Document:

Exhibit

Exhibit 10.2.2 (English Translation)

                    

MORTGAGE AGREEMENT 
(English Translation)
No. : 150339028D16121701-1  

ALERIS ALUMINUM (ZHENJIANG) CO., LTD.
(爱励铝业 (镇江­) 有限Þ公司)
as Mortgagor

and

Bank of China Limited, Zhenjiang jingkou Sub-Branch
(中国银行股份有限公司镇江­京口支行)
as Security Agent

DATE:  December 21st, 2016

__________________________________________________________________________________________

        

TABLE OF CONTENTS

	
	
	Article I. Definitions and Interpretation.................................................................................................1

	Article II. Mortgage................................................................................................................................3

	Article III................................................................................................................................................4

	Term and Scope of Security....................................................................................................................4

	Article IV. Possession of Mortgaged Assets...........................................................................................4

	Article V. Discharge................................................................................................................................4

	Article VI. Undertakings.........................................................................................................................4

	Article VII. Enforcement........................................................................................................................5

	Article VIII. Particulars of Mortgaged Assets........................................................................................6

	Article IX. Assignment...........................................................................................................................6

	Article X. Miscellaneous........................................................................................................................6

	SCHEDULE 1 PARTICULARS OF MORTGAGE..........................................................................9

THIS MORTGAGE AGREEMENT (this “Deed”) is dated December 21st, 2016,  

BETWEEN:
		
	(1)
	Aleris Aluminum (Zhenjiang) Co., Ltd.  (爱励铝业 ( 镇江) 有限­公司), a wholly foreign-owned enterprise established under the laws of the People’s Republic of China, as the mortgagor (the “Mortgagor”); and

		
	(2)
	Bank of China Limited, Zhenjiang Jingkou Sub-Branch (中国银行股份有限­公司镇江京口支行), as the security agent (the “Security Agent”).

WHEREAS:
		
	(a)
	Pursuant to a syndicated facility agreement for the Project of Large Scale and High Strength Aluminum Alloy Plates dated August 8, 2012 (as amended from time to time, the “Syndicated Facility Agreement”), made between, among others, the Mortgagor, the Security Agent and the Lenders (as defined in the Syndicated Facility Agreement), the Lenders agreed to make certain facilities (the “Facilities”) available to the Mortgagor subject to the terms and conditions therein.

		
	(b)
	As a condition to the Lenders making the Facilities available to the Mortgagor, the Mortgagor and the Security Agent have entered into this Deed in favour of all the Finance Parties.

IT IS AGREED as follows:
ARTICLE I.
Definitions and Interpretation
1.1    Definitions.  In this Deed: 
“Mortgaged Assets” means all machinery, equipment and raw materials purchased by the Mortgagor for the Project from time to time, as well as all of the semi-finished products and finished products manufactured under the Project. 
“MSAB” means competent local authority [responsible for mortgage registration].
“Secured Obligations” means all indebtedness of the Mortgagor owing and/or payable to the Lenders under and in accordance with the Finance Documents, including, but not limited to, principal and accrued interest (including interest, compound interest and penalty interest), penalties, indemnification amounts to be paid to the Lenders, and fees properly and actually incurred by the Lenders in connection with the enforcement of their rights under the Finance Documents.
“Security Interest” means a mortgage, pledge, lien or other security interest securing any liability of any person or any other agreement or arrangement having a similar effect.
“Security Period” means the period commencing on the date hereof and terminating upon the discharge of the security created by this Deed.
“Title Documents” means all agreements, invoices, certificates, receipts and other documents which constitute evidence of title over the Mortgaged Assets owned by the Mortgagor. 
1.2    Construction

1

		
	(a)
	Capitalized terms used and not defined in this Deed shall have the meaning ascribed to them in the Syndicated Facility Agreement.

		
	(b)
	In this Deed (including the recitals), words and expressions defined, and rules of construction and interpretation set out, in the Syndicated Facility Agreement shall, unless the context otherwise requires, have the same meanings herein save and except that references therein to “this Agreement” shall be construed as references to this Deed. 

