Document:

EX-10.2 TERM LOAN FACILITY

Exhibit
10.2

EXECUTION COPY

$960,000,000

CREDIT AGREEMENT

dated as of July 6, 2007,

among

NOVELIS INC.,

as Canadian Borrower,

NOVELIS CORPORATION

as U.S. Borrower,

AV ALUMINUM INC.,

as Holdings,

and

THE OTHER GUARANTORS PARTY HERETO,

THE LENDERS PARTY HERETO,

UBS AG, STAMFORD BRANCH,

as Administrative Agent and as Collateral Agent,

UBS SECURITIES LLC,

as Syndication Agent,

ABN AMRO INCORPORATED,

as Documentation Agent,

and

UBS SECURITIES LLC,

ABN AMRO INCORPORATED,

as Joint Lead Arrangers and Joint Bookmanagers

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	 
	 	 	 	 	 	 
	ARTICLE I. DEFINITIONS	 	 	2	 
	 
	 	 	 	 	 	 
	SECTION 1.01
	 	Defined Terms	 	 	2	 
	SECTION 1.02
	 	Classification of Loans and Borrowings	 	 	52	 
	SECTION 1.03
	 	Terms Generally; Currency Translation	 	 	52	 
	SECTION 1.04
	 	Accounting Terms; GAAP	 	 	53	 
	SECTION 1.05
	 	Resolution of Drafting Ambiguities	 	 	53	 
	 
	 	 	 	 	 	 
	ARTICLE II. THE CREDITS	 	 	54	 
	 
	 	 	 	 	 	 
	SECTION 2.01
	 	Commitments	 	 	54	 
	SECTION 2.02
	 	Loans	 	 	54	 
	SECTION 2.03
	 	Borrowing Procedure	 	 	55	 
	SECTION 2.04
	 	Repayment of Loans; Evidence of Debt	 	 	56	 
	SECTION 2.05
	 	Fees	 	 	57	 
	SECTION 2.06
	 	Interest on Loans	 	 	57	 
	SECTION 2.07
	 	Termination of Commitments	 	 	58	 
	SECTION 2.08
	 	Interest Elections	 	 	58	 
	SECTION 2.09
	 	Amortization of Term Loan Borrowings	 	 	60	 
	SECTION 2.10
	 	Optional and Mandatory Prepayments of Loans	 	 	60	 
	SECTION 2.11
	 	Alternate Rate of Interest	 	 	65	 
	SECTION 2.12
	 	Yield Protection; Change in Law Generally	 	 	66	 
	SECTION 2.13
	 	Breakage Payments	 	 	67	 
	SECTION 2.14
	 	Payments Generally; Pro Rata Treatment; Sharing of Setoffs	 	 	68	 
	SECTION 2.15
	 	Taxes	 	 	70	 
	SECTION 2.16
	 	Mitigation Obligations; Replacement of Lenders	 	 	72	 
	SECTION 2.17
	 	[INTENTIONALLY OMITTED]	 	 	74	 
	SECTION 2.18
	 	[INTENTIONALLY OMITTED]	 	 	74	 
	SECTION 2.19
	 	Interest Act (Canada); Criminal Rate of Interest; Nominal Rate of Interest	 	 	74	 
	SECTION 2.20
	 	[INTENTIONALLY OMITTED]	 	 	75	 
	SECTION 2.21
	 	[INTENTIONALLY OMITTED]	 	 	75	 
	SECTION 2.22
	 	[INTENTIONALLY OMITTED]	 	 	75	 
	SECTION 2.23
	 	Incremental Term Loan Commitments	 	 	75	 
	 
	 	 	 	 	 	 
	ARTICLE III. REPRESENTATIONS AND WARRANTIES	 	 	77	 
	 
	 	 	 	 	 	 
	SECTION 3.01
	 	Organization; Powers	 	 	77	 
	SECTION 3.02
	 	Authorization; Enforceability	 	 	77	 
	SECTION 3.03
	 	No Conflicts	 	 	78	 
	SECTION 3.04
	 	Financial Statements; Projections	 	 	78	 
	SECTION 3.05
	 	Properties	 	 	79	 
	SECTION 3.06
	 	Intellectual Property	 	 	80	 

 

i

 

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	 
	 	 	 	 	 	 
	SECTION 3.07
	 	Equity Interests and Subsidiaries	 	 	80	 
	SECTION 3.08
	 	Litigation; Compliance with Laws	 	 	81	 
	SECTION 3.09
	 	Agreements	 	 	81	 
	SECTION 3.10
	 	Federal Reserve Regulations	 	 	82	 
	SECTION 3.11
	 	Investment Company Act	 	 	82	 
	SECTION 3.12
	 	Use of Proceeds	 	 	82	 
	SECTION 3.13
	 	Taxes	 	 	82	 
	SECTION 3.14
	 	No Material Misstatements	 	 	83	 
	SECTION 3.15
	 	Labor Matters	 	 	83	 
	SECTION 3.16
	 	Solvency	 	 	83	 
	SECTION 3.17
	 	Employee Benefit Plans	 	 	84	 
	SECTION 3.18
	 	Environmental Matters	 	 	84	 
	SECTION 3.19
	 	Insurance	 	 	86	 
	SECTION 3.20
	 	Security Documents	 	 	86	 
	SECTION 3.21
	 	Acquisition Documents; Material Indebtedness Documents; Representations and Warranties in Acquisition Agreement	 	 	89	 
	SECTION 3.22
	 	Anti-Terrorism Law	 	 	89	 
	SECTION 3.23
	 	[INTENTIONALLY OMITTED]	 	 	90	 
	SECTION 3.24
	 	Location of Material Inventory and Equipment	 	 	90	 
	SECTION 3.25
	 	[INTENTIONALLY OMITTED]	 	 	90	 
	SECTION 3.26
	 	Senior Notes; Material Indebtedness	 	 	90	 
	SECTION 3.27
	 	Centre of Main Interests and Establishments	 	 	90	 
	SECTION 3.28
	 	Holding and Dormant Companies	 	 	91	 
	SECTION 3.29
	 	Hindalco Acquisition	 	 	91	 
	SECTION 3.30
	 	Excluded Collateral Subsidiaries	 	 	91	 
	SECTION 3.31
	 	Immaterial Subsidiaries	 	 	91	 
	 
	 	 	 	 	 	 
	ARTICLE IV. CONDITIONS TO CREDIT EXTENSIONS	 	 	91	 
	 
	 	 	 	 	 	 
	SECTION 4.01
	 	Conditions to Initial Credit Extension	 	 	91	 
	SECTION 4.02
	 	Conditions to Credit Extensions	 	 	99	 
	SECTION 4.03
	 	Certain Collateral Matters	 	 	100	 
	 
	 	 	 	 	 	 
	ARTICLE V. AFFIRMATIVE COVENANTS	 	 	100	 
	 
	 	 	 	 	 	 
	SECTION 5.01
	 	Financial Statements, Reports, etc.	 	 	100	 
	SECTION 5.02
	 	Litigation and Other Notices	 	 	103	 
	SECTION 5.03
	 	Existence; Businesses and Properties	 	 	103	 
	SECTION 5.04
	 	Insurance	 	 	104	 
	SECTION 5.05
	 	Payment of Taxes	 	 	105	 
	SECTION 5.06
	 	Employee Benefits	 	 	106	 
	SECTION 5.07
	 	Maintaining Records; Access to Properties and Inspections; Annual Meetings	 	 	106	 
	SECTION 5.08
	 	Use of Proceeds	 	 	107	 
	SECTION 5.09
	 	Compliance with Environmental Laws; Environmental Reports	 	 	107	 
	SECTION 5.10
	 	Interest Rate Protection	 	 	107	 
	SECTION 5.11
	 	Additional Collateral; Additional Guarantors	 	 	108	 

 

ii

 

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	 
	 	 	 	 	 	 
	SECTION 5.12
	 	Security Interests; Further Assurances	 	 	110	 
	SECTION 5.13
	 	Information Regarding Collateral	 	 	110	 
	SECTION 5.14
	 	Affirmative Covenants with Respect to Leases	 	 	111	 
	SECTION 5.15
	 	Secured Obligations	 	 	111	 
	SECTION 5.16
	 	Post-Closing Covenants	 	 	111	 
	 
	 	 	 	 	 	 
	ARTICLE VI. NEGATIVE COVENANTS	 	 	111	 
	 
	 	 	 	 	 	 
	SECTION 6.01
	 	Indebtedness	 	 	111	 
	SECTION 6.02
	 	Liens	 	 	114	 
	SECTION 6.03
	 	Sale and Leaseback Transactions	 	 	117	 
	SECTION 6.04
	 	Investments, Loan and Advances	 	 	117	 
	SECTION 6.05
	 	Mergers, Amalgamations and Consolidations	 	 	120	 
	SECTION 6.06
	 	Asset Sales	 	 	121	 
	SECTION 6.07
	 	European Cash Pooling Arrangements	 	 	123	 
	SECTION 6.08
	 	Dividends	 	 	123	 
	SECTION 6.09
	 	Transactions with Affiliates	 	 	124	 
	SECTION 6.10
	 	[INTENTIONALLY OMITTED]	 	 	125	 
	SECTION 6.11
	 	Prepayments of Other Indebtedness; Modifications of Organizational Documents and Other Documents, etc.	 	 	125	 
	SECTION 6.12
	 	Limitation on Certain Restrictions on Subsidiaries	 	 	127	 
	SECTION 6.13
	 	Limitation on Issuance of Capital Stock	 	 	128	 
	SECTION 6.14
	 	Limitation on Creation of Subsidiaries	 	 	129	 
	SECTION 6.15
	 	Business	 	 	129	 
	SECTION 6.16
	 	Limitation on Accounting Changes	 	 	129	 
	SECTION 6.17
	 	Fiscal Year	 	 	129	 
	SECTION 6.18
	 	Lease Obligations	 	 	129	 
	SECTION 6.19
	 	No Further Negative Pledge	 	 	129	 
	SECTION 6.20
	 	Anti-Terrorism Law; Anti-Money Laundering	 	 	130	 
	SECTION 6.21
	 	Embargoed Persons	 	 	130	 
	SECTION 6.22
	 	Tax Shelter Reporting	 	 	131	 
	 
	 	 	 	 	 	 
	ARTICLE VII. GUARANTEE	 	 	131	 
	 
	 	 	 	 	 	 
	SECTION 7.01
	 	The Guarantee	 	 	131	 
	SECTION 7.02
	 	Obligations Unconditional	 	 	132	 
	SECTION 7.03
	 	Reinstatement	 	 	133	 
	SECTION 7.04
	 	Subrogation; Subordination	 	 	133	 
	SECTION 7.05
	 	Remedies	 	 	133	 
	SECTION 7.06
	 	Instrument for the Payment of Money	 	 	134	 
	SECTION 7.07
	 	Continuing Guarantee	 	 	134	 
	SECTION 7.08
	 	General Limitation on Guarantee Obligations	 	 	134	 
	SECTION 7.09
	 	Release of Guarantors	 	 	134	 
	SECTION 7.10
	 	Certain Tax Matters	 	 	134	 
	SECTION 7.11
	 	German Guarantor	 	 	135	 
	SECTION 7.12
	 	Swiss Guarantors	 	 	137	 
	SECTION 7.13
	 	Irish Guarantor	 	 	138	 

 

iii

 

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	 
	 	 	 	 	 	 
	SECTION 7.14
	 	Brazilian Guarantor	 	 	138	 
	 
	 	 	 	 	 	 
	ARTICLE VIII. EVENTS OF DEFAULT	 	 	138	 
	 
	 	 	 	 	 	 
	SECTION 8.01
	 	Events of Default	 	 	138	 
	SECTION 8.02
	 	Rescission	 	 	141	 
	SECTION 8.03
	 	Application of Proceeds	 	 	142	 
	 
	 	 	 	 	 	 
	ARTICLE IX. [INTENTIONALLY OMITTED]	 	 	143	 
	 
	 	 	 	 	 	 
	ARTICLE X. THE ADMINISTRATIVE AGENT AND THE COLLATERAL AGENT	 	 	143	 
	 
	 	 	 	 	 	 
	SECTION 10.01
	 	Appointment and Authority	 	 	143	 
	SECTION 10.02
	 	Rights as a Lender	 	 	143	 
	SECTION 10.03
	 	Exculpatory Provisions	 	 	143	 
	SECTION 10.04
	 	Reliance by Agent	 	 	144	 
	SECTION 10.05
	 	Delegation of Duties	 	 	145	 
	SECTION 10.06
	 	Resignation of Agent	 	 	145	 
	SECTION 10.07
	 	Non-Reliance on Agent and Other Lenders	 	 	145	 
	SECTION 10.08
	 	No Other Duties, etc.	 	 	146	 
	SECTION 10.09
	 	Indemnification	 	 	146	 
	SECTION 10.10
	 	[INTENTIONALLY OMITTED]	 	 	146	 
	SECTION 10.11
	 	Concerning the Collateral and the Related Loan Documents	 	 	146	 
	SECTION 10.12
	 	Release	 	 	146	 
	SECTION 10.13
	 	Acknowledgment of Security Trust Deed	 	 	147	 
	 
	 	 	 	 	 	 
	ARTICLE XI. MISCELLANEOUS	 	 	147	 
	 
	 	 	 	 	 	 
	SECTION 11.01
	 	Notices	 	 	147	 
	SECTION 11.02
	 	Waivers; Amendment	 	 	150	 
	SECTION 11.03
	 	Expenses; Indemnity; Damage Waiver	 	 	153	 
	SECTION 11.04
	 	Successors and Assigns	 	 	155	 
	SECTION 11.05
	 	Survival of Agreement	 	 	158	 
	SECTION 11.06
	 	Counterparts; Integration; Effectiveness	 	 	158	 
	SECTION 11.07
	 	Severability	 	 	158	 
	SECTION 11.08
	 	Right of Setoff	 	 	159	 
	SECTION 11.09
	 	Governing Law; Jurisdiction; Consent to Service of Process	 	 	159	 
	SECTION 11.10
	 	Waiver of Jury Trial	 	 	160	 
	SECTION 11.11
	 	Headings	 	 	160	 
	SECTION 11.12
	 	Treatment of Certain Information; Confidentiality	 	 	160	 
	SECTION 11.13
	 	USA PATRIOT Act Notice	 	 	161	 
	SECTION 11.14
	 	Interest Rate Limitation	 	 	161	 
	SECTION 11.15
	 	Lender Addendum	 	 	161	 
	SECTION 11.16
	 	Obligations Absolute	 	 	162	 
	SECTION 11.17
	 	Intercreditor Agreement	 	 	162	 
	SECTION 11.18
	 	Judgment Currency	 	 	162	 
	SECTION 11.19
	 	[INTENTIONALLY OMITTED]	 	 	163	 

 

iv

 

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	 
	 	 	 	 	 	 
	SECTION 11.20
	 	[INTENTIONALLY OMITTED]	 	 	163	 
	SECTION 11.21
	 	Abstract Acknowledgment of Indebtedness and Joint Creditorship	 	 	163	 
	SECTION 11.22
	 	Special Appointment of Collateral Agent for German Security	 	 	164	 
	SECTION 11.23
	 	Special Appointment of Administrative Agent in Relation to South Korea	 	 	165	 
	SECTION 11.24
	 	Designation of Collateral Agent under Civil Code of Quebec	 	 	165	 
	SECTION 11.25
	 	Maximum Liability	 	 	166	 

 

v

 

	 	 	 
	ANNEXES

	 
	 	 
	Annex I
	 	Applicable Margin
	Annex II
	 	Amortization Table
	Annex III
	 	Mandatory Cost Formula
	 
	 	 
	SCHEDULES

	 
	 	 
	Schedule 1.01(a)
	 	Refinancing Indebtedness to Be Repaid
	Schedule 1.01(b)
	 	Subsidiary Guarantors
	Schedule 1.01(c)
	 	Excluded Collateral Subsidiaries
	Schedule 1.01(d)
	 	Immaterial Subsidiaries
	Schedule 1.01(e)
	 	Specified Holders
	Schedule 3.06(c)
	 	Violations or Proceedings
	Schedule 3.17
	 	Pension Matters
	Schedule 3.19
	 	Insurance
	Schedule 3.21
	 	Acquisition Documents
	Schedule 3.24
	 	Location of Material Inventory
	Schedule 4.01(g)
	 	Local and Foreign Counsel
	Schedule 4.01(l)
	 	Sources and Uses
	Schedule 4.01(o)(iii)
	 	Title Insurance Amounts
	Schedule 5.11(b)
	 	Certain Subsidiaries
	Schedule 5.16
	 	Post-Closing Covenants
	Schedule 6.01(b)
	 	Existing Indebtedness
	Schedule 6.02(c)
	 	Existing Liens
	Schedule 6.04(b)
	 	Existing Investments
	 
	 	 
	EXHIBITS

	 
	 	 
	Exhibit A
	 	Form of Administrative Questionnaire
	Exhibit B
	 	Form of Assignment and Assumption
	Exhibit C
	 	Form of Borrowing Request
	Exhibit D
	 	Form of Compliance Certificate
	Exhibit E
	 	Form of Interest Election Request
	Exhibit F
	 	Form of Joinder Agreement
	Exhibit G
	 	Form of Landlord Access Agreement
	Exhibit H
	 	[INTENTIONALLY OMITTED]
	Exhibit I
	 	Form of Lender Addendum
	Exhibit J
	 	Form of Mortgage
	Exhibit K-1
	 	Form of U.S. Term Loan Note
	Exhibit K-2
	 	Form of Canadian Term Loan Note
	Exhibit L-1
	 	Form of Perfection Certificate
	Exhibit L-2
	 	Form of Perfection Certificate Supplement
	Exhibit M-1
	 	Form of U.S. Security Agreement
	Exhibit M-2
	 	Form of Canadian Security Agreement
	Exhibit M-3
	 	Form of U.K. Security Agreement
	Exhibit M-4
	 	Form of Swiss Security Agreement

 

vi

 

	 	 	 
	Exhibit M-5
	 	Form of German Security Agreement
	Exhibit M-6
	 	Form of Irish Security Agreement
	Exhibit M-7
	 	Form of Brazilian Security Agreement
	Exhibit N
	 	Form of Opinion of Company Counsel
	Exhibit O
	 	Form of Solvency Certificate
	Exhibit P
	 	Form of Intercompany Note
	Exhibit Q
	 	Form of Term Loan Collateral Agent Appointment Letter
	Exhibit R
	 	Form of Receivables Purchase Agreement

 

vii

 

CREDIT AGREEMENT

     This CREDIT AGREEMENT (this “Agreement”), dated as of July 6, 2007, is among NOVELIS INC., a
corporation formed under the Canada Business Corporations Act (the “Canadian Borrower”), NOVELIS
CORPORATION, a Texas corporation (the “U.S. Borrower” and, together with Canadian Borrower, the
“Borrowers”), AV ALUMINUM INC., a corporation formed under the Canada Business Corporations Act,
the Subsidiary Guarantors (such term and each other capitalized term used but not defined herein
having the meaning given to it in Article I), the Lenders, UBS AG, STAMFORD BRANCH, as
administrative agent (in such capacity, “Administrative Agent”) for the Lenders, UBS AG, STAMFORD
BRANCH, as collateral agent (in such capacity, “Collateral Agent”) for the Secured Parties, UBS
SECURITIES LLC, as syndication agent (in such capacity, “Syndication Agent”), ABN AMRO
INCORPORATED, as documentation agent (in such capacity, “Documentation Agent”), and UBS SECURITIES
LLC and ABN AMRO INCORPORATED, as joint lead arrangers and joint bookmanagers (in such capacities,
“Arrangers”).

WITNESSETH:

     WHEREAS, Holdings, Canadian Borrower, a direct Wholly Owned Subsidiary of Holdings, and
Hindalco Industries Limited (“Acquiror”) entered into that certain Arrangement Agreement, dated as
of February 10, 2007 (as amended, supplemented or otherwise modified from time to time, together
with any annexes, schedules, exhibits or other attachments thereto, the “Acquisition Agreement”),
pursuant to which Holdings agreed to acquire Canadian Borrower via a plan of arrangement under
Section 192 of the Canada Business Corporations Act (the “Hindalco Acquisition”).

     WHEREAS, the Hindalco Acquisition closed on the Acquisition Closing Date.

     WHEREAS, the Borrowers have requested the Lenders to extend credit in the form of Term Loans
on the Closing Date in an aggregate principal amount not in excess of $960 million, consisting of
(i) U.S. Term Loans in an aggregate principal amount not in excess of $660 million and (ii)
Canadian Term Loans in an aggregate principal amount not in excess of $300 million.

     WHEREAS, the proceeds of the Loans are to be used in accordance with Section 3.12.

     WHEREAS, Holdings, Canadian Borrower, the U.S. Borrower and the other Subsidiary Guarantors
party thereto shall enter into the Revolving Credit Agreement providing for Revolving Credit Loans
at any time and from time to time prior to the Revolving Credit Maturity Date in the aggregate
principal amount of up to $800 million simultaneously herewith.

     NOW, THEREFORE, the Lenders are willing to extend such Term Loans to the Borrowers on the
terms and subject to the conditions set forth herein. Accordingly, the parties hereto agree as
follows:

 

 

 

ARTICLE I.

DEFINITIONS

SECTION 1.01 Defined Terms. As used in this Agreement (including the preamble), the following terms shall have the
meanings specified below:

     “ABN AMRO” shall mean ABN AMRO Bank N.V.

     “ABR”, when used in reference to any Loan or Borrowing, is used when such Loan, or the Loans
comprising such Borrowing, are bearing interest at a rate determined by reference to the Alternate
Base Rate.

     “ABR Borrowing” shall mean a Borrowing comprised of ABR Loans.

     “ABR Loan” shall mean any Loan bearing interest at a rate determined by reference to the
Alternate Base Rate in accordance with the provisions of ARTICLE II.

     “Accounts” shall mean all “accounts,” as such term is defined in the UCC as in effect on the
date hereof in the State of New York, in which such Person now or hereafter has rights.

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

     “Acquisition” shall mean any transaction or series of related transactions for the direct or
indirect (a) acquisition of all or substantially all of the property and assets or business of any
person, or of any business unit, line of business or division of any person or assets constituting
a business unit, line of business or division of any other person, (b) acquisition of in excess of
50% of the Equity Interests of any person or otherwise causing a person to become a Subsidiary of
the acquiring person, or (c) merger, consolidation or amalgamation, whereby a person becomes a
Subsidiary of the acquiring person, or any other consolidation with any person, whereby a person
becomes a Subsidiary of the acquiring person.

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

     “Acquisition Closing Date” shall mean May 15, 2007.

     “Acquisition Consideration” shall mean the purchase consideration for any Permitted
Acquisition, whether paid in cash, properties, any assumption of Indebtedness or otherwise (other
than by the issuance of Qualified Capital Stock of Holdings permitted to be issued hereunder) and
whether payable at or prior to the consummation of such Permitted Acquisition or deferred for
payment at any future time, whether or not any such future payment is subject to the occurrence of
any contingency, and includes any and all payments representing “earn-outs” and other agreements to
make any payment the amount of which is, or the terms of payment of which are, in any respect
subject to or contingent upon the revenues, income, cash flow or profits (or the like) of any
person or business; provided that any such future payment that is subject to a
contingency shall be considered Acquisition Consideration only to the extent of the reserve,
if

	 	 	 
	 

	 	2

 

any, required under GAAP at the time of such sale to be established in respect thereof by
Holdings or any of its Subsidiaries.

     “Acquisition Documents” shall have the meaning assigned to such term in Section 3.21.

     “Acquisition Material Adverse Effect” shall mean any change, effect, event, occurrence, state
of facts or development which individually or in the aggregate (a) is or would reasonably be
expected to be materially adverse to the business, operations, results of operations, affairs,
liabilities or obligations (whether absolute, accrued, conditional, contingent or otherwise),
capitalization or financial condition of Canadian Borrower and its Subsidiaries, taken as a whole;
or (b) is or would reasonably be expected to impair in any material respect the ability of Canadian
Borrower to consummate the transactions contemplated by the Acquisition Agreement or to perform its
obligations under the Acquisition Agreement on a timely basis; provided that none of the
following shall be deemed, either individually or in the aggregate, to constitute an Acquisition
Material Adverse Effect: any change, effect, event, occurrence, state of facts or development (A)
in the financial, banking, credit, securities, or commodities markets, the economy in general or
prevailing interest rates of the United States, Canada or any other jurisdiction, where Canadian
Borrower or any of its Subsidiaries has operations or significant revenues, (B) in any industry in
which Canadian Borrower or any of its Subsidiaries operates, (C) in Canadian Borrower’s stock price
or trading volume (provided that this clause (C) shall not be construed as providing that
any cause or factor affecting Canadian Borrower’s stock price or trading volume does not constitute
an Acquisition Material Adverse Effect), (D) arising as a result of a change in U.S. GAAP or
regulatory accounting principles or interpretations thereof after the date hereof, (E) in Law (as
defined in the Acquisition Agreement as of the Acquisition Closing Date) or interpretations thereof
by any Governmental Entity (as defined in the Acquisition Agreement as of the Acquisition Closing
Date), (F) arising or resulting from the announcement of the Acquisition Agreement, the pendency of
the transactions contemplated therein and in the Plan of Arrangement (as defined in the Acquisition
Agreement as of the Acquisition Closing Date), (G) arising or resulting from any failure by
Canadian Borrower to meet any internal or published projections, forecasts or revenue or earnings
predictions (provided that this clause (G) shall not be construed as providing that any
cause or factor giving rise to such failure does not constitute an Acquisition Material Adverse
Effect), (H) any continuation of an adverse trend or condition or the escalation of, or any
developments with respect to, any dispute referred to on Schedule 3.07 of Canadian Borrower
Disclosure Schedule to the Acquisition Agreement on the Acquisition Closing Date, (I) arising or
resulting from any act of war or terrorism (or, in each case, escalation thereof) or declaration of
a national emergency, or (J) arising or resulting from the acts or omissions of Acquiror and/or its
Affiliates, as determined immediately prior to the Acquisition Closing Date; except in the cases of
clauses (A), (B) and (I), to the extent such change, effect, event, occurrence, state of facts or
development has or would reasonably be expected to have a disproportionate effect on Canadian
Borrower and its Subsidiaries, taken as a whole, as compared to other persons in the industries in
which Canadian Borrower and its Subsidiaries operate unless such disproportionate change, effect,
event, occurrence, state of facts or development arises from any metal price ceiling in any of
Canadian Borrower’s customer contracts.

     “Additional Subordinated Debt Loan” shall mean any loan, advance or other extension of credit
extended by the Acquiror or any of its Affiliates (other than any Subsidiary of

	 	 	 
	
 

	 	3

 

Holdings) to Holdings having the same subordination terms as the subordination terms applicable to the
Subordinated Debt Loan as in effect on the Closing Date; provided that such loan, advance
or extension of credit shall be unsecured Indebtedness of Holdings, (i) with respect to which no
Borrower or Subsidiary has any Contingent Obligation, (ii) that will not mature prior to the 180th
day following the Final Maturity Date, (iii) that has no scheduled amortization of principal prior
to the 180th day following the Final Maturity Date, (iv) that does not require any payments in cash
of interest, principal or other amounts prior to the 180th day following the Final Maturity Date,
and (v) that has no mandatory prepayment, repurchase or redemption requirements; and
provided, further, that at least five Business Days prior to the time of incurrence
of such Indebtedness (or such shorter period as the Administrative Agent may agree), a Responsible
Officer of Holdings delivers a certificate to the Administrative Agent (together with drafts of the
documentation relating thereto) stating that Holdings has determined in good faith that such terms
and conditions satisfy the foregoing requirements.

     “Adjusted LIBOR Rate” shall mean, with respect to any Eurocurrency Borrowing for any Interest
Period, an interest rate per annum (rounded upward, if necessary, to the nearest 1/100th of 1%)
determined by the Administrative Agent to be equal to the sum of (a) (i) the LIBOR Rate for such
Eurocurrency Borrowing in effect for such Interest Period divided by (ii) 1 minus the
Statutory Reserves (if any) for such Eurocurrency Borrowing for such Interest Period plus,
(b) without duplication of any increase in interest rate attributable to Statutory Reserves
pursuant to the foregoing clause (ii), the Mandatory Cost (if any).

     “Administrative Agent” shall have the meaning assigned to such term in the preamble hereto and
includes each other person appointed as the successor pursuant to ARTICLE X.

     “Administrative Borrower” shall mean Novelis Inc., or any successor entity serving in that
role pursuant to Section 2.03(b).

     “Administrative Questionnaire” shall mean an Administrative Questionnaire in substantially the
form of Exhibit A.

     “Affiliate” shall mean, when used with respect to a specified person, another person that
directly, or indirectly through one or more intermediaries, Controls or is Controlled by or is
under common Control with the person specified; provided, however, that, for
purposes of Section 6.09, the term “Affiliate” shall also include (i) any person that
directly or indirectly owns more than 15% of any class of Equity Interests of the person specified
or (ii) any person that is an executive officer or director of the person specified.

     “Agents” shall mean the Administrative Agent and the Collateral Agent; and “Agent” shall mean
any of them.

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

     “Alternate Base Rate” shall mean, for any day, a rate per annum (rounded upward, if necessary,
to the nearest 1/100th of 1%) equal to the greater of (a) the Base Rate in effect on such day and
(b) the Federal Funds Effective Rate in effect on such day plus 0.50%. If the
Administrative Agent shall have determined (which determination shall be conclusive absent
manifest error) that it is unable to ascertain the Federal Funds Effective Rate for any reason,

	 	 	 
	
 

	 	
4

 

including the inability of the Administrative Agent to obtain sufficient quotations in accordance
with the terms of the definition thereof, the Alternate Base Rate shall be determined without
regard to clause (b) of the preceding sentence until the circumstances giving rise to such
inability no longer exist. Any change in the Alternate Base Rate due to a change in the Base Rate
or the Federal Funds Effective Rate shall be effective on the effective date of such change in the
Base Rate or the Federal Funds Effective Rate, respectively.

     “Anti-Terrorism Laws” shall have the meaning assigned to such term in Section 3.22.

     “Applicable Margin” shall mean, for any day, with respect to any Term Loan the applicable
percentage set forth in Annex I under the appropriate caption.

     “Approved Fund” shall mean any Fund that is administered or managed by (a) a Lender, (b) an
Affiliate of a Lender or (c) an entity or an Affiliate of an entity that administers or manages a
Lender.

     “Approved Member State” shall mean Belgium, France, Germany, Ireland, Italy, Luxembourg, The
Netherlands, Spain, Sweden and the United Kingdom.

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

     “Asset Sale” shall mean (a) any conveyance, sale, lease, sublease, assignment, transfer or
other disposition (including by way of merger or consolidation and including any Sale and Leaseback
Transaction) of any property, excluding (i) sales of Inventory and dispositions of cash and Cash
Equivalents, in each such excluded case, which are in the ordinary course of business, by Holdings
or any of its Subsidiaries, and (ii) sales of Accounts pursuant to the Receivables Purchase
Agreement by any Loan Party or (b) any issuance or sale of any Equity Interests of any Subsidiary
of Holdings; provided that such issuances or sales of Equity Interests to Companies other
than Holdings shall constitute Asset Sales only for purposes of Section 6.06.

     “Asset Swap” shall mean the substantially concurrent purchase and sale or exchange of Related
Business Assets or a combination of Related Business Assets and cash or Cash Equivalents between
any Company and another person; provided that any cash or Cash Equivalents received must be
applied in accordance with Section 2.10(c).

     “Assignment and Assumption” shall mean an assignment and assumption entered into by a Lender
and an Eligible Assignee (with the consent of any party whose consent is required by Section
11.04(b)), and accepted by the Administrative Agent, in substantially the form of Exhibit
B, or any other form approved by the Administrative Agent.

     “Attributable Indebtedness” shall mean, when used with respect to any Sale and Leaseback
Transaction, as at the time of determination, the present value (discounted at the rate implicit in
the lease) of the total obligations of the lessee for rental payments during the remaining term of
the lease included in any such Sale and Leaseback Transaction.

     “Auditor’s Determination” shall have the meaning assigned to such term in Section
7.11(b).

	 	 	 
	
 

	 	
5

 

     “AV Aluminum” shall mean AV Aluminum Inc., a corporation formed under the Canada Business
Corporations Act.

     “AV Metals” shall mean AV Metals, Inc., a corporation formed under the Canada Business
Corporations Act.

     “Available Amount” shall have the meaning assigned to such term in Section 7.12(a).

     “Base Rate” shall mean, for any day, a rate per annum that is equal to the corporate base rate
of interest established by the Administrative Agent from time to time; each change in the Base Rate
shall be effective on the date such change is effective. The corporate base rate is not
necessarily the lowest rate charged by the Administrative Agent to its customers.

     “Board” shall mean the Board of Governors of the Federal Reserve System of the United States.

     “Board of Directors” shall mean, with respect to any person, (i) in the case of any
corporation, the board of directors of such person, (ii) in the case of any limited liability
company, the board of managers of such person, (iii) in the case of any partnership, the Board of
Directors of the general partner of such person and (iv) in any other case, the functional
equivalent of the foregoing.

     “Borrowers” shall have the meaning assigned to such term in the preamble hereto. Unless the
context otherwise requires, and subject to Section 11.25, each reference in this Agreement
to “each Borrower” or “the applicable Borrower” shall be deemed to be a reference to (x) the U.S.
Borrower and/or (y) Canadian Borrower, as the case may be.

     “Borrowing” shall mean Loans to the U.S. Borrower or Canadian Borrower, in each case, of the
same Class and Type, made, converted or continued on the same date and, in the case of Eurocurrency
Loans, as to which a single Interest Period is in effect.

     “Borrowing Request” shall mean a request by a Borrower in accordance with the terms of
Section 2.03 and substantially in the form of Exhibit C, or such other form as
shall be approved by the Administrative Agent.

     “Brazilian Guarantor” shall mean each Subsidiary of Holdings organized in Brazil party hereto
as a Guarantor, and each other Subsidiary of Holdings organized in Brazil that is required to
become a Guarantor pursuant to the terms hereof.

     “Brazilian Security Agreements” shall mean, collectively, any Security Agreements
substantially in the form of Exhibits M-7-1 to 5 among the Brazilian Guarantor and
the Collateral Agent for the benefit of the Secured Parties.

     “Business Day” shall mean any day other than a Saturday, Sunday or other day on which banks in
New York City are authorized or required by law to close; provided, however, that
when used in connection with notices and determinations in connection with, and payments of
principal and interest on or with respect to, a Eurocurrency Loan, the term “Business Day” shall

	 	 	 
	
 

	 	
6

 

also exclude any day on which banks are not open for dealings in dollar deposits in the London
interbank market.

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

     “Canadian Guarantor” shall mean Holdings and each Subsidiary of Holdings organized in Canada
(other than Canadian Borrower) party hereto as a Guarantor, and each other Subsidiary of Holdings
organized in Canada that is required to become a Guarantor pursuant to the terms hereof.

     “Canadian Loan Parties” shall mean Canadian Borrower and the Canadian Guarantors.

     “Canadian Term Loan” shall have the meaning assigned to such term in Section 2.01(b).

     “Canadian Term Loan Commitment” shall mean, with respect to each Lender, the commitment, if
any, of such Lender to make Canadian Term Loans hereunder up to the amount set forth on Schedule I
to the Lender Addendum executed and delivered by such Lender directly under the column entitled
“Canadian Term Loan Commitment” or in an Increase Joinder. The aggregate amount of the Lenders’
Canadian Term Loan Commitments on the Closing Date is $300 million.

     “Canadian Security Agreement” shall mean the Security Agreements substantially in the form of
Exhibits M-2-1 to 6 among the Canadian Loan Parties and the Collateral Agent for
the benefit of the Secured Parties.

     “Capital Assets” shall mean, with respect to any person, all equipment, fixed assets and Real
Property or improvements of such person, or replacements or substitutions therefor or additions
thereto, that, in accordance with GAAP, have been or should be reflected as additions to property,
plant or equipment on the balance sheet of such person.

     “Capital Expenditures” shall mean, for any period, without duplication, all expenditures made
directly or indirectly by Canadian Borrower and its Subsidiaries during such period for Capital
Assets (whether paid in cash or other consideration, financed by the incurrence of Indebtedness or
accrued as a liability), together with Canadian Borrower’s proportionate share of such amounts for
Norf GmbH for such period, but in each case excluding any portion of such expenditures constituting
the Acquisition Consideration for acquisitions of property, plant and equipment in Permitted
Acquisitions or paid for with insurance proceeds.

     “Capital Lease Obligations” of any person shall mean the obligations of such person to pay
rent or other amounts under any lease of (or other arrangement conveying the right to use) real or
personal property, or a combination thereof, which obligations are required to be classified and
accounted for as capital leases on a balance sheet of such person under GAAP, and the amount of
such obligations shall be the capitalized amount thereof determined in accordance with GAAP.

	 	 	 
	
 

	 	
7

 

     “Cash Equivalents” shall mean, as to any person, (a) securities issued or fully guaranteed or
insured by the federal government of the United States, Canada, Switzerland, any Approved Member
State or any agency of the foregoing, (b) marketable direct obligations issued by any state of the
United States or the District of Columbia or any political subdivision or instrumentality thereof
that, at the time of the acquisition, are rated at least “A-2” by S&P or “P-2” by Moody’s, (c)
certificates of deposit, eurocurrency time deposits, overnight bank deposits and bankers’
acceptances of any commercial bank organized under the laws of the United States, any state
thereof, the District of Columbia, any non-U.S. bank, or its branches or agencies (fully protected
against currency fluctuations) that, at the time of acquisition, are rated at least “A-2” by S&P or
“P-2” by Moody’s, (d) commercial paper of an issuer rated at least “A-2” by S&P or “P-2” by
Moody’s, (e) shares of any money market fund that (i) has at least 95% of its assets invested
continuously in the types of investments referred to in clauses (a), (b) and (c) above, (ii) has
net assets, Dollar Equivalent of which exceeds $500,000,000 and (iii) is rated at least “A-2” by
S&P or “P-2” by Moody’s; provided, however, that the maturities of all obligations
of the type specified in clauses (a), (b) and (c) above shall not exceed 365 days;
provided, further, that, to the extent any cash is generated through operations in
a jurisdiction outside of the United States, Canada, Switzerland or an Approved Member State, such
cash may be retained and invested in obligations of the type described in clauses (a), (b) and (c)
to the extent that such obligations have a credit rating equal to the sovereign rating of such
jurisdiction.

     “Cash Interest Expense” shall mean, for any period, Consolidated Interest Expense for such
period, less the sum of (a) interest on any debt paid by the increase in the principal amount of
such debt including by issuance of additional debt of such kind, (b) items described in clause (c)
of the definition of “Consolidated Interest Expense” and (c) gross interest income of Canadian
Borrower and its Subsidiaries for such period.

     “Casualty Event” shall mean any involuntary loss of title, any involuntary loss of, damage to
or any destruction of, or any expropriation, condemnation or other taking (including by any
Governmental Authority) of, any property of Holdings or any of its Subsidiaries. “Casualty Event”
shall include but not be limited to any taking of all or any part of any Real Property of any
person or any part thereof, in or by expropriation, condemnation or other eminent domain
proceedings pursuant to any Requirement of Law, or by reason of the temporary requisition of the
use or occupancy of all or any part of any Real Property of any person or any part thereof by any
Governmental Authority, civil or military, or any settlement in lieu thereof.

     “CERCLA” shall mean the Comprehensive Environmental Response, Compensation, and Liability Act
of 1980, as amended, 42 U.S.C. § 9601 et seq. and all implementing regulations.

     A “Change in Control” shall be deemed to have occurred if:

     (a) Acquiror at any time ceases to be the beneficial owner (as defined in Rules 13d-3
and 13d-5 under the Exchange Act) of at least 51% of the Equity Interests of Holdings,

     (b) Holdings at any time ceases to be the beneficial owner (as defined in Rules 13d-3
and 13d-5 under the Exchange Act) and the direct record owner of 100% of

	 	 	 
	
 

	 	
8

 

the Equity Interests of Canadian Borrower; provided that a Permitted Holdings
Amalgamation shall not constitute a Change of Control under this clause (b),

     (c) Canadian Borrower at any time ceases to be the beneficial owner (as defined in
Rules 13d-3 and 13d-5 under the Exchange Act) and the direct or indirect owner of 100% of
the Equity Interests of each of the U.S. Borrower and Novelis Deutschland GmbH;

     (d) at any time a change of control occurs under any Material Indebtedness;

     (e) any “person” or “group” (as such terms are used in Sections 13(d) and 14(d) of the
Exchange Act) other than the Specified Holders is or becomes the beneficial owner (as
defined in Rules 13d-3 and 13d-5 under the Exchange Act, except that for purposes of this
clause (except as set forth below) such person or group shall be deemed to have “beneficial
ownership” of all securities that such person or group has the right to acquire, whether
such right is exercisable immediately or only after the passage of time) of Voting Stock of
Acquiror representing 50% or more of the voting power of the total outstanding Voting Stock
of Acquiror; or

     (f) during any period of two consecutive years, individuals who at the beginning of
such period constituted the Board of Directors of Acquiror (together with any new directors
whose election to such Board of Directors or whose nomination for election was approved by
the Specified Holders or by a vote of at least a majority of the members of the Board of
Directors of Acquiror, which members comprising such majority are then still in office and
were either directors at the beginning of such period or whose election or nomination for
election was previously so approved) cease for any reason to constitute a majority of the
Board of Directors of Acquiror.

     For purposes of this definition, a person shall not be deemed to have beneficial ownership of
Equity Interests subject to a stock purchase agreement, merger agreement or similar agreement until
the consummation of the transactions contemplated by such agreement.

     “Change in Law” shall mean the occurrence, after the date of this Agreement, of any of the
following: (a) the adoption or taking into effect of any law, treaty, order, policy, rule or
regulation, (b) any change in any law, treaty, order, policy, rule or regulation or in the
administration, interpretation or application thereof by any Governmental Authority or (c) the
making or issuance of any request, guideline or directive (whether or not having the force of law)
by any Governmental Authority.

     “Charges” shall have the meaning assigned to such term in Section 11.14.

     “Chattel Paper” shall mean all “chattel paper,” as such term is defined in the UCC as in
effect on the date hereof in the State of New York, in which any Person now or hereafter has
rights.

     “Chief Executive Office” shall mean, with respect to any Person, the location from which such
Person manages the main part of its business operations or other affairs.

	 	 	 
	
 

	 	
9

 

     “Class,” when used in reference to any Loan or Borrowing, refers to whether such Loan, or the
Loans comprising such Borrowing, are U.S. Term Loans or Canadian Term Loans and, when used in
reference to any Commitment, refers to whether such Commitment is a U.S. Term Loan Commitment or a
Canadian Term Loan Commitment, in each case, under this Agreement as originally in effect or
pursuant to Section 2.23, of which such Loan, Borrowing or Commitment shall be a part.

     “Closing Date” shall mean the date of the initial Credit Extension hereunder.

     “CNI Basket” shall have the meaning assigned to such term in Section 6.08(d).

     “Code” shall mean the Internal Revenue Code of 1986, as amended, and the Treasury Regulations
promulgated thereunder.

     “Collateral” shall mean, collectively, all of the Revolving Credit Priority Collateral and the
Term Loan Priority Collateral.

     “Collateral Agent” shall have the meaning assigned to such term in the preamble hereto and
includes each other person appointed as the successor pursuant to ARTICLE X.

     “Commerzbank Cash Pooling Agreement” shall mean an Agreement regarding an Automatic Cash
Management System entered into between Novelis AG, the “Companies” (as defined therein) and
Commerzbank Aktiengesellschaft, Berlin dated 15 January 2007, together with all ancillary
documentation thereto.

     “Commitment” shall mean, with respect to any Lender, such Lender’s U.S. Term Loan Commitment
and/or Canadian Term Loan Commitment, including any Incremental Term Loan Commitment pursuant to
Section 2.23.

     “Companies” shall mean Holdings and its Subsidiaries; and “Company” shall mean any one of
them.

     “Compensation Plan” shall mean any program, plan or similar arrangement (other than employment
contracts for a single individual) relating generally to compensation, pension, employment or
similar arrangements with respect to which any Company, any Affiliate of any Company or any ERISA
Affiliate of any of them has any obligation or liability, contingent or otherwise, under any
Requirements of Law other than those of the United States.

     “Compliance Certificate” shall mean a certificate of a Financial Officer substantially in the
form of Exhibit D.

     “Confidential Information Memorandum” shall mean that certain confidential information
memorandum of Novelis Inc., dated June 2007.

     “Consolidated Adjusted EBITDA” shall mean, for any period, Consolidated EBITDA for such period
plus, to the extent not otherwise included in Consolidated EBITDA:

	 	 	 
	
 

	 	
10

 

     (a) 100% of the net income of each Joint Venture Subsidiary and Logan for such period minus
the amount of any dividends or distributions paid to the holder of any interest (other than a
Company) in such Joint Venture Subsidiary or Logan during such period; and

     (b) the Canadian Borrower’s proportionate share of EBITDA of Norf GmbH for such period.

     “Consolidated Amortization Expense” shall mean, for any period, the amortization expense of
Canadian Borrower and its Subsidiaries for such period, determined on a consolidated basis in
accordance with GAAP.

     “Consolidated Current Assets” shall mean, as at any date of determination, the total assets of
Canadian Borrower and its Subsidiaries which may properly be classified as current assets on a
consolidated balance sheet of Canadian Borrower and its Subsidiaries in accordance with GAAP,
excluding cash and Cash Equivalents.

     “Consolidated Current Liabilities” shall mean, as at any date of determination, the total
liabilities of Canadian Borrower and its Subsidiaries which may properly be classified as current
liabilities (other than the current portion of any Loans) on a consolidated balance sheet of
Canadian Borrower and its Subsidiaries in accordance with GAAP, but excluding (a) the current
portion of any Funded Debt of Canadian Borrower and its Subsidiaries and (b) without duplication of
clause (a) above, all Indebtedness consisting of Revolving Credit Loans to the extent otherwise
included therein.

     “Consolidated Depreciation Expense” shall mean, for any period, the depreciation expense of
Canadian Borrower and its Subsidiaries for such period, determined on a consolidated basis in
accordance with GAAP.

     “Consolidated EBITDA” shall mean, for any period, Consolidated Net Income for such period,
adjusted by:

     (x) adding thereto, in each case only to the extent (and in the same proportion)
deducted in determining such Consolidated Net Income and without duplication:

     (a) Consolidated Interest Expense for such period,

     (b) Consolidated Amortization Expense for such period,

     (c) Consolidated Depreciation Expense for such period,

     (d) Consolidated Tax Expense for such period,

     (e) non-recurring cash expenses and charges relating to the Hindalco Acquisition and
the Refinancing,

     (f) restructuring charges in an amount not to exceed $15 million in the aggregate
during the term hereof; and

	 	 	 
	
 

	 	
11

 

     (g) the aggregate amount of all other non-cash charges reducing Consolidated Net Income
(excluding any non-cash charge that results in an accrual of a reserve for cash charges in
any future period) for such period;

     (y) subtracting therefrom, the aggregate amount of all non-cash items increasing
Consolidated Net Income (other than the accrual of revenue or recording of receivables in the
ordinary course of business) for such period; and

     (z) excluding therefrom,

     (a) any gain (or loss), together with any related provisions for taxes on any such gain
(or the tax effect of any such loss), realized during such period by Canadian Borrower or
any of its Subsidiaries upon any Asset Sale (other than any dispositions in the ordinary
course of business) by Canadian Borrower or any of its Subsidiaries,

     (b) gains and losses due solely to fluctuations in currency values and the related tax
effects determined in accordance with GAAP for such period,

     (c) earnings or losses resulting from any reappraisal, revaluation or write-up or
write-down of assets,

     (d) any one-time increase or decrease to net income that is required to be recorded
because of the adoption of new accounting policies, practices or standards required by GAAP,

     (e) unrealized gains and losses with respect to Hedging Obligations for such period,
and

     (f) any extraordinary gain (or extraordinary loss), together with any related provision
for taxes on any such gain (or the tax effect of any such loss), recorded or recognized by
Canadian Borrower or any of its Subsidiaries during such period;

     Other than for purposes of calculating Excess Cash Flow, Consolidated EBITDA shall be
calculated on a Pro Forma Basis to give effect to any Permitted Acquisition and Asset Sales (other
than any dispositions in the ordinary course of business, dispositions where the value of the
assets disposed of is less than $15 million and Permitted Acquisitions where the amount of the
Acquisition Consideration plus any Equity Interests constituting all or a portion of the purchase
price is less than $15 million) consummated at any time on or after the first day of the Test
Period thereof as if each such Permitted Acquisition had been effected on the first day of such
period and as if each such Asset Sale had been consummated on the day prior to the first day of
such period.

     “Consolidated Indebtedness” shall mean, as at any date of determination, the aggregate amount
of all Indebtedness of Canadian Borrower and its Subsidiaries (other than (i) Indebtedness
specified in clauses (g) and (h) (unless the lease giving rise to such Attributable Indebtedness is
a Capital Lease) of the definition thereof, (ii) bankers’ acceptances, letters of credit and
similar credit arrangements with respect to which no reimbursement obligation has arisen, (iii)
letters of credit permitted to be incurred under Section 6.01(p) and (iv) from and after

	 	 	 
	
 

	 	
12

 

the Permitted Holdings Amalgamation, the Subordinated Debt Loan), determined on a consolidated
basis in accordance with GAAP.

     “Consolidated Interest Expense” shall mean, for any period, the total consolidated interest
expense of Canadian Borrower and its Subsidiaries for such period determined on a consolidated
basis in accordance with GAAP plus, without duplication:

     (a) imputed interest on Capital Lease Obligations and Attributable Indebtedness of
Canadian Borrower and its Subsidiaries for such period;

     (b) commissions, discounts and other fees and charges owed by Canadian Borrower or any
of its Subsidiaries with respect to letters of credit securing financial obligations,
bankers’ acceptance financing and receivables financings for such period;

     (c) amortization of debt issuance costs, debt discount or premium and other financing
fees and expenses incurred by Canadian Borrower or any of its Subsidiaries for such period;

     (d) all interest paid or payable with respect to discontinued operations of Canadian
Borrower or any of its Subsidiaries for such period; and

     (e) the interest portion of any deferred payment obligations of Canadian Borrower or
any of its Subsidiaries for such period.

     Other than for purposes of calculating Excess Cash Flow, Consolidated Interest Expense shall
be calculated on a Pro Forma Basis to give effect to any Indebtedness incurred, assumed or
permanently repaid or extinguished during the relevant Test Period in connection with any Permitted
Acquisitions and Asset Sales (other than any dispositions in the ordinary course of business,
dispositions where the value of the assets disposed of is less than $15 million and Permitted
Acquisitions where the amount of the Acquisition Consideration plus any Equity Interests
constituting all or a portion of the purchase price is less than $15 million) as if such
incurrence, assumption, repayment or extinguishing had been effected on the first day of such
period.

     “Consolidated Net Income” shall mean, for any period, the consolidated net income (or loss) of
Canadian Borrower and its Subsidiaries determined on a consolidated basis in accordance with GAAP;
provided, however, that:

     (a) the net income (or loss) of any person in which any person other than Canadian
Borrower and its Subsidiaries has an ownership interest (which interest does not cause the
net income of such other person to be consolidated into the net income of Canadian Borrower
and its Subsidiaries) shall be excluded, except to the extent actually received by Canadian
Borrower or any of its Subsidiaries during such period; and

     (b) the net income of any Subsidiary of Canadian Borrower other than a Loan Party that
is subject to a prohibition on the payment of dividends or similar distributions by such
Subsidiary shall be excluded to the extent of such prohibition.

	 	 	 
	
 

	 	
13

 

     For purposes of this definition of “Consolidated Net Income,” Consolidated Net Income shall be
reduced (to the extent not already reduced thereby) by the amount of any payments to or on behalf
of Holdings made pursuant to Section 6.08(c).

     “Consolidated Senior Secured Indebtedness” shall mean, as at any date of determination, the
aggregate amount of all Consolidated Indebtedness of the Companies that is secured by a Lien on the
assets of any of such persons.

     “Consolidated Tax Expense” shall mean, for any period, the tax expense of Canadian Borrower
and its Subsidiaries, for such period, determined on a consolidated basis in accordance with GAAP.

     “Contingent Obligation” shall mean, as to any person, any obligation, agreement, understanding
or arrangement of such person guaranteeing or intended to guarantee any Indebtedness, leases,
dividends or other obligations (“primary obligations”) of any other person (the “primary obligor”)
in any manner, whether directly or indirectly, including any obligation of such person, whether or
not contingent, (a) to purchase any such primary obligation or any property constituting direct or
indirect security therefor; (b) to advance or supply funds (i) for the purchase or payment of any
such primary obligation or (ii) to maintain working capital or equity capital of the primary
obligor or otherwise to maintain the net worth or solvency of the primary obligor; (c) to purchase
property, securities or services primarily for the purpose of assuring the owner of any such
primary obligation of the ability of the primary obligor to make payment of such primary
obligation; (d) with respect to bankers’ acceptances, letters of credit and similar credit
arrangements, until a reimbursement obligation arises (which reimbursement obligation shall
constitute Indebtedness); or (e) otherwise to assure or hold harmless the holder of such primary
obligation against loss in respect thereof; provided, however, that the term
“Contingent Obligation” shall not include endorsements of instruments for deposit or collection in
the ordinary course of business or any product warranties. The amount of any Contingent Obligation
shall be deemed to be an amount equal to the stated or determinable amount of the primary
obligation in respect of which such Contingent Obligation is made (or, if less, the maximum amount
of such primary obligation for which such person may be liable, whether singly or jointly, pursuant
to the terms of the instrument evidencing such Contingent Obligation) or, if not stated or
determinable, the maximum reasonably anticipated liability in respect thereof (assuming such person
is required to perform thereunder) as determined by such person in good faith.

     “Contribution, Intercompany, Contracting and Offset Agreement” shall mean that certain
Contribution, Intercompany, Contracting and Offset Agreement dated as of the date hereof by and
among the Loan Parties (other than certain Foreign Subsidiaries), Collateral Agent and
Administrative Agent.

     “Contribution Notice” shall mean a contribution notice issued by the Pensions Regulator under
Section 38 or Section 47 of the Pensions Act 2004.

     “Control” shall mean the possession, directly or indirectly, of the power to direct or cause
the direction of the management or policies of a person, whether through the ownership of

	 	 	 
	
 

	 	
14

 

voting securities, by contract or otherwise, and the terms “Controlling” and “Controlled”
shall have meanings correlative thereto.

     “Control Agreement” shall mean, with respect to a Deposit Account, Securities Account, or
Commodity Account (each as defined in the UCC as in effect on the date hereof in the State of New
York), (i) located in the United States, an agreement in form and substance reasonably satisfactory
to the Collateral Agent establishing the Collateral Agent’s “control” (within the meaning of the
UCC) in such account, or (ii) located in other jurisdictions, agreements with regard to such
accounts establishing and perfecting the First Priority Lien of the Collateral Agent in such
accounts), and otherwise in form and substance reasonably satisfactory to the Collateral Agent.

     “Credit Extension” shall mean the making of a Loan by a Lender.

     “Debt Issuance” shall mean the incurrence by Holdings or any of its Subsidiaries of any
Indebtedness after the Closing Date (other than as permitted by Section 6.01).

     “Debt Service” shall mean, for any period, Cash Interest Expense for such period plus
scheduled principal amortization of all Indebtedness paid in such period.

     “Default” shall mean an Event of Default or an event, occurrence or condition which is, or
upon notice, lapse of time or both would constitute, an Event of Default.

     “Default Rate” shall have the meaning assigned to such term in Section 2.06(c).

     “Delegate” shall mean any delegate, agent, attorney, trustee or co-trustee appointed by the
Collateral Agent or any Receiver.

     “Disqualified Capital Stock” shall mean any Equity Interest which, by its terms (or by the
terms of any security into which it is convertible or for which it is exchangeable), or upon the
happening of any event, (a) matures (excluding any maturity as the result of an optional redemption
by the issuer thereof) or is mandatorily redeemable, pursuant to a sinking fund obligation or
otherwise, or is redeemable at the option of the holder thereof, in whole or in part, on or prior
to 180 days after the Final Maturity Date, (b) is convertible into or exchangeable (unless at the
sole option of the issuer thereof) for (i) debt securities or (ii) any Equity Interests referred to
in (a) above, in each case at any time on or prior to 180 days after the Final Maturity Date, or
(c) contains any mandatory repurchase obligation which may come into effect prior to 180 days after
the Final Maturity Date; provided, however, that any Equity Interests that would
not constitute Disqualified Capital Stock but for provisions thereof giving holders thereof (or the
holders of any security into or for which such Equity Interests is convertible, exchangeable or
exercisable) the right to require the issuer thereof to redeem such Equity Interests upon the
occurrence of a change in control or an asset sale occurring prior to 180 days after the Final
Maturity Date shall not constitute Disqualified Capital Stock if such Equity Interests provide that
the issuer thereof will not redeem any such Equity Interests pursuant to such provisions prior to
the repayment in full of the Obligations.

     “Distribution” shall mean, collectively, with respect to each Loan Party, all dividends, cash,
options, warrants, rights, instruments, distributions, returns of capital or principal, income,

	 	 	 
	
 

	 	
15

 

interest, profits and other property, interests (debt or equity) or proceeds, including as a
result of a split, revision, reclassification or other like change of the Pledged Securities, from
time to time received, receivable or otherwise distributed to such Loan Party in respect of or in
exchange for any or all of the Pledged Securities or Pledged Intercompany Notes.

     “Dividend” with respect to any person shall mean that such person has declared or paid a
dividend or returned any equity capital to the holders of its Equity Interests or authorized or
made any other distribution, payment or delivery of property (other than Qualified Capital Stock of
such person) or cash to the holders of its Equity Interests as such, or redeemed, retired,
purchased or otherwise acquired, directly or indirectly, for consideration any of its Equity
Interests outstanding (or any options or warrants issued by such person with respect to its Equity
Interests), or set aside any funds for any of the foregoing purposes, or shall have permitted any
of its Subsidiaries to purchase or otherwise acquire for consideration any of the Equity Interests
of such person outstanding (or any options or warrants issued by such person with respect to its
Equity Interests). Without limiting the foregoing, “Dividends” with respect to any person shall
also include all payments made or required to be made by such person with respect to any stock
appreciation rights, plans, equity incentive or achievement plans or any similar plans or setting
aside of any funds for the foregoing purposes.

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

     “Dollar Equivalent” shall mean, as to any amount denominated in any currency other than
Dollars as of any date of determination, the amount of Dollars that would be required to purchase
the amount of such currency based upon the Spot Selling Rate as of such date, and as to any amount
denominated in Dollars, such amount in Dollars.

     “Dollars” or “dollars” or “$” shall mean lawful money of the United States.

     “EBITDA of Norf GmbH” shall mean, with respect to any period, the net income of Norf GmbH
plus to the extent deducted in determining net income, interest expense, depreciation and
amortization expense, tax expense and the aggregate amount of all other non-cash charges reducing
such net income (excluding any non-cash charge that results in an accrual of a reserve for cash
charges in any future period) for such period minus the aggregate amount of all non-cash
items increasing such net income (other than the accrual of revenue or recording of receivables in
the ordinary course of business) for such period; provided that in calculating such EBITDA
of Norf GmbH the following shall be excluded:

     (i) any gain (or loss), together with any related provisions for taxes on any such gain (or
the tax effect of any such loss), realized during such period by Norf GmbH or any of its
Subsidiaries upon an asset sale (other than any dispositions in the ordinary course of business) by
Norf GmbH or any of its Subsidiaries;

     (ii) gains and losses due solely to fluctuations in currency values and the related tax
effects determined in accordance with GAAP for such period;

     (iii) earnings or losses resulting from any reappraisal, revaluation or write-up or write-down
of assets;

	 	 	 
	
 

	 	
16

 

     (iv) any one-time increase or decrease to net income that is required to be recorded because
of the adoption of new accounting policies, practices or standards required by GAAP;

     (v) unrealized gains and losses with respect to Hedging Obligations for such period; and

     (vi) any extraordinary gain (or extraordinary loss), together with any related provision for
taxes on any such gain (or the tax effect of any such loss), recorded or recognized by Norf GmbH or
any of its Subsidiaries during such period.

     “Eligible Assignee” shall mean (a) any Lender, (b) an Affiliate of any Lender, (c) an Approved
Fund of a Lender and (d) any other person approved by the Administrative Agent and Administrative
Borrower (each such approval not to be unreasonably withheld or delayed); provided that (x) no
approval of Administrative Borrower shall be required during the continuance of a Default or prior
to the earlier of (i) three months after the Closing Date or (ii) the completion of the primary
syndication of the Commitments and Loans (as determined by the Arrangers), (y) “Eligible Assignee”
shall not include Holdings or any of its Affiliates or Subsidiaries or any natural person and (z)
each assignee Lender shall be subject to each other applicable requirement regarding Lenders
hereunder.

     “Embargoed Person” shall have the meaning assigned to such term in Section 6.21.

     “Environment” shall mean the natural environment, including air (indoor or outdoor), surface
water and groundwater (including potable water, navigable water and wetlands), the land surface or
subsurface strata, natural resources, the workplace or as otherwise defined in any Environmental
Law.

     “Environmental Claim” shall mean any claim, notice, demand, order, action, suit, proceeding or
other communication alleging liability for or obligation with respect to any investigation,
remediation, removal, cleanup, response, corrective action, damages to natural resources, personal
injury, property damage, fines, penalties or other costs resulting from, related to or arising out
of (i) the presence, Release or threatened Release in or into the Environment of Hazardous Material
at any location or (ii) any violation or alleged violation of any Environmental Law, and shall
include any claim seeking damages, contribution, indemnification, cost recovery, compensation or
injunctive relief resulting from, related to or arising out of the presence, Release or threatened
Release of Hazardous Material or alleged injury or threat of injury to health, safety or the
Environment.

     “Environmental Law” shall mean any and all treaties, laws, statutes, ordinances, regulations,
rules, decrees, orders, judgments, consent orders, consent decrees, code or other legally binding
requirements, and the common law, relating to protection of public health or the Environment, the
Release or threatened Release of Hazardous Material, natural resources or natural resource damages,
or occupational safety or health, and any and all Environmental Permits.

     “Environmental Permit” shall mean any permit, license, approval, registration, notification,
exemption, consent or other authorization required by or from a Governmental Authority under
Environmental Law.

	 	 	 
	
 

	 	
17

 

     “Equipment” shall mean “equipment,” as such term is defined in the UCC as in effect on the
date hereof in the State of New York, in which such Person now or hereafter has rights.

     “Equity Interest” shall mean, with respect to any person, any and all shares, interests,
participations or other equivalents, including membership interests (however designated, whether
voting or nonvoting), of equity of such person, including, if such person is a partnership,
partnership interests (whether general or limited) and any other interest or participation that
confers on a person the right to receive a share of the profits and losses of, or distributions of
property of, such partnership, whether outstanding on the date hereof or issued after the Closing
Date, but excluding debt securities convertible or exchangeable into such equity.

     “Equity Issuance” shall mean, without duplication, (i) any issuance or sale by Holdings after
the Closing Date of any Equity Interests (other than Preferred Stock) in Holdings (including any
Equity Interests (other than Preferred Stock) issued upon exercise of any warrant or option) or any
warrants or options to purchase Equity Interests (other than Preferred Stock) or (ii) any
contribution to the capital of Holdings.

     “ERISA” shall mean the Employee Retirement Income Security Act of 1974, as the same may be
amended from time to time.

     “ERISA Affiliate” shall mean, with respect to any person, any trade or business (whether or
not incorporated) that, together with such person, is treated as a single employer under Section
414 of the Code.

     “ERISA Event” shall mean (a) any “reportable event,” as defined in Section 4043 of ERISA or
the regulations issued thereunder, with respect to a Plan (other than an event for which the thirty
(30) day notice period is waived by regulation); (b) the existence with respect to any Plan of an
“accumulated funding deficiency” (as defined in Section 412 of the Code or Section 302 of ERISA),
whether or not waived; (c) the failure to make by its due date a required installment under Section
412(m) of the Code with respect to any Plan or the failure to make any required contribution to a
Multiemployer Plan; (d) the filing pursuant to Section 412(d) of the Code or Section 303(d) of
ERISA of an application for a waiver of the minimum funding standard with respect to any Plan; (e)
the incurrence by any Company or any of its ERISA Affiliates of any liability under Title IV of
ERISA with respect to the termination of any Plan; (f) the receipt by any Company or any of its
ERISA Affiliates from the PBGC or a plan administrator of any notice relating to the intention to
terminate any Plan or Plans or to appoint a trustee to administer any Plan, or the occurrence of
any event or condition which could reasonably be expected to constitute grounds under ERISA for the
termination of, or the appointment of a trustee to administer, any Plan; (g) the incurrence by any
Company or any of its ERISA Affiliates of any liability with respect to the withdrawal from any
Plan or Multiemployer Plan; (h) the receipt by any Company or its ERISA Affiliates of any notice,
concerning the imposition of material Withdrawal Liability or a determination that a Multiemployer
Plan is, or is expected to be, insolvent or in reorganization, within the meaning of Title IV of
ERISA; (i) the “substantial cessation of operations” within the meaning of Section 4062(e) of ERISA
with respect to a Plan; (j) the making of any amendment to any Plan which could result in the
imposition of a lien or the posting of a bond or other security; and (k) the occurrence of a
nonexempt prohibited transaction (within the meaning of Section 4975 of the Code or

	 	 	 
	 
	 	18

 

 

Section 406 of ERISA) which could reasonably be expected to result in a Material Adverse Effect.

     “Eurocurrency Borrowing” shall mean a Borrowing comprised of Eurocurrency Loans.

     “Eurocurrency Loan” shall mean any Loan bearing interest at a rate determined by reference to
the Adjusted LIBOR Rate in accordance with the provisions of ARTICLE II.

     “Eurofoil” shall mean Eurofoil Inc. (USA), a New York corporation.

     “European Cash Pooling Arrangements” shall mean the cash pooling arrangements operated by the
Swiss Borrower and certain of the other Companies pursuant to the Novelis AG Cash Pooling Agreement
and the Commerzbank Cash Pooling Agreement.

     “Event of Default” shall have the meaning assigned to such term in Section 8.01.

     “Excess Amount” shall have the meaning assigned to such term in Section 2.10.

     “Excess Availability” shall mean “Excess Availability” as defined in the Revolving Credit
Agreement as in effect on the Closing Date.

     “Excess Cash Flow” shall mean, for any Excess Cash Flow Period, Consolidated Adjusted EBITDA
for such Excess Cash Flow Period, minus, without duplication:

               (a) Debt Service for such Excess Cash Flow Period;

               (b) (i) any voluntary prepayments of Term Loans, (ii) any voluntary prepayments of
term loans
of NKL permitted under Section 6.01(m), (iii) any voluntary repayments of Revolving Credit
Loans to the extent accompanied by a simultaneous permanent reduction in an equal amount of the
Revolving Credit Commitments (and excluding any such reduction to the extent relating to the
entering into of a replacement Revolving Credit Agreement) and (iv) any voluntary repayments of
revolving Indebtedness of NKL permitted under Section 6.01(m) to the extent accompanied by
a simultaneous permanent reduction in an equal amount of the commitments in respect of such
Indebtedness (and excluding any such reduction to the extent relating to the entering into of
replacement revolving Indebtedness of NKL), in each case, so long as such amounts are not already
reflected in Debt Service, during such Excess Cash Flow Period;

               (c) Capital Expenditures during such Excess Cash Flow Period (excluding Capital Expenditures
made in such Excess Cash Flow Period where a certificate in the form contemplated by the following
clause (d) was previously delivered) that are paid in cash;

               (d) Capital Expenditures that Canadian Borrower or any of its Subsidiaries shall, during such
Excess Cash Flow Period, become obligated to make but that are not made during such Excess Cash
Flow Period; provided that Canadian Borrower shall deliver a certificate to the
Administrative Agent not later than 90 days after the end of such Excess Cash

	 	 	 
	 
	 	19

 

 

Flow Period, signed by a Responsible Officer of Canadian Borrower and certifying that such
Capital Expenditures will be made in the following Excess Cash Flow Period;

               (e) the aggregate amount of Investments made in cash during such period pursuant to
Sections 6.04(e), (h), (l), (m) and (r);

               (f) (i) taxes of Canadian Borrower and its Subsidiaries that were paid in cash during such
Excess Cash Flow Period (excluding taxes paid in such Excess Cash Flow period where a certificate
contemplated by the following clause (ii) was previously delivered) and (ii) taxes of Canadian
Borrower and its Subsidiaries that will be paid within six months after the end of such Excess Cash
Flow Period and for which reserves have been established; provided that Borrower shall
deliver a certificate to the Administrative Agent not later than 90 days after the end of such
Excess Cash Flow Period, signed by a Responsible Officer of Borrower and certifying that such taxes
will be paid within such six month period;

               (g) the absolute value of the difference, if negative, of the amount of Net Working Capital at
the end of the prior Excess Cash Flow Period (or, in the case of the Excess Cash Flow Period for
the first complete fiscal year of Canadian Borrower commencing after the Closing Date, at the first
day of such Excess Cash Flow Period) over the amount of Net Working Capital at the end of such
Excess Cash Flow Period;

               (h) to the extent added to determine Consolidated EBITDA and paid in cash during such Excess
Cash Flow Period, restructuring charges in an amount not to exceed $15 million during the term
hereof;

               (i) losses excluded from the calculation of Consolidated EBITDA by operation of clauses (z)(a)
and (z)(f) of the definition thereof that are paid or realized in cash during such Excess Cash Flow
Period;

               (j) Dividends paid in cash to Holdings during such Excess Cash Flow period in accordance with
Section 6.08(c); and

               (k) to the extent added to determine Consolidated EBITDA, all items that did not result from a
cash payment to Canadian Borrower or any of its Subsidiaries on a consolidated basis during such
Excess Cash Flow Period;

provided that any amount deducted pursuant of any of the foregoing clauses that will be
paid after the close of such Excess Cash Flow Period shall not be deducted again in a subsequent
Excess Cash Flow Period; plus, without duplication:

               (i) the difference, if positive, of the amount of Net Working Capital at the end of
the
prior Excess Cash Flow Period (or, in the case of the Excess Cash Flow Period for the first
complete fiscal year of Canadian Borrower commencing after the Closing Date, at the first
day of such Excess Cash Flow Period) over the amount of Net Working Capital at the end of
such Excess Cash Flow Period;

               (ii) (1) all net cash proceeds received during such Excess Cash Flow Period of
(x) any
equity issuance by, or capital contribution to, Holdings, Canadian

	 	 	 
	 
	 	20

 

 

Borrower or any other Subsidiary of Canadian Borrower to, or made by, persons other
than Companies and (y) any Indebtedness (other than Revolving Credit Loans), in each case,
to the extent (directly or indirectly) used to finance (A) Investments made pursuant to
Sections 6.04(e), (h), (l), (m) and (r), (B)
voluntary prepayments of term loans of NKL (to the extent such voluntary repayment of term
loans of NKL is deducted from Excess Cash Flow pursuant to clause (b)(ii) above), (C)
voluntary repayments of Revolving Credit Loans (to the extent such voluntary repayment of
Revolving Credit Loans is deducted from Excess Cash Flow pursuant to clause (b)(iii) above)
or (D) voluntary repayments of revolving Indebtedness of NKL (to the extent such voluntary
repayment of revolving Indebtedness of NKL is deducted from Excess Cash Flow pursuant to
clause (b)(iv) above); (2) all net cash proceeds received during such Excess Cash Flow
Period of (x) any equity issuance by, or capital contribution to, Holdings, Canadian
Borrower or any other Subsidiary of Canadian Borrower to, or made by, persons other than
Companies and (y) any Indebtedness (other than Revolving Credit Loans), in each case, to the
extent used to finance any Capital Expenditure; and (3) all Net Cash Proceeds of Asset Sales
utilized to make Capital Expenditures in such Excess Cash Flow Period as permitted under
Section 2.10(c);

               (iii) to the extent any permitted Capital Expenditures referred to in clause
(d) above
do not occur in the Excess Cash Flow Period specified in the certificate of Borrower
provided pursuant to clause (d) above, such amounts of Capital Expenditures that were not so
made in the Excess Cash Flow Period specified in such certificates;

               (iv) to the extent any tax payments referred to in clause (f)(ii) above do not
occur in
the Excess Cash Flow Period specified in the certificate of Canadian Borrower provided
pursuant to clause (f)(ii) above, such amounts of tax payments that were not so made in the
Excess Cash Flow Period specified in such certificates;

               (v) to the extent not reflected in Consolidated EBITDA for such Excess Cash Flow
Period, any return on or in respect of Investments received in cash during such period,
which Investments were made pursuant to Sections 6.04(e), (h), (l),
(m) and (r) (excluding any amounts of such Investments financed with the
proceeds of (x) equity issuances by, or capital contributions to, Holdings, Canadian
Borrower or any other Subsidiary of Canadian Borrower to, or made by, persons other than
Companies or (y) Indebtedness (other than Revolving Credit Loans));

               (vi) if deducted in the computation of Consolidated EBITDA, interest income;

               (vii) income and gains excluded from the calculation of Consolidated EBITDA in any
period by operation of clauses (z)(a) or (z)(f) of the definition thereof that are realized
in cash during such Excess Cash Flow Period (other than pursuant to a sale under Section
6.06(k) to the extent that the proceeds of such sale are reinvested in accordance with
Section 6.04(k) during such Excess Cash Flow Period); and

	 	 	 
	 
	 	21

 

 

               (viii) to the extent subtracted in determining Consolidated EBITDA, all items that
did
not result from a cash payment by Borrower or any of its Subsidiaries on a consolidated
basis during such Excess Cash Flow Period.

     “Excess Cash Flow Period” shall mean each fiscal year of Borrower, beginning with the first
complete fiscal year of Borrower commencing after the Closing Date.

     “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended.

     “Excluded Collateral Subsidiary” shall mean, at any date of determination, any Subsidiary
designated as such in writing by Administrative Borrower to the Administrative Agent that, together
with all other Subsidiaries constituting Excluded Collateral Subsidiaries (i) contributed 1.0% or
less of Consolidated EBITDA for the period of four fiscal quarters most recently ended for which
financial statements have been or are required to have been delivered pursuant to Section
5.01(a) or 5.01(b) prior to the date of determination, (ii) had consolidated assets
representing 1.0% or less of the consolidated total assets of Canadian Borrower and its
Subsidiaries on the last day of the most recent fiscal quarter ended for which financial statements
have been or are required to have been delivered pursuant to Section 5.01(a) or
5.01(b) prior to the date of determination, and (iii) is not a Loan Party. The Excluded
Collateral Subsidiaries as of the Closing Date are listed on Schedule 1.01(c).

     “Excluded Subsidiaries” shall mean Subsidiaries of Holdings that (i) are not Loan Parties and
(ii) are not organized in a Principal Jurisdiction.

     “Excluded Taxes” shall mean, with respect to the Agents, any Lender or any other recipient of
any payment to be made by or on account of any obligation of any Borrower hereunder, (a) taxes
imposed on or measured by its overall net income (however denominated), franchise taxes imposed on
it (in lieu of net income taxes) and branch profits taxes imposed on it, by a jurisdiction (or any
political subdivision thereof) as a result of the recipient being organized or having its principal
office or, in the case of any Lender, its applicable lending office in such jurisdiction and (b) in
the case of a Foreign Lender, any U.S. federal withholding tax that (i) is imposed on amounts
payable to such Foreign Lender at the time such Foreign Lender becomes a party hereto (or
designates a new lending office), except (x) to the extent that such Foreign Lender (or its
assignor, if any) was entitled, at the time of designation of a new lending office (or assignment),
to receive additional amounts from any Borrower with respect to such withholding tax pursuant to
Section 2.15(a) or (y) if such Foreign Lender designates a new foreign lending office or is
an assignee pursuant to a request by any Borrower under Section 2.16; provided that
this subclause (b)(i) shall not apply to any Tax imposed on a Lender in connection with an interest
or participation in any Loan or other obligation that such Lender was required to acquire pursuant
to Section 2.14(d), or (ii) is attributable to such Foreign Lender’s failure to comply with
Section 2.15(e).

     “Executive Order” shall have the meaning assigned to such term in Section 3.22.

     “Existing Lien” shall have the meaning assigned to such term in Section 6.02(c).

     “Federal Funds Effective Rate” shall mean, for any day, the weighted average of the rates on
overnight federal funds transactions with members of the Federal Reserve System of the

	 	 	 
	 
	 	22

 

 

United States arranged by federal funds brokers, as published on the next succeeding Business
Day by the Federal Reserve Bank of New York, or, if such rate is not so published for any day that
is a Business Day, the average of the quotations for the day for such transactions received by the
Administrative Agent from three federal funds brokers of recognized standing selected by it.

     “Fee Letter” shall mean that certain fee letter among Canadian Borrower, the Arrangers, ABN
AMRO, and UBS Loan Finance LLC, dated as of May 25, 2007, as the same may be amended, amended and
restated, supplemented, revised or modified from time to time.

     “Fees” shall mean the fees payable hereunder or under the Fee Letter.

     “Final Maturity Date” shall mean July 6, 2014.

     “Financial Officer” of any person shall mean the chief financial officer, principal accounting
officer, treasurer or controller of such person.

     “Financial Support Direction” shall mean a financial support direction issued by the Pensions
Regulator under Section 43 of the Pensions Act 2004.

     “FIRREA” shall mean the Federal Institutions Reform, Recovery and Enforcement Act of 1989, as
amended.

     “First Priority” means, with respect to any Lien purported to be created in any Collateral
pursuant to any Security Document, that such Lien is the most senior Lien to which such Collateral
is subject, other than Permitted Liens of the type described in Section 6.02(a),
(b), (c), (d), (f), (g), (h), (i),
(j), (k) (to the extent provided in the Intercreditor Agreement), (n),
(o), (q), (r), (s) and (t) which have priority over the
Liens granted pursuant to the Security Documents (and in each case, subject to the proviso to
Section 6.02).

     “Foreign Guarantee” shall have the meaning assigned to such term in Section 7.01.

     “Foreign Lender” shall mean any Lender that is not, for United States federal income tax
purposes, (i) an individual who is a citizen or resident of the United States, (ii) a corporation,
partnership or other entity treated as a corporation or partnership created or organized in or
under the laws of the United States, or any political subdivision thereof, (iii) an estate whose
income is subject to U.S. federal income taxation regardless of its source or (iv) a trust if a
court within the United States is able to exercise primary supervision over the administration of
such trust and one or more United States persons have the authority to control all substantial
decisions of such trust or a trust that properly elected to be treated as a United States person.

     “Foreign Plan” shall mean any pension or other employee benefit or retirement plan, program,
policy, arrangement or agreement maintained or contributed to by any Company with respect to
employees employed outside the United States.

     “Foreign Subsidiary” shall mean a Subsidiary that is organized under the laws of a
jurisdiction other than the United States or any state thereof or the District of Columbia.

	 	 	 
	 
	 	23

 

 

     “Fund” shall mean any person that is (or will be) engaged in making, purchasing, holding or
otherwise investing in commercial loans and similar extensions of credit in the ordinary course.

     “Funded Debt” shall mean, as to any person, all Indebtedness of such person that matures more
than one year from the date of its creation or matures within one year from such date but is
renewable or extendible, at the option of such person, to a date more than one year from such date
or arises under a revolving credit or similar agreement that obligates the lender or lenders to
extend credit during a period of more than one year from such date, including all current
maturities and current sinking fund payments in respect of such Indebtedness whether or not
required to be paid within one year from the date of its creation and, in the case of Canadian
Borrower and its Subsidiaries, Indebtedness in respect of the Loans and the Revolving Credit Loans.

     “GAAP” shall mean generally accepted accounting principles in the United States applied on a
consistent basis.

     “GBP” or “£” shall mean lawful money of the United Kingdom.

     “German Guarantor” shall mean each Subsidiary of Holdings organized in Germany party hereto as
a Guarantor, and each other Subsidiary of Holdings organized in Germany that is required to become
a Guarantor pursuant to the terms hereof.

     “German Security Agreement” shall mean, collectively, any Security Agreement substantially in
the form of Exhibits M-5-1 to 7 among the German Guarantors and the Collateral
Agent for the benefit of the Secured Parties.

     “German Seller” shall mean Novelis Deutschland GmbH, a company organized under the laws of
Germany (including in its roles as seller and collection agent under the Receivables Purchase
Agreement).

     “Governmental Authority” shall mean the government of the United States or any other nation,
or of any political subdivision thereof, whether state, provincial or local, and any agency,
authority, instrumentality, regulatory body, court, central bank or other entity exercising
executive, legislative, judicial, taxing, regulatory or administrative powers or functions of or
pertaining to government (including any supra-national bodies such as the European Union or the
European Central Bank).

     “Governmental Real Property Disclosure Requirements” shall mean any Requirement of Law of any
Governmental Authority requiring notification of the buyer, lessee, mortgagee, assignee or other
transferee of any Real Property, facility, establishment or business, or notification, registration
or filing to or with any Governmental Authority, in connection with the sale, lease, mortgage,
assignment or other transfer (including any transfer of control) of any Real Property, facility,
establishment or business, of the actual or threatened presence or Release in or into the
Environment, or the use, disposal or handling of Hazardous Material on, at, under or near the Real
Property, facility, establishment or business to be sold, leased, mortgaged, assigned or
transferred.

	 	 	 
	 
	 	24

 

 

     “Guarantee Payment” shall have the meaning assigned to such term in Section 7.12(b).

     “Guaranteed Obligations” shall have the meaning assigned to such term in Section 7.01.

     “Guarantees” shall mean the guarantees issued pursuant to ARTICLE VII by the
Guarantors.

     “Guarantors” shall mean each Borrower, Holdings and the Subsidiary Guarantors (including the
U.S. Borrower, Canadian Borrower, Holdings and each other Canadian Guarantor, each U.S. Guarantor,
each Swiss Guarantor, each U.K. Guarantor, the German Guarantor, the Irish Guarantor, the Brazilian
Guarantor, and each other Subsidiary of Holdings that is required to become a Guarantor hereunder).

     “Hazardous Materials” shall mean the following: hazardous substances; hazardous wastes;
polychlorinated biphenyls (“PCBs”) or any substance or compound containing PCBs; asbestos or any
asbestos-containing materials in any form or condition; radon or any other radioactive materials
including any source, special nuclear or by-product material; petroleum, crude oil or any fraction
thereof; and any other pollutant or contaminant or chemicals, wastes, materials, compounds,
constituents or substances, subject to regulation under or which can give rise to liability under
any Environmental Laws.

     “Hedging Agreement” shall mean any swap, cap, collar, forward purchase or similar agreements
or arrangements dealing with interest rates, currency exchange rates or commodity prices, either
generally or under specific contingencies entered into for the purposes of hedging a Company’s
exposure to interest or exchange rates, loan credit exchanges, security or currency valuations or
commodity prices, in each case not for speculative purposes.

     “Hedging Obligations” shall mean obligations under or with respect to Hedging Agreements.

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

     “Holdings” shall mean (i) prior to the consummation of the Permitted Holdings Amalgamation, AV
Aluminum, and (ii) upon and after the consummation of the Permitted Holdings Amalgamation, AV
Metals.

     “Immaterial Subsidiary” shall mean, at any date of determination, any Subsidiary designated as
such in writing by Administrative Borrower to the Administrative Agent that, together with all
other Subsidiaries constituting Immaterial Subsidiaries (i) contributed 5.0% or less of
Consolidated EBITDA for the period of four fiscal quarters most recently ended for which financial
statements have been or are required to have been delivered pursuant to Section 5.01(a) or
5.01(b) prior to the date of determination, (ii) had consolidated assets representing 5.0%
or less of the consolidated total assets of Canadian Borrower and its Subsidiaries on the last day
of the most recent fiscal quarter ended for which financial statements have been or are required to
have been delivered pursuant to Section 5.01(a) or 5.01(b) prior to the date of

	 	 	 
	 
	 	25

 

 

determination, and (iii) is not a Loan Party. The Immaterial Subsidiaries as of the Closing
Date are listed on Schedule 1.01(d).

     “Increase Effective Date” shall have the meaning assigned to such term in Section
2.23(a).

     “Increase Joinder” shall have the meaning assigned to such term in Section 2.23(c).

     “Incremental Term Loan” shall have the meaning assigned to such term in Section
2.23(c).

     “Incremental Term Loan Commitment” shall have the meaning assigned to such term in Section
2.23(a).

     “Incremental Term Loan Maturity Date” shall have the meaning assigned to such term in
Section 2.23(c).

     “Indebtedness” of any person shall mean, without duplication, (a) all obligations of such
person for borrowed money or advances; (b) all obligations of such person evidenced by bonds,
debentures, notes or similar instruments; (c) all obligations of such person under conditional sale
or other title retention agreements relating to property purchased by such person; (d) all
obligations of such person issued or assumed as the deferred purchase price of property or services
(excluding trade accounts payable and accrued obligations incurred in the ordinary course of
business on normal trade terms and not overdue by more than ninety (90) days (other than such
overdue trade accounts payable being contested in good faith and by proper proceedings, for which
appropriate reserves are being maintained with respect to such circumstances in accordance with
GAAP or other applicable accounting standards)); (e) all Indebtedness of others secured by any Lien
on property owned or acquired by such person, whether or not the obligations secured thereby have
been assumed, but limited to the fair market value of such property; (f) all Capital Lease
Obligations, Purchase Money Obligations and synthetic lease obligations of such person; (g) all
Hedging Obligations to the extent required to be reflected on a balance sheet of such person; (h)
all Attributable Indebtedness of such person; (i) all obligations of such person for the
reimbursement of any obligor in respect of letters of credit, letters of guaranty, bankers’
acceptances and similar credit transactions; (j) all obligations of such person under any
Securitization Facility; and (k) all Contingent Obligations of such person in respect of
Indebtedness or obligations of others of the kinds referred to in clauses (a) through (j) above.
The Indebtedness of any person shall include the Indebtedness of any other entity (including any
partnership in which such person is a general partner) to the extent such person is liable therefor
as a result of such person’s ownership interest in or other relationship with such entity, except
(other than in the case of general partner liability) to the extent that terms of such Indebtedness
expressly provide that such person is not liable therefor.

     “Indemnified Taxes” shall mean all Taxes other than Excluded Taxes.

     “Indemnitee” shall have the meaning assigned to such term in Section 11.03(b).

     “Information” shall have the meaning assigned to such term in Section 11.12.

	 	 	 
	 
	 	26

 

 

     “Instruments” shall mean all “instruments,” as such term is defined in the UCC as in effect on
the date hereof in the State of New York, in which any Person now or hereafter has rights.

     “Insurance Policies” shall mean the insurance policies and coverages required to be maintained
by each Loan Party which is an owner of Mortgaged Property with respect to the applicable Mortgaged
Property pursuant to Section 5.04 and all renewals and extensions thereof.

     “Insurance Requirements” shall mean, collectively, all provisions of the Insurance Policies,
all requirements of the issuer of any of the Insurance Policies and all orders, rules, regulations
and any other requirements of the National Board of Fire Underwriters (or any other body exercising
similar functions) binding upon each Loan Party which is an owner of Mortgaged Property and
applicable to the Mortgaged Property or any use or condition thereof.

     “Intellectual Property” shall have the meaning assigned to such term in Section
3.06(a).

     “Interbank Rate” shall mean, for any period, (i) in respect of Loans denominated in dollars,
the Federal Funds Effective Rate, and (ii) in respect of Loans denominated in any other currency,
the Administrative Agent’s cost of funds for such period.

     “Intercompany Note” shall mean a promissory note substantially in the form of Exhibit
P, or such other form as may be agreed to by the Administrative Agent in its sole discretion.

     “Intercreditor Agreement” shall mean that certain Intercreditor Agreement dated as of the date
hereof by and among the Companies party thereto, the Administrative Agent, the Collateral Agent,
the Revolving Credit Funding Agent, the Revolving Credit Canadian Administrative Agent, the
Revolving Credit Canadian Administrative Agent and the Revolving Credit Collateral Agent, as the
same may be amended, restated, supplemented or otherwise modified from time to time.

     “Interest Election Request” shall mean a request by Administrative Borrower to convert or
continue a Borrowing in accordance with Section 2.08(b), substantially in the form of
Exhibit E.

     “Interest Payment Date” shall mean (a) with respect to any ABR Loan, the last Business Day of
each March, June, September and December to occur during any period in which such Loan is
outstanding, (b) with respect to any Eurocurrency Loan, the last day of the Interest Period
applicable to the Borrowing of which such Loan is a part and, in the case of a Eurocurrency Loan
with an Interest Period of more than three months’ duration, each day prior to the last day of such
Interest Period that occurs at intervals of three months’ duration after the first day of such
Interest Period, and (c) with respect to any Term Loan, the Final Maturity Date.

     “Interest Period” shall mean, with respect to any Eurocurrency Borrowing, the period
commencing on the date of such Borrowing and ending on the numerically corresponding day in the
calendar month that is one, two, three or six months, as Administrative Borrower may elect;
provided that (a) if any Interest Period would end on a day other than a Business Day, such
Interest Period shall be extended to the next succeeding Business Day unless such next

	 	 	 
	 
	 	27

 

 

succeeding Business Day would fall in the next calendar month, in which case such Interest
Period shall end on the immediately preceding Business Day, (b) any Interest Period that
commences on the last Business Day of a calendar month (or on a day for which there is no
numerically corresponding day in the last calendar month of such Interest Period) shall end on the
last Business Day of the last calendar month of such Interest Period, (c) Administrative Borrower
shall not select a Interest Period that would extend beyond the Final Maturity Date, (d)
Administrative Borrower shall not select Interest Periods so as to require a payment or prepayment
of any Eurocurrency Loans during an Interest Period for such Loans and (e) any Eurocurrency
Borrowings made or continued during the period ending on the earlier of (x) three months following
the Closing Date and (y) the completion of the primary syndication of the Commitments (as
determined by the Arrangers), shall have a Interest Period of one month. For purposes hereof, the
date of a Borrowing initially shall be the date on which such Borrowing is made and thereafter
shall be the effective date of the most recent conversion or continuation of such Borrowing.

     “Inventory” shall mean all “inventory,” as such term is defined in the UCC as in effect on the
date hereof in the State of New York, wherever located, in which any Person now or hereafter has
rights.

     “Investments” shall have the meaning assigned to such term in Section 6.04.

     “Irish Guarantor” shall mean each Subsidiary of Holdings organized in Ireland party hereto as
a Guarantor, and each other Subsidiary of Holdings organized in Ireland that is required to become
a Guarantor pursuant to the terms hereof.

     “Irish Security Agreement” shall mean, collectively, any Security Agreement substantially in
the form of Exhibits M-6-1 to 5 among the Irish Guarantors and the Collateral Agent
for the benefit of the Secured Parties.

     “Joinder Agreement” shall mean a joinder agreement substantially in the form of Exhibit
F, or such other form as may be agreed to by the Administrative Agent in its sole discretion.

     “Joint Venture” shall mean any person (a) that is not a direct or indirect Subsidiary of
Holdings and (b) in which Canadian Borrower, in the aggregate, together with its Subsidiaries, is
directly or indirectly, the beneficial owner of 5% or more of any class of Equity Interests of such
person.

     “Joint Venture Subsidiary” shall mean each of (i) Aluminum Company of Malaysia Berhard
(Malaysia), (ii) NKL and (iii) any other person that is a Subsidiary in which persons other than
Holdings or its Affiliates own 10% or more of the Equity Interests of such person, excluding Logan
and Norf GmbH.

     “Judgment Currency” shall have the meaning assigned to such term in Section 11.18(a).

     “Judgment Currency Conversion Date” shall have the meaning assigned to such term in
Section 11.18(a).

	 	 	 
	 
	 	28

 

 

     “Land Registry” shall mean the Land Registry of England and Wales.

     “Landlord Access Agreement” shall mean a Landlord Access Agreement, substantially in the form
of Exhibit G, or such other form as may reasonably be acceptable to the Administrative
Agent.

     “Leases” shall mean any and all leases, subleases, tenancies, options, concession agreements,
rental agreements, occupancy agreements, franchise agreements, access agreements and any other
agreements (including all amendments, extensions, replacements, renewals, modifications and/or
guarantees thereof), whether or not of record and whether now in existence or hereafter entered
into, affecting the use or occupancy of all or any portion of any Real Property.

     “Lender Addendum” shall mean with respect to any Lender on the Closing Date, a lender addendum
in the form of Exhibit I, to be executed and delivered by such Lender on the Closing Date
as provided in Section 11.15, as the same may be amended, restated, supplemented or
otherwise modified from time to time.

     “Lenders” shall mean (a) the financial institutions that have become a party hereto pursuant
to a Lender Addendum and (b) any financial institution that has become a party hereto pursuant to
an Assignment and Assumption, other than, in each case, any such financial institution that has
ceased to be a party hereto pursuant to an Assignment and Assumption.

     “LIBOR Rate” shall mean, with respect to any Eurocurrency Borrowing for any Interest Period,
the rate per annum determined by the Administrative Agent to be the arithmetic mean of the offered
rates for deposits in Dollars with a term comparable to such Interest Period that appears on the
Telerate British Bankers Assoc. Interest Settlement Rates Page (as defined below) at approximately
11:00 a.m., London, England time, on the second full Business Day preceding the first day of such
Interest Period; provided, however, that (i) if no comparable term for an Interest
Period is available, the LIBOR Rate shall be determined using the weighted average of the offered
rates for the two terms most nearly corresponding to such Interest Period and (ii) if there shall
at any time no longer exist a Telerate British Bankers Assoc. Interest Settlement Rates Page,
“LIBOR Rate” shall mean, with respect to each day during each Interest Period pertaining to
Eurocurrency Borrowings comprising part of the same Borrowing, the rate per annum equal to the rate
at which the Administrative Agent is offered deposits in Dollars at approximately 11:00 a.m.,
London, England time, two (2) Business Days prior to the first day of such Interest Period in the
London interbank market for delivery on the first day of such Interest Period for the number of
days comprised therein and in an amount comparable to the amount of such Eurocurrency Borrowing to
be outstanding during such Interest Period (or such other amount as the Administrative Agent may
reasonably determine). “Telerate British Bankers Assoc. Interest Settlement Rates Page” shall mean
the display designated as Page 3750 on the Telerate System Incorporated Service (or such other page
as may replace such page on such service for the purpose of displaying the rates at which Dollar
deposits are offered by leading banks in the London interbank deposit market).

     “Lien” shall mean, with respect to any property, (a) any mortgage, deed of trust, lien,
pledge, encumbrance, charge, assignment, hypothecation, security interest or similar

	 	 	 
	 
	 	29

 

 

encumbrance of any kind or any arrangement to provide priority or preference in respect of such property or any
filing of any financing statement or any financing change statement under the UCC, the PPSA or any other similar
notice of lien under any similar notice or recording statute of any Governmental Authority (other than any unauthorized
notice or filing filed after the Closing Date for which there is not otherwise any underlying lien or obligation, so long as the
Borrowers are (if aware of same) using commercially reasonable efforts to cause the removal of
same), including any easement, right-of-way or other encumbrance on title to Real Property, in each
of the foregoing cases whether voluntary or imposed by law, and any agreement to give any of the
foregoing; (b) the interest of a vendor or a lessor under any conditional sale agreement, capital
lease or title retention agreement (or any financing lease having substantially the same economic
effect as any of the foregoing) relating to such property; and (c) in the case of securities, any
purchase option, call or similar right of a third party with respect to such securities.

     “Loan Documents” shall mean this Agreement, the Intercreditor Agreement, the Contribution,
Intercompany, Contracting and Offset Agreement, the Notes (if any), the Security Documents, each
Foreign Guaranty, the Fee Letter, each Hedging Agreement entered into with any counterparty that is
a Secured Party (provided that such Hedging Agreements shall be deemed not to be Loan
Documents for purposes of Sections 1.03 and 1.04 and Articles II,
VI, VIII and XI hereof), and all other pledges, powers of attorney,
consents, assignments, certificates, agreements or documents, whether heretofore, now or hereafter
executed by or on behalf of any Loan Party for the benefit of any Agent or any Lender in connection
with this Agreement.

     “Loan Parties” shall mean Holdings, the Borrowers and the Subsidiary Guarantors.

     “Loans” shall mean Term Loans.

     “Logan” shall mean Logan Aluminum Inc., a Delaware corporation.

     “Logan Location” shall mean the premises of Logan Aluminum Inc., Route 431, North
Russellville, Kentucky 42276.

     “Mandatory Cost” shall mean the per annum percentage rate calculated by the Administrative
Agent in accordance with Annex III.

     “Margin Stock” shall have the meaning assigned to such term in Regulation U.

     “Material Adverse Effect” shall mean (a) a material adverse effect on the business, property,
results of operations, or financial condition of the Loan Parties and their Subsidiaries, taken as
a whole; (b) material impairment of the ability of the Loan Parties to perform their payment and
other material obligations under the Loan Documents; (c) material impairment of the rights of or
benefits or remedies available to the Lenders or the Collateral Agent under the Loan Documents,
taken as a whole; or (d)(i) a material adverse effect on the Revolving Credit Priority Collateral
or the Liens in favor of the Collateral Agent (for its benefit and for the benefit of the other
Secured Parties) on such Collateral or the priority of such Liens, in each case for this clause
(d)(i) taken as a whole, or (ii) a material adverse effect on the Term Loan Priority Collateral or
the Liens in favor of the Collateral Agent (for its benefit and for the benefit of the

	 	 	 
	 
	 	30

 

 

other Secured Parties) on such Collateral or the priority of such Liens, in each case for this clause
(d)(ii) taken as a whole.

     “Material Indebtedness” shall mean (a) Indebtedness under the Revolving Credit Loan Documents
and any Permitted Revolving Credit Facility Refinancings thereof, (b) Indebtedness under the Senior
Notes, the Subordinated Debt Loan and any Permitted Refinancings thereof and (c) any other
Indebtedness (other than the Loans and intercompany Indebtedness of the Companies permitted
hereunder) of the Loan Parties in an aggregate outstanding principal amount exceeding $50 million.

     “Material Subsidiary” shall mean any Subsidiary of Canadian Borrower that is not an Immaterial
Subsidiary.

     “Maximum Rate” shall have the meaning assigned to such term in Section 11.14.

     “Maximum Revolving Credit Facility Amount” shall mean, at any time, the greater of (i) $900
million and (ii) the amount, at such time, of the Total Borrowing Base under and as defined in the
Revolving Credit Agreement as in effect on the Closing Date.

     “Minimum Amount” shall mean (i) an integral multiple of $1 million and not less than $5
million for ABR Loans and (ii) an integral multiple of $1 million and not less than $5 million for
Eurocurrency Loans.

     “Moody’s” shall mean Moody’s Investors Service, Inc.

     “Mortgage” shall mean an agreement, including, but not limited to, a mortgage, charge, deed of
trust, deed of hypothec or any other document, creating and evidencing a Lien on a Mortgaged
Property, which shall be substantially in the form of Exhibit J or, subject to the terms of
the Intercreditor Agreement, other form reasonably satisfactory to the Collateral Agent, in each
case, with such schedules and including such provisions as shall be necessary to conform such
document to applicable local or foreign law or as shall be customary under applicable local or
foreign law.

     “Mortgaged Property” shall mean (a) each Real Property identified as a Mortgaged Property on
Schedule 8(a) to any Perfection Certificate dated the Closing Date, (b) each future Real
Property covered by the terms of any Mortgage, and (c) each Real Property, if any, which shall be
subject to a Mortgage (or other Lien created by a Security Document) delivered after the Closing
Date pursuant to Section 5.11(c).

     “Multiemployer Plan” shall mean a multiemployer plan within the meaning of Section 4001(a)(3)
or Section 3(37) of ERISA (a) to which any Company or any ERISA Affiliate is then making or
accruing an obligation to make contributions; (b) to which any Company or any ERISA Affiliate has
within the preceding five plan years made contributions; or (c) with respect to which any Company
could incur liability.

     “Net Cash Proceeds” shall mean:

	 	 	 
	 
	 	31

 

 

     (a) with respect to any Asset Sale, the cash proceeds received by Holdings or any of
its Subsidiaries (including cash proceeds subsequently received (as and when received by
Holdings or any of its Subsidiaries) in respect of non-cash consideration initially
received) net of (without duplication) (i) selling expenses (including reasonable
brokers’ fees or commissions, legal, accounting and other professional and
transactional fees, transfer and similar taxes and Administrative Borrower’s good faith
estimate of income taxes paid or payable in connection with such sale and repatriation Taxes
that are or would be payable in connection with any sale by a Foreign Subsidiary); (ii)
amounts provided as a reserve, in accordance with GAAP, against (x) any liabilities under
any indemnification obligations associated with such Asset Sale or (y) any other liabilities
retained by Holdings or any of its Subsidiaries associated with the properties sold in such
Asset Sale (provided that, to the extent and at the time any such amounts are
released from such reserve, such amounts shall constitute Net Cash Proceeds); (iii)
Administrative Borrower’s good faith estimate of payments required to be made with respect
to unassumed liabilities relating to the properties sold within ninety (90) days of such
Asset Sale (provided that, to the extent such cash proceeds are not used to make
payments in respect of such unassumed liabilities within ninety (90) days of such Asset
Sale, such cash proceeds shall constitute Net Cash Proceeds); (iv) the principal amount,
premium or penalty, if any, interest and other amounts on any Indebtedness for borrowed
money (other than the Revolving Credit Loans) which is secured by a Lien on the properties
sold in such Asset Sale (so long as such Lien was permitted to encumber such properties
under the Loan Documents at the time of such sale) and which is repaid with such proceeds
(other than any such Indebtedness assumed by the purchaser of such properties); and (v) so
long as any Revolving Credit Loans remain outstanding, the proceeds of any Revolving Credit
Priority Collateral of any Loan Party sold in such Asset Sale (which shall include, for the
avoidance of doubt, the portion of the sale price of the Equity Interests or all or
substantially all of the property, assets or business of any Subsidiary of Holdings
consisting of the net book value of any such Revolving Credit Priority Collateral) to the
extent the proceeds thereof are required to be (and are) applied to the repayment of the
Revolving Credit Loans pursuant to the terms of the Revolving Credit Agreement;

     (b) with respect to any Debt Issuance or any Preferred Stock Issuance, the cash
proceeds thereof, net of customary fees, commissions, costs and other expenses incurred in
connection therewith; and

     (c) with respect to any Equity Issuance or any other issuance of Equity Interests
(other than Preferred Stock) by Holdings, the cash proceeds thereof, net of customary fees,
commissions, costs and other expenses incurred in connection therewith; and

     (d) with respect to any Casualty Event, the cash insurance proceeds, condemnation
awards and other compensation received in respect thereof, net of (i) all reasonable costs
and expenses incurred in connection with the collection of such proceeds, awards or other
compensation in respect of such Casualty Event; and (ii) so long as any Revolving Credit
Loans remain outstanding, any such cash insurance proceeds, condemnation awards and other
compensation received in respect of Revolving

	 	 	 
	 
	 	32

 

 

Credit Priority Collateral of any Loan Party to the extent such amounts are required to be (and are) applied to the repayment of the
Revolving Credit Loans pursuant to the terms of the Revolving Credit Agreement;

provided, however, that Net Cash Proceeds arising from any Asset Sale, Preferred
Stock Issuance or Casualty Event by or applicable to a non-Wholly Owned Subsidiary shall equal the
amount of such Net Cash Proceeds calculated as provided above less the percentage thereof equal to
the percentage of any Equity Interests of such non-Wholly Owned Subsidiary not owned by Holdings
and its Subsidiaries.

     “Net Cash Proceeds Account” means any segregated Deposit Account or Securities Account
established by any Borrower or any other Guarantor with one or more financial institutions
reasonably satisfactory to the Collateral Agent (which, in the case of an account established by
Canadian Borrower, shall not be a Lender or an Affiliate of a Lender) that (i) is subject to a
Control Agreement, (ii) is subject to a First Priority security interest in favor of the Collateral
Agent for the ratable benefit of the Secured Parties to secure the Secured Obligations and (iii)
solely contains proceeds of Term Loan Priority Collateral (and any products of such proceeds), and
which has been designated in writing to the Revolving Credit Agents as a “Net Cash Proceeds
Account” on or prior to the time that the Net Cash Proceeds from any sale of Term Loan Priority
Collateral shall be deposited therein, pending application of such proceeds (and any products of
such proceeds) in accordance with the terms hereof.

     “Net Working Capital” shall mean, at any time, Consolidated Current Assets at such time minus
Consolidated Current Liabilities at such time.

     “Net Yield” shall have the meaning assigned to such term in Section 2.23(c).

     “NKL” shall mean Novelis Korea Limited.

     “Non-Guarantor Subsidiary” shall mean each Subsidiary that is not a Guarantor.

     “Norf GmbH” shall mean Aluminium Norf GmbH, a limited liability company (GmbH) organized under
the laws of Germany.

     “Notes” shall mean any notes evidencing the U.S. Term Loans or Canadian Terms Loans issued
pursuant to this Agreement, if any, substantially in the form of Exhibit K-1 or
K-2.

     “Novelis AG” shall mean Novelis AG, a stock corporation (AG) organized under the laws of
Switzerland.

     “Novelis AG Cash Pooling Agreement” shall mean a Cash Management Agreement entered into among
Novelis AG and certain “European Affiliates” (as identified therein) dated 1 February 2007,
together with all ancillary documentation thereto.

     “Novelis Corporation” shall mean Novelis Corporation, a Texas corporation.

     “Novelis Inc.” shall mean Novelis Inc., a corporation formed under the Canada Business
Corporations Act.

	 	 	 
	 
	 	33

 

 

     “Obligation Currency” shall have the meaning assigned to such term in Section
11.18(a).

     “Obligations” shall mean (a) obligations of the Borrowers and the other Loan Parties from time
to time arising under or in respect of the due and punctual payment of (i) the principal of and
premium, if any, and interest (including interest accruing (and interest that would have accrued
but for such proceeding) during the pendency of any bankruptcy, insolvency, receivership or other
similar proceeding, regardless of whether allowed or allowable in such proceeding) on the Loans,
when and as due, whether at maturity, by acceleration, upon one or more dates set for prepayment or
otherwise and (ii) all other monetary obligations, including fees, costs, expenses and indemnities,
whether primary, secondary, direct, contingent, fixed or otherwise (including monetary obligations
incurred during the pendency of any bankruptcy, insolvency, receivership or other similar
proceeding, regardless of whether allowed or allowable in such proceeding), of the Borrowers and
the other Loan Parties under this Agreement and the other Loan Documents, and (b) the due and
punctual performance of all covenants, agreements, obligations and liabilities of the Borrowers and
the other Loan Parties under or pursuant to this Agreement and the other Loan Documents.

     “OFAC” shall have the meaning assigned to such term in Section 3.22.

     “Officers’ Certificate” shall mean a certificate executed by a Responsible Officer in his or
her official (and not individual) capacity.

     “Organizational Documents” shall mean, with respect to any person, (i) in the case of any
corporation, the certificate of incorporation and by-laws (or similar documents) of such person,
(ii) in the case of any limited liability company, the certificate of formation and operating
agreement (or similar documents) of such person, (iii) in the case of any limited partnership, the
certificate of formation and limited partnership agreement (or similar documents) of such person,
(iv) in the case of any general partnership, the partnership agreement (or similar document) of
such person and (v) in any other case, the functional equivalent of the foregoing.

     “Other Taxes” shall mean all present or future stamp, recording, documentary, excise,
transfer, sales, property or similar taxes, charges or levies arising from any payment made
hereunder or under any other Loan Document or from the execution, delivery or enforcement of, or
otherwise with respect to, this Agreement or any other Loan Document.

     “Parent Guarantor” shall mean (i) prior to the consummation of the Permitted Holdings
Amalgamation, AV Aluminum, and (ii) upon and after the consummation of the Permitted Holdings
Amalgamation, AV Metals.

     “Participant” shall have the meaning assigned to such term in Section 11.04(d).

     “Participating Member States” shall mean the member states of the European Communities that
adopt or have adopted the euro as their lawful currency in accordance with the legislation of the
European Union relating to European Monetary Union.

     “PBGC” shall mean the Pension Benefit Guaranty Corporation referred to and defined in ERISA.

	 	 	 
	 
	 	34

 

 

     “Pensions Regulator” shall mean the body corporate called the Pensions Regulator established
under Part I of the Pensions Act 2004.

     “Perfection Certificate” shall mean, individually and collectively, as the context may
require, each certificate of a Loan Party in the form of Exhibit L-1 or any other form
approved by the Collateral Agent, as the same shall be supplemented from time to time by a
Perfection Certificate Supplement or otherwise.

     “Perfection Certificate Supplement” shall mean a certificate supplement in the form of
Exhibit L-2 or any other form approved by the Collateral Agent.

     “Permitted Acquisition” shall mean any Acquisition, if each of the following conditions is
met:

     (i) no Default is then continuing or would result therefrom;

     (ii) no Company shall, in connection with any such transaction, assume or remain liable
with respect to any Indebtedness of the related seller or the business, person or properties
acquired, except to the extent permitted under Section 6.01, and any other such
Indebtedness not permitted to be assumed or otherwise supported by any Company hereunder
shall be paid in full or released as to the business, persons or properties being so
acquired on or before the consummation of such acquisition;

     (iii) the person or business to be acquired shall be, or shall be engaged in, a
business of the type that the Loan Parties and the Subsidiaries are permitted to be engaged
in under Section 6.15, and the person or business and any property acquired in
connection with any such transaction shall be free and clear of any Liens, other than
Permitted Liens;

     (iv) the Board of Directors of the person to be acquired shall not have indicated
publicly its opposition to the consummation of such acquisition (which opposition has not
been publicly withdrawn);

     (v) all transactions in connection therewith shall be consummated in all material
respects in accordance with all applicable Requirements of Law;

     (vi) with respect to any transaction involving Acquisition Consideration of more than
$25 million, unless the Administrative Agent shall otherwise agree, Administrative Borrower
shall have provided the Administrative Agent with (A) ten (10) Business Days’ prior written
notice of such transaction, which notice shall describe in reasonable detail the terms and
conditions of such transaction and the person or business to be acquired and (B) all such
other information and data relating to such transaction or the person or business to be
acquired as may be reasonably requested by the Administrative Agent;

     (vii) the property acquired in connection with any such transaction shall be made
subject to the Lien of the Security Documents, and any person acquired in connection with
any such transaction shall become a Guarantor, in each case, to the

	 	 	 
	 
	 	35

 

 

extent required under, and within the relevant time periods provided in, Section
5.11, on terms reasonably satisfactory to the Agents, and the Agents shall have received
all opinions, certificates, lien search results and other documents in connection therewith
reasonably requested by the Agents;

     (viii) with respect to any transaction involving Acquisition Consideration that, when
added to the fair market value of Equity Interests, including Equity Interests of Holdings,
constituting purchase consideration, exceeds $10 million, Administrative Borrower shall have
delivered to the Administrative Agent an Officers’ Certificate certifying that (A) such
transaction complies with this definition and (B) such transaction could not reasonably be
expected to result in a Material Adverse Effect;

     (ix) the Acquisition Consideration for such acquisition shall not exceed $250 million,
and the aggregate amount of the Acquisition Consideration for all Permitted Acquisitions
since the Closing Date shall not exceed $500 million; and

     (x) not more than 35% of the aggregate amount of all such Permitted Acquisitions (as
determined by reference to the aggregate amount of the Acquisition Consideration applied in
respect thereof) shall be of persons that do not become Loan Parties in accordance with
Section 5.11 upon consummation of such Permitted Acquisitions.

     “Permitted Factoring Facility” shall mean a sale of Accounts on a discounted basis by any
Company that is not a Borrower and is not organized under the laws of, and does not conduct
business in, a Principal Jurisdiction, so long as (i) no Loan Party has any obligation, contingent
or otherwise in connection with such sale (other than to deliver the Accounts purported to be sold
free and clear of any encumbrance), and (ii) such sale is for cash and fair market value.

     “Permitted Holdings Amalgamation” shall mean the amalgamation of AV Aluminum and Canadian
Borrower on a single occasion following the Closing Date; provided that (i) no Default
exists or would result therefrom, (ii) the person resulting from such amalgamation shall be named
Novelis Inc., and shall be a corporation formed under the Canada Business Corporations Act (such
resulting person, the “Successor Canadian Borrower”), and the Successor Canadian Borrower shall
expressly confirm its obligations as Canadian Borrower under this Agreement and the other Loan
Documents to which Canadian Borrower is a party pursuant to a confirmation in form and substance
reasonably satisfactory to the Administrative Agent, (iii) immediately upon consummation of such
amalgamation, AV Metals shall (A) be an entity organized or existing under the laws of Canada, (B)
directly own 100% of the Equity Interests in the Successor Canadian Borrower, (C) execute a
supplement or joinder to this Agreement in form and substance reasonably satisfactory to the
Administrative Agent to become a Guarantor and execute Security Documents (or supplements or
joinder agreements thereto) in form and substance reasonably satisfactory to the Administrative
Agent, and take all actions necessary or advisable in the opinion of the Administrative Agent or
the Collateral Agent to cause the Lien created by the applicable Security Documents to be a duly
perfected First Priority Lien in accordance with all applicable Requirements of Law, including the
filing of financing statements (or other applicable filings) in such jurisdictions as may be
reasonably requested by

	 	 	 
	 
	 	36

 

 

the Administrative Agent or the Collateral Agent and (D) subject to the terms of the
Intercreditor Agreement, pledge and deliver to the Collateral Agent the certificates, if any,
representing all of the Equity Interests of the Successor Canadian Borrower, together with undated
stock powers or other appropriate instruments of transfer executed and delivered in blank by a duly
authorized officer of AV Metals, (iv) immediately after giving effect to any such amalgamation, the
Senior Secured Leverage Ratio is not greater than the Senior Secured Leverage Ratio immediately
prior to such amalgamation, and evidenced by a certificate from the chief financial officer of
Canadian Borrower demonstrating such compliance calculation in reasonable detail, (v) the Successor
Canadian Borrower shall have no Indebtedness after giving effect to the Permitted Holdings
Amalgamation other than Indebtedness of Canadian Borrower in existence prior to the date of the
Permitted Holdings Amalgamation and the Subordinated Debt Loan so long as the Subordinated Debt
Loan shall have been amended in a manner satisfactory to the Funding Agent to reflect the
subordination of the Subordinated Debt Loan to Canadian Borrower’s Secured Obligations and the
Subordinated Debt Loan, if any, has been pledged by AV Metals as security for its guarantee of the
Secured Obligations in a manner satisfactory to the Administrative Agent, (vi) each other
Guarantor, shall have by a confirmation in form and substance reasonably satisfactory to the
Administrative Agent, confirmed that its guarantee of the Guaranteed Obligations (including its
Guarantee) shall apply to the Successor Canadian Borrower’s obligations under this Agreement, (vii)
Canadian Borrower and each other Guarantor shall have by confirmations and any required supplements
to the applicable Security Documents reasonably requested by the Administrative Agent, in each
case, in form and substance reasonably satisfactory to the Administrative Agent, confirmed that its
obligations thereunder shall apply to the Successor Canadian Borrower’s obligations under this
Agreement and (viii) each Loan Party shall have delivered opinions of counsel and related officers’
certificates reasonably requested by the Administrative Agent with respect to the execution and
delivery and enforceability of the documents referred to above and the compliance of such
amalgamation with the provisions hereof, and all such opinions of counsel shall be satisfactory to
the Administrative Agent; and provided, further, that (x) if the foregoing are
satisfied, (1) AV Metals will be substituted for and assume all obligations of AV Aluminum under
this Agreement and each of the other Loan Documents and (2) the Successor Canadian Borrower shall
be substituted for Novelis Inc. under this Agreement and each of the other Loan Documents and all
references hereunder and under the other Loan Documents to Canadian Borrower shall be references to
the Successor Canadian Borrower and (y) notwithstanding any provision of Section 11.02, the
Agents are hereby authorized by the Lenders to make any amendments to the Loan Documents that are
necessary to reflect such changes in the parties to the applicable Loan Documents.

     “Permitted Holdings Indebtedness” shall mean unsecured Indebtedness of Holdings (i) with
respect to which no Borrower or Subsidiary has any Contingent Obligation, (ii) that will not mature
prior to the 180th day following the Final Maturity Date, (iii) that has no scheduled
amortization of principal prior to the 180th day following the Final Maturity Date, (iv)
does not require any payments in cash of interest or other amounts in respect of the principal
thereof (other than optional redemption provisions customary for senior discount or “pay-in-kind”
notes) for a number of years from the date of issuance or incurrence thereof equal to at least
one-half of the term to maturity thereof, (v) has mandatory prepayment, repurchase or redemption,
covenant, default and remedy provisions customary for senior discount or “pay-in-kind” notes of an
issuer that is the parent of a borrower under senior secured asset based revolving credit
facilities and (vi) that is issued to a person that is not an Affiliate of Canadian Borrower or any
of its

	 	 	 
	 
	 	37

 

 

Subsidiaries in an arm’s-length transaction on fair market terms; provided that at
least five Business Days prior to the incurrence of such Indebtedness, a Responsible Officer of
Holdings shall have delivered a certificate to the Administrative Agent (together with a reasonably
detailed description of the material terms and conditions of such Indebtedness or drafts of the
documentation relating thereto) stating that Holdings has determined in good faith that such terms
and conditions satisfy the foregoing requirements.

     “Permitted Liens” shall have the meaning assigned to such term in Section 6.02.

     “Permitted Refinancing” shall mean, with respect to any person, any refinancing or renewal of
any Indebtedness of such person; provided that (a) (i) in the case of any such refinancing
or renewal of the Subordinated Debt Loan, if the aggregate principal amount (or accreted value, if
applicable) of such refinancing or renewal exceeds the aggregate principal amount (or accreted
value, if applicable) of the Indebtedness so refinanced or renewed plus accrued interest
thereon and reasonable fees and expenses payable in connection with such refinancing, the amount of
any such excess is contributed by Holdings to Canadian Borrower concurrently with such refinancing
or renewal and (ii) in the case of any refinancing or renewal of any other Indebtedness, the
aggregate principal amount (or accreted value, if applicable) thereof does not exceed the aggregate
principal amount (or accreted value, if applicable) of the Indebtedness so refinanced or renewed
except by an amount equal to unpaid accrued interest and premium thereon and any make-whole
payments applicable thereto plus other reasonable amounts paid, and fees and expenses
reasonably incurred, in connection with such refinancing or renewal and by an amount equal to any
existing commitments unutilized thereunder, (b) such refinancing or renewal has a final maturity
date equal to or later than the final maturity date of, and has a Weighted Average Life to Maturity
equal to or greater than the Weighted Average Life to Maturity of, the Indebtedness being
refinanced or renewed (excluding the effects of nominal amortization in the amount of no greater
than one percent per annum and prepayments of Indebtedness), (c) no Default is then continuing or
would result therefrom, (d) the persons that are (or are required to be) obligors under such
refinancing or renewal are the same persons as those that are (or are required to be) obligors
under the Indebtedness being so refinanced or renewed (or, in the case of a Permitted Refinancing
of the Senior Notes, such obligors are Loan Parties (other than Holdings)) and (e) the
subordination provisions thereof (if any) shall be, in the aggregate, no less favorable to the
Lenders than those contained in the Indebtedness being so refinanced or renewed; provided
that at least five Business Days prior to the incurrence of such refinancing or renewal, a
Responsible Officer of Administrative Borrower shall have delivered an Officers’ Certificate to the
Administrative Agent (together with a reasonably detailed description of the material terms and
conditions of such Indebtedness or drafts of the documentation relating thereto) certifying that
Administrative Borrower has determined in good faith that such terms and conditions satisfy the
foregoing requirements.

     “Permitted Revolving Credit Facility Refinancing” shall mean any refinancing or renewal of the
Indebtedness incurred under the Revolving Credit Loan Documents; provided that (a) the
aggregate principal amount (or accreted value, if applicable) of all such Indebtedness, after
giving effect to such refinancing or renewal, shall not exceed the Maximum Revolving Credit
Facility Amount then in effect plus an amount equal to unpaid accrued interest and premium
on the Indebtedness being so refinanced or renewed plus other reasonable amounts paid, and
fees and expenses reasonably incurred, in connection with such refinancing or renewal,

	 	 	 
	 
	 	38

 

 

(b) the “Applicable Margin” or similar component of the interest rate or yield provisions
applicable to such Indebtedness, after giving effect to such refinancing or renewal, is not
increased from the highest “Applicable Margin” set forth in the Revolving Credit Loan Documents as
of the Closing Date by more than 3% per annum (excluding increases resulting from the accrual of
interest at the default rate specified in the Revolving Credit Agreement), (c) such refinancing or
renewal has a final maturity date equal to or later than the final maturity date of the
Indebtedness being so refinanced or renewed, (d) no Default is existing or would result therefrom
and (e) the persons that are (or are required to be) obligors under such refinancing or renewal are
the same persons as those that are (or are required to be) obligors under the Indebtedness being so
refinanced or renewed (unless, in the case of a refinancing of Indebtedness of a Loan Party, such
persons are or become obligors under the Loan Documents); provided that at least five
Business Days prior to the incurrence of such refinancing or renewal, a Responsible Officer of
Administrative Borrower shall have delivered an Officers’ Certificate to the Administrative Agent
(together with a reasonably detailed description of the material terms and conditions of such
Indebtedness or drafts of the documentation relating thereto) certifying that Administrative
Borrower has determined in good faith that such terms and conditions satisfy the foregoing
requirements.

     “Permitted Uses” shall mean, as to any person, (a) investments in Cash Equivalents, (b) the
payment of Capital Lease Obligations of such person, (c) Capital Expenditures of such person, (d)
the payment of trade payables in the ordinary course of its business, and (e) the payment of its
Taxes and other statutory obligations.

     “person” or “Person” shall mean any natural person, corporation, limited liability company,
trust, joint venture, association, company, partnership, Governmental Authority or other entity.

     “Plan” shall mean any employee pension benefit plan (other than a Multiemployer Plan) subject
to the provisions of Title IV of ERISA or Section 412 of the Code or Section 302 of ERISA which is
maintained or contributed to by any Company or its ERISA Affiliate or with respect to which any
Company could incur liability (including under Section 4069 of ERISA).

     “Platform” shall have the meaning assigned to such term in Section 11.01(d).

     “Pledged Intercompany Notes” shall mean, with respect to each Loan Party, all intercompany
notes described in Schedule 11 to the Perfection Certificate as of the Closing Date and
intercompany notes hereafter acquired by such Loan Party and all certificates, instruments or
agreements evidencing such intercompany notes, and all assignments, amendments, restatements,
supplements, extensions, renewals, replacements or modifications thereof to the extent permitted
pursuant to the terms hereof.

     “Pledged Securities” shall mean, collectively, with respect to each Loan Party, (i) all issued
and outstanding Equity Interests of each issuer set forth on Schedule 10 to the Perfection
Certificate as of the Closing Date as being owned by such Loan Party and all options, warrants,
rights, agreements and additional Equity Interests of whatever class of any such issuer acquired by
such Loan Party (including by issuance), together with all rights, privileges, authority and powers
of such Loan Party relating to such Equity Interests in each such issuer or under any

	 	 	 
	 
	 	39

 

 

Organizational Document of each such issuer, and the certificates, instruments and agreements
representing such Equity Interests and any and all interest of such Loan Party in the entries on
the books of any financial intermediary pertaining to such Equity Interests, (ii) all Equity
Interests of any issuer, which Equity Interests are hereafter acquired by such Loan Party
(including by issuance) and all options, warrants, rights, agreements and additional Equity
Interests of whatever class of any such issuer acquired by such Loan Party (including by issuance),
together with all rights, privileges, authority and powers of such Loan Party relating to such
Equity Interests or under any Organizational Document of any such issuer, and the certificates,
instruments and agreements representing such Equity Interests and any and all interest of such Loan
Party in the entries on the books of any financial intermediary pertaining to such Equity
Interests, from time to time acquired by such Loan Party in any manner, and (iii) all Equity
Interests issued in respect of the Equity Interests referred to in clause (i) or (ii) upon any
consolidation or merger of any issuer of such Equity Interests.

     “Post-Increase Lenders” shall have the meaning assigned to such term in Section
2.23(d).

     “PPSA” shall mean the Personal Property Security Act (Ontario) and the regulations promulgated
thereunder and other applicable personal property security legislation of the applicable Canadian
province or provinces in respect of the Canadian Loan Parties (including the Civil Code of Quebec
and the regulations respecting the register of personal and movable real rights promulgated
thereunder) as all such legislation now exists or may from time to time hereafter be amended,
modified, recodified, supplemented or replaced, together with all rules, regulations and
interpretations thereunder or related thereto.

     “Pre-Increase Lenders” shall have the meaning assigned to such term in Section
2.23(d).

     “Preferred Stock” shall mean, with respect to any person, any and all preferred or preference
Equity Interests (however designated) of such person whether now outstanding or issued after the
Closing Date.

     “Preferred Stock Issuance” shall mean the issuance or sale by Holdings or any of its
Subsidiaries of any Preferred Stock after the Closing Date.

     “Prepayment Offer Amounts” shall have the meaning assigned to such term in Section
2.10(i)(ii).

     “Prepayment Offer Notice” shall have the meaning assigned to such term in Section
2.10(i)(ii).

     “Principal Jurisdiction” shall mean the United States, Canada, the United Kingdom,
Switzerland, Germany and any state, province or other political subdivision of the foregoing.

     “Pro Forma Basis” shall mean on a basis in accordance with GAAP and Regulation S-X and
otherwise reasonably satisfactory to the Administrative Agent.

	 	 	 
	 
	 	40

 

 

     “Pro Rata Percentage” of any Lender at any time shall mean the percentage of the sum of the
total outstanding Loans and unused Commitments of all Lenders represented by such Lender’s
outstanding Loans and unused Commitments.

     “Process Agent” shall have the meaning assigned to such term in Section 11.09(d).

     “property” shall mean any right, title or interest in or to property or assets of any kind
whatsoever, whether real, personal or mixed and whether tangible or intangible and including Equity
Interests or other ownership interests of any person and whether now in existence or owned or
hereafter entered into or acquired, including all Real Property.

     “Property Material Adverse Effect” shall mean, with respect to any Mortgaged Property, as of
any date of determination and whether individually or in the aggregate, any event, circumstance,
occurrence or condition which has caused or resulted in (or would reasonably be expected to cause
or result in) a material adverse effect on (a) the business or operations of any Company as
presently conducted at the Mortgaged Property; (b) the value or utility of the Mortgaged Property;
or (c) the legality, priority or enforceability of the Lien created by the Mortgage or the rights
and remedies of the Mortgagee thereunder.

     “PTR Scheme” shall mean the Provisional Treaty Relief scheme as described in the HM Revenue &
Customs (formerly the Inland Revenue Guidelines dated January 2003 and administered by HM Revenue &
Customs’ Centre for Non-Residents.

     “Purchase Money Obligation” shall mean, for any person, the obligations of such person in
respect of Indebtedness (including Capital Lease Obligations) incurred for the purpose of financing
all or any part of the purchase price of any property (including Equity Interests of any person) or
the cost of installation, construction or improvement of any property and any refinancing thereof;
provided, however, that (i) such Indebtedness is incurred within one year after
such acquisition, installation, construction or improvement of such property by such person and
(ii) the amount of such Indebtedness does not exceed 100% of the cost of such acquisition,
installation, construction or improvement, as the case may be.

     “Qualified Capital Stock” of any person shall mean any Equity Interests of such person that
are not Disqualified Capital Stock.

     “Real Property” shall mean, collectively, all right, title and interest (including any
freehold, leasehold, mineral or other estate) in and to any and all parcels of or interests in real
property owned, leased or operated by any person, whether by lease, license or other means,
together with, in each case, all easements, hereditaments and appurtenances relating thereto, all
improvements and appurtenant fixtures, all general intangibles and contract rights and other
property and rights incidental to the ownership, lease or operation thereof.

     “Receivable” shall mean the indebtedness and other obligations owed to any Company (other than
any Loan Party or any Company organized under the laws of Germany) (at the time such indebtedness
and other obligations arise, and before giving effect to any transfer or conveyance contemplated
under any Securitization Facility documentation) or in which such person has a security interest or
other interest, including any indebtedness, obligation or interest constituting an Account,
contract right, payment intangible, promissory note, chattel paper,

	 	 	 
	 
	 	41

 

 

instrument, document, investment property, financial asset or general intangible, arising in
connection with the sale of goods or the rendering of services by such person, and further
includes, the obligation to pay any finance charges with respect thereto.

     “Receivables Purchase Agreement” shall mean the receivables purchase agreement and any related
servicing agreements between the German Seller, on the one hand, and Novelis AG, on the other hand,
in substantially the form of Exhibit R or otherwise in form and substance reasonably
satisfactory to the Administrative Agent, in each case providing, inter alia, for the sale and
transfer of Accounts by the German Seller to Novelis AG, as each such agreement may be amended,
modified, supplemented or replaced from time to time in accordance with the terms thereof.

     “Receiver” shall mean a receiver or receiver and manager or, where permitted by law, an
administrative receiver of the whole or any part of the Collateral, and that term will include any
appointee under a joint and/or several appointments.

     “Refinancing” shall mean the repayment in full and the termination of any commitment to make
extensions of credit under all of the outstanding indebtedness listed on Schedule 1.01(a)
of Canadian Borrower or any of its Subsidiaries.

     “Register” shall have the meaning assigned to such term in Section 11.04(c).

     “Regulation” shall have the meaning assigned to such term in Section 3.27.

     “Regulation D” shall mean Regulation D of the Board as from time to time in effect and all
official rulings and interpretations thereunder or thereof.

     “Regulation S-X” shall mean Regulation S-X promulgated under the Securities Act.

     “Regulation T” shall mean Regulation T of the Board as from time to time in effect and all
official rulings and interpretations thereunder or thereof.

     “Regulation U” shall mean Regulation U of the Board as from time to time in effect and all
official rulings and interpretations thereunder or thereof.

     “Regulation X” shall mean Regulation X of the Board as from time to time in effect and all
official rulings and interpretations thereunder or thereof.

     “Related Business Assets” shall mean assets (other than cash or Cash Equivalents) used or
useful in a Similar Business; provided that any assets received by any Loan Party in
exchange for assets transferred by a Loan Party shall not be deemed to be Related Business Assets
if they consist of securities of a person, unless upon receipt of the securities of such person,
such person would become a Loan Party.

     “Related Parties” shall mean, with respect to any person, such person’s Affiliates and the
partners, directors, officers, employees, agents and advisors of such person and of such person’s
Affiliates.

	 	 	 
	 
	 	42

 

 

     “Related Security” shall mean, with respect to any Receivable, all of the applicable
Securitization Subsidiary’s interest in the inventory and goods (including returned or repossessed
inventory or goods), if any, the sale of which by the applicable Company gave rise to such
Receivable, and all insurance contracts with respect thereto, all other security interests or liens
and property subject thereto from time to time, if any, purporting to secure payment of such
Receivable, whether pursuant to the contract related to such Receivable or otherwise, together with
all financing statements and security agreements describing any collateral securing such
Receivable, all guaranties, letters of credit, letter-of-credit rights, supporting obligations,
insurance and other agreements or arrangements of whatever character from time to time supporting
or securing payment of such Receivable whether pursuant to the contract related to such Receivable
or otherwise, all service contracts and other contracts and agreements associated with such
Receivable, all records related to such Receivable, and all of the applicable Securitization
Subsidiaries’ right, title and interest in, to and under the applicable Securitization Facility
documentation.

     “Release” shall mean any spilling, leaking, seepage, pumping, pouring, emitting, emptying,
discharging, injecting, escaping, leaching, dumping, disposing, depositing, dispersing, emanating
or migrating of any Hazardous Material in, into, onto or through the Environment.

     “Required Class Lenders” shall mean, with respect to any Class of Loans, Lenders having more
than 50% of the sum of all Loans and unused Commitments (if any) of such Class outstanding.

     “Required Lenders” shall mean Lenders having more than 50% of the sum of all Loans outstanding
and unused Commitments (if any).

     “Requirements of Law” shall mean, collectively, any and all legally binding requirements of
any Governmental Authority including any and all laws, judgments, orders, decrees, ordinances,
rules, regulations, statutes or case law.

     “Response” shall mean (a) “response” as such term is defined in CERCLA, 42 U.S.C. § 9601(24),
and (b) all other actions required by any Governmental Authority or voluntarily undertaken to (i)
clean up, remove, treat, abate or in any other way address any Hazardous Material in the
Environment; (ii) prevent the Release or threat of Release, or minimize the further Release, of any
Hazardous Material; or (iii) perform studies and investigations in connection with, or as a
precondition to, or to determine the necessity of the activities described in, clause (i) or (ii)
above.

     “Responsible Officer” shall mean, with respect to any Person, any of the principal executive
officers, managing members or general partners of such Person but, in any event, with respect to
financial matters, the chief financial officer, treasurer or controller of such person.

     “Restricted Grantor” shall mean a Loan Party that has granted a Guarantee that is subject to
limitations that impair in any material respect the benefit of such Guarantee (as determined by the
Administrative Agent in its reasonable discretion) (it being expressly understood and agreed that
(i) no Loan Party that is Canadian Borrower, a Canadian Guarantor, a U.K. Guarantor, U.S. Borrower
or a U.S. Guarantor shall be a Restricted Grantor and (ii) except

	 	 	 
	 
	 	43

 

 

as may be otherwise determined by the Administrative Agent in its reasonable discretion, each
Loan Party that is a German Guarantor, an Irish Guarantor, a Swiss Guarantor or a Brazilian
Guarantor shall be a Restricted Grantor).

     “Revolving Credit Agents” shall mean the “Agents” (as defined in the Revolving Credit Loan
Documents, including the Revolving Credit Funding Agent, the Revolving Credit Canadian
Administrative Agent and the Revolving Credit Collateral Agent).

     “Revolving Credit Agreement” shall mean (i) that certain credit agreement dated as of the date
hereof among the Loan Parties, the Revolving Credit Lenders, ABN AMRO Bank N.V., as U.S./European
issuing bank, as U.S. swingline lender, and as administrative agent, the Revolving Credit Canadian
Administrative Agent, ABN AMRO Bank N.V., acting through its Canadian branch, as Canadian issuing
bank and as Canadian funding agent, the Revolving Credit Collateral Agent, the Revolving Credit
Funding Agent, UBS Securities LLC, as syndication agent, Bank of America, N.A., National City
Business Credit, Inc. and CIT Business Credit Canada Inc., as documentation agents, and ABN AMRO
Incorporated and UBS Securities LLC, as joint lead arrangers and joint bookmanagers, as amended,
restated, supplemented or modified from time to time to the extent permitted by this Agreement and
the Intercreditor Agreement and (ii) any other credit agreement, loan agreement, note agreement,
promissory note, indenture or other agreement or instrument evidencing or governing the terms of
any indebtedness or other financial accommodation that has been incurred to extend (subject to the
limitations set forth herein and in the Intercreditor Agreement) or refinance in whole or in part
the indebtedness and other obligations outstanding under the (x) credit agreement referred to in
clause (i) or (y) any subsequent Revolving Credit Agreement, in each case which constitutes a
Permitted Revolving Credit Facility Refinancing with respect to the Revolving Credit Loans, unless
such agreement or instrument expressly provides that it is not intended to be and is not a
Revolving Credit Agreement hereunder. Any reference to the Revolving Credit Agreement hereunder
shall be deemed a reference to any Revolving Credit Agreement then in existence.

     “Revolving Credit Canadian Administrative Agent” shall mean ABN AMRO Bank N.V., acting through
its Canadian branch, in its capacity as Canadian administrative agent under the Revolving Credit
Agreement, and its successors and assigns in such capacity.

     “Revolving Credit Canadian Funding Agent” shall mean ABN AMRO Bank N.V., acting through its
Canadian branch, in its capacity as Canadian funding agent under the Revolving Credit Agreement,
and its successors and assigns in such capacity.

     “Revolving Credit Collateral Agent” shall mean LaSalle Business Credit, LLC, in its capacity
as collateral agent under the Revolving Credit Agreement, and its successors and assigns in such
capacity.

     “Revolving Credit Commitments” shall mean the commitments of the Revolving Credit Lenders to
make Revolving Credit Loans under the Revolving Credit Agreement.

     “Revolving Credit Funding Agent” shall mean LaSalle Business Credit, LLC, in its capacity as
funding agent under the Revolving Credit Agreement, and its successors and assigns in such
capacity.

	 	 	 
	 
	 	44

 

 

     “Revolving Credit Lenders” shall mean the banks, financial institutions and other entities
from time to time party to the Revolving Credit Agreement as lenders.

     “Revolving Credit Loan Documents” shall mean the Revolving Credit Agreement and the other
“Loan Documents” as defined in the Revolving Credit Agreement, including the mortgages and other
security documents, guaranties and the notes issued thereunder.

     “Revolving Credit Loans” shall mean the revolving loans and swingline loans outstanding under
the Revolving Credit Agreement.

     “Revolving Credit Maturity Date” shall have meaning assigned to the term “Final Maturity Date”
in the Revolving Credit Agreement (and any corresponding term in any successor Revolving Credit
Agreement permitted hereby).

     “Revolving Credit Obligations” shall mean the Revolving Credit Loans and the guarantees by the
Loan Parties under the Revolving Credit Loan Documents.

     “Revolving Credit Priority Collateral” shall mean all “Revolving Credit Priority Collateral”
as defined in the Intercreditor Agreement.

     “Revolving Credit Secured Parties” shall mean the Revolving Credit Funding Agent, the
Revolving Credit Canadian Administrative Agent, the Revolving Credit Collateral Agent and each
other Person that is a “Secured Party” under the Revolving Credit Agreement.

     “Revolving Credit Security Documents” shall have the meaning assigned to the term “Security
Documents” in the Revolving Credit Agreement (and any corresponding term in any successor Revolving
Credit Agreement permitted hereby).

     “S&P” shall mean Standard & Poor’s Rating Services.

     “Sale and Leaseback Transaction” shall have the meaning assigned to such term in Section
6.03.

     “Sarbanes-Oxley Act” shall mean the United States Sarbanes-Oxley Act of 2002, as amended, and
all rules and regulations promulgated thereunder.

     “Section 347” shall have the meaning assigned to such term in Section 2.19(a).

     “Secured Debt Agreement” shall mean (i) this Agreement and (ii) the other Loan Documents.

     “Secured Obligations” shall mean (a) the Obligations and (b) the due and punctual payment and
performance of all obligations of the Borrowers and the other Loan Parties under each Hedging
Agreement entered into with any counterparty that is a Secured Party.

     “Secured Parties” shall mean, collectively, the Administrative Agent, the Collateral Agent,
the Administrative Agent, any Receiver or Delegate, each other Agent, the Lenders and each
counterparty to a Hedging Agreement with a Loan Party, if at the date of entering into such

	 	 	 
	 
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Hedging Agreement (or, with respect to Hedging Agreements in effect at the date hereof, at the
date hereof) such person was a Lender, Revolving Credit Lender, Arranger or Agent (or an Affiliate
of a Lender, Revolving Credit Lender, Arranger or Agent), and in each case, such person executes
and delivers to the Administrative Agent a letter agreement substantially in the form of
Exhibit Q attached hereto or in such other form as may be acceptable to the Administrative
Agent pursuant to which such person (i) appoints the Collateral Agent as its agent under the
applicable Loan Documents and (ii) agrees to be bound by the provisions of Section 10.03,
Section 10.09, the Intercreditor Agreement and the Security Documents as if it were a
Lender.

     “Securities Act” shall mean the Securities Act of 1933.

     “Securities Collateral” shall mean, collectively, the Pledged Securities, the Pledged
Intercompany Notes and the Distributions.

     “Securitization Assets” means all existing or hereafter acquired or arising (i) Receivables
that are sold, assigned or otherwise transferred pursuant to a Securitization Facility, (ii) the
Related Security with respect to the Receivables referred to in clause (i) above, (iii) the
collections and proceeds of the Receivables and Related Security referred to in clauses (i) and
(ii) above, (iv) all lockboxes, lockbox accounts, collection accounts or other deposit accounts
into which such collections are deposited (and in any event excluding any lockboxes, lockbox
accounts, collection accounts or deposit accounts that any Loan Party or any Company organized
under the laws of Germany has an interest in) and which have been specifically identified and
consented to by the Administrative Agent, and (v) all other rights and payments which relate solely
to such Receivables.

     “Securitization Facility” means each transaction or series of related transactions that effect
the securitization of Receivables of a person; provided that no Receivables or other
property of any Borrower or any Company organized or conducting business in a Principal
Jurisdiction shall be subject to a Securitization Facility.

     “Securitization Subsidiary” means any special purpose financial subsidiary established by a
Company for the sole purpose of consummating one or more Securitization Facilities and in respect
of which no Company (other than a Securitization Subsidiary) has any obligation to maintain or
preserve such Securitization Subsidiary’s financial condition or cause such Securitization
Subsidiary to achieve specified levels of operating results.

     “Security Agreement” shall mean each U.S. Security Agreement, each Canadian Security
Agreement, each U.K. Security Agreement, each Swiss Security Agreement, each German Security
Agreement, each Irish Security Agreement, each Brazilian Security Agreement, and each other
Security Agreement entered into pursuant to Section 5.11(b), individually and collectively,
as the context may require.

     “Security Agreement Collateral” shall mean all property pledged or granted as collateral
pursuant to any Security Agreement (a) on the Closing Date or (b) thereafter pursuant to
Section 5.11.

	 	 	 
	 
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     “Security Documents” shall mean each Security Agreement, the Mortgages, any Security Trust
Deed, and each other security document, deed of trust, charge or pledge agreement delivered in
accordance with applicable local or foreign law to grant a valid, perfected security interest in
any property as collateral for the Secured Obligations, and all UCC or other financing statements
or financing change statements, control agreements, bailee notification letters, or instruments of
perfection required by this Agreement, any Security Agreement, any Mortgage or any other such
security document, charge or pledge agreement to be filed with respect to the security interests in
property and fixtures created pursuant to any Security Agreement or any Mortgage and any other
document or instrument utilized to pledge or grant or purport to pledge or grant a security
interest or lien on any property as collateral for the Secured Obligations or to perfect, obtain
control over or otherwise protect the interest of the Collateral Agent therein.

     “Security Trust Deed” shall mean any security trust deed to be executed by, among others, the
Collateral Agent, the Administrative Agent and any Loan Party granting security over U.K. or Irish
assets of any Loan Party.

     “Senior Note Agreement” shall mean the indenture dated as of February 3, 2005, pursuant to
which the Senior Notes were issued and any other indenture, note purchase agreement or other
agreement pursuant to which Senior Notes are issued in a Permitted Refinancing of the Senior Notes.

     “Senior Note Documents” shall mean the Senior Notes, the Senior Note Agreement, the Senior
Note Guarantees and all other documents executed and delivered with respect to the Senior Notes or
the Senior Note Agreement.

     “Senior Note Guarantees” shall mean the guarantees of the Loan Parties (other than Holdings)
and the other guarantors pursuant to the Senior Note Agreement.

     “Senior Notes” shall mean Canadian Borrower’s 7-1/4% Senior Notes due 2015 issued pursuant to
the Senior Note Agreement and any senior notes issued pursuant to a Permitted Refinancing of the
Senior Notes (including the registered notes issued in exchange for Senior Notes with substantially
identical terms as the Senior Notes so exchanged).

     “Senior Secured Leverage Ratio” shall mean, at any date of determination, the ratio of
Consolidated Senior Secured Indebtedness on such date to Consolidated Adjusted EBITDA for the four
consecutive fiscal quarters of Canadian Borrower then last ended (in each case taken as one
accounting period) for which financial statements have been delivered (or if financial statements
with respect to the most recently ended fiscal quarter are required to but, have not been
delivered, for which financial statements are then required to have been delivered).

     “Significant Event of Default” shall mean any Event of Default under Section 8.01(a),
(b), (g) or (h).

     “Similar Business” shall mean any business conducted by Canadian Borrower and the other Loan
Parties on the Closing Date as described in the Confidential Information Memorandum (or, in the
good faith judgment of the Board of Directors, which are substantially related thereto or are
reasonable extensions thereof).

	 	 	 
	 
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     “Specified Holders” shall mean the Persons listed on Schedule 1.01(e).

     “Spot Selling Rate” shall mean, on any date of determination, the spot selling rate determined
by the Administrative Agent which shall be the spot selling rate posted by Reuters on its website
for the sale of the applicable currency for Dollars at approximately 5:00 p.m. (New York City time)
on the prior Business Day; provided that if such rate is not available, such rate shall be
the spot selling rate posted by the Federal Reserve Bank of New York on its website for the sale of
the applicable currency for Dollars at approximately 5:00 p.m. (New York City time) on the prior
Business Day.

     “Statutory Reserves” shall mean, for any Interest Period for any Eurocurrency Borrowing in
dollars, the average maximum rate at which reserves (including any marginal, supplemental or
emergency reserves) are required to be maintained during such Interest Period under Regulation D by
member banks of the United States Federal Reserve System in New York City with deposits exceeding
one billion dollars against “Eurocurrency liabilities” (as such term is used in Regulation D).
Eurocurrency Borrowings shall be deemed to constitute Eurocurrency liabilities and to be subject to
such reserve requirements without benefit of or credit for proration, exceptions or offsets which
may be available from time to time to any Lender under Regulation D.

     “Subordinated Debt Loan” shall mean that certain loan extended by AV Metals to Holdings in the
aggregate principal amount of $900,000,000, as evidenced by the Promissory Note, dated May 15,
2007, made by Holdings in favor of AV Metals, as such loan may be increased by any Additional
Subordinated Debt Loan or amended, in each case, in accordance with the terms hereof;
provided that to the extent the provisions of the definition of Permitted Holdings
Amalgamation are complied with, the Subordinated Debt Loan in effect on the Closing Date and any
Additional Subordinated Debt Loan incurred after the Closing Date and prior to the date of the
Permitted Holdings Amalgamation may become an obligation of the Canadian Borrower after the
Permitted Holdings Amalgamation occurs; and provided, further, that all other
Subordinated Debt Loans, if any, shall at all times be and remain unsecured obligations solely of
Holdings.

     “Subordinated Indebtedness” shall mean Indebtedness of a Loan Party that is subordinated by
its terms (including pursuant to the terms of any subordination agreement, intercreditor agreement,
or otherwise) in right of payment to the Obligations of such Loan Party, including the Subordinated
Debt Loan.

     “Subsidiary” shall mean, with respect to any person (the “parent”) at any date, (i) any person
the accounts of which would be consolidated with those of the parent in the parent’s consolidated
financial statements if such financial statements were prepared in accordance with GAAP as of such
date, (ii) any other corporation, limited liability company, association or other business entity
of which securities or other ownership interests representing more than 50% of the voting power of
all Equity Interests entitled (without regard to the occurrence of any contingency) to vote in the
election of the Board of Directors thereof are, as of such date, owned, controlled or held by the
parent and/or one or more subsidiaries of the parent, (iii) any partnership (a) the sole general
partner or the managing general partner of which is the parent and/or one or more subsidiaries of
the parent or (b) the only general partners of which are the

	 	 	 
	 
	 	48

 

 

parent and/or one or more subsidiaries of the parent and (iv) any other person that is
otherwise Controlled by the parent and/or one or more subsidiaries of the parent. Unless the
context requires otherwise, “Subsidiary” refers to a Subsidiary of Holdings. Notwithstanding the
foregoing, Logan shall not be treated as a Subsidiary hereunder or under the other Loan Documents
unless it qualifies as a Subsidiary under clause (ii) of this definition.

     “Subsidiary Guarantor” shall mean each Subsidiary listed on Schedule 1.01(b), and each
other Subsidiary that is or becomes a party to this Agreement as a Subsidiary Guarantor pursuant to
Section 5.11.

     “Survey” shall mean a survey of any Mortgaged Property (and all improvements thereon) which is
(a) (i) prepared by a surveyor or engineer licensed to perform surveys in the jurisdiction where
such Mortgaged Property is located, (ii) current as of a date which shows all exterior construction
on the site of such Mortgaged Property or any easement, right of way or other interest in the
Mortgaged Property has been granted or become effective through operation of law or otherwise with
respect to such Mortgaged Property which, in either case, can be depicted on a survey, unless
otherwise acceptable to the Collateral Agent, (iii) certified by the surveyor (in a manner
reasonably acceptable to the Administrative Agent) to the Administrative Agent, the Collateral
Agent and the Title Company, (iv) complying in all respects with the minimum detail requirements of
the American Land Title Association (or the local equivalent) as such requirements are in effect on
the date of preparation of such survey and (v) sufficient for the Title Company to remove all
standard survey exceptions from the title insurance policy (or commitment) relating to such
Mortgaged Property and issue the endorsements of the type required by Section 4.01(o)(iii)
or (b) otherwise acceptable to the Collateral Agent.

     “Swiss Guarantor” shall mean each Subsidiary of Holdings organized in Switzerland party hereto
as a Guarantor, and each other Subsidiary of Holdings organized in Switzerland that is required to
become a Guarantor pursuant to the terms hereof.

     “Swiss Security Agreement” shall mean, collectively, any Security Agreement substantially in
the form of Exhibits M-4-1 to 7 among the Swiss Guarantors and the Collateral Agent
for the benefit of the Secured Parties.

     “Swiss Withholding Tax” shall mean any withholding tax in accordance with the Swiss Federal
Statute on Anticipatory Tax of 13 October 1965 (Bundesgesetz uber die Verrechnungssteuer) and any
successor provision, as appropriate.

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

     “Tax Return” shall mean all returns, statements, filings, attachments and other documents or
certifications required to be filed in respect of Taxes.

     “Taxes” shall mean all present or future taxes, levies, imposts, duties, deductions,
withholdings, payroll, social security, employment and unemployment taxes, assessments, fees or
other charges imposed by any Taxing Authority, including any interest, additions to tax or
penalties applicable thereto.

	 	 	 
	 
	 	49

 

 

     “Taxing Authority” shall mean any governmental entity of any jurisdiction or political
subdivision thereof with the authority to impose, assess, and collect Taxes and engage in
activities of a similar nature with respect to such Taxing Authority.

     “Term Loans” shall have the meaning assigned to such term in Section 2.01(b).

     “Term Loan Commitments” shall mean the Canadian Term Loan Commitments and the U.S. Term Loan
Commitments, collectively.

     “Term Loan Priority Collateral” shall mean all “Term Loan Priority Collateral” as defined in
the Intercreditor Agreement.

     “Term Loan Repayment Date” shall have the meaning assigned to such term in Section
2.09.

     “Test Period” shall mean, at any time, the four consecutive fiscal quarters of Canadian
Borrower then last ended (in each case taken as one accounting period).

     “Title Company” shall mean any title insurance company as shall be retained by Borrower and
reasonably acceptable to the Administrative Agent.

     “Title Policy” shall have the meaning assigned to such term in Section 4.01(o)(iii).

     “Transaction Documents” shall mean the Loan Documents (other than Hedging Agreements) and the
Revolving Credit Loan Documents.

     “Transactions” shall mean, collectively, the transactions to occur on or prior to the Closing
Date pursuant to the Transaction Documents, including (a) the execution, delivery and performance
of the Loan Documents and the initial borrowings hereunder; (b) the Refinancing; (c) the execution,
delivery and performance of the Revolving Credit Loan Documents and the borrowings thereunder; and
(d) the payment of all fees and expenses to be paid on or prior to the Closing Date and owing in
connection with the foregoing.

     “Transferred Guarantor” shall have the meaning assigned to such term in Section 7.09.

     “Type,” when used in reference to any Loan or Borrowing, refers to whether the rate of
interest on such Loan, or on the Loans comprising such Borrowing, is determined by reference to the
Adjusted LIBOR Rate or the Alternate Base Rate.

     “UCC” shall mean the Uniform Commercial Code as in effect from time to time (except as
otherwise specified) in any applicable state or jurisdiction.

     “U.K. Guarantor” shall mean each Subsidiary of Holdings incorporated in England and Wales
party hereto as a Guarantor, and each other Subsidiary of Holdings incorporated in England and
Wales that is required to become a Guarantor pursuant to the terms hereof.

	 	 	 
	 
	 	50

 

 

     “U.K. Security Agreement” shall mean, collectively, any Security Agreement substantially in
the form of Exhibits M-3-1 to 3 among the U.K. Guarantors and the Collateral Agent
for the benefit of the Secured Parties, including the U.K. Share Charge.

     “U.K. Share Charge” shall mean shall mean a Security Agreement in substantially the form of
Exhibit M-3-2, among Canadian Borrower and the Collateral Agent.

     “United States” shall mean the United States of America.

     “Unrestricted Grantors” shall mean Loan Parties that are not Restricted Grantors.

     “U.S. Borrower” shall have the meaning assigned to such term in the preamble hereto.

     “U.S. Guarantor” shall mean each Subsidiary of Holdings organized in the United States, any
state thereof or the District of Columbia, party hereto as a Guarantor, and each other Subsidiary
of Holdings organized in the United States, any state thereof or the District of Columbia that is
required to become a Guarantor pursuant to the terms hereof.

     “U.S. Loan Parties” shall mean the U.S. Borrower and the U.S. Guarantors.

     “U.S. Security Agreement” shall mean a Security Agreement substantially in the form of
Exhibit M-1 among Canadian Borrower, the U.S. Loan Parties and the Collateral Agent for the
benefit of the Secured Parties.

     “U.S. Term Loan” shall have the meaning assigned to such term in Section 2.01(a).

     “U.S. Term Loan Commitment” shall mean shall mean, with respect to each Lender, the
commitment, if any, of such Lender to make U.S. Term Loans hereunder up to the amount set forth on
Schedule I to the Lender Addendum executed and delivered by such Lender directly under the column
entitled “U.S. Term Loan Commitment” or in an Increase Joinder. The aggregate amount of the
Lenders’ U.S. Term Loan Commitments on the Closing Date is $660 million.

     “Voting Stock” shall mean, with respect to any person, any class or classes of Equity
Interests pursuant to which the holders thereof have the general voting power under ordinary
circumstances to elect at least a majority of the Board of Directors of such person.

     “Weighted Average Life to Maturity” shall mean, when applied to any Indebtedness at any date,
the number of years obtained by dividing: (a) the sum of the products obtained by multiplying (i)
the amount of each then remaining installment, sinking fund, serial maturity or other required
payments of principal, including payment at final maturity, in respect thereof, by (ii) the
number of years (calculated to the nearest one-twelfth) that will elapse between such date and the
making of such payment; by (b) the then outstanding principal amount of such Indebtedness.

     “Wholly Owned Subsidiary” shall mean, as to any person, (a) any corporation 100% of whose
capital stock (other than directors’ qualifying shares) is at the time owned by such person and/or
one or more Wholly Owned Subsidiaries of such person and (b) any partnership,

	 	 	 
	 
	 	51

 

 

association, joint venture, limited liability company or other entity in which such person
and/or one or more Wholly Owned Subsidiaries of such person have a 100% equity interest at such
time.

     “Wind-Up” shall have the meaning assigned to such term in Section 6.05(g), and the
term “Winding-Up” shall have a meaning correlative thereto.

     “Withdrawal Liability” shall mean liability to a Multiemployer Plan as a result of a complete
or partial withdrawal from such Multiemployer Plan, as such terms are defined in Part I of Subtitle
E of Title IV of ERISA.

     “525 Amortization Amount” shall have the meaning assigned to such term in Section
2.09(b).

     “525 Catch-Up Date” shall mean, with respect to any Loan, the date that is five (5) years plus
a day following the date of borrowing thereof.

     “525 Collateral Account” shall have the meaning assigned to such term in Section
2.09(b).

     “525 Prepayment Amount” shall have the meaning assigned to such term in Section
2.10(h)(vi).

SECTION 1.02 Classification of Loans and Borrowings. For purposes of this Agreement, Loans may be
classified and referred to by Class (e.g., a “U.S. Term Loan” or a “Canadian Term Loan”) or by Type
(e.g., a “Eurocurrency Loan”) or by Class and Type (e.g., a “Eurocurrency U.S. Term Loan” or
“Eurocurrency Canadian Term Loan”). Borrowings also may be classified and referred to by Class
(e.g., a “U.S. Term Loan Borrowing”) or by Type (e.g., a “Eurocurrency Borrowing”) or by Class and
Type (e.g., a “Eurocurrency U.S. Term Loan Borrowing”).

SECTION 1.03 Terms Generally; Currency Translation. The definitions of terms herein shall apply
equally to 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. The words
“include,” “includes” and “including” shall be deemed to be followed by the phrase “without
limitation.” The word “will” shall be construed to have the same meaning and effect as the word
“shall.” Unless the context requires otherwise (a) any definition of or reference to any Loan
Document, agreement, instrument or other document herein shall be construed as referring to such
agreement, instrument or other document as from time to time amended, supplemented or otherwise
modified (subject to any restrictions on such amendments, supplements or modifications set forth
herein), (b) any reference herein to any person shall be construed to include such person’s
successors and assigns, (c) the words “herein,” “hereof” and “hereunder,” and words of similar
import, shall be construed to refer to this Agreement in its entirety and not to any particular
provision hereof, (d) all references herein to Articles, Sections, Exhibits and Schedules shall be
construed to refer to Articles and Sections of, and Exhibits and Schedules to, this Agreement, (e)
any reference to any law or regulation herein shall refer to such law or regulation as
amended, modified or supplemented from time to time, (f) the words “asset” and “property” shall be
construed to have the same meaning and effect and to refer to any and all

	 	 	 
	 
	 	52

 

 

tangible and intangible assets and properties, including cash, securities, accounts and contract rights and (g) “on,” when
used with respect to the Mortgaged Property or any property adjacent to the Mortgaged Property,
means “on, in, under, above or about.” For purposes of this Agreement and the other Loan
Documents, where the permissibility of a transaction or determinations of required actions or
circumstances depend upon compliance with, or are determined by reference to, amounts stated in
dollars, such amounts shall be deemed to refer to Dollars or Dollar Equivalents and any requisite
currency translation shall be based on the Spot Selling Rate in effect on the Business Day
immediately preceding the date of such transaction or determination and the permissibility of
actions taken under Article VI shall not be affected by subsequent fluctuations in exchange
rates (provided that if Indebtedness is incurred to refinance other Indebtedness, and such
refinancing would cause the applicable dollar denominated limitation to be exceeded if calculated
at the Spot Selling Rate in effect on the Business Day immediately preceding the date of such
refinancing, such dollar denominated restriction shall be deemed not to have been exceeded so long
as (x) such refinancing Indebtedness is denominated in the same currency as such Indebtedness being
refinanced and (y) the principal amount of such refinancing Indebtedness does not exceed the
principal amount of such Indebtedness being refinanced except as permitted by the definition of
Permitted Refinancing Indebtedness). For purposes of this Agreement and the other Loan Documents,
the word “foreign” shall refer to jurisdictions other than the United States, the states thereof
and the District of Columbia. From and after the effectiveness of the Permitted Holdings
Amalgamation (x) all references to Canadian Borrower in any Loan Document shall refer to the
Successor Canadian Borrower and (y) all references to Holdings or Parent Guarantor in any Loan
Document shall refer to AV Metals.

SECTION 1.04 Accounting Terms; GAAP. Except as otherwise expressly provided herein, all financial
statements to be delivered pursuant to this Agreement shall be prepared in accordance with GAAP as
in effect from time to time and all terms of an accounting or financial nature shall be construed
and interpreted in accordance with GAAP, as in effect from time to time unless otherwise agreed to
by Administrative Borrower and the Required Lenders; provided that (i) if at any time any
change in GAAP would affect the computation of any financial ratio or requirement set forth in any
Loan Document, and either Administrative Borrower or the Required Lenders shall so request, the
Administrative Agent, the Lenders and Administrative Borrower shall negotiate in good faith to
amend such ratio or requirement to preserve the original intent thereof in light of such change in
GAAP (subject to the approval of the Required Lenders); provided that, until so amended,
(i) such ratio or requirement shall continue to be computed in accordance with GAAP prior to such
change therein and (ii) Administrative Borrower shall provide to the Administrative Agent and the
Lenders any documents required under this Agreement or as reasonably requested hereunder setting
forth a reconciliation between calculations of such ratio or requirement made before and after
giving effect to such change in GAAP.

SECTION 1.05 Resolution of Drafting Ambiguities. Each Loan Party acknowledges and agrees that it was represented by counsel in connection
with the execution and delivery of the Loan Documents to which it is a party, that it and its
counsel reviewed and participated in the preparation and negotiation hereof and thereof and that
any rule of construction to the effect that ambiguities are to be resolved against the drafting
party shall not be employed in the interpretation hereof or thereof.

	 	 	 
	 
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ARTICLE II.

THE CREDITS

SECTION 2.01 Commitments.

     (a) Subject to the terms and conditions and relying upon the representations and warranties
herein set forth, each Lender with a U.S. Term Loan Commitment agrees, severally and not jointly,
to make a Term Loan in Dollars to the U.S. Borrower (each, a “U.S. Term Loan”) on the Closing Date
in the principal amount not to exceed its U.S. Term Loan Commitment.

     (b) Subject to the terms and conditions and relying upon the representations and warranties
herein set forth, each Lender with a Canadian Term Loan Commitment agrees, severally and not
jointly, to make a Term Loan in Dollars to Canadian Borrower (each, a “Canadian Term Loan” and,
together with the U.S. Term Loans, the “Term Loans” and each being called a “Term Loan”) on the
Closing Date in the principal amount not to exceed its Canadian Term Loan Commitment.

     (c) Amounts paid or prepaid in respect of Term Loans may not be reborrowed.

SECTION 2.02 Loans.

     (a) Each Loan shall be made as part of a Borrowing consisting of Loans made by the Lenders
ratably in accordance with their applicable Commitments; provided that the failure of any
Lender to make its Loan shall not in itself relieve any other Lender of its obligation to lend
hereunder (it being understood, however, that no Lender shall be responsible for the failure of any
other Lender to make any Loan required to be made by such other Lender). Each Borrowing shall be
in an aggregate principal amount that is not less than (and in integral amounts consistent with)
the Minimum Amount.

     (b) Subject to Section 2.11 and Section 2.12, each Borrowing shall be
comprised entirely of ABR Loans or Eurocurrency Loans as Administrative Borrower may request
pursuant to Section 2.03; provided that all Loans comprising the same Borrowing
shall at all times be of the same Type. Each Lender may at its option make any Eurocurrency Loan
by causing any domestic or foreign branch or Affiliate of such Lender to make such Loan;
provided that any exercise of such option shall not affect the obligation of the applicable
Borrower to repay such Loan in accordance with the terms of this Agreement. Borrowings of more
than one Type may be outstanding at the same time; provided that Borrower shall not be
entitled to request any Borrowing that, if made, would result in more than eight (8) Eurocurrency
Borrowings of U.S. Term Loans or more than four (4) Eurocurrency Borrowings of Canadian Term Loans
outstanding hereunder at any one time. For purposes of the foregoing, Borrowings having
different Interest Periods, regardless of whether they commence on the same date, shall be
considered separate Borrowings.

     (c) Each Lender shall make each Loan to be made by it hereunder on the proposed date thereof
by wire transfer of immediately available funds to such account in New York City as the
Administrative Agent may designate not later than 11:00 a.m., New York City time, and the

	 	 	 
	 
	 	54

 

 

Administrative Agent shall promptly credit the amounts so received to an account of the applicable
Borrower as directed by Administrative Borrower in the applicable Borrowing Request maintained with
the Administrative Agent or, if a Borrowing shall not occur on such date because any condition
precedent herein specified shall not have been met, return the amounts so received to the
respective Lenders.

     (d) Unless the Administrative Agent shall have received notice from a Lender prior to the date
of any Borrowing that such Lender will not make available to the Administrative Agent such Lender’s
portion of such Borrowing, the Administrative Agent may assume that such Lender has made such
portion available to the Administrative Agent on the date of such Borrowing in accordance with
paragraph (c) above, and the Administrative Agent may, in reliance upon such assumption, make
available to the applicable Borrower on such date a corresponding amount. If the Administrative
Agent shall have so made funds available, then, to the extent that such Lender shall not have made
such portion available to the Administrative Agent, each of such Lender and such Borrower severally
agrees to repay to the Administrative Agent forthwith on demand such corresponding amount together
with interest thereon, for each day from the date such amount is made available to such Borrower
until the date such amount is repaid to the Administrative Agent at (i) in the case of such
Borrower, the interest rate applicable at the time to the Loans comprising such Borrowing and (ii)
in the case of such Lender, the greater of the Interbank Rate and a rate determined by the
Administrative Agent in accordance with banking industry rules on interbank compensation. If such
Lender shall repay to the Administrative Agent such corresponding amount, such amount shall
constitute such Lender’s Loan as part of such Borrowing for purposes of this Agreement, and the
applicable Borrower’s obligation to repay the Administrative Agent such corresponding amount
pursuant to this Section 2.02(d) shall cease.

     (e) Notwithstanding anything to the contrary contained herein, no Borrower shall be entitled
to request, or to elect to convert or continue, any Borrowing if the Interest Period requested with
respect thereto would end after the Final Maturity Date.

SECTION 2.03 Borrowing Procedure.

     (a) To request a Borrowing, Administrative Borrower, on behalf of the applicable Borrower,
shall deliver, by hand delivery, telecopier or, to the extent separately agreed by the
Administrative Agent, by an electronic communication in accordance with the second sentence of
Section 11.01(b) and the second paragraph of Section 11.01(d), a duly completed and
executed Borrowing Request to the Administrative Agent (i) in the case of a Eurocurrency Borrowing,
not later than 11:00 a.m., New York City time, three (3) Business Days before the date of the
proposed Borrowing, or (ii) in the case of an ABR Borrowing, not later than 9:00
a.m., New York City time, on the date of the proposed Borrowing. Each Borrowing Request shall
be irrevocable and shall specify the following information in compliance with Section 2.02:

     (i) the aggregate amount of such Borrowing;

     (ii) the date of such Borrowing, which shall be a Business Day;

	 	 	 
	 
	 	55

 

 

     (iii) whether such Borrowing shall constitute a Borrowing of U.S. Term Loans or Canadian Term
Loans;

     (iv) whether such Borrowing is to be an ABR Borrowing or a Eurocurrency Borrowing;

     (v) in the case of a Eurocurrency Borrowing, the initial Interest Period to be applicable
thereto, which shall be a period contemplated by the definition of the term “Interest Period”;

     (vi) the location and number of the applicable Borrower’s account to which funds are to be
disbursed, which shall comply with the requirements of Section 2.02(c);

     (vii) in the case of the initial Credit Extension hereunder or under any Incremental Term Loan
Commitments, that the conditions set forth in Section 4.02(b) — (d) have been satisfied as
of the date of the notice.

     If no election as to the Type of Borrowing is specified, then the requested Borrowing shall be
an ABR Borrowing. If no Interest Period is specified with respect to any requested Eurocurrency
Borrowing, then Administrative Borrower on behalf of the applicable Borrower shall be deemed to
have selected an Interest Period of one month’s duration. Promptly following receipt of a
Borrowing Request in accordance with this Section, the Administrative Agent shall advise each
applicable Lender of the details thereof and of the amount of such Lender’s Loan to be made as part
of the requested Borrowing.

     (b) Appointment of Administrative Borrower. Each Borrower hereby irrevocably appoints
and constitutes Administrative Borrower as its agent to request Loans pursuant to this Agreement in
the name or on behalf of such Borrower. The Administrative Agent and Lenders may disburse the
Loans to such bank account of Administrative Borrower or a Borrower or otherwise make such Loans to
a Borrower as Administrative Borrower may designate or direct, without notice to any other Borrower
or Guarantor. Administrative Borrower hereby accepts the appointment by Borrowers to act as the
agent of Borrowers and agrees to ensure that the disbursement of any Loans to a Borrower requested
by or paid to or for the account of such Borrower shall be paid to or for the account of such
Borrower. Each Borrower hereby irrevocably appoints and constitutes Administrative Borrower as its
agent to receive statements on account and all other notices from the Agents and Lenders with
respect to the Obligations or otherwise under or in connection with this Agreement and the other
Loan Documents, including the Intercreditor Agreement. Any notice, election, representation,
warranty, agreement or undertaking by or on behalf of any other Borrower by Administrative Borrower
shall be deemed for all purposes to have been made by such Borrower, as the case may be, and shall
be binding upon and enforceable against such Borrower to the same extent as if made directly by
such
Borrower. No purported termination of the appointment of Administrative Borrower as agent as
aforesaid shall be effective, except after ten (10) days’ prior written notice to the
Administrative Agent and appointment by the Borrowers of a replacement Administrative Borrower.

SECTION 2.04 Repayment of Loans; Evidence of Debt.

	 	 	 
	 
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     (a) Promise to Repay. The U.S. Borrower hereby unconditionally promises to pay to the
Administrative Agent, for the account of each applicable Lender, the then unpaid principal amount
of each U.S. Term Loan of such Lender on the Final Maturity Date. Canadian Borrower hereby
unconditionally promises to pay to the Administrative Agent, for the account of each applicable
Lender, the then unpaid principal amount of each Canadian Term Loan of such Lender on the Final
Maturity Date. All payments or repayments of Loans made pursuant to this Section 2.04(a)
shall be made in Dollars.

     (b) Lender and Administrative Agent Records. Each Lender shall maintain in accordance
with its usual practice an account or accounts evidencing the Indebtedness of each Borrower to such
Lender resulting from each Loan made by such Lender from time to time, including the amounts of
principal and interest payable and paid to such Lender from time to time under this Agreement. The
Administrative Agent shall maintain accounts in which it will record (i) the amount of each Loan
made hereunder, the Borrower to which such Loan is made, the Type and Class thereof and the
Interest Period applicable thereto; (ii) the amount of any principal or interest due and payable or
to become due and payable from each Borrower to each Lender hereunder; and (iii) the amount of any
sum received by the Administrative Agent hereunder for the account of the Lenders and each Lender’s
share thereof. The entries made in the accounts maintained pursuant to this paragraph shall be
prima facie evidence of the existence and amounts of the obligations therein recorded as well as
the Borrower which received such Loans; provided that the failure of any Lender or the
Administrative Agent to maintain such accounts or any error therein shall not in any manner affect
the obligations of any Borrower to repay the Loans in accordance with their terms.

     (c) Promissory Notes. Any Lender by written notice to Administrative Borrower (with a
copy to the Administrative Agent) may request that Loans of any Class made by it be evidenced by a
promissory note. In such event, the applicable Borrower or Borrowers shall prepare, execute and
deliver to such Lender one or more promissory notes payable to such Lender or its registered
assigns in the form of Exhibit K-1 or K-2, as the case may be. Thereafter, the
Loans evidenced by such promissory note and interest thereon shall at all times (including after
assignment pursuant to Section 11.04) be represented by one or more promissory notes in
such form payable to such payee or its registered assigns.

SECTION 2.05 Fees.

     (a) Fees. Canadian Borrower agrees to pay or to cause the applicable Borrower to pay
all Fees payable pursuant to the Fee Letter, in the amounts and on the dates set forth therein.

     (b) All Fees shall be paid on the dates due, in immediately available funds in dollars, to the
Administrative Agent. Once paid, none of the Fees shall be refundable under any circumstances.

SECTION 2.06 Interest on Loans.

     (a) ABR Loans. Subject to the provisions of Section 2.06(c), the Loans
comprising each ABR Borrowing shall bear interest at a rate per annum equal to the Alternate Base
Rate plus the Applicable Margin in effect from time to time.

	 	 	 
	 
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     (b) Eurocurrency Loans. Subject to the provisions of Section 2.06(c), the
Loans comprising each Eurocurrency Borrowing shall bear interest at a rate per annum equal to the
Adjusted LIBOR Rate for the Interest Period in effect for such Borrowing plus the
Applicable Margin in effect from time to time.

     (c) Default Rate. Notwithstanding the foregoing, if at any time any principal of or
interest on any Loan or any fee or other amount payable by the Loan Parties hereunder has not been
paid when due, whether at stated maturity, upon acceleration or otherwise and for so long as such
amounts have not been paid, all Obligations shall, to the extent permitted by applicable law, bear
interest, after as well as before judgment, at a per annum rate equal to (i) in the case of
principal of or interest on any Loan, 2% plus the rate otherwise applicable to such Loan as
provided in the preceding paragraphs of this Section 2.06 or (ii) in the case of any other
amount, 2% plus the rate applicable to ABR Loans as provided in Section 2.06(a) (in
either case, the “Default Rate”).

     (d) Interest Payment Dates. Accrued interest on each Loan shall be payable in arrears
on each Interest Payment Date for such Loan; provided that (i) interest accrued pursuant to
Section 2.06(c) shall be payable on demand, (ii) in the event of any repayment or
prepayment of any Loan, accrued interest on the principal amount repaid or prepaid shall be payable
on the date of such repayment or prepayment and (iii) in the event of any conversion of any
Eurocurrency Loan prior to the end of the current Interest Period therefor, accrued interest on
such Loan shall be payable on the effective date of such conversion.

     (e) Interest Calculation. All interest hereunder shall be computed on the basis of a
year of 360 days, except that interest computed by reference to the Alternate Base Rate shall be
computed on the basis of a year of 365 days (or 366 days in a leap year) and, in each case, shall
be payable for the actual number of days elapsed (including the first day but excluding the last
day). The applicable Alternate Base Rate or Adjusted LIBOR Rate shall be determined by the
Administrative Agent in accordance with the provisions of this Agreement and such determination
shall be conclusive absent manifest error.

     (f) Currency for Payment of Interest. All interest paid or payable pursuant to this
Section 2.06 shall be paid in Dollars.

SECTION 2.07 Termination of Commitments. The Term Loan Commitments shall automatically terminate at 5:00 p.m., New York City time,
on the Closing Date.

SECTION 2.08 Interest Elections.

     (a) Generally. Each Borrowing initially shall be of the Type specified in the
applicable Borrowing Request and, in the case of a Eurocurrency Borrowing, shall have an initial
Interest Period as specified in such Borrowing Request. Thereafter, Administrative Borrower may
elect to convert such Borrowing to an ABR Borrowing or to rollover or continue such Borrowing and,
in the case of a Eurocurrency Borrowing, may elect Interest Periods therefor, all as provided in
this Section. Administrative Borrower may elect different options with respect to different
portions (not less than the Minimum Amount) of the affected Borrowing, in which case each such
portion shall be allocated ratably among the Lenders holding the Loans comprising

	 	 	 
	 
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such Borrowing,
and the Loans comprising
each such portion shall be considered a separate Borrowing.
Notwithstanding anything to the contrary, Borrowers shall not be entitled to request any
conversion, rollover or continuation that, if made, would result in more than eight (8)
Eurocurrency Borrowings of U.S. Term Loans or more than four (4) Eurocurrency Borrowings of
Canadian Term Loans outstanding hereunder at any one time.

     (b) Interest Election Notice. To make an election pursuant to this Section,
Administrative Borrower shall deliver, by hand delivery or telecopier, a duly completed and
executed Interest Election Request to the Administrative Agent not later than the time that a
Borrowing Request would be required under Section 2.03 if Administrative Borrower were
requesting a Borrowing of the Type resulting from such election to be made on the effective date of
such election. Each Interest Election Request shall be irrevocable. Each Interest Election
Request shall specify the following information in compliance with Section 2.02:

     (i) the Borrowing to which such Interest Election Request applies and, if different options
are being elected with respect to different portions thereof, or if outstanding Borrowings are
being combined, allocation to each resulting Borrowing (in which case the information to be
specified pursuant to clauses (iii) and (iv) below shall be specified for each resulting
Borrowing);

     (ii) the effective date of the election made pursuant to such Interest Election Request, which
shall be a Business Day;

     (iii) whether such Borrowing is to be an ABR Borrowing or a Eurocurrency Borrowing;

     (iv) if the resulting Borrowing is a Eurocurrency Borrowing, the Interest Period to be
applicable thereto after giving effect to such election, which shall be a period contemplated, as
applicable, by the definition of the term “Interest Period”.

     If any such Interest Election Request requests a Eurocurrency Borrowing but does not specify
an Interest Period, then applicable Borrower shall be deemed to have selected an Interest Period of
one month’s duration.

     Promptly following receipt of an Interest Election Request, the Administrative Agent shall
advise each Lender of the details thereof and of such Lender’s portion of each resulting Borrowing.

     (c) Automatic Conversion to ABR Borrowings. If an Interest Election Request with
respect to a Eurocurrency Borrowing is not timely delivered prior to the end of the Interest Period
applicable thereto, then, unless such Borrowing is repaid as provided herein, at the end of such
Interest Period such Borrowing shall be converted to an ABR Borrowing. Notwithstanding any
contrary provision hereof, if an Event of Default has occurred and is continuing, the
Administrative Agent or the Required Lenders may require, by notice to Administrative Borrower,
that (i) no outstanding Borrowing may be converted to or continued as a Eurocurrency Borrowing and
(ii) unless repaid, each Eurocurrency Borrowing shall be converted to an ABR Borrowing at the end
of the Interest Period applicable thereto.

	 	 	 
	 
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SECTION 2.09 Amortization of Term Loan Borrowings.

     (a) U.S. Borrower shall pay to the Administrative Agent, for the account of the Lenders, on
the dates set forth on Annex II, or if any such date is not a Business Day, on the
immediately preceding Business Day (each such date, a “Term Loan Repayment Date”), a principal
amount of the U.S. Term Loans equal to the amount set forth on Annex II for such date (as
adjusted from time to time pursuant to Section 2.10(h)), together in each case with accrued
and unpaid interest on the principal amount to be paid to but excluding the date of such payment.
Canadian Borrower shall pay to the Administrative Agent, for the account of the Lenders, on each
Term Loan Repayment Date, a principal amount of the Canadian Term Loans equal to the amount set
forth on Annex II for such date (as adjusted from time to time pursuant to Section
2.10(h)), together in each case with accrued and unpaid interest on the principal amount to be
paid to but excluding the date of such payment.

     (b) Notwithstanding the foregoing provisions of this Section 2.09, if any scheduled
repayment of Canadian Term Loans required under this Section 2.09 (together with the
aggregate amount of all prior (x) prepayments of Canadian Term Loans made pursuant to Section
2.10(d), (e) and (g), and Section 2.10(c) (to the extent arising from
an Asset Sale of the type described in clause (b) of the definition thereof), and (y) scheduled
repayments of Canadian Term Loans made pursuant to this Section 2.09) would result in more
than 25.0% of the original outstanding principal amount of the Canadian Term Loans borrowed on any
date being repaid on or before the applicable 525 Catch-Up Date, then, solely to the extent
necessary to avoid such repayment within such time period, such repayment amount (a “525
Amortization Amount”) shall be applied first, to the prepayment of the U.S. Term Loans in
accordance with clauses (iii) through (vi) of Section 2.10(h) and second, if no U.S. Term
Loans are then outstanding, deposited in the 525 Collateral Account and applied in accordance with
Section 2.10(j) on the first day following the 525 Catch-Up Date. The term “525 Collateral
Account” shall mean a cash collateral account established with a financial institution reasonably
satisfactory to the Administrative Agent (which shall not be a Lender or an Affiliate of a Lender)
on terms and conditions (and subject to a Control Agreement) reasonably satisfactory to the
Administrative Agent and will be subject to a First Priority security interest in favor of the
Collateral Agent for the ratable benefit
of the Secured Parties to secure the Obligations. Beneficial ownership of all funds held in
the Prepayment Collateral Account will remain with Canadian Borrower and Canadian Borrower shall at
all times be entitled to access such funds solely for purposes of (i) optional prepayments of
Canadian Term Loans in accordance with Section 2.10(a), (ii) mandatory prepayments of
Canadian Term Loans in accordance with Section 2.10(j) and (iii) Permitted Uses, and all
gains, losses and income from the investment or use of such funds shall be for the account of, and,
in the case of gains and income, shall be distributed to, Canadian Borrower.

     (c) To the extent not previously paid, all U.S. Term Loans and all Canadian Term Loans shall
be due and payable on the Final Maturity Date.

SECTION 2.10 Optional and Mandatory Prepayments of Loans.

     (a) Optional Prepayments. Borrowers shall have the right at any time and from time to
time to prepay any Borrowing, in whole or in part, subject to the requirements of this Section
2.10; provided that each partial prepayment shall be in a principal amount that is not
less than

	 	 	 
	 
	 	60

 

 

(and in integral amounts consistent with) the Minimum Amount or, if less, the outstanding
principal amount of such Borrowing.

     (b) Net Cash Proceeds Account. Subject to the terms of the Intercreditor Agreement,
the Net Cash Proceeds of any Term Loan Priority Collateral arising from an Asset Sale or Casualty
Event which Net Cash Proceeds are being reinvested in accordance with Sections 2.10(c) or
(f), respectively, shall be deposited in one or more Net Cash Proceeds Accounts pending
final application of such proceeds (and any products of such proceeds) in accordance with the terms
hereof (provided that prior to such final application, and without affecting the Borrowers’
obligations under Sections 2.10(c) and (f), such proceeds may be utilized to make
repayments of the Revolving Credit Loans without reducing Revolving Credit Commitments).

     (c) Asset Sales. Not later than three (3) Business Days following the receipt of any
Net Cash Proceeds of any Asset Sale by Holdings or any of its Subsidiaries, Borrowers shall make
prepayments and prepayment offers in accordance with Section 2.10(h) and (i) in an
aggregate amount equal to 100% of such Net Cash Proceeds; provided that:

          (i) no such prepayment or prepayment offer shall be required under this Section
2.10(c) with respect to (A) any Asset Sale permitted by Section 6.06 other than clauses
(b), (i) and (k) thereof, (B) the disposition of property which constitutes a Casualty Event, or
(C) Asset Sales for fair market value resulting in less than $5 million in Net Cash Proceeds in any
fiscal year; and

          (ii) so long as no Event of Default shall then exist or would arise therefrom, such proceeds
shall not be required to be so applied on such date to the extent that Administrative Borrower
shall have delivered an Officers’ Certificate to the Administrative Agent on or prior to such date
stating that such Net Cash Proceeds are expected to be reinvested in fixed or capital assets or to
make Permitted Acquisitions (and, in the case of Net Cash Proceeds from an Asset Sale made pursuant
to Section 6.06(k), such Net Cash Proceeds may also be used to make investments in joint
ventures so long as a Company owns at least 50% of the
Equity Interests in such joint venture) within 365 days following the date of such Asset Sale
(which Officers’ Certificate shall set forth the estimates of the proceeds to be so expended);
provided that if all or any portion of such Net Cash Proceeds is not so reinvested within
such 365-day period, such unused portion shall be applied on the last day of such period to
mandatory prepayments and prepayment offers as provided in this Section 2.10(c);
provided, further, that if the property subject to such Asset Sale constituted
Collateral, then all property purchased with the Net Cash Proceeds thereof pursuant to this
subsection shall be made subject to the Lien of the applicable Security Documents in favor of the
Collateral Agent, for its benefit and for the benefit of the other Secured Parties in accordance
with Sections 5.11 and 5.12.

     (d) Debt Issuance or Preferred Stock Issuance. Not later than one (1) Business Day
following the receipt of any Net Cash Proceeds of any Debt Issuance or Preferred Stock Issuance by
Holdings or any of its Subsidiaries, Borrowers shall make prepayments in accordance with
Section 2.10(h) and (i) in an aggregate amount equal to 100% of such Net Cash
Proceeds; provided that if, at the time of any such prepayment with the Net Cash Proceeds
of any Preferred Stock Issuance pursuant to this Section 2.10(d) Excess Availability shall
be less than $90 million immediately prior to or after giving effect to such prepayment and all
extensions of credit under

	 	 	 
	 
	 	61

 

 

the Revolving Credit Agreement on such date, such prepayment shall be
applied first, to the repayment of outstandings under the Revolving Credit Agreement until Excess
Availability (after giving effect to all extensions of credit under the Revolving Credit Agreement
on such date) equals $90 million and second, to the extent of any remaining amounts, to make
prepayments in accordance with Sections 2.10(h) and (i).

     (e) Equity Issuance. Not later than three (3) Business Days following the receipt of
any Net Cash Proceeds of any Equity Issuance, Borrowers shall make prepayments in accordance with
Section 2.10(h) and (i) in an aggregate amount equal to 50% of such Net Cash
Proceeds; provided, however, that if on the date of such Equity Issuance, (i) no
Default has occurred and is continuing and (ii) the Senior Secured Leverage Ratio is less than 3.0
to 1.0, then no such prepayment shall be required to be made in respect of such Equity Issuance;
provided, further, that this clause (e) shall not apply to the proceeds of any
Qualified Capital Stock issued by Holdings after the Closing Date to the Acquiror or any of its
Affiliates; and provided, further, that if, at the time of any such prepayment
pursuant to this Section 2.10(e) Excess Availability shall be less than $90 million
immediately prior to or after giving effect to such prepayment and all extensions of credit under
the Revolving Credit Agreement on such date, such prepayment shall be applied first, to the
repayment of outstandings under the Revolving Credit Agreement until Excess Availability (after
giving effect to all extensions of credit under the Revolving Credit Agreement on such date) equals
$90 million and second, to the extent of any remaining amounts, to make prepayments in accordance
with Sections 2.10(h) and (i).

     (f) Casualty Events. Not later than three (3) Business Days following the receipt of
any Net Cash Proceeds from a Casualty Event by Holdings or any of its Subsidiaries, Borrowers shall
make prepayments and prepayment offers in accordance with Section 2.10(h) and (i)
in an aggregate amount equal to 100% of such Net Cash Proceeds; provided that:

          (i) so long as no Event of Default shall then exist or arise therefrom, such proceeds shall
not be required to be so applied on such date to the extent that (A) in the event such Net Cash
Proceeds exceed $1 million but shall not exceed $20 million, Administrative
Borrower shall have delivered an Officers’ Certificate to the Administrative Agent on or prior
to such date stating that such proceeds are expected to be used, or (B) in the event that such Net
Cash Proceeds exceed $20 million, the Administrative Agent (to the extent such Casualty Event
relates to Term Loan Priority Collateral) has agreed by notice to Administrative Borrower on or
prior to such date to allow such proceeds to be used, in each case, to repair, replace or restore
any property in respect of which such Net Cash Proceeds were paid or to reinvest in other fixed or
capital assets, no later than 365 days following the date of receipt of such proceeds;
provided that if the property subject to such Casualty Event constituted Collateral under
the Security Documents, then all property purchased with the Net Cash Proceeds thereof pursuant to
this subsection shall be made subject to the Lien of the applicable Security Documents in favor of
the Collateral Agent, for its benefit and for the benefit of the other Secured Parties in
accordance with Sections 5.11 and 5.12; and

          (ii) if any portion of such Net Cash Proceeds shall not be so applied within such 365-day
period, such unused portion shall be applied on the last day of such period to mandatory
prepayments and prepayment offers as provided in this Section 2.10(f).

	 	 	 
	 
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     (g) Excess Cash Flow. No later than five (5) Business Days after the earlier of (i)
90 days after the end of each Excess Cash Flow Period and (ii) the date on which the financial
statements with respect to such fiscal year in which such Excess Cash Flow Period occurs are
delivered pursuant to Section 5.01(a), Borrower shall make prepayments in accordance with
Sections 2.10(h) and (i) in an aggregate amount equal to 50% of Excess Cash Flow
for the Excess Cash Flow Period then ended; provided, however, that if (i) on the
date such prepayment is required to be made, no Event of Default has occurred and is continuing,
and (ii) the Senior Secured Leverage Ratio, as of the last day of such Excess Cash Flow Period, is
less than 3.0 to 1.0, then such percentage shall be 25%.

     (h) Application of Prepayments and Prepayment Offers. (i) In the event any optional
prepayment, or any mandatory prepayment pursuant to Section 2.10(d), (e) or
(g) or Section 2.10(c) (to the extent arising from an Asset Sale of the type
described in clause (b) of the definition thereof) is made at a time when Term Loan Borrowings of
more than one Class remain outstanding, the aggregate amount of such prepayment shall be allocated
between the U.S. Term Loans and the Canadian Term Loans in the manner directed by Administrative
Borrower.

          (ii) Amounts required to be applied to mandatory prepayments and prepayment offers pursuant to
Section 2.10(c) (except to the extent arising from an Asset Sale of the type described in
clause (b) of the definition thereof) and (f) shall be allocated between the U.S. Term
Loans and the Canadian Term Loans in the manner directed by Administrative Borrower. Amounts
allocated in respect of the U.S. Term Loans shall be applied as mandatory prepayments as set forth
below in this Section 2.10(h) and amounts allocated in respect of Canadian Term Loans shall
be offered for prepayment as set forth in Section 2.10(i)(ii).

          (iii) Prior to any optional or mandatory prepayment and/or prepayment offer hereunder,
Administrative Borrower shall select the Borrowing or Borrowings to be prepaid and/or offered to be
prepaid and shall specify such selection in the notice of such prepayment and/or prepayment offer
pursuant to Section 2.10(i), subject to the provisions of this Section 2.10(h); provided that after an Event of Default has occurred and is
continuing or after the acceleration of the Obligations, Section 8.03 shall apply.

          (iv) Any prepayments of any Class of Term Loans pursuant to Section 2.10(a),
(c), (d), (e), (f), (g) and (j) shall be applied to
reduce scheduled repayments of such Class of Term Loans required under Section 2.09 on a
pro rata basis among the repayments of such Class remaining to be made on each Term Loan Repayment
Date.

          (v) Amounts to be applied pursuant to this Section 2.10 to the prepayment of Term
Loans (including any amounts in respect of prepayment offers that have been accepted by Lenders)
shall be applied first to reduce outstanding ABR Loans. Any amounts remaining after each such
application shall be applied to prepay Eurocurrency Loans.

          (vi) Notwithstanding any of the foregoing, (A) if the amount of any prepayment of Loans
required under this Section 2.10 shall be in excess of the amount of the ABR Loans at the
time outstanding (an “Excess Amount”), only the portion of the amount of such prepayment as is
equal to the amount of such outstanding ABR Loans shall be immediately prepaid and, at the election
of Administrative Borrower, the Excess Amount shall be either (1) deposited in an

	 	 	 
	 
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escrow account on
terms satisfactory to the Collateral Agent and applied to the prepayment of Eurocurrency Loans on
the last day of the then next-expiring Interest Period for Eurocurrency Loans; provided
that (i) interest in respect of such Excess Amount shall continue to accrue thereon at the rate
provided hereunder for the Loans which such Excess Amount is intended to repay until such Excess
Amount shall have been used in full to repay such Loans and (ii) at any time while a Default has
occurred and is continuing, the Administrative Agent may, and upon written direction from the
Required Lenders shall, apply any or all proceeds then on deposit to the payment of such Loans in
an amount equal to such Excess Amount or (2) prepaid immediately, together with any amounts owing
to the Lenders under Section 2.13 and (B) if any prepayment of Canadian Term Loans required
under Section 2.10(d), (e) or (g) or Section 2.10(c) (to the extent
arising from an Asset Sale of the type described in clause (b) of the definition thereof) (together
with the aggregate amount of all prior (x) prepayments of Canadian Term Loans made pursuant to
Section 2.10(d), (e) and (g) and Section 2.10(c) (to the extent
arising from an Asset Sale of the type described in clause (b) of the definition thereof) and (y)
scheduled repayments of Canadian Term Loans made pursuant to Section 2.09) would result in
more than 25.0% of the original outstanding principal amount of the Canadian Term Loans borrowed on
any date being repaid on or before the applicable 525 Catch-Up Date, then, solely to the extent
necessary to avoid such repayment within such time period, such prepayment amount (a “525
Prepayment Amount”) shall be applied first, to the prepayment of the U.S. Term Loans in accordance
with clauses (iii) through (vi) of Section 2.10(h) and second, if no U.S. Term Loans are
then outstanding, deposited in the 525 Collateral Account and applied in accordance with
Section 2.10(j) on the first day following the 525 Catch-Up Date (and, prior to such date,
as permitted by the final sentence of Section 2.09(b)).

     
     (i) Notice of Prepayments and Prepayment Offers. (i) Administrative Borrower shall
notify the Administrative Agent by written notice of any prepayment hereunder (A) in the case of
prepayment of a Eurocurrency Borrowing, not later than 11:00 a.m., New York City time, three (3)
Business Days before the date of prepayment, and (B) in the case of prepayment of a ABR Borrowing,
not later than 11:00 a.m., New York City time, one (1) Business Day before the
date of prepayment. Each such notice shall be irrevocable. Each such notice shall specify
the prepayment date, the principal amount of each Borrowing or portion thereof to be prepaid and,
in the case of a mandatory prepayment, a reasonably detailed calculation of the amount of such
prepayment. Promptly following receipt of any such notice, the Administrative Agent shall advise
the Lenders of the contents thereof.

          (ii) With respect to any amounts in respect of the Net Cash Proceeds of Asset Sales or
Casualty Events that are allocated to Canadian Term Loans pursuant to Section 2.10(h)(ii)
(such amounts, the “Prepayment Offer Amounts”), Administrative Borrower will, on the applicable
payment date specified in Section 2.10(c) or (f), as the case may be, notify the
Administrative Agent by telephonic notice (promptly confirmed in writing) specifying the Type of
each Canadian Term Loan being offered to be prepaid and the principal amount of each such Loan (or
portion thereof) being offered to be prepaid, and shall provide to each Lender that holds a
Canadian Term Loan notice of such prepayment offer (each, a “Prepayment Offer Notice”). Each
Prepayment Offer Notice shall (A) include an offer by Canadian Borrower to prepay on the date that
is five (5) Business Days after the date of the Prepayment Offer Notice, the relevant Canadian Term
Loans of such Lender in an amount equal to the portion of the Prepayment Offer Amount indicated in
such Lender’s Prepayment Offer Notice as being applicable to such

	 	 	 
	 
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Lender’s Canadian Term Loans
(which shall equal such Lender’s ratable share of the Prepayment Offer Amounts, based on the
proportion that such Lender’s Canadian Tem Loans bears to all Canadian Term Loans), (B) specify the
principal amount of each Borrowing or portion thereof being offered to be prepaid and (C) set forth
the option of such Lender to (x) accept or decline such offer or (y) accept such offer and accept
or decline Prepayment Offer Amounts declined by other Lenders. Each such Lender shall notify the
Administrative Agent no later than 12:00 Noon, New York City time on the second Business Day
immediately preceding the date on which such prepayment is to be made of its intent to accept such
offer for prepayment or decline such offer (and, if such offer is accepted by such Lender, the
amount of Canadian Term Loans with respect to which such Lender shall elect to accept the offer of
prepayment and whether such Lender shall accept Prepayment Offer Amounts declined by other
Lenders); provided that to the extent any such Lender shall not notify the Administrative
Agent by such time, such Lender shall be deemed to have accepted such offer for prepayment and not
elected to accept any such declined Prepayment Offer Amounts. After application of Prepayment
Offer Amounts to mandatory prepayments of the Canadian Term Loans pursuant to this Section, and to
the extent there are Prepayment Offer Amounts remaining after such application, an amount equal to
the total of such amounts shall be applied to the prepayment of the U.S. Term Loans in accordance
with clauses (iii) through (vi) of Section 2.10(h).

          (iii) Each partial prepayment of any Borrowing shall be in an amount that would be permitted
in the case of a Credit Extension of the same Type as provided in Section 2.02(a), except
as necessary to apply fully the required amount of a mandatory prepayment. Each prepayment of a
Borrowing shall be applied ratably to the Loans included in the prepaid Borrowing and otherwise in
accordance with this Section 2.10. Prepayments shall be accompanied by accrued interest to
the extent required by Section 2.06.

     (j) On the first day following the 525 Catch-Up Date with respect to any Canadian Term Loans,
such Canadian Term Loans shall be prepaid, in accordance with clauses (iii) through (vi) of
Section 2.10(h), in an amount equal to the aggregate of all 525 Amortization
Amounts and 525 Prepayment Amounts originally deposited in the 525 Collateral Account in
respect of prepayments and amortization payments on such Canadian Term Loans (and without regard to
the amount actually on deposit on the 525 Collateral Account at such time); provided that
the amount of any such prepayment shall be decreased by the amount of any optional prepayments of
such Canadian Term Loans made with funds held in the 525 Collateral Account.

SECTION 2.11 Alternate Rate of Interest. If prior to the commencement of any Interest Period for a
Eurocurrency Borrowing:

     (a) the Administrative Agent determines (which determination shall be final and conclusive
absent manifest error) that adequate and reasonable means do not exist for ascertaining the
Adjusted LIBOR Rate for such Interest Period; or

     (b) the Administrative Agent is advised in writing by the Required Lenders that the Adjusted
LIBOR Rate for such Interest Period will not adequately and fairly reflect the cost to such Lenders
of making or maintaining their Loans included in such Borrowing for such Interest Period;

	 	 	 
	 
	 	65

 

 

then the Administrative Agent shall give written notice thereof to Administrative Borrower and the
Lenders as promptly as practicable thereafter and, until the Administrative Agent notifies
Administrative Borrower and the Lenders that the circumstances giving rise to such notice no longer
exist, (i) any Interest Election Request that requests the conversion of any Borrowing to, or
continuation of any Borrowing as, a Eurocurrency Borrowing shall be ineffective and (ii) if any
Borrowing Request requests a Eurocurrency Borrowing, such Borrowing shall be made as an ABR
Borrowing.

SECTION 2.12 Yield Protection; Change in Law Generally.

     (a) Increased Costs Generally. If any Change in Law shall:

          (i) impose, modify or deem applicable any reserve, special deposit, compulsory loan, insurance
charge or similar requirement against assets of, deposits with or for the account of, or credit
extended or participated in, by any Lender (except any reserve requirement reflected in the
Adjusted LIBOR Rate);

          (ii) subject any Lender to any Tax of any kind whatsoever with respect to this Agreement or
any Eurocurrency Loan made by it, or change the basis of taxation of payments to such Lender in
respect thereof (except for Indemnified Taxes or Other Taxes covered by Section 2.15 and
the imposition of, or any change in the rate of, any Excluded Tax payable by such Lender); or

          (iii) impose on any Lender or the interbank market any other condition, cost or expense
affecting this Agreement or Eurocurrency Loans made by such Lender;

and the result of any of the foregoing shall be to increase the cost to such Lender of making or
maintaining any Eurocurrency Loan (or of maintaining its obligation to make any such Loan), or to
reduce the amount of any sum received or receivable by such Lender hereunder (whether of principal,
interest or any other amount), then, upon request of such Lender, Borrowers will pay to such
Lender, as the case may be, such additional amount or amounts as will compensate such Lender, as
the case may be, for such additional costs incurred or reduction suffered.

     (b) Capital Requirements. If any Lender determines (in good faith, but in its sole
absolute discretion) that any Change in Law affecting such Lender or any lending office of such
Lender or such Lender’s holding company, if any, regarding capital requirements has or would have
the effect of reducing the rate of return on such Lender’s capital or on the capital of such
Lender’s holding company, if any, as a consequence of this Agreement, the Commitments of such
Lender or the Loans made by such Lender, to a level below that which such Lender or such Lender’s
holding company could have achieved but for such Change in Law (taking into consideration such
Lender’s policies and the policies of such Lender’s holding company with respect to capital
adequacy), then from time to time Borrowers will pay to such Lender, as the case may be, such
additional amount or amounts as will compensate such Lender or such Lender’s holding company for
any such reduction suffered.

     (c) Certificates for Reimbursement. A certificate of a Lender setting forth the
amount or amounts necessary to compensate such Lender or its holding company, as the case may be,
as specified in paragraph (a) or (b) of this Section 2.12 and delivered to Administrative

	 	 	 
	 
	 	66

 

 

Borrower shall be conclusive absent manifest error. Borrowers shall pay such Lender, as the case
may be, the amount shown as due on any such certificate within ten (10) Business Days after receipt
thereof.

     (d) Delay in Requests. Failure or delay on the part of any Lender to demand
compensation pursuant to this Section 2.12 shall not constitute a waiver of such Lender’s
right to demand such compensation; provided that Borrowers shall not be required to
compensate a Lender pursuant to this Section for any increased costs incurred or reductions
suffered more than nine months prior to the date that such Lender, as the case may be, notifies
Administrative Borrower of the Change in Law giving rise to such increased costs or reductions and
of such Lender’s intention to claim compensation therefor (except that, if the Change in Law giving
rise to such increased costs or reductions is retroactive, then the nine-month period referred to
above shall be extended to include the period of retroactive effect thereof).

     (e) Change in Legality Generally. Notwithstanding any other provision of this
Agreement, if any Change in Law shall make it unlawful for any Lender to make or maintain any
Eurocurrency Loan or to give effect to its obligations as contemplated hereby with respect to any
Eurocurrency Loan, then, upon written notice by such Lender to Administrative Borrower and the
Administrative Agent:

          (i) the Commitments of such Lender (if any) to fund the affected Type of Loan shall
immediately terminate; and

          (ii) (x) such Lender may declare that Eurocurrency Loans will not thereafter (for the duration
of such unlawfulness) be continued for additional Interest Periods and ABR
Loans will not thereafter (for such duration) be converted into Eurocurrency Loans, whereupon
any request to convert an ABR Borrowing to a Eurocurrency Borrowing or to continue a Eurocurrency
Borrowing for an additional Interest Period shall, as to such Lender only, be deemed a request to
continue an ABR Loan as such, or to convert a Eurocurrency Loan into an ABR Loan, as the case may
be, unless such declaration shall be subsequently withdrawn and (y) all such outstanding
Eurocurrency Loans made by such Lender shall be automatically converted to ABR Loans on the last
day of the then current Interest Period therefor or, if earlier, on the date specified by such
Lender in such notice (which date shall be no earlier than the last day of any applicable grace
period permitted by applicable law).

SECTION 2.13 Breakage Payments. In the event of (a) the payment or prepayment, whether optional or
mandatory, of any principal of any Eurocurrency Loan earlier than the last day of an Interest
Period applicable thereto (including as a result of an Event of Default), (b) the conversion of any
Eurocurrency Loan earlier than the last day of the Interest Period applicable thereto, (c) the
failure to borrow, convert, continue or prepay any Term Loan on the date specified in any notice
delivered pursuant hereto or (d) the assignment of any Eurocurrency Loan earlier than the last day
of the Interest Period applicable thereto as a result of a request by Administrative Borrower
pursuant to Section 2.16(c), then, in any such event, the applicable Borrower shall
compensate each Lender for the loss, cost and expense attributable to such event. In the case of
any Eurocurrency Loan, such loss, cost or expense to any Lender shall be deemed to include an
amount determined by such Lender to be the excess, if any, of (i) the amount of interest which
would have accrued on the principal amount of such Loan had such event not

	 	 	 
	 
	 	67

 

 

occurred, at the
Adjusted LIBOR Rate that would have been applicable to such Loan, for the period from the date of
such event to the last day of the then current Interest Period therefor (or, in the case of a
failure to borrow, convert or continue, for the period that would have been the Interest Period for
such Loan) (excluding, however, the Applicable Margin included therein, if any), over (ii) the
amount of interest which would accrue on such principal amount for such period at the interest rate
which such Lender would bid were it to bid, at the commencement of such period, for deposits of a
comparable currency, amount and period from other banks in the applicable interbank market. A
certificate of any Lender setting forth in reasonable detail any amount or amounts that such Lender
is entitled to receive pursuant to this Section 2.13 shall be delivered to Administrative
Borrower (with a copy to the Administrative Agent) and shall be conclusive and binding absent
manifest error. The applicable Borrower shall pay such Lender the amount shown as due on any such
certificate within five (5) days after receipt thereof.

SECTION 2.14 Payments Generally; Pro Rata Treatment; Sharing of Setoffs.

     (a) Payments Generally. Each Loan Party shall make each payment required to be made
by it hereunder or under any other Loan Document (whether of principal, interest or fees, or of
amounts payable under Section 2.12, Section 2.13, Section 2.15, Section
2.16 or Section 11.03, or otherwise) on or before the time expressly required hereunder
or under such other Loan Document for such payment (or, if no such time is expressly required,
prior to 2:00 p.m., New York City time), on the date when due, in immediately available funds,
without setoff, deduction
or counterclaim. Any amounts received after such time on any date may, in the discretion of
the Administrative Agent, be deemed to have been received on the next succeeding Business Day for
purposes of calculating interest thereon. All such payments shall be made to the Administrative
Agent at its offices at 677 Washington Boulevard, Stamford, Connecticut, except that payments
pursuant to Section 2.12, Section 2.13, Section 2.15, Section 2.16
and Section 11.03 shall be made directly to the persons entitled thereto and payments
pursuant to other Loan Documents shall be made to the persons specified therein. The
Administrative Agent shall distribute any such payments received by it for the account of any other
person to the appropriate recipient promptly following receipt thereof. If any payment under any
Loan Document shall be due on a day that is not a Business Day, unless specified otherwise, the
date for payment shall be extended to the next succeeding Business Day, and, in the case of any
payment accruing interest, interest thereon shall be payable for the period of such extension. All
payments under each Loan Document shall be made in dollars, except as expressly specified
otherwise.

     (b) Pro Rata Treatment.

          (i) Each payment by Borrowers of interest in respect of the Loans of any Class shall be
applied to the amounts of such obligations owing to the Lenders pro rata according to the
respective amounts then due and owing to the Lenders, except in the case of holders of Canadian
Term Loans that have declined prepayment offers with respect to interest on the principal amount
prepaid in such offer.

          (ii) Each payment by Borrowers on account of principal of the Borrowings of any Class shall be
made pro rata according to the respective outstanding principal amounts of the Loans of such Class
then held by the Lenders, except in the case of holders of Canadian Term Loans that have declined
prepayment offers.

	 	 	 
	 
	 	68

 

 

     (c) Insufficient Funds. If at any time insufficient funds are received by and
available to the Administrative Agent to pay fully all amounts of principal, interest and fees then
due hereunder, such funds shall be applied (i) first, toward payment of interest and fees then due
hereunder, ratably among the parties entitled thereto in accordance with the amounts of interest
and fees then due to such parties, and (ii) second, toward payment of principal then due hereunder,
ratably among the parties entitled thereto in accordance with the amounts of principal then due to
such parties.

     (d) Sharing of Set-Off. Subject to the terms of the Intercreditor Agreement, if any
Lender shall, by exercising any right of setoff or counterclaim or otherwise, obtain payment in
respect of any principal of or interest on any of its Loans or other Obligations resulting in such
Lender’s receiving payment of a proportion of the aggregate amount of its Loans and accrued
interest thereon or other Obligations greater than its pro rata share thereof as provided herein,
then the Lender receiving such greater proportion shall (a) notify the Administrative Agent of such
fact, and (b) purchase (for cash at face value) participations in the Loans and such other
obligations of the other Lenders, or make such other adjustments as shall be equitable, so that the
benefit of all such payments shall be shared by the Lenders ratably in accordance with the
aggregate amount of principal of and accrued interest on their respective Loans and other amounts
owing them, provided that:

          (i) if any such participations are purchased and all or any portion of the payment giving rise
thereto is recovered, such participations shall be rescinded and the purchase price restored to the
extent of such recovery, without interest; and

          (ii) the provisions of this paragraph shall not be construed to apply to (x) any payment made
by any Loan Party pursuant to and in accordance with the express terms of this Agreement or (y) any
payment obtained by a Lender as consideration for the assignment of or sale of a participation in
any of its Loans to any assignee or participant, other than to any Loan Party or any Subsidiary
thereof (as to which the provisions of this paragraph shall apply).

Each Loan Party consents to the foregoing and agrees, to the extent it may effectively do so under
applicable Requirements of Law, that any Lender acquiring a participation pursuant to the foregoing
arrangements may exercise against such Loan Party rights of setoff and counterclaim with respect to
such participation as fully as if such Lender were a direct creditor of such Loan Party in the
amount of such participation. If under applicable bankruptcy, insolvency or any similar law any
Secured Party receives a secured claim in lieu of a setoff or counterclaim to which this
Section 2.14(d) applies, such Secured Party shall to the extent practicable, exercise its
rights in respect of such secured claim in a manner consistent with the rights to which the Secured
Party is entitled under this Section 2.14(d) to share in the benefits of the recovery of
such secured claim.

     (e) Borrower Default. Unless the Administrative Agent shall have received notice from
Administrative Borrower prior to the date on which any payment is due to the Administrative Agent
for the account of the Lenders hereunder that the applicable Borrower will not make such payment,
the Administrative Agent may assume that the applicable Borrower have made such payment on such
date in accordance herewith and may, in reliance upon such assumption, distribute to the Lenders,
as the case may be, the amount due. In such event, if the

	 	 	 
	 
	 	69

 

 

applicable Borrower have not in fact made such payment, then each of the Lenders, as the case
may be, severally agrees to repay to the Administrative Agent forthwith on demand the amount so
distributed to such Lender with interest thereon, for each day from and including the date such
amount is distributed to it to but excluding the date of payment to the Administrative Agent, at
the greater of the Interbank Rate and a rate determined by the Administrative Agent in accordance
with banking industry rules on interbank compensation.

     (f) Lender Default. If any Lender shall fail to make any payment required to be made
by it pursuant to Section 2.02(c), Section 2.14(e) or Section 11.03(c),
then the Administrative Agent may, in its discretion (notwithstanding any contrary provision
hereof), apply any amounts thereafter received by the Administrative Agent for the account of such
Lender to satisfy such Lender’s obligations under such Sections until all such unsatisfied
obligations are fully paid.

SECTION 2.15 Taxes.

     (a) Payments Free of Taxes. Any and all payments by or on account of any obligation
of the Loan Parties hereunder or under any other Loan Document shall be made free and clear of and
without reduction or withholding for any Indemnified Taxes or Other Taxes; provided that if
any Loan Party shall be required by applicable Requirements of Law to deduct any Indemnified Taxes
(including any Other Taxes) from such payments, then (i) such Loan Party shall increase the sum
payable as necessary so that after all required deductions and withholdings (including deductions
and withholdings applicable to additional sums payable under this Section) each Agent or Lender, as
the case may be, receives an amount equal to the sum it would have received had no such deductions
been made, (ii) the applicable Loan Party shall make such deductions and (iii) the applicable Loan
Party shall timely pay the full amount deducted to the relevant Taxing Authority in accordance with
applicable Requirements of Law.

     (b) Payment of Other Taxes by Borrowers. Without limiting the provisions of paragraph
(a) above, each Loan Party shall timely pay any Other Taxes to the relevant Taxing Authority in
accordance with applicable Requirements of Law.

     (c) Indemnification by Loan Parties. Each Loan Party shall indemnify each Agent and
each Lender, within ten (10) Business Days after demand therefor, for the full amount of any
Indemnified Taxes or Other Taxes (including Indemnified Taxes or Other Taxes imposed or asserted on
or attributable to amounts payable under this Section) paid by such Agent or such Lender, as the
case may be, and any penalties, interest and reasonable expenses arising therefrom or with respect
thereto, whether or not such Indemnified Taxes or Other Taxes were correctly or legally imposed or
asserted by the relevant Taxing Authority. A certificate as to the amount of such payment or
liability delivered to Administrative Borrower by a Lender (with a copy to the Administrative
Agent), or by an Agent on its own behalf or on behalf of a Lender, shall be conclusive absent
manifest error. No Borrower shall be obliged to provide indemnity under this Section where the
Indemnified Tax or Other Tax in question is (i) compensated for by an
increased payment under Sections 2.12(a)(ii) or 2.15(a) or (ii) would have
been compensated for by an increased payment under Section 2.15(a) but was not so
compensated solely because of one of the exclusions in that Section.

	 	 	 
	 
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     (d) Evidence of Payments. As soon as practicable after any payment of Indemnified
Taxes or Other Taxes by any Loan Party to a Taxing Authority, the relevant Loan Party shall deliver
to the Administrative Agent the original or a certified copy of a receipt issued by such Taxing
Authority evidencing such payment, a copy of the return reporting such payment or other evidence of
such payment reasonably satisfactory to the Administrative Agent.

     (e) Status of Lenders. Any Lender that is entitled to an exemption from or reduction
of withholding tax under the law of the jurisdiction in which the applicable Loan Party is resident
for tax purposes, or any treaty to which such jurisdiction is a party, with respect to payments
hereunder or under any other Loan Document shall, to the extent it may lawfully do so, deliver to
Administrative Borrower (with a copy to the Administrative Agent), at the time or times prescribed
by applicable Requirements of Law or reasonably requested by Administrative Borrower or the
Administrative Agent (and from time to time thereafter, as requested by Administrative Borrower or
Administrative Agent), such properly completed and executed documentation prescribed by applicable
Requirements of Law or any subsequent replacement or substitute form that may lawfully be provided
as will permit such payments to be made without withholding or at a reduced rate of withholding.
In addition, any Lender, if requested by Administrative Borrower or the Administrative Agent, shall
deliver such other documentation prescribed by applicable Requirements of Law or reasonably
requested by Administrative Borrower or the Administrative Agent as will enable the applicable Loan
Parties or the Administrative Agent to determine whether or not such Lender is subject to backup
withholding or information reporting requirements; provided, however, that
Administrative Borrower may treat any Agent or Lender as an “exempt recipient” based on the
indicators described in Treasury Regulations Section 1.6049-4(c) and if it may be so treated, such
Agent or Lender shall not be required to provide such documentation, except to the extent such
documentation is required pursuant to the Treasury Regulations promulgated under the Code Section
1441.

     Each Lender which so delivers any document requested by Administrative Borrower or
Administrative Agent in this Section 2.15(e) further undertakes to deliver to
Administrative Borrower (with a copy to Administrative Agent), upon request of Administrative
Borrower or Administrative Agent, copies of such requested form (or a successor form) on or before
the date that such form expires or becomes obsolete or after the occurrence of any event requiring
a change in the most recent form so delivered by it, and such amendments thereto or extensions or
renewals thereof as may be reasonably requested by Administrative Borrower or Administrative Agent,
in each case, unless an event (including any change in treaty, law or regulation) has occurred
prior to the date on which any such delivery would otherwise be required that renders all such
forms inapplicable or that would prevent such Lender from duly completing and delivering any such
form with respect to it. For avoidance of doubt, Borrowers shall not be required to pay additional
amounts to any Lender or Administrative Agent pursuant to this Section 2.15(e) to the
extent the obligation to pay such additional amount would not have arisen but for the failure of
such Lender or Administrative Agent to comply with this paragraph.

     (f) Treatment of Certain Refunds. If an Agent or a Lender determines, in its sole
discretion, that it has received a refund of, credit against, relief or remission for any
Indemnified Taxes or Other Taxes as to which it has been indemnified by the Loan Parties or with
respect to which any Loan Party has paid additional amounts pursuant to this Section or Section
2.12(a)(ii), it shall pay to such Loan Party an amount equal to such refund, credit, relief or
remission (but

	 	 	 
	 
	 	71

 

 

only to the extent of indemnity payments made, or additional amounts paid, by such
Loan Party under this Section with respect to the Indemnified Taxes or Other Taxes giving rise to
such refund or any additional amounts under Section 2.12(a)(ii)), net of all reasonable and
customary out-of-pocket expenses of such Agent or Lender, as the case may be, and without interest
(other than any interest paid by the relevant Taxing Authority with respect to such refund or any
additional amounts under Section 2.12(a)(ii));
provided that each Loan Party, upon the
request of such Agent or such Lender, agrees to repay the amount paid over to such Loan Party (plus
any penalties, interest or other charges imposed by the relevant Taxing Authority) to such Agent or
such Lender in the event such Agent or such Lender is required to repay such refund to such Taxing
Authority. Nothing in this Agreement shall be construed to require any Agent or any Lender to make
available its tax returns (or any other information relating to its taxes that it deems
confidential) to any Loan Party or any other person. Notwithstanding anything to the contrary, in
no event will any Agent or any Lender be required to pay any amount to any Loan Party the payment
of which would place such Agent or such Lender in a less favorable net after-tax position than such
Agent or such Lender would have been in if the additional amounts giving rise to such refund of any
Indemnified Taxes or Other Taxes had never been paid.

     (g) Co-operation. Notwithstanding anything to the contrary in Section
2.15(e), with respect to non-U.S. withholding taxes, the Administrative Agent, the relevant
Lender(s) (at the written request of the relevant Loan Party) and the relevant Loan Party shall,
co-operate in completing any procedural formalities necessary (including delivering any
documentation prescribed by the applicable Requirement of Law and making any necessary reasonable
approaches to the relevant Taxing Authorities) for the relevant Loan Party to obtain authorization
to make a payment to which the Administrative Agent or such Lender(s) is entitled without a
deduction or withholding for, or on account of, Taxes; provided, however, that none
of the Administrative Agent or any Lender shall be required to provide any documentation that it is
not legally entitled to provide, or take any action that, in the Administrative Agent’s or the
relevant Lender’s reasonable judgment, would subject the Administrative Agent or such Lender to any
material unreimbursed costs or otherwise be disadvantageous to it in any material respect.

     (h) Tax Returns. If, as a result of executing a Loan Document, entering into the
transactions contemplated thereby or with respect thereto, receiving a payment or enforcing its
rights thereunder, any Agent or any Lender is required to file a Tax Return in a jurisdiction in
which it would not otherwise be required file, the Loan Parties shall promptly provide such
assistance as the relevant Agent or Lender shall reasonably request with respect to the completion
and filing of such Tax Return. For clarification, any expenses incurred in connection with such
filing shall be subject to Section 11.03.

SECTION 2.16 Mitigation Obligations; Replacement of Lenders.

     (a) Designation of a Different Lending Office. Each Lender may at any time or from
time to time designate, by written notice to the Administrative Agent, one or more lending offices
(which, for this purpose, may include Affiliates of the respective Lender) for the various Loans
made by such Lender; provided that to the extent such designation shall result, as of the
time of such designation, in increased costs under Section 2.12 or Section 2.15 in
excess of those which would be charged in the absence of the designation of a different lending
office (including a different Affiliate of the respective Lender), then the Borrowers shall not be
obligated to pay

	 	 	 
	 
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such excess increased costs (although the Borrowers, in accordance with and
pursuant to the other provisions of this Agreement, shall be obligated to pay the costs which would
apply in the absence of such designation and any subsequent increased costs of the type described
above resulting from changes after the date of the respective designation). Each lending office
and Affiliate of any Lender designated as provided above shall, for all purposes of this Agreement,
be treated in the same manner as the respective Lender (and shall be entitled to all indemnities
and similar provisions in respect of its acting as such hereunder). Each lending office and
Affiliate of any Lender designated as provided above shall, for all purposes of this Agreement, be
treated in the same manner as the respective Lender (and shall be entitled to all indemnities and
similar provisions in respect of its acting as such hereunder). The proviso to the first sentence
of this Section 2.16(a) shall not apply to changes in a lending office pursuant to
Section 2.16(b) if such change was made upon the written request of the Administrative
Borrower.

     (b) Mitigation Obligations. If any Lender requests compensation under Section
2.12, or requires any Loan Party to pay any additional amount to any Lender or any Taxing
Authority for the account of any Lender pursuant to Section 2.15, then such Lender shall
use reasonable efforts to designate a different lending office for funding or booking its Loans
hereunder or to assign its rights and obligations hereunder to another of its offices, branches or
affiliates, if, in the judgment of such Lender, such designation or assignment (i) would eliminate
or reduce amounts payable pursuant to Section 2.12 or Section 2.15, as the case may
be, in the future and (ii) would not subject such Lender to any unreimbursed cost or expense and
would not otherwise be disadvantageous to such Lender. Each Loan Party hereby agrees to pay all
reasonable costs and expenses incurred by any Lender in connection with any such designation or
assignment. A certificate setting forth such costs and expenses submitted by such Lender to
Administrative Borrower shall be conclusive absent manifest error.

     (c) Replacement of Lenders. If any Lender requests compensation under Section
2.12, or if any Borrower is required to pay any additional amount to any Lender or any Taxing
Authority for the account of any Lender pursuant to Section 2.15, or if any Lender defaults
in its obligation to fund Loans hereunder, or if Administrative Borrower exercises its replacement
rights under Section 11.02(d), then Borrowers may, at their sole expense and effort, upon
notice by Administrative Borrower to such Lender and the Administrative Agent, require such Lender
to assign and delegate, without recourse (in accordance with and subject to the restrictions
contained in, and consents required by, Section 11.04), all of its interests, rights and
obligations under this Agreement and the other Loan Documents to an Eligible Assignee that shall
assume such obligations (which assignee may be another Lender, if a Lender accepts such
assignment); provided that:

          (i) Borrowers or the assignee shall have paid to the Administrative Agent the processing and
recordation fee specified in Section 11.04(b);

          (ii) such Lender shall have received payment of an amount equal to the outstanding principal
of its Loans, accrued interest thereon, and all other amounts payable to it hereunder and under the
other Loan Documents (including any amounts under Section 2.13), from the assignee (to the
extent of such outstanding principal and accrued interest and fees) or the applicable Borrowers (in
the case of all other amounts);

	 	 	 
	 
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          (iii) in the case of any such assignment resulting from a claim for compensation under
Section 2.12 or payments required to be made pursuant to Section 2.15, such
assignment will result in a reduction in such compensation or payments thereafter; and

          (iv) such assignment does not conflict with applicable Requirements of Law.

A Lender shall not be required to make any such assignment or delegation if, prior thereto, as a
result of a waiver by such Lender or otherwise, the circumstances entitling Borrowers to require
such assignment and delegation cease to apply.

SECTION 2.17 [INTENTIONALLY OMITTED].

SECTION 2.18 [INTENTIONALLY OMITTED].

SECTION 2.19 Interest Act (Canada); Criminal Rate of Interest; Nominal Rate of Interest.

     (a) Notwithstanding anything to the contrary contained in this Agreement or in any other Loan
Document, solely to the extent that a court of competent jurisdiction finally determines that the
calculation or determination of interest or any fee payable by the any Canadian Loan Party in
respect of the Obligations pursuant to this Agreement and the other Loan Documents shall be
governed by the laws of any province of Canada or the federal laws of Canada, in no event shall the
aggregate interest (as defined in Section 347 of the Criminal Code, R.S.C. 1985, c. C-46, as the
same shall be amended, replaced or re-enacted from time to time, “Section 347”) payable by the
Canadian Loan Parties to the Agents or any Lender under this Agreement or any other Loan Document
exceed the effective annual rate of interest on the Credit advances (as defined in Section 347)
under this Agreement or such other Loan Document lawfully permitted under Section 347 and, if any
payment, collection or demand pursuant to this Agreement or any other Loan Document in respect of
Interest (as defined in Section 347) is determined to be contrary to the provisions of Section 347,
such payment, collection or demand shall be deemed to have been made by mutual mistake of the
Agents, the Lenders and the Canadian Loan Parties and the amount of such payment or collection
shall be refunded by the relevant Agents and Lenders to the applicable Canadian Loan Parties. For
the purposes of this Agreement and each other Loan Document to which the Canadian Loan Parties are a party, the
effective annual rate of interest payable by the Canadian Loan Parties shall be determined in
accordance with generally accepted actuarial practices and principles over the term of the loans on
the basis of annual compounding for the lawfully permitted rate of interest and, in the event of
dispute, a certificate of a Fellow of the Canadian Institute of Actuaries appointed by the for the
account of the Canadian Loan Parties will be conclusive for the purpose of such determination in
the absence of evidence to the contrary.

