{"id":42309,"date":"2015-09-17T11:25:58","date_gmt":"2015-09-17T16:25:58","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-legal\/contracts\/uncategorized\/first-supplemental-agreement-alcoa.html"},"modified":"2015-09-17T11:25:58","modified_gmt":"2015-09-17T16:25:58","slug":"first-supplemental-agreement-alcoa","status":"publish","type":"corporate_contracts","link":"https:\/\/corporate.findlaw.com\/contracts\/operations\/first-supplemental-agreement-alcoa.html","title":{"rendered":"First Supplemental Agreement – Alcoa"},"content":{"rendered":"

FIRST SUPPLEMENTAL AGREEMENT <\/strong><\/p>\n

to the Aluminium Project Framework <\/strong><\/p>\n

Shareholders Agreement <\/strong><\/p>\n

dated 3\/1\/1431H, corresponding to 20 December
\n<\/strong><\/p>\n

2009 G <\/strong><\/p>\n

SAUDI ARABIAN MINING COMPANY (MA’ADEN) <\/strong><\/p>\n

and<\/p>\n

ALCOA INC. <\/strong><\/p>\n<\/p>\n

\n

FIRST SUPPLEMENTAL AGREEMENT <\/strong><\/p>\n

THIS FIRST SUPPLEMENTAL AGREEMENT <\/strong>(hereinafter referred to
\nas the “Supplemental Agreement<\/strong>“), is made and entered into on
\n14\/4\/1431H, corresponding to 30\/3\/2010G, by and between:<\/p>\n<\/p>\n\n\n\n
\n

(1)<\/p>\n<\/td>\n

SAUDI ARABIAN MINING COMPANY (MA’ADEN)<\/strong><\/p>\n

, a company organized under the laws and regulations of the Kingdom of Saudi
\nArabia with commercial registration No.1010164391, having its head office and
\naddress at PO Box 68861, Riyadh 11537, Kingdom of Saudi Arabia (together with
\nits legal successors and permitted assigns, hereinafter referred to as
\n“Ma’aden<\/strong>“); and<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n
\n

(2)<\/p>\n<\/td>\n

ALCOA INC.<\/strong><\/p>\n

, a corporation under the laws of the Commonwealth of Pennsylvania, USA,
\nwhose principal place of business is at 390 Park Avenue, New York, NY 1022, USA,
\n(together with its legal successors and permitted assigns, hereinafter referred
\nto as “Alcoa<\/strong>“),<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

(hereinafter jointly referred to as the “Parties<\/strong>” or
\nindividually as a “Party<\/strong>“).<\/p>\n

RECITALS: <\/strong><\/p>\n<\/p>\n\n\n\n
\n

(A)<\/p>\n<\/td>\n

\n

The Parties entered into the Original Agreement on 3\/1\/1431H
\ncorresponding to the 20th<\/sup> day of December 2009 G pursuant to which
\nthe Parties desired to enter into the Joint Venture in respect of the Project
\n(as such terms are defined in the Original Agreement).<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n
\n

(B)<\/p>\n<\/td>\n

\n

The Parties entered into a Signing Side Letter also on 3\/1\/1431H
\ncorresponding to the 20th<\/sup> day of December 2009 G clarifying certain
\nmatters in the Original Agreement.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n
\n

(C)<\/p>\n<\/td>\n

\n

The Parties have agreed to amend the Original Agreement by entering into this
\nSupplemental Agreement.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

IT IS AGREED as follows:<\/p>\n<\/p>\n\n\n\n
1.<\/strong><\/td>\nINTERPRETATION <\/strong><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n
\n

1.1<\/p>\n<\/td>\n

\n

Definitions<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

In this Supplemental Agreement, the following words and expressions shall
\nhave the following meanings:<\/p>\n

“Entire Agreement<\/strong>” means the Original Agreement as amended
\nby this Supplemental Agreement;<\/p>\n

“Original Agreement<\/strong>” means the Aluminium Project Framework
\nShareholders Agreement that was entered into on 3\/1\/1431H corresponding to the
\n20th<\/sup> day of December 2009 G, between the Parties, as amended by the
\nSigning Side Letter of even date;<\/p>\n