		
	(c)
	References to clauses and schedules are to be construed, unless otherwise stated, as references to clauses and schedules of this Deed; and references to this Deed include its schedules.

		
	(d)
	Any reference to “disposal” means any sale, assignment, exchange, transfer, concession, loan, lease, surrender, licence, direct or indirect reservation, waiver, compromise, release, dealing with or in or granting of any option, right of first refusal or any other right or interest whatsoever or any agreement for any of the same and “dispose” shall be construed accordingly.

		
	(e)
	Section, clause and schedule headings are inserted for ease of reference only.

		
	(f)
	A “Section”, “paragraph”, “item” or a “Schedule” is a reference to a section, paragraph, item of or a schedule to this Deed.

		
	(g)
	It is intended that this Deed shall take effect as a deed notwithstanding that a party may only execute this Deed under hand.

		
	(h)
	In this Deed the expressions “Mortgagor” and “Security Agent” shall be construed so as to include, where the context permits, its respective successors, transferees and assignees, whether immediate or derivative.

2

		
	(i)
	A “law” or a “regulation” shall be construed as a reference to such law or regulation as the same may from time to time be amended or re-enacted, including any legislative interpretations and judicial interpretations thereof (and the same which may from time to time be amended or re-enacted).

		
	(j)
	A “document” shall be construed in a broad sense so as to include any agreement, contract, document, certificate, credential, evidence, license and any other written document and to include the same that may from time to time be amended, varied, or supplemented subsequently.

		
	(k)
	A “government agency” shall include any other agency or agencies which replace such government agency in respect of the authorities referred to in this Deed that is initially vested in such government agency.

ARTICLE II.
Mortgage 
2.1    Mortgage
To secure the performance of the Secured Obligations, the Mortgagor mortgages the Mortgaged Assets by way of first priority mortgage to the Security Agent (who shall act for and on behalf of all the Finance Parties). 
2.2    Registration of Mortgage
The Mortgagor shall, as soon as practicable after the conditions of mortgage registration of the Mortgaged Assets have been satisfied, use its best efforts to complete the registration of the security contemplated under this Deed with MSAB (the “Mortgage Registration”).  Upon completion of the Mortgage Registration, the Mortgagor shall present to the Security Agent a copy of the registration certificate issued by MSAB evidencing the completion of the Mortgage Registration (i.e., the Enterprise Assets Mortgage Registration Certificate affixed with MSAB’s special chop for asset mortgage registration and with the date of the chopping or other documents evidencing the completion of the Mortgage Registration).  The parties agree that if MSAB refuses to register the security contemplated under this Deed for any reason that is not caused by or due to a fault by the Borrower, the failure to complete the Mortgage Registration shall not be deemed an Event of Default. 
In the event there are material changes in relation to the Mortgaged Assets which requires the mortgage registration to be updated in accordance with relevant PRC laws, the Mortgagor shall use its best efforts to carry out such registration with relevant governmental authorities together with the Security Agent.

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2.3    Mortgagor’s Actions
The Mortgagor shall, at the reasonable request of the Security Agent, promptly sign, seal, execute, deliver and do all deeds, instruments, notices, documents, acts and things as in each such case may be reasonably necessary to perfect the Security Interest created by this Deed.
ARTICLE III.
Term and Scope of Security

The Mortgage is a continuing security and shall be effective from the signing of this Deed by the legal representatives or other authorized representatives of the parties hereto to the date on which the Secured Obligations have been paid.  

ARTICLE IV.
Possession of Mortgaged Assets
Unless otherwise provided herein and permitted by law, the Mortgaged Assets hereunder shall remain under the possession of and use by the Mortgagor.  

ARTICLE V.
Discharge 
5.1    Immediately upon the payment of the Secured Obligations, the Security Agent shall:
		
	(a)
	deliver a written notice to release and discharge this Deed and the security created by this Deed to the Mortgagor;

		
	(b)
	de-register the mortgage created hereunder with MSAB;

		
	(c)
	take all other steps that may be reasonably necessary to retransfer to the Mortgagor the Mortgaged Assets or the remainder thereof (if applicable); and

		
	(d)
	take such actions as may be requested in writing by the Mortgagor to release and discharge the Mortgagor from this Deed.

