Document:

Stockholders Agreement

 Exhibit 10.9 

 
  

 
 STOCKHOLDERS AGREEMENT

 among 

ALERIS HOLDING COMPANY 
 and 
 THE STOCKHOLDERS NAMED HEREIN 

 
  

Dated: June 1, 2010 
  

 
  

 
  

 TABLE OF CONTENTS 

 

							
	 	  	 	  	Page	 
		
	 ARTICLE I DEFINITIONS
	  	 	1	  
	 1.1
	  	 Definitions. As used in this Agreement, the following terms shall have the meanings set forth below:
	  	 	1	  
	 1.2
	  	 Terms and Usage Generally
	  	 	6	  
		
	 ARTICLE II RESTRICTIONS ON TRANSFER OF SHARES
	  	 	6	  
	 2.1
	  	 Limitation on Transfer
	  	 	6	  
	 2.2
	  	Permitted Transfers	  	 	6	  
	 2.3
	  	Permitted Transfer Procedures	  	 	7	  
	 2.4
	  	Transfers in Compliance with Law; Substitution of Transferee	  	 	7	  
	 2.5
	  	Transfers to a Competitor	  	 	7	  
	 2.6
	  	Holdback Agreement	  	 	7	  
		
	 ARTICLE III TAG-ALONG RIGHTS; DRAG-ALONG RIGHTS
	  	 	8	  
	 3.1
	  	Tag-Along Rights	  	 	8	  
	 3.2
	  	Drag-Along Rights	  	 	10	  
	 3.3
	  	Provisions Applicable to Tag-Along and Drag-Along Sales	  	 	11	  
		
	 ARTICLE IV PREEMPTIVE RIGHTS
	  	 	12	  
	 4.1
	  	Offering Notice	  	 	12	  
	 4.2
	  	Stockholder Option	  	 	13	  
	 4.3
	  	Exercise of Options	  	 	13	  
	 4.4
	  	Closing	  	 	14	  
	 4.5
	  	Sale to Subject Purchaser	  	 	14	  
		
	 ARTICLE V CORPORATE GOVERNANCE
	  	 	14	  
	 5.1
	  	Board of Directors	  	 	14	  
	 5.2
	  	Stockholder Action	  	 	15	  
		
	 ARTICLE VI STOCK CERTIFICATE LEGEND; BOOKS AND RECORDS; INSPECTION; FINANCIAL
	  	 	16	  
	     STATEMENTS
	  			
	 6.1
	  	Stock Certificate Legend	  	 	16	  
	 6.2
	  	Information Rights	  	 	16	  
	 6.3
	  	Confidentiality	  	 	17	  
		
	 ARTICLE VII MISCELLANEOUS
	  	 	18	  
	 7.1
	  	Notices	  	 	18	  
	 7.2
	  	Amendment and Waiver	  	 	19	  
	 7.3
	  	Specific Performance	  	 	19	  
	 7.4
	  	Headings	  	 	20	  
	 7.5
	  	Severability	  	 	20	  
	 7.6
	  	Entire Agreement	  	 	20	  
	 7.7
	  	Term of Agreement	  	 	20	  

  
 i 

							
	 	  	 	  	Page	 
			
	 7.8
	  	After-Acquired Securities	  	 	20	  
	 7.9
	  	GOVERNING LAW; CONSENT TO JURISDICTION; WAIVER OF JURY TRIAL	  	 	20	  
	 7.10
	  	Further Assurances	  	 	21	  
	 7.11
	  	Successors and Assigns	  	 	21	  
	 7.12
	  	Counterparts	  	 	22	  
		
	 SCHEDULE
	  			
			
	 1
	  	 Stockholders
	  			
			
	 EXHIBITS
	  		  			
			
	 A
	  	 Form of Certificate of Incorporation of the Company
	  			
	 B
	  	 Form of By-laws of the Company
	  			
	 C
	  	 Form of Transfer Agreement
	  			

  
 ii 

 EXECUTION COPY 
 STOCKHOLDERS AGREEMENT 
 STOCKHOLDERS AGREEMENT, dated as of June 1,
2010 (this “Agreement”), by and among Aleris Holding Company (f/k/a AHC1 Holding Co.), a Delaware corporation (the “Company”), (i) the funds and accounts managed by Oaktree Capital Management, L.P. or its
Affiliates (as defined herein) set forth on Schedule 1 hereto (collectively, “Oaktree”), (ii) the funds and accounts managed by Apollo Management VII, L.P. set forth on Schedule 1 hereto (collectively,
“Apollo”), (iii) the funds and accounts managed by Sankaty Advisors LLC set forth on Schedule 1 hereto (collectively, “Sankaty”), (iv) each other holder of Common Stock (as defined herein) as of the
date hereof and (v) each person joined hereto as a Stockholder after the date hereof. 
 WHEREAS, on the date hereof, the
Joint Plan of Reorganization of Aleris International, Inc., and its affiliated debtors under Chapter 11 of the United States Bankruptcy Code (the “Plan”) became effective; 

WHEREAS, on the date hereof, Aleris International, Inc. has transferred substantially all of its assets to the Company pursuant to the
Plan; 
 WHEREAS, immediately after giving effect to the transactions contemplated by the Plan, each of the undersigned Persons
shall, together with its Affiliates, own shares of Common Stock, with such Person’s holdings as set forth opposite such Person’s name on Schedule 1 hereto; 
 WHEREAS, as provided in the Plan, each other holder purchasing or otherwise electing to receive shares of Common Stock in accordance with the Plan agrees to be bound by this Agreement and the terms
herein; and 
 WHEREAS, the parties hereto wish to regulate the transfer of the shares of Common Stock and to provide for, among
other things, corporate governance rights and obligations, preemptive rights, and certain other rights. 
 NOW, THEREFORE, in
consideration of the mutual promises and agreements set forth herein, the adequacy of which are hereby acknowledged, the parties hereto agree as follows: 
 ARTICLE I  
 DEFINITIONS 

1.1 Definitions. As used in this Agreement, the following terms shall have the meanings set forth below: 

“Affiliate” means, with respect to any Person, any other Person who is an “affiliate” (as defined in Rule
12b-2 of the General Rules and Regulations under the Exchange Act) of such Person. 

 “Agreement” has the meaning set forth in the preamble to this Agreement.

 “Apollo” has the meaning set forth in the preamble to this Agreement. 

“Apollo Selling Stockholder” has the meaning set forth in Section 3.1(a). 

“Apollo Stockholders” means Apollo and each direct and indirect transferee thereof to whom shares of Common Stock (as
defined herein) are transferred in compliance with Section 2.4. 
 “Apollo Tag-Along Sale” has the meaning
set forth in Section 3.1(a). 
 “Board of Directors” means the Board of Directors of the Company.

 “Business Day” means any day other than a Saturday, Sunday or other day on which commercial banks in the
State of New York are authorized or required by law or executive order to close. 
 “Charter Documents” means
the Amended and Restated Certificate of Incorporation and the By-laws of the Company as in effect on the date hereof, copies of which are attached hereto as Exhibits A and B, respectively, as the same may be amended from time to time
in accordance with the terms hereof and thereof. 
 “Commission” means the Securities and Exchange Commission
or any similar agency having jurisdiction to enforce the Securities Act. 
 “Common Stock” means the Common
Stock, par value $0.01 per share, of the Company, or any other capital stock of the Company or any other Person into which such stock is reclassified or reconstituted (whether by merger, consolidation or otherwise). 

“Common Stock Equivalents” means any security or obligation that is, by its terms, convertible into or exchangeable or
exercisable for shares of Common Stock, including any option, warrant or other subscription or purchase right (including the IntermediateCo Preferred Stock and the IntermediateCo Notes) with respect to Common Stock or any Common Stock Equivalent.

 “Company” has the meaning set forth in the preamble to this Agreement. 

“Controlled Affiliate” means, with respect to any Person, an Affiliate of such Person as to which such Person owns at
least 80% of both the voting and economic interest. The Company and its Subsidiaries shall not be considered Controlled Affiliates of any Oaktree Stockholder. 
 “Drag-Along Notice” has the meaning set forth in Section 3.2(a). 
 “Drag-Along Rightholders” has the meaning set forth in Section 3.2(a). 

  
 2 

 “Drag-Along Sellers” has the meaning set forth in Section 3.2(a).

 “Exchange Act” means the United States Securities Exchange Act of 1934, as amended, and the rules and
regulations of the Commission thereunder. 
 “Excluded Transfers” means any transfer of Common Stock by an
Oaktree Stockholder (i) to another Oaktree Stockholder, (ii) to a transferee described in clause (i) or (ii) of the definition of “Permitted Transferee”, (iii) to an Apollo Stockholder or an Affiliate thereof, or
(iv) pursuant to Section 2.1(ii)(C) or Section 3.2. 
 “Governmental Authority” means the
government of any nation, state, city, locality or other political subdivision thereof, and any entity exercising executive, legislative, judicial, regulatory or administrative functions of or pertaining to government. 

“IntermediateCo” means Aleris International, Inc. (f/k/a AHC Intermediate Co.), a Delaware corporation and wholly-owned
Subsidiary of the Company. 
 “IntermediateCo Notes” means subordinated, unsecured notes issued pursuant to
that certain Note Indenture, dated as of the date hereof, by and between IntermediateCo and The Bank of New York Mellon Trust Company, N.A., as trustee, in an aggregate principal amount equal to Forty-Five and 00/100 Million Dollars ($45,000,000)
and having such other terms, covenants, and conditions set forth therein. 
 “IntermediateCo Preferred Stock”
means exchangeable preferred stock issued by IntermediateCo having the terms and conditions set forth in that certain Certificate of Designations for the Series A Exchangeable Preferred Stock, dated as of the date hereof. 

“Majority Oaktree Stockholders” means, at any time, the Oaktree Stockholders holding a majority of the shares of Common
Stock held by the Oaktree Stockholders at such time. 
 “New Issuance Closing Date” has the meaning set forth
in Section 4.1. 
 “New Issuance Notice” has the meaning set forth in Section 4.1. 

“New Securities” has the meaning set forth in Section 4.1. 

“Non-Oaktree Stockholders” means the Stockholders other than the Oaktree Stockholders. 

“Oaktree” has the meaning set forth in the preamble to this Agreement. 

“Oaktree Selling Stockholder” has the meaning set forth in Section 3.1(a). 

  
 3 

 “Oaktree Stockholders” means Oaktree and each direct and indirect
transferee thereof to whom shares of Common Stock (as defined herein) are transferred in compliance with Section 2.4. 

“Oaktree Tag-Along Sale” has the meaning set forth in Section 3.1(a). 

“Oaktree Transferred Shares” has the meaning set forth in Section 3.1(a). 

“Permitted Transferee” has the meaning set forth in Section 2.2. 

“Person” means any individual, firm, corporation, partnership, trust, incorporated or unincorporated association, joint
venture, joint stock company, limited liability company, Governmental Authority or other entity of any kind, and shall include any successor (by merger or otherwise) of such entity. 

“Plan” has the meaning set forth in the recitals to this Agreement. 

“Preemptive Rightholders” means, with respect to any issuance of New Securities, the Non-Oaktree Stockholders (other
than the Apollo Stockholders or the Sankaty Stockholders if, and only if, the relevant issuance is to an Apollo Stockholder or a Sankaty Stockholder, respectively). 
 “Proportionate Percentage” has the meaning set forth in Section 4.2. 
 “Proposed Price” has the meaning set forth in Section 4.1. 

