Document:

Amended and Restated U.S. Security Agreement, dated as of 12/19/2006

   
  
 Exhibit 10.4
  
  
 EXECUTION COPY
  
 
 
	 

 
 
 

 
  
 AMENDED AND RESTATED U.S. SECURITY AGREEMENT
 

 among
 

 ALERIS INTERNATIONAL, INC.,
 
 
 CERTAIN SUBSIDIARIES OF ALERIS INTERNATIONAL, INC.,
 

 and
 

 DEUTSCHE BANK AG NEW YORK BRANCH,
 as COLLATERAL AGENT
  
 ______________________

 Dated
as of August 1, 2006
 and amended and
restated as of December 19, 2006
 ______________________
 

  
  
 

  
 
	 

 
 
 

  
  
  
  
  
  
  
  
  
    
 
   
  
 
 
   
 
 
  

  
 
	 ARTICLE I  SECURITY INTERESTS
 	 2
 
	 	 1.1. Grant
of Security Interests
 	 2
 
	 	 1.2. Power
of Attorney
 	 5
 
	 	 
	 ARTICLE II  GENERAL REPRESENTATIONS, WARRANTIES AND COVENANTS
 	 5
 
	 	 2.1.
Necessary Filings
 	 6
 
	 	 2.2. No
Liens
 	 6
 
	 	 2.3. Other
Financing Statements
 	 6
 
	 	 2.4. Chief
Executive Office, Location of Inventory and Included Equipment
 	 6
 
	 	 2.5. Legal
Names; Type of Organization (and Whether a Registered Organization and/or a Transmitting Utility); Jurisdiction of Organization; Location; Organizational Identification Numbers; Changes Thereto; etc.
 	 6
 
	 	 2.6.
Certain Significant Transactions
 	 7
 
	 	 2.7.
As-Extracted Collateral; Timber-to-be-Cut
 	 7
 
	 	 2.8.
Collateral in the Possession of a Bailee
 	 7
 
	 	 2.9.
Recourse
 	 8
 
	 	 
	 ARTICLE III   SPECIAL PROVISIONS CONCERNING ACCOUNTS; CONTRACT RIGHTS; INSTRUMENTS; CHATTEL PAPER AND CERTAIN OTHER COLLATERAL
 	 8
 
	 	 3.1.
Additional Representations and Warranties
 	 8
 
	 	 3.2.
Maintenance of Records
 	 8
 
	 	 3.3.
Direction to Account Debtors; Contracting Parties; etc
 	 9
 
	 	 3.4.
Modification of Terms; etc
 	 9
 
	 	 3.5.
Collection
 	 9
 
	 	 3.6.
Instruments
 	 10
 
	 	 3.7.
Assignors Remain Liable Under Accounts
 	 10
 
	 	 3.8.
Assignors Remain Liable Under Contracts
 	 10
 
	 	 3.9.
Deposit Accounts; Etc
 	 11
 
	 	 3.10.
Letter-of-Credit Rights
 	 11
 
	 	 3.11.
Commercial Tort Claims
 	 12
 
	 	 3.12.
Chattel Paper
 	 12
 
	 	 3.13.
Further Actions
 	 12
 
	 	 3.14.
Overriding Provisions with respect to ABL Priority Collateral
 	 12
 
	 	 
	 ARTICLE IV  SPECIAL PROVISIONS CONCERNING TRADEMARKS AND DOMAIN NAMES
 	 13
 
	 	 4.1.
Additional Representations and Warranties
 	 13
 
	 	 4.2.
Licenses and Assignments
 	 13
 
	 	 4.3.
Infringements
 	 13
 
	 	 4.4.
Preservation of Marks and Domain Names
 	 13
 
	 	 4.5.
Maintenance of Registration
 	 14
 
	 	 4.6. Future
Registered Marks and Domain Names
 	 14
 
	 	 4.7.
Remedies
 	 14
 
	 	 
	 ARTICLE V  SPECIAL PROVISIONS CONCERNING PATENTS, COPYRIGHTS AND TRADE SECRETS
 	 15
 
	 	 5.1.
Additional Representations and Warranties
 	 15
 
	 	 5.2.
Licenses and Assignments
 	 15
 
	 	 5.3.
Infringements
 	 15
 
	 	 5.4.
Maintenance of Patents or Copyrights
 	 15
 
	 	 5.5.
Prosecution of Patent or Copyright Applications
 	 16
 
	 	 5.6. Other
Patents and Copyrights
 	 16
 
	 	 5.7.
Remedies
 	 16
 
	 	 
	 ARTICLE VI  PROVISIONS CONCERNING ALL COLLATERAL
 	 16
 
	 	 6.1.
Protection of Collateral Agent’s Security
 	 16
 
	 	 6.2.
Warehouse Receipts Non-Negotiable
 	 17
 
	 	 6.3.
Additional Information
 	 17
 
	 	 6.4.
Further Actions
 	 17
 
	 	 6.5.
Financing Statements
 	 17
 
	 	 
	 ARTICLE VII  REMEDIES UPON OCCURRENCE OF AN EVENT OF DEFAULT
 	 18
 
	 	 7.1.
Remedies; Obtaining the Collateral Upon Default
 	 18
 
	 	 7.2.
Remedies; Disposition of the Collateral
 	 19
 
	 	 7.3. Waiver
of Claims
 	 20
 
	 	 7.4.
Application of Proceeds
 	 20
 
	 	 7.5.
Remedies Cumulative
 	 25
 
	 	 7.6.
Discontinuance of Proceedings
 	 25
 
	 	 
	 ARTICLE VIII  INDEMNITY
 	 25
 
	 	 8.1.
Indemnity
 	 25
 
	 	 8.2.
Indemnity Obligations Secured by Collateral; Survival
 	 27
 
	 	 
	 ARTICLE IX  DEFINITIONS
 	 27
 
	 	 
	 ARTICLE X  MISCELLANEOUS
 	 36
 
	 	 10.1.
Notices
 	 36
 
	 	 10.2.
Waiver; Amendment
 	 37
 
	 	 10.3.
Obligations Absolute
 	 37
 
	 	 10.4.
Successors and Assigns
 	 38
 
	 	 10.5.
Headings Descriptive
 	 38
 
	 	 10.6.
GOVERNING LAW; SUBMISSION TO JURISDICTION; VENUE; WAIVER OF JURY TRIAL
 	 38
 
	 	 10.7.
Assignors’ Duties
 	 39
 
	 	 10.8.
Termination; Release
 	 39
 
	 	 10.9.
Counterparts
 	 41
 
	 	 10.10.
Severability
 	 41
 
	 	 10.11. The
Collateral Agent and the other Secured Creditors
 	 41
 
	 	 10.12.
Additional Assignors
 	 41
 
	 	 10.13.
Amendment and Restatement
 	 41
 
	 	 10.14.
Calculation of Obligations under Secured Hedging Agreements
 	 41
 

 
 
  
 
 
	 ANNEX
A
 	 Schedule of
Chief Executive Offices; Inventory and Equipment Locations in Alabama, Arizona, Florida and Mississippi
 
	 ANNEX
B
 	 Schedule of
Legal Names, Type of Organization (And Whether A Registered Organization And/Or A Transmitting Utility), Jurisdiction of Organization, Location and Organizational Identification Numbers
 
	 ANNEX
C
 	 Description of
Certain Significant Transactions Occurring Within One Year Prior To The Date of The U.S. Security Agreement
 
	 ANNEX
D
 	 Schedule of
Deposit Accounts
 
	 ANNEX
E
 	 Form of
Control Agreement Regarding Deposit Accounts
 
	 ANNEX
F
 	 Description of
Commercial Tort Claims
 
	 ANNEX
G
 	 Schedule of
Marks and Applications; Internet Domain Name Registration
 
	 ANNEX
H
 	 Schedule of
Patents
 
	 ANNEX
I
 	 Schedule of
Copyrights
 
	 ANNEX
J
 	 Form of Grant
of Security Interest in United States Trademarks
 
	 ANNEX
K
 	 Form of Grant
of Security Interest in United States Patents
 
	 ANNEX
L
 	 Form of Grant
of Security Interest in United States Copyrights
 
	 ANNEX
M
 	 The Collateral
Agent
 

 
 
  
  
    
 
   
  
 

   
 
 
 
 
 AMENDED AND RESTATED U.S. SECURITY AGREEMENT
  
 AMENDED AND RESTATED
U.S. SECURITY AGREEMENT, dated as of August 1, 2006 and amended and restated as of December 19, 2006, made by each of the undersigned assignors (each, an “Assignor” and, together with any other entity that becomes an assignor hereunder
pursuant to Section 10.12 hereof, the “Assignors”) in favor of
DEUTSCHE BANK AG, NEW YORK BRANCH, as administrative agent (together with any successor administrative agent, the “Administrative Agent”) and as collateral agent (together with any successor Collateral Agent, the “Collateral Agent”), for the benefit of the Secured Creditors (as defined below).
Certain capitalized terms as used herein are defined in Article IX hereof. Except as otherwise defined herein, all capitalized terms used herein and defined in the Credit Agreement (as defined below) shall be used herein as therein
defined.
  
 WITNESSETH:

 
 WHEREAS, Aurora Acquisition Merger Sub, Inc., Aleris International, Inc., a Delaware corporation (“Aleris”), each other Subsidiary of Aleris party thereto from time to time, the
lenders party thereto from time to time, (the “Lenders”), the
Administrative Agent and Deutsche Bank AG, Canada Branch, as Canadian administrative agent (together with any successor Canadian administrative agent, the “Canadian Administrative Agent” and together with the Lenders, each Issuing
Lender, the Administrative Agent and the Collateral Agent are herein called the “Lender Creditors”) have entered into an Amended and Restated Credit Agreement, dated as of August 1, 2006 and amended and restated as of December 19, 2006, providing for the making and
continuation of Loans to the Borrowers and the issuance of, and participation in, Letters of Credit for the account of the Borrowers, all as contemplated therein (as used herein, the term “Credit Agreement” means the Credit Agreement described above in this paragraph,
as the same may be amended, modified, extended, renewed, replaced, restated, supplemented or refinanced from time to time, and including any agreement extending the maturity of, or refinancing or restructuring (including, but not limited to, the
inclusion of additional borrowers or guarantors thereunder or any increase in the amount borrowed) all or any portion of, the indebtedness under such agreement or any successor agreement, whether or not with the same agent, trustee, representative,
lenders or holders; provided that, with respect to any agreement providing
for the refinancing or replacement of indebtedness under the Credit Agreement, such agreement shall only be treated as, or as part of, the Credit Agreement hereunder if (i) either (A) all obligations under the Credit Agreement being refinanced or
replaced shall be paid in full at the time of such refinancing or replacement, and all commitments and letters of credit issued pursuant to the refinanced or replaced Credit Agreement shall have terminated in accordance with their terms or, with
respect to certain Letters of Credit, been continued, with the consent of the respective issuer thereof, under such refinancing or replacement indebtedness or (B) the Required Lenders shall have consented in writing to the refinancing or replacement
indebtedness being treated as indebtedness pursuant to the Credit Agreement, and (ii) a notice to the effect that the refinancing or replacement indebtedness shall be treated as issued under the Credit Agreement shall be delivered by Aleris to the
Collateral Agent);
  
 WHEREAS, each Borrower and/or one or more of their
respective Subsidiaries (i) have entered into, or guaranteed the obligations of, or (ii) may at any time after the Restatement Effective Date and from time to time enter into one or more Secured Hedging Agreements with one or more Persons other
than the Borrowers and their Subsidiaries (the “Other Creditors”);
  
 WHEREAS, each Borrower, one or more of their respective
Subsidiaries and any Lender (and/or one or more of its banking affiliates) reasonably acceptable to the Administrative Agent, in each case designated to the Administrative Agent in writing by Aleris as a provider of Treasury Services (as defined
below), (collectively, the “Treasury Services Creditors” and,
together with the Lender Creditors and the Other Creditors, the “Secured Creditors”) in the future may enter into, a credit arrangement providing for treasury, depositary or cash management services (including without limitation, overnight overdraft
services) to Aleris and such Subsidiaries by the Treasury Services Creditors, and automated clearinghouse transfers of funds to the Treasury Services Creditors, in each case pursuant to uncommitted lines of credit (collectively, “Treasury Services,” and with any written agreement evidencing such credit
arrangements (to the extent expressly stated therein that the liabilities and indebtedness thereunder are “Obligations” for the purposes of this Agreement (or more generally, for purposes of the various agreements guaranteeing or
securing the Credit Agreement), as amended, modified, supplemented, replaced or refinanced from time to time, herein called the “Treasury Services
Agreements);
  
 WHEREAS, pursuant to the U.S. Borrower Guaranty, each of
the U.S. Borrowers has guaranteed to the Secured Creditors the payment when due of all of its Relevant Guaranteed Obligations as described therein;
  
 WHEREAS, pursuant to the U.S. Subsidiaries Guaranty, each U.S. Subsidiary Guarantor has jointly and severally guaranteed to the Secured Creditors the
payment when due of all Guaranteed Obligations (as defined in the U.S. Subsidiaries Guaranty);
  
 WHEREAS, the Intercreditor Agreement governs the relative
rights and priorities of the Secured Creditors and the Term Secured Parties in respect of the Term Priority Collateral and the ABL Priority Collateral (and with respect to certain other matters as described therein);
  
 WHEREAS, it is a condition precedent to (i) the making and/or continuation of Loans to the Borrowers, and the issuance of, and participation in, Letters of
Credit for the respective accounts of the Borrowers under the Credit Agreement, (ii) the Other Creditors entering into Secured Hedging Agreements and (iii) the extension of the Treasury Services by Treasury Services Creditors, that each Assignor
shall have executed and delivered to the Administrative Agent this Agreement; and
  
 WHEREAS, each Assignor will obtain benefits from the
incurrence and/or continuation of Loans by the Borrowers, and the issuance of, and participation in, Letters of Credit for the respective accounts of, the Borrowers under the Credit Agreement, the entering into by the Borrowers and/or one or more of
their respective Subsidiaries of Secured Hedging Agreements and the extension of Treasury Services to Aleris and its Subsidiaries, and, accordingly, each Assignor desires to enter into this Agreement in order to (i) satisfy the condition described
in the preceding paragraph and (ii) induce (x) the Lenders to make and/or continue Loans to the Borrowers and issue, and/or participate in, Letters of Credit for the respective accounts of the Borrowers, (y) the Other Creditors to enter into Secured
Hedging Agreements with the Borrowers and/or one or more of their respective Subsidiaries and (z) the Treasury Services Creditors to enter into Treasury Services Agreements;
  
 NOW, THEREFORE, in consideration of the benefits accruing to each Assignor, the receipt and sufficiency of which are hereby acknowledged, each Assignor
hereby makes the following representations and warranties to the Collateral Agent for the benefit of the Secured Creditors and hereby covenants and agrees with the Collateral Agent for the benefit of the Secured Creditors as follows:

 
 ARTICLE I
  

 
 SECURITY INTERESTS
  
 1.1. Grant of Security Interests. (a)
Subject to the terms of the Intercreditor Agreement with respect to rights and remedies between the Collateral Agent and the Term Collateral Agent, as security for the prompt and complete payment when due of all of its Obligations, each Assignor
does hereby assign and transfer unto the Collateral Agent, and does hereby pledge and grant to the Collateral Agent, for the benefit of the Secured Creditors, a continuing security interest in all of the right, title and interest of such Assignor
in, to and under all of the following personal property and fixtures (and all rights therein) of such Assignor, or in which or to which such Assignor has any rights, in each case whether now existing or hereafter from time to time
acquired:
  
 
	 	 (i)
 	 each and every Account;
 

 
  
 
	 	 (ii)
 	 all cash;
 

 
  
 
	 	 (iii)
 	 the Cash Collateral Account and all monies, securities, Instruments and other
investments deposited or required to be deposited in the Cash Collateral Account;
 

 
  
 
	 	 (iv)
 	 all Chattel Paper (including, without limitation, all Tangible Chattel Paper and all
Electronic Chattel Paper);
 

 
  
 
	 	 (v)
 	 all Commercial Tort Claims;
 

 
  
 
	 	 (vi)
 	 all Software and computer programs of such Assignor and all related licensing
rights, documentation, drawings, specifications and schematics and all intellectual property rights therein and all other proprietary information of such Assignor, including but not limited to Trade Secret Rights, customer lists and all recorded
data of any kind or nature, regardless of the medium or recording;
 

 
  
 
	 	 (vii)
 	 all Contracts, together with all Contract Rights arising thereunder;

 
  
 
	 	 (viii)
 	 all Copyrights;
 

 
  
 
	 	 (ix)
 	 all Deposit Accounts and all other demand, deposit, time, savings, cash management,
passbook and similar accounts maintained by such Assignor with any Person and all monies, securities, Instruments and other investments deposited or required to be deposited in any of the foregoing (in each case, excluding Exempted Deposit
Accounts);
 

 
  
 
	 	 (x)
 	 all Documents;
 

 
  
 
	 	 (xi)
 	 all Equipment;
 

 
  
 
	 	 (xii)
 	 all General Intangibles;
 

 
  
 
	 	 (xiii)
 	 all Goods;
 

 
  
 
	 	 (xiv)
 	 all Instruments;
 

 
  
 
	 	 (xv)
 	 all Inventory;
 

 
  
 
	 	 (xvi)
 	 all Investment Property;
 

 
  
 
	 	 (xvii)
 	 all Letter-of-Credit Rights (whether or not the respective letter of credit is
evidenced by a writing);
 

 
  
 
	 	 (xviii)
 	 all Marks and any renewals thereof, the goodwill of the business of such Assignor
symbolized by the Marks and all causes of action arising prior to or after the date hereof for infringement of any of the Marks or unfair competition regarding the same;
 

 
  
 
	 	 (xix)
 	 all Patents, together with all causes of action arising prior to or after the date
hereof for infringement of any of the Patents or unfair competition regarding the same;
 

 
  
 
	 	 (xx)
 	 all Permits;
 

 
  
 
	 	 (xxi)
 	 all Supporting Obligations; and
 

 
  
 
	 	 (xxii)
 	 all Proceeds and products of any and all of the foregoing (all of the above, the
“Collateral”);
 

 
  
 provided that (x) no Voting Equity Interests (which shall include, for this purpose,
the Convertible Preferred Equity Certificates issued by Aleris Luxembourg S.à.r.l.) of any Foreign Corporation which represents more than 65% of the total combined voting power of all classes of Voting Equity Interests of the respective Foreign
Corporation (with all Voting Equity Interests of the respective Foreign Corporation in excess of said 65% limit being herein called “Excess Foreign
Corporation Equity Interests”) shall secure any direct Obligations of any U.S. Borrower (or guarantees of such Obligations by the respective Assignor) and
such Excess Foreign Corporation Equity Interests shall secure Obligations of the respective Assignor only as a guarantor of the Obligations of the Canadian Borrowers and their Subsidiaries and the European Borrower and its Subsidiaries, and (y) each
Assignor shall be required to pledge hereunder 100% of the Non-Voting Equity Interests of each Foreign Corporation at any time and from time to time acquired by such Assignor, which Non-Voting Equity Interests shall not be subject to the limitations
described in preceding clause (x).
  
 (b) Notwithstanding anything herein to the contrary, in no event shall the Collateral include and no Assignor shall be
deemed to have granted a security interest in, (x) Excluded Equipment or (y) any of its right, title or interest in any license, contract or agreement to which such Assignor is a party, to the extent, but only to the extent (and only for so
long as) that such license, contract or agreement or applicable law prohibits the assignment of, or granting of a security interest in, such license, contract or agreement and such prohibitions are not rendered invalid by Section 9-406 or Section
9-408 of the UCC, it being understood and agreed, however, any such excluded license, contract or agreement shall otherwise be subject to the security interests created by this Agreement (and shall become “Collateral” for all purposes of
this Agreement) upon the receipt by such Assignor of any necessary approvals or waivers permitting the assignment thereof or the granting of a security interest therein.
  
 (c) The security interest of the Collateral Agent under this Agreement extends to all Collateral which any Assignor may acquire, or with respect to which any Assignor may obtain
rights, at any time during the term of this Agreement.
  
 (d) Notwithstanding anything to the contrary contained in this Section 1.1 or elsewhere in this Agreement, each Assignor
and the Collateral Agent (on behalf of the Secured Creditors) acknowledges and agrees that:
  
 (x) the security interest granted pursuant to this Agreement (including pursuant to this Section 1.1) to the Collateral
Agent for the benefit of the Secured Creditors (i) in the ABL Priority Collateral, shall be a First Priority Lien and (ii) in the Term Priority Collateral, shall be a Second Priority Lien, fully junior, subordinated and subject to the security
interest granted to the Term Collateral Agent for the benefit of the Term Creditors in the Term Priority Collateral on the terms and conditions set forth in the Term Credit Documents and the Intercreditor Agreement and all other rights and benefits
afforded hereunder to the Secured Creditors with respect to the Term Priority Collateral are expressly subject to the terms and conditions of the Intercreditor Agreement; and
  
 (y) the Term Secured Parties’ security interests in the Collateral constitute security interests separate and apart (and of a different class and claim) from the Secured
Creditors’ security interests in the Collateral.
  
 (e) NOTWITHSTANDING ANYTHING HEREIN TO THE CONTRARY, THE LIENS AND SECURITY INTERESTS GRANTED TO THE ABL COLLATERAL
AGENT PURSUANT TO THIS AGREEMENT IN ANY TERM PRIORITY COLLATERAL AND THE EXERCISE OF ANY RIGHT OR REMEDY BY THE ABL COLLATERAL AGENT WITH RESPECT TO ANY TERM PRIORITY COLLATERAL HEREUNDER ARE SUBJECT TO THE PROVISIONS OF THE AMENDED AND RESTATED
INTERCREDITOR AGREEMENT, DATED AS OF AUGUST 1, 2006 AND AMENDED AND RESTATED AS OF DECEMBER 19, 2006 (AS AMENDED, RESTATED, SUPPLEMENTED OR OTHERWISE MODIFIED FROM TIME TO TIME, THE “INTERCREDITOR AGREEMENT”), AMONG AURORA ACQUISITION MERGER SUB, INC., ALERIS
INTERNATIONAL, INC., A DELAWARE CORPORATION (THE “COMPANY”),
THE OTHER GRANTORS FROM TIME TO TIME PARTY THERETO, DEUTSCHE BANK AG NEW YORK BRANCH, (“DBNY”) AS ABL ADMINISTRATIVE AGENT AND COLLATERAL AGENT, DBNY, AS TERM ADMINISTRATIVE AGENT AND COLLATERAL AGENT, AND CERTAIN OTHER PERSONS PARTY OR THAT MAY BECOME PARTY
THERETO FROM TIME TO TIME. IN THE EVENT OF ANY CONFLICT BETWEEN THE TERMS OF THE INTERCREDITOR AGREEMENT AND THIS AGREEMENT, THE TERMS OF THE INTERCREDITOR AGREEMENT SHALL GOVERN AND CONTROL.
  
 1.2. Power of Attorney. Each Assignor hereby constitutes and appoints the Collateral Agent
its true and lawful attorney, irrevocably, with full power after the occurrence of and during the continuance of an Event of Default (in the name of such Assignor or otherwise) to act, require, demand, receive, compound and give acquittance for any
and all moneys and claims for moneys due or to become due to such Assignor under or arising out of the Collateral, to endorse any checks or other instruments or orders in connection therewith and to file any claims or take any action or institute
any proceedings which the Collateral Agent may deem to be necessary or advisable to protect the interests of the Secured Creditors, which appointment as attorney is coupled with an interest.
  
 ARTICLE II
  
 GENERAL REPRESENTATIONS, WARRANTIESAND
COVENANTS
  
 Each Assignor represents, warrants and covenants, which
representations, warranties and covenants shall survive execution and delivery of this Agreement, as follows:
  
 2.1. Necessary Filings. All filings, registrations, recordings and other actions necessary or appropriate to create, preserve and perfect the security interest granted by such Assignor to the
Collateral Agent hereby in respect of the Collateral have been accomplished, in each case, within the time frames required by this Agreement, and the security interest granted to the Collateral Agent pursuant to this Agreement in and to the
Collateral creates a valid and, together with all such filings, registrations, recordings and other actions, a perfected security interest therein prior to the rights of all other Persons therein and subject to no other Liens (other than Permitted
Liens) and is entitled to all the rights, priorities and benefits afforded by the Uniform Commercial Code or other relevant law as enacted in any relevant jurisdiction to perfected security interests, in each case to the extent that the Collateral
consists of the type of property in which a security interest may be perfected by possession or control (within the meaning of the UCC as in effect on the Restatement Effective Date in the State of New York), by filing a financing statement under
the Uniform Commercial Code as enacted in any relevant jurisdiction or by a filing of a Grant of Security Interest in the respective form attached hereto in the United States Patent and Trademark Office or in the United States Copyright Office. Upon
the actions taken under this Section 2.1, such security interest will be prior to all other Liens of all other Persons (other than Liens permitted pursuant to Sections 10.01(i), (ii) and (iii) of the Credit Agreement), and enforceable as such as
against all other Persons.
  
 2.2. No Liens. Such Assignor
is, and as to all Collateral acquired by it from time to time after the Restatement Effective Date such Assignor will be, the owner of all Collateral free from any Lien or other right, title or interest of any Person (other than Permitted Liens),
and such Assignor shall defend the Collateral against all claims and demands of all Persons at any time claiming the same or any interest therein adverse to the interests of the Collateral Agent.
  
 2.3. Other Financing Statements. As of the Restatement Effective Date, there is no financing
statement (or similar statement or instrument of registration under the law of any jurisdiction) covering or purporting to cover any interest of any kind in the Collateral (other than financing statements filed in respect of Permitted Liens), and so
long as the Termination Date has not occurred, such Assignor will not execute or authorize to be filed in any public office any financing statement (or similar statement or instrument of registration under the law of any jurisdiction) or statements
relating to the Collateral, except financing statements filed or to be filed in respect of and covering the security interests granted hereby by such Assignor or in connection with Permitted Liens.
  
 2.4. Chief Executive Office, Location of Inventory and Included Equipment. On the
Restatement Effective Date, and during the four calendar month period preceding this Agreement, no Assignor has maintained its chief executive office or held Inventory and Equipment in Alabama, Arizona, Florida or Mississippi other than as provided
in Annex A hereto.
  
 2.5. Legal Names; Type of Organization (and Whether a Registered Organization and/or a Transmitting Utility);
Jurisdiction of Organization; Location; Organizational Identification Numbers; Changes Thereto; etc. The exact legal name of each Assignor, the type of
organization of such Assignor, whether or not such Assignor is a Registered Organization, the jurisdiction of organization of such Assignor, such Assignor’s Location, the organizational identification number (if any) of such Assignor, and
whether or not such Assignor is a Transmitting Utility, is listed on Annex B hereto for such Assignor. Such Assignor shall not change its legal name, its type of organization or its organizational identification number (if any) from that used on
Annex B hereto, except that any such changes shall be permitted (so long as not in violation of the applicable requirements of the Secured Debt Agreements and so long as same do not involve such Assignor changing its jurisdiction of organization or
Location from the United States or a State thereof to a jurisdiction of organization or Location, as the case may be, outside the United States or a State thereof) if (i) it shall have given to the Collateral Agent not less than 15 days’ prior
written notice of each change to the information listed on Annex B (as adjusted for any subsequent changes thereto previously made in accordance with this sentence), together with a supplement to Annex B which shall correct all information contained
therein for such Assignor, and (ii) in connection with the respective such change or changes, it shall have taken all action reasonably requested by the Collateral Agent to maintain the security interests of the Collateral Agent in the Collateral
intended to be granted hereby at all times fully perfected and in full force and effect. In addition, to the extent that such Assignor does not have an organizational identification number on the Restatement Effective Date and later obtains one,
such Assignor shall promptly thereafter notify the Collateral Agent of such organizational identification number and shall take all actions reasonably satisfactory to the Collateral Agent to the extent necessary to maintain the security interest of
the Collateral Agent in the Collateral intended to be granted hereby fully perfected and in full force and effect.
  
 2.6. Certain Significant Transactions. During the one year period preceding the Restatement Effective Date, no Person shall have merged or consolidated with or into any Assignor, and no Person shall have liquidated
into, or transferred all or substantially all of its assets to, any Assignor, in each case except as described in Annex C hereto. With respect to any transactions so described in Annex C hereto, the respective Assignor shall have furnished such
information with respect to the Person (and the assets of the Person and locations thereof) which merged with or into or consolidated with such Assignor, or was liquidated into or transferred all or substantially all of its assets to such Assignor,
and shall have furnished to the Collateral Agent such UCC lien searches as may have been requested with respect to such Person and its assets, to establish that no security interest (excluding Permitted Liens) continues perfected on the Restatement
Effective Date with respect to any Person described above (or the assets transferred to the respective Assignor by such Person), including without limitation pursuant to Section 9-316(a)(3) of the UCC.
  
 2.7. As-Extracted Collateral; Timber-to-be-Cut. On the Restatement Effective Date, such
Assignor does not own, or expect to acquire, any property which constitutes, or would constitute, As-Extracted Collateral or Timber-to-be-Cut. If at any time after the date of this Agreement such Assignor owns, acquires or obtains rights to any
As-Extracted Collateral or Timber-to-be-Cut, such Assignor shall furnish the Collateral Agent with prompt written notice thereof (which notice shall describe in reasonable detail the As-Extracted Collateral or Timber-to-be-Cut and the locations
thereof) and shall take all actions as may be deemed reasonably necessary or desirable by the Collateral Agent to perfect the security interest of the Collateral Agent therein.
  