     (b) For the purposes of the Interest Act (Canada) and with respect to Canadian Loan Parties
only:

          (i) whenever any interest or fee payable by the Canadian Loan Parties is calculated using a
rate based on a year of 360 days or 365 days, as the case may be, the rate determined pursuant to
such calculation, when expressed as an annual rate, is equivalent to (x) the applicable rate based
on a year of 360 days or 365 days, as the case may be, (y) multiplied by

	 	 	 
	 
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the actual number of days in the calendar year in which such rate is to be ascertained and (z) divided by 360 or 365, as the
case may be; and

          (ii) all calculations of interest payable by the Canadian Loan Parties under this Agreement or
any other Loan Document are to be made on the basis of the nominal interest rate described herein
and therein and not on the basis of effective yearly rates or on any other basis which gives effect
to the principle of deemed reinvestment of interest.

The parties hereto acknowledge that there is a material difference between the stated nominal
interest rates and the effective yearly rates of interest and that they are capable of making the
calculations required to determine such effective yearly rates of interest.

SECTION 2.20 [INTENTIONALLY OMITTED].

SECTION 2.21 [INTENTIONALLY OMITTED].

SECTION 2.22 [INTENTIONALLY OMITTED].

SECTION 2.23 Incremental Term Loan Commitments.

     (a) Borrowers Request. The Borrowers may by written notice to the Administrative
Agent elect to request the establishment of one or more new U.S. Term Loan Commitments and/or
Canadian Term Loan Commitments (each, an “Incremental Term Loan Commitment”) (x) in an aggregate
principal amount (for all Incremental Term Loan Commitments pursuant to this Section) not in excess
of $400 million and (y) in an aggregate principal amount of not less
than $25 million individually. Each such notice shall specify (i) the allocation of such
Incremental Term Loan Commitments between the U.S. Term Loan Commitments and the Canadian Term Loan
Commitments, (ii) the date on which the Borrowers propose that such Incremental Term Loan
Commitments shall be effective (each, an “Increase Effective Date”), which shall be a date not less
than 10 Business Days after the date on which such notice is delivered to the Administrative Agent
and (iii) the identity of each Eligible Assignee to whom Borrowers propose any portion of such
Incremental Term Loan Commitments be allocated and the amounts and Class of such allocations;
provided that any existing Lender approached to provide all or a portion of any Incremental
Term Loan Commitments may elect or decline, in its sole discretion, to provide such Incremental
Term Loan Commitments.

     (b) Conditions. Such Incremental Term Loan Commitments shall become effective, as of
such Increase Effective Date; provided that:

          (i) each of the conditions set forth in Section 4.02 shall be satisfied;

          (ii) no Default shall have occurred and be continuing or would result from the borrowings to
be made on the Increase Effective Date;

          (iii) after giving pro forma effect to the borrowings to be made on the Increase Effective
Date and to any change in Consolidated EBITDA and any increase in Indebtedness resulting from the
consummation of any Permitted Acquisition or other Investment concurrently

	 	 	 
	 
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with such borrowings, the Senior Secured Leverage Ratio at such date shall be not greater than 3.0 to 1.0; and

          (iv) the Borrowers shall deliver or cause to be delivered any legal opinions or other
documents reasonably requested by the Administrative Agent in connection with any such transaction.

     (c) Terms of Incremental Term Loans and Commitments. The terms and provisions of
Loans made pursuant to the new Commitments shall be as follows:

          (i) terms and provisions of Loans made pursuant to Incremental Term Loan Commitments
(“Incremental Term Loans”) shall be, except as otherwise set forth herein or in the Increase
Joinder, identical to the existing Term Loans of the same Class;

          (ii) the Weighted Average Life to Maturity of all Incremental Term Loans shall be no shorter
than the Weighted Average Life to Maturity of the existing Term Loans of the same Class;

          (iii) the maturity date of Incremental Term Loans (the “Incremental Term Loan Maturity Date”)
shall not be earlier than the Final Maturity Date and, in the case of any Incremental Loans that
are Canadian Term Loans, the maturity date of such Incremental Term Loans shall not be earlier than
the 525 Catch-Up Date with respect to such Loans; and

          (iv) the Applicable Margins for the Incremental Term Loans shall be determined by Borrower and
the applicable new Lenders; provided, however, that the Net Yield for the
Incremental Term Loans shall not be greater than the highest Net Yield (excluding
interest payable at the Default Rate) that may, under any circumstances, be payable with
respect to the Term Loans advanced on the Closing Date plus 50 basis points (and the Applicable
Margins applicable to the Term Loans advanced on the Closing Date shall be increased to the extent
necessary to achieve the foregoing; and provided that to the extent the Net Yield
applicable to the Term Loans advanced on the Closing Date are so increased, the Net Yield on the
Term Loans advanced after the Closing Date but prior to the relevant Increase Effective Date shall
be increased (by increasing the per annum rate of interest applicable to such Term Loans) such that
the difference between the Net Yield applicable to the Term Loans advanced on the Closing Date and
such Term Loans remains constant (or, if such Net Yield of both such series of Term Loans was
equal, such Net Yield remains equal)). “Net Yield”, for purposes of any Term Loans, shall mean the
sum of (1) the per annum rate of interest applicable to such Term Loans (determined at the relevant
Increase Effective Date) plus (2) any original issue discount offered to Lenders making such Term
Loans amortized equally over the period from the date such Term Loans were made to the applicable
maturity date of such Term Loans; provided that such original issue discount shall not be
amortized over a period of greater than three years. All determinations by the Administrative
Agent as to Net Yield or other matters contemplated by this Section 2.23 shall be
conclusive absent manifest error.

The Incremental Term Loan Commitments shall be effected by a joinder agreement (the “Increase
Joinder”) executed by the Loan Parties, the Administrative Agent and each Lender making such
Incremental Term Loan Commitment, in form and substance satisfactory to each of

	 	 	 
	 
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them. The Increase Joinder may, without the consent of any other Lenders, effect such amendments to this Agreement and
the other Loan Documents as may be necessary or appropriate, in the opinion of the Administrative
Agent, to effect the provisions of this Section 2.23. In addition, unless otherwise
specifically provided herein, all references in Loan Documents to Term Loans shall be deemed,
unless the context otherwise requires, to include references to Term Loans made pursuant to
Incremental Term Loan Commitments made pursuant to this Agreement, and all references in Loan
Documents to Commitments of a Class shall be deemed, unless the context otherwise requires, to
include references to new Commitments of such Class made pursuant to this Agreement (for the
avoidance of doubt, it being expressly understood and agreed that, inter alia, the provisions of
Section 2.09(b) and Section 2.10(h)(vi)(B) shall apply to any Incremental Term
Loans that are Canadian Term Loans).

     (d) Making of New Term Loans. On any Increase Effective Date on which Incremental
Term Loan Commitments are effective, subject to the satisfaction of the foregoing terms and
conditions, each Lender of such Incremental Term Loan Commitments shall make a Term Loan to
Borrower in an amount equal to its new Commitment.

     (e) Equal and Ratable Benefit. The Loans and Commitments established pursuant to this
paragraph shall constitute Loans and Commitments under, and shall be entitled to all the benefits
afforded by, this Agreement and the other Loan Documents, and shall, without limiting the
foregoing, benefit equally and ratably from the Guarantees and security interests created by the
Security Documents. The Loan Parties shall take any actions reasonably required by the
Administrative Agent to ensure and/or demonstrate that the Lien and security interests granted by
the Security Documents continue to be perfected under the UCC, the PPSA or otherwise after
giving effect to the establishment of any such Incremental Term Loan Commitments or any such
new Term Loans.

ARTICLE III.

REPRESENTATIONS AND WARRANTIES

     Each Loan Party represents and warrants to the Administrative Agent, the Collateral Agent, and
each of the Lenders (with references to the Companies being references thereto after giving effect
to the Transactions unless otherwise expressly stated) that:

SECTION 3.01 Organization; Powers. Each Company (a) is duly organized or incorporated (as
applicable) and validly existing under the laws of the jurisdiction of its organization or
incorporation (as applicable), (b) has all requisite organizational or constitutional power and
authority to carry on its business as now conducted and to own and lease its property and (c) is
qualified and in good standing (to the extent such concept is applicable in the applicable
jurisdiction) to do business in every jurisdiction where such qualification is required, except in
such jurisdictions where the failure to so qualify or be in good standing, individually or in the
aggregate, could not reasonably be expected to result in a Material Adverse Effect.

SECTION 3.02 Authorization; Enforceability. The Transactions to be entered into by each Loan Party
are within such Loan Party’s organizational or constitutional powers and

	 	 	 
	 
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have been duly authorized by all necessary organizational or constitutional action on the part of such Loan Party. This
Agreement has been duly executed and delivered by each Loan Party and constitutes, and each other
Loan Document to which any Loan Party is to be a party, when executed and delivered by such Loan
Party, will constitute, a legal, valid and binding obligation of such Loan Party, enforceable in
accordance with its terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium
or other laws affecting creditors’ rights generally and subject to general principles of equity,
regardless of whether considered in a proceeding in equity or at law.

SECTION 3.03 No Conflicts. The Transactions (a) do not require any consent or approval of,
registration or filing with, or any other action by, any Governmental Authority, except (i) such as
have been obtained or made and are in full force and effect, (ii) filings necessary to perfect
Liens created by the Loan Documents (as reflected in the applicable Perfection Certificate) and
(iii) consents, approvals, registrations, filings, permits or actions the failure to obtain or
perform which could not reasonably be expected to result in a Material Adverse Effect, (b) will not
violate the Organizational Documents of any Company, (c) will not violate any Requirement of Law,
(d) will not violate or result in a default or require any consent or approval under any indenture,
agreement or other instrument binding upon any Company or its property, or give rise to a right
thereunder to require any payment to be made by any Company, except for violations, defaults or the
creation of such rights that could not reasonably be expected to result in a Material Adverse
Effect, and (e) will not result in the creation or imposition of any Lien on any property of any
Company, except Liens created by the Loan Documents and Permitted Liens. The execution,
delivery and performance of the Loan Documents will not violate, or result in a default under, or
require any consent or approval under, the Senior Notes, the Senior Note Documents, or the
Revolving Credit Loan Documents.

SECTION 3.04 Financial Statements; Projections.

     (a) Historical Financial Statements. Administrative Borrower has heretofore delivered
to the Lenders the consolidated balance sheets and related statements of income, stockholders’
equity and cash flows of Canadian Borrower (i) as of and for the fiscal years ended 2005 and 2006,
audited by and accompanied by the unqualified opinion of PricewaterhouseCoopers, independent public
accountants, and (ii) as of and for the three-month period ended March 30, 2007, and for the
comparable period of the preceding fiscal year, in each case, certified by the chief financial
officer of Canadian Borrower. Such financial statements and all financial statements delivered
pursuant to Section 5.01(a), Section 5.01(b) and Section 5.01(c) have been
prepared in accordance with GAAP and present fairly in all material respects the financial
condition and results of operations and cash flows of Canadian Borrower as of the dates and for the
periods to which they relate.

     (b) No Liabilities. Except as set forth in the most recent financial statements
referred to in Section 3.04(a), as of the Closing Date there are no liabilities of any
Company of any kind, whether accrued, contingent, absolute, determined, determinable or otherwise,
which could reasonably be expected to result in a Material Adverse Effect, and there is no existing
condition, situation or set of circumstances which could reasonably be expected to result in such a
liability, other than liabilities under the Loan Documents, the Revolving Credit Loan Documents and
the Senior Notes. Since December 31, 2006, there has been no event, change, circumstance or

	 	 	 
	 
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occurrence that, individually or in the aggregate, has had or could reasonably be expected to
result in a Material Adverse Effect.

     (c) Pro Forma Financial Statements. Borrowers have heretofore delivered to the
Lenders in the Confidential Information Memorandum, Canadian Borrower’s unaudited pro forma
consolidated capitalization table as of March 31, 2007, after giving effect to the Transactions as
if they had occurred on such date. Such capitalization table has been prepared in good faith by
the Loan Parties, based on the assumptions stated therein (which assumptions are believed by the
Loan Parties on the date hereof to be reasonable), are based on the best information available to
the Loan Parties as of the date of delivery thereof, accurately reflect all adjustments required to
be made to give effect to the Transactions and present fairly in all material respects the pro
forma capitalization of Holdings as of such date assuming the Transactions had occurred at such
date, except as required to adjust for the final allocation as between the Term Loans and the
Revolving Credit Loans.

     (d) Forecasts. The forecasts of financial performance of Canadian Borrower and its
subsidiaries furnished to the Lenders have been prepared in good faith by the Loan Parties and
based on assumptions believed by the Loan Parties to reasonable.

SECTION 3.05 Properties.

     (a) Generally. Each Company has good title to, valid leasehold interests in, or
license of, all its property material to its business, free and clear of all Liens except for
Permitted Liens. The property of the Companies, taken as a whole, (i) is in good operating order,
condition and repair in all material respects (ordinary wear and tear excepted) and (ii)
constitutes all the property which is required for the business and operations of the Companies as
presently conducted.

     (b) Real Property. Schedules 8(a) and 8(b) to the Perfection
Certificate dated the Closing Date contain a true and complete list of each interest in Real
Property (i) owned by any Loan Party as of the date hereof having fair market value of $1 million
or more and describes the type of interest therein held by such Loan Party and whether such owned
Real Property is leased to a third party and (ii) leased, subleased or otherwise occupied or
utilized by any Loan Party, as lessee, sublessee, franchisee or licensee, as of the date hereof
having annual rental payments of $1 million or more and describes the type of interest therein held
by such Loan Party.

     (c) No Casualty Event. No Company has as of the date hereof received any notice of,
nor has any knowledge of, the occurrence or pendency or contemplation of any Casualty Event
affecting all or any material portion of its property. No Mortgage encumbers improved Real
Property located in the United States that is located in an area that has been identified by the
Secretary of Housing and Urban Development as an area having special flood hazards within the
meaning of the National Flood Insurance Act of 1968 unless flood insurance available under such Act
has been obtained in accordance with Section 5.04.

     (d) Collateral. Each Company owns or has rights to use all of the Collateral used in,
necessary for or material to each Company’s business as currently conducted, except where the
failure to have such ownership or rights of use could not reasonably be expected to have a

	 	 	 
	 
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Material Adverse Effect. The use by each Company of such Collateral does not infringe on the rights of any
person other than such infringement which could not, individually or in the aggregate, reasonably
be expected to result in a Material Adverse Effect. No claim has been made and remains outstanding
that any Company’s use of any Collateral does or may violate the rights of any third party that
could, individually or in the aggregate, reasonably be expected to result in a Material Adverse
Effect.

SECTION 3.06 Intellectual Property.

     (a) Ownership/No Claims. Each Loan Party owns, or is licensed to use, all patents,
software, trademarks, mask works, inventions, designs, trade names, service marks, copyrights,
technology, trade secrets, proprietary information and data, domain names, know-how, processes and
other comparable intangible rights necessary for the conduct of its business as currently conducted
(“Intellectual Property”), except for those the failure to own or license which, individually or in
the aggregate, could not reasonably be expected to result in a Material Adverse Effect. As of the
date hereof, no material claim has been asserted and is pending by any person,
challenging or questioning the use by any Loan Party of any such Intellectual Property or the
validity or effectiveness of any such Intellectual Property, nor does any Loan Party know of any
valid basis for any such claim. The use of any Intellectual Property by each Loan Party, and the
conduct of such Loan Party’s business as currently conducted, does not infringe or otherwise
violate the rights of any person in respect of Intellectual Property, except for such claims and
infringements that, individually or in the aggregate, could not reasonably be expected to result in
a Material Adverse Effect.

     (b) Registrations. Except pursuant to non-exclusive licenses and other non-exclusive
user agreements entered into by each Loan Party in the ordinary course of business, on and as of
the date hereof (i) each Loan Party owns and possesses the right to use, and has not authorized or
enabled any other person to use, any Intellectual Property listed on any schedule to the relevant
Perfection Certificate, or any other Intellectual Property that is material to its business, and
(ii) all registrations listed in Schedule 12(a) or 12(b) to the Perfection
Certificate are valid and in full force and effect, in each case where the failure to do so or the
absence thereof could reasonably be expected to have a Material Adverse Effect.

     (c) No Violations or Proceedings. To each Loan Party’s knowledge, on and as of the
date hereof, (i) there is no material infringement or other violation by others of any right of
such Loan Party with respect to any Intellectual Property listed on any schedule to the relevant
Perfection Certificate, or any other Intellectual Property that is material to its business, except
as may be set forth on Schedule 3.06(c), and (ii) no claims are pending or threatened to
such effect except as set forth on Schedule 3.06(c).

SECTION 3.07 Equity Interests and Subsidiaries.

     (a) Equity Interests. Schedules 1(a) and 10 to the Perfection
Certificate dated the Closing Date set forth a list of (i) all the Subsidiaries of Holdings and
their jurisdictions of organization as of the Closing Date and (ii) the number of each class of its
Equity Interests authorized, and the number outstanding, on the Closing Date and the number of
shares covered by all outstanding options, warrants, rights of conversion or purchase and similar
rights at the

	 	 	 
	 
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Closing Date. As of the Closing Date, all Equity Interests of each Company held by
Holdings or a Subsidiary thereof are duly and validly issued and are fully paid and non-assessable,
and, other than the Equity Interests of Holdings, are owned by Holdings, directly or indirectly
through Wholly Owned Subsidiaries except as indicated on Schedules 1(a) and 10 to
the Perfection Certificate. All Equity Interests of Canadian Borrower are owned directly by
Holdings. As of the Closing Date, each Loan Party is the record and beneficial owner of, and has
good and marketable title to, the Equity Interests pledged by it under the Security Documents, free
of any and all Liens, rights or claims of other persons, except Permitted Liens, and as of the
Closing Date there are no outstanding warrants, options or other rights to purchase, or
shareholder, voting trust or similar agreements outstanding with respect to, or property that is
convertible into, or that requires the issuance or sale of, any such Equity Interests.

     (b) No Consent of Third Parties Required. Except as have previously been obtained, no
consent of any person including any other general or limited partner, any other member of a
limited liability company, any other shareholder or any other trust beneficiary is necessary
in connection with the creation, perfection or First Priority status of the security interest of
the Collateral Agent in any Equity Interests pledged to the Collateral Agent for the benefit of the
Secured Parties under the Security Documents or the exercise by the Collateral Agent of the voting
or other rights provided for in the Security Documents or the exercise of remedies in respect
thereof.

     (c) Organizational Chart. An accurate organizational chart, showing the ownership
structure of Holdings, Borrowers and each Subsidiary on the Closing Date is set forth on
Schedule 10 to the Perfection Certificate dated the Closing Date.

SECTION 3.08 Litigation; Compliance with Laws. There are no actions, suits or proceedings at law
or in equity by or before any Governmental Authority now pending or, to the knowledge of any
Company, threatened against or affecting any Company or any business, property or rights of any
Company (i) that involve any Loan Document or (ii) as to which there is a reasonable possibility of
an adverse determination and that, if adversely determined, could reasonably be expected,
individually or in the aggregate, to result in a Material Adverse Effect. No Company or any of its
property is in violation of, nor will the continued operation of its property as currently
conducted violate, any Requirements of Law (including any zoning or building ordinance, code or
approval or any building permits) or any restrictions of record or agreements affecting any
Company’s Real Property or is in default with respect to any Requirement of Law, where such
violation or default, individually or in the aggregate, could reasonably be expected to result in a
Material Adverse Effect.

SECTION 3.09 Agreements. No Company is a party to any agreement or instrument or subject to any
corporate or other constitutional restriction that has resulted or could reasonably be expected to
result in a Material Adverse Effect. No Company is in default in any manner under any provision of
any indenture or other agreement or instrument evidencing Indebtedness, or any other agreement or
instrument to which it is a party or by which it or any of its property is or may be bound, where
such default could reasonably be expected to result in a Material Adverse Effect. There is no
existing default under any Organizational Document of any Company or any event which, with the
giving of notice or passage of time or both, would constitute a default by any party thereunder
that in each case could reasonably be expected to

	 	 	 
	 
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have an adverse effect on the Agents or the Lenders or their respective rights and benefits hereunder.

SECTION 3.10 Federal Reserve Regulations. No Company is engaged principally, or as one of its
important activities, in the business of extending credit for the purpose of buying or carrying
Margin Stock. No part of the proceeds of any Loan will be used, whether directly or indirectly,
and whether immediately, incidentally or ultimately, for any purpose that entails a violation of,
or that is inconsistent with, the provisions of the regulations of the Board, including Regulation
T, U or X. The pledge of the Securities Collateral pursuant to the Security Documents does not
violate such regulations.

SECTION 3.11 Investment Company Act. No Company is an “investment company” or a company
“controlled” by an “investment company,” as defined in, or subject to regulation under, the
Investment Company Act of 1940, as amended.

SECTION 3.12 Use of Proceeds. Borrowers will use the proceeds of (a) the Loans on the Closing Date
for the Refinancing and for payment of fees, premiums and expenses in connection with the
Transactions and (b) any Incremental Term Loans after the Closing Date for general corporate
purposes (including to effect Permitted Acquisitions); provided that in no event shall any
proceeds of any Loans (including any Incremental Term Loans) be remitted, directly or indirectly,
to any Swiss tax resident Company or Swiss tax resident permanent establishment, where this
remittance could be viewed as a use of such proceeds in Switzerland (whether through an
intercompany loan or advance by any other Company or otherwise) as per the practice of the Swiss
Federal Tax Administration, unless the Swiss Federal Tax Administration confirms in a written
advance tax ruling (based on a fair description of the fact pattern in the tax ruling request made
by a Loan Party) that such use of proceeds in Switzerland does not lead to Swiss Withholding Tax
becoming due on or in respect any Loans (including any Incremental Term Loans) or parts thereof.

SECTION 3.13 Taxes. Each Company has (a) timely filed or caused to be timely filed all material
Tax Returns required to have been filed by it and (b) duly and timely paid, collected or remitted
or caused to be duly and timely paid, collected or remitted all material Taxes due and payable,
collectible or remittable by it and all assessments received by it, except Taxes (i) that are being
contested in good faith by appropriate proceedings and for which such Company has set aside on its
books adequate reserves in accordance with GAAP or other applicable accounting rules and (ii) which
could not, individually or in the aggregate, reasonably be expected to have a Material Adverse
Effect. Each Company has made adequate provision in accordance with GAAP or other applicable
accounting rules for all material Taxes not yet due and payable. Each Company is unaware of any
proposed or pending tax assessments, deficiencies or audits that could be reasonably expected to,
individually or in the aggregate, result in a Material Adverse Effect. No Company has ever been a
party to any understanding or arrangement constituting a “tax shelter” within the meaning of
Section 6111(c), Section 6111(d) or Section 6662(d)(2)(C)(iii) of the Code, or has ever
“participated” in a “reportable transaction” within the meaning of Treasury Regulation Section
1.6011-4, except as could not be reasonably expected to, individually or in the aggregate, result
in a Material Adverse Effect.

	 	 	 
	 
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SECTION 3.14 No Material Misstatements. The written information (including the Confidential
Information Memorandum), reports, financial statements, certificates, exhibits or schedules
furnished by or on behalf of any Company to any Agent or any Lender in connection with the
negotiation of any Loan Document or included therein or delivered pursuant thereto, taken as a
whole, did not and does not contain
any material misstatement of fact and, taken as a whole, did not and does not omit to state
any material fact necessary to make the statements therein, in the light of the circumstances under
which they were or are made, not materially misleading in their presentation of Holdings and its
Subsidiaries taken as a whole as of the date such information is dated or certified;
provided that to the extent any such information, report, financial statement, exhibit or
schedule was based upon or constitutes a forecast or projection, each Loan Party represents only
that it was prepared in good faith and based on assumptions believed by the applicable Loan Parties
to be reasonable.

SECTION 3.15 Labor Matters. As of the Closing Date, there are no strikes, lockouts or labor
slowdowns against any Company pending or, to the knowledge of any Company, threatened. The hours
worked by and payments made to employees of any Company have not been in violation of the Fair
Labor Standards Act of 1938, as amended, or any other applicable federal, state, provincial, local
or foreign law dealing with such matters in any manner which could reasonably be expected to result
in a Material Adverse Effect. All payments due from any Company, or for which any claim may be
made against any Company, on account of wages and employee health and welfare insurance and other
benefits, have been paid or accrued as a liability on the books of such Company except where the
failure to do so could not reasonably be expected to result in a Material Adverse Effect. The
consummation of the Hindalco Acquisition did not and will not, and consummation of the Transactions
will not, give rise to any right of termination or right of renegotiation on the part of any union
under any collective bargaining agreement to which any Company is bound, except as could not
reasonably be expected to result in a Material Adverse Effect.

SECTION 3.16 Solvency. At the time of and immediately after the consummation of the Transactions
to occur on the Closing Date, and at the time of and immediately following the making of the
initial Credit Extension under any Incremental Term Loan Commitments and after giving effect to the
application of the proceeds of each Loan and the operation of the Contribution, Intercompany,
Contracting and Offset Agreement, (a) the fair value of the assets of each Loan Party (individually
and on a consolidated basis with its Subsidiaries) will exceed its debts and liabilities,
subordinated, contingent, prospective or otherwise; (b) the present fair saleable value of the
property of each Loan Party (individually and on a consolidated basis with its Subsidiaries) will
be greater than the amount that will be required to pay the probable liability of its debts and
other liabilities, subordinated, contingent, prospective or otherwise, as such debts and other
liabilities become absolute and matured; (c) each Loan Party (individually and on a consolidated
basis with its Subsidiaries) will be able to pay its debts and liabilities, subordinated,
contingent, prospective or otherwise, as such debts and liabilities become absolute and matured;
(d) each Loan Party (individually and on a consolidated basis with its Subsidiaries) will not have
unreasonably small capital with which to conduct its business in which it is engaged as such
business is now conducted and is proposed to be conducted following the Closing Date; and (e) each
Loan Party is not “insolvent” as such term is defined under any bankruptcy, insolvency or similar
laws of any jurisdiction in which any Loan Party is organized or incorporated (as applicable), or
otherwise unable to pay its debts as they fall due.

	 	 	 
	 
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SECTION 3.17 Employee Benefit Plans. Each Company and its ERISA Affiliates is in compliance in all
material respects with the applicable provisions of ERISA and the Code and the regulations and
published interpretations thereunder except for such non-compliance that in the aggregate would not
have a Material Adverse Effect. No ERISA Event has occurred or is reasonably expected to occur
that, when taken together with all other such ERISA Events, could reasonably be expected to result
in a Material Adverse Effect or the imposition of a Lien on any of the property of any Company.
The present value of all accumulated benefit obligations of all underfunded Plans (based on the
assumptions used for purposes of Statement of Financial Accounting Standards No. 87) did not, as of
the date of the most recent financial statements reflecting such amounts, exceed the fair market
value of the property of all such underfunded Plans in an amount which could reasonably be expected
to have a Material Adverse Effect. Using actuarial assumptions and computation methods consistent
with subpart I of subtitle E of Title IV of ERISA, the aggregate liabilities of each Company or its
ERISA Affiliates to all Multiemployer Plans in the event of a complete withdrawal therefrom, as of
the close of the most recent fiscal year of each such Multiemployer Plan, could not reasonably be
expected to result in a Material Adverse Effect.

          To the extent applicable, each Foreign Plan has been maintained in compliance with its terms
and with the requirements of any and all applicable Requirements of Law and has been maintained,
where required, in good standing with applicable Governmental Authority and Taxing Authority,
except for such non-compliance that in the aggregate would not have a Material Adverse Effect. No
Company has incurred any obligation in connection with the termination of or withdrawal from any
Foreign Plan, except to the extent of liabilities which could not reasonably be expected to have a
Material Adverse Effect. The present value of the accrued benefit liabilities (whether or not
vested) under each Foreign Plan which is funded, determined as of the end of the most recently
ended fiscal year of the respective Company on the basis of actuarial assumptions, each of which is
reasonable, did not exceed the current value of the property of such Foreign Plan, and for each
Foreign Plan which is not funded, the obligations of such Foreign Plan are properly accrued in the
financial statements of Canadian Borrower and its Subsidiaries, in each case in an amount that
could not reasonably be expected to have a Material Adverse Effect.

          Except as specified on Schedule 3.17, (i) no Company is or has at any time been an
employer (for the purposes of Sections 38 to 51 of the Pensions Act 2004) of an occupational
pension scheme which is not a money purchase scheme (both terms as defined in the Pensions Schemes
Act 1993), and (ii) no Company is or has at any time been “connected” with or an “associate” of (as
those terms are used in Sections 39 and 43 of the Pensions Act 2004) such an employer.

SECTION 3.18 Environmental Matters.

     (a) Except as, individually or in the aggregate, could not reasonably be expected to result in
a Material Adverse Effect:

               (i) The Companies and their businesses, operations and Real Property are in compliance with,
and the Companies have no liability under, any applicable Environmental Law;

	 	 	 
	 
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               (ii) The Companies have obtained all Environmental Permits required for the conduct of their
businesses and operations, and the ownership, operation and use of their property, under
Environmental Law, all such Environmental Permits are valid and in good standing;

               (iii) There has been no Release or threatened Release of Hazardous Material on, at, under or
from any Real Property or facility presently or formerly owned, leased or operated by the Companies
or their predecessors in interest that could reasonably be expected to result in liability of the
Companies under any applicable Environmental Law;

               (iv) There is no Environmental Claim pending or, to the knowledge of the Companies, threatened
against the Companies, or relating to the Real Property currently or formerly owned, leased or
operated by the Companies or their predecessors in interest or relating to the operations of the
Companies, and, to the best knowledge of the Loan Parties after due inquiry, there are no actions,
activities, circumstances, conditions, events or incidents that could reasonably be expected to
form the basis of such an Environmental Claim;

               (v) No Lien has been recorded or, to the knowledge of any Company, threatened under any
Environmental Law with respect to any Real Property or other assets of the Companies;

               (vi) The execution, delivery and performance of this Agreement and the consummation of the
transactions contemplated hereby will not require any notification, registration, filing,
reporting, disclosure, investigation, remediation or cleanup pursuant to any Governmental Real
Property Disclosure Requirements or any other applicable Environmental Law; and

               (vii) No person with an indemnity or contribution obligation to the Companies relating to
compliance with or liability under Environmental Law is in default with respect to such obligation.

     (b) As of the Closing Date:

               (i) Except as could not reasonably be expected to have a Material Adverse Effect, no Company
is obligated to perform any action or otherwise incur any expense under Environmental Law pursuant
to any order, decree, judgment or agreement by which it is bound or has assumed by contract,
agreement or operation of law, and no Company is conducting or financing any Response pursuant to
any Environmental Law with respect to any Real Property or any other location; and

               (ii) No Real Property or facility owned, operated or leased by the Companies and, to the
knowledge of the Companies, no Real Property or facility formerly owned, operated or leased by the
Companies or any of their predecessors in interest is (i) listed or proposed for listing on the
National Priorities List promulgated pursuant to CERCLA or (ii) listed on the Comprehensive
Environmental Response, Compensation and Liability Information System
promulgated pursuant to CERCLA or (iii) included on any similar publicly available list
maintained by any Governmental Authority including any such list relating to petroleum.

	 	 	 
	 
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SECTION 3.19 Insurance. Schedule 3.19 sets forth a true and correct description of all
insurance policies maintained by each Company as of the Closing Date. All insurance maintained by
the Companies and required by Section 5.04 is in full force and effect, and all premiums
thereon have been duly paid. As of the Closing Date, no Company has received notice of violation
or cancellation thereof, the Mortgaged Property, and the use, occupancy and operation thereof,
comply in all material respects with all Insurance Requirements, and there exists no material
default under any Insurance Requirement. Each Company has insurance in such amounts and covering
such risks and liabilities as are customary for companies of a similar size engaged in similar
businesses in similar locations.

SECTION 3.20 Security Documents.

     (a) U.S. Security Agreement. The U.S. Security Agreement is effective to create in
favor of the Collateral Agent for the benefit of the Secured Parties, legal, valid and enforceable
Liens on, and security interests in, the Security Agreement Collateral referred to therein and,
when (i) financing statements and other filings in appropriate form are filed in the offices
specified on Schedule 7 to the relevant Perfection Certificate as in effect on the Closing
Date and (ii) upon the taking of possession or control by the Collateral Agent of the Security
Agreement Collateral with respect to which a security interest may be perfected only by possession
or control (which possession or control shall be given to the Collateral Agent to the extent
possession or control by the Collateral Agent is required by each Security Agreement), the Liens
created by the Security Agreement shall constitute valid, perfected First Priority Liens on, and
security interests in, all right, title and interest of the grantors thereunder in the Security
Agreement Collateral (other than such Security Agreement Collateral in which a security interest
cannot be perfected under the UCC as in effect at the relevant time in the relevant jurisdiction),
in each case subject to no Liens other than Permitted Liens.

     (b) Canadian Security Agreement. Each of the Canadian Security Agreements is
effective to create in favor of the Collateral Agent for the benefit of the Secured Parties, legal,
valid and enforceable Liens on, and security interests in, the Security Agreement Collateral
referred to therein and, when PPSA financing statements and other filings in appropriate form are
filed in the offices specified on Schedule 7 to the relevant Perfection Certificate as in
effect on the Closing Date, the Liens created by such Canadian Security Agreement shall constitute
valid, perfected First Priority Liens on, and security interests in, all right, title and interest
of the grantors thereunder in the Security Agreement Collateral referred to therein (other than
such Security Agreement Collateral in which a security interest cannot be perfected under the PPSA
as in effect at the relevant time in the relevant jurisdiction), in each case subject to no Liens
other than Permitted Liens.

     (c) U.K. Security Agreement. The U.K. Security Agreement is effective to create in
favor of the Collateral Agent for the benefit of the Secured Parties, legal, valid and enforceable
Liens on, and security interests in, the Security Agreement Collateral referred to therein and,
upon the registration specified on Schedule 7 to the relevant Perfection Certificate as in
effect on the Closing Date, the Liens created by the U.K. Security Agreement shall constitute
valid, perfected First Priority Liens on, and security interests in, all right, title and interest
of the grantors thereunder in the Security Agreement Collateral referred to therein (other than
such Security Agreement Collateral in which a security interest cannot be perfected under
applicable

	 	 	 
	 
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law as in effect at the relevant time in the relevant jurisdiction), in each case
subject to no Liens other than Permitted Liens.

     (d) Swiss Security Agreement. The Swiss Security Agreement is effective to create in
favor of the Collateral Agent for the benefit of the Secured Parties, legal, valid and enforceable
Liens on, and security interests in, the Security Agreement Collateral referred to therein and,
upon the registrations, recordings and other actions specified on Schedule 7 to the
relevant Perfection Certificate as in effect on the Closing Date, the Liens created by the Swiss
Security Agreement shall constitute valid, perfected First Priority Liens on, and security
interests in, all right, title and interest of the grantors thereunder in the Security Agreement
Collateral referred to therein (other than such Security Agreement Collateral in which a security
interest cannot be perfected under applicable law as in effect at the relevant time in the relevant
jurisdiction), in each case subject to no Liens other than Permitted Liens.

     (e) German Security Agreement. The German Security Agreement is effective to create
in favor of the Collateral Agent for the benefit of the Secured Parties, or in the case of
accessory security, in favor of the Secured Parties, legal, valid and enforceable Liens on, and
security interests in, the Security Agreement Collateral referred to therein and, upon the
registrations, recordings and other actions specified on Schedule 7 to the relevant
Perfection Certificate as in effect on the Closing Date, the Liens created by the German Security
Agreement shall constitute valid, perfected First Priority Liens on, and security interests in, all
right, title and interest of the grantors thereunder in the Security Agreement Collateral referred
to therein (other than such Security Agreement Collateral in which a security interest cannot be
perfected under applicable law as in effect at the relevant time in the relevant jurisdiction), in
each case subject to no Liens other than Permitted Liens.

     (f) Irish Security Agreement. The Irish Security Agreement is effective to create in
favor of the Collateral Agent for the benefit of and as trustee for the Secured Parties, legal,
valid and enforceable Liens on, and security interests in, the Security Agreement Collateral
referred to therein and, upon the registrations, recordings and other actions specified on
Schedule 7 to the relevant Perfection Certificate as in effect on the Closing Date, the
Liens created by the Irish Security Agreement shall constitute valid, perfected First Priority
Liens on, and security interests in, all right, title and interest of the grantors thereunder in
the Security Agreement Collateral referred to therein (other than such Security Agreement
Collateral in which a security interest cannot be perfected under applicable law as in effect at
the relevant time in the relevant jurisdiction), in each case subject to no Liens other than
Permitted Liens.

     (g) Brazilian Security Agreement. Each Brazilian Security Agreement is effective to
create in favor of the Collateral Agent for the benefit of the Secured Parties, legal, valid and
enforceable Liens on, and security interests in, the Security Agreement Collateral referred to
therein and, upon the registrations, recordings and other actions specified on Schedule 7
to the relevant Perfection Certificate as in effect on the Closing Date, the Liens created by each
of the Brazilian Security Agreement shall constitute valid, perfected First Priority Liens on, and
security interests in, all right, title and interest of the grantors thereunder in the Security
Agreement Collateral referred to therein (other than such Security Agreement Collateral in which a
security interest cannot be perfected under applicable law as in effect at the relevant time in the
relevant jurisdiction), in each case subject to no Liens other than Permitted Liens.

	 	 	 
	 
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     (h) Intellectual Property Filings. When the (i) financing statements and other
filings in appropriate form referred to on Schedule 7 to the relevant Perfection
Certificate have been made, and (ii) U.S. Security Agreement or a short form thereof is filed in
the United States Patent and Trademark Office and the United States Copyright Office, the Liens
created by such Security Agreement shall constitute valid, perfected First Priority Liens on, and
security interests in, all right, title and interest of the grantors thereunder in Patents and
Trademarks (each as defined in such Security Agreement) that are registered or applied for by any
Loan Party with the United States Patent and Trademark Office or Copyrights (as defined in such
Security Agreement) registered or applied for by any Loan Party with the United States Copyright
Office, as the case may be, in each case subject to no Liens other than Permitted Liens.

     (i) Mortgages. Each Mortgage (other than a Mortgage granted by a U.K. Guarantor) is
effective to create, in favor of the Collateral Agent, for its benefit and the benefit of the
Secured Parties, legal, valid, perfected and enforceable First Priority Liens on, and security
interests in, all of the Loan Parties’ right, title and interest in and to the Mortgaged Properties
thereunder and the proceeds thereof, subject only to Permitted Liens, and when such Mortgages are
filed in the offices specified on Schedule 8(a) to the applicable Perfection Certificates
dated the Closing Date (or, in the case of any Mortgage executed and delivered after the date
thereof in accordance with the provisions of Sections 5.11 and 5.12, when such
Mortgage is filed in the offices specified in the local counsel opinion delivered with respect
thereto in accordance with the provisions of Sections 5.11 and 5.12), the Mortgages
shall constitute First Priority fully perfected Liens on, and security interests in, all right,
title and interest of the Loan Parties in the Mortgaged Properties and the proceeds thereof, in
each case prior and superior in right to any other person, other than Permitted Liens.

     The Mortgages granted by each applicable U.K. Guarantor under the relevant U.K. Security
Agreement are effective to create in favor of the Collateral Agent, for the ratable benefit of the
Secured Parties, legal, valid and enforceable Liens on all of each such Loan Party’s right, title
and interest in and to the Mortgaged Property thereunder and the proceeds thereof, and when the
Mortgages are filed with the Land Registry, the Mortgages shall constitute fully perfected First
Priority Liens on, and security interest in, all right, title and interest of the U.K. Borrower and
each applicable U.K. Guarantor in such Mortgaged Property and the proceeds thereof, in each case
prior and superior in right to any other Person, other than with respect to the rights of Persons
pursuant to Permitted Liens.

     (j) Valid Liens. Each Security Document delivered pursuant to Sections 5.11
and 5.12 will, upon execution and delivery thereof, be effective to create in favor of the
Collateral Agent, for the benefit of the Secured Parties, legal, valid and enforceable Liens on,
and security interests in, all of the Loan Parties’ right, title and interest in and to the Collateral
thereunder, and (i) when all appropriate filings, registrations or recordings and other actions set
forth in the relevant Perfection Certificate are made in the appropriate offices as may be required
under applicable law and (ii) upon the taking of possession or control by the Collateral Agent of
such Collateral with respect to which a security interest may be perfected only by possession or
control (which possession or control shall be given to the Collateral Agent to the extent required
by any Security Document), such Security Document will constitute First Priority fully perfected
Liens on, and security interests in, all right, title and interest of the Loan Parties in such
Collateral, in each case subject to no Liens other than the applicable Permitted Liens.

	 	 	 
	 
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     (k) Receivables Purchase Agreement. The Receivables Purchase Agreement is in full
force and effect. Each representation and warranty under the Receivables Purchase Agreement of
each Loan Party party thereto is true and correct on and as of the date made thereunder. No
“Termination Event” (as defined therein) has occurred under the Receivables Purchase Agreement.

SECTION 3.21 Acquisition Documents; Material Indebtedness Documents; Representations and Warranties in
Acquisition Agreement. Schedule 3.21 lists, as of the Closing Date, (i) the
Acquisition Agreement and each material agreement, certificate, instrument, letter or other
document delivered pursuant to the Acquisition Agreement or otherwise entered into, executed or
delivered by any Loan Party or Acquiror in connection with the Hindalco Acquisition (each, an
“Acquisition Document”), (ii) each material Senior Note Document, (iii) each material Revolving
Credit Loan Document, (iv) each material agreement, certificate, instrument, letter or other
document delivered pursuant to the Subordinated Debt Loan, and (v) each material agreement,
certificate, instrument, letter or other document evidencing any other Material Indebtedness, and
the Lenders have been furnished true and complete copies of each of the foregoing. All
representations and warranties of each Company set forth in the Acquisition Agreement were true and
correct in all material respects as of the time such representations and warranties were made and
no default has occurred under the Acquisition Agreement.

SECTION 3.22 Anti-Terrorism Law. No Loan Party and, to the knowledge of the Loan Parties, none of
its Affiliates is in violation of any Requirement of Law relating to terrorism or money laundering
(“Anti-Terrorism Laws”), including Executive Order No. 13224 on Terrorist Financing, effective
September 24, 2001 (the “Executive Order”), and the Uniting and Strengthening America by Providing
Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001, Public Law 107-56.

          No Loan Party and to the knowledge of the Loan Parties, no Affiliate or broker or other agent
of any Loan Party acting or benefiting in any capacity in connection with the Loans is any of the
following:

               (i) a person that is listed in the annex to, or is otherwise subject to the provisions of, the
Executive Order;

               (ii) a person owned or controlled by, or acting for or on behalf of, any person that is listed
in the annex to, or is otherwise subject to the provisions of, the Executive Order;

               (iii) a person with which any Lender is prohibited from dealing or otherwise engaging in any
transaction by any Anti-Terrorism Law;

               (iv) a person that commits, threatens or conspires to commit or supports “terrorism”
as
defined in the Executive Order; or

               (v) a person that is named as a “specially designated national and blocked person” on
the most
current list published by the U.S. Treasury Department Office of Foreign Assets Control (“OFAC”) at
its official website or any replacement website or other replacement official publication of such
list.

	 	 	 
	 
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          No Loan Party and, to the knowledge of the Loan Parties, no broker or other agent of any Loan
Party acting in any capacity in connection with the Loans (x) conducts any business or engages in
making or receiving any contribution of funds, goods or services to or for the benefit of any
person described in clauses (i) through (v) above, (y) deals in, or otherwise engages in any
transaction relating to, any property or interests in property blocked pursuant to the Executive
Order, or (z) engages in or conspires to engage in any transaction that evades or avoids, or has
the purpose of evading or avoiding, or attempts to violate, any of the prohibitions set forth in
any Anti-Terrorism Law.

SECTION 3.23 [INTENTIONALLY OMITTED].

SECTION 3.24 Location of Material Inventory and Equipment. Schedule 3.24 sets forth as of
the Closing Date all locations where the aggregate value of Inventory and Equipment (other than
mobile Equipment or Inventory in transit) owned by the Loan Parties exceeds $1 million.

SECTION 3.25 [INTENTIONALLY OMITTED].

SECTION 3.26 Senior Notes; Material Indebtedness. The Obligations constitute “Senior Debt” or
“Designated Senior Indebtedness” (or any other defined term having a similar purpose) within the
meaning of the Senior Note Documents (and any Permitted Refinancings thereof permitted under
Section 6.01 other than refinancings with Incremental Term Loans). The Commitments and the
Loans and other extensions of credit under the Loan Documents constitute “Credit Facilities” (or
any other defined term having a similar purpose) or liabilities payable under the documentation
related to “Credit Facilities” (or any other defined term having a similar purpose), in each case,
within the meaning of the Senior Note Documents (and any Permitted Refinancings thereof permitted
under Section 6.01 other than refinancings with Incremental Term Loans). The consummation
of each of (i) the Hindalco
Acquisition, (ii) the Transactions, (iii) each incurrence of Indebtedness hereunder and (iv)
the granting of the Liens provided for under the Security Documents to secure the Secured
Obligations is permitted under, and, in each case, does not require any consent or approval under,
the terms of (A) the Senior Note Documents (and any Permitted Refinancings thereof), the Revolving
Credit Loan Documents (and any Permitted Revolving Credit Facility Refinancings thereof) or any
other Material Indebtedness or (B) any other material agreement or instrument binding upon any
Company or any of its property except, in the case of this clause (B), as could not reasonably be
expected to result in a Material Adverse Effect.

SECTION 3.27 Centre of Main Interests and Establishments. For the purposes of The Council of the
European Union Regulation No. 1346/2000 on Insolvency Proceedings (the “Regulation”), (i) the
centre of main interest (as that term is used in Article 3(1) of the Regulation) of each U.K.
Guarantor is situated in England and Wales, (ii) the centre of main interest of each Irish
Guarantor is situated in Ireland, and in each case each has no “establishment” (as that term is
used in Article 2(h) of the Regulation) in any other jurisdiction and (iii) the centre of main
interest of each Swiss Guarantor is situated in Switzerland, and in each case each has no
“establishment” (as that term is used in Article 2(h) of the Regulation) in any other jurisdiction,
and (iv) the centre of main interest of German Seller is situated in Germany.

	 	 	 
	 
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SECTION 3.28 Holding and Dormant Companies. Except as may arise under the Loan Documents, the
Revolving Credit Loan Documents or (in the case of Novelis Europe Holdings Limited) the Senior
Notes, neither Holdings nor Novelis Europe Holdings Limited trades or has any liabilities or
commitments (actual or contingent, present or future) other than liabilities attributable or
incidental to acting as a holding company of shares in the Equity Interests of its Subsidiaries.

SECTION 3.29 Hindalco Acquisition. The Hindalco Acquisition was consummated on the Acquisition
Closing Date in all material respects in accordance with the terms and conditions of the
Acquisition Agreement, without the waiver or amendment of any such terms or conditions not approved
by the Administrative Agent and the Arrangers other than any waiver or amendment thereof that was
not materially adverse to the interests of the Lenders.

SECTION 3.30 Excluded Collateral Subsidiaries. The Excluded Collateral Subsidiaries as of the
Closing Date are listed on Schedule 1.01(c).

SECTION 3.31 Immaterial Subsidiaries. The Immaterial Subsidiaries as of the Closing Date are
listed on Schedule 1.01(d).

ARTICLE IV.

CONDITIONS TO CREDIT EXTENSIONS

SECTION 4.01 Conditions to Initial Credit Extension. The obligation of each Lender to fund the
initial Credit Extension requested to be made by it shall be subject to the prior or concurrent
satisfaction of each of the conditions precedent set forth in this Section 4.01.

     (a) Loan Documents. The Administrative Agent shall have received executed
counterparts of each of the following, properly executed by a Responsible Officer of each
applicable signing Loan Party, each in form and substance reasonably satisfactory to the
Administrative Agent and its legal counsel:

          (i) this Agreement,

          (ii) each Foreign Guaranty;

          (iii) the Intercreditor Agreement;

          (iv) the Contribution, Intercompany, Contracting and Offset Agreement;

          (v) the Receivables Purchase Agreement;

          (vi) a Note executed by each applicable Borrower in favor of each Lender that has requested a
Note prior to the Closing Date;

          (vii) the U.S. Security Agreement, each Canadian Security Agreement, each U.K. Security
Agreement, each Swiss Security Agreement, each German Security Agreement,

	 	 	 
	 
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each Irish Security Agreement, each Brazilian Security Agreement and each other Security Document requested by the
Administrative Agent prior to the Closing Date; and

          (viii) the Perfection Certificates.

     (b) Corporate Documents. The Administrative Agent shall have received:

          (i) a certificate of the secretary, assistant secretary or managing director (where
applicable) of each Loan Party dated the Closing Date, certifying (A) that attached thereto is a
true and complete copy of each Organizational Document (or its equivalent including the
constitutional documents) of such Loan Party certified (to the extent customary in the applicable
state) as of a recent date by the Secretary of State (or equivalent Governmental Authority) of the
jurisdiction of its organization, (B) that attached thereto is a true and complete copy of
resolutions duly adopted by the Board of Directors and/or shareholders, as applicable, of such Loan
Party authorizing the execution, delivery and performance of the Loan Documents to which such
person is a party and, in the case of Borrowers, the borrowings hereunder, and that such
resolutions, or any other document attached thereto, have not been modified, rescinded, amended or
superseded and are in full force and effect, (C) as to the incumbency and specimen
signature of each officer executing any Loan Document or any other document delivered in
connection herewith on behalf of such Loan Party (together with a certificate of another officer as
to the incumbency and specimen signature of the secretary, assistant secretary or managing director
executing the certificate in this clause (i), and other customary evidence of incumbency) and (D)
that the borrowing, guarantee, or granting of Liens with respect to the Loans or any of the other
Secured Obligations would not cause any borrowing, guarantee, security or similar limit binding on
any Loan Party to be exceeded;

          (ii) a certificate as to the good standing (where applicable, or such other customary
functionally equivalent certificates or abstracts) of each Loan Party (in so-called “long-form” if
available) as of a recent date, from such Secretary of State (or other applicable Governmental
Authority);

          (iii) evidence that the records of the applicable Loan Parties at the United Kingdom Companies
House and each other relevant registrar of companies (or equivalent Governmental Authority) in the
respective jurisdictions of organization of the Loan Parties are accurate, complete and up to date
and that the latest relevant accounts have been duly filed, where applicable;

          (iv) if relevant, evidence that each Irish Guarantor has done all that is necessary to follow
the procedures set out in Sub-Sections (2) and (11) of section 60 of the Companies Act 1963 of
Ireland in order to enable it to enter into the Loan Documents;

          (v) a copy of the constitutional documents of any Person incorporated in Ireland whose shares
are subject to security under any Security Document, together with any resolutions of the
shareholders of such Person adopting such changes to the constitutional documents of that Person to
remove any restriction on any transfer of shares or partnership interests (or equivalent) in such
Person pursuant to any enforcement of any such Security Document;

	 	 	 
	 
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          (vi) evidence that each of the Loan Parties are members of the same group of companies
consisting of a holding company and its subsidiaries for the purposes of Section 155 of the
Companies Act 1963 of Ireland and Section 35 of the Companies Act 1990 of Ireland; and

          (vii) such other documents as the Lenders or the Administrative Agent may reasonably request.

     (c) Officers’ Certificate. The Administrative Agent shall have received a
certificate, dated the Closing Date and signed by a Responsible Officer of Canadian Borrower,
certifying (i) compliance with the conditions precedent set forth in this Section 4.01 and
Section 4.02(b) and (c), (ii) as to the absence of any Acquisition Material Adverse
Effect from September 30, 2006, through the Acquisition Closing Date, (iii) that the
representations and warranties of each Company set forth in the Acquisition Agreement shall have
been true and correct (without giving effect to any materiality qualifiers set forth therein) as of
the Acquisition Closing Date as if made on and as of such date (except (a) to the extent such
representations and warranties speak solely as of an earlier date, in which event such
representations and warranties shall be true and correct to such extent as of such earlier date,
(b) other than in the case of the representations and
warranties specifically referred to in clause (c) below, to the extent that facts or matters
as to which such representations and warranties are not so true and correct as of such dates,
individually or in the aggregate, have not had and would not have a Acquisition Material Adverse
Effect, and (c) in the case of the representations and warranties set forth in Section 3.03 of the
Acquisition Agreement such representations and warranties shall have been true and correct in all
material respects), (iv) that each of the representations and warranties made by any Loan Party set
forth in ARTICLE III hereof or in any other Loan Document were true and correct in all
material respects on and as of the Closing Date, except to the extent such representations and
warranties expressly related to an earlier date, in which case such representation and warranty
shall have been true and correct in all material respects as of such earlier date.

     (d) Financings and Other Transactions, etc.

          (i) (A) The Hindalco Acquisition shall have been consummated in all material respects in
accordance with the terms of the Acquisition Agreement, without the waiver or amendment of any such
terms not approved by the Administrative Agent and the Arrangers other than any waiver or amendment
thereof that is not materially adverse to the interests of the Lenders and (B) the Transactions
shall have been consummated or shall be consummated simultaneously on the Closing Date, in each
case in all material respects in accordance with the terms hereof and the terms of the Transaction
Documents, without the waiver or amendment of any such terms not approved by the Administrative
Agent and the Arrangers other than any waiver or amendment thereof that is not materially adverse
to the interests of the Lenders..

          (ii) The Loan Parties that are borrowers under the Revolving Credit Agreement shall have
contemporaneously received an aggregate amount equal to the Dollar Equivalent of approximately $550
million in gross proceeds from borrowings under the Revolving Credit Agreement.

	 	 	 
	 
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          (iii) The Refinancing shall be consummated contemporaneously with the transactions
contemplated hereby in full to the satisfaction of the Lenders with all Liens in favor of the
existing lenders being unconditionally released; the Administrative Agent shall have received a
“pay-off” letter in form and substance reasonably satisfactory to the Administrative Agent with
respect to all debt being refinanced in the Refinancing; and the Administrative Agent shall have
received from any person holding any Lien securing any such debt, such UCC termination statements,
mortgage releases, releases of assignments of leases and rents, releases of security interests in
Intellectual Property and other instruments, in each case in proper form for recording, as the
Administrative Agent shall have reasonably requested to release and terminate of record the Liens
securing such debt.

     (e) Financial Statements; Pro Forma Balance Sheet; Projections. The Administrative
Agent shall have received the financial statements described in Section 3.04(a) and the pro
forma capitalization table described in Section 3.04(c), together with forecasts of the
financial performance of the Companies.

     (f) Indebtedness and Minority Interests. After giving effect to the Transactions and
the other transactions contemplated hereby, no Company shall have outstanding any
Indebtedness or preferred stock other than (i) the Loans hereunder, (ii) the Revolving Credit
Loans and other extensions of credit under the Revolving Credit Agreement, (iii) the Senior Notes,
(iv) the Subordinated Debt Loan, (v) the Indebtedness listed on Schedule 6.01(b), (vi)
Indebtedness owed to, and preferred stock held by, any Borrower or any Guarantor to the extent
permitted hereunder and (vii) other Indebtedness permitted under Section 6.01.

     (g) Opinions of Counsel. The Administrative Agent shall have received, on behalf of
itself, the other Agents, the Arrangers, the Lenders, (i) a favorable written opinion of Torys LLP,
special counsel for the Loan Parties, (ii) a favorable written opinion of each local and foreign
counsel of the Loan Parties listed on Schedule 4.01(g), in each case (A) dated the Closing
Date, (B) addressed to the Agents and the Lenders and (C) covering the matters set forth in
Exhibit N and such other matters relating to the Loan Documents and the Transactions as the
Administrative Agent shall reasonably request, and (iii) a copy of each legal opinion (if any)
delivered in connection with the Hindalco Acquisition.

     (h) Solvency Certificate. The Administrative Agent shall have received a solvency
certificate in the form of Exhibit O (or in such other form as is satisfactory to the
Administrative Agent to reflect applicable legal requirements), dated the Closing Date and signed
by a senior Financial Officer of each Loan Party or of Canadian Borrower.

     (i) Requirements of Law. The Administrative Agent shall be satisfied that Holdings,
its Subsidiaries and the Transactions shall be in full compliance with all material Requirements of
Law, including Regulations T, U and X of the Board, and shall have received satisfactory evidence
of such compliance reasonably requested by them.

     (j) Consents. All approvals of Governmental Authorities and third parties (i)
required to be obtained under the Hindalco Acquisition Agreement or (ii) necessary to consummate
the Transactions shall been obtained and shall be in full force and effect.

	 	 	 
	 
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     (k) Litigation. There shall be no governmental or judicial action, actual or
threatened, that has or would have, singly or in the aggregate, a reasonable likelihood of
restraining, preventing or imposing burdensome conditions on the Transactions or the Hindalco
Acquisition.

     (l) Sources and Uses. The sources and uses of the Loans shall be as set forth in
Schedule 4.01(l).

     (m) Fees. The Arrangers and Administrative Agent shall have received all Fees and
other amounts due and payable on or prior to the Closing Date, including, to the extent invoiced,
reimbursement or payment of all reasonable out-of-pocket expenses (including the reasonable legal
fees and expenses of Skadden, Arps, Slate, Meagher & Flom LLP, special counsel to the Agents, and
the reasonable fees and expenses of any local counsel, foreign counsel, appraisers, consultants and
other advisors) required to be reimbursed or paid by any Loan Party hereunder or under any other
Loan Document.

     (n) Personal Property Requirements. The Collateral Agent shall have received:

          (i) subject to the terms of the Intercreditor Agreement, all certificates, agreements or
instruments, if any, representing or evidencing the Securities Collateral accompanied by
instruments of transfer and stock powers undated and endorsed in blank;

          (ii) subject to the terms of the Intercreditor Agreement, the Intercompany Note executed by
and among Canadian Borrower and each of its Subsidiaries, accompanied by instruments of transfer
undated and endorsed in blank;

          (iii) subject to the terms of the Intercreditor Agreement, all other certificates, agreements
(including Control Agreements) or instruments necessary to perfect the Collateral Agent’s security
interest in all “Chattel Paper”, “Instruments”, “Deposit Accounts” and “Investment Property” (as
each such term is defined in the U.S. Security Agreement) of each Loan Party to the extent required
hereby or under the relevant Security Documents;

          (iv) UCC financing statements in appropriate form for filing under the UCC, filings with the
United States Patent and Trademark Office and United States Copyright Office PPSA filings, and such
other documents under applicable Requirements of Law in each jurisdiction as may be necessary or
appropriate or, in the opinion of the Collateral Agent, desirable to perfect the Liens created, or
purported to be created, by the Security Documents;

          (v) certified copies of UCC, United States Patent and Trademark Office and United States
Copyright Office, PPSA, tax and judgment lien searches, bankruptcy and pending lawsuit searches or
equivalent reports or searches (in jurisdictions where such searches are available), each of a
recent date listing all outstanding financing statements, lien notices or comparable documents that
name any Loan Party as debtor and that are filed in those state and county (or other applicable)
jurisdictions in which any property of any Loan Party (other than Inventory in transit) is located
and the state and county (or other applicable) jurisdictions in which any Loan Party is organized
or maintains its principal place of business and such other searches that the Collateral Agent
deems necessary or appropriate, none of which are effective to

	 	 	 
	 
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encumber the Collateral covered or intended to be covered by the Security Documents (other than Permitted Liens);

          (vi) evidence acceptable to the Collateral Agent of payment or arrangements for payment by the
Loan Parties of all applicable recording taxes, fees, charges, costs and expenses required for the
recording of the Security Documents;

          (vii) evidence that all Liens (other than Permitted Liens) affecting the assets of the Loan
Parties have been or will be discharged on or before the Closing Date (or, in the case of financing
statement filings or similar notice of lien filings that do not evidence security interests (other
than security interests that are discharged on or before the Closing Date), that arrangements with
respect to the release or termination thereof satisfactory to the Administrative Agent have been
made);

          (viii) copies of all notices required to be sent and other documents required to be executed
under the Security Documents;

          (ix) all share certificates, duly executed and stamped stock transfer forms and other
documents of title required to be provided under the Security Documents; and

          (x) evidence that the records of each U.K. Guarantor at the United Kingdom Companies House are
accurate, complete and up to date and that the latest relevant accounts have been duly filed.

     (o) Real Property Requirements. The Collateral Agent shall have received:

          (i) a Mortgage encumbering each Mortgaged Property in favor of the Collateral Agent, for the
benefit of the Secured Parties, duly executed and acknowledged by each Loan Party that holds any
direct interest in such Mortgaged Property, and otherwise in form for recording in the recording
office of each applicable political subdivision where each such Mortgaged Property is situated,
together with such certificates, affidavits, questionnaires or returns as shall be required in
connection with the recording or filing thereof to create a lien under applicable Requirements of
Law, and such financing statements and any other instruments necessary to grant a mortgage lien
under the laws of any applicable jurisdiction, all of which shall be in form and substance
reasonably satisfactory to Collateral Agent;

          (ii) with respect to each Mortgaged Property, such consents, approvals, amendments,
supplements, estoppels, tenant subordination agreements or other instruments as necessary to
consummate the Transactions or as shall reasonably be deemed necessary by the Collateral Agent in
order for the owner or holder of the fee or leasehold interest constituting such Mortgaged Property
to grant the Lien contemplated by the Mortgage with respect to such Mortgaged Property;

          (iii) with respect to each Mortgage of property located in the United States, Canada or, to
the extent reasonably requested by the Collateral Agent, any other jurisdictions, (a) a policy of
title insurance (or marked up title insurance commitment having the effect of a policy of title
insurance) insuring the Lien of such Mortgage as a valid, perfected mortgage Lien on the Mortgaged
Property and fixtures described therein having the priority specified in the

	 	 	 
	 
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Intercreditor Agreement in the amount equal to not less than 115% of the fair market value of such Mortgaged
Property and fixtures, which fair market value is set forth on Schedule 4.01(o)(iii), which
policy (or such marked-up commitment) (each, a “Title Policy”) shall (A) be issued by the Title
Company, (B) to the extent necessary, include such reinsurance arrangements (with provisions for
direct access, if necessary) as shall be reasonably acceptable to the Collateral Agent, (C) contain
a “tie-in” or “cluster” endorsement, if available under applicable law (i.e., policies which insure
against losses regardless of location or allocated value of the insured property up to a stated
maximum coverage amount), (D) have been supplemented by such endorsements (or where such
endorsements are not available, opinions of special counsel, architects or other professionals
reasonably acceptable to the Collateral Agent) as shall be reasonably requested by the Collateral
Agent (including endorsements on matters relating to usury, first loss, last dollar, zoning,
contiguity, revolving credit, doing business, non-imputation, public road access, survey, variable
rate, environmental lien, subdivision, mortgage recording tax, separate tax lot, revolving credit,
and so-called comprehensive coverage over covenants and restrictions), and (E) contain no
exceptions to title other than exceptions acceptable to the Collateral Agent, it being acknowledged
that Permitted Liens of the type described in Section 6.02(a), 6.02(b),
6.02(d), 6.02(f) (clause (x) only), 6.02(g), and 6.02(k) shall be
acceptable or (b) in respect of Mortgaged Property situated outside the United States, a title
opinion of Canadian Borrower’s local counsel in form and substance satisfactory to the Collateral
Agent;

          (iv) with respect to each applicable Mortgaged Property, such affidavits, certificates,
information (including financial data) and instruments of indemnification (including a so-called
“gap” indemnification) as shall be required to induce the Title Company to issue the Title
Policy/ies and endorsements contemplated above;

          (v) evidence reasonably acceptable to the Collateral Agent of payment by the applicable
Borrowers of all Title Policy premiums, search and examination charges, escrow charges and related
charges, mortgage recording taxes, fees, charges, costs and expenses required for the recording of
the Mortgages and issuance of the Title Policies referred to above;

          (vi) with respect to each Real Property or Mortgaged Property, copies of all Leases in which
any Loan Party or any Subsidiary holds the lessor’s interest or other agreements relating to
possessory interests, if any, in each case providing for annual rental payments in excess of
$250,000. To the extent any of the foregoing affect any Mortgaged Property, such agreement shall
be subordinate to the Lien of the Mortgage to be recorded against such Mortgaged Property, either
expressly by its terms or pursuant to a subordination, non-disturbance and attornment agreement,
and shall otherwise be acceptable to the Collateral Agent;

          (vii) with respect to each Mortgaged Property, each Company shall have made all notifications,
registrations and filings, to the extent required by, and in accordance with, all Governmental Real
Property Disclosure Requirements applicable to such Mortgaged Property;

          (viii) to the extent requested by the Collateral Agent, Surveys with respect to the Mortgaged
Properties;

          (ix) a completed Federal Emergency Management Agency Standard Flood Hazard Determination with
respect to each Mortgaged Property situated in the United States;

	 	 	 
	 
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          (x) (a) title deeds to each real and leasehold property situated in England and Wales secured
in favor of the Collateral Agent; or (b) a letter (satisfactory to the Collateral Agent) from
solicitors holding those title deeds undertaking to hold them to the order of the Collateral Agent;
or (c) if any document is at the Land Registry, a certified copy of that document and a letter from
the U.K. Guarantors’ solicitors directing the registry to issue the document to the Collateral
Agent or its solicitors; and

          (xi) in relation to property situated in England and Wales, if applicable, satisfactory
priority searches at the Land Registry and Land Charges Searches, giving not less that 25 Business
Days’ priority notice beyond the date of the debenture and evidence that no Lien is registered
against the relevant property (other than Permitted Liens or any Liens that will be released on the
date of first drawdown, such searches to be addressed to or capable of being relied upon by the
Secured Parties).

     (p) Insurance. The Administrative Agent shall have received a copy of, or a
certificate as to coverage under, the property and liability insurance policies required by
Section 5.04 and the applicable provisions of the Security Documents, each of which shall
be endorsed or otherwise amended to include a “standard” lender’s loss payable or mortgagee
endorsement (as applicable) and shall name the Collateral Agent, on behalf of the Secured Parties,
as additional insured, in form and substance satisfactory to the Administrative Agent.

     (q) USA Patriot Act. The Lenders shall have received, sufficiently in advance of the
Closing Date, all documentation and other information that may be required by the Lenders in order
to enable compliance with applicable “know your customer” and anti-money laundering rules and
regulations, including the United States PATRIOT Act (Title III of Pub. L. 107-56 (signed into law
October 26, 2001)) including, without limitation, the information described in Section
11.13.

     (r) Cash Management. The Collateral Agent and the Administrative Agent shall have
reviewed and approved the Companies’ cash management system and shall have received executed
blocked account agreements (or, with respect to countries other than the United States and Canada,
other customary arrangements) from all of the financial institutions where the Loan Parties
maintain bank accounts or securities accounts (except as may otherwise be agreed by the Collateral
Agent) in form and substance satisfactory to Administrative Agent and Collateral Agent.

     (s) Process Agent. The Collateral Agent and the Administrative Agent shall have
received evidence of the acceptance by the Process Agent of its appointment as such by the Loan
Parties.

     (t) Outstanding Indebtedness. The Collateral Agent and the Administrative Agent shall
have received evidence that the amount of funded indebtedness and unfunded commitments under that
certain Credit Agreement, dated as of January 7, 2005, among Novelis Inc., Novelis Corporation,
Novelis Deutschland GmbH, Novelis UK Ltd, Novelis AG, the lenders and issuers party thereto, and
Citicorp North America, Inc., as administrative agent and collateral agent (as amended, restated,
supplemented or otherwise modified), shall not exceed $1,500 million.

	 	 	 
	 
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SECTION 4.02 Conditions to Credit Extensions. The obligation of each Lender to make the initial
Credit Extension and the obligation of any Lenders to make the initial Credit Extension under any
Incremental Term Loan Commitments shall be subject to, and to the satisfaction of, each of the
conditions precedent set forth below.

     (a) Notice. The Administrative Agent shall have received a Borrowing Request as
required by Section 2.03 (or such notice shall have been deemed given in accordance with
Section 2.03).

     (b) No Default. No Default shall exist, or would result from such proposed Credit
Extension or from the application of the proceeds therefrom (subject to Section 4.02(c) and
Section 4.03 in the case of the initial Credit Extension).

     (c) Representations and Warranties. Each of the representations and warranties made
by any Loan Party set forth in ARTICLE III hereof or in any other Loan Document (other than
Hedging Agreements) shall be true and correct in all material respects on and as of the date of
such Credit Extension with the same effect as though made on and as of such date, except to the
extent such representations and warranties expressly relate to an earlier date, in which case such
representation and warranty shall have been true and correct in all material respects as of such
earlier date; provided that in the case of the initial Credit Extension hereunder only, the
representations contained in Sections 3.04 (Financial Statements; Projections),
3.05 (Properties), 3.06 (Intellectual Property), 3.07 (Equity Interests and
Subsidiaries), 3.08 (Litigation; Compliance with Laws) (other than clause (i) thereunder),
3.09 (Agreements), 3.13 (Taxes), 3.14 (No Material Misstatements),
3.15 (Labor Matters), 3.17 (Employee Benefit Plans), 3.18 (Environmental
Matters), 3.19 (Insurance), 3.21 (Acquisition Documents; Material Indebtedness
Documents; Representations and Warranties in Acquisition Agreement), 3.24 (Location of
Material Inventory and Equipment), 3.26 (Senior Notes; Material Indebtedness) (solely with
regard to the first sentence thereof), 3.27 (Centre of Main Interests and Establishments)
and 3.28 (Holding and Dormant Companies) shall only be conditions to the obligation of each
Lender to fund the initial Credit Extension requested to be made by it on the date of the initial
Credit Extensions hereunder to the extent that, as a result of the breach of such representation,
Acquiror (x) had or would have had the right to terminate its obligations under the Acquisition
Agreement on the Acquisition Closing Date (or to not consummate the Hindalco Acquisition on the
Acquisition Closing Date) and (y) Acquiror or any of its affiliates, representatives or advisors
had, as of the Acquisition Closing Date, knowledge of such right to terminate or right to not
consummate the Acquisition.

     (d) No Legal Bar. With respect to each Lender, no order, judgment or decree of any
Governmental Authority shall purport to restrain such Lender from making any Loans to be made by
it. No injunction or other restraining order shall have been issued, shall be pending or noticed
with respect to any action, suit or proceeding seeking to enjoin or otherwise prevent the
consummation of, or to recover any damages or obtain relief as a result of, the transactions
contemplated by this Agreement or the making of Loans hereunder.

     Each of the delivery of a Borrowing Request and the acceptance by any Borrower of the proceeds
of such Credit Extension shall constitute a representation and warranty by each Borrower and each
other Loan Party that on the date of such Credit Extension (both immediately

	 	 	 
	 
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before and after giving effect to such Credit Extension and the application of the proceeds thereof) the conditions
contained in Section 4.02(b) through (d) have been satisfied (which representation
and warranty shall be deemed limited to the knowledge of the Loan Parties in the case of the first
sentence of Section 4.02(d)). Borrowers shall provide such information as the Administrative Agent
may reasonably request to confirm that the conditions in Section 4.02(b) through
(d) have been satisfied.

SECTION 4.03 Certain Collateral Matters. To the extent any Collateral (other than the pledge and
perfection of the Lien of the Collateral Agent in the Equity Interests of Subsidiaries held by the
Loan Parties (to the extent required hereunder) and other assets pursuant to which a lien may be
perfected by the filing of a financing statement under the UCC, the PPSA and other similar filings
in other applicable jurisdictions) is not provided on the Closing Date after use by Holdings and
its Subsidiaries of commercially reasonable efforts to do so, the delivery of such Collateral shall
not constitute a condition precedent to the Closing Date, but shall be required to be delivered
after the Closing Date pursuant to arrangements and timing to be mutually agreed by the Borrowers
and the Administrative Agent.

ARTICLE V.

AFFIRMATIVE COVENANTS

     Each Loan Party warrants, covenants and agrees with each Lender that so long as this Agreement
shall remain in effect and until the Commitments have been terminated and the principal of and
interest on each Loan, all Fees and all other expenses or amounts payable under any Loan Document
shall have been paid in full, unless the Required Lenders shall otherwise consent in writing, each
Loan Party will, and will cause each of its Subsidiaries to:

SECTION 5.01 Financial Statements, Reports, etc. Furnish to the Administrative Agent (and the
Administrative Agent shall make available to the Lenders, on the Platform or otherwise, in
accordance with its customary procedures):

     (a) Annual Reports. As soon as available and in any event within the earlier of (i)
ninety (90) days and (ii) such shorter period as may be required by the Securities and Exchange
Commission, after the end of each fiscal year, beginning with the first fiscal year ending after
the Closing Date, (i) the consolidated balance sheet of Canadian Borrower as of the end of such
fiscal year and related consolidated statements of income, cash flows and stockholders’ equity for
such fiscal year, in comparative form with such financial statements as of the end of, and for, the
preceding fiscal year, and notes thereto, all prepared in accordance with Regulation S-X and
accompanied by an opinion of independent public accountants of recognized national standing
reasonably satisfactory to the Administrative Agent (which opinion shall not be qualified as to
scope or contain any going concern qualification, paragraph of emphasis or explanatory statement),
stating that such financial statements fairly present, in all material respects, the consolidated
financial condition, results of operations and cash flows of Canadian Borrower as of the dates and
for the periods specified in accordance with GAAP, (ii) a narrative report and management’s
discussion and analysis, in a form reasonably satisfactory to the Administrative Agent, of the
financial condition and results of operations of Canadian Borrower for such fiscal year, as
compared to amounts for the previous fiscal year (it being understood that the

	 	 	 
	 
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information required by clauses (i) and (ii) of this Section 5.01(a) may be furnished in the form of a Form 10-K
(so long as the financial statements, narrative report and management’s discussion therein comply
with the requirements set forth above)) and (iii) consolidating balance sheets, statements of
income and cash flows of Canadian Borrower and its Subsidiaries separating out the results by
region;

     (b) Quarterly Reports. As soon as available and in any event within the earlier of
(i) forty-five (45) days and (ii) such shorter period as may be required by the Securities and
Exchange Commission, after the end of each of the first three fiscal quarters of each fiscal year,
beginning with the fiscal quarter ending June 30, 2007, (i) the consolidated balance sheet of
Canadian Borrower as of the end of such fiscal quarter and related consolidated statements of
income and cash flows for such fiscal quarter and for the then elapsed portion of the fiscal year,
in comparative form with the consolidated statements of income and cash flows for the comparable
periods in the previous fiscal year, and notes thereto, all prepared in accordance with Regulation
S-X under the Securities Act and accompanied by a certificate of a Financial Officer stating that
such financial statements fairly present, in all material respects, the consolidated
financial condition, results of operations and cash flows of Canadian Borrower as of the date
and for the periods specified in accordance with GAAP consistently applied, and on a basis
consistent with audited financial statements referred to in clause (a) of this Section, except as
otherwise disclosed therein and subject to the absence of footnote disclosures and to normal
year-end audit adjustments, (ii) a narrative report and management’s discussion and analysis, in a
form reasonably satisfactory to the Administrative Agent, of the financial condition and results of
operations for such fiscal quarter and the then elapsed portion of the fiscal year, as compared to
the comparable periods in the previous fiscal year (it being understood that the information
required by clauses (i) and (ii) of this Section 5.01(b) may be furnished in the form of a
Form 10-Q (so long as the financial statements, management report and management’s discussion
therein comply with the requirements set forth above)) and (iii) consolidating balance sheets,
statements of income and cash flows of Canadian Borrower and its Subsidiaries separating out the
results by region;

     (c) [INTENTIONALLY OMITTED];

     (d) Financial Officer’s Certificate. (i) Concurrently with any delivery of financial
statements under Section 5.01(a) or (b), beginning with the fiscal quarter ending
June 30, 2007, a Compliance Certificate (A) certifying that no Default has occurred or, if such a
Default has occurred, specifying the nature and extent thereof and any corrective action taken or
proposed to be taken with respect thereto, (B) concurrently with any delivery of financial
statements under Section 5.01(a) above (commencing with the financial statements for the
first complete fiscal year of Canadian Borrower beginning after the Closing Date), setting forth
Canadian Borrower’s calculation of Excess Cash Flow and (C) showing a reconciliation of
Consolidated EBITDA to the net income set forth on the statement of income, such reconciliation to
be on a quarterly basis; and (ii) concurrently with any delivery of financial statements under
Section 5.01(a) above, to the extent permitted under applicable accounting guidelines, a
report of the accounting firm opining on or certifying such financial statements stating that in
the course of its regular audit of the financial statements of Canadian Borrower and its
Subsidiaries, such accounting firm obtained no knowledge that any Default has occurred, or if any
Default has occurred, specifying the nature and extent thereof;

	 	 	 
	 
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     (e) Officer’s Certificate Regarding Organizational Chart and Perfection of Collateral.
Concurrently with any delivery of financial statements under Section 5.01(a), a
certificate of a Responsible Officer of Canadian Borrower attaching an accurate organizational
chart (or confirming that there has been no change in organizational structure) and otherwise
setting forth the information required pursuant to the Perfection Certificate Supplement or
confirming that there has been no change in such information since the date of the Perfection
Certificate or latest Perfection Certificate Supplement;

     (f) Public Reports. Promptly after the same become publicly available, copies of all
periodic and other reports, proxy statements and other materials filed by any Loan Party with the
Securities and Exchange Commission, or any Governmental Authority succeeding to any or all of the
functions of said Commission, with any national U.S. or non-U.S. securities regulatory authority or
securities exchange or with the National Association of Securities Dealers, Inc., or distributed to
holders of its publicly held Indebtedness or securities pursuant to the terms of the documentation
governing such Indebtedness or securities (or any trustee, agent or other
representative therefor), as the case may be; provided that documents required to be
delivered pursuant to this clause (f) may be delivered electronically and if so delivered, shall be
deemed to have been delivered on the date (i) on which Canadian Borrower posts such documents, or
provides a link thereto on Canadian Borrower’s website (or other location specified by Canadian
Borrower) on the Internet; or (ii) on which such documents are posted on Canadian Borrower’s behalf
on the Platform; provided that: (i) upon written request by the Administrative Agent,
Canadian Borrower shall deliver paper copies of such documents to the Administrative Agent for
further distribution to each Lender until a written request to cease delivering paper copies is
given by the Administrative Agent and (ii) Canadian Borrower shall notify (which may be by
facsimile or electronic mail) the Administrative Agent of the posting of any such documents and
provide to the Administrative Agent by electronic mail electronic versions (i.e., soft copies) of
such documents; provided, further, that notwithstanding anything contained herein,
in every instance Canadian Borrower shall be required to provide paper copies of the certificates
required by clauses (d) and (e) of this Section 5.01 to the Administrative Agent;

     (g) Management Letters. Promptly after the receipt thereof by any Company, a copy of
any “management letter”, exception report or other similar letter or report received by any such
person from its certified public accountants and the management’s responses thereto;

     (h) Projections. Within sixty (60) days of the end of each fiscal year, a copy of the
annual projections for Canadian Borrower (including balance sheets, statements of income and
sources and uses of cash, for (i) each quarter of such fiscal year prepared in detail and (ii) each
fiscal year thereafter, through and including the fiscal year in which the Final Maturity Date
occurs, prepared in summary form, in each case, of Canadian Borrower on a consolidated basis, with
appropriate presentation and discussion of the principal assumptions upon which such forecasts are
based, accompanied by the statement of a Financial Officer of Canadian Borrower to the effect that
such assumptions are believed to be reasonable;

     (i) Labor Relations. Promptly after becoming aware of the same, written notice of (a)
any labor dispute to which any Loan Party or any of its Subsidiaries is or is expected to become a
party, including any strikes, lockouts or other labor disputes relating to any of such person’s
plants and other facilities, which could reasonably be expected to result in a Material

	 	 	 
	 
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Adverse Effect, (b) any Worker Adjustment and Retraining Notification Act or related liability incurred
with respect to the closing of any plant or other facility of any such person and (c) any material
liability under Requirements of Law similar to the Worker Adjustment and Retraining Notification
Act or otherwise arising out of plant closings;

     (j) Asset Sales. At least ten (10) days prior to an Asset Sale, the Net Cash Proceeds
of which (or the Dollar Equivalent thereof) are anticipated to exceed $20 million written notice
(a) describing such Asset Sale or the nature and material terms and conditions of such transaction
and (b) stating the estimated Net Cash Proceeds anticipated to be received by any Loan Party or any
of its Subsidiaries; and

     (l) Other Information. Promptly, from time to time, such other information regarding
the operations, properties, business affairs and condition (financial or otherwise) of any Company,
or compliance with the terms of any Loan Document, or matters regarding the
Collateral (beyond the requirements contained in Section 9.03) as the Administrative
Agent or any Lender may reasonably request.

SECTION 5.02 Litigation and Other Notices. Furnish to the Administrative Agent written notice of
the following promptly (and, in any event, within three (3) Business Days after acquiring knowledge
thereof):

     (a) any Default, specifying the nature and extent thereof and the corrective action (if any)
taken or proposed to be taken with respect thereto;

     (b) the filing or commencement of, or any written notice of intention of any person to file or
commence, any action, suit, litigation or proceeding, whether at law or in equity by or before any
Governmental Authority, (i) against any Borrower or other Company that in the reasonable judgment
of the Borrowers could reasonably be expected to result in a Material Adverse Effect if adversely
determined or (ii) with respect to any Loan Document;

     (c) any development that has resulted in, or could reasonably be expected to result in, a
Material Adverse Effect;

     (d) the occurrence of a Casualty Event involving a Dollar Equivalent amount in excess of $20
million; and

     (e) (i) the incurrence of any Lien (other than Permitted Liens) on the Collateral, or claim
asserted against any of the Collateral or (ii) the occurrence of any other event which could
reasonably be expected to affect the value of the Collateral, in each case which could reasonably
be expected to be material with regard to (x) the Revolving Credit Priority Collateral, taken as a
whole, or (y) the Term Loan Priority Collateral, taken as a whole.

SECTION 5.03 Existence; Businesses and Properties.

     (a) Do or cause to be done all things reasonably necessary to preserve, renew and keep in full
force and effect its legal existence, rights and franchises necessary or desirable in the normal
conduct of its business, except (i) other than with respect to a Borrower’s existence, to

	 	 	 
	 
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the extent the failure to do so would not reasonably be expected to have a Material Adverse Effect or
(ii) pursuant to a transaction permitted by Section 6.05 or Section 6.06.

     (b) Do or cause to be done all things necessary to obtain, maintain, preserve, renew, extend
and keep in full force and effect the rights, licenses, permits, privileges, franchises, approvals,
authorizations, patents, copyrights, trademarks, service marks and trade names used, useful, or
necessary to the conduct of its business, except where the failure to do so could not reasonably be
expected to result in a Material Adverse Effect; do or cause to be done all things necessary to
preserve its business and the goodwill and business of the customers, advertisers, suppliers and
others having business relations with each Loan Party or any of its Subsidiaries, except where the
failure to do so could not reasonably be expected to result in a Material Adverse Effect; comply
with all applicable Requirements of Law (including any and all zoning,
building, Environmental Law, ordinance, code or approval or any building permits or any
restrictions of record or agreements affecting the Real Property), contractual obligations, and
decrees and orders of any Governmental Authority, whether now in effect or hereafter enacted,
except where the failure to comply, individually or in the aggregate, could not reasonably be
expected to result in a Material Adverse Effect; and at all times maintain, preserve and protect
all of its property and keep such property in good repair, working order and condition (other than
wear and tear occurring in the ordinary course of business) and from time to time make, or cause to
be made, all needful and proper repairs, renewals, additions, improvements and replacements thereto
necessary in order that the business carried on in connection therewith may be properly conducted
at all times, except in each case where the failure to do so could not reasonably be expected to
result in a Material Adverse Effect.

SECTION 5.04 Insurance.

     (a) Generally. Keep its insurable property adequately insured at all times by
financially sound and reputable insurers; maintain such other insurance, to such extent and against
such risks as is customary with companies in the same or similar businesses operating in the same
or similar locations, including insurance with respect to Mortgaged Properties and other properties
material to the business of the Companies against such casualties and contingencies and of such
types and in such amounts with such deductibles as is customary in the case of similar businesses
operating in the same or similar locations, including (i) physical hazard insurance on an “all
risk” basis (subject to usual and customary exclusions), (ii) commercial general liability against
claims for bodily injury, death or property damage covering any and all insurable claims, (iii)
explosion insurance in respect of any boilers, machinery or similar apparatus constituting
Collateral, (iv) business interruption insurance and flood insurance, and (v) worker’s compensation
insurance and such other insurance as may be required by any Requirement of Law; provided
that with respect to physical hazard insurance, neither the Collateral Agent nor the applicable
Company shall agree to the adjustment of any claim thereunder with respect to Term Loan Priority
Collateral involving an amount in excess of $30 million thereunder without the consent of the other
(such consent not to be unreasonably withheld or delayed); provided, further, that
no consent of any Company shall be required during an Event of Default.

     (b) Requirements of Insurance. All such property and liability insurance maintained
by the Loan Parties shall (i) provide that no cancellation, material reduction in amount or

	 	 	 
	 
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material change in coverage thereof shall be effective until at least thirty (30) days after
receipt by the Collateral Agent of written notice thereof, (ii) name the Collateral Agent as
mortgagee or loss payee, as applicable (in the case of property insurance) or additional insured on
behalf of the Secured Parties (in the case of liability insurance), as applicable, and (iii) if
reasonably requested by the Collateral Agent, include a breach of warranty clause.

     (c) Flood Insurance. Except to the extent already obtained in accordance with clause
(iv) of Section 5.04(a), with respect to each Mortgaged Property, obtain flood insurance in
such total amount as the Administrative Agent may from time to time require, if at any time the
area in which any improvements located on any Mortgaged Property is designated a “flood hazard
area” in any Flood Insurance Rate Map published by the Federal Emergency Management Agency (or
any successor agency), and such insurance is required to be obtained pursuant to the requirements
of the National Flood Insurance Act of 1968, as amended from time to time, or the Flood Disaster
Protection Act of 1973, as amended from time to time.

     (d) Broker’s Report. As soon as practicable and in any event within ninety (90) days
after the end of each fiscal year, deliver to the Administrative Agent and the Collateral Agent (i)
a report of a reputable insurance broker with respect to the insurance maintained pursuant to
clauses (i)-(iv) of Section 5.04(a) in form and substance satisfactory to the
Administrative Agent and the Collateral Agent (together with such additional reports as the
Administrative Agent or the Collateral Agent may reasonably request), and (ii) such broker’s
statement that all premiums then due and payable with respect to the coverage maintained pursuant
to clauses (i)-(iv) of Section 5.04(a) have been paid and confirming, with respect to any
property, physical hazard or liability insurance maintained by a Loan Party, that the Collateral
Agent has been named as loss payee or additional insured, as applicable.

     (e) Mortgaged Properties. Each Loan Party shall comply in all material respects with
all Insurance Requirements in respect of each Mortgaged Property; provided,
however, that each Loan Party may, at its own expense and after written notice to the
Administrative Agent, (i) contest the applicability or enforceability of any such Insurance
Requirements by appropriate legal proceedings, the prosecution of which does not constitute a basis
for cancellation or revocation of any insurance coverage required under this Section 5.04
or (ii) cause the Insurance Policy containing any such Insurance Requirement to be replaced by a
new policy complying with the provisions of this Section 5.04.

SECTION 5.05 Payment of Taxes.

     (a) Payment of Taxes. Pay and discharge promptly when due all Taxes, assessments and
governmental charges or levies imposed upon it or upon its income or profits or in respect of its
property, before the same shall become delinquent or in default, as well as all lawful claims for
labor, services, materials and supplies or otherwise that, if unpaid, might give rise to a Lien
other than a Permitted Lien upon such properties or any part thereof; provided that such
payment and discharge shall not be required with respect to any such Tax, assessment, charge, levy
or claim so long as (x)(i) the validity or amount thereof shall be contested in good faith by
appropriate proceedings timely instituted and diligently conducted and the applicable Company shall
have set aside on its books adequate reserves or other appropriate provisions with respect thereto
in accordance with GAAP (or other applicable accounting rules), and (ii) such contest

	 	 	 
	 
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operates to suspend collection of the contested obligation, Tax, assessment or charge and
enforcement of a Lien other than a Permitted Lien, and (y) the failure to pay could not reasonably
be expected to result in a Material Adverse Effect.

     (b) Filing of Returns. Timely file all material Tax Returns required to be filed by
it.

SECTION 5.06 Employee Benefits.

     (a) Comply with the applicable provisions of ERISA and the Code and any Requirements of Law
applicable to any Foreign Plan or Compensation Plan, except where any non-compliance could not
reasonably be expected to result in a Material Adverse Effect.

     (b) Furnish to the Administrative Agent (x) as soon as possible after, and in any event within
five (5) Business Days after any Responsible Officer of any Company or any ERISA Affiliates of any
Company knows that, any ERISA Event has occurred, a statement of a Financial Officer of
Administrative Borrower setting forth details as to such ERISA Event and the action, if any, that
the Companies propose to take with respect thereto, and (y) upon request by the Administrative
Agent, copies of such other documents or governmental reports or filings relating to any Plan (or
Foreign Plan, or other employee benefit plan sponsored or contributed to by any Company) as the
Administrative Agent shall reasonably request.

     (c) (i) Ensure that the Novelis U.K. Pension Plan is funded in accordance with the agreed
schedule of contributions dated May 16, 2007 and that no action or omission is taken by any Company
in relation to such a pension scheme which has or is reasonably likely to have a Material Adverse
Effect; (ii) except for any existing defined benefit pension schemes as specified on Schedule
3.17 ensure that no Company is or has been at any time an employer (for the purposes of
Sections 38 to 51 of the Pensions Act 2004) of an occupational pension scheme which is not a money
purchase scheme (both terms as defined in the Pension Schemes Act 1993) or “connected” with or an
“associate” of (as those terms are defined in Sections 39 or 43 of the Pensions Act 2004) such an
employer; (iii) deliver to the Administrative Agent upon request as those reports are prepared in
order to comply with the then current statutory or auditing requirements (as applicable either to
the trustees of any relevant schemes), actuarial reports in relation to all pension schemes
mentioned in clause (i) above; (iv) promptly notify the Administrative Agent of any material change
in the agreed rate of contributions to any pension schemes mentioned in clause (i) above; (v)
promptly notify the Administrative Agent of any investigation or proposed investigation by the
Pensions Regulator which may lead to the issue of a Financial Support Direction or a Contribution
Notice to any member of the Group; and (vi) promptly notify the Administrative Agent if it receives
a Financial Support Direction or a Contribution Notice from the Pensions Regulator.

     (d) Ensure that all Foreign Plans (except the Novelis U.K. Pension Plan) and Compensation
Plans that are required to be funded are funded and contributed to in accordance with their terms
to the extent of all Requirements of Law.

SECTION 5.07 Maintaining Records; Access to Properties and Inspections; Annual
Meetings. Keep proper books of record and account in which full, true and correct entries in
conformity in all material respects with GAAP (or other applicable accounting

	 	 	 
	 

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standards) and all Requirements of Law of all financial transactions and the assets and
business of each Company and its Subsidiaries are made of all dealings and transactions in relation
to its business and activities, including, without limitation, proper records of intercompany
transactions) with full, true and correct entries reflecting all payments received and paid
(including, without limitation, funds received by or for the account of any Loan Party from deposit
accounts of the other Companies). Each Company will permit any representatives designated by the
Administrative Agent (who may be accompanied by any Agent or Lender) to visit and inspect the
financial records and the property of such Company (at reasonable intervals, during normal business
hours and within five Business Days after written notification of the same to Administrative
Borrower, except that, during the continuance of an Event of Default, none of such restrictions
shall be applicable) and to make extracts from and copies of such financial records, and permit any
representatives designated by the Administrative Agent (who may be accompanied by any Agent or
Lender) to discuss the affairs, finances, accounts and condition of any Company with the officers
and employees thereof and advisors therefor (including independent accountants).

SECTION
5.08 Use of Proceeds. Use the proceeds of the Loans only for the purposes set
forth in Section 3.12.

SECTION 5.09 Compliance with Environmental Laws; Environmental
Reports.

     (a) Comply, and cause all lessees and other persons occupying Real Property owned, operated or
leased by any Company to comply, in all material respects with all Environmental Laws and
Environmental Permits applicable to its operations and Real Property; obtain and renew all material
Environmental Permits applicable to its operations and Real Property; and conduct all Responses
required by, and in accordance with, Environmental Laws, in each case, to the extent that the
failure to do so could reasonably be expected to have a Material Adverse Effect; provided
that no Company shall be required to undertake any Response to the extent that its obligation to do
so is being contested in good faith and by proper proceedings and appropriate reserves are being
maintained with respect to such circumstances in accordance with GAAP or other applicable
accounting standards.

     (b) If a Default caused by reason of a breach of Section 3.18 or Section
5.09(a) shall have occurred and be continuing for more than twenty (20) Business Days without
the Companies commencing activities reasonably likely to cure such Default in accordance with
Environmental Laws, at the written request of the Administrative Agent or the Required Lenders
through the Administrative Agent, provide to the Lenders as soon as practicable after such request,
at the expense of Borrowers, an environmental assessment report regarding the matters which are the
subject of such Default, including, where appropriate, soil and/or groundwater sampling, prepared
by an environmental consulting firm and, in form and substance, reasonably acceptable to the
Administrative Agent and indicating the presence or absence of Hazardous Materials and the
estimated cost of any compliance or Response to address them.

SECTION
5.10 Interest Rate Protection. From and after the thirtieth (30th)
day after the Closing Date and for a minimum of four years thereafter maintain fixed rate
Indebtedness, or Hedging Agreements with terms and conditions acceptable to the Administrative
Agent, that

	 	 	 
	 

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together result in at least 45% of the aggregate principal amount of Holdings’s
Consolidated Indebtedness being effectively subject to a fixed or maximum interest rate.

SECTION
5.11 Additional Collateral; Additional Guarantors.

     (a) Subject to the terms of the Intercreditor Agreement and this Section 5.11, with
respect to any property acquired after the Closing Date by any Loan Party that is intended to be
subject to the Lien created by any of the Security Documents but is not so subject, promptly (and
in any event within thirty (30) days after the acquisition thereof) (i) execute and deliver to the
Administrative Agent and the Collateral Agent such amendments or supplements to the relevant
Security Documents or such other documents as the Administrative Agent or the Collateral Agent
shall deem necessary or advisable to grant to the Collateral Agent, for its benefit and for the
benefit of the other Secured Parties, a First Priority Lien on such property subject to no Liens
other than Permitted Liens, and (ii) take all actions necessary to cause such Lien to be duly
perfected to the extent required by such Security Document in accordance with all applicable
Requirements of Law, including the filing of financing statements (or other applicable filings) in
such jurisdictions as may be reasonably requested by the Administrative Agent. Borrowers shall
otherwise take such actions and execute and/or deliver to the Collateral Agent such documents as
the Administrative Agent or the Collateral Agent shall reasonably require to confirm the validity,
perfection and priority of the Lien of the Security Documents against such after-acquired
properties.

     (b) With respect to any person that becomes a Subsidiary after the Closing Date (other than
an Excluded Collateral Subsidiary), or any Subsidiary that was an Excluded Collateral Subsidiary
but, as of the end of the most recently ended fiscal quarter, has ceased to be an Excluded
Collateral Subsidiary or is required to become a Loan Party by operation of the provisions of
Section 5.11(d), promptly (and in any event within thirty (30) days after such person
becomes a Subsidiary or ceases to be an Excluded Collateral Subsidiary or is required to become a
Loan Party by operation of the provisions of Section 5.11(d)) (i) pledge and deliver to the
Collateral Agent the certificates, if any, representing all of the Equity Interests of such
Subsidiary owned by a Loan Party, together with undated stock powers or other appropriate
instruments of transfer executed and delivered in blank by a duly authorized officer of the
holder(s) of such Equity Interests, and all intercompany notes owing from such Subsidiary to any
Loan Party together with instruments of transfer executed and delivered in blank by a duly
authorized officer of such Loan Party and (ii) cause any such Subsidiary that is a Wholly Owned
Subsidiary, in each case to the extent not prohibited by applicable Requirements of Law, (A) to
execute a Joinder Agreement or such comparable documentation to become a Subsidiary Guarantor and
joinder agreements to the applicable Security Documents (in each case, substantially in the form
annexed thereto or in such other form as may be reasonably satisfactory to the Administrative
Agent) or, in the case of a Foreign Subsidiary, execute such other Security Documents (or joinder
agreements) to the extent possible under and compatible with the laws of such Foreign Subsidiary’s
jurisdiction in form and substance reasonably satisfactory to the Administrative Agent, and (B) to
take all actions necessary or advisable in the opinion of the Administrative Agent or the
Collateral Agent to cause the Liens created by the applicable Security Documents to be duly
perfected to the extent required by such agreement in accordance with all applicable Requirements
of Law, including the filing of financing statements (or other applicable filings) in such
jurisdictions as may be reasonably requested by the Administrative

	 	 	 
	 

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Agent or the Collateral Agent. Notwithstanding the foregoing, (1) clause (i) of this paragraph (b) shall not apply to the Equity
Interests of (x) any Company listed on Schedule 5.11(b) to the extent any applicable
Requirement of Law continues to prohibit the pledging of its Equity Interests to secure the Secured
Obligations and (y) any Joint Venture Subsidiary, to the extent the terms of any applicable joint
venture, stockholders’, partnership, limited liability company or similar agreement prohibits or
conditions the pledging of its Equity Interests to secure the Secured Obligations and (2) clause
(ii) of this paragraph (b) shall not apply to any Company listed on Schedule 5.11(b) to the
extent any applicable Requirement of Law prohibits it from becoming a Loan Party.

     (c) Subject to the terms of the Intercreditor Agreement, promptly grant to the Collateral
Agent, within sixty (60) days of the acquisition thereof, a security interest in and Mortgage on
(i) each Real Property owned in fee by such Loan Party as is acquired by such Loan Party after the
Closing Date and that, together with any improvements thereon, individually has a fair market value
the Dollar Equivalent of which is at least $5 million, and (ii) unless the Collateral Agent
otherwise consents, and subject to obtaining any consent required from the applicable landlord and
any applicable mortgagee (each of which the Loan Parties agree to use commercially reasonable
efforts to obtain), each leased Real Property of such Loan Party which lease individually has a
fair market value the Dollar Equivalent of which is at least $5 million, in each case, as
additional security for the Secured Obligations (unless the subject property is already mortgaged
to a third party to the extent permitted by Section 6.02). Subject to the terms of the
Intercreditor Agreement, such Mortgages shall be granted pursuant to documentation reasonably
satisfactory in form and substance to the Administrative Agent and the Collateral Agent and shall
constitute valid, perfected and enforceable First Priority Liens subject only to Permitted Liens.
Subject to the terms of the Intercreditor Agreement, the Mortgages or instruments related thereto
shall be duly recorded or filed in such manner and in such places as are required by law to
establish, perfect, preserve and protect the First Priority Liens in favor of the Collateral Agent
required to be granted pursuant to the Mortgages and all taxes, fees and other charges payable in
connection therewith shall be paid in full. Such Loan Party shall otherwise take such actions and
execute and/or deliver to the Collateral Agent such documents as the Administrative Agent or the
Collateral Agent shall reasonably require to confirm the validity,
perfection and priority of the Lien of any existing Mortgage or new Mortgage against such
after-acquired Real Property (including a Title Policy (or title opinion satisfactory to the
Collateral Agent), a Survey (if applicable in the respective jurisdiction), and a local counsel
opinion (in form and substance reasonably satisfactory to the Administrative Agent and the
Collateral Agent) in respect of such Mortgage). For purposes of this Section 5.11(c) Real
Property owned by a Company that becomes a Loan Party following the Closing Date in accordance with
the terms of this Agreement shall be deemed to have been acquired on the later of (x) the date of
acquisition of such Real Property and (y) the date such Company becomes a Loan Party.

     (d) If, at any time and from time to time after the Closing Date, Subsidiaries that are not
Loan Parties because they are Excluded Collateral Subsidiaries comprise in the aggregate more than
1% of the consolidated total assets of Canadian Borrower and its Subsidiaries as of the end of the
most recently ended fiscal quarter or more than 1% of Consolidated EBITDA of Canadian Borrower and
its Subsidiaries as of the end of the most recently ended fiscal quarter, then the Loan Parties
shall, not later than 45 days after the date by which financial statements for such fiscal quarter
are required to be delivered pursuant to this Agreement, cause one or more of

	 	 	 
	 

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such Subsidiaries to become Loan Parties (notwithstanding that such Subsidiaries are, individually, Excluded Collateral
Subsidiaries) such that the foregoing condition ceases to be true.

SECTION
5.12 Security Interests; Further Assurances. Subject to the terms of the
Intercreditor Agreement, promptly, upon the reasonable request of the Administrative Agent or the
Collateral Agent, at Borrowers’ expense, execute, acknowledge and deliver, or cause the execution,
acknowledgment and delivery of, and thereafter register, file or record, or cause to be registered,
filed or recorded, in an appropriate governmental office, any document or instrument supplemental
to or confirmatory of the Security Documents or otherwise deemed by the Administrative Agent or the
Collateral Agent reasonably necessary or desirable for the continued validity, perfection and
priority of the Liens on the Collateral covered thereby subject to no other Liens except Permitted
Liens, or use commercially reasonable efforts to obtain any consents or waivers as may be
reasonably required in connection therewith. Deliver or cause to be delivered (using commercially
reasonable efforts with respect to delivery of items from Persons who are not in the control of any
Loan Party) to the Administrative Agent and the Collateral Agent from time to time such other
documentation, consents, authorizations, approvals and orders in form and substance reasonably
satisfactory to the Administrative Agent and the Collateral Agent as the Administrative Agent and
the Collateral Agent shall reasonably deem necessary to perfect or maintain the Liens on the
Collateral pursuant to the Security Documents. Upon the exercise by the Administrative Agent, the
Collateral Agent or any Lender of any power, right, privilege or remedy pursuant to any Loan
Document that requires any consent, approval, registration, qualification or authorization of any
Governmental Authority, execute and deliver all applications, certifications, instruments and other
documents and papers that the Administrative Agent, the Collateral Agent or such Lender may
reasonably require in connection therewith. If the Administrative Agent, the Collateral Agent or
the Required Lenders determine that they are required by a Requirement of Law to have appraisals
prepared in respect of the Real Property of any Loan Party constituting Collateral, Borrowers shall
provide to the Administrative Agent appraisals that satisfy the applicable requirements of the Real
Estate Appraisal Reform Amendments of FIRREA (or other
applicable requirements) and are otherwise in form satisfactory to the Administrative Agent
and the Collateral Agent.

SECTION
5.13 Information Regarding Collateral. Not effect any change (i) in any Loan
Party’s legal name or in any trade name used to identify it in the conduct of its business or in
the ownership of its properties, (ii) in the location of any Loan Party’s chief executive office,
its principal place of business, any office in which it maintains books or records relating to
Collateral owned by it or any office or facility at which any material Term Loan Priority
Collateral owned by it is located (including the establishment of any such new office or facility)
other than changes in location to a property identified on Schedule 3.24, another property
location previously identified on a Perfection Certificate Supplement or otherwise by notice to the
Collateral Agent, as to which the steps required by clause (B) below have been completed or to a
Mortgaged Property or a leased property subject to a Landlord Access Agreement, (iii) in any Loan
Party’s identity or organizational structure, (iv) in any Loan Party’s Federal Taxpayer
Identification Number or organizational identification number, if any, or (v) in any Loan Party’s
jurisdiction of organization (in each case, including by merging with or into any other entity,
reorganizing, dissolving, liquidating, reorganizing or organizing in any other jurisdiction), until
(A) it shall have given the Collateral Agent and the Administrative Agent not less than ten (10)

	 	 	 
	 

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Business Days’ prior written notice (in the form of an Officers’ Certificate), or such lesser
notice period agreed to by the Collateral Agent, of its intention so to do, clearly describing such
change and providing such other information in connection therewith as the Collateral Agent or the
Administrative Agent may reasonably request and (B) it shall have taken all action reasonably
satisfactory to the Collateral Agent to maintain the perfection and priority of the security
interest of the Collateral Agent for the benefit of the Secured Parties in the Collateral, if
applicable. Each Loan Party agrees to promptly provide the Collateral Agent with certified
Organizational Documents reflecting any of the changes described in the preceding sentence. For
the purposes of the Regulation, (i) no U.K. Guarantor shall change its centre of main interest (as
that term is used in Article 3(1) of the Regulation) from England and Wales, (ii) nor shall any
Irish Guarantor change its centre of main interest from Ireland, nor shall any Irish Guarantor have
an “establishment” (as that term is used in Article 2(h) of the Regulation) in any other
jurisdiction, (iii) nor shall nor shall any Swiss Guarantor change its centre of main interest from
Switzerland, nor shall any Swiss Guarantor have an “establishment” in any other jurisdiction, (iv)
nor shall German Seller change its centre of main interest from Germany.

SECTION
5.14 Affirmative Covenants with Respect to Leases. With respect to each Lease
to which a Loan Party is party as landlord or lessor, the respective Loan Party shall perform all
the obligations imposed upon the landlord under such Lease and enforce all of the tenant’s
obligations thereunder, except where the failure to so perform or enforce could not reasonably be
expected to result in a Property Material Adverse Effect.

SECTION
5.15 Secured Obligations. Timely pay and perform all of its Secured
Obligations.

SECTION
5.16 Post-Closing Covenants. Execute and deliver the documents and complete
the tasks and take the other actions set forth on Schedule 5.16, in each case within the
time limits specified on such Schedule.

ARTICLE
VI.

NEGATIVE
COVENANTS

     Each Loan Party warrants, covenants and agrees with each Lender that, so long as this
Agreement shall remain in effect and until the Commitments have been terminated and the principal
of and interest on each Loan, all Fees and all other expenses or amounts payable under any Loan
Document have been paid in full, unless the Required Lenders (and such other Lenders whose consent
may be required under Section 11.02) shall otherwise consent in writing, no Loan Party
will, nor will they cause or permit any Subsidiaries to:

SECTION
6.01 Indebtedness. Incur, create, assume or permit to exist, directly or
indirectly, any Indebtedness, except

     (a) Indebtedness incurred under this Agreement and the other Loan Documents;

     (b) (i) Indebtedness outstanding on the Closing Date and listed on Schedule 6.01(b),
and Permitted Refinancings thereof, (ii) Indebtedness of Loan Parties under the Revolving Credit
Loan Documents and Permitted Revolving Credit Facility Refinancings thereof in an

	 	 	 
	 

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aggregate principal amount at any time outstanding not to exceed the Maximum Revolving Credit Facility
Amount, (iii) Indebtedness of Loan Parties and other persons referenced on Schedule
6.01(b) under the Senior Note Documents and Indebtedness under Permitted Refinancings thereof,
and (iv) the Subordinated Debt Loan and Permitted Refinancings thereof;

     (c) Indebtedness of any Company under Hedging Agreements (including Contingent Obligations
with respect thereto); provided that if such Hedging Obligations relate to interest rates,
(i) such Hedging Agreements relate to payment obligations on Indebtedness otherwise permitted to
be incurred by the Loan Documents and (ii) the notional principal amount of such Hedging
Agreements at the time incurred does not exceed the principal amount of the Indebtedness to which
such Hedging Agreements relate;

     (d) Indebtedness permitted by Section 6.04(i);

     (e) Indebtedness of any Securitization Subsidiary under any Securitization Facility (i) that
is without recourse to any Company (other than such Securitization Subsidiary) or any of their
respective assets (other than pursuant to representations, warranties, covenants and indemnities
customary for such transactions), (ii) the payment of principal and interest in respect of which
is not guaranteed by any Company, (iii) in respect of which the governing documentation is in form
and substance reasonably satisfactory to the Administrative Agent, and (iv) that is on customary
terms and conditions; provided that the aggregate outstanding principal amount of the Indebtedness of all Securitization Subsidiaries under all
Securitization Facilities at any time outstanding shall not exceed $300 million less the
aggregate amount of Indebtedness then outstanding under Section 6.01(m) less the
aggregate book value at the time of determination of the then outstanding Accounts subject to a
Permitted Factoring Facility at such time;

     (f) Indebtedness in respect of Purchase Money Obligations and Capital Lease Obligations, and
Permitted Refinancings thereof (other than refinancings funded with intercompany advances), in an
aggregate amount not to exceed $200 million at any time outstanding;

     (g) Sale and Leaseback Transactions permitted under Section 6.03;

     (h) Indebtedness in respect of bid, performance or surety bonds, workers’ compensation
claims, self-insurance obligations, financing of insurance premiums, and bankers acceptances
issued for the account of any Company, in each case, incurred in the ordinary course of business
(including guarantees or obligations of any Company with respect to letters of credit supporting
such bid, performance or surety bonds, workers’ compensation claims, self-insurance obligations
and bankers acceptances) (in each case other than Indebtedness for borrowed money);

     (i) Contingent Obligations (i) of any Loan Party in respect of Indebtedness otherwise
permitted to be incurred by such Loan Party and relating to Indebtedness of a Loan Party under
Section 6.01(f), (g), (h), (j), (l), (n) and
(r), (ii) of any Loan Party in respect of Indebtedness of Subsidiaries in an aggregate
amount not exceeding $75 million at any one time

	 	 	 
	 

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outstanding less all amounts paid with
regard to Contingent Obligations permitted pursuant to Section 6.04(a), and (iii) of any
Company that is not a Loan Party in respect of Indebtedness otherwise permitted to be incurred by
such Company under this Section 6.01;

     (j) Indebtedness arising from the honoring by a bank or other financial institution of a
check, draft or similar instrument inadvertently (except in the case of daylight overdrafts) drawn
against insufficient funds in the ordinary course of business; provided that such
Indebtedness is extinguished within five (5) Business Days of incurrence;

     (k) Indebtedness arising in connection with endorsement of instruments for deposit in the
ordinary course of business;

     (l) Unsecured Indebtedness not otherwise permitted under this Section 6.01 in an
aggregate principal amount not to exceed $200 million at any time outstanding; provided
that not more than an aggregate amount of $100 million of such Indebtedness at any time
outstanding shall have a maturity or provide for scheduled amortization of principal prior to the
180th day following the Final Maturity Date;

     (m) Indebtedness consisting of working capital facilities, lines of credit or cash management
arrangements for Excluded Subsidiaries and Contingent Obligations of Excluded Subsidiaries in
respect thereof; provided that (i) the aggregate principal amount of such Indebtedness
incurred by NKL after the Closing Date shall not exceed $100 million at any time outstanding and
(ii) the aggregate principal amount of such Indebtedness incurred by all other
Excluded Subsidiaries after the Closing Date shall not exceed an aggregate of $100 million at
any time outstanding;

     (n) Indebtedness in respect of indemnification obligations or obligations in respect of
purchase price adjustments or similar obligations incurred or assumed by the Loan Parties and
their Subsidiaries in connection with an Asset Sale or sale of Equity Interests otherwise
permitted under this Agreement;

     (o) unsecured guaranties in the ordinary course of business of any person of the obligations
of suppliers, customers or licensees;

     (p) Indebtedness of NKL arising under letters of credit issued in the ordinary course of
business;

     (q) (i) Indebtedness of any person existing at the time such person is acquired in connection
with a Permitted Acquisition or any other Investment permitted under Section 6.04;
provided that such Indebtedness is not incurred in connection with or in contemplation of
such Permitted Acquisition or other Investment and is not secured by Accounts or Inventory of any
Company organized in a Principal Jurisdiction or the proceeds thereof, and at the time of such
Permitted Acquisition or other Investment, no Event of Default shall have occurred and be
continuing, and (ii) Permitted Refinancings of such Indebtedness, in an aggregate amount, for all
such Indebtedness permitted under this clause (q), not to exceed $50 million at any time
outstanding;

	 	 	 
	 

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     (r) Indebtedness in respect of treasury, depositary and cash management services or automated
clearinghouse transfer of funds (including the European Cash Pooling Arrangements and other pooled
account arrangements and netting arrangements) in the ordinary course of business, in each case,
arising under the terms of customary agreements with any bank at which such Subsidiary maintains
an overdraft, pooled account or other similar facility or arrangement; and

     (s) Permitted Holdings Indebtedness.

SECTION
6.02 Liens. Create, incur, assume or permit to exist, directly or indirectly,
any Lien on any property now owned or hereafter acquired by it or on any income or revenues or
rights in respect of any thereof, except the following (collectively,
the “Permitted Liens”):

     (a) (i) inchoate Liens for taxes, assessments or governmental charges or levies not yet due
and payable or delinquent and (ii) Liens for taxes, assessments or governmental charges or levies,
which are due and payable and are being contested in good faith by appropriate proceedings
diligently conducted and for which adequate reserves have been provided on the books of the
appropriate Company in accordance with GAAP;

     (b) Liens in respect of property of any Company imposed by Requirements of Law, which were
incurred in the ordinary course of business and do not secure Indebtedness for borrowed money,
such as carriers’, warehousemen’s, materialmen’s, landlords’, workmen’s,
suppliers’, repairmen’s and mechanics’ Liens and other similar Liens arising in the ordinary
course of business, and (i) which do not in the aggregate materially detract from the value of the
property of the Companies, taken as a whole, and do not materially impair the use thereof in the
operation of the business of the Companies, taken as a whole, and (ii) which, if they secure
obligations that are then due and unpaid for more than 30 days, are being contested in good faith
by appropriate proceedings diligently conducted and for which adequate reserves have been provided
on the books of the appropriate Company in accordance with GAAP;

     (c) any Lien in existence on the Closing Date and set forth on Schedule 6.02(c) that
does not attach to the Accounts and Inventory of any Borrower and any Lien granted as a
replacement, renewal or substitute therefor; provided that any such replacement, renewal
or substitute Lien (i) does not secure an aggregate amount of Indebtedness, if any, greater than
that secured on the Closing Date (including undrawn commitments thereunder in effect on the
Closing Date, accrued and unpaid interest thereon and fees and premiums payable in connection with
a Permitted Refinancing of the Indebtedness secured by such Lien) and (ii) does not encumber any
property other than the property subject thereto on the Closing Date
(any such Lien, an “Existing
Lien”);

     (d) easements, rights-of-way, restrictions (including zoning restrictions), reservations
(including pursuant to any original grant of any Real Property from the applicable Governmental
Authority), covenants, licenses, encroachments, protrusions and other similar charges or
encumbrances, and minor title deficiencies or irregularities on or with respect to any Real
Property, in each case whether now or hereafter in existence, not (i) securing Indebtedness for
borrowed money or (ii) individually or in the aggregate materially interfering with the ordinary
conduct of the business of the Companies at such Real Property;

	 	 	 
	 

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     (e) Liens arising out of judgments, attachments or awards not resulting in an Event of
Default that are being contested in good faith by appropriate proceedings diligently conducted and
for which adequate reserves have been provided on the books of the appropriate Company in
accordance with GAAP;

     (f) Liens (other than any Lien imposed by ERISA) (x) imposed by Requirements of Law or
deposits made in connection therewith in the ordinary course of business in connection with
workers’ compensation, unemployment insurance and other types of social security legislation, (y)
incurred in the ordinary course of business to secure the performance of tenders, statutory
obligations (other than excise taxes), surety, stay, customs and appeal bonds, statutory bonds,
bids, leases, government contracts, trade contracts, performance and return of money bonds and
other similar obligations (exclusive of obligations for the payment of borrowed money) or (z)
arising by virtue of deposits made in the ordinary course of business to secure liability for
premiums to insurance carriers; provided that (i) with respect to clauses (x), (y) and (z)
of this paragraph (f), such Liens are for amounts not yet due and payable or delinquent or, to the
extent such amounts are so due and payable, such amounts are being contested in good faith by
appropriate proceedings diligently conducted and for which adequate reserves have been established
on the books of the appropriate Company in accordance with GAAP, and (ii) to the extent such Liens
are not imposed by Requirements of Law, such Liens shall in no event encumber any property other
than cash and Cash Equivalents and, with respect to clause (y), property relating to the
performance of obligations secured by such bonds or instruments;

     (g) Leases, subleases or licenses of the properties of any Company granted to other persons
which do not, individually or in the aggregate, interfere in any material respect with the
ordinary conduct of the business of any Company;

     (h) Liens arising out of conditional sale, hire purchase, title retention, consignment or
similar arrangements for the sale of goods entered into by any Company in the ordinary course of
business;

     (i) Liens securing Indebtedness incurred pursuant to Section 6.01(f) or Section
6.01(g); provided that any such Liens attach only to the property being financed
pursuant to such Indebtedness and any proceeds of such property and do not encumber any other
property of any Company;

     (j) bankers’ Liens, rights of setoff and other similar Liens existing solely with respect to
cash and Cash Equivalents on deposit in one or more accounts maintained by any Company, in each
case granted in the ordinary course of business in favor of the bank or banks with which such
accounts are maintained, securing amounts owing to such bank with respect to treasury, depositary
and cash management services or automated clearinghouse transfer of funds (including pooled
account arrangements and netting arrangements); provided that, unless such Liens are
non-consensual and arise by operation of law, in no case shall any such Liens secure (either
directly or indirectly) the repayment of any other Indebtedness;

     (k) Liens granted (i) pursuant to the Loan Documents to secure the Secured Obligations or
(ii) pursuant to the Revolving Credit Security Documents to secure the “Secured

	 	 	 
	 

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Obligations” (as defined in the Revolving Credit Agreement) and any Permitted Revolving Credit Facility
Refinancings thereof;

     (l) licenses of Intellectual Property granted by any Company in the ordinary course of
business and not interfering in any material respect with the ordinary conduct of business of the
Companies;

     (m) the filing of UCC or PPSA financing statements (or the equivalent in other jurisdictions)
solely as a precautionary measure in connection with operating leases or consignment of goods;

     (n) Liens on property of Excluded Subsidiaries securing Indebtedness of Excluded Subsidiaries
permitted by Section 6.01(m) and (p);

     (o) Liens securing the refinancing of any Indebtedness secured by any Lien permitted by
clauses (c), (i) or (r) of this Section 6.02 or this clause (o) without any change in the
assets subject to such Lien and to the extent such refinanced Indebtedness is permitted by
Section 6.01;

     (p) to the extent constituting a Lien, the existence of the “equal and ratable” clause in the
Senior Note Documents (and any Permitted Refinancings thereof) (but not any security interests
granted pursuant thereto);

     (q) Liens in favor of customs and revenue authorities arising as a matter of law to secure
payment of customs duties in connection with the importation of goods in the ordinary course of
business;

     (r) Liens on assets acquired in a Permitted Acquisition or on property of a person existing
at the time such person is acquired or merged with or into or amalgamated or consolidated with any
Company to the extent permitted hereunder or such assets are acquired (and not created in
anticipation or contemplation thereof); provided that (i) such Liens do not extend to
property not subject to such Liens at the time of acquisition (other than improvements thereon and
proceeds thereof) and are no more favorable to the lienholders than such existing Lien and (ii)
the aggregate principal amount of Indebtedness secured by such Liens does not exceed $50 million
at any time outstanding;

     (s) any encumbrance or restriction (including put and call agreements) solely in respect of
the Equity Interests of any Joint Venture or Joint Venture Subsidiary that is not a Loan Party,
contained in such Joint Venture’s or Joint Venture Subsidiary’s Organizational Documents or the
joint venture agreement or stockholders agreement in respect of such Joint Venture or Joint
Venture Subsidiary;

     (t) Liens granted in connection with Indebtedness permitted under Section 6.01(e)
that are limited in each case to the Securitization Assets transferred or assigned pursuant to the
related Securitization Facility;

     (u) Liens (which, if the same apply to any Collateral, are junior to the Liens on the
Collateral securing the Secured Obligations) not otherwise permitted by clauses (a) through (t)

	 	 	 
	 

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of this Section 6.02 securing liabilities not in excess of $25 million in the aggregate at
any time outstanding;

     (v) To the extent constituting Liens, rights under purchase and sale agreements with respect
to Equity Interests permitted to be sold in Asset Sales permitted under Section 6.06;

     (w) Liens securing obligations owing to the Loan Parties so long as such obligations and
Liens, where owing by or on assets of Loan Parties, are subordinated to the Secured Obligations
and to the Secured Parties’ Liens on the Collateral in a manner satisfactory to the Administrative
Agent; and

     (x) Liens created, arising or securing obligations under the Receivables Purchase Agreement.

provided, however, that notwithstanding any of the foregoing, no consensual Liens
(other than Liens permitted under clause (s) and (v) above, in the case of Securities Collateral)
shall be permitted to exist, directly or indirectly, on any Securities Collateral, other than Liens
granted pursuant to the Security Documents or the Revolving Credit Security Documents.

SECTION
6.03 Sale and Leaseback Transactions. Enter into any arrangement, directly or
indirectly, with any person whereby it shall sell or transfer any property, real or personal, used
or useful in its business, whether now owned or hereafter acquired, and thereafter rent or lease such property or other property which it
intends to use for substantially the same purpose or purposes as the property being sold or
transferred (a “Sale and Leaseback Transaction”) unless (i) the sale of such property is permitted
by Section 6.06, (ii) any Liens arising in connection with its use of such property are
permitted by Section 6.02 and (iii) after giving effect to such Sale and Leaseback
Transaction, (A) in the case of NKL, the aggregate fair market value of all properties covered by
Sale and Leaseback Transactions entered into by NKL would not exceed $200 million and (B) in the
case of Holdings or any other Subsidiary of Holdings, the aggregate fair market value of all
properties covered by Sale and Leaseback Transactions entered into by all such persons would not
exceed $100 million.

SECTION
6.04 Investments, Loan and Advances. Directly or indirectly, lend money or
credit (by way of guarantee or otherwise) or make advances to any person, or purchase or acquire
any stock, bonds, notes, debentures or other obligations or securities of, or any other ownership
interest in, or make any capital contribution to, any other person, or purchase or otherwise
acquire (in one transaction or a series of transactions) all or substantially all of the property
and assets or business of any other person or assets constituting a business unit, line of business
or division of any other person, or purchase or own a futures contract or otherwise become liable
for the purchase or sale of currency or other commodities at a future date in the nature of a
futures contract (all of the foregoing, collectively, “Investments”; it being understood that the
amount of any Investment shall be the amount actually invested, without adjustment for subsequent
increases or decreases in the value of such Investment and when determining the amount of an
Investment that remains outstanding, the last paragraph of this Section 6.04 shall apply),
except that the following shall be permitted:

	 	 	 
	 

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     (a) Investments consisting of unsecured guaranties of, or other unsecured Contingent
Obligations with respect to, operating payments not constituting Indebtedness for borrowed money
incurred by Subsidiaries that are not Loan Parties, in the ordinary course of business, that, to
the extent paid, shall not exceed an aggregate amount equal to $75 million less the amount
of Contingent Obligations by Loan Parties in respect of Companies that are not Loan Parties
permitted pursuant to Section 6.01(i)(ii);

     (b) Investments outstanding on the Closing Date and identified on Schedule 6.04(b);

     (c) the Companies may (i) acquire and hold accounts receivable owing to any of them if
created or acquired in the ordinary course of business or in connection with a Permitted
Acquisition, (ii) invest in, acquire and hold cash and Cash Equivalents, (iii) endorse negotiable
instruments held for collection in the ordinary course of business or (iv) make lease, utility and
other similar deposits in the ordinary course of business;

     (d) Investments in Securitization Subsidiaries in connection with Securitization Facilities
permitted by Section 6.01(e);

     (e) the Loan Parties and their Subsidiaries may make loans and advances (including payroll,
travel and entertainment related advances) in the ordinary course of business to their respective
employees (other than any loans or advances to any director or executive officer (or
equivalent thereof) that would be in violation of Section 402 of the Sarbanes-Oxley Act) so
long as the aggregate principal amount thereof at any time outstanding (determined without regard
to any write-downs or write-offs of such loans and advances) shall not exceed (when aggregated
with loans and advances outstanding pursuant to clause (h) below) $15 million;

     (f) any Company may enter into Hedging Agreements to the extent permitted by Section
6.01(c);

     (g) Investments made by any Company as a result of consideration received in connection with
an Asset Sale made in compliance with Section 6.06;

     (h) loans and advances to directors, employees and officers of the Loan Parties and their
Subsidiaries for bona fide business purposes, in aggregate amount not to exceed (when aggregated
with loans and advances outstanding pursuant to clause (e) above) $15 million at any time
outstanding; provided that no loans in violation of Section 402 of the Sarbanes-Oxley Act
shall be permitted hereunder;

     (i) Investments (i) by any Company in any other Company outstanding on the Closing Date and
Investments made on or about the Closing Date in connection with the Receivables Purchase
Agreement, (ii) by any Company in any Unrestricted Grantor, (iii) by any Restricted Grantor in any
other Restricted Grantor, (iv) by an Unrestricted Grantor in any Restricted Grantor up to an
aggregate amount made after the Closing Date of $50 million in the aggregate at any one time
outstanding and (v) by any Company that is not a Loan Party in any other Company; provided
that any such Investment in the form of a loan or advance to any Loan Party shall be subordinated
to the Secured Obligations on terms reasonably satisfactory to the Administrative Agent and, in
the case of a loan or advance by a Loan Party, evidenced by

	 	 	 
	 

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an Intercompany Note and pledged by such Loan Party as Collateral pursuant to the Security Documents;

     (j) Investments in securities or other obligations received upon foreclosure or pursuant to
any plan of reorganization or liquidation or similar arrangement upon the bankruptcy or insolvency
of trade creditors or customers or in connection with the settlement of delinquent accounts in the
ordinary course of business, and Investments received in good faith in settlement of disputes or
litigation;

     (k) Investments in Joint Ventures in which the Loan Parties hold at least 50% of the
outstanding Equity Interests or Joint Venture Subsidiaries made with the Net Cash Proceeds of
Asset Sales made in accordance with Section 6.06(k);

     (l) Investments in Norf GmbH for purposes of making Capital Expenditures in an aggregate
amount not to exceed $10 million during any Fiscal Year;

     (m) Permitted Acquisitions; provided that the Lien on and security interest in such
Investment granted or to be granted in favor of the Collateral Agent under the Security Documents
shall be maintained or created in accordance with the provisions of Section 5.11 or
Section 5.12, as applicable;

     (n) [INTENTIONALLY OMITTED];

     (o) Mergers, amalgamations and consolidations in compliance with Section 6.05;
provided that the Lien on and security interest in such Investment granted or to be
granted in favor of the Collateral Agent under the Security Documents shall be maintained or
created in accordance with the provisions of Section 5.11 or Section 5.12, as
applicable;

     (p) Investments in respect of European Cash Pooling Arrangements, subject to the limitations
set forth in Section 6.07;

     (q) Investments consisting of guarantees of Indebtedness referred to in clauses (i) (to the
extent such guarantee is in effect on the Closing Date or permitted as part of a Permitted
Refinancing), (ii) and (iii) of Section 6.01(b) and Contingent Obligations permitted by
Section 6.01(i); and

     (r) other Investments in an aggregate amount not to exceed $200 million at any time
outstanding; provided that any such Investment in the form of a loan or advance to any
Loan Party shall be subordinated to the Secured Obligations on terms reasonably satisfactory to
the Administrative Agent and, in the case of a loan or advance by a Loan Party, evidenced by an
Intercompany Note and pledged by such Loan Party as Collateral pursuant to the Security Documents.

An Investment shall be deemed to be outstanding to the extent not returned in the same form as the
original Investment to any Company. The outstanding amount of an Investment shall, in the case of
a Contingent Obligation that has been terminated, be reduced to the extent no payment is or was
made with respect to such Contingent Obligation upon or prior to the termination of such Contingent
Obligation; and the outstanding amount of other Investments shall be reduced by the

	 	 	 
	 

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amount of cash
or Cash Equivalents received with respect to such Investment upon the sale or disposition thereof,
or constituting a return of capital with respect thereto or, repayment of the principal amount
thereof, in the case of a loan or advance.

SECTION
6.05 Mergers, Amalgamations and Consolidations. Wind up, liquidate or
dissolve its affairs or enter into any transaction of merger, amalgamation or consolidation (or
agree to do any of the foregoing at any future time), except that the following shall be permitted:

     (a) Asset Sales in compliance with Section 6.06;

     (b) Permitted Acquisitions in compliance with Section 6.04;

     (c) (i) any Company may merge, amalgamate or consolidate with or into any Unrestricted
Grantor (provided that (A) in the case of any merger, amalgamation or consolidation
involving a Borrower, a Borrower is the surviving or resulting person, and in any other case, an
Unrestricted Grantor is the surviving or resulting person, (B) no Borrower shall merge, amalgamate
or consolidate with or into any other Borrower, (C) in the case of any merger, amalgamation or
consolidation involving Canadian Borrower, the surviving or resulting Borrower is organized under
the laws of Canada or the United States (or any state thereof or the District of Columbia) and (D)
in the case of any merger or consolidation involving the U.S. Borrower, the surviving Borrower is
organized under the laws of the United States (or any state thereof or the District of Columbia)), (ii) any Restricted Grantor may
merge, amalgamate or consolidate with or into any other Restricted Grantor organized under the
laws of the same country (or any jurisdiction within such same country) (provided that a
Subsidiary Guarantor is the surviving or resulting person), and (iii) any Company that is not a
Loan Party may merge, amalgamate or consolidate with or into any Restricted Grantor
(provided that a Subsidiary Guarantor is the surviving or resulting person);
provided that, in the case of each of the foregoing clauses (i) through (iii), (1) the
surviving or resulting person is a Wholly Owned Subsidiary of Holdings, (2) the Lien on and
security interest in such property granted or to be granted in favor of the Collateral Agent under
the Security Documents shall be maintained in full force and effect and perfected and enforceable
(to at least the same extent as in effect immediately prior to such transfer) or created in
accordance with the provisions of Section 5.11 or Section 5.12, as applicable and
(3) no Default is then continuing or would result therefrom; provided that in the case of
any amalgamation or consolidation involving a Loan Party, at the request of the Administrative
Agent, such Loan Party and each other Loan Party shall confirm its respective Secured Obligations
and Liens under the Loan Documents in a manner reasonably satisfactory to the Administrative
Agent;

     (d) any Subsidiary that is not a Loan Party may merge, amalgamate or consolidate with or into
any other Subsidiary that is not a Loan Party;

     (e) Holdings and Canadian Borrower may consummate the Permitted Holdings Amalgamation;

     (f) any Subsidiary (other than any Borrower) may dissolve, liquidate or wind up its affairs
at any time; provided that such dissolution, liquidation or winding up, as applicable,
could not reasonably be expected to have a Material Adverse Effect; and

	 	 	 
	 

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     (g) any Unrestricted Grantor (other than a Borrower) may dissolve, liquidate or wind-up its
affairs (collectively, “Wind-Up”), so long as all of its assets are distributed or otherwise
transferred to an Unrestricted Grantor organized under the laws of the same jurisdiction as the
Unrestricted Grantor Winding-Up its affairs and any Restricted Grantor may Wind-Up so long as all
of its assets are distributed or otherwise transferred to a Restricted Grantor or an Unrestricted
Grantor organized under the laws of the same jurisdiction as the Restricted Grantor Winding-Up its
affairs; provided that (1) the Lien on and security interest in such property granted or
to be granted in favor of the Collateral Agent under the Security Documents shall be maintained in
full force and effect and perfected and enforceable (to at least the same extent as in effect
immediately prior to such transfer) or created in accordance with the provisions of Section
5.11 or Section 5.12, as applicable and (2) no Default is then continuing or would
result therefrom.

     To the extent the Required Lenders or such other number of Lenders whose consent is required
under Section 11.02, as applicable, waive the provisions of this Section 6.05 with
respect to the sale of any Collateral, or any Collateral is sold as permitted by this Section
6.05, and so long as the Lien of the Revolving Credit Funding Agent or the Revolving Credit
Collateral Agent (or any other Revolving Credit Agents) pursuant to the Revolving Credit Loan
Documents in such Collateral is also released, such Collateral (unless sold to a Loan Party) shall
be sold free and clear of the Liens created by the Security Documents, and so long as Borrowers
shall have provided the Agents with such certifications or documents as any Agent shall
reasonably request in order to demonstrate compliance with this Section 6.05, and the
Agents shall take all actions as Administrative Borrower reasonably requests in order to effect the
foregoing.

SECTION 6.06 Asset Sales. Effect any Asset Sale, or agree to effect any Asset Sale,
except that the following shall be permitted:

     (a) disposition of used, worn out, obsolete or surplus property by any Company in the
ordinary course of business and the abandonment or other disposition of Intellectual Property that
is, in the reasonable judgment of Borrowers, no longer economically practicable to maintain or
useful in the conduct of the business of the Companies taken as a whole;

     (b) so long as no Default is then continuing or would result therefrom, any other Asset Sale
(other than the Equity Interests of any Wholly Owned Subsidiary unless all of the Equity Interests
of such Subsidiary then owned by any of the Companies are sold to the purchaser thereof in a sale
permitted by this clause (b)) for fair market value, with at least 80% of the consideration
received for all such Asset Sales payable in cash upon such sale; provided,
however, that with respect to any such Asset Sale pursuant to this clause (b), the
aggregate consideration received during any fiscal year for all such Asset Sales shall not exceed
$150 million;

     (c) leases, subleases or licenses of the properties of any Company in the ordinary course of
business and which do not, individually or in the aggregate, interfere in any material respect
with the ordinary conduct of the business of any Company;

 

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     (d) mergers and consolidations, and liquidations and dissolutions in compliance with
Section 6.05;

     (e) sales, transfers and other dispositions of Accounts for the fair market value thereof in
connection with a Permitted Factoring Facility so long as at any time of determination the
aggregate book value of the then outstanding Accounts subject to a Permitted Factoring Facility
does not exceed an amount equal to $300 million less the amount of Indebtedness under all
outstanding Securitization Facilities at such time less the amount of Indebtedness
outstanding under Section 6.01(m) at such time;

     (f) the sale or disposition of cash and Cash Equivalents in connection with a transaction
otherwise permitted under the terms of this Agreement;

     (g) assignments and licenses of intellectual property of any Loan Party and its Subsidiaries
in the ordinary course of business and which do not, individually or in the aggregate, interfere
in any material respect with the ordinary conduct of the business of any Company;

     (h) Asset Sales (other than the Equity Interests of any Subsidiary unless all of the Equity
Interests of such Subsidiary then owned by any of the Companies are sold to the purchaser thereof in a sale permitted by this clause (h)) (i) by and among Unrestricted
Grantors (other than Holdings), (ii) by and among Restricted Grantors organized under the laws of
the same country (or jurisdictions within such same country), (iii) by Restricted Grantors to
Unrestricted Grantors so long as the consideration paid by Unrestricted Grantors in each such
Asset Sale does not exceed fair market value for such Asset Sale, (iv) by Unrestricted Grantors to
Restricted Grantors of property for fair market value, and for aggregate consideration, not in
excess of $25 million for all such Asset Sales following the Closing Date, (v) by Companies that
are not Loan Parties to Loan Parties so long as the consideration paid by Loan Parties in each
such Asset Sale does not exceed (1) the fair market value for such Asset Sale and (2) $25 million
for all such Asset Sales following the Closing Date; and (vi) by and among Companies that are not
Loan Parties; provided that (A) in the case of any transfer from one Loan Party to another
Loan Party, any security interests granted to the Collateral Agent for the benefit of any Secured
Parties pursuant to the relevant Security Documents in the assets so transferred shall (1) remain
in full force and effect and perfected and enforceable (to at least the same extent as in effect
immediately prior to such transfer) or (2) be replaced by security interests granted to the
relevant Collateral Agent for the benefit of the relevant Secured Parties pursuant to the relevant
Security Documents, which new security interests shall be in full force and effect and perfected
and enforceable (to at least the same extent as in effect immediately prior to such transfer) and
(B) no Default is then continuing or would result therefrom;

     (i) the Companies may consummate Asset Swaps (other than Asset Swaps constituting all or
substantially all of the asset of a Company), so long as (x) each such sale is in an arm’s-length
transaction and the applicable Company receives at least fair market value consideration (as
determined in good faith by such Company), (y) the Collateral Agent shall have a First Priority
perfected Lien on the assets acquired pursuant to such Asset Swap at least to the same extent as
the assets sold pursuant to such Asset Swap (immediately prior to giving effect thereto) and (z)
the aggregate fair market value of all assets sold pursuant to this clause

 

122

 

(i) shall not exceed
$25 million in the aggregate since the Closing Date; provided that so long as the assets
acquired by any Company pursuant to the respective Asset Swap are located in the same country as
the assets sold by such Company, such $25 million aggregate cap will not apply to such Asset Swap;

     (j) sales, transfers and other dispositions of Receivables and Related Security to a
Securitization Subsidiary for the fair market value thereof and all sales, transfers or other
dispositions of Securitization Assets by a Securitization Subsidiary under, and pursuant to, a
related Securitization Facility permitted under Section 6.01(e);

     (k) so long as no Default is then continuing or would result therefrom, the arm’s-length sale
or disposition for cash of Equity Interests in a Joint Venture Subsidiary for fair market value or
the issuance of Equity Interests in a Joint Venture Subsidiary; provided, however,
that the aggregate fair market value of all such Equity Interests sold or otherwise disposed of
pursuant to this clause (k) following the Closing Date shall not exceed $300 million; and

     (l) issuances of Equity Interests permitted under Section 6.13(b)(i), (ii),
(iii), (iv) and (vi).

     To the extent the Required Lenders or such other number of Lenders whose consent is required
under Section 11.02, as applicable, waive the provisions of this Section 6.06 with
respect to the sale of any Collateral or any Collateral is sold as permitted by this Section
6.06, and so long as the Lien of the Revolving Credit Funding Agent or the Revolving Credit
Collateral Agent (or any other Revolving Credit Agents) pursuant to the Revolving Credit Loan
Documents in such Collateral is also released, such Collateral (unless sold to a Loan Party) shall
be sold free and clear of the Liens created by the Security Documents, and so long as the Loan
Parties shall have provided the Agents such certificates or documents as any Agent shall reasonably
request in order to demonstrate compliance with this Section 6.06, the Agents shall take
all actions as Administrative Borrower reasonably requests in order to effect the foregoing.

SECTION 6.07 European Cash Pooling Arrangements. Amend, vary or waive any term of the
European Cash Pooling Arrangements without express written consent of the Administrative Agent, or
enter into any new pooled account or netting agreement with any Affiliate without express written
consent of the Administrative Agent. Permit the aggregate amount owed pursuant to the European
Cash Pooling Arrangements by all Companies who are not Loan Parties minus the aggregate
amount on deposit pursuant to the European Cash Pooling Arrangements from such Persons to exceed
$30 million.

SECTION 6.08 Dividends. Authorize, declare or pay, directly or indirectly, any
Dividends with respect to any Company, except that the following shall be permitted:

     (a) (i) Dividends by any Company to any Loan Party that is a Wholly Owned Subsidiary of
Holdings, (ii) Dividends by Holdings payable solely in Qualified Capital Stock and (iii) Dividends
by Holdings payable with the proceeds of Permitted Holdings Indebtedness;

 

123

 

     (b) (i) Dividends by any Company that is not a Loan Party to any other Company that is not a
Loan Party but is a Wholly Owned Subsidiary of Holdings and (ii) cash Dividends by any Company
that is not a Loan Party to the holders of its Equity Interests on a pro rata basis;

     (c) (A) to the extent actually used by Holdings to pay such franchise taxes, costs and
expenses, payments by Borrowers to or on behalf of Holdings in an amount sufficient to pay
franchise taxes and other fees solely required to maintain the legal existence of Holdings and (B)
payments by Borrowers to or on behalf of Holdings in an amount sufficient to pay out-of-pocket
legal, accounting and filing costs and other expenses in the nature of overhead in the ordinary
course of business of Holdings, in the case of clauses (A) and (B) in an aggregate amount not to
exceed $5 million in any fiscal year;

     (d) Beginning with the fiscal year of Canadian Borrower commencing in 2009, Canadian Borrower
may pay cash Dividends to Holdings the proceeds of which may be utilized by Holdings to pay cash
Dividends to the holders of its Equity Interests (or to repay Subordinated Debt Loans) in an
amount declared and paid in any fiscal year of Canadian Borrower not to exceed 50% of Consolidated
Net Income for the previous fiscal year of Canadian Borrower (beginning with the first complete fiscal year commencing after the Closing
Date) (such amount for any such fiscal year, determined after giving effect to clause (ii) below,
the “CNI Basket”) less the aggregate amount of any repayments or redemptions of
Indebtedness under the Senior Note Documents (or any Permitted Refinancings of any of such
Indebtedness) made out of the CNI Basket for such fiscal year pursuant to clause (z) of
Section 6.11(a); provided that (i) the Dividends described in this clause (d)
shall not be permitted if a Default is continuing at the date of declaration or payment thereof or
would result therefrom and (ii) Consolidated Net Income shall be calculated for purposes of this
clause (d) and for purposes of Section 6.11 without giving effect to non-cash after-tax
gains and losses resulting from the mark-to-market of any Hedging Agreement in accordance with the
Statement of Financial Accounting Standards No. 133 or non-cash after-tax gains or losses relating
to any balance sheet translation in accordance with the Statement of Financial Accounting
Standards No. 52 and, in either case, assuming an applicable tax rate equal to 35%; and

     (e) to the extent constituting a Dividend, payments permitted by Section 6.09(d) that
do not relate to Equity Interests.

SECTION 6.09 Transactions with Affiliates. Enter into, directly or indirectly, any
transaction or series of related transactions, whether or not in the ordinary course of business,
with or for the benefit of any Affiliate of any Company (other than between or among Loan Parties),
other than on terms and conditions at least as favorable to such Company as would reasonably be
obtained by such Company at that time in a comparable arm’s-length transaction with a person other
than an Affiliate, except that the following shall be permitted:

     (a) Dividends permitted by Section 6.08;

     (b) Investments permitted by Section 6.04(d), (e), (h), (i)
or (l);

 

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     (c) mergers, amalgamations and consolidations permitted by Section 6.05(c),
(d), (e), (f) or (g), Asset Sales permitted by Section
6.06(h) and issuances of Equity Interests by Holdings or among Loan Parties, in each case, to
the extent permitted by Section 6.13(b);

     (d) reasonable and customary director, officer and employee compensation (including bonuses)
and other benefits (including retirement, health, stock option and other benefit plans) and
indemnification arrangements, in each case approved by the Board of Directors of Canadian
Borrower;

     (e) transactions with customers, clients, suppliers, joint venture partners or purchasers or
sellers of goods and services, in each case in the ordinary course of business and otherwise not
prohibited by the Loan Documents;

     (f) the existence of, and the performance by any Company of its obligations under the terms
of, any limited liability company, limited partnership or other Organizational Document or
securityholders agreement (including any registration rights agreement or purchase agreement
related thereto) to which it is a party on the Closing Date and which has been disclosed in
writing to the Administrative Agent as in effect on the Closing Date, and
similar agreements that it may enter into thereafter, to the extent not more adverse to the
interests of the Lenders in any material respect, when taken as a whole, than any of such
documents and agreements as in effect on the Closing Date;

     (g) the Transactions as contemplated by the Transaction Documents;

     (h) Securitization Facilities permitted under Section 6.01(e) and transactions in
connection therewith on a basis no less favorable to the applicable Company as would be obtained
in a comparable arm’s length transaction with a person not an Affiliate thereof;

     (i) cash management netting and pooled account arrangements permitted under Section
6.01(r);

     (j) transactions between or among any Companies that are not Loan Parties;

     (k) transactions between Loan Parties and Companies that are not Loan Parties that are at
least as favorable to each such Loan Party as would reasonably be obtained by such Loan Party in a
comparable arm’s-length transaction with a person other than an Affiliate; and

     (l) transactions contemplated by the Receivables Purchase Agreement;

provided that notwithstanding any of the foregoing or any other provision of this
Agreement, all intercompany loans, advances or other extensions of credit made to or by Companies
organized in Switzerland shall be on fair market terms.

SECTION 6.10 [INTENTIONALLY OMITTED].

SECTION 6.11 Prepayments of Other Indebtedness; Modifications of Organizational Documents
and Other Documents, etc. Directly or indirectly:

	 	 	 
	 

	 	 

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     (a) (i) make any voluntary or optional payment of principal on or prepayment on or redemption
or acquisition for value of, or complete any mandatory prepayment, redemption or purchase offer in
respect of, or otherwise voluntarily or optionally defease or segregate funds with respect to, any
Indebtedness under the Senior Note Documents or any Subordinated Indebtedness (including the
Subordinated Debt Loan and any Additional Subordinated Debt Loan but excluding any Subordinated
Indebtedness wholly among Loan Parties) or any Permitted Refinancings of any of such Indebtedness,
except (v) the Subordinated Debt Loan may be repaid with the proceeds of Permitted Holdings
Indebtedness, (w) Indebtedness under the Senior Note Documents may be repaid or redeemed with the
proceeds of Incremental Term Loans, (x) with the proceeds of a Permitted Refinancing of such
Indebtedness, (y) redemptions of the Senior Notes required under the terms of Senior Note
Documents pursuant to Section 4.17 of the Senior Note Agreement (as in effect on the Closing Date)
as a result of the Hindalco Acquisition and (z) beginning in 2009, and so long as no Default is
continuing or would result therefrom, repayments or redemptions of Indebtedness under the Senior
Notes Documents (or any Permitted Refinancings (other than a refinancing with Incremental Term
Loans) of any of such Indebtedness) in an aggregate amount not to exceed the CNI Basket for the
previous fiscal year of Canadian Borrower (beginning with the first complete fiscal year
commencing after the Closing Date) less the aggregate amount of any cash Dividends paid
out of the CNI Basket for such fiscal year pursuant to Section 6.08(d), (ii) make any
payment on or with respect to any Subordinated Indebtedness wholly among Loan Parties in violation
of the Subordination provisions thereof or (iii) make any payment (whether, voluntary, mandatory,
scheduled or otherwise) on or with respect to any Subordinated Indebtedness (including payments of
principal and interest thereon, but excluding the discharge or release by Novelis AG (as
consideration for the purchase of receivables under the Receivables Purchase Agreement) of loans
or advances made by Novelis AG to German Seller) if an Event of Default is continuing or would
result therefrom;

     (b) [INTENTIONALLY OMITTED];

     (c) amend or modify, or permit the amendment or modification of, any provision of any
document governing any Material Indebtedness (other than Indebtedness under the Loan Documents or
Revolving Credit Loan Documents (or any Permitted Revolving Credit Facility Refinancings thereof)
and Indebtedness of NKL permitted under Section 6.01(m) or listed on Schedule
6.01) in any manner that, taken as a whole, is adverse in any material respect to the
interests of the Lenders;

     (d) amend or modify, or permit the amendment or modification of, any provision of any
document governing any Indebtedness under the Revolving Credit Loan Documents (or any Permitted
Revolving Credit Facility Refinancings thereof) if such amendment or modification would (i) cause
the aggregate principal amount (or accreted value, if applicable) of all such Indebtedness, after
giving effect to such amendment or modification, to at any time exceed the Maximum Revolving
Credit Facility Amount, (ii) cause the “Applicable Margin” or similar component of the interest
rate or yield provisions applicable to such Indebtedness, after giving effect to such amendment or
modification, to be increased from the highest “Applicable Margin” set forth in the Revolving
Credit Loan Documents as of the Closing Date by more than 3% per annum (excluding increases
resulting from the accrual of interest at the default rate specified in the Revolving Credit
Agreement), (iii) cause such Indebtedness to have a final

 

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maturity date earlier than the final
maturity date of such Indebtedness immediately prior to such amendment or modification or (iv)
result in the persons that are (or are required to be) obligors under such Indebtedness to be
different from the persons that are (or are required to be) obligors under such Indebtedness being
so amended or modified (unless such persons required to be obligors under such Indebtedness are or
are required to be or become obligors under the Loan Documents); and provided that prior
to the effectiveness of such amendment or modification, a Responsible Officer of Administrative
Borrower shall have delivered an Officers’ Certificate to the Administrative Agent (together with
a reasonably detailed description of the material terms and conditions of such amendment or
modification or drafts of the documentation relating thereto) certifying that Administrative
Borrower has determined in good faith that such terms and conditions satisfy the foregoing
requirements;

     (e) terminate, amend or modify any of its Organizational Documents (including (x) by the
filing or modification of any certificate of designation and (y) any election to treat any
Pledged Securities (as defined in the Security Agreement) as a “security” under Section 8-103
of the UCC other than concurrently with the delivery of certificates representing such Pledged
Securities to the Collateral Agent) or any agreement to which it is a party with respect to its
Equity Interests (including any stockholders’ agreement), or enter into any new agreement with
respect to its Equity Interests, other than any such amendments or modifications or such new
agreements which are not adverse in any material respect to the interests of the Lenders;

     (f) amend or modify, or grant any consents, waivers or approvals with respect to, or permit
the amendment or modification of, or granting of any consents, waivers or approvals with respect
to, the Receivables Purchase Agreement, without the consent of the Administrative Agent; or

     (g) amend or modify, or permit the amendment or modification of, any provision of any
document governing any Subordinated Debt Loan or Additional Subordinated Debt Loan in any manner
except as consented to by the Administrative Agent in connection with the Permitted Holdings
Amalgamation and except in a manner that is not adverse in any respect to the Lenders and
consented to by the Administrative Agent or in connection with increasing the Subordinated Debt
Loan pursuant to an Additional Subordinated Debt Loan.

SECTION 6.12 Limitation on Certain Restrictions on Subsidiaries. Directly or
indirectly, create or otherwise cause or suffer to exist or become effective any encumbrance or
restriction on the ability of any Subsidiary of Canadian Borrower to (a) pay dividends or make any
other distributions on its capital stock or any other interest or participation in its profits
owned by Canadian Borrower or any Subsidiary of Canadian Borrower, or pay any Indebtedness owed to
Canadian Borrower or a Subsidiary of Canadian Borrower, (b) make loans or advances to Canadian
Borrower or any Subsidiary of Canadian Borrower or (c) transfer any of its properties to Canadian
Borrower or any Subsidiary of Canadian Borrower, except for such encumbrances or restrictions
existing under or by reason of (i) applicable Requirements of Law; (ii) this Agreement and the
other Loan Documents; (iii) the Senior Note Documents and the Revolving Credit Loan Documents or
other Material Indebtedness; provided that in the case of such other Material Indebtedness,
such encumbrances and restrictions are, taken as a whole, no more restrictive than such
encumbrances and restrictions in the Loan Documents in existence on the Closing Date; (iv)
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governing a leasehold interest of a Company; (v) customary provisions restricting assignment of any agreement entered
into by a Subsidiary of Canadian Borrower; (vi) any holder of a Lien permitted by Section
6.02 restricting the transfer of the property subject thereto; (vii) customary restrictions and
conditions contained in any agreement relating to the sale of any property permitted under
Section 6.06 pending the consummation of such sale; (viii) any agreement in effect at the
time such Subsidiary of Canadian Borrower becomes a Subsidiary of Canadian Borrower, so long as
such agreement was not entered into in connection with or in contemplation of such person becoming
a Subsidiary of Canadian Borrower; (ix) without affecting the Loan Parties’ obligations under
Section 5.11, customary provisions in partnership agreements, shareholders’ agreements,
joint venture agreements, limited liability company organizational governance documents and other
Organizational Documents, entered into in the ordinary course of business (or in connection with
the formation of such partnership, joint venture, limited liability company or similar person) that
(A) restrict the transfer of Equity Interests in such partnership, joint venture, limited
liability company or similar person or (B) the case of any Joint Venture or Joint Venture
Subsidiary that is not a Loan Party, provide for other restrictions of the type described in
clauses (a), (b) and (c) above, solely with respect to the Equity Interests in, or property held
in, such joint venture, and customary provisions in asset sale and stock sale agreements and other
similar agreements permitted hereunder that provide for restrictions of the type described in
clauses (a), (b) and (c) above, solely with respect to the assets or persons subject to such sale
agreements; (x) restrictions on cash or other deposits or net worth imposed by suppliers or
landlords under contracts entered into in the ordinary course of business; (xi) any instrument
governing Indebtedness assumed in connection with any Permitted Acquisition, which encumbrance or
restriction is not applicable to any person, or the properties or assets of any person, other than
the person or the properties or assets of the person so acquired; or (xii) any encumbrances or
restrictions imposed by any amendments or refinancings that are otherwise not prohibited by the
Loan Documents of the contracts, instruments or obligations referred to in clauses (iii), (viii) or
(xi) above; provided that such amendments or refinancings are no more materially
restrictive with respect to such encumbrances and restrictions than those prior to such amendment
or refinancing.

SECTION 6.13 Limitation on Issuance of Capital Stock.

     (a) Except as permitted by clause (b)(vi) below, issue any Equity Interest that is not
Qualified Capital Stock.

     (b) Issue any Equity Interest (including by way of sales of treasury stock) or any options or
warrants to purchase, or securities convertible into, any Equity Interest, except (i) for stock
splits, stock dividends and additional issuances of Equity Interests which do not decrease the
percentage ownership of any of the Loan Parties in any class of the Equity Interests of such
issuing Company or issuances of Equity Interests in Joint Venture Subsidiaries in connection with
the creation thereof; (ii) Subsidiaries of Canadian Borrower formed after the Closing Date in
accordance with Section 6.14 may issue Equity Interests to Canadian Borrower or the
Subsidiary of Canadian Borrower which is to own such Equity Interests; (iii) Canadian Borrower may
issue common stock that is Qualified Capital Stock to Holdings; (iv) Holdings may issue Equity
Interests that are Qualified Capital Stock; (v) any Company that is not a direct or indirect
Wholly Owned Subsidiary of Holdings may issue Qualified Capital Stock to the extent such issuance
would be a permitted Asset Sale under

	 	 	 
	 

	 	 

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Section 6.06; and (vi) Joint Venture Subsidiaries
may issue Preferred Stock or Disqualified Capital Stock. All Equity Interests issued in
accordance with this Section 6.13(b) shall, to the extent required by Section 5.11
or any Security Document or if such Equity Interests are issued by any Loan Party (other than
Holdings), be delivered to the Collateral Agent for pledge pursuant to the applicable Security
Agreement.

SECTION 6.14 Limitation on Creation of Subsidiaries. Establish, create or acquire any
additional Subsidiaries without the prior written consent of the Required Lenders; provided
that, without such consent, Loan Parties may (i)
establish or create one or more Wholly Owned Subsidiaries of Holdings or (ii) establish,
create or acquire one or more Subsidiaries in connection with an Investment made pursuant to
Section 6.04(d), (k), (m), (o) or (p), so long as, in each
case, Section 5.11(b) shall be complied with.

SECTION 6.15 Business.

     (a) Each of Holdings, Novelis Europe Holdings Limited and Eurofoil shall not engage in any
business or activity other than (i) holding shares in the Equity Interests of its Subsidiaries,
(ii) holding intercompany loans made to Canadian Borrower, (iii) other activities attributable to
or ancillary to its role as a holding company for its Subsidiaries and (iv) compliance with its
obligations under the Loan Documents, the Term Loan Documents (and any Permitted Term Loan
Facility Refinancings thereof), and the Senior Note Documents (and any Permitted Refinancings
thereof).

     (b) With respect to Borrower and the Subsidiaries, engage (directly or indirectly) in any
business other than those businesses in which Borrower and its Subsidiaries are engaged on the
Closing Date as described in the Confidential Information Memorandum (or, in the good faith
judgment of the Board of Directors, which are substantially related thereto or are reasonable
extensions thereof).

     (c) Permit any Securitization Subsidiary to engage in any business or activity other than
performing its obligations under the related Securitization Facility.

SECTION 6.16 Limitation on Accounting Changes. Make or permit any change in
accounting policies or reporting practices or tax reporting treatment, except changes that are
permitted by GAAP or any Requirement of Law and disclosed to the Administrative Agent.

SECTION 6.17 Fiscal Year. Change its fiscal year-end to a date other than March 31.

SECTION 6.18 Lease Obligations. Create, incur, assume or suffer to exist any
obligations as lessee for the rental or hire of real or personal property of any kind under leases
or agreements to lease (other than Capital Lease Obligations permitted under Section
6.01(f)) having an original term of one year or more that would cause the aggregate amount of
rent paid or reserved in respect of all such obligations to exceed $25 million payable in any
fiscal year of Canadian Borrower.

SECTION 6.19 No Further Negative Pledge. Enter into or suffer to exist any consensual
agreement, instrument, deed or lease which prohibits or limits the ability of any Loan Party to
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or revenues, whether now owned or hereafter acquired to secure the Secured Obligations, or which requires the grant of any security for an
obligation if security is granted to secure the Secured Obligations, except the following: (1)
this Agreement and the other Loan Documents; (2) covenants in documents creating Liens permitted by
Section 6.02 prohibiting further Liens on the properties encumbered thereby; (3) the Senior
Note Documents and the Revolving Credit Loan Documents; and (4) any prohibition or limitation that
(a) exists pursuant to applicable Requirements of Law, (b) consists of customary restrictions and
conditions contained in any agreement relating to the sale of any property permitted under
Section 6.06 pending the consummation of such sale, (c) restricts subletting or assignment
of any lease governing a leasehold interest of a Loan Party or a Subsidiary, (d) is permitted under
Section 6.02(s), (e) exists in any agreement or other instrument of a person acquired in an
Investment permitted hereunder in existence at the time of such Investment (but not created in
connection therewith or in contemplation thereof), which prohibition or limitation is not
applicable to any person, or the properties or assets of any person, other than the person, or the
property or assets of the person so acquired, (f) is contained in any joint venture, shareholders
agreement, limited liability operating agreement or other Organizational Document governing a Joint
Venture or Joint Venture Subsidiary which limits the ability of an owner of an interest in a Joint
Venture or Joint Venture Subsidiary from encumbering its ownership interest therein or (g) is
imposed by any amendments or refinancings that are otherwise permitted by the Loan Documents of the
contracts, instruments or obligations referred to in clause (3) or (4)(e); provided that
such amendments and refinancings are no more materially restrictive with respect to such
prohibitions and limitations than those prior to such amendment or refinancing.

SECTION 6.20 Anti-Terrorism Law; Anti-Money Laundering.

     (a) Directly or indirectly, (i) knowingly conduct any business or engage in making or
receiving any contribution of funds, goods or services to or for the benefit of any person
described in Section 3.22, (ii) knowingly deal in, or otherwise engage in any transaction
relating to, any property or interests in property blocked pursuant to the Executive Order or any
other Anti-Terrorism Law, or (iii) knowingly engage in or conspire to engage in any transaction
that evades or avoids, or has the purpose of evading or avoiding, or attempts to violate, any of
the prohibitions set forth in any Anti-Terrorism Law (and the Loan Parties shall deliver to the
Lenders any certification or other evidence requested from time to time by any Lender in its
reasonable discretion, confirming the Loan Parties’ compliance with this Section 6.20).

     (b) Cause or permit any of the funds of such Loan Party that are used to repay the Loans to
be derived from any unlawful activity with the result that the making of the Loans would be in
violation of any Requirement of Law.

     SECTION 6.21 Embargoed Persons. Cause or permit (a) any of the funds or properties of
the Loan Parties that are used to repay the Loans to constitute property of, or be beneficially
owned directly or indirectly by, any person subject to sanctions or trade restrictions under United
States law (“Embargoed Person” or “Embargoed Persons”) that is identified on (1) the “List of
Specially Designated Nationals and Blocked Persons” maintained by OFAC and/or on any other similar list maintained by OFAC
pursuant to any authorizing statute including, but not limited to, the International Emergency
Economic Powers Act, 50 U.S.C.

	 	 	 
	 

	 	 

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§§ 1701 et seq., The Trading with the Enemy Act, 50 U.S.C. App. 1 et
seq., and any Executive Order or Requirement of Law promulgated thereunder, with the result that
the investment in the Loan Parties (whether directly or indirectly) is prohibited by a Requirement
of Law, or the Loans made by the Lenders would be in violation of a Requirement of Law, or (2) the
Executive Order, any related enabling legislation or any other similar Executive Orders or (b) any
Embargoed Person to have any direct or indirect interest, of any nature whatsoever in the Loan
Parties, with the result that the investment in the Loan Parties (whether directly or indirectly)
is prohibited by a Requirement of Law or the Loans are in violation of a Requirement of Law.

SECTION 6.22 Tax Shelter Reporting. Treat the Loans as being a “reportable
transaction” within the meaning of Treasury Regulation Section 1.6011-4. In the event Borrowers
(or any of them) determine to take any action inconsistent with such intention, they will promptly
notify the Administrative Agent thereof. This covenant shall survive the payment and termination
of any Loans under this Agreement.

ARTICLE VII.

GUARANTEE

SECTION 7.01 The Guarantee. The Guarantors hereby jointly and severally guarantee, as
a primary obligor and not as a surety to each Secured Party and their respective successors and
permitted assigns, the prompt payment in full when due (whether at stated maturity, by required
prepayment, declaration, demand, by acceleration or otherwise) of the principal of and interest
(including any interest, fees, costs or charges that would accrue but for the provisions of the
Title 11 of the United States Code after any bankruptcy or insolvency petition under Title 11 of
the United States Code) on the Loans made by the Lenders to, and the Notes held by each Lender of,
each Borrower, and all other Secured Obligations from time to time owing to the Secured Parties by
any Loan Party under any Loan Document (including any Hedging Agreement entered into with a
counterparty that is a Secured Party), and the performance of all obligations under any of the
foregoing, in each case strictly in accordance with the terms thereof (such obligations being
herein collectively called the “Guaranteed Obligations”). In addition to the guarantee contained
herein, each Guarantor that is a Foreign Subsidiary, as well as Holdings, shall execute a Guarantee
governed by the applicable law of such Person’s jurisdiction of organization (each such Guarantee,
a “Foreign Guarantee”) and to the extent that the provisions of this Article VII shall duplicate or
conflict with the provisions thereof, the terms of the Foreign Guarantees shall govern the
obligations of such Guarantors. The Guarantors hereby jointly and severally agree that if
Borrower(s) or other Guarantor(s) shall fail to pay in full when due (whether at stated maturity,
by acceleration or otherwise) any of the Guaranteed Obligations, the Guarantors will promptly pay
the same in cash, without any demand or notice whatsoever as if it was the principal obligor, and
that in the case of any extension of time of payment or renewal of any of the Guaranteed
Obligations, the same will be promptly paid in full when due (whether at extended maturity, by
acceleration or otherwise) in accordance with the terms of such extension or renewal. Without
prejudice to the generality of Section 7.01 and Section 7.02, each Guarantor
expressly confirms that it intends that this guarantee shall extend from time to time to any
(however fundamental and of whatsoever nature and whether or not more onerous) variation, increase,
extension or addition of or to any of the Loan Documents and/or any facility or amount made
available under any of the Loan Documents for the purposes

 

131

 

of or in connection with any of the
following: acquisitions of any nature; increasing working capital; enabling investor distributors
to be made; carrying out restructurings; refinancing existing facilities; refinancing any other
indebtedness; making facilities available to new borrowers; any other variation or extension of the
purposes for which any such facility or amount might be made available from time to time; and any
fees, costs and/or expenses associated with any of the foregoing.

SECTION 7.02 Obligations Unconditional. The obligations of the Guarantors under
Section 7.01 shall constitute a guaranty of payment and to the fullest extent permitted by
applicable Requirements of Law, are absolute, irrevocable and unconditional, joint and several,
irrespective of the value, genuineness, validity, regularity or enforceability of the Guaranteed
Obligations of Borrowers or any other Loan Party under this Agreement, the Notes, if any, or any
other agreement or instrument referred to herein or therein, or any substitution, release or
exchange of any other guarantee of or security for any of the Guaranteed Obligations, and,
irrespective of any other circumstance whatsoever that might otherwise constitute a legal or
equitable discharge or defense of a surety or Guarantor (except for payment in full). Without
limiting the generality of the foregoing, it is agreed that the occurrence of any one or more of
the following shall not alter or impair the liability of the Guarantors hereunder which shall
remain absolute, irrevocable and unconditional under any and all circumstances as described above:

          (i) at any time or from time to time, without notice to the Guarantors, the time for any
performance of or compliance with any of the Guaranteed Obligations shall be extended, or such
performance or compliance shall be waived;

          (ii) any of the acts mentioned in any of the provisions of this Agreement or the Notes, if
any, or any other agreement or instrument referred to herein or therein shall be done or omitted;

          (iii) the maturity of any of the Guaranteed Obligations shall be accelerated, or any of the
Guaranteed Obligations shall be amended in any respect, or any right under the Loan Documents or
any other agreement or instrument referred to herein or therein shall be amended or waived in any
respect or any other guarantee of any of the Guaranteed Obligations or any security therefor shall
be released or exchanged in whole or in part or otherwise dealt with;

          (iv) any Lien or security interest granted to, or in favor of, any Lender or Agent as security
for any of the Guaranteed Obligations shall fail to be perfected; or

          (v) the release of any other Guarantor pursuant to Section 7.09.

     The Guarantors hereby expressly waive diligence, presentment, demand of payment, protest and
all notices whatsoever, and any requirement that any Secured Party exhaust any right, power or
remedy or proceed against any Borrower or any other Loan Party under this Agreement or the Notes,
if any, or any other agreement or instrument referred to herein or therein, or against any other
person under any other guarantee of, or security for, any of the Guaranteed Obligations. The
Guarantors waive any and all notice of the creation, renewal, extension, waiver, termination or
accrual of any of the Guaranteed Obligations and notice of or proof of reliance by any Secured
Party upon this Guarantee or acceptance of this Guarantee, and the

 

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Guaranteed Obligations, and any
of them, shall conclusively be deemed to have been created, contracted or incurred in reliance upon
this Guarantee, and all dealings between Borrowers and the Secured Parties shall likewise be
conclusively presumed to have been had or consummated in reliance upon this Guarantee. This
Guarantee shall be construed as a continuing, absolute, irrevocable and unconditional guarantee of
payment without regard to any right of offset with respect to the Guaranteed Obligations at any
time or from time to time held by Secured Parties, and the obligations and liabilities of the
Guarantors hereunder shall not be conditioned or contingent upon the pursuit by the Secured Parties
or any other person at any time of any right or remedy against any Borrower or any other Loan
Party, or against any other person which may be or become liable in respect of all or any part of
the Guaranteed Obligations or against any collateral security or guarantee therefor or right of
offset with respect thereto. This Guarantee shall remain in full force and effect and be binding
in accordance with and to the extent of its terms upon the Guarantors and the successors and
assigns thereof, and shall inure to the benefit of the Lenders, and their respective successors and
assigns, notwithstanding that from time to time during the term of this Agreement there may be no
Guaranteed Obligations outstanding.

SECTION 7.03 Reinstatement. The obligations of the Guarantors under this ARTICLE
VII shall be automatically reinstated if and to the extent that for any reason any payment by
or on behalf of any Borrower or other Loan Party in respect of the Guaranteed Obligations is
rescinded or must be otherwise restored by any holder of any of the Guaranteed Obligations, whether
as a result of any proceedings in bankruptcy or reorganization or otherwise. The Guarantors
jointly and severally agree that they will indemnify each Secured Party on demand for all
reasonable costs and expenses (including reasonable fees of counsel) incurred by such Secured Party
in connection with such rescission or restoration, including any such costs and expenses incurred
in defending against any claim alleging that such payment constituted a preference, fraudulent
transfer or similar payment under any bankruptcy, insolvency or similar law, other than any costs
or expenses resulting from the bad faith or willful misconduct of such Secured Party.

SECTION 7.04 Subrogation; Subordination. Each Guarantor hereby agrees that until the
indefeasible and irrevocable payment and satisfaction in full in cash of all Guaranteed Obligations
and the expiration and termination of the Commitments of the Lenders under this Agreement it shall
waive any claim and shall not exercise any right or remedy, direct or indirect, arising by reason
of any performance by it of its guarantee in Section 7.01, whether by subrogation or
otherwise, against any Borrower or any other Guarantor of any of the Guaranteed Obligations or any
security for any of the Guaranteed Obligations. Any Indebtedness of any Loan Party permitted
pursuant to Section 6.01(d) shall be subordinated to such Loan Party’s Secured Obligations a manner reasonably satisfactory to the
Administrative Agent.

SECTION 7.05 Remedies. The Guarantors jointly and severally agree that, as between
the Guarantors and the Lenders, the obligations of Borrowers under this Agreement and the Notes, if
any, may be declared to be forthwith due and payable as provided in Section 8.01 (and shall
be deemed to have become automatically due and payable in the circumstances provided in Section
8.01) for purposes of Section 7.01, notwithstanding any stay, injunction or other
prohibition preventing such declaration (or such obligations from becoming automatically due and
payable) as against Borrowers and that, in the event of such declaration (or such obligations being
deemed to have become automatically due and payable), such obligations

 

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(whether or not due and payable by Borrowers) shall forthwith become due and payable by the Guarantors for purposes of
Section 7.01.

SECTION 7.06 Instrument for the Payment of Money. Each Guarantor hereby acknowledges
that the guarantee in this ARTICLE VII constitutes an instrument for the payment of money,
and consents and agrees that any Lender or Agent, at its sole option, in the event of a dispute by
such Guarantor in the payment of any moneys due hereunder, shall have the right to bring a
motion-action under New York CPLR Section 3213.

SECTION 7.07 Continuing Guarantee. The guarantee in this ARTICLE VII is a
continuing guarantee of payment, and shall apply to all Guaranteed Obligations whenever arising.

SECTION 7.08 General Limitation on Guarantee Obligations. In any action or proceeding
involving any state corporate limited partnership or limited liability company law, or any
applicable state, federal or foreign bankruptcy, insolvency, reorganization or other law affecting
the rights of creditors generally, if the obligations of any Guarantor under Section 7.01
would otherwise be held or determined to be void, voidable, invalid or unenforceable, or
subordinated to the claims of any other creditors, on account of the amount of its liability under
Section 7.01, then, notwithstanding any other provision to the contrary, the amount of such
liability shall, without any further action by such Guarantor, any Loan Party or any other person,
be automatically limited and reduced to the highest amount (after giving effect to the rights of
contribution established in the Contribution, Intercompany, Contracting and Offset Agreement) that
are valid and enforceable and not subordinated to the claims of other creditors as determined in
such action or proceeding.

SECTION 7.09 Release of Guarantors. If, in compliance with the terms and provisions
of the Loan Documents, Equity Interests of any Guarantor are sold or transferred such that it
ceases to be a Subsidiary (a “Transferred Guarantor”) to a person or persons, none of which is a
Loan Party or a Subsidiary, such Transferred Guarantor shall, upon the consummation of such sale or transfer,
be released from its obligations under this Agreement (including under Section 11.03
hereof) and its obligations to pledge and grant any Collateral owned by it pursuant to any Security
Document and the pledge of such Equity Interests so transferred to the Collateral Agent pursuant to
the Security Agreements shall be released, and the Collateral Agent shall take such actions as are
necessary to effect each release described in this Section 7.09 in accordance with the
relevant provisions of the Security Documents; provided that such Guarantor is also
released from its obligations under the Revolving Credit Loan Documents and other guaranteed
Material Indebtedness on the same terms.

SECTION 7.10 Certain Tax Matters. Notwithstanding the provisions of Section
2.15 if a Loan Party makes a payment hereunder that is subject to withholding tax in excess of
the withholding that would have been imposed on payments made by the Borrower with respect to whose
obligation it is making a payment, the Loan Parties shall increase the amount of such payment such
that, after deduction and payment of all such withholding taxes, the payee receives an amount equal
to the amount it would have received if no such withholding had been imposed; provided that
the Agent or Lender provides, as reasonably requested by the relevant Loan Party and as required
under Sections 2.15(e) or 2.15(g), as the case may be, such forms, certificates

 

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and documentation that it is legally entitled to furnish and would be required to reduce or eliminate
withholding and, with respect to non-U.S. withholding taxes, would not, in the Administrative
Agent’s or the relevant Lender’s reasonable judgment, subject it to any material unreimbursed costs
or otherwise be disadvantageous to it in any material respect.

SECTION 7.11 German Guarantor.

     (a) Subject to Section 7.11(b) through Section 7.11(e) below, the Secured
Parties shall not enforce the guarantee obligations of a German Guarantor existing in the form of a
German limited liability company or limited partnership with a limited liability company as partner
(GmbH or GmbH & Co. KG) under this Article VII to the extent (i) such German Guarantor
guarantees obligations of one of its shareholders or of an affiliated company (verbundenes
Unternehmen) of a shareholder within the meaning of Section 15 of the German Stock Corporation Act
(Aktiengesetz) (other than a Subsidiary of that German Guarantor or the German Guarantor itself),
and (ii) the enforcement of such guarantee for shareholder obligations would reduce, in violation
of Section 30 of the German Limited Liability Companies Act (GmbHG), the net assets (assets
minus liabilities minus provisions and liability reserves (Reinvermögen), in each
case as calculated in accordance with generally accepted accounting principles in Germany
(Grundsätze ordnungsmäßiger Buchführung) as consistently applied by such German Guarantor in
preparing its unconsolidated balance sheets (Jahresabschluss gem. § 42 GmbH — Act, §§ 242, 264
HGB) of the German Guarantor (or in the case of a GmbH & Co. KG, its general partner) to an amount
that is insufficient to maintain its (or in the case of a GmbH & Co. KG, its general partner’s)
registered share capital (Stammkapital) (or would increase an existing shortage in its net assets
below its registered share capital); provided that for the purpose of determining the
relevant registered share capital and the net assets, as the case may be:

          (i) The amount of any increase of registered share capital (Stammkapital) of such German
Guarantor (or its general partner in the form of a GmbH) implemented after the date of this
Agreement that is effected without the prior written consent of the Administrative Agent shall be
deducted from the registered share capital of the German Guarantor (or its general partner in the
form of a GmbH);

          (ii) any loans provided to the German Guarantor by a direct or indirect shareholder or an
affiliate thereof (other than a Subsidiary of such German Guarantor) shall be disregarded and not
accounted for as a liability to the extent that such loans are subordinated or are considered
subordinated under Section 32a GmbHG;

          (iii) shareholder loans, other loans and contractual obligations and liabilities incurred by
the German Guarantor in violation of the provisions of any of the Loan Documents shall be
disregarded and not accounted for as liabilities;

          (iv) any assets that are shown in the balance sheet with a book value that, in the opinion of
the Administrative Agent, is significantly lower than their market value and that are not necessary
for the business of the German Guarantor (nicht betriebsnotwendig) shall be accounted for with
their market value; and

	 	 	 
	 

	 	 

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          (v) the assets of the German Guarantor will be assessed at liquidation values
(Liquidationswerte) if, at the time the managing directors prepare the balance sheet in accordance
with paragraph (b) below and absent the demand a positive going concern prognosis (positive
Fortbestehensprognose) cannot be established.

     (b) The limitations set out in Section 7.11(a) only apply:

          (i) if and to the extent that the managing directors of the German Guarantor (or in the case
of a GmbH Co. KG, its general partner) have confirmed in writing to the Administrative Agent within
ten (10) Business Days of a demand for payment under this Article VII the amount of the
obligations under this Article VII which cannot be paid without causing the net assets of
such German Guarantor (or in the case of a GmbH Co. KG, its general partner) to fall below its
registered share capital, or increase an existing shortage in net assets below its registered share
capital (taking into account the adjustments set out above) and such confirmation is supported by a
current balance sheet and other evidence satisfactory to the Administrative Agent and neither the
Administrative Agent nor any Lender raises any objections against that confirmation within five
Business Days after its receipt; or

          (ii) if, within twenty Business Days after an objection under clause (ii) has been raised by
the Administrative Agent or a Lender, the Administrative Agent receives a written audit report
(“Auditor’s Determination”) prepared at the expense of the relevant German Guarantor by a firm of
auditors of international standing and reputation that is appointed by the German Guarantor and
reasonably acceptable to the Administrative Agent, to the extent such report identifies the amount
by which the net assets of that German Guarantor (or in the case of a GmbH & Co. KG, its general
partner in the form of a GmbH) are necessary to maintain its registered share capital as at the
date of the demand under this Article VII (taking into account the adjustments set out
above). The Auditor’s Determination shall be prepared in accordance
with generally accepted accounting principles applicable in Germany (Grundsätze
ordnungsgemäßer Buchführung) as consistently applied by the German Guarantor in the preparation of
its most recent annual balance sheet. The Auditor’s Determination shall be binding for all Parties
except for manifest error.

     (c) In any event, the Credit Parties shall be entitled to enforce the guarantee up to those
amounts that are undisputed between them and the relevant German Guarantor or determined in
accordance with Section 7.11(a) and Section 7.11(b). In respect of the exceeding
amounts, the Credit Parties shall be entitled to further pursue their claims (if any) and the
German Guarantor shall be entitled to provide that the excess amounts are necessary to maintain its
registered share capital (calculated as at the date of demand under this Article VII and
taking into account the adjustments set out above). The Secured Parties are entitled to pursue
those parts of the guarantee obligations of the German Guarantor that are not enforced by operation
of Section 7.11(a) above at any subsequent point in time. This Section 7.11 shall
apply again as of the time such additional demands are made.

     (d) Section 7.11(a) shall not apply as to the amount of Loans borrowed under this
Agreement and passed on (whether by way of shareholder loan or equity contribution) to the
respective German Guarantor or any of its Subsidiaries as long as the respective shareholder loan
is outstanding or the respective equity contribution has not been dissolved or otherwise repaid.

 

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     (e) Should it become legally permissible for managing directors of a German Guarantor to enter
into guarantees in support of obligations of their shareholders without limitations, the
limitations set forth in Section 7.11(a) shall no longer apply. Should any such guarantees
become subject to legal restrictions that are less stringent than the limitations set forth in
Section 7.11(a) above, such less stringent limitations shall apply. Otherwise, Section
7.11(a) shall remain unaffected by changes in applicable law.

SECTION 7.12 Swiss Guarantors. If and to the extent that (i) the obligations under
this ARTICLE VII of any Swiss Guarantor are for the exclusive benefit of any of such Swiss
Guarantor’s Affiliates (other than such Swiss Guarantor’s direct or indirect Subsidiaries) and (ii)
complying with the obligations under this ARTICLE VII would constitute a repayment of
capital (restitution des apports) or the payment of a (constructive) dividend (distribution de
dividende), the following shall apply:

     (a) The aggregate obligations under this ARTICLE VII of any Swiss Guarantor shall be
limited to the maximum amount of such Swiss Guarantor’s profits and reserves available for
distribution, in each case in accordance with, without limitation, articles 671 para.1 to 3 and 675
para.2 of the Swiss Code of Obligations (the “Available Amount”) at the time any Swiss Guarantor
makes a payment under this ARTICLE VII (provided such limitation is still a legal
requirement under Swiss law at that time).

     (b) Immediately after having been requested to make a payment under this ARTICLE VII
(the “Guarantee Payment”), each Swiss Guarantor shall (i) provide the Administrative Agent, within
thirty (30) Business Days from being requested to make the Guarantee Payment, with (1) an interim
audited balance sheet prepared by the statutory auditors of the applicable
Swiss Guarantor, (2) the determination of the Available Amount based on such interim audited
balance sheet as computed by the statutory auditors, and (3) a confirmation from the statutory
auditors that the Available Amount is the maximum amount which can be paid by the Swiss Guarantor
under this ARTICLE VII without breaching the provisions of Swiss corporate law, which are
aimed at protecting the share capital and legal reserves, and (ii) upon receipt of the confirmation
referred to in the preceding sentence under (3) and after having taken all actions required
pursuant to paragraph (d) below, make such Guarantee Payment in full (less, if required, any Swiss
Withholding Tax).

     (c) If so required under Swiss law (including double tax treaties to which Switzerland is a
party) at the time it is required to make a payment under this ARTICLE VII or the Security
Documents, the applicable Swiss Guarantor (1) may deduct the Swiss Withholding Tax at the rate of
35% (or such other rate as may be in force at such time) from any payment under this ARTICLE
VII or the Security Documents, (2) may pay the Swiss Withholding Tax to the Swiss Federal Tax
Administration, and (3) shall notify and provide evidence to the Administrative Agent that the
Swiss Withholding Tax has been paid to the Swiss Federal Tax Administration. To the extent the
Guarantee Payment due is less than the Available Amount, the applicable Swiss Guarantor shall be
required to make a gross-up, indemnify or otherwise hold harmless the Secured Parties for the
deduction of the Swiss Withholding Tax, it being understood that at no time shall the Guarantee
Payment (including any gross-up or indemnification payment pursuant to this paragraph (c) and
including any Swiss Withholding Tax levied thereon) exceed the Available Amount. The applicable
Swiss Guarantor shall use its best efforts to ensure that any

 

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person which is, as a result of a
payment under this ARTICLE VII, entitled to a full or partial refund of the Swiss
Withholding Tax, shall as soon as possible after the deduction of the Swiss Withholding Tax (i)
request a refund of the Swiss Withholding Tax under any applicable law (including double tax
treaties) and (ii) pay to the Administrative Agent for distribution to the applicable Secured
Parties upon receipt any amount so refunded. The Obligations will only be considered as discharged
to the extent of the effective payment received by the Secured Parties under this ARTICLE
VII. This subsection (c) is without prejudice to the gross-up or indemnification obligations of
any Guarantor other that the Swiss Guarantors.

     (d) The Swiss Guarantors shall use reasonable efforts to take and cause to be taken all and
any other action, including the passing of any shareholders’ resolutions to approve any Guarantee
Payment under this ARTICLE VII or the Security Documents, which may be required as a matter
of Swiss mandatory law or standard business practice as existing at the time it is required to make
a Guarantee Payment under this ARTICLE VII or the Security Documents in order to allow for
a prompt payment of the Guarantee Payment or Available Amount, as applicable.

SECTION 7.13 Irish Guarantor. This Guarantee does not apply to any liability to the
extent that it would result in this Guarantee constituting unlawful financial assistance within the
meaning of, in respect of any Irish Guarantor, Section 60 of the Companies Act 1963 of Ireland.

SECTION 7.14 Brazilian Guarantor. The Brazilian Guarantor waives and shall not exercise any and all rights and privileges
granted to guarantors which might otherwise be deemed applicable, including but not limited to the
rights and privileges referred to in Articles 827, 834, 835, 836, 837, 838 and 839 of the Brazilian
Civil Code and the provisions of Article 595 of the Brazilian Civil Procedure Code.

ARTICLE VIII.

EVENTS OF DEFAULT

SECTION 8.01 Events of Default. Upon the occurrence and during the continuance of the
following events (“Events of Default”):

     (a) default shall be made in the payment of any principal of any Loan when and as the same
shall become due and payable, whether at the due date thereof (including a Term Loan Repayment
Date) or at a date fixed for prepayment (whether voluntary or mandatory) thereof or by acceleration
thereof or otherwise, or a prepayment offer required under Section 2.10 shall not be made
in accordance with the terms thereof or a default shall be made in the payment of any amounts
required to be paid upon consummation of a prepayment offer required under Section 2.10;

     (b) default shall be made in the payment of any interest on any Loan or any Fee or any other
amount (other than an amount referred to in paragraph (a) above) due under any Loan Document, when
and as the same shall become due and payable, and such default shall continue unremedied for a
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     (c) any representation or warranty made or deemed made in or in connection with any Loan
Document or the borrowings hereunder, or which is contained in any certificate furnished by or on
behalf of a Loan Party pursuant to this Agreement or any other Loan Document, shall prove to have
been false or misleading in any material respect when so made or deemed made;

     (d) default shall be made in the due observance or performance by any Company of any covenant,
condition or agreement contained in Section 5.02(a), Section 5.03(a), Section
5.04(a), Section 5.04(b), Section 5.08 or ARTICLE VI);

     (e) (i) default shall be made in the due observance or performance by any Company of any
covenant, condition or agreement contained in Section 5.02 (other than Section
5.02(a)), and such default shall continue unremedied or shall not be waived for a period of
five (5) days after written notice thereof from the Administrative Agent or any Lender to
Administrative Borrower, or (ii) default shall be made in the due observance or performance by any
Company of any covenant, condition or agreement contained in any Loan Document (other than those
specified in paragraphs (a), (b), (d) or (e)(i) immediately above) and such default shall continue
unremedied or shall not be waived for a period of thirty (30) days after written notice thereof
from the Administrative Agent or any Lender to Administrative Borrower;

     (f) any Company shall (i) fail to pay any principal or interest, regardless of amount, due in
respect of any Indebtedness (other than the Obligations), when and as the same shall become due and
payable beyond any applicable grace period, or (ii) fail to observe or perform any other term,
covenant, condition or agreement contained in any agreement or instrument evidencing or governing
any such Indebtedness if the effect of any failure referred to in this clause (ii) is to cause, or
to permit (in the case of the Senior Notes only, with or without the lapse of time, but after any
notice period required thereunder has commenced) the holder or holders of such Indebtedness or a
trustee or other representative on its or their behalf to cause, such Indebtedness to become due
prior to its stated maturity or become subject to a mandatory offer purchase by the obligor;
provided that, other than in the case of the Revolving Credit Loans, it shall not
constitute an Event of Default pursuant to this paragraph (f) unless the aggregate Dollar
Equivalent amount of all such Indebtedness referred to in clauses (i) and (ii) exceeds $50 million
at any one time (provided that, in the case of Hedging Obligations, the amount counted for
this purpose shall be the net amount payable by all Companies if such Hedging Obligations were
terminated at such time);

     (g) an involuntary proceeding shall be commenced or an involuntary petition shall be filed in
a court of competent jurisdiction seeking (i) relief in respect of any Loan Party or Material
Subsidiary, or of a substantial part of the property of any Loan Party or Material Subsidiary,
under Title 11 of the U.S. Code, as now constituted or hereafter amended, or any other federal,
state or foreign bankruptcy, insolvency, receivership or similar law; (ii) the appointment of a
receiver, trustee, custodian, sequestrator, conservator, examiner or similar official for any Loan
Party or Material Subsidiary or for a substantial part of the property of any Loan Party or
Material Subsidiary; or (iii) the winding-up, liquidation or examination of any Loan Party or
Material Subsidiary; and such proceeding or petition shall continue undismissed for sixty (60) days
or an order or decree approving or ordering any of the foregoing shall be entered;

	 	 	 
	 

	 	 

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     (h) any Loan Party or Material Subsidiary shall (i) voluntarily commence any proceeding or
file any petition seeking relief under Title 11 of the United States Code, as now constituted or
hereafter amended, or any other federal, state or foreign bankruptcy, insolvency, receivership or
similar law; (ii) consent to the institution of, or fail to contest in a timely and appropriate
manner, any proceeding or the filing of any petition described in clause (g) above; (iii) apply for
or consent to the appointment of a receiver, trustee, custodian, sequestrator, conservator,
examiner or similar official for any Loan Party or Material Subsidiary or for a substantial part of
the property of any Loan Party or Material Subsidiary; (iv) file an answer admitting the material
allegations of a petition filed against it in any such proceeding; (v) make a general assignment
for the benefit of creditors; (vi) become unable, admit in writing its insolvency or inability or
fail generally to pay its debts as they become due; (vii) take any action for the purpose of
effecting any of the foregoing; (viii) wind up or liquidate (except in accordance with Section
6.05) or put into examination, (ix) take any step with a view to a moratorium or a composition
or similar arrangement with any creditors of any Loan Party or Material Subsidiary, or a moratorium
is declared or instituted in respect of the indebtedness of any Loan Party or Material Subsidiary;

     (i) one or more judgments, orders or decrees for the payment of money in an aggregate Dollar
Equivalent amount in excess of $25 million, to the extent not covered by
insurance or supported by a letter of credit or appeal bonds posted in cash, shall be rendered
against any Company or any combination thereof and the same shall remain undischarged, unvacated or
unbonded for a period of thirty (30) consecutive days during which execution shall not be
effectively stayed, or any action shall be legally taken by a judgment creditor to levy upon
properties of any Company to enforce any such judgment;

     (j) one or more ERISA Events or noncompliance with respect to Foreign Plans or Compensation
Plans shall have occurred that, when taken together with all other such ERISA Events and
noncompliance with respect to Foreign Plans or Compensation Plans that have occurred, could
reasonably be expected to result in liability of any Company and its ERISA Affiliates that could
reasonably be expected to result in a Material Adverse Effect;

     (k) any security interest and Lien purported to be created by any Security Document shall
cease to be in full force and effect, or shall cease to give the Collateral Agent, for the benefit
of the Secured Parties, a valid, perfected First Priority security interest in and Lien on all of
the Collateral thereunder (except as otherwise expressly provided in such Security Document) in
favor of the Collateral Agent, or shall be asserted by any Borrower or any other Loan Party not to
be a valid, perfected, First Priority (except as otherwise expressly provided in this Agreement,
the Intercreditor Agreement or such Security Document) security interest in or Lien on the
Collateral covered thereby;

     (l) any Loan Document or any material provisions thereof shall at any time and for any reason
be declared by a court of competent jurisdiction to be null and void, or a proceeding shall be
commenced by any Loan Party or by any Governmental Authority, seeking to establish the invalidity
or unenforceability thereof (exclusive of questions of interpretation of any provision thereof), or
any Loan Party shall repudiate or deny any portion of its liability or obligation for the
Obligations;

	 	 	 
	 

	 	 

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     (m) there shall have occurred a Change in Control;

     (n) the Intercreditor Agreement or any material provision thereof shall cease to be in full
force or effect other than (i) as expressly permitted hereunder or thereunder, (ii) by a consensual
termination or modification thereof agreed to by the Agents party thereto and the Revolving Credit
Agents party thereto, or (iii) as a result of satisfaction in full of the obligations under the
Revolving Credit Loan Documents; or

     (o) any Company shall be prohibited or otherwise restrained from conducting the business
theretofore conducted by it in any manner that has or could reasonably be expected to result in a
Material Adverse Effect by virtue of any determination, ruling, decision, decree or order of any
court or Governmental Authority of competent jurisdiction;

then, and in every such event (other than an event with respect to any Loan Party described in
paragraph (g) or (h) above), and at any time thereafter during the continuance of such event or an
acceleration of all obligations under the Revolving Credit Agreement, the Administrative Agent may,
and at the request of the Required Lenders shall, by notice to Administrative Borrower, take either
or both of the following actions, at the same or different times: (i) terminate forthwith the
Commitments and (ii) declare the Loans then outstanding to be forthwith due and payable in
whole or in part, whereupon the principal of the Loans so declared to be due and payable, together
with accrued interest thereon and any unpaid accrued Fees and all other Obligations of the Loan
Parties accrued hereunder and under any other Loan Document, shall become forthwith due and
payable, without presentment, demand, protest or any other notice of any kind, all of which are
hereby expressly waived by each of the Loan Parties, anything contained herein or in any other Loan
Document to the contrary notwithstanding; and in any event, with respect to any Loan Party
described in paragraph (g) or (h) above, the Commitments shall automatically terminate and the
principal of the Loans then outstanding, together with accrued interest thereon and any unpaid
accrued Fees and all other Obligations of the Loan Parties accrued hereunder and under any other
Loan Document, shall automatically become due and payable, without presentment, demand, protest or
any other notice of any kind, all of which are hereby expressly waived by each of the Loan Parties,
anything contained herein or in any other Loan Document to the contrary notwithstanding.

SECTION
8.02 Rescission. If at any time after termination of the Commitments or
acceleration of the maturity of the Loans, the Loan Parties shall pay all arrears of interest and
all payments on account of principal of the Loans owing by them that shall have become due
otherwise than by acceleration (with interest on principal and, to the extent permitted by law, on
overdue interest, at the rates specified herein) and all Defaults (other than non-payment of
principal of and accrued interest on the Loans due and payable solely by virtue of acceleration)
shall be remedied or waived pursuant Section 11.02, then upon the written consent of the
Required Lenders and written notice to Administrative Borrower, the termination of the Commitments
or the acceleration and their consequences may be rescinded and annulled; but such action shall not
affect any subsequent Default or impair any right or remedy consequent thereon. The provisions of
the preceding sentence are intended merely to bind the Lenders to a decision that may be made at
the election of the Required Lenders, and such provisions are not intended to benefit any Loan
Party and do not give any Loan Party the right to require the

 

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Lenders to rescind or annul any
acceleration hereunder, even if the conditions set forth herein are met.

SECTION
8.03 Application of Proceeds. Subject to the terms of the Intercreditor
Agreement, the proceeds received by any of the Agents in respect of any sale of, collection from or
other realization upon all or any part of the Collateral, whether pursuant to the exercise by the
Collateral Agent of its remedies or otherwise (including any payments received with respect to
adequate protection payments or other distributions relating to the Obligations during the pendency
of any reorganization or insolvency proceeding) after an Event of Default has occurred and is
continuing or after the acceleration of the Obligations, shall be applied, in full or in part,
together with any other sums then held by the Agents or any Receiver pursuant to this Agreement,
promptly by the Agents or any Receiver as follows:

     (a) First, to the payment of all reasonable costs and expenses, fees, commissions and taxes of
such sale, collection or other realization including compensation to the Agents or any Receiver and
their agents and counsel, and all expenses, liabilities and advances made or incurred by the Agents
or any Receiver in connection therewith and all amounts for which the
Agents or any Receiver are entitled to indemnification pursuant to the provisions of any Loan
Document, together with interest on each such amount at the highest rate then in effect under this
Agreement from and after the date such amount is due, owing or unpaid until paid in full;

     (b) Second, to the payment of all other reasonable costs and expenses of such sale, collection
or other realization including any compensation payable to the other Secured Parties and their
agents and counsel and all costs, liabilities and advances made or incurred by the other Secured
Parties in connection therewith, together with interest on each such amount at the highest rate
then in effect under this Agreement from and after the date such amount is due, owing or unpaid
until paid in full;

     (c) Third, without duplication of amounts applied pursuant to clauses (a) and (b) above, to
the indefeasible payment in full in cash, pro rata, of interest and other amounts constituting
Obligations which are then due and owing (other than principal) and any fees, premiums and
scheduled periodic payments due under Hedging Agreements constituting Secured Obligations and any
interest accrued thereon, in each case equally and ratably in accordance with the respective
amounts thereof then due and owing;

     (d) Fourth,
to the indefeasible payment in full in cash, pro rata, of the principal amount of
the Obligations and any premium thereon and any breakage, termination or other payments under
Hedging Agreements constituting Secured Obligations and any interest accrued thereon and any
remaining Secured Obligations; and

     (e) Fifth, the balance, if any, to the person lawfully entitled thereto (including the
applicable Loan Party or its successors or assigns) or as a court of competent jurisdiction may
direct.

     In the event that any such proceeds are insufficient to pay in full the items described in
clauses (a) through (d) of this Section 8.03, the Loan Parties shall remain liable, jointly
and severally, for any deficiency. Notwithstanding any other provision of this Agreement, after

 

142

 

application pursuant to clauses (a) and (b) of this Section 8.03, any remaining proceeds of
any of the 525 Collateral Accounts shall be applied to the indefeasible payment in full in cash,
pro rata of the principal amount of any outstanding Canadian Term Loans which were not prepaid with
amounts in such accounts as a result of Section 2.10(h)(vi) and any accrued and unpaid
interest thereon, and thereafter, any remaining proceeds of the 525 Collateral Accounts shall be
applied in the priority set forth in clauses (c) through (e) of this Section 8.03.

ARTICLE IX.

[INTENTIONALLY OMITTED]

ARTICLE X.

THE ADMINISTRATIVE AGENT AND THE COLLATERAL AGENT

SECTION 10.01 Appointment and Authority. Each of the Lenders hereby irrevocably appoints UBS AG, Stamford Branch, to act on its
behalf as the Administrative Agent and the Collateral Agent hereunder and under the other Loan
Documents and authorizes such Agents to take such actions on its behalf and to exercise such powers
as are delegated to such Agents by the terms hereof or thereof, together with such actions and
powers as are reasonably incidental thereto. The provisions of this Article are solely for the
benefit of the Administrative Agent, the Collateral Agent, the other Agents and the Lenders, and
neither Borrowers nor any other Loan Party shall have rights as a third party beneficiary of any of
such provisions.

SECTION 10.02 Rights as a Lender. Each person serving as an Agent hereunder shall
have the same rights and powers in its capacity as a Lender as any other Lender and may exercise
the same as though it were not an Agent and the term “Lender” or “Lenders” shall, unless otherwise
expressly indicated or unless the context otherwise requires, include each person serving as an
Agent hereunder in its individual capacity. Such person and its Affiliates may accept deposits
from, lend money to, act as the financial advisor or in any other advisory capacity for and
generally engage in any kind of business with any Borrower or other Loan Party, or any Subsidiary
or other Affiliate thereof, as if such person were not an Agent hereunder and without any duty to
account therefor to the Lenders.

SECTION 10.03 Exculpatory Provisions.

     (a) No Agent shall have any duties or obligations except those expressly set forth herein and
in the other Loan Documents. Without limiting the generality of the foregoing, no Agent:

          (i) shall be subject to any fiduciary or other implied duties, regardless of whether a Default
has occurred and is continuing;

          (ii) shall have any duty to take any discretionary action or exercise any discretionary
powers, except discretionary rights and powers expressly contemplated hereby or by the other Loan
Documents that such Agent is required to exercise as directed in writing by the Required Lenders
(or such other number or percentage of the Lenders as shall be expressly provided for herein or in
the other Loan Documents); provided that such Agent shall not be

 

143

 

required to take any action that, in its judgment or the judgment of its counsel, may expose such Agent to liability or
that is contrary to any Loan Document or applicable Requirements of Law; and

          (iii) shall, except as expressly set forth herein and in the other Loan Documents, have any
duty to disclose, and shall not be liable for the failure to disclose, any information relating to
any Borrower or other Loan Party or any of its Affiliates that is communicated to or obtained by
the person serving as such Agent or any of its Affiliates in any capacity.

     (b) No Agent shall be liable for any action taken or not taken by it (x) with the consent or
at the request of the Required Lenders (or such other number or percentage of the Lenders as shall
be necessary, or as such Agent shall believe in good faith shall be necessary,
under the circumstances as provided in Section 11.02) or (y) in the absence of its own
gross negligence or willful misconduct. No Agent shall be deemed to have knowledge of any Default
unless and until notice describing such Default is given to such Agent by Administrative Borrower
or a Lender.

     (c) No Agent shall be responsible for or have any duty to ascertain or inquire into (i) any
statement, warranty or representation made in or in connection with this Agreement or any other
Loan Document, (ii) the contents of any certificate, report or other document delivered hereunder
or thereunder or in connection herewith or therewith, (iii) the performance or observance of any of
the covenants, agreements or other terms or conditions set forth herein or therein or the
occurrence of any Default, (iv) the validity, enforceability, effectiveness or genuineness of this
Agreement, any other Loan Document or any other agreement, instrument or document or (v) the
satisfaction of any condition set forth in ARTICLE IV or elsewhere herein, other than to
confirm receipt of items expressly required to be delivered to such Agent. Without limiting the
generality of the foregoing, the use of the term “agent” in this Agreement with reference to the
Administrative Agent or the Collateral Agent is not intended to connote any fiduciary or other
implied (or express) obligations arising under agency doctrine of any applicable law. Instead,
such term us used merely as a matter of market custom and is intended to create or reflect only an
administrative relationship between independent contracting parties.

SECTION 10.04 Reliance by Agent. Each Agent shall be entitled to rely upon, and shall
not incur any liability for relying upon, any notice, request, certificate, consent, statement,
instrument, document or other writing (including any electronic message, Internet or intranet
website posting or other distribution) believed by it to be genuine and to have been signed, sent
or otherwise authenticated by the proper person. Each Agent also may rely upon any statement made
to it orally or by telephone and believed by it to have been made by the proper person, and shall
not incur any liability for relying thereon. In determining compliance with any condition
hereunder to the making of a Loan that by its terms must be fulfilled to the satisfaction of a
Lender, the Administrative Agent may presume that such condition is satisfactory to such Lender
unless the Administrative Agent shall have received notice to the contrary from such Lender prior
to the making of such Loan. Each Agent may consult with legal counsel (who may be counsel for any
Borrower or other Loan Party), independent accountants and other experts selected by it, and shall
not be liable for any action taken or not taken by it in accordance with the advice of any such
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SECTION 10.05 Delegation of Duties. Each Agent may perform any and all of its duties
and exercise its rights and powers hereunder or under any other Loan Document by or through, or
delegate any and all such rights and powers to, any one or more sub-agents appointed by such Agent,
including a sub-agent which is a non-U.S. affiliate of such Agent. Each Agent and any such
sub-agent may perform any and all of its duties and exercise its rights and powers by or through
their respective Related Parties. The exculpatory provisions of this Article shall apply to any
such sub-agent and to the Related Parties of each Agent and any such sub-agent, and shall apply to
their respective activities in connection with the syndication of the credit facilities provided for herein as
well as activities as Agent.

SECTION 10.06 Resignation of Agent. Each Agent may at any time give notice of its
resignation to the Lenders and Administrative Borrower. Upon receipt of any such notice of
resignation, the Required Lenders shall have the right, in consultation with Administrative
Borrower, to appoint a successor, which (i) shall be a bank with an office in the United States, or
an Affiliate of any such bank with an office in the United States and (ii) for the Administrative
Agent, shall be a commercial bank or other financial institution having assets in excess of $1,000
million. If no such successor shall have been so appointed by the Required Lenders and shall have
accepted such appointment within thirty (30) days after the retiring Agent gives notice of its
resignation, then the retiring Agent may on behalf of the Lenders, appoint a successor Agent
meeting the qualifications set forth above provided that if the Agent shall notify Administrative
Borrower and the Lenders that no qualifying person has accepted such appointment, then such
resignation shall nonetheless become effective in accordance with such notice and (1) the retiring
Agent shall be discharged from its duties and obligations hereunder and under the other Loan
Documents (except that in the case of any collateral security held by the Collateral Agent on
behalf of the Lenders under any of the Loan Documents, the retiring Collateral Agent shall continue
to hold such collateral security as nominee until such time as a successor Collateral Agent is
appointed) and (2) all payments, communications and determinations provided to be made by, to or
through an Agent shall instead be made by or to each Lender directly, until such time as the
Required Lenders appoint a successor Agent as provided for above in this paragraph. Upon the
acceptance of a successor’s appointment as Agent hereunder, such successor shall succeed to and
become vested with all of the rights, powers, privileges and duties of the retiring (or retired)
Agent, and the retiring Agent shall be discharged from all of its duties and obligations hereunder
or under the other Loan Documents (if not already discharged therefrom as provided above in this
paragraph). The fees payable by the Borrowers to a successor Agent shall be the same as those
payable to its predecessor unless otherwise agreed between the Borrowers and such successor. After
the retiring Agent’s resignation hereunder and under the other Loan Documents, the provisions of
this ARTICLE X and Section 11.03 shall continue in effect for the benefit of such
retiring Agent, its sub-agents and their respective Related Parties in respect of any actions taken
or omitted to be taken by any of them while the retiring Agent was acting as Agent.

SECTION 10.07 Non-Reliance on Agent and Other Lenders. Each Lender acknowledges that
it has, independently and without reliance upon any Agent or any other Lender and based on such
documents and information as it has deemed appropriate, made its own credit analysis and decision
to enter into this Agreement. Each Lender further represents and warrants that it has reviewed the
Confidential Information Memorandum and each other document made available to it on the Platform in
connection with this Agreement and has

 

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acknowledged and accepted the terms and conditions applicable to the recipients thereof. Each Lender also acknowledges that it will, independently
and without reliance upon any Agent or any other Lender and based on such documents and information
as it shall from time to time deem appropriate, continue to make its own decisions in taking or not
taking action under or based upon this Agreement, any other Loan Document or any related agreement or any document
furnished hereunder or thereunder.

SECTION 10.08 No Other Duties, etc. Notwithstanding anything to the contrary
contained herein, none of the Joint Bookmanagers, Joint Lead Arrangers, Syndication Agent, or
Documentation Agent listed on the cover page hereof shall have any powers, duties or
responsibilities under this Agreement or any of the other Loan Documents, except in its capacity,
as applicable, as the Administrative Agent, as the Collateral Agent or as a Lender hereunder.

SECTION 10.09 Indemnification. The Lenders severally agree to indemnify each Agent in
its capacity as such (to the extent not reimbursed by the Borrowers or the Guarantors and without
limiting the obligation of the Borrowers or the Guarantors to do so), ratably according to their
respective outstanding Loans and Commitments in effect on the date on which indemnification is
sought under this Section 10.09 (or, if indemnification is sought after the date upon which
all Commitments shall have terminated and the Loans shall have been paid in full, ratably in
accordance with such outstanding Loans and Commitments as in effect immediately prior to such
date), from and against any and all liabilities, obligations, losses, damages, penalties, actions,
judgments, suits, costs, expenses or disbursements of any kind whatsoever that may at any time
(whether before or after the payment of the Loans) be imposed on, incurred by or asserted against
such Agent in any way relating to or arising out of, the Commitments, this Agreement, any of the
other Loan Documents or any documents contemplated by or referred to herein or therein or the
transactions contemplated hereby or thereby or any action taken or omitted by such Agent under or
in connection with any of the foregoing; provided, that no Lender shall be liable for the
payment of any portion of such liabilities, obligations, losses, damages, penalties, actions,
judgments, suits, costs, expenses or disbursements that are found by a final and nonappealable
decision of a court of competent jurisdiction to have resulted from such Agent’s gross negligence
or willful misconduct. The agreements in this Section 10.09 shall survive the payment of
the Loans and all other amounts payable hereunder.

SECTION 10.10 [INTENTIONALLY OMITTED].

SECTION 10.11 Concerning the Collateral and the Related Loan Documents. Each Lender
authorizes and directs Agents to enter into this Agreement and the other Loan Documents, including
the Intercreditor Agreement. Each Lender agrees that any action taken by Agents or Required
Lenders in accordance with the terms of this Agreement or the other Loan Documents, including the
Intercreditor Agreement, and the exercise by Agents or Required Lenders of their respective powers
set forth therein or herein, together with such other powers that are reasonably incidental
thereto, shall be binding upon all of the Lenders.

SECTION 10.12 Release. Each Lender and each Issuer hereby releases each Agent acting on its behalf pursuant to the
terms of this Agreement or any other Loan Document from the restrictions of Section 181 of the
German Civil Code (Bürgerliches Gesetzbuch) (restriction on self-dealing).

 

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SECTION 10.13 Acknowledgment of Security Trust Deed. Each Lender acknowledges the
terms of the Security Trust Deed and, in particular, the terms, basis and limitation on which the
Collateral Agent holds the “Transaction Security” (as defined therein) and specifically agrees and
accepts (i) such terms, basis and limitation; (ii) that the Collateral Agent shall, as trustee,
have only those duties, obligations and responsibilities expressly specified in the Security Trust
Deed; (iii) the limitation and exclusion of the Collateral Agent’s liability as set out therein;
and (iv) all other provisions of the Security Trust Deed as if it were a party thereto.

ARTICLE XI.

MISCELLANEOUS

SECTION 11.01 Notices.

     (a) Generally. Except in the case of notices and other communications expressly
permitted to be given by telephone (and except as provided in paragraph (b) below), all notices and
other communications provided for herein shall be in writing and shall be delivered by hand or
overnight courier service, mailed by certified or registered mail or sent by telecopier as follows:

(i) if to any Loan Party, to Administrative Borrower at:

Novelis Inc.

3399 Peachtree Road NE, Suite 1500

Atlanta, GA 30326

Attention: Orville Lunking, Treasurer

Telecopier No.: 404-814-4200

Email: orville.lunking@novelis.com

with a copy to:

Novelis Inc.

3399 Peachtree Road NE, Suite 1500

Atlanta, GA 30326

Attention: Leslie J. Parrette, Jr.

Telecopier No.: 404-814-4272

Email: les.parrette@novelis.com

(ii) if to a Lender, to it at its address (or telecopier number) set forth in its
Administrative Questionnaire; and

 

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(iii) if to the Administrative Agent or the Collateral Agent, to it at:

UBS AG, Stamford Branch

677 Washington Boulevard

Stamford, Connecticut 06901

Attention: Christopher Gomes

Telecopier No.: (203) 719-3180

Email: Christopher.Gomes@UBS.com

with a copy to:

Skadden, Arps, Slate, Meagher & Flom LLP

300 South Grand Avenue

Los Angeles, CA 90071

Attention: David C. Reamer

Telecopier No.: (213) 687-5600

Phone No.: (213) 687-5000

Notices sent by hand or overnight courier service, or mailed by certified or registered mail, shall
be deemed to have been given when received; notices sent by telecopier shall be deemed to have been
given when sent (except that, if not given during normal business hours for the recipient, shall be
deemed to have been given at the opening of business on the next Business Day for the recipient).
Notices delivered through electronic communications to the extent provided in paragraph (b) below,
shall be effective as provided in said paragraph (b).

     (b) Electronic Communications. Notices and other communications to the Lenders
hereunder may (subject to Section 11.01(d)) be delivered or furnished by electronic
communication (including e-mail and Internet or intranet websites) pursuant to procedures approved
by the Administrative Agent; provided that the foregoing shall not apply to notices to any
Lender pursuant to ARTICLE II if such Lender, as applicable, has notified the
Administrative Agent that it is incapable of receiving notices under such Article by electronic
communication. The Administrative Agent, the Collateral Agent or Administrative Borrower may, in
its discretion, agree to accept notices and other communications to it hereunder by electronic
communications pursuant to procedures approved by it (including as set forth in Section
11.01(d)); provided that approval of such procedures may be limited to particular
notices or communications.

     Unless the Administrative Agent otherwise prescribes, (i) notices and other communications
sent to an e-mail address shall be deemed received upon the sender’s receipt of an acknowledgement
from the intended recipient (such as by the “return receipt requested” function, as available,
return e-mail or other written acknowledgement); provided that if such notice or other
communication is not sent during the normal business hours of the recipient, such notice or
communication shall be deemed to have been sent at the opening of business on the next business day
for the recipient, and (ii) notices or communications posted to an Internet or intranet website
shall be deemed received upon the deemed receipt by the intended recipient at its e-mail address as
described in the foregoing clause (i) of notification that such notice or communication is
available and identifying the website address therefor.

 

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     (c) Change of Address, Etc. Any party hereto may change its address or telecopier
number for notices and other communications hereunder by notice to the other parties hereto.

     (d) Posting. Each Loan Party hereby agrees that it will provide to the
Administrative Agent all information, documents and other materials that it is obligated to furnish
to the Administrative Agent pursuant to this Agreement and any other Loan Document, including all
notices, requests, financial statements, financial and other reports, certificates and other
information materials, but excluding any such communication that (i) relates to a request for a
new, or a conversion of an existing, Borrowing or other extension of credit (including any election
of an interest rate or interest period relating thereto), (ii) relates to the payment of any
principal or other amount due under this Agreement prior to the scheduled date therefor, (iii)
provides notice of any Default under this Agreement or (iv) is required to be delivered to satisfy
any condition precedent to the effectiveness of this Agreement and/or any borrowing or other
extension of credit hereunder (all such non-excluded communications, collectively, the
“Communications”), by transmitting the Communications in an electronic/soft medium in a format
reasonably acceptable to the Administrative Agent at Christopher.Gomes@UBS.com or at such other
e-mail address(es) provided to Administrative Borrower from time to time or in such other form,
including hard copy delivery thereof, as the Administrative Agent shall reasonably require.
Nothing in this Section 11.01(d) shall prejudice the right of the Agents, any Lender or any
Loan Party to give any notice or other communication pursuant to this Agreement or any other Loan
Document in any other manner specified in this Agreement or any other Loan Document.

     To the extent consented to by the Administrative Agent from time to time, Administrative Agent
agrees that receipt of the Communications by the Administrative Agent at its e-mail address(es) set
forth above shall constitute effective delivery of the Communications to the Administrative Agent
for purposes of the Loan Documents; provided that the Administrative Borrower shall also
deliver to the Administrative Agent an executed original of each Compliance Certificate and an
executed copy (which may be by pdf or similar electronic transmission) of each notice or request of
the type described in clauses (i) through (iv) of paragraph (d) above required to be delivered
hereunder.

     Each Loan Party further agrees that Administrative Agent may make the Communications available
to the Lenders by posting the Communications on Intralinks or a substantially similar electronic
transmission system (the “Platform”). The Platform is provided “as is” and “as available.” The
Agents do not warrant the accuracy or completeness of the Communications, or the adequacy of the
Platform and expressly disclaim liability for errors or omissions in the communications. No
warranty of any kind, express, implied or statutory, including, without limitation, any warranty of
merchantability, fitness for a particular purpose, non-infringement of third party rights or
freedom from viruses or other code defects, is made by any Agent in connection with the
Communications or the Platform. In no event shall the Administrative Agent or any of its Related
Parties have any liability to the Loan Parties, any Lender or any other person for damages of any
kind, including direct or indirect, special, incidental or consequential damages, losses or
expenses (whether in tort, contract or otherwise) arising out of any Loan Party’s or the
Administrative Agent’s transmission of communications through the Internet, except to the extent
the liability of such person is found in a final non-

 

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appealable judgment by a court of competent jurisdiction to have resulted from such person’s
gross negligence or willful misconduct.

SECTION 11.02 Waivers; Amendment.

     (a) Generally. No failure or delay by any Agent or any Lender in exercising any right
or power hereunder or under any other Loan Document shall operate as a waiver thereof, nor shall
any single or partial exercise of any such right or power, or any abandonment or discontinuance of
steps to enforce such a right or power, preclude any other or further exercise thereof or the
exercise of any other right or power. The rights and remedies of each Agent and the Lenders
hereunder and under the other Loan Documents are cumulative and are not exclusive of any rights or
remedies that they would otherwise have. No waiver of any provision of any Loan Document or
consent to any departure by any Loan Party therefrom shall in any event be effective unless the
same shall be permitted by this Section 11.02, and then such waiver or consent shall be
effective only in the specific instance and for the purpose for which given. Without limiting the
generality of the foregoing, the making of a Loan shall not be construed as a waiver of any
Default, regardless of whether any Agent or any Lender may have had notice or knowledge of such
Default at the time. No notice or demand on any Loan Party in any case shall entitle any Loan
Party to any other or further notice or demand in similar or other circumstances.

     (b) Required Consents. Subject to the terms of the Intercreditor Agreement and to
Section 11.02(c) and (d), neither this Agreement nor any other Loan Document nor
any provision hereof or thereof may be waived, amended, supplemented or modified except, in the
case of this Agreement, pursuant to an agreement or agreements in writing entered into by the
Borrowers and the Required Lenders (or by the Administrative Agent with the written consent of the
Required Lenders) or, in the case of any other Loan Document, pursuant to an agreement or
agreements in writing entered into by the Administrative Agent (or, in the case of any applicable
Security Document, the Collateral Agent) and the Loan Party or Loan Parties that are party thereto,
in each case with the written consent of the Required Lenders; provided that no such
agreement shall be effective if the effect thereof would:

          (i) increase the Commitment of any Lender without the written consent of such Lender (it being
understood that no amendment, modification, termination, waiver or consent with respect to any
condition precedent, covenant or Default shall constitute an increase in the Commitment of any
Lender);

          (ii) reduce the principal amount of any Loan or reduce the rate of interest thereon (other
than interest pursuant to Section 2.06(c)), or reduce any Fees payable hereunder, or change
the form or currency of payment of any Obligation, without the written consent of each Lender
directly affected thereby;

          (iii) (A) change the scheduled final maturity of any Loan, or any scheduled date of payment of
or the installment otherwise due on the principal amount of any Loan under Section 2.09,
(B) postpone the date for payment of any interest or fees payable hereunder, (C) change the amount
of, waive or excuse any such payment (other than waiver of any increase in
the interest rate pursuant to Section 2.06(c)), or (D) postpone the scheduled date of
expiration of any Commitment without the written consent of each Lender directly affected thereby;

 

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          (iv) increase the maximum duration of Interest Periods hereunder, without the written consent
of each Lender directly affected thereby;

          (v) permit the assignment or delegation by any Borrower of any of its rights or obligations
under any Loan Document, without the written consent of each Lender;

          (vi) except pursuant to the Intercreditor Agreement, release Holdings or all or substantially
all of the Subsidiary Guarantors from their Guarantees (except as expressly provided in this
Agreement or as otherwise expressly provided by any such Guarantee), or limit their liability in
respect of such Guarantees, without the written consent of each Lender;

          (vii) except pursuant to the Intercreditor Agreement or the express terms hereof, release all
or a substantial portion of the Collateral from the Liens of the Security Documents or alter the
relative priorities of a material portion of the Secured Obligations entitled to the Liens of the
Security Documents, in each case without the written consent of each Lender (it being understood
that additional Loans or Classes of Loans consented to by the Required Lenders and additional Loans
pursuant to Section 2.23 may be equally and ratably secured by the Collateral with the then
existing Secured Obligations under the Security Documents);

          (viii) change Section 2.14(b), (c) or (d) in a manner that would alter
the pro rata sharing of payments or setoffs required thereby or any other provision in a manner
that would alter the pro rata allocation among the Lenders of Loan disbursements, including the
requirements of Section 2.02(a), without the written consent of each Lender directly
affected thereby (it being understood that additional Loans or Classes of Loans consented to by the
Required Lenders and additional Loans pursuant to Section 2.23 may be equally and ratably
secured by the Collateral with the then existing Secured Obligations under the Security Documents
and may share payments and setoffs ratably with other Loans);

          (ix) change any provision of this Section 11.02(b), (c), or (d),
without the written consent of each Lender directly affected thereby (except for additional
restrictions on amendments or waivers for the benefit of Lenders of additional Loans or Classes of
Loans consented to by the Required Lenders and additional Loans pursuant to Section 2.23);

          (x) change the percentage set forth in the definition of “Required Lenders” or any other
provision of any Loan Document (including this Section) specifying the number or percentage of
Lenders (or Lenders of any Class) required to waive, amend or modify any rights thereunder or make
any determination or grant any consent thereunder, without the written consent of each Lender (or
each Lender of such Class, as the case may be), other than to increase such percentage or number or
to give any additional Lender or group of Lenders such right to waive, amend or modify or make any
such determination or grant any such consent;

          (xi) change the application of payments as among or between Classes under Section
2.10(h), (i) or (j) or Section 8.03 without the written consent of the
Required Class Lenders of each Class that is being allocated a lesser prepayment as a result
thereof (it being understood that the Required Lenders may waive, in whole or in part, any
prepayment so long as the application, as between Classes, of any portion of such prepayment that is still required
to be made is not changed and, if additional Loans or Classes of Loans under this Agreement

 

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consented to by the Required Lenders or additional Loans pursuant to Section 2.23 are made,
such new Loans may be included on a pro rata basis in the various payments required pursuant to
Section 2.10(h), (i) and (j) and Section 8.03); or

          (xii) change or waive any provision of ARTICLE X as the same applies to any Agent, or
any other provision hereof as the same applies to the rights or obligations of any Agent, in each
case without the written consent of such Agent;

provided, further, that

     (1) any waiver, amendment or modification prior to the completion of the primary
syndication of the Commitments and Loans (as determined by the Arrangers) may not be
effected without the written consent of the Arrangers; and

     (2) any waiver, amendment or modification of the Intercreditor Agreement (and any
related definitions) may be effected by an agreement or agreements in writing entered into
among the Collateral Agent, the Administrative Agent, the Revolving Credit Collateral Agent,
the Revolving Credit Funding Agent and the Revolving Credit Canadian Administrative Agent
(in each case, with the consent of the Required Lenders but without the consent of any Loan
Party, so long as such amendment, waiver or modification does not impose any additional
duties or obligations on the Loan Parties or alter or impair any right of any Loan Party
under the Loan Documents).

     (c) Collateral. Without the consent of any other person, the applicable Loan Party or
Parties and the Administrative Agent and/or Collateral Agent may (in its or their respective sole
discretion, or shall, to the extent required by any Loan Document) enter into any amendment or
waiver of any Loan Document, or enter into any new agreement or instrument, to effect the granting,
perfection, protection, expansion or enhancement of any security interest in any Collateral or
additional property to become Collateral for the benefit of the Secured Parties, or as required by
local law to give effect to, or protect any security interest for the benefit of the Secured
Parties, in any property or so that the security interests therein comply with applicable
Requirements of Law.

     (d) Dissenting Lenders. If, in connection with any proposed change, waiver, discharge
or termination of the provisions of this Agreement as contemplated by Section 11.02(b), the
consent of the Required Lenders is obtained but the consent of one or more of such other Lenders
whose consent is required is not obtained, then the Borrowers shall have the right, upon notice by
Administrative Borrower to such Lender and the Administrative Agent, to replace all, but not less
than all, of such non-consenting Lender or Lenders (so long as all non-consenting Lenders are so
replaced) with one or more persons pursuant to Section 2.16 so long as at the time of such
replacement each such new Lender consents to the proposed change, waiver, discharge or termination.
Each Lender agrees that, if the Borrowers elect to replace such Lender in accordance with this
Section, it shall promptly execute and deliver to the Administrative Agent an Assignment and
Assumption to evidence such sale and purchase and shall deliver to the Administrative Agent any
Note (if Notes have been issued in respect of such Lender’s Loans)
subject to such Assignment and Assumption; provided that the failure of any such
non-consenting Lender to execute an Assignment and Assumption shall not render such sale and

 

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purchase (and the corresponding assignment) invalid and such assignment shall be recorded in the
Register.

     (e) Holdings Amalgamation and Increased Commitments. Notwithstanding the foregoing,
the Administrative Agent and the Borrowers (without the consent of any Lenders) may amend or amend
and restate this Agreement and the other Loan Documents if necessary or advisable in connection
with or to effectuate (i) the Permitted Holdings Amalgamation and (ii) any additional Loans
contemplated by Section 2.23.

SECTION 11.03 Expenses; Indemnity; Damage Waiver.

     (a) Costs and Expenses. Administrative Borrower shall pay or cause the applicable
Loan Party to pay (i) all reasonable out-of-pocket expenses incurred by the Administrative Agent,
the Collateral Agent, the Arrangers, and their respective Affiliates (including the reasonable
fees, charges and disbursements of counsel for the Administrative Agent, and/or the Collateral
Agent, expenses incurred in connection with due diligence, inventory appraisal and collateral audit
and reporting fees, travel, courier, reproduction, printing and delivery expenses, and the
obtaining and maintaining of CUSIP numbers for the Loans) in connection with the syndication of the
credit facilities provided for herein, the preparation, negotiation, execution, delivery and
administration of this Agreement and the other Loan Documents, or in connection with any amendment,
amendment and restatement, modification or waiver of the provisions hereof or thereof (whether or
not the transactions contemplated hereby or thereby shall be consummated), including in connection
with post-closing searches to confirm that security filings and recordations have been properly
made, (ii) all out-of-pocket expenses incurred by the Administrative Agent, the Collateral Agent,
any Lender or any Receiver (including the fees, charges and disbursements of any counsel for the
Administrative Agent, the Collateral Agent, any Lender or any Receiver), in connection with the
enforcement or protection of its rights (A) in connection with this Agreement and the other Loan
Documents, including its rights under this Section 11.03, (B) in enforcing, preserving and
protecting, or attempting to enforce, preserve or protect its interests in the Collateral or (C) in
connection with the Loans issued hereunder, including all such out-of-pocket expenses incurred
during any workout, restructuring or negotiations in respect of such Loans and (iv) all documentary
and similar taxes and charges in respect of the Loan Documents.