“Public Offering” means any offer for sale of shares of Common Stock pursuant to an effective Registration Statement.

 “Qualified Public Offering” shall mean a Public Offering, other than any Public Offering or sale pursuant to
a registration statement on Form S-8 or comparable form; provided that immediately following consummation of such Public Offering, (i) the aggregate market capitalization of the outstanding common equity of the Company is not less than
$100,000,000 and (ii) the shares of Common Stock are listed on a national securities exchange or quoted on NASDAQ. 

“Registration Rights Agreement” means that certain Registration Rights Agreement, dated as of the date hereof, by and
among the Company and the Stockholders party thereto, as the same may be amended, supplemented or otherwise modified from time to time. 
 “Registration Statement” means a registration statement filed pursuant to the Securities Act. 
 “Rule 144” means Rule 144 under the Securities Act. 

“Sankaty” has the meaning set forth in the preamble to this Agreement. 

  
 4 

 “Sankaty Stockholders” means Sankaty and each direct and indirect
transferee thereof to whom shares of Common Stock (as defined herein) are transferred in compliance with Section 2.4. 

“Second Tag-Along Notice” has the meaning set forth in Section 3.1(c). 

“Securities Act” means the United States Securities Act of 1933, as amended, and the rules and regulations promulgated
thereunder. 
 “Stockholders” shall mean the Oaktree Stockholders, the Apollo Stockholders, the Sankaty
Stockholders, each other holder of Common Stock as of the date hereof, and each Person who becomes a signatory hereto after the date hereof from time to time (whether pursuant to the exercise of the IntermediateCo Preferred Stock or IntermediateCo
Notes or otherwise), and any transferees of any of them to which shares of Common Stock are transferred in accordance with the terms of this Agreement, and the term “Stockholder” shall mean any such Person. 

“Subject Purchaser” has the meaning set forth in Section 4.1. 

“Subsidiaries” means, with respect to any Person, any Affiliate controlled by such Person directly or indirectly through
one or more intermediaries. 
 “Tag-Along Notice” has the meaning set forth in Section 3.1(b). 

“Tag-Along Offered Securities” has the meaning set forth in Section 3.1(a). 

“Tag-Along Purchaser” has the meaning set forth in Section 3.1(a). 

“Tag-Along Rightholder” means, (i) in the case of an Oaktree Tag-Along Sale, each Stockholder other than an Oaktree
Stockholder and (ii) in the case of an Apollo Tag-Along Sale, each Stockholder other than an Apollo Stockholder or an Oaktree Stockholder. 
 “Tag-Along Rightholder’s Offer” has the meaning set forth in Section 3.1(b). 
 “Tag-Along Sale” has the meaning set forth in Section 3.1(a). 
 “Tag-Along Selling Stockholder” means any Apollo Selling Stockholder and any Oaktree Selling Stockholder. 
 “transfer” has the meaning set forth in Section 2.1 and “transferor” and “transferee” shall have correlative meanings. 

“Transferor Stockholder” has the meaning set forth in Section 2.2. 

  
 5 

 1.2 Terms and Usage Generally. The definitions in Section 1.1 shall apply
equally to both the singular and plural forms of the terms defined. Whenever the context may require, any pronoun shall include the corresponding masculine, feminine and neuter forms. All references herein to Articles, Sections, Annexes, Exhibits
and Schedules shall be deemed to be references to Articles and Sections of, and Annexes, Exhibits and Schedules to, this Agreement unless the context shall otherwise require. The words “include”, “includes” and
“including” shall be deemed to be followed by the phrase “without limitation”. 
 ARTICLE II 

RESTRICTIONS ON TRANSFER OF SHARES 
 2.1 Limitation on Transfer. No Stockholder shall, directly or indirectly, sell, offer, give, assign, hypothecate, pledge, encumber, grant a security interest in or otherwise dispose of (whether by
operation of law or otherwise) (each a “transfer”) any Common Stock or any right, title or interest therein or thereto, unless (i) such transfer complies with Section 2.4, (ii) such transfer (A) is permitted by
Section 2.2, (B) is made pursuant to Section 3.1 or 3.2, or (C) is made pursuant to any Registration Statement in accordance with the Registration Rights Agreement or Rule 144 and (iii) unless such transfer is made pursuant
to a Public Offering other than any Public Offering or sale pursuant to a registration statement on Form S-8 or comparable form or the Company first provides its written consent, the total number of holders of record of shares of Common Stock would
not exceed 450 during or after such transfer, as computed pursuant to Rule 12g5-1 of the Exchange Act for purposes of determining whether the Company would be subject to Section 12(g) of the Exchange Act. Any attempt to transfer any Common
Stock or any rights therein or thereto in violation of the preceding sentences shall be null and void ab initio. 

2.2 Permitted Transfers. Subject to any other restrictions on transfer herein contained in this Article II, (i) a Stockholder
that is an entity may transfer all (but not less than all) of its shares of Common Stock to its Controlled Affiliates so long as ownership by such transferee(s) would not cause the total number of holders of record of such shares of Common Stock (as
computed pursuant to Rule 12g5-1 of the Exchange Act) to increase at any time and so long as any such transferee remains a Controlled Affiliate of the transferor, (ii) a Stockholder that is an individual may transfer all or a portion of his
shares of Common Stock (x) to a lineal descendent or member of the immediate family of such Stockholder, (y) to a trust created for the sole benefit of such Stockholder and any Person described in clause (ii)(x) above or, (z) upon the
death or legal incompetence of such Stockholder, to such Stockholder’s heir, executor, administrator, testamentary trustee, legatee or beneficiary, as applicable; provided, however, that in the case of clauses (ii)(x) and (ii)(y) that
such Stockholder retains the exclusive power to exercise all rights under this Agreement with respect to the transferred interests and the total number of holders of record of such shares of Common Stock (as computed pursuant to Rule 12g5-1 of the
Exchange Act, and including such Stockholder and all transferees pursuant to this clause (ii)(x) and (ii)(y)) shall not exceed 3, (iii) a Stockholder may transfer all or a portion of its shares of Common Stock to another

  
 6 

 
Stockholder, (iv) a Stockholder may transfer all (but not a portion) of its shares of Common Stock to a single transferee and (v) on or prior to June 30, 2010, a Stockholder that,
as of the Distribution Record Date (as defined in the Plan), held any European Term Loan Claims (as defined in the Plan) may transfer all or a portion of its shares of Common Stock to any Person who, as of the Distribution Record Date, held European
Term Loan Claims (any transferee referred to in the preceding clauses (i), (ii), (iii), (iv) and (v) are referred to hereinafter as a “Permitted Transferee”). A Permitted Transferee of Common Stock pursuant to this
Section 2.2 may transfer its Common Stock pursuant to this Section 2.2 only to the Stockholder who transferred such Common Stock to the Permitted Transferee (the “Transferor Stockholder”) or to a Person that would be a
Permitted Transferee of such Transferor Stockholder at the time of such subsequent transfer. 
 2.3 Permitted Transfer
Procedures. If any Stockholder wishes to transfer Common Stock to a Permitted Transferee under Section 2.2, such Stockholder shall give notice to the Company of its intention to make such a transfer not less than twenty (20) Business
Days prior to effecting such transfer, which notice shall state the name and address of each Permitted Transferee to whom such transfer is proposed, the relationship of such Permitted Transferee to such Stockholder and the number of shares of Common
Stock proposed to be transferred to such Permitted Transferee. 
 2.4 Transfers in Compliance with Law; Substitution of
Transferee. No transfer of Common Stock may be made by any Stockholder unless (a) the transferee has agreed in writing to be bound by the terms and conditions of this Agreement pursuant to an instrument substantially in the form attached
hereto as Exhibit C, (b) the transfer complies in all respects with the applicable provisions of this Agreement and (c) the transfer complies in all respects with applicable federal and state securities laws, including the
Securities Act. If requested by the Company, an opinion of counsel to such transferring Stockholder (including in-house counsel), or such other evidence as is reasonably satisfactory to the Company, shall be supplied to the Company, at such
transferring Stockholder’s expense, to the effect that such transfer complies with the applicable federal and state securities laws. Upon becoming a party to this Agreement, a transferee shall enjoy the same rights and be subject to the same
obligations as the transferring Stockholder hereunder with respect to the Common Stock transferred to such transferee. 
 2.5
Transfers to a Competitor. In addition to any other restrictions on transfer herein contained in this Article II, except for transactions effected pursuant to Section 3.1 or Section 3.2, no Stockholder may transfer any Common Stock
to a Person that is, or is affiliated in any manner with any other Person that is, in the reasonable judgment of the Board of Directors, in direct competition with, or controls any Person in direct competition with, the Company or any of its
Subsidiaries. 
 2.6 Holdback Agreement. Each Stockholder agrees, if requested (pursuant to a timely written notice) by
the managing underwriter or underwriters in an underwritten offering of Common Stock (including shares of Common Stock issued or 

  
 7 

 
issuable upon the conversion or exercise of any Common Stock Equivalents), to enter into customary lock-up agreements pursuant to which such Stockholder shall agree not to effect any public sale
or distribution of any of its Common Stock or any Common Stock Equivalents, including a sale pursuant to Rule 144 (except as part of such underwritten offering) promulgated under the Securities Act, or offer to sell, contract to sell (including
any short sale), grant any option to purchase or enter into any hedging or similar transaction with the same economic effect as a sale of any Common Stock or Common Stock Equivalents. 

ARTICLE III 

TAG-ALONG RIGHTS; DRAG-ALONG RIGHTS 
 3.1 Tag-Along Rights 
 (a) If (i) any Oaktree Stockholder (an
“Oaktree Selling Stockholder”) proposes to transfer, directly or indirectly, Common Stock to one or more Persons (excluding any Excluded Transfers or any transfer or transfers of Common Stock that, in the aggregate for all such
transfers, do not represent more than two percent (2%) of the Common Stock held collectively by the Oaktree Stockholders as of the date hereof) (an “Oaktree Tag-Along Sale”) or (ii) one or more Oaktree Stockholders
transfers, pursuant to one or more transfers, more than five percent (5%) of the shares of Common Stock held by all of the Oaktree Stockholders as of the date hereof to the Apollo Stockholders or Affiliates thereof (all such transferred shares,
the “Oaktree Transferred Shares”) and, within 90 days of such transfer, such Apollo Stockholder or Affiliate (each, an “Apollo Selling Stockholder”) proposes to transfer all or any portion of such Oaktree
Transferred Shares (determined on a “last-in, first-out” basis) to any Person other than an Affiliate thereof (an “Apollo Tag-Along Sale,” and an Oaktree Tag-Along Sale or an Apollo Tag-Along Sale is referred to herein as
a “Tag-Along Sale”), then each Tag-Along Rightholder shall have the right to sell to such proposed transferee (the “Tag-Along Purchaser”), upon the terms set forth in the Tag-Along Notice, any number of shares of
Common Stock held by such Tag-Along Rightholder (the “Tag-Along Offered Securities”) such that (A) the quotient obtained by dividing (x) the number of shares of Common Stock to be sold by such Tag-Along Rightholder in such
Tag-Along Sale by (y) the number of shares of Common Stock held by such Tag-Along Rightholder (on a fully diluted basis) immediately prior to such Tag-Along Sale is less than or equal to (B) (1) in the case of an Oaktree Tag-Along
Sale, the quotient obtained by dividing (x) the number of shares of Common Stock to be sold by the Tag-Along Selling Stockholder in such Tag-Along Sale by (y) the number of shares of Common Stock held by all Oaktree Stockholders in the
aggregate (on a fully diluted basis) immediately prior to such Tag-Along Sale or (2) in the case of an Apollo Tag-Along Sale, the quotient obtained by dividing (x) the number of Oaktree Transferred Shares to be sold by the Tag-Along
Selling Stockholder in such Tag-Along Sale by (y) the number of shares of Common Stock held by all Oaktree Stockholders in the aggregate (on a fully diluted basis) immediately prior to the transfer to the Apollo Stockholders of the Oaktree
Transferred Shares. For the avoidance of doubt, an Apollo Tag-Along Sale shall include only the 

