“Change in Control” means the occurrence on or after the date of this
Agreement of any of the following events:

	 	(i)	 	the acquisition by any Person of Beneficial Ownership of 35%
or more of the combined voting power of the then-outstanding Voting Stock of
the Company; provided, however, that:

	 	(A)	 	for purposes of this Section 12(d)(i), the
following acquisitions shall not constitute a Change in Control: (1)
any acquisition of Voting Stock of the Company directly from the
Company (x) pursuant to the POR or (y) that is approved by a majority
of the Incumbent Directors, (2) any acquisition of Voting Stock of the
Company by the Company or any Subsidiary, (3) any acquisition of Voting
Stock of the Company by any employee benefit plan (or related trust)
sponsored or maintained by the Company or any Subsidiary (other than
any voluntary employee beneficiary association established in
connection with the POR), and (4) any acquisition of Voting Stock of
the

6

 

	 	 	 	Company by any Person pursuant to a Business Combination that
complies with clauses (A), (B) and (C) of Section 12(d)(iii) below;

	 	(B)	 	if any Person acquires Beneficial Ownership of
35% or more of combined voting power of the then-outstanding Voting
Stock of the Company as a result of a transaction described in clause
(A)(1) of Section 12(d)(i) and such Person thereafter becomes the
beneficial owner of any additional shares of Voting Stock of the
Company representing 1% or more of the then-outstanding Voting Stock of
the Company, other than in an acquisition directly from the Company
pursuant to the POR, in an acquisition directly from the Company in a
transaction that is approved by a majority of the Incumbent Directors
or other than as a result of a stock dividend, stock split or similar
transaction effected by the Company in which all holders of Voting
Stock are treated equally, such subsequent acquisition shall be deemed
to constitute a Change in Control;
	 
	 	(C)	 	a Change in Control will not be deemed to have
occurred if a Person acquires beneficial ownership of 35% or more of
the Voting Stock of the Company as a result of a reduction in the
number of shares of Voting Stock of the Company outstanding unless and
until such Person thereafter becomes the beneficial owner of any
additional shares of Voting Stock of the Company representing 1% or
more of the then-outstanding Voting Stock of the Company, other than in
an acquisition directly from the Company pursuant to the POR, in an
acquisition directly from the Company in a transaction that is approved
by a majority of the Incumbent Directors or other than as a result of a
stock dividend, stock split or similar transaction effected by the
Company in which all holders of Voting Stock are treated equally; and
	 
	 	(D)	 	if at least a majority of the Incumbent
Directors determine in good faith that a Person has acquired beneficial
ownership of 35% or more of the Voting Stock of the Company
inadvertently, and such Person divests as promptly as practicable a
sufficient number of shares so that such Person beneficially owns less
than 35% of the Voting Stock of the Company, then no Change in Control
shall have occurred as a result of such Person’s acquisition; or

	 	(ii)	 	a majority of the Directors are not Incumbent Directors; or
	 
	 	(iii)	 	the consummation of a Business Combination, unless, in each
case, immediately following such Business Combination (A) all or substantially
all of the individuals and entities who were the beneficial owners of Voting
Stock of the Company immediately prior to such Business Combination
beneficially own, directly or indirectly, more than 60% of the combined voting
power of the then outstanding shares of Voting Stock of the entity resulting
from such Business Combination (including without limitation an entity which
as a result

7

 

	 	 	 	of such transaction owns the Company or all or substantially all of the
Company’s assets either directly or through one or more subsidiaries), (B) no
Person (other than the Company, such entity resulting from such Business
Combination, any employee benefit plan (or related trust) sponsored or
maintained by the Company, any Subsidiary or such entity resulting from such
Business Combination (other than any voluntary employee beneficiary
association established in connection with the POR) or any Person that
immediately prior to such Business Combination owns, directly or indirectly,
35% or more of the Voting Stock of the Company so long as such Person does not
at such time own, directly or indirectly, more than 1% of the securities of
the other corporation or other entity involved in such Business Combination to
be converted into or exchanged for shares of Voting Stock of the entity
resulting from such Business Combination pursuant to such Business
Combination)) beneficially owns, directly or indirectly, 35% or more of the
combined voting power of the then outstanding shares of Voting Stock of the
entity resulting from such Business Combination, and (C) at least a majority
of the members of the Board of Directors of the entity resulting from such
Business Combination were Incumbent Directors at the time of the execution of
the initial agreement or of the action of the Board providing for such
Business Combination; or
	 
	 	(iv)	 	approval by the stockholders of the Company of a complete
liquidation or dissolution of the Company, except pursuant to a Business
Combination that complies with clauses (A), (B) and (C) of Section 12(d)(iii).

	 	(e)	 	“Director” shall mean a member of the Board of Directors of the Company.
	 
	 	(f)	 	“Employee of the Company” means an officer or employee of the Company or
one or more of its Subsidiaries.
	 