     (b) Indemnification by Borrower. Each Loan Party shall indemnify the Administrative
Agent (and any sub-agent thereof), the Collateral Agent (and any sub-agent thereof), each Lender
and Receiver, and each Related Party of any of the foregoing persons (each such person being called
an “Indemnitee”) against, and hold each Indemnitee harmless from, any and all reasonable
out-of-pocket losses, claims, damages, liabilities and related expenses (including the reasonable
fees, charges and disbursements of any counsel for any Indemnitee) incurred by any Indemnitee or
asserted against any Indemnitee by any third party or by any Borrower or any other Loan Party
arising out of, in connection with, or as a result of (i) the execution or delivery of this
Agreement, any other Loan Document, or any amendment,
amendment and restatement, modification or waiver of the provisions hereof or thereof, or any
agreement or instrument contemplated hereby or thereby, the performance by the parties hereto of
their respective obligations hereunder or thereunder or the consummation of the transactions
contemplated hereby or thereby, (ii) any Loan or the use or proposed use of the proceeds

 

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therefrom,
(iii) any actual or alleged presence or Release or threatened Release of Hazardous Materials on,
at, under or from any property owned, leased or operated by any Company at any time, or any
Environmental Claim related in any way to any Company, or (iv) any actual or prospective claim,
litigation, investigation or proceeding relating to any of the foregoing, whether based on
contract, tort or any other theory, whether brought by a third party or by any Borrower or any
other Loan Party, and regardless of whether any Indemnitee is a party thereto; provided
that such indemnity shall not, as to any Indemnitee, be available to the extent that such losses,
claims, damages, liabilities or related expenses (x) are determined by a court of competent
jurisdiction by final and nonappealable judgment to have resulted from the gross negligence or
willful misconduct of such Indemnitee or (y) result from a claim brought by any Borrower or any
other Loan Party against an Indemnitee for breach in bad faith of such Indemnitee’s obligations
hereunder or under any other Loan Document, if such Borrower or such Loan Party has obtained a
final and nonappealable judgment in its favor on such claim as determined by a court of competent
jurisdiction. WITHOUT LIMITATION OF THE FOREGOING, IT IS THE INTENTION OF THE LOAN PARTIES, AND
THE LOAN PARTIES AGREE, THAT THE FOREGOING INDEMNITIES SHALL APPLY TO EACH INDEMNITEE WITH RESPECT
TO LOSSES, CLAIMS, DAMAGES, PENALTIES, LIABILITIES AND RELATED EXPENSES (INCLUDING, WITHOUT
LIMITATION, ALL EXPENSES OF LITIGATION OR PREPARATION THEREFOR), WHICH IN WHOLE OR IN PART ARE
CAUSED BY OR ARISE OUT OF THE NEGLIGENCE OF SUCH (AND/OR ANY OTHER) INDEMNITEE.

     (c) Reimbursement by Lenders. To the extent that any Loan Party for any reason fails
to indefeasibly pay any amount required under paragraph (a) or (b) of this Section 11.03 to
be paid by it to the Administrative Agent (or any sub-agent thereof), the Collateral Agent or any
Receiver or any Related Party of any of the foregoing, each Lender severally agrees to pay to the
Administrative Agent (or any such sub-agent), the Collateral Agent (or any sub-agent thereof), such
Receiver or such Related Party, as the case may be, such Lender’s pro rata share (determined as of
the time that the applicable unreimbursed expense or indemnity payment is sought) of such unpaid
amount; provided that the unreimbursed expense or indemnified loss, claim, damage,
liability or related expense, as the case may be, was incurred by or asserted against the
Administrative Agent (or any such sub-agent), the Collateral Agent (or any sub-agent thereof) or
the Receiver, in each case, in its capacity as such, or against any Related Party of any of the
foregoing acting for the Administrative Agent (or any such sub-agent), the Collateral Agent (or any
sub-agent thereof) or the Receiver in connection with such capacity. The obligations of the
Lenders under this paragraph (c) are subject to the provisions of Section 2.14. For
purposes hereof, a Lender’s “pro rata share” shall be determined based upon its share of the sum of
the total outstanding Term Loans and unused Commitments of all Lenders at the time.

     (d) Waiver of Consequential Damages, Etc. To the fullest extent permitted by
applicable Requirements of Law, no Loan Party shall assert, and each Loan Party hereby waives, any
claim against any Indemnitee, on any theory of liability, for special, indirect, consequential or
punitive damages (as opposed to direct or actual damages) arising out of, in connection with,
or as a result of, this Agreement, any other Loan Document or any agreement or instrument
contemplated hereby, the transactions contemplated hereby or thereby, any Loan or the use of the
proceeds thereof. No Indemnitee referred to in paragraph (b) above shall be liable for any damages
arising from the use by unintended recipients of any information or other materials

 

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distributed by
it through telecommunications, electronic or other information transmission systems in connection
with this Agreement or the other Loan Documents or the transactions contemplated hereby or thereby.

     (e) Payments. All amounts due under this Section shall be payable not later than
three (3) Business Days after demand therefore accompanied by reasonable particulars of amounts
due.

SECTION 11.04 Successors and Assigns.

     (a) Successors and Assigns Generally. The provisions of this Agreement shall be
binding upon and inure to the benefit of the parties hereto and their respective successors and
assigns permitted hereby, except that no Loan Party may (except as a result of a transaction
expressly permitted by Section 6.05(c) or 6.05(e)) assign or otherwise transfer any
of its rights or obligations hereunder without the prior written consent of the Administrative
Agent, the Collateral Agent and each Lender and no Lender may assign or otherwise transfer any of
its rights or obligations hereunder except (i) to an Eligible Assignee in accordance with the
provisions of paragraph (b) of this Section 11.04, (ii) by way of participation in
accordance with the provisions of paragraph (d) of this Section 11.04 or (iii) by way of
pledge or assignment of a security interest subject to the restrictions of paragraph (f) of this
Section (and any other attempted assignment or transfer by any Borrower or any Lender shall be null
and void). Nothing in this Agreement, expressed or implied, shall be construed to confer upon any
person (other than the parties hereto, their respective successors and assigns permitted hereby,
Participants to the extent provided in paragraph (d) of this Section and, to the extent expressly
contemplated hereby, the other Indemnitees) any legal or equitable right, remedy or claim under or
by reason of this Agreement.

     (b) Assignments by Lenders. Any Lender may at any time assign to one or more Eligible
Assignees all or a portion of its rights and obligations under this Agreement (including all or a
portion of its Commitment and the Loans at the time owing to it); provided that

          (i) except in the case of any assignment made in connection with the primary syndication of
the Commitment and Loans by the Arrangers up to three (3) months after the Closing Date or an
assignment of the entire remaining amount of the assigning Lender’s Commitment and the Loans at the
time owing to it or in the case of an assignment to a Lender or an Affiliate of a Lender or an
Approved Fund with respect to a Lender, the aggregate amount of the Commitment (which for this
purpose includes Loans outstanding thereunder) or, if the applicable Commitment is not then in
effect, the principal outstanding balance of the Loans of the assigning Lender subject to each such
assignment (determined as of the date the Assignment and Assumption with respect to such assignment
is delivered to the Administrative Agent or, if “Trade Date” is specified in the Assignment and
Assumption, as of the Trade Date) shall be an integral multiple of $1 million (provided that in the case of a simultaneous assignment by any
assigning Lender of U.S. Term Loans and Canadian Term Loans held by such Lender, the principal
outstanding balance of such Loans subject to such assignment shall be aggregated for purposes of
determining such minimum assignment amount), unless each of the Administrative Agent and, so long
as no Event of Default has occurred and is continuing, Administrative Borrower otherwise consents
(each such consent not to be unreasonably withheld or delayed);

 

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          (ii) each partial assignment shall be made as an assignment of a proportionate part of all the
assigning Lender’s rights and obligations under this Agreement with respect to the Loan or the
Commitment assigned, except that this clause (ii) shall not prohibit any Lender from assigning all
or a portion of its rights and obligations among separate Classes on a non-pro rata basis; and

          (iii) the parties to each assignment shall execute and deliver to the Administrative Agent an
Assignment and Assumption, together with (except in the case of any such assignments by the
Arrangers or their Affiliates) a processing and recordation fee of $3,500 (provided that only one
such fee shall be imposed in the case of simultaneous assignments by related Approved Funds or
Affiliates of the assigning Lender), and the Eligible Assignee, if it shall not be a Lender, shall
deliver to the Administrative Agent an Administrative Questionnaire.

Subject to acceptance and recording thereof by the Administrative Agent pursuant to paragraph (c)
of this Section 11.04, from and after the effective date specified in each Assignment and
Assumption, the Eligible Assignee thereunder shall be a party to this Agreement and, to the extent
of the interest assigned by such Assignment and Assumption, have the rights and obligations of a
Lender under this Agreement, and the assigning Lender thereunder shall, to the extent of the
interest assigned by such Assignment and Assumption, be released from its obligations under this
Agreement (and, in the case of an Assignment and Assumption covering all of the assigning Lender’s
rights and obligations under this Agreement, such Lender shall cease to be a party hereto) but
shall continue to be entitled to the benefits of Section 2.12, Section 2.13,
Section 2.15, Section 2.16, Section 7.10 and Section 11.03 with
respect to facts and circumstances occurring prior to the effective date of such assignment. No
assignment shall be or shall be deemed to be a discharge, recission, extinguishment, novation or
substitution of any Loan and any Loan assigned in accordance with this Section 11.04 shall
continue to be the same obligation and not a new obligation. Any assignment or transfer by a
Lender of rights or obligations under this Agreement that does not comply with this paragraph shall
be treated for purposes of this Agreement as a sale by such Lender of a participation in such
rights and obligations in accordance with paragraph (d) of this Section 11.04. In the
event of a transfer by novation of all or part of its rights and obligations under this Agreement
by a Lender, such Lender expressly reserves the rights, powers, privileges and actions that it
enjoys under any Security Documents governed by French law in favor of its Eligible Assignee, in
accordance with the provisions of article 1278 et seq. of the French Code civil.

     (c) Register. The Administrative Agent, acting solely for this purpose as an agent of
the Borrowers, shall, at all times at one of its offices in Stamford, Connecticut, while any Loans
are outstanding, maintain a copy of each Assignment and Assumption delivered to it and a register
for the recordation of the names and addresses of the Lenders, and the Commitments of, and
principal amounts of the Loans owing to, each Lender pursuant to the terms hereof from
time to time (the “Register”). The entries in the Register shall be conclusive, and the
Borrowers, the Administrative Agent and the Lenders shall treat each person whose name is recorded
in the Register pursuant to the terms hereof as a Lender hereunder for all purposes of this
Agreement, notwithstanding notice to the contrary. The Register shall be available for inspection
by the Borrowers, the Collateral Agent and any Lender (with respect to its own interest only), at
any reasonable time and from time to time upon reasonable prior notice. The requirements of this
Section 11.04(c) are intended to result in any and all Loans being in “registered form” for

 

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purposes of Section 871, Section 881 and any other applicable provision of the Code, and shall be
interpreted and applied in a manner consistent therewith.

     (d) Participations. Any Lender may at any time, without the consent of, or notice to,
any Borrower or the Administrative Agent sell participations to any person (other than a natural
person or any Borrower, any of any Borrower’s or any other Company’s Affiliates or Subsidiaries)
(each, a “Participant”) in all or a portion of such Lender’s rights and/or obligations under this
Agreement (including all or a portion of its Commitment and/or the Loans owing to it);
provided that (i) such Lender’s obligations under this Agreement shall remain unchanged,
(ii) such Lender shall remain solely responsible to the other parties hereto for the performance of
such obligations and (iii) each Loan Party, the Administrative Agent and the Lenders shall continue
to deal solely and directly with such Lender in connection with such Lender’s rights and
obligations under this Agreement.

     Any agreement or instrument pursuant to which a Lender sells such a participation shall
provide that such Lender shall retain the sole right to enforce the Loan Documents and to approve
any amendment, modification or waiver of any provision of the Loan Documents; provided
that such agreement or instrument may provide that such Lender will not, without the consent of the
Participant, agree to any amendment, modification or waiver described in clause (i), (ii) or (iii)
of the first proviso to Section 11.02(b) that affects such Participant. Subject to
paragraph (e) of this Section, each Borrower agrees that each Participant shall be entitled to the
benefits of Section 2.12, Section 2.13, Section 2.15, Section 2.16
and Section 7.10 (subject to the requirements of those Sections) to the same extent as if
it were a Lender and had acquired its interest by assignment pursuant to paragraph (b) of this
Section. To the extent permitted by law, each Participant also shall be entitled to the benefits
of Section 11.08 as though it were a Lender, provided such Participant agrees to be subject
to such sections (as applicable) as though it were a Lender.

     (e) Limitations on Participant Rights. A Participant shall not be entitled to receive
any greater payment under Section 2.12, Section 2.13, Section 2.15,
Section 2.16 and Section 7.10 than the applicable Lender would have been entitled
to receive with respect to the participation sold to such Participant, unless the sale of the
participation to such Participant is made with Administrative Borrower’s prior written consent.

     (f) Certain Pledges. Any Lender may at any time pledge or assign a security interest
in all or any portion of its rights under this Agreement to secure obligations of such Lender,
including any pledge or assignment to secure obligations to a Federal Reserve Bank;
provided that no such pledge or assignment shall release such Lender from any of its
obligations hereunder or substitute any such pledgee or assignee for such Lender as a party hereto.
In the case of any Lender that is a fund that invests in bank loans, such Lender may, without the
consent of any Loan Party or the Administrative Agent, collaterally assign or pledge all or
any portion of its rights under this Agreement, including the Loans and Notes or any other
instrument evidencing its rights as a Lender under this Agreement, to any holder of, trustee for,
or any other representative of holders of, obligations owed or securities issued, by such fund, as
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     (g) Electronic Execution of Assignments. The words “execution,” “signed,”
“signature,” and words of like import in any Assignment and Assumption shall be deemed to include
electronic signatures or the keeping of records in electronic form, each of which shall be of the
same legal effect, validity or enforceability as a manually executed signature or the use of a
paper-based recordkeeping system, as the case may be, to the extent and as provided for in any
applicable Requirement of Law, including the Federal Electronic Signatures in Global and National
Commerce Act, the New York State Electronic Signatures and Records Act, or any other similar state
laws based on the Uniform Electronic Transactions Act.

SECTION 11.05 Survival of Agreement. All covenants, agreements, representations and
warranties made by the Loan Parties in the Loan Documents and in the certificates or other
instruments delivered in connection with or pursuant to this Agreement or any other Loan Document
shall be considered to have been relied upon by the other parties hereto and shall survive the
execution and delivery of the Loan Documents and the making of any Loans, regardless of any
investigation made by any such other party or on its behalf and notwithstanding that the Agents or
any Lender may have had notice or knowledge of any Default or incorrect representation or warranty
at the time any credit is extended hereunder, and shall continue in full force and effect as long
as the principal of or any accrued interest on any Loan or any fee or any other amount payable
under this Agreement is outstanding and unpaid or any Commitments have not expired or terminated.
The provisions of Section 2.12, Section 2.14, Section 2.15, Section
2.16 and ARTICLE X shall survive and remain in full force and effect regardless of the
consummation of the transactions contemplated hereby, the repayment of the Loans, the expiration or
termination of the Commitments or the termination of this Agreement or any provision hereof.

SECTION 11.06 Counterparts; Integration; Effectiveness. This Agreement may be
executed in counterparts (and by different parties hereto in different counterparts), each of which
shall constitute an original, but all of which when taken together shall constitute a single
contract. This Agreement and the other Loan Documents and any separate letter agreements with
respect to fees payable to any Agent or the Arrangers (and any provisions of any other letter
agreements among Canadian Borrower, the Arrangers ABN AMRO, and UBS Loan Finance LLC that are
explicitly stated to survive the execution and delivery of this Agreement) (which surviving
obligations are hereby assumed by the Borrowers), constitute the entire contract among the parties
relating to the subject matter hereof and supersede any and all previous agreements and
understandings, oral or written, relating to the subject matter hereof. Except as provided in
Section 4.01, this Agreement shall become effective when it shall have been executed by the
Administrative Agent and when the Administrative Agent shall have received counterparts hereof
that, when taken together, bear the signatures of each of the other parties hereto. Delivery of an
executed counterpart of a signature page of this Agreement by telecopier shall be effective as delivery of a manually executed
counterpart of this Agreement. THIS WRITTEN AGREEMENT REPRESENTS THE FINAL AGREEMENT BETWEEN THE
PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL
AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.

SECTION 11.07 Severability. Any provision of this Agreement held to be invalid,
illegal or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the

 

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extent of such invalidity, illegality or unenforceability without affecting the validity, legality
and enforceability of the remaining provisions hereof; and the invalidity of a particular provision
in a particular jurisdiction shall not invalidate such provision in any other jurisdiction.

SECTION 11.08 Right of Setoff. Subject to the Intercreditor Agreement, if an Event of
Default shall have occurred and be continuing, each Lender and each of their respective Affiliates
is hereby authorized at any time and from time to time, to the fullest extent permitted by
applicable Requirements of Law, to set off and apply any and all deposits (general or special, time
or demand, provisional or final, in whatever currency) at any time held and other obligations (in
whatever currency) at any time owing by such Lender or any such Affiliate to or for the credit or
the account of any Borrower or any other Loan Party against any and all of the obligations of such
Borrower or such Loan Party now or hereafter existing under this Agreement or any other Loan
Document to such Lender, irrespective of whether or not such Lender shall have made any demand
under this Agreement or any other Loan Document and although such obligations of such Borrower or
such Loan Party may be contingent or unmatured or are owed to a branch or office of such Lender
different from the branch or office holding such deposit or obligated on such indebtedness. The
rights of each Lender and their respective Affiliates under this Section are in addition to other
rights and remedies (including other rights of setoff) that such Lender or its respective
Affiliates may have. Each Lender agrees to notify Administrative Borrower and the Administrative
Agent promptly after any such setoff and application; provided that the failure to give
such notice shall not affect the validity of such setoff and application.

SECTION 11.09 Governing Law; Jurisdiction; Consent to Service of Process.

     (a) Governing Law. This Agreement shall be construed in accordance with and governed
by the law of the State of New York, without regard to conflicts of law principles that would
require the application of the laws of another jurisdiction.

     (b) Submission to Jurisdiction. Each Loan Party hereby irrevocably and
unconditionally submits, for itself and its property, to the nonexclusive jurisdiction of the
Supreme Court of the State of New York sitting in New York County and of the United States District
Court of the Southern District of New York, and any appellate court from any thereof, in any action
or proceeding arising out of or relating to any Loan Document, or for recognition or
enforcement of any judgment, and each of the parties hereto hereby irrevocably and
unconditionally agrees that all claims in respect of any such action or proceeding may be heard and
determined in such New York State court or, to the fullest extent permitted by applicable law, in
such Federal court. Each of the parties hereto agrees that a final judgment in any such action or
proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment
or in any other manner provided by law. Nothing in this Agreement or any other Loan Document shall
affect any right that any Agent or any Lender may otherwise have to bring any action or proceeding
relating to this Agreement or any other Loan Document against any Loan Party or its properties in
the courts of any jurisdiction.

     (c) Waiver of Venue. Each Loan Party hereby irrevocably and unconditionally waives,
to the fullest extent permitted by applicable Requirements of Law, any objection which it may now
or hereafter have to the laying of venue of any suit, action or proceeding arising out of or
relating to this Agreement or any other Loan Document in any court referred to in Section

 

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11.09(b). Each of the parties hereto hereby irrevocably waives, to the fullest extent
permitted by applicable Requirements of Law, the defense of an inconvenient forum to the
maintenance of such action or proceeding in any such court.

     (d) Service of Process. Each party hereto irrevocably consents to service of process
in any action or proceeding arising out of or relating to any Loan Document, in the manner provided
for notices (other than telecopier, e-mail or other electronic transmission) in Section
11.01. Each Loan Party hereby irrevocably designates, appoints and empowers CSC Corporation,
1133 Ave of the Americas, Suite 3100, New York, New York, 10036 (telephone no: 212-299-5600)
(telecopy no: 212-299-5656) (electronic mail address: jbudhu@cscinfo.com) (the “Process Agent”), in
the case of any suit, action or proceeding brought in the United States of America as its designee,
appointee and agent to receive, accept and acknowledge for and on its behalf, and in respect of its
property, service of any and all legal process, summons, notices and documents that may be served
in any action or proceeding arising out of or in connection with this Agreement or any Loan
Document. Nothing in this Agreement or any other Loan Document will affect the right of any party
hereto to serve process in any other manner permitted by applicable Requirements of Law.

SECTION 11.10 Waiver of Jury Trial. Each Loan Party hereby waives, to the fullest
extent permitted by applicable Requirements of Law, any right it may have to a trial by jury in any
legal proceeding directly or indirectly arising out of or relating to this Agreement, any other
Loan Document or the transactions contemplated hereby (whether based on contract, tort or any other
theory). Each party hereto (a) certifies that no representative, agent or attorney of any other
party has represented, expressly or otherwise, that such other party would not, in the event of
litigation, seek to enforce the foregoing waiver and (b) acknowledges that it and the other parties
hereto have been induced to enter into this Agreement by, among other things, the mutual waivers
and certifications in this Section.

SECTION 11.11 Headings. Article and Section headings and the Table of Contents used herein are for convenience of
reference only, are not part of this Agreement and shall not affect the construction of, or be
taken into consideration in interpreting, this Agreement.

SECTION 11.12 Treatment of Certain Information; Confidentiality. Each Agent and each
Lender agrees to maintain the confidentiality of the Information (as defined below), except that
Information may be disclosed (a) to its Affiliates and to its and its Affiliates’ respective
partners, directors, officers, employees, agents, advisors and other representatives (it being
understood that the persons to whom such disclosure is made will be informed of the confidential
nature of such Information and instructed to keep such Information confidential), (b) to the extent
requested by any regulatory authority purporting to have jurisdiction over it (including any
self-regulatory authority, such as the National Association of Insurance Commissioners), (c) to the
extent required by applicable Requirements of Law or by any subpoena or similar legal process, (d)
to any other party hereto, (e) in connection with the exercise of any remedies hereunder or under
any other Loan Document or any action or proceeding relating to this Agreement or any other Loan
Document or the enforcement of rights hereunder or thereunder, (f) subject to an agreement
containing provisions substantially the same as those of this Section 11.12, to (i) any
assignee of or Participant in, or any prospective assignee of or Participant in, any of its rights
or obligations under this Agreement, (ii) any actual or

 

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prospective counterparty (or its advisors)
to any swap or derivative transaction relating to any Loan Party and its obligations or (iii) any
rating agency for the purpose of obtaining a credit rating applicable to any Lender, (g) with the
consent of Administrative Borrower or the applicable Loan Party or (h) to the extent such
Information (x) becomes publicly available other than as a result of a breach of this Section or
(y) becomes available to the Administrative Agent, any Lender or any of their respective Affiliates
on a nonconfidential basis from a source other than the Loan Parties. For purposes of this
Section, “Information” means all information received from a Loan Party or any of its Subsidiaries
relating to the Loan Parties or any of their Subsidiaries or any of their respective businesses,
other than any such information that is available to any Agent or any Lender on a nonconfidential
basis prior to disclosure by any Loan Party or any of their Subsidiaries. Any person required to
maintain the confidentiality of Information as provided in this Section shall be considered to have
complied with its obligation to do so if such person has exercised the same degree of care to
maintain the confidentiality of such Information as such person would accord to its own
confidential information.

SECTION 11.13 USA PATRIOT Act Notice. Each Lender that is subject to the Act (as
hereinafter defined) and the Administrative Agent (for itself and not on behalf of any Lender)
hereby notifies the Borrowers and the other Loan Parties that pursuant to the requirements of the
USA PATRIOT Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001)) (the “Act”), it is
required to obtain, verify and record information that identifies the Borrowers and the other Loan
Parties, which information includes the name, address and tax identification number of the
Borrowers and the other Loan Parties and other information regarding the Borrowers and the other
Loan Parties that will allow such Lender or the Administrative Agent, as applicable, to identify
the Borrowers and the other Loan Parties in accordance with the Act. This notice is given in
accordance with the requirements of the Act and is effective as to the Lenders and the
Administrative Agent.

SECTION 11.14 Interest Rate Limitation. Notwithstanding anything to the contrary
contained herein, if at any time the interest rate applicable to any Loan, together with all fees,
charges and other amounts which are treated as interest on such Loan under applicable Requirements
of Law (collectively, the “Charges”), shall exceed the maximum lawful rate (the “Maximum Rate”)
which may be contracted for, charged, taken, received or reserved by the Lender holding such Loan
in accordance with applicable Requirements of Law, the rate of interest payable in respect of such
Loan hereunder, together with all Charges payable in respect thereof, shall be limited to the
Maximum Rate and, to the extent lawful, the interest and Charges that would have been payable in
respect of such Loan but were not payable as a result of the operation of this Section shall be
cumulated and the interest and Charges payable to such Lender in respect of other Loans or periods
shall be increased (but not above the Maximum Rate therefor) until such cumulated amount, together
with interest thereon at the Interbank Rate to the date of repayment, shall have been received by
such Lender.

SECTION
11.15 Lender Addendum. Each Lender to become a party to this Agreement on the
date hereof shall do so by delivering to the Administrative Agent a Lender Addendum duly executed
by such Lender, Administrative Borrower and the Administrative Agent.

 

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SECTION 11.16 Obligations Absolute. To the fullest extent permitted by applicable
Requirements of Law, all obligations of the Loan Parties hereunder shall be absolute and
unconditional irrespective of:

     (a) any bankruptcy, insolvency, reorganization, arrangement, readjustment, composition,
liquidation or the like of any Loan Party;

     (b) any lack of validity or enforceability of any Loan Document or any other agreement or
instrument relating thereto against any Loan Party;

     (c) any change in the time, manner or place of payment of, or in any other term of, all or any
of the Obligations, or any other amendment or waiver of or any consent to any departure from any
Loan Document or any other agreement or instrument relating thereto;

     (d) any exchange, release or non-perfection of any other Collateral, or any release or
amendment or waiver of or consent to any departure from any guarantee, for all or any of the
Obligations;

     (e) any exercise or non-exercise, or any waiver of any right, remedy, power or privilege under
or in respect hereof or any Loan Document; or

     (f) any other circumstances which might otherwise constitute a defense available to, or a
discharge of, the Loan Parties.

SECTION 11.17 Intercreditor Agreement. Notwithstanding anything to the contrary contained herein, each Lender acknowledges that
the Lien and security interest granted to the Collateral Agent pursuant to the Security Documents
and the exercise of any right or remedy by such Collateral Agent thereunder are subject to the
provisions of the Intercreditor Agreement. In the event of any conflict between the terms of the
Intercreditor Agreement and the Security Documents, the terms of the Intercreditor Agreement shall
govern and control.

SECTION 11.18 Judgment Currency.

(a) Each Loan Party’s obligations hereunder and under the other Loan Documents to make
payments in Dollars (the “Obligation Currency”) shall not be discharged or satisfied by any tender
or recovery pursuant to any judgment expressed in or converted into any currency other than the
Obligation Currency, except to the extent that such tender or recovery results in the effective
receipt by the Administrative Agent or the respective Lender of the full amount of the Obligation
Currency expressed to be payable to the Administrative Agent or such Lender under this Agreement or
the other Loan Documents. If, for the purpose of obtaining or enforcing judgment against any Loan
Party in any court or in any jurisdiction, it becomes necessary to convert into or from any
currency other than the Obligation Currency (such other currency being hereinafter referred to as
the “Judgment Currency”) an amount due in the Obligation Currency, the conversion shall be made at
the spot selling rate at which the Administrative Agent (or if the Administrative Agent does not
quote a rate of exchange on such currency, by a known dealer in such currency designated by the
Administrative Agent) offers to sell such Judgment Currency for the Obligation Currency in the
London foreign exchange market at approximately 11:00 a.m. London time on such date for delivery
two (2) Business Days later (such date of determination of

 

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such spot selling rate, being
hereinafter referred to as the “Judgment Currency Conversion Date”).

     (b) If there is a change in the rate of exchange prevailing between the Judgment Currency
Conversion Date and the date of actual payment of the amount due, each Borrower covenants and
agrees to pay, or cause to be paid, such additional amounts, if any (but in any event not a lesser
amount) as may be necessary to ensure that the amount paid in the Judgment Currency, when converted
at the rate of exchange prevailing on the date of payment, will produce the amount of the
Obligation Currency which could have been purchased with the amount of Judgment Currency stipulated
in the judgment or judicial award at the rate of exchange prevailing on the Judgment Currency
Conversion Date.

     (c) For purposes of determining any rate of exchange for this Section 11.18, such
amounts shall include any premium and costs payable in connection with the purchase of the
Obligation Currency.

SECTION 11.19 [INTENTIONALLY OMITTED].

SECTION 11.20 [INTENTIONALLY OMITTED].

SECTION 11.21 Abstract Acknowledgment of Indebtedness and Joint Creditorship.

     (a) Notwithstanding any other provision of this Agreement, each Loan Party hereby irrevocably
and unconditionally agrees and covenants with the Collateral Agent by way of an abstract
acknowledgment of indebtedness (abstraktes Schuldversprechen) that it owes to the Collateral Agent
as creditor in its own right and not as a representative of the other Secured Parties, sums equal
to, and in the currency of, each amount payable by such Loan Party to each of the Secured Parties
under each of the Loan Documents relating to any Secured Obligations, as and when that amount falls
due for payment under the relevant Secured Debt Agreement or would have fallen due but for any
discharge resulting from failure of another Secured Party to take appropriate steps, in insolvency
proceedings affecting such Loan Party, to preserve its entitlement to be paid that amount.

     (b) Each Loan Party undertakes to pay to the Collateral Agent upon first written demand the
amount payable by such Loan Party to each of the Secured Parties under each of the Secured Debt
Agreements as such amount has become due and payable.

     (c) The Collateral Agent has the independent right to demand and receive full or partial
payment of the amounts payable by each Loan Party under this Section 11.21, irrespective of
any discharge of such Loan Party’s obligation to pay those amounts to the other Secured Parties
resulting from failure by them to take appropriate steps, in insolvency proceedings affecting such
Loan Party, to preserve their entitlement to be paid those amounts.

     (d) Any amount due and payable by a Loan Party to the Collateral Agent under this Section
11.21 shall be decreased to the extent that the other Secured Parties have received (and are
able to retain) payment in full of the corresponding amount under the other provisions of the
Secured Debt Agreements and any amount due and payable by a Loan Party to the other Secured

 

163

 

Parties under those provisions shall be decreased to the extent that the Collateral Agent has received (and
is able to retain) payment in full of the corresponding amount under this Section 11.21;
provided that no Loan Party may consider its obligations towards a Secured Party to be so
discharged by virtue of any set-off, counterclaim or similar defense that it may invoke vis-à-vis
the Collateral Agent.

     (e) The rights of the Secured Parties (other than the Collateral Agent) to receive payment of
amounts payable by each Loan Party under the Secured Debt Agreements are several and are separate
and independent from, and without prejudice to, the rights of the Collateral Agent to receive
payment under this Section 11.21.

     (f) In addition, but without prejudice to the foregoing, the Collateral Agent shall be the
joint creditor (together with the relevant Secured Parties) of all obligations of each Loan Party
towards each of the Secured Parties under the Secured Debt Agreements.

SECTION 11.22 Special Appointment of Collateral Agent for German Security.

     (a) (i) Each Lender that is or will become party to this Agreement hereby appoints the
Collateral Agent as trustee (Treuhaender) and administrator for the purpose of holding on trust
(Treuhand), administering, enforcing and releasing the German Security (as defined below) for the
Secured Parties, (ii) the Collateral Agent accepts its appointment as a trustee and administrator
of the German Security on the terms and subject to the conditions set out in this Agreement and
(iii) the Lenders, the Collateral Agent and all other parties to this Agreement agree that, in
relation to the German Security, no Lender shall exercise any independent power to enforce any
German Security or take any other action in relation to the enforcement of the German Security, or
make or receive any declarations in relation thereto.

     (b) To the extent possible, the Collateral Agent shall hold and administer any German Security
which is security assigned, transferred or pledged under German law to it as a trustee for the
benefit of the Secured Parties, where “German Security” means the assets which are the subject of a
security document which is governed by German law.

     (c) Each Lender hereby authorizes and instructs the Collateral Agent (with the right of sub
delegation) to enter into any documents evidencing German Security and to make and accept all
declarations and take all actions as it considers necessary or useful in connection with any German
Security on behalf of the Secured Parties. The Collateral Agent shall further be entitled to
rescind, release, amend and/or execute new and different documents securing the German Security.

     (d) The Lenders and the Collateral Agent agree that all rights and claims constituted by the
abstract acknowledgment of indebtedness pursuant to this Section 11.22 and all proceeds
held by the Collateral Agent pursuant to or in connection with such abstract acknowledgment of
indebtedness are held by the Collateral Agent with effect from the date of such abstract
acknowledgment of indebtedness in trust for the Secured Parties and will be administered in
accordance with the Loan Documents. The Secured Parties and the Collateral Agent agree further
that the respective Loan Party’s obligations under such abstract acknowledgment of indebtedness
shall not increase the total amount of the Secured Obligations (as defined in the

 

164

 

respective agreement governing German Security) and shall not result in any additional liability of any of the
Loan Parties or otherwise prejudice the rights of any of the Loan Parties. Accordingly, payment of
the obligations under such abstract acknowledgment of indebtedness shall, to the same extent,
discharge the corresponding Secured Obligations and vice versa.

SECTION 11.23 Special Appointment of Administrative Agent in Relation to South Korea.

     (a) Notwithstanding any other provision of this Agreement, each Loan Party hereby irrevocably
and unconditionally undertakes to pay to the Administrative Agent, as creditor in its own right and
not as representative of the other Secured Parties, sums equal to and in the currency of each
amount payable by such Loan Party to each of the Secured Parties under each of the Loan Documents
as and when that amount falls due for payment under the relevant Loan Document or would have fallen
due but for any discharge resulting from failure of another Secured Party to take appropriate
steps, in insolvency proceedings affecting that Loan Party, to preserve its entitlement to be paid
that amount.

     (b) The Administrative Agent shall have its own independent right to demand payment of the
amounts payable by each Loan Party under this Section 11.23, irrespective of any discharge
of such Loan Party’s obligation to pay those amounts to the Secured Parties resulting from failure
by them to take appropriate steps, in insolvency proceedings affecting that Loan Party, to preserve
their entitlement to be paid those amounts.

     (c) Any amount due and payable by a Loan Party to the Administrative Agent under this
Section 11.23 shall be decreased to the extent that the other Secured Parties have received
(and are able to retain) payment in full of the corresponding amount under the other provisions of
the Loan Documents and any amount due and payable by a Loan Party to the other Secured Parties
under those provisions shall be decreased to the extent that the Administrative Agent has received
(and is able to retain) payment in full of the corresponding amount under this Section
11.23.

     (d) Subject to paragraph (c) above, the rights of the Secured Parties (in each case, other
than the Administrative Agent) to receive payment of amounts payable by each Loan Party under the
Loan Documents are several and are separate and independent from, and without prejudice to, the
rights of the Administrative Agent to receive payment under this Section 11.23.

SECTION 11.24 Designation of Collateral Agent under Civil Code of Quebec. Each of the
parties hereto (including each Lender, acting for itself and on behalf of each of its Affiliates
which are or become Secured Parties from time to time) confirms the appointment and designation of
the Collateral Agent (or any successor thereto) as the person holding the power of attorney (fondé
de pouvoir) within the meaning of Article 2692 of the Civil Code of Québec for the purposes of the
hypothecary security to be granted by the Loan Parties or any one of them under the laws of the
Province of Québec and, in such capacity, the Collateral Agent shall hold the hypothecs granted
under the laws of the Province of Québec as such fondé de pouvoir in the exercise of the rights
conferred thereunder. The execution by the Collateral Agent in its capacity as fondé de pouvoir
prior to the date hereof of any document creating or evidencing any such hypothecs is hereby
ratified and confirmed. Notwithstanding the provisions of Section 32 of the

 

165

 

Act respecting the special powers of legal persons (Québec), the Collateral Agent may acquire and be the holder of any
of the bonds secured by any such hypothec. Each future Secured Party, whether a Lender or any other holder of any Secured Obligation, shall be
deemed to have ratified and confirmed (for itself and on behalf of each of its Affiliates that are
or become Secured Parties from time to time) the appointment of the Collateral Agent as fondé de
pouvoir.

SECTION 11.25 Maximum Liability. Subject to Section 7.08 and Sections
7.11 through 7.14, it is the desire and intent of (i) each Loan Party and the Lenders,
that, in each case, the liability of such Loan Party shall be enforced against such Loan Party to
the fullest extent permissible under the laws and public policies applied in each jurisdiction in
which enforcement is sought after giving effect to the rights of contribution established in the
Contribution, Intercompany, Contracting and Offset Agreement that are valid and enforceable and not
subordinated to the claims of other creditors as determined in such action or proceeding. If,
however, and to the extent that, the obligations of any Loan Party under any Loan Document shall be
adjudicated to be invalid or unenforceable for any reason (including, without limitation, because
of any applicable state, provincial or federal law relating to fraudulent conveyances or
transfers), then the amount of such Loan Party’s obligations (in the case of any invalidity or
unenforceability with respect such Loan Party’s obligations) under the Loan Documents shall be
deemed to be reduced and such Loan Party shall pay the maximum amount of the Secured Obligations
which would be permissible under applicable law; provided that any guarantees of any such
obligations that are subject to deemed reduction pursuant to this Section 11.25 shall, to
the fullest extent permitted by applicable Requirements of Law, be absolute and unconditional in
respect of the full amount of such obligations without giving effect to any such deemed reduction.

[Signature Pages Follow]

	 	 	 
	 
	 	166

 

 

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

	 	 	 	 	 
	 	NOVELIS INC., as Canadian Borrower

 	 
	 	By:  	/s/ Orville Lunking	 
	 	 	Name:  	Orville Lunking	 
	 	 	Title:  	Vice
President and Treasurer	 
	 
	 
	 	NOVELIS CORPORATION, as U.S. Borrower

 	 
	 	By:  	/s/
Orville Lunking	 
	 	 	Name:  	Orville Lunking	 
	 	 	Title:  	Authorized
Signatory	 
	 
	 
	 	NOVELIS PAE CORPORATION, as U.S. Guarantor

 	 
	 	By:  	/s/
Orville Lunking	 
	 	 	Name:  	Orville Lunking	 
	 	 	Title:  	Authorized
Signatory	 
	 
	 
	 	NOVELIS FINANCES USA LLC, as U.S. Guarantor

 	 
	 	By:  	/s/
Orville Lunking	 
	 	 	Name:  	Orville Lunking	 
	 	 	Title:  	Authorized
Signatory	 
	 
	 
	 	NOVELIS SOUTH AMERICA HOLDINGS LLC, as U.S. Guarantor

 	 
	 	By:  	/s/
Orville Lunking	 
	 	 	Name:  	Orville Lunking	 
	 	 	Title:  	Vice
President and Treasurer	 
	 
	 

 

S-1

 

	 	 	 	 	 

	 	 	 	 	 
	 	ALUMINUM UPSTREAM HOLDINGS LLC, as U.S. Guarantor

 	 
	 	By:  	/s/
Orville Lunking	 
	 	 	Name:  	Orville Lunking	 
	 	 	Title:  	Vice
President and Treasurer	 
	 
	 

 

S-2

 

	 	 	 	 	 

	 	 	 	 	 
	 	NOVELIS UK LTD, as U.K. Guarantor

 	 
	 	By:  	/s/
Orville Lunking	 
	 	 	Name:  	Orville Lunking	 
	 	 	Title:  	Authorized
Signatory	 
	 
	 
	 	NOVELIS AG, as Swiss Guarantor

 	 
	 	By:  	/s/
Orville Lunking	 
	 	 	Name:  	Orville Lunking	 
	 	 	Title:  	Authorized
Signatory	 
	 
	 
	 	NOVELIS CAST HOUSE TECHNOLOGY LTD.,
 as Canadian Guarantor
 	 
	 
	 	By:  	/s/
Orville Lunking	 
	 	 	Name:  	Orville Lunking	 
	 	 	Title:  	Authorized
Signatory	 
	 
	 
	 	4260848 CANADA INC., as Canadian Guarantor

 	 
	 	By:  	/s/
Orville Lunking	 
	 	 	Name:  	Orville Lunking	 
	 	 	Title:  	Authorized
Signatory	 
	 
	 
	 	4260856 CANADA INC., as Canadian Guarantor

 	 
	 	By:  	/s/
Orville Lunking	 
	 	 	Name:  	Orville Lunking	 
	 	 	Title:  	Authorized
Signatory	 
	 
	 

 

S-3

 

	 	 	 	 	 

	 	 	 	 	 
	 	NOVELIS NO. 1 LIMITED PARTNERSHIP, as
Canadian Guarantor,

 	 
	 	By: 4260848 CANADA INC.	 
	 	Its:  General Partner 
	 	 	 
	 	By:  	/s/
Orville Lunking	 
	 	 	Name:  	Orville Lunking	 
	 	 	Title:  	Authorized
Signatory	 
	 
	 
	 	NOVELIS EUROPE HOLDINGS LIMITED, as U.K. Guarantor

 	 
	 	By:  	/s/
Orville Lunking	 
	 	 	Name:  	Orville Lunking	 
	 	 	Title:  	Authorized
Signatory	 
	 
	 
	 	NOVELIS SWITZERLAND SA, as Swiss Guarantor

 	 
	 	By:  	/s/
Orville Lunking	 
	 	 	Name:  	Orville Lunking	 
	 	 	Title:  	Authorized
Signatory	 
	 
	 
	 	NOVELIS TECHNOLOGY AG, as Swiss Guarantor

 	 
	 	By:  	/s/
Orville Lunking	 
	 	 	Name:  	Orville Lunking	 
	 	 	Title:  	Authorized
Signatory	 
	 
	 

 

S-4

 

	 	 	 	 	 

	 	 	 	 	 
	 	AV ALUMINUM INC., as Guarantor

 	 
	 	By:  	/s/
Orville Lunking	 
	 	 	Name:  	Orville Lunking	 
	 	 	Title:  	Authorized
Signatory	 
	 
	 

	 	 	 
	 

	 	S-5

 

	 	 	 	 	 

	 	 	 	 	 
	 	NOVELIS DEUTSCHLAND GMBH, as German Guarantor

 	 
	 	By:  	/s/
Gottfried Weindl	 
	 	 	Name:  	Gottfried
Weindl	 
	 	 	Title:  	Managing
Director	 
	 
	 

	 	 	 
	 
	 	S-6

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	NOVELIS DO BRASIL LTDA., as Brazilian Guarantor

 	 
	 	By:  	/s/
Tadeu
Nardocci	 
	 	 	Name:  	Antonio
Tadeu Coelho Nardocci	 
	 	 	Title:  	Presidente	 
	 
	 
	 	 

 	 
	 	By:  	/s/
Alexandre Almeida	 
	 	 	Name:  	Alexandre
M. Almeida	 
	 	 	Title:  	Diretor
Financeiro	 

	 	 	 
	 
	 	S-7

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	Present when the Common Seal of

NOVELIS ALUMINIUM HOLDING COMPANY,

As Irish Guarantor,

was hereunto affixed in the presence of:

 	 
	 	Name:  	/s/
Andreas Thiele	 
	 	Title:  	Duly
appointed attorney	 
	 
	 
	 	Name:  	/s/
Eva Paus-Werdermann	 
	 	Title:  	Assistant
to Legal Counsel	 

	 	 	 
	 
	 	S-8

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	UBS AG, STAMFORD BRANCH, as
 Administrative Agent and as Collateral Agent

 	 
	 	By:  	/s/
Mary
E. Evans	 
	 	 	Name:  	Mary
E. Evans	 
	 	 	Title:  	Associate
Director	 
	 
	 
	 	 	 
	 	By:  	/s/
David Julie	 
	 	 	Name:  	David
B. Julie	 
	 	 	Title:  	Associate
Director	 
	 
	 
	 	UBS SECURITIES LLC, as Joint Lead Arranger
 and Joint Bookmanager

 	 
	 	By:  	/s/
Mary
E. Evans	 
	 	 	Name:  	Mary E.
Evans	 
	 	 	Title:  	Associate
Director	 
	 
	 
	 	 	 
	 	By:  	/s/
David Julie	 
	 	 	Name:  	David
B. Julie	 
	 	 	Title:  	Associate
Director	 
	 
	 

	 	 	 
	 
	 	S-9

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	UBS SECURITIES LLC, as Syndication Agent

 	 
	 	By:  	/s/ Mary
E. Evans	 
	 	 	Name:  	Mary
E. Evans	 
	 	 	Title:  	Associate
Director	 
	 
	 
	 	 	 
	 	By:  	/s/ Irja
R. Otsa	 
	 	 	Name:  	Irja
R. Otsa	 
	 	 	Title:  	Associate
Director	 
	 
	 

	 	 	 
	 
	 	S-10

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	ABN AMRO INCORPORATED, as Joint Lead
 Arranger and
Joint Bookmanager

 	 
	 	By:  	/s/ David
Wood	 
	 	 	Name:  	David
Wood	 
	 	 	Title:  	Managing
Director	 
	 
	 

	 	 	 
	 
	 	S-11

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	ABN AMRO INCORPORATED, as
 Documentation Agent

 	 
	 	By:  	/s/ David
Wood	 
	 	 	Name:  	David
Wood	 
	 	 	Title:  	Managing
Director	 
	 
	 

	 	 	 
	 
	 	S-12

 

 

	 	 	 	 	 

Annex I

Applicable Margin

	 	 	 	 	 
	Eurocurrency U.S. Term Loans and	 	ABR U.S. Term Loans and ABR Canadian
	Eurocurrency Canadian Term Loans	 	Term Loans
	 
	 	 	 	 
	2.00%
	 	 	1.00	%

 

 

 

Annex II

Amortization Table

	 	 	 	 	 
	 	 	 	 	Canadian Term Loan
	Date	 	U.S. Term Loan Amount	 	Amount
	 	 	 	 	 
	September 30, 2007	 	$1,650,000	 	$750,000
	 	 	 	 	 
	December 31, 2007	 	$1,650,000	 	$750,000
	 	 	 	 	 
	March 31, 2008	 	$1,650,000	 	$750,000
	 	 	 	 	 
	June 30, 2008	 	$1,650,000	 	$750,000
	 	 	 	 	 
	September 30, 2008	 	$1,650,000	 	$750,000
	 	 	 	 	 
	December 31, 2008	 	$1,650,000	 	$750,000
	 	 	 	 	 
	March 31, 2009	 	$1,650,000	 	$750,000
	 	 	 	 	 
	June 30, 2009	 	$1,650,000	 	$750,000
	 	 	 	 	 
	September 30, 2009	 	$1,650,000	 	$750,000
	 	 	 	 	 
	December 31, 2009	 	$1,650,000	 	$750,000
	 	 	 	 	 
	March 31, 2010	 	$1,650,000	 	$750,000
	 	 	 	 	 
	June 30, 2010	 	$1,650,000	 	$750,000
	 	 	 	 	 
	September 30, 2010	 	$1,650,000	 	$750,000
	 	 	 	 	 
	December 31, 2010	 	$1,650,000	 	$750,000
	 	 	 	 	 
	March 31, 2011	 	$1,650,000	 	$750,000
	 	 	 	 	 
	June 30, 2011	 	$1,650,000	 	$750,000
	 	 	 	 	 
	September 30, 2011	 	$1,650,000	 	$750,000
	 	 	 	 	 
	December 31, 2011	 	$1,650,000	 	$750,000
	 	 	 	 	 
	March 31, 2012	 	$1,650,000	 	$750,000

 

 

 

	 	 	 	 	 
	 	 	 	 	Canadian Term Loan
	Date	 	U.S. Term Loan Amount	 	Amount
	 	 	 	 	 
	June 30, 2012	 	$1,650,000	 	$750,000
	 	 	 	 	 
	September 30, 2012	 	$1,650,000	 	$750,000
	 	 	 	 	 
	December 31, 2012	 	$1,650,000	 	$750,000
	 	 	 	 	 
	March 31, 2013	 	$1,650,000	 	$750,000
	 	 	 	 	 
	June 30, 2013	 	$1,650,000	 	$750,000
	 	 	 	 	 
	September 30, 2013	 	$1,650,000	 	$750,000
	 	 	 	 	 
	December 31, 2013	 	$1,650,000	 	$750,000
	 	 	 	 	 
	March 31, 2014	 	$1,650,000	 	$750,000
	 	 	 	 	 
	June 30, 2014	 	$1,650,000	 	$750,000
	 	 	 	 	 
	Final Maturity Date	 	Remaining outstanding principal	 	Remaining outstanding principal

 

 

 

Annex III

Mandatory Cost Formula

     1. The Mandatory Cost is an addition to the interest rate to compensate Lenders for the cost
of compliance with (a) the requirements of the Bank of England and/or the Financial Services
Authority (or, in either case, any other authority which replaces all or any of its functions) or
(b) the requirements of the European Central Bank.

     2. On the first day of each Interest Period (or as soon as possible thereafter) the
Administrative Agent shall calculate, as a percentage rate, a rate (the “Additional Cost Rate”) for
each Lender, in accordance with the paragraphs set out below. The Mandatory Cost will be
calculated by the Administrative Agent as a weighted average of the Lenders’ Additional Cost Rates
(weighted in proportion to the percentage participation of each Lender in the relevant Loan) and
will be expressed as a percentage rate per annum.

     3. The Additional Cost Rate for any Lender lending from a Facility Office in a Participating
Member State will be the percentage notified by that Lender to the Administrative Agent. This
percentage will be certified by that Lender in its notice to the Administrative Agent to be its
reasonable determination of the cost (expressed as a percentage of that Lender’s participation in
all Loans made from that Facility Office) of complying with the minimum reserve requirements of the
European Central Bank in respect of loans made from that Facility Office.

     4. The Additional Cost Rate for any Lender lending from a Facility Office in the United
Kingdom will be calculated by the Administrative Agent as follows:

     (a) in relation to a Loan in GBP:

	 	 	 	 	 
	 
	 	AB + C(B - D) + E x 0.01	 	per cent. per annum
	 

	 	100 - (A + C)	 
	 

	 	 	 	 

     (b) in relation to a Loan in any currency other than GBP:

	 	 	 	 	 	 	 
	 

	 	 	E x 0.01	 	 	per cent. per annum
	 

	 	 	300	 
	 

	 	 	 	 	 	 

     Where:

     A is the percentage of Eligible Liabilities (assuming these to be in excess of any stated
minimum) which that Lender is from time to time required to maintain as an interest free cash ratio
deposit with the Bank of England to comply with cash ratio requirements.

     B is the percentage rate of interest (excluding the Applicable Margin and the Mandatory Cost
and, if the Loan is an Unpaid Sum, the additional rate of interest specified in Section
2.06(c)) payable for the relevant Interest Period on the Loan.

 

 

 

     C is the percentage (if any) of Eligible Liabilities which that Lender is required from time
to time to maintain as interest bearing Special Deposits with the Bank of England.

     D is the percentage rate per annum payable by the Bank of England to the Administrative Agent
(or such other bank as may be designated by the Administrative Agent in consultation with Borrower)
on interest bearing Special Deposits.

     E is designed to compensate Lenders for amounts payable under the Fees Rules and is calculated
by the Administrative Agent as being the average of the most recent rates of charge supplied by the
Reference Banks to the Administrative Agent pursuant to paragraph 7 below and expressed in GBP per
£1 million.

     5. For the purposes of this Schedule:

     (a) “Eligible Liabilities” and “Special Deposits” have the meanings given to them from time to
time under or pursuant to the Bank of England Act 1998 or (as may be appropriate) by the Bank of
England;

     (b) “Facility Office” means the office or offices notified by a Lender to the Administrative
Agent in writing on or before the date it becomes a Lender (or, following that date, by not less
than five Business Days’ written notice) as the office or offices through which it will perform its
obligations under this Agreement;

     (c) “Fees Rules” means the rules on periodic fees contained in the FSA Supervision Manual or
such other law or regulation as may be in force from time to time in respect of the payment of fees
for the acceptance of deposits;

     (d) “Fee Tariffs” means the fee tariffs specified in the Fees Rules under the activity group
A.1 Deposit acceptors (ignoring any minimum fee or zero rated fee required pursuant to the Fees
Rules but taking into account any applicable discount rate);

     (e) “Reference Banks” means, in relation to each of the LIBOR Rate and Mandatory Cost, the
principal office in Stamford, Connecticut of UBS AG, Stamford Branch, or such other bank or banks
as may be designated by the Administrative Agent in consultation with Borrower;

     (f) “Tariff Base” has the meaning given to it in, and will be calculated in accordance with,
the Fees Rules; and

     (g) “Unpaid Sum” means any sum due and payable but unpaid by any Loan Party under the Loan
Documents.

     6. In application of the above formulae, A, B, C and D will be included in the formulae as
percentages (i.e. 5 per cent. will be included in the formula as 5 and not as 0.05). A negative
result obtained by subtracting D from B shall be taken as zero. The resulting figures shall be
rounded to four decimal places.

     7. If requested by the Administrative Agent, each Reference Bank shall, as soon as practicable
after publication by the Financial Services Authority, supply to the Administrative

 

 

 

Agent, the rate of charge payable by that Reference Bank to the Financial Services Authority
pursuant to the Fees Rules in respect of the relevant financial year of the Financial Services
Authority (calculated for this purpose by that Reference Bank as being the average of the Fee
Tariffs applicable to that Reference Bank for that financial year) and expressed in GBP per £1
million of the Tariff Base of that Reference Bank.

     8. Each Lender shall supply any information required by the Administrative Agent for the
purpose of calculating its Additional Cost Rate. In particular, but without limitation, each
Lender shall supply the following information on or prior to the date on which it becomes a Lender:

     (a) the jurisdiction of its Facility Office; and

     (b) any other information that the Administrative Agent may reasonably require for such
purpose.

     Each Lender shall promptly notify the Administrative Agent of any change to the information
provided by it pursuant to this paragraph.

     9. The percentages of each Lender for the purpose of A and C above and the rates of charge of
each Reference Bank for the purpose of E above shall be determined by the Administrative Agent
based upon the information supplied to it pursuant to paragraphs 7 and 8 above and on the
assumption that, unless a Lender notifies the Administrative Agent to the contrary, each Lender’s
obligations in relation to cash ratio deposits and Special Deposits are the same as those of a
typical bank from its jurisdiction of incorporation with a Facility Office in the same jurisdiction
as its Facility Office.

     10. The Administrative Agent shall have no liability to any person if such determination
results in an Additional Cost Rate which over or under compensates any Lender and shall be entitled
to assume that the information provided by any Lender or Reference Bank pursuant to paragraphs 3, 7
and 8 above is true and correct in all respects.

     11. The Administrative Agent shall distribute the additional amounts received as a result of
the Mandatory Cost to the Lenders on the basis of the Additional Cost Rate for each Lender based on
the information provided by each Lender and each Reference Bank pursuant to paragraphs 3, 7 and 8
above.

     12. Any determination by the Administrative Agent pursuant to this Schedule in relation to a
formula, the Mandatory Cost, an Additional Cost Rate or any amount payable to a Lender shall, in
the absence of manifest error, be conclusive and binding on all parties to this Agreement.

     13. The Administrative Agent may from time to time, after consultation with Borrower and the
Lenders, determine and notify to all parties to this Agreement any amendments which are required to
be made to this Annex III in order to comply with any change in law, regulation or any
requirements from time to time imposed by the Bank of England, the Financial Services Authority or
the European Central Bank (or, in any case, any other authority which
replaces all or any of its functions) and any such determination shall, in the absence of
manifest error, be conclusive and binding on all parties to this Agreement.

 

 

 

EXHIBIT A

Form of

ADMINISTRATIVE QUESTIONNAIRE

NOVELIS INC.

NOVELIS CORPORATION

	 	 	 	 	 
	Agent Address:

	 	UBS AG, Stamford Branch
	 	Return form to:
	 

	 	677 Washington Boulevard
	 	Attention: Christopher Gomes
	 

	 	Stamford, Connecticut 06901
	 	Telephone: (203) 719-3000
	 

	 	 	 	Facsimile: (203) 719-3180
	 

	 	 	 	E-mail: Christopher.Gomes@UBS.com

It is very important that all of the requested information be completed accurately and that
this
questionnaire be returned promptly. If your institution is sub-allocating its allocation, please
fill out an
administrative questionnaire for each legal entity.

Legal Name of Lender to appear in Documentation:

 

Signature Block Information:
 

	 	 	 	 	 	 	 	 	 	 	 
	 

	 	•          Signing Credit Agreement
	 	o     Yes
	 	
	 	o     No
	 	
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	•          Coming in via Assignment
	 	o     Yes
	 	
	 	o     No
	 	
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	Type of Lender:	 	 	 	 	 	 	 	 
	 

	 	 
	 	 	 	 	 	 	 	 

(Bank, Asset Manager, Broker/Dealer, CLO/CDO; Finance Company, Hedge Fund, Insurance, Mutual Fund,
Pension Fund, Other Regulated Investment Fund, Special Purpose Vehicle, Other- please specify)

Lender Parent:
 

	 	 	 
	Domestic Address	 	Eurocurrency Address
	 	 	 
	 
	 	 
	 	 	 
	 
	 	 
	 	 	 

EXHIBIT A-1

 

	 	 	 	 	 	 	 
	 	 	Primary Credit Contact	 	Secondary Credit Contact	 	 
	 
	Name:

	 	 
	 	 	 	 
	 

	 	 
	 	 	 	 
	 
	 	 	 	 	 	 
	Company:

	 	 
	 	 	 	 
	 

	 	 
	 	 	 	 
	 
	 	 	 	 	 	 
	Title:

	 	 
	 	 	 	 
	 

	 	 
	 	 	 	 
	 
	 	 	 	 	 	 
	Address:

	 	 
	 	 	 	 
	 

	 	 
	 	 	 	 
	 
	 
	 	 	 	 	 	 
	 

	 	 
	 	 	 	 
	 
	 	 	 	 	 	 
	Telephone:

	 	 
	 	 	 	 
	 

	 	 
	 	 	 	 
	 
	 	 	 	 	 	 
	Facsimile:

	 	 
	 	 	 	 
	 

	 	 
	 	 	 	 
	 
	 	 	 	 	 	 
	E-Mail Address:

	 	 
	 	 	 	 
	 

	 	 
	 	 	 	 

	 	 	 	 	 	 	 	 	 
	 	 	Primary Operations Contact	 	Secondary Operations Contact	 	 	 	 
	 
	Name:

	 	 
	 	 

	 

	 	 
	 	 
	 
	 	 	 	 
	Company:

	 	 
	 	 
	 

	 	 
	 	 
	 
	 	 	 	 
	Title:

	 	 
	 	 
	 

	 	 
	 	 
	 
	 	 	 	 
	Address:

	 	 
	 	 
	 

	 	 
	 	 
	 
	 
	 	 	 	 
	 

	 	 
	 	 
	 
	 	 	 	 
	Telephone:

	 	 
	 	 
	 

	 	 
	 	 
	 
	 	 	 	 
	Facsimile:

	 	 
	 	 
	 

	 	 
	 	 
	 
	 	 	 	 
	E-Mail Address:

	 	 
	 	 
	 

	 	 
	 	 
	 
	 	 	 	 
	 

	 	Bid Contact	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	Name:

	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	Company:

	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	Title:

	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	Address:

	 	 	 	 
	 

	 	 	 	 
	 
	 
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	Telephone:

	 	 	 	 
	 

	 	 	 	 
	 
	Facsimile:

	 	 
	 	 	 	 
	 

	 	 
	 	 	 	 
	 
	 	 	 	 
	E-Mail Address:

	 	 	 	 
	 

	 	 	 	 
	 
	 
	 

	 	 
	 	 	 	 

EXHIBIT A-2

 

Lender’s Domestic Wire Instructions

	 	 	 
	Bank Name:

	 	 
	 

	 	 
	 
	 	 
	ABA/Routing No.:

	 	 
	 

	 	 
	 
	 	 
	Account Name:

	 	 
	 

	 	 
	 
	 	 
	Account No.:

	 	 
	 

	 	 
	 
	 	 
	FFC Account Name:

	 	 
	 

	 	 
	 
	 	 
	FFC Account No.:

	 	 
	 

	 	 
	 
	 	 
	Attention:

	 	 
	 

	 	 
	 
	 	 
	Reference:

	 	 
	 

	 	 

Lender’s Foreign Wire Instructions

	 	 	 
	Currency:

	 	 
	 

	 	 
	 
	 	 
	Bank Name:

	 	 
	 

	 	 
	 
	 	 
	Swift/Routing No.:

	 	 
	 

	 	 
	 
	 	 
	Account Name:

	 	 
	 

	 	 
	 
	 	 
	Account No.:

	 	 
	 

	 	 
	 
	 	 
	FFC Account Name:

	 	 
	 

	 	 
	 
	 	 
	FFC Account No.:

	 	 
	 

	 	 
	 
	 	 
	Attention:

	 	 
	 

	 	 
	 
	 	 
	Reference:

	 	 
	 

	 	 

Agent’s Wire Instructions

	 	 	 
	Bank Name:

	 	UBS AG
	 
	 	 
	ABA/Routing No.:

	 	026-007-993
	 
	 	 
	Account No.:

	 	860050-524
	 
	 	 
	Attention:

	 	Christopher Gomes
	 
	 	 
	Reference:

	 	Novelis

EXHIBIT A-3

 

Tax Documents

NON-U.S. LENDER INSTITUTIONS:

I. Corporations:

If your institution is incorporated outside of the United States for U.S. federal income tax
purposes, and is the beneficial owner of the interest and other income it receives, you must
complete one of the following three tax forms, as applicable to your institution: a.) Form W-8BEN
(Certificate of Foreign Status of Beneficial Owner), b.) Form W-8ECI (Income Effectively Connected
to a U.S. Trade or Business), or c.) Form W-8EXP (Certificate of Foreign Government or Governmental
Agency).

A U.S. taxpayer identification number is required for any institution submitting Form W-8ECI. It is
also required on Form W-8BEN for certain institutions claiming the benefits of a tax treaty with
the U.S. Please refer to the instructions when completing the form applicable to your institution.
In addition, please be advised that U.S. tax regulations do not permit the acceptance of faxed
forms. An original tax form must be submitted.

II. Flow-Through Entities:

If your institution is organized outside the U.S., and is classified for U.S. federal income tax
purposes as either a Partnership, Trust, other non- U.S. flow-through entity or Qualified or
Non-Qualified Intermediary, an original Form W-8IMY (Certificate of Foreign Intermediary, Foreign
Flow-Through Entity, or Certain U.S. Branches for United States Tax Withholding) must be completed
by the intermediary together with a withholding statement. Subject to applicable exceptions
(including an exception for certain U.S. branches of foreign banks), Non-Qualified Intermediaries
and Foreign Flow-Through Entities other than “foreign withholding partnerships” are generally
required to include tax forms for each of the underlying beneficial owners.

Please refer to the instructions when completing the form applicable to your institution. Original
tax form(s) must be submitted within 90 days after the first payment of income.

U.S.
LENDER INSTITUTIONS:

If your
institution is incorporated or organized within the United States,  we request that you
submit an original Form W-9 (Request for Taxpayer Identification Number and Certification).

Pursuant to the language contained in the tax section of the Credit Agreement, the applicable tax
form for your institution must be completed and returned prior to the first payment of income.
Failure to provide the proper tax form when requested may subject your institution to U.S. tax
withholding.

EXHIBIT A-4

 

EXHIBIT B

Form of

Assignment and Assumption

This Assignment and Assumption (the “Assignment and Assumption”) is dated as of the Effective Date
set forth below and is entered into by and between [Insert name of Assignor] (the “Assignor”) and
[Insert name of Assignee] (the “Assignee”). Capitalized terms used but not defined herein shall
have the meanings given to them in the Credit Agreement defined below, receipt of a copy of which
is hereby acknowledged by the Assignee. The Standard Terms and Conditions set forth in Annex 1
attached hereto are hereby agreed to and incorporated herein by reference and made a part of this
Assignment and Assumption as if set forth herein in full.

For an agreed consideration, the Assignor hereby irrevocably sells and assigns to the Assignee, and
the Assignee hereby irrevocably purchases and assumes from the Assignor, subject to and in
accordance with the Standard Terms and Conditions and the Credit Agreement, as of the Effective
Date inserted by the Administrative Agent as contemplated below, (i) all of the Assignor’s rights
and obligations in its capacity as a Lender under the Credit Agreement and any other documents or
instruments delivered pursuant thereto to the extent related to the amount and percentage interest
identified below of all of such outstanding rights and obligations of the Assignor under the
respective facilities identified below (including participations in any Letters of Credit and
Swingline Loans included in such facilities) and (ii) to the extent permitted to be assigned under
applicable law, all claims, suits, causes of action and any other right of the Assignor (in its
capacity as a Lender) against any person, whether known or unknown, arising under or in connection
with the Credit Agreement, any other documents or instruments delivered pursuant thereto or the
loan transactions governed thereby or in any way based on or related to any of the foregoing,
including, but not limited to, contract claims, tort claims, malpractice claims, statutory claims
and all other claims at law or in equity related to the rights and obligations sold and assigned
pursuant to clause (i) above (the rights and obligations sold and assigned pursuant to clauses (i)
and (ii) above being referred to herein collectively as, the “Assigned Interest”). Such sale and
assignment is without recourse to the Assignor and, except as expressly provided in this Assignment
and Assumption, without representation or warranty by the Assignor.

	 	 	 	 	 
	1.

	 	Assignor:
	 	 
	 

	 	 	 	 

	 
	 	 	 	 
	2.

	 	Assignee:
	 	 
	 

	 	 	 	 

	 

	 	 	 	[and is an Affiliate/Approved Fund of [identify Lender]1]
	 
	 	 	 	 
	3.

	 	Borrower(s):
	 	[Novelis, Inc.][Novelis Corporation]
	 
	 	 	 	 
	4.

	 	Administrative Agent:
	 	UBS AG, Stamford Branch, as the administrative agent under the
Credit Agreement
	 
	 	 	 	 
	5.

	 	Credit Agreement:
	 	The Credit Agreement, dated as of July 6, 2007 (as amended, amended
and restated, supplemented or otherwise modified from time to time, the
“Credit Agreement”), among NOVELIS INC., a corporation formed under
the Canada Business Corporations Act, NOVELIS

 

			
	1	 	Select as applicable.

EXHIBIT B-1

 

	 	 	 	 	 
	 

	 	 	 	CORPORATION, a Texas corporation, AV ALUMINUM INC., a corporation formed
under the Canada Business Corporations Act, the Subsidiary Guarantors, the
Lenders, UBS AG, STAMFORD BRANCH, as administrative agent for the Lenders,
UBS AG, STAMFORD BRANCH, as collateral agent for the Secured Parties, the
other agents party thereto, and ABN AMRO INCORPORATED and UBS SECURITIES
LLC, as joint lead arrangers and joint bookmanagers.
	 
	 	 	 	 
	6.

	 	Assigned Interest:	 	 

	 	     	 	 	 	     	 	 	 	     	 	 	 
	 	 	Aggregate Amount	 	Amount of [U.S.	 	 
	 	 	of [U.S. Term Loan	 	Term Loan	 	Percentage Assigned
	 	 	Commitment/U.S.	 	Commitment/U.S.	 	of [U.S. Term Loan
	 	 	Term	 	Term	 	Commitment/U.S.
	 	 	Loans][Canadian	 	Loans][Canadian	 	Term
	 	 	Term Loan	 	Term Loan	 	Loans][Canadian
	 	 	Commitment/Canadian 	 	Commitment/Canadian	 	Term Loan
	 	 	Term Loans]	 	 Term Loans]	 	Commitment/Canadian
	Facility Assigned	 	for all Lenders	 	Assigned	 	Term Loans]2
	[U.S. Term Loans]
	 	$	 	 	 	$	 	 	 	 	%	 
	[Canadian Term
Loans]
	 	 	 	 	 	 	 	 	 	 	 	 

[7.    Trade Date:                    ]3

 

			
	2	 	Set forth, to at least 9 decimals, as a percentage of the applicable Commitment/Loans of all Lenders thereunder.
	 
	3	 	To be completed if the Assignor and the Assignee intend that the minimum assignment amount is to be
determined as of the Trade Date.

EXHIBIT B-2

 

Effective Date:                           , 20      [TO BE INSERTED BY ADMINISTRATIVE AGENT AND WHICH SHALL BE THE EFFECTIVE DATE
OF RECORDATION OF TRANSFER IN THE REGISTER THEREFOR.]4

The terms set forth in this Assignment and Assumption are hereby agreed to:

	 	 	 	 	 
	 	ASSIGNOR

      [NAME OF ASSIGNOR]

 	 
	 	By:  	 	 
	 	 	Title: 	 
	 	 	 	 
	 	ASSIGNEE

      [NAME OF ASSIGNEE]

 	 
	 	By:  	 	 
	 	 	Title: 	 
	 	 	 	 
	 

Consented to and Accepted:

[NOVELIS INC.,

     as Administrative Borrower]5

	 	 	 	 	 
	By:

	 	 
 

Name:
	 	 
	 

	 	Title:	 	 

UBS AG, STAMFORD BRANCH,

     as Administrative Agent

	 	 	 	 	 
	By:

	 	 
 

Name:
	 	 
	 

	 	Title:	 	 

 

			
	4	 	This date may not be fewer than 5 Business days after the date of assignment unless
the Administrative Agent otherwise agrees.
	 
	5	 	To be added only if the approval of such person is required by the terms of the
Credit Agreement.

EXHIBIT B-3

 

ANNEX 1 to Assignment and Assumption

[BORROWER]

CREDIT AGREEMENT

STANDARD TERMS AND CONDITIONS FOR

ASSIGNMENT AND ASSUMPTION

1. Representations and Warranties.

1.1 Assignor. The Assignor (a) represents and warrants that (i) it is the legal and
beneficial owner of the Assigned Interest, (ii) the Assigned Interest is free and clear of any
lien, encumbrance or other adverse claim and (iii) it has full power and authority, and has taken
all action necessary, to execute and deliver this Assignment and Assumption and to consummate the
transactions contemplated hereby; and (b) assumes no responsibility with respect to (i) any
statements, warranties or representations made in or in connection with the Credit Agreement or any
other Loan Document, (ii) the execution, legality, validity, enforceability, genuineness,
sufficiency or value of the Loan Documents or any collateral thereunder, (iii) the financial
condition of the Loan Parties, any of their Subsidiaries or Affiliates or any other person
obligated in respect of any Loan Document or (iv) the performance or observance by the Loan
Parties, any of their Subsidiaries or Affiliates or any other person of any of their respective
obligations under any Loan Document.

1.2. Assignee. The Assignee (a) represents and warrants that (i) it has full power and
authority, and has taken all action necessary, to execute and deliver this Assignment and
Assumption and to consummate the transactions contemplated hereby and to become a Lender under the
Credit Agreement, (ii) it meets all requirements of an Eligible Assignee under the Credit Agreement
(subject to receipt of such consents as may be required under the Credit Agreement), (iii) from and
after the Effective Date, it shall be bound by the provisions of the Credit Agreement as a Lender
thereunder and, to the extent of the Assigned Interest, shall have the obligations of a Lender
thereunder, (iv) it is sophisticated with respect to decisions to acquire assets of the type
represented by the Assigned Interest and either it, or the Person exercising discretion in making
its decision to acquire the Assigned Interest, is experienced in acquiring assets of such type, (v)
it has received a copy of the Credit Agreement, together with copies of the most recent financial
statements delivered pursuant to Sections 4.01(e) or 5.01 thereof, as applicable, and such other
documents and information as it has deemed appropriate to make its own credit analysis and decision
to enter into this Assignment and Assumption and to purchase the Assigned Interest on the basis of
which it has made such analysis and decision independently and without reliance on the
Administrative Agent or any other Lender, (vi) if it is not already a Lender under the Credit
Agreement, attached to the Assignment and Assumption an Administrative Questionnaire in the form of
Exhibit A to the Credit Agreement, (vii) to the extent required by the Credit Agreement,
the Administrative Agent has received a processing and recordation fee of $3,500 as of the
Effective Date and (viii) attached to the Assignment and Assumption is any documentation required
to be delivered by it pursuant to Section 2.15 of the Credit Agreement, duly completed and executed
by the Assignee; and (b) agrees that (i) it will, independently and without reliance on any Agent,
the Assignor or any other Lender, and based on such documents and information as it shall deem
appropriate at the time, continue to make its own credit decisions in taking or not taking action
under the Loan Documents, (ii) it will perform in accordance with their terms all of the
obligations that by the terms of the Loan Documents are required to be performed by it as a Lender,
and (iii) it will make or invest in its Commitments and Loans for its own account in the ordinary
course and without a view to distribution of such Commitments and Loans within the meaning of the
Securities Act or the Exchange Act, or other federal securities laws (it being understood that,
subject to the provisions of

EXHIBIT B-ANNEX 1-1

 

 

Sections 2.16(c),
11.02(d) and 11.04 of the Credit Agreement, the disposition of
such Commitments and Loans or any interests therein shall at all times remain within its exclusive
control).

2. Payments. From and after the Effective Date, the Administrative Agent shall make all
payments in respect of the Assigned Interest (including payments of principal, interest, fees and
other amounts) to the Assignor for amounts that have accrued to but excluding the Effective Date
and to the Assignee for amounts that have accrued from and after the Effective Date.

3. General Provisions. This Assignment and Assumption shall be binding upon, and inure to
the benefit of, the parties hereto and their respective successors and assigns. This Assignment and
Assumption may be executed in any number of counterparts, which together shall constitute one
instrument. Delivery of an executed counterpart of a signature page of this Assignment and
Assumption by telecopy shall be effective as delivery of a manually executed counterpart of this
Assignment and Assumption. This Assignment and Assumption shall be construed in accordance with and
governed by, the law of the State of New York without regard to conflicts of principles of law that
would require the application of the laws of another jurisdiction.

EXHIBIT B-ANNEX 1-2

 

 

EXHIBIT C

Form of

BORROWING REQUEST

UBS AG, Stamford Branch,

    as Administrative Agent for

the Lenders referred to below,

677 Washington Boulevard

Stamford, Connecticut 06901

Facsimile: (203) 719-3180

Attention: Christopher Gomes

Re: NOVELIS

[Date]

Ladies and Gentlemen:

Reference
is made to the Credit Agreement, dated as of July 6, 2007 (as amended, amended and
restated, supplemented or otherwise modified from time to time, the “Credit Agreement”),
among NOVELIS INC., a corporation formed under the Canada Business Corporations Act, NOVELIS
CORPORATION, a Texas corporation, AV ALUMINUM INC., a corporation formed under the Canada Business
Corporations Act, the Subsidiary Guarantors (such term and each other capitalized term used but not
defined herein having the meaning given to it in the Credit Agreement), the Lenders, UBS AG,
STAMFORD BRANCH, as administrative agent for the Lenders, UBS AG, STAMFORD BRANCH, as collateral
agent for the Secured Parties, the other agents party thereto, and ABN AMRO INCORPORATED and UBS
SECURITIES LLC, as joint lead arrangers and joint bookmanagers. Administrative Borrower hereby
gives you notice pursuant to Section 2.03 of the Credit Agreement that it requests a Borrowing
under the Credit Agreement, and in that connection sets forth below the terms on which such
Borrowing is requested to be made:

	 	 	 	 	 
	(A)

	 	Class of Borrowing
	 	[U.S. Term Loan]
	 
	 	 	 	 
	 

	 	 	 	[Canadian Term Loan]
	 
	 	 	 	 
	(B)

	 	Principal amount of
Borrowing1
	 	                                                            
	 
	 	 	 	 
	(C)

	 	Date of Borrowing

(which is a Business Day)

	 	                                                            
	 
	 	 	 	 
	(D)

	 	Type of Borrowing
	 	[ABR] [Eurocurrency]

 

			
	1	 	ABR and Eurocurrency Loans must be in an amount that is at least $5,000,000 and an
integral multiple of $1,000,000 or, if less, equal to the remaining available balance of the
applicable Commitments.

EXHIBIT C-1

 

	 	 	 	 	 
	(E)

	 	Interest Period and the last day thereof2
	 	                                                            
	 
	 	 	 	 
	(F)

	 	Funds are requested to be disbursed to

Borrower’s account with [                    ]

(Account No.
             ).
	 	 

Administrative Borrower hereby represents and warrants that the conditions to lending specified in
Sections 4.02(b), (c) and (d) of the Credit Agreement are satisfied as of the date hereof.

[Signature Page Follows]

 

			
	2	 	Shall be subject to the definition of “Interest Period” in the Credit Agreement.

EXHIBIT C-2

 

	 	 	 	 	 
	 	NOVELIS INC., as Administrative Borrower

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

EXHIBIT C-3

 

EXHIBIT D

Form of

COMPLIANCE CERTIFICATE

     I, [                    ], the [Financial Officer] of [                    ] (in such capacity and not in my individual capacity),
hereby certify that, with respect to that certain Credit Agreement dated as of July 6, 2007
(as amended, amended and restated, supplemented or otherwise modified from time to time, the
“Credit Agreement”; all of the defined terms in the Credit Agreement are incorporated
herein by reference) among NOVELIS INC., a corporation formed under the Canada Business
Corporations Act, NOVELIS CORPORATION, a Texas corporation, AV ALUMINUM INC., a corporation
formed under the Canada Business Corporations Act, the Subsidiary Guarantors (such term and
each other capitalized term used but not defined herein having the meaning given to it in the
Credit Agreement), the Lenders, UBS AG, STAMFORD BRANCH, as administrative agent for the
Lenders, UBS AG, STAMFORD BRANCH, as collateral agent for the Secured Parties, the other
agents party thereto, and ABN AMRO INCORPORATED and UBS SECURITIES LLC, as joint lead
arrangers and joint bookmanagers:

     (a) [Attached hereto as Schedule 1 are detailed calculations setting forth
the Borrower’s Excess Cash Flow.]1

     (b) Attached hereto as Schedule 2 is the report of [accounting
firm]2

     (c) No Default has occurred under the Credit Agreement which has not been previously
disclosed, in writing, to the Administrative Agent pursuant to a Compliance
Certificate.3

     (d) Attached hereto as Schedule 3 are detailed calculations showing a
reconciliation of Consolidated EBITDA to the net income set forth on the statement of income,
on a quarterly basis.

[Signature Page Follows]

 

			
	1	 	To accompany annual financial statements only.
	 
	2	 	To accompany annual financial statements only, to the extent permitted under
applicable accounting guidelines. The report must opine or certify that, with respect to its
regular audit of such financial statements, which audit was conducted in accordance with GAAP,
the accounting firm obtained no knowledge that a Default has occurred or, if in the opinion of
such accounting firm such a Default has occurred, specifying the nature and extent thereof.
	 
	3	 	If a Default shall have occurred, an explanation specifying the nature and extent of
such Default shall be provided on a separate page together with an explanation of the corrective
action taken or proposed to be taken with respect thereto (include, as applicable, information
regarding actions, if any, taken since prior certificate).

EXHIBIT D-1

 

Dated
this [  ] day of [          ], 20[ ].

	 	 	 	 	 
	 	[                                                                                ]

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	[Financial Officer] 	 
	 

EXHIBIT D-2

 

SCHEDULE 1

Excess Cash Flow

	 	 	 
	Excess Cash Flow Calculation:
	 	 
	 
	 	 
	(A) Consolidated Interest Expense calculation for the Test Period ended [     ], 20[ ]:
	 	 
	 
	 	 
	total consolidated interest expense of Canadian Borrower and its Subsidiaries for such period
determined on a consolidated basis in accordance with GAAP

	 	                                        
	 
	 	 
	plus, without duplication:
	 	 
	 
	 	 
	(a) imputed interest on Capital Lease Obligations and Attributable Indebtedness of Canadian
Borrower and its Subsidiaries for such period;

	 	                                        
	 
	 	 
	(b) commissions, discounts and other fees and charges owed by Canadian Borrower or any of its
Subsidiaries with respect to letters of credit securing financial obligations, bankers’
acceptance financing and receivables financings for such period;

	 	                                        
	 
	 	 
	(c) amortization of debt issuance costs, debt discount or premium and other financing fees and
expenses incurred by Canadian Borrower or any of its Subsidiaries for such period;

	 	                                        
	 
	 	 
	(d) all interest paid or payable with respect to discontinued operations of Canadian Borrower
or any of its Subsidiaries for such period;

	 	                                        
	 
	 	 
	(e) the interest portion of any deferred payment obligations of Canadian Borrower or any
of its Subsidiaries for such period.

	 	                                        
	 
	 	 
	   Consolidated Interest Expense

	 	                                        
	 
	 	 
	(B) Consolidated EBITDA for the Test Period ended
[        ], 20[ ]:

	 	                                        
	 
	 	 
	Consolidated
Net Income for the Test Period ended
[     ], 20[ ]

	 	                                        

EXHIBIT D-SCHEDULE 1-1

 

 

	 	 	 
	adding thereto, in each case only to the extent (and in the same proportion) deducted in
determining such Consolidated Net Income and without duplication:
	 	 
	 
	 	 
	(a) Consolidated Interest Expense for such period,

	 	                                        
	 
	 	 
	(b) Consolidated Amortization Expense for such period,

	 	                                        
	 
	 	 
	(c) Consolidated Depreciation Expense for such period,

	 	                                        
	 
	 	 
	(d) Consolidated Tax Expense for such period,

	 	                                        
	 
	 	 
	(e) non-recurring cash expenses and charges relating to the Hindalco Acquisition and the
Refinancing,

	 	                                        
	 
	 	 
	(f) restructuring charges in an amount not to exceed $15 million in the aggregate during the term
of the Credit Agreement,

	 	                                        
	 
	 	 
	(g) the aggregate amount of all other non-cash charges reducing Consolidated Net Income (excluding
any non-cash charge that results in an accrual of a reserve for cash charges in any future period)
for such period

	 	                                        
	 
	 	 
	subtracting therefrom,
	 	 
	 
	 	 
	(a) the aggregate amount of all non-cash items increasing Consolidated Net Income (other than
the accrual of revenue or recording of receivables in the ordinary course of business) for such
period

	 	                                        
	 
	 	 
	excluding therefrom,
	 	 
	 
	 	 
	(a)  any gain (or loss), together with any related provisions for taxes on any such gain (or the
tax effect of any such loss), realized during such period by Canadian Borrower or any of its
Subsidiaries upon any Asset Sale (other than any dispositions in the ordinary course of
business) by Canadian Borrower or any of its Subsidiaries,

	 	                                        
	 
	 	 
	(b)  gains and losses due solely to fluctuations in currency values and the related tax effects
determined in accordance with GAAP for such period,

	 	                                        

EXHIBIT D-SCHEDULE 1-2

 

 

	 	 	 
	(c)  earnings or losses resulting from any reappraisal, revaluation or write-up or write-down of
assets,

	 	                                        
	 
	 	 
	(d)  any one-time increase or decrease to net income that is required to be recorded because of
the adoption of new accounting policies, practices or standards required by GAAP, 

	 	                                        
	 
	 	 
	(e)  unrealized gains and losses with respect to Hedging Obligations for such period, and 

	 	                                        
	 
	 	 
	(f)  any extraordinary gain (or extraordinary loss), together with any related provision for taxes
on any such gain (or the tax effect of any such loss), recorded or recognized by Canadian
Borrower or any of its Subsidiaries during such period

	 	                                        
	 
	 	 
	  Consolidated EBITDA

	 	                                        
	 
	 	 
	(C)
Consolidated Adjusted EBITDA for the Test Period ended [     ], 20[ ]:
	 	 
	 
	 	 
	Consolidated EBITDA

	 	                                        
	 
	 	 
	plus, to the extent not otherwise included in Consolidated EBITDA:
	 	 
	 
	 	 
	(a) 100% of the net income of each Joint Venture Subsidiary and Logan for such period minus the
amount of any dividends or distributions paid to the holder of any interest (other than a Company)
in such Joint Venture Subsidiary or Logan during such period; and

	 	                                        
	 
	 	 
	(b) the Canadian Borrower’s proportionate share of EBITDA of Norf GmbH for such period

	 	                                        
	 
	 	 
	 Consolidated Adjusted EBITDA

	 	                                        
	 
	 	 
	(D) Excess Cash Flow for the Test Period ended [      ], 20[ ]:

	 	 
	 
	 	 
	Consolidated Adjusted EBITDA
	 	 
	 
	 	 
	minus, without duplication:

	 	                                        

 

1 

EXHIBIT D-SCHEDULE 1-3

 

 

	 	 	 
	(a) Debt Service for such Excess Cash Flow Period;

	 	                                        
	 
	 	 
	(b) (i) any voluntary prepayments of Term Loans, (ii) any voluntary prepayments of term loans
of NKL permitted under Section 6.01(m) of the Credit
Agreement, (iii) any voluntary
prepayments of Revolving Credit Loans to the extent accompanied by a simultaneous permanent
reduction in an equal amount of the Revolving Credit Commitments (and excluding any such reduction
to the extent relating to the entering into of a replacement Revolving Credit Agreement) and (iv)
any voluntary prepayments of revolving Indebtedness of NKL permitted under Section 6.01(m)
of the Credit Agreement to the extent accompanied by a simultaneous permanent reduction in an equal
amount of the commitments in respect of such Indebtedness (and excluding any such reduction to the
extent relating to the entering into of replacement revolving Indebtedness of NKL), in each case,
so long as such amounts are not already reflected in Debt Service, during such Excess Cash Flow
Period;

	 	                                        
	 
	 	 
	(c) Capital Expenditures during such Excess Cash Flow Period (excluding Capital Expenditures made
in such Excess Cash Flow Period where a certificate in the form contemplated by the following
clause (d) was previously delivered) that are paid in cash;

	 	                                        
	 
	 	 
	(d) Capital Expenditures that Canadian Borrower or any of its Subsidiaries shall, during such
Excess Cash Flow Period, become obligated to make but that are not made during such Excess Cash
Flow Period; provided that Canadian Borrower shall deliver a certificate to the
Administrative Agent not later than 90 days after the end of such Excess Cash Flow Period, signed
by a Responsible Officer of Canadian Borrower and certifying that such Capital Expenditures will be
made in the following Excess Cash Flow Period;

	 	                                        
	 
	 	 
	(e) the aggregate amount of Investments made in cash during such period pursuant to Sections
6.04(e), (h), (l), (m) and (r) of the Credit Agreement;

	 	                                        
	 
	 	 

EXHIBIT D-SCHEDULE 1-4

 

 

	 	 	 
	(f) (i) taxes of Canadian Borrower and its Subsidiaries that were paid in cash during such Excess
Cash Flow Period (excluding taxes paid in such Excess Cash Flow period where a certificate
contemplated by the following clause (ii) was previously delivered) and (ii) taxes of Canadian Borrower and its Subsidiaries that will be
paid within six months after the end of such Excess Cash Flow Period and for which reserves have
been established; provided that Borrower shall deliver a certificate to the Administrative
Agent not later than 90 days after the end of such Excess Cash Flow Period, signed by a Responsible
Officer of Borrower and certifying that such taxes will be paid within such six month period;

	 	                                        
	 
	 	 
	(g) the absolute value of the difference, if negative, of the amount of Net Working Capital
at the end of the prior Excess Cash Flow Period (or, in the case of the Excess Cash Flow Period for
the first complete fiscal year of Canadian Borrower commencing after the Closing Date, at the first
day of such Excess Cash Flow Period) over the amount of Net Working Capital at the end of such
Excess Cash Flow Period;

	 	                                        
	 
	 	 
	(h) to the extent added to determine Consolidated EBITDA and paid in cash during such Excess
Cash Flow Period, restructuring charges in an amount not to exceed $15 million during the term of
the Credit Agreement;

	 	                                        
	 
	 	 
	(i) losses excluded from the calculation of Consolidated EBITDA by operation of clauses
(z)(a) and (z)(f) of the definition thereof that are paid or realized in cash during such Excess
Cash Flow Period;

	 	                                        
	 
	 	 
	(j) Dividends paid in cash to Holdings during such Excess Cash Flow period in accordance
with Section 6.08(c) of the Credit Agreement; and

	 	                                        
	 
	 	 
	(k) to the extent added to determine Consolidated EBITDA, all items that did not result from
a cash payment to Canadian Borrower or any of its Subsidiaries on a consolidated basis during such
Excess Cash Flow Period;1

	 	                                        
	 
	 	 
	provided that any amount deducted pursuant of any of the foregoing clauses that will be
paid after the close of such Excess Cash Flow Period shall not be deducted again in a subsequent
Excess Cash Flow Period;

	 	 
	 
	 	 
	plus, without duplication:
	 	 

EXHIBIT D-SCHEDULE 1-5

 

 

	 	 	 
	(i) the difference, if positive, of the amount of Net Working Capital at the end of the
prior Excess Cash Flow Period (or, in the case of the Excess Cash Flow Period for the first
complete fiscal year of Canadian Borrower commencing after the Closing Date, at the first day of
such Excess Cash Flow Period) over the amount of Net Working Capital at the end of such Excess Cash
Flow Period;

	 	                                        
	 
	 	 
	(ii) (1) all net cash proceeds received during such Excess Cash Flow Period of (x) any equity
issuance by, or capital contribution to, Holdings, Canadian Borrower or any other Subsidiary of
Canadian Borrower to, or made by, persons other than Companies and (y) any Indebtedness (other than
Revolving Credit Loans), in each case, to the extent (directly or indirectly) used to finance (A)
Investments made pursuant to Sections 6.04(e), (h), (l), (m) and
(r) of the Credit Agreement, (B) voluntary prepayments of term loans of NKL (to the extent
such voluntary repayment of term loans of NKL is deducted from Excess Cash Flow pursuant to clause
(b)(ii) above), (C) voluntary repayments of Revolving Credit Loans (to the extent such voluntary
repayment of Revolving Credit Loans is deducted from Excess Cash Flow pursuant to clause (b)(iii)
above) or (D) voluntary repayments of revolving Indebtedness of NKL (to the extent such voluntary
repayment of revolving Indebtedness of NKL is deducted from Excess Cash Flow pursuant to clause
(b)(iv) above); (2) all net cash proceeds received during such Excess Cash Flow Period of (x) any
equity issuance by, or capital contribution to, Holdings, Canadian Borrower or any other Subsidiary
of Canadian Borrower to, or made by, persons other than Companies and (y) any Indebtedness (other
than Revolving Credit Loans), in each case, to the extent used to finance any Capital Expenditure;
and (3) all Net Cash Proceeds of Asset Sales utilized to make Capital Expenditures in such Excess
Cash Flow Period as permitted under Section 2.10(c) of the Credit Agreement;

	 	                                        
	 
	 	 
	(iii) to the extent any permitted Capital Expenditures referred to in clause (d) above do not occur
in the Excess Cash Flow Period specified in the certificate of Borrower provided pursuant to clause
(d) above, such amounts of Capital Expenditures that were not so made in the Excess Cash Flow
Period specified in such certificates;

	 	                                        
	 
	 	 
	(iv) to the extent any tax payments referred to in clause (f)(ii) above do not occur in the
Excess Cash Flow Period

	 	 

EXHIBIT D-SCHEDULE 1-6

 

 

	 	 	 
	specified in the certificate of Canadian Borrower provided pursuant to clause (f)(ii) above, such
amounts of tax payments that were not so made in the Excess Cash Flow Period specified in such
certificates;

	 	                                        
	 
	 	 
	(v) to the extent not reflected in Consolidated EBITDA for such Excess Cash Flow Period, any
return on or in respect of Investments received in cash during such period, which Investments were
made pursuant to Sections 6.04(e), (h),
(l), (m) and (r) of the
Credit Agreement (excluding any amounts of such Investments financed with the proceeds of (x)
equity issuances by, or capital contributions to, Holdings, Canadian Borrower or any other
Subsidiary of Canadian Borrower to, or made by, persons other than Companies or (y) Indebtedness
(other than Revolving Credit Loans));

	 	                                        
	 
	 	 
	(vi) if deducted in the computation of Consolidated EBITDA, interest income;

	 	                                        
	 
	 	 
	(vii) income and gains excluded from the calculation of Consolidated EBITDA in any period by
operation of clauses (z)(a) or (z)(f) of the definition thereof that are realized in cash during
such Excess Cash Flow Period (other than pursuant to a sale under Section 6.06(k) of the
Credit Agreement to the extent that the proceeds of such sale are reinvested in accordance with
Section 6.04(k) of the Credit Agreement during such Excess Cash Flow Period); and

	 	                                        
	 
	 	 
	(viii) to the extent subtracted in determining Consolidated EBITDA, all items that did not
result from a cash payment by Borrower or any of its Subsidiaries on a consolidated basis during
such Excess Cash Flow Period.

	 	                                        
	 
	 	 
	Excess Cash Flow

	 	                                        

EXHIBIT D-SCHEDULE 1-7

 

 

SCHEDULE
2

[Report of Accounting Firm]

[See attached]

EXHIBIT D-SCHEDULE 2-1

 

 

[SCHEDULE 3]

[Reconciliation of Consolidated EBITDA to Net Income]

[See attached]

EXHIBIT D-SCHEDULE 3-1

 

 

EXHIBIT E

Form of

INTEREST ELECTION REQUEST

UBS AG, Stamford Branch,

     as Administrative Agent for

the Lenders referred to below,

677 Washington Boulevard

Stamford, Connecticut 06901

Facsimile: (203) 719-3180

Attention: Christopher Gomes

[Date]

Re: Novelis

Ladies and Gentlemen:

This Interest Election Request is delivered to you pursuant to Section 2.08 of the Credit
Agreement, dated as of July 6, 2007 (as amended, amended and restated, supplemented or otherwise
modified from time to time, the “Credit Agreement”), among NOVELIS INC., a corporation formed under
the Canada Business Corporations Act, NOVELIS CORPORATION, a Texas corporation, AV ALUMINUM INC., a
corporation formed under the Canada Business Corporations Act, the Subsidiary Guarantors (such term
and each other capitalized term used but not defined herein having the meaning given to it in the
Credit Agreement), the Lenders, UBS AG, STAMFORD BRANCH, as administrative agent for the Lenders,
UBS AG, STAMFORD BRANCH, as collateral agent for the Secured Parties, the other agents party
thereto, and ABN AMRO INCORPORATED and UBS SECURITIES LLC, as joint lead arrangers and joint
bookmanagers.

The
Administrative Borrower hereby requests that on
[                    ]1
(the “Interest Election Date”),

1.
$[                    ] of the presently outstanding principal amount of the [U.S. Term Loans]
[Canadian Term Loans] [available/originally made on [                    ]],

2. [and all presently being maintained as/be issued as] [ABR Loans] [Eurocurrency Loans],

3. be [established as] [converted into] [continued as],

4. [Eurocurrency Loans having an Interest Period of [one/two/three/six] months] [ABR Loans].

 

			
	1	 	Shall be a Business Day that is (i) three Business Days following the date of this
Interest Election Request in the case of conversion into/continuation of Eurocurrency Loans to
the extent this Interest Election Request is delivered to the Administrative Agent not later
than 11:00 a.m., New York City time on the date hereof, otherwise the fourth Business Day
following the date of delivery hereof or (ii) the date of this Interest Election Request in
the case of a conversion into ABR Loans to the extent this Interest Election Request is
delivered to the Administrative Agent not later than 9:00 a.m., New York City time on the date
hereof, otherwise the Business Day following the date of delivery hereof.

EXHIBIT
E-1

 

 

The undersigned hereby certifies that the following statements are true on the date hereof, and
will be true on the proposed Interest Election Date, both before and after giving effect thereto
and to the application of the proceeds therefrom:

(a) the foregoing [conversion] [continuation] complies with the terms and conditions of the
Credit Agreement (including, without limitation, Section 2.08 of the Credit Agreement);

(b) no Default has occurred and is continuing, or would result from such proposed [conversion]
[continuation].

[Signature
Page Follows]

EXHIBIT E-2

 

 

The Administrative Borrower has caused this Interest Election Request to be executed and delivered
by its duly authorized officer as of the date first written above.

	 	 	 	 	 
	 	NOVELIS INC., as Administrative Borrower

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

EXHIBIT E-3

 

 

EXHIBIT F

Form of

JOINDER AGREEMENT

Reference is made to the Credit Agreement, dated as of July 6, 2007 (as amended, amended and
restated, supplemented or otherwise modified from time to time, the “Credit Agreement”),
among NOVELIS INC., a corporation formed under the Canada Business Corporations Act, NOVELIS
CORPORATION, a Texas corporation, AV ALUMINUM INC., a corporation formed under the Canada Business
Corporations Act, the Subsidiary Guarantors (such term and each other capitalized term used but not
defined herein having the meaning given to it in the Credit Agreement), the Lenders, UBS AG,
STAMFORD BRANCH, as administrative agent for the Lenders, UBS AG, STAMFORD BRANCH, as collateral
agent for the Secured Parties, the other agents party thereto, and ABN AMRO INCORPORATED and UBS
SECURITIES LLC, as joint lead arrangers and joint bookmanagers.

W I T N E S S E T H:

WHEREAS, the Guarantors have entered into the Credit Agreement and the applicable Security
Documents in order to induce the Lenders to make the Loans to or for the benefit of the
Borrowers;

WHEREAS,
pursuant to Section 5.11(b) of the Credit Agreement, certain Subsidiaries are required to
become Guarantors under the Credit Agreement by executing a Joinder Agreement. The undersigned
Subsidiary (the “New Guarantor”) is executing this joinder agreement (“Joinder
Agreement”) to the Credit Agreement and as consideration for the Loans previously made by the
Lenders and as consideration for the other agreements of the Lenders and the Agents under the Loan
Documents and as consideration for other good and valid consideration the receipt and sufficiency
of which is hereby acknowledged.

NOW,
THEREFORE, the Administrative Agent, Collateral Agent and the New Guarantor hereby agree as
follows:

1. Guarantee. In accordance with Section 5.11(b) of the Credit Agreement, the New Guarantor by its
signature below becomes a Guarantor under the Credit Agreement with the same force and effect as if
originally named therein as a Guarantor.

2. Representations and Warranties. The New Guarantor hereby (a) agrees to all the terms and
provisions of the Credit Agreement applicable to it as a Guarantor thereunder and (b) represents
and warrants that the representations and warranties made by it as a Guarantor thereunder are true
and correct in all material respects (except that any representation and warranty that is qualified
as to “materiality” or “Material Adverse Effect” shall be true and correct in all respects) on and
as of the date hereof, except to the extent such representations and warranties expressly relate to
an earlier date, in which case such representation and warranty shall have been true and correct in
all material respects (or, in the case of any representation and warranty that is qualified as to
“materiality” or “Material Adverse Effect”, true and correct in all respects) as of such earlier
date. Each reference to a Guarantor in the Credit Agreement shall be deemed to include the New
Guarantor. The New Guarantor hereby attaches supplements to each of the schedules to the Credit
Agreement and the Perfection Certificates applicable to it.

3. Severability. Any provision of this Joinder Agreement which is prohibited or unenforceable in
any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition
or unenforceability without invalidating the remaining provisions hereof, and any such prohibition
or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision
in any other jurisdiction.

EXHIBIT
F-1

 

 

4. Counterparts. This Joinder Agreement may be executed in counterparts, each of which shall
constitute an original. Delivery of an executed signature page to this Joinder Agreement by
facsimile transmission shall be as effective as delivery of a manually executed counterpart of this
Joinder Agreement.

5. No Waiver. Except as expressly supplemented hereby, the Credit Agreement shall remain in full
force and effect.

6. Notices. All notices, requests and demands to or upon the New Guarantor, any Agent or any Lender
shall be governed by the terms of Section 11.01 of the Credit Agreement.

7. Governing Law. THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE
CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAW OF THE STATE OF NEW YORK, WITHOUT REGARD TO
CONFLICTS OF LAWS PRINCIPLES THAT WOULD REQUIRE THE APPLICATION OF THE LAWS OF ANOTHER
JURISDICTION.

[Signature Pages Follow]

EXHIBIT F-2

 

 

IN WITNESS WHEREOF, the undersigned have caused this Joinder Agreement to be duly executed and
delivered by their duly authorized officers as of the day and year first above written.

	 	 	 	 	 
	 	[NEW GUARANTOR]

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	Address for Notices:	 
	 	 	 
	 	UBS AG, Stamford Branch,

      as Administrative Agent and as Collateral Agent

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 	 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

EXHIBIT F-3

 

 

[Note: Schedules to be attached.]

EXHIBIT F-4

 

 

EXHIBIT G

Form of

LANDLORD ACCESS AGREEMENT

[See attached]

EXHIBIT G-1

 

 

LANDLORD’S
LIEN WAIVER, ACCESS AGREEMENT AND CONSENT

          THIS LANDLORD’S LIEN WAIVER, ACCESS AGREEMENT AND CONSENT (the
“Agreement”) is made and entered into as of
[                    ,
200      ] by and between                                         , having an
office at
                                        
(“Landlord”) and UBS AG,
STAMFORD BRANCH, having an office at
677 Washington Boulevard, Stamford, Connecticut 06901, as collateral agent, (in such capacity,
“Collateral Agent”), for the benefit of the Secured Parties under the Credit Agreement (as
hereinafter defined).

R E C I T A L S:

          A. Landlord is the record title holder and owner of the real property described in
Schedule A attached hereto (the “Real Property”).

          B. Landlord has leased all or a portion of the Real Property (the “Leased Premises”)
to [                    ] (“Lessee”) pursuant to a certain lease agreement or agreements described in
Schedule B attached hereto (collectively, and as amended, amended and restated,
supplemented or otherwise modified from time to time, the “Lease”).

          C. [Lessee]1 and the Collateral Agent, among others, have entered into
that certain Credit Agreement, dated as of July
[     ], 2007, (as amended, amended and restated, supplemented or
otherwise modified from time to time, the “Credit Agreement”; capitalized terms used and not
otherwise defined herein shall have the meanings assigned to such terms in the Credit Agreement),
pursuant to which the Lenders have agreed to make certain loans to, among others,
[Lessee]2 (collectively, the “Loans”).

          D. [The Lessee is a subsidiary of Borrower]3

          E. [The Lessee has, pursuant to the Credit Agreement among other things guaranteed the
obligations of the Borrower under the Credit Agreement and the other Documents evidencing and
securing the Loans.]4

          F. As security for the payment and performance of Lessee’s Obligations under the Credit
Agreement and the other Loan Documents, Collateral Agent (for its benefit and the benefit of the
Secured Parties) has or will acquire a security interest in and lien upon all of Lessee’s personal
property, inventory, accounts, goods, machinery, equipment, furniture and fixtures (together with
all additions, substitutions, replacements and improvements to, and proceeds of, the foregoing,
collectively, the “Personal Property”) [and a mortgage lien on Lessee’s leasehold interest in the
Leased Premises.]5.

 

			
	1	 	Insert name of applicable borrower entities if Lessee is not the borrower under the
Credit Agreement and create a defined term “Borrower”.
	 
	2	 	Insert “Borrower” if Lessee is not the borrower
under the Credit Agreement.
	 
	3	 	Delete this recital if Lessee is a borrower under
the Credit Agreement.
	 
	4	 	Delete this recital if Lessee is a borrower
under the Credit Agreement.
	 
	5	 	Include bracketed language if Leased Premises are to be mortgaged.

 

 

          G. Collateral Agent has requested that Landlord execute this Agreement as a
condition precedent to the making of the Loans under the Credit Agreement.

A G R E E M E N T:

          NOW, THEREFORE, for and in consideration of the premises and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, Landlord hereby
represents, warrants and agrees in favor of Collateral Agent, as follows:

          1. Landlord hereby waives and releases unto Collateral Agent (i) any contractual landlord’s
lien and any other landlord’s lien which it may be entitled to at law or in equity against any
Personal Property, (ii) any and all rights granted by or under any present or future laws to levy
or distrain for rent or any other charges which may be due to the Landlord against the Personal
Property and (iii) any and all claims, liens and demands of every kind which it has or may
hereafter have against the Personal Property (including, without limitation, any right to include
the Personal Property in any secured financing Landlord may become party to). Landlord acknowledges
that the Personal Property is and will remain personal property and not fixtures even though it may
be affixed to or placed on the Real Property.

          2. Landlord certifies that (i) Landlord is the landlord under the Lease described in
Schedule B attached hereto, (ii) the Lease is in full force and effect and has not been
amended, modified or supplemented except as set forth in Schedule B hereto, (iii) there is
no defense, offset, claim or counterclaim by or in favor of Landlord against Lessee under the Lease
or against the obligations of Landlord under the Lease and (iv) no notice of default has been given
under or in connection with the Lease which has not been cured, and Landlord has no knowledge of
any occurrence of any other default under or in connection with the Lease, (v) Lessee is in
possession of the Leased Premises, (vi) the current monthly base rent under the Lease is $                     per month, such monthly base rent due under the Lease
has been paid through
                    ,
(vii) additional rent is $                     and has been paid through                    , (viii) common area charges are $                     and have been paid
 through                     , (ix) there
are no other agreements, whether oral or written, between Lessee and Lessor concerning the Real
Property or the Leased Premises, (x) any improvements required by the terms of the Lease to be made
by lessee have been completed to the satisfaction of Landlord, and Lessee’s current use and
operating of the Leased Premises complies with any use covenants or operating requirements
contained in the Lease, (xi) Landlord is the record and beneficial owner of the Leased Premises,
and the Lease is not subordinate, and has not been subordinated by Landlord, to any mortgage, lien
or other encumbrance, (xii) Landlord has not assigned, conveyed, transferred, sold, encumbered or
mortgaged its interest in the Lease or the Real Property, and there are no mortgages, deeds of
trust or other security interests encumbering Landlord’s fee interest in the Leased Premises,
(xiii) Landlord has not received written notice of any pending eminent domain proceedings or other
governmental actions or any judicial actions of any kind against Landlord’s interest in the Real
Property, and (xiv) Landlord, and the person or persons executing this certificate on behalf of
Landlord, have the power and authority to execute this Agreement.

          3. Landlord agrees that Collateral Agent has the right to remove the Personal Property from
the Leased Premises at any time prior to the occurrence of a default under the Lease and, after the
occurrence of such a default, during the Standstill Period (as hereinafter defined)
provided that Collateral Agent shall repair any damage arising from such removal. Landlord
further agrees that, during the foregoing periods, Landlord will not (i) remove any of the Personal
Property from the Leased Premises or (ii) hinder Collateral Agent’s actions in removing Personal
Property from the Leased Premises or Collateral Agent’s actions in otherwise enforcing its security
interest in the Personal Property. Collateral Agent shall not be liable for any diminution in value
of the Leased Premises caused by the absence of Personal Property actually removed or by the need
to replace the Personal Property

-2-

 

after such removal. Landlord acknowledges that Collateral Agent shall have no obligation to remove
the Personal Property from the Leased Premises.

          4. Landlord acknowledges and agrees that Lessee’s granting of a security interest in the
Personal Property [and the granting of a mortgage lien in and upon Lessee’s interest in the Leased
Premises, in each case,]6 in favor of the Collateral Agent (for its benefit and the
benefit of the Secured Parties under the Credit Agreement) shall not constitute a default under the
Lease nor permit Landlord to terminate the Lease or re-enter or repossess the Leased Premises or
otherwise be the basis for the exercise of any remedy by Landlord and Landlord hereby expressly
consents to the granting of such security interest [and mortgage lien.]7.

          5. Notwithstanding anything to the contrary contained in this Agreement or the Lease, in the
event of a default by Lessee under the Lease, Landlord agrees that (i) it shall provide to
Collateral Agent at the address set forth in the introductory paragraph hereof a copy of any notice
of default delivered to Lessee under the Lease and (ii) it shall not exercise any of its remedies
against Lessee provided in favor of Landlord under the Lease or at law or in equity until, in the
case of a monetary default, the date which is 45 days after the date the Landlord delivers written
notice of such monetary default to Collateral Agent, and in the case of a non-monetary default, the
date which is 60 days after the date the Landlord delivers written notice of such non-monetary
default to Collateral Agent (such 45-day period for monetary defaults and such 60 day period for
non-monetary defaults, as applicable, being referred to as the “Standstill Period”), provided,
however, if such non-monetary default by its nature cannot reasonably be cured by Collateral
Agent within such 60 day period, the Collateral Agent shall have such additional period of time as
may be reasonably necessary to cure such non-monetary default, so long as Lender commences such
curative measures within such 60 day period and thereafter proceeds diligently to complete such
curative measures. In the event that any such non-monetary default by its nature cannot reasonably
be cured by Collateral Agent, Landlord shall, provided Collateral Agent has theretofore cured all
monetary defaults (if any), upon the request of Collateral Agent enter into a new lease with
Collateral Agent (or its nominee) on the same terms and conditions as the Lease. Collateral Agent
shall have the right, but not the obligation, during the Standstill Period, to cure any such
default and Landlord shall accept any such cure by Collateral Agent or Lessee. If, during the
Standstill Period, Collateral Agent or Lessee or any other Person cures any such default, then
Landlord shall rescind the notice of default.

          6. In the event of a termination, disaffirmance or rejection of the Lease for any reason,
including, without limitation, pursuant to any laws (including any bankruptcy or other insolvency
laws) by Lessee or the termination of the Lease for any reason by Landlord, Landlord will give the
Collateral Agent the right, within sixty (60) days of such event, provided all monetary defaults
under the Lease have been cured, to enter into a new lease of the Leased Premises, in the name of
the Collateral Agent (or a designee to be named by the Collateral Agent at the time), for the
remainder of the term of the Lease and upon all of the terms and conditions thereof, or, if the
Collateral Agent shall elect not to exercise such right (such election to be made by Collateral
Agent at its sole discretion), Landlord will give the Collateral Agent the right to enter upon the
Leased Premises during such sixty (60) day period for the purpose of removing Tenant’s personal
property therefrom.

 

			
	6	 	Include bracketed language if Leased Premises are
to be mortgaged.
	 
	7	 	Include bracketed language if Leased Premises are
to be mortgaged.

-3-

 

          7. Notwithstanding any provision to the contrary contained in the Lease, any
acquisition of Lessee’s interest by Collateral Agent, its
nominee, shall not create a default under, or require Landlord’s consent under, the Lease.

          8. The terms and provisions of
this Agreement shall inure to the benefit of and be binding upon the successors and
assigns of Landlord (including, without limitation, any successor owner of the Real Property) and
Collateral Agent. Landlord will disclose the terms and conditions of this Agreement to any purchaser or successor to
Landlord’s interest in the Leased Premises. Notwithstanding that the provisions of this Agreement are self-executing,
Landlord agrees, upon request by Collateral Agent, to execute and deliver a written acknowledgment confirming the provisions of this
Agreement in form and substance satisfactory to Collateral Agent.

          9. All notices to any party hereto under this Agreement shall be in writing
and sent to such party at its respective address set forth above (or at such other address
as shall be designated by such party in a written notice to the other party complying as to delivery with
the terms of this Section 9) by certified mail, postage prepaid, return receipt requested or by overnight delivery service.

          10. The provisions of this Agreement shall continue in effect until
Landlord shall have received Collateral Agent’s written certification that the Loans have
been paid in full and all of Lender’s other Obligations under the Credit Agreement and the other
Loan Documents have been satisfied.

          11. THE INTERPRETATION, VALIDITY AND ENFORCEMENT
OF THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED UNDER THE LAWS OF THE STATE OF NEW YORK,
WITHOUT GIVING EFFECT TO THE CONFLICTS OF LAWS PRINCIPLES THEREOF.

          12. Landlord agrees to execute, acknowledge and deliver such further instruments as Collateral Agent
may request to allow for the proper recording of this Agreement (including, without limitation, a revised
landlord’s waiver in form and substance sufficient for recording) or to otherwise accomplish the purposes of this Agreement.

          13. Landlord agrees that, so long as the Notes and
Lessee’s Obligations under the Credit Agreement remain outstanding and Collateral Agent retains an interest in the Personal Property
[and/or Lessee’s interest in the Leased Premises]8, no modification,
alteration or amendment shall be made to the Lease without the prior written consent of Collateral Agent
if such modification, alteration or amendment could have a material adverse effect on the value or use of the
Leased Premises or Lessee’s obligations or rights under the Lease.

[Signature Page Follows.]

 

			
	8	 	Include bracketed language if Leased Premises are to be mortgaged.

-4-

 

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

	 	 	 	 	, 
	 	as Landlord
 	 
	 	 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	UBS AG, STAMFORD BRANCH, 
as
Collateral Agent

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

 

 

Schedule A

 Description of Real Property

 

 

Schedule B

 Description of Leases

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Location/
	Lessor	 	Lessee	 	Dated	 	Modification	 	Property Address
	 	 	 	 	 	 	 	 	 

 

 

EXHIBIT H

[INTENTIONALLY OMITTED]

EXHIBIT H-1

 

 

EXHIBIT I

Form of

LENDER ADDENDUM

          Reference is made to the Credit Agreement, dated as of July 6, 2007 (as amended, amended and
restated, supplemented or otherwise modified from time to time, the “Credit Agreement”),
among NOVELIS INC., a corporation formed under the Canada Business Corporations Act, NOVELIS
CORPORATION, a Texas corporation, AV ALUMINUM INC., a corporation formed under the Canada Business
Corporations Act, the Subsidiary Guarantors (such term and each other capitalized term used but
not defined herein having the meaning given to it in the Credit Agreement), the Lenders, UBS AG,
STAMFORD BRANCH, as administrative agent for the Lenders, UBS AG, STAMFORD BRANCH, as collateral
agent for the Secured Parties, the Syndication Agent, the Documentation Agent, and ABN AMRO
INCORPORATED and UBS SECURITIES LLC, as joint lead arrangers and joint bookmanagers.

          Upon execution and delivery of this Lender Addendum by the parties hereto as provided in
Section 11.15 of the Credit Agreement, the undersigned hereby becomes a Lender thereunder
having the Commitment set forth in Schedule 1 hereto, effective as of the Closing Date.

          THIS LENDER ADDENDUM SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAW OF THE
STATE OF NEW YORK, WITHOUT REGARD TO CONFLICTS OF LAWS PRINCIPLES THAT WOULD REQUIRE THE
APPLICATION OF THE LAWS OF ANOTHER JURISDICTION.

          This Lender Addendum may be executed by one or more of the parties hereto on any number of
separate counterparts, and all of said counterparts taken together shall be deemed to constitute
one and the same instrument. Delivery of an executed signature page hereof by facsimile
transmission shall be effective as delivery of a manually executed counterpart hereof.

EXHIBIT I-1

 

 

          IN WITNESS WHEREOF, the parties hereto have caused this Lender Addendum to be duly executed
and delivered by their proper and duly authorized officers as of this
      day of July, 2007.

	 	 	 	 	 	 	 
	 	 	 	, 	 
	 	 	as a Lender
	 	 	[Please type legal name of Lender above]
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	Title:	 	 
	 
	 	 	 	 	 	 
	 	 	[If second signature is necessary:]
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	Title:	 	 

EXHIBIT I-2

 

 

	 	 	 	 	 
	Accepted and agreed:

 NOVELIS INC.

	 	 
	By:
	 	 	 	 
	 

	 	 

Name:
	 	 
	 

	 	Title:	 	 
	 
	 	 	 	 
	UBS AG, STAMFORD BRANCH, as	 	 
	Administrative Agent	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	Title:	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	Title:	 	 

EXHIBIT I-3

 

 

Schedule 1

COMMITMENTS AND NOTICE ADDRESS

	 	 	 	 	 	 	 
	1.

	 	Name of Lender:	 	 	 	 
	 

	 	Notice Address:
	 	 

	 	 
	 

	 	 	 	 

	 	 
	 

	 	 	 	 

	 	 
	 

	 	Attention:
	 	 

	 	 
	 

	 	Telephone:
	 	 

	 	 
	 

	 	Facsimile:
	 	 

	 	 
	 

	 	 	 	 

	 	 
	2.

	 	Commitment:	 	 	 	 
	 

	 	 	 	 

	 	 

EXHIBIT I-4

 

 

EXHIBIT J

Form of

MORTGAGE

[See attached]

EXHIBIT J-1

 

 

[The aggregate maximum principal amount of indebtedness that may be secured hereby is
$[          ].]1

 

MORTGAGE, ASSIGNMENT OF LEASES AND RENTS,

SECURITY AGREEMENT AND FIXTURE FILING

BY

[                                        ],

as Mortgagor,

TO

UBS AG, STAMFORD BRANCH,

as Collateral Agent,

as Mortgagee

 

Dated as of [                    ], 2007

Relating to Premises in:

[                                        ]

 

This instrument was prepared in consultation with counsel in the state in which the Mortgaged
Property is located by the

 attorney named below and after recording please return to:

Roshan Sonthalia, Esq.

Skadden, Arps, Slate, Meagher & Flom LLP

300 South Grand Avenue

Los Angeles, CA 90071

 

			
	1	 	TO BE INCLUDED ONLY IN MORTGAGE RECORDING TAX STATES.

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page
	PREAMBLE
	 	 	1	 
	 
	 	 	 	 
	RECITALS
	 	 	1	 
	 
	 	 	 	 
	AGREEMENT
	 	 	2	 
	 
	 	 	 	 
	ARTICLE I.

	 
	 	 	 	 
	DEFINITIONS AND INTERPRETATION

	 
	 	 	 	 
	SECTION 1.1. Definitions
	 	 	2	 
	SECTION 1.2. Interpretation
	 	 	5	 
	 
	 	 	 	 
	ARTICLE II.

	 
	 	 	 	 
	GRANTS AND SECURED OBLIGATIONS

	 
	 	 	 	 
	SECTION 2.1. Grant of Mortgaged Property
	 	 	5	 
	SECTION 2.2. Assignment of Leases and Rents
	 	 	6	 
	SECTION 2.3. Secured Obligations
	 	 	7	 
	SECTION 2.4. Future Advances
	 	 	7	 
	SECTION 2.5. Secured Amount
	 	 	7	 
	SECTION 2.6. Last Dollar Secured
	 	 	7	 
	SECTION 2.7. No Release
	 	 	8	 
	 
	 	 	 	 
	ARTICLE III.

	 
	 	 	 	 
	REPRESENTATIONS AND WARRANTIES OF MORTGAGOR

	 
	 	 	 	 
	SECTION 3.1. Intentionally Omitted
	 	 	8	 
	SECTION 3.2. Warranty of Title
	 	 	8	 
	SECTION 3.3. Condition of Mortgaged Property
	 	 	8	 
	SECTION 3.4. Property Charges
	 	 	9	 
	 
	 	 	 	 
	ARTICLE IV.

	 
	 	 	 	 
	CERTAIN COVENANTS OF MORTGAGOR

	 
	 	 	 	 
	SECTION 4.1. Payment and Performance
	 	 	9	 
	SECTION 4.2. Title
	 	 	9	 
	SECTION 4.3. Inspection
	 	 	10	 
	SECTION 4.4. Limitation on Liens; Transfer Restrictions
	 	 	10	 
	SECTION 4.5. Insurance
	 	 	11	 

-i-

 

	 	 	 	 	 
	 	 	Page
	ARTICLE V.

	 
	 	 	 	 
	CONCERNING ASSIGNMENT OF LEASES AND RENTS

	 
	 	 	 	 
	SECTION 5.1. Present Assignment; License to the Mortgagor

	 	 	11	 
	SECTION 5.2. Collection of Rents by the Mortgagee

	 	 	12	 
	SECTION 5.3. Irrevocable Interest

	 	 	12	 
	 
	 	 	 	 
	ARTICLE VI.

	 
	 	 	 	 
	TAXES AND CERTAIN STATUTORY LIENS

	 
	 	 	 	 
	SECTION 6.1. Payment of Property Charges

	 	 	12	 
	SECTION 6.2. Stamp and Other Taxes

	 	 	12	 
	SECTION 6.3. Certain Tax Law Changes

	 	 	12	 
	SECTION 6.4. Proceeds of Tax Claim

	 	 	13	 
	 
	 	 	 	 
	ARTICLE VII.

	 
	 	 	 	 
	CASUALTY EVENTS AND RESTORATION

	 
	 	 	 	 
	SECTION 7.1. Casualty Event

	 	 	13	 
	SECTION 7.2. Condemnation

	 	 	13	 
	SECTION 7.3. Restoration

	 	 	13	 
	 
	 	 	 	 
	ARTICLE VIII.

	 
	 	 	 	 
	EVENTS OF DEFAULT AND REMEDIES

	 
	 	 	 	 
	SECTION 8.1. Remedies in Case of an Event of Default

	 	 	14	 
	SECTION 8.2. Sale of Mortgaged Property if Event of Default Occurs;
Proceeds of Sale

	 	 	14	 
	SECTION 8.3. Additional Remedies in Case of an Event of Default

	 	 	16	 
	SECTION 8.4. Legal Proceedings After an Event of Default

	 	 	16	 
	SECTION 8.5. Remedies Not Exclusive

	 	 	17	 
	 
	 	 	 	 
	ARTICLE IX.

	 
	 	 	 	 
	SECURITY AGREEMENT AND FIXTURE FILING

	 
	 	 	 	 
	SECTION 9.1. Security Agreement

	 	 	18	 
	SECTION 9.2. Fixture Filing

	 	 	18	 
	 
	 	 	 	 
	ARTICLE X.

	 
	 	 	 	 
	FURTHER ASSURANCES

	 
	 	 	 	 
	SECTION 10.1. Recording Documentation To Assure Security

	 	 	19	 

-ii-

 

	 	 	 	 	 
	 	 	Page
	SECTION 10.2. Further Acts

	 	 	19	 
	SECTION 10.3. Additional Security

	 	 	20	 
	 
	 	 	 	 
	ARTICLE XI.

	 
	 	 	 	 
	MISCELLANEOUS

	 
	 	 	 	 
	SECTION 11.1. Covenants To Run with the Land

	 	 	20	 
	SECTION 11.2. No Merger

	 	 	20	 
	SECTION 11.3. Concerning Mortgagee

	 	 	20	 
	SECTION 11.4. Mortgagee May Perform; Mortgagee Appointed Attorney-in-Fact

	 	 	21	 
	SECTION 11.5. Continuing Security Interest; Assignment

	 	 	22	 
	SECTION 11.6. Termination; Release

	 	 	22	 
	SECTION 11.7. Modification in Writing

	 	 	22	 
	SECTION 11.8. Notices

	 	 	22	 
	SECTION 11.9. GOVERNING LAW; SERVICE OF PROCESS; WAIVER OF
JURY TRIAL

	 	 	23	 
	SECTION 11.10. Severability of Provisions

	 	 	23	 
	SECTION 11.11. Relationship

	 	 	23	 
	SECTION 11.12. No Credit for Payment of Taxes or Impositions

	 	 	23	 
	SECTION 11.13. No Claims Against the Mortgagee

	 	 	23	 
	SECTION 11.14. Mortgagee’s Right To Sever Indebtedness

	 	 	24	 
	 
	 	 	 	 
	ARTICLE XII.

	 
	 	 	 	 
	INTERCREDITOR AGREEMENT

	 
	 	 	 	 
	SECTION 12.1. Intercreditor Agreement

	 	 	25	 
	SECTION 12.2. Credit Agreement

	 	 	26	 
	 
	 	 	 	 
	ARTICLE XIII.

	 
	 	 	 	 
	LEASES

	 
	 	 	 	 
	SECTION 13.1. Mortgagor’s Affirmative Covenants with Respect to Leases

	 	 	26	 
	SECTION 13.2. Mortgagor’s Negative Covenants with Respect to Leases

	 	 	26	 
	 
	 	 	 	 
	ARTICLE XIV.

	 
	 	 	 	 
	LOCAL LAW PROVISIONS

	 
	 	 	 	 
	SIGNATURE
	 	 	 	 
	 
	 	 	 	 
	ACKNOWLEDGMENTS
	 	 	 	 
	 
	 	 	 	 
	SCHEDULE A       Legal Description
	 	 	 	 

-iii-

 

MORTGAGE, ASSIGNMENT OF LEASES AND RENTS, SECURITY

AGREEMENT AND FIXTURE FILING

          This MORTGAGE, ASSIGNMENT OF LEASES AND RENTS, SECURITY
AGREEMENT AND FIXTURE FILING (this “Mortgage”), dated as of [                    ,                     ],
is made by [                                        ], a [                                        ], having an office at 6060 Parkland
Boulevard, Cleveland, Ohio 44124, as mortgagor, assignor and debtor (in such capacities and
together with any successors in such capacities, the “Mortgagor”), in favor of UBS AG,
STAMFORD BRANCH, having an address at 677 Washington Boulevard, Stamford, Connecticut 06901, in its
capacity as collateral agent for Secured Parties (as hereinafter defined), as mortgagee, assignee
and secured party (in such capacities and together with any successors in such capacities, the
“Mortgagee”).

R E C I T A L S:

          A. Pursuant to that certain Credit Agreement, dated as of July 6, 2007 (as amended, amended
and restated, supplemented or otherwise modified from time to time, the “Credit Agreement”;
which term shall also include and refer to any increase in the amount of indebtedness under the
Credit Agreement and any refinancing or replacement of the Credit Agreement (whether under a bank
facility, securities offering or otherwise) or one or more successor or replacement facilities
whether or not with a different group of agents or lenders (whether under a bank facility,
securities offering or otherwise) and whether or not with different obligors upon the
Administrative Agent’s acknowledgment of the termination of the predecessor Credit Agreement),
among Novelis Inc. (the “Canadian Borrower”), Novelis Corporation (“US Borrower” and,
together with the Canadian Borrower, the
“Borrowers”), AV Aluminum Inc., the Subsidiary
Guarantors (such term and each other capitalized term used and not defined herein having the
meaning given to it in Article I of the Credit Agreement), the Lenders, UBS AG, Stamford
Branch, as administrative agent for the Lenders, UBS AG, Stamford Branch, as collateral agent for
the Secured Parties, ABN Amro Incorporated and UBS Securities LLC, as joint lead arrangers and
joint bookmanagers, and the other parties thereto, the Lenders have agreed to make to or for the
account of the Borrowers certain Term Loans.

          B. The Mortgagor will receive substantial benefits from the execution, delivery and
performance of the Loan Documents and is, therefore, willing to enter into this Mortgage.

          C. It is a condition to (i) the obligations of the Lenders to make the Loans under the Credit
Agreement and (ii) the performance of the obligations of the Secured Parties under the Loan
Documents and Hedging Agreements, if any, that the Mortgagor execute and deliver the applicable
Loan Documents, including this Mortgage.

          D. This Mortgage is given by the Mortgagor in favor of the Mortgagee for its benefit and the
benefit of the other Secured Parties to secure the payment and performance of all of the Secured
Obligations (as defined in the Credit Agreement) owing by Mortgagor pursuant to the Loan Documents
(collectively, the “Secured Obligations”).

A
G R E E M E N T:

 

 

          NOW THEREFORE, in consideration of the foregoing premises and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the Mortgagor hereby
covenants and agrees with the Mortgagee as follows:

ARTICLE I.

DEFINITIONS AND INTERPRETATION

          SECTION 1.1. Definitions. (a) Capitalized terms used but not otherwise defined
herein that are defined in the Credit Agreement shall have the meanings given to them in the Credit
Agreement, including the following:

     “Administrative Agent”; “Affiliate”; “Agents”;
“Casualty Event”; “Collateral Agent”; “Commitment”;
“Event of Default”; “Governmental Authority”; “Hedging
Agreements”; “Letter of Credit”; “Lenders”; “Lien”;
“Loan Documents”; “Loan Parties”; “Loans”; “Net Cash
Proceeds”; “Notes”; “Permitted Liens”; “person”;
“Requirements of Law”; “Secured Parties”; “Security
Agreement”; “Security Documents”; and “Subsidiary Guarantors.”

          (b) The following terms in this Mortgage shall have the following meanings:

          “Allocated Indebtedness” shall have the meaning assigned to such term in
Section 11.14(i) hereof.

          “Allocation Notice” shall have the meaning assigned to such term in
Section 11.14(i) hereof.

          “Collateral” shall have the meaning assigned to such term in Section 11.14(i)
hereof.

          “Contracts” shall mean, collectively, any and all right, title and interest of the
Mortgagor in and to any and all contracts and other general intangibles relating to the Mortgaged
Property and all reserves, deferred payments, deposits, refunds and claims of every kind, nature or
character relating thereto.

          “Credit Agreement” shall have the meaning assigned to such term in Recital A hereof.

          “Default Rate” shall mean the rate of interest payable during a default pursuant to
the provisions of Section 2.06(f) of the Credit Agreement.

          “Fixtures” shall mean all machinery, apparatus, equipment, fittings, fixtures,
improvements and articles of personal property of every kind, description and nature whatsoever now
or hereafter attached or affixed to the Land or any other Improvement used in connection with the
use and enjoyment of the Land or any other Improvement or the maintenance or preservation thereof,
which by the nature of their location thereon or attachment thereto are real

-2-

 

property or fixtures under the UCC or any other applicable law including, without limitation, all
HVAC equipment, boilers, electronic data processing, telecommunications or computer equipment,
refrigeration, electronic monitoring, power, waste removal, elevators, maintenance or other systems
or equipment, utility systems, fire sprinkler and security systems, drainage facilities, lighting
facilities, all water, sanitary and storm sewer, drainage, electricity, steam, gas, telephone and
other utility equipment and facilities, pipes, fittings and other items of every kind and
description now or hereafter attached to or located on the Land.

          “Improvements” shall mean all buildings, structures and other improvements of every
kind or description and any and all alterations now or hereafter located, attached or erected on
the Land, including, without limitation, (i) all attachments, railroad tracks, foundations,
sidewalks, drives, roads, curbs, streets, ways, alleys, passages, passageways, sewer rights,
parking areas, driveways, fences and walls and (ii) all materials now or hereafter located on the
Land intended for the construction, reconstruction, repair, replacement, alteration, addition or
improvement of or to such buildings, structures and improvements, all of which materials shall be
deemed to be part of the Improvements immediately upon delivery thereof on the Land and to be part
of the Improvements immediately upon their incorporation therein.

          “Insurance Policies” means the insurance policies and coverages required to be
maintained by the Mortgagor with respect to the Mortgaged Property pursuant to the Credit
Agreement.

          “Land” shall mean the land described in Schedule A annexed to this Mortgage,
together with all of the Mortgagor’s reversionary rights in and to any and all easements,
rights-of-way, strips and gores of land, waters, water courses, water rights, mineral, gas and oil
rights and all power, air, light and other rights, estates, titles, interests, privileges,
liberties, servitudes, licenses, tenements, hereditaments and appurtenances whatsoever, in any way
belonging, relating or appertaining thereto, or any part thereof, or which hereafter shall in any
way belong, relate or be appurtenant thereto and together with any greater or additional estate
therein as may be acquired by Mortgagor.

          “Landlord” shall mean any landlord, lessor, franchisor, licensor or grantor, as
applicable.

          “Leases” shall mean, collectively, any and all interests of the Mortgagor, as
Landlord, in all leases and subleases of space, tenancies, franchise agreements, licenses,
occupancy or concession agreements now existing or hereafter entered into, whether or not of
record, relating in any manner to the Premises and any and all amendments, modifications,
supplements, replacements, extensions and renewals of any thereof, whether now in effect or
hereafter coming into effect.

          “Mortgage” shall have the meaning assigned to such term in the Preamble
hereof.

          “Mortgaged Property” shall have the meaning assigned to such term in
Section 2.1 hereof.

          “Mortgagee” shall have the meaning assigned to such term in the Preamble hereof.

-3-

 

          “Mortgagor” shall have the meaning assigned to such term in the Preamble hereof.

          “Mortgagor’s Interest” shall have the meaning assigned to such term in
Section 2.2 hereof.

          “Permit” shall mean any and all permits, certificates, approvals, authorizations,
consents, licenses, variances, franchises or other instruments, however characterized, of any
Governmental Authority (or any person acting on behalf of a Governmental Authority) now or
hereafter acquired or held, together with all amendments, modifications, extensions, renewals and
replacements of any thereof issued or in any way furnished in connection with the Mortgaged
Property including, without limitation, building permits, certificates of occupancy, environmental
certificates, industrial permits or licenses and certificates of operation.

          “Premises” shall mean, collectively, the Land, the Fixtures and the
Improvements.

          “Proceeds” shall mean, collectively, any and all cash proceeds and noncash proceeds
and shall include all (i) proceeds of the conversion, voluntary or involuntary, of any of the
Mortgaged Property or any portion thereof into cash or liquidated claims, (ii) proceeds of any
insurance, indemnity, warranty, guaranty or claim payable to the Mortgagee or to the Mortgagor from
time to time with respect to any of the Mortgaged Property, (iii) payments (in any form whatsoever)
made or due and payable to the Mortgagor from time to time in connection with any requisition,
confiscation, condemnation, seizure or forfeiture of all or any portion of the Mortgaged Property
by any Governmental Authority (or any person acting on behalf of a Governmental Authority), (iv)
products of the Mortgaged Property and (v) other amounts from time to time paid or payable under or
in connection with any of the Mortgaged Property including, without limitation, refunds of real
estate taxes and assessments, including interest thereon.

          “Property Charges” shall mean any and all real estate, property and other taxes,
assessments and special assessments, levies, fees, all water and sewer rents and charges and all
other governmental charges imposed upon or assessed against, and all claims (including, without
limitation, claims for landlords’, carriers’, mechanics’, workmens’, repairmens’, laborers’,
materialmens’, suppliers’ and warehousemens’ Liens and other claims arising by operation of law),
judgments or demands against, all or any portion of the Mortgaged Property or other amounts of any
nature which, if unpaid, might result in or permit the creation of, a Lien on the Mortgaged
Property or which might result in foreclosure of all or any portion of the Mortgaged Property.

          “Property Material Adverse Effect” shall mean, as of any date of determination and
whether individually or in the aggregate, any event, circumstance, occurrence or condition which
has caused or resulted in (or would reasonably be expected to cause or result in) a material
adverse effect on (a) the business or operations of the Mortgagor as presently conducted at the
Mortgaged Property; (b) the value or utility of the Mortgaged Property; or (c) the legality,
priority or enforceability of the Lien created by this Mortgage or the rights and remedies of the
Mortgagee hereunder.

-4-

 

          “Prudent Operator” shall mean a prudent operator of property similar in use and
configuration to the Premises and located in the locality where the Premises are located.

          “Records” shall mean, collectively, any and all right, title and interest of the
Mortgagor in and to any and all drawings, plans, specifications, file materials, operating and
maintenance records, catalogues, tenant lists, correspondence, advertising materials, operating
manuals, warranties, guarantees, appraisals, studies and data relating to the Mortgaged Property or
the construction of any alteration relating to the Premises or the maintenance of any Permit.

          “Rents” shall mean, collectively, any and all rents, additional rents, royalties,
cash, guaranties, letters of credit, bonds, sureties or securities deposited under any Lease to
secure performance of the Tenant’s obligations thereunder, revenues, earnings, profits and income,
advance rental payments, payments incident to assignment, sublease or surrender of a Lease, claims
for forfeited deposits and claims for damages, now due or hereafter to become due, with respect to
any Lease, any indemnification against, or reimbursement for, sums paid and costs and expenses
incurred by the Mortgagor under any Lease or otherwise, and any award in the event of the
bankruptcy of any Tenant under or guarantor of a Lease.

          “Secured
Obligations” shall have the meaning assigned to such term in Recital D hereof.

          “Tenant” shall mean any tenant, lessee, sublessee, franchisee, licensee, grantee or
obligee, as applicable.

          “UCC” shall mean the Uniform Commercial Code as in effect on the date hereof in the
state in which the Premises are located; provided, however, that if the creation,
perfection or enforcement of any security interest herein granted is governed by the laws of any
other state as to the matter in question, “UCC” shall mean the Uniform Commercial Code in effect
in such state.

          SECTION 1.2. Interpretation. The rules of construction set forth in Section 1.03
of the Credit Agreement shall be applicable to this Mortgage mutatis mutandis.

ARTICLE II.

GRANTS AND SECURED OBLIGATIONS

          SECTION 2.1. Grant of Mortgaged Property. The Mortgagor hereby grants, mortgages,
bargains, sells, assigns, transfers and conveys to the Mortgagee, its successors and assigns, and
hereby grants to the Mortgagee, a security interest in and upon, all of the Mortgagor’s estate,
right, title and interest in, to and under the following property, whether now owned or held or
hereafter acquired from time to time (collectively, the “Mortgaged Property”):

	 	(i)	 	Land;
	 
	 	(ii)	 	Improvements;

-5-

 

	 	(iii)	 	Fixtures;
	 
	 	(iv)	 	Leases;
	 
	 	(v)	 	Rents;
	 
	 	(vi)	 	Permits;
	 
	 	(vii)	 	Contracts;
	 
	 	(viii)	 	Records; and
	 
	 	(ix)	 	Proceeds;

          Notwithstanding the foregoing provisions of this Section 2.1, Mortgaged Property shall
not include a grant of any of the Mortgagor’s right, title or interest in any Contract or Permit
(x) that validly prohibits the creation by the Mortgagor of a security interest therein and (y) to
the extent, but only to the extent that, any Requirement of Law applicable thereto prohibits the
creation of a security interest therein; provided, however, that the right to
receive any payment of money or any other right referred to in Sections 9-406(d), 9-407(a) or
9-408(a) of the UCC to the extent that such Sections are effective to limit the prohibitions
described in clauses (x) and (y) of this Section 2.1 shall constitute Mortgaged Property hereunder
and; provided, further, that at such time as any Contract or Permit described in
clauses (x) and (y) of this Section 2.1 is no longer subject to such prohibition, such applicable
Contract or Permit shall (without any act or delivery by any person) constitute Mortgaged Property
hereunder.

          TO HAVE AND TO HOLD the Mortgaged Property, together with all estate, right, title and
interest of the Mortgagor and anyone claiming by, through or under the Mortgagor in and to the
Mortgaged Property and all rights and appurtenances relating thereto, unto the Mortgagee, its
successors and assigns, for the purpose of securing the payment and performance in full of all the
Secured Obligations.

          SECTION 2.2. Assignment of Leases and Rents. As additional security for the payment
and performance in full of the Secured Obligations and subject to the provisions of Article
V hereof, the Mortgagor absolutely, presently, unconditionally and irrevocably assigns,
transfers and sets over to the Mortgagee, and grants to the Mortgagee, all of the Mortgagor’s
estate, right, title, interest, claim and demand, as Landlord, under any and all of the Leases
including, without limitation, the following (such assigned rights, the “Mortgagor’s
Interest”):

     (i) the immediate and continuing right to receive and collect Rents payable by the
Tenants pursuant to the Leases;

     (ii) all claims, rights, powers, privileges and remedies of the Mortgagor,
whether provided for in the Leases or arising by statute or at law or in equity or
otherwise, consequent on any failure on the part of the Tenants to perform or comply with
any term of the Leases;

-6-

 

     (iii) all rights to take all actions upon the happening of a default under the
Leases as shall be permitted by the Leases or by law including, without limitation, the
commencement, conduct and consummation of proceedings at law or in equity; and

     (iv) the full power and authority, in the name of the Mortgagor or otherwise, to
enforce, collect, receive and receipt for any and all of the foregoing and to take all other
actions whatsoever which the Mortgagor, as Landlord, is or may be entitled to take under the
Leases.

          SECTION 2.3. Secured Obligations. This Mortgage secures, and the Mortgaged
Property is collateral security for, the payment and performance in full when due of the Secured
Obligations.

          SECTION 2.4. Future Advances. This Mortgage shall secure all Secured Obligations
including, without limitation, future advances whenever hereafter made with respect to or under the
Credit Agreement or the other Loan Documents and shall secure not only Secured Obligations with
respect to presently existing indebtedness under the Credit Agreement or the other Loan Documents,
but also any and all other indebtedness which may hereafter be owing by the Mortgagor to the
Secured Parties under the Credit Agreement or the other Loan Documents, however incurred, whether
interest, discount or otherwise, and whether the same shall be deferred, accrued or capitalized,
including future advances and re-advances, pursuant to the Credit Agreement or the other Loan
Documents, whether such advances are obligatory or to be made at the option of the Secured Parties,
or otherwise, and any extensions, refinancings, modifications or renewals of all such Secured
Obligations whether or not Mortgagor executes any extension agreement or renewal instrument and, in
each case, to the same extent as if such future advances were made on the date of the execution of
this Mortgage.

          SECTION 2.5. Secured Amount. The maximum aggregate amount of all indebtedness that
is, or under any contingency may be secured at the date hereof or at any time
hereafter by this Mortgage is $[                    ]2 (the “Secured Amount”), plus, to the extent
permitted by applicable law, collection costs, sums advanced for the payment of taxes, assessments,
maintenance and repair charges, insurance premiums and any other costs incurred to protect the
security encumbered hereby or the lien hereof, expenses incurred by the Mortgagee by reason of any
default by the Mortgagor under the terms hereof, together with interest thereon, all of which
amount shall be secured hereby.

          SECTION 2.6. Last Dollar Secured. So long as the aggregate amount of the Secured
Obligations exceeds the Secured Amount, any payments and repayments of the Secured Obligations
shall not be deemed to be applied against or to reduce the Secured Amount.

 

			
	2	 	THE LOAN AMOUNT IS $960,000,000; IF STATE ALLOWS FOR MORTGAGES TO BE FOR MORE THAN THE
LOAN AMOUNT IN CASE THE CREDIT AGREEMENT IS AMENDED, USE $1,000,000,000; IF STATE HAS MORTGAGE
TAX, USE THE AGREED UPON VALUE OF THE PROPERTY.

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          SECTION 2.7. No Release. Nothing set forth in this Mortgage shall relieve the Mortgagor
from the performance of any term, covenant, condition or agreement on the Mortgagor’s part to
be performed or observed under or in respect of any of the Mortgaged Property or from any
liability to any person under or in respect of any of the Mortgaged Property or shall impose
any obligation on the Mortgagee or any other Secured Party to perform or observe any such
term, covenant, condition or agreement on the Mortgagor’s part to be so performed or observed
or shall impose any liability on the Mortgagee or any other Secured Party for any act or
omission on the part of the Mortgagor relating thereto or for any breach of any representation
or warranty on the part of the Mortgagor contained in this Mortgage or any other Loan
Document, or under or in respect of the Mortgaged Property or made in connection herewith or
therewith. The obligations of the Mortgagor contained in this Section 2.7 shall
survive the termination hereof and the discharge of the Mortgagor’s other obligations under
this Mortgage and the other Loan Documents.

ARTICLE III.

REPRESENTATIONS AND WARRANTIES OF MORTGAGOR

          SECTION 3.1. Intentionally Omitted.

          SECTION 3.2. Warranty of Title. The Mortgagor represents and warrants that:

     (i) it has good title to the interest it purports to own or hold in and to all
rights and appurtenances to or that constitute a portion of the Mortgaged Property;

     (ii) it has good and marketable fee simple title to the Premises and the Landlord’s
interest and estate under or in respect of the Leases and good title to the interest it
purports to own or hold in and to each of the Permits, the Contracts and the Records, in each
case subject to no Liens, except for (x) as of the date hereof, Permitted Liens and Liens in
favor of the Mortgagee pursuant to the Security Documents and (y) hereafter, Permitted Liens;
and;

     (iii) upon recordation in the official records in the county (or other applicable
jurisdiction) in which the Premises are located this Mortgage will create and constitute a
valid and enforceable first priority Lien on the Mortgaged Property in favor of the Mortgagee
for the benefit of the Secured Parties, and, to the extent any of the Mortgaged Property shall
consist of Fixtures, a first priority security interest in the Fixtures, which first priority
Lien and first priority security interest are, as of the date hereof and hereafter, subject
only to Permitted Liens.

          SECTION 3.3. Condition of Mortgaged Property. The Mortgagor represents and
warrants that:

     (i) the Premises and the present and contemplated use and occupancy thereof comply
with all applicable zoning ordinances, building codes, land use and subdivision

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laws, setback or other development and use requirements of Governmental Authorities and with
all private restrictions and agreements affecting the Mortgaged Property whether or not
recorded, except where the failure so to comply could not result in a Property Material
Adverse Effect;

     (ii) as of the date hereof, Mortgagor has neither received any notice of nor has any
knowledge of any disputes regarding boundary lines, location, encroachments or possession of
any portions of the Mortgaged Property and has no knowledge of any state of facts that may
exist which could give rise to any such claims;

     (iii) no portion of the Premises is located in an area identified by the Federal
Emergency Management Agency or any successor thereto as an area having special flood hazards
pursuant to the Flood Insurance Acts promulgated by the Federal Emergency Management Agency
or any successor thereto or, if any portion of the Premises is located within such area as
evidenced by the Federal Emergency Management Agency Standard Flood Hazard Determination
provided to the Mortgagee by the Mortgagor pursuant to Section 4.01(o)(ix) of the
Credit Agreement, the Mortgagor has obtained the flood insurance prescribed in Section
5.04(c) of the Credit Agreement hereof;

     (iv) the Premises are assessed for real estate tax purposes as one or more wholly
independent tax lot or lots, separate from any adjoining land or improvements not
constituting a portion of such lot or lots, and no other land or improvement is assessed and
taxed together with the Premises or any portion thereof; and

     (v) there are no options or rights of first refusal to purchase or acquire all or
any portion of the Mortgaged Property.

          SECTION 3.4. Property Charges. The Mortgagor represents and warrants that all
Property Charges imposed upon or assessed against the Mortgaged Property have been paid and
discharged except to the extent such Property Charges constitute, as of the date hereof and
hereafter, a Permitted Lien.

ARTICLE IV.

CERTAIN COVENANTS OF MORTGAGOR

          SECTION 4.1. Payment and Performance. The Mortgagor shall pay and perform the
Secured Obligations in full as and when the same shall become due under the Loan Documents and when
they are required to be performed thereunder.

          SECTION 4.2. Title. The Mortgagor shall

     (i) (A) keep in effect all rights and appurtenances to or that constitute a part of
the Mortgaged Property except where the failure to keep in effect the same could not result in
a Property Material Adverse Effect and (B) protect, preserve and defend its interest in the
Mortgaged Property and title thereto;

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     (ii) (A) comply with each of the terms, conditions and provisions of any obligation
of the Mortgagor which is secured by the Mortgaged Property or the noncompliance with which
may result in the imposition of a Lien on the Mortgaged Property, subject to Permitted Liens,
(B) forever warrant and defend to the Mortgagee the Lien and security interests created and
evidenced hereby and the validity and priority hereof in any action or proceeding against the
claims of any and all persons whomsoever affecting or purporting to affect the Mortgaged
Property or any of the rights of the Mortgagee hereunder and (C) maintain this Mortgage as a
valid and enforceable first priority Lien on the Mortgaged Property and, to the extent any of
the Mortgaged Property shall consist of Fixtures, a first priority security interest in the
Mortgaged Property, which first priority Lien and security interest shall be subject only to
Permitted Liens; and

     (iii) promptly upon obtaining knowledge of the pendency of any proceedings for the
eviction of the Mortgagor from the Mortgaged Property or any part thereof by paramount title
or otherwise questioning the Mortgagor’s right, title and interest in, to and under the
Mortgaged Property as warranted in this Mortgage, or of any condition that could give rise to
any such proceedings, notify the Mortgagee thereof. The Mortgagee may participate in such
proceedings and the Mortgagor will deliver or cause to be delivered to the Mortgagee all
instruments requested by the Mortgagee to permit such participation. In any such proceedings,
the Mortgagee may be represented by counsel satisfactory to the Mortgagee at the reasonable
expense of the Mortgagor. If, upon the resolution of such proceedings, the Mortgagor shall
suffer a loss of the Mortgaged Property or any part thereof or interest therein and title
insurance proceeds shall be payable in connection therewith, such proceeds are hereby
assigned to and shall be paid to the Mortgagee to be applied as Net Cash Proceeds to the
payment of the Secured Obligations or otherwise in accordance with the provisions of Section
2.10 of the Credit Agreement.

     (iv) not initiate, join in or consent to any change in the zoning or any other
permitted use classification of the Premises which would have a Property Material Adverse
Effect without the prior written consent of the Mortgagee.

          SECTION 4.3. Inspection. Mortgagor shall permit Mortgagee, and its agents,
representatives and employees, upon reasonable prior notice to Mortgagor, to inspect the Mortgaged
Property and all books and records located thereon provided, that such inspections shall
not materially interfere with the use and operation of the Mortgaged Property.

          SECTION 4.4. Limitation on Liens; Transfer Restrictions.

          (i) Except for the Permitted Liens and the Lien of this Mortgage, the Mortgagor may not,
without the prior written consent of the Mortgagee, permit to exist or grant any Lien on all or any
part of the Mortgaged Property or suffer or allow any of the foregoing to occur by operation of law
or otherwise.

          (ii) Except to the extent permitted by the Credit Agreement, the Mortgagor may not,
without the prior written consent of the Mortgagee, sell, convey, assign, lease or otherwise
transfer all or any part of the Mortgaged Property.

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          SECTION 4.5. Insurance. The Mortgagor shall obtain and keep in full force and
effect the Insurance Policies required by the Credit Agreement pursuant to the terms thereof.

ARTICLE V.

CONCERNING ASSIGNMENT OF LEASES AND RENTS

          SECTION 5.1. Present Assignment; License to the Mortgagor.

          (i) Section 2.2 of this Mortgage constitutes a present, absolute, effective,
irrevocable and complete assignment by Mortgagor to Mortgagee of the Leases and Rents and the
right, subject to applicable law, to collect all sums payable to Mortgagor thereunder and apply the
same as Mortgagee may, in its sole discretion, determine to be appropriate to protect the security
afforded by this Mortgage (including the payment of reasonable costs and expenses in connection
with the maintenance, operation, improvement, insurance, taxes and upkeep of the Mortgaged
Property), which is not conditioned upon Mortgagee being in possession of the Premises. This
assignment is an absolute assignment and not an assignment for additional security only. The
Mortgagee hereby grants to the Mortgagor, however, a license to collect and apply the Rents and to
enforce the obligations of Tenants under the Leases. Immediately upon the occurrence of and during
the continuance of any Event of Default, whether or not legal proceedings have commenced and
without regard to waste, adequacy of security for the Secured Obligations or solvency of Mortgagor,
the license granted in the immediately preceding sentence shall automatically cease and terminate
without any notice by Mortgagee (such notice being hereby expressly waived by Mortgagor to the
extent permitted by applicable law), or any action or proceeding or the intervention of a receiver
appointed by a court.

          (ii) Mortgagor acknowledges that Mortgagee has taken all reasonable actions necessary to
obtain, and that upon recordation of this Mortgage, Mortgagee shall have, to the extent permitted
under applicable law, a valid and fully perfected, first priority, present assignment of the Rents
arising out of the Leases and all security for such Leases subject to the Permitted Liens and in
the case of security deposits, rights of depositors and Requirements of Law. Mortgagor acknowledges
and agrees that upon recordation of this Mortgage, Mortgagee’s interest in the Rents shall be
deemed to be fully perfected, “choate” and enforced as to Mortgagor and all third parties,
including, without limitation, any subsequently appointed trustee in any case under Title II of the
United States Code (the “Bankruptcy Code”), without the necessity of commencing a foreclosure
action with respect to this Mortgage, making formal demand for the Rents, obtaining the appointment
of a receiver or taking any other affirmative action.

          (iii) Without limitation of the absolute nature of the assignment of the Rents hereunder,
Mortgagor and Mortgagee agree that (a) this Mortgage shall constitute a “security agreement” for
purposes of Section 552(b) of the Bankruptcy Code, (b) the security interest created by this
Mortgage extends to property of Mortgagor acquired before the commencement of a case in bankruptcy
and to all amounts paid as Rents, and (c) such security interest shall extend to all Rents acquired
by the estate after the commencement of any case in bankruptcy.

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          SECTION 5.2. Collection of Rents by the Mortgagee.

          (i) Any Rents receivable by the Mortgagee hereunder, after payment of all proper costs and
expenses as Mortgagee may, in its sole discretion, determine to be appropriate (including the
payment of reasonable costs and expenses in connection with the maintenance, operation,
improvement, insurance, taxes and upkeep of the Mortgaged Property), shall be applied in accordance
with the provisions of Section 8.03 of the Credit Agreement. The Mortgagee shall be accountable to
the Mortgagor only for Rents actually received by the Mortgagee. The collection of such Rents and
the application thereof shall not cure or waive any Event of Default or waive, modify or affect
notice of any Event of Default or invalidate any act done pursuant to such notice.

          (ii) The Mortgagor hereby irrevocably authorizes and directs Tenant under each Lease to
rely upon and comply with any and all notices or demands from the Mortgagee for payment of Rents to
the Mortgagee and the Mortgagor shall have no claim against Tenant for Rents paid by Tenant to the
Mortgagee pursuant to such notice or demand.

          SECTION 5.3. Irrevocable Interest. All rights, powers and privileges of the
Mortgagee herein set forth are coupled with an interest and are irrevocable, subject to the terms
and conditions hereof, and the Mortgagor shall not take any action under the Leases or otherwise
which is inconsistent with this Mortgage or any of the terms hereof and any such action
inconsistent herewith or therewith shall be void.

ARTICLE VI.

TAXES AND CERTAIN STATUTORY LIENS

          SECTION 6.1. Payment of Property Charges. Unless and to the extent contested by
the Mortgagor in accordance with the provisions of the Credit Agreement, the Mortgagor shall pay
and discharge, or cause to be paid and discharged, from time to time prior to same becoming
delinquent, all Property Charges. The Mortgagor shall, upon the Mortgagee’s request, deliver to the
Mortgagee receipts evidencing the payment of all such Property Charges.

          SECTION 6.2. Stamp and Other Taxes. The Mortgagor shall pay any United States
documentary stamp taxes, with interest and fines and penalties, and any mortgage recording taxes,
with interest and fines and penalties, that may hereafter be levied, imposed or assessed under or
upon this Mortgage or the Secured Obligations or any instrument or transaction affecting or
relating to the same and in default thereof, the Mortgagee may advance the same and the amount so
advanced shall be payable by the Mortgagor to the Mortgagee in accordance with the provisions of
Section 2.15(c) of the Credit Agreement.

          SECTION 6.3. Certain Tax Law Changes. In the event of the passage after the date
hereof of any law deducting from the value of real property, for the purpose of taxation, amounts
in respect of any Lien thereon or changing in any way the laws for the taxation of mortgages or
debts secured by mortgages for state or local purposes or the manner of the collection of any
taxes, and imposing any taxes, either directly or indirectly, on this Mortgage or

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any other Loan Document which are payable by or assessed on the Mortgagee, the Mortgagor shall
promptly pay to the Mortgagee or the appropriate tax authority such amount or amounts as may be
necessary from time to time to pay any such taxes, assessments or other charges resulting
therefrom; provided, that if any such payment or reimbursement to the Mortgagee shall be
unlawful or taxable, or would constitute usury or render the indebtedness wholly or partially
usurious under applicable law, the Mortgagor shall pay or reimburse Mortgagee for payment of the
lawful and non-usurious portion thereof.

          SECTION 6.4. Proceeds of Tax Claim. In the event that the proceeds of any tax
claim are paid after the Mortgagee has exercised its right to foreclose the Lien hereof, such
proceeds shall be paid to the Mortgagee to satisfy any deficiency remaining after such foreclosure.
The Mortgagee shall retain its interest in the proceeds of any tax claim during any redemption
period. The amount of any such proceeds in excess of any deficiency claim of the Mortgagee shall in
a reasonably prompt manner be released to the Mortgagor.

ARTICLE VII.

CASUALTY EVENTS AND RESTORATION

          SECTION 7.1. Casualty Event. If there shall occur any Casualty Event (or, in the
case of any condemnation, taking or other proceeding in the nature thereof, upon the occurrence
thereof or notice of the commencement of any proceedings therefor), the Mortgagor shall promptly
send to the Mortgagee a written notice setting forth the nature and extent thereof. The proceeds
payable in respect of any such Casualty Event are hereby assigned and shall be paid to the
Mortgagee. The Net Cash Proceeds of each Casualty Event shall be applied, allocated and distributed
in accordance with the provisions of Section 2.10 of the
Credit Agreement.

          SECTION 7.2. Condemnation. In the case of any taking, condemnation or other
proceeding in the nature thereof, the Mortgagee may, at its option, participate in any proceedings
or negotiations which might result in any taking or condemnation and the Mortgagor shall deliver or
cause to be delivered to the Mortgagee all instruments reasonably requested by it to permit such
participation. The Mortgagee may be represented by counsel satisfactory to it at the reasonable
expense of the Mortgagor in connection with any such participation. The Mortgagor shall pay all
reasonable fees, costs and expenses incurred by the Mortgagee in connection therewith and in
seeking and obtaining any award or payment on account thereof. The Mortgagor shall take all steps
necessary to notify the condemning authority of such participation.

          SECTION 7.3. Restoration. In the event the Mortgagor is permitted or required to
perform any repairs or restoration to the Premises in accordance with the provisions of Section
2.10(f) of the Credit Agreement, the Mortgagor shall complete such repairs or restoration in
accordance with provisions thereof.

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ARTICLE VIII.

EVENTS OF DEFAULT AND REMEDIES

          SECTION 8.1. Remedies in Case of an Event of Default. If any Event of Default
shall have occurred and be continuing, the Mortgagee may at its option, in addition to any other
action permitted under this Mortgage or the Credit Agreement or by law, statute or in equity, take
one or more of the following actions to the greatest extent permitted by local law:

     (i) personally, or by its agents or attorneys, (A) enter into and upon and take
possession of all or any part of the Premises together with the books, records and accounts
of the Mortgagor relating thereto and, exclude the Mortgagor, its agents and servants wholly
therefrom, (B) use, operate, manage and control the Premises and conduct the business
thereof, (C) maintain and restore the Premises, (D) make all necessary or proper repairs,
renewals and replacements and such useful alterations thereto and thereon as the Mortgagee
may deem advisable, (E) manage, lease and operate the Premises and carry on the business
thereof and exercise all rights and powers of the Mortgagor with respect thereto either in
the name of the Mortgagor or otherwise or (F) collect and receive all Rents. The Mortgagee
shall be under no liability for or by reason of any such taking of possession, entry, removal
or holding, operation or management except that any amounts so received by the Mortgagee
shall be applied in accordance with the provisions of Section 8.03 of the Credit
Agreement.

     (ii) with or without entry, personally or by its agents or attorneys (A) sell the
Mortgaged Property and all estate, right, title and interest, claim and demand therein at one
or more sales in one or more parcels, in accordance with the provisions of Section 8.2
hereof or (B) institute and prosecute proceedings for the complete or partial foreclosure
of the Lien and security interests created and evidenced hereby; or

     (iii) take such steps to protect and enforce its rights whether by action, suit or
proceeding at law or in equity for the specific performance of any covenant, condition or
agreement in the Credit Agreement and the other Loan Documents, or in aid of the execution of
any power granted in this Mortgage, or for any foreclosure hereunder, or for the enforcement
of any other appropriate legal or equitable remedy or otherwise as the Mortgagee shall elect.

          SECTION
8.2. Sale of Mortgaged Property if Event of Default Occurs; Proceeds of
Sale.

          (i) If any Event of Default shall have occurred and be continuing, the Mortgagee may
institute an action to foreclose this Mortgage or take such other action as may be permitted and
available to the Mortgagee at law or in equity for the enforcement of the Credit Agreement and
realization on the Mortgaged Property and proceeds thereon through power of sale (if then available
under applicable law) or to final judgment and execution thereof for the Secured Obligations, and
in furtherance thereof the Mortgagee may sell the Mortgaged Property at one or more sales, as an
entirety or in parcels, at such time and place, upon such terms and

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after such notice thereof as may be required or permitted by law or statute or in equity. The
Mortgagee may execute and deliver to the purchaser at such sale a conveyance of the Mortgaged
Property in fee simple and an assignment or conveyance of all the Mortgagor’s Interest in the
Leases and the Mortgaged Property, each of which conveyances and assignments shall contain recitals
as to the Event of Default upon which the execution of the power of sale herein granted depends,
and the Mortgagor hereby constitutes and appoints the Mortgagee the true and lawful attorney(s) in
fact of the Mortgagor to make any such recitals, sale, assignment and conveyance, and all of the
acts of the Mortgagee as such attorney in fact are hereby ratified and confirmed. The Mortgagor
agrees that such recitals shall be binding and conclusive upon the Mortgagor and that any
assignment or conveyance to be made by the Mortgagee shall divest the Mortgagor of all right,
title, interest, equity and right of redemption, including any statutory redemption, in and to the
Mortgaged Property. The power and agency hereby granted are coupled with an interest and are
irrevocable by death or dissolution, or otherwise, and are in addition to any and all other
remedies which the Mortgagee may have hereunder, at law or in equity. So long as the Secured
Obligations, or any part thereof, remain unpaid, the Mortgagor agrees that possession of the
Mortgaged Property by the Mortgagor, or any person claiming under the Mortgagor, shall be as
tenant, and, in case of a sale under power or upon foreclosure as provided in this Mortgage, the
Mortgagor and any person in possession under the Mortgagor, as to whose interest such sale was not
made subject, shall, at the option of the purchaser at such sale, then become and be tenants
holding over, and shall forthwith deliver possession to such purchaser, or be summarily
dispossessed in accordance with the laws applicable to tenants holding over. In case of any sale
under this Mortgage by virtue of the exercise of the powers herein granted, or pursuant to any
order in any judicial proceeding or otherwise, the Mortgaged Property may be sold as an entirety or
in separate parcels in such manner or order as the Mortgagee in its sole discretion may elect. One
or more exercises of powers herein granted shall not extinguish or exhaust such powers, until the
entire Mortgaged Property is sold or all amounts secured hereby are paid in full.

          (ii) The
proceeds of any sale made under or by virtue of this
Article VIII, together with any other sums which then may be held by the Mortgagee under this Mortgage,
whether under the provisions of this Article VIII or otherwise, shall be applied in
accordance with the provisions of Section 8.03 of the Credit Agreement.

          (iii) The Mortgagee (on behalf of any Secured Party or on its own behalf) or any Lender or
any of their respective Affiliates may bid for and acquire the Mortgaged Property or any part
thereof at any sale made under or by virtue of this Article VIII and, in lieu of paying
cash therefor, may make settlement for the purchase price by crediting against the purchase price
the unpaid amounts (whether or not then due) owing to the Mortgagee, or such Lender in respect of
the Secured Obligations, after deducting from the sales price the expense of the sale and the costs
of the action or proceedings and any other sums that the Mortgagee or such Lender is authorized to
deduct under this Mortgage.

          (iv) The Mortgagee may adjourn from time to time any sale by it to be made under or by
virtue hereof by announcement at the time and place appointed for such sale or for such adjourned
sale or sales, and, the Mortgagee, without further notice or publication, may make such sale at the
time and place to which the same shall be so adjourned.

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          (v) If the Premises are comprised of more than one parcel of land, the Mortgagee may
take any of the actions authorized by this Section 8.2 in respect of any or a number
of individual parcels.

          SECTION 8.3. Additional Remedies in Case of an Event of Default.

          (i) The Mortgagee shall be entitled to recover judgment as aforesaid either before, after
or during the pendency of any proceedings for the enforcement of the provisions hereof and, to the
extent permitted by applicable law, the right of the Mortgagee to recover such judgment shall not
be affected by any entry or sale hereunder, or by the exercise of any other right, power or remedy
for the enforcement of the provisions hereof, or the foreclosure of, or absolute conveyance
pursuant to, this Mortgage. In case of proceedings against the Mortgagor in insolvency or
bankruptcy or any proceedings for its reorganization or involving the liquidation of its assets,
the Mortgagee shall be entitled to prove the whole amount of principal and interest and other
payments, charges and costs due in respect of the Secured Obligations to the full amount thereof
without deducting therefrom any proceeds obtained from the sale of the whole or any part of the
Mortgaged Property; provided, however, that in no case shall the Mortgagee receive a
greater amount than the aggregate of such principal, interest and such other payments, charges and
costs (with interest at the Default Rate) from the proceeds of the sale of the Mortgaged Property
and the distribution from the estate of the Mortgagor.

          (ii) Any recovery of any judgment by the Mortgagee and any levy of any execution under any
judgment upon the Mortgaged Property shall not affect in any manner or to any extent the Lien and
security interests created and evidenced hereby upon the Mortgaged Property or any part thereof, or
any conveyances, powers, rights and remedies of the Mortgagee hereunder, but such conveyances,
powers, rights and remedies shall continue unimpaired as before.

          (iii) Any monies collected by the Mortgagee under this Section 8.3 shall be
applied in accordance with the provisions of Section 8.2(ii).

          SECTION 8.4. Legal Proceedings After an Event of Default.

          (i) After the occurrence of any Event of Default and immediately upon the commencement of
any action, suit or legal proceedings to obtain judgment for the Secured Obligations or any part
thereof, or of any proceedings to foreclose the Lien and security interest created and evidenced
hereby or otherwise to enforce the provisions hereof or of any other proceedings in aid of the
enforcement hereof, the Mortgagor shall enter its voluntary appearance in such action, suit or
proceeding.

          (ii) Upon the occurrence and during the continuance of an Event of Default, the Mortgagee
shall be entitled forthwith as a matter of right, concurrently or independently of any other right
or remedy hereunder either before or after declaring the Secured Obligations or any part thereof to
be due and payable, to the appointment of a receiver without giving notice to any party and without
regard to the adequacy or inadequacy of any security for the Secured Obligations or the solvency or
insolvency of any person or entity then legally or equitably liable for the Secured Obligations or
any portion thereof. The Mortgagor hereby consents to the

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appointment of such receiver. Notwithstanding the appointment of any receiver, the Mortgagee shall
be entitled as pledgee to the possession and control of any cash, deposits or instruments at the
time held by or payable or deliverable under the terms of the Credit Agreement to the Mortgagee.

     (iii) The Mortgagor shall not (A) at any time insist upon, or plead, or in any manner
whatsoever claim or take any benefit or advantage of any stay or extension or moratorium law, any
exemption from execution or sale of the Mortgaged Property or any part thereof, wherever enacted,
now or at any time hereafter in force, which may affect the covenants and terms of performance
hereof, (B) claim, take or insist on any benefit or advantage of any law now or hereafter in force
providing for the valuation or appraisal of the Mortgaged Property, or any part thereof, prior to
any sale or sales of the Mortgaged Property which may be made pursuant to this Mortgage, or
pursuant to any decree, judgment or order of any court of competent jurisdiction or (C) after any
such sale or sales, claim or exercise any right under any statute heretofore or hereafter enacted
to redeem the property so sold or any part thereof. To the extent permitted by applicable law, the
Mortgagor hereby expressly (X) waives all benefit or advantage of any such law or laws, including,
without limitation, any statute of limitations applicable to this Mortgage, (Y) waives any
objection which it may now or hereafter have to the laying of venue of any action, suit or
proceeding brought in connection with this Mortgage and further waives and agrees not to plead that
any such action, suit or proceeding brought in any such court has been brought in an inconvenient
forum and (Z) covenants not to hinder, delay or impede the execution of any power granted or
delegated to the Mortgagee by this Mortgage but to suffer and permit the execution of every such
power as though no such law or laws had been made or enacted. The Mortgagee shall not be liable for
any incorrect or improper payment made pursuant to this Article VIII in the absence of
gross negligence or willful misconduct.

     SECTION 8.5. Remedies Not Exclusive. No remedy conferred upon or reserved to the
Mortgagee by this Mortgage is intended to be exclusive of any other remedy or remedies, and each
and every such remedy shall be cumulative and shall be in addition to every other remedy given
under this Mortgage or now or hereafter existing at law or in equity. Any delay or omission of the
Mortgagee to exercise any right or power accruing on any Event of Default shall not impair any such
right or power and shall not be construed to be a waiver of or acquiescence in any such Event of
Default. Every power and remedy given by this Mortgage may be exercised from time to time
concurrently or independently, when and as often as may be deemed expedient by the Mortgagee in
such order and manner as the Mortgagee, in its sole discretion, may elect. If the Mortgagee accepts
any monies required to be paid by the Mortgagor under this Mortgage after the same become due, such
acceptance shall not constitute a waiver of the right either to require prompt payment, when due,
of all other sums secured by this Mortgage or to declare an Event of Default with regard to
subsequent defaults. If the Mortgagee accepts any monies required to be paid by the Mortgagor under
this Mortgage in an amount less than the sum then due, such acceptance shall be deemed an
acceptance on account only and on the condition that it shall not constitute a waiver of the
obligation of the Mortgagor to pay the entire sum then due, and the Mortgagor’s failure to pay the
entire sum then due shall be and continue to be a default hereunder notwithstanding acceptance of
such amount on account.

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ARTICLE IX.

SECURITY AGREEMENT AND FIXTURE FILING

     SECTION 9.1. Security Agreement. To the extent that the Mortgaged Property
includes personal property or items of personal property which are or are to become fixtures under
applicable law, this Mortgage shall also be construed as a security agreement under the UCC; and,
upon and during the continuance of an Event of Default, the Mortgagee shall be entitled with
respect to such personal property to exercise all remedies hereunder, all remedies available under
the UCC with respect to fixtures and all other remedies available under applicable law. Without
limiting the foregoing, such personal property may, at the Mortgagee’s option, (i) be sold
hereunder together with any sale of any portion of the Mortgaged Property or otherwise, (ii) be
sold pursuant to the UCC, or (iii) be dealt with by the Mortgagee in any other manner permitted
under applicable law. The Mortgagee may require the Mortgagor to assemble such personal property
and make it available to the Mortgagee at a place to be designated by the Mortgagee. The Mortgagor
acknowledges and agrees that a disposition of the personal property in accordance with the
Mortgagee’s rights and remedies in respect to the Mortgaged Property as heretofore provided is a
commercially reasonable disposition thereof; provided, however, that the Mortgagee shall give the
Mortgagor not less than ten (10) days’ prior notice of the time and place of any intended
disposition.

     SECTION 9.2. Fixture Filing. To the extent that the Mortgaged Property includes
items of personal property which are or are to become fixtures under applicable law, and to the
extent permitted under applicable law, the filing hereof in the real estate records of the county
in which such Mortgaged Property is located shall also operate from the time of filing as a fixture
filing with respect to such Mortgaged Property, and the following information is applicable for the
purpose of such fixture filing, to wit:

	 	 	 
	Name and Address of the debtor:

	 	Name and Address of the secured party:
	

	 	 
	The Mortgagor having the address
described in the Preamble hereof.

	 	The Mortgagee having the address
described in the Preamble hereof, from
which address information concerning
the security interest may be obtained.
	The Mortgagor is a corporation
organized under the laws of the State
of Texas whose Organization
Number is 0800204347, and whose
Taxpayer Identification Number is
41-2098321.
	 	 

This Financing Statement covers the following types or items of property:

The Mortgaged Property.

This instrument covers goods or items of personal property which are or are to
become fixtures upon the Premises.

The name of the record owner of the Premises on which such fixtures are or are to
be located is the Mortgagor.

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In addition, Mortgagor authorizes the Mortgagee to file appropriate financing and continuation
statements under the UCC in effect in the jurisdiction in which the Mortgaged Property is located
as may be required by law in order to establish, preserve and protect the liens and security
interests intended to be granted to the Mortgagee pursuant to this Mortgage in the Mortgaged
Property.

ARTICLE X.

FURTHER ASSURANCES

     SECTION
10.1. Recording Documentation To Assure Security. The Mortgagor shall, forthwith
after the execution and delivery hereof and thereafter, from time to time, cause this Mortgage and
any financing statement, continuation statement or similar instrument relating to any thereof or to
any property intended to be subject to the Lien hereof to be filed, registered and recorded in such
manner and in such places as may be required by any present or future law in order to publish
notice of and fully to protect the validity and priority thereof or the Lien hereof purported to be
created upon the Mortgaged Property and the interest and rights of the Mortgagee therein. The
Mortgagor shall pay or cause to be paid all taxes and fees incident to such filing, registration
and recording, and all expenses incident to the preparation, execution and acknowledgment thereof,
and of any instrument of further assurance, and all federal or state stamp taxes or other taxes,
duties and charges arising out of or in connection with the execution and delivery of such
instruments.

     SECTION 10.2. Further Acts. The Mortgagor shall, at the sole cost and expense of
the Mortgagor, do, execute, acknowledge and deliver all and every such further acts, deeds,
conveyances, mortgages, assignments, notices of assignment, transfers, financing statements,
continuation statements, instruments and assurances as the Mortgagee shall from time to time
request, which may be necessary in the judgment of the Mortgagee from time to time to assure,
perfect, convey, assign, pledge, transfer and confirm unto the Mortgagee, the property and rights
hereby conveyed or assigned or which the Mortgagor may be or may hereafter become bound to convey
or assign to the Mortgagee or for carrying out the intention or facilitating the performance of the
terms hereof or the filing, registering or recording hereof. Without limiting the generality of the
foregoing, in the event that the Mortgagee desires to exercise any remedies, consensual rights or
attorney-in-fact powers set forth in this Mortgage and determines it necessary to obtain any
approvals or consents of any Governmental Authority or any other person therefor, then, upon the
reasonable request of the Mortgagee, the Mortgagor agrees to use its best efforts to assist and aid
the Mortgagee to obtain as soon as practicable any necessary approvals or consents for the exercise
of any such remedies, rights and powers. In the event the Mortgagor shall fail after demand to
execute any instrument or take any action required to be executed or taken by the Mortgagor under
this Section 10.2, the Mortgagee may execute or take the same as the attorney-in-fact for
the Mortgagor, such power of attorney being coupled with an interest and is irrevocable.

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     SECTION 10.3. Additional Security. Without notice to or consent of the Mortgagor
and without impairment of the Lien and rights created by this Mortgage, the Mortgagee may accept
(but the Mortgagor shall not be obligated to furnish) from the Mortgagor or from any other person,
additional security for the Secured Obligations. Neither the giving hereof nor the acceptance of
any such additional security shall prevent the Mortgagee from resorting, first, to such additional
security, and, second, to the security created by this Mortgage without affecting the Mortgagee’s
Lien and rights under this Mortgage.

ARTICLE XI.

MISCELLANEOUS

     SECTION 11.1. Covenants To Run with the Land. All of the grants, covenants, terms,
provisions and conditions in this Mortgage shall run with the Land and shall apply to, and bind the
successors and assigns of, the Mortgagor. If there shall be more than one mortgagor with respect to
the Mortgaged Property, the covenants and warranties hereof shall be joint and several.

     SECTION 11.2. No Merger. The rights and estate created by this Mortgage shall not,
under any circumstances, be held to have merged into any other estate or interest now owned or
hereafter acquired by the Mortgagee unless the Mortgagee shall have consented to such merger in
writing.

     SECTION 11.3. Concerning Mortgagee.

     (i) The Mortgagee has been appointed as Collateral Agent pursuant to the Credit Agreement.
The actions of the Mortgagee hereunder are subject to the provisions of the Credit Agreement. The
Mortgagee shall have the right hereunder to make demands, to give notices, to exercise or refrain
from exercising any rights, and to take or refrain from taking action (including, without
limitation, the release or substitution of the Mortgaged Property), in accordance with this
Mortgage and the Credit Agreement. The Mortgagee may employ agents and attorneys-in-fact in
connection herewith and shall not be liable for the negligence or misconduct of any such agents or
attorneys-in-fact selected by it in good faith. The Mortgagee may resign and a successor Mortgagee
may be appointed in the manner provided in the Credit Agreement. Upon the acceptance of any
appointment as the Mortgagee by a successor Mortgagee, that successor Mortgagee shall thereupon
succeed to and become vested with all the rights, powers, privileges and duties of the retiring
Mortgagee under this Mortgage, and the retiring Mortgagee shall thereupon be discharged from its
duties and obligations under this Mortgage. After any retiring Mortgagee’s resignation, the
provisions hereof shall inure to its benefit as to any actions taken or omitted to be taken by it
under this Mortgage while it was the Mortgagee.

     (ii) The Mortgagee shall be deemed to have exercised reasonable care in the custody and
preservation of the Mortgaged Property in its possession if such Mortgaged Property is accorded
treatment substantially equivalent to that which the Mortgagee, in its individual capacity, accords
its own property consisting of similar instruments or interests, it being

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understood that neither the Mortgagee nor any of the Secured Parties shall have responsibility for
taking any necessary steps to preserve rights against any person with respect to any Mortgaged
Property.

     (iii) The Mortgagee shall be entitled to rely upon any written notice, statement,
certificate, order or other document or any telephone message believed by it to be genuine and
correct and to have been signed, sent or made by the proper person, and, with respect to all
matters pertaining to this Mortgage and its duties hereunder, upon advice of counsel selected by
it.

     (iv) With respect to any of its rights and obligations as a Lender, the Mortgagee shall
have and may exercise the same rights and powers hereunder. The term “Lenders,” “Lender” or any
similar terms shall, unless the context clearly otherwise indicates, include the Mortgagee in its
individual capacity as a Lender. The Mortgagee may accept deposits from, lend money to, and
generally engage in any kind of banking, trust or other business with the Mortgagor or any
Affiliate of the Mortgagor to the same extent as if the Mortgagee were not acting as Collateral
Agent.

     (v) If any portion of the Mortgaged Property also constitutes collateral granted by
Mortgagor to the Mortgagee to secure the Secured Obligations under any other deed of trust,
mortgage, security agreement, pledge or instrument of any type, in the event of any conflict
between the provisions hereof and the provisions of such other deed of trust, mortgage, security
agreement, pledge or instrument of any type in respect of such collateral, the Mortgagee, in its
sole discretion, shall select which provision or provisions shall control.

     SECTION
11.4. Mortgagee May Perform; Mortgagee Appointed Attorney-in-Fact. If the
Mortgagor shall fail to perform any covenants contained in this Mortgage (including, without
limitation, the Mortgagor’s covenants to (i) pay the premiums in respect of all required insurance
policies hereunder or under the Credit Agreement, (ii) pay Property Charges, (iii) make repairs,
(iv) discharge Liens or (v) pay or perform any obligations of the Mortgagor under any Mortgaged
Property) or if any warranty on the part of the Mortgagor contained herein shall be breached, the
Mortgagee may (but shall not be obligated to), after five (5) Business Days notice to Mortgagor, do
the same or cause it to be done or remedy any such breach, and may
expend funds for such purpose;
provided, however, that the Mortgagee shall in no event be bound to inquire into the validity of
any tax, lien, imposition or other obligation which the Mortgagor fails to pay or perform as and
when required hereby and which the Mortgagor does not contest in accordance with the provisions of
the Credit Agreement. Any and all amounts so expended by the Mortgagee shall be paid by the
Mortgagor in accordance with the provisions of Section 11.03 of the Credit Agreement.
Neither the provisions of this Section 11.4 nor any action taken by the Mortgagee pursuant
to the provisions of this Section 11.4 shall prevent any such failure to observe any
covenant contained in this Mortgage nor any breach of warranty from constituting an Event of
Default. The Mortgagor hereby appoints the Mortgagee its attorney-in-fact, with full authority in
the place and stead of the Mortgagor and in the name of the Mortgagor, or otherwise, from time to
time in the Mortgagee’s discretion to take any action and to execute any instrument consistent with
the terms hereof and the other Loan Documents which the Mortgagee may deem necessary or advisable
to accomplish the purposes hereof. The foregoing grant of authority is a power of attorney coupled
with an interest and such appointment

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shall be irrevocable for the term hereof. The Mortgagor hereby ratifies all that such attorney
shall lawfully do or cause to be done by virtue hereof.

     SECTION
11.5. Continuing Security Interest; Assignment. This Mortgage shall create a
continuing Lien on and security interest in the Mortgaged Property and shall (i) be binding upon
the Mortgagor, its successors and assigns, (ii) inure, together with the rights and remedies of the
Mortgagee hereunder, to the benefit of the Mortgagee for the benefit of the Secured Parties and
each of their respective successors, transferees and assigns and (iii) in the event there is more
than one mortgagor party hereto, all undertakings hereunder shall be deemed joint and several. No
other persons (including, without limitation, any other creditor of any Loan Party) shall have any
interest herein or any right or benefit with respect hereto. Without limiting the generality of the
foregoing clause (ii), but subject, however, to the provisions of the Credit Agreement, any Lender
may assign or otherwise transfer any indebtedness held by it secured by this Mortgage to any other
person, and such other person shall thereupon become vested with all the benefits in respect
thereof granted to such Lender, herein or otherwise.

     SECTION 11.6. Termination; Release. When all the Secured Obligations have been paid
in full and the Commitments of the Lenders to make any Loan under the Credit Agreement shall have
expired or been sooner terminated in accordance with the provisions of the Credit Agreement, this
Mortgage shall terminate. Upon termination hereof or any release of the Mortgaged Property or any
portion thereof in accordance with the provisions of the Credit Agreement, the Mortgagee shall,
upon the request and at the sole cost and expense of the Mortgagor, forthwith assign, transfer and
deliver to the Mortgagor, against receipt and without recourse to or warranty by the Mortgagee,
such of the Mortgaged Property to be released (in the case of a release) as may be in possession of
the Mortgagee and as shall not have been sold or otherwise applied pursuant to the terms hereof,
and, with respect to any other Mortgaged Property, proper documents and instruments (including
UCC-3 termination statements or releases) acknowledging the termination hereof or the release of
such Mortgaged Property, as the case may be.

     SECTION 11.7. Modification in Writing. No amendment, modification, supplement,
termination or waiver of or to any provision hereof, nor consent to any departure by the Mortgagor
therefrom, shall be effective unless the same shall be done in accordance with the terms of the
Credit Agreement and unless in writing and signed by the Mortgagee. Any amendment, modification or
supplement of or to any provision hereof, any waiver of any provision hereof and any consent to any
departure by the Mortgagor from the terms of any provision hereof shall be effective only in the
specific instance and for the specific purpose for which made or given. Except where notice is
specifically required by this Mortgage or any other Loan Document, no notice to or demand on the
Mortgagor in any case shall entitle the Mortgagor to any other or further notice or demand in
similar or other circumstances.

     SECTION
11.8. Notices. Unless otherwise provided herein or in the Credit Agreement,
any notice or other communication herein required or permitted to be given shall be given in the
manner and become effective as set forth in the Credit Agreement, if to the Mortgagor or the
Mortgagee, addressed to it at the address set forth in the Credit Agreement, or in each case at
such other address as shall be designated by such party in a written notice to the other party
complying as to delivery with the terms of this Section 11.8.

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     SECTION
11.9. GOVERNING LAW; SERVICE OF PROCESS; WAIVER OF JURY TRIAL. THIS MORTGAGE
SHALL BE GOVERNED BY, AND SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE LAWS OF THE STATE
IN WHICH THE PREMISES ARE LOCATED, WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAWS, EXCEPT TO THE
EXTENT THAT THE VALIDITY OR PERFECTION OF THE SECURITY INTEREST HEREUNDER, OR REMEDIES HEREUNDER,
IN RESPECT OF ANY PARTICULAR ITEM OR TYPE OF MORTGAGED PROPERTY ARE GOVERNED BY THE LAWS OF A
JURISDICTION OTHER THAN SUCH STATE. MORTGAGOR AGREES THAT SERVICE OF PROCESS IN ANY PROCEEDING MAY
BE EFFECTED BY MAILING A COPY THEREOF BY REGISTERED OR CERTIFIED MAIL (OR ANY SUBSTANTIALLY SIMILAR
FORM OF MAIL), POSTAGE PREPAID, TO BORROWER AT ITS ADDRESS SET FORTH IN THE CREDIT AGREEMENT OR AT
SUCH OTHER ADDRESS OF WHICH THE MORTGAGEE SHALL HAVE BEEN NOTIFIED PURSUANT THERETO. IF ANY AGENT
APPOINTED BY MORTGAGOR REFUSES TO ACCEPT SERVICE, MORTGAGOR HEREBY AGREES THAT SERVICE UPON IT BY
MAIL SHALL CONSTITUTE SUFFICIENT NOTICE. NOTHING HEREIN SHALL AFFECT THE RIGHT TO SERVE PROCESS IN
ANY OTHER MANNER PERMITTED BY LAW OR SHALL LIMIT THE RIGHT OF MORTGAGEE TO BRING PROCEEDINGS
AGAINST MORTGAGOR IN THE COURTS OF ANY OTHER JURISDICTION. THE MORTGAGOR HEREBY IRREVOCABLY WAIVES
ALL RIGHT TO A TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR RELATING
TO THIS MORTGAGE OR THE TRANSACTIONS CONTEMPLATED HEREBY.

     SECTION
11.10. Severability of Provisions. Any provision hereof which is prohibited or
unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of
such prohibition or unenforceability without invalidating the remaining provisions hereof or affecting the validity or
enforceability of such provision in any other jurisdiction.

     SECTION 11.11. Relationship. The relationship of the Mortgagee to the Mortgagor
hereunder is strictly and solely that of lender and borrower and mortgagor and mortgagee and
nothing contained in the Credit Agreement, this Mortgage or any other document or instrument now
existing and delivered in connection therewith or otherwise in connection with the Secured
Obligations is intended to create, or shall in any event or under any circumstance be construed as
creating a partnership, joint venture, tenancy-in-common, joint tenancy or other relationship of
any nature whatsoever between the Mortgagee and the Mortgagor other than as lender and borrower and
mortgagor and mortgagee.

     SECTION 11.12. No Credit for Payment of Taxes or Impositions. The Mortgagor shall not
be entitled to any credit against the principal, premium, if any, or interest payable under the
Credit Agreement, and the Mortgagor shall not be entitled to any credit against any other sums
which may become payable under the terms thereof or hereof, by reason of the payment of any
Property Charges on the Mortgaged Property or any part thereof.

     SECTION 11.13. No Claims Against the Mortgagee. Nothing contained in this Mortgage
shall constitute any consent or request by the Mortgagee, express or implied, for the performance
of any labor or services or the furnishing of any materials or other property in

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respect of the Premises or any part thereof, nor as giving the Mortgagor any right, power or
authority to contract for or permit the performance of any labor or services or the furnishing of
any materials or other property in such fashion as would permit the making of any claim against the
Mortgagee in respect thereof or any claim that any Lien based on the performance of such labor or
services or the furnishing of any such materials or other property is prior to the Lien hereof.

     SECTION 11.14. Mortgagee’s Right To Sever Indebtedness.

     (i) The Mortgagor acknowledges that (A) the Mortgaged Property does not constitute the
sole source of security for the payment and performance of the Secured Obligations and that the
Secured Obligations are also secured by property of the Mortgagor and its Affiliates in other
jurisdictions (all such property, collectively, the
“Collateral”), (B) the number of such
jurisdictions and the nature of the transaction of which this instrument is a part are such that it
would have been impracticable for the parties to allocate to each item of Collateral a specific
loan amount and to execute in respect of such item a separate credit agreement and (C) the
Mortgagor intends that the Mortgagee have the same rights with respect to the Mortgaged Property,
in foreclosure or otherwise, that the Mortgagee would have had if each item of Collateral had been
secured, mortgaged or pledged pursuant to a separate credit agreement, mortgage or security
instrument. In furtherance of such intent, the Mortgagor agrees that the Mortgagee may at any time
by notice (an “Allocation Notice”) to the Mortgagor allocate a portion (the “Allocated
Indebtedness”) of the Secured Obligations to the Mortgaged Property and sever from the remaining
Secured Obligations the Allocated Indebtedness. From and after the giving of an Allocation Notice
with respect to the Mortgaged Property, the Secured Obligations hereunder shall be limited to the
extent set forth in the Allocation Notice and (as so limited) shall, for all purposes, be construed
as a separate loan obligation of the Mortgagor unrelated to the other transactions contemplated by
the Credit Agreement, any other Loan Document or any document related to any thereof. To the extent
that the proceeds on any foreclosure of the Mortgaged Property shall exceed the Allocated
Indebtedness, such proceeds shall belong to the Mortgagor and shall not be available hereunder to
satisfy any Secured Obligations of the Mortgagor other than the Allocated Indebtedness. In any
action or proceeding to foreclose the Lien hereof or in connection with any power of sale,
foreclosure or other remedy exercised under this Mortgage commenced after the giving by the
Mortgagee of an Allocation Notice, the Allocation Notice shall be conclusive proof of the limits of
the Secured Obligations hereby secured, and the Mortgagor may introduce, by way of defense or
counterclaim, evidence thereof in any such action or proceeding. Notwithstanding any provision of
this Section 11.14, the proceeds received by the Mortgagee pursuant to this Mortgage shall
be applied by the Mortgagee in accordance with the provisions of Section 8.03 of the Credit
Agreement.

     (ii) The Mortgagor hereby waives to the greatest extent permitted under law the right to a
discharge of any of the Secured Obligations under any statute or rule of law now or hereafter in
effect which provides that foreclosure of the Lien hereof or other remedy exercised under this
Mortgage constitutes the exclusive means for satisfaction of the Secured Obligations or which makes
unavailable a deficiency judgment or any subsequent remedy because the Mortgagee elected to proceed
with a power of sale, foreclosure or such other remedy or because of any failure by the Mortgagee
to comply with laws that prescribe conditions to the entitlement to a deficiency judgment. In the
event that, notwithstanding the foregoing waiver, any court

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shall for any reason hold that the Mortgagee is not entitled to a deficiency judgment, the
Mortgagor shall not (A) introduce in any other jurisdiction such judgment as a defense to
enforcement against the Mortgagor of any remedy in the Credit Agreement or any other Loan Document
or (B) seek to have such judgment recognized or entered in any other jurisdiction, and any such
judgment shall in all events be limited in application only to the state or jurisdiction where
rendered.

     (iii) In the event any instrument in addition to the Allocation Notice is necessary to
effectuate the provisions of this Section 11.14, including, without limitation, any
amendment to this Mortgage, any substitute promissory note or affidavit or certificate of any kind,
the Mortgagee may execute, deliver or record such instrument as the attorney-in-fact of the
Mortgagor. Such power of attorney is coupled with an interest and is irrevocable.

     (iv) Notwithstanding anything set forth herein to the contrary, the provisions of this
Section 11.14 shall be effective only to the maximum extent permitted by law.

ARTICLE XII.

INTERCREDITOR AGREEMENT

     SECTION 12.1. Intercreditor Agreement. NOTWITHSTANDING ANYTHING HEREIN TO THE
CONTRARY, THE LIEN AND SECURITY INTEREST GRANTED TO THE COLLATERAL AGENT, FOR THE BENEFIT OF THE
SECURED PARTIES, PURSUANT TO THIS MORTGAGE AND THE EXERCISE OF ANY RIGHT OR REMEDY BY THE
COLLATERAL AGENT HEREUNDER ARE SUBJECT TO THE PROVISIONS OF THE INTERCREDITOR AGREEMENT, DATED AS
OF JULY 6, 2007 (AS AMENDED, RESTATED, AMENDED AND RESTATED, SUPPLEMENTED OR OTHERWISE MODIFIED
FROM TIME TO TIME, THE “INTERCREDITOR AGREEMENT”), AMONG NOVELIS INC., A CORPORATION FORMED UNDER
THE CANADA BUSINESS CORPORATIONS ACT, NOVELIS CORPORATION, A TEXAS CORPORATION, NOVELIS PAE
CORPORATION, A DELAWARE CORPORATION, NOVELIS FINANCES USA LLC, A DELAWARE LIMITED LIABILITY
COMPANY, NOVELIS SOUTH AMERICA HOLDINGS LLC, A DELAWARE LIMITED LIABILITY COMPANY, ALUMINUM
UPSTREAM HOLDINGS LLC, A DELAWARE LIMITED LIABILITY COMPANY, NOVELIS UK LIMITED, A LIMITED
LIABILITY COMPANY INCORPORATED UNDER THE LAWS OF ENGLAND AND WALES WITH REGISTERED NUMBER 00279596,
AND NOVELIS AG, A STOCK CORPORATION (AG) ORGANIZED UNDER THE LAWS OF SWITZERLAND, AV ALUMINUM INC.,
A CORPORATION FORMED UNDER THE CANADA BUSINESS CORPORATIONS ACT (“HOLDINGS”), THE SUBSIDIARIES OF
HOLDINGS FROM TIME TO TIME PARTY THERETO, ABN AMRO BANK N.V., AS ADMINISTRATIVE AGENT FOR THE
REVOLVING CREDIT LENDERS (AS DEFINED IN THE INTERCREDITOR AGREEMENT), LASALLE BUSINESS CREDIT, LLC,
AS COLLATERAL AGENT FOR THE REVOLVING CREDIT CLAIMHOLDERS (AS DEFINED IN THE INTERCREDITOR
AGREEMENT) AND AS FUNDING AGENT, ABN AMRO BANK N.V., ACTING THROUGH ITS CANADIAN BRANCH, AS
CANADIAN ADMINISTRATIVE AGENT FOR THE REVOLVING CREDIT LENDERS AND AS

-25-

 

CANADIAN FUNDING AGENT, UBS AG, STAMFORD BRANCH, AS ADMINISTRATIVE AGENT FOR THE TERM LOAN LENDERS
(AS DEFINED IN THE INTERCREDITOR AGREEMENT), AND AS COLLATERAL AGENT FOR THE TERM LOAN CLAIMHOLDERS
(AS DEFINED IN THE INTERCREDITOR AGREEMENT) AND CERTAIN OTHER PERSONS WHICH MAY BE OR BECOME
PARTIES THERETO OR BECOME BOUND THERETO FROM TIME TO TIME. IN THE EVENT OF ANY CONFLICT OR
INCONSISTENCY BETWEEN THE PROVISIONS OF THE INTERCREDITOR AGREEMENT AND THIS MORTGAGE, THE
PROVISIONS OF THE INTERCREDITOR AGREEMENT SHALL GOVERN AND CONTROL.

     SECTION 12.2. Credit Agreement. In the event of any conflict between the Credit
Agreement and this Mortgage, the provisions of the Credit Agreement shall govern and control.

ARTICLE XIII.

LEASES

     SECTION 13.1. Mortgagor’s Affirmative Covenants with Respect to Leases. With respect
to each Lease, the Mortgagor shall:

  (i) observe and perform in all material respects all the obligations imposed upon
the Landlord under such Lease;

  (ii) promptly send copies to the Mortgagee of all notices of default which the
Mortgagor shall send or receive thereunder; and

  (iii) enforce all of the material terms, covenants and conditions contained in
such Lease upon the part of the Tenant thereunder to be observed or performed.

     SECTION
13.2. Mortgagor’s Negative Covenants with Respect to Leases. With respect
to each Lease, the Mortgagor shall not, without the prior written
consent of the Mortgagee:

  (i) receive or collect, or permit the receipt or collection of, any Rent under
such Lease more than three (3) months in advance of the respective period in respect of
which such Rent is to accrue, except:

	 	(A)	 	in connection with the execution and delivery
of such Lease (or of
any amendment to such Lease), Rent thereunder may be collected
and received in advance in an amount not in excess of three (3)
months Rent;
	 
	 	(B)	 	the amount held by Landlord as a
reasonable security deposit
thereunder; and

-26-

 

	 	(C)	 	any amount received and collected for escalation and other
charges in accordance with the terms of such Lease;

  (ii) assign, transfer or hypothecate (other than to the Mortgagee hereunder or the
Revolving Credit Collateral Agent, as the case may be, and subject to the terms of the
Intercreditor Agreement) any Rent under such Lease whether then due or to accrue in the
future or the interest of the Mortgagor as Landlord under such Lease;

  (iii) enter into any amendment or modification of any Lease if the same would not
comply with the definition of Permitted Liens or could reasonably be expected to result in
a Property Material Adverse Effect;

  (iv) (a) terminate (whether by exercising any contractual right of the Mortgagor
to recapture leased space or otherwise) or (b) permit the termination of such Lease or (c)
accept surrender of all or any portion of the space demised under such Lease prior to the
end of the term thereof or (d) accept assignment of such Lease to the Mortgagor unless the
same would not cause a Property Material Adverse Effect (but with respect to clauses (b)
and (c) hereof, Mortgagor shall not be required to obtain Mortgagee’s prior written consent
if the tenant under any such Lease possesses such rights as of the date hereof);

  (v) waive, excuse, condone or in any manner discharge or release any Tenants of or
from the obligations of such Tenants under their respective Leases or guarantors of Tenants
from obligations under any guarantees of the Leases unless the same would not cause a
Property Material Adverse Effect.

ARTICLE XIV.

LOCAL LAW PROVISIONS

[ ]

[REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]

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     IN WITNESS WHEREOF, the Mortgagor has caused this Mortgage to be duly executed and delivered
under seal the day and year first above written.

	 	 	 	 	 
	 	[                             ],

a[                            ]

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

[local counsel to confirm signature requirements]

[Property Location] Deed of Trust/Mortgage Signature Page

S-l

 

ACKNOWLEDGMENT

	 	 	 	 	 	 	 
	State of                                             

	 	)	 	 	 	 
	 

	 	)     ss.:	 	 	 	 
	County of                                         

	 	)	 	 	 	 

[Local counsel to provide appropriate acknowledgment]

[Property Location] Deed of Trust/Mortgage Notary Page

 

 

Schedule A — Legal Description

Legal Description of premises located at [                                        ]:

[to come from title policy]

 

 

EXHIBIT
K-1

Form of

U.S. TERM LOAN NOTE

			
	 	 	 
	$                                        
	 	New York, New York
	 
	 	[Date]

FOR VALUE
RECEIVED, the undersigned, NOVELIS CORPORATION, a Texas corporation (“Borrower”),
hereby promises to pay to [                                        ] (the “Lender”) or its registered assigns on the Final Maturity Date
(as defined in the Credit Agreement referred to below) in lawful money of the United States and in
immediately available funds, the principal amount of                      DOLLARS ($                    ), or, if less, the aggregate
unpaid principal amount of all U.S. Term Loans (as defined in the Credit Agreement) of the Lender
outstanding under the Credit Agreement referred to below, which sum shall be due and payable in
such amounts and on such dates as are set forth in the Credit Agreement. Borrower further agrees to
pay interest in like money at such office specified in Section 2.14 of the Credit Agreement
on the unpaid principal amount hereof from time to time from the date hereof at the rates specified
in Section 2.06 of such Credit Agreement.

The holder of this Note may endorse and attach a schedule to reflect the date, Type and amount of
each U.S. Term Loan of the Lender owing by the Borrower outstanding under the Credit Agreement, the
date and amount of each payment or prepayment of principal hereof, and the date of each interest
rate conversion or continuation pursuant to Section 2.08 of the Credit Agreement and the
principal amount subject thereto; provided that the failure of the Lender to make any such
recordation (or any error in such recordation) shall not affect the obligations of Borrower
hereunder or under the Credit Agreement.

This Note
is one of the Notes referred to in the Credit Agreement, dated as of July 6, 2007 (as
amended, amended and restated, supplemented or otherwise modified from time to time, the “Credit
Agreement”), among NOVELIS INC., a corporation formed under the Canada Business Corporations Act,
NOVELIS CORPORATION, a Texas corporation, AV ALUMINUM INC., a corporation formed under the Canada
Business Corporations Act, the Subsidiary Guarantors (such term and each other capitalized term
used but not defined herein having the meaning given to it in the Credit Agreement), the Lenders,
UBS AG, STAMFORD BRANCH, as administrative agent for the Lenders, UBS AG, STAMFORD BRANCH, as
collateral agent for the Secured Parties, the other agents party thereto, and ABN AMRO INCORPORATED
and UBS SECURITIES LLC, as joint lead arrangers and joint bookmanagers, is subject to the
provisions thereof and is subject to optional and mandatory prepayment in whole or in part as
provided therein.

This Note is secured and guaranteed as provided in the Credit Agreement and the Security Documents.
Reference is hereby made to the Credit Agreement and the Security Documents for a description of
the properties and assets in which a security interest has been granted, the nature and extent of
the security and guarantees, the terms and conditions upon which the security interest and each
guarantee was granted and the rights of the holder of this Note in respect thereof.

Upon the occurrence of any one or more of the Events of Default specified in the Credit Agreement,
all amounts then remaining unpaid on this Note shall become, or may be declared to be, immediately
due and payable all as provided therein. No failure in exercising any rights hereunder or under the
other Loan Documents on the part of the Lender shall operate as a waiver of such rights.

EXHIBIT
K-1-1

 

 

Time is of the essence in respect of this Note.

All parties now and hereafter liable with respect to this Note, whether maker, principal, surety,
guarantor, endorser or otherwise, hereby waive presentment, demand, protest and all other notices
of any kind.

THIS NOTE MAY NOT BE TRANSFERRED EXCEPT IN COMPLIANCE WITH THE TERMS OF THE CREDIT AGREEMENT.
TRANSFERS OF THIS NOTE MUST BE RECORDED IN THE REGISTER MAINTAINED BY THE ADMINISTRATIVE AGENT
PURSUANT TO THE TERMS OF THE CREDIT AGREEMENT.

THIS NOTE SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OF NEW YORK
WITHOUT REGARD TO CONFLICTS OF LAW PRINCIPLES THAT WOULD REQUIRE THE APPLICATION OF THE LAWS OF
ANOTHER JURISDICTION.

[Signature Page Follows]

EXHIBIT
K-1-2

 

 

	 	 	 	 	 
	 	NOVELIS CORPORATION,
      as Borrower

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

EXHIBIT
K-1-3

 

 

EXHIBIT K-2

Form of

CANADIAN TERM LOAN NOTE

			
	 	 	 
	€                                        
	 	New York, New York
	 
	 	[Date]

FOR VALUE RECEIVED, the undersigned, NOVELIS INC., a corporation formed under the Canada
Business Corporations Act (“Borrower”), hereby promises to pay to [                                        ] (the “Lender”) or its
registered assigns on the Final Maturity Date (as defined in the Credit Agreement referred to
below) in lawful money of the United States and in immediately available funds, the principal
amount of                      DOLLARS ($                    ), or, if less, the aggregate unpaid principal amount of all Canadian Term
Loans (as defined in the Credit Agreement) of the Lender outstanding under the Credit Agreement
referred to below, which sum shall be due and payable in such amounts and on such dates as are set
forth in the Credit Agreement. Borrower further agrees to pay interest in like money at such office
specified in Section 2.14 of the Credit Agreement on the unpaid principal amount hereof
from time to time from the date hereof at the rates specified in Section 2.06 of such
Credit Agreement.

The holder of this Note may endorse and attach a schedule to reflect the date, Type and amount of
each Canadian Term Loan of the Lender owing by the Borrower outstanding under the Credit Agreement,
the date and amount of each payment or prepayment of principal hereof, and the date of each
interest rate conversion or continuation pursuant to Section 2.08 of the Credit Agreement
and the principal amount subject thereto; provided that the failure of the Lender to make any such
recordation (or any error in such recordation) shall not affect the obligations of Borrower
hereunder or under the Credit Agreement.

This Note
is one of the Notes referred to in the Credit Agreement, dated as of July 6, 2007 (as
amended, amended and restated, supplemented or otherwise modified from time to time, the “Credit
Agreement”), among NOVELIS INC., a corporation formed under the Canada Business Corporations Act,
NOVELIS CORPORATION, a Texas corporation, AV ALUMINUM INC., a corporation formed under the Canada
Business Corporations Act, the Subsidiary Guarantors (such term and each other capitalized term
used but not defined herein having the meaning given to it in the Credit Agreement), the Lenders,
UBS AG, STAMFORD BRANCH, as administrative agent for the Lenders, UBS AG, STAMFORD BRANCH, as
collateral agent for the Secured Parties, the other agents party thereto, and ABN AMRO INCORPORATED
and UBS SECURITIES LLC, as joint lead arrangers and joint bookmanagers, is subject to the
provisions thereof and is subject to optional and mandatory prepayment in whole or in part as
provided therein.

This Note is secured and guaranteed as provided in the Credit Agreement and the Security Documents.
Reference is hereby made to the Credit Agreement and the Security Documents for a description of
the properties and assets in which a security interest has been granted, the nature and extent of
the security and guarantees, the terms and conditions upon which the security interest and each
guarantee was granted and the rights of the holder of this Note in respect thereof.

Upon the occurrence of any one or more of the Events of Default specified in the Credit Agreement,
all amounts then remaining unpaid on this Note shall become, or may be declared to be, immediately
due and payable all as provided therein. No failure in exercising any rights hereunder or under the
other Loan Documents on the part of the Lender shall operate as a waiver of such rights.

EXHIBIT K-2-1

 

 

All parties now and hereafter liable with respect to this Note, whether maker, principal, surety,
guarantor, endorser or otherwise, hereby waive presentment, demand, protest and all other notices
of any kind.

Time is of the essence in respect of this Note.

THIS NOTE MAY NOT BE TRANSFERRED EXCEPT IN COMPLIANCE WITH THE TERMS OF THE CREDIT AGREEMENT.
TRANSFERS OF THIS NOTE MUST BE RECORDED IN THE REGISTER MAINTAINED BY THE ADMINISTRATIVE AGENT
PURSUANT TO THE TERMS OF THE CREDIT AGREEMENT.

THIS NOTE SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OF NEW YORK
WITHOUT REGARD TO CONFLICTS OF LAW PRINCIPLES THAT WOULD REQUIRE THE APPLICATION OF THE LAWS OF
ANOTHER JURISDICTION.

[Signature Page Follows]

EXHIBIT K-2-2

 

 

	 	 	 	 	 
	 	NOVELIS INC.,
      as Borrower

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

EXHIBIT K-2-3

 

 

EXHIBIT
L-1

Form of

PERFECTION CERTIFICATE

[See attached]

EXHIBIT
L-1-1

 

 

PERFECTION CERTIFICATE

     Reference is hereby made to that certain Credit Agreement, dated as of July [     ], 2007 (as
amended, restated, amended and restated, supplemented or otherwise modified from time to time, the
“Credit Agreement”), by and among NOVELIS INC., a corporation formed under the Canada Business
Corporations Act, NOVELIS CORPORATION, a Texas corporation, NOVELIS PAE CORPORATION, a Delaware
corporation, EUROFOIL, INC., a New York corporation, NOVELIS UK LIMITED, a limited liability
company incorporated under the laws of England and Wales with registered number [00279596], and
NOVELIS AG, a stock corporation (AG) organized under the laws of Switzerland, AV ALUMINUM INC., a
corporation formed under the Canada Business Corporations Act, the Subsidiary Guarantors (such term
and each other capitalized term used but not defined herein having the meaning given to it in the
Credit Agreement), the Lenders, ABN AMRO INCORPORATED, as issuing bank, as swingline lender, as
administrative agent (together with its successors in such capacity, “Administrative Agent”) for
the Lenders and as collateral agent (together with its successors in such capacity, “Collateral
Agent”) for the Secured Parties and the Issuing Bank, [-], as syndication agent, [-], as
documentation agent, ABN AMRO BANK N.V., as Canadian administrative agent (together with its
successors in such capacity, “Canadian Administrative Agent” and, together with the Administrative
Agent and the Collateral Agent, the “Agents”), and ABN AMRO INCORPORATED and UBS SECURITIES LLC, as
joint lead arrangers and joint bookmanagers.

     The undersigned hereby certify to the Agents as follows:

     1. Names.

     (a) The exact legal name of each Loan Party, as such name appears in its respective
certificate or articles of incorporation, memorandum or articles of association, or any other
organizational document, is set forth in Schedule 1(a). Each Loan Party is (i) the type of
entity disclosed next to its name in Schedule 1(a), (ii) organized under the laws of the
jurisdiction disclosed next to its name in Schedule 1(a) and (iii) a registered
organization in such jurisdiction except to the extent disclosed in
Schedule 1(a). Also set
forth in Schedule 1(a) is the organizational identification number, if any, of each Loan
Party that is a registered organization, the United States Federal Employer Identification Number
(or equivalent under the laws of the relevant jurisdiction of organization of such Loan Party) of
each Loan Party.

     (b) Set forth in Schedule 1(b) hereto is any other organizational names each Loan
Party has had in the past five years, together with the date of the relevant change.

     (c) Set
forth in Schedule 1(c) is a list of all other names (including trade names or
similar appellations) used by each Loan Party, or any other business or organization to which each
Loan Party became the successor by merger, consolidation, acquisition, change in form, nature or
jurisdiction of organization or otherwise, at any time between July [     ], 2002 and the date hereof. Also set forth
in
Schedule 1(c) is the information required by Section 1 of this certificate for any
other business or organization to which each Loan Party became the successor by merger,
consolidation, acquisition,
change in form, nature or jurisdiction of organization or otherwise, at any time between July [     ],
2002
and the date hereof. Except as set forth in Schedule 1(c), no Loan Party has changed its
jurisdiction of organization at any time during the past four months.

     2. Current Locations. (a) The chief executive office of each Loan Party
is located at the address set forth in Schedule 2(a) hereto.

 

 

     (b) Set forth in Schedule 2(b) are all locations where each Loan Party maintains any
books or records relating to any Collateral.

     (c) Set
forth in Schedule 2(c) hereto are all the other places of business of each
Loan Party.

     (d) Set forth in Schedule 2(d) hereto are all other locations where each Loan Party
maintains any of the Collateral consisting of inventory or equipment not identified above.

     (e) Set forth in Schedule 2(e) hereto are the names and addresses of all persons or
entities other than each Loan Party, such as lessees, consignees, warehousemen or purchasers of
chattel paper, which have possession or are intended to have possession of any of the Collateral
consisting of instruments, chattel paper, inventory or equipment.

     3. Prior
Locations. Set forth in Schedule 3 is the
information required by Schedule 2(a), Schedule 2(b), 
Schedule 2(c), Schedule 2(d) and Schedule 2(e) with respect to
each location or place of business previously maintained by each Loan Party at any time during the
past four months.

     4. Extraordinary Transactions. Except for those purchases, acquisitions and other
transactions described on Schedule 4 attached hereto, all of the Collateral has been
originated by each Loan Party in the ordinary course of business or consists of goods which have
been acquired by such Loan Party in the ordinary course of business from a person in the business
of selling goods of that kind.

     5. File Search Reports. Attached hereto as Schedule 5 is a true and accurate
summary of file search reports (or equivalent reports under the laws of each relevant jurisdiction)
from (A) the Uniform Commercial Code filing offices, Personal Property Security Act filings offices
or Registrar of Companies (or equivalent filing offices or registrars under the laws of each
relevant jurisdiction) (collectively, “Filing Offices”) (i) in each jurisdiction identified in
Section 1(a), Section 2 or Section 3 with respect to each legal name and entity set forth in
Section 1 and (ii) in each jurisdiction described in
Schedule 1(c) or Schedule 4
relating to any of the transactions described in Schedule
(1)(c) or Schedule 4
with respect to each legal name of the person or entity (or with respect to each such person or
entity, as applicable) from which each Loan Party purchased or otherwise acquired any of the
Collateral and (B) each filing officer or registrar (or equivalent thereof under the laws of each
relevant jurisdiction) in each real estate recording office or registrar (or equivalent thereof
under the laws of each relevant jurisdiction) identified on Schedule 8 with respect to real
estate on which Collateral consisting of fixtures is or is to be located. A true copy of each
financing statement, mortgage, charge, judgment, tax lien, bankruptcy, pending lawsuit or other
filing identified in such reports has been delivered to the
Collateral Agent.

     6. Collateral Filings. The financing statements, mortgages, charges and other filings
(collectively, “Collateral Filings”), in each case, duly authorized by each Loan Party constituting
the debtor (or the equivalent thereof under the laws of each relevant jurisdiction), including the
indications of the collateral, attached as Schedule 6 relating to the applicable Security
Agreement or Mortgage or other applicable Security Document, are in the appropriate forms for
filing in the Filing Offices in the jurisdictions identified in Schedule 7 hereof.

     7. Schedule of Filings. Attached hereto as Schedule 7 is a schedule of (i) the
appropriate Filing Offices for the Collateral Filings attached hereto as Schedule 6 and
(ii) the appropriate Filing Offices for the filings described in Schedule 12(c) and (iii)
any other actions required to create, preserve, protect and perfect the security interests in the
Collateral granted to the Collateral Agent and/or the Lenders and other Secured Parties under the
Security Documents (other than the Mortgages) (the

-2-

 

“Pledged Collateral”). No other filings or actions are required to create, preserve, protect and
perfect such security interests in the Pledged Collateral.

     8. Real
Property. Attached hereto as Schedule 8(a) is a list of all real
property owned or leased by each Loan Party noting Mortgaged Property as of the Closing Date and
Filing Offices for Mortgages as of the Closing Date. Except as described on Schedule 8(b)
attached hereto, no Loan Party has entered into any leases, subleases, tenancies, franchise
agreements, licenses or other occupancy arrangements as owner, lessor, sublessor, licensor,
franchisor or grantor with respect to any of the real property described on Schedule 8(a)
and no Loan Party has any Leases which require the consent of the landlord, tenant or other party
thereto to the Transactions.

     9. Termination
 Statements. Attached hereto as
Schedule 9(a) are the duly
authorized termination statements (or equivalents thereof under the laws of each applicable
jurisdiction) in the appropriate form for filing in each applicable jurisdiction identified in
Schedule 9(b) hereto with respect to each Lien described therein.

     10. Equity Ownership
and Other Equity Investments. Attached hereto as
Schedule 10 is a true and correct list of each of all of the authorized, and the issued and outstanding,
stock, shares, partnership interests, limited liability company membership interests or other
equity interests of each Loan Party and its Subsidiaries and the record and beneficial owners of
such stock, shares, partnership interests, limited liability company membership interests or other
equity interests, the number of shares or other equity interests owned by each such Loan Party or
Subsidiary and its percentage ownership, the number of shares or other equity interests
outstanding, the numbers of any certificate representing such stock, shares, partnership interests,
limited liability company membership interests or other equity interests, and the number of shares
or other equity interests covered by all outstanding options, warrants, rights of conversion or
purchase and similar rights in respect of any such stock, shares, partnership interests, limited
liability company membership interests or other equity interests. Set forth on Schedule 10
is each equity investment of each Loan Party that represents 50% or less of the equity of the
entity in which such investment was made. Set forth on Schedule 10 is a true and correct
organizational structure chart with respect to the Loan Parties and their respective Subsidiaries
as of the date hereof.

     11. Instruments
and Tangible Chattel Paper; Advances. (a) Attached hereto as
Schedule 11(a) is a true and correct list of all promissory notes, instruments (other than
checks to be deposited in the ordinary course of business), tangible chattel paper, electronic
chattel paper and other evidence of
indebtedness held by each Loan Party as of July____, 2007, including all intercompany notes between or
among any two or more Companies.

     (b) Attached
hereto as Schedule 11(b) is (i) a true and correct list of all
loans and advances made by any Company to any Company as of the date hereof, which advances will be
on and after the date hereof evidenced by one or more Intercompany Notes and, in the case of a loan
or advance by a Loan Party, pledged by such Loan Party as Collateral pursuant to the Security
Documents and (ii) a true and correct list of all unpaid intercompany transfers of goods sold and
delivered by or to any Company as of the date hereof.

     12. Intellectual Property. (a) Attached
hereto as Schedule 12(a) is a schedule setting
forth all Patents and Trademarks (each as defined in the U.S. Security Agreement; provided
that solely for purposes hereof, the references to “Pledgors” in such definitions shall be deemed
to be references to Loan Parties) and all licenses with respect to Patents and Trademarks of (or
licensed by) each Loan Party, including the name of the registered owner and the registration
number, or their equivalents in non-U.S. jurisdictions, if any, of each such Patent, Trademark and
license with respect to Patents and Trademarks

-3-

 

of (or licensed by) each Loan Party. Attached hereto as Schedule 12(b) is a schedule
setting forth all Copyrights (as defined in the U.S. Security Agreement; provided that
solely for purposes hereof, the references to “Pledgors” in such definition shall be deemed to be
references to Loan Parties) and licenses with respect to Copyrights of (or licensed by) each Loan
Party, including the name of the registered owner and the registration number, or their equivalents
in non-U.S. jurisdictions, if any, of each such Copyright or license with respect to Copyrights of
(or licensed by) each Loan Party.

     (b) Attached hereto as Schedule 12(c) in proper form for filing with the United
States Patent and Trademark Office and United States Copyright Office, or their equivalents in
non-U.S. jurisdictions, if any, are the filings necessary to preserve, protect and perfect the
security interests in the Trademarks, Patents and Copyrights and licenses with respect to
Trademarks, Patents and Copyrights set forth on 

Schedule 12(a) and Schedule 12(b),
including duly signed copies of each of the Patent Security Agreement, Trademark Security Agreement
and the Copyright Security Agreement, as applicable.

     13. Commercial Tort Claims. Attached hereto as Schedule 13 is a true and
correct list of all Commercial Tort Claims (as defined in the U.S. Security Agreement) held by each
Loan Party, including a brief description thereof.

     14. Deposit
Accounts, Securities Accounts and Commodity Accounts. Attached hereto as
Schedule 14 is a true and complete list of all Deposit Accounts, Securities Accounts and
Commodity Accounts (each as defined in the U.S. Security Agreement) maintained by each Loan Party,
including the name of each institution where each such account is held, the name and account number
of each such account and the name of each entity that holds each account.

     15. Letter-of-Credit Rights. Attached hereto as
 Schedule 15 is a true and
correct list of all Letters of Credit issued in favor of each Loan Party, as beneficiary
thereunder.

     16. Motor
Vehicles. Attached hereto as Schedule 16 is a true and correct list
of all motor vehicles (covered by certificates of title or ownership) valued at over $50,000 and
owned by each Loan Party, and the owner and approximate value of such motor vehicles.

     17. No Change. The undersigned knows of no anticipated change in any of the
circumstances or with respect to any of the matters contemplated in Sections 1 through 16 of
this Perfection Certificate except as set forth on Schedule 17 hereto.

[The remainder of this page has been intentionally left blank]

-4-

 

     IN WITNESS WHEREOF, we have hereunto signed this Perfection Certificate as of this      
day of July, 2007.

	 	 	 	 	 
	 	NOVELIS CORPORATION

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	NOVELIS PAE CORPORATION

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	EUROFOIL, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	NOVELIS, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	NOVELIS UK LIMITED

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

-5-

 

	 	 	 	 	 
	 	NOVELIS AG

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	AV ALUMINUM INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	NOVELIS CAST HOUSE TECHNOLOGY LTD.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	4260848 CANADA INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	4260856 CANADA INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

-6-

 

	 	 	 	 	 
	 	NOVELIS UK LTD.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	NOVELIS DEUTSCHLAND GMBH

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	NOVELIS SWITZERLAND SA

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	NOVELIS TECHNOLOGY AG

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	NOVELIS ALUMINUM HOLDING COMPANY

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

-7-

 

	 	 	 	 	 
	 	NOVELIS DO BRASIL LTDA

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

-8-

 

Schedule 1(a) 

Legal Names, Etc.

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Federal Employer	 	 	 	 
	 	 	 	 	 	 	 	 	Registered Organization	 	 	 	 	 	 	Identification Number (or	 	 	 	 
	Legal Name	 	 	Type of Entity	 	 	(Yes/No)	 	 	Organizational Numbera	 	 	equivalent)a	 	 	Jurisdiction of Organization	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 

 

			
	a	 	If none, so state.

-9-

 

Schedule 1(b) 

Prior Organizational Names

	 	 	 	 	 	 	 	 	 
	Loan Party	 	Prior Name	 	Date of Change
	 	 
	 	 	 	 	 
	 	 
	 	 	 	 	 
	 	 
	 	 	 	 	 
	 	 
	 	 	 	 	 

-10-

 

Schedule 1(c) 

Changes in Identity; Other Names

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	List of All Other Names
	 	 	 	 	 	 	Date of	 	State of	 	Used During Past Five
	Loan Party	 	Name of Entity	 	Action	 	Action	 	Formation	 	Years
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 

[Add
Information required by Section 1 to the extent required by Section 1(c) of the
Perfection Certificate]

-11-

 

Schedule 2(a) 

Chief Executive Offices

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Loan Party	 	Address	 	County	 	State	 	Country
	 	 
	 	 	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 	 	 

-12-

 

Schedule 2(b)

Location of Books

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Loan Party	 	Address	 	County	 	State	 	Country
	 	 
	 	 	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 	 	 

-13-

 

Schedule 2(c)

 Other Places of Business

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Loan Party	 	Address	 	County	 	State	 	Country
	 	 
	 	 	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 	 	 

-14-

 

Schedule 2(d) 

Additional Locations of Equipment and Inventory

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Loan Party	 	Address	 	County	 	State	 	Country
	 	 
	 	 	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 	 	 

-15-

 

Schedule 2(e) 

Locations of Collateral in Possession of Persons Other Than Any Loan Party

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	Name of Entity in	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	Possession of	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	Collateral/Capacity of	 	 	Address/Location of	 	 	 	 	 	 
	Loan Party	 	 	such Entity	 	 	Collateral	 	 	County	 	 	State	 	 	Country	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 

-16-

 

Schedule 3 

Prior Locations Maintained by Loan Parties

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Loan Party	 	Address	 	County	 	State	 	Country
	 	 
	 	 	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 	 	 

-17-

 

Schedule 4

 Transactions Other Than in the Ordinary Course of Business

	 	 	 	 	 	 	 	 	 
	Loan Party	 	Description of Transaction Including Parties Thereto	 	Date of Transaction
	 	 
	 	 	 	 	 
	 	 
	 	 	 	 	 
	 	 
	 	 	 	 	 
	 	 

-18-

 

Schedule 5

 File Search Reports

	 	 	 	 	 	 	 	 	 	 	 	 	 
	Loan Party	 	Search Report dated	 	Prepared by	 	Jurisdiction
	 	 
	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 
	 	 

See attached.

-19-

 

Schedule 6 

Copy of Collateral Filings To Be Filed

See attached.

-20-

 

EXHIBIT
M-1

Form of

U.S. SECURITY AGREEMENT

[See Tab # B.1-2.]