  
 8 

 
Oaktree Transferred Shares (determined on a “last in, first out” basis) and no other shares being transferred. 
 (b) The Tag-Along Selling Stockholder intending to transfer Common Stock to a Tag-Along Purchaser shall give written notice to each Tag-Along Rightholder of each proposed transfer by it of Common Stock
that gives rise to the rights of the Tag-Along Rightholders set forth in this Section 3.1, at least twenty (20) days prior to the proposed consummation of such transfer, setting forth the name of such Tag-Along Selling Stockholder, the
number of shares of Common Stock that the Tag-Along Selling Stockholder proposes to transfer to the proposed Tag-Along Purchaser, the name and address of the proposed Tag-Along Purchaser, the proposed amount and form of consideration and terms and
conditions of the transaction offered by such Tag-Along Purchaser, the percentage of each class of Common Stock that such Tag-Along Rightholder may sell to such Tag-Along Purchaser (determined in accordance with Section 3.1(a)) and the per
share purchase price (or a reasonable estimate of the maximum and minimum per share purchase price) (the “Tag-Along Notice”). The tag-along rights provided by this Section 3.1 must be exercised by any Tag-Along Rightholder
wishing to sell its Common Stock within ten (10) days following receipt of the Tag-Along Notice, by delivery of a written irrevocable offer (a “Tag-Along Rightholder’s Offer”) to the Tag-Along Selling Stockholder
indicating such Tag-Along Rightholder’s wish to have a portion of its Common Stock included in the sale contemplated by this Section 3.1 and specifying the number of Tag-Along Offered Securities (up to the maximum number of Tag-Along
Offered Securities as determined in accordance with Section 3.1(a)) it wishes to sell, provided that any Tag-Along Rightholder may waive its rights under this Section 3.1(b) prior to the expiration of such ten (10) day period
by giving written notice to the Tag-Along Selling Stockholder, with a copy to the Company. Subject to the other terms herein, delivery of the Tag-Along Rightholder’s Offer will constitute an irrevocable commitment by such Tag-Along Rightholder
to sell its Common Stock on the terms set forth in such Tag-Along Rightholder’s Offer. The failure of a Tag-Along Rightholder to respond within such ten (10) day period shall be deemed to be a waiver of such Tag-Along Rightholder’s
rights under this Section 3.1 with respect to the transfer on the terms set forth in the Tag-Along Notice. 
 (c) The
Tag-Along Selling Stockholder shall use its commercially reasonable efforts to obtain the inclusion in the proposed Tag-Along Sale of the entire number of shares of Common Stock that the Tag-Along Rightholders timely elect to have included in such
Tag-Along Sale. If the Tag-Along Selling Stockholder is unable to obtain such inclusion of all such shares of Common Stock, then the Tag-Along Selling Stockholder shall give written notice of such fact to each Tag-Along Rightholder that timely
delivered a Tag-Along Rightholder’s Offer pursuant to Section 3.1(b), setting forth the maximum number of shares of Common Stock that the proposed Tag-Along Purchaser is willing to purchase and the total number of shares of Common Stock
that the Tag-Along Selling Stockholder and the Tag-Along Rightholders timely elected to include in such Tag-Along Sale (the “Second Tag-Along Notice”). The tag-along rights provided by this Section 3.1 must then be re-asserted
by any Tag-Along Rightholder still wishing to sell its Common Stock within ten (10) days following receipt of the Second Tag-Along 

  
 9 

 
Notice by delivery of a second Tag-Along Rightholder’s Offer to the Tag-Along Selling Stockholder indicating such Tag-Along Rightholder’s wish to have a portion of its Common Stock
included in the sale contemplated by this Section 3.1 and specifying the number of Tag-Along Offered Securities (up to the maximum number of Tag-Along Offered Securities as determined in accordance with Section 3.1(a) it wishes to sell),
provided that any Tag-Along Rightholder may waive its rights under this Section 3.1(c) prior to the expiration of such ten (10) day period by giving written notice to the Tag-Along Selling Stockholder, with a copy to the Company.
Subject to the other terms herein, delivery of the second Tag-Along Rightholder’s Offer will constitute an irrevocable commitment by such Tag-Along Rightholder to sell its Common Stock on the terms set forth in such second Tag-Along
Rightholder’s Offer. The failure of a Tag-Along Rightholder to respond within such ten (10) day period shall be deemed to be a waiver of such Tag-Along Rightholder’s rights under this Section 3.1 with respect to the transfer on
the terms set forth in the Tag-Along Notice. If the Tag-Along Selling Stockholder is again unable to obtain inclusion in the proposed Tag-Along Sale of all shares of Common Stock that the Tag-Along Rightholders timely elect to have included in such
Tag-Along Sale, then the number of shares of Common Stock to be sold in such Tag-Along Sale shall be allocated on a pro rata basis among the Tag-Along Selling Stockholder and each Tag-Along Rightholder who shall have timely elected to participate in
such Tag-Along Sale by delivery of a second Tag-Along Rightholder’s Offer in proportion to the total number of shares of Common Stock then owned by each such Person (calculated on a fully-diluted basis). 

(d) If (x) the Tag-Along Selling Stockholder has not consummated the Tag-Along Sale within 120 days of the delivery of the
Tag-Along Notice (for any reason other than the failure of a Tag-Along Rightholder to sell shares it committed to sell under Section 3.1(b) or Section 3.1(c), as the case may be) or if (y) the terms and conditions of the Tag-Along
Sale shall change in any material way from those in the Tag-Along Notice, the Tag-Along Notice and any Tag-Along Rightholder’s Offer shall be null and void, and it shall be necessary for a separate Tag-Along Notice to be furnished, and the
terms and provisions of this Section 3.1 separately complied with, in order to consummate such proposed Tag-Along Sale pursuant to this Section 3.1. Notwithstanding any other provision of this Section 3.1, there shall be no liability
on the part of any Tag-Along Selling Stockholder to any other Stockholder arising from the failure of any Tag-Along Selling Stockholder to consummate the Tag-Along Sale for any reason, and the decision to consummate such Tag-Along Sale shall be in
the sole discretion of the Tag-Along Selling Stockholder. 
 3.2 Drag-Along Rights. 

(a) If, on any date following the date hereof, Stockholders holding a majority of the outstanding shares of Common Stock as of such date
(collectively, “Drag-Along Rightholders”) propose to transfer, in one or a series of related bona fide arm’s length transactions, to either (i) a third party that is not an Affiliate of any Drag-Along Rightholder or
(ii) a buy-out group established to purchase the Company or its business that includes any Drag-Along Rightholder or its Affiliates, whether as Affiliates of such group or otherwise, so long as such Drag-Along Rightholder

  
 10 

 
and its Affiliates control no more than 10% of the voting securities of such buy-out group, (x) more than fifty percent (50%) of the outstanding Common Stock as of the date of such
proposal, or (y) all or substantially all of the assets of the Company and its Subsidiaries, then the Drag-Along Rightholders may require the Company and the other Stockholders (the “Drag-Along Sellers”) to sell their
proportionate amount of each class of Common Stock being sold in such sale by the Drag-Along Rightholders, or, in the case of any asset sale or merger, to vote its shares as further provided in Section 3.3; and the Drag-Along Rightholders may
send written notice (the “Drag-Along Notice”) to the Drag-Along Sellers notifying them of such election. 

(b) If the Drag-Along Rightholders have not consummated the proposed sale to which reference is made in the Drag-Along Sale Notice
within 180 days following delivery of the Drag-Along Sale Notice, the Drag-Along Sale Notice shall be null and void, each Drag-Along Seller shall be released from its obligation under the Drag-Along Notice and it shall be necessary for a separate
Drag-Along Notice to be furnished and the terms and provisions of this Section 3.2 separately complied with, in order to consummate such proposed sale pursuant to this Section 3.2. 

3.3 Provisions Applicable to Tag-Along and Drag-Along Sales. 

(a) Each Stockholder participating in a proposed sale under Section 3.1 or 3.2, whether in its capacity as a shareholder, officer
or director of the Company or otherwise, shall take or cause to be taken all such reasonable actions consistent with the terms of this Agreement as may be necessary or reasonably desirable in order expeditiously to consummate such sale and any
related transactions, including: executing, acknowledging and delivering consents, assignments, waivers and other documents or instruments; voting any shares of Common Stock over which such Stockholder has voting power; waiving any dissenter’s
rights, appraisal rights or similar rights that such Stockholder may have in connection therewith; furnishing information and copies of documents; filing applications, reports, returns, filings and other documents or instruments with governmental
authorities; and otherwise reasonably cooperating with the Tag-Along Selling Stockholders or Drag-Along Rightholders, as the case may be, and the prospective buyer. Without limiting the generality of the foregoing, each such Stockholder agrees to
execute and deliver such agreements as may be reasonably specified by the Tag-Along Selling Stockholders or Drag-Along Rightholders, as the case may be (so long as the Tag-Along Selling Stockholders or Drag-Along Rightholders, as the case may be,
shall be subject to the same terms), including agreements to (a) make individual customary representations, warranties, covenants and other agreements as to, among other things, the unencumbered title to its Common Stock and the power,
authority and legal right to transfer such Common Stock, (b) be severally, not jointly, liable with all other sellers (whether by purchase price adjustment, indemnity payments or otherwise) in respect of representations, warranties, covenants
and other agreements in respect of the Company and its Subsidiaries, and (c) be subject to confidentiality restrictions in respect of the business of the Company and its Subsidiaries; provided, however, that, with respect to
representations, warranties and covenants of the type described in clause (b) above, the aggregate amount of such liability will not exceed the lesser of (i) such Stockholder’s pro rata portion of any such liability, to be determined
in 

  
 11 

 
accordance with such Stockholder’s portion of the total amount of Common Stock included in such sale or (ii) the proceeds actually received by such Stockholder in connection with such
sale. 
 (b) The closing of a sale pursuant to Section 3.1 or 3.2 will take place at such time and place as the Tag-Along
Selling Stockholders or Drag-Along Rightholders, as the case may be, shall reasonably specify by notice to each participating Stockholder. At the closing, each participating Stockholder shall deliver the certificates evidencing the Common Stock to
be sold by such Stockholder, duly endorsed, or accompanied written instruments of transfer in form satisfactory to the purchaser duly executed by the Stockholder, free and clear of any liens or encumbrances, against delivery of the applicable
consideration. 
 (c) Except as provided in Section 3.3(d) below, in any sale pursuant to Section 3.1 or 3.2, the
Tag-Along Selling Stockholders or Drag-Along Rightholders, as the case may be, and the other participating Stockholders shall have the option to receive the same terms with respect to any sale of Common Stock (including the per share price and the
type of consideration to be received per share) and shall be subject to the same conditions, and all such Tag-Along Selling Stockholders or Drag-Along Rightholders, as the case may be, and other participating Stockholders shall receive the proceeds
from such sale (allocated as provided herein) at the same time. 
 (d) In the event the consideration to be paid for Common
Stock in a proposed sale pursuant to Section 3.1 or 3.2 includes any securities, and the receipt thereof by a particular Stockholder would require under applicable securities law (i) the registration or qualification of such sale or
securities or of any person as a broker or dealer or agent with respect to such securities or (ii) the provision of information, pursuant to Regulation D of the Securities Act or comparable securities laws, regarding the Company, the securities
or the issuer to the Stockholder, the provision of which would, as determined by the Board of Directors acting reasonably, impose a substantial burden or expense on the Company or the prospective purchaser, then the selling Stockholders will have
the right, but not the obligation, to cause to be paid to such Stockholder in lieu of such securities an amount in cash equal to the fair market value of such securities as of the date of the applicable sale. 