    

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ARTICLE VI.
Undertakings
		
	6.1
	The undertakings in this Article VI remain in force from the date of this Deed until the end of the Security Period.

6.2    The Mortgagor undertakes with the Security Agent that the Mortgagor shall:
		
	(a) 
	not create or attempt or agree to create or permit to arise or exist any Security Interest over all or any part of the Mortgaged Assets or any interest therein or otherwise assign, deal with or dispose of all or any part of the Mortgaged Assets, except as otherwise permitted by the Finance Documents;

		
	(b)
	observe and perform all material restrictions affecting the Mortgaged Assets, and will not, without the prior written consent of the Security Agent, enter into any onerous or restrictive obligation with regard thereto which is reasonably expected to have a Material Adverse Effect; 

		
	(c)
	take all necessary steps to keep the Title Documents in full force and effect; 

		
	(d)
	not use the Mortgaged Assets or any part thereof for any purpose other than its normal production and operations; 

		
	(e)
	purchase insurance and pay all required insurance premiums for the Mortgaged Assets, and maintain the validity of such insurance through the Security Period;  

		
	(f)
	refrain from taking any actions that it knows will materially diminish the value of the Mortgaged Assets; and 

		
	(g)
	immediately take action to prevent further losses and promptly notify the Security Agent in writing, in the event of loss or reduction in the value of the Mortgaged Assets due to natural disasters, accidents, infringements or any other reasons.

ARTICLE VII.
Enforcement
		
	7.1
	This Deed shall become enforceable upon the Security Agent’s delivery of a written enforcement notice to the Borrower upon the occurrence and during the continuance of an Event of Default.

		
	7.2
	At any time after this Deed has become enforceable, and to the extent permitted by applicable laws, the Security Agent may:

5

		
	(a)
	consult with the Mortgagor to dispose of the Mortgaged Assets or any part thereof by way of sale or auction, and collect all proceeds resulting from the enforcement of this Deed for distribution in accordance with Section 10.3 below, or convert the Mortgaged Assets or any part thereof into a certain amount to set off part or all of the Secured Obligations;

		
	(b)
	take any action in court for a judgment or order to sell the Mortgaged Assets or any part thereof or put the same on auction; 

		
	(c)
	settle, compromise, initiate litigation or arbitration or other proceedings in relation to any dispute, demand or claim in connection with the Mortgaged Assets; and

		
	(d)
	exercise, for the purpose of enforcement of the Mortgage hereunder, any other rights conferred on the Mortgagor in relation to the Mortgaged Assets.

		
	7.3
	Upon the Security Agent’s delivery of an enforcement notice in writing to the Mortgagor, the Mortgagor shall take all due and proper actions that the Security Agent may reasonably require it to take in connection with the Security Agent’s enforcement of the Mortgage.

ARTICLE VIII.
Particulars of Mortgaged Assets 
		
	8.1
	The value of the Mortgaged Assets set out in Schedule 1 hereof is for mortgage registration reference purposes only and does not reflect the actual value or the market value of the Mortgaged Assets, nor shall it be referenced for the purpose of the sale, auction or conversion of the Mortgaged Property.

		
	8.2
	The amount of the Secured Obligations and the loan term set forth in Schedule 1 hereto is for registration purposes only and shall not be used to confer rights and obligations on the parties to this Deed.  The rights and obligations of the parties hereto shall be governed by the terms of the main body of this Deed.

ARTICLE IX.
Assignment
		
	9.1
	The Mortgagor shall not assign any of its rights or obligations hereunder without obtaining the Security Agent’s prior written consent.

		
	9.2
	The Security Agent may assign or transfer all or any of its rights and interests under this Deed to a successor Security Agent appointed in accordance with the Syndicated Facility Agreement.

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	9.3
	With respect to any insurance taken by the Mortgagor over the Mortgaged Assets, the Security Agent shall be named as a first loss payee and the original of such insurance policy shall be under the custody of the Security Agent. 

