Document:

U.S. Security Agreement

 Exhibit 10.3 
 EXECUTION VERSION 
  
  

 
 U.S. SECURITY AGREEMENT

 among 

ALERIS INTERNATIONAL, INC., and 
 CERTAIN SUBSIDIARIES OF ALERIS INTERNATIONAL, INC., 
 as ASSIGNORS 

and 
 BANK OF
AMERICA, N.A., 
 as ADMINISTRATIVE AGENT 
  

 
 Dated as of
June 1, 2010 
  
  

 
  

 

 TABLE OF CONTENTS 

 
  

							
	 	  	 	  	Page	 
	 ARTICLE I SECURITY INTERESTS
	  	 	3	  
	 1.1.
	  	 Grant of Security Interest
	  	 	3	  
	 1.2.
	  	 Power of Attorney
	  	 	4	  
		
	 ARTICLE II GENERAL REPRESENTATIONS, WARRANTIES AND COVENANTS
	  	 	4	  
	 2.1.
	  	 Necessary Filings
	  	 	5	  
	 2.2.
	  	 No Liens
	  	 	5	  
	 2.3.
	  	 Other Financing Statements
	  	 	5	  
	 2.4.
	  	 Chief Executive Office, Location of Inventory
	  	 	5	  
	 2.5.
	  	 Legal Names; Type of Organization (and Whether a Registered Organization and/or a Transmitting Utility); Jurisdiction of
Organization; Location; Organizational Identification Numbers; Changes Thereto; etc.
	  	 	5	  
	 2.6.
	  	 Certain Significant Transactions
	  	 	6	  
	 2.7.
	  	 Reserved
	  	 	6	  
	 2.8.
	  	 Collateral in the Possession of a Bailee
	  	 	6	  
	 2.9.
	  	 Recourse
	  	 	6	  
		
	 ARTICLE III SPECIAL PROVISIONS CONCERNING ACCOUNTS; CONTRACT RIGHTS; INSTRUMENTS; CHATTEL PAPER AND CERTAIN OTHER
COLLATERAL
	  	 	7	  
	 3.1.
	  	 Additional Representations and Warranties
	  	 	7	  
	 3.2.
	  	 Maintenance of Records
	  	 	7	  
	 3.3.
	  	 Direction to Account Debtors; Contracting Parties; etc.
	  	 	7	  
	 3.4.
	  	 Modification of Terms; etc.
	  	 	8	  
	 3.5.
	  	 Collection
	  	 	8	  
	 3.6.
	  	 Instruments
	  	 	9	  
	 3.7.
	  	 Assignors Remain Liable Under Accounts
	  	 	9	  
	 3.8.
	  	 Assignors Remain Liable Under Contracts
	  	 	9	  
	 3.9.
	  	 Deposit Accounts; Etc.
	  	 	9	  
	 3.10.
	  	 Letter-of-Credit Rights
	  	 	10	  
	 3.11.
	  	 Reserved
	  	 	10	  
	 3.12.
	  	 Chattel Paper
	  	 	10	  
	 3.13.
	  	 Further Actions
	  	 	10	  
	 3.14.
	  	 Account Verification
	  	 	11	  
		
	 ARTICLE IV PROVISIONS CONCERNING ALL COLLATERAL
	  	 	11	  
	 4.1.
	  	 Protection of Administrative Agent’s Security
	  	 	11	  
	 4.2.
	  	 Warehouse Receipts Non-Negotiable
	  	 	11	  
	 4.3.
	  	 Additional Information
	  	 	11	  
	 4.4.
	  	 Further Actions
	  	 	11	  
	 4.5.
	  	 Financing Statements
	  	 	12	  
		
	 ARTICLE V REMEDIES UPON OCCURRENCE OF AN EVENT OF DEFAULT
	  	 	12	  
	 5.1.
	  	 Remedies; Obtaining the Collateral Upon Default
	  	 	12	  
	 5.2.
	  	 Remedies; Disposition of the Collateral
	  	 	13	  

  
 - i -

							
	 5.3.
	  	 Waiver of Claims
	  	 	14	  
	 5.4.
	  	 Application of Proceeds
	  	 	15	  
	 5.5.
	  	 Remedies Cumulative
	  	 	16	  
	 5.6.
	  	 Discontinuance of Proceedings
	  	 	16	  
		
	 ARTICLE VI INDEMNITY
	  	 	16	  
	 6.1.
	  	 Indemnity
	  	 	16	  
	 6.2.
	  	 Indemnity Obligations Secured by Collateral; Survival
	  	 	18	  
		
	 ARTICLE VII DEFINITIONS
	  	 	18	  
		
	 ARTICLE VIII MISCELLANEOUS
	  	 	23	  
	 8.1.
	  	 Notices
	  	 	23	  
	 8.2.
	  	 Waiver; Amendment
	  	 	24	  
	 8.3.
	  	 Obligations Absolute
	  	 	24	  
	 8.4.
	  	 Successors and Assigns
	  	 	24	  
	 8.5.
	  	 Headings Descriptive
	  	 	25	  
	 8.6.
	  	 GOVERNING LAW; SUBMISSION TO JURISDICTION; VENUE; WAIVER OF JURY TRIAL
	  	 	25	  
	 8.7.
	  	 Assignors’ Duties
	  	 	26	  
	 8.8.
	  	 Termination; Release
	  	 	26	  
	 8.9.
	  	 Counterparts
	  	 	27	  
	 8.10.
	  	 Severability
	  	 	27	  
	 8.11.
	  	 The Administrative Agent and the other Secured Creditors
	  	 	28	  
	 8.12.
	  	 Additional Assignors
	  	 	28	  
	 8.13.
	  	 Calculation of Obligations under Secured Hedging Agreements
	  	 	28	  

  
 - ii -

			
	 ANNEX A
	  	Schedule of Chief Executive Offices; Inventory and Equipment Locations
		
	 ANNEX B
	  	Schedule of Legal Names, Type of Organization (And Whether A Registered Organization And/Or A Transmitting Utility), Jurisdiction of Organization, Location and Organizational
Identification Numbers
		
	 ANNEX C
	  	Schedule of Deposit Accounts
		
	 ANNEX D
	  	The Administrative Agent

  
 - iii -

 U.S. SECURITY AGREEMENT 

THIS SECURITY AGREEMENT, is dated as of June 1, 2010, and made by each of the undersigned assignors (each, an
“Assignor” and, together with any other entity that becomes an assignor hereunder pursuant to Section 8.12 hereof, the “Assignors”) in favor of BANK OF AMERICA, N.A., as administrative agent and
collateral agent (together with any successor administrative and collateral agent, the “Administrative Agent”), for the benefit of the Secured Creditors (as defined below). Certain capitalized terms as used herein are defined in
Article VII hereof. Except as otherwise defined herein, all capitalized terms used herein and defined in the Credit Agreement (as defined below) shall be used herein as therein defined. 

W I T N E S S E T H: 

WHEREAS, Aleris International, Inc., a Delaware corporation formerly known as AHC Intermediate Co. (“Aleris”), each
other Subsidiary of Aleris party thereto from time to time (collectively, the “Borrowers”), the lenders party thereto from time to time, (the “Lenders”), and the Administrative Agent and other agents provided for
therein (Lenders, each Issuing Lender, the Administrative Agent and such other agents are herein called the “Lender Creditors”) have entered into a Credit Agreement, dated as of June 1, 2010, providing for the making of Loans
to the Borrowers and the issuance of, and participation in, Letters of Credit for the account of the Borrowers, all as contemplated therein (as used herein, the term “Credit Agreement” means the Credit Agreement described above in
this paragraph, as the same may be amended, modified, extended, renewed, replaced, restated, supplemented or refinanced from time to time, and including any agreement extending the maturity of, or refinancing or restructuring (including, but not
limited to, the inclusion of additional borrowers or guarantors thereunder or any increase in the amount borrowed) all or any portion of, the indebtedness under such agreement or any successor agreement, whether or not with the same agent, trustee,
representative, lenders or holders; provided that, with respect to any agreement providing for the refinancing or replacement of indebtedness under the Credit Agreement, such agreement shall only be treated as, or as part of, the
Credit Agreement hereunder if either (A) all obligations under the Credit Agreement being refinanced or replaced shall be paid in full at the time of such refinancing or replacement, and all commitments and letters of credit issued pursuant to
the refinanced or replaced Credit Agreement shall have terminated in accordance with their terms or, with respect to certain Letters of Credit, been continued, with the consent of the respective issuer thereof, under such refinancing or replacement
indebtedness or (B) the Required Lenders shall have consented in writing to the refinancing or replacement indebtedness being treated as indebtedness pursuant to the Credit Agreement; 

WHEREAS, each Borrower and/or one or more of its respective subsidiaries may at any time and from time to time, to the extent permitted
under the Credit Agreement, enter into one or more Secured Hedging Agreements with one or more Lenders or Affiliates thereof (each such Lender or Affiliate, even if the respective Lender subsequently ceases to be a Lender under the Credit Agreement
for any reason, together with such Lenders’ or Affiliates’ permitted successors and assigns, and any Specified Creditors); 
 WHEREAS, each Borrower, one or more of their respective Subsidiaries and any Lender (and/or one or more of its banking affiliates) reasonably acceptable to the Administrative

 
Agent and designated to the Administrative Agent in writing by Aleris as a provider of Treasury Services (as defined below), (collectively, the “Treasury Services Creditors” and,
together with the Lender Creditors and the Specified Creditors, the “Secured Creditors”) currently or in the future may enter into, credit arrangements providing for treasury, depositary or cash management services (including
without limitation, overnight overdraft services) to Aleris and its Subsidiaries by the Treasury Services Creditors, and automated clearinghouse transfers of funds to the Treasury Services Creditors, in each case pursuant to uncommitted lines of
credit (collectively, “Treasury Services,” and with any written agreement evidencing such credit arrangements (to the extent expressly stated therein that the liabilities and indebtedness thereunder are “Obligations” for
the purposes of this Agreement (or, more generally, for purposes of the various agreements guaranteeing or securing the Credit Agreement)), as amended, modified, supplemented, replaced or refinanced from time to time, herein called the
“Treasury Services Agreements”); 
 WHEREAS, pursuant to the Credit Agreement, each of the U.S. Borrowers has
guaranteed to the Secured Creditors the payment when due of all of its Relevant Guaranteed Obligations as described therein; 

WHEREAS, pursuant to the U.S. Subsidiaries Guaranty, each U.S. Subsidiary Guarantor has jointly and severally guaranteed to the Secured
Creditors the payment when due of all Guaranteed Obligations (as defined in the U.S. Subsidiaries Guaranty); 
 WHEREAS, it is a
condition precedent to (i) the making of Loans to the Borrowers, and the issuance of, and participation in, Letters of Credit for the respective accounts of the Borrowers under the Credit Agreement, (ii) the Specified Creditors entering
into Secured Hedging Agreements and (iii) the extension of the Treasury Services by Treasury Services Creditors, that each Assignor shall have executed and delivered to the Administrative Agent this Agreement; and 

WHEREAS, each Assignor will obtain benefits from the incurrence of Loans by the Borrowers, and the issuance of, and participation in,
Letters of Credit for the respective accounts of, the Borrowers under the Credit Agreement, the entering into by the Borrowers and/or one or more of their respective Subsidiaries of Secured Hedging Agreements and the extension of Treasury Services
to Aleris and its Subsidiaries, and, accordingly, each Assignor desires to enter into this Agreement in order to (i) satisfy the condition described in the preceding paragraph and (ii) induce (x) the Lenders to make Loans to the
Borrowers and issue, and/or participate in, Letters of Credit for the respective accounts of the Borrowers, (y) the Specified Creditors to enter into Secured Hedging Agreements with the Borrowers and/or one or more of their respective
Subsidiaries and (z) the Treasury Services Creditors to enter into Treasury Services Agreements; 
 NOW, THEREFORE, in
consideration of the benefits accruing to each Assignor, the receipt and sufficiency of which are hereby acknowledged, each Assignor hereby makes the following representations and warranties to the Administrative Agent for the benefit of the Secured
Creditors and hereby covenants and agrees with the Administrative Agent for the benefit of the Secured Creditors as follows: 

  
 2 

 ARTICLE I 
 SECURITY INTERESTS 
 1.1. Grant of Security Interest. (a) As security
for the prompt and complete payment and performance when due of all of its Obligations, each Assignor does hereby assign and transfer unto the Administrative Agent, and does hereby pledge and grant to the Administrative Agent, for the benefit of the
Secured Creditors, a continuing security interest in all of the right, title and interest of such Assignor in, to and under all of the following personal property (and all rights therein) of such Assignor, or in which or to which such Assignor has
any rights, in each case whether now existing or hereafter from time to time acquired: 
 (i) each and every
Account (other than Accounts for Equipment sold or leased); 
 (ii) all Inventory; 

(iii) to the extent evidencing or governing any of the items referred to in clauses (i) and (ii) of this
Section 1.1, General Intangibles, Documents, Contract Rights, Chattel Paper (including, without limitation, Tangible Chattel Paper and Electronic Chattel Paper) and Instruments (including promissory notes); 

(iv) to the extent relating to any of the items referred to in clauses (i) through (iii) of this
Section 1.1, guarantees, letters of credit, security and other credit enhancements, Letter-of-Credit Rights and Supporting Obligations; 
 (v) cash and cash equivalents from whatever source derived, all lockboxes, Deposit Accounts and, to the extent constituting cash or Cash Equivalents or representing a claim to Cash Equivalents, securities
accounts as original collateral; 
 (vi) all intercompany loans and advances among such Assignor and the Credit
Parties and their Subsidiaries; 
 (vii) to the extent relating to any of the items referred to in the preceding
clauses, books and Records; and 
 (viii) all Proceeds and products of any and all of the foregoing (all of the
above, the “Collateral”); 
 provided that the Collateral shall exclude (i) motor vehicles or other movable
goods the perfection of which would require notation upon or delivery of a certificate of title or similar documentation or registration, (ii) Commercial Tort Claims, (iii) intellectual property (but only to the extent not affixed to,
embedded in or used in connection with the manufacture or distribution of Inventory or the administration of Accounts and Inventory), (iv) any rights or interests in any contract, lease, permit, license, charter or license agreement, covering
real or personal property, as such, if under the terms of such agreement, or applicable law with respect thereto, the valid grant of a security interest or lien therein to the Administrative Agent is

  
 3 

 
prohibited and such prohibition has not been or is not waived or the consent of the other party to such contract or lease has not been or is not otherwise obtained or under applicable law such
prohibition cannot be waived, provided that the foregoing exclusion shall not apply if any such prohibition is ineffective or unenforceable under Sections 9-406, 9-407, 9-408 or 9-409 of the Uniform Commercial Code or other applicable law or so as
to limit, impair or otherwise affect the Administrative Agent’s unconditional continuing security interests in and liens upon any rights or interests of the Assignors in or to monies due or to become due under any such contract or lease
(including any accounts), (v) those assets as to which the Co-Collateral Agents and Aleris agree, on or prior to the Closing Date and from time to time thereafter, that the costs of obtaining such a security interest or perfection thereof are
excessive in relation to the value of the Lenders of the security afforded thereby or the increase of the Borrowing Base resulting therefrom, (vi) all Excluded Accounts and all assets held in or credited to any Excluded Account,
(vii) investment property (including stock of Subsidiaries), (viii) Equipment (including all machinery or manufacturing Equipment), (ix) Real Property, (x) insurance (other than insurance constituting proceeds of Collateral), and
(xi) assets of such Assignor located outside of the United States to the extent a Lien on such assets cannot be created and perfected under United States federal or state law and (xii) proceeds of any of the foregoing except to the extent
that any such proceeds is included in items (i) through (viii) of the definition of Collateral (the assets referred to in the following clauses (i) through (xii), collectively, the “Excluded Assets”). 

(c) The security interest of the Administrative Agent under this Agreement extends to all Collateral which any Assignor may acquire, or
with respect to which any Assignor may obtain rights, at any time during the term of this Agreement. 
 (d) Notwithstanding
anything to the contrary contained in this Section 1.1 or elsewhere in this Agreement, each Assignor and the Administrative Agent (on behalf of the Secured Creditors) acknowledges and agrees that the security interest granted pursuant to
this Agreement (including pursuant to this Section 1.1) to the Administrative Agent for the benefit of the Secured Creditors in the Collateral, shall be a First Priority Lien. 

1.2. Power of Attorney. Each Assignor hereby constitutes and appoints the Administrative Agent its true and lawful attorney,
irrevocably, with full power after the occurrence of and during the continuance of an Event of Default (in the name of such Assignor or otherwise) to act, require, demand, receive, compound and give acquittance for any and all moneys and claims for
moneys due or to become due to such Assignor under or arising out of the Collateral, to endorse any checks or other instruments or orders in connection therewith and to file any claims or take any action or institute any proceedings which the
Administrative Agent may deem to be necessary or advisable to protect the interests of the Secured Creditors, which appointment as attorney is coupled with an interest. 
 ARTICLE II 
 GENERAL REPRESENTATIONS, WARRANTIES AND COVENANTS 

Each Assignor represents, warrants and covenants, which representations, warranties and covenants shall survive execution and delivery of this Agreement,
as follows: 

  
 4 

 2.1. Necessary Filings. All filings, registrations, recordings and other actions
necessary or appropriate to create, preserve and perfect the security interest granted by such Assignor to the Administrative Agent hereby in respect of the Collateral have been accomplished, in each case, within the time frames required by this
Agreement, and the security interest granted to the Administrative Agent pursuant to this Agreement in and to the Collateral creates a valid and, together with all such filings, registrations, recordings and other actions, a perfected security
interest therein prior to the rights of all other Persons therein and subject to no other Liens (other than Permitted Liens) and is entitled to all the rights, priorities and benefits afforded by the Uniform Commercial Code or other relevant law as
enacted in any relevant jurisdiction to perfected security interests, in each case to the extent that the Collateral consists of the type of property in which a security interest may be perfected by possession or control (within the meaning of the
UCC as in effect on the Closing Date in the State of New York), or by filing a financing statement under the Uniform Commercial Code as enacted in any relevant jurisdiction. Upon the actions taken under this Section 2.1, such security
interest shall constitute a First Priority Lien and shall be enforceable as such as against all other Persons. 
 2.2. No
Liens. Such Assignor is, and as to all Collateral acquired by it from time to time after the Closing Date such Assignor will be, the owner of all Collateral free from any Lien or other right, title or interest of any Person (other than Permitted
Liens), and such Assignor shall defend the Collateral against all claims and demands of all Persons at any time claiming the same or any interest therein adverse to the interests of the Administrative Agent. 