“Parties<\/strong>” means the signatories to this Supplemental
\nAgreement; and<\/p>\n

“Supplemental Agreement”<\/strong> means this supplemental agreement.\n<\/p>\n<\/p>\n\n\n\n
\n

1.2<\/p>\n<\/td>\n

\n

One agreement<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

The Original Agreement, together with this Supplemental Agreement, shall,
\nwith effect on and from the date hereof, be read and construed as one document
\nand references in the Original Agreement to “this Agreement” shall from the date
\nhereof (but not for any purposes prior to the date hereof) incorporate
\nreferences to this Supplemental Agreement.<\/p>\n<\/p>\n

2<\/p>\n<\/p>\n

\n\n\n\n
\n

1.3<\/p>\n<\/td>\n

\n

Terms defined<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

In this Supplemental Agreement, unless the context requires otherwise, terms
\ndefined in the Original Agreement and not otherwise defined herein, shall have
\nthe same meanings in this Supplemental Agreement. The principles of
\ninterpretation in Clause 1.2<\/u> of the Original Agreement shall also apply
\nto this Supplemental Agreement.<\/p>\n<\/p>\n\n\n\n
\n

1.4<\/p>\n<\/td>\n

\n

Provisions incorporated by reference<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

The provisions of Clauses 1.3<\/u>, 19 – 26<\/u> (inclusive) of the
\nOriginal Agreement apply to this Supplemental Agreement as though incorporated
\nherein.<\/p>\n<\/p>\n\n\n\n
\n

1.5<\/p>\n<\/td>\n

\n

Immediate effect<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

The amendments provided for in this Supplemental Agreement shall, save where
\nexpressly provided to the contrary, take effect forthwith upon execution of this
\nSupplemental Agreement by the Parties.<\/p>\n<\/p>\n\n\n\n
2.<\/strong><\/td>\nAMENDMENTS TO THE ORIGINAL AGREEMENT <\/strong><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n
\n

2.1<\/p>\n<\/td>\n

\n

Amended wording<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Clause 4.1<\/u> of the Original Agreement shall be deleted and replaced
\nwith the following new Clause 4.1<\/u>:<\/p>\n<\/p>\n\n\n\n
<\/td>\n\n

“4.1<\/p>\n<\/td>\n

Share Capital as of Incorporation<\/u><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n
<\/td>\n\n

(a)<\/p>\n<\/td>\n

\n

The Parties acknowledge that each Company shall be incorporated with an
\ninitial Share Capital, and the ownership of such shares as at the date of
\nincorporation shall be, as set out in the tables below:<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n
<\/td>\n\n

(i)<\/p>\n<\/td>\n

\n

In the case of the Mining & Refining Company:<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n\n\n\n\n
<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
Shareholder<\/u><\/strong><\/td>\n<\/td>\nShareholder<\/strong>
\nPercentage<\/strong><\/td>\n		<\/td>\nNumber of Shares<\/strong><\/td>\n<\/td>\nPaid In Capital<\/strong><\/td>\n<\/tr>\n
\n

Ma’aden<\/p>\n<\/td>\n

<\/td>\n\n

74.9%<\/p>\n<\/td>\n

<\/td>\n\n

381,990<\/p>\n<\/td>\n

<\/td>\n\n

SR 3,819,900,000<\/p>\n<\/td>\n<\/tr>\n

\n

Alcoa<\/p>\n<\/td>\n

<\/td>\n\n

25.1%<\/p>\n<\/td>\n

<\/td>\n\n

128,010<\/p>\n<\/td>\n

<\/td>\n\n

SR 1,280,100,000<\/p>\n<\/td>\n<\/tr>\n

\n

TOTAL<\/strong><\/p>\n<\/td>\n

<\/td>\n\n

100%<\/p>\n<\/td>\n

<\/td>\n\n

510,000<\/p>\n<\/td>\n

<\/td>\n\n

SR 5,100,000,000<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n
<\/td>\n\n