ARTICLE X.
Miscellaneous
10.1    Costs and Expenses
The Borrower agrees to pay all customary filing and/or registration costs properly incurred by the Parties in connection with the registration of this Deed.
10.2    Notice
Any communication to be made under this Deed shall be made in accordance with the Syndicated Facility Agreement.
10.3    Application of Proceeds
Notwithstanding any other provision in this Deed and to the fullest extent not prohibited by any applicable law, all moneys received or recovered by the Security Agent from time to time during the period that this Deed is enforceable from the exercise of its rights hereunder or the enforcement of this Deed shall be applied in accordance with the provisions of the Syndicated Facility Agreement; provided that the Security Agent may first deduct all lawful costs and expenses it has properly incurred in connection with its disposal of the Mortgaged Property prior to transferring such amount to any other Finance Party
10.4    Amendments, Modifications and Waivers
No amendment, modifications and waiver of any provision of this Deed, nor any consent to any departure by the Mortgagor therefrom, shall in any event be effective unless the same shall be in writing and signed by the party to be charged, and such amendment, modification, waiver or consent shall be effective only in the specific instance and for the purpose for which given. No notice to or demand on the Mortgagor or the Security Agent in any case shall entitle the Mortgagor or the Security Agent to any other or further notice or demand in the same, similar or other circumstances. 
10.5    Invalid Provisions - Severability
If any provision of this Deed is held to be illegal, invalid or unenforceable, such provision shall be fully severable; this Deed shall be construed and enforced as if such illegal, invalid or unenforceable provision had never comprised a part hereof; the remaining provisions hereof shall remain in full force and effect and shall not be affected by the illegal, invalid or unenforceable provision or by its severance herefrom.

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10.6    Successors and Assigns
This Deed shall be binding upon and inure to the benefit of the Security Agent, the Mortgagor and their respective successors and permitted assigns.
10.7    Effectiveness
Subject to the applicable laws and regulations, this Deed shall be dated and come into effect on the date hereof, and to the fullest extent permitted by PRC law, the mortgage created hereunder shall become effective upon the effectiveness of this Deed.
10.8    Governing Law
This Deed and the rights and obligations of the parties hereunder shall be interpreted, construed, applied and enforced in accordance with the laws of the PRC.
10.9    Jurisdiction
The Parties hereto shall discuss with one another to settle any dispute arising under this Deed in the principle of good faith.  If no settlement is so reached to the satisfaction of the Parties, any Party may submit the dispute to the jurisdiction of the court at the place of incorporation of the Security Agent.
10.10    Controlling Provisions
To the extent that the provisions of this Deed are inconsistent with any provision of the Syndicated Facility Agreement, unless this Deed provides otherwise, the provisions of the Syndicated Facility Agreement shall take precedence.
10.11    Entire Agreement
This Deed embodies the entire agreement with respect to the subject matter covered by this document and understanding among the parties hereto and supersedes all prior agreements and understandings between such parties relating to the subject matter hereof and thereof.
10.12    Language 
This Deed is executed by the parties hereto in both the English and the Chinese languages.  In the event that there is any inconsistency between the English and the Chinese versions of this Deed, the Chinese version shall prevail.
10.13    Counterparts 
This Deed may be executed in multiple counterparts, each of which shall constitute an original, but all of which shall constitute one document.

8

SCHEDULE 1

PARTICULARS OF MORTGAGE
	
		
	Mortgagor:
	Aleris Aluminum (Zhenjiang) Co., Ltd.  (爱励铝 业(镇江)有限­公司)

	Security Agent:
	Bank of China Limited, Zhenjiang Jingkou Sub-branch (中国银行股份有限­公司镇江京口支行)

	Particulars of Mortgaged Assets:
	See Exhibit A attached hereto

	Value of the Mortgaged Assets:
	RMB 195,876,209

	Amount of Secured Obligations:
	RMB 1,140,220,000

	Loan Term:
	from August 8, 2012 to May 16, 2024

9

Exhibit A to Schedule 1
Particulars of Mortgaged Assets

10

IN WITNESS WHEREOF, each of the parties hereto has caused this Deed to be executed on the date first above written

MORTGAGOR

For and on behalf of                         )
ALERIS ALUMINUM                     )    
(ZHENJIANG) CO., LTD.                    )
(爱励铝业 (镇江) 有限­公司)                    )

(Chop affixed)

Signed By:    /s/ Gerd F. Jegodzinski
Name:         Gerd F. Jegodzinski
Title:        Authorized Representative 

11

IN WITNESS WHEREOF, each of the parties hereto has caused this Deed to be executed on the date first above written.