2.3. Other Financing Statements. As of the Closing Date, there is no financing statement (or similar statement or instrument of
registration under the law of any jurisdiction) covering or purporting to cover any interest of any kind in the Collateral (other than financing statements filed in respect of Permitted Liens), and so long as the Termination Date has not occurred,
such Assignor will not execute or authorize to be filed in any public office any financing statement (or similar statement or instrument of registration under the law of any jurisdiction) or statements relating to the Collateral, except financing
statements filed or to be filed in respect of and covering the security interests granted hereby by such Assignor or in connection with Permitted Liens. 
 2.4. Chief Executive Office, Location of Inventory. On the Closing Date, and during the four calendar month period preceding this Agreement, no Assignor has maintained its chief executive office or
held Inventory in any location other than as provided in Annex A hereto. 
 2.5. Legal Names; Type of Organization
(and Whether a Registered Organization and/or a Transmitting Utility); Jurisdiction of Organization; Location; Organizational Identification Numbers; Changes Thereto; etc. The exact legal name of each Assignor, the type of organization of such
Assignor, whether or not such Assignor is a Registered Organization, the jurisdiction of organization of such Assignor, such Assignor’s Location, the organizational identification number (if any) of such Assignor, and whether or not such
Assignor is a Transmitting Utility, is listed on Annex B hereto for such Assignor. Such Assignor shall not change its legal name, its type of organization, its status as a Registered Organization (in the case of a Registered
Organization), its status as a Transmitting Utility or as a Person which is not a Transmitting Utility, as the case may be, its jurisdiction of organization, 

  
 5 

 
its Location, or its organizational identification number (if any) from that used on Annex B hereto, except that any such changes shall be permitted (so long as not in violation of
the applicable requirements of the Secured Debt Agreements and so long as same do not involve such Assignor changing its jurisdiction of organization or Location from the United States or a State thereof to a jurisdiction of organization or
Location, as the case may be, outside the United States or a State thereof) if (i) it shall have given to the Administrative Agent not less than fifteen (15) days’ prior written notice of each change to the information listed on
Annex B (as adjusted for any subsequent changes thereto previously made in accordance with this sentence), together with a supplement to Annex B which shall correct all information contained therein for such Assignor, and
(ii) in connection with the respective such change or changes, it shall have taken all action requested by the Administrative Agent to maintain the security interests of the Administrative Agent in the Collateral at all times fully perfected
and in full force and effect. In addition, to the extent that such Assignor does not have an organizational identification number on the Closing Date and later obtains one, such Assignor shall promptly thereafter notify the Administrative Agent of
such organizational identification number and shall take all actions reasonably satisfactory to the Administrative Agent to the extent necessary to maintain the security interest of the Administrative Agent in the Collateral intended to be granted
hereby fully perfected and in full force and effect. 
 2.6. Certain Significant Transactions. During the one year period
preceding the Closing Date, no Person shall have merged or consolidated with or into any Assignor, and no Person shall have liquidated into, or transferred all or substantially all of its assets to, any Assignor, in each case except as described in
the Plan and the Transactions contemplated therein. 
 2.7. Reserved. 

2.8. Collateral in the Possession of a Bailee. If any Inventory is at any time in the possession of a bailee (other than pursuant
to tolling arrangements entered into in the ordinary course of business) such Assignor shall promptly notify the Administrative Agent thereof and, if requested by the Administrative Agent, shall use its reasonable best efforts to promptly obtain an
acknowledgment from such bailee, in form and substance reasonably satisfactory to the Administrative Agent, that the bailee holds such Collateral for the benefit of the Administrative Agent and shall act upon the instructions of the Administrative
Agent, without the further consent of such Assignor. The Administrative Agent agrees with such Assignor that the Administrative Agent shall not give any such instructions unless an Event of Default has occurred and is continuing or would occur after
taking into account any action by the respective Assignor with respect to any such bailee. 
 2.9. Recourse. This
Agreement is made with full recourse to each Assignor and pursuant to and upon all the warranties, representations, covenants and agreements on the part of such Assignor contained herein, in the other Secured Debt Agreements and otherwise in writing
in connection herewith or therewith. 

  
 6 

 ARTICLE III 
 SPECIAL PROVISIONS CONCERNING ACCOUNTS; CONTRACT RIGHTS; 
 INSTRUMENTS; CHATTEL
PAPER AND CERTAIN OTHER COLLATERAL 
 3.1. Additional Representations and Warranties. As of the time when each of its
Accounts constituting Collateral arises, each Assignor shall be deemed to have represented and warranted that each such Account, and all records, papers and documents relating thereto (if any) are genuine and what they purport to be, and that all
papers and documents (if any) relating thereto (i) will, to the knowledge of such Assignor, represent the genuine, legal, valid and binding obligation of the account debtor evidencing indebtedness unpaid and owed by the respective account
debtor arising out of the performance of labor or services or the sale or lease and delivery of the merchandise listed therein, or both, (ii) will be the only original writings evidencing and embodying such obligation of the account debtor
named therein (other than copies created for general accounting purposes), (iii) will, to the knowledge of such Assignor, evidence true and valid obligations, enforceable in accordance with their respective terms, and (iv) will be in
compliance and will conform in all material respects with all applicable federal, state and local laws and applicable laws of any relevant foreign jurisdiction. 
 3.2. Maintenance of Records. Each Assignor will keep and maintain at its own cost and expense accurate records of its Accounts and Contracts, in each case constituting Collateral, including, but
not limited to, originals of all documentation (including each Contract) with respect thereto, records of all payments received, all credits granted thereon, all merchandise returned and all other dealings therewith, and such Assignor will make the
same available on such Assignor’s premises to the Administrative Agent for inspection, at such Assignor’s own cost and expense, at any and all reasonable times upon prior notice to such Assignor and otherwise in accordance with the Credit
Agreement. Upon the occurrence and during the continuance of an Event of Default under Section 11.01 or 11.05 of the Credit Agreement (or any other Event of Default in respect of which the Administrative Agent has given Aleris notice) and at
the request of the Administrative Agent, such Assignor shall, at its own cost and expense, deliver all tangible evidence of its Accounts and Contract Rights constituting Collateral (including, without limitation, all documents evidencing the
Accounts and such Contracts) and such books and records to the Administrative Agent or to its representatives (copies of which evidence and books and records may be retained by such Assignor). Upon the occurrence and during the continuance of an
Event of Default under Section 11.01 or 11.05 of the Credit Agreement (or any other Event of Default in respect of which the Administrative Agent has given Aleris notice) and if the Administrative Agent so directs, such Assignor shall legend,
in form and manner satisfactory to the Administrative Agent, the Accounts and the Contracts, in each case constituting Collateral as well as books, records and documents (if any) of such Assignor evidencing or pertaining to such Accounts and
Contracts with an appropriate reference to the fact that such Accounts and Contracts have been assigned to the Administrative Agent and that the Administrative Agent has a security interest therein. 

3.3. Direction to Account Debtors; Contracting Parties; etc. Each Assignor agrees to cause all payments on account of the Accounts
and Contracts constituting Collateral to be made to the Deposit Accounts of the applicable Assignor in accordance with the terms of Section 5.03 of the Credit Agreement, and upon the occurrence of an Event of Default, or at any

  
 7 

 
other time as may be provided for under the Credit Agreement, (x) the Administrative Agent may, at its option, directly notify the obligors with respect to such Accounts and/or under such
Contracts to make payments with respect thereto as provided in Section 5.03 of the Credit Agreement, and the (y) Administrative Agent may enforce collection of any such Accounts and Contracts and may adjust, settle or compromise the amount
of payment thereof, in the same manner and to the same extent as such Assignor. Without notice to or assent by any Assignor, the Administrative Agent may, in accordance with the terms of Section 5.03 of the Credit Agreement, apply any or all
amounts then in, or thereafter deposited in, the applicable Deposit Accounts toward the payment of the Obligations in the manner provided in Section 5.03 of the Credit Agreement. The reasonable costs and expenses of collection (including
reasonable attorneys’ fees), whether incurred by an Assignor or the Administrative Agent, shall be borne by the relevant Assignor. The Administrative Agent shall deliver a copy of each notice referred to in the preceding clause (x) to the
relevant Assignor, provided, that, (A) the failure by the Administrative Agent to so notify such Assignor shall not affect the effectiveness of such notice or the other rights of the Administrative Agent created by this Section,
and no such notice shall be required if an Event of Default of the type described in Section 11.05 of the Credit Agreement has occurred and is continuing. 
 3.4. Modification of Terms; etc. Except in accordance with such Assignor’s ordinary course of business and consistent with reasonable business judgment or as permitted by
Section 3.5, no Assignor shall rescind or cancel any indebtedness evidenced by any Account constituting Collateral, or under any Contract constituting Collateral, or modify any material term thereof or make any material adjustment with
respect thereto, or extend or renew the same, or compromise or settle any material dispute, claim, suit or legal proceeding relating thereto, or sell any Account or Contract constituting Collateral, or interest therein, without the prior written
consent of the Administrative Agent. No Assignor will do anything to impair the rights of the Administrative Agent in the Accounts or Contracts constituting Collateral. 
 3.5. Collection. Each Assignor shall endeavor in accordance with reasonable business practices to cause to be collected from the account debtor named in each of its Accounts constituting Collateral
or obligor under any Contract constituting Collateral, as and when due (including, without limitation, amounts which are delinquent, such amounts to be collected in accordance with generally accepted lawful collection procedures) any and all amounts
owing under or on account of such Account or Contract, and apply forthwith upon receipt thereof all such amounts as are so collected to the outstanding balance of such Account or under such Contract constituting Collateral. Except as otherwise
directed by the Administrative Agent after the occurrence and during the continuation of an Event of Default, any Assignor may allow in the ordinary course of business as adjustments to amounts owing under its Accounts and Contracts (i) an
extension or renewal of the time or times of payment, or settlement for less than the total unpaid balance, which such Assignor finds appropriate in accordance with reasonable business judgment and (ii) a refund or credit due as a result of
returned or damaged merchandise or improperly performed services or for other reasons which such Assignor finds appropriate in accordance with reasonable business judgment. The reasonable costs and expenses (including, without limitation, reasonable
attorneys’ fees) of collection, whether incurred by an Assignor or the Administrative Agent, shall be borne by the relevant Assignor. 

  
 8 

 3.6. Instruments. If any Assignor owns or acquires any Instrument in excess of
$1,000,000 constituting Collateral (other than checks and other payment instruments received and collected in the ordinary course of business), such Assignor will within twenty (20) Business Days notify the Administrative Agent thereof, and
upon request by the Administrative Agent will promptly deliver such Instrument to the Administrative Agent appropriately endorsed to the order of the Administrative Agent. 
 3.7. Assignors Remain Liable Under Accounts. Anything herein to the contrary notwithstanding, the Assignors shall remain liable under each of the Accounts constituting Collateral to observe and
perform all of the conditions and obligations to be observed and performed by them thereunder, all in accordance with the terms of any agreement giving rise to such Accounts. Neither the Administrative Agent nor any other Secured Creditor shall have
any obligation or liability under any Account constituting Collateral (or any agreement giving rise thereto) by reason of or arising out of this Agreement or the receipt by the Administrative Agent or any other Secured Creditor of any payment
relating to such Account pursuant hereto, nor shall the Administrative Agent or any other Secured Creditor be obligated in any manner to perform any of the obligations of any Assignor under or pursuant to any Account (or any agreement giving rise
thereto), to make any payment, to make any inquiry as to the nature or the sufficiency of any payment received by them or as to the sufficiency of any performance by any party under any Account (or any agreement giving rise thereto), to present or
file any claim, to take any action to enforce any performance or to collect the payment of any amounts which may have been assigned to them or to which they may be entitled at any time or times. 

3.8. Assignors Remain Liable Under Contracts. Anything herein to the contrary notwithstanding, the Assignors shall remain liable
under each of the Contracts constituting Collateral to observe and perform all of the conditions and obligations to be observed and performed by them thereunder, all in accordance with and pursuant to the terms and provisions of each such Contract.
Neither the Administrative Agent nor any other Secured Creditor shall have any obligation or liability under any Contract constituting Collateral by reason of or arising out of this Agreement or the receipt by the Administrative Agent or any other
Secured Creditor of any payment relating to such Contract pursuant hereto, nor shall the Administrative Agent or any other Secured Creditor be obligated in any manner to perform any of the obligations of any Assignor under or pursuant to any
Contract, to make any payment, to make any inquiry as to the nature or the sufficiency of any performance by any party under any Contract, to present or file any claim, to take any action to enforce any performance or to collect the payment of any
amounts which may have been assigned to them or to which they may be entitled at any time or times. 
 3.9. Deposit Accounts;
Etc. (a) Annex C hereto accurately sets forth, as of the Closing Date, for each Assignor, each Deposit Account maintained by such Assignor (including a description thereof and the respective account number), the name of the
respective bank with which such Deposit Account is maintained, and the jurisdiction of the respective bank with respect to such Deposit Account. For each Deposit Account (other than (i) Exempted Deposit Accounts and (ii) Exempted
Disbursement Accounts) the respective Assignor shall cause the bank with which the Deposit Account is maintained to execute and deliver to the Administrative Agent, on the Closing Date or, if later, at the time of the establishment of the respective
Deposit 

  
 9 

 
Account, a Cash Management Control Agreement in accordance with the provisions of Section 10.13 of the Credit Agreement. 

(b) After the date of this Agreement, no Assignor shall establish any new demand, time, savings, passbook or similar account, except for
Deposit Accounts established and maintained with banks and meeting the requirements of preceding clause (a). At the time any such Deposit Account is established, the appropriate Cash Management Control Agreement shall be entered into in
accordance with the requirements of Section 10.13 of the Credit Agreement and the respective Assignor shall furnish to the Administrative Agent a supplement to Annex C hereto containing the relevant information with respect to the
respective Deposit Account and the bank with which same is established. 
 3.10. Letter-of-Credit Rights. With respect to
any Letter of Credit Rights constituting Collateral, if any Assignor is at any time a beneficiary under a letter of credit with a stated amount of $5,000,000 or more, such Assignor shall promptly notify the Administrative Agent thereof and, at the
request of the Administrative Agent, such Assignor shall, pursuant to an agreement in form and substance reasonably satisfactory to the Administrative Agent, use its reasonable best efforts to (i) arrange for the issuer and any confirmer of
such letter of credit to consent to an assignment to the Administrative Agent of the proceeds of any drawing under such letter of credit or (ii) arrange for the Administrative Agent, to become the transferee beneficiary of such letter of
credit, with the Administrative Agent agreeing, in each case, that the proceeds of any drawing under the letter of credit are to be applied as provided in this Agreement after the occurrence and during the continuance of an Event of Default.

 3.11. Reserved. 
 3.12. Chattel Paper. Upon the reasonable request of the Administrative Agent made at any time or from time to time, each Assignor shall promptly furnish to the Administrative Agent a list of all
Electronic Chattel Paper constituting Collateral held or owned by such Assignor. Furthermore, if requested by the Administrative Agent, each Assignor shall promptly take all actions which are reasonably practicable so that the Administrative Agent,
has “control” of all Electronic Chattel Paper constituting Collateral in accordance with the requirements of Section 9-105 of the UCC. Each Assignor will promptly (and in any event within ten (10) days) following any request
by the Administrative Agent during the occurrence of any Event of Default, deliver all of its Tangible Chattel Paper constituting Collateral to the Administrative Agent. 
 3.13. Further Actions. Each Assignor will, at its own expense, make, execute, endorse, acknowledge, file and/or deliver to the Administrative Agent from time to time such vouchers, invoices,
schedules, confirmatory assignments, conveyances, financing statements, transfer endorsements, certificates, reports and other assurances or instruments and take such further steps, including any and all actions as may be necessary or required under
the Federal Assignment of Claims Act, relating to its Accounts, Contracts, Instruments and other property or rights covered by the security interest hereby granted, as the Administrative Agent may reasonably require. 

  
 10 

 3.14. Account Verification. Whether or not an Event of Default exists, the
Administrative Agent shall have the right at any time, in the name of Administrative Agent, any designee of the Administrative Agent or any Assignor, to verify the validity, amount or any other matter relating to any Accounts of Assignors by mail,
telephone or otherwise. Assignors shall cooperate fully with the Administrative Agent in an effort to facilitate and promptly conclude any such verification process. 
 ARTICLE IV 
 PROVISIONS CONCERNING ALL COLLATERAL 

4.1. Protection of Administrative Agent’s Security. Except as otherwise permitted by the Secured Debt Agreements, each
Assignor will do nothing to impair the rights of the Administrative Agent in the Collateral. Each Assignor will at all times maintain insurance, at such Assignor’s own expense to the extent and in the manner provided in Section 9.09 of the
Credit Agreement. Except to the extent otherwise permitted to be retained by such Assignor or applied by such Assignor pursuant to the terms of the Secured Debt Agreements, the Administrative Agent shall at the time any proceeds of such insurance
with respect to the Collateral are distributed to the Secured Creditors, apply such proceeds in accordance with Section 5.02 of the Credit Agreement and Section 5.4 hereof. Each Assignor assumes all liability and responsibility in
connection with the Collateral acquired by it and the liability of such Assignor to pay the Obligations shall in no way be affected or diminished by reason of the fact that such Collateral may be lost, destroyed, stolen, damaged or for any reason
whatsoever unavailable to such Assignor. 
 4.2. Warehouse Receipts Non-Negotiable. To the extent practicable, each
Assignor agrees that if any warehouse receipt or receipt in the nature of a warehouse receipt is issued with respect to any of its Inventory, such Assignor shall request that such warehouse receipt or receipt in the nature thereof shall not be
“negotiable” (as such term is used in Section 7-104 of the Uniform Commercial Code as in effect in any relevant jurisdiction or under other relevant law). 
 4.3. Additional Information. Each Assignor will furnish to the Administrative Agent such information with respect to the Collateral as may be requested by Administrative Agent from time to time in
accordance with the terms of the Credit Agreement. Without limiting the foregoing, each Assignor agrees that it shall promptly (and in any event within thirty (30) days after its receipt of the respective request) furnish to the Administrative
Agent such updated Annexes hereto as may from time to time be reasonably requested by the Administrative Agent. 
 4.4.
Further Actions. Each Assignor will, at its own expense and upon the reasonable request of the Administrative Agent, make, execute, endorse, acknowledge, file and/or deliver to the Administrative Agent from time to time such lists,
descriptions and designations of its Collateral, warehouse receipts, receipts in the nature of warehouse receipts, bills of lading, documents of title, vouchers, invoices, schedules, confirmatory assignments, conveyances, financing statements,
transfer endorsements, certificates, reports and other 

  
 11 

 
assurances or instruments and take such further steps relating to the Collateral and other property or rights covered by the security interest hereby granted, which the Administrative Agent deems
reasonably appropriate or advisable to perfect, preserve or protect its security interest in the Collateral. 
 4.5.
Financing Statements. Each Assignor agrees to execute and deliver to the Administrative Agent such financing statements, in form reasonably acceptable to the Administrative Agent, as the Administrative Agent may from time to time reasonably
request or as are reasonably necessary or desirable in the opinion of the Administrative Agent to establish and maintain a valid, enforceable, perfected security interest in the Collateral as provided herein and the other rights and security
contemplated hereby. Each Assignor will pay any applicable filing fees, recordation taxes and related expenses relating to its Collateral. Each Assignor hereby authorizes the Administrative Agent to file any such financing statements without the
signature of such Assignor where permitted by law (and such authorization shall describe the Collateral in substantially the same manner as set forth in Section 1.1). 

