Document:

Exhibit 10.6

Exhibit 10.6

EXECUTION COPY

CANADIAN PLEDGE AGREEMENT

CANADIAN PLEDGE AGREEMENT, dated as of October 13, 2010 (this “Agreement”), by
ASSOCIATED MATERIALS CANADA LIMITED (“Associated”), an Ontario Corporation, GENTEK CANADA
HOLDINGS LIMITED (“Gentek”), an Ontario Corporation and GENTEK BUILDING PRODUCTS LIMITED
PARTNERSHIP, an Ontario limited partnership, by its general partner, Gentek (“LP”), each of
the subsidiaries listed on Schedule 1 hereto (each such subsidiary, individually, a “Canadian
Subsidiary Pledgor” and, collectively, the “Canadian Subsidiary Pledgors”; and,
together with Associated, Gentek and LP, the “Canadian Pledgors”), and UBS AG CANADA
BRANCH, as Canadian Collateral Agent for the Secured Parties (as defined below) (in such capacity,
together with its successors in such capacity, the “Canadian Collateral Agent”).

W I T N E S S E T H:

WHEREAS, (1) CAREY INTERMEDIATE HOLDINGS CORP., a Delaware corporation (“Holdings”), the US
Borrowers and the Canadian Borrowers (collectively, the “Borrowers”) have entered into a Revolving
Credit Agreement, dated as of October 13, 2010 (the “Credit Agreement”), with the banks, financial
institutions and other institutional lenders and investors from time to time parties thereto (each
individually a “Lender” and collectively, the “Lenders”), UBS AG, STAMFORD BRANCH, as US
Administrative Agent, US Collateral Agent, and a US Letter of Credit Issuer and a Canadian Letter
of Credit Issuer, UBS AG CANADA BRANCH, as Canadian Administrative Agent and Canadian Collateral
Agent, WELLS FARGO CAPITAL FINANCE, LLC, as Co-Collateral Agent, DEUTSCHE BANK AG NEW YORK BRANCH,
as a US Letter of Credit Issuer, DEUTSCHE BANK AG CANADA BRANCH, as a Canadian Letter of Credit
Issuer, WELLS FARGO BANK, NATIONAL ASSOCIATION as a US Letter of Credit Issuer and a Canadian
Letter of Credit Issuer and UBS LOAN FINANCE LLC, as Swingline Lender, pursuant to which the
Canadian Lenders have severally agreed to make loans to the Borrowers and the Letter of Credit
Issuers have agreed to issue letters of credit for the account of the Borrowers upon the terms and
subject to the conditions set forth therein, (2) one or more Cash Management Banks may from time to
time provide Cash Management Services pursuant to Secured Cash Management Agreements to any Credit
Party and (3) one or more Hedge Banks may from time to time enter into Secured Hedging Agreements
with any Credit Party (clauses (1), (2) and (3) collectively, the “Extensions of Credit”);

WHEREAS, pursuant to the Canadian Guarantee, dated as of October 13, 2010 (the “Canadian
Guarantee”), each of the Canadian Pledgors (other than in respect of their own obligations) and
their subsidiaries party thereto have agreed to guarantee to the Canadian Collateral Agent, for the
benefit of the Secured Parties, the prompt and complete payment and performance when due (whether
at the stated maturity, by acceleration or otherwise) of the Canadian Obligations;

WHEREAS, each Canadian Pledgor acknowledges that it will derive substantial direct and
indirect benefit from the making of the Extensions of Credit and have agreed to secure their
obligations with respect thereto pursuant to this Agreement;

 

 

 

WHEREAS, it is a condition precedent to the obligations of the Canadian Lenders and Canadian
the Letter of Credit Issuers to make their respective Extensions of Credit to the Canadian
Borrowers under the Credit Agreement that the Canadian Pledgors shall have executed and delivered
this Agreement to the Canadian Collateral Agent for the benefit of the Secured Parties; and

WHEREAS, (1) the Canadian Pledgors are the legal and beneficial owners of the Capital Stock
described in Schedule 2 and issued by the entities named therein (such Capital Stock, together with
all other Capital Stock required to be pledged pursuant to Section 9.11 of the Credit Agreement
(the “After-acquired Shares”), are referred to collectively herein as the “Pledged
Shares”), and (2) each of the Canadian Pledgors is the legal and beneficial owner of the
promissory notes, chattel paper and instruments evidencing Indebtedness owed to it described in
Schedule 2 and issued by the entities named therein (such notes and instruments, together with any
other Indebtedness owed to any Canadian Pledgor hereafter and required to be pledged pursuant to
Section 9.11(a) of the Credit Agreement (the “After-acquired Debt”), are referred to
collectively herein as the “Pledged Debt”), in each case as such schedule may be amended
pursuant to Section 9.11(a) of the Credit Agreement.

NOW, THEREFORE, in consideration of the premises and for other good and valuable
consideration, the receipt and adequacy of which are hereby acknowledged, and to induce the Agents
and the Canadian Lenders and the Canadian Letter of Credit Issuers to enter into the Credit
Agreement and to induce the Canadian Lenders and the Canadian Letter of Credit Issuers to make
their respective Extensions of Credit to the Canadian Borrowers under the Credit Agreement, to
induce one or more Cash Management Banks to provide Cash Management Services pursuant to Secured
Cash Management Agreements to any Credit Party and to induce one or more Hedge Banks to enter into
Secured Hedging Agreements with each Credit Party, the Canadian Pledgors hereby agree with the
Canadian Collateral Agent, for the benefit of the Secured Parties, as follows:

1. Defined Terms.

(a) Unless otherwise defined herein, terms defined in the Credit Agreement and used herein
(including terms used in the preamble and the recitals) shall have the meanings given to them in
the Credit Agreement and all terms defined in the PPSA from time to time in effect or in the
Securities Transfer Act (Ontario) from time to time in effect (together with any regulations
thereunder, the “STA”) and not defined herein or in the Credit Agreement shall have the
meanings specified therein. References to sections of the PPSA or the STA shall be construed to
also refer to any successor sections.

(b) The rules of construction and other interpretive provisions specified in Sections 1.2,
1.5, 1.6 and 1.7 of the Credit Agreement shall apply to this Agreement, including terms defined in
the preamble and recitals hereto.

(c) The following terms shall have the following meanings:

“After-acquired Debt” shall have the meaning assigned to such term in the recitals
hereto.

 

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“After-acquired Shares” shall have the meaning assigned to such term in the recitals
hereto.

“Agreement” shall have the meaning assigned to such term in the preamble hereto.

“Canadian Borrowers” shall have the meaning assigned to the term “Canadian Borrowers”
in the Credit Agreement.

“Canadian Collateral Agent” shall have the meaning assigned to such term in the
preamble hereto.

“Canadian Guarantee” shall have the meaning assigned to such term in the recitals
hereto.

“Canadian Obligations” shall have the meaning assigned to the term “Canadian
Obligations” in the Credit Agreement.

“Canadian Pledgors” shall have the meaning assigned to such term in the preamble
hereto.

“Canadian Subsidiary Pledgors” shall have the meaning assigned to such term in the
preamble hereto.

“Company” shall have the meaning assigned to such term in the preamble hereto.

“Credit Agreement” shall have the meaning assigned to such term in the recitals
hereto.

“Extensions of Credit” shall have the meaning assigned to such term in the recitals
hereto.

“Lenders” shall have the meaning assigned to such term in the recitals hereto.

“Permitted Liens” shall mean any Lien on the Collateral expressly permitted to be
granted pursuant to the Credit Agreement.

“Pledged Debt” shall have the meaning assigned to such term in the recitals hereto.

“Pledged Shares” shall have the meaning assigned to such term in the recitals hereto.

“PPSA” shall mean the Personal Property Security Act (Ontario), the Civil Code of
Québec or any other applicable Canadian federal, provincial or territorial statute pertaining to
the granting, perfecting, priority or ranking of security interests, liens, hypothecs on personal
property, and any successor statutes, together with any regulations thereunder, in each case as in
effect from time to time. References to sections of the PPSA shall be construed to also refer
to any successor sections.

 

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“Secured Debt Documents” shall mean, collectively, the Credit Documents, each Secured
Cash Management Agreement entered into with a Cash Management Bank and each Secured Hedging
Agreement entered into with a Hedge Bank.

“Securities Act” shall have the meaning assigned to such term in Section 12(e).

“Termination Date” shall mean the date on which all Canadian Obligations are paid in
full in cash (other than Cash Management Obligations under Secured Cash Management Agreements,
Hedging Obligations under Secured Hedging Agreements or contingent indemnification obligations not
then due and payable) and the Total Revolving Credit Commitments and all Letters of Credit are
terminated (other than Letters of Credit that have been Cash Collateralized in the manner set
forth in Section 3.7 of the Credit Agreement following the termination of the Total Revolving
Credit Commitments).

(d) Where the context requires, terms relating to the Collateral or any part thereof, when
used in relation to a Canadian Pledgor, shall refer to such Canadian Pledgor’s Collateral or the
relevant part thereof.

2. Grant of Security. As security for the prompt and complete payment when due
(whether at the stated maturity, by acceleration or otherwise) of the Canadian Obligations, each
Canadian Pledgor hereby transfers, assigns and pledges to the Canadian Collateral Agent, for the
benefit of the Secured Parties, and hereby grants to the Canadian Collateral Agent, for the benefit
of the Secured Parties, a security interest in and continuing lien on all of such Canadian
Pledgor’s right, title and interest in and to all of the following, whether now owned or anytime
hereafter acquired or existing (collectively, the “Collateral”):

(a) the Pledged Shares held by such Canadian Pledgor and the certificates, if any,
representing such Pledged Shares and any interest of such Canadian Pledgor, including all
interests documented in the entries on the books of the issuer of the Pledged Shares or any
financial intermediary pertaining to the Pledged Shares and all dividends, cash, warrants,
rights, instruments and other property or proceeds from time to time received, receivable or
otherwise distributed in respect of, or in exchange for, any or all of the Pledged Shares;
provided that the Pledged Shares under this Agreement shall not include any Excluded
Capital Stock;

(b) the Pledged Debt and the instruments evidencing the Pledged Debt owed to such
Canadian Pledgor, and all payments of principal or interest, cash, instruments and other
property or proceeds from time to time received, receivable or otherwise distributed in
respect of or in exchange for any or all of such Pledged Debt;

(c) all other property that may be delivered to and held by the Canadian Collateral
Agent pursuant to the terms of this Section 2;

 

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(d) subject to Section 8, all rights and privileges of such Canadian Pledgor with
respect to the securities and other property referred to in clauses (a), (b) and (c) above;
and

(e) to the extent not covered by clauses (a), (b), (c) and (d) above, respectively, all
proceeds of any or all of the foregoing Collateral. For purposes of this Agreement, the
term “proceeds” includes whatever is receivable or received when Collateral or proceeds are
sold, exchanged, collected or otherwise disposed of, whether such disposition is voluntary
or involuntary, and includes proceeds of any indemnity or guarantee payable to any Canadian
Pledgor or the Canadian Collateral Agent from time to time with respect to any of the
Collateral.

TO HAVE AND TO HOLD the Collateral, together with all right, title, interest, powers,
privileges and preferences pertaining or incidental thereto, unto the Canadian Collateral Agent,
for the benefit of the Secured Parties, forever; subject, however, to the terms, covenants and
conditions hereinafter set forth.

3. Security for the Canadian Obligations. This Agreement secures the full and prompt
payment when due (whether at stated maturity, by acceleration or otherwise) of, and the performance
of, all the Canadian Obligations. Without limiting the generality of the foregoing, this Agreement
secures the payment of all amounts that constitute part of the Canadian Obligations and would be
owed to the Canadian Collateral Agent or the Secured Parties under the Secured Debt Documents but
for the fact that they are unenforceable or not allowable due to the existence of a bankruptcy,
insolvency, reorganization or similar proceeding involving any Canadian Pledgor.

4. Delivery of the Collateral and Filing.

(a) Each Canadian Pledgor represents and warrants that all certificates or instruments, if
any, representing or evidencing the Collateral in existence on the date hereof have been delivered
to the Canadian Collateral Agent (or its non-fiduciary agent or designee) in suitable form for
transfer by delivery or accompanied by duly executed instruments of transfer or assignment in
blank; provided that in no event shall any certificates, instruments or transfer of stock powers be
required with respect to the pledge of any Capital Stock of any Foreign Subsidiary other than a
Canadian Subsidiary. All certificates or instruments, if any, representing or evidencing the
Collateral acquired or created after the date hereof shall be promptly (but in any event within
thirty days after acquisition or creation thereof) delivered to and held by or on behalf of the
Canadian Collateral Agent (or its non fiduciary agent or designee) pursuant hereto and shall be in
suitable form for transfer by delivery, or shall be accompanied by duly executed instruments of
transfer or assignment in blank. The Canadian Collateral Agent shall have the right, at any time
after the occurrence and during the continuation of an Event of Default and without notice to any
Canadian Pledgor (except as otherwise expressly provided herein), to transfer to or to register in
the name of the Canadian Collateral Agent or any of its nominees any or all of the Pledged Shares.
After the occurrence and during the continuance of an Event of Default, each Canadian Pledgor will
promptly give to the Canadian Collateral Agent copies of any notices or other communications
received by it with respect to Pledged Shares registered in the name of such Canadian Pledgor.
After the occurrence and during the continuance of an
Event of Default, the Canadian Collateral Agent shall have the right to exchange the
certificates representing Pledged Shares for certificates of smaller or larger denominations for
any purpose consistent with this Agreement. Each delivery of Collateral (including any
After-acquired Shares and After-acquired Debt) shall be accompanied by a schedule describing the
securities theretofore and then being pledged hereunder, which shall be attached hereto as part of
Schedule 2 and made a part hereof; provided that the failure to attach any such schedule
hereto shall not affect the validity of such pledge of such securities. Each schedule so delivered
shall supersede any prior schedules so delivered.

 

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(b) Each Canadian Pledgor hereby irrevocably authorizes the Canadian Collateral Agent at any
time and from time to time to file in any relevant jurisdiction any initial financing statements
with respect to the Collateral or any part thereof and amendments thereto and renewals thereof that
contain the information required by the PPSA for the filing of any financing statement or amendment
or renewal. Such financing statements may describe the Collateral in the same manner as described
herein or may contain an indication or description of collateral that describes such property in
any other manner such as “all assets” or “all personal property, whether now owned or hereafter
acquired” of such Canadian Pledgor or words of similar effect as being of an equal or lesser scope
or with greater detail. Each Canadian Pledgor agrees to provide such information to the Canadian
Collateral Agent promptly after any such request. Each Canadian Pledgor agrees to furnish the
Canadian Collateral Agent with written notice as required by Section 4.2 of the Canadian Security
Agreement.