Security Agent

For and on behalf of                        )
Bank of China Limited, Zhenjiang             )
Jingkou Sub-Branch                     )
(中国银行股份有限­公司镇江京口支行)            )
(Chop affixed)

By:     /s/ Zhou Zhentao    

Title:    General Manager of Bank of China Limited, Zhenjiang Jingkou Sub-Branch         

12Exhibit

Exhibit 10.2.3 (English Translation)

    
Deposit Pledge Agreement
(English Translation)
(Applicable when the pledgor is the debtor)
No. 150339028D16121701-2
The Pledgor:                Aleris Aluminum (Zhenjiang) Co., Ltd.                   
Unified social credit code:                     91320000567804157J                 
Legal representative/ Principle:             Eric Michael Rychel                      
Address:  No. 111, Caijia Road, Jingkou Industrial Zone, Zhenjiang City, Jiangsu Province.  

The Pledgee:              Bank of China Limited, Zhenjiang Jingkou Sub-branch               
Legal representative/ Principle:                 Zhou Zhentao                       
Address: No. 235, East Zhongshan Road, Zhenjiang City, Jiangsu Province.    Zip code:   212000  
Tel:  0511-850129884      Fax:  0511-85035598  

In order to guarantee the performance of obligations under "Master Contracts" referred to in Article 1 hereunder, the pledgor agrees to provide a deposit pledge to the pledgee. The parties agree to enter into this Agreement through mutual consultation. Unless otherwise provided herein, the terms of this Agreement shall be construed in accordance with the Master Contracts.

Article 1 Master Contracts
Master Contracts in this Agreement refers to:
Syndicated Facility Agreement for the Project of Large Scale and High Strength Aluminum Alloy Plates entered between the pledgee and the pledgor (Aleris Aluminum (Zhenjiang) Co., Ltd.) on August 8, 2012, Amendment to Bank Syndicate Term Loan (No. 150339028D16121701) dated December 21st, 2016, and other separate agreements signed or to be signed pursuant thereto, and their relevant amendments or supplements, which expressly provides that it is one of the Master Contracts.  

1

Article 2 Secured Debt
Debts under the Master Contracts are the secured debts under this Agreement, including principal (including the excessive part allowed under Letter of Credit), interest (including statutory interest, agreed interest, compound interest and penalty interest), penalty, damage, the cost to realize creditor’s rights (including but not limited to litigation costs, attorneys' fees, notary fees, and enforcement fees), pledgee’s loss(es) and all other expenses caused due to default by the pledgor (in the case of counter-guarantee; the same below).

Article 3 Identification of Deposit under Specific Financing Business
When entering into the financing business under the Master Contracts referred to in Article 1 hereunder, the pledgor and the pledgee shall specify the principal contract and debts secured by each deposit, the amount of the deposit and the terms of payment in the Deposit Pledge Confirmation Letter or corresponding application forms or contracts (including but not limited to the deposit pledge clause therein), so that each installment of deposit pledged can be identified for that certain master contract and debts secured by such deposit.

Article 4 Deposit Account
		
	1. 
	The pledgor shall open a deposit account at the pledgee in accordance with related laws, regulations, regulatory requirements and business requirements of pledgee regarding opening of a deposit account. 

		
	2. 
	The pledgee shall keep confidential information regarding pledgor’s deposit account. The pledgee shall not provide any information or materials about the pledgee's account to any entity or individual (other than the pledgor), unless the disclosure is required under laws or administrative regulations.