EXHIBIT M-1-1

 

 

 

SECURITY AGREEMENT

made by

NOVELIS INC.,

as Canadian Borrower,

NOVELIS CORPORATION,

as U.S. Borrower

and

THE GUARANTORS FROM TIME TO TIME PARTY HERETO

in favor of

UBS AG, STAMFORD BRANCH,

as Collateral Agent

 

Dated as of July 6, 2007

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	PREAMBLE
	 	 	1	 
	 
	 	 	 	 
	RECITALS
	 	 	1	 
	 
	 	 	 	 
	AGREEMENT
	 	 	2	 
	 
	 	 	 	 
	ARTICLE I

	 
	 	 	 	 
	DEFINITIONS AND INTERPRETATION

	 
	 	 	 	 
	SECTION 1.1. DEFINITIONS
	 	 	2	 
	SECTION 1.2. INTERPRETATION
	 	 	9	 
	SECTION 1.3. RESOLUTION OF DRAFTING AMBIGUITIES
	 	 	9	 
	SECTION 1.4. PERFECTION CERTIFICATE
	 	 	9	 
	 
	 	 	 	 
	ARTICLE II

	 
	 	 	 	 
	GRANT OF SECURITY AND SECURED OBLIGATIONS

	 
	 	 	 	 
	SECTION 2.1. GRANT OF SECURITY INTEREST
	 	 	9	 
	SECTION 2.2. FILINGS
	 	 	10	 
	 
	 	 	 	 
	ARTICLE III

	 
	 	 	 	 
	PERFECTION; SUPPLEMENTS; FURTHER ASSURANCES;

	USE OF PLEDGED COLLATERAL

	 
	 	 	 	 
	SECTION 3.1. DELIVERY OF CERTIFICATED SECURITIES COLLATERAL
	 	 	11	 
	SECTION 3.2. PERFECTION OF UNCERTIFICATED SECURITIES COLLATERAL
	 	 	12	 
	SECTION 3.3. FINANCING STATEMENTS AND OTHER FILINGS; MAINTENANCE OF PERFECTED SECURITY INTEREST
	 	 	12	 
	SECTION 3.4. OTHER ACTIONS
	 	 	13	 
	SECTION 3.5. JOINDER OF ADDITIONAL GUARANTORS
	 	 	16	 
	SECTION 3.6. SUPPLEMENTS; FURTHER ASSURANCES
	 	 	16	 
	 
	 	 	 	 
	ARTICLE IV

	 
	 	 	 	 
	REPRESENTATIONS, WARRANTIES AND COVENANTS

	 
	 	 	 	 
	SECTION 4.1. TITLE
	 	 	17	 
	SECTION 4.2. VALIDITY OF SECURITY INTEREST
	 	 	17	 
	SECTION 4.3. DEFENSE OF CLAIMS; TRANSFERABILITY OF PLEDGED COLLATERAL
	 	 	17	 

-i-

 

 

	 	 	 	 	 
	 	 	Page	 
	SECTION 4.4. OTHER FINANCING STATEMENTS
	 	 	17	 
	SECTION 4.5. INVENTORY AND EQUIPMENT
	 	 	18	 
	SECTION 4.6. DUE AUTHORIZATION AND ISSUANCE
	 	 	18	 
	SECTION 4.7. CONSENTS, ETC.
	 	 	19	 
	SECTION 4.8. PLEDGED COLLATERAL
	 	 	19	 
	SECTION 4.9. INSURANCE
	 	 	19	 
	 
	 	 	 	 
	ARTICLE V

	 
	 	 	 	 
	CERTAIN PROVISIONS CONCERNING SECURITIES COLLATERAL

	 
	 	 	 	 
	SECTION 5.1. PLEDGE OF ADDITIONAL SECURITIES COLLATERAL
	 	 	19	 
	SECTION 5.2. VOTING RIGHTS; DISTRIBUTIONS; ETC.
	 	 	19	 
	SECTION 5.3. DEFAULTS, ETC.
	 	 	20	 
	SECTION 5.4. ORGANIZATIONAL DOCUMENTS
	 	 	21	 
	SECTION 5.5. CERTAIN AGREEMENTS OF PLEDGORS AS ISSUERS AND HOLDERS OF EQUITY INTERESTS
	 	 	21	 
	 
	 	 	 	 
	ARTICLE VI

	 
	 	 	 	 
	CERTAIN PROVISIONS CONCERNING INTELLECTUAL

	PROPERTY COLLATERAL

	 
	 	 	 	 
	SECTION 6.1. GRANT OF INTELLECTUAL PROPERTY LICENSE
	 	 	21	 
	SECTION 6.2. PROTECTION AND MAINTENANCE OF INTELLECTUAL PROPERTY COLLATERAL
	 	 	22	 
	SECTION 6.3.
AFTER-ACQUIRED PROPERTY
	 	 	22	 
	SECTION 6.4. LITIGATION
	 	 	23	 
	 
	 	 	 	 
	ARTICLE VII

	 
	 	 	 	 
	CERTAIN PROVISIONS CONCERNING RECEIVABLES

	 
	 	 	 	 
	SECTION 7.1. MAINTENANCE OF RECORDS
	 	 	23	 
	SECTION 7.2.
MODIFICATION OF TERMS, ETC.
	 	 	24	 
	SECTION 7.3. COLLECTION
	 	 	24	 
	 
	 	 	 	 
	ARTICLE VIII

	 
	 	 	 	 
	TRANSFERS

	 
	 	 	 	 
	SECTION 8.1. TRANSFERS OF PLEDGED COLLATERAL
	 	 	25	 

-ii-

 

 

	 	 	 	 	 
	 	 	Page	 
	ARTICLE IX

	 
	 	 	 	 
	REMEDIES

	 
	 	 	 	 
	SECTION 9.1. REMEDIES
	 	 	25	 
	SECTION 9.2. NOTICE OF SALE
	 	 	27	 
	SECTION 9.3. WAIVER OF NOTICE AND CLAIMS
	 	 	27	 
	SECTION 9.4. CERTAIN SALES OF PLEDGED COLLATERAL
	 	 	27	 
	SECTION 9.5. NO WAIVER; CUMULATIVE REMEDIES
	 	 	28	 
	SECTION 9.6. CERTAIN ADDITIONAL ACTIONS REGARDING INTELLECTUAL PROPERTY
	 	 	29	 
	 
	 	 	 	 
	ARTICLE X

	 
	 	 	 	 
	APPLICATION OF PROCEEDS

	 
	 	 	 	 
	SECTION 10.1. APPLICATION OF PROCEEDS
	 	 	29	 
	 
	 	 	 	 
	ARTICLE XI

	 
	 	 	 	 
	MISCELLANEOUS

	 
	 	 	 	 
	SECTION 11.1. CONCERNING COLLATERAL AGENT
	 	 	29	 
	SECTION 11.2. COLLATERAL AGENT MAY PERFORM; COLLATERAL AGENT APPOINTED ATTORNEY-IN-FACT
	 	 	30	 
	SECTION 11.3. CONTINUING SECURITY INTEREST; ASSIGNMENT
	 	 	31	 
	SECTION 11.4. TERMINATION; RELEASE
	 	 	31	 
	SECTION 11.5. MODIFICATION IN WRITING
	 	 	32	 
	SECTION 11.6. NOTICES
	 	 	32	 
	SECTION 11.7. GOVERNING LAW, CONSENT TO JURISDICTION AND SERVICE OF PROCESS; WAIVER OF JURY TRIAL
	 	 	32	 
	SECTION 11.8. SEVERABILITY OF PROVISIONS
	 	 	32	 
	SECTION 11.9. EXECUTION IN COUNTERPARTS
	 	 	32	 
	SECTION 11.10. BUSINESS DAYS
	 	 	32	 
	SECTION 11.11. NO CREDIT FOR PAYMENT OF TAXES OR IMPOSITION
	 	 	32	 
	SECTION 11.12. NO CLAIMS AGAINST COLLATERAL AGENT
	 	 	32	 
	SECTION 11.13. NO RELEASE
	 	 	33	 
	SECTION 11.14. OBLIGATIONS ABSOLUTE
	 	 	33	 
	SECTION 11.15. INTERCREDITOR AGREEMENT GOVERNS
	 	 	34	 
	SECTION 11.16. DELIVERY OF COLLATERAL
	 	 	34	 
	SECTION 11.17. MORTGAGES
	 	 	34	 
	SECTION 11.18. CONFLICTS
	 	 	34	 
	 
	 	 	 	 
	SIGNATURES
	 	 	S-l	 

-iii-

 

 

	 	 	 
	EXHIBIT 1

	 	Form of Issuer’s Acknowledgment
	EXHIBIT 2

	 	Form of Securities Pledge Amendment
	EXHIBIT 3

	 	Form of Joinder Agreement
	EXHIBIT 4

	 	Form of Copyright Security Agreement
	EXHIBIT 5

	 	Form of Patent Security Agreement
	EXHIBIT 6

	 	Form of Trademark Security Agreement
	EXHIBIT 7

	 	Form of Bailee Letter

-iv-

 

 

SECURITY AGREEMENT

          This SECURITY AGREEMENT, dated as of July 6, 2007 (as amended, amended and restated,
supplemented or otherwise modified from time to time in accordance with the provisions hereof, this
“Agreement”), made by NOVELIS INC., a corporation formed under the Canada Business Corporations Act
(the “Canadian Borrower”), NOVELIS CORPORATION, a Texas corporation (the “U.S. Borrower”) and the
Guarantors from to time to time party hereto (the “Guarantors”), as pledgors, assignors and debtors
(the Canadian Borrower and the U.S. Borrower, together with the Guarantors, in such capacities and
together with any successors in such capacities, the “Pledgors”, and each, a “Pledgor”), in favor
of UBS AG, STAMFORD BRANCH, in its capacity as collateral agent pursuant to the Credit Agreement
(as hereinafter defined) (in such capacity and together with any successors in such capacity, the
“Collateral Agent”).

 R E C I T A L S :

          A. The Canadian Borrower, the U.S. Borrower, AV Aluminum Inc., a corporation
formed under the Canada Business Corporations Act, and the other Loan Parties from time to
time party
thereto, the Lenders from time to time party thereto, UBS AG, Stamford Branch, as
Administrative Agent
and as Collateral Agent, and the other parties thereto have, in connection with the execution
and delivery
of this Agreement, entered into that certain Credit Agreement, dated as of July 6, 2007 (as
amended,
restated, amended and restated, supplemented or otherwise modified from time to time, the
“Credit Agreement”; which term shall also include and refer to any increase in the amount of
indebtedness under
the Credit Agreement and any refinancing or replacement of the Credit Agreement (whether under
a bank
facility, securities offering or otherwise) or one or more successor or replacement facilities
whether or not
with a different group of agents or lenders (whether under a bank facility, securities
offering or otherwise)
and whether or not with different obligors upon the Administrative Agent’s acknowledgment of
the
termination of the predecessor Credit Agreement).

          B. Each Guarantor has, pursuant to the Credit Agreement, unconditionally guaranteed the Secured Obligations.

          C. Each Guarantor will receive substantial benefits from the execution, delivery and
performance of the obligations under the Credit Agreement and the other Loan Documents and
each is,
therefore, willing to enter into this Agreement.

          D. This Agreement is given by each Pledgor in favor of the Collateral Agent for the
benefit of the Secured Parties to secure the payment and performance of all of the Secured
Obligations.

          F. It is a condition to (i) the obligations of the Lenders to make the Loans under the Credit
Agreement and (ii) the performance of the obligations of the Secured Parties under Hedging
Agreements that constitute Secured Obligations that each Pledgor execute and deliver the
applicable Loan Documents, including this Agreement.

 

-2-

 A G R E E M E N T :

          NOW THEREFORE, in consideration of the foregoing premises and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, each Pledgor and the
Collateral Agent hereby agree as follows:

ARTICLE I

DEFINITIONS AND INTERPRETATION

          SECTION 1.1. Definitions.

          (a) Unless otherwise defined herein or in the Credit Agreement, capitalized terms
used herein that are defined in the UCC shall have the meanings assigned to them in the UCC;
provided that in any event, the following terms shall have the meanings assigned to them in the UCC:

          “Accounts”; “Bank”; “Chattel Paper”; “Commercial Tort Claim”; “Commodity Account”;
“Commodity Contract”; “Commodity Intermediary”; “Documents”; “Electronic Chattel Paper”;
“Entitlement Order”; “Equipment”;
“Financial Asset”; “Fixtures”; “Goods”, “Inventory”;
“Letter-of-Credit Rights”; “Letters of Credit”; “Money”; “Payment Intangibles”;
“Proceeds”; “Records”; “Securities Account”; “Securities Entitlement”; “Securities Intermediary”;
“Supporting Obligations”; and “Tangible Chattel Paper.”

          (b) Capitalized terms used but not otherwise defined herein that are defined in the
Credit Agreement shall have the meanings given to them in the Credit Agreement. Sections
1.03, 1.04
and 1.05 of the Credit Agreement shall apply herein mutatis mutandis.

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

          “Account Debtor” shall mean each person who is obligated on a Receivable or Supporting
Obligation related thereto.

          “Agreement” shall have the meaning assigned to such term in the Preamble hereof.

          “Bankruptcy Code” shall mean Title 11 of the United States Code entitled
“Bankruptcy”, as now and hereinafter in effect, or any successor statute.

          “Bailee Letter” shall be an agreement in form substantially similar to Exhibit 7
hereto or in such other form and substance reasonably satisfactory to the Collateral Agent.

          “Canadian Borrower” shall have the meaning assigned to such term in the Preamble
hereof.

          “Collateral Agent” shall have the meaning assigned to such term in the Preamble
hereof.

          “Collateral Report” means any certificate, report or other document delivered by any
Pledgor to any Agent with respect to the Pledged Collateral pursuant to any Loan Document.

 

-3-

          “Collateral Support” shall mean all property (real or personal) assigned, hypothecated or
otherwise securing any Pledged Collateral and shall include any security agreement or other
agreement granting a lien or security interest in such real or personal property.

          “Commodity Account Control Agreement” shall mean a control agreement in a form that
is reasonably satisfactory to the Collateral Agent establishing the Collateral Agent’s Control
with respect to any Commodity Account.

          “Contracts” shall mean, collectively, with respect to each Pledgor, the Acquisition
Documents, all sale, service, performance, equipment or property lease contracts, licenses,
agreements and grants and all other contracts, licenses, agreements or grants (in each case,
whether written or oral, or third party or intercompany), between such Pledgor and any third
party, and all assignments, amendments, restatements, supplements, extensions, renewals,
replacements or modifications thereof.

          “Control” shall mean (i) in the case of each Deposit Account, “control”, as such term is
defined in Section 9-104 of the UCC, (ii) in the case of any Security Entitlement, “control”, as
such term is defined in Section 8-106 of the UCC, and (iii) in the case of any Commodity Contract,
“control”, as such term is defined in Section 9-106 of the UCC.

          “Control Agreements” shall mean, collectively, the Deposit Account Control Agreement, the
Securities Account Control Agreement and the Commodity Account Control Agreement.

          “Copyrights” shall mean, collectively, all copyrights (whether statutory or common law,
whether established, registered or recorded in the United States or any other country or any
political subdivision thereof, whether registered or unregistered and whether published or
unpublished) and all mask works (as such term is defined in 17 U.S.C. Section 901, et seq.),
together with any and all (i) copyright registrations and applications, (ii) rights and privileges
arising under applicable law with respect to such copyrights, (iii) renewals and extensions
thereof and amendments thereto, (iv) income, fees, royalties, damages, claims and payments now or
hereafter due and/or payable with respect thereto, including damages and payments for past,
present or future. infringements or other violations thereof, (v) rights corresponding thereto
throughout the world and (vi) rights to sue for past, present or future infringements thereof.

          “Copyright Security Agreement” shall mean an agreement substantially in the form of
Exhibit 4 hereto.

          “Credit Agreement” shall have the meaning assigned to such term in Recital A hereof.

          “Deposit Account Control Agreement” shall mean an agreement in form and substance
reasonably satisfactory to the Collateral Agent establishing the Collateral Agent’s Control with
respect to any Deposit Account.

          “Deposit Accounts” shall mean, collectively, with respect to each Pledgor, (i) all
“deposit accounts” as such term is defined in the UCC and in any event shall include all accounts
and sub-accounts relating to any of the foregoing accounts and (ii) all cash, funds, checks,
notes and instruments from time to time on deposit in any of the accounts or sub-accounts
described in clause (i) of this definition.

          “Discharge of Revolving Credit Obligations” shall have the meaning assigned to such
term in the Intercreditor Agreement.

 

-4-

          “Distributions” shall mean, collectively, with respect to each Pledgor, all dividends, cash,
options, warrants, rights, instruments, distributions, returns of capital or principal, income,
interest, profits and other property, interests (debt or equity) or proceeds, including as a
result of a split, revision, reclassification or other like change of the Pledged Securities, from
time to time received, receivable or otherwise distributed to such Pledgor in respect of or in
exchange for any or all of the Pledged Securities or Intercompany Notes.

          “Excluded Commodities Accounts” shall mean Commodities Accounts with Investment
Property or other property held in or credited to such Commodities Accounts with an aggregate value
of less than $1,000,000 at any time with respect to any particular Commodities Account and less
than $2,500,000 at any time in the aggregate for all such Commodities Accounts.

          “Excluded Deposit Accounts” shall mean (i) Deposit Accounts used solely to fund
payroll, payroll taxes and similar employment taxes or employee benefits in the ordinary course of
business and (ii) Deposit Accounts with an amount on deposit of
less than $1,000,000 at any time
with respect to any particular Deposit Account and less than $2,500,000 at any time in the
aggregate for all such Deposit Accounts; provided that notwithstanding the foregoing, no
525 Collateral Account or Net Cash Proceeds Account shall be an Excluded Deposit Account.

          “Excluded Securities Accounts” shall mean (i) Securities Accounts with Investment
Property or other property held in or credited to such Securities Accounts with an aggregate value
of less than $10,000,000 at any time in the aggregate for all such Securities Accounts and (ii)
Securities Accounts with property held in or credited to such Securities Accounts consisting
solely of the Equity Interests of Aluminum Company of Malaysia Berhard (Malaysia).

          “Excluded Property” shall mean

     (a) any permit or license issued by a Governmental Authority to any Pledgor or any
agreement to which any Pledgor is a party, in each case, only to the extent and for so
long as the
terms of such permit, license or agreement or any Requirement of Law applicable
thereto, validly
prohibit the creation by such Pledgor of a security interest in such permit, license or
agreement in
favor of the Collateral Agent (after giving effect to Sections 9-406(d), 9-407(a),
9-408(a) or 9-409
of the UCC (or any successor provision or provisions) or any other applicable law
(including the
Bankruptcy Code) or principles of equity),

     (b) any “Venture Interests” as defined in the Joint Venture Agreement, dated January
18, 1985, between Arco Logan Inc. and Alcan Aluminum Corporation, as such Joint Venture
Agreement may have been amended prior to January 7, 2005, and any Equity Interest in
any other
joint ventures to the extent the terms of the applicable joint venture agreement
validly prohibit the
creation by the applicable Pledgor of a security interest in such other Equity
Interests in favor of
the Collateral Agent, but only to the extent and for so long as (i) the terms of the
applicable
agreement prohibit the creation by the applicable Pledgor of a security interest in
such “Venture
Interests” or other Equity Interests in favor of the Collateral Agent (after giving
effect to
Sections 9-406(d), 9-407(a), 9-408(a) or 9-409 of the UCC (or any successor provision or
provisions) or any other applicable law (including the Bankruptcy Code) or principles
of equity)
and (ii) such prohibition is permitted by Section 6.19 of the Credit Agreement,

     (c) any property owned by any Pledgor on the date hereof or hereafter acquired that
is subject to a Lien securing a Purchase Money Obligation or Capital Lease Obligation
permitted

 

 -5-

to be incurred pursuant to the provisions of the Credit Agreement if the contract or other
agreement in which such Lien is granted (or the documentation providing for such Purchase
Money Obligation or Capital Lease Obligation) validly prohibits the creation of any other
Lien on such property,

     (d) any United States trademark or service mark application filed on the basis of a
Pledgor’s intent-to-use such mark, in each case, unless and until evidence of the use of
such trademark in interstate commerce is submitted to and accepted by the United States
Patent and Trademark Office, and

     (e) any Equity Interests of Novelis de Mexico, S.A. de C.V. so long as (i) such
Subsidiary is an Excluded Collateral Subsidiary and (ii) the pledge of or grant of a
security interest in the Equity Interests of such Subsidiary pursuant hereto would
constitute an investment of earnings in United States property under Section 956 (or a
successor provision) of the Code, which investment would or could reasonably be expected to
trigger an increase in the net income of a United States shareholder of such Subsidiary
pursuant to Section 951 (or a successor provision) of the Code, as reasonably determined by
the Collateral Agent; provided, however, that Excluded Property shall not include
(x) Voting Stock of such Subsidiary representing not more than 65% of the total voting power
of all outstanding Voting Stock of such Subsidiary and (y) 100% of the Equity Interests not
constituting Voting Stock of such Subsidiary, except that any such Equity Interests
constituting “stock entitled to vote” within the meaning of Treasury Regulation Section
1.956-2(c)(2) shall be treated as Voting Stock for purposes of this clause (e);

provided, however, that Excluded Property shall not include any Proceeds,
substitutions or replacements of any Excluded Property referred to in clauses (a) through (e)
(unless such Proceeds, substitutions or replacements would constitute Excluded Property referred
to in clauses (a), (b), (c), (d) or (e)).

          “General Intangibles” shall mean, collectively, with respect to each Pledgor, all
“general intangibles”, as such term is defined in the UCC, of such Pledgor and, in any event,
shall include (i) all of such Pledgor’s rights, title and interest in, to and under all Contracts
and insurance policies (including all rights and remedies relating to monetary damages, including
indemnification rights and remedies, and claims for damages or other relief pursuant to or in
respect of any Contract), (ii) all know-how and warranties relating to any of the Pledged
Collateral or the Mortgaged Property, (iii) any and all other rights, claims, choses-in-action and
causes of action of such Pledgor against any other person and the benefits of any and all
collateral or other security given by any other person in connection therewith, (iv) all
guarantees, endorsements and indemnifications on, or of, any of the Pledged Collateral or any of
the Mortgaged Property, (v) all intellectual property, (vi) all lists, books, records,
correspondence, ledgers, printouts, files (whether in printed form or stored electronically),
tapes and other papers or materials containing information relating to any of the Pledged
Collateral or any of the Mortgaged Property, including all customer or tenant lists,
identification of suppliers, data, plans, blueprints, specifications, designs, drawings,
appraisals, recorded knowledge, surveys, studies, engineering reports, test reports, manuals,
standards, processing standards, performance standards, catalogs, research data, computer and
automatic machinery software and programs and the like, field repair data, accounting information
pertaining to such Pledgor’s operations or any of the Pledged Collateral or any of the Mortgaged
Property and all media in which or on which any of the information or knowledge or data or records
may be recorded or stored and all computer programs used for the compilation or printout of such
information, knowledge, records or data, (vii) all licenses, consents, permits, variances,
certifications, authorizations and approvals, however characterized, now or hereafter acquired or
held by such Pledgor, including building permits, certificates of occupancy, environmental
certificates, industrial permits or

 

-6-

licenses and certificates of operation and (viii) all rights to reserves, deferred payments,
deposits, refunds, indemnification of claims and claims for tax or other refunds against any
Governmental Authority.

          “Guarantors” shall have the meaning assigned to such term in the Preamble hereof.

          “Immaterial Intellectual Property Collateral” shall mean Intellectual
Property Collateral that is not Material Intellectual Property Collateral.

          “Instruments” shall mean, collectively, with respect to each Pledgor, all “instruments”, as
such term is defined in Article 9, rather than Article 3, of the UCC, and shall include all
promissory notes, drafts, bills of exchange or acceptances.

          “Intellectual Property” shall mean, collectively, Patents, Trademarks, Copyrights,
Intellectual Property Licenses and Trade Secrets and Other Proprietary Rights.

          “Intellectual Property Collateral” shall mean, collectively, the Patents, Trademarks,
Copyrights, Intellectual Property Licenses and Trade Secrets and Other Proprietary Rights of the
Pledgors, in each case, other than any Excluded Property.

          “Intellectual Property Licenses” shall mean, collectively, with respect to each
Pledgor, all license agreements, distribution agreements and covenants not to sue (regardless of
whether such agreements and covenants are contained within an agreement that also covers other
matters, such as development or consulting) with respect to any Patent, Trademark, Copyright or
Trade Secrets and Other Proprietary Rights, whether such Pledgor is a licensor or licensee,
distributor or distributee under any such agreement, together with any and all (i) amendments,
renewals, extensions, supplements and continuations thereof, (ii) income, fees, royalties,
damages, claims and payments now and hereafter due and/or payable thereunder and with respect
thereto including damages and payments for past, present or future infringements or violations
thereof, (iii) rights to sue for past, present and future infringements, breaches or violations
thereof and (iv) other rights to use, exploit or practice any or all Patents Trademarks,
Copyrights or Trade Secrets and Other Proprietary Rights.

          “Intercompany Notes” shall mean, with respect to each Pledgor, all intercompany notes
described in Schedule 11 to the Perfection Certificate and intercompany notes hereafter acquired
by such Pledgor and all certificates, instruments or agreements evidencing such intercompany
notes, and all assignments, amendments, restatements, supplements, extensions, renewals,
replacements or modifications thereof to the extent permitted pursuant to the terms hereof.

          “Intercreditor Agreement” shall mean that certain Intercreditor Agreement, dated as of the
date hereof, by and among the Pledgors and the other Companies party thereto, the Administrative
Agent, the Collateral Agent, and the Revolving Credit Agents, and certain other persons which may
be or become parties thereto or become bound thereto from time to time, as the same may be
amended, restated, amended and restated, supplemented or otherwise modified from time to time.

          “Investment Property” shall mean a security, whether certificated or uncertificated,
Security Entitlement, Securities Account, Commodity Contract or Commodity Account, excluding,
however, the Securities Collateral.

          “Joinder Agreement” shall mean an agreement substantially in the form of Exhibit 3 hereto.

 

-7-

          “Material Intellectual Property Collateral” shall mean any Intellectual
Property Collateral that is material (i) to the use and operation of any material Pledged
Collateral or Mortgaged Property or (ii) to the business, results of operations, prospects or
condition, financial or otherwise, of any Pledgor.

          “Mortgaged Property” shall have the meaning assigned to such term in the Mortgages.

          “Patents” shall mean, collectively, all patents, patent applications, certificates of
inventions, industrial designs and rights corresponding thereto throughout the world (whether
established or registered or recorded in the United States or any other country or any political
subdivision thereof), together with any and all (i) rights and privileges arising under applicable
law with respect to any of the foregoing, (ii) inventions and improvements described and claimed
therein, (iii) reissues, divisions, continuations, renewals, extensions and continuations-in-part
thereof and amendments thereto, (iv) income, fees, royalties, damages, claims and payments now or
hereafter due and/or payable thereunder and with respect thereto including damages and payments
for past, present or future infringements or other violations thereof, (v) rights corresponding
thereto throughout the world and (vi) rights to sue for past, present or future infringements or
other violations thereof.

          “Patent Security Agreement” shall mean an agreement substantially in the form of
Exhibit 5 hereto.

          “Perfection Certificate” shall mean, individually and collectively, as the context
may require, each perfection certificate dated July 6, 2007, executed and delivered by each
Pledgor in favor of the Agents, and each other Perfection Certificate (which shall be in form and
substance reasonably acceptable to the Collateral Agent) executed and delivered by the applicable
Pledgor in favor of the Administrative Agent and Collateral Agent for the benefit of the Secured
Parties contemporaneously with the execution and delivery of each Joinder Agreement executed in
accordance with Section 3.5 hereof, in each case, as the same may be amended, amended and
restated, supplemented or otherwise modified from time to time in accordance with the Credit
Agreement.

          “Permitted Encumbrances” shall mean Permitted Liens of the type described in Section
6.02(a), (b), (c), (d), (f), (g), (h), (i), (j), (k) (to the extent provided in the Intercreditor
Agreement), (n), (o), (q), (r), (s) and (t) of the Credit Agreement which have priority over the
Liens granted pursuant to this Agreement (and in each case, subject to the proviso to Section
6.02 of the Credit Agreement).

          “person” shall mean any natural person, corporation, limited liability company, trust, joint
venture, association, company, partnership, Governmental Authority or other entity.

          “Pledge Amendment” shall have the meaning assigned to such term in Section 5.1
hereof.

          “Pledged Collateral” shall have the meaning assigned to such term in Section
2.1 hereof.

          “Pledged Securities” shall mean, collectively, with respect to each Pledgor, (i) all
issued and outstanding Equity Interests of each issuer set forth on Schedule 10 to the
Perfection Certificate as being owned by such Pledgor and all options, warrants, rights,
agreements and additional Equity Interests of whatever class of any such issuer acquired by such
Pledgor (including by issuance), together with all rights, privileges, authority and powers of
such Pledgor relating to such Equity Interests in each such issuer or under any Organizational
Document of each such issuer, and the certificates, instruments and agreements representing such
Equity Interests and any and all interest of such Pledgor in the entries on the books of any
financial intermediary pertaining to such Equity Interests, (ii) all Equity Interests of any

 

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issuer, which Equity Interests are hereafter acquired by such Pledgor (including by issuance) and
all options, warrants, rights, agreements and additional Equity Interests of whatever class of any
such issuer acquired by such Pledgor (including by issuance), together with all rights,
privileges, authority and powers of such Pledgor relating to such Equity Interests or under any
Organizational Document of any such issuer, and the certificates, instruments and agreements
representing such Equity Interests and any and all interest of such Pledgor in the entries on the
books of any financial intermediary pertaining to such Equity Interests, from time to time
acquired by such Pledgor in any manner, and (iii) all Equity Interests issued in respect of the
Equity Interests referred to in clause (i) or (ii) upon any consolidation or merger of any issuer
of such Equity Interests.

          “Pledgor” shall have the meaning assigned to such term in the Preamble hereof.

          “Receivables” shall mean all (i) Accounts, (ii) Chattel Paper, (iii) Payment
Intangibles, (iv) General Intangibles, (v) Instruments and (vi) all other rights to payment,
whether or not earned by performance, for goods or other property sold, leased, licensed, assigned
or otherwise disposed of, or services rendered or to be rendered, regardless of how classified
under the UCC together with all of Pledgors’ rights, if any, in any goods or other property giving
rise to such right to payment and all Collateral Support and Supporting Obligations related
thereto and all Records relating thereto.

          “Revolving Credit Agents” shall have the meaning assigned to such term in the
Intercreditor Agreement.

          “Revolving Credit Security Documents” shall have the meaning assigned to such term in
the Intercreditor Agreement

          “Securities Account Control Agreement” shall mean an agreement in form and substance
reasonably satisfactory to the Collateral Agent establishing the Collateral Agent’s Control with
respect to any Securities Account.

          “Securities Collateral” shall mean, collectively, the Pledged Securities, the
Intercompany Notes and the Distributions.

          “Trade Secrets and Other Proprietary Rights” shall mean, collectively, all trade
secrets, proprietary information and data and databases, know-how and processes, designs,
inventions, technology and software and any other intangible rights to the extent not covered by
the definitions of Patents, Trademarks and Copyrights; whether registered or unregistered, whether
statutory or common law, and whether established or registered in the United States or any other
country or any political subdivision thereof, including, without limitation, any of the foregoing
listed on Schedule 12(a) to the Perfection Certificate, together with any and all (i)
registrations and applications for the foregoing, (ii) rights and privileges arising under
applicable law with respect to the use of any of the foregoing, (iii) reissues, continuations,
extensions, renewals and divisions thereof and amendments thereto, (v) income, fees, royalties,
damages and payments now and hereafter due and/or payable thereunder and with respect thereto,
including, without limitation, damages, claims and payments for past, present or future
infringements or other violations thereof, (vi) rights corresponding thereto throughout the world
and (vii) rights to sue for past, present and future infringements and other violations thereof.

          “Trademarks” shall mean, collectively, all trademarks (including service marks and
certification marks), slogans, logos, certification marks, trade dress, Internet Domain Names,
corporate names and trade names, whether registered or unregistered (whether statutory or common
law and

 

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whether established or registered in the United States or any other country or any political
subdivision thereof), together with any and all (i) registrations and applications for any of the
foregoing, (ii) goodwill connected with the use thereof and symbolized thereby, (iii) rights and
privileges arising under applicable law with respect to the use of any of the foregoing, (iv)
reissues, continuations, extensions and renewals thereof and amendments thereto, (v) income, fees,
royalties, damages and payments now and hereafter due and/or payable thereunder and with respect
thereto, including damages, claims and payments for past, present or future infringements,
dilutions or other violations thereof, (vi) rights corresponding thereto throughout the world and
(vii) rights to sue for past, present and future infringements, dilutions or other violations
thereof.

          “Trademark Security Agreement” shall mean an agreement substantially in the form of
Exhibit 6 hereto.

          “UCC” shall mean the Uniform Commercial Code as in effect from time to time in the State of
New York; provided, however, that, at any time, if by reason of mandatory provisions of
law, any or all of the perfection or priority of the Collateral Agent’s security interest in any
item or portion of the Pledged Collateral is governed by the Uniform Commercial Code as in effect
in a jurisdiction other than the State of New York, the term “UCC” shall mean the Uniform
Commercial Code as in effect, at such time, in such other jurisdiction for purposes of the
provisions hereof relating to such perfection or priority and for purposes of definitions relating
to such provisions.

          “U.S. Borrower” shall have the meaning assigned to such term in the Preamble hereof.

          SECTION 1.2. Interpretation. The rules of interpretation specified in the Credit
Agreement shall be applicable to this Agreement.

          SECTION 1.3. Resolution of Drafting Ambiguities. Each Pledgor acknowledges and agrees
that it was represented by counsel in connection with the execution and delivery hereof, that it
and its counsel reviewed and participated in the preparation and negotiation hereof and that any
rule of construction to the effect that ambiguities are to be resolved against the drafting party
(i.e., the Collateral Agent) shall not be employed in the interpretation hereof.

          SECTION 1.4. Perfection Certificate. The Collateral Agent and each Secured Party
agree that the Perfection Certificate and all descriptions of Pledged Collateral, schedules,
amendments and supplements thereto are and shall at all times remain a part of this Agreement.

ARTICLE II

GRANT OF SECURITY AND SECURED OBLIGATIONS

          SECTION 2.1. Grant of Security Interest. As collateral security for the payment and
performance in full of all the Secured Obligations, each Pledgor hereby pledges and grants to the
Collateral Agent for the benefit of the Secured Parties, a lien on and security interest in all
of the right, title and interest of such Pledgor in, to and under the following property,
wherever located, and whether now existing or hereafter arising or acquired from time to time
(collectively, the “Pledged Collateral”):

	 	(i)	 	all Accounts;

 

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	 	(ii)	 	all Equipment, Goods, Inventory and Fixtures;
	 
	 	(iii)	 	all Documents, Instruments and Chattel Paper;
	 
	 	(iv)	 	all Letters of Credit and Letter-of-Credit Rights;
	 
	 	(v)	 	all Securities Collateral;
	 
	 	(vi)	 	all Investment Property;
	 
	 	(vii)	 	all Patents, Trademarks, Copyrights, Intellectual Property
Licenses and Trade Secrets and Other Proprietary Rights;
	 
	 	(viii)	 	the Commercial Tort Claims described on Schedule 13 to the Perfection
Certificate;
	 
	 	(ix)	 	all General Intangibles;
	 
	 	(x)	 	all Money and all Deposit Accounts;
	 
	 	(xi)	 	all Supporting Obligations;
	 
	 	(xii)	 	all books and records relating to the Pledged Collateral; and
	 
	 	(xiii)	 	to the extent not covered by clauses (i) through (xii) of this sentence, all
other personal property of such Pledgor, whether tangible or intangible, and all
Proceeds and products of each of the foregoing and all accessions to, substitutions
and replacements for, and rents, profits and products of, each of the foregoing,
any and all Proceeds of any insurance, indemnity, warranty or guaranty payable to
such Pledgor from time to time with respect to any of the foregoing.

          Notwithstanding anything to the contrary contained in clauses (i) through (xiii) above, the
security interest created by this Agreement shall not extend to, and the term “Pledged Collateral”
shall not include, any Excluded Property and (x) the Pledgors shall, concurrently with any
delivery of financial statements under Section 5.01(a) of the Credit Agreement and upon the
request of the Collateral Agent at any time an Event of Default has occurred and is continuing,
“give written notice to the Collateral Agent identifying in reasonable detail the Excluded
Property and shall provide to the Collateral Agent such information regarding the Excluded
Property as the Collateral Agent may reasonably request (including written notice identifying in
reasonable detail the Excluded Property) and (y) from and after the Closing Date, no Pledgor shall
permit to become effective in any document creating, governing or providing for any permit,
license or agreement a provision that would prohibit the creation of a Lien on such permit,
license or agreement in favor of the Collateral Agent unless such prohibition is permitted under
Section 6.19 of the Credit Agreement.

          SECTION
2.2. Filings. (a) Each Pledgor hereby irrevocably authorizes the Collateral
Agent at any time and from time to time to file in any relevant jurisdiction any financing
statements (including fixture filings) and amendments thereto that contain the information
required by Article 9 of the Uniform Commercial Code of each applicable jurisdiction for the
filing of any financing

 

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statement or amendment relating to the Pledged Collateral, including (i) whether such Pledgor is an
organization, the type of organization and any organizational identification number issued to such
Pledgor, (ii) any financing or continuation statements or other documents without the signature of
such Pledgor where permitted by law, including the filing of a financing statement describing the
Pledged Collateral as “all assets now owned or hereafter acquired by the debtor or in which debtor
otherwise has rights” or a similar description and (iii) in the case of a financing statement filed
as a fixture filing, a sufficient description of the real property to which such Pledged Collateral
relates. Each Pledgor agrees to provide all information described in the immediately preceding
sentence to the Collateral Agent promptly upon request by the Collateral Agent.

          (b) Each Pledgor hereby ratifies its authorization for the Collateral Agent to file in any
relevant jurisdiction any financing statements relating to the Pledged Collateral if filed prior
to the date hereof.

          (c) Each Pledgor hereby further authorizes the Collateral Agent to execute and/or submit
filings with the United States Patent and Trademark Office or United States Copyright Office (or
any successor office or any similar office in any other country), as applicable, including this
Agreement, the Copyright Security Agreement, the Patent Security Agreement and the Trademark
Security Agreement, or other documents and to take such other actions as may be required under
applicable law for the purpose of perfecting, recording, confirming, continuing, enforcing or
protecting the security interest granted by such Pledgor hereunder, without the signature of such
Pledgor, and naming such Pledgor, as debtor, and the Collateral Agent, as secured party.

ARTICLE III

PERFECTION; SUPPLEMENTS; FURTHER ASSURANCES;

USE OF PLEDGED COLLATERAL

          SECTION 3.1. Delivery of Certificated Securities Collateral. Each Pledgor represents
and warrants that all certificates, agreements or instruments representing or evidencing the
Securities Collateral (other than Excluded Property and any certificates, agreements or
instruments representing or evidencing Equity Interests in an Excluded Collateral Subsidiary which
is not a Loan Party) in existence on the date hereof have been delivered to the Collateral Agent
in suitable form for transfer by delivery or accompanied by duly executed instruments of transfer
or assignment in blank and that the Collateral Agent has a perfected First Priority security
interest therein. Each Pledgor hereby agrees that all certificates, agreements or instruments
representing or evidencing Securities Collateral acquired by such Pledgor after the date hereof
shall promptly (but in any event within thirty days after receipt thereof by such Pledgor or such
longer period as may be determined by the Collateral Agent in its sole discretion) be delivered to
and held by or on behalf of the Collateral Agent pursuant hereto (provided that
notwithstanding the foregoing, no such certificates, agreements or instruments representing or
evidencing Securities Collateral shall be required to be so delivered to the extent such
Securities Collateral constitutes Excluded Property or any certificates, agreements or instruments
representing or evidencing Equity Interests in an Excluded Collateral Subsidiary which is not a
Loan Party, but shall be so delivered promptly (but in any event within thirty days) following the
date such Securities Collateral ceases to constitute Excluded Property or such Subsidiary ceases
to qualify as an Excluded Collateral Subsidiary or otherwise becomes, or is required to become, a
Loan Party pursuant to the terms of the Credit Agreement). All certificated Securities Collateral
shall be in suitable form for transfer by delivery

 

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or shall be accompanied by duly executed instruments of transfer or assignment in blank, all in
form and substance satisfactory to the Collateral Agent. The Collateral Agent shall have the right,
at any time upon the occurrence and during the continuance of any Event of Default, to endorse,
assign or otherwise transfer to or to register in the name of the Collateral Agent or any of its
nominees or endorse for negotiation any or all of the Securities Collateral. In addition, upon the
occurrence and during the continuance of an Event of Default, the Collateral Agent shall have the
right at any time to exchange certificates representing or evidencing Securities Collateral for
certificates of smaller or larger denominations.

          SECTION
3.2. Perfection of Uncertificated Securities Collateral. Each Pledgor
represents and warrants that the Collateral Agent has a perfected First Priority security interest
in all uncertificated Pledged Securities (other than uncertificated Pledged Securities in which a
security interest cannot be perfected by taking all applicable actions under the UCC and such
other actions (including, without limitation, the delivery or filing of financing, statements,
agreements instruments or other documents) as may have been reasonably requested by the Collateral
Agent in order to perfect such security interest under the local laws of the jurisdiction of the
issuer of such Pledged Securities) pledged by it hereunder that are in existence on the date
hereof. Each Pledgor hereby agrees that if any of the Pledged Securities are at any time not
evidenced by certificates of ownership, then each applicable Pledgor shall, to the extent
permitted by applicable law, (i) cause (or in the case of Pledged Securities issued by an issuer
that is not a Wholly Owned Subsidiary, use commercially reasonable efforts to cause) the issuer to
execute and deliver to the Collateral Agent an acknowledgment of the pledge of such Pledged
Securities substantially in the form of Exhibit 1 hereto or such other form that is
reasonably satisfactory to the Collateral Agent, (ii) if necessary or desirable to perfect a
security interest in such Pledged Securities, cause (or in the case of Pledged Securities issued
by an issuer that is not a Wholly Owned Subsidiary, use commercially reasonable efforts to cause)
the issuer of such uncertificated Pledged Securities to enter into a control agreement with the
Collateral Agent and such Pledgor reasonably satisfactory to the Collateral Agent pursuant to
which such issuer shall agree to comply with instructions originated by the Collateral Agent
without further consent by such Pledgor, and cause (or in the case of Pledged Securities issued by
an issuer that is not a Wholly Owned Subsidiary, use commercially reasonable efforts to cause)
such pledge to be recorded on the equityholder register or the books of the issuer, execute any
customary pledge forms or other documents necessary or appropriate to complete the pledge and give
the Collateral Agent the right to transfer such Pledged Securities under the terms hereof, (iii)
upon request by the Collateral Agent, provide to the Collateral Agent an opinion of counsel, in
form and substance reasonably satisfactory to the Collateral Agent, confirming such pledge and
perfection thereof, and (iv) after the occurrence and during the continuance of any Event of
Default, upon request by the Collateral Agent, (A) cause (or in the case of Pledged Securities
issued by an issuer that is not a Wholly Owned Subsidiary, use commercially reasonable efforts to
cause) the Organizational Documents of each such issuer that is a Subsidiary of a Pledgor to be
amended to provide that such Pledged Securities shall be treated as “securities” for purposes of
the UCC and (B) cause (or in the case of Pledged Securities issued by an issuer that is not a
Wholly Owned Subsidiary, use commercially reasonable efforts to cause) such Pledged Securities to
become certificated and delivered to the Collateral Agent in accordance with the provisions of
Section 3.1.

          SECTION
3.3. Financing Statements and Other Filings; Maintenance of Perfected Security
Interest. Each Pledgor represents and warrants that all financing statements, agreements,
instruments and other documents necessary to perfect the security interest granted by it to the
Collateral Agent in respect of the Pledged Collateral (other than uncertificated Pledged
Securities in which a security interest cannot be perfected by taking all applicable actions under
the UCC and such other actions (including, without limitation, the delivery or filing of
financing, statements, agreements

 

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instruments or other documents) as may have been reasonably requested by the Collateral Agent in
order to perfect such security interest under the local laws of the jurisdiction of the issuer of
such Pledged Securities) have been delivered to the Collateral Agent in completed and, to the
extent necessary or appropriate, duly executed form for filing in each governmental, municipal or
other office specified in Schedule 7 to the Perfection Certificate. Each Pledgor agrees
that at the sole cost and expense of the Pledgors, such Pledgor will maintain the security interest
created by this Agreement in the Pledged Collateral (other than uncertificated Pledged Securities
in which a security interest cannot be perfected by taking all applicable actions under the UCC and
such other actions (including, without limitation, the delivery or filing of financing, statements,
agreements instruments or other documents) as may have been reasonably requested by the Collateral
Agent in order to perfect such security interest under the local laws of the jurisdiction of the
issuer of such Pledged Securities) as a perfected First Priority security interest subject only to
Permitted Collateral Liens.

          SECTION 3.4. Other Actions. In order to further ensure the attachment, perfection and
priority of, and the ability of the Collateral Agent to enforce, the Collateral Agent’s security
interest in the Pledged Collateral, each Pledgor represents and warrants (as to itself) as follows
and agrees, in each case at such Pledgor’s own expense, to take the following actions with respect
to the following Pledged Collateral:

     (a) Instruments and Tangible Chattel Paper. As of the date hereof, no amounts
payable under or in connection with any of the Pledged Collateral are evidenced by any
Instrument or Tangible Chattel Paper other than such Instruments and Tangible Chattel Paper
listed in Schedule 11 to the Perfection Certificate. Each Instrument and each item
of Tangible Chattel Paper listed in Schedule 11 to the Perfection Certificate has
been properly endorsed, assigned and delivered to the Collateral Agent, accompanied by
instruments of transfer or assignment duly executed in blank. If any amount then payable
under or in connection with any of the Pledged Collateral shall be evidenced by any
Instrument or Tangible Chattel Paper, and such amount, together with all amounts payable
evidenced by any Instrument or Tangible Chattel Paper not previously delivered to the
Collateral Agent exceeds $1,000,000 in the aggregate for all Pledgors, the Pledgor acquiring
such Instrument or Tangible Chattel Paper shall promptly (but in any event within thirty
days after receipt thereof) endorse, assign and deliver the same to the Collateral Agent,
accompanied by such instruments of transfer or assignment duly executed in blank as the
Collateral Agent may from time to time specify.

     (b) Deposit Accounts. As of the date hereof, no Pledgor has any Deposit
Accounts other than the accounts listed in Schedule 14 to the Perfection
Certificate. The Collateral Agent has a First Priority security interest in each such
Deposit Account (other than Excluded Deposit Accounts), which security interest is (or, with
respect to any such Deposit Accounts identified on Schedule 5.16 to the Credit Agreement,
after completion of the actions with respect to such Deposit Accounts specified on such
Schedule, will be) perfected by Control. No Pledgor shall hereafter establish and maintain
any Deposit Account unless (1) it shall have given the Collateral Agent 30 days’ (or such
shorter period as may be determined by the Collateral Agent in its sole discretion) prior
written notice of its intention to establish such new Deposit Account with a Bank, (2) such
Bank shall be reasonably acceptable to the Collateral Agent and (3) such Bank and such
Pledgor shall have duly executed and delivered to the Collateral Agent a Deposit Account
Control Agreement with respect to such Deposit Account (other than Excluded Deposit
Accounts). The Collateral Agent agrees with each Pledgor that the Collateral Agent shall
not give any instructions directing the disposition of funds from time to time credited to
any Deposit Account or withhold any withdrawal rights from such Pledgor with respect to
funds from time to

 

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time credited to any Deposit Account unless an Event of Default has occurred and is continuing. The
two immediately preceding sentences shall not apply to any other Deposit Accounts for which the
Collateral Agent is the Bank. No Pledgor shall grant Control of any Deposit Account to any person
other than the Collateral Agent and, subject to the terms of the Intercreditor Agreement, Revolving
Credit Agents.

     (c) Securities Accounts and Commodity Accounts, (i) As of the date hereof, no
Pledgor has any Securities Accounts or Commodity Accounts other than
those listed in Schedule 14 to the Perfection Certificate. The Collateral Agent has a First Priority security interest
in each such Securities Account and Commodity Account (other than Excluded Securities Accounts and
Excluded Commodities Accounts), which security interest is perfected by Control. No Pledgor shall
hereafter establish and maintain any Securities Account or Commodity Account with any Securities
Intermediary or Commodity Intermediary unless (1) it shall have given the Collateral Agent 30 days’
(or such shorter period as may be determined by the Collateral Agent in its sole discretion) prior
written notice of its intention to establish such new Securities Account or Commodity Account with
such Securities Intermediary or Commodity Intermediary, (2) such Securities Intermediary or
Commodity Intermediary shall be reasonably acceptable to the Collateral Agent and (3) such
Securities Intermediary or Commodity Intermediary, as the case may be, and such Pledgor shall have
duly executed and delivered a Control Agreement with respect to such Securities Account or
Commodity Account (other than Excluded Securities Accounts and Excluded Commodities Accounts), as
the case may be. Each Pledgor shall accept any cash and Investment Property in trust for the
benefit of the Collateral Agent and within five days of actual receipt thereof, deposit any and all
cash and Investment Property received by it into a Deposit Account or Securities Account. The
Collateral Agent agrees with each Pledgor that the Collateral Agent shall not give any Entitlement
Orders or instructions or directions to any issuer of uncertificated securities, Securities
Intermediary or Commodity Intermediary, and shall not withhold its consent to the exercise of any
withdrawal or dealing rights by such Pledgor, unless an Event of Default has occurred and is
continuing or, after giving effect to any such investment and with drawal rights, would occur. The
two immediately preceding sentences shall not apply to any Financial Assets credited to a
Securities Account for which the Collateral Agent is the Securities Intermediary. No Pledgor
shall grant Control over any Investment Property to any person other than the Collateral Agent and,
subject to the terms of the Intercreditor Agreement, Revolving Credit Agents.

     (ii) As between the Collateral Agent and the Pledgors, the Pledgors shall bear the investment
risk with respect to the Investment Property and Pledged Securities, and the risk of loss of,
damage to, or the destruction of the Investment Property and Pledged Securities, whether in the
possession of, or maintained as a Security Entitlement or deposit by, or subject to the Control
of, the Collateral Agent, a Securities Intermediary, a Commodity Intermediary, any Pledgor or any
other person.

     (d) Electronic Chattel Paper and Transferable Records. As of the date hereof, no
amount under or in connection with any of the Pledged Collateral is evidenced by any Electronic
Chattel Paper or any “transferable record” (as that term is defined in Section 201 of the Federal
Electronic Signatures in Global and National Commerce Act, or in Section 16 of the Uniform
Electronic Transactions Act as in effect in any relevant jurisdiction) other than such Electronic
Chattel Paper and transferable records listed in Schedule 11 (a) to the Perfection
Certificate. If any amount payable under or in connection with any of the Pledged Collateral shall
be evidenced by any Electronic Chattel Paper or any transferable record, the Pledgor acquiring such
Electronic

 

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Chattel Paper or transferable record shall promptly notify the Collateral Agent thereof and shall
take such action as the Collateral Agent may reasonably request to vest in the Collateral Agent
control of such Electronic Chattel Paper under Section 9-105 of the UCC or control under Section
201 of the Federal Electronic Signatures in Global and National Commerce Act or, as the case may
be, Section 16 of the Uniform Electronic Transactions Act, as so in effect in such jurisdiction, of
such transferable record. The requirement in the preceding sentence shall not apply to the extent
that such amount, together with all amounts payable evidenced by Electronic Chattel Paper or any
transferable record in which the Collateral Agent has not been vested control within the meaning of
the statutes described in the immediately preceding sentence, does not exceed $1,000,000 in the
aggregate for all Pledgors. The Collateral Agent agrees with such Pledger that the Collateral Agent
will arrange, pursuant to procedures satisfactory to the Collateral Agent and so long as such
procedures will not result in the Collateral Agent’s loss of control, for the Pledgor to make
alterations to the Electronic Chattel Paper or transferable record permitted under Section 9-105 of
the UCC or, as the case may be, Section 201 of the Federal Electronic Signatures in Global and
National Commerce Act or Section 16 of the Uniform Electronic Transactions Act for a party in
control to allow without loss of control, unless an Event of Default has occurred and is continuing
or would occur after taking into account any action by such Pledgor with respect to such Electronic
Chattel Paper or transferable record.

     (e) Letter-of-Credit Rights. If any Pledgor is at any time a beneficiary under a
Letter of Credit now or hereafter issued, such Pledgor shall promptly notify the Collateral Agent
thereof and such Pledgor shall, at the request of the Collateral Agent, pursuant to an agreement in
form and substance reasonably satisfactory to the Collateral Agent, either use commercially
reasonable efforts to (i) arrange for the issuer and any confirmer of such Letter of Credit to
consent to an assignment to the Collateral Agent of the proceeds of any drawing under the Letter of
Credit or (ii) arrange for the Collateral Agent to become the transferee beneficiary of such Letter
of Credit, with the Collateral Agent agreeing, in each case, that the proceeds of any drawing under
the Letter of Credit are to be applied as provided in the Credit Agreement. The actions in the
preceding sentence shall not be required to the extent that the amount of any such Letter of
Credit, together with the aggregate amount of all other Letters of Credit for which the actions
described above in clause (i) and (ii) have not been taken, does not exceed $1,000,000 in the
aggregate for all Pledgors.

     (f) Commercial Tort Claims. As of the date hereof, each Pledgor hereby represents
and warrants that it holds no Commercial Tort Claims other than those listed in Schedule 13
to the Perfection Certificate. If any Pledgor shall at any time hold or acquire a Commercial Tort
Claim, such Pledgor shall promptly notify the Collateral Agent in writing signed by such Pledgor of
the brief details thereof and grant to the Collateral Agent in such writing a security interest
therein and in the Proceeds thereof, all upon the terms of this Agreement, with such writing to be
in form and substance reasonably satisfactory to the Collateral Agent. The requirement in the
preceding sentence shall not apply to the extent that the amount of such Commercial Tort Claim,
together with the amount of all other Commercial Tort Claims held by any Pledgor in which the
Collateral Agent does not have a security interest, does not exceed $1,000,000 in the aggregate for
all Pledgors.

     (g) Landlord’s Access Agreements/Bailee Letters. If and to the extent reasonably
requested by the Collateral Agent, each Pledgor shall use its commercially reasonable efforts to
obtain as soon as practicable after such request with respect to each location where such Pledgor
maintains Pledged Collateral, a Bailee Letter and/or Landlord Access Agreement, as applicable,

 

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and use commercially reasonable efforts to obtain a Bailee Letter, Landlord Access
Agreement and/or landlord’s lien waiver, as applicable, from all such bailees and
landlords, as applicable, who from time to time have possession of any Pledged Collateral.
A waiver of bailee’s lien shall not be required if the value of the Pledged Collateral held
by such bailee is less than $100,000, provided that the aggregate value of the Pledged
Collateral held by all bailees who have not delivered a Bailee Letter is less than
$1,000,000 in the aggregate.

          SECTION 3.5. Joinder of Additional Guarantors. The Pledgors shall cause each
Subsidiary of Holdings which, from time to time, after the date hereof shall be required to become
a party to this Agreement or to otherwise pledge any assets to the Collateral Agent for the benefit
of the Secured Parties pursuant to the provisions of the Credit Agreement, (a) to execute and
deliver to the Collateral Agent (i) a Joinder Agreement substantially in the form of Exhibit
3 hereto within thirty days (or such longer period as may be determined by the Collateral Agent
in its sole discretion) of the date on which it became a Subsidiary, ceased to be an Excluded
Collateral Subsidiary or was required to become a Loan Party by operation of the provisions of
Section 5.11(d) of the Credit Agreement, as the case may be, and (ii) a Perfection Certificate, in
each case, within thirty days (or such longer period as may be determined by the Collateral Agent
in its sole discretion) of the date on which it became a Subsidiary, ceased to be an Excluded
Collateral Subsidiary or was required to become a Loan Party by operation of the provisions of
Section 5.1 l(d) of the Credit Agreement, as the case may be, and (b) in the case of a Subsidiary
organized outside of the United States, to execute and deliver to the Collateral Agent such
additional documentation as the Collateral Agent shall reasonably request and, in each case with
respect to clauses (a) and (b) above, upon such execution and delivery, such Subsidiary shall
constitute a “Guarantor” and a “Pledgor” for all purposes hereunder with the same force and effect
as if originally named as a Guarantor and Pledgor herein. The execution and delivery of such
Joinder Agreement shall not require the consent of any Pledgor hereunder. The rights and
obligations of each Pledgor hereunder shall remain in full force and effect notwithstanding the
addition of any new Guarantor and Pledgor as a party to this Agreement.

          SECTION 3.6. Supplements; Further Assurances. Each Pledgor shall take such further
actions, and execute and/or deliver to the Collateral Agent such additional financing statements,
amendments, assignments, agreements, supplements, powers and instruments, as the Collateral Agent
may in its reasonable judgment deem necessary or appropriate in order to create, perfect, preserve
and protect the security interest in the Pledged Collateral as provided herein and the rights and
interests granted to the Collateral Agent hereunder, to carry into effect the purposes hereof or
better to assure and confirm the validity, enforceability and priority of the Collateral Agent’s
security interest in the Pledged Collateral or permit the Collateral Agent to exercise and enforce
its rights, powers and remedies hereunder with respect to any Pledged Collateral, including the
filing of financing statements, continuation statements and other documents (including this
Agreement) under the Uniform Commercial Code (or other similar laws) in effect in any jurisdiction
with respect to the security interest created hereby and the execution and delivery of Control
Agreements, all in form and substance reasonably satisfactory to the Collateral Agent and in such
offices (including the United States Patent and Trademark Office and the United States Copyright
Office) wherever required by law to perfect, continue and maintain the validity, enforceability
and priority of the security interest in the Pledged Collateral as provided herein and to preserve
the other rights and interests granted to the Collateral Agent hereunder, as against third
parties, with respect to the Pledged Collateral. Without limiting the generality of the foregoing,
each Pledgor shall make, execute, endorse, acknowledge, file or refile and/or deliver to the
Collateral Agent from time to time upon reasonable request by the Collateral Agent such lists,
schedules, descriptions and designations of the Pledged Collateral, copies of warehouse receipts,
receipts in the nature of warehouse receipts, bills of lading, documents of title, vouchers,
invoices, schedules, confirmatory assignments, supplements, additional security agreements,
conveyances, financing

 

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statements, transfer endorsements, powers of attorney, certificates, reports and other assurances
or instruments as the Collateral Agent shall reasonably request. If an Event of Default has
occurred and is continuing, the Collateral Agent may institute and maintain, in its own name or in
the name of any Pledgor, such suits and proceedings as the Collateral Agent may be advised by
counsel shall be necessary or expedient to prevent any impairment of the security interest in or
the perfection thereof in the Pledged Collateral. All of the foregoing shall be at the sole cost
and expense of the Pledgors.

ARTICLE IV

REPRESENTATIONS, WARRANTIES AND COVENANTS

          Each Pledgor represents, warrants and covenants as follows:

          SECTION 4.1. Title. Except for the security interest granted to the Collateral Agent
for the ratable benefit of the Secured Parties pursuant to this Agreement and Permitted Liens,
such Pledgor owns and has rights and, as to Pledged Collateral acquired by it from time to time
after the date hereof, will own and have rights in each item of Pledged Collateral pledged by it
hereunder, free and clear of any and all Liens or claims of others. In addition, no Liens or
claims exist on the Securities Collateral, other than Permitted Liens that are permitted to attach
to Securities Collateral pursuant to the provisions of Section 6.02 of the Credit Agreement.

          SECTION 4.2. Validity of Security Interest. The security interest in and Lien on the
Pledged Collateral granted to the Collateral Agent for the benefit of the Secured Parties
hereunder constitutes (a) a legal and valid security interest in all the Pledged Collateral
securing the payment and performance of the Secured Obligations, and (b) subject to the filings
and other actions described in Schedule 6 to the Perfection Certificate (to the extent
required to be listed on the schedules to the Perfection Certificate as of the date this
representation is made or deemed made), a perfected security interest in all the Pledged
Collateral. The security interest and Lien granted to the Collateral Agent for the benefit of the
Secured Parties pursuant to this Agreement in and on the Pledged Collateral will at all times
constitute a perfected, continuing First Priority security interest therein.

          SECTION
4.3. Defense of Claims; Transferability of Pledged Collateral. Except to the
extent otherwise permitted by Section 5.05 of the Credit Agreement, each Pledgor shall, at its own
cost and expense, defend title to the Pledged Collateral pledged by it hereunder and the security
interest therein and Lien thereon granted to the Collateral Agent and the priority thereof against
all claims and demands of all persons, at its own cost and expense, at any time claiming any
interest therein adverse to the Collateral Agent or any other Secured Party other than Permitted
Encumbrances. Except as permitted by the Credit Agreement, there is no agreement, order, judgment
or decree, and no Pledgor shall enter into any agreement or take any other action, that would
restrict the transferability of any of the Pledged Collateral or otherwise impair or conflict with
such Pledgor’s obligations or the rights of the Collateral Agent hereunder.

          SECTION 4.4. Other Financing Statements. It has not filed, nor authorized any third
party to file, any valid or effective financing statement (or similar statement, instrument of
registration or public notice under the law of any jurisdiction) covering or purporting to cover
any interest of any kind in the Pledged Collateral, except such as have been filed in favor of the
Collateral Agent pursuant to this Agreement or in favor of any holder of a Permitted Encumbrance
with respect to such Permitted

 

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Encumbrance or financing statements or public notices relating to the termination statements listed
on Schedule 7 to the Perfection Certificate. No Pledgor shall execute, authorize or permit
to be filed in any public office any financing statement (or similar statement, instrument of
registration or public notice under the law of any jurisdiction) relating to any Pledged
Collateral, except financing statements and other statements and instruments filed or to be filed
in respect of and covering the security interests granted by such Pledgor to the holders of the
Permitted Encumbrances.

          SECTION 4.5. Inventory and Equipment.

          (a) Except as expressly permitted by Section 5.13 of the Credit Agreement, it shall not move
any Equipment or Inventory (other than Inventory in transit from a supplier or vendor to a
permitted location or between permitted locations or Inventory in transit to a customer, and
Inventory having Dollar Equivalent fair market value not in excess of $10,000,000 (in the aggregate
for all Loan Parties) located at locations not identified on the relevant Schedules to the
Perfection Certificate) to any location, other than any location that is listed in the relevant
Schedules to the Perfection Certificate, unless (i) it shall have given the Collateral Agent not
less than 30 days’ (or such shorter period as may be determined by the Collateral Agent in its sole
discretion) prior written notice (in the form of an Officers’ Certificate) of its intention so to
do, clearly describing such new location and providing such other information in connection
therewith as the Collateral Agent may request and (ii) to the extent applicable with respect to
such new location, such Pledgor shall have complied with
Section 3.4(g); provided that
notwithstanding the foregoing, in no event shall Equipment or Inventory be moved to any location
outside of the continental United States except in connection with an Asset Sale expressly
permitted by the Credit Agreement.

          (b) With respect to any Inventory scheduled or listed on the most recent Collateral Report,
except as disclosed therein: (i) no Inventory (other than Inventory in transit) is now, or shall
at any time or times hereafter be stored at any other location not set forth in the Perfection
Certificate except as permitted by Section 4.5(a), (ii) the Pledgors have good, indefeasible
and merchantable title to such Inventory and such Inventory is not subject to any Lien or security
interest or document whatsoever except for the Lien granted to the Collateral Agent, for the
benefit of the Secured Parties, and except for other Liens permitted under Section 6.02 of the
Credit Agreement, (iii) such Inventory is not subject to any Intellectual Property Licenses with
any third parties that would, upon sale or other disposition of such Inventory by the Collateral
Agent in accordance with the terms hereof, infringe or otherwise violate the Intellectual Property
of such third-party licensor, violate any Contracts with such third-party licensor, or cause the
Collateral Agent to incur any liability with respect to payment of royalties other than royalties
incurred pursuant to sale of such Inventory under the current Intellectual Property Licenses
related thereto, (iv) such Inventory has been produced in accordance with the Federal Fair Labor
Standards Act of 1938, as amended, and all rules, regulations and orders thereunder and (v) the
completion of manufacture, sale or other disposition of such Inventory by the Collateral Agent upon
the occurrence and during the continuance of any Event of Default shall not require the consent of
any person and shall not constitute a breach or default under any contract or agreement to which
any Pledgor is a party or to which such Inventory is subject.

          SECTION 4.6. Due Authorization and Issuance. All of the Pledged Securities existing
on the date hereof have been, and to the extent any Pledged Securities are hereafter issued, such
Pledged Securities will be, upon such issuance, duly authorized, validly issued and fully paid
and nonassessable to the extent applicable. There is no amount or other obligation owing by any
Pledgor to any issuer of the Pledged Securities in exchange for or in connection with the
issuance of the Pledged Securities or any Pledgor’s status as a partner or a member of any issuer
of the Pledged Securities.

 

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          SECTION 4.7. Consents, etc. In the event that the Collateral Agent desires to exercise
any remedies, voting or consensual rights or attorney-in-fact powers set forth in this Agreement
and determines it necessary to obtain any approvals or consents of any Governmental Authority or
any other person therefor, then, upon the reasonable request of the Collateral Agent, such Pledgor
agrees to use its best efforts to assist and aid the Collateral Agent to obtain as soon as
practicable any necessary approvals or consents for the exercise of any such remedies, rights and
powers.

          SECTION 4.8. Pledged Collateral. All information set forth herein, including the
schedules hereto, and all information contained in any documents, schedules and lists heretofore
delivered to any Secured Party, including the Perfection Certificate and the schedules thereto, in
connection with this Agreement, in each case, relating to the Pledged Collateral, is accurate and
complete in all material respects. The Pledged Collateral described on the schedules to the
Perfection Certificate constitutes all of the property of such type of Pledged Collateral owned or
held by the Pledgors (other than Immaterial Intellectual Property Collateral).

          SECTION 4.9. Insurance. In the event that the proceeds of any insurance claim are
paid to any Pledgor after the Collateral Agent has exercised its right to foreclose after an Event
of Default, such Net Cash Proceeds shall be held in trust for the benefit of the Collateral Agent
and immediately after receipt thereof shall be paid to the Collateral Agent for application in
accordance with the Credit Agreement.

ARTICLE V

CERTAIN PROVISIONS CONCERNING SECURITIES COLLATERAL

          SECTION 5.1. Pledge of Additional Securities Collateral. Each Pledgor shall, upon
obtaining any Pledged Securities or Intercompany Notes of any person, accept the same in trust for
the benefit of the Collateral Agent and promptly (but in any event within thirty days (or such
longer period as may be determined by the Collateral Agent in its sole discretion) after receipt
thereof) deliver to the Collateral Agent a pledge amendment, duly executed by such Pledgor, in
substantially the form of Exhibit 2 hereto (each, a
“Pledge Amendment”), and to the extent
required thereunder, the certificates and other documents required
under Section 3.1 and
Section 3.2 hereof in respect of the additional Pledged Securities or Intercompany Notes
which are to be pledged pursuant to this Agreement, and confirming the attachment of the Lien
hereby created on and in respect of such additional Pledged Securities or Intercompany Notes. Each
Pledgor hereby authorizes the Collateral Agent to attach each Pledge Amendment to this Agreement
and agrees that all Pledged Securities or Intercompany Notes listed on any Pledge Amendment
delivered to the Collateral Agent shall for all purposes hereunder be considered Pledged
Collateral.

          SECTION
5.2. Voting Rights: Distributions: etc.

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

     (i) Each Pledgor shall be entitled to exercise any and all voting and other
consensual rights pertaining to the Securities Collateral or any part thereof for any
purpose not inconsistent with the terms or purposes hereof, the Credit Agreement or any
other document evidencing the

 

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Secured Obligations; provided, however, that no Pledgor shall in any event exercise
such rights in any manner which could reasonably be expected to have a Material Adverse
Effect.

     (ii) Each Pledgor shall be entitled to receive and retain, and to utilize free and
clear of the Lien hereof, any and all Distributions, but only if and to the extent not
prohibited by the Credit Agreement; provided, however, that any and all such
Distributions consisting of rights or interests in the form of securities shall be
forthwith delivered to the Collateral Agent to hold as Pledged Collateral and shall, if
received by any Pledgor, be received in trust for the benefit of the Collateral Agent, be
segregated from the other property or funds of such Pledgor and be promptly (but in any
event within five days (or such longer period as may be determined by the Collateral Agent
in its sole discretion) after receipt thereof) delivered to the Collateral Agent as Pledged
Collateral in the same form as so received (with any necessary endorsement).

          (b) So long as no Event of Default shall have occurred and be continuing, the
Collateral Agent shall be deemed without further action or formality to have granted to each
Pledgor all
necessary consents relating to voting rights and shall, if necessary, upon written request of
any Pledgor
and at the sole cost and expense of the Pledgors, from time to time execute and deliver (or
cause to be
executed and delivered) to such Pledgor all such instruments as such Pledgor may reasonably
request in
order to permit such Pledgor to exercise the voting and other rights which it is entitled to
exercise
pursuant to Section 5.2(a)(i) hereof and to receive the Distributions which it is
authorized to receive and
retain pursuant to Section 5.2(a)(ii) hereof.

          (c) Upon the occurrence and during the continuance of any Event of Default and
notice by the Collateral Agent:

     (i) All rights of each Pledgor to exercise the voting and other consensual rights it
would otherwise be entitled to exercise pursuant to Section 5.2(a)(i) hereof shall
immediately cease, and all such rights shall thereupon become vested in the Collateral
Agent, which shall thereupon have the sole right to exercise such voting and other
consensual rights.

     (ii) All rights of each Pledgor to receive Distributions which it would otherwise be
authorized to receive and retain pursuant to Section 5.2(a)(ii) hereof shall
immediately cease and all such rights shall thereupon become vested in the Collateral
Agent, which shall thereupon have the sole right to receive and hold as Pledged Collateral
such Distributions.

          (d) Each
Pledgor shall, at its sole cost and expense, from time to time execute and
deliver to the Collateral Agent appropriate instruments as the Collateral Agent may request in
order to
permit the Collateral Agent to exercise the voting and other rights which it may be entitled
to exercise
pursuant to Section 5.2(c)(i) hereof and to receive all Distributions which it may be
entitled to receive
under 

Section 5.2(c)(ii) hereof.

          (e) All
Distributions which are received by any Pledgor contrary to the provisions of Section 5.2(c)(ii) hereof shall be received in trust for the benefit of the Collateral
Agent, shall be
segregated from other funds of such Pledgor and shall immediately be paid over to the
Collateral Agent as
Pledged Collateral in the same form as so received (with any necessary endorsement).

          SECTION 5.3. Defaults, etc. Such Pledgor is not in default in the payment of any
portion of any mandatory capital contribution, if any, required to be made under any agreement to
which such Pledgor is a party relating to the Pledged Securities pledged by it, and such Pledgor
is not in

 

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violation in any material respect of any other provisions of any such agreement to which such
Pledgor is a party, or otherwise in default or violation in any material respect thereunder. No
Securities Collateral pledged by such Pledgor is subject to any defense, offset or counterclaim,
nor have any of the foregoing been asserted or alleged against such Pledgor by any person with
respect thereto, and as of the date hereof, there are no certificates, instruments, documents or
other writings (other than the Organizational Documents and certificates representing such Pledged
Securities that have been delivered to the Collateral Agent) which evidence any Pledged Securities
of such Pledgor.

          SECTION 5.4. Organizational Documents. Each Pledgor has delivered to the Collateral
Agent true, correct and complete copies of its Organizational Documents. The Organizational
Documents of each Pledgor are in full force and effect, have not as of the date hereof been
amended or modified except as disclosed to the Collateral Agent, and there is no existing default
by any party thereunder or any event which, with the giving of notice or passage of time or both,
would constitute a default by any party thereunder. Each Pledgor shall deliver to the Collateral
Agent a copy of any notice of default given or received by it under any Organizational Document
within ten days after such Pledgor gives or receives such notice. No Pledgor will terminate or
agree to terminate any Organizational Document or make any amendment or modification to any
Organizational Document except as expressly permitted by the terms of the Credit Agreement.

          SECTION 5.5. Certain Agreements of Pledgors As Issuers and Holders of Equity
Interests.

          (a) In the case of each Pledgor which is an issuer of Securities Collateral, such
Pledgor agrees to be bound by the terms of this Agreement relating to the Securities
Collateral issued by it
and will comply with such terms insofar as such terms are applicable to it.

          (b) In the case of each Pledgor which is a partner, shareholder or member, as the
case may be, in a partnership, limited liability company or other entity, such Pledgor hereby
consents to
the extent required by the applicable Organizational Document to the pledge by each other
Pledgor,
pursuant to the terms hereof, of the Pledged Securities in such partnership, limited liability
company or
other entity and, upon the occurrence and during the continuance of an Event of Default, to
the transfer of
such Pledged Securities to the Collateral Agent or its nominee and to the substitution of the
Collateral
Agent or its nominee as a substituted partner, shareholder or member in such partnership,
limited liability
company or other entity with all the rights, powers and duties of a general partner, limited
partner,
shareholder or member, as the case may be.

ARTICLE VI

CERTAIN PROVISIONS CONCERNING INTELLECTUAL

PROPERTY COLLATERAL

          SECTION 6.1. Grant of Intellectual Property License. For the purpose of enabling the
Collateral Agent, during the continuance of an Event of Default, to exercise rights and remedies
under Article IX hereof at such time as the Collateral Agent shall be lawfully entitled to
exercise such rights and remedies, and for no other purpose, each Pledgor hereby grants to the
Collateral Agent an irrevocable, non-exclusive license and, to the extent permitted under
Intellectual Property Licenses granting such Pledgor rights in Intellectual Property, sublicense
(in each case, exercisable without payment of royalties

 

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or other compensation to such Pledgor) to use, license or sublicense any of the Intellectual
Property Collateral now owned or hereafter acquired by such Pledgor, wherever the same may be
located; provided that the quality of any products in connection with which the Trademarks
are used will not be materially inferior to the quality of such products prior to such Event of
Default. Such license shall include access to all media in which any of the licensed items may be
recorded or stored and to all computer programs used for the compilation or printout hereof.

          SECTION 6.2. Protection and Maintenance of Intellectual Property Collateral. On a
continuing basis, each Pledgor shall, at its sole cost and expense, (i) promptly following its
becoming aware thereof, notify the Collateral Agent of any adverse determination in any proceeding
(not including office or other matters in the ordinary course of prosecution before the United
States Patent and Trademark Office or the United States Copyright Office or any foreign
counterpart) or the institution of any proceeding in any federal, state or local court or
administrative body or in the United States Patent and Trademark Office or the United States
Copyright Office regarding any Material Intellectual Property Collateral, such Pledgor’s right to
register such Material Intellectual Property Collateral or its right to keep and maintain such
Material Intellectual Property Collateral in full force and effect, (ii) maintain all Material
Intellectual Property Collateral as presently used and operated, except as shall be consistent with
commercially reasonable business judgment, (iii) not permit to lapse or become abandoned any
Material Intellectual Property Collateral, (iv) take action to prosecute infringers and violators
of Material Intellectual Property Collateral, and not settle or compromise any pending or future
litigation or administrative proceeding with respect to any Material Intellectual Property
Collateral, in each case, except as shall be consistent with commercially reasonable business
judgment, (v) upon such Pledgor obtaining knowledge thereof, promptly notify the Collateral Agent
in writing of any event which may be reasonably expected to materially and adversely affect the
value or utility of any Material Intellectual Property Collateral, or the value or utility of the
Intellectual Property of the Pledgors, taken as a whole, or the rights and remedies of the
Collateral Agent in relation thereto including a levy or threat of levy or any legal process
against any Material Intellectual Property Collateral, (vi) not license any Intellectual Property
Collateral other than licenses entered into by such Pledgor in, or incidental to, the ordinary
course of business, or amend or permit the amendment of any of the licenses in a manner that
materially and adversely affects the right to receive payments thereunder, or in any manner that
would materially impair the value of any Intellectual Property Collateral or the Lien on and
security interest in the Intellectual Property Collateral created therein hereby, without the
consent of the Collateral Agent, (vii) diligently keep adequate records respecting all Intellectual
Property Collateral, (viii) without limiting the Collateral Agent’s rights and each Pledgor’s
obligations under Section 6.3 below, furnish to the Collateral Agent from time to time
upon the Collateral Agent’s request therefor reasonably detailed statements and amended schedules
further identifying and describing the Intellectual Property Collateral and such other materials
evidencing or reports pertaining to any Intellectual Property Collateral as the Collateral Agent
may from time to time request, (ix) use statutory notice of registration in connection with its use
of registered Trademarks, prior marking practices in connection with the use of Patents, and
appropriate notice of Copyright in connection with the publication of material subject to
Copyrights and (x) maintain the level of quality of products sold and services rendered under any
Trademarks owned by such Pledgor at a level at least consistent with the quality of such products
and services as of the date hereof, and adequately control the quality of goods an services offered
by any licensces of its Trademarks to maintain such standards.

          SECTION 6.3. After-Acquired Property. If any Pledgor shall at any time after the date
hereof (i) obtain any ownership or other rights in and/or to any additional Intellectual Property
(including trademark applications for which evidence of the use of such trademarks in interstate
commerce has been submitted to and accepted by the United States Patent and Trademark Office
pursuant

 

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to 15 U.S.C. Section 1060(a) (or a successor provision)) or (ii) become entitled to the benefit of
any additional Intellectual Property or any renewal or extension thereof, including any reissue,
division, continuation, or continuation-in-part of any Intellectual Property Collateral, or any
improvement on any Intellectual Property Collateral, the provisions of this Agreement shall
automatically apply thereto and any such item described in the preceding clause (i) or (ii) (other
than any Excluded Property) shall automatically constitute Intellectual Property Collateral as if
such would have constituted Intellectual Property Collateral at the time of execution hereof and
such Intellectual Property (other than any Excluded Property) shall be subject to the Lien and
security interest created by this Agreement without further action by any party. Each Pledgor shall
promptly provide to the Collateral Agent written notice of any of the foregoing Intellectual
Property owned by such Pledgor which is the subject of a registration or application and confirm
the attachment of the Lien and security interest created by this Agreement to any rights described
in clauses (i) and (ii) above by execution and delivery, within 90 days (or, in the case of
Copyrights, 30 day, or, in each case, such longer period as may be determined by the Collateral
Agent in its sole discretion) of the acquisition by such Pledgor of such Intellectual Property, of
an instrument in form and substance reasonably acceptable to the Collateral Agent and the filing of
any instruments or statements as shall be reasonably necessary to create, record, preserve, protect
or perfect the Collateral Agent’s lien and security interest in such Intellectual Property.
Further, each Pledgor authorizes the Collateral Agent to modify this Agreement by amending
Schedules 12(a) and 12(b) to the Perfection Certificate to include any Intellectual
Property Collateral of such Pledgor acquired or arising after the date hereof.

          SECTION 6.4. Litigation. Unless there shall occur and be continuing any Event of
Default, each Pledgor shall have the right to commence and prosecute in its own name, as the party
in interest, for its own benefit and at the sole cost and expense of the Pledgors, such
applications for protection of the Intellectual Property Collateral and suits, proceedings or
other actions to prevent the infringement, counterfeiting, unfair competition, dilution,
diminution in value or other damage as are necessary to protect the Intellectual Property
Collateral. Upon the occurrence and during the continuance of any Event of Default, the Collateral
Agent shall have the right but shall in no way be obligated to file applications for protection of
the Intellectual Property Collateral and/or bring suit in the name of any Pledgor, the Collateral
Agent or the Secured Parties to enforce the Intellectual Property Collateral and any license
thereunder. In the event of such suit, each Pledgor shall, at the reasonable request of the
Collateral Agent, do any and all lawful acts and execute any and all documents requested by the
Collateral Agent in aid of such enforcement and the Pledgors shall promptly reimburse and
indemnify the Collateral Agent for all costs and expenses incurred by the Collateral Agent in the
exercise of its rights under this Section 6.4 in accordance with Section 11.03 of the
Credit Agreement. In the event that the Collateral Agent shall elect not to bring suit to enforce
the Intellectual Property Collateral, each Pledgor agrees, at the reasonable request of the
Collateral Agent, to take all commercially reasonable actions necessary, whether by suit,
proceeding or other action, to prevent the infringement, counterfeiting, unfair competition,
dilution, diminution in value of or other damage to any of the Intellectual Property Collateral by
any person.

ARTICLE VII

CERTAIN PROVISIONS CONCERNING RECEIVABLES

          SECTION 7.1. Maintenance of Records. Each Pledgor shall keep and maintain at
its own cost and expense complete records of each Receivable, in a manner consistent with prudent
business

 

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practice, including records of all payments received, all credits granted thereon, all merchandise
returned and all other documentation relating thereto. Each Pledgor shall, at such Pledgor’s sole
cost and expense, upon the Collateral Agent’s demand made at any time after the occurrence and
during the continuance of any Event of Default, deliver all tangible evidence of Receivables,
including all documents evidencing Receivables and any books and records relating thereto to the
Collateral Agent or to its representatives (copies of which evidence and books and records may be
retained by such Pledgor). Upon the occurrence and during the continuance of any Event of Default,
the Collateral Agent may transfer a full and complete copy of any Pledgor’s books, records, credit
information, reports, memoranda and all other writings relating to the Receivables to and for the
use by any person that has acquired or is contemplating acquisition of an interest in the
Receivables or the Collateral Agent’s security interest therein without the consent of any Pledgor.

          SECTION 7.2. Modification of Terms, etc. No Pledgor shall rescind or cancel any
obligations evidenced by any Receivable or modify any term thereof or make any adjustment,
discount, credit, rebate or reduction with respect thereto except in the ordinary course of
business consistent with prudent business practice, or extend or renew any such obligations except
in the ordinary course of business consistent with prudent business practice or compromise or
settle any dispute, claim, suit or legal proceeding relating thereto or sell any Receivable or
interest therein except in the ordinary course of business consistent with prudent business
practice without the prior written consent of the Collateral Agent. Each Pledgor shall timely
fulfill all obligations on its part to be fulfilled under or in connection with the Receivables
except as may be otherwise consistent with the exercise of reasonable business judgment in the
ordinary course of business. If (i) any material adjustment, discount, credit or agreement to make
a rebate or to otherwise reduce the amount owing on a material Receivable exists or (ii) if, to
the knowledge of any Pledgor, any material dispute, setoff, claim, counterclaim or defense exists
or has been asserted or threatened with respect to a material Receivable, the Pledgors will
promptly disclose such fact to the Collateral Agent in writing.

          SECTION 7.3. Collection. Each Pledgor shall cause to be collected from the Account
Debtor of each of the Receivables, as and when due in the ordinary course of business and
consistent with prudent business practice (including Receivables that are delinquent, such
Receivables to be collected in accordance with generally accepted commercial collection
procedures), any and all amounts owing under or on account of such Receivable, and apply forthwith
upon receipt thereof all such amounts as are so collected to the outstanding balance of such
Receivable, except that any Pledgor may, with respect to a Receivable, allow in the ordinary
course of business (i) a refund or credit due as a result of returned or damaged or defective
merchandise and (ii) such extensions of time to pay amounts due in respect of Receivables and such
other modifications of payment terms or settlements in respect of Receivables as shall be
commercially reasonable in the circumstances, all in accordance with such Pledgor’s ordinary
course of business consistent with its collection practices as in effect from time to time. The
costs and expenses (including attorneys’ fees) of collection, in any case, whether incurred by any
Pledgor, the Collateral Agent or any Secured Party, shall be paid by the Pledgors.

 

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ARTICLE VIII

TRANSFERS

          SECTION 8.1. Transfers of Pledged Collateral. No Pledgor shall sell, convey, assign or
otherwise dispose of, or grant any option with respect to, any of the Pledged Collateral pledged by
it hereunder except as not prohibited by the Credit Agreement.

ARTICLE IX

REMEDIES

          SECTION 9.1. Remedies. Upon the occurrence and during the continuance of any Event of
Default, the Collateral Agent may from time to time (alternatively, successively or concurrently
on any one or more occasions) exercise in respect of the Pledged Collateral, in addition to the
other rights and remedies provided for herein or otherwise available to it, the following
remedies:

          (i) Personally, or by agents or attorneys, immediately take possession of the Pledged
Collateral or any part thereof, from any Pledgor or any other person who then has possession of
any part thereof with or without notice or process of law, and for that purpose may enter upon any
Pledgor’s premises where any of the Pledged Collateral is located, remove such Pledged Collateral,
remain present at such premises to receive copies of all communications and remittances relating
to the Pledged Collateral and use in connection with such removal and possession any and all
services, supplies, aids and other facilities of any Pledgor;

          (ii) Demand, sue for, collect or receive any money or property at any time payable or
receivable in respect of the Pledged Collateral including instructing the obligor or obligors on
any agreement, instrument or other obligation constituting part of the Pledged Collateral to make
any payment required by the terms of such agreement, instrument or other obligation directly to
the Collateral Agent, and in connection with any of the foregoing, compromise, settle, extend the
time for payment and make other modifications with respect thereto; provided, however,
that in the event that any such payments are made directly to any Pledgor, prior to receipt by any
such obligor of such instruction, such Pledgor shall segregate all amounts received pursuant
thereto in trust for the benefit of the Collateral Agent and shall promptly (but in no event later
than one Business Day after receipt thereof) pay such amounts to the Collateral Agent;

          (iii) Sell, assign, grant a license to use or otherwise liquidate, or direct any Pledgor to
sell, assign, grant a license to use or otherwise liquidate and dispose of, any and all
investments made in whole or in part with the Pledged Collateral or any part thereof, and take
possession of the proceeds of any such sale, assignment, license, liquidation or disposition;

          (iv) Take possession of the Pledged Collateral or any part thereof, by directing any Pledgor
in writing to deliver the same to the Collateral Agent at any place or places so designated by the
Collateral Agent, in which event such Pledgor shall at its own expense: (A) forthwith cause the
same to be moved to the place or places designated by the Collateral Agent and therewith delivered
to the Collateral Agent, (B) store and keep any Pledged Collateral so delivered to the Collateral
Agent at such place or places pending further action by the Collateral Agent and (C) while the
Pledged Collateral shall

 

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be so stored and kept, provide such security and maintenance services as shall be necessary to
protect the same and to preserve and maintain them in good condition. Each Pledgor’s obligation to
deliver the Pledged Collateral as contemplated in this Section 9.1(iv) is of the essence
hereof. Upon application to a court of equity having jurisdiction, the Collateral Agent shall be
entitled to a decree requiring specific performance by any Pledgor of such obligation;

          (v) Withdraw all moneys, instruments, securities and other property in any bank, financial
securities, deposit or other account of any Pledgor constituting Pledged Collateral for
application to the Secured Obligations as provided in Article X hereof;

          (vi) Retain and apply the Distributions to the Secured Obligations as provided in Article
X hereof;

          (vii) Exercise any and all rights as beneficial and legal owner of the Pledged Collateral,
including perfecting assignment of and exercising any and all voting, consensual and other rights
and powers with respect to any Pledged Collateral;

          (viii) In the Collateral Agent’s own name, in the name of a nominee of the Collateral Agent,
or in the name of any Pledgor communicate (by mail, telephone, facsimile or otherwise) with the
Account Debtors and other obligors in respect of Receivables of such Pledgor and parties to
contracts with such Pledgor, to verify with such persons, to the Collateral Agent’s satisfaction,
the existence, amount, terms of, and any other matter relating to, Accounts, Chattel Paper,
Payment Intangibles, General Intangibles, Instruments and other Receivables that are Pledged
Collateral; and

          (ix) Exercise all the rights and remedies of a secured party on default under the UCC, and
the Collateral Agent may also in its sole discretion, without notice except as specified in
Section 9.2 hereof, sell, assign or grant a license to use the Pledged Collateral or any
part thereof in one or more parcels at public or private sale, at any exchange, broker’s board or
at any of the Collateral Agent’s offices or elsewhere, for cash, on credit or for future delivery,
and at such price or prices and upon such other terms as the Collateral Agent may deem
commercially reasonable. The Collateral Agent or any other Secured Party or any of their
respective Affiliates may be the purchaser, licensee, assignee or recipient of the Pledged
Collateral or any part thereof at any such sale and shall be entitled, for the purpose of bidding
and making settlement or payment of the purchase price for all or any portion of the Pledged
Collateral sold, assigned or licensed at such sale, to use and apply any of the Secured
Obligations owed to such person as a credit on account of the purchase price of the Pledged
Collateral or any part thereof payable by such person at such sale. Each purchaser, assignee,
licensee or recipient at any such sale shall acquire the property sold, assigned or licensed
absolutely free from any claim or right on the part of any Pledgor, and each Pledgor hereby
waives, to the fullest extent permitted by law, all rights of redemption, stay and/or appraisal
which it now has or may at any time in the future have under any rule of law or statute now
existing or hereafter enacted. The Collateral Agent shall not be obligated to make any sale of the
Pledged Collateral or any part thereof regardless of notice of sale having been given. The
Collateral Agent may adjourn any public or private sale from time to time by announcement at the
time and place fixed therefor, and such sale may, without further notice, be made at the time and
place to which it was so adjourned. Each Pledgor hereby waives, to the fullest extent permitted by
law, any claims against the Collateral Agent arising by reason of the fact that the price at which
the Pledged Collateral or any part thereof may have been sold, assigned or licensed at such a
private sale was less than the price which might have been obtained at a public sale, even if the
Collateral Agent accepts the first offer received and does not offer such Pledged Collateral to
more than one offeree.

 

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          SECTION
9.2. Notice of Sale. Each Pledgor acknowledges and agrees that, to the extent
notice of sale or other disposition of the Pledged Collateral or any part thereof shall be required
by law, 10 days’ prior notice to such Pledgor of the time and place of any public sale or of the
time after which any private sale or other intended disposition is to take place shall be
commercially reasonable notification of such matters. No notification need be given to any Pledgor
if it has signed, after the occurrence of an Event of Default, a statement renouncing or modifying
any right to notification of sale or other intended disposition.

          SECTION 9.3. Waiver of Notice and Claims. Each Pledgor hereby waives, to the fullest
extent permitted by applicable law, notice or judicial hearing in connection with the Collateral
Agent’s taking possession or the Collateral Agent’s disposition of the Pledged Collateral or any
part thereof, including any and all prior notice and hearing for any prejudgment remedy or
remedies and any such right which such Pledgor would otherwise have under law, and each Pledgor
hereby further waives, to the fullest extent permitted by applicable law: (i) all damages
occasioned by such taking of possession, (ii) all other requirements as to the time, place and
terms of sale or other requirements with respect to the enforcement of the Collateral Agent’s
rights hereunder and (iii) all rights of redemption, appraisal, valuation, stay, extension or
moratorium now or hereafter in force under any applicable law. The Collateral Agent shall not be
liable for any incorrect or improper payment made pursuant to this
Article IX in the
absence of gross negligence or willful misconduct on the part of the Collateral Agent. Any sale
of, or the grant of options to purchase, or any other realization upon, any Pledged Collateral
shall operate to divest all right, title, interest, claim and demand, either at law or in equity,
of the applicable Pledgor therein and thereto, and shall be a perpetual bar both at law and in
equity against such Pledgor and against any and all persons claiming or attempting to claim the
Pledged Collateral so sold, optioned or realized upon, or any part thereof, from, through or under
such Pledgor.

          SECTION 9.4. Certain Sales of Pledged Collateral.

          (a) Each Pledgor recognizes that, by reason of certain prohibitions contained in law,
rules, regulations or orders of any Governmental Authority, the Collateral Agent may be
compelled, with
respect to any sale of all or any part of the Pledged Collateral, to limit purchasers to those
who meet the
requirements of such Governmental Authority. Each Pledgor acknowledges that any such sales may
be at
prices and on terms less favorable to the Collateral Agent than those obtainable through a
public sale
without such restrictions, and, notwithstanding such circumstances, agrees that any such
restricted sale
shall be deemed to have been made in a commercially reasonable manner and that, except as may
be
required by applicable law, the Collateral Agent shall have no obligation to engage in public
sales.

          (b) Each Pledgor recognizes that, by reason of certain prohibitions contained in the
Securities Act, and applicable state securities laws, the Collateral Agent may be compelled,
with respect
to any sale of all or any part of the Securities Collateral and Investment Property, to limit
purchasers to
persons who will agree, among other things, to acquire such Securities Collateral or
Investment Property
for their own account, for investment and not with a view to the distribution or resale
thereof. Each
Pledgor acknowledges that any such private sales may be at prices and on terms less favorable
to the
Collateral Agent than those obtainable through a public sale without such restrictions
(including a public
offering made pursuant to a registration statement under the Securities Act), and,
notwithstanding such
circumstances, agrees that any such private sale shall be deemed to have been made in a
commercially
reasonable manner and that the Collateral Agent shall have no obligation to engage in public
sales and no
obligation to delay the sale of any Securities Collateral or Investment Property for the
period of time
necessary to permit the issuer thereof to register it for a form of public sale requiring
registration under
the Securities Act or under applicable state securities laws, even if such issuer would agree
to do so.

 

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          (c) Notwithstanding the foregoing, each Pledgor shall, upon the occurrence and
during the continuance of any Event of Default, at the reasonable request of the Collateral
Agent, for the
benefit of the Collateral Agent, cause any registration, qualification under or compliance
with any Federal
or state securities law or laws to be effected with respect to all or any part of the
Securities Collateral as
soon as practicable and at the sole cost and expense of the Pledgors. Each Pledgor will use
its
commercially reasonable efforts to cause such registration to be effected (and be kept
effective) and will
use its commercially reasonable efforts to cause such qualification and compliance to be
effected (and be
kept effective) as may be so requested and as would permit or facilitate the sale and
distribution of such
Securities Collateral including registration under the Securities Act (or any similar statute
then in effect),
appropriate qualifications under applicable blue sky or other state securities laws and
appropriate
compliance with all other requirements of any Governmental Authority. Each Pledgor shall use
its
commercially reasonable efforts to cause the Collateral Agent to be kept advised in writing as
to the
progress of each such registration, qualification or compliance and as to the completion
thereof, shall
furnish to the Collateral Agent such number of prospectuses, offering circulars or other
documents
incident thereto as the Collateral Agent from time to time may request, and shall indemnify
and shall
cause the issuer of the Securities Collateral to indemnify the Collateral Agent and all others
participating
in the distribution of such Securities Collateral against all claims, losses, damages and
liabilities caused
by any untrue statement (or alleged untrue statement) of a material fact contained therein (or
in any
related registration statement, notification or the like) or by any omission (or alleged
omission) to state
therein (or in any related registration statement, notification or the like) a material fact
required to be
stated therein or necessary to make the statements therein not misleading.

          (d) If the Collateral Agent determines to exercise its right to sell any or all of the
Securities Collateral or Investment Property, upon written request, the applicable Pledgor
shall from time
to time furnish to the Collateral Agent all such information as the Collateral Agent may
request in order to
determine the number of securities included in the Securities Collateral or Investment
Property which
may be sold by the Collateral Agent as exempt transactions under the Securities Act and the
rules of the
Securities and Exchange Commission thereunder, as the same are from time to time in effect.

          (e) Each Pledgor further agrees that a breach of any of the covenants contained in
this Section 9.4 will cause irreparable injury to the Collateral Agent and the other
Secured Parties, that the
Collateral Agent and the other Secured Parties have no adequate remedy at law in respect of
such breach
and, as a consequence, that each and every covenant contained in this Section 9.4
shall be specifically
enforceable against such Pledgor, and such Pledgor hereby waives and agrees not to assert any
defenses
against an action for specific performance of such covenants except for a defense that no
Event of Default
has occurred and is continuing.

          SECTION
9.5. No Waiver; Cumulative Remedies.

          (a) No failure on the part of the Collateral Agent to exercise, no course of dealing
with respect to, and no delay on the part of the Collateral Agent 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, privilege or remedy hereunder preclude any other or further exercise thereof or the
exercise of any
other right, power, privilege or remedy; nor shall the Collateral Agent be required to look
first to, enforce
or exhaust any other security, collateral or guaranties. All rights and remedies herein
provided are
cumulative and are not exclusive of any rights or remedies provided by law or otherwise
available.

          (b) In the event that the Collateral Agent shall have instituted any proceeding to
enforce any right, power, privilege or remedy under this Agreement or any other Loan Document
by

 

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foreclosure, sale, entry or otherwise, and such proceeding shall have been discontinued or
abandoned for any reason or shall have been determined adversely to the Collateral Agent, then and
in every such case, the Pledgors, the Collateral Agent and each other Secured Party shall be
restored to their respective former positions and rights hereunder with respect to the Pledged
Collateral, and all rights, remedies, privileges and powers of the Collateral Agent and the other
Secured Parties shall continue as if no such proceeding had been instituted.

          SECTION 9.6. Certain Additional Actions Regarding Intellectual Property. If any Event
of Default shall have occurred and be continuing, upon the written demand of the Collateral Agent,
each Pledgor shall execute and deliver to the Collateral Agent an assignment or assignments of
such Pledgor’s rights in the Intellectual Property Collateral, in recordable form with respect to
those items of the Intellectual Property Collateral consisting of registered Patents, Trademarks
and/or Copyrights (or applications therefor) and such other documents as are necessary or
appropriate to carry out the intent and purposes hereof. Within five Business Days of written
notice thereafter from the Collateral Agent, each Pledgor shall make available to the Collateral
Agent, to the extent within such Pledgor’s power and authority, such personnel in such Pledgor’s
employ on the date of the Event of Default as the Collateral Agent may reasonably designate to
permit such Pledgor to continue, directly or indirectly, to produce, advertise and sell the
products and services sold by such Pledgor under the registered Patents, Trademarks and/or
Copyrights of such Pledgor, and such persons shall be available to perform their prior functions
on the Collateral Agent’s behalf.

ARTICLE X

APPLICATION OF PROCEEDS

          SECTION 10.1. Application of Proceeds. Subject to the terms of the Intercreditor
Agreement, the proceeds received by the Collateral Agent in respect of any sale of, collection
from or other realization upon all or any part of the Pledged Collateral pursuant to the exercise
by the Collateral Agent of its remedies shall be applied, together with any other sums then held
by the Collateral Agent pursuant to this Agreement, in accordance with the Credit Agreement.

ARTICLE XI

MISCELLANEOUS

          SECTION 11.1. Concerning Collateral Agent.

          (a) The Collateral Agent has been appointed as collateral agent pursuant to the Credit
Agreement. The actions of the Collateral Agent hereunder are subject to the provisions of the
Credit Agreement. The Collateral Agent shall have the right hereunder to make demands, to give
notices, to exercise or refrain from exercising any rights, and to take or refrain from taking
action (including the release or substitution of the Pledged Collateral), in accordance with this
Agreement and the Credit Agreement. The Collateral Agent may employ agents and attorneys-in-fact
in connection herewith and shall not be liable for the negligence or misconduct of any such agents
or attorneys-in-fact selected by it in good faith. The Collateral Agent may resign and a successor
Collateral Agent may be appointed in the manner provided in the Credit Agreement. Upon the
acceptance of any appointment as the Collateral

 

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Agent by a successor Collateral Agent, that successor Collateral Agent shall thereupon succeed to
and become vested with all the rights, powers, privileges and duties of the retiring Collateral
Agent under this Agreement, and the retiring Collateral Agent shall thereupon be discharged from
its duties and obligations under this Agreement. After any retiring Collateral Agent’s resignation,
the provisions hereof shall inure to its benefit as to any actions taken or omitted to be taken by
it under this Agreement while it was the Collateral Agent.

          (b) The Collateral Agent shall be deemed to have exercised reasonable care in the
custody and preservation of the Pledged Collateral in its possession if such Pledged
Collateral is accorded
treatment substantially equivalent to that which the Collateral Agent, in its individual
capacity, accords its
own property consisting of similar instruments or interests, it being understood that neither
the Collateral
Agent nor any of the Secured Parties shall have responsibility for (i) ascertaining or taking
action with
respect to calls, conversions, exchanges, maturities, tenders or other matters relating to any
Securities
Collateral, whether or not the Collateral Agent or any other Secured Party has or is deemed to
have
knowledge of such matters or (ii) taking any necessary steps to preserve rights against any
person with
respect to any Pledged Collateral.

          (c) The Collateral Agent shall be entitled to rely upon any written notice, statement,
certificate, order or other document or any telephone message believed by it to be genuine and
correct and
to have been signed, sent or made by the proper person, and, with respect to all matters
pertaining to this
Agreement and its duties hereunder, upon advice of counsel selected by it.

          (d) Except as otherwise provided in Sections 11.17 and 11.18 hereof, if any
item of
Pledged Collateral also constitutes collateral granted to the Collateral Agent under any other
deed of trust,
mortgage, security agreement, pledge or instrument of any type, in the event of any conflict
between the
provisions hereof and the provisions of such other deed of trust, mortgage, security
agreement, pledge or
instrument of any type in respect of such collateral, the Collateral Agent, in its sole
discretion, shall select
which provision or provisions shall control.

          (e) The Collateral Agent may rely on advice of counsel as to whether any or all UCC
financing statements of the Pledgors need to be amended as a result of any of the changes
described in
Section 5.13 of the Credit Agreement. If any Pledgor fails to provide information to the
Collateral Agent
about such changes on a timely basis, the Collateral Agent shall not be liable or responsible
to any party
for any failure to maintain a perfected security interest in such Pledgor’s property
constituting Pledged
Collateral, for which the Collateral Agent needed to have information relating to such
changes. The
Collateral Agent shall have no duty to inquire about such changes if any Pledgor does not
inform the
Collateral Agent of such changes, the parties acknowledging and agreeing that it would not be
feasible or
practical for the Collateral Agent to search for information on such changes if such
information is not
provided by any Pledgor.

          SECTION
11.2. Collateral Agent May Perform; Collateral Agent Appointed
Attorney-in-Fact. If any Pledgor shall fail to perform any covenants contained in this
Agreement (including such Pledgor’s covenants to (i) pay the premiums in respect of all required
insurance policies hereunder, (ii) pay and discharge any taxes, assessments and special
assessments, levies, fees and governmental charges imposed upon or assessed against, and
landlords’, carriers’, mechanics’, workmen’s, repairmen’s, laborers’, materialmen’s, suppliers’
and warehousemen’s Liens and other claims arising by operation of law against, all or any portion
of the Pledged Collateral, (iii) make repairs, (iv) discharge Liens or (v) pay or perform any
obligations of such Pledgor under any Pledged Collateral) or if any representation or warranty on
the part of any Pledgor contained herein shall be breached, the

 

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Collateral Agent may (but shall not be obligated to) do the same or cause it to be done or remedy
any such breach, and may expend funds for such purpose;
provided,  however, that the
Collateral Agent shall in no event be bound to inquire into the validity of any tax, Lien,
imposition or other obligation which such Pledgor fails to pay or perform as and when required
hereby and which such Pledgor does not contest in accordance with the provisions of the Credit
Agreement. Any and all amounts so expended by the Collateral Agent shall be paid by the Pledgors in
accordance with the provisions of Section 11.03 of the Credit Agreement. Neither the provisions of
this Section 11.2 nor any action taken by the Collateral Agent pursuant to the provisions
of this Section 11.2 shall prevent any such failure to observe any covenant contained in
this Agreement nor any breach of representation or warranty from constituting an Event of Default.
Each Pledgor hereby appoints the Collateral Agent its attorney-in-fact, with full power and
authority in the place and stead of such Pledgor and in the name of such Pledgor, or otherwise,
from time to time in the Collateral Agent’s discretion to take any action and to execute any
instrument consistent with the terms of the Credit Agreement, this Agreement and the other
Security Documents which the Collateral Agent may deem necessary or advisable to accomplish the
purposes hereof (but the Collateral Agent shall not be obligated to and shall have no liability to
such Pledgor or any third party for failure to so do or take action). The foregoing grant of
authority is a power of attorney coupled with an interest and such appointment shall be irrevocable
for the term hereof. Each Pledgor hereby ratifies all that such attorney shall lawfully do or cause
to be done by virtue hereof.

          SECTION
11.3. Continuing Security Interest; Assignment. This Agreement shall create a
continuing security interest in the Pledged Collateral and shall (i) be binding upon the Pledgors,
their respective successors and assigns and (ii) inure, together with the rights and remedies of
the Collateral Agent hereunder, to the benefit of the Collateral Agent and the other Secured
Parties and each of their respective successors, transferees and assigns. No other persons
(including any other creditor of any Pledgor) shall have any interest herein or any right or
benefit with respect hereto. Without limiting the generality of the foregoing clause (ii), any
Secured Party may assign or otherwise transfer any indebtedness held by it secured by this
Agreement to any other person, and such other person shall thereupon become vested with all the
benefits in respect thereof granted to such Secured Party, herein or otherwise, subject however,
to the provisions of the Credit Agreement and, in the case of a Secured Party that is a party to a
Hedging Agreement, such Hedging Agreement. Each of the Pledgors agrees that its obligations
hereunder and the security interest created hereunder shall continue to be effective or be
reinstated, as applicable, if at any time payment, or any part thereof, of all or any part of the
Secured Obligations is rescinded or must otherwise be restored by the Secured Party upon the
bankruptcy or reorganization of any Pledgor or otherwise.

          SECTION 11.4. Termination; Release. When all the Secured Obligations have been paid
in full and the Commitments of the Lenders to make any Loan under the Credit Agreement shall have
expired or been sooner terminated in accordance with the provisions of the Credit Agreement, this
Agreement shall terminate. Upon termination of this Agreement the Pledged Collateral shall be
released from the Lien of this Agreement. Upon such release or any release of Pledged Collateral
or any part thereof in accordance with the provisions of the Credit Agreement, the Collateral
Agent shall, upon the request and at the sole cost and expense of the Pledgors, assign, transfer
and deliver to the relevant Pledgor, against receipt and without recourse to or warranty by the
Collateral Agent except as to the fact that the Collateral Agent has not encumbered the released
assets, such of the Pledged Collateral or any part thereof to be released (in the case of a
release) as may be in possession of the Collateral Agent and as shall not have been sold or
otherwise applied pursuant to the terms hereof, and, with respect to any other Pledged Collateral,
proper documents and instruments (including any necessary UCC-3 termination financing statements
or releases) acknowledging the termination hereof or the release of such Pledged Collateral, as
the case may be.

 

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          SECTION 11.5. Modification in Writing. No amendment, modification, supplement,
termination or waiver of or to any provision hereof, nor consent to any departure by any Pledgor
therefrom, shall be effective unless the same shall be made in accordance with the terms of the
Credit Agreement and unless in writing and signed by the Collateral Agent. Any amendment,
modification or supplement of or to any provision hereof, any waiver of any provision hereof and
any consent to any departure by any Pledgor from the terms of any provision hereof in each case
shall be effective only in the specific instance and for the specific purpose for which made or
given. Except where notice is specifically required by this Agreement or any other document
evidencing the Secured Obligations, no notice to or demand on any Pledgor in any case shall entitle
any Pledgor to any other or further notice or demand in similar or other circumstances.

          SECTION 11.6. Notices. Unless otherwise provided herein or in the Credit Agreement,
any notice or other communication herein required or permitted to be given shall be given in the
manner and become effective as set forth in the Credit Agreement, as to any Pledgor, addressed to
it at the address of the Administrative Borrower set forth in the Credit Agreement and as to the
Collateral Agent, addressed to it at the address set forth in the Credit Agreement, or in each
case at such other address as shall be designated by such party in a written notice to the other
party complying as to delivery with the terms of this Section 11.6.

          SECTION
11.7. Governing Law, Consent to Jurisdiction and Service of Process: Waiver of
Jury Trial. Sections 11.09 and 11.10 of the Credit Agreement are incorporated herein, mutatis
mutandis, as if a part hereof.

          SECTION 11.8. Severability of Provisions. Any provision hereof which is invalid,
illegal or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the
extent of such invalidity, illegality or unenforceability without invalidating the remaining
provisions hereof or affecting the validity, legality or enforceability of such provision in any
other jurisdiction.

          SECTION 11.9. Execution in Counterparts. This Agreement and any amendments, waivers,
consents or supplements hereto may be executed in any number of counterparts and by different
parties hereto in separate counterparts, each of which when so executed and delivered shall be
deemed to be an original, but all such counterparts together shall constitute one and the same
agreement. Delivery of an executed counterpart of a signature page of this Agreement by telecopier
shall be effective as delivery of a manually executed counterpart of this Agreement.

          SECTION 11.10. Business Days. In the event any time period or any date provided in
this Agreement ends or falls on a day other than a Business Day, then such time period shall be
deemed to end and such date shall be deemed to fall on the next succeeding Business Day, and
performance herein may be made on such Business Day, with the same force and effect as if made on
such other day.

          SECTION 11.11. No Credit for Payment of Taxes or Imposition. Such Pledgor shall not
be entitled to any credit against the principal, premium, if any, or interest payable under the
Credit Agreement, and such Pledgor shall not be entitled to any credit against any other sums
which may become payable under the terms thereof or hereof, by reason of the payment of any Tax on
the Pledged Collateral or any part thereof.

          SECTION 11.12. No Claims Against Collateral Agent. Nothing contained in this
Agreement shall constitute any consent or request by the Collateral Agent, express or implied, for
the performance of any labor or services or the furnishing of any materials or other property in
respect of the

 

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Pledged Collateral or any part thereof, nor as giving any Pledgor any right, power or authority to
contract for or permit the performance of any labor or services or the furnishing of any materials
or other property in such fashion as would permit the making of any claim against the Collateral
Agent in respect thereof or any claim that any Lien based on the performance of such labor or
services or the furnishing of any such materials or other property is prior to the Lien hereof.

          SECTION 11.13. No Release. Nothing set forth in this Agreement or any other Loan
Document, nor the exercise by the Collateral Agent of any of the rights or remedies hereunder,
shall relieve any Pledgor from the performance of any term, covenant, condition or agreement on
such Pledgor’s part to be performed or observed under or in respect of any of the Pledged
Collateral or from any liability to any person under or in respect of any of the Pledged
Collateral or shall impose any obligation on the Collateral Agent or any other Secured Party to
perform or observe any such term, covenant, condition or agreement on such Pledgor’s part to be so
performed or observed or shall impose any liability on the Collateral Agent or any other Secured
Party for any act or omission on the part of such Pledgor relating thereto or for any breach of
any representation or warranty on the part of such Pledgor contained in this Agreement, the Credit
Agreement or the other Lean Documents, or under or in respect of the Pledged Collateral or made in
connection herewith or therewith. Anything herein to the contrary notwithstanding, neither the
Collateral Agent nor any other Secured Party shall have any obligation or liability under any
contracts, agreements and other documents included in the Pledged Collateral by reason of this
Agreement, nor shall the Collateral Agent or any other Secured Party be obligated to perform any
of the obligations or duties of any Pledgor thereunder or to take any action to collect or enforce
any such contract, agreement or other document included in the Pledged Collateral hereunder. The
obligations of each Pledgor contained in this Section 11.13 shall survive the termination
hereof and the discharge of such Pledgor’s other obligations under this Agreement, the Credit
Agreement and the other Loan Documents.

          SECTION 11.14. Obligations Absolute. All obligations of each Pledgor hereunder shall
be absolute and unconditional irrespective of:

     (i) any bankruptcy, insolvency, reorganization, arrangement, readjustment,
composition, liquidation or the like of any other Pledgor;

     (ii) any lack of validity or enforceability of the Credit Agreement, any Hedging
Agreement or any other Loan Document, or any other agreement or instrument relating
thereto;

     (iii) any change in the time, manner or place of payment of, or in any other term of,
all or any of the Secured Obligations, or any other amendment or waiver of or any consent
to any departure from the Credit Agreement, any Hedging Agreement or any other Loan
Document or any other agreement or instrument relating thereto;

     (iv) any pledge, exchange, release or non-perfection of any other collateral, or any
release or amendment or waiver of or consent to any departure from any guarantee, for all
or any of the Secured Obligations;

     (v) any exercise, non-exercise or waiver of any right, remedy, power or privilege
under or in respect hereof, the Credit Agreement, any Hedging Agreement or any other Loan
Document; or

 

-34-

     (vi) any other circumstances which might otherwise constitute a defense
available to, or a discharge of, any Pledgor.

          SECTION 11.15. INTERCREDITQR AGREEMENT GOVERNS.
NOTWITHSTANDING ANYTHING HEREIN TO THE CONTRARY, THE LIEN AND SECURITY INTEREST GRANTED TO THE
COLLATERAL AGENT, FOR THE BENEFIT OF THE SECURED PARTIES, PURSUANT TO THIS AGREEMENT AND THE
EXERCISE OF ANY RIGHT OR REMEDY BY THE COLLATERAL AGENT AND THE OTHER SECURED PARTIES HEREUNDER ARE
SUBJECT TO THE PROVISIONS OF THE INTERCREDITOR AGREEMENT. IN THE EVENT OF ANY CONFLICT OR
INCONSISTENCY BETWEEN THE PROVISIONS OF THE INTERCREDITOR AGREEMENT AND THIS AGREEMENT, THE
PROVISIONS OF THE INTERCREDITOR AGREEMENT SHALL GOVERN AND CONTROL.

          SECTION 11.16. Delivery of Collateral. Prior to the Discharge of Revolving Credit
Obligations, to the extent any Pledgor is required hereunder to deliver Pledged Collateral that is
Revolving Credit Priority Collateral to the Collateral Agent for purposes of possession and
control and is unable to do so as a result of having previously delivered such Pledged Collateral
to any of the Revolving Credit Agents in accordance with the terms of the Revolving Credit
Security Documents, such Pledgor’s obligations hereunder with respect to such delivery shall be
deemed satisfied by the delivery to such Revolving Credit Agents, acting as a gratuitous bailee
and/or sub-agent of the Collateral Agent in accordance with the terms of the Intercreditor
Agreement.

          SECTION 11.17. Mortgages. In the case of a conflict between this Agreement and the
Mortgages with respect to Pledged Collateral that is real property (including Fixtures), the
Mortgages shall govern. In all other conflicts between this Agreement and the Mortgages, this
Agreement shall govern.

          SECTION 11.18. Conflicts.

     (a) In the case of any conflict between this Agreement and the Credit Agreement, the
provisions of the Credit Agreement shall govern.

     (b) In the case of a conflict between this Agreement and the Canadian Security
Agreement, solely with respect to the Canadian Borrower, the provisions of the Canadian
Security
Agreement shall govern.

[REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK.]

 

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

	 	 	 
	 

	 	NOVELIS INC., as a Pledgor
	 
	 	 
	 

	 	
	 
	 	 
	 

	 	NOVELIS CORPORATION, as a Pledgor
	 
	 	 
	 

	 	
	 
	 	 
	 

	 	NOVELIS PAE CORPORATION, as a Pledgor
	 
	 	 
	 

	 	
	 
	 	 
	 

	 	NOVELIS FINANCES USA LLC, as a Pledgor
	 
	 	 
	 

	 	
	 
	 	 
	 

	 	NOVELIS SOUTH AMERICA HOLDINGS LLC, as a Pledgor
	 
	 	 
	 

	 	

[Signature Page to Term Loan US Security Agreement]

 

 

	 	 	 
	 

	 	ALUMINUM UPSTREAM HOLDINGS LLC, as a Pledgor
	 
	 	 
	 

	 	

[Signature Page to Term Loan US Security Agreement]

 

 

	 	 	 	 	 	 	 
	 	 	UBS AG, STAMFORD BRANCH,	 	 
	 	 	as Collateral Agent	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Mary E. Evans	 	 
	 

	 	Name:
	 	 

Mary E. Evans
	 	 
	 

	 	Title:
	 	Associate Director	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ David B. Julie	 	 
	 

	 	Name:
	 	 

David B. Julie
	 	 
	 

	 	Title:
	 	Associate Director	 	 

[Signature Page to Term Loan US Security Agreement]

 

 

EXHIBIT 1

ISSUER’S ACKNOWLEDGMENT

          The undersigned hereby (i) acknowledges as of this                      day of                     , 20      , receipt
of the Security Agreement (as amended, amended and restated, supplemented or otherwise modified
from time to time, the “Security Agreement;” capitalized terms used but not otherwise defined
herein shall have the meanings assigned to such terms in the Security Agreement), dated as of July
6, 2007, made by NOVELIS INC., a corporation formed under the Canada Business Corporations Act,
NOVELIS CORPORATION, a Texas corporation, and the Guarantors party thereto, in favor of UBS AG,
STAMFORD BRANCH, as collateral agent (in such capacity and together with any successors in such
capacity, the “Collateral Agent”), (ii) agrees promptly to note on its books the security interests
granted to the Collateral Agent and confirmed under the Security Agreement, (iii) agrees that it
will comply with instructions of the Collateral Agent with respect to the applicable Securities
Collateral without further consent by the applicable Pledgor, (iv) agrees to notify the Collateral
Agent upon obtaining knowledge of any interest in favor of any person in the applicable Securities
Collateral that is adverse to the interest of the Collateral Agent therein and (v) waives any right
or requirement at any time hereafter to receive a copy of the Security Agreement in connection with
the registration of any Securities Collateral thereunder in the name of the Collateral Agent or its
nominee or the exercise of voting rights by the Collateral Agent or its nominee.

	 	 	 	 	 
	 	 	 
	 	[	]	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

 

 

EXHIBIT 2

SECURITIES PLEDGE AMENDMENT

     This Securities Pledge Amendment, dated as of [          ] (“Securities Pledge Amendment”),
is delivered by [          ] (the “Pledgor”), in favor of UBS AG, STAMFORD BRANCH, as collateral
agent (in such capacity and together with any successors in such capacity, the “Collateral
Agent”), pursuant to Section 5.1 of the Security Agreement (as amended, amended and
restated, supplemented or otherwise modified from time to time, the “Security Agreement;”
capitalized terms used but not otherwise defined herein shall have the meanings assigned to such
terms in the Security Agreement), dated as of July 6, 2007, made by NOVELIS INC., a corporation
formed under the Canada Business Corporations Act, NOVELIS CORPORATION, a Texas corporation, and
the Guarantors party thereto, in favor of UBS AG, STAMFORD BRANCH, as collateral agent (in such
capacity and together with any successors in such capacity, the “Collateral Agent”).

     As collateral security for the payment and performance in full of all the Secured
Obligations, the Pledgor hereby pledges and grants to the Collateral Agent for the benefit of the
Secured Parties, a lien on and security interest in all of the right, title and interest of the
Pledgor in, to and under the Pledged Securities and Intercompany Notes listed on this Securities
Pledge Amendment and all Proceeds of any and all of the foregoing (other than Excluded Property).

     The Pledgor hereby agrees that this Securities Pledge Amendment may be attached to the
Security Agreement and that the Pledged Securities and/or Intercompany Notes listed on this
Securities Pledge Amendment shall be deemed to be and shall become part of the Pledged Collateral
and shall secure all Secured Obligations.

     NOTWITHSTANDING ANYTHING HEREIN TO THE CONTRARY, THE LIEN AND SECURITY INTEREST GRANTED TO
THE COLLATERAL AGENT, FOR THE BENEFIT OF THE SECURED PARTIES, PURSUANT TO THIS SECURITIES PLEDGE
AMENDMENT AND THE EXERCISE OF ANY RIGHT OR REMEDY BY THE COLLATERAL AGENT AND THE OTHER SECURED
PARTIES HEREUNDER ARE SUBJECT TO THE PROVISIONS OF THE INTERCREDITOR AGREEMENT. IN THE EVENT OF
ANY CONFLICT OR INCONSISTENCY BETWEEN THE PROVISIONS OF THE INTERCREDITOR AGREEMENT AND THIS
SECURITIES PLEDGE AMENDMENT, THE PROVISIONS OF THE INTERCREDITOR AGREEMENT SHALL GOVERN AND
CONTROL.

PLEDGED SECURITIES

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	NUMBER	 	PERCENTAGE OF
	 	 	CLASS	 	 	 	 	 	 	 	 	 	OF	 	ALL ISSUED
	 	 	OF STOCK	 	 	 	 	 	 	 	 	 	SHARES	 	CAPITAL
	 	 	OR	 	PAR	 	CERTIFICATE	 	OR	 	OR OTHER EQUITY
	ISSUER	 	INTERESTS	 	VALUE	 	NO(S).	 	INTERESTS	 	INTERESTS OF ISSUER 

 

-2-

INTERCOMPANY NOTES

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	PRINCIPAL	 	DATE OF	 	INTEREST	 	MATURITY
	ISSUER	 	AMOUNT	 	ISSUANCE	 	RATE	 	DATE

	 	 	 	 	 	 	 	 	 
	 	 	 	 	[                                                                      ],	 	 
	 	 	 	 	as Pledgor	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Name:	 	 
	 

	 	 	 	 	 	Title:	 	 
	 
	 	 	 	 	 	 	 	 
	AGREED TO AND ACCEPTED:	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	UBS AG, STAMFORD BRANCH, 

as Collateral Agent	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	By:
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	By:
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 	 	 

 

 

EXHIBIT 3

JOINDER AGREEMENT

[Name of New Pledgor] 

[Address of New Pledgor]

[Date]

                                                            

                                                            

                                                            

                                                            

Ladies and Gentlemen:

          Reference is made to the Security Agreement (as amended, amended and restated, supplemented or
otherwise modified from time to time, the “Security Agreement;” capitalized terms used but
not otherwise defined herein shall have the meanings assigned to such terms in the Security
Agreement), dated as of July 6, 2007, made by NOVELIS INC., a corporation formed under the Canada
Business Corporations Act, NOVELIS CORPORATION, a Texas corporation, and the Guarantors party
thereto, in favor of UBS AG, STAMFORD BRANCH, as collateral agent (in such capacity and together
with any successors in such capacity, the “Collateral Agent”).

          This Joinder Agreement (“Joinder Agreement”) supplements the Security Agreement and
is delivered by the undersigned, [                    ] (the “New Pledgor”), pursuant to Section
3.5 of the Security Agreement. The New Pledgor hereby agrees to be bound as a Guarantor and as
a Pledgor party to the Security Agreement by all of the terms, covenants and conditions set forth
in the Security Agreement to the same extent that it would have been bound if it had been a
signatory to the Security Agreement on the date of the Security Agreement. The New Pledgor also
hereby agrees to be bound as a party by all of the terms, covenants and conditions applicable to
it set forth in Articles V, VI and VII of the Credit Agreement to the same extent that it would
have been bound if it had been a signatory to the Credit Agreement on the execution date of the
Credit Agreement. Without limiting the generality of the foregoing, the New Pledgor hereby grants
and pledges to the Collateral Agent, as collateral security for the full, prompt and complete
payment and performance when due (whether at stated maturity, by acceleration or otherwise) of the
Secured Obligations, a lien on and security interest in, all of its right, title and interest in,
to and under the Pledged Collateral and expressly assumes all obligations and liabilities of a
Guarantor and Pledgor thereunder. The New Pledgor hereby makes each of the representations and
warranties and agrees to each of the covenants applicable to the Pledgors contained in the
Security Agreement and the Credit Agreement.

 

-2-

          Annexed hereto are supplements to each of the schedules to the Security Agreement and the
Credit Agreement, as applicable, with respect to the New Pledgor. Such supplements shall be deemed
to be part of the Security Agreement or the Credit Agreement, as applicable.

          This Joinder Agreement and any amendments, waivers, consents or supplements hereto may be
executed in any number of counterparts and by different parties hereto in separate counterparts,
each of which when so executed and delivered shall be deemed to be an original, but all such
counterparts together shall constitute one and the same agreement.

          THIS JOINDER AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAW OF THE
STATE OF NEW YORK, WITHOUT REGARD TO CONFLICTS OF LAW PRINCIPLES THAT WOULD REQUIRE THE
APPLICATION OF THE LAWS OF ANOTHER JURISDICTION.

          NOTWITHSTANDING ANYTHING HEREIN TO THE CONTRARY, THE LIEN AND SECURITY INTEREST GRANTED TO
THE COLLATERAL AGENT, FOR THE BENEFIT OF THE SECURED PARTIES, PURSUANT TO THIS JOINDER AGREEMENT
AND THE EXERCISE OF ANY RIGHT OR REMEDY BY THE COLLATERAL AGENT AND THE OTHER SECURED PARTIES
HEREUNDER ARE SUBJECT TO THE PROVISIONS OF THE INTERCREDITOR AGREEMENT. IN THE EVENT OF ANY
CONFLICT OR INCONSISTENCY BETWEEN THE PROVISIONS OF THE INTERCREDITOR AGREEMENT AND THIS JOINDER
AGREEMENT, THE PROVISIONS OF THE INTERCREDITOR AGREEMENT SHALL GOVERN AND CONTROL.

[REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK.]

 

-3-

          IN WITNESS WHEREOF, the New Pledgor has caused this Joinder Agreement to be executed and
delivered by its duly authorized officer as of the date first above written.

	 	 	 	 	 	 	 	 	 
	 	 	 	 	[NEW PLEDGOR]	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Name:	 	 
	 

	 	 	 	 	 	Title:	 	 
	 
	 	 	 	 	 	 	 	 
	AGREED TO AND ACCEPTED:	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	UBS AG, STAMFORD BRANCH, 

as Collateral Agent	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	By:
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	By:
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	[Schedules to be attached]	 	 	 	 	 	 

 

 

EXHIBIT 4

COPYRIGHT SECURITY AGREEMENT

          COPYRIGHT SECURITY AGREEMENT, dated as of [                    ] ( “Copyright Security Agreement”), by
[                    ] and [                    ] (individually, an “Assignor”, and, collectively, the
“Assignors”), in favor of UBS AG, STAMFORD BRANCH, a United States branch of a Swiss bank
located at 677 Washington Boulevard, Stamford, CT 06901, in its capacity as collateral agent
pursuant to the Credit Agreement (in such capacity, the “Assignee”).

W I T N E S S E T H:

          WHEREAS, the Assignors are party to a Security Agreement of even date herewith (the
“Security Agreement”) in favor of the Assignee pursuant to which the Assignors are
required to execute and deliver this Copyright Security Agreement;

          NOW, THEREFORE, in consideration of the foregoing premises and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, each Assignor and the
Assignee hereby agree as follows:

          SECTION
1. Defined Terms. Capitalized terms used but not otherwise defined herein
shall have the meanings given to them in the Security Agreement. For purposes of this Copyright
Security Agreement, the term “Copyrights” shall mean, collectively, all copyrights
(whether statutory or common law, whether established, registered or recorded in the United States
or any other country or any political subdivision thereof, whether registered or unregistered and
whether published or unpublished) and all mask works (as such term is defined in 17 U.S.C. Section
901, et seq.), together with any and all (i) copyright registrations and applications, (ii) rights
and privileges arising under applicable law with respect to such copyrights, (iii) renewals and
extensions thereof and amendments thereto, (iv) income, fees, royalties, damages, claims and
payments now or hereafter due and/or payable with respect thereto, including damages and payments
for past, present or future infringements or other violations thereof, (v) rights corresponding
thereto throughout the world and (vi) rights to sue for past, present or future infringements
thereof.

          SECTION
2. Grant of Security Interest in Copyright Collateral. As collateral security
for the payment and performance in full of all the Secured Obligations, each Assignor hereby
pledges and grants to the Assignee for the benefit of the Secured Parties, a lien on and security
interest in all of the right, title and interest of such Assignor in, to and under the following
property, wherever located, and whether now existing or hereafter arising or acquired from time to
time (collectively, the “Pledged Copyright Collateral”):

          (a) all Copyrights of such Assignor, including, without limitation, the registered and
applied-for Copyrights of such Assignor listed on Schedule I attached hereto; and

 

-2-

          (b) all Proceeds and products of each of the foregoing and all accessions to, substitutions
and replacements for, and rents, profits and products of, each of the foregoing, and any and all
Proceeds of any insurance, indemnity, warranty or guaranty payable to such Assignor from time to
time with respect to any of the foregoing.

Notwithstanding anything to the contrary contained in clauses (a) and (b) above, the security
interest created by this Copyright Security Agreement shall not extend to any Excluded Property.

          SECTION 3. Security Agreement. The lien and security interest granted pursuant to this
Copyright Security Agreement is granted in conjunction with the lien and security interest granted
to the Assignee pursuant to the Security Agreement and Assignors hereby acknowledge and affirm that
the rights and remedies of the Assignee with respect to the lien and security interest in the
Copyrights made and granted hereby are more fully set forth in the Security Agreement. In the event
that any provision of this Copyright Security Agreement is deemed to conflict with the Security
Agreement, the provisions of the Security Agreement shall control unless the Assignee shall
otherwise determine.

          SECTION 4. Recordation. Each Assignor hereby authorizes and requests that the United
States Copyright Office record this Copyright Security Agreement.

          SECTION 5. Termination. When all the Secured Obligations have been paid in full and
the Commitments of the Lenders to make any Loan under the Credit Agreement shall have expired or
been sooner terminated in accordance with the provisions of the Credit Agreement, this Copyright
Security Agreement shall terminate. Upon termination of this Copyright Security Agreement the
Pledged Copyright Collateral shall be released from the Lien of this Copyright Security Agreement
and upon the request and at the sole cost and expense of the Assignors, the Assignee shall
execute, acknowledge, and deliver to the Assignors an instrument in writing in recordable form
releasing the Pledged Copyright Collateral from the Lien of this Copyright Security Agreement.

          SECTION 6. Counterparts. This Copyright Security Agreement and any amendments,
waivers, consents or supplements hereto may be executed in any number of counterparts and by
different parties hereto in separate counterparts, each of which when so executed and delivered
shall be deemed to be an original, but all such counterparts together shall constitute one and the
same agreement. Delivery of an executed counterpart of a signature page of this Copyright Security
Agreement by telecopier shall be effective as delivery of a manually executed counterpart of this
Copyright Security Agreement.

          SECTION 7. Governing Law. This Copyright Security Agreement shall be construed in
accordance with and governed by the law of the State of New York, without regard to conflicts of
law principles that would require the application of the laws of another jurisdiction.

          SECTION 8. INTERCREDITOR AGREEMENT GOVERNS. NOTWITHSTANDING
ANYTHING HEREIN TO THE CONTRARY, THE LIEN AND SECURITY INTEREST GRANTED TO THE
ASSIGNEE, FOR THE BENEFIT OF THE SECURED PARTIES, PURSUANT TO THIS COPYRIGHT SECURITY
AGREEMENT AND THE EXERCISE OF ANY RIGHT OR REMEDY BY THE ASSIGNEE AND THE OTHER SECURED
PARTIES HEREUNDER ARE SUBJECT TO THE PROVISIONS OF THE INTERCREDITOR AGREEMENT. IN THE
EVENT OF ANY CONFLICT OR INCONSISTENCY BETWEEN THE PROVISIONS OF THE

 

-3-

INTERCREDITOR AGREEMENT AND THIS COPYRIGHT SECURITY AGREEMENT, THE PROVISIONS OF THE
INTERCREDITOR AGREEMENT SHALL GOVERN AND CONTROL.

[REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK.]

 

-4-

          IN WITNESS WHEREOF, each Assignor has caused this Copyright Security Agreement to be executed
and delivered by its duly authorized officer as of the date first above written.

	 	 	 	 	 	 	 	 	 
	 	 	 	 	[ASSIGNORS]1	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Name:	 	 
	 

	 	 	 	 	 	Title:	 	 
	 
	 	 	 	 	 	 	 	 
	Accepted and Agreed:	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	UBS AG, STAMFORD BRANCH, 

as Assignee	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	By:
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	By:
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 	 	 

 

			
	1	 	This document needs only to be executed by Pledgors that hold registered
or applied-for Copyrights that are subject to the Lien of the Security Agreement.

 

-5-

SCHEDULE I

to

COPYRIGHT SECURITY AGREEMENT

COPYRIGHT REGISTRATIONS AND COPYRIGHT APPLICATIONS

Copyright Registrations:

	 	 	 	 	 	 	 	 	 
	 	 	 	 	REGISTRATION	 	 
	OWNER	 	NUMBER	 	TITLE OF WORK

Copyright Applications:

	 	 	 	 	 
	OWNER	 	TITLE OF WORK

 

 

EXHIBIT 5

PATENT SECURITY AGREEMENT

          PATENT
SECURITY AGREEMENT, dated as of [                    ]
 (“Patent Security Agreement”), by [                    ] and [                    ] (individually, an “Assignor”, and, collectively, the “Assignors”), in favor of
UBS AG, STAMFORD BRANCH, a United States branch of a Swiss bank located at 677 Washington
Boulevard, Stamford, CT 06901, in its capacity as collateral agent pursuant to the Credit Agreement
(in such capacity, the “Assignee”).

W I T N E S S E T H:

          WHEREAS, the Assignors are party to a Security Agreement of even date herewith (the
“Security Agreement”) in favor of the Assignee pursuant to which the Assignors are
required to execute and deliver this Patent Security Agreement;

          NOW, THEREFORE, in consideration of the foregoing premises and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, each Assignor and the
Assignee hereby agree as follows:

          SECTION 1. Defined Terms. Capitalized terms used but not otherwise defined herein
shall have the meanings given to them in the Security Agreement. For purposes of this Patent
Security Agreement, the term “Patents” shall mean, collectively, all patents, patent
applications, certificates of inventions, industrial designs and rights corresponding thereto
throughout the world (whether established or registered or recorded in the United States or any
other country or any political subdivision thereof), together with any and all (i) rights and
privileges arising under applicable law with respect to any of the foregoing, (ii) inventions and
improvements described and claimed therein, (iii) reissues, divisions, continuations, renewals,
extensions and continuations-in-part thereof and amendments thereto, (iv) income, fees, royalties,
damages, claims and payments now or hereafter due and/or payable thereunder and with respect
thereto including damages and payments for past, present or future infringements or other
violations thereof, (v) rights corresponding thereto throughout the world and (vi) rights to sue
for past, present or future infringements or other violations thereof.

          SECTION 2. Grant of Security Interest in Patent Collateral. As collateral security
for the payment and performance in full of all the Secured Obligations, each Assignor hereby
pledges and grants to the Assignee for the benefit of the Secured Parties, a lien on and security
interest in all of the right, title and interest of such Assignor in, to and under the following
property, wherever located, and whether now existing or hereafter arising or acquired from time to
time (collectively, the “Pledged Patent Collateral”):

          (a) all Patents of such Assignor, including, without limitation, the registered and
applied-for Patents of such Assignor listed on Schedule I attached hereto; and

 

-2-

          (b) all Proceeds and products of each of the foregoing and all accessions to, substitutions
and replacements for, and rents, profits and products of, each of the foregoing, and any and all
Proceeds of any insurance, indemnity, warranty or guaranty payable to such Assignor from time to
time with respect to any of the foregoing.

Notwithstanding anything to the contrary contained in clauses (a) and (b) above, the security
interest created by this Patent Security Agreement shall not extend to any Excluded Property.

          SECTION
3. Security Agreement. The lien and security interest granted pursuant to
this Patent Security Agreement is granted in conjunction with the lien and security interest
granted to the Assignee pursuant to the Security Agreement and Assignors hereby acknowledge and
affirm that the rights and remedies of the Assignee with respect to the lien and security interest
in the Patents made and granted hereby are more fully set forth in the Security Agreement. In the
event that any provision of this Patent Security Agreement is deemed to conflict with the Security
Agreement, the provisions of the Security Agreement shall control unless the Assignee shall
otherwise determine.

          SECTION
4. Recordation. Each Assignor hereby authorizes and requests that the
Commissioner of Patents and Trademarks record this Patent and Security Agreement.

          SECTION
5. Termination. When all the Secured Obligations have been paid in full and
the Commitments of the Lenders to make any Loan under the Credit Agreement shall have expired or
been sooner terminated in accordance with the provisions of the Credit Agreement, this Patent
Security Agreement shall terminate. Upon termination of this Patent Security Agreement the Pledged
Patent Collateral shall be released from the Lien of this Patent Security Agreement and upon the
request and at the sole cost and expense of the Assignors, the Assignee shall execute,
acknowledge, and deliver to the Assignors an instrument in writing in recordable form releasing
the Pledged Patent Collateral from the Lien of this Patent Security Agreement.

          SECTION
6. Counterparts. This Patent Security Agreement and any amendments, waivers,
consents or supplements hereto may be executed in any number of counterparts and by different
parties hereto in separate counterparts, each of which when so executed and delivered shall be
deemed to be an original, but all such counterparts together shall constitute one and the same
agreement. Delivery of an executed counterpart of a signature page of this Patent Security
Agreement by telecopier shall be effective as delivery of a manually executed counterpart of this
Patent Security Agreement.

          SECTION
7. Governing Law. This Patent Security Agreement shall be construed in
accordance with and governed by the law of the State of New York, without regard to conflicts of
law principles that would require the application of the laws of another jurisdiction.

          SECTION
8. INTERCREDITOR AGREEMENT GOVERNS.
NOTWITHSTANDING ANYTHING HEREIN TO THE CONTRARY, THE LIEN AND SECURITY INTEREST GRANTED TO THE
ASSIGNEE, FOR THE BENEFIT OF THE SECURED PARTIES, PURSUANT TO THIS PATENT SECURITY AGREEMENT AND
THE EXERCISE OF ANY RIGHT OR REMEDY BY THE ASSIGNEE AND THE OTHER SECURED PARTIES HEREUNDER ARE
SUBJECT TO THE PROVISIONS OF THE INTERCREDITOR AGREEMENT. IN THE EVENT OF ANY CONFLICT OR
INCONSISTENCY BETWEEN THE PROVISIONS OF THE INTERCREDITOR

 

-3-

AGREEMENT AND THIS PATENT SECURITY AGREEMENT, THE PROVISIONS OF THE INTERCREDITOR AGREEMENT SHALL
GOVERN AND CONTROL.

[REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK.]

 

-4-

          IN WITNESS WHEREOF, each Assignor has caused this Patent Security Agreement to be executed and
delivered by its duly authorized officer as of the date first above written.

	 	 	 	 	 	 	 	 	 
	 	 	 	 	[ASSIGNORS]2	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Name:	 	 
	 

	 	 	 	 	 	Title:	 	 
	 
	 	 	 	 	 	 	 	 
	Accepted and Agreed:	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	UBS AG, STAMFORD BRANCH, 

as Assignee	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	By:
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	By:
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 	 	 

 

			
	2	 	This document needs only to be executed by Pledgers that hold registered or applied-for Patents
that are subject to the Lien of the Security Agreement.

 

-5-

SCHEDULE I

to

PATENT SECURITY AGREEMENT

PATENT REGISTRATIONS AND PATENT APPLICATIONS

Patent Registrations:

	 	 	 	 	 	 	 	 	 
	 	 	 	 	REGISTRATION	 	 
	OWNER	 	NUMBER	 	NAME

Patent Applications:

	 	 	 	 	 	 	 	 	 
	 	 	 	 	APPLICATION	 	 
	OWNER	 	NUMBER	 	NAME

 

 

EXHIBIT 6

TRADEMARK SECURITY AGREEMENT

          TRADEMARK SECURITY AGREEMENT, dated as of [                    ] ( “Trademark Security
Agreement”), by [                    ] and [                    ] (individually, an “Assignor”, and, collectively, the
“Assignors”), in favor of UBS AG, STAMFORD BRANCH, a United States branch of a
Swiss bank located at 677 Washington Boulevard, Stamford, CT 06901, in its capacity as
collateral agent pursuant to the Credit Agreement (in such capacity, the
“Assignee”).

W I T N E S S E T H:

          WHEREAS, the Assignors are party to a Security Agreement of even date herewith (the
“Security Agreement”) in favor of the Assignee pursuant to which the Assignors are
required to execute and deliver this Trademark Security Agreement;

          NOW, THEREFORE, in consideration of the foregoing premises and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, each Assignor and the
Assignee hereby agree as follows:

          SECTION 1. Defined Terms. Capitalized terms used but not otherwise defined herein
shall have the meanings given to them in the Security Agreement. For purposes of this Trademark
Security Agreement, the term “Trademarks” shall mean, collectively, all trademarks
(including service marks and certification marks), slogans, logos, certification marks, trade
dress, Internet Domain Names, corporate names and trade names, whether registered or unregistered
(whether statutory or common law and whether established or registered in the United States or any
other country or any political subdivision thereof), together with any and all (i) registrations
and applications for any of the foregoing, (ii) goodwill connected with the use thereof and
symbolized thereby, (iii) rights and privileges arising under applicable law with respect to the
use of any of the foregoing, (iv) reissues, continuations, extensions and renewals thereof and
amendments thereto, (v) income, fees, royalties, damages and payments now and hereafter due and/or
payable thereunder and with respect thereto, including damages, claims and payments for past,
present or future infringements, dilutions or other violations thereof, (vi) rights corresponding
thereto throughout the world and (vii) rights to sue for past, present and future infringements,
dilutions or other violations thereof.

          SECTION 2. Grant of Security Interest in Trademark Collateral. As collateral security
for the payment and performance in full of all the Secured Obligations, each Assignor hereby
pledges and grants to the Assignee for the benefit of the Secured Parties, a lien on and security
interest in all of the right, title and interest of such Assignor in, to and under the following
property, wherever located, and whether now existing or hereafter arising or acquired from time to
time (collectively, the “Pledged Trademark Collateral”):

          (a) all Trademarks of such Assignor, including, without limitation, the registered and
applied-for Trademarks of such Assignor listed on Schedule I attached hereto; and

 

-2-

          (b) all Proceeds and products of each of the foregoing and all accessions to, substitutions
and replacements for, and rents, profits and products of, each of the foregoing, and any and all
Proceeds of any insurance, indemnity, warranty or guaranty payable to such Assignor from time to
time with respect to any of the foregoing.

          Notwithstanding anything to the contrary contained in clauses (a) through (c) above, the security
interest created by this Trademark Security Agreement shall not extend to any Excluded Property.

          SECTION 3. Security Agreement. The lien and security interest granted pursuant to this
Trademark Security Agreement is granted in conjunction with the lien and security interest granted
to the Assignee pursuant to the Security Agreement and Assignors hereby acknowledge and affirm that
the rights and remedies of the Assignee with respect to the lien and security interest in the
Trademarks made and granted hereby are more fully set forth in the Security Agreement. In the event
that any provision of this Trademark Security Agreement is deemed to conflict with the Security
Agreement, the provisions of the Security Agreement shall control unless the Assignee shall
otherwise determine.

          SECTION 4. Recordation. Each Assignor hereby authorizes and requests that the
Commissioner of Patents and Trademarks record this Trademark Security Agreement.

          SECTION 5. Termination. When all the Secured Obligations have been paid in full and
the Commitments of the Lenders to make any Loan under the Credit Agreement shall have expired or
been sooner terminated in accordance with the provisions of the Credit Agreement, this Trademark
Security Agreement shall terminate. Upon termination of this Trademark Security Agreement the
Pledged Trademark Collateral shall be released from the Lien of this Trademark Security Agreement
and upon the request and at the sole cost and expense of the Assignors, the Assignee shall
execute, acknowledge, and deliver to the Assignors an instrument in writing in recordable form
releasing the Pledged Trademark Collateral from the Lien of this Trademark Security Agreement.

          SECTION 6. Counterparts. This Trademark Security Agreement and any amendments,
waivers, consents or supplements hereto may be executed in any number of counterparts and by
different parties hereto in separate counterparts, each of which when so executed and delivered
shall be deemed to be an original, but all such counterparts together shall constitute one and the
same agreement. Delivery of an executed counterpart of a signature page of this Trademark Security
Agreement by telecopier shall be effective as delivery of a manually executed counterpart of this
Trademark Security Agreement.

          SECTION 7. Governing Law. This Trademark Security Agreement shall be construed in
accordance with and governed by the law of the State of New York, without regard to conflicts of
law principles that would require the application of the laws of another jurisdiction.

          SECTION 8. INTERCREDITOR AGREEMENT GOVERNS.
NOTWITHSTANDING ANYTHING HEREIN TO THE CONTRARY, THE LIEN AND SECURITY INTEREST GRANTED TO THE
ASSIGNEE, FOR THE BENEFIT OF THE SECURED PARTIES, PURSUANT TO THIS TRADEMARK SECURITY AGREEMENT
AND THE EXERCISE OF ANY RIGHT OR REMEDY BY THE ASSIGNEE AND THE OTHER SECURED PARTIES HEREUNDER
ARE SUBJECT TO THE PROVISIONS OF THE INTERCREDITOR AGREEMENT. IN THE EVENT

 

-3-

OF ANY CONFLICT OR INCONSISTENCY BETWEEN THE PROVISIONS OF THE INTERCREDITOR AGREEMENT AND THIS
TRADEMARK SECURITY AGREEMENT, THE PROVISIONS OF THE INTERCREDITOR AGREEMENT SHALL GOVERN AND
CONTROL.

[REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK.]

 

-4-

     IN WITNESS WHEREOF, each Assignor has caused this Trademark Security Agreement to
be executed and delivered by its duly authorized officer as of the date first above written.

	 	 	 	 	 	 	 	 	 
	 	 	 	 	[ASSIGNORS]3	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Name:	 	 
	 

	 	 	 	 	 	Title:	 	 
	 
	 	 	 	 	 	 	 	 
	Accepted and Agreed:	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	UBS AG, STAMFORD BRANCH, 

as Assignee	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	By:
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	By:
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 	 	 

 

			
	3	 	This document needs only to be executed by Pledgors that hold registered or applied-for
Trademarks that are subject to the Lien of the Security Agreement.

 

-5-

SCHEDULE I

to

TRADEMARK SECURITY AGREEMENT

TRADEMARK REGISTRATIONS AND TRADEMARK APPLICATIONS

Trademark Registrations:

	 	 	 	 	 	 	 	 	 
	 	 	 	 	REGISTRATION	 	 
	OWNER	 	NUMBER	 	TRADEMARK

Trademark Applications:

	 	 	 	 	 	 	 	 	 
	 	 	 	 	APPLICATION	 	 
	OWNER	 	NUMBER	 	TRADEMARK

 

EXHIBIT 7

FORM OF BAILEE LETTER

UBS AG, Stamford Branch

677 Washington Boulevard

Stamford, Connecticut 06901

Attention: Chistopher Gomes

Facsimile No.: 203-719-3180

          Re: [                    ]

          [                    ] (the “Bailor”), a [                    ] and a subsidiary of Novelis Inc. (the
“Parent”), now does or hereafter may deliver to certain premises [managed]
[owned] by [                    ] (the “Bailee”), a [                    ], on behalf of the Bailor as owner and
located at [                    ] (the “Premises”), certain of its [DESCRIBE PROPERTY SUBJECT TO
BAILMENT] for [DESCRIBE PURPOSE FOR WHICH PROPERTY HAS BEEN DELIVERED TO BAILEE].

          The Parent and certain of its Subsidiaries (collectively, the “Borrowers”) have
entered into financing arrangements with certain financial institutions (the “Lenders”),
pursuant to a Credit Agreement, dated as of July 6, 2007 (as amended, restated, supplemented or
otherwise modified from time to time, the “Credit Agreement”) for which UBS AG, Stamford
Branch shall act as collateral agent (the “Agent”). As a condition to the Agent’s and the
Lenders’ loans and other financial accommodations to the Borrowers (as defined in the Credit
Agreement), the Agent and the Lenders require, among other things, liens on all of the Bailor’s
property located on the Premises, and the proceeds thereof (the “Collateral”).

          To induce the Agent and the Lenders (together with their respective agents and assigns) to
enter into said financing arrangements, and for other good and valuable consideration, the Bailee
hereby acknowledges receipt of the above notice, and hereby further agrees that:

     (i) title to the Collateral remains with the Bailor while the Collateral is in the
custody, control or possession of the Bailee, the undersigned, to the best of its
knowledge without special inquiry, does not know of any security interest or claim with
respect to such goods or proceeds, other than the security interest which is the
subject of this Agreement, and the Bailee will not assert against the Collateral any
lien, right of distraint or levy, right of offset, claim, deduction, counterclaim,
security or other interest in the Collateral, including any of the foregoing which
might arise or exist in its favor pursuant to any agreement, common law, statute
(including the Federal Bankruptcy Code) or otherwise, all of which the undersigned
hereby subordinates in favor of the Agent;

     (ii) the Collateral shall be clearly identified or identifiable as being owned by
the Bailor and is distinguishable from the property of the Bailee and other property in
its possession;

     (iii) none of the Collateral located on the Premises shall be permitted to become
a fixture to the Premises;

 

          (iv) the Bailee has not issued, and shall not issue, any negotiable documents or
other negotiable instruments in respect of any Collateral;

     (v) if any Borrower defaults on its obligations to the Agent and the Lenders,
subject to any grace period, and, as a result, the Agent undertakes to enforce its
security interest in the Collateral, the Bailee, upon receipt of reasonable written
confirmation of the currency and existence of a default (a) will hold the Collateral
for the Agent’s account for the benefit of the Lenders, and release the Collateral only
to the Agent or its designee, (b) will permit the Agent to enter the Premises upon
reasonable notice and during regular business hours and without unduly interrupting the
Bailee’s operations, to inspect, assemble, take possession of, and remove all of the
Collateral located on the Premises and will reasonably cooperate with the Agent in its
efforts to do so; (c) will permit the Collateral to remain on the Premises for
forty-five (45) days after the Agent notifies the Bailee in writing of the default, or,
at the Agent’s option, to remove the Collateral from the Premises within a reasonable
time, not to exceed forty-five (45) days after the Agent notifies the undersigned in
writing of the default; (d) will not hinder the Agent’s actions in enforcing its liens
on the Collateral; and (e) after the Agent notifies the Bailee in writing of the
default, will, without further consent or agreement of the Bailor, abide solely by
Agent’s lawful instructions with respect to the Collateral, and not those of the
Bailor; and

     (vi) the Bailee hereby waives and releases, for Agent’s benefit, any and all
claims, liens, including bailee’s liens, and demands of every kind which Bailee has or
may later have against the Collateral (including any right to include such goods in any
secured financing to which Bailee may become party).

          The Bailee hereby irrevocably and unconditionally authorizes Agent (or its designee) to file
at any time prior to the payment in full of the Secured Obligations (as defined in the Credit
Agreement) in any jurisdiction and with such filing offices as the Agent so chooses such financing
statements naming the Bailee as the debtor consignee, the Bailor as the secured party consignor,
and the Agent as assignee, describing the Collateral in a manner that Agent believes is reasonably
necessary or desirable to protect its security interest in the Bailor’s property, and including any
other information with respect to the Bailee required under the Uniform Commercial Code for the
sufficiency of such financing statement or for it to be accepted by the filing office of any
applicable jurisdiction (and any amendments or continuations with respect thereto); provided,
however, Agent shall provide to Bailor for review copies of any such filings to be made,
sufficiently in advance of filing and once filed, final copies of such filings.

          Any notice(s) required or desired to be given hereunder shall be directed to the party to be
notified at the address stated herein.

          The agreements contained herein shall continue in force until each Borrower’s obligations and
liabilities to the Agent and the Lenders are paid and satisfied in full and all financing
arrangements among the Agent, the Lenders and the Borrowers have been terminated.

          The consent of the Bailor hereto constitutes its acknowledgment that Agent may assert any of
the rights set forth or referred to herein, without objection by the Bailor, and that the Bailee
may act in accordance with this Agreement without liability to the Bailor. By its signature below,
the Bailor agrees to reimburse the Bailee for all reasonable costs and expenses incurred by the
Bailee as a direct result of compliance with this Agreement.

7

 

          The Bailee will notify all successor owners, transferees, purchasers and mortgagees of the
Premises of the existence of this waiver. The agreements contained herein may not be modified or
terminated orally and shall be binding upon the successors, assigns and personal representatives of
the undersigned.

[Signature
pages follow]

8

 

          This Agreement may be executed in any number of counterparts and by different parties to this
Agreement on separate counterparts, each of which, when so executed, shall be deemed an original,
but all such counterparts shall constitute one and the same agreement. Any signature delivered by a
party by facsimile transmission shall be deemed to be an original signature hereto. The undersigned
hereby waives notice of acceptance of this Agreement by Agent.

          Executed and delivered this                      day of                     , 20      .

	 	 	 	 	 	 	 	 	 
	 	 	 	 	[                    ]

[Address]	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Name:	 	 
	 

	 	 	 	 	 	Title:	 	 
	 
	 	 	 	 	 	 	 	 
	CONSENTED AND AGREED TO:

[                    ]

[Address]	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	By:
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	ACKNOWLEDGED AND ACCEPTED:	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	UBS AG, STAMFORD
BRANCH, as Agent

677 Washington
Boulevard 

Stamford,
Connecticut 06901 

Attention:
Christopher Gomes 

Facsimile No:
203-719-3180	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	By:
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	By:
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 	 	 

 

EXHIBIT M-2

Form of

CANADIAN SECURITY AGREEMENT

[See
Tab # C.1-2, 5-6, 8.]

EXHIBIT M-2-1

 

 

AV ALUMINUM INC.

NOVELIS INC.

NOVELIS CAST HOUSE TECHNOLOGY LTD.

4260848 CANADA INC.

4260856 CANADA INC.

NOVELIS NO. 1 LIMITED PARTNERSHIP

as Obligors

and

UBS AG, STAMFORD BRANCH

as Collateral Agent

 

SECURITY AGREEMENT

July 6, 2007

 

 

 

SECURITY AGREEMENT

     Security agreement dated as of July 6, 2007 made by each of AV Aluminum Inc., Novelis Inc.,
Novelis Cast House Technology Ltd., 4260848 Canada Inc., 4260848 Canada Inc. and Novelis No. 1
Limited Partnership, by its general partner 4260848 Canada Inc., to and in favour of UBS AG,
Stamford Branch, as Collateral Agent for the benefit of the Secured Parties.

RECITALS:

	 	(a)	 	The Agents and the Lenders have agreed to make certain credit facilities
available to the Borrowers on the terms and conditions contained in the Credit
Agreement;
	 
	 	(b)	 	The Guarantors have guaranteed the obligations of the Borrowers on the terms and
conditions contained in the Guarantee; and
	 
	 	(c)	 	It is a condition precedent to the extension of credit to the Borrowers under the
Credit Agreement that the Obligors execute and deliver this Agreement in favour of the
Collateral Agent as security for the payment and performance of their obligations under
the Credit Agreement, the Guarantee and the other Credit Documents to which they are a
party.

     In consideration of the foregoing and other good and valuable consideration, the receipt and
adequacy of which are acknowledged, the Obligors agree as follows.

ARTICLE 1

INTERPRETATION

Section 1.1 Defined Terms.

     As used in this Agreement, the following terms have the following meanings:

“Administrative Agent” means UBS AG, Stamford Branch, acting as administrative agent for the
Lenders under the Credit Agreement and any successor administrative agent appointed under the
Credit Agreement, and its successors and assigns.

“Agents” mean, collectively, the Administrative Agent and the Collateral Agent.

“Agreement” means this security agreement.

“Borrowers” means, collectively, the Canadian Borrower and the U.S. Borrower.

“Canadian Borrower” means Novelis Inc., a corporation amalgamated and existing under the laws of
Canada, and its successors and permitted assigns.

 

- 3 -

“Collateral” has the meaning specified in Section 2.1.

“Collateral Agent” means UBS AG, Stamford Branch acting as collateral agent for the Secured Parties
and any successor collateral agent appointed under the Credit Agreement, and its successors and
permitted assigns.

“Credit Agreement” means the credit agreement dated as of July 6, 2007 among the Borrowers,
Holdings, the Subsidiary Guarantors, the Lenders, the Administrative Agent, the Collateral Agent,
the other agents party thereto, and ABN AMRO Incorporated and UBS Securities LLC, as joint lead
arrangers and joint bookmanagers, as the same may be amended, modified, extended, renewed,
replaced, restated, supplemented or refinanced from time to time and includes any agreement
extending the maturity of, refinancing or restructuring all or any portion of, the indebtedness
under such agreement or any successor agreements, whether or not with the same Agents or Lenders.

“Excluded Property” means any (i) Equity Interest in any joint venture to the extent that the
terms of the applicable joint venture agreement validly prohibit the creation by the applicable
Obligor of a security interest in such Equity Interests in favour of the Collateral Agent, but
only to the extent and for so long as (A) the terms of the applicable agreement prohibit the
creation by the applicable Obligor of a security interest in such Equity Interests in favor of the
Collateral Agent and (B) such prohibition is permitted by Section 6.19 of the Credit Agreement,
and (ii) any United States trade-mark or service mark application filed on the basis of an
Obligor’s intent-to-use such mark, in each case, unless and until evidence of the use of such
trade-mark in interstate commerce is submitted to and accepted by the United States Patent and
Trademark Office; provided that, Excluded Property shall not include any proceeds, substitutions
or replacements of any Excluded Property referred to above (unless such proceeds, substitutions or
replacements would constitute Excluded Property referred to above)).

“Excluded Securities Accounts” means (i) securities accounts with investment property or other
property held in or credited to such securities accounts with an aggregate value of less than
$10,000,000 at any time in the aggregate for all such securities account of any Loan Party which
are not subject to a control agreement satisfactory to the Collateral Agent (excluding accounts
referred to in clause (ii)), and (ii) securities accounts with property held in or credited to
such securities accounts consisting solely of the Equity Interests of Aluminum Company of Malaysia
Berhard (Malaysia).

“Expenses” has the meaning specified in Section 2.2(d).

“Guarantee” means the guarantee dated the date hereof by the Guarantors to and in favour of the
Collateral Agent and the other Secured Parties.

 

- 4 -

“Guarantors” means, collectively, AV Aluminum Inc., a corporation incorporated and existing under
the laws of Canada, the Canadian Borrower, Novelis Cast House Technology Ltd., a corporation
incorporated and existing under the laws of Ontario, 4260848 Canada Inc., a corporation
incorporated and existing under the laws of Canada, 4260856 Canada Inc., a corporation
incorporated and existing under the laws of Canada and Novelis No. 1 Limited Partnership, a
partnership formed and existing under the laws of Quebec, by its general partner 4260848 Canada
Inc., and each of their successors and permitted assigns, and
“Guarantor” shall mean anyone of
them.

“Instruments” means (i) a bill, note or cheque within the meaning of the Bills of Exchange Act
(Canada) or any other writing that evidences a right to the payment of money and is of a type that
in the ordinary course of business is transferred by delivery with any necessary endorsement or
assignment, or (ii) a letter of credit and an advice of credit if the letter or advice states that
it must be surrendered upon claiming payment thereunder, or (iii) chattel paper or any other
writing that evidences both a monetary obligation and a security interest in or a lease of specific
goods, or (iv) documents of title or any other writing that purports to be issued by or addressed
to a bailee and purports to cover such goods in the bailee’s possession as are identified or
fungible portions of an identified mass, and that in the ordinary course of business is treated as
establishing that the Person in possession of it is entitled to receive, hold and dispose of the
document and the goods it covers, or (v) any document or writing commonly known as an instrument.

“Intellectual Property” means domestic and foreign: (i) patents, applications for patents and
reissues, divisions, continuations, renewals, extensions and continuations-in-part of patents or
patent applications; (ii) proprietary and non-public business information, including inventions
(whether patentable or not), invention disclosures, improvements, discoveries, trade secrets,
confidential information, know-how, methods, processes, designs, technology, technical data,
schematics, formulae and customer lists, and documentation relating to any of the foregoing; (iii)
copyrights, copyright registrations and applications for copyright registration; (iv) mask works,
mask work registrations and applications for mask work registrations; (v) designs, design
registrations, design registration applications and integrated circuit topographies; (vi) trade
names, business names, corporate names, domain names, website names and world wide web addresses,
common law trade-marks, trade-mark registrations and all renewals thereof, trade-mark
applications, trade dress and logos, and the goodwill associated with any of the foregoing; (vii)
computer software and programs (both source code and object code form), all proprietary rights in
the computer software and programs and all documentation and other materials related to the
computer software and programs; (viii) future infringements or other violations thereof; (ix)
income, fees, royalties, damages, claims and payments for past, present, (x) rights corresponding
thereto

 

- 5 -

throughout the world; and (xi) rights to sue for past, present or future infringements or other
violations thereof.

“Lenders” means the financial institutions and other lenders listed on the signature pages of the
Credit Agreement, any Person who may become a Lender pursuant to the Credit Agreement, and their
respective successors and assigns.

“Obligors” means the Guarantors and “Obligor” means any one of them.

“Perfection Certification” means the perfection certificate executed by each of the Obligors and
attached hereto as Schedule “B”.

“Registrable Intellectual Property” means any Intellectual Property in respect of which ownership,
title, security interests, charges or encumbrances are capable of registration, recording or
notation with any Governmental Authority pursuant to applicable laws.

“Required Secured Parties” means the Required Lenders, or to the extent required by the Credit
Agreement, all of the Lenders.

“Restricted Asset” has the meaning specified in Section 2.4(1).

“Secured Obligations” has the meaning specified in Section 2.2.

“Secured Parties” means, collectively, the Administrative Agent, the Collateral Agent, any
Receiver or Delegate, each other Agent, the Lenders, and each counterparty to a Hedging Agreement
with a Loan Party, if at the date of entering into such Hedging Agreement (or with respect to
Hedging Agreements in effect at the date hereof, at the date hereof) such person was a Lender,
Revolving Credit Lender, Arranger or Agent (or an Affiliate of a Lender, Revolving Credit Lender,
Arranger or Agent), and in each case, such person executes and delivers to the Administrative
Agent a letter agreement in form and substance acceptable to the Administrative Agent pursuant to
which such person (i) appoints the Collateral Agent as its agent under the applicable Loan
Documents and (ii) agrees to be bound by the provisions of Sections 10.03 and 10.09 of the Credit
Agreement, the Intercreditor Agreement and the Security Documents as if it were a Lender.

“Securities” means:

	 	(a)	 	a document that is (i) issued in bearer, order or registered form, (ii) of a
type commonly dealt in upon securities exchanges or markets or commonly recognized in
any area in which it is issued or dealt in as a medium for investment, (iii) one of a
class or series or by its terms is divisible into a class or series of documents, and
(iv) evidence of a share, participation or other interest in property or in any
enterprise or is evidence of an obligation of the issuer and includes an uncertificated security; and

 

- 6 -

	 	(b)	 	a share, participation or other interest in a Person; but excludes
	 
	 	(c)	 	any ULC Shares.

“Security Interest” has the meaning specified in Section 2.2.

“ULC Shares” means shares in any unlimited company or unlimited liability corporation at any time
owned or otherwise held by the Obligor.

“U.S. Borrower” means Novelis Corporation, a Texas corporation, and its successors and permitted
assigns.

Section 1.2 Interpretation.

	(1)	 	Terms defined in the Personal Property Security Act (Ontario) and the Securities Transfer Act
(Ontario) and used but not otherwise defined in this Agreement have the same meanings.
Capitalized terms used in this Agreement but not defined have the meanings given to them in
the Credit Agreement.

	(2)	 	Any reference in any Credit Document to Liens permitted by the Credit Agreement and any right
of the Obligors to create or suffer to exist Liens permitted by the Credit Agreement are not
intended to and do not and will not subordinate the Security Interest to any such Lien or give
priority to any Person over the Secured Parties.

	(3)	 	In this Agreement the words “including”, “includes” and “include” mean “including (or
includes or include) without limitation”. The expressions “Article”, “Section” and other
subdivision followed by a number mean and refer to the specified Article, Section or other
subdivision of this Agreement.

	(4)	 	Any reference in this Agreement to gender includes all genders. Words importing the singular
number only include the plural and vice versa.

	(5)	 	The division of this Agreement into Articles, Sections and other subdivisions and the
insertion of headings are for convenient reference only and do not affect its interpretation.

	(6)	 	The schedules attached to this Agreement form an integral part of it for all purposes of it.

 

- 7 -

	(7)	 	Any reference to this Agreement, any Credit Document or any Security Document refers to
this Agreement or such Credit Document or Security Document as the same may have been or may
from time to time be amended, modified, extended, renewed, restated, replaced or supplemented
and includes all schedules attached to it. Except as otherwise provided in this Agreement,
any reference in this Agreement to a statute refers to such statute and all rules and
regulations made under it as the same may have been or may from time to time be amended or
re-enacted.

ARTICLE 2

SECURITY

Section 2.1 Grant of Security.

     Subject to Section 2.4, each Obligor grants to the Collateral Agent, for the benefit of the
Secured Parties, a security interest in, and assigns, mortgages, charges, hypothecates and pledges
to the Collateral Agent, for the benefit of the Secured Parties, all of the property and
undertaking of such Obligor whether now owned or hereafter acquired and all of the property and
undertaking in which such Obligor now has or hereafter acquires any interest (collectively, the
“Collateral”) including all of such Obligor’s:

	 	(a)	 	present and after-acquired personal property;
	 
	 	(b)	 	inventory including goods held for sale, lease or resale, goods furnished or to be
furnished to third parties under contracts of lease, consignment or service, goods which
are raw materials or work in process, goods used in or procured for packing and materials
used or consumed in the businesses of the Obligors;
	 
	 	(c)	 	equipment, machinery, furniture, fixtures, plant, vehicles and other goods of every
kind and description and all licences and other rights and all related records, files,
charts, plans, drawings, specifications, manuals and documents;
	 
	 	(d)	 	accounts due or accruing and all related agreements, books, accounts, invoices,
letters, documents and papers recording, evidencing or relating to them;
	 
	 	(e)	 	money, documents of title and chattel paper;
	 
	 	(f)	 	Instruments and Securities, including the Instruments and Securities listed in
Schedule “A”;

 

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	 	(g)	 	intangibles including all security interests, goodwill, choses in action,
contracts, contract rights, licenses and other contractual benefits;
	 
	 	(h)	 	Intellectual Property including the Registrable Intellectual Property listed in
the Perfection Certificate;
	 
	 	(i)	 	all substitutions and replacements of and increases, additions and, where
applicable, accessions to the property described in Section 2.1(a) through Section 2.1
(h) inclusive; and
	 
	 	(j)	 	all proceeds in any form derived directly or indirectly from any dealing with
all or any part of the property described in Section 2.1(a) through Section 2.1(i)
inclusive, including the proceeds of such proceeds.

Section 2.2 Secured Obligations.

     The security interest, assignment, mortgage, charge, hypothecation and pledge granted by this
Agreement (collectively, the “Security Interest”) secures the payment and performance of the
following (collectively, the “Secured Obligations”):

	 	(a)	 	the obligations of the Borrowers and the other Loan Parties
from time to time
arising under or in respect of the due and punctual payment of (i) the principal of and
premium, if any, and interest (including interest accruing (and interest that would have
accrued but for such proceeding) during the pendency of any bankruptcy, insolvency,
receivership or other similar proceeding, regardless of whether allowed or allowable in
such proceeding) on the Loans, when and as due, whether at maturity, by acceleration,
upon one or more dates set for prepayment or otherwise, and (ii) all other monetary
obligations, including fees, costs, expenses and indemnities, whether primary, secondary,
direct, contingent, fixed or otherwise (including monetary obligations incurred during
the pendency of any bankruptcy, insolvency, receivership or other similar
proceeding, regardless of whether allowed or allowable in such proceeding), of the
Borrowers and the other Loan Parties under the Credit Agreement and the Loan Documents;
	 
	 	(b)	 	the due and punctual performance of all covenants, agreements, obligations and
liabilities of the Borrowers and the other Loan Parties under or pursuant to the Credit
Agreement and the other Loan Documents;

 

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	 	(c)	 	the due and punctual payment and performance of all obligations of the Borrowers
and the other Loan Parties under each Hedging Agreement entered into with any
counterparty that is a Secured Party; and
	 
	 	(d)	 	all expenses, costs and charges incurred by or on behalf of the Secured Parties
in connection with this Agreement, the Security Interest or the Collateral, including
all legal fees, court costs, receiver’s or agent’s remuneration and other expenses of
taking possession of, repairing, protecting, insuring, preparing for disposition,
realizing, collecting, selling, transferring, delivering or obtaining payment for the
Collateral, and of taking, defending or participating in any action or proceeding in
connection with any of the foregoing matters or otherwise in connection with the Secured
Parties’ interest in any Collateral, whether or not directly relating to the enforcement
of this Agreement or any other Credit Document (collectively, the “Expenses”).

Section 2.3 Attachment.

	(1)	 	Each Obligor acknowledges that (i) value has been given, (ii) it has rights in the applicable
Collateral (other than after-acquired Collateral), (iii) it has not agreed to postpone the
time of attachment of the Security Interest, and (iv) it has received a copy of this
Agreement.

	(2)	 	If any Securities or Instruments are now or at any time become evidenced, in whole or in
part, by uncertificated securities registered or recorded in records maintained by or on
behalf of the issuer thereof in the name of a clearing agency or a custodian or of a nominee
of either, the applicable Obligor will, at the request and option of the Collateral Agent, (i)
cause an appropriate entry to be made in the records of the clearing agency or custodian to
record the interest of the Collateral Agent in such Securities or Instruments created pursuant
to this Agreement or (ii) cause the Collateral Agent to have control over such Securities or
Instruments, other than with respect to Securities and Instruments held in an Excluded
Securities Account.

	(3)	 	Each Obligor delivers to and deposits with the Collateral Agent any and all certificates
evidencing the Securities listed in Schedule “A”, to the extent such securities are
certificated, together with, in each case, a stock power duly endorsed in blank for transfer
and grants control over such Securities to the Collateral Agent, as applicable. Each Obligor
also delivers to and deposits with the Collateral Agent the Instruments listed in Schedule
“A”, as applicable.

 

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	(4)	 	If any Obligor acquires any Securities or any Instruments, such Obligor will notify the
Collateral Agent in writing and provide the Collateral Agent with a revised Schedule “A”
recording the acquisition and particulars of such Instruments or Securities within 15 days
after such acquisition. Upon request by the Collateral Agent, such Obligor will promptly (but
in any event within 30 days after receipt by such Obligor or such longer period as may be
determined by the Collateral Agent in its sole discretion) deliver to and deposit with the
Collateral Agent, or cause the Collateral Agent to have control over, such Securities or
Instruments other than (i) Instruments evidencing amounts payable of less than $1,000,000 in
the aggregate for all Obligors or evidencing any rights to goods having a value of less than
$1,000,000 in the aggregate for all Obligors and (ii) Securities or Instruments representing
or evidencing Equity Interests in an Excluded Collateral Subsidiary which is not a Loan
Party, as security for the Secured Obligations. The applicable Obligor will also promptly
inform the Collateral Agent in writing of the acquisition by it of any ULC Shares.

	(5)	 	At the request of the Collateral Agent, the Obligors, as applicable will (i) cause the
transfer of any Securities or Instruments (other than Securities or Instruments representing
or evidencing Equity Interests in an Excluded Collateral Subsidiary which is not a Loan Party)
to the Collateral Agent to be registered wherever such registration may be required or
advisable in the reasonable opinion of the Collateral Agent, (ii) duly endorse any such
Securities or Instruments for transfer in blank or register them in the name of the Collateral
Agent or its nominee or otherwise as the Collateral Agent may reasonably direct, (iii)
immediately deliver to the Collateral Agent any and all consents or other documents which may
be necessary to effect the transfer of any such Securities or Instruments to the Collateral
Agent or any third party and (iv) deliver to or otherwise cause the Collateral Agent to have
control over such Securities or Instruments.

	(6)	 	Each Obligor will promptly notify the Collateral Agent in writing of the acquisition by it of
any Registrable Intellectual Property and will provide the Collateral Agent with a revised
Perfection Certificate recording the acquisition and particulars of such additional
Intellectual Property.

Section 2.4 Scope of Security Interest.

	(1)	 	To the extent that an assignment of amounts payable and other proceeds arising under or in
connection with, or the grant of a security interest in any agreement, licence, lease, permit
or quota of any Obligor would constitute a default under or a breach of or would result in
the termination of such agreement, licence, lease, permit or quota (each, a “Restricted
Asset”), the Security Interest with respect to each Restricted Asset will constitute a trust

 

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	 	 	created in favour of the Collateral Agent, for the benefit of the Secured Parties, pursuant
to which the applicable Obligor holds as trustee all proceeds arising under or in connection
with the Restricted Asset in trust for the Collateral Agent, for the benefit of the Secured
Parties, on the following basis:

	 	(a)	 	subject to the Credit Agreement, until the Security Interest is enforceable the
Obligor is entitled to receive all such proceeds; and
	 
	 	(b)	 	whenever the Security Interest is enforceable, (i) all rights of such Obligor to
receive such proceeds cease and all such proceeds will be immediately paid over to the
Collateral Agent for the benefit of the Secured Parties, and (ii) such Obligor will take
all actions requested by the Collateral Agent to collect and enforce payment and other
rights arising under the Restricted Asset.

Upon request by the Collateral Agent, the Obligors will use all commercially reasonable efforts
to obtain the consent of each other party to any and all Restricted Assets to the assignment of
such Restricted Asset to the Collateral Agent in accordance with this Agreement. The Obligors
will also use all commercially reasonable efforts to ensure that all agreements entered into on
and after the date of this Agreement expressly permit assignments of the benefits of such
agreements as collateral security to the Collateral Agent in accordance with the terms of this
Agreement.

	(2)	 	The Security Interest with respect to trade-marks and Intellectual Property established under
the laws of the United States including any state, territory or political subdivision thereof,
constitutes a lien on and security interest in, and a charge, hypothecation and pledge of,
such Collateral in favour of the Collateral Agent for the benefit of the Secured Parties, but
does not constitute an assignment or mortgage of such Collateral to the Collateral Agent or
any Secured Party.

	(3)	 	Until the Security Interest is enforceable, the grant of the Security Interest in the
Intellectual Property does not affect in any way the Obligors’ rights to commercially exploit
the Intellectual Property, defend it, enforce such Obligor’s rights in it or with respect to
it against third parties in any court or claim and be entitled to receive any damages with
respect to any infringement of it.

	(4)	 	The Security Interest does not extend to consumer goods or ULC Shares.

	(5)	 	The Security Interest does not extend or apply to the last day of the term of any lease or
sublease of real property or any agreement for a lease or sublease of real property, now held
or hereafter acquired by any of the Obligors, but

 

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	 	 	the Obligors will stand possessed of any such last day upon trust to assign and dispose of it
as the Collateral Agent may reasonably direct.

	(6)	 	The Security Interest does not extend to Excluded Property.

Section 2.5 Grant of Licence to Use Intellectual Property.

     Each Obligor hereby grants to the Collateral Agent an irrevocable, nonexclusive licence
(exercisable without payment of royalty or other compensation to such Obligor) to use, or
sublicense any Intellectual Property in which such Obligor has rights wherever the same may be
located, provided that the quality of products in connection with which any trade-mark is used
will not be materially inferior to the quality of such products prior to such Event of Default.
Such licence includes access to (i) all media in which any of the licensed items may be recorded
or stored, and (ii) all software and computer programs used for compilation or printout. The
license granted under this Section is to enable the Collateral Agent to exercise its rights and
remedies under Article 3 and for no other purpose.

Section 2.6 Care and Custody of Collateral.

	(1)	 	The Secured Parties have no obligation to keep Collateral in their possession identifiable.

	(2)	 	The Collateral Agent may upon the occurrence and during the continuance of an Event of
Default, (i) notify any Person obligated on an Instrument, Security or account to make
payments to the Collateral Agent, whether or not the Obligors were previously making
collections on such accounts, chattel paper, instruments, and (ii) assume control of any
proceeds arising from the Collateral.

	(3)	 	The Collateral Agent has no obligation to collect dividends, distributions or interest
payable on, or exercise any option or right in connection with, any Securities or Instruments.
The Collateral Agent has no obligation to protect or preserve any Securities or Instruments
from depreciating in value or becoming worthless and is released from all responsibility for
any loss of value. In the physical keeping of any Securities, the Collateral Agent is only
obliged to exercise the same degree of care as it would exercise with respect to its own
Securities kept at the same place.

Section 2.7 Rights of the Obligor.

	(1)	 	Until the occurrence of an Event of Default which is continuing, each Obligor, as
applicable, is entitled to vote the Securities that are part of the Collateral and to receive
dividends and distributions on such Securities, as may be permitted by the Credit Agreement.
Upon the occurrence and during the
continuance of an Event of Default, all rights of the Obligors to vote (under

 

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	 	 	any proxy given by the Collateral Agent (or its nominee) or otherwise) or to receive
distributions or dividends cease and all such rights become vested solely and absolutely in
the Collateral Agent.

	(2)	 	Any distributions or dividends received by any of the Obligors contrary to Section 2.7(1) or
any other moneys or property received by any of the Obligors after the Security Interest is
enforceable will be received as trustee for the Collateral Agent and the Secured Parties and
shall be immediately paid over to the Collateral Agent.

Section 2.8 Expenses.

     All Taxes and Other Taxes (as these terms are defined in the Credit Agreement), charges,
costs, and Expenses (including legal fees and notarial fees) including withholding taxes (a “Tax
Payment”), relating to, resulting from, or otherwise connected with, this Agreement, the
execution, amendment and/or the enforcement of this Agreement shall, for greater certainty be for
the account of the applicable Obligor and all shall be paid in accordance with Section 2.15 of the
Credit Agreement.

     The Obligors are liable for and will pay on demand by the Collateral Agent any and all
Expenses.

ARTICLE 3

ENFORCEMENT

Section 3.1 Enforcement.

     The Security Interest becomes and is enforceable against the Obligors upon the occurrence and
during the continuance of an Event of Default.

Section 3.2 Remedies.

     Whenever the Security Interest is enforceable, the Collateral Agent may realize upon the
Collateral and enforce the rights of the Collateral Agent and the Secured Parties by:

	 	(a)	 	entry onto any premises where Collateral consisting of tangible personal property
may be located;
	 
	 	(b)	 	entry into possession of the Collateral by any method permitted by law;
	 
	 	(c)	 	sale, grant of options to purchase, or lease of all or any part of the
Collateral;

 

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	 	(d)	 	holding, storing and keeping idle or operating all or any part of the Collateral;
	 
	 	(e)	 	exercising and enforcing all rights and remedies of a holder of the Securities and
Instruments as if the Collateral Agent were the absolute owner thereof (including, if
necessary, causing the Collateral to be registered in the name of the Collateral Agent or its
nominee if not already done);
	 
	 	(f)	 	collection of any proceeds arising in respect of the Collateral;
	 
	 	(g)	 	collection, realization or sale of, or other dealing with, accounts;
	 
	 	(h)	 	license or sublicense, whether on an exclusive or nonexclusive basis, of any Intellectual
Property for such term and on such conditions and in such manner as the Collateral Agent in
its sole judgment determines (taking into account such provisions as may be necessary to
protect and preserve such Intellectual Property);
	 
	 	(i)	 	instruction to any bank which has entered into a control agreement with the Collateral Agent
to transfer all moneys, Securities and Instruments held by such depositary bank to an account
maintained with or by the Collateral Agent;
	 
	 	(j)	 	application of any moneys constituting Collateral or proceeds thereof in accordance with
Section 5.11;
	 
	 	(k)	 	appointment by instrument in writing of a receiver (which term as used in this Agreement
includes a receiver and manager) or agent of all or any part of the Collateral and removal or
replacement from time to time of any receiver or agent;
	 
	 	(1)	 	institution of proceedings in any court of competent jurisdiction for the appointment of a
receiver of all or any part of the Collateral;
	 
	 	(m)	 	institution of proceedings in any court of competent jurisdiction for sale or foreclosure of
all or any part of the Collateral;
	 
	 	(n)	 	filing of proofs of claim and other documents to establish claims to the Collateral in any
proceeding relating to the Obligors; and
	 
	 	(o)	 	any other remedy or proceeding authorized or permitted under the Personal Property Security
Act (Ontario) or otherwise by law or equity.

 

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Section 3.3 Additional Rights.

     In addition to the remedies set forth in Section 3.2 and elsewhere in this Agreement, whenever
the Security Interest is enforceable, the Collateral Agent may:

	 	(a)	 	require any of the Obligors, at such Obligor’s expense, to assemble the Collateral
at a place or places designated by notice in writing and each of the Obligors agree to so
assemble the Collateral immediately upon receipt of such notice;
	 
	 	(b)	 	require the Obligors, by notice in writing, to disclose to the Collateral Agent the
location or locations of the Collateral and the Obligors agree to promptly make such
disclosure when so required;
	 
	 	(c)	 	repair, process, modify, complete or otherwise deal with the Collateral and prepare
for the disposition of the Collateral, whether on the premises of the Obligors or
otherwise;
	 
	 	(d)	 	redeem any prior security interest against any Collateral, procure the transfer of
such security interest to itself, or settle and pass the accounts of the prior mortgagee,
chargee or encumbrancer (any accounts to be conclusive and binding on the applicable
Obligor);
	 
	 	(e)	 	pay any liability secured by any Lien against any Collateral (the Obligors will
immediately on demand reimburse the Collateral Agent for all such payments);
	 
	 	(f)	 	carry on all or any part of the business of the Obligors and, to the exclusion of
all others including the Obligors, enter upon, occupy and use all or any of the premises,
buildings, and other property of or used by any of the Obligor for such time as the
Collateral Agent sees fit, free of charge, and the Collateral Agent and the Secured
Parties are not liable to the Obligors for any act, omission or negligence in so doing or
for any rent, charges, depreciation or damages incurred in connection with or resulting
from such action;
	 
	 	(g)	 	borrow for the purpose of carrying on any of the businesses of the Obligors or for
the maintenance, preservation or protection of the Collateral and grant a security
interest in the Collateral, whether or not in priority to the Security Interest, to
secure repayment;
	 
	 	(h)	 	commence, continue or defend any judicial or administrative proceedings for the
purpose of protecting, seizing, collecting, realizing or obtaining possession or payment of the
Collateral, and give good and valid receipts and discharges in respect of the
Collateral and

 

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	 	 	 	compromise or give time for the payment or performance of all or any part of the
accounts or any other obligation of any third party to the Obligors; and
	 
	 	(i)	 	at any public sale, and to the extent permitted by law on any private sale, bid
for and purchase any or all of the Collateral offered for sale and upon compliance with
the terms of such sale, hold, retain and dispose of such Collateral without any further
accountability to the Obligors or any other Person with respect to such holding,
retention or disposition, except as required by law. In any such sale to the Collateral
Agent, the Collateral Agent may, for the purpose of making payment for all or any part
of the Collateral so purchased, use any claim for Secured Obligations then due and
payable to it as a credit against the purchase price.

Section 3.4 Exercise of Remedies.

     The remedies under Section 3.2 and Section 3.3 may be exercised from time to time separately
or in combination and are in addition to, and not in substitution for, any other rights of the
Collateral Agent and the Secured Parties however arising or created. The Collateral Agent and the
Secured Parties are not bound to exercise any right or remedy, and the exercise of rights and
remedies is without prejudice to the rights of the Collateral Agent and the Secured Parties in
respect of the Secured Obligations including the right to claim for any deficiency.

Section 3.5 Receiver’s Powers.

	(1)	 	Any receiver appointed by the Collateral Agent is vested with the rights and remedies which
could have been exercised by the Collateral Agent in respect of the Obligors or the Collateral
and such other powers and discretions as are granted in the instrument of appointment and any
supplemental instruments. The identity of the receiver, its replacement and its remuneration
are within the sole and unfettered discretion of the Collateral Agent.

	(2)	 	Any receiver appointed by the Collateral Agent will act as agent for the Collateral Agent for
the purposes of taking possession of the Collateral, but otherwise and for all other purposes
(except as provided below), as agent for the Obligors. The receiver may sell, lease, or
otherwise dispose of Collateral as agent for the Obligors or as agent for the Collateral Agent
as the Collateral Agent may determine in its discretion. The Obligors agree to ratify and
confirm all actions of the receiver acting as agent for the Obligors, and to release and
indemnify the receiver in respect of all such actions.

 

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	(3)	 	The Collateral Agent, in appointing or refraining from appointing any receiver, does not
incur liability to the receiver, the Obligors or otherwise and is not responsible for any
misconduct or negligence of such receiver.

Section 3.6 Appointment of Attorney.

     The Obligors hereby irrevocably constitute and appoint the Collateral Agent (and any officer
of the Collateral Agent) the true and lawful attorney of the Obligors. As the attorney of the
Obligors, the Collateral Agent has the power to exercise for and in the name of the Obligors, upon
the occurrence and during the continuation of an Event of Default, with full power of
substitution, any of the Obligors’ right (including the right of disposal), title and interest in
and to the Collateral including the execution, endorsement, delivery and transfer of the
Collateral to the Collateral Agent, its nominees or transferees, and the Collateral Agent and its
nominees or transferees are hereby empowered to exercise all rights and powers and to perform all
acts of ownership with respect to the Collateral to the same extent as the Obligors might do. This
power of attorney is irrevocable, is coupled with an interest, has been given for valuable
consideration (the receipt and adequacy of which is acknowledged) and survives, and does not
terminate upon, the bankruptcy, dissolution, winding up or insolvency of any of the Obligors. This
power of attorney extends to and is binding upon each of the Obligors’ successors and permitted
assigns. The Obligors authorize the Collateral Agent to delegate in writing to another Person any
power and authority of the Collateral Agent under this power of attorney as may be necessary or
desirable in the opinion of the Collateral Agent, and to revoke or suspend such delegation.

Section 3.7 Dealing with the Collateral.

	(1)	 	The Collateral Agent and the Secured Parties are not obliged to exhaust their recourse
against the Obligors or any other Person or against any other security they may hold in
respect of the Secured Obligations before realizing upon or otherwise dealing with the
Collateral in such manner as the Collateral Agent may consider desirable.

	(2)	 	The Collateral Agent and the Secured Parties may grant extensions or other indulgences, take
and give up securities, accept compositions, grant releases and discharges and otherwise deal
with the Obligors and with other Persons, sureties or securities as they may see fit without
prejudice to the Secured Obligations, the liability of the Obligors or the rights of the
Collateral Agent and the Secured Parties in respect of the Collateral.

	(3)	 	Except as otherwise provided by law or this Agreement, the Collateral Agent and the Secured
Parties are not (i) liable or accountable for any failure to collect, realize or obtain
payment in respect of the Collateral, (ii) bound to institute proceedings for the purpose of
collecting, enforcing, realizing or

 

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		 	obtaining payment of the Collateral or for the purpose of preserving any rights of any
Persons in respect of the Collateral, (iii) responsible for any loss occasioned by any sale
or other dealing with the Collateral or by the retention of or failure to sell or otherwise
deal with the Collateral, or (iv) bound to protect the Collateral from depreciating in value
or becoming worthless.

Section 3.8 Standards of Sale.

     Without prejudice to the ability of the Collateral Agent to dispose of the Collateral in any
manner which is commercially reasonable, the Obligor acknowledges that:

	 	(a)	 	the Collateral may be disposed of in whole or in part;
	 
	 	(b)	 	the Collateral may be disposed of by public auction, public tender or private
contract, with or without advertising and without any other formality;
	 
	 	(c)	 	any assignee of such Collateral may be the Collateral Agent, a Secured Party or a
customer of any such Person;
	 
	 	(d)	 	any sale conducted by the Collateral Agent will be at such time and place, on such
notice and in accordance with such procedures as the Collateral Agent, in its sole
discretion, may deem advantageous;
	 
	 	(e)	 	the Collateral may be disposed of in any manner and on any terms necessary to avoid
violation of applicable law (including compliance with such procedures as may restrict
the number of prospective bidders and purchasers, require that the prospective bidders
and purchasers have certain qualifications, and restrict the prospective bidders and
purchasers to Persons who will represent and agree that they are purchasing for their own
account for investment and not with a view to the distribution or resale of the
Collateral) or in order to obtain any required approval of the disposition (or of the
resulting purchase) by any governmental or regulatory authority or official;
	 
	 	(f)	 	a disposition of the Collateral may be on such terms and conditions as to credit or
otherwise as the Collateral Agent, in its sole discretion, may deem advantageous; and
	 
	 	(g)	 	the Collateral Agent may establish an upset or reserve bid or price in respect of
the Collateral.

 

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Section 3.9 Dealings by Third Parties.

	(1)	 	No Person dealing with the Collateral Agent, any of the Secured Parties or an agent or
receiver is required to determine (i) whether the Security Interest has become enforceable,
(ii) whether the powers which such Person is purporting to exercise have become exercisable,
(iii) whether any money remains due to the Collateral Agent or the Secured Parties by the
Obligors, (iv) the necessity or expediency of the stipulations and conditions subject to which
any sale or lease is made, (v) the propriety or regularity of any sale or other dealing by the
Collateral Agent or any Secured Party with the Collateral, or (vi) how any money paid to the
Collateral Agent or the Secured Parties have been applied.

	(2)	 	Any bona fide purchaser of all or any part of the Collateral from the Collateral Agent or any
receiver or agent will hold the Collateral absolutely, free from any claim or right of
whatever kind, including any equity of redemption, of any of the Obligors, which it
specifically waives (to the fullest extent permitted by law) as against any such purchaser
together with all rights of redemption, stay or appraisal which such Obligor has or may have
under any rule of law or statute now existing or hereafter adopted.

ARTICLE 4

REPRESENTATIONS, WARRANTIES AND COVENANTS

Section 4.1 General Representations, Warranties and Covenants.

     The Obligors represent and warrant and covenant and agree, acknowledging and confirming that
the Collateral Agent and each Secured Party is relying on such representations, warranties,
covenants and agreements, that:

	 	(a)	 	Continuous Perfection. The Perfection Certificate sets out each of the Obligor’s
place of business or, if more than one, each Obligor’s chief executive office. Other
than in the case of Novelis No. 1 Limited Partnership, such place of business or chief
executive office, as the case may be, has been located at such address for the 60 days
immediately preceding the date of this Agreement. The Perfection Certificate also sets
out the address at which the books and records of the Obligor are located, the address
at which senior management of the Obligor are located and conduct their deliberations
and make their decisions with respect to the business of each Obligor and the address
from which the invoices and accounts of each Obligor are issued.
	 
	 	(b)	 	Additional Security Perfection and Protection of Security
Interest. The Obligors
will grant to the Collateral Agent, for the benefit of the Secured Parties, security interests,
assignments, mortgages, charges,

 

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	 	 	 	hypothecations and pledges in such property and undertaking of such Obligor that is not
subject to a valid and perfected first ranking security interest (subject only to Permitted
Liens), other than the Excluded Securities Accounts in respect of which a securities
intermediary may have a prior ranking interest, constituted by the Security Documents, in
each relevant jurisdiction as determined by the Collateral Agent. The Obligors will perform
all acts, execute and deliver all agreements, documents and instruments and take such other
steps as are requested by the Collateral Agent at any time to register, file, signify,
publish, perfect, maintain, protect, and enforce the Security Interest including: (i)
executing, recording and filing of financing or other statements, and paying all taxes, fees
and other charges payable, (ii) placing notations on its books of account to disclose the
Security Interest, (iii) delivering or using its commercially reasonable efforts to deliver,
as applicable, acknowledgements, confirmations and subordinations that may be necessary to
ensure that the Security Documents constitute a valid and perfected first ranking security
interest (subject only to Permitted Liens), other than the Excluded Securities Accounts in
respect of which a securities intermediary may have a prior ranking interest, (iv) executing
and delivering any agreements, documents and instruments that may be needed as a result of
the coming into force of the Securities Transfer Act (Ontario) and (v) delivering opinions of
counsel in respect of matters contemplated by this paragraph. The documents and opinions
contemplated by this paragraph must be in form and substance satisfactory to the Collateral
Agent.
	 
	 	(c)	 	Confirmation of Registerable Intellectual Property. The Perfection Certificate lists all
Registerable Intellectual Property that is owned by each of the Obligors on the date of this
Agreement. Upon the request of the Collateral Agent, the Obligors shall deliver to the
Collateral Agent a Confirmation of Security Interest in the form of Schedule “C” in respect of
all Registerable Intellectual Property now owned, and subsequently when acquired after the
date hereof, confirming the assignment for security of such Registerable Intellectual Property
to the Collateral Agent and shall within 30 days or such longer period as may be determined by
the Collateral Agent in its sole discretion make all filings, registrations and recordings as
are necessary or appropriate to perfect the Security Interest granted to the Collateral Agent
in the Registerable Intellectual Property.
	 
	 	(d)	 	Location of Property. None of the Obligors other than the Canadian Borrower and 4260848
Canada Inc., in its capacity as general partner of

 

- 21 -

	 	 	 	Novelis No. 1 Limited Partnership has any tangible property located outside of Ontario.
The Canadian Borrower does not hold any tangible property outside of Ontario, Quebec,
British Columbia and Alberta. 4260848 Canada Inc., in its capacity as general partner
of Novelis No. 1 Limited Partnership does not hold any tangible property outside of
Quebec and Ontario.
	 
	 	(e)	 	Control Agreements. Other than as contemplated by Section 4.1(b), none of the
Obligors will grant control to any party other than the Collateral Agent and, subject
to the terms of the Intercreditor Agreement, the Term Credit Agents, in respect of any
investment property.

ARTICLE 5

GENERAL

Section 5.1 Notices.

     Any notices, directions or other communications provided for in this Agreement must be in
writing and given in accordance with the Credit Agreement, for the Canadian Borrower, or the
Guarantee, for any of the Guarantors.

Section 5.2 Discharge.

     The Security Interest will be discharged upon, but only upon, (i) full and indefeasible
payment and performance of the Secured Obligations, and (ii) the Collateral Agent and the Secured
Parties having no Commitments under any Credit Document. Upon discharge of the Security Interest
and at the request and expense of the Obligors, the Collateral Agent will execute and deliver to
each of the Obligors such releases, discharges, financing statements and other documents or
instruments as the Obligors may reasonably require and the Collateral Agent will redeliver to the
Obligors, or as the Obligors may otherwise direct the Collateral Agent, any Collateral in its
possession.

Section 5.3 No Merger, Survival of Representations and Warranties.

     This Agreement does not operate by way of merger of any of the Secured Obligations and no
judgment recovered by the Collateral Agent or any of the Secured Parties will operate by way of
merger of, or in any way affect, the Security Interest, which is in addition to, and not in
substitution for, any other security now or hereafter held by the Collateral Agent and the Secured
Parties in respect of the Secured Obligations. The representations, warranties and covenants of
the Obligors in this Agreement survive the execution and delivery of this Agreement and any
advances under the Credit Agreement. Notwithstanding any investigation made by

 

- 22 -

or on behalf of the Collateral Agent or the Secured Parties these covenants, representations and
warranties continue in full force and effect.

Section 5.4 Further Assurances.

     The Obligors will do all acts and things and execute and deliver, or cause to be executed and
delivered, all agreements, documents and instruments that the Collateral Agent may require and take
all further steps relating to the Collateral or any other property or assets of the Obligors that
the Collateral Agent may require for (i) protecting the Collateral, (ii) perfecting the Security
Interest, and (iii) exercising all powers, authorities and discretions conferred upon the
Collateral Agent. After the Security Interest becomes enforceable, the Obligors will do all acts
and things and execute and deliver all documents and instruments that the Collateral Agent may
require for facilitating the sale or other disposition of the Collateral in connection with its
realization.

Section 5.5 Supplemental Security.

     This Agreement is in addition to, without prejudice to and supplemental to all other security
now held or which may hereafter be held by the Collateral Agent or the Secured Parties.

Section 5.6 Successors and Assigns.

     This Agreement is binding on the Obligors and their successors and permitted assigns, and
enures to the benefit of the Collateral Agent, the Secured Parties and their respective successors
and assigns. This Agreement may be assigned by the Collateral Agent without the consent of, or
notice to, the Obligors, to such Person as the Collateral Agent may determine and, in such event,
such Person will be entitled to all of the rights and remedies of the Collateral Agent as set
forth in this Agreement or otherwise. In any action brought by an assignee to enforce any such
right or remedy, the Obligors will not assert against the assignee any claim or defence which the
Obligors now have or may have against the Collateral Agent or any of the Secured Parties. The
Obligors may not assign, transfer or delegate any of their rights or obligations under this
Agreement without the prior written consent of the Collateral Agent which may be unreasonably
withheld.

Section 5.7 Amalgamation.

     Each Obligor acknowledges and agrees that in the event it amalgamates with any other
corporation or corporations, it is the intention of the parties that the Security Interest (i)
subject to Section 2.4, extends to: (A) all of the property and undertaking that any of the
amalgamating corporations then owns, (B) all of the property and undertaking that the amalgamated
corporation thereafter acquires, (C) all of the property and undertaking in which any of the
amalgamating corporations then has any interest and (D) all of the property and undertaking in
which the amalgamated corporation thereafter acquires any interest; and (ii) secures

 

- 23 -

the payment and performance of all debts, liabilities and obligations, present or future, direct or
indirect, absolute or contingent, matured or unmatured, at any time or from time to time due or
accruing due and owing by or otherwise payable by each of the amalgamating corporations and the
amalgamated corporation to the Secured Parties in any currency, however or wherever incurred, and
whether incurred alone or jointly with another or others and whether as principal, guarantor or
surety and whether incurred prior to, at the time of or subsequent to the amalgamation. The
Security Interest attaches to the additional collateral at the time of amalgamation and to any
collateral thereafter owned or acquired by the amalgamated corporation when such becomes owned or
is acquired. Upon any such amalgamation, the defined term
“Obligors” shall include, collectively,
each of the amalgamating corporations and the amalgamated corporation, the defined term
“Collateral” means all of the property and undertaking and interests described in (i) above, and
the defined term “Secured Obligations” means the obligations described in (ii) above.

Section 5.8 Severability.

     If any court of competent jurisdiction from which no appeal exists or is taken, determines
any provision of this Agreement to be illegal, invalid or unenforceable, that provision will be
severed from this Agreement and the remaining provisions will remain in full force and effect.

Section 5.9 Amendment.

     This Agreement may only be amended, supplemented or otherwise modified by written agreement
executed by the Collateral Agent (with the consent of the Required Secured Parties) and the
Obligors.

Section 5.10 Waivers, etc.

	(1)	 	No consent or waiver by the Collateral Agent or the Secured Parties in respect of this
Agreement is binding unless made in writing and signed by an authorized officer of the
Collateral Agent (with the consent of the Required Secured Parties). Any consent or waiver
given under this Agreement is effective only in the specific instance and for the specific
purpose for which given. No waiver of any of the provisions of this Agreement constitutes a
waiver of any other provision.

	(2)	 	A failure or delay on the part of the Collateral Agent or the Secured Parties in exercising a
right under this Agreement does not operate as a waiver of, or impair, any right of the
Collateral Agent or the Secured Parties however arising. A single or partial exercise of a
right on the part of the Collateral Agent or the Secured Parties does not preclude any other
or further exercise of that right or the exercise of any other right by the Collateral Agent
or the Secured Parties.

 

- 24 -

Section 5.11 Application of Proceeds of Security.

     All monies collected by the Collateral Agent upon the enforcement of the Collateral Agent’s or
the Secured Parties’ rights and remedies under the Security Documents and the Liens created by them
including any sale or other disposition of the Collateral, together with all other monies received
by the Collateral Agent and the Secured Parties under the Security Documents, will be applied as
provided in the Credit Agreement. To the extent any other Credit Document requires proceeds of
collateral under such Credit Document to be applied in accordance with the provisions of this
Agreement, the Collateral Agent or holder under such other Credit Document shall apply such
proceeds in accordance with this Section.

Section 5.12 Conflict.

	(1)	 	Subject to Subsection (2) below, in the event of any conflict between the provisions of this
Agreement and the provisions of the Credit Agreement which cannot be resolved by both
provisions being complied with, the provisions contained in the Credit Agreement will prevail
to the extent of such conflict.

	(2)	 	NOTWITHSTANDING ANYTHING HEREIN TO THE CONTRARY, THE LIEN AND SECURITY INTEREST GRANTED TO
THE COLLATERAL AGENT, FOR THE BENEFIT OF THE SECURED PARTIES, PURSUANT TO THIS AGREEMENT AND
THE EXERCISE OF ANY RIGHT OR REMEDY BY THE COLLATERAL AGENT AND THE OTHER SECURED PARTIES
HEREUNDER ARE SUBJECT TO THE PROVISIONS OF THE INTERCREDITOR AGREEMENT, DATED AS OF JULY
6, 2007 (AS AMENDED, RESTATED, AMENDED AND RESTATED, SUPPLEMENTED OR OTHERWISE MODIFIED FROM
TIME TO TIME, THE “INTERCREDITOR AGREEMENT”, AMONG NOVELIS INC., A CORPORATION FORMED UNDER
THE CANADA BUSINESS CORPORATIONS ACT, NOVELIS CORPORATION, A TEXAS CORPORATION, NOVELIS PAE
CORPORATION, A DELAWARE CORPORATION, NOVELIS FINANCES USA LLC, A DELAWARE LIMITED LIABILITY
COMPANY, NOVELIS SOUTH AMERICA HOLDINGS LLC, A DELAWARE LIMITED LIABILITY COMPANY, ALUMINUM
UPSTREAM HOLDINGS LLC, A DELAWARE LIMITED LIABILITY COMPANY, NOVELIS UK LTD, A LIMITED
LIABILITY COMPANY INCORPORATED UNDER THE LAWS OF ENGLAND AND WALES WITH REGISTERED NUMBER
00279596, AND NOVELIS AG, A STOCK CORPORATION (AG) ORGANIZED UNDER THE LAWS OF SWITZERLAND,
HOLDINGS, THE SUBSIDIARIES OF HOLDINGS FROM TIME TO TIME PARTY THERETO, ABN AMRO BANK N.V., AS
ADMINISTRATIVE AGENT, FOR THE REVOLVING CREDIT LENDERS (AS DEFINED IN THE INTERCREDITOR
AGREEMENT), LASALLE BUSINESS CREDIT, LLC, AS COLLATERAL

 

- 25 -

	 	 	AGENT FOR THE REVOLVING CREDIT CLAIMHOLDERS (AS DEFINED IN THE INTERCREDITOR AGREEMENT) AND
AS FUNDING AGENT, ABN AMRO BANK N.V., ACTING THROUGH ITS CANADIAN BRANCH, AS CANADIAN
ADMINISTRATIVE AGENT FOR THE REVOLVING CREDIT LENDERS AND AS CANADIAN FUNDING AGENT, AND UBS
AG, STAMFORD BRANCH, AS ADMINISTRATIVE AGENT FOR THE TERM LOAN LENDERS (AS DEFINED IN THE
INTERCREDITOR AGREEMENT), AND AS COLLATERAL AGENT FOR THE TERM LOAN CLAIMHOLDERS (AS DEFINED
IN THE INTERCREDITOR AGREEMENT) AND CERTAIN OTHER PERSONS WHICH MAY BE OR BECOME PARTIES
THERETO OR BECOME BOUND THERETO FROM TIME TO TIME. IN THE EVENT OF ANY CONFLICT OR
INCONSISTENCY BETWEEN THE PROVISIONS OF THE INTERCREDITOR AGREEMENT AND THIS AGREEMENT, THE
PROVISIONS OF THE INTERCREDITOR AGREEMENT SHALL GOVERN AND CONTROL.

Section 5.13 Governing Law.

     This Agreement will be governed by, interpreted and enforced in accordance with the laws of
the Province of Ontario and the federal laws of Canada applicable therein.

 

 

     IN WITNESS WHEREOF the Obligors have executed this Agreement.

AV ALUMINUM INC.

NOVELIS INC.

NOVELIS CAST HOUSE TECHNOLOGY LTD.

4260848 CANADA INC.

4260856 CANADA INC.

 

 

NOVELIS NO. 1 LIMITED

PARTNERSHIP, by its general partner,

4260848 CANADA INC.

 

 

SCHEDULE “A”

INSTRUMENTS AND SECURITIES

SECURITIES

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	No.
	 	 	 	 	Record	 	 	 	 	 	 	 	 	 	Shares
	 	 	 	 	Owner	 	 	 	No. of	 	No. of	 	 	 	Covered
	 	 	 	 	(Beneficial	 	 	 	Shares or	 	Shares or	 	 	 	by
	 	 	Type of	 	Owner, if	 	 	 	Interests	 	Interests	 	Percentage	 	Warrants;
	Issuer	 	Organization	 	different)	 	Certificate No.	 	Owned	 	Outstanding	 	Ownership	 	Options
	Novelis Inc.
	 	Canadian	 	AV	 	ZQ937639	 	75,415,536	 	77,459,658	 	100%	 	None
	 
	 	Corporation	 	Aluminum	 	 	 	common	 	common	 	 	 	 
	 
	 	 	 	Inc.	 	 	 	shares	 	shares	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	1	 	2,044,122	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	common	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	shares	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Novelis
	 	Texas	 	Novelis	 	7	 	4,945	 	4,945	 	100%	 	None
	Corporation
	 	Corporation	 	Inc.	 	 	 	common	 	common	 	 	 	 
	 
	 	 	 	 	 	 	 	shares	 	shares	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Novelis Cast
House Technology Ltd.
	 	Ontario Corporation	 	Novelis Inc.	 	6	 	200 common shares	 	200 common shares	 	100%	 	None
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Novelis
	 	Delaware	 	Novelis	 	1	 	1 share	 	1 share	 	100%	 	None
	Finances
	 	Limited	 	Inc.	 	 	 	 	 	 	 	 	 	 
	USA LLC
	 	Liability	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	Company	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Novelis Foil
	 	French	 	Novelis	 	N/A	 	3,127,500	 	3,127,500	 	100%	 	None
	France SAS
	 	Société par	 	Inc.	 	 	 	shares	 	shares	 	 	 	 
	 
	 	Action	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	Simplifiée	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Novelis Europe Holdings Limited
	 	Private company limited by shares	 	Novelis Inc.	 	10	 	61,238,501 ordinary shares	 	165,631,965 ordinary shares	 	100% 	 	None 
	 
	 	 	 	 	 	n	 	84,393,463 ordinary shares	 	144,928,900 preferred shares	 	 	 	 
	 
	 
	 	 	 	 	 	n	 	1 ordinary share	 	 	 	 	 	 
	 
	 
	 	 	 	 	 	n	 	20,000,000	 	 	 	 	 	 

 

- 2 -

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	No.
	 	 	 	 	Record	 	 	 	 	 	 	 	 	 	Shares
	 	 	 	 	Owner	 	 	 	No. of	 	No. of	 	 	 	Covered
	 	 	 	 	(Beneficial	 	 	 	Shares or	 	Shares or	 	 	 	by
	 	 	Type of	 	Owner, if	 	 	 	Interests	 	Interests	 	Percentage	 	Warrants;
	Issuer	 	Organization	 	different)	 	Certificate No.	 	Owned	 	Outstanding	 	Ownership	 	Options
	 
	 	 	 	 	 	 	 	ordinary	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	shares	 	 	 	 	 	 
	 
	 	 	 	 	 	n	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	144,928,900	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	preferred	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	shares	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Novelis
	 	German	 	Novelis	 	N/A	 	25,000	 	25,000	 	100%	 	None
	Aluminium
	 	GmbH	 	Inc.	 	 	 	common	 	common	 	 	 	 
	Beteiligungs GmbH
	 	 	 	 	 	 	 	shares	 	shares	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Novelis
	 	French	 	Novelis	 	N/A	 	200,000	 	200,000	 	100%	 	None
	Laminés
	 	Société par	 	Inc.	 	 	 	shares	 	shares	 	 	 	 
	France SAS
	 	Action	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	Simplifiée	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Novelis
	 	French	 	Novelis	 	N/A	 	8,000	 	8,000 shares	 	100%	 	None
	PAE SAS
	 	Société par	 	Inc.	 	 	 	shares	 	 	 	 	 	 
	 
	 	Action	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	Simplifiée	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Novelis No.
	 	Québec	 	Novelis	 	N/A	 	N/A	 	N/A	 	99.99%	 	None
	1 Limited
	 	Limited	 	Inc.	 	 	 	 	 	 	 	 	 	 
	Partnership
	 	Partnership	 	(Limited	 	 	 	 	 	 	 	0.01%	 	 
	 
	 	 	 	Partner)	 	 	 	 	 	 	 	 	 	 
	 
	 
	 	 	 	4260848	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	Canada Inc.	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	(General	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	Partner)	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	4260848
	 	Canadian	 	Novelis	 	C-5	 	100	 	100 common	 	100%	 	None
	Canada Inc.
	 	Corporation	 	Inc.	 	 	 	common	 	shares	 	 	 	 
	 
	 	 	 	 	 	 	 	shares	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	4260856
	 	Canadian	 	Novelis	 	C-5	 	100	 	100 common	 	100%	 	None
	Canada Inc.
	 	Corporation	 	Inc.	 	 	 	common	 	shares	 	 	 	 
	 
	 	 	 	 	 	 	 	shares	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Aluminum
	 	Malaysian	 	Novelis	 	N/A	 	78,234,054	 	134,330,848	 	58.24%	 	None
	Company
	 	Public	 	Inc.	 	 	 	ordinary	 	ordinary	 	 	 	 
	of Malaysia
	 	Company	 	 	 	 	 	shares	 	shares	 	 	 	 
	Berhad
	 	limited by	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	shares listed	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	on the	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	Malaysian	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	Stock	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	Exchange	 	 	 	 	 	 	 	 	 	 	 	 

 

- 3 -

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	No.
	 	 	 	 	Record	 	 	 	 	 	 	 	 	 	Shares
	 	 	 	 	Owner	 	 	 	No. of	 	No. of	 	 	 	Covered
	 	 	 	 	(Beneficial	 	 	 	Shares or	 	Shares or	 	 	 	by
	 	 	Type of	 	Owner, if	 	 	 	Interests	 	Interests	 	Percentage	 	Warrants;
	Issuer	 	Organization	 	different)	 	Certificate No.	 	Owned	 	Outstanding	 	Ownership	 	Options
	Novelis do
	 	Brazilian	 	Novelis	 	N/A	 	120,130,999	 	120,131,000	 	99.99%	 	None
	Brasil Ltda.
	 	Limited	 	Inc.	 	 	 	quotas	 	quotas	 	 	 	 
	 
	 	Liability	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	Quota	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	Company	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Novelis
	 	Delaware	 	Novelis	 	N/A	 	1 share	 	1 share	 	100%	 	None
	South
	 	Limited	 	Inc.	 	 	 	 	 	 	 	 	 	 
	America
	 	Liability	 	 	 	 	 	 	 	 	 	 	 	 
	Holdings
	 	Company	 	 	 	 	 	 	 	 	 	 	 	 
	LLC
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Novelis
	 	Korean	 	4260856	 	Ahje00006~9	 	47,631	 	136,640	 	40.74%	 	None
	Korea Limited
	 	Company, Limited	 	Canada Inc.	 	Saje000017~23	 	shares	 	shares	 	(except	 	 
	 
	 	 	 	 	 	Maje000030~35	 	 	 	(including 19,735	 	Treasury Stock)	 	 
	[Note to draft: to be
	 	 	 	 	 	Daje000032~34	 	 	 	Treasury Stock)	 	 	 	 
	confirmed
by Korean counsel]
	 	 	 	 	 	Gaje000065	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	Ahje00003~5	 	31,755	 	 	 	27.16%	 	 
	 
	 	 	 	4260848	 	Saje000016	 	shares	 	 	 	(except 	 	 
	 
	 	 	 	Canada Inc.	 	Maje000023~29	 	 	 	 	 	Treasury 	 	 
	 
	 	 	 	 	 	Daje000027~31	 	 	 	 	 	Stock) 	 	 
	 
	 	 	 	 	 	Gaje000060~64	 	 	 	 	 	 	 	 

INSTRUMENTS

	 	 	 	 	 	 	 
	 	 	 	 	Original	 	 
	 	 	 	 	Amount/ Face	 	 
	 	 	 	 	Amount Monetary	 	 
	Issuer	 	Type of Instrument	 	Obligation Secured	 	Maturity Date
	Nil.
	 	 	 	 	 	 

 

- 4 -

TRANSFER RESTRICTIONS

 

 

SCHEDULE “B”

PERFECTION CERTIFICATE

 

 

Perfection Certificate

(See Supplemental Vol. #1, Tab # 2.)

 

 

SCHEDULE “C”

FORM OF CONFIRMATION OF SECURITY INTEREST IN INTELLECTUAL

PROPERTY

WHEREAS:

[Name
of Relevant Obligor] (the “Debtor”), a corporation incorporated and existing under the laws
of • with offices at [address], is the
owner of the [trade-marks/patents/copyrights/industrial
designs] set forth in Exhibit “A” hereto, the registrations and applications for the
[trade-marks/patents/copyrights/industrial designs] identified therein and the underlying goodwill
associated with such [trade-marks/patents/copyrights/industrial designs] (collectively, the
“[Trade-Marks/ Patents/Copyrights/Industrial Designs]”); and

UBS AG, Stamford Branch, as agent for certain lenders (the “Collateral Agent”), with offices at
[address], has entered into an agreement with the Debtor, as reflected by a separate document
entitled the “Security Agreement” dated as of the [•] day of •, 2007 by which the Debtor granted
to the Collateral Agent, a security interest in certain property, including the
[Trade-Marks/Patents/Copyrights/Industrial Designs], in consideration of the provision of certain
credit facilities to certain companies which are the wholly-owned subsidiaries of the Debtor;

NOW THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are
acknowledged and in accordance with the terms and obligations set forth in the Security Agreement,
the Debtor confirms the grant to the Collateral Agent of a security interest in and to the
[Trade-Marks/Patents/Copyrights/Industrial Designs],

DATED at
           on this [•] day of [•], [•].

	 	 	 
	[NAME OF RELEVANT OBLIGOR]

	 	 
	 
	 	 
	Per:
	 	 
	 
	 	 
	 	 	 
	Authorized Signing Officer
	 	 

 

 

EXHIBIT “A”

TRADE-MARKS/PATENTS/COPYRIGHTS/INDUSTRIAL DESIGNS

 

 

EXHIBIT M-3

Form of

U.K. SECURITY AGREEMENT

[See Tab # E.1-3, 5.]

EXHIBIT M-3-1

 

 

EXECUTION COPY

Dated 6 July 2007

Between

NOVELIS UK LTD

NOVELIS EUROPE HOLDINGS LIMITED

as Original Chargors

and

UBS AG, STAMFORD BRANCH

as Collateral Agent

 

GUARANTEE AND SECURITY AGREEMENT

 

This Deed is entered into subject to

the terms of a Credit Agreement

and an Intercreditor Agreement dated

on or about the date hereof

Skadden, Arps, Slate, Meagher & Flom (UK) LLP

40 Bank Street

Canary Wharf

London E14 5DS

 

 

CONTENTS

	 	 	 	 	 
	Clause	 	Page	 
	 
	 	 	 	 
	1. INTERPRETATION
	 	 	1	 
	2. GUARANTEE
	 	 	7	 
	3. CREATION OF SECURITY
	 	 	9	 
	4. REPRESENTATIONS — GENERAL
	 	 	14	 
	5. RESTRICTIONS ON DEALINGS
	 	 	15	 
	6. LAND
	 	 	15	 
	7. INVESTMENTS
	 	 	19	 
	8. INTELLECTUAL PROPERTY
	 	 	23	 
	9. ACCOUNTS
	 	 	24	 
	10. RELEVANT CONTRACTS
	 	 	26	 
	11. PLANT AND MACHINERY
	 	 	27	 
	12. WHEN SECURITY BECOMES ENFORCEABLE
	 	 	28	 
	13. ENFORCEMENT OF SECURITY
	 	 	28	 
	14. ADMINISTRATOR
	 	 	30	 
	15. RECEIVER
	 	 	30	 
	16. POWERS OF RECEIVER
	 	 	31	 
	17. APPLICATION OF PROCEEDS
	 	 	33	 
	18. TAXES, EXPENSES AND INDEMNITY
	 	 	34	 
	19. DELEGATION
	 	 	34	 
	20. FURTHER ASSURANCES
	 	 	34	 
	21. POWER OF ATTORNEY
	 	 	35	 
	22. PRESERVATION OF SECURITY
	 	 	35	 
	23. MISCELLANEOUS
	 	 	37	 
	24. LOAN PARTIES
	 	 	38	 
	25. RELEASE
	 	 	39	 
	26. COUNTERPARTS
	 	 	39	 
	27. NOTICES
	 	 	39	 
	28. GOVERNING LAW
	 	 	40	 
	29. ENFORCEMENT
	 	 	41	 
	SCHEDULE 1    Security Assets
	 	 	42	 
	PART 1 Real Property
	 	 	42	 
	PART 2 Charged Shares
	 	 	44	 
	PART 3 Specific Plant and Machinery
	 	 	44	 
	PART 4 Security Contracts
	 	 	44	 
	PART 5 Specific Intellectual Property
	 	 	45	 
	PART 6 Security Accounts
	 	 	45	 
	SCHEDULE 2    Forms of Letter for Security Accounts
	 	 	47	 
	PART 1 Notice to Account Bank
	 	 	47	 
	PART 3 Letter for Operation of Security Accounts
	 	 	51	 
	SCHEDULE 3    Forms of Letter for Insurance Policies
	 	 	53	 
	PART 1 Form of Notice of Assignment
	 	 	53	 
	PART 2 Form of Letter of Undertaking
	 	 	55	 
	SCHEDULE 4    Forms of Letter for Primary Contracts
	 	 	56	 
	PART 1 Notice to Counterparty
	 	 	56	 
	PART 2 Acknowledgement of Counterparty
	 	 	58	 

ii

 

	 	 	 	 	 
	 	 	Page	 
	SCHEDULE 5    Form of Deed of Accession
	 	 	59	 
	SCHEDULE
	 	 	61	 
	PART 1 Real Property
	 	 	61	 
	PART 2 Charged Shares
	 	 	61	 
	PART 3 Specific Plant and Machinery
	 	 	61	 
	PART 4 Security Contracts
	 	 	61	 
	PART 5 Specific Intellectual Property
	 	 	61	 
	PART 6 Security Accounts
	 	 	62	 

iii 

 

THIS DEED is dated 6 July 2007

BETWEEN:

	(1)	 	NOVELIS UK LTD (registered number 00279596) with its registered office at Castle Works,
Rogerstone, Newport, NP10 9YD (Novelis UK);
	 
	(2)	 	NOVELIS EUROPE HOLDINGS LIMITED (registered number 05308334) with its registered office at
Castle Works, Rogerstone, Newport, NP10 9YD (Novelis Europe and together with Novelis UK, the
Original Chargors); and
	 
	(3)	 	UBS AG, STAMFORD BRANCH as agent and trustee for the Secured Parties referred to below (the
Collateral Agent).

BACKGROUND:

	(A)	 	Each Chargor enters into this Deed in connection with the Credit Agreement (as defined
below).
	 
	(B)	 	It is intended that this document takes effect as a deed notwithstanding the fact that a
party may only execute this document under hand.

IT IS AGREED as follows:

	1.	 	INTERPRETATION
	 
	1.1	 	Definitions
	 
	 	 	In this Deed:
	 
	 	 	Account Bank means a bank with whom a Security Account is maintained.
	 
	 	 	Act means the Law of Property Act 1925.
	 
	 	 	Acquisition Document means in relation to any Chargor, any agreement under which it
acquires or disposes of a business or part of a business (either by share or asset sale)
and under which the aggregate consideration payable at anytime is in excess of £250,000.
	 
	 	 	Additional Chargor means a member of the Group which becomes a Chargor by executing a Deed
of Accession.
	 
	 	 	Administrator means any administrator appointed in respect of any Chargor (whether by the
Collateral Agent, or a court or otherwise).
	 
	 	 	Cash Management Document means in relation to any Chargor, any agreement between two or
more members of the Group to which it is a party that provides for any cash pooling,
set-off or netting arrangement, including the European Cash Pooling Arrangements.
	 
	 	 	Chargor means an Original Chargor and any Additional Chargor.
	 
	 	 	Charged Shares means all shares in any member of the Group incorporated in England and
Wales from time to time issued to a Chargor or held by any nominee on its behalf.

               

1

 

	 	 	Charged Company means each member of the Group from time to time whose shares are subject to the
Security under this Deed.
	 
	 	 	Credit Agreement means the Credit Agreement dated on or about the date hereof, between, amongst
others, Novelis Inc. As Canadian Borrower, Novelis Corporation As U.S. Borrower, Av Aluminum Inc.,
As Holdings, and the Other Guarantors party thereto, the Lenders party thereto and UBS AG,
Stamford Branch, as Administrative Agent and Collateral Agent.
	 
	 	 	Deed of Accession means a deed substantially in the form of Schedule 5 (Form of Deed of
Accession).
	 
	 	 	Discharge Date means the date on which the Administrative Agent is satisfied that all of the Term
Loan Obligations (as defined in the Intercreditor Agreement) have been irrevocably paid and
discharged.
	 
	 	 	Excluded Leasehold Property means in relation to any Chargor, the leasehold property specified in
Part 1B of Schedule 1 (Security Assets) opposite its name.
	 
	 	 	Excluded Real Property means in relation to any Chargor:

	 	(a)	 	the freehold property specified in Part 1B of Schedule 1 (Security Assets) opposite its name;
	 
	 	(b)	 	its Excluded Leasehold Property; and
	 
	 	(c)	 	any real property acquired by that Chargor after the date of this Deed which that Chargor and
the Collateral Agent have designated an Excluded Real Property.

	 	 	Fixtures means all fixtures and fittings (including trade fixtures and fittings) and fixed plant
and machinery included in a Chargor’s Mortgaged Property.
	 
	 	 	Group means the Original Chargors and their Affiliates from time to time.
	 
	 	 	Intercompany Document means in relation to any Chargor, any agreement with any other member of
the Group under which the aggregate consideration payable at anytime is in excess of £250,000.
	 
	 	 	Investments means:

	 	(a)	 	the Charged Shares; and
	 
	 	(b)	 	all other shares, stocks, debentures, bonds, warrants, coupons and other securities and
investments,

	 	 	which a Chargor purports to mortgage or charge under this Deed.
	 
	 	 	Mortgaged Property means all freehold and leasehold property which a Chargor purports to mortgage
or charge under this Deed.
	 
	 	 	Original Property means any freehold or leasehold property specified in Part 1A of Schedule 1
(Security Assets).
	 
	 	 	Party means a party to this Deed.

2

 

	 	 	Plant and Machinery means any plant, machinery, computers, office equipment or vehicles which a
Chargor purports to mortgage or charge under this Deed.
	 
	 	 	Premises means all buildings and erections included in a Chargor’s Mortgaged Property.
	 
	 	 	Primary Contract means in relation to any Chargor:

	 	(a)	 	any agreement specified in Part 4A of Schedule 1 (Security Assets) opposite its
name or in Part 4A of the schedule to any Deed of Accession by which it became party to
this Deed;
	 
	 	(b)	 	any other agreement to which that Chargor is a party and which that Chargor and
the Collateral Agent have designated a Primary Contract;
	 
	 	(c)	 	any Acquisition Document;
	 
	 	(d)	 	any Cash Management Document;
	 
	 	(e)	 	any Hedging Agreement;
	 
	 	(f)	 	any Intercompany Document;
	 
	 	(g)	 	any letter of credit issued in its favour under which the aggregate consideration
payable at anytime is in excess of £100,000; or
	 
	 	(h)	 	any bill of exchange or other negotiable instrument held by
it.

	 	 	Receiver means an administrative receiver, a receiver and manager or a receiver, in each case,
appointed under this Deed.
	 
	 	 	Related Rights means in relation to any Investment:

	 	(a)	 	the proceeds of sale of the whole or any part of that asset or any monies and proceeds paid
or payable in respect of that asset;
	 
	 	(b)	 	all rights under any licence, agreement for sale, option or lease in respect of that
asset; and
	 
	 	(c)	 	all rights, benefits, claims, contracts, warranties, remedies, security indemnities
or covenants for title
	 
	 	(d)	 	in respect of that asset.

	 	 	Report on Title means any report or certificate on title on the Mortgaged Property provided to
the Collateral Agent, together with confirmation from the provider of that Report that it can be
relied upon by the Secured Parties.
	 
	 	 	Revolving Credit Collateral Release Date means in relation to any Chargor the date on which the
Security Interests granted by that Chargor over the Revolving Credit Priority Collateral to the
Revolving Credit Collateral Agent have been irrevocably and unconditionally released, revoked,
re-transferred or otherwise become unenforceable.
	 
	 	 	Revolving Credit Security Agreement means the Guarantee and Security Agreement dated on or about
the date hereof between the Chargors and the Revolving Credit
Collateral Agent.

3

 

	 	 	Secondary Contract means in relation to any Chargor:

	 	(a)	 	any agreement specified in Part 4B of Schedule 1 (Security Assets) opposite
its name or in Part 4B of the schedule to any Deed of Accession by which it became
party to this Deed;
	 
	 	(b)	 	any other agreement to which that Chargor is a party and which that Chargor and
the Collateral Agent have designated a Secondary Contract; and
	 
	 	(c)	 	any other agreement (other than a Primary Contract) entered into after the date of
this Deed under which the aggregate consideration payable at anytime is in excess
of £250,000.

	 	 	Security means any Security Interest created, evidenced or conferred by or under this Deed
or any Deed of Accession.
	 
	 	 	Security Account means in relation to any Chargor:

	 	(a)	 	any account specified in Part 6 of Schedule 1 (Security Assets) opposite its
name or in Part 6 of the schedule to any Deed of Accession by which it became party to
this Deed; and
	 
	 	(b)	 	any other account which it purports to charge under this Deed.

	 	 	Security Assets means any and all assets of each Chargor that are the subject of this
Security.
	 
	 	 	Security Contracts means in relation to any Chargor, its Primary Contracts and its
Secondary Contracts.
	 
	 	 	Security Interest means any mortgage, pledge, lien, charge (fixed or floating),
assignment, hypothecation, set-off or trust arrangement for the purpose of creating
security, reservation of title or security interest or any other agreement or arrangement
having a similar effect.
	 
	 	 	Security Period means the period beginning on the date of this Deed and ending on the
Discharge Date.
	 
	 	 	Security Trust Deed means the Security Trust Deed dated on or about the date of this Deed
and entered into between, amongst others, the Collateral Agent, the Administrative Agent
and the Chargors.