5. Representations and Warranties. Each Canadian Pledgor represents and warrants to
the Canadian Collateral Agent and each other Canadian Secured Party that:

(a) Schedule 2 hereto (i) correctly represents as of the date hereof (A) the issuer,
the issuer’s jurisdiction of formation, the certificate number, if any, the Canadian Pledgor
and the record and beneficial owner, the number and class and the percentage of the issued
and outstanding Capital Stock of such class of all Pledged Shares and (B) the issuer, the
issuer’s jurisdiction, the initial principal amount, the Canadian Pledgor and holder, date
of issuance and maturity date of all Pledged Debt and (ii) together with the comparable
schedule to each supplement hereto, includes, all Capital Stock, debt securities and
promissory notes required to be pledged pursuant to Section 9.11 of the Credit Agreement and
Section 9(b) hereof. Except as set forth on Schedule 2 and except for Excluded Capital
Stock, the Pledged Shares represent all of the issued and outstanding Capital Stock of each
class of Capital Stock in the issuer on the date hereof.

(b) Such Canadian Pledgor is the legal and beneficial owner of the Collateral pledged
or assigned by such Canadian Pledgor hereunder free and clear of any Lien, except for the
Liens created by this Agreement and the Credit Documents.

(c) As of the date of this Agreement, the Pledged Shares pledged by such Canadian
Pledgor hereunder have been duly authorized and validly issued and, in the case of Pledged
Shares issued by a corporation, are fully paid and non-assessable.

 

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(d) Except for restrictions and limitations imposed by the Credit Documents or
securities laws generally and except as described in the Perfection Certificate, the
Collateral is freely transferable and assignable, and none of the Collateral is subject
to any option, right of first refusal, shareholders agreement, charter or by-law provisions
or contractual restriction of any nature that might prohibit, impair, delay or otherwise
affect the pledge of such Collateral hereunder, the sale or disposition thereof pursuant
hereto or the exercise by the Canadian Collateral Agent of rights and remedies hereunder.

(e) No consent or approval of any Governmental Authority, any securities exchange or
any other Person was or is necessary to the validity of the pledge effected hereby (other
than such as have been obtained and are in full force and effect).

(f) The execution and delivery by such Canadian Pledgor of this Agreement and the
pledge of the Collateral pledged by such Canadian Pledgor hereunder pursuant hereto create a
valid and enforceable security interest in such Collateral and (i) in the case of
certificates or instruments representing or evidencing the Collateral, upon the earlier of
(x) delivery of such Collateral and any necessary endorsements to the extent necessary to
the Canadian Collateral Agent (or its non fiduciary agent or designee) in accordance with
this Agreement and (y) the filing of financing statements naming each Canadian Pledgor as
‘debtor” and the Canadian Collateral Agent as “secured party” (in the applicable filing
offices, and (ii) in the case of all other Collateral which is capable of being perfected by
the filing of financing statements upon the filing of financing statements naming each
Canadian Pledgor as “debtor” and the Canadian Collateral Agent as “secured party” and
describing the Collateral in the applicable filing offices, shall create a perfected first
priority security interest in such Collateral, securing the payment of the Canadian
Obligations, in favor of the Canadian Collateral Agent, for the benefit of the Secured
Parties, subject to the effects of bankruptcy, insolvency, fraudulent conveyance,
reorganization and other similar laws relating to or affecting creditors’ rights generally
and general principles of equity (whether considered in a proceeding in equity or law).

(g) The pledge effected hereby is effective to vest in the Canadian Collateral Agent,
for the benefit of the Secured Parties, the rights of the Canadian Collateral Agent in the
Collateral as set forth herein.

(h) Such Canadian Pledgor has full power, authority and legal right to pledge all the
Collateral pledged by such Canadian Pledgor pursuant to this Agreement and this Agreement
constitutes a legal, valid and binding obligation of such Canadian Pledgor (in the case of
the Capital Stock of Foreign Subsidiaries, to the extent the creation of such security
interest in the Capital Stock of Foreign Subsidiaries other than a Subsidiary that is
organized under the Applicable Laws of a jurisdiction in Canada is governed by the PPSA),
enforceable in accordance with its terms, subject to the effects of bankruptcy, insolvency,
fraudulent conveyance, reorganization and other similar laws relating to or affecting
creditors’ rights generally and general principles of equity (whether considered in a
proceeding in equity or law).

(i) None of the Canadian Pledgors have any Subsidiaries as of the Closing Date and the
only partnership interests of any Canadian Pledgor as of the Closing Date are listed on
Schedule 2.

 

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(j) The Pledged Debt constitutes all of the outstanding Indebtedness for money borrowed
owed to such Canadian Pledgor as of the Closing Date and required to be pledged hereunder or
pursuant to Sections 6.2 and 9.11(a) of the Credit Agreement. Such Pledged Debt that
constitutes intercompany Indebtedness has been duly authorized, authenticated or issued and
delivered, is the legal, valid and binding obligation of the issuers thereof, is evidenced
by a Canadian Intercompany Note (which note has been delivered to the Canadian Collateral
Agent (or is non fiduciary agent or designee)) and, as of the date of this Agreement, is not
in default.

6. Certification of Limited Partnership Interests and Pledged Debt.

(a) Unless otherwise consented to by the Canadian Collateral Agent, Capital Stock required to
be pledged hereunder in any Subsidiary that is organized as a limited partnership and pledged
hereunder shall either (i) be represented by a certificate, and in the Organizational Documents of
such Subsidiary the applicable Canadian Pledgor shall cause the issuer of such interests to elect
to treat such interests as a “security” within the meaning of the STA of its jurisdiction of
organization or formation, as applicable, by including in its organizational documents language
substantially similar to the following and, accordingly, such interests shall be governed by the
STA:

“The [limited partnership] hereby irrevocably elects that all [limited partnership]
interests in the [limited partnership] shall be securities governed by the STA of
[jurisdiction of organization or formation, as applicable]. Each certificate
evidencing [limited partnership] interests in the [limited partnership] shall be
deemed to bear the following legend: “This certificate evidences an interest in
[name of [limited partnership]] and shall be a security for purposes of the STA.”
No change to this provision shall be effective until all outstanding certificates
have been surrendered for cancellation and any new certificates thereafter issued
shall not bear the foregoing legend.”

or (ii) not have elected to be treated as a “security” within the meaning of the STA and shall not
be represented by a certificate.

(b) Subject to the limitations set forth herein and in Section 9.11 of the Credit Agreement,
each Canadian Pledgor will cause any Indebtedness (i) for borrowed money (other than intercompany
Indebtedness) having an aggregate principal amount in excess of $5,000,000 (individually) owed to
it and required to be pledged and delivered pursuant to the terms hereof and the Credit Agreement
to be evidenced by a duly executed promissory note, which shall be accompanied by instruments of
transfer with respect thereto endorsed in blank, that is pledged and delivered to the Canadian
Collateral Agent (or its non fiduciary agent or designee) pursuant to the terms hereof and (ii) of
each Borrower and each of its Restricted Subsidiaries that is owing to any Canadian Pledgor to be
evidenced by the Canadian Intercompany Note, which shall be accompanied by instruments of transfer
with respect thereto endorsed in blank, that is pledged and delivered to the Canadian Collateral
Agent (or its non-fiduciary agent or designee) pursuant to the terms hereof.

 

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7. Further Assurances. Subject to any limitations set forth in the Credit Documents,
each Canadian Pledgor agrees that at any time and from time to time, at the expense of such
Canadian Pledgor, it will execute or otherwise authorize the filing of any and all further
documents, financing statements, agreements and instruments, and take all such further actions
(including the filing and recording of financing statements deeds of trust and other documents),
which may be required under any Applicable Law, or which the Canadian Collateral Agent may
reasonably request, in order (x) to perfect and protect any pledge, assignment or security interest
granted or purported to be granted hereby (including the priority thereof) or (y) to enable the
Canadian Collateral Agent to exercise and enforce its rights and remedies hereunder with respect to
any Collateral.

8. Voting Rights; Dividends and Distributions; Etc.

(a) So long as no Event of Default shall have occurred and be continuing:

(i) Each Canadian Pledgor shall be entitled to exercise any and all voting and other
consensual rights pertaining to the Collateral or any part thereof for any purpose not
prohibited by the terms of this Agreement or the other Secured Debt Documents;
provided that such voting and other rights shall not be exercised in any manner that
could materially and adversely affect the rights inuring to a holder of any Pledged Shares
or the rights and remedies of any of the Canadian Collateral Agent or the other Secured
Parties under this Agreement, the Credit Agreement or any other Credit Document or the
ability of the Secured Parties to exercise the same.

(ii) The Canadian Collateral Agent shall execute and deliver (or cause to be executed
and delivered) to each Canadian Pledgor all such proxies and other instruments as such
Canadian Pledgor may reasonably request for the purpose of enabling such Canadian Pledgor to
exercise the voting and other rights that it is entitled to exercise pursuant to paragraph
(i) above.

(b) Subject to paragraph (c) below, each Canadian Pledgor shall be entitled to receive and
retain and use, free and clear of the Lien of this Agreement, any and all dividends, distributions,
redemptions, principal and interest made or paid in respect of the Collateral to the extent not
prohibited by any Secured Debt Document; provided, however, that any and all
noncash dividends, interest, principal or other distributions that would constitute Pledged Shares
or Pledged Debt, whether resulting from a subdivision, combination or reclassification of the
outstanding Capital Stock of the issuer of any Pledged Shares or received in exchange for Pledged
Shares or Pledged Debt or any part thereof, or in redemption thereof, or as a result of any merger,
consolidation, amalgamation, acquisition or other exchange of assets to which such issuer may be a
party or otherwise, shall be, and shall be forthwith delivered to the Canadian Collateral Agent to
hold as, Collateral and shall, if received by such Canadian Pledgor, be received in trust for the
benefit of the Canadian Collateral Agent, be segregated from the other property or funds of such
Canadian Pledgor and be forthwith delivered to the Canadian Collateral Agent as Collateral in the
same form as so received (with any necessary endorsement).

 

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(c) Upon written notice to the Canadian Pledgors by the Canadian Collateral Agent following
the occurrence and during the continuation of an Event of Default:

(i) all rights of such Canadian Pledgor to exercise or refrain from exercising the
voting and other consensual rights that it would otherwise be entitled to exercise pursuant
to Section 8(a)(i) shall cease, and all such rights shall thereupon become vested in the
Canadian Collateral Agent, which shall thereupon have the sole right to exercise or refrain
from exercising such voting and other consensual rights during the continuation of such
Event of Default; provided that, unless otherwise directed by the Required Lenders,
the Canadian Collateral Agent shall have the right from time to time following the
occurrence and during the continuation of an Event of Default to permit the Canadian
Pledgors to exercise such rights. After all Events of Default have been cured or waived or
otherwise cease to be continuing and the Company has delivered to the Canadian Collateral
Agent a certificate to that effect, each Canadian Pledgor will have the right to exercise
the voting and consensual rights that such Canadian Pledgor would otherwise be entitled to
exercise pursuant to the terms of Section 8(a)(i) (and the obligations of the Canadian
Collateral Agent under Section 8(a)(ii) shall be reinstated);

(ii) all rights of such Canadian Pledgor to receive the dividends, distributions and
principal and interest payments that such Canadian Pledgor would otherwise be authorized to
receive and retain pursuant to Section 8(b) shall cease, and all such rights shall thereupon
become vested in the Canadian Collateral Agent, which shall thereupon have the sole right to
receive and hold as Collateral such dividends, distributions and principal and interest
payments during the continuation of such Event of Default. After all Events of Default have
been cured or waived or otherwise cease to be continuing and the Company has delivered to
the Canadian Collateral Agent a certificate to that effect, the Canadian Collateral Agent
shall repay to each Canadian Pledgor (without interest) and each Canadian Pledgor shall be
entitled to receive, retain and use all dividends, distributions and principal and interest
payments that such Canadian Pledgor would otherwise be permitted to receive, retain and use
pursuant to the terms of Section 8(b);

(iii) all dividends, distributions and principal and interest payments that are
received by such Canadian Pledgor contrary to the provisions of Section 8(b) shall be
received in trust for the benefit of the Canadian Collateral Agent, shall be segregated from
other property or funds of such Canadian Pledgor and shall forthwith be delivered to the
Canadian Collateral Agent as Collateral in the same form as so received (with any necessary
endorsements); and

(iv) in order to permit the Canadian Collateral Agent to receive all dividends,
distributions and principal and interest payments to which it may be entitled under Section
8(b) above, to exercise the voting and other consensual rights that it may be entitled to
exercise pursuant to Section 8(c)(i), and to receive all dividends, distributions and
principal and interest payments that it may be entitled to under Sections 8(c)(ii) and
(c)(iii), such Canadian Pledgor shall from time to time execute and deliver to the Canadian
Collateral Agent, appropriate proxies, dividend payment orders and other instruments as the
Canadian Collateral Agent may reasonably request.

 

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(d) Any notice given by the Canadian Collateral Agent to the Canadian Pledgors suspending
their rights under paragraph (c) of this Section 8 (i) may be given by telephone if promptly
confirmed in writing, (ii) may be given to one or more of the Canadian
Pledgors at the same or different times and (iii) may suspend the rights of the Canadian
Pledgors under paragraph (a)(i) or paragraph (b) of this Section 9 in part without suspending all
such rights (as specified by the Canadian Collateral Agent in its sole and absolute discretion) and
without waiving or otherwise affecting the Canadian Collateral Agent’s rights to give additional
notices from time to time suspending other rights so long as an Event of Default has occurred and
is continuing.

9. Transfers and Other Liens; Additional Collateral; Etc. Each Canadian Pledgor
shall:

(a) not (i) except as expressly permitted by the Credit Agreement (including pursuant
to waivers and consents thereunder), sell or otherwise Dispose of, or grant any option or
warrant with respect to, any of the Collateral or (ii) create or suffer to exist any
consensual Lien upon or with respect to any of the Collateral, except for the Lien created
by this Agreement and the other Security Documents; provided that in the event such
Canadian Pledgor sells or otherwise disposes of assets as permitted by the Credit Agreement
(including pursuant to waivers and consents thereunder) and such assets are or include any
of the Collateral, the Canadian Collateral Agent shall release such Collateral to such
Canadian Pledgor free and clear of the Lien created by this Agreement concurrently with the
consummation of such sale in accordance with Section 13.17 of the Credit Agreement and with
Section 14 hereof;

(b) pledge and, if applicable, cause each Domestic Subsidiary required to become a
party hereto to pledge, to the Canadian Collateral Agent for the benefit of the Secured
Parties, immediately upon acquisition thereof, all After-acquired Shares and After-acquired
Debt required to be pledged pursuant to Section 9.11(a) of the Credit Agreement, in each
case pursuant to a supplement to this Agreement substantially in the form of Annex A hereto
or such other form reasonably satisfactory to the Canadian Collateral Agent (it being
understood that the execution and delivery of such a supplement shall not require the
consent of any Canadian Pledgor hereunder and that the rights and obligations of each
Canadian Pledgor hereunder shall remain in full force and effect notwithstanding the
addition of any new Canadian Subsidiary Pledgor as a party to this Agreement); and

(c) defend its and the Canadian Collateral Agent’s title or interest in and to all the
Collateral (and in the Proceeds thereof) against any and all Liens (other than the Lien
created by this Agreement), however arising, and any and all Persons whomsoever and, subject
to Section 13.17 of the Credit Agreement and Section 14 hereof, to maintain and preserve the
Lien and security interest created by this Agreement until the Termination Date.