		
	3. 
	The deposit amount shall be denominated and settled in RMB. During the year 2017 to 2019, the balance in the deposit account in each year shall be a full year repayment amount under the syndicated loan due in such given year; and starting from 2020, the balance in the deposit account shall be the repayment amount due in the next payment period.  Detailed requirements on the deposit account balance are as follows: 

2

	
			
	No.
	Period
	Deposit Account Balance

	1
	From Dec 31, 2016 to Dec 30, 2017
	RMB24,000,000

	2
	From Dec 31, 2017 to Dec 30, 2018
	RMB36,000,000

	3
	From Dec 31, 2018 to Dec 30, 2019
	RMB48,000,000

	4
	From Dec 31, 2019 to Jun 29, 2020
	RMB60,000,000

	5
	From Jun 30, 2020 to Dec 30, 2020
	RMB60,000,000

	6
	From Dec 31, 2020 to Jun 29, 2021
	RMB90,000,000

	7
	From Jun 30, 2021 to Dec 30, 2021
	RMB90,000,000

	8
	From Dec 31, 2021 to Jun 29, 2022
	RMB120,000,000

	9
	From Jun 30, 2022 to Dec 30, 2022
	RMB120,000,000

	10
	From Dec 31,2022 to Jun 29, 2023
	RMB120,000,000

	11
	From Jun 30, 2023 to Dec 30, 2023
	RMB120,000,000

	12
	From Dec 31, 2023 to May 16, 2024
	RMB252,484,638

		
	4. 
	When each loan principal repayment becomes due, the lender may deduct such principal amount from the deposit account. The pledgor shall replenish any shortfall in the deposit account in accordance with this Agreement within 10 business days thereafter.

Article 5 Delivery of Guarantee Deposit
		
	1. 
	The pledgor shall transfer the deposit into the deposit account by installments at the time and in the amount agreed by the parties.

		
	2. 
	If the pledgee incurs additional liability due to the following reasons, including but not limited to amendment to letter of credit or letter of guarantee, the pledgee is entitled to request the pledgor to increase the deposit or provide other security acceptable to the pledgee. If the pledgor does not provide the aforementioned security as requested, the pledgee may refuse to enter into relevant business with the pledgor.

		
	3. 
	Without written consent from the pledgee, the pledgor shall not withdraw or request pledgee to return the delivered deposit until the secured debts are repaid in full.

Article 6 Decrease in Value of Deposit  
In the event the value of the deposit decreases due to currency exchange rate fluctuation or other reasons not attributable to the pledgee, which may endanger the rights of the pledgee, the pledgee shall have the right to demand the pledgor (and the pledgor shall be obligated) to provide additional deposit or other security in an amount equal to the decreased amount. 

3

Article 7 Deposit Interest
The pledge shall include all interests accrued on deposit, and the pledgee may apply the interest accrued on the deposit for repayment of the secured debt.
Article 8 Pledge Enforcement Event
If the pledgor fails to make any payment to the pledgee on any ordinary repayment date, performance date or early repayment date in accordance with agreements between the parties, the pledgee may enforce the pledge in accordance with laws, regulations or this Agreement. 
Article 9 Enforcement of Pledge
When this pledge becomes enforceable, the pledgee is entitled to apply the deposit to first repay costs occurred under the Master Contracts, and then apply the remaining part for principal repayment, and the pledgee may also pay the deposit to other parties directly. 
If the secured debts are secured by other collateral or guarantee in addition to those under this Agreement, such additional collateral or guarantee will not affect the pledgee’s right under this Agreement, and the pledgee may in its sole discretion determine the sequence of enforcement. The pledgor shall undertake the security liabilities in accordance with this Agreement and shall not object to the enforcement hereunder based on the existence of other guarantee or the sequence of enforcement.
Article 10 Return of Deposit 
		
	1. 
	The pledgee shall return a specific deposit to the pledgor when:

		
	(1) 
	The pledgor has repaid in full the corresponding secured debt that is guaranteed by the pledge of the given deposit;

		
	(2) 
	The pledgor has provided other guarantee acceptable to the pledgee, as substitute, to secure repayment of the corresponding secured debt guaranteed by the given deposit; or

		
	(3) 
	After the pledge is enforced, any part of the deposit remains.

		
	2. 
	The pledgee will return the deposit to the pledgor in accordance with the refund method requested by the pledgor.  If the pledgor does not specify any refund method, the pledge will return the deposit to the pledgor following the original funding method. If the deposit cannot be returned in accordance with foregoing methods, the pledgee will keep the deposit on behalf of the pledgor. 

