Document:

exv10w13

 

Exhibit 10.13

[Non-Employee Director 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

     As a Non-Employee Director of the Company, you are receiving this grant of Restricted
Stock pursuant to the Kaiser Aluminum Corporation 2006 Equity and Performance Incentive Plan (the
“Plan”), as specified below:

     Director:
                                                                                                    

     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 Director 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. Service as a Director of 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 Director remains a Director 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 Director 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 Director waives receipt from the Company of a certificate or
certificates representing the shares of Restricted Stock granted hereunder,
registered in the Director’s name and bearing a legend evidencing the restrictions
imposed on such shares of Restricted Stock by this Agreement. The Director
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 Director 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 Director 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 Director 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 Director 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 Director; 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.

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     5. Termination as a Director.

	 	(a)	 	By Death. In the event the service of the Director to the Company is
terminated by reason of death during a Period of Restriction, all shares of
Restricted Stock held by the Director at the time of death 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 such
Person or Persons as shall have been named as the Director’s beneficiary, or by such
Persons that have acquired the Director’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 services of the Director to the Company
is terminated by reason of Disability (as defined in this Section 5(b)) during a
Period of Restriction, all shares of Restricted Stock held by the Director 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 Director. 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 disability as a result of bodily injury, disease
or mental disorder which results in the inability of the Director to continue to
serve as a director of the Company.
	 
	 	(c)	 	For Other Reasons. In the event the service of the Director to the
Company is terminated for any reason other than the reasons set forth in Section
5(a) or 5(b) of this Agreement during a Period of Restriction, all shares of
Restricted Stock held by the Director at such time and still subject to the
restrictions on transfer pursuant to Section 7 of this Agreement shall be forfeited
by the Director to the Company. Upon forfeiture of the Restricted Stock, the
Company shall have the right, at the sole discretion of the Board, to vest all or
any portion of the Restricted Stock grant held by the Director.

     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
Director’s termination of service as a Director, the Period of Restriction shall immediately lapse,
with all such shares of Restricted Stock vesting and becoming freely transferable by the Director,
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.

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     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 Director’s right to such shares of Restricted
Stock shall be immediately forfeited by the Director to the Company, and all obligations of the
Company under this Agreement shall terminate.

     8. Beneficiary Designation. The Director 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 Director’s death before the Director receives all of such
benefit. Each such designation shall revoke all prior designations by the Director, shall be in a
form prescribed by the Company, and will be effective only when filed by the Director in writing
with the Vice President Human Resources of the Company during the Director’s lifetime. In the
absence of any such designation, benefits remaining unpaid at the Director’s death shall be paid to
the Director’s estate.

     9. Miscellaneous.

	 	(a)	 	This Agreement and the rights of the Director 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 Director.
	 
	 	(b)	 	In accordance with Section 19 of the Plan, the Board may terminate, amend
or modify the Plan.
	 
	 	(c)	 	The Director 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.
	 
	 	(d)	 	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.
	 
	 	(e)	 	This Agreement shall be governed by and construed in accordance with the
internal substantive laws of the State of Delaware.

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	 	(f)	 	Notice hereunder shall be given to the Company at its principal place of
business, and shall be given to the Director 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.

     10. 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 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

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	 	 	 	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 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

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	 	 	 	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)	 	“Exchange Act” means the Securities Exchange Act of 1934, as amended from
time to time, or any successor act thereto.
	 
	 	(g)	 	“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.
	 
	 	(h)	 	“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).
	 
	 	(i)	 	“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.
	 
	 	(j)	 	“Voting Stock” means securities entitled to vote generally in the
election of directors (or similar governing bodies).

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     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 Director.

	 	 	 	 	 
	 

	 	 	 	 
	 

	 	Director	 	 
	 
	 

	 	Director’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.

8exv10w14

 

Exhibit 10.14

KAISER ALUMINUM

FABRICATED PRODUCTS

RESTORATION PLAN

Effective May 1, 2005

 

 

KAISER ALUMINUM

FABRICATED PRODUCTS

RESTORATION PLAN

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	PREAMBLE	 	 	 	Page No.
	 	 

	ARTICLE I	 	Establishment of Plan and Purpose
	 	 	1	 
	 	 	 
	 	 	 	 
	ARTICLE II	 	Definitions and Construction
	 	 	1	 
	 	 	2.1 - Definitions
	 	 	1	 
	 	 	2.2 - Construction
	 	 	7	 
	 	 	2.3 - Governing Law
	 	 	7	 
	 	 	 
	 	 	 	 
	ARTICLE III	 	Participation and Participant Elections
	 	 	7	 
	 	 	3.1 - Participation
	 	 	7	 
	 	 	3.2 - Participant Elections
	 	 	7	 
	 	 	3.3 - Cessation of Participation
	 	 	8	 
	 	 	 
	 	 	 	 
	ARTICLE 1V	 	Company Contributions
	 	 	8	 
	 	 	4.1 - Matching Contributions
	 	 	8	 
	 	 	4.2 - Fixed-Rate Contributions
	 	 	9	 
	 	 	4.3 - Vesting
	 	 	9	 
	 	 	4.4 - Forfeitures
	 	 	9	 
	 	 	4.5 - Contributions for 2005 and 2006
	 	 	10	 
	 	 	 