ARTICLE V 

REMEDIES UPON OCCURRENCE OF AN EVENT OF DEFAULT 
 5.1. Remedies; Obtaining the Collateral Upon Default. Each Assignor agrees that, if any Event of Default shall have occurred and be continuing, then and in every such case, the Administrative
Agent, in addition to any rights now or hereafter existing under applicable law and under the other provisions of this Agreement, shall have all rights as a secured creditor under any UCC, and such additional rights and remedies to which a secured
creditor is entitled under the laws in effect in all relevant jurisdictions and, may: 
 (i) personally, or by
agents or attorneys, immediately take possession of the Collateral or any part thereof, from such Assignor or any other Person who then has possession of any part thereof with or without notice or process of law, and for that purpose may enter upon
such Assignor’s premises where any of the Collateral is located and remove the same and use in connection with such removal any and all services, supplies, aids and other facilities of such Assignor; 

(ii) subject to Section 3.3, instruct the obligor or obligors on any agreement, instrument or other obligation
(including, without limitation, the Accounts and the Contracts) constituting the Collateral to make any payment required by the terms of such agreement, instrument or other obligation directly to the Administrative Agent and may exercise any and all
remedies of such Assignor in respect of such Collateral; 
 (iii) instruct all banks which have entered into a
Cash Management Control Agreement with the Administrative Agent to transfer all monies, securities and instruments held by such depositary bank to a Cash Collateral Account, or otherwise as designated under the Credit Agreement; 

  
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 (iv) sell, assign or otherwise liquidate any or all of the Collateral or any
part thereof in accordance with Section 5.2 hereof, or direct such Assignor to sell, assign or otherwise liquidate any or all of the Collateral or any part thereof, and, in each case, take possession of the proceeds of any such sale or
liquidation; 
 (v) take possession of the Collateral or any part thereof, by directing such Assignor in writing
to deliver the same to the Administrative Agent at any reasonable place or places designated by the Administrative Agent, in which event such Assignor shall at its own expense: 

(x) forthwith cause the same to be moved to the place or places so designated by the Administrative Agent and there
delivered to the Administrative Agent; 
 (y) store and keep any Collateral so delivered to the Administrative
Agent at such place or places pending further action by the Administrative Agent as provided in Section 5.2 hereof; and 
 (z) while the Collateral shall be so stored and kept, provide such security and maintenance services as shall be reasonably necessary to protect the same and to preserve and maintain it in good condition;

 (vi) apply any monies constituting Collateral or proceeds thereof in accordance with the provisions of
Section 5.4; and 
 (vii) take any other action as specified in clauses (1) through (5),
inclusive, of Section 9-607 of the UCC; 
 it being understood that each Assignor’s obligation so to deliver the Collateral is of the
essence of this Agreement and that, accordingly, upon application to a court of equity having jurisdiction, the Administrative Agent shall be entitled to a decree requiring specific performance by such Assignor of said obligation. Upon the
occurrence of an Event of Default, the Administrative Agent is hereby granted an irrevocable, non-exclusive license or other right to use, license, or sub-license (without payment of royalty or other compensation to any Person) any and all
trademarks and tradenames, brochures, customer lists, promotional and advertising materials, labels, packaging materials of Assignors for purposes of selling any Collateral. Each Assignor’s rights and interests under any such intellectual
property shall inure to Administrative Agent’s benefit. By accepting the benefits of this Agreement and each other Security Document, the Secured Creditors expressly acknowledge and agree that this Agreement and each other Security Document may
be enforced only by the action of the Administrative Agent acting upon the instructions of the Required Secured Creditors and that no other Secured Creditor shall have any right individually to seek to enforce or to enforce this Agreement or to
realize upon the security to be granted hereby, it being understood and agreed that such rights and remedies may be exercised by the Administrative Agent for the benefit of the Secured Creditors upon the terms of this Agreement and the other
Security Documents. 
 5.2. Remedies; Disposition of the Collateral. If any Event of Default shall have occurred and be
continuing, then any Collateral repossessed by the Administrative Agent 

  
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under or pursuant to Section 5.1 hereof and any other Collateral whether or not so repossessed by the Administrative Agent, may be sold, assigned, leased or otherwise disposed of
under one or more contracts or as an entirety, and without the necessity of gathering at the place of sale the property to be sold, and in general in such manner, at such time or times, at such place or places and on such terms as the Administrative
Agent may, in compliance with any mandatory requirements of applicable law, determine to be commercially reasonable. Any of such Collateral may be sold, leased or otherwise disposed of, in the condition in which the same existed when taken by the
Administrative Agent or after any overhaul or repair at the expense of the relevant Assignor which the Administrative Agent shall determine to be commercially reasonable. Any such sale, lease or other disposition may be effected by means of a public
disposition or private disposition, effected in accordance with the applicable requirements (in each case if and to the extent applicable) of Sections 9-610 through 9-613 of the UCC and/or such other mandatory requirements of applicable law as
may apply to the respective disposition. The Administrative Agent may, without notice or publication, adjourn any public or private disposition or cause the same to be adjourned from time to time by announcement at the time and place fixed for the
disposition, and such disposition may be made at any time or place to which the disposition may be so adjourned. To the extent permitted by any such requirement of law, the Administrative Agent may bid for and become the purchaser (and may pay all
or any portion of the purchase price by crediting Obligations against the purchase price) of the Collateral or any item thereof, offered for disposition in accordance with this Section 5.2 without accountability to the relevant Assignor.
If, under applicable law, the Administrative Agent shall be permitted to make disposition of the Collateral within a period of time which does not permit the giving of notice to the relevant Assignor as hereinabove specified, the Administrative
Agent need give such Assignor only such notice of disposition as shall be required by such applicable law. Each Assignor agrees to do or cause to be done all such other acts and things as may be reasonably necessary to make such disposition or
dispositions of all or any portion of the Collateral valid and binding and in compliance with any and all applicable laws, regulations, orders, writs, injunctions, decrees or awards of any and all courts, arbitrators or governmental
instrumentalities, domestic or foreign, having jurisdiction over any such sale or sales, all at such Assignor’s expense. 

5.3. Waiver of Claims. Except as otherwise provided in this Agreement, EACH ASSIGNOR HEREBY WAIVES, TO THE EXTENT PERMITTED BY
APPLICABLE LAW, NOTICE AND JUDICIAL HEARING IN CONNECTION WITH THE ADMINISTRATIVE AGENT’S TAKING POSSESSION OR THE ADMINISTRATIVE AGENT’S DISPOSITION OF ANY OF THE COLLATERAL, INCLUDING, WITHOUT LIMITATION, ANY AND ALL PRIOR NOTICE AND
HEARING FOR ANY PREJUDGMENT REMEDY OR REMEDIES, and each Assignor hereby further waives, to the extent permitted by law: 
 (i) all damages occasioned by such taking of possession or any such disposition except any damages which are the direct result of the Administrative Agent’s gross negligence or willful misconduct (as
determined by a court of competent jurisdiction in a final and non-appealable decision); 

  
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 (ii) all other requirements as to the time, place and terms of sale or other
requirements with respect to the enforcement of the Administrative Agent’s rights hereunder; and 
 (iii)
all rights of redemption, appraisement, valuation, stay, extension or moratorium now or hereafter in force under any applicable law in order to prevent or delay the enforcement of this Agreement or the absolute sale of the Collateral or any portion
thereof, and each Assignor, for itself and all who may claim under it, insofar as it or they now or hereafter lawfully may, hereby waives the benefit of all such laws. 
 Any sale of, or the grant of options to purchase, or any other realization upon, any Collateral shall operate to divest all right, title, interest, claim and demand, either at law or in equity, of the
relevant Assignor therein and thereto, and shall be a perpetual bar both at law and in equity against such Assignor and against any and all Persons claiming or attempting to claim the Collateral so sold, optioned or realized upon, or any part
thereof, from, through and under such Assignor. 
 5.4. Application of Proceeds. (a) All moneys collected by the
Administrative Agent upon any sale or other disposition of the Collateral, together with all other moneys received by the Administrative Agent hereunder shall be applied in accordance with the provisions of Section 5.03(d) of the Credit
Agreement. 
 (b) Each of the Secured Creditors, by their acceptance of the benefits hereof and of the other Security Documents,
agrees and acknowledges that if the Lender Creditors receive a distribution on account of undrawn amounts with respect to Letters of Credit issued under the Credit Agreement (which shall only occur after all Loans and Unpaid Drawings have been paid
in full), such amounts shall be paid to the Administrative Agent under the Credit Agreement and held by it, for the equal and ratable benefit of the Lender Creditors, as cash security for the repayment of Obligations owing to the Lender Creditors as
such. If any amounts are held as cash security pursuant to the immediately preceding sentence, then upon the termination of all outstanding Letters of Credit under the Credit Agreement, and after the application of all such cash security to the
repayment of all Obligations owing to the Lender Creditors after giving effect to the termination of all such Letters of Credit, if there remains any excess cash, such excess cash shall be remitted to the Administrative Agent for distribution in
accordance with Section 5.4(a) hereof. 
 (c) All payments required to be made hereunder shall be made to the
Administrative Agent for the account of the Lender Creditors, the Specified Creditors or the Treasury Services Creditors, as applicable. 
 (d) For purposes of applying payments received in accordance with this Section 5.4, the Administrative Agent shall be entitled to rely upon the Specified Creditors and the Treasury Services
Creditors, as applicable, for a determination (which the Administrative Agent, the Specified Creditors and the Treasury Services Creditors agree (or shall agree) to provide upon request of the Administrative Agent) of the outstanding Obligations
(and Dollar Equivalents thereof) owed to the Lender Creditors, the Specified Creditors or the Treasury Services Creditors as the case may be. 

  
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 (e) It is understood that the Assignors shall remain jointly and severally
liable to the extent of any deficiency between the amount of the proceeds of the Collateral and the aggregate amount of the Obligations. 
 5.5. Remedies Cumulative. Each and every right, power and remedy hereby specifically given to the Administrative Agent shall be in addition to every other right, power and remedy specifically given
to the Administrative Agent under this Agreement, the other Secured Debt Agreements or now or hereafter existing at law, in equity or by statute and each and every right, power and remedy whether specifically herein given or otherwise existing may
be exercised from time to time or simultaneously and as often and in such order as may be deemed expedient by the Administrative Agent. All such rights, powers and remedies shall be cumulative and the exercise or the beginning of the exercise of one
shall not be deemed a waiver of the right to exercise any other or others. No delay or omission of the Administrative Agent in the exercise of any such right, power or remedy and no renewal or extension of any of the Obligations shall impair any
such right, power or remedy or shall be construed to be a waiver of any Default or Event of Default or an acquiescence thereof. No notice to or demand on any Assignor in any case shall entitle it to any other or further notice or demand in similar
or other circumstances or constitute a waiver of any of the rights of the Administrative Agent to any other or further action in any circumstances without notice or demand. In the event that the Administrative Agent shall bring any suit to enforce
any of its rights hereunder and shall be entitled to judgment, then in such suit the Administrative Agent may recover reasonable expenses, including reasonable attorneys’ fees, and the amounts thereof shall be included in such judgment.

 5.6. Discontinuance of Proceedings. In case the Administrative Agent shall have instituted any proceeding to enforce
any right, power or remedy under this Agreement by foreclosure, sale, entry or otherwise, and such proceeding shall have been discontinued or abandoned for any reason or shall have been determined adversely to the Administrative Agent, then and in
every such case the relevant Assignor, the Administrative Agent and each holder of any of the Obligations shall be restored to their former positions and rights hereunder with respect to the Collateral subject to the security interest created under
this Agreement, and all rights, remedies and powers of the Administrative Agent shall continue as if no such proceeding had been instituted. 
 ARTICLE VI 
 INDEMNITY 

6.1. Indemnity. (a) Each Assignor jointly and severally agrees to indemnify and hold the Administrative Agent, each other
Secured Creditor and their respective successors, assigns, employees, affiliates and agents (hereinafter in this Section 6.1 referred to individually as “Indemnitee,” and collectively as “Indemnitees”)
harmless from any and all liabilities, obligations, damages, injuries, penalties, claims, demands, actions, suits, judgments and any and all costs, expenses or disbursements (including reasonable attorneys’ fees and expenses) (for the purposes
of this Section 6.1 the foregoing are collectively called “expenses”) of whatsoever kind and nature imposed on, asserted against or incurred by any of the Indemnitees in any way

  
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relating to or arising out of this Agreement, any other Secured Debt Agreement or any other document executed in connection herewith or therewith or in any other way connected with the
administration of the transactions contemplated hereby or thereby or the enforcement of any of the terms of, or the preservation of any rights under any thereof, or in any way relating to or arising out of the manufacture, ownership, ordering,
purchase, delivery, control, acceptance, lease, financing, possession, operation, condition, sale, return or other disposition, or use of the Collateral (including, without limitation, latent or other defects, whether or not discoverable), the
violation of the laws of any country, state or other governmental body or unit, any tort (including, without limitation, claims arising or imposed under the doctrine of strict liability, or for or on account of injury to or the death of any Person
(including any Indemnitee), or property damage), or contract claim; provided that no Indemnitee shall be indemnified pursuant to this Section 6.1 (a) for losses, claims, damages, expenses or liabilities to the extent
(w) caused by the gross negligence, bad faith or willful misconduct of such Indemnitee (as determined by a court of competent jurisdiction in a final and non-appealable decision), (x) brought solely by an Affiliate of such Indemnitee,
(y) resulting from a breach of this Agreement or any other Secured Credit Documents by such Indemnitee, or (z) relating solely to disputes among Indemnitees and not involving the Sponsors, the Grantors, or any of their Affiliates (unless
caused by or relating to a breach caused by the Sponsors, the Grantors, or any of their Affiliates); provided, further, that the Assignors shall not be required to reimburse the legal fees and expenses of more than one outside counsel
(in addition to any necessary or advisable special counsel and up to one local counsel in each applicable local jurisdiction) for all Indemnitees unless, in the written opinion of outside counsel reasonably satisfactory to the Assignors and the
Administrative Agent, representation of all such Indemnitees would be inappropriate due to the existence of an actual or potential conflict of interest. Each Assignor agrees that upon written notice by any Indemnitee of the assertion of such a
liability, obligation, damage, injury, penalty, claim, demand, action, suit or judgment, the relevant Assignor shall assume full responsibility for the defense thereof. Each Indemnitee agrees to use its best efforts to promptly notify the relevant
Assignor of any such assertion of which such Indemnitee has knowledge. 
 (b) Without limiting the application of
Section 6.1(a) hereof, each Assignor agrees, jointly and severally, to pay or reimburse the Administrative Agent for any and all reasonable fees, costs and expenses of whatever kind or nature incurred in connection with the creation,
preservation or protection of the Administrative Agent’s Liens on, and security interest in, the Collateral, including, without limitation, all fees and taxes in connection with the recording or filing of instruments and documents in public
offices, payment or discharge of any taxes or Liens upon or in respect of the Collateral, premiums for insurance with respect to the Collateral and all other fees, costs and expenses in connection with protecting, maintaining or preserving the
Collateral and the Administrative Agent’s interest therein, whether through judicial proceedings or otherwise, or in defending or prosecuting any actions, suits or proceedings arising out of or relating to the Collateral. 

(c) If and to the extent that the obligations of any Assignor under this Section 6.1 are unenforceable for any reason, such
Assignor hereby agrees to make the maximum contribution to the payment and satisfaction of such obligations which is permissible under applicable law. 

  
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 6.2. Indemnity Obligations Secured by Collateral; Survival. Any amounts paid by any
Indemnitee as to which such Indemnitee has the right to reimbursement shall constitute Obligations secured by the Collateral. The indemnity obligations of each Assignor contained in this Article VI shall continue in full force and effect
notwithstanding the full payment of all of the other Obligations and notwithstanding the full payment of all the Notes issued, and Loans made, under the Credit Agreement, the termination of all Letters of Credit (and the full payment of all Unpaid
Drawings) issued under the Credit Agreement, the termination of all Secured Hedging Agreements entered into with the Specified Creditors, the termination of all Treasury Services Agreements entered into with the Treasury Services Creditors and the
payment of all other Obligations and notwithstanding the discharge thereof and the occurrence of the Termination Date. 
 ARTICLE
VII 
 DEFINITIONS 
 The following terms shall have the meanings herein specified. Such definitions shall be equally applicable to the singular and plural forms of the terms defined. 

“Account” shall mean any “account” as such term is defined in the Uniform Commercial Code as in effect on the
Closing Date in the State of New York, and in any event shall include but shall not be limited to, all rights to payment of any monetary obligation, whether or not earned by performance, (i) for property that has been or is to be sold, leased,
licensed, assigned or otherwise disposed of, (ii) for services rendered or to be rendered, (iii) for a policy of insurance issued or to be issued, (iv) for a secondary obligation incurred or to be incurred, (v) for energy
provided or to be provided, (vi) for the use or hire of a vessel under a charter or other contract, (vii) arising out of the use of a credit or charge card or information contained on or for use with the card, or (viii) as winnings in
a lottery or other game of chance operated or sponsored by a State, governmental unit of a State, or person licensed or authorized to operate the game by a State or governmental unit of a State. 

“Administrative Agent” shall have the meaning provided in the first paragraph of this Agreement. 

“Agreement” shall mean this U.S. Security Agreement, as the same may be amended, modified, restated and/or supplemented
from time to time in accordance with its terms. 
 “Aleris” shall have the meaning provided in the recitals of
this Agreement. 
 “Assignor” shall have the meaning provided in the first paragraph of this Agreement.

 “Borrowers” shall have the meaning provided in the recitals to this Agreement. 

“Cash Collateral Account” shall mean a non-interest bearing cash collateral account maintained with, and in the sole
dominion and control of, the Administrative Agent for the benefit of the Secured Creditors. 

  
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 “Chattel Paper” shall mean “chattel paper” as such term is
defined in the Uniform Commercial Code as in effect on the Closing Date in the State of New York. Without limiting the foregoing, the term “Chattel Paper” shall in any event include all Tangible Chattel Paper and all Electronic Chattel
Paper. 
 “Collateral” shall have the meaning provided in Section 1.1 (a) of this Agreement.

 “Commercial Tort Claims” shall mean “commercial tort claims” as such term is defined in the
Uniform Commercial Code as in effect on the date hereof in the State of New York. 
 “Contract Rights” shall
mean all rights of any Assignor under each Contract, including, without limitation, (i) any and all rights to receive and demand payments under any or all Contracts, (ii) any and all rights to receive and compel performance under any or
all Contracts and (iii) any and all other rights, interests and claims now existing or in the future arising in connection with any or all Contracts. 
 “Contracts” shall mean all contracts between any Assignor and one or more additional parties (including, without limitation, any Secured Hedging Agreements, Treasury Services Agreements,
licensing agreements and any partnership agreements, joint venture agreements and limited liability company agreements). 

“Credit Agreement” shall have the meaning provided in the recitals of this Agreement. 

“Credit Document Obligations” shall mean the full and prompt payment when due (whether at stated maturity, by
acceleration or otherwise) of all Obligations, liabilities and indebtedness (including, without limitation, unpaid principal, premium, interest (including, without limitation, all interest that accrues after the commencement of any case, proceeding
or other action relating to the bankruptcy, insolvency, reorganization or similar proceeding of any Assignor at the rate provided for in the respective documentation, whether or not a claim for post-petition interest is allowed in any such
proceeding), reimbursement obligations under Letters of Credit, fees, costs and indemnities) of such Assignor to the Lender Creditors, whether now existing or hereafter incurred under, arising out of, or in connection with, the Credit Agreement and
the other Credit Documents to which such Assignor is a party (including, without limitation, in the event such Assignor is a Guarantor, all such obligations, liabilities and indebtedness of such Assignor under its Guaranty) and the due performance
and compliance by such Assignor with all of the terms, conditions and agreements contained in the Credit Agreement and in such other Credit Documents, except to the extent consisting of Obligations or indebtedness with respect to Secured Hedging
Agreements and Treasury Services Obligations. 
 “Deposit Accounts” shall mean all “deposit accounts”
as such term is defined in the Uniform Commercial Code as in effect on the Closing Date in the State of New York. 

“Documents” shall mean “documents” as such term is defined in the Uniform Commercial Code as in effect on the
Closing Date in the State of New York. 