10. Canadian Collateral Agent Appointed Attorney-in-Fact. Each Canadian Pledgor
hereby appoints, which appointment is irrevocable and coupled with an interest, the Canadian
Collateral Agent as such Canadian Pledgor’s attorney-in-fact, with full authority in the place and
stead of such Canadian Pledgor and in the name of such Canadian Pledgor or otherwise, to take any
action and to execute any instrument, in each case after the occurrence and during the continuation
of an Event of Default, that the Canadian Collateral Agent may deem
reasonably necessary or advisable to accomplish the purposes of this Agreement, including to
receive, endorse and collect all instruments made payable to such Canadian Pledgor representing any
dividend, distribution or principal or interest payment in respect of the Collateral or any part
thereof and to give full discharge for the same.

 

-11-

 

11. The Canadian Collateral Agent’s Duties. The powers conferred on the Canadian
Collateral Agent hereunder are solely to protect its interest in the Collateral and shall not
impose any duty upon it to exercise any such powers. Except for the safe custody of any Collateral
in its possession and the accounting for moneys actually received by it hereunder, the Canadian
Collateral Agent shall have no duty as to any Collateral, as to ascertaining or taking action with
respect to calls, conversions, exchanges, maturities, tenders or other matters relative to any
Pledged Shares, whether or not the Canadian Collateral Agent or any other Canadian Secured Party
has or is deemed to have knowledge of such matters, or as to the taking of any necessary steps to
preserve rights against any parties or any other rights pertaining to any Collateral. The Canadian
Collateral Agent shall be deemed to have exercised reasonable care in the custody and preservation
of any Collateral in its possession if such Collateral is accorded treatment substantially equal to
that which the Canadian Collateral Agent accords its own property.

12. Remedies. If any Event of Default shall have occurred and be continuing:

(a) The Canadian Collateral Agent may exercise in respect of the Collateral, in
addition to other rights and remedies provided for herein or otherwise available to it, all
the rights and remedies of a secured party upon default under the PPSA, any other statute or
otherwise at law or in equity and also may without notice, except as specified below, sell
the Collateral or any part thereof in one or more parcels at public or private sale, at any
exchange broker’s board or at any of the Canadian Collateral Agent’s offices or elsewhere,
for cash, on credit or for future delivery, at such price or prices and upon such other
terms as the Canadian Collateral Agent may deem commercially reasonable irrespective of the
impact of any such sales on the market price of the Collateral. The Canadian Collateral
Agent shall be authorized at any such sale (if it deems it advisable to do so) to restrict
the prospective bidders or purchasers of Collateral to Persons who will represent and agree
that they are purchasing the Collateral for their own account for investment and not with a
view to the distribution or sale thereof, and, upon consummation of any such sale, the
Canadian Collateral Agent shall have the right to assign, transfer and deliver to the
purchaser or purchasers thereof the Collateral so sold. Each purchaser at any such sale
shall hold the property sold absolutely free from any claim or right on the part of any
Canadian Pledgor, and each Canadian Pledgor hereby waives (to the extent permitted by
Applicable Law) all rights of redemption, stay and/or appraisal that it now has or may at
any time in the future have under any rule of law or statute now existing or hereafter
enacted. The Canadian Collateral Agent or any other Canadian Secured Party shall have the
right upon any such public sale, and, to the extent permitted by Applicable Law, upon any
such private sale, to purchase all or any part of the Collateral so sold, and the Canadian
Collateral Agent or such other Canadian Secured Party may, subject to (x) the satisfaction
in full of all payments due pursuant to Section 12(b)(i) and (y) the ratable satisfaction of
the Canadian Obligations in accordance

 

-12-

 

with Section 12(b), pay the purchase price by
crediting the amount thereof against the
Canadian Obligations. Each Canadian Pledgor agrees that, to the extent notice of sale
shall be required by law, at least ten days’ notice to such Canadian Pledgor of the time and
place of any public sale or the time after which any private sale is to be made shall
constitute reasonable notification. The Canadian Collateral Agent shall not be obligated to
make any sale of Collateral regardless of notice of sale having been given. The Canadian
Collateral Agent may adjourn any public or private sale from time to time by announcement at
the time and place fixed therefor, and such sale may, without further notice, be made at the
time and place to which it was so adjourned. To the extent permitted by Applicable Law,
each Canadian Pledgor hereby waives any claim against the Canadian Collateral Agent arising
by reason of the fact that the price at which any Collateral may have been sold at such a
private sale was less than the price that might have been obtained at a public sale, even if
the Canadian Collateral Agent accepts the first offer received and does not offer such
Collateral to more than one offeree. As an alternative to exercising the power of sale
herein conferred upon it, the Canadian Collateral Agent may proceed by a suit or suits at
law or in equity to foreclose this Agreement and to sell the Collateral or any portion
thereof pursuant to a judgment or decree of a court or courts having competent jurisdiction
or pursuant to a proceeding by a court-appointed receiver.

(b) The Canadian Collateral Agent shall apply the proceeds of any collection or sale of
the Collateral at any time after receipt in accordance with the priority set forth in
Section 5.4 of the Canadian Security Agreement;

Upon any sale of the Collateral by the Canadian Collateral Agent (including pursuant to a
power of sale granted by statute or under a judicial proceeding), the receipt of the
Canadian Collateral Agent or of the officer making the sale shall be a sufficient discharge
to the purchaser or purchasers of the Collateral so sold and such purchaser or purchasers
shall not be obligated to see to the application of any part of the purchase money paid over
to the Canadian Collateral Agent or such officer or be answerable in any way for the
misapplication thereof.

(c) The Canadian Collateral Agent may exercise any and all rights and remedies of each
Canadian Pledgor in respect of the Collateral.

(d) All payments received by any Canadian Pledgor after the occurrence and during the
continuation of an Event of Default in respect of the Collateral shall be received in trust
for the benefit of the Canadian Collateral Agent, shall be segregated from other property or
funds of such Canadian Pledgor and shall be forthwith delivered to the Canadian Collateral
Agent (or its non fiduciary agent or designee) as Collateral in the same form as so received
(with any necessary endorsement).

(e) If the Canadian Collateral Agent shall determine to exercise its right to sell all
or any of the Pledged Shares pursuant to this Section 12, each Canadian Pledgor recognizes
that the Canadian Collateral Agent may be unable to effect a public sale of any or all of
the Pledged Shares, by reason of certain prohibitions contained in the Securities Act of any
applicable Canadian jurisdiction, as from time to time amended (a “Securities Act”)
or otherwise, and may be compelled to resort to one or more

 

-13-

 

private
sales thereof to a restricted group of purchasers which will be obliged to agree, among
other things, to acquire such securities for their own account for investment and not with a
view to the distribution or resale thereof. Each Canadian Pledgor acknowledges and agrees
that any such private sale may result in prices and other terms less favorable than if such
sale were a public sale and, notwithstanding such circumstances, agrees that any such
private sale shall be deemed to have been made in a commercially reasonable manner. The
Canadian Collateral Agent shall be under no obligation to delay a sale of any of the Pledged
Shares for the period of time necessary to permit the issuer thereof to register such
securities for public sale under any such Securities Act, or under other applicable laws,
even if such issuer would agree to do so.

(f) If the Canadian Collateral Agent determines to exercise its right to sell any or
all of the Collateral, upon written request, each Canadian Pledgor shall, from time to time,
furnish to the Canadian Collateral Agent all such information as the Canadian Collateral
Agent may request in order to determine the number of shares and other instruments included
in the Collateral which may be sold by the Canadian Collateral Agent as exempt transactions
under a Securities Act, as the same are from time to time in effect.

(g) The Canadian Collateral Agent may seek the appointment of a receiver,
receiver-manager or keeper (a “Receiver”) under the laws of Canada or any Province
thereof to take possession of all or any portion of the Collateral of the Canadian Pledgor
or to operate same and, to the maximum extent permitted by law, may seek the appointment of
such a receiver without the requirement of prior notice or a hearing. Any such Receiver
shall, so far as concerns responsibility for his/her acts, be deemed agent of the Canadian
Pledgor and not the Canadian Collateral Agent and the Secured Parties, and the Canadian
Collateral Agent and the Secured Parties shall not be in any way responsible for any
misconduct, negligence or non-feasance on the part of any such Receiver, his/her servants or
employees other than for gross negligence or wilful misconduct. Subject to the provisions
of the instrument appointing him/her, any such Receiver shall have power to take possession
of Collateral of the Canadian Pledgor, to preserve Collateral of the Canadian Pledgor or its
value, to carry on or concur in carrying on all or any part of the business of the Canadian
Pledgor and to sell, lease, license or otherwise dispose of or concur in selling, leasing,
licensing or otherwise disposing of Collateral of the Canadian Pledgor. To facilitate the
forgoing powers, any such Receiver may, to the exclusion of all others, including the
Canadian Pledgor, enter upon, use and occupy all premises owned or occupied by the Canadian
Pledgor wherein Collateral of the Canadian Pledgor may be situated, maintain Collateral of
the Canadian Pledgor upon such premises, borrow money on its own behalf or on behalf of the
Secured Parties on a secured or unsecured basis and use Collateral of the Canadian Pledgor
directly in carrying on the Canadian Pledgor’s business or as security for loans or advances
to enable the Receiver to carry on the Canadian Pledgor’s business or otherwise, as such
Receiver shall, in its discretion, determine. Except as may be otherwise directed by Agent,
all money received from time to time by such Receiver in carrying out his/her appointment
shall be received in trust for and paid over to Agent. Every such Receiver may, in the
discretion of the Canadian Collateral Agent, be vested with all or any of the rights and
powers of the Canadian Collateral Agent and the Secured Parties. The
Canadian Collateral Agent may, either directly or through its nominees, exercise any or
all powers and rights given to a receiver by virtue of the foregoing provisions of this
paragraph.

 

-14-

 

13. Amendments, etc. with Respect to the Canadian Obligations; Waiver of Rights.
Except for the termination of a Canadian Pledgor’s Canadian Obligations hereunder as expressly
provided in Section 14, each Canadian Pledgor shall remain obligated hereunder notwithstanding
that, without any reservation of rights against any Canadian Pledgor and without notice to or
further assent by any Canadian Pledgor, (a) any demand for payment of any of the Canadian
Obligations made by the Canadian Collateral Agent or any other Canadian Secured Party may be
rescinded by such party and any of the Canadian Obligations continued, (b) the Canadian
Obligations, or the liability of any other party upon or for any part thereof, or any collateral
security or guarantee therefor or right of offset with respect thereto, may, from time to time, in
whole or in part, be renewed, extended, amended, modified, accelerated, compromised, waived,
surrendered or released by the Canadian Collateral Agent or any other Canadian Secured Party, (c)
the Secured Debt Documents and any other documents executed and delivered in connection therewith
may be amended, modified, supplemented or terminated, in whole or in part, in accordance with the
terms of the applicable Secured Debt Document, and (d) any collateral security, guarantee or right
of offset at any time held by the Canadian Collateral Agent or any other Canadian Secured Party for
the payment of the Canadian Obligations may be sold, exchanged, waived, surrendered or released.
Neither the Canadian Collateral Agent nor any other Canadian Secured Party shall have any
obligation to protect, secure, perfect or insure any Lien at any time held by it as security for
the Canadian Obligations or for this Agreement or any property subject thereto. When making any
demand hereunder against any Canadian Pledgor, the Canadian Collateral Agent or any other Canadian
Secured Party may, but shall be under no obligation to, make a similar demand on the Canadian
Borrowers (to the extent such demand is in respect of any Canadian Obligations owing by the
Canadian Borrowers) or any other Canadian Pledgor or pledgor, and any failure by the Canadian
Collateral Agent or any other Canadian Secured Party to make any such demand or to collect any
payments from the Canadian Borrowers or any other Canadian Pledgor or pledgor or any release of the
Canadian Borrowers or any other Canadian Pledgor or pledgor shall not relieve any Canadian Pledgor
in respect of which a demand or collection is not made or any Canadian Pledgor not so released of
its several obligations or liabilities hereunder, and shall not impair or affect the rights and
remedies, express or implied, or as a matter of law, of the Canadian Collateral Agent or any other
Canadian Secured Party against any Canadian Pledgor. For the purposes hereof “demand” shall
include the commencement and continuation of any legal proceedings.

14. Continuing Security Interest; Assignments Under the Secured Debt Documents;
Release.

(a) This Agreement and the security interest granted hereunder shall remain in full force and
effect and be binding in accordance with and to the extent of its terms upon each Canadian Pledgor
and the successors and assigns thereof, and shall inure to the benefit of the Canadian Collateral
Agent and the other Secured Parties and their respective successors, indorsees, transferees and
assigns, until the Termination Date, notwithstanding that from time to
time prior to the Termination Date the Canadian Pledgors may be free from any Canadian
Obligations.

 

-15-

 

(b) A Canadian Subsidiary Pledgor shall automatically be released from its obligations
hereunder and the pledge of such Canadian Subsidiary Pledgor shall be automatically released upon
the consummation of any transaction permitted by the Credit Agreement as a result of which such
Canadian Subsidiary Pledgor ceases to be a Restricted Foreign Subsidiary of the Canadian Borrowers
or otherwise becomes an Excluded Subsidiary; provided that the Required Lenders shall have
consented to such transaction (to the extent such consent is required by the Credit Agreement) and
the terms of such consent did not provide otherwise.

(c) The obligations created hereby of any Canadian Pledgor with respect to the Collateral
shall be automatically released and such Collateral sold free and clear of the Lien and security
interests created hereby upon any Disposition by such Canadian Pledgor of any Collateral that is
(i) permitted under the Credit Agreement (other than to the Company or any Canadian Subsidiary
Pledgor) or, (ii) upon the effectiveness of any written consent to the release of the security
interests granted hereby in any Collateral pursuant to Section 13.1 of the Credit Agreement.

(d) In connection with any termination or release pursuant to paragraph (a), (b) or (c), the
Canadian Collateral Agent shall execute and deliver to any Canadian Pledgor or authorize the filing
of, at such Canadian Pledgor’s expense, all documents that such Canadian Pledgor shall reasonably
request to evidence such termination or release provided, however, that with respect to the release
of any item of Collateral pursuant to Section 14(c)(i) in connection with any request of evidence
of termination or release made of the Canadian Collateral Agent, the Canadian Collateral Agent may
request that Canadian US Pledgor deliver a certificate of an Authorized Officer to the effect that
the sale or transfer transaction is in compliance with the Credit Documents. Any execution and
delivery of documents pursuant to this Section 14 shall be without recourse to or warranty by the
Canadian Collateral Agent.

