Document:

Management Equity Investment and Incentive Term Sheet

 Exhibit 10.9 
 Management Equity Investment and Incentive Term Sheet 
  

			
	Name:	  	Layle K. Smith (“you”).
		
	Effective Date:	  	March 3, 2008 or such earlier or later date as the Chief Executive Officer of Noranda Aluminum Inc. (the “Company”) as of the date hereof ceases to be in such position (but no later
than April 3, 2008) (such date, the “Effective Date”).
		
	Term of Employment:	  	Five years, commencing on the Effective Date, subject to earlier termination by either party; term sheet shall automatically be renewed for consecutive one-year terms at the end of the initial
term unless either party gives at least 90 days written notice of its intention not to renew prior to the expiration of a term.
		
	Position:	  	Chief Executive Officer of the Company and Noranda Aluminum Holding Corporation (the “Parent”). You shall also be appointed as a member of the Boards of Directors of the Company and
Parent.
		
	Location:	  	You shall be based out of the Company’s headquarters in Franklin, Tennessee during the regular business work week (i.e., Monday to Friday) except for travel on Company business or during
vacation or holidays.
		
	Base Salary:	  	$750,000.
		
	Annual Bonus:	  	Targeted annual bonus amount is 100% of base salary, with target payout primarily dependent upon achievement of the targets set forth for you in the Company’s bonus plan.
		
	Employee Benefits:	  	You will participate in the employee benefit plans (other than perquisites) made available to senior executives of the Company generally.
		
	Expenses:	  	You will be entitled to receive reimbursement for all reasonable expenses incurred by you in the performance of your duties, provided that you provide all necessary documentation in accordance
with Company policy.
		
	Vacation:	  	You will be entitled to four weeks per annum of paid vacation.
		
	Severance:	  	In the event that your employment is terminated by the Company without Cause or you resign your employment for Good Reason, subject to your execution of a release, the Company will pay you (i)
severance in an amount equal to your then-current base salary for a period of 18 months (the “Severance Period”), and (ii) a pro rata portion of your annual

			
		  	 bonus with respect to the portion of the year in which your termination occurs based on the Company’s actual performance for such full year
and payable at such time as annual bonuses are otherwise paid by the Company. Amounts owed under (i) of this paragraph shall be payable in a lump sum at the beginning of the Severance Period. The Company will also provide you (and your eligible
dependants) continued health benefits for the Severance Period or until you and your dependants are eligible to be covered by a successor employer’s comparable plans, whichever is sooner.
  
 You will not be entitled to any severance (other than accrued and unpaid Base Salary) in the event
that your employment with the Company is terminated for Cause or you resign without Good Reason.
  
 In the event of your disability or death, you or your estate will be paid, in a lump sum, an amount equivalent to your then-current Base Salary for a period of twelve months.

		
	Investment Amount:	  	You will, on the Effective Date, invest $2,000,000 in Parent, pursuant to which you will purchase 100,000 shares of Parent common stock (such shares, the “Purchased Equity”).
Your purchase price per share of Parent common stock will be $20.00. 
		
	Right to Repurchase on Termination for Cause:	  	 In the event that, prior to an IPO and prior to May 29, 2012, the Company, or its applicable subsidiary, terminates your employment for Cause,
each of Apollo Management VI, LP and Apollo Alternative Assets, L.P. (collectively, the “Investor”) and the Parent shall each have the right to repurchase all of your common stock (including common stock that you acquire due to the
exercise of Parent Options (as defined below)) at the lesser of (i) fair market value (as determined by the Board of Directors of the Parent in good faith) and (ii) your original purchase price (as may be subsequently adjusted (e.g., due to
dividends)).
  
 These repurchase rights must generally be exercised within 90 days
following your termination of employment. However, if necessary to avoid liability accounting, the repurchase of shares you receive in settlement of Company Options will not take place until six months and one day following the exercise of such
Company Options. Repurchase rights will expire on an IPO. 