(ii)<\/p>\n<\/td>\n

\n

In the case of the Smelting Company:<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n\n\n\n\n
<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
Shareholder<\/u><\/strong><\/td>\n<\/td>\nShareholder Percentage<\/strong><\/td>\n<\/td>\nNumber of Shares<\/strong><\/td>\n<\/td>\nPaid In Capital<\/strong><\/td>\n<\/tr>\n
\n

Ma’aden<\/p>\n<\/td>\n

<\/td>\n\n

74.9%<\/p>\n<\/td>\n

<\/td>\n\n

572,985<\/p>\n<\/td>\n

<\/td>\n\n

SR 5,729,850,000<\/p>\n<\/td>\n<\/tr>\n

\n

Alcoa<\/p>\n<\/td>\n

<\/td>\n\n

25.1%<\/p>\n<\/td>\n

<\/td>\n\n

192,015<\/p>\n<\/td>\n

<\/td>\n\n

SR 1,920,150,000<\/p>\n<\/td>\n<\/tr>\n

\n

TOTAL<\/strong><\/p>\n<\/td>\n

<\/td>\n\n

100%<\/p>\n<\/td>\n

<\/td>\n\n

765,000<\/p>\n<\/td>\n

<\/td>\n\n

SR 7,650,000,000<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

3<\/p>\n<\/p>\n

\n

In the case of the Rolling Company:<\/p>\n<\/p>\n\n\n\n\n\n\n\n
<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
Shareholder<\/u><\/strong><\/td>\n<\/td>\nShareholder<\/strong>
\nPercentage<\/strong><\/td>\n		<\/td>\nNumber of Shares<\/strong><\/td>\n<\/td>\nPaid In Capital<\/strong><\/td>\n<\/tr>\n
\n

Ma’aden<\/p>\n<\/td>\n

<\/td>\n\n

74.9%<\/p>\n<\/td>\n

<\/td>\n\n

292,110<\/p>\n<\/td>\n

<\/td>\n\n

SR 2,921,100,000<\/p>\n<\/td>\n<\/tr>\n

\n

Alcoa<\/p>\n<\/td>\n

<\/td>\n\n

25.1%<\/p>\n<\/td>\n

<\/td>\n\n

97,890<\/p>\n<\/td>\n

<\/td>\n\n

SR 978,900,000<\/p>\n<\/td>\n<\/tr>\n

\n

TOTAL<\/strong><\/p>\n<\/td>\n

<\/td>\n\n

100%<\/p>\n<\/td>\n

<\/td>\n\n

390,000<\/p>\n<\/td>\n

<\/td>\n\n

SR 3,900,000,000<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n
<\/td>\n\n

(b)<\/p>\n<\/td>\n

\n

Each Share shall entitle the holder thereof to one (1) vote on each matter
\ncoming before the Shareholders.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n
<\/td>\n\n

(c)<\/p>\n<\/td>\n

\n

Notwithstanding anything to the contrary contained in the Articles of
\nAssociation of each Company, each Share shall entitle the holder thereof to
\nreceive Share Distributions in accordance with Clause 11 <\/u>of this
\nAgreement.”<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n
\n

2.2<\/p>\n<\/td>\n

\n

Amendment to Clause 13 <\/u><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Notwithstanding Clause 13.1(b)<\/u>, the Parties agree that, in view of the
\nchanges to the proposed initial Shareholder Percentages, the amounts payable by
\nAlcoa in respect of the Entry Payment shall be confirmed and the Agreed
\nPre-Incorporation Costs shall be modified as follows:<\/p>\n<\/p>\n\n\n\n
<\/td>\n\n

(i)<\/p>\n<\/td>\n

\n

the Entry Payment shall comprise an amount of eighty million US Dollars
\n(US$80 million) which was paid by Alcoa to Ma’aden on 7\/1\/1431H, corresponding
\nto 24 December 2009 G; and<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n
<\/td>\n\n

(ii)<\/p>\n<\/td>\n

\n

the amount of Alcoa’s pro rata share of the Agreed Pre-Incorporation Costs
\nincurred by Ma’aden prior to the Calculation Date, based on its Shareholder
\nPercentage set out in Clause 4.1<\/u> shall comprise thirty-four million US
\nDollars (US$34 million) which shall be due and payable by Alcoa to Ma’aden on
\n1 August 2010, being the Deferred Payment Date (as defined in the Signing Side
\nLetter).<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n
\n