		
	3. 
	If the pledgee returns to the pledgor a deposit under a specific business, and the pledgee makes a request to use such deposit to secure payment under another business (and the pledgor agrees with such request), then the pledgor shall submit to the pledgee the Deposit Pledge Confirmation Letter or 

4

other written confirmation documents.  Thereafter, the pledgee may directly use such deposit as security for such other business, and remit the deposit into the deposit account designated by the pledgee In this case, if the pledgor believes that the remaining deposit is not sufficient, it may request the pledgee to replenish the deposit.  If the pledgor believes that the remaining deposit exceeds the amount required to secure such other business applied for by the pledgee, the pledgee may return the excess part to the pledgor in accordance with paragraph 2 of this article. 

Article 11 Relation between this Agreement and the Master Contracts
Given that the pledgor is the debtor under the Master Contracts, both parties hereby acknowledge and confirm that:
		
	1. 
	If the parties agree to terminate the Master Contracts or accelerate the maturity date of the secured debts under the Master Contracts, the deposit hereunder shall be applied to repay debts that have occurred.

		
	2. 
	If the parties agree to amend or modify the Master Contracts, the pledgor agrees that the deposit hereunder shall secure repayment of debts under the amended or modified Master Contracts.

		
	3. 
	If after the pledgee issues a letter of credit to the pledgor, it subsequently provides import bill advance, buyer bill advance or any other financing to the pledgor, the pledgor agrees that the deposit hereunder shall continuously and uninterruptedly secure repayment of the debts under such subsequent financing.

Article 12 Pledgor’s Representation and Warranties 
The pledgor hereby represents and warrants that: 
		
	1. 
	The pledgor is duly registered and validly existing, is fully capable for civil rights and acts required for execution and performance of this Agreement, has full title to legal ownership or the right of disposition regarding the deposit pledged hereunder.

		
	2. 
	The pledgor fully understands the content of the Master Contracts and genuinely intends to sign and perform this Agreement, and has obtained all proper authorizations in connection with the pledge that are required under it Articles of Association or other constitutional documents.  The signing and performance of this Agreement do and will not breach any contracts, agreements or other legal documents binding upon the pledgor. The pledgor has obtained or will obtain all necessary approvals, permits, filings or registration in connection with the creation of the pledge hereunder.

		
	3. 
	The signatures on each of the invoices or documents to be signed by the pledgor are genuine 

5

signatures of the authorized representatives of the pledgor, and the company seal affixed thereto is authenticate and valid.
		
	4. 
	Any underlying transactions in connection with this Agreement shall be proper and lawful, and shall not involve fraud, money laundering or any other illegal activities.

Article 13 Liabilities for Fault in Contract Formation 
If this Agreement does not take effect and the pledge is not established after this Agreement is signed because of pledgor’s refusal or delay in deposit payment or other reasons attributable to the pledgor, the pledgor shall be deemed to be in default for contract formation. In this case, if the pledgee suffers from any losses or damages, the pledgor shall indemnify the pledgee for such losses or damages.
Article 14 Breach of Contract and Consequences
The pledgor shall be in breach of this Agreement in any one of the following circumstances:
		
	1. 
	The pledgor impedes in any way the pledgee’s disposal of the deposit pursuant to this Agreement;

		
	2. 
	The pledgor refuses to supplement the deposit or provide other forms of guarantee as required by the pledgee when the value of the deposits decreases as provided in article 6 hereunder;

		
	3. 
	The pledgor makes false representations or warranties in this Agreement, or it breaches any of its covenants hereunder;

		
	4. 
	The pledgor violates other provisions of this Agreement concerning rights and obligations of the parties;

		
	5. 
	The pledgor terminates its business operation, or is dissolved, suspended or declared bankrupt; or

		
	6. 
	The pledgor breaches other contracts between the pledgor and the pledgee or between the pledgor and other institutions of the Bank of China.