	1.2	 	Construction

	 	(a)	 	Capitalised terms defined in the Credit Agreement have, unless expressly
defined in this Deed, the same meaning in this Deed.
	 
	 	(b)	 	an “agreement” includes any legally binding arrangement, agreement, contract,
deed or instrument (in each case whether oral or written);
	 
	 	(c)	 	an “amendment” includes any amendment, supplement, variation, waiver,
novation, modification, replacement or restatement (however fundamental) and “amend”
and “amended” shall be construed accordingly;

4

 

	 	(d)	 	“assets” includes properties, assets, businesses, undertakings, revenues and rights of
every kind (including uncalled share capital), present or future, actual or contingent,
and any interest in any of the above;
	 
	 	(e)	 	a “consent” includes an authorisation, permit, approval, consent, exemption, licence, order,
filing, registration, recording, notarisation, permission or waiver;
	 
	 	(f)	 	references to an Event of Default being “continuing” means that such Event of Default has
occurred or arisen and has not been expressly waived in writing by the by the Collateral Agent
or Administrative Agent (as appropriate);
	 
	 	(g)	 	a “disposal” includes any sale, transfer, grant, lease, licence or other disposal, whether
voluntary or involuntary and “dispose” will be construed accordingly;
	 
	 	(h)	 	“including” means including without limitation and “includes” and “included” shall be
construed accordingly;
	 
	 	(i)	 	“indebtedness” includes any obligation (whether incurred as principal, guarantor or surety
and whether present or future, actual or contingent) for the payment or repayment of money;
	 
	 	(j)	 	“losses” includes losses, actions, damages, payments, claims, proceedings, costs, demands,
expenses (including legal and other fees) and liabilities of any kind and “loss” shall be
construed accordingly;
	 
	 	(k)	 	a “person” includes any individual, trust, firm, fund, company, corporation, partnership,
joint venture, government, state or agency of a state or any undertaking or other association
(whether or not having separate legal personality) or any two or more of the foregoing; and
	 
	 	(l)	 	a “regulation” includes any regulation, rule, official directive, request or guideline
(whether or not having the force of law but if not having the force of law compliance with
which is customary) of any governmental or supranational body, agency, department or
regulatory, self-regulatory or other authority or organisation.
	 
	 	(m)	 	In this Deed, unless a contrary intention appears:

	 	(i)	 	a reference to any person includes a reference to that person’s permitted
successors, assignees and transferees and, in the case of the Collateral Agent and
the Administrative Agent, any person for the time being appointed as Collateral
Agent or Administrative Agent (as appropriate) in accordance with the Loan
Documents, and in the case of the Collateral Agent and any Receiver, any Delegate
of the Collateral Agent or Receiver (as appropriate);
	 
	 	(ii)	 	references to Clauses, Subclauses and Schedules are references to,
respectively, clauses and subclauses of and schedules to this Deed and references to
this Deed include its schedules;
	 
	 	(iii)	 	a reference to (or to any specified provision of) any agreement is to that
agreement (or that provision) as amended from time to time;

5

 

	 	(iv)	 	a reference to a statute, statutory instrument or provision of law
is to that statute, statutory instrument or provision of law, as it may
be applied, amended or re-enacted from time to time;
	 
	 	(v)	 	the index to and the headings in this Deed are for
convenience only and are to be ignored in construing this Deed;
	 
	 	(vi)	 	references to “with full title guarantee” are to be
construed as provided for in the Law of Property (Miscellaneous Provisions)
Act 1994; and
	 
	 	(vii)	 	words imparting the singular include the plural and vice versa.

	 	(n)	 	The term:
	 
	 	 	 	certificated has the meaning given to it in the Uncertificated Securities
Regulations 2001; and
	 
	 	 	 	clearance system means a person whose business is or includes the provision of
clearance services or security accounts or any nominee or depository for that
person.

	 	(o)	 	Any covenant of a Chargor under this Deed (other than a payment obligation)
remains in force during the Security Period and is given for the benefit of each
Secured Party.
	 
	 	(p)	 	The terms of the other Loan Documents and of any side letters between any
Parties in relation to any Loan Document (as the case may be) are incorporated in
this Deed to the extent required to ensure that any purported disposition of any
freehold or leasehold property contained in this Deed is a valid disposition in
accordance with section 2(1) of the Law of Property (Miscellaneous Provisions) Act
1989.
	 
	 	(q)	 	Without prejudice to any other provision of this Deed, the Collateral Agent
shall be entitled to retain this Deed and not to release any of the Security Assets
if the Collateral Agent, acting reasonably, considers that an amount paid to a
Secured Party under a Loan Document is capable of being avoided or otherwise set
aside on the liquidation or administration of the payer or otherwise, and any amount
so paid will not be considered to have been irrevocably paid for the purposes of
this Deed.
	 
	 	(r)	 	Unless the context otherwise requires, a reference to a Security Asset or
any type or description of a Security Asset includes:

	 	(i)	 	any part of that Security Asset; and
	 
	 	(ii)	 	any present and future assets of that type.

	1.3	 	Third Party Rights

	 	(a)	 	Unless expressly provided to the contrary in this Deed, a person who is not a
party to this Deed may not enforce any of its terms under the Contracts (Rights of
Third Parties) Act 1999.
	 
	 	(b)	 	Notwithstanding any term of this Deed, the consent of any third party is not
required to rescind, vary, amend or terminate this Deed at any time.

6

 

	1.4	 	Intercreditor Agreement Governs
	 
	 	 	NOTWITHSTANDING ANYTHING HEREIN TO THE CONTRARY, THE SECURITY INTERESTS GRANTED TO THE
COLLATERAL AGENT, FOR THE BENEFIT OF THE SECURED PARTIES, PURSUANT TO THIS AGREEMENT AND
THE EXERCISE OF ANY RIGHT OR REMEDY BY THE COLLATERAL AGENT OR ANY RECIEVER OR OTHER
SECURED PARTIES HEREUNDER ARE SUBJECT TO THE PROVISIONS OF THE INTERCREDITOR AGREEMENT. IN
THE EVENT OF ANY CONFLICT OR INCONSISTENCY BETWEEN THE PROVISIONS OF THE INTERCREDITOR
AGREEMENT AND THIS AGREEMENT, THE PROVISIONS OF THE INTERCREDITOR AGREEMENT SHALL GOVERN
AND CONTROL.

	2.	 	GUARANTEE
	 
	2.1	 	Guarantee
	 
	 	 	Each Chargor irrevocably and unconditionally jointly and severally:

	 	(i)	 	guarantees as principal obligor to the Collateral Agent
due and punctual performance by each Loan Party of all of the Secured
Obligations now or in the future due, owing or incurred by it;
	 
	 	(ii)	 	undertakes with the Collateral Agent that whenever another
Loan Party does not pay or discharge any Secured Obligation now or in the
future due, owing or incurred by that Loan Party, it shall immediately on
the Collateral Agent’s written demand pay or discharge such Secured
Obligation as if it was the principal obligor; and
	 
	 	(iii)	 	indemnifies the Collateral Agent immediately on written
demand against any cost, loss or liability suffered by the Collateral Agent
or other Secured Party if any obligation guaranteed by it is or becomes
unenforceable, invalid or illegal. The amount of the cost, loss or liability
shall be equal to the amount which the Collateral Agent or other Secured
Party would otherwise have been entitled to recover.

	2.2	 	Continuing Guarantee
	 
	 	 	This guarantee is a continuing guarantee and will extend to the ultimate balance of sums
payable by any Loan Party under the Loan Documents, regardless of any intermediate
payment or discharge in whole or in part.
	 
	2.3	 	Reinstatement
	 
	 	 	If any payment by a Loan Party or any discharge given by the Collateral Agent or Secured
Party (whether in respect of the obligations of any Loan Party or any security for those
obligations or otherwise) is avoided or reduced as a result of insolvency or any similar
event:

	 	(a)	 	the liability of each Loan Party shall continue as if the payment, discharge,
avoidance or reduction had not occurred; and
	 
	 	(b)	 	the Collateral Agent and each other Secured Party shall be entitled to
recover the value or amount of that security or payment from each Loan Party, as if
the payment, discharge, avoidance or reduction had not occurred.

7

 

	2.4	 	Waiver of defences
	 
	 	 	The obligations of each Chargor under this Clause 2 (Guarantee) will not be affected by an
act, omission, matter or thing which, but for this Clause 2 (Guarantee), would reduce,
release or prejudice any of its obligations under this Clause 2 (Guarantee) (without
limitation and whether or not known to it or any Secured Party) including:

	 	(i)	 	any time, waiver or consent granted to, or composition
with, any Loan Party or other person;
	 
	 	(ii)	 	the release of any other Loan Party or any other person
under the terms of any composition or arrangement with any creditor of any
member of the Group;
	 
	 	(iii)	 	the taking, variation, compromise, exchange, renewal or
release of, or refusal or neglect to perfect, take up or enforce, any rights
against, or security over assets of, any Loan Party or other person or any
non-presentation or non-observance of any formality or other requirement in
respect of any instrument or any failure to realise the full value of any
security;
	 
	 	(iv)	 	any incapacity or lack of power, authority or legal
personality of or dissolution or change in the members or status of a Loan
Party or any other person;
	 
	 	(v)	 	any amendment, novation, supplement, extension (whether of
maturity or otherwise) or restatement (in each case, however fundamental and
of whatsoever nature) or replacement of a Loan Document or any other
document or security;
	 
	 	(vi)	 	any unenforceability, illegality or invalidity of any
obligation of any person under any Loan Document or any other document or
security; or
	 
	 	(vii)	 	any insolvency or similar proceedings.

	2.5	 	Demands

	 	(a)	 	The making of one demand under Clause 2.1 (Guarantee) shall not preclude the
Collateral Agent from making any further demands.
	 
	 	(b)	 	Any delay of the Collateral Agent in making a demand under Clause 2.1
(Guarantee) shall not be treated as a waiver of its rights to make such demand.

	2.6	 	Chargor Intent
	 
	 	 	Without prejudice to the generality of Clause 2.4 (Waiver of Defences), each Chargor
expressly confirms that it intends that this guarantee shall extend from time to time to
any (however fundamental) variation, increase, extension or addition of or to any of the
Loan Documents and/or any facility or amount made available under any of the Loan
Documents for the purposes of or in connection with any of the following: business
acquisitions of any nature; increasing working capital; enabling investor distributions
to be made; carrying out restructurings; refinancing existing facilities; refinancing any
other indebtedness; making facilities available to new borrowers; any other variation or
extension of the purposes for which any such facility or amount might be made available

8

 

	 	 	from time to time; and any fees, costs and/or expenses associated with any of the
foregoing.
	 
	2.7	 	Immediate recourse
	 
	 	 	Each Chargor waives any right it may have of first requiring the Collateral Agent or any
Secured Party (or any trustee or agent on its behalf) to proceed against or enforce any
other rights or security or claim payment from any person before claiming from that
Chargor under this Clause 2 (Guarantee). This waiver applies irrespective of any law or
any provision of a Loan Document to the contrary.
	 
	2.8	 	Deferral of Chargors’ rights

	 	(a)	 	Until all amounts which may be or become payable by the Loan Parties under or
in connection with the Loan Documents have been irrevocably paid in full and unless
the Collateral Agent otherwise directs (in which case it shall take such action as it
is directed), no Chargor will exercise any rights which it may have by reason of
performance by it of its obligations under the Loan Documents:

	 	(i)	 	to be indemnified by a Loan Party;
	 
	 	(ii)	 	to claim any contribution from any other Chargor of any
Loan Party’s obligations under the Loan Documents; and/or
	 
	 	(iii)	 	to take the benefit (in whole or in part and whether by
way of subrogation or otherwise) of any rights of any Secured Party under
the Loan Documents or of any other guarantee or security taken pursuant to,
or in connection with, the Loan Documents by any Secured Party.

	 	(b)	 	If a Chargor receives any benefit, payment or distribution in relation to
such rights it shall hold that benefit, payment or distribution to the extent
necessary to enable all amounts which may be or become payable to the Secured Parties
by the Loan Parties under or in connection with the Loan Documents to be repaid in
full on trust for the Secured Parties and shall promptly pay or transfer the same to
the Collateral Agent or as the Collateral Agent may direct.

	2.9	 	Additional security
	 
	 	 	This guarantee is in addition to and is not in any way prejudiced by any other guarantee
or security now or subsequently held by any Secured Party.
	 
	2.10	 	Credit Agreement
	 
	 	 	The provisions of Sections 2.12 (with respect to Taxes), 2.15, 2.20, 2.22, 2.23 and 7.10
of the Credit Agreement are hereby incorporated, mutatis mutandi, and shall apply to this
Agreement, the Chargors, the Lenders, the Collateral Agent and the Administrative Agent
as if set forth herein.

	3.	 	CREATION OF SECURITY
	 
	3.1	 	General

	 	(a)	 	All this Security:

	 	(i)	 	is created in favour of the Collateral Agent;

9

 

	 	(ii)	 	is security for the payment, discharge and performance of all the
Secured Obligations; and
	 
	 	(iii)	 	is made with full title guarantee in accordance with the
Law of Property (Miscellaneous Provisions) Act 1994.

	 	(b)	 	If a Chargor assigns or charges an agreement under this Deed and the
assignment or charge breaches a term of that agreement because a third party’s consent
has not been obtained:

	 	(i)	 	the Chargor must notify the Collateral Agent immediately;
	 
	 	(ii)	 	unless the Collateral Agent otherwise requires, the
Chargor must, and each other Chargor must ensure that the Chargor will, use
all reasonable endeavours to obtain the consent as soon as practicable; and
	 
	 	(iii)	 	the Chargor must promptly supply to the Collateral Agent
a copy of the consent obtained by it.

	 	(c)	 	Each Chargor hereby acknowledges that all assets, right, interests and
benefits which are now or in the future granted to the Collateral Agent pursuant to
this Clause 3 or otherwise mortgaged, charged, assigned or otherwise granted to it
under this Deed (or any other document in connection herewith) and all other rights,
powers and discretions granted to or conferred upon the Collateral Agent under this
Deed or the Loan Documents (or any other document in connection therewith) shall be
held by the Collateral Agent on trust for the Secured Parties from time to time in
accordance with the provisions of the Security Trust Deed.
	 
	 	(d)	 	The fact that no or incomplete details of any Security Asset are inserted in
Schedule 1 (Security Assets) or in the schedule to any Deed of Accession (if any) by
which any Chargor became party to this Deed does not affect the validity or
enforceability of this Security.

	3.2	 	Land

	 	(a)	 	Each Chargor charges:

	 	(i)	 	by way of a legal mortgage all estates or interests in any
freehold or leasehold property owned by it (save for the Excluded Real
Property) and all rights under any licence or other agreement or document
which gives that Chargor a right to occupy or use property; this includes any
specified in Part I of Schedule 1 (Security Assets) opposite its name or in
Part 1 of the schedule to any Deed of Accession by which it became party to
this Deed; and
	 
	 	(ii)	 	(to the extent that they are not the subject of a mortgage
under sub-paragraph (i) above) by way of fixed charge all estates or
interests in any freehold or leasehold property owned by it (save for the
Excluded Real Property) and all rights under any licence or other agreement
or document which gives that Chargor a right to occupy or use property.

	 	(b)	 	A reference in this Deed to any freehold or leasehold property includes:

10

 

	 	(i)	 	all buildings, erections, fixtures and fittings (including trade
fixtures and fittings) and fixed plant and machinery on that property
owned by the relevant Chargor; and
	 
	 	(ii)	 	the benefit of any covenants for title given or entered
into by any predecessor in title of the relevant Chargor in respect of that
property and any moneys paid or payable in respect of those covenants.

	3.3	 	Investments

	 	(a)	 	Each Chargor charges:

	 	(i)	 	by way of a first legal mortgage the Charged Shares; this
includes any Charged Shares specified in Part 2 of Schedule 1 (Security
Assets) opposite its name or in Part 2 of the schedule to any Deed of
Accession by which it became party to this Deed; and
	 
	 	(ii)	 	(to the extent that they are not the subject of a mortgage
under sub-paragraph (i) above) by way of a fixed charge its interest in all
shares, stocks, debentures, bonds, warrants, coupons or other securities and
investments (including all Cash Equivalents) owned by it or held by any
nominee on its behalf.

	 	(b)	 	A reference in this Deed to any share, stock, debenture, bond, warrant,
coupon or other security or investment includes:

	 	(i)	 	any dividend, interest or other distribution paid or payable;
	 
	 	(ii)	 	any right, money or property accruing, derived, incidental
or offered at any time by way of redemption, substitution, exchange, bonus
or preference, under option rights or otherwise;
	 
	 	(iii)	 	any right against any clearance system;
	 
	 	(iv)	 	any Related Rights; and
	 
	 	(v)	 	any right under any custodian or other agreement,

	 	 	in relation to that share, stock, debenture, bond, warrant, coupon or other security or
investment.
	 
	3.4	 	Plant and machinery
	 
	 	 	Each Chargor charges by way of a fixed charge all plant, machinery, computers, office
equipment or vehicles or interest specified in Part 3 of Schedule 1 (Security Assets)
opposite its name or in Part 3 of the schedule to any Deed of Accession by which it
became party to this Deed and any and all other plant, machinery, computers, office
equipment or vehicles (or interest therein) owned by it.
	 
	3.5	 	Credit balances
	 
	 	 	Each Chargor charges by way of a fixed charge all of its rights in respect of each amount
standing to the credit of each account with any person, including its Security Accounts
and the debt represented by that account.

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	3.6	 	Book debts etc.
	 
	 	 	Each Chargor charges by way of a fixed charge:

	 	(a)	 	all of its book and other debts;
	 
	 	(b)	 	all other moneys due and owing to it; and
	 
	 	(c)	 	the benefit of all rights, securities and guarantees of any nature enjoyed
or held by it in relation to any item under paragraph (a) or (b) above.

	3.7	 	Insurance Policies

	 	(a)	 	Each Chargor assigns absolutely, subject to a proviso for re-assignment on
redemption, all amounts payable to it under or in connection with each of its
Insurance Policies and all of its rights in connection with those amounts.
	 
	 	(b)	 	To the extent that they are not effectively assigned under paragraph (a)
above, each Chargor charges by way of fixed charge all amounts and rights described
in paragraph (a) above.
	 
	 	(c)	 	A reference in this Subclause to any amounts excludes all amounts received
or receivable under or in connection with any third party liability Insurance and
required to settle a liability of a Loan Party to a third party.

	3.8	 	Other contracts

	 	(a)	 	Each Chargor assigns absolutely, subject to a proviso for re-assignment on
redemption, all of its rights in respect of its Primary Contracts.
	 
	 	(b)	 	Without prejudice to the obligations of the Chargor under Clause 3.1(b), to
the extent that any such right described in paragraph (a) above is not assignable or
capable of assignment, the assignment of that right purported to be effected by
paragraph (a) shall operate as an assignment of any damages, compensation,
remuneration, profit, rent or income which that Chargor may derive from that right or
be awarded or entitled to in respect of that right.
	 
	 	(c)	 	To the extent that they do not fall within any other Subclause of this Clause
and are not effectively assigned under paragraph (a) or (b) above, each Chargor
charges by way of fixed charge all of its rights under each agreement and document to
which it is a party, including, without limitation, its Secondary Contracts.

	3.9	 	Intellectual property
	 
	 	 	Each Chargor charges by way of a fixed charge all of its rights in respect of any
Intellectual Property; this includes any specified in Part 5 of
Schedule 1 (Security
Assets) opposite its name or in Part 5 of the schedule to any Deed of Accession by which
it became party to this Deed.

	3.10	 	Miscellaneous
	 
	 	 	Each Chargor charges by way of a fixed charge:

	 	(a)	 	any beneficial interest, claim or entitlement it has to any assets of
any pension fund;

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	 	(b)	 	its goodwill;
	 
	 	(c)	 	the benefit of any authorisation (statutory or otherwise) held in connection
with its business or the use of any Security Asset;
	 
	 	(d)	 	the right to recover and receive compensation which may be payable to it in
respect of any authorisation referred to in paragraph (c) above; and
	 
	 	(e)	 	its uncalled capital.

	3.11	 	Floating charge

	 	(a)	 	Each Chargor charges by way of a floating charge all of its assets whatsoever
and wheresoever not otherwise effectively mortgaged, charged or assigned under this
Deed.
	 
	 	(b)	 	Except as provided below, the Collateral Agent may by notice to a Chargor
convert the floating charge created by that Chargor under this Deed into a fixed
charge as regards any of that Chargor’s assets specified in that notice, if:

	 	(i)	 	an Event of Default is continuing;
	 
	 	(ii)	 	the Collateral Agent considers those assets to be in danger
of being seized or sold under any form of distress, attachment, execution or
other legal process or to be otherwise in jeopardy; or
	 
	 	(iii)	 	that Chargor fails to comply, or takes or threatens to take
any action which, in the reasonable opinion of the Collateral Agent, is
likely to result in it failing to comply with its obligations under paragraph
(a) of Clause 5 (Restrictions on dealing).

	 	(c)	 	The floating charge created under this Deed may not be converted into a fixed
charge solely by reason of:

	 	(i)	 	the obtaining of a moratorium; or
	 
	 	(ii)	 	anything done with a view to obtaining a moratorium,

	 
	 	under section 1A of the Insolvency Act 1986.

	 	(d)	 	The floating charge created under this Deed will (in addition to the
circumstances in which the same will occur under general law) automatically convert
into a fixed charge over all of each Chargor’s assets:

	 	(i)	 	if an administrator is appointed or the Collateral Agent
receives notice of an intention to appoint an administrator; or
	 
	 	(ii)	 	on the convening of any meeting of the members of that
Chargor to consider a resolution to wind that Chargor up (or not to wind
that Chargor up).

	 	(e)	 	The floating charge created under this Deed is a qualifying floating charge for
the purpose of paragraph 14 of Schedule Bl to the Insolvency Act 1986.
	 
	 	(f)	 	The giving by the Collateral Agent of a notice under paragraph (b) above in
relation to any asset of a Chargor will not be construed as a waiver or

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	 	 	 	abandonment of the Collateral Agent’s rights to give any other notice in respect
of any other asset or of any other right of any other Secured Party under this
Deed or any other Loan Document.
	 
	 	(g)	 	Any charge which has been converted into a fixed charge in accordance with
paragraphs (b) or (d) above may, by notice in writing given at any time by the
Collateral Agent to the relevant Chargor, be reconverted into a floating charge in
relation to the Security Assets specified in such notice.

	4.	 	REPRESENTATIONS-GENERAL
	 
	4.1	 	Nature of security
	 
	 	 	Each Chargor represents and warrants to each Secured Party
that:

	 	(a)	 	this Deed creates those Security Interests it purports to create (save that
the legal mortgage created in Clause 3.3(a)(i) will take effect in equity until such
time as the Collateral Agent exercises its discretion under Clause 7.2(b)) and is not
liable to be avoided or otherwise set aside on its liquidation or administration or
otherwise;
	 
	 	(b)	 	this Deed is its legal, valid and binding obligation and is enforceable
against it in accordance with its terms;
	 
	 	(c)	 	no authorisation, approval or other action by, and no notice to or filing
with, any governmental authority or regulatory body is required for
either:

	 	(i)	 	the pledge or grant by the Chargor of the Security
purported to be created in favour of the Collateral Agent under this Deed;
or
	 
	 	(ii)	 	the exercise by the Collateral Agent of any rights or
remedies in respect of the Security Assets (whether specifically granted or
created under this Deed or created or provided for by applicable law); and

	 	(d)	 	all actions and consents, including all filings, notices, registrations and
recordings necessary for the exercise by the Collateral Agent of the voting or other
rights provided for in this Deed or the exercise of remedies in respect of the
Security Assets have been made or will be obtained within periods required to perfect
the Security as against any third party.

	4.2	 	Times for making representations and warranties

	 	(a)	 	The representations and warranties set out in this Deed (including in this
Clause) are made by each Chargor.
	 
	 	(b)	 	Each representation and warranty under this Deed is deemed to be repeated by:

	 	(i)	 	each Chargor which becomes party to this Deed of Accession,
on the date on which that Chargor becomes a Chargor; and
	 
	 	(ii)	 	each Chargor on each date during the Security Period.

	 	(c)	 	When a representation and warranty is deemed to be repeated, it is deemed to
be made by reference to the circumstances existing at the time of repetition.

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	5.	 	RESTRICTIONS ON DEALINGS
	 
	 	 	No Chargor may:

	 	(a)	 	create or permit to subsist any Security Interest on any of its assets; or
	 
	 	(b)	 	either in a single transaction or in a series of transactions and whether
related or not and whether voluntarily or involuntarily sell, lease, transfer, redeem
or otherwise dispose of all or any part of its assets,

	 	 	unless permitted under the Credit Agreement
	 
	6.	 	LAND
	 
	6.1	 	Information for Report on Title
	 
	 	 	Each Chargor represents and warrants to each Secured Party that:

	 	(a)	 	the information supplied by it or on its behalf to the lawyers who prepared
any Report on Title relating to any of its Mortgaged Property for the purpose of that
Report on Title was true in all material respects at the date it was expressed to be
given; and
	 
	 	(b)	 	the information referred to in paragraph (a) above was at the date it was
expressed to be given complete and did not omit any information which, if disclosed
would make that information untrue or misleading in any material respect;
	 
	 	(c)	 	the Excluded Leasehold Properties are rack rent leases granted to a Chargor
at a rent without a fine or premium from time to time.

	6.2	 	Title
	 
	 	 	Each Chargor represents and warrants to each Secured Party that except as disclosed in any
Report on Title relating to any of its Mortgaged Property:

	 	(a)	 	it is the legal and beneficial owner of its Mortgaged Property;
	 
	 	(b)	 	no breach of any law, regulation or covenant is outstanding which affects or
would be reasonably likely to affect materially the value, saleability or use of its
Mortgaged Property;
	 
	 	(c)	 	there are no covenants, agreements, stipulations, reservations, conditions,
interests, rights or other matters whatsoever affecting its Mortgaged Property which
conflict with its present use or adversely affect the value, saleability or use of any
of the Mortgaged Property, in each case to any material extent;
	 
	 	(d)	 	nothing has arisen or has been created or is subsisting which would be an
overriding interest or an unregistered interest which overrides first registration or
registered dispositions over its Mortgaged Property and which would be reasonably
likely to affect materially its value, saleability or use;
	 
	 	(e)	 	all facilities (Including access) necessary for the enjoyment and use of its
Mortgaged Property (including those necessary for the carrying on of its business at
the Mortgaged Property) are enjoyed by that Mortgaged Property and none of those
facilities are on terms entitling any person to terminate or curtail

15

 

	 	 	 	its use or on terms which conflict with or restrict its use, where the lack of
those facilities would be reasonably likely to affect materially its value,
saleability or use;
	 
	 	(f)	 	it has received no notice of any adverse claims by any person in respect of
its Mortgaged Property which if adversely determined would or would be reasonably
likely to materially adversely affect the value, saleability or use of any of its
Mortgaged Property, nor has any acknowledgement of such been given to any person in
respect of its Mortgaged Property; and
	 
	 	(g)	 	its Mortgaged Property is held by it free from any Security Interest (other
than as permitted by the Credit Agreement) or any lease or licence which would be
reasonably likely to affect materially its value, saleability or use.

	6.3	 	Repair
	 
	 	 	Each Chargor must keep:

	 	(a)	 	its Premises in good and substantial repair and condition; and
	 
	 	(b)	 	its Fixtures in a good state of repair and in good working
order and condition.

	6.4	 	Compliance with leases and covenants
	 
	 	 	Each Chargor must:

	 	(a)	 	perform all the material terms on its part contained in any lease, agreement
for lease, licence or other agreement or document which gives that Chargor a right to
occupy or use property comprised in its Mortgaged Property;
	 
	 	(b)	 	not do or allow to be done any act as a result of which any lease comprised
in its Mortgaged Property may become liable to forfeiture or otherwise be terminated;
and
	 
	 	(c)	 	duly and punctually comply with all material covenants and stipulations
affecting the Mortgaged Property or the facilities (including access) necessary for
the enjoyment and use of the Mortgaged Property and indemnify each Secured Party in
respect of any breach of those covenants and stipulations.

	6.5	 	Acquisitions
	 
	 	 	If a Chargor acquires any freehold or leasehold property after the date of this Deed (save
for Excluded Real Property), it must:

	 	(a)	 	notify the Collateral Agent immediately;
	 
	 	(b)	 	immediately on request by the Collateral Agent and at the cost of that Chargor,
execute and deliver to the Collateral Agent a legal mortgage in favour of the
Collateral Agent of that property in any form (consistent with, and no more onerous
than, this Deed) which the Collateral Agent may require;
	 
	 	(c)	 	if the title to that freehold or leasehold property is registered at the Land
Registry or required to be so registered, give the Land Registry written notice of this
Security; and

16

 

	 	(d)	 	if applicable, ensure that this Security is correctly noted in the
Register of Title against that title at the Land Registry.

	6.6	 	Notices
	 
	 	 	Each Chargor must, within 14 days after the receipt by it of any application,
requirement, order or notice served or given by any public or local or any other
authority with respect to its Mortgaged Property (or any part of it) which would or would
be reasonably likely to have a material adverse effect on the value, saleability or use
of any of the Mortgaged Property:

	 	(a)	 	deliver a copy to the Collateral Agent; and
	 
	 	(b)	 	inform the Collateral Agent of the steps taken or proposed to be taken to
comply with the relevant requirement.

	6.7	 	Leases
	 
	 	 	No Chargor may in respect of its Mortgaged Property (or any part of it), unless expressly
permitted under the Credit Agreement

	 	(a)	 	grant or agree to grant (whether in exercise or independently of any
statutory power) any lease or tenancy;
	 
	 	(b)	 	agree to any amendment or waiver or surrender of any lease or tenancy;
	 
	 	(c)	 	commence any forfeiture proceedings in respect of any lease or tenancy;
	 
	 	(d)	 	confer upon any person any contractual licence or right to occupy;
	 
	 	(e)	 	consent to any assignment of any tenant’s interest under any lease or tenancy;
	 
	 	(f)	 	agree to any rent reviews in respect of any lease or tenancy; or
	 
	 	(g)	 	serve any notice on any former tenant under any lease or tenancy (or any
guarantor of that former tenant) which would entitle it to a new lease or tenancy.

	6.8	 	The Land Registry

	 	(a)	 	Each Chargor consents to a restriction in the following terms being entered
into on the Register of Title relating to any Mortgaged Property registered at the
Land Registry:
	 
	 	 	 	“No disposition of the registered estate by the proprietor of the registered
estate is to be registered without a written consent signed by the proprietor for
the time being of the security agreement referred to in the charges register
dated [     ] in favour of [     ] (as agent and trustee for the Secured Parties referred
to in that security agreement) or its conveyancer.”
	 
	 	(b)	 	Each Chargor applies to the Chief Land Registrar for a notice in the
following terms to be entered on the Register of Title relating to any Mortgaged
Property registered at the Land Registry:
	 
	 	 	 	“The Lenders under a Credit Agreement dated as of [•], 2007, among Novelis Inc.,
as Canadian Borrower, Novelis Corporation, Novelis Pae Corporation Eurofoil,
Inc., as U.S. Borrowers, Novelis UK Ltd, as U.K. Borrower, Novelis

17

 

	 	 	 	AG, as Swiss Borrower, AV ALUMINUM INC., as Parent Guarantor, and the Other
Guarantors Party thereto, the Lenders Party thereto UBS AG, Stamford Branch, as
U.S. Issuing Bank, Swingline Lender, Administrative Agent and Collateral Agent,
Canadian Issuing Bank and Canadian Administrative Agent, and ABN AMRO
Incorporated, UBS Securities LLC, as Joint Lead Arrangers and Joint Bookmanagers
are under an obligation (subject to the terms of that Credit Agreement) to [the
Chargor] to make further advances and the security agreement referred to in the
charges register dated [     ] in favour of [     ] (as agent and trustee for the Secured
Parties referred to in that security agreement) secures those further advances.”

	6.9	 	Deposit of title deeds
	 
	 	 	Each Chargor must deposit with the Collateral Agent all deeds and documents of title
relating to its Mortgaged Property and all local land charges, land charges and Land
Registry search certificates and similar documents received by it or on its behalf.
	 
	6.10	 	Development
	 
	 	 	No Chargor may, unless expressly permitted under the Credit
Agreement:

	 	(a)	 	make or permit others to make any application for planning permission in
respect of any part of the Mortgaged Property; or
	 
	 	(b)	 	carry out or permit to be carried out on any part of the Mortgaged Property
any development for which the permission of the local planning authority is required,

	 	 	except as part of carrying on its principal business where it would not or would not be
reasonably likely to have a material adverse effect on the value, saleability or use of
the Mortgaged Property or the carrying on of the principal business of that Chargor.
	 
	6.11	 	Investigation of title
	 
	 	 	Each Chargor must grant the Collateral Agent or its lawyers on request all reasonable
facilities within the power of that Chargor to enable the Collateral Agent or its lawyers
(at the expense of that Chargor) after this Security has become enforceable to:

	 	(a)	 	carry out investigations of title to the Mortgaged Property; and
	 
	 	(b)	 	make such enquiries in relation to any part of the Mortgaged Property as a
prudent mortgagee might carry out

	6.12	 	Report on Title
	 
	 	 	Each Chargor must, as soon as practicable after a request by the Collateral Agent at a
time when an Event of Default is continuing, supply the Collateral Agent with a Report on
Title of that Chargor to its Mortgaged Property concerning those items which may properly
be sought to be covered by a prudent mortgagee in a lawyer’s report of this nature.

18

 

	6.13	 	Power to remedy
	 
	 	 	If a Chargor fails to perform any covenant or stipulation or any term of this Deed
affecting its Mortgaged Property, that Chargor must allow the Collateral Agent or its
agents and contractors:

	 	(a)	 	to enter any part of its Mortgaged Property;
	 
	 	(b)	 	to comply with or object to any notice served on that Chargor in respect of
its Mortgaged Property; and
	 
	 	(c)	 	to take any action as the Collateral Agent may reasonably consider necessary
or desirable to prevent or remedy any breach of any such covenant, stipulation or term
or to comply with or object to any such notice.

	 	 	That Chargor must immediately on request by the Collateral Agent pay the costs and
expenses of the Collateral Agent or its agents and contractors incurred in connection with
any action taken by it under this Subclause.
	 
	6.14	 	Unregistered Property
	 
	 	 	Each Chargor shall use reasonable endeavours to:

	 	(a)	 	to provide a completed and signed Land Registry application form to complete
the first registration of any unregistered real properties and registration of this
Security at the Land Registry: and
	 
	 	(b)	 	answer any requisitions raised by the Land Registry,

	 	 	including in each case, without limitation, instruction of solicitors in these regards and
providing statutory declarations in respect of any title requisitions raised by the Land
Registry.
	 
	7.	 	INVESTMENTS
	 
	7.1	 	Investments
	 
	 	 	Each Chargor represents and warrants to each Secured Party that:

	 	(a)	 	its Investments are duly authorised, validly issued and fully paid;
	 
	 	(b)	 	its Investments are not subject to any Security Interest (other than as
permitted by the Credit Agreement), any option to purchase or similar right;
	 
	 	(c)	 	it is the sole legal and beneficial owner of its Investments (save for any
Investments acquired by or issued to that Chargor after the date of this Deed that are
held by any nominee on its behalf or any Investments transferred to the Collateral
Agent or its nominee pursuant to this Deed);
	 
	 	(d)	 	each Charged Company is a company incorporated with limited liability;
	 
	 	(e)	 	the constitutional documents of each Charged Company do not and could not
restrict or inhibit any transfer of those shares on creation or enforcement of this
Security; and

19

 

	 	(f)	 	there are no agreements in force which provide for the issue or allotment of,
or grant any person the right to call for the issue or allotment of, any share or
loan capital of any Charged Company (including any option or right of pre-emption
or conversion).

	7.2	 	Certificated Investments

	 	(a)	 	Each Chargor must:

	 	(i)	 	deposit with the Collateral Agent, or as the Collateral
Agent may direct, any bearer instrument, share certificate or other document
of title or evidence of ownership in relation to any Investment, immediately
in respect of any Investment subject to this Security on the date of this
Deed and thereafter immediately following the acquisition by, or the issue
to, that Chargor of any certificated Investment (unless the same is required
for registering any transfer, in which case the relevant Chargor must
deposit the same immediately after such registration is completed); and
	 
	 	(ii)	 	immediately take any action and execute and deliver to the
Collateral Agent any share transfer or other document which may be requested
by the Collateral Agent in order to enable the transferee to be registered
as the owner or otherwise obtain a legal title to that Investment; this
includes:

	 	(1)	 	delivering executed and (unless exempt from
stamp duty), pre-stamped share transfers in favour of the Collateral
Agent or any of its nominees as transferee or, if the Collateral
Agent so directs, with the transferee left blank; and
	 
	 	(2)	 	procuring that those share transfers are
registered by the Charged Company in which the Investments are held
in the share register of that Charged Company and that share
certificates in the name of the transferee are delivered to the
Collateral Agent.

	 	(b)	 	The Collateral Agent may, at any time, complete the instruments of transfer
on behalf of the Chargor in favour of itself or such other person as it shall select.

	7.3	 	Changes to rights
	 
	 	 	No Chargor may (except to the extent permitted by the Credit Agreement and the
Intercreditor Agreement) take or allow the taking of any action on its behalf which may
result in the rights attaching to any of its Investments being altered or further shares
being issued.
	 
	7.4	 	Calls

	 	(a)	 	Each Chargor must pay all calls and other payments due and payable in respect
of any of its Investments.
	 
	 	(b)	 	If a Chargor fails to do so, the Collateral Agent may (at its discretion) pay
those calls or other payments on behalf of that Chargor. That Chargor must

20

 

	 	 	 	immediately on request reimburse the Collateral Agent for any payment made by the
Collateral Agent under this Subclause and, pending reimbursement, that payment
will constitute part of the Secured Obligations.

	7.5	 	Other obligations in respect of Investments

	 	(a)	 	Each Chargor must comply with all requests for information which is within
its knowledge and which it is required to comply with by law (including section 212 of
the Companies Act 1985) or under the constitutional documents relating to any of its
Investments. If a Chargor fails to do so, the Collateral Agent may elect to provide
any information which it may have on behalf of that Chargor.
	 
	 	(b)	 	Each Chargor must promptly supply a copy to the Collateral Agent of any
information referred to in sub-paragraph (a) above.
	 
	 	(c)	 	It is acknowledged and agreed that notwithstanding anything to the contrary
contained in this Deed, each Chargor shall remain liable to observe and perform all of
the conditions and obligations assumed by it in respect of any of its Investments.
	 
	 	(d)	 	No Secured Party will be required in any manner
to:

	 	(i)	 	perform or fulfil any obligation of a
Chargor;
	 
	 	(ii)	 	make any payment;
	 
	 	(iii)	 	make any enquiry as to the nature or sufficiency of any
payment received by it or a Chargor;
	 
	 	(iv)	 	present or file any claim or take any other action to
collect or enforce the payment of any amount; or
	 
	 	(v)	 	take any action in connection with the taking up of any (or
any offer of any) stocks, shares, rights, monies or other property paid,
distributed, accruing or offered at any time by way of interest, dividend,
redemption, bonus, rights, preference, option, warrant or otherwise,

	 	 	in respect of any Investment.
	 
	7.6	 	Voting rights

	 	(a)	 	Unless and until the service of a notice by the Collateral Agent or an Event
of Default is continuing, each Chargor may continue to exercise the voting rights,
powers and other rights in respect of its Investments, provided that (x) it shall
deliver copies of any minutes shareholder meeting in respect of the Investments to
the Collateral Agent promptly upon receipt, and (y) it shall not exercise such voting
rights, powers and other rights in a manner which would result in, or otherwise
permit or agree to, (i) any variation of the rights attaching to or conferred by any
of the Investments which the Collateral Agent considers prejudicial to the interests
of the Secured Parties or which conflict or derogate from any Loan Documents or (ii)
any increase in the issued share capital of a Charged Company, which in the opinion
of the Collateral Agent would prejudice the value of, or the ability of the
Collateral Agent to realise, the security created by this Deed.

21

 

	 	(b)	 	Unless and until the service of a notice by the Collateral Agent or an Event
of Default is continuing, if the relevant Investments have been registered in the
name of the Collateral Agent or its nominee, the Collateral Agent (or that
nominee) must exercise the voting rights, powers and other rights in respect of
the Investments in any manner which the relevant Chargor may direct in writing.
The Collateral Agent (or that nominee) will execute any form of proxy or other
document which the relevant Chargor may reasonably require for this purpose.
	 
	 	(c)	 	Subject to the terms of the Credit Agreement and the Intercreditor Agreement,
unless and until the service of a notice by the Collateral Agent or an Event of
Default is continuing, all dividends or other income or distributions paid or payable
in relation to any Investments must be paid to the relevant Chargor. To achieve this:

	 	(i)	 	the Collateral Agent or its nominee will promptly execute
any dividend mandate necessary to ensure that payment is made direct to the
relevant Chargor;) or
	 
	 	(ii)	 	if payment is made directly to the Collateral Agent (or
its nominee) before the service of a notice by the Collateral Agent or at a
time when an Event of Default is not continuing, the Collateral Agent (or
that nominee) will promptly pay that amount to the relevant Chargor.

	 	(d)	 	Unless and until the service of a notice by the Collateral Agent or an Event
of Default is continuing, the Collateral Agent shall use its reasonable endeavours to
promptly forward to the relevant Chargor all material notices, correspondence and/or
other communication it receives in relation to the Investments.
	 
	 	(e)	 	Following the service of a notice by the Collateral Agent or so long as an
Event of Default is continuing, the Collateral Agent or its nominee may exercise or
refrain from exercising:

	 	(i)	 	any voting rights; and
	 
	 	(ii)	 	any other powers or rights which may be exercised by the
legal or beneficial owner of any Investment, any person who is the holder
of any Investment or otherwise

	 	 	in each case, in the name of the relevant Chargor, the registered holder or otherwise and
without any further consent or authority on the part of the relevant Chargor and
irrespective of any direction given by any Chargor.

	 	(f)	 	To the extent that the Investments remain registered in the names of the
Chargors, each Chargor irrevocably appoints the Collateral Agent or its nominee as
its proxy to exercise all voting rights in respect of those Investments following
the service of a notice by the Collateral Agent or so long as an Event of Default is
continuing.
	 
	 	(g)	 	Each Chargor must indemnify the Collateral Agent against any loss or
liability incurred by the Collateral Agent as a consequence of the Collateral Agent
acting in respect of its Investments on the direction of that Chargor.

	7.7	 	Clearance systems

	 	(a)	 	Each Chargor must, if so requested by the Collateral Agent:

22

 

	 	(i)	 	instruct any clearance system to transfer any Investment held by it
for that Chargor or its nominee to an account of the Collateral Agent or
its nominee with that clearance system; and
	 
	 	(ii)	 	take whatever action the Collateral Agent may request for
the dematerialisation or rematerialisation of any Investments held in a
clearance system.

	 	(b)	 	Without prejudice to the rest of this Subclause the Collateral Agent may,
at the expense of the relevant Chargor, take whatever action is required for the
dematerialisation or rematerialisation of the Investments as necessary.

	7.8	 	Custodian arrangements 
	 
	 	 	Each Chargor must:

	 	(a)	 	promptly give notice of this Deed to any custodian of any Investment in any
form which the Collateral Agent may reasonably require; and
	 
	 	(b)	 	use reasonable endeavours to ensure that the custodian acknowledges that
notice in any form which the Collateral Agent may reasonably require.

	8.	 	INTELLECTUAL PROPERTY
	 
	8.1	 	Representations
	 
	 	 	Each Chargor represents and warrants to each Secured Party that as at the date of this Deed
or, if later, the date it became a Party:

	 	(a)	 	all Intellectual Property which is material to its business is identified in
Part 5 of Schedule 1 (Security Assets) opposite its name or in Part 5 of the schedule
to any Deed of Accession by which it became party to this Deed; and
	 
	 	(b)	 	it is not aware of any circumstances relating to the validity, subsistence or
use of any of its Intellectual Property which could reasonably be expected to have a
Material Adverse Effect.

	8.2	 	Preservation

	 	(a)	 	Each Chargor must promptly, If requested to do so by the Collateral Agent,
sign or procure the signature of, and comply with all instructions of the Collateral
Agent in respect of, any document required to make entries in any public register of
Intellectual Property (including the United Kingdom Trade Marks Register) which either
record the existence of this Deed or the restrictions on disposal imposed by this
Deed.
	 
	 	(b)	 	No Chargor may, without the prior consent of the Collateral Agent or unless
permitted by the Credit Agreement:

	 	(i)	 	amend or waive or terminate, any of its rights in
respect of its Intellectual Property; or
	 
	 	(ii)	 	take any action which might jeopardise the existence or
enforceability of any of its rights in respect of its Intellectual Property.

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	9.	 	ACCOUNTS
	 
	9.1	 	Accounts

	 	(a)	 	Prior to the Revolving Credit Collateral Discharge Date, all Security
Accounts must be maintained in accordance with the terms of the Revolving Credit
Security Agreement.
	 
	 	(b)	 	Following the Revolving Credit Collateral Discharge Date, all Security
Accounts must be maintained at a branch of the Account Bank approved by the
Collateral Agent.

	9.2	 	Change of Account Bank
	 
	 	 	Following the Revolving Credit Collateral Discharge Date:

	 	(a)	 	Any Account Bank may be changed to another bank and additional banks may be
appointed as Account Banks if the Company and the Collateral Agent so agree;
	 
	 	(b)	 	Without prejudice to Clause 9.2 (a), a Chargor may only open an account with a
new Account Bank after the proposed new Account Bank agrees with the Collateral Agent
and the relevant Chargors, in a manner satisfactory to the Collateral Agent, to fulfil
the role of the Account Bank under this Deed:
	 
	 	(c)	 	If there is a change of Account Bank, the net amount (if any) standing to the
credit of the Security Accounts maintained with the old Account Bank will be
transferred to the corresponding Security Accounts maintained with the new Account
Bank Immediately upon the appointment taking effect and each Chargor and the
Collateral Agent hereby irrevocably gives all authorisations and instructions
necessary for any such transfer to be made:
	 
	 	(d)	 	Each Chargor:

	 	(i)	 	must take any action which the Collateral Agent may
require to facilitate a change of Account Bank in accordance with the
preceding provisions of Clause 9.2 and any transfer of credit balances
(including the execution of bank mandate forms); and
	 
	 	(ii)	 	irrevocably appoints the Collateral Agent as its attorney
to take any such action if that Chargor should fail to do so.
	 
	 	(iii)	 	No Chargor shall, during the subsistence of this Deed,
without the Collateral Agent’s prior consent, permit or agree to any
variation of the rights attaching to any Security Account or close any
Security Account.

	9.3	 	Book debts and receipts

	 	(a)	 	Bach Chargor must immediately deposit and direct their respective Account
Debtors to directly remit all payments on Accounts and all payments constituting
proceeds of Inventory or other Collateral (each term as defined in the Credit
Agreement) into a Security Account in accordance with Section 9.01 of the Revolving
Credit Agreement.

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	 	(b)	 	To the extent not deposited or remitted to a Security Account under Clause
9.3(a), each Chargor must get in and realise its:

	 	(i)	 	securities to the extent held by way of temporary investment;
	 
	 	(ii)	 	book and other debts and other moneys owed to it; and
	 
	 	(iii)	 	royalties, fees and income of any nature owed to it,

	 	 	 	in the ordinary course of its business and (prior to payment into a Security
Account under Clause 9.3(c)) hold the proceeds of the getting in and realisation:

	 	(i)	 	Prior to the Revolving Credit Collateral Discharge
Date on trust for the Revolving Credit Collateral Agent; and
	 
	 	(ii)	 	Following the Revolving Credit Collateral Discharge
Date, on trust for the Collateral Agent.

	 	(c)	 	Each Chargor must pay all the proceeds of the getting in and realisation
under Clause 9.3(b) into a Security Account as soon as practicable on receipt, except
to the extent that:

	 	(i)	 	Prior to the Revolving Credit Collateral Discharge Date
the Revolving Credit Collateral Agent otherwise agrees; and
	 
	 	(ii)	 	Following the Revolving Credit Collateral Discharge Date,
the Collateral Agent otherwise agrees.

	9.4	 	Withdrawals

	 	(a)	 	The Collateral Agent (or a Receiver) may (subject to the payment of any
claims having priority to this Security and subject to the Intercreditor Agreement)
withdraw amounts standing to the credit of any Security Account for application in
accordance with the Loan Documents.
	 
	 	(b)	 	No Chargor shall be entitled to receive, withdraw or otherwise transfer any
credit balance from time to time standing to the credit of any Security Account except
with the prior consent of the Collateral Agent.
	 
	 	(c)	 	Each Chargor must ensure that none of its Security Accounts is overdrawn at
any time.
	 
	 	(d)	 	Each Chargor must ensure that each Account Bank operates each Security
Account in accordance with the terms of this Deed and the notices given under Clause
9.5 or as permitted by the Credit Agreement.

	9.5	 	Notices of charge

	 	(a)	 	Each Chargor must:

	 	(i)	 	following the Revolving Credit Collateral Discharge Date
immediately give notice to each relevant Account Bank substantially in the
form of Part 1 of Schedule 2 (Forms of letter for Security Accounts); and

25

 

	 	(ii)	 	use all reasonable endeavours to procure that each relevant Account
Bank acknowledges that notice substantially in the form of Part 2 of
Schedule 2 (Forms of letter for Security Accounts).

	 	(b)	 	As soon as practicable after receipt by the Collateral Agent of the
acknowledgement in paragraph (a)(ii) above from an Account Bank and provided that no
Default is outstanding, the Collateral Agent will send a letter to that Account Bank
substantially in the form of Part 3 of Schedule 2 (Forms of letter for Account Bank).

	10.	 	RELEVANT CONTRACTS
	 
	10.1	 	Representations
	 
	 	 	Each Chargor represents and warrants to each Secured Party that:

	 	(a)	 	each of its Security Contracts is its legally binding, valid, and enforceable
obligation;
	 
	 	(b)	 	it is not in default of any of its obligations under any of its Security Contracts;
	 
	 	(c)	 	(save as otherwise agreed with the Collateral Agent) there is no
prohibition on assignment in any of its Primary Contracts; and
	 
	 	(d)	 	its entry into and performance of this Deed will not conflict with
any term of any of its Primary Contracts.

	10.2	 	Preservation

	 	(a)	 	No Chargor may, without the prior consent of the Collateral Agent or unless
expressly permitted by the Credit Agreement:

	 	(i)	 	amend or waive any term of, or terminate, any of its
Secondary Contracts; or
	 
	 	(ii)	 	take any action which might jeopardise the existence
or enforceability of any of its Secondary Contracts,

	 	 	 	in each case to the extent that the same would have a Material Adverse Effect.
	 
	 	(b)	 	No Chargor may, without the prior consent of the Collateral Agent or unless
expressly permitted by the Credit Agreement:

	 	(i)	 	amend or waive any term of, or terminate, any of its
Primary Contracts; or
	 
	 	(ii)	 	take any action which might jeopardise the existence
or enforceability of any of its Primary Contracts.

	10.3	 	Other undertaking
	 
	 	 	Each Chargor must:

	 	(a)	 	duly and promptly perform its obligations under each of its Security
Contracts; and

26

 

	 	(b)	 	supply the Collateral Agent and any Receiver with copies of each of its
Security Contracts and any information and documentation relating to any of its
Security Contracts requested by the Collateral Agent or any Receiver.

	10.4	 	Rights

	 	(a)	 	Subject to the rights of the Collateral Agent under paragraph (b) below,
each Chargor must diligently pursue its rights under each of its Security Contracts,
but only if and to the extent that the exercise of those rights in the manner
proposed would not result in a Default under the terms of the Credit
Agreement.
	 
	 	(b)	 	If an Event of Default is continuing, the Collateral Agent may exercise
(without any further consent or authority on the part of the relevant Chargor and
irrespective of any direction given by the Chargor) any of that Chargor’s rights
under its Security Contracts.

	10.5	 	Notices of assignment
	 
	 	 	Each Chargor must:

	 	(a)	 	immediately serve a notice of assignment, substantially in the form of Part
1 of Schedule 4 (Forms of letter for Primary Contracts), on each of the other parties
to each of its Primary Contracts (unless notice is given to those parties under the
Loan Documents); and
	 
	 	(b)	 	use all reasonable endeavours to procure that each of those other parties
acknowledges that notice, substantially in the form of Part 2 of
Schedule 4 (Forms of
letter for Primary Contracts) within 14 days of the date of this Deed or any Deed of
Accession by which it became party to this Deed or, if later, the date of entry into
that Primary Contract (as appropriate).

	11.	 	PLANT AND MACHINERY
	 
	11.1	 	Maintenance
	 
	 	 	Each Chargor must keep its Plant and Machinery in good repair and in good working order
and condition.
	 
	11.2	 	Nameplates
	 
	 	 	Each Chargor must take any action which the Collateral Agent may reasonably require to
evidence the interest of the Collateral Agent in its Plant and Machinery; this includes
(if so requested) fixing a nameplate on its Plant and Machinery in a prominent position
stating that:

	 	(a)	 	the Plant and Machinery is charged in favour of the Collateral Agent; and
	 
	 	(b)	 	the Plant and Machinery must not be disposed of without the prior consent
of the Collateral Agent unless permitted under the Credit Agreement.

	11.3	 	INSURANCE POLICIES
	 
	11.4	 	Rights

	 	(a)	 	Subject to the rights of the Collateral Agent under paragraph (b) below,
each Chargor must diligently pursue its rights under each of its Insurance Policies,
but

27

 

	 		 	only if and to the extent that the exercise of those rights in the manner
proposed would not result in a Default under the terms of the Credit Agreement.
	 
	 	(b)	 	If an Event of Default is continuing:

	 	(i)	 	the Collateral Agent may exercise (without any further
consent or authority on the part of any Chargor and irrespective of any
direction given by any Chargor) any of the rights of any Chargor in
connection with any amounts payable to it under any of its Insurance
Policies;
	 
	 	(ii)	 	each Chargor must take such steps (at its own cost) as the
Collateral Agent may require to enforce those rights; this includes
initiating and pursuing legal or arbitration proceedings in the name of that
Chargor; and
	 
	 	(iii)	 	each Chargor must hold any payment received by it under
any of its Insurance Policies on trust for the Collateral Agent.

	11.5	 	Notice
	 
	 	 	Each Chargor must:

	 	(a)	 	immediately give notice of this Deed to each of the other parties to each of
the Insurance Policies by sending a notice substantially in the form of Part l of
Schedule 3 (Insurance Policies); and
	 
	 	(b)	 	use all reasonable endeavours to procure that each such other party delivers
a letter of undertaking to the Collateral Agent in the form of Part 2 of Schedule 3
(Insurance Policies) within 14 days of the date of this Deed or any Deed of Accession
by which it became party to this Deed or, if later, the date of entry into that
Insurance (as appropriate).

	12.	 	WHEN SECURITY BECOMES ENFORCEABLE
	 
	12.1	 	Timing
	 
	 	 	This Security will become immediately enforceable if an Event of Default is continuing.
	 
	12.2	 	Enforcement
	 
	 	 	After this Security has become enforceable, the Collateral
Agent may in its absolute
discretion enforce all or any part of this Security in any manner it sees fit or as the
Required Lenders direct.
	 
	13.	 	ENFORCEMENT OF SECURITY
	 
	13.1	 	General

	 	(a)	 	The power of sale and any other power conferred on a mortgagee by law
(including under section 101 of the Act) as varied or amended by this Deed will be
immediately exercisable at any time after this Security has become enforceable.
	 
	 	(b)	 	For the purposes of all powers implied by law, the Secured Obligations are
deemed to have become due and payable on the date of this Deed.

28

 

	 	(c)	 	Any restriction imposed by law on the power of sale (including under section
103 of the Act) or the right of a mortgagee to consolidate mortgages (including
under section 93 of the Act) does not apply to this Security.
	 
	 	(d)	 	Any powers of leasing conferred on the Collateral Agent by law are
extended so as to authorise the Collateral Agent to lease, make agreements for
leases, accept surrenders of leases and grant options as the Collateral Agent may
think fit and without the need to comply with any restrictions conferred by law
(including under section 99 or 100 of the Act).

	13.2	 	No liability as mortgagee in possession
	 
	 	 	Neither the Collateral Agent nor any Receiver will be liable, by reason of entering into
possession of a Security Asset:

	 	(a)	 	to account as mortgagee in possession or for any loss on realisation; or
	 
	 	(b)	 	for any default or omission for which a mortgagee in possession might be liable.

	13.3	 	Privileges
	 
	 	 	Each Receiver and the Collateral Agent is entitled to all the rights, powers, privileges
and immunities conferred by law (including the Act) on mortgagees and receivers duly
appointed under any law (including the Act).
	 
	13.4	 	Protection of third parties
	 
	 	 	No person (including a purchaser) dealing with the Collateral Agent or a Receiver or its
or his agents will be concerned to enquire:

	 	(a)	 	whether the Secured Obligations have become payable;
	 
	 	(b)	 	whether any power which the Collateral Agent or a Receiver is purporting to
exercise has become exercisable or is being properly exercised;
	 
	 	(c)	 	whether any money remains due under the Loan Documents; or
	 
	 	(d)	 	how any money paid to the Collateral Agent or to that Receiver is to be applied.

	13.5	 	Redemption of prior mortgages

	 	(a)	 	At any time after this Security has become enforceable, the Collateral Agent
may:

	 	(i)	 	redeem any prior Security Interest against any Security Asset; and/or
	 
	 	(ii)	 	procure the transfer of that Security Interest to itself; and/or
	 
	 	(iii)	 	settle and pass the accounts of the prior mortgagee,
chargee or encumbrancer; any accounts so settled and passed will be, in the
absence of manifest error, conclusive and binding on each Chargor.

	 	(b)	 	Each Chargor must pay to the Collateral Agent, immediately on demand, the
costs and expenses incurred by the Collateral Agent in connection with any such
redemption and/or transfer, including the payment of any principal or interest.

29

 

	13.6	 	Contingencies
	 
	 	 	If this Security is enforced at a time when no amount is due under the Loan Documents but
at a time when amounts may or will become due, the Collateral Agent (or the Receiver) may
pay the proceeds of any recoveries effected by it into such number of suspense accounts as
it considers appropriate.
	 
	14.	 	ADMINISTRATOR
	 
	14.1	 	Appointment of Administrator

	 	(a)	 	Subject to the Insolvency Act 1986, at any time and from time to time after
this Security becomes enforceable in accordance with Clause 12.1, or if any Chargor
so requests the Collateral Agent in writing from time to time, the Collateral Agent
may appoint any one or more qualified persons to be an Administrator of that Chargor,
to act together or independently of the other or others appointed (to the extent
applicable).
	 
	 	(b)	 	Any such appointment may be made pursuant to an application to court under
paragraph 12 of Schedule Bl of the Insolvency Act 1986 (Administration application)
or by filing specified documents with the court under paragraphs 14 — 21 of Schedule
Bl of the Insolvency Act 1986 (Appointment of administrator by holder of floating
charge).
	 
	 	(c)	 	In this clause qualified person means a person who, under the Insolvency
Act 1986, is qualified to act as an Administrator of any company with respect to
which he is appointed.

	15.	 	RECEIVER
	 
	15.1	 	Appointment of Receiver

	 	(a)	 	Except as provided below, the Collateral Agent may appoint any one or more
persons to be a Receiver of all or any part of the Security Assets if:

	 	(i)	 	this Security has become enforceable; or
	 
	 	(ii)	 	a Chargor so requests the Collateral Agent in writing at any time.

	 	(b)	 	Any appointment under paragraph (a) above may be by deed, under seal or in
writing under its hand.
	 
	 	(c)	 	Except as provided below, any restriction imposed by law on the right of a
mortgagee to appoint a Receiver (including under section 109(1) of the Act) does not
apply to this Deed.
	 
	 	(d)	 	The Collateral Agent is not entitled to appoint a Receiver solely as a
result of the obtaining of a moratorium (or anything done with a view to obtaining a
moratorium) under the Insolvency Act 2000 except with the leave of the court.
	 
	 	(e)	 	The Collateral Agent may not appoint an administrative receiver (as defined
in section 29(2) of the Insolvency Act 1986) over the Security Assets if the
Collateral Agent is prohibited from so doing by section 72A of the Insolvency Act
1986 and no exception to the prohibition on appointing an administrative receiver
applies.

30

 

	15.2	 	Removal
	 
	 	 	The Collateral Agent may by writing under its hand (subject
to any requirement for an order
of the court in the case of an administrative receiver) remove any Receiver appointed by it
and may, whenever it thinks fit, appoint a new Receiver in the place of any Receiver whose
appointment may for any reason have terminated.
	 
	15.3	 	Remuneration
	 
	 	 	The Collateral Agent may fix the remuneration of any Receiver appointed by it and any
maximum rate imposed by any law (including under section 109(6) of the Act) will not
apply.
	 
	15.4	 	Agent of each Chargor

	 	(a)	 	A Receiver will be deemed to be the agent of the relevant Chargor for all
purposes and accordingly will be deemed to be in the same position as a Receiver duly
appointed by a mortgagee under the Act. The relevant Chargor is solely responsible for
the contracts, engagements, acts, omissions, defaults and losses of a Receiver and
for liabilities incurred by a Receiver.
	 
	 	(b)	 	No Secured Party will incur any liability (either to a Charger or to any
other person) by reason of the appointment of a Receiver or for any other reason.

	15.5	 	Relationship with Collateral Agent
	 
	 	 	To the fullest extent allowed by law, any right, power or discretion conferred by this
Deed (either expressly or impliedly) or by law on a Receiver may after this Security
becomes enforceable be exercised by the Collateral Agent in relation to any Security Asset
without first appointing a Receiver or notwithstanding the appointment of a Receiver.
	 
	16.	 	POWERS OF RECEIVER
	 
	16.1	 	General

	 	(a)	 	A Receiver has all the rights, powers and discretions set out below in this
Clause in addition to those conferred on it by any law. This includes:

	 	(i)	 	in the case of an administrative receiver, all the rights,
powers and discretions conferred on an administrative receiver under the
Insolvency Act 1986; and
	 
	 	(ii)	 	otherwise, all the rights, powers and discretions conferred
on a receiver (or a receiver and manager) under the Act and the Insolvency
Act 1986.

	 	(b)	 	If there is more than one Receiver holding office at the same time; each
Receiver may (unless the document appointing him states otherwise) exercise all the
powers conferred on a Receiver under this Deed individually and to the exclusion of
any other Receiver.

	16.2	 	Possession
	 
	 	 	A Receiver may take immediate possession of, get in and collect any Security Asset.

31

 

	16.3	 	Carry on business
	 
	 	 	A Receiver may carry on any business of any Chargor in any
manner he thinks fit.
	 
	16.4	 	Employees

	 	(a)	 	A Receiver may appoint and discharge managers, officers, agents, accountants,
servants, workmen and others for the purposes of this Deed upon such terms as to
remuneration or otherwise as he thinks fit.
	 
	 	(b)	 	A Receiver may discharge any person appointed by any Chargor.

	16.5	 	Borrow money
	 
	 	 	A Receiver may raise and borrow money either unsecured or on the security of any Security
Asset either in priority to this Security or otherwise and generally on any terms and for
whatever purpose which he thinks fit.
	 
	16.6	 	Sale of assets

	 	(a)	 	A Receiver may sell, exchange, convert into money and realise any Security
Asset by public auction or private contract and generally in any manner and on any
terms which he thinks fit.
	 
	 	(b)	 	The consideration for any such transaction may consist of cash, debentures
or other obligations, shares, stock or other valuable consideration and any such
consideration may be payable in a lump sum or by instalments spread over any period
which he thinks fit.
	 
	 	(c)	 	Fixtures may be severed and sold separately from the property containing
them without the consent of the relevant Chargor.

	16.7	 	Leases
	 
	 	 	A Receiver may let any Security Asset for any term and at any rent (with or without a
premium) which he thinks fit and may accept a surrender of any lease or tenancy of any
Security Asset on any terms which he thinks fit (including the payment of money to a
lessee or tenant on a surrender).
	 
	16.8	 	Compromise
	 
	 	 	A Receiver may settle, adjust,  refer to arbitration, compromise and arrange any claim,
account,  dispute, question or demand with or by any person who is or claims to be a
creditor of any Chargor or relating in any way to any Security Asset.
	 
	16.9	 	Legal actions
	 
	 	 	A Receiver may bring, prosecute, enforce, defend and abandon any action, suit or
proceedings in relation to any Security Asset which he thinks fit.
	 
	16.10	 	Receipts
	 
	 	 	A Receiver may give a valid receipt for any moneys and execute any assurance or thing
which may be proper or desirable for realising any Security Asset.

32

 

	16.11	 	Subsidiaries
	 
	 	 	A Receiver may form a Subsidiary of any Chargor and transfer to that Subsidiary any
Security Asset.
	 
	16.12	 	Delegation
	 
	 	 	A Receiver may delegate his powers in accordance with this Deed.
	 
	16.13	 	Lending
	 
	 	 	A Receiver may lend money or advance credit to any customer of any Chargor.
	 
	16.14	 	Protection of assets
	 
	 	 	A Receiver may:

	 	(a)	 	effect any repair or insurance and do any other act which any Chargor might
do in the ordinary conduct of its business to protect or improve any Security Asset;
	 
	 	(b)	 	commence and/or complete any building operation; and
	 
	 	(c)	 	apply for and maintain any planning permission, building regulation approval
or any other authorisation,
	 
	 	(d)	 	in each case as he thinks fit.

	16.15	 	Other powers
	 
	 	 	A Receiver may:

	 	(a)	 	do all other acts and things which he may consider desirable or necessary
for realising any Security Asset or incidental or conducive to any of the rights,
powers or discretions conferred on a Receiver under or by virtue of this Deed or by
law;
	 
	 	(b)	 	exercise in relation to any Security Asset all the powers, authorities and
things which he would be capable of exercising if he were the absolute beneficial
owner of that Security Asset; and
	 
	 	(c)	 	use the name of any Chargor for any of the above purposes.

	17.	 	APPLICATION OF PROCEEDS

	 	(a)	 	All moneys from time to time received or recovered by the Collateral Agent
or any Receiver in connection with the realisation or enforcement of all or any part
of the Security shall be held by the Collateral Agent on trust for the Secured
Parties from time to time in accordance with the provisions of the Security Trust
Deed to apply them at such times as the Collateral Agent sees fit, to the extent
permitted by applicable law (subject to the provisions of this Clause), in accordance
with the terms of the Loan Documents.
	 
	 	(b)	 	This Clause does not prejudice the right of any Secured Party to recover
any shortfall from a Loan Party.

33

 

	18.	 	TAXES, EXPENSES AND INDEMNITY

	 	(a)	 	Each Chargor must immediately on demand pay, or on an indemnity basis
reimburse, any and all amounts for which it is liable under
Sections 2.06, 2.15, 2.16, 2.22, 7.10, 11.03 and 11.18 of the
Credit Agreement.
	 
	 	(b)	 	Any amount due but unpaid shall carry interest from the date of such
demand until so reimbursed at the rate and on the basis mentioned in Clause 23.2
(Interest).
	 
	 	(c)	 	The Chargors shall pay and within three Business Days of demand, indemnify
each Secured Party against any cost, liability or loss that Secured Party incurs in
relation to all stamp, registration, notarial and other Taxes or fees to which this
Deed, the Transaction Security or any judgment given in connection with them, is or
at any time may be subject.

	19.	 	DELEGATION
	 
	19.1	 	Power of Attorney
	 
	 	 	The Collateral Agent or any Receiver may delegate by power of attorney or in any other
manner to any person any right, power or discretion exercisable by it under this Deed.
	 
	19.2	 	Terms
	 
	 	 	Any such delegation may be made upon any terms (including power to sub-delegate) which
the Collateral Agent or any Receiver may think fit.
	 
	19.3	 	Liability
	 
	 	 	Neither the Collateral Agent nor any Receiver will be in any way liable or responsible to
any Chargor for any loss or liability arising from any act, default, omission or
misconduct on the part of any Delegate.
	 
	20.	 	FURTHER ASSURANCES
	 
	 	 	Each Chargor must, at its own expense, take whatever action the Collateral Agent or a
Receiver may, acting reasonably, require for:

	 	(a)	 	creating, perfecting or protecting any security intended to be created by or
pursuant to this Deed (including procuring that any third party create a Security
Interest in favour of the Collateral Agent over any Security Asset to which it holds
the legal title as trustee, nominee or agent);
	 
	 	(b)	 	facilitating the realisation of any Security Asset;
	 
	 	(c)	 	facilitating the exercise of any right, power or discretion exercisable by
the Collateral Agent or any Receiver in respect of any Security Asset; or
	 
	 	(d)	 	creating and perfecting security in favour of the Collateral Agent
(equivalent to the security intended to be created by this Deed) over any assets of
any Chargor located in any jurisdiction outside England and Wales.

	 	 	This includes:

	 	(i)	 	the re-execution of this Deed;

34

 

	 	(ii)	 	the execution of any legal mortgage, charge, transfer, conveyance,
assignment or assurance of any property, whether to the Collateral Agent
or to its nominee; and
	 
	 	(iii)	 	the giving of any notice, order or direction and the making
of any filing or registration,

	 	 	which, in any such case, the Collateral Agent may think
expedient.
	 
	21.	 	POWER OF ATTORNEY
	 
	 	 	Each Chargor, by way of security, irrevocably and severally appoints the Collateral Agent
and each Receiver to be its attorney to take any action which that Chargor is obliged to
take under this Deed. Each Chargor ratifies and confirms whatever any attorney does or
purports to do under its appointment under this Clause.
	 
	22.	 	PRESERVATION OF SECURITY
	 
	22.1	 	Continuing security
	 
	 	 	This Security is a continuing security and will extend to the ultimate balance of the
Secured Obligations, regardless of any intermediate payment or discharge in whole or in
part.
	 
	22.2	 	Reinstatement

	 	(a)	 	If any discharge (whether in respect of the obligations of any Loan Party or
any security for those obligations or otherwise) or arrangement is made in whole or
in part on the faith of any payment, security or other disposition which is avoided
or must be restored on insolvency, liquidation, administration or otherwise without
limitation, the liability of each Chargor under this Deed will continue or be
reinstated as if the discharge or arrangement had not occurred.
	 
	 	(b)	 	Each Secured Party may concede or compromise any claim that any payment,
security or other disposition is liable to avoidance or restoration.

	22.3	 	Waiver of defences
	 
	 	 	The obligations of each Chargor under this Deed will not be affected by any act, omission
or thing which, but for this provision, would reduce, release or prejudice any of its
obligations under this Deed (whether or not known to it or any Secured Party). This
includes:

	 	(a)	 	any time or waiver granted to, or composition with, any person;
	 
	 	(b)	 	any release of any person under the terms of any composition or arrangement;
	 
	 	(c)	 	the taking, variation, compromise, exchange, renewal or release of, or
refusal or neglect to perfect, take up or enforce, any rights against, or security
over assets of, any person;
	 
	 	(d)	 	any non-presentation or non-observance of any formality or other
requirement in respect of any instrument or any failure to realise the full value of
any security;
	 
	 	(e)	 	any incapacity lack of power, authority or legal personality of or
dissolution or change in the members or status of any person;

35

 

	 	(f)	 	any amendment (however fundamental) of a Loan Document or any other document
or security; or
	 
	 	(g)	 	any unenforceability, illegality, invalidity or non-provability of any
obligation of any person under any Loan Document or any other document or security
or the failure by any member of the Group to enter into or be bound by any Loan
Document.

	22.4	 	Immediate recourse
	 
	 	 	Each Chargor waives any right it may have of first requiring
any Secured Party (or any
trustee or agent on its behalf) to proceed against or enforce any other right or security
or claim payment from any person or file any proof or claim in any insolvency,
administration, winding-up or liquidation proceedings relative to any other Loan Party or
any other person before claiming from that Chargor under this Deed.
	 
	22.5	 	Appropriations
	 
	 	 	Until all amounts which may be or become payable by the Loan Parties under the Loan
Documents have been irrevocably paid in full, each Secured Party (or any trustee or agent on
its behalf) may without affecting the liability of any Chargor under this Deed:

	 	(a)	 	refrain from applying or enforcing any other moneys, security or rights
held or received by that Secured Party (or any trustee or agent on its behalf)
against those amounts; or
	 
	 	(b)	 	apply and enforce them in such manner and order as it sees fit (whether
against those amounts or otherwise; and
	 
	 	(c)	 	hold in an interest-bearing suspense account any moneys received from any
Chargor or on account of that Chargor’s liability under this Deed.

	22.6	 	Non-competition
	 
	 	 	Unless:

	 	(a)	 	all amounts which may be or become payable by the Loan Parties under the
Loan Documents have been irrevocably paid in full; or
	 
	 	(b)	 	the Collateral Agent otherwise directs,

	 	 	no Chargor will, after a claim has been made or by virtue of any payment or performance
by it under this Deed:

	 	(i)	 	be subrogated to any rights, security or moneys held, received or receivable by any Secured Party (or any trustee or agent on its
behalf);
	 
	 	(ii)	 	be entitled to any right of contribution or Indemnity in
respect of any payment made or moneys received on account of that Chargor’s
liability under this Clause;
	 
	 	(iii)	 	claim, rank, prove or vote as a creditor of any Loan
Party or its estate in competition with any Secured Party (or any trustee
or agent on its behalf); or

36

 

	 	(iv)	 	receive, claim or have the benefit of any payment, distribution or
security from or on account of any Loan Party, or exercise any right of
set-off as against any Loan Party.

	 	 	Each Chargor must hold in trust for and must immediately pay or transfer to the Collateral
Agent for the Secured Parties any payment or distribution or benefit of security received
by it contrary to this Clause or in accordance with any directions given by the Collateral
Agent under this Clause.
	 
	22.7	 	Additional security

	 	(a)	 	This Deed is in addition to and is not in any way prejudiced by any other
security now or subsequently held by any Secured Party;
	 
	 	(b)	 	No prior security held by any Secured Party (in its capacity as such or
otherwise) over any Security Asset will merge into this Security.

	22.8	 	Delivery of documents
	 
	 	 	To the extent any Chargor is required hereunder to deliver any deed, certificate, document
of title or other document relating to the Security to the Collateral Agent for purposes
of possession or control and is unable to do so as a result of having previously delivered
such to the Revolving Credit Collateral Agent in accordance with the terms of the
Revolving Credit Loan Documents, such Chargor’s obligations hereunder with respect to such
delivery shall be deemed satisfied by the delivery to the Revolving Credit Collateral
Agent.
	 
	22.9	 	Security held by Chargor
	 
	 	 	No Chargor may, without the prior consent of the Collateral Agent, hold any security from
any other Loan Party in respect of that Chargor’s liability under this Deed. Each Chargor
will hold any security held by it in breach of this provision on trust for the Collateral
Agent.
	 
	23.	 	MISCELLANEOUS
	 
	23.1	 	Covenant to pay
	 
	 	 	Each Chargor must pay or discharge the Secured Obligations in the manner provided for in
the Loan Documents.
	 
	23.2	 	Interest
	 
	 	 	If a Chargor fails to pay any sums on the due date for payment of that sum the Chargor
shall pay interest on such sum (before and after any judgment and to the extent interest
at a default rate is not otherwise being paid on that sum) from the date of demand until
the date of payment calculated and compounded in accordance with the provisions of Section
2.06(c) of the Credit Agreement.
	 
	23.3	 	Tacking
	 
	 	 	Each Lender must perform its obligations under the Credit Agreement (including any
obligation to make available further advances).

37

 

	23.4	 	New Accounts

	 	(a)	 	If any subsequent charge or other interest affects any Security Asset, any
Secured Party may open a new account with any Loan Party.
	 
	 	(b)	 	If a Secured Party does not open a new account, it will nevertheless be
treated as if it had done so at the time when it received or was deemed to have
received notice of that charge or other interest.
	 
	 	(c)	 	As from that time all payments made to that Secured Party will be credited
or be treated as having been credited to me new account and will not operate to
reduce any Secured Liability.

	23.5	 	Time deposits
	 
	 	 	Without prejudice to any right of set-off any Secured Party may have under any Loan
Document or otherwise, if any time deposit matures on any account a Chargor has with any
Secured Party within the Security Period when:

	 	(a)	 	this Security has become enforceable; and
	 
	 	(b)	 	no Secured Liability is due and payable,

	 	 	that time deposit will automatically be renewed for any further maturity which that
Secured Party in its absolute discretion considers appropriate unless that Secured Party
otherwise agrees in writing.
	 
	23.6	 	Notice of assignment
	 
	 	 	This Deed constitutes notice in writing to each Chargor of any charge or assignment of a
debt owed by that Chargor to any other member of the Group and contained in any Loan
Document.
	 
	23.7	 	Perpetuity period
	 
	 	 	The perpetuity period for the trusts in this Deed is 80 years.
	 
	23.8	 	Financial Collateral

	 	(a)	 	To the extent that the assets mortgaged or charged under this Deed
constitute “financial collateral” and this Deed and the obligations of the Chargors
under this Deed constitute a “security financial collateral arrangement” (in each
case for the purpose of and as defined in the Financial Collateral Arrangements
(No. 2) Regulations 2003 (SI 2003 No. 3226)) the Collateral Agent shall have the right
after this Security has become enforceable to appropriate all or any part of
that financial collateral in or towards the satisfaction of the Secured Obligations.
	 
	 	(b)	 	For the purpose of paragraph (a) above, the value of the financial
collateral appropriated shall be such amount as the Collateral Agent reasonable
determines having taken into account advice obtained by it from an independent
investment or accountancy firm of national standing selected by it.

	24.	 	LOAN PARTIES

	 	(a)	 	All communications under this Deed to or from a Secured Party must be sent
through the Collateral Agent or Administrative Agent.

38

 

	 	(b)	 	Each Loan Party that is a Party to this Deed irrevocably appoints Novelis
Europe to act as its agent:

	 	(i)	 	to give and receive all communications under the
Security Documents or this Deed;
	 
	 	(ii)	 	to supply all information concerning itself to any Secured Party; and
	 
	 	(iii)	 	to agree and sign all documents under or in connection
with this Deed without further reference to any Loan Party; this includes
any amendment or waiver of this Deed which would otherwise have required the
consent of the Loan Parties.

	 	(c)	 	Novelis Europe hereby accepts the appointment under Clause 24(b).
	 
	 	(d)	 	Any communication given to Novelis Europe in connection with this Deed
will be deemed to have been given also to the other Loan Parties that are Party to
this Deed.
	 
	 	(e)	 	The Collateral Agent may assume that any communication made by Novelis
Europe is made with the consent of each Loan Party that is Party to this Deed.

	25.	 	RELEASE
	 
	 	 	At the end of the Security Period (or as required by the Loan Documents), the Collateral
Agent must, at the request and cost of the Novelis Europe, take whatever action is
reasonably necessary to release the relevant Security Assets from this Security, provided
that to the extent any Security Interest granted by any Chargor over the Term Loan
Priority Collateral is released under this Clause, that Chargor shall take whatever
action is required under the Revolving Credit Security Agreement, including serving any
notice thereunder.
	 
	26.	 	COUNTERPARTS
	 
	 	 	This Deed may be executed in any number of counterparts and all of those counterparts
taken together shall be deemed to constitute one and the same instrument.
	 
	27.	 	NOTICES
	 
	27.1	 	Communications in Writing
	 
	 	 	Each communication to be made under or in connection with this Deed shall be made in
writing and, unless otherwise stated, shall be made by fax or letter.
	 
	27.2	 	Addresses

	 	(a)	 	Any notice or other communication herein required or permitted to be given
to a party to this Deed shall be sent to the relevant party’s address set out in
Clause 27.2(b) below or as set forth in the Credit Agreement or any substitute
address, fax number or department or officer as the relevant party may notify to the
Collateral Agent (or the Collateral Agent may notify to the other parties, if a
change is made by the Collateral Agent) by not less than five business days’ notice.
	 
	 	(b)	 	For the purposes of Clause 27.2(a) above, the address of each Chargor shall be:

39

 

Novelis Europe Holdings Limited

Castle Works

Rogerstone

Newport

NP10 9YD

Attention: David Sneddon, CFO.

with a copy to

Novelis Inc

3399 Peachtree Road NE, Suite 1500

Atlanta GA 30326

USA

Attention: Orville Lunking, Treasurer

	27.3	 	Delivery

	 	(a)	 	Any communication or document made or delivered by one person to another
under or in connection with this Deed will only be effective:

	 	(i)	 	if by way of fax, when received in legible form; or
	 
	 	(ii)	 	if by way of letter, when it has been left at the relevant address or, as
the case may be, five days after being deposited in the post postage prepaid in
an envelope addressed to it at that address.

	 	(b)	 	Any communication or document to be made or delivered to the Collateral
Agent under or in connection with this Deed shall be effective only when actually
received by the Collateral Agent and then only if It is expressly marked for the
attention of the department or officer identified with the Collateral Agent’s
communication details (or any substitute department or officer as the Collateral
Agent shall specify for this purpose).

	27.4	 	Notification of address and fax number
	 
	 	 	Promptly upon receipt of notification of an address and fax number or change of address or
fax number pursuant to Clause 27.2 (Addresses) or changing its own address or fax number,
the Collateral Agent shall notify the other parties.
	 
	27.5	 	English language

	 	(a)	 	Any notice given under or in connection with this Deed must be in English.
	 
	 	(b)	 	All other documents provided under or In connection with this Deed must be:

	 	(i)	 	in English; or
	 
	 	(ii)	 	if not in English, and if so required by the Collateral
Agent, accompanied by a certified English translation and, in this case, the
English translation will prevail unless the document is a constitutional,
statutory or other official document.

	28.	 	GOVERNING LAW
	 
	 	 	This Deed is governed by English law.

40

 

	29.	 	ENFORCEMENT
	 
	29.1	 	Jurisdiction

	 	(a)	 	The English courts have exclusive jurisdiction to settle any dispute in
connection with this Deed, save that the Collateral Agent (and only the Collateral
Agent) has the right to have any dispute settled by the New York courts, in which case
the New York courts have exclusive jurisdiction in respect of that dispute, and any
proceedings before the English courts in respect of that dispute shall be stayed with
immediate effect.
	 
	 	(b)	 	The English courts are the most appropriate and convenient courts to settle
any such dispute in connection with this Agreement, save that, if the Collateral
Agent invokes the jurisdiction of the New York courts in respect of any dispute, the
New York courts are the most appropriate and convenient courts to settle such
dispute, even if the jurisdiction of the English Courts has already been seised. Each
Chargor agrees not to argue to the contrary and waives objection to the provisions of
this clause on the grounds of inconvenient forum or otherwise in relation to
proceedings in connection with this Deed.
	 
	 	(c)	 	This Clause is for the benefit of the Secured Parties only. To the extent
allowed by law, a Secured Party may take:

	 	(i)	 	proceedings in any other court; and
	 
	 	(ii)	 	concurrent proceedings in any number of jurisdictions.

	 	(d)	 	References in this Clause to a dispute in connection with this Deed include
any dispute as to the existence, validity or termination of this Deed.

	29.2	 	Waiver of immunity

	 	(a)	 	Each Chargor irrevocably and unconditionally:
	 
	 	(b)	 	agrees not to claim any immunity from proceedings brought by a Secured Party
against it in relation to this Deed and to ensure that no such claim is made on its
behalf;
	 
	 	(c)	 	consents generally to the giving of any relief or the issue of any process
in connection with those proceedings; and
	 
	 	(d)	 	waives all rights of immunity in respect of it or its assets.

	 	 	This Deed has been executed and delivered as a deed on the date stated at the beginning of
this Deed.

41

 

SCHEDULE 1

SECURITY ASSETS

PART 1

REAL PROPERTY

A. Original Property

	 	 	 	 	 
	Legal Owner	 	Title No.	 	Description
	Novelis UK Ltd

	 	WA915530
	 	Rogerstone Works, Rogerstone
	 
	 	 	 	 
	Novelis UK Ltd

	 	CYM94747
	 	Land at Rogerstone Works (Triangle)
	 
	 	 	 	 
	Novelis UK Ltd

	 	CYM94951
	 	Land at Tregwilym Road, Rogerstone
	 
	 	 	 	 
	Novelis UK Ltd

	 	CYM94762
	 	115,117,1198,121 Tregwilym Road, Rogerstone
	 
	 	 	 	 
	Novelis UK Ltd

	 	WA989793
	 	127 Tregwilym Road, Rogerstone
	 
	 	 	 	 
	Novelis UK Ltd

	 	WA989794
	 	The Cottage, Fieldsview, Tregwilym Road Rogerstone
	 
	 	 	 	 
	Novelis UK Ltd	 	1, 2, 3 and 4 John’s Lane, Rogerstone, conveyed to the Northern
Aluminium Company Limited pursuant to (i) (in relation to 1, 2 and 4
John’s Lane, Rogerstone) a conveyance dated 2nd May, 1957 made between
Northern Aluminium Company Limited and Josiah Williams and (ii) (in
relation to 3 John’s Lane, Rogerstone) a conveyance dated 16th May, 1957
made between Northern Aluminium Company Limited and Idris Whatley.
	 
	 	 	 	 
	Novelis UK Ltd

	 	CH449717
	 	Latchford Works, Thelwall Lane, Warrington
	 
	 	 	 	 
	Novelis UK Ltd

	 	CH492388
	 	Land lying to the north west of Thelwall Lane, Warrington
	 
	 	 	 	 
	Novelis UK Ltd

	 	CH469667
	 	Land on the north side of Thelwall Lane, Latchford
	 
	 	 	 	 
	Novelis UK Ltd

	 	CH469669
	 	Land and buildings lying to the north of Thelwall Lane,
Warrington
	 
	 	 	 	 
	Novelis UK Ltd	 	Such of the land conveyed by the following conveyances which remains in
the ownership of the Novelis UK Ltd at the date hereof, subject to, but
with the benefit of the leases dated 1 July 2001 and 10 December 2002
made between Novelis UK Ltd (in its then name Lawson Marden Star
Limited) and Bridgenorth Aluminium Limited
	 
	 	 	 	 
	 	 	(i) conveyance dated 24 February 1955 and made between Edgar Clifford
Marsland (1) and Star Aluminium Company Limited (2);
	 
	 	 	 	 
	 	 	(ii) conveyance dated 25 February 1955 and made between James Alfred
Wright (1) and Star Aluminium Company Limited (2); and
	 
	 	 	 	 
	 	 	(iii) conveyance dated 25 February 1955 and made between Thomas Corbett
Rochelle and Jessie Vera Rochelle (1) and Star Aluminium Company Limited

42

 

	 	 	 	 	 
	Legal Owner	 	Title No.	 	Description
	 	 	(2);
	 
	 	 	 	 
	 	 	(iv) conveyance dated 25
September 1955 and made
between Thomas Corbette
Rochelle and Jessie Vera
Rochelle (1) and Star
Aluminium Company Limited
(2).
	 
	 	 	 	 
	 	 	For the avoidance of doubt
this property does not
include the land the
subject of the transfer 10
December 2002 made between
Novelis UK Ltd (in its
then name Lawson Marden
Star Limited) and
Bridgenorth Aluminium
Limited title to which
freehold is registered
under title number
SL150811

B. Excluded Real Property

	 	 	 	 	 	 	 
	Legal Owner	 	Title No.	 	Description	 	Term
	A Banbury
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	Novelis UK Ltd

	 	Unregistered title
	 	Leasehold property known as Fifth
Floor, Beaumont House, Southam, Road,
Banbury, Oxfordshire as demised by a
Lease dated 8 August 2003 made between
Beryland Limited (1) and British Alcan
Aluminum Plc (2)
	 	31 July 2003 and
expiring on 30 July
2013
	 
	 	 	 	 	 	 
	B Latchford
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	Novelis UK Ltd

	 	CH469668
	 	Leasehold property known as land on
the north side of Thelwall Lane,
Warrington
	 	29th April, 1991 to
29th April 2021
	 
	 	 	 	 	 	 
	C West Bromwich

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	Novelis UK Ltd

	 	N/A
	 	Leasehold premises at Golds Hill, Hill
Top, West Bromwich, Shropshire as
demised by a lease dated 14 December
1973 made between Murphy Brothers Ltd
and High Star Limited more commonly
known as Unit ID Hilltop Industrial
Estate
	 	1st November 1973
to 1 November 2008
	 
	 	 	 	 	 	 
	D Bilston
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	Novelis UK Ltd

	 	N/A
	 	Leasehold premises at Unit 13, Imex

Business Centre, Dudley Road, Bilston
	 	8th December 2005
to 8th December
2008
	 
	 	 	 	 	 	 
	E. Bridgenorth

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	Novelis UK Ltd

	 	SL66977
	 	Freehold land on the south side of the
Bridgenorth bypass
	 	N/A

43

 

PART 2

CHARGED SHARES

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	Name of	 	 	 	 
	 	 	Name of	 	nominee (if any)	 	 	 	 
	 	 	Charged	 	by whom shares	 	Class of shares	 	Number of
	Chargor	 	Company	 	are held	 	held	 	shares held
	Novelis Europe 

Holdings 

Limited

	 	Novelis UK Ltd
	 	 	 	Ordinary
	 	 	70,976,500	 
	 
	 	 	 	 	 	 	 	 	 	 
	Novelis UK Ltd

	 	Novelis 

Automotive UK Ltd
	 	 	 	Ordinary
	 	 	20,000	 

PART 3

SPECIFIC PLANT AND MACHINERY

	 	 	 
	Chargor
	 	     Description

PART 4

SECURITY CONTRACTS

A. Primary Contracts

	 	 	 
	Chargor	 	Description
	Novelis UK Ltd

	 	Intercompany term promissory note issued to Novelis
Deutschland GmbH
	 
	 	 
	Novelis UK Ltd

	 	Intercompany term promissory note issued to Novelis
Luxembourg Participations SA
	 
	 	 
	Novelis UK Ltd

	 	Cash management agreement dated 1 February 2007
between, inter alios, Novelis AG and Novelis UK Ltd

44

 

	 	 	 
	Chargor	 	Description
	Novelis Europe 

Holdings Limited

	 	Cash management agreement dated 1
February 2007 between, inter
alios, Novelis AG and Novelis
Europe Holdings Limited
	 
	 	 
	Novelis UK Ltd

	 	ACMS agreement dated 15 January
2007 between, inter alios,
Commerzbank AG, Novelis AG and
Novelis UK Ltd

     B. Secondary Contracts

PART 5

SPECIFIC INTELLECTUAL PROPERTY

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Chargor	 	 	 	 	 	 	 	Description	 	 	 	 	 	 
	 	 	Owner	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Named on	 	 	 	 	 	Registration	 	 	 	 	 	Expiry
	Trademark	 	Register	 	Class	 	No	 	CTM	 	Filing Date	 	Date
	ALICAN & DEVICE

	 	Alcan Aluminium UK Limited
	 	 	16,39,40,41	 	 	 	2215385	 	 	X
	 	26 Nov 1999
	 	26 Nov 2009
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	ALICAN & DEVICE (Series of 3)

	 	Alcan Aluminium UK Limited
	 	 	39	 	 	 	1521958	 	 	X
	 	22 Dec 1992
	 	22 Dec 2009
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	ALLIGATOR DEVICE

	 	Alcan Aluminium UK Limited
	 	 	39	 	 	 	1551249	 	 	X
	 	20 Oct 1993
	 	20 Oct 2010
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	THINKCANS & DEVICE

	 	Novelis UK Ltd
(Latchford)
	 	 	35	 	 	 	2392058	 	 	X
	 	16 May 2005
	 	16 May 2015

PART 6

SECURITY ACCOUNTS

	 	 	 	 	 
	 	 	 	 	Security Account
	Account Bank	 	Security
Account numbers (s)	 	name
	HSBC Bank plc City of
London Corporate

	 	51050176 (Bridgnorth — GBP)
	 	Novelis UK Ltd

45

 

	 	 	 	 	 	 	 
	 	 	 	 	 	 	Security Account
	Account Bank	 	Security Account number(s)	 	name
	Office
	 	 	 	 	 	 
	Canary Wharf
	 	 	 	 	 	 
	London
	 	 	 	 	 	 
	E14 5HQ
	 	 	 	 	 	 
	Sort Code: 40-02-50
	 	 	 	 	 	 
	 

	 	51269313 (Rogerstone — GBP)
	 	Novelis UK Ltd
	 
	 	 	 	 	 	 
	 

	 	1272284	 	Novelis Europe

Holdings Limited
	 
	 	 	 	 	 	 
	HSBC Bank plc

	 	36650238 (Bridgnorth — CAD)
	 	Novelis UK Ltd.
	City of London Corporate

	 	59081939 (Rogerstone — CAD)
	 	 
	Office

	 	57166067
(Bridgnorth EUR)
	 	 
	Canary Wharf

	 	59081947 (Rogerstone EUR)
	 	 
	London

	 	57478406 (Bridgnorth CHF)
	 	 
	E14 5HQ

	 	67178848 (Rogerstone CHF)
	 	 
	Sort Code: 40-05-15

	 	57478371 (Bridgnorth SEK)
	 	 
	 

	 	59081971 (Rogerstone SEK)
	 	 
	 

	 	59081963 (Rogerstone DKK)
	 	 
	 

	 	36658094 (Bridgnorth USD)
	 	 
	 

	 	59081955 (Rogerstone USD)
	 	 
	 
	 	 	 	 	 	 
	 

	 	59241725 (EUR) 

59241733 (USD)
	 	Novelis Europe

Holdings Limited
	 
	 	 	 	 	 	 
	Commerzbank AG,

	 	30119391 (Rogerstone EUR)
	 	Novelis UK Ltd.
	London Branch

	 	30119392 (Bridgnorth EUR)
	 	 
	60 Gracechurch Street
	 	 	 	 	 	 
	London EC3V 0HR
	 	 	 	 	 	 
	Sort Code: 40-62-01
	 	 	 	 	 	 

46

 

SCHEDULE 2

FORMS OF LETTER FOR SECURITY ACCOUNTS

PART 1

NOTICE TO ACCOUNT BANK

To: [Account Bank]

Copy: [Collateral Agent]

[Date]

Dear Sirs,

Security agreement dated [     ] between [     ] and others and [     ] (the Security Agreement)

This letter constitutes notice to you that under the Security Agreement [Chargor] (the Chargor) has
charged (by way of a fixed charge) in favour of [•] as agent and trustee for the Secured Parties
referred to in the Security Agreement (the Collateral Agent) as first priority chargee all of its
rights in respect of any amount standing to the credit of any account maintained by it with you at
any of your branches (the Security Accounts) and the debts represented by the Security Accounts.

We irrevocably instruct and authorise you to:

	 	(a)	 	disclose to the Collateral Agent any information relating to any Security
Account requested from you by the Collateral Agent;
	 
	 	(b)	 	comply with the terms of any written notice or instruction relating to any
Security Account received by you from the Collateral Agent;
	 
	 	(c)	 	hold all sums standing to the credit of any Security Account to the order of
the Collateral Agent;
	 
	 	(d)	 	pay or release any sum standing to the credit of any Security Account in
accordance with the written instructions of the Collateral Agent issued from time to
time; and
	 
	 	(e)	 	pay all sums received by you for the account of the Chargor to the credit of
each Security Account of the Chargor with you.

We are not permitted to withdraw any amount from any Security Account without the prior written
consent of the Collateral Agent.

We acknowledge that you may comply with the instructions in this letter without any further
permission from us or any Chargor and without any enquiry by you as to the justification for or
validity of any request, notice or instruction.

The instructions in this letter may not be revoked or amended without the prior written consent of
the Collateral Agent.

This letter is governed by English law.

47

 

Please send to the Collateral Agent at [•] with a copy to ourselves the attached acknowledgement
confirming your agreement to the above and giving the further undertakings set out in the
acknowledgement.

Yours faithfully,

            
                     
                     
                     
     

(Authorised signatory)

For [Chargor]

48

 

PART 2

To: [Collateral Agent]

Copy: [Novelis Europe Holdings Limited]

[Date]

Dear Sirs,

Security
agreement dated [     ] between [     ] and others and [     ] (the Security Agreement)

We confirm receipt from [Chargor] (the Chargor) of a notice dated [•] of a charge upon the terms of
the Security Agreement over all the rights of the Chargor to any amount standing to the credit of
any of its accounts with us at any of our branches (the Security Accounts).

We confirm that we:

	 	(a)	 	accept the instructions contained in the notice and agree to comply with the
notice;
	 
	 	(b)	 	have not received notice of any outstanding interest of any
third party in
any Security Account;
	 
	 	(c)	 	hereby irrevocably and unconditionally waive our rights in respect of and
agree not to make any set-off or deduction from the Security Accounts or invoke any
right of retention in relation to the Security Accounts, other than in relation to
our customary agreed charges or fees payable in connection with the operation or
maintenance of the Security Accounts in the ordinary course of business;
	 
	 	(d)	 	will disclose to you any information relating to any Security Account
requested from us by you;
	 
	 	(e)	 	will comply with the terms of any written notice or instruction relating to
any Security Account received by us from you;
	 
	 	(f)	 	will hold all sums standing to the credit of any Security Account to your
order unless otherwise required by law;
	 
	 	(g)	 	will pay or release any sum standing to the credit of any Security Account
in accordance with your written instructions issued from time to time unless
otherwise required by law; and
	 
	 	(h)	 	will not permit any amount to be withdrawn from any Security Account without
your prior written consent or unless otherwise required by law; and
	 
	 	(i)	 	will pay all sums received by us for the account of the Chargor to a
Security Account of the Chargor with us unless otherwise required by law or
instructed by you.

Nothing contained in any of our arrangements with you shall commit us to providing any facilities
or making advances available to the Chargor.

This letter is governed by English law.

49

 

Yours faithfully,

             
                      
                      
                       

(Authorised signatory) [Account Bank]

50

 

PART 3

LETTER FOR OPERATION OF SECURITY ACCOUNTS

To: [Account Bank]

[DATE]

Dear Sirs,

Security
agreement dated [     ] between [     ] and others and [     ] (the Security Agreement)

We refer to:

	1.	 	the Security Agreement;
	 
	2.	 	the notice to you dated [•] from [Chargor] concerning the accounts referred to in that
notice (the Security Accounts); and
	 
	3.	 	the acknowledgement dated [•] issued by you to in response to the notice (the
“Acknowledgement”).

In this letter, Security Account means, in relation to [specify Chargor], account number [•],
sort code [•] or account number [•], sort code [•] and, in relation to [specify Chargor], account
number [•], sort code [•] or account number [•], sort code [•].

We confirm that we consent to the following transactions in relation to the Security Accounts:

	(a)	 	you may make payments on the instructions of the Chargor and debit the amounts involved to
any Security Account of the Chargor;
	 
	(b)	 	you may debit to any Security Account of the Chargor amounts due to you by that Chargor; and
	 
	(c)	 	in order to enable you to make available net overdraft, balance offset, netting or pooling
facilities to the Chargor you may set-off debit balances on any Security Account against
credit balances on any other Security Account with that Chargor if those Security Accounts
are included in group netting arrangements operated by you for the Chargor.

We may by notice to you amend or withdraw these consents. If the consents referred above are
withdrawn you will operate the Security Accounts in accordance with the terms of the
Acknowledgement, save that you may immediately set-off debit balances and credit balances on the
Security Accounts as and to the extent that the same relate to your customary agreed charges or
fees payable in connection with the operation or maintenance of the Security Accounts in the
ordinary course of business.

This letter is governed by English law.

Please acknowledge receipt of this letter by signing and returning to us the enclosed copy of
this letter.

51

 

Yours faithfully,

            
                     
                     
                     
     

(Authorised signatory) [Collateral Agent]

Receipt acknowledged

             
                      
                      
                       

(Authorised signatory) [Account Bank]

[Date]

52

 

SCHEDULE 3

FORMS OF LETTER FOR INSURANCE POLICIES

PART 1

FORM OF NOTICE OF ASSIGNMENT

(for attachment by way of endorsement to the insurance policies)

To: [Insurer]

Copy: [Collateral Agent]

[Date]

Dear Sirs,

Security agreement dated [•] between [•] and others and [•] (the Security Agreement)

This letter constitutes notice to you that under the Security Agreement, [Chargor] (the Chargor)
has assigned in favour of [•] as agent and trustee for the Secured Parties referred to in the
Security Agreement (the Collateral Agent) as first priority assignee all amounts payable to it
under or in connection with any contract of insurance of whatever nature taken out with you by or
on behalf of it or under which it has a right to claim (each an Insurance) and all of its rights
in connection with those amounts.

A reference in this letter to any amounts excludes all amounts received or receivable under or in
connection with any third party liability Insurance and required to settle a liability of a Loan
Party to a third party.

We confirm that:

	(a)	 	the Chargor will remain liable under [the] [each] Insurance to perform all the obligations
assumed by it under [the] [that] Insurance; and
	 
	(b)	 	none of the Collateral Agent, its agents, any receiver or any other person will at any time
be under any obligation or liability to you under or in respect of
[the] [any] Insurance.

The Chargor will also remain entitled to exercise all of its rights under [the] [each] Insurance
and you should continue to give notices under [the] [each] Insurance to the Chargor, unless and
until you receive notice from the Collateral Agent to the contrary. In this event, unless the
Collateral Agent otherwise agrees in writing:

	(a)	 	all amounts payable to the Chargor under [the] [each] Insurance must be paid to the
Collateral Agent; and
	 
	(b)	 	any rights of the Chargor in connection with those amounts will be exercisable by, and
notices must be given to, the Collateral Agent or as it directs.

Please note that the Chargor has agreed that it will not amend or waive any term of or terminate
[any of] the Insurance[s] without the prior
consent of the Collateral Agent.

53

 

The instructions in this letter may not be revoked or amended without the prior written consent of
the Collateral Agent.

Please note on the relevant contracts the Collateral Agent’s interest as loss payee and the
Collateral Agent’s interest as first priority assignee of those amounts and rights and send to the
Collateral Agent at [•] with a copy to ourselves the attached acknowledgement confirming your
agreement to the above and giving the further undertakings set out in
the acknowledgement.

We acknowledge that you may comply with the instructions in this letter without any further
permission from us and without any enquiry by you as to the justification for or validity of any
request, notice or instruction.

This letter is governed by English law.

Yours faithfully,

             
                      
                      
                       

For [Chargor]

54

 

PART 2

FORM OF LETTER OF UNDERTAKING

To: [Collateral Agent]

Copy: [Chargor]

[Date]

Dear Sirs,

Security
agreement dated [•] between
[•] and others and [•] (the Security Agreement)

We confirm receipt from [•] on behalf of [Chargor] (the Chargor) of a notice dated [•] of an
assignment by the Chargor upon the terms of the Security Agreement of all amounts payable to it
under or in connection with any contract of insurance of whatever nature taken out with us by or on
behalf of it or under which it has a right to claim and all of its rights in connection with those
amounts.

A reference in this letter to any amounts excludes all amounts received or receivable under or in
connection with any third party liability Insurance and required to settle a liability of a Loan
Party to a third party.

In consideration of your agreeing to the Chargor continuing their insurance arrangements with us
we:

	1.	 	accept the instructions contained in the notice and agree to comply with the notice;
	 
	2.	 	confirm that we have not received notice of the interest of any third party in those amounts
and rights;
	 
	3.	 	undertake to note on the relevant contracts your interest as loss payee and as first
priority assignee of those amounts and rights;
	 
	4.	 	undertake to disclose to you without any reference to or further authority from the Chargor
any information relating to those contracts which you may at any time
request;
	 
	5.	 	undertake to notify you of any breach by the Chargor of any of those contracts and to allow
you or any of the other Secured Parties (as defined in the Security Agreement) to remedy that
breach; and
	 
	6.	 	undertake not to amend or waive any term of or terminate any of those contracts on request
by the Chargor without your prior written consent.

This letter is governed by English law.

Yours faithfully,

             
                      
                      
                       

for [Insurer]

55

 

SCHEDULE 4

FORMS OF LETTER FOR PRIMARY CONTRACTS

PART 1

NOTICE TO COUNTERPARTY

To: [Counterparty]

Copy: [Collateral Agent]

[Date]

Dear Sirs,

Security agreement dated [•] between [•] and others and [•] (the Security Agreement)

This letter constitutes notice to you that under the Security Agreement, [Chargor] (the Chargor)
has assigned in favour of [•] as agent and trustee for the Secured Parties referred to in the
Security Agreement (the Collateral Agent) as first priority assignee all of its rights in respect
of [insert details of Primary Contract(s)] (the Primary
Contract[s]).

We confirm that:

	(a)	 	the Chargor will remain liable under [the] [each] Primary Contract to perform all the
obligations assumed by it under [the] [that] Primary Contract; and
	 
	(b)	 	none of the Collateral Agent, its agents, any receiver or any other person will at any time
be under any obligation or liability to you under or in respect of [the] [any] Primary
Contract.

The Chargor will also remain entitled to exercise all of its rights under [the] [each] Primary
Contract and you should continue to give notice under [the] [each] Primary Contract to the
relevant Chargor, unless and until you receive notice from the Collateral Agent to the contrary.
In this event, all of its rights will be exercisable by, and notices must be given to, the
Collateral Agent or as it directs.

Please
note that the Chargors has agreed that it will not [amend or waive any term of or] terminate
[any of] the Primary Contract[s] without the prior
consent of the Collateral Agent.

The instructions in this letter may not be revoked or amended without the prior written consent of
the Collateral Agent.

Please send to the Collateral Agent at [•] with a copy to ourselves the attached acknowledgement
confirming your agreement to the above and giving the further undertakings set out in the
acknowledgement.

We acknowledge that you may comply with the instructions in this letter without any further
permission from us and without any enquiry by you as to the justification for or validity of any
request, notice or instruction.

This
letter is governed by English law.

Yours faithfully,

56

 

	 	 	 
	 

(Authorised signatory)

	 	 
	 
	For [Chargor]
	 	 

57

 

PART 2

ACKNOWLEDGEMENT OF COUNTERPARTY

To: [Collateral Agent]

Copy: [Chargor] 

[Date]

Dear Sirs,

Security agreement dated [•] between [•] and others and [•] (the Security Agreement)

We confirm
receipt from [Chargor] (the Chargor) of a notice dated [•] of an assignment on the terms
of the Security Agreement of all of the Chargor’s rights in respect of [insert details of the
Primary Contract(s) (the Primary Contract[s]).

We confirm
that we:

	1.	 	accept the instructions contained in the notice and agree to comply with the notice;
	 
	2.	 	have not received notice of the interest of any third party in [any of) the Primary
Contract[s];
	 
	3.	 	undertake to disclose to you without any reference to or further authority from the Chargor
any information relating to [the][those] Primary Contract[s] which you may at any time
request;
	 
	4.	 	[undertake to notify you of any breach by the Chargor of [the] [any of those] Primary
Contract[s] and to allow you or any of the other Secured Parties (as defined in the Security
Agreement) to remedy that breach;] and
	 
	5.	 	undertake not to amend or waive any term of or terminate [the] [any of those] Primary
Contract[s] on request by the Chargor without your prior written consent.

This letter is governed by English law.

Yours faithfully,

	 	 	 
	 

(Authorised signatory)

	 	 
	 
	[Counterparty]
	 	 

58

 

SCHEDULE 5

FORM OF DEED OF ACCESSION

THIS DEED is dated [

BETWEEN:

	(1)	 	[•] (registered number
[•]) with its registered office at [•] (the Additional Chargor);
	 
	(2)	 	[•] for itself and as agent for each of the Chargors under and as defined in the Security
Agreement referred to below; and
	 
	(3)	 	[•] as agent and trustee for the Secured Parties under and as defined in the Security
Agreement referred to below (the Collateral Agent).

BACKGROUND:

	(A)	 	The Additional Chargor is a subsidiary of Novelis Inc.
	 
	(B)	 	The Chargors have entered into a guarantee and security agreement dated [•], 200[•]with the
Collateral Agent (the Security Agreement).
	 
	(C)	 	The Additional Chargor has agreed to enter into this Deed and to become a Chargor under the
Security Agreement and the Security Trust Deed.
	 
	(D)	 	The Additional Chargor will also, by execution of a separate instruments, become a party to
the Intercreditor Agreement as a Loan Party and the Security Trust Deed as a Chargor (as
defined in the Security Agreement).
	 
	(E)	 	It is intended that this document takes effect as a deed notwithstanding the fact that a
party may only execute this document under hand.

IT IS AGREED as follows:

	1.	 	Interpretation
	 
	 	 	Terms defined in the Security Agreement have the same meaning in this Deed unless given a
different meaning in this Deed. This Deed is a Loan Document.
	 
	2.	 	Accession

	 	(a)	 	With effect from the date of this Deed the Additional Chargor:

	 	(i)	 	will become a party to the Security Agreement as a Chargor; and
	 
	 	(ii)	 	will be bound by all the terms of the Security Agreement which
are expressed to be binding on a Chargor, including without limitation, the
guarantee contained in Section 2 of the Security Agreement.

	3.	 	Security
	 
	 	 	Without limiting the generality of the other provisions of this Deed and the Security
Agreement, the Additional Chargor:

59

 

	 	(a)	 	charges by way of a first legal mortgage all estates or interests in any freehold or
leasehold property owned by it (save for Excluded Real Property) and specified in Part 1
of the schedule to this Deed;
	 
	 	(b)	 	charges by way of a first legal mortgage all shares owned by it and specified in
Part 2 of the schedule to this Deed;
	 
	 	(c)	 	charges by way of a fixed charge all plant, machinery, computers, office equipment
or vehicles specified in Part 3 of the schedule to this Deed;
	 
	 	(d)	 	assigns absolutely, subject to a proviso for re-assignment on redemption, all of
its rights in respect of the agreements specified in Part 4 of the schedule to this Deed;
	 
	 	(e)	 	charges by way of a fixed charge all of its rights in respect of any Intellectual
Property specified in Part 5 of the schedule to this Deed; and
	 
	 	(f)	 	charges by way of a fixed charge all of its rights in respect of any amount
standing to the credit of any Security Account specified in Part 6 of the schedule to
this Deed.

	4.	 	Miscellaneous
	 
	 	 	With effect from the date of this Deed:

	 	(a)	 	the Security Agreement will be read and construed for all purposes, and the
Additional Chargor will take all steps and actions (including serving any notices), as if
the Additional Chargor had been an original party in the capacity of Chargor (but so that
the security created on this accession will be created on the date of this Deed);
	 
	 	(b)	 	any reference in the Security Agreement to this Deed and similar phrases will
include this Deed and all references in the Security Agreement to Schedule 1 (or any part
of it) will include a reference to the schedule to this Deed (or relevant part of it);
and
	 
	 	(c)	 	Novelis Europe Holdings Limited, for itself and as agent for each of the Chargors
under the Security Agreement, agrees to all matters provided for in this Deed.

	5.	 	Law
	 
	 	 	This Deed is governed by English law.
	 
	 	 	This Deed has been executed and delivered as a deed on the date stated at the beginning of
this Deed.

60

 

SCHEDULE

			
	 	 	 
	PART
	 	1

REAL PROPERTY

A. Original Property

Freehold/Leasehold Description

B. Excluded Real Property

Leasehold Description

			
	 	 	 
	PART
	 	2

SHARES

	 	 	 	 	 	 	 
	Name of	 	 	 	 	 	 
	company in	 	Name of nominee (if	 	 	 	 
	which shares	 	any) by whom shares	 	Class of	 	Number  of
	are held	 	are held	 	shares held	 	shares held
	[          ]

	 	[          ]
	 	[          ]
	 	[          ]

			
	 	 	 
	PART
	 	3

SPECIFIC PLANT AND MACHINERY

Description

			
	 	 	 
	PART
	 	4

SECURITY CONTRACTS

     A. Primary Contracts

Description

[e.g. Hedging Documents]

[e.g. Acquisition Documents]

[e.g. Intercompany Loan Agreements]

     B. Secondary Contracts

			
	 	 	 
	PART
	 	5

SPECIFIC INTELLECTUAL PROPERTY RIGHTS

Description

61

 

			
	 	 	 
	[PART
	 	6

SECURITY ACCOUNTS

Account number Sort code]

62

 

	 	 	 	 	 	 	 	 	 
	SIGNATORIES (TO DEED OF ACCESSION)	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	The Additional Chargor
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Executed as a deed by

	 	 	)	 	 	 	 	Director
	[                    ]

	 	 	)	 	 	 	 	 
	acting by

	 	 	)	 	 	 	 	 
	and

	 	 	)	 	 	 	 	Director/Secretary
	 
	 	 	 	 	 	 	 	 
	Novelis Europe Holdings Limited	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Executed as a deed by

	 	 	)	 	 	 	 	 
	[                     ]

	 	 	)	 	 	 	 	Director
	(for itself and as agent for each )
	 	 	 	 	 	 	 	 
	of the Chargors party to )
	 	 	 	 	 	 	 	 
	the Security Agreement

	 	 	)	 	 	 	 	 
	referred to in this Deed)

	 	 	)	 	 	 	 	Director/Secretary
	acting by

	 	 	)	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	The Collateral Agent
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	[                     ]
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	By:
	 	 	 	 	 	 	 	 

63

 

	 	 	 	 	 
	 	 	SIGNATORIES
	 
	 	 	 	 
	SIGNED as a Deed by

NOVELIS UK LIMITED acting by

a director and a director/its secretary:

	 	)

)

)

)
	 	

 

 

	 	 	 	 	 
	SIGNED
as a Deed by

NOVELIS EUROPE HOLDINGS

LIMITED acting by a director and a

director/its secretary:

	 	)

)

)

)
	 	

 

 

	 	 	 	 	 
	SIGNATORIES (to Security Agreement)
	 	 	 	 
	 
	 	 	 	 
	The Original Chargors
	 	 	 	 
	 
	 	 	 	 
	Executed as a deed by

	 	)
	 	Director
	NOVELIS UK LTD

	 	)	 	 
	acting by

	 	)	 	 
	 

	 	)
	 	Director/Secretary
	 
	 	 	 	 
	Executed as a deed by

	 	)
	 	Director
	NOVELIS EUROPE HOLDINGS LIMITED

	 	)	 	 
	acting by

	 	)	 	 
	 

	 	)
	 	Director/Secretary

The Collateral Agent

UBS AG, STAMFORD BRANCH

 

 

EXHIBIT M-4

Form of

SWISS SECURITY AGREEMENT

[See Tab # F.1-6, 11.]

EXHIBIT M-4-1

 

 

Execution Copy July 6, 2007

 

Agreement

between

Novelis AG

Zurich, Switzerland

and

LaSalle Business Credit, LLC

Chicago, USA

 

relating to the

Assignment of Trade Receivables, Inter-company Receivables

and Bank Accounts

 

 

Assignment Agreement (Novelis AG)

INDEX

	 	 	 	 	 
	1. INTERPRETATION
	 	 	4	 
	2. ASSIGNMENT AND ASSIGNOR’S OBLIGATIONS
	 	 	6	 
	3. UP-STREAM AND CROSS-STREAM SECURITIES: LIMITATION AND
WITHHOLDING TAX
	 	 	9	 
	4. RIGHTS AND OBLIGATIONS OF THE COLLATERAL AGENT
	 	 	10	 
	5 . REPRESENTATIONS AND WARRANTIES
	 	 	12	 
	6. FURTHER ASSURANCES OF THE ASSIGNOR
	 	 	12	 
	7. POWERS OF ATTORNEY
	 	 	12	 
	8. ASSIGNMENTS AND TRANSFERS
	 	 	13	 
	9. EFFECTIVENESS OF ASSIGNMENT
	 	 	13	 
	10. COSTS AND EXPENSES
	 	 	13	 
	11. NOTICES
	 	 	14	 
	12. SUCCESSOR AGENT
	 	 	14	 
	13. SEVERABILITY
	 	 	15	 
	14. WAIVERS AND MODIFICATIONS
	 	 	15	 
	15. COUNTERPARTS
	 	 	15	 
	16. LAW AND JURISDICTION
	 	 	15	 
	SCHEDULE 1
	 	 	19	 
	SCHEDULE 2
	 	 	20	 
	SCHEDULE 3
	 	 	21	 
	SCHEDULE 4
	 	 	22	 
	SCHEDULE 5
	 	 	23	 
	SCHEDULE 6
	 	 	25	 

 

 

Assignment Agreement (Novelis AG)

This Agreement (the “Agreement”) is made between:

	(1)	 	NOVELIS AG, a company incorporated under the laws of Switzerland, having its seat at
Bellerivestrasse 36, Zurich, Switzerland (the “Assignor”);

and

	(2)	 	LaSalle Business Credit, LLC, a company incorporated under the laws of Illinois, having its
seat at Chicago, acting for itself and in the name and on behalf of the Secured Parties (as
defined in this Agreement) (the “Collateral Agent”).

WHEREAS

	(A)	 	The Assignor and the Collateral Agent have entered into that certain Term Loan Agreement on
or about July 6, 2007 (the “Term Loan Agreement”) among, inter alia Novelis Inc., Novelis
Corporation, Novelis UK Ltd. and the Assignor (each as Borrower) and AV Aluminium Inc. (as
Parent Guarantor) and the Collateral Agent, ABN Amro Incorporated and UBS Securities LLC (each
as Lender) and other Lenders (as defined therein), whereby the
Borrowers were made available
certain term loan credit facilities by the Lenders.
	 
	(B)	 	The Assignor and the Collateral Agent have entered into that certain Revolving Credit
Agreement on or about July 6, 2007 (the “Revolving
Credit Agreement” and together with the
Term Loan Agreement: the “Credit Agreements”) among, inter alia Novelis Inc., Novelis
Corporation, Novelis UK Ltd. and the Assignor (each as Borrower) and AV Aluminium Inc. (as
Parent Guarantor) and the Collateral Agent, ABN Amro Incorporated and UBS Securities LLC (each
as Lender) and other Lenders (as defined therein), whereby the Borrowers were made available
certain revolving credit facilities by the Lenders.
	 
	(C)	 	On or about July 6, 2007, the Collateral Agent and the Assignor entered into an Intercreditor
Agreement governing the relationship and preference rights of the Term Loan Secured Parties
and Revolving Secured Parties (as these terms are defined below) among each other in relation
to their respective obligations under the Term Loan Agreement and Revolving Credit Agreement
(the “Intercreditor Agreement”).
	 
	(D)	 	On or about July 6, 2007, the Assignor entered into a guarantee agreement in favour of UBS
AG, Stamford Branch (acting for itself and for the Term Loan Secured Parties) (the “Term Loan
Guarantee”).

 

 

Assignment Agreement (Novelis AG)

	(E)	 	On or about July 6, 2007, the Assignor entered into a guarantee agreement in favour of the
Collateral Agent (acting for itself and for the Revolving Secured Parties) (the “Revolving
Guarantee”).
	 
	(F)	 	On or about July 6, 2007, the Assignor and Novelis Deutschland GmbH entered into a receivable
purchase agreement (the “Receivables Purchase Agreement”) pursuant to which substantially all
receivables owned by Novelis Deutschland GmbH under any of its supply contracts (the
“Purchased Receivables”) have been sold and assigned to the Assignor by way of a true sale.
	 
	(G)	 	The Collateral Agent and the Lenders under the Term Loan Agreement and Revolving Credit
Agreement require the Assignor to enter into this assignment for security purposes in favour
of the Collateral Agent, (i) first for the ratable benefit of the Lenders under the Term Loan
Agreement and (ii) second, upon full discharge of the Term Loan Secured Obligations (as
defined in this Agreement), for the ratable benefit of the Lenders under the Revolving Credit
Agreement.
	 
	(H)	 	The Assignor has agreed to assign (i) the Assigned Receivables, (ii) the Assigned
Inter-company Receivables and (iii) the Bank Accounts as security for the Secured Obligations
(as these terms are defined in Section 1 below) to the Collateral Agent, acting on behalf of
the Secured Parties (as defined in Section 1 below).

IT IS AGREED as follows:

1. INTERPRETATION

	1.1	 	In this Agreement:
	 
	 	 	“Assigned Bank Accounts” means all current or future rights, title, interest and action
(including any balances and accrued interest) the Assignor may have or acquire in relation to
any bank account which the Assignor now has or may at any time have
in the future vis-à-vis
any bank or other financial institution, including, but not limited to, the bank accounts
listed in Schedule 1, together with all rights and benefits relating thereto
including privileges and ancillary rights in respect thereof (art. 170 Swiss Code of
Obligations);
	 
	 	 	“Assigned Inter-Company Receivables” means all current or future receivables owed by
Affiliates to Assignor and arising in the course of business of the Assignor, whether
contingent or not, incorporated in a title or not, together with all rights and benefits
relating thereto including privileges and ancillary rights in respect thereof (art. 170 Swiss
Code of

 

 

Assignment
Agreement (Novelis AG)

Obligations); Currently existing Assigned Inter-Company Receivables are listed in Schedule 2;

	 	 	“Assigned Receivables” means all current or future receivables owed by customers or other trade
debtors (excluding any Affiliate) to the Assignor and arising in the course of business of the
Assignor, whether contingent or not, together with all rights and benefits relating thereto
including privileges and ancillary rights in respect thereof (art. 170 Swiss Code of Obligations)
but excluding any Purchased Receivables; Currently existing Assigned Receivables are listed in
Schedule 3;
	 
	 	 	“Assignment” means the assignments by the Assignor of the Assigned Inter-Company Receivables,
Assigned Receivables and Assigned Bank Accounts to the Collateral Agent, acting for itself and on
behalf of the Secured Parties pursuant to art 164 et seq. of the Swiss Code of Obligations;
	 
	 	 	“Business Day” shall mean one day on which the commercial banks in Zurich are open for normal
business transactions.
	 
	 	 	“Notice of Assignment to Affiliates” means the notice substantially in the form of Schedule 4 to
this Agreement;
	 
	 	 	“Notice of Assignment to Banks” means the notice substantially in the form of Schedule 5 to this Agreement;
	 
	 	 	“Notice of Assignment to Debtors” means the notice substantially in the form of Schedule 6 to this Agreement;
	 
	 	 	“Revolving Secured Obligations” means (i) all present and future obligations and liabilities
(whether actual or contingent and whether owed jointly or severally or in any other capacity
whatsoever) of the Assignor towards the Revolving Secured Parties under the Revolving Guarantee
and (ii) the Revolving Credit Obligations (as defined in the Intercreditor Agreement);
	 
	 	 	“Revolving Secured Parties” means the Revolving Credit Claimholders as defined in the
Intercreditor Agreement;
	 
	 	 	“Secured Obligations” means the Revolving Secured Obligations and the Term Loan Secured
Obligations;
	 
	 	 	“Secured Parties” means the Revolving Secured Parties and the Term Loan Secured Parties;

 

 

Assignment Agreement (Novelis AG)

	 	 	“Term Loan Secured Obligations” means (i) all present and future obligations and liabilities
(whether actual or contingent and whether owed jointly or severally or in any other capacity
whatsoever) of the Assignor towards the Term Loan Secured Parties under the Term Loan
Guarantee and (ii) the Term Loan Credit Obligations (as defined in the Intercreditor
Agreement);
	 
	 	 	“Term Loan Secured Parties” means the Term Loan Claimholders as defined in the Intercreditor
Agreement.
	 
	1.2	 	Unless defined otherwise herein, capitalized terms and expressions used herein shall have the
meaning ascribed to them in the Intercreditor Agreement and the Credit Agreements.
	 
	1.3	 	In this Agreement, (a) a person includes its successors and assigns; (b) headings are for
convenience of reference only and are to be ignored in construing this Agreement and (c)
references to any agreement or document are references to that agreement or document as
amended, supplemented or substituted from time to time, in accordance with its terms.

2. ASSIGNMENT AND ASSIGNOR’S OBLIGATIONS

	2.1	 	The Assignor agrees to assign by way of security to the Collateral Agent (acting for itself
and on behalf of the Secured Parties) the Assigned Receivables, the Assigned Inter-Company
Receivables and the Assigned Bank Accounts as security for the Secured Obligations until such
time as the Secured Obligations have been paid and discharged in full, and no further Secured
Obligations are capable of arising. The Assignor confirms that it fully understands and
accepts the definition of the term “Secured Obligations”.
	 
	2.2	 	For the purpose of effecting the Assignment, the Assignor hereby:
	 
	2.2.1	 	assigns by way of security to the Collateral Agent and the Secured Parties, the Assigned
Receivables, the Assigned Inter-Company Receivables and the Assigned Bank Accounts;
	 
	2.2.2	 	subject as set out in Section 2.10.2, transfers to the Collateral Agent all documents
evidencing the Assigned Receivables, the Assigned Inter-Company Receivables and the Assigned
Bank Accounts (whether incorporated in a title or not), including but not limited to any
written agreement, acknowledgment of debt, certificate, inter-company note, exchange of
letters, fax or e-mail).
	 
	2.3	 	The Collateral Agent (acting for itself and on behalf of the Secured Parties) expressly
accepts the Assignment provided for in Section 2.2.

 

 

Assignment Agreement (Novelis AG)

	2.4	 	The Assignor agrees and undertakes as follows:
	 
	2.4.1	 	Except for liens permitted under the Credit Agreements, the Assignor shall refrain from
granting any pledge, encumbrance or other third party rights affecting the Assigned
Receivables, the Assigned Inter-Company Receivables and the Assigned Bank Accounts and shall
refrain from any other act or omission that would adversely affect the Collateral Agent’s and
Secured Parties’ rights under this Agreement or any amounts that are or will become due under
any of the Assigned Receivables, the Assigned Inter-Company Receivables and the Assigned Bank
Accounts;
	 
	2.4.2	 	without the prior written consent of the Collateral Agent, the Assignor shall not enter into
any kind of arrangement that would provide for the non-assignability of any of the Assigned
Receivables, the Assigned Inter-Company Receivables and the Assigned Bank Accounts or subject
the assignability to the consent of a party other than the Collateral Agent;
	 
	2.4.3	 	the Assignor shall not enter into any arrangement by which the Assigned Receivables, the
Assigned Inter-Company Receivables and the Assigned Bank Accounts would be assigned to a party
other than the Collateral Agent and/or Secured Parties;
	 
	2.4.4	 	the Assignor shall deliver to the Collateral Agent within 10 Business Days following the end
of each calendar quarter (the first time 10 Business Days following September 30, 2007), a
list of all its Assigned Receivables, Assigned Inter-Company Receivables and Assigned Bank
Accounts outstanding as of the end of the relevant calendar quarter and assigned substantially
in the same form as set forth in Schedule 1 to 3 as appropriate;
	 
	2.4.5	 	upon the Collateral Agent’s written request and in no event more than once per year, unless
an Event of Default has occurred and is continuing, the Assignor shall deliver to the
Collateral Agent, within 10 Business Days from being so requested by the Collateral Agent, an
up-dated list of all its Assigned Receivables, Assigned Inter-Company Receivables and Assigned
Bank Accounts outstanding as of the day where the Collateral Agent’s request under this
paragraph was received substantially in the same form as set forth in Schedule 1 to 3
as appropriate;
	 
	2.5	 	Within 5 Business Days from the Closing Date, the Assignor shall notify the banks of the
assignment by way of security of the Assigned Bank Accounts by delivering to such banks a
Notice of Assignment to Banks substantially in the form of Schedule 5. The Assignor
shall simultaneously send a copy of any Notice of Assignment to Banks to the Collateral Agent.
For the purpose of this Agreement, the Assignor shall release the respective banks from the
banking secrecy to the extent required for the Collateral Agent to perform its rights and
obligations hereunder. Subject to and in accordance with the terms and conditions of the

 

 

Assignment Agreement (Novelis AG)

	 	 	Credit Agreements, the Assignor shall be authorized to use its bank accounts and any balance
on its bank accounts freely without restriction for as long as no Event of Default has
occurred and is continuing, except in the circumstances set forth in
Section 2.6 below.
	 
	2.6	 	Upon an Activation Notice (as this term is defined in the Credit Agreements) being sent in
accordance with Section 9.01 of the Revolving Credit Agreement, the Assignor shall not longer
be authorized to use its bank accounts and the Collateral Agent shall be entitled to transfer
any balance out of such bank accounts and apply such monies in accordance with Section 9.01 of
the Revolving Credit Agreement.
	 
	2.7	 	In the event where any bank would refuse to countersign the Notice of Assignment to Banks
listed in Schedule 5 and thereby would refuse to waive any first ranking security
interest and/or any right of set-off such bank may have in relation to the Assigned Bank
Accounts, the Assignor shall close the Assigned Bank Accounts and
open new bank account(s) (not
subject to such first ranking security interest or right of set-off) with one or more banking
institutions, which would then be assigned by way of security to the Collateral Agent as per
the terms of this Agreement.
	 
	2.8	 	Within 5 Business Days from the Closing Date, the Assignor shall notify its respective
Affiliates of the assignment by way of security of the Assigned Inter-Company Receivables by
delivering to such Affiliate a Notice of Assignment to Affiliates substantially in the form of
Schedule 4. The Assignor shall simultaneously send a copy of any Notice of Assignment
to Affiliates to the Collateral Agent.
	 
	2.9	 	Subject to and in accordance with the terms and conditions of the Credit Agreements, the
Assignor shall be authorized to collect any Assigned Receivables for as long as no Event of
Default has occurred and is continuing, and until such time as
notified by the Collateral
Agent, provided the proceeds of such Assigned Receivables are credited on the Assigned Bank
Accounts.
	 
	2.10	 	With respect to any Assigned Inter-Company Receivable and any Assigned Bank Account arising
after the date hereof, the Assignor undertakes to:
	 
	2.10.1	 	notify immediately the appropriate debtor of Assigned Inter-Company Receivables or Assigned
Bank Accounts by using the appropriate notification form; and
	 
	2.10.2	 	transfer to the Collateral Agent all documents evidencing such Assigned Inter-Company
Receivables and Assigned Bank Accounts (whether incorporated in a title or not), including but
not limited to any written agreement, acknowledgment of debt, certificate, inter-company note,
exchange of letters, fax or e-mail).

 

 

Assignment Agreement (Novelis AG)

	2.11	 	With respect to any Assigned Receivable arising after the date hereof, the Assignor
undertakes to:
	 
	2.11.1	 	instruct the debtor of such Assigned Receivable to discharge its obligations in relation
thereto exclusively on one of the Assigned Bank Accounts; and
	 
	2.11.2	 	upon the reasonable request of the Collateral Agent and upon giving appropriate prior
notice, allow representatives of the Collateral Agent to inspect, during normal business
hours, all documents evidencing such Assigned Receivable (whether incorporated in a title or
not), including but not limited to any written agreement, acknowledgment of debt, certificate,
inter-company note, exchange of letters, fax or e-mail.
	 
	2.12	 	Within 5 calendar days after the Collateral Agent has notified the Assignor that an Event of
Default has occurred and is continuing, the Assignor shall notify its current and future
debtors of Assigned Receivables of the Assignment by delivering to such debtors a Notice of
Assignment to Debtors substantially in the form of Schedule 6 but, where necessary or
appropriate, in the respective language of the addressee. The Assignor shall simultaneously
send a copy of any Notice of Assignment to Debtors to the Collateral
Agent.
	 
	2.13	 	After the Collateral Agent has notified the Assignor that an Event of Default has occurred
and is continuing, the Assignor shall co-operate with the Collateral Agent and use its best
commercially reasonable endeavors in assisting the Collateral Agent in collecting the Assigned
Receivables, Assigned Inter-Company Receivables and Assigned Bank Accounts.
	 
	2.14	 	Before the Collateral Agent has notified the Assignor that an Event of Default has occurred
and is continuing, the Assignor undertakes that the Assigned Receivables and the Assigned
Inter-Company Receivables be paid onto the Assigned Bank Accounts as set out in Schedule 1.
	 
	2.15	 	After the Collateral Agent has notified the Assignor that an Event of Default has occurred
and is continuing, the Assigned Receivables, the Assigned Inter-Company Receivables and the
Assigned Bank Accounts shall be paid to the Collateral Agent or as directed by the Collateral
Agent.

	3. 	 	UP-STREAM AND CROSS-STREAM SECURITIES: LIMITATION AND WITHHOLDING TAX
	 
	3.1	 	If and to the extent (i) the obligations of the Assignor under this Agreement are for the
exclusive benefit of the Affiliates of such Assignor (except for the (direct or indirect)
Subsidiaries of such Assignor) and (ii) that complying with such obligations would
constitute a repayment of capital (“Kapitalrückzahlung”) or the payment of a (constructive)
dividend

 

 

Assignment Agreement (Novelis AG)

	 	 	(“Dividendenausschüttung”), then the limitations set forth in Section 3 of the Term Loan
Guarantee and the Revolving Guarantee entered into by the Assignor shall apply to any
enforcement of the security interest created hereunder and the
proceeds of such enforcement.

	4. 	 	RIGHTS AND OBLIGATIONS OF THE COLLATERAL AGENT
	 
	4.1	 	Provided the Assignor has not complied with the obligations set out in Section 2.5 and 2.8
within the time limits set forth therein, the Collateral Agent shall be entitled, at any time
on or after the sixth Business Day after the Closing Date, to notify or to request the
Assignor to notify to the relevant debtor, the Assignment in respect of all or part of the
Assigned Inter-Company Receivables or the Assigned Bank Accounts:
	 
	4.1.1	 	In the form of Schedule 4 to this Agreement with respect to Assigned Inter-Company
Receivables;
	 
	4.1.2	 	In the form of Schedule 5 to this Agreement with respect to Assigned Bank Accounts;
	 
	4.2	 	The Collateral Agent shall be entitled to notify, or request the Assignor to notify, the
Assignment in respect of all or part of the Assigned Bank Accounts and Assigned Inter- Company
Receivables to the relevant debtors following the receipt of up-dated Schedule 1 or
Schedule 2 in accordance with Section 2.4.4.
	 
	4.3	 	The Collateral Agent has the right to request that the Assignor transfers to the Collateral
Agent all documents evidencing the Assigned Receivables, the Assigned Inter-Company
Receivables and the Assigned Bank Accounts (whether incorporated in a title or not), including
but not limited to any written agreement, acknowledgment of debt,
certificate, inter-company
note, exchange of letters, fax or e-mail).
	 
	4.4	 	After the Collateral Agent has notified the Assignor that an Event of Default has occurred
and is continuing, the Collateral Agent shall be entitled to request immediately the Assignor
to notify the debtors of the Assigned Receivables of the Assignment, and, if the Collateral
Agent has not received evidence of such notification within five calendar days in accordance
with Section 2.12, the Collateral Agent shall be entitled to notify on its own, the Assignment
in respect of all or part of the Assigned Receivables to the relevant debtors by a Notice of
Assignment to Debtors substantially in the form of
Schedule 6 to this Agreement.
	 
	4.5	 	After the Collateral Agent has notified the Assignor that an Event of Default has occurred
and is continuing or, with respect to the Assigned Receivables exclusively, 5 calendar days
after such notification:

 

 

Assignment Agreement (Novelis AG)

	4.5.1	 	the Collateral Agent shall be entitled, but not obligated, to collect any Assigned
Receivable, any Assigned Inter-Company Receivable and any Assigned Bank Account and to apply
the amounts collected towards the discharge of the Secured Obligations in accordance with the
Intercreditor Agreement;
	 
	4.5.2	 	the Collateral Agent shall have the right to access the premises of the Assignor to the full
extent necessary during ordinary business hours, at the sole discretion of the Collateral
Agent, to ascertain the existence and particulars of the Assigned Receivables, the Assigned
Inter-Company Receivables and the Assigned Bank Accounts;
	 
	4.5.3	 	the Collateral Agent shall be entitled, but not obligated, to undertake on its own
initiative and cost any acts it deems appropriate to collect any overdue or bad claim under
the Assigned Receivables, the Assigned Inter-Company Receivables and the Assigned Bank
Accounts and shall apply the amounts so collected towards the discharge of the Secured
Obligations in accordance with the Intercreditor Agreement; and
	 
	4.5.4	 	to the extent that collection of any Assigned Receivable, any Assigned Inter-Company
Receivable and/or any Assigned Bank Account is not possible or is deemed unduly burdensome in
the reasonable opinion of the Collateral Agent, the latter shall be entitled to sell such
Assigned Receivables, Assigned Inter-Company Receivables and/or Assigned Bank Accounts by
private sale (“Private Verwertung (Selbstverkauf)”), without regard to the enforcement
procedure provided for by the Swiss Federal Law on Debt Collection and Bankruptcy, and apply
the proceeds (less all costs and expenses) of such sale towards the discharge of the Secured
Obligations. The Collateral Agent shall apply such proceeds in accordance with the
Intercreditor Agreement. The Collateral Agent shall discharge its rights under this Agreement
with the same degree of care it would use in respect of its own property.
	 
	4.6	 	Upon repayment and discharge in full of the Secured Obligations, the Collateral Agent, at the
costs of the Assignor, shall promptly, and in any event within 5 Business Days from the full
discharge of the Secured Obligations, re-assign the remainder, if any, of the Assigned
Receivables, Assigned Inter-Company Receivables and/or Assigned Bank Accounts to the Assignor.
	 
	4.7	 	Notwithstanding anything herein to the contrary, the security interest granted to the
Collateral Agent for the benefit of the Secured Parties pursuant to this Agreement and the
exercise of any right or remedy by the Collateral Agent hereunder are subject to the
provisions of the Intercreditor Agreement. In the event of any conflict or inconsistency
between the provisions of the Intercreditor Agreement and this Agreement, the provisions of
the Intercreditor Agreement shall govern and control.

 

 

Assignment Agreement (Novelis AG)

5. REPRESENTATIONS AND WARRANTIES

	5.1	 	Without prejudice to the representations and warranties made under the Credit Agreements,
the Assignor represents and warrants to the Collateral Agent that:
	 
	5.1.1	 	it is a company duly established, validly existing and registered under the laws of
Switzerland, capable of suing and being sued in its own right and having the power and
authority and all necessary governmental and other material consents, approvals, licenses and
authorizations under any applicable jurisdiction to own its property and assets and to carry
on its business as currently conducted;
	 
	5.1.2	 	as long as this Agreement remains in force, the Assigned
Receivables, the Assigned Inter-Company Receivables and the Assigned Bank Accounts are and will continue to be (and any
Assigned Receivable, any Assigned Inter-Company Receivable and any Assigned Bank Account
coming into existence in the future will be) free and clear of any pledge, encumbrance or
other third party interests, with the exception of any liens permitted under the Credit
Agreements;
	 
	5.1.3	 	subject to the qualifications set out in the legal opinion of Borrowers’ Swiss counsel,
this Agreement constitutes (i) its legal, valid and binding obligations enforceable against
it pursuant to its terms and (ii) a valid and effective transfer of the Assigned Receivables,
the Assigned Inter-Company Receivables and the Assigned Bank Accounts from Assignor to the
Collateral Agent and the Secured Parties.

6. FURTHER ASSURANCES OF THE ASSIGNOR

	 	 	The Assignor shall promptly do all things and execute all documents that are required by the
Collateral Agent for the purpose of securing or perfecting the Assignment provided for in
this Agreement.

7. POWERS OF ATTORNEY

	 	 	The Assignor authorizes the Collateral Agent to be its attorney and in its name, on its
behalf and as its act to execute, deliver and perfect all documents (including giving
notifications and instructions to customers of the Assignor) and do all things that are
necessary for carrying out any obligation imposed on the Assignor under this Agreement,
provided that the Assignor does not carry out such obligation in due time in accordance with
the terms of this Agreement, or exercising any of the rights conferred on the Collateral
Agent by this Agreement or by law, in particular in connection with a private realization
(“Private Verwertung (Selbstverkauf)”)

 

 

Assignment Agreement (Novelis AG)

	 	 	but in any case only after the Collateral Agent has notified the Assignor that an Event of
Default has occurred and is continuing.

8. ASSIGNMENTS AND TRANSFERS

	 	 	The rights and obligations of the Assignor under this Agreement may not be assigned or
transferred without the prior written consent of the Collateral Agent. The assignment of the
rights and obligations of the Collateral Agent under this Agreement shall be restricted to
and made in accordance with Section 12 below. Nothing in this Agreement shall be construed
as limiting the right of the Secured Parties to assign their rights and obligations under
the Credit Agreements in accordance with the relevant provisions thereof.

9. EFFECTIVENESS OF ASSIGNMENT

	9.1	 	The security constituted by the Assignments under this Agreement shall be cumulative, in
addition to and independent of every other security which the Collateral Agent and/or Secured
Parties may at any time hold for the Secured Obligations or any rights, powers and remedies
provided by law.
	 
	9.2	 	No failure on the part of the Collateral Agent and/or Secured Parties to exercise, or delay
on its part in exercising, any rights hereunder shall operate as waiver thereof, nor shall any
single or partial exercise of any rights hereunder preclude any further or other exercise of
that or any other rights.
	 
	9.3	 	The Collateral Agent and/or Secured Parties shall not be liable by reason of taking any
action permitted by this Agreement.

10. COSTS AND EXPENSES

	 	 	The Assignor shall bear all reasonable costs and expenses (including, without limitation,
legal fees, stamp duties or other duties) incurred in connection with the execution,
perfection or implementation of the Assignment hereby constituted or the exercise of any
rights hereunder and the Assignor shall reimburse and indemnify the Collateral Agent for any
such costs or expenses reasonably incurred by it.

 

 

Assignment Agreement (Novelis AG)

11. NOTICES

	 	 	All notices or other communications made or given in connection with this Agreement shall be
made by facsimile or letter as follows:

	 	 	 	 	 	 	 
	 	 	a)	 	if to the Assignor
	 
	 	 	 	 	 	 
	 	 	 	 	Novelis AG
	 
	 	 	 	 	 	 
	 

	 	 	 	Address:
	 	Bellerivestrasse 36

CH- 8034 Zurich
	 

	 	 	 	Fax:
	 	+41 44 386 21 51
	 

	 	 	 	Attn:
	 	Legal Counsel
	 
	 	 	 	 	 	 
	 	 	b)	 	if to the Collateral Agent
	 
	 	 	 	 	 	 
	 	 	 	 	LaSalle Business Credit, LLC
	 
	 	 	 	 	 	 
	 

	 	 	 	Address
	 	135 South LaSalle Street, Suite 425
	 

	 	 	 	 	 	Chicago, Illinois 60603
	 

	 	 	 	Fax:
	 	+1 (312) 992-1501
	 

	 	 	 	Attn:
	 	Steven Friedlander
	 

	 	 	 	Email:
	 	steven.friedlander@abnamro.com

or to such other address or facsimile numbers or e-mail address as is notified in writing
from time to time by one party to the other party under this Agreement. Notices shall be
effective upon receipt.

	 	 	Each notice, communication and document given under or in connection with this Agreement
shall be in English or, if not, accompanied by an accurate translation thereof which has been
confirmed by authorized signatory of the party giving the same as being a true and accurate
translation.

12. SUCCESSOR AGENT

	 	 	If a successor of the Administrative Agent and Collateral Agent is appointed in accordance
with the Credit Agreements, the parties hereto shall enter into an agreement whereby the
Collateral Agent is replaced by the successor agent as party to this Agreement.

 

 

Assignment Agreement (Novelis AG)

13. SEVERABILITY

	 	 	If any provision of this Agreement is or becomes illegal, invalid or unenforceable in any
jurisdiction, this shall not affect or impair (i) the validity
or enforceability in that
jurisdiction of any other provision of this Agreement or (ii) the validity or enforceability
in any other jurisdiction of that or any other provision of this Agreement, and the parties
will negotiate in good faith to replace the relevant provision by another provision
reflecting as closely as possible the original intention and purpose of the parties.

14.
WAIVERS AND MODIFICATIONS

	 	 	This Agreement may be terminated, amended or modified only specifically and in writing
signed by the parties hereto.

15. COUNTERPARTS

	 	 	This Agreement may be executed in any number of counterparts, all of which taken together
shall constitute one and the same instrument.

16. LAW AND JURISDICTION

	16.1	 	This Agreement shall be governed by and construed in accordance with the substantive laws of
Switzerland.
	 
	16.2	 	Subject to the subsequent paragraph, the Commercial Court of the Canton of Zurich
(Handelsgericht des Kantons Zürich), Switzerland, shall have exclusive jurisdiction for all
disputes, differences or controversies relating to, arising from or in connection with this
Agreement.
	 
	16.3	 	Notwithstanding the foregoing, any legal action or proceeding with respect to this
Agreement may be brought in the courts of the State of New York or of the United States of
America for the Southern District of New York or any other competent court having
jurisdiction under the relevant Credit Agreement, provided that a legal action or proceeding
under any of the Credit Agreements is already pending before such court or a claim under any
of the Credit Agreements is submitted simultaneously with a claim in respect to this
Agreement to such court. By execution and delivery of this Agreement, the Assignor hereby
accepts for itself and in respect of its property, subject to the aforementioned condition,
the jurisdiction of the aforesaid courts. The parties hereto hereby irrevocably waive any
objection, including any objection to the laying of venue or based on
the grounds of forum non convenients, that any of

 

 

Assignment Agreement (Novelis AG)

	 	 	them may now or hereafter have to the bringing of any such action or proceeding in such
respective jurisdictions.
	 
	16.4	 	The Assignor hereby irrevocably designates, appoints and empowers Novelis Corporation, attn:
Charles Aley, Secretary, 6060 Parkland Blvd., Mayfield Heights OH 44124-4185. USA (telephone
number: +1 440 423 6917) (telecopy number: +1 440 423 6663 (the “Process Agent”), in the case
of any suit, action or proceeding brought in the United States of America as its designee,
appointee and agent to receive, accept and acknowledge for and on its behalf, and in respect
of its property, service of any and all legal process, summons, notices and documents that
may be served in any action or proceeding arising out of, or in connection with, this
Agreement. Such service may be made by mailing (by registered or certified mail, postage
prepaid) or delivering a copy of such process to the Assignor in care of the Process Agent at
the Process Agent’s above address, and the Assignor hereby irrevocably authorizes and directs
the Process Agent to accept such service on its behalf. Each Guarantor agrees that a final
judgment in any such action or proceeding shall be conclusive and may be enforced in other
jurisdictions by suit on the judgment or in any other manner provided
by law.

THE REMAINDER OF THIS PAGE HAS BEEN INTENTIONALLY LEFT BLANK

THE FOLLOWING TWO PAGES ARE THE SIGNATURE PAGES

 

 

Assignment Agreement (Novelis AG)

SIGNATURE PAGE

LaSalle Business Credit, LLC,

as Collateral Agent for itself and on behalf of the Secured Parties

 

 

Assignment Agreement (Novelis AG)

SIGNATURE PAGE

NOVELIS AG,

as Assignor

Date:

 

 

EXHIBIT M-5

Form of

GERMAN SECURITY AGREEMENT

[See Tab # G.2-3, 5-9.]

EXHIBIT M-5-1

 

 

SKADDEN ARPS

Execution Copy

NOVELIS Deutschland GmbH

as Pledgor

and

UBS AG, STAMFORD BRANCH

as Administrative Agent, Collateral Agent and Original Pledgee 1

ABN AMRO INCORPORATED

as Joint Lead Arranger, Joint Bookmanager and Original Pledgee 2

UBS SECURITIES LLC

as Joint Lead Arranger, Joint Bookmanager and Original Pledgee 3

and

other Parties

as Pledgees

 

SECOND RANKING ACCOUNT PLEDGE AGREEMENT

(VERPFÄNDUNG VON BANKKONTEN)

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	PAGE
	 
	 	 	 	 
	1. DEFINITIONS AND LANGUAGE
	 	 	2	 
	2. CREATION OF PLEDGES
	 	 	4	 
	3. SECURED OBLIGATIONS
	 	 	6	 
	4. DISPOSALS OVER ACCOUNTS
	 	 	6	 
	5. REALISATION OF THE PLEDGES
	 	 	6	 
	6. WAIVER OF PLEDGORS’ DEFENCES AND OF SUBROGATION
RIGHTS
	 	 	8	 
	7. RELEASE OF THE PLEDGES
	 	 	9	 
	8. DURATION AND INDEPENDENCE
	 	 	9	 
	9. REPRESENTATIONS AND WARRANTIES
	 	 	10	 
	10. UNDERTAKINGS OF THE PLEDGOR
	 	 	11	 
	11. LIMITATION OF ENFORCEMENT
	 	 	13	 
	12. ECONOMIC OWNERSHIP OF THE ACCOUNTS
	 	 	16	 
	13. INTERCREDITOR AGREEMENT
	 	 	16	 
	14. NOTICES
	 	 	17	 
	15. WAIVER
	 	 	18	 
	16. COUNTERPARTS
	 	 	18	 
	17. GOVERNING LAW AND JURISDICTION
	 	 	18	 
	18. LIABILITY AND INDEMNIFICATION
	 	 	19	 
	19. AMENDMENTS
	 	 	19	 
	20. ANNEXES, SCHEDULES
	 	 	19	 
	21. SEVERABILITY
	 	 	19	 
	SCHEDULE 1 LIST OF LENDERS
	 	 	1	 
	SCHEDULE 2 LIST OF BANK ACCOUNTS OF PLEDGOR
	 	 	1	 
	SCHEDULE 3 NOTICE OF PLEDGE
	 	 	1	 
	SCHEDULE 4 FORM OF ACKNOWLEDGEMENT
	 	 	3	 

Term Loan:
Account Pledge Agreement

 

 

This
ACCOUNT PLEDGE AGREEMENT (the “Agreement”) is made on July 6, 2007

Among:

	(1)	 	Novelis Deutschland GmbH, a limited liability company organized under the laws of Germany,
having its business address at Hannoversche Strasse 1, 37075 Göttingen, Germany which is
registered in the commercial register at the local court
(Amtsgericht) of Göttingen under HRB
772 (the “Pledgor”);
	 
	(2)	 	UBS AG, Stamford Branch, a company organised under the laws of Switzerland having its
business address at 677 Washington Blvd, Stamford, CT 06901 (the “Collateral Agent”,
“Administrative Agent” and “Original Pledgee 1”, as applicable),
	 
	(3)	 	ABN Amro Incorporated, a company organised under the laws of New York having its business
address at 55 E 52nd Street, New York, NY 10055 (the “Original Pledgee 2”);
	 
	(4)	 	UBS Securities LLC, a company organised under the laws of Delaware having its business
address at 677 Washington Blvd, Stamford, CT 06901 (the “Original Pledgee 3”);
	 
	(5)	 	the institutions listed in Schedule 1 (List of Original Lenders) hereto in their capacity as
lenders or other secured parties under or in connection with the Credit Agreement (as defined
below) (together with the Original Pledgee 1, the Original Pledgee 2 and the Original Pledgee
3, the “Original Pledgees”); and
	 
	(6)	 	the Future Pledgees, as defined herein.

WHEREAS:

	(A)	 	Pursuant to a credit agreement dated as of July 6, 2007 (the “Credit Agreement”) among
NOVELIS INC., a corporation formed under the Canada Business Corporations Act (the “Canadian
Borrower”), NOVELIS CORPORATION, a Texas corporation (the “U.S. Borrower” and, together with
the Canadian Borrower, the “Borrowers”), AV ALUMINUM INC., a corporation formed under the
Canada Business Corporations Act (“Holdings”), the other guarantors party thereto, the
Lenders (as defined below) party thereto,

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	 	 	UBS AG, STAMFORD BRANCH, as administrative agent (in such capacity, “Administrative
Agent”) for the Lenders, and as collateral agent (in such capacity, “Collateral Agent”)
for the Secured Parties, ABN AMRO INCORPORATED and UBS SECURITIES LLC, as joint lead
arrangers and joint bookmanagers (in such capacities, “Arrangers”), and the other agents
party thereto, the Lenders have agreed to extend credit in the form of Term Loans (the
“Loan”) to the Borrowers.
	 
	(B)	 	The Pledgor has entered into an agreement on the abstract acknowledgement of
indebtedness (Abstraktes Schuldanerkenntnis) with, inter alia, the Collateral Agent on or
about the date hereof (the “Abstract Acknowledgement of Debt”).
	 
	(C)	 	It is one of the conditions for granting the Loan that the Pledgor enters into this
Agreement.
	 
	(D)	 	In connection with an ABL revolving loan agreement dated on or about the date hereof,
(the “ABL Loan Agreement”), the Pledgor has agreed to grant a first ranking pledge over
its Accounts (as defined below) as security for the obligations arising under or in
connection with the ABL Loan Agreement.
	 
	(E)	 	The Pledgor has agreed to grant a second ranking pledge over its Accounts (as defined below) as security for the Pledgees’ (as defined below) respective
claims against the Loan Parties (as defined below) under or in connection with
the Credit Agreement.

NOW, IT IS AGREED as follows:

	1.	 	DEFINITIONS AND LANGUAGE
	 
	1.1	 	In this Agreement:

“Account Bank” means, with regard to each Account, the bank specified as an account bank in
Schedule 2 (List of Bank Accounts).

“Accounts” means the accounts specified in Schedule 1 (List of Bank Accounts).

“Business Days” means a day (other than a Saturday or a Sunday) on which banks are open for general
business in New York City and Frankfurt am Main.

“Future Pledgee” means any entity which may become a pledgee hereunder by way of (i) transfer of
the Pledges by operation of law following the transfer or assignment

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(including
by way of novation or assumption (Vertragsübernahme)) of any part of the Secured
Obligations from any of the Original Pledgees or Future Pledgee to such future pledgee and/or (ii)
accession to this Agreement by ratification pursuant to sub-clause 2.3 hereof as pledgee.

“Lenders” has the meaning given in the Credit Agreement.

“Pledgees” means the Original Pledgees and the Future Pledgees, and “Pledgee” means any of them.

“Pledges” means the pledges created pursuant to Clause 2.

“Secured Obligations” shall mean (a) obligations of the Borrowers and the other Loan Parties from
time to time arising under or in respect of the due and punctual payment of (i) the principal of
and premium, if any, and interest (including interest accruing (and interest that would have
accrued but for such proceeding) during the pendency of any bankruptcy, insolvency, receivership
or other similar proceeding, if allowed in such proceeding) on the Loans, when and as due, whether
at maturity, by acceleration, upon one or more dates set for prepayment or otherwise and (ii) all
other monetary obligations, including fees, costs, expenses and indemnities, whether primary,
secondary, direct, contingent, fixed or otherwise (including monetary obligations incurred during
the pendency of any bankruptcy, insolvency, receivership or other similar proceeding, regardless
of whether allowed or allowable in such proceeding), of the Borrowers and the other Loan Parties
under the Credit Agreement and the other Loan Documents, and (b) the due and punctual payment of
all obligations of the Borrowers and the other Loan Parties under each Hedging Agreement entered
into with any counterparty that is a Secured Party.

“Term Loan Collateral Agent Appointment Letter” shall mean a letter agreement whereby the
Collateral Agent is appointed as Collateral Agent by Secured Parties that enter into Hedging
Agreements.

“Trust Agreement” means the trust agreement between the Pledgor and the Novelis Deutschland GmbH
pursuant to which the Pledgor is the beneficiary of some or all of the accounts of Novelis
Deutschland GmbH.

“Trust Accounts” are the Accounts subject to the Trust Agreement and which are identified
accordingly in Schedule 2.

“Trust Account Beneficiary” means Novelis AG, a stock corporation organized under the laws of
Switzerland, having its business address at Bellerive 36, 8034 Zurich, Switzerland.

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	1.2	 	In this Agreement, references to a person include its successors and assigns, and
references to a document are references to that document as amended, restated, novated
and/or supplemented from time to time.
	 
	1.3	 	Capitalized terms not otherwise defined in this Agreement shall have the same meaning as
given in the Credit Agreement.
	 
	1.4	 	Unless otherwise indicated, the definition of a term in the singular shall include the
definition of such term in the plural and vice versa.
	 
	1.5	 	This Agreement is made in the English language. For the avoidance of doubt, the English
language version of this Agreement shall prevail over any translation of this Agreement.
However, where a German translation of a word or phrase appears in the text of this
Agreement, the German translation of such word or phrase shall prevail.
	 
	1.6	 	Any reference in this Agreement to a “Clause”, “sub-clause” or “Schedule” shall, subject
to any contrary indication, be construed as a reference to a clause, a sub-clause or a
schedule hereof.
	 
	2.	 	CREATION OF PLEDGES
	 
	2.1	 	The Pledgor hereby pledges to each of the Pledgees:
	 
	2.1.1	 	any present and future credit balances, including interest,
standing from time to time to the credit of,
	 
	(A)	 	its Accounts;
	 
	(B)	 	any present and future replacement accounts, sub-accounts, re-designated accounts and
renumbered accounts which are opened or will be opened in the future in replacement of, or
in connection with, its Accounts; and
	 
	2.1.2	 	all other present and future rights to receive payments in
connection with its Accounts, including claims for damages or unjust enrichment.
	 
	 
	2.2	 	Each of the Original Pledgees hereby accepts the Pledges for itself.

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	2.3	 	The Collateral Agent accepts, as representative without power
of attorney (Vertreter
ohne Vertretungsmacht) the respective Pledges for and on behalf of each Future Pledgee.
Each Future Pledgee will ratify and confirm the declarations and acts so made by the
Collateral Agent on its behalf by accepting the transfer or assignment (including by way of
novation or assumption (Vertragsübernahme)) of the Secured Obligations (or part of them)
from a Pledgee or by becoming party to any Loan Document or by executing a Term Loan
Collateral Agent Appointment Letter. Upon such ratification (Genehmigung) such Future
Pledgee becomes a party to this Agreement, it being understood that any future or
conditional claim (zukünftiger oder bedingter Anspruch) of such Future Pledgee arising
under the Credit Agreement shall be secured by the Pledges constituted hereunder.
	 
	2.4	 	All parties hereby confirm that the validity of the Pledges granted hereunder shall not be
affected by the Collateral Agent acting as representative without power of attorney for each
Future Pledgee.
	 
	2.5	 	The validity and effect of each of the Pledges shall be independent of the validity and the
effect of the other Pledges created hereunder. The Pledges to each of the Pledgees shall be
separate and individual pledges ranking pari passu with the other Pledges created hereunder.
	 
	2.6	 	The Pledges created hereunder shall be subordinated to any pledges created over the
Accounts in connection with the ABL Loan Agreement, but shall rank ahead of any other
security interest or third party right currently in existence or created in the future over
any of the Accounts, including the Account Bank’s pledges.
	 
	2.7	 	Each of the Pledges is in addition, and without prejudice, to any other security the
Pledgees may now or hereafter hold in respect of the Secured Obligations.
	 
	2.8	 	For the avoidance of doubt, the parties agree that nothing in this Agreement shall exclude
a transfer of all or part of the Pledges created hereunder by operation of law upon the
transfer or assignment (including by way of novation or assumption
(Vertragsübernahme)) of
all or part of the Secured Obligations by any Pledgee to a Future Pledgee.

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	3.	 	SECURED OBLIGATIONS
	 
	3.1	 	The security created hereunder secures the payment of (a) all Secured Obligations of the
Borrowers and the other Loan Parties arising under or in connection with the Credit
Agreement and the other Loan Documents and (b) the obligations under the Abstract
Acknowledgement of Indebtedness.
	 
	4.	 	DISPOSALS OVER ACCOUNTS
	 
	4.1	 	In relation to the Account Banks, the Pledgor shall be authorized to dispose over
(verfügen) its respective Accounts in the ordinary course of business. This authorization
shall, in particular, include the right to withdraw and transfer funds from its respective
Accounts. Each Account may only be closed with the prior written consent of the Collateral
Agent, acting on behalf of the Pledgees. The Pledgees, acting through the Collateral Agent,
shall be entitled to revoke the authorization granted under this Clause 4 at any time after
any of the events described in Clauses 5.1 or 5.4 has occurred.
	 
	4.2	 	Upon the occurrence of an Event of Default which is continuing, unremedied and unwaived,
the Collateral Agent, on behalf of the Pledgees, shall irrevocably and at any and all times
be entitled to (i) notify the Account Bank of the forthcoming enforcement of the Pledges
and (ii) instruct each and every Account Bank that as of receipt of such notice it shall no
longer allow any dispositions by the Pledgor over any amounts standing to the credit on the
respective Account. The Collateral Agent shall notify the Pledgor accordingly.
	 
	5.	 	REALISATION OF THE PLEDGES
	 
	5.1	 	The Pledges shall become enforceable if an Event of Default is continuing, unremedied and
unwaived, the requirements set forth in Section 1273 para. 2, 1204 et seq. of the German
Civil Code with regard to the enforcement of any of the Pledges are met (Pfandreife) and the
Collateral Agent, acting on behalf of the Pledgees, gives notice to the Pledgor that the
Pledges in question are enforceable. After the Pledges have become enforceable, the
Collateral Agent may in its absolute discretion enforce all or any part of these Pledges in
any manner it sees fit.

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	5.2	 	The realization of the Pledges (or any part thereof) shall not require a prior court
ruling or any other enforceable title (vollstreckbarer Titel). Section 1277 of the German
Civil Code (Bürgerliches Gesetzbuch) is thus excluded.
	 
	5.3	 	The Collateral Agent, acting on behalf of the Pledgees, shall be entitled to realize the
Pledges — either in whole or in part — in any legally permissible manner.
	 
	5.4	 	The Collateral Agent shall give the Pledgor at least 10 (ten) Business Days prior written
notice of the intention to realize any of the Pledges (the “Realization Notice”). Such
Realization Notice is not necessary if the observance of the notice period will have a
materially adversely affect the security interests of the Pledgees. Such Realization Notice
shall in particular not be required, if:
	 
	5.4.1	 	the Pledgor ceases to make payments to third parties generally (within the meaning of
Section 17 (2), Sentence 2 of the German Insolvency Regulation, Insolvenzordnung);
	 
	5.4.2	 	the Pledgor becomes over-indebted (within the meaning of Section 19 of the German
Insolvency Regulation), or illiquid (within the meaning of Section 17 of the German
Insolvency Regulation);
	 
	5.4.3	 	the Pledgor files an application for the institution of insolvency proceedings or similar
proceedings over its assets;
	 
	5.4.4	 	any third party files an application for the institution of insolvency proceedings or
similar proceedings over the assets of the Pledgor, provided such application is not
unfounded; or
	 
	5.4.5	 	a preliminary insolvency administrator (vorläufiger
Insolvenzverwalter) or an insolvency
administrator or any similar kind of receiver, liquidator or administrator has been
appointed over the assets of the Pledgor.
	 
	5.5	 	If the Collateral Agent, acting on behalf of the Pledgees, decides not to enforce the
Pledges over all of the Accounts, it shall be entitled to determine, in its sole
discretion, which of the Accounts shall be realized.

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	5.6	 	The Collateral Agent, acting on behalf of the Pledgees, may take all measures and
enter into all agreements with the Account Banks or any third-party creditor which it
considers necessary or expedient in connection with the realization of the balances on the
Accounts, taking into account the legitimate interests of the Pledgor. In particular, the
Collateral Agent may, on behalf of the Pledgor, declare the termination of time deposits
or similar contractual arrangements made in respect of the Accounts.
	 
	5.7	 	For the purpose of realizing the balances on the Accounts, the Pledgor shall, upon the
Collateral Agent’s request, acting on behalf of the Pledgees,
promptly (unverzüglich)
furnish the Collateral Agent with all documents of title and other relevant documents held
by the Pledgor, and shall, at its own expense, forthwith render all assistance which is
necessary or expedient in respect of the realization of the balances on the Accounts.
	 
	5.8	 	Following the realization of all or part of the Pledges, the net proceeds (net proceeds
shall mean proceeds less any taxes and costs) shall be used to satisfy the Secured
Obligations.
	 
	6.	 	WAIVER OF PLEDGORS’ DEFENCES AND OF SUBROGATION RIGHTS
	 
	6.1	 	The Pledgor hereby waives all defenses against enforcement that may be raised on the basis
of potential avoidance (Anfechtbarkeit) and set-off pursuant to Sections 1211, 770 of the
German Civil Code. This waiver shall not apply to a set-off with counterclaims that are (i)
uncontested (unbestritten) or (ii) based on a binding non- appealable court decision
(rechtskräftig festgestellt).
	 
	6.2	 	If the Pledges are enforced, or if the Pledgor has discharged any of the Secured
Obligations (or any part of them), Section 1225 of the German Civil Code (legal subrogation
of claims to a pledgor — Forderungsübergang auf den
Verpfänder) shall not apply, and no
rights of the Pledgees shall pass to the Pledgor by subrogation or otherwise. Further, the
Pledgor shall not at any time before, on or after an enforcement of the Pledges and as a
result of the Pledgor entering into this Agreement, be entitled to demand indemnification or
compensation from any Borrower, any Guarantor or any of its affiliates or to assign any of
these claims.

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	7.	 	RELEASE OF THE PLEDGES
	 
	7.1	 	Upon full and final satisfaction of all Secured Obligations, the Collateral Agent, acting on
behalf of the Pledgees, shall at the cost and expense of the Pledgor confirm to the Pledgor in
writing the release of the Pledges, do everything necessary to effect that release, and
surrender the surplus proceeds, if any, resulting from any realization of the Pledges to the
Pledgor. This shall not apply to the extent that the Pledgees have to surrender the Accounts or
such proceeds to a third party who is entitled to the Accounts or to such proceeds. For the
avoidance of doubt, the Parties are aware that, upon the complete and final satisfaction of
all Secured Obligations, the Pledges will expire and cease to exist due to their accessory
nature (Akzessorietät) by operation of German law.
	 
	7.2	 	At any time when the total value of the aggregate security granted by the Pledgor to secure
the Secured Obligations (the “Security”) which can be expected to be realised in the event of
an enforcement of the Security (realisierbarer Wert) exceeds 110% of the Secured Obligations
(the “Limit”) not only temporarily, the Pledgees shall on demand of the Pledgor release such
part of the Security (Sicherheitenfreigabe) as the Pledgees may in their reasonable discretion
determine so as to reduce the realisable value of the Security to the Limit.
	 
	8.	 	DURATION AND INDEPENDENCE
	 
	8.1	 	Without prejudice to Clause 8.2, in no event shall the Pledges expire before and unless all
Secured Obligations have been fully and finally discharged and there is no amount outstanding
under the Secured Obligations, whether for principal, interest, fees, discounts or other
costs, expenses, charges or otherwise.
	 
	8.2	 	The Pledges shall provide a continuing security and, to the largest extent possible under
applicable law, no change or amendment whatsoever in and to the Secured Obligations and to
any document relating to the Secured Obligations shall affect the validity of this Agreement
nor shall it limit the obligations which are imposed on the Pledgor hereunder.

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	8.3	 	This Agreement is in addition to, and independent of, any other
security or guarantee the Pledgees may now or hereafter hold in respect
of the Secured Obligations. None of such security or guarantee shall
prejudice, or shall be prejudiced by, the Pledges in any way.
	 
	9.	 	REPRESENTATIONS AND WARRANTIES
	 
	The Pledgor represents and warrants (sichert zu) to each of the Pledgees by way
of an independent guarantee (selbständiges Garantieversprechen) that, at the
date hereof:
	 
	9.1	 	except the rights of the Trust Account Beneficiary with respect to the
Trust Accounts created under the Trust Agreement, it is the unrestricted
legal and
economic owner of its respective Accounts;
	 
	9.2	 	except for the foreign accounts listed in Exhibit 1 to Schedule 2, it
does not own any other accounts in or outside the Federal Republic of
Germany other than its respective Accounts;
	 
	9.3	 	the information provided in this Agreement relating to its respective
Accounts is accurate and complete in all material respects;
	 
	9.4	 	except the rights of the Trust Account Beneficiary with respect to the
Trust Accounts created under the Trust Agreement and security for the
ABL Loan Agreement, its respective Accounts are free from any liens,
rights of retention (Zurückbehaltungsrechte), other encumbrances and
other third party rights;
	 
	9.5	 	the Pledges granted to Pledgees will (upon effectiveness of this Agreement
but subject to receipt of the executed schedule confirmation by the Account
Banks) will be subordinated only to the pledges over the Accounts created
in connection with the ABL Loan Agreement but will rank ahead of any other
current or future third party security interest over the Accounts;
	 
	9.6	 	the Pledges constituted hereunder are valid and
enforceable without enforceable judgment or other instrument
(vollstreckbarer Titel) subject to any
qualification in the legal opinion to be issued by the law firm of Noerr
Stiefenhofer Lutz in relation hereto; and

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	9.7	 	it has not ceased payments within the meaning of Section 17 (2), Sentence 2 of the
German Insolvency Regulation, nor is it over-indebted within the meaning of Section 19 of
the German Insolvency Regulation or in terms of the German generally accepted accounting
principles (Grundsätze ordnungsmäßiger
Buchführung), nor is it illiquid within the
meaning of Section 17 of the German Insolvency Regulation, nor is its illiquidity imminent
within the meaning of Section 18 of the German Insolvency Regulation.
	 
	10.	 	UNDERTAKINGS OF THE PLEDGOR

The Pledgor undertakes:

	10.1	 	to notify promptly (unverzüglich), substantially in the form set out in Schedule 3 (Notice
of Pledge), its Account Banks of the creation of the Pledges, and to obtain from each such
Account Bank to confirm vis-à-vis the Original Pledgee the receipt of the notice;
	 
	10.2	 	to ensure that its Account Banks release the Accounts from any charges (pledges, rights of
retention, rights of set-off, etc.), including charges created pursuant to the respective
Account Bank’s standard terms and conditions (Allgemeine
Geschäftsbedingungen), or
subordinate such rights, by the Account Bank signing a confirmation substantially in the form
set out in Schedule 4 (Form of Acknowledgement). It is understood among the Parties that a
failure by an Account Bank to submit such confirmation to the Original Pledgee does not
affect the validity or enforceability of the Pledges;
	 
	10.3	 	upon the occurrence of an Event of Default which is continuing, the Pledgor shall upon the
request of the Collateral Agent, acting on behalf of the Pledgees, deliver to the Collateral
Agent information on the current status of the Accounts;
	 
	10.4	 	to provide (and to instruct the Account Banks to provide) the Collateral Agent, on behalf of
the Pledgees, with all information, evidence and documentation which the Collateral Agent,
acting on behalf of the Pledgees, may reasonably request in connection with the
administration and realization of the Accounts. After any of the events described in Clauses
5.1 or 5.4 has occurred, (i) the Collateral Agent, acting on behalf of the Pledgees, is
hereby authorized to obtain all information and documents (including bank account extracts
and other information on the current status of the Accounts) directly from the

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	 	 	Account Banks in its own name and at the Pledgor’s costs, and (ii) the Pledgees and
their designees are permitted to inspect, audit and make copies of, and extracts from,
all records and all other papers in the possession of the Pledgor which pertain to the
Accounts;
	 
	10.5	 	and at the request of the Collateral Agent, acting on behalf of the Pledgees, to
promptly (unverzüglich) grant to the Collateral Agent, on behalf of the
Pledgees, pledges (substantially in the form of this Agreement) over any new
accounts governed by German law;
	 
	10.6	 	not to close or to terminate the Accounts unless any remaining balance in the Account to
be closed is transferred to another pledged Account prior to closure and the Collateral
Agent is notified thereof;
	 
	10.7	 	not to transfer any of the Accounts to another bank or relocate any of the Accounts to
another branch of the Account Bank unless such transfer does not affect the Pledges;
	 
	10.8	 	to obtain the Collateral Agent’s written consent prior to the establishment of a new
account, including any sub-account, re-designated account or renumbered account pursuant to
Clause 2.1.1(B) above. Upon the Pledgees’ request, the Pledgor shall give all declarations
and render all reasonable assistance which is necessary in order to perfect the Pledgees’
pledge over the so established account;
	 
	10.9	 	not to create or permit to subsist any encumbrance, except for any Permitted Lien, over
any of the Accounts, or knowingly do or permit to be done, anything which is likely to be
expected to jeopardize or otherwise prejudice the existence, validity or ranking of the
Pledges;
	 
	10.10	 	to inform the Collateral Agent, on behalf of the Pledgees, promptly
(unverzüglich) upon gaining knowledge of any attachments
(Pfändungen) of
third parties that relate to the Accounts or any other third-party measures,
except for the creation of a Permitted Lien, which impair or jeopardize the
Pledges. In the event of any such attachment, the Pledgor shall provide the
Collateral Agent with a copy of the attachment and/or transfer order
(Pfändungs- und/oder Überweisungsbeschluss) and any other documents
which the Collateral Agent, on behalf of the Pledgees, requests that are

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	 	 	necessary or expedient for a defense against such attachment. In addition, the Pledgor
shall inform the third party promptly (unverzüglich) in writing of the Pledges and
render, at its own expense, to the Collateral Agent, acting on behalf of the Pledgees,
all assistance required or expedient to protect its Pledges; and
	 
	10.11	 	The Pledgor shall, at its own expense, execute and do all such assurances, acts and
things as the Collateral Agent, acting on behalf of the Pledgees, may reasonably require

	 	10.11.1	 	for perfecting or protecting the security under this Agreement; and
	 
	 	10.11.2	 	in the case of the enforcement of security, to facilitate the realization of
all or any part of the collateral which is subject to this Agreement and the
exercise of all powers, authorities and discretions vested in the Pledgees.

	11.	 	LIMITATION OF ENFORCEMENT
	 
	11.1	 	Subject to Clause 11.2 through Clause 11.4 below, the Collateral Agent shall not enforce
the Pledges to the extent (i) the Pledges secure obligations of
one of the Pledgor’s
shareholders or of an affiliated company (verbundenes Unternehmen) of a shareholder within
the meaning of Section 15 of the German Stock Corporation Act (Aktiengesetz) (other than a
Subsidiary of the Pledgor or the Pledgor itself), and (ii) the enforcement of the Pledges for
such obligations would reduce, in violation of Section 30 of the German Limited Liability
Companies Act (GmbHG), the net assets (assets minus liabilities minus provisions and liability
reserves (Reinvermögen), in each case as calculated in accordance with generally accepted
accounting principles in Germany (Grundsätze
ordnungsmäßiger Buchührung) as consistently
applied by the Pledgor in preparing its unconsolidated balance sheets
(Jahresabschluß gemäß
§ 42 GmbHG, §§ 242, 264 HGB)) of the Pledgor to an amount that is insufficient to maintain its
registered share capital (Stammkapital) (or would increase an existing shortage in its net
assets below its registered share capital); provided that for the purpose of determining the
relevant registered share capital and the net assets, as the case may be:

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	 	11.1.1	 	The amount of any increase of the Pledgor’s registered share capital
(Stammkapital) implemented after the date of this Agreement that is effected
without the prior written consent of the Collateral Agent shall be deducted
from the registered share capital of the Pledgor;
	 
	 	11.1.2	 	any loans provided to the Pledgor by a direct or indirect shareholder or an
affiliate thereof (other than a Subsidiary of the Pledgor) shall be disregarded and
not accounted for as a liability to the extent that such loans are subordinated or
are considered subordinated under Section 32a GmbHG;
	 
	 	11.1.3	 	shareholder loans, other loans and contractual obligations and liabilities
incurred by the Pledgor in violation of the provisions of any of the Loan Documents
shall be disregarded and not accounted for as liabilities;
	 
	 	11.1.4	 	any assets that are shown in the balance sheet with a book value that, in the
opinion of the Collateral Agent, is significantly lower than their market value and
that are not necessary for the business of the Pledgor (nicht betriebsnotwendig)
shall be accounted for with their market value; and
	 
	 	11.1.5	 	the assets of the Pledgor will be assessed at liquidation values
(Liquidationswerte) if, at the time the managing directors prepare the balance
sheet in accordance with paragraph (b) below and absent the demand a positive going
concern prognosis (positive Fortbestehensprognose) cannot be established.

	11.2	 	The limitations set out in Clause 11.1 only apply:

	 	11.2.1	 	If and to the extent that the managing directors of the Pledgor have confirmed in
writing to the Collateral Agent within ten (10) Business Days of receipt of the
Realization Notice or the commencement of enforcement under this Agreement the
value of the Pledges which cannot be enforced without causing the net assets of the
Pledgor to fall below its registered share capital, or increase an existing
shortage in net assets below its registered share capital (taking into account the
adjustments set out above) and such

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	 	 	 	confirmation is supported by a current balance sheet and other evidence
satisfactory to the Collateral Agent and neither the Collateral Agent nor
any of the Secured Parties raises any objections against that confirmation
within five (5) Business Days after its receipt; or
	 
	 	11.2.2	 	if, within twenty (20) Business Days after an objection under paragraph
11.2.1 has been raised by the Collateral Agent or a Secured Party, the Collateral
Agent receives a written audit report (“Auditor’s Determination”) prepared at the
expense of the Pledgor by a firm of auditors of international standing and
reputation that is appointed by the Pledgor and reasonably acceptable to the
Collateral Agent, to the extent such report identifies the amount by which the net
assets of the Pledgor are necessary to maintain its registered share capital as at
the date of the Realization Notice or the commencement of enforcement (taking into
account the adjustments set out above). The Auditor’s Determination shall be
prepared in accordance with generally accepted accounting principles applicable in
Germany (Grundsätze ordnungsgemäßer Buchführung) as consistently applied by the
Pledgor in the preparation of its most recent annual balance sheet. The Auditor’s
Determination shall be binding for all Parties except for manifest error.

	11.3	 	In any event, the Collateral Agent, for and on behalf of the Secured Parties, shall be
entitled to enforce the Pledges up to those amounts that are undisputed between them and
the Pledgor or determined in accordance with Clause 11.1 and Clause 11.2. In respect of
the exceeding amounts, the Secured Parties shall be entitled to further pursue their
claims (if any) and the Pledgor shall be entitled to provide that the excess amounts are
necessary to maintain its registered share capital (calculated as at the date of the
Realization Notice or the commencement of enforcement and taking into account the
adjustments set out above). The Secured Parties are entitled to pursue those parts of the
Pledges that are not enforced by operation of Clause 11.1 above at any subsequent point in
time. This Clause 11 shall apply again as of the time such additional enforcements are
made.
	 
	11.4	 	Should it become legally permissible for managing directors of a German GmbH
(Gesellschaft mit beschränkter Haftung, Limited Liability Company) to enter into
guarantees in support of obligations of their shareholders without

Term Loan:
Account Pledge Agreement

 

 

	 	 	limitations, the limitations set forth in Clause 11.1 shall no longer apply. Should any
such guarantees become subject to legal restrictions that are less stringent than the
limitations set forth in Clause 11.1 above, such less stringent limitations shall apply.
Otherwise, Clause 11.1 shall remain unaffected by changes in applicable law.

12. ECONOMIC OWNERSHIP OF THE ACCOUNTS

The Pledgor hereby declares pursuant to Section 8 of the German Money Laundering Act
(Geldwäschegesetz) (i) that it is the economic owner (wirtschaftlicher Berechtigter) of its
Accounts other than the Trust Accounts and that it did not, and still does not, act for the
account of third parties in connection with the establishment and the maintenance of such
Accounts other than the Trust Accounts and (ii) that the Original Pledgee 10 is the economic
owner (wirtschaftlicher Berechtigter) of its Trust Accounts.

13. INTERCREDITOR AGREEMENT

Notwithstanding anything herein to the contrary, the Collateral granted to the Collateral Agent,
for the benefit of the Secured Parties, pursuant to this Agreement and the exercise of any right or
remedy by the Collateral Agent and the other Secured Parties hereunder are subject to the
provisions of the intercreditor agreement, dated as of July 6, 2007 (the “Intercreditor Agreement”), among Novelis Inc., a
corporation formed under the Canada Business Corporations Act, Novelis Corporation, a Texas
corporation, Novelis PAE Corporation, a Delaware corporation, Novelis Finances USA LLC, a Delaware
limited liability company, Novelis South America Holdings LLC, a Delaware limited liability
company, Aluminum Upstream Holdings LLC, a Delaware limited liability company, Novelis UK Limited,
a limited liability company incorporated under the laws of England and Wales with registered number
00279596, and Novelis AG, a stock corporation (AG) organized under the laws of Switzerland, AV
Aluminum Inc., a corporation formed under the Canada Business Corporations Act, the subsidiaries of
Holdings from time to time party thereto, ABN Amro Bank N.V., as Revolving Credit Administrative
Agent for the Revolving Credit Lenders (as defined in the Intercreditor Agreement), ABN Amro Bank
N.V., acting through its Canadian branch, as Revolving Credit Canadian Administrative Agent and as
Revolving Credit Canadian Funding Agent, LaSalle Business Credit, LLC, as Revolving Credit
Collateral Agent and as Revolving Credit Funding Agent and UBS

Term Loan:
Account Pledge Agreement

 

 

AG, Stamford Branch as Term Loan Administrative Agent and as Term Loan Collateral Agent and
certain other persons which may be or become parties thereto or become bound thereto from time
to time. In the event of any conflict or inconsistency between the provisions of the
Intercreditor Agreement and this Agreement, the provisions of the Intercreditor Agreement shall
govern and control.

	14.	 	NOTICES
	 
	14.1	 	Any notice or other communication in connection with this Agreement shall be in
writing and shall be delivered personally, sent by registered mail or sent by fax (with
confirmation copy by registered mail) to the following addresses:

14.1.1 If to the Pledgees and Collateral Agent:

	 	 	 	 	 
	 

	 	Address:
	 	UBS AG, Stamford Branch
	 
	 	 	 	 
	 

	 	 	 	677 Washington Boulevard

Stamford, Connecticut 06901
	 

	 	Attention:
	 	Christopher Gomes
	 

	 	Fax: 	 	+ 1.203.719-3180
	 

	 	Email:
	 	Christopher.Gomes@UBS.com
	 
	 	 	 	 
	 

	 	with a copy to:	 	 
	 
	 	 	 	 
	 

	 	 	 	Skadden, Arps, Slate, Meagher & Flom LLP
	 

	 	 	 	333 West Wacker Drive, Suite 2100
	 

	 	 	 	Chicago, IL 60606, USA
	 

	 	 	 	Attention: Seth E. Jacobson
	 

	 	 	 	Telecopier No.: (312) 407-8511
	 

	 	 	 	Phone No.: (312) 407-0889

14.1.2
If to Pledgor:

	 	 	 	 	 
	 

	 	Address:
	 	Novelis Deutschland GmbH
	 

	 	 	 	Hannoversche Straße 1,
	 

	 	 	 	37075 Göttingen, Germany
	 
	 

	 	Attention:
	 	Geschäftsführung
	 
	 	 	 	 
	 

	 	Fax:
	 	+49 551 304 4902
	 
	 	 	 	 
	 

	 	or to such other address as the recipient may notify or may have notified to the other
party in writing.

Term Loan:
Account Pledge Agreement

 

 

	14.2	 	Any notice or other communication under this Agreement shall be in English or in
German. If in German, such notice or communication shall be accompanied by a
translation into English.
	 
	15.	 	WAIVER
	 
	15.1	 	No failure to exercise or any delay in exercising any right or remedy hereunder by the
Pledgees shall operate as a waiver hereunder. Nor shall any single or partial exercise of
any right or remedy prevent any further or other exercise thereof or the exercise of any
right or remedy.
	 
	15.2	 	Any rights of the Pledgees pursuant to this Agreement, including the rights under
this Clause, may be waived only in writing.
	 
	16.	 	COUNTERPARTS
	 
	16.1	 	This Agreement may be executed in any number of counterparts and by different parties
hereto in separate counterparts, each of which shall be deemed to be an original, but all
of which taken together shall constitute one and the same agreement. Delivery of an
executed counterpart of this Agreement by telecopier shall be equally as effective as
delivery of an original executed counterpart of this Agreement. Any party delivering an
executed counterpart of this Agreement by telecopier also shall deliver an original
executed counterpart of this Agreement but the failure to deliver an original executed
counterpart shall not affect the validity, enforceability, and binding effect of this
Agreement.
	 
	17.	 	GOVERNING LAW AND JURISDICTION
	 
	17.1	 	This Agreement shall be governed by and construed in accordance with the
laws of the Federal Republic of Germany.
	 
	17.2	 	For any disputes arising out of or in connection with this Agreement the courts
in Frankfurt am Main, Federal Republic of Germany shall have exclusive
jurisdiction. The Pledgees, however, shall also be entitled to take legal action

Term Loan: Account Pledge Agreement

 

 

	 	 	against the Pledgor before any other court having jurisdiction over the Pledgor or any
of the Pledgor’s assets.
	 
	18.	 	LIABILITY AND INDEMNIFICATION
	 
	18.1	 	Without extending the Collateral Agent’s liability as set forth in Section 10.09
of the Credit Agreement, neither of the Pledgees nor the Collateral Agent shall
be liable for any loss or damage suffered by the Pledgor except for such loss
or damage which is incurred as a result of the willful misconduct or gross
negligence of a Pledgee or the Collateral Agent.
	 
	18.2	 	The Pledgor shall indemnify the Pledgees and the Collateral Agent and any
person appointed by either the Pledgees or the Collateral Agent under this
Agreement against any losses, actions, claims, expenses, demands and
liabilities which are incurred by or made against the Pledgees and/ or the
Collateral Agent for any action or omission in the exercise of the powers
contained herein other than to the extent that such losses, actions, claims,
expenses, demands and liabilities are incurred by or made against the Pledgees
and/ or the Collateral Agent as a result of the gross negligence (grobe
Fahrlässigkeit) or willful misconduct (Vorsatz) of the Pledgees and/ or the
Collateral Agent, as the case may be.
	 
	19.	 	AMENDMENTS
	 
	Any amendment to, or modification of, this Agreement, including this Clause, shall be effective
only if made in writing, unless mandatory law provides for more stringent formal requirements.
	 
	20.	 	ANNEXES, SCHEDULES
	 
	All Schedules to this Agreement shall form an integral part hereof.
	 
	21.	 	SEVERABILITY
	 
	21.1	 	Should any provision of this Agreement be or become invalid or unenforceable, or should
this Agreement be accidentally incomplete or become incomplete, this shall not affect the
validity or enforceability of the remaining provisions hereof. In lieu of the invalid or
unenforceable provision

Term Loan: Account Pledge Agreement

 

 

		 	or in order to remedy any incompleteness, a provision shall apply which comes as close
as possible to that which the Parties had intended or would have intended if they had
considered the matter. In the event that any Pledge granted under this Agreement shall
be impaired or be or become invalid or unenforceable this shall not affect the validity
or enforceability of any other Pledge granted under this Agreement.
	 
	21.2	 	To the extent that the Pledges have not been properly created or, where applicable,
their nominal denominations have not been made in Euro, the Pledgor undertakes that it will
without promptly (unverzüglich) cure any legal defects, make all necessary acts, and (in
the event that these legal defects render this Agreement invalid or otherwise affect the
perfection and enforceability of the security interest created thereby) re-execute this
Agreement.

Term Loan: Account Pledge Agreement

 

 

Schedule 1

List of Lenders and other Secured Parties

UBS Loan Finance LLC, a company set up under the laws of Delaware, 677 
Washington
Boulevard, Stamford, CT 06901

UBS AG Canada Branch, 161 Bay Street, BCE Place, 41/F, Toronto, Ontario M5J 2S1

Term Loan: Account Pledge Agreement

 

 

SCHEDULE 2

LIST OF BANK ACCOUNTS OF PLEDGOR

List of Bank Accounts — Novelis Deutschland GmbH

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Bank Sort	 	 	 	 	 	 	 	 	 	 	 	 
	Country	 	Ort	 	Bank	 	Code (BLZ)	 	Account Nr.	 	Currency	 	Notes	 	Owner	 	Location	 	Contact
	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Hannoversche Str. 1 -	 	 
	 

	 	 	 	 	 	 	 	 		 	 	 	 	 	 	Novelis Germany
	 	37075 Göttingen -
	 	Christoph
	Germany

	 	Berlin
	 	Commerzbank
	 	100 400 00
	 	 	205991300*	 	 	EUR
	 	One-Way Pool
	 	GmbH
	 	Germany
	 	Bienwald
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Hannoversche Str. 1 -	 	 
	 

	 	 	 	 	 	 	 	 		 	 	 	 	 	 	Novelis Germany
	 	37075 Göttingen -
	 	Christoph
	Germany

	 	Berlin
	 	Commerzbank
	 	100 400 00
	 	 	205991300*	 	 	CAD
	 	One-Way Pool
	 	GmbH
	 	Germany
	 	Bienwald
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Hannoversche Str. 1 -	 	 
	 

	 	 	 	 	 	 	 	 		 	 	 	 	 	 	Novelis Germany
	 	37075 Göttingen -
	 	Christoph
	Germany

	 	Berlin
	 	Commerzbank
	 	100 400 00
	 	 	205991300*	 	 	CHF
	 	One-Way Pool
	 	GmbH
	 	Germany
	 	Bienwald
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Hannoversche Str. 1 -	 	 
	 

	 	 	 	 	 	 	 	 		 	 	 	 	 	 	Novelis Germany
	 	37075 Göttingen -
	 	Christoph
	Germany

	 	Berlin
	 	Commerzbank
	 	100 400 00
	 	 	205991300*	 	 	DKK
	 	One-Way Pool
	 	GmbH
	 	Germany
	 	Bienwald
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Hannoversche Str. 1 -	 	 
	 

	 	 	 	 	 	 	 	 		 	 	 	 	 	 	Novelis Germany
	 	37075 Göttingen -
	 	Christoph
	Germany

	 	Berlin
	 	Commerzbank
	 	100 400 00
	 	 	205991300*	 	 	GBP
	 	One-Way Pool
	 	GmbH
	 	Germany
	 	Bienwald
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Hannoversche Str. 1 -	 	 
	 

	 	 	 	 	 	 	 	 		 	 	 	 	 	 	Novelis Germany
	 	37075 Göttingen -
	 	Christoph
	Germany

	 	Berlin
	 	Commerzbank
	 	100 400 00
	 	 	205991300*	 	 	SEK
	 	One-Way Pool
	 	GmbH
	 	Germany
	 	Bienwald
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Hannoversche Str. 1 -	 	 
	 

	 	 	 	 	 	 	 	 		 	 	 	 	 	 	Novelis Germany
	 	37075 Göttingen -
	 	Christoph
	Germany

	 	Berlin
	 	Commerzbank
	 	100 400 00
	 	 	205991300*	 	 	USD
	 	One-Way Pool
	 	GmbH
	 	Germany
	 	Bienwald
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

 

			
	*	 	The Accounts marked with an Asterisk are the “Trust Accounts”, and the respective banks are the
“Trust Account Banks”

Term Loan: Account Pledge Agreement

 

 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Bank Sort	 	 	 	 	 	 	 	 	 	 	 	 
	Country	 	Ort	 	Bank	 	Code (BLZ)	 	Account Nr.	 	Currency	 	Notes	 	Owner	 	Location	 	Contact
	Germany

	 	Berlin
	 	Commerzbank
	 	100 400 00
	 	 	205991302	 	 	EUR
	 	Hauptkonto

Währung
	 	Novelis Germany

GmbH
	 	Hannoversche Str. 1 -

 37075 Göttingen -

Germany
	 	Christoph

Bienwald
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Germany

	 	Berlin
	 	Commerzbank
	 	100 400 00
	 	 	205991302	 	 	CAD
	 	Hauptkonto

Währung
	 	Novelis Germany

GmbH
	 	Hannoversche Str. 1

-37075 Göttingen -

Germany
	 	Christoph

Bienwald
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Germany

	 	Berlin
	 	Commerzbank
	 	100 400 00
	 	 	205991302	 	 	CHF
	 	Hauptkonto

Währung
	 	Novelis Germany

GmbH
	 	Hannoversche Str. 1 -

37075 Göttingen -

Germany
	 	Christoph

Bienwald
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Germany

	 	Berlin
	 	Commerzbank
	 	100 400 00
	 	 	205991302	 	 	DKK
	 	Hauptkonto

Währung
	 	Novelis Germany

GmbH
	 	Hannoversche Str 1 -

37075 Göttingen -

Germany
	 	Christoph

Bienwald
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Germany

	 	Berlin
	 	Commerzbank
	 	100 400 00
	 	 	205991302	 	 	GBP
	 	Hauptkonto

Währung
	 	Novelis Germany

GmbH
	 	Hannoversche Str. 1 -

37075 Göttingen -

Germany
	 	Christoph

Bienwald
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Germany

	 	Berlin
	 	Commerzbank
	 	100 400 00
	 	 	205991302	 	 	SEK
	 	Hauptkonto

Währung
	 	Novelis Germany

GmbH
	 	Hannoversche Str. 1 -

37075 Göttingen -

Germany
	 	Christoph

Bienwald
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Germany

	 	Berlin
	 	Commerzbank
	 	100 400 00
	 	 	205991302	 	 	USD
	 	Hauptkonto

Währung
	 	Novelis Germany

GmbH
	 	Hannoversche Str. 1 -

37075 Göttingen -

Germany
	 	Christoph

Bienwald
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Germany

	 	Berlin
	 	Commerzbank
	 	100 400 00
	 	 	205991301	 	 	USD
	 	Metall
	 	Novelis Germany

GmbH
	 	Hannoversche Str. 1 -

37075 Göttingen -

Germany
	 	Christoph

Bienwald
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Germany

	 	Berlin
	 	Commerzbank
	 	100 400 00
	 	 	205991301	 	 	EUR
	 	Rentenkonto
	 	Novelis Germany

GmbH
	 	Hannoversche Str. 1 -

37075 Göttingen -

Germany
	 	Christoph

Bienwald
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Germany

	 	Berlin
	 	Commerzbank
	 	100 400 00
	 	 	205995400	 	 	EUR
	 	ATZ-

Gebührenbelas

tungen
	 	Novelis Germany

GmbH
	 	Hannoversche Str. 1 -

37075 Göttingen -

Germany
	 	Christoph

Bienwald
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Germany

	 	Berlin
	 	Commerzbank
	 	100 400 00
	 	 	205995408	 	 	EUR
	 	Sicherheiten/R

ücklagen ATZ
	 	Novelis Germany

GmbH
	 	Hannoversche Str. 1 -

37075 Göttingen -

Germany
	 	Christoph

Bienwald

Term Loan: Account Pledge Agreement

 

 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Bank Sort	 	 	 	 	 	 	 	 	 	 	 	 
	Country	 	Ort	 	Bank	 	Code(BLZ)	 	Account Nr.	 	Currency	 	Notes	 	Owner	 	Location	 	Contact
	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Hannoversche Str. 1 -	 	 
	Germany

	 	Berlin
	 	Commerzbank
	 	100 400 00
	 	 	205991309	 	 	EUR
	 	Festgelder
	 	Novelis Germany

GmbH
	 	37075 Göttingen -

Germany
	 	Christoph

Bienwald
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Hannoversche Str. 1 -	 	 
	Germany

	 	Berlin
	 	Commerzbank
	 	100 400 00
	 	 	205991309	 	 	GBP
	 	Festgelder
	 	Novelis Germany

GmbH
	 	37075 Göttingen -

Germany
	 	Christoph

Bienwald
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Hannoversche Str. 1 -	 	 
	Germany

	 	Berlin
	 	Commerzbank
	 	100 400 00
	 	 	209550300	 	 	EUR
	 	Holding
	 	Novelis Aluminium 

Holding Co.
	 	37075 Göttingen -

Germany
	 	Christoph

Bienwald
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Hannoversche Str. 1 -	 	 
	Germany

	 	Berlin
	 	Commerzbank
	 	100 400 00
	 	 	1766005	 	 	EUR
	 	 	 	Novelis Germany

GmbH
	 	37075 Göttingen -

Germany
	 	Christoph

Bienwald
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Hannoversche Str. 1 -	 	 
	Germany

	 	Lüdenscheid
	 	Commerzbank
	 	458 400 26
	 	 	6208870	 	 	EUR
	 	 	 	Novelis Germany

GmbH
	 	37075 Göttingen -

Germany
	 	Christoph

Bienwald
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Hannoversche Str. 1 -	 	 
	Germany

	 	Plettenberg
	 	 Commerzbank
	 	458 410 31
	 	 	8203200	 	 	EUR
	 	 	 	Novelis Germany

GmbH
	 	37075 Göttingen -

Germany
	 	Christoph

Bienwald
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Hannoversche Str. 1 -	 	 
	Germany

	 	Aschersleben
	 	 Commerzbank
	 	810 400 00
	 	 	6526172	 	 	EUR
	 	 	 	Novelis Germany

GmbH
	 	37075 Göttingen -

Germany
	 	Christoph

Bienwald
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Hannoversche Str. 1 -	 	 
	Germany

	 	Nürnberg
	 	Commerzbank
	 	760 400 61
	 	 	521823501	 	 	EUR
	 	Rentenkonto
	 	Novelis Germany

GmbH
	 	37075 Göttingen -

Germany
	 	Christoph

Bienwald

Term Loan: Account Pledge Agreement

 

 

Exhibit 1 to Schedule 2 — foreign accounts

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Bank Sort	 	 	 	 	 	 	 	 	 	 	 	 
	Country	 	Ort	 	Bank	 	Code(BLZ)	 	Account Nr.	 	Currency	 	Notes	 	Owner	 	Location	 	Contact
	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Hannoversche Str. 1 -	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Novelis Germany
	 	37075 Göttingen -
	 	Christoph
	Spain

	 	Madrid
	 	Commerzbank
	 	COBAESM
	 	 	3631686	 	 	EUR
	 	 	 	GmbH
	 	Germany
	 	Bienwald
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Hannoversche Str. 1 -	 	 
	Great

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Novelis Germany
	 	37075 Göttingen -
	 	Christoph
	Britain

	 	London
	 	Commerzbank
	 	COBAGB2
	 	 	1152214	 	 	GBP
	 	 	 	GmbH
	 	Germany
	 	Bienwald
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Hannoversche Str. 1 -	 	 
	 

	 	 	 	Nordea Pamki
	 	NDEAFIHH
	 	 	15713027756	 	 	 	 	 	 	Novelis Germany
	 	37075 Göttingen -
	 	Christoph
	Finland

	 	Espoo
	 	Suomi Oyi
	 	XXX
	 	 		 	 	EUR
	 	 	 	GmbH
	 	Germany
	 	Bienwald
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Hannoversche Str. 1 -	 	 
	 

	 	 	 	Den Danske
	 	DABADKK
	 	 	 	 	 	 	 	 	 	Novelis Germany
	 	37075 Göttingen -
	 	Christoph
	Denmark

	 	Ishoj
	 	Bank
	 	KXXX
	 	 	3326147966	 	 	DKK
	 	 	 	GmbH
	 	Germany
	 	Bienwald
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Hannoversche Str. 1 -	 	 
	 

	 	Levallois-
	 	Societe
	 	 	 	 	00020491387	 	 	 	 	 	 	Novelis Germany
	 	37075 Göttingen -
	 	Christoph
	France

	 	Perret
	 	Generale
	 	SOGEFRPP
	 	 		 	 	EUR
	 	 	 	GmbH
	 	Germany
	 	Bienwald
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Hannoversche Str. 1 -	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Novelis Germany
	 	37075 Göttingen -
	 	Christoph
	Netherlands

	 	Amsterdam
	 	Postbank
	 	PSTBNL21
	 	 	1775145	 	 	EUR
	 	 	 	GmbH
	 	Germany
	 	Bienwald
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Hannoversche Str. 1 -	 	 
	 

	 	 	 	 	 	 	 	 	210073796440	 	 	 	 	 	 	Novelis Germany
	 	37075 Göttingen -
	 	Christoph
	Belgium

	 	Brüssel
	 	Fortis Bank
	 	GEBABEBB
	 	 		 	 	EUR
	 	 	 	GmbH
	 	Germany
	 	Bienwald
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Hannoversche Str. 1 -	 	 
	 

	 	 	 	ABN AMRO
	 	 	 	 	 	 	 	 	 	 	 	Novelis Germany
	 	37075 Göttingen -
	 	Christoph
	Netherlands

	 	Dordrecht
	 	Bank NV
	 	ABNANL2A
	 	 	417007310	 	 	EUR
	 	 	 	GmbH
	 	Germany
	 	Bienwald

Term Loan: Account Pledge Agreement

 

 

SCHEDULE 3

NOTICE OF PLEDGE

[Letterhead
of Pledgor]

	 	 	 
	From:

	 	Novelis Deutschland
	 

	 	Hannoversche Strabe 1 
	 

	 	37075 Göttingen 

Germany
	 
	 	 
	To:

	 	[     ]
	 

	 	[     ]
	 

	 	Germany
	 
	 	 
	Date:

	 	[     ]
	 
	Re:

	 	Accounts Nos. [     ] (the “Accounts”)

We hereby give you the notice that by a pledge agreement dated [•] 2007 (the “Account Pledge
Agreement”) we have pledged in favor of UBS AG, Stamford Branch (the “Collateral Agent”) and the
other pledgees set out in the Account Pledge Agreement (together with the Collateral Agent, the
“Secured Parties”) all present and future credit balances, including all interest payable, from
time to time standing to the credit on each of the above Accounts (which shall include all
sub-accounts, renewals, re-designation, replacements and extensions thereof). A copy of the
Account Pledge Agreement is attached hereto.

Please note that we have waived all rights of confidentiality (Bankgeheimnis) in relation to all
accounts held with you for the benefit of the Secured Parties. We hereby instruct you to provide
the Collateral Agent with all information requested by it concerning the Accounts.

Until you receive notice to the contrary from the Collateral Agent, we may continue to operate the
Account(s) and in particular may dispose of the amounts credited to the Account(s). Upon receipt of
the aforesaid notice to the contrary, you as Account Bank, shall not permit any dispositions by us
of amounts credited to the Account(s).

Please acknowledge receipt of this notice and your agreement to the terms hereof by signing the
enclosed copy and returning the same to UBS AG, Stamford Branch, 677

Term Loan: Account Pledge Agreement

 

 

Washington Boulevard, Stamford, Connecticut 06901, Fax: +1 203-719-3180, to the attention of
Lauren Clark, in its capacity as Collateral Agent with a copy to ourselves.

Yours faithfully,

For and on behalf of 

Novelis Deutschland GmbH

Term Loan: Account Pledge Agreement

 

 

SCHEDULE 4

FORM
OF ACKNOWLEDGEMENT

			
	From:      	 	Commerzbank AG

(the Account Bank)

			
	To:      	 	UBS AG, Stamford Branch

as Collateral Agent

677 Washington Boulevard,

Stamford, Connecticut 06901, USA 

Fax: +1 203-719-3180 

Attention: Lauren Clark

			
	Copy to:	 	Novelis Deutschland GmbH

Hannoversche Straße 1

37075 Göttingen

Germany

Date: ( ....... )

Acknowledgement of Receipt of Notification of Pledge according to Account Pledge Agreement
dated (...) – Bank Account No. (...)

Dear Sirs,

We acknowledge receipt of the above notice and confirm that we have neither received any previous
notice of pledge relating to the Account nor are we aware of any third party rights in relation to
the Account, except of the pledges granted under the Pledge Agreement dated [Citibank / ABL Loan]
which rank in priority before the pledges over the Account granted to the Security Agent by the
Pledgor. We have not assessed the validity of the pledge.

We hereby agree not to make any set-off or deduction from the Account or invoke any rights of
retention in relation to the Account during the existence of the pledge, other than in relation to
charges payable in connection with the maintenance of the Account or other bank charges or fees
payable in the ordinary course of business or in relation to amounts arising from the return of
direct debits or cheques credited to the above Account.

Term
Loan: Account Pledge Agreement

 

 

We agree that the pledge in our favour over the Account granted pursuant to our General Business
Conditions shall rank behind all the pledges over the Account granted to the Security Agent by the
Pledgor pursuant to the Account Pledge Agreement dated (...) of which we have been notified by the
Pledgor.

We take note of the fact that until notice to the contrary from the Security Agent to be served to
us as Account Bank, the Pledgor may continue to operate the Account and in particular may dispose
over the amounts standing to the credit of the Account.

Please send such aforesaid notice directly
to

Commerzbank AG

GKE Ost

Potsdamer Str. 125

10783 Berlin

Fax:+ 49 30 / 2653-2720

                                                                                     

(duly authorised signatory of the Account Bank)

Term
Loan: Account Pledge Agreement

 

 

Signatories

Original Pledgee 1 and Collateral Agent

signing for himself and signing for and on behalf of the institutions listed in Schedule 1 on
the basis of the power of attorney granted in connection with the Credit Agreement

UBS AG, STAMFORD BRANCH

	 	 	 
	/s/ Mary E. Evans
 

	Name:

Title:	
 Mary
E. Evans

Associate Director 
 Banking Products 
 Services, US	
	 
	 	 
	/s/ Richard L. Tavrow
 

	Name:

Title:
	
 Richard L. Tavrow 
 Director 

Banking Products 
 Services, US	

Term
Loan: Account Pledge Agreement

 

 

Signatories

Original Pledgee 2

ABN AMRO INCORPORATED

	 	 	 
	/s/
David Wood
 

Name: David Wood

	 	 
	Title:   Managing Director
	 	 

Original Pledgee 3

UBS SECURITIES LLC

	 	 	 
	 
	 

Name:

	 	 
	Title
	 	 

Term
Loan: Account Pledge Agreement

 

 

Signatories

Original Pledgee 2

ABN AMRO INCORPORATED

	 	 	 
	 
	 

Name:

	 	 
	Title:
	 	 

Original
Pledgee 3

UBS SECURITIES LLC

	 	 	 	 	 	 	 
	/s/ Mary E. Evans

	 	 	 	/s/ Irja R. Otsa
	 	 	 	 	 
	Name:

Title

	 	Mary E. Evans

Associate Director
 Banking Products

Services, US
	 	 	 	Irja R. Otsa
 Associate
Director
 Banking Products

Services, US

Term
Loan: Account Pledge Agreement

 

 

Signatories

Pledgor

NOVELIS DEUTSCHLAND GMBH

	 	 	 
	/s/ Gottfried Weindl
 

Name: Gottfried Weindl

	 	 
	Title:
Managing Director (Geschäftsführer)
	 	 

Term
Loan: Account Pledge Agreement

 

 

EXHIBIT M-6

Form of

IRISH SECURITY AGREEMENT

[See Tab # H.1-3.]

EXHIBIT M-6-1

 

 

EXECUTION COPY

Dated 6 July 2007

Between

NOVELIS ALUMINIUM HOLDING COMPANY

as Original Chargor

and

UBS AG, STAMFORD BRANCH

as Collateral Agent

 

GUARANTEE AND SECURITY AGREEMENT

 

This Deed is entered into subject to

the terms of a Credit Agreement dated on or about the date hereof an Intercreditor

Agreement dated on or about the date hereof

McCann FitzGerald

Solicitors

Riverside One

Sir John Rogerson’s Quay

Dublin 2

 

 

CONTENTS

	 	 	 
	Clause	 	Page
	1. INTERPRETATION
	 	4
	2. GUARANTEE
	 	9
	3. CREATION OF SECURITY
	 	11
	4. REPRESENTATIONS - GENERAL
	 	16
	5. RESTRICTIONS ON DEALINGS
	 	17
	6. LAND
	 	17
	7. INVESTMENTS
	 	21
	8. INTELLECTUAL PROPERTY
	 	24
	9. ACCOUNTS
	 	25
	10. RELEVANT CONTRACTS
	 	27
	11. PLANT AND MACHINERY
	 	28
	12. INSURANCE POLICIES
	 	29
	13. WHEN SECURITY BECOMES ENFORCEABLE
	 	29
	14. ENFORCEMENT OF SECURITY
	 	29
	15. RECEIVER
	 	31
	16. POWERS OF RECEIVER
	 	32
	17. APPLICATION OF PROCEEDS
	 	34
	18. TAXES, EXPENSES AND INDEMNITY
	 	34
	19. DELEGATION
	 	34
	20. FURTHER ASSURANCES
	 	34
	21. POWER OF ATTORNEY
	 	35
	22. PRESERVATION OF SECURITY
	 	35
	23. MISCELLANEOUS
	 	37
	24. LOAN PARTIES
	 	38
	25. RELEASE
	 	39
	26. COUNTERPARTS
	 	39
	27. NOTICES
	 	39

 

 

	 	 	 
	Clause	 	Page
	28. THE COLLATERAL AGENT AS TRUSTEE
	 	40
	29. GOVERNING LAW
	 	40
	30. ENFORCEMENT
	 	41

 

 

THIS DEED is dated 6 July 2007

BETWEEN:

	(1)	 	NOVELIS ALUMINIUM HOLDING COMPANY a company registered in Ireland with company number 316911
(hereinafter referred to as the “Original Chargor”); and
	 
	(2)	 	UBS AG, STAMFORD BRANCH as agent and trustee for the Secured Parties referred to below (the
Collateral Agent).

BACKGROUND:

	(A)	 	Each Chargor enters into this Deed in connection with the Credit Agreement (as defined
below).
	 
	(B)	 	It is intended that this document takes effect as a deed notwithstanding the fact that a
party may only execute this document under hand,

IT IS AGREED as follows:

	1.	 	INTERPRETATION
	 
	1.1	 	Definitions
	 
	1.2	 	In this Deed:
	 
	 	 	Account Bank means a bank with whom a Security Account is maintained.
	 
	 	 	Acquisition Document means in relation to any Chargor, any agreement under which it
acquires or disposes of a business or part of a business (either by share or asset sale)
and under which the aggregate consideration payable at anytime is in excess of €250,000.
	 
	 	 	Act means the Conveyancing and Law of Property Act, 1881 as amended.
	 
	 	 	Additional Chargor means a member of the Group which becomes a Chargor by executing a Deed
of Accession.
	 
	 	 	Cash Management Document means in relation to any Chargor, any agreement between two or
more members of the Group to which it is a party that provides for any cash pooling,
set-off or netting arrangement, including the European Cash Pooling Arrangements.
	 
	 	 	Chargor means the Original Chargor and any Additional Chargor.
	 
	 	 	Charged Shares means all shares in any member of the Group Incorporated in Ireland from
time to time issued to a Chargor or held by any nominee on its behalf.
	 
	 	 	Charged Company means each member of the Group from time to time whose shares are subject
to the Security under this Deed.
	 
	 	 	Credit Agreement means the Credit Agreement dated on or about the date hereof between,
amongst others, Novelis Inc., as Canadian Borrower, Novelis Corporation as U.S. Borrower,
AV ALUMINUM INC., as Holdings, and the Other Guarantors party thereto, the Lenders party
thereto and UBS AG, Stamford Branch as Administrative Agent and Collateral Agent.
	 
	 	 	Deed of Accession means a deed substantially in the form of Schedule 5 (Form of Deed of
Accession).

 

 

	 	 	Discharge Date means the date on which the Administrative Agent is satisfied that all of the Term
Loan Obligations (as defined in the Intercreditor Agreement) have been irrevocably paid and
discharged.
	 
	 	 	Examiner means an examiner appointed under Section 2 of the Companies (Amendment) Act, 1990.
	 
	 	 	Fixtures means all fixtures and fittings (including trade fixtures and fittings) and fixed plant
and machinery included in a Chargor’s Mortgaged Property.
	 
	 	 	Group means the Original Chargor and its Affiliates.
	 
	 	 	Intercompany Document means in relation to any Chargor, any agreement with any other member of the
Group under which the aggregate consideration payable at anytime is in excess of €250,000.
	 
	 	 	Investments means:

	 	(i)	 	the Charged Shares; and
	 
	 	(ii)	 	all other shares, stocks, debentures, bonds, warrants, coupons and other securities
and investments,

	 	 	which a Chargor purports to mortgage or charge under this Deed.
	 
	 	 	Mortgaged Property means all freehold and leasehold property which a Chargor purports to mortgage
or charge under this Deed.
	 
	 	 	Original Property means any freehold or leasehold property specified in Part 1 of Schedule 1
(Security Assets).
	 
	 	 	Party means a party to this Deed.
	 
	 	 	Plant and Machinery means any plant, machinery, computers, office equipment or vehicles which a
Chargor purports to mortgage or charge under this Deed.
	 
	 	 	Premises means all buildings and erections included in a Chargor’s Mortgaged Property.
	 
	 	 	Primary Contract means in relation to any Chargor:

	 	(i)	 	any agreement specified in Part 4A of Schedule 1 (Security Assets) opposite its
name or in Part 4A of the schedule to any Deed of Accession by which it became party to
this Deed;
	 
	 	(ii)	 	any other agreement to which that Chargor is a party and which that Chargor and the
Collateral Agent have designated a Primary Contract.;
	 
	 	(iii)	 	any Acquisition Document;
	 
	 	(iv)	 	any Cash Management Document;
	 
	 	(v)	 	any Hedging Agreement;
	 
	 	(vi)	 	any Intercompany Document;
	 
	 	(vii)	 	any letter of credit issued in its favour under which the aggregate consideration
payable at any time is in excess of €100,000; or

 

 

	 	(viii)	 	any bill of exchange or other negotiable instrument held by it.

	 	 	Real Property means all that property referred to in Clauses 3.2(a) to 3.2(c) inclusive.
	 
	 	 	Receiver means a receiver and manager or a receiver, in each case, appointed under this Deed.
	 
	 	 	Related Company means a company which is related within the meaning of Section 4(5) of the
Companies (Amendment) Act, 1990.
	 
	 	 	Related Rights means in relation to any Investment:

	 	(i)	 	the proceeds of sale of the whole or any part of that asset or any monies and
proceeds paid or payable in respect of that asset;
	 
	 	(ii)	 	all rights under any licence, agreement for sale, option or lease in respect of that asset;
and
	 
	 	(iii)	 	all rights, benefits, claims, contracts, warranties, remedies, security Indemnities or
covenants for title in respect of that asset.

	 	 	Report on Title means any report or certificate on title on the Mortgaged Property provided to the
Collateral Agent, together with confirmation from the provider of that Report that it can be
relied upon by the Secured Parties.
	 
	 	 	Revolving Credit Collateral Agent has the meaning given to that term in the Intercreditor
Agreement.
	 
	 	 	Revolving Credit Collateral Release Date means in relation to any Chargor the date on which the
Security Interests granted by that Chargor over the Revolving Credit Priority Collateral to the
Revolving Credit Collateral Agent pursuant to the Revolving Credit Security Agreement have been
irrevocably and unconditionally released, revoked, re-transferred or otherwise become
unenforceable.
	 
	 	 	Revolving Credit Security Agreement means the Guarantee and Security Agreement dated on about the
date hereof between the Chargors and the Revolving Credit Collateral Agent.
	 
	 	 	Secondary Contract means in relation to any Chargor:

	 	(a)	 	any agreement specified in Part 4B of Schedule 1 (Security Assets) opposite its name or in
Part 4B of the schedule to any Deed of Accession by which it became party to this Deed;
	 
	 	(b)	 	any other agreement to which that Chargor is a party and which that Chargor and the
Collateral Agent have designated a Secondary Contract; and
	 
	 	(c)	 	any other agreement (other than a Primary Contract) entered into after the date of this Deed
under which the aggregate consideration payable at anytime is in excess of €250,000.

	 	 	Security means any Security Interest created, evidenced or conferred by or under this Deed or any
Deed of Accession.
	 
	 	 	Security Account means in relation to any Chargor:

	 	(a)	 	any account specified in Part 6 of Schedule 1 (Security Assets) opposite its name or in
Part 6 of the schedule to any Deed of Accession by which it became party to this Deed; and

 

 

	 	(b)	 	any other account which it purports to charge under this Deed.

	 	 	Security Assets means any and all assets of each Chargor that are the subject of this
Security.
	 
	 	 	Security Contracts means in relation to any Chargor, its Primary Contracts and its
Secondary Contracts.
	 
	 	 	Security Interest means any mortgage, pledge, lien, charge (fixed or floating),
assignment, hypothecation, set-off or trust arrangement for the purpose of creating
security, reservation of title or security interest or any other agreement or arrangement
having a similar effect.
	 
	 	 	Security Period means the period beginning on the date of this Deed and ending on the
Discharge Date.
	 
	 	 	Security Trust Deed means the Security Trust Deed dated on or about the date of this Deed
and entered into between, amongst others, the Collateral Agent, the Administrative Agent
and the Chargors.

	1.3	 	Construction

	 	(a)	 	Capitalised terms defined in the Credit Agreement or the Intercreditor
Agreement (as defined in the Credit Agreement) have, unless expressly defined in this
Deed, the same meaning in this Deed.
	 
	 	(b)	 	an “agreement” includes any legally binding arrangement, agreement,
contract, deed or instrument (in each case whether oral or written);
	 
	 	(c)	 	an “amendment” includes any amendment, supplement, variation, waiver,
novation, modification, replacement or restatement (however fundamental) and “amend”
and “amended” shall be construed accordingly;
	 
	 	(d)	 	“assets” includes properties, assets, businesses, undertakings, revenues and
rights of every kind (including uncalled share capital), present or future, actual or
contingent, and any interest in any of the above;
	 
	 	(e)	 	a “consent” includes an authorisation, permit, approval, consent, exemption,
licence, order, filing, registration, recording, notarisation, permission or waiver;
	 
	 	(f)	 	any reference to an Event of Default being “continuing” means that such
Event of Default has occurred or arisen and has not been expressly waived in writing
by the Collateral Agent or Administrative Agent (as appropriate);
	 
	 	(g)	 	a “disposal” includes any sale, transfer, grant, lease, licence or other
disposal, whether voluntary or involuntary and “dispose” will be construed
accordingly;
	 
	 	(h)	 	“including” means including without limitation and “includes” and “included”
shall be construed accordingly;
	 
	 	(i)	 	“indebtedness” includes any obligation (whether incurred as principal,
guarantor or surety and whether present or future, actual or contingent) for the
payment or repayment of money;
	 
	 	(j)	 	“losses” includes losses, actions, damages, payments, claims, proceedings,
costs, demands, expenses (including legal and other fees) and liabilities of any
kind and “loss” shall be construed accordingly;

 

 

	 	(k)	 	a “person” includes any individual, trust, firm, fund, company, corporation,
partnership, joint venture, government, state or agency of a state or any undertaking or
other association (whether or not having separate legal personality) or any two or more of
the foregoing; and
	 
	 	(l)	 	a “regulation” Includes any regulation, rule, official directive, request or
guideline (whether or not having the force of law but if not having the force of law
compliance with which is customary) of any governmental or supranational body, agency,
department or regulatory, self-regulatory or other authority or organisation.
	 
	 	(m)	 	In this Deed, unless a contrary intention appears:

	 	(i)	 	a reference to any person includes a reference to that person’s
permitted successors, assignees and transferees and, in the case of the
Collateral Agent and the Administrative Agent, any person for the time being
appointed as Collateral Agent or Administrative Agent (as appropriate) in
accordance with the Loan Documents, and in the case of the Collateral Agent and
any Receiver, any Delegate of the Collateral Agent or Receiver (as appropriate);
	 
	 	(ii)	 	references to Clauses, Subclauses and Schedules are references to,
respectively, clauses and subclauses of and schedules to this Deed and references to
this Deed include its schedules;
	 
	 	(iii)	 	a reference to (or to any specified provision of) any agreement is to
that agreement (or that provision) as amended from time to time;
	 
	 	(iv)	 	a reference to a statute, statutory instrument or provision of law is to
that statute, statutory instrument or provision of law, as it may be applied,
amended or re-enacted from time to time;
	 
	 	(v)	 	the index to and the headings in this Deed are for convenience only and
are to be ignored in construing this Deed; and
	 
	 	(vi)	 	words imparting the singular include the plural and vice versa.

	 	(n)	 	The term clearance system means a person whose business is or includes the provision of
clearance services or security accounts or any nominee or depository for that person.
	 
	 	(o)	 	Any covenant of a Chargor under this Deed (other than a payment obligation) remains in force
during the Security Period and is given for the benefit of each Secured Party.
	 
	 	(p)	 	Without prejudice to any other provision of this Deed, the Collateral Agent shall be
entitled to retain this Deed and not to release any of the Security Assets if the Collateral
Agent, acting reasonably, considers that an amount paid to a Secured Party under a Loan
Document is capable of being avoided or otherwise set aside on the liquidation or examination
of the payer or otherwise, and any amount so paid will not be considered to have been
irrevocably paid for the purposes of this Deed.
	 
	 	(q)	 	Unless the context otherwise requires, a reference to a Security Asset or any type or
description of a Security Asset includes:

	 	(i)	 	any part of that Security Asset; and
	 
	 	(ii)	 	any present and future assets of that type.

 

 

	1.4	 	Intercreditor Agreement Governs
	 
	 	 	NOTWITHSTANDING ANYTHING HEREIN TO THE CONTRARY, THE SECURITY INTERESTS GRANTED TO THE
COLLATERAL AGENT, FOR THE BENEFIT OF THE SECURED PARTIES, PURSUANT TO THIS AGREEMENT AND
THE EXERCISE OF ANY RIGHT OR REMEDY BY THE COLLATERAL AGENT OR ANY RECEIVER OR OTHER
SECURED PARTIES HEREUNDER ARE SUBJECT TO THE PROVISIONS OF THE INTERCREDITOR AGREEMENT. IN
THE EVENT OF ANY CONFLICT OR INCONSISTENCY BETWEEN THE PROVISIONS OF THE INTERCREDITOR
AGREEMENT AND THIS AGREEMENT, THE PROVISIONS OF THE INTERCREDITOR AGREEMENT SHALL GOVERN
AND CONTROL.
	 
	2.	 	GUARANTEE
	 
	2.1	 	Guarantee
	 
	 	 	Each Chargor irrevocably and unconditionally jointly and severally:

	 	(a)	 	guarantees as principal obligor to the Collateral Agent due and punctual
performance by each Loan Party of all of the Secured Obligations now or in the future
due, owing or incurred by it;
	 
	 	(b)	 	undertakes with the Collateral Agent that whenever another Loan Party does
not pay or discharge any Secured Obligation now or in the future due, owing or
incurred by that Loan Party, it shall immediately on the Collateral Agent’s written
demand pay or discharge such Secured Obligation as if it was the principal obligor;
and
	 
	 	(c)	 	indemnifies the Collateral Agent immediately on written demand against any
cost, loss or liability suffered by the Collateral Agent or other Secured Party if
any obligation guaranteed by it or becomes unenforceable, invalid or illegal. The
amount of the cost, loss or liability shall be equal to the amount which the
Collateral Agent or other Secured Party would otherwise have been entitled to
recover.

	2.2	 	Continuing Guarantee
	 
	 	 	This guarantee is a continuing guarantee and will extend to the ultimate balance of sums
payable by any Loan Party under the Loan Documents, regardless of any intermediate payment
or discharge in whole or in part.
	 
	2.3	 	Reinstatement
	 
	 	 	If any payment by a Loan Party or any discharge given by the Collateral Agent or a Secured
Party (whether in respect of the obligations of any Loan Party or any security for those
obligations or otherwise) is avoided or reduced as a result of insolvency or any similar
event:

	 	(a)	 	the liability of each Loan Party shall continue as if the payment,
discharge, avoidance or reduction had not occurred; and
	 
	 	(b)	 	the Collateral Agent and each other Secured Party shall be entitled to
recover the value or amount of that security or payment from each Loan Party, as if
the payment, discharge, avoidance or reduction had not occurred.