	 	 	 	 
	ARTICLE V	 	Maintenance of Participant Accounts
	 	 	10	 
	 	 	5.1 - Establishment of Participant Accounts
	 	 	10	 
	 	 	5.2 - Valuation of Accounts
	 	 	10	 
	 	 	5.3 - Hypothetical Investment Benchmarks
	 	 	10	 
	 	 	5.4 - Statement of Participant Accounts
	 	 	11	 
	 	 	 
	 	 	 	 
	ARTICLE VI	 	Distribution of Benefits
	 	 	11	 
	 	 	6.1 - Distribution of Benefits
	 	 	11	 
	 	 	 
	 	 	 	 
	ARTICLE VII	 	Death Benefits
	 	 	11	 
	 	 	7.1 - Death Benefits
	 	 	11	 
	 	 	 
	 	 	 	 
	ARTICLE VIII	 	Administration
	 	 	12	 
	 	 	8.1 - The Committee
	 	 	12	 
	 	 	8.2 - Powers and Duties of the Committee
	 	 	12	 
	 	 	8.3 - Nondiscriminatory Exercise Of Authority
	 	 	12	 
	 	 	8.4 - Participant as a Committee Member
	 	 	12	 
	 	 	8.5 - Claims Procedure
	 	 	12	 
	 	 	 
	 	 	 	 
	ARTICLE IX	 	Miscellaneous Provisions
	 	 	13	 

i

 

	 	 	 	 	 	 	 
	PREAMBLE	 	 	 	Page No.
	 	 

	 	 	9.1 - No Commitment as to Employment
	 	 	13	 
	 	 	9.2 - Indemnification
	 	 	13	 
	 	 	9.3 - Amendment; Termination
	 	 	13	 
	 	 	9.4 - Binding Effect
	 	 	14	 
	 	 	9.5 - Construction of Plan
	 	 	14	 
	 	 	9.6 - Validity of Plan
	 	 	14	 
	 	 	9.7 - Title To Assets
	 	 	14	 
	 	 	9.8 - Expenses
	 	 	14	 
	 	 	9.9 - Inalienability of Benefits
	 	 	14	 
	 	 	9.10 - Payment of Benefits
	 	 	14	 
	 	 	 
	 	 	 	 
	ARTICLE X	 	Source of Payment of Benefits
	 	 	15	 
	 	 	10.1 - Source of Payments of Benefits
	 	 	15	 

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ARTICLE I

ESTABLISHMENT OF PLAN AND PURPOSE

Kaiser Aluminum Fabricated Products, LLC (the “Company”), hereby adopts and establishes the Kaiser
Aluminum Fabricated Products Restoration Plan (“Plan”). The Effective Date of the Plan is as of
May 1, 2005. However, the Plan will become operative as of July
6, 2006, the date the Plan was
adopted by the Board of Directors of the Company and KAC. The Plan shall apply to all Eligible
Employees who become Participants on or after the Effective Date. In addition, benefits accrued to
participants under the Kaiser Aluminum Supplemental Benefits Plan through April 30, 2005 will
transfer to the Plan as soon as administratively feasible.

The purpose of the Plan is to restore benefits that would have otherwise been payable to
participants under the Company’s benefit plans but for the limitations on benefit accruals and
payments imposed by the Code.

It is the intention of the Company that the Plan meet all of the requirements necessary to qualify
as a nonqualified, unfunded, unsecured plan of deferred compensation (for a select group of
management or highly compensated employees) within the meaning of Sections 201(2), 301(a)(3) and
401(a)(1) of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”) and all Plan
provisions shall be interpreted accordingly. Further, it is the intention of the Company for the
Plan to meet all of the requirements of Code Section 409A and any regulations or guidance
promulgated thereunder so that all amounts deferred on behalf of a Participant hereunder shall not
be includible in the income of the Participant until distributed to the Participant.

ARTICLE II

DEFINITIONS AND CONSTRUCTION

2.1 Definition. Where the following words and phrases appear in this Plan, they shall have
the respective meanings set forth below, unless their context clearly indicates to the contrary:

	(a)	 	Account. A bookkeeping account of a Participant’s interest in the Plan represented
by the Matching Contributions and Fixed-Rate Contributions made on behalf of the Participant,
with all earnings thereon credited to such contributions and all losses, expenses and
distributions thereon debited from such contributions. A Participant’s Account shall consist
of two subaccounts: the Participant’s Matching Contribution Account and the Participant’s
Fixed-Rate Contribution Account. Notwithstanding the above, the Account of a Participant in
this Plan who was a participant in the prior SERP will include amounts transferred to this
Plan pursuant to Section 4.6.

	(b)	 	Affiliated Employer. Affiliated Employer means any corporation which is a member of
a controlled group of corporations (as defined in Code Section 414(b)) which includes the
Employer; any trade or business (whether or not incorporated) which is under common control
(as defined in Code Section 414(c)) with the Employer; any organization (whether or not
incorporated) which is a member of an affiliated service group (as defined in Code

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	 	 	Section 414(m)) which includes the Employer; and any other entity required to be aggregated
with the Employer pursuant to Regulations under Code Section 414(o).