 2.8. Collateral in the Possession of a Bailee. Subject to the provisions of the
Intercreditor Agreement, if any Inventory or other Goods are at any time in the possession of a bailee, (other than pursuant to tolling arrangements entered into in the ordinary course of business) such Assignor shall promptly notify the Collateral
Agent thereof and, if requested by the Collateral Agent, shall use its reasonable best efforts to promptly obtain an acknowledgment from such bailee, in form and substance reasonably satisfactory to the Collateral Agent, that the bailee holds such
Collateral for the benefit of the Collateral Agent and shall act upon the instructions of the Collateral Agent, without the further consent of such Assignor. The Collateral Agent agrees with such Assignor that the Collateral Agent shall not give any
such instructions unless a Noticed Event of Default has occurred and is continuing or would occur after taking into account any action by the respective Assignor with respect to any such bailee.
  
 2.9. Recourse. This Agreement is made with full recourse to each Assignor and pursuant to
and upon all the warranties, representations, covenants and agreements on the part of such Assignor contained herein, in the other Secured Debt Agreements and otherwise in writing in connection herewith or therewith.
  
 ARTICLE III
  
 SPECIAL PROVISIONS CONCERNING ACCOUNTS; CONTRACT RIGHTS;
INSTRUMENTS; CHATTEL PAPER AND CERTAIN OTHER COLLATERAL
  
 3.1. Additional Representations and Warranties. As of the time when each of its Accounts arises, each Assignor shall be deemed to have represented and warranted that each such Account, and all records, papers and documents
relating thereto (if any) are genuine and what they purport to be, and that all papers and documents (if any) relating thereto (i) will, to the knowledge of such Assignor, represent the genuine, legal, valid and binding obligation of the account
debtor evidencing indebtedness unpaid and owed by the respective account debtor arising out of the performance of labor or services or the sale or lease and delivery of the merchandise listed therein, or both, (ii) will be the only original writings
evidencing and embodying such obligation of the account debtor named therein (other than copies created for general accounting purposes), (iii) will, to the knowledge of such Assignor, evidence true and valid obligations, enforceable in accordance
with their respective terms, and (iv) will be in compliance and will conform in all material respects with all applicable federal, state and local laws and applicable laws of any relevant foreign jurisdiction.
  
 3.2. Maintenance of Records. Each Assignor will keep and maintain at its own cost and
expense accurate records of its Accounts and Contracts, including, but not limited to, originals of all documentation (including each Contract) with respect thereto, records of all payments received, all credits granted thereon, all merchandise
returned and all other dealings therewith, and such Assignor will make the same available on such Assignor’s premises to the Collateral Agent for inspection, at such Assignor’s own cost and expense, at any and all reasonable times upon
prior notice to such Assignor and otherwise in accordance with the Credit Agreement. Upon the occurrence and during the continuance of a Noticed Event of Default and at the request of the Collateral Agent, such Assignor shall, at its own cost and
expense, deliver all tangible evidence of its Accounts and Contract Rights (including, without limitation, all documents evidencing the Accounts and all Contracts) and such books and records to the Collateral Agent or to its representatives (copies
of which evidence and books and records may be retained by such Assignor). Upon the occurrence and during the continuance of a Noticed Event of Default and if the Collateral Agent so directs, such Assignor shall legend, in form and manner
satisfactory to the Collateral Agent, the Accounts and the Contracts, as well as books, records and documents (if any) of such Assignor evidencing or pertaining to such Accounts and Contracts with an appropriate reference to the fact that such
Accounts and Contracts have been assigned to the Collateral Agent and that the Collateral Agent has a security interest therein.
  
 3.3. Direction to Account Debtors; Contracting Parties; etc. Upon the occurrence and during the continuance of a Noticed Event of Default, if the Collateral Agent so directs, subject to the provisions of the Intercreditor Agreement, any
Assignor, such Assignor agrees (x) to cause all payments on account of the Accounts and Contracts to be made directly to the Cash Collateral Account, (y) that the Collateral Agent may, at its option, directly notify the obligors with respect to any
Accounts and/or under any Contracts to make payments with respect thereto as provided in the preceding clause (x), and (z) that the Collateral Agent may enforce collection of any such Accounts and Contracts and may adjust, settle or compromise the
amount of payment thereof, in the same manner and to the same extent as such Assignor. Without notice to or assent by any Assignor, the Collateral Agent may, upon the occurrence and during the continuance of a Noticed Event of Default, subject to
the provisions of the Intercreditor Agreement, apply any or all amounts then in, or thereafter deposited in, the Cash Collateral Account toward the payment of the Obligations in the manner provided in Section 7.4 of this Agreement. The reasonable
costs and expenses of collection (including reasonable attorneys’ fees), whether incurred by an Assignor or the Collateral Agent, shall be borne by the relevant Assignor. The Collateral Agent shall deliver a copy of each notice referred to in
the preceding clause (y) to the relevant Assignor, provided that (x) the
failure by the Collateral Agent to so notify such Assignor shall not affect the effectiveness of such notice or the other rights of the Collateral Agent created by this Section 3.3 and (y) no such notice shall be required if an Event of Default of
the type described in Section 11.05 of the Credit Agreement has occurred and is continuing.
  
 3.4. Modification of Terms; etc. Except in accordance with such Assignor’s ordinary course of business and consistent with reasonable business judgment or as permitted by Section 3.5, no Assignor
shall rescind or cancel any indebtedness evidenced by any Account or under any Contract, or modify any material term thereof or make any material adjustment with respect thereto, or extend or renew the same, or compromise or settle any material
dispute, claim, suit or legal proceeding relating thereto, or sell any Account or Contract, or interest therein, without the prior written consent of the Collateral Agent. No Assignor will do anything to impair the rights of the Collateral Agent in
the Accounts or Contracts.
  
 3.5. Collection. Each Assignor
shall endeavor in accordance with reasonable business practices to cause to be collected from the account debtor named in each of its Accounts or obligor under any Contract, as and when due (including, without limitation, amounts which are
delinquent, such amounts to be collected in accordance with generally accepted lawful collection procedures) any and all amounts owing under or on account of such Account or Contract, and apply forthwith upon receipt thereof all such amounts as are
so collected to the outstanding balance of such Account or under such Contract. Except as otherwise directed by the Collateral Agent after the occurrence and during the continuation of an Event of Default, any Assignor may allow in the ordinary
course of business as adjustments to amounts owing under its Accounts and Contracts (i) an extension or renewal of the time or times of payment, or settlement for less than the total unpaid balance, which such Assignor finds appropriate in
accordance with reasonable business judgment and (ii) a refund or credit due as a result of returned or damaged merchandise or improperly performed services or for other reasons which such Assignor finds appropriate in accordance with reasonable
business judgment. The reasonable costs and expenses (including, without limitation, reasonable attorneys’ fees) of collection, whether incurred by an Assignor or the Collateral Agent, shall be borne by the relevant Assignor.
  
 3.6. Instruments. Subject to the terms of the Intercreditor Agreement, if any Assignor owns
or acquires any Instrument in excess of $1,000,000 constituting Collateral (other than (x) checks and other payment instruments received and collected in the ordinary course of business and (y) any Instrument subject to pledge pursuant to the
U.S. Pledge Agreement), such Assignor will within 20 Business Days notify the Collateral Agent thereof, and upon request by the Collateral Agent will promptly deliver such Instrument to the Collateral Agent appropriately endorsed to the order of the
Collateral Agent.
  
 3.7. Assignors Remain Liable Under Accounts. Anything herein to the contrary notwithstanding, the Assignors shall remain liable under each of the Accounts to observe and perform all of the conditions and obligations to be
observed and performed by them thereunder, all in accordance with the terms of any agreement giving rise to such Accounts. Neither the Collateral Agent nor any other Secured Creditor shall have any obligation or liability under any Account (or any
agreement giving rise thereto) by reason of or arising out of this Agreement or the receipt by the Collateral Agent or any other Secured Creditor of any payment relating to such Account pursuant hereto, nor shall the Collateral Agent or any other
Secured Creditor be obligated in any manner to perform any of the obligations of any Assignor under or pursuant to any Account (or any agreement giving rise thereto), to make any payment, to make any inquiry as to the nature or the sufficiency of
any payment received by them or as to the sufficiency of any performance by any party under any Account (or any agreement giving rise thereto), to present or file any claim, to take any action to enforce any performance or to collect the payment of
any amounts which may have been assigned to them or to which they may be entitled at any time or times.
  

3.8. Assignors Remain Liable Under Contracts. Anything herein to the contrary notwithstanding, the Assignors shall remain liable under each of the Contracts to observe and perform all of the conditions and obligations to
be observed and performed by them thereunder, all in accordance with and pursuant to the terms and provisions of each Contract. Neither the Collateral Agent nor any other Secured Creditor shall have any obligation or liability under any Contract by
reason of or arising out of this Agreement or the receipt by the Collateral Agent or any other Secured Creditor of any payment relating to such Contract pursuant hereto, nor shall the Collateral Agent or any other Secured Creditor be obligated in
any manner to perform any of the obligations of any Assignor under or pursuant to any Contract, to make any payment, to make any inquiry as to the nature or the sufficiency of any performance by any party under any Contract, to present or file any
claim, to take any action to enforce any performance or to collect the payment of any amounts which may have been assigned to them or to which they may be entitled at any time or times.
  
 3.9. Deposit Accounts; Etc.  (a) Annex D hereto accurately sets forth, as of the Effective Date, for each Assignor, each
Deposit Account maintained by such Assignor (including a description thereof and the respective account number), the name of the respective bank with which such Deposit Account is maintained, and the jurisdiction of the respective bank with respect
to such Deposit Account. For each Deposit Account (other than (i) the Cash Collateral Account or any other Deposit Account maintained with the Collateral Agent, (ii) Exempted Deposit Accounts and (iii) Exempted Disbursement Accounts) the respective
Assignor shall, subject to the provisions of the Intercreditor Agreement and Section 3.14 hereof, cause the bank with which the Deposit Account is maintained to execute and deliver to the Collateral Agent, within 45 days after the Restatement
Effective Date or, if later, at the time of the establishment of the respective Deposit Account, a “control agreement” in substantially the form of Annex E hereto (appropriately completed), with such changes thereto as may be reasonably
acceptable to the Collateral Agent, or such other form as may be reasonably acceptable to the Collateral Agent. If any bank with which a Deposit Account which is required to be subject to a “control agreement” hereunder is maintained
refuses to, or does not, enter into such a “control agreement”, then the respective Assignor shall promptly (and in any event within 45 days after the date of this Agreement or, if later, 30 days (or such longer period as may be agreed
by the Administrative Agent in its sole discretion) after the establishment of such account) close the respective Deposit Account and transfer all balances therein to the Cash Collateral Account or another Deposit Account meeting the requirements of
this Section 3.9. If any bank with which a Deposit Account which is required to be subject to a “control agreement” hereunder is maintained refuses to subordinate all its claims with respect to such Deposit Account to the Collateral
Agent’s security interest therein on terms reasonably satisfactory to the Collateral Agent, then the Collateral Agent, at its option, may (x) require that such Deposit Account be terminated in accordance with the immediately preceding sentence
or (y) agree to a “control agreement” without such subordination, provided that in such event the Collateral Agent may at any time, at its option, subsequently require that such Deposit Account be terminated (within 45 days after notice from the
Collateral Agent) in accordance with the requirements of the immediately preceding sentence.
  
 (b) After the date of this Agreement, no Assignor shall establish any new demand, time, savings, passbook or similar
account, except for Deposit Accounts established and maintained with banks and meeting the requirements of preceding clause (a). At the time any such Deposit Account is established, the appropriate “control agreement” shall be entered
into in accordance with the requirements of preceding clause (a) and the respective Assignor shall furnish to the Collateral Agent a supplement to Annex D hereto containing the relevant information with respect to the respective Deposit Account and
the bank with which same is established.
  
 3.10. Letter-of-Credit Rights.
If any Assignor is at any time a beneficiary under a letter of credit with a stated amount of $5,000,000 or more, such Assignor shall promptly notify the Collateral Agent thereof and, at the request of the Collateral Agent, such Assignor shall,
pursuant to an agreement in form and substance reasonably satisfactory to the Collateral Agent, use its reasonable best efforts to (i) arrange for the issuer and any confirmer of such letter of credit to consent to an assignment to the Collateral
Agent of the proceeds of any drawing under such letter of credit or (ii) arrange for the Collateral Agent, subject to the provisions of the Intercreditor Agreement, to become the transferee beneficiary of such letter of credit, with the Collateral
Agent agreeing, in each case, that the proceeds of any drawing under the letter of credit are to be applied as provided in this Agreement and the Intercreditor Agreement after the occurrence and during the continuance of a Noticed Event of
Default.
  
 3.11. Commercial Tort Claims.
All Commercial Tort Claims of each Assignor in existence on the date of this Agreement are described in Annex F hereto. If any Assignor shall at any time after the date of this Agreement acquire a Commercial Tort Claim in an amount (taking the
greater of the aggregate claimed damages thereunder or the reasonably estimated value thereof) of $1,000,000 or more, such Assignor shall promptly notify the Collateral Agent thereof in a writing signed by such Assignor and describing the details
thereof and shall grant to the Collateral Agent in such writing a security interest therein and in the proceeds thereof, all upon the terms of this Agreement and the Intercreditor Agreement, with such writing to be in form and substance reasonably
satisfactory to the Collateral Agent.
  
 3.12. Chattel Paper. Upon the
reasonable request of the Collateral Agent made at any time or from time to time, each Assignor shall promptly furnish to the Collateral Agent a list of all Electronic Chattel Paper held or owned by such Assignor. Furthermore, if requested by the
Collateral Agent, each Assignor shall promptly take all actions which are reasonably practicable so that the Collateral Agent, subject to the provisions of the Intercreditor Agreement, has “control” of all Electronic Chattel Paper in
accordance with the requirements of Section 9-105 of the UCC. Each Assignor will promptly (and in any event within 10 days) following any request by the Collateral Agent during the occurrence of any Noticed Event of Default, subject to the
provisions of the Intercreditor Agreement, deliver all of its Tangible Chattel Paper to the Collateral Agent.
  
 3.13. Further Actions. Each Assignor will, at its own expense, make, execute, endorse, acknowledge, file and/or deliver to the Collateral Agent from time to time such vouchers, invoices, schedules,
confirmatory assignments, conveyances, financing statements, transfer endorsements, certificates, reports and other assurances or instruments and take such further steps, including any and all actions as may be necessary or required under the
Federal Assignment of Claims Act, relating to its Accounts, Contracts, Instruments and other property or rights covered by the security interest hereby granted, as the Collateral Agent may reasonably require.
  
 3.14. Overriding Provisions with respect to Term Priority Collateral. Notwithstanding
anything to the contrary contained above in this Article III, or elsewhere in this Agreement or any other U.S. Security Agreement, to the extent the provisions of this Agreement (or any other Security Documents) require the delivery of, or control
over, Term Priority Collateral to be granted to the Collateral Agent at any time prior to the Term Credit Documents Obligations Termination Date, then delivery of such Term Priority Collateral (or control with respect thereto) shall instead be
granted to the Term Collateral Agent, to be held in accordance with the Term Credit Documents and the Intercreditor Agreement. Furthermore, at all times prior to the Term Credit Document Obligations Termination Date, the Collateral Agent is
authorized by the parties hereto to effect transfers of Term Priority Collateral at any time in its possession (and any “control” or similar agreements with respect to Term Priority Collateral) to the Term Collateral Agent.

 
 ARTICLE IV
  

SPECIAL PROVISIONS CONCERNING TRADEMARKS AND DOMAIN
NAMES
  
 4.1. Additional Representations and Warranties. Each Assignor represents and warrants that it is the true and lawful owner of the registered Marks and Domain Names listed in Annex G hereto for such Assignor and that said
listed Marks and Domain Names include all trademark registrations and applications for registration of marks in the United States Patent and Trademark Office and all Domain Names that such Assignor owns in connection with its business as of the
Effective Date. Except as could not, either individually or in the aggregate, reasonably be expected to have a Material Adverse Effect each Assignor represents and warrants that it owns, is licensed to use or otherwise has the right to use, all
trademarks, service marks, trade names, trade dresses and other business and source identifiers that it uses. Each Assignor further warrants that it has no knowledge of any third party claim received by it that any aspect of such Assignor’s
present or contemplated business operations infringes or will infringe any trademark, service mark or trade name of any other Person other than as could not, either individually or in the aggregate, reasonably be expected to have a Material Adverse
Effect. Each Assignor represents and warrants that it is the true and lawful owner of all U.S. trademark registrations and applications and Domain Name registrations listed in Annex G hereto and that said registrations are valid, subsisting, have
not been canceled and that such Assignor is not aware of any third-party claim that any of said registrations is invalid or unenforceable, and is not aware that there is any reason that any of said registrations is invalid or unenforceable, and is
not aware that there is any reason that any of said applications will not mature into registrations. Each Assignor hereby grants to the Collateral Agent an absolute power of attorney to sign, upon the occurrence and during the continuance of a
Noticed Event of Default, any document which may be required by the United States Patent and Trademark Office or similar registrar in order to effect an absolute assignment of all right, title and interest in each Mark and/or Domain Name, and record
the same.
  
 4.2. Licenses and Assignments.
Except as otherwise permitted by the Secured Debt Agreements, each Assignor hereby agrees not to divest itself of any right under any Mark or Domain Name absent prior written approval of the Collateral Agent.
  
 4.3. Infringements. Each Assignor agrees, promptly upon learning thereof, to notify the
Collateral Agent in writing of the name and address of, and to furnish such pertinent information that may be available with respect to, any party who such Assignor believes is, or may be, infringing or diluting or otherwise violating any of such
Assignor’s rights in and to any Mark in any manner that could reasonably be expected to have a Material Adverse Effect, or with respect to any party claiming that such Assignor’s use of any Mark material to such Assignor’s business
violates in any material respect any property right of that party. Each Assignor further agrees to take appropriate actions in accordance with reasonable business practices against any Person infringing any Mark or Domain Name in any manner that
could reasonably be expected to have a Material Adverse Effect.
  
 4.4. Preservation of Marks and Domain Names. Each Assignor agrees to take all actions as are reasonably necessary to preserve the protection and registration of the Marks as trademarks or service marks under the laws of
the United States (other than any such Marks which are no longer used or useful in its business or operations).
  
 4.5. Maintenance of Registration. Each Assignor shall, at its own expense, diligently process all documents required in accordance with reasonable business practices to maintain all Mark and/or Domain Name
registrations, including but not limited to affidavits of use and applications for renewals of registration in the United States Patent and Trademark Office for all of its material registered Marks, and shall pay all fees and disbursements in
connection therewith and shall not abandon any such filing of affidavit of use or any such application of renewal prior to the exhaustion of all administrative and judicial remedies without prior written consent of the Collateral Agent (other than
with respect to registrations and applications deemed by such Assignor in its reasonable business judgment to be no longer prudent to pursue).
  
 4.6. Future Registered Marks and Domain Names. If any Mark registration is issued hereafter
to any Assignor as a result of any application now or hereafter pending before the United States Patent and Trademark Office or any Domain Name is registered by Assignor, within 30 days of issuance, such Assignor shall deliver to the Collateral
Agent a notification concerning the issuance of the registration, and a grant of a security interest in such Mark and/or Domain Name, to the Collateral Agent and at the expense of such Assignor, confirming the grant of a security interest in such
Mark and/or Domain Name to the Collateral Agent hereunder, the form of such security to be substantially in the form of Annex J hereto or in such other form as may be reasonably satisfactory to the Collateral Agent.
  
 4.7. Remedies. Subject to the terms of the Intercreditor Agreement, if a Noticed Event of
Default shall occur and be continuing, the Collateral Agent may, by written notice to the relevant Assignor, take any or all of the following actions: (i) declare the entire right, title and interest of such Assignor in and to each of the Marks and
Domain Names, together with all trademark rights and rights of protection to the same, vested in the Collateral Agent for the benefit of the Secured Creditors, in which event such rights, title and interest shall immediately vest, in the Collateral
Agent for the benefit of the Secured Creditors, and the Collateral Agent shall be entitled to exercise the power of attorney referred to in Section 4.1 hereof to execute, cause to be acknowledged and notarized and record said absolute assignment
with the applicable agency or registrar; (ii) take and use or sell the Marks or Domain Names and the goodwill of such Assignor’s business symbolized by the Marks or Domain Names and the right to carry on the business and use the assets of such
Assignor in connection with which the Marks or Domain Names have been used; and (iii) direct such Assignor to refrain, in which event such Assignor shall refrain, from using the Marks or Domain Names in any manner whatsoever, directly or indirectly,
and such Assignor shall execute such further documents that the Collateral Agent may reasonably request to further confirm this and to transfer ownership of the Marks or Domain Names and registrations and any pending trademark applications in the
United States Patent and Trademark Office or applicable Domain Name registrar to the Collateral Agent.
  

ARTICLE V
  
 SPECIAL PROVISIONS CONCERNING
 PATENTS, COPYRIGHTS AND TRADE SECRETS
  
 5.1. Additional Representations and Warranties. Each Assignor represents and warrants that it is the true and lawful owner of all rights in (i) all Trade Secret Rights, (ii) the Patents listed in Annex H hereto for such
Assignor and that said Patents include all the United States patents and applications for United States patents that such Assignor owns as of the Restatement Effective Date and (iii) the Copyrights listed in Annex I hereto for such Assignor and that
said Copyrights include all the United States copyrights registered with the United States Copyright Office and applications for United States copyrights that such Assignor owns as of the Restatement Effective Date. Each Assignor further warrants
that it has no knowledge of any third party claim that any aspect of such Assignor’s present or contemplated business operations infringes or will infringe any patent or copyright of any other Person or such Assignor has misappropriated any
trade secret or proprietary information which, either individually or in the aggregate, could reasonably be expected to have a Material Adverse Effect. Each Assignor hereby grants to the Collateral Agent an absolute power of attorney to sign, upon
the occurrence and during the continuance of any Noticed Event of Default, any document which may be required by the United States Patent and Trademark Office or the United States Copyright Office in order to effect an absolute assignment of all
right, title and interest in each Patent or Copyright, and to record the same.
  
 5.2. Licenses and Assignments.
Except as otherwise permitted by the Secured Debt Agreements, each Assignor hereby agrees not to divest itself of any right under any Patent or Copyright absent prior written approval of the Collateral Agent.
  
 5.3. Infringements. Each Assignor agrees, promptly upon learning thereof, to furnish the
Collateral Agent in writing with all pertinent information available to such Assignor with respect to any infringement, contributing infringement or active inducement to infringe or other violation of such Assignor’s rights in any Patent or
Copyright or to any claim that the practice by any Assignor of any patent or use of any copyrighted work violates any property right of a third party, or with respect to any misappropriation of any Trade Secret Right or any claim that practice of
any trade secret violates any property right of a third party, in each case, in any manner which, either individually or in the aggregate, could reasonably be expected to have a Material Adverse Effect. Each Assignor further agrees, absent direction
of the Collateral Agent to the contrary, to take appropriate action, in accordance with its reasonable business judgment against, any Person infringing any Patent or Copyright or any Person misappropriating any Trade Secret Right, in each case to
the extent that such infringement or misappropriation, either individually or in the aggregate, could reasonably be expected to have a Material Adverse Effect.
  
 5.4. Maintenance of Patents or Copyrights. At its own expense, each Assignor shall make
timely payment of all post-issuance fees required to maintain in force its rights under each Patent or Copyright, absent prior written consent of the Collateral Agent (other than any such Patents or Copyrights which are no longer used or are deemed
by such Assignor in its reasonable business judgment to no longer be useful in its business or operations).
  
 5.5. Prosecution of Patent or Copyright Applications. At its own expense, each Assignor shall diligently prosecute all material applications for (i) United States Patents listed in Annex H hereto and (ii) Copyrights listed on
Annex I hereto, in each case for such Assignor and shall not abandon any such application prior to exhaustion of all administrative and judicial remedies (other than applications that are deemed by such Assignor in its reasonable business judgment
to no longer be necessary in the conduct of the Assignor’s business), absent written consent of the Collateral Agent.
  
 5.6. Other Patents and Copyrights. Within 30 days of the acquisition or issuance of a United States Patent, registration of a Copyright, or acquisition of a registered Copyright, or of filing of an application
for a United States Patent or Copyright, the relevant Assignor shall deliver to the Collateral Agent notification describing the acquisition, issuance, filing or registration of said Copyright or Patent, as the case may be, with a grant of a
security interest as to such Patent or Copyright, as the case may be, to the Collateral Agent and at the expense of such Assignor, confirming the grant of a security interest, the form of such grant of a security interest to be substantially in the
form of Annex K or Annex L hereto, as appropriate, or in such other form as may be reasonably satisfactory to the Collateral Agent.
  
 5.7. Remedies. If an
Event of Default shall occur and be continuing, the Collateral Agent may, subject to the provisions of the Intercreditor Agreement, by written notice to the relevant Assignor, take any or all of the following actions: (i) declare the entire right,
title, and interest of such Assignor in each of the Patents and Copyrights vested in the Collateral Agent for the benefit of the Secured Creditors, in which event such right, title, and interest shall immediately vest in the Collateral Agent for the
benefit of the Secured Creditors, in which case the Collateral Agent shall be entitled to exercise the power of attorney referred to in Section 5.1 hereof to execute, cause to be acknowledged and notarized and to record said absolute assignment with
the applicable agency; (ii) take and practice or sell the Patents and Copyrights; and (iii) direct such Assignor to refrain, in which event such Assignor shall refrain, from practicing the Patents and using the Copyrights directly or indirectly, and
such Assignor shall execute such further documents as the Collateral Agent may reasonably request further to confirm this and to transfer ownership of the Patents and Copyrights to the Collateral Agent for the benefit of the Secured
Creditors.
  
 ARTICLE VI
  
 PROVISIONS CONCERNING ALL COLLATERAL
  
 6.1. Protection of Collateral Agent’s Security. Except as otherwise permitted by the Secured Debt Agreements and the Intercreditor Agreement, each Assignor will do nothing to impair the rights of the Collateral Agent in the
Collateral. Each Assignor will at all times maintain insurance, at such Assignor’s own expense to the extent and in the manner provided in the Secured Debt Agreements. Except to the extent otherwise permitted to be retained by such Assignor or
applied by such Assignor pursuant to the terms of the Secured Debt Agreements, the Collateral Agent shall, subject to the provisions of the Intercreditor Agreement, at the time any proceeds of such insurance are distributed to the Secured Creditors,
apply such proceeds in accordance with Section 7.4 hereof. Each Assignor assumes all liability and responsibility in connection with the Collateral acquired by it and the liability of such Assignor to pay the Obligations shall in no way be affected
or diminished by reason of the fact that such Collateral may be lost, destroyed, stolen, damaged or for any reason whatsoever unavailable to such Assignor.
  
 6.2. Warehouse Receipts Non-Negotiable. To the extent practicable, each Assignor agrees that
if any warehouse receipt or receipt in the nature of a warehouse receipt is issued with respect to any of its Inventory, such Assignor shall request that such warehouse receipt or receipt in the nature thereof shall not be “negotiable”
(as such term is used in Section 7-104 of the Uniform Commercial Code as in effect in any relevant jurisdiction or under other relevant law).
  
 6.3. Additional Information. Each Assignor will, at its own expense, from time to time upon
the reasonable request of the Collateral Agent, promptly (and in any event within 30 days after its receipt of the respective request) furnish to the Collateral Agent such information with respect to the Collateral (including the identity of the
Collateral or such components thereof as may have been requested by the Collateral Agent, the value and location of such Collateral, etc.) as may be requested by the Collateral Agent. Without limiting the forgoing, each Assignor agrees that it shall
promptly (and in any event within 30 days after its receipt of the respective request) furnish to the Collateral Agent such updated Annexes hereto as may from time to time be reasonably requested by the Collateral Agent.
  
 6.4. Further Actions. Each Assignor will, at its own expense and upon the reasonable request
of the Collateral Agent, make, execute, endorse, acknowledge, file and/or deliver to the Collateral Agent from time to time such lists, descriptions and designations of its Collateral, warehouse receipts, receipts in the nature of warehouse
receipts, bills of lading, documents of title, vouchers, invoices, schedules, confirmatory assignments, conveyances, financing statements, transfer endorsements, certificates, reports and other assurances or instruments and take such further steps
relating to the Collateral and other property or rights covered by the security interest hereby granted, which the Collateral Agent deems reasonably appropriate or advisable to perfect, preserve or protect its security interest in the
Collateral.
  
 6.5. Financing Statements.
Subject to the terms of the Intercreditor Agreement, each Assignor agrees to execute and deliver to the Collateral Agent such financing statements, in form reasonably acceptable to the Collateral Agent, as the Collateral Agent may from time to time
reasonably request or as are reasonably necessary or desirable in the opinion of the Collateral Agent to establish and maintain a valid, enforceable, perfected security interest in the Collateral as provided herein and the other rights and security
contemplated hereby. Each Assignor will pay any applicable filing fees, recordation taxes and related expenses relating to its Collateral. Each Assignor hereby authorizes the Collateral Agent to file any such financing statements without the
signature of such Assignor where permitted by law (and such authorization includes describing the Collateral as “all assets” of such Assignor).
  