2.3<\/p>\n<\/td>\n

\n

Amended wording<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Clause 17.1<\/u> of the Original Agreement shall be deleted and replaced
\nwith the following new Clause 17.1<\/u>:<\/p>\n<\/p>\n\n\n\n
<\/td>\n\n

“17.1<\/p>\n<\/td>\n

General Prohibitions<\/u><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n
<\/td>\n\n

(a)<\/p>\n<\/td>\n

\n

Unless permitted by this Clause 17<\/u> or with the prior written consent
\nof Alcoa, neither Ma’aden nor any Affiliate of Ma’aden shall do, or agree to do,
\nany of the following:<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n
<\/td>\n\n

(i)<\/p>\n<\/td>\n

\n

sell, transfer or otherwise dispose of, any of its Transferable Interests or
\nany interest in any of its Transferable Interests;<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n
<\/td>\n\n

(ii)<\/p>\n<\/td>\n

\n

encumber any of its Transferable Interests or any interest in any of its
\nTransferable Interests;<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n
<\/td>\n\n

(iii)<\/p>\n<\/td>\n

\n

enter into any agreement or arrangement in respect of the votes or other
\nrights attached to any of its Transferable Interests; or<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n
<\/td>\n\n

(iv)<\/p>\n<\/td>\n

\n

enter into any agreement or arrangement to do any of the foregoing.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

4<\/p>\n<\/p>\n

\n\n\n\n
<\/td>\n\n

(b)<\/p>\n<\/td>\n

\n

The Alcoa Affiliate that will hold Alcoa’s Transferable Interests in the
\nSmelting Company and the Rolling Company shall be directly or indirectly wholly
\nlegally and beneficially owned by Alcoa, and the Alcoa Affiliate that will hold
\nits Transferable Interests in the Mining & Refining Company shall be
\ndirectly or indirectly wholly legally and beneficially owned 60% (or more) by
\nAlcoa, and 40% by Alumina Limited, a company listed on the Australian Stock
\nExchange with registered number ABN 85 004 820 419 (“Alumina
\nLimited<\/strong>“), subject to the following provisions of this sub clause (b).
\nUnless permitted by Clauses 14 or 15<\/u> or this Clause 17<\/u> but subject
\nto Clause 17.1(c)<\/u> below, Alcoa shall not and shall procure that its
\nAffiliates shall not, (notwithstanding the provisions of Clause 17.2<\/u>)
\nwithout the prior written consent of Ma’aden do, or agree to do, any of the
\nfollowing:<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n
<\/td>\n\n

(i)<\/p>\n<\/td>\n

\n

enter into any transaction or series of transactions which have the aim or
\neffect of directly or indirectly selling, transferring or otherwise disposing of
\nlegal and\/or beneficial interests in relation to the Transferable Interests to
\nany person who is not directly or indirectly wholly legally and beneficially
\nowned by Alcoa (or in the case of any Transferable Interests in the Mining & Refining Company 60% (or more) by Alcoa and 40% by Alumina Limited);<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n
<\/td>\n\n

(ii)<\/p>\n<\/td>\n

\n

enter into any agreement or arrangement in respect of the votes or other
\nrights attached to any of its Transferable Interests to any person who is not
\ndirectly or indirectly wholly legally and beneficially owned by Alcoa (or in the
\ncase of any Transferable Interests in the Mining & Refining Company 60% (or
\nmore) by Alcoa and 40% by Alumina Limited);<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n
<\/td>\n\n

(iii)<\/p>\n<\/td>\n

\n

enter into any agreement or arrangement to encumber any of its Transferable
\nInterests or any interest in any of its Transferable Interests to any person who
\nis not directly or indirectly wholly legally and beneficially owned by Alcoa (or
\nin the case of any Transferable Interests in the Mining & Refining Company
\n60% (or more) by Alcoa and 40% by Alumina Limited ); or<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n
<\/td>\n\n