	(c)	 	Allocation Date. The date as of which Matching Contributions and Fixed-Rate
Contributions and Excess Contributions are allocated to a Participant’s Account. Except as
otherwise provided herein, the Allocation Date for Matching Contributions shall be as soon as
administratively feasible following the end of the Plan Year, or such earlier date as shall be
determined by the Committee. The Allocation Date for Fixed-Rate Contributions shall be the
allocation date for fixed-rate contributions under the Qualified Plan.

	(d)	 	Applicable Code Provisions. Any and all limitations on contributions to a qualified
retirement plan set forth in Code Sections 401(a) (17), 402(g), 401(k), 401(m) and 415.

	(e)	 	Board of Directors. The Board of Directors or Managers of the Company or KAC, as
indicated.

	(f)	 	Cause. The Participant’s (1) engaging in fraud, embezzlement, gross misconduct or
any act of gross dishonesty with respect to the Employer, (2) habitual drug or alcohol use
which impairs the ability of the Participant to perform his duties with the Employer, (3)
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 Employer, or (4)
material breach of any written employment agreement or other agreement between the Employer
and the Participant, or of the Employer’s Code of Business Conduct, or failure by the
Participant to substantially perform his or her duties for the Employer which remains
uncorrected or reoccurs after written notice has been delivered to the Participant demanding
substantial performance and the Participant has had a reasonable opportunity to correct such
breach or failure to perform.

	(g)	 	Change in Control. The occurrence on or after the Operative Date 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 KAC;
provided, however, that:

	 	(A)	 	for purposes of this Section 2.1(g)(i), the following
acquisitions shall not constitute a Change in Control: (1) any
acquisition of Voting Stock of KAC directly from KAC (x) pursuant to
KAC’s POR or (y) that is approved by a majority of the Incumbent
Directors, (2) any acquisition of Voting Stock of KAC by KAC or any
Subsidiary, (3) any acquisition of Voting Stock of KAC by any employee
benefit plan (or related trust) sponsored or maintained by KAC or 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 KAC by any

2

 

	 	 	 	Person pursuant to a Business Combination that complies with clauses
(A), (B) and (C) of Section 2.1(g)(iii) below;
	 
	 	(B)	 	if any Person acquires Beneficial Ownership of 35% or more
of combined voting power of the then-outstanding Voting Stock of KAC as
a result of a transaction described in clause (A)(1) of Section
2.1(a)(i) and such Person thereafter becomes the beneficial owner of
any additional shares of Voting Stock of KAC representing 1% or more of
the then-outstanding Voting Stock of KAC, other than in an acquisition
directly from KAC pursuant to the POR, in an acquisition directly from
KAC 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 KAC 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 KAC as a result of a reduction in the number of shares of Voting
Stock of KAC outstanding unless and until such Person thereafter
becomes the beneficial owner of any additional shares of Voting Stock
of KAC representing 1% or more of the then-outstanding Voting Stock of
KAC, other than in an acquisition directly from KAC pursuant to the
POR, in an acquisition directly from KAC 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 KAC 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 KAC 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 KAC, 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
KAC 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

3

 

	 	 	 	an entity which as a result of such transaction owns KAC or all or
substantially all of KAC’s assets either directly or through one or more
subsidiaries), (B) no Person (other than KAC, such entity resulting from
such Business Combination, any employee benefit plan (or related trust)
sponsored or maintained by KAC, 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 KAC 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 KAC of a complete liquidation or
dissolution of KAC, except pursuant to a Business Combination that complies
with clauses (A), (B) and (C) of Section 2.1(a)(iii).

	(h)	 	Code. The Internal Revenue Code of 1986, as amended from time to time.
	 
	(i)	 	Committee. The persons appointed to administer the Plan in accordance with Article
VIII.
	 
	(j)	 	Company. Kaiser Aluminum Fabricated Products, LLC, a limited liability company
organized and existing under the laws of the State of Delaware, or its successor or
successors.
	 
	(k)	 	Compensation. For purposes of this Plan, Compensation shall have the same meaning as
set forth in the Qualified Plan but without regard to any limitation on Compensation set forth
in section 401(a)(17) of the Code.
	 
	(l)	 	Disability. A Participant shall be considered “Disabled” when he or she subject to 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.
	 
	(m)	 	Effective Date. The effective date of the Plan is May 1, 2005.

4

 

	(n)	 	Election Form. The document executed by an Eligible Employee pursuant to which the
Eligible Employee elects a form of payment after the Participant’s Separation from Service.
	 
	(o)	 	Eligible Employee. An Employee of the Employer who is a member of a select group of
management or an employee who in the sole and exclusive judgment of the Committee, because of
his or her position and responsibilities, contributes materially to the continued growth,
development and future business success of the Employer.
	 
	(p)	 	Employee. A person employed by the Employer.
	 
	(q)	 	Employer. The Company and any other participating company under the Qualified Plans.
	 
	(r)	 	ERISA. The Employee Retirement Income Security Act of 1974, as amended from time to
time.
	 
	(s)	 	Exchange Act. The Securities Exchange Act of 1934, as amended from time to time, or
any successor act thereto.
	 