 ARTICLE VII
  
 REMEDIES UPON OCCURRENCE OF AN EVENT OF DEFAULT

 
 7.1. Remedies; Obtaining the Collateral Upon Default. Each Assignor agrees that, if any
Event of Default shall have occurred and be continuing, then and in every such case, the Collateral Agent, in addition to any rights now or hereafter existing under applicable law and under the other provisions of this Agreement, shall have all
rights as a secured creditor under any UCC, and such additional rights and remedies to which a secured creditor is entitled under the laws in effect in all relevant jurisdictions and, subject to the provisions of the Intercreditor Agreement,
may:
  
 (i) personally, or by agents or attorneys, immediately take possession of the Collateral or any part thereof, from such
Assignor or any other Person who then has possession of any part thereof with or without notice or process of law, and for that purpose may enter upon 
such Assignor’s premises where any of the Collateral is located and remove the same and use in connection with such removal any and all services,
supplies, aids and other facilities of such Assignor;
  
 (ii) subject to Section 3.3, instruct the obligor or obligors on any agreement, instrument or other obligation
(including, without limitation, the Accounts and the Contracts) constituting the Collateral to make any payment required by the terms of such agreement, instrument or other obligation directly to the Collateral Agent and may exercise any and all
remedies of such Assignor in respect of such Collateral;
  
 (iii) instruct all banks which have entered into a control agreement with the Collateral Agent to transfer all monies,
securities and instruments held by such depositary bank to the Cash Collateral Account;
  
 (iv) sell, assign or otherwise liquidate any or all of the Collateral or any part thereof in accordance with Section 7.2
hereof, or direct such Assignor to sell, assign or otherwise liquidate any or all of the Collateral or any part thereof, and, in each case, take possession of the proceeds of any such sale or liquidation;
  
 (v) take possession of the Collateral or any part thereof, by directing such Assignor in writing to deliver the same to the Collateral Agent at any reasonable place or places
designated by the Collateral Agent, in which event such Assignor shall at its own expense:
  
 (x) forthwith cause the same to be moved to the place or places so designated by the Collateral Agent and there
delivered to the Collateral Agent;
  
 (y) store and keep any Collateral so delivered to the Collateral Agent at such place or places pending further action
by the Collateral Agent as provided in Section 7.2 hereof; and
  
 (z) while the Collateral shall be so stored and kept, provide such security and maintenance services as shall be
reasonably necessary to protect the same and to preserve and maintain it in good condition;
  
 (vi) so long as the relevant Event of Default is a Noticed Event of Default, license or sublicense, whether on an
exclusive or nonexclusive basis, any Marks, Domain Names, Patents or Copyrights included in the Collateral for such term and on such conditions and in such manner as the Collateral Agent shall in its sole judgment determine;
  
 (vii) apply any monies constituting Collateral or proceeds thereof in accordance with the provisions of Section 7.4; and
  
 (viii) take any other action as specified in clauses (1) through (5), inclusive, of Section 9-607 of the UCC;
  
 it being understood that each Assignor’s obligation so to deliver the Collateral is of the essence of this Agreement and that, accordingly, upon application to a court of
equity having jurisdiction, the Collateral Agent shall be entitled to a decree requiring specific performance by such Assignor of said obligation. By accepting the benefits of this Agreement and each other Security Document, the Secured Creditors
expressly acknowledge and agree that this Agreement and each other Security Document may be enforced only by the action of the Collateral Agent acting upon the instructions of the Required Secured Creditors and that no other Secured Creditor shall
have any right individually to seek to enforce or to enforce this Agreement or to realize upon the security to be granted hereby, it being understood and agreed that such rights and remedies may be exercised by the Collateral Agent for the benefit
of the Secured Creditors upon the terms of this Agreement and the other Security Documents and subject to the terms of the Intercreditor Agreement.
  
 7.2. Remedies; Disposition of the Collateral. If any Event of Default shall have occurred
and be continuing, then any Collateral repossessed by the Collateral Agent under or pursuant to Section 7.1 hereof and any other Collateral whether or not so repossessed by the Collateral Agent, may, subject to the provisions of the Intercreditor
Agreement, be sold, assigned, leased or otherwise disposed of under one or more contracts or as an entirety, and without the necessity of gathering at the place of sale the property to be sold, and in general in such manner, at such time or times,
at such place or places and on such terms as the Collateral Agent may, in compliance with any mandatory requirements of applicable law, determine to be commercially reasonable. Any of such Collateral may be sold, leased or otherwise disposed of, in
the condition in which the same existed when taken by the Collateral Agent or after any overhaul or repair at the expense of the relevant Assignor which the Collateral Agent shall determine to be commercially reasonable. Any such sale, lease or
other disposition may be effected by means of a public disposition or private disposition, effected in accordance with the applicable requirements (in each case if and to the extent applicable) of Sections 9-610 through 9-613 of the UCC and/or such
other mandatory requirements of applicable law as may apply to the respective disposition. The Collateral Agent may, without notice or publication, adjourn any public or private disposition or cause the same to be adjourned from time to time by
announcement at the time and place fixed for the disposition, and such disposition may be made at any time or place to which the disposition may be so adjourned. To the extent permitted by any such requirement of law, the Collateral Agent may bid
for and become the purchaser (and may pay all or any portion of the purchase price by crediting Obligations against the purchase price) of the Collateral or any item thereof, offered for disposition in accordance with this Section 7.2 without
accountability to the relevant Assignor. If, under applicable law, the Collateral Agent shall be permitted to make disposition of the Collateral within a period of time which does not permit the giving of notice to the relevant Assignor as
hereinabove specified, the Collateral Agent need give such Assignor only such notice of disposition as shall be required by such applicable law. Each Assignor agrees to do or cause to be done all such other acts and things as may be reasonably
necessary to make such disposition or dispositions of all or any portion of the Collateral valid and binding and in compliance with any and all applicable laws, regulations, orders, writs, injunctions, decrees or awards of any and all courts,
arbitrators or governmental instrumentalities, domestic or foreign, having jurisdiction over any such sale or sales, all at such Assignor’s expense.
  
 7.3. Waiver of Claims. Except as otherwise provided in this Agreement, EACH ASSIGNOR HEREBY
WAIVES, TO THE EXTENT PERMITTED BY APPLICABLE LAW, NOTICE AND JUDICIAL HEARING IN CONNECTION WITH THE COLLATERAL AGENT’S TAKING POSSESSION OR THE COLLATERAL AGENT’S DISPOSITION OF ANY OF THE COLLATERAL, INCLUDING, WITHOUT LIMITATION, ANY
AND ALL PRIOR NOTICE AND HEARING FOR ANY PREJUDGMENT REMEDY OR REMEDIES, and each Assignor hereby further waives, to the extent permitted by law:
  
 (i) all damages occasioned by such taking of possession or any such disposition except any damages which are the direct result of the Collateral Agent’s gross negligence or
willful misconduct (as determined by a court of competent jurisdiction in a final and non-appealable decision);
  
 (ii) all other requirements as to the time, place and terms of sale or other requirements with respect to the
enforcement of the Collateral Agent’s rights hereunder; and
  
 (iii) all rights of redemption, appraisement, valuation, stay, extension or moratorium now or hereafter in force under any
applicable law in order to prevent or delay the enforcement of this Agreement or the absolute sale of the Collateral or any portion thereof, and each Assignor, for itself and all who may claim under it, insofar as it or they now or hereafter
lawfully may, hereby waives the benefit of all such laws.
  
 Any sale of, or the grant of options to purchase, or any
other realization upon, any Collateral shall operate to divest all right, title, interest, claim and demand, either at law or in equity, of the relevant Assignor therein and thereto, and shall be a perpetual bar both at law and in equity against
such Assignor and against any and all Persons claiming or attempting to claim the Collateral so sold, optioned or realized upon, or any part thereof, from, through and under such Assignor.
  
 7.4. Application of Proceeds. (a) (I) Subject to the terms of the Intercreditor Agreement,
all moneys collected by the Collateral Agent (or, to the extent the U.S. Pledge Agreement or any other Security Document requires proceeds of collateral thereunder, which constitutes ABL Priority Collateral, to be applied in accordance with the
provisions of this Agreement, the Pledgee under the U.S. Pledge Agreement or the collateral agent or mortgagee under such other Security Document) upon any sale or other disposition of the ABL Priority Collateral, together with all other moneys
received by the Collateral Agent hereunder but subject to the provisions of following clause (g), (or, to the extent the U.S. Pledge Agreement or any other Security Document requires proceeds of collateral thereunder, which constitutes ABL Priority
Collateral, to be applied in accordance with the provisions of this Agreement, the Pledgee under the U.S. Pledge Agreement or the collateral agent or mortgagee under such other Security Document) with respect thereto, shall be applied as
follows:
  
 (i) first, to the payment of
all amounts owing by the respective Assignor to the Collateral Agent and the Administrative Agent of the type described in clauses (iv), (v) and (vi) of the definition of “Obligations”;
  
 (ii) second, to the extent proceeds remain after the application pursuant to preceding
clause (i), to the payment of all amounts owing by the respective Assignor to any Agent of the type described in clauses (vi) and (vii) of the definition of “Obligations”;
  
 (iii) third, subject to the provisions of following clauses (g) and (h), to the extent
proceeds remain after the application pursuant to preceding clauses (i) and (ii), an amount equal to the outstanding Primary U.S. Borrower Obligations shall be paid to the Secured Creditors as provided in Section 7.4(e) hereof, with each Secured
Creditor receiving an amount equal to its outstanding Primary U.S. Borrower Obligations or, if the proceeds are insufficient to pay in full all such Primary U.S. Borrower Obligations, its Pro Rata Share of the amount remaining to be distributed;
  
 (iv) fourth, subject to the provisions of following clause (g), to the extent proceeds remain after the application pursuant to preceding clauses (i) through (iii), inclusive, an
amount equal to the outstanding Primary Foreign Borrower Obligations shall be paid to the Secured Creditors as provided in Section 7.4(e) hereof, with each Secured Creditor receiving an amount equal to its outstanding Primary Foreign Borrower
Obligations or, if the proceeds are insufficient to pay in full all such Primary Foreign Borrower Obligations, its Pro Rata Share of the amount remaining to be distributed;
  
 (v) fifth, subject
to the provisions of the following clause (g), to the extent proceeds remain after the application pursuant to the preceding clauses (i) through (iv), an amount equal to the outstanding Secondary U.S. Borrower Obligations shall be paid to the
Secured Creditors as provided in Section 7.4(e) hereof, with each Secured Creditor receiving an amount equal to its outstanding Secondary U.S. Borrower Obligations or, if the proceeds are insufficient to pay in full all such Secondary U.S. Borrower
Obligations, its Pro Rata Share of the amount remaining to be distributed;
  
 (vi) sixth, subject to the provisions of the following clause (g), to the extent proceeds
remain after the application pursuant to the preceding clauses (i) through (v), an amount equal to the outstanding Secondary Foreign Borrower Obligations shall be paid to the Secured Creditors as provided in Section 7.4(e) hereof, with each Secured
Creditor receiving an amount equal to its outstanding Secondary Foreign Borrower Obligations or, if the proceeds are insufficient to pay in full all such Secondary Foreign Borrower Obligations, its Pro Rata Share of the amount remaining to be distributed;
  
 (vii) seventh, to the extent proceeds remain after the application pursuant to the preceding
clauses (i) through (vi), inclusive, if the Term Credit Document Obligations Termination Date has not theretofore occurred, amounts equal to the Term Obligations shall be paid to the Term Collateral Agent for application to the Term Obligations in
accordance with sub-clauses third and fourth of Section 5.2(a) of the Intercreditor Agreement; and
  
 (viii) eighth, to the extent proceeds remain after the application pursuant to preceding
clauses (i) through (vii), inclusive, and following the termination of this Agreement pursuant to Section 10.8(a) hereof, to the relevant Assignor or to whomever may be lawfully entitled to receive such surplus.
  
 Notwithstanding anything to the contrary contained above, to the extent monies or proceeds to be applied pursuant to this Section 7.4 consist of proceeds
received under any Canadian Security Document or European Security Document, such proceeds will be applied as follows:
  
 (A) In the case of
proceeds received under any Canadian Security Documents:
  
 (i) first, to the payment of
all amounts owing by the respective Canadian Credit Party or Assignor as guarantor of the obligations of the Canadian Credit Parties to the Collateral Agent and the Canadian Administrative Agent of the type described in clauses (iv), (v) and (vi) of
the definition of “Obligations”;
  
 (ii) second, to the extent
proceeds remain after the application pursuant to the preceding clause (i), to the payment of all amounts owing by the respective Canadian Credit Party or Assignor as guarantor of the obligations of the Canadian Credit Parties to any Agent of the
type described in clauses (vi) and (vii) of the definition of “Obligations”;
  
 (iii) third, to the extent
proceeds remain after the application pursuant to the receding clauses (i) and (ii), an amount equal to the outstanding Primary Canadian Borrower Obligations shall be paid to the Secured Creditors as provided in Section 7.4(e) hereof, with each
Secured Creditor receiving an amount equal to its outstanding Primary Canadian Borrower Obligations or, if the proceeds are insufficient to pay in full all such Primary Canadian Borrower Obligations, its Pro Rata Share of the amount remaining to be distributed;
  
 (iv) fourth, to the extent proceeds remain after the application pursuant to the preceding
clauses (i) through (iii), inclusive, an amount equal to the outstanding Secondary Canadian Borrower Obligations shall be paid to the Secured Creditors as provided in Section 7.4(e) hereof, with each Secured Creditor receiving an amount equal to its
outstanding Secondary Canadian Borrower Obligations or, if the proceeds are insufficient to pay in full all such Secondary Canadian Borrower Obligations, its Pro Rata Share of the amount remaining to be distributed; and
  
 (v) fifth, to the extent proceeds remain after the application pursuant to the preceding
clauses (i) through (iv), inclusive, and following the termination of this Agreement pursuant to Section 10.8(a) hereof, to the relevant Assignor or to whomever may be lawfully entitled to receive such surplus;
  
 and (B) in the case of proceeds received under any European Security Document:
  
 (i) first, to the payment of all amounts owing the respective European Credit Party or
Assignor as guarantor of the obligations of the European Credit Parties to the Collateral Agent and the Administrative Agent of the type described in clauses (iv), (v) and (vi) of the definition of “Obligations”;
  
 (ii) second, to the extent proceeds remain after the application pursuant to the preceding
clause (i), to the payment of all amounts owing the respective European Credit Party or Assignor as guarantor of the obligations of the European Credit Parties to any Agent of the type described in clauses (vi) and (vii) of the definition of
“Obligations”;
  
 (iii) third, to the extent
proceeds remain after the application pursuant to the preceding clauses (i) and (ii), an amount equal to the outstanding Primary European Borrower Obligations shall be paid to the Secured Creditors as provided in Section 7.4(e) hereof, with each
Secured Creditor receiving an amount equal to its outstanding Primary European Borrower Obligations or, if the proceeds are insufficient to pay in full all such Primary European Borrower Obligations, its Pro Rata Share of the amount remaining to be distributed;
  
 (iv) fourth, to the extent proceeds remain after the application pursuant to the preceding
clauses (i) through (iii), inclusive, an amount equal to the outstanding Secondary European Borrower Obligations shall be paid to the Secured Creditors as provided in Section 7.4(e) hereof, with each Secured Creditor receiving an amount equal to its
outstanding Secondary European Borrower Obligations or, if the proceeds are insufficient to pay in full all such Secondary European Borrower Obligations, its Pro Rata Share of the amount remaining to be distributed; and
  
 (v) fifth, to the extent proceeds remain after the application pursuant to the preceding
clauses (i) through (iv), inclusive, and following the termination of this Agreement pursuant to Section 10.8(a) hereof, to the relevant Assignor or to whomever may be lawfully entitled to receive such surplus.
  
 (II) Subject to the terms of the Intercreditor Agreement, all moneys collected by the Collateral Agent (or, to the extent the U.S. Pledge Agreement or any
other Security Document requires proceeds of collateral thereunder, which constitutes Term Priority Collateral, to be applied in accordance with the provisions of this Agreement, the Pledgee under the U.S. Pledge Agreement or the collateral agent or
mortgagee under such other Security Document) upon any sale or other disposition of the Term Priority Collateral, together with all other moneys received by the Collateral Agent hereunder (or, to the extent the U.S. Pledge Agreement or any other
Security Document requires proceeds of collateral thereunder, which constitutes Term Priority Collateral, to be applied in accordance with the provisions of this Agreement, the Pledgee under the U.S. Pledge Agreement or the collateral agent or
mortgagee under such other Security Document) with respect thereto, shall be applied as follows:
  
 (i) first, in accordance with
sub-clauses second and third of Section 5.1(a) of the Intercreditor Agreement, to the Term Collateral Agent
for application to Term Obligations until same have been repaid in full;
  
 (ii) second, to the extent
proceeds remain after the application pursuant to preceding clause (i), as otherwise provided in Section 7.4(a)(I).
  
 (b) For purposes of this Agreement: (i) “Pro Rata Share” shall mean, when calculating a Secured Creditor’s portion of any distribution or amount, that amount (expressed as a percentage) equal to a fraction the numerator
of which is the then unpaid amount of such Secured Creditor’s Primary U.S. Borrower Obligations, Primary Foreign Borrower Obligations, Primary Canadian Borrower Obligations, Primary European Borrower Obligations, Secondary U.S. Borrower
Obligations, Secondary Foreign Borrower Obligations, Secondary Canadian Borrower Obligations, or Secondary European Borrower Obligations, as the case may be, and the denominator of which is the then outstanding amount of all Primary U.S. Borrower
Obligations, Primary Foreign Borrower Obligations, Primary Canadian Borrower Obligations, Primary European Borrower Obligations, Secondary U.S. Borrower Obligations, Secondary Foreign Borrower Obligations, Secondary Canadian Borrower Obligations,
Secondary European Borrower Obligations, or as the case may be, (ii) “Primary Obligations” shall mean (x) with respect to the Credit Document Obligations, all unpaid principal (or, Face Amount, as applicable) of, premium, if any, fees and interest on, all
Loans, all Unpaid Drawings, the Stated Amount of all outstanding Letters of Credit and all Fees, (y) in the case of the Other Obligations, all amounts due to an Other Creditor under each Secured Hedging Agreement (other than indemnities, fees
(including, without limitation, attorneys’ fees) and similar obligations and liabilities) and (z) in the case of Treasury Services Obligations, all amounts due under each Treasury Services Agreement with an Treasury Services Creditor (other
than indemnities, fees (including, without limitation, attorneys’ fees) and similar obligations and liabilities), (iii) “Secondary
Obligations” shall mean all Obligations other than Primary Obligations, (iv) “Primary U.S. Borrower Obligations” shall mean all Primary Obligations which are
also U.S. Borrower Obligations, (v) “Secondary U.S. Borrower Obligations” shall mean all Secondary Obligations which are also U.S. Borrower Obligations, (vi) “Primary Canadian Borrower Obligations” shall mean all Primary Obligations which
are also Canadian Borrower Obligations, (vii) “Secondary Canadian Borrower Obligations” shall mean all Secondary Obligations which are also Canadian Borrower Obligations, (viii) “Primary European Borrower Obligations” shall mean all Primary Obligations which
are also European Borrower Obligations, (ix) “Secondary European Borrower Obligations” shall mean all Secondary Obligations which are also European Borrower Obligations, (x) “Primary Foreign Borrower Obligations” shall mean all Primary Canadian Borrower
Obligations and Primary European Borrower Obligations and (xi) “Secondary Foreign Borrower Obligations” shall mean all Secondary Canadian Borrower Obligations and Secondary European Borrower Obligations.
  
 (c) When payments to Secured Creditors are based upon their respective Pro Rata Shares, the amounts received by such Secured Creditors hereunder shall be applied
(for purposes of making determinations under this Section 7.4 only) (i) first, to their Primary Obligations and (ii) second, to their Secondary Obligations. If any payment to any Secured Creditor of its Pro Rata Share of any distribution would result in overpayment to such Secured Creditor,
such excess amount shall instead be distributed in respect of the unpaid Primary Obligations or Secondary Obligations, as the case may be, of the other Secured Creditors, with each Secured Creditor whose Primary Obligations or Secondary Obligations,
as the case may be, have not been paid in full to receive an amount equal to such excess amount multiplied by a fraction the numerator of which is the unpaid Primary Obligations or Secondary Obligations, as the case may be, of such Secured Creditor
and the denominator of which is the unpaid Primary Obligations or Secondary Obligations, as the case may be, of all Secured Creditors entitled to such distribution.
  
 (d) Each of the Secured Creditors, by their acceptance of the benefits hereof and of the other Security Documents, agrees and acknowledges that if the Lender Creditors receive a
distribution on account of undrawn amounts with respect to Letters of Credit issued under the Credit Agreement (which shall only occur after all Loans and Unpaid Drawings of the respective Tranche have been paid in full), such amounts shall be paid
to the Administrative Agent under the Credit Agreement and held by it, for the equal and ratable benefit of the Lender Creditors, as cash security for the repayment of Obligations owing to the Lender Creditors as such. If any amounts are held as
cash security pursuant to the immediately preceding sentence, then upon the termination of all outstanding Letters of Credit under the Credit Agreement, and after the application of all such cash security to the repayment of all Obligations owing to
the Lender Creditors after giving effect to the termination of all such Letters of Credit, if there remains any excess cash, such excess cash shall be returned by the Administrative Agent to the Collateral Agent for distribution in accordance with
Section 7.4(a) hereof.
  
 (e) Subject to the terms of the Intercreditor Agreement, all payments required to be made hereunder shall be made (x) if
to the Lender Creditors, to the Administrative Agent for the account of the Lender Creditors, (y) if to the Other Creditors or the Treasury Services Creditors, to the trustee, paying agent or other similar representative (each, a “Representative”) for the Other Creditors or the Treasury Secured Creditors, as
applicable, or, in the absence of such a Representative, directly to the Other Creditors or the Treasury Secured Creditors, as applicable and (z) if to the Term Secured Parties, to the Term Collateral Agent for the account of the Term Secured
Parties.
  
 (f) For purposes of applying payments received in accordance with this Section 7.4, the Collateral Agent shall be
entitled to rely upon (i) the Administrative Agent and (ii) the Representative or, in the absence of such a Representative, upon the Other Creditors and the Treasury Services Creditors, as applicable, for a determination (which the Administrative
Agent, each Representative, the Other Creditors and the Treasury Services Creditors agree (or shall agree) to provide upon request of the Collateral Agent) of the outstanding Primary Obligations, Secondary Obligations and Tertiary Obligations (and
Dollar Equivalents thereof) owed to the Lender Creditors, the Other Creditors or the Treasury Services Creditors as the case may be. Unless it has received written notice from a Lender Creditor, an Other Creditor or a Treasury Secured Creditor to
the contrary, the Administrative Agent and each Representative, in furnishing information pursuant to the preceding sentence, and the Collateral Agent, in acting hereunder, shall be entitled to assume that no Tertiary Obligations are
outstanding.
  
 (g) Notwithstanding anything to the contrary contained above, to the extent monies or proceeds to be applied pursuant to
this Section 7.4 consist of proceeds received from a sale or other disposition of Excess Exempted Foreign Entity Voting Stock, such proceeds will be applied as otherwise required above in this Section 7.4, but for this purpose treating the
outstanding Primary Obligations, Secondary Obligations and Tertiary Obligations as only those obligations secured by the Excess Exempted Foreign Entity Voting Stock in accordance with the provisions of clause (x) to the proviso appearing at the end
of Section 3.1 of the U.S. Pledge Agreement and Section 1.1 above. In determining whether any Excess Exempted Foreign Entity Voting Stock has been sold or otherwise disposed of, the Collateral Agent shall treat any sale or disposition of Voting
Stock of any Exempted Foreign Entity as first being a sale of Voting Stock which is not Excess Exempted Foreign Entity Voting Stock until such time as the stock sold represents 65% of the total combined voting power of all classes of Voting Stock of
the respective Exempted Foreign Entity and, after such threshold has been met, any further sales of Voting Stock of the respective Exempted Foreign Entity shall be treated as sales of Excess Exempted Foreign Entity Voting Stock.
  
 (h) It is understood that the Assignors shall remain jointly and severally liable to the extent of any deficiency between the amount of the proceeds of the Collateral and the
aggregate amount of the Obligations.
  
 (i) It is understood and agreed by all parties hereto that the Collateral Agent shall have no liability for any
determinations made by it in this Section 7.4 (including, without limitation, as to whether given Collateral constitutes Term Priority Collateral or ABL Priority Collateral), in each case except to the extent resulting from the gross negligence or
willful misconduct of the Collateral Agent (as determined by a court of competent jurisdiction in a final and non-appealable decision). The parties also agree that the Collateral Agent may (but shall not be required to), at any time and in its sole
discretion, and with no liability resulting therefrom, petition a court of competent jurisdiction regarding any application of Collateral in accordance with the requirements hereof and of the Intercreditor Agreement, and the Collateral Agent shall
be entitled to wait for, and may conclusively rely on, any such determination.
  
 7.5. Remedies Cumulative.
Subject to the terms of (and to the extent not inconsistent with) the Intercreditor Agreement, each and every right, power and remedy hereby specifically given to the Collateral Agent shall be in addition to every other right, power and remedy
specifically given to the Collateral Agent under this Agreement, the other Secured Debt Agreements or now or hereafter existing at law, in equity or by statute and each and every right, power and remedy whether specifically herein given or otherwise
existing may be exercised from time to time or simultaneously and as often and in such order as may be deemed expedient by the Collateral Agent. All such rights, powers and remedies shall be cumulative and the exercise or the beginning of the
exercise of one shall not be deemed a waiver of the right to exercise any other or others. No delay or omission of the Collateral Agent in the exercise of any such right, power or remedy and no renewal or extension of any of the Obligations shall
impair any such right, power or remedy or shall be construed to be a waiver of any Default or Event of Default or an acquiescence thereof. No notice to or demand on any Assignor in any case shall entitle it to any other or further notice or demand
in similar or other circumstances or constitute a waiver of any of the rights of the Collateral Agent to any other or further action in any circumstances without notice or demand. In the event that the Collateral Agent shall bring any suit to
enforce any of its rights hereunder and shall be entitled to judgment, then in such suit the Collateral Agent may recover reasonable expenses, including reasonable attorneys’ fees, and the amounts thereof shall be included in such
judgment.
  
 7.6. Discontinuance of Proceedings. In case the Collateral Agent shall have instituted any proceeding to enforce any right, power or remedy under this Agreement by foreclosure, sale, entry or otherwise, and such
proceeding shall have been discontinued or abandoned for any reason or shall have been determined adversely to the Collateral Agent, then and in every such case the relevant Assignor, the Collateral Agent and each holder of any of the Obligations
shall be restored to their former positions and rights hereunder with respect to the Collateral subject to the security interest created under this Agreement, and all rights, remedies and powers of the Collateral Agent shall continue as if no such
proceeding had been instituted.
  
 ARTICLE VIII
  
 INDEMNITY
  
 8.1. Indemnity. (a) Each Assignor jointly and severally agrees to indemnify, reimburse and hold the Collateral
Agent, each other Secured Creditor and their respective successors, assigns, employees, affiliates and agents (hereinafter in this Section 8.1 referred to individually as “Indemnitee,” and collectively as “Indemnitees”) harmless from any and all liabilities, obligations, damages,
injuries, penalties, claims, demands, actions, suits, judgments and any and all costs, expenses or disbursements (including reasonable attorneys’ fees and expenses) (for the purposes of this Section 8.1 the foregoing are collectively called
“expenses”) of whatsoever kind and nature imposed on, asserted
against or incurred by any of the Indemnitees in any way relating to or arising out of this Agreement, any other Secured Debt Agreement or any other document executed in connection herewith or therewith or in any other way connected with the
administration of the transactions contemplated hereby or thereby or the enforcement of any of the terms of, or the preservation of any rights under any thereof, or in any way relating to or arising out of the manufacture, ownership, ordering,
purchase, delivery, control, acceptance, lease, financing, possession, operation, condition, sale, return or other disposition, or use of the Collateral (including, without limitation, latent or other defects, whether or not discoverable), the
violation of the laws of any country, state or other governmental body or unit, any tort (including, without limitation, claims arising or imposed under the doctrine of strict liability, or for or on account of injury to or the death of any Person
(including any Indemnitee), or property damage), or contract claim; provided that no Indemnitee shall be indemnified pursuant to this Section 8.1(a) for losses, damages or liabilities to the extent caused by the gross negligence or willful misconduct of
such Indemnitee (as determined by a court of competent jurisdiction in a final and non-appealable decision); provided further that the Assignors shall not be required to reimburse the legal fees and expenses of more than one outside counsel (in addition to any necessary or advisable special counsel and
up to one local counsel in each applicable local jurisdiction) for all Indemnitees unless, in the written opinion of outside counsel reasonably satisfactory to the Assignors and the Collateral Agent, representation of all such Indemnitees would be
inappropriate due to the existence of an actual or potential conflict of interest. Each Assignor agrees that upon written notice by any Indemnitee of the assertion of such a liability, obligation, damage, injury, penalty, claim, demand, action, suit
or judgment, the relevant Assignor shall assume full responsibility for the defense thereof. Each Indemnitee agrees to use its best efforts to promptly notify the relevant Assignor of any such assertion of which such Indemnitee has
knowledge.
  