(iv)<\/p>\n<\/td>\n

\n

enter into any agreement or arrangement to do any of the foregoing.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n
<\/td>\n\n

(c)<\/p>\n<\/td>\n

\n

Notwithstanding the above, Alcoa shall, provided it has supplied Ma’aden in
\nwriting with sufficient information to identify the parties involved and all
\nrelevant material terms of such transaction thirty (30) days in advance of the
\nconsummation by Alcoa of any such transaction, be permitted to enter into a
\nsignificant strategic joint venture or similar transaction involving all or a
\nsubstantial portion of Alcoa’s interests in the relevant business of bauxite
\nmining and alumina refining, aluminium smelting and\/or aluminium rolling, as the
\ncase may be, provided that (i) the proportion of the revenues properly
\nattributable to Alcoa’s Transferable Interests in the Project is not material in
\ncomparison to the total revenues in respect of all of Alcoa’s operations which
\nare included within such transaction in the calendar year prior to such
\ntransaction; and (ii) such transaction is entered into only with a strategic
\npartner rather than financial investors. For the purposes of this clause: a
\n“strategic partner” is a person and\/or group of persons who are, immediately
\nprior to the date of any such transaction with Alcoa, engaged in the business of
\nowning and operating bauxite mines and alumina refineries, aluminium smelters
\nand\/or aluminium rolling mills, as the case may be, in each case, including
\noperations outside the Kingdom: and the proportion of revenues shall not be
\nconsidered to be material if it is less than the initial Shareholder Percentage
\nof Alcoa.”<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

5<\/p>\n<\/p>\n

\n\n\n\n
\n

2.4<\/p>\n<\/td>\n

\n

New clauses<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

New Clauses 17.11<\/u>, 17.12<\/u> and 17.13<\/u> shall be added to the
\nOriginal Agreement as follows:-<\/p>\n<\/p>\n\n\n\n
<\/td>\n\n

“17.11 <\/p>\n<\/td>\n

\n

Put And Call Option<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n
<\/td>\n\n

(a)<\/p>\n<\/td>\n

\n

Alcoa hereby grants to Ma’aden an option (the “Put Option<\/strong>“)
\nto require Alcoa to purchase from Ma’aden (i) such number of Shares as at the
\nrelevant time constitutes 14.9% of the total issued Shares of each of the
\nCompanies; and (ii) 14.9% of the total aggregate Shareholder Loans provided to
\neach of the Companies (the “Option Interests<\/strong>“), on the terms
\nset out in this Clause 17<\/u>. Ma’aden hereby grants to Alcoa an option (the
\n“Call Option”<\/strong>) to require Ma’aden to sell to Alcoa all of the
\nOption Interests on the terms set out in this Clause 17<\/u>.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n
<\/td>\n\n

(b)<\/p>\n<\/td>\n

\n

The Put Option may only be exercised by Ma’aden and the Call Option may only
\nbe exercised by Alcoa within a period of six (6) months from the date falling
\nfive (5) years after the Commercial Production Date (the “Option
\nPeriod<\/strong>“) and shall be exercised simultaneously for all of the
\nCompanies. If the Put Option or the Call Option is not exercised during the
\nOption Period, it shall lapse.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n
<\/td>\n\n

(c)<\/p>\n<\/td>\n

\n

The Put Option shall be exercised by Ma’aden giving Alcoa written notice (the
\n“Put Option Notice<\/strong>“) which shall include:<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n
<\/td>\n\n

(i)<\/p>\n<\/td>\n

\n

a statement to the effect that Ma’aden is exercising the Put Option; and<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n
<\/td>\n\n

(ii)<\/p>\n<\/td>\n

\n

a signature by or on behalf of Ma’aden.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n
<\/td>\n\n

(d)<\/p>\n<\/td>\n

\n

The Call Option shall be exercised by Alcoa giving Ma’aden written notice
\n(the “Call Option Notice<\/strong>“) which shall include:<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n
<\/td>\n\n

(i)<\/p>\n<\/td>\n

\n

a statement to the effect that Alcoa is exercising the Call Option; and<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n
<\/td>\n\n