	(t)	 	Fixed-Rate Contributions. The contributions, if any, that the Company may make to a
Participant’s Fixed-Rate Contribution Account in accordance with Section 4.2 of the Plan.
	 
	(u)	 	Fixed-Rate Contribution Account. The record of a Participant’s interest in the Plan
represented by the Fixed-Rate Contributions made on behalf of the Participant, with all
earnings thereon credited to such Fixed-Rate Contributions on behalf of the Participant and
all losses, expenses distributions and forfeitures thereon debited from such Fixed-Rate
Contributions.
	 
	(v)	 	Incumbent Directors. The individuals who, on Operative Date, are Directors of KAC
and any individual becoming a Director subsequent to the date hereof whose election,
nomination for election by KAC’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 KAC 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.
	 
	(w)	 	KAC. Kaiser Aluminum Corporation, a corporation organized and existing under the
laws of the State of Delaware, or its successor or successors.
	 
	(x)	 	Matching Contributions. The contribution, if any, that the Company may make to a
Participant’s Matching Contribution Account pursuant to Article 4.1 of the Plan.
	 
	(y)	 	Matching Contribution Account. The record of a Participant’s interest in the Plan
represented by the Matching Contributions made on behalf of the Participant, with all earnings
thereon credited to such Matching Contributions on behalf of the Participant and

5

 

	 	 	all losses, expenses and distributions thereon debited from such Matching Contributions.
A Participant’s Matching Contribution Account shall be one hundred percent (100%) vested at
all times.
	 
	(z)	 	Normal Retirement Age. A Participant’s sixty-second (62nd) birthday.
	 
	(aa)	 	Operative Date. July 6, 2006, the date the Plan was adopted by the Board of
Directors of the Company and KAC.
	 
	(bb)	 	Participant. An Eligible Employee who becomes a Participant in the Plan pursuant to
Article Ill of this Plan and any former Eligible Employee who is entitled to benefits under
the Plan.
	 
	(cc)	 	Person. 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).
	 
	(dd)	 	Plan. Kaiser Aluminum Fabricated Products Restoration Plan, set forth herein, as
amended and restated from time to time.
	 
	(ee)	 	Plan Year. The twelve (12) month period beginning on January 1st and ending on
December 31st.
	 
	(ff)	 	Points. The sum of a Participant’s age and the Participant’s whole years of Service
as determined under the Qualified Plan as of January 1, 2004.
	 
	(gg)	 	POR. The Second Amended Joint Plan of Reorganization of Kaiser Aluminum Corporation,
Kaiser Aluminum & Chemical Corporation and Certain of their Debtor Affiliates, as modified and
confirmed by entry of an order of the United States Bankruptcy Court for the District of
Delaware on February 6, 2006, which confirmation was affirmed by entry of an order of the
United States District Court for the District of Delaware on May 11, 2006.
	 
	(hh)	 	Prior SERP. The Kaiser Aluminum Supplemental Benefits Plan.
	 
	(ii)	 	Qualified Plan. The Kaiser Aluminum Savings and Investment Plan as in force and
effect on the Effective Date and as may be amended from time to time thereafter and as
applicable to the Participant.
	 
	(jj)	 	Rabbi Trust. Rabbi Trust means a grantor trust established by the Employer for
purposes of setting aside funds for the payment of benefits under the Plan. All assets of
such trust shall at all times be subject to the claims of the Employer’s general creditors and
no Participant shall have a claim to any assets of a Rabbi Trust established pursuant to this
Plan.
	 
	(kk)	 	Separation from Service. The termination of employment with the Employer and all
Affiliated Companies, whether voluntarily or involuntarily and as determined in accordance
with Code Section 409A and any guidance issued thereunder.

6

 

	(ll)	 	Service. An Eligible Employee’s service as defined in the Qualified Plan for
purposes of determining the Participant’s vested status under that plan (including service
prior to the Effective Date of this Plan).
	 
	(mm)	 	Trustee. Trustee means the individuals or institution appointed by the Employer in
an agreement establishing a Rabbi Trust and any successor trustee as may be named.
	 
	(nn)	 	Valuation Date. Each and every business day that the New York Stock Exchange is
open.
	 
	(oo)	 	Voting Stock. Securities entitled to vote generally in the election of directors (or
similar governing bodies).

2.2 Construction. The masculine gender, where appearing in the Plan, shall be deemed to
include the feminine gender, and the singular may include the plural and vice versa, unless the
context clearly indicates to the contrary.

2.3 Governing Law. The Plan shall be construed in accordance with and governed by the laws
of the State of Delaware to the extent not preempted by federal law.

ARTICLE III

PARTICIPATION AND PARTICIPANT ELECTIONS

3.1 Participation. The Committee shall, from time to time, select those Employees who
shall be Eligible Employees. Participation in the Plan shall be limited to Eligible Employees who
meet such other eligibility criteria as the Committee may establish from time to time.

An Eligible Employee selected for participation in this Plan in accordance with this Section 3.1
shall become a Participant on the first day of the month coinciding with or next following his or
her selection as a Participant; provided, however, that Participants who are determined by the
Committee to be eligible as of the Effective Date shall be eligible as of the Effective Date.