 (b) Without limiting the application of Section 8.1(a) hereof, each Assignor agrees, jointly and severally, to pay or
reimburse the Collateral Agent for any and all reasonable fees, costs and expenses of whatever kind or nature incurred in connection with the creation, preservation or protection of the Collateral Agent’s Liens on, and security interest in,
the Collateral, including, without limitation, all fees and taxes in connection with the recording or filing of instruments and documents in public offices, payment or discharge of any taxes or Liens upon or in respect of the Collateral, premiums
for insurance with respect to the Collateral and all other fees, costs and expenses in connection with protecting, maintaining or preserving the Collateral and the Collateral Agent’s interest therein, whether through judicial proceedings or
otherwise, or in defending or prosecuting any actions, suits or proceedings arising out of or relating to the Collateral.
  
 (c) Without limiting the application of Section 8.1(a) or (b) hereof, each Assignor agrees, jointly and
severally, to pay, indemnify and hold each Indemnitee harmless from and against any loss, costs, damages and expenses which such Indemnitee may suffer, expend or incur in consequence of or growing out of any misrepresentation by any Assignor in this
Agreement, any other Secured Debt Agreement or in any writing contemplated by or made or delivered pursuant to or in connection with this Agreement or any other Secured Debt Agreement.
  
 (d) If and to the extent that the obligations of any Assignor under this Section 8.1 are unenforceable for any reason, such Assignor hereby agrees to make the maximum
contribution to the payment and satisfaction of such obligations which is permissible under applicable law.
  
 8.2. Indemnity Obligations Secured by Collateral; Survival. Any amounts paid by any Indemnitee as to which such Indemnitee has the right to reimbursement shall constitute Obligations secured by the Collateral. The indemnity obligations
of each Assignor contained in this Article VIII shall continue in full force and effect notwithstanding the full payment of all of the other Obligations and notwithstanding the full payment of all the Notes issued, and Loans made, under the Credit
Agreement, the termination of all Letters of Credit (and the full payment of all Unpaid Drawings) issued under the Credit Agreement, the termination of all Secured Hedging Agreements entered into with the Other Creditors, the termination of all
Treasury Services Agreements entered into with the Treasury Services Creditors and the payment of all other Obligations and notwithstanding the discharge thereof and the occurrence of the Termination Date.
  
 ARTICLE IX
  
 DEFINITIONS
  
 The following terms shall have the meanings herein specified. Such definitions shall be equally applicable to the singular and plural forms of the terms
defined.
  
 “ABL Priority Collateral” shall have the meaning assigned that term in the
Intercreditor Agreement.
  
 “Account” shall mean any “account” as such term is defined in the
Uniform Commercial Code as in effect on the Restatement Effective Date in the State of New York, and in any event shall include but shall not be limited to, all rights to payment of any monetary obligation, whether or not earned by performance, (i)
for property that has been or is to be sold, leased, licensed, assigned or otherwise disposed of, (ii) for services rendered or to be rendered, (iii) for a policy of insurance issued or to be issued, (iv) for a secondary obligation incurred or to be
incurred, (v) for energy provided or to be provided, (vi) for the use or hire of a vessel under a charter or other contract, (vii) arising out of the use of a credit or charge card or information contained on or for use with the card, or (viii) as
winnings in a lottery or other game of chance operated or sponsored by a State, governmental unit of a State, or person licensed or authorized to operate the game by a State or governmental unit of a State. Without limiting the foregoing, the term
“account” shall include all Health-Care-Insurance Receivables.
  
 “Administrative Agent” shall have the meaning provided in the recitals of this
Agreement.
  
 “Aleris Canada” shall have the meaning provided in the recitals of this
Agreement
  
 “Agreement” shall mean this U.S. Security Agreement, as the same may be amended,
modified, restated and/or supplemented from time to time in accordance with its terms.
  
 “Aleris” shall have the meaning provided in the recitals of this
Agreement.
  
 “As-Extracted Collateral” shall mean “as-extracted collateral” as such
term is defined in the Uniform Commercial Code as in effect on the Effective Date in the State of New York.
  
 “Assignor” shall have the meaning provided in the first paragraph of this
Agreement.
  
 “Borrower” shall have the meaning provided in the recitals to this
Agreement.
  
 “Canadian Administrative Agent” shall have the meaning provided in the recitals of
this Agreement.
  
 “Canadian Borrowers” shall have the meaning provided in the recitals of this
Agreement.
  
 “Canadian Borrower Obligations” shall mean all Obligations of the Canadian
Borrowers and any guarantees thereof (including by U.S. Credit Parties) pursuant to the Guaranties or pursuant to any other Credit Document.
  
 “Cash Collateral Account” shall mean a non-interest bearing cash collateral account maintained with, and in the sole dominion and control of, the Collateral Agent for the benefit of the Secured
Creditors.
  
 “Chattel Paper” shall mean “chattel paper” as such term is defined in
the Uniform Commercial Code as in effect on the Restatement Effective Date in the State of New York. Without limiting the foregoing, the term “Chattel Paper” shall in any event include all Tangible Chattel Paper and all Electronic
Chattel Paper.
  
 “Class” shall have the meaning provided in Section 10.2 of this
Agreement.
  
 “Collateral” shall have the meaning provided in Section 1.1(a) of this
Agreement.
  
 “Collateral Agent” shall have the meaning provided in the first paragraph of this
Agreement.
  
 “Commercial Tort Claims” shall mean “commercial tort claims” as such
term is defined in the Uniform Commercial Code as in effect on the date hereof in the State of New York.
  

“Contract Rights” shall mean all rights of any Assignor under each Contract,
including, without limitation, (i) any and all rights to receive and demand payments under any or all Contracts, (ii) any and all rights to receive and compel performance under any or all Contracts and (iii) any and all other rights, interests and
claims now existing or in the future arising in connection with any or all Contracts.
  
 “Contracts” shall mean all contracts between any Assignor and one or more
additional parties (including, without limitation, any Interest Rate Protection Agreements, Currency Hedging Agreements, Treasury Services Agreements, licensing agreements and any partnership agreements, joint venture agreements and limited
liability company agreements).
  
 “Copyrights” shall mean any United States or foreign copyright now or hereafter
owned by any Assignor, including any registrations of any copyrights, in the United States Copyright Office or any foreign equivalent office, as well as any application for a copyright registration now or hereafter made with the United States
Copyright Office or any foreign equivalent office by any Assignor.
  
 “Credit Agreement” shall have the meaning provided in the recitals of this
Agreement.
  
 “Credit Document Obligations” shall have the meaning provided in the definition of
“Obligations” in this Article IX.
  
 “Deposit Accounts” shall mean all “deposit accounts” as such term is
defined in the Uniform Commercial Code as in effect on the Restatement Effective Date in the State of New York.
  
 “Discharge of Term Obligations” shall have the meaning assigned that term in the
Intercreditor Agreement.
  
 “Documents” shall mean “documents” as such term is defined in the
Uniform Commercial Code as in effect on the Restatement Effective Date in the State of New York.
  
 “Domain Names” shall mean all Internet domain names and associated URL addresses
in or to which any Assignor now or hereafter has any right, title or interest.
  
 “Electronic Chattel Paper” shall mean “electronic chattel paper” as
such term is defined in the Uniform Commercial Code as in effect on the Restatement Effective Date in the State of New York.
  
 “Equipment” shall mean any “equipment” as such term is defined in the
Uniform Commercial Code as in effect on the Restatement Effective Date in the State of New York, and in any event, shall include, but shall not be limited to, all machinery, equipment, furnishings, fixtures and vehicles now or hereafter owned by any
Assignor and any and all additions, substitutions and replacements of any of the foregoing and all accessions thereto, wherever located, together with all attachments, components, parts, equipment and accessories installed thereon or affixed
thereto.
  
 “Excess Exempted Foreign Entity Voting Stock” shall have the meaning provided in
the U.S. Pledge Agreement.
  
 “Excess Foreign Corporation Equity Interests” shall have the meaning provided in
Section 1.1(a).
  
 “Excluded Equipment” shall mean at any date any Equipment of an Assignor which is
subject to, or secured by, a Capital Lease Obligation or purchase money Indebtedness which is permitted under Section 10.04 of the Credit Agreement if and to the extent that (i) the express terms of a valid and enforceable restriction in favor of a
Person who is not Aleris or one of its Subsidiaries contained in the agreements or documents granting or governing such Capital Lease Obligation or purchase money Indebtedness prohibits, or requires any consent or establishes any other conditions
for, an assignment thereof, or a grant of a security interest therein, by an Assignor and (ii) such restriction relates only to the asset or assets acquired by an Assignor with the Proceeds of such Capital Lease Obligation or purchase money
Indebtedness; provided that all Proceeds paid or payable to any Assignor from any sale, transfer or assignment or other voluntary or involuntary disposition of such Equipment and all rights to receive such Proceeds shall be included in the
Collateral to the extent not otherwise required to be paid to the holder of the Capital Lease Obligation or purchase money Indebtedness secured by such Equipment.
  
 “Exempted Foreign Entity” shall have the meaning provided in the U.S. Pledge Agreement.
  
 “Existing U.S. Security Agreement” shall mean the U.S. Security Agreement, dated as of August 1, 2006, among certain of the Assignors, the Administrative Agent and Citicorp North America, Inc., as
Collateral Agent.
  
 “European Borrower” shall have the meaning provided in the recitals of this
Agreement.
  
 “European Borrower Obligations” shall mean all Obligations of the European
Borrower and any guarantees thereof (including by U.S. Credit Parties) pursuant to the Guaranties or pursuant to any other Credit Document.
  
 “Event of Default” shall mean (i) at any time when any Credit Document Obligations or Letters of Credit are outstanding or any Commitments under the Credit Agreement exist, any Event of
Default under, and as defined in the Credit Agreement and (ii) at any time after all of the Credit Document Obligations have been paid in full and all Commitments under the Credit Agreement have been terminated and no further Commitments and Letters
of Credit may be provided thereunder, any payment default on any of the Obligations after the expiration of any applicable grace period.
  
 “Foreign Corporation” shall have the meaning provided in the U.S. Pledge Agreement.
  
 “General Intangibles” shall mean “general intangibles” as such term is defined in the Uniform Commercial Code as in effect on the Restatement Effective Date in the State of New
York.
  
 “Goods” shall mean “goods” as such term is defined in the Uniform
Commercial Code as in effect on Restatement Effective Date in the State of New York.
  
 “Health-Care-Insurance Receivable” shall mean any “health-care-insurance
receivable” as such term is defined in the Uniform Commercial Code as in effect on the Restatement Effective Date in the State of New York.
  
 “Indemnitee” shall have the meaning provided in Section 8.1(a) of this Agreement.
  
 “Instrument” shall mean “instruments” as such term is defined in the Uniform Commercial Code as in effect on the Restatement Effective Date in the State of New
York.
  
 “Inventory” shall mean merchandise, inventory and goods, and all additions,
substitutions and replacements thereof and all accessions thereto, wherever located, together with all goods, supplies, incidentals, packaging materials, labels, materials and any other items used or usable in manufacturing, processing, packaging or
shipping same, in all stages of production from raw materials through work in process to finished goods, and all products and proceeds of whatever sort and wherever located any portion thereof which may be returned, rejected, reclaimed or
repossessed by the Collateral Agent from any Assignor’s customers, and shall specifically include all “inventory” as such term is defined in the Uniform Commercial Code as in effect on the Restatement Effective Date in the State of
New York.
  
 “Investment Property” shall mean “investment property” as such term is
defined in the Uniform Commercial Code as in effect on the date hereof in the State of New York.
  
 “Lender Creditors” shall have the meaning provided in the recitals of this
Agreement.
  
 “Lenders” shall have the meaning provided in the recitals of this
Agreement.
  
 “Letter-of-Credit Rights” shall mean “letter-of-credit rights” as such
term is defined in the Uniform Commercial Code as in effect on the Restatement Effective Date hereof in the State of New York.
  
 “Location” of any Assignor, shall mean such Assignor’s
“location” as determined pursuant to Section 9-307 of the UCC.
  
 “Marks” shall mean all right, title and interest in and to any trademarks, service
marks and trade names now owned or held or hereafter acquired by any Assignor, including any registration or application for registration of any trademarks and service marks now owned or held or hereafter acquired by any Assignor, which are
registered or filed for registration in the United States Patent and Trademark Office or the equivalent thereof in any state of the United States or any equivalent foreign office or agency, as well as any unregistered trademarks and service marks
owned by an Assignor and any trade dress including logos, designs, fictitious business names and other business identifiers owned by any Assignor; provided, however that the definition of Marks shall not include any intent-to-use trademark
applications to the extent a grant of a security interest therein would invalidate such intent-to-use trademark application.
  
 “Non-Voting Equity Interests” shall have the meaning provided in the U.S. Pledge
Agreement.
  
 “Noticed Event of Default” shall mean (i) an Event of Default under Section 11.01
or 11.05 of the Credit Agreement and (ii) any other Event of Default in respect of which the Administrative Agent has given Aleris notice that such Event of Default constitutes a “Noticed Event of Default”.
  
 “Obligations” shall mean and include, as to any Assignor, all of the following:
  
 (i) the full and prompt payment when due (whether at stated maturity, by acceleration or otherwise) of all obligations, liabilities and indebtedness (including, without limitation,
unpaid principal (or, Face Amount, as applicable), premium, interest (including, without limitation, all interest that accrues after the commencement of any case, proceeding or other action relating to the bankruptcy, insolvency, reorganization or
similar proceeding of any Assignor at the rate provided for in the respective documentation, whether or not a claim for post-petition interest is allowed in any such proceeding), reimbursement obligations under Letters of Credit, fees, costs and
indemnities) of such Assignor to the Lender Creditors, whether now existing or hereafter incurred under, arising out of, or in connection with, the Credit Agreement and the other Credit Documents to which such Assignor is a party (including, without
limitation, in the event such Assignor is a Guarantor, all such obligations, liabilities and indebtedness of such Assignor under its Guaranty) (all such obligations, liabilities and indebtedness under this clause (i), except to the extent consisting
of obligations or indebtedness with respect to Secured Hedging Agreements, being herein collectively called the “Credit Document Obligations”);
  
 (ii) the full and prompt payment when due (whether at stated maturity, by acceleration or otherwise) of all obligations,
liabilities and indebtedness (including, without limitation, all interest that accrues after the commencement of any case, proceeding or other action relating to the bankruptcy, insolvency, reorganization or similar proceeding of any Assignor at the
rate provided for in the respective documentation, whether or not a claim for post-petition interest is allowed in any such proceeding) owing by such Assignor to the Other Creditors, now existing or hereafter incurred under, arising out of or in
connection with any Secured Hedging Agreement, whether such Secured Hedging Agreement is now in existence or hereinafter arising (including, without limitation, in the case of a Assignor that is a Guarantor, all obligations, liabilities and
indebtedness of such Assignor under its Guaranty in respect of the Secured Hedging Agreements), (all such obligations, liabilities and indebtedness under this clause (ii) being herein collectively called the “Other Obligations”);
  
 (iii) the full and prompt payment when due (whether at the stated maturity, by required prepayment, declaration, acceleration, demand or otherwise) of all obligations, liabilities and
indebtedness (including, without limitation, all interest that accrues after the commencement of any case, proceeding or other action relating to the bankruptcy, insolvency, reorganization or similar proceeding at the rate provided for in the
respective documentation, whether or not such interest is allowed in any such proceeding) owing by Aleris or any of its Subsidiaries to each Treasury Services Creditor with respect to Treasury Services, whether now in existence or hereafter arising
in each case under any Treasury Services Agreement (all such obligations, liabilities and indebtedness described in this clause (iii) being herein collectively called the “Treasury Services Obligations”);
  
 (iv) any and all sums advanced by the Collateral Agent in order to preserve the Collateral or preserve its security interest in the Collateral;
  
 (v) in the event of any proceeding for the collection or enforcement of any indebtedness, obligations, or liabilities of such Assignor referred to in clauses (i) through (iii) above,
after an Event of Default shall have occurred and be continuing, the reasonable expenses of retaking, holding, preparing for sale or lease, selling or otherwise disposing of or realizing on the Collateral, or of any exercise by the Collateral Agent
of its rights hereunder, together with reasonable attorneys’ fees and court costs;
  
 (vi) all amounts paid by any Indemnitee as to which such Indemnitee has the right to reimbursement under Section 8.1 of
this Agreement; and
  
 (vii) all amounts owing to any Agent or any of its affiliates pursuant to any of the Credit Documents in its capacity as
such;
  
 it being acknowledged and agreed that the
“Obligations” shall include extensions of credit of the types described above, whether outstanding on the date of this Agreement or extended from time to time after the date of this Agreement.
  
 “Other Creditors” shall have the meaning provided in the recitals of this Agreement.
  
 “Other Obligations” shall have the meaning provided in the definition of “Obligations” in this Article IX.
  
 “Patents” shall mean any patent in or to which any Assignor now or hereafter has any ownership right, title or interest therein, and any divisions and, continuations (including,
but not limited to, continuations-in-parts), as well as any application for a patent now or hereafter made by any Assignor.
  
 “Permits” shall mean, to the extent permitted to be assigned by the terms thereof
or by applicable law, all licenses, permits, rights, orders, variances, franchises or authorizations of or from any governmental authority or agency.
  
 “Person” shall mean any individual, partnership, joint venture, firm, corporation, association, limited liability company, trust or other enterprise or any government or political
subdivision or any agency, department or instrumentality thereof.
  
 “Primary Canadian Borrower Obligations” shall have the meaning provided in Section
7.4(b) of this Agreement.
  
 “Primary European Borrower Obligations” shall have the meaning provided in Section
7.4(b) of this Agreement.
  
 “Primary Foreign Borrower Obligations” shall have the meaning provided in Section
7.4(b) of this Agreement.
  
 “Primary Obligations” shall have the meaning provided in Section 7.4(b) of this
Agreement.
  
 “Primary U.S. Borrower Obligations” shall have the meaning provided in Section
7.4(b) of this Agreement.
  
 “Pro Rata Share” shall have the meaning provided in Section 7.4(b) of this
Agreement.
  
 “Proceeds” shall mean all “proceeds” as such term is defined in the
Uniform Commercial Code as in effect in the State of New York on the Restatement Effective Date and, in any event, shall also include, but not be limited to, (i) any and all proceeds of any insurance, indemnity, warranty or guaranty payable to the
Collateral Agent or any Assignor from time to time with respect to any of the Collateral, (ii) any and all payments (in any form whatsoever) made or due and payable to any Assignor from time to time in connection with any requisition, confiscation,
condemnation, seizure or forfeiture of all or any part of the Collateral by any governmental authority (or any person acting under color of governmental authority) and (iii) any and all other amounts from time to time paid or payable under or in
connection with any of the Collateral.
  
 “Registered Organization” shall have the meaning provided in the Uniform
Commercial Code as in effect in the State of New York.
  
 “Representative” shall have the meaning provided in Section 7.4(e) of this
Agreement.
  
 “Required Secured Creditors” shall mean (i) at any time when any Credit Document
Obligations are outstanding or any Commitments under the Credit Agreement exist, the Required Lenders (or, to the extent provided in Section 13.12 of the Credit Agreement, each of the Lenders) and (ii) at any time after all of the Credit Document
Obligations have been paid in full and all Commitments under the Credit Agreement have been terminated and no further Commitments may be provided thereunder, the holders of a majority of the Other Obligations and Treasury Services Obligations (taken
as a whole).
  
 “Requisite Creditors” shall have the meaning provided in Section 10.2 of this
Agreement.
  
 “Secondary Canadian Borrower Obligations shall have the meaning provided in Section
7.4(b) of this Agreement.
  
 “Secondary European Borrower Obligations” shall have the meaning provided in
Section 7.4(b) of this Agreement.
  
 “Secondary Foreign Borrower Obligations” shall have the meaning provided in
Section 7.4(b) of this Agreement.
  
 “Secondary Obligations” shall have the meaning provided in Section 7.4(b) of this
Agreement.
  
 “Secondary U.S. Borrower Obligations” shall have the meaning provided in Section
7.4(b) of this Agreement.
  
 “Secured Creditors shall have the meaning provided in the recitals of this
Agreement.
  
 “Secured Debt Agreements” shall mean and include this (i) Agreement, (ii) the
other Credit Documents, (iii) the Secured Hedging Agreements entered into with an Other Creditor, (iv) the Treasury Services Agreements entered into with a Treasury Services Creditor and (v) any intercreditor agreement entered into by the Collateral
Agent with an Other Creditor.
  
 “Secured Hedging Agreement” shall mean each Interest Rate Protection Agreement
and/or Other Hedging Agreements provided that (i) such Interest Rate
Protection Agreement and/or Other Hedging Agreement expressly states that (x) it constitutes a “Secured Hedging Agreement” for purposes of the Credit Agreement and the other Credit Documents and (y) does not constitute a “Secured
Hedging Agreement” for purposes of the Term Loan Agreement, the Term Security Documents or any guaranties relating to the Term Loan Agreement, (ii) Aleris and the other parties thereto shall have delivered to the Collateral Agent a written
notice specifying that such Interest Rate Protection Agreement and/or Other Hedging Agreement (x) constitutes a “Secured Hedging Agreement” for purposes of the Credit Agreement and the other Credit Documents, (y) does not constitute a
“Secured Hedging Agreement” for purposes of the Term Loan Agreement, the Term Security Documents or any guaranties relating to the Term Loan Agreement and (z) in the case of Aleris, that such Interest Rate Protection Agreement and/or
Other Hedging Agreement and the obligations of Aleris and its Subsidiaries thereunder have been, and will be, incurred in compliance with the Credit Agreement, (iii) on the effective date of such Interest Rate Protection Agreement and/or Other
Hedging Agreement and from time to time thereafter, at the request of the Collateral Agent, Aleris and the other parties thereto shall have notified the Administrative Agent in writing of the aggregate amount of exposure under such Interest Rate
Protection Agreement and/or Other Hedging Agreement and (iv) such Other Creditor, if it is not a Lender or an affiliate thereof (even if such Lender subsequently ceases to be a Lender under the Credit Agreement for any reason), has entered into an
intercreditor agreement with respect to the relevant Interest Rate Protection Agreement or Other Hedging Agreement on terms reasonably satisfactory to the Collateral Agent.
  
 “Software” shall mean “software” as such term is defined in the Uniform Commercial Code as in effect on the Restatement Effective Date in the State of New
York.
  
 “Subsidiary” shall mean, as to any Person, (i) any corporation more than 50% of
whose stock of any class or classes having by the terms thereof ordinary voting power to elect a majority of the directors of such corporation (irrespective of whether or not at the time stock of any class or classes of such corporation shall have
or might have voting power by reason of the happening of any contingency) is at the time owned by such Person and/or one or more Subsidiaries of such Person and (ii) any partnership, limited liability company, association, joint venture or other
entity in which such Person and/or one or more Subsidiaries of such Person has more than a 50% equity interest at the time.
  
 “Supporting Obligations” shall mean any “supporting obligation” as
such term is defined in the Uniform Commercial Code as in effect on the Restatement Effective Date in the State of New York, now or hereafter owned by any Assignor, or in which any Assignor has any rights, and, in any event, shall include, but shall
not be limited to all of such Assignor’s rights in any Letter-of-Credit Right or secondary obligation that supports the payment or performance of, and all security for, any Collateral consisting of Accounts, Chattel Paper, Documents, General
Intangibles, Instruments or Investment Properties.
  
 “Tangible Chattel Paper” shall mean “tangible chattel paper” as such
term is defined in the Uniform Commercial Code as in effect on the Restatement Effective Date in the State of New York.
  
 “Term Agreement” shall have the meaning assigned that term in the Intercreditor
Agreement.
  
 “Term Collateral Agent” shall have the meaning assigned that term in the
Intercreditor Agreement.
  
 “Term Credit Document Obligations Termination Date” shall mean that date upon
which the Discharge of Term Obligations shall have occurred.
  
 “Term Documents” shall have the meaning assigned that term in the Intercreditor
Agreement.
  
 “Term Obligations” shall have the meaning assigned that term in the Intercreditor
Agreement.
  
 “Term Priority Collateral” shall have the meaning assigned that term in the
Intercreditor Agreement.
  
 “Term Secured Parties” shall have the meaning assigned that term in the
Intercreditor Agreement.
  
 “Termination Date” shall have the meaning provided in Section 10.8(a) of this
Agreement.
  
 “Timber-to-be-Cut” shall mean “timber-to-be-cut” as such term is
defined in the Uniform Commercial Code as in effect on the date hereof in the State of New York.
  
 “Trade Secret Rights” shall mean the rights of an Assignor in any Trade Secret it
holds.
  
 “Transmitting Utility” shall have the meaning given such term in
Section 9-102(a)(80) of the UCC.
  
 “Treasury Services” shall have the meaning provided in the recitals of this
Agreement.
  
 “Treasury Services Agreement” shall have the meaning provided in the recitals of
this Agreement.
  
 “Treasury Services Creditors” shall have the meaning provided in the recitals of
this Agreement.
  
 “Treasury Services Obligations” shall have the meaning provided in the definition
of “Obligations” in this Article IX.
  
 “UCC” shall mean the Uniform Commercial Code as in effect from time to time in the
relevant jurisdiction.
  
 “U.S. Borrower Obligations” shall mean all Obligations of the U.S. Borrowers (but
not as a Guarantor of the Canadian Borrowers, any Canadian Subsidiary Guarantor, the European Borrower or any European Subsidiary Guarantor) and any guarantees of such Obligations pursuant to the Guaranties or pursuant to any other Credit
Document.
  
 “Vehicles” shall mean all cars, trucks, construction and earth moving equipment
covered by a certificate of title law of any state (and where perfection of security interests therein cannot be effected by filings under the UCC).
  
 “Voting Equity Interests” shall have the meaning provided in the U.S. Pledge Agreement.
  
 ARTICLE X
  
 MISCELLANEOUS
  
 10.1. Notices. Except as otherwise specified herein, all notices, requests, demands or other
communications to or upon the respective parties hereto shall be sent or delivered by mail, telegraph, telex, telecopy, cable or courier service and all such notices and communications shall, when mailed, telegraphed, telexed, telecopied, or cabled
or sent by courier, be effective when deposited in the mails, delivered to the telegraph company, cable company or overnight courier, as the case may be, or sent by telex or telecopier, except that notices and communications to the Collateral Agent
or any Assignor shall not be effective until received by the Collateral Agent or such Assignor, as the case may be. All notices and other communications shall be in writing and addressed as follows:
  
 (a)    if to any Assignor, c/o:
  
  Aleris International, Inc.
  25825 Science Park Drive, Suite 400 
  Beachwood, OH 44122
  Attention: General Counsel 
  Telephone No.:   (216) 910-3400
  Telecopier No.:  (216) 910-3650
 

 (b)    if to the Collateral Agent or the Administrative Agent, at:
  
  Deutsche Bank AG New York Branch 
  60 Wall Street
  MS NYC60-0208
  New
York, NY 10005
  Attention:  Marguerite Sutton 
  Telephone No.:   (212) 250-6150 
  Telecopier No.:  (212) 797-4655
 

 (c) if to any Lender Creditor other than the Collateral Agent, at such address as such Lender Creditor shall have
specified in the Credit Agreement;
  
 (d) if to any Other Creditor, at such address as such Other Creditor shall have specified in writing to Aleris and the
Collateral Agent;
  
 (e) if to any Treasury Services Creditor, at such address as such Treasury Services Creditor shall have specified in writing to Aleris and the Collateral Agent;
  
 or at such other address or addressed to such other individual as shall have been furnished in writing by any Person described above to the party required to give notice
hereunder.
  
 10.2. Waiver; Amendment. None
of the terms and conditions of this Agreement (or, to the extent any other Security Document requires waivers or amendments thereunder to occur in accordance with the provisions of this Agreement, such other Security Document) may be changed,
waived, modified or varied in any manner whatsoever unless in writing duly signed by each Assignor (or, to the extent any other Security Document requires waivers or amendments thereunder to occur in accordance with the provisions of this Agreement,
the pledgor, transferor, mortgagor or other corresponding party under such other Security Document) directly affected thereby and the Collateral Agent (or, to the extent any other Security Document requires waivers or amendments thereunder to occur
in accordance with the provisions of this Agreement, the collateral agent or mortgagee under such other Security Document) (with the written consent of the Required Secured Creditors) and subject to the terms of the Intercreditor Agreement;
provided, that, (i) subject to the provisions of the Intercreditor
Agreement, (x) additional Assignors may be added as parties hereto from time to time in accordance with Section 10.12 (or the corresponding section in such other Security Document) without the consent of any other Assignor or of the Secured
Creditors, and (y) Assignors may be removed as parties hereto from time to time in accordance with Section 10.13 (or the corresponding section in such other Security Document), without the consent of any other Assignor or of the Secured Creditors,
(ii) any change, waiver, modification or variance affecting the rights and benefits of a single Class of Secured Creditors (and not all Secured Creditors in a like or similar manner) also shall require the written consent of the Requisite Creditors
of such affected Class and (iii) to the extent provided in an intercreditor agreement delivered pursuant to Section 6.19 of the Intercreditor Agreement (such intercreditor agreement, an “Other Intercreditor Agreement”), the consent of the Other Creditors to
amendments, modifications and waivers described in the Other Intercreditor Agreement shall be required. For the purpose of this Agreement, the term “Class” shall mean each class of Secured Creditors, i.e., whether (x) the Lender Creditors as holders of the Credit Document Obligations,
(y) the Other Creditors as the holders of the Other Obligations or (z) the Treasury Secured Creditors as the holders of the Treasury Secured Obligations. For the purpose of this Agreement, the term “Requisite Creditors” of any Class shall mean each of (x) with respect to the
Credit Document Obligations, the Required Lenders (or, to the extent provided in Section 13.12 of the Credit Agreement, each of the Lenders), (y) with respect to the Other Obligations, the holders of at least a majority of all Other Obligations
outstanding from time to time and (z) with respect to the Treasury Secured Obligations, the holders of al least a majority of all the Treasury Secured Obligations outstanding from time to time.
  