	2.4	 	Waiver of defences
	 
	 	 	The obligations of each Chargor under this Clause 2 (Guarantee) will not be affected by
an act, omission, matter or thing which, but for this Clause 2 (Guarantee), would reduce,

 

 

	 	 	release or prejudice any of its obligations under this Clause 2 (Guarantee) (without
limitation and whether or not known to it or any Secured Party) including:

	 	(i)	 	any time, waiver or consent granted to, or composition with, any Loan Party or
other person;
	 
	 	(ii)	 	the release of any other Loan Party or any other person under the terms of
any composition or arrangement with any creditor of any member of the Group;
	 
	 	(iii)	 	the taking, variation, compromise, exchange, renewal or release of, or
refusal or neglect to perfect, take up or enforce, any rights against, or security
over assets of, any Loan Party or other person or any non-presentation or
non-observance of any formality or other requirement in respect of any instrument or
any failure to realise the full value of any security;
	 
	 	(iv)	 	any incapacity or lack of power, authority or legal personality of or
dissolution or change in the members or status of a Loan Party or any other person;
	 
	 	(v)	 	any amendment, novation, supplement, extension (whether of maturity or
otherwise) or restatement (in each case, however fundamental and of whatsoever
nature) or replacement of a Loan Document or any other document or security;
	 
	 	(vi)	 	any unenforceability, illegality or invalidity of any obligation of any
person under any Loan Document or any other document or security; or
	 
	 	(vii)	 	any insolvency or similar proceedings.

	2.5	 	Demands

	 	(a)	 	The making of one demand under Clause 2.1 (Guarantee) shall not preclude the
Collateral Agent from making any further demands.
	 
	 	(b)	 	Any delay of the Collateral Agent in making a demand under Clause 2.1
(Guarantee) shall not be treated as a waiver of its rights to make such demand.

	2.6	 	Chargor Intent
	 
	 	 	Without prejudice to the generality of Clause 2.4 (Waiver of Defences), each Chargor
expressly confirms that it intends that this guarantee shall extend from time to time to
any (however fundamental) variation, increase, extension or addition of or to any of the
Loan Documents and/or any facility or amount made available under any of the Loan
Documents for the purposes of or in connection with any of the following: business
acquisitions of any nature; increasing working capital; enabling investor distributions to
be made; carrying out restructurings; refinancing existing facilities; refinancing any
other indebtedness; making facilities available to new borrowers; any other variation or
extension of the purposes for which any such facility or amount might be made available
from time to time; and any fees, costs and/or expenses associated with any of the
foregoing.
	 
	2.7	 	Immediate recourse
	 
	 	 	Each Chargor waives any right it may have of first requiring the Collateral Agent or any
Secured Party (or any trustee or agent on its behalf) to proceed against or enforce any
other rights or security or claim payment from any person before claiming from that
Chargor under this Clause 2 (Guarantee). This waiver applies irrespective of any law or
any provision of a Loan Document to the contrary.

 

 

	2.8	 	Deferral of Chargors’ rights

	 	(a)	 	Until all amounts which may be or become payable by the Loan Parties under or
in connection with the Loan Documents have been irrevocably paid in full and
unless the Collateral Agent otherwise directs (in which case It shall take such
action as it is directed), no Chargor will exercise any rights which it may have
by
reason of performance by it of its obligations under the Loan Documents:

	 	(i)	 	to be indemnified by a Loan Party;
	 
	 	(ii)	 	to claim any contribution from any other Chargor of any
Loan Party’s obligations under the Loan Documents; and/or
	 
	 	(iii)	 	to take the benefit (in whole or in part and whether by
way of subrogation or otherwise) of any rights of any Secured Party under
the Loan Documents or of any other guarantee or security taken pursuant to,
or in connection with, the Loan Documents by any Secured Party.

	 	(b)	 	if a Chargor receives any benefit, payment or distribution in relation to
such
rights it shall hold that benefit, payment or distribution to the extent necessary to
enable all amounts which may be or become payable to the Secured Parties by
the Loan Parties under or in connection with the Loan Documents to be repaid in
full on trust for the Secured Parties and shall promptly pay or transfer the same
to the Collateral Agent or as the Collateral Agent may direct.

	2.9	 	Additional security
	 
	 	 	This guarantee is in addition to and is not in any way prejudiced by any other guarantee
or security now or subsequently held by any Secured Party.
	 
	2.10	 	Credit Agreement
	 
	 	 	The provisions of Sections 2.06(j), 2.12 (with respect to Taxes), 2.15, 2.20, 2.22, 2.23
and 7.10 of the Credit Agreement are hereby incorporated, mutatis mutandi, and shall apply
to this Agreement, the Chargors, the Lenders, the Collateral Agent and the Administrative
Agent as if set forth herein.
	 
	3.	 	CREATION OF SECURITY
	 
	3.1	 	General

	 	(a)	 	All this Security:

	 	(i)	 	is created in favour of the Collateral Agent as trustee for the Secured Parties;
	 
	 	(ii)	 	is security for the payment, discharge and performance of
all the Secured Obligations; and
	 
	 	(iii)	 	is made by each Chargor as beneficial owner.

	 	(b)	 	If a Chargor assigns or charges an agreement under this Deed and the
assignment or charge breaches a term of that agreement because a third party’s
consent has not been obtained:

	 	(i)	 	the Chargor must notify the Collateral Agent immediately;
	 
	 	(ii)	 	unless the Collateral Agent otherwise requires, the Chargor
must, and each other Chargor must ensure that the Chargor will, use all

 

 

	 	 	 	reasonable endeavours to obtain the consent as soon as practicable; and
	 
	 	(iii)	 	the Chargor must promptly supply to the Collateral
Agent a copy of the consent obtained by it.

	 	(c)	 	Each Chargor hereby acknowledges that all assets, right, interests and
benefits which are now or in the future granted to the Collateral Agent pursuant to
this Clause 3 or otherwise mortgaged, charged, assigned or otherwise granted to it
under this Deed (or any other document in connection herewith) and all other rights,
powers and discretions granted to or conferred upon the Collateral Agent under this
Deed or the Loan Documents (or any other document in connection therewith) shall be
held by the Collateral Agent on trust for the Secured Parties from time to time in
accordance with the provisions of the Security Trust Deed.
	 
	 	(d)	 	The fact that no or incomplete details of any Security Asset are inserted in
Schedule 1 (Security Assets) or in the schedule to any Deed of Accession (if any) by
which any Chargor became party to this Deed does not affect the validity or
enforceability of this Security.

	3.2	 	Land
	 
	 	 	Each Chargor as beneficial owner, as continuing security for the payment, performance and
discharge of the Secured Obligations, hereby:-

	 	(a)	 	grants, conveys, transfers and demises to the Collateral Agent as trustee
for the Secured Parties ALL THAT AND THOSE the freehold and leasehold property of
such Chargor both present and future (including specifically, but not limited to, the
lands, hereditaments and premises specified in Part 1 A of Schedule 1 (Security
Assets) and all buildings and (to the extent the same are not otherwise subject to a
fixed charge hereunder) all fixtures (including trade fixtures) from time to time on
every such property and all fixed plant and machinery of such Chargor both present
and future therein or thereon to hold the same as to so much thereof as is of
freehold tenure unto the Collateral Agent as trustee for the Secured Parties in fee
simple and as to so much thereof as is of leasehold tenure unto the Collateral Agent
as trustee for the Secured Parties for the residue of the respective terms of years
for which such Chargor now or, as applicable at the time of acquisition, then holds
the same less the last three days of each such term, subject to the proviso for
redemption herein contained PROVIDED that each Chargor hereby declares that it shall
henceforth stand possessed of such of the said property as is of leasehold tenure for
the last day or respective last days of the term or terms or years for which the same
is held by it, and for any further or other interest which it now has or may
hereafter acquire or become entitled to in the same or any part thereof by virtue of
any Act or Acts of the Oireachtas or otherwise howsoever, in trust for the Collateral
Agent as trustee for the Secured Parties and to be conveyed assigned or otherwise
dealt with whether to the Collateral Agent as trustee for the Secured Parties or its
nominee or otherwise as the Collateral Agent shall direct but subject to the same
equity of redemption as may for the time being be subsisting in the said property,
and PROVIDED FURTHER that each Chargor doth hereby irrevocably appoint the secretary
(and any authorised signatory) for the time being of the Collateral Agent to be its
attorney, in its name and on its behalf, and as its act and deed to sign seal and
deliver and otherwise perfect every or any Deed of Conveyance of the leasehold
reversion which may be desired by the Collateral Agent, in order to vest in the
Collateral Agent as trustee for the Secured Parties or in any person or persons in
trust as agent for the Collateral Agent, subject as aforesaid, or in any purchaser of
the said property or any part thereof, the said leasehold reversion and any further
or other interest which such Chargor now has or may hereafter acquire or become
entitled to in the said leasehold premises or any part thereof by virtue of any Act
or Acts of the Oireachtas or otherwise howsoever;

 

 

	 	(b)	 	as registered owner or, as the case may be, person entitled to be registered as
owner, charges to the Collateral Agent as trustee for the Secured Parties ALL THAT
AND THOSE the freehold and leasehold lands, hereditaments, premises and property of
such Chargor registered under the Registration of Title Act, 1964 both present and
future (including, specifically, but not limited to, the lands, hereditaments and
premises specified in Part 1 B of Schedule 1) together with all buildings and (to
the extent the same are not otherwise subject to a fixed charge hereunder) all
fixtures (including trade fixtures) from time to time on every such property and
all fixed plant and machinery both present and future therein with the payment
performance and discharge of the Secured Obligations;
	 
	 	(c)	 	charges to the Collateral Agent as trustee for the Secured Parties all its
other estate, right, title or interests in any land or buildings now belonging to
such Chargor (including, specifically, but not limited to, the lands, hereditaments
and premises specified in Schedule I) (whether or not the legal estate is vested in
such Chargor or registered in the name of such Chargor), and all future estate,
right, title or interests of such Chargor in such lands, hereditaments and premises
and in any other freehold or leasehold property (whether or not registered) vested In
or held by or on behalf of such Chargor from time to time and/or the proceeds of sale
thereof together in all cases (to the extent the same are not otherwise subject to a
fixed charge hereunder) all fixtures (including trade fixtures) and all fixed plant
and machinery from time to time therein with the payment performance and discharge of
the Secured Obligations; and
	 
	 	(d)	 	charges to the Collateral Agent as trustee for the Secured Parties the
benefit of all present and future licences, covenants, permissions, consents and
authorisations (statutory or otherwise) held by such Chargor in connection with the
use of any of the Real Property and the right to recover and receive all compensation
or other monies which may at any time become payable to it in respect thereof.

	3.3	 	Investments

	 	(a)	 	Each Chargor as beneficial owner as continuing security for the payment,
performance and discharge of the Secured Obligations hereby charges:

	 	(i)	 	by way of a first legal mortgage the Charged Shares; this includes any
Charged Shares specified in Part 2 of Schedule 1 (Security Assets)
opposite its name or in Part 2 of the schedule to any Deed of Accession
by which it became party to this Deed; and
	 
	 	(ii)	 	(to the extent that they are not the subject of a mortgage
under sub-paragraph (i) above) by way of a first fixed charge its interest
in all shares, stocks, debentures, bonds, warrants, coupons or other
securities and investments (including all Cash Equivalents) owned by it or
held by any nominee on its behalf.

	 	(b)	 	A reference in this Deed to any share, stock, debenture, bond, warrant,
coupon
or other security or investment includes:

	 	(i)	 	any dividend, interest or other distribution paid or payable;
	 
	 	(ii)	 	any right, money or property accruing, derived, incidental
or offered at any time by way of redemption, substitution, exchange, bonus or
preference, under option rights or otherwise;
	 
	 	(iii)	 	any right against any clearance system;
	 
	 	(iv)	 	any Related Rights; and

 

 

	 	(v)	 	any right under any custodian or other agreement,

	 	 	in relation to that share, stock, debenture, bond, warrant, coupon or other security or
investment.

	3.4	 	Plant and machinery
	 
	 	 	Each Chargor as beneficial owner as continuing security for the payment, performance and
discharge of the Secured Obligations hereby charges by way of first fixed charge all
plant, machinery, computers, office equipment or vehicles or interest
specified in Part 3
of Schedule 1 (Security Assets) opposite its name or in Part 3 of the schedule to any Deed
of Accession by which it became party to this Deed and any other plant, machinery,
computers, office equipment or vehicles (or interest therein) owned by it.
	 
	3.5	 	Credit balances
	 
	 	 	Each Chargor as beneficial owner as continuing security for the payment, performance and
discharge of the Secured Obligations hereby charges by way of a first fixed charge all of
its rights in respect of each amount standing to the credit of each account with any
person, including its Security Accounts and the debt represented by that account.
	 
	3.6	 	Book debts etc.
	 
	 	 	Each Chargor as beneficial owner as continuing security for the payment, performance and
discharge of the Secured Obligations hereby charges by way of a first fixed charge:

	 	(a)	 	all of its book and other debts;
	 
	 	(b)	 	all other moneys due and owing to it; and
	 
	 	(c)	 	the benefit of all rights, securities and guarantees of any nature enjoyed
or held by it in relation to any item under paragraph (a) or (b) above.

	3.7	 	Insurance Policies

	 	(a)	 	Each Chargor as beneficial owner as continuing security for the payment,
performance and discharge of the Secured Obligations hereby as beneficial owner as
continuing security for the payment, performance and discharge of the Secured
Obligations hereby assigns absolutely, subject to a proviso for
re-assignment on
redemption, all amounts payable to it under or in connection with each of its
Insurance Policies and all of its rights in connection with those amounts.
	 
	 	(b)	 	To the extent that they are not effectively assigned under paragraph (a)
above, each Chargor charges by way of first fixed charge all amounts and rights
described in paragraph (a) above.
	 
	 	(c)	 	A reference in this Subclause to any amounts excludes all amounts received
or receivable under or in connection with any third party liability Insurance and
required to settle a liability of a Loan Party to a third party.

	3.8	 	Other contracts

	 	(a)	 	Each Chargor as beneficial owner as continuing security for the payment,
performance and discharge of the Secured Obligations hereby assigns absolutely,
subject to a proviso for re-assignment on redemption, all of its rights in respect
of its Primary Contracts.

 

 

	 	(b)	 	Without prejudice to the obligations of the Chargor under Clause 3.1(b), to
the extent that any such right described in paragraph (a) above is not assignable
or capable of assignment, the assignment of that right purported to be effected by
paragraph (a) shall operate as an assignment of any damages, compensation,
remuneration, profit, rent or income which that Chargor may derive from that right
or be awarded or entitled to in respect of that right.
	 
	 	(c)	 	To the extent that they do not fail within any other Subclause of this Clause
and are not effectively assigned under paragraph (a) or (b) above, each Chargor
charges by way of first fixed charge all of its rights under each agreement and
document to which it is a party including, without limitation, Its Secondary
Contracts.

	3.9	 	Intellectual property
	 
	 	 	Each Chargor as beneficial owner as continuing security for the payment, performance and
discharge of the Secured Obligations hereby charges by way of a first fixed charge all of
its rights in respect of any Intellectual Property; this includes any specified in Part 5
of Schedule 1 (Security Assets) opposite its name or In Part 5 of the schedule to any Deed
of Accession by which it became party to this Deed.
	 
	3.10	 	Miscellaneous
	 
	 	 	Each Chargor as beneficial owner as continuing security for the payment, performance and
discharge of the Secured Obligations hereby charges by way of a first fixed charge:

	 	(a)	 	any beneficial interest, claim or entitlement it has to any assets of any
pension fund;
	 
	 	(b)	 	its goodwill;
	 
	 	(c)	 	the benefit of any authorisation (statutory or otherwise) held in connection
with its business or the use of any Security Asset;
	 
	 	(d)	 	the right to recover and receive compensation which may be payable to it in
respect of any authorisation referred to in paragraph (c) above; and
	 
	 	(e)	 	its uncalled capital.

	3.11	 	Floating charge

	 	(a)	 	Each Chargor, as beneficial, owner as continuing security for the payment,
performance and discharge of the Secured Obligations hereby charges by way of a first
floating charge all of its assets whatsoever and wheresoever not otherwise
effectively mortgaged, charged or assigned under this Deed.
	 
	 	(b)	 	Except as provided below, the Collateral Agent may by notice to a Chargor
convert the floating charge created by that Chargor under this Deed into a fixed
charge as regards any of that Chargor’s assets specified in that notice, if:

	 	(i)	 	an Event of Default is continuing;
	 
	 	(ii)	 	the Collateral Agent considers those assets to be in
danger of being seized or sold under any form of distress, attachment,
execution or other legal process or to be otherwise in jeopardy; or
	 
	 	(iii)	 	that Chargor falls to comply, or takes or threatens to
take any action which, in the reasonable opinion of the Collateral Agent, is
likely to result

 

 

	 	 	 	in it failing to comply with its obligations under paragraph (a) of
Clause 5 (Restrictions on dealing).

	 	(c)	 	The floating charge created under this Deed will (in addition to the
circumstances in which the same will occur under general law) automatically
convert into a fixed charge over all of each Chargor’s assets:

	 	(i)	 	if an Examiner is appointed or the Collateral Agent receives
notice of an intention to appoint an Examiner;
	 
	 	(ii)	 	on the convening of any meeting of the members of that
Chargor to consider a resolution to wind that Chargor up (or not to wind
that Chargor up); or
	 
	 	(iii)	 	on the presentation of a petition to appoint an Examiner
to that Chargor or where the protection of the court is sought by a Related
Company.

	 	(d)	 	The giving by the Collateral Agent of a notice under paragraph (b) above in
relation to any asset of a Chargor will not be construed as a waiver or
abandonment of the Collateral Agent’s rights to give any other
notice in respect
of any other asset or of any other right of any other Secured Party under this
Deed or any other Loan Document.
	 
	 	 	 	Any charge which has been converted into a fixed charge in accordance with
paragraphs (b) and (c) above may, by notice in writing given at any time by the
Collateral Agent to the relevant Chargor, be reconverted into a floating charge
in relation to the Security Assets specified in such notice.

	4.	 	REPRESENTATIONS - GENERAL
	 
	4.1	 	Nature of security
	 
	 	 	Each Chargor represents and warrants to each Secured Party that;

	 	(a)	 	this Deed creates those Security Interests it purports to create (save that
the legal mortgage created in Clause 3.3(a)(I) will take effect in equity until such
time as the Collateral Agent exercises its discretion under Clause 7.2(b)) and is not
liable to be avoided or otherwise set aside on its liquidation or examination or
otherwise; and
	 
	 	(b)	 	this Deed is its legal, valid and binding obligation and is enforceable
against it in accordance with its terms
	 
	 	(c)	 	no authorisation, approval or other action by, and no notice to or filing
with, any governmental authority or regulatory body is required for either:

	 	(i)	 	the pledge or grant by the Chargor of the Security purported
to be created in favour of the Collateral Agent under this Deed; or
	 
	 	(ii)	 	the exercise by the Collateral Agent of any rights or
remedies in respect of the Security Assets (whether specifically granted or
created under this Deed or created or provided for by applicable law); and

	 	(d)	 	all actions and consents, including all filings, notices, registrations and
recordings necessary for the exercise by the Collateral Agent of the voting or
other rights provided for in this Deed or the exercise of remedies in respect of
the
Security Assets have been made or will be obtained within periods required to
perfect the Security as against any third party.

 

 

	4.2	 	Times for making representations and warranties

	 	(a)	 	The representations and warranties set out in this Deed (including in this
Clause) are made by each Chargor.
	 
	 	(b)	 	Each representation and warranty under this Deed is deemed to be repeated by:

	 	(i)	 	each Chargor which becomes party to this Deed by Deed of Accession,
on the date on which that Chargor becomes a Chargor; and
	 
	 	(ii)	 	each Chargor on each date during the Security Period.

	 	(c)	 	When a representation and warranty is deemed to be repeated, it is deemed to
be made by reference to the circumstances existing at the time of repetition.

	5.	 	RESTRICTIONS ON DEALINGS
	 
	 	 	No Chargor may:

	 	(a)	 	create or permit to subsist any Security Interest on any of its assets; or
	 
	 	(b)	 	either in a single transaction or in a series of transactions and whether
related or not and whether voluntarily or involuntarily sell, lease, transfer, redeem
or otherwise dispose of all or any part of its assets,
	 
	 	unless permitted under the
Credit Agreement.

	6.	 	LAND
	 
	6.1	 	Information for Report on Title
	 
	 	 	Each Chargor represents and warrants to each Secured Party that:

	 	(a)	 	the information supplied by it or on its behalf to the lawyers who prepared
any Report on Title relating to any of its Mortgaged Property for the purpose of that
Report on Title was true in all material respects at the date it was expressed to be
given; and
	 
	 	(b)	 	the information referred to in paragraph (a) above was at the date it was
expressed to be given complete and did not omit any information
which, if disclosed
would make that information untrue or misleading in any material respect.

	6.2	 	Title
	 
	 	 	Each Chargor represents and warrants to each Secured Party that except as disclosed in any
Report on Title relating to any of its Mortgaged Property:

	 	(a)	 	it is the legal and beneficial owner of its Mortgaged Property;
	 
	 	(b)	 	no breach of any law, regulation or covenant is outstanding which affects or
would be reasonably likely to affect materially the value, saleability or use of its
Mortgaged Property;
	 
	 	(c)	 	there are no covenants, agreements, stipulations, reservations, conditions,
interests, rights or other matters whatsoever affecting its Mortgaged Property which
conflict with its present use or adversely affect the value, saleability or use of
any of the Mortgaged Property, in each case to any material extent;

 

 

	 	(d)	 	nothing has arisen or has been created or is subsisting which would be an
overriding interest or an unregistered interest which overrides first registration
or registered dispositions over its Mortgaged Property and which would be
reasonably likely to affect materially its value, saleability or use;
	 
	 	(e)	 	all facilities (including access) necessary for the enjoyment and use of its
Mortgaged Property (including those necessary for the carrying on of its business at
the Mortgaged Property) are enjoyed by that Mortgaged Property and none of those
facilities are on terms entitling any person to terminate or curtail its use or on
terms which conflict with or restrict its use, where the lack of those facilities
would be reasonably likely to affect materially its value, saleability or use;
	 
	 	(f)	 	it has received no notice of any adverse claims by any person in respect of
its Mortgaged Property which if adversely determined would or would be reasonably
likely to materially adversely affect the value, saleability or use
of any of its
Mortgaged Property, nor has any acknowledgement of such been given to any person in
respect of its Mortgaged Property; and
	 
	 	(g)	 	its Mortgaged Property is held by it free from any Security Interest (other
than as permitted by the Credit Agreement) or any lease or licence which would be
reasonably likely to affect materially its value, saleability or use.

	6.3	 	Repair
	 
	 	 	Each Chargor must keep:

	 	(a)	 	its Premises in good and substantial repair and condition; and

	 
	 	(b)	 	its Fixtures in a good state of repair and in good working order and condition.

	6.4	 	Compliance with leases and covenants
	 
	 	 	Each Chargor must:

	 	(a)	 	perform all the material terms on its part contained in any lease, agreement
for lease, licence or other agreement or document which gives that Chargor a right to
occupy or use property comprised in its Mortgaged Property;
	 
	 	(b)	 	not do or allow to be done any act as a result of which any lease comprised
in its Mortgaged Property may become liable to forfeiture or otherwise be terminated;
and
	 
	 	(c)	 	duly and punctually comply with all material covenants and stipulations
affecting the Mortgaged Property or the facilities (including access) necessary for
the enjoyment and use of the Mortgaged Property and indemnify each Secured Party in
respect of any breach of those covenants and stipulations.

	6.5	 	Acquisitions
	 
	 	 	If a Chargor acquires any freehold or leasehold property after the date of this Deed, it
must:

	 	(a)	 	notify the Collateral Agent immediately;
	 
	 	(b)	 	immediately on request by the Collateral Agent and at the cost of that
Chargor, execute and deliver to the Collateral Agent a legal mortgage in favour of
the Collateral Agent of that property in any form (consistent with, and no more
onerous than, this Deed) which the Collateral Agent may require;

 

 

	 	(c)	 	if the title to that freehold or leasehold property is registered at the Land
Registry or required to be so registered, give the Land Registry written notice of
this Security; and
	 
	 	(d)	 	If applicable, ensure that this Security is correctly noted in the Register
of Title against that title at the Land Registry.

	6.6	 	Notices
	 
	 	 	Each Chargor must, within 14 days after the receipt by it of any application, requirement,
order or notice served or given by any public or local or any other authority with respect
to its Mortgaged Property (or any part of it) which would or would be reasonably likely to
have a material adverse effect on the value, saleabllity or use of any of the Mortgaged
Property:

	 	(a)	 	deliver a copy to the Collateral Agent; and
	 
	 	(b)	 	inform the Collateral Agent of the steps taken or proposed to be taken to
comply with the relevant requirement,

	6.7	 	Leases
	 
	 	 	No Chargor may in respect of its Mortgaged Property (or any part of it), unless expressly
permitted under the Credit Agreement: -

	 	(a)	 	grant or agree to grant (whether in exercise or independently of any
statutory power) any lease or tenancy;
	 
	 	(b)	 	agree to any amendment or waiver or surrender of any lease or tenancy;
	 
	 	(c)	 	commence any forfeiture proceedings in respect of any lease or tenancy;
	 
	 	(d)	 	confer upon any person any contractual licence or right to occupy;
	 
	 	(e)	 	consent to any assignment of any tenant’s interest under any lease or tenancy;
	 
	 	(f)	 	agree to any rent reviews in respect of any lease or tenancy; or
	 
	 	(g)	 	serve any notice on any former tenant under any lease or tenancy (or any
guarantor of that former tenant) which would entitle it to a new lease or tenancy.

	6.8	 	The Land Registry

	 	(a)	 	Each Chargor hereby consents to the registration as burdens on the folio of
any registered land of which it is the registered owner or, as applicable, the person
entitled to be registered as registered owner as well as on the folio of any further
registered lands of which it may from time to time become the registered owner or, as
applicable, the person entitled to be registered as registered owner, of:

	 	(i)	 	the first ranking fixed mortgage and charge created by this Deed on the said land;
	 
	 	(ii)	 	on crystallisation of the floating charge created by
this Deed on the said land, such crystallised floating charge; and
	 
	 	(iii)	 	the power of any Receiver appointed under this Deed to
charge the said land.

 

 

	 	(b)	 	The address of the Collateral Agent in Ireland for the service of notices is
c/o McCann FitzGerald, Riverside One, Sir John Rogerson’s Quay, Dublin 2 (Attn:
EDV).

	6.9	 	Deposit of title deeds
	 
	 	 	Each Chargor must deposit with the Collateral Agent all deeds and documents of title
relating to its Mortgaged Property and all local land charges, land charges and Land
Registry search certificates and similar documents received by it or on its behalf.
	 
	6.10	 	Development
	 
	 	 	No Chargor may unless expressly permitted under the Credit Agreement:

	 	(a)	 	make or permit others to make any application for planning permission in
respect of any part of the Mortgaged Property; or
	 
	 	(b)	 	carry out or permit to be carried out on any part of the Mortgaged Property
any development for which the permission of the local planning authority is required,
	 
	 	
except as part of carrying on its principal business where it would not or would not be
reasonably likely to have a material adverse effect on the value, saleabllity or use of
the Mortgaged Property or the carrying on of the principal business of that Chargor.

	6.11	 	Investigation of title
	 
	 	 	Each Chargor must grant the Collateral Agent or its lawyers on request all reasonable
facilities within the power of that Chargor to enable the Collateral Agent or its lawyers
(at the expense of that Chargor) after this Security has become enforceable to:

	 	(a)	 	carry out investigations of title to the Mortgaged Property; and
	 
	 	(b)	 	make such enquiries in relation to any part of the Mortgaged Property as a
prudent mortgagee might carry out.

	6.12	 	Report on Title
	 
	 	 	Each Chargor must, as soon as practicable after a request by the Collateral Agent at a
time when an Event of Default is continuing, supply the Collateral Agent with a Report on
Title of that Chargor to its Mortgaged Property concerning those items which may properly
be sought to be covered by a prudent mortgagee in a lawyer’s report of this nature.
	 
	6.13	 	Power to remedy
	 
	 	 	If a Chargor fails to perform any covenant or stipulation or any term of this Deed
affecting its Mortgaged Property, that Chargor must allow the Collateral Agent or its
agents and contractors:

	 	(a)	 	to enter any part of its Mortgaged Property;
	 
	 	(b)	 	to comply with or object to any notice served on that Chargor in respect of
its Mortgaged Property; and
	 
	 	(c)	 	to take any action as the Collateral Agent may reasonably consider
necessary or desirable to prevent or remedy any breach of any such covenant,
stipulation or term or to comply with or object to any such notice.

 

 

	 	 	That Chargor must immediately on request by the Collateral Agent pay the costs and
expenses of the Collateral Agent or its agents and contractors incurred in connection with
any action taken by it under this Subclause.

	6.14	 	Unregistered Property
	 
	 	 	Each Chargor shall use reasonable endeavours to:

	 	(a)	 	provide a completed and signed Land Registry application for to complete the
first registration of any unregistered real properties and registration of this
Security at the Land Registry; and
	 
	 	(b)	 	answer any requisitions raised by the Land Registry,

	 	 	Including in each case, without limitation, instruction of solicitors in these regards and
providing responses in respect of any title requisitions raised by the Land Registry.
	 
	7.	 	INVESTMENTS
	 
	7.1	 	Investments
	 
	 	 	Each Chargor represents and warrants to each Secured Party that:

	 	(a)	 	its investments are duly authorised, validly issued and fully paid;
	 
	 	(b)	 	its investments are not subject to any Security Interest (other than as
permitted by the Credit Agreement), any option to purchase or similar right;
	 
	 	(c)	 	it is the sole legal and beneficial owner of its investments (save for any
investments acquired by or issued to that Chargor after the date of this Deed that
are held by any nominee on its behalf or any investments transferred to the
Collateral Agent or its nominee pursuant to this Deed);
	 
	 	(d)	 	each Charged Company is a company incorporated with limited liability;
	 
	 	(e)	 	the constitutional documents of each Charged Company do not
and could not
restrict or inhibit any transfer of those shares on creation or enforcement of this
Security; and
	 
	 	(f)	 	there are no agreements in force which provide for the issue or allotment
of, or grant any person the right to call for the issue or allotment of, any share or
loan capital of each Charged Company (including any option or right of pre-emption or
conversion).

	7.2	 	Certificated Investments
	 
	 	 	Each Chargor must:

	 	(a)	 	deposit with the Collateral Agent, or as the Collateral Agent may direct,
any bearer instrument, share certificate or other document of title or evidence of
ownership in relation to any investment immediately in respect of any
investment
subject to this Security on the date of this Deed and thereafter immediately
following the acquisition by, or the issue to, that Chargor of any certificated
investment (unless the same is required for registering any transfer, in which case
the relevant Chargor must deposit the same immediately after such registration is
completed); and
	 
	 	(b)	 	immediately take any action and execute and deliver to the Collateral
Agent any share transfer or other document which may be requested by the Collateral

 

 

	 	 	 	Agent in order to enable the transferee to be registered as the owner or otherwise
obtain a legal title to that investment; this includes:

	 	(i)	 	delivering executed and (unless exempt from stamp duty), pre-stamped
share transfers in favour of the Collateral Agent or any of its nominees
as transferee or, if the Collateral Agent so directs, with the transferee
left blank; and
	 
	 	(ii)	 	procuring that those share transfers are registered by the
Charged Company in which the investments are held in the share register of
that Charged Company and that share certificates in the name of the
transferee are delivered to the Collateral Agent.

	 	(c)	 	The Collateral Agent may, at any time, complete the instruments of transfer
on behalf of the Chargor in favour of itself or such other person as it shall select.

	7.3	 	Changes to rights
	 
	 	 	No Chargor may (except to the extent permitted by the Credit Agreement and the
intercreditor Agreement) take or allow the taking of any action on its behalf which may
result in the rights attaching to any of its investments being altered or further shares
being issued.
	 
	7.4	 	Calls

	 	(a)	 	Each Chargor must pay all calls and other payments due and payable in
respect of any of its investments.
	 
	 	(b)	 	If a Chargor fails to do so, the Collateral Agent may (at its discretion)
pay those calls or other payments on behalf of that Chargor. That Chargor must
immediately on request reimburse the Collateral Agent for any payment made by the
Collateral Agent under this Subclause and, pending reimbursement, that payment will
constitute part of the Secured Obligations.

	7.5	 	Other obligations in respect of investments

	 	(a)	 	Each Chargor must comply with all requests for information which is within its
knowledge and which it is required to comply with by law (including section 81 of
the Companies Act, 1990) or under the constitutional documents relating to any of
its investments. If a Chargor fails to do so, the Collateral Agent may elect to
provide any information which it may have on behalf of that Chargor.
	 
	 	(b)	 	Each Chargor must promptly supply a copy to the Collateral Agent of any
information referred to in sub-paragraph (a) above.
	 
	 	(c)	 	It is acknowledged and agreed that notwithstanding anything to the contrary
contained in this Deed, each Chargor shall remain liable to observe and perform all
of the conditions and obligations assumed by it in respect of any of its
investments.
	 
	 	(d)	 	No Secured Party will be required in any manner to:

	 	(i)	 	perform or fulfil any obligation of a Chargor;
	 
	 	(ii)	 	make any payment;
	 
	 	(iii)	 	make any enquiry as to the nature or sufficiency of
any payment received by it or a Chargor;

 

 

	 	(iv)	 	present or file any claim or take any other action to collect or
enforce the payment of any amount; or
	 
	 	(v)	 	take any action in connection with the taking up of any (or
any offer of any) stocks, shares, rights, monies or other property paid,
distributed, accruing or offered at any time by way of interest, dividend,
redemption, bonus, rights, preference, option, warrant or otherwise,

	 	 	 	in respect of any Investment.

	7.6	 	Voting rights

	 	(a)	 	Unless and until the service of a notice by the Collateral Agent of an Event
of Default which is continuing, each Chargor may continue to exercise the voting
rights, powers and other rights in respect of its investments, provided that (x) it
shall deliver copies of any minutes of shareholder meeting in respect of the
investments to the Collateral Agent promptly upon receipt, and (y) it shall not
exercise such voting rights, powers and other rights in a manner which would result
in, or otherwise permit or agree to, (i) any variation of the rights attaching to or
conferred by any of the investments which the Collateral Agent considers prejudicial
to the interests of the Secured Parties or which conflict or derogate from any Loan
Documents or (ii) any increase in the issued share capital of a Charged Company,
which in the opinion of the Collateral Agent would prejudice the value of, or the
ability of the Collateral Agent to realise, the security created by this Deed.
	 
	 	(b)	 	Unless and until the service of a notice by the Collateral Agent of an Event
of Default which is continuing, if the relevant investments have been registered in
the name of the Collateral Agent or its nominee, the Collateral Agent (or that
nominee) must exercise the voting rights, powers and other rights in respect of the
investments in any manner which the relevant Chargor may direct in writing. The
Collateral Agent (or that nominee) will execute any form of proxy or other document
which the relevant Chargor may reasonably require for this purpose.
	 
	 	(c)	 	Subject to the terms of the Credit Agreement and the Intercreditor
Agreement, unless and until the service of a notice by the Collateral Agent of an
Event of Default which is continuing, all dividends or other income or distributions
paid or payable in relation to any investments must be paid to the relevant Chargor.
To achieve this:

	 	(i)	 	the Collateral Agent or its nominee will promptly execute any dividend
mandate necessary to ensure that payment is made direct to the relevant
Chargor); or
	 
	 	(ii)	 	if payment is made directly to the Collateral Agent (or its
nominee) before the service of a notice by the Collateral Agent or at a time
when an Event of Default is not continuing, the Collateral Agent (or that
nominee) will promptly pay that amount to the relevant Chargor.

	 	(d)	 	Unless and until the service of a notice by the Collateral Agent or an Event
of Default is continuing, the Collateral Agent shall use its reasonable endeavours to
promptly forward to the relevant Chargor all material notices, correspondence and/or
other communication it receives in relation to the investments.
	 
	 	(e)	 	Following the service of a notice by the Collateral Agent of an Event of
Default which is continuing, the Collateral Agent or its nominee may exercise or
refrain from exercising:

	 	(i)	 	any voting rights; and

 

 

	 	(ii)	 	any other powers or rights which maybe exercised by the
legal or beneficial owner of any investment, any person who is the holder of
any investment or otherwise

	 	 	 	in each case, in the name of the relevant Chargor, the registered holder or
otherwise and without any further consent or authority on the part of the
relevant Chargor and Irrespective of any direction given by any Chargor.
	 
	 	(f)	 	To the extent that the investments remain registered in the names of the
Chargors, each Chargor irrevocably appoints the Collateral Agent or its nominee as its
proxy to exercise all voting rights in respect of those Investments at any time after
the service of a notice by the Collateral Agent of the occurrence of an Event of
Default which is continuing.
	 
	 	(g)	 	Each Chargor must Indemnify the Collateral Agent against any loss or
liability incurred by the Collateral Agent as a consequence of the Collateral Agent
acting in respect of its investments on the direction of that Chargor.

	7.7	 	Clearance systems

	 	(a)	 	Each Chargor must, if so requested by the Collateral Agent:

	 	(i)	 	instruct any clearance system to transfer any lnvestment
held by it for that Chargor or its nominee to an account of the Collateral
Agent or its nominee with that clearance system; and
	 
	 	(ii)	 	take whatever action the Collateral Agent may request for
the demateriallsation or rematerialisation of any Investments held in a
clearance system.

	 	(b)	 	Without prejudice to the rest of this Subclause the Collateral Agent may, at
the expense of the relevant Chargor, take whatever action is required for the
demateriallsation or rematerialisation of the investments as necessary.

	7.8	 	Custodian arrangements 
	 
	 	 	Each Chargor must:

	 	(a)	 	promptly give notice of this Deed to any custodian of any Investment in any
form which the Collateral Agent may reasonably require; and
	 
	 	(b)	 	use reasonable endeavours to ensure that the custodian acknowledges that
notice in any form which the Collateral Agent may reasonably require.

	8.	 	INTELLECTUAL PROPERTY
	 
	8.1	 	Representations
	 
	 	 	Each Chargor represents and warrants to each Secured Party that as at the date of this Deed
or, if later, the date it became a Party:

	 	(a)	 	all Intellectual Property which is material to its business is identified in
Part 5 of Schedule 1 (Security Assets) opposite its name or in Part 5 of the schedule
to any Deed of Accession by which it became party to this Deed; and
	 
	 	(b)	 	it is not aware of any circumstances relating to the validity, subsistence or
use of any of its Intellectual Property which could reasonably be expected to have a
Material Adverse Effect.

 

 

	8.2	 	Preservation

	 	(a)	 	Each Chargor must promptly, if requested to do so by the Collateral Agent,
sign or procure the signature of, and comply with all instructions of the Collateral
Agent in respect of, any document required to make entries in any public register of
intellectual Property (including the United Kingdom Trade Marks Register) which either
record the existence of this Deed or the restrictions on disposal imposed by this
Deed.
	 
	 	(b)	 	No Chargor may, without the prior consent of the Collateral Agent or unless
permitted by the Credit Agreement:

	 	(i)	 	amend or waive or terminate, any of its rights in respect
of Intellectual Property; or
	 
	 	(ii)	 	take any action which might jeopardise the existence or
enforceability of any of its rights in respect of its Intellectual Property.

	9.	 	ACCOUNTS
	 
	9.1	 	Accounts

	 	(a)	 	Prior to the Revolving Credit Collateral Discharge Date all Security Accounts
must be maintained In accordance with the terms of the Revolving Credit Security
Agreement.
	 
	 	(b)	 	Following the Revolving Credit Collateral Discharge Date, all Security
Accounts must be maintained at a branch of the Account Bank approved by the Collateral
Agent.

	9.2	 	Change of Account Bank
	 
	 	 	Following the Revolving Credit Collateral Discharge Date:

	 	(a)	 	Any Account Bank may be changed to another bank and additional banks may be
appointed as Account Banks if the relevant Chargor and the Collateral Agent so agree;
	 
	 	(b)	 	Without prejudice to clause 9.2(a), a Chargor may only open an account with a
new Account Bank after the proposed new Account Bank agrees with the Collateral Agent
and the relevant Chargors, in a manner satisfactory to the Collateral Agent, to fulfil
the rote of the Account Bank under this Deed;
	 
	 	(c)	 	If there is a change of Account Bank, the net amount (If any) standing to the
credit of the Security Accounts maintained with the old Account Bank will be
transferred to the corresponding Security Accounts maintained with the new Account
Bank Immediately upon the appointment taking effect and each Chargor and the
Collateral Agent hereby irrevocably gives all authorisations and instructions
necessary for any such transfer to be made;
	 
	 	(d)	 	Each Chargor:

	 	(i)	 	must take any action which the Collateral Agent may require
to facilitate a change of Account Bank in accordance with Clause 9.2(a) above
and any transfer of credit balances (including the execution of bank mandate
forms); and
	 
	 	(ii)	 	irrevocably appoints the Collateral Agent as its attorney
to take any such action if that Chargor should fail to do so;

 

 

	 	(e)	 	No Chargor shall, during the subsistence of this Deed, without the Collateral
Agent’s prior consent, permit or agree to any variation of the rights attaching to
any Security Account or close any Security Account.

	9.3	 	Book debts and receipts

	 	(a)	 	Each Chargor must immediately deposit and direct their respective Account
Debtors to directly remit all payments on Accounts and all payments constituting
proceeds of Inventory or other Collateral (each term as defined in the Credit
Agreement) into a Security Account in accordance with Section 9.01 of the Revolving
Credit Agreement.
	 
	 	(b)	 	To the extent not deposited or remitted to, a Security Account under Clause
9.3(a) each Chargor must promptly get in and realise its:

	 	(i)	 	securities to the extent held by way of temporary
investment;
	 
	 	(ii)	 	book and other debts and other moneys owed to
it; and
	 
	 	(iii)	 	royalties, fees and income of any nature owed to
it,

in the ordinary course of Its business and (prior to payment into a Security
Account under Clause 9.3(c)) hold the proceeds of the getting in and realisation:

	 	(1)	 	prior to the Revolving Credit Collateral Discharge Date,
on trust for the Revolving Credit Collateral Agent; and
	 
	 	(2)	 	following the Revolving Credit Collateral Discharge Date,
on trust for the Collateral Agent.

	 	(c)	 	Each Chargor must pay all the proceeds of the getting in and realisation
under Clause 9.1(b) into a Security Account as soon as practicable on receipt except
to the extent that:

	 	(i)	 	prior to the Revolving Credit Collateral Discharge
Date, the Revolving Credit Collateral Agent otherwise; and
	 
	 	(ii)	 	following the Revolving Credit Collateral Discharge
Date, the Collateral Agent otherwise agrees.

	9.4	 	Withdrawals

	 	(a)	 	The Collateral Agent (or a Receiver) may (subject to the payment of any
claims having priority to this Security and subject to the Intercreditor Agreement)
withdraw amounts standing to the credit of any Security Account for application in
accordance with the Loan Documents.
	 
	 	(b)	 	No Chargor shall be entitled to receive, withdraw or otherwise transfer any
credit balance from time to time standing to the credit of any Security Account except
with the prior consent of the Collateral Agent.
	 
	 	(c)	 	Each Chargor must ensure that none of its Security Accounts Is overdrawn at
any time.
	 
	 	(d)	 	Each Chargor must ensure that each Account Bank operates each Security
Account in accordance with the terms of this Deed and the notices given under Clause
9.5 or as permitted by the Credit Agreement.

 

 

	9.5	 	Notices of charge

	 	(a)	 	Each Chargor must:

	 	(i)	 	following the Revolving Credit Collateral Discharge Date,
immediately give notice to each relevant Account Bank substantially in the
form of Part 1 of Schedule 2 (Forms of letter for Security Accounts); and
	 
	 	(ii)	 	use all reasonable endeavours to procure that each
relevant Account Bank acknowledges that notice substantially in the form of
Part 2 of Schedule 2 (Forms of letter for Security Accounts).

	 	(b)	 	As soon as practicable after receipt by the Collateral Agent of
the acknowledgement in paragraph (a)(ii) above from an Account Bank and provided that
no Default is outstanding, the Collateral Agent will send a letter to that Account
Bank substantially in the form of Part 3 of Schedule 2 (Forms of letter for Account
Bank).

	10.	 	RELEVANT CONTRACTS
	 
	10.1	 	Representations
	 
	 	 	Each Chargor represents and warrants to each Secured Party that:

	 	(a)	 	each of its Security Contracts is its legally binding, valid, and enforceable
obligation;
	 
	 	(b)	 	it is not in default of any of its obligations under any of its Security Contracts;
	 
	 	(c)	 	(save as otherwise agreed with the Collateral Agent) there is no prohibition
on assignment in any of its Primary Contracts; and
	 
	 	(d)	 	its entry into and performance of this Deed will not conflict with any term
of any of its Primary Contracts.

	10.2	 	Preservation

	 	(a)	 	No Chargor may, without the prior consent of the Collateral Agent or unless
expressly permitted by the Credit Agreement:

	 	(i)	 	amend or waive any term of, or terminate, any of its
Secondary Contracts;
	 
	 	(ii)	 	take any action which might jeopardise the existence or
enforceability of any of its Secondary Contracts; or
	 
	 	(iii)	 	in each case to the extent that the same would have a
Material Adverse Effect.

	 	(b)	 	No Chargor may, without the prior consent of the Collateral Agent or unless
expressly permitted by the Credit Agreement:

	 	(i)	 	amend or waive any term of, or terminate, any of its
Primary Contracts; or
	 
	 	(ii)	 	take any action which might jeopardise the existence or
enforceability of any of its Primary Contracts.

 

 

	10.3	 	Other undertaking
	 
	 	 	Each Chargor must:

	 	(a)	 	duly and promptly perform its obligations under each of its Security
Contracts; and
	 
	 	(b)	 	supply the Collateral Agent and any Receiver with copies of each of its
Security Contracts and any information and documentation relating to any of its
Security Contracts requested by the Collateral Agent or any Receiver.

	10.4	 	Rights

	 	(a)	 	Subject to the rights of the Collateral Agent under paragraph (b) below, the
Chargor must diligently pursue its rights under each of its Security Contracts, but
only if and to the extent that the exercise of those rights in the manner proposed
would not result in a Default under the terms of the Credit Agreement.
	 
	 	(b)	 	If an Event of Default is continuing, the Collateral Agent may exercise
(without any further consent or authority on the part of the relevant Chargor and
irrespective of any direction given by the Chargor) any of that Chargor’s rights under
its Security Contracts.

	10.5	 	Notices of assignment
	 
	 	 	Each Chargor must:

	 	(a)	 	immediately serve a notice of assignment, substantially in the form of Part 1
of Schedule 4 (Forms of letter for Primary Contracts), on each of the other parties to
each of its Primary Contracts (unless notice is given to those parties under the Loan
Documents); and
	 
	 	(b)	 	use all reasonable endeavours to procure that each of those other parties
acknowledges that notice, substantially in the form of Part 2 of Schedule 4 (Forms of
letter for Primary Contracts) within 14 days of the date of this Deed or the date of
any Deed of Accession by which it became party to this Deed or, if later, the date of
entry into that Primary Contract (as appropriate).

	11.	 	PLANT AND MACHINERY
	 
	11.1	 	Maintenance
	 
	 	 	Each Chargor must keep its Plant and Machinery in good repair and in good working order
and condition.
	 
	11.2	 	Nameplates
	 
	 	 	Each Chargor must take any action which the Collateral Agent may reasonably require to
evidence the interest of the Collateral Agent in its Plant and Machinery; this includes
(if so requested) fixing a nameplate on its Plant and Machinery in a prominent position
stating that:

	 	(a)	 	the Plant and Machinery is charged in favour of the Collateral Agent; and
	 
	 	(b)	 	the Plant and Machinery must not be disposed of without the prior consent of
the Collateral Agent unless permitted under the Credit Agreement.

 

 

	12.	 	INSURANCE POLICIES
	 
	12.1	 	Rights

	 	(a)	 	Subject to the rights of the Collateral Agent under paragraph (b) below, each
Chargor must diligently pursue its rights under each of its Insurance Policies, but
only if and to the extent that the exercise of those rights in the manner proposed
would not result in a Default under the terms of the Credit Agreement.
	 
	 	(b)	 	If an Event of Default is continuing:

	 	(i)	 	the Collateral Agent may exercise (without any further
consent or authority on the part of any Chargor and irrespective of any
direction given by any Chargor) any of the rights of any Chargor in
connection with any amounts payable to it under any of its Insurance
Policies;
	 
	 	(ii)	 	each Chargor must take such steps (at its own cost) as the
Collateral Agent may require to enforce those rights; this includes
initiating and pursuing legal or arbitration proceedings in the name of that
Chargor; and
	 
	 	(iii)	 	each Chargor must hold any payment received by it under
any of its Insurance Policies on trust for the Collateral Agent.

	12.2	 	Notice
	 
	 	 	Each Chargor must:

	 	(a)	 	immediately give notice of this Deed to each of the other parties to each of
the Insurance Policies by sending a notice substantially in the form of Part 1 of
Schedule 3 (Insurance Policies); and
	 
	 	(b)	 	use all reasonable endeavours to procure that each such other party delivers
a letter of undertaking to the Collateral Agent in the form of Part 2 of Schedule 3
(Insurance Policies) within 14 days of the date of this Deed or the date of any Deed
of Accession by which it became party to this Deed or, if later, the date of entry
into that Insurance (as appropriate).

	13.	 	WHEN SECURITY BECOMES ENFORCEABLE
	 
	13.1	 	Timing
	 
	 	 	This Security will become immediately enforceable if an Event of Default is continuing.
	 
	13.2	 	Enforcement
	 
	 	 	After this Security has become enforceable, the Collateral Agent may in its absolute
discretion enforce all or any part of this Security in any manner it sees fit or as the
Required Lenders direct.
	 
	14.	 	ENFORCEMENT OF SECURITY
	 
	14.1	 	General

	 	(a)	 	The power of sale and any other power conferred on a mortgagee by law
(including under section 19 of the Act) as varied or amended by this Deed will be
immediately exercisable at any time after this Security has become enforceable.

 

 

	 	(b)	 	For the purposes of all powers implied by law, the Secured Obligations are
deemed to have become due and payable on the date of this Deed.
	 
	 	(c)	 	Any restriction imposed by law on the power of sale (including under section
20 of the Act) or the right of a mortgagee to consolidate mortgages (including under
section 17 of the Act) does not apply to this Security.
	 
	 	(d)	 	Any powers of leasing conferred on the Collateral Agent by law are extended
so as to authorise the Collateral Agent to lease, make agreements for leases, accept
surrenders of leases and grant options as the Collateral Agent may think fit and
without the need to comply with any restrictions conferred by law (including under
section 18 of the Act or section 3 of the Conveyancing Act 1911).

	14.2	 	No liability as mortgagee in possession
	 
	 	 	Neither the Collateral Agent nor any Receiver will be liable, by reason of entering into
possession of a Security Asset:

	 	(a)	 	to account as mortgagee in possession or for any loss on realisation; or
	 
	 	(b)	 	for any default or omission for which a mortgagee in possession might be liable.

	14.3	 	Privileges
	 
	 	 	Each Receiver and the Collateral Agent is entitled to all the rights, powers, privileges
and immunities conferred by law (including the Act) on mortgagees and receivers duly
appointed under any law (including the Act).
	 
	14.4	 	Protection of third parties
	 
	 	 	No person (including a purchaser) dealing with the Collateral Agent or a Receiver or its
or his agents will be concerned to enquire:

	 	(a)	 	whether the Secured Obligations have become payable;
	 
	 	(b)	 	whether any power which the Collateral Agent or a Receiver is purporting to
exercise has become exercisable or is being properly exercised;
	 
	 	(c)	 	whether any money remains due under the Loan Documents; or
	 
	 	(d)	 	how any money paid to the Collateral Agent or to that Receiver is to be applied.

	14.5	 	Redemption of prior mortgages

	 	(a)	 	At any time after this Security has become enforceable, the Collateral Agent
may:

	 	(i)	 	redeem any prior Security Interest against any Security Asset; and/or
	 
	 	(ii)	 	procure the transfer of that Security Interest to itself; and/or
	 
	 	(iii)	 	settle and pass the accounts of the prior mortgagee, chargee
or encumbrancer; any accounts so settled and passed will be, in the absence
of manifest error, conclusive and binding on each Chargor.

	 	(b)	 	Each Chargor must pay to the Collateral Agent, immediately on demand, the
costs and expenses incurred by the Collateral Agent in connection with any such
redemption and/or transfer, including the payment of any principal or interest.

 

 

	14.6	 	Contingencies
	 
	 	 	If this Security is enforced at a time when no amount is due under the Loan Documents but
at a time when amounts may or will become due, the Collateral Agent (or the Receiver) may
pay the proceeds of any recoveries effected by it into such number of suspense accounts as
it considers appropriate.

	15.	 	RECEIVER
	 
	15.1	 	Appointment of Receiver

	 	(a)	 	Except as provided below, the Collateral Agent may appoint any one or more
persons to be a Receiver of all or any part of the Security Assets if:

	 	(i)	 	this Security has become enforceable; or
	 
	 	(ii)	 	a Chargor so requests the Collateral Agent in writing at any time.

	 	(b)	 	Any appointment under paragraph (a) above may be by deed, under seal or in
writing under its hand.
	 
	 	(c)	 	Except as provided below, any restriction imposed by law on the right of a
mortgagee to appoint a Receiver (including under section 24 of the Act) does not apply
to this Deed.

	15.2	 	Removal
	 
	 	 	The Collateral Agent may by writing under its hand remove any Receiver appointed by it and
may, whenever it thinks fit, appoint a new Receiver in the place of any Receiver whose
appointment may for any reason have terminated.
	 
	15.3	 	Remuneration
	 
	 	 	The Collateral Agent may fix the remuneration of any Receiver appointed by it and any
maximum rate imposed by any law (including under section 24(6) of the Act) will not apply.
	 
	15.4	 	Agent of each Chargor

	 	(a)	 	A Receiver will be deemed to be the agent of the relevant Chargor for all
purposes and accordingly will be deemed to be in the same position as a Receiver duly
appointed by a mortgagee under the Act. The relevant Chargor is solely responsible for
the contracts, engagements, acts, omissions, defaults and losses of a Receiver and for
liabilities incurred by a Receiver.
	 
	 	(b)	 	No Secured Party will incur any liability (either to a Chargor or to any
other person) by reason of the appointment of a Receiver or for any other reason.

	15.5	 	Relationship with Collateral Agent
	 
	 	 	To the fullest extent allowed by law, any right, power or discretion conferred by this
Deed (either expressly or impliedly) or by law on a Receiver may after this Security
becomes enforceable be exercised by the Collateral Agent in relation to any Security Asset
without first appointing a Receiver or notwithstanding the appointment of a Receiver.

 

 

	16.	 	POWERS OF RECEIVER
	 
	16.1	 	General

	 	(a)	 	A Receiver has all the rights, powers and discretions set out below in this
Clause in addition to those conferred on it by any law. This includes all the rights,
powers and discretions conferred on a receiver (or a receiver and manager) under the
Act and in Schedule 6.
	 
	 	(b)	 	If there is more than one Receiver holding office at the same time; each
Receiver may (unless the document appointing him states otherwise)
exercise all the
powers conferred on a Receiver under this Deed individually and to the exclusion of
any other Receiver.

	16.2	 	Possession
	 
	 	 	A Receiver may take immediate possession of, get in and collect any Security Asset.
	 
	16.3	 	Carry on business
	 
	 	 	A Receiver may carry on any business of any Chargor in any manner he thinks fit.
	 
	16.4	 	Employees

	 	(a)	 	A Receiver may appoint and discharge managers, officers, agents, accountants,
servants, workmen and others for the purposes of this Deed upon such terms as to
remuneration or otherwise as he thinks fit.
	 
	 	(b)	 	A Receiver may discharge any person appointed by any Chargor.

	16.5	 	Borrow money
	 
	 	 	A Receiver may raise and borrow money either unsecured or on the security of any Security
Asset either in priority to this Security or otherwise and generally on any terms and for
whatever purpose which he thinks fit.
	 
	16.6	 	Sale of assets

	 	(a)	 	A Receiver may sell, exchange, convert into money and realise any Security
Asset by public auction or private contract and generally in any manner and on any
terms which he thinks fit.
	 
	 	(b)	 	The consideration for any such transaction may consist of cash, debentures or
other obligations, shares, stock or other valuable consideration and any such
consideration may be payable in a lump sum or by instalments spread over any period
which he thinks fit.
	 
	 	(c)	 	Fixtures may be severed and sold separately from the property containing them
without the consent of the relevant Chargor.

	16.7	 	Leases
	 
	 	 	A Receiver may let any Security Asset for any term and at any rent (with or without a
premium) which he thinks fit and may accept a surrender of any lease or tenancy of any
Security Asset on any terms which he thinks fit (including the payment of money to a
lessee or tenant on a surrender).

 

 

	16.8	 	Compromise
	 
	 	 	A Receiver may settle, adjust, refer to arbitration, compromise and arrange any claim,
account, dispute, question or demand with or by any person who is or claims to be a
creditor of any Charger or relating in any way to any Security Asset.
	 
	16.9	 	Legal actions
	 
	 	 	A Receiver may bring, prosecute, enforce, defend and abandon any action, suit or
proceedings in relation to any Security Asset which he thinks fit.
	 
	16.10	 	Receipts
	 
	 	 	A Receiver may give a valid receipt for any moneys and execute any assurance or thing
which may be proper or desirable for realising any Security Asset.
	 
	16.11	 	Subsidiaries
	 
	 	 	A Receiver may form a Subsidiary of any Chargor and transfer to that Subsidiary any
Security Asset.
	 
	16.12	 	Delegation
	 
	 	 	A Receiver may delegate his powers in accordance with this Deed.
	 
	16.13	 	Lending
	 
	 	 	A Receiver may lend money or advance credit to any customer of any Chargor.
	 
	16.14	 	Protection of assets
	 
	 	 	A Receiver may:

	 	(a)	 	effect any repair or insurance and do any other act which any Chargor might
do in the ordinary conduct of its business to protect or improve any Security Asset;
	 
	 	(b)	 	commence and/or complete any building operation; and
	 
	 	(c)	 	apply for and maintain any planning permission, building regulation approval
or any other authorisation,
	 
	 	 in each case as he thinks fit.

	16.15	 	Other powers
	 
	 	 	A Receiver may:

	 	(a)	 	do all other acts and things which he may consider desirable or necessary for
realising any Security Asset or incidental or conducive to any of the rights, powers
or discretions conferred on a Receiver under or by virtue of this Deed or by law;
	 
	 	(b)	 	exercise in relation to any Security Asset all the powers, authorities and
things which he would be capable of exercising if he were the absolute beneficial
owner of that Security Asset; and
	 
	 	(c)	 	use the name of any Chargor for any of the above purposes.

 

 

	17.	 	APPLICATION OF PROCEEDS

	 	(a)	 	All moneys from time to time received or recovered by the Collateral Agent
or any Receiver in connection with the realisation or enforcement of all or any part
of the Security shall be held by the Collateral Agent on trust for the Secured
Parties from time to time in accordance with the provisions of the Security Trust
Deed to apply them at such times as the Collateral Agent sees fit, to the extent
permitted by applicable law (subject to the provisions of this Clause), in accordance
with the terms of the Loan Documents.
	 
	 	(b)	 	This Clause does not prejudice the right of any Secured Party to recover
any shortfall from a Loan Party.

	18.	 	TAXES, EXPENSES AND INDEMNITY

	 	(a)	 	Each Chargor must immediately on demand pay, or on an indemnity basis
reimburse any and all amounts for which it is liable under
Sections 2.06, 2.15, 2.16,
2.22, 7.10, 11.03 and 11.18 of the Credit Agreement.
	 
	 	(b)	 	Any amount due but unpaid shall carry interest from the date of such demand
until so reimbursed at the rate and on the basis mentioned in Clause 23.2 (Interest).
	 
	 	(c)	 	The Chargors shall pay and within three Business Days of demand indemnify
each Secured Party against any cost, liability or loss that Secured Party incurs in
relation to all stamp, registration, notarial and other Taxes and fees to which this
Deed, the Transaction Security or any judgement given in connection with them, is or
at any time may be subject.

	19.	 	DELEGATION
	 
	19.1	 	Power of Attorney
	 
	 	 	The Collateral Agent or any Receiver may delegate by power of
attorney or in any other
manner to any person any right, power or discretion exercisable by it under this Deed.
	 
	19.2	 	Terms
	 
	 	 	Any such delegation may be made upon any terms (including power to sub-delegate) which the
Collateral Agent or any Receiver may think fit.
	 
	19.3	 	Liability
	 
	 	 	Neither the Collateral Agent nor any Receiver will be in any way liable or responsible to
any Chargor for any loss or liability arising from any act, default, omission or
misconduct on the part of any Delegate.
	 
	20.	 	FURTHER ASSURANCES
	 
	 	 	Each Chargor must, at its own expense, take whatever action the Collateral Agent or a
Receiver may, acting reasonably, require for:

	 	(a)	 	creating, perfecting or protecting any security intended to be created by or
pursuant to this Deed (including procuring that any third party create a Security
interest in favour of the Collateral Agent over any Security Asset to which it holds
the legal title as trustee, nominee or agent);
	 
	 	(b)	 	facilitating the realisation of any Security Asset;

 

 

	 	(c)	 	facilitating the exercise of any right, power or discretion exercisable by the
Collateral Agent or any Receiver in respect of any Security Asset; or
	 
	 	(d)	 	creating and perfecting security in favour of the Collateral Agent
(equivalent to the security intended to be created by this Deed) over any assets of
any Chargor located in any jurisdiction outside Ireland.

This includes:

	 	(i)	 	the re-execution of this Deed;
	 
	 	(ii)	 	the execution of any legal mortgage, charge, transfer,
conveyance, assignment or assurance of any property, whether to the
Collateral Agent or to its nominee; and
	 
	 	(iii)	 	the giving of any notice, order or direction and the
making of any filing or registration,

	 
	 	 	 which, in any such case, the Collateral Agent may think expedient.
	 
	21.	 	POWER OF ATTORNEY
	 
	 	 	Each Chargor, by way of security, irrevocably and severally appoints the Collateral Agent
and each Receiver to be its attorney to take any action which that Chargor is obliged to
take under this Deed. Each Chargor ratifies and confirms whatever any attorney does or
purports to do under its appointment under this Clause.
	 
	22.	 	PRESERVATION OF SECURITY
	 
	22.1	 	Continuing security
	 
	 	 	This Security is a continuing security and will extend to the ultimate balance of the
Secured Obligations, regardless of any intermediate payment or discharge in whole or in
part.
	 
	22.2	 	Reinstatement

	 	(a)	 	If any discharge (whether in respect of the obligations of any Loan Party or
any security for those obligations or otherwise) or arrangement is made in whole or in
part on the faith of any payment, security or other disposition which is avoided or
must be restored on insolvency, liquidation, examination or otherwise without
limitation, the liability of each Chargor under this Deed will continue or be
reinstated as if the discharge or arrangement had not occurred.
	 
	 	(b)	 	Each Secured Party may concede or compromise any claim that any payment,
security or other disposition is liable to avoidance or restoration.

	22.3	 	Waiver of defences
	 
	 	 	The obligations of each Chargor under this Deed will not be affected by any act, omission
or thing which, but for this provision, would reduce, release or prejudice any of its
obligations under this Deed (whether or not known to it or any Secured Party). This
includes:

	 	(a)	 	any time or waiver granted to, or composition with, any person;
	 
	 	(b)	 	any release of any person under the terms of any composition or arrangement;

 

 

	 	(c)	 	the taking, variation, compromise, exchange, renewal or release of, or refusal
or neglect to perfect, take up or enforce, any rights against, or security over
assets of, any person;
	 
	 	(d)	 	any non-presentation or non-observance of any formality or other requirement
in respect of any instrument or any failure to realise the full value of any security;
	 
	 	(e)	 	any incapacity lack of power, authority or legal personality of or
dissolution or change in the members or status of any person;
	 
	 	(f)	 	 any amendment (however fundamental) of a Loan Document or any other document
or security; or
	 
	 	(g)	 	any unenforceability, illegality, invalidity or non-provability of any
obligation of any person under any Loan Document or any other document or security or
the failure by any member of the Group to enter into or be bound by any Loan
Document.

	22.4	 	Immediate recourse
	 
	 	 	Each Chargor waives any right it may have of first requiring any Secured Party (or any
trustee or agent on its behalf) to proceed against or enforce any other right or security
or claim payment from any person or file any proof or claim in any insolvency,
examination, winding-up or liquidation proceedings relative to any other Loan Party or any
other person before claiming from that Chargor under this Deed.
	 
	22.5	 	Appropriations
	 
	 	 	Until all amounts which may be or become payable by the Loan Parties under the Loan
Documents have been irrevocably paid in full, each Secured Party (or any trustee or agent
on its behalf) may without affecting the liability of any Chargor under this Deed:

	 	(a)	 	refrain from applying or enforcing any other moneys, security or rights held
or received by that Secured Party (or any trustee or agent on its behalf) against
those amounts; or
	 
	 	(b)	 	apply and enforce them in such manner and order as it sees fit (whether
against those amounts or otherwise; and
	 
	 	(c)	 	hold in an interest-bearing suspense account any moneys received from any
Chargor or on account of that Chargor’s liability under this Deed.

	22.6	 	Non-competition
	 
	 	 	Unless:

	 	(a)	 	all amounts which may be or become payable by the Loan Parties under the Loan
Documents have been irrevocably paid in full; or
	 
	 	(b)	 	the Collateral Agent otherwise directs,

no Chargor will, after a claim has been made or by virtue of any payment or performance
by it under this Deed:

	 	(i)	 	be subrogated to any rights, security or moneys held,
received or receivable by any Secured Party (or any trustee or agent on its
behalf);

 

 

	 	(ii)	 	be entitled to any right of contribution or indemnity in respect of
any payment made or moneys received on account of that Chargor’s
liability under this Clause;
	 
	 	(iii)	 	claim, rank, prove or vote as a creditor of any Loan
Party or its estate in competition with any Secured Party (or any trustee or
agent on its behalf); or
	 
	 	(iv)	 	receive, claim or have the benefit of any payment,
distribution or security from or on account of any Loan Party, or exercise
any right of set-off as against any Loan Party.

Each Chargor must hold in trust for and must immediately pay or transfer to the Collateral
Agent for the Secured Parties any payment or distribution or benefit of security received
by it contrary to this Clause or in accordance with any directions given by the Collateral
Agent under this Clause.

	22.7	 	Additional security

	 	(a)	 	This Deed is in addition to and is not in any way prejudiced by any other
security now or subsequently held by any Secured Party;
	 
	 	(b)	 	No prior security held by any Secured Party (in its capacity as such or
otherwise) over any Security Asset will merge into this Security.

	22.8	 	Delivery of documents
	 
	 	 	To the extent any Chargor is required hereunder to deliver any deed, certificate document
of title or other document relating to the Security to the Collateral Agent for purposes
of possession or control and is unable to do so as a result of having previously delivered
such to the Revolving Credit Collateral Agent in accordance with the terms of the
Revolving Credit Loan Documents, such Chargor’s obligations hereunder with respect to such
delivery shall be deemed satisfied by the delivery to the Revolving Credit Collateral
Agent.
	 
	22.9	 	Security held by Chargor
	 
	 	 	No Chargor may, without the prior consent of the Collateral Agent, hold any security from
any other Loan Party in respect of that Chargor’s liability under this Deed. Each Chargor
will hold any security held by it in breach of this provision on trust for the Collateral
Agent.
	 
	23.	 	MISCELLANEOUS
	 
	23.1	 	Covenant to pay
	 
	 	 	Each Chargor must pay or discharge the Secured Obligations in the manner provided for in
the Loan Documents.
	 
	23.2	 	Interest
	 
	 	 	If a Chargor fails to pay any sums on the due date for payment of that sum the Chargor
shall pay interest on such sum (before and after any judgment and to the extent interest
at a default rate is not otherwise being paid on that sum) from the date of demand until
the date of payment calculated and compounded in accordance with the provisions of Section
2.06(c) of the Credit Agreement

 

 

	23.3	 	Tacking
	 
	 	 	Each Lender must perform its obligations under the Credit Agreement (Including any
obligation to make available further advances).
	 
	23.4	 	New Accounts

	 	(a)	 	If any subsequent charge or other interest affects any Security Asset, any
Secured Party may open a new account with any Loan Party.
	 
	 	(b)	 	If a Secured Party does not open a new account, it will nevertheless be
treated as if it had done so at the time when it received or was deemed to have
received notice of that charge or other interest.
	 
	 	(c)	 	As from that time all payments made to that Secured Party will be credited or
be treated as having been credited to the new account and will not operate to reduce
any Secured Liability.

	23.5	 	Time deposits
	 
	 	 	Without prejudice to any right of set-off any Secured Party may have under any Loan
Document or otherwise, if any time deposit matures on any account a Chargor has with any
Secured Party within the Security Period when:

	 	(a)	 	this Security has become enforceable; and
	 
	 	(b)	 	no Secured Liability is due and payable,

	 	 	that time deposit will automatically be renewed for any further maturity which that
Secured Party in its absolute discretion considers appropriate unless that Secured Party
otherwise agrees in writing.
	 
	23.6	 	Notice of assignment
	 
	 	 	This Deed constitutes notice in writing to each Chargor of any charge or assignment of a
debt owed by that Chargor to any other member of the Group and contained in any Loan
Document.
	 
	23.7	 	Perpetuity period
	 
	 	 	The perpetuity period under the rule against perpetuities if applicable to the trust
constituted by this Deed shall be the period of 21 years from the date of death of the
last survivor of the issue now living of the late President of Ireland, Eamon de Valera
and, subject thereto, if the Collateral Agent determines that all of the obligations of
the Chargor under this Deed have been fully and unconditionally discharged, such trusts
shall be wound up.
	 
	24.	 	LOAN PARTIES

	 	(a)	 	All communications under this Deed to or from a Secured Party must be sent
through the Collateral Agent or the Administrative Agent.
	 
	 	(b)	 	Each Loan Party that is a Party to this Deed irrevocably appoints the
Original Chargor to act as its agent:

	 	(i)	 	to give and receive all communications under the
Security Documents or this Deed;
	 
	 	(ii)	 	to supply all information concerning itself to any Secured Party; and

 

 

	 	(iii)	 	to agree and sign all documents under or in connection with this
Deed without further reference to any Loan Party; this includes any
amendment or waiver of this Deed which would otherwise have required the
consent of the Loan Parties.

	 	(c)	 	The Original Chargor hereby accepts the appointment under Clause 24(b).
	 
	 	(d)	 	Any communication given to the Original Chargor in connection with this
Deed will be deemed to have been given also to the other Loan Parties that are party
to this Deed.
	 
	 	(e)	 	The Collateral Agent may assume that any communication made by the
Original Chargor is made with the consent of each Loan Party that is party to this
Deed.

	25.	 	RELEASE
	 
	 	 	At the end of the Security Period (or as required by the Loan Documents), the Collateral
Agent must, at the request and cost of the Original Chargor, take whatever action is
reasonably necessary to release the relevant Security Assets from this Security provided
that to the extent that any Security Interest granted by any Chargor over the Term Loan
Priority Collateral (as defined in the Intercreditor Agreement) is released under this
clause, that Chargor shall take whatever action is required under the Revolving Credit
Security Agreement, including serving any notice thereunder.
	 
	26.	 	COUNTERPARTS
	 
	 	 	This Deed may be executed in any number of counterparts and all of those counterparts
taken together shall be deemed to constitute one and the same instrument.
	 
	27.	 	NOTICES
	 
	27.1	 	Communications in Writing
	 
	 	 	Each communication to be made under or in connection with this Deed shall be made in
writing and, unless otherwise stated, shall be made by fax or letter.
	 
	27.2	 	Addresses
	 
	 	 	Any notice or other communication herein required or permitted to be given to a party to
this Deed shall be sent to the relevant party’s address as set forth in the Credit
Agreement or any substitute address, fax number or department or officer as the relevant
party may notify to the Collateral Agent (or the Collateral Agent may notify to the other
parties, if a change is made by the Collateral Agent) by not less than five business days’
notice.
	 
	27.3	 	Delivery
	 
	 	 	Any communication or document made or delivered by one person to another under or in
connection with this Deed will only be effective:

	 	(i)	 	if by way of fax, when received in legible form; or
	 
	 	(ii)	 	if by way of letter, when it has been left at the relevant
address or, as the case may be, five days after being deposited in the post
postage prepaid in an envelope addressed to it at that address.

Any communication or document to be made or delivered to the Collateral Agent under or in
connection with this Deed shall be effective only when actually received by the Collateral
Agent and then only if it is expressly marked for the attention of the department

 

 

or officer identified with the Collateral Agent’s communication details (or any substitute
department or officer as the Collateral Agent shall specify for this purpose).

	27.4	 	Notification of address and fax number
	 
	 	 	Promptly upon receipt of notification of an address and fax number or change of address or
fax number pursuant to Clause 27.2 (Addresses) or changing its own address or fax number,
the Collateral Agent shall notify the other parties.
	 
	27.5	 	English language

	 	(a)	 	Any notice given under or in connection with this Deed must be in English.
	 
	 	(b)	 	All other documents provided under or in connection with this Deed must be:

	 	(i)    	 	(i)     in English; or
	 
	 	(ii)   	 	(ii)     if not in English, and if so required by the
Collateral Agent, accompanied by a certified English translation and, in
this case, the English translation will prevail unless the document is a
constitutional, statutory or other official document.

	28.	 	THE COLLATERAL AGENT AS TRUSTEE

	 	(a)	 	On the terms set out in the Credit Agreement and the Security Trust Deed, the
Collateral Agent declares itself trustee of the security and other rights (Including
but not limited to the benefit of the covenants contained herein), titles and
interests constituted by this Assignment and of all monies, property and assets paid
to the Collateral Agent or to its order or held by the Collateral Agent or its nominee
or received or recovered by the Collateral Agent or its nominee pursuant to or in
connection with this Assignment with effect from the date hereof to hold the same on
trust for itself and each of the Secured Parties absolutely in accordance with their
entitlements under the Loan Documents (save as may otherwise be agreed between the
Collateral Agent and the other Secured Parties from time to time).
	 
	 	(b)	 	All moneys received by the Collateral Agent shall be held by it upon trust
for itself and the Secured Parties according to their respective interests to apply
the same in accordance with Clause 10.
	 
	 	(c)	 	The parties to this Assignment declare that the perpetuity period applicable
to the trusts constituted by this Assignment shall be a period of 21 years after the
death of the last survivor of the issue living on the date of this Assignment of the
late President of Ireland, Eamon de Valera unless there has previously been
legislation making it lawful for the trusts constituted by this Assignment to
continue.
	 
	 	(d)	 	The rights, powers and discretions conferred on the Collateral Agent by this
Assignment shall be supplemental to the Trustee Act 1893 and in addition to any which
may be vested in the Collateral Agent by the Loan Documents, general law or otherwise.

	29.	 	GOVERNING LAW
	 
	 	 	This Deed shall be governed by and construed in accordance with the laws of Ireland.

 

 

	30.	 	ENFORCEMENT
	 
	30.1	 	Jurisdiction

	 	(a)	 	The Irish courts have exclusive jurisdiction to settle any dispute in
connection with this Deed.
	 
	 	(b)	 	The Irish courts are the most appropriate and convenient courts to settle any
such dispute in connection with this Agreement. Each Chargor agrees not to argue to
the contrary and waives objection to those courts on the grounds of inconvenient forum
or otherwise in relation to proceedings in connection with this Deed.
	 
	 	(c)	 	This Clause is for the benefit of the Secured Parties only. To the extent
allowed by law, a Secured Party may take:

	 	(i)	 	proceedings in any other court; and
	 
	 	(ii)	 	concurrent proceedings in any number of jurisdictions.

	 	(d)	 	References in this Clause to a dispute in connection with this Deed include
any dispute as to the existence, validity or termination of this Deed.

	30.2	 	Waiver of immunity

	 	(a)	 	Each Chargor Irrevocably and unconditionally:

	 	(i)	 	agrees not to claim any immunity from proceedings brought
by a Secured Party against it in relation to this Deed and to ensure that no
such claim is made on its behalf;
	 
	 	(ii)	 	consents generally to the giving of any relief or the
issue of any process in connection with those proceedings; and
	 
	 	(iii)	 	waives all rights of immunity in respect of it or its assets.

This Deed has been executed and delivered as a deed on the date stated at the beginning of this
Deed.

 

 

SCHEDULE 1

SECURITY ASSETS

PART 1

REAL PROPERTY

Part A

Unregistered Land

None as at the date hereof

Part B

Registered Land

None as at the date hereof

PART 2

CHARGED SHARES

	 	 	 	 	 	 	 	 	 
	 	 	 	 	Name of	 	 	 	 
	 	 	Name of	 	nominee (if any)	 	 	 	 
	 	 	Charged	 	by whom shares	 	Class of shares	 	Number of shares
	Chargor	 	Company	 	are held	 	held	 	held
	 
	 	 	 	 	 	 	 	 
	Novelis Aluminium 

Holding Company

	 	Novelis Benelux

SA/NV
	 	N/A
	 	 	 	60,000 
	 
	 	 	 	 	 	 	 	 
	Novelis Aluminium 

Holding Company

	 	Novelis
 Deutschland
GmbH
	 	N/A
	 	Ordinary
	 	1 of €100,350,000

1 of €11,150,000

PART 3

SPECIFIC PLANT AND MACHINERY

Chargor                                        
                    
 Description

None as at the date hereof

PART 4

SECURITY CONTRACTS

A. Primary Contracts

 

 

Chargor                                        
                     Description

Intercompany Notes:

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	Principal	 	Date of	 	Maturity
	Noteholder	 	Obligor	 	Amount	 	Issuance	 	Date
	Novelis Aluminium 

Holding Company

	 	Novelis
 Deutschland
GmbH
	 	$	172,255,970	 	 	Jan. 6, 2005
	 	Jan. 62015
	 
	 	 	 	 	 	 	 	 	 	 
	Novelis Aluminium 

Holding Company

	 	Novelis 
Deutschland
GmbH
	 	$	188,561,280	 	 	Jan. 6, 2005
	 	Jan. 6 2015

B. Secondary Contracts

None as at the date hereof

PART 5

SPECIFIC INTELLECTUAL PROPERTY

Chargor                                        
                     Description

None as at the date hereof

PART 6

SECURITY ACCOUNTS

	 	 	 	 	 	 	 
	Bank	 	Account number	 	Sort code
	Commerzbank Berlin Germany

	 	 	209550300	 	 	100 400 00

 

 

SCHEDULE 2

FORMS OF LETTER FOR SECURITY ACCOUNTS

PART 1

NOTICE TO ACCOUNT BANK

To: [Account Bank]

Copy: [Collateral Agent]

[Date]

Dear Sirs,

Security agreement dated [   ] between Novelis Aluminium Holding Company and UBS AG, Stamford Branch
(the Security Agreement)

This
letter constitutes notice to you that under the Security Agreement we
have charged (by way of
a first fixed charge) in favour of UBS AG, Stamford Branch as agent and trustee for the Secured
Parties referred to in the Security Agreement (the Collateral Agent)
as first priority chargee all of our rights in respect of any amount standing to the credit of any account maintained by us with
you at any of your branches (the Security Accounts) and the debts represented by the Security
Accounts.

We irrevocably instruct and authorise you to:

	 	(a)	 	disclose to the Collateral Agent any information relating to any Security
Account requested from you by the Collateral Agent;
	 
	 	(b)	 	comply with the terms of any written notice or instruction relating to any
Security Account received by you from the Collateral Agent;
	 
	 	(c)	 	hold all sums standing to the credit of any Security Account to the order of
the Collateral Agent;
	 
	 	(d)	 	pay or release any sum standing to the credit of any Security Account in
accordance with the written instructions of the Collateral Agent issued from time to
time; and
	 
	 	(e)	 	pay all sums received by you for our account(s) to the credit of each
Security Account.

We are not permitted to withdraw any amount from any Security Account without the prior written
consent of the Collateral Agent.

We acknowledge that you may comply with the instructions in this letter without any further
permission from us and without any enquiry by you as to the justification for or validity of any
request, notice or instruction.

The
instructions in this letter may not be revoked or amended without the prior written consent of
the Collateral Agent.

This letter is governed by Irish law.

Please send to the Collateral Agent at [•] with a copy to ourselves the attached acknowledgement
confirming your agreement to the above and giving the further undertakings set out in the
acknowledgement.

 

 

Yours faithfully,

 

	 	 	 
	 

(Authorised signatory)

	 	 
	for and on behalf of
	 	 
	Novelis Aluminium Holding Company/
	 	 
	[Chargor]
	 	 

 

 

PART 2

ACKNOWLEDGEMENT OF ACCOUNT BANK

To:     [Collateral
Agent]

Copy: Novelis Aluminium Holding Company / [Chargor]

[Date]

Dear Sirs,

Security agreement dated [  ] between Novelis Aluminium Holding Company and UBS AG, Stamford Branch
(the Security Agreement)

We confirm receipt from [Novelis Aluminium Holding Company] (the Chargor) of a notice dated [•] of
a charge upon the terms of the Security Agreement over all the rights of the Chargor to any amount
standing to the credit of any of its accounts with us at any of our branches (the Security
Accounts).

We confirm that we:

	 	(a)	 	accept the Instructions contained in any outstanding notice and agree to
comply with the notice;
	 
	 	(b)	 	have not received notice of the interest of any third party in any Security
Account;
	 
	 	(c)	 	hereby irrevocably and unconditionally waive our rights in respect of and
agree not to make any set-off or deduction from the Security Accounts or invoke any
right of retention in relation to the Security Accounts, other than in relation to our
customary agreed charges or fees payable in connection with the operation or
maintenance of the Security Accounts in the ordinary course of business.
	 
	 	(d)	 	will disclose to you any information relating to any Security Account
requested from us by you;
	 
	 	(e)	 	will comply with the terms of any written notice or instruction relating to
any Security Account received by us from you;
	 
	 	(f)	 	will hold all sums standing to the credit of any Security Account to your
order unless otherwise required by law;
	 
	 	(g)	 	will pay or release any sum standing to the credit of any Security Account in
accordance with your written instructions issued from time to time unless otherwise
required by law;
	 
	 	(h)	 	will not permit any amount to be withdrawn from any Security Account without
your prior written consent or unless otherwise required by law; and
	 
	 	(i)	 	will pay all sums received by us for the account of the Chargor to a
Security Account of the Chargor with us unless otherwise required by law or
instructed by you.

Nothing contained in any of our arrangements with you shall commit us to providing any facilities
or making advances available to the Chargor.

 

 

This letter is governed by Irish law.

Yours faithfully,

 

	 	 	 
	 

For and on behalf of

	 	 
	(Authorised signatory) [Account Bank]
	 	 

 

 

PART 3

LETTER FOR OPERATION OF SECURITY ACCOUNTS

To: [Account Bank]

[DATE]

Dear Sirs,

Security
agreement dated [   ] between Novelis Aluminium Holding Company as Original Chargor and UBS
AG, Stamford Branch (the Security Agreement)

We refer to:

	1.	 	the Security Agreement;
	 
	2.	 	the notice to you dated [•] from [Novelis Aluminium Holding Company] (the Chargor) concerning
the accounts referred to in that notice (the Security Accounts); and
	 
	3.	 	the acknowledgement dated [•] issued by you to in response to the notice (the
Acknowledgment).

In this letter, Security Account means, in relation to [specify Chargor], account number [•], sort
code [•] or account number [•], sort code [•] and, in relation to [specify Chargor], account number
[•], sort code [•].

We hereby instruct you to forward all amounts standing to the credit of each Blocked Account on
the close of business on each business day to the following account in the name of [•] account
number [•], sort code [•].

We confirm that we consent to the following transactions in relation to the Security Accounts:

	 	(a)	 	you may make payments on the instructions of the Chargor and debit the
amounts involved to any Security Account of the Chargor;
	 
	 	(b)	 	you may debit to any Security Account of the Chargor amounts due to you by
the Chargor; and
	 
	 	(c)	 	in order to enable you to make available net overdraft, balance offset,
netting or pooling facilities to the Chargor you may set-off debit balances on any
Security Account against credit balances on any other Security Account of the Chargor
if those Security Accounts are included in group netting arrangements operated by you
for the Chargor.

We may by notice to you amend or withdraw these consents, if the consents referred to above are
withdrawn, you may immediately set-off debit balances and credit balances on the Security Accounts
as and to the extent that the same relate to your customary agreed charges or fees payable in
connection with the operation or maintenance of the Security Accounts in the ordinary course of
business.

This
letter is governed by Irish law.

Please acknowledge receipt of this letter by signing and returning to us the enclosed copy of this
letter.

Yours faithfully,

 

 

	 	 	 
	 

For and on behalf of

	 	 
	(Authorised signatory) [Collateral Agent]
	 	 
	 
	 	 
	Receipt acknowledged
	 	 
	 
	 	 
	 
	 	 
	 

For and on behalf of

	 	 
	(Authorised signatory) [Account Bank]
	 	 

[Date]

 

 

SCHEDULE 3

FORMS OF LETTER FOR INSURANCE POLICIES

PART 1

FORM OF
NOTICE OF ASSIGNMENT

(for attachment by way of endorsement to the insurance policies)

To: [insurer]

Copy: [Collateral Agent]

[Date]

Dear Sirs,

Security
agreement dated [•] between Novelis Aluminium Holding Company and UBS AG, Stamford Branch
(the Security Agreement)

This letter constitutes notice to you that under the Security Agreement we as chargor (the
Chargor) assigned in favour of UBS AG, Stamford Branch as agent and trustee for the Secured
Parties referred to in the Security Agreement (the Collateral Agent) as first priority assignee
all amounts payable to it under or in connection with any contract of insurance of whatever nature
taken out with you by or on behalf, of it or under which it has a right to claim (each an
Insurance) and all of its rights in connection with those amounts.

A reference in this letter to any amounts excludes all amounts received or receivable under or in
connection with any third party liability Insurance and required to settle a liability of an Loan
Party to a third party.

We confirm that:

	(a)	 	we will remain liable under [the] [each]
Insurance to perform all the obligations we assumed
under [the] [that] Insurance; and
	 
	(b)	 	none of the Collateral Agent, its agents, any receiver or any other person will at any time
be under any obligation or liability to you under or in respect of [the] [any] Insurance.

We will also remain entitled to exercise all of our rights under [the] [each] Insurance and you
should continue to give notices under [the] [each] Insurance to us, unless and until you receive
notice from the Collateral Agent to the contrary. In this event, unless the Collateral Agent
otherwise agrees in writing:

	(a)	 	all amounts payable to us under [the] [each] Insurance must be paid to the Collateral Agent;
and
	 
	(b)	 	any of our rights in connection with those amounts will be exercisable by, and notices must
be given to, the Collateral Agent or as it directs.

Please note that we have agreed that we will not amend or waive any term of or terminate [any of]
the lnsurance[s] without the prior consent of the Collateral Agent.

The Instructions in this letter may not be revoked or amended without the prior written consent of
the Collateral Agent.

 

 

Please note on the relevant contracts the Collateral Agent’s interest as loss payee and the
Collateral Agent’s interest as first priority assignee of those amounts and rights and send to the
Collateral Agent at [•} with a copy to ourselves the attached acknowledgement confirming your
agreement to the above and giving the further undertakings set out in the acknowledgement.

We acknowledge that you may comply with the instructions in this letter without any further
permission from us or any Chargor and without any enquiry by you as to the justification for or
validity of any request, notice or instruction.

This letter is governed by Irish law.

Yours faithfully,

	 
	 	 	 
	 

For and on behalf of

	 	 
	[NOVELIS ALUMIMIUM HOLDING COMPANY]
	 	 
	[authorised signatory]
	 	 

 

 

PART 2

FORM OF LETTER OF UNDERTAKING

To: [Collateral Agent]

Copy:
[Novelis Alumimium Holding Company (the Chargor)

[Date]

Dear Sirs,

Security agreement dated [•] between Novelis Aluminium Holding Company and UBS AG, Stamford Branch
(the Security Agreement)

We confirm receipt from UBS AG, Stamford Branch on behalf of the Chargor of a notice dated [•] of
an assignment by the Chargor upon the terms of the Security Agreement of all amounts payable to it
under or in connection with any contract of Insurance of whatever nature taken out with us by or on
behalf of it or under which it has a right to claim and all of its rights in connection with those
amounts.

A reference in this letter to any amounts excludes all amounts received or receivable under or in
connection with any third party liability Insurance and required to settle a liability of an Loan
Party to a third party,

In consideration of your agreeing to the Chargor continuing its Insurance arrangements with us we:

	1.	 	accept the instructions contained in the notice and agree to comply with the notice;
	 
	2.	 	confirm that we have not received notice of the interest of any third party in those amounts
and rights;
	 
	3.	 	undertake to note on the relevant contracts your interest as loss payee and as first priority
assignee of those amounts and rights;
	 
	4.	 	undertake to disclose to you without any reference to or further authority from the Chargor
any information relating to those contracts which you may at any time
request;
	 
	5.	 	undertake to notify you of any breach by the Chargor of any of those contracts and to allow
you or any of the other Secured Parties (as defined in the Security Agreement) to remedy that
breach; and
	 
	6.	 	undertake not to amend or waive any term of or terminate any of those contracts on request by
the Chargor without your prior written consent.

This letter is governed by Irish law.

Yours faithfully,

	 
	 	 	 
	 

for and on behalf of

	 	 
	[Insurer]
	 	 

 

 

SCHEDULE 4

FORMS OF LETTER FOR PRIMARY CONTRACTS

PART 1

NOTICE TO COUNTERPARTY

To: [Counterparty]

Copy: [Collateral Agent]

[Date]

Dear Sirs,

Security agreement dated [•] between Novelis Aluminium Holding Company and others and UBS A6,
Stamford Branch (the Security Agreement)

This letter constitutes notice to you that under the Security Agreement we as chargor, have
assigned in favour of UBS AG, Stamford Branch as agent and trustee for the Secured Parties referred
to in the Security Agreement (the Collateral Agent) as first priority assignee all of our rights in
respect of [Insert details of Primary Contract(s)] (the Primary Contract[s]).

We confirm that:

	(a)	 	we will remain liable under [the] [each] Primary Contract to perform all the obligations
assumed by it under [the] [that] Primary Contract; and
	 
	(b)	 	none of the Collateral Agent, its agents, any receiver or any other person will at any time
be under any obligation or liability to you under or in respect of [the] [any] Primary
Contract.

We will also remain entitled to exercise all of our rights under [the] [each] Primary Contract and
you should continue to give notice under [the] [each] Primary Contract, unless and until you
receive notice from the Collateral Agent to the contrary. In this event, all of our rights will be
exercisable by, and notices must be given to, the Collateral Agent or as it directs.

Please note that we have agreed that we will not [amend or waive any term of or] terminate [any
of] the Primary Contracts] without the prior consent of the Collateral Agent.

The instructions in this letter may not be revoked or amended without the prior written consent of
the Collateral Agent.

Please send to the Collateral Agent at [•] with a copy to ourselves the attached acknowledgement
confirming your agreement to the above and giving the further undertakings set out in the
acknowledgement.

We acknowledge that you may comply with the instructions in this letter without any further
permission from us and without any enquiry by you as to the justification for or validity of any
request, notice or instruction.

This letter is governed by Irish law.

Yours faithfully,

 

 

	 	 	 
	 

for and on behalf of

	 	 
	[NOVELIS ALUMINIUM HOLDING COMPANY]
	 	 
	(Authorised Signatory)
	 	 

 

 

PART 2

ACKNOWLEDGEMENT OF COUNTERPARTY

To: [Collateral Agent]

Copy:
[Novelis Aluminium Holding Company (the Chargor)

[Date]

Dear Sirs,

Security
agreement dated [•] between Novelis Aluminium Holdings Company and UBS AG, Stamford Branch
(the Security Agreement)

We confirm receipt from the Chargor of a notice dated [•] of an assignment on the terms of the
Security Agreement of all of the Chargor’s rights in respect of [insert details of the Primary
Contract(s) (the Primary Contract[s]).

We confirm that we:

	1.	 	accept the instructions contained in the notice and agree to comply with the notice;
	 
	2.	 	have not received notice of the interest of any third party in [any of] the Primary
Contract[s];
	 
	3.	 	undertake to disclose to you without any reference to or further authority from the Chargor
any information relating to [the][those] Primary
Contract[s] which you may at any time request;
	 
	4.	 	[undertake to notify you of any breach by the Chargor of [the] [any of those] Primary
Contract[s] and to allow you or any of the other Secured Parties (as defined in the Security
Agreement) to remedy that breach;] and
	 
	5.	 	undertake not to amend or waive any term of or terminate [the] [any of those] Primary
Contract[s] on request by the Chargor without your prior written consent.

This letter is governed by Irish law.

Yours faithfully,

	 	 	 

	 
	 

for and on behalf of

	 	 
	(Authorised signatory)
	 	 
	[Counterparty]
	 	 

 

 

SCHEDULE 5

FORM OF DEED OF ACCESSION

THIS DEED is dated [

BETWEEN:

	(1)	 	[•] (registered number [•]) with its registered office at [•] (the Additional Chargor);
	 
	(2)	 	NOVELIS ALUMINIUM HOLDING COMPANY in its capacity as Original Chargor under the Security
Agreement referred to below (the Original Chargor); and
	 
	(3)	 	UBS AG, Stamford Branch as agent and trustee for the Secured Parties under and as defined in
the Security Agreement referred to below (the Collateral Agent).

BACKGROUND:

	(A)	 	The Additional Chargor is a subsidiary of Novelis Inc.
	 
	(B)	 	The Original Chargor has entered into a security agreement dated [•], 200[•] with the
Collateral Agent (the Security Agreement).
	 
	(C)	 	The Additional Chargor has agreed to enter into this Deed and to become a Chargor under the
Security Agreement.
	 
	(D)	 	The Additional Chargor will also, by execution of separate instruments, become a party to the
Intercreditor Agreement as a Loan Party and the Security Trust Deed as a Chargor (as defined
in the Security Agreement).
	 
	(E)	 	It is intended that this document takes effect as a deed notwithstanding the fact that
a party may only execute this document under hand.

IT IS AGREED as follows:

	1.	 	Interpretation
	 
	 	 	Terms defined in the Security Agreement have the same meaning in this Deed unless given a
different meaning in this Deed. This Deed is a Loan Document.
	 
	2.	 	Accession
	 
	 	 	With effect from the date of this Deed the Additional Chargor:

	 	(i)	 	will become a party to the Security Agreement as a Chargor; and
	 
	 	(ii)	 	will be bound by all the terms of the Security Agreement
which are expressed to be binding on a Chargor, including without limitation,
the guarantee contained in Section 2 of the Security Agreement.

	3.	 	Security
	 
	 	 	Without limiting the generality of the other provisions of this Deed and the Security
Agreement, the Additional Chargor as beneficial owner, as continuing security for the
payment, performance and discharge of the Secured Obligations, hereby:-

	 	(a)	 	grants, conveys, transfers and demises, mortgages and charges to the
Collateral Agent as trustee for the Secured Parties ALL THAT AND THOSE the freehold
and leasehold property of the Additional Chargor both present and

 

 

	 	 	 	future (including specifically, but not limited to, the lands, hereditaments and premises
specified in Part 1 A of Schedule 1 to this Deed and all buildings and (to the extent the
same are not otherwise subject to a fixed charge hereunder) all fixtures (including trade
fixtures) from time to time on every such property and all fixed plant and machinery of
the Additional Chargor both present and future therein or thereon to hold the same as to
so much thereof as is of freehold tenure unto the Collateral Agent as trustee for the
Secured Parties in fee simple and as to so much thereof as is of leasehold tenure unto the
Collateral Agent as trustee for the Secured Parties for the residue of the respective
terms of years for which the Additional Chargor now or, as applicable at the time of
acquisition, then holds the same less the last three days of each such term, subject to
the proviso for redemption herein contained PROVIDED that each Chargor hereby declares
that it shall henceforth stand possessed of such of the said property as is of leasehold
tenure for the last day or respective last days of the term or terms or years for which
the same is held by it, and for any further or other interest which it now has or may
hereafter acquire or become entitled to in the same or any part thereof by virtue of any
Act or Acts of the Oireachtas or otherwise howsoever, in trust for the Collateral Agent as
trustee for the Secured Parties and to be conveyed assigned or otherwise dealt with
whether to the Collateral Agent as trustee for the Secured Parties or its nominee or
otherwise as the Collateral Agent shall direct but subject to the same equity of
redemption as may for the time being be subsisting in the said property, and PROVIDED
FURTHER that each Chargor doth hereby irrevocably appoint the secretary (and any
authorised signatory) for the time being of the Collateral Agent to be its attorney, in
its name and on its behalf, and as its act and deed to sign seal and deliver and otherwise
perfect every or any Deed of Conveyance of the leasehold reversion which may be desired by
the Collateral Agent in order to vest in the Collateral Agent as trustee for the Secured
Parties or in any person or persons in trust as agent for the Collateral Agent, subject as
aforesaid, or in any purchaser of the said property or any part thereof, the said
leasehold reversion and any further or other interest which the Additional Chargor now has
or may hereafter acquire or become entitled to in the said leasehold premises or any part
thereof by virtue of any Act or Acts of the Oireachtas or otherwise howsoever;
	 
	 	(b)	 	as registered owner or, as the case may be, person entitled to be registered as owner,
charges to the Collateral Agent as trustee for the Secured Parties ALL THAT AND THOSE the
freehold and leasehold lands, hereditaments, premises and property of the Additional Chargor
registered under the Registration of Title Act, 1964 both present and future (including,
specifically, but not limited to, the lands, hereditaments and premises specified in Part 1 B
of Schedule 1 to this Deed) together with all buildings and (to the extent the same are not
otherwise subject to a fixed charge hereunder) all fixtures (including trade fixtures) from
time to time on every such property and all fixed plant and machinery both present and future
therein with the payment performance and discharge of the Secured Obligations;
	 
	 	(c)	 	charges to the Collateral Agent as trustee for the Secured Parties all its other estate,
right, title or interests in any land or buildings now belonging to the Additional Chargor
(including, specifically, but not limited to, the lands, hereditaments and premises specified
in Schedule I to this Deed) (whether or not the legal estate is vested in the Additional
Chargor or registered in the name of the Additional Chargor), and all future estate, right,
title or interests of the Additional Chargor in such lands, hereditaments and premises and in
any other freehold or leasehold property (whether or not registered) vested in or held by or
on behalf of such Chargor from time to time and/or the proceeds of sale thereof together in
all cases (to the extent the same are not otherwise subject to a fixed charge hereunder) all
fixtures (including trade fixtures) and all fixed plant and machinery from time to time
therein with the payment performance and discharge of the Secured Obligations;

 

 

	 	(d)	 	charges by way of a first legal mortgage all shares owned by it and specified
in Part 2 of the schedule to this Deed;
	 
	 	(e)	 	charges by way of a first fixed charge all plant, machinery, computers,
office equipment or vehicles specified in Part 3 of the schedule to this Deed;
	 
	 	(f)	 	assigns absolutely, subject to a proviso for re-assignment on redemption, all
of its rights in respect of the agreements specified in Part 4 of the schedule to this
Deed; [and]
	 
	 	(g)	 	charges by way of a first fixed charge all of its rights in respect of any
Intellectual Property specified in Part 5 of the schedule to this Deed [; and
	 
	 	(h)	 	[charges by way of a first fixed charge all of its
rights in respect of any
amount standing to the credit of any Security Account specified in Part 6 of the
schedule to this Deed.]

	4.	 	Miscellaneous
	 
	 	 	With effect from the date of this Deed:

	 	(a)	 	the Security Agreement will be read and construed for all purposes, and the
Additional Chargor will take all steps and actions (including serving any notices), as
if the Additional Chargor had been an original party in the capacity of Chargor (but
so that the security created on this accession will be created on the date of this
Deed);
	 
	 	(b)	 	any reference in the Security Agreement to this Deed and similar phrases will
include this Deed and all references in the Security Agreement to Schedule 1 (or any
part of it) will include a reference to the schedule to this Deed (or relevant part of
it); and
	 
	 	(c)	 	Novelis Aluminium Holding Company and each other Chargor agrees to all
matters provided for in this Deed.

	5.	 	Law
	 
	 	 	This Deed is governed by Irish law.
	 
	 	 	This Deed has been executed and delivered as a deed on the date stated at the beginning of
this Deed

 

 

SCHEDULE

			
	 	 	 
	PART
	 	1
	REAL PROPERTY	 	 
	 	 	 
	Part A	 	 
	 	 	 
	Unregistered Land	 	 
	 	 	 
	Part B	 	 
	 	 	 
	Registered Land	 	 
	 	 	 
	PART
	 	2
	SHARES	 	 

	 	 	 	 	 	 	 
	Name of	 	 	 	 	 	 
	company in	 	Name of nominee (if	 	 	 	 
	which shares	 	any) by whom	 	Class of	 	Number of shares
	are held	 	shares are held	 	shares held	 	held
	 
	 	 	 	 	 	 
	[     ]

	 	[     ]
	 	[     ]
	 	[     ]

			
	 	 	 
	PART
	 	3
	SPECIFIC PLANT AND MACHINERY	 	 
	 	 	 
	 	 	 
	Description	 	 
	 	 	 
	PART
	 	4
	SECURITY CONTRACTS	 	 
	 	 	 
	A. Primary Contracts	 	 
	 	 	 
	Description	 	 
	 	 	 
	[e.g. Hedging Documents]	 	 
	 	 	 
	[e.g. Acquisition Documents]	 	 
	 	 	 
	[e.g. Intercompany Loan Agreements]	 	 
	 	 	 
	B. Secondary Contracts	 	 
	 	 	 
	PART
	 	5
	SPECIFIC INTELLECTUAL PROPERTY RIGHTS	 	 
	 	 	 
	Description	 	 

 

 

			
	[PART
	 	6
	SECURITY ACCOUNTS	 	 
	 	 	 
	Account number Sort code]	 	 

 

 

SIGNATORIES (TO DEED OF ACCESSION)

THE ADDITIONAL CHARGOR

	 	 	 	 	 	 	 	 	 
	The Common Seal of

[                    
           ]

	 	 	)	 	 	                    
	 	Director
	was hereunto affixed

	 	 	)	 	 	 	 	 
	in the presence of

	 	 	)	 	 	                    
	 	Director/Secretary
	 
	 	 	 	 	 	 	 	 
	THE ORIGINAL CHARGOR
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	The Common Seal of

	 	 	 	 	 	                    
	 	Director
	Novelis Aluminium
Holding Company
	 	 	 	 	 	 	 	 
	was hereunto affixed

	 	 	)	 	 	 	 	 
	in the presence of

	 	 	)	 	 	                    
	 	Director/Secretary
	 
	 	 	 	 	 	 	 	 
	THE COLLATERAL AGENT
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Signed by:
	 	 	 	 	 	 	 	 
	for
and on behalf of

	 	 	 	 	 	                    
	 	Authorised Signatory
	
UBS AG, Stamford Branch
	 	 	 	 	 	 	 	 

 

 

Schedule 6

Powers of a Receiver

	(1)	 	enter upon, take possession of, collect and get in all or any of the Security Assets,
exercise in respect of any shares or securities all voting or other powers or rights available
to a registered holder thereof in such manner as he may think fit and bring, defend or
discontinue any proceedings (including, without limitation, proceedings for the winding up of
any Chargor) or submit to arbitration in the name of any Chargor or otherwise as may seem
expedient to him;
	 
	(2)	 	carry on, manage, develop, reconstruct, amalgamate or diversify the business of any Chargor
or any part thereof or concur in so doing, lease or otherwise acquire and develop or improve
properties or other assets without being responsible for loss or damage;
	 
	(3)	 	raise or borrow any money (including money for the completion with or without modification of
any building in the course of construction and any development or project in which any Chargor
was engaged) from or incur any other liability to the Collateral Agent or others on such terms
with or without security as he may think fit and so that any such security may be or include a
charge on the whole or any part of the Security Assets ranking in priority to the security
constituted by the Security Agreement or otherwise;
	 
	(4)	 	sell by public auction or private contract, let, surrender or accept surrenders, grant
licences or otherwise dispose of or deal with all or any of the Security Assets or concur In
so doing in such manner for such consideration and generally on such terms and conditions as
he may think fit (including, without limitation, conditions excluding or restricting the
personal liability of the Receiver or the Collateral Agent) with full power to convey, let,
surrender, accept surrenders or otherwise transfer or deal with such Security Assets in the
name and on behalf of any Chargor or otherwise and so that the covenants and contractual
obligations may be granted and assumed in the name of and so as to bind such Chargor if the
Receiver shall consider it necessary or expedient so to do; any such sale, lease or
disposition may be for cash, debentures or other obligations, shares, stock, securities or
other valuable consideration and be payable immediately or by instalments spread over such
period as he shall think fit and so that any consideration received
or receivable shall ipso
facto forthwith be and become charged with the payment of all Secured Obligations; plant,
machinery and fixtures may be severed and sold separately from the premises containing them
and the Receiver may apportion any rent and the performance of any obligations affecting the
premises sold without the consent of any Chargor;
	 
	(5)	 	promote, procure the formation or otherwise acquire the share capital of any body corporate
with a view to such body corporate purchasing, leasing, licensing or otherwise acquiring
interests in all or any of the Security Assets or otherwise, arrange for companies to trade or
cease to trade and to purchase, lease, licence or otherwise acquire all or any of the Security
Assets on such terms and conditions whether or not including payment by instalments secured or
unsecured as he may think fit;
	 
	(6)	 	make any arrangement or compromise or enter into or cancel any contracts which he shall think
expedient;
	 
	(7)	 	make and effect such repairs, renewals and improvements to the Security Assets or any part
thereof as he may think fit and maintain, renew, take out or increase insurances including,
without limitation, indemnity insurance;
	 
	(8)	 	appoint managers, agents, officers, and employees for any of such purposes or to guard or
protect the Security Assets at such salaries and commissions and for such periods and on such
terms as he may determine and dismiss the same;

 

 

	(9)	 	make or require the directors of any Chargor to make calls, conditionally or
unconditionally, on the members of such Chargor in respect of uncalled capital and enforce
payment of any call so made by action (In the name of such Chargor or the Receiver as may
be thought fit) or otherwise;
	 
	(10)	 	without any consent by or notice to any Chargor, exercise on behalf of any Chargor all the
powers and provisions conferred on a landlord or a tenant by any legislation from time to time
in force relating to rents or otherwise in respect of any part of the Security Assets but
without any obligation to exercise any of such powers and without any
liability in respect of
powers so exercised or omitted to be exercised;
	 
	(11)	 	without any consent or notice by or to any Chargor, exercise for and on behalf of any Chargor
and in the name of any Chargor all powers and rights of any Chargor relevant to and necessary
to effect the registration in the Land Registry of the crystallisation of the floating charge
created by this Security Agreement and/or the appointment of a Receiver hereunder;
	 
	(12)	 	settle, arrange, compromise and submit to arbitration any accounts, claims, questions or
disputes whatsoever which may arise in connection with the business of any Chargor or the
Security Assets or any part thereof or in any way relating to the security constituted by this
Security Agreement, bring, take, defend, compromise, submit to and discontinue any actions,
suits, arbitrations or proceedings whatsoever whether civil or criminal in relation to the
matters aforesaid, enter into, complete, disclaim, abandon or disregard, determine or rectify
all or any of the outstanding contracts or arrangements of any
Chargor in any way relating to
or affecting the Security Assets or any part thereof and allow time for payment of any debts
either with or without security as he shall think expedient;
	 
	(13)	 	redeem any prior encumbrance and settle and agree the accounts of the encumbrancer; any
accounts so settled and agreed shall (subject to any manifest error) be conclusive and binding
on any Chargor and the money so paid shall be deemed an expense properly incurred by the
Receiver;
	 
	(14)	 	generally, at the option of the Receiver, use the name of any Chargor in the exercise of all
or any of the powers hereby conferred;
	 
	(15)	 	transfer all or any part of the Security Assets to any other company or body corporate,
whether or not formed or acquired for the purpose;
	 
	(16)	 	sell any intellectual property hereby mortgaged or charged or assigned in consideration of a
royalty or other periodical payment;
	 
	(17)	 	exercise, or permit any Chargor or any nominees of any Chargor to exercise, any powers or
rights incidental to the ownership of the Security Assets or any part thereof in such manner
as he may think fit;
	 
	(18)	 	sign any document, execute any deed and do all such other acts and things as may be
considered by the Receiver to be incidental or conducive to any of the matters or powers
conferred on him by Security Agreement or to the realisation of the Collateral Agent’s
security and use the name of any Chargor for all the above purposes.

 

 

 

 

SIGNATORIES (to Security Agreement)

	 	 	 	 	 	 	 	 	 
	THE ORIGINAL CHARGOR
	 	 	 	 	 	 	 	 
	The Common Seal of

	 	 	 	 	 	 
	 	Director
	Novelis Aluminium Holding Company
	 	 	 	 	 	 	 	 
	was hereunto affixed

	 	 	 	 	 	)	 	 
	in the presence of

	 	 	)	 	 	 
	 	Director/Secretary
	 
	 	 	 	 	 	 	 	 
	THE COLLATERAL AGENT
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Signed by:
	 	 	 	 	 	 	 	 
	for and on behalf of

	 	 	 	 	 	/s/ Mary. E. Evans
	 	Associate Director
	UBS AG, STAMFORD BRANCH
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Signed by:
	 	 	 	 	 	 	 	 
	for and on behalf of

	 	 	 	 	 	/s/ Irja R. Otsa
	 	Associate Director
	UBS AG, STAMFORD BRANCH
	 	 	 	 	 	 	 	 

 

 

EXHIBIT M-7

Form of

BRAZILIAN SECURITY AGREEMENT

[See Tab # I.2-3, 5-7.]

EXHIBIT M-7-1

 

 

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RECEIVABLES PLEDGE AGREEMENT

This Receivables Pledge Agreement (the
“Agreement”) is entered among:

(a) NOVELIS DO BRASIL LTDA., a Brazilian limited liability company, with its principal
place of business in the City of São Paulo, State of São Paulo, at Avenida das Nacções
Unidas, 12.551, 15th floor, enrolled with the Taxpayers’ Registry of the
Ministry of Finance (CNPJ/MF) under No. 60.561.800/0001-03, hereby
represented In accordance with its articles of association, by its undersigned legal
representatives (hereinafter referred to as the “Pledgor” or “Novelis do Brasil”); and

(b) UBS AG, STAMFORD BRANCH, a financial institution, having its office at 677 Washington
Boulevard, Stamford, Connecticut, 06901, in its capacity as collateral agent on behalf of
the Secured Parties under the Term Loan Credit Agreement (as defined below), hereby
represented by its undersigned attorney-in-fact (hereinafter referred to as “UBS AG” or
“Collateral Agent”).

The
Pledgor, the Collateral Agent are hereinafter jointly referred to as
the “Parties”.

     WHEREAS, Novelis Inc., a corporation formed under the Canada Business Corporations Act
(the “Canadian Borrower”), Novelis Corporation, a Texas corporation (the “US Borrower”, and
with Canadian Borrower, the “Borrowers”), AV Aluminum Inc., a corporation formed under the
Canada Business Corporations Act, the Subsidiary Guarantors, the Lenders, UBS AG Stamford
Branch as administrative agent (in such capacity, “Administrative Agent”) for the Lenders,
UBS AG, Stamford Branch, as collateral agent (in such capacity, “Collateral Agent”) for the
Secured Parties, the other agents party thereto, and ABN Amro Incorporated and UBS Securities
LLC, as joint lead arrangers and joint bookmanagers (in such capacities, “Arrangers”), have
entered into a certain term loan credit agreement dated as of July 6, 2007 (as amended,
restated, supplemented or otherwise modified, the “Term Loan Credit Agreement”);

     WHEREAS, the Borrowers have requested the Lenders to extend credits in form of Term
Loans on the Closing Date in an aggregate principal amount not in excess of the Dollar
Equivalent of US$ 960,000,000.00 (Nine Hundred Sixty Million United States Dollars),
consisting of (i) U.S. Term Loans in an aggregate principal amount not in excess of US$
660,000,000.00 (Six Hundred Sixty Million United States Dollars) and (ii) Canadian Term Loans
in an aggregate principal amount not in excess of the Dollar Equivalent of US$ 300,000,000.00
(Three Hundred Million United States Dollars) (“Term Loan Facilities”);

     WHEREAS, it is a condition precedent to the obligation of the lenders and the issuers to
make their respective extensions of credit to the Borrowers under the Term Loan Credit
Agreement, that the Pledgor shall have executed and delivered this Agreement to the
Collateral Agent;

     NOW, THEREFORE, in consideration of the premises and to induce the lenders, the issuers and
the Collateral Agent to enter into the Term Loan Credit Agreement, and to induce the lenders and
the issuers to make their respective extensions of credit to the Borrowers thereunder, the Pledgor
hereby agrees with the Collateral Agent as follows:

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Section One - Defined Terms

1.1 Capitalized terms not defined in this Agreement shall have the same meaning given
to such terms in the Term Loan Credit Agreement, unless a contrary indication appears.

1.2 Any references to the Collateral Agent in this Agreement shall be construed as references
to the Collateral Agent acting on behalf of the Secured Parties.

1.3 Any references to a Person in this Agreement shall include its successors and assigns; and

1.4 Any references to a document is a reference to that document as amended, restated, novated
and/or supplemented through the time such reference becomes effective.

1.5 All references to sections and exhibits in this Agreement are references to sections and
exhibits of this Agreement, except if expressly stated otherwise.

Section Two - Purpose

2.1. In order to secure (a) the Obligations, (b) the due and punctual payment and performance
of all obligations of Borrowers and the other Loan Parties under each Hedging Agreement
entered into with any counterparty that is a Secured Party, and (c) all obligations
of every nature now or hereafter existing under this Agreement (the “Secured
Obligations”), Pledgor hereby pledges in favor of the Collateral Agent, on behalf of the
Secured Parties, all of its rights and title over all of the credit instruments, invoices and
receivables issued by Pledgor in the normal course of its business, which are duly Identified
and described in Exhibit 1 hereto, less the amount of US$25,000,000 or the equivalent
thereof in other currencies (the “Pledged Receivables”) which receivables are
collected by Pledgor and deposited at the bank accounts held by Pledgor described in
Exhibit 2 hereto (the “Bank Accounts”) with all they represent, as collateral security
for the regular and full compliance by the Borrowers of its Secured Obligations, pursuant to
the provisions of Articles 1,451 to 1,460 of the Brazilian Civil Code.

2.2. For the purposes of Article 1,424 of the Brazilian Civil Code, the basic terms of the
Secured Obligations are those described in Schedule 2.2. hereof.

2.3. Under the terms of Article 1,452, sole paragraph, of the Brazilian Civil Code, the
Pledgor is ensured the right to maintain possession of the documentation evidencing the title
of the Pledged Receivables, being responsible, however, for its conservation and
maintenance.

2.4. In order to comply with Article 1,453 of the Brazilian Civil Code, Pledgor hereby agrees
and undertakes to notify each of the banks in which the Bank Accounts are held within 10 (ten)
days as of the date of execution of this Agreement, in the form of the notice attached hereto
as Schedule 2.4 (the “Notice”).

Section Three - Representations and Warranties

3.1. Pledgor hereby represents and warrants that, as of the date hereof:

	(i)	 	Pledgor is the legal owner of the Pledged Receivables, which are free from any liens
other than (i) those contemplated herein; and (ii) those created under the Receivables

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	 	 	Pledge Agreement entered into by and between LASALLE Business Credit, LLC, as collateral
agent and Novelis do Brasil Ltda. as of the same date hereof;
	 
	(ii)	 	Pledgor has full capacity to pledge the Pledged Receivables in favor of the Collateral
Agent, and that the execution, delivery, performance and grant of the pledge created hereby
have been duly authorized by all necessary corporate actions on the part of Pledgor, and do
not and will not (i) violate any provision of the articles of association, charter or other
organizational documents of Pledgor, or (ii) conflict with, result in a breach of, or
constitute (or, with the giving of notice or lapse of time or both, would constitute) a
default under, or, except for consents and approvals that have been obtained and are in
full force and effect, require the approval or consent of any person pursuant to any
material contractual obligation of Pledgor, or (iii) violate any applicable law binding on
Pledgor;
	 
	(iii)	 	Upon completion of the registration and the delivery of the notice as required in
Section 5 and Schedule 2.4. hereof, the pledge of the Pledged Receivables will constitute a
legal, valid, and perfected security interest on the Pledged Receivables, enforceable in
accordance with its terms against Pledgor and any third parties, except as enforcement may
be limited by bankruptcy, insolvency, reorganization, moratorium or other similar laws
relating to creditors’ rights generally;
	 
	(iv)	 	The disposal of the Pledged Receivables, judicially and/or out of court, under the terms
of this Agreement, does not violate any law, rules, regulations, agreements, injunctions,
decrees or court rulings binding upon Pledgor, There is no action, suit, proceeding,
arbitration or governmental investigation pending or threatened in respect to the Pledged
Receivables. There exists no impediment that would prevent the disposal of the Pledged
Receivables, judicially and/or out of court, under the terms of this Agreement;
	 
	(v)	 	Pledgor has not sold or granted any rights of preemption over or agreed to sell or grant
any right of preemption over or otherwise disposed of or agreed to dispose of the benefit of
all or any of its rights, title and interest in and to all or any part of the Pledged
Receivables;
	 
	(vi)	 	Pledgor has full knowledge of all terms and conditions of the Term Loan Credit Agreement,
and of the Intercreditor Agreement including but not limited to the basic terms of the
Secured Obligations as described in Schedule 2.2 hereto; and
	 
	(vii)	 	The undertaking by Pledgor of the obligations provided herein will not, in any event,
cause any material adverse effect upon or any material change to the business, operations,
properties, equipment, condition (financial or otherwise) or prospects of Pledgor, or the
impairment of the ability of Pledgor to perform and conduct its business in its normal
course (“Material Adverse Effects”).

3.2. Pledgor further undertakes to maintain valid the representations and warranties in this
Section 3 during the term of this Agreement.

Section Four - Covenants

4.1. Pledgor covenants and agrees that until termination and discharge of this Agreement in
accordance with Section 7:

(i) Pledgor will, at its sole cost and expense, make, execute, acknowledge and deliver all
such further acts, deeds, conveyances, agreements, assignments, notices of assignment and

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additional transfers as the Collateral Agent shall from time to time reasonably request, which
may be necessary in the reasonable judgment of the Collateral Agent to assure, perfect, assign or
transfer to the Collateral Agent the security interest and the rights created, transferred or
assigned hereunder. All reasonable costs and expenses in connection with the granting and
maintenance of the security interests hereunder, including reasonable legal fees and other
reasonable costs in connection with the grant, registration, perfection, maintenance or
continuity of the security interests hereunder or the preparation, execution or registration of
documents and any other acts which the Collateral Agent may reasonably incur in connection with
the granting, registration, perfection, maintenance or continuity of such security interest,
shall be paid by Pledgor promptly upon demand. Pledgor will not, and will not permit any of its
subsidiaries to, without the prior approval of the Collateral Agent, enter into any agreement
which may impair their ability to comply with, or which may prohibit them from complying with,
the provisions hereof.

(ii) As a mean to comply with the obligations set forth herein, in accordance with Article 684 of
the Brazilian Civil Code, it shall grant, execute and deliver to the Collateral Agent on the date
hereof (and on any later date to each successor of the Collateral Agent, as necessary to ensure
that such successor Secured Party has powers to carry out the acts and rights specified herein),
and shall maintain in full force and effect until the full payment of the Secured Obligations, an
irrevocable power of attorney in the form of Exhibit 3 hereto. The powers granted are
irrevocable during the entire term of this Agreement;

(iii) It shall, upon the occurrence and continuation of an Event of Default, as may be evidenced
by written notice from any of the Collateral Agent to Pledgor (Irrespective of any notice to the
contrary by any other third party), comply with all written instructions received by it from any
of the Collateral Agent in connection with the exercise by the Collateral Agent of the remedies
set forth in Section 6 hereof;

(iv) It shall notify Collateral Agent, in reasonable details, within 5 (five) days of the
occurrence of any event that causes a Material Adverse Effect, or the Impairment of the ability of
Pledgor to perform, or Collateral Agent to enforce, any obligation under this Agreement or any
event that might affect the integrity or value of the Pledged Receivables or the rights of the
Collateral Agent under this Agreement; and

(v) It will comply in all respects with all applicable laws of any governmental authority having
jurisdiction over its business.

Section Five - Registration of the Pledge

5.1. Pledgor shall, within 20 (twenty) days, counting from the date hereof, file this Agreement
for registration in the competent Registry of Deeds and Documents to perfect the pledge of the
Pledged Receivables and deliver to Collateral Agent evidence of such filing. As soon as possible,
but in no event later than 20 (twenty) days from the date such registration is completed, Pledgor
shall deliver to the Collateral Agent evidence that this Agreement was duly registered and
recorded in the competent Registry of Deeds and Documents.

Section Six - Rights and Powers of the Collateral Aaent upon an Event of Default;
Remedies.

6.1. Without prejudice to any of the foregoing provisions and the possibility of judicial
enforcement of this Agreement, upon the occurrence and during the continuation of an Event of
Default, the Collateral Agent shall be entitled to instruct Pledgor in writing to

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deliver the Pledged Receivables or any part thereof to the Secured Parties (directly or through
the Collateral Agent) at any place or places designated by the Collateral Agent and is hereby and
by means of the power of attorney referred to in Section 4.1 (iv) hereof, irrevocably and
irreversibly entitled to dispose of, collect, receive and/or realize upon the Pledged Receivables
(or any part thereof), and forthwith sell or assign, give option or options to purchase or
otherwise dispose of the Pledged Receivables or any part thereof, at such price and upon such
terms and conditions as it may deem appropriate, which shall be compatible with the conditions for
the negotiation in equivalent conditions in an extra-judicial sale to be executed by the
Collateral Agent, which conditions are hereby accepted, as of the date hereof, by the Parties as
sufficient for the validity and effectiveness of such extra-judicial sale, in accordance with the
provisions set forth in Article 1,433, Item IV and Article 1,435, Item V of the Brazilian Civil
Code, and apply the proceeds thus received for payment of the Secured Obligations. Any notice
given by the Collateral Agent that an Event of Default has occurred and is continuing or has
ceased shall be conclusive as against Pledgor and all other third Parties, absent manifest error.
Without limitation of other rights, upon the occurrence and during the continuation of an Event of
Default, the Collateral Agent shall be entitled to instruct any third Parties to make payments
required by such Pledged Receivables directly to the Secured Parties or the Collateral Agent, as
instructed by the Collateral Agent, to be applied for the payment of the Secured Obligations as
provided in the Term Loan Credit Agreement, undertaking to return to Pledgor any amounts in excess
of the Secured Obligations.

Section Seven - Term

7.1. This Agreement shall remain in effect as of the date hereof and until the actual,
irrevocable and full compliance of all Secured Obligations, existing under the terms of the Term
Loan Credit Agreement.

Section Eight - Application of Proceeds of the Sale of the Pledged Receivables

8.1. Any moneys received by the Collateral Agent pursuant to this Agreement shall after
foreclosure of the pledge of the Pledged Receivables be applied, totally and as soon as
practicable, by the Collateral Agent, in or towards payment of the Secured Obligations in
accordance with the terms of the Term Loan Credit Agreement and the Intercreditor Agreement (as
defined below), but without prejudice to the right of the Collateral Agent to recover any
shortfall on the payments of the Secured Obligations from Pledgor. Once the Secured Obligations
are paid in full, the Collateral Agent hereby undertake to return all and any excess of the
moneys obtained by the foreclosure of the pledge of the Pledged Receivables to Pledgor.

Section Nine - Further Assurances

9.1. Pledgor will, from time to time, at its sole cost and expense, do, execute, acknowledge and
deliver all such further acts, deeds, assignments, notices of assignment and transfers (Including
as the Collateral Agent shall from time to time request), which may be necessary in the reasonable
judgment of the Collateral Agent from time to time to assure, perfect, convey, assign and transfer
to the Collateral Agent the rights conveyed or assigned hereunder. All costs and expenses in
connection with the grant or continuation of any security interests hereunder, including legal fees
and other costs and expenses in connection with the grant, registration, perfection, maintenance or
continuation of any security interests hereunder or the preparation, execution, delivery,
recordation or filing of documents and any other acts (including as Security Parties may reasonably
request) which may be necessary in connection with the grant, registration, perfection, maintenance
or

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continuation of such security interests, shall be paid by Pledgor promptly upon demand. Pledgor
will not enter into or become subject to any agreement which would impair its ability to comply,
or which would purport to prohibit it from complying, with the provisions hereof, such agreement
being considered ineffective to the Collateral Agent.

Section Ten - Collateral Agent Consent

10.1. It is understood that, as long as the amounts due under the Term Loan Credit Agreement are
not fully repaid, Pledgor shall not, directly or indirectly, issue, sell, transfer, assign, pledge
or otherwise encumber any of the Pledged Receivables, or grant any options or rights with respect
to the Pledged Receivables, except for (i) liens on such Pledged Receivables; (ii) other ownership
interests created pursuant to the terms of the Loan Documents and for transfers and assignments
permitted thereunder; and (iii) those created under the Receivables Pledge Agreement entered into
by and between LASALLE Business Credit, LLC, as collateral agent, and Novelis do Brasil Ltda., as
of the same date hereof.

Section Eleven - Amendments, etc. with Respect to the Secured Obligations

11.1. Pledgor shall remain obligated hereunder, and the Pledged Receivables shall remain subject to
the security interests granted hereby, at all times until termination of this Agreement pursuant to
Section 7 hereof, notwithstanding that, and without limitation and without any reservation of
rights against Pledgor, and without notice to Pledgor;

(a) the liability of Pledgor and/or any other third party upon or for any part of the Secured
Obligations, or any security or guarantee therefor or right of setoff with respect thereto, is,
from time to time, in whole or in part, renewed, extended, increased, amended, modified,
accelerated, compromised, waived, surrendered, or released by the Collateral Agent;

(b) the Term Loan Credit Agreement is modified, assigned or supplemented, in whole or in part, in
accordance with the terms of such agreement; and

(c) any guaranty, right to setoff or other security at any time held by the Collateral Agent for
the payment of the Secured Obligations is sold, exchanged, waived, surrendered or released.

11.2. For the purposes of Articles 360, 361 and 364 of the Brazilian Civil Code, any assignment
under the Term Loan Credit Agreement (provided such assignment is in accordance with the Term
Loan Credit Agreement) does not constitute a new obligation of Pledgor, and any assignee will
become a Secured Party hereunder and shall be entitled to and have the same rights as the initial
Secured Parties, hereby represented by Collateral Agent, to any and all Pledged Receivables.

Section Twelve - Waiver and Amendments

12.1. No course of dealing between Pledgor and the Collateral Agent, nor any failure to exercise,
nor any delay in exercising, on the part of any Secured Party any right, power or privilege
hereunder or under the Term Loan Credit Agreement shall operate as a waiver thereof; nor shall any
single or partial exercise of any right, power or privilege hereunder or thereunder preclude any
other or further exercise thereof or the exercise of any other right, power or privilege.

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12.2. Notwithstanding any provisions of this Agreement, no amendment of any provision of this
Agreement (including any waiver or consent relating thereto) shall be effective unless the same
shall have been consented to and signed by all parties hereto.

Section Thirteen - Rights and Remedies of the Collateral Agent

13.1. The rights and remedies provided herein, in the Term Loan Credit Agreement, and in the Loan
Documents are cumulative and are in addition to, and not exclusive of, any rights or remedies
provided by law including, without limitation, the rights and remedies of the Collateral Agent
under Brazilian Law.

13.2. The pledge hereunder constitutes a non-exclusive collateral security for the
compliance by the Borrowers with its payment obligations under the Term Loan Credit Agreement, the
institution of this pledge does not preclude the institution of any other collateral securities in
the benefit of the Collateral Agent pursuant to the Term Loan Credit Agreement.

Section Fourteen - Severability

14.1 The provisions of this Agreement are several, and if any Section or provision shall be held
invalid or unenforceable in whole or in part in any jurisdiction, then such invalidity or
unenforceability shall affect only such Section or provision or part thereof in such jurisdiction
and shall not in any manner affect such Section or provision in any other jurisdiction, or any
other Section or provision in this Agreement in any jurisdiction.

Section Fifteen - Complete Agreement: Successors and Assignees

15.1. This Agreement is intended by the Parties as the final expression of their agreement
regarding the subject matter hereof and as a complete and exclusive statement of the terms and
conditions of such agreement. This Agreement shall be binding upon and inure to the benefit of the
Parties hereto and their respective successors and permitted assignees.

15.2. Pledgor may not assign nor transfer all or part of its rights or obligations hereunder,
except with the prior written consent of Collateral Agent.

Section Sixteen - Effectiveness

16.1. To the extent permitted by applicable law, this Agreement shall continue to be effective,
or be reinstated, as the case may be, if at any time payment, or any part thereof, of any of the
Secured Obligations is rescinded or must otherwise be restored or returned by the Collateral
Agent upon the insolvency, bankruptcy, dissolution, liquidation or reorganization of Pledgor, or
upon or as a result of the appointment of a receiver, intervener or conservator of, or trustee or
similar officer for Pledgor or any substantial part of its property, or otherwise, all as though
such payments had not been made.

Section Seventeen - Pursuit of Rights and Remedies against Pledgor and Further Action

17.1. The Institution by Collateral Agent of any action or proceeding to enforce the pledge
hereunder shall not affect or diminish the rights of the Collateral Agent to institute any

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action or proceeding against Pledgor, including an action for specific performance in the event
of non-compliance on the part of Pledgor of any of its obligations under this Agreement.

Section Eighteen - Notices

18.1. Any and all notices or any other communications required or allowed under this Agreement
shall be in writing, by means of hand delivery, facsimile, courier, or registered letter, with
return receipt requested, pre-paid postage, addressed to the relevant Party who receives them at
his/her respective addresses as provided below, or to any other address as such Party may provide
to the others by means of a notice. Notices to Collateral Agent shall be in English.

(a) to Pledgor:

NOVELIS DO BRASIL LTDA.

Avenida das Nações Unidas, 12.551 – 15th floor

Torre Empresarial World Trade Center

São Paulo            S.P. Brasil

04578-000

Telefax: 55 11 5503-0714

Attention: Alexandre Moreira Martins de Almeida

(b) to the Collateral Agent:

UBS AG, STAMFORD BRANCH

677 Washington Blvd.
 Stamford, CT 068901

Tel: 203-719-5609 

Fax: 203-719-3888

Marie.Haddad@ubs.com

Registration Number: CH-270.3.004.646-4 (Commercial Registers of Canton Zurich and Canton
Basle-City)

Each Party undertakes to notify the other Parties of any change of address.

18.2. Any and all notices, directions and communications under this Agreement shall be deemed to
have been given upon when delivered in person or otherwise upon receipt thereof (as evidenced by
a receipt signed by the addressee or, in case of facsimile or mail delivery, by the transmission
report or return receipt).

Section Nineteen - Indemnity and Expenses

19.1. Pledgor agrees to indemnify the Collateral Agent and its officers,
directors, employees, advisors and affiliates (the “Indemnified Parties”) on demand from
and against any and all claims, losses, liabilities, costs, and expenses (including
without limitation, registration and legal fees and expenses) in any way relating to, growing out
of or resulting from a breach of this Agreement and the transactions contemplated hereby
(including, without limitation, from enforcement of this Agreement), except to the extent such
claims, losses, liabilities, costs or expenses result solely from such Indemnified Party’s gross
negligence or willful misconduct as finally determined by a court of competent jurisdiction.

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19.2. Pledgor shall pay to Collateral Agent upon demand the amount of any and all costs and
expenses, including the fees and reasonable expenses of its counsel and of any experts and agents,
that Collateral Agent may incur in connection with (i) the collection from the Pledged Receivables,
or (ii) the exercise or enforcement of any of its rights hereunder.

19.3. Taxes and Other Taxes (as these terms are defined in the Term Loan Credit Agreement),
charges, costs, and expenses (including legal fees and notarial fees), including withholding taxes,
relating to, resulting from, or otherwise connected with, the Pledge, this Agreement, the
execution, amendment and/or the enforcement of this Agreement, on whomsoever imposed, shall be
borne and paid exclusively by the Pledgor. If this Agreement is enforced, the Pledgor shall make
such additional payments to the Collateral Agent so that the Collateral Agent is put in the same
net-after tax position that the Collateral Agent would have obtained absent the enforcement of this
Agreement.

19.4. If the Pledgor makes a payment hereunder that is subject to withholding tax, the Pledgor
shall increase the amount of such payment such that, after deduction and payment of all such
withholding taxes, the payee receives an amount equal to the amount it would have received if no
such withholding had been imposed; provided, that the relevant persons provide such forms,
certificates and documentation that the Collateral Agent is legally entitled to furnish and would
be required to reduce or eliminate withholding and, with respect to non-U.S. withholding taxes,
would not, in the Collateral Agent’s judgment, subject it to any material unreimbursed costs or
otherwise be disadvantageous to it in any material respect.

19.5. The obligations of Pledgor in this Section 19 shall survive the termination of this Agreement
and the discharge of Pledgor’s obligations under this Agreement.

Section Twenty - No Duty on Collateral Agent’s Part

20.1. The powers conferred on the Collateral Agent hereunder are solely to protect the Collateral
Agent’s interests in the Pledged Receivables and shall not impose any duty upon the Collateral
Agent to exercise any such powers. The Collateral Agent shall be accountable only for amounts
that it actually receives as a result of the exercise of such powers, and neither the Collateral
Agent nor any of its officers, directors, employees or agents shall be responsible to Pledgor for
any act or failure to act hereunder except to the extent otherwise provided in the Loan Documents
or under Brazilian Law.

Section Twenty One - Intercreditor Agreement

21.1. Notwithstanding anything herein to the contrary, the lien and security interest granted
to the Collateral Agent, for the benefit of the Secured Parties, pursuant to this Agreement and the
exercise of any right or remedy by the Collateral Agent hereunder are subject to the provisions of
the intercreditor agreement, dated as of July 6, 2007 (as amended, restated, amended and restated,
supplemented or otherwise modified from time to time, the “Intercreditor Agreement”),
among NOVELIS INC., a corporation formed under the Canada Business Corporations Act, NOVELIS
CORPORATION, a Texas corporation NOVELIS PAE CORPORATION, a Delaware corporation, NOVELIS FINANCES
USA LLC, a Delaware limited liability company, NOVELIS SOUTH AMERICA HOLDINGS LLC, A Delaware
limited liability company, ALUMINUM UPSTREAM HOLDINGS LLC, a Delaware limited liability company,
NOVELIS UK LIMITED, a limited liability company incorporated under the laws of England and
Wales with registered number 00279596, and NOVELIS AG, a stock corporation (AG)
organized under the laws of Switzerland, AV ALUMINUM INC., a

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corporation
formed under the Canada Business Corporations Act (“Holdings”), the subsidiaries of
Holdings from time to time party thereto, ABN AMRO BANK N.V., as administrative agent for the
Revolving Credit Lenders (as defined in the Intercreditor Agreement), LASALLE BUSINESS CREDIT,
LLC, as collateral agent for the Revolving Credit Claimholders (as defined in the Intercreditor
Agreement) and as funding agent, ABM AMRO BANK N.V., acting through its Canadian Branch, as
Canadian administrative agent for the Revolving Credit Lenders and as Canadian funding agent, UBS
AG, STAMFORD BRANCH, as administrative agent for the Term Loan Lenders (as defined in the
Intercreditor Agreement), and as collateral agent for the Term Loan
Claimholders (as defined in
the Intercreditor Agreement) and certain other persons which may be or become parties thereto or
become bound thereto from time to time. IN THE EVENT OF ANY CONFLICT OR INCONSISTENCY BETWEEN THE
PROVISIONS OF THE INTERCREDITOR AGREEMENT AND THIS AGREEMENT, THE PROVISIONS OF THE INTERCREDITOR
AGREEMENT SHALL GOVERN AND CONTROL.

Section Twenty
Two - Language

21.1. This Agreement is being executed solely in the English language. Pledgor shall, at its own
expense, arrange for this Agreement to be sworn public translated into Portuguese by a sworn
public translator.

Section Twenty
Three - Specific Performance

22.1. The Parties agree and acknowledge that this Agreement constitutes a “título executive
extrajudicial” pursuant to Article 585, item III of the Brazilian Code of Civil Procedure and
grants to each Party the right to seek specific performance in accordance with the applicable
provisions of the Brazilian Code of Civil Procedure, including, without limitation, Articles 461,
632 and 466-B without prejudice to any other rights or remedies available to the Collateral Agent
under applicable law

Section Twenty
Three - Governing Law and Jurisdiction

23.1. This Agreement shall be governed by and construed and interpreted in accordance with the
laws of the Federative Republic of Brazil. The Parties elect the
courts of the City of São Paulo,
State of São Paulo, Brazil as the competent courts to settle any issues arising out of this
Agreement.

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EXHIBIT 1

LIST OF RECEIVABLES

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EXHIBIT 2

LIST OF BANK ACCOUNTS

	 	 	 	 	 	 	 
	 	 	TYPE OF	 	BANK OR	 	 
	OWNER	 	ACCOUNT	 	INTERMEDIARY	 	ACCOUNT NUMBERS
	Novelis do Brasil Ltda.

	 	Deposit Account
	 	Banco Brasil
	 	1011-1 
	Novelis do Brasil Ltda.

	 	Deposit Account
	 	Bradesco
	 	60032-.6 
	Novelis do Brasil Ltda.

	 	Deposit Account
	 	Bradesco
	 	175512-9 
	Novelis do Brasil Ltda.

	 	Deposit Account
	 	Itau S/A
	 	12-2 
	Novelis do Brasil Ltda.

	 	Deposit Account
	 	Safra
	 	1751-9 
	Novelis do Brasil Ltda.

	 	Deposit Account
	 	Calxa
	 	230-0 
	Novelis do Brasil Ltda.

	 	Deposit Account
	 	Citibank
	 	396 
	Novelis do Brasil Ltda.

	 	Deposit Account
	 	Citibank
	 	99705079 
	Novelis do Brasil Ltda.

	 	Deposit Account
	 	ABN Amro
	 	3703618 
	Novelis do Brasil Ltda.

	 	Deposit Account
	 	Unlbanco AIG
	 	55 19 60200 501/502/510 
	Novelis do Brasil Ltda.

	 	Deposit Account
	 	Banco Brasil
	 	15999-9 
	Novelis do Brasil Ltda.

	 	Deposit Account
	 	Banco Real
	 	8707432-5 
	Novelis do Brasil Ltda.

	 	Deposit Account
	 	Bradesco
	 	73076-9 
	Novelis do Brasil Ltda.

	 	Deposit Account
	 	Bradesco
	 	3863-6 

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EXHIBIT 3

FORM OF POWER OF ATTORNEY

NOVELIS DO BRASIL LTDA., a Brazilian limited liability company, with its principal place of
business in the City of São Paulo, State of São Paulo, at
Avenida das Nações Unidas, 12.551,
15th floor, enrolled with the Taxpayers’ Registry of the Ministry of Finance (CNPJ/MF)
under No. 60.561.800/0001-03, herein duly represented by its undersigned legal representatives
(“Grantor”), hereby irrevocably constitutes and appoints UBS AG, STAMFORD BRANCH, a financial
institution, having its office at 677 Washington Boulevard, Stamford, Connecticut, 06901, in its
capacity as collateral agent on behalf of the Secured Parties under the Term Loan Credit
Agreement (as defined below), hereby represented by its undersigned attorney-in-fact (hereinafter
referred to “Collateral Agent”) as its Attorney-in-fact, to act in its name and place, to the
fullest extent permitted by law, to do and perform all and every act whatsoever necessary, in
connection with the Receivables Pledge Agreement, dated as of July 6, 2007 (as amended from time
to time the “Receivables Pledge Agreement”), and pursuant to the terms of such Receivables Pledge
Agreement, including without limitation:

(a) to execute, deliver and perfect all documents and do all things which the Attorney-in Fact may
consider to be required or desirable for (a) carrying out any obligations imposed on Pledgor by the
Receivables Pledge Agreement (including the execution and delivery of any notices, deeds, charges,
arrangements or other security and any transfers of the Pledged Receivables), and (b) enabling the
Attorney-in-Fact to exercise, or delegate the exercise of, any of the rights, powers and
authorities conferred on them by or pursuant to the Receivables Pledge Agreement or by law
(including, after the occurrence of an Event of Default, the exercise of any right of a legal or
beneficial owner of the Pledged Receivables);

(b) upon the occurrence of an Event of Default, to dispose of, collect, receive,
appropriate, withdraw, transfer and/or realise upon the Pledged Receivables (or any part thereof)
and forthwith apply the enforcement proceeds for the payment of the Secured Obligations in
accordance with Article 1459 of the Brazilian Civil Code, being
vested with all necessary powers
incidental thereto, including, without limitation, to purchase foreign currency and make all
remittances abroad, to sign any necessary foreign exchange contract with financial institutions in
Brazil that may be required to make such remittances and to represent Pledgor before the Central
Bank of Brazil and any other Brazilian governmental authority when necessary to accomplish the
purposes of the Receivables Pledge Agreement;

(c) upon the occurrence of an Event of Default, to take all necessary actions and to execute any
instrument before any governmental authority in the case of a public sale of the Pledged
Receivables in accordance with the terms and conditions set out therein; and

(d) upon the occurrence of an Event of Default, to take any action and to execute any instrument
consistent with the terms of the Receivables Pledge Agreement as it may deem necessary or advisable
to accomplish the purposes of the Receivables Pledge Agreement.

This power of attorney is effective as of the date hereof, provided that the powers to use all or
part of the Pledged Receivables shall only become effective upon the occurrence and the
continuation of an Event of Default.

Capitalized terms used, but not defined herein, shall have the meaning attributed to them in the
Receivables Pledge Agreement.

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The powers granted herein are in addition to the powers granted by Pledgor to Attorney-in-Fact in
the Receivables Pledge Agreement and do not cancel or revoke any of such powers.

This power of attorney is granted as a condition to the Receivables Pledge Agreement and as a
means to comply with the obligations set forth therein, in accordance with Article 684 of the
Brazilian Civil Code.

This power of attorney shall remain valid until the Receivables Pledge Agreement is terminated in
accordance with its terms.

São Paulo, July 6, 2007

	 	 	 	 	 
	 	NOVELIS DO BRASIL LTDA.

 	 
	 	
 	 
	 	Name:          NOVELIS DO BRASIL 	 
	 	Title: 	Antonio Tadeu Coelho Nardocci

Presidente 	 
	 
	 	 	 
	 	
 	 
	 	Name:  	Alexandre M. Almeida 	 
	 	Title:           Diretor
Financelro 
e de Serviços Corporativos 	 
	 

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SCHEDULE 2.2

BASIC TERMS OF SECURED OBLIGATIONS

For the purposes of Article 1,424 of the Brazilian Civil Code, the Secured Obligations are:

1. Term Loan Facilities

a) Principal Amount

Up to US$ 1,360,000,000.00 (one billion and three hundred and sixty million United States
Dollars).

b) Termination

Seven years from the date hereof.

c)
Interest

At the Borrowers’ option, loans will bear interest based on the Alternate Base Rate or Adjusted
LIBOR Rate, each plus the Applicable Margin, as described below (except that all swingline
borrowings will accrue interest based on the Base Rate):

A. Alternate Base Rate Option

Interest will be at the Alternate Base Rate plus the applicable Interest Margin, calculated on
the basis of the actual number of days elapsed in a year of 365 days and payable quarterly in
arrears. The Alternate Base Rate is defined as the higher of the Federal Funds Rate, as published
by the Federal Reserve Bank of New York, plus 1/2 of 1% and the Base Rate of UBS AG, as
established from time to time at its Stamford Branch.

Alternate Base Rate borrowings will be in minimum amounts to be agreed upon and (other than
swingline borrowings) will require same day notice by 9:00 am CST.

B. Adjusted LIBOR Option

Interest will be determined for periods to be selected by the Borrowers (“Interest Periods’”) of
one, two, three or six months and will be at an annual rate equal to the London Interbank Offered
Rate (“ LIBOR”) for the corresponding deposits of
Dollars, plus the Applicable Margin (provided
that Interest Periods shall be no more than one month until the earlier of (x) the successful
syndication of the Term Loan Facilities (as determined by the Arrangers) and (y) the date that is
three months following the Financing Closing Date). LIBOR will be determined by the Term Loan
Administrative Agent at the start of each Interest Period and will be fixed through such period.
Interest will be paid at the end of each Interest Period or, in the case of Interest Periods
longer than three months, quarterly, and will be calculated on the basis of the actual number of
days elapsed in a year of 360 days. LIBOR will be adjusted for maximum statutory reserve
requirements (if any).

LIBOR borrowings will require three business days’ prior notice and will be in minimum amounts to
be agreed upon.

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SCHEDULE 2.4

FORM OF NOTICE

[Pledgor’s letterhead]

[***DATE***]

To

[Name of Bank]

Ref.: Receivables Pledge Agreement (the “Receivables Pledge Agreement”), dated July 6, 2007,
entered into by and among Novelis do Brasil, a Brazilian limited liability company with its
principal place of business in the City of São Paulo, State of São Paulo, at Avenida das Nações
Unidas, 12.551, 15th floor, enrolled with the Taxpayers’ Registry of the Ministry of
Finance (CNPJ/MF) under No. 60.561.800/0001-03 (“Novelis do Brasil”), and UBS AG, STAMFORD BRANCH,
a financial institution, having its office at 677 Washington Boulevard, Stamford, Connecticut,
06901, (hereInafter referred to as “UBS AG” or “Collateral Agent”).

Dear Sirs:

          Please be advised that, pursuant to the Receivables Pledge Agreement referenced above, all of
our receivables, due and payable, and all credit rights derived from the credit instruments
(Duplicatas) issued by us in the normal course of our business, which receivables and credit
rights are collected at out bank account No. [.], have been pledged, as set forth in the
Receivables Pledge Agreement, in favor of the Collateral Agent.

          Novelis do Brasil hereby irrevocably instructs you as follows: following the occurrence of an
Event of Default, which is continuing, unremedied and unwalved under the Term Loan Credit
Agreement, as shall be informed to you by a conclusive and written notice of the Collateral Agent
(Irrespective of any notice to the contrary from Novelis do Brasil), you shall immediately act in
accordance with instructions received from the Collateral Agent with respect to the amounts due by
you to Novelis do Brasil (irrespective of any notice to the contrary from Novelis do Brasil).

The instructions contained herein may not be revoked, amended or modified without the prior
written consent of the Collateral Agent.

Capitalized terms used, but not defined herein, shall have the meaning attributed to them in the
Receivables Pledge Agreement.

Very truly yours,

	 	 	 	 	 
	 	Novelis do Brasil Ltda.

 	 
	 	
 	 
	 	Name:           NOVELIS DO BRASIL 	 
	 	Title:  	Antonio Tadeu Coelho Nardocci

Presidente 	 
	 
	 	 	 
	 	
 	 
	 	Name:  	Alexandre M. Almeida 	 
	 	Title:           Diretor Financelro 
          e de Serviços Corporativos 	 
	 

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EQUIPMENT AND INVENTORY PLEDGE AGREEMENT

This
Equipment and Inventory Pledge Agreement (the
“Agreement”) is made by and among:

(a)
NOVELIS DO BRASIL LTDA., a Brazilian limited liability company, with its principal place
of business in the City of São Paulo, State of São Paulo, at Avenida das Nações Unidas,
12.551, 15th floor, enrolled with the Taxpayers’ Registry of the Ministry of
Finance (CNPJ/MF) under No. 60.561.800/0001-03, hereby represented in accordance with
its articles of association, by its undersigned legal representatives (hereinafter
referred to as the “Pledgor” or “Novelis do Brasil”); and

(b) UBS AG, STAMFORD BRANCH, a financial institution, having its office at 677 Washington
Boulevard, Stamford, Connecticut, 06901, in its capacity as collateral agent on behalf of the
Secured Parties under the Term Loan Credit Agreement (as defined below), hereby represented
by Its undersigned attorney-in-fact (hereinafter referred to as “UBS AG” or “Collateral
Agent”).

The
Pledgor and the Collateral Agent are hereinafter jointly referred to
as the “Parties”.

     WHEREAS, Novelis Inc., a corporation formed under the Canada Business Corporations Act (the
“Canadian Borrower”), Noveli’s Corporation, a Texas corporation (the “US Borrower”, and with
Canadian Borrower, the “Borrowers”), AV Aluminum Inc., a corporation formed under the Canada
Business Corporations Act, the Subsidiary Guarantors, the Lenders, UBS AG Stamford Branch as
administrative agent (in such capacity, “Administrative Agent”) for the Lenders, UBS AG, Stamford
Branch, as collateral agent (in such capacity, “Collateral Agent”) for the Secured Parties, the
other agents party thereto, and ABN Amro Incorporated and UBS Securities LLC, as joint lead
arrangers and joint bookmanagers (In such capacities, “Arrangers”), have entered into a certain
term loan credit agreement dated as of July 6, 2007 (as amended, restated, supplemented or
otherwise modified, the “Term Loan Credit Agreement”);

     WHEREAS, the Borrowers have requested the Lenders to extend credits in form of Term Loans on
the Closing Date in an aggregate principal amount not in excess of the Dollar Equivalent of US$
960,000,000.00 (Nine Hundred Sixty Million United States Dollars), consisting of (i) U.S. Term
Loans in an aggregate principal amount not in excess of US$ 660,000,000.00 (Six Hundred Sixty
Million United States Dollars) and (ii) Canadian Term Loans in an aggregate principal amount not
in excess of the Dollar Equivalent of US$ 300,000,000.00 (Three Hundred Million United States
Dollars) (“Term Loan Facilities”);

     WHEREAS, it is a condition precedent to the obligation of the Lenders and the issuers to make
their respective extensions of credit to the Borrowers under the Term Loan Credit Agreement, that
the Pledgor shall have executed and delivered this Agreement to the Collateral Agent;

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     NOW, THEREFORE, in consideration of the premises and to induce the Lenders, the issuers and
the Collateral Agent to enter into the Term Loan Credit Agreement, and to induce the lenders and
the issuers to make their respective extensions of credit to the Borrowers thereunder, the
Pledgor hereby agrees with the Collateral Agent as follows:

     1. Definitions.

     (a) Capitalized terms not defined in this Agreement shall have the same meaning given to such
terms in the Term Loan Credit Agreement, unless a contrary indication appears.

     (b) Any references to the Collateral Agent in this Agreement shall be construed as references
to the Collateral Agent acting on behalf of the Secured Parties.

     (c) Any references to a Person in this Agreement shall include its successors and assigns.

     (d) Any references to a document is a reference to that document as amended, restated, novated
and/or supplemented through the time such reference becomes effective.

     (e) All references to sections and exhibits in this Agreement are references to sections and
exhibits of this Agreement, except if expressly stated otherwise.

     2. Grant of Security Interest. In order to secure (a) the Obligations, (b) the due and
punctual payment and performance of all obligations of Borrowers and the other Loan Parties under
each Hedging Agreement entered into with any counterparty that is a Secured Party, and (c) all
obligations of every nature now or hereafter existing under this Agreement (the “Secured
Obligations”), Pledgor hereby pledges to the Collateral Agent on behalf of the Secured Parties all
its fixed assets and all Inventory located in all locations set forth in Exhibit 1 hereto (“Places
of Business”). The fixed assets and Inventory are duly described and identified in Exhibit
2 hereto (collectively the “Pledged Assets”). For the purposes of Article 1,424 of the
Brazilian Civil Code, the basic terms of Secured Obligations are duly described in Exhibit 3
hereto.

     3. Restriction on Transfers and Encumbrances. Except in accordance with the terms and
conditions of the Term Loan Credit Agreement, the Pledged Assets may not be assigned, sold or in
any other way transferred by Pledgor or by any other means whatsoever become subject to any liens
or encumbrances, until complete performance of the Secured Obligations, pursuant
to Section 13 below. Notwithstanding, the Collateral Agent on behalf of the Secured Parties
may release any Pledged Assets if so requested by Pledgor, for purposes of allowing the latter to
effect an asset sale permitted under the Term Loan Credit Agreement, with due observance of the
provisions contained therein. All expenses related to such release shall be borne by Pledgor.

     4. Registration of the Pledge of the Pledged Assets. Pledgor shall, within 20 (twenty)
days after the execution of this Agreement or any amendment hereto (as defined below) entered into
as provided for under Section 14, register this Agreement

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and any amendments hereto with the competent Registries of Real Estate of the Cities where the
Pledged Assets are located (Cartórios de Registro de Imóveis) and deliver to the Collateral Agent
evidence of such registrations. Pledgor shall pay all expenses incurred in connection with such
registrations.

     5. Representations and Warranties. Pledgor hereby represents and warrants to the
Collateral Agent on behalf of the Secured Parties, as representative of the Secured Parties, that
on the date hereof:

          (a) the security Interest created hereby will, upon completion of the registrations required
by Section 4 hereof, constitute, subject to the Intercreditor Agreement, a first priority,
legal, valid and effective security interest against any third parties on the Pledged Assets,
enforceable in accordance with its terms and conditions, except as enforcement may be limited by
bankruptcy, insolvency, reorganization, moratorium or other similar laws relating to creditors’
rights generally; provided, however, that any security interest to be created hereby on any
Pledged Asset which has not been acquired or received by Pledgor until the date hereof, shall be
deemed to have been created, perfected and to be in full force only (x) after such Pledged Asset is
acquired or received by Pledgor, and (y) on the date when the lien therein has been registered as
provided in Section 4 hereof;

          (b) the execution, performance and granting of the security interest created hereby have been
duly authorized by all necessary corporate actions on the part of Pledgor and do not (i)
violate any provision of any charter or other organizational documents of Pledgor, (ii)
conflict with, result in a breach of, or constitute (or, with the giving of notice or lapse of
time or both, would constitute) a default under, or, except for consents and approvals that have
been obtained and are in full force and effect, require the approval or consent of any person
pursuant to, any material contractual obligation of Pledgor, or violate any applicable law binding
on Piedgor, or (iii) result in the creation or imposition of any lien upon any asset of Pledgor or
any income or profits thereof, except for the lien created hereby in favour of the Collateral
Agent, as representative of the Secured Parties and the lien to secure the Revolving Credit
Obligations;

          (c) Pledgor is the legal owner of the Pledged Assets, which are free from any liens other than
(i) those contemplated herein; (ii) those created under the Equipment and Inventory Pledge
Agreement entered into by and between LASALLE Business Credit, LLC, as collateral agent, and
Novelis do Brasil Ltda., as of the same date hereof; (iii) liens eventually created by operation of
law or judicial proceedings in the future; and (iv) those created by judicial proceedings as listed
In Exhibit 6 hereto;

          (d) the Pledged Assets are within full disposition and control of Pledgor; and

          (e) except as contemplated herein or in the Term Loan Credit Agreement, Pledgor has
not sold or granted any preemptive rights or agreed to sell or grant any preemptive right or
otherwise disposed of or agreed to dispose of the benefit of all or any of its rights, title and
interest in and to all or any part of the Pledged Assets.

     6. Covenants. Pledgor covenants with Collateral Agent, as representative of the on
behalf of the Secured Parties, that until termination of this Agreement in accordance with
Section 13:

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          (a) it shall, each and every six (6) month period, until termination of this Agreement, (the
first six month period counting from the date hereof), enter into an amendment to this Agreement in
order to extend the pledge created hereunder to any equipment, inventory, spare parts, supplies or
other tangible personal property (the “Additional Assets”), acquired by the Pledgor during such six
(6) months period, such amendment to this Agreement substantially in the form of Exhibit 5
hereto (“Amendment”) (which shall then be subject to all terms and conditions provided herein),
provided, however, that such pledge over the inventory and supplies do not impair the regular
operations of Pledgor. Pledgor shall provide the Collateral Agent with evidence of the registration
of each such Amendment with the appropriate Registries of Real Estate in Brazil (Cartórios de
Registro de Imóveis) within 10 (ten) business days after the effective registration of such
Amendment. Pledgor shall pay all expenses incurred in connection with such registrations;

          (b) Pledgor will, at its sole cost and expense, make, execute, acknowledge and
deliver all such further acts, deeds, conveyances, agreements, assignments, notices of
assignment and additional transfers as the Collateral Agent on behalf of the Secured Parties shall
from time to time reasonably request, which may be necessary in the reasonable judgment of the
Collateral Agent on behalf of the Secured Parties to assure, perfect, assign or transfer to the
Collateral Agent on behalf of the Secured Parties the security interest and the rights created,
transferred or assigned hereunder. All reasonable costs and expenses in connection with the
granting and maintenance of the security interests hereunder, including reasonable legal fees and
other reasonable costs in connection with the grant, registration, perfection,
maintenance or continuity of the security interests hereunder or the preparation, execution or
registration of documents and any other acts which the Collateral Agent on behalf of the Secured
Parties may reasonably incur in connection with the granting, registration, perfection, maintenance
or continuity of such security interest, shall be paid by Pledgor promptly upon demand. Pledgor
will not, and will not permit any of its Subsidiaries to, without the prior approval of the
Collateral Agent on behalf of the Secured Parties, enter into any agreement which may impair their
ability to comply with, or which may prohibit them from complying with, the provisions hereof;

          (c) as a means of complying with the obligations set forth herein, it shall, on the date
hereof, execute and deliver irrevocably and irreversibly, as a condition precedent to this
Agreement, in accordance with Article 684 of the Brazilian Civil Code, to the Collateral Agent (as
representative of the Secured Parties), and to each successor as necessary, a power of attorney,
substantially in the form of Exhibit 4 hereto, to ensure that the Collateral Agent or such
successor has all powers to carry out the acts and rights specified herein, and shall maintain such
power of attorney in full force and effect until the full payment of the Secured Obligations; and

          (d) it shall, upon the occurrence and continuation of an Event of Default, as may be evidenced
by written notice from the Collateral Agent to Pledgor (irrespective of any notice to the contrary
by any other third party), comply with all written instructions received by it from the Collateral
Agent in connection with the exercise by the Collateral Agent of the remedies set forth in
Section 8 hereof.

     7. Records and Inspection. Pledgor shall cause to be kept accurate and complete
records of the Pledged Assets at its headquarters. Pursuant to the provision of Article 1,450 of
the Brazilian Civil Code, the Collateral Agent and its employees and agents shall have the right,
at all times during Pledgor’s normal business hours and

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after delivery of a 5-day prior written notification to Pledgor, to (a) inspect and verify the
quality, quantity, value and condition of, or any other matter relating to the Pledged Assets, (b)
inspect all records relating thereto and to make (or require Pledgor to provide) copies of such
records, and (c) enter all premises in which any of the Pledged Assets are located. In the case of
Pledged Assets which are in the possession of a third party, the Collateral Agent may, after
delivery of a 5-day prior written notification, during the existence of an Event of Default,
contact such third party for the purpose of making any such inspection and verification.

     8. Rights and Powers of the Collateral Agent Upon an Event of Default: Remedies.
Without prejudice to any of the foregoing provisions and the possibility of judicial enforcement
of this Agreement, upon the occurrence and during the continuation of an Event of
Default, the Collateral Agent shall be entitled to Instruct Pledgor in writing to deliver the
Pledged Assets or any part thereof to the Secured Parties (directly or through the Collateral
Agent) at any place or places designated by the Collateral Agent and is hereby and by means of the
power of attorney referred to in Section 6(c) hereof, irrevocably and irreversibly entitled
to dispose of, collect, receive and/or realize upon the Pledged Assets (or any part thereof), and
forthwith sell or assign, give option or options to purchase or otherwise dispose of the Pledged
Assets or any part thereof, at such price and upon such terms and conditions as it may deem
appropriate, which shall be compatible with the conditions for the negotiation in equivalent
conditions in an extra-judicial sale to be executed by the Collateral Agent, which conditions are
hereby accepted, as of the date hereof, by the Parties as sufficient for the validity and
effectiveness of such extra-judicial sale, in accordance with the provisions set forth in Article
1,433, Item IV and Article 1,435, Item V of the Brazilian Civil Code, and apply the proceeds thus
received for payment of the Secured Obligations. Any notice given by the Collateral Agent that an
Event of Default has occurred and is continuing or has ceased shall be conclusive as against
Pledgor and all other third Parties, absent manifest error. Without limitation of other rights,
upon the occurrence and during the continuation of an Event of Default, the Collateral Agent shall
be entitled to instruct any third Parties to make payments required by such Pledged Assets directly
to the Secured Parties or the Collateral Agent, as instructed by the Collateral Agent, to be
applied for the payment of the Secured Obligations as provided in the Term Loan Credit Agreement,
undertaking to return to Pledgor any amounts in excess of the Secured Obligations.

     9. Use of Proceeds. Any amounts received by the Secured Parties (directly or through
the Collateral Agent) pursuant to this Agreement and/or under the powers hereby conferred shall,
after an Event of Default, be applied by the Collateral Agent as representative of the Secured
Parties for payment of the Secured Obligations in accordance with the terms of the Term Loan
Credit Agreement and the Intercreditor Agreement (as defined below), but without prejudice to the
right of any secured party to recover any shortfall from Collateral Agent, and in any case, any
amounts in excess of the Secured Obligations shall return to Pledgor.

     10. Amendments with Respect to the Secured Obligations. Pledgor shall remain
obligated hereunder, and the Pledged Assets shall remain subject to the pledge granted hereby, at
all times until termination of this Agreement pursuant to Section 13 hereof, irrespective
of whether, and without limitation and without any reservation of rights against Pledgor, and
whether notice is given to Pledgor or not:

          (a) the liability of Pledgor or any other third party upon or for any
part of the Secured Obligations, or any security or guarantee or right of set-off with

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respect thereto is, from time to time, in whole or in part, renewed, extended, amended, modified,
accelerated, compromised, waived, surrendered or released by the Secured Parties;

          (b) the Term Loan Credit Agreement is amended, modified or supplemented, in
whole or in part, in accordance with the terms of such agreement; and

          (c) any guaranty or right of set-off at any time held by the Secured Parties (directly or
through the Collateral Agent) for the payment of the Secured Obligations are sold, exchanged,
waived, surrendered or released.

     11. No Obligation to Protect the Pledged Assets. Neither the Collateral Agent nor any
Secured Parties shall have any obligation towards Pledgor to protect, secure, perfect or insure
any other lien at any time held by them as security for the Secured Obligations or any property
subject thereto.

     12. Pursuit of Rights and Remedies Against Pledgor. When pursuing its rights and
remedies hereunder against Pledgor, the Collateral Agent on behalf of the Secured Parties may, but
shall be under no obligation to, pursue such rights and remedies as it may have against any third
party or against any guaranty of the Secured Obligations or any right of set-off with respect
thereto, and any failure by the Collateral Agent on behalf of the Secured Parties to pursue such
rights or remedies or to collect any payments from such third party or to realize upon any such
securities or guaranties or to exercise any such right of set-off, or any release of such third
Parties or of any such securities, guaranties or right of set-off, shall not relieve Pledgor of
any liability hereunder, and shall not impair or affect the rights and remedies, whether express,
implied or available as a matter of law, of the Collateral Agent or the Secured Parties.

     13. Termination and Release. When the Secured Obligations have been indefeasibly
satisfied in full and no other amount is then owing to any Secured Parties under the terms of the
Term Loan Credit Agreement, then, and only then, shall this Agreement and the security interests
and lien created hereby be released and this Agreement shall terminate, at Pledgor expense;
otherwise, this Agreement and the pledge created hereby shall remain in full force and effect.
No release of this Agreement or of the lien created and evidenced hereby shall be valid unless
executed by the Collateral Agent. Upon termination of this Agreement, the Collateral Agent shall,
at Pledgor’s request, at Pledgor’s expense and as prescribed in Section 14 or in compliance
with a sale of Pledged Assets permitted by this Agreement and the Term Loan Credit Agreement,
execute and/or enter into with Pledgor (and the Secured Parties herein grant to the Collateral
Agent the powers to accomplish it), all documents reasonably required to evidence the release and
the discharge of such guaranty.

     14. Waivers and Amendments. Notwithstanding any provisions of this
Agreement to the contrary, no amendment of any provision of this Agreement (including any waiver or
consent relating thereto) shall be effective unless it shall be made by means of a written and
signed consent by the Collateral Agent, acting on the instructions of the Secured Parties.

     15. Severability. If any provision of this Agreement shall be held to be invalid,
illegal or unenforceable under applicable law, such provision shall be ineffective only to the
extent of the invalidity, illegality or unenforceability of such provision, and shall not affect
any other provisions hereof.

6

 

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     16. Authority of the Collateral Agent. Pledgor acknowledges that the rights and
responsibilities of the Collateral Agent under this Agreement with respect to any action taken by
the Collateral Agent or the exercise or non-exercise by the Collateral Agent of any option,
request, judgment or other right or remedy provided for herein or resulting from this Agreement
shall, as between the Collateral Agent and the Secured Parties, be governed by the Term Loan
Credit Agreement, the Intercreditor Agreement (as defined below) and by other agreements with
respect thereto as may exist from time to time among them, but, as between the Collateral Agent
and Pledgor, the Collateral Agent shall be conclusively presumed to be acting as representative of
the Secured Parties, with full and valid authority so to act or refrain from acting, and Pledgor
shall be under no entitlement to make any inquiry with respect to such authority.

     17. Complete Agreement; Successors and Assigns. This Agreement is intended by the Parties as
the final expression of their agreement regarding the subject matter hereof and as a complete and
exclusive statement of the terms and conditions of such agreement. This Agreement shall be binding
upon the Parties hereto and their respective successors and permitted assigns, inuring to the
benefit of all of them. Pledgor may not
assign or transfer any of its rights or obligations under this Agreement. The Collateral
Agent may assign and transfer all of its rights and obligations hereunder to a replacement
Collateral Agent, appointed in accordance with the terms of the Term Loan Credit Agreement.
Upon such assignment and transfer taking effect, the replacement Collateral Agent shall be
deemed to be acting as representative of the Secured Parties, for the purposes of this
Agreement, in place of the former Collateral Agent, or both as the case may be.

     18. Assignment and/or Transfer of the Term Loan Credit Agreement. In the event of the
assignment, transfer and/or novation of the credits of the Secured Parties under the Term Loan
Credit Agreement, Pledgor shall remain obliged under the terms of this Agreement and the Pledged
Assets shall remain subject to the security interest hereby created in favor of the Secured
Parties, until the termination In full of this Agreement, in accordance with Section 13 and 14,
provided that it is notified of the assignment and/or transfer by the Collateral Agent. Pledgor
acknowledges and agrees that such notification will be under the terms, as the case may be, of the
requirements of the notification of Article 290 of the Brazilian Civil Code.

     19. Waiver of Immunity. To the extent that Pledgor has or hereafter may be entitled
to claim or may acquire, for itself or for any of the Pledged Assets, any immunity from suit,
jurisdiction of any court or from any legal process (whether through service of notice, attachment
prior to judgment, attachment in aid of execution, or otherwise), with respect to itself or its
properties, Pledgor hereby irrevocably waives such immunity in respect of its obligations
hereunder to the fullest extent permitted by applicable law.

     20. Governing Law; Jurisdiction. This Agreement shall be governed by and interpreted
in accordance with the laws of Federative Republic of Brazil. The Parties hereto irrevocably
submit to the jurisdiction of the courts sitting in the City of São Paulo, State of São Paulo,
Brazil, in any action or proceeding aimed at settling any dispute or controversy related to this
Agreement, and the parties hereto irrevocably agree that all claims in respect of such action or
proceeding may be heard and determined in such court.

     21. No Duty on Collateral Agent’s Part. The powers conferred on Collateral Agent
hereunder are solely to protect the Collateral Agent’s and the Secured Parties’

7

 

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interests in the Pledged Assets and shall not impose any duty on the
Collateral Agent to exercise such powers or on the Secured Parties to cause the Collateral Agent
to exercise any such powers. The Collateral Agent shall be accountable only for amounts that it
actually receives as a result of the exercise of such powers, and neither the Collateral Agent
nor any Secured Parties nor any of its respective directors, officers, employees or agents shall
be held responsible by Pledgor for any act or failure to act hereunder except to the extent
otherwise provided in the Term Loan Credit Agreement or under Brazilian Law.

     22. Notices. All notices and other communications under this Agreement shall be in
writing and shall be personally delivered, sent by prepaid courier, by registered mail with
postage prepaid or by facsimile, and shall be deemed given when received by the intended
recipient thereof, and shall be directed to the addresses indicated below, or to such other
address as may be notified by the relevant party to the other party in writing:

	 	(a)	 	to Pledgor:

NOVELIS DO BRASIL LTDA.

Avenida das Nações Unidas, 12.551 – 15th floor

Torre Empresarial World Trade Center

Sao Paulo            S.P. Brasil

04578-000

Telefax: 55 11 5503-0714

Attention: Alexandre Moreira Martins de Almeida

	 	(b)	 	to the Collateral Agent:

UBS LOAN FINANCE LLC

677 Washington Blvd. 
Stamford, CT 068901

Tel: 203-719-5609 
Fax: 203-719-3888

Marie.Haddad@ubs.com

Registration Number: CH-270.3.004.646-4 (Commercial Registers of Canton Zurich
and Canton Basle-City)

     23. Specific Performance. The Parties agree and acknowledge that this Agreement
constitutes a “título executivo extrajudicial” pursuant to Article 585, item III of the
Brazilian Code of Civil Procedure and grants to each Party the right to seek specific
performance in accordance with the applicable provisions of the Brazilian Code of Civil
Procedure, including, without limitation. Articles 461, 632 and 466-B without prejudice to any
other rights or remedies available to the Collateral Agent under applicable law.

     24. Intercreditor Agreement. Notwithstanding anything herein to the contrary, the lien and
security interest granted to the Collateral Agent, for the benefit of the Secured Parties, pursuant
to this Agreement and the exercise of any right or remedy by the Collateral Agent hereunder
are subject to the provisions of the intercreditor agreement, dated as of July 6, 2007
(as amended, restated, amended and restated, supplemented or otherwise modified from time
to time, the “Intercreditor Agreement”), among NOVELIS INC., a corporation formed under
the Canada Business Corporations Act, NOVELIS CORPORATION, a Texas corporation,
NOVELIS PAE

8

 

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CORPORATION, a Delaware corporation, NOVELIS FINANCES USA LLC, a Delaware limited liability
company, NOVELIS SOUTH AMERICA HOLDINGS LLC, A Delaware limited liability company, ALUMINUM
UPSTREAM HOLDINGS LLC, a Delaware limited liability company, NOVELIS UK LIMITED, a limited
liability company incorporated under the laws of England and Wales with registered number
00279596, and NOVELIS AG, a stock corporation (AG) organized under the laws of Switzerland, AV
ALUMINUM INC., a corporation formed under the Canada Business Corporations Act (“Holdings”), the
subsidiaries of Holdings from time to time party thereto, ABN AMRO BANK N.V., as administrative
agent for the Revolving Credit Lenders (as defined in the intercreditor Agreement), LASALLE
BUSINESS CREDIT, LLC, as collateral agent for the Revolving Credit Claimholders (as defined in the
Intercreditor Agreement) and as funding agent, ABN AMRO BANK N.V., acting through its Canadian
Branch, as Canadian administrative agent for the Revolving Credit Lenders and as Canadian funding
agent, UBS AG, STAMFORD BRANCH, as administrative agent for the Term Loan Lenders (as defined in
the Intercreditor Agreement), and as collateral agent for the Term Loan Claimholders (as defined
in the Intercreditor Agreement) and certain other persons which may be or become parties thereto
or become bound thereto from time to time. IN THE EVENT OF ANY CONFLICT OR INCONSISTENCY BETWEEN
THE PROVISIONS OF THE INTERCREDITOR AGREEMENT AND THIS AGREEMENT, THE PROVISIONS OF THE
INTERCREDITOR AGREEMENT SHALL GOVERN AND CONTROL.

     25. Taxes. Charges and Expenses. Taxes and Other Taxes (as these terms are defined In
the Term Loan Credit Agreement), charges, costs, and expenses (Including legal fees and
notarial fees), including withholding taxes, relating to, resulting from, or otherwise
connected with, the Pledge, this Agreement, the execution, amendment and/or the
enforcement of this Agreement, on whomsoever imposed, shall be borne and paid exclusively by the
Pledgor. If this Agreement is enforced, the Pledgor shall make such additional payments to the
Collateral Agent so that the Collateral Agent is put In the same net-after tax position that the
Collateral Agent would have obtained absent the enforcement of this Agreement.

     26. Other Provisions. If the Pledgor makes a payment hereunder that is subject to
withholding tax, the Pledgor shall increase the amount of such payment such that, after deduction
and payment of all such withholding taxes, the payee receives an amount equal to the amount it
would have received if no such withholding had been imposed; provided, that the relevant persons
provide such forms, certificates and documentation that the Collateral Agent is legally entitled to
furnish and would be required to reduce or eliminate withholding and, with respect to non-U.S.
withholding taxes, would not, in the Collateral Agent’s judgment, subject it to any material
unreimbursed costs or otherwise be disadvantageous to it in any material respect.

     27. Language. This Agreement is being executed solely in the English language.
Pledgor shall, at its own expense, arrange for this Agreement to be sworn public translated into
Portuguese by a sworn public translator.

9

 

 

 

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EXHIBIT 1

PLACES OF BUSINESS

	a)	 	São Paulo:

Av. das Nações Unidas, 12551, 15th floor, Torre Empresarial World Trade

Center de São Paulo

São Paulo, SP

04578-000

Brazil
	 
	b)	 	Candeias:

Via das Torres, s/no — Centro Industrial de Aratu

Candeias, BA
 CEP 43800-000
 Brazil
	 
	c)	 	Ouro Preto:

Av. Américo R. Gianetti, 521 — Saramenha 
Ouro
Preto, MG
 CEP 35400-000 
Brazil
	 
	d)	 	Pindamonhangaba:

Av. Buriti, 1087 — Feital

Pindamonhangaba, SP

CEP 12441-270

Brazil
	 
	e)	 	Santo André:

Rua Felipe Camarão, 414 — Utinga
 Santo
André, SP
 CEP 09220-902
 Brazil
	 
	f)	 	Belo Horizonte:

Avenlda do Contorno, 8.000 — sala 702

Centro

Belo Horizonte, MG

CEP 30112-010

Brazil
	 
	g)	 	Hydropower Plant — Fumaça:

Est. Miguel Rodrigues A Barroca S/no — Cachoeira do

Brumado

Mariana, MG

CEP 35420-000

Brazil

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	h)	 	Hydropower Plant — Furquim:
 Fazenda Usina de Furquim S/no 
Mariana, MG
 CEP
35420-000
 Brazil
	 
	i)	 	Hydropower Plant — Brecha:

Fazenda Usina de Brecha S/no — Piranga 
Guaraciaba, MG
 CEP 35436-000
 Brazil
	 
	j)	 	Hydropower Plant — Salto:
 Fazenda Usina de Salto S/no 
 Ouro Preto, MG

CEP 35400-000
 Brazil
	 
	k)	 	Hydropower Plant — Brito:
 Estrada do Brito S/no — Brito
 Ponte Nova, MG

CEP 35430-000
 Brazil
	 
	l)	 	Bauxite Mine — Fazenda Vargem:
 Fazenda da Vargem
 Zona Rural
 Santa Bárbara, MG

CEP 35960-000
 Brazil
	 
	m)	 	Bauxite Mine — Antonio Pereira:

Est. de Acesso a Serra Antonio Pereira
 Antonio Pereira, MG 
CEP 301 10-080 
Brazil
	 
	n)	 	Bauxite Mine — Monjolo:

Jazida Monjolo S/no — Distrito de Padre Veigas 
Mariana, MG 

CEP  35420-000
 Brazil
	 
	o)	 	 Bauxite Mine — Fazenda do Lopes
 Jazida Fazenda do Lopes S/no
 Caeté, MG 
CEP
34800-000 
Brazil

12

 

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	p)	 	Bauxite Mine — Serra do Maquiné 
Mina
Serra do Maquiné S/no
 Caeté, MG 
CEP
34800-000
 Brazil
	 
	q)	 	Bauxite Mine — Fazenda Gandarela e Mato Grosso

Fazenda Gandarela e Mato Grosso S/No, Santa Bárbara, MG

CEP 35960-000

Brazil
	 
	r)	 	Bauxite Mine — Galo

Mina Galo S/no — Distrito de Carfanaum 
Faria
Lemos, MG
 CEP 35960-000
 Brazil
	 
	s)	 	Bauxite Mine Lagoa Seca

Estrada de Acesso á Mina Lagoa Seca, S/No — Itabirito — MG

CEP 35450-000

Brazil
	 
	t)	 	Consórcio Candonga (a consortium with CVRD — Cia. Vale Rio Doce)
 Estrada Acesso
a Santana do Deserto, km 12
 Rio Doce, MG
 CEP 35442-000
 Brazil
	 
	u)	 	Warehouse — Aratu
 Via Matoim
s/no — Aratu
 Candeias, BA 
CEP
43800-000 
Brazil
	 
	v)	 	Warehouse — Acuruí
 Depóslto de
Bauxita s/no
 Itabirito, MG
 CEP
35340-000
 Brazil
	 
	w)	 	Crown Embalagens S.A.

Rod. Dom Gabriel P. B. Couto,

Km 80.24

Cabreúva, São Paulo

Brazil

CEP 13315-000

13

 

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EXHIBIT 2

LIST OF EQUIPMENT AND INVENTORY

14

 

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EXHIBIT 3

BASIC TERMS OF SECURED OBLIGATIONS

For the purposes of Article 1,424 of the Brazilian Civil Code, the Secured Obligations are:

1. Term Loan Facilities

a) Principal Amount

Up to US$ 1,360,000,000.00 (one billion and three hundred and sixty million United States
Dollars).

b) Termination

Seven years from the date hereof.

c) Interest

At the Borrowers’ option, loans will bear interest based on the Alternate Base Rate or Adjusted
LIBOR Rate, each plus the Applicable Margin, as described below
(except that all swingline
borrowings will accrue interest based on the Base Rate):

A. Alternate Base Rate Option

Interest will be at the Alternate Base Rate plus the applicable Interest Margin, calculated on the
basis of the actual number of days elapsed in a year of 365 days and payable quarterly in arrears.
The Alternate Base Rate is defined as the higher of the Federal Funds Rate, as published by the
Federal Reserve Bank of New York, plus 1/2 of 1% and the Base Rate of UBS AG, as established from
time to time at its Stamford Branch.

Alternate Base Rate borrowings will be in minimum amounts to be agreed upon and (other than
swingline borrowings) will require same day notice by 9:00 am CST.

B. Adjusted LIBOR Option

Interest will be determined for periods
to be selected by the Borrowers (“Interest Periods”) of
one, two, three or six months and will be at an annual rate equal to the London Interbank Offered
Rate (“LIBOR”) for the corresponding deposits of Dollars, plus the Applicable Margin
(provided that Interest Periods shall be no more than one month until the earlier of (x) the
successful syndication of the Term Loan Facilities (as determined by the Arrangers) and (y) the
date that is three months following the Financing Closing Date). LIBOR will be determined by the
Term Loan Administrative Agent at the start of each Interest Period and will be fixed through such
period. Interest will be paid at the end of each Interest Period or, in the case of Interest
Periods longer than three months, quarterly, and will be calculated on the basis of the actual
number of days elapsed in a year of 360 days. LIBOR will be adjusted for maximum statutory reserve
requirements (if any).

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LIBOR borrowings will require three business days’ prior notice and will be in minimum amounts to
be agreed upon.

16

 

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EXHIBIT 4

POWER OF ATTORNEY

NOVELIS DO BRASIL LTDA., a Brazilian limited liability company, with its principal place of
business in the City of São Paulo, State of São Paulo, at Avenida das Nações Unidas, 12.551,
15th floor, enrolled with the Taxpayers’ Registry of the Ministry of Finance (CNPJ/MF)
under No. 60.561.800/0001-03, hereby represented in accordance with its articles of association by
its undersigned legal representatives (the “Appointer”), irrevocably constitutes and
appoints UBS AG, STAMFORD BRANCH, a financial, having its office at 677 Washington Boulevard,
Stamford, Connecticut, 06901, acting as Collateral Agent in favor of the Secured Parties in
accordance with the Term Loan Credit Agreement (hereinafter referred to as the “Collateral
Agent”); as its attorney-in-fact to act in its name and place, to the fullest extent permitted by
law, to do and perform all and every act and thing whatsoever necessary or desirable, pursuant to
the terms of the Equipment and Inventory Pledge Agreement, dated as of July 6, 2007, entered into
by and among the Appointer and the Collateral Agent (as representative of the Secured Parties)
(together with its respective modifications and amendments, the “Agreement”), including, without
limitation, the following:

          (a) upon the occurrence and during the continuation of an Event of Default, to dispose of,
collect, receive, appropriate, and/or realize upon the Pledged Assets (or any part thereof) and
forthwith sell or assign, give option or options to purchase or otherwise dispose of and deliver
the Pledged Assets or any part thereof, at such prices and upon such terms and conditions as it
may deem appropriate, which shall be compatible with the conditions for the negotiation, in
equivalent conditions, to an extra-judicial sale to be carried out by the Appointer, which
conditions are hereby accepted, as of the date hereof, by the Parties as sufficient for the
validity and effectiveness of such extra-judicial sale of the Pledged Assets, irrespective of any
prior or subsequent notice to the Appointer, in accordance with the provisions set forth in
Article 1,433, Item IV and Article 1,435, Item V of the Brazilian Civil Code, and apply the
proceeds thus received for the payment of the Secured Obligations, and the Collateral Agent is
entitled to exercise all necessary powers for the full compliance of this power of attorney,
including, without limitation, the powers and authority to, acting in strict conformity with
applicable law, purchase foreign currency and make any and all remittances abroad, sign any
necessary foreign exchange agreements with financial institutions in Brazil that may be required
to make such remittances and represent the Appointer before the Central Bank of Brazil and any
other Brazilian governmental authority, if necessary to accomplish the purposes of the Agreement;

(b) upon the occurrence and during the continuation of an Event of Default, take all necessary
actions and execute any document before any governmental authority in the case of the public sale
of the Pledged Assets in accordance with the terms and conditions set out in the Agreement;

(c) upon the occurrence and during the continuation of an Event of Default, take any necessary
action and execute any document consistent with the terms and conditions of the Agreement as the
Collateral Agent may deem necessary or advisable to accomplish the purposes of the Agreement; and

17

 

EXECUTION COPY

(d) The compliance by the Collateral Agent, of the powers granted under the terms herein
shall not allow the Appointer to exercise any withholding rights or claims with respect to the
Pledged Assets, all of which the Appointer hereby expressively waives to the extent permitted by
law.

     Any notice given by the Collateral Agent that an Event of Default has occurred and is
continuing or has ceased shall be conclusive as against the Appointer and any third Parties.

Capitalized terms used but not defined herein, shall have the meaning attributed to them in the
Agreement.

          The powers granted herein are in addition to the powers granted by the Appointer to the
Collateral Agent in the manner provided for In the Agreement, and do not cancel or revoke any such
powers.

     This power of attorney is granted as a condition to the Agreement and as a means of complying
with the obligations set forth therein, in accordance with Article 684 of the Brazilian Civil
Code, and shall be irrevocable, remaining valid and in full force and effect until the Agreement
has been terminated in accordance with its terms and conditions.

São Paulo, July 6, 2007.

NOVELIS DO BRASIL LTDA.

	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 
	Name:

	 	NOVELIS DO BRASIL
	 	 	 	Name:
	 	Alexandre M. Almeida	 	 
	Title:

	 	Antonio Tadeu Coeino
Nardocci 
Presidente
	 	 	 	Title:
	 	Diretor Financeiro

e de Serviços Corporativos	 	 

18

 

EXECUTION COPY

EXHIBIT 5

FORM OF

AMENDMENT TO THE EQUIPMENT AND INVENTORY PLEDGE AGREEMENT

     This instrument of [•] Amendment to the Equipment and Inventory Pledge Agreement
(hereinafter referred to as the “Amendment”) is made by and between:

	(a)	 	NOVELIS DO BRASIL LTDA., Brazilian limited liability company, with Its principal place of
business in the City of São Paulo, State of São Paulo, at
Avenida das Nações Unidas, 12.551,
15th floor, enrolled with the Taxpayers’ Registry of the Ministry of Finance
(CNPJ/MF) under No. 60.561,800/0001-03, hereby represented in accordance with its
articles of association by its undersigned legal representatives (hereinafter referred to
as the “Pledgor” or “Novelis do Brasil”); and
	 
	(b)	 	UBS AG, STAMFORD BRANCH, a financial institution, having its office at 677 Washington
Boulevard, Stamford, Connecticut, 06901, in its capacity as Collateral Agent under
the Term Loan Credit Agreement, hereby represented by its [attorney-in-fact/legal
representative] (hereinafter referred to as the “UBS AG” or “Collateral Agent”); and

All
parties together referred to as “Parties”, and individually each a “Party”;

     WHEREAS, on July 6, 2007, the Parties entered into an Equipment and Inventory Pledge
Agreement (the “Agreement”); and

     WHEREAS, the Parties have agreed to amend the Agreement in order to grant to the Collateral
Agent, as representative of the Secured Parties, a first priority security interest in the Pledged
Assets (as defined below);

     NOW, THEREFORE, the Parties hereto have mutually agreed to enter into this Amendment,
pursuant to the terms and conditions set forth below:

     1. Capitalized terms used but not defined herein shall have the meanings attributed to them in
the Agreement.

     2. Pledgor hereby pledges and transfers the indirect possession of the Additional Assets
listed in the new Exhibit [•] of this document (and which were not set forth in the original
Exhibit [•] of the Agreement or any prior Amendment thereto) (the “Pledged Assets”), to the Secured
Parties, herein represented by the Collateral Agent, and, pursuant to the provision of Article
1,431, sole Paragraph of the Brazilian Civil Code, Pledgor shall maintain the direct possession and
the usable ownership of the Pledged Assets, being authorized to use them during the regular course
of its business and with the obligation to keep and conserve them, remaining the indirect
possession of the Pledged Assets with the Collateral Agent, in order to apply, mutatis mutandis,
all the rights and obligations of the Parties resulting from the Agreement to the Additional
Pledged Assets pledged herein.

19

 

EXECUTION COPY

     3. Pledgor hereby represents and warrants to the Collateral Agent, for the
benefit of the Secured Parties, that:

          (a) the execution, performance and granting of the security interest created hereby was duly
authorized by the required corporate acts by Pledgor and do not or will not (i) violate any
provision of law or contractual obligation applicable to or binding upon Pledgor, (ii) conflict
with, result in a breach of, or constitute (or, with the giving of notice or lapse of time or
both, would constitute) a default under, or, except for consents and approvals that have been
obtained and are in full force and effect, require the approval or consent of any person pursuant
to, any material contractual obligation of Pledgor, or violate any applicable law binding on
Pledgor, or (iii) result in the creation or imposition of any llen on any of its assets or any
income or revenues, except for the pledge created by this Amendment in favour of the Collateral
Agent, as representative of the Secured Parties, and

          (b) this Amendment and the Agreement, amended as herein prescribed or by any
prior Amendment thereto, constitute each one, a legal, valid and binding obligation of Pledgor,
enforceable against Pledgor pursuant to its terms and conditions, and the security Interest
hereby granted shall constitute, when the registrations required by Section 4 of the
Agreement are executed, a licit, valid and perfected security interest upon the Secured Assets,
enforceable pursuant to its terms against all Secured Parties of Pledgor, in all cases, except as
enforcement may be limited by bankruptcy, insolvency, reorganization, moratorium or other similar
laws relating to creditors’ rights generally.

     4. All provisions of the Agreement (as amended by any prior Amendment thereto) not expressly
amended by this Amendment shall remain in full force and effect in
accordance with their terms.

     5. This Amendment shall be governed by and interpreted in accordance with the laws of
Federative Republic of Brazil. The Parties hereto irrevocably submit to the jurisdiction of the
courts sitting in the City of São Paulo, State of São Paulo, Brazil, in any action or proceeding
aimed at settling any dispute or controversy related to this Amendment, and the Parties hereto
irrevocably agree that all claims in respect of such action or proceeding may be heard and
determined in such court. This Amendment is being executed in English.

     IN WITNESS WHEREOF, the Parties have caused this Amendment to be duly executed in the
presence of the undersigned witnesses, in [•] ([•]) counterparts of equal content.

[PLACE AND DATE]

NOVELIS DO BRASIL LTDA.

	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 
	Name:

	 	NOVELIS DO BRASIL
	 	 	 	Name:
	 	Alexandre M. Almeida	 	 
	Title:

	 	Antonio Tadeu Coeino Nardooci

Presidente
	 	 	 	Title:
	 	Diretor Financeiro

e de Serviços Corporativos	 	 

20

 

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UBS AG, STAMFORD BRANCH

	 	 	 	 	 
	 
	 

Name:

	 	 

Name:
	 	 
	Title:

	 	Title:	 	 
	 
	 	 	 	 
	Witnesses:
	 	 	 	 
	 
	 	 	 	 
	 

Nome:

	 	 

Nome:
	 	 
	RG:

	 	RG:	 	 
	ID:

	 	ID:	 	 

21

 

EXHIBIT N

Form of

OPINION OF COMPANY COUNSEL

[See Tab #O.l.]

EXHIBIT N-l

 

 

	 	 	 
	

	 	Suite 3000
79
Wellington St. W.

Box 270, TD Centre

Toronto, Ontario

	 

	 	M5K 1N2 Canada
	 
	 	 
	 

	 	tel.
416.865.0040
	 

	 	fax 416.865.7380
	 
	 	 
	 

	 	www.torys.com

July 6, 2007

UBS AG, Stamford Branch

on its own behalf and as Administrative Agent and Collateral Agent

677 Washington Boulevard

Stamford, Connecticut 06901

Each of the Lenders party to the

Credit Agreement

(as defined below)

Dear Sirs/Mesdames:

          Re: Novelis Inc. — Term Loan Credit Agreement

          We have acted as counsel in the Province of Ontario and the State of New York to Novelis Inc.
(“Canadian Borrower”), Novelis Corporation (“Novelis Corp.”) and the additional loan parties set
out in Schedule A hereto in connection with a credit
agreement dated as of July 6, 2007
(the “Credit Agreement”), among the Canadian Borrower, Novelis Corp. as U.S. borrower, AV Aluminum
Inc. and the other guarantors party thereto, the lenders party thereto (the “Lenders”), UBS AG,
Stamford Branch, as Administrative Agent (in such capacity, the “Administrative Agent”), and as
Collateral Agent (in such capacity, the “Collateral Agent”), UBS Securities LLC, as Syndication
Agent, ABN Amro Incorporated, as Documentation Agent, and ABN Amro Incorporated and UBS Securities
LLC, as Joint Lead Arrangers and Joint Bookmanagers. Capitalized terms not defined herein or in the
Schedules attached hereto shall have the meaning given to them in the Credit Agreement.

          This opinion is given to you pursuant to section 4.01(g) of the
Credit Agreement.

          Examination of Documents

          We have reviewed and participated in the negotiations of each of the documents set out in
Schedule B, each dated as of July 6, 2007 (the Credit Agreement and each of the documents
listed on Schedule B are collectively, the “Documents”).

          We have also made such factual and legal investigations as we deemed necessary or relevant in
connection with the opinions herein expressed. In particular, we have examined originals or
copies, certified or otherwise identified to our satisfaction, of such certificates of public
officials and of such other certificates, documents and records as we considered necessary or
relevant for purposes of the opinions expressed below, including:

	 	(a)	 	the Organizational Documents, as applicable, of each of the Delaware
Loan Parties and the Canadian Loan Parties;

 

 

-2-

	 	(b)	 	resolutions of the board of directors of each of the Delaware Loan Parties and
the Canadian Loan Parties, authorizing, among other things, the execution, delivery and
performance of the Documents to which each is a party;
	 
	 	(c)	 	a certificate of status dated July 5, 2007, issued in respect of each of Cast
House and Aluminum, pursuant to the Business Corporations Act (Ontario);
	 
	 	(d)	 	a certificate of compliance dated July 5, 2007 issued in respect of each of the
Canadian Borrower, 4260848 and 4260856, pursuant to the Canada Business Corporations
Act (“CBCA”);
	 
	 	(e)	 	a certificate of good standing dated July 5, 2007, issued in respect of each of
the Delaware Loan Parties, by the Secretary of State of the State of Delaware
(collectively, the “Good Standing Certificates”); and
	 
	 	(f)	 	an officer’s certificate of each of the Delaware Loan Parties and the Canadian
Loan Parties, with respect to certain factual matters, a copy of each of which has
been delivered to you.

          As to matters of fact material to the opinions hereinafter expressed, we have relied solely
and without independent verification upon the officers’ certificates referred to in item [(f)]
above.

          Assumptions

          We have made the following assumptions:

	 	(a)	 	with respect to all documents examined by us, the genuineness of all
signatures, the legal capacity of individuals signing any documents, the authenticity
of all documents submitted to us as originals, the conformity to authentic original
documents of all documents submitted to us as certified, conformed, telecopied or
photocopied copies, the authenticity of such latter documents and the accuracy and
completeness of all records and other information made available to us;
	 
	 	(b)	 	each of the certificates of status and compliance with respect to the Canadian
Loan Parties referred to above and the Good Standing Certificates continues to be
accurate as of the date of this opinion as if issued on that date;
	 
	 	(c)	 	each of the Documents has been duly authorized, executed and delivered by each
of the parties thereto (other than the Relevant Loan Parties) and constitutes legal,
valid and binding obligations of each of the parties thereto (other than the Relevant
Loan Parties) enforceable against each of them in accordance with their respective
terms;
	 
	 	(d)	 	that Novelis LP is existing as a limited partnership under the laws of its
jurisdiction of formation, Novelis LP has the power and capacity to perform its
obligations under the Documents to which Novelis LP is a party, that, to the extent the
laws of Quebec apply, the General Partner has in its capacity as General Partner on
behalf of Novelis LP duly authorized the execution, delivery and performance of the
obligations of Novelis LP under the Documents to which Novelis LP is
a party and has
duly executed and delivered the Documents to which Novelis LP is a party and that the
execution, delivery and performance by the General Partner on behalf of Novelis LP of
the Documents to which

 

 

-3-

Novelis LP is a party do not breach or contravene the Organizational Documents of Novelis
LP or its governing law;

	 	(e)	 	that each of the Foreign Loan Parties is incorporated and existing under the laws of its
jurisdiction of incorporation, has the corporate power and capacity to perform its obligations
under the NY Documents to which it is a party, has duly authorized the execution, delivery
and performance of its respective obligations under the NY Documents to which it is a
party, has duly executed and delivered the NY Documents to which it is a party and the
execution, delivery and performance by each Foreign Loan Party of the NY Documents to which it
is a party do not breach or contravene the Organizational Documents of such Foreign Loan Party
or its respective governing law ;
	 
	 	(f)	 	that Novelis Corp. is incorporated and existing under the laws of its jurisdiction of
incorporation, has the corporate power and capacity to perform its obligations under the NY
Documents to which it is a party and has duly authorized the execution, delivery and
performance of its obligations under the NY Documents to which it is a party and that the
execution, delivery and performance by Novelis Corp. of the NY Documents to which it is a
party do not breach or contravene the Organizational Documents of Novelis Corp. or its
governing law;
	 
	 	(g)	 	that the minute books of each of the Relevant Loan Parties made available to us are the
original minute books of such companies, and contain records of all meetings, resolutions and
proceedings of the shareholders, members, directors and committees of the board of directors
of such companies and that such minute books are true, correct and complete in all respects
and there have been no other meetings, resolutions or proceedings of the shareholders,
members, board of directors or committees of the board of directors of such company not
reflected in such minute books;
	 
	 	(h)	 	that each of the Documents to which a Canadian Loan Party is a party has been duly executed
and delivered in accordance with the terms of the applicable contract law of the location
where such execution and delivery took place, being Chicago, Illinois, except to the extent
that the laws of the Province of Ontario are applicable thereto;
	 
	 	(i)	 	the collateral charged in the Canadian Security Documents does not include consumer goods
(as defined in the Personal Property Security Act (Ontario) (the “PPSA”));
	 
	 	(j)	 	none of the Lenders, the Administrative Agent or the Collateral Agent is subject to
Regulation T of the Board of Governors of the Federal Reserve System;
	 
	 	(k)	 	the certificates representing the shares pledged pursuant to the US Security Agreement and
the Ontario GSA have been delivered to the Collateral Agent or its agent (other than any
Loan Party or its agent) in New York and are being held by the Collateral Agent or its agent
(other than any Loan Party or its agent);
	 
	 	(1)	 	the Lenders have acted in good faith and without notice of any defense against the
enforcement of any rights created by the transactions contemplated by the Documents;
	 
	 	(m)	 	there has not been any mutual mistake of fact or misunderstanding, fraud, duress or undue
influence; and

 

 

-4-

	 	(n)	 	the choice of the laws of the State of New York as the governing law of the
NY Documents was not procured by fraud, over-reaching, duress, undue influence or
ignorance.

          Whenever an opinion set forth herein with respect to the existence or absence of facts is
qualified by the phrase “to the best of our knowledge” or “to our knowledge”, it is intended to
indicate that during the course of our representation of the Loan Parties in connection with the
transactions described in the initial paragraph of this opinion and as a result of receiving and
reviewing the certificates of officers of the Loan Parties, no information has come to the
attention of any of the lawyers involved in those transactions that has given any of those lawyers
actual knowledge of the existence or absence of such facts.

          Filings and Registrations

          We have examined copies of the UCC-1 financing statements (the “UCC Financing Statements”)
and have made the registration of the financing statements under the PPSA in favour of the
Collateral Agent as listed on Schedule C hereto (the “PPSA Financing Statements” and,
together with the UCC Financing Statements, the “Financing Statements”).

          Searches and Registrations

          We have conducted, or have caused to be conducted, the searches identified in Schedule
C hereto (the “Searches”) for filings or registrations made in those offices of public record
listed in Schedule C, in each case as of the dates set forth in Schedule C. The Searches
were conducted in respect of the current name and all former names of each of the entities list on
Schedule C and of its predecessors by amalgamation or arrangement, except for the
bankruptcy searches described in Schedule C, which were conducted only against the current
name of each such entities. The results of the Searches are set out
in Schedule C.

          Laws Addressed

          Our opinions in paragraphs 2, 3, 4 (with respect to the Canadian Loan Parties), 5, 9, 15, 16
to 18 and 31 to 33 below are limited to the laws of the Province of Ontario and the federal laws
of Canada applicable therein. Our opinions in paragraphs 1, 4 (with respect to the Delaware Loan
Parties), 6, 8, 12, 13, 14, 19 to 25 and 27 to 30 below are limited to the laws of the State of
New York, the federal laws of the United States of America, the Delaware General Corporation Law,
the Delaware UCC (as defined below), the District of Columbia UCC (as defined below) and the
Delaware Limited Liability Company Act. Our opinions in paragraphs 7, 10, 11 and 26 below are
limited to the laws of the Province of Ontario and the federal laws of Canada applicable therein,
and to the laws of the State of New York, the federal laws of the United States of America and the
Delaware General Corporation Law and the Delaware Limited Liability Company Act.

          With respect to any opinions addressing the laws of the State of Delaware, you are aware that
no members of our firm are admitted to the Bar of the State of Delaware and that such opinions are
based upon our general familiarity with such laws as a result of our prior involvement in
transactions of a similar nature involving such laws. We have reviewed the provisions of the
Uniform Commercial Code relating to secured transactions as enacted and in effect on the date
hereof in the District of Columbia as it appears in the Secured Transactions Guide published by
Commerce Clearing House, Inc., updated through June 13, 2007 and, to the extent such opinions
involve conclusions as to the validity and perfection of security interests under the laws of the
District of Columbia, they are based solely upon such review. Without limiting the generality of
the immediately preceding sentences, we express no opinion

 

 

-5-

with respect to the laws of any other jurisdiction to the extent that those laws may govern the
validity, perfection, effect of perfection or non-perfection or enforcement of the security
interests created by the Canadian Security Documents or the perfection, effect of perfection or
non-perfection or enforcement of the security interests created by the US Security Documents, in
each case as a result of the application of Ontario or New York conflict of laws rules, as
applicable. In addition, we express no opinion whether, pursuant to those conflict of laws rules,
Ontario law would govern the validity, perfection, effect of perfection or non-perfection or
enforcement of the security interests created by the Canadian Security Documents or whether New
York law would govern the perfection, effect of perfection or non-perfection or enforcement of the
security interests created by the U.S. Security Documents. Unless otherwise indicated, (i) “UCC”
shall mean the Uniform Commercial Code, as adopted and in effect on the date hereof in the State of
New York, (ii) “Delaware UCC” shall mean the Uniform Commercial Code as in effect on the date
hereof in the State of Delaware, and (iii) “District of Columbia UCC” shall mean the UCC as in
effect on the date hereof in the District of Columbia (in each case, without regard to laws
referred to in Section 9-201 thereof).

          All opinions expressed in this letter concerning the laws of the Province of Ontario and the
federal laws of Canada applicable in Ontario have been given by members of the Law Society of
Upper Canada and all opinions concerning the laws of the State of New York and the federal laws of
the United States have been given by members of the New York State Bar.

          Opinions

          Based upon and subject to the foregoing, and subject to the qualifications expressed below,
we are of the opinion that:

Incorporation,
Authorization, Execution and Delivery

	 	1.	 	Each of the Delaware Loan Parties is duly organized and validly existing under the laws
of the State of Delaware and based solely on the Good Standing Certificates, in good
standing in the State of Delaware.
	 
	 	2.	 	Cast House is incorporated and existing under the laws of the Province of Ontario.
	 
	 	3.	 	Each of the Canadian Borrower, Aluminum, 4260848 and 4260856 is incorporated and
existing under the CBCA.
	 
	 	4.	 	Each of the Relevant Loan Parties has all requisite corporate or limited liability
company power and authority to carry on its business as now conducted and to own and lease
its property and to enter into and perform its obligations under the Documents to which it
is a party (and, in the case of 4260848, also in its capacity as general partner of Novelis
LP (in such capacity, the “General Partner”) with respect to the Documents to which Novelis
LP is a party), and each of the Relevant Loan Parties (and, in the case of 4260848, on its
own behalf and as General Partner) has duly authorized by all necessary corporate or
limited liability company action the execution and delivery of each of the Documents to
which it is a party and the performance of its respective obligations thereunder and, in
the case of the General Partner, the Documents to which Novelis LP is a party.
	 
	 	5.	 	Each of the Documents has been duly executed and delivered by each Canadian Loan Party
and, in the case of Novelis LP, by the General Partner, which is a party thereto, to the
extent the laws of Ontario apply.

 

 

- 6 -

	 	6.	 	Each of the Documents has been duly executed and delivered by each US Loan Party that
is a party thereto.
	 
	 	7.	 	The execution, delivery and performance by each of the Relevant Loan Parties (and in
the case of 4260848, on its own behalf and as General Partner) of each of the Documents to
which it is a party and consummation of the transactions contemplated thereby (including
the borrowing of Loans and issuance of Letters of Credit on the Closing Date and the
granting of Liens to secure the Secured Obligations), (a) will not violate the
Organizational Documents of such Relevant Loan Party, (b) will not violate (i) any Ontario
provincial law, rule or regulation or federal Canadian law, rule or regulation applicable
in the Province of Ontario, the Delaware Limited Liability Company Act, the General
Corporation Law of the State of Delaware or any New York State law or regulation or federal
law of the United States, which in any case is applicable to the respective Relevant Loan
Parties or (ii) any judgment, decree or order of any Governmental Authority of the Province
of Ontario, State of New York or Her Majesty the Queen in the Right of Canada known to us
to be applicable to any Relevant Loan Party, (c) will not violate or result in a default
under the Revolving Credit Agreement and (d) will not violate, result in a default under,
or require or result in the granting of Liens under the Senior Note Documents.

Enforceability

	 	8.	 	Each of the NY Documents constitutes the legal, valid and binding obligation of each of
the Loan Parties that are party thereto, enforceable against each such party in accordance
with its terms.
	 
	 	9.	 	Each of the Ontario Documents constitutes the legal, valid and binding obligation of
the Canadian Loan Parties and Novelis LP that are party thereto, enforceable against such
Canadian Loan Party and Novelis LP in accordance with its terms.
	 
	 	10.	 	No consents or approvals of, registration or filing with, or any other action by, any
Governmental Authority are required under the federal laws of the United States, the laws
of the State of New York, the General Corporation Law of the State of Delaware, the
Delaware Limited Liability Company Act, the laws of the Province of Ontario or the federal
laws of Canada applicable in the Province of Ontario for the execution, delivery or
performance of the Documents to which any Loan Party is a party except (i) such as have
been obtained or made and are in full force and effect, and (ii) filings necessary to
perfect Liens created by the Documents.
	 
	 	11.	 	To our knowledge, there are no actions, suits or proceedings at law or in equity by or
before any Governmental Authority now pending or threatened against or affecting any Loan
Party or any business, property or rights of any Loan Party that involve any of the
Documents or the Transactions.
	 
	 	12.	 	Neither the execution, delivery or performance of the Documents, the making of the
Loans or the issuance of Letters of Credit under the Credit Agreement, the use of proceeds
therefrom or the pledge of the Securities Collateral (as defined in the US Security
Agreement) pursuant to the US Security Agreement will violate or be inconsistent with the
provisions of Regulation T, Regulation U or Regulation X.
	 
	 	13.	 	No Relevant Loan Party is an “investment company” or a company “controlled” by an
“investment company,” as defined in, or subject to regulation under, the Investment Company
Act of 1940, as amended.

 

 - 7 - 

Creation
of Security, Registration etc

	 	14.	 	The US Security Agreement is effective to create in favor of the Collateral Agent for
the benefit of the Secured Parties, legal, valid and enforceable Liens on and security
interests in the collateral therein described and which constituted property in which a
security interest can be granted under Article 9 of the UCC (the “Article 9 Collateral”).
	 
	 	15.	 	Each of the Ontario Security Documents creates in favour of the Collateral Agent a
valid security interest in the collateral referred to therein to which the PPSA applies
(the “PPSA Collateral”) in which each of the debtors party thereto now has rights, and is
sufficient to create a valid security interest in favour of the Collateral Agent in PPSA
Collateral in which each of the debtors party thereto hereafter acquires rights when those
rights are so acquired, in each case to secure payment and performance of the Secured
Obligations or the Obligations, as the case may be (as such terms are defined in the
Ontario Security Documents).
	 
	 	16.	 	Registration has been made in all public offices provided for under the laws of Ontario
where such registration is necessary to preserve, protect or perfect the security interests
created by each Ontario Security Document in favour of the Collateral Agent in the PPSA
Collateral charged therein.
	 
	 	17.	 	The Debenture is in proper form to be accepted for registration by the Land Registry
Office for the Land Titles Division of Frontenac (the “LTO”). When registered with the LTO,
the Debenture will constitute a good and valid charge of the right, title and interest of
the Canadian Borrower in the Ontario Real Property (as defined below).
	 
	 	18.	 	The registration of the Debenture in the LTO is the only filing, registration or
recording necessary to give constructive notice of the lien created by the Debenture on the
real property located in Kingston, Ontario described therein (the “Ontario Real Property”)
to subsequent purchasers and mortgagees of the Ontario Real property. No other
registrations, recordings, filings, re-recordings or re-filings other than the registration
of the Debenture in the LTO are necessary in order to maintain the validity or priority of
the lien created by the Debenture on the Ontario Real Property.
	 
	 	19.	 	Upon delivery to the Collateral Agent in the State of New York (or to its agent (other
than any Loan Party or its agent)) of the certificates representing the Securities
Collateral that are required to be delivered to the Collateral Agent pursuant to the US
Security Agreement and the Ontario Security Documents (the “Pledged Securities”) in
registered form, endorsed in blank by an effective endorsement or accompanied by undated
stock powers with respect thereto duly endorsed in blank by an effective endorsement, the
Collateral Agent will have control (within the meaning of the UCC) of, and a perfected
security interest in, the Pledged Securities for the benefit of the Secured Parties under
the UCC. Subject to the terms of the Intercreditor Agreement, assuming neither the
Collateral Agent nor any of the Secured Parties has notice of any adverse claim (within the
meaning of the UCC) to the Pledged Securities, the Collateral Agent will acquire the
security interest in the Pledged Securities for the benefit of the Secured Parties free of
any adverse claim.
	 
	 	20.	 	Upon the execution of the Control Agreement(s) the Collateral Agent shall have control
(within the meaning of the UCC) of, and a perfected security interest in, that portion of
the Security Agreement Collateral that is required to be subject to a Control Agreement
pursuant to the terms of the US Security Agreement.

 

 - 8 - 

	 	21.	 	Each of the UCC Financing Statements listed in Schedule C is in the appropriate form
for filing in the applicable filing office. Upon the proper filing and acceptance of such
Financing Statements in the applicable filing offices and the payment of all filing fees due in
connection therewith, the Collateral Agent on behalf of the Secured Parties will have a
perfected security interest in the Article 9 Collateral to the extent that a security interest
in such collateral can be perfected by the filing of a financing statement pursuant to the
Delaware UCC or the District of Columbia UCC, as applicable.
	 
	 	22.	 	Upon due filing of the Financing Statements in the applicable jurisdiction noted on
Schedule C and payment of all filing and recordation fees associated therewith, and
when the US Security Agreement or a short form thereof is filed in the United States Patent
and Trademark Office and the United States Copyright Office, the Liens created by the US
Security Agreement shall constitute fully perfected Liens on, and security interests in, all
right, title and interest of the grantors thereunder in the Intellectual Property Collateral
(as defined in the Security Agreement).
	 
	 	23.	 	The Liens and the security interests created by the US Security Agreement on the Article 9
Collateral will validly secure the payment of all future advances pursuant to the Credit
Agreement, whether or not at the time such advances are made, an Event of Default or other
event not within the control of the Lenders has relieved or may relieve the Lenders from their
obligations to make such advances, and are perfected to the extent set forth in paragraphs 14,
19, 20, 21 and 22 above with respect to such future advances.
	 
	 	24.	 	Under Section 5-1401 of the General Obligations Law of the State of New York, a federal or
state court sitting in New York would honor the parties’ choice of internal laws of the State
of New York as the law applicable to the NY Documents (to the extent set forth in such NY
Documents) in any action to enforce such NY Documents.
	 
	 	25.	 	The Obligations and the Guaranteed Obligations are “Senior Debt” within the meaning of the
Senior Note Agreement.
	 
	 	26.	 	No taxes or other charges, including, without limitation, intangible or documentary stamp
taxes, mortgage or recording taxes, transfer taxes or similar taxes or charges, are payable
under the laws of Ontario, the federal laws of Canada, or the laws of the State of New York,
on account of the execution and delivery of the Documents or the creation of the indebtedness
evidenced or secured by any of the Documents or the recording or filing of the Financing
Statements or the NY Mortgage or as a condition to the legality or enforceability of the NY
Mortgage, except for nominal applicable filing, registration or recording fees and taxes
(including in connection with any re-advance under the Credit Agreement).
	 
	 	27.	 	No tax is payable under Part XIII of the Income Tax Act (Canada) (the “Tax Act”), or any
similar law of the Province of Ontario (and the Canadian Borrower is not required to withhold
or collect any such tax) on any amount that the Canadian Borrower pays or credits under any
Canadian Term Loan advanced on the date hereof as on account or in lieu of, payment, or in
satisfaction of interest (including commitment fees relating thereto) or principal to Lenders
in respect of any Canadian Term Loan advanced on the date hereof who, for the purposes of the
Tax Act are neither resident nor deemed to be resident in Canada (such Lenders “Non-Resident
Lenders”) provided that at the time of any such payment or credit, the Canadian Borrower and
each Canadian Guarantor deals at arm’s length with the Non- Resident Lenders for the purpose
of the Tax Act. This opinion does not extend to interest payable by reason of failure to pay
amounts when due (other than, for greater certainty, interest on overdue interest on the Term
Loans).

 

 - 9 - 

NY Mortgage

	 	28.	 	The NY Mortgage (i) is in proper form to be accepted for recording by the County
Recorder identified in Schedule D attached hereto, (ii) creates and constitutes (A)
a valid mortgage lien on that portion of the Mortgaged Property (as defined in the NY
Mortgage) that constitutes real property (“NY Real Property”) and (B) a valid security
interest in such of the Mortgaged Property that constitutes fixtures (the “UCC Property”)
and is subject to the provisions of Article 9 of the Uniform Commercial Code as in effect
in the State of New York, each in favor of the Collateral Agent for the benefit of the
Secured Parties (as defined in the NY Mortgage) securing the Secured Obligations (as
defined in the NY Mortgage) and (iii) contains the terms and provisions necessary to enable
Collateral Agent, following a default thereunder and the satisfaction of any procedural
requirements (such as notice or time to cure), to exercise the remedies which are
customarily available to a mortgage lienholder in the State of New York.
	 
	 	29.	 	The recording of the NY Mortgage with the County Recorder identified in Schedule
D attached hereto is the only filing or recording necessary to give constructive notice
of the lien created by the NY Mortgage to subsequent purchasers and mortgagees of the NY
Real Property. No other recordings, filings, re-recordings or refilings other than those
identified in Schedule D are necessary in order to maintain the validity or
priority of the lien created by the NY Mortgage on the NY Real Property.
	 
	 	30.	 	Upon the proper filing and acceptance of the Financing Statements relating to the NY
Mortgage with the offices identified in Schedule D attached hereto, the security
interest, lien or pledge created by the NY Mortgage in that portion of the Mortgaged
Property which constitutes fixtures and which are subject to the provisions of Article 9 of
the UCC is duly perfected. Such Financing Statements adequately identify such Mortgaged
Property described therein to provide sufficient notice to third parties of the security
interest referenced therein (it being understood that we offer no opinion as to the
accuracy of the legal description attached thereto).
	 
	 	31.	 	The Collateral Agent is permitted under the laws of the State of New York without
naming all of the Lenders in any applicable legal proceeding to exercise remedies under the
NY Mortgage for the realization of any of the Collateral in its own name, as Collateral
Agent.
	 
	 	32.	 	Based solely on a certificate of good standing dated July 5, 2007, issued in
respect of Novelis Corp. by the Department of State of the State of New York, Novelis
Corp. is qualified to do business and is in good standing as a foreign corporation
under the laws of the State of New York.

Enforcement of Judgments etc.

	 	33.	 	If any provision in any NY Document to which a Canadian Loan Party or Novelis LP is a
party is sought to be enforced against any Canadian Loan Party or Novelis LP in an action
or proceeding brought before a court of competent jurisdiction in the Province of Ontario,
such court in the Province of Ontario would (i) recognize the express choice of laws chosen
by the parties in such Documents, provided that such choice of laws
is bona fide, in the
sense that it was not made with a view to avoiding the consequences of the laws of any
other jurisdiction and provided further that such choice is not contrary to public policy,
as that term is understood under the laws of the Province of Ontario; and (ii) if that
choice of laws is recognized, apply the laws of the State of New York to all issues that
are to be determined by those laws under Ontario conflict of laws rules in that action or
proceeding, upon appropriate evidence as to those laws being adduced;

 

 - 10 - 

	 	 	 	however, an Ontario court will not apply any laws of the State of New York which are contrary
to Ontario public policy.
	 
	 	34.	 	A court in the Province of Ontario has, however, an inherent power to decline to hear such an
action or proceeding if it is contrary to public policy, as such term is understood under the
laws of the Province of Ontario, for it to do so, or if such court is
not the proper forum to
hear such action or proceeding, or if concurrent proceedings are being brought elsewhere.
None of the terms of any NY Document to which a Canadian Loan Party or Novelis LP is a party
are, insofar as we are aware, contrary to Ontario public policy, as such term is understood
from case law decided in the Province of Ontario, and accordingly, it would not, insofar as we
are aware based on our review of any NY Document to which a Canadian Loan Party or Novelis LP
is a party and a consideration of the potential proceedings that may be brought in relation to
them, be contrary to Ontario public policy for an Ontario court to hear an action or
proceeding to enforce any of such NY Documents in the Province of Ontario.
	 
	 	35.	 	A final and conclusive in personam judgment against any Canadian Loan Party or Novelis LP
under or in respect of the any NY Document obtained in any court of competent jurisdiction in
the State of New York (including in any federal court of the United States sitting in the City
of New York and otherwise having competent jurisdiction), for a definite sum of money, given
on the merits, and which is not impeachable as void or voidable under the internal laws of New
York, would be recognized and enforced by an Ontario court in an action by a judgment creditor
(for example, the Collateral Agent) to enforce such judgment, provided that:

	 	(i)	 	such judgment was not obtained by fraud;
	 
	 	(ii)	 	such judgment and the proceedings leading thereto did not
involve the breach of and were not otherwise contrary to natural justice,
including the fundamental right of a party to adequate notice and be heard fairly;
	 
	 	(iii)	 	enforcement of such judgment would not be contrary to the
public policy of the Province of Ontario (and we are not aware of any reason why
enforcement of such judgment would be contrary to such public policy);
	 
	 	(iv)	 	the enforcement of that judgment does not constitute, directly
or indirectly, the enforcement of foreign revenue or penal laws; and
	 
	 	(v)	 	the action is commenced within the time limitations set out in
any applicable limitations statute.

	 	 	 	Qualifications
	 
	 	 	 	The foregoing opinions are subject to the following qualifications:
	 
	 	(a)	 	The enforceability of the Domestic Documents is subject to bankruptcy, insolvency,
reorganization, arrangement, winding-up, moratorium and other similar laws of general
application affecting the enforcement of creditors’ rights generally.
	 
	 	(b)	 	Our opinions are subject to the effect of general principles of equity, whether applied
by a court of law or equity, including principles (i) governing the availability of
specific performance, injunctive relief or other equitable remedies, which generally place
the award of such remedies, subject to certain guidelines, in the discretion of the court
to

 

 - 11 - 

	 	 	 	which application for such relief is made, (ii) affording equitable defenses (e.g., waiver,
laches and estoppel) against a party seeking enforcement, (iii) requiring good faith and
fair dealing in the performance and enforcement of a contract by the party seeking its
enforcement, (iv) requiring reasonableness in the performance and enforcement of an
agreement by the party seeking enforcement of the contract, (v) requiring consideration of
the materiality of (A) a breach and (B) the consequences of the breach to the party seeking
enforcement, (vi) requiring consideration of the commercial impracticability, illegality or
impossibility of performance at the time of attempted enforcement, and (vii) affording
defenses based upon the unconscionability of the enforcing party’s conduct after the
parties have entered into the contract.
	 
	 	(c)	 	The Collateral Agent and the Secured Parties may be required to give the Loan Parties a
reasonable time to repay following a demand for payment prior to taking any action to enforce
its right of repayment or before exercising any of the rights and remedies expressed to be
exercisable by the Collateral Agent or the Secured Parties in the Domestic Documents.
	 
	 	(d)	 	We have taken no steps to provide the notices or to obtain the acknowledgements prescribed in
Part VII of the Financial Administration Act (Canada) relating to the assignment of federal
Crown debts. An assignment of federal Crown debts which does not comply with that Act is
ineffective as between the assignor and the assignee and as against the Crown. Consequently,
the Collateral Agent would not have a valid security interest in federal Crown debts unless
that Act is complied with.
	 
	 	(e)	 	We express no opinion as to whether a security interest may be created in:

	 	(i)	 	property consisting of a receivable, license, approval, privilege,
franchise, permit, lease or agreement (collectively, “Special Property”) to the
extent that the terms of the Special Property or any applicable law prohibit its
assignment or require, as a condition of its assignability, a consent, approval or
other authorization or registration which has not been made or given, except to the
extent such restrictions are rendered ineffective pursuant to Section 9-406 through
9-409 of the UCC or
	 
	 	(ii)	 	permits, quotas or licenses which are held by or issued to the
Relevant Loan Parties.

	 	(f)	 	We express no opinion as to any security interest created by the Security Documents with
respect to any property of the Relevant Loan Parties that is transformed in such a way that it
is not identifiable or traceable or any proceeds of property of the Relevant Loan Parties that
are not identifiable or traceable.
	 
	 	(g)	 	We have not registered any of the Security Documents or notice thereof in any land registry
office or under any land registry statutes even though the Security Documents may create a
security interest in a Relevant Loan Party’s real property or leases of real property or in
property which is now or may hereafter become a fixture or a right to payment under a lease,
mortgage or charge of real property.
	 
	 	(h)	 	We have made no registrations under the Patent Act (Canada), the Trade-marks Act
(Canada), the Industrial Designs Act (Canada), the Integrated Circuit Topography Act

 

 - 12 - 

	 	 	 	(Canada), the Copyright Act (Canada) and/or offices in connection with any Security
Document.
	 
	 	(i)	 	We express no opinion as to whether any of the Relevant Loan Parties has title to or
any rights in any real or personal property, including without limitation, any of the Article
9 Collateral, nor as to the priority of any security interest created by the Security
Documents in any such property, except as set forth in paragraph 19.
	 
	 	(j)	 	We advise you that certain rights of debtors and duties of secured parties referred
to in the PPSA, and in Sections 1-102(3) and 9-602 of the UCC, may not be waived, released,
varied or disclaimed by agreement prior to a default and our opinions regarding any such
waivers, releases, variations and disclaimers are limited accordingly. The PPSA and the UCC
may also affect the enforcement of certain rights and remedies contained in the Security
Documents to the extent that those rights and remedies are inconsistent with or contrary to
the PPSA and the UCC. However, neither the PPSA nor the UCC render any of the Security
Documents invalid as a whole, and there exist, in each Security Document or pursuant to
applicable law, legally adequate remedies for realization of the principal benefits of the
PPSA Collateral and the Security Agreement Collateral purported to be provided by such
Security Document.
	 
	 	(k)	 	Notwithstanding any provision of any Domestic Document to the contrary, any certificate
or determination provided for therein may be subject to challenge in a court on the grounds
of fraud, collusion, mistake on the face of the certificate, or mistake on the basis that the
certificate differed in a material respect from the certificate contemplated in such
provision.
	 
	 	(1)	 	We express no opinion as to the enforceability of any provision of the Domestic
Documents:

	 	(i)	 	which purports to waive all defences which might be available to, or
constitute a discharge of the liability of, any of the Relevant Loan Parties;
	 
	 	(ii)	 	which purports to release, exculpate or exempt a party, its agents or any
receiver, manager or receiver-manager appointed by it from, or require
indemnification of a party, its agents or any receiver, manager or receiver-manager
appointed by it for, liability for its own action or inaction, to the extent the
action or inaction involves gross negligence, recklessness, willful misconduct,
unlawful conduct or fraud; or
	 
	 	(iii)	 	with respect to the laws of the Province of Ontario only, which states that
amendments or waivers of or with respect to such Documents that are not in writing
will not be effective.

	 	(m)	 	Provisions contained in any of the Domestic Documents which purport to sever from such
Documents any provision which is prohibited or unenforceable under applicable law without
affecting the enforceability or validity of the remainder of such Document may be enforced
only in the discretion of a court.
	 
	 	(n)	 	We express no opinion as to the enforceability of any provision of the Domestic
Documents which requires any of the Relevant Loan Parties to pay, or to indemnify the Secured
Parties, the Agents or the Collateral Agent for, the costs and expenses of the

 

 - 13 - 

	 	 	 	Secured Parties, the Agents or the Collateral Agent in connection with judicial
proceedings, since those provisions may derogate from a court’s discretion to determine by
whom and to what extent those costs should be paid. Nor do we express any opinion with
respect to rules of law, statute, ordinance, rule, regulation, order, judgment or decree
that governs and affords judicial discretion regarding the determination of damages and
entitlement to attorneys’ fees and other costs. We advise you that the recoverability of
costs and expenses may be limited to those a court considers to be reasonably incurred and
the costs and expenses incidental to all court proceedings may be in the discretion of the
court and the court may have the discretion to determine by whom and to what extent such
costs shall be paid and our opinions herein are limited accordingly.
	 