ARTICLE IV 

PREEMPTIVE RIGHTS 
 4.1 Offering Notice. (a) If the Company at any time or from time to time wishes to issue and sell to any Oaktree Stockholder, any Apollo Stockholder, any Sankaty Stockholder or any of their
respective Affiliates (each, a “Subject Purchaser”) (i) any shares of capital stock of the Company (which, for the avoidance of doubt, shall not include any shares of capital stock issued upon the exchange of the IntermediateCo
Notes or the IntermediateCo Preferred Stock) or (ii) any security convertible into or exchangeable for capital stock (each of (i) or (ii), the “New Securities”), then the Company shall offer a percentage of the New
Securities to the Preemptive Rightholders 

  
 12 

 
(determined in accordance with Section 4.2) on the same terms by sending written notice (the “New Issuance Notice”) to the Preemptive Rightholders at least fifteen
(15) Business Days prior to the issuance and sale of the New Securities, which shall state (a) the number of shares of New Securities proposed to be issued and sold or the principal amount of such New Securities in the case of convertible
debt securities, (b) the proposed purchase price of the New Securities that the Company is willing to accept (the “Proposed Price”) and (c) the date on which the New Securities will be sold to the Subject Purchaser and any
accepting Preemptive Rightholders (the “New Issuance Closing Date”). Upon delivery of the New Issuance Notice, such offer shall be irrevocable unless and until the rights provided for in Section 4.2 shall have been waived or
shall have expired or Company determines not to proceed with the New Securities issuance to the Subject Purchaser. 
 (b)
Notwithstanding clause (a), if in order to address short term liquidity needs or covenant compliance in respect of any outstanding loan facility or other agreement regarding indebtedness of the Company, the Board of Directors reasonably determines
that it is necessary due to the financial condition or other substantial need of the Company to issue securities of the Company that would otherwise be required to be offered to the Stockholders under this Article IV prior to their issuance, the
Company may issue such securities without first complying with this Article IV; provided that within thirty (30) days after such issuance, it offers each Preemptive Rightholder the opportunity to purchase the number of such equity securities or
amount of debt securities that such Preemptive Rightholder would be entitled to purchase pursuant to this Article IV by sending written notice to the Preemptive Rightholders, which notice shall contain the information required in the New
Issuance Notice. In the event of an offer made by the Company pursuant to this Section 4.1(b), the timing and procedures for the exercise period and closing of such offer shall be the same as those set forth in Section 4.2,
Section 4.3, Section 4.4 and Section 4.5, with appropriate modifications to reflect the post-issuance delivery of the notice as contemplated in this Section 4.1(b). 

4.2 Stockholder Option. For a period of fifteen (15) Business Days after the giving of the New Issuance Notice pursuant to
Section 4.1, each Preemptive Rightholder shall have the right to purchase any or all of its Proportionate Percentage of the New Securities at a purchase price equal to the Proposed Price and upon the terms and conditions set forth in the New
Issuance Notice. Each such Preemptive Rightholder shall have the right to purchase up to that percentage of the New Securities determined by dividing (a) the total number of shares of Common Stock then owned by such Preemptive Rightholder
determined on a fully diluted basis by (b) the total number of shares of Common Stock held by all Preemptive Rightholders and the Oaktree Stockholders determined on a fully diluted basis (the “Proportionate Percentage”).

 4.3 Exercise of Options. The right of each Non-Oaktree Stockholder to purchase the New Securities shall be exercisable
by delivering written notice of the exercise thereof, prior to the expiration of the fifteen (15) Business Day period referred to in Section 4.2, which notice shall state the amount of New Securities that such Preemptive Rightholder elects
to purchase. The failure of a Preemptive Rightholder to 

  
 13 

 
respond within such fifteen (15) Business Day period shall be deemed to be a waiver of such Preemptive Rightholder’s rights under Section 4.2 with respect to the issuance of
securities on the terms set forth in the New Issuance Notice. 
 4.4 Closing. The closing of the purchase of New
Securities shall be held at the principal office of the Company at 11:00 a.m. local time on the New Issuance Closing Date or at such other time and place as the parties to the transaction may agree. At such closing, the Company shall deliver
certificates or evidence of indebtedness representing the New Securities, and the New Securities shall be issued free and clear of all liens and encumbrances and the Company shall so represent and warrant, and further represent and warrant that such
New Securities shall be, in the case of equity securities, upon issuance thereof to the subscribing Preemptive Rightholders and after payment therefore, duly authorized, validly issued, fully paid and nonassessable. Each Preemptive Rightholder
purchasing the New Securities shall deliver at the closing cash payment in full in immediately available funds for the New Securities purchased by it. At such closing, all of the parties to the transaction shall execute such additional documents as
are otherwise necessary or appropriate to consummate such transactions. 
 4.5 Sale to Subject Purchaser. If the
Preemptive Rightholders do not elect to purchase all of the New Securities available to them under Section 4.2, the Company may sell to the Subject Purchaser the New Securities not so purchased by the Preemptive Rightholders pursuant to
Section 4.2 on terms and conditions that are no more favorable to the Subject Purchaser than those set forth in the New Issuance Notice. If, for any reason, such sale is not consummated within 120 days of the date upon which the New Issuance
Notice is given or if the principal terms of such sale change such that the terms are more favorable in any material respect to the Subject Purchaser than those in the New Issuance Notice, then the restrictions provided for herein shall again become
effective, and no issuance and sale of New Securities may be made thereafter by the Company without again offering the same to the Preemptive Rightholder in accordance with this Article IV. The closing of any issue and purchase of New Securities
pursuant to this Section 4.5 shall be held at any time (prior to the end of such 120 day period) and place as the parties to the transaction may agree. 
 ARTICLE V 
 CORPORATE GOVERNANCE 

5.1 Board of Directors. 
 (a) To the extent permitted by law, each Stockholder shall vote all voting securities of the Company over which such Stockholder has voting control, and shall take all other reasonably necessary or
desirable actions within such Stockholder’s control (whether in such Stockholder’s capacity as a stockholder, director, member of a board committee or officer of the Company or otherwise, and including attendance at meetings in person or
by proxy for purposes of obtaining a quorum and execution of written consents in lieu of meetings), and the Company shall take all necessary and desirable actions within its control (including calling special board and stockholder

  
 14 

 
meetings), so that the Board of Directors shall consist of five (5) Directors or such different number of directors as may be designated from time to time by the Board of Directors, of which
(a) one Director shall be the Chief Executive Officer of the Company (in his capacity as such) and (b) the remaining Directors shall be designated by the Majority Oaktree Stockholders. Once designated, Directors will serve on the Board of
Directors until they resign or are removed pursuant to the terms of this Agreement, or their earlier death, disability or incapacity. The initial Board of Directors shall be as set forth below: 

(i) Steven J. Demetriou 
 (ii) Ara Abrahamiam 
 (iii) Scott Graves 

(iv) Brian Laibow 
 (v) Kenneth Liang 
 (b) A Director designated by the Majority Oaktree
Stockholders may be removed from the Board of Directors, with or without cause, upon, and only upon, the affirmative vote of the Majority Oaktree Stockholders in accordance with this Section 5.1(b). Each Stockholder shall vote its shares
of Common Stock for the removal of any such Director upon the request of the Majority Oaktree Stockholders. 
 (c) If any
Director designated by the Majority Oaktree Stockholders resigns or is removed in accordance with Section 5.1(b), or a vacancy in any directorship should occur for any reason, each Stockholder shall, before the transaction of any other business
by the Stockholders or the Board of Directors, vote its shares of Common Stock for the election of a successor or replacement designated by the Majority Oaktree Stockholders. Such successor or replacement director shall be elected on or as soon
as possible after the date of such resignation or removal. 
 5.2 Stockholder Action. From and after the execution of
this Agreement, each Stockholder shall vote its shares of Common Stock at any regular or special meeting of stockholders of the Company or in any written consent executed in lieu of such a meeting of stockholders, in either case upon any matter
arising under this Agreement submitted to a vote of the Stockholders in such a manner as to implement the terms of this Agreement, and shall take all other actions necessary to ensure that the Charter Documents do not, at any time hereafter,
conflict in any respect with the provisions of this Agreement. 

  
 15 

 ARTICLE VI 
 STOCK CERTIFICATE LEGEND; BOOKS AND RECORDS; INSPECTION; FINANCIAL STATEMENTS 
 6.1 Stock Certificate Legend. A copy of this Agreement shall be filed with the Secretary of the Company and kept with the records of the Company. Each certificate representing Common Stock now held
or hereafter acquired by any Stockholder shall for as long as this Agreement is effective bear legends substantially in the following forms: 
 THIS SECURITIES EVIDENCED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED, OR ANY NON-U.S. OR STATE SECURITIES LAWS AND MAY NOT BE OFFERED, SOLD, PLEDGED OR
OTHERWISE TRANSFERRED UNLESS REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OF THE UNITED STATES AND THE SECURITIES REGULATORY AUTHORITIES OF APPLICABLE STATES OR UNLESS AN EXEMPTION FROM SUCH REGISTRATION IS AVAILABLE OR PURSUANT TO A
WRITTEN OPINION OF COUNSEL FOR THE COMPANY (OR SUCH OTHER EVIDENCE AS IS REASONABLY ACCEPTABLE TO THE COMPANY) THAT SUCH REGISTRATION IS NOT REQUIRED. 
 THE SALE, ASSIGNMENT, HYPOTHECATION, PLEDGE, ENCUMBRANCE OR OTHER DISPOSITION (EACH A “TRANSFER”) AND VOTING OF ANY OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE ARE RESTRICTED BY THE
TERMS OF THE STOCKHOLDERS AGREEMENT, DATED JUNE 1, 2010, BY AND AMONG THE COMPANY AND THE STOCKHOLDERS NAMED THEREIN, A COPY OF WHICH MAY BE INSPECTED AT THE COMPANY’S PRINCIPAL OFFICE. THE COMPANY WILL NOT REGISTER THE TRANSFER OF SUCH
SECURITIES ON THE BOOKS OF THE COMPANY UNLESS AND UNTIL THE TRANSFER HAS BEEN MADE IN COMPLIANCE WITH THE TERMS OF THE STOCKHOLDERS AGREEMENT. 
 6.2 Information Rights. 
 (a) The Company shall cause to be furnished to
each Stockholder that owns more than 3% of the then issued and outstanding shares of Common Stock (disregarding any dilution of such Stockholder’s percentage ownership of Common Stock other than as a result of any issuance of New Securities
pursuant to Section 4.1 in which such Stockholder fails to acquire New Securities) and, upon written request, to each other requesting Stockholder: 