  
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 “Electronic Chattel Paper” shall mean “electronic chattel paper”
as such term is defined in the Uniform Commercial Code as in effect on the Closing Date in the State of New York. 

“Equipment” shall mean any “equipment” as such term is defined in the Uniform Commercial Code as in effect on
the Closing Date in the State of New York, and in any event, shall include, but shall not be limited to, all machinery, equipment, furnishings, fixtures and vehicles now or hereafter owned by any Assignor and any and all additions, substitutions and
replacements of any of the foregoing and all accessions thereto, wherever located, together with all attachments, components, parts, equipment and accessories installed thereon or affixed thereto. 

“Excluded Accounts” shall mean Exempted Deposit Accounts and Exempted Disbursement Accounts. 

“Event of Default” shall mean (i) at any time when any Credit Document Obligations are outstanding or any
Commitments under the Credit Agreement exist, any Event of Default under, and as defined in, the Credit Agreement, and (ii) at any time after all of the Credit Document Obligations have been paid in full and all Commitments under the Credit
Agreement have been terminated and no further Commitments may be provided thereunder, any payment default or any of the Obligations after the expiration of any applicable grace period. 

“General Intangibles” shall mean “general intangibles” as such term is defined in the Uniform Commercial Code
as in effect on the Closing Date in the State of New York. 
 “Indemnitee” shall have the meaning provided in
Section 6.1(a) of this Agreement. 
 “Instrument” shall mean “instruments” as such term
is defined in the Uniform Commercial Code as in effect on the Closing Date in the State of New York. 

“Inventory” shall mean merchandise, inventory and goods, and all additions, substitutions and replacements thereof and
all accessions thereto, wherever located, together with all goods, supplies, incidentals, packaging materials, labels, materials and any other items used or usable in manufacturing, processing, packaging or shipping same, in all stages of production
from raw materials through work in process to finished goods, and all products and proceeds of whatever sort and wherever located any portion thereof which may be returned, rejected, reclaimed or repossessed by the Administrative Agent from any
Assignor’s customers, and shall specifically include all “inventory” as such term is defined in the Uniform Commercial Code as in effect on the Closing Date in the State of New York. 

“Lender Creditors” shall have the meaning provided in the recitals of this Agreement. 

“Lenders” shall have the meaning provided in the recitals of this Agreement. 

  
 20 

 “Letter-of-Credit Rights” shall mean “letter-of-credit rights” as
such term is defined in the Uniform Commercial Code as in effect on the Closing Date hereof in the State of New York. 

“Location” of any Assignor, shall mean such Assignor’s “location” as determined pursuant to
Section 9-307 of the UCC. 
 “Person” shall mean any individual, partnership, joint venture, firm,
corporation, association, limited liability company, trust or other enterprise or any government or political subdivision or any agency, department or instrumentality thereof. 
 “Proceeds” shall mean all “proceeds” as such term is defined in the Uniform Commercial Code as in effect in the State of New York on the Closing Date and, in any event, shall
also include, but not be limited to, (i) any and all proceeds of any insurance, indemnity, warranty or guaranty payable to the Administrative Agent or any Assignor from time to time with respect to any of the Collateral, (ii) any and all
payments (in any form whatsoever) made or due and payable to any Assignor from time to time in connection with any requisition, confiscation, condemnation, seizure or forfeiture of all or any part of the Collateral by any governmental authority (or
any person acting under color of governmental authority) and (iii) any and all other amounts from time to time paid or payable under or in connection with any of the Collateral. 

“Records” shall mean any “record” as such term is defined in the Uniform Commercial Code as in effect on the
Closing Date in the State of New York. 
 “Registered Organization” shall have the meaning provided in the
Uniform Commercial Code as in effect in the State of New York. 
 “Required Secured Creditors” shall mean
(i) at any time when any Credit Document Obligations are outstanding or any Commitments under the Credit Agreement exist, the Required Lenders (or, to the extent provided in Section 13.12 of the Credit Agreement, each of the
Lenders) and (ii) at any time after all of the Credit Document Obligations have been paid in full and all Commitments under the Credit Agreement have been terminated and no further Commitments may be provided thereunder, the holders of a
majority of the Other Obligations and Treasury Services Obligations (taken as a whole). 
 “Secured Creditors”
shall have the meaning provided in the recitals of this Agreement. 
 “Secured Debt Agreements” shall mean and
include this Agreement, the other Credit Documents, the Secured Hedging Agreements entered into with a Specified Creditor, the Treasury Services Agreements entered into with a Treasury Services Creditor and any intercreditor agreement entered into
by the Administrative Agent with a Specified Creditor. 
 “Specified Creditors” shall have the meaning provided
in the recitals of this Agreement. 

  
 21 

 “Subsidiary” shall mean, as to any Person, (i) any corporation more
than 50% of whose stock of any class or classes having by the terms thereof ordinary voting power to elect a majority of the directors of such corporation (irrespective of whether or not at the time stock of any class or classes of such corporation
shall have or might have voting power by reason of the happening of any contingency) is at the time owned by such Person and/or one or more Subsidiaries of such Person and (ii) any partnership, limited liability company, association, joint
venture or other entity in which such Person and/or one or more Subsidiaries of such Person has more than a 50% equity interest at the time. 
 “Supporting Obligations” shall mean any “supporting obligation” as such term is defined in the Uniform Commercial Code as in effect on the Closing Date in the State of New York,
now or hereafter owned by any Assignor, or in which any Assignor has any rights, and, in any event, shall include, but shall not be limited to all of such Assignor’s rights in any Letter-of-Credit Right or secondary obligation that supports the
payment or performance of, and all security for, any Collateral consisting of Accounts, Chattel Paper, Documents, General Intangibles, Instruments or Investment Properties. 
 “Tangible Chattel Paper” shall mean “tangible chattel paper” as such term is defined in the Uniform Commercial Code as in effect on the Closing Date in the State of
New York. 
 “Termination Date” shall have the meaning provided in Section 8.8(a) of this
Agreement. 
 “Transmitting Utility” shall have the meaning given such term in Section 9-102(a)(80) of the
UCC. 
 “Treasury Services” shall have the meaning provided in the recitals of this Agreement. 

“Treasury Services Agreement” shall have the meaning provided in the recitals of this Agreement. 

“Treasury Services Creditors” shall have the meaning provided in the recitals of this Agreement. 

“Treasury Services Obligations” shall mean all obligations, liabilities and indebtedness (including, without limitation,
all interest that accrues after the commencement of any case, proceeding or other action relating to the bankruptcy, insolvency, reorganization or similar proceeding at the rate provided for in the respective documentation, whether or not such
interest is allowed in any such proceeding) owing by Aleris or any of its Subsidiaries to each Treasury Services Creditor with respect to Treasury Services, whether now in existence or hereafter arising in each case under any Treasury Services
Agreement. 
 “UCC” shall mean the Uniform Commercial Code as in effect in the State of New York from time to
time; provided that all references herein to specific Sections or subsections of the UCC are references to such Sections or subsections, as the case may be, of the Uniform Commercial Code as in effect in the State of New York on the Closing
Date; provided, further, 

  
 22 

 
that if by reason of mandatory provisions of law, the perfection, the effect of perfection or non-perfection or the priority of the Liens of the Administrative Agent in any Collateral is governed
by the Uniform Commercial Code as in effect in a jurisdiction other than New York, “UCC” shall mean the Uniform Commercial Code as in effect in such other jurisdiction for purposes of the provisions hereof relating to such perfection,
effect of perfection or non-perfection or priority. 
 ARTICLE VIII 

MISCELLANEOUS 

8.1. Notices. Except as otherwise specified herein, all notices, requests, demands or other communications to or upon the
respective parties hereto shall be sent or delivered by mail, telegraph, telex, telecopy, cable or courier service and all such notices and communications shall, when mailed, telegraphed, telexed, telecopied, or cabled or sent by courier, be
effective when deposited in the mails, delivered to the telegraph company, cable company or overnight courier, as the case may be, or sent by telex or telecopier, except that notices and communications to the Administrative Agent or any Assignor
shall not be effective until received by the Administrative Agent or such Assignor, as the case may be. All notices and other communications shall be in writing and addressed as follows: 

(a) if to any Assignor, c/o: 
 Aleris International, Inc. 
 25825 Science Park Drive, Suite 400 

Beachwood, OH 44122 
 Attention: General Counsel 
 Telephone No.: (216) 910-3400 

Telecopier No.: (216) 910-3650 
 (b) if to the Administrative Agent or the Administrative Agent, at: 
 Bank of
America, N.A. 
 300 Galleria Parkway Suite 800 
 Atlanta, Georgia 30339 
 Attention: Loan Administration Manager 

Telephone No.: (404) 607-3234 
 Telecopier No.: (404) 607-3277 
 (c) if to any Lender Creditor
other than the Administrative Agent, at such address as such Lender Creditor shall have specified in the Credit Agreement; 
 (d) if to any Specified Creditor, at such address as such Specified Creditor shall have specified in writing to Aleris and the Administrative Agent; 

  
 23 

 (e) if to any Treasury Services Creditor, at such address as such Treasury
Services Creditor shall have specified in writing to Aleris and the Administrative Agent; 
 or at such other address or addressed to such other
individual as shall have been furnished in writing by any Person described above to the party required to give notice hereunder. 
 8.2. Waiver; Amendment. None of the terms and conditions of this Agreement (or, to the extent any other Security Document requires waivers or amendments thereunder to occur in accordance with the
provisions of this Agreement, such other Security Document) may be changed, waived, modified or varied in any manner whatsoever unless in writing duly signed by each Assignor (or, to the extent any other Security Document requires waivers or
amendments thereunder to occur in accordance with the provisions of this Agreement, the pledgor, transferor, mortgagor or other corresponding party under such other Security Document) directly affected thereby and the Administrative Agent (or, to
the extent any other Security Document requires waivers or amendments thereunder to occur in accordance with the provisions of this Agreement, the collateral agent or mortgagee under such other Security Document) (with the written consent of the
Required Secured Creditors); provided, that, (x) additional Assignors may be added as parties hereto from time to time in accordance with Section 8.12 (or the corresponding section in such other Security Document)
without the consent of any other Assignor or of the Secured Creditors, and (y) Assignors may be removed as parties hereto from time to time in accordance with Section 8.13 (or the corresponding section in such other Security
Document), without the consent of any other Assignor or of the Secured Creditors. 
 8.3. Obligations Absolute. The
obligations of each Assignor hereunder shall remain in full force and effect without regard to, and shall not be impaired by, (a) any bankruptcy, insolvency, reorganization, arrangement, readjustment, composition, liquidation or the like of
such Assignor; (b) any exercise or non-exercise, or any waiver of, any right, remedy, power or privilege under or in respect of this Agreement or any other Secured Debt Agreement; or (c) any amendment to or modification of any Secured Debt
Agreement or any security for any of the Obligations (in each case), whether or not such Assignor shall have notice or knowledge of any of the foregoing. 
 8.4. Successors and Assigns. This Agreement shall create a continuing security interest in the Collateral and shall (i) remain in full force and effect, subject to release and/or termination
as set forth in Section 8.8, (ii) be binding upon each Assignor, its successors and assigns, provided however, that no Assignor shall assign any of its rights or obligations hereunder without the prior written consent of the
Administrative Agent (with the prior written consent of the Required Secured Creditors), and (iii) inure, together with the rights and remedies of the Administrative Agent hereunder, to the benefit of the Administrative Agent, the other Secured
Creditors and their respective successors, transferees and assigns. All agreements, statements, representations and warranties made by each Assignor herein or in any certificate or other instrument delivered by such Assignor or on its behalf under
this Agreement shall be considered to have been relied upon by the Secured Creditors and shall survive the execution and delivery of this Agreement and the other Secured Debt Agreements regardless of any investigation made by the Secured Creditors
or on their behalf. 

  
 24 

 8.5. Headings Descriptive. The headings of the several sections of this Agreement are
inserted for convenience only and shall not in any way affect the meaning or construction of any provision of this Agreement. 

8.6. GOVERNING LAW; SUBMISSION TO JURISDICTION; VENUE; WAIVER OF JURY TRIAL. (a) THIS AGREEMENT AND THE RIGHTS AND
OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE CONSTRUED IN ACCORDANCE WITH AND BE GOVERNED BY THE LAW OF THE STATE OF NEW YORK. ANY LEGAL ACTION OR PROCEEDING WITH RESPECT TO THIS AGREEMENT OR ANY OTHER CREDIT DOCUMENT MAY BE BROUGHT IN THE COURTS
OF THE STATE OF NEW YORK OR OF THE UNITED STATES FOR THE SOUTHERN DISTRICT OF NEW YORK, AND, BY EXECUTION AND DELIVERY OF THIS AGREEMENT, EACH ASSIGNOR HEREBY IRREVOCABLY ACCEPTS FOR ITSELF AND IN RESPECT OF ITS PROPERTY, GENERALLY AND
UNCONDITIONALLY, THE NON-EXCLUSIVE JURISDICTION OF THE AFORESAID COURTS. EACH ASSIGNOR HEREBY FURTHER IRREVOCABLY WAIVES ANY CLAIM THAT ANY SUCH COURTS LACK JURISDICTION OVER SUCH ASSIGNOR, AND AGREES NOT TO PLEAD OR CLAIM IN ANY LEGAL ACTION OR
PROCEEDING WITH RESPECT TO THIS AGREEMENT OR ANY OTHER CREDIT DOCUMENT BROUGHT IN ANY OF THE AFORESAID COURTS THAT ANY SUCH COURT LACKS JURISDICTION OVER SUCH ASSIGNOR. EACH ASSIGNOR FURTHER IRREVOCABLY CONSENTS TO THE SERVICE OF PROCESS OUT OF ANY
OF THE AFOREMENTIONED COURTS IN ANY SUCH ACTION OR PROCEEDING BY THE MAILING OF COPIES THEREOF BY REGISTERED OR CERTIFIED MAIL, POSTAGE PREPAID, TO ANY SUCH ASSIGNOR AT ITS ADDRESS FOR NOTICES AS PROVIDED IN SECTION 8.1 ABOVE, SUCH
SERVICE TO BECOME EFFECTIVE THIRTY (30) DAYS AFTER SUCH MAILING. EACH ASSIGNOR HEREBY IRREVOCABLY WAIVES ANY OBJECTION TO SUCH SERVICE OF PROCESS AND FURTHER IRREVOCABLY WAIVES AND AGREES NOT TO PLEAD OR CLAIM IN ANY ACTION OR PROCEEDING
COMMENCED HEREUNDER OR UNDER ANY OTHER CREDIT DOCUMENT THAT SUCH SERVICE OF PROCESS WAS IN ANY WAY INVALID OR INEFFECTIVE. NOTHING HEREIN SHALL AFFECT THE RIGHT OF THE ADMINISTRATIVE AGENT UNDER THIS AGREEMENT, OR ANY SECURED CREDITOR, TO SERVE
PROCESS IN ANY OTHER MANNER PERMITTED BY LAW OR TO COMMENCE LEGAL PROCEEDINGS OR OTHERWISE PROCEED AGAINST ANY ASSIGNOR IN ANY OTHER JURISDICTION. 
 (b) EACH ASSIGNOR HEREBY IRREVOCABLY WAIVES ANY OBJECTION WHICH IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY OF THE AFORESAID ACTIONS OR PROCEEDINGS ARISING OUT OF OR IN CONNECTION WITH THIS
AGREEMENT OR ANY OTHER CREDIT DOCUMENT BROUGHT IN THE COURTS REFERRED TO IN CLAUSE (a) ABOVE AND HEREBY FURTHER IRREVOCABLY WAIVES AND AGREES NOT TO PLEAD OR CLAIM IN ANY SUCH COURT THAT ANY SUCH ACTION OR PROCEEDING BROUGHT IN ANY SUCH COURT
HAS BEEN BROUGHT IN AN INCONVENIENT FORUM. 
 (c) EACH OF THE PARTIES TO THIS AGREEMENT HEREBY IRREVOCABLY WAIVES ALL RIGHT TO A
TRIAL BY JURY IN ANY ACTION, 

  
 25 

 
PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR RELATING TO THIS AGREEMENT, THE OTHER CREDIT DOCUMENTS OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY. 

8.7. Assignors’ Duties. It is expressly agreed, anything herein contained to the contrary notwithstanding, that each Assignor
shall remain liable to perform all of the obligations, if any, assumed by it with respect to the Collateral and the Administrative Agent shall not have any obligations or liabilities with respect to any Collateral by reason of or arising out of this
Agreement, nor shall the Administrative Agent be required or obligated in any manner to perform or fulfill any of the obligations of any Assignor under or with respect to any Collateral. 

8.8. Termination; Release. (a) After the Termination Date, this Agreement (or, to the extent any other Security Document
requires termination or releases thereunder to occur in accordance with the provisions of this Agreement, such other Security Document) shall terminate (provided, that all indemnities set forth herein including, without limitation in
Section 8.1 hereof, shall survive such termination) and the Administrative Agent (or, to the extent any other Security Document requires termination or releases thereunder to occur in accordance with the provisions of this Agreement, the
collateral agent or mortgagee under such other Security Document), at the request and expense of the respective Assignor (or, to the extent any other Security Document requires termination or releases thereunder to occur in accordance with the
provisions of this Agreement, the pledgor, transferor, mortgagor or other corresponding party under such other Security Document), will promptly execute and deliver to such Assignor a proper instrument or instruments (including Uniform Commercial
Code termination statements on form UCC-3) acknowledging the satisfaction and termination of this Agreement, and will duly assign, transfer and deliver to such Assignor (without recourse and without any representation or warranty) such of the
Collateral as may be in the possession of the Administrative Agent or any of its sub-agents hereunder and as has not theretofore been sold or otherwise applied or released pursuant to this Agreement. As used in this Agreement, “Termination
Date” shall mean the date upon which the Total Commitment under the Credit Agreement has been terminated, no Letter of Credit or Note (as defined in the Credit Agreement) is outstanding (and all Loans and Unpaid Drawings have been paid in
full), all Letters of Credit have been terminated, all Obligations under Secured Hedging Agreements and Treasury Services Agreements and all other Obligations (other than indemnities under the Debt Agreements which are not then due and payable) have
been paid in full and all Secured Hedging Agreements have been terminated. 
 (b) In the event that any part of the Collateral
(as defined in the Credit Agreement) is directly or indirectly sold or otherwise disposed of (to a Person other than a U.S. Credit Party) (x) at any time prior to the time at which all Credit Document Obligations have been paid in full and all
Commitments and Letters of Credit under the Credit Agreement have been terminated, in connection with a sale or disposition permitted by Section 8.02 of the Credit Agreement or is otherwise released at the direction of the Required
Lenders (or all the Lenders if required by Section 13.12 of the Credit Agreement) or (y) at any time thereafter, to the extent permitted by the other Secured Debt Agreements, and in the case of clauses (x) and (y), and the
proceeds of such sale or disposition (or from such release) are applied in accordance with the terms of the Credit Agreement or such other Secured Debt Agreement, as the case may be, to the extent required to be so applied, the Administrative Agent,
at the request and expense of Aleris, 

  
 26 

 
will duly release from the security interest created hereby (or, to the extent any other Security Document requires releases thereunder to occur in accordance with the provisions of this
Agreement, from the security interest created by such other Security Document) (and will execute and deliver such documentation, including termination or partial release statements and the like in connection therewith) and assign, transfer and
deliver to Aleris, on behalf of the applicable Assignor, (without recourse and without any representation or warranty) such of the Collateral as is then being (or has been) so sold or otherwise disposed of, or released, and as may be in the
possession of the Administrative Agent (or any of its sub-agents hereunder) and has not theretofore been released pursuant to this Agreement. Furthermore, upon the release of any Guarantor from any Guaranty in accordance with the provisions thereof
or in accordance with Section 13.12(b) of the Credit Agreement, such Assignor (or, to the extent any other Security Document requires releases thereunder to occur in accordance with the provisions of this Agreement, the assignor, grantor
or pledgor under such other Security Document) (and the Collateral at such time assigned by the respective Assignor, grantor, pledgor or assignor pursuant hereto or pursuant to such other Security Document) shall be released from this Agreement (or,
to the extent any other Security Document requires releases thereunder to occur in accordance with the provisions of this Agreement, from such other Security Document). 
 (c) At any time that an Assignor desires that the Administrative Agent take any action to acknowledge or give effect to any release of Collateral pursuant to the foregoing Section 8.8(a) or
(b), such Assignor shall deliver to the Administrative Agent (and the relevant sub-agent, if any, designated hereunder) a certificate signed by a principal executive officer of such Assignor stating that the release of the respective Collateral
is permitted pursuant to such Section 8.8(a) or (b). At any time that any U.S. Borrower or the respective Assignor desires that a Subsidiary of such U.S. Borrower which has been released from the U.S. Subsidiaries Guaranty be released
hereunder as provided in the penultimate sentence of Section 8.8(b), it shall deliver to the Administrative Agent a certificate signed by a principal executive officer of such U.S. Borrower and the respective Assignor stating that the
release of the respective Assignor (and its Collateral) is permitted pursuant to such Section 8.8(b). 
 (d) The
Administrative Agent shall have no liability whatsoever to any other Secured Creditor as the result of any release of Collateral by it in accordance with, or which the Administrative Agent believes to be in accordance with, this
Section 8.8. 
 8.9. Counterparts. This Agreement may be executed in any number of counterparts and by the
different parties hereto on separate counterparts, each of which when so executed and delivered shall be an original, but all of which shall together constitute one and the same instrument. A set of counterparts executed by all the parties hereto
shall be lodged with the Borrower and the Administrative Agent. 
 8.10. Severability. Any provision of this Agreement
which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or
unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction. 