		
	Company Shareholder Agreement:	  	You will be party to the existing Parent securityholders agreement (with respect to which you will enter into an adoption agreement), a subscription agreement, and an option
agreement

  

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		  	providing for, among other things:
		  	 •   customary tag-along rights that will permit you to sell your shares of common stock, on a pro rata basis, in
any transaction in which the Investor disposes of at least 10% of its position;

		
		  	 •   customary drag-along rights which will require you to sell your shares of common stock, on a pro rata basis, in
any transaction in which the Investor disposes of at least 10% of its position;

		
		  	 •   piggy back registration rights entitling you to register your shares of Common Stock (or other applicable securities)
in connection with registered offerings, subject to customary limitations (such as compliance with underwriter cutbacks, no right to participate in registrations statements on Form S-4 or S-8, etc.). Piggyback registration rights shall not apply in
an IPO unless the Investor is selling shares in the IPO;

		
		  	 •   permitted transfers for estate-planning purposes; and

		
		  	 •   non-compete/non-solicitation provisions.

		
	Company Options:	  	You will, on the Effective Date, be granted options to purchase 200,000 shares of Parent common stock (the “Parent Options”). The Parent Options will have a strike price equal to the
fair market value of Parent common stock on the date of grant (which is currently $20.00 per share of Parent common stock).
		
		  	The Parent Options will vest in two categories, provided that you are employed with the Company and its subsidiaries through each applicable vesting date:
		
		  	 (i)     50% of the Parent Options (“Tranche A Options”) will vest in equal tranches on each of the
12th, 24th, 36th, 48th and 60th month anniversaries of the Effective Date;

		
		  	 (ii)    50% of the Parent Options will vest at such time as the Investor realizes at least a 30% annualized rate of return
from the Effective Date (when taking into account the equity value of the Parent as of immediately after the Effective Date) based on cash proceeds received by the Investor.

		
		  	Vested Parent Options will generally have a 90-day post-termination exercise period (180 days for death or disability), except that all options are forfeited on a termination for Cause. The
90-day and 180-day periods set forth above will be extended

  

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		  	 if, as of the scheduled expiration of the applicable period, (i) the common stock underlying the Parent Options is not publicly traded and (ii)
neither the Investor nor the Parent has offered to repurchase, upon or shortly following the conclusion of such period, the common stock subject to such Parent Options at fair market value (as determined by the Board of Directors of the Parent in
good faith). Any such extension shall conclude upon the earlier of (x) the first date subsequent to the conclusion of such period that either the Investor or Parent offers to repurchase the common stock subject to such Parent Options at fair market
value (as determined by the Board of Directors of the Parent in good faith) or (y) expiration of the scheduled term of the Parent Options.
  
 The Parent Options will have a scheduled term of no less than 10 years.

		
	Treatment of Purchased Equity and Parent Options upon a Change in Control:	  	 In connection with any change in control of the Parent (as defined in Parent’s equity compensation plan) other than an Early CIC (as defined
below), (i) the value per share of Parent common stock subject to your Purchased Equity shall be the value of the consideration paid or provided in connection with such change in control and (ii) all unvested Tranche A Options shall vest on the
earlier of (x) the 18-month anniversary of the consummation of such sale or (y) termination of your employment without Cause or for Good Reason during such 18-month period.
  
 In the event that there is a change in control of Parent on or prior to the 18-month anniversary of
the Effective Date (an “Early CIC”), you will be entitled to the following:
  
 •   In the event that the consideration paid for common stock of the Parent in such Early CIC is cash, your
Purchased Equity shall, subject to the vesting requirements set forth below, be sold for the greater of (i) $8 million (reduced by any amounts previously realized by you in connection with such Purchased Equity) and (ii) such amount as you are
otherwise entitled to receive pursuant to the transaction effectuating such Early CIC.
  
 •   In the event that stock of another entity is provided as consideration for common stock of the Parent in
such Early CIC, you shall, subject to the vesting requirements set forth below, have the option of (i) cashing out your Purchased Equity for $8 million (reduced by any amounts previously realized by you in connection with such Purchased Equity) or
(ii) to the extent permitted by the acquiring entity,

  

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		  	converting your Purchased Equity into equity of the entity resulting from such Early CIC
		
		  	 •   Any cash you are entitled to receive with respect to your Purchased Equity in
connection with such Early CIC shall vest and be paid to you in equal 50% installments on each of the six- and 12-month anniversaries of such Early CIC, subject to your continued employment, provided that payment of any unpaid installment shall be
accelerated upon a termination of your employment without Cause or for Good Reason.
  