(ii)<\/p>\n<\/td>\n

\n

a signature by or on behalf of Alcoa.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n
<\/td>\n\n

(e)<\/p>\n<\/td>\n

\n

The Put Option and the Call Option may be exercised only in respect of all of
\nthe Option Interests.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n
<\/td>\n\n

(f)<\/p>\n<\/td>\n

\n

All Distributions resolved or declared to be paid or made by the relevant
\nCompany in respect of the Option Interests by reference to a record date which
\nfalls on or before the date on which completion of the sale of the Option
\nInterests under the Put Option (the “Put Option Completion
\nDate<\/strong>“) or the Call Option (the “Call Option Completion
\nDate<\/strong>“) (as the case may be) occurs shall belong to, and be payable to,
\nMa’aden. For the purposes of this Clause 17.11<\/u>, “completion” shall be the
\ndate when the Parties sign before a notary the required shareholders resolutions
\nauthorising the amendment of each of the Companies’ articles of association to
\nreflect the transfer.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n
<\/td>\n\n

(g)<\/p>\n<\/td>\n

\n

The consideration payable by Alcoa for the Option Interests (the
\n“Option Consideration<\/strong>“) shall be calculated in accordance with
\nthe provisions of Clause 17.12<\/u>.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n
<\/td>\n\n

(h)<\/p>\n<\/td>\n

\n

The Parties shall use their respective reasonable endeavours to:<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n
<\/td>\n\n

(i)<\/p>\n<\/td>\n

\n

procure that the Option Consideration shall be finally determined as quickly
\nas possible consistent with the provisions of Clause 17.12<\/u>; and<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n
<\/td>\n\n

(ii)<\/p>\n<\/td>\n

\n

no later than twelve (12) months following the determination of
\nthe Option Consideration, take all such action as may reasonably be required to
\ngive<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

6<\/p>\n<\/p>\n

\n\n\n\n
<\/td>\n\n

effect to any transfer of the Option Interests pursuant to this
\nClause 17.11<\/u>, including cooperating in obtaining approvals required from
\nall relevant Governmental Authorities.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n
<\/td>\n\n

(i)<\/p>\n<\/td>\n

\n

On the Put Option Completion Date or Call Option Completion Date (as
\napplicable), Alcoa shall pay or procure the payment of the Option Consideration
\nto Ma’aden in cash to a bank account, the details of which Ma’aden shall provide
\nin writing to Alcoa not less than three (3) Business Days prior to the Put
\nOption Completion Date or the Call Option Completion Date (as applicable).<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n
<\/td>\n\n

17.12<\/p>\n<\/td>\n

\n

Put and Call Option Valuations<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n
<\/td>\n\n

(a)<\/p>\n<\/td>\n

\n

Option Consideration<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

The Parties shall act in good faith to determine the Option Consideration
\nand, in doing so, shall follow the approach and apply the valuation methods set
\nout below.<\/p>\n<\/p>\n\n\n\n
<\/td>\n\n

(b)<\/p>\n<\/td>\n

\n

Valuation Panel<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

In the event that the Parties are unable to agree the Option Consideration
\nwithin fifteen (15) days of the date of the Call Option Notice or the Put Option
\nNotice (as the case may be), the Parties shall refer the valuation to a panel of
\nindependent experts with appropriate experience in the aluminium industry (each
\na “Valuer<\/strong>“). The panel shall consist of three Valuers, one of
\nwhom shall be appointed by each Party and the third of whom, who shall act as
\nchairman of the panel, shall be jointly nominated by the two Valuers nominated
\nby the Parties. Failing agreement as to the identity of the third Valuer within
\nfive (5) Business Days of being required to do so, such third Valuer shall be
\nnominated by the International Centre for Expertise in accordance with the
\nprovisions for the appointment of experts under the Rules of Expertise of the
\nInternational Chamber of Commerce (who shall be instructed to nominate only a
\nValuer experienced in valuing rolling mills, aluminium smelters, alumina
\nrefineries, bauxite mines and\/or associated facilities, and shall have
\nexperience in, and relevant knowledge of the Kingdom and the GCC region).<\/p>\n<\/p>\n\n\n\n
<\/td>\n\n