  
 16 

 (i) within 60 days after the end of each quarterly accounting period in each fiscal year of
the Company (other than any quarterly accounting period ending on the last day of the fiscal year of the Company), the unaudited consolidated balance sheet of the Company and its Subsidiaries as of the end of such period and the related unaudited
consolidated statement of income and cash flows for such period and for the portion of such fiscal year ended on the last day of such period (except that, with respect to the first quarterly accounting period following the date of this Agreement,
such financial statements shall be delivered within 90 days after the end of such quarterly period); and 
 (ii) within 120
days after the end of each fiscal year of the Company, the consolidated balance sheet of the Company and its Subsidiaries as of the end of such year and the related consolidated statement of income and cash flows for such year, each of which shall
be audited to the extent practicable, as determined by the Board of Directors. 
 (b) The Company shall not be required to
comply with the covenants set forth in Section 6.2(a) during the periods, if any, when the Company is subject to the periodic reporting requirements of the Exchange Act. 
 6.3 Confidentiality. Each of the Stockholders agrees, for so long as such Stockholder owns shares of Common Stock and for a period of two (2) years following (i) the date upon which such
Stockholder ceases to own shares of Common Stock, or, if earlier, (ii) the last date upon which such Stockholder receives any confidential, non-public information hereunder, to keep confidential any non-public information provided to it by the
Company; provided, however, that nothing herein will limit the disclosure of any information (a) to the extent required by law, statute, rule, regulation, judicial process, subpoena or court order or requested by any governmental agency
or other regulatory authority (including any self-regulatory organization having jurisdiction or claiming to have jurisdiction over such Stockholder); (b) that is in the public domain or becomes generally available to the public other than as a
result of the disclosure by the parties in violation of this Agreement; (c) to a Stockholder’s Affiliates; provided that such Affiliates shall have been advised of this Agreement and shall have expressly agreed to be bound by the
confidentiality provisions hereof and the applicable Stockholder shall be responsible for any breach of this Agreement by any of its Affiliates and such Stockholder agrees, at its sole expense, to take reasonable measures (including but not limited
to court proceedings) to restrain its Affiliates from prohibited or unauthorized disclosure or use of any such confidential information, and such Affiliates are not a direct competitor of the Company or any of its Subsidiaries; or (d) to any
prospective purchaser of a Stockholder’s shares of Common Stock; provided that (i) such prospective purchaser shall have been advised of this Agreement and shall have expressly agreed to be bound by the confidentiality provisions
hereof and (ii) such prospective purchaser is not a direct competitor of the Company or any of its Subsidiaries or any Person who is an Affiliate of any direct competitor of the Company or any of its Subsidiaries. 

  
 17 

 ARTICLE VII 
 MISCELLANEOUS 
 7.1 Notices. All notices, demands or other
communications provided for or permitted hereunder shall be made in writing and shall be by registered or certified first class mail, return receipt requested, telecopier, courier service, overnight mail or personal delivery: 

(i) if to the Company: 
 Aleris Holding Company 
 25825 Science Park Drive, Suite 400 

Beachwood, Ohio 44122 
 Facsimile No.: (216) 910-3654 
 Attention: Christopher R. Clegg 

(ii) if to any of the Oaktree Stockholders: 
 Oaktree Capital Management, L.P. 
 333 South Grand Avenue, 28th Floor 

Los Angeles, California 90071 
 Facsimile No.:   (213) 830-8810 

   (213) 830-6499 
 Attention:   Scott L. Graves 
 Brian Laibow 

(iii) if to any of the Apollo Stockholders: 
 Apollo Management VII, L.P. 
 c/o Apollo Management 

9 West 57th Street 
 New York, New York 10019 
 Facsimile No.: (212) 515-3263 

Attention:   Eric L. Press 
 Matthew R. Michelini 
 (iv) if to any of the Sankaty Stockholders: 

Sankaty Advisors LLC 
 111 Huntington Ave 
 Boston, Massachusetts 02199 

Facsimile No.: (617) 516-2710 
 Attention: Jeff Robinson 

  
 18 

 (v) if to any other Stockholder, to such address set forth on the signature pages hereto
for such Stockholder or in the books and records of the Company, as applicable. 
 Any party may by notice given in accordance with this
Section 7.1 designate another address or person for receipt of notices hereunder. All such notices and communications shall be deemed to have been duly given when delivered by hand, if personally delivered; when delivered by courier or
overnight mail, if delivered by commercial courier service or overnight mail; five (5) Business Days after being deposited in the mail, postage prepaid, if mailed; and when receipt is mechanically acknowledged, if telecopied. 

7.2 Amendment and Waiver. 
 (a) No failure or delay on the part of any party hereto in exercising any right, power or remedy hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any such right,
power or remedy preclude any other or further exercise thereof or the exercise of any other right, power or remedy. The remedies provided for herein are cumulative and are not exclusive of any remedies that may be available to the parties hereto at
law, in equity or otherwise. 
 (b) Any amendment, supplement or modification of or to any provision of this Agreement, any
waiver of any provision of this Agreement, and any consent to any departure by any party from the terms of any provision of this Agreement, shall be effective (i) only if it is made or given in writing and signed by the Majority Oaktree
Stockholders and (ii) only in the specific instance and for the specific purpose for which made or given; provided, that no such amendment, modification, supplement or waiver that adversely and disproportionately affects the rights of
the Non-Oaktree Stockholders shall be made or given without the prior written consent of the holders of a majority of the shares of Common Stock held by the Non-Oaktree Stockholders voting as a group; provided, further, however, that
no such amendment, modification, supplement or waiver that materially and adversely affects the rights or obligations of any Stockholder individually (as opposed to as a group) shall be made or given without the prior written consent of such
Stockholder. 
 (c) Notwithstanding the foregoing, this Agreement may be amended by the Company without the consent of the
Stockholders (i) to join any officer, director or employee of, or consultant or advisor to, the Company or any Affiliate of the Company who holds or will hold Common Stock to this Agreement as a “Stockholder,” (ii) to join any
transferee of a Stockholder to this Agreement as a “Stockholder,” and (iii) to join any holder of IntermediateCo Preferred Stock or IntermediateCo Notes to this Agreement as a “Stockholder” upon its exchange of
IntermediateCo Preferred Stock or IntermediateCo Notes. 
 7.3 Specific Performance. The parties hereto intend that each
of the parties have the right to seek damages or specific performance in the event that any other party hereto fails to perform such party’s obligations hereunder. Therefore, if any party shall institute any action or proceeding to enforce the
provisions hereof, any party against 

  
 19 

 
whom such action or proceeding is brought hereby waives any claim or defense therein that the plaintiff party has an adequate remedy at law. 

7.4 Headings. The headings in this Agreement are for convenience of reference only and shall not limit or otherwise affect the
meaning hereof. 
 7.5 Severability. If any one or more of the provisions contained herein, or the application thereof in
any circumstance, is held invalid, illegal or unenforceable in any respect for any reason, the validity, legality and enforceability of any such provision in every other respect and of the remaining provisions hereof shall not be in any way
impaired, unless the provisions held invalid, illegal or unenforceable shall substantially impair the benefits of the remaining provisions hereof. 
 7.6 Entire Agreement. This Agreement, together with the exhibits and schedules hereto, is intended by the parties as a final expression of their agreement and intended to be a complete and
exclusive statement of the agreement and understanding of the parties hereto in respect of the subject matter contained herein and therein. There are no restrictions, promises, warranties or undertakings, other than those set forth or referred to
herein or therein. This Agreement, together with the exhibits hereto, supersede all prior agreements and understandings between the parties with respect to such subject matter. 

7.7 Term of Agreement. This Agreement shall become effective upon the execution hereof and shall terminate automatically without
any action on the part of the Stockholders upon the earlier of (i) a Qualified Public Offering and (ii) with respect to each Stockholder, when such Stockholder no longer owns any Common Stock; provided, however, that
(i) Section 6.3 and this Article VII (other than Section 7.8) shall survive such termination and (ii) in the case of termination due to a Qualified Public Offering, Section 2.6 shall survive such termination for 180 days
following the consummation of such Qualified Public Offering; provided, further, however, that nothing in this Section 7.7 shall relieve any party of any liability for a breach of this Agreement prior to the effective date of
termination. 
 7.8 After-Acquired Securities. All of the provisions of this Agreement shall apply to all of the shares
of Common Stock now owned or that may be issued or transferred hereafter to a Stockholder in consequence of any additional issuance, purchase, exchange or reclassification of any of the shares of Common Stock, corporate reorganization, or any other
form of recapitalization, consolidation, merger, share split or share dividend, or that are acquired by a Stockholder in any other manner. 
 7.9 GOVERNING LAW; CONSENT TO JURISDICTION; WAIVER OF JURY TRIAL. 
 (a)
THIS AGREEMENT AND ANY CLAIM OR CONTROVERSY RELATED HERETO SHALL BE GOVERNED AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF DELAWARE APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED ENTIRELY

  
 20 

 
WITHIN SUCH STATE, WITHOUT REGARD TO THE PRINCIPLES OF CONFLICTS OF LAW THEREOF. 
 (b) THE PARTIES HERETO IRREVOCABLY SUBMIT TO THE EXCLUSIVE JURISDICTION OF ANY STATE OR FEDERAL COURT SITTING IN THE STATE OF DELAWARE OVER ANY SUIT, ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO
THIS AGREEMENT OR THE AFFAIRS OF THE COMPANY. TO THE FULLEST EXTENT THEY MAY EFFECTIVELY DO SO UNDER APPLICABLE LAW, THE PARTIES HERETO IRREVOCABLY WAIVE AND AGREE NOT TO ASSERT, BY WAY OF MOTION, AS A DEFENSE OR OTHERWISE, ANY CLAIM THAT THEY ARE
NOT SUBJECT TO THE JURISDICTION OF ANY SUCH COURT, ANY OBJECTION THAT THEY MAY NOW OR HEREAFTER HAVE TO THE LAYING OF THE VENUE OF ANY SUCH SUIT, ACTION OR PROCEEDING BROUGHT IN ANY SUCH COURT AND ANY CLAIM THAT ANY SUCH SUIT, ACTION OR PROCEEDING
BROUGHT IN ANY SUCH COURT HAS BEEN BROUGHT IN AN INCONVENIENT FORUM. 
 (c) TO THE EXTENT NOT PROHIBITED BY APPLICABLE LAW
WHICH CANNOT BE WAIVED, EACH PARTY HERETO HEREBY WAIVES AND COVENANTS THAT IT WILL NOT ASSERT (WHETHER AS PLAINTIFF, DEFENDANT OR OTHERWISE) ANY RIGHT TO TRIAL BY JURY IN ANY FORUM IN RESPECT OF ANY ISSUE OR ACTION, CLAIM, CAUSE OF ACTION OR SUIT
(IN CONTRACT, TORT OR OTHERWISE), INQUIRY, PROCEEDING OR INVESTIGATION ARISING OUT OF OR BASED UPON THIS AGREEMENT OR THE SUBJECT MATTER HEREOF OR IN ANY WAY CONNECTED WITH OR RELATED OR INCIDENTAL TO THE TRANSACTIONS CONTEMPLATED HEREBY, IN EACH
CASE WHETHER NOW EXISTING OR HEREAFTER ARISING. EACH PARTY HERETO ACKNOWLEDGES THAT IT HAS BEEN INFORMED BY THE OTHER PARTIES HERETO THAT THIS SECTION 7.9 CONSTITUTES A MATERIAL INDUCEMENT UPON WHICH THEY ARE RELYING AND WILL RELY IN ENTERING INTO
THIS AGREEMENT. ANY PARTY HERETO MAY FILE AN ORIGINAL COUNTERPART OR A COPY OF THIS SECTION 7.9 WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENT OF EACH SUCH PARTY TO THE WAIVER OF ITS RIGHT TO TRIAL BY JURY. 