 •   All unvested Tranche A Options shall vest in full upon such Early CIC.

		
	Restrictive Covenants:	  	Noncompetition with the Company or any of its affiliates and no hire and nonsolicitation of the Company’s and its affiliates’ employees, independent contractors or customers
(including former employees and independent contractors) as set forth in Section 9 of Parent’s securityholders agreement, except that the “Restricted Period” shall apply while you are employed by the Company and for a period of
twenty-four months after termination of employment for any reason. Standard ongoing confidentiality obligation. For the avoidance of doubt, the restrictive covenants shall survive termination of the term of employment.
		
	Cause:	  	Cause is generally defined to include (i) your commission of a felony crime or a crime of moral turpitude, (ii) your willful commission of a material act of dishonesty involving the Company,
(iii) your material breach (which breach is not promptly cured) of your obligations under any agreement entered into between you and the Company or any of its subsidiaries and affiliates, (iv) your willful or continued failure to perform your
duties, (v) your material breach of the Company’s material policies or procedures that is not reasonably curable in the Company’s reasonable discretion or (vi) any other willful misconduct which causes material harm to the Company or its
business reputation, including due to any adverse publicity. A termination will not be for “Cause” under (iii), (iv) or (v) unless the Company has given you 30 days’ prior written notice describing the alleged action(s) and then only
if you have not reasonably cured such actions (except in the case of actions that are not curable).
		
	Good Reason:	  	Resignation for Good Reason means your voluntary resignation after any of the following actions are taken by the Company or any of its subsidiaries without your consent: (i) a reduction in

  

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		  	your base salary or bonus potential (but not including any diminution related to an across-the-board compensation reduction applying to senior management of the Company generally), (ii) the
assignment to you of duties materially inconsistent with your duties as set forth in this termsheet or a material diminution of your responsibilities, (iii) a material breach by the Company of your employment agreement, or (iv) a notice by the
Company of non-extension of the term of employment; provided, however, that none of the events described in the foregoing clauses (i), (ii), (iii) or (iv) will constitute Good Reason unless you have (within 90 days of becoming aware of the events
which constitute Good Reason) notified the Company in writing describing the events which constitute Good Reason and then only if the Company fails to cure such events within thirty (30) days after the Company’s receipt of such written notice.

 By signing below, the parties agree that this termsheet will be binding upon the parties and constitutes a binding
commitment on the part of the undersigned executive to purchase the Purchased Equity. 
  

			
	NORANDA ALUMINUM, INC.
		
	BY:	 	 /s/ Alan Brown

	Name:	 	Alan Brown, Esq.
	Title:	 	Vice President – Human Resources
	
	NORANDA ALUMINUM HOLDING CORPORATION
		
	BY:	 	 /s/ Eric L. Press

	Name:	 	Eric L. Press
	Title:	 	Chairman

  

	
	 /s/ Layle K. Smith

	LAYLE K. SMITH

  

 6Non Qualified Stock Option Agreement

 Exhibit 10.10 
  

			
		  	NON QUALIFIED STOCK OPTION AGREEMENT (this “Agreement”) dated as of February 22, 2008, between NORANDA ALUMINUM HOLDING CORPORATION, a Delaware corporation
(the “Company”), and the Optionee set forth on the signature page to this Agreement (the “Optionee”).