  
 27 

 8.11. The Administrative Agent and the other Secured Creditors. The Administrative
Agent will hold in accordance with this Agreement all items of the Collateral at any time received under this Agreement. It is expressly understood and agreed that the obligations of the Administrative Agent as holder of the Collateral and interests
therein and with respect to the disposition thereof, and otherwise under this Agreement, are only those expressly set forth in this Agreement. The Administrative Agent shall act hereunder on the terms and conditions set forth herein and in
Annex D hereto, the terms of which shall be deemed incorporated herein by reference as fully as if same were set forth herein in their entirety. 
 8.12. Additional Assignors. It is understood and agreed that any Subsidiary Guarantor that desires to become an Assignor hereunder, or is required to execute a counterpart of this Agreement after
the Closing Date pursuant to the requirements of the Credit Agreement or any other Credit Document, shall become an Assignor hereunder by executing a counterpart hereof and delivering same to the Administrative Agent, or by executing a joinder
agreement in form and substance satisfactory to the Administrative Agent, (y) delivering supplements to Annexes A through D hereto as are necessary to cause such Annexes to be complete and accurate with respect to such
additional Assignor on such date and (z) taking all actions as specified in this Agreement as would have been taken by such Assignor had it been an original party to this Agreement, in each case with all documents required above to be delivered
to the Administrative Agent and with all documents and actions required above to be taken to the reasonable satisfaction of the Administrative Agent. 
 8.13. Calculation of Obligations under Secured Hedging Agreements. Any calculation of obligations outstanding under a Secured Hedging Agreement for purposes of this Agreement or any other Security
Document shall be (i) for purposes of the definition of Required Secured Creditors (x) if prior to the termination of such Secured Hedging Agreement, the maximum aggregate amount (giving effect to any netting agreements) that Aleris and
the Assignors would be required to pay if such Secured Hedging Agreement were terminated at such time, and (y) if after the termination of such Secured Hedging Agreements, the amount which is actually due and payable by Aleris and the Assignors
under such Secured Hedging Agreement at such time and (ii) for purposes of Section 5 of this Agreement, the amount which is actually due and payable by Aleris and the Assignors under such Secured Hedging Agreement at such time.

 [Remainder of this page intentionally left blank; signature pages follow] 

  
 28 

 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed and
delivered by their duly authorized officers as of the date first above written. 
 Each Assignor’s address is as listed 

on Annex B attached hereto 
  

			
	ALERIS INTERNATIONAL, INC., a Delaware corporation (formerly known as AHC Intermediate Co.), as an Assignor
		
	By:	 	/s/ Sean M. Stack
		 	Sean M. Stack, Executive Vice President
	
	ALERIS ROLLED PRODUCTS, INC., a Delaware corporation (formerly known as RLD Acquisition Co.), as an Assignor
		
	By:	 	/s/ Sean M. Stack
		 	Sean M. Stack, President
	
	ALERIS ROLLED PRODUCTS, LLC, a Delaware limited liability company, as an Assignor
		
	By:	 	/s/ Sean M. Stack
		 	Sean M. Stack, President
	
	ALERIS ROLLED PRODUCTS SALES CORPORATION, a Delaware corporation, as an Assignor
		
	By:	 	/s/ Sean M. Stack
		 	Sean M. Stack, President
	
	IMCO RECYCLING OF OHIO, LLC, a Delaware limited liability company, as an Assignor
		
	By:	 	/s/ Sean M. Stack
		 	Sean M. Stack, President

[Signatures continue on the following page.] 
 U. S. Security Agreement (Aleris) 

 
			
	ALERIS RECYCLING, INC., a Delaware corporation (formerly known as RCY Acquisition Co.), as an Assignor
		
	By:	 	/s/ Sean M. Stack
		 	Sean M. Stack, President
	
	ALERIS SPECIFICATION ALLOYS, INC., a Delaware corporation (formerly known as SPEC A Acquisition Co.), as an Assignor
		
	By:	 	/s/ Sean M. Stack
		 	Sean M. Stack, President
	
	ALERIS SPECIALTY PRODUCTS, INC., a Delaware corporation (formerly known as SPEC P Acquisition Co.), as an Assignor
		
	By:	 	/s/ Sean M. Stack
		 	Sean M. Stack, President
	
	 ALERIS RECYCLING BENS RUN, LLC,
 a Delaware limited liability company (formerly known as ARBR Acquisition, LLC), as an Assignor

		
	By:	 	/s/ Sean M. Stack
		 	Sean M. Stack, President
	
	ETS SCHAEFER, LLC, an Ohio limited liability company, as an Assignor
		
	By:	 	/s/ Sean M. Stack
		 	Sean M. Stack, President

[Signatures continue on the following page.] 
 U. S. Security Agreement (Aleris) 

 
			
	 ALERIS OHIO MANAGEMENT, INC.,
 a Delaware corporation (formerly known as HQ1 Acquisition Co.), as an Assignor

		
	By:	 	/s/ Sean M. Stack
		 	Sean M. Stack, President

[Signatures continue on the following page.] 
 U. S. Security Agreement (Aleris) 

					
	Accepted and Agreed to:
	
	BANK OF AMERICA, N.A., as Administrative Agent
		
	By:	 	/s/ John Yankauskas
		 	Name:	 	John Yankauskas
		 	Title:	 	Senior Vice President

 U. S. Security Agreement (Aleris)Facility Agreement

 Exhibit 10.4 
 Execution Version 
 FACILITY AGREEMENT

 MULTI-CURRENCY SECURED REVOLVING / TERM
LOAN FACILITIES OF UP TO: 

FACILITY A (TERM): US$100,000,000 

FACILITY B (TERM): RMB 532,000,000 

FACILITY C (REVOLVING): COMBINED USD/RMB FACILITY IN
THE AGGREGATE AMOUNT 
 EQUIVALENT TO
US$35,000,000 (OR EQUIVALENT TO RMB 232,750,000) 
 MARCH 29,
2011 
 BETWEEN 
 ALERIS DINGSHENG ALUMINUM (ZHENJIANG) CO., LTD. 

 

 

 as the Borrower 
 AND 
 BANK OF
CHINA LIMITED, ZHENJIANG JINGKOU SUB-BRANCH 

 

 

 as the Lender 
  

 
 SNR DENTON 

Suite 3201 Jardine House 
 1 Connaught Place, Central Hong Kong 
 People’s Republic of China 

 Execution Version 

TABLE OF CONTENTS 

 

							
	SECTION	  		  	 	PAGE	  
			
	1.	  	DEFINITIONS AND INTERPRETATION	  	 	1	  
			
	2.	  	FACILITIES	  	 	8	  
			
	3.	  	TENOR AND PURPOSE	  	 	8	  
			
	4.	  	CONDITIONS PRECEDENT TO UTILISATION	  	 	9	  
			
	5.	  	UTILISATION	  	 	9	  
			
	6.	  	REPAYMENT	  	 	11	  
			
	7.	  	PREPAYMENT AND CANCELLATION	  	 	13	  
			
	8.	  	INTEREST RATE AND INTEREST PERIOD	  	 	14	  
			
	9.	  	DEFAULT INTEREST	  	 	15	  
			
	10.	  	CHANGES IN THE CALCULATION OF INTEREST	  	 	15	  
			
	11.	  	FEES	  	 	16	  
			
	12.	  	TAXES	  	 	17	  
			
	13.	  	INDEMNITIES	  	 	17	  
			
	14.	  	COSTS AND EXPENSES	  	 	17	  
			
	15.	  	REPRESENTATIONS AND WARRANTIES	  	 	17	  
			
	16.	  	COVENANTS AND UNDERTAKINGS	  	 	18	  
			
	17.	  	EVENTS OF DEFAULT	  	 	22	  
			
	18.	  	REMEDIES	  	 	23	  
			
	19.	  	TRANSFERS AND PARTICIPATION	  	 	23	  
			
	20.	  	CHANGES IN OBLIGORS	  	 	25	  
			
	21.	  	PAYMENT MECHANICS	  	 	26	  
			
	22.	  	NOTICES	  	 	27	  
			
	23.	  	DISCLOSURE	  	 	28	  
			
	24.	  	DAY COUNT CONVENTION	  	 	29	  
			
	25.	  	PARTIAL INVALIDITY	  	 	29	  
			
	26.	  	AMENDMENTS AND WAIVERS	  	 	29	  
			
	27.	  	COUNTERPARTS	  	 	29	  
			
	28.	  	GOVERNING LAW AND JURISDICTION	  	 	29	  
		
	 SCHEDULE 1 LENDER AND COMMITMENTS
	  	 	31	  
		
	 SCHEDULE 2 CONDITIONS PRECEDENT
	  	 	32	  
		
	 SCHEDULE 3 FORM OF UTILISATION
REQUEST
	  	 	35	  

					
		
	 SCHEDULE 4 LIST OF COMPETITORS
	  	 	36	  
		
	 EXHIBIT A INITIAL DRAWDOWN SCHEDULE
	  	 	37	  

 THIS FACILITY AGREEMENT (this
“Agreement”) is dated March 29, 2011 and made between: 
  

	(1)	Aleris Dingsheng Aluminum (Zhenjiang) Co., Ltd.

, a Sino-foreign joint venture company established under the laws of the People’s Republic of China, as the borrower (the “Borrower”); and 

  

	(2)	Bank of China Limited, Zhenjiang Jingkou Sub-Branch

, as the lender (the “Lender”). 

 IT IS AGREED as follows: 

 

	1.	DEFINITIONS AND INTERPRETATION 

 

	1.1	Definitions 

 In this
Agreement: 

 “Account Bank” means Bank of China Limited, Zhenjiang Jingkou Sub-Branch

. 

 “Additional Financing” has the meaning set forth in Section 16.3(a). 

“Affiliate” means, in respect of any person, a Subsidiary of that person or a Holding Company of that person or any other
Subsidiary of that Holding Company. 
 “Aleris Asia” means Aleris Asia Pacific Limited. 

“Assets Mortgage Agreement” means the assets mortgage agreement to be entered into between the Borrower and the Lender.

 “Availability Period” means: 
  

	 	(a)	in relation to Facility A and Facility B, the period commencing on the date hereof to and including the date that is the earlier of (i) January 1, 2015 and
(ii) the Completion Date; and 

  

	 	(b)	in relation to Facility C, the period commencing on the date hereof to and including the Final Maturity Date. 

“Available Facility” means, in relation to a Facility, the aggregate for the time being of the Available Facility A
Commitment, Available Facility B Commitment and/or Available Facility C Commitment. 
 “Available Facility A
Commitment” means the Facility A Commitment for the time being that has been committed to by the Lender minus: 
  

	 	(a)	the amount of any outstanding Loans that have been disbursed to the Borrower under Facility A; 

 

	 	(b)	in relation to any proposed Utilisation pursuant to an executed Utilization Request, the amount of any Loans that are due to be made under Facility A on or before the
proposed Utilisation Date; and 

  

	 	(c)	any Loans disbursed under Facility A that have been repaid. 

 “Available Facility B Commitment” means the Facility B Commitment for the time being that has been committed to by the Lender minus: 

  
 1 

	 	(a)	the amount of any outstanding Loans under Facility B that have been disbursed to the Borrower; 

 

	 	(b)	in relation to any proposed Utilisation pursuant to an executed Utilization Request, the amount of any Loans that are due to be made under Facility B on or before the
proposed Utilisation Date; and 

  

	 	(c)	any Loans disbursed under Facility B that have been repaid. 

 “Available Facility C Commitment” means the Facility C Commitment for the time being that has been committed to by the Lender minus: 

 

	 	(a)	the amount of any outstanding Loans under Facility C that have been disbursed to the Borrower; and 

 

	 	(b)	in relation to any proposed Utilisation pursuant to an executed Utilization Request, the amount of any Loans that are due to be made under Facility C on or before the
proposed Utilisation Date. 

 “Base Rate” means: 

 

	 	(a)	in respect of a Facility A Loan, six (6) month USD LIBOR; and 

  

	 	(b)	in respect of a USD Revolving Loan, three (3) month USD LIBOR. 

 “Business Day” means a day (other than Saturday, Sunday and statutory PRC holidays) on which banks are open for general business in Zhenjiang, Jiangsu, and (a) in case a payment in
US Dollars is involved, a day on which the commercial banks in New York are open for business in New York and (b) in case the determination of LIBOR is involved, a day on which the commercial banks in London are open for business in London.

 “Comfort Letter” means that certain letter to be entered into on or about the date hereof, by the
Shareholders and addressed to the Lender. 
 “Commitments” mean the aggregate of the Facility A Commitment, the
Facility B Commitment, and the Facility C Commitment. 
 “Completion Date” means the latest date on which any of
the following requirements has been satisfied: (i) all of the buildings and other physical facilities of the Project have been duly and properly constructed and completed in accordance with design specifications, and the Borrower has delivered
to the Lender all relevant certifications and reports issued by the EPC contractor and the construction supervision company; (ii) all of the equipment for the Project has been duly and properly installed and commissioned and has satisfactorily
passed production tests and the Borrower has delivered to the Lender a testing report completed in good faith and signed by the project manager selected by the Borrower (provided that such project manager is not an Affiliate of the Borrower); and
(iii) the Project facilities are capable of producing certified aircraft and non-aircraft products (as defined in the Feasibility Study Report) in commercially feasible quantities. 

“Dingsheng” means Zhenjiang Dingsheng Aluminum Joint-Stock Co. Ltd. 

“Event of Default” means any event or circumstance specified as such in Section 17 (Events of Default).

 “Expense Cap” has the meaning set forth in Section 14.1. 

  
 2 

 “Facility” means Facility A, Facility B or Facility C; and
“Facilities” means all of the foregoing. 
 “Facility A” means the term loan facility in US
Dollars offered hereunder pursuant to Section 2 (Facilities). 
 “Facility A Commitment” means the
amount set opposite the Lender’s name under the heading of “Commitment” in Section I (Commitment in US Dollars) of Schedule 1 (Lender and Commitments), to the extent not cancelled, reduced or transferred by it
pursuant hereto. 
 “Facility A Loan” means a loan made under Facility A or the principal amount outstanding for
the time being of that loan. 
 “Facility B” means the term loan facility in RMB offered hereunder pursuant to
Section 2 (Facilities). 
 “Facility B Commitment” means the amount set opposite the Lender’s
name under the heading of “Commitment” in Section II (Commitment in RMB) of Schedule 1 (Lender and Commitments), to the extent not cancelled, reduced or transferred by it pursuant hereto. 

“Facility B Loan” means a loan made under Facility B or the principal amount outstanding for the time being of that loan.

 “Facility C” means the revolving loan facility in USD and/or RMB made available hereunder pursuant to
Section 2 (Facilities). 
 “Facility C Commitment” means the amount set opposite the Lender’s
name under the heading of “Commitment” in Section III of Schedule 1 (Lender and Commitments), to the extent not cancelled, reduced or transferred by it pursuant hereto. 

“Facility C Loan” means a loan made under Facility C or the principal amount outstanding for the time being of that loan,
as applicable. 
 “Feasibility Study Report” means the feasibility study report dated January 11, 2011,
prepared by Aleris Asia and Dingsheng for evaluating the technical and commercial feasibility of the Project and of establishing the Borrower, and approved by the local counterparts of National Development and Reform Commission. 

“Fee Letter” means any letter or letters setting out any of the fees referred to in Section 11 (Fees).

 “Final Maturity Date” means, with respect to Facility A, Facility B and Facility C, the date that is the
tenth (10) anniversary of the first Utilisation Date with respect to Facility A or Facility B (whichever is earlier). 

“Finance Documents” means this Agreement, the Comfort Letter, the Security Documents, the Fee Letters, and any other
document designated as such by the Lender and the Borrower. 
 “Financing Request” has the meaning set forth in
Section 16.3(a). 
 “First Currency” has the meaning set forth in Section 13.1. 

“First Repayment Date” has the meaning set forth in Section 6.1. 

“Governmental Agency” means any government or any governmental agency, semi-governmental or judicial entity. 

  
 3 

 “Holding Company” means, in respect of a company or corporation, any other
company or corporation in respect of which it is a Subsidiary. 
 “Initial Drawdown Schedule” means the
preliminary drawdown schedule with respect to the Facilities attached hereto as Exhibit A, which schedule may be updated by the Borrower from time to time. 
 “Interest Payment Date” means: 
  

	 	(a)	with respect to a Facility A Loan, each June 21 and December 21 during the term of the Facility A Loan and each Scheduled Repayment Date and the Final
Maturity Date; provided that the final Interest Payment Date shall not be later than the Final Maturity Date; 

  

	 	(b)	with respect to a Facility B Loan, each March 21, June 21, September 21 and December 21 during the term of the Facility B Loan and each
Scheduled Repayment Date and the Final Maturity Date; provided that the final Interest Payment Date shall not be later than the Final Maturity Date; and 

  

	 	(c)	with respect to a Facility C Loan, each March 21, June 21, September 21 and December 21 during the term of the Facility B Loan and the
Maturity Date with respect to each Facility C Loan; provided that the final Interest Payment Date shall not be later than the Final Maturity Date. 