 10.3. Obligations Absolute. Subject to the terms of the Intercreditor Agreement, the
obligations of each Assignor hereunder shall remain in full force and effect without regard to, and shall not be impaired by, (a) any bankruptcy, insolvency, reorganization, arrangement, readjustment, composition, liquidation or the like of such
Assignor; (b) any exercise or non-exercise, or any waiver of, any right, remedy, power or privilege under or in respect of this Agreement or any other Secured Debt Agreement; or (c) any amendment to or modification of any Secured Debt Agreement or
any security for any of the Obligations (in each case), whether or not such Assignor shall have notice or knowledge of any of the foregoing.
  
 10.4. Successors and Assigns. This Agreement shall create a continuing security interest in
the Collateral and shall (i) remain in full force and effect, subject to release and/or termination as set forth in Section 10.8, (ii) be binding upon each Assignor, its successors and assigns, provided however, that no Assignor shall assign any of its rights or obligations hereunder
without the prior written consent of the Collateral Agent (with the prior written consent of the Required Secured Creditors), and (iii) inure, together with the rights and remedies of the Collateral Agent hereunder, to the benefit of the Collateral
Agent, the other Secured Creditors and their respective successors, transferees and assigns. All agreements, statements, representations and warranties made by each Assignor herein or in any certificate or other instrument delivered by such Assignor
or on its behalf under this Agreement shall be considered to have been relied upon by the Secured Creditors and shall survive the execution and delivery of this Agreement and the other Secured Debt Agreements regardless of any investigation made by
the Secured Creditors or on their behalf.
  
 10.5. Headings Descriptive. The
headings of the several sections of this Agreement are inserted for convenience only and shall not in any way affect the meaning or construction of any provision of this Agreement.
  
 10.6. GOVERNING LAW; SUBMISSION TO JURISDICTION; VENUE; WAIVER OF JURY TRIAL. (a) THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE CONSTRUED IN
ACCORDANCE WITH AND BE GOVERNED BY THE LAW OF THE STATE OF NEW YORK. ANY LEGAL ACTION OR PROCEEDING WITH RESPECT TO THIS AGREEMENT OR ANY OTHER CREDIT DOCUMENT MAY BE BROUGHT IN THE COURTS OF THE STATE OF NEW YORK OR OF THE UNITED STATES FOR THE
SOUTHERN DISTRICT OF NEW YORK, AND, BY EXECUTION AND DELIVERY OF THIS AGREEMENT, EACH ASSIGNOR HEREBY IRREVOCABLY ACCEPTS FOR ITSELF AND IN RESPECT OF ITS PROPERTY, GENERALLY AND UNCONDITIONALLY, THE NON-EXCLUSIVE JURISDICTION OF THE AFORESAID
COURTS. EACH ASSIGNOR HEREBY FURTHER IRREVOCABLY WAIVES ANY CLAIM THAT ANY SUCH COURTS LACK JURISDICTION OVER SUCH ASSIGNOR, AND AGREES NOT TO PLEAD OR CLAIM IN ANY LEGAL ACTION OR PROCEEDING WITH RESPECT TO THIS AGREEMENT OR ANY OTHER CREDIT
DOCUMENT BROUGHT IN ANY OF THE AFORESAID COURTS THAT ANY SUCH COURT LACKS JURISDICTION OVER SUCH ASSIGNOR. EACH ASSIGNOR FURTHER IRREVOCABLY CONSENTS TO THE SERVICE OF PROCESS OUT OF ANY OF THE AFOREMENTIONED COURTS IN ANY SUCH ACTION OR PROCEEDING
BY THE MAILING OF COPIES THEREOF BY REGISTERED OR CERTIFIED MAIL, POSTAGE PREPAID, TO ANY SUCH ASSIGNOR AT ITS ADDRESS FOR NOTICES AS PROVIDED IN SECTION 10.1 ABOVE, SUCH SERVICE TO BECOME EFFECTIVE 30 DAYS AFTER SUCH MAILING. EACH ASSIGNOR HEREBY
IRREVOCABLY WAIVES ANY OBJECTION TO SUCH SERVICE OF PROCESS AND FURTHER IRREVOCABLY WAIVES AND AGREES NOT TO PLEAD OR CLAIM IN ANY ACTION OR PROCEEDING COMMENCED HEREUNDER OR UNDER ANY OTHER CREDIT DOCUMENT THAT SUCH SERVICE OF PROCESS WAS IN ANY
WAY INVALID OR INEFFECTIVE. NOTHING HEREIN SHALL AFFECT THE RIGHT OF THE COLLATERAL AGENT UNDER THIS AGREEMENT, OR ANY SECURED CREDITOR, TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY LAW OR TO COMMENCE LEGAL PROCEEDINGS OR OTHERWISE PROCEED
AGAINST ANY ASSIGNOR IN ANY OTHER JURISDICTION.
  
 (b) EACH ASSIGNOR HEREBY IRREVOCABLY WAIVES ANY OBJECTION WHICH IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF
ANY OF THE AFORESAID ACTIONS OR PROCEEDINGS ARISING OUT OF OR IN CONNECTION WITH THIS AGREEMENT OR ANY OTHER CREDIT DOCUMENT BROUGHT IN THE COURTS REFERRED TO IN CLAUSE (a) ABOVE AND HEREBY FURTHER IRREVOCABLY WAIVES AND AGREES NOT TO PLEAD OR CLAIM
IN ANY SUCH COURT THAT ANY SUCH ACTION OR PROCEEDING BROUGHT IN ANY SUCH COURT HAS BEEN BROUGHT IN AN INCONVENIENT FORUM.
  
 (c) EACH OF THE PARTIES TO THIS AGREEMENT HEREBY IRREVOCABLY WAIVES ALL RIGHT TO A TRIAL BY JURY IN ANY
ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR RELATING TO THIS AGREEMENT, THE OTHER CREDIT DOCUMENTS OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY.
  
 10.7. Assignors’ Duties. It is expressly agreed, anything herein contained to the
contrary notwithstanding, that each Assignor shall remain liable to perform all of the obligations, if any, assumed by it with respect to the Collateral and the Collateral Agent shall not have any obligations or liabilities with respect to any
Collateral by reason of or arising out of this Agreement, nor shall the Collateral Agent be required or obligated in any manner to perform or fulfill any of the obligations of any Assignor under or with respect to any Collateral.
  
 10.8. Termination; Release. (a) After the Termination Date, this Agreement (or, to the extent any other Security Document
requires termination or releases thereunder to occur in accordance with the provisions of this Agreement, such other Security Document) shall terminate (provided that all indemnities set forth herein including, without limitation in
Section 8.1 hereof, shall survive such termination) and the Collateral Agent (or, to the extent any other Security Document requires termination or releases thereunder to occur in accordance with the provisions of this Agreement, the collateral
agent or mortgagee under such other Security Document), at the request and expense of the respective Assignor (or, to the extent any other Security Document requires termination or releases thereunder to occur in accordance with the provisions of
this Agreement, the pledgor, transferor, mortgagor or other corresponding party under such other Security Document), will, subject to the provisions of the Intercreditor Agreement, promptly execute and deliver to such Assignor a proper instrument or
instruments (including Uniform Commercial Code termination statements on form UCC-3) acknowledging the satisfaction and termination of this Agreement, and will duly assign, transfer and deliver to such Assignor (without recourse and without any
representation or warranty) such of the Collateral as may be in the possession of the Collateral Agent or any of its sub-agents hereunder and as has not theretofore been sold or otherwise applied or released pursuant to this Agreement. As used in
this Agreement, “Termination Date” shall mean the date upon
which the Total Commitment under the Credit Agreement has been terminated, no Letter of Credit or Note (as defined in the Credit Agreement) is outstanding (and all Loans and Unpaid Drawings have been paid in full), all Letters of Credit have been
terminated, all Obligations under Secured Hedging Agreements and Treasury Services Agreements and all other Obligations (other than indemnities under the Debt Agreements which are not then due and payable) have been paid in full and all Secured
Hedging Agreements have been terminated.
  
 (b) In the event that any part of the Collateral (as defined in the Credit Agreement) is sold or otherwise disposed of
(to a Person other than a Credit Party) (x) at any time prior to the time at which all Credit Document Obligations have been paid in full and all Commitments and Letters of Credit under the Credit Agreement have been terminated, in connection with a
sale or disposition permitted by Section 10.02 of the Credit Agreement or is otherwise released at the direction of the Required Lenders (or all the Lenders if required by Section 13.12 of the Credit Agreement) or (y) at any time thereafter, to the
extent permitted by the other Secured Debt Agreements, and in the case of clauses (x) and (y), and the proceeds of such sale or disposition (or from such release) are applied in accordance with the terms of the Credit Agreement or such other Secured
Debt Agreement, as the case may be, to the extent required to be so applied, the Collateral Agent, at the request and expense of Aleris, will duly release from the security interest created hereby (or, to the extent any other Security Document
requires releases thereunder to occur in accordance with the provisions of this Agreement, from the security interest created by such other Security Document) (and will execute and deliver such documentation, including termination or partial release
statements and the like in connection therewith) and assign, transfer and deliver to Aleris, on behalf of the applicable Assignor, (without recourse and without any representation or warranty) such of the Collateral as is then being (or has been) so
sold or otherwise disposed of, or released, and as may be in the possession of the Collateral Agent (or any of its sub-agents hereunder) and has not theretofore been released pursuant to this Agreement. Furthermore, upon the release of any Guarantor
from any Guaranty in accordance with the provisions thereof or in accordance with Section 13.12(b) of the Credit Agreement, such Assignor (or, to the extent any other Security Document requires releases thereunder to occur in accordance with the
provisions of this Agreement, the assignor, grantor or pledgor under such other Security Document) (and the Collateral at such time assigned by the respective Assignor, grantor, pledgor or assignor pursuant hereto or pursuant to such other Security
Document) shall be released from this Agreement (or, to the extent any other Security Document requires releases thereunder to occur in accordance with the provisions of this Agreement, from such other Security Document).
  
 (c) At any time that an Assignor desires that the Collateral Agent take any action to acknowledge or give effect to any release of Collateral pursuant to the foregoing Section
10.8(a) or (b), such Assignor shall deliver to the Collateral Agent (and the relevant sub-agent, if any, designated hereunder) a certificate signed by a principal executive officer of such Assignor stating that the release of the respective
Collateral is permitted pursuant to such Section 10.8(a) or (b). At any time that any U.S. Borrower or the respective Assignor desires that a Subsidiary of such U.S. Borrower which has been released from the U.S. Subsidiaries Guaranty be released
hereunder as provided in the penultimate sentence of Section 10.8(b), it shall deliver to the Collateral Agent a certificate signed by a principal executive officer of such U.S. Borrower and the respective Assignor stating that the release of the
respective Assignor (and its Collateral) is permitted pursuant to such Section 10.8(b).
  
 (d) The Collateral Agent shall have no liability whatsoever to any other Secured Creditor as the result of any release
of Collateral by it in accordance with, or which the Collateral Agent believes to be in accordance with, this Section 10.8.
  
 10.9. Counterparts.
This Agreement may be executed in any number of counterparts and by the different parties hereto on separate counterparts, each of which when so executed and delivered shall be an original, but all of which shall together constitute one and the same
instrument. A set of counterparts executed by all the parties hereto shall be lodged with the Borrower and the Collateral Agent.
  
 10.10. Severability.
Any provision of this Agreement which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and
any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.
  
 10.11. The Collateral Agent and the other Secured Creditors. The Collateral Agent will hold in
accordance with this Agreement (and to the extent applicable, the Intercreditor Agreement) all items of the Collateral at any time received under this Agreement. It is expressly understood and agreed that the obligations of the Collateral Agent as
holder of the Collateral and interests therein and with respect to the disposition thereof, and otherwise under this Agreement, are only those expressly set forth in this Agreement. The Collateral Agent shall act hereunder on the terms and
conditions set forth herein and in Annex M hereto, the terms of which shall be deemed incorporated herein by reference as fully as if same were set forth herein in their entirety.
  
 10.12. Additional Assignors. It is understood and agreed that any Subsidiary Guarantor that
desires to become an Assignor hereunder, or is required to execute a counterpart of this Agreement after the Restatement Effective Date pursuant to the requirements of the Credit Agreement or any other Credit Document, shall become an Assignor
hereunder by executing a counterpart hereof and delivering same to the Collateral Agent, or by executing a joinder agreement in form and substance satisfactory to the Collateral Agent, (y) delivering supplements to Annexes A through D, inclusive,
and F through I, inclusive, hereto as are necessary to cause such Annexes to be complete and accurate with respect to such additional Assignor on such date and (z) taking all actions as specified in this Agreement as would have been taken by such
Assignor had it been an original party to this Agreement, in each case with all documents required above to be delivered to the Collateral Agent and with all documents and actions required above to be taken to the reasonable satisfaction of the
Collateral Agent.
  
 10.13. Amendment and Restatement. This Agreement shall amend and restate in its entirety the Existing U.S. Security Agreement, and all obligations of the Assignors thereunder shall be deemed replaced and
extended as obligations under this Agreement and be governed hereby without novation.
  
 10.14. Calculation of Obligations under Secured Hedging Agreements. Any calculation of obligations outstanding under a Secured Hedging Agreement for purposes of this Agreement or any other Security Document shall be (i) for purposes of the
definition of Required Secured Creditors (x) if prior to the termination of such Secured Hedging Agreement, the maximum aggregate amount (giving effect to any netting agreements) that Aleris and the Assignors would be required to pay if such Secured
Hedging Agreement were terminated at such time, but in no event should such amount with respect to the Secured Hedging Agreement entered into on the Restatement Effective Date be deemed to be less than $35,000,000 and (y) if after the termination of
such Secured Hedging Agreements, the amount which is actually due and payable by Aleris and the Assignors under such Secured Hedging Agreement at such time and (ii) for purposes of Section 7 of this Agreement, the amount which is actually due and
payable by Aleris and the Assignors under such Secured Hedging Agreement at such time.
  
 [Remainder of this page intentionally left blank;
signature page follows]
 

    

 
  
 
   
  
 
 
   
  

  
 
 
 

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

 
  Each assignor’s address is as
listed
 on Annex C attached
hereto
  
   
   

	 	 ALERIS INTERNATIONAL, INC.,
 
	 	 as
an Assignor
 
	 	 	 
	 	 	 
	 	 By:
 	 /s/ Michael Fridey
 
	 	 Name:
 	 Michael Fridey
	 	 Title:
  
 	  Executive Vice President and 
  Chief Financial Officer
 

 
 

 
 
  
 
	 	 AURORA ACQUISITION MERGER SUB,
 
	 	  INC., as an Assignor
 
 
	 	 	 
	 	 	 
	 	 By:
 	 /s/ Clive Bode
 
	 	 Name:
 	 Clive Bode
	 	 Title:
  
 	 Vice President

 
 
 
  
	 	 ALCHEM ALUMINUM, INC., as
an Assignor
  
 
	 	 ALCHEM ALUMINUM SHELBYVILLE
 INC., as an Assignor
  
 
	 	 ALERIS, INC., as an Assignor
  
 
	 	 ALERIS OHIO MANAGEMENT, INC., 
 as an Assignor
  
 
	 	ALSCO HOLDINGS, INC., as an Assignor
  
 
	 	 ALSCO METALS CORPORATION,
 as an Assignor
  
 
	 	 ALUMITECH OF CLEVELAND, INC., 
 as an Assignor
  
 
	 	 ALUMITECH OF WABASH, INC., 
 as an Assignor
  
 
	 	 ALUMITECH OF WEST VIRGINIA, INC., 
 as an Assignor
  
 
	 	 ALUMITECH, INC., as an Assignor
  
 
	 	 AWT PROPERTIES, INC., as an Assignor
  
 
	 	 CA LEWISPORT, LLC, as an Assignor
  
 
	 	 CI HOLDINGS, LLC, as an Assignor
  
 
	 	 COMMONWEALTH ALUMINUM 
 CONCAST, INC., as an Assignor
  
 
	 	 COMMONWEALTH ALUMINUM 
 LEWISPORT, LLC, as an Assignor
  
 
	 	 COMMONWEALTH ALUMINUM METALS, 
 LLC, as an Assignor
  
 
	 	 COMMONWEALTH ALUMINUM SALES 
 CORPORATION, as an Assignor
  
 
	 	 COMMONWEALTH ALUMINUM TUBE,
 ENTERPRISES, LLC, as an Assignor
  
 
	 	 COMMONWEALTH ALUMINUM, LLC, 
 as an Assignor
  
 
	 	 COMMONWEALTH FINANCING CORP., 
 as an Assignor
  
 
	 	 COMMONWEALTH INDUSTRIES, INC., 
 as an Assignor
  
 
	 	 ETS SCHAEFER CORPORATION,
 as an Assignor
  
 
	 	 GULF REDUCTION CORPORATION,
 as an Assignor
  
 
	 	 IMCO INTERNATIONAL, INC.,as
an 
 Assignor
  
 
	 	 IMCO INVESTMENT COMPANY,
 as an Assignor
  
 
	 	 IMCO RECYCLING OF CALIFORNIA, INC.,
 as an Assignor
  
 
	 	 IMCO RECYCLING OF IDAHO INC.,
 as an Assignor
  
 
	 	 IMCO RECYCLING OF ILLINOIS INC.,
 as an Assignor
  
 
	 	 IMCO RECYCLING OF INDIANA INC.,
 as an Assignor
  
 
	 	 IMCO RECYCLING OF MICHIGAN L.L.C.,
 as an Assignor
  
 
	 	 IMCO RECYCLING OF OHIO INC.,
 as an Assignor
  
 
	 	 IMCO RECYCLING OF UTAH INC.,
 as an Assignor
  
 
	 	 IMCO RECYCLING SERVICES COMPANY,
 as an Assignor
  
 
	 	 IMSAMET, INC., as an Assignor
  
 
	 	 ALERIS BLANKING AND RIM PRODUCTS,
 INC. (f/k/a INDIANA ALUMINUM INC.),
 as an Assignor
  
 
	 	 INTERAMERICAN ZINC, INC., as an 
 Assignor
  
 
	 	 METALCHEM, INC., as an Assignor
  
 
	 	 MIDWEST ZINC CORPORATION,
 as an Assignor
  
 
	 	 ROCK CREEK ALUMINUM, INC.,
 as an Assignor
  
 
	 	 SILVER FOX HOLDING COMPANY,
 as an Assignor
  
 
	 	 U.S. ZINC CORPORATION,
 as an Assignor
  
 
	 	 U.S. ZINC EXPORT CORPORATION,
 as an Assignor
  
 
	 	 WESTERN ZINC CORPORATION,
 as an Assignor
  
 

 
 
  
 
	 	 	 
	 	 	 
	 	 By:
 	 /s/  Michael D. Fridey
 
	 	 Name:
 	 Michael D. Fridey
	 	 Title:
  
 	 Director

 
  
 
    
 
   
  
 

   
 
 
  
  
 
	 	 IMCO INDIANA PARTNERSHIP L.P.,
 
	 	 By: IMCO International, Inc. its General
 
	 	 Partner,
 
	 	 as
an Assignor
 
	 	 	 
	 	 	 
	 	 By:
 	 /s/  Michael D. Fridey
 
	 	 Name:
 	 Michael D. Fridey
	 	 Title:
  
 	 President

 
 

  
 
	 	 IMCO MANAGEMENT PARTNERSHIP, L.P.,
 
	 	 By: Aleris International, Inc. its General
 
	 	 Partner,
 
	 	 as
an Assignor
 
	 	 	 
	 	 	 
	 	 By:
 	 /s/  Michael D. Fridey
 
	 	 Name:
 	 Michael D. Fridey
	 	 Title:
  
 	  Executive Vice President and
  Chief Financial Officer
 

 
 

  
 

    
 
   
  
 
 
   
 
 
  
 

 
	 	 CORUS ALUMINUM CORP., as an Assignor
 
	 	 
	 	 HOOGOVENS ALUMINUM EUROPE INC.,
 
	 	 as
an Assignor
 
	 	 	 
	 	 	 
	 	 By:
 	 /s/  Michael D. Fridey
 
	 	 Name:
 	 Michael D. Fridey
	 	 Title:
  
 	 Director

 
 

  
    
 
   
  
 
 
   
 
 
 

 
  Accepted and Agreed to:
  
 
	 DEUTSCHE BANK AG NEW YORK BRANCH,
 	 
	 As Collateral Agent 
 	 
	 	 
	 	 
	 	 	 
	 	 	 
	 By:
 	 /s/ Carin Keegan
 	 
	     Name:  Carin Keegan
 	 	 
	     Title:    Vice President
  
 	 	 

 
 

  
 
	 By:
 	 /s/ Scottye Lindsey
 	 
	     Name:    Scottye Lindsey
 	 	 

 
  
	     Title:     Director
 	 

 
 
  
Accepted and Agreed to:
  
 
	 DEUTSCHE BANK AG NEW YORK BRANCH,
 	 
	 As Administrative Agent 
 	 
	 	 
	 	 
	 	 	 
	 	 	 
	 By:
 	 /s/ Carin Keegan
 	 
	     Name:  Carin Keegan
 	 	 
	     Title:    Vice President
  
 	 	 

 
 

  
 
	 By:
 	 /s/ Scottye Lindsey
 	 
	     Name:    Scottye Lindsey
 	 	 

 
 
  
	     Title:     DirectorAmended and Restated U.S. Pledge Agreement, dated as of 12/19/2006

 
 Exhibit 10.5
  
 EXECUTION COPY
  
  
 AMENDED AND
RESTATED U.S. PLEDGE AGREEMENT
  
 AMENDED AND RESTATED U.S. PLEDGE AGREEMENT, dated as of
August 1, 2006 and amended and restated as of December 19, 2006 (as the same may be amended, restated, modified and/or supplemented from time to time, this “Agreement”) among each of the undersigned pledgors (each, a “Pledgor” and, together with any other entity that becomes a pledgor hereunder
pursuant to Section 30 hereof, the “Pledgors”) and DEUTSCHE
BANK AG NEW YORK BRANCH., as collateral agent (together with any successor collateral agent, the “Pledgee”), for the benefit of the Secured Creditors (as defined below). Except as otherwise defined herein, all capitalized terms used herein and defined in the Credit Agreement
(as defined below) shall be used herein as therein defined.
  
 WITNE SSETH:
  
 WHEREAS, Aurora Acquisition Merger Sub, Inc., Aleris International, Inc., a Delaware corporation (“Aleris”), each Subsidiary of Aleris party thereto from time to time, the lenders
party thereto from time to time, (the “Lenders”), Deutsche
Bank AG New York Branch, as administrative agent (together with any successor administrative agent, the “Administrative Agent”), and Deutsche Bank AG, Canada Branch, as Canadian administrative agent (together with any successor Canadian administrative agent, the “Canadian Administrative Agent”) (the Lenders, each Issuing Lender, the
Administrative Agent, the Canadian Administrative Agent and the Collateral Agent are herein called the “Lender Creditors”) have entered into an Amended and Restated Credit Agreement, dated as of August 1, 2006 and amended and restated as of the date hereof, providing for the making and
continuation of Loans to the Borrowers and the issuance of, and participation in, Letters of Credit for the account of the Borrowers, all as contemplated therein (as used herein, the term “Credit Agreement” means the Amended and Restated Credit Agreement described above
in this paragraph, as the same may be amended, modified, extended, renewed, replaced, restated, supplemented or refinanced from time to time, and including any agreement extending the maturity of, or refinancing or restructuring (including, but not
limited to, the inclusion of additional borrowers or guarantors thereunder or any increase in the amount borrowed) all or any portion of, the indebtedness under such agreement or any successor agreement, whether or not with the same agent, trustee,
representative, lenders or holders; provided that, with respect to any
agreement providing for the refinancing or replacement of indebtedness under the Credit Agreement, such agreement shall only be treated as, or as part of, the Credit Agreement hereunder if (i) either (A) all obligations under the Credit Agreement
being refinanced or replaced shall be paid in full at the time of such refinancing or replacement, and all commitments and letters of credit issued pursuant to the refinanced or replaced Credit Agreement shall have terminated in accordance with
their terms or, with respect to certain Letters of Credit, been continued, with the consent of the respective issuer thereof, under such refinancing or replacement indebtedness or (B) the Required Lenders shall have consented in writing to the
refinancing or replacement indebtedness being treated as indebtedness pursuant to the Credit Agreement, and (ii) a notice to the effect that the refinancing or replacement indebtedness shall be treated as issued under the Credit Agreement shall be
delivered by Aleris to the Collateral Agent);
  
 WHEREAS, each Borrower and/or one or more of its
Subsidiaries may at any time and from time to time enter into one or more Secured Hedging Agreements with one or more Persons other than the Borrowers or their Subsidiaries (the “Other Creditors”);
  
 WHEREAS, each Borrower, one or more of their respective Subsidiaries and any bank (and/or one or more of its banking affiliates) reasonably acceptable to
the Administrative Agent, in each case designated to the Administrative Agent in writing by Aleris as a provider of Treasury Services (as defined below), (collectively, the “Treasury Service Creditors” and, together with the Lender Creditors and the Other
Creditors, the “Secured Creditors”) in the future may enter
into, credit arrangements providing for treasury, depositary or cash management services (including without limitation, overnight overdraft services) to Aleris and such Subsidiaries by the Treasury Service Creditors, and automated clearinghouse
transfers of funds to the Treasury Service Creditors, in each case pursuant to uncommitted lines of credit (collectively, “Treasury Services,” and with any written agreement evidencing such credit arrangements (to the extent expressly stated therein that the liabilities and indebtedness thereunder are
“Obligations” for the purposes of this Agreement), as amended, modified, supplemented, replaced or refinanced from time to time, herein called a “Treasury Services Agreement”);
  
 WHEREAS, pursuant to the U.S. Borrower Guaranty, each of the U.S. Borrowers has guaranteed to the Secured Creditors the payment when due of all of its
Relevant Guaranteed Obligations as described therein;
  
 WHEREAS, pursuant to the U.S. Subsidiaries Guaranty, each
U.S. Subsidiary Guarantor has jointly and severally guaranteed to the Secured Creditors the payment when due of all Guaranteed Obligations (as defined in the U.S. Subsidiaries Guaranty);
  
 WHEREAS, the Intercreditor Agreement governs the relative rights and priorities of the Secured Creditors and the Term Secured Parties in respect of the Term
Priority Collateral and the ABL Priority Collateral;
  
 WHEREAS, it is a condition precedent to (i) the making of
Loans to the Borrowers, and the issuance, and participation in, Letters of Credit for the respective accounts of the Borrowers under the Credit Agreement, (ii) the Other Creditors entering into Secured Hedging Agreements and (iii) the maintenance
and/or extension of the Treasury Services by Treasury Service Creditors that each Pledgor shall have executed and delivered to the Pledgee this Agreement;
  
 WHEREAS, each Pledgor has obtained and will continue to obtain benefits from the incurrence of Loans by the Borrowers and the issuance of, and participation
in, Letters of Credit for the respective accounts of the Borrowers under the Credit Agreement and the entering into by the Borrowers and/or one or more of their respective Subsidiaries of Secured Hedging Agreements and, accordingly each Pledgor,
desires to execute this Agreement in order to (i) satisfy the condition described in the preceding paragraph and (ii) to induce (x) the Lenders to make Loans to the
Borrowers and issue, and/or participate in, Letters of Credit for the respective accounts of the Borrowers and the Other Creditors to enter into Secured Hedging Agreements with the Borrowers and/or one or more of their respective
Subsidiaries;
  
 NOW, THEREFORE, in consideration of the foregoing and
other benefits accruing to each Pledgor, the receipt and sufficiency of which are hereby acknowledged, each Pledgor hereby makes the following representations and warranties to the Pledgee for the benefit of the Secured Creditors and hereby
covenants and agrees with the Pledgee for the benefit of the Secured Creditors as follows:
  
 1. SECURITY FOR OBLIGATIONS. Subject to the terms of the Intercreditor Agreement with respect to rights and remedies
between the Collateral Agent and the Term Collateral Agent, this Agreement is made by each Pledgor for the benefit of the Secured Creditors to secure:
  
 (i) the full and prompt payment when due (whether at stated maturity, by acceleration or otherwise) of all obligations, liabilities and indebtedness (including, without limitation,
unpaid principal (or Face Amount, as applicable), premium, interest (including, without limitation, all interest that accrues after the commencement of any case, proceeding or other action relating to the bankruptcy, insolvency, reorganization or
similar proceeding of any Pledgor or any Subsidiary thereof at the rate provided for in the respective documentation, whether or not a claim for post-petition interest is allowed in any such proceeding) and reimbursement obligations under Letters of
Credit, fees, costs and indemnities) of such Pledgor owing to the Secured Creditors, whether now existing or hereafter incurred under, arising out of, or in connection with, the Credit Agreement and the other Credit Documents to which such Pledgor
is a party (including, in the event such Pledgor is a Guarantor, all such obligations, liabilities and indebtedness of such Pledgor under its Guaranty) and the due performance and compliance by such Pledgor with all of the terms, conditions and
agreements contained in the Credit Agreement and in such other Credit Documents (all such obligations, liabilities and indebtedness under this clause (i), except to the extent consisting of obligations, liabilities or indebtedness with respect to
Secured Hedging Agreements or Treasury Services Agreements, entitled to the benefits of this Agreement being herein, collectively, the “Credit Document
Obligate”);
  

(ii) the full and prompt payment when due (whether at stated maturity, by acceleration or otherwise) of all obligations,
liabilities and indebtedness (including, without limitation, all interest that accrues after the commencement of any case, proceeding or other action relating to the bankruptcy, insolvency, reorganization or similar proceeding of any Pledgor at the
rate provided for in the respective documentation, whether or not a claim for post-petition interest is allowed in any such proceeding) owing by such Pledgor to the Other Creditors now existing or hereafter incurred under, arising out of or in
connection with any Secured Hedging Agreement, whether such Secured Hedging Agreement is now in existence or hereinafter arising (including, in the case of a Pledgor that is a Guarantor, all obligations, liabilities and indebtedness of such Pledgor
under its Guaranty in respect of the Secured Hedging Agreements), and the due performance and compliance by such Pledgor with all of the terms, conditions and
agreements contained in each such Interest Rate Protection Agreement (all such obligations, liabilities and indebtedness under this clause (ii) being herein collectively called the “Other Obligations”);
  
 (iii) the full and prompt payment when due (whether at the stated maturity, by required prepayment, declaration, acceleration, demand or otherwise) of all obligations, liabilities and
indebtedness (including, without limitation, all interest that accrues after the commencement of any case, proceeding or other action relating to the bankruptcy, insolvency, reorganization or similar proceeding at the rate provided for in the
respective documentation, whether or not such interest is allowed in any such proceeding) owing by Aleris or any of its Subsidiaries to each Treasury Service Creditor with respect to Treasury Services, whether now in existence or hereafter arising
in each case under any Treasury Services Agreement (all such obligations, liabilities and indebtedness described in this clause (iii) being herein collectively called the “Treasury Service Obligations”);
  
 (iv) any and all sums advanced by the Pledgee in order to preserve the Collateral (as hereinafter defined) or preserve its security interest in the Collateral;
  
 (v) in the event of any proceeding for the collection or enforcement of any indebtedness, obligations, or liabilities of such Pledgor referred to in clauses (i) through (iii) above,
after an Event of Default shall have occurred and be continuing, the reasonable expenses of retaking, holding, preparing for sale or lease, selling or otherwise disposing of or realizing on the Collateral, or of any exercise by the Pledgee of its
rights hereunder, together with reasonable attorneys’ fees and court costs;
  
 (vi) all amounts paid by any Indemnitee as to which such Indemnitee has the right to reimbursement under Section 11 of
this Agreement; and
  
 (vii) all amounts owing to any Agent or any of its affiliates pursuant to any of the Credit Documents in its capacity as
such.
  