15. Reinstatement. This Agreement shall continue to be effective, or be reinstated,
as the case may be, if at any time payment, or any part thereof, of any of the Canadian Obligations
is rescinded or must otherwise be restored or returned by the Canadian Collateral Agent or any
other Canadian Secured Party upon the insolvency, bankruptcy, dissolution, liquidation or
reorganization of either Canadian Borrower or any other Canadian Pledgor, or upon or as a result of
the appointment of a receiver, intervenor receiver and manager, or conservator of, or trustee or
similar officer for, the Canadian Borrowers or any other Canadian Pledgor or any substantial part
of its property, or otherwise, all as though such payments had not been made.

16. Notices. All notices, requests and demands pursuant hereto shall be made in
accordance with Section 13.2 of the Credit Agreement. All communications and notices hereunder to
any Canadian Subsidiary Pledgor shall be given to it in care of the Company at the Company’s
address set forth in Section 13.2 of the Credit Agreement.

17. Counterparts. This Agreement may be executed by one or more of the parties to
this Agreement on any number of separate counterparts (including by facsimile or
other electronic transmission (i.e., a “pdf” or “tif” file)), and all of said counterparts
taken together shall be deemed to constitute one and the same instrument. A set of the copies of
this Agreement signed by all the parties shall be lodged with the Canadian Collateral Agent and the
Company.

 

-16-

 

18. Severability. Any provision of this Agreement that 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. The parties hereto shall endeavor in good-faith
negotiations to replace the invalid, illegal or unenforceable provisions with valid provisions the
economic effect of which comes as close as possible to that of the invalid, illegal or
unenforceable provisions.

19. Integration. This Agreement represents the agreement of each of the Canadian
Pledgors with respect to the subject matter hereof and there are no promises, undertakings,
representations or warranties by the Canadian Collateral Agent or any other Canadian Secured Party
relative to the subject matter hereof not expressly set forth or referred to herein or in the other
Secured Debt Documents.

20. Amendments in Writing; No Waiver; Cumulative Remedies.

(a) None of the terms or provisions of this Agreement may be waived, amended, supplemented or
otherwise modified except by a written instrument executed by the affected Canadian Pledgor(s) and
the Canadian Collateral Agent in accordance with Section 13.1 of the Credit Agreement.

(b) Neither the Canadian Collateral Agent nor any other Canadian Secured Party shall by any
act (except by a written instrument pursuant to Section 20(a) hereof), delay, indulgence, omission
or otherwise be deemed to have waived any right or remedy hereunder or to have acquiesced in any
Default or Event of Default or in any breach of any of the terms and conditions hereof. No failure
to exercise, nor any delay in exercising, on the part of the Canadian Collateral Agent or any other
Canadian Secured Party, any right, power or privilege hereunder shall operate as a waiver thereof.
No single or partial exercise of any right, power or privilege hereunder shall preclude any other
or further exercise thereof or the exercise of any other right, power or privilege. A waiver by
the Canadian Collateral Agent or any other Canadian Secured Party of any right or remedy hereunder
on any one occasion shall not be construed as a bar to any right or remedy that the Canadian
Collateral Agent or such other Canadian Secured Party would otherwise have on any future occasion.

(c) The rights, remedies, powers and privileges herein provided are cumulative, may be
exercised singly or concurrently and are not exclusive of any other rights or remedies provided by
law.

21. Section Headings. The Section headings used in this Agreement are for convenience
of reference only and are not to affect the construction hereof or be taken into consideration in
the interpretation hereof.

 

-17-

 

22. Successors and Assigns. The provisions of this Agreement shall be binding upon
and inure to the benefit of the parties hereto and their respective successors and assigns, except
that no Canadian Pledgor may assign, transfer or delegate any of its rights or obligations under
this Agreement without the prior written consent of the Canadian Collateral Agent, except pursuant
to a transaction expressly permitted by the Credit Agreement.

23. WAIVER OF JURY TRIAL. EACH PARTY HERETO HEREBY IRREVOCABLY AND UNCONDITIONALLY
WAIVES TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING RELATING TO THIS AGREEMENT, ANY OTHER CREDIT
DOCUMENT AND FOR ANY COUNTERCLAIM THEREIN.

24. Submission to Jurisdiction; Waivers. Each of the Canadian Pledgors hereby
irrevocably and unconditionally:

(a) submits for itself and its property in any legal action or proceeding relating to
this Agreement, and the other Credit Documents to which it is a party, or for recognition
and enforcement of any judgment in respect thereof, to the non-exclusive jurisdiction of a
court of competent jurisdiction in the Province of Ontario;

(b) consents that any such action or proceeding may be brought in such courts and
waives any objection that it may now or hereafter have to the venue of any such action or
proceeding in any such court or that such action or proceeding was brought in an
inconvenient court and agrees not to plead or claim the same;

(c) agrees that service of process in any such action or proceeding may be effected by
mailing a copy thereof by registered or certified mail (or any substantially similar form of
mail), postage prepaid, to such Canadian Pledgor at its address referred to in Section 16 or
at such other address of which the Canadian Collateral Agent shall have been notified
pursuant thereto;

(d) agrees that nothing herein shall affect the right of the Canadian Collateral Agent
or any other Canadian Secured Party to effect service of process in any other manner
permitted by law or shall limit the right of the Canadian Collateral Agent or any other
Canadian Secured Party to sue in any other jurisdiction; and

(e) waives, to the maximum extent not prohibited by law, any right it may have to claim
or recover in any legal action or proceeding referred to in this Section 24 any special,
exemplary, punitive or consequential damages.

25. GOVERNING LAW. THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES
HEREUNDER SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAWS OF THE
PROVINCE OF ONTARIO AND THE FEDERAL LAWS OF CANADA APPLICABLE THEREIN.

[Remainder of page intentionally left blank]

 

-18-

 

IN WITNESS WHEREOF, each of the undersigned has caused this Agreement to be duly executed and
delivered by its duly authorized officer as of the day and year first above written.

	 	 	 	 	 
	 	ASSOCIATED MATERIALS CANADA 

LIMITED, as a Canadian Pledgor

 	 
	 	By:  	/s/ David S. Brown
 	 
	 	 	Name:  	David S. Brown 	 
	 	 	Title:  	President, Secretary 	 
	 
	 	GENTEK CANADA HOLDINGS LIMITED, as 

a Canadian Pledgor

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

[Canadian Pledge Agreement]

 

 

 

IN WITNESS WHEREOF, each of the undersigned has caused this Agreement to be duly executed and
delivered by its duly authorized officer as of the day and year first above written.

	 	 	 	 	 
	 	ASSOCIATED MATERIALS CANADA 

LIMITED, as a Canadian Pledgor

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	GENTEK CANADA HOLDINGS LIMITED, as 

a Canadian Pledgor

 	 
	 	By:  	/s/ Vicki Hardman
 	 
	 	 	Name:  	VICKI HARDMAN 	 
	 	 	Title:  	VICE PRESIDENT 	 

[Canadian Pledge Agreement]

 

 

 

	 	 	 	 	 
	 	GENTEK BUILDING PRODUCTS LIMITED 

PARTNERSHIP, by its general partner 

GENTEK CANADA HOLDINGS LIMITED, as a

Canadian Pledgor

 	 
	 	By:  	/s/ Vicki Hardman
 	 
	 	 	Name:  	VICKI HARDMAN 	 
	 	 	Title:  	VICE PRESIDENT 	 

[Canadian Pledge Agreement]

 

 

 

	 	 	 	 	 
	 	UBS AG CANADA BRANCH,

as Canadian Collateral Agent

 	 
	 	By:  	/s/ Mary E. Evans
 	 
	 	 	Name:  	Mary E. Evans 	 
	 	 	Title:  	Associate Director Banking Products
Services. US 	 
	 
	 	By:  	              /s/ Irja R. Otsa
 	 
	 	 	Name:  	Irja R. Otsa 	 
	 	 	Title:  	Associate Director Banking Products
Services. US 	 

[Canadian Pledge Agreement]

 

 

 

SCHEDULE 1

TO THE CANADIAN

PLEDGE AGREEMENT

CANADIAN SUBSIDIARY PLEDGORS

 

 

 

SCHEDULE 2

TO THE CANADIAN

PLEDGE AGREEMENT

PLEDGED SHARES AND PLEDGED DEBT

Pledged Shares1

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	Issuer’s	 	Class of	 	Certificate	 	 	 	 	 	 	Percentage of	 
	 	 	 	 	jurisdiction	 	Equity	 	No(s), if	 	 	Number of	 	 	Issued and	 
	Pledgor	 	Issuer	 	of formation	 	Interest	 	any	 	 	Units	 	 	Outstanding Units	 
	Gentek Canada 

Holdings Limited

	 	Gentek Building

Products Limited

Partnership
	 	Ontario
	 	Partnership Unit
	 	 	1	 	 	 	1	 	 	 	0.1	%
	Associated 

Materials Canada 

Limited

	 	Gentek Building

Products Limited

Partnership
	 	Ontario
	 	Partnership Unit
	 	 	2	 	 	 	1	 	 	 	0.1	%
	Associated 

Materials Canada 

Limited

	 	Gentek Building

Products Limited

Partnership
	 	Ontario
	 	Partnership Unit
	 	 	3	 	 	 	998	 	 	 	99.8	%

Pledged Debt

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	Issuer’s	 	Initial	 	 	 	 	 
	 	 	 	 	jurisdiction	 	Principle	 	 	Date of	 	Maturity
	Pledgor	 	Issuer	 	of formation	 	Amount	 	 	Issuance	 	Date
	Gentek Building 

Products Limited 

Partnership

	 	Gentek Building
Products, Inc.
	 	Delaware
	 	$	44,500,000	 	 	October 13, 2010
	 	Termination Date

 

	 	 	 
	1	 	The Pledged Shares of the Canadian Pledgors included in
this Schedule 2 represent unit certificates outstanding as of the date hereof.
However, immediately after the Closing (as defined in the Credit Agreement)
these outstanding unit certificates will be cancelled (on account of being
lost) and subsequently reissued with replacement share certificates within the
time period required by Schedule 9.17 to the Credit Agreement.

 

 

 

ANNEX A

TO THE

CANADIAN PLEDGE AGREEMENT

SUPPLEMENT NO. [_____], dated as of
[                                        ] (this “Supplement), to the Canadian Pledge
Agreement dated as of October 13, 2010 (the “Canadian Pledge Agreement”), by ASSOCIATED
MATERIALS CANADA LIMITED (“Associated”), an Ontario Corporation, GENTEK CANADA HOLDINGS
LIMITED (“Gentek”), an Ontario Corporation and GENTEK BUILDING PRODUCTS LIMITED
PARTNERSHIP, an Ontario limited partnership, by its general partner, Gentek (“LP”), each of
the subsidiaries listed on Schedule 1 thereto (each such subsidiary, individually, a “Canadian
Subsidiary Pledgor” and, collectively the “Canadian Subsidiary Pledgors”; and, together
with Associated, Gentek and LP, the “Canadian Pledgors”), and UBS AG CANADA BRANCH, as
Canadian Collateral Agent for the Secured Parties (as defined below) (in such capacity, together
with its successors in such capacity, the “Canadian Collateral Agent”).

A. Reference is made to (a) Revolving Credit Agreement, dated as of October 13, 2010 (the
“Credit Agreement”), among CAREY INTERMEDIATE HOLDINGS CORP., a Delaware corporation, the
US Borrowers, the Canadian Borrowers, the bank, financial institutions and other institutional
lenders and investors (each individually a “Lender” and, collectively, the
“Lenders”), UBS AG, STAMFORD BRANCH, as US Administrative Agent, US Collateral Agent, and
a US Letter of Credit Issuer and a Canadian Letter of Credit Issuer, UBS AG CANADA BRANCH, as
Canadian Administrative Agent and Canadian Collateral Agent, WELLS FARGO CAPITAL FINANCE, LLC, as
Co-Collateral Agent, DEUTSCHE BANK AG NEW YORK BRANCH, as a US Letter of Credit Issuer, DEUTSCHE
BANK AG CANADA BRANCH, as a Canadian Letter of Credit Issuer, WELLS FARGO BANK, NATIONAL
ASSOCIATION as a US Letter of Credit Issuer and a Canadian Letter of Credit Issuer and UBS LOAN
FINANCE LLC, as Swingline Lender, and (b) the Canadian Guarantee, dated as of October 13, 2010 (the
“Canadian Guarantee”), among the Canadian guarantors party thereto and the Canadian
Collateral Agent.

B. Capitalized terms used herein and not otherwise defined herein (including in the preamble
and the recitals hereto) shall have the meanings assigned to such terms in the Canadian Pledge
Agreement. The rules of construction and the interpretive provisions specified in Section 1(b) of
the Canadian Pledge Agreement shall apply to this Supplement, including terms defined in the
preamble and recitals hereto.

C. The Canadian Pledgors have entered into the Canadian Pledge Agreement in order to induce
the Agents and the Canadian Lenders and the Canadian Letter of Credit Issuers to enter into the
Credit Agreement and to (a) induce the Canadian Lenders and the Canadian Letter of Credit Issuers
to make their respective Extensions of Credit to the Canadian Borrowers under the Credit Agreement,
(b) induce one or more Cash Management Banks to provide Cash Management Services pursuant to
Secured Cash Management Agreements to any Credit Party or a Restricted Subsidiary and (c) to induce
one or more Hedge Banks to enter into Secured Hedging Agreements with each Credit Party or a
Restricted Subsidiary.

 

 A-1

 

D. The undersigned Canadian Pledgor (each, an “Additional Canadian Pledgor”) is (a)
the legal and beneficial owner of the Capital Stock described under Schedule 1
hereto and issued by the entities named therein (such pledged Capital Stock, together with all
other Capital Stock required to be pledged under the Pledge Agreement (the “After-acquired
Additional Pledged Shares”), referred to collectively herein as the “Additional Pledged
Shares”) and (b) the legal and beneficial owner of the promissory notes and instruments
evidencing Indebtedness owed to it (the “Additional Pledged Debt”) described under Schedule
1 hereto.