 “Interest Period” means, in relation to a Loan, each period determined in accordance with Section 8.2 (Interest Periods) and in relation to an Unpaid Sum that is in default,
each period determined in accordance with Section 9 (Default Interest). 
 “Interest Rate Determination
Date” means: 
  

	 	(a)	 in respect of any proposed USD Loan to be utilised under Facility A or Facility C, the second
(2nd) London Business Day immediately preceding the
relevant Utilisation Date, and, in respect to USD Loans that have been utilised, the second (2nd ) London Business Day immediately preceding the next Interest Payment Date applicable to such USD Loans; and 

 

	 	(b)	in respect of any proposed RMB Loan to be utilised under Facility B or Facility C, the Utilisation Date with respect to such RMB Loan, and, in respect to RMB Loans that
have been utilised, on each one year anniversary of the first Utilisation Date with respect to such RMB Loan; provided that for Facility C Loans with a term of one (1) year or less, the interest rate with respect to such Loans shall not be
adjusted pursuant to the terms above, unless such Facility C Loan(s) are rolled over in accordance with Section 6.4. 

 “Land Use Rights Mortgage” means that certain land use rights mortgage to be entered into by the Borrower and the Lender. 

“Lender” has the meaning set forth in the preamble hereto. 

“Lender Transfer” has the meaning set forth in Section 19.1. 

“LIBOR” means: 
  

	 	(a)	the rate displayed on the LIBOR page of the Bloomberg screen; or 

  
 4 

	 	(b)	if no Screen Rate is available for US Dollars for the Interest Period of that Loan, the arithmetic mean (rounded upward to four decimal places) of the rates, as
supplied to the Lender at its request, quoted by the Reference Banks to leading banks in the London interbank market, 

 as at 11:00 a.m. (London time) on the second London Business Day prior to the commencement of the applicable Interest Period of a USD Loan for the offering of deposits in US Dollars and for a period
comparable to the Interest Period for the relevant USD Loan. 
 “Loan” means a Facility A Loan, a Facility B
Loan or a Facility C Loan, as applicable, or all of the foregoing Facilities. 
 “London Business Day” means a
day (other than a Saturday or Sunday) on which banks are open for general business in London. 
 “Margin” means
(a) with respect to a Facility A Loan, two point nine percent (2.9%) per annum and (b) with respect to a USD Revolving Loan, two point six percent (2.6%) per annum. “Maturity Date” shall mean the date that any
disbursed and outstanding Loan under Facility C is due and payable by the Borrower to the Lender in accordance with the terms herein; provided that no maturity date with respect to any Facility C Loan shall extend beyond the Final Maturity Date.

 “Market Disruption Event” has the meaning set forth in Section 10.1. 

“Market Disruption Notice” has the meaning set forth in Section 10.1. 

“Material Adverse Effect” means a material adverse effect on the business, operations, property and financial condition
of the Borrower, such that the Borrower is unable to continue the Project or perform its obligations under the Finance Documents and such failure is reasonably likely to result in an Event of Default. 

“New Lender” has the meaning set forth in Section 19.1. 

“Obligors” mean the Borrower and the Shareholders. 

“Party” means a party to this Agreement. 
 “PBOC Base Rate” means, in respect of any RMB Loan, the base rate applicable to any loan denominated in RMB of the same tenor, as announced by the People’s Bank of China on its
official website on the Interest Rate Determination Date. 
 “Permitted Transfer” has the meaning set forth in
Section 20.4. 
 “PRC” or “China” means the People’s Republic of China, which for the
purposes of the Finance Documents, shall exclude the Hong Kong Special Administrative Region, the Macau Special Administrative Region and Taiwan. 
 “Principal Payment Installment” has the meaning set forth in Section 6.2(a). 
 “Project” means (excluding any future expansion of the Project which is not financed by the Facilities hereunder) the manufacturing operations of the Borrower to be established in Jingkou
Science and Technology Industrial Zone, Zhenjiang City, Jiangsu Province, PRC. 
 “Property Mortgage” means that
certain property mortgage to be entered into in accordance with the terms of this Agreement by the Borrower and the Lender. 

  
 5 

 “Reference Banks” means the principal London office(s) of The Hong Kong and
Shanghai Banking Corporation Limited, Standard Chartered Bank Limited and Bank of China Limited. 
 “Representations and
Warranties” has the meaning set forth in Section 15. 
 “Revenue Account” means the account to be
opened with the Account Bank by the Borrower for the settlement of operational income of the Borrower. 
 “RMB”
or “Renminbi” denotes the lawful currency of the PRC. 
 “RMB Account” means the account to be
opened by and in the name of the Borrower with the Account Bank for the purpose of receiving the initial disbursement of each RMB Loan (unless otherwise provided for in the Finance Documents). 

“RMB Loan” means a Facility B Loan or an RMB Revolving Loan or the principal amount outstanding for the time being of
such loan. 
 “RMB Revolving Loan” means a loan denominated in RMB that has been utilised by the Borrower under
Facility C. 
 “Scheduled Repayment Date” has the meaning set forth in Section 6.2(a). 

“Second Currency” has the meaning set forth in Section 13.1. 

“Security Documents” means the Land Use Rights Mortgage, the Property Mortgage and the Assets Mortgage Agreement.

 “Shareholders” means, collectively, Aleris Asia and Dingsheng; and “Shareholder” means
either of them. 
 “Status Report” has the meaning set forth in Schedule 2, paragraph (c). 

“Subsidiary” means, in relation to a company or corporation, any other company or corporation: 

 

	 	(a)	which is controlled, directly or indirectly, by the first mentioned company or corporation; 

 

	 	(b)	more than half of the issued share capital of which is beneficially owned, directly or indirectly, by the first mentioned company or corporation; or

  

	 	(c)	which is a subsidiary of another Subsidiary of the first mentioned company or corporation, 

and for this purpose, a company or corporation shall be treated as being controlled by another if that other company or corporation is
able to direct its affairs and/or to control the composition of its board of directors or equivalent body. 

“Sum” has the meaning set forth in Section 13.1. 

“Tax” means any tax, levy, impost, duty or other charge or withholding of a similar nature (including any penalty or
interest payable in connection with any failure to pay or any delay in paying any of the same). 
 “Third Party Financing
Terms” has the meaning set forth in Section 16.3(a). 
 “Transaction Expenses” has the meaning set
forth in Section 14.1. 
 “Total Principal Amount” has the meaning set forth in Section 6.2(a).

 “Unpaid Sum” means any sum due and payable but unpaid by the Borrower under any Finance Document. 

  
 6 

 “USD Account” means the account to be opened by and in the name of the
Borrower with the Account Bank for the purpose of receiving the initial disbursement of each USD Loan (unless otherwise provided for in the Finance Documents). 
 “US Dollar”, “USD” or “US$” means the United stated Dollar, the lawful currency for the time being of the United States of America. 

“USD Loan” means a Facility A Loan or a USD Revolving Loan or the principal amount outstanding for the time being of such
loan. 
 “USD Revolving Loan” means a loan denominated in RMB that has been utilised by the Borrower under
Facility C. 
 “Utilisation” means a utilisation of a Facility. 

“Utilisation Date” means the date of making an utilisation of a Facility, being the date on which the relevant Loan is
made. 
 “Utilisation Request” means a notice substantially in the form set out in Schedule 3.

  

	1.2	Construction 

  

	 	(a)	Unless a contrary indication appears, any reference in this Agreement to: 

  

	 	(i)	the “Lender”, the “Borrower”, any “Shareholder”, any “Obligor”, or any “Party”
shall be construed so as to include its successors in title, permitted assigns and permitted transferees; 

  

	 	(ii)	“assets” includes present and future properties, revenues and rights of every description; 

 

	 	(iii)	a “Finance Document” or any other agreement or instrument is a reference to that Finance Document or other agreement or instrument as amended or
renovated; 

  

	 	(iv)	“indebtedness” includes any obligation (whether incurred as principal or as surety) for the payment or repayment of money, whether present or future,
actual or contingent; 

  

	 	(v)	“month” means a period starting on one day in a calendar month and ending on the numerically corresponding day in the next calendar month, except that:

  

	 	(1)	subject to paragraph (3) below, if the numerically corresponding day is not a Business Day, that period shall end on the next Business Day in that calendar month
in which that period is to end if there is one, or if there is not, on the immediately preceding Business Day; 

  

	 	(2)	if there is no numerically corresponding day in the calendar month in which that period is to end, that period shall end on the last Business Day in that calendar
month; 

  

	 	(3)	if an Interest Period begins on the last Business Day of a calendar month, that Interest Period shall end on the last Business Day in the calendar month in which that
Interest Period is to end; and 

  

	 	(4)	the above rules will only apply to the last month of any period. 

  
 7 

	 	(vi)	a “person” includes any person, firm, company, corporation, government, state or agency of a state or any association, trust or partnership (whether or
not having separate legal personality) or any two or more of the foregoing; 

  

	 	(vii)	a “regulation” includes but is not limited to any regulation, rule, official directive, request or guideline (whether or not having the force of law)
of any governmental, intergovernmental or supranational body, agency, department or regulatory, self-regulatory or other authority or organisation; 

  

	 	(viii)	a provision of law is a reference to that provision as amended or re-enacted; 

 

	 	(ix)	unless otherwise stated, a time of day is a reference to Beijing time; and 

 

	 	(x)	the plural includes the singular and vice versa. 

  

	 	(b)	Section, Schedule and Exhibit headings are for ease of reference only. 

  

	 	(c)	Unless a contrary indication appears, a term used in any other Finance Document or in any notice given under or in connection with any Finance Document has the same
meaning in that Finance Document or notice as in this Agreement. 

  

	 	(d)	An Event of Default is “continuing” if not remedied or waived. 

  

	2.	FACILITIES 

  

	2.1	Facilities 

 Subject to
the terms and conditions of this Agreement, the Lender agrees to make available to the Borrower: 
  

	 	(a)	a USD term loan facility in an aggregate amount equal to the Facility A Commitment; 

 

	 	(b)	a RMB term loan facility in an aggregate amount equal to the Facility B Commitment; and 

 

	 	(c)	a RMB and USD revolving loan facility in an aggregate amount equal to the Facility C Commitment; provided that the Lender shall not be obligated to disburse any portion
of the Facility C Commitment with respect to a given year unless the Borrower has satisfied the Lender’s customary annual review process for such year. The Lender agrees that if there is no outstanding Event of Default of the Borrower, the
Lender shall not unreasonably refuse to determine that the Borrower passed the the annual audit. 

  

	3.	TENOR AND PURPOSE 

 

	3.1	Tenor of Loans under Facility A and Facility B 

 The tenor with respect to each Loan drawn under Facility A and Facility B shall begin on the Utilisation Date thereof and, unless prepaid in accordance with the terms herein, shall end on the Final
Maturity Date. 
  

	3.2	Tenor of Loans under Facility C 

 The tenor with respect to each Loan drawn under Facility C shall be selected by the Borrower in periods of 3, 6 or 12 months, provided that the Borrower may select a tenor of 24 or 36 months subject to
the Lender’s prior reasonable consent in consultation with the Borrower. Notwithstanding the above, no maturity date with respect to any Facility C Loan shall extend beyond the Final Maturity Date. 

  
 8 

	3.3	Purpose 

 The Borrower
shall apply all amounts borrowed by it under the Facilities in the manner as follows: 
  

	 	(a)	Facility A and Facility B shall be used to finance a portion of the construction of infrastructure and procurement of equipment in relation to the Project; and

  

	 	(b)	Facility C shall be used to finance a portion of the Borrower’s operating expenses. 

 

	3.4	Monitoring 

 The Lender
will monitor or verify the application of any amount borrowed pursuant to this Agreement in accordance with the requirements of the laws and regulations, and the Borrower shall provide all reasonably necessary support. 

 

	4.	CONDITIONS PRECEDENT TO UTILISATION 

 

	4.1	Conditions Precedent to Initial Utilisation 

  

	 	(a)	The Lender shall make available a Loan under the requested Facility in compliance with Section 5.4 (Lender’s Participation) if, on the date of the
proposed Utilisation: 

  

	 	(i)	there is no Event of Default or any continuing Event of Default; 

  

	 	(ii)	all of the Representations, Warranties and covenants are valid and effective, or have otherwise been waived by the Lender (as the case may be);

  

	 	(iii)	the Lender has received all of the documents and other evidence listed in and appearing to comply with the requirements of Part A of Schedule 2.

  

	4.2	Conditions Precedent to Each Subsequent Utilisation 

  

	 	(a)	The Lender shall make available a Loan under the requested Facility in compliance with Section 5.4 (Lender’s Participation) if, on the date of the
proposed Utilisation: 

  

	 	(i)	there is no Event of Default or any continuing Event of Default; 

  

	 	(ii)	all of the Representations, Warranties and covenants are valid and effective, or have otherwise been waived by the Lender (as the case may be);

  

	 	(iii)	the Lender has received all of the documents and other evidence listed in and appearing to comply with the requirements of Part B of Schedule 2.

  

	5.	UTILISATION 

  

	5.1	Delivery of an Utilisation Request 

 The Borrower shall, subject to the terms herein, utilise any or all of the Facilities by delivering a completed Utilisation Request to the Lender before the proposed Utilisation Date within the
Availability Period applicable to such Facility. 
  

	5.2	Completion of an Utilisation Request 

  
 9 

	 	(a)	Upon the delivery of an Utilisation Request and the satisfaction of the relevant conditions precedent to the Utilisation as set forth in Section 4 above, the
Borrower shall be obligated to utilise the relevant Facility pursuant to the terms and conditions of this Agreement on such date and in such amount and currency as set out in the Utilisation Request. 

 

	 	(b)	Each Utilisation Request will not be regarded as having been completed unless: 

 

	 	(i)	it is delivered on or before 11:00 a.m. on a Business Day falling at least five (5) Business Days prior to the proposed Utilisation Date; 

 

	 	(ii)	the proposed Utilisation Date is a Business Day within the relevant Availability Period; 

 

	 	(iii)	it specifies the Maturity Date and/or Final Maturity Date and the proposed Facility to be utilised; 

 

	 	(iv)	the currency and amount of the utilisation are in compliance with Section 5.3 (Currency and Amount); and 

 

	 	(v)	it specifies the account (RMB Account or USD Account opened by the Borrower at the Account Bank) and bank to which the proceeds of the Utilisation are to be credited.

  

	 	(c)	Only one Loan may be requested in each Utilisation Request. 

  

	5.3	Currency and Amount 

  

	 	(a)	The currency of the proposed Loan specified in an Utilisation Request shall be in US Dollars or RMB, as the case may be. 

 

	 	(b)	Unless otherwise agreed between the Lender and the Borrower: 

  

	 	(i)	a Utilisation under Facility A shall not be more than the Available Facility A Commitment and must be in a minimum amount of US$1,000,000 or such other amount as agreed
to by the Lender and in integral multiples of US$500,000 or, if less, the remaining Facility A Commitment; 

  

	 	(ii)	a Utilisation under Facility B shall not be more than the Available Facility B Commitment and must be in a minimum amount of RMB5,000,000 or such other amount as agreed
to by the Lender and in integral multiples of RMB1,000,000 or, if less, the remaining Facility B Commitment; and 

  

	 	(iii)	a Utilisation under the Facility C shall not be more than the Available Facility C Commitment and must be in a minimum amount of RMB1,000,000 or such other amount as
agreed to by the Lender and in integral multiples of RMB500,000 or, if less, the remaining Facility C Commitment. 

  

	 	(c)	If any single Utilisation under Facility A or Facility B is in an amount greater than 5% of the total investment in the Project, or is equivalent to RMB5,000,000 (based
on foreign currency exchanged pursuant to the exchange rate on the actual Utilisation Date), then the Borrower shall authorize the Lender to direct payment of such amounts directly to the account of the third party payee. 

 

	 	(d)	 If any single Utilisation under Facility C is in an amount equal to or greater than RMB 75 million (or the USD equivalent of RMB 75 million), then
the Borrower 

  
 10 

	 	 
shall authorize the Lender to direct payment of such amounts directly to the account of the third party payee. 

 

	5.4	Lender’s Participation 

 The Lender shall, on or before 5:00 p.m. on the Utilisation Date, at the currency and amount of the Loan requested in the notice given to it by the Borrower, complete the transfer of the relevant Loan
proceeds into the account designated by the Borrower pursuant to this Agreement. 
  

	5.5	Exchange Rate 

 With
respect to Facility C, the exchange rate for USD to RMB shall be fixed at US$1 to RMB6.65. 
  

	6.	REPAYMENT 

  

	6.1	First Repayment Date 

 The
Borrower shall begin to repay the principal amount drawn under Facility A and Facility B on the date that is twelve (12) months after the expiration of the Availability Period of Facility A and Facility B (if such date is a statutory holiday,
then the first Business Day preceding such day) (such date, the “First Repayment Date”) in accordance with Section 6.2. 
  

	6.2	Scheduled Principal Repayment Dates 

  

	 	(a)	Subject to the other provisions of this Section 6.2, repayments of the total principal amount outstanding under Facility A and Facility B (collectively, the
“Total Principal Amount”) shall be made on and as of the First Repayment Date and on the numerically corresponding calendar day to the First Repayment Date falling six (6) months after the First Repayment Date and each
Scheduled Repayment Date in accordance with the schedule below (each payment, a “Principal Payment Installment” and each such payment date, a “Scheduled Repayment Date”): 

 

			
	 PAYMENT
	  	 PAYMENT AMOUNT

		
	1st Principal Payment Installment (to be paid on the First Repayment Date)	  	2.5% of the Total Principal Amount
		
	2nd Principal Payment Installment	  	2.5% of the Total Principal Amount
		
	3rd Principal Payment Installment	  	5% of the Total Principal Amount
		
	4th Principal Payment Installment	  	5% of the Total Principal Amount
		
	5th Principal Payment Installment	  	7.5% of the Total Principal Amount
		
	6th Principal Payment Installment	  	7.5% of the Total Principal Amount

  
 11 

			
	7th Principal Payment Installment	  	10% of the Total Principal Amount
		
	8th Principal Payment Installment	  	10% of the Total Principal Amount
		
	9th Principal Payment Installment	  	10% of the Total Principal Amount
		
	10th Principal Payment Installment	  	10% of the Total Principal Amount
		
	11th Principal Payment Installment	  	12.5% of the Total Principal Amount
		
	12th Principal Payment Installment	  	12.5% of the Total Principal Amount or, if such Scheduled Prepayment Date falls on or after the Final Maturity Date, the remaining unpaid balance of the Total Principal
Amount
		
	13th Principal Payment Installment	  	The remaining unpaid balance of the Total Principal Amount (if any)

  

	 	(b)	The Borrower shall make each Principal Payment Installment in RMB and US Dollars based on the proportion of the outstanding principal amount of RMB and US Dollars that
has been drawn under Facility A and Facility B. 

  

	 	(c)	The Borrower shall initiate payment of each Principal Payment Installment to a bank account designated by the Lender by telegraphic transfer or bank transfer by 11:00
a.m. on the relevant Scheduled Repayment Date. 

  

	 	(d)	Unless otherwise provided in this Agreement, the Borrower shall repay each Facility C Loan on the last day of the loan term applicable to it in the currency in which
such Facility C Loan is denominated. 

  

	6.3	Re-borrowing 

 Unless a
contrary indication appears in this Agreement, any part of a Facility C Loan which is repaid prior to the Final Maturity Date may be re-borrowed in accordance with and subject to the terms of this Agreement. The Borrower may not re-borrow any part
of Facility A or Facility B which has been repaid or prepaid in accordance with the Finance Documents. 
  