 All such obligations, liabilities, indebtedness, sums and
expenses set forth in clauses (i) through (vii) of this Section 1 being herein collectively called the “Obligations”, it being acknowledged and agreed that the “Obligations” shall, subject to the immediately succeeding sentence, include extensions of credit of the types
described above, whether outstanding on the date of this Agreement or extended from time to time after the date of this Agreement.
  
 NOTWITHSTANDING ANYTHING
HEREIN TO THE CONTRARY, THE LIENS AND SECURITY INTERESTS GRANTED TO THE ABL COLLATERAL AGENT PURSUANT TO THIS AGREEMENT IN ANY TERM PRIORITY COLLATERAL AND THE EXERCISE OF ANY RIGHT OR REMEDY BY THE ABL COLLATERAL AGENT WITH RESPECT TO ANY TERM
PRIORITY COLLATERAL HEREUNDER ARE SUBJECT TO THE PROVISIONS OF THE AMENDED AND RESTATED INTERCREDITOR AGREEMENT, DATED AS OF AUGUST 1, 2006 AND AMENDED AND RESTATED AS OF DECEMBER 19, 2006 (AS AMENDED, RESTATED, SUPPLEMENTED OR OTHERWISE MODIFIED
FROM TIME TO TIME, THE “INTERCREDITOR AGREEMENT”), AMONG
AURORA ACQUISITION MERGER SUB, INC., ALERIS INTERNATIONAL, INC., A DELAWARE CORPORATION (THE “COMPANY”), THE OTHER GRANTORS FROM TIME TO TIME PARTY THERETO, DEUTSCHE BANK AG NEW YORK BRANCH, (“DBNY”) AS ABL COLLATERAL AGENT AND TERM COLLATERAL AGENT, AND CERTAIN OTHER
PERSONS PARTY OR THAT MAY BECOME PARTY THERETO FROM TIME TO TIME. IN THE EVENT OF
ANY CONFLICT BETWEEN THE TERMS OF THE INTERCREDITOR AGREEMENT AND THIS AGREEMENT, THE TERMS OF THE INTERCREDITOR AGREEMENT SHALL GOVERN AND CONTROL.
  
 2. DEFINITIONS. (a) Unless otherwise defined herein, all capitalized terms used herein and defined in the Credit Agreement shall be used herein as therein defined. Reference to
singular terms shall include the plural and vice versa.
  
 (b) The following capitalized terms used herein shall have the definitions specified below:
  
 “ABL Priority Collateral” shall have the meaning set forth in the Intercreditor Agreement.
  
 “Administrative Agent” shall have the meaning set forth in the recitals hereto. 
  
 “Adverse Claim” shall have the meaning given such term in Section 8-102(a)(1) of the UCC.
  
 “Agreement” shall have the meaning set forth in the recitals hereto.
  
  “Aleris” shall have the meaning set forth in the recitals hereto. 
  
 “Borrower” and “Borrowers” shall have the meaning set forth in the recitals hereto.

 
 “Canadian Borrower” shall have the meaning set forth in the recitals hereto.
  
 “Certificated Security” shall have the meaning given such term in Section 8-102(a)(4) of the UCC.
  
 “Clearing Corporation” shall have the meaning given such term in Section 8-102(a)(5) of the UCC.
  
 “Collateral” shall have the meaning set forth in Section 3.1 hereof.
  
 “Collateral Accounts” shall mean any and all accounts established and maintained
by the Pledgee in the name of any Pledgor to which Collateral may be credited.
  
 “Credit Agreement” shall have the meaning set forth in the recitals
hereto.
  
 “Credit Document Obligations” shall have the meaning set forth in Section 1
hereof.
  
 “Credit Documents” shall have the meaning provided in the Credit Agreement and
shall include any documentation executed and delivered in connection with any replacement or refinancing of the Credit Agreement.
  
 “Discharge of Term Obligations” shall have the meaning provided in the
Intercreditor Agreement.
  
 “Domestic Corporation” shall have the meaning set forth in the definition of
“Stock”.
  
 “Event of Default” shall mean (i) at any time when any Credit Document Obligations
or Letters of Credit are outstanding or any Commitments under the Credit Agreement exist, any Event of Default under, and as defined in the Credit Agreement and (ii) at any time after all of the Credit Document Obligations have been paid in full and
all Commitments under the Credit Agreement have been terminated and no further Commitments and Letters of Credit may be provided thereunder, any payment default on any of the Obligations after the expiration of any applicable grace
period.
  
 “Excess Foreign Corporation Voting Equity Interests” shall have the meaning
provided in Section 3.1.
  
 “Financial Asset” shall have the meaning given such term in Section 8-102(a)(9) of
the UCC.
  
 “Foreign Corporation” shall have the meaning set forth in the definition of
“Stock”.
  
 “Indemnitees” shall have the meaning set forth in Section 11 hereof.

 
 “Instrument” shall have the meaning given such term in Section 9-102(a)(47) of the UCC.
  
 “Investment Property” shall have the meaning given such term in Section 9-102(a)(49) of the UCC.
  
 “Lender Creditors” shall have the meaning set forth in the recitals hereto.
  
 “Lenders” shall have the meaning set forth in the recitals hereto.
  
 “Limited Liability Company Assets” shall mean all assets, whether tangible or intangible and whether real, personal or mixed (including, without limitation, all limited liability company capital and
interest in other limited liability companies), at any time owned by any Pledgor and represented by any Limited Liability Company Interest.
  
 “Limited Liability Company Interests” shall mean the entire limited liability company interest at any time owned by any Pledgor in any limited liability company.
  
 “Location” of any Pledgor shall mean such Pledgor’s “location” as determined pursuant to Section 9-307 of the UCC.
  
 “Non-Voting Equity Interests” shall mean all Equity Interests of any Person which are not Voting Equity Interests.
  
 “Noticed Event of Default” shall mean (i) an Event of Default under Section 11.01 or 11.05 of the Credit Agreement and (ii) any other Event of Default in respect of which the Pledgee has given
Aleris notice that such Event of Default constitutes a “Noticed Event of Default”.
  
 “Notes” shall mean (x) all intercompany notes at any time issued to each Pledgor
and (y) all other promissory notes from time to time issued to, or held by, each Pledgor.
  
 “Obligations” shall have the meaning set forth in Section 1 hereof.

 
 “Other Creditors” shall have the meaning set forth in the recitals hereto.
  
 “Other Obligations” shall have the meaning set forth in the recitals hereto.
  
 “Partnership Assets” shall mean all assets, whether tangible or intangible and whether real, personal or mixed (including, without limitation, all partnership capital and interest in other
partnerships), at any time owned by any Pledgor or represented by any Partnership Interest.
  
 “Partnership Interest” shall mean the entire general partnership interest or
limited partnership interest at any time owned by any Pledgor in any general partnership or limited partnership.
  
 “Pledged Notes” shall mean all Notes at any time pledged or required to be pledged
hereunder.
  
 “Pledgee” shall have the meaning set forth in the first paragraph
hereof.
  
  “Pledgor” shall have the meaning set forth in the first paragraph hereof. 
  
“Proceeds” shall have the meaning given such term in Section 9-102(a)(64) of the UCC.
  
 “Registered Organization” shall have the meaning given such term in Section 9-102(a)(70) of the UCC.
  
 “Required Secured Creditors” shall have the meaning provided in the U.S. Security Agreement.
  
 “Secured Creditors” shall have the meaning set forth in the recitals hereto.
  
 “Secured Debt Agreements” shall mean and include (w) this Agreement, (x) the other Credit Documents, (y) the Secured Hedging Agreements entered into with any Other Creditors and (z) the Treasury
Services Agreements entered into with any Treasury Services Creditors.
  
 “Secured Hedging Agreement” shall mean each Interest Rate Protection Agreement
and/or Other Hedging Agreements provided that (i) such Interest Rate
Protection Agreement and/or Other Hedging Agreement expressly states that (x) it constitutes a “Secured Hedging Agreement” for purposes of the Credit Agreement and the other Credit Documents and (y) does not constitute a “Secured
Hedging Agreement” for purposes of the Term Security Documents or any guaranties relating to the Term Loan Agreement, (ii) Aleris and the other parties thereto shall have delivered to the Collateral Agent a written notice specifying that such
Interest Rate Protection Agreement and/or Other Hedging Agreement (x) constitutes a “Secured Hedging Agreement” for purposes of the Credit Agreement and the other Credit Documents, (y) does not constitute a “Secured Hedging
Agreement” for purposes of the Term Security Documents or any guaranties relating to the Term Loan Agreement and (z) in the case of Aleris, that such Interest Rate Protection Agreement and/or Other Hedging Agreement and the obligations of
Aleris and its Subsidiaries thereunder have been, and will be, incurred in compliance with the Credit Agreement, (iii) on the effective date of such Interest Rate Protection Agreement and/or Other Hedging Agreement and from time to time thereafter,
at the request of the Collateral Agent, Aleris and the other parties thereto shall have notified the Administrative Agent in writing of the aggregate amount of exposure under such Interest Rate Protection Agreement and/or Other Hedging Agreement and
(iv) such Other Creditor, if it is not a Lender or an affiliate thereof (even if such Lender subsequently ceases to be a Lender under the Credit Agreement for any reason), has entered into an intercreditor agreement with respect to the relevant
Interest Rate Protection Agreement or Other Hedging Agreement on terms reasonably satisfactory to the Collateral Agent.
  
 “Securities Account” shall have the meaning given such term in Section 8-501(a) of
the UCC.
  
 “Securities Act” shall mean the Securities Act of 1933, as amended, as in effect
from time to time.
  
 “Securities Intermediary” shall have the meaning given such term in Section
8-102(14) of the UCC.
  
 “Security” and “Securities” shall have the meaning given such term in Section 8-102(a)(15) of the
UCC and shall in any event also include all Stock.
  
 “Security Entitlement” shall have the meaning given such term in Section
8-102(a)(17) of the UCC.
  
 “Stock” shall mean (x) with respect to corporations incorporated under the laws of
the United States or any State or territory thereof or the District of Columbia (each, a “Domestic Corporation”), all of the issued and outstanding shares of capital stock of any Domestic Corporation at any time owned by any Pledgor and (y) with respect to corporations which are
not Domestic Corporations (each, a “Foreign Corporation”), all
of the issued and outstanding shares of capital stock or other Equity Interests of any Foreign Corporation at any time owned by any Pledgor.
  
 “Termination Date” shall have the meaning set forth in Section 20 hereof.
  
 “Term Collateral Agent” shall have the meaning set forth in the Intercreditor
Agreement.
  
 “Term Documents” shall have the meaning set forth in the Intercreditor
Agreement.
  
 “Term Obligations” shall have the meaning set forth in the Intercreditor
Agreement.
  
 “Term Pledge Agreement” shall have the meaning set forth in the Intercreditor
Agreement.
  
 “Term Secured Parties” shall have the meaning set forth in the Intercreditor
Agreement.
  
 “Transmitting Utility” has the meaning given such term in Section 9-102(a)(80) of
the UCC.
  
 “Term Priority Collateral” shall have the meaning set forth in the Intercreditor
Agreement.
  
 “TL Credit Document Obligations Termination Date” shall mean the date on which the
Discharge of Term Obligations shall have occurred.
  
 “UCC” shall mean the Uniform Commercial Code as in effect in the State of New York
from time to time; provided that all references herein to specific
Sections or subsections of the UCC are references to such Sections or subsections, as the case may be, of the Uniform Commercial Code as in effect in the State of New York on the Effective Date; provided, further, that if by reason of mandatory provisions of law, the perfection, the effect of perfection or non-perfection or the priority of the Liens of the Pledgee in any Collateral is
governed by the Uniform Commercial Code as in effect in a jurisdiction other than New York, “UCC” shall mean the Uniform Commercial Code as in effect in such other jurisdiction for purposes of the provisions hereof relating to such perfection, effect of perfection or
non-perfection or priority.
  
 “Uncertificated Security” shall have the meaning given such term in Section
8-102(a)(18) of the UCC.
  
 “U.S. Borrower” shall have the meaning set forth in the recitals
hereto.
  
 “Voting Equity Interests” of any Person shall mean all classes of Equity Interests
of such Person entitled to vote.
  
 3. PLEDGE OF SECURITIES, ETC.
  
 3.1 Pledge. (i) To secure the Obligations now or hereafter owed or to be performed by such
Pledgor (but subject to clause (x) of the proviso at the end of this Section 3.1 in the case of Voting Equity Interests of Foreign Corporations pledged hereunder), each Pledgor does hereby grant and pledge to the Pledgee for the benefit of the
Secured Creditors, and does hereby create a continuing security interest (subject to those Liens permitted to exist with respect to the Collateral pursuant to the terms of all Secured Debt Agreements then in effect) in favor of the Pledgee for the
benefit of the Secured Creditors in, all of its right, title and interest in and to the following, whether now existing or hereafter from time to time acquired (collectively, the “Collateral”):
  
 (a) each of the Collateral Accounts (to the extent a security interest therein is not created pursuant to the U.S. Security Agreement), including any and all assets of whatever type
or kind deposited by such Pledgor in any such Collateral Account, whether now owned or hereafter acquired, existing or arising, including, without limitation, all Financial Assets, Investment Property, monies, checks, drafts, Instruments, Securities
or interests therein of any type or nature deposited or required by the Credit Agreement or any other Secured Debt Agreement to be deposited in such Collateral Account, and all investments and all certificates and other Instruments (including
depository receipts, if any) from time to time representing or evidencing the same, and all dividends, interest, distributions, cash and other property from time to time received, receivable or otherwise distributed in respect of or in exchange for
any or all of the foregoing;
  
 (b) all Securities owned or held by such Pledgor from time to time and all options and warrants owned by such Pledgor
from time to time to purchase Securities;
  
 (c) all Notes owned or held by such Pledgor from time to time;
  
 (d) all Limited Liability Company Interests owned by such Pledgor from time to time and all of its right, title and interest in each limited liability company to which each such
Limited Liability Company Interest relates, whether now existing or hereafter acquired, including, without limitation, to the fullest extent permitted under the terms and provisions of the documents and agreements governing such Limited Liability
Company Interests and applicable law:
  
 (A) all its capital therein and its interest in all profits, income, surpluses, losses, Limited Liability Company Assets
and other distributions to which such Pledgor shall at any time be entitled in respect of such Limited Liability Company Interests;
  
 (B) all other payments due or to become due to such Pledgor in respect of Limited Liability Company Interests,
whether under any limited liability company agreement or otherwise, whether as contractual obligations, damages, insurance proceeds or otherwise;
  
 (C) all of its claims, rights, powers, privileges, authority, options, security interests, liens and remedies, if any, under any limited liability company agreement or operating
agreement, or at law or otherwise in respect of such Limited Liability Company Interests;
  
 (D) all present and future claims, if any, of such Pledgor against any such limited liability company for monies loaned
or advanced, for services rendered or otherwise;
  
 (E) all of such Pledgor’s rights under any limited liability company agreement or operating agreement or at law to
exercise and enforce every right, power, remedy, authority, option and privilege of such Pledgor relating to such Limited Liability Company Interests, including any power to terminate, cancel or modify any such limited liability company agreement or
operating agreement, to execute any instruments and to take any and all other action on behalf of and in the name of any such Pledgor in respect of such Limited Liability Company Interests and any such limited liability company, to make
determinations, to exercise any election (including, but not limited to, election of remedies) or option or to give or receive any notice, consent, amendment, waiver or approval, together with full power and authority to demand, receive, enforce,
collect or receipt for any of the foregoing or for any Limited Liability Company Asset, to enforce or execute any checks, or other instruments or orders, to file any claims and to take any action in connection with any of the foregoing;
and
  
 (F) all other property hereafter delivered in substitution for or in addition to any of the foregoing, all certificates
and instruments representing or evidencing such other property and all cash, securities, interest, dividends, rights and other property at any time and from time to time received, receivable or otherwise distributed in respect of or in exchange for
any or all thereof;
  
 (e) all Partnership Interests owned by such Pledgor from time to time and all of its right, title and interest in each
partnership to which each such Partnership Interest relates, whether now existing or hereafter acquired, including, without limitation, to the fullest extent permitted under the terms and provisions of the documents and agreements governing such
Partnership Interests and applicable law:
  
 (A) all its capital therein and its interest in all profits, income, surpluses, losses, Partnership Assets and other
distributions to which such Pledgor shall at any time be entitled in respect of such Partnership Interests;
  
 (B) all other payments due or to become due to such Pledgor in respect of Partnership Interests, whether under
any partnership agreement or otherwise, whether as contractual obligations, damages, insurance proceeds or otherwise;
  
 (C) all of its claims, rights, powers, privileges, authority, options, security interests, liens and remedies,
if any, under any partnership agreement or operating agreement, or at law or otherwise in respect of such Partnership Interests;
  
 (D) all present and future claims, if any, of such Pledgor against any such partnership for monies loaned or
advanced, for services rendered or otherwise;
  
 (E) all of such Pledgor’s rights under any partnership agreement or operating agreement or at law to exercise and
enforce every right, power, remedy, authority, option and privilege of such Pledgor relating to such Partnership Interests, including any power to terminate, cancel or modify any partnership agreement or operating agreement, to execute any
instruments and to take any and all other action on behalf of and in the name of such Pledgor in respect of such Partnership Interests and any such partnership, to make determinations, to exercise any election (including, but not limited to,
election of remedies) or option or to give or receive any notice, consent, amendment, waiver or approval, together with full power and authority to demand, receive, enforce, collect or receipt for any of the foregoing or for any Partnership Asset,
to enforce or execute any checks, or other instruments or orders, to file any claims and to take any action in connection with any of the foregoing; and
  
 (F) all other property hereafter delivered in substitution for or in addition to any of the foregoing, all certificates and instruments representing or evidencing such other property
and all cash, securities, interest, dividends, rights and other property at any time and from time to time received, receivable or otherwise distributed in respect of or in exchange for any or all thereof;
  
 (f) all Financial Assets and Investment Property owned by such Pledgor from time to time;
  
 (g) all Security Entitlements owned by such Pledgor from time to time in any and all of the foregoing; and
  
 (h) all Proceeds of any and all of the foregoing;
  
 provided that (x) no Voting Equity Interests (which shall include, for this purpose,
the Convertible Preferred Equity Certificates issued by Aleris Luxembourg S.à.r.l.) of any Foreign Corporation which represents more than 65% of the total combined voting power of all classes of Voting Equity Interests of the respective Foreign
Corporation (with all Voting Equity Interests of the respective Foreign Corporation in excess of said 65% limit being herein called “Excess Foreign
Corporation Equity Interests”), shall secure any direct Obligations of any U.S. Borrower or any of its Domestic Subsidiaries (or guarantees of such
Obligations by the respective Pledgor) and such Excess Foreign Corporation Equity Interests shall secure Obligations of the respective Pledgor only as a guarantor of the Obligations of the Canadian Borrowers, the European Borrower and their
Subsidiaries, (y) each Pledgor shall be required to pledge hereunder 100% of the Non-Voting Equity Interests of each Foreign Corporation at any time and from time to time acquired by such Pledgor, which Non-Voting Equity Interests shall not be
subject to the limitations described in preceding clause (x) and (z) notwithstanding anything to the contrary contained in this Section 3.1 or elsewhere in this Agreement, each Pledgor and the Pledgee (on behalf of the Secured Creditors)
acknowledges and agrees that:
  
 (i) the security interest granted pursuant to this Agreement (including pursuant to this Section 3.1) to the Pledgee for
the benefit of the Secured Creditors (A) in the ABL Priority Collateral, shall be a First Priority Lien and (B) in the TL Priority Collateral, shall be a Second Priority Lien in the TL Priority Collateral fully junior, subordinated and subject to
the security interest granted to the Term Collateral Agent for the benefit of the Term Secured Parties in the TL Priority Collateral on the terms and conditions set forth in the Term Documents and the Intercreditor Agreement and all other rights and
benefits afforded hereunder to the Secured Creditors with respect to the TL Priority Collateral are expressly subject to the terms and conditions of the Intercreditor Agreement; and
  
 (ii) the Secured Creditors’ security interests in the Collateral constitute security interests separate and apart (and of a different class and claim)
from the Term Secured Parties’ security interests in the Collateral.
  
 3.2 Procedures. (a) To the
extent that any Pledgor at any time or from time to time owns, acquires or obtains any right, title or interest in any Collateral, such Collateral shall automatically (and without the taking of any action by such Pledgor) be pledged pursuant to
Section 3.1 of this Agreement and, in addition thereto (but subject to the terms of the Intercreditor Agreement), such Pledgor shall (to the extent provided below and not inconsistent with the terms of the Intercreditor Agreement) take the following
actions as set forth below (as promptly as practicable and, in any event, within 10 days after it obtains such Collateral) for the benefit of the Pledgee and the other Secured Creditors:
  
 (i) with respect to a Certificated Security (other than a Certificated Security credited on the books of a Clearing Corporation or Securities Intermediary), such Pledgor shall
physically deliver such Certificated Security to the Pledgee, endorsed to the Pledgee or endorsed in blank;
  
 (ii) with respect to an Uncertificated Security (other than an Uncertificated Security credited on the books of
a Clearing Corporation or Securities Intermediary), such Pledgor shall cause the issuer of such Uncertificated Security to duly authorize, execute, and deliver to the Pledgee, an agreement for the benefit of the Pledgee and the other Secured
Creditors substantially in the form of Annex G hereto (appropriately completed to the satisfaction of the Pledgee and with such modifications, if any, as shall be satisfactory to the Pledgee) pursuant to which such issuer agrees to comply with any
and all instructions originated by the Pledgee without further consent by the registered owner and not to comply with instructions regarding such Uncertificated Security (and any Partnership Interests and Limited Liability Company Interests issued
by such issuer) originated by any other Person other than a court of competent jurisdiction;
  
 (iii) with respect to a Certificated Security, Uncertificated Security, Partnership Interest or Limited Liability Company
Interest credited on the books of a Clearing Corporation or Securities Intermediary (including a Federal Reserve Bank, Participants Trust Company or The Depository Trust Company), such Pledgor shall promptly notify the Pledgee thereof and shall
promptly take (x) all actions required (i) to comply with the applicable rules of such Clearing Corporation or Securities Intermediary and (ii) to perfect the
security interest of the Pledgee under applicable law (including, in any event, under Sections 9-314(a), (b) and (c), 9-106 and 8-106(d) of the UCC) and (y) such other actions as the Pledgee deems necessary or desirable to effect the
foregoing;
  
 (iv) with respect to a Partnership Interest or a Limited Liability Company Interest (other than a Partnership Interest or
Limited Liability Company Interest credited on the books of a Clearing Corporation or Securities Intermediary), (1) if such Partnership Interest or Limited Liability Company Interest is represented by a certificate and is a Security for purposes of
the UCC, the procedure set forth in Section 3.2(a)(i) hereof, and (2) if such Partnership Interest or Limited Liability Company Interest is not represented by a certificate or is not a Security for purposes of the UCC, the procedure set forth in
Section 3.2(a)(ii) hereof;
  
 (v) with respect to any intercompany Note or any other Note evidencing a principal amount in excess of $1,000,000,
physical delivery of such Note to the Pledgee, endorsed in blank, or, at the request of the Pledgee, endorsed to the Pledgee; and
  
 (vi) with respect to cash proceeds from any of the Collateral described in Section 3.1 hereof which are
required to be delivered to an held by the Collateral Agent pursuant to Section 6 hereof, (i) establishment by the Pledgee of a cash account in the name of such Pledgor over which the Pledgee shall (to the extent not inconsistent with the
Intercreditor Agreement) have “control” within the meaning of the UCC and at any time any Event of Default is in existence no withdrawals or transfers may be made by any Person except with the prior written consent of the Pledgee
(subject to the terms of the Intercreditor Agreement) and (ii) deposit of such cash in such cash account.
  

(b) In addition to the actions required to be taken pursuant to Section 3.2(a) hereof, each Pledgor shall take the
following additional actions with respect to the Collateral:
  
 (i) with respect to all Collateral of such Pledgor whereby or with respect to which the Pledgee may obtain
“control” thereof within the meaning of Section 8-106 of the UCC (or under any provision of the UCC as same may be amended or supplemented from time to time, or under the laws of any relevant State other than the State of New York), such
Pledgor shall take all actions (to the extent not inconsistent with the Intercreditor Agreement) as may be reasonably requested from time to time by the Pledgee so that “control” of such Collateral is obtained and at all times held by
the Pledgee; and
  
 (ii) each Pledgor shall from time to time cause appropriate financing statements (on appropriate forms) under the Uniform
Commercial Code as in effect in the various relevant States, covering all Collateral hereunder (with the form of such financing statements to be reasonably satisfactory to the Pledgee), to be filed in the relevant filing offices so that at all times
the Pledgee’s security interest in all Investment Property and other Collateral which can be perfected by the filing of such financing statements (in each case to the maximum extent perfection by filing may be obtained under the laws of the
relevant States, including, without limitation, Section 9-312(a) of the UCC) is so perfected.
  