7.10 Further Assurances. Each of the parties shall, and shall cause their respective Affiliates to, execute such instruments and
take such action as may be reasonably required or desirable to carry out the provisions hereof and the transactions contemplated hereby. 
 7.11 Successors and Assigns. Except as otherwise provided herein, this Agreement shall be binding upon and inure to the benefit of the parties and their respective successors, assigns, heirs,
legatees and legal representatives. This Agreement is not assignable except in connection with a transfer of Common Stock in accordance with the terms of this Agreement. 

  
 21 

 7.12 Counterparts. This Agreement may be executed in one or more counterparts (by
facsimile or otherwise), each of which shall be deemed an original, and all of which taken together shall constitute one and the same instrument. 

  
 22 

 IN WITNESS WHEREOF, the undersigned have executed, or have caused to be executed, this
Agreement on the date first written above. 
  

					
	ALERIS HOLDING COMPANY
		
	By:	 	 /s/ Christopher R. Clegg

		 	Name:	 	Christopher R. Clegg
		 	Title:	 	Executive Vice President, Secretary and General Counsel

 [Signature Page to Stockholders Agreement] 

 
					
	OCM OPPORTUNITIES ALS HOLDINGS, L.P.
		
	By:	 	 Oaktree Fund GP, LLC,
 its General Partner

		
	By:	 	 Oaktree Fund GP I, L.P.,
 its Managing Member

		
	By:	 	 /s/ Kenneth Liang

		 	Name: Kenneth Liang
		 	Title:   Authorized Signatory
		
	By:	 	 /s/ Brian Laibow

		 	Name: Brian Laibow
		 	Title:   Authorized Signatory
	
	OAKTREE EUROPEAN CREDIT
OPPORTUNITIES HOLDINGS, LTD.
		
	By:	 	 Oaktree Europe GP, Limited,
 its Director

		
	By:	 	 Oaktree Capital Management, L.P.,
 its Director

		
	By:	 	 /s/ Richard Ting

		 	Name: Richard Ting
		 	Title:   Authorized Signatory
		
	By:	 	 /s/ Emily Alexander

		 	Name: Emily Alexander
		 	Title:   Authorized Signatory

 [Signature Page to Stockholders Agreement] 

 
			
	OCM HIGH YIELD PLUS ALS HOLDINGS, L.P.
		
	By:	 	 Oaktree Fund GP IIA, LLC,

its General Partner

		
	By:	 	 Oaktree Fund GP II, L.P.,

its Managing Member

		
	By:	 	 /s/ Richard Ting

		 	Name: Richard Ting
		 	Title: Authorized Signatory
		
	By:	 	 /s/ Emily Alexander

		 	Name: Emily Alexander
		 	Title: Authorized Signatory

[Signature Page to Stockholders Agreement] 

 
			
	OAKTREE EUROPEAN CREDIT OPPORTUNITIES II, LTD.
		
	By:	 	 Oaktree Capital Management, Limited,
 its Portfolio Manager

		
	By:	 	 /s/ Brian D. Beck

		 	Name: Brian D. Beck
		 	Title: Authorized Signatory
		
	By:	 	 /s/ James Turner

		 	Name: James Turner
		 	Title: Authorized Signatory

[Signature Page to Stockholders Agreement] 

 
			
	APOLLO ALS HOLDINGS II, L.P.
		
	By:	 	 Apollo ALS Holdings II GP, LLC,
 its general partner

		
	By:	 	 /s/ [illegible]

		 	Name:
		 	Title:

 
			
	 SANKATY ADVISORS, LLC,
 on behalf of certain Funds and Accounts
 advised by it

		
	By:	 	 /s/ [illegible]

		 	Name:
		 	Title:Aleris Holding Company 2010 Equity Incentive Plan Stock Option Agrmt-Demetriou

 Exhibit 10.10 
 ALERIS HOLDING COMPANY 
 2010 EQUITY INCENTIVE PLAN 

STOCK OPTION AGREEMENT 
 THIS STOCK OPTION AGREEMENT (the “Agreement”) is made effective as of the date set forth on Exhibit A hereto (the “Grant Date”) between ALERIS HOLDING COMPANY, a
Delaware corporation (together with its successors and assigns) (the “Company”), and the person named on Exhibit A hereto (the “Optionee”). Capitalized terms used and not otherwise defined herein shall have the
respective meanings ascribed to them in the Plan (as defined below). 
 W I T N E S S E T H: 

In consideration of the mutual promises and covenants made herein and of the Optionee having entered into an employment agreement (the
“Employment Agreement”) with a subsidiary of the Company effective as of the Effective Date, and of the mutual benefits to be derived herefrom, the parties hereto agree as follows: 

1. Grant of Stock Option. Subject to the provisions of this Agreement and to the provisions of the Aleris Holding Company 2010
Equity Incentive Plan, as amended, supplemented or otherwise modified from time to time (the “Plan”), which is hereby incorporated by reference herein, to the extent set forth in Section 17 below, the Company grants to the
Optionee as of the Grant Date the right and option (the “Stock Option”) to purchase shares of common stock of the Company, par value $0.01 per share (“Common Stock”). A portion of the Stock Option is granted at the
exercise price per share of (a) $29.76 (the “FMV Stock Option”), (b) $44.64 (the “Premium Stock Option”) and (c) $59.52 the “Super-Premium Stock Option”), in each case as set forth on
Exhibit A hereto. Unless earlier terminated pursuant to the terms of this Agreement, the Stock Option shall (except to the extent otherwise provided in Section 10 below) expire on the tenth anniversary of the Grant Date (the
“Option Period”). Subject to Section 17 below, this Agreement shall be construed in accordance with the provisions of the Plan. The Stock Option is not intended to be treated as an “incentive stock option,” as such
term is defined in Section 422 of the Code. If requested by the Company, as a condition precedent to the Optionee’s exercise of any portion of the Stock Option pursuant to this Agreement, the Optionee shall execute the Stockholders
Agreement, if any (unless the Optionee has already done so), in which case the Optionee shall have all of the rights and obligations of a Stockholder (as such term is defined in the Stockholders Agreement) described therein in respect of any shares
of Common Stock that are acquired by the Optionee pursuant to exercise of the Stock Option. Any shares of Common Stock received by the Optionee upon any exercise of the Stock Option shall be subject to all terms of the Stockholders Agreement
(without regard to whether or not the Optionee is a party to the Stockholders Agreement). 
 2. Exercisability of the Stock
Option. 
 (a) Time-Based Vesting. Subject to Section 4 of this Agreement, each of the FMV Stock Option, the
Premium Stock Option and the Super-Premium Stock Option shall vest and become exercisable with respect to six and a 

 
quarter percent (6.25%) of the shares of Common Stock covered respectively thereby on each quarterly anniversary of the Effective Date during the four year period following the Effective
Date, so as to be fully vested and exercisable on the fourth anniversary of the Effective Date. 
 (b) Change of
Control. Notwithstanding Section 2(a) and subject to Section 4 of this Agreement, upon a Change of Control, the Stock Option shall vest and become exercisable to the extent necessary to make the aggregate percentage of the Stock Option
that has become vested and exercisable as of the date of such Change of Control at least equal to the percentage by which the Initial Investors have reduced their combined Common Stock interest in the Company (measured by the number of shares of the
Company’s Common Stock acquired on the Effective Date and still held immediately following the Change of Control as compared to the number of shares of the Company’s Common Stock held as of the Effective Date, in each case as adjusted for
stock splits, stock dividends, and the like); provided, however, that (i) the Stock Option shall vest and become exercisable by applying such percentage to each of the FMV Stock Option, the Premium Stock Option and the Super-Premium Stock
Option, and (ii) if the Initial Investors’ combined Common Stock interest in the Company is reduced by 75% or more (as measured above), then the Stock Option shall vest, and be exercisable, in full. By way of example and for illustration
purposes only, if there is a Change of Control following the second anniversary of the Effective Date when 50% of the Stock Option is vested and exercisable and the Initial Investors reduce their combined Common Stock interest in the Company by 70%,
then an additional 20% of each of the FMV Stock Option, the Premium Stock Option and the Super-Premium Stock Option shall vest and become exercisable upon the Change of Control, and, subject to Section 11 of the Plan and Section 7 of this
Agreement, the remaining 30% of the Stock Option shall continue to vest in accordance with Section 2(a) hereof. 
 3.
Method of Exercise of the Stock Option. 
 (a) All or any portion of the Stock Option that has become vested and
exercisable may be exercised by delivery to the Company of a written notice stating the number of whole Shares to be purchased pursuant to this Agreement and, except as provided in Section 3(b) below, accompanied by cash or a personal check or
bank draft in the amount equal to the aggregate exercise price for such Shares. The Stock Option may not be exercised in respect of any fractional Share unless specifically consented to by the Committee in writing. The exercise of less than the
entire vested and exercisable portion of the Stock Option shall not cause the expiration, termination, or cancellation of the remaining Stock Option (whether the remaining Stock Option is vested or unvested, exercisable or not exercisable). All
shares of Common Stock of the Company delivered upon any exercise of the Option shall, when delivered, (i) be duly authorized, validly issued, fully paid and nonassessable, (ii) be registered for sale, and for resale, under U.S., State and
federal securities laws to the extent that other securities of the same class are then so registered or qualified and (iii) be listed, or otherwise qualified, for trading on any securities exchange or securities market on which securities of
the same class are then so listed or qualified. 

  
 2 

 (b) The Optionee shall be able to satisfy all or any portion of (i) the exercise
price, and/or (ii) applicable withholding taxes due in connection with such exercise, by (A) at his election reducing the number of Shares otherwise deliverable pursuant to such exercise of the Stock Option by a number of Shares
(including, where applicable, fractional shares) having a Fair Market Value on the date of exercise equal to the exercise price and/or applicable withholding taxes (provided that, unless otherwise specifically consented to by the Committee, only the
number of whole Shares deliverable pursuant to the requested exercise (after giving affect to such reduction) shall be delivered to the Optionee, with any remaining fractional Share deemed unexercised and, only to the extent permitted by the terms
of this Agreement, to remain outstanding and exercisable) or (B) at the sole discretion of the Committee, utilizing some other form of net physical settlement or method of cashless exercise as determined by the Committee. The Committee may, in
its sole discretion, also permit payment of all or any portion of the exercise price and/or applicable withholding taxes due in connection with such exercise by surrender by the Optionee of a number of Shares that are already owned by the Optionee
having a Fair Market Value equal to such portion of the exercise price and/or applicable withholding taxes. Such Shares shall be surrendered to the Company in good form for transfer and shall be valued at their Fair Market Value on the date that the
Stock Option is exercised. 
 4. Termination of Employment. 