	6.4	Renewal/Roll-Over of Term for Facility C Loans 

  

	 	(a)	 The Borrower may renew any Facility C Loan for an additional period equal to or less than the original term of such Facility C Loan by delivering
notice of 

  
 12 

	 	 
such renewal to the Lender not less than three (3) months prior to the end of the original term of such Facility C Loan; provided that: 

 

	 	(i)	with respect to a Facility C Loan with a term of one (1) year (inclusive) or less, the period of renewal shall be no more than the existing term of such Facility C
Loan; 

  

	 	(ii)	with respect to a Facility C Loan with a term of one (1) year to three (3) years (inclusive), the period of renewal shall be no more than 50% of the existing
term of such Facility C Loan; 

  

	 	(iii)	the Borrower has satisfied the Lender’s relevant approval process; 

  

	 	(iv)	the renewal will not result in an Interest Payment Date, an Interest Period or a principal payment date in respect of a Facility C Loan falling after the Final Maturity
Date; and 

  

	 	(v)	all of the requirements and conditions of Section 4.2 and 5.2 will be satisfied at the relevant time of renewal as if the references therein to
“Utilisation Date” were instead to the last day of the Interest Period applicable thereto on which the relevant Facility C Loan would otherwise have been due for repayment. 

 

	7.	PREPAYMENT AND CANCELLATION 

 

	7.1	Voluntary Cancellation 

  

	 	(a)	Unless otherwise provided for in this Section 7.1 (Voluntary Cancellation), the Borrower may, if it gives the Lender not less than five (5) days’
prior written notice, cancel all or any part of the Available Facility under any Facility during the Availability Period. 

  

	 	(b)	In respect of Facility A and Facility B, the relevant Available Facility which remains unutilised by the Borrower at the end of the Availability Period of such
Facilities shall be deemed cancelled automatically. 

  

	 	(c)	Any cancellation of the relevant Available Facility under this Section 7.1 shall reduce the Commitments of the Lender under the relevant Facility.

  

	7.2	Voluntary Prepayment 

  

	 	(a)	The Borrower may at any time, upon prior irrevocable written notice to the Lender, prepay the whole or any part of any Facility, without being required to pay any
damages, fees, expenses or other amounts in connection with such prepayment. For prepayment of Facility A and Facility B, the Borrower shall deliver to the Lender ten (10) days prior notice. For prepayment of Facility C, the Borrower shall
deliver to the Lender five (5) days prior notice. 

  

	 	(b)	Each prepayment of a Facility A Loan shall be in a minimum amount of US$2,000,000 or, if less, the balance of all outstanding Facility A Loans.

  

	 	(c)	Each prepayment of a Facility B Loan shall be in a minimum amount of RMB10,000,000 or, if less, the balance of all outstanding Facility B Loans.

  
 13 

	 	(d)	Each prepayment of a Facility C Loan shall be in a minimum amount of RMB500,000 (or its US Dollar equivalent) or, if less, the balance of all outstanding Facility C
Loans. 

  

	 	(e)	Any prepayment of a Facility A or Facility B Loan under this Section 7.2 shall satisfy the obligations under Section 6.2 in inverse chronological order or any
other order agreed in writing by the Borrower and the Lender. 

  

	8.	INTEREST RATE AND INTEREST PERIOD 

 

	8.1	Interest Rate 

  

	 	(a)	The interest rate on the relevant USD Loan for each Interest Period relating thereto is the percentage rate per annum which is the aggregate of the applicable
(i) Margin and (ii) Base Rate, as determined and/or adjusted on the relevant Interest Rate Adjustment Date. 

  

	 	(b)	The interest rate on each RMB Loan for each Interest Period relating thereto is ninety percent (90%) of the applicable PBOC Base Rate, as determined and/or
adjusted on the relevant Interest Rate Adjustment Date. 

  

	8.2	Interest Periods 

  

	 	(a)	Subject to this Section 8, the duration of each Interest Period in respect of each Loan is as follows: 

 

									
	Facility A Loan:	  	6 months	  		  		  	
					
	Facility B Loan:	  	3 months	  		  		  	
					
	USD Revolving Loan:	  	3 months	  		  		  	
					
	RMB Revolving Loan:	  	3 months	  		  		  	

  

	 	(b)	Each Interest Period shall commence on the last day of the immediately preceding Interest Period applicable thereto, except that the first Interest Period shall
commence on the first Utilisation Date with respect to such Loan, and if any Interest Period would otherwise end on a day which is not a Business Day, that Interest Period will instead end on the next Business Day in that calendar month (if there is
one) or the preceding Business Day (if there is not). 

  

	8.3	Payment on Interest Payment Date 

 Subject to this Section 8, the accrued interest on each Loan shall be paid on the relevant Interest Payment Date. 
  

	8.4	Notification of Interest Payment 

 The Lender shall, five (5) Business Days prior to each Interest Payment Date, deliver to the Borrower a written notice setting forth in reasonably complete detail the interest amounts payable by the
Borrower. 
  

	8.5	Payment by Borrower 

 The
Borrower shall remit by telegraphic transfer or bank transfer the full amount of the interest then due and payable into an account designated by the Lender on each Interest Payment Date. 

  
 14 

	9.	DEFAULT INTEREST 

  

	9.1	Default Interest 

 If the
Borrower fails to pay any amount payable by it under a Finance Document on its due date, the Borrower shall, within ten (10) Business Days of its receipt of written demand by the Lender, pay the default interest on that overdue amount from the
due date up to the date of actual payment (both before and after judgment) at a rate which is one hundred thirty per cent (130%) of the interest rate agreed herein or at such applicable minimum rate of penalty interest as required by the then
prevailing laws of the PRC. 
  

	9.2	Penalty Interest against Misappropriation 

 In case the Borrower misappropriates any Loan, or any part thereof, for the purpose other than that listed in Section 3 (Tenor and Purpose), the Borrower shall, within ten (10) Business
Days of its receipt of written demand by the Lender, pay the penalty interest against misappropriation to the Lender. The penalty interest against misappropriation shall be calculated on the amount misappropriated for the actual appropriated days at
a rate which is one hundred fifty per cent (150%) of the interest rate agreed herein or at such applicable minimum rate of penalty interest as required by the then prevailing laws of the PRC. 

The penalty interest with respect to loan amounts that are both overdue and misused shall be calculated according to one hundred fifty per
cent (150%) of the interest rate agreed herein or at such applicable minimum rate of penalty interest as required by the then prevailing laws of the PRC. The penalty interest with respect to loan amounts that are both overdue and misused shall
accrue until the date that principal and interest with respect to such loan have been paid. 
  

	9.3	Compound interest 

 Any
default interest arising on an Unpaid Sum or misused loan amount will be compounded with the Unpaid Sum or misused loan amount at the end of each Interest Period applicable to that Unpaid Sum or misused loan amount, and such Unpaid Sum or misused
loan amount (including the default interest compounded thereto) shall be (subject to any grace periods) due and payable on the applicable Interest Payment Date. 
  

	10.	CHANGES IN THE CALCULATION OF INTEREST

  

	10.1	Market Disruption 

 If:

  

	 	(a)	The interest on a Loan will be determined by reference to the PBOC Base Rate that does not exist any more; or 

 

	 	(b)	the LIBOR for any Loan and any interest relating thereto is to be determined by reference to the Reference Banks but none or only one of the Reference Banks supplies a
rate at or about noon (London time) on the date of determination of the LIBOR for such Loan and the Interest Period, 

 (each such event, a “Market Disruption Event”), the Lender shall promptly give written notice to the Borrower (such notice, the “Market Disruption Notice”), notifying it
of such fact and that this Section 10.1 is in operation. 
  

	10.2	No Suspension of Utilisation 

  
 15 

 If a Market Disruption Notice applies to a Loan which has not been advanced, that Loan
shall, subject to Section 10.3 (Alternative Basis), be advanced on the requested Utilisation Date. 
  

	10.3	Alternative Basis 

  

	 	(a)	Within five (5) days of receipt of a Market Disruption Notice from the Lender, the Borrower shall enter into good faith negotiations with a view to confirming a
new applicable rate of interest, and during the negotiation period, the rate of interest on each Loan shall be the relevant rate last applied in accordance with Section 8.1 (Interest Rate). 

 

	 	(b)	Any alternative basis agreed pursuant to paragraph (a) above shall, with the prior consent of the Lender and the Borrower, be binding on all the Parties.

  

	 	(c)	For the avoidance of doubt, if no alternative basis is agreed upon between the Borrower and the Lender within a period of thirty (30) days after the commencement
of the negotiation, then the Borrower: 

  

	 	(i)	may prepay the Loans in full at any time without premium or penalty but together with accrued interest thereon to the date of prepayment; or 

 

	 	(ii)	not prepay the Loans in whole, in which event, for so long as the Market Disruption Event is continuing, the rate of interest applicable to such the Loan during such
period shall be: 

  

	 	(1)	in respect of the interest rate of a USD Loan, the aggregate of (A) the actual and reasonable financing cost incurred by the Lender from obtaining the
corresponding interbank loan in the London interbank market, and (B) the Margin; and 

  

	 	(2)	in respect of the interest rate of a RMB loan, the relevant rate last applied according to Section 8.1 (Interest rate). 

 

	11.	FEES 

  

	11.1	Arrangement fee 

 The
Borrower shall pay to the Lender an arrangement fee in accordance with and subject to the terms set forth in a Fee Letter. 
  

	11.2	Agency fee 

 The Borrower
shall pay to the Lender an agency fee in accordance with and subject to the terms set forth in a Fee Letter. 
  

	11.3	Participation fee 

 The
Borrower shall pay to the Lender a participation fee in accordance with and subject to the terms set forth in a Fee Letter. 
  

	11.4	No Other Fees 

 Except for
the fees set forth in this Section 11 and the Transaction Expenses set forth in Section 14.1 below, the Parties agree that the Obligors shall not be obligated to pay any fees or other amounts to the Lender, any member of the Syndicate or
any of their respective Affiliates. 

  
 16 

	12.	TAXES 

 The Parties agree that any Tax relating to the Finance Documents or the performance thereof shall be paid by the applicable Parties according to relevant Governmental Rules. 

 

	13.	INDEMNITIES 

  

	13.1	Currency Indemnity 

 If
any sum due from the Borrower under the Finance Documents (a “Sum”), or any order, judgment or award given or made in relation to a Sum, has to be converted from the currency (the “First Currency”) in which that Sum
is payable into another currency (the “Second Currency”), the Borrower shall, within 10 Business Days’ after receiving written notice from the Lender, indemnify the Lender against any reasonable and properly incurred cost, loss
or liability arising out of the conversion, including any discrepancy between (a) the rate of exchange used to convert that Sum from the First Currency into the Second Currency and (b) the rate or rates of exchange available to that person
at the time of its receipt of that Sum. Such losses shall be particularized in writing and be delivered by the Lender to the Borrower upon request. 
  

	13.2	Other Indemnities 

  

	 	(a)	The Borrower shall, within ten (10) Business Days following its receipt of written demand from the Lender, indemnify the Lender against any cost, loss or liability
(but excluding any special or indirect loss or liability, or any punitive amounts) reasonably and properly incurred by the Lender as a result of an Event of Default. 

 

	 	(b)	The Borrower’s indemnity obligation under Section 13.2(a) above shall not apply to any losses attributable to the gross negligence, intentional misconduct or
fraud by the Lender or its Affiliates. 

  

	 	(c)	If the Borrower and the Lender cannot agree on any indemnification item or amount, the Borrower shall not be obliged to indemnify the Lender for that cost, loss and/or
liability amount in dispute before the agreement on any indemnification item or amount has been reached. 

  

	14.	COSTS AND EXPENSES 

 

	14.1	Transaction Expenses 

 The
Borrower shall, within (10) Business Days following its receipt of written demand from the Lender, pay the Lender the amount of all costs and expenses (including legal fees) incurred by the Lender in connection with the first closing and
utilisation of the Facility (collectively, the “Transaction Expenses”); provided that no Obligor shall be liable to reimburse or otherwise pay for or on behalf of the Lender any Transaction Expenses that exceed an aggregate amount
of RMB100,000 (the “Expense Cap”). 
  

	15.	REPRESENTATIONS AND WARRANTIES 

The representations and warranties below (collectively, the “Representations and Warranties”) are made by the Borrower on
the date hereof and shall be deemed to be repeated by the Borrower on each Utilisation Date. Each Representation and 

  
 17 

 
Warranty, when made or deemed to be made, shall be made in reference to the facts and circumstances then existing and shall be based solely on the Borrower’s knowledge. 

 

	 	(a)	The Borrower is duly registered and validly existing and is fully capable for civil rights and acts required for execution and performance of the Finance Documents.

  

	 	(b)	The Borrower’s execution and performance of the related Finance Documents represent its true intent. 

 

	 	(c)	The Borrower has obtained legitimate and valid authorizations as required by its articles of association or other documented internal requirements, and will not violate
any agreement, contract and other legal documents binding upon the Borrower, such that any such violation is reasonably likely to have a Material Adverse Effect. 

 

	 	(d)	The Borrower has or will obtain all material approvals, permits, filings or registrations necessary for its execution and performance of the Finance Documents; provided
that failure to obtain such material approvals, permits, filings or registrations would not have a Material Adverse Effect with respect to the execution and performance of the Finance Documents. 

 

	 	(e)	All documents, financial statements, vouchers and other materials that the Borrower has provided to the Lender under the Finance Documents are, to its knowledge, true,
complete, accurate and valid. 

  

	 	(f)	The alleged business underlying the transactions contemplated herein is real and not for money laundering or any other illegal purpose. 

 

	 	(g)	The Borrower has disclosed to the Lender any event that, to its knowledge, will have a Material Adverse Effect on its financial standing or ability to perform the
Facility Agreement. 

  

	 	(h)	The Borrower is not aware of any event that is reasonably likely to have a Material Adverse Effect on its financial standing or ability to perform the Facility
Agreement. 

  

	16.	COVENANTS AND UNDERTAKINGS 

 

	16.1	General Undertakings by the Borrower 

 The Borrower agrees: 
  

	 	(a)	to supply to the Lender: (i) as soon as the same is made available, but in any event within one hundred and twenty (120) days after the end of each of its
financial years, its audited consolidated financial statements for that financial year; and (ii) as soon as the same is made available, but in any event within ninety (90) days after the end of the first half of each of its financial
years, its unaudited consolidated financial statements for that financial half year; 

  

	 	(b)	to provide the Lender with certain of its financial statements (including but not limited to annual and quarterly reports); 

  
 18 

	 	(c)	to ensure that the ratio of (i) the outstanding principal balance of the term Loans extended for the Project to (ii) the equity capital invested in the
Project by the Shareholders does not exceed 2:1; 

  

	 	(d)	to draw down, pay and apply the Loans pursuant to the provisions under the Finance Documents; 

 

	 	(e)	to provide assistance to the Lender with respect to any reasonable credit inspections of the Borrower by the Lender; 

 

	 	(f)	save and except for the Permitted Transfers or as otherwise permitted in the Finance Documents, to obtain written consent from the Lender prior to any merger, split-up,
capital reduction, share transfer, transfer of major assets and claims or any other event with respect to the Facilities or the Project that has a Material Adverse Effect on the Borrower’s ability to repay its debts; 

 

	 	(g)	to the extent permitted under PRC laws, to ensure that the repayment of the Loans shall have priority over the loans extended to the Borrower by the Shareholders, and
shall not be any junior to any debts of the same class incurred with respect to the Project that are owed by the Borrower to other creditors; 

  

	 	(h)	not to distribute any dividend or bonus to the Shareholders in any form if: (1) its pre-tax profit in the relevant fiscal year is zero or negative or insufficient
to cover accumulated losses in previous years; or (2) its pre-tax profit is not used to discharge the principal, interest and expenses that the Borrower is required to discharge in such fiscal year; 

 

	 	(i)	not to dispose of its assets in a manner that will materially impair its ability to repay debts, except for such disposals that are in its ordinary course of business
or are otherwise required by law, court order or government regulations; 

  

	 	(j)	to ensure that the total amount of guarantees (if any) that the Borrower provides to third parties will not be higher than twice its net assets, and that the total
amount of such guarantees or any single guarantee will not exceed any restriction set forth in its articles of association; 

  

	 	(k)	not to provide a guarantee to any third party using assets of the Project that are financed (fully or in part) by any Facility, without the consent of the Lender;

  

	 	(l)	to ensure that the individual investors or key management personnel of the Borrower are not changed in a manner that is inconsistent with its normal business practices,
such that any such change results in a Material Adverse Effect; 

  

	 	(m)	use the proceeds of the Facilities in accordance to the terms of this Agreement, and not to use any proceeds of the Facilities for any purpose other than as set out in
the Finance Documents; 

  
 19 

	 	(n)	to ensure that the Completion Date occurs on or before January 1, 2016; 

 

	 	(o)	to open and maintain the Revenue Account on or before the Completion Date; 

 

	 	(p)	to ensure that the Lender is named as a first beneficiary on the insurance policies with respect to the Project; 

 

	 	(q)	to execute the Security Documents on the date hereof and submit to the relevant Governmental Authorities the documents required to register the security created by the
Security Documents as soon as practicable following the date that the conditions required to register such Security Documents have been satisfied; and 

  

	 	(r)	the Lender’s participation in the settlement services and deposit by the Borrower in the Lender with respect to the Project shall be no less than the Lender’s
participation in the Facilities. 

  

	16.2	Covenants relating to the Utilization of the Facilities 

 The Borrower agrees: 
  

	 	(a)	to use its best efforts to utilize Facility A and Facility B substantially in accordance with the Feasibility Study Report and the Initial Drawdown Schedule;

  

	 	(b)	to deliver to the Lender a drawdown schedule on or before the twentieth (20th) day of the month prior to the month in which a proposed Utilisation is to occur;

  

	 	(c)	to notify the Lender forty five (45) days in advance in the event that any changes in the Initial Drawdown Schedule are, to the Borrower’s knowledge,
reasonably likely to cause a material decrease in the Lender’s proceeds with respect to the Facilities; and 

  

	 	(d)	to set forth in the Initial Drawdown Schedule a preliminary estimate of the percentage of RMB and/or US Dollars that it intends to draw under Facility C, and to use its
best efforts in determining the percentage of RMB and/or US Dollars it intends to draw under Facility C on or before the date that is three (3) months following the first Utilisation of any Facility. 

 

	16.3	Covenants relating to Third Party Financing 

  

	 	(a)	The Borrower shall not to enter into additional financing for the purpose of expanding or increasing the production capacity of the Project (the “Additional
Financing”) without the prior written consent of the Lender; provided that such consent to the Additional Financing shall not be unreasonably withheld, conditioned or delayed. If the Borrower desires to enter into Additional Financing with
a third party lender or lenders, it shall deliver a written financing request (the “Financing Request”) to the Lender, 

  
 20 

	 	 
which shall set forth the material financing terms offered by such third party lender(s) (the “Third Party Financing Terms”). 

 

	 	(b)	If the Lender does not grant written consent to the Financing Request within fifteen (15) days after the date of the Financing Request, the Lender shall provide
such Additional Financing to the Borrower and shall enter into definitive loan documentation with the Borrower within forty five (45) days after the date of the Financing Request. The terms and conditions of the loan documentation with respect
to the Additional Financing shall not be less favorable to the Borrower than the Third Party Financing Terms. 

  

	 	(c)	Notwithstanding the above, the Borrower may enter into separate loan documentation with any third party lender(s) with respect to the Additional Financing if the
Borrower and the Lender fail, after good faith negotiations, to enter into definitive loan documentation regarding the Additional Financing within forty five (45) days after the date of the Financing Request. 