(c)<\/p>\n<\/td>\n

\n

Submission of Valuation<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

The Valuers shall be instructed to collectively submit a single Option
\nConsideration valuation to the Parties within sixty (60) days of the appointment
\nof the third Valuer (or such longer time as the Parties may agree) and such
\nvaluation shall be final and binding upon the Parties. The Option Consideration
\nshall be determined on a fair value basis in accordance with Clause
\n17.12(d)<\/u> below.<\/p>\n<\/p>\n\n\n\n
<\/td>\n\n

(d)<\/p>\n<\/td>\n

\n

Valuation Approach<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

In valuing the Transferable Interests which are the subject of the Put Option
\nor Call Option, as the case may be, the Valuers:<\/p>\n<\/p>\n\n\n\n
<\/td>\n\n

(i)<\/p>\n<\/td>\n

\n

shall prepare the valuation by using the discounted cashflows methodology
\nbased on the net present value of cashflows attributable to the Option Interests
\nwhich take into account the terms of the Project Agreements (including, for the
\navoidance of doubt, the Gas Allocation Letter, the Gas Supply Agreement to be
\nentered into with Saudi Aramco, the Energy Conversion Agreement entered into
\nbetween Ma’aden and SWCC dated 10 October 2009 and other agreements with
\nGovernment or publicly held entities) over the remaining life of the Project;\n<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

7<\/p>\n<\/p>\n

\n\n\n\n
<\/td>\n\n

(ii)<\/p>\n<\/td>\n

\n

shall consider cashflows from Expansions, taking into account any agreed
\nExpansions;<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n
<\/td>\n\n

(iii)<\/p>\n<\/td>\n

\n

shall use an appropriate discount rate to compute the net present value,
\ntaking into account customary factors such as the industry, the geography, the
\nParties’ familiarity with the operations, and other relevant factors;<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n
<\/td>\n\n

(iv)<\/p>\n<\/td>\n

\n

shall not apply any discount to the Option Interests as a result of the
\nOption Interests not conferring Control over any Company or not conferring any
\nminority protection rights;<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n
<\/td>\n\n

(v)<\/p>\n<\/td>\n

\n

may consult persons engaged in the marketing of aluminium who, in the
\nValuers’ opinion, are experts in the making of price forecasts on a regular
\nbasis;<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n
<\/td>\n\n

(vi)<\/p>\n<\/td>\n

\n

may consult any other experts as the Valuers think fit;<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n
<\/td>\n\n

(vii)<\/p>\n<\/td>\n

\n

shall be entitled to rely in good faith upon the opinions of any experts so
\nconsulted; and<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n
<\/td>\n\n

(viii)<\/p>\n<\/td>\n

\n

shall consider any submissions as to the value of the Option Consideration
\nwhich may be made to the Valuers by a Party within thirty (30) days of receipt
\nby the Party of notice of the appointment of the third Valuer.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n
<\/td>\n\n