 WHEREAS, on February 22, 2008 the Company and the Executive entered into a definitive
term sheet with respect to the Executive’s employment as the Chief Executive Officer of the Company and of Noranda Aluminum, Inc. (“OpCo.”) and certain related terms (the “Term Sheet”); 
 WHEREAS, the Company, acting through the Committee with the consent of the Company’s Board of Directors (the “Board”) has
agreed to grant to the Optionee, effective on the Effective Date (as defined in the Term Sheet) (the “Grant Date”), an option under the Amended and Restated Noranda Aluminum Holding Corporation 2007 Long-Term Incentive Plan (the
“Plan”) to purchase a number of shares of the Company’s common stock, par value $0.01 per share (“Shares”) on the terms and subject to the conditions set forth in this Agreement and the Plan; and 
 WHEREAS, the Optionee has committed to purchase Shares pursuant to a subscription agreement dated February 22, 2008 (the
“Subscription Agreement”) and in connection therewith, signed an Adoption Agreement pursuant to which he became a party to the Amended and Restated Securityholders Agreement relating to the Company, by and among the Company and
certain of its securityholders, dated as of October 23, 2007, as the same may be amended from time to time (the “Securityholders Agreement”); 
 WHEREAS, future securities in the Company (including those being acquired pursuant to this Agreement) owned by the Optionee shall be subject to the terms of the Securityholders Agreement. 
 NOW, THEREFORE, in consideration of the promises and of the mutual agreements contained in this Agreement, the parties hereto hereby agree as
follows: 
 Section 1. The Plan. The terms and provisions of the Plan are hereby incorporated into this Agreement as if set forth
herein in their entirety. In the event of a conflict between any provision of this Agreement and the Plan, the provisions of this Agreement shall control. A copy of the Plan may be obtained from the Company by the Optionee upon request. Capitalized
terms used herein and not otherwise defined herein shall have the respective meanings ascribed thereto in the Plan or the Securityholders Agreement, as the case may be. 
 Section 2. Option; Option Price. Effective on the Grant Date, on the terms and subject to the conditions of the Plan and this Agreement, the Company hereby grants to the Optionee the option (the
“Option”) to purchase Shares pursuant to Tranche A options (“Tranche A Options”) and Tranche B options (“Tranche B Options”) at the price per Share (the “Option Price”) and in the
amounts set forth on the signature page hereto. To the extent permitted by the 

 
Committee, payment of the Option Price may be made in any manner specified by Section 5.6 of the Plan. The Option is not intended to qualify for
federal income tax purposes as an “incentive stock option” within the meaning of Section 422 of the Code. 
 Section 3.
Term. The term of the Option (the “Option Term”) shall commence on the Grant Date and expire on the tenth anniversary of the Grant Date, unless the Option shall have sooner been terminated in accordance with the terms of the
Plan (including, without limitation, Article V of the Plan) or this Agreement. 
 Section 4. Vesting. Subject to the
Optionee’s not having a Termination of Relationship prior to the applicable vesting date and except as otherwise set forth in Section 7, the Options shall become non-forfeitable and exercisable (any Options that shall have become
non-forfeitable and exercisable pursuant to Section 4, the “Vested Options”) according to the following provisions: 
 (a) Tranche A Options. Twenty-percent (20%) of the Tranche A Options shall become Vested Options on each of the first five anniversaries of the Grant Date. In the event of the consummation of a Change in Control of the Company
on or prior to the 18-month anniversary of the Grant Date, each then-outstanding Tranche A Option which has not theretofore become a Vested Option shall become a Vested Option. In the event of the consummation of a Change in Control of the Company
after the 18-month anniversary of the Grant Date, each then-outstanding Tranche A Option which has not theretofore become a Vested Option and which is scheduled to vest on each of the remaining vesting dates based on anniversaries of the Grant Date
will vest upon the earlier of (i) the Optionee’s continued employment with the Company for 18 months after such Change in Control or (ii) a Termination of Relationship for any reason other than for Cause (as defined in
Section 22), within 18 months following the consummation of such Change in Control, provided that Tranche A Options shall otherwise continue to vest in accordance with the terms of the first sentence of this Section 4(a).

 (b) Tranche B Options. All of the Tranche B Options shall become Vested Options and shall become exercisable on the date that the
Investor IRR (measured as of, and from immediately after, the Grant Date and not taking into account any increase in such Investor IRR prior to the Grant Date) is equal to or exceeds 30% (the “Tranche B Targets”). 
 All decisions by the Committee with respect to any calculations pursuant to this Section 4 (absent manifest error), including the Investor IRR and the date
the Investor IRR is equal to or exceeds the Tranche B Targets, shall be final and binding on the Optionee. Except as otherwise provided in this Agreement, all unvested Options will immediately terminate upon a Termination of Relationship.