 

	16.4	General Undertakings by the Lender 

 The Lender and any of its other branches, each hereby undertake that it shall, at the Borrower’s request: 
  

	 	(a)	assist the Borrower (without fees or any conditions) in obtaining any relevant approval, consent, certificates, grants, licenses, and permission from any Governmental
Agency; 

  

	 	(b)	assist the Borrower (without fees or any conditions) in handling the application, process, and procurement of the Business License, Registration Certificate for Foreign
Exchange and other documents and procedures; 

  

	 	(c)	provide to the Borrower (without fees) financial services, including interest rate, exchange rate and industrial policies; 

 

	 	(d)	offer to the Borrower (without fees) customized financial services, including collecting and delivering the receipts of the Borrower and related services;

  

	 	(e)	assist the Borrower with the daily account management and daily settlement of the Borrower’s accounts (at favourable fees according to the usual and standard
charges); and 

  

	 	(f)	provide the Borrower favourable access to various financial products, including, without limitation, letters of credit and foreign exchange services.

  

	16.5	Additional Undertakings by the Lender. 

  

	 	(a)	Cost-overruns. 

  

	 	(i)	 The Lender agrees to grant additional facilities and/or to increase its Commitments under the Facilities upon and in the manner requested by the
Borrower for the purpose of paying cost overruns in connection with 

  
 21 

	 	 
the Project; provided that (i) the Borrower submits to the Lender evidence that such cost-overrun amounts have been approved by the Borrower, (ii) the equity invested by the
Shareholders to pay for such cost overruns is in the legally required proportion to the additional amount of the facilities requested to be granted and (iii) the Lender has received credit committee approval for such additional commitment.

  

	 	(ii)	The Lender agrees that any additional loan facilities granted pursuant to Section 16.5(a)(i) by way of a separate facility agreement shall be made on the same (or
no less favorable) terms and conditions as this Agreement, and that the underlying loan documentation with respect thereto shall be agreed and executed by the Parties within a commercially reasonable period of time following the date that the
Borrower delivers a written request to the Lender regarding the Additional Financing. 

  

	 	(iii)	If the Lender does not receive credit committee approval to grant additional facilities and/or to increase its Commitments under the Facilities in accordance with
Section 16.5, the Lender shall use its best effort to assist the Borrower in procuring a third party lender (or lenders) to finance such cost-overrun amounts within a commercially reasonable period of time. 

 

	 	(b)	Financing Commitment. The Lender shall not sell down, assign or otherwise transfer more than 60% of its aggregate original Commitment with respect to the
Facilities at any time without the Borrower’s prior written consent. 

  

	 	(c)	Settlement Services. The Lender agrees to offer competitive rates for all settlement and deposit services with respect to the Project. 

 

	17.	EVENTS OF DEFAULT 

Each of the events or circumstances set out in the following sub-clauses of this Section 17 which has a Material Adverse Effect shall
be an “Event of Default”. 
  

	 	(a)	the Borrower fails to: 

  

	 	(i)	repay any instalment of principal on any Facility pursuant to the provisions contained in the Finance Documents, provided that no Event of Default shall occur if
remedied within eight (8) days after the Borrower’s receipt of written notice from the Lender regarding such breach; and 

  

	 	(ii)	fails to pay any other amount (other than as specified above), including any interest instalments pursuant to the provisions contained in the Finance Documents;
provided that no Event of Default shall occur if remedied within 30 days after the Borrower’s receipt of written notice from the Lender regarding such breach; 

 

	 	(b)	the Borrower breaches any of the covenants and undertakings set forth in the Finance Documents; provided that no Event of Default shall occur if remedied within 30 days
after the Borrower’s receipt of written notice from the Lender regarding such breach; 

  
 22 

	 	(c)	any Representations and Warranties made or deemed to be made by the Borrower is or proves to have been incorrect or misleading; provided that no Event of Default shall
occur if remedied within 30 days after the Borrower’s receipt of written notice from the Lender regarding such breach; 

  

	 	(d)	an Event of Default caused by the Borrower has occurred and is continuing after the expiry of any applicable grace periods under any Finance Document;

  

	 	(e)	the Borrower closes its business or becomes dissolved or bankrupt; or 

  

	 	(f)	the Borrower is involved in any major financial dispute, lawsuit or arbitration, or has any asset seized, sealed up or enforced, or is investigated or punished by
judicial authorities or administrative authorities (including but not limited to taxation and industrial and commercial administration), which has a Material Adverse Effect; provided that no Event of Default shall occur if remedied effectively
within 30 days after the Borrower’s receipt of written notice from the Lender regarding such breach. 

  

	18.	REMEDIES 

  

	18.1	During the continuance of an Event of Default, the Lender may, by written notice to the Borrower: 

 

	 	(a)	require the Borrower to correct its default within a stipulated time limit; 

 

	 	(b)	suspend or terminate in part or in whole the Facilities granted to the Borrower under the Finance Documents; 

 

	 	(c)	declare that the outstanding principal and interest owing by the Borrower under the Finance Documents shall become immediately due and payable in part or in whole;

  

	 	(d)	directly offset any amounts from any of the Borrower’s accounts at the Account Bank and apply such amounts in repayment of all outstanding principal and accrued
interest with respect to the Loans; 

  

	 	(e)	negotiate with the Borrower on additional conditions for any further Utilisations and payment, or the altering of conditions for Utilisations and payment corresponding
with changes in the Borrower’s credit standing (such as lowering the threshold amount of authorized payment, or requiring recovery of loan proceeds of any Facility paid in violation of this Agreement); 

 

	 	(f)	demand that other measures of guarantee are provided by the Borrower; and 

  

	 	(g)	request other reasonable measures be taken by the Borrower as the Lender reasonably deems necessary and possible. 

 

	19.	TRANSFERS AND PARTICIPATION 

 

	19.1	Assignments and Transfers by Lender 

 Subject to the terms and conditions in this Section 19, the Lender may: 
  

	 	(a)	assign a portion of its rights under the Finance Documents; or 

  

	 	(b)	transfer by novation a portion of its rights and obligations under the Finance Documents (any such assignment, transfer or novation, a “Lender
Transfer”), 

 to any one or more banks or financial institutions (a “New Lender”);
provided that: 

  
 23 

	 	(i)	the Lender provides thirty (30) Business Days’ prior written notice to the Borrower; 

 

	 	(ii)	the Lender Transfer is not made to any of the competitors in the same industry of the Borrower listed in Schedule 4, or any of their respective Affiliates;

  

	 	(iii)	the Lender Transfer shall be equal to or less than sixty percent (60%) of its original Commitment; and 

 

	 	(iv)	all documentation to be entered into by the Lender, any new lenders and/or the Borrower in connection with the Lender Transfer (including any amendment and/or
restatement of any Finance Document or any separate loan documentation) shall be in form and substance satisfactory to the Borrower in its sole discretion. The Borrower agrees to consent to a Lender Transfer if such transfer does not increase any
obligations or reduce any rights of the Borrower and/or the Shareholders with respect to any Facility. 

  

	19.2	Syndication 

  

	 	(a)	Subject to the terms and conditions of this Agreement (including Sections 19.1 and 19.2), the Lender may organize a syndicate of lenders (the
“Syndicate”) to whom the Lender may assign, novate or otherwise transfer up to sixty percent (60%) of its original Commitment hereunder (together with the Lender’s rights, interests and obligations related thereto).

  

	 	(b)	In the event a Syndicate is formed pursuant to the terms herein, the Lender shall maintain at all times no less than forty percent (40%) and no more than fifty
percent (50%) of its original Commitment hereunder. 

  

	 	(c)	The Borrower agrees that if the terms and conditions with respect to a Lender Transfer and formation of a Syndicate as set forth in this Section 19 have, in the
Borrower’s opinion, been satisfied, the Borrower will apppoint the Lender as the lead arranger, security agent and facility agent of the Syndicate; provided that the Lender shall at all times remain the lead arranger, security agent and
facility agent of the Syndicate. 

  

	 	(d)	In connection with the Lender’s formation of a Syndicate, the Lender hereby covenants that it shall and shall procure the other lenders of the Syndicate to enter
into an amendment and restatement of this Agreement, and/or any other loan documentation, each in form and substance satisfactory to the Borrower (the “Syndicate Loan Documents”). The Lender agrees that the commercial terms and
conditions of the Syndicate Loan Documents shall: 

  

	 	(i)	 not modify the terms and conditions set forth herein and/or in the other Finance Documents (including, without limitation, the interest rate,

  
 24 

	 	 
interest period, tenor, representations, covenants, security and other terms and conditions); and 

 

	 	(ii)	not increase any obligations or reduce any rights of the Borrower and/or the Shareholders with respect to any Facility. 

 

	 	(e)	The Borrower agrees to use commercially reasonable efforts to cooperate with the Lender in connection with the Syndicate Loan Documents; provided that the Borrower
shall not be required to pay to the Lender or any other member of the Syndicate any additional agency fee, arrangement fee, participation fee, legal fee, or any other amounts in connection with the Syndicate or the Syndicate Loan Documents.

  

	 	(f)	The Lender agrees that the Borrower’s obligations and liabilities under the Finance Documents shall terminate and be fully discharged upon the execution and
effectiveness of the Syndicate Loan Documents. 

  

	19.3	Protective Provisions 

 If
the Lender assigns or transfers any of its rights or obligations under the Finance Documents or changes its facility office, and as a result of circumstances existing at the date the assignment, transfer or change occurs, an Obligor would be obliged
to make a payment to the New Lenders or Lender acting through its new facility office, then the New Lenders or Lender acting through its new facility office is only entitled to receive payment under those Sections to the same extent as the existing
Lender acting through its previous facility office would have been if the assignment, transfer or change had not occurred. 
  

	20.	CHANGES IN OBLIGORS 

 

	20.1	The Borrower may not, without the Lender’s prior written consent, assign or transfer any of its rights, benefits and obligations under this Agreement.

  

	20.2	The Borrower shall ensure that the Shareholders shall only transfer or sell their respective interests in the Borrower to their respective Affiliates upon the
satisfaction of the following: 

  

	 	(a)	the Shareholders give prior notice to the Lender; and 

  

	 	(b)	such transfer does not have a material adverse effect on any rights or interests of the Lender or incur any extra cost for the Lender. 

 

	20.3	The Borrower shall ensure that each Shareholder shall only transfer or sell its interest in the Borrower to another Shareholder upon the satisfaction of the
following: 

  

	 	(a)	the Shareholders give prior notice to the Lender; 

  

	 	(b)	Aleris Asia remains the majority or controlling shareholder; and 

  

	 	(c)	such transfer does not have a material adverse effect on any rights or interests of the Lender, and will not cause the Lender to incur any additional material expense
in relation thereto. 

  
 25 

	20.4	Each transfer, assignment, and novation contemplated in this Section 20 shall be referred to as a “Permitted Transfer”.

  

	21.	Payment Mechanics 

  

	21.1	Reference Banks 

 If a
Reference Bank ceases generally to offer quotations for LIBOR, the Lender shall (in reasonable consultation with the Borrower) appoint another bank or financial institution to replace that Reference Bank. 

 

	21.2	Payments 

 The Lender
shall apply all payments received from or on behalf of an Obligor towards the obligations of the Obligors under the Finance Documents in the following order: 
  

	 	(a)	firstly, in or towards payment pro rata of any unpaid fees, costs and expenses of the Lender under the Finance Documents; 

 

	 	(b)	secondly, in or towards payment pro rata of any accrued interest (other than as provided in (i) above) due but unpaid under this Agreement;

  

	 	(c)	thirdly, in or towards payment pro rata of any principal due but unpaid under this Agreement; 

 

	 	(d)	fourthly, in or towards payment pro rata of any other sum due but unpaid under the Finance Documents; and 

 

	 	(e)	fifthly, any excess to the Borrower. 

  

	21.3	Business Days 

  

	 	(a)	Any payment which is due to be made on a day that is not a Business Day shall be made on the immediately following Business Day in the same calendar month (if there is
one) or the immediately preceding Business Day (if there is not). 

  

	 	(b)	During any extension of the due date for payment of any principal or the Unpaid Sum under paragraph (a) above, interest is payable on the principal or the Unpaid
Sum at the rate payable on the original due date. 

  

	21.4	Currency of Account 

  

	 	(a)	Subject to paragraphs (b) and (c) below, the currency of account and payment for any sum due from the Borrower under any Finance Document shall be the same as
the currency of the Loan extended to the Borrower under which the said sum occurs (i.e., USD for Facility A and RMB for Facility B). 

  

	 	(b)	Any payment in respect of costs, expenses or Taxes shall be made in the currency in which the costs, expenses or Taxes are incurred. 

 

	 	(c)	Any amount expressed to be payable in a currency other than RMB or US Dollars shall be paid in that other currency. 

 

	21.5	Change of Currency 

 If a
change in any currency of a country occurs, this Agreement will, to the extent the Lender reasonably specifies to be necessary, be amended to comply with any generally 

  
 26 

 
accepted conventions and market practice in the London interbank market and otherwise to reflect the change in currency. 

 

	22.	NOTICES 

  

	22.1	Communications in Writing 

Any communication to be made under or in connection with the Finance Documents shall be made in writing and, unless otherwise stated, may
be made by fax, letter or electronic means. 
  

	22.2	Addresses 

 The address
and fax number (and the department or officer, if any, for whose attention the communication is to be made) of each Party for any communication or document to be made or delivered under or in connection with the Finance Documents is: 

 

	 	(a)	Borrower 

 Aleris
Dingsheng Aluminum (Zhenjiang) Co. Ltd. 

 

 

 c/o Aleris Asia Pacific Ltd. 
 Jingkou Science & Tech Industrial Area 
 Zhenjiang, Jiangsu Province, PRC

 Attn:   Managing Director 
 Fax:     216-910-3654 
 With copies to: 

Aleris International, Inc. 
 25825 Science Park Drive 
 Suite 400 

Beachwood, Ohio 44122 
 Attn:   Christopher R. Clegg 
 Fax:     216-910-3654

 And:  
 SNR DENTON 
 Suite 3201 Jardine House 

1 Connaught Place, 
 Central Hong Kong, PRC 
 Attn:   Mitchell Dudek 

Fax:     (852) 2868-0069 
  

	 	(b)	Lender 

 Bank of China
Limited, Zhenjiang Jingkou Sub-Branch 

 

 

 255 Nanmen Street 
 Zhenjiang, Jiangsu Province, PRC 

 Attn:   Huijun Yan 

 

 Fax:     0511-85023498 

  
 27 

 or any substitute address, fax number or department or officer as the Party may notify to
the other Parties, by not less than five (5) Business Days’ notice. 
  

	22.3	Delivery 

  

	 	(a)	Any communication or document made or delivered by one person to another under or in connection with the Finance Documents will only be effective:

  

	 	(i)	if by way of fax, when received in legible form; or 

  

	 	(ii)	if by way of letter, when it has been left at the relevant address or five (5) Business Days after being deposited in the post postage prepaid in an envelope
addressed to it at that address; 

 and, if a particular department or officer is specified as part of its address
details provided under Section 22.2 (Addresses), if addressed to that department or officer. 
  

	 	(b)	Any communication or document to be made or delivered to a Party will be effective only when actually received by the Party. 

 

	22.4	Language 

  

	 	(a)	This Agreement shall be executed in English and Chinese. In the event of any discrepancy between the Chinese version and the English translation, the Chinese version
shall prevail. 

  

	 	(b)	All other documents provided under or in connection with any Finance Document must be in both Chinese and English. 

 

	22.5	Electronic communication 

  

	 	(a)	Notwithstanding the above, any communication to be made between the any of the Parties hereto under or in connection with the Finance Documents may be made by
electronic mail or other electronic means, if the relevant Parties: 

  

	 	(i)	agree that, unless and until notified to the contrary, this is to be an accepted form of communication; 

 

	 	(ii)	notify each other in writing of their electronic mail address and/or any other information required to enable the sending and receipt of information by that means; and

  

	 	(iii)	notify each other of any change to their address or any other such information supplied by them. 

 

	 	(b)	Any electronic communication made between the Parties will be effective only when actually received in readable form. 

 

	23.	DISCLOSURE 

 The Lender may disclose to: 
  

	 	(a)	any of its Affiliates; 

  

	 	(b)	its head office and any other branch; and 

  

	 	(c)	any other person: 

  

	 	(i)	to (or through) whom the Lender intends to assign or transfer (or may potentially assign or transfer) all or any part of its rights and obligations under this
Agreement; 

  
 28 

	 	(ii)	with (or through) whom the Lender intends to enter into (or may potentially enter into) any sub-participation in relation to, or any other transaction under which
payments are to be made by reference to, this Agreement or the Borrower; or 

  

	 	(iii)	to whom, and to the extent that, information is required to be disclosed by any applicable law or regulation, 

any information about the Borrower and the Finance Documents as the Lender shall consider appropriate, provided that the person to whom
such information is to be given (other than the head office of the Lender) has executed a valid written confidentiality undertaking, a copy of which shall be promptly provided to the Borrower. 

 

	24.	DAY COUNT CONVENTION 

Any interest or fee accruing under a Finance Document will accrue from day to day and shall be calculated on the basis of the actual
number of days elapsed and a year of three hundred and sixty (360) days. 
  

	25.	PARTIAL INVALIDITY 

 If, at any time, any provision of the Finance Documents is or becomes illegal, invalid or unenforceable in any respect under any law of any jurisdiction, neither the legality, validity or enforceability
of the remaining provisions nor the legality, validity or enforceability of such provision under the law of any other jurisdiction will in any way be affected or impaired. 

 

	26.	AMENDMENTS AND WAIVERS 

Any term of the Finance Documents may be amended or waived only with the consent of the Lender and the Obligors and any such amendment or
waiver will be binding on all Parties. 
  

	27.	COUNTERPARTS 

 Each Finance Document may be executed in any number of counterparts, and this has the same effect as if the signatures on the counterparts were on a single copy of the Finance Document. 

 

	28.	GOVERNING LAW AND JURISDICTION 

 

	28.1	Governing Law 

 This
Agreement is governed by and shall be construed in accordance with the laws of the PRC. 
  

	28.2	Competent Courts 

  

	 	(a)	The Parties hereto shall discuss with one another to settle any dispute arising under the Finance Documents in the principle of good faith. If no settlement is so
reached to the satisfaction of the Parties to such Finance Documents, any such Party may submit the dispute to the court at the place of incorporation of the Lender. 

 

	 	(b)	During the settlement of the dispute, if such dispute does not affect the performance of other provisions of the Finance Documents, such other provisions of the Finance
Documents shall continue to be performed. 

  
 29 

 This Agreement has been entered into on the date stated at the beginning of this Agreement.

  
 30 

 BORROWER 
  

							
	For and on behalf of	  	)	  		  	
		  	)	  		  	
	ALERIS DINGSHENG ALUMINUM	  	)	  		  	
	(ZHENJIANG) CO., LTD.	  	)	  		  	
	

	  	)	  		  	

  

			
		
	By:	 	 /s/ Roeland Baan

	Name:	 	 Roeland Baan

	Title:	 	  

 LENDER 
  

							
	For and on behalf of	  	)	  		  	
		  	)	  		  	
	BANK OF CHINA LIMITED,	  	)	  		  	
	ZHENJIANG JINGKOU SUB-BRANCH	  	)	  		  	
	

	  	)	  		  	

  

			
		
	By:	 	 /s/

	Name:	 	  

	Title:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00187-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00187-of-00352.parquet"}]]