3.2 Participant Elections.

	(a)	 	An Employee who becomes eligible to participate in the Plan in accordance with Section 3.1
above may complete an Election Form setting forth the form of payment for receipt of the
vested portion of his or her Account following the Participant’s Separation from Service from
the options set forth:

	 	(1)	 	Single sum payment of the vested balance in the Participant’s Account on the
date specified by the Participant that is at least six (6) months following the
Participant’s Separation from Service.
	 
	 	(2)	 	Annual installments (between two (2) and ten (10) installments) as specified by
the Participant, commencing on the date that is specified by the Participant that is at
least six (6) months following the Participant’s Separation from Service, and
continuing on each anniversary of such Separation from Service.

7

 

Such Election Form once made shall be irrevocable, except as otherwise provided in (b) below. In
the event that the Participant fails to make an election as to the form of payment following the
Participant’s Separation from Service, the Participant’s vested Account balance shall be paid in a
single sum distribution as soon as administratively feasible after the date that is six (6) months
following the Participant’s Separation from Service.

	(b)	 	Notwithstanding any other provision of the Plan to the contrary, a Participant may change his
or her election as to the form of payment subject to the following:

	 	(1)	 	such change in election will not take effect until at least twelve (12) months
after the date the new election is made;
	 
	 	(2)	 	the election must be made at least twelve (12) months prior to the first
scheduled payment; and
	 
	 	(3)	 	the first payment with respect to which such election is made shall be deferred
for a period of not less than five (5) years from the date such payment would otherwise
be made.

3.3 Cessation of Participation. If any Participant does not incur a Separation from
Service but ceases to be an Eligible Employee then, during the period that such Participant is not
an Eligible Employee such Participant’s Account shall continue to be adjusted as provided in
Article V hereof.

ARTICLE IV

COMPANY CONTRIBUTIONS

4.1 Matching Contributions. If, during any year, a Participant’s matching employer
contributions under the Qualified Plan are limited by Applicable Code Provisions, the difference
between (i) the matching employer contributions that could have been made to the Qualified Plan but
for Applicable Code Provisions and (ii) the maximum matching employer contributions that could have
been made to a Participant’s matching contribution account under the Qualified Plan taking into
account all Applicable Code Provisions shall be credited or contributed to the Participant’s
Matching Contribution Account under this Plan. To be eligible to receive Matching Contributions
under this Plan, the Participant must be making salary deferral contributions to the Qualified Plan
as of the date the Participant first becomes a Participant in this Plan and as of the first day of
each Plan Year thereafter, but Matching Contributions under this Plan shall be determined as if the
Participant had elected to make the maximum permissible salary deferral contributions under the
Qualified Plan sufficient to receive the maximum matching employer contribution under the Qualified
Plan, without regard to Participant’s actual salary deferral elections. Such allocation shall be
made as of the Allocation Date; provided, however, in the event that any matching contributions to
the Qualified Plan on behalf of a Participant are determined to be excess contributions due to
Applicable Code Provisions, such allocation shall be made as of the date such excess contributions
in the Qualified Plan are forfeited by the Participant or as soon as administratively feasible
thereafter.

8

 

4.2 Fixed-Rate Contributions. The Company shall contribute or credit to a Participant’s
Fixed-Rate Contribution Account an amount determined in accordance with the schedule below based on
his or her Points.

	 	 	 	 	 
	Points	 	Percentage of Compensation
	Less than 39
	 	 	2	 
	30 to 49
	 	 	4	 
	50 to 59
	 	 	6	 
	60 to 69
	 	 	8	 
	70 or more
	 	 	10	 

The Fixed-Rate Contributions determined under this Section 4.2 shall be allocated to the Fixed-Rate
Contribution Accounts of Participants who are employed by an Employer on the last day of the Plan
Year, or who Separated from Service after reaching Normal Retirement Age or due to death or
Disability during the Plan Year. For purposes of the Fixed-Rate Contributions, only Compensation
in excess of the Code section 401(a)(17) limit shall be considered; provided, however, that to the
extent that fixed-rate contributions to the Qualified Plan on behalf of any Participant on
Compensation below the Code section 401(a)(17) limit cannot be made to such Qualified Plan due to
Applicable Code Provisions, such fixed rate contributions shall be made on behalf of such
Participant to his or her Fixed-Rate Contribution Account under this Plan.

4.3 Vesting.

	(a)	 	Except as provided in Section 4.3(b), a Participant shall be fully vested in his or her
Matching Contribution Account at all times regardless of Service. Except as provided in
Section 4.3(b), a Participant shall be vested in his or her Fixed-Rate Contribution Account in
accordance with the following schedule based on his or her years of service at the
Participant’s Separation from Service with all Affiliated Companies:

	 	 	 	 	 
	Years of Service	 	Vested Percentage
	Less than 5
	 	 	0	 
	5 or more
	 	 	100	 

	 	 	Except as provided in Section 4.3(b), a Participant shall also be fully vested in his or her
Fixed-Rate Contribution Account upon a Change of Control, death, Disability or upon reaching
Normal Retirement Age prior to a Separation from Service.