 Section 5. Restriction on Transfer/Securityholders Agreement. The Option may not be transferred, pledged, assigned,
hypothecated or otherwise disposed of in any way by the Optionee, except (i) if permitted by the Board or the Committee, (ii) by will or the laws of descent and distribution or (iii) pursuant to beneficiary designation procedures
approved by the Company. The Option shall not be subject to execution, attachment or similar process. Shares of Common Stock acquired pursuant to the exercise of Options hereunder will be subject to the Securityholders Agreement. Any attempted
assignment, transfer, pledge, hypothecation or other 
  

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disposition of the Option contrary to the provisions of this Agreement or the Securityholders Agreement shall be null and void and without effect.

 Section 6. Optionee’s Employment. Nothing in this Agreement or in the Option shall confer upon the Optionee any right to
continue in the employ of the Company or any of its Subsidiaries or interfere in any way with the right of the Company or its Subsidiaries, as the case may be, in its sole discretion, to terminate the Optionee’s employment or to increase or
decrease the Optionee’s compensation at any time. 
 Section 7. Termination. 
 (a) The Option shall automatically terminate and shall become null and void, be unexercisable and be of no further force and effect upon the earliest of:

 (i) the tenth anniversary of the Grant Date; 
 (ii) as follows in the case of a Termination of Relationship for death or
Disability: (x) in the event the Shares are traded on any national securities exchange or any national market system (“Publicly Traded”), the 180th day following the Termination of Relationship, (y) in the event the Shares are not Publicly Traded, but either Apollo or the Investor communicates prior to the 150th day following the Termination of Relationship an offer to repurchase, effective upon or shortly following the conclusion of the 180-day period following the Termination of
Relationship, the Shares subject to the then-outstanding Options at Fair Market Value (a “Repurchase Offer”), the 180th day
following the Termination of Relationship and (z) in the event the Shares are not Publicly Traded and neither the Parent nor the Investor has made a Repurchase Offer, until the earlier of (1) the first date on which the Parent or the
Investor offers to repurchase the Shares subject to the then-outstanding Options at Fair Market Value (a “Subsequent Repurchase Offer”) or (2) the tenth anniversary of the Grant Date; 
 (iii) as follows in the case of a Termination of Relationship that is neither for
Cause nor due to death or Disability: (x) in the event the Shares are Publicly Traded, the 90th day following the Termination of Relationship,
(y) in the event the Shares are not Publicly Traded, but either Apollo or the Investor communicates prior to the 60th day following the
Termination of Relationship a Repurchase Offer effective upon or shortly following the conclusion of the 90-day period following the Termination of Relationship, the 90th day following the Termination of Relationship and (z) in the event the Shares are not Publicly Traded and neither the Parent nor the Investor has made a Repurchase Offer, until the earlier of (1) the first
date on which a Subsequent Repurchase Offer is made or (2) the tenth anniversary of the Grant Date; and 
 (iv) the day
of the Termination of Relationship in the case of a Termination of Relationship with Cause. 
 (b) Except as otherwise provided in
Section 4(a) of this Agreement, upon a Termination of Relationship for any reason, the unvested portion of the Option (i.e., that portion which does not constitute Vested Options) shall terminate on the date the Termination of
Relationship occurs. 
  