(a) Termination for Cause or without Good Reason. If the Optionee’s employment under the Employment
Agreement is terminated by his employer at any time for Cause, the Stock Option (including any exercisable portion thereof to the extent not yet exercised) shall be cancelled and forfeited in its entirety as of the Date of Termination (as defined in
the Employment Agreement) without consideration therefor and expire on such date; provided that, for avoidance of doubt, the Stock Option (to the extent previously exercised), and any distribution previously made in respect of the Stock Option upon
exercise or cancellation, shall be subject to forfeiture only as expressly provided elsewhere in this Agreement or in the Employment Agreement; and, provided, further, that the foregoing shall not in any way limit any other rights that either party
may have with respect to the other party. If the Optionee’s employment under the Employment Agreement is terminated by the Optionee without Good Reason (as defined in the Employment Agreement), (i) the portion of the Stock Option that is
unvested on the Date of Termination shall be cancelled and forfeited without consideration therefor, and (ii) subject to Section 7 of this Agreement, the portion of the Stock Option that is vested and exercisable on the date of such
termination may be exercised at any time through the earlier of (a) the 90th day following the Date of Termination and (b) the last day of the Option Period, and after which such portion shall (except to the extent otherwise provided in Section 10 below) expire.

 (b) Termination without Cause or for Good Reason. If the Optionee’s employment under the Employment Agreement is
terminated by his employer not for Cause (including, for avoidance of doubt, due to non-extension of the Employment Period by his employer under Section 3 of the Employment Agreement) or by the Optionee with Good Reason, the FMV Stock Option,
the Premium Stock Option 

  
 3 

 
and the Super-Premium Stock Option shall each vest and become exercisable on the Date of Termination with respect to 50% of the Shares covered respectively thereby that have not previously vested
and become exercisable as of such date. Subject to Section 7 of this Agreement, the portion of the Stock Option that is or becomes exercisable on the Date of Termination may be exercised at any time through the earlier of (i) the six
(6) month anniversary of the Date of Termination and (ii) the last day of the Option Period, and after which such portion shall (except to the extent otherwise provided in Section 10 below) expire. Notwithstanding the foregoing, if
the Optionee’s employment under the Employment Agreement is terminated by his employer not for Cause or by the Optionee with Good Reason, in each case, in anticipation of or within twelve (12) months following a Change of Control, the
entire Stock Option shall become vested and exercisable immediately and, subject to Section 7 of this Agreement, may be exercised at any time through the earlier of (a) the six (6) month anniversary of the Date of Termination and
(b) the last day of the Option Period, after which such portion shall (except to the extent otherwise provided in Section 10 below) expire. For purposes of this Section 4(b), a termination of employment will be deemed to be “in
anticipation of” a Change of Control if such termination (or the Good Reason event giving rise to such termination) is done by the Company or any Subsidiary or Affiliate with the principal purpose of avoiding or evading its compensation
obligations that would arise upon a termination following a Change of Control. 
 (c) Termination due to death or
Disability. If the Optionee’s employment is terminated as a result of the Optionee’s death or Disability, (i) the portion of the Stock Option that is unvested at the time of such termination shall be cancelled and forfeited
without consideration therefor, and (ii) the portion of the Stock Option that is vested and exercisable as of the Date of Termination may be exercised at any time through the earlier of (a) the one-year anniversary of the Date of
Termination and (b) the last day of the Option Period, subject to Section 7 of this Agreement, after which such portion shall (except to the extent otherwise provided in Section 10 below) expire. 

(d) Nothing in this Agreement or the Plan shall confer upon the Optionee any right to continue in the employ or service of the Company
or any of its Subsidiaries or Affiliates or interfere in any way with the right of the Company or any of its Subsidiaries or Affiliates to terminate the Optionee’s employment or service at any time and for any reason. 

5. Nontransferability of the Stock Option. The Stock Option may not be sold, pledged, assigned, hypothecated, transferred or
disposed of in any manner by the Optionee (other than, in the event of the Optionee’s death, or by will or the applicable laws of descent and distribution) and any purported assignment, alienation, pledge, attachment, sale, transfer or
encumbrance in violation of this Section 5 shall be void and unenforceable against the Company or any Subsidiary or Affiliate. The Stock Option may be exercised during the lifetime of the Optionee, only by such Optionee, and if exercisable
after the death of the Optionee, may be exercised by his legatees, personal representatives or distributees. Any permitted transfer of the Stock Option by will or the laws of descent and distribution shall not be effective to bind the Company unless
the Committee shall have been furnished with written notice thereof and a copy of such 

  
 4 

 
evidence as the Committee may reasonably deem necessary to establish the validity of the transfer, the acceptance by the transferee or transferees of the terms and conditions of the Plan and this
Agreement and the agreement to be bound by the acknowledgments made by the Optionee in connection with the grant of this Stock Option. 
 6. Rights as a Stockholder. Neither the Optionee nor any transferee of the Stock Option shall have any rights as a stockholder, including, without limitation, the right to receive dividends, with
respect to any Shares covered by such Stock Option until the date when his or her purchase is entered upon the records of the Company or the duly authorized transfer agent of the Company. 

7. Adjustment in the Event of Change in Stock; Change of Control. 

(a) In the event of any merger, consolidation, reorganization, recapitalization, spin-off, split-up, combination, modification of
securities, exchange of securities, liquidation, dissolution, share split, reverse share split, share dividend, other distribution of securities or other property in respect of shares or other securities (other than ordinary recurring cash
dividends), or other change in corporate structure or capitalization affecting the rights or value of the securities and property then subject to the Stock Option, the Committee shall promptly make equitable and appropriate adjustment(s) in the
number and/or kind of the securities and/or property that are subject to the Stock Option, and/or the exercise price, and/or other terms or conditions of the Stock Option, so as to avoid dilution or enlargement of the benefits or potential benefits
represented by the Stock Option. Any determination made by the Committee regarding any adjustment will, to the extent reasonable and made in good faith, be final and conclusive. 

(b) Effective upon a Change of Control, unless otherwise specifically prohibited under applicable laws or by the rules and regulations
of any governmental agency or self-regulatory body and without in any way limiting the extent of Section 7(a), the Committee is authorized (but not obligated) to make any or all of the following adjustments (or any combination thereof) to the
Stock Option: 
 (i) the continuation or assumption of the Stock Option by the Company (if it is the surviving corporation) or
by the surviving corporation or any direct or indirect parent of either, in a manner consistent with Section 7(a) above; 

(ii) the substitution by the surviving corporation, or any direct or indirect parent thereof, of the Stock Option with a stock option
having substantially the same terms as the Stock Option being replaced, in a manner consistent with Section 7(a) above; or 
 (iii) the acceleration of the vesting and exercisability of the Stock Option, so that it is fully vested and exercisable immediately prior to or as of the date of the Change of Control, and the expiration
of the Stock Option to the extent not exercised (subject to Section 10 below) as of the date of the Change of Control or other later date thereafter designated by the Committee; or 

  
 5 

 (iv) the cancellation of all or any portion of each of the FMV Stock Option, the Premium
Stock Option, and the Super-Premium Stock Option in exchange for a cash payment, and/or such other property (if any) as is paid as consideration to holders of Shares in the Change of Control, having an aggregate Fair Market Value equal (in each
case) to the excess, if any, of the Fair Market Value of the securities and other property subject to such Stock Option or portion thereof being canceled over the aggregate exercise price for such Stock Option or portion thereof being canceled (and,
for the avoidance of doubt, if there is no such excess, such Option may be cancelled without any payment or consideration therefor). 
 (c) Except as expressly provided in the Plan or this Agreement, the Optionee shall not have any rights by reason of any subdivision or consolidation of shares of stock of any class, the payment of any
dividend, any increase or decrease in the number of shares of stock of any class or any dissolution, liquidation, merger or consolidation of the Company or any other corporation. Except as expressly provided in the Plan or this Agreement, no
issuance by the Company of shares of stock of any class, or securities convertible into shares of stock of any class, shall affect, and no adjustment by reason thereof shall be made with respect to, the number of shares or amount of other property
subject to this Agreement. 
 (d) Notwithstanding anything to the contrary in this Agreement or elsewhere, no adjustment shall
be made to the Stock Option that would cause it, or any portion of it, to be treated as “deferred compensation” for purposes of Section 409A of the Code. 
 8. General Assets. Nothing contained in the Plan or this Agreement, and no action taken pursuant to their provisions, shall be construed to create a trust of any kind, nor any fiduciary
relationship between the Company or any Subsidiary or Affiliate, on the one hand, and the Participant, the Participant’s beneficiary or legal representative or any other person, on the other. To the extent that any person acquires a right to
receive payments or other property from the Company under the Plan or this Agreement, such right shall be no greater than the rights of an unsecured general creditor of the Company. All payments to be made hereunder shall be paid from the general
funds of the Company, and all amounts and property credited to the Account under this Agreement shall continue for all purposes to be part of the general assets of the Company. 

9. Responsibility for Taxes. Except to the extent otherwise provided in certain circumstances that apply with respect to the
exercise of the Stock Option in Section 3(b) above, the Optionee shall be solely responsible for all taxes imposed on the Optionee (including, without limitation, applicable federal, state, provincial, territorial, local or foreign income,
social security, estate or excise taxes) that may be payable as a result of the Optionee’s participation in the Plan or as a result of the grant, vesting, or exercise of the Stock Option and/or the sale, disposition or transfer of any shares of
Common Stock acquired upon the Optionee’s exercise of the Stock Option, excluding, however, for avoidance of doubt, the employer’s portion of any such taxes. Subject to any election the Optionee may have made under Section 3(b) above,
as a condition of the exercise of the Stock Option, prior to the delivery of a certificate or certificates 

  
 6 

 
representing any share of Common Stock and immediately following the exercise of any Stock Option, the Optionee must pay to the Company, any amount that the Company determines it is required to
withhold from payments to the employee (other than, for avoidance of doubt, the employer’s portion of any such taxes) under any applicable and federal, state, provincial, territorial, local or foreign tax laws upon the exercise of such Stock
Option and the transfer of such Shares subject to such Stock Option. Subject to any election the Optionee may have made under Section 3(b) above, the Parties hereby acknowledge that the Company and its Subsidiaries and Affiliates shall have the
right and are authorized to offset from any compensation or other amounts owing to the Optionee the amount of any required tax withholding and payroll taxes in respect of a Stock Option, its exercise or any payment or transfer under this Agreement
(other than, for avoidance of doubt, the employer’s portion of any such taxes) and to take such other action as may be necessary to satisfy all obligations for the payment of such taxes. 

10. Government and Other Regulations. 
 (a) Shares shall not be issued pursuant to the Stock Option unless the issuance and delivery of such Shares comply with (or are exempt from) all applicable requirements of law, including (without
limitation) the Exchange Act, the Securities Act, the rules and regulations promulgated thereunder, state securities laws and regulations and the regulations of any stock exchange or other securities market on which the Company’s securities may
then be traded. No delay in issuance shall result in the expiration of the exercisability of all, or any portion of, the Stock Option. Except otherwise provided in this Agreement, the Company shall not be obligated to file any registration statement
under any applicable securities laws to permit the purchase or issuance of any Shares, and, accordingly, any certificates for Shares may have an appropriate legend or statement of applicable restrictions endorsed thereon. If the Company reasonably
deems it necessary to ensure that the issuance of Shares pursuant to this Stock Option is not required to be registered under any applicable securities laws, the Optionee shall deliver to the Company an agreement or certificate containing such
representations, warranties and covenants as the Company reasonably determines necessary or appropriate to satisfy such requirements. 
 (b) The exercise of the Stock Option shall only be effective at such time as counsel to the Company shall have determined that the issuance and delivery of Shares pursuant to such exercise is in
compliance with all applicable laws, regulations of governmental authority and the requirements of any securities exchange on which such Shares are traded. The Company may, in its reasonable discretion, defer the effectiveness of the exercise of the
Stock Option or the issuance or transfer of Shares pending or to ensure compliance under federal or state securities laws or the rules or regulations of any exchange on which such Shares are then listed for trading. The Company shall inform the
Optionee in writing of its decision to defer the effectiveness of the exercise of the Stock Option or the issuance or transfer of Shares. During the period that the effectiveness of the exercise of the Stock Option has been deferred, the Optionee
may, by written notice, withdraw such exercise and obtain the refund of any amount paid with respect thereto. No delay in exercise pursuant to this Section 10(b) shall result in the 

  
 7 

 
expiration of all, or any portion of, the Stock Option until at least 10 business days after exercise has been permitted. 