E. Section 9.11(a) of the Credit Agreement and Section 9(b) of the Canadian Pledge Agreement
provides that additional Subsidiaries of the [Company] Canadian Borrower may become Canadian
Subsidiary Pledgors under the Canadian Pledge Agreement by execution and delivery of an instrument
in the form of this Supplement. Each undersigned Additional Canadian Pledgor is executing this
Supplement in accordance with the requirements of Section 9(b) of the Canadian Pledge Agreement to
pledge to the Canadian Collateral Agent, for the benefit of the Secured Parties, the Additional
Pledged Shares and the Additional Pledged Debt [and to become a Canadian Subsidiary Pledgor under
the Canadian Pledge Agreement] in order to induce the Canadian Lenders and the [Canadian] Letter of
Credit Issuers to make additional extensions of credit to the Borrowers under the Credit Agreement,
to induce one or more Cash Management Banks to provide Cash Management Services pursuant to Secured
Cash Management Agreements to any Credit Party and to induce one or more Hedge Banks to enter into
Secured Hedging Agreements with any Credit Party and as consideration for extensions of credit
previously made, Cash Management Services previously provided, and Secured Hedging Agreements
previously entered into.

Accordingly, the Canadian Collateral Agent and each undersigned Additional Canadian Pledgor
agree as follows:

SECTION 1. In accordance with Section 9(b) of the Canadian Pledge Agreement, each Additional
Canadian Pledgor by its signature below hereby transfers, assigns and pledges to the Canadian
Collateral Agent, for the benefit of the Secured Parties, and hereby grants to the Canadian
Collateral Agent, for the benefit of the Secured Parties, a security interest in and to all of such
Additional Canadian Pledgor’s right, title and interest in the following, whether now owned or
anytime hereafter acquired or existing (collectively, the “Additional Collateral”):

(a) the Additional Pledged Shares held by such Additional Canadian Pledgor and the
certificates, if any, representing such Additional Pledged Shares and any interest of such
Additional Canadian Pledgor, including all interests documented in the entries on the books
of the issuer of the Additional Pledged Shares or any financial intermediary pertaining to
the Additional Pledged Shares and all dividends, cash, warrants, rights, instruments and
other property or proceeds from time to time received, receivable or otherwise distributed
in respect of or in exchange for any or all of the Additional Pledged Shares;
provided that the Additional Pledged Shares under this Supplement shall not include
any Excluded Capital Stock;

(b) the Additional Pledged Debt and the instruments evidencing the Additional Pledged
Debt owed to such Additional Canadian Pledgor, and all payments of principal or interest,
cash, instruments and other property or proceeds from time to time received, receivable or
otherwise distributed in respect of or in exchange for any or all of such Additional Pledged
Debt;

 

 A-2

 

(c) all other property that may be delivered to and held by the Canadian Collateral
Agent pursuant to the terms of this Section 1;

(d) subject to Section 8 of the Canadian Pledge Agreement, all rights and privileges of
such Canadian Pledgor with respect to the securities and other property referred to in
clauses (a), (b) and (c) above; and

(e) to the extent not covered by clauses (a), (b), (c) and (d) above, respectively,
all proceeds of any or all of the foregoing Additional Collateral. For purposes of this
Supplement, the term “proceeds” includes whatever is receivable or received when Additional
Collateral or proceeds are sold, exchanged, collected or otherwise disposed of, whether such
disposition is voluntary or involuntary, and includes proceeds of any indemnity or guarantee
payable to any Additional Canadian Pledgor or the Canadian Collateral Agent from time to
time with respect to any of the Additional Collateral.

TO HAVE AND TO HOLD the Additional Collateral, together with all right, title, interest,
powers, privileges and preferences pertaining or incidental thereto, unto the Canadian Collateral
Agent, for the benefit of the Secured Parties, forever; subject, however, to the terms, covenants
and conditions hereinafter set forth.

For purposes of the Canadian Pledge Agreement, (x) the Collateral shall be deemed to include
the Additional Collateral and (y) the After-acquired Pledged Shares shall be deemed to include the
Additional After-acquired Pledge Shares.

[SECTION 2. Each Additional Canadian Pledgor by its signature below becomes a Canadian
Pledgor under the Canadian Pledge Agreement with the same force and effect as if originally named
therein as a Canadian Pledgor and each Additional Canadian Pledgor hereby agrees to all the terms
and provisions of the Canadian Pledge Agreement applicable to it as a Canadian Pledgor thereunder.
Each reference to a “Canadian Subsidiary Pledgor” or a “Canadian Pledgor” in the Canadian Pledge
Agreement shall be deemed to include each Additional Canadian Pledgor. The Canadian Pledge
Agreement is hereby incorporated herein by reference.] 2

SECTION [2][3]. Each Additional Canadian Pledgor represents and warrants as follows:

(a) Schedule 1 hereto (i) correctly represents as of the date hereof (A) the issuer,
the certificate number, if any, the Additional Canadian Pledgor and the record and
beneficial owner, the number and class and the percentage of the issued and outstanding
Capital Stock of such class of all Additional Pledged Shares and (B) the issuer, the initial
principal amount, the Additional Canadian Pledgor and holder, date of issuance and
maturity date of all Additional Pledged Debt and (ii) together with Schedule 2 to the
Canadian Pledge Agreement and the comparable schedules to each other Supplement to the
Canadian Pledge Agreement, includes all Capital Stock, debt securities and promissory notes
required to be pledged pursuant to Section 9.11 of the Credit Agreement and Section 9(b) of
the Canadian Pledge Agreement. Except as set forth on Schedule 1 and except for Excluded
Capital Stock, the Additional Pledged Shares represent all of the issued and outstanding
Capital Stock of each class of Capital Stock in the issuer on the date hereof.

 

	 	 	 
	2	 	Include only for Additional Pledgors that are not
already signatories to the Canadian Pledge Agreement.

 

 A-3

 

(b) Such Additional Canadian Pledgor is the legal and beneficial owner of the
Additional Collateral pledged or assigned by such Additional Canadian Pledgor hereunder free
and clear of any Lien, except for the Liens created by this Supplement to the Canadian
Pledge Agreement and Liens created by the Canadian Pledge Agreement.

(c) As of the date of this Supplement, the Additional Pledged Shares pledged by such
Additional Canadian Pledgor hereunder have been duly authorized and validly issued and, in
the case of Additional Pledged Shares issued by a corporation, are fully paid and
non-assessable.

(d) Except for restrictions and limitations imposed by the Credit Documents or
securities laws generally, and except as disclosed on Schedule 1, the Additional Collateral
is freely transferable and assignable, and none of the Additional Collateral is subject to
any option, right of first refusal, shareholders agreement, charter or by-law provisions or
contractual restriction of any nature that might prohibit, impair, delay or otherwise affect
the pledge of such Additional Collateral hereunder, the sale or disposition thereof pursuant
hereto or the exercise by the Canadian Collateral Agent of rights and remedies hereunder.

(e) No consent or approval of any Governmental Authority, any securities exchange or
any other Person was or is necessary to the validity of the pledge effected hereby (other
than such as have been obtained and are in full force and effect).

(f) The execution and delivery by such Additional Canadian Pledgor of this Supplement
and the pledge of the Additional Collateral pledged by such Additional Canadian Pledgor
hereunder pursuant hereto create a valid and enforceable security interest in such
Collateral (in the case of the Capital Stock of Foreign Subsidiaries other than a Subsidiary
that is organized under the Applicable Laws of a jurisdiction in Canada, to the extent the
creation of such security interest in the Capital Stock of Foreign Subsidiaries is governed
by the PPSA) and (i) in the case of certificates or instruments representing or evidencing
the Additional Collateral, upon the earlier of (x) delivery of such Additional Collateral
and any necessary endorsements to the extent necessary to the Canadian Collateral Agent (or
its non-fiduciary agent or designee) in accordance with this Supplement and the Canadian
Pledge Agreement and (y) the filing of financing statements naming each Additional US
Pledgor as “debtor” and the Canadian Collateral Agent as “secured party” and describing the
Additional Collateral in the applicable filing offices, and (ii) in the case of all other
Additional Collateral which is capable of being perfected by the filing of financing
statements, upon the

 

 A-4

 

filing of financing statements
naming each Canadian Pledgor as “debtor” and the Canadian Collateral Agent as “secured
party” and describing the Additional Collateral in the applicable filing offices, shall
create a perfected security interest in such Additional Collateral (in the case of the
Capital Stock of Foreign Subsidiaries other than a Subsidiary that is organized under the
Applicable Laws of a jurisdiction in Canada is governed by the PPSA, to the extent the
creation of such security interest in the Capital Stock of Foreign Subsidiaries other than a
Subsidiary that is organized under the Applicable Laws of a jurisdiction in Canada is
governed by the PPSA), securing the payment of the Canadian Obligations, in favor of the
Canadian Collateral Agent, for the benefit of the Secured Parties, subject to the effects of
bankruptcy, insolvency, fraudulent conveyance, reorganization and other similar laws
relating to or affecting creditors rights generally and general principles of equity
(whether considered in a proceeding in equity or law).

(g) The pledge effected hereby is effective to vest in the Canadian Collateral Agent,
for the benefit of the Secured Parties, the rights of the Canadian Collateral Agent in the
Additional Collateral as set forth herein.

(h) Such Additional Canadian Pledgor has full power, authority and legal right to
pledge all the Additional Collateral pledged by such Additional Canadian Pledgor pursuant to
this Supplement and this Supplement constitutes a legal, valid and binding obligation of
each Additional Canadian Pledgor (in the case of the Capital Stock of Foreign Subsidiaries
other than a Subsidiary that is organized under the Applicable Laws of a jurisdiction in
Canada, to the extent the creation of such security interest in the Capital Stock of Foreign
Subsidiaries is governed by the PPSA or STA), enforceable in accordance with its terms,
subject to the effects of bankruptcy, insolvency, fraudulent conveyance, reorganization and
other similar laws relating to or affecting creditors rights generally and general
principles of equity (whether considered in a proceeding in equity or law).

SECTION [3][4]. This Supplement may be executed by one or more of the parties to this
Supplement on any number of separate counterparts (including by facsimile or other electronic
transmission (i.e., a “pdf” or “tif”)), and all of said counterparts taken together shall be deemed
to constitute one and the same instrument. A set of the copies of this Supplement signed by all
the parties shall be lodged with the Canadian Collateral Agent and the Company. This Supplement
shall become effective as to each Additional Canadian Pledgor when the Canadian Collateral Agent
shall have received counterparts of this Supplement that, when taken together, bear the signatures
of such Additional Canadian Pledgor and the Canadian Collateral Agent.

SECTION [4][5]. Except as expressly supplemented hereby, the Canadian Pledge Agreement shall
remain in full force and effect.

SECTION [5][6]. THIS SUPPLEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER
SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAWS OF THE PROVINCE OF
ONTARIO AND THE FEDERAL LAWS OF CANADA APPLICABLE THEREIN.

 

 A-5

 

SECTION [6][7]. Any provision of this Supplement that 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 in the Canadian Pledge
Agreement, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or
render unenforceable such provision in any other jurisdiction. The parties hereto shall endeavor
in good-faith negotiations to replace the invalid, illegal or unenforceable provisions with valid
provisions the economic effect of which comes as close as possible to that of the invalid, illegal
or unenforceable provisions.

SECTION [7][8]. All notices, requests and demands pursuant hereto shall be made in accordance
with Section 16 of the Canadian Pledge Agreement. All communications and notices hereunder to each
Additional Canadian Pledgor shall be given to it in care of the Company at the Company’s address
set forth in Section 13.2 of the Credit Agreement.

SECTION [8][9]. Subject to Section 13.5 of the Credit Agreement, each Additional Canadian
Pledgor agrees to reimburse the Canadian Collateral Agent for its reasonable and documented
out-of-pocket expenses in connection with this Supplement, including the reasonable and documented
fees, other charges and disbursements of counsel for the Canadian Collateral Agent.

 

 A-6

 

IN WITNESS WHEREOF, each Additional Pledgor and the Canadian Collateral Agent have duly
executed this Supplement to the Canadian Pledge Agreement as of the day and year first above
written.

	 	 	 	 	 
	 	[NAME OF ADDITIONAL CANADIAN PLEDGOR(S)],

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	UBS AG CANADIAN BRANCH,

as Canadian Collateral Agent,

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

 

 A-7

 

SCHEDULE 1

TO SUPPLEMENT NO. [__]

TO THE

CANADIAN PLEDGE AGREEMENT

PLEDGED SHARES AND PLEDGED DEBT

Pledged Shares

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	Issuer’s	 	 	 	 	 	 	 	Percentage of
	 	 	 	 	jurisdiction	 	 	 	 	 	 	 	Issued and
	 	 	 	 	of	 	Class of Equity	 	Certificate	 	Number of	 	Outstanding
	Pledgor	 	Issuer	 	formation	 	Interest	 	No(s), if any	 	Units	 	Units
	 

	 	 
	 	 
	 	 
	 	 
	 	 
	 	 

Pledged Debt

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	Issuer’s	 	 	 	 	 	 
	 	 	 	 	jurisdiction of	 	Initial	 	 	 	 
	Pledgor	 	Issuer	 	formation	 	Principal Amount	 	Date of Issuance	 	Maturity DateExhibit 10.7

Exhibit 10.7

EXECUTION COPY

CANADIAN PLEDGE AGREEMENT

CANADIAN PLEDGE AGREEMENT, dated as of October 13, 2010 (this “Agreement”), among
GENTEK BUILDING PRODUCTS, INC., a Delaware company (the “Pledgor”), and UBS AG, STAMFORD
BRANCH, as US collateral agent for the Secured Parties (as defined below) (in such capacity,
together with its successors in such capacity, the “US Collateral Agent”).

W I T N E S S E T H:

WHEREAS, Holdings and the Borrowers have entered into a Revolving Credit Agreement, dated as
of October 13, 2010 (the “Credit Agreement”), with the banks, financial institutions and
other institutional lenders and investors from time to time parties thereto (each individually a
“Lender” and collectively, the “Lenders”), UBS AG, STAMFORD BRANCH, as US
Administrative Agent, US Collateral Agent, and a Letter of Credit Issuer, UBS AG, CANADA BRANCH, as
Canadian Administrative Agent and Canadian Collateral Agent, WELLS FARGO CAPITAL FINANCE, LLC, as
Co-Collateral Agent and a Letter of Credit Issuer, DEUTSCHE BANK AG NEW YORK BRANCH, as a Letter of
Credit Issuer, DEUTSCHE BANK AG CANADA BRANCH, as a Letter of Credit Issuer and UBS LOAN FINANCE
LLC, as Swingline Lender, pursuant to which the Lenders have severally agreed to make loans to the
Borrowers and the Letter of Credit Issuers have agreed to issue letters of credit for the account
of the Borrowers upon the terms and subject to the conditions set forth therein, (2) one or more
Cash Management Banks may from time to time provide Cash Management Services pursuant to Secured
Cash Management Agreements to any Credit Party and (3) one or more Hedge Banks may from time to
time enter into Secured Hedging Agreements with any Credit Party (clauses (1), (2) and (3)
collectively, the “Extensions of Credit”);

WHEREAS, pursuant to the US Guarantee, dated as of October 13, 2010 (the “US
Guarantee”), the Pledgor and the other guarantor parties thereto (other than in respect of
their own obligations) have agreed to guarantee to the US Collateral Agent, for the benefit of the
Secured Parties, the prompt and complete payment and performance when due (whether at the stated
maturity, by acceleration or otherwise) of the Obligations;

WHEREAS, pursuant to the Canadian Guarantee, dated as of October 13, 2010 (the “Canadian
Guarantee”), each of the Canadian Borrowers (other than in respect of their own obligations)
and their subsidiaries party thereto have agreed to guarantee to the Canadian Collateral Agent, for
the benefit of the Secured Parties, the prompt and complete payment and performance when due
(whether at the stated maturity, by acceleration or otherwise) of the Canadian Obligations;

WHEREAS, the Pledgor acknowledges that it will derive substantial direct and indirect benefit
from the making of the Extensions of Credit and has agreed to secure its obligations with respect
thereto pursuant to this Agreement;

WHEREAS, it is a condition precedent to the obligations of the Lenders and the Letter of
Credit Issuers to make their respective Extensions of Credit to the Borrowers under the
Credit Agreement that the Pledgor shall have executed and delivered this Agreement to the US
Collateral Agent for the benefit of the Secured Parties; and

 

 

 

WHEREAS, the Pledgor is the legal and beneficial owner of the Capital Stock described in
Schedule 2 and issued by the entities named therein (such Capital Stock is collectively referred to
herein as the “Pledged Shares”).