 3 

 Section 8. Securities Law Representations. The Optionee acknowledges that the Option and the
Shares are not being registered under the Securities Act of 1933, as amended (the “Securities Act”), based, in part, on either (i) reliance upon an exemption from registration under Securities and Exchange Commission Rule 701
promulgated under the Securities Act or (ii) the fact that the Optionee is an “accredited investor” (as defined under the Securities Act and the rules and regulations promulgated thereunder), and, in each of (i) and
(ii) above, a comparable exemption from qualification under applicable state securities laws, as each may be amended from time to time. The Optionee, by executing this Agreement, hereby makes the following representations to the Company and
acknowledges that the Company’s reliance on federal and state securities law exemptions from registration and qualification is predicated, in substantial part, upon the accuracy of these representations: 
 (a) The Optionee is an “accredited investor” within the meaning of Rule 501(a)(1), (2) or (3) of the Securities Act. 
 (b) The Optionee is acquiring the Option and, if and when he exercises the Option, will acquire the Shares solely for the Optionee’s own account,
for investment purposes only, and not with a view to or an intent to sell, or to offer for resale in connection with any unregistered distribution, all or any portion of the Shares or Option within the meaning of the Securities Act and/or any
applicable state securities laws. 
 (c) The Optionee acknowledges that he has not acquired the Option or the Shares as a result of any
general solicitation or general advertising in the United States, including any meeting whose attendees have been invited by general solicitation or general advertising. 
 (d) The Optionee has had an opportunity to ask questions and receive answers from the Company regarding the terms and conditions of the Option and the restrictions imposed on any Shares purchased upon exercise of the
Option. The Optionee has been furnished with, and/or has access to, such information as he considers necessary or appropriate for deciding whether to exercise the Option and purchase the Shares. However, in evaluating the merits and risks of an
investment in the Shares, the Optionee has and will rely only upon the advice of his own legal counsel, tax advisors, and/or investment advisors. 
 (e) The Optionee is aware that the Option may be of no practical value, that any value it may have depends on its vesting and exercisability as well as an increase in the Fair Market Value of the underlying Shares to an amount in excess of
the Option Price, and that any investment in common shares of a closely held corporation such as the Company is non-marketable, non-transferable and could require capital to be invested for an indefinite period of time, possibly without return, and
at substantial risk of loss. 
 (f) The Optionee understands that the Option and the Shares are being offered in a Acquisition not involving
any public offering within the United States within the meaning of the Securities Act and that the Option and the Shares have not been and will not be registered under the Securities Act, and that the Option and the Shares are “restricted
securities” as defined by Rule 144(a)(3) under the Securities Act, and that, under such laws and applicable regulations, such securities may be resold without registration under the Securities Act only in certain limited circumstances,
including in accordance with the conditions of Rule 144 promulgated under the 

  

 4 

 
Securities Act or in an offshore Acquisition meeting the requirements of Rule 903 or 904 of Regulation S under the Securities Act, each as presently in
effect. The Optionee acknowledges reviewing a copy of Rule 144 promulgated under the Securities Act and Regulation S under the Securities Act, as presently in effect, and represents that he is familiar with such rule, and understands the resale
limitations imposed thereby and by the Securities Act and the applicable state securities law. 
 (g) The Optionee agrees that he will comply
with all applicable laws and regulations in effect in any jurisdiction in which he sells any of the securities or otherwise transfers any interest therein. 
 (h) The Optionee has read and understands the restrictions and limitations set forth in the Securityholders Agreement, the Plan and this Agreement. 
 (i) The Optionee understands and acknowledges that, if and when he exercises the Option, (i) any certificate evidencing the Shares (or evidencing
any other securities issued with respect thereto pursuant to any stock split, stock dividend, merger or other form of reorganization or recapitalization) when issued shall bear any legends which may be required by applicable federal and state
securities laws, and (ii) except as otherwise provided under the Securityholders Agreement, the Company has no obligation to register the Shares or file any registration statement under federal or state securities laws. 
 Section 9. Designation of Beneficiary. The Optionee may appoint any individual or legal entity in writing as his beneficiary to receive any
Option (to the extent not previously terminated or forfeited) under this Agreement upon the Optionee’s death or Disability. The Optionee may revoke his designation of a beneficiary at any time and appoint a new beneficiary in writing. To be
effective, the Optionee must complete the designation of a beneficiary or revocation of a beneficiary by written notice to the Company under Section 11 of this Agreement before the date of the Optionee’s death. In the absence of a
beneficiary designation, the legal representative of the Optionee’s estate shall be deemed the beneficiary. 
 Section 10.
Notices. All notices, claims, certifications, requests, demands and other communications hereunder shall be in writing and shall be deemed to have been duly given and delivered if personally delivered or if sent by nationally-recognized
overnight courier, by telecopy, or by registered or certified mail, return receipt requested and postage prepaid, addressed as follows: 
 If
to the Company, to it at: 
 If to the Company or OpCo., to: 
  

			
	 Noranda Aluminum Holding Corporation

	 c/o Apollo Management VI, L.P.

	 9 West 57th Street

	 43rd
Floor

	Facsimile:	 	(212) 515-3288
	Attention:	 	Eric Press

  

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 with a copy (which shall not constitute notice) to: 
  

			
	Apollo Management, L.P.
	9 West 57th Street
	43rd Floor
	New York, New York 10019
	Facsimile:	 	(212) 515-3288
	Attention:	 	Eric Press
		
	and	 	
	
	Wachtell, Lipton, Rosen & Katz
	51 West 52nd Street
	New York, New York 10019
	Facsimile:	 	(212) 403-2269
	Attention:	 	Andrew J. Nussbaum, Esq.