	(b)	 	Notwithstanding any other provisions of the Plan to the contrary, in the event a
Participant’s employment with the Employer is terminated for Cause, the Participant shall,
immediately upon such termination, forfeit the entire amount of his or her Matching
Contribution Account and Fixed-Rate Contribution Account, and the amount thus forfeited shall
no longer be part of the Participant’s Plan benefit.

4.4 Forfeitures. A Participant to whom the vesting schedule in Section 4.3 is applicable
shall, immediately upon Separation from Service, forfeit that portion of the amount of his or her
Fixed-Rate Contribution Account that is not fully vested, and the amount thus forfeited shall no
longer be part of the Participant’s Plan benefit. Any forfeited benefits under Section 4.3(b) and

9

 

Section 4.4 held in a Rabbi Trust shall revert to the Employer or may be held in the Rabbi Trust to
offset future Employer contributions.

4.5 Contributions for 2005. As soon as administratively feasible following the Operative
Date, the Company shall make Matching Contributions and Fixed-Rate Contributions for the 2005 Plan
Year.

4.6 Prior SERP Benefit. The lump-sum actuarial equivalent amount of the benefit accrued to
each participant under the Prior SERP as of May 1, 2005 will be transferred to this Plan as soon as
administratively feasible following the Operative Date and will be treated as a Matching
contribution for all purposes of the Plan other than vesting. The Prior SERP benefit, plus
accretions, shall be fully vested at all times.

ARTICLE V

MAINTENANCE OF PARTICIPANT ACCOUNTS

5.1 Establishment of Participant Accounts. Separate Accounts shall be established and
maintained for each Participant, and more than one such Account may be established and maintained
for a Participant, as deemed necessary by the Committee for administrative purposes. A
Participant’s Account shall be utilized solely as a device for the measurement and determination of
the amounts to be paid to the Participant pursuant to this Plan, and shall not constitute or be
treated as a trust fund of any kind unless set aside in a Rabbi Trust. The Committee shall
determine the balance of each Account, as of each Valuation Date, by adjusting the balance of such
Account as of each Valuation Date to reflect changes in the value of the hypothetical investment
benchmarks thereof, credits and debits pursuant to this Article V, and distributions pursuant to
Article VI hereof. All costs, charges, and expenses incurred in connection with the administration
of the Plan shall be paid by the Employer.

5.2 Valuation of Accounts. Each Participant’s Account is a bookkeeping account, the value
of which shall be based upon the performance of hypothetical investment benchmarks designated by
the Participant and selected by the Committee. Notwithstanding the foregoing, the terms of this
Plan place no obligation upon the Company to invest or to continue to invest any portion of the
amounts in the Account, to invest in or to continue to invest in any specific asset, to liquidate
any particular investment, or to apply in any specific manner the proceeds from the sale,
liquidation, or maturity of any particular investment. The Company assumes no risk of any decrease
in the value of any investments or the Participant’s Account, and the Company’s sole obligations
are to maintain the Participant’s Account and make payments to the Participant or the Participant’s
beneficiaries as herein provided.

5.3 Hypothetical Investment Benchmarks. Hypothetical Investment Benchmarks shall be
established under the Plan as follows.

	(a)	 	Investment Direction. Each Participant shall he entitled to direct the manner in
which the Participant’s Account will be deemed to be invested, by selecting among the
hypothetical investment benchmarks permitted under the Plan and specified by the Participant
in accordance with procedures established by the Committee. The hypothetical investment
benchmarks shall be those investment fund options specified by the Committee.

10

 

	 	 	Notwithstanding
anything to the contrary herein, earnings and losses based on a Participant’s hypothetical
investment benchmarks investment elections shall begin to accrue as of the date such
Participant’s Matching Contributions and/or Fixed-Rate
Contributions are credited to the Participant’s Account. A designation of hypothetical
investment benchmark shall continue in effect unless and until amended with the submission
of a new designation in accordance with Section 5.3(b) below. Each successive designation
of hypothetical investment benchmarks for a Participant’s Accounts may be applicable to
either future contributions to or the cumulative balance of the Participant’s Account, or to
both, at the election of the Participant.

	(b)	 	Transfers Among Hypothetical Investment Benchmarks. Amounts credited to a
Participant’s Account may be transferred among hypothetical investment benchmarks pursuant to
an allocation election which may be made according to procedures established by the Committee.
Such allocation election shall be effective as of the date determined in accordance with such
procedures.

	(c)	 	Continuation of Hypothetical Investment Benchmarks. Credits to a Participant’s
Account in accordance with this Article V shall continue until the Account balance is paid in
full to the Participant or the Participant’s beneficiary.

5.4 Statement of Participant Accounts. The Committee shall provide periodically to each
Participant a statement setting forth the balance of such Participant’s Account as of the end of
the most recently completed accounting period, in such form as the Committee deems desirable. Such
statements shall be provided to Participants no less frequently than annually.

ARTICLE VI

D1STRIBUTION OF BENEFITS

6.1 Distribution of Benefits. A Participant shall be entitled to a distribution of his
vested Account balance as of the date that is at least six (6) months following his Separation from
Service in accordance with his Election Form or as specified in Section 3.2.