(c) As a condition to any exercise of the Stock Option, upon reasonable request by the Company, the Optionee will be required to
represent, warrant and covenant as follows: 
 (i) The Optionee is acquiring the Shares for his own account and not with a view
to, or for sale in connection with, any distribution of the shares of Common Stock in violation of the Securities Act or any rule or regulation under the Securities Act or in violation of any applicable state securities law. 

(ii) The Optionee has had such opportunity as he has deemed adequate to obtain from representatives of the Company such information as
is necessary to permit him to evaluate the merits and risks of his investment in the Company. 
 (iii) The Optionee has
sufficient experience in business, financial and investment matters to be able to evaluate the risks involved in acquiring the Shares and to make an informed investment decision with respect to such investment. 

(iv) The Optionee can afford the complete loss of the value of the Shares and is able to bear the economic risk of holding such Shares
for an indefinite period. 
 (v) The Optionee understands that (I) the Shares have not been registered under the
Securities Act and constitute “restricted securities” within the meaning of Rule 144 under the Securities Act; (II) the Shares cannot be sold, transferred or otherwise disposed of unless they are subsequently registered under the
Securities Act or an exemption from registration is then available; and (III) there is now no registration statement on file with the Securities and Exchange Commission with respect to the Shares and there is no commitment on the part of the Company
to make any such filing. 
 (vi) In addition, upon any exercise of the Stock Option, and as a condition thereof, the Optionee
will make or enter into such other written representations, warranties and agreements as the Company may reasonably request in order to comply with applicable securities laws or with this Agreement. 

11. Tax Reporting. Upon the exercise of all or any portion of the Stock Option in accordance with Section 3 above, the
Optionee shall recognize taxable income and the Company shall report such taxable income to the appropriate taxing authorities as it determines to be necessary and appropriate. 

12. Clawback/Forfeiture. Notwithstanding anything to the contrary contained herein and without limiting any other rights and
remedies of the Company, if the Optionee (i) materially violates the restrictive covenants in the Employment Agreement relating to non-competition, non-solicitation or non-disclosure or (ii) engages

  
 8 

 
in fraud or other willful misconduct that contributes materially to any significant financial restatement or material loss, the Committee may, at any time up to six months after learning of such
conduct, cancel the Stock Option, including any vested portions thereof, or require the Optionee to forfeit or to repay to the Company the after-tax gain realized on any previously exercised portion of the Stock Option; provided, however, that
(a) except in cases of willful misconduct, the Optionee shall be provided a fifteen (15) day cure period to cease and to cure the conduct described in clause (i) of this Section 12. To the extent once vested, the Stock Option
(and any proceeds received in respect of the Stock Option) shall be wholly non-forfeitable except as expressly set forth in this Agreement or the Employment Agreement; provided that the foregoing shall not in any way limit any other rights that
either party may have with respect to the other party. 
 13. Fair Market Value. For purposes of this Agreement,
“Fair Market Value”, as of any date, shall mean fair market value as of such date determined without discount for lack of liquidity, lack of control, minority status, contractual restrictions or the like, provided that, when used in
respect of Shares, for so long as (i) the Shares are not listed on a national securities exchange, (ii) the Shares are not quoted in an inter-dealer quotation system on a last sale basis and (iii) Oaktree Capital Management, L.P. or
any of its affiliates (collectively, “Oaktree”) are holding Shares, then, other than in the context of a Change of Control, the Fair Market Value of such Shares shall be as determined using the same methodology that was used for the
then-most-recent determination of the value of Shares reported by Oaktree to its investors; and provided further that for securities that are listed on a national securities exchange, “Fair Market Value”, as of any date, shall mean the
closing sale price reported as having occurred on the primary exchange on which the security is listed and traded on such date, or, if there is no such sale on that date, then on the last preceding date on which a sale was reported; and, for
securities that are not listed on any national securities exchange but are quoted in an inter-dealer quotation system on a last sale basis, “Fair Market Value”, as of any date, shall mean the average between the closing bid price and ask
price reported on such date, or, if there is no such sale on that date, then on the last preceding date on which a sale was reported. For the avoidance of doubt, the foregoing valuation approach shall not be interpreted to provide the Optionee with
a compensatory benefit but rather is intended by the parties to promote consistency in making determinations of the fair market value of Shares. 
 14. Notices. All notices and other communications under this Agreement shall be in writing and shall be given by hand delivery to the other party or by facsimile, overnight courier or registered or
certified mail, return receipt requested, postage prepaid, addressed as follows: 
  

			
	If to the Optionee:	 	To the address specified in Exhibit A hereto or to any updated address filed by the Executive with the
Company.

  
 9 

			
	With a copy to:	 	
		 	 Morrison Cohen LLP
 909 Third
Avenue, 27th Floor

New York, NY 10022
 Attn: Robert M.
Sedgwick, Esq.

		
	If to the Company:	 	 Aleris Holding Company
 25825
Science Park Drive, Suite 400
 Beachwood, Ohio 44122
 Attention: Christopher R. Clegg

 or to such other address or facsimile number as
either party shall have furnished to the other in writing in accordance with this Section 14. Notice and communications shall be effective when actually received by the addressee. 

15. Stockholders Agreement. Neither the adoption of the Plan nor the grant of the Stock Option pursuant to this Agreement shall
restrict in any way the adoption of any amendment, supplement or other modification of the Stockholders Agreement, if any, in accordance with the terms of such agreement. 
 16. Governing Law. This Agreement shall be governed by, and construed in accordance with, its express terms, and otherwise in accordance with the laws of the state of Delaware, as such laws are
applied to contracts entered into and performed in such state and without regard to the principles of conflicts of laws thereof or principles of conflicts of laws of any other jurisdiction which could cause the application of the laws of any
jurisdiction other than such state. 
 17. Stock Option Subject to the Plan. By entering into this Agreement, the
Optionee agrees and acknowledges that (i) the Optionee has received and read a copy of the Plan as in effect on the date hereof, and (ii) the Stock Option is subject to the Plan, and (iii) Shares acquired upon the exercise of the
Stock Option are subject to the terms of the Stockholders Agreement. In the event of a conflict between any term or provision contained in this Agreement and any term or provision of the Plan and the Stockholders Agreement, the terms and provisions
of the Stockholders Agreement and then in descending order this Agreement and the Plan shall prevail. No amendment to the Plan that is inconsistent with the express terms of this Agreement and that adversely affects any of the Optionee’s rights
under this Agreement shall be effective as to this Agreement without the Optionee’s prior written consent; provided, however, the Committee may amend the Plan and this Agreement to the extent necessary to comply with applicable law. 

18. Certain Specific Acknowledgments; Dispute Resolution. The Company represents and acknowledges that it has secured the approval
of any person or body whose approval is necessary as of the Grant Date for it to enter into this Agreement and perform its obligations under it, and that upon execution and delivery of the Agreement by the parties, this Agreement shall be a valid
and binding obligation of the Company, enforceable in accordance with its terms, except to the extent that 

  
 10 

 
enforceability may be limited by applicable bankruptcy, insolvency or similar laws affecting the enforcement of creditor’s rights generally. Any dispute arising under or relating to this
Agreement shall be resolved in accordance with Section 11(i) of the Employment Agreement. 
 19. Effect of
Agreement. Except as otherwise provided hereunder, this Agreement shall be binding upon and shall inure to the benefit of any successor or successors of the Company and to any transferee or successor of the Optionee pursuant to Section 5 of
this Agreement. 
 20. Titles and Headings. The titles and headings of the sections in this Agreement are for convenience
of reference only, and, in the event of any conflict, the text of this Agreement, rather than such titles or headings, shall control. 
 21. Amendment. This Agreement may not be modified, amended or waived to the extent it would impair the rights of the Optionee, except by an instrument in writing that specifically identifies the
provision of this Agreement being modified, amended or waived and that is signed by both parties hereto. The waiver by either party of compliance with any provision of this Agreement shall not operate or be construed as a waiver of any other
provision of this Agreement or of any subsequent breach of any provision of this Agreement. 
 22. Code
Section 409A. To the extent applicable, notwithstanding anything herein to the contrary, this Agreement and the Stock Option issued hereunder are intended not to be governed by or to be in compliance with Section 409A of the Code. To
the extent applicable, this Agreement and the Stock Option shall be interpreted in accordance with Section 409A of the Code and Department of Treasury regulations and other interpretative guidance issued thereunder, including, without
limitation, any such regulations or other guidance that may be issued after the Grant Date. 
 23. Relationship to Other
Benefits. No payment under this Agreement shall be taken into account in determining any benefits under any pension, retirement, profit sharing, group insurance or other benefit plan of the Company or any Subsidiary or Affiliate except as
otherwise specifically provided in such other plan. 
 24. No Retention Rights; No Right to Incentive Award. Nothing in
the Plan or this Agreement shall confer upon the Optionee any right to continue in Service for any period of specific duration or interfere with or otherwise restrict in any way the rights of the Company (or any Subsidiary or Affiliate employing or
retaining the Optionee) or of the Optionee, which rights are hereby expressly reserved by each, to terminate his Service at any time and for any reason, with or without Cause. The Committee’s granting of the Stock Option or other Award to the
Optionee shall neither require the Committee to grant the Stock Option or other Award to the Optionee or any other Participant in the Plan or other person at any time nor preclude the Committee from making subsequent grants to the Optionee or any
other Participant in the Plan or other person. 

  
 11 

 25. Counterparts. This Agreement may be signed in counterparts, each of which shall
be an original, with the same effect as if the signatures thereto and hereto were upon the same instrument. Signatures delivered by facsimile (including by “pdf”) shall be effective for all purposes. 

[Remainder of Page Intentionally Left Blank] 

  
 12 

 IN WITNESS WHEREOF, as of the date first above written, the Company has caused this
Agreement to be executed on its behalf by a duly authorized officer and the Optionee has hereunto set the Optionee’s hand. 
  

			
	 ALERIS HOLDING COMPANY

		
	By:	 	 /s/ Christopher R. Clegg

	Title:	 	 Executive Vice President,

General Counsel & Secretary

	 Date: June 1, 2010

	
	 /s/ Steven J. Demetriou

	 Optionee: Steven J. Demetriou

	 Date: June 1, 2010

  
 13 

 Exhibit A to 

Stock Option Agreement 
 of Aleris Holding Company 
  

			
	Date of Option Grant:	  	June 1, 2010
		
	Name and Address of Optionee:	  	
	Steven J. Demetriou	  	

  

									
	 	  	Number of Shares	 	  	Exercise Price	 
			
	FMV Stock Option	  	 	325,423	  	  	$	29.76	  
			
	Premium Stock Option	  	 	81,356	  	  	$	44.64	  
			
	Super-Premium Stock Option	  	 	81,356	  	  	$	59.52	  
			
	 TOTAL
	  	 	488,135	  	  			

  
 14

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