 If to the Optionee, to him at the address set forth on the signature page hereto; or to such other address as the
party to whom notice is to be given may have furnished to the other party in writing in accordance herewith. Any such notice or other communication shall be deemed to have been received (a) in the case of personal delivery, on the date of such
delivery (or if such date is not a business day, on the next business day after the date of delivery), (b) in the case of nationally-recognized overnight courier, on the next business day after the date sent, (c) in the case of telecopy
transmission, when received (or if not sent on a business day, on the next business day after the date sent), and (d) in the case of mailing, on the third business day following that on which the piece of mail containing such communication is
posted. 
 Section 11. Waiver of Breach. The waiver by either party of a breach of any provision of this Agreement must be in
writing and shall not operate or be construed as a waiver of any other or subsequent breach. 
 Section 12. Optionee’s
Undertaking. The Optionee hereby agrees to take whatever additional actions and execute whatever additional documents the Company may in its reasonable judgment deem necessary or advisable in order to carry out or effect one or more of the
obligations or restrictions imposed on the Optionee pursuant to the express provisions of this Agreement and the Plan; provided, however, that such additional actions and documents are consistent with the terms of this Agreement. 
 Section 13. Modification of Rights. The rights of the Optionee are subject to modification and termination in certain events as provided in
this Agreement and the Plan (with respect to the Options granted hereby). Notwithstanding the foregoing, the Optionee’s rights under this Agreement and the Plan may not be materially impaired without the Optionee’s prior written consent.

 Section 14. Governing Law. THIS AGREEMENT WILL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF
DELAWARE, 

  

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WITHOUT GIVING EFFECT TO ANY CHOICE OR CONFLICT OF LAW PROVISION OR RULE (WHETHER OF THE STATE OF DELAWARE OR ANY OTHER JURISDICTION) THAT WOULD CAUSE THE
LAWS OF ANY JURISDICTION OTHER THAN THE STATE OF DELAWARE TO BE APPLIED. IN FURTHERANCE OF THE FOREGOING, THE INTERNAL LAW OF THE STATE OF DELAWARE WILL CONTROL THE INTERPRETATION AND CONSTRUCTION OF THIS AGREEMENT, EVEN IF UNDER SUCH
JURISDICTION’S CHOICE OF LAW OR CONFLICT OF LAW ANALYSIS, THE SUBSTANTIVE LAW OF SOME OTHER JURISDICTION WOULD ORDINARILY APPLY. 
 Section 15. Restrictive Covenants. The grant, vesting and exercise of Options pursuant to this Agreement shall be subject to the Optionee’s continued compliance with the restrictive covenants in Section 9 of the
Securityholders Agreement as modified pursuant to the Term Sheet. 
 Section 16. Withholding. As a condition to exercising this
Option in whole or in part, the Optionee will pay, or make provisions satisfactory to the Company for payment of, any Federal, state and local taxes required to be withheld in connection with such exercise. 
 Section 17. Adjustment. In the event of any event described in Article X of the Plan occurring after the Grant Date, the adjustment
provisions (including cash payments) as provided for under Article X of the Plan shall apply. 
 Section 18. Counterparts. This
Agreement may be executed in one or more counterparts, and each such counterpart shall be deemed to be an original, but all such counterparts together shall constitute but one agreement. 
 Section 19. Entire Agreement. This Agreement and the Plan (and the other writings referred to herein) constitute the entire agreement between
the parties with respect to the subject matter hereof and thereof and supersede all prior written or oral negotiations, commitments, representations and agreements with respect thereto. 
 Section 20. Severability. It is the desire and intent of the parties hereto that the provisions of this Agreement be enforced to the fullest
extent permissible under the laws and public policies applied in each jurisdiction in which enforcement is sought. Accordingly, if any particular provision of this Agreement shall be adjudicated by a court of competent jurisdiction to be invalid,
prohibited or unenforceable for any reason, such provision, as to such jurisdiction, shall be ineffective, without invalidating the remaining provisions of this Agreement or affecting the validity or enforceability of such provision in any other
jurisdiction. Notwithstanding the foregoing, if such provision could be more narrowly drawn so as not to be invalid, prohibited or unenforceable in such jurisdiction, it shall, as to such jurisdiction, be so narrowly drawn, without invalidating the
remaining provisions of this Agreement or affecting the validity or enforceability of such provision in any other jurisdiction. 
 Section 21. Waiver of Jury Trial. Each party hereto hereby irrevocably and unconditionally waives, to the fullest extent it may legally and effectively do so, trial by jury in any suit, action or proceeding arising hereunder.