	 	(o)	 	We express no opinion as to any provision of any Domestic Document which purports to waive,
or to require waiver of, the obligations of good faith, fair dealing, diligence and
reasonableness or that purport to define or dictate what is commercially reasonable.
	 
	 	(p)	 	We express no opinion as to the enforceability of any rights to contribution or
indemnification provided for in the Domestic Documents which violate public policy underlying
any law, rule or regulation (including any federal or state securities law, rule or
regulation).
	 
	 	(q)	 	We express no opinion as to the applicability or effect of any fraudulent transfer or
similar law on the Documents or any transactions contemplated thereby.
	 
	 	(r)	 	We advise you that forum selection and choice of law clauses in contracts are not
necessarily binding on the court(s) in the forum selected in the United States, if (i) their
application to such contract would be adjudicated by a court of competent jurisdiction to (A)
be unconstitutional or (B) involve fraud, in which case, common law choice of law and forum
selection principles would be applicable or (ii) the choice of law would be contrary to
Section 1-105(2) of the UCC, and our opinions are limited accordingly.
	 
	 	(s)	 	Our opinions regarding the creation and perfection of security interests are subject to the
effect of (i) the limitations on the existence and perfection of security interests in
proceeds resulting from the operation of Section 9-315 of any applicable Uniform Commercial
Code; (ii) the limitations in favor of buyers, licensees and lessees imposed by Sections
9-320, 9-321 and 9-323 of any applicable Uniform Commercial Code; (iii) the limitations with
respect to documents, instruments and securities imposed by Section 9-331 and 8-303 of any
applicable Uniform Commercial Code; (iv) other rights of persons in possession of money,
instruments and proceeds constituting certificated securities; and (v) section 547 of the
Bankruptcy Code with respect to preferential transfers and section 552 of the Bankruptcy Code
with respect to any Security Agreement Collateral acquired by any Relevant Loan Party
subsequent to the commencement of a case against or by such Loan Party under the Bankruptcy
Code.
	 
	 	(t)	 	In connection with New York only, we express no opinion with respect to any self-help
remedies to the extent they vary from those available under the UCC or other applicable
Uniform Commercial Code or with respect to any remedies otherwise inconsistent with the UCC
(to the extent that the UCC is applicable thereto) or other applicable law (including,
without limitation, any other applicable Uniform Commercial Code).
	 
	 	(u)	 	We express no opinion as to the effect on the opinions expressed herein of the compliance
or non-compliance of the Lenders, the Agents, the Collateral Agent or any

 

 - 14 - 

	 	 	 	party (other than the Relevant Loan Parties) to the Documents with any state, federal or
other laws or regulations applicable to them.
	 
	 	(v)	 	A receiver or receiver and manager appointed pursuant to any of the Security Documents may,
for certain purposes, be treated as the agent of the Collateral Agent and not solely the
agent of a Relevant Loan Party, notwithstanding any provision in such documents to the
contrary.
	 
	 	(w)	 	We express no opinion regarding the perfection of a security interest in any real or
personal property referred to in the Security Documents that is not subject to the PPSA,
Article 9 or, to the extent applicable, Article 8 of the UCC.
	 
	 	(x)	 	Article 9 of the UCC requires the filing of continuation statements within 6 months of the
lapse date (which date is 5 years after the original filing date) in order to maintain the
effectiveness of the filings referred to in our letter.
	 
	 	(y)	 	Additional filings may be necessary if any of the Relevant Loan Parties changes its name,
identity or corporate or organizational structure or the jurisdiction in which it is
organized, any of its places of business, its chief executive office or any Article 9
Collateral is located.
	 
	 	(z)	 	Our opinion in paragraph 27 above is based on the provisions of the Tax Act and the
Corporations Tax Act (Ontario) and the regulations thereto, each as at the date hereof. Our
opinion also takes into account proposed amendments to any of the foregoing which have been
publicly announced prior to the date hereof. Our opinion is also based on relevant
jurisprudence, as well as our understanding of the current published administrative policies
and assessing practices of the Canada Revenue Agency (“CRA”) in particular as they relate to
“change of control”, “asset sales”, and “casualty”. In addition, the CRA has not issued an
advance tax ruling in connection with the Documents. Neither the CRA nor the courts are bound
by our opinions expressed herein.
	 
	 	(aa)	 	To the extent that any opinion relates to the enforceability of the choice of New York law
and choice of New York forum provisions of the NY Documents, our opinion is rendered in
reliance upon N.Y. Gen. Oblig. Law §§ 5-1405, 5-1402 (McKinney 2001) and N.Y. CPLR 327(b)
(McKinney 2001) and is subject to the qualifications that such enforceability may be limited
by public policy considerations of any jurisdiction, other then the courts of the State of
New York, in which enforcement of such provisions, or of a judgment upon an agreement
containing such provisions, is sought.

 

 - 15 - 

               This opinion is given as of the date hereof and may be relied upon only by the addressees
hereof for the purposes of the transaction contemplated by this opinion. It may not be relied upon
by any other person except an assignee or successor of the Agents or any Lender or for any other
purpose, nor may it be quoted in whole or in part or otherwise referred to, without our prior
written consent provided that copies of this opinion may be provided to governmental authorities
having jurisdiction or oversight over any Lender or Agent including, without limitation, The
National Association of Insurance Commissioners.

Very truly yours,

ACB/DGL/AED/DAD

 

  

SCHEDULE A

Canada

	 	a)	 	Novelis Cast House Technology Ltd. (“Cast House”)
	 
	 	b)	 	4260848 Canada Inc. (“4260848”)
	 
	 	c)	 	4260856 Canada Inc. (“4260856”)
	 
	 	d)	 	AV Aluminum Inc. (“Aluminum”)

(collectively, the “Canadian Guarantors”). The Canadian Guarantors and the Canadian Borrower are
collectively, the “Canadian Loan Parties”.

United States

	 	a)	 	Novelis Finances USA LLC (“Novelis Finances”)
	 
	 	b)	 	Novelis South America Holdings LLC (“Novelis South America”)
	 
	 	c)	 	Aluminum Upstream Holdings LLC (“Aluminum Upstream”)
	 
	 	d)	 	Novelis PAE Corporation (“Novelis PAE”)

(collectively, the “Delaware Loan Parties”). The Delaware Loan Parties and Novelis Corp. are
collectively, the “US Loan Parties”. The Delaware Loan Parties and the Canadian Loan Parties
are collectively the “Relevant Loan Parties” and each individually a “Relevant Loan Party”.

Foreign

	 	(a)	 	Novelis UK Ltd. (“Novelis UK”)
	 
	 	(b)	 	Novelis AG
	 
	 	(c)	 	Novelis Europe Holdings Ltd. (“Holdings UK”)
	 
	 	(d)	 	Novelis Deutschland GMBH (“Novelis GMBH”)
	 
	 	(e)	 	Novelis Switzerland SA
	 
	 	(f)	 	Novelis Technology AG (“Technology”)
	 
	 	(g)	 	Novelis Aluminum Holding Company (“NAHC”) 
	 
	 	(h)	 	Novelis Do Brasil Ltda. (“Novelis Brasil”)

(collectively, the “Foreign Loan Parties”). The US Loan Parties, the Canadian Loan Parties, Novelis
LP and the Foreign Loan Parties are collectively, the “Loan Parties” and individually, a “Loan
Party”.

 

 

SCHEDULE B

Documents

Canada

	 	(a)	 	a Guarantee made by each of the Canadian Loan Parties and Novelis No. 1
Limited Partnership (“Novelis LP”) in favour of the Collateral Agent for the
benefit of the Secured Parties;
	 
	 	(b)	 	a Security Agreement made by the Canadian Borrower and each of the
Canadian Guarantors and Novelis LP in favour of the Collateral Agent for the
benefit of the Secured Parties (the “Ontario GSA”);
	 
	 	(c)	 	a Demand Debenture made by the Canadian Borrower in favour of the Collateral
Agent for the benefit of the Secured Parties (the
“Debenture”);
	 
	 	(d)	 	a Debenture Delivery Agreement made by the Canadian Borrower in favour of
the Collateral Agent for the benefit of the Secured Parties;
	 
	 	(e)	 	a Blocked Account Control Agreement between Royal Bank of Canada, the Canadian
Borrower, the Collateral Agent and UBS AG Stamford Branch; and
	 
	 	(f)	 	a Deposit Account Control Agreement among Citibank Canada, LaSalle Business
Credit LLC, UBS AG, Stamford Branch and Novelis Corporation;
	 
	 	(g)	 	a Deed of Hypothec made by the Canadian Borrower in favour of the Collateral
Agent acting as fonde de pouvoir of the bondholders (as defined therein);
	 
	 	(h)	 	a Bond made by the Canadian Borrower in favour of the Collateral Agent
for the benefit of the Secured Parties;
	 
	 	(i)	 	a Bond Pledge Agreement made by the Canadian Borrower in favour of
the Collateral Agent for the benefit of the Secured Parties; and
	 
	 	(j)	 	a Deed of Hypothec made by Novelis LP in favour of the Collateral
Agent acting as fonde de pouvoir of the bondholders (as defined therein).

The documents listed in items (a) through (c) are collectively referred to as the “Ontario
Security Documents”. The documents listed in items (a) though (f) are collectively referred
to as the “Ontario Documents”.

United States

	 	(a)	 	an Intercreditor Agreement made between UBS AG, Stamford Branch, in its
capacity as Term Loan Administrative Agent and Term Loan Collateral Agent, LaSalle
Business Credit LLC in its capacity as collateral agent under the Revolving Credit
Agreement and the Loan Parties (the “Intercreditor Agreement”)

	 	(b)	 	a Contribution, Intercompany, Contracting and Offset Agreement made between the
Loan Parties;

 

 - 2 - 

	 	(c)	 	a Subordination Agreement made between the Loan Parties;

	 	(d)	 	a Security Agreement made by the Canadian Borrower and the US Loan Parties
in favour of the Collateral Agent for the benefit of the Lenders (the “US Security
Agreement”);

	 	(e)	 	a Patent Security Agreement made by Novelis Corp. and the Canadian
Borrower in favour of the Collateral Agent for the benefit of the Lenders (the
“Patent Security Agreement”)

	 	(f)	 	a Trademark Security Agreement made by Novelis Corp. and the Canadian
Borrower in favour of the Collateral Agent for the benefit of the Lenders (the
“Trademark Security Agreement”);

	 	(g)	 	an Intellectual Property Agreement made by Cast house in favour of the
Collateral Agent for the benefit of the Lenders;

	 	(h)	 	an Amended, Restated and Consolidated Mortgage, Assignment of Leases and Rents,
Security Agreement and Fixture Filing made by Novelis Corp. in favour of the
Collateral Agent for the benefit of the Lenders and in favour of LaSalle Business
Credit LLC in its capacity as collateral agent under the Revolving Credit Agreement
with respect to the property located in Oswego County, New York (the “NY
Mortgage”);

	 	(i)	 	a Deposit Account Control Agreement among Citibank Delaware,
LaSalle Business Credit LLC, UBS AG, Stamford Branch and Novelis Corporation;

	 	(j)	 	a Deposit Account Control Agreement among Bank of America, N.A.,
LaSalle Business Credit LLC, UBS AG, Stamford Branch and Novelis Corporation; and

	 	(k)	 	a Deposit Account Control Agreement among National City Bank,
LaSalle Business Credit LLC, UBS AG, Stamford Branch and Novelis Corporation.

The documents listed in items to (d) through (g) are collectively referred to as the “US
Security Documents”. The documents listed in items (a) through (k) and the Credit Agreement
are collectively referred to as the “NY Documents”. The U.S. Security Documents and the
Ontario Security Documents are collectively referred to as the “Security Documents”. The
Ontario Documents and the NY Documents are collectively referred to as the “Domestic
Documents”.

Foreign

	 	(a)	 	a Share Kun-Pledge Agreement made by 4260848 and 4260856 in favour of
the Collateral Agent for the benefit of the Lenders (governed by Korean law);
	 
	 	(b)	 	a Share Mortgage made between the Canadian Borrower and the Collateral Agent
with respect to the shares of Holdings UK (governed by English law);
	 
	 	(c)	 	a Security Trust Deed made by the Canadian Borrower, among others, in favour
of the Collateral Agent for the benefit of the Lenders (governed by English Law);
	 
	 	(d)	 	a Quotas Pledge Agreement made by the Canadian Borrower in favour of the
Collateral Agent for the benefit of the Lenders with respect to the quotas of Novelis
Do Brasil Ltda (governed by Brazilian law); and

 

 - 3 - 

	 	(e)	 	a First Priority Pledge Agreement made by the Canadian Borrower, among others, in
favour of the Collateral Agent for the benefit of the lenders with respect to the shares of
Novelis Lamines France, Novelis Foil France and Novelis PAE SAS (governed by French law).

 

 

SCHEDULE C

Searches and Registrations

LIEN SEARCH RESULTS

 

 

SCHEDULE C

REGISTRATIONS:

We have made the registrations under the PPSA against the following Loan Parties as follows:

1. Novelis Inc, as indicated at item 1 of Appendix A;

2. 4260848 Canada Inc., as indicated at item 1 of Appendix B;

3. 4260856 Canada Inc., as indicated at item 1 of Appendix C;

4. Novelis Cast House Technology Ltd., as indicated at item 1 of Appendix D;

5. Novelis No. 1 Limited Partnership, as indicated at item 1 of Appendix E and item 2 of Appendix
B; and

6. AV Aluminum Inc., as indicated at item 1 of Appendix F.

We have examined copies of the UCC-1 Financing Statements in favor of the Collateral Agent naming
the following entities as debtors, to be filed with the Secretary of State of Delaware:

1. Novelis Finances USA LLC

2. Novelis South America Holdings LLC

3. Aluminum Upstream Holdings LLC

4. Novelis PAE Corporation

SEARCHES:

We made searches or inquiries for:

Ontario

	1.	 	Security or other interests in the personal property registered under the Personal
Property Security Act (Ontario) as of June 27, 2007 for the following:

	 	-	 	Novelis Inc. — see attached Appendix A
	 
	 	-	 	Arcustarget Inc. — clear
	 
	 	-	 	4260848 Canada Inc. — see attached Appendix B
	 
	 	-	 	4260856 Canada Inc. — see attached Appendix C
	 
	 	-	 	Novelis Cast House Technology Ltd. — see attached Appendix D 
	 
	 	-	 	Cast House Technology Ltd. — see attached Appendix D 
	 
	 	-	 	Novelis No. 1 Limited Partnership — see attached Appendix E 
	 
	 	-	 	Societe En Commandite Novelis No. 1 — see attached Appendix E
	 
	 	-	 	Novelis No. 1 Limited Partnership Societe En Commandite Novelis No. 1 — see
attached Appendix E
	 
	 	-	 	Societe En Commandite Novelis No. 1 Novelis No. 1 Limited Partnership — see attached
Appendix E

 

 

	 	-	 	AV Aluminum Inc. — see attached Appendix F
	 
	 	-	 	6703534 Canada Limited — clear

	2.	 	Notices of intention to give security under Section 427 of the Bank Act (Canada) registered
in the Bank of Canada at Toronto, Ontario as of June 25, 2007:

	 	-	 	Novelis Inc. — clear
	 
	 	-	 	Arcustarget Inc. — clear
	 
	 	-	 	4260848 Canada Inc. — clear
	 
	 	-	 	4260856 Canada Inc. — clear
	 
	 	-	 	Novelis Cast House Technology Ltd. — clear
	 
	 	-	 	Cast House Technology Ltd. — clear
	 
	 	-	 	Novelis No. 1 Limited Partnership — clear
	 
	 	-	 	Societe En Commandite Novelis No. 1 — clear
	 
	 	-	 	AV Aluminum Inc — clear
	 
	 	-	 	6703534 Canada Limited — clear

	3.	 	Judgments or Executions filed in the City of Toronto as of June 25, 2007:

	 	-	 	Novelis Inc. — clear
	 
	 	-	 	Arcustarget Inc. — clear
	 
	 	-	 	4260848 Canada Inc. — clear
	 
	 	-	 	4260856 Canada Inc. — clear
	 
	 	-	 	Novelis Cast House Technology Ltd. — clear
	 
	 	-	 	Cast House Technology Ltd. — clear
	 
	 	-	 	Novelis No. 1 Limited Partnership — clear
	 
	 	-	 	Societe En Commandite Novelis No. 1 — clear
	 
	 	-	 	AV Aluminum Inc — clear
	 
	 	-	 	6703534 Canada Limited — clear

	4.	 	Judgments or Executions filed in (i) the County of Frontenac (Kingston), (ii) Regional
Municipality of Peel (Brampton) and (iii) County of Wellington (Guelph) as of June 25, 2007:

	 	-	 	Novelis Inc. — clear
	 
	 	-	 	Arcustarget Inc. — clear
	 
	 	-	 	4260848 Canada Inc. — clear

	 
	 	-	 	4260856 Canada Inc. — clear
	 
	 	-	 	Novelis Cast House Technology Ltd. — clear
	 
	 	-	 	Cast House Technology Ltd. — clear
	 
	 	-	 	Novelis No. 1 Limited Partnership — clear
	 
	 	-	 	Societe En Commandite Novelis No. 1 — clear
	 
	 	-	 	AV Aluminum Inc — clear
	 
	 	-	 	6703534 Canada Limited — clear

	5.	 	Assignments or proceedings under the Bankruptcy and Insolvency Act (Canada) as of June 20,
2007 recorded in the office of the Official Receiver:

	 	-	 	Novelis Inc. — clear
	 
	 	-	 	Arcustarget Inc. — clear
	 
	 	-	 	4260848 Canada Inc. — clear
	 
	 	-	 	4260856 Canada Inc. — clear

 

 

	 	-	 	Novelis Cast House Technology Ltd. — clear
	 
	 	-	 	Cast House Technology Ltd. — clear
	 
	 	-	 	Novelis No. 1 Limited Partnership — clear
	 
	 	-	 	Societe En Commandite Novelis No. 1 — clear
	 
	 	-	 	AV Aluminum Inc. — clear
	 
	 	-	 	6703534 Canada Limited — clear

 

 

Appendix A

Personal Property Security Act (“PPSA”)

We obtained a certificate from the Registrar of Personal Property Security with respect to Novelis
Inc. (file currency: June 27, 2007) which discloses the following financing statements and
financing change statements filed under the PPSA.

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	Registration/	 	 	 	 
	 	 	 	 	 	 	 	 	File No. and	 	Renewal	 	 	 	 
	 	 	Page	 	 	 	 	 	Registration No./	 	Period	 	Collateral	 	 
	No.	 	No.	 	Debtor(s)	 	Secured Party(ies)	 	Date of Registration	 	(years)	 	Classification	 	Comments
	1
	 	2	 	NOVELIS INC.	 	UBS AG, STAMFORD	 	636803406	 	9 YEARS	 	INVENTORY,	 	N/A
	 
	 	 	 	3399 PEACHTREE ROAD,	 	BRANCH	 	20070628145715301276	 	 	 	EQUIPMENT,	 	 
	 
	 	 	 	NE, SUITE 1500	 	677 WASHINGTON	 	(JUNE 28, 2007)	 	 	 	ACCOUNTS,	 	 
	 
	 	 	 	ATLANTA, GEORGIA	 	BOULEVARD	 	 	 	 	 	OTHER,	 	 
	 
	 	 	 	30326	 	STAMFORD,	 	 	 	 	 	MOTOR	 	 
	 
	 	 	 	 	 	CONNECTICUT	 	 	 	 	 	VEHICLE	 	 
	 
	 	 	 	 	 	068901	 	 	 	 	 	INCLUDED	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	2
	 	3	 	NOVELIS INC.	 	LASALLE BUSINESS	 	636803469	 	7 YEARS	 	INVENTORY,	 	N/A
	 
	 	 	 	3399 PEACHTREE ROAD,	 	CREDIT, LLC	 	20070628145715301282	 	 	 	EQUIPMENT,	 	 
	 
	 	 	 	NE, SUITE 1500	 	135 SOUTH LASALLE	 	(JUNE 28, 2007)	 	 	 	ACCOUNTS,	 	 
	 
	 	 	 	ATLANTA, GEORGIA	 	STREET, SUITE 425	 	 	 	 	 	OTHER,	 	 
	 
	 	 	 	30326	 	CHICAGO, ILLINOIS	 	 	 	 	 	MOTOR	 	 
	 
	 	 	 	 	 	60603	 	 	 	 	 	VEHICLE	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	INCLUDED	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	3
	 	4-6	 	NOVELIS NO. 1 LIMITED	 	CITICORP NORTH	 	635400351	 	10 YEARS	 	INVENTORY,	 	N/A
	 
	 	 	 	PARTNERSHIP SOCIETE	 	 AMERICA, INC.	 	20070517092718626018	 	 	 	EQUIPMENT,	 	 
	 
	 	 	 	EN COMMANDITE	 	388 GREENWICH STREET	 	(MAY 17, 2007)	 	 	 	ACCOUNTS,	 	 
	 
	 	 	 	NOVELIS NO. 1	 	19TH FLOOR	 	 	 	 	 	OTHER	 	 
	 
	 	 	 	2040 FAY STREET	 	NEW YORK, NEW YORK	 	 	 	 	 	MOTOR	 	 
	 
	 	 	 	JONQUIERE, QUEBEC	 	10013	 	 	 	 	 	VEHICLE	 	 
	 
	 	 	 	G7S 4K6	 	 	 	 	 	 	 	INCLUDED	 	 

 

- 5 -

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	Registration/	 	 	 	 
	 	 	 	 	 	 	 	 	File No. and	 	Renewal	 	 	 	 
	 	 	Page	 	 	 	 	 	Registration No./	 	Period	 	Collateral	 	 
	No.	 	No.	 	Debtor(s)	 	Secured Party(ies)	 	Date of Registration	 	(years)	 	Classification	 	Comments
	 
	 	 	 	SOCIETE EN	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	COMMANDITE NOVELIS

NO. 1 NOVELIS NO. 1

LIMITED PARTNERSHIP	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	2040 FAY STREET	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	JONQUIERE, QUEBEC	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	G7S 4K6	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	NOVELIS NO. 1 LIMITED	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	PARTNERSHIP	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	2040 FAY STREET	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	JONQUIERE, QUEBEC	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	G7S 4K6	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	SOCIETE EN	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	COMMANDITE NOVELIS	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	NO. 1	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	2040 FAY STREET	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	JONQUIERE, QUEBEC	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	G7S 4K6	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	NOVELIS INC.	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	191 EVANS AVENUE	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	TORONTO, ONTARIO	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	M8Z 1J5	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	4260848 CANADA INC.	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	191 EVANS AVENUE	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	TORONTO, ONTARIO	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	M8Z 1J5	 	 	 	 	 	 	 	 	 	 

 

- 6 -

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	Registration/	 	 	 	 
	 	 	 	 	 	 	 	 	File No. and	 	Renewal	 	 	 	 
	 	 	Page	 	 	 	 	 	Registration No./	 	Period	 	Collateral	 	 
	No.	 	No.	 	Debtor(s)	 	Secured Party(ies)	 	Date of Registration	 	(years)	 	Classification	 	Comments
	4
	 	7-8	 	NOVELIS INC.	 	IBM CANADA LIMITED -	 	629071218	 	4 YEARS	 	EQUIPMENT,	 	ALL PRESENT AND AFTER
	 
	 	 	 	191 EVANS AVENUE	 	PPSA ADMINISTRATOR	 	20060920145815303604	 	 	 	ACCOUNTS,	 	ACQUIRED GOODS SUPPLIED,
	 
	 	 	 	TORONTO, ONTARIO	 	3600 STEELES AVENUE	 	(SEPTEMBER 20, 2006)	 	 	 	OTHER	 	LEASED OR FINANCED BY THE
	 
	 	 	 	M8Z 1J5	 	EAST F4	 	 	 	 	 	 	 	SECURED PARTY, INCLUDING
	 
	 	 	 	 	 	MARKHAM, ONTARIO	 	 	 	 	 	 	 	BUT NOT LIMITED TO, ALL
	 
	 	 	 	 	 	L3R 9Z7	 	 	 	 	 	 	 	OFFICE MACHINES, OFFICE
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	EQUIPMENT, COMPUTER
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	HARDWARE, SOFTWARE AND
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	ALL ANCILLARY PRODUCTS
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	RELATED THERETO, AND ALL
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	UPGRADES, ADDITIONS AND
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	ACCESSIONS THERETO AND
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	THEREON AND ALL PROCEEDS
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	THEREFROM OF EVERY KIND
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	AND DESCRIPTION.
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5
	 	9	 	NOVELIS INC.	 	TENNANT FINANCIAL	 	628296453	 	6 YEARS	 	EQUIPMENT,	 	N/A
	 
	 	 	 	1 LAPPAN’S LANE	 	SERVICES	 	20060824112340431762	 	 	 	OTHER	 	 
	 
	 	 	 	KINGSTON, ONTARIO	 	2300 MEADOWVALE	 	(AUGUST 24, 2006)	 	 	 	 	 	 
	 
	 	 	 	K7L 4Z5	 	BLVD., SUITE 200	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	MISSISSAUGA, ONTARIO	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	L5N 5P9	 	 	 	 	 	 	 	 

 

- 7 -

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	Registration/	 	 	 	 
	 	 	 	 	 	 	 	 	File No. and	 	Renewal	 	 	 	 
	 	 	Page	 	 	 	 	 	Registration No./	 	Period	 	Collateral	 	 
	No.	 	No.	 	Debtor(s)	 	Secured Party(ies)	 	Date of Registration	 	(years)	 	Classification	 	Comments
	6
	 	10-11	 	NOVELIS INC.	 	WAJAX FINANCE LTD.	 	626197239	 	4 YEARS	 	EQUIPMENT,	 	N/A
	 
	 	 	 	191 EVANS AVENUE	 	5035 SOUTH SERVICE	 	20060615144116165004	 	 	 	MOTOR	 	 
	 
	 	 	 	TORONTO, ONTARIO	 	ROAD	 	(JUNE 15, 2006)	 	 	 	VEHICLE	 	 
	 
	 	 	 	M8Z 1J5	 	BURLINGTON, ONTARIO	 	 	 	 	 	INCLUDED	 	 
	 
	 	 	 	 	 	L7R 4C8	 	AMENDMENT	 	 	 	 	 	TO ADD A MOTOR VEHICLE
	 
	 	 	 	 	 	 	 	20060621144216165271	 	 	 	 	 	DESCRIPTION TO LINE 11 OF
	 
	 	 	 	 	 	 	 	(JUNE 21, 2006)	 	 	 	 	 	REGISTRATION NUMBER
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	20060615144116165004
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	YEAR: 1999
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	MAKE: HYSTER
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	MODEL: S120XL
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	V.I.N.: D004D07798W
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	7
	 	12-13	 	NOVELIS INC.	 	CHRYSLER FINANCIAL	 	625510323	 	3 YEARS	 	EQUIPMENT,	 	AMOUNT SECURED: $31,907
	 
	 	 	 	1 LAPPANS LANE	 	2425 MATHESON BLVD.	 	20060525195215311506	 	 	 	OTHER,	 	YEAR: 2006
	 
	 	 	 	KINGSTON, ONTARIO	 	EAST, 3RD FLOOR	 	(MAY 25, 2006)	 	 	 	MOTOR	 	MAKE: JEEP
	 
	 	 	 	K7L 4Z5	 	MISSISSAUGA, ONTARIO	 	 	 	 	 	VEHICLE	 	MODEL: LIBERTY
	 
	 	 	 	 	 	L4W 5N7	 	 	 	 	 	INCLUDED	 	V.I.N.: 1J4GL48K96W249108
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	DAIMLERCHRYSLER	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	FINANCIAL SERVICES	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	CANADA INC.	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	2425 MATHESON BLVD.	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	EAST, 3RD FLOOR	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	MISSISSAUGA, ONTARIO	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	L4W 5N7	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	8
	 	14	 	NOVELIS INC.	 	XEROX CANADA LTD.	 	624261483	 	4 YEARS	 	EQUIPMENT,	 	N/A
	 
	 	 	 	1 LAPPANS LANE	 	33 BLOOR STREET EAST	 	20060413100114626638	 	 	 	OTHER	 	 
	 
	 	 	 	KINGSTON, ONTARIO	 	3RD FLOOR	 	(APRIL 13, 2006)	 	 	 	 	 	 
	 
	 	 	 	K7L 4Z5	 	TORONTO, ONTARIO	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	M4W 3H1	 	 	 	 	 	 	 	 

 

- 8 -

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	Registration/	 	 	 	 
	 	 	 	 	 	 	 	 	File No. and	 	Renewal	 	 	 	 
	 	 	Page	 	 	 	 	 	Registration No./	 	Period	 	Collateral	 	 
	No.	 	No.	 	Debtor(s)	 	Secured Party(ies)	 	Date of Registration	 	(years)	 	Classification	 	Comments
	9
	 	15-16	 	NOVELIS INC.	 	DE LAGE LANDEN	 	621564039	 	5 YEARS	 	EQUIPMENT,	 	ALL GOODS SUPPLIED BY THE
	 
	 	 	 	945 PRINCESS STREET	 	FINANCIAL SERVICES	 	20051223132870298463	 	 	 	OTHER	 	SECURED PARTY PURSUANT TO
	 
	 	 	 	KINGSTON, ONTARIO	 	CANADA INC.	 	(DECEMBER 23, 2005)	 	 	 	 	 	A LEASE BETWEEN THE DEBTOR
	 
	 	 	 	K7L 5L9	 	100-1235 NORTH SERVICE	 	 	 	 	 	 	 	AND THE SECURED PARTY,
	 
	 	 	 	 	 	ROAD WEST	 	 	 	 	 	 	 	TOGETHER WITH ALL PARTS
	 
	 	 	 	 	 	OAKVILLE, ONTARIO	 	 	 	 	 	 	 	AND ACCESSORIES THERETO
	 
	 	 	 	 	 	L6M 2W2	 	 	 	 	 	 	 	AND ACCESSION THERETO AND
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	ALL REPLACEMENTS OR
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	SUBSTITUTIONS FOR SUCH
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	GOODS AND PROCEEDS
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	THEREOF (PROCEEDS AS
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	DEFINED IN THE PERSONAL
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	PROPERTY SECURITY ACT
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	(ONTARIO)) AND ANY
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	INSURANCE PROCEEDS
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	RESULTING THERE FROM.

 

- 9 -

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	Registration/	 	 	 	 
	 	 	 	 	 	 	 	 	File No. and	 	Renewal	 	 	 	 
	 	 	Page	 	 	 	 	 	Registration No./	 	Period	 	Collateral	 	 
	No.	 	No.	 	Debtor(s)	 	Secured Party(ies)	 	Date of Registration	 	(years)	 	Classification	 	Comments
	10
	 	17-19	 	NOVELIS INC.	 	GE VEHICLE AND	 	621062946	 	5 YEARS	 	INVENTORY,	 	ALL PRESENT AND AFTER
	 
	 	 	 	3800 - 200 BAY STREET	 	EQUIPMENT LEASING	 	20051206111412542199	 	 	 	EQUIPMENT,	 	ACQUIRED MOTOR VEHICLES,
	 
	 	 	 	TORONTO, ONTARIO	 	5255 SOLAR DRIVE	 	(DECEMBER 6, 2005)	 	 	 	ACCOUNTS,	 	TRAILERS, AND GOODS OF
	 
	 	 	 	M5J 2Z4	 	MISSISSAUGA, ONTARIO	 	 	 	 	 	OTHER,	 	WHATEVER MAKE OR
	 
	 	 	 	 	 	L4W 5H6	 	 	 	 	 	MOTOR	 	DESCRIPTION, NOW OR
	 
	 	 	 	 	 	 	 	 	 	 	 	VEHICLE	 	HEREAFTER LEASED BY THE
	 
	 	 	 	 	 	 	 	 	 	 	 	INCLUDED	 	SECURED PARTY TO THE
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	DEBTOR, TOGETHER WITH ALL
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	ADDITIONS, REPLACEMENT
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	PARTS, ACCESSIONS,
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	ATTACHMENTS AND
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	IMPROVEMENTS THERETO, AND
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	ALL PROCEEDS THEREOF,
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	INCLUDING MONEY, CHATTEL
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	PAPER, INTANGIBLES, GOODS,
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	DOCUMENTS OF TITLE,
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	SECURITIES, SUBSTITUTIONS,
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	ACCOUNTS RECEIVABLE,
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	RENTAL AND LOAN
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	CONTRACTS, ALL PERSONAL
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	PROPERTY RETURNED, TRADED
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	IN OR REPOSSESSED AND ALL
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	INSURANCE PROCEEDS AND
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	ANY OTHER FORM OF PROCEEDS
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	THEREOF.

 

- 10 -

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	Registration/	 	 	 	 
	 	 	 	 	 	 	 	 	File No. and	 	Renewal	 	 	 	 
	 	 	Page	 	 	 	 	 	Registration No./	 	Period	 	Collateral	 	 
	No.	 	No.	 	Debtor(s)	 	Secured Party(ies)	 	Date of Registration	 	(years)	 	Classification	 	Comments
	11
	 	20-22	 	LYNNE MEARS	 	CHRYSLER FINANCIAL	 	618566337	 	3 YEARS	 	EQUIPMENT,	 	AMOUNT SECURED: $27,103
	 
	 	 	 	DATE OF BIRTH:	 	2425 MATHESON BLVD E.	 	20050902194815315044	 	 	 	OTHER,	 	NO FIXED MATURITY DATE
	 
	 	 	 	OCTOBER 16, 1972	 	3RD FL	 	(SEPTEMBER 2, 2005)	 	 	 	MOTOR	 	 
	 
	 	 	 	926 EDINBOROUGH CR	 	MISSISSAUGA, ONTARIO	 	 	 	 	 	VEHICLE	 	 
	 
	 	 	 	KINGSTON, ONTARIO	 	L4W 5N7	 	 	 	 	 	INCLUDED	 	 
	 
	 	 	 	K7P 2C5	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	DAIMLERCHRYSLER	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	SERVICES CANADA INC.	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	2425 MATHESON BLVD E.	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	3RD FL	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	MISSISSAUGA, ONTARIO	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	L4W 5N7	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	NOVELIS INC.	 	 	 	AMENDMENT	 	 	 	 	 	REMOVE DEBTOR FROM THE
	 
	 	 	 	1 LAPPANS LANE	 	 	 	20070323145415309402	 	 	 	 	 	REGISTRATION
	 
	 	 	 	KINGSTON, ONTARIO	 	 	 	(MARCH 23, 2007)	 	 	 	 	 	 
	 
	 	 	 	K7L 4Z5	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	12
	 	23	 	NOVELIS INC. 1188	 	CITICORP NORTH	 	611605296	 	10 YEARS	 	INVENTORY,	 	N/A
	 
	 	 	 	SHERBROOKE	 	AMERICA, INC., AS	 	20041223153018620300	 	 	 	EQUIPMENT,	 	 
	 
	 	 	 	STREET WEST	 	ADMINISTRATIVE AGENT	 	(DECEMBER 23, 2004)	 	 	 	ACCOUNTS,	 	 
	 
	 	 	 	MONTREAL, QUEBEC	 	390 GREENWICH STREET	 	 	 	 	 	OTHER,	 	 
	 
	 	 	 	H3A 3G2	 	NEW YORK, NY 10013	 	 	 	 	 	MOTOR	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	VEHICLE	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	INCLUDED	 	 

 

- 11 -

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	Registration/	 	 	 	 
	 	 	 	 	 	 	 	 	File No. and	 	Renewal	 	 	 	 
	 	 	Page	 	 	 	 	 	Registration No./	 	Period	 	Collateral	 	 
	No.	 	No.	 	Debtor(s)	 	Secured Party(ies)	 	Date of Registration	 	(years)	 	Classification	 	Comments
	13
	 	24-26	 	NOVELIS INC.	 	XEROX CANADA LTD.        	 	895711734	 	3 YEARS	 	EQUIPMENT,	 	N/A
	 
	 	 	 	1 LAPPANS LANE	 	5650 YONGE STREET        	 	20030624113517152013	 	 	 	OTHER	 	 
	 
	 	 	 	KINGSTON, ONTARIO	 	NORTH YORK, ONTARIO      	 	(JUNE 24, 2003)	 	 	 	 	 	 
	 
	 	 	 	K7K 6Y8	 	M2M 4G7	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 		 	AMENDMENT	 	 	 	 	 	TO AMEND DEBTOR’S NAME
	 
	 	 	 	 	 		 	20050324171114620028	 	 	 	 	 	FROM ALCAN INC. TO NOVELIS
	 
	 	 	 	 	 		 	(MARCH 24, 2005)	 	 	 	 	 	INC.
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 		 	RENEWAL	 	 	 	 	 	 
	 
	 	 	 	 	 		 	20050324171114620029	 	 	 	 	 	RENEWED FOR A PERIOD OF 2
	 
	 	 	 	 	 		 	(MARCH 24, 2005)	 	 	 	 	 	YEARS.

 

APPENDIX B

Personal Property Security Act (“PPSA”)

We
obtained a certificate from the Registrar of Personal Property
Security with respect to 4260848
Canada Inc. (file currency: June 27, 2007) which discloses the following financing statements and
financing change statements filed under the PPSA.

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	Registration/	 	 	 	 
	 	 	 	 	 	 	 	 	File No. and	 	Renewal	 	 	 	 
	 	 	Page	 	 	 	 	 	Registration No./	 	Period	 	Collateral	 	 
	No.	 	No.	 	Debtor(s)	 	Secured Party(ies)	 	Date of Registration	 	(years)	 	Classification	 	Comments
	1
	 	2	 	4260848 CANADA INC. 191 EVANS AVENUE	 	UBS AG, STAMFORD BRANCH	 	636803415
20070628145715301277	 	9 YEARS	 	INVENTORY,
 EQUIPMENT,	 	N/A
	 
	 	 	 	TORONTO, ONTARIO	 	677 WASHINGTON	 	(JUNE 28, 2007)	 	 	 	ACCOUNTS,	 	 
	 
	 	 	 	M8Z 1J5	 	BOULEVARD	 	 	 	 	 	OTHER,	 	 
	 
	 	 	 	 	 	STAMFORD,	 	 	 	 	 	MOTOR	 	 
	 
	 	 	 	 	 	CONNECTICUT	 	 	 	 	 	VEHICLE	 	 
	 
	 	 	 	 	 	068901	 	 	 	 	 	INCLUDED	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	2
	 	3-5	 	NOVELIS NO. 1 LIMITED	 	UBS AG, STAMFORD	 	636803442	 	9 YEARS	 	INVENTORY,	 	N/A
	 
	 	 	 	PARTNERSHIP	 	BRANCH	 	20070628145715301280	 	 	 	EQUIPMENT,	 	 
	 
	 	 	 	2040 FAY STREET	 	677 WASHINGTON	 	(JUNE 28, 2007)	 	 	 	ACCOUNTS,	 	 
	 
	 	 	 	JONQUIERE, QUEBEC	 	BOULEVARD	 	 	 	 	 	OTHER,	 	 
	 
	 	 	 	G7S 4K6	 	STAMFORD,	 	 	 	 	 	MOTOR	 	 
	 
	 	 	 	 	 	CONNECTICUT	 	 	 	 	 	VEHICLE	 	 
	 
	 	 	 	SOCIETE EN	 	068901	 	 	 	 	 	INCLUDED	 	 
	 
	 	 	 	COMMANDITE NOVELIS	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	NO. 1	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	2040 FAY STREET	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	JONQUIERE, QUEBEC	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	G7S 4K6	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	NOVELIS NO. 1 LIMITED	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	PARTNERSHIP SOCIETE	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	EN COMMANDITE	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	NOVELIS NO. 1	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	2040 FAY STREET	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	JONQUIERE, QUEBEC	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	G7S 4K6	 	 	 	 	 	 	 	 	 	 

 

- 13 -

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	Registration/	 	 	 	 
	 	 	 	 	 	 	 	 	File No. and	 	Renewal	 	 	 	 
	 	 	Page	 	 	 	 	 	Registration No./	 	Period	 	Collateral	 	 
	No.	 	No.	 	Debtor(s)	 	Secured Party(ies)	 	Date of Registration	 	(years)	 	Classification	 	Comments
	 
	 	 	 	SOCIETE EN	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	COMMANDITE NOVELIS	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	NO. 1 NOVELIS NO. 1 LIMITED PARTNERSHIP	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	2040 FAY STREET	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	JONQU1ERE, QUEBEC	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	G7S 4K6	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	4260848 CANADA INC.	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	191 EVANS AVENUE	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	TORONTO, ONTARIO	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	M8Z 1J5	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	3
	 	6	 	4260848 CANADA INC.	 	LASALLE BUSINESS	 	636803478	 	7 YEARS	 	INVENTORY,	 	N/A
	 
	 	 	 	191 EVANS AVENUE	 	CREDIT, LLC	 	20070628145715301283	 	 	 	EQUIPMENT,	 	 
	 
	 	 	 	TORONTO, ONTARIO	 	135 SOUTH LASALLE	 	(JUNE 28, 2007)	 	 	 	ACCOUNTS,	 	 
	 
	 	 	 	M8Z 1J5	 	STREET, SUITE 425	 	 	 	 	 	OTHER,	 	 
	 
	 	 	 	 	 	CHICAGO, ILLINOIS	 	 	 	 	 	MOTOR	 	 
	 
	 	 	 	 	 	60603	 	 	 	 	 	VEHICLE	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	INCLUDED	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	4
	 	7-9	 	NOVELIS NO. 1 LIMITED	 	LASALLE BUSINESS	 	636803505	 	7 YEARS	 	INVENTORY,	 	N/A
	 
	 	 	 	PARTNERSHIP	 	CREDIT, LLC	 	20070628145715301286	 	 	 	EQUIPMENT,	 	 
	 
	 	 	 	2040 FAY STREET	 	135 SOUTH LASALLE	 	(JUNE 28, 2007)	 	 	 	ACCOUNTS,	 	 
	 
	 	 	 	JONQUIERE, QUEBEC	 	STREET, SUITE 425	 	 	 	 	 	OTHER,	 	 
	 
	 	 	 	G7S 4K6	 	CHICAGO, ILLINOIS	 	 	 	 	 	MOTOR	 	 
	 
	 	 	 	 	 	60603	 	 	 	 	 	VEHICLE	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	INCLUDED	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	SOCIETE EN	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	COMMANDITE NOVELIS	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	NO. 1	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	2040 FAY STREET	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	JONQUIERE, QUEBEC	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	G7S 4K6	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	NOVELIS NO. 1 LIMITED	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	PARTNERSHIP SOCIETE	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	EN COMMANDITE	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	NOVELIS NO. 1	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	2040 FAY STREET	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	JONQUIERE, QUEBEC	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	G7S 4K6	 	 	 	 	 	 	 	 	 	 

 

- 14 -

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	Registration/	 	 	 	 
	 	 	 	 	 	 	 	 	File No. and	 	Renewal	 	 	 	 
	 	 	Page	 	 	 	 	 	Registration No./	 	Period	 	Collateral	 	 
	No.	 	No.	 	Debtor(s)	 	Secured Party(ies)	 	Date of Registration	 	(years)	 	Classification	 	Comments
	 
	 	 	 	SOCIETE EN	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	COMMANDITE NOVELIS	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	NO. 1 NOVELIS NO. 1	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	LIMITED PARTNERSHIP	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	2040 FAY STREET	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	JONQU1ERE, QUEBEC	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	G7S 4K6	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	4260848 CANADA INC.	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	191 EVANS AVENUE	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	TORONTO, ONTARIO	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	M8Z 1J5	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5
	 	10-12	 	NOVELIS NO. 1 LIMITED	 	CITICORP NORTH	 	635400351	 	10 YEARS	 	INVENTORY,	 	N/A
	 
	 	 	 	PARTNERSHIP SOCIETE	 	AMERICA, INC.	 	20070517092718626018	 	 	 	EQUIPMENT,	 	 
	 
	 	 	 	EN COMMANDITE	 	388 GREENWICH STREET	 	(MAY 17, 2007)	 	 	 	ACCOUNTS,	 	 
	 
	 	 	 	NOVELIS NO. 1	 	19TH FLOOR	 	 	 	 	 	OTHER	 	 
	 
	 	 	 	2040 FAY STREET	 	NEW YORK, NEW YORK	 	 	 	 	 	MOTOR	 	 
	 
	 	 	 	JONQUIERE, QUEBEC	 	10013	 	 	 	 	 	VEHICLE	 	 
	 
	 	 	 	G7S 4K6	 	 	 	 	 	 	 	INCLUDED	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	SOCIETE EN	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	COMMANDITE NOVELIS	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	NO. 1 NOVELIS NO. 1	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	LIMITED PARTNERSHIP	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	2040 FAY STREET	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	JONQUIERE, QUEBEC	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	G7S 4K6	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	NOVELIS NO. 1 LIMITED	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	PARTNERSHIP	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	2040 FAY STREET	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	JONQUIERE, QUEBEC	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	G7S 4K6	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	SOCIETE EN	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	COMMANDITE NOVELIS	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	NO. 1	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	2040 FAY STREET	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	JONQUIERE, QUEBEC	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	G7S 4K6	 	 	 	 	 	 	 	 	 	 

 

- 15 -

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	Registration/	 	 	 	 
	 	 	 	 	 	 	 	 	File No. and	 	Renewal	 	 	 	 
	 	 	Page	 	 	 	 	 	Registration/	 	Period	 	Collateral	 	 
	No.	 	No.	 	Debtor(s)	 	Secured Party(ies)	 	Date of Registration	 	(years)	 	Classification	 	Comments
	 
	 	 	 	NOVELIS INC.	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	191 EVANS AVENUE	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	TORONTO, ONTARIO	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	M8Z 1J5	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	4260848 CANADA INC.	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	191 EVANS AVENUE	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	TORONTO, ONTARIO	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	M8Z 1J5	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	6
	 	13-14	 	4260848 CANADA INC.	 	CITICORP NORTH	 	611605332	 	10 YEARS	 	INVENTORY,	 	N/A
	 
	 	 	 	SUITE 3800, ROYAL	 	AMERICA, INC., AS	 	20041223153218620301	 	 	 	EQUIPMENT,	 	 
	 
	 	 	 	BANK PLAZA, SOUTH	 	ADMINISTRATIVE AGENT	 	(DECEMBER 23, 2004)	 	 	 	ACCOUNTS,	 	 
	 
	 	 	 	TOWER	 	390 GREENWICH STREET	 	 	 	 	 	OTHER,	 	 
	 
	 	 	 	200 BAY STREET	 	NEW YORK, NY	 	 	 	 	 	MOTOR	 	 
	 
	 	 	 	P.O BOX 84	 	10013	 	 	 	 	 	VEHICLE	 	 
	 
	 	 	 	TORONTO, ONTARIO	 	 	 	 	 	 	 	INCLUDED	 	 
	 
	 	 	 	M5J 2Z4	 	 	 	 	 	 	 	 	 	 

 

APPENDIX C

Personal Property Security Act (“PPSA”)

We obtained a certificate from the Registrar of Personal Property Security with respect to 4260856
Canada Inc. (file currency: June 27, 2007) which discloses the following financing statements and
financing change statements filed under the PPSA.

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	Registration/	 	 	 	 
	 	 	 	 	 	 	 	 	File No. and	 	Renewal	 	 	 	 
	 	 	Page	 	 	 	 	 	Registration No./	 	Period	 	Collateral	 	 
	No.	 	No.	 	Debtor(s)	 	Secured Party(ies)	 	Date of Registration	 	(years)	 	Classification	 	Comments
	1
	 	2	 	4260856 CANADA INC.	 	UBS AG, STAMFORD	 	636803424	 	9 YEARS	 	INVENTORY,	 	N/A
	 
	 	 	 	191 EVANS AVENUE	 	BRANCH	 	20070628145715301278	 	 	 	EQUIPMENT,	 	 
	 
	 	 	 	TORONTO, ONTARIO	 	677 WASHINGTON	 	(JUNE 28, 2007)	 	 	 	ACCOUNTS,	 	 
	 
	 	 	 	M8Z 1J5	 	BOULEVARD	 	 	 	 	 	OTHER,	 	 
	 
	 	 	 	 	 	STAMFORD,	 	 	 	 	 	MOTOR	 	 
	 
	 	 	 	 	 	CONNECTICUT.	 	 	 	 	 	VEHICLE	 	 
	 
	 	 	 	 	 	068901	 	 	 	 	 	INCLUDED	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	2
	 	3	 	4260856 CANADA INC.	 	LASALLE BUSINESS	 	636803487	 	7 YEARS	 	INVENTORY,	 	N/A
	 
	 	 	 	191 EVANS AVENUE	 	CREDIT, LLC	 	20070628145715301284	 	 	 	EQUIPMENT,	 	 
	 
	 	 	 	TORONTO, ONTARIO	 	135 SOUTH LASALLE	 	(JUNE 28, 2007)	 	 	 	ACCOUNTS,	 	 
	 
	 	 	 	M8Z 1J5	 	STREET, SUITE 425	 	 	 	 	 	OTHER,	 	 
	 
	 	 	 	 	 	CHICAGO, ILLINOIS	 	 	 	 	 	MOTOR	 	 
	 
	 	 	 	 	 	60603	 	 	 	 	 	VEHICLE	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	INCLUDED	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	3
	 	4-5	 	4260856 CANADA INC.	 	CITICORP NORTH	 	611605377	 	10 YEARS	 	INVENTORY,	 	N/A
	 
	 	 	 	SUITE 3800, ROYAL	 	AMERICA, INC., AS	 	20041223153418620302	 	 	 	EQUIPMENT,	 	 
	 
	 	 	 	BANK PLAZA, SOUTH	 	ADMINISTRATIVE AGENT	 	(DECEMBER 23, 2004)	 	 	 	ACCOUNTS,	 	 
	 
	 	 	 	TOWER	 	390 GREENWICH STREET	 	 	 	 	 	OTHER,	 	 
	 
	 	 	 	200 BAY STREET	 	NEW YORK, NY	 	 	 	 	 	MOTOR	 	 
	 
	 	 	 	P.O BOX 84	 	10013	 	 	 	 	 	VEHICLE	 	 
	 
	 	 	 	TORONTO, ONTARIO	 	 	 	 	 	 	 	INCLUDED	 	 
	 
	 	 	 	M5J 2Z4	 	 	 	 	 	 	 	 	 	 

 

APPENDIX D

Personal Property Security Act (“PPSA”)

We obtained a certificate from the Registrar of Personal Property Security with respect to Novelis
Cast House Technology Ltd. (file currency: June 27, 2007) which discloses the following financing
statements and financing change statements filed under the PPSA.

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	Registration/	 	 	 	 
	 	 	 	 	 	 	 	 	File No. and	 	Renewal	 	 	 	 
	 	 	Page	 	 	 	 	 	Registration No./	 	Period	 	Collateral	 	 
	No.	 	No.	 	Debtor(s)	 	Secured Party(ies)	 	Date of Registration	 	(years)	 	Classification	 	Comments
	1
	 	2	 	NOVELIS CAST HOUSE	 	UBS AG, STAMFORD	 	636803433	 	9 YEARS	 	INVENTORY,	 	N/A
	 
	 	 	 	TECHNOLOGY LTD.	 	BRANCH	 	20070628145715301279	 	 	 	EQUIPMENT,	 	 
	 
	 	 	 	191 EVANS AVENUE	 	677 WASHINGTON	 	(JUNE 28, 2007)	 	 	 	ACCOUNTS,	 	 
	 
	 	 	 	TORONTO, ONTARIO	 	BOULEVARD	 	 	 	 	 	OTHER,	 	 
	 
	 	 	 	M8Z 1J5	 	STAMFORD,	 	 	 	 	 	MOTOR	 	 
	 
	 	 	 	 	 	CONNECTICUT	 	 	 	 	 	VEHICLE	 	 
	 
	 	 	 	 	 	068901	 	 	 	 	 	INCLUDED	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	2
	 	3	 	NOVELIS CAST HOUSE	 	LASALLE BUSINESS	 	636803496	 	7 YEARS	 	INVENTORY,	 	N/A
	 
	 	 	 	TECHNOLOGY LTD.	 	CREDIT, LLC	 	20070628145715301285	 	 	 	EQUIPMENT,	 	 
	 
	 	 	 	191 EVANS AVENUE	 	135 SOUTH LASALLE	 	(JUNE 28, 2007)	 	 	 	ACCOUNTS,	 	 
	 
	 	 	 	TORONTO, ONTARIO	 	STREET, SUITE 425	 	 	 	 	 	OTHER,	 	 
	 
	 	 	 	M8Z 1J5	 	CHICAGO, ILLINOIS	 	 	 	 	 	MOTOR	 	 
	 
	 	 	 	 	 	60603	 	 	 	 	 	VEHICLE	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	INCLUDED	 	 
	 
	3
	 	4-5	 	NOVELIS CAST HOUSE	 	CITICORP NORTH	 	611605386	 	10 YEARS	 	INVENTORY,	 	N/A
	 
	 	 	 	TECHNOLOGY LTD.	 	AMERICA, INC., AS	 	20041223153618620303	 	 	 	EQUIPMENT,	 	 
	 
	 	 	 	6711 MISSISSAUGA	 	ADMINISTRATIVE AGENT	 	(DECEMBER 23, 2004)	 	 	 	ACCOUNTS,	 	 
	 
	 	 	 	ROAD, SUITE 708	 	390 GREENWICH STREET	 	 	 	 	 	OTHER,	 	 
	 
	 	 	 	MISSISSAUGA, ONTARIO L5N 2W3	 	NEW YORK, NY 10013	 	AMENDMENT 20050107142518620896 (JANUARY 7, 2005)	 	 	 	MOTOR VEHICLE INCLUDED	 	TO CHANGE DEBTOR NAME ON LINE 3 OF REGISTRATION NO. 20041223153618620303 TO NOVELIS CAST HOUSE TECHNOLOGY LTD.
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	
	 
	 	 	 		 		 		 	 	 		 	
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	
	 
	 	 	 	 	 	 	 		 	 	 		 	
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	

 

APPENDIX E

Personal Property Security Act (“PPSA”)

We obtained a certificate from the Registrar of Personal Property Security with respect to Novelis
No. 1 Limited Partnership Societe En Commandite Novelis No. 1 (file currency: June 27, 2007) which
discloses the following financing statements and financing change statements filed under the PPSA.

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	Registration/	 	 	 	 
	 	 	 	 	 	 	 	 	File No. and	 	Renewal	 	 	 	 
	 	 	Page	 	 	 	 	 	Registration No./	 	Period	 	Collateral	 	 
	No.	 	No.	 	Debtor(s)	 	Secured Party(ies)	 	Date of Registration	 	(years)	 	Classification	 	Comments
	1
	 	2-4	 	NOVELIS NO. 1 LIMITED	 	UBS AG, STAMFORD	 	636803442	 	9 YEARS	 	INVENTORY,	 	N/A
	 
	 	 	 	PARTNERSHIP	 	BRANCH	 	20070628145715301280	 	 	 	EQUIPMENT,	 	 
	 
	 	 	 	2040 FAY STREET	 	677 WASHINGTON	 	(JUNE 28, 2007)	 	 	 	ACCOUNTS,	 	 
	 
	 	 	 	JONQUIERE, QUEBEC	 	BOULEVARD	 	 	 	 	 	OTHER,	 	 
	 
	 	 	 	G7S 4K6	 	STAMFORD,	 	 	 	 	 	MOTOR	 	 
	 
	 	 	 	 	 	CONNECTICUT	 	 	 	 	 	VEHICLE	 	 
	 
	 	 	 	SOCIETE EN	 	068901	 	 	 	 	 	INCLUDED	 	 
	 
	 	 	 	COMMANDITE NOVELIS	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	NO. 1	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	2040 FAY STREET	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	JONQUIERE, QUEBEC	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	G7S 4K6	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	NOVELIS NO. 1 LIMITED	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	PARTNERSHIP SOCIETE	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	EN COMMANDITE	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	NOVELIS NO. 1	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	2040 FAY STREET	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	JONQUIERE, QUEBEC	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	G7S 4K6	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	SOCIETE EN	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	COMMANDITE NOVELIS	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	NO. 1 NOVELIS NO. 1	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	LIMITED PARTNERSHIP	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	2040 FAY STREET	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	JONQUIERE, QUEBEC	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	G7S 4K6	 	 	 	 	 	 	 	 	 	 

 

- 19 -

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	Registration/	 	 	 	 
	 	 	 	 	 	 	 	 	File No. and	 	Renewal	 	 	 	 
	 	 	Page	 	 	 	 	 	Registration No./	 	Period	 	Collateral	 	 
	No.	 	No.	 	Debtor(s)	 	Secured Party(ies)	 	Date of Registration	 	(years)	 	Classification	 	Comments
	 
	 	 	 	4260848 CANADA INC.	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	191 EVANS AVENUE	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	TORONTO, ONTARIO	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	M8Z LJ5	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	2
	 	5-7	 	NOVELIS NO. 1	 	LASALLE BUSINESS	 	636803505	 	7 YEARS	 	INVENTORY,	 	N/A
	 
	 	 	 	LIMITED PARTNERSHIP	 	CREDIT, LLC	 	20070628145715301286	 	 	 	EQUIPMENT,	 	 
	 
	 	 	 	2040 FAY STREET	 	135 SOUTH LASALLE	 	(JUNE 28, 2007)	 	 	 	ACCOUNTS,	 	 
	 
	 	 	 	JONQUIERE, QUEBEC	 	STREET, SUITE 425	 	 	 	 	 	OTHER,	 	 
	 
	 	 	 	G7S 4K6	 	CHICAGO, ILLINOIS	 	 	 	 	 	MOTOR	 	 
	 
	 	 	 	 	 	60603	 	 	 	 	 	VEHICLE	 	 
	 
	 	 	 	SOCIETE EN	 	 	 	 	 	 	 	INCLUDED	 	 
	 
	 	 	 	COMMANDITE NOVELIS	 	 	 	 	 	 	 	 	 
	 
	 	 	 	NO. 1	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	2040 FAY STREET	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	JONQUIERE, QUEBEC	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	G7S 4K6	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	NOVELIS NO. 1 LIMITED	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	PARTNERSHIP SOCIETE	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	EN COMMANDITE	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	NOVELIS NO. 1	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	2040 FAY STREET	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	JONQUIERE, QUEBEC	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	G7S 4K6	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	SOCIETE EN	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	COMMANDITE NOVELIS	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	NO. 1 NOVELIS NO. 1	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	LIMITED PARTNERSHIP	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	2040 FAY STREET	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	G7S 4K6	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	4260848 CANADA INC.	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	191 EVANS AVENUE	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	TORONTO, ONTARIO	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	M8Z LJ5	 	 	 	 	 	 	 	 	 	 

 

- 20 -

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	Registration/	 	 	 	 
	 	 	 	 	 	 	 	 	File No. and	 	Renewal	 	 	 	 
	 	 	Page	 	 	 	 	 	Registration No./	 	Period	 	Collateral	 	 
	No.	 	No.	 	Debtor(s)	 	Secured Party(ies)	 	Date of Registration	 	(years)	 	Classification	 	Comments
	3
	 	8-10	 	NOVELIS NO. 1 LIMITED	 	CITICORP NORTH	 	635400351	 	10 YEARS	 	INVENTORY,	 	N/A
	 
	 	 	 	PARTNERSHIP SOCIETE	 	AMERICA, INC.	 	20070517092718626018	 	 	 	EQUIPMENT,	 	 
	 
	 	 	 	EN COMMANDITE	 	388 GREENWICH STREET	 	(MAY 17, 2007)	 	 	 	ACCOUNTS, OTHER,	 	 
	 
	 	 	 	NOVELIS NO. 1 	 	 19TH FLOOR	 	 	 	 	 	MOTOR VEHICLE	 	 
	 
	 	 	 	2040 FAY STREET	 	NEW YORK, NEW YORK	 	 	 	 	 	INCLUDED	 	 
	 
	 	 	 	JONQUIERE, QUEBEC	 	10013	 	 	 	 	 	 	 	 
	 
	 	 	 	G7S 4K6	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	SOCIETE EN	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	COMMANDITE NOVELIS	 	 	 	 	 	 	 	 	 
	 
	 	 	 	NO. 1 NOVELIS NO. 1	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	LIMITED PARTNERSHIP	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	2040 FAY STREET	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	JONQUIERE, QUEBEC	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	G7S 4K6	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	NOVELIS NO. 1	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	LIMITED PARTNERSHIP	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	2040 FAY STREET	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	JONQUIERE, QUEBEC	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	G7S 4K6	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	SOCIETE EN	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	COMMANDITE NOVELIS	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	NO. 1 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	2040 FAY STREET 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	JONQUIERE, QUEBEC G7S 4K6	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	NOVELIS INC. 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	191 EVANS AVENUE	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	TORONTO, ONTARIO	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	M8Z 1J5	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	4260848 CANADA INC.	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	191 EVANS AVENUE	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	TORONTO, ONTARIO	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	M8Z 1J5	 	 	 	 	 	 	 	 	 	 

 

APPENDIX F

Personal Property Security Act (“PPSA”)

We
obtained a certificate from the Registrar of Personal Property
Security with respect to AV
Aluminum Inc. (file currency: June 27, 2007) which discloses the following financing statements and
financing change statements filed under the PPSA.

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	Registration/	 	 	 	 
	 	 	 	 	 	 	 	 	File No. and	 	Renewal	 	 	 	 
	 	 	Page	 	 	 	 	 	Registration No./	 	Period	 	Collateral	 	 
	No.	 	No.	 	Debtor(s)	 	Secured Party(ies)	 	Date of Registration	 	(years)	 	Classification	 	Comments
	1
	 	2	 	AV ALUMINUM INC.	 	UBS AG, STAMFORD	 	636803397	 	9 YEARS	 	INVENTORY,	 	N/A
	 
	 	 	 	3399 PEACHTREE ROAD	 	BRANCH 677	 	20070628145715301275	 	 	 	EQUIPMENT,	 	 
	 
	 	 	 	NE, SUITE 1500	 	WASHINGTON	 	(JUNE 28, 2007)	 	 	 	ACCOUNTS, OTHER,	 	 
	 
	 	 	 	ATLANTA, GEORGIA	 	BOULEVARD STAMFORD,	 	 	 	 	 	MOTOR VEHICLE	 	 
	 
	 	 	 	30326	 	CONNECTICUT 

068901	 	 	 	 	 	INCLUDED	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	2
	 	3	 	AV ALUMINUM INC.	 	LASALLE BUSINESS	 	636803451	 	7 YEARS	 	INVENTORY,	 	N/A
	 
	 	 	 	3399 PEACHTREE ROAD	 	CREDIT, LLC 	 	20070628145715301281	 	 	 	EQUIPMENT,	 	 
	 
	 	 	 	NE SUITE 1500	 	135 SOUTH LASALLE	 	(JUNE 28, 2007)	 	 	 	ACCOUNTS, OTHER,	 	 
	 
	 	 	 	ATLANTA, GEORGIA	 	STREET, SUITE 425	 	 	 	 	 	MOTOR VEHICLE	 	 
	 
	 	 	 	30326	 	CHICAGO, ILLINOIS	 	 	 	 	 	INCLUDED	 	 
	 
	 	 	 	 	 	60603	 	 	 	 	 	 	 	 

 

 

LIEN SEARCH RESULTS

NOVELIS FINANCES USA LLC
 (Delaware)

	 	 	 	 	 	 	 
	 	 	 	 	 	 	U.S.
	Type of	 	Secretary of	 	U.S. District	 	Bankruptcy
	Search	 	State	 	Court	 	Court
	UCC Filing
	 	R/C

1*

As of 5/25/07	 	 	 	 
	 	 	 	 	 	 	 
	Federal 

Tax Liens
	 	R/C

As of 5/25/07	 	 	 	 
	 	 	 	 	 	 	 
	Federal 

Judgment
	 	 	 	R/C

As of 6/7/07	 	 
	 	 	 	 	 	 	 
	Federal 

Defendant Suit
	 	 	 	R/C

As of 6/7/07	 	 
	 	 	 	 	 	 	 
	Bankruptcy
	 	 	 	 	 	R/C

As of 6/7/07

*UCC Filings

1 Record on File:

Debtor: Finances USA LLC

Secured Party: Citicorp North America, Inc.

Registration No.: 63648672

 

 

LIEN SEARCH RESULTS

NOVELIS SOUTH AMERICA HOLDINGS LLC

(Delaware)

	 	 	 	 	 	 	 
	 	 	 	 	 	 	U.S.
	Type of	 	Secretary of	 	U.S. District	 	Bankruptcy
	Search	 	State	 	Court	 	Court
	UCC Filing
	 	R/C

1*

As of 5/25/07	 	 	 	 
	 	 	 	 	 	 	 
	Federal Tax 

Liens
	 	R/C

As of 5/25/07	 	 	 	 
	 	 	 	 	 	 	 
	Federal 

Judgment
	 	 	 	R/C

As of 6/7/07	 	 
	 	 	 	 	 	 	 
	Federal 

Defendant Suit
	 	 	 	R/C

As of 6/7/07	 	 
	 	 	 	 	 	 	 
	Bankruptcy
	 	 	 	 	 	R/C

As of 6/7/07

*UCC Filings

1 Record on File:

Debtor: Novelis South America Holdings LLC
 Secured Party: Citicorp North America, Inc.

Registration No.: 63648615

 

 

LIEN SEARCH RESULTS

ALUMINUM UPSTREAM HOLDINGS LLC

(District of Columbia)

	 	 	 	 	 	 	 
	 	 	 	 	 	 	U.S.
	Type of	 	Secretary of	 	U.S. District	 	Bankruptcy
	Search	 	State	 	Court	 	Court
	UCC Filing
	 	R/C

1*

As of 5/25/07	 	 	 	 
	 	 	 	 	 	 	 
	Federal Tax 

Liens
	 	R/C

As of 5/25/07	 	 	 	 
	 	 	 	 	 	 	 
	Federal 

Judgment
	 	 	 	R/C

As of 6/7/07	 	 
	 	 	 	 	 	 	 
	Federal Defendant 

Suit
	 	 	 	R/C

As of 6/7/07	 	 
	 	 	 	 	 	 	 
	Bankruptcy
	 	 	 	 	 	R/C

As of 6/7/07

*UCC Filings

1 Record on File:

Debtor: Aluminum Upstream Holdings LLC
 Secured Party: Citicorp North America, Inc.

Registration No.: 63648573

 

 

LIEN SEARCH RESULTS

NOVELIS PAE CORPORATION

(Delaware)

	 	 	 	 	 	 	 
	 	 	 	 	 	 	U.S.
	Type of	 	Secretary of	 	U.S. District	 	Bankruptcy
	Search	 	State	 	Court	 	Court
	UCC Filing
	 	R/C

1*

As of 5/25/07	 	 	 	 
	 	 	 	 	 	 	 
	Federal Tax 

Liens
	 	R/C

As of 6/7/07	 	 	 	 
	 	 	 	 	 	 	 
	Federal 

Judgment
	 	 	 	R/C

As of 6/7/07	 	 
	 	 	 	 	 	 	 
	Federal 

Defendant Suit
	 	 	 	R/C

As of 6/7/07	 	 
	 	 	 	 	 	 	 
	Bankruptcy
	 	 	 	 	 	R/C

As of 6/7/07

*UCC Filings

1 Record on File:

Debtor: Novelis PAE Corporation
 Secured Party: Citicorp North America, Inc.
 Registration No.: 501404427

 

 

LIEN SEARCH RESULTS

NOVELIS PAE CORPORATION

(Connecticut)

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Stamford	 	 	 	 
	 	 	 	 	 	 	Norwalk	 	U.S.	 	U.S.
	Type of	 	Secretary of	 	Stamford	 	Judicial	 	District	 	Bankruptcy
	Search	 	State	 	City Clerk	 	District	 	Court	 	Court
	Federal Tax

Liens
	 	R/C

As of 6/5/07
	 	R/C
As of 6/7/07	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	State Tax 

Liens
	 	R/C

As of 6/4/07
	 	R/C

As of 6/7/07	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	Federal 

Judgment
	 	 	 	 	 	 	 	R/C

As of 6/7/07	 	 
	 	 	 	 	 	 	 	 	 	 	 
	Federal 

Defendant Suit
	 	 	 	 	 	 	 	R/C

As of 6/7/07	 	 
	 	 	 	 	 	 	 	 	 	 	 
	Judgment 

Liens
	 	R/C

As of 6/4/07
	 	R/C

As of 6/7/07
	 	R/C

As of 6/8/07	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	Local Defendant 

Suit
	 	 	 	 	 	R/C

As of 6/8/07	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	Bankruptcy
	 	 	 	 	 	 	 	 	 	R/C

As of 6/8/07

 

 

SCHEDULE D

NY Real Property Recording Requirements

	(a)	 	Record the NY Mortgage with the Office of the Oswego County Clerk, Oswego, New
York (the “County Recorder”);
	 
	(b)	 	record the Financing Statement described in Paragraph 30 hereof (the “Financing
Statement”) with the County Recorder; and
	 
	(c)	 	prior to the expiration of each period of five (5) years following the initial recording of
the Financing Statement, so long as the Collateral Agent is permitted to maintain a lien
on the UCC Property pursuant to the terms of the Credit Agreement, record a continuance
thereof with the County Recorder.

 

 

EXHIBIT O

Form of

SOLVENCY CERTIFICATE

July 6, 2007

The undersigned, the chief financial officer each of the Loan Parties, hereby certifies on behalf
of such Loan Party and for the benefit of the Lenders and the Administrative Agent that:

1. This Certificate is provided pursuant to Section 4.01 (h) of, and in connection with the
consummation of the transactions contemplated by, the Credit Agreement, dated as of July 6, 2007
(as amended, amended and restated, supplemented or otherwise modified from time to time, the
“Credit Agreement”), among NOVELIS INC., a corporation formed under the Canada Business
Corporations Act, NOVELIS CORPORATION, a Texas corporation, AV ALUMINUM INC., a corporation formed
under the Canada Business Corporations Act, the Subsidiary Guarantors (such term and each other
capitalized term used but not defined herein having the meaning given to it in the Credit
Agreement), the Lenders, UBS AG, STAMFORD BRANCH, as administrative agent for the Lenders, UBS AG,
STAMFORD BRANCH, as collateral agent for the Secured Parties, the other agents party thereto, and
ABN AMRO INCORPORATED and UBS SECURITIES LLC, as joint lead arrangers
and joint bookmanagers.

2. At the time of and immediately after the consummation of the Transactions to occur on the
Closing Date, and at the time of and immediately following the making of each Loan and after giving
effect to the application of the proceeds of each Loan and the operation of the Contribution,
Intercompany, Contracting and Offset Agreement, (a) the fair value of the assets of each Loan Party
(individually and on a consolidated basis with its Subsidiaries) will exceed its debts and
liabilities, subordinated, contingent, prospective or otherwise; (b) the present fair saleable
value of the property of each Loan Party (individually and on a consolidated basis with its
Subsidiaries) will be greater than the amount that will be required to pay the probable liability
of its debts and other liabilities, subordinated, contingent, prospective or otherwise, as such
debts and other liabilities become absolute and matured; (c) each Loan Party (individually and on a
consolidated basis with its Subsidiaries) will be able to pay its debts and liabilities,
subordinated, contingent, prospective or otherwise, as such debts and liabilities become absolute
and matured; (d) each Loan Party (individually and on a consolidated basis with its Subsidiaries)
will not have unreasonably small capital with which to conduct its business in which it is engaged
as such business is now conducted and is proposed to be conducted following the Closing Date; and
(e) each Loan Party is not “insolvent” as such term is defined under any bankruptcy, insolvency or
similar laws of any jurisdiction in which any Loan Party is organized or incorporated (as
applicable), or otherwise unable to pay its debts as they fall due.

[Signature Page Follows]

EXHIBIT O-1 

 

In Witness Whereof, the undersigned has executed this certificate on the date first
written above.

	 	 	 	 	 
	 	NOVELIS CORPORATION

 	 
	 	    By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	NOVELIS PAE CORPORATION

 	 
	 	    By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	NOVELIS, INC.

 	 
	 	    By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	NOVELIS UK LTD

 	 
	 	    By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

EXHIBIT O-2 

 

	 	 	 	 	 
	 	NOVELIS AG

 	 
	 	    By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	AV ALUMINUM INC.

 	 
	 	    By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	NOVELIS CAST HOUSE TECHNOLOGY LTD.

 	 
	 	    By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	4260848 CANADA INC.

 	 
	 	    By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

EXHIBIT O-3 

 

	 	 	 	 	 
	 	4260856 CANADA INC.

 	 
	 	    By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	NOVELIS NO. 1 LIMITED PARTNERSHIP

 	 
	 	    By:  	 	 
	 	 	Name:  	 	 
	 	 	Title: 	 
	 
	 	NOVELIS FINANCES USA LLC

 	 
	 	    By:  	 	 
	 	 	Name: 	 
	 	 	Title:  	 	 
	 
	 	NOVELIS SOUTH AMERICA HOLDINGS LLC

 	 
	 	    By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

EXHIBIT O-4 

 

	 	 	 	 	 
	 	ALUMINUM UPSTREAM HOLDINGS LLC

 	 
	 	    By:  	 	 
	 	 	Name:  	 	 
	 	 	Title: 	 
	 
	 	NOVELIS EUROPE HOLDINGS LIMITED

 	 
	 	    By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	NOVELIS DEUTSCHLAND GMBH

 	 
	 	    By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	NOVELIS SWITZERLAND SA

 	 
	 	    By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

EXHIBIT O-5 

 

	 	 	 	 	 
	 	NOVELIS TECHNOLOGY AG

 	 
	 	    By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	NOVELIS ALUMINIUM HOLDING COMPANY

 	 
	 	    By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	NOVELIS DO BRASIL LTDA

 	 
	 	    By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

EXHIBIT O-6 

 

EXHIBIT P

Form of Intercompany Note

PROMISSORY NOTE

			
	 	 	 
	[Currency][Loan Amount]	 	Date: [Date]
	 	 	 

          FOR VALUE RECEIVED, the undersigned [INTERCOMPANY BORROWER], a company organized under the
laws of [Intercompany Jurisdiction] (“Borrower”), HEREBY PROMISES TO PAY to the order of
[INTERCOMPANY LENDER], a [Type of Entity] organized under the laws of [Intercompany Lender
Jurisdiction] (“Lender”) on [Term Loan Maturity Date] (the “Maturity Date”) and in
accordance with the terms and conditions of the Subordination Agreements (as defined below) the
principal sum of
[                                        ] or, if less, the aggregate principal amount of the Advances (as defined
below) made by Lender to the Borrower pursuant to Section 1 below.

          Capitalized terms used but not defined herein shall have the meanings ascribed to such terms
in the Intercreditor Agreement, dated as of July 6, 2007 (as amended, restated, supplemented,
modified or replaced from time to time, the “Intercreditor Agreement”), by and among
NOVELIS INC., a corporation formed under the Canada Business Corporations Act, NOVELIS
CORPORATION, a Texas corporation, NOVELIS PAE CORPORATION, a Delaware corporation, NOVELIS
FINANCES USA LLC, a Delaware limited liability company, NOVELIS SOUTH AMERICA HOLDINGS LLC, a
Delaware limited liability company, ALUMINUM UPSTREAM HOLDINGS LLC, a Delaware limited liability
company, NOVELIS UK LTD, a limited liability company incorporated under the laws of England and
Wales with registered number 00279596, NOVELIS AG, a stock corporation (AG) organized under the
laws of Switzerland, AV ALUMINUM INC., a corporation formed under the Canada Business Corporations
Act (“Holdings”), the subsidiaries of Holdings from time to time party thereto, ABN AMRO
BANK N.V., as administrative agent for the Revolving Credit Lenders (as defined in the
Intercreditor Agreement), LA SALLE BUSINESS CREDIT, LLC, as collateral agent for the Revolving
Credit Claimholders (as defined in the Intercreditor Agreement) and as funding agent, ABN AMRO
BANK N.V., acting through its Canadian branch, as Canadian administrative agent for the Revolving
Credit Claimholders, and as Canadian funding agent, and UBS AG, STAMFORD BRANCH, as administrative
agent for the Term Loan Lenders (as defined in the Intercreditor Agreement) and as collateral
agent for the Term Loan Claimholders (as defined in the Intercreditor Agreement) and certain other
persons which may be or become parties thereto or become bound thereto from time to time.
Reference is hereby made to (i) the Subordination Agreement, dated as of July 6, 2007 (the
“Revolving Credit Subordination Agreement”), among Holdings, the subsidiaries of Holdings
party thereto and LASALLE BUSINESS CREDIT, LLC, as funding agent and as collateral agent, (ii) the
Subordination Agreement, dated as of July [ ], 2007 (the “Term Loan Subordination
Agreement” and, together with the Revolving Credit Subordination Agreement, the “Subordination
Agreements”), among Holdings, the subsidiaries of Holdings party thereto and UBS AG, STAMFORD
BRANCH, as administrative agent and as collateral agent, (iii) the Contribution, Intercompany,
Contracting and Offset Agreement, dated as of July 6, 2007 (the “Revolving Credit CICO
Agreement”), among Holdings, the subsidiaries of Holdings party thereto and LASALLE BUSINESS
CREDIT, LLC, as funding agent and as collateral agent, (iv) the Contribution, Intercompany,
Contracting and Offset Agreement, dated as of July [ ], 2007 (the “Term Loan CICO
Agreement” and, together with the Revolving Credit

 

 

CICO Agreement, the “CICO Agreements”), among Holdings, the subsidiaries of Holdings party
thereto and UBS AG, STAMFORD BRANCH, as administrative agent and as collateral agent.

          1. Loan. The principal amount stated above (the “Advances”) has been loaned to the
Borrower by the Lender subject to the terms and conditions hereof and of the Subordination
Agreements, the CICO Agreements, the Revolving Credit Agreement and the Term Loan Agreement.
Subject to the terms and conditions hereof and of the Subordination Agreements, the CICO
Agreements, the Revolving Credit Agreement and the Term Loan Agreement, the Borrower may prepay the
Advances under this Promissory Note without premium or penalty.

          2. Interest. (a) The Advances shall bear interest at a rate per annum equal to
[                    ]% (computed on the basis of year of [360]1[365]2 days), payable until the
Maturity Date. The Borrower promises to pay interest on the unpaid principal amount of Advances from the date hereof
until such principal amount is paid in full. Interest accrued on the amount of all other
obligations hereunder shall be payable on demand from and after the time such obligation becomes
due and payable (whether by acceleration or otherwise). [Interest on the amount of all obligations
hereunder shall continue to accrue after the beginning of any bankruptcy or insolvency proceeding
involving the Borrower, whether or not allowed in such proceeding.]3 [In the event that
accrued interest is not paid cash, it will compound on an annual basis in accordance with article
1154 of the French Civil Code.]4

          [(b) To comply with the provisions of article L. 314 of the French Monetary and Financial
Code (Code Monétaire et Financier), the Borrower and the Lender agree that the effective global
rate for the facility is [                    ]% per annum and [                    ]% per quarter.]5

          [(b) Notwithstanding any other provision of this Promissory Note, it is understood that
the interest rate applicable hereunder in no event shall exceed the maximum interest rate permitted
by Law no. 108 of March 7, 1996 (disposizioni in materia di usura) and related implementation
regulations and subsequent amendments and/or repeals. Should, by any means, the interest rate due
pursuant to the Section 2 above exceed the maximum rate permitted under applicable law, the
interest rate applicable shall be automatically reduced as necessary to allow the interest rate
applicable to be in compliance with any applicable law.]6

          [(b) Notwithstanding any other provisions of this Promissory Note, in no such event shall, if
applicable, any: (i) an increase of the applicable interest rate triggered by the late payment of
an overdue amount exceed 0.5% per annum on the outstanding principal amount due (article 1907
Belgian Civil Code); (ii) prepayment and related fees exceed six months of interest on the pre-paid
amount, calculated at the rate of interest accruing on the principal
amount (1907 bis Belgian Civil
Code); (iii) interest be claimed on overdue interest, unless (A) the overdue interest has accrued
over a period of at least one year, and (B) the interest has formally been claimed by the Lender,
or the Borrower has agreed to it, after such period has effectively passed

 

			
	1	 	Insert for borrowers other than UK borrowers.
	 
	2	 	Insert for UK borrowers.
	 
	3	 	Delete for German [or Swiss] borrowers.
	 
	4	 	Insert for French borrowers.
	 
	5	 	Insert for French borrower if there are no charges other than interest (insert
interest rate from Section 2(a) above).
	 
	6	 	Insert for Italian borrower.

2

 

(article 1154 Belgian Civil Code); and (iv) the aggregate annual interest rate applicable in this
Promissory Note exceed the maximum permitted by the Belgian Civil Code and other Requirements of
Law from time to time in force in Belgium.]7

          [(b) [Interest Act (Canada). For purposes of the Interest Act (Canada), whenever in this
Promissory Note any interest is calculated on the basis of a period of time other than a year of
365 or 366 days, as applicable, the annual rate of interest to which each rate of interest utilized
pursuant to such calculation is equivalent is such rate so utilized multiplied by the actual number
of days in the calendar year in which the same is to be ascertained and divided by the number of
days used in such calculation. For the purposes of the Interest Act (Canada), the principle of
deemed reinvestment of interest will not apply to any interest calculation under this Promissory
Note, and the rates of interest stipulated in this Promissory Note are intended to be nominal rates
and not effective rates or yields.

          (c) Criminal Interest Rate. (i) If any provision of this Promissory Note would obligate
the Borrower to make any payment of interest or other amount payable to the Lender hereunder in an
amount or calculated at a rate which would be prohibited by law or would result in a receipt by the
Lender of interest at a criminal rate (as construed under the Criminal Code (Canada)), then
notwithstanding that provision, that amount or rate shall be deemed to have been adjusted with
retroactive effect to the maximum amount or rate of interest, as the case may be, as would not be
so prohibited by law or result in a receipt by the Lender of interest at a criminal rate, the
adjustment to be effected, to the extent necessary, (A) first, by reducing the amount or rate of
interest required to be paid to the Lender under this Section 2 and (B) thereafter, by reducing any
fees, commissions, premiums and other amounts required to be paid to the Lender which would
constitute interest for purposes of Section 347 of the Criminal Code (Canada).

          (ii) Notwithstanding clause (c)(i), and after giving effect to all adjustments
contemplated thereby, if the Lender shall have received an amount in excess of the maximum
permitted by the Criminal Code (Canada), then the Borrower, shall be entitled, by notice in
writing to the Lender, to obtain reimbursement from the Lender in an amount equal to the
excess, and pending reimbursement, the amount of the excess shall be deemed to be an amount
payable by the Lender to the Borrower.

          (iii) Any amount or rate of interest referred to in this Section 2 shall be
determined in accordance with generally accepted actuarial practices and principles as an
effective annual rate of interest over the term of this Promissory Note on the assumption
that any charges, fees or expenses that fall within the meaning of interest (as defined in
the Criminal Code (Canada)) shall be pro-rated over that period of time and, in the event of
a dispute, a certificate of a Fellow of the Canadian Institute of Actuaries appointed by the
Administrative Agent shall be conclusive for the purposes of that
determination.]8

          3. Payments; Record of Debt. Both principal and interest are payable in the currency in
which Advances are made to Lender in same day funds. The Advances made by Lender to the Borrower
pursuant to the terms hereof, and all payments made on account of

 

			
	7	 	Insert for Belgian borrower.
	 
	8	 	Insert for Canadian borrower.

3

 

principal thereof, shall be recorded by Lender in its books and records, such books and records
constituting prima facie evidence of the accuracy of the information contained therein; provided
that the failure of Lender to make any such recordation or endorsement shall not affect the
obligations of the Borrower hereunder.

          4. Waivers. The Borrower hereby waives presentment, demand, protest and notice of any kind. No
failure to exercise, and no delay in exercising, any rights hereunder on the part of the holder
hereof shall operate as a waiver of such rights.

          5.
Event of Default. In the event (each, an “Event of Default”) that:

          (a) a Revolving Credit Default shall have occurred and is continuing,

          (b) a Term Loan Default shall have occurred and is continuing, or

          (c) the Borrower shall fail to pay any principal of any Advance or interest thereon pursuant
to this Promissory Note when the same becomes due and payable,

then, and in any such event, the Lender may, by notice to the Borrower, declare the Advances, all
interest thereon and all other amounts payable under this Promissory Note to be forthwith due and
payable, whereupon the Advances, all such interest and all such amounts shall become and be
forthwith due and payable, without presentment, demand, protest or further notice of any kind, all
of which are hereby expressly waived by the Borrower; provided that in the case of the occurrence
of (i) a Revolving Credit Default of the type referred to in Section 8.01(g) or (h) of the
Revolving Credit Agreement, (ii) a Tem Loan Default of the type referred to in Section 8.01 (g) or
(h) of the Term Loan Agreement or (iii) an Event of Default under clause (c) above [or in the case
that any financial statements of the Borrower show the book value of the net assets of the Borrower
have fallen to below half of its stated share capital (Stammkapital)]9, the Advances,
and all such interest and all other amounts owing hereunder shall automatically become and be due
and payable, without presentment, demand, protest or any notice of any kind, all of which are
hereby expressly waived by the Borrower. [The Borrower represents and warrants that it has obtained
shareholder approval by resolution authorizing the Borrower to permit the Lender to terminate this
Promissory Note and to claim immediate repayment of all sums due hereunder in case of a change of
control as contemplated by the Revolving Credit Agreement and/or the Term Loan Agreement and that
such resolution will be timely filed with the Clerk’s Office of the competent Commercial Court
(article 556 Belgian Companies Code).]10

          6. Governing Law. This Promissory Note shall be governed by, and construed in accordance with,
the laws of [Intercompany Borrower Jurisdiction], without giving effect to principles of conflict
of laws thereof.

          7. Amendments. This Promissory Note cannot be amended without the consent of each of (i) the
parties hereto and (ii) prior to the Discharge of Revolving Credit Obligations, the Revolving
Credit Funding Agent and (iii) prior to the Discharge of Term Loan Obligations, the Term Loan
Administrative Agent.

 

			
	9	 	Insert for German borrower
	 
	10	 	Insert for Belgian SA/NV or SCA/CVA borrower

4

 

          8. Expenses. The Borrower agrees to pay all costs and expenses, including reasonable
attorneys’ fees and legal expenses, incurred by the Lender in endeavoring to collect any amounts
payable hereunder which are not paid when due, whether by acceleration or otherwise.

          9. No Set Off. Unless required by applicable law, and subject to the terms of the
Subordination Agreements, at no time may the Lender appropriate and apply toward the payment of all
or any part of the obligations of the Borrower under this Promissory Note (i) any other
indebtedness due or to become due from the Borrower to the Lender, and (ii) any moneys, credits or
other property belonging to the Borrower, at any time held by or coming into the possession of the
Lender.

          10. Taxes. (a) In the event that a Revolving Credit Default or a Term Loan Default has
occurred and is continuing, any and all payments by the Borrower under this Promissory Note shall
be made free and clear of and without deduction for any and all present or future taxes, levies,
duties, imposts, deductions, charges or withholdings, and all liabilities with respect thereto,
excluding (i) in the case of the Lender taxes measured by its net income and franchise taxes
imposed on it, and similar taxes imposed by the jurisdiction (or any political subdivision thereof)
under the laws of which the Lender is organized, and (ii) in the case of the Lender, except to the
extent arising solely as a result of entering into this Promissory Note, taxes measured by its net
income and franchise taxes imposed on it as a result of a present or former connection between the
Lender and the jurisdiction of the governmental authority imposing such tax or any taxing authority
thereof or therein, other than the entering into of the Promissory Note (all such non-excluded
taxes, levies, duties, imposts, deductions, charges, withholdings and liabilities being hereinafter
referred to as “Taxes”). If any Taxes shall be required by law to be withheld or deducted
from or in respect of any sum payable hereunder to the Lender (w) the sum payable shall be
increased as may be necessary so that after making all required deductions or withholdings in
respect of Taxes (including deductions applicable to additional sums payable under this Section
10) the Lender receives an amount equal to the sum it would have received had no such deductions or
withholdings been made, (x) the Borrower shall make such deductions or withholdings, (y) the
Borrower shall pay the full amount deducted or withheld to the relevant taxing authority or other
authority in accordance with applicable law and (z) the Borrower shall deliver to the Lender
evidence of such payment.

          (b) In addition, if a Revolving Credit Default or a Term Loan Default has occurred and is
continuing, the Borrower shall pay any present or future stamp, registration, notarization or
documentary or similar taxes or any other excise or property taxes, charges or similar levies, and
all liabilities with respect thereto, in each case arising from any payment made or credited under
or in connection with this Promissory Note or from the execution, delivery, registration or
enforcement of, or otherwise with respect to, this Promissory Note (collectively, “Other
Taxes”).

          (c) The Borrower shall indemnify the Lender for the full amount of Taxes and Other Taxes
(including any Taxes and Other Taxes imposed by any jurisdiction on amounts payable under this
Section 10) paid by the Lender and any liability (including for penalties, interest and expenses)
that arises from any payment made or crediting of amounts hereunder or from the execution,
delivery, performance or enforcement of, or otherwise with respect to, this Promissory Note,
whether or not such Taxes or Other Taxes were correctly or legally asserted. This indemnification
shall be made within 30 days from the date the Lender makes written demand therefor.

5

 

          (d) Within 30 days after the date of any payment of Taxes or Other Taxes by the Borrower, the
Borrower shall furnish the Lender, pursuant to the indemnity set forth in clause (c) above, the
original or a certified copy of a receipt evidencing payment thereof or other evidence of payment
thereof reasonably acceptable to Lender.

          (e) The Borrower and the Lender will use reasonable good faith efforts to eliminate or reduce
any Taxes or Other Taxes to which a payment hereunder may be subject and will provide any
certificates or other evidence of an exemption from or reduced rate of Taxes or Other Taxes in this
regard.

          (f) Without prejudice to the survival of any other agreement of the Borrower, the Lender
hereunder, the agreements and obligations of the Borrower contained in this Section 10 shall
survive the payment in full of all other obligations of the Borrower under this Promissory Note.

          (g) If the Lender determines in its sole discretion exercised reasonably that it has received
or has been granted a credit against, or remission for, or a refund or a repayment of any Taxes (i)
as a result of the Borrower’s deduction or withholding and payment to a taxing authority of an
amount pursuant to clause (a) above or (ii) with respect to which the Borrower has paid an amount
to the Lender or any of its transferees or assignees, as the case may be, pursuant to clause (c)
above, then the Lender, as the case may be, shall, within 30 days, pay the Borrower the lesser of
(y) the credit, remission, refund or repayment of Taxes received or granted and (z) the amount paid
by the Borrower pursuant to this Section 10.

          11. Judgment Currency. (a) This is an international loan transaction in which the
specification of [Currency] is of the essence, and [Currency] shall in each instance be the
currency of account and payment in all instances.

          (b) Borrower’s obligations hereunder to make payments in [Currency] shall not be discharged or
satisfied by any tender or recovery pursuant to any judgment expressed in or converted into any
currency other than [Currency] or in another place, except to the extent that such tender or
recovery results in the effective receipt by the Lender of the full amount of [Currency] expressed
to be payable to the Lender under this Promissory Note.

          (c) If, for the purpose of obtaining or enforcing judgment against Lender in any court or in
any jurisdiction, it becomes necessary to convert into or from any currency other than [Currency]
(such other currency being hereinafter referred to as the “Other Currency”) an amount due
in [Currency], the conversion shall be made at the spot selling rate at which the Term Loan
Administrative Agent (or, following the Discharge of Term Loan Obligations, the Revolving Credit
Funding Agent) (or if the Term Loan Administrative Agent (or, following the Discharge of Term Loan
Obligations, the Revolving Credit Funding Agent) does not quote a rate of exchange on such
currency, by a known dealer in such currency designated by the Term Loan Administrative Agent (or,
following the Discharge of Term Loan Obligations, the Revolving Credit Funding Agent)) offers to
sell such Other Currency for [Currency] in the London foreign exchange market at approximately
11:00 a.m. London time on such date for delivery two (2) Business Days later (such date of
determination of such spot selling rate, being hereinafter referred to as the “Other Currency
Conversion Date”).

          (d) If there is a change in the rate of exchange prevailing between the Other Currency
Conversion Date and the date of actual payment of the amount due, the Borrower

6

 

covenants and agrees to pay, or cause to be paid, as a separate obligation and notwithstanding any
such judgment or judicial award, such additional amounts, if any (but in any event not a lesser
amount) as may be necessary to ensure that the amount paid in the Other Currency, when converted at
the rate of exchange prevailing on the date of payment, will produce the amount of [Currency] which
could have been purchased with the amount of Other Currency stipulated in the judgment or judicial
award at the rate of exchange prevailing on the Other Currency Conversion Date.

          12. Submission to Jurisdiction; Service of Process. (a) Any legal action or proceeding with
respect to this Promissory Note, and any other Loan Document to which the Borrower is a party, may
be brought in the courts of the State of New York or of the United States of America for the
Southern District of New York, and, by execution and delivery of this Promissory Note, the Borrower
(in consideration of similar submissions made by the Lender in the Revolving Credit Loan Documents
and the Term Loan Documents) hereby accepts for itself and in respect of its property, generally
and unconditionally, the jurisdiction of the aforesaid courts. The parties hereto hereby
irrevocably waive any objection, including any objection to the laying of venue or based on the
grounds of forum non conveniens, that any of them may now or hereafter have to the bringing of any
such action or proceeding in such respective jurisdictions.

               (b) The Borrower hereby irrevocably designates, appoints and empowers
CSC Corporation, 1133 Ave of the Americas, Suite 3100, New York, New York, 10036 (telephone no:
212-299-5600) (telecopy no: 212-299-5656) (electronic mail address: jbudhu@cscinfo.com) (the
“Process Agent”), in the case of any suit, action or proceeding brought in the United
States of America as its designee, appointee and agent to receive, accept and acknowledge for and
on its behalf; and in respect of its property, service of any and all legal process, summons,
notices and documents that may be served in any action or proceeding arising out of or in
connection with, this Promissory Note. Such service may be made by mailing (by registered or
certified mail, postage prepaid) or delivering a copy of such process to the Borrower in care of
the Process Agent at the Process Agent’s above address, and the Borrower hereby irrevocably
authorizes and directs the Process Agent to accept such service on its behalf. As an alternative
method of service, the Borrower irrevocably consents to the service of any and all process in any
such action or proceeding by the mailing (by registered or certified mail, postage prepaid) of
copies of such process to the Process Agent or the Borrower care of the Canadian Borrower at the
Canadian Borrower’s address specified in Section 11.01 of the Term Loan Agreement or at such other
address as the Canadian Borrower may specify pursuant to such Section 11.01. The Borrower agrees
that a final judgment in any such action or proceeding shall be conclusive and may be enforced in
other jurisdictions by suit on the judgment or in any other manner provided by law.

               (c) Nothing contained in this Section 12 shall affect the right of the Lender
thereof to serve process in any other manner permitted by law or commence legal proceedings or
otherwise proceed against the Borrower in any other jurisdiction.

          13. Pledge of Note. Pursuant to the Term Loan Security Documents, the Lender has pledged and
granted a security interest in all of its rights and remedies under and in respect of this
Promissory Note in favor of the Term Loan Collateral Agent (for the benefit of the Term Loan
Claimholders) and pursuant to the Revolving Credit Security Documents, the Lender has pledged and
granted a security interest in all of its rights and remedies under and in respect of this
Promissory Note in favor of the Revolving Credit Collateral Agent (for the benefit of the Revolving
Credit Claimholders) and pursuant to the Intercreditor Agreement the Term Loan

7

 

Collateral Agent has agreed to act as sub-agent and as bailee for the Revolving Credit Agents and
the Borrower hereby (i) acknowledges and consents to each such pledge and security interest, (ii)
agrees that upon the occurrence and during the continuance of any Term Loan Default the Term Loan
Collateral Agent may exercise any remedies provided for by the Term Loan Security Documents in
accordance with the terms thereof or any other remedies provided by applicable law, and upon the
occurrence and during the continuance of any Revolving Credit Default the Revolving Credit
Collateral Agent may exercise any remedies provided for by the Revolving Credit Security Documents
in accordance with the terms thereof or any other remedies provided by applicable law, in each
case, in accordance with the terms of the Intercreditor Agreement, (iii) agrees that this
Promissory Note may not be assigned by the Borrower without the prior written consent of the Term
Loan Collateral Agent and the Revolving Credit Collateral Agent (each of which is expressly made a
third party beneficiary hereof) and (iv) agrees and acknowledges that subject to the terms of the
Intercreditor Agreement, this Promissory Note may be assigned or otherwise transferred by the Term
Loan Collateral Agent in accordance with the terms of the Term Loan Security Documents or by the
Revolving Credit Collateral Agent in accordance with the terms of the Revolving Credit Security
Documents.

          14. Waiver of Jury Trial. Each of the Borrower and the Lender irrevocably waives trial by jury
in any action or proceeding with respect to this Promissory Note and any other Loan Document.

          15. Notices. Any notice or other communication herein required or permitted shall be given to
the Borrower or the Lender care of the Canadian Borrower and to the Revolving Credit Funding Agent,
in each case, as set forth in Section 11.01 of the Revolving Credit Agreement, and to the Term Loan
Administrative Agent, as set forth in Section 11.01 of the Term Loan Agreement.

          16. Severability. Wherever possible, each provision of this Promissory Note shall be
interpreted in such manner as to be effective and valid under applicable law, but if any provision
of this Promissory Note shall be prohibited by or invalid by any applicable legally binding
requirements of any governmental authority (including, without limitation, any applicable laws,
judgments, orders, decrees, ordinances, rules, regulations, statutes or case law), such provision
shall be ineffective to the extent of such prohibition or invalidity without invalidating (a) the
remainder of such provision or (b) the remaining provisions of this Promissory Note.

          17. Conflicts. In the event of any conflict between the provisions of this Promissory
Note and the provisions of the Subordination Agreements, the provisions of the Subordination
Agreements shall govern and control.

[Signature Page Follows]

8

 

	 	 	 	 	 
	 	Borrower:

[Intercompany Borrower]

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 
	ACKNOWLEDGED AND AGREED TO 

AS OF THIS                      DAY OF                     , 20                     :

[Intercompany Lender]

 	 
	By:  	 	 	 
	 	Name:  	 	 
	 	Title:  	 	 
	 

 

 

EXHIBIT Q

Form of

TERM LOAN COLLATERAL AGENT APPOINTMENT LETTER

[See attached]

EXHIBIT Q-1

 

[Form of]

Term Loan Collateral Agent Appointment Letter

[DATE]

UBS AG, Stamford Branch

677 Washington Boulevard

Stamford, Connecticut 06901

Attention: Christopher Gomes

			
	Re:	 	Novelis Hedging Agreements

Dear Mr. Gomes:

          Reference is made to that certain Credit Agreement, dated as of July 6, 2007 (as amended,
restated, amended and restated, supplemented or otherwise modified from time to time, the
“Credit Agreement”), among NOVELIS INC., a corporation formed under the Canada
Business Corporations Act (the “Canadian Borrower”), NOVELIS CORPORATION, a Texas
corporation (the “U.S. Borrower” and, together with Canadian Borrower, the
“Borrowers”), AV ALUMINUM INC., a corporation formed under the Canada Business Corporations
Act, the Subsidiary Guarantors (such term and each other capitalized term used but not defined
herein having the meaning given to it in the Credit Agreement), the Lenders, UBS AG, STAMFORD
BRANCH, as Administrative Agent, UBS AG, STAMFORD BRANCH, as Collateral Agent and UBS SECURITIES
LLC and ABN AMRO INCORPORATED, as Arrangers and the Syndication Agent and the Documentation Agent
parties thereto. Each of the undersigned hereby acknowledge that as of the date hereof, [NAME OF
HEDGING COUNTERPARTY], is [a Lender] [a Revolving Credit Lender] [an Arranger] [an Agent] [an
Affiliate of a Lender] [an Affiliate of a Revolving Credit Lender] [an Affiliate of an Arranger]
[an Affiliate of an Agent].

          [NAME OF HEDGING COUNTERPARTY] and [NAME OF LOAN PARTY] [entered into on or prior to the
Closing Date] [and] [desire to enter into on or following the date hereof,] Hedging Agreements
that are permitted under the terms of the Credit Agreement (any such Hedging Agreements [entered
into on or prior to the Closing Date] [or] [entered into while [NAME OF HEDGING COUNTERPARTY] is
[a Lender] [a Revolving Credit Lender] [an Arranger] [an Agent] [an Affiliate of a Lender] [an
Affiliate of a Revolving Credit Lender] [an Affiliate of an Arranger] [an Affiliate of an Agent]
being referred to herein as the “Secured Hedging Agreements”), pursuant to which [NAME OF
HEDGING COUNTERPARTY] is the counterparty (in such capacity under the Secured Hedging Agreements,
the “Hedging Counterparty”) to [NAME OF LOAN PARTY]. Hedging Counterparty desires to
appoint Collateral Agent as its agent under the applicable Loan Documents and to become a Secured
Party under the applicable Loan Documents.

          Hedging Counterparty hereby appoints Collateral Agent as its agent, and Collateral Agent
hereby accepts such appointment as Hedging Counterparty’s agent, under the applicable Loan
Documents. Hedging Counterparty hereby agrees to be bound by the provisions of (i) Sections
10.03 and 10.09 of the Credit Agreement, (ii) the Intercreditor Agreement and (iii)
the Security Documents, in each case, as if it were a Lender.

 

 

UBS AG, Stamford Branch

[DATE]

Page 2

          Upon execution of this letter agreement by each of Collateral Agent and Hedging Counterparty,
Hedging Counterparty shall be a Secured Party, and the obligations of [NAME OF LOAN PARTY] under
the Secured Hedging Agreements shall be Secured Obligations, under each applicable Loan Document
(in each case, subject to the terms thereof).

          This letter agreement may not be amended or any provision hereof waived or modified except by
an instrument in writing signed by each of the parties hereto. This letter agreement may be
executed in any number of counterparts, each of which shall be an original and all of which, when
taken together, shall constitute one agreement. Delivery of an executed counterpart of a signature
page of this letter agreement by facsimile or electronic image scan (e.g. PDF) transmission shall
be effective as delivery of a manually executed counterpart hereof.

          This letter agreement shall be construed in accordance with and governed by the law of the
State of New York, without regard to conflicts of law principles that would require the
application of the laws of another jurisdiction.

	 	 	 	 	 
	 	Very truly yours,

[HEDGING COUNTERPARTY]

 	 
	 	By  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 
	ACKNOWLEDGED AND AGREED TO 

THIS                      DAY OF                     , 20                    :

UBS AG, STAMFORD BRANCH,

as Collateral Agent

 	 
	By  	 	 	 
	 	Name:  	 	 
	 	Title:  	 	 
	 
	By  	 	 	 
	 	Name:  	 	 
	 	Title:  	 	 
	 

 

 

EXHIBIT R

Form of

RECEIVABLES PURCHASE AGREEMENT

[See attached]

EXHIBIT R-l

 

 

Annex I

Applicable Margin

	 	 	 
	Eurocurrency U.S. Term Loans and	 	ABR U.S. Term Loans and ABR Canadian
	Eurocurrency Canadian Term Loans	 	Term Loans
	2.00%
	 	1.00%

 

 

Annex II

Amortization Table

	 	 	 	 	 
	 	 	 	 	Canadian Term Loan
	Date	 	U.S. Term Loan Amount	 	Amount
	 
	September 30, 2007
	 	$1,650,000
	 	$750,000
	 	 	 	 	 
	December 31, 2007
	 	$1,650,000
	 	$750,000
	 	 	 	 	 
	March 31, 2008
	 	$1,650,000
	 	$750,000
	 	 	 	 	 
	June 30, 2008
	 	$1,650,000
	 	$750,000
	 	 	 	 	 
	September 30, 2008
	 	$1,650,000
	 	$750,000
	 	 	 	 	 
	December 31, 2008
	 	$1,650,000
	 	$750,000
	 	 	 	 	 
	March 31, 2009
	 	$1,650,000
	 	$750,000
	 	 	 	 	 
	June 30, 2009
	 	$1,650,000
	 	$750,000
	 	 	 	 	 
	September 30, 2009
	 	$1,650,000
	 	$750,000
	 	 	 	 	 
	December 31, 2009
	 	$1,650,000
	 	$750,000
	 	 	 	 	 
	March 31, 2010
	 	$1,650,000
	 	$750,000
	 	 	 	 	 
	June 30, 2010
	 	$1,650,000
	 	$750,000
	 	 	 	 	 
	September 30, 2010
	 	$1,650,000
	 	$750,000
	 	 	 	 	 
	December 31, 2010
	 	$1,650,000
	 	$750,000
	 	 	 	 	 
	March 31, 2011
	 	$1,650,000
	 	$750,000
	 	 	 	 	 
	June 30, 2011
	 	$1,650,000
	 	$750,000
	 	 	 	 	 
	September 30, 2011
	 	$1,650,000
	 	$750,000
	 	 	 	 	 
	December 31, 2011
	 	$1,650,000
	 	$750,000
	 	 	 	 	 
	March 31, 2012
	 	$1,650,000
	 	$750,000

 

 

	 	 	 	 	 
	 	 	 	 	Canadian Term Loan
	Date	 	U.S. Term Loan Amount	 	Amount
	 
	June 30, 2012
	 	$1,650,000
	 	$750,000
	 	 	 	 	 
	September 30, 2012
	 	$1,650,000
	 	$750,000
	 	 	 	 	 
	December 31, 2012
	 	$1,650,000
	 	$750,000
	 	 	 	 	 
	March 31, 2013
	 	$1,650,000
	 	$750,000
	 	 	 	 	 
	June 30, 2013
	 	$1,650,000
	 	$750,000
	 	 	 	 	 
	September 30, 2013
	 	$1,650,000
	 	$750,000
	 	 	 	 	 
	December 31, 2013
	 	$1,650,000
	 	$750,000
	 	 	 	 	 
	March 31, 2014
	 	$1,650,000
	 	$750,000
	 	 	 	 	 
	June 30, 2014
	 	$1,650,000
	 	$750,000
	 	 	 	 	 
	Final Maturity Date
	 	Remaining outstanding
principal
	 	Remaining outstanding
principal

 

 

Annex III

Mandatory Cost Formula

     1. The Mandatory Cost is an addition to the interest rate to compensate Lenders for the cost
of compliance with (a) the requirements of the Bank of England and/or the Financial Services
Authority (or, in either case, any other authority which replaces all or any of its functions) or
(b) the requirements of the European Central Bank.

     2. On the first day of each Interest Period (or as soon as possible thereafter) the
Administrative Agent shall calculate, as a percentage rate, a rate (the “Additional Cost
Rate”) for each Lender, in accordance with the paragraphs set out below. The Mandatory Cost
will be calculated by the Administrative Agent as a weighted average of the Lenders’ Additional
Cost Rates (weighted in proportion to the percentage participation of each Lender in the relevant
Loan) and will be expressed as a percentage rate per annum.

     3. The Additional Cost Rate for any Lender lending from a Facility Office in a Participating
Member State will be the percentage notified by that Lender to the Administrative Agent. This
percentage will be certified by that Lender in its notice to the Administrative Agent to be its
reasonable determination of the cost (expressed as a percentage of that Lender’s participation in
all Loans made from that Facility Office) of complying with the minimum reserve requirements of the
European Central Bank in respect of loans made from that Facility Office.

     4. The Additional Cost Rate for any Lender lending from a Facility Office in the United
Kingdom will be calculated by the Administrative Agent as follows:

     (a) in relation to a Loan in GBP:

	 	 	 	 	 
	 
	 	AB + C(B-D) + E x 0.01
 
100 - (A + C)	 	per cent, per annum

     (b) in relation to a Loan in any currency other than GBP:

	 	 	 	 	 
	 
	 	E x 0.01
 

300	 	per cent, per annum.

     Where:

     A is the percentage of Eligible Liabilities (assuming these to be in excess of any stated
minimum) which that Lender is from time to time required to maintain as an interest free cash
ratio deposit with the Bank of England to comply with cash ratio requirements.

     B is the percentage rate of interest (excluding the Applicable Margin and the Mandatory Cost
and, if the Loan is an Unpaid Sum, the additional rate of interest specified in Section
2.06(c)) payable for the relevant Interest Period on the Loan.

 

 

     C is the percentage (if any) of Eligible Liabilities which that Lender is required from time
to time to maintain as interest bearing Special Deposits with the Bank of England.

     D is the percentage rate per annum payable by the Bank of England to the Administrative Agent
(or such other bank as may be designated by the Administrative Agent in consultation with Borrower)
on interest bearing Special Deposits.

     E is designed to compensate Lenders for amounts payable under the Fees Rules and is
calculated by the Administrative Agent as being the average of the most recent rates of charge
supplied by the Reference Banks to the Administrative Agent pursuant to paragraph 7 below and
expressed in GBP per £1 million.

     5. For the purposes of this Schedule:

     (a) “Eligible Liabilities” and “Special Deposits” have the meanings given to them from time to
time under or pursuant to the Bank of England Act 1998 or (as may be appropriate) by the Bank of
England;

     (b) “Facility Office” means the office or offices notified by a Lender to the Administrative
Agent in writing on or before the date it becomes a Lender (or, following that date, by not less
than five Business Days’ written notice) as the office or offices through which it will perform its
obligations under this Agreement;

     (c) “Fees Rules” means the rules on periodic fees contained in the FSA Supervision Manual or
such other law or regulation as may be in force from time to time in respect of the payment of fees
for the acceptance of deposits;

     (d) “Fee Tariffs” means the fee tariffs specified in the Fees Rules under the activity group
A. 1 Deposit acceptors (ignoring any minimum fee or zero rated fee required pursuant to the Fees
Rules but taking into account any applicable discount rate);

     (e) “Reference Banks” means, in relation to each of the LIBOR Rate and Mandatory Cost, the
principal office in Stamford, Connecticut of UBS AG, Stamford Branch, or such other bank or banks
as may be designated by the Administrative Agent in consultation with Borrower;

     (f) “Tariff Base” has the meaning given to it in, and will be calculated in accordance with,
the Fees Rules; and

     (g) “Unpaid Sum” means any sum due and payable but unpaid by any Loan Party under the Loan
Documents.

     6. In application of the above formulae, A, B, C and D will be included in the formulae as
percentages (i.e. 5 per cent. will be included in the formula as 5 and not as 0.05). A negative
result obtained by subtracting D from B shall be taken as zero. The resulting figures shall be
rounded to four decimal places.

     7. If requested by the Administrative Agent, each Reference Bank shall, as soon as practicable
after publication by the Financial Services Authority, supply to the Administrative

 

 

Agent, the rate of charge payable by that Reference Bank to the Financial Services Authority
pursuant to the Fees Rules in respect of the relevant financial year of the Financial Services
Authority (calculated for this purpose by that Reference Bank as being the average of the Fee
Tariffs applicable to that Reference Bank for that financial year) and expressed in GBP per £1
million of the Tariff Base of that Reference Bank.

     8. Each Lender shall supply any information required by the Administrative Agent for the
purpose of calculating its Additional Cost Rate. In particular, but without limitation, each Lender
shall supply the following information on or prior to the date on which it becomes a Lender:

     (a) the jurisdiction of its Facility Office; and

     (b) any other information that the Administrative Agent may reasonably require for such
purpose.

     Each Lender shall promptly notify the Administrative Agent of any change to the information
provided by it pursuant to this paragraph.

     9. The percentages of each Lender for the purpose of A and C above and the rates of charge of
each Reference Bank for the purpose of E above shall be determined by the Administrative Agent
based upon the information supplied to it pursuant to paragraphs 7 and 8 above and on the
assumption that, unless a Lender notifies the Administrative Agent to the contrary, each Lender’s
obligations in relation to cash ratio deposits and Special Deposits are the same as those of a
typical bank from its jurisdiction of incorporation with a Facility Office in the same jurisdiction
as its Facility Office.

     10. The Administrative Agent shall have no liability to any person if such determination
results in an Additional Cost Rate which over or under compensates any Lender and shall be entitled
to assume that the information provided by any Lender or Reference Bank pursuant to paragraphs 3, 7
and 8 above is true and correct in all respects.

     11. The Administrative Agent shall distribute the additional amounts received as a result of
the Mandatory Cost to the Lenders on the basis of the Additional Cost Rate for each Lender based on
the information provided by each Lender and each Reference Bank pursuant to paragraphs 3, 7 and 8
above.

     12. Any determination by the Administrative Agent pursuant to this Schedule in relation to a
formula, the Mandatory Cost, an Additional Cost Rate or any amount payable to a Lender shall, in
the absence of manifest error, be conclusive and binding on all parties to this Agreement.

     13. The Administrative Agent may from time to time, after consultation with Borrower and the
Lenders, determine and notify to all parties to this Agreement any amendments which are required to
be made to this Annex III in order to comply with any change in law, regulation or any
requirements from time to time imposed by the Bank of England, the Financial Services Authority or
the European Central Bank (or, in any case, any other authority which

 

 

replaces all or any of its functions) and any such determination shall, in the absence of manifest
error, be conclusive and binding on all parties to this Agreement.

 

 

Schedule
1.01(a)

Refinancing Indebtedness to Be Repaid

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Company	 	Description	 	Bank Name	 	Issue Date	 	Due date	 	Amount
	Novelis Inc.
	 	Bond	 	N/A	 	February 3, 2005	 	February 3, 2015	 	US$	841,000.00	 
	Novelis Inc.
	 	Revolving and Term Loans	 	Citibank as agent	 	January 10, 2005	 	January 10, 2012	 	US$	290,647,096.00	 
	Novelis Corporation
	 	Revolving and Term Loans	 	Citibank as agent	 	January 10, 2005	 	January 10, 2012	 	US$	873,672,511.50	 
	Novelis AG
	 	Revolving Loans	 	Citibank as agent	 	January 10, 2005	 	January 10, 2012	 	€	16,052,177.32	 
	Novelis Deutschland GmbH
	 	Revolving Loans	 	Citibank as agent	 	January 10, 2005	 	January 10, 2012	 	€	30,115,675.00	 
	Novelis UK Ltd.
	 	Revolving Loans	 	Citibank as agent	 	January 10, 2005	 	January 10, 2012	 	£	19,509,581.69	 

 

 

Schedule
1.01(b)

Subsidiary Guarantors

	§	 	4260848 Canada Inc.
	 
	§	 	4260856 Canada Inc.
	 
	§	 	Aluminum Upstream Holdings LLC
	 
	§	 	Novelis AG
	 
	§	 	Novelis Aluminium Holding Company
	 
	§	 	Novelis Cast House Technology Ltd.
	 
	§	 	Novelis Corporation
	 
	§	 	Novelis Deutschland GmbH
	 
	§	 	Novelis do Brasil Ltda.
	 
	§	 	Novelis Europe Holdings Limited
	 
	§	 	Novelis Finances USA LLC
	 
	§	 	Novelis Inc.
	 
	§	 	Novelis No. 1 Limited Partnership
	 
	§	 	Novelis PAE Corporation
	 
	§	 	Novelis South America Holdings LLC

 

 

	§	 	Novelis Switzerland SA
	 
	§	 	Novelis Technology AG
	 
	§	 	Novelis UK Ltd.

 

 

Schedule 1.01(c)

Excluded Collateral Subsidiaries

	§	 	Al Dotcom Sdn Berhad
	 
	§	 	Alcom Nikkei Specialty Coatings Sdn Berhad
	 
	§	 	Albrasilis Aluminio do Brasil Indústria e Comércio Ltda.
	 
	§	 	Eurofoil, Inc.
	 
	§	 	Isytec GmbH i.L.
	 
	§	 	Novelis Aluminium Beteiligungs GmbH
	 
	§	 	Novelis Automotive UK Ltd.
	 
	§	 	Novelis Belgique SA
	 
	§	 	Novelis Benelux N.V.
	 
	§	 	Novelis de Mexico, S.A. de C.V.
	 
	§	 	Novelis Laminés France SAS
	 
	§	 	Novelis Luxembourg SA
	 
	§	 	Novelis PAE SAS
	 
	§	 	Novelis Sweden AB

 

 

Schedule
1.01(d)

 Immaterial Subsidiaries

	§	 	Al Dotcom Sdn Berhad
	 
	§	 	Alcom Nikkei Specialty Coatings Sdn Berhad
	 
	§	 	Albrasilis Aluminio do Brasil Indústria e Comércio Ltda.
	 
	§	 	Aluminum Company of Malaysia Berhad
	 
	§	 	Eurofoil, Inc.
	 
	§	 	Isytec GmbH i.L.
	 
	§	 	Novelis Aluminium Beteiligungs GmbH
	 
	§	 	Novelis Automotive UK Ltd.
	 
	§	 	Novelis Belgique SA
	 
	§	 	Novelis Benelux N. V.
	 
	§	 	Novelis de Mexico, S.A. de C.V.
	 
	§	 	Novelis Italia S.p.A.
	 
	§	 	Novelis Laminés France SAS
	 
	§	 	Novelis PAE SAS
	 
	§	 	Novelis Sweden AB

 

 

Schedule 1.01(e)

Specified Holders

ADITYA BIRLA NUVO LIMITED

BIRLA GROUP HOLDINGS PRIVATE LIMITED

BIRLA INSTITUTE OF TECHNOLOGY AND SCIENCE

GLOBAL HOLDINGS PRIVATE LIMITED

GRASIM INDUSTRIES LTD

HERITAGE HOUSING FINANCE LIMITED

IGH HOLDINGS PRIVATE LIMITED

MANAV INVESTMENT & TRADING CO. LTD.

MANGALAM SERVICES LIMITED

PILANI INVESTMENT & IND. CORP. LTD.

TGS INVESTMENT AND TRADE PRIVATE LIMITED

TRAPTI TRADING & INVESTMENTS PVT LTD

TRUSTEE

TURQUOISE INVESTMENT AND FINANCE P LIMITED

UMANG COMM. CO. LTD

ADITYA VIKRAM KUMAR MANGALAM BIRLA HUF

KUMAR MANGALAM BIRLA

KUMAR MANGALAM BIRLA F & N G OF ANANYASHREE BIRLA

KUMAR MANGALAM BIRLA KARTA OF AVKM BIRLA HUF

NEERJA BIRLA

RAJASHREE BIRLA

VASAVADATTA BAJAJ

 

 

In addition, any persons Controlled by the persons listed above shall also constitute a Specified
Holder or so long as such person is Controlled by a Specified Holder.

Notwithstanding the foregoing if Control of any of the persons listed above (an “Original
Holder”)changes such that any such person ceases to be directly or indirectly Controlled by the
same persons which Control such persons as of the Closing Date (other than another person which is
a Specified Holder after giving effect to this sentence), such Original Holder shall cease to
constitute a Specified Holder

 

 

Schedule 3.06(c)

 Violations or Proceedings

	§	 	Novelis Inc. has filed an action against a Spanish affiliate
of Alcoa, Inc. (“Alcoa”) that
it believes is infringing on one of Novelis Inc.’s litho product pretreatment patents. Novelis
Inc. owns a family of patents covering an electrolytic method for cleaning aluminum sheet that
is used as a pretreatment for lithographic sheet, which includes European patent 0795048. This
European patent was validated in Spain and corresponds to U.S. patent 5,997,721. Novelis Inc.
became aware that the Spanish affiliate of Alcoa might be infringing this patent at its
facility in Alicante, Spain, and has requested that a Spanish court appoint an expert to
conduct a “verification of facts” as permitted under Spanish law. Such expert conducted an
inspection of the Alcoa facility and their related documents in the fourth quarter of 2006.
The expert’s report indicates that Alcoa is using the patented process. Novelis has now filed
an infringement action against Alcoa, and Alcoa has counterclaimed that the patent in question
is not valid.

 

 

Schedule 3.17

Pension Matters

Novelis UK Pension Plan

The Novelis UK Pension Plan is a defined benefit scheme, with currently 950 active members, 730
deferred members and ~880 pensioners. The sponsoring employer is Novelis UK Ltd. On the 1st of
January 2006 around 575 Novelis employees who had participated in the British Alcan RILA Plan
became active contributing members of the Novelis UK Pension Plan, with 377 (65%) of them electing
to keep their past service with the British Alcan RILA Plan. At the same time the Novelis UK
Pension Plan was closed to new members with a defined contribution plan being set up for new
employees.

 

 

Schedule 3.19

 Insurance

1) Property Insurance Summary

“ALL RISK” PROPERTY DAMAGE, MACHINERY BREAKDOWN & BUSINESS INTERRUPTION INSURANCE COVERAGE

July 1, 2007 – July 1, 2008

NAMED INSURED:

	 	§	 	Novelis Inc. and/or its affiliated, subsidiary and associated companies and/or
corporations and the Insured’s interest in partnerships and joint ventures as now exist or
may hereafter be constituted or acquired and any party in interest which the Insured is
responsible to insure.
	 
	 	§	 	Including the Insured’s interest in the following joint ventures:

	 	o	 	Logan Aluminum Inc.
	 
	 	o	 	Aluminium Norf GmbH (to be insured 100%)

PERIOD OF INSURANCE:

From
July 1, 2007, to July 1, 2008

Both Dates at 12:01 am standard time at the place where the Property Insured is located.

COVERAGE DETAILS:

Property Insured

All real and personal property of every kind, nature and description except as may hereafter be
excluded including but not limited to:

	 	§	 	All property in which the Insured has an insurable interest including but not limited
to property owned, used, leased or intended for use by the Insured, or hereafter
constructed, erected, installed, or acquired. In the event of loss or damage, the Insurers
agree to accept and consider the Insured as sole and unconditional owner of improvements
and betterments, notwithstanding any contract or leases to the contrary.
	 
	 	§	 	All property of others in the Insured’s care, custody and control and/or for which the
Insured may be legally liable and/or under an obligation and/or has assumed responsibility
to provide insurance.
	 
	 	§	 	All property which is required to be specifically insured by reason of any statute.

 

 

Perils Covered

	 	§	 	All Perils of direct physical loss or damage including Machinery Breakdown and
Business Interruption, to the Property Insured by any cause whatsoever including
Earthquake, Windstorm, and Flood.

LIMITS OF LIABILITY:

U.S. $750,000,000 EACH OCCURRENCE

	 	§	 	Combined for Property Damage, including Machinery Breakdown and Business
Interruption
excess of the DEDUCTIBLE LEVELS and subject to the following ground-up sub-limits,
where applicable, as described below:

GROUND-UP PROGRAM SUB-LIMITS

	 	 	 	 	 	 	 
	Contingent Business
Interruption and
Contingent Extra Expense
(Direct Suppliers and/or
Customers)

	 	$	200,000,000	 	 	each and every
occurrence for BI.
except,
	 
	 	 	 	 	 	 
	 

	 	$	25,000,000	 	 	each and every
occurrence combined
for PD & BI from
interruption emanating
from earthquake in the
New Madrid zone.
	 
	 	 	 	 	 	 
	Course of Construction

	 	$	100,000,000	 	 	each and every
occurrence combined
for PD & BI including
Advance loss of
Profits.
	 
	 	 	 	 	 	 
	Debris Removal

	 	$	50,000,000	 	 	each and every
occurrence for PD or
25% of the loss,
whichever is greater.
	 
	 	 	 	 	 	 
	Decontamination Expenses

	 	$	50,000,000	 	 	each and every
occurrence for PD.
	 
	 	 	 	 	 	 
	Defense Costs

	 	$	5,000,000	 	 	each and every
occurrence combined
for PD & BI.
	 
	 	 	 	 	 	 
	Demolition and Increased
Cost of Construction

	 	$	100,000,000	 	 	each and every
occurrence combined
for PD & BI.
	 
	 	 	 	 	 	 
	Earthquake

	 	$	750,000,000	 	 	each and every
occurrence combined
for PD & BI and in the
annual aggregate,
except

 

 

	 	 	 	 	 	 	 
	 

	 	$	100,000,000	 	 	each and every occurrence combined for PD &
BI and in the annual aggregate for Chile.
	 
	 	 	 	 	 	 
	 

	 	$	300,000,000	 	 	each and every occurrence combined for PD &
BI and in the annual aggregate for China.
	 
	 	 	 	 	 	 
	 

	 	$	100,000,000	 	 	each and every occurrence combined for PD &
BI and in the annual aggregate for Columbia.
	 
	 	 	 	 	 	 
	 

	 	$	100,000,000	 	 	each and every occurrence combined for PD &
BI and in the annual aggregate for Guam.
	 
	 	 	 	 	 	 
	 

	 	$	100,000,000	 	 	each and every occurrence combined for PD &
BI and in the annual aggregate for
Indonesia.
	 
	 	 	 	 	 	 
	 

	 	$	100,000,000	 	 	each and every occurrence combined for PD &
BI and in the annual aggregate for Israel.
	 
	 	 	 	 	 	 
	 

	 	$	300,000,000	 	 	each and every occurrence combined for PD &
BI and in the annual aggregate for Mexico.
	 
	 	 	 	 	 	 
	 

	 	$	100,000,000	 	 	each and every occurrence combined for PD &
BI and in the annual aggregate for Peru.
	 
	 	 	 	 	 	 
	 

	 	$	100,000,000	 	 	each and every occurrence combined for PD &
BI and in the annual aggregate for Portugal.
	 
	 	 	 	 	 	 
	 

	 	$	100,000,000	 	 	each and every occurrence combined for PD &
BI and in the annual aggregate for Taiwan.
	 
	 	 	 	 	 	 
	 

	 	$	100,000,000	 	 	each and every occurrence combined for PD &
BI and in the annual aggregate for
Venezuela.
	 
	 	 	 	 	 	 
	 

	 	$	100,000,000	 	 	each and every occurrence

 

	 	 	 	 	 	 	 
	 

	 	 	 	 	 	combined for PD & BI and in the
annual aggregate for Turkey
	 
	 	 	 	 	 	 
	 

	 	$	25,000,000	 	 	each and every occurrence
combined for PD & BI and in the
annual aggregate for California.
This sub-limit applies on a
cumulative basis for all
coverage triggered by earthquake
in this zone.
	 
	 	 	 	 	 	 
	 

	 	$	25,000,000	 	 	each and every occurrence
combined for PD & BI and in the
annual aggregate for Japan. This
sub-limit applies on a
cumulative basis for all
coverage triggered by earthquake
in this zone.
	 
	 	 	 	 	 	 
	 

	 	$	25,000,000	 	 	each and every occurrence
combined for PD &d BI and in the
annual aggregate for New
Zealand. This sub-limit applies
on a cumulative basis for all
coverage triggered by earthquake
in this zone.
	 
	 	 	 	 	 	 
	 

	 	$	50,000,000	 	 	each and every occurrence
combined for PD & BI and in the
annual aggregate for New Madrid
(sub-limit does not apply to the
Logan facility).
	 
	 	 	 	 	 	 
	 

	 	$	50,000,000	 	 	each and every occurrence
combined for PD & BI and in the
annual aggregate for Pacific
Northwest.
	 
	 	 	 	 	 	 
	 

	 	$	50,000,000	 	 	each and every occurrence
combined for PD & BI and in the
annual aggregate for Philippines.
	 
	 	 	 	 	 	 
	Extra / Expediting Expenses

	 	$	200,000,000	 	 	combined each and every
occurrence for PD & BI.
	 
	 	 	 	 	 	 
	Fine Arts

	 	$	25,000,000	 	 	each and every occurrence for PD.
	 
	 	 	 	 	 	 
	Fire Fighting Expenses
Including Cost of
Extinguishing Materials

	 	$	25,000,000	 	 	each and every occurrence for PD.

 

 

	 	 	 	 	 	 	 
	Flood
	 	$	750,000,000	 	 	each and every occurrence
combined for PD & BI and in the
annual aggregate except,
	 
	 	 	 	 	 	 
	 
	 	$	100,000,000	 	 	each and every occurrence
combined for PD & BI and in the
annual aggregate for properties
situated in a 100 year
floodplain.
	 
	 	 	 	 	 	 
	 
	 	$	100,000,000	 	 	each and every occurrence
combined for PD & BI and in the
annual aggregate for flood in
the Netherlands.
	 
	 	 	 	 	 	 
	Interruption By Civil or Military
Authority
	 	$	100,000,000	 	 	each and every occurrence for PD & BI or 30 consecutive days,
whichever is less.
	 
	 	 	 	 	 	 
	Interruption of Ingress and/or Egress
	 	$	100,000,000	 	 	each and every occurrence for PD
& BI or 30 consecutive days,
whichever is less.
	 
	 	 	 	 	 	 
	 
	 	$	100,000,000	 	 	each and every occurrence combined for PD and BI.
	 
	 	 	 	 	 	 
	Impounded Water
Land and Water Contaminant or Pollutant Cleanup, Removal and Disposal
	 	$	100,000	 	 	each and every occurrence for PD.
	 
	 	 	 	 	 	 
	Leasehold Interest
	 	$	100,000,000	 	 	each and every occurrence for BI.
	 
	 	 	 	 	 	 
	Neighbour’s Recourse Liability
	 	$	15,000,000	 	 	each and every occurrence
combined for PD & BI.
	 
	 	 	 	 	 	 
	Newly Acquired Location
	 	$	100,000,000	 	 	each and every occurrence
combined for PD & BI.
	 
	 	 	 	 	 	 
	Non-Admitted Tax Liability
	 	$	150,000,000	 	 	each and every occurrence.
	 
	 	 	 	 	 	 
	Pot Line Freeze Up
	 	$	100,000,000	 	 	each and every occurrence
combined for PD and BI.
	 
	 	 	 	 	 	 
	Research & Development
	 	$	25,000,000	 	 	each and every occurrence
combined for PD & BI.
	 
	 	 	 	 	 	 
	Recapture of Investment Incentives
	 	$	50,000,000	 	 	each and every occurrence.
	 
	 	 	 	 	 	 
	Royalties
	 	$	10,000,000	 	 	each and every occurrence

 

 

	 	 	 	 	 	 	 
	Service Interruption
	 	$	200,000,000	 	 	each and every
occurrence combined
for PD & BI, except
	 
	 	 	 	 	 	 
	 
	 	$	25,000,000	 	 	each and every
occurrence combined
for PD & BI from
interruption
emanating from
earthquake in the
New Madrid zone.
	 
	 	 	 	 	 	 
	Transit
	 	$	25,000,000	 	 	each and every
occurrence combined
for PD & BI.
	 
	 	 	 	 	 	 
	Transmission and Distribution Lines
	 	$	10,000,000	 	 	each and every
occurrence combined
for direct loss
causing PD & BI.
	 
	 	 	 	 	 	 
	Unnamed Location
	 	$	100,000,000	 	 	each and every
occurrence combined
for PD & BI.

DEDUCTIBLE LEVELS:

          $2,500,000 each and every occurrence combined for Property Damage, Business
Interruption and Machinery Breakdown coverage for locations with insurable values
exceeding US $100,000,000.

          $1,000,000 each and every occurrence combined for Property Damage, Business
Interruption and Machinery Breakdown coverage for locations with insurable values equal
to or less than US $100,000,000.

BASIS OF VALUATION

Replacement cost and as further stipulated within the attached policy
wording.

DIFFERENCE IN CONDITIONS

Master Policy provides coverage where conditions of the locally integrated and/or non-integrated
policies differ from the Master Policy and specifically where the conditions of the Master Policy
are broader.

DIFFERENCE IN LIMITS

Master Policy provides coverage where the difference between the limits of liability stated in any
locally integrated and/or non-integrated policies are less than the Master Policy.

TERRITORY

Worldwide except no coverage will be provided in the following countries:

 

 

Afghanistan, Albania, Algeria, Angola, Armenia, Azerbaijan, Bosnia and Herzegovina, Cambodia, Chad,
Congo, Cuba, Chechnya, Georgia, Iraq, Iran, Kyrgyszstan, Laos, Lebanon, Liberia, Montenegro,
Nigeria, North Korea, Pakistan, Serbia, Somalia, Syria, Tajikhistan, Tchechnia, Turkmenistan,
Uzbekistan, Yugoslavia and Zaire.

EXCLUSIONS:

	 	§	 	MARINE EXPORT SHIPMENTS
	 
	 	§	 	MARINE IMPORT SHIPMENTS
	 
	 	§	 	AIRCRAFT / WATERCRAFT
	 
	 	§	 	LAND / WATER
	 
	 	§	 	LABOUR DISTURBANCES
	 
	 	§	 	WAR / NUCLEAR DEVICE / REBELLION / SEIZURE BY PUBLIC
	 
	 	§	 	AUTHORITY / CONTRABAND OR ILLEGAL TRADE
	 
	 	§	 	NUCLEAR
	 
	 	§	 	FRAUD
	 
	 	§	 	WEAR AND TEAR
	 
	 	§	 	CROPS or STANDING TIMBER
	 
	 	§	 	CURRENCY / PREVIOUS METALS
	 
	 	§	 	OFFSHORE PROPERTY
	 
	 	§	 	VEHICLES
	 
	 	§	 	MYSTERIOUS DISAPPEARANCE
	 
	 	§	 	CHANGES IN TEMPERATURE
	 
	 	§	 	PROPERTY SOLD
	 
	 	§	 	UNDERGROUND MINES
	 
	 	§	 	satellites / spacecraft
	 
	 	§	 	manufacturing or processing errors
	 
	 	§	 	errors in design
	 
	 	§	 	cost of making good defective design or specifications
	 
	 	§	 	errors in processing / manufacturing product
	 
	 	§	 	settling, cracking, shrinkage
	 
	 	§	 	remote loss / delay or loss of market
	 
	 	§	 	VERMIN, INSECTS or animals
	 
	 	§	 	LOCAL, STATE OR NATIONAL GOVERNMENT CATASTROPHE POOLS
	 
	 	§	 	POLLUTION
	 
	 	§	 	FINES / PENALTIES
	 
	 	§	 	10 YEAR FLOOD PLAIN (based on the renewal schedule of locations there are currently no
locations situated in a 10 year flood plain)
	 
	 	§	 	MICRO ORGANISM
	 
	 	§	 	BIOLOGICAL / CHEMICAL MATERIALS

CANCELLATION:

Insurance may be cancelled by the insurer by mailing at least 90 days’ prior written notice to the
Named Insured, except for non-payment of premium, which is 15 days by written notice.

CURRENCY:
U.S. DOLLARS

 

 

ENDORSEMENTS:

	 	–	 	Electronic Date Recognition Clarification Clause
	 
	 	–	 	Computer Virus Clause
	 
	 	–	 	War and Terrorism Exclusion Endorsement
	 
	 	–	 	Asbestos Exclusion Endorsement

2) Liability Insurance Summary

Summary of Insurance-Comprehensive General Liability:

	 	 	 	 	 
	Insured:	 	Novelis Inc.
	 
	 	 	 	 
	Insurer:	 	Zurich Insurance Company
	 
	 	 	 	 
	Primary Policy Number:	 	LA 37’940B
	 
	 	 	 	 
	Policy Period:	 	April 1, 2007, to April 1, 2008
	 
	 	 	 	 
	Limits Of Liability:	 	US $75,000,000 per claim made for all insured losses combined,
including loss expense, subject to an annual aggregate of US
$150,000,000 for all claims made within one insurance year
irrespective of whether the claims are attributable to one or more
than one occurrence.
	 
	 	 	 	 
	 	 	Sub-Limits for Additional Coverages
	 
	 	 	 	 
	 	 	US $75,000,000 per claim made and in the aggregate per
insurance year for the following Additional Coverages combined:
	 
	 	 	 	 
	 
	 	a)	 	Personal Injury Liability
	 
	 	 	 	 
	 
	 	b)	 	Advertiser’s Liability
	 
	 	 	 	 
	 
	 	c)	 	Employer’s Liability
	 
	 	 	 	 
	 
	 	d)	 	Employee Benefits Liability
	 
	 	 	 	 
	 
	 	e)	 	Loss of Use
	 
	 	 	 	 
	 
	 	f)	 	Pure financial loss
	 
	 	 	 	 
	 
	 	g)	 	Additional Coverage for Motor Vehicles

 

 

	 	 	 	 	 
	 	 	The Indemnity of Zurich is limited to:
	 
	 	 	 	 
	 
	 	a)	 	US $50,000,000 per claim made and in the aggregate per
insurance year for Product Recall Costs, and included in
this sub-limit US $15,000,000 per claim made and in the
aggregate per insurance year for Product Recall costs in
the case of insured entities that maintain no certified
quality management system under recognised standards (e.g.
ISO 9001, et seq.);
	 
	 	 	 	 
	 
	 	b)	 	US $25,000,000 per claim made and in the aggregate per
insurance year for Dismantling and Assembly Expenses;
	 
	 	 	 	 
	 
	 	c)	 	For Special Coverages according to (a) and (b) above,
the maximum limit of indemnity per claim made and in the
aggregate per insurance year remains US $50,000,000;
	 
	 	 	 	 
	 
	 	d)	 	US $400,000 per claim made and US $4,000,000 in the
aggregate per insurance year for Legal Protection in
criminal Proceedings;
	 
	 	 	 	 
	 
	 	e)	 	US $4,000,000 per claim made and in the aggregate per
insurance year for claims in respect of losses relating to
Contingent Watercraft.

	 	 	 
	Deductibles:
	 	The deductibles per claim made are as follows:
	 
	 	 
	 
	 	General Deductible for entities in Canada
	 
	 	 
	 
	 	CAD $25,000 for Product Liability
	 
	 	 
	 
	 	CAD $25,000 for other losses
	 
	 	 
	 
	 	No deductible for bodily injury claims
	 
	 	 
	 
	 	Germany
	 
	 	 
	 
	 	EUR 50,000 for Product Liability
	 
	 	 
	 
	 	In connection with the local environmental industrial
liability insurance per insurance case 10% but a minimum of
EUR 50,000 and a maximum of EUR 500,000
	 
	 	 
	 
	 	EUR 4,000 for other losses
	 
	 	 
	 
	 	No deductible for bodily injury claims
	 
	 	 
	 
	 	Italy
	 
	 	 
	 
	 	EUR 50,000
	 
	 	 
	 
	 	South Korea
	 
	 	 
	 
	 	US $20,000
	 
	 	 
	 
	 	No deductible for bodily injury claims
	 
	 	 
	 
	 	Switzerland
	 
	 	 
	 
	 	CHF 30,000 for Product Liability
	 
	 	 
	 
	 	CHF 6,000 for other losses
	 
	 	 
	 
	 	No deductible for bodily injury claims

 

 

	 	 	 
	 

	 	United Kingdom
	 
	 	 
	 

	 	GBP 10,000 for Product Liability
	 
	 	 
	 

	 	GBP 2,000 for other losses
	 
	 	 
	 

	 	No deductible for bodily injury claims
	 
	 	 
	 

	 	United States of America (USA)
	 
	 	 
	 

	 	US $1,000,000 for losses which occur and/or are litigated in the
USA only
	 
	 	 
	 

	 	US $25,000 for other losses
	 
	 	 
	 

	 	Belgium, France, Spain
	 
	 	 
	 

	 	EUR 20,000 for Product Liability
	 
	 	 
	 

	 	EUR 4,000 for other losses
	 
	 	 
	 

	 	No deductible for bodily injury claims
	 
	 	 
	 

	 	Other Countries
	 
	 	 
	 

	 	US $20,000 for Product Liability
	 
	 	 
	 

	 	US $4,000 for other losses
	 
	 	 
	 

	 	No deductible for bodily injury claims
	 
	 	 
	 

	 	Difference in Limits Coverage
	 
	 	 
	 

	 	No deductible is applicable to Difference in Limits Coverage
	 
	 	 
	 

	 	Deductible for Special Coverages
	 
	 	 
	 

	 	Notwithstanding the other deductibles mentioned above, the deductibles for the Special Coverages amount to:
	 
	 	 
	 

	 	US $1,000,000 in respect of Novelis Inc. and its subsidiaries
for claims which are made and/or are litigated in the USA only
US $810,000 for other losses / entities
	 
	 	 
	 

	 	Novelis Inc. participates in the Program with an annual program
deductible of US $950,000 per claim made in excess of the
applicable deductible(s) with an annual aggregate of US
$2,000,000.
	 
	 	 
	Territorial Limits:

	 	Worldwide
	 
	 	 
	Coverage:

	 	The policy covers legal liability arising out of the companies
and their activities, in respect of business premises, property,
operations and product liability risks for bodily injury and
property damage.

 

 

	 	 	 
	Insuring and Defense
Agreement:
	 	The coverage provided by Zurich consists of the indemnity for
justified insured claims and of any loss expense, including
defense costs, against both justified and unjustified insured
claims. Payments under these coverages will be made by
Zurich, on behalf of the insureds. They will include but not be
restricted to:

	 	 	 	 	 
	 
	 	a)	 	Interest on damages;
	 
	 	 	 	 
	 
	 	b)	 	Premiums on bonds to release attachments for an amount
not in excess of the limit of indemnity of this contract as
well as all premiums on appeal bonds required in any
above defended claim;
	 
	 	 	 	 
	 
	 	c)	 	Loss reduction expenses;
	 
	 	 	 	 
	 
	 	d)	 	Cost of experts, lawyers, court, arbitration and mediation
expenses
	 
	 	 	 	 
	 
	 	e)	 	Litigation costs of an opposing party;
	 
	 	 	 	 
	 
	 	f)	 	Loss prevention expenses,
	 
	 	 	 	 
	 	 	And will be limited by the limit of indemnity of this contract.
	 
	 	 	 	 
	Principal Extensions:	 	Comprehensive General Liability Manuscript Policy Form which includes:

	 	 	 	 	 	 	 
	 
	 	 	 	§	 	Additional coverage for Motor Vehicles — limited to the
Limit of Indemnity and applies excess of the greater of US
$2,000,000 or the limit of indemnity of the locally existing
basic motor vehicle coverage;
	 
	 	 	 	 	 	 
	 
	 	 	 	§	 	Advertisers’ Liability;
	 
	 	 	 	 	 	 
	 
	 	 	 	§	 	Agreed Waiver of Liability;
	 
	 	 	 	 	 	 
	 
	 	 	 	§	 	Assumption of Legal Third-Party Liability;
	 
	 	 	 	 	 	 
	 
	 	 	 	§	 	Condominium Owners;
	 
	 	 	 	 	 	 
	 
	 	 	 	§	 	Cross Liability;
	 
	 	 	 	 	 	 
	 
	 	 	 	§	 	Damage to Property in the Custody of or Worked Upon by
the Insured;
	 
	 	 	 	 	 	 
	 
	 	 	 	§	 	Effects of Ionizing Radiation;
	 
	 	 	 	 	 	 
	 
	 	 	 	§	 	Employee Benefits Liability;
	 
	 	 	 	 	 	 
	 
	 	 	 	§	 	Employer’s Liability — limited to the Limit of Indemnity and
applies excess of:

	 	 	 	 	 	 	 
	 
	 	 	 	§	 	US $100,000 for the USA
	 
	 	 	 	 	 	 
	 
	 	 	 	§	 	CDN $1,000,000 for other countries

	 	 	 	 	 	 	 
	 
	 	 	 	§	 	Extension of the Statutory Time-Limits;
	 
	 	 	 	 	 	 
	 
	 	 	 	§	 	Fault on the Part of Independent Contractors;
	 
	 	 	 	 	 	 
	 
	 	 	 	§	 	Identification or Elimination of Defects and Damage;
	 
	 	 	 	 	 	 
	 
	 	 	 	§	 	Insured Ancillary Risks;
	 
	 	 	 	 	 	 
	 
	 	 	 	§	 	Joint Ventures;
	 
	 	 	 	 	 	 
	 
	 	 	 	§	 	Leased Telecommunications Installations;
	 
	 	 	 	 	 	 
	 
	 	 	 	§	 	Leasehold Property;
	 
	 	 	 	 	 	 
	 
	 	 	 	§	 	Legal liability arising from the granting of licenses
conferring rights in respect of intangible goods;
	 
	 	 	 	 	 	 
	 
	 	 	 	§	 	Legal Protection in Criminal Proceedings;
	 
	 	 	 	 	 	 
	 
	 	 	 	§	 	Loss of Use;
	 
	 	 	 	 	 	 
	 
	 	 	 	§	 	Loss during Loading and Unloading;

 

 

	 	 	 	 	 	 	 
	 
	 	 	 	§	 	Losses Incurred in Mixing, Combining and Further
Processing;
	 
	 	 	 	 	 	 
	 
	 	 	 	§	 	Losses Relating to Environmental Damage Caused by
Installations for the Storage, Treatment or Disposal of
Waste or Waste Products;
	 
	 	 	 	 	 	 
	 
	 	 	 	§	 	Machinery Clause;
	 
	 	 	 	 	 	 
	 
	 	 	 	§	 	Non Owned Aviation Liability / Airport Premises — limited
to the Limit of Indemnity and applies excess of CDN
$5,000,000;
	 
	 	 	 	 	 	 
	 
	 	 	 	§	 	Objection of Late Complaints;
	 
	 	 	 	 	 	 
	 
	 	 	 	§	 	Personal Injury Liability;
	 
	 	 	 	 	 	 
	 
	 	 	 	§	 	Personal Liability;
	 
	 	 	 	 	 	 
	 
	 	 	 	§	 	Pure Financial Loss;
	 
	 	 	 	 	 	 
	 
	 	 	 	§	 	Railroad Branch Lines and
Sidetracks and Related Installations and Rolling Stock;
	 
	 	 	 	 	 	 
	 
	 	 	 	§	 	Real Estate and Installations not Used for Business
Purposes;
	 
	 	 	 	 	 	 
	 
	 	 	 	§	 	Use of Public Highways for Internal Works Traffic.

	 	 	 
	Special Coverages:
	 	Special coverages shall mean the following additional coverages:

	 	 	 	 	 	 	 
	 
	 	 	 	§	 	Dismantling and assembly expenses;
	 
	 	 	 	 	 	 
	 
	 	 	 	§	 	Product recall costs;
	 
	 	 	 	 	 	 
	 
	 	 	 	§	 	Loss prevention expenses;
	 
	 	 	 	 	 	 
	 
	 	 	 	§	 	Testing and sorting costs.

	 	 	 
	Principal Exclusions:
	 	The policy excludes the following:

	 	 	 	 	 	 	 
	 
	 	 	 	§	 	Own Damages;
	 
	 	 	 	 	 	 
	 
	 	 	 	§	 	Bodily injury to employees;
	 
	 	 	 	 	 	 
	 
	 	 	 	§	 	Employment-related practices;
	 
	 	 	 	 	 	 
	 
	 	 	 	§	 	Workers’ Compensation and Occupational Disease;
	 
	 	 	 	 	 	 
	 
	 	 	 	§	 	Charterers’ Liability;
	 
	 	 	 	 	 	 
	 
	 	 	 	§	 	Damage to property in the custody of or worked upon by the Insured;
	 
	 	 	 	 	 	 
	 
	 	 	 	§	 	Radioactivity;
	 
	 	 	 	 	 	 
	 
	 	 	 	§	 	Civil War;
	 
	 	 	 	 	 	 
	 
	 	 	 	§	 	Special Substances and Risks;
	 
	 	 	 	 	 	 
	 
	 	 	 	§	 	Intentional Act;
	 
	 	 	 	 	 	 
	 
	 	 	 	§	 	Terrorism in the USA;
	 
	 	 	 	 	 	 
	 
	 	 	 	§	 	Losses relating to environmental damage except for (1)
consequences of a sudden event (2) losses relating to
environmental damage caused by installations for
composting or short-term storage on waste products or
purification of waste water.

 

 

Schedule 3.21

Acquisition Documents

	(i)	 	Each Acquisition Document

	 	§	 	Arrangement Agreement, dated as of February 10, 2007, by and among Hindalco
Industries Limited, AV Aluminum Inc. and Novelis Inc.
	 
	 	§	 	Proxy Statement Pursuant to Section 14(a) of the Securities Exchange Act of 1934,
dated April 5, 2007, by Novelis Inc.
	 
	 	§	 	Final Order Approving the Arrangement, dated May 14, 2007, by the Ontario Superior
Court of Justice
	 
	 	§	 	Articles of Arrangement, dated May 15, 2007, by and among Novelis Inc., AV Metals
Inc. and Hindalco Industries Limited

	(ii)	 	Each material Senior Note Document

	 	§	 	Indenture, relating to the
71/4% Senior Notes due 2015, dated as of February 3, 2005,
between Novelis Inc., the guarantors named on the signature pages thereto and The Bank of New York
Trust Company, N.A., as trustee (the “Indenture”)
	 
	 	§	 	Registration Rights Agreement, dated as of February 3, 2005, among Novelis Inc., the
guarantors named on the signature pages thereto, Citigroup Global Markets Inc., Morgan Stanley & Co.
Incorporated and UBS Securities LLC, as Representatives of the Initial Purchasers
	 
	 	§	 	Supplemental Indenture, dated as of November 29, 2006, between Novelis Inc., Novelis
Finances USA LLC, Novelis South America Holdings LLC, Aluminum Upstream Holdings LLC and the
Bank of New York Trust Company, N.A.
	 
	 	§	 	Supplemental Indenture, dated as of May 14, 2007, between Novelis Inc., Novelis No. 1
Limited Partnership, the guarantors named on the signature pages on the Indenture and The Bank of
New York Trust Company, N.A., as trustee

	(iii)	 	Each material Revolving Credit Loan Document

	 	§	 	Revolving Credit Agreement, dated July 6, 2007, among Novelis Inc., as Canadian
Borrower, Novelis Corporation and the other U.S. subsidiaries of the Canadian Borrower signatory
thereto,
as Initial U.S. Borrowers, Novelis UK Ltd, as U.K. Borrower, and Novelis AG, as Swiss
Borrower, AV Aluminum Inc., the Subsidiary Guarantors, the Lenders, ABN Amro Bank N.V.,
as U.S./European Issuing Bank, ABN Amro Bank N.V., acting through its Canadian branch, as
Canadian Issuing Bank, ABN Amro Bank N.V., as swingline lender, ABN Amro Bank N.V., as
administrative agent for the Lenders, LaSalle Business Credit, LLC as collateral agent for
the
Secured Parties and the Issuing Bank, LaSalle Business Credit, LLC as funding agent for the
Secured Parties and the Issuing Bank, UBS Securities LLC, as syndication agent, Bank of
America, N.A., National City Business Credit, Inc. and CIT Business Credit Canada Inc., as
documentation agents, ABN Amro Bank N.V., acting through its Canadian branch, as Canadian
funding agent, ABN Amro Bank N.V., acting through its Canadian branch, as Canadian

 

 

	 	 	 	administrative agent, and ABN Amro Incorporated and UBS Securities LLC, as joint lead
arrangers and joint bookmanagers.

	 	§	 	The Revolving Credit Security Documents as defined in the Credit Agreement

	(iv)	 	Each material agreement, certificate, instrument, letter or other document delivered pursuant to
the Subordinated Debt Loan

	 	§	 	Promissory Note, dated May 15, 2007, between AV Aluminum Inc. as “Debtor” and AV Metals Inc. as
“Lender”

 

 

(v) Each material agreement, certificate, instrument, letter or other document delivered
pursuant to any other Material Indebtedness:

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	US$
	Company	 	Description	 	Bank Name	 	Issue Date	 	Due date	 	Amount
	Novelis Inc.
	 	Bond	 	N/A	 	February 3, 2005	 	February 3, 2015	 	$	1,399,159,000	 
	Novelis Korea Ltd.
	 	Loan	 	Korea Exchange Bank	 	December 28, 2004	 	December 28, 2007	 	$	70,000,000	 
	Novelis Inc.
	 	Hedging Obligation	 	N/A	 	N/A	 	N/A	 	$	81,936,375	 

 

 

Schedule 3.24

Location of Material Inventory

	 	 	 	 	 	 	 
	 	 	 	 	 	 	Subject to
	 	 	 	 	 	 	Bailee/Landlord
	Loan Party	 	Address	 	Owned/Leased	 	Letter
	Novelis Inc.
	 	7307 Meadow Avenue

Burnaby, British Columbia V5J 4Z2

Canada	 	Leased	 	No
	 
	 	 	 	 	 	 
	 
	 	1 Lappan’s Lane, P.O. Box
2000

Kingston, Ontario K7L 4Z5

Canada	 	Owned	 	N/A
	 
	 	 	 	 	 	 
	 
	 	Kingston Research and Development Center

945 Princess Street, P.O.
Box 8400

Kingston, Ontario K7L 5L9

Canada	 	Owned	 	N/A
	 
	 	 	 	 	 	 
	 
	 	2040 rue Fay, P.O. Box 1010

Saguenay, Quebec G7S 4K6

Canada	 	Owned	 	N/A
	 
	 	 	 	 	 	 
	 
	 	1909 (2150) rue Onésine-Gagnon
Lachine, Quebec, H8T 3M8
Canada	 	Leased	 	No

 

 

	 	 	 	 	 	 	 
	 	 	 	 	 	 	Subject to
	 	 	 	 	 	 	Bailee/Landlord
	Loan Party	 	Address	 	Owned/Leased	 	Letter
	Novelis 

Corporation
	 	Foil Products Division:

Executive Office:

15 13 Redding Drive

LaGrange, Georgia 30240

USA	 	Leased	 	No
	 
	 	 	 	 	 	 
	 
	 	Global Automotive Products Division:
Executive Office:

28970 Cabot Drive

Suite 500

Novi, Michigan 48377

USA	 	Leased	 	No
	 
	 	 	 	 	 	 
	 
	 	Rolled Products North America
Division:

Aurora Research and Development:

535 North Exchange Court

Aurora, Illinois 60504

USA	 	Leased	 	No
	 
	 	 	 	 	 	 
	 
	 	Berea Recycling Plant:

302 Mayde Road

Berea, Kentucky 40403

USA	 	Owned	 	N/A
	 
	 	 	 	 	 	 
	 
	 	Fairmont Light Gauge Plant:

1800 Speedway

Fairmont, West Virginia 26554

USA	 	Owned	 	N/A
	 
	 	 	 	 	 	 
	 
	 	Greensboro Recycling Plant:

1261 Willow Run Road

Greensboro, Georgia 30642

USA	 	Owned	 	N/A
	 
	 	 	 	 	 	 
	 
	 	Light Gauge Sales Office:

7421 Camel Executive Park

Charlotte NC 28226-0415

USA	 	Home office, de

minimis annual rent	 	N/A
	 
	 	 	 	 	 	 
	 
	 	Louisville Light Gauge Plant:

1430 South 13th Street

Louisville, Kentucky 40210

USA	 	Owned	 	N/A
	 
	 	 	 	 	 	 
	 
	 	Oswego Sheet Products Plant:

Lake Road North

Oswego, New York 13126

USA	 	Owned	 	N/A

 

 

	 	 	 	 	 	 	 
	 	 	 	 	 	 	Subject to
	 	 	 	 	 	 	Bailee/Landlord
	Loan Party	 	Address	 	Owned/Leased	 	Letter
	 

	 	Terre Haute Light Gauge Plant:

5901 North 13th Street

Terre Haute, Indiana 47805

USA
	 	Owned
	 	N/A
	 
	 	 	 	 	 	 
	 

	 	Warren Sheet Products Plant:

390 Griswold Avenue, NE

Warren, Ohio 44483

USA
	 	Owned
	 	N/A
	 
	 	 	 	 	 	 
	 

	 	Other:

1022 1 E. Montgomery Suite A,

Spokane, WA 99206

USA
	 	Lease, de minimis

annual rent
	 	No
	 
	 	 	 	 	 	 
	 

	 	2408 Zurlo Ct. 

Santa Rosa, California 95403

USA
	 	Home office, de

minimis annual rent
	 	No
	 
	 	 	 	 	 	 
	 

	 	475 Jennifer Lane

Grayslake, Illinois 60030

USA
	 	Home office, de

minimis annual rent
	 	No
	 
	 	 	 	 	 	 
	 

	 	14 Ledgewood Drive

Bedford, Massachusetts 01730

USA
	 	Home office, de

minimis annual rent
	 	No
	 
	 	 	 	 	 	 
	 

	 	9 Davidson Avenue

Jamesburg, New Jersey 08831

USA
	 	Home office, de

minimis annual rent
	 	No
	 
	 	 	 	 	 	 
	 

	 	1616 Westgate Circle 

Suite 105

Brentwood, Tennessee 37027

USA
	 	Sales office, de

minimis annual rent
	 	No
	 
	 	 	 	 	 	 
	Novelis UK Ltd.

	 	 Bridgnorth: 

Stourbridge Road

Bridgnorth

WV 5 6AW

United Kingdom
	 	Leased
	 	No
	 
	 	 	 	 	 	 
	 

	 	Latchford:

Thelwall Lane

Warrington, Cheshire

WA41NP

United Kingdom
	 	Owned
	 	N/A
	 
	 	 	 	 	 	 
	 

	 	Banbury:

5th Floor

Beaumont House, Southam Road

Banbury, Oxfordshire

United Kingdom
	 	Leased
	 	No

 

 

	 	 	 	 	 	 	 
	 	 	 	 	 	 	Subject to
	 	 	 	 	 	 	Bailee/Landlord
	Loan Party	 	Address	 	Owned/Leased	 	Letter
	 
	 	Bilston: 

Unit 13 Bilston Business Centre,

Dudley Street

Bilston

Wolverhampton

WV14 0LA

United Kingdom
	 	Leased
	 	No
	 
	 	 	 	 	 	 
	Novelis do
Brasil Ltda.
	 	Candeias: 

Via das Torres, S/N° — Centro

Industrial de Aratu

Candeias, BA

CEP 43800-000

Brazil
	 	N/A for Brazil
	 	N/A for Brazil
	 
	 	 	 	 	 	 
	 
	 	Ouro Preto:
Av. Américo R. Gianetti, 521 — Saramenha
Ouro Preto, MG
CEP 35400-000
Brazil	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	Pindamonhangaba:
Av. Buriti, 1087 — Feital
Pindamonhangaba, SP
CEP 12441-270
Brazil	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	Santo André:

R. Felipe Camarão, 414 — Utinga

Santo André, SP

CEP 09220-902

Brazil	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	Belo Horizonte:

Av. do Contorno, 8.000, sala 702

Centre — Belo Horizonte, MG

CEP

Brazil	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	Hydropower Plant — Fumaça:

Est. Miguel Rodrigues a Barroca

S/N° — Cachoeira do Brumado

Mariana, MG

CEP 35424-000

Brazil	 	 	 	 

 

 

	 	 	 	 	 	 	 
	 	 	 	 	 	 	Subject to
	 	 	 	 	 	 	Bailee/Landlord
	Loan Party	 	Address	 	Owned/Leased	 	Letter
	 
	 	Hydropower Plant — Furquim:

Estrada Acesso à Usina de Furquim S/N°

Mariana, MG

CEP 35426-000

Brazil	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	Hydropower Plant — Brecha:
Fazenda Usina da Brecha, S/N° —

Piranga, Guaraciaba, MG

CEP 35436-000

Brazil	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	Hydropower Plant — Salto:
Usina Santo Antonio do Salto S/N°

Ouro Preto, MG

CEP 35430-000

Brazil	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	Hydropower Plant — Brito:
Usina Estrada do Brito S/N° — Brito

Ponte Nova, MG

CEP 35301-970

Brazil	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	Bauxite Mine — Fazenda
Vargem:
Mina Fazenda da Vargem, S/N°
Santa Bárbara, MG
CEP 35960-000
Brazil	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	Bauxite Mine — Antonio Pereira:

Est. de Acesso a Serra Antonio
Pereira, S/N°

Ouro Preto, MG

CEP 35411-000

Brazil	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	Bauxite Mine — Monjolo:

Mina Jazida Monjolo S/N°

Mariana, MG

CEP 35420-000

Brazil	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	Bauxite Mine — Fazenda do Lopes
Fazenda do Lopes, S/N°
Caeté, MG
CEP 34800-000
Brazil	 	 	 	 

 

 

	 	 	 	 	 	 	 
	 	 	 	 	 	 	Subject to
	 	 	 	 	 	 	Bailee/Landlord
	Loan Party	 	Address	 	Owned/Leased	 	Letter
	 
	 	Bauxite Mine — Serra do Maquiné

Mina Serra do Maquiné S/N°

Caeté, MG

CEP 34800-000

Brazil	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	Bauxite Mine — Fazenda Gandarela e
Mato Grosso
Fazenda Gandarela e Mato Grosso

S/N°, Santa Bárbara, MG

CEP 35960-000

Brazil	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	Bauxite Mine — Galo

Fazenda Mina Galo S/N° — Distrito

de Carfanaum

Faria Lemos, MG

CEP 36840-000

Brazil	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	Bauxite Mine Lagoa Seca

Estrada de Acesso à Mina Lagoa

Seca, S/N° — Itabirito — MG

CEP 35450-000

Brazil	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	Consórcio Candonga (a consortium with CVRD — Cia. Vale Rio Doce)
Estrada Acesso à Santana do
Deserto, km 12
Rio Doce, MG

CEP 35442-000
Brazil	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	Warehouse — Aratu

Via Matoim S/N° — Aratu

Candeias, BA

Brazil

CEP 43800-000	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	Warehouse — Acuruí

Estrada de Capanema a Acuruí
S/N°

Itabirito, MG

CEP 35340-000

Brazil	 	 	 	 
	 
	 	 	 	 	 	 
	Novelis 

Deutschland 

GmbH
	 	Novelis Packaging Benelux:
Venuslaan 14
3318 JX Dordrecht
Netherlands	 	 	 	 

 

 

	 	 	 	 	 	 	 
	 	 	 	 	 	 	Subject to
	 	 	 	 	 	 	Bailee/Landlord
	Loan Party	 	Address	 	Owned/Leased	 	Letter
	 
	 	Novelis Deutschland GmbH

Sales Office France:

26, rue Rennequin — B12

75017 Paris 

France	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	Novelis Deutschland GmbH

Werk Berlin

Holzhauser Strasse 96-1 00

13509 Berlin

Germany	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	Novelis Deutschland GmbH

Nordic Office Denmark

Ringager 4A

2605 Brondby

Denmark	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	Novelis Deutschland GmbH

Nordic Office Finland

P.O. Box 61

Kapelitie 6D

02201 Espoo

Finland	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	Novelis Market Centre Spain

Canada Real de las Merinas

3 — Planta Baja

Centro de Negocios Eisenhower

28042 Madrid

Spain	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	Novelis Deutschland GmbH

Market Centre Austria

Uchatiusgasse 4/3

1030 Wien

Österreich	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	Novelis Deutschland GmbH

Market Centre Hong Kong

39th Floor, One Exchange Square, 8

Connaught Place

Hong Kong	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	Novelis Deutschland GmbH

Market Center Hungary

Balogh Adam Koez 6

1026 Budapest

Hungary	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	Novelis Deutschland GmbH

Werk Göttingen

Hannoversche Strasse 1

37075 Göttingen

Germany	 	 	 	 

 

 

	 	 	 	 	 	 	 
	 	 	 	 	 	 	Subject to
	 	 	 	 	 	 	Bailee/Landlord
	Loan Party	 	Address	 	Owned/Leased	 	Letter
	 
	 	Novelis Deutschland GmbH

Werk Luedenscheid

Wiesenstrasse 24-30

58507 Luedenscheid

Germany	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	Novelis Deutschland GmbH

Werk Nachterstedt

Gaterslebener Strasse 1

06469 Nachterstedt

Germany	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	Sales Office Dahenfeld

(part of Werk Nachterstedt)

Industriestrasse 12/13

74172 Neckarsulm

Germany	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	Novelis Deutschland GmbH

Am Elsenwerk 30

58840 Ohle 

Germany	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	Novelis Deutschland GmbH

Representative Office

ul, Zeromskiego 38

81-826 Sopot

Poland	 	 	 	 

Locations of Collateral in Possession of Persons Other Than Any Loan Party

	 	 	 	 	 
	Loan Party	 	Address	 	Subject to Bailee/Landlord Letter
	Novelis Inc.
	 	Building #1104	 	Bailee Letter
	 
	 	14 Kenview Boulevard	 	 
	 
	 	Brampton, Ontario	 	 
	 
	 	L6T 5S1	 	 
	 
	 	Canada	 	 
	 
	 	 	 	 
	 
	 	205 Industrial Drive	 	Bailee Letter
	 
	 	Mount Forest, Ontario	 	 
	 
	 	N0G 1Z0	 	 
	 
	 	Canada	 	 
	 
	 	 	 	 
	Novelis Corporation
	 	Rexam Beverage	 	No
	 
	 	124 Carson Road	 	 
	 
	 	Birmingham, Alabama 35215	 	 
	 
	 	USA	 	 

 

 

	 	 	 	 	 
	Loan Party	 	Address	 	Subject to Bailee/Landlord Letter
	 
	 	Precision Strip	 	No
	 
	 	36000 Alabama Hwy 21	 	 
	 
	 	Talladega, Alabama	 	 
	 
	 	USA	 	 
	 
	 	 	 	 
	 
	 	Rexam Beverage	 	No
	 
	 	211 No. 51st Avenue	 	 
	 
	 	Phoenix, Arizona 85043	 	 
	 
	 	USA	 	 
	 
	 	 	 	 
	 
	 	Total Warehousing	 	No
	 
	 	4411 W. Roosevelt	 	 
	 
	 	Phoenix, Arizona 85043	 	 
	 
	 	USA	 	 
	 
	 	 	 	 
	 
	 	Rexam Beverage Can Co.	 	No
	 
	 	20730 Prairie St.	 	 
	 
	 	Chatsworth, California 91311	 	 
	 
	 	USA	 	 
	 
	 	 	 	 
	 
	 	Rexam Beverage Can Co.	 	No
	 
	 	2433 Crocker Circle	 	 
	 
	 	Fairfield, California 94533	 	 
	 
	 	USA	 	 
	 
	 	 	 	 
	 
	 	Western Intermodal	 	No
	 
	 	2801 Giant Road	 	 
	 
	 	Richmond, California 94806

USA	 	 
	 
	 	 	 	 
	 
	 	CMI Freight-Trans. Inc.	 	No
	 
	 	4900 S. Boyle Avenue	 	 
	 
	 	Vernon, California 90058	 	 
	 
	 	USA	 	 
	 
	 	 	 	 
	 
	 	TMSI Warehouse	 	No
	 
	 	16600 Table Mountain	 	 
	 
	 	Golden, Colorado 80403	 	 
	 
	 	USA	 	 
	 
	 	 	 	 
	 
	 	TMSI Warehouse	 	No
	 
	 	7725 East 88th Avenue	 	 
	 
	 	Henderson, Colorado 80640	 	 
	 
	 	USA	 	 
	 
	 	 	 	 
	 
	 	TMSI Warehouse	 	No
	 
	 	900 Metal Container Court	 	 
	 
	 	Windsor, Colorado 80550	 	 
	 
	 	USA	 	 

 

 

	 	 	 	 	 
	Loan Party	 	Address	 	Subject to Bailee/Landlord Letter
	 

	 	Rexam Beverage Can Co.
	 	No
	 

	 	Forest Park Plant 055,	 	 
	 

	 	48 Royal Drive	 	 
	 

	 	Forest Park, Georgia 30297	 	 
	 

	 	USA	 	 
	 
	 	 	 	 
	 

	 	Rexam Beverage Can Co.
	 	No
	 

	 	1120 Industrial Blvd.	 	 
	 

	 	Greensboro, Georgia 30642	 	 
	 

	 	USA	 	 
	 
	 	 	 	 
	 

	 	Rexam Beverage Can Co.
	 	No
	 

	 	480 Sibley Avenue	 	 
	 

	 	Union Point, Georgia 30669	 	 
	 

	 	USA	 	 
	 
	 	 	 	 
	 

	 	Rexam Beverage Can Co.
	 	No
	 

	 	1101 W. 43rd Street	 	 
	 

	 	Chicago, Illinois 60609	 	 
	 

	 	USA	 	 
	 
	 	 	 	 
	 

	 	C.M.I. Steel Wheel Warehouse
	 	No
	 

	 	Chicago, Illinois	 	 
	 

	 	USA	 	 
	 
	 	 	 	 
	 

	 	American Nickeloid
	 	No
	 

	 	2900 West Main Street	 	 
	 

	 	Peru, Illinois 61354	 	 
	 

	 	USA	 	 
	 
	 	 	 	 
	 

	 	Wayne Steel
	 	No
	 

	 	21901 Cottage Grove	 	 
	 

	 	Sauk Village, Illinois 60411	 	 
	 

	 	USA	 	 
	 
	 	 	 	 
	 

	 	Wells Warehouse
	 	No
	 

	 	932 Eastern Avenue	 	 
	 

	 	Connersville, Indiana 47331	 	 
	 

	 	USA	 	 
	 
	 	 	 	 
	 

	 	Eagle Steel Products
	 	No
	 

	 	5150 Loop Road	 	 
	 

	 	Jefferson, Indiana	 	 
	 

	 	USA	 	 

 

 

	 	 	 	 	 
	Loan Party	 	Address	 	Subject to Bailee /Landlord Letter
	 
	 	Precoat
	 	No
	 
	 	US Highway #12 Indiana Rte. 249	 	 
	 
	 	Portage, Indiana	 	 
	 
	 	USA	 	 
	 
	 	 	 	 
	 
	 	Triumph Industries
	 	No
	 
	 	115 E. Pennsylvania	 	 
	 
	 	Rockville, Indiana 47872	 	 
	 
	 	USA	 	 
	 
	 	 	 	 
	 
	 	City Welding
	 	No
	 
	 	193 North Dormeyer Avenue	 	 
	 
	 	Rockville, Indiana 47872	 	 
	 
	 	USA	 	 
	 
	 	 	 	 
	 
	 	Aleris Blanking & Rim Products
	 	No
	 
	 	1140 Crawford Street	 	 
	 
	 	Terre Haute, Indiana 47807	 	 
	 
	 	USA	 	 
	 
	 	 	 	 
	 
	 	Rexam Beverage Can Warehouse
	 	No
	 
	 	4001 Montdale Park Drive	 	 
	 
	 	Valparaiso, Indiana 46383	 	 
	 
	 	USA	 	 
	 
	 	 	 	 
	 
	 	Ball Metal Container
	 	No
	 
	 	4700 Whiteway Drive	 	 
	 
	 	Tampa, Florida 33617	 	 
	 
	 	USA	 	 
	 
	 	 	 	 
	 
	 	Owl’s Head
	 	No
	 
	 	187 Mitch McConnell Way	 	 
	 
	 	Bowling Green, Kentucky 42101	 	 
	 
	 	USA	 	 
	 
	 	 	 	 
	 
	 	Aleris
	 	No
	 
	 	609 Gardner Camp Road	 	 
	 
	 	Morgantown, Kentucky 42261	 	 
	 
	 	USA	 	 
	 
	 	 	 	 
	 
	 	Ryerson, Inc.
	 	No
	 
	 	920 Old Brunerstown Road	 	 
	 
	 	Shelbyville, Kentucky 40065	 	 
	 
	 	USA	 	 
	 
	 	 	 	 
	 
	 	RJ Corman
	 	No
	 
	 	444 N. Hardison	 	 
	 
	 	South Union, Kentucky	 	 
	 
	 	USA	 	 

 

 

	 	 	 	 	 
	Loan Party	 	Address	 	Subject to Bailee/Landlord Letter
	 
	 	Precision Strip Inc. 	 	No
	 
	 	446 N. Hardison Road	 	 
	 
	 	Woodburn, Kentucky 42170	 	 
	 
	 	USA	 	 
	 
	 	 	 	 
	 
	 	Steinweg
 2101 East Firt Avenue	 	     No 
	 
	 	Baltimore, Maryland 21230	 	 
	 
	 	USA	 	 
	 
	 	 	 	 
	 
	 	D & S Delivery Service     	 	No 
	 
	 	32925 Schoolcraft Road	 	 
	 
	 	Livonia, Michigan 48150	 	 
	 
	 	USA	 	 
	 
	 	 	 	 
	 
	 	Aluminum Blanking 	 	No
	 
	 	360 West Sheffield Avenue	 	 
	 
	 	Pontiac, Michigan 48340	 	 
	 
	 	USA	 	 
	 
	 	 	 	 
	 
	 	Michigan Metal Transport	 	No
	 
	 	36253 Michigan Avenue	 	 
	 
	 	Wayne, Michigan 48184	 	 
	 
	 	USA	 	 
	 
	 	 	 	 
	 
	 	Rexam Beverage Can Co.	 	No
	 
	 	139 Eva Street	 	 
	 
	 	St. Paul, Minnesota 55107
USA	 	 
	 
	 	 	 	 
	 
	 	Precoat	 	No
	 
	 	 1095 Mendell Davis Drive	 	 
	 
	 	Jackson, Mississippi 39272	 	 
	 
	 	USA	 	 
	 
	 	 	 	 
	 
	 	Rexam Beverage 	 	No
	 
	 	10800 Marina Drive	 	 
	 
	 	Olive Branch, Mississippi 38654	 	 
	 
	 	USA	 	 
	 
	 	 	 	 
	 
	 	Precoat Metals 	 	No
	 
	 	3900 Bingham St.	 	 
	 
	 	St. Louis, Missouri 63116
USA	 	 
	 
	 	 	 	 
	 
	 	Oswego Industries	 	No
	 
	 	 7 Morrill Place	 	 
	 
	 	Fulton, New York 13069	 	 
	 
	 	USA	 	 

 

 

	 	 	 	 	 
	Loan Party	 	Address	 	Subject to Bailee/Landlord Letter
	 
	 	Valeo Inc. Engine Cooling Truck Div.	 	No
	 
	 	2258 Allen Street	 	 
	 
	 	Jamestown, New York 14701	 	 
	 
	 	USA	 	 
	 
	 	 	 	 
	 
	 	Ball Corp Metal Beverage	 	No
	 
	 	95 Ballard Road	 	 
	 
	 	Middletown, New York 10940	 	 
	 
	 	USA	 	 
	 
	 	 	 	 
	 
	 	Oswego Warehousing Inc.	 	No
	 
	 	193 East Seneca Street	 	 
	 
	 	Oswego, New York 13126	 	 
	 
	 	USA	 	 
	 
	 	 	 	 
	 
	 	Scepter, Inc.	 	No
	 
	 	 11  Lamb Road	 	 
	 
	 	Seneca Falls, New York 13148	 	 
	 
	 	USA	 	 
	 
	 	 	 	 
	 
	 	Triangle Warehouse	 	No
	 
	 	8400 Triad Drive	 	 
	 
	 	Greensboro, North Carolina 27409	 	 
	 
	 	USA	 	 
	 
	 	 	 	 
	 
	 	Rexam Beverage Can Co.	 	No
	 
	 	4000 Old Milwaukee Lane	 	 
	 
	 	Winston-Salem, North Carolina 27107	 	 
	 
	 	USA	 	 
	 
	 	 	 	 
	 
	 	Precision Strip Inc.	 	No
	 
	 	88 S. Ohio Street	 	 
	 
	 	Minster, Ohio 45865
USA	 	 
	 
	 	 	 	 
	 
	 	American Utility Processors	 	No
	 
	 	 1246 Princeton St.	 	 
	 
	 	Akron, Ohio 44301	 	 
	 
	 	 	 	 
	 
	 	Specialty Metals	 	No
	 
	 	1100 Home Avenue	 	 
	 
	 	Akron, Ohio 44310	 	 
	 
	 	USA	 	 
	 
	 	 	 	 
	 
	 	Midwest Iron & Metal	 	No
	 
	 	463 Homestead Avenue	 	 
	 
	 	Dayton, Ohio 45408	 	 
	 
	 	USA	 	 

 

 

	 	 	 	 	 
	Loan Party	 	Address	 	Subject to Bailee/Landlord Letter
	 
	 	Highway Logistics Warehouse	 	No
	 
	 	1800 Production Drive	 	 
	 
	 	Findlay, Ohio 45840	 	 
	 
	 	USA	 	 
	 
	 	 	 	 
	 
	 	Rexam Beverage Can	 	No
	 
	 	2145 Cedar Street	 	 
	 
	 	Fremont, Ohio	 	 
	 
	 	USA	 	 
	 
	 	 	 	 
	 
	 	MISA Metal Processing	 	No
	 
	 	1501 Made Drive	 	 
	 
	 	Middletown, Ohio	 	 
	 
	 	USA	 	 
	 
	 	 	 	 
	 
	 	Precision Strip Inc.	 	No
	 
	 	86 South Ohio Street	 	 
	 
	 	Minster, Ohio 45865	 	 
	 
	 	USA	 	 
	 
	 	 	 	 
	 
	 	Precision Strip Inc.	 	No
	 
	 	315 Park Avenue	 	 
	 
	 	Tipp City, Ohio 45371	 	 
	 
	 	USA	 	 
	 
	 	 	 	 
	 
	 	Rexam Beverage Can	 	No
	 
	 	10444 Waterville	 	 
	 
	 	Whitehouse, Ohio 43571	 	 
	 
	 	USA	 	 
	 
	 	 	 	 
	 
	 	Main Steel Polishing	 	No
	 
	 	3805 B. Hendricks Road	 	 
	 
	 	Youngstown, Ohio 44515	 	 
	 
	 	 	 	 
	 
	 	D&M Warehouse	 	No
	 
	 	2700 SW 15th St.	 	 
	 
	 	Oklahoma City, Oklahoma 73108	 	 
	 
	 	USA	 	 
	 
	 	 	 	 
	 
	 	Rexam Beverage Can Co.	 	No
	 
	 	3400 South Council Road	 	 
	 
	 	Oklahoma City, Oklahoma 73179	 	 
	 
	 	USA	 	 
	 
	 	 	 	 
	 
	 	Rexam Beverage Can Co.	 	No
	 
	 	609 Cousar St.	 	 
	 
	 	Bishopville, South Carolina 29010	 	 
	 
	 	USA	 	 

 

 

	 	 	 	 	 
	Loan Party	 	Address	 	Subject to Bailee/Landlord Letter
	 
	 	Smelter Service 	 	No
	 
	 	 400 Arrow Mines Road	 	 
	 
	 	Mt. Pleasant, Tennessee 38474	 	 
	 
	 	USA	 	 
	 
	 	 	 	 
	 
	 	TAP	 	No
	 
	 	7207 Hoover Mason Road	 	 
	 
	 	Mt. Pleasant, Tennessee 38474	 	 
	 
	 	USA	 	 
	 
	 	 	 	 
	 
	 	Big G Warehouse 	 	No
	 
	 	190 Hawkins Drive	 	 
	 
	 	Shelbyville, Tennessee 37160	 	 
	 
	 	USA	 	 
	 
	 	 	 	 
	 
	 	Scepter, Inc.	 	No
	 
	 	 1485 Scepter Lane	 	 
	 
	 	Waverly, Tennessee 37185	 	 
	 
	 	USA	 	 
	 
	 	 	 	 
	 
	 	El Paso Distribution Center	 	No
	 
	 	1301 Joe Battle	 	 
	 
	 	El Paso, Texas
USA	 	 
	 
	 	 	 	 
	 
	 	Rexam Beverage Can Co.	 	No
	 
	 	1001 Fisher Road	 	 
	 
	 	Longview, Texas	 	 
	 
	 	USA	 	 
	 
	 	 	 	 
	 
	 	Gulf Winds 	 	No
	 
	 	1200 E. Barbours Cut Blvd.	 	 
	 
	 	Morgan’s Point, Texas 77571	 	 
	 
	 	USA	 	 
	 
	 	 	 	 
	 
	 	CMI Freight-Trans. Inc. 	 	No
	 
	 	4401 D Street NW, Suite C	 	 
	 
	 	Auburn, Washington 98001	 	 
	 
	 	USA	 	 
	 
	 	 	 	 
	 
	 	Rexam Plant	 	No
	 
	 	 1220 North 2nd Avenue	 	 
	 
	 	Kent, Washington 98032	 	 
	 
	 	USA	 	 
	 
	 	 	 	 
	Novelis UK Ltd.
	 	Alloa Community Enterprises Ltd
Unit 1 Block 1	 	No
	 
	 	Ward Street
Alloa
Scotland
FK10 1ET
United Kingdom	 	 

 

 

	 	 	 	 	 
	Loan Party	 	Address	 	Subject to Bailee/Landlord Letter
	 
	 	Teeside Transfer & Aggregation Centre	 	No
	 
	 	(Abitibi Consolidated Recyling Europe Transfer	 	 
	 
	 	& Aggregation Centre)	 	 
	 
	 	Puddlers Road	 	 
	 
	 	South Tees Industrial Park	 	 
	 
	 	Middlesborough	 	 
	 
	 	Cleveland	 	 
	 
	 	TS6 6TX	 	 
	 
	 	United Kingdom	 	 
	 
	 	 	 	 
	 
	 	Howcan	 	No
	 
	 	245 Oldham Road	 	 
	 
	 	Manchester	 	 
	 
	 	M40 7PT	 	 
	 
	 	United Kingdom	 	 
	 
	 	 	 	 
	 
	 	Alutrade	 	No
	 
	 	Langley Forge House	 	 
	 
	 	Tat Bank Road	 	 
	 
	 	Oldbury	 	 
	 
	 	West Midlands	 	 
	 
	 	B69 4NN	 	 
	 
	 	United Kingdom	 	 
	 
	 	 	 	 
	 
	 	Richard Freeths Waste Merchant	 	No
	 
	 	Kingshill	 	 
	 
	 	Cricklade	 	 
	 
	 	Swindon	 	 
	 
	 	SN6 6JR	 	 
	 
	 	United Kingdom	 	 
	 
	 	 	 	 
	 
	 	Dunstable Waste Group	 	No
	 
	 	Blackburn Road	 	 
	 
	 	Houghton Regis	 	 
	 
	 	Nr Dunstable	 	 
	 
	 	LU5 5BQ	 	 
	 
	 	United Kingdom	 	 
	 
	 	 	 	 
	 
	 	Universal Recycling Co	 	No
	 
	 	London Wiper Co Ltd T/A	 	 
	 
	 	Wharf Road	 	 
	 
	 	Kilnhurst	 	 
	 
	 	Mexborough	 	 
	 
	 	South Yorkshire	 	 
	 
	 	S64 5SY
United Kingdom	 	 

 

 

	 	 	 	 	 
	Loan Party	 	Address	 	Subject to Bailee/Landlord Letter
	 
	 	FDB Distribution Ltd	 	No
	 
	 	Building 38	 	 
	 
	 	2nd Avenue	 	 
	 
	 	Pensnett Industrial Estate	 	 
	 
	 	Kingswinford	 	 
	 
	 	West Midlands	 	 
	 
	 	DY6 7UN	 	 
	 
	 	United Kingdom	 	 
	 
	 	 	 	 
	 
	 	Inventory with consignment customers (Bridgnorth):	 	 
	 
	 	Coppice Alupack Ltd	 	No
	 
	 	Isfryn Industrial Estate	 	 
	 
	 	Blackmill	 	 
	 
	 	Bridgend	 	 
	 
	 	CF35 6EB	 	 
	 
	 	United Kingdom	 	 
	 
	 	 	 	 
	 
	 	BSK Materials Ltd	 	No
	 
	 	Commissioners Road	 	 
	 
	 	Strood	 	 
	 
	 	Kent	 	 
	 
	 	ME2 4ED	 	 
	 
	 	United Kingdom	 	 
	 
	 	 	 	 
	 
	 	Vaassen Flexible Packaging BV	 	No
	 
	 	PO Box 2	 	 
	 
	 	Vaassen	 	 
	 
	 	8170 AA	 	 
	 
	 	Netherlands	 	 
	 
	 	 	 	 
	 
	 	Alcan Packaging Tenningen Tschuelin Rothal	 	No
	 
	 	GMBH	 	 
	 
	 	Friedrich Myer Strasse 23	 	 
	 
	 	79331	 	 
	 
	 	Germany	 	 
	 
	 	 	 	 
	 
	 	Rogers Induflex	 	No
	 
	 	Ottergemse Steenweg 801	 	 
	 
	 	Gent	 	 
	 
	 	9000	 	 
	 
	 	Belgium	 	 
	 
	 	 	 	 
	 
	 	CC Pack	 	No
	 
	 	Box 2	 	 
	 
	 	Tibro	 	 
	 
	 	54321
Sweden	 	 

 

 

	 	 	 	 	 
	Loan Party	 	Address	 	Subject to Bailee/Landlord Letter
	Novelis Deutschland GmbH
	 	Third Party in Possession regarding Berlin:	 	N/A for Germany
	 
	 	 	 	 
		 	Schenker Deutschland AG	 	 
	 
	 	Logistikzenttum Nord	 	 
	 
	 	Montanstr. 8-16	 	 
	 
	 	D-13407 Berlin	 	 
	 
	 	Germany	 	 
	 
	 	 	 	 
	 
	 	Pohland-Speditionsges. mbH	 	 
	 
	 	Industriestr. 6	 	 
	 
	 	D-95182 Dohlau	 	 
	 
	 	Germany	 	 
	 
	 	 	 	 
	 
	 	Third Party in Possession regarding	 	 
	 
	 	GottingenNorf	 	 
	 
	 	(inventory under Norf is property of Novelis Deutschland GmbH):	 	 
	 
	 	 	 	 
	 
	 	Inventory at forwarding agencies:	 	 
	 
	 	 	 	 
	 
	 	Friedrich Zufall GmbH & Co. KG,	 	 
	 
	 	Internationale Spedition,	 	 
	 
	 	Robert-Bosch-Breite 9,	 	 
	 
	 	D- 37079 Gottingen	 	 
	 
	 	Germany	 	 
	 
	 	 	 	 
	 
	 	Schenker Deutschland AG,	 	 
	 
	 	Nordhoffstr. 4,	 	 
	 
	 	D- 37077 Gottingen	 	 
	 
	 	Germany	 	 
	 
	 	 	 	 
	 
	 	Erich Schmelz GmbH & Co. KG,	 	 
	 
	 	Internationale Spedition,	 	 
	 
	 	MiramstraDe 75,	 	 
	 
	 	D-34123 Kassel	 	 
	 
	 	Germany	 	 
	 
	 	 	 	 
	 
	 	Benneckenstein Transporte GmbH Sped.,	 	 
	 
	 	Mittelweg 2 1,	 	 
	 
	 	D-37154 Northeim	 	 
	 
	 	Germany	 	 
	 
	 	 	 	 
	 
	 	Warehouses for raw material:	 	 
	 
	 	 	 	 
	 
	 	Trimet Aluminium AG,	 	 
	 
	 	Aluminiumallee 1,	 	 
	 
	 	D-45356 Essen	 	 
	 
	 	Germany	 	 

 

 

	 	 	 	 	 
	Loan Party	 	Address	 	Subject to Bailee/Landlord Letter
	 
	 	UCT UmschlagContainer Terminal GmbH,	 	 
	 
	 	Sachtlebenstrasse 34,
4 1541 Dormagen	 	 
	 
	 	Germany	 	 
	 
	 	 	 	 
	 
	 	Agfa-Gevaert AG,	 	 
	 
	 	 Grafische Systeme,
WerkKalle-Albert,	 	 
	 
	 	Postfach 3540,	 	 
	 
	 	65025 Wiesbaden
Germany	 	 
	 
	 	 	 	 
	 
	 	Agfa-Gevaert UK Manufacturing,	 	 
	 
	 	 Coal Road,	 	 
	 
	 	Leeds LS14 2AL West Yorkshire,	 	 
	 
	 	United Kingdom	 	 
	 
	 	 	 	 
	 
	 	Kodak Polychrome Graphics GmbH,	 	 
	 
	 	An der Bahn 80,	 	 
	 
	 	37520 Osterode
Germany	 	 
	 
	 	 	 	 
	 
	 	Ball Packaging Europe GmbH,	 	 
	 
	 	Zweigniederlassung Braunschweig,	 	 
	 
	 	Hamburger Str. 36-41,	 	 
	 
	 	38114 Braunschweig	 	 
	 
	 	Germany	 	 
	 
	 	 	 	 
	 
	 	Karl Achenbach GmbH & Co. KG,	 	 
	 
	 	Zinzinger Str. 1 1,	 	 
	 
	 	66117 Saarbriicken
Germany	 	 
	 
	 	 	 	 
	 
	 	NE Deckensysteme GmbH,	 	 
	 
	 	Industriestr. 16,	 	 
	 
	 	45739 Oer-Erkenschwick
Germany	 	 
	 
	 	 	 	 
	 
	 	MKG Metall- und Kunststoff-Verarbeitungs-Ges. mbh,	 	 
	 
	 	Daimlerstr. 13-1 5,	 	 
	 
	 	49504 Lotte
Germany	 	 
	 
	 	 	 	 
	 
	 	Warehouses for finished goods:	 	 
	 
	 	R.M.S. Europe Ltd.,	 	 
	 
	 	Boothfeny Terminal,	 	 
	 
	 	Bridge Street,
Goole,
East Yorkshire, DN14 5SS
United Kingdom
	 	 

 

 

	 	 	 	 	 
	Loan Party	 	Address	 	Subject to Bailee/Landlord Letter
	 
	 	Third Party in Possession regarding Ludenscheid:	 	 
	 
	 
	 	Schenker Deutschland GmbH	 	 
	 
	 	Logistikzentrum Nord	 	 
	 
	 	Montanstr. 8-16	 	 
	 
	 	D-13407 Berlin	 	 
	 
	 	Germany	 	 
	 
	 	 	 	 
	 
	 	Pirelli Cables Limited	 	 
	 
	 	Industrial Cables Division	 	 
	 
	 	Plant 11	 	 
	 
	 	Chickenhall Lane	 	 
	 
	 	Eastleigh	 	 
	 
	 	Southhampton - SO5 5XA	 	 
	 
	 	United Kingdom	 	 
	 
	 	 	 	 
	 
	 	Pirelli Telekom Cables &
Systems UK Ltd.	 	 
	 
	 	Store 39	 	 
	 
	 	Chickenhall Lane	 	 
	 
	 	Eastleigh	 	 
	 
	 	Hampshire - SO50 6YU	 	 
	 
	 	United Kingdom	 	 
	 
	 	 	 	 
	 
	 	Reuther Verpackung	 	 
	 
	 	Elisabethstr. 6	 	 
	 
	 	D-56564 Neuwied	 	 
	 
	 	Germany	 	 
	 
	 	 	 	 
	 
	 	Draka Comteq Finland Oy	 	 
	 
	 	Local Network Cables LNC	 	 
	 
	 	Johdintie 5	 	 
	 
	 	FIN-90630 Oulu	 	 
	 
	 	Finland	 	 
	 
	 	 	 	 
	 
	 	SIG Combibloc GmbH	 	 
	 
	 	Rurstr. 58	 	 
	 
	 	D-52441 Linnich	 	 
	 
	 	Germany	 	 
	 
	 	Spedition Fahmer GmbH	 	 
	 
	 	Plettenberger Str. 12	 	 
	 
	 	D-58791 Werdohl	 	 
	 
	 	Germany	 	 
	 
	 	 	 	 
	 
	 	Third Party in Possession regarding Nachterstedt	 	 

 

 

	 	 	 	 	 
	Loan Party	 	Address	 	Subject to Bailee/Landlord Letter
	 
	 	Inventory with consignment customers:	 	 
	 
	 	 	 	 
	 
	 	M. Preymesser GmbH & Co. KG	 	 
	 
	 	Anton-Tucher-Str 1	 	 
	 
	 	D-28309 Bremen
 Germany	 	 
	 
	 	 	 	 
	 
	 	Innomotive Systems Europe GmbH	 	 
	 
	 	Othestr. 19
D-51702 Bergneustadt	 	 
	 
	 	Germany	 	 
	 
	 	 	 	 
	 
	 	Jaguar Cars Ltd.
 Central Accounts Payable	 	 
	 
	 	R. 4013 10
Trafford House, Station Way	 	 
	 
	 	Basildon, SS16 5XX
 United Kingdom	 	 
	 
	 	 	 	 
	 
	 	M. Preymesser GmbH & Co. KG	 	 
	 
	 	 Hafenstr. 95
D-74078 Heilbronn
Germany	 	 
	 
	 	 	 	 
	 
	 	M. Preymesser GmbH & Co. KG	 	 
	 
	 	Industriestr. 3
D-84 180 Loiching
Germany	 	 
	 
	 	 	 	 
	 
	 	Ball Packaging Europe GmbH	 	 
	 
	 	Hamburger Str. 36 - 41	 	 
	 
	 	D-38 114 Braunschweig
Germany	 	 
	 
	 	 	 	 
	 
	 	M. Preymesser GmbH & Co. KG	 	 
	 
	 	Otto-Lilienthal-Str. 34	 	 
	 
	 	D-71034 Boblingen	 	 
	 
	 	Germany	 	 
	 
	 	 	 	 
	 
	 	GE Hungary RT	 	 
	 
	 	Vaci ut. 77
Budapest	 	 
	 
	 	Hungary	 	 
	 
	 	 	 	 
	 
	 	Stahl Zentrurn Glauchau GmbH & Co. KG	 	 
	 
	 	Peniger Str. 17
D-0837 Glauchau	 	 
	 
	 	Germany	 	 

 

 

	 	 	 	 	 	 	 
	Loan Party	 	Address	 	Subject to Bailee/Landlord Letter	 
	 
	 	W. Hartrnann & CO.	 	 	 	 
	 
	 	Rodingsmarkt 39	 	 	 	 
	 
	 	D-20459 Hamburg	 	 	 	 
	 
	 	Germany	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	Lapple Blechverarbeitung GmbH & Co. KG	 	 	 	 
	 
	 	Bayern	 	 	 	 
	 
	 	Maxhiitter Str. 16	 	 	 	 
	 
	 	D-93 158 Teublitz	 	 	 	 
	 
	 	Germany	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	Alcan Alluminio S.P.A.	 	 	 	 
	 
	 	Via Bruno Buozzi 12	 	 	 	 
	 
	 	Fizzonasco di Pieve	 	 	 	 
	 
	 	Italy	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	Panopa Logistik GmbH	 	 	 	 
	 
	 	Max-von-Laue Weg 2	 	 	 	 
	 
	 	D-38448 Wolfsburg	 	 	 	 
	 
	 	Germany	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	ThyssenKmpp Schulte GmbH	 	 	 	 
	 
	 	Robert-Bosch-Str. 1	 	 	 	 
	 
	 	D-38112 Braunschweig	 	 	 	 
	 
	 	Germany	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	ThyssenKrupp Metallcenter GmbH	 	 	 	 
	 
	 	Am Storrenacker 4	 	 	 	 
	 
	 	D-76139 Karlsruhe	 	 	 	 
	 
	 	Germany	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	SMK Stahlmagazin GmbH	 	 	 	 
	 
	 	Von-Miller Str. 3 1	 	 	 	 
	 
	 	D-6766 I Kaiserslautern	 	 	 	 
	 
	 	Germany	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	Inventory with commission processor	 	 	 	 
	 
	 	(Lohnveredler)	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	LTI Metalltechnik GmbH	 	 	 	 
	 
	 	Im Fliirlein 16	 	 	 	 
	 
	 	D-742 14 Schontal-Berlichingen	 	 	 	 
	 
	 	Germany	 	 	 	 
	 
	 	Coils Anodizing N.V.	 	 	 	 
	 
	 	Industriezone 5	 	 	 	 
	 
	 	Landen	 	 	 	 
	 
	 	Belgium	 	 	 	 

 

 

	 	 	 	 	 
	Loan Party	 	Address	 	Subject to Bailee/Landlord Letter
	 
	 	Decomecc Co.	 	 
	 
	 	Bilzer Weg 8	 	 
	 
	 	3600 Genk	 	 
	 
	 	Belgium	 	 
	 
	 	 	 	 
	 
	 	Rede	 	 
	 
	 	Rue de la Libtration	 	 
	 
	 	60530 Le Mesnil en Thelle	 	 
	 
	 	France	 	 
	 
	 	 	 	 
	 
	 	Jaguar Cars Ltd.	 	 
	 
	 	Central Accounts Payable	 	 
	 
	 	R.40/3 10	 	 
	 
	 	Trafford House, Station Way	 	 
	 
	 	Basildon, SS16 5XX	 	 
	 
	 	United Kingdom	 	 
	 
	 	 	 	 
	 
	 	Inventory with customers who purchase on

approval (gutbefund)	 	 
	 
	 	 	 	 
	 
	 	Tirsan Anhangerproduktion u.
Handel Goch	 	 
	 
	 	GmbH	 	 
	 
	 	Siemensstr. 74	 	 
	 
	 	approval (Gutbefund)	 	 
	 
	 	D-47574 Goch	 	 
	 
	 	Germany	 	 
	 
	 	 	 	 
	 
	 	Alutech Ges.mbH	 	 
	 
	 	Untersbergstr. 1	 	 
	 
	 	Austria	 	 
	 
	 	 	 	 
	 
	 	Behr Motorradtechnik Reichenbach GmbH	 	 
	 
	 	Gewerbering 2	 	 
	 
	 	D-08468 Reichenbach	 	 
	 
	 	Germany	 	 
	 
	 	 	 	 
	 
	 	Becker Plastics GmbH	 	 
	 
	 	Am Bahnhof 3	 	 
	 
	 	D-45711 Dattein	 	 
	 
	 	Germany	 	 
	 
	 	 	 	 
	 
	 	Alfun AS.	 	 
	 
	 	Zahradni 1610/40	 	 
	 
	 	79201 Bruntal	 	 
	 
	 	Czech Republic	 	 
	 
	 	 	 	 
	 
	 	Aries S.P.A.	 	 
	 
	 	Strada Torino 23	 	 
	 
	 	10092 Beinasco (To)	 	 
	 
	 	Italy

 

 

	 	 	 	 	 	 	 
	Loan Party	 	Address	 	Subject to Bailee/Landlord Letter
	 
	 	Lapple Blechverarbeitung
GmbH & Co. KG
	 
	 	Bayern
	 
	 	Maxhutter Str. 16
	 
	 	D-93 158 Teublitz
	 
	 	Germany
	 
	 	 
	 
	 	Jaguar Cars Ltd.
	 
	 	Central Accounts Payable
	 
	 	R.4013 10
	 
	 	Trafford House, Station Way
	 
	 	Basildon, SS16 5XX
	 
	 	United Kingdom
	 
	 	 
	 
	 	Alcan Singen GmbH
	 
	 	Ahsingen-Platz 1
	 
	 	D-78221 Singen
	 
	 	Germany
	 
	 	 
	 
	 	Third Party in Possession regarding Plettenberg
Ohle:
	 
	 	 
	 
	 	Inventory and consignment arrangements:
	 
	 	 
	 
	 	ContiTech TechnoChemie
	 
	 	D-61184 Karben
	 
	 	Germany
	 
	 	 
	 
	 	ContiTech TechnoChemie GmbH
	 
	 	D-3829 Salzgitter
	 
	 	Germany
	 
	 	 
	 
	 	Continental Industrias
	 
	 	E-28820 Coslada-Madrid
	 
	 	Spain
	 
	 	 
	 
	 	Sped. Muller (Dura)
	 
	 	D-54552 Mehren
	 
	 	Germany
	 
	 	 
	 
	 	Dura Shifter Systems
	 
	 	GB-Llangennech, SA14 8DZ
	 
	 	United Kingdom
	 
	 	 
	 
	 	Sped. Hermann Merkel (Eaton)
	 
	 	D-76456 Kuppenheim
	 
	 	Germany

 

 

	 	 	 	 	 
	Loan Party	 	Address	 	Subject to Bailee/Landlord Letter
	 
	 	Eaton Fluid Power	 	 
	 
	 	Brierley Hill	 	 
	 
	 	West Midlands DY5 2LB	 	 
	 
	 	England	 	 
	 
	 	United Kingdom	 	 
	 
	 	 	 	 
	 
	 	Inventory at forwarding agency:	 	 
	 
	 	 	 	 
	 
	 	Excel GmbH	 	 
	 
	 	D-Meinerzhagen	 	 
	 
	 	 	 	 
	 
	 	Inventory under consignment arrangements:	 	 
	 
	 	 	 	 
	 
	 	Baars	 	 
	 
	 	Kattenberg 52a	 	 
	 
	 	D-18273 Gustrow	 	 
	 
	 	Germany	 	 
	 
	 	 	 	 
	 
	 	Dewitz	 	 
	 
	 	Nicolaistrasse 32	 	 
	 
	 	D-12247 Berlin	 	 
	 
	 	Germany	 	 
	 
	 	 	 	 
	 
	 	Moller	 	 
	 
	 	Alter Hellweg 62	 	 
	 
	 	D-44064 Dortmund	 	 
	 
	 	Germany	 	 
	 
	 	 	 	 
	 
	 	Pohl	 	 
	 
	 	Erich — Zeigner — Allee 69/73	 	 
	 
	 	D-04229 Leipzig	 	 
	 
	 	Germany	 	 
	 
	 	 	 	 
	 
	 	Zable	 	 
	 
	 	Gateforth Lane	 	 
	 
	 	GB-YO8 9HP Hambleton Selby	 	 
	 
	 	United Kingdom	 	 
	 
	 	 	 	 
	 
	 	Zaiser	 	 
	 
	 	Neuwiesen 9	 	 
	 
	 	D-73312 Geislingen	 	 
	 
	 	Germany	 	 
	 
	 	 	 	 
	 
	 	A.F.V. Emballages	 	 
	 
	 	28 Grande Rue	 	 
	 
	 	F-78790 Hargeville	 	 
	 
	 	France	 	 

 

 

	 	 	 	 	 
	Loan Party	 	Address	 	Subject to Bailee/Landlord Letter
	 
	 	Inventory at external storage area:	 	 
	 
	 	 	 	 
	 
	 	ARG	 	 
	 
	 	Am Stadthafen 5 1 — 65	 	 
	 
	 	D-45881 Gelsenkirchen	 	 
	 
	 	Germany	 	 
	 
	 	 	 	 
	 
	 	Boon Weets	 	 
	 
	 	Industriezone Webbekom 2/16	 	 
	 
	 	B-3290 Diest	 	 
	 
	 	Belgium	 	 
	 
	 	 	 	 
	 
	 	Compackt	 	 
	 
	 	Kalver Strasse 20	 	 
	 
	 	D-585 15 Liidenscheid	 	 
	 
	 	Germany	 	 
	 
	 	 	 	 
	 
	 	Fahmer	 	 
	 
	 	Plettenberger Str. 12	 	 
	 
	 	D-58791 Werdohl	 	 
	 
	 	Germany	 	 
	 
	 	 	 	 
	 
	 	Trimet	 	 
	 
	 	Am Stadthafen 5 1 — 65	 	 
	 
	 	D-45881 Gelsenkirchen	 	 
	 
	 	Germany	 	 
	 
	 	 	 	 
	 
	 	Schmitt	 	 
	 
	 	Ebbetalstrasse 63a	 	 
	 
	 	D-58840 Plettenberg	 	 
	 
	 	Germany	 	 
	 
	 	 	 	 
	 
	 	Sperrlager OV-APO	 	 
	 
	 	Bahnhofstr. 27	 	 
	 
	 	CH-6890 Lustenau	 	 
	 
	 	Switzerland	 	 
	 
	 	 	 	 
	 
	 	Schneider Maschinenbau	 	 
	 
	 	Maumker Strasse 13	 	 
	 
	 	D-57368 Lennestadt	 	 
	 
	 	Germany	 	 
	 
	 	 	 	 
	 
	 	Cordes & Simon	 	 
	 
	 	Spannstiftstr. 1 — 39	 	 
	 
	 	D-58 119 Hagen	 	 
	 
	 	Germany	 	 
	 
	 	 	 	 
	Novelis do Brasil Ltda.
	 	Inventory stored with customers under

consignment arrangements:	 	 

 

 

	 	 	 	 	 
	Loan Party	 	Address	 	Subject to Bailee/Landlord Letter
	 
	 	Cabreúva	 	N/A
	 
	 	Crown Embalagens S/A	 	 
	 
	 	Rod. Dom Gabriel P. B.
Couto, Km 80.24	 	 
	 
	 	Cabreúva, SP	 	 
	 
	 	CEP 13315-000	 	 
	 
	 	Brazil	 	 

 

 

Schedule 4.01(g)

Local and Foreign Counsel

	§	 	Lawson Lundell LLP, as special British Columbia and Alberta counsel to the Loan Parties
	 
	§	 	Desjardins Ducharme L.L.P., as special Quebec counsel to the Loan Parties
	 
	§	 	Macfarlanes, as UK counsel to the Loan Parties
	 
	§	 	Norr StiefenHofer Lutz, as German counsel to the Loan Parties
	 
	§	 	Ernst & Young Societe d’Avocats, as French counsel to the Loan Parties
	 
	§	 	Levy & Salomao Advogados, as Brazilian counsel to the Loan Parties
	 
	§	 	A&L Goodbody, as Irish counsel to the Loan Parties
	 
	§	 	Homburger, as Swiss counsel to the Loan Parties
	 
	§	 	Studio Legale Tributario, as Italian counsel to the Loan Parties
	 
	§	 	Kim & Chang, as Korean counsel to the Loan Parties
	 
	§	 	Van Olmen — Wynant, as Belgian counsel to the Loan Parties
	 
	§	 	Elvinger Dessoy Dennewald, as Luxembourg counsel to the Loan Parties
	 
	§	 	Jones Day, as Georgia, Ohio and Texas counsel to the Loan Parties
	 
	§	 	Jackson Kelly PLLC, as West Virginia counsel to Loan Parties
	 
	§	 	Ice Miller, as Indiana counsel to Loan Parties
	 
	§	 	Taft Stettinius & Hollister LLP, as Kentucky counsel to Loan Parties

 

 

Schedule 4.01(l)

Sources and Uses

Sources and Uses

in millions

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Sources	 	Uses
	 	 	Amount	 	%	 	 	 	 	 	Amount	 	%
	New Term Loan
	 	$	960.0	 	 	 	75	%	 	Refinance Term Loan	 	$	822.0	 	 	 	64	%
	New ABL Revolver*
	 	$	324.0	 	 	 	25	%	 	Refinance Revolver	 	$	443.0	 	 	 	35	%
	 
	 	 	 	 	 	 	 	 	 	Fees and expenses	 	$	19.0	 	 	 	1	%
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	Total
	 	$	1,284.0	 	 	 	100	%	 	 	 	 	 	$	1,284.0	 	 	 	100	%
	 	 	 	 	 	 	 	 	 

 

			
	*	 	After giving effect to the borrowing and repayment to occur on the Closing Date pursuant to the
Revolving Credit Agreement in an aggregate amount of approximately $226 million.

 

 

Schedule 4.01(o)(iii)

Title Insurance Amounts

	 	 	 	 	 
	Facility	 	Amount
	Greensboro, Georgia
	 	$	8,110,000	 
	Terre Haute, Indiana
	 	$	24,450,000	 
	Berea, Kentucky
	 	$	16,500,000	 
	Louisville, Kentucky
	 	$	11,000,000	 
	Scriba, New York
	 	$	28,920,000	 
	Warren, Ohio
	 	$	13,670,000	 
	Fairmont, West Virginia
	 	$	22,300,000	 
	Kingston, Ontario
	 	C	$50,710,000	 
	Saguenay, Quebec
	 	C	$20,980,000	 

 

 

Schedule 5.11(b)

Certain Subsidiaries

Novelis Italia SpA

Novelis Foil France SAS

Novelis PAE SAS

 

 

Schedule 5.16 

Post-Closing Covenants

	1.	 	Within 30 days (or such longer period as may be agreed to by the Administrative Agent in its
sole discretion) Novelis Europe Holdings Limited shall deliver to the Administrative Agent a
Pledge Agreement Over Shares in favor of the Secured Parties whereby Novelis Europe
Holding Limited pledges 100% of the share capital of Novelis Italia S.p.A.
	 
	2.	 	Within 30 days (or such longer period as may be agreed to by the Administrative Agent in its
sole discretion) Borrowers shall deliver to the Administrative Agent share certificates
representing, individually, (i) 84,393,463 ordinary shares issued by Novelis Europe Holdings
Limited to Novelis Inc.; (ii) 1 ordinary share issued by Novelis Europe Holdings Limited to
Novelis Inc.; and (iii) 144,928,900 preferred shares issued by Novelis Europe Holdings
Limited to Novelis Inc. If Borrowers are not able to locate such share certificates, Borrower
shall cause to be executed lost stock affidavits and shall cause Novelis Europe Holdings
Limited to reissue such certificates, with such certificates to be delivered to the
Administrative Agent within the time period proscribed in this paragraph 2.
	 
	3.	 	Within 3 Business Days after the date hereof, Borrowers shall deliver to the Administrative
Agent an executed final copy, with an original to follow via next-business-day-delivery, of an
opinion letter from Taft, Stettinius & Hollister LLP concerning the enforceability of the
mortgages and fixture filings with respect to the real property located in each of Madison
County and Jefferson County, Kentucky.
	 
	4.	 	Within 10 Business Days (or such longer period as may be agreed to by the Administrative
Agent in its sole discretion) the Borrowers shall deliver to the Administrative Agent
replacements for the Pledged Intercompany Notes listed on Schedule 11 on the Perfection
Certificate other than those entered into on the Closing Date in the form of Intercompany
Note found in Exhibit P together with endorsements.
	 
	5.	 	Within forty-five (45) days of closing (or such longer period as may be agreed to by the
Administrative Agent in its sole discretion) each Guarantor will, subject to the proviso below,
execute, deliver, and submit to the relevant government office(s) for filing or registration,
and
pay the requisite fee for such filing or registration, all documents reasonably requested by the
Collateral Agent and necessary to validate or perfect the Lien of the Collateral Agent, for the
ratable benefit of the Secured Parties, in any material Intellectual Property that such
Guarantor owns in Germany, Switzerland, Canada, the UK and the US. In particular:

          (i) with respect to IP established under U.S. law, other than obsolete or abandoned IP,
other than obsolete or abandoned IP, Guarantor will (a) execute, deliver, and submit an
agreement substantially in the form of the U.S. Intellectual Property Security Agreement for
recording in the U.S. Patent and Trademark Office and U.S. Copyright Office, (b) execute and
deliver and file Form UCC-Is in the applicable Secretary of State’s Office and (c) record in the
U.S. Patent and Trademark Office and U.S. Copyright Office, as

 

 

applicable, documentation necessary to bring title to such IP current into the name of the
relevant Guarantor,

          (ii) with respect to IP established under German law, other than obsolete or abandoned
IP, Guarantor will execute and deliver a Security Transfer and Assignment Agreement Relating
to Intellectual Property Rights (which may be recorded in the relevant German IP registry
office upon the occurrence of an Event of Default)

          (iii) with respect to IP established under UK law, other than obsolete or abandoned IP,
Guarantor will (a) execute and deliver Form 24s in a form reasonably required by the Collateral
Agent for recording in the relevant UK IP registry, (b) execute, deliver and file appropriate
documents for recording with the UK Companies House and (c) record documentation in the UK IP
registry necessary to bring title to such IP current into the name of the relevant Guarantor,

          (iv) with respect to IP established under Canadian law, Guarantor will file any additional
or cause to be filed registrations under the PPSA required by the Collateral Agent in respect
of the appropriate Security Documents,

          (v) With respect to IP established under Swiss law, Guarantor will execute and deliver, or
submit for registration at its sole cost and expense, such documents and instruments for
recording the Collateral Agent’s Lien, for the ratable benefit of the Secured Parties, as are
necessary and appropriate;

          provided that, in each of the foregoing clauses (iv) and (v), the cost of recording such
documents and instruments, or of bringing the title to such IP current, is not unreasonable
when compared to the value of the IP, and its materiality to the business of the Guarantor or
other Guarantors.

	6.	 	Within 1 Business Day of the Closing Date (or such longer period as may be agreed to by the
Administrative Agent in its sole discretion) a Share Pledge of 100% of the capital stock of
Novelis Deutschland GmbH for the Term Lenders and one such Share Pledge for the ABL
Lenders accompanied by an opinion of A&L Goodbody covering such Share Pledges.
	 
	7.	 	Transfer of Title to Movable Assets to be provided within 5 Business Days of the Closing
Date (or such longer period as may be agreed to by the Administrative Agent in its sole
discretion).
	 
	8.	 	Negative pledge over real estate in Germany with undertaking not to transfer the real estate
within 5 Business Days of the Closing Date (or such longer period as may be agreed to by the
Administrative Agent in its sole discretion, including, at the election of the Administrative
Agent, entry into the land register to respective encumbrances securing the negative pledge
and no-transfer (within 2 months from the election)).
	 
	9.	 	Evidence that the land charges have been effectively transferred to Novelis Deutschland
GmbH within 2 months, or such longer period acceptable to the Administrative Agent.

 

 

	10.	 	Copy of Trust Agreement between Novelis AG and Novelis Deutschland GmbH, within one
Business Day.
	 
	11.	 	Commerzbank Receipt of Trust Agreement and issuance of Lien Waiver (or subordination)
Agreement Over All Pledged Bank Accounts within 5 Business Days of the Closing Date (or
such longer period as may be agreed to by the Administrative Agent in its sole discretion).
	 
	12.	 	Global Assignment of Receivables and Insurance Claims (Globalzession) by Novelis
Deutschland GmbH within 10 Business Days of the Closing Date, or such longer period as
acceptable to the Administrative Agent.
	 
	13.	 	Security transfer agreements over all IP rights of Novelis Deutschland GmbH.
	 
	14.	 	Ten (10) notarized originals and 190 simple originals of executed assignment notices by
Novelis AG within 10 Business Days of the Closing Date (or such longer period as may be agreed to by the Administrative Agent in its sole discretion).

 

 

Schedule 6.01(b)

Existing Indebtedness

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	Bank Name/	 	 	 	 	 	US$
	Company	 	Description	 	Noteholder	 	Issue Date	 	Due date	 	Amount
	Novelis Korea Ltd.
	 	Loan	 	Korea Exchange Bank	 	December 28, 2004	 	December 28, 2007	 	$	70,000,000	 
	Novelis Korea Ltd.
	 	Loan	 	Shinhan Bank	 	November 17, 2004	 	November 17, 2007	 	$	42,539,615	 
	Novelis Korea Ltd.
	 	Loan	 	Shinhan Bank	 	December 24, 2004	 	December 24, 2007	 	$	26,587,259	 
	Novelis Korea Ltd.
	 	Loan	 	Korea Exchange Bank	 	November 9, 2000	 	September 15, 2008	 	$	246,942	 
	Novelis Korea Ltd.
	 	Loan	 	Korea Exchange Bank	 	August 14, 2002	 	September 15, 2010	 	$	402,903	 
	Novelis Korea Ltd.
	 	Loan	 	Shinhan Bank	 	December 18, 2003	 	June 15, 2011	 	$	318,196	 
	Novelis AG
	 	Capital lease	 	Leasing Company	 	August 17, 2005	 	August 17, 2011	 	$	3,315,855	 
	Novelis AG
	 	Capital lease	 	Alcan	 	December 30, 2004	 	Q4, 2019	 	$	46,321,440	 
	Novelis Foil France SAS
	 	Loan	 	C.I.L	 	December 31, 1992	 	December 31, 2012	 	$	305,395	 
	Novelis Foil France SAS
	 	Loan	 	C.I.L	 	December 31, 1991	 	December 31, 2011	 	$	305,190	 
	Novelis Luxembourg
	 	Loan	 	SNCI	 	November 27, 2003	 	March 31, 2009	 	$	1,226,912	 
	Novelis Italia SpA
	 	Loan	 	Ministero del Tesoro	 	April 14, 2000	 	April 14, 2009	 	$	306,935	 
	Novelis AG
	 	Loan	 	Commerzbank, Berlin	 	N/A	 	N/A	 	$	45,842	 
	Novelis Foil France SAS
	 	Loan	 	Societe Generale	 	N/A	 	N/A	 	$	15,208	 
	Novelis Italia SpA
	 	Loan	 	Credito Artigiano SPA	 	N/A	 	N/A	 	$	1,830,815	 
	Novelis Italia SpA
	 	Loan	 	Banca Intesa SPA	 	N/A	 	N/A	 	$	2,007,564	 
	Novelis Italia SpA
	 	Loan	 	San Paolo Imi SPA	 	N/A	 	N/A	 	$	34,384	 
	Novelis Italia SpA
	 	Loan	 	Banca Popolare di Bergamo SPA	 	N/A	 	N/A	 	$	129,176	 
	Novelis Italia SpA
	 	Loan	 	Unicredit Banca SPA	 	N/A	 	N/A	 	$	172,873	 

With respect to Indebtedness under the Senior Note Documents, the obligors thereunder include (in
addition to Loan Parties) Eurofoil, Inc.

 

 

Schedule 6.02(c)

Existing Liens

The
exceptions from the title insurance coverage as set forth on the
attached Annex A.

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Registration/	 	 
	 	 	 	 	File No. and	 	Renewal Period	 	Collateral
	Debtor(s)	 	Secured Party(ies)	 	Date of Registration	 	(years)	 	Description
	NOVELIS
CORPORATION 

PO BOX 6977

CLEVELAND, OHIO 

44101-1977
	 	AIR LIQUIDE INDUSTRIAL

US LP

12800 WEST LITTLE YORK

ROAD

HOUSTON, TEXAS

77041
	 	05-0021329284

JULY 8, 2005

AMENDMENT

05-00265681

AUGUST 24, 2005
	 	5 YEARS
	 	VERTICAL VESSEL

9000 GALLON

SERIAL #L1348

VERTICAL VESSEL

13000 GALLON

SERIAL #S1154

AND S1155
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	(LOCATION: ALCAN
	 
	 	 	 	 	 	 	 	
ALUMINUM 448

COUNTY ROUTE

1A, OSWEGO, NY
13126)
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	VERTICAL VESSEL:
	 
	 	 	 	 	 	 	 	11000 GALLON

SERIAL #318

(LOCATION:
	 
	 	 	 	 	 	 	 	CHASE CITY, VA)
	 
	 	 	 	 	 	 	 	 
	NOVELIS CORPORATION 6060 PARKLAND BLVD. 
CLEVELAND, OHIO
44124
	 	MARUBENI AMERICA

CORPORATION

450 LEXINGTON AVENUE

NEW YORK, NY 10017
	 	06-0002744609

JANUARY 25, 2006
	 	5 YEARS
	 	PURCHASE MONEY
SECURITY
INTEREST IN ALL
PRIMARY
ALUMINUM TEE
BARS SHIPPED TO
DEBTOR AND ALL
PROCEEDS
ARISING FROM
THE SALE OF
PRIMARY
ALUMINUM TEE
BARS.
	 
	 	 	 	 	 	 	 	 
	NOVELIS
CORPORATION 

3399 PEACHTREE
ROAD 

ATLANTA, GA 

30326-1120
	 	IOS CAPITAL

1738 BASS ROAD

MACON, GA

31210-1043
	 	06-0004965040

FEBRUARY 13, 2006
	 	5 YEARS
	 	All equipment now or
hereafter leased in an
equipment leasing
transaction in
connection with that
certain Master
Agreement No.
1799592, and all
additions,
improvements,

 

 

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Registration/	 	 
	 	 	 	 	File No. and	 	Renewal Period	 	Collateral
	Debtor(s)	 	Secured Party(ies)	 	Date of Registration	 	(years)	 	Description
	 
	 	 	 	 	 	 	 	attachments,
accessories,
accessions, upgrades
and replacements
related thereto, and
any and all
substitutions or
exchanges, and any
and all products,
insurance and/or
other
proceeds (cash and
non-cash) there from.
	 
	 	 	 	 	 	 	 	 
	NOVELIS
CORPORATION

6060 PARKLAND
BLVD.
CLEVELAND, OHIO

44124
	 	THOMPSON TRACTOR
CO., INC.
PO BOX 10367

BIRMINGHAM, AL
35202
	 	06-0017582291

MAY 23, 2006
	 	5 YEARS
	 	ONE (1) GC55, S/N

AT88A00191,
INCLUDING
PROCEEDS.
	 
	 	 	 	 	 	 	 	 
	NOVELIS
CORPORATION 

448 COUNTY ROUTE
1A 

OSWEGO, NY 

131263962
	 	DE LAGE LANDEN
FINANCIAL SERVICES
INC.

1111 OLD EAGLE SCHOOL
ROAD 

WAYNE, PA 19087
	 	06-0032929798

OCTOBER 3, 2006
	 	5 YEARS
	 	INCLUDING ALL
COMPONENTS,
ADDITIONS,
UPGRADES,
ATTACHMENTS,
ACCESSIONS,
SUBSTITUTIONS,
REPLACEMENT
AND PROCEEDS OF
THE FOREGOING.
THIS FILING IS FOR
PRECAUTIONARY
PURPOSES IN
CONNECTION
WITH AN
EQUIPMENT
LEASING
TRANSACTION
AND IS NOT TO BE
CONSTRUED AS
INDICATING THAT
THE
TRANSACTION IS
OTHER THAN A
TRUE LEASE.
	 
	 	 	 	 	 	 	 	 
	NOVELIS
CORPORATION

6060 PARKLAND
BLVD. 

CLEVELAND, OHIO

44124
	 	GLENCORE LTD.

3 STAMFORD PLAZA 

301 TRESSOR BLVD. 

STAMFORD, CT 

06901-3244
	 	06-0033941541

OCTOBER 12, 2006
	 	5 YEARS
	 	All of Glencore Ltd.’s
A7E, A71, P1020
(ingot) AND/OR ITS
EQUIVALENT stored
from time to time at
storage facilities of
Novelis Corporation
located at four
Novelis
locations.

 

 

Schedule 6.04(b)

Existing Investments

Investments as set forth in Schedule 10 to the Perfection Certificates delivered by each of
the Loan Parties.

Note issued by Novelis UK Ltd in favor of Novelis Luxembourg Participations S.A., dated February 3,
2005, in the principal amount of $123,457,338, and maturing February 3, 2015 (the “NLP Note”).

Note
issued by Novelis AG in favor of Novelis Laminés France SAS, dated June 10, 2007 in the
principal amount of EUR 700,000 and maturing July 10, 2007 (the “NLF Note”).

Note issued by Novelis AG in favor of Novelis PAE SAS, dated June 29, 2007 in the principal amount
of EUR 4,800,000 and maturing July 9, 2007 (the “NP Note”).