NOW, THEREFORE, in consideration of the premises and for other good and valuable
consideration, the receipt and adequacy of which are hereby acknowledged, and to induce the Agents,
the Lenders and the Letter of Credit Issuers to enter into the Credit Agreement and to induce the
Lenders and the Letter of Credit Issuers to make their respective Extensions of Credit to the
Borrowers under the Credit Agreement, to induce one or more Cash Management Banks to provide Cash
Management Services pursuant to Secured Cash Management Agreements to any Credit Party and to
induce one or more Hedge Banks to enter into Secured Hedging Agreements with each Credit Party, the
Pledgor hereby agrees with the US Collateral Agent, for the benefit of the Secured Parties, as
follows:

1. Defined Terms.

(a) Unless otherwise defined herein, terms defined in the Credit Agreement and used herein
(including terms used in the preamble and the recitals) shall have the meanings given to them in
the Credit Agreement and all terms defined in the PPSA from time to time in effect or in the
Securities Transfer Act (Ontario) from time to time in effect (together with any regulations
thereunder, the “STA”) and not defined herein or in the Credit Agreement shall have the meanings
specified therein. References to sections of the PPSA or the STA shall be construed to also refer
to any successor sections.

(b) The rules of construction and other interpretive provisions specified in Sections 1.2,
1.5, 1.6 and 1.7 of the Credit Agreement shall apply to this Agreement, including terms defined in
the preamble and recitals hereto.

(c) The following terms shall have the following meanings:

“Agreement” shall have the meaning assigned to such term in the preamble hereto.

“Canadian Guarantee” shall have the meaning assigned to such term in the recitals
hereto.

“Collateral” shall have the meaning assigned to such term in Section 2 hereto.

“Company” shall have the meaning assigned to such term in the preamble hereto.

“Credit Agreement” shall have the meaning assigned to such term in the recitals
hereto.

“Extensions of Credit” shall have the meaning assigned to such term in the recitals
hereto.

 

-2-

 

“Holdings” shall have the meaning assigned to such term in the preamble hereto.

“Lenders” shall have the meaning assigned to such term in the recitals hereto.

“Pledged Shares” shall have the meaning assigned to such term in the recitals hereto.

“Pledgor” shall have the meaning assigned to such term in the preamble hereto.

“PPSA” shall mean the Personal Property Security Act (Ontario), the Civil Code of
Québec or any other applicable Canadian federal, provincial or territorial statute pertaining to
the granting, perfecting, priority or ranking of security interests, liens, hypothecs on personal
property, and any successor statutes, together with any regulations thereunder, in each case as in
effect from time to time. References to sections of the PPSA shall be construed to also refer to
any successor sections.

“Secured Debt Documents” shall mean, collectively, the Credit Documents, each Secured
Cash Management Agreement entered into with a Cash Management Bank and each Secured Hedging
Agreement entered into with a Hedge Bank.

“Securities Act” shall have the meaning assigned to such term in Section 12(e).

“Termination Date” shall mean the date on which all Obligations are paid in full in
cash (other than Cash Management Obligations under Secured Cash Management Agreements, Hedging
Obligations under Secured Hedging Agreements or contingent indemnification obligations not then due
and payable) and the Total Revolving Credit Commitments and all Letters of Credit are terminated
(other than Letters of Credit that have been Cash Collateralized in the manner set forth in Section
3.7 of the Credit Agreement following the termination of the Total Revolving Credit Commitments).

“US Collateral Agent” shall have the meaning assigned to such term in the preamble
hereto.

“US Guarantee” shall have the meaning assigned to such term in the recitals hereto.

(d) Where the context requires, terms relating to the Collateral or any part thereof, when
used in relation to the Pledgor, shall refer to the Pledgor’s Collateral or the relevant part
thereof.

 

-3-

 

2. Grant of Security. As security for the prompt and complete payment when due
(whether at the stated maturity, by acceleration or otherwise) of the Obligations, the Pledgor
hereby transfers, assigns and pledges to the US Collateral Agent, for the benefit of the Secured
Parties, and hereby grants to the US Collateral Agent, for the benefit of the Secured Parties, a
security interest in and continuing lien on all of the Pledgor’s right, title and interest in and
to all of the following, (collectively, the “Collateral”):

(a) the Pledged Shares held by the Pledgor and the certificates, if any, representing
such Pledged Shares and any interest of the Pledgor, including all interests documented in
the entries on the books of the issuer of the Pledged Shares or any financial intermediary
pertaining to the Pledged Shares and all dividends, cash, warrants, rights, instruments and
other property or proceeds from time to time received, receivable or otherwise distributed
in respect of, or in exchange for, any or all of the Pledged Shares; provided that
the Pledged Shares under this Agreement shall not include any Excluded Capital Stock and in
no event shall the US Obligations be secured or purported to be secured by Pledged Shares of
any Capital Stock of any Foreign Subsidiary or of any Domestic Subsidiary treated as a
disregarded entity for US federal income tax purposes if substantially all of its assets
consist of Capital Stock of one or more Foreign Subsidiaries that are controlled foreign
corporations within the meaning of Section 957 of the Code, that is Voting Stock of such
Subsidiary in excess of 65% of the outstanding Capital Stock of such class;

(b) subject to Section 8, all rights and privileges of the Pledgor with respect to the
securities and other property referred to in clause (a) above; and

(c) to the extent not covered by clauses (a) and (b) above, respectively, all proceeds
of any or all of the foregoing Collateral. For purposes of this Agreement, the term
“proceeds” includes whatever is receivable or received when Collateral or proceeds are sold,
exchanged, collected or otherwise disposed of, whether such disposition is voluntary or
involuntary, and includes proceeds of any indemnity or guarantee payable to the Pledgor or
the US Collateral Agent from time to time with respect to any of the Collateral.

TO HAVE AND TO HOLD the Collateral, together with all right, title, interest, powers,
privileges and preferences pertaining or incidental thereto, unto the US Collateral Agent, for the
benefit of the Secured Parties, forever; subject, however, to the terms, covenants and conditions
hereinafter set forth.

3. Security for the Obligations. This Agreement secures the full and prompt payment
when due (whether at stated maturity, by acceleration or otherwise) of, and the performance of, all
the Obligations; provided that in no event shall the US Obligations be secured or purported
to be secured by Pledged Shares of any Capital Stock of any Foreign Subsidiary or of any Domestic
Subsidiary treated as a disregarded entity for US federal income tax purposes if substantially all
of its assets consist of Capital Stock of one or more Foreign Subsidiaries that are controlled
foreign corporations within the meaning of Section 957 of the Code, that is Voting Stock of such
Subsidiary in excess of 65% of the outstanding Capital Stock of such class. Without limiting the
generality of the foregoing, this Agreement secures the payment of all amounts that constitute part
of the Obligations and would be owed to the US Collateral Agent or the Secured Parties under the
Secured Debt Documents but for the fact that they are unenforceable or not allowable due to the
existence of a bankruptcy, reorganization or similar proceeding involving the Pledgor;
provided that in no event shall the US Obligations be secured or purported to be secured by
Pledged Shares of any Capital Stock of any Foreign Subsidiary or of any Domestic Subsidiary treated
as a disregarded entity for US federal income tax purposes if substantially all of its assets
consist of Capital Stock of one or more Foreign
Subsidiaries that are controlled foreign corporations within the meaning of Section 957 of the
Code, that is Voting Stock of such Subsidiary in excess of 65% of the outstanding Capital Stock of
such class.

 

-4-

 

4. Delivery of the Collateral and Filing.

(a) The Pledgor represents and warrants that all certificates or instruments, if any,
representing or evidencing the Collateral in existence on the date hereof have been delivered to
the US Collateral Agent (or its non-fiduciary agent or designee) in suitable form for transfer by
delivery or accompanied by duly executed instruments of transfer or assignment in blank. All
certificates or instruments, if any, representing or evidencing the Collateral created after the
date hereof shall be promptly (but in any event within thirty days after creation thereof)
delivered to and held by or on behalf of the US Collateral Agent (or its non-fiduciary agent or
designee) pursuant hereto and shall be in suitable form for transfer by delivery, or shall be
accompanied by duly executed instruments of transfer or assignment in blank. The US Collateral
Agent shall have the right, at any time after the occurrence and during the continuation of an
Event of Default and without notice to the Pledgor (except as otherwise expressly provided herein),
to transfer to or to register in the name of the US Collateral Agent or any of its nominees any or
all of the Pledged Shares. After the occurrence and during the continuance of an Event of Default,
the Pledgor will promptly give to the US Collateral Agent copies of any notices or other
communications received by it with respect to Pledged Shares registered in the name of the Pledgor.
After the occurrence and during the continuance of an Event of Default, the US Collateral Agent
shall have the right to exchange the certificates representing Pledged Shares for certificates of
smaller or larger denominations for any purpose consistent with this Agreement. Each delivery of
Collateral shall be accompanied by a schedule describing the securities theretofore and then being
pledged hereunder, which shall be attached hereto as part of Schedule 2 and made a part hereof;
provided that the failure to attach any such schedule hereto shall not affect the validity
of such pledge of such securities. Each schedule so delivered shall supersede any prior schedules
so delivered.

(b) The Pledgor hereby irrevocably authorizes the US Collateral Agent at any time and from
time to time to file in any relevant jurisdiction any initial financing statements with respect to
the Collateral or any part thereof and amendments thereto and renewals thereof that contain the
information required by the PPSA for the filing of any financing statement or amendment or renewal.
Such financing statements may describe the Collateral in the same manner as described herein or
may contain an indication or description of collateral that describes such property in any other
manner such as “all assets” or “all personal property, whether now owned or hereafter acquired” of
the Pledgor or words of similar effect as being of an equal or lesser scope or with greater detail.
The Pledgor agrees to provide such information to the US Collateral Agent promptly after any such
request. The Pledgor agrees to furnish the US Collateral Agent with written notice as required by
Section 4.2 of the US Security Agreement.

 

-5-

 

5. Representations and Warranties. The Pledgor represents and warrants to the US
Collateral Agent and each other Secured Party that:

(a) Schedule 2 hereto (i) correctly represents as of the date hereof the issuer, the
issuer’s jurisdiction of formation, the certificate number, if any, the Pledgor and the
record and beneficial owner, the number and class and the percentage of the issued and
outstanding Capital Stock of such class of all Pledged Shares and (ii) together with the
comparable schedule to each supplement hereto, includes, all Capital Stock, required to be
pledged pursuant to Section 9.11(a) of the Credit Agreement. Except as set forth on
Schedule 2 and except for Excluded Capital Stock, the Pledged Shares represent all of the
issued and outstanding Capital Stock of each class of Capital Stock in the issuer on the
date hereof.

(b) The Pledgor is the legal and beneficial owner of the Collateral pledged or assigned
by the Pledgor hereunder free and clear of any Lien, except for the Liens created by this
Agreement and the Credit Documents.

(c) As of the date of this Agreement, the Pledged Shares pledged by the Pledgor
hereunder have been duly authorized and validly issued and, in the case of Pledged Shares
issued by a corporation, are fully paid and non-assessable.

(d) Except for restrictions and limitations imposed by the Credit Documents or
securities laws generally and except as described in the Perfection Certificate, the
Collateral is freely transferable and assignable, and none of the Collateral is subject to
any option, right of first refusal, shareholders agreement, charter or by-law provisions or
contractual restriction of any nature that might prohibit, impair, delay or otherwise affect
the pledge of such Collateral hereunder, the sale or disposition thereof pursuant hereto or
the exercise by the US Collateral Agent of rights and remedies hereunder.

(e) No consent or approval of any Governmental Authority, any securities exchange or
any other Person was or is necessary to the validity of the pledge effected hereby (other
than such as have been obtained and are in full force and effect).

(f) The execution and delivery by the Pledgor of this Agreement and the pledge of the
Collateral pledged by the Pledgor hereunder pursuant hereto create a valid and enforceable
security interest in such Collateral and (i) in the case of certificates or instruments
representing or evidencing the Collateral, upon the earlier of (x) delivery of such
Collateral and any necessary endorsements to the extent necessary to the US Collateral Agent
(or its non-fiduciary agent or designee) in accordance with this Agreement and (y) the
filing of financing statements naming the Pledgor as “debtor” and the US Collateral Agent as
“secured party” in the applicable filing offices, and (ii) in the case of all other
Collateral which is capable of being perfected by the filing of financing statements upon
the filing of financing statements naming the Pledgor as “debtor” and the US Collateral
Agent as “secured party” and describing the Collateral in the applicable filing offices,
shall create a perfected security interest in such Collateral, securing the payment of the
Obligations, in favor of the US Collateral Agent, for the benefit of the Secured Parties,
subject to the effects of bankruptcy, insolvency, fraudulent conveyance, reorganization and
other similar laws relating to or affecting creditors’ rights generally and general
principles of equity (whether considered in a proceeding in equity or law).

 

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(g) The pledge effected hereby is effective to vest in the US Collateral Agent, for the
benefit of the Secured Parties, the rights of the US Collateral Agent in the Collateral as
set forth herein.

(h) The Pledgor has full power, authority and legal right to pledge all the Collateral
pledged by the Pledgor pursuant to this Agreement and this Agreement constitutes a legal,
valid and binding obligation of the Pledgor (in the case of the Capital Stock of Foreign
Subsidiaries, to the extent the creation of such security interest in the Capital Stock of
Foreign Subsidiaries other than a Subsidiary that is organized under the Applicable Laws of
a jurisdiction in Canada is governed by the PPSA), enforceable in accordance with its terms,
subject to the effects of bankruptcy, insolvency, fraudulent conveyance, reorganization and
other similar laws relating to or affecting creditors’ rights generally and general
principles of equity (whether considered in a proceeding in equity or law).

