2015 STI Umbrella Plan Performance Goal and Bonus Pool Allocation Agreement – Kaiser Aluminum

Summary

This agreement outlines the 2015 Short-Term Incentive (STI) Umbrella Plan for Kaiser Aluminum, setting a performance goal of $5 million in net cash from operating activities. If this goal is met, a bonus pool equal to 15% of the cash flow will be distributed among designated executives, with specific percentages allocated to each. The plan limits each executive’s annual bonus to $5 million and clarifies that it does not increase or duplicate benefits under other company agreements.

EX-10.6 2 kaluexhibit106-3312015x10xq.htm 2015 STI UMBRELLA PLAN KALU Exhibit 10.6 - 3.31.2015 - 10-Q

Exhibit 10.6

2015 STI Umbrella Plan

2015 Performance Goal and Bonus Pool

The performance goal for the STI Performance Period shall be $5.0 million in Net cash provided by operating activities, as reported in the Company’s Statements of Consolidated Cash Flows (“Cash Flow”). The bonus pool, representing the amount available for payment of bonuses, shall equal 15% of Cash Flow.

Allocation of Bonus Pool to Executives



Executive Name	Executive Title	Percent of Pool Allocated to Executive¹
Jack A. Hockema	Chief Executive Officer	39.8943%
Keith A. Harvey	EVP - Fabricated Products	22.4571%
John M. Donnan	EVP - Legal, Compliance and Human Resources	18.0317%
John Barneson	SVP - Corporate Development	10.8322%
[Other Designated Participant]	[Designated Participant Title]	8.7847%

¹Subject to an aggregate maximum bonus opportunity per executive of $5.0 million per calendar year, pursuant to the Equity Incentive Plan.

Administrative Provisions

The 2015 STI Umbrella Plan only applies to the calculation and award of incentive awards, if any. There will be no duplication of benefits created by the 2015 STI Umbrella Plan.

The 2015 STI Umbrella Plan will not increase any benefits that may be payable under any severance and/or change in control agreements