 3.3 Subsequently Acquired Collateral. If any Pledgor shall acquire (by purchase, stock
dividend, distribution or otherwise) any additional Collateral at any time or from time to time after the date hereof, such Collateral shall automatically (and without any further action being required to be taken) be subject to the pledge and
security interests created pursuant to Section 3.1 hereof and, furthermore, such Pledgor will, to the extent not inconsistent with the Intercreditor Agreement, thereafter take (or cause to be taken) all action (as promptly as practicable and, in any
event, within 10 days after it obtains such Collateral) with respect to such Collateral in accordance with the procedures set forth in Section 3.2 hereof, and will to the extent not inconsistent with the terms of the Intercreditor Agreement,
promptly thereafter deliver to the Pledgee (i) a certificate executed by an authorized officer of such Pledgor describing such Collateral and certifying that the same has been duly pledged in favor of the Pledgee (for the benefit of the Secured
Creditors) hereunder and (ii) supplements to Annexes A through F hereto as are necessary to cause such Annexes to be complete and accurate at such time. Without limiting the foregoing, (A) each Pledgor shall be required to pledge hereunder the
Equity Interests of any Foreign Corporation at any time and from time to time after the date hereof acquired by such Pledgor, provided that (x) any such pledge of Voting Equity Interests of any Foreign Corporation shall be subject to the provisions of clause (x) of the proviso to Section 3.1 hereof and (y) each
Pledgor shall be required to pledge hereunder 100% of the Non-Voting Equity Interests of each Foreign Corporation at any time and from time to time acquired by such Pledgor and (B) each Pledgor shall be required to pledge hereunder any Notes at any
time and from time to time after the date hereof acquired by such Pledgor, subject to the threshold described in Section 3.2(a)(v) above for the delivery of such Notes, providedthat any such pledge or Note shall be subject to the provisions of clause (z)
of the proviso to Section 3.1 hereof.
  
 3.4 Transfer Taxes. Each
pledge of Collateral under Section 3.1 or Section 3.3 hereof shall be accompanied by any transfer tax stamps required in connection with the pledge of such Collateral.
  
 3.5 Certain Representations and Warranties Regarding the Collateral. Each Pledgor
represents and warrants that as of the Effective Date: (i) each Subsidiary of such Pledgor, and the direct ownership thereof, is listed on Schedule VIII-A to the Credit Agreement hereto; (ii) the Stock (and any warrants or options to purchase Stock)
held by such Pledgor consists of the number and type of shares of the stock (or warrants or options to purchase any stock) of the corporations as described in Annex B hereto; (iii) such Stock referenced in clause (ii) of this paragraph constitutes
that percentage of the issued and outstanding capital stock of the issuing corporation as is set forth in Annex B hereto; (iv) the Pledged Notes held by such Pledgor consist of the promissory notes described in Annex C hereto where such Pledgor is
listed as the lender; (v) the Limited Liability Company Interests held by such Pledgor consist of the number and type of interests of the Persons described in Annex D hereto; (vi) each such Limited Liability Company Interest referenced in clause (v)
of this paragraph constitutes that percentage of the issued and outstanding equity interest of the issuing Person as set forth in Annex D hereto; (vii) the Partnership Interests held by such Pledgor consist of the number and type of interests of the
Persons described in Annex E hereto; (viii) each such Partnership Interest referenced in clause (vii) of this paragraph constitutes that percentage or portion of the entire partnership interest of the Partnership as set forth in Annex E hereto; (ix)
the exact address of each chief executive office of such Pledgor is listed on Annex F hereto; (x) the Pledgor has complied with the respective procedure set forth in Section 3.2(a) hereof with respect to each item of Collateral described in Annexes
B through E hereto; and (xi) on the date hereof, such Pledgor owns no other Securities, Stock, Pledged Notes, Limited Liability Company Interests or Partnership Interests.
  
 3.6 Overriding Provisions with respect to TL Priority Collateral. Notwithstanding anything to the contrary contained above in this Section 3, or elsewhere in this Agreement or any other Security Document, to the extent the provisions of this
Agreement (or any other Security Documents) require the delivery of, or control over, TL Priority Collateral to be granted to the Pledgee at any time prior to the TL Credit Documents Obligations Termination Date, then delivery of such TL Priority
Collateral (or control with respect thereto) shall instead be granted to the Term Collateral Agent, to be held in accordance with the Term Documents and the Intercreditor Agreement. Furthermore, at all times prior to the TL Credit Document
Obligations Termination Date, the Collateral Agent is authorized by the parties hereto to effect transfers of TL Priority Collateral at any time in its possession (and any “control” or similar agreements with respect to TL Priority
Collateral) to the Term Collateral Agent.
  
 4. APPOINTMENT OF SUB-AGENTS; ENDORSEMENTS, ETC. The Pledgee shall have the right to appoint one or more sub-agents for
the purpose of retaining physical possession of the Collateral, which may be held (in the discretion of the Pledgee) in the name of the relevant Pledgor, endorsed or assigned in blank or in favor of the Pledgee or any nominee or nominees of the
Pledgee or a sub-agent appointed by the Pledgee.
  
  5. VOTING, ETC., WHILE
NO NOTICED EVENT OF DEFAULT. Unless and until there shall have occurred and be continuing any Noticed Event of Default, each Pledgor shall be entitled to exercise any and all voting and other consensual rights pertaining to the Collateral owned by
it, and to give consents, waivers or ratifications in respect thereof; provided that, in each case, no vote shall be cast or any consent, waiver or ratification given or any action taken or omitted to be taken which would violate or result in a breach of
any covenant contained in the Intercreditor Agreement or any Secured Debt Agreement, or which could reasonably be expected to have the effect of materially impairing the value of the Collateral or any part thereof or the position or interests of the
Pledgee or any other Secured Creditor in the Collateral, unless permitted by the terms of the Secured Debt Agreements. All such rights of each Pledgor to vote and to give consents, waivers and ratifications shall cease in case a Noticed Event of
Default has occurred and is continuing, and Section 7 hereof shall become applicable.
  
 
 6. DIVIDENDS AND OTHER DISTRIBUTIONS. Subject to the terms of the Intercreditor Agreement, unless and until there shall
have occurred and be continuing a Noticed Event of Default, all cash dividends, cash distributions, cash Proceeds and other cash amounts payable in respect of the Collateral shall be paid to the respective Pledgor. Subject to the terms of the
Intercreditor Agreement, the Pledgee shall be entitled to receive directly, and to retain as part of the Collateral:
  
 (i) all other or additional stock, notes, certificates, limited liability company interests, partnership
interests, instruments or other securities or property (excluding cash dividends) paid or distributed by way of dividend or otherwise in respect of the Collateral;
  
 (ii) all other or additional stock, notes, certificates, limited liability company interests, partnership interests, instruments or other securities or property (other than cash) paid
or distributed in respect of the Collateral by way of stock-split, spin-off, split-up, reclassification, combination of shares or similar rearrangement;
  
 (iii) all other or additional stock, notes, certificates, limited liability company interests, partnership interests, instruments or other securities or property (excluding cash) which
may be paid in respect of the Collateral by reason of any consolidation, merger, exchange of stock, conveyance of assets, liquidation or similar corporate or other reorganization; and
  
 (iv) all cash distributions in respect of the Collateral after a Noticed Event of Default.
  
 Except as set forth in the Intercreditor Agreement, nothing contained in this Section 6 shall limit or restrict in any way the Pledgee’s right to receive the proceeds of
the Collateral in any form in accordance with Section 3 of this Agreement. To the extent not inconsistent with the terms of the Intercreditor Agreement, all dividends, distributions or other payments which are received by any Pledgor contrary to the
provisions of this Section 6 or Section 7 hereof shall be received in trust for the benefit of the Pledgee, shall be segregated from other property or funds of such Pledgor and shall be forthwith paid over to the Pledgee as Collateral in the same
form as so received (with any necessary endorsement).
  
 7. REMEDIES IN CASE OF A NOTICED EVENT OF DEFAULT. (a) If there shall have occurred and be continuing a Noticed Event of
Default, then and in every such case, to the extent not inconsistent with the terms of the Intercreditor Agreement, the Pledgee shall be entitled to exercise all of the rights, powers and remedies (whether vested in it by this Agreement, any other
Secured Debt Agreement or by law) for the protection and enforcement of its rights in respect of the Collateral, and the Pledgee shall be entitled to exercise all the rights and remedies of a secured party under the UCC as in effect in any relevant
jurisdiction and also shall be entitled, without limitation, to exercise the following rights, which each Pledgor hereby agrees to be commercially reasonable:
  
 (i) to receive all amounts payable in respect of the Collateral otherwise payable under Section 6 hereof to the respective Pledgor;
  
 (ii) to transfer all or any part of the Collateral into the Pledgee’s name or the name of its nominee or nominees;
  
 (iii) to accelerate any Pledged Note which may be accelerated in accordance with its terms, and take any other lawful action to collect upon any Pledged Note (including, without
limitation, to make any demand for payment thereon);
  
                             
   (iv) to vote (and exercise all rights and powers in respect of voting) all or any
part of the Collateral (whether or not transferred into the name of the Pledgee) and give all consents, waivers and ratifications in respect of the Collateral and otherwise act with respect thereto as though it were the outright owner thereof (each
Pledgor hereby irrevocably constituting and appointing the Pledgee the proxy and attorney-in-fact of such Pledgor, with full power of substitution to do so);
  
 (v) at any time and from time to time to sell, assign and deliver, or grant options to purchase, all or any part of the Collateral, or any interest therein, at any public or private
sale, without demand of performance, advertisement or, notice of intention to sell or of the time or place of sale or adjournment thereof or to redeem or otherwise purchase or dispose (all of which are hereby waived by each Pledgor), for cash, on
credit or for other property, for immediate or future delivery without any assumption of credit risk, and for such price or prices and on such terms as the Pledgee in its absolute discretion may determine, provided at least 10 days’ written notice of the time and place of any such sale
shall be given to the respective Pledgor. The Pledgee shall not be obligated to make any such sale of Collateral regardless of whether any such notice of sale has theretofore been given. Each Pledgor hereby waives and releases to the fullest extent
permitted by law any right or equity of redemption with respect to the Collateral, whether before or after sale hereunder, and all rights, if any, of marshalling the Collateral and any other security or the Obligations or otherwise. At any such
sale, unless prohibited by applicable law, the Pledgee on behalf of the Secured Creditors may bid for and purchase all or any part of the Collateral so sold free from any such right or equity of redemption. Neither the Pledgee nor any other Secured
Creditor shall be liable for failure to collect or realize upon any or all of the Collateral or for any delay in so doing nor shall any of them be under any obligation to take any action whatsoever with regard thereto; and
  
 (vi) to set off any and all Collateral against any and all Obligations, and to withdraw any and all cash or other Collateral from any and all Collateral Accounts and to apply such
cash and other Collateral to the payment of any and all Obligations.
  
 (b) If there shall have occurred and be continuing a Noticed Event of Default, then and in every such case, the Pledgee
shall be entitled to vote (and exercise all rights and powers in respect of voting) all or any part of the Collateral (whether or not transferred into the name of the Pledgee) and give all consents, waivers and ratifications in respect of the
Collateral and otherwise act with respect thereto as though it were the outright owner thereof (each Pledgor hereby irrevocably constituting and appointing the Pledgee the proxy and attorney-in-fact of such Pledgor, with full power of substitution
to do so).
  
 8. REMEDIES, CUMULATIVE, ETC. Subject to the terms of (and to the extent not inconsistent with) the Intercreditor
Agreement, each and every right, power and remedy of the Pledgee provided for in this Agreement or in any other Secured Debt Agreement, or now or hereafter existing at law or in equity or by statute shall be cumulative and concurrent and shall be in
addition to every other such right, power or remedy. The exercise or beginning of the exercise by the Pledgee or any other Secured Creditor of any one or more of the rights, powers or remedies provided for in this Agreement or any other Secured Debt
Agreement (including, without limitation, the Intercreditor Agreement) or now or hereafter existing at law or in equity or by statute or otherwise shall not preclude the simultaneous or later exercise by the Pledgee or any other Secured Creditor of
all such other rights, powers or remedies, and no failure or delay on the part of the Pledgee or any other Secured Creditor to exercise any such right, power or remedy shall operate as a waiver thereof. No notice to or demand on any Pledgor in any
case shall entitle it to any other or further notice or demand in similar or other circumstances or constitute a waiver of any of the rights of the Pledgee or any other Secured Creditor to any other or further action in any circumstances without
notice or demand. The Secured Creditors agree that this Agreement may be enforced only by the action of the Pledgee, in each case, acting upon the instructions of the Required Secured Creditors, and that no other Secured Creditor shall have any
right individually to seek to enforce or to enforce this Agreement or to realize upon the security to be granted hereby, it being understood and agreed that such rights and remedies may be exercised by the Pledgee for the benefit of the Secured
Creditors upon the terms of this Agreement and the U.S. Security Agreement.
  
 9. APPLICATION OF PROCEEDS. (a) Subject to the terms of the Intercreditor Agreement, all monies collected by the Pledgee
upon any sale or other disposition of the Collateral pursuant to the terms of this Agreement, together with all other monies received by the Pledgee hereunder, shall be applied in the manner provided in the U.S. Security Agreement.
  
 (b) It is understood and agreed that each Pledgor shall remain jointly and severally liable with respect to its Obligations to the extent of any deficiency between the amount of the
proceeds of the Collateral pledged by it hereunder and the aggregate amount of such Obligations.
  
 (c) It is understood and agreed by all parties hereto that the Pledgee shall have no liability for any determinations
made by it in this Section 9 (including, without limitation, as to whether given Collateral constitutes TL Priority Collateral or ABL Priority Collateral), in each case except to the extent resulting from the gross negligence or willful misconduct
of the Pledgee (as determined by a court of competent jurisdiction in a final and non-appealable decision). The parties also agree that the Pledgee may (but shall not be required to), at any time and in its sole discretion, and with no liability
resulting therefrom, petition a court of competent jurisdiction regarding any application of Collateral in accordance with the requirements hereof and of the Intercreditor Agreement, and the Pledgee shall be entitled to wait for, and may
conclusively rely on, any such determination.
  
 10. PURCHASERS OF COLLATERAL. Upon any sale of the Collateral by the Pledgee hereunder (whether by virtue of the power of
sale herein granted, pursuant to judicial process or otherwise), the receipt of the Pledgee or the officer making such 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 Pledgee or such officer or be answerable in any way for the misapplication or nonapplication thereof.
  
 11. INDEMNITY. Each Pledgor jointly and severally agrees (i) to indemnify, reimburse and hold harmless the Pledgee and each other Secured Creditor and their respective successors,
assigns, employees, agents and affiliates (individually an “Indemnitee”, and collectively, the “Indemnitees”) from and against any and all obligations, damages, injuries, penalties, claims, demands, losses, judgments and liabilities (including, without limitation, liabilities
for penalties) of whatsoever kind or nature, and (ii) to reimburse each Indemnitee for all reasonable costs, expenses and disbursements, including reasonable attorneys’ fees and expenses, in each case arising out of or resulting from this
Agreement or the exercise by any Indemnitee of any right or remedy granted to it hereunder or under any other Secured Debt Agreement (but excluding any obligations, damages, injuries, penalties, claims, demands, losses, judgments and liabilities
(including, without limitation, liabilities for penalties) or expenses of whatsoever kind or nature to the extent (x) incurred or arising by reason of gross negligence or willful misconduct of such Indemnitee (as determined by a court of competent
jurisdiction in a final and non-appealable decision)) or (y) brought solely by an Affiliate of the Person to be indemnified); providedthat the Pledgors shall not be required to reimburse the legal fees and expenses of more than one outside counsel (in addition to and necessary or advisable special counsel and
up to one local counsel in each applicable local jurisdiction) for all Indemnitees unless, in the written opinion of outside counsel reasonably satisfactory to the Pledgors and the Pledgee, representation of all such Indemnitees would be
inappropriate due to the existence of an actual or potential conflict of interest. In no event shall the Pledgee hereunder be liable, in the absence of gross negligence or willful misconduct on its part (as determined by a court of competent
jurisdiction in a final and non-appealable decision), for any matter or thing in connection with this Agreement other than to account for monies or other property actually received by it in accordance with the terms hereof. If and to the extent that
the obligations of any Pledgor under this Section 11 are unenforceable for any reason, such Pledgor hereby agrees to make the maximum contribution to the payment and satisfaction of such obligations which is permissible under applicable law. The
indemnity obligations of each Pledgor contained in this Section 11 shall continue in full force and effect notwithstanding the full payment of all the Notes issued under the Credit Agreement, the termination of all Secured Hedging Agreements,
Treasury Services Agreements and Letters of Credit, and the payment of all other Obligations and notwithstanding the discharge thereof and the occurrence of the Termination Date.
  
 12. PLEDGEE NOT A PARTNER OR LIMITED LIABILITY COMPANY MEMBER. (a) Nothing herein shall be construed to make the Pledgee or any other Secured Creditor liable as a member of any
limited liability company or as a partner of any partnership and neither the Pledgee nor any other Secured Creditor by virtue of this Agreement or otherwise (except as referred to in the following sentence) shall have any of the duties, obligations
or liabilities of a member of any limited liability company or as a partner in any partnership. The parties hereto expressly agree that, unless the Pledgee shall become the absolute owner of Collateral consisting of a Limited Liability Company
Interest or a Partnership Interest pursuant hereto, this Agreement shall not be construed as creating a partnership or joint venture among the Pledgee, any other Secured Creditor, any Pledgor and/or any other Person.
  
 (b) Except as provided in the last sentence of paragraph (a) of this Section 12, the Pledgee, by accepting this Agreement, did not intend to become a member of any limited liability
company or a partner of any partnership or otherwise be deemed to be a co-venturer with respect to any Pledgor, any limited liability company, partnership and/or any other Person either before or after an Event of Default shall have occurred. The
Pledgee shall have only those powers set forth herein and the Secured Creditors shall assume none of the duties, obligations or liabilities of a member of any limited liability company or as a partner of any partnership or any Pledgor except as
provided in the last sentence of paragraph (a) of this Section 12.
  
 (c) The Pledgee and the other Secured Creditors shall not be obligated to perform or discharge any obligation of any
Pledgor as a result of the pledge hereby effected.
  
 (d) The acceptance by the Pledgee of this Agreement, with all the rights, powers, privileges and authority so created,
shall not at any time or in any event obligate the Pledgee or any other Secured Creditor to appear in or defend any action or proceeding relating to the Collateral to which it is not a party, or to take any action hereunder or thereunder, or to
expend any money or incur any expenses or perform or discharge any obligation, duty or liability under the Collateral.
  
 13. FURTHER ASSURANCES;
POWER-OF-ATTORNEY. (a) Each Pledgor agrees that it will join with the Pledgee in executing and, at such Pledgor’s own expense, file and refile under the UCC or other applicable law such financing statements, continuation statements and other
documents, in form reasonably acceptable to the Pledgee, in such offices as the Pledgee (acting on its own or on the instructions of the Required Secured Creditors) may reasonably deem necessary or appropriate and wherever required or permitted by
law in order to perfect and preserve the Pledgee’s security interest in the Collateral hereunder and hereby authorizes the Pledgee to file financing statements and amendments thereto relative to all or any part of the Collateral (including,
without limitation, financing statements which list the Collateral specifically and/or “all assets” as collateral) without the signature of such Pledgor where permitted by law, and agrees to do such further acts and things and to execute
and deliver to the Pledgee such additional conveyances, assignments, agreements and instruments as the Pledgee may reasonably require or deem advisable to carry into effect the purposes of this Agreement or to further assure and confirm unto the
Pledgee its rights, powers and remedies hereunder or thereunder.
  
 (b) Each Pledgor hereby constitutes and appoints the Pledgee its true and lawful attorney-in-fact, irrevocably, with
full authority in the place and stead of such Pledgor and in the name of such Pledgor or otherwise, from time to time after the occurrence and during the continuance of a Noticed Event of Default, in the Pledgee’s discretion, to act, require,
demand, receive and give acquittance for any and all monies and claims for monies due or to become due to such Pledgor under or arising out of the Collateral, to endorse any checks or other instruments or orders in connection therewith and to file
any claims or take any action or institute any proceedings and to execute any instrument which the Pledgee may deem necessary or advisable to accomplish the purposes of this Agreement, which appointment as attorney is coupled with an
interest.
  
 14. THE PLEDGEE AS COLLATERAL AGENT. Subject to the terms of the Intercreditor Agreement, the Pledgee will hold in
accordance with this Agreement all items of the Collateral at any time received under this Agreement. It is expressly understood, acknowledged and agreed by each Secured Creditor that by accepting the benefits of this Agreement each such Secured
Creditor acknowledges and agrees that the obligations of the Pledgee as holder of the Collateral and interests therein and with respect to the disposition thereof, and otherwise under this Agreement, are only those expressly set forth in this
Agreement and in Annex M to the Security Agreement. The Pledgee shall act hereunder on the terms and conditions set forth herein and in Annex M to the Security Agreement, the terms of which shall be deemed incorporated herein by reference,
mutatis mutandis, as fully as if the same were set forth herein and referencing this Agreement in its entirety.
  
 15. TRANSFER BY THE PLEDGORS. Except as permitted (i) prior to the date all Credit Document Obligations have
been paid in full and all Commitments under the Credit Agreement have been terminated, pursuant to the Credit Agreement, and (ii) thereafter, pursuant to the other Secured Debt Agreements, no Pledgor will sell or otherwise dispose of, grant any
option with respect to, or mortgage, pledge or otherwise encumber any of the Collateral or any interest therein.
  
 16. REPRESENTATIONS, WARRANTIES AND COVENANTS OF THE PLEDGORS. (a) Each Pledgor represents, warrants and
covenants:
  
 (i) it is the legal, beneficial and record owner of, and has good and marketable title to, all of its Collateral
consisting of one or more Securities, Notes, Partnership Interests and Limited Liability Company Interests and that it has sufficient interest in all of its Collateral in which a security interest is purported to be created hereunder for such
security interest to attach (subject, in each case, to no pledge, lien, mortgage, hypothecation, security interest, charge, option, Adverse Claim or other encumbrance whatsoever, except the liens and security interests created by this Agreement or
permitted under the Secured Debt Agreements);
  
 (ii) it has full power, authority and legal right to pledge all the Collateral pledged by it pursuant to this
Agreement;
  
 (iii) this Agreement has been duly authorized, executed and delivered by such Pledgor and constitutes a legal, valid and
binding obligation of such Pledgor enforceable against such Pledgor in accordance with its terms, except to the extent that the enforceability thereof may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or other similar
laws affecting creditors’ rights generally and by general equitable principles (regardless of whether enforcement is sought in equity or at law);
  
 (iv) except to the extent already obtained or made and except for the filing of the UCC financing statements required to be filed on or about the date hereof in accordance with the
U.S. Security Agreement, no consent of any other party (including, without limitation, any stockholder, partner, member or creditor of such Pledgor or any of its Subsidiaries) and no consent, license, permit, approval or authorization of, exemption
by, notice or report to, or registration, filing or declaration with, any governmental authority is required to be obtained by such Pledgor in connection with (a) the execution, delivery or performance of this Agreement by such Pledgor, (b) the
validity or enforceability of this Agreement against such Pledgor (except as set forth in clause (iii) above), (c) the perfection or enforceability of the Pledgee’s security interest in such Pledgor’s Collateral or (d) except for
compliance with or as may be required by applicable securities laws, the exercise by the Pledgee of any of its rights or remedies provided herein;
  
 (v) neither the execution, delivery or performance by such Pledgor of this Agreement, or any other Secured Debt Agreement to which it is a party, nor compliance by it with the terms
and provisions hereof and thereof nor the consummation of the transactions contemplated therein: (i) will contravene in any material respect any provision of any material applicable law, statute, rule or regulation, or any applicable order, writ,
injunction or decree of any court, arbitrator or governmental instrumentality, domestic or foreign, applicable to such Pledgor; (ii) will conflict or be inconsistent with or result in any breach of any of the material terms, covenants, conditions or
provisions of, or constitute a default under, or result in the creation or imposition of (or the obligation to create or impose) any Lien (except pursuant to the Security Documents) upon any of the properties or assets of such Pledgor or any of its
Subsidiaries pursuant to the terms of any indenture, lease, mortgage, deed of trust, credit agreement, loan agreement or any other material agreement, contract or other instrument to which such Pledgor or any of its Subsidiaries is a party or is
otherwise bound, or by which it or any of its properties or assets is bound or to which it may be subject; or (iii) will violate any provision of the certificate of incorporation, by-laws, certificate of partnership, partnership agreement,
certificate of formation or limited liability company agreement (or equivalent organizational documents), as the case may be, of such Pledgor or any of its Subsidiaries;
  
 (vi) all of such Pledgor’s Collateral (consisting of Securities, Limited Liability Company Interests and Partnership Interests) has been duly and validly issued, is fully paid
and non-assessable and is subject to no options to purchase or similar rights;
  
 (vii) to the knowledge of the Pledgor, each of such Pledgor’s Pledged Notes constitutes, or when executed by the
obligor thereof will constitute, the legal, valid and binding obligation of such obligor, enforceable in accordance with its terms, except to the extent that the enforceability thereof may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium or other similar laws affecting creditors’ rights generally and by general equitable principles (regardless of whether enforcement is sought in equity or at law);
  
 (viii) the pledge, collateral assignment and delivery to the Pledgee of such Pledgor’s Collateral consisting of Certificated Securities and Pledged
Notes pursuant to this Agreement creates a valid and perfected first priority security interest in such Certificated Securities and Pledged Notes, and the proceeds thereof, subject to no prior Lien or encumbrance or to any agreement purporting to
grant to any third party a Lien or encumbrance on the property or assets of such Pledgor which would include the Securities and/or Pledged Notes (other than the liens and security interests permitted under the Secured Debt Agreements then in effect)
and the Pledgee is entitled to all the rights, priorities and benefits afforded by the UCC or other relevant law as enacted in any relevant jurisdiction to perfect security interests in respect of such Collateral; and
  
 (ix) “control” (as defined in Section 8-106 of the UCC) has been obtained by the Pledgee over all of such Pledgor’s Collateral consisting of Securities and/or
Pledged Notes) with respect to which such “control” may be obtained pursuant to Section 8-106 of the UCC, except to the extent that the obligation of the applicable Pledgor to provide the Pledgee with “control” of such
Collateral has not yet arisen under this Agreement; providedthat in the
case of the Pledgee obtaining “control” over Collateral consisting of a Security Entitlement, such Pledgor shall have taken all steps in its control so that the Pledgee obtains “control” over such Security
Entitlement.
  
 (b) Each Pledgor covenants and agrees that it will defend the Pledgee’s right, title and security interest in and
to such Pledgor’s Collateral and the proceeds thereof against the claims and demands of all persons whomsoever.
  
 (c) Each Pledgor covenants and agrees that it will take no action which would violate any of the terms of any
Secured Debt Agreement.
  
 17. LEGAL NAMES; TYPE OF ORGANIZATION (AND WHETHER A REGISTERED ORGANIZATION AND/OR A TRANSMITTING UTILITY); JURISDICTION
OF ORGANIZATION; LOCATION; ORGANIZATIONAL IDENTIFICATION NUMBERS; CHANGES THERETO; ETC. The exact legal name of each Pledgor, the type of organization of such Pledgor, whether or not such Pledgor is a Registered Organization, the jurisdiction of
organization of such Pledgor, such Pledgor’s Location, the organizational identification number (if any) of such Pledgor, and whether or not such Pledgor is a Transmitting Utility, is listed on Annex A hereto for such Pledgor. No Pledgor shall
change its legal name, its type of organization, or its organizational identification number (if any), except that any such changes shall be permitted (so long as not in violation of the applicable requirements of the Secured Debt Agreements and so
long as same do not involve any Pledgor changing its jurisdiction of organization or Location from the United States or a State thereof to a jurisdiction of organization or Location, as the case may be, outside the United States or a State thereof)
if (i) it shall have given to the Collateral Agent not less than 15 days’ prior written notice of each change to the information listed on Annex A (as adjusted for any subsequent changes thereto previously made in accordance with this
sentence), together with a supplement to Annex A which shall correct all information contained therein for such Pledgor, and (ii) in connection with the respective change or changes, it shall have taken all action reasonably requested by the
Collateral Agent to maintain the security interests of the Collateral Agent in the Collateral intended to be granted hereby at all times fully perfected and in full force and effect. In addition, to the extent that any Pledgor does not have an
organizational identification number on the date hereof and later obtains one, such Pledgor shall promptly thereafter deliver a notification of the Collateral Agent of such organizational identification number and shall take all actions reasonably
satisfactory to the Collateral Agent to the extent necessary to maintain the security interest of the Collateral Agent in the Collateral intended to be granted hereby fully perfected and in full force and effect.
  
 18. PLEDGORS’ OBLIGATIONS ABSOLUTE, ETC. The obligations of each Pledgor under this Agreement shall be absolute and unconditional and shall remain in full force and effect
without regard to, and shall not be released, suspended, discharged, terminated or otherwise affected by, any circumstance or occurrence whatsoever (other than termination of this Agreement pursuant to Section 20 or, with respect to a specific
Pledgor, release of such Pledgor pursuant to Section 32 hereof), including, without limitation:
  
 (i) any renewal, extension, amendment or modification of, or addition or supplement to or deletion from any Secured Debt
Agreement (other than this Agreement in accordance with its terms), or any other instrument or agreement referred to therein, or any assignment or transfer of any thereof;
  
 (ii) any waiver, consent, extension, indulgence or other action or inaction under or in respect of any such agreement or instrument including, without limitation, this Agreement
(other than a waiver, consent or extension with respect to this Agreement in accordance with its terms);
  

(iii) any furnishing of any additional security to the Pledgee or its assignee or any acceptance thereof or any release of
any security by the Pledgee or its assignee;
  
 (iv) any limitation on any party’s liability or obligations under any such instrument or agreement or any
invalidity or unenforceability, in whole or in part, of any such instrument or agreement or any term thereof; or
  
 (v) any bankruptcy, insolvency, reorganization, composition, adjustment, dissolution, liquidation or other
like proceeding relating to any Pledgor or any Subsidiary of any Pledgor, or any action taken with respect to this Agreement by any trustee or receiver, or by any court, in any such proceeding, whether or not such Pledgor shall have notice or
knowledge of any of the foregoing.
  