  

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 Section 22. Definitions. As used in this Agreement, the following terms shall have the
meanings set forth below: 
 (a) “Cause” means a Termination of Relationship by the Company or any of its Subsidiaries due to
the Optionee’s: (i) commission of a crime or an act of moral turpitude; (ii) willful commission of a material act of dishonesty involving OpCo.; (iii) material breach of the Optionee’s obligations under any agreement entered
into between the Optionee and OpCo. or any of its Subsidiaries or Affiliates; (iv) willful or continued failure to perform the Optionee’s duties; (v) material breach of OpCo.’s material policies or procedures that is not
reasonably curable in OpCo.’s discretion; or (vi) any other willful misconduct which causes material harm to OpCo. or its business reputation, including due to adverse publicity; provided, however, that none of the events described in the
foregoing clauses (iii), (iv) or (v) shall constitute Cause unless the Company has notified the Optionee in writing describing the events which constitute Cause and then only if the Optionee fails to cure such events within 30 days after
the Optionee’s receipt of such written notice (provided that, in the event such breach is not curable, no notice period shall be required). 
 (b) “Disability” means (i) the Optionee’s inability to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or
can be expected to last for a continuous period of not less than 12 months, or (ii) the Optionee is, by reason of any medically determinable physical or mental impairment which can be expected to last for a continuous period of not less than 12
months, receiving income replacement benefits for a period of not less than three months under an accident, disability or health plan covering employees of the Company. Whether the Optionee has incurred a “Disability” shall be determined
by a physician selected by the Company or its insurers, which physician is reasonably acceptable to the Optionee (or the Optionee’s legal representative). 
 (c) “Good Reason” means a Termination of Relationship by the Optionee within 90 days after any of the following actions are taken by OpCo. or any of its Subsidiaries without the Optionee’s
written consent: (i) a reduction of the Optionee’s annual base salary or target bonus opportunity under any bonus plan maintained by OpCo. or any of its Subsidiaries (but not including any diminution related to a broader compensation
reduction that is not limited to any particular employee or executive of OpCo. or any of its Subsidiaries); (ii) the assignment to the Optionee of duties materially inconsistent with the Optionee’s duties set forth in the Term Sheet or a
material diminution in the Optionee’s responsibilities; (iii) a material breach by OpCo. of the Term Sheet; or (iv) a notice by OpCo. of non-extension of the term of employment set forth in the Term Sheet; provided, however, that none
of the events described in the foregoing clauses (i), (ii), (iii) or (iv) shall constitute Good Reason unless the Optionee has (within 90 days of becoming aware of the events which constitute Good Reason) notified OpCo. in writing
describing the events which constitute Good Reason and then, only if OpCo. fails to cure such events within 30 days after OpCo.’s receipt of such written notice. 
  

 8 

 IN WITNESS WHEREOF, the parties hereto have executed this Nonqualified Stock Option Agreement as
of the date first written above. 
  

							
		 		 	NORANDA ALUMINUM HOLDING CORPORATION
				
		 		 	By:	 	 /s/ Alan K. Brown

		 		 	Name:	 	Alan K. Brown
		 		 	Title:	 	Secretary and General Counsel
			
		 		 	OPTIONEE
			
		 		 	See attached signature page

  

 9 

							
		 		 	LAYLE K. SMITH
			
		 		 	 /s/ Layle K. Smith

			
		 		 	Last address on the records of the Company:
			
	 Number of Shares of Common Stock subject to Tranche A Options:
	 		 	100,000
			
	 Number of Shares of Common Stock subject to Tranche B Options:
	 		 	100,000
			
	 Option Price for Tranche A Options and Tranche B Options:
	 		 	$20.00 each

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