ARTICLE VII

DEATH BENEFITS

7.1 Death Benefits. Any Plan benefits not distributed prior to the Participant’s death
shall be paid to the legal representative of the Participant’s estate, or if no such representative
is appointed, the Committee shall distribute such Plan benefits to the Participant’s surviving
spouse or if the Participant has no surviving spouse, to the Participant’s heirs at law. All
payments and distributions pursuant to this Section 7.1 shall be in single lump sums.

11

 

ARTICLE VIII

ADMINISTRATION

8.1 The Committee. Subject to the provisions of this Article VIII, the Plan shall be
administered by the Committee. The Company, acting through its Board of Directors or through a
committee appointed by the Board for this purpose (hereinafter “Board”) shall be empowered to
appoint and remove the Trustee and members of the Committee from time to time as it deems
necessary.

8.2 Powers and Duties of the Committee. The Committee shall:

	 	(i)	 	determine and designate from time to time the Eligible Employees;
	 
	 	(ii)	 	interpret the Plan;
	 
	 	(iii)	 	prescribe, amend, and rescind any rules and regulations necessary or
appropriate for the administration of the Plan;
	 
	 	(iv)	 	employ agents, attorneys, accountants or other persons (who also may he
employed by or represent the Company) for such purposes as the Committee considers
necessary or desirable in connection with its duties hereunder; and
	 
	 	(v)	 	make such factual or other determinations and take such other action as
authorized by this Plan or as it deems necessary or advisable. Any interpretation,
determination, or other action made or taken by the Committee shall, subject to Section
8.3 hereof be final, binding, and conclusive on all interested parties. The Committee
may, in its sole discretion, impose limitations, restrictions and conditions on the
Participants’ rights to receive benefits as set forth in the Participant’s Election
Form.

8.3 Nondiscriminatory Exercise Of Authority. Whenever, in the administration of the Plan,
any discretionary action by the Committee is required, the Committee shall exercise its authority
in a nondiscriminatory manner so that all persons similarly situated will receive substantially the
same treatment.

8.4 Participant as a Committee Member. In the event the Committee exercises any
discretionary authority under the Plan with respect to a Participant who is a member of the
Committee, such discretionary authority shall be exercised solely and exclusively by those members
of the Committee other than the Participant. In the event the remaining members of the Committee
cannot reach a majority conclusion, the Board of Directors of the Company shall appoint a temporary
substitute Committee member to exercise all the powers of a qualified Committee member concerning
the matter in which such Participant cannot so act or for which there is a deadlock.

8.5 Claims Procedure. The Committee shall make all determinations in its sole discretion
as to the right of any Participant to a benefit under the Plan. Any denial by the Committee of a
claim for benefits under the Plan by a Participant shall be stated in writing by the Committee and
delivered or mailed to the Participant within 90 days after receipt by the Committee of the
Participant’s claim, unless special circumstances require an extension of time for processing the

12

 

claim. If such an extension is required, written notice thereof shall be provided to the
Participant before the end of this 90-day period. The extension shall not exceed 90 days from the
end of the initial 90-day period. Such notice of denial of benefits under the Plan shall set forth
the specific reasons for the denial. The notice shall describe any additional information or
material necessary
to complete the claim, an explanation of why the information or material is necessary, and the
Plan’s claim review procedure. In addition, the Committee shall afford a reasonable opportunity to
any Participant whose claim for benefits has been denied to submit a written request that the
decision denying the claim be reviewed by the Committee. This appeal shall be filed within 60 days
after the receipt by the Participant of the notice informing him of the Committee’s denial of the
Participant’s claim. Failure to file such an appeal by the Participant shall result in the
forfeiture by such Participant of such right. The Committee shall notify the Participant of its
decision in writing within 60 days after receipt by the Committee of the Participant’s appeal,
unless an extension of time for processing the appeal is required. If such an extension is
required, written notice thereof shall be provided to the Participant before the end of this 60-day
period. The extension shall not exceed 60 days from the end of the initial 60-day period. The
decision of the Committee shall be final and binding on all parties.

ARTICLE IX

MISCELLANEOUS PROVISIONS

9.1 No Commitment as to Employment. The adoption and maintenance of this Plan shall not
enlarge or otherwise affect the terms and conditions of a Participant’s employment by the Employer,
and the Employer may terminate or otherwise modify the terms and conditions of employment of the
Participant as freely and with the same effect as if the Plan had not been established. The
Participant shall remain subject to discharge as if the Plan had never been adopted. The Plan does
not alter any employment-at-will relationship which may exist between the Employer and the
Participant.

9.2 Indemnification of Board of Directors, Committee and Others. No member of the
Company’s Board of Directors, the Board of Directors of KAC, or the board of directors of any of
the affiliates of the Company or KAC or the Committee, nor any of their respective officers or
employees acting on their behalf or on behalf of the Committee, shall be personally liable for any
action, determination, or interpretation taken or made in good faith with respect to the Plan, and
all members of the Company’s Board of Directors, the Boards of Directors of KAC, the boards of
directors of any of the affiliates of the Company or KAC or the Committee and each of their
respective officers or employees acting on their behalf shall, to the extent permitted by law and
the Company’s by-laws and other organizational documents, be fully indemnified and protected by the
Company in respect to any such action, determination or interpretation.