 19. SALE OF COLLATERAL WITHOUT REGISTRATION. If at any time when the Pledgee shall determine to exercise its right to
sell all or any part of the Collateral consisting of Securities, Limited Liability Company Interests or Partnership Interests pursuant to Section 7 hereof, and such Collateral or the part thereof to be sold shall not, for any reason whatsoever, be
effectively registered under the Securities Act, as then in effect, the Pledgee may, in its sole and absolute discretion, sell such Collateral or part thereof by private sale in such manner and under such circumstances as the Pledgee may deem
necessary or advisable in order that such sale may legally be effected without such registration. Without limiting the generality of the foregoing, in any such event the Pledgee, in its sole and absolute discretion (i) may proceed to make such
private sale notwithstanding that a registration statement for the purpose of registering such Collateral or part thereof shall have been filed under such Securities Act, (ii) may approach and negotiate with a single possible purchaser to effect
such sale, and (iii) may restrict such sale to a purchaser who will represent and agree that such purchaser is purchasing for its own account, for investment, and not with a view to the distribution or sale of such Collateral or part thereof. In the
event of any such sale, the Pledgee shall incur no responsibility or liability for selling all or any part of the Collateral at a price which the Pledgee, in its sole and absolute discretion, may in good faith deem reasonable under the
circumstances, notwithstanding the possibility that a substantially higher price might be realized if the sale were deferred until the registration as aforesaid.
  
 20. TERMINATION; RELEASE. (a) On the Termination Date (as defined below), this Agreement shall terminate (provided that all indemnities set forth herein including, without limitation in
Section 11 hereof, shall survive such termination) and the Pledgee, at the request and expense of the respective Pledgor will, subject to the provisions of the Intercreditor Agreement, promptly execute and deliver to such Pledgor a proper instrument
or instruments (including Uniform Commercial Code termination statements on form UCC-3) acknowledging the satisfaction and termination of this Agreement, and will duly assign, transfer and deliver to such Pledgor (without recourse and without any
representation or warranty) such of the Collateral as may be in the possession of the Pledgee or any of its sub-agents hereunder and as has not theretofore been sold or otherwise applied or released pursuant to this Agreement, together with any
moneys at the time held by the Pledgee or any of its sub-agents hereunder and, with respect to any Collateral consisting of an Uncertificated Security, a Partnership Interest or a Limited Liability Company Interest (other than an Uncertificated
Security, Partnership Interest or Limited Liability Company Interest credited on the books of a Clearing Corporation or Securities Intermediary), a termination of the agreement relating thereto executed and delivered by the issuer of such
Uncertificated Security pursuant to Section 3.2(a)(ii) or by the respective partnership or limited liability company pursuant to Section 3.2(a)(iv)(2). As used in this Agreement, “Termination Date” shall mean the date upon which the Total Commitment under the
Credit Agreement has been terminated, no Note (as defined in the Credit Agreement) is outstanding (and all Loans have been paid in full) and all Obligations under Secured Hedging Agreements and all other Obligations appearing therein (other than
indemnities under the Secured Debt Agreements which are not then due and payable) have been paid in full and all Secured Hedging Agreement have been terminated.
  
 (b) In the event that any part of the Collateral and all Obligations is sold or otherwise disposed of (to a Person other than a Credit Party) (x) at any time prior to the time at
which all Credit Document Obligations have been paid in full and all Commitments and Letters of Credit under the Credit Agreement have been terminated in connection with a sale or disposition permitted by Section 10.02 of the Credit Agreement, or is
otherwise released at the direction of the Required Lenders (or all the Lenders if required by Section 13.12 of the Credit Agreement) or (y) at any time thereafter, to the extent permitted by the other Secured Debt Agreements, and in the case of
clauses (x) and (y), and the proceeds of such sale or disposition (or from such release) are applied in accordance with the terms of the Credit Agreement or such other Secured Debt Agreement, as the case may be, to the extent required to be so
applied, the Pledgee, at the request and expense of Aleris, will duly release from the security interest created hereby (and will execute and deliver such documentation, including termination or partial release statements and the like in connection
therewith) and assign, transfer and deliver Aleris, on behalf of the applicable Pledgor (without recourse and without any representation or warranty) such of the Collateral (as defined in the Credit Agreement) as is then being (or has been) so sold
or otherwise disposed of, or released, and as may be in the possession of the Pledgee (or any of its sub-agents hereunder) and has not theretofore been released pursuant to this Agreement. Furthermore, upon the release of any Guarantor from any
Guaranty in accordance with the provisions thereof or in accordance with Section 13.12(b) of the Credit Agreement, such Pledgor (and the Collateral at such time assigned by the respective Pledgor, grantor, pledgor or assignor pursuant hereto) shall
be released from this Agreement.
  
 (c) At any time that any Pledgor desires that the Pledgee take any action to acknowledge or give effect to any release
of Collateral pursuant to the foregoing Section 20(a) or (b), such Pledgor shall deliver to the Pledgee (and the relevant sub-agent, if any, designated hereunder) a certificate signed by a principal executive officer of such Pledgor stating that the
release of the respective Collateral is permitted pursuant to Section 20(a) or (b) hereof. If reasonably requested by the Pledgee (although the Pledgee shall have no obligation to make any such request), the respective Pledgor shall furnish
appropriate legal opinions (from counsel, reasonably acceptable to the Pledgee) to the effect set forth in the immediately preceding sentence. At any time that the U.S. Borrower or the respective Pledgor desires that a Subsidiary of the U.S.
Borrower which has been released from the U.S. Subsidiaries Guaranty be released hereunder as provided in the penultimate sentence of Section 20(b), it shall deliver to the Pledgee a certificate signed by a principal executive officer of the U.S.
Borrower and the respective Pledgor stating that the release of the respective Pledgor (and its Collateral) is permitted pursuant to such Section 20(b).
  
 (d) The Pledgee shall have no liability whatsoever to any other Secured Creditor as the result of any release of Collateral by it in accordance with, or which the Pledgee believes to
be in accordance with, this Section 20.
  
 21. NOTICES, ETC. Except as otherwise specified herein, all notices, requests, demands or other communications to or upon
the respective parties hereto shall be sent or delivered by mail, telegraph, telex, telecopy, cable or courier service and all such notices and communications shall, when mailed, telegraphed, telexed, telecopied, or cabled or sent by courier, be
effective when deposited in the mails, delivered to the telegraph company, cable company or overnight courier, as the case may be, or sent by telex or telecopier, except that notices and communications to the Pledgee or any Pledgor shall not be
effective until received by the Pledgee or such Pledgor, as the case may be. All notices and other communications shall be in writing and addressed as follows:
  
 (a) if to any Pledgor, c/o:
  
              Aleris International,
Inc.,
                                     25825 Science Park Drive, Suite 400,
                                     Beachwood, OH 44122,
                                     Attention: General Counsel
                                     Telephone No.: (216) 910-3400
                                     Telecopier No.: (216) 910-3650
  
 (b) if to the Pledgee or Administrative Agent, at:
  
                             
        Deutsche Bank AG New York Branch
                             
        60 Wall Street
                             
        New York, NY 10005 
                             
        Attention: Marguerite Sutton
                             
        Telephone No.: (212) 250-6150
                             
        Telecopier No.: (212) 797-4655
  
 (c) if to any Lender Creditor, either (x) to the Administrative Agent, at the address of the Administrative Agent specified in the Credit Agreement, or (y) at such address as such
Lender Creditor shall have specified in the Credit Agreement;
  
 (d) if to any Other Creditor, at such address as such Other Creditor shall have specified in writing to Aleris and the
Pledgee;
  
 (e) if to any Treasury Services Creditor, at such address as such Treasury Services Creditor shall have specified in
writing to Aleris and the Collateral Agent;
  
 or at such other address or addressed to such other
individual as shall have been furnished in writing by any Person described above to the party required to give notice hereunder.
  
 22. WAIVER; AMENDMENT. Except as provided in Section 30 hereof, none of the terms and conditions of this
Agreement may be changed, waived, modified or varied in any manner whatsoever except in accordance with the requirements specified in the U.S. Security Agreement.
  
 23. SUCCESSORS AND ASSIGNS. This Agreement shall create a continuing security interest in the Collateral and shall (i) remain in full force and effect, subject to release and/or
termination as set forth in Section 20, (ii) be binding upon each Pledgor, its successors and assigns; provided, however, that no Pledgor shall assign any of its rights or obligations hereunder without the prior written consent of the Pledgee (with the prior written consent of the Required Secured
Creditors), and (iii) inure, together with the rights and remedies of the Pledgee hereunder, to the benefit of the Pledgee, the other Secured Creditors and their respective successors, transferees and assigns. All agreements, statements,
representations and warranties made by each Pledgor herein or in any certificate or other instrument delivered by such Pledgor or on its behalf under this Agreement shall be considered to have been relied upon by the Secured Creditors and shall
survive the execution and delivery of this Agreement and the other Secured Debt Agreements regardless of any investigation made by the Secured Creditors or on their behalf.
  
 24. HEADINGS DESCRIPTIVE. The headings of the several Sections of this Agreement are inserted for convenience only and shall not in any way affect the meaning or construction of any
provision of this Agreement.
  
 25. GOVERNING LAW; SUBMISSION TO JURISDICTION; VENUE; WAIVER OF JURY TRIAL. (a) THIS AGREEMENT AND THE RIGHTS AND
OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE CONSTRUED IN ACCORDANCE WITH AND BE GOVERNED BY THE LAW OF THE STATE OF NEW YORK. ANY LEGAL ACTION OR PROCEEDING WITH RESPECT TO THIS AGREEMENT OR ANY OTHER CREDIT DOCUMENT MAY BE BROUGHT IN THE COURTS
OF THE STATE OF NEW YORK OR OF THE UNITED STATES FOR THE SOUTHERN DISTRICT OF NEW YORK, IN EACH CASE WHICH ARE LOCATED IN THE COUNTY OF NEW YORK, AND, BY EXECUTION AND DELIVERY OF THIS AGREEMENT, EACH PLEDGOR HEREBY IRREVOCABLY ACCEPTS FOR ITSELF
AND IN RESPECT OF ITS PROPERTY, GENERALLY AND UNCONDITIONALLY, THE NON-EXCLUSIVE JURISDICTION OF THE AFORESAID COURTS. EACH PLEDGOR HEREBY FURTHER IRREVOCABLY WAIVES
ANY CLAIM THAT ANY SUCH COURTS LACK PERSONAL JURISDICTION OVER SUCH PLEDGOR, AND AGREES NOT TO PLEAD OR CLAIM IN ANY LEGAL ACTION OR PROCEEDING WITH RESPECT TO THIS AGREEMENT OR ANY OTHER CREDIT DOCUMENT BROUGHT IN ANY OF THE AFORESAID COURTS THAT
ANY SUCH COURT LACKS PERSONAL JURISDICTION OVER SUCH PLEDGOR. EACH PLEDGOR FURTHER IRREVOCABLY CONSENTS TO THE SERVICE OF PROCESS OUT OF ANY OF THE AFOREMENTIONED COURTS IN ANY SUCH ACTION OR PROCEEDING BY THE MAILING OF COPIES THEREOF BY REGISTERED
OR CERTIFIED MAIL, POSTAGE PREPAID, TO ANY SUCH PLEDGOR AT ITS ADDRESS FOR NOTICES AS PROVIDED IN SECTION 21 ABOVE, SUCH SERVICE TO BECOME EFFECTIVE 30 DAYS AFTER SUCH MAILING. EACH PLEDGOR HEREBY IRREVOCABLY WAIVES ANY OBJECTION TO SUCH SERVICE OF
PROCESS AND FURTHER IRREVOCABLY WAIVES AND AGREES NOT TO PLEAD OR CLAIM IN ANY ACTION OR PROCEEDING COMMENCED HEREUNDER OR UNDER ANY OTHER CREDIT DOCUMENT THAT SUCH SERVICE OF PROCESS WAS IN ANY WAY INVALID OR INEFFECTIVE. NOTHING HEREIN SHALL
AFFECT THE RIGHT OF THE PLEDGEE UNDER THIS AGREEMENT, OR ANY SECURED CREDITOR, TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY LAW OR TO COMMENCE LEGAL PROCEEDINGS OR OTHERWISE PROCEED AGAINST ANY PLEDGOR IN ANY OTHER JURISDICTION.

 
 (b) EACH PLEDGOR HEREBY IRREVOCABLY WAIVES ANY OBJECTION WHICH IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY OF THE AFORESAID ACTIONS OR PROCEEDINGS ARISING OUT OF OR IN
CONNECTION WITH THIS AGREEMENT OR ANY OTHER CREDIT DOCUMENT BROUGHT IN THE COURTS REFERRED TO IN CLAUSE (a) ABOVE AND HEREBY FURTHER IRREVOCABLY WAIVES AND AGREES NOT TO PLEAD OR CLAIM IN ANY SUCH COURT THAT ANY SUCH ACTION OR PROCEEDING BROUGHT IN
ANY SUCH COURT HAS BEEN BROUGHT IN AN INCONVENIENT FORUM.
  
 (c) EACH OF THE PARTIES TO THIS AGREEMENT HEREBY IRREVOCABLY WAIVES ALL RIGHT TO A TRIAL BY JURY IN ANY ACTION,
PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR RELATING TO THIS AGREEMENT, THE OTHER CREDIT DOCUMENTS OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY.
  
 26. PLEDGOR’S DUTIES. It is expressly agreed, anything herein contained to the contrary notwithstanding, that each Pledgor shall remain liable to perform all of the
obligations, if any, assumed by it with respect to the Collateral and the Pledgee shall not have any obligations or liabilities with respect to any Collateral by reason of or arising out of this Agreement, except for the safekeeping of Collateral
actually in Pledgor’s possession, nor shall the Pledgee be required or obligated in any manner to perform or fulfill any of the obligations of any Pledgor under or with respect to any Collateral.
  
 27. COUNTERPARTS. This Agreement may be executed in any number of counterparts and by the different parties hereto on separate counterparts, each of which when so executed and
delivered shall be an original, but all of which shall together constitute one and the same instrument. A set of counterparts executed by all the parties hereto shall be lodged with each Pledgor and the Pledgee.
  
 28. SEVERABILITY. Any provision of this Agreement which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such
prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other
jurisdiction.
  
 29. RECOURSE. This Agreement is made with full recourse to each Pledgor and pursuant to and upon all the representations,
warranties, covenants and agreements on the part of such Pledgor contained herein and in the other Secured Debt Agreements and otherwise in writing in connection herewith or therewith.
  
 30. ADDITIONAL PLEDGORS. It is understood and agreed that any Subsidiary of Aleris that is required to become a party to this Agreement after the date hereof pursuant to the
requirements of the Credit Agreement or any other Credit Document, shall become a Pledgor hereunder by (x) executing a counterpart hereof, or a joinder agreement in form reasonably satisfactory to the Pledgee, and delivering the same to the Pledgee,
(y) delivering supplements to Annexes A through F hereto as are necessary to cause such annexes to be complete and accurate with respect to such additional Pledgor on such date and (z) taking all actions as specified in this Agreement as would have
been taken by such Pledgor had it been an original party to this Agreement, in each case with all documents required above to be delivered to the Pledgee and with all documents and actions required above to be taken to the reasonable satisfaction of
the Pledgee.
  
 31. LIMITED OBLIGATIONS. It is the desire and intent of each Pledgor and the Secured Creditors that this Agreement shall
be enforced against each Pledgor to the fullest extent permissible under the laws applied in each jurisdiction in which enforcement is sought. Notwithstanding anything to the contrary contained herein, in furtherance of the foregoing, it is noted
that the obligations of each Pledgor constituting a U.S. Subsidiary Guarantor have been limited as provided in the U.S. Subsidiaries Guaranty.
  
 32. RESTATEMENT AND AMENDMENT. This Agreement shall amend and restate in its entirety the U.S. Pledge Agreement, dated as of August 1, 2006 among certain of the Guarantors and the
Administrative Agent (the “Existing U.S. Pledge Agreement”) and all obligations of the Pledgors thereunder shall be deemed replaced and extended as obligations under this Agreement and be governed hereby without novation. In no event
shall such amendment and restatement be construed as a termination of the obligations under the Existing U.S. Pledge Agreement.
  
 * * * *
  
  
    

 

  
 
   
  
 
 
   
  

 
 
 
 
 IN WITNESS WHEREOF, each Pledgor and the Pledge have caused
this Agreement to be executed by their duly elected officers duly authorized as of the date first above written.
 
  
  
  
 Each assignor’s address is as listed
       on Annex A attached hereto
  
   
   
 
	 	 ALERIS INTERNATIONAL, INC.,
 
	 	 as
a Pledgor
 
	 	 	 
	 	 	 
	 	 By:
 	 /s/ Michael D. Fridey
 
	 	 Name:
 	 Michael D. Fridey
	 	 Title:
  
 	  Executive Vice President and
  Chief Financial Officer
 

 
 

 
 
   
 
	 	 AURORA ACQUISITION MERGER SUB,
 
	 	  INC., as a Pledgor
 
 
	 	 	 
	 	 	 
	 	 By:
 	 /s/ Clive Bode
 
	 	 Name:
 	 Clive Bode
	 	 Title:
  
 	 Vice President

 
 
 
  
	 	 ALCHEM ALUMINUM, INC.
 as a Pledgor
  
 
	 	 ALCHEM ALUMINUM SHELBYVILLE
 INC., as a Pledgor
  
 
	 	 ALERIS, INC., as a Pledgor
  
 
	 	 ALERIS OHIO MANAGEMENT, INC., 
 as a Pledgor
  
 
	 	ALSCO HOLDINGS, INC.,as a Pledgor  
 
	 	 ALSCO METALS CORPORATION,
 as a Pledgor
  
 
	 	 ALUMITECH OF CLEVELAND, INC., 
 as a Pledgor
  
 
	 	 ALUMITECH OF WABASH, INC., 
 as a Pledgor
  
 
	 	 ALUMITECH OF WEST VIRGINIA, INC., 
 as a Pledgor
  
 
	 	 ALUMITECH, INC., as a Pledgor
  
 
	 	 AWT PROPERTIES, INC., as a Pledgor
  
 
	 	 CA LEWISPORT, LLC, as a Pledgor
  
 
	 	 CI HOLDINGS, LLC, as a Pledgor
  
 
	 	 COMMONWEALTH ALUMINUM 
 CONCAST, INC., as a Pledgor
  
 
	 	 COMMONWEALTH ALUMINUM 
 LEWISPORT, LLC, as a Pledgor
  
 
	 	 COMMONWEALTH ALUMINUM METALS, 
 LLC, as a Pledgor
  
 
	 	 COMMONWEALTH ALUMINUM SALES 
 CORPORATION, as a Pledgor
  
 
	 	 COMMONWEALTH ALUMINUM TUBE,
 ENTERPRISES, LLC, as a Pledgor
  
 
	 	 COMMONWEALTH ALUMINUM, LLC, 
 as a Pledgor
  
 
	 	 COMMONWEALTH FINANCING CORP., 
 as a Pledgor
  
 
	 	 COMMONWEALTH INDUSTRIES, INC., 
 as a Pledgor
  
 
	 	 ETS SCHAEFER CORPORATION,
 as a Pledgor
  
 
	 	 GULF REDUCTION CORPORATION,
 as a Pledgor
  
 
	 	 IMCO INTERNATIONAL, INC.,
 as a Pledgor
  
 
	 	 IMCO INVESTMENT COMPANY,
 as a Pledgor
  
 
	 	 IMCO RECYCLING OF CALIFORNIA, INC.,
 as a Pledgor
  
 
	 	 IMCO RECYCLING OF IDAHO INC.,
 as a Pledgor
  
 
	 	 IMCO RECYCLING OF ILLINOIS INC.,
 as a Pledgor
  
 
	 	 IMCO RECYCLING OF INDIANA INC.,
 as a Pledgor
  
 
	 	 IMCO RECYCLING OF MICHIGAN L.L.C.,
 as a Pledgor
  
 
	 	 IMCO RECYCLING OF OHIO INC.,
 as a Pledgor
  
 
	 	 IMCO RECYCLING OF UTAH INC.,
 as a Pledgor
  
 
	 	 IMCO RECYCLING SERVICES COMPANY,
 as a Pledgor
  
 
	 	 IMSAMET, INC., as a Pledgor
  
 
	 	 ALERIS BLANKING AND RIM PRODUCTS,
 INC. (f/k/a INDIANA ALUMINUM INC.),
 as a Pledgor
  
 
	 	 INTERAMERICAN ZINC, INC.,
 as a Pledgor
  
 
	 	 METALCHEM, INC., as a Pledgor
  
 
	 	 MIDWEST ZINC CORPORATION,
 as a Pledgor
  
 
	 	 ROCK CREEK ALUMINUM, INC.,
 as a Pledgor
  
 
	 	 SILVER FOX HOLDING COMPANY,
 as a Pledgor
  
 
	 	 U.S. ZINC CORPORATION,
 as a Pledgor
  
 
	 	 U.S. ZINC EXPORT CORPORATION,
 as a Pledgor
  
 
	 	 WESTERN ZINC CORPORATION,
 as a Pledgor
  
 

 
 
  
 
	 	 	 
	 	 	 
	 	 By:
 	 /s/ Michael D. Fridey
 
	 	 Name:
 	 Michael D. Fridey
	 	 Title:
  
 	 Director

 
 

  
    
 
   
  
 
 
   
 
 

 
	 	 IMCO INDIANA PARTNERSHIP L.P.,
 
	 	 By: IMCO International, Inc. its General
 
	 	 Partner,
 
	 	 as
a Pledgor
 
	 	 	 
	 	 	 
	 	 By:
 	 /s/ Michael D. Fridey
 
	 	 Name:
 	 Michael D. Fridey
	 	 Title:
  
 	 President

 
 

  
 
	 	 IMCO MANAGEMENT PARTNERSHIP, L.P.,
 
	 	 By: Aleris International, Inc., its General
 
	 	 Partner,
 
	 	 as
a Pledgor
 
	 	 	 
	 	 	 
	 	 By:
 	 /s/ Michael D. Fridey
 
	 	 Name:
 	 Michael D. Fridey
	 	 Title:
  
 	  Executive Vice President and
  Chief Financial Officer
 

 
 

  
 

    
 
   
  
 

   
 
 
  

 
	 	 CORUS ALUMINUM CORP., as a Pledgor
 
	 	 
	 	 HOOGOVENS ALUMINUM EUROPE INC.,
 
	 	 as
a Pledgor
 
	 	 	 
	 	 	 
	 	 By:
 	 /s/ Michael D. Fridey
 
	 	 Name:
 	 Michael D. Fridey
	 	 Title:
  
 	 Director

 
 

  
    
 
   
  
 
 
   
 
 

 
 Accepted and Agreed to:
  
 
	 DEUTSCHE BANK AG NEW YORK BRANCH,
 	 
	 As Collateral Agent and Pledgee
 	 
	 	 
	 	 
	 	 	 
	 	 	 
	 By:
 	 /s/ Carin Keegan
 	 
	     Name:  Carin Keegan
 	 	 
	     Title:    Vice President
  
 	 	 

 
 

  
 
	 By:
 	 /s/ Scottye Lindsey
 	 
	     Name:    Scottye Lindsey
 	 	 

 
 
  
	     Title:     Director
 	 

 
 
  
 Address: 60 Wall Street
                 New York, NY 10005
  
  
  
    
 
   
  
 
 
   
 
 
  
 TABLE OF CONTENTS
 
 
    
 
	 	 	  Page
  
 
	 1.

 
 	 SECURITY FOR OBLIGATIONS
  
 	  
3
  
 
	 2.

  
 	 DEFINITIONS
  
 	  
5
  
 
	 3.

  
 	 PLEDGE OF SECURITIES, ETC.
  
 	 10

 
 
	 	 3.1

 	 Pledge
 	 10

	 	 3.2

 	 Procedures
 	 13

	 	 3.3

 	 Subsequently
Acquired Collateral
 	 15

	 	 3.4

 	 Transfer
Taxes
 	 15

	 	 3.5

 	 Certain
Representations and Warranties Regarding the Collateral
 	 15

	 	 3.6

 	 Overriding
Provisions with respect to TL Priority Collateral
 	 16

	 	 	 	 
	 4.

  
 	 APPOINTMENT OF SUB-AGENTS; ENDORSEMENTS, ETC.
  
 	 16

 
 
	 5.

  
 	 VOTING, ETC., WHILE NO NOTICED EVENT OF DEFAULT
  
 	 16

 
 
	 6.

  
 	 DIVIDENDS AND OTHER DISTRIBUTIONS
  

	 16

 
 
	 7.

  
 	 REMEDIES IN CASE OF A NOTICED EVENT OF DEFAULT
  
 	 17

 
 
	 8.

  
 	 REMEDIES, CUMULATIVE, ETC.
  
 	 18

 
 
	 9.

  
 	 APPLICATION OF PROCEEDS
  
 	 19

 
 
	 10.

  
 	 PURCHASERS OF COLLATERAL
  
 	 19

 
 
	 11.

  
 	 INDEMNITY
  
 	 19

 
 
	 12.

  
 	 PLEDGEE NOT A PARTNER OR LIMITED LIABILITY COMPANY MEMBER
  
 	 20

 
 
	 13.

  
 	 FURTHER ASSURANCES; POWER-OF-ATTORNEY
  
 	 21

 
 
	 14.

  
 	 THE PLEDGEE AS COLLATERAL AGENT
  

	 21

 
 
	 15.

  
 	 TRANSFER BY THE PLEDGORS
  
 	 22

 
 
	 16.

  
 	 REPRESENTATIONS, WARRANTIES AND COVENANTS OF THE PLEDGORS
  
 	 22

 
 

 
 
  
  
    
 
   
  
 
 
   
 
 

 Table of Contents
 (continued)
  
  
 
	 	 	  Page
  
 
	 17.

  
 	 LEGAL
NAMES; TYPE OF ORGANIZATION (AND WHETHER A REGISTERED ORGANIZATION AND/OR A TRANSMITTING UTILITY); JURISDICTION OF ORGANIZATION; LOCATION; ORGANIZATIONAL IDENTIFICATION NUMBERS; CHANGES THERETO; ETC.
  
 	  
 24
  
 
	 18.

  
 	 PLEDGORS’ OBLIGATIONS ABSOLUTE, ETC.
  
 	 24

 
 
	 19.

  
 	 SALE OF
COLLATERAL WITHOUT REGISTRATION
  
 	 25

 
 
	 20.

  
 	 TERMINATION; RELEASE
  
 	 26

 
 
	 21.
  
 	 NOTICES,
ETC.
  
 	 27

 
 
	 22.
  
 	 WAIVER;
AMENDMENT
  
 	 28

 
 
	 23.

  
 	 SUCCESSORS
AND ASSIGNS
  
 	 28

 
 
	 24.

  
 	 HEADINGS
DESCRIPTIVE
  
 	 28

 
 
	 25.

  
 	 GOVERNING
LAW; SUBMISSION TO JURISDICTION; VENUE; WAIVER OF
 JURY TRIAL
  
 	  
 28
  
 
	 26.

  
 	 PLEDGOR’ S DUTIES
  
 	 29

 
 
	 27.

  
 	 COUNTERPARTS
  
 	 29

 
 
	 28.

  
 	 SEVERABILITY
  
 	 30

 
 
	 29.

  
 	 RECOURSE
  
 	 30

 
 
	 30.

  
 	 ADDITIONAL
PLEDGORS
  
 	 30

 
 
	 31.

  
 	 LIMITED
OBLIGATIONS
  
 	 30

 
 

 

    
 
  

  
 
 
   
 
 

 Table of Contents
 (continued)
  
  
 
	 	 	  Page
  
 
	 32. 
  
 	 RESTATEMENT AND AMENDMENT. 
 	 30
  
 

 

   
 
   
  
 
 
   
 
 

 

 Table of Contents
 (continued)
  

	 ANNEX
A -
 	 SCHEDULE OF
LEGAL NAMES, TYPE OF ORGANIZATION (AND WHETHER A REGISTERED ORGANIZATION AND/OR A TRANSMITTING UTILITY), JURISDICTION OF ORGANIZATION, LOCATION AND ORGANIZATIONAL IDENTIFICATION NUMBERS
 
	 ANNEX
B -
 	 SCHEDULE OF
STOCK 
 
	 ANNEX C
 -
 	 SCHEDULE OF
NOTES 
 
	 ANNEX D
 -
 	 SCHEDULE OF
LIMITED LIABILITY COMPANY INTERESTS
 
	 ANNEX E
 -
 	 SCHEDULE OF
PARTNERSHIP INTERESTS
 
	 ANNEX F
 -
 	 SCHEDULE OF
CHIEF EXECUTIVE OFFICES
 
	 ANNEX
G -
 	 FORM OF
AGREEMENT REGARDING UNCERTIFICATED SECURITIES, LIMITED LIABILITY COMPANY INTERESTS AND PARTNERSHIP INTERESTS

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