(i) The issuers listed on Schedule 2 are the only Subsidiaries of the Pledgor as of the
Closing Date.

6. [Reserved]

7. Further Assurances. Subject to any limitations set forth in the Credit Documents,
the Pledgor agrees that at any time and from time to time, at the expense of the Pledgor, it will
execute or otherwise authorize the filing of any and all further documents, financing statements,
agreements and instruments, and take all such further actions (including the filing and recording
of financing statements, deeds of trust and other documents), which may be required under any
Applicable Law, or which the US Collateral Agent may reasonably request, in order (x) to perfect
and protect any pledge, assignment or security interest granted or purported to be granted hereby
(including the priority thereof) or (y) to enable the US Collateral Agent to exercise and enforce
its rights and remedies hereunder with respect to any Collateral.

8. Voting Rights; Dividends and Distributions; Etc.

(a) So long as no Event of Default shall have occurred and be continuing:

(i) The Pledgor shall be entitled to exercise any and all voting and other consensual
rights pertaining to the Collateral or any part thereof for any purpose not prohibited by
the terms of this Agreement or the other Secured Debt Documents; provided that such
voting and other rights shall not be exercised in any manner that could materially and
adversely affect the rights inuring to a holder of any Pledged Shares or the rights and
remedies of any of the US Collateral Agent or the other Secured Parties under this
Agreement, the Credit Agreement or any other Credit Document or the ability of the Secured
Parties to exercise the same.

(ii) The US Collateral Agent shall execute and deliver (or cause to be executed and
delivered) to the Pledgor all such proxies and other instruments as the Pledgor may
reasonably request for the purpose of enabling the Pledgor to exercise the voting and other
rights that it is entitled to exercise pursuant to paragraph (i) above.

 

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(b) Subject to paragraph (c) below, the Pledgor shall be entitled to receive and retain and
use, free and clear of the Lien of this Agreement, any and all dividends, distributions,
redemptions, principal and interest made or paid in respect of the Collateral to the extent not
prohibited by any Secured Debt Document; provided, however, that any and all
noncash dividends, interest, principal or other distributions that would constitute Pledged Shares,
whether resulting from a subdivision, combination or reclassification of the outstanding Capital
Stock of the issuer of any Pledged Shares or received in exchange for Pledged Shares or any part
thereof, or in redemption thereof, or as a result of any merger, consolidation, amalgamation,
acquisition or other exchange of assets to which such issuer may be a party or otherwise, shall be,
and shall be forthwith delivered to the US Collateral Agent to hold as, Collateral and shall, if
received by the Pledgor, be received in trust for the benefit of the US Collateral Agent, be
segregated from the other property or funds of the Pledgor and be forthwith delivered to the US
Collateral Agent as Collateral in the same form as so received (with any necessary endorsement).

(c) Upon written notice to the Pledgor by the US Collateral Agent following the occurrence and
during the continuation of an Event of Default:

(i) all rights of the Pledgor to exercise or refrain from exercising the voting and
other consensual rights that it would otherwise be entitled to exercise pursuant to Section
8(a)(i) shall cease, and all such rights shall thereupon become vested in the US Collateral
Agent, which shall thereupon have the sole right to exercise or refrain from exercising such
voting and other consensual rights during the continuation of such Event of Default;
provided that, unless otherwise directed by the Required Lenders, the US Collateral
Agent shall have the right from time to time following the occurrence and during the
continuation of an Event of Default to permit the Pledgor to exercise such rights. After
all Events of Default have been cured or waived or otherwise cease to be continuing and the
Company has delivered to the US Collateral Agent a certificate to that effect, the Pledgor
will have the right to exercise the voting and consensual rights that the Pledgor would
otherwise be entitled to exercise pursuant to the terms of Section 8(a)(i) (and the
obligations of the US Collateral Agent under Section 8(a)(ii) shall be reinstated);

(ii) all rights of the Pledgor to receive the dividends, distributions and principal
and interest payments that the Pledgor would otherwise be authorized to receive and retain
pursuant to Section 8(b) shall cease, and all such rights shall thereupon become vested in
the US Collateral Agent, which shall thereupon have the sole right to receive and hold as
Collateral such dividends, distributions and principal and interest payments during the
continuation of such Event of Default. After all Events of Default have been cured or
waived or otherwise cease to be continuing and the Company has delivered to the US
Collateral Agent a certificate to that effect, the US Collateral Agent shall repay to the
Pledgor (without interest) and the Pledgor shall be entitled to receive, retain and use all
dividends, distributions and principal and interest payments that the Pledgor would
otherwise be permitted to receive, retain and use pursuant to the terms of Section 8(b);

(iii) all dividends, distributions and principal and interest payments that are
received by the Pledgor contrary to the provisions of Section 8(b) shall be received in
trust for the benefit of the US Collateral Agent, shall be segregated from other property or
funds of the Pledgor and shall forthwith be delivered to the US Collateral Agent as
Collateral in the same form as so received (with any necessary endorsements); and

 

-8-

 

(iv) in order to permit the US Collateral Agent to receive all dividends, distributions
and principal and interest payments to which it may be entitled under Section 8(b) above, to
exercise the voting and other consensual rights that it may be entitled to exercise pursuant
to Section 8(c)(i), and to receive all dividends, distributions and principal and interest
payments that it may be entitled to under Sections 8(c)(ii) and (c)(iii), the Pledgor shall
from time to time execute and deliver to the US Collateral Agent, appropriate proxies,
dividend payment orders and other instruments as the US Collateral Agent may reasonably
request.

(d) Any notice given by the US Collateral Agent to the Pledgor suspending their rights under
paragraph (c) of this Section 8 (i) may be given by telephone if promptly confirmed in writing,
(ii) may be given to the Pledgor at the same or different times and (iii) may suspend the rights of
the Pledgor under paragraph (a)(i) or paragraph (b) of this Section 8 in part without suspending
all such rights (as specified by the US Collateral Agent in its sole and absolute discretion) and
without waiving or otherwise affecting the US Collateral Agent’s rights to give additional notices
from time to time suspending other rights so long as an Event of Default has occurred and is
continuing.

9. Transfers and Other Liens; Additional Collateral; Etc. The Pledgor shall:

(a) not (i) except as expressly permitted by the Credit Agreement (including pursuant
to waivers and consents thereunder), sell or otherwise Dispose of, or grant any option or
warrant with respect to, any of the Collateral or (ii) create or suffer to exist any
consensual Lien upon or with respect to any of the Collateral, except for the Lien created
by this Agreement and the other Security Documents; provided that in the event the
Pledgor sells or otherwise disposes of assets as permitted by the Credit Agreement
(including pursuant to waivers and consents thereunder) and such assets are or include any
of the Collateral, the US Collateral Agent shall release such Collateral to the Pledgor free
and clear of the Lien created by this Agreement concurrently with the consummation of such
sale in accordance with Section 13.17 of the Credit Agreement and with Section 14 hereof;
and

(b) defend its and the US Collateral Agent’s title or interest in and to all the
Collateral (and in the Proceeds thereof) against any and all Liens (other than the Lien
created by this Agreement), however arising, and any and all Persons whomsoever and, subject
to Section 13.17 of the Credit Agreement and Section 14 hereof, to maintain and preserve
the Lien and security interest created by this Agreement until the Termination Date.

10. US Collateral Agent Appointed Attorney-in-Fact. The Pledgor hereby appoints,
which appointment is irrevocable and coupled with an interest, the US Collateral Agent as the
Pledgor’s attorney-in-fact, with full authority in the place and stead of the Pledgor and in the
name of the Pledgor or otherwise, to take any action and to execute any instrument, in each case
after the occurrence and during the continuation of an Event of Default, that the US
Collateral Agent may deem reasonably necessary or advisable to accomplish the purposes of this
Agreement, including to receive, endorse and collect all instruments made payable to the Pledgor
representing any dividend, distribution or principal or interest payment in respect of the
Collateral or any part thereof and to give full discharge for the same.

 

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11. The US Collateral Agent’s Duties. The powers conferred on the US Collateral Agent
hereunder are solely to protect its interest in the Collateral and shall not impose any duty upon
it to exercise any such powers. Except for the safe custody of any Collateral in its possession
and the accounting for moneys actually received by it hereunder, the US Collateral Agent shall have
no duty as to any Collateral, as to ascertaining or taking action with respect to calls,
conversions, exchanges, maturities, tenders or other matters relative to any Pledged Shares,
whether or not the US Collateral Agent or any other Secured Party has or is deemed to have
knowledge of such matters, or as to the taking of any necessary steps to preserve rights against
any parties or any other rights pertaining to any Collateral. The US Collateral Agent shall be
deemed to have exercised reasonable care in the custody and preservation of any Collateral in its
possession if such Collateral is accorded treatment substantially equal to that which the US
Collateral Agent accords its own property.

12. Remedies. If any Event of Default shall have occurred and be continuing and:

(a) The US Collateral Agent may exercise in respect of the Collateral, in addition to
other rights and remedies provided for herein or otherwise available to it, all the rights
and remedies of a secured party upon default under the PPSA, any other statute or otherwise
at law or in equity and also may without notice, except as specified below, sell the
Collateral or any part thereof in one or more parcels at public or private sale, at any
exchange broker’s board or at any of the US Collateral Agent’s offices or elsewhere, for
cash, on credit or for future delivery, at such price or prices and upon such other terms as
the US Collateral Agent may deem commercially reasonable irrespective of the impact of any
such sales on the market price of the Collateral. The US Collateral Agent shall be
authorized at any such sale (if it deems it advisable to do so) to restrict the prospective
bidders or purchasers of Collateral to Persons who will represent and agree that they are
purchasing the Collateral for their own account for investment and not with a view to the
distribution or sale thereof, and, upon consummation of any such sale, the US Collateral
Agent shall have the right to assign, transfer and deliver to the purchaser or purchasers
thereof the Collateral so sold. Each purchaser at any such sale shall hold the property
sold absolutely free from any claim or right on the part of the Pledgor, and the Pledgor
hereby waives (to the extent permitted by Applicable Law) all rights of redemption, stay
and/or appraisal that it now has or may at any time in the future have under any rule of law
or statute now existing or hereafter enacted. The US Collateral Agent or any other Secured
Party shall have the right upon any such public sale, and, to the extent permitted by
Applicable Law, upon any such private sale, to purchase all or any part of the Collateral so
sold, and the US Collateral Agent or such other Secured Party may, subject to (x) the
satisfaction in full of all payments due pursuant to Section 12(b)(i) and (y) the
satisfaction of the Obligations in accordance with the priorities set forth in Section
12(b), pay the purchase price by crediting the amount thereof against the Obligations;
provided that in no event shall there be applied towards the satisfaction of the US
Obligations

 

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proceeds of any such sale of the Capital Stock of any Foreign Subsidiary, or of any
Domestic Subsidiary treated as a disregarded entity for US federal income tax purposes if
substantially all of its assets consist of Capital Stock of one or more Foreign Subsidiaries
that are controlled foreign corporations within the meaning of Section 957 of the Code (in
either case securing or purporting to secure the US Obligations), derived from Voting Stock
of such Subsidiary in excess of 65% of the outstanding Capital Stock of such class. The
Pledgor agrees that, to the extent notice of sale shall be required by law, at least ten
days’ notice to the Pledgor of the time and place of any public sale or the time after which
any private sale is to be made shall constitute reasonable notification. The US Collateral
Agent shall not be obligated to make any sale of Collateral regardless of notice of sale
having been given. The US Collateral Agent may adjourn any public or private sale from time
to time by announcement at the time and place fixed therefor, and such sale may, without
further notice, be made at the time and place to which it was so adjourned. To the extent
permitted by Applicable Law, the Pledgor hereby waives any claim against the US Collateral
Agent arising by reason of the fact that the price at which any Collateral may have been
sold at such a private sale was less than the price that might have been obtained at a
public sale, even if the US Collateral Agent accepts the first offer received and does not
offer such Collateral to more than one offeree. As an alternative to exercising the power
of sale herein conferred upon it, the US Collateral Agent may proceed by a suit or suits at
law or in equity to foreclose this Agreement and to sell the Collateral or any portion
thereof pursuant to a judgment or decree of a court or courts having competent jurisdiction
or pursuant to a proceeding by a court-appointed receiver.

(b) The US Collateral Agent shall apply the proceeds of any collection or sale of the
Collateral at any time after receipt in accordance with the priority set forth in Section
5.4 of the US Security Agreement; provided that in no event shall there be applied
towards the satisfaction of the US Obligations proceeds of any such collection or sale of
the Capital Stock of any Foreign Subsidiary, or of any Domestic Subsidiary treated as a
disregarded entity for US federal income tax purposes if substantially all of its assets
consist of Capital Stock of one or more Foreign Subsidiaries that are controlled foreign
corporations within the meaning of Section 957 of the Code (in either case securing or
purporting to secure the US Obligations), derived from Voting Stock of such Subsidiary in
excess of 65% of the outstanding Capital Stock of such class.

Upon any sale of the Collateral by the US Collateral Agent (including pursuant to a
power of sale granted by statute or under a judicial proceeding), the receipt of the US
Collateral Agent or of the officer making the sale shall be a sufficient discharge to the
purchaser or purchasers of the Collateral so sold and such purchaser or purchasers shall not
be obligated to see to the application of any part of the purchase money paid over to the US
Collateral Agent or such officer or be answerable in any way for the misapplication thereof.

(c) The US Collateral Agent may exercise any and all rights and remedies of the Pledgor
in respect of the Collateral.

 

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(d) All payments received by the Pledgor after the occurrence and during the
continuation of an Event of Default in respect of the Collateral shall be received in trust
for the benefit of the US Collateral Agent, shall be segregated from other property or
funds of the Pledgor and shall be forthwith delivered to the US Collateral Agent (or its
non-fiduciary agent or designee) as Collateral in the same form as so received (with any
necessary endorsement).

(e) If the US Collateral Agent shall determine to exercise its right to sell all or any
of the Pledged Shares pursuant to this Section 12, the Pledgor recognizes that the US
Collateral Agent may be unable to effect a public sale of any or all of the Pledged Shares,
by reason of certain prohibitions contained in the Securities Act of any applicable Canadian
jurisdiction, as from time to time amended (a “Securities Act”) or otherwise, and may be
compelled to resort to one or more private sales thereof to a restricted group of purchasers
which will be obliged to agree, among other things, to acquire such securities for their own
account for investment and not with a view to the distribution or resale thereof. The
Pledgor acknowledges and agrees that any such private sale may result in prices and other
terms less favorable than if such sale were a public sale and, notwithstanding such
circumstances, agrees that any such private sale shall be deemed to have been made in a
commercially reasonable manner. The US Collateral Agent shall be under no obligation to
delay a sale of any of the Pledged Shares for the period of time necessary to permit the
issuer thereof to register such securities for public sale under any such Securities Act, or
under other applicable laws, even if such issuer would agree to do so.