17.13<\/p>\n<\/td>\n

\n

Notwithstanding Clauses 17.1(a)<\/u>, 17.3<\/u> and 17.4<\/u>, Ma’aden
\nshall be entitled to sell, transfer and assign to one or more Saudi public
\ncompanies or public funds or any combination of the same consistent with the
\nprovisions of Clause 17.8<\/u> (and may procure the sale, transfer and
\nassignment by any of its Affiliates to the same), its rights, title and interest
\nin and to Transferable Interests held by Ma’aden of up to 14.9% of the aggregate
\nof the Transferable Interests of a Company. Such sale may take place at any time
\nprior to the Put Option or Call Option being exercised by Ma’aden or Alcoa
\nrespectively pursuant to Clause 17.11<\/u>. Ma’aden shall give not less than
\nsixty (60) days’ prior written notice to Alcoa of such a proposed transfer
\nincluding details of the proposed Saudi public companies and \/or public funds
\n(the “Transferees<\/strong>“). Ma’aden shall procure that, as a condition
\nof such transfer, the Transferees shall agree to be bound by all the terms of
\nthis Agreement and shall execute an Adherence Agreement, provided that the
\nTransferees further agree that Ma’aden shall represent the Transferees in all
\ndealings with Alcoa that arise in connection with the exercise of the Put Option
\nor Call Option, as the case may be. The Parties agree that, for the purposes of
\ndetermining Ma’aden’s Shareholder Percentage in connection with its rights and
\nobligations under Clause 5.4<\/u> (in respect of the Aluminium offtake) and
\nClause 5.12<\/u> (in respect of the Ma’aden LOC under the Gas Allocation
\nLetter), Ma’aden’s Shareholder Percentage shall be deemed to include as between
\nMa’aden and Alcoa, any such Shares and Shareholder Loans held by such Saudi
\npublic companies or public funds. The Parties hereby agree to take any action
\nwhich may reasonably be required in order to implement the provisions of this
\nClause 17.13 <\/u>including (without limitation) cooperating as necessary to
\namend the relevant Company’s foreign investment licence, articles of association
\nand commercial registration so as to formalize the transfer of the Shares.”<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n
\n

2.5<\/p>\n<\/td>\n

\n

Amended wording<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Clause 21.3(a)<\/u> of the Original Agreement shall be amended by inserting
\nthe words “, Clause 17.12<\/u>” in the first line after the words “in
\nClause 9<\/u>“.<\/p>\n<\/p>\n

8<\/p>\n<\/p>\n

\n\n\n\n
3.<\/strong><\/td>\nNOTICES <\/strong><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

All notices, approvals, consents or other communications in connection with
\nthis Supplemental Agreement shall be given in accordance with the notice
\nprovision set out in Clause 23<\/u> of the Original Agreement.<\/p>\n<\/p>\n\n\n\n
4.<\/strong><\/td>\nCOUNTERPARTS <\/strong><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

This Supplemental Agreement may be executed in any number of counterparts and
\nby the parties to it on separate counterparts and each such counterpart shall
\nconstitute an original of this Supplemental Agreement but all of which together
\nconstitute one and the same instrument. This Supplemental Agreement shall not be
\neffective until each party has executed at least one counterpart.<\/p>\n<\/p>\n\n\n\n
5.<\/strong><\/td>\nGOVERNING LAW AND DISPUTE RESOLUTION <\/strong><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

This Supplemental Agreement shall be governed by, construed and interpreted
\naccording to English law and, for the avoidance of doubt, the dispute mechanisms
\nin Clause 21<\/u> of the Original Agreement (as amended by this Supplemental
\nAgreement) shall apply to this Supplemental Agreement as though incorporated
\nherein.<\/p>\n<\/p>\n

9<\/p>\n<\/p>\n

\n

IN WITNESS WHEREOF<\/strong>, each Party has caused this Supplemental
\nAgreement to be executed by its duly authorized representative as of the date
\nfirst written above.<\/p>\n<\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n
<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
<\/td>\n<\/td>\nSAUDI ARABIAN MINING COMPANY
\n(MA’ADEN)<\/strong><\/td>\n		<\/td>\n<\/td>\n<\/tr>\n
<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
\n

By:<\/p>\n<\/td>\n

<\/td>\nDr. Abdullah Dabbagh, President and CEO<\/u><\/td>\n<\/td>\n<\/td>\n<\/tr>\n
<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
\n

Signed:<\/p>\n<\/td>\n

<\/td>\n\n

\/s\/ Dr. Abdullah Dabbagh<\/p>\n<\/td>\n

<\/td>\n<\/td>\n<\/tr>\n
<\/td>\n<\/td>\n\n

ALCOA INC.<\/strong><\/p>\n<\/td>\n

<\/td>\n<\/td>\n<\/tr>\n
<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
\n

By:<\/p>\n<\/td>\n

<\/td>\nKlaus Kleinfeld, President and CEO<\/u><\/td>\n<\/td>\n<\/td>\n<\/tr>\n
<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
\n

Signed:<\/p>\n<\/td>\n

<\/td>\n\n

\/s\/ Klaus Kleinfeld<\/p>\n<\/td>\n

<\/td>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

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