	 	(g)	 	“Exchange Act” means the Securities Exchange Act of 1934, as amended from
time to time, or any successor act thereto.
	 
	 	(h)	 	“Good Reason” means, without a Participant’s consent, the occurrence of
any of the following events which is not cured by the Company within ten (10)
business days following the Participant’s written notice to the Company of the event
constituting Good Reason; provided, however, that any such written notice received
by the Company following the thirty (30) day period after the date on which the
Participant first had knowledge of the occurrence of such event giving rise to Good
Reason (or, in the case of multiple events, the latest to occur of such events)
shall not be effective and the Participant shall be deemed to have waived his/her
right to terminate employment for Good Reason with respect to such event:

	 	(i)	 	Demotion, reduction in title, reduction in position or
responsibilities, or change in reporting responsibilities or reporting level
that is materially and adversely inconsistent with the Participant’s then
position or the assignment of duties and/or responsibilities materially and
adversely inconsistent with such position; or

8

 

	 	(ii)	 	Relocation of the Participant’s primary office location more
than fifty (50) miles from the Participant’s then current office location; or
	 
	 	(iii)	 	Reduction of greater than 10% in the Participant’s then base
salary or reduction of greater than 10% in the Participant’s then long term or
short term incentive compensation opportunity or a reduction in the
Participant’s eligibility for participation in the Company’s benefit plans
that is not commensurate with a similar reduction among similarly situated
employees.

	 	(i)	 	“Incumbent Directors” means the individuals who, as of the date hereof,
are Directors of the Company and any individual becoming a Director subsequent to
the date hereof whose election, nomination for election by the Company’s
stockholders, or appointment was approved by a vote of at least two-thirds of the
then Incumbent Directors (either by a specific vote or by approval of the proxy
statement of the Company in which such person is named as a nominee for director
without objection to such nomination); provided, however, that an individual shall
not be an Incumbent Director if such individual’s election or appointment to the
Board occurs as a result of an actual or threatened election contest (as described
in Rule 14a-12(c) of the Exchange Act) with respect to the election or removal of
Directors or other actual or threatened solicitation of proxies or consents by or on
behalf of a Person other than the Board.
	 
	 	(j)	 	“Person” shall have the meaning ascribed to such term in Section 3(a)(9)
of the Exchange Act and used in Sections 13(d) and 14(d) thereof, including a
“group” as defined in Section 13(d).
	 
	 	(k)	 	“POR” means the Second Amended Joint Plan of Reorganization of Kaiser
Aluminum Corporation, Kaiser Aluminum & Chemical Corporation and Certain of Their
Debtor Affiliates, as modified, filed pursuant to section 1121(a) of title 11 of the
United States Code and confirmed by an order of the United States Bankruptcy Court
for the District of Delaware entered on February 6, 2006, which confirmation was
affirmed by an order of the United States District Court for the District of
Delaware entered on May 11, 2006.
	 
	 	(l)	 	“Cause” means (1) the Participant’s engaging in fraud, embezzlement,
gross misconduct or any act of gross dishonesty with respect to the Company or its
affiliates, (2) the Participant’s habitual drug or alcohol use which impairs the
ability of the Participant to perform his duties with the Company or its affiliates,
(3) the Participant’s indictment with respect to, conviction of, or plea of guilty
or no contest to, any felony, or other comparable crime under applicable local law
(except, in any event, for motor vehicle violations not involving personal injuries
to third parties or driving while intoxicated), or the Participant’s incarceration
with respect to any of the foregoing that, in each case, impairs the Participant’s
ability to continue to perform his duties with the Company and its affiliates, or
(4) the Participant’s material breach of any written employment agreement or other
agreement between the Company and the Participant, or of the Company’s Code of
Business Conduct, or failure by the Participant to substantially perform his or her
duties for the Company which remains uncorrected or reoccurs after written notice
has been delivered to the

9

 

	 	 	 	Participant demanding substantial performance and the Participant has had a
reasonable opportunity to correct such breach or failure to perform.
	 
	 	(m)	 	“Voting Stock” means securities entitled to vote generally in the
election of directors (or similar governing bodies).

10

 

     IN WITNESS WHEREOF, the Company has caused this Agreement to be executed effective as of the
Date of Grant.

	 	 	 	 	 	 	 	 	 
	 	 	Kaiser Aluminum Corporation	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 	 	 

The foregoing Agreement is hereby accepted and the terms and conditions thereof are hereby agreed
to by the Participant.

	 	 	 	 	 
	 

	 	 

Participant
	 	 
	 
	 	 	 	 
	 

	 	Participant’s name and address:	 	 
	 
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 

DESIGNATION OF BENEFICIARY:

I hereby designate                                                                   
                               as my primary beneficiary
and                                                                               
                    as my contingent beneficiary to receive the
amounts attributable to my account hereunder and payable under the Plan in the event of my death.

11

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