(f) If the US Collateral Agent determines to exercise its right to sell any or all of
the Collateral, upon written request, the Pledgor shall, from time to time, furnish to the
US Collateral Agent all such information as the US Collateral Agent may reasonably request
in order to determine the number of shares and other instruments included in the Collateral
which may be sold by the US Collateral Agent as exempt transactions under the Securities Act
and rules of the SEC, as the same are from time to time in effect.

(g) The US Collateral Agent may seek the appointment of a receiver, receiver-manager or
keeper (a “Receiver”) under the laws of Canada or any Province thereof to take possession of
all or any portion of the Collateral of the Pledgor or to operate same and, to the maximum
extent permitted by law, may seek the appointment of such a receiver without the requirement
of prior notice or a hearing. Any such Receiver shall, so far as concerns responsibility
for his/her acts, be deemed agent of the Pledgor and not the US Collateral Agent and the
Secured Parties, and the US Collateral Agent and the Secured Parties shall not be in any way
responsible for any misconduct, negligence or non-feasance on the part of any such Receiver,
his/her servants or employees other than for gross negligence or wilful misconduct. Subject
to the provisions of the instrument appointing him/her, any such Receiver shall have power
to take possession of Collateral of the Pledgor, to preserve Collateral of the Pledgor or
its value, to carry on or concur in carrying on all or any part of the business of the
Pledgor and to sell, lease, license or otherwise dispose of or concur in selling, leasing,
licensing or otherwise disposing of Collateral of the Pledgor. To facilitate the forgoing
powers, any such Receiver may, to the exclusion of all others, including the Pledgor, enter
upon, use and occupy all premises owned or occupied by the Pledgor wherein Collateral of the
Pledgor may be situated, maintain Collateral of the Pledgor upon such premises, borrow money
on its own behalf
or on behalf of the Secured Parties on a secured or unsecured basis and use Collateral
of the Pledgor directly in carrying on the Pledgor’s business or as security for loans or
advances to enable the Receiver to carry on the Pledgor’s business or otherwise, as such
Receiver shall, in its discretion, determine. Except as may be otherwise directed by US
Collateral Agent, all money received from time to time by such Receiver in carrying out
his/her appointment shall be received in trust for and paid over to US Collateral Agent.
Every such Receiver may, in the discretion of the US Collateral Agent, be vested with all or
any of the rights and powers of the US Collateral Agent and the Secured Parties. The US
Collateral Agent may, either directly or through its nominees, exercise any or all powers
and rights given to a receiver by virtue of the foregoing provisions of this paragraph.

 

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13. Amendments, etc. with Respect to the Obligations; Waiver of Rights. Except for
the termination of the Pledgor’s Obligations hereunder as expressly provided in Section 14, the
Pledgor shall remain obligated hereunder notwithstanding that, without any reservation of rights
against the Pledgor and without notice to or further assent by the Pledgor, (a) any demand for
payment of any of the Obligations made by the US Collateral Agent or any other Secured Party may be
rescinded by such party and any of the Obligations continued, (b) the Obligations, or the liability
of any other party upon or for any part thereof, or any collateral security or guarantee therefor
or right of offset with respect thereto, may, from time to time, in whole or in part, be renewed,
extended, amended, modified, accelerated, compromised, waived, surrendered or released by the US
Collateral Agent or any other Secured Party, (c) the Secured Debt Documents and any other documents
executed and delivered in connection therewith may be amended, modified, supplemented or
terminated, in whole or in part, in accordance with the terms of the applicable Secured Debt
Document, and (d) any collateral security, guarantee or right of offset at any time held by the US
Collateral Agent or any other Secured Party for the payment of the Obligations may be sold,
exchanged, waived, surrendered or released. Neither the US Collateral Agent nor any other Secured
Party shall have any obligation to protect, secure, perfect or insure any Lien at any time held by
it as security for the Obligations or for this Agreement or any property subject thereto. When
making any demand hereunder against the Pledgor, the US Collateral Agent or any other Secured Party
may, but shall be under no obligation to, make a similar demand on the US Borrowers (to the extent
such demand is in respect of any Obligations owing by the US Borrowers) or any US Pledgor (as
defined in the US Pledge Agreement), and any failure by the US Collateral Agent or any other
Secured Party to make any such demand or to collect any payments from the US Borrowers or any US
Pledgor or any release of the US Borrowers or any US Pledgor shall not relieve the Pledgor in
respect of which a demand or collection is not made or the Pledgor not so released of its several
obligations or liabilities hereunder, and shall not impair or affect the rights and remedies,
express or implied, or as a matter of law, of the US Collateral Agent or any other Secured Party
against the Pledgor. For the purposes hereof “demand” shall include the commencement and
continuation of any legal proceedings.

14. Continuing Security Interest; Assignments Under the Secured Debt Documents;
Release.

(a) This Agreement and the security interest granted hereunder shall remain in full force and
effect and be binding in accordance with and to the extent of its terms upon the
Pledgor and the successors and assigns thereof, and shall inure to the benefit of the US
Collateral Agent and the other Secured Parties and their respective successors, indorsees,
transferees and assigns, until the Termination Date, notwithstanding the from time to time prior to
the Termination Date the Pledgor may be free from any Obligations.

 

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(b) The Pledgor shall automatically be released from its obligations hereunder and the pledge
of the Pledgor shall be automatically released upon the consummation of any transaction permitted
by the Credit Agreement as a result of which the Pledgor ceases to be a Restricted Subsidiary of
the Company or otherwise becomes an Excluded Subsidiary; provided that the Required Lenders shall
have consented to such transaction (to the extent such consent is required by the Credit Agreement)
and the terms of such consent did not provide otherwise.

(c) The obligations created hereby of the Pledgor with respect to Collateral shall be
automatically released and such Collateral sold free and clear of the Lien and security interests
created hereby (i) upon any Disposition by the Pledgor of any Collateral that is (i) permitted
under the Credit Agreement (other than to the Company or any US Subsidiary Pledgor) or (ii) upon
the effectiveness of any written consent to the release of the security interests granted hereby in
any Collateral pursuant to Section 13.1 of the Credit Agreement.

(d) In connection with any termination or release pursuant to paragraph (a), (b), or (c), the
US Collateral Agent shall execute and deliver to the Pledgor or authorize the filing of, at the
Pledgor’s expense, all documents that the Pledgor shall reasonably request to evidence such
termination or release provided, however, that with respect to the release of any
item of Collateral pursuant to Section 14(c)(i) in connection with any request of evidence of
termination or release made of the US Collateral Agent, the US Collateral Agent may request that
the Pledgor deliver a certificate of an Authorized Officer to the effect that the sale or transfer
transaction is in compliance with the Credit Documents. Any execution and delivery of documents
pursuant to this Section 14 shall be without recourse to or warranty by the US Collateral Agent.

15. Reinstatement. This Agreement shall continue to be effective, or be reinstated,
as the case may be, if at any time payment, or any part thereof, of any of the Obligations is
rescinded or must otherwise be restored or returned by the US Collateral Agent or any other Secured
Party upon the insolvency, bankruptcy, dissolution, liquidation or reorganization of the US
Borrowers, any US Pledgor, or the Pledgor, or upon or as a result of the appointment of a receiver,
intervenor or conservator of, or trustee or similar officer for, the US Borrowers, any US Pledgor,
the Pledgor or any substantial part of its property, or otherwise, all as though such payments had
not been made.

16. Notices. All notices, requests and demands pursuant hereto shall be made in
accordance with Section 13.2 of the Credit Agreement. All communications and notices hereunder to
the Pledgor shall be given to it in care of the Company at the Company’s address set forth in
Section 13.2 of the Credit Agreement.

17. Counterparts. This Agreement may be executed by one or more of the parties to
this Agreement on any number of separate counterparts (including by facsimile or other electronic
transmission (i.e., a “pdf” or “tif”)), and all of said counterparts taken together
shall be deemed to constitute one and the same instrument. A set of the copies of this
Agreement signed by all the parties shall be lodged with the US Collateral Agent and the Company.

 

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18. Severability. Any provision of this Agreement that 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. The parties hereto shall endeavor in good-faith
negotiations to replace the invalid, illegal or unenforceable provisions with valid provisions the
economic effect of which comes as close as possible to that of the invalid, illegal or
unenforceable provisions.

19. Integration. This Agreement represents the agreement of the Pledgor with respect
to the subject matter hereof and there are no promises, undertakings, representations or warranties
by the US Collateral Agent or any other Secured Party relative to the subject matter hereof not
expressly set forth or referred to herein or in the other Secured Debt Documents.

20. Amendments in Writing; No Waiver; Cumulative Remedies.

(a) None of the terms or provisions of this Agreement may be waived, amended, supplemented or
otherwise modified except by a written instrument executed by the Pledgor and the US Collateral
Agent in accordance with Section 13.1 of the Credit Agreement.

(b) Neither the US Collateral Agent nor any other Secured Party shall by any act (except by a
written instrument pursuant to Section 20(a) hereof), delay, indulgence, omission or otherwise be
deemed to have waived any right or remedy hereunder or to have acquiesced in any Default or Event
of Default or in any breach of any of the terms and conditions hereof. No failure to exercise, nor
any delay in exercising, on the part of the US Collateral Agent or any other Secured Party, any
right, power or privilege hereunder shall operate as a waiver thereof. No single or partial
exercise of any right, power or privilege hereunder shall preclude any other or further exercise
thereof or the exercise of any other right, power or privilege. A waiver by the US Collateral
Agent or any other Secured Party of any right or remedy hereunder on any one occasion shall not be
construed as a bar to any right or remedy that the US Collateral Agent or such other Secured Party
would otherwise have on any future occasion.

(c) The rights, remedies, powers and privileges herein provided are cumulative, may be
exercised singly or concurrently and are not exclusive of any other rights or remedies provided by
law.

21. Section Headings. The Section headings used in this Agreement are for convenience
of reference only and are not to affect the construction hereof or be taken into consideration in
the interpretation hereof.

22. Successors and Assigns. The provisions of this Agreement shall be binding upon
and inure to the benefit of the parties hereto and their respective successors and assigns, except
that the Pledgor may not assign, transfer or delegate any of its rights or
obligations under this Agreement without the prior written consent of the US Collateral Agent,
except pursuant to a transaction expressly permitted by the Credit Agreement.

 

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23. WAIVER OF JURY TRIAL. EACH PARTY HERETO HEREBY IRREVOCABLY AND UNCONDITIONALLY
WAIVES TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING RELATING TO THIS AGREEMENT, ANY OTHER CREDIT
DOCUMENT AND FOR ANY COUNTERCLAIM THEREIN.

24. Submission to Jurisdiction; Waivers. The Pledgor hereby irrevocably and
unconditionally:

(a) submits for itself and its property in any legal action or proceeding relating to
this Agreement, and the other Credit Documents to which it is a party, or for recognition
and enforcement of any judgment in respect thereof, to the non-exclusive jurisdiction of a
court of competent jurisdiction in the Province of Ontario;

(b) consents that any such action or proceeding shall be brought in such courts and
waives any objection that it may now or hereafter have to the venue of any such action or
proceeding in any such court or that such action or proceeding was brought in an
inconvenient court and agrees not to plead or claim the same;

(c) agrees that service of process in any such action or proceeding may be effected by
mailing a copy thereof by registered or certified mail (or any substantially similar form of
mail), postage prepaid, to the Pledgor at its address referred to in Section 16 or at such
other address of which the US Collateral Agent shall have been notified pursuant thereto;

(d) agrees that nothing herein shall affect the right of the US Collateral Agent or any
other Secured Party to effect service of process in any other manner permitted by Applicable
Law or shall limit the right of the US Collateral Agent or any other Secured Party to sue in
any other jurisdiction; and

(e) waives, to the maximum extent not prohibited by law, any right it may have to claim
or recover in any legal action or proceeding referred to in this Section 24 any special,
exemplary, punitive or consequential damages.

25. GOVERNING LAW. THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES
HEREUNDER SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAWS OF THE
PROVINCE OF ONTARIO AND THE FEDERAL LAWS OF CANADA APPLICABLE THEREIN.

[Signature Pages Follow]

 

-16-

 

IN WITNESS WHEREOF, each of the undersigned has caused this Agreement to be duly executed and
delivered by its duly authorized officer as of the day and year first above written.

	 	 	 	 	 
	 	GENTEK BUILDING PRODUCTS, INC., as a Pledgor

 	 
	 	By:  	/s/ Vicki Hardman
 	 
	 	 	Name:  	VICKI HARDMAN 	 
	 	 	Title:  	VICE PRESIDENT 	 

[Gentek Building Products, Inc. — Canadian Pledge Agreement]

 

 

	 	 	 	 	 
	 	UBS AG, STAMFORD BRANCH,

as US Collateral Agent

 	 
	 	By:  	/s/ Mary E. Evans
 	 
	 	 	Name:  	Mary E. Evans 	 
	 	 	Title:  	Associate Director Banking Products
Services. US 	 
	 
	 	By:  	              /s/ Irja R. Otsa
 	 
	 	 	Name:  	Irja R. Otsa 	 
	 	 	Title:  	Associate Director Banking Products
Services. US 	 

[Gentek Building Products, Inc. — Canadian Pledge Agreement]

 

 

 

SCHEDULE 1

TO THE CANADIAN

PLEDGE AGREEMENT

PLEDGED SHARES1

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Percentage	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	of Issued	 
	 	 	 	 	Issuer’s	 	Class of	 	Certificate	 	 	 	 	 	and	 
	 	 	 	 	jurisdiction	 	Equity	 	No(s), if	 	Number of	 	 	Outstanding	 
	Pledgor	 	Issuer	 	of formation	 	Interest	 	any	 	Units	 	 	Units	 
	Gentek Building Products, Inc.
	 	Associated Materials Canada Limited	 	Ontario	 	Common Shares	 	C 009	 	 	65	 	 	 	65	%
	Gentek Building Products, Inc.
	 	Associated Materials Canada Limited	 	Ontario	 	Common Shares	 	C 010	 	 	35	 	 	 	35	%
	Gentek Building Products, Inc.
	 	Gentek Canada Holdings Limited	 	Ontario	 	Common Shares	 	C-1	 	 	650	 	 	 	65	%
	Gentek Building Products, Inc.
	 	Gentek Canada Holdings Limited	 	Ontario	 	Common Shares	 	C-2	 	 	350	 	 	 	35	%

 

	 	 	 
	1	 	The Pledged Shares of the Pledgor included in this
Schedule 1 represent share certificates outstanding as of the date hereof.
However, immediately after the Closing (as defined in the Credit Agreement)
these outstanding share certificates will be cancelled (on account of being
lost) and subsequently reissued with replacement share certificates within the
time period required by Schedule 9.17 to the Credit Agreement.

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"}]]