In case of any breach provided in the preceding paragraph, the pledgee may take the following measures, individually or concurrently, which it deems appropriate in the given circumstances: 
		
	1. 
	to require the pledgor to correct its breach within limited period;

		
	2. 
	to entirely or partially reduce, suspend or terminate the credit granted to the pledgor;

		
	3. 
	to entirely or partially suspend or terminate review of the pledgor’s applications under other business contracts; to entirely or partially suspend or terminate funding or processing of any loan that is not draw down or any trade financing that is being processed;

		
	4. 
	to declare that principal and interest for any outstanding loan or trade finance funds or any other payables owed by the pledgor under other contracts, partially or entirely, become due immediately;

6

		
	5. 
	to terminate or rescind this Agreement, and to wholly or partly terminate or rescind other agreements between the pledgor and the pledgee;

		
	6. 
	to claim against the pledgor for damages incurred by the pledgee due to pledgor’s breach hereof;

		
	7. 
	to enforce the pledgee’s right against the deposit;

		
	8. 
	to take other actions that the pledgee deems appropriate.

Article 15 Reservation
In the event that one party fails to exercise part or all of its rights under this Agreement, or fails to require the other party to perform or assume part or all of its responsibilities or obligations, this shall not constitute a waiver of such rights or an exemption of such responsibilities or obligations.
Where one party grants the other party any grace period or extension of time or it is late in exercising any rights, this shall not affect such parties rights under this Agreement or under applicable laws and regulations, nor shall this be deemed as such party’s waiver of any rights.
Article 16 Amendment, Modification or Termination
Any amendment or modification of this Agreement shall be made in written form after both parties reach consensus through consultation, and such amendment or modification shall constitute an indivisible part of this Agreement.
This Agreement shall not be terminated before the parties have performed all obligations and exercised all rights here under, unless otherwise required by laws or regulations or agreed on by the parties.
Invalidity of any provisions of this Agreement shall not affect validity of other provisions hereunder, unless otherwise required by laws or regulations or agreed on by the parties.
Article 17 Governing Law and Dispute Resolution
The laws of People’s Republic of China shall govern this Agreement.
The parties shall settle any conflicts or disputes arising from the performance of this Agreement through consultation. Failing to resolve the disputes through consultation, the parties agree to resolve the disputes following the method provided in the Master Contract.
To the extent such conflicts or disputes do not affect performance of other terms of this Agreement, the parties shall continue to perform such other terms.
Article 18 Appendix
The Application for Opening Deposit Account and the Deposit Pledge Confirmation Letter signed pursuant 

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to this Agreement and other appendices confirmed by both parties are integral parts of this Agreement and shall have the same legal force with this Agreement.

Article 19 Others
		
	1. 
	The pledgor shall not transfer any of the rights or obligations under this Agreement to a third party without the written consent of the pledgee.

		
	2. 
	The pledgor hereby acknowledges that the pledgee may entrust other institutions of the Bank of China Limited to perform the rights and obligations in this Agreement. The other institutions of Bank of China Limited so entrusted by the pledgee may exercise all of pledgee’s rights hereunder and if necessary, may litigate or arbitrate any disputes arising out of this Agreement.

		
	3. 
	Without restricting other provisions hereunder, this Agreement shall bind on the parties and their respective heirs and assignees.

		
	4. 
	Unless otherwise agreed, the parties design the registered address provided in this Agreement as the address for communication and contracts, and undertake to notify the other party in writing of any change to its registered address.

		
	5. 
	All the titles and names of business are used for the convenience of reference, and shall not be used for interpretation of the content of any provisions or the parties’ rights and obligations.

Article 20 Effectiveness and Creation of Pledge
This Agreement shall take effect after the legal representatives, persons in charge or authorized representatives of both parties sign or affix personal seal on this Agreement and after this Agreement is affixed with company chop of each parties.
The pledge will be created when the deposit is delivered to pledgee.

This Agreement is executed in two counterparts with each party holding one original. The counterparts have equal force.

Pledgor: Aleris Aluminum (Zhenjiang) Co., Ltd.:
Authorized Signatory: /s/ Gerd F. Jegodzinski

Pledgee: Bank of China Limited, Zhenjiang Jingkou Sub-branch (Chop affixed)
Authorized Signatory: /s/ Zhou Zhentao
 

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