9.3 Amendment; Termination. The Plan and any Election Form may be altered or amended in
whole or in part, at any time and from time to time, by the Committee, in its sole discretion, upon
thirty (30) days’ prior written notice delivered to each Participant affected by any such action;
provided, however, that the Committee shall not alter or amend a Participant’s Election Form except
to the extent necessary to comply with the terms of the Plan or applicable law, including Section
409A of the Code. The Company reserves the right to terminate this Plan at any time.

13

 

No amendment or termination by the Company shall reduce the accrued benefits of a Participant,
except to the extent required to comply with applicable law.

If the Company terminates the Plan, the Company shall distribute to each Participant, within 90
days after the effective date of termination, such Participant’s Account, valued as of the date of
termination, but only in compliance with Section 409A of the Code. Notwithstanding any other
provisions of this Plan, if the Company terminates the Plan, the Company may, in its sole and
absolute discretion, make a single lump-sum payment to each Participant of the balance in the
Participant’s Account, but only in compliance with Section 409A of the Code.

9.4 Binding Effect. This Plan shall be binding upon and inure to the benefit of the
Employer, its successors and assigns, and the Participants and their beneficiaries, heirs, assigns
and personal representatives.

9.5 Construction of Plan. The captions used in the Plan are for convenience only and shall
not be construed in interpreting the Plan. Whenever the context so requires in this Plan, the
masculine shall include the feminine and neuter, and the singular shall also include the plural,
and conversely.

9.6 Validity of Plan. The invalidity or illegality of any provision of the Plan shall not
affect the legality or validity of any other part thereof.

9.7 Title To Assets. No Participant or beneficiary shall have any right to, or interest
in, any assets of the Employer upon termination of the Participant’s employment or otherwise,
except as provided from time to time under this Plan.

9.8 Expenses. Any expenses incurred by the Company, the Committee, or the Employer
relative to the adoption, implementation, interpretation and administration of the Plan shall be
borne by the Company.

9.9 Inalienability of Benefits. The right of any Participant or the participant’s
beneficiary to any benefit or payment under the Plan shall not be subject to alienation or
assignment, and to the fullest extent permitted by law, shall not be subject to attachment,
execution, garnishment, sequestration or other legal or equitable process. In the event a
Participant or the Participant’s beneficiary who is receiving or is entitled to receive benefits
under the Plan attempts to assign, transfer or dispose of such right, or if an attempt is made to
subject said right to such process, such assignment, transfer or disposition shall be null and
void. The Plan shall not make payments to an alternate payee pursuant to a domestic relations
order, even if such order qualifies as a “qualified domestic relations order” under Section 414(p)
of the Code.

9.10 Payment of Benefits. Whenever any benefit which shall be payable under the Election
Form is to be paid to or for the benefit of any person who is then a minor or determined to be
incompetent by qualified medical advice, the Company need not require the appointment of a guardian
or custodian, but shall be authorized to cause the same to be paid over to the person having
custody of such minor or incompetent, or to cause the same to be paid to such minor or incompetent
without the intervention of a guardian or custodian, or to cause the same to be paid to a legal
guardian or custodian of such minor or incompetent if one has been appointed or to cause the same
to be used for the benefit of such minor or incompetent.

14

 

ARTICLE X

SOURCE OF PAYMENT OF BENEFITS

10.1 Source of Payment of Benefits. The Plan is a nonqualified, unfunded, deferred
compensation plan. Therefore, all benefits owing under the Plan shall be paid out of the
Employer’s general corporate funds, which are subject to the claims of creditors, or out of a Rabbi
Trust that the Employer may establish or authorize; provided that all assets paid into any such
trust shall at all times before actual payment to a Participant remain subject to the claims of
general creditors of the Employer. Neither the Participant nor a Participant’s beneficiary shall
have any right, title or interest whatever in or to, or any claim, preferred or otherwise, in or
to, any particular assets of the Employer as a result of participation in the Plan, or any trust
that the Employer may establish to aid in providing the payments described in the Plan. Nothing
contained in the Plan, and no action taken pursuant to its provisions, shall create or be construed
to create a trust or a fiduciary relationship of any kind between the Employer and a Participant.
No Participant shall acquire any interest greater than that of an unsecured creditor in any assets
of the Employer or in any trust that the Employer may establish for the purposes of paying benefits
hereunder.

The Company may establish a trust and fund the trust for the purpose of paying benefits owing under
the Plan. However, in the absence of action by the Company, nothing herein shall be construed to
require the creation or funding of a trust by the Company or any Employer for the purpose of paying
benefits owing under the Plan.

IN WITNESS WHEREOF, and as conclusive evidence of the adoption of the foregoing instrument
comprising the Kaiser Aluminum Restoration Plan, KAISER ALUMINUM FABRICATED PRODUCTS, LLC, as the
Employer, has caused this instrument to be duly executed by its proper officers this 6th day of
July, 2006, to be effective as of the Effective Date.

ATTEST: KAISER ALUMINUM FABRICATED PRODUCTS, LLC

	 	 	 	 	 	 	 
	 

	 	By 
	 	/s/ John M. Donnan	 	 
	 

	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Title: 	Vice
President and Secretary	 	 
	 

	 	 	 	 	 	 

15

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