It is expressly understood and agreed that the NLP Note, the NLF Note and the NP Note shall be
permitted under Section 6.04(b) of the Credit Agreement for a period of 30 days following the
Closing Date and the NLP Note, the NLF Note and the NP Note shall automatically (and without
further action by any party) be removed from this Schedule 6.04(b) on the 31st day following the
Closing Date.exv10w1

Exhibit 10.1

CONFORMED COPY

 

Porex Holding Corporation

$67,500,000

$10,000,000 8.75% Senior Secured Notes due October 19, 2010

$10,000,000 8.75% Senior Secured Notes due October 19, 2011

$10,000,000 8.75% Senior Secured Notes due October 19, 2012

$37,500,000 8.75% Senior Secured Notes due October 19, 2013

 

NOTE PURCHASE AGREEMENT

 

Dated October 19, 2009

 

 

 

Table of Contents

	 	 	 	 	 	 	 
	Section	 	Heading	Page	 
	Section 1.  Authorization of Notes  	 	 	1	 
	 
	 	 	 	 	 	 
	Section 2.  Sale and Purchase of Notes	 	 	1	 
	 
	 	 	 	 	 	 
	Section 3.  Closing	 	 	2	 
	 
	 	 	 	 	 	 
	Section 4.  Conditions to Closing	 	 	2	 
	 
	 	 	 	 	 	 
	Section 4.1.   Representations and Warranties
	 	 	2	 
	 
	 	 	 	 	 	 
	Section 4.2.  Performance; No Default
	 	 	2	 
	 
	 	 	 	 	 	 
	Section 4.4.  Opinions of Counsel
	 	 	3	 
	 
	 	 	 	 	 	 
	Section 4.5.  No Violation of Law, Etc.
	 	 	3	 
	 
	 	 	 	 	 	 
	Section 4.6.  Stock Purchase
	 	 	3	 
	 
	 	 	 	 	 	 
	Section 4.7.   [Reserved]
	 	 	3	 
	 
	 	 	 	 	 	 
	Section 4.8.  [Reserved]
	 	 	3	 
	 
	 	 	 	 	 	 
	Section 4.9.  Changes in Corporate Structure
	 	 	3	 
	 
	 	 	 	 	 	 
	Section 4.10.     [Reserved]
	 	 	3	 
	 
	 	 	 	 	 	 
	Section 4.11.     [Reserved]
	 	 	3	 
	 
	 	 	 	 	 	 
	Section 4.12.     Security Documents
	 	 	3	 
	 
	 	 	 	 	 	 
	Section 4.13.     Pledged Stock; Stock Powers; Pledged Notes
	 	 	3	 
	 
	 	 	 	 	 	 
	Section 4.14.     Filings, Registrations and Recordings
	 	 	3	 
	 
	 	 	 	 	 	 
	Section 4.15.     [Reserved]
	 	 	3	 
	 
	 	 	 	 	 	 
	Section 4.16.     Mortgages, etc.
	 	 	4	 
	 
	 	 	 	 	 	 
	Section 4.17.      Certain Post-Closing Matters
	 	 	4	 
	 
	 	 	 	 	 	 
	Section 5.  Representations and Warranties of the Obligors	 	 	4	 
	 
	 	 	 	 	 	 
	Section 5.1.   Existence; Compliance with Law
	 	 	4	 
	 
	 	 	 	 	 	 
	Section 5.2.   Corporate Power; Authorization; Enforceable Obligations
	 	 	4	 

 

 

	 	 	 	 	 	 	 
	Section	 	Heading	 	Page	 
	Section 5.3.  No Legal Bar
	 	 	5	 
	 
	 	 	 	 	 	 
	Section 5.4.  No Material Litigation
	 	 	5	 
	 
	 	 	 	 	 	 
	Section 5.5.  No Default
	 	 	5	 
	 
	 	 	 	 	 	 
	Section 5.6.  Ownership of Property; Liens
	 	 	5	 
	 
	 	 	 	 	 	 
	Section 5.7.  Investment Company Act
	 	 	5	 
	 
	 	 	 	 	 	 
	Section 5.8.  Subsidiaries

	 	 	5	 
	 
	 	 	 	 	 	 
	Section 5.9.  Accuracy of Information, Etc.
	 	 	5	 
	 
	 	 	 	 	 	 
	Section 5.10. Security Documents
	 	 	6	 
	 
	 	 	 	 	 	 
	Section 5.11. Stock Purchase
	 	 	6	 
	 
	 	 	 	 	 	 
	Section 5.12. Operations of the Company
	 	 	6	 
	 
	 	 	 	 	 	 
	Section 5.13. Private Offering by the Obligors
	 	 	6	 
	 
	 	 	 	 	 	 
	Section 5.14. Existing Indebtedness
	 	 	7	 
	 
	 	 	 	 	 	 
	Section 5.15. Taxes
	 	 	7	 
	 
	 	 	 	 	 	 
	Section 6.  Representations of the Purchaser	 	 	7	 
	 
	 	 	 	 	 	 
	Section 6.1.  Purchase for Investment
	 	 	7	 
	 
	 	 	 	 	 	 
	Section 7.  Tax Indemnification	 	 	7	 
	 
	 	 	 	 	 	 
	Section 8.  Payment of Prepayment of the Notes	 	 	9	 
	 
	 	 	 	 	 	 
	Section 8.1.  Required Repayments and Prepayments
	 	 	9	 
	 
	 	 	 	 	 	 
	Section 8.2.  Optional Prepayments
	 	 	9	 
	 
	 	 	 	 	 	 
	Section 8.3.  Allocation of Partial Repayments and Prepayments
	 	 	9	 
	 
	 	 	 	 	 	 
	Section 8.4.  Maturity; Surrender, Etc.
	 	 	10	 
	 
	 	 	 	 	 	 
	Section 8.5.  Purchase of Notes
	 	 	10	 
	 
	 	 	 	 	 	 
	Section 9.  Affirmative Covenants	 	 	10	 
	 
	 	 	 	 	 	 
	Section 9.1.  Financial Statements
	 	 	10	 
	 
	 	 	 	 	 	 
	Section 9.2.  Certificates; Other Information
	 	 	11	 
	 
	 	 	 	 	 	 

- ii -

 

	 	 	 	 	 	 	 
	Section	 	Heading	 	Page	 
	Section 9.3.  Payment of Obligations
	 	 	11	 
	 
	 	 	 	 	 	 
	Section 9.4.  Conduct of Business and Maintenance of Existence,
etc; Compliance
	 	 	11	 
	 
	 	 	 	 	 	 
	Section 9.5.  Maintenance of Property; Insurance
	 	 	12	 
	 
	 	 	 	 	 	 
	Section 9.6.  Inspection of Property; Books and Records
	 	 	12	 
	 
	 	 	 	 	 	 
	Section 9.7.  Notices
	 	 	12	 
	 
	 	 	 	 	 	 
	Section 9.8.  Additional Collateral
	 	 	13	 
	 
	 	 	 	 	 	 
	Section 9.9.  Further Assurances
	 	 	15	 
	 
	 	 	 	 	 	 
	Section 10.  Negative Covenants	 	 	15	 
	 
	 	 	 	 	 	 
	Section 10.1. Amendments of Certain Documents
	 	 	15	 
	 
	 	 	 	 	 	 
	Section 10.2. Indebtedness
	 	 	16	 
	 
	 	 	 	 	 	 
	Section 10.3. Liens
	 	 	17	 
	 
	 	 	 	 	 	 
	Section 10.4. Fundamental Changes
	 	 	19	 
	 
	 	 	 	 	 	 
	Section 10.5. Dispositions of Property
	 	 	19	 
	 
	 	 	 	 	 	 
	Section 10.6. Restricted Payments
	 	 	20	 
	 
	 	 	 	 	 	 
	Section 10.7. Investments
	 	 	21	 
	 
	 	 	 	 	 	 
	Section 10.8. Optional Payments
	 	 	23	 
	 
	 	 	 	 	 	 
	Section 10.9. Transactions with Affiliates
	 	 	23	 
	 
	 	 	 	 	 	 
	Section 10.10. Sales and Leasebacks
	 	 	23	 
	 
	 	 	 	 	 	 
	Section 10.11. Negative Pledge Clauses
	 	 	23	 
	 
	 	 	 	 	 	 
	Section 10.12. Clauses Restricting Subsidiary Distributions
	 	 	24	 
	 
	 	 	 	 	 	 
	Section 10.13. Limitation on Hedge Agreements
	 	 	25	 
	 
	 	 	 	 	 	 
	Section 10.14. Limitation on Cash-Pay Preferred Stock
	 	 	25	 
	 
	 	 	 	 	 	 
	Section 10.15. Limitation on Activities of the Company
	 	 	25	 
	 
	 	 	 	 	 	 
	Section 10.14. Lines of Business
	 	 	25	 
	 
	 	 	 	 	 	 
	Section 11. Events of Default	 	 	25	 
	 
	 	 	 	 	 	 

- iii -

 

	 	 	 	 	 	 	 
	Section	 	Heading	 	Page	 
	Section 12.     Remedies on Default, Etc.	 	 	27	 
	 
	 	 	 	 	 	 
	Section 12.1.     Acceleration
	 	 	27	 
	 
	 	 	 	 	 	 
	Section 12.2.     Other Remedies
	 	 	28	 
	 
	 	 	 	 	 	 
	Section 12.3.     Rescission
	 	 	28	 
	 
	 	 	 	 	 	 
	Section 12.4.     No Waivers or Election of Remedies, Expenses, Etc.
	 	 	28	 
	 
	 	 	 	 	 	 
	Section 13.     Registration; Exchange; Substitution of Notes	 	 	29	 
	 
	 	 	 	 	 	 
	Section 13.1.     Registration of Notes
	 	 	29	 
	 
	 	 	 	 	 	 
	Section 13.2.     Transfer and Exchange of Notes
	 	 	29	 
	 
	 	 	 	 	 	 
	Section 13.3.     Replacement of Notes
	 	 	29	 
	 
	 	 	 	 	 	 
	Section 14.     Payments on Notes	 	 	30	 
	 
	 	 	 	 	 	 
	Section 14.1.      Place of Payment
	 	 	30	 
	 
	 	 	 	 	 	 
	Section 14.2.     Home Office Payment
	 	 	30	 
	 
	 	 	 	 	 	 
	Section 15.     Expenses, Etc.	 	 	30	 
	 
	 	 	 	 	 	 
	Section 15.1.     Transaction Expenses
	 	 	30	 
	 
	 	 	 	 	 	 
	Section 15.3.     Survival
	 	 	30	 
	 
	 	 	 	 	 	 
	Section 16.     Survival of Representations and Warranties;
Entire Agreement	 	 	31	 
	 
	 	 	 	 	 	 
	Section 17.     Amendment and Waiver	 	 	31	 
	 
	 	 	 	 	 	 
	Section 17.1.     Requirements
	 	 	31	 
	 
	 	 	 	 	 	 
	Section 17.2.     Solicitation of Holders of Notes
	 	 	31	 
	 
	 	 	 	 	 	 
	Section 17.3.     Binding Effect, etc.
	 	 	32	 
	 
	 	 	 	 	 	 
	Section 17.4.     Notes Held by Company, etc.
	 	 	32	 
	 
	 	 	 	 	 	 
	Section 18.     Notices	 	 	32	 
	 
	 	 	 	 	 	 
	Section 20.     Confidential Information	 	 	32	 
	 
	 	 	 	 	 	 
	Section 21.     [Reserved]	 	 	33	 
	 
	 	 	 	 	 	 
	Section 22.     Miscellaneous	 	 	33	 

- iv -

 

	 	 	 	 	 	 	 
	Section	 	Heading	 	Page	 
	Section 22.1.     Successors and Assigns
	 	 	33	 
	 
	 	 	 	 	 	 
	Section 22.2.     Payments Due on Non-Business Days
	 	 	34	 
	 
	 	 	 	 	 	 
	Section 22.3.     Accounting Terms
	 	 	34	 
	 
	 	 	 	 	 	 
	Section 22.4.     Severability
	 	 	34	 
	 
	 	 	 	 	 	 
	Section 22.5.     Construction, etc.
	 	 	34	 
	 
	 	 	 	 	 	 
	Section 22.6.     Counterparts
	 	 	34	 
	 
	 	 	 	 	 	 
	Section 22.7.     Governing Law
	 	 	34	 
	 
	 	 	 	 	 	 
	Section 22.8.     Jurisdiction and Process
	 	 	34	 
	 
	 	 	 	 	 	 
	Section 22.9.     No Right of Set-Off
	 	 	35	 
	 
	 	 	 	 	 	 
	Section 22.10.   Governing Release of Collateral and Note Guarantees
	 	 	35	 
	 
	 	 	 	 	 	 
	Section 23.  Collateral Agent and Related Matters	 	 	35	 
	 
	 	 	 	 	 	 
	Section 23.1.     Appointment
	 	 	35	 
	 
	 	 	 	 	 	 
	Section 23.2.     Delegation of Duties
	 	 	36	 
	 
	 	 	 	 	 	 
	Section 23.4.     Reliance by the Collateral Agent
	 	 	36	 
	 
	 	 	 	 	 	 
	Section 23.5.     Notice of Default
	 	 	37	 
	 
	 	 	 	 	 	 
	Section 23.6.     Non-Reliance
	 	 	37	 
	 
	 	 	 	 	 	 
	Section 23.7.     Indemnification
	 	 	37	 
	 
	 	 	 	 	 	 
	Section 23.8.     Collateral Agent in Its Individual Capacity
	 	 	38	 
	 
	 	 	 	 	 	 
	Section 23.9.     Successor Agents
	 	 	38	 
	 
	 	 	 	 	 	 
	Section 23.10.   Authorization to Release Liens and Guarantees
	 	 	38	 
	 
	 	 	 	 	 	 
	Section 24.  Waiver of Jury Trial	 	 	38	 
	 
	 	 	 	 	 	 
	            Signature	 	 	39	 

- v -

 

	 	 	 	 	 
	Schedule A

	 	—
	 	Information Relating to the Purchaser
	 
	 	 	 	 
	Schedule B

	 	—
	 	Initial Guarantors
	 
	 	 	 	 
	Schedule C

	 	—
	 	Defined Terms
	 
	 	 	 	 
	Schedule 4.4

	 	—
	 	Form of Opinion
	 
	 	 	 	 
	Schedule 4.16

	 	—
	 	Properties
	 
	 	 	 	 
	Schedule 10.10

	 	—
	 	Subordination
	 
	 	 	 	 
	Exhibit 1

	 	—
	 	Form of 8.75% Senior Note
	 
	 	 	 	 
	Exhibit 2

	 	—
	 	Form of Guarantee and Collateral Agreement

- vi -

 

Porex Holding Corporation

c/o Aurora Capital Group

10877 Wilshire Boulevard, Suite 2100

Los Angeles, California 90024

$10,000,000 8.75% Senior Secured Notes due October 19, 2010

$10,000,000 8.75% Senior Secured Notes due October 19, 2011

$10,000,000 8.75% Senior Secured Notes due October 19, 2012

$37,500,000 8.75% Senior Secured Notes due October 19, 2013

October 19, 2009

To SNTC Holding, Inc.

Ladies and Gentlemen:

     Porex
Holding Corporation, a Delaware corporation (the “Company”), and the Subsidiaries of the
Company listed on Schedule B (collectively, the “Initial Guarantors”) each agrees jointly and
severally, with SNTC Holding, Inc., a Delaware corporation (in its individual capacity as the
“Purchaser” and also in its capacity as the Collateral Agent) as follows:

Section 1. Authorization of Notes.

     The Company has authorized the issue and sale of (i) $10,000,000 aggregate principal amount of
its 8.75% Senior Secured Notes due October 19, 2010 (the “2010 Notes”), (ii) $10,000,000 aggregate
principal amount of its 8.75% Senior Secured Notes due October 19, 2011 (the “2011 Notes”), (iii)
$10,000,000 aggregate principal amount of its 8.75% Senior Secured Notes due October 19, 2012 (the
“2012 Notes”) and (iv) $37,500,000 aggregate principal amount of its 8.75% Senior Secured Notes due
October 19, 2013 (the “2013 Notes” and, together with the 2010 Notes, the 2011 Notes and the 2012
Notes, the “Notes”, each such term to include any such notes issued in substitution therefor
pursuant to Section 13, and each series of 2010 Notes, 2011 Notes, 2012 Notes and 2013 Notes being
a “Series” of Notes). The Notes of each Series shall be substantially in the form set out in
Exhibit 1. Certain capitalized and other terms used in this Agreement are defined in Schedule C;
and references to a “Schedule” or an “Exhibit” are, unless otherwise specified, to a Schedule or an
Exhibit attached to this Agreement.

Section 2. Sale and Purchase of Notes.

     Subject to the terms and conditions of this Agreement, the Company will issue and sell to the
Purchaser and the Purchaser will purchase from the Company, at the Closing provided for in Section
3,

1

 

2010 Notes in the principal amount of $10,000,000, 2011 Notes in the principal amount of
$10,000,000, 2012 Notes in the principal amount of $10,000,000 and 2013 Notes in the principal
amount of $37,500,000 as the non-cash portion of the purchase price for the “Shares” (as defined in
the Stock Purchase Agreement) in accordance with the Stock Purchase Agreement.

Section 3. Closing.

     The sale and purchase of the Notes to be purchased by the Purchaser shall occur at the offices
of Shearman & Sterling LLP, 599 Lexington Avenue, New York, NY 10022, at 10:00 a.m., Eastern time,
at a closing (the “Closing”) occurring contemporaneously with the “Closing” (as such term is
defined in the Stock Purchase Agreement). At the Closing the Company will deliver the Notes to the
Purchaser in the form of a single Note for each Series dated the date of the Closing and registered
in the Purchaser’s name, against delivery by the Purchaser to the Company of the “Shares” (as
defined in the Stock Purchase Agreement). If at the Closing the Company shall fail to tender such
Notes to the Purchaser as provided above in this Section 3, or any of the conditions specified in
Section 4 shall not have been fulfilled to the Purchaser’s satisfaction, the Purchaser shall, at
its election, be relieved of all further obligations under this Agreement, without thereby waiving
any rights the Purchaser may have by reason of such failure or such nonfulfillment.

Section 4. Conditions to Closing.

     The Purchaser’s obligation to purchase and pay for the Notes to be sold to the Purchaser at
the Closing is subject to the fulfillment to the Purchaser’s satisfaction, prior to or at the
Closing, of the following conditions:

     Section 4.1. Representations and Warranties. The representations and warranties of the
Obligors in this Agreement shall be true and correct in all material respects at the time of the
Closing.

     Section 4.2. Performance; No Default. The Obligors shall have performed and complied with all
agreements and conditions contained in this Agreement required to be performed or complied with by
them prior to or at the Closing, and after giving effect to the issue and sale of the Notes and the
consummation of the transactions contemplated by this Agreement and the Stock Purchase Agreement,
no Default or Event of Default shall have occurred and be continuing (other than as a result of the
inaccuracy of any information included in the Guarantee and Collateral Agreement that was provided
to the Company by the Purchaser for inclusion therein that relates to the Collateral).

     Section 4.3. Compliance Certificates.

     (a) Officer’s Certificate. The Company shall have delivered to the Purchaser an Officer’s
Certificate, dated the date of the Closing, certifying that the conditions specified in Sections
4.1, 4.2 and 4.9 have been fulfilled.

     (b) Secretary’s Certificate. The Company shall have delivered to the Purchaser a certificate
of its Secretary or Assistant Secretary, dated the date of Closing, certifying as to the
resolutions attached thereto and other corporate proceedings relating to the authorization,
execution and delivery of the Notes and this Agreement.

2

 

     Section 4.4. Opinions of Counsel. The Purchaser shall have received opinions in form and
substance satisfactory to the Purchaser, dated the date of the Closing from external counsel for
the Obligors, covering matters described in Schedule 4.4 in form and substance reasonably
satisfactory to the Purchaser.

     Section 4.5. No Violation of Law, Etc. On the date of the Closing the Purchaser’s purchase of
Notes shall (a) not violate any applicable law or regulation (including, without limitation,
Regulation T, U or X of the Board) and (b) not subject the Purchaser to any tax, penalty or
liability under or pursuant to any applicable law or regulation, which law or regulation was not in
effect on the date of the Stock Purchase Agreement.

     Section 4.6. Stock Purchase. Contemporaneously with the Closing the Company shall consummate
the acquisition of the “Shares” (as defined in the Stock Purchase Agreement) in accordance with the
Stock Purchase Agreement (the “Stock Purchase”).

     Section 4.7. [Reserved].

     Section 4.8. [Reserved].

     Section 4.9. Changes in Corporate Structure. The Company shall not have changed its
jurisdiction of incorporation or organization, as applicable, or been a party to any merger or
consolidation or succeeded to all or any substantial part of the liabilities of any other entity,
at any time following the date of the Stock Purchase Agreement.

     Section 4.10. [Reserved].

     Section 4.11. [Reserved].

     Section 4.12. Note Documents. The Purchaser shall have received copies of each of the Note
Documents, executed and delivered by the Obligors party thereto.

     Section 4.13. Pledged Stock; Stock Powers; Pledged Notes. The Collateral Agent shall have
received (i) the certificates representing the shares, if any, of Capital Stock of each of the
Company’s Domestic Subsidiaries pledged to the Collateral Agent pursuant to the Guarantee and Collateral
Agreement, together with an undated stock power for each such certificate executed in blank by a
duly authorized officer of the pledgor thereof and (ii) each promissory note (if any) required to
be pledged to the Collateral Agent pursuant to the Guarantee and Collateral Agreement endorsed
(without recourse) in blank (or accompanied by an executed transfer form in blank) by the pledgor
thereof.

     Section 4.14. Filings, Registrations and Recordings. Each document (including, without
limitation, any Uniform Commercial Code financing statement) required by the Security Documents to
be filed, registered or recorded in order to create in favor of the Collateral Agent for the
benefit of the Secured Parties, a first priority perfected Lien on the Collateral described
therein, shall have been delivered to the Collateral Agent in proper form for filing, registration
or recordation.

     Section 4.15. [Reserved].

3

 

     Section 4.16. Mortgages, etc. The Purchaser shall have received the Mortgages for the
properties listed on Schedule 4.16, each duly executed and delivered by the parties thereto, and
such other documentation relating to each such Mortgage or the real property subject thereto as may
reasonably be required by the Purchaser (or arrangements satisfactory to the Purchaser for delivery
thereof shall have been made).

     Section 4.17. Certain Post-Closing Matters. Notwithstanding anything herein to the contrary,
to the extent any security interest in the Collateral or any deliverable related to the perfection
of security interests in or Liens upon the Collateral or the properties listed in Schedule 4.16
(other than any (x) the Capital Stock in each of the
Company’s Domestic Subsidiaries to be pledged, (y) such
property the security interest in or Lien upon which may be perfected by the filing of a Uniform
Commercial Code financing statement and (z) such property in which perfection of security interests
is not required under the Guaranty and Collateral Agreement) is not provided on the Closing after
the Company’s use of commercially reasonable efforts to do so, the provision of any such security
interest(s) or Liens(s) or deliverable shall not constitute a condition precedent to the issuance
of the Notes under this Section 4 on the Closing but shall be required to be delivered after the
Closing pursuant to arrangements to be satisfactory to the Purchaser.

Notwithstanding any contrary provision of the Note Documents, the Purchaser and the
Obligors hereby agree that the Company and its Subsidiaries shall deliver certificates
representing sixty-five percent (65%) of the Voting Stock of each of Porex Technologies
LTD and Porex Technologies SDN, BHD to the Purchaser, together with an undated
stock power for each such certificate executed in blank by a duly authorized officer of the
pledgor thereof, in each case as promptly as reasonably practicable following the Closing
and in no event later than 30 days following the Closing; provided that nothing in this
sentence shall be deemed to alter the requirements of Section 9.8(d) hereof.

Section 5. Representations and Warranties of the Obligors.

     To induce the Purchaser to enter into this Agreement and to acquire the Notes, the Obligors
hereby jointly represent and warrant to the Purchaser, which representations and warranties shall
be deemed made at the Closing (immediately before and immediately after giving effect to the Stock
Purchase), that:

     Section 5.1. Existence; Compliance with Law. The Company (a) (i) is duly incorporated,
validly existing and in good standing under the laws of the State of Delaware, (ii) has the
corporate power to own and operate its Property, to lease the Property it operates as lessee and to
conduct the business in which it is currently engaged except, in each case, to the extent that any
such failure to have such power could not reasonably be expected to have a Material Adverse Effect
and (iii) is duly qualified as a foreign corporation and in good standing (where such concept is
relevant) under the laws of each jurisdiction where its ownership, lease or operation of Property
or the conduct of its business requires such qualification except, in each case, to the extent that
the failure to be so qualified or in good standing (where such concept is relevant) could not
reasonably be expected to have a Material Adverse Effect and (b) is in compliance with all
Requirements of Law except to the extent that any such failure to comply therewith could not
reasonably be expected to have a Material Adverse Effect.

     Section 5.2. Corporate Power; Authorization; Enforceable Obligations. Each Obligor has the
corporate or organizational power to make, deliver and perform the Note Documents to which it is a
party and, in the case of the Company, to issue the Notes hereunder. Each Obligor has taken all
necessary corporate or other action to authorize the execution, delivery and performance of the
Note Documents to which it is a party and, in the case of the Company, to authorize the issuance of
the Notes on the terms and conditions of this Agreement. Each Obligor has duly executed and
delivered each Note Document to which it is a party. Except as could not reasonably be expected to
have a Material Adverse Effect, no consent or authorization of, filing with, notice to or other act
by or in respect of, any Governmental Authority is required in connection with the issuance of the
Notes hereunder or the execution, delivery,

4

 

performance, validity or enforceability of this Agreement or any of the other Note Documents,
except the filings referred to in Section 5.7. This Agreement and each other Note Document
constitutes a legal, valid and binding obligation of each Obligor that is a party thereto,
enforceable against each such Obligor in accordance with its terms, except as enforceability may be
limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting
the enforcement of creditors’ rights generally and by general equitable principles (whether
enforcement is sought by proceedings in equity or at law) and the implied covenants of good faith
and fair dealing.

     Section 5.3. No Legal Bar. The execution, delivery and performance of this Agreement and the
other Note Documents, the issuance of the Notes hereunder and the use of the proceeds thereof will
not (a) violate the organizational or governing documents of any of the Obligors, (b) violate any
Requirement of Law or any Contractual Obligation of the Company (other than any violation which
could not reasonably be expected to result in a Material Adverse Effect) or (c) result in, or
require, the creation or imposition of any Lien on any of the properties or revenues of any Obligor
(other than the Liens permitted by Section 10.2).

     Section 5.4. No Material Litigation. No litigation, proceeding or investigation of or before
any arbitrator or Governmental Authority is pending or, to the knowledge of the Company, threatened
against the Company or against any of its Properties (other than the “Shares” as defined under the
Stock Purchase Agreement and other than any such litigation, proceeding or investigation against
HLTH Corporation, SNTC Holding, Inc. and Porex and any of its Subsidiaries in respect of their
obligations under the Stock Purchase Agreement) or revenues which, taken as a whole, (a) involve
any of the Note Documents or (b) could reasonably be expected to have a Material Adverse Effect.

     Section 5.5. No Default. No Default or Event of Default has occurred and is continuing.

     Section 5.6. Ownership of Property; Liens. The Company has good title to, or a valid
leasehold interest in or right to use, all its Property (other than the “Shares” as defined under
the Stock Purchase Agreement), in each case, except where the failure to do so could not reasonably
be expected to have a Material Adverse Effect, and none of such Property (other than the “Shares”
as defined under the Stock Purchase Agreement) is subject to any Lien except as permitted by the
Note Documents. The Company does not own or lease any real property as of the Closing Date.

     Section 5.7. Investment Company Act. The Company is not an “investment company”, or a company
“controlled” by an “investment company”, within the meaning of the Investment Company Act of 1940,
as amended.

     Section 5.8. Subsidiaries. The Company shall have no Subsidiaries immediately prior to the
Closing.

     Section 5.9. Accuracy of Information, Etc. No statement or information contained in any
certificate furnished to the Purchaser, by or on behalf of the Company for use in connection with
the transactions contemplated by this Agreement or the other Note Documents when taken as a whole,
contained as of the date such statement, information, or certificate was so furnished, any untrue
statement of a material fact or omitted to state a material fact necessary in order to make the
statements contained herein or therein not materially misleading in light of the circumstances in
which they were made.

5

 

     Section 5.10. Security Documents. (a) The Guarantee and Collateral Agreement is effective to
create in favor of the Collateral Agent for the benefit of the Secured Parties, a legal, valid and
enforceable security interest in the Collateral described therein (including any proceeds of any
item of Collateral) to the extent required by the Guarantee and Collateral Agreement. In the case
of (i) the Pledged Securities described in the Guarantee and Collateral Agreement, when any stock
certificates or notes, as applicable, representing such Pledged Securities are delivered to the
Collateral Agent and (ii) the other Collateral described in the Guarantee and Collateral Agreement,
when financing statements in appropriate form are filed with the Delaware Secretary of State (which
financing statements have been duly completed and delivered to the Collateral Agent) and a short
form of the Guarantee and Collateral Agreement is filed with the United States Patent and Trademark
Office and the United States Copyright Office (which short form has been duly completed and
executed and delivered to the Collateral Agent), the Collateral Agent shall have a fully perfected
Lien on, and security interest in, all right, title and interest of the Obligors in such Collateral
(including any proceeds of any item of Collateral) (to the extent a security interest in such
Collateral can be perfected through the filing of financing statements with the Delaware Secretary
of State and the filing of such short form with the United States Patent and Trademark Office and
the United States Copyright Office, and through the delivery of the Pledged Securities required to
be delivered on the Closing Date), as security for the Obligations, in each case prior and superior
in right to any other Person (except Liens permitted by Section 10.3) to the extent required by the
Guarantee and Collateral Agreement.

     (b) Upon the execution and delivery of any Mortgage to be executed and delivered pursuant to
Sections 4.16 (which have been executed and delivered or for which arrangements satisfactory to the
Purchaser for the execution and delivery thereof have been made) or 9.8(b), such Mortgage shall be
effective to create in favor of the Collateral Agent for the benefit of the Secured Parties a
legal, valid and enforceable Lien on the mortgaged property described therein and proceeds thereof;
and when such Mortgage is filed in the recording office designated by the Company, such Mortgage
shall constitute a fully perfected Lien on, and security interest in, all right, title and interest
of the Obligors in such mortgaged property and the proceeds thereof, as security for the
Obligations (as defined in the relevant Mortgage), in each case prior and superior in right to any
other Person (other than Liens permitted by Section 10.3).

     Section 5.11. Stock Purchase. The Stock Purchase Agreement has been assigned to the Company
by Aurora Equity Partners III L.P. and Aurora Overseas Equity Partners III, L.P. in accordance with
Section 11.05 thereof.

     Section 5.12. Operations of the Company. The Company was formed solely for the purpose of
consummating the transactions contemplated by the Stock Purchase Agreement and this Agreement, has
engaged in no other business activities, has conducted its operations only as contemplated by such
agreements and, immediately prior to the consummation of such transactions, had no material assets
or liabilities and no outstanding Indebtedness.

     Section 5.13. Private Offering by the Obligors. Neither the Company nor anyone acting on its
behalf has offered the Notes or the Note Guarantees by means of any form of general advertising or
general soliciation (as such terms are defined in Regualtion D under the Securities Act of 1933, as
amended) or has offered the Notes or the Note Guarantees or any similar securities for sale to, or
solicited any offer to buy any of the same from, or otherwise approached or negotiated in respect
thereof with, any

6

 

person other than the Purchaser, which has been offered the Notes and the Note Guarantees at a
private sale for investment. Neither the Company nor anyone acting on its or their behalf has
taken any action that would subject the issuance or sale of the Notes and the Note Guarantees to
the registration requirements of Section 5 of the Securities Act or to the registration
requirements of any securities or blue sky laws of any applicable jurisdiction.

     Section 5.14. Existing Indebtedness. The Company has no Indebtedness outstanding immediately
prior to the Closing.

     Section 5.15. Taxes. Immediately prior to the Closing, the Company (i) has filed or caused to
be filed all federal, state, provincial and other tax returns that are required to be filed and
(ii) has paid all taxes shown to be due and payable on said returns and all other taxes, fees or
other charges imposed on it or any of its Property by any Governmental Authority responsible for
administering taxes.

Section 6. Representations of the Purchaser.

     Section 6.1. Purchase for Investment. The Purchaser represents that (i) it is acquiring the
Notes and the Note Guarantees for its own account and not with a view to the distribution thereof,
(ii) it has such knowledge and experience in financial affairs that it is capable of evaluating the
merits and risks of an investment in the Notes, and (iii) its financial situation is such that it
can afford to bear the economic risk of holding the Notes for an indefinite period of time and can
afford to suffer the complete loss of its investment in the Notes. The Purchaser understands that
the Notes and the Note Guarantees have not been registered under the Securities Act and may be
resold only if registered pursuant to the provisions of the Securities Act or if an exemption from
registration is available, except under circumstances where neither such registration nor such an
exemption is required by law, and that the Obligors are not required to register the Notes or the
Note Guarantees. The Purchaser understands that, in addition to any other legends required by
applicable state securities laws, a legend will be placed on any certificate or certificates
representing the Notes substantially to the following effect:

“THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
“SECURITIES ACT”), OR ANY STATE SECURITIES LAWS. NEITHER THIS SECURITY NOR ANY INTEREST OR
PARTICIPATION HEREIN MAY BE REOFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED OR
OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION  UNLESS SUCH TRANSACTION IS EXEMPT
FROM, OR NOT SUBJECT TO, REGISTRATION UNDER THE SECURITIES ACT.

THE SECURITIES REPRESENTED BY THIS INSTRUMENT MAY NOT BE SOLD OR OTHERWISE TRANSFERRED EXCEPT IN
COMPLIANCE WITH THE NOTE PURCHASE AGREEMENT REFERRED TO BELOW.

IN CONNECTION WITH ANY TRANSFER, THE HOLDER WILL DELIVER TO THE COMPANY SUCH OPINION OF
COUNSEL AS MAY BE REASONABLY REQUESTED TO CONFIRM THAT THE TRANSFER COMPLIES WITH THE FOREGOING
RESTRICTIONS.”

Section 7. Tax Indemnification.

7

 

     All payments whatsoever under this Agreement and the Notes will be made in lawful currency of
the United States of America free and clear of, and without liability for withholding or deduction
for or on account of, any present or future taxes of whatever nature imposed or levied by or on
behalf of any jurisdiction (other than Excluded Taxes), unless the withholding or deduction of such
tax is compelled by law. So long as the holder of a Note delivers to the Company evidence
(including the appropriate IRS forms) that, at the Closing (or at such later time as such holder
first becomes a holder), it is entitled to receive payments from each Obligor without any
requirement for withholding or deduction of tax imposed by the United States, then if any deduction
or withholding for any tax shall at any time be required in respect of any amounts to be paid by an
Obligor under this Agreement or the Notes, the Obligor will pay to the relevant jurisdiction the
full amount required to be withheld, deducted or otherwise paid before penalties attach thereto or
interest accrues thereon, and such holder of a Note will be entitled to receive such additional
amounts as may be necessary in order that the net amounts paid to such holder pursuant to the terms
of this Agreement or the Notes after such deduction, withholding or payment (including, without
limitation, any required deduction or withholding of tax on or with respect to such additional
amount), shall be not less than the amounts then due and payable to such holder under the terms of
this Agreement or the Notes before the assessment of such tax. Notwithstanding the foregoing, no
payment of any additional amounts shall be required to be made for or on account of:

     (a) any tax that would not have been imposed but for the existence of any present or former
connection between a holder of a Note (or a fiduciary, settlor, beneficiary, member of, shareholder
of, or possessor of a power over, such holder, if such holder is an estate, trust, partnership or
corporation or any Person other than the holder to whom the Notes or any amount payable thereon is
attributable for the purposes of such tax) and the relevant jurisdiction imposing in the tax, other
than the mere holding of the relevant Note and the receipt of payments and enforcement of rights
thereunder or in respect thereof; or

     (b) any tax that would not have been imposed but for the delay or failure by a holder of a
Note (following at least 10 days prior written request by the Company) in the filing with the
relevant jurisdiction imposing the tax of any forms that are required by applicable law to be filed
by such holder in order to avoid or reduce such taxes, provided that the filing of such forms would
not (in such holder’s reasonable judgment) impose any unreasonable burden (in time, resources or
otherwise) on such holder or result in any confidential or proprietary tax return information being
revealed, either directly or indirectly, to any Person.

     The Obligors will furnish the holders of Notes, promptly and in any event within 60 days after
the date of any payment by an Obligor of any tax in respect of any amounts paid under this
Agreement or the Notes, the original tax receipt issued by the relevant taxation or other
authorities involved for all amounts paid as aforesaid (or if such original tax receipt is not
available or must legally be kept in the possession of an Obligor, a duly certified copy of the
original tax receipt or any other reasonably satisfactory evidence of payment), together with such
other documentary evidence with respect to such payments as may be reasonably requested from time
to time by any holder of a Note.

     If an Obligor is required by any applicable law, as modified by the practice of the taxation
or other authority of any relevant jurisdiction, to make any deduction or withholding of any tax in
respect of which the Obligor would be required to pay any additional amount under this Section 7,
but for any reason does not make such deduction or withholding with the result that a liability in
respect of such tax is assessed directly against such holder of any Note, and such holder pays such
liability, then the Obligor will promptly reimburse such holder for such payment (including any
related interest or penalties to the

8

 

extent such interest or penalties arise by virtue of a default or delay by the Obligor) upon demand
by such holder.

     The obligations of the Obligors under this Section 7 shall be joint and several, and shall
survive the payment or transfer of any Note.

Section 8. Repayment and Prepayment of the Notes.

     Section 8.1. Required Repayments and Prepayments. (a) The Company shall repay the aggregate
outstanding principal amount of the 2010 Notes on the first anniversary of the Closing; the
aggregate outstanding principal amount of the 2011 Notes on the second anniversary of the Closing;
the aggregate outstanding principal amount of the 2012 Notes on the third anniversary of the
Closing; and the aggregate outstanding principal amount of the 2013 Notes on the fourth anniversary
of the Closing. In each case, such amounts shall be reduced as a result of the application of any
prepayments in accordance with Section 8.1(b) or (c) or 8.2.

     (b) Unless the Required Holders of the relevant Series shall otherwise agree, if any Funded
Debt (excluding any Indebtedness permitted to be incurred in accordance with Section 10.2 or
incurred with the consent of the Required Holders) shall be incurred by the Company or any
Guarantor, an amount equal to 100% of the Net Cash Proceeds thereof shall be applied within two
Business Days of the date of receipt of such Net Cash Proceeds toward the pro rata prepayment of
the Notes of each Series as set forth in Section 8.1(d).

     (c) Unless the Required Holders of the relevant Series shall otherwise agree, if on any date
any of the Company or any Subsidiary shall for its own account receive Net Cash Proceeds from any
Asset Sale or Recovery Event then, unless a Reinvestment Notice shall be delivered in respect
thereof, such Net Cash Proceeds shall be applied within two Business Days of such date toward the
pro rata prepayment of the Notes of each Series as set forth in Section 8.1(d); provided
that notwithstanding the foregoing, on the date (the “Trigger Date”) that is 12 months after the
applicable Reinvestment Prepayment Date, the Notes of each Series shall be prepaid on a pro rata
basis as set forth in Section 8.1(d) by an amount equal to the portion of any Reinvestment
Prepayment Amount with respect to the relevant Reinvestment Event not actually expended by such
Trigger Date.

     (d) Amounts to be applied in connection with repayments and prepayments pursuant to this
Section 8.1(b) or (c) shall be applied to the pro rata prepayment of each Series of Notes until
paid in full. Each repayment or prepayment of the Notes under Section 8.1 shall be accompanied by
accrued interest to the date of such repayment or prepayment on the amount repaid or prepaid.

     Section 8.2. Optional Prepayments. The Company may, at its option, upon advance written
notice, prepay at any time all, or from time to time any part of, the Notes of any Series, at 100%
of the principal amount so prepaid plus accrued interest to the date of such prepayment on the
amount prepaid.

     Section 8.3. Allocation of Partial Repayments and Prepayments. In the case of each partial
repayment or prepayment of the Notes of a Series, the principal amount of the Notes to be repaid or
prepaid shall be allocated among all of the Notes of such Series at the time outstanding in
proportion, as nearly as practicable, to the respective unpaid principal amounts thereof.

9

 

     Section 8.4. Maturity; Surrender, Etc. In the case of each repayment or prepayment of Notes
pursuant to this Section 8, the principal amount of each Note to be repaid or prepaid shall mature
and become due and payable on the date fixed for such repayment or prepayment (which shall be a
Business Day), together with interest on such principal amount accrued to such date. From and
after such date, unless the Company shall fail to pay such principal amount when so due and
payable, together with the interest as aforesaid, interest on such principal amount shall cease to
accrue. Any Note paid or prepaid in full shall be surrendered to the Company and cancelled and
shall not be reissued, and no Note shall be issued in lieu of any repaid or prepaid principal
amount of any Note.

     Section 8.5. Purchase of Notes. The Company will not and will not permit any Subsidiary to
purchase, redeem, prepay or otherwise acquire, directly or indirectly, any of the outstanding Notes
except upon the payment or prepayment of the Notes in accordance with the terms of this Agreement
and the Notes. The Company will promptly cancel all Notes acquired by it or any Affiliate pursuant
to any payment or prepayment of Notes pursuant to any provision of this Agreement and no Notes may
be issued in substitution or exchange for any such Notes.

Section 9. Affirmative Covenants.

     Each of the Obligors hereby agrees that, so long as any amount is owing to any holder of the
Notes under any Note Document (other than contingent or indemnification obligations not then due),
the Obligors shall and (to the extent relevant) shall cause each of the Subsidiaries to:

     Section 9.1. Financial Statements. Furnish to each holder of the Notes:

     (a) within 120 days after the first fiscal year of the Company ending after the
Closing, and within 90 days after each fiscal year of the Company thereafter, a copy of the
audited consolidated balance sheet of the Company and its consolidated Subsidiaries as at
the end of such year and the related audited consolidated statements of income and of cash
flows for such year, setting forth in each case in comparative form the figures as of the
end of and for the previous year, reported on without qualification arising out of the scope
of the audit, by independent certified public accountants of nationally recognized standing;
and

     (b) as soon as available, but in any event not later than 60 days after the end of each
of the first three quarterly periods of each fiscal year of the Company, commencing with the
first such fiscal quarter ending after the Closing, the unaudited consolidated balance sheet
of the Company and its consolidated Subsidiaries as at the end of such quarter and the
related unaudited consolidated statements of income and of cash flows for such quarter and
the portion of the fiscal year through the end of such quarter, setting forth in each case
in comparative form the figures as of the end of and for the corresponding period in the
previous year, certified by a Responsible Officer as being fairly stated in all material
respects (subject to normal year-end audit adjustments and the lack of notes);

all such financial statements to be prepared in accordance with GAAP applied consistently
throughout the periods reflected therein and with prior periods (except as approved by such
accountants or such Responsible Officer, as the case may be, and disclosed therein and except, in
the case of the financial statements referred to in clause (b), for normal year-end audit
adjustments and the lack of footnotes).

10

 

     Section 9.2. Certificates; Other Information. Furnish to each holder of the Notes:

     (a) concurrently with the delivery of any financial statements pursuant to Section 9.1,
(i) a certificate of a Responsible Officer on behalf of the Company stating that such
Responsible Officer has obtained no knowledge of any Default or Event of Default except as
specified in such certificate and (ii) to the extent not previously disclosed to the holders
of the Notes, a description of any new Subsidiary and of any change in the jurisdiction of
organization of any Obligor since the date of the most recent list delivered pursuant to
this clause (ii) (or, in the case of the first such list so delivered, since the Closing);
and

     (b) as soon as available, but in any event not later than 60 days after the end of each
fiscal year of the Company (commencing with the fiscal year ending on December 31, 2009), a
budget for the following fiscal year consisting of consolidated statements of projected cash
flow and projected income (collectively, the “Annual Operating Budget”);

     (c) [reserved];

     (d) promptly after the same are filed, copies of all financial statements and reports
that the Company or any Subsidiary may make to, or file with, the SEC, in each case to the
extent not already provided pursuant to Section 9.1 or any other clause of this Section 9.2;

     (e) promptly upon delivery thereof to the Company or any Subsidiary and to the extent
permitted, copies of any accountants’ letters addressed to its Board of Directors (or any
committee thereof);

     (f) promptly, such additional financial and other information as any holders of the
Notes may from time to time reasonably request; provided that in no event shall such
information consist of Trade Secrets (as defined in the Guarantee and Collateral Agreement);
and

     (g) at the end of each fiscal quarter of the Company, and promptly upon any Default,
notice to the Collateral Agent of any location at which equipment or inventory is kept, if
not already specified in the Guarantee and Collateral Agreement.

     Section 9.3. Payment of Obligations. Pay, discharge or otherwise satisfy at or before
maturity or before they become delinquent, as the case may be, all its taxes, governmental
assessments and governmental charges (other than Indebtedness), except where the amount or validity
thereof is currently being contested in good faith by appropriate proceedings and reserves required
in conformity with GAAP with respect thereto have been provided on the books of the Company or its
Subsidiaries, as the case may be, or except where the failure to pay such taxes, assessments or
charges could not reasonably be expected to have a Material Adverse Effect.

     Section 9.4. Conduct of Business and Maintenance of Existence, etc; Compliance. (a) (i)
Preserve, renew and keep in full force and effect its corporate or other existence and (ii) take
all reasonable action to maintain all rights, privileges and franchises necessary or desirable in
the normal conduct of its business, except, in each case, as otherwise permitted by Section 10.4 or
except, in the case of clause (ii) above, to the extent that failure to do so could not reasonably
be expected to have a Material

11

 

Adverse Effect; and (b) comply with all Requirements of Law except to the extent that failure to
comply therewith could not, in the aggregate, reasonably be expected to have a Material Adverse
Effect.

     Section 9.5. Maintenance of Property; Insurance. (a) Keep all Property useful and necessary
in its business in reasonably good working order and condition, ordinary wear and tear excepted
except where a failure to do so, individually or in the aggregate, could not reasonably be expected
to have a Material Adverse Effect.

     (b) Take all reasonable and necessary steps, including, in any proceeding before the United
States Patent and Trademark Office or the United States Copyright Office, to maintain and pursue
each application (and to obtain the relevant registration) and to maintain each registration of the
Intellectual Property, including, filing of applications for renewal, affidavits of use and
affidavits of incontestability, in each case as determined in the reasonable business judgment of
the Company, except in each case to the extent that failure to do so could not reasonably be
expected to have a Material Adverse Effect.

     (c) Maintain insurance with financially sound and reputable insurance companies insurance on
all its material Property in at least such amounts and against at least such risks as is consistent
with its past practice, or as is customarily maintained by comparably situated companies. All such
insurance shall, to the extent customary (but in any event, not including business interruption
insurance and personal injury insurance) (i) provide that no cancellation thereof shall be
effective until at least 30 days after receipt by the holders of the Notes of written notice
thereof and (ii) name the holders of the Notes as additional insured parties or loss payees, as
applicable.

     (d) Obtain at the Closing or promptly thereafter ALTA mortgagee title insurance policies
issued by one or more title companies reasonably satisfactory to the Required Holders with respect
to the properties listed on Schedule 4.16 in amounts not less than the fair market value of such
real property or such other amount reasonably required by the Required Holders, and a current ALTA
survey thereof, together with a surveyor’s certificate unless the title insurance policy referred
to above shall not contain an exception for any matter shown by a survey (except to the extent an
existing survey has been provided and specifically incorporated into such title insurance policy),
each in form and substance reasonably satisfactory to the Required Holders; and maintain flood
insurance with respect to each owned real property and leasehold property located in an area at
high risk for flood.

     Section 9.6. Books and Records. Keep proper books of records and account in which full, true
and correct entries in conformity with GAAP and all Requirements of Law shall be made of all
material dealings and transactions in relation to its business and activities.

     Section 9.7. Notices. Promptly upon a Responsible Officer of any Obligor obtaining knowledge
thereof, give notice to each holder of the Notes of:

     (a) the occurrence of any Default or Event of Default;

     (b) any litigation, investigation or proceeding which may exist at any time between the
Company or any of its Subsidiaries and any other Person, that in either case, if adversely
determined, could reasonably be expected to have a Material Adverse Effect;

12

 

     (c) the following events, that, individually or in the aggregate, could reasonably be
expected to have a Material Adverse Effect, as soon as possible and in any event within 30
days after the Company or any Subsidiary knows thereof: (i) the occurrence of any Reportable
Event with respect to any Single Employer Plan, a failure to make any required contribution
to a Single Employer Plan, the creation of any Lien in favor of the PBGC or a Single
Employer Plan or any withdrawal from, or the termination, Reorganization or Insolvency of,
any Multiemployer Plan, (ii) the institution of proceedings or the taking of any other
action by the PBGC or the Company or any Commonly Controlled Entity or any Multiemployer
Plan with respect to the withdrawal from, or the termination, Reorganization or Insolvency
of, any Plan or (iii) the occurrence of any similar events with respect to a Commonly
Controlled Plan, that would reasonably be likely to result in a direct obligation of the
Company or any of its Subsidiaries to pay money;

     (d) any development or event that has had or could reasonably be expected to have a
Material Adverse Effect; and

     (e) the acquisition of any Property after the Closing Date in which the Collateral
Agent does not already have a perfected security interest and in which a security interest
is required to be created or perfected pursuant to Section 9.8.

Each notice pursuant to this Section shall be accompanied by a statement of a Responsible Officer
setting forth details of the occurrence referred to therein and stating what action the Company or
the relevant Subsidiary proposes to take with respect thereto.

     Section 9.8. Additional Collateral, etc. (a) With respect to any Property (other than assets
expressly excluded from the Collateral pursuant to the Security Documents) acquired after the
Closing Date by any Obligor (other than (x) any interests in real property, (y) any Property
subject to a Lien expressly permitted by Section 10.3(f) and (z) Instruments and Certificated
Securities, which are referred to in the last sentence of this paragraph (a)) as to which the
Collateral Agent for the benefit of the Secured Parties does not have a perfected Lien, promptly,
but in any case within 30 days, (i) give notice of such Property to the Collateral Agent and
execute and deliver to the Collateral Agent such amendments to the Guarantee and Collateral
Agreement or such other documents as the Collateral Agent reasonably requests to grant to the
Collateral Agent for the benefit of the Secured Parties a security interest in such Property and
(ii) take all actions reasonably requested by the Collateral Agent to grant to the Collateral Agent
for the benefit of the Secured Parties a perfected security interest (to the extent required by the
Security Documents and with the priority required by Section 5.10) in such Property (with respect
to Property of a type owned by an Obligor as of the Closing to the extent the Collateral Agent, for
the benefit of the Secured Parties, has a perfected security interest in such Property as of the
Closing), including, without limitation, the filing of Uniform Commercial Code financing statements
in such jurisdictions as may be required by the Guarantee and Collateral Agreement or by law or as
may be reasonably requested by the Collateral Agent. Any Instrument or Certificated Security in
excess of $1,000,000 shall be promptly delivered to the Collateral Agent indorsed in a manner
reasonably satisfactory to the Collateral Agent to be held as Collateral pursuant to the relevant
Security Document.

     (b) With respect to any fee interest in any real property located in the United States having
a value (together with improvements thereof) of at least $1,000,000 acquired after the Closing Date
by any Obligor (other than any such real property subject to a Lien expressly permitted by Section
10.3(f)), (i)

13

 

give notice of such acquisition to the Collateral Agent and, if requested by the Collateral Agent,
execute and deliver a first priority Mortgage (subject to Liens permitted by Section 10.3) in favor
of the Collateral Agent for the benefit of the Secured Parties, covering such real property
(provided that no Mortgage nor survey shall be obtained if the Collateral Agent reasonably
determines in consultation with the Company that the costs of obtaining such Mortgage or survey are
excessive in relation to the value of the security to be afforded thereby), (ii) if reasonably
requested by the Collateral Agent (A) provide the holders of the Notes with a lenders’ title
insurance policy with extended coverage covering such real property in an amount at least equal to
the purchase price of such real property (or such other amount as shall be reasonably specified by
the Collateral Agent) as well as a current ALTA survey thereof, together with a surveyor’s
certificate unless the title insurance policy referred to above shall not contain an exception for
any matter shown by a survey (except to the extent an existing survey has been provided and
specifically incorporated into such title insurance policy), each in form and substance reasonably
satisfactory to the Collateral Agent, and (B) use commercially reasonable efforts to obtain any
consents reasonably deemed necessary by the Collateral Agent, in connection with such Mortgage,
each of the foregoing in form and substance reasonably satisfactory to the Collateral Agent and
(iii) if requested by the Collateral Agent deliver to the Collateral Agent legal opinions relating
to the matters described above, which opinions shall be in form and substance, and from counsel,
reasonably satisfactory to the Collateral Agent.

     (c) With respect to any new Subsidiary created or acquired after the Closing Date by any
Obligor, promptly, but in any case within 30 days of such acquisition, (i) give notice of such
acquisition or creation to the Collateral Agent and, if requested by the Collateral Agent, execute
and deliver to the Collateral Agent such amendments to the Guarantee and Collateral Agreement or
such other documents as the Collateral Agent reasonably deems necessary to grant to the Collateral
Agent for the benefit of the Secured Parties a perfected security interest (to the extent required
by the Security Documents and with the priority required by Section 5.7) in the Capital Stock of
such new Subsidiary that is owned by such Obligor (provided that no Capital Stock of any Foreign
Subsidiary that is a CFC shall be required to be pledged, except for 65% of the Voting Stock and
100% of the Capital Stock (other than Voting Stock) of such CFC of any Foreign Subsidiary owned
directly by the Company or any of its Domestic Subsidiaries), (ii) deliver to the Collateral Agent
the certificates, if any, representing such Capital Stock, together with undated stock powers, in
blank, executed and delivered by a duly authorized officer of such Obligor, and (iii) cause such
new Subsidiary (A) to become a party to the Guarantee and Collateral Agreement and (B) to take such
actions necessary or advisable to grant to the Collateral Agent for the benefit of the Secured
Parties a perfected security interest (to the extent required by the Security Documents and with
the priority required by Section 5.10) in the Collateral described in the Guarantee and Collateral
Agreement with respect to such new Subsidiary (to the extent the Collateral Agent, for the benefit
of the Secured Parties has a perfected security interest in the same type of Collateral as of the
Closing), including, without limitation, the filing of Uniform Commercial Code financing statements
in such jurisdictions as may be required by the Guarantee and Collateral Agreement or by law or as
may be reasonably requested by the Collateral Agent. For the avoidance of doubt, with respect to
any new Foreign Subsidiary that is a CFC created or acquired after the Closing by any Obligor, such
Obligor’s obligations under this clause (c) shall include obligations corresponding to each action
described in clause (d) below (as such clause (d) relates to any Foreign Subsidiary that is a CFC
at the Closing).

     (d) With respect to any Foreign Subsidiary that is a CFC owned directly by the Company or any
of its Domestic Subsidiaries at the Closing, other than Porex Technologies LTD, promptly, but in
any case within 30 days of the Closing, (i) take such actions necessary or advisable to grant to
the Collateral

14

 

Agent for the benefit of the Secured Parties a perfected security interest in 65% of the Voting
Stock and 100% of the Capital Stock (other than Voting Stock) of such Foreign Subsidiary, (ii)
execute and deliver to the Collateral Agent such filings, registrations and other documents as the
Collateral Agent reasonably deems necessary to grant to the Collateral Agent for the benefit of the
Secured Parties a perfected first-priority security interest in such Capital Stock of such Foreign
Subsidiary, and (iii) deliver to the Collateral Agent an opinion of external local counsel to such
Foreign Subsidiary, in form and substance reasonably acceptable to the Collateral Agent, confirming
the legality, validity, enforceability, priority and perfection of such security interest.

     (e) Notwithstanding anything to the contrary in any Note Document, this Section 9.8 shall not
apply with respect to any Collateral to the extent the Required Holders have reasonably determined
that the value of such Collateral to which this Section 9.8 would otherwise apply is insufficient
to justify the difficulty, time and/or expense of obtaining a perfected Lien therein.

     Section 9.9. Further Assurances. (a) Maintain the security interest created by the Security
Documents as a perfected security interest having at least the priority described in Section 5.10
(to the extent such security interest can be perfected through the filing of UCC-1 financing
statements, the Intellectual Property filings to be made pursuant to Schedule 4 of the Guarantee
and Collateral Agreement or the delivery of Pledged Securities required to be delivered under the
Guarantee and Collateral Agreement), subject to the rights of the Obligors under the Note Documents
to dispose of the Collateral. From time to time the Obligors shall execute and deliver, or cause
to be executed and delivered, such additional instruments, certificates or documents, and take all
such actions, as the Collateral Agent may reasonably request for the purposes of implementing or
effectuating the provisions of this Agreement and the other Note Documents, or of renewing the
rights of the Secured Parties with respect to the Collateral as to which the Collateral Agent for
the ratable benefit of the Secured Parties has a perfected Lien pursuant hereto or thereto,
including, without limitation, filing any financing or continuation statements or financing change
statements under the Uniform Commercial Code (or other similar laws) in effect in any United States
jurisdiction with respect to the security interests created hereby. At the reasonable request of
the Collateral Agent, the Company will, and will cause each Obligor to, provide information with
respect to its deposit accounts and, at the reasonable request of the Collateral Agent, the Company
will, and will cause each Obligor to, execute and deliver account control agreements with financial
institutions holding such accounts (except in the case of deposit accounts that are “Exempt Deposit
Accounts” as defined under the Guarantee and Collateral Agreement).

Section 10. Negative Covenants.

     Each of the Obligors (on behalf of itself and each of the Subsidiaries) hereby agrees that, so
long as any amount is owing to any holder of the Notes under any Note Document (other than
contingent or indemnification obligations not then due), it shall not, and shall not permit any of
the Subsidiaries to:

     Section 10.1. Amendments of Certain Documents. Enter into any amendment or modification of,
or agree to or accept any waiver under, its Organizational Documents that (i) is adverse in any
material respect to the interest of the holders of the Notes or (ii) adversely affects the voting
rights or voting power of any Capital Stock forming part of the Collateral.

15

 

     Section 10.2. Indebtedness. Create, issue, incur, assume, or suffer to exist any
Indebtedness, except:

     (a) Indebtedness of any Obligor pursuant to any Note Document and any Permitted
Refinancing Indebtedness thereof provided that such Permitted Refinancing Indebtedness is
unsecured and subordinated on the terms set forth in Schedule 10.2;

     (b) Indebtedness (i) of the Company to any Obligor, (ii) of any Obligor to the Company
or another Obligor, or (iii) of a Foreign Subsidiary to any Obligor not to exceed an
aggregate principal amount of $3,000,000 at any one time outstanding; provided that
such Indebtedness under this clause (b) is either subordinated on the terms set forth in
Schedule 10.2 (if incurred pursuant to subclause (i) or (ii)) or evidenced by a promissory
note that has been pledged and delivered to the Collateral Agent for the benefit of the
Secured Parties (if incurred pursuant to subclause (i), (ii) or (iii));

     (c) Indebtedness consisting of Capital Lease Obligations and purchase money
Indebtedness in an aggregate principal amount not to exceed $2,500,000 at any one time
outstanding, including any Permitted Refinancing Indebtedness thereof;

     (d) Guarantee Obligations by any Obligor of obligations of any other Obligor;

     (e) Indebtedness of the Company or any of its Subsidiaries arising from the honoring by
a bank or other financial institution of a check, draft or similar instrument inadvertently
drawn by the Company or such Subsidiary in the ordinary course of business against
insufficient funds so long as such Indebtedness is promptly repaid;

     (f) Indebtedness of the Company or any of its Subsidiaries in respect of workers’
compensation claims; property casualty or liability insurance; take-or-pay obligations in
supply arrangements; self-insurance obligations; performance, bid, surety bonds; and
completion guaranties (in each case in the ordinary course of business);

     (g) Indebtedness of any Obligor as an account party in respect of letters of credit
issued in the ordinary course of business, provided that upon the drawing of such letters of
credit, such Indebtedness is reimbursed within 30 days following such drawing;

     (h) Indebtedness of any Person that becomes a Subsidiary as part of a Permitted
Acquisition or Investment permitted hereunder after the Closing Date, and any Permitted
Refinancing Indebtedness thereof; provided that (A) such acquired Indebtedness exists at the
time such Person becomes a Subsidiary and is not created in contemplation of or in
connection with such Person becoming a Subsidiary (except to the extent such acquired
Indebtedness refinanced (and did not increase principal (except for accrued interest premium
or fees, or expenses) or shorten maturity during the term of this Agreement) other
Indebtedness to facilitate such entity becoming a Subsidiary), and (B) neither the Company
nor any Subsidiary shall be a new obligor therefor and no property of the Company or any
other Subsidiary shall provide security therefor, and (C) either (1) (i) the aggregate
amount of Indebtedness that is incurred pursuant to this clause shall not exceed $2,000,000
at any one time outstanding or (2) the Consolidated Total Leverage

16

 

Ratio of the Company, as at the last day of the most recently ended fiscal quarter of the
Company for which internal financial statements are available, on a pro forma basis
(assuming that the consummation of such acquisition and the incurrence or assumption of any
Indebtedness in connection therewith occurred on the first day of the four consecutive
fiscal quarters ending on such day), does not exceed 3.25:1.

     (i) the incurrence by Porex or any of its Subsidiaries of additional Indebtedness and
letters of credit under Revolving Credit Facilities in an aggregate principal amount at any
one time outstanding under this clause (i) (with letters of credit being deemed to have a
principal amount equal to the maximum potential liability of Porex and its Subsidiaries
thereunder) not to exceed $12,500,000, provided that such Indebtedness (A) is incurred by an
Obligor and is unsecured or (B) is incurred by a Foreign Subsidiary and is either unsecured
or secured only by the assets of such Foreign Subsidiary; provided that to the extent that
such Indebtedness is incurred by Foreign Subsidiaries, such Indebtedness shall be
non-recourse to the Obligors;

     (j) Indebtedness under Hedge Agreements designed solely to protect the Company and its
Subsidiaries against fluctuations in commodity prices, foreign exchange rates or interest
rates and not entered into for speculative purposes; and

     (k) Indebtedness consisting of Investments permitted by Section 10.7(d)(ii) or (j).

     Section 10.3. Liens. Create, incur, assume or suffer to exist any Lien upon any of its
Property, whether now owned or hereafter acquired, except for:

     (a) Liens for taxes, assessments or governmental charges or claims not yet due or which
are being contested in good faith by appropriate proceedings; provided that adequate
reserves with respect thereto are maintained on the books of the Company or its
Subsidiaries, as the case may be, to the extent required by GAAP;

     (b) landlords’, carriers’, warehousemen’s, mechanics’, materialmen’s, repairmen’s or
other like Liens arising in the ordinary course of business which are not overdue for a
period of more than 30 days, that are being contested in good faith by appropriate
proceedings;

     (c) pledges, deposits or statutory trusts in connection with workers’ compensation,
unemployment insurance and other social security legislation;

     (d) deposits and other Liens to secure the performance of bids, trade contracts (other
than for borrowed money), leases, subleases, statutory obligations, surety and appeal bonds,
performance bonds and other obligations of a like nature incurred in the ordinary course of
business;

     (e) easements, zoning restrictions, rights-of-way, restrictions and other similar
encumbrances incurred in the ordinary course of business;

     (f) Liens securing Indebtedness of the Company or any Subsidiary incurred pursuant to
Section 10.2(c) or 10.2(h); provided that in the case of any such Liens securing
Indebtedness

17

 

incurred pursuant to Section 10.2(c) to the extent incurred to finance Permitted
Acquisitions or Investments permitted under Section 10.7, (x) such Liens shall be created
substantially concurrently with the acquisition of the assets financed by such Indebtedness
and (y) such Liens do not at any time encumber any Property of the Company or any Subsidiary
other than the Property financed by such Indebtedness and the proceeds thereof;

     (g) Liens created pursuant to the Note Documents;

     (h) any interest or title of a lessor under any lease entered into by the Company or
any Subsidiary in the ordinary course of its business, and any financing statement filed in
connection with any such lease;

     (i) Liens arising from judgments in circumstances not constituting an Event of Default
under Section 11(h);

     (j) Liens securing acquired Indebtedness permitted by Section 10.2(h); provided that
such Liens do not extend to property not subject to such Liens at the time of acquisition
and were not granted in connection therewith or anticipation thereof (other than
improvements thereon) and are no more favorable to the lienholders than such existing Lien;

     (k) receipt of progress payments and advances from customers in the ordinary course of
business to the extent same creates a Lien on the related inventory and proceeds thereof;

     (l) Liens in favor of customs and revenue authorities arising as a matter of law to
secure the payment of customs duties in connection with the importation of goods;

     (m) Liens arising out of consignment or similar arrangements for the sale by the
Company and its Subsidiaries of goods through third parties in the ordinary course of
business;

     (n) Liens deemed to exist in connection with Investments permitted by Section 10.7(b)
that constitute repurchase obligations;

     (o) any license of Intellectual Property granted by the Company or any of its
Subsidiaries in the ordinary course of business;

     (p) Liens created in the ordinary course of business in favor of banks or other
financial institutions over credit balances of any bank account held at such bank or
financial institution;

     (q) Liens on assets of a Foreign Subsidiary securing Indebtedness incurred pursuant to
Section 10.2(i)(B);

     (r) other Liens with respect to obligations that do not exceed $500,000 at any one time
outstanding.

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     Section 10.4. Fundamental Changes. Consummate any merger, consolidation or amalgamation, or
liquidate, wind up or dissolve itself (or suffer any liquidation or dissolution), or Dispose of all
or substantially all of its Property or business, except that:

     (a) (i) any Subsidiary may be merged, amalgamated, liquidated or consolidated with or
into, or all or substantially all of the Property or business may be transferred to, the
Company (provided that the Company shall be the continuing or surviving corporation)
or (ii) any Subsidiary may be merged, amalgamated, liquidated or consolidated with or into,
or all or substantially all of the Property or business may be transferred to, any
Subsidiary (provided that (x) if one of the parties to such merger, amalgamation or
consolidation is a Guarantor, such Guarantor shall be the continuing or surviving
corporation or (y) simultaneously with such transaction, the continuing or surviving
corporation shall become a Guarantor and the Company shall comply with Section 9.8 in
connection therewith);

     (b) Dispositions permitted by Section 10.5 may be consummated.

     Section 10.5. Dispositions of Property. Dispose of any of its owned Property (including,
without limitation, receivables) whether now owned or hereafter acquired, or, in the case of any
Subsidiary, issue or sell any shares of such Subsidiary’s Capital Stock to any Person, except:

     (a) the Disposition of surplus, obsolete or worn out property in the ordinary course of
business and the abandonment of Intellectual Property in the ordinary course of business;

     (b) (i) the sale of inventory and Dispositions of cash and Cash Equivalents, in each
case in the ordinary course of business, (ii) the licensing of Intellectual Property in the
ordinary course of business and (iii) the contemporaneous exchange, in the ordinary course
of business, of Property for Property of a like-kind to the extent that the Property
received in such exchange is of a value at least equivalent to the value of the Property
exchanged (provided that after giving effect to such exchange, the value of the
Property of the Obligors subject to perfected first priority Liens in favor of the
Collateral Agent under the Security Documents is not reduced);

     (c) the sale or issuance of any Subsidiary’s Capital Stock to any Obligor;

     (d) the Disposition of other assets having a fair market value not to exceed
$10,000,000 in the aggregate in any calendar year; provided that the requirements of
Section 8.1(c), are complied with in connection therewith;

     (e) any Recovery Event; provided that the requirements of Section 8.1(c) are
complied with in connection therewith;

     (f) the leasing, occupancy agreements or sub-leasing of Property that would not
materially interfere with the required use of such Property by the Company or its
Subsidiaries;

     (g) Dispositions of non-core assets that are acquired pursuant to a Permitted
Acquisition; provided that the requirements of Section 8.1(c), to the extent
applicable, are complied with in connection therewith;

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     (h) transfers of condemned property as a result of the exercise of “eminent domain” or
other similar policies to the respective Governmental Authority or agency that has condemned
same (whether by deed in lieu of condemnation or otherwise), and transfers of properties
that have been subject to a casualty to the respective insurer of such property as part of
an insurance settlement;

     (i) the transfer of Property (i) by any Obligor to any other Obligor, (ii) by any
Foreign Subsidiary to another Foreign Subsidiary, (iii) by any Foreign Subsidiary to an
Obligor and (iv) by any Obligor to a Foreign Subsidiary for not less than fair market value
(as reasonably determined by the Company; provided that for purposes of this subclause (iv),
the Company may, acting in good faith, determine that a transfer of equipment that has been
used in the business of an Obligor, for not less than the book value of such equipment, is a
transfer for not less than fair market value);

     (j) sale and leaseback transactions permitted by Section 10.10; provided that
the requirements of Section 8.1(c) are complied with in connection therewith;

     (k) Liens permitted by Section 10.3;

     (l) Restricted Payments permitted by Section 10.6;

     (m) Investments not prohibited by this Agreement;

     (n) the sale or discount without recourse of accounts receivable arising in the
ordinary course of business in connection with the compromise or collection thereof;

     (o) assignments or subleases for fair value of leasehold interests that are no longer
used or useful in the business the Company or any of its Subsidiaries;

     (p) any exclusive license to Pentair, Inc. of the Specified Intellectual Property; and

     (q) any Disposition for not less than fair market value (as reasonably determined by
the Company) if at least 75% of the consideration is received in the form of cash and the
Net Cash Proceeds of which at the consummation of such Disposition are entirely applied to
the repayment of the Notes of each Series then outstanding on a pro rata basis, pursuant to
Section 8.2.

     Section 10.6. Restricted Payments. Declare or pay any dividend on, or make any payment on
account of, or set apart assets for a sinking or other analogous fund for, the purchase,
redemption, defeasance, retirement or other acquisition of, any Capital Stock of the Company or any
Subsidiary, whether now or hereafter outstanding, or make any other distribution in respect
thereof, either directly or indirectly, whether in cash or property or in obligations of the
Company or any Subsidiary (collectively, “Restricted Payments”), except:

     (a) any Subsidiary may make Restricted Payments to any Obligor, and any Foreign
Subsidiary may make Restricted Payments to another Foreign Subsidiary;

20

 

     (b) Investments permitted by Section 10.7;

     (c) the Company may make Restricted Payments in the form of common equity of the
Company or preferred equity of the Company; and

     (d) so long as no Default or Event of Default shall have occurred and be continuing,
the Company or any other Obligor may purchase, redeem or otherwise acquire any Capital Stock
or options to purchase Capital Stock of the Company or Porex Equity Partners, L.P. (so long
as it owns Capital Stock of the Company) held by any former officer or employee of the
Company or any other Obligor issued pursuant to any management equity plan or stock option
plan or any other management or employee benefit plan or agreement; provided that any
Restricted Payments made pursuant to this clause (b) shall not exceed $500,000 in any fiscal
year.

     Section 10.7. Investments. Make any advance, loan, extension of credit (by way of guaranty or
otherwise) or capital contribution to, or purchase any Capital Stock, bonds, notes, debentures or
other debt securities of, or all or substantially all of the assets constituting an ongoing
business from, or make any other investment in, any other Person (all of the foregoing,
“Investments”), except:

     (a) extensions of trade credit in the ordinary course of business;

     (b) Investments in Cash Equivalents and Foreign Cash Equivalents;

     (c) Investments resulting from the incurrence of Indebtedness permitted by Sections
10.2(b) and (d);

     (d) (i) Investments (other than those relating to the incurrence of Indebtedness
permitted by Section 10.7(c)) by the Company or any of its Subsidiaries in the Company or
any Person that, prior to such Investment, is a Guarantor and (ii) Investments made by a
Foreign Subsidiary in another Foreign Subsidiary;

     (e) Permitted Acquisitions;

     (f) loans or advances to employees in an aggregate amount of up to $1,000,000
outstanding at any time;

     (g) Investments in existence immediately prior to the Closing;

     (h) Investments of the Company or any Subsidiary under Hedge Agreements permitted
hereunder;

     (i) Investments of any Person in existence at the time such Person becomes a
Subsidiary; provided that such Investment was not made in connection with or
anticipation of such Person becoming a Subsidiary;

     (j) provided that no Default or Event of Default is continuing or would result
therefrom, the Company may make Investments in an aggregate amount (determined as the

21

 

amount originally advanced, loaned or otherwise invested, less any returns on the respective
Investment not to exceed the original amount invested) not to exceed at any time outstanding
$1,000,000;

     (k) wholly owned Subsidiaries of the Company may be established or created, if the
Company and such Subsidiary comply with the provisions of Section 9.8(c) provided
that, in each case, to the extent such new Subsidiary is created solely for the purpose of
consummating a merger transaction pursuant to an acquisition permitted by Section 10.7(e),
and such new Subsidiary at no time holds any assets or liabilities other than its rights
under the relevant acquisition documents and any merger consideration contributed to it
contemporaneously with the closing of such merger transactions, such new Subsidiary shall
not be required to take the actions set forth in Section 9.8(c) until the respective
acquisition is consummated (at which time the surviving entity of the respective merger
transaction shall be required to so comply within ten Business Days);

     (l) Investments resulting from pledges and deposits referred to in Sections 10.3(c) and
(d);

     (m) the forgiveness or conversion to equity of any Indebtedness permitted by Section
10.2(b)(i) through (iv);

     (n) Investments (other than Permitted Acquisitions) made (i) by the Company with cash
proceeds of equity contributions (other than with Disqualified Capital Stock) from
shareholders of the Company to the Company, or (ii) by a Subsidiary of the Company with cash
proceeds of an Investment in such Subsidiary permitted by Section 10.7(n)(i), in each case
after the Closing;

     (o) Guarantee Obligations permitted by Section 10.2 and any payments made in respect of
such Guarantee Obligations;

     (p) any acquisition permitted by Section 10.4(a);

     (q) Investments in notes or securities of trade creditors or customers received in the
ordinary course of business upon foreclosure, or pursuant to any plan of reorganization or
liquidation or similar arrangement, upon the bankrupty or insolvency of such trade creditors
or customers or in settlement of delinquent obligations of, and other disputes with, trade
creditors or customers arising in the ordinary course of business;

     (r) accounts receivable if created or acquired in the ordinary course of business and
payable or dischargeable in accordance with customary terms; and

     (s) Investments made as a result of the receipt of non-Cash consideration from a
Disposition permitted under Section 10.5.

It is further understood and agreed that for purposes of determining the value of any Investment
outstanding for purposes of this Section 10.7, such amount shall deemed to be the amount of such

22

 

Investment when made, purchased or acquired less any returns on such Investment (not to exceed the
original amount invested).

     Section 10.8. Optional Payments. Make any optional or voluntary payment, prepayment,
repurchase or redemption of, or otherwise voluntarily or optionally defease the principal of or
interest on, or any other amount owing in respect of any Indebtedness that is subordinated in right
of payment to the Notes or the Note Guarantees.

     Section 10.9. Transactions with Affiliates. Enter into any transaction or series of
transactions, including, without limitation, any purchase, sale, lease or exchange of Property, the
rendering of any service or the payment of any management, advisory or similar fees, with any
Affiliate (other than any Obligor) unless such transaction or series of transactions is (a)
otherwise not prohibited under this Agreement and (b) upon fair and reasonable terms no less
favorable to the Company or such Subsidiary, as the case may be, than it would reasonably expect to
obtain in a comparable arm’s-length transaction with a Person that is not an Affiliate. For the
avoidance of doubt, this Section 10.9 shall not apply to (i) employment arrangements with, and
payments of compensation, expense reimbursement, indemnification or benefits to or for the benefit
of, current or former employees, officers or directors of the Company or any of its Subsidiaries,
(ii) Indebtedness permitted by Section 10.2(b), transactions permitted by Section 10.4(a),
Restricted Payments permitted by Section 10.6(a), (c) or (d), or Investments permitted by Section
10.7(d) or (f), (iii) payments under the Management Services Agreement as in effect at the Closing,
not to exceed $1,000,000 during any annual period beginning on the date of the Closing or any
anniversary thereof plus reasonable out-of-pocket expenses, (iv) the provision of management
services by the Company or any Subsidiary to any Subsidiary of the Company in the ordinary course
of business, (v) transfers of the non-exclusive license to a Subsidiary to use Intellectual
Property in the ordinary course of business and (vi) transactions in existence immediately before
the Closing.

     Section 10.10. Sales and Leasebacks. Enter into any arrangement with any Person providing for
the leasing by the Company or any Subsidiary of real or personal property which is to be sold or
transferred by the Company or such Subsidiary (a) to such Person or (b) to any other Person to whom
funds have been or are to be advanced by such Person on the security of such property or rental
obligations of the Company or such Subsidiary, except for (i) sales or transfers that do not exceed
$1,000,000 in the aggregate at any one time outstanding and (ii) sales or transfers by any Obligor
to any other Obligor. Notwithstanding anything to the contrary herein, no transaction or
arrangement shall be restricted under this Section 10.8 if, in connection with such transaction or
arrangement, any Indebtedness or Lien incurred is permitted to be incurred under Section 10.2 and
Section 10.3 or any Disposition of property is permitted under Section 10.5.

     Section 10.11. Negative Pledge Clauses. Enter into any agreement that prohibits or limits the
ability of the Company or any of its Subsidiaries to create, incur, assume or suffer to exist any
Lien upon any of its Property or revenues, whether now owned or hereafter acquired, to secure the
Obligations or, in the case of any Guarantor, its obligations under the Guarantee and Collateral
Agreement, other than (a) this Agreement and the other Note Documents, (b) any agreements governing
any purchase money Liens or Capital Lease Obligations, or any Permitted Refinancing Indebtedness
thereof, otherwise permitted hereby (in which case, any prohibition or limitation shall only be
effective against the assets financed thereby and the proceeds thereof), (c) Contractual
Obligations incurred in the ordinary course of business and on customary terms which limit Liens on
the assets that are subject of the applicable

23

 

Contractual Obligation, (d) prohibitions and limitations in effect immediately prior to the date hereof, (e)
customary provisions restricting the subletting or assignment of any lease governing a leasehold
interest or restrictions on assignment of any Intellectual Property or general intangibles, (f)
customary restrictions and conditions contained in any agreement relating to an asset sale
permitted by Section 10.4 or 10.5, and (g) any agreement in effect at the time any Person becomes a
Subsidiary, so long as such agreement was not entered into in contemplation of such Person becoming
a Subsidiary.

     Section 10.12. Clauses Restricting Subsidiary Distributions. Enter into any consensual
encumbrance or restriction on the ability of any Subsidiary to (a) make Restricted Payments in
respect of any Capital Stock of such Subsidiary held by, or pay any Indebtedness owed to, the
Company or any Subsidiary or (b) make Investments in the Company or any Subsidiary, except for such
encumbrances or restrictions existing under or by reason of (i) any restrictions existing under the
Note Documents, (ii) any restrictions with respect to such Subsidiary imposed pursuant to an
agreement that has been entered into in connection with the Disposition of all or substantially all
of the Capital Stock or assets of such Subsidiary, (iii) any restrictions regarding licenses or
sublicenses by the Company and its Subsidiaries of Intellectual Property in the ordinary course of
business (in which case such restriction shall relate only to such Intellectual Property), (iv)
Contractual Obligations incurred in the ordinary course of business which include customary
provisions restricting the assignment of any agreement relating thereto, (v) customary provisions
contained in joint venture agreements and other similar agreements applicable to joint ventures
entered into in the ordinary course of business, (vi) customary provisions restricting the
subletting or assignment of any lease governing a leasehold interest, (vii) customary restrictions
and conditions contained in any agreement relating to an asset sale permitted by Section 10.4 or
10.5, (viii) any agreement in effect at the time any Person becomes a Subsidiary, so long as such
agreement was not entered into in contemplation of such Person becoming a Subsidiary, (ix) such
restrictions in effect immediately prior to the Closing, (x) applicable law, (xi) restrictions on
cash or other deposits or net worth imposed by customers or landlords under contracts entered into
in the ordinary course of business, (xii) any restrictions on the transfer of any property subject
to a Lien permitted by Section 10.3; and (xiii) restrictions set forth in Indebtedness incurred
pursuant to Section 10.2(a) (provided that the restrictions in any Permitted Refinancing
Indebtedness incurred under Section 10.2(a) taken as a whole are no less favorable in any material
respect to the holders of the Notes than those restrictions that are then in effect under the
Indebtedness that is being refinanced, renewed, replaced or extended), Section 10.2(c) (provided
that (i) the restriction is not materially more disadvantageous to the holders of the Notes than is
customary in comparable financings, and any such restriction will not materially affect the
Company’s ability to make principal or interest payments on the Notes, and (ii) the restrictions in
any Permitted Refinancing Indebtedness incurred under Section 10.2(c) taken as a whole are no less
favorable in any material respect to the holders of the Notes than those restrictions that are then
in effect under the Indebtedness that is being refinanced, renewed, replaced or extended), Section
10.2(h) (provided that (i) the restriction is not applicable to any Person, or the property or
assets of any Person, other than the Person that becomes a Subsidiary as described in such Section
10.2(h), and (ii) the restrictions in any Permitted Refinancing Indebtedness incurred under Section
10.2(h) taken as a whole are no less favorable in any material respect ot the holders of the Notes
than those restrictions that are then in effect under the Indebtedness that is being refinanced,
renewed, replaced or extended) or Section 10.2(i) (provided that the restriction is not materially
more disadvantageous to the holders of the Notes than is customary in comparable financings, and
any such restriction will not materially affect the Company’s ability to make principal or interest
payments on the Notes).

24

 

     Section 10.13. Limitation on Hedge Agreements. Enter into any Hedge Agreement other than
Hedge Agreements entered into for a bona fide business purpose, and not for speculative purposes.

     Section 10.14. Limitation on Cash-Pay Preferred Stock. Issue or permit to exist any Cash-Pay
Preferred Stock.

     Section 10.15. Limitation on Activities of the Company. In the case of the Company only,
notwithstanding anything to the contrary in this Agreement or any other Note Document:

     (a) conduct, transact or otherwise engage in, or commit to conduct, transact or
otherwise engage in, any business or operations other than (i) ownership of the Capital
Stock of its Subsidiaries, (ii) activities incidental to the maintenance of its existence
and compliance with applicable laws and legal, tax and accounting matters related thereto
and activities relating to its employees, (iii) activities relating to the performance of
obligations under the Note Documents to which it is a party or expressly permitted
thereunder and (iv) the making of Restricted Payments to the extent permitted to be made
pursuant to Section 10.6;

     (b) own, lease, manage or otherwise operate any properties or assets other than the
ownership of shares of Capital Stock of its Subsidiaries; or

     (c) except as permitted under Section 10.04, consummate any merger, consolidation or
amalgamation, or liquidate, wind up or dissolve itself (or suffer any liquidation or
dissolution), or Dispose of all or substantially all of its Property or business.

     Section 10.16. Lines of Business. Enter into any business, either directly or through any of
its Subsidiaries, except for the Business.

Section 11. Events of Default.

     An “Event of Default” shall exist if any of the following conditions or events shall occur and
be continuing:

     (a) The Company shall fail to pay (i) any principal of any Note when due in accordance
with the terms thereof or (ii) any interest owed by it on any Note, or any other amount
payable by it hereunder or under any other Note Document, within two Business Days after any
such interest or other amount becomes due in accordance with the terms hereof or thereof; or

     (b) Any representation or warranty made or deemed made by any Obligor herein or in any
other Note Document on the Closing or that is contained in any certificate, document or
financial or other statement furnished by it at any time under or in connection with this
Agreement or any other Note Document, shall, in either case, prove to have been inaccurate
in any material respect on or as of the date made or deemed made or furnished; or

     (c) Any Obligor shall default in the observance or performance of any agreement
contained in Section 9.4(a)(i), Section 9.7(a) or Section 10 of this Agreement; or

25

 

     (d) Any Obligor shall default in the observance or performance of any other agreement
contained in this Agreement or any other Note Document (other than as provided in paragraphs
(a) through (c) of this Section), and such default shall continue unremedied for a period of
30 days after such Obligor receives from any holder of the Notes, notice of the existence of
such default; or

     (e) The Company or any of its Subsidiaries shall (i) default in making any payment of
any principal of any Indebtedness (excluding the Notes) on the scheduled or original due
date with respect thereto; or (ii) default in making any payment of any interest on any such
Indebtedness beyond the period of grace, if any, provided in the instrument or agreement
under which such Indebtedness was created; or (iii) default in the observance or performance
of any other agreement or condition relating to any such Indebtedness or contained in any
instrument or agreement evidencing, securing or relating thereto, or any other event of
default shall occur, the effect of which payment or other default or other event of default
described in clauses (i), (ii) or (iii) of this paragraph (e) is to cause, or to permit the
holder or beneficiary of such Indebtedness (or a trustee or agent on behalf of such holder
or beneficiary) to cause, with the giving of notice if required, such Indebtedness to become
due prior to its stated maturity or to become subject to a mandatory offer to purchase by
the obligor thereunder; provided that (A) a default, event or condition described in
this paragraph shall not at any time constitute an Event of Default unless, at such time,
one or more defaults or events of default of the type described in this paragraph shall have
occurred and be continuing with respect to Indebtedness the outstanding principal amount of
which exceeds in the aggregate $2,500,000 and (B) this paragraph (e) shall not apply to (I)
secured Indebtedness that becomes due as a result of the sale, transfer, destruction or
other disposition of the Property or assets securing such Indebtedness if such sale,
transfer, destruction or other disposition is not prohibited hereunder or (II) any Guarantee
Obligations except to the extent such Guarantee Obligations shall become due and payable by
any Obligor and remain unpaid after any applicable grace period or period permitted
following demand for the payment thereof; or

     (f) (i) The Company or any of its Material Subsidiaries shall commence any case,
proceeding or other action (A) under any existing or future law of any jurisdiction,
domestic or foreign, relating to bankruptcy, insolvency, reorganization or relief of
debtors, seeking to have an order for relief entered with respect to it, or seeking to
adjudicate it a bankrupt or insolvent, or seeking reorganization, arrangement, adjustment,
winding-up, liquidation, dissolution, composition or other relief with respect to it or its
debts, or (B) seeking appointment of a receiver, trustee, custodian, conservator or other
similar official for it or for all or any substantial part of its assets, or the Company or
any of its Subsidiaries (other than any Immaterial Subsidiary) shall make a general
assignment for the benefit of its creditors; or (ii) there shall be commenced against the
Company or any of its Subsidiaries (other than any Immaterial Subsidiary) any case,
proceeding or other action of a nature referred to in clause (i) above that (A) results in
the entry of an order for relief or any such adjudication or appointment or (B) remains
undismissed, undischarged or unbonded for a period of 60 days; or (iii) there shall be
commenced against the Company or any of its Subsidiaries (other than any Immaterial
Subsidiary) any case, proceeding
or other action seeking issuance of a warrant of attachment, execution, distraint or similar
process against substantially all of its assets that results in the entry of an order for
any such relief that shall not have been vacated, discharged, or stayed or bonded pending
appeal within 60 days from

26

 

the entry thereof; or (iv) the Company or any of its Subsidiaries
(other than any Immaterial Subsidiary) shall consent to or approve of, or acquiescence in,
any of the acts set forth in clause (i), (ii), or (iii) above; or (v) the Company or any of
its Subsidiaries (other than any Immaterial Subsidiary) shall generally not, or shall be
unable to, or shall admit in writing its inability to, pay its debts as they become due; or

     (g) (i) The Company or any of its Subsidiaries shall incur any liability in connection
with any non-exempt “prohibited transaction” (as defined in Section 406 of ERISA or Section
4975 of the Code) involving any Plan, (ii) a determination is made that a Single Employer Plan is in “at risk” status (within the
meaning of
  Section 303 of ERISA)  or any Lien in favor of the PBGC or a Single Employer Plan shall arise on the
assets of the Company or any of its Subsidiaries, (iii) a Reportable Event shall occur with
respect to, or proceedings shall commence to have a trustee appointed, or a trustee shall be
appointed, to administer or to terminate, any Single Employer Plan, which Reportable Event
or commencement of proceedings or appointment of a trustee is reasonably likely to result in
the termination of such Single Employer Plan for purposes of Title IV of ERISA, (iv) any
Single Employer Plan shall terminate for purposes of Title IV of ERISA, (v) the Company or
any of its Subsidiaries shall, or is reasonably likely to, incur any liability as a result
of a withdrawal from, or the Insolvency or Reorganization of, a Multiemployer Plan or (vi)
any other event or condition (other than one which could not reasonably be expected to
result in a violation of any applicable law or of the qualification requirements of the
Code) shall occur or exist with respect to a Plan or a Commonly Controlled Plan; and in each
case in clauses (i) through (vi) above, such event or condition, together with all other
such events or conditions, if any, could reasonably be expected to result in a direct
obligation of the Company or any of its Subsidiaries to pay money that could reasonably be
expected to have a Material Adverse Effect; or

     (h) One or more judgments or decrees shall be entered against the Company or any of its
Material Subsidiaries involving for the Company and any Material Subsidiaries taken as a
whole a liability (to the extent not paid or covered by insurance or effective indemnity) of
$1,000,000 or more, and all such judgments or decrees shall not have been vacated,
discharged, stayed or bonded pending appeal within 30 days from the entry thereof; or

     (i) Any of the Security Documents shall cease, for any reason (other than by reason of
the express release thereof pursuant to Section 22.10), to be in full force and effect in
any material respect, or any Obligor shall so assert in writing, or any Lien on any material
amount of Collateral created by any of the Security Documents shall cease in any material
respect to be enforceable and of the same effect and priority purported to be created
thereby; or

     (j) (i) the Company shall cease to own, directly or indirectly, 100% of the Capital
Stock of Porex; or (ii) the Sponsor Group shall cease to beneficially own at least 50.1% of
the total voting power of the Voting Stock of the Company.

Section 12. Remedies on Default, Etc.

     Section 12.1. Acceleration. (a) If an Event of Default described in Section 11(f) has
occurred, all the Notes then outstanding shall automatically become immediately due and payable.

27

 

     (b) If any other Event of Default has occurred and is continuing, any holder or holders of
more than 50% in principal amount of the Notes at the time outstanding may at any time at its or
their option, by notice or notices to the Company, declare all the Notes then outstanding to be
immediately due and payable.

     (c) If any Event of Default described in Section 11(a) has occurred and is continuing in
respect of any Notes of a Series held by a holder, any such holder or holders of Notes at the time
outstanding affected by such Event of Default may at any time, at its or their option, by notice or
notices to the Company, declare all the Notes of such Series held by it or them to be immediately
due and payable.

     Upon any Notes becoming due and payable under this Section 12.1, whether automatically or by
declaration, such Notes will forthwith mature and the entire unpaid principal amount of such Notes,
plus all accrued and unpaid interest thereon (including, but not limited to, interest accrued
thereon at the Default Rate), shall all be immediately due and payable, in each and every case
without presentment, demand, protest or further notice, all of which are hereby waived.

     Section 12.2 Other Remedies. If any Event of Default has occurred and is continuing, and
irrespective of whether any Notes have become or have been declared immediately due and payable
under Section 12.1, the Required Holders may proceed to protect and enforce the rights of the
holders by an action at law, suit in equity or other appropriate proceeding, whether for the
specific performance of any agreement contained herein or in any Note, or for an injunction against
a violation of any of the terms hereof or thereof, or in aid of the exercise of any power granted
hereby or thereby or by law or otherwise.

     Section 12.3. Rescission. At any time after any Notes have been declared due and payable
pursuant to Section 12.1(b) or (c), the holders of not less than 51% in principal amount of the
Notes then outstanding, by written notice to the Company, may rescind and annul any such
declaration and its consequences if (a) the Company has paid all overdue interest on the Notes, all
principal of, on any Notes that are due and payable and are unpaid other than by reason of such
declaration, and all interest on such overdue principal and (to the extent permitted by applicable
law) any overdue interest in respect of the Notes, at the Default Rate, (b) neither the Company nor
any other Person shall have paid any amounts which have become due solely by reason of such
declaration, (c) all Events of Default and Defaults, other than non-payment of amounts that have
become due solely by reason of such declaration, have been cured or have been waived pursuant to
Section 17, and (d) no judgment or decree has been entered for the payment of any monies due
pursuant hereto or to the Notes. No rescission and annulment under this Section 12.3 will extend
to or affect any subsequent Event of Default or Default or impair any right consequent thereon.

     Section 12.4. No Waivers or Election of Remedies, Expenses, Etc. No course of dealing and no
delay on the part of any holder of any Note in exercising any right, power or remedy shall operate
as a waiver thereof or otherwise prejudice such holder’s rights, powers or remedies. No right,
power or remedy conferred by this Agreement or by any Note upon any holder thereof shall be
exclusive of any other right, power or remedy referred to herein or therein or now or hereafter
available at law, in equity, by statute or otherwise.

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Section 13. Registration; Exchange; Substitution of Notes.

     Section 13.1. Registration of Notes. The Company shall keep at its principal executive office
a register for the registration and registration of transfers of Notes. The name and address of
each holder of one or more Notes, each transfer thereof and the name and address of each transferee
of one or more Notes shall be registered in such register. Prior to due presentment for
registration of transfer, the Person in whose name any Note shall be registered shall be deemed and
treated as the owner and holder thereof for all purposes hereof, and the Company shall not be
affected by any notice or knowledge to the contrary. The Company shall give to any holder of a
Note promptly upon request therefor, a complete and correct copy of the names and addresses of all
registered holders of Notes.

     Section 13.2. Transfer and Exchange of Notes. Upon surrender of any Note to the Company at
the address and to the attention of the designated officer (all as specified in Section 18(iii)),
for registration of transfer or exchange (and in the case of a surrender for registration of
transfer accompanied by a written instrument of transfer duly executed by the registered holder of
such Note or such holder’s attorney duly authorized in writing and accompanied by the relevant
name, address and other information for notices of each transferee of such Note or part thereof),
within ten Business Days thereafter, the Company shall execute and deliver, at the Company’s
expense (except as provided below), one or more new Notes (as requested by the holder thereof) in
exchange therefor, in an aggregate principal amount equal to the unpaid principal amount of the
surrendered Note. Each such new Note shall be payable to such Person as such holder may request
and shall be substantially in the form of Exhibit 1. Each such new Note shall be dated and bear
interest from the date to which interest shall have been paid on the surrendered Note or dated the
date of the surrendered Note if no interest shall have been paid thereon. The Company may require
payment of a sum sufficient to cover any stamp tax or governmental charge imposed in respect of any
such transfer of Notes. Notes shall not be transferred in denominations of less than $5,000,000,
provided that if necessary to enable the registration of transfer by a holder of its entire holding
of Notes, one Note may be in a denomination of less than $5,000,000. Any transferee, by its
acceptance of a Note registered in its name (or the name of its nominee), shall be deemed to have
made the representation set forth in Section 6.1.

     Section 13.3. Replacement of Notes. Upon receipt by the Company at the address and to the
attention of the designated officer (all as specified in Section 18(iii)) of notice from the holder
thereof of the loss, theft, destruction or mutilation of any Note, and

     (a) in the case of loss, theft or destruction, of such Person’s own unsecured agreement
of indemnity, or

     (b) in the case of mutilation, upon surrender and cancellation thereof,

within ten Business Days thereafter, the Company at its own expense shall execute and deliver, in
lieu thereof, a new Note, dated and bearing interest from the date to which interest shall have
been paid on such lost, stolen, destroyed or mutilated Note or dated the date of such lost, stolen,
destroyed or mutilated Note if no interest shall have been paid thereon.

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Section 14. Payments on Notes.

     Section 14.1. Place of Payment. Subject to Section 14.2, payments of principal and interest
becoming due and payable on the Notes shall be made in Los Angeles, California at the principal
office of the Company in such jurisdiction. The Company may at any time, by notice to each holder
of a Note, change the place of payment of the Notes so long as such place of payment shall be
either the principal office of the Company in such jurisdiction or the principal office of a bank
or trust company in such jurisdiction.

     Section 14.2. Home Office Payment. So long as the Purchaser shall be the holder of any Note,
and notwithstanding anything contained in Section 14.1 or in such Note to the contrary, the Company
will pay all sums becoming due on such Note for principal, and interest by the method and at the
address specified for such purpose below the Purchaser’s name in Schedule A, or by such other
method or at such other address as the Purchaser shall have from time to time specified to the
Company in writing for such purpose, without the presentation or surrender of such Note or the
making of any notation thereon, except that upon written request of the Company made at a
reasonable time before, concurrently with or reasonably promptly after payment or prepayment in
full of any Note, the Purchaser shall surrender such Note for cancellation, reasonably promptly
after any such request, to the Company at its principal executive office or at the place of payment
most recently designated by the Company pursuant to Section 14.1. Prior to any sale or other
disposition of any Note held by the Purchaser permitted under Section 13.2, the Purchaser will, at
its election, either endorse thereon the amount of principal paid thereon and the last date to
which interest has been paid thereon or surrender such Note to the Company in exchange for a new
Note or Notes pursuant to Section 13.2. The Company will afford the benefits of this Section 14.2
to any Person that is the direct or indirect transferee of any Note purchased by the Purchaser
under this Agreement and that has made the same agreement relating to such Note as the Purchaser
has made in this Section 14.2.

Section 15. Expenses, Etc.

     Section 15.1. Transaction Expenses. The Company will pay all reasonable, documented
out-of-pocket costs and expenses (including reasonable attorneys’ fees of special counsel and local
or other counsel) incurred by any holder of the Notes after the Closing in connection with (a) any
amendments, waivers or consents under or in respect of this Agreement or the Notes (whether or not
such amendment, waiver or consent becomes effective), (b) enforcing or defending (or determining
whether or how to enforce or defend) any rights under this Agreement or the Notes or in responding
to any subpoena or other legal process or informal investigative
demand issued in connection with this Agreement or the Notes, or by reason of being a holder of any
Note, and (c) the insolvency or bankruptcy of the Company or any Obligor or in connection with any
work-out or restructuring of the transactions contemplated hereby and by the Notes.

     Section 15.2. Survival. The obligations of the Company under this Section 15 will survive the
payment or transfer of any Note, the enforcement, amendment or waiver of any provision of this
Agreement or the Notes, and the termination of this Agreement.

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Section 16. Survival of Representations and Warranties; Entire Agreement.

     All representations and warranties contained herein shall survive the execution and delivery
of this Agreement and the Notes, the purchase or transfer by the Purchaser of any Note or portion
thereof or interest therein and the payment of any Note, and may be relied upon by any subsequent
holder of a Note, regardless of any investigation made at any time by or on behalf of the Purchaser
or any other holder of a Note. All statements contained in any certificate or other instrument
delivered by or on behalf of any Obligor pursuant to this Agreement shall be deemed
representations and warranties of such Obligors under this Agreement. Subject to the preceding
sentence, this Agreement and the Notes embody the entire agreement and understanding between the
Purchaser and the Obligors and supersede all prior agreements and understandings relating to the
subject matter hereof.

Section 17. Amendment and Waiver. 

     Section 17.1. Requirements. Any Note Document may be amended, and the observance of any term
of any Note Document may be waived (either retroactively or prospectively), with (and only with)
the written consent of the Company, the Collateral Agent and the Required Holders, except that (a)
no amendment or waiver of any of the provisions of Section 1, 2, 3, 4, or 6 hereof, or any defined
term (as it is used therein), will be effective as to the Purchaser unless consented to by the
Purchaser in writing, and (b) no such amendment or waiver may, without the written consent of the
holder of each Note at the time outstanding affected thereby, (i) subject to the provisions of
Section 12 relating to acceleration or rescission, reduce the amount or postpone the time of any
prepayment or payment of principal of, or reduce the rate or postpone the time of payment or change
the method of computation of interest on, the Notes, (ii) change the percentage of the principal
amount of the Notes the holders of which are required to consent to any such amendment or waiver,
(iii) amend any of Sections 8, 11(a), 11(b), 12, 17 or 20, (iv) release all or substantially all of
the Collateral, or (v) release all or substantially all of the Guarantors from their Note
Guarantees.

     Section 17.2. Delivery of Amendments.

     (a) Solicitation. The Company will provide each holder of the Notes (irrespective of the
amount of Notes then owned by it) with sufficient information, sufficiently far in advance of the
date a decision is required, to enable such holder to make an informed and considered decision with
respect to
any proposed amendment, waiver or consent in respect of any of the provisions hereof or of the
Notes. The Company will deliver executed or true and correct copies of each amendment, waiver or
consent effected pursuant to the provisions of this Section 17 to each holder of outstanding Notes
promptly following the date on which it is executed and delivered by, or receives the consent or
approval of, the requisite holders of Notes.

     (b) Payment. The Company will not directly or indirectly pay or cause to be paid any
remuneration, whether by way of supplemental or additional interest, fee or otherwise, or grant any
security or provide other credit support, to any holder of Notes as consideration for or as an
inducement to the entering into by any holder of Notes of any waiver or amendment of any of the
terms and provisions hereof unless such remuneration is concurrently paid, or security is
concurrently granted or other credit support concurrently provided, on the same terms, ratably to
each holder of Notes then outstanding that consented to such waiver or amendment.

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     Section 17.3. Binding Effect, etc. Any amendment or waiver consented to as provided in this
Section 17 applies equally to all holders of Notes and is binding upon them and upon each future
holder of any Note and upon the Company without regard to whether such Note has been marked to
indicate such amendment or waiver. No such amendment or waiver will extend to or affect any
obligation, covenant, agreement, Default or Event of Default not expressly amended or waived or
impair any right consequent thereon. No course of dealing between the Company and the holder of
any Note nor any delay in exercising any rights hereunder or under any Note shall operate as a
waiver of any rights of any holder of such Note. As used herein, the term “this Agreement” and
references thereto shall mean this Agreement as it may from time to time be amended or
supplemented.

     Section 17.4. Notes Held by Company, etc. Solely for the purpose of determining whether the
holders of the requisite percentage of the aggregate principal amount of Notes then outstanding
approved or consented to any amendment, waiver or consent to be given under this Agreement or the
Notes, or have directed the taking of any action provided herein or in the Notes to be taken upon
the direction of the holders of a specified percentage of the aggregate principal amount of Notes
then outstanding, Notes directly or indirectly owned by the Company or any of its Affiliates shall
be deemed not to be outstanding.

Section 18. Notices.

     All notices and communications provided for hereunder shall be in writing and sent (a) by
telecopy if the sender on the same day sends a confirming copy of such notice by a recognized
overnight delivery service (charges prepaid), or (b) by registered or certified mail with return
receipt requested (postage prepaid), or (c) by a recognized overnight delivery service (with
charges prepaid). Any such notice must be sent:

     (a) if to the Purchaser, to the Purchaser at the address specified for such
communications in Schedule A, or at such other address as the Purchaser or nominee shall
have specified to the Company in writing,

     (b) if to any other holder of any Note, to such holder at such address as such other
holder shall have specified to the Company in writing, or

     (c) if to any Obligor, to the Company at its address set forth at the beginning hereof
to the attention of Timothy J. Hart, Esq. (facsimile (310) 277-5591), or at such other
address as the Company shall have specified to the holder of each Note in writing.

Notices under this Section 18 will be deemed given only when actually received.

Section 19. [Reserved].

Section 20. Confidential Information.

     For the purposes of this Section 20, “Confidential Information” means information delivered to
the Purchaser by or on behalf of the Company or any Subsidiary after the Closing in connection with
the

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transactions contemplated by or otherwise pursuant to this Agreement, provided that such term
does not include information that (a) was publicly known prior to the time of such disclosure, (b)
subsequently becomes publicly known through no act or omission by the Purchaser or any person
acting on the Purchaser’s behalf, (c) otherwise becomes known to the Purchaser other than through
disclosure by the Company or any Subsidiary; provided that the source of such information was not
known by the Purchaser to be bound by a confidentiality agreement with, or other contractual, legal
or fiduciary obligation to, the Company or any other Person with respect to such information; and
provided further that such information does not consist of Porex Confidential Information (as
defined in the Stock Purchase Agreement) subject to the terms of Section 5.03 of the Stock Purchase
Agreement), or (d) constitutes financial statements delivered to the Purchaser under Section 7.1
that are otherwise publicly available. The Purchaser will maintain the confidentiality of such
Confidential Information, provided that the Purchaser may deliver or disclose Confidential
Information to (i) its directors, officers, employees, agents, attorneys, trustees and affiliates
(to the extent such disclosure reasonably relates to the administration of the investment
represented by its Notes and such Persons agree to hold confidential the Confidential Information
substantially in accordance with the terms of this Section 20), (ii) its financial advisors and
other professional advisors who agree to hold confidential the Confidential Information
substantially in accordance with the terms of this Section 20, (iii) any other holder of any Note,
(iv) any Person to which it sells or offers to sell such Note or any part thereof or any
participation therein (if such Person has agreed in writing prior to its receipt of such
Confidential Information to be bound by the provisions of this Section 20 and such Person has been
approved as a potential transferee by the Company), (v) any Person from which it offers to purchase
any security of the Company (if such Person has agreed in writing prior to its receipt of such
Confidential Information to be bound by the provisions of this Section 20), (vi) any federal or
state regulatory authority having jurisdiction over the Purchaser, or (vii) any other Person to
which such delivery or disclosure may be necessary (following notice to the Company and exercise of
all reasonably available means to avoid such disclosures) (w) to effect compliance with any law,
rule, regulation or order applicable to the Purchaser, (x) in response to any subpoena or other
legal process, or (y) in connection with any litigation to which the Purchaser is a party relating
to, in connection with or arising out of the Note Documents or (z) if an Event of Default has
occurred and is continuing, to the extent the Purchaser may reasonably determine such delivery and
disclosure to be necessary or appropriate in the enforcement or for the protection of the rights
and
remedies under the Purchaser’s Notes and this Agreement. Each holder of a Note, by its
acceptance of a Note, will be deemed to have agreed to be bound by and to be entitled to the
benefits of this Section 20 as though it were a party to this Agreement. On reasonable request by
the Company in connection with the delivery to any holder of a Note of information required to be
delivered to such holder under this Agreement or requested by such holder (other than a holder that
is a party to this Agreement or its nominee), such holder will enter into an agreement with the
Company embodying the provisions of this Section 20.

Section 21. [Reserved]. 

Section 22. Miscellaneous.

     Section 22.1. Successors and Assigns. All covenants and other agreements contained in this
Agreement by or on behalf of any of the parties hereto bind and inure to the benefit of their
respective successors and assigns (including, without limitation, any subsequent holder of a Note)
whether so expressed or not.

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     Section 22.2. Payments Due on Non-Business Days. Anything in this Agreement or the Notes to
the contrary notwithstanding (but without limiting the requirement in Section 8.4 that the notice
of any optional prepayment specify a Business Day as the date fixed for such prepayment), any
payment of principal of or interest on any Note that is due on a date other than a Business Day
shall be made on the next succeeding Business Day without including the additional days elapsed in
the computation of the interest payable on such next succeeding Business Day; provided that if the
maturity date of any Note is a date other than a Business Day, the payment otherwise due on such
maturity date shall be made on the next succeeding Business Day and shall include the additional
days elapsed in the computation of interest payable on such next succeeding Business Day.

     Section 22.3. Accounting Terms. All accounting terms used herein which are not expressly
defined in this Agreement have the meanings respectively given to them in accordance with GAAP.
Except as otherwise specifically provided herein, (i) all computations made pursuant to this
Agreement shall be made in accordance with GAAP, and (ii) all financial statements shall be
prepared in accordance with GAAP.

     Section 22.4. Severability. Any provision of this Agreement that is prohibited or
unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of
such prohibition or unenforceability without invalidating the remaining provisions hereof, and any
such prohibition or unenforceability in any jurisdiction shall (to the full extent permitted by
law) not invalidate or render unenforceable such provision in any other jurisdiction.

     Section 22.5. Construction, etc. Each covenant contained herein shall be construed (absent
express provision to the contrary) as being independent of each other covenant contained herein, so
that compliance with any one covenant shall not (absent such an express contrary provision) be
deemed to excuse compliance with any other covenant. Where any provision herein refers to action
to be taken by any Person, or which such Person is prohibited
from taking, such provision shall be applicable whether such action is taken directly or indirectly
by such Person.

     For the avoidance of doubt, all Schedules and Exhibits attached to this Agreement shall be
deemed to be a part hereof.

     Section 22.6. Counterparts. This Agreement may be executed in any number of counterparts,
each of which shall be an original but all of which together shall constitute one instrument. Each
counterpart may consist of a number of copies hereof, each signed by less than all, but together
signed by all, of the parties hereto.

     Section 22.7. Governing Law. This Agreement shall be construed and enforced in accordance
with, and the rights of the parties shall be governed by, the law of the State of New York
excluding choice-of-law principles of the law of such State that would permit the application of
the laws of a jurisdiction other than such State.

     Section 22.8. Jurisdiction and Process. (a) Each of the Obligors irrevocably submits to the
non-exclusive jurisdiction of any New York State or federal court sitting in the Borough of
Manhattan, The City of New York, over any suit, action or proceeding arising out of or relating to
this Agreement or the Notes. To the fullest extent permitted by applicable law, each of the
Obligors irrevocably waives and

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agrees not to assert, by way of motion, as a defense or otherwise,
any claim that it is not subject to the jurisdiction of any such court, any objection that it 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.

     (b) Each of the Obligors consents to process being served by or on behalf of any holder of
Notes in any suit, action or proceeding of the nature referred to in Section 22.8(a) by mailing a
copy thereof by registered or certified mail (or any substantially similar form of mail), postage
prepaid, return receipt requested, to it at its address specified in Section 18 or at such other
address of which such holder shall then have been notified pursuant to said Section. Each of the
Obligors agrees that such service upon receipt (i) shall be deemed in every respect effective
service of process upon it in any such suit, action or proceeding and (ii) shall, to the fullest
extent permitted by applicable law, be taken and held to be valid personal service upon and
personal delivery to it. Notices hereunder shall be conclusively presumed received as evidenced by
a delivery receipt furnished by the United States Postal Service or any reputable commercial
delivery service.

     (c) Nothing in this Section 22.8 shall affect the right of any holder of a Note to serve
process in any manner permitted by law, or limit any right that the holders of any of the Notes may
have to bring proceedings against the Obligors in the courts of any appropriate jurisdiction or to
enforce in any lawful manner a judgment obtained in one jurisdiction in any other jurisdiction.

     Section 22.9. No Right of Set-Off. For the avoidance of doubt, each Obligor agrees that its
Obligations are absolute and independent obligations, not subject to any defense based on any right
of set-off or counterclaim against or in respect of any amount owed or purported to be owed by the
Purchaser to such Obligor whether under the Stock Purchase
Agreement or otherwise. Each Obligor hereby waives any defense based on any such right of set-off
or counterclaim.

     Section 22.10. Governing Release of Collateral and Note Guarantees. Notwithstanding anything
to the contrary contained herein or in any other Note Document, upon request of the Company in
connection with any Disposition (to a Person other than the Company or a Subsidiary) of Property
permitted by the Note Documents, the Collateral Agent shall (without notice to, or vote or consent
of, any holder of the Notes), at the expense of the Company, take such actions as shall be required
to release its security interest in any Collateral being Disposed of in such Disposition, and to
release any Note Guarantee of any Person being Disposed of in such Disposition, to the extent
necessary to permit consummation of such Disposition in accordance with the Note Documents. Any
representation, warranty or covenant contained in any Note Document relating to any such Property
so Disposed of (other than Property Disposed of to the Company or any of its Subsidiaries) shall no
longer be deemed to be repeated once such Property is so Disposed of.

Section 23. Collateral Agent and Related Matters.

     Section 23.1. Appointment. Each holder of the Notes hereby irrevocably designates and
appoints the Collateral Agent as the agent of such holder under the Note Documents and each such
holder irrevocably authorizes the Collateral Agent, in such capacity, to take such action on its
behalf under the provisions of the applicable Note Documents and to exercise such powers and
perform such duties as are expressly delegated to the Collateral Agent by the terms of the
applicable Note Documents, together with

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such other powers as are reasonably incidental thereto.
Notwithstanding any provision to the contrary elsewhere in this Agreement, the Collateral Agent
shall not have any duties or responsibilities, except those expressly set forth herein, or any
fiduciary relationship with any holder of the Notes, and no implied covenants, functions,
responsibilities, duties, obligations or liabilities shall be read into this Agreement or any other
Note Document or otherwise exist against the Collateral Agent.

     Section 23.2. Delegation of Duties. The Collateral Agent may execute any of its duties under
the applicable Note Documents by or through agents or attorneys-in-fact and shall be entitled to
advice of counsel concerning all matters pertaining to such duties. The Collateral Agent shall not
be responsible for the negligence or misconduct of any agents or attorneys in-fact selected by it
with reasonable care.

     Section 23.3. Exculpatory Provisions. Neither (a) the Purchaser, both in its individual
capacity and as Collateral Agent, and any other Person that may be the Collateral Agent hereunder
from time to time (each, a “Specified Person”) nor (b) any Specified Person’s officers, directors,
employees, agents, attorneys-in-fact or affiliates shall be (i) liable for any action lawfully
taken or omitted to be taken by it or such Person under or in connection with this Agreement or any
other Note Document (except to the extent that any of the foregoing are found by a final and
nonappealable decision of a court of competent jurisdiction to have resulted from its or such
Person’s own bad faith, gross negligence, or willful misconduct) or (ii) responsible in any manner
to any of the holders of the Notes for any recitals, statements, representations or warranties made
by any Obligor
or any officer thereof contained in this Agreement or any other Note Document or in any
certificate, report, statement or other document referred to or provided for in, or received by
such Specified Person under or in connection with, this Agreement or any other Note Document or for
the value, validity, effectiveness, genuineness, enforceability or sufficiency of this Agreement or
any other Note Document or for any failure of any Obligor a party thereto to perform its
obligations hereunder or thereunder. No Specified Person shall be under any obligation to any
holder of the Notes to ascertain or to inquire as to the observance or performance of any of the
agreements contained in, or conditions of, this Agreement or any other Note Document, or to inspect
the properties, books or records of any Obligor.

     Section 23.4 Reliance by the Collateral Agent. The Collateral Agent shall be entitled to
rely, and shall be fully protected in relying, upon any instrument, writing, resolution, notice,
consent, certificate, affidavit, letter, telecopy, telex or teletype message, statement, order or
other document or conversation believed by it to be genuine and correct and to have been signed,
sent or made by the proper Person or Persons and upon advice and statements of legal counsel
(including counsel to the Company), independent accountants and other experts selected by the
Collateral Agent. The Collateral Agent shall be fully justified in failing or refusing to take any
action under the applicable Note Document unless it shall first receive such advice or concurrence
of the Required Holders (or, if so specified by this Agreement, all holders of the Notes) as it
deems appropriate or it shall first be indemnified to its satisfaction by the holders of the Notes
against any and all liability and expense that may be incurred by it by reason of taking or
continuing to take any such action. The Collateral Agent shall in all cases be fully protected in
acting, or in refraining from acting, under the applicable Note Documents in accordance with a
request of the Required Holders (or, if so specified by this Agreement, all holders of the Notes),
and such request and any action taken or failure to act pursuant thereto shall be binding upon all
the holders of the Notes and all future holders of the Notes.

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     Section 23.5 Notice of Default. The Collateral Agent shall not be deemed to have knowledge or
notice of the occurrence of any Default or Event of Default unless the Collateral Agent has
received notice from a holder of the Notes or the Company referring to this Agreement, describing
such Default or Event of Default and stating that such notice is a “notice of default”. The
Collateral Agent shall take such action with respect to such Default or Event of Default as shall
be reasonably directed by the Required Holders (or, if so specified by this Agreement, all holders
of the Notes); provided that unless and until the Collateral Agent shall have received such
directions, the Collateral Agent may (but shall not be obligated to) take such action, or refrain
from taking such action, with respect to such Default or Event of Default as it shall deem
advisable in the best interests of the holders of the Notes.

     Section 23.6 Non-Reliance. Each holder of the Notes expressly acknowledges that neither any
Specified Person nor any of its officers, directors, employees, agents, attorneys-in-fact or
affiliates have made any representations or warranties to it and that no act by such Specified
Person hereafter taken, including any review of the affairs of a Obligor or any affiliate of an
Obligor, shall be deemed to constitute any representation or warranty by such Specified Person to
any holder of the Notes. Each holder of the Notes represents to each Specified Person that it has,
independently and without reliance upon such Specified Person, and based on such documents and
information as it has deemed appropriate, made its own appraisal of and investigation into the
business, operations, property, financial and other condition and creditworthiness of the Obligors
and their affiliates and made its own decision to hold the Notes issued hereunder and enter into
this Agreement. Each holder
of the Notes also represents that it will, independently and without reliance upon any Specified
Person, and based on such documents and information as it shall deem appropriate at the time,
continue to make its own credit analysis, appraisals and decisions in taking or not taking action
under the applicable Note Documents, and to make such investigation as it deems necessary to inform
itself as to the business, operations, property, financial and other condition and creditworthiness
of the Obligors and their affiliates. Except for notices, reports and other documents expressly
required to be furnished to the holders of the Notes by the Collateral Agent hereunder, no
Specified Person shall have any duty or responsibility to provide any holder of the Notes with any
credit or other information concerning the business, operations, property, condition (financial or
otherwise), prospects or creditworthiness of any Obligor or any affiliate of a Obligor that may
come into the possession of such Specified Person or any of its officers, directors, employees,
agents, attorneys-in-fact or affiliates.

     Section 23.7 Indemnification. The holders of the Notes agree to indemnify the Collateral
Agent in its capacity as such (to the extent not reimbursed by the Obligors and without limiting
the obligation of the Obligors to do so), ratably according to the aggregate principal amounts of
the Notes held by them on the date on which indemnification is sought under this Section (or, if
indemnification is sought after the date upon which the Notes shall have been paid in full, ratably
in accordance with such aggregate principal amounts held immediately prior to such date), from and
against any and all liabilities, obligations, losses, damages, penalties, actions, judgments,
suits, costs, expenses or disbursements of any kind whatsoever that may at any time (whether before
or after the payment of the Notes) be imposed on, incurred by or asserted against the Collateral
Agent in any way relating to or arising out of this Agreement, any of the other Note Documents or
any documents contemplated by or referred to herein or therein or the transactions contemplated
hereby or thereby or any action taken or omitted by the Collateral Agent under or in connection
with any of the foregoing; provided that no holder of the Notes shall be liable for the
payment of any portion of such liabilities, obligations, losses, damages, penalties, actions,
judgments, suits, costs, expenses or disbursements that are found by a final and nonappealable
decision of

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a court of competent jurisdiction to have resulted from such Agent’s bad faith, gross
negligence or willful misconduct. The agreements in this Section shall survive the payment of the
Notes and all other amounts payable hereunder.

     Section 23.8 Collateral Agent in Its Individual Capacity. The Collateral Agent and its
affiliates may make loans to and generally engage in any kind of business with any Obligor as
though the Collateral Agent were not the Collateral Agent. With respect to any Notes held by it,
the Collateral Agent shall have the same rights and powers under the applicable Note Documents as
any holder of the Notes and may exercise the same as though it were not the Collateral Agent, and
the terms “holder,” “holders” and “Purchaser” shall include the Collateral Agent in its individual
capacity.

     Section 23.9 Successor Agents. The Collateral Agent may resign upon 10 days’ notice to the
Company and the holders of the Notes effective upon appointment of a successor Agent. Upon receipt
of any such notice of resignation, the Company shall appoint a successor agent for the holders of
the Notes, which successor agent shall (i) if the resigning Collateral Agent is SNTC Holding, Inc.,
be subject to approval by SNTC Holding, Inc. (which approval shall not be unreasonably withheld or
delayed) and (ii) in all other cases, be subject to approval by the Required Holders (which
approval shall not be unreasonably withheld or delayed), whereupon such successor agent shall
succeed to the rights, powers and duties of such retiring Collateral Agent, and
the retiring Collateral Agent’s rights, powers and duties as Collateral Agent shall be terminated,
without any other or further act or deed on the part of such retiring Collateral Agent or any of
the parties to this Agreement or any holders of the Notes. If no successor Collateral Agent shall
have been so appointed and shall have accepted such appointment within 10 days after the retiring
Collateral Agent’s giving of notice of resignation, then the retiring Collateral Agent may, on
behalf of the holders of the Notes and with the consent of the Company (such consent not to be
unreasonably withheld or delayed), appoint a successor Collateral Agent, that shall be a bank that
has an office in New York, New York with a combined capital and surplus of at least $500,000,000.
After any retiring Collateral Agent’s resignation as Collateral Agent, the provisions of this
Section 23 shall inure to its benefit as to any actions taken or omitted to be taken by it while it
was Collateral Agent under this Agreement and the other Note Documents.

     Section 23.10 Authorization to Release Liens and Guarantees. The Collateral Agent is hereby
irrevocably authorized by each of the holders of the Notes to effect any release of Liens or Note
Guarantees contemplated by Section 22.10 without further action or consent by the holders of the
Notes.

Section 24. Waiver of Jury Trial.

          The parties hereto hereby waive trial by jury in any action brought on or with respect to this
Agreement, the Notes or any other document executed in connection herewith or therewith.

* * * * *

          If you are in agreement with the foregoing, please sign the form of agreement on a counterpart
of this Agreement and return it to the Obligors, whereupon this Agreement shall become a binding
agreement between you and the Obligors.

38

 

	 	 	 	 	 
	 	Very
truly yours,

Porex Holding Corporation

 	 
	 	By  	/s/ Timothy J. Hart
 	 
	 	 	Name:  	Timothy J. Hart 	 
	 	 	Title:  	Vice President, Secretary, and

General Counsel 	 
	 
	 	Porex Corporation

 	 
	 	By  	/s/ Victor L. Marrero
 	 
	 	 	Name:  	Victor L. Marrero 	 
	 	 	Title:  	Executive Vice President, Chief

Financial Officer and Secretary 	 
	 
	 	Porex Surgical, Inc.

 	 
	 	By  	/s/ Victor L. Marrero
 	 
	 	 	Name:  	Victor L. Marrero 	 
	 	 	Title:  	Vice President — Finance and Secretary 	 
	 

	 	 	 	 	 
	This Agreement is hereby

accepted and agreed to as

of the date thereof.

SNTC HOLDING, INC., 

in its individual capacity as Purchaser

 	 
	By  	/s/ Frank J. Failla, Jr.
 	 
	 	Name:  	Frank J. Failla, Jr. 	 
	 	Title:  	Assistant Treasurer 	 
	 
	SNTC HOLDING, INC., 

as Collateral Agent

 	 
	By  	/s/ Frank J. Failla, Jr.
 	 
	 	Name:  	Frank J. Failla, Jr. 	 
	 	Title:  	Assistant Treasurer 	 

39

 

	 	 	 	 	 

Information Relating to the Purchaser

(1) All payments by wire transfer of immediately available funds
to: [omitted]

with
sufficient information to identify the source and application of such funds.

(2) All notices of payments and written confirmations of such
wire transfers:

SNTC Holding, Inc.

c/o HLTH Corporation

River Drive Center 2

669 River Drive

Elmwood Park, New Jersey 07407-1371

Attention: General Counsel

Fax (201) 703-3443

(3) All other communications:

SNTC Holding, Inc.

c/o HLTH Corporation

River Drive Center 2

669 River Drive

Elmwood Park, New Jersey 07407-1371

Attention: General Counsel

Fax (201) 703-3443

Schedule A

(to Note Purchase Agreement)

 

 

Initial Guarantors

	 	 	 
	Name	 	Jurisdiction of Incorporation
	Porex Corporation

	 	Delaware
	Porex Surgical, Inc.

	 	Delaware

Schedule B

(to Note Purchase Agreement)

 

 

Defined Terms

     As used herein, the following terms have the respective meanings set forth below or set forth
in the Section hereof following such term:

     “Acquisition”: as defined in the definition of “Permitted Acquisition”.

     “Affiliate”: as to any Person, any other Person that, directly or indirectly, is in control
of, is controlled by, or is under common control with, such Person. For purposes of this
definition, “control” of a Person means the power, directly or indirectly to direct or cause the
direction of the management and policies of such Person, in either case whether by contract or
otherwise.

     “Agreement”: this Note Purchase Agreement, as amended, supplemented or otherwise modified
from time to time.

     “Asset Sale”: any Disposition of Property or series of related Dispositions of Property by
the Company or any Subsidiary (excluding (i) any such Disposition permitted by clause (a), (b),
(c), (f), (h), (i), (k), (l), (m), (n), (o) and (p) of Section 10.4) and (ii) any such Disposition
which is a Recovery Event) which yields Net Cash Proceeds to any Obligor (valued at the then
current principal amount thereof in the case of non-cash proceeds consisting of notes or other debt
securities and valued at fair market value in the case of other non-cash proceeds) in excess of
$1,000,000.

     “Board”: the Board of Governors of the Federal Reserve System of the United States (or any
successor).

     “Business”: the business and any services, activities or businesses incidental or directly
related or similar to any business or line of business engaged in by the Company or its
Subsidiaries as of the Closing or any business or business activity that is a reasonable extension,
development or expansion thereof or ancillary thereto as determined in good faith by the board of
directors of the Company.

     “Business Day”: a day other than a Saturday, Sunday or other day on which commercial banks in
New York City are authorized or required by law to close.

     “Capital Lease” means, at any time, a lease with respect to which the lessee is required
concurrently to recognize the acquisition of an asset and the incurrence of a liability in
accordance with GAAP.

     “Capital Lease Obligations”: as to any Person, the obligations of such Person to pay rent or
other amounts under any lease of (or other arrangement conveying the right to use) real or personal
property, or a combination thereof, which obligations are required to be classified and accounted
for as capital leases on a balance sheet of such Person under GAAP and, for the purposes of this
Agreement, the amount of such obligations at any time shall be the capitalized amount thereof at
such time determined in accordance with GAAP.

Schedule C

(to Note Purchase Agreement)

 

 

     “Capital Stock”: any and all shares, interests, participations or other equivalents (however
designated) of capital stock of a corporation, and any and all equivalent ownership interests in a
Person (other than a corporation).

     “Cash Equivalents”: (a) marketable direct obligations issued by, or unconditionally
guaranteed by, the United States government or issued by any agency thereof and backed by the full
faith and credit of the United States, in each case maturing within one year from the date of
acquisition; (b) certificates of deposit, time deposits, eurodollar time deposits or overnight bank
deposits having maturities of one year or less from the date of acquisition issued by any
commercial bank organized under the laws of the United States or any state thereof having combined
capital and surplus of not less than $500,000,000; (c) commercial paper of an issuer rated at least
A-2 by S&P or P-2 by Moody’s, or carrying an equivalent rating by a nationally recognized rating
agency if both of the two named rating agencies cease publishing ratings of commercial paper
issuers generally, and maturing within one year from the date of acquisition; (d) repurchase
obligations of any commercial bank satisfying the requirements of clause (b) of this definition,
having a term of not more than 30 days with respect to securities issued or fully guaranteed or
insured by the United States government; (e) securities with maturities of one year or less from
the date of acquisition issued or fully guaranteed by any state, commonwealth or territory of the
United States, by any political subdivision or taxing authority of any such state, commonwealth or
territory or by any foreign government, the securities of which state, commonwealth, territory,
political subdivision, taxing authority or foreign government (as the case may be) are rated at
least A by S&P or A by Moody’s; (f) securities with maturities of one year or less from the date of
acquisition backed by standby letters of credit issued by any commercial bank satisfying the
requirements of clause (b) of this definition; and (g) shares of money market mutual or similar
funds which invest exclusively in assets satisfying the requirements of any of clauses (a) through
(f) of this definition; or (h) money market funds that (i) purport to comply generally with the
criteria set forth in SEC Rule 2a-7 under the Investment Company Act of 1940, as amended, (ii) are
rated AAA by S&P or Aaa by Moody’s or carrying an equivalent rating by a nationally recognized
rating agency, and (iii) have portfolio assets of at least $5,000,000,000.

     “Cash-Pay Preferred Stock”: Preferred Stock (i) that requires, or would require, periodic
payment of cash dividends or (ii) that requires, or would require, the issuer thereof to make any
other payment (including in respect of any sinking fund or similar deposit) in cash under any
circumstances (whether as dividends, on account of the purchase, redemption, retirement,
acquisition, cancellation or termination of any such stock or otherwise) on any date prior to 91
days after the fourth anniversary of the Closing (other than (i) upon payment in full of the
Obligations (other than indemnification and other contingent obligations not yet due and owing) or
(ii) upon a change in control; provided that any payment required pursuant to this clause (ii)
shall not be made prior to the repayment in full of the Obligations).

     “Certificated Security”: as defined in the Guarantee and Collateral Agreement.

     “CFC”: a “controlled foreign corporation” within the meaning of Section 957 of the Internal
Revenue Code of 1986, as amended.

     “Closing” is defined in Section 3.

     “Code”: the Internal Revenue Code of 1986, as amended from time to time.

-2-

 

     “Collateral”: as defined in the Guarantee and Collateral Agreement.

     “Collateral Agent”: SNTC Holding, Inc., in its capacity as collateral agent for the Secured
Parties under the Security Documents and any of its successors and permitted assigns.

     “Commonly Controlled Entity”: an entity, whether or not incorporated, that is under common
control with the Company within the meaning of Section 4001 of ERISA.

     “Commonly Controlled Plan”: any plan within the meaning of Section 3(3) of ERISA which is
subject to Title IV of ERISA that is maintained by a Commonly Controlled Entity.

     “Company”: as defined in the preamble hereto.

     “Confidential Information”: as defined in Section 20.

     “Consolidated EBITDA”: of any Person for any period, Consolidated Net Income of such Person
and its Subsidiaries for such period plus, without duplication and to the extent reflected as a
charge in the statement of such Consolidated Net Income for such period, the sum of (a) income tax
(or any alternative tax in lieu thereof) expense (including state franchise and similar taxes), (b)
Consolidated Net Interest Expense of such Person and its Subsidiaries, amortization or writeoff of
debt discount and debt issuance costs and commissions, discounts and other fees and charges
associated with Indebtedness (including commitment and administrative fees and charges with respect
to the Facilities and the Second Lien Loans), (c) depreciation and amortization expense, (d)
amortization, impairment of intangibles and other non-cash charges (including, but not limited to,
goodwill) and organization costs, (e) any extraordinary, unusual or non-recurring expenses or
losses, and (f) any non cash charges, expenses or losses (including any impairment charges and the
impact of purchase accounting, including, but not limited to, the amortization of inventory
step-up) reducing Consolidated Net Income for such period (excluding any such charge that
represents an accrual or reserve for a cash expenditure for a future period), minus, to the extent
included in the statement of such Consolidated Net Income for such period, the sum of (a) any
extraordinary, unusual or non-recurring income or gains (including, whether or not otherwise
includable as a separate item in the statement of such Consolidated Net Income for such period,
gains on the sales of assets outside of the ordinary course of business) and (b) any non-cash items
increasing Consolidated Net Income for such Person for such period (excluding any items which
represent the reversal of any accrual of, or cash reserve for, anticipated cash charges made in any
prior period or which will result in the receipt of cash in a future period), all as determined on
a consolidated basis; provided that for purposes of calculating Consolidated EBITDA of a Person and
its Subsidiaries for any period, (A) the Consolidated EBITDA of any other Person acquired by such
Person or its Subsidiaries during such period shall be included on a pro forma basis for such
period (but assuming the consummation of such acquisition and the incurrence or assumption of any
Indebtedness in connection therewith occurred on the first day of such period) and (B) the
Consolidated EBITDA of any other Person Disposed of by such Person or its Subsidiaries during such
period shall be excluded for such period (assuming the consummation of such Disposition and the
repayment of any Indebtedness in connection therewith occurred on the first day of such period).

     “Consolidated Net Income”: of any Person for any period, the consolidated net income (or
loss) of such Person and its Subsidiaries for such period, determined on a consolidated basis in
accordance with

-3-

 

GAAP; provided that in calculating Consolidated Net Income of a Person and its consolidated
Subsidiaries for any period, there shall be excluded (a) the income (or deficit) of any other
Person accrued prior to the date it becomes a Subsidiary or is merged into or consolidated with
such Person or any of its Subsidiaries and (b) the income (or deficit) of any other Person (other
than a Subsidiary) in which such Person or any of its Subsidiaries has an ownership interest,
except to the extent that any such income is actually received by such Person or such Subsidiary in
the form of dividends or similar distributions (which dividends and distributions shall be included
in the calculation of Consolidated Net Income). Notwithstanding the foregoing, the initial and
ongoing effect of any after-tax non-cash gains or losses resulting from any amortization, write-up,
write-down or write-off of assets or liabilities (including intangible assets, goodwill, deferred
revenue, deferred marketing and deferred financing costs as a result of purchase accounting
adjustments) in connection with any future acquisition, disposition, merger, consolidation or
similar transaction or any other non-cash impairment charges incurred subsequent to the Closing
resulting from the application at SFAS Nos. 141, 142 or 144 (excluding any non-cash item to the
extent that it represents an accrual of or reserve for cash expenditures in any future period
except to the extent such item is subsequently reversed) shall be excluded from Consolidated Net
Income.

     “Consolidated Total Debt”: for any Person at any date, the aggregate principal amount of all
Funded Debt of such Person and its Subsidiaries at such date, in each case determined on a
consolidated basis in accordance with GAAP.

     “Consolidated Total Leverage Ratio”: as at the last day of any period of four consecutive
fiscal quarters of a Person, the ratio of (a) Consolidated Total Debt on such day to (b)
Consolidated EBITDA of such Person and its Subsidiaries for such period.

     “Contractual Obligation”: as to any Person, any provision of any security issued by such
Person or of any agreement, instrument or other undertaking to which such Person is a party or by
which it or any of its Property is bound.

     “Default”: any of the events specified in Section 11, whether or not any requirement for the
giving of notice, the lapse of time, or both, has been satisfied.

     “Default Rate” means that rate of interest that is 2% per annum above the rate of interest
stated in clause (a) of the first paragraph of the Notes following the uppercase legends on the
face thereof.

     “Disposition”: with respect to any Property, any sale, sale and leaseback, assignment,
conveyance, transfer or other effectively complete disposition thereof. The terms “Dispose” and
“Disposed of” shall have correlative meanings.

     “Disqualified Capital Stock”: Capital Stock that (a) requires the payment of any dividends
(other than dividends payable solely in shares of Qualified Capital Stock) prior to the date that
is 91 days after the fourth anniversary of the Closing, (b) matures or is mandatorily redeemable or
subject to mandatory repurchase or redemption or repurchase at the option of the holders thereof,
in each case in whole or in part and whether upon the occurrence of any event, pursuant to a
sinking fund obligation on a fixed date or otherwise (including as the result of a failure to
maintain or achieve any financial performance standards), prior to the date that is 91 days after
the fourth anniversary of the Closing (other than (i) upon payment in full of the Obligations
(other than indemnification and other contingent

-4-

 

obligations not yet due and owing) or (ii) upon a change in control; provided that any payment
required pursuant to this clause (ii) shall not be made prior to the repayment in full of the
Obligations) or (c) are convertible or exchangeable, automatically or at the option of any holder
thereof, into any Indebtedness, Capital Stock or other assets other than Qualified Capital Stock.

     “Dollars” and “$”: dollars in lawful currency of the United States.

     “Domestic Subsidiary”: any Subsidiary that is organized under the jurisdiction of the United
States, any state thereof or the District of Columbia.

     “ERISA”: the Employee Retirement Income Security Act of 1974, as amended from time to time.

     “Event of Default”: any of the events specified in Section 11; provided that any requirement
for the giving of notice, the lapse of time, or both, has been satisfied.

     “Excluded Taxes” means, with respect to any Person, (i) taxes imposed on or measured by such
Person’s overall net income (however denominated), and franchise taxes imposed on it (in lieu of
net income taxes), by the jurisdiction (or any political subdivision thereof) under the laws of
which such Person is organized or is deemed to be doing business (other than solely by reason of
the ownership of Notes and receipt of payments thereon) or in which its principal office is located
and (ii) any branch profits taxes imposed by the United States or any similar tax imposed by any
other jurisdiction in which such Person is located.

     “Foreign Subsidiary”: any Subsidiary that is organized under the laws of a jurisdiction other
than the United States or any state thereof or the District of Columbia; provided that any Domestic
Subsidiary directly or indirectly owned by a Foreign Subsidiary shall be deemed to be a Foreign
Subsidiary.

     “Funded Debt”: with respect to any Person, all Indebtedness of such Person of the types
described in clauses (a) through (f) and (h) of the definition of “Indebtedness”.

     “GAAP”: generally accepted accounting principles in the United States as in effect from time
to time.

     “Governmental Authority”: any nation or government, any state, province or other political
subdivision thereof and any governmental entity exercising executive, legislative, judicial,
regulatory or administrative functions of or pertaining to government and, as to any Lender, any
securities exchange and any self regulatory organization.

     “Guarantee and Collateral Agreement”: the Guarantee and Collateral Agreement to be executed
and delivered by the Obligors, substantially in the form of Exhibit 2, as the same may be amended,
supplemented or otherwise modified from time to time.

     “Guarantee Obligation”: as to any Person (the “guaranteeing person”), any obligation of the
guaranteeing person guaranteeing or by which such Person becomes contingently liable for any

-5-

 

Indebtedness, net worth, working capital earnings, leases, dividends or other distributions
upon the stock or equity interests (the “primary obligations”) of any other third Person (the
“primary obligor”) in any manner, whether directly or indirectly, including, without limitation,
any obligation of the guaranteeing person, whether or not contingent, (i) to purchase any such
primary obligation or any Property constituting direct or indirect security therefor, (ii) to
advance or supply funds (1) for the purchase or payment of any such primary obligation or (2) to
maintain working capital or equity capital of the primary obligor or otherwise to maintain the net
worth or solvency of the primary obligor, (iii) to purchase Property, securities or services
primarily for the purpose of assuring the owner of any such primary obligation of the ability of
the primary obligor to make payment of such primary obligation or (iv) otherwise to assure or hold
harmless the owner of any such primary obligation against loss in respect thereof; provided,
however, that the term Guarantee Obligation shall not include endorsements of instruments for
deposit or collection in the ordinary course of business and reasonable indemnity obligations in
effect on the Closing Date or entered into in connection with any acquisition or disposition of
assets or any Investment permitted under this Agreement. The amount of any Guarantee Obligation of
any guaranteeing Person shall be deemed to be such guaranteeing person’s maximum reasonably
anticipated liability in respect thereof as determined by such Person in good faith.

     “Guarantors”: the collective reference to each Subsidiary of the Company, from time to time,
other than any Foreign Subsidiary that is a CFC.

     “Hedge Agreements”: all interest rate swaps, caps, collar agreements, currency swaps or
similar arrangements entered into by the Company or its Subsidiaries providing for protection
against fluctuations in interest rates or currency exchange rates or the exchange of nominal
interest obligations.

     “holder” means, with respect to any Note the Person in whose name such Note is registered in
the register maintained by the Company pursuant to Section 13.1.

     “Immaterial Subsidiary”: on any date, any Subsidiary of the Company that (i) had less than 5%
of consolidated assets and 5% of annual consolidated revenues of the Company and its Subsidiaries,
collectively, as reflected on the most recent financial statements delivered pursuant to Section
9.1 prior to such date and (ii) has been designated as such by the Company in a written notice
delivered to the holders of the Notes (other than any such Subsidiary as to which the Company has
revoked such designation by written notice to the holders of the Notes); provided that at no time
shall all Immaterial Subsidiaries so designated by the Company have in the aggregate consolidated
assets or annual consolidated revenues (as reflected on the most recent financial statements
delivered pursuant to Section 9.1 prior to such time) in excess of 5% of consolidated assets or
annual consolidated revenues, respectively, of the Company and its Subsidiaries, collectively.

     “Indebtedness”: of any Person at any date, without duplication, (a) all indebtedness of such
Person for borrowed money, (b) all obligations of such Person for the deferred purchase price of
Property or services (other than (i) trade payables, accrued expenses, current accounts and similar
obligations incurred in the ordinary course of such Person’s business and, (ii) earn-outs and other
contingent payments in respect of acquisitions except to the extent that the liability on account
of any such earn-out or contingent payment becomes a fixed obligation), (c) all obligations of such
Person evidenced by notes, bonds, debentures or other similar instruments, (d) all indebtedness
created or arising under any conditional sale or other title retention agreement with respect to
Property acquired by such Person (even

-6-

 

though the rights and remedies of the seller or lender under such agreement in the event of
default are limited to repossession or sale of such Property, in which case only the lesser of the
amount of such obligation and the fair market value of such Property shall constitute
Indebtedness), (e) all Capital Lease Obligations of such Person, (f) all obligations of such
Person, contingent or otherwise, as an account party or applicant under acceptance, letter of
credit or similar facilities, (g) all obligations of such Person in respect of Disqualified Capital
Stock, except for agreements with directors, officers and employees to acquire such Capital Stock
upon the death or termination of employment of such director, officer or employee, and (h) all
Guarantee Obligations of such Person in respect of obligations of the kind referred to in clauses
(a) through (g) above. Notwithstanding the foregoing, the term “Indebtedness” shall not include
Non-Recourse Debt.

     “Insolvency”: with respect to any Multiemployer Plan, the condition that such Plan is
insolvent within the meaning of Section 4245 of ERISA.

     “Instrument”: as defined in the Guarantee and Collateral Agreement.

     “Intellectual Property”: the collective reference to all rights, priorities and privileges
relating to intellectual property, whether arising under United States, multinational or foreign
laws or otherwise, including, without limitation, copyrights, domain names, patents, trademarks,
trade names, technology, know-how and processes, including the right to receive all proceeds and
damages therefrom.

     “Instrument”: as defined in Section 10.6.

     “Laws”: collectively, federal, state, local or foreign law, statute or ordinance, common law,
or any rule, regulation, judgment, order, writ, injunction, decree, arbitration award, agency
requirement, license or permit of any Governmental Authority.

     “Lien”: any mortgage, pledge, hypothecation, collateral assignment, encumbrance, lien
(statutory or other), charge or other security interest or any other security agreement of any kind
or nature whatsoever (including any conditional sale or other title retention agreement and any
capital lease having substantially the same economic effect as any of the foregoing).

     “Management Services Agreement”: that certain Management Services Agreement, by and among the
Company, Porex and Aurora Management Partners LLC, dated October 19, 2009.

     “Material” means material in relation to the business, operations, financial condition or
properties of the Company and its Subsidiaries taken as a whole.

     “Material Adverse Effect”: a material adverse effect on (a) the business, operations property
or financial condition of the Company and its Subsidiaries, taken as a whole, or (b) the validity
or enforceability of the Note Documents or the material rights and remedies of the holders of the
Notes thereunder, in each case, taken as a whole.

     “Material Subsidiary”: any Subsidiary that is not an Immaterial Subsidiary.

-7-

 

     “Moody’s”: Moody’s Investors Service, Inc. or any successor to the rating agency business
thereof.

     “Mortgage”: any mortgage, deed of trust, hypothec or other similar document made by any
Obligor in favor of, or for the benefit of, the Collateral Agent for the benefit of the Secured
Parties, in form and substance reasonably satisfactory to the Required Holders and the Company
(taking into account the law of the jurisdiction in which such mortgage, deed of trust, hypothec or
similar document is to be recorded), as the same may be amended, supplemented or otherwise modified
from time to time.

     “Multiemployer Plan”: a Plan that is a multiemployer plan as defined in Section 4001(a)(3) of
ERISA.

     “Net Cash Proceeds”: (a) in connection with any Asset Sale or any Recovery Event, the
proceeds thereof in the form of cash and Cash Equivalents (including any such proceeds received by
way of deferred payment of principal pursuant to a note or installment receivable or purchase price
adjustment receivable or otherwise, but only as and when received) of such Asset Sale or Recovery
Event received by any Obligor, net of attorneys’ fees, accountants’ fees, investment banking fees,
consulting fees, amounts (including premiums or penalties, if any) required to be applied to the
repayment of Indebtedness secured by a Lien expressly permitted hereunder on any asset which is the
subject of such Asset Sale or Recovery Event (other than any Lien pursuant to a Security Document)
and other reasonable fees and expenses (including legal fees and expenses) actually incurred by any
Obligor in connection therewith and net of taxes paid or reasonably estimated to be payable by any
Obligor as a result thereof (after taking into account any available tax credits or deductions and
any tax sharing arrangements) and any escrow or reserve for any indemnification payments (fixed or
contingent) attributable to seller’s indemnities and representations and warranties to purchaser in
respect of the applicable Asset Sale undertaken by the Company or any of its Subsidiaries in
connection with such Asset Sale (provided that upon release of any such escrow or reserve, the
amount released shall be considered Net Cash Proceeds) and (b) in connection with any incurrence of
Indebtedness by the Company, the cash proceeds received from such issuance or incurrence, net of
attorneys’ fees, investment banking fees, accountants’ fees, consulting fees, underwriting
discounts and commissions and other reasonable fees and expenses (including legal fees and
expenses) actually incurred in connection therewith.

     “Non-Guarantor Subsidiary”: any Subsidiary of the Company that is not a Guarantor.

     “Non-Recourse Debt”: Indebtedness (a) no default with respect to which would permit (upon
notice, lapse of time or both) any holder of any other Indebtedness of the Company or any of the
Subsidiaries to declare a default on such other Indebtedness or cause the payment thereof to be
accelerated or payable prior to its stated maturity, and (b) as to which the lenders or holders
thereof will not have any recourse to the capital stock or assets of the Company or any of the
Subsidiaries.

     “Notes” is defined in Section 1.

     “Note Documents”: the collective reference to this Agreement, the Security Documents and the
Notes and any amendment, waiver, supplement or other modification to any of the foregoing.

-8-

 

     “Note Guarantee”: the obligations of a Guarantor under the Guarantee and Collateral
Agreement.

     “Obligations”: the unpaid principal of and interest on (including, without limitation,
interest accruing after the maturity of the Notes and interest accruing after the filing of any
petition in bankruptcy, or the commencement of any insolvency, reorganization or like proceeding,
relating to the Company, whether or not a claim for post-filing or post-petition interest is
allowed in such proceeding) the Notes and all other obligations and liabilities of any Obligor to
the Collateral Agent or to any holder of the Notes, whether direct or indirect, absolute or
contingent, due or to become due, or now existing or hereafter incurred, which may arise under, out
of, or in connection with, this Agreement or any other Note Document, whether on account of
principal, interest, reimbursement obligations, fees, indemnities, costs, expenses (including,
without limitation, all fees, charges and disbursements of counsel to the Collateral Agent or any
holder of the Notes that are required to be paid by an Obligor pursuant hereto) or otherwise.

     “Obligors”: the Company and each Guarantor.

     “Officer’s Certificate” means a certificate of a Senior Financial Officer or of any other
officer of the Company whose responsibilities extend to the subject matter of such certificate.

     “Organizational Documents” means, (a) with respect to any corporation, the certificate or
articles of incorporation and the bylaws (or equivalent or comparable constitutive documents with
respect to any non-U.S. jurisdiction); (b) with respect to any limited liability company, the
certificate or articles of formation or organization and operating agreement; (c) with respect to
any partnership, joint venture, trust or other form of business entity, the partnership, joint
venture or other applicable agreement of formation or organization and any agreement, instrument,
filing or notice with respect thereto filed in connection with its formation or organization with
the applicable Governmental Authority in the jurisdiction of its formation or organization and, if
applicable, any certificate or articles of formation or organization of such entity, and (d) in
each case, all shareholder or other equity holder agreements, voting trusts and similar
arrangements to which such Person is a party or which is applicable to its equity interest and all
other arrangements relating to the control or management of such Person.

     “PBGC”: the Pension Benefit Guaranty Corporation established pursuant to Subtitle A of Title
IV of ERISA (or any successor).

     “Permitted Acquisition”: any acquisition of a 100% interest in the Capital Stock, or all or
substantially all of the assets, of any Person, or of all or substantially all of the assets
constituting a division, product line or business line of any Person (each, an “Acquisition”), if
such Acquisition complies with the following criteria:

     (a) no Default or Event of Default shall be in effect immediately prior or after giving effect
to such Acquisition;

     (b) prior to the consummation of such Acquisition (i) the holders of the Notes shall have
received, if available, the then current financial projections in respect of the Person, division,
product line or line of business acquired in such Acquisition for the one year period following the
consummation of such acquisition, (ii) the holders of the Notes shall have received, if requested
by them, the then current

-9-

 

drafts (which shall be consistent with the final drafts in all material respects) of the
documentation to be executed in connection with such Acquisition (with final copies of such
documentation to be delivered to the holders of the Notes promptly upon becoming available),
including all schedules and exhibits thereto and (iii) the holders of the Notes shall have received
notice of the closing date for such Acquisition; and

     (c) either (i) such Person shall have become a Guarantor, or a part of the Company or any
Guarantor, and the provisions of Section 9.8 shall have been complied with to the reasonable
satisfaction of the Required Holders or (ii) such Person shall have become a Non-Guarantor
Subsidiary; provided that the aggregate purchase price of all such Permitted Acquisitions of
Non-Guarantor Subsidiaries shall not exceed $7,500,000 at any time on or after the Closing.

     “Permitted Refinancing Indebtedness” means refinancings, renewals, replacements and extensions
of Indebtedness; provided that (i) the terms and conditions thereof are not materially less
favorable to the obligor thereon than the Indebtedness being refinanced, renewed, replaced or
extended, and the final maturity date thereof is later than or equal to that of the Indebtedness
being refinanced, renewed, replaced or extended, (ii) such Indebtedness shall not (x) increase the
outstanding principal amount or shorten the maturity thereof (other than by an amount not greater
than accrued interest, fees and expenses, including premium and defeasance costs, associated
therewith), (y) add any Subsidiary as a new obligor or new property of the Company or any
Subsidiary as security therefor or (z) result in a decreased average weighted life thereof during
the term of this Agreement and (iii) if the Indebtedness being refinanced, renewed, replaced or
extended is subordinated in right of payment to the Obligations, such Indebtedness has a final
maturity date later than the final maturity date of, and is subordinated in right of payment to the
Obligations on terms at least as favorable in all material respects to the holders as those
contained in the documentation governing the Indebtedness being refinanced, renewed, replaced, or
extended.

     “Person”: an individual, partnership, corporation, limited liability company, business trust,
joint stock company, trust, unincorporated association, joint venture, Governmental Authority or
other entity of whatever nature.

     “Plan”: at a relevant time, any employee benefit plan as defined in Section 3(3) of ERISA and
in respect of which the Company or any of its Subsidiaries is (or, if such plan were terminated at
such time, would under Section 4069 of ERISA be deemed to be) an “employer” as defined in Section
3(5) of ERISA.

     “Pledged Securities”: as defined in the Guarantee and Collateral Agreement.

     “Pledged Stock”: as defined in the Guarantee and Collateral Agreement.

     “Porex”: Porex Corporation, a Delaware corporation.

     “Preferred Stock”: with respect to any corporation, Capital Stock issued by such corporation
that is entitled to a preference or priority, in respect of dividends or distributions upon
liquidation, over some other class of Capital Stock issued by such corporation.

-10-

 

     “pro forma”: calculated on a pro forma basis in accordance with Regulation S-X under the
Securities Act of 1933, as amended.

     “Property”: any right or interest in or to property of any kind whatsoever, whether real,
personal or mixed and whether tangible or intangible, including, without limitation, Capital Stock.

     “Purchaser” is defined in the first paragraph of this Agreement.

     “Qualified Capital Stock”: any Capital Stock that is not Disqualified Capital Stock.

     “Recovery Event”: any settlement of or payment in respect of any property or casualty
insurance claim or any condemnation proceeding relating to any asset of the Company or any
Subsidiary, in an amount for each such event exceeding $1,000,000.

     “Reinvestment Deferred Amount”: with respect to any Reinvestment Event, the aggregate Net
Cash Proceeds received by the Company or any Subsidiary for its own account in connection therewith
that are not applied to prepay the Notes pursuant to Section 8.1(c) as a result of the delivery of
a Reinvestment Notice.

     “Reinvestment Event”: any Asset Sale or Recovery Event in respect of which an Obligor has
delivered a Reinvestment Notice.

     “Reinvestment Notice”: a written notice signed on behalf of the Company or any Subsidiary by
a Responsible Officer stating that the Company or such Subsidiary (directly or indirectly through a
Subsidiary) intends and expects to use all or a specified portion of the Net Cash Proceeds of an
Asset Sale or Recovery Event to acquire assets useful in its (or such Subsidiary’s) business.

     “Reinvestment Prepayment Amount”: with respect to any Reinvestment Event, the Reinvestment
Deferred Amount relating thereto less any amount contractually committed to be expended prior to
the relevant Reinvestment Prepayment Date, or actually expended prior to such date, in each case to
acquire assets useful in the business of the Company and its Subsidiaries.

     “Reinvestment Prepayment Date”: with respect to any Reinvestment Event, the earlier of (i)
the date occurring 12 months after such Reinvestment Event and (ii) with respect to any portion of
a Reinvestment Deferred Amount, the date on which an Obligor shall have determined not to acquire
assets useful in its or another Obligor’s business with such portion of such Reinvestment Deferred
Amount.

     “Release”: any release, spill, emission, leaking, dumping, injection, pouring, deposit,
disposal, discharge, dispersal, leaching or migration into or through the environment or within or
upon any building, structure or facility.

     “Reorganization”: with respect to any Multiemployer Plan, the condition that such plan is in
reorganization within the meaning of Section 4241 of ERISA.

-11-

 

     “Reportable Event”: any of the events set forth in Section 4043(c) of ERISA, other than those
events as to which the thirty day notice period is waived by the PBGC in accordance with the
regulations thereunder.

     “Required Holders” means, at any time, the holders of more than 50% in principal amount of the
Notes at the time outstanding (exclusive of Notes then owned by the Company or any of its
Affiliates).

     “Requirement of Law”: as to any Person, the certificate of incorporation and by-laws or other
organizational or governing documents of such Person, and any law, treaty, rule or regulation or
determination of an arbitrator or a court or other Governmental Authority, in each case applicable
to or binding upon such Person or any of its property or to which such Person or any of its
property is subject.

     “Responsible Officer”: the chief executive officer, president, chief financial officer (or
similar title), chief operating officer, controller or treasurer (or similar title) of the Company
or Porex, as applicable, or (with respect to Section 9.7) any Subsidiary and, with respect to
financial matters, the chief financial officer, controller or treasurer (or similar title) of the
Company or Porex, as applicable.

     “Restricted Payments” as defined in Section 10.5.

     “Revolving Credit Facilities” means one or more debt facilities or commercial paper facilities
or indentures, in each case with banks or other institutional lenders or investors providing for
revolving credit loans or letters of credit and any agreement or agreements governing Indebtedness
incurred to refinance, replace, restructure or refund such agreements in whole or in part from time
to time (whether with the original agent and lenders or other agents and lenders or otherwise).

     “S&P”: Standard & Poor’s Ratings Group, Inc., or any successor to the rating agency business
thereof.

     “SEC”: the Securities and Exchange Commission (or successors thereto or an analogous
Governmental Authority).

     “Secured Parties”: collectively, the holders from time to time of the Notes and the
Collateral Agent and, in each case, their respective successors and permitted assigns.

     “Security Documents”: the collective reference to the Guarantee and Collateral Agreement and
all other security documents hereafter delivered to the Collateral Agent purporting to grant a Lien
on any Property of any Obligor to secure the Obligations.

     “Securities Act” means the Securities Act of 1933, as amended from time to time, and the rules
and regulations promulgated thereunder from time to time in effect.

     “Single Employer Plan”: any Plan that is covered by Title IV of ERISA, but which is not a
Multiemployer Plan.

-12-

 

     “Solvent”: with respect to any Person, as of any date of determination, (a) the amount of the
“present fair saleable value” of the assets of such Person will, as of such date, exceed the amount
of all “liabilities of such Person, contingent or otherwise”, as of such date, as such quoted terms
are determined in accordance with applicable federal and state laws governing determinations of the
insolvency of debtors, (b) the present fair saleable value of the assets of such Person will, as of
such date, be greater than the amount that will be required to pay the liability of such Person on
its debts as such debts become absolute and matured, (c) such Person will not have, as of such
date, an unreasonably small amount of capital with which to conduct its business and (d) such
Person will be able to pay its debts as they mature. For purposes of this definition, (i) “debt”
means liability on a “claim”, (ii) “claim” means any (x) right to payment, whether or not such a
right is reduced to judgment, liquidated, unliquidated, fixed, contingent, matured, unmatured,
disputed, undisputed, legal, equitable, secured or unsecured or (y) right to an equitable remedy
for breach of performance if such breach gives rise to a right to payment, whether or not such
right to an equitable remedy is reduced to judgment, fixed, contingent, matured or unmatured,
disputed, undisputed, secured or unsecured and (iii) except as otherwise provided by applicable
law, the amount of “contingent liabilities” at any time shall be the amount thereof which, in light
of all the facts and circumstances existing at such time, can reasonably be expected to become
actual or matured liabilities.

     “Specified Intellectual Property” means the following patent applications and any patents that
issue therefrom: (i) the US provisional patent application filed by Pentair, Inc. on September 20,
2004 with the serial number 60/611,462; (ii) the US non-provisional application with the serial
number 11/229,144 (which subsequently issued as US Patent 7,513,993) filed by Pentair, Inc. on
September 16, 2005; and (iii) European patent application EP05108657 filed by Pentair, Inc. on
September 20, 2005.

     “Sponsor Group”: means (a) Aurora Equity Partners III L.P. and Aurora Overseas Equity
Partners III, L.P. (the “Limited Partnerships”), (b) Aurora Capital Partners III L.P. and Aurora
Overseas Capital Partners III, L.P. (the “General Partners”), (c) Aurora Advisors III LLC and
Aurora Overseas Advisors III, LDC (the “Ultimate General Partner”), (d) any limited partner of the
Limited Partnerships, provided that the shares owned by such limited partner are subject to Voting
Control, (e) any managing director, employee, Affiliate or member of the Advisory Board of Aurora
Management Partners LLC, provided that the shares owned by such Person are subject to Voting
Control, (f) any Person that is a shareholder of the Company on the Closing Date, provided that the
shares owned by such Person are subject to Voting Control, (g) any other investment fund holding
investments managed by Aurora Management Partners LLC and (h) with respect to any Person described
in clauses (d), (e) or (f), any other Person that (i) directly or indirectly, is in control of, is
controlled by, or is under common control with, such Person and (ii) is organized by such Person
primarily for the purpose of making equity or debt investments in one or more companies.

     “Stock Purchase Agreement”: means the Stock Purchase Agreement, dated as of September 17,
2009, between SNTC Holding, Inc., Aurora Equity Partners III L.P. and Aurora Overseas Equity
Partners III, L.P., as such agreement may be amended, supplemented or otherwise modified (including
in connection with an assignment to the Company pursuant to Section 11.05 thereof).

     “Subsidiary”: as to any Person, a corporation, partnership, limited liability company or
other entity of which shares of stock or other ownership interests having ordinary voting power
(other than stock or such other ownership interests having such power only by reason of the
happening of a

-13-

 

contingency) to elect a majority of the board of directors or other managers of such
corporation, partnership or other entity are at the time owned, or the management of which is
otherwise controlled, directly or indirectly through one or more intermediaries, or both, by such
Person. Unless otherwise qualified, all references to a “Subsidiary” or to “Subsidiaries” in this
Agreement shall refer to a direct or indirect Subsidiary or Subsidiaries of the Company.

     “United States”: the United States of America.

     “Voting Control”: with respect to any shares of the Company owned by a Person, that a Limited
Partnership, a General Partner or an Ultimate General Partner holds (i) a proxy entitled to vote
shares owned by such Person for election of directors of the Company or (ii) a voting agreement
that requires such Person to vote in a manner consistent with a Limited Partnership, a General
Partner or the Ultimate General Partner in the election of directors of the Company.

     “Voting Stock”: of a Person means the Capital Stock of any class or kind ordinarily having
the power to vote for the election of directors, managers or other voting members of the governing
body of such Person.

-14-

 

FORM OF OPINION

          The Company is a corporation duly organized and validly
existing under the laws of Delaware and has the requisite corporate
power to execute and deliver the Note Purchase Agreement, the
Guarantee and Collateral Agreement and the Notes (collectively, the
“Financing Documents”).

          Each of the Note Purchase Agreement and the Guarantee and
Collateral Agreement has been duly authorized, executed and
delivered by the Obligors and constitutes a legal, valid and binding
agreement of the Obligors, enforceable against the Obligors in
accordance with its terms.

          The Notes being purchased by you at the Closing have been duly
authorized, executed and delivered by the Company and constitute
legal, valid and binding obligations of the Company, enforceable
against the Company in accordance with their terms.

          No consent, approval or authorization of, or registration,
filing or declaration with, any Governmental Authority of (i) the
State of New York or the United States of America under any law or
regulation of the State of New York or the United States of America
applicable to any Obligor that, in our experience, is generally
applicable to transactions in the nature of those contemplated by
the Financing Documents or (ii) the State of Delaware under the
Delaware General Corporation Law, except in each case for filings
required for the perfection of Liens. Except as expressly set forth
in the fifth and seventh paragraphs of this schedule, we will
express no opinion regarding the Securities Act or any other federal
or state securities laws or regulations.

          Assuming the accuracy of the representations and warranties and
covenants of the Purchaser in the Note Purchase Agreement, it is not
necessary in connection with the offering, sale and delivery of the
Notes and the Note Guarantees purchased by you at the Closing, under
the circumstances contemplated by the Note Purchase Agreement, to
register said Notes or Note Guarantees under the Securities Act of
1933, as amended, or to qualify an indenture in respect of the Notes
under the Trust Indenture Act of 1939, as amended. No opinion is
given as to any subsequent transfer of the Notes.

Schedule 4.4

(to Note Purchase Agreement)

 

 

          The execution and delivery by each Obligor of the Financing
Documents to which it is a party, and performance of its obligations
thereunder do not and will not:

(i) violate (A) its certificate of incorporation or bylaws, (B)
based solely upon review of the orders, judgments or decrees
applicable to the Company prior to Closing identified in an
officers’ certificate executed in connection with the opinion (the
“Officers’ Certificate”) as constituting all such orders, judgments
or decrees binding on the Company (each, a “Governmental Order”),
any Governmental Order, or (C) any law or regulation of (i) the
State of New York or the United States of America applicable to such
Obligor that, in our experience, is generally applicable to
transactions in the nature of those contemplated by the Financing
Documents or (ii) the State of Delaware under the Delaware General
Corporation Law; or

(ii) based solely upon review of the documents applicable to the
Company prior to Closing identified in the Officers’ Certificate as
constituting all material contracts of the Company (each a “Material
Contract”), (A) result in a breach of or default under any Material
Contract or (B) result in or require the creation or imposition of
any lien or encumbrance upon any assets of the Company under any
Material Contract, other than Liens permitted by the Note Purchase
Agreement.

          The Company is not an “investment company” within the meaning
of the Investment Company Act of 1940, as amended.

          Each Obligor has granted a valid security interest (the
“Security Interest”) in favor of the Collateral Agent, for the
benefit of the secured parties, in the personal property and
fixtures collateral described in the Collateral and Guarantee
Agreement (the “UCC Collateral”) securing the performance of the
obligations purported to be secured thereby, to the extent a
security interest can be created therein under Article 9 of the
Uniform Commercial Code as enacted and in effect in the State of New
York (the “NYUCC”). Upon the filing of the financing statements on
Form UCC1 naming the Obligors as debtors, and the Collateral Agent
as secured party, with the Secretary of State of the State of
Delaware, the Security Interest in the UCC Collateral of each
Obligor will be perfected to the extent security interests therein
can be perfected by the filing of UCC1 financing statements under
Article 9 of the

-2-

 

Uniform Commercial Code as enacted and in effect in the State of
Delaware (the “DUCC”).

          Upon delivery to the Collateral Agent in the State of New York
of the Pledged Capital Stock delivered at Closing (the “Pledged
Shares”), the Security Interest of the Collateral Agent in the
Pledged Shares will be perfected and will be prior in right to all
other security interests therein created under Article 9 of the
NYUCC.

-3-

 

PROPERTIES

The real property owned by Porex Corporation at 500 Bohannon Road, Fairburn, Georgia

The real property owned by Porex Corporation at 4715 Roosevelt Highway, College Park, Georgia

Schedule 4.16

(to Note Purchase Agreement)

 

 

SUBORDINATION

SELECTED DEFINITIONS

“Notes”, “Note Documents” and “Obligor” have the meanings given thereto under the Note Purchase
agreement.

“Note Event of Default” means an “Event of Default” under the Note Purchase Agreement.

“Note Purchase Agreement” means the Note Purchase Agreement dated [ ] between SNTC Holding, Inc.,
the Guarantors party thereto, the Collateral Agent party thereto and the holders of the notes party
thereto, as the same may be amended from time to time.

“Senior Indebtedness” means all obligations of each Obligor now or hereafter existing under the
Note Documents (whether created directly or acquired by assignment or otherwise), whether for
principal, interest (including, without limitation, interest, as provided in the Note, accruing
after the filing of a petition initiating any proceeding referred to in Section ___(a) [Events of
Subordination], whether or not such interest accrues after the filing of such petition for purposes
of the Bankrupcty Code or is an allowed claim in such proceeding), fees, expenses or otherwise.

“Subordinated Debt” means all obligations of [Issuer] now or hereafter existing under [ ] (whether
created directly or acquired by assignment or otherwise), whether for principal, interest
(including, without limitation, interest accruing after the filing of a petition initiating any
proceeding referred to in Section ___(a) [Events of Subordination], whether or not such interest
accrues after the filing of such petition for purposes of the Bankruptcy Code or is an allowed
claim in such proceeding), fees, expenses or otherwise, including, without limitation, amounts
payable (i) in respect of any indemnity, (ii) in respect of any breach of a representation or a
warranty or (iii) to acquire [ ] on account of the redemption provisions of [ ].

* * *

ARTICLE __

SUBORDINATION

SECTION ___. Subordinated Debt Subordinate to Senior Indebtedness. [Issuer] agrees, and each
holder of any Subordinated Debt, by his acceptance thereof, also agrees, that the Subordinated Debt
is and shall be subordinate, to the extent and in the manner hereinafter set forth, to the prior
payment in full of all Senior Indebtedness.

SECTION ___. Events of Subordination. (a) In the event of any dissolution, winding up,
liquidation, arrangement, reorganization, adjustment, protection, relief or composition of [Issuer]
or its debts, whether voluntary or involuntary, in any bankruptcy, insolvency, arrangement,
reorganization, receivership, relief or other similar case or proceeding under any Federal or State
bankruptcy or similar law or upon an assignment for the benefit of creditors or any other
marshalling of the assets and liabilities of [Issuer] or otherwise, Senior Indebtedness shall first
be paid in full before the holders of any Subordinated Debt shall be entitled to receive any
payment of all or any of the Subordinated Debt, and any payment or distribution of any kind
(whether in

Schedule 10.2

(to Note Purchase Agreement)

 

 

cash, property or securities) that otherwise would be payable or deliverable upon or with respect
to the Subordinated Debt in any such case, proceeding, assignment, marshalling or otherwise
(including any payment that may be payable by reason of any other indebtedness of [Issuer] being
subordinated to payment of the Subordinated Debt) shall be paid or delivered directly to the
holders of the Notes for application (in the case of cash) to, or as collateral (in the case of non
cash property or securities) for, the payment or prepayment of the Senior Indebtedness until the
Senior Indebtedness shall have been paid in full.

(b) In the event that (i) any Note Event of Default described in Section 11(a) of the Note Purchase
Agreement shall have occurred and be continuing or (ii) any judicial proceeding shall be pending
with respect to any Note Event of Default, then no payment (including any payment that may be
payable by reason of any other indebtedness of [Issuer] being subordinated to payment of the
Subordinated Debt) shall be made by or on behalf of [Issuer] for or on account of any Subordinated
Debt, and neither any holder of or trustee for any Subordinated Debt shall take or receive from
[Issuer], directly or indirectly, in cash or other property or by set off or in any other manner,
including, without limitation, from or by way of collateral, payment of all or any of the
Subordinated Debt.

(c) In the event that any Note Event of Default (other than a Note Event of Default described in
Section 11(a) of the Note Purchase Agreement) or event which with the giving of notice or the lapse
of time, or both, would become a Note Event of Default shall have occurred and be continuing and
any holder of the Notes gives written notice thereof to the [trustee for] [holders of] the
Subordinated Debt, then no payment (including any payment that may be payable by reason of any
other indebtedness of [Issuer] being subordinated to payment of the Subordinated Debt) shall be
made by or on behalf of [Issuer] for or on account of any Subordinated Debt, and neither any
trustee for nor any holder of any Subordinated Debt shall take or receive from [Issuer], directly
or indirectly, in cash or other property or by set off or in any other manner, including, without
limitation, from or by way of collateral, payment of all or any of the Subordinated Debt, during a
period (the “Payment Blockage Period”) commencing on the date of receipt of such notice and ending
on the earlier of (i) the date such Note Event of Default or event shall have been cured or waived
in writing and (ii) the date 180 days from the date of receipt of such notice. Any number of such
notices may be given by the holders of the Notes; provided, however, that during any 360 day period
the aggregate number of days during which a Payment Blockage Period shall be in effect shall not
exceed 180 days and there shall be a period of at least 180 consecutive days in each 360 day period
when no Payment Blockage Period is in effect.

(d) In the event that any Subordinated Debt is declared due and payable before its stated maturity,
the holders of the Notes shall be entitled to receive payment in full of all amounts due or to
become due on or in respect of all Senior Indebtedness before the holders of the Subordinated Debt
are entitled to receive any payment (including any payment which may be payable by reason of the
payment of any other indebtedness of [Issuer] being subordinated to the payment of the Subordinated
Debt) by [Issuer] on account of the Subordinated Debt.

-2-

 

SECTION ___. Payment in Full. For the purposes of this [agreement], Senior Indebtedness shall not
be deemed to have been paid in full unless the holders of the Notes shall have received payment in
full of all Senior Indebtedness in cash.

SECTION ___. In Furtherance of Subordination.

(a) [If there is a trustee in respect of the Subordinated Debt:] [Each holder of any Subordinated
Debt by his acceptance thereof authorizes and directs the trustee hereunder on his behalf to take
such action as may be necessary or appropriate to effectuate, as between the holders of the Notes
and the holders of Subordinated Debt, the subordination as provided in this Article ___ and
appoints the trustee his attorney in fact for any and all such purposes.]

(b) If any proceeding referred to in Section ___(a) [Events of Subordination] above is commenced
by or against [Issuer],

(i) the holders of the Notes are hereby irrevocably authorized and empowered (in their own name or
in the name of the holders of the Subordinated Debt or otherwise), but shall have no obligation, to
demand, sue for, collect and receive every payment or distribution referred to in Section ___(a)
[Events of Subordination] and give acquittance therefor and to file claims and proofs of claim if
any holder of the Subordinated Debt fails to file a proof of claim in the form required in such
proceeding prior to 30 days before the expiration of the time to file such proof as they may deem
necessary or advisable for the exercise or enforcement of any of the rights or interests of the
holders of the Notes hereunder; and

(ii) the holders of the Subordinated Debt and any trustee therefor shall duly and promptly take
such action as the Required Holders (as defined under the Note Purchase Agreement) may request (A)
to collect the Subordinated Debt for the account of the holders of the Notes and to file
appropriate claims or proofs or claim in respect of the Subordinated Debt as permitted by clause
(i) above and (B) to collect and receive any and all payments or distributions which may be payable
or deliverable upon or with respect to the Subordinated Debt.

(c) All payments or distributions upon or with respect to the Subordinated Debt which are received
by any trustee for, or any holder of, any Subordinated Debt contrary to the provisions of this
Article shall be received in trust for the benefit of the holders of the Notes, shall be segregated
from other funds and property held by such trustee or such holder of Subordinated Debt and shall be
forthwith paid over to the holders of the Notes in the same form as so received (with any necessary
indorsement) to be applied (in the case of cash) to, or held as collateral (in the case of non cash
property or securities) for, the payment or prepayment of the Senior Indebtedness in accordance
with the terms of the Note Purchase Agreement.

(d) The holders of the Notes are hereby authorized to demand specific performance of the provisions
of this Article, whether or not [Issuer] shall have complied with any of the provisions hereof
applicable to it, at any time when any holder of or trustee for Subordinated Debt shall have failed
to comply with any of the provisions of this Article applicable to it. The holders of the
Subordinated Debt and any such trustee hereby irrevocably waive any defense based on the

-3-

 

adequacy of a remedy at law, which might be asserted as a bar to such remedy of specific
performance.

SECTION ___. Rights of Subrogation. No payment or distribution to the holders of the Notes
pursuant to the provisions of this Article shall entitle any holder of Subordinated Debt to
exercise any right of subrogation in respect thereof until the Senior Indebtedness shall have been
paid in full.

SECTION ___. Further Assurances. The holders of and any trustee for the Subordinated Debt, and
[Issuer] each will, at [Issuer]’s expense and at any time and from time to time, promptly execute
and deliver all further instruments and documents, and take all further action, that may be
necessary or desirable, or that the Required Holders may request, in order to protect any right or
interest granted or purported to be granted hereby or to enable any holder of the Notes to exercise
and enforce its rights and remedies hereunder.

SECTION ___. Agreements in Respect of Subordinated Debt. (a) No amendment, waiver or other
modification of this [agreement] may adversely affect the rights or interests hereunder of the the
holders of the Notes.

(b) The [trustee] [holders of the Subordinated Debt] shall promptly notify the holders of the Notes
of the occurrence of any default under the Subordinated Debt.

SECTION ___. Agreement by [Issuer]. [Issuer] agrees that it will not make any payment of any of
the Subordinated Debt, or take any other action, in contravention of the provisions of this
Article.

SECTION ___. Obligations Hereunder Not Affected. All rights and interests of the holders of the
Notes hereunder, and all agreements and obligations of the holders of and any trustee for the
Subordinated Debt, and [Issuer] under this Article, shall remain in full force and effect
irrespective of:

(i) any lack of validity or enforceability of the Note Documents or any other agreement or
instrument relating thereto;

(ii) any change in the time, manner or place of payment of, or in any other term of, all or any of
the Senior Indebtedness, or any other amendment or waiver of or any consent to any departure from
the Note Documents;

(iii) any taking, exchange, release or non perfection of any other collateral, or any taking,
release or amendment or waiver of or consent to departure from any guaranty, for all or any of the
Senior Indebtedness;

(iv) any manner of application of collateral, or proceeds thereof, to all or any of the Senior
Indebtedness, or any manner of sale or other disposition of any collateral for all or any of the
Senior Indebtedness or any other assets of [Issuer] or any of its subsidiaries;

-4-

 

(v) any change, restructuring or termination of the corporate structure or existence of [Issuer] or
any of its subsidiaries; or

(vi) any other circumstance which might otherwise constitute a defense available to, or a discharge
of, [Issuer] or a subordinated creditor.

The provisions of this Article ___ shall continue to be effective or be reinstated, as the case
may be, if at any time any payment of any of the Senior Indebtedness is rescinded or must otherwise
be returned by any holder of the Notes upon the insolvency, bankruptcy or reorganization of
[Issuer] or otherwise, all as though such payment had not been made.

SECTION ___. Waiver. The holders of and any trustee for the Subordinated Debt, and [Issuer] each
hereby waives promptness, diligence, notice of acceptance and any other notice with respect to any
of the Senior Indebtedness and this Article and any requirement that any holder of the Notes
protect, secure, perfect or insure any security interest or lien or any property subject thereto or
exhaust any right or take any action against [Issuer] or any other person or entity or any
collateral.

SECTION ___. No Waiver; Remedies. No failure on the part of any holder of the Notes to exercise,
and no delay in exercising, any right hereunder shall operate as a waiver thereof; nor shall any
single or partial exercise of any right hereunder preclude any other or further exercise thereof or
the exercise of any other right. The remedies herein provided are cumulative and not exclusive of
any remedies provided by law.

SECTION ___. Continuing Agreement; Assignments Under the Credit Agreement. The provisions of this
Article ___ constitute a continuing agreement and shall (i) remain in full force and effect until
the payment in full of the Senior Indebtedness, (ii) be binding upon the holders of and any trustee
for the Subordinated Debt, [Issuer] and their respective successors and assigns, and (iii) inure to
the benefit of, and be enforceable by, the holders of the Notes and their respective successors,
transferees and assigns. Without limiting the generality of the foregoing clause (iii), any holder
of the Notes may assign or otherwise transfer all or any portion of its rights and obligations
under the Note Documents (including, without limitation, all or any portion of any Note to be held
by it) to any other person or entity, and such other person or entity shall thereupon become vested
with all the rights in respect thereof granted to such holder of the Notes herein or
otherwise.

-5-

 

[Form of Note]

Porex Holding Corporation

8.75% Senior secured Note Due October 19, [___]

	 	 	 
	No. [___]

	 	[Date]
	$[_______]
	 	 

THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
ACT”), OR ANY STATE SECURITIES LAWS. NEITHER THIS SECURITY NOR ANY INTEREST OR PARTICIPATION
HEREIN MAY BE REOFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF
IN THE ABSENCE OF SUCH REGISTRATION  UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO,
REGISTRATION UNDER THE SECURITIES ACT.

THE SECURITIES REPRESENTED BY THIS INSTRUMENT MAY NOT BE SOLD OR OTHERWISE TRANSFERRED EXCEPT IN
COMPLIANCE WITH THE NOTE PURCHASE AGREEMENT REFERRED TO BELOW.

IN CONNECTION WITH ANY TRANSFER, THE HOLDER WILL DELIVER TO THE COMPANY SUCH OPINION OF COUNSEL AS
MAY BE REASONABLY REQUESTED TO CONFIRM THAT THE TRANSFER COMPLIES WITH THE FOREGOING RESTRICTIONS.

     For Value Received, the undersigned, Porex Holding Corporation (herein called the
“Company”), a corporation organized and existing under the laws of the State of Delaware, hereby
promises to pay on October 19, [___] to [_________], or registered assigns, the principal sum
of [____________] Dollars (or so much thereof as shall not have been repaid or
prepaid), with interest (computed on the basis of a 360-day year of twelve 30-day months) (a) on
the unpaid balance hereof at the rate of 8.75% per annum from the date hereof, payable quarterly,
on the 19th day of January, April, July and October in each year, commencing with the January 19,
April 19, July 19 or October 19 next succeeding the date hereof, until the principal hereof shall
have become due and payable, and (b) to the extent permitted by law, on any overdue payment of
interest, and during the continuance of an Event of Default, on the entire unpaid balance hereof
(provided that, except in the case of an Event of Default under Section 11.1(a) or (f), the
registered holder hereof has notified the Company that it wishes to receive interest at the Default
Rate), at a rate per annum from time to time equal to the Default Rate, payable quarterly as
aforesaid (or, at the option of the registered holder hereof, on demand).

     Payments of principal of and interest on this Note are to be made in lawful money of the
United States of America at New York, New York or at such other place as the Company shall have
designated by written notice to the holder of this Note as provided in the Note Purchase Agreement
referred to below.

Exhibit 1

(to Note Purchase Agreement)

 

 

     This Note is one of a series of Senior Notes (herein called the “Notes”) issued pursuant to
the Note Purchase Agreement, dated as of October 19, 2009 (as from time to time amended, the “Note
Purchase Agreement”), among the Obligors, the Purchaser and the Collateral Agent named therein and
is entitled to the benefits thereof. Each holder of this Note will be deemed, by its acceptance
hereof, to have (i) agreed to the confidentiality provisions set forth in Section 20 of the Note
Purchase Agreement and (ii) made the representation set forth in Section 6.1 of the Note Purchase
Agreement. Unless otherwise indicated, capitalized terms used in this Note shall have the
respective meanings ascribed to such terms in the Note Purchase Agreement.

     This Note is a registered Note and, subject to the restrictions as provided in the Note
Purchase Agreement, upon surrender of this Note for registration of transfer accompanied by a
written instrument of transfer duly executed, by the registered holder hereof or such holder’s
attorney duly authorized in writing, a new Note for a like principal amount will be issued to, and
registered in the name of, the transferee. Prior to due presentment for registration of transfer,
the Company may treat the person in whose name this Note is registered as the owner hereof for the
purpose of receiving payment and for all other purposes, and the Company will not be affected by
any notice to the contrary.

     The Company will make required prepayments of principal on the dates and in the amounts
specified in the Note Purchase Agreement. This Note is also subject to optional prepayment, in
whole or from time to time in part, at the times and on the terms specified in the Note Purchase
Agreement, but not otherwise.

     If an Event of Default occurs and is continuing, the principal of this Note may be declared or
otherwise become due and payable in the manner, at the price and with the effect provided in the
Note Purchase Agreement.

     For the avoidance of doubt, the Company agrees that its Obligations are absolute and
independent obligations, not subject to any defense based on any right of set-off or counterclaim
against or in respect of any amount owed or purported to be owed by the Purchaser to the Company
whether under the Stock Purchase Agreement or otherwise. The Company hereby waives any defense
based on any such right of set-off or counterclaim.

     This Note shall be construed and enforced in accordance with, and the rights of the Company
and the holder of this Note shall be governed by, the law of the State of New York excluding
choice-of-law principles of the law of such State that would permit the application of the laws of
a jurisdiction other than such State.

	 	 	 	 	 	 	 
	 	 	Porex Holding Corporation
	 
	 	 	 	 	 	 
	 

	 	By	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	[Title]	 	 

-2-

 

FORM OF GUARANTEE AND COLLATERAL AGREEMENT

Exhibit 2

(to Note Purchase Agreement)

 

 

 

GUARANTEE AND COLLATERAL AGREEMENT

made by

POREX HOLDING CORPORATION,

as the Company,

and the Guarantors party hereto

in favor of

SNTC HOLDING, INC.,

as Collateral Agent

Dated as of October 19, 2009

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	 	 	Page
	SECTION 1.
	 	DEFINED TERMS	 	1
	1.1
	 	Definitions	 	1
	1.2
	 	Other Definitional Provisions	 	5
	 
	 	 	 	 
	SECTION 2.
	 	GUARANTEE	 	5
	2.1
	 	Guarantee	 	5
	2.2
	 	Right of Contribution	 	6
	2.3
	 	No Subrogation	 	6
	2.4
	 	Amendments, etc. with respect to the Company Obligations	 	6
	2.5
	 	Guarantee Absolute and Unconditional	 	7
	2.6
	 	Reinstatement	 	7
	2.7
	 	Payments	 	7
	 
	 	 	 	 
	SECTION 3.
	 	GRANT OF SECURITY INTEREST	 	7
	3.1
	 	Grant of Security Interests	 	8
	 
	 	 	 	 
	SECTION 4.
	 	REPRESENTATIONS AND WARRANTIES	 	9
	4.1
	 	Representations in Note Purchase Agreement	 	9
	4.2
	 	[Reserved]	 	9
	4.3
	 	Names; Jurisdiction of Organization; Chief Executive Office	 	9
	4.4
	 	Pledged Securities	 	9
	4.5
	 	Intellectual Property	 	9
	4.6
	 	Certain Accounts	 	10
	4.7
	 	Equipment and Inventory	 	10
	 
	 	 	 	 
	SECTION 5.
	 	COVENANTS	 	10
	5.1
	 	Covenants in Note Purchase Agreement	 	10
	5.2
	 	Investment Property	 	10
	5.3
	 	Commercial Tort Claims	 	10
	5.4
	 	Intellectual Property	 	11
	5.5
	 	After-Acquired Intellectual Property	 	11
	5.6
	 	Deposit Accounts	 	11
	5.7
	 	Equipment and Inventory	 	12
	 
	 	 	 	 
	SECTION 6.
	 	REMEDIAL PROVISIONS	 	12
	6.1
	 	Certain Matters Relating to Receivables	 	12
	6.2
	 	Communications with Grantors; Grantors Remain Liable	 	12
	6.3
	 	Pledged Securities	 	13
	6.4
	 	Intellectual Property	 	13
	6.5
	 	Proceeds to be Turned Over To Collateral Agent	 	14
	6.6
	 	Application of Proceeds	 	14
	6.7
	 	Code and Other Remedies	 	15
	6.8
	 	Private Sales	 	15
	6.9
	 	Deficiency	 	15
	 
	 	 	 	 
	SECTION 7.
	 	THE COLLATERAL AGENT	 	16
	7.1
	 	Collateral Agent’s Appointment as Attorney-in-Fact, etc	 	16

i

 

	 	 	 	 	 
	 	 	 	 	Page
	7.2
	 	Duty of Collateral Agent	 	17
	7.3
	 	Execution of Financing Statements	 	17
	7.4
	 	Authority of Collateral Agent	 	17
	 
	 	 	 	 
	SECTION 8.
	 	MISCELLANEOUS	 	18
	8.1
	 	Amendments in Writing	 	18
	8.2
	 	Notices	 	18
	8.3
	 	No Waiver by Course of Conduct; Cumulative Remedies	 	18
	8.4
	 	[Reserved]	 	18
	8.5
	 	Successors and Assigns	 	18
	8.6
	 	Set-Off	 	19
	8.7
	 	Counterparts	 	19
	8.8
	 	Severability	 	19
	8.9
	 	Section Headings	 	19
	8.10
	 	Integration	 	19
	8.11
	 	GOVERNING LAW	 	19
	8.12
	 	Submission To Jurisdiction; Waivers	 	19
	8.13
	 	Acknowledgements	 	19
	8.14
	 	Additional Grantors	 	20
	8.15
	 	Releases	 	20
	8.16
	 	WAIVER OF JURY TRIAL	 	20
	 
	 	 	 	 
	SCHEDULES
	 	 	 
	 
	 	 	 	 
	Schedule 1
	 	Investment Property	 	 
	Schedule 2
	 	Legal Name, Jurisdictions of Organization and Chief Executive Offices	 	 
	Schedule 3
	 	Intellectual Property	 	 
	Schedule 4
	 	Deposit Accounts	 	 
	Schedule 5
	 	Location of Equipment and Inventory	 	 
	 
	 	 	 	 
	ANNEXES
	 	 	 	 
	 
	 	 	 	 
	Annex I      
	 	Assumption Agreement	 	 
	Annex II    
	 	Acknowledgement and Consent	 	 
	Annex III-1
	 	Form of Intellectual Property Security Agreement	 	 
	Annex III-2
	 	Form of Intellectual Property Security Agreement Supplement	 	 

ii

 

GUARANTEE AND COLLATERAL AGREEMENT

          GUARANTEE AND COLLATERAL AGREEMENT, dated as of October 19, 2009 made by POREX HOLDING
CORPORATION, a Delaware corporation (the “Company”), and each of the Guarantors party
hereto, in favor of SNTC HOLDING, INC., a Delaware corporation, as Collateral Agent (in such
capacity, the “Collateral Agent”) for the holders, from time to time (the
“Holders”), of the 8.75% Senior Secured Notes due 2010, 8.75% Senior Secured Notes due
2011, 8.75% Senior Secured Notes due 2012 and 8.75% Senior Secured Notes due 2013 (collectively,
the “Notes”) of the Company issued under the Note Purchase Agreement, dated the date
hereof, among the Company, the subsidiary guarantors party thereto, and SNTC Holding, Inc., a
Delaware corporation, as purchaser thereunder (in such capacity, the “Purchaser”) (as
amended, supplemented or otherwise modified from time to time, the “Note Purchase
Agreement”).

W I T N E S S E T H:

          WHEREAS, pursuant to the Note Purchase Agreement, the Purchaser has agreed to acquire the
Notes upon the terms and subject to the conditions set forth therein;

          WHEREAS, the Company is a member of an affiliated group of companies that includes each other
Grantor (as defined below);

          WHEREAS, the Company and the other Grantors are engaged in related businesses, and each
Grantor will derive substantial direct and indirect benefit from the issuance of the Notes under
the Note Purchase Agreement; and

          WHEREAS, it is a condition precedent to the obligation of the Purchaser to purchase the Notes
pursuant to the Note Purchase Agreement that the Grantors shall have executed and delivered this
Agreement to the Collateral Agent for the ratable benefit of the Collateral Agent and the other
Secured Parties;

          NOW, THEREFORE, in consideration of the premises and to induce the Collateral Agent and the
Purchaser to enter into the Note Purchase Agreement and to induce the Holders to acquire the Notes
thereunder, each Grantor hereby agrees with the Collateral Agent, for the ratable benefit of the
Secured Parties, as follows:

SECTION 1. DEFINED TERMS

     1.1 Definitions. (a) Unless otherwise defined herein, terms defined in the Note Purchase
Agreement and used herein shall have the meanings given to them in the Note Purchase Agreement, and
the following terms are used herein as defined in the UCC: “Accession”, “Account”,
“As-Extracted Collateral”, “Certificated Securities”, “Chattel Paper”,
“Commercial Tort Claim”, “Commodity Account”, “Commodity Contract”,
“Document”, “Electronic Chattel Paper”, “Equipment”, “Financial
Asset”, “Equipment”, “Fixture”, “General Intangible”, “Goods”,
“Instrument”, “Inventory”, “Letter-of-Credit Right”, “Securities
Account”, “Security”, “Security Certificate”, “Security Entitlement”,
“Tangible Chattel Paper” and “Uncertificated Securities”.

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

1

 

          “Agreement”: this Guarantee and Collateral Agreement, as the same may be amended,
supplemented or otherwise modified from time to time.

          “Company Obligations”: the collective reference to the unpaid principal of and
interest on the Notes and all other obligations and liabilities of the Company (including, without
limitation, interest accruing at the then applicable rate provided in the Notes after the maturity
of the Notes and interest accruing at the then applicable rate provided in the Note Purchase
Agreement after the filing of any petition in bankruptcy, or the commencement of any insolvency,
reorganization or like proceeding, relating to the Company, whether or not a claim for post-filing
or post-petition interest is allowed in such proceeding) to the Collateral Agent or any other
Secured Party, whether direct or indirect, absolute or contingent, due or to become due, or now
existing or hereafter incurred, in each case, which may arise under the Note Purchase Agreement,
this Agreement, the other Note Documents, or any other document made, delivered or given in
connection therewith, in each case whether on account of principal, interest, reimbursement
obligations, fees, indemnities, costs, expenses or otherwise (including, without limitation, all
fees and disbursements of counsel to the Collateral Agent or to the other Secured Parties that are
required to be paid by the Company pursuant to the terms of any of the foregoing agreements).

          “Collateral”: as defined in Section 3.1.

          “Collateral Account”: any collateral account established by the Collateral Agent as
provided in Section 6.1 or 6.6.

          “Copyright Licenses”: all written agreements naming any Grantor as licensor or
licensee (including, without limitation, those listed in Schedule 3), granting any right
under any Copyright, including, without limitation, the grant of rights to manufacture, distribute,
exploit and sell materials derived from any Copyright.

          “Copyrights”: (i) all copyrights arising under the laws of the United States, whether
registered or unregistered and whether published or unpublished (including, without limitation,
those listed in Schedule 3), all registrations and recordings thereof, and all applications
in connection therewith, including, without limitation, all registrations, recordings and
applications in the United States Copyright Office, and (ii) the right to obtain all renewals
thereof.

          “Deposit Account”: as defined in the Uniform Commercial Code of any applicable
jurisdiction and, in any event, including, without limitation, any demand, time, savings, passbook
or like account maintained with a depositary institution.

          “Excluded Equipment”: at any date any equipment of a Grantor which is subject to, or
secured by, a Capital Lease Obligation or purchase money security interest which is permitted under
the Note Purchase Agreement if and to the extent, and only to the extent, that the agreements
granting or governing such Capital Lease Obligation or purchase money security interest prohibit,
or require any consent or establish any other conditions for, an assignment thereof, or a grant of
a security interest therein, by a Grantor; provided that all proceeds paid or payable to any
Grantor from any sale, transfer or assignment or other voluntary or involuntary disposition of such
Equipment, all insurance proceeds received in respect of such Equipment and all rights to receive
such proceeds shall be included in the Collateral to the extent not otherwise required to be paid
to the holder of such Capital Lease Obligation or other purchase money security interest secured by
such Equipment.

          “Exempt Deposit Accounts”: (i) Deposit Accounts the balance of which consists
exclusively of (a) withheld income taxes and federal, state or local employment taxes in such
amounts as are required in the reasonable judgment of the Company to be paid to the Internal
Revenue Service or

2

 

state or local government agencies within the following two months with respect to employees
of any of the Obligors, and (b) amounts required to be paid over to an employee benefit plan
pursuant to applicable law on behalf of or for the benefit of employees of one or more Obligors,
(ii) all segregated Deposit Accounts constituting (and the balance of which consists solely of
funds set aside in connection with) tax accounts, payroll accounts and trust accounts, (iii)
Deposit Accounts which are “zero-balance” or similar disbursement accounts provided that funds are
not held in any such deposit account for more than a one-day period and (iv) each Deposit Account
in which the funds deposited therein do not exceed $50,000, provided that the aggregate principal
amount of funds deposited in all the Exempt Deposit Accounts described in this clause (iv) shall at
no time exceed $250,000.

          “Grantors”: the collective reference to each signatory hereto (other than the
Collateral Agent) together with any other entity that may become a party hereto as provided herein.

          “Guarantor Obligations”: with respect to any Guarantor, all obligations and
liabilities of such Guarantor which may arise under this Agreement (including, without limitation,
Section 2) or any other Note Document to which such Guarantor is a party, in each case whether on
account of guarantee obligations, reimbursement obligations, fees, indemnities, costs, expenses or
otherwise (including, without limitation, all fees and disbursements of counsel to the Collateral
Agent or to the other Secured Parties that are required to be paid by such Guarantor pursuant to
the terms of this Agreement or any other Note Document).

          “Guarantors”: the collective reference to the Subsidiaries of the Company that are as
of the date hereof, or may in the future become, a party hereto as provided herein.

          “Intellectual Property”: the collective reference to all rights, priorities and
privileges relating to intellectual property, whether arising under United States, multinational or
foreign laws or otherwise, now existing or hereafter adopted or acquired, including, without
limitation, the Copyrights, the Copyright Licenses, the Patents, the Patent Licenses, the
Trademarks, the Trademark Licenses, the Trade Secrets and the Trade Secret Licenses, and all rights
to sue at law or in equity for any infringement or other impairment thereof, including the right to
receive all proceeds and damages therefrom.

          “Intercompany Note”: any promissory note evidencing loans made by any Grantor to the
Company or any of its Subsidiaries.

          “Investment Property”: the collective reference to (i) all “investment property” as
such term is defined in Section 9-102(a)(49) of the UCC and (ii) whether or not constituting
“investment property” as so defined, all Pledged Securities.

          “Issuers”: the collective reference to each issuer of a Pledged Security.

          “Patent License”: all written agreements providing for the grant by or to any Grantor
of any right to manufacture, use or sell any invention covered in whole or in part by a Patent,
including, without limitation, any of the foregoing referred to in Schedule 3.

          “Patents”: (i) all letters patent of the United States, all reissues and extensions
thereof, and all goodwill associated therewith, including, without limitation, any of the foregoing
referred to in Schedule 3, (ii) all applications for letters patent of the United States,
any other country or any political subdivision thereof, and all continuations and continuations in
part thereof, including, without limitation, any of the foregoing referred to in Schedule
3, and (iii) all rights to obtain any reissues or extensions of the foregoing.

3

 

          “Pledged Notes”: all promissory notes listed on Schedule 1, all Intercompany
Notes at any time issued to any Grantor either (i) in excess of $1,000,000 or (ii) issued pursuant
to the requirements of Section 10.2(b) of the Note Purchase Agreement and all other promissory
notes issued to or held by any Grantor in excess of $1,000,000 (other than promissory notes issued
in connection with extensions of trade credit by any Grantor in the ordinary course of business).

          “Pledged Securities”: the collective reference to the Pledged Notes and the Pledged
Stock.

          “Pledged Stock”: the collective reference to (i) the shares of Capital Stock listed
on Schedule 1 and (ii) any other shares, stock certificates, options, interests or rights
of any nature whatsoever in respect of the Capital Stock of any Person that may be issued or
granted to, or held by, any Grantor while this Agreement is in effect; provided that Pledged Stock
shall not include (i) more than 65% of the Voting Stock of any Foreign Subsidiary that is a CFC
owned directly by a Grantor and (ii) any Capital Stock of any Subsidiary owned directly or
indirectly by a Foreign Subsidiary that is a CFC.

          “Proceeds”: all “proceeds” as such term is defined in Section 9-102(a)(64) of the UCC
and, in any event, shall include, without limitation, all dividends or other income from the
Investment Property, collections thereon or distributions or payments with respect thereto.

          “Receivable”: any right to payment for goods sold or leased or for services rendered,
whether or not such right is evidenced by an Instrument or Chattel Paper and whether or not it has
been earned by performance (including, without limitation, any Account).

          “Secured Parties”: the “Secured Parties” as defined in the Note Purchase Agreement.

          “Secured Obligations”: (i) in the case of the Company, its Company Obligations and
(ii) in the case of each Guarantor, its Guarantor Obligations.

          “Securities Act”: the Securities Act of 1933, as amended.

          “Trademark License”: all written agreements providing for the grant by or to any
Grantor of any right to use any Trademark, including, without limitation, any of the foregoing
referred to in Schedule 3.

          “Trademarks”: (i) all trademarks, trade names, corporate names, company names,
business names, domain names, fictitious business names, trade styles, service marks, logos and
other source or business identifiers, and all goodwill associated therewith, now existing or
hereafter adopted or acquired, all registrations and recordings thereof, and all applications in
connection therewith, whether in the United States Patent and Trademark Office or in any similar
office or agency of the United States, any State thereof, or otherwise, and all common-law rights
related thereto, including, without limitation, any registrations or applications for registrations
in any respect of the foregoing referred to in Schedule 3, and (ii) the right to obtain all
renewals thereof.

          “Trade Secret”: shall mean all trade secrets and any and all other confidential and
proprietary information, including know-how, inventions, processes, procedures, customer lists and
personally-identifiable information, business information, concepts, ideas, designs, research or
development information, techniques, technical information, specifications, methods, technical
data, discoveries, modifications and extensions, in each case, to the extent confidential and
proprietary and whether or not reduced to a writing or other tangible form, including, without
limitation any registrations or applications for registrations in any respect of the foregoing
referred to in Schedule 3.

4

 

          “Trade Secret License”: all written agreements providing for the grant by or to any
Grantor of any right under any Trade Secret, including, without limitation, any of the foregoing
referred to in Schedule 3.

          “UCC”: the Uniform Commercial Code from time to time in effect in the State of New
York; provided that, if perfection or the effect of perfection or non-perfection or the
priority of the security interest in any Collateral is governed by the Uniform Commercial Code as
in effect in a jurisdiction other than the Sate of New York, “UCC” means the Uniform Commercial
Code as in effect from time to time in such other jurisdiction for purposes of the provisions
hereof relating to such perfection, effect of perfection or non-perfection or priority.

          “Vehicles”: all cars, trucks, trailers, construction and earth moving equipment and
other vehicles covered by a certificate of title law of any state.

     1.2 Other Definitional Provisions. (a)The words “hereof,” “herein”, “hereto” and
“hereunder” and words of similar import when used in this Agreement shall refer to this Agreement
as a whole and not to any particular provision of this Agreement, and Section and Schedule
references are to this Agreement unless otherwise specified.

     (b)   The meanings given to terms defined herein shall be equally applicable to both the
singular and plural forms of such terms.

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

SECTION 2. GUARANTEE

     2.1 Guarantee. (a)   Each of the Guarantors hereby, jointly and severally,
unconditionally and irrevocably, guarantees to the Secured Parties the prompt and complete payment
and performance by the Company when due (whether at the stated maturity, by acceleration or
otherwise) of the Company Obligations.

     (b)   Anything herein or in any other Note Document to the contrary notwithstanding, the
maximum liability of each Guarantor hereunder and under the other Note Documents shall in no event
exceed the amount which can be guaranteed by such Guarantor under applicable federal and state laws
relating to the insolvency of debtors (after giving effect to the right of contribution established
in Section 2.2).

     (c)   Each Guarantor agrees that the Company Obligations may at any time and from time to time
exceed the amount of the liability of such Guarantor hereunder without impairing the guarantee
contained in this Section 2 or affecting the rights and remedies of the Collateral Agent or any
other Secured Party hereunder.

     (d)   The guarantee contained in this Section 2 shall remain in full force and effect until
all the Company Obligations and the obligations of each Guarantor under the guarantee contained in
this Section 2 shall have been satisfied by payment in full (other than contingent or
indemnification obligations not then due).

     (e)   No payment (other than payment in full in cash) made by the Company, any of the
Guarantors, any other guarantor or any other Person or received or collected by Collateral Agent or
any other Secured Party from the Company, any of the Guarantors, any other guarantor or any other
Person by

5

 

virtue of any action or proceeding or any set-off or appropriation or application at any time
or from time to time in reduction of or in payment of the Company Obligations shall be deemed to
modify, reduce, release or otherwise affect the liability of any Guarantor hereunder which shall,
notwithstanding any such payment (other than any payment made by such Guarantor in respect of the
Company Obligations or any payment received or collected from such Guarantor in respect of the
Company Obligations), remain liable for the Company Obligations up to the maximum liability of such
Guarantor hereunder until the Company Obligations shall have been paid in full (other than
contingent or indemnification obligations not then due).

     2.2 Right of Contribution. Each Guarantor hereby agrees that to the extent that a
Guarantor shall have paid more than its proportionate share of any payment made hereunder, such
Guarantor shall be entitled to seek and receive contribution from and against any other Guarantor
hereunder which has not paid its proportionate share of such payment. Each Guarantor’s right of
contribution shall be subject to the terms and conditions of Section 2.3. The provisions of this
Section 2.2 shall in no respect limit the obligations and liabilities of any Guarantor to the
Secured Parties and each Guarantor shall remain liable to the Secured Parties for the full amount
guaranteed by such Guarantor hereunder.

     2.3 No Subrogation. Notwithstanding any payment made by any Guarantor hereunder or
any set-off or application of funds of any Guarantor by the Collateral Agent or any other Secured
Party, no Guarantor shall be entitled to be subrogated to any of the rights of the Collateral Agent
or any other Secured Party against the Company or any other Guarantor or any collateral security or
guarantee or right of offset held by the Collateral Agent or any other Secured Party for the
payment of the Company Obligations, nor shall any Guarantor seek or be entitled to seek any
contribution or reimbursement from the Company or any other Guarantor in respect of payments made
by such Guarantor hereunder, until all amounts owing to the Collateral Agent and the other Secured
Parties by the Company on account of the Company Obligations shall have been paid in full (other
than contingent or indemnification obligations not then due). If any amount shall be paid to any
Guarantor on account of such subrogation rights at any time when all of such Company Obligations
shall not have been paid in full, such amount shall be held by such Guarantor in trust for the
Collateral Agent and the other Secured Parties, segregated from other funds of such Guarantor, and
shall, forthwith upon receipt by such Guarantor, be turned over to the Collateral Agent in the
exact form received by such Guarantor (duly indorsed by such Guarantor to the Collateral Agent, if
required), to be applied against the Company Obligations, whether matured or unmatured, in such
order as the Collateral Agent may determine.

     2.4 Amendments, etc. with respect to the Company Obligations. Each Guarantor shall
remain obligated hereunder notwithstanding that, without any reservation of rights against any
Guarantor and without notice to or further assent by any Guarantor, any demand for payment of any
of the Company Obligations made by any of the Secured Parties may be rescinded by any of the
Secured Parties and any of the Company Obligations continued, and the Company Obligations, or the
liability of any other Person upon or for any part thereof, or any collateral security or guarantee
therefor or right of offset with respect thereto, may, from time to time, in whole or in part, be
renewed, extended, amended, modified, accelerated, compromised, waived, surrendered or released by
the Collateral Agent or any other Secured Party, and the Note Purchase Agreement and the other Note
Documents and any other documents executed and delivered in connection therewith may be amended,
modified, supplemented or terminated, in whole or in part, as the Required Holders or all Holders,
as the case may be, may deem advisable from time to time, and any collateral security, guarantee or
right of offset at any time held by the Collateral Agent or any other Secured Party for the payment
of the Company Obligations may be sold, exchanged, waived, surrendered or released. Neither the
Collateral Agent nor any other Secured Party shall have any obligation to protect, secure, perfect
or insure any Lien at any time held by it as security for the Company Obligations or for the
guarantee contained in this Section 2 or any property subject thereto.

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     2.5 Guarantee Absolute and Unconditional. Each Guarantor waives any and all notice of the
creation, renewal, extension or accrual of any of the Company Obligations and notice of or proof of
reliance by the Collateral Agent or any other Secured Party upon the guarantee contained in this
Section 2 or acceptance of the guarantee contained in this Section 2; the Company Obligations, and
any of them, shall conclusively be deemed to have been created, contracted or incurred, or renewed,
extended, amended or waived, in reliance upon the guarantee contained in this Section 2; and all
dealings between the Company and any of the Guarantors, on the one hand, with respect to the Note
Documents and the Collateral Agent and the other Secured Parties, on the other hand, likewise shall
be conclusively presumed to have been had or consummated in reliance upon the guarantee contained
in this Section 2. Each Guarantor waives diligence, presentment, protest, demand for payment and
notice of default or nonpayment to or upon the Company or any of the Guarantors with respect to the
Company Obligations. Each Guarantor understands and agrees that the guarantee of such Guarantor
contained in this Section 2 shall be construed as a continuing, absolute and unconditional
guarantee of payment without regard to (a) the validity or enforceability of the Note Purchase
Agreement or any other Note Document, any of the Company Obligations or any other collateral
security therefor or guarantee or right of offset with respect thereto at any time or from time to
time held by any Holder, (b) any defense, set-off or counterclaim (other than a defense of payment
or performance) which may at any time be available to or be asserted by the Company or any other
Person against the Collateral Agent or any other Secured Party, or (c) any other circumstance
whatsoever (other than a defense of payment or performance) (with or without notice to or knowledge
of the Company or any Guarantor) which constitutes, or might be construed to constitute, an
equitable or legal discharge of the Company from the Company Obligations, or of such Guarantor
under the guarantee of such Guarantor contained in this Section 2, in bankruptcy or in any other
instance. When making any demand hereunder or otherwise pursuing its rights and remedies hereunder
against any Guarantor, Collateral Agent or any other Secured Party may, but shall be under no
obligation to, make a similar demand on or otherwise pursue such rights and remedies as it may have
against the Company, any other Guarantor or any other Person or against any collateral security or
guarantee for the Company Obligations or any right of offset with respect thereto, and any failure
by the Collateral Agent or any other Secured Party to make any such demand, to pursue such other
rights or remedies or to collect any payments from the Company, any other Guarantor or any other
Person or to realize upon any such collateral security or guarantee or to exercise any such right
of offset, or any release of the Company, any other Guarantor or any other Person or any such
collateral security, guarantee or right of offset, shall not relieve any Guarantor of any
obligation or liability hereunder, and shall not impair or affect the rights and remedies, whether
express, implied or available as a matter of law, of the Collateral Agent or any other Secured
Party against any Guarantor. For the purposes hereof “demand” shall include the commencement and
continuance of any legal proceedings.

     2.6 Reinstatement. The guarantee contained in this Section 2 shall continue to be
effective, or be reinstated, as the case may be, if at any time payment, or any part thereof, of
any of the Company Obligations is rescinded or must otherwise be restored or returned by the
Collateral Agent or any other Secured Party upon the insolvency, bankruptcy, dissolution,
liquidation or reorganization of the Company or any Guarantor, or upon or as a result of the
appointment of a receiver, intervenor or conservator of, or trustee or similar officer for, the
Company or any Guarantor or any substantial part of its property, or otherwise, all as though such
payments had not been made.

     2.7 Payments. Each Guarantor hereby guarantees that payments hereunder will be paid
to the Holders without set-off or counterclaim in Dollars.

SECTION 3. GRANT OF SECURITY INTEREST

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     3.1 Grant of Security Interests. Each Grantor hereby grants to the Collateral Agent,
for the ratable benefit of the Secured Parties, a security interest in all of the following
property now owned or at any time hereafter acquired by such Grantor or in which such Grantor now
has or at any time in the future may acquire any right, title or interest (collectively, the
“Collateral”), as collateral security for the prompt and complete payment and performance
when due (whether at the stated maturity, by acceleration or otherwise) of the Secured Obligations:

     (a)   all Accounts;

     (b)   all Chattel Paper;

     (c)   all Deposit Accounts;

     (d)   all Documents;

     (e)   all Equipment;

     (f)   all Fixtures;

     (g)   all General Intangibles;

     (h)   all Goods not covered by the other clauses of this Section 3;

     (i)   all Instruments, including the Pledged Notes;

     (j)   all Intellectual Property;

     (k)   all Inventory;

     (l)   all Investment Property;

     (m)   all other tangible and intangible personal property not otherwise described above;

     (n)   all books and records pertaining to the Collateral; and

     (o)   to the extent not otherwise included, all Proceeds and products of any of the Collateral
and products of any and all of the foregoing and all collateral security and guarantees given by
any Person with respect to any of the foregoing;

provided, however, that notwithstanding any of the other provisions set forth in
this Section 3.1, this Agreement shall not constitute a grant of a security interest in (i) any
Vehicles and all Proceeds thereof, (ii) any property to the extent that such grant of a security
interest is prohibited by any Requirements of Law of a Governmental Authority, requires a consent
not obtained of any Governmental Authority pursuant to such Requirement of Law or is prohibited by,
or constitutes a breach or default under or results in the termination of or requires any consent
not obtained under, any contract, license, agreement, instrument or other document evidencing or
giving rise to such property or, in the case of any Investment Property, any Pledged Security, any
applicable shareholder or similar agreement, except to the extent that such Requirement of Law or
the term in such contract, license, agreement, instrument or other document or shareholder or
similar agreement providing for such prohibition, breach, default or termination or requiring such
consent is ineffective under applicable law (including Sections 9-406, 9-407, 9-408 and 9-409 of
the UCC), (iii) any Exempt Deposit Accounts, (iv) any Excluded Equipment, (v) any Intellectual
Property, if the grant of such security interest shall constitute or result in the abandonment,
invalidation or

8

 

rendering unenforceable any material right, title or interest of any Grantor with respect thereto,
(vi) any Collateral that constitutes Equipment subject to a certificate of title statute, (vii)
more than 65% of the Voting Stock of any Foreign Subsidiary that is a CFC owned directly by a
Grantor and (viii) any Capital Stock of any Subsidiary owned directly or indirectly by a Foreign
Subsidiary that is a CFC. It is hereby understood and agreed that any Property described in the
preceding proviso, and any Property that is otherwise expressly excluded from clauses (a) through
(o) above, shall be excluded from the definition of “Collateral”.

SECTION 4. REPRESENTATIONS AND WARRANTIES

          To induce the Collateral Agent and the other Secured Parties to enter into the Note Purchase
Agreement and each Grantor hereby represents and warrants to the Collateral Agent and each other
Secured Party that:

     4.1 Representations in Note Purchase Agreement. In the case of each Guarantor, the
representations and warranties set forth in Section 5 of the Note Purchase Agreement to the extent
they refer to such Guarantor or to the Note Documents to which such Guarantor is a party, each of
which is hereby incorporated herein by reference, are true and correct in all material respects,
and the Collateral Agent and each other Secured Party shall be entitled to rely on each of them as
if they were fully set forth herein.

     4.2 [Reserved].

     4.3 Names; Jurisdiction of Organization; Chief Executive Office. On the date hereof,
such Grantor’s full and correct legal name, jurisdiction of organization and identification number
from the jurisdiction of organization (if any) are specified on Schedule 2.

     4.4 Pledged Securities. On the date hereof, such Grantor holds no Investment Property
other than that specified on Schedule 1; except as
otherwise indicated on Schedule 1; except as
otherwise indicated on Schedule 1, such Investment Property consists entirely of
Certificated Securities; and the shares of Pledged Stock pledged by such Grantor hereunder:

     (a)   with respect to the shares of Pledged Stock issued by the Company and any other
Subsidiary of the Company, have been duly authorized, validly issued and are fully paid and
non-assessable, to the extent such concepts are applicable; and

     (b)   constitute (i) all the issued and outstanding shares of all classes of the Capital
Stock owned by such Grantor of each Issuer that is a Domestic Subsidiary, and (ii) 65% of the
issued and outstanding Voting Stock, and all of the issued and outstanding shares of Capital Stock
other than Voting Stock, of any Foreign Subsidiary that is a CFC (which CFC is owned directly by
such Grantor) (provided that it is understood that if, at the Closing, any Grantor holds a Pledged
Security that is a Certificated Security issued by a Foreign Subsidiary, the requirement to
deliver certificates evidencing such Pledged Securities to the Collateral Agent, together
with stock powers or indorsements thereof reasonably satisfactory to the Collateral
Agent, shall be subject to the terms of the last sentence of Section 4.17 of the Note
Purchase Agreement).

     4.5 Intellectual Property. The Grantor has listed certain Intellectual Property on
Schedule 3 that is included within the Collateral as of the date hereof.

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     4.6 Certain Accounts. As of the date hereof, (a) such Grantor has no Deposit Accounts
other than those listed on Schedule 4 hereto and (b) legal, binding and enforceable Account Control
Agreements are in effect in respect of each Deposit Account listed on Schedule 4 hereto except to
the extent that such Account Control Agreements are not required by Section 5.6.

     4.7 Equipment and Inventory. All of the Equipment and Inventory of such Grantor are
located at the places specified therefor in Schedule 5 hereto, as such Schedule 5 may be amended
from time to time pursuant to Section 5.7.

SECTION 5. COVENANTS

          Each Guarantor and each Grantor covenants and agrees with the Collateral Agent and the other
Secured Parties that, from and after the date of this Agreement until the Secured Obligations shall
have been paid in full (other than contingent and indemnification obligations not yet due and
owing):

     5.1 Covenants in Note Purchase Agreement. Each Guarantor shall comply with all
provisions of the Note Purchase Agreement applicable to a “Guarantor” thereunder.

     5.2 Investment Property.

     (a)   In the case of each Grantor which is an Issuer, such Issuer agrees that (i) it will be
bound by the terms of this Agreement relating to the Pledged Securities issued by it and will
comply with such terms insofar as such terms are applicable to it and (ii) the terms of Sections
6.3(c) and 6.8 shall apply to it, mutatis mutandis, with respect to all actions that may be
required of it pursuant to Section 6.3(c) or 6.8 with respect to the Pledged Securities issued by
it.

     (b)   To the extent that any Pledged Security is a Certificated Security, or to the extent
that any Pledged Security that is an Uncertificated Security becomes a Certificated Security, then
in each such case the applicable Grantor shall promptly deliver such certificates evidencing such
Pledged Securities to the Collateral Agent together with stock powers or indorsements thereof
reasonably satisfactory to the Collateral Agent; provided that if, at the Closing, any Grantor holds a Pledged Security that is a
Certificated Security issued by a Foreign Subsidiary, the requirement to deliver
certificates evidencing such Pledged Securities to the Collateral Agent, together with
stock powers or indorsements thereof reasonably satisfactory to the Collateral Agent,
shall be subject to the terms of the last sentence of Section 4.17 of the Note Purchase
Agreement.

     (c)   To the extent that any Pledged Security is or becomes an Uncertificated Security, the
applicable Grantor will cause the issuer thereof either (i) to register the Collateral Agent as the
registered owner of such security or (ii) to agree in an authenticated record with such Grantor and
the Collateral Agent that such issuer will comply with instructions with respect to such security
originated by the Collateral Agent without further consent of such Grantor, such authenticated
record to be in form and substance satisfactory to the Collateral Agent.

     (d)   To the extent that any Pledged Security is or becomes a Security Entitlement, the
applicable Grantor will cause the securities intermediary with respect to such Security Entitlement
either (i) to identify in its records the Collateral Agent as the entitlement holder of such
security entitlement against such securities intermediary or (ii) to agree in an authenticated
record with such Grantor and the Collateral Agent that such securities intermediary will comply
with entitlement orders (that is, notifications communicated to such securities intermediary
directing transfer or redemption of the financial asset to which such Grantor has a security
entitlement) originated by the Collateral Agent without further consent of such Grantor, such
authenticated record to be in form and substance satisfactory to the Collateral Agent.

     5.3 Commercial Tort Claims. In the case of each Grantor, such Grantor shall, promptly
upon asserting any Commercial Tort Claim in any judicial or arbitration proceeding, give notice to
the

10

 

Collateral Agent of such Commercial Tort Claim of such Grantor in which the damages being
sought exceeds $1,000,000 and shall grant to the Collateral Agent, for the ratable benefit of the
Collateral Agent and the Holders, a security interest in such Commercial Tort Claim. After such
grant, such commercial tort claim shall be deemed to constitute Collateral for purposes of this
Agreement.

     5.4 Intellectual Property. With respect to its owned Intellectual Property
applications and registrations (including issued Patents) constituting Collateral that are
registered, pending or issued by or with the U.S. Patent and Trademark Office or the U.S. Copyright
Office, each Grantor agrees to execute or otherwise authenticate an agreement, in substantially the
form set forth in Annex III-1 hereto or otherwise in form and substance satisfactory to the
Collateral Agent (an “Intellectual Property Security Agreement”), for recording the security
interest granted hereunder to the Collateral Agent in such Collateral with the U.S. Patent and
Trademark Office, the U.S. Copyright Office and any other governmental authorities necessary to
perfect the security interest hereunder in such Collateral.

     5.5 After-Acquired Intellectual Property. Each Grantor agrees that should it obtain
an ownership interest in any item of Intellectual Property that is not on the date hereof a part of
the Collateral (“After-Acquired Intellectual Property”) (i) the provisions of this Agreement shall
automatically apply thereto, and (ii) any such After-Acquired Intellectual Property and, in the
case of trademarks, the goodwill symbolized thereby, shall automatically become part of the
Collateral subject to the terms and conditions of this Agreement with respect thereto. Each
Grantor shall give prompt written notice to the Collateral Agent identifying any After-Acquired
Intellectual Property that such Grantor determines, in its reasonable business judgment, to
register with the U.S. Patent and Trademark Office or the U.S. Copyright Office and such Grantor
shall execute and deliver to the Collateral Agent with such written notice, or otherwise
authenticate, an agreement substantially in the form of Annex III-2 hereto or otherwise in form and
substance satisfactory to the Collateral Agent (an “IP Security Agreement Supplement”) covering
such After-Acquired Intellectual Property, which IP Security Agreement Supplement shall be recorded
with the U.S. Patent and Trademark Office, the U.S. Copyright Office and any other governmental
authorities necessary to perfect the security interest hereunder in such After-Acquired
Intellectual Property.

     5.6 Deposit Accounts.

     (a)   Each Grantor will maintain each of its Deposit Accounts (other than Exempt Deposit
Accounts) only with banks (the “Pledged Account Banks”) that have agreed, in a record authenticated
by the Grantor, the Collateral Agent and the Pledged Account Banks, to (i) comply with instructions
originated by the Collateral Agent directing the disposition of funds in the such Deposit Accounts
without the further consent of the Grantor and (ii) waive or subordinate in favor of the Collateral
Agent all claims of the Pledged Account Banks (including, without limitation, claims by way of a
security interest, lien or right of setoff or right of recoupment but excluding customary
exceptions for charge-backs and account fees or any other claims agreed to by the Collateral Agent)
to such Deposit Accounts, which authenticated record shall be in form and substance satisfactory to
the Collateral Agent (an “Account Control Agreement”).

     (b)   [RESERVED].

     (c)   The Collateral Agent may, at any time and without notice to, or consent from, the
Grantor, transfer, or direct the transfer of, funds from any Deposit Account of a Grantor to
satisfy the Grantor’s obligations under the Note Documents then due and payable if an Event of
Default shall have occurred and be continuing. The Collateral Agent agrees with each Grantor that
it shall not exercise control over any Deposit Account of such Grantor by the delivery of a notice
of sole control, the initiation of instructions or otherwise until an Event of Default shall have
occurred and be continuing.

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     5.7 Equipment and Inventory.

     (a)   Each Grantor will keep the Equipment and Inventory of such Grantor (other than Inventory
sold in the ordinary course of business, de minimis amounts of Equipment, Equipment disposed as
permitted under the Note Purchase Agreement, Equipment and Inventory in transit to or between
locations specified in Schedule 5 or identified in compliance with Section 9.2(g) of the Note
Purchase Agreement) at the places therefor specified in Schedule 5 or the places specified in
accordance with Section 9.2(g) of the Note Purchase Agreement. Upon the giving of any notice in
accordance with Section 9.2(g) of the Note Purchase Agreement, Schedule 5 shall be automatically
amended to add any new locations specified in such notice.

SECTION 6. REMEDIAL PROVISIONS

     6.1 Certain Matters Relating to Receivables.

     (a)   At any time during the continuance of an Event of Default, upon the Collateral Agent’s
reasonable request at the expense of the relevant Grantor, such Grantor shall use commercially
reasonable efforts to cause independent public accountants or others satisfactory to the Collateral
Agent to furnish to the Collateral Agent reports showing reconciliations, aging and test
verifications of, and trial balances for, the Receivables.

     (b)   If required by the Collateral Agent at any time after an exercise of remedies under
Section 12.1 of the Note Purchase Agreement, any payments of Receivables, when collected by any
Grantor, (i) shall be forthwith (and, in any event, within two Business Days) deposited by such
Grantor in the exact form received, duly indorsed by such Grantor to the Collateral Agent if
required, in a Collateral Account maintained under the sole dominion and control of the Collateral
Agent, subject to withdrawal by the Collateral Agent for the account of the Collateral Agent and
the other Secured Parties only as provided in Section 6.6, and (ii) until so turned over, shall be
held by such Grantor in trust for the Collateral Agent and the other Secured Parties, segregated
from other funds of such Grantor. Each such deposit of Proceeds of Receivables shall be
accompanied by a report identifying in reasonable detail the nature and source of the payments
included in the deposit.

     (c)   If an Event of Default has occurred and is continuing and at the Collateral Agent’s
request, each Grantor shall deliver to the Collateral Agent copies of all documents evidencing, and
relating to, the agreements and transactions which gave rise to the Receivables, including, without
limitation, all orders, invoices and shipping receipts.

     6.2 Communications with Grantors; Grantors Remain Liable.

     (a)   Upon the request of the Collateral Agent at any time after an exercise of remedies under
Section 12.1 of the Note Purchase Agreement, each Grantor shall notify obligors on the Receivables
that the Receivables have been assigned to the Collateral Agent for the ratable benefit of the
Collateral Agent and the other Secured Parties and that payments in respect thereof shall be made
directly to the Collateral Agent.

     (b)   Anything herein to the contrary notwithstanding, each Grantor shall remain liable under
the Receivables to observe and perform all the conditions and obligations to be observed and
performed by it thereunder, all in accordance with the terms of any agreement giving rise thereto.
Neither the Collateral Agent nor any other Secured Party shall have any obligation or liability
under any Receivable (or any agreement giving rise thereto) by reason of or arising out of this
Agreement or the receipt by the Collateral Agent or any other Secured Party of any payment relating
thereto, nor shall the Collateral

12

 

Agent or any other Secured Party be obligated in any manner to perform any of the obligations
of any Grantor under or pursuant to any Receivable (or any agreement giving rise thereto), to make
any payment, to make any inquiry as to the nature or the sufficiency of any payment received by it
or as to the sufficiency of any performance by any party thereunder, to present or file any claim,
to take any action to enforce any performance or to collect the payment of any amounts which may
have been assigned to it or to which it may be entitled at any time or times.

     6.3 Pledged Securities. (a)   Unless an Event of Default shall have occurred and be
continuing and the Collateral Agent shall have given notice to the relevant Grantor of the
Collateral Agent’s intent to exercise its corresponding rights pursuant to Section 6.3(b), each
Grantor shall be permitted to receive all cash dividends paid in respect of the Pledged Stock and
all payments made in respect of the Pledged Notes to the extent permitted in the Note Purchase
Agreement, and to exercise all voting and corporate rights with respect to the Pledged Securities.

     (b)   If an Event of Default shall occur and be continuing and the Collateral Agent shall give
notice of its intent to exercise such rights to the relevant Grantor or Grantors, (i) unless
otherwise provided in the Note Purchase Agreement, the Collateral Agent shall have the right to
receive any and all cash dividends, payments or other Proceeds paid in respect of the Pledged
Securities and make application thereof to the Obligations in the order set forth in Section 6.6,
and (ii) any or all of the Pledged Securities shall be registered in the name of the Collateral
Agent or its nominee, and the Collateral Agent or its nominee may thereafter exercise (x) all
voting, corporate and other rights pertaining to such Pledged Securities at any meeting of
shareholders of the relevant Issuer or Issuers or otherwise and (y) any and all rights of
conversion, exchange and subscription and any other rights, privileges or options pertaining to
such Pledged Securities as if it were the absolute owner thereof (including, without limitation,
the right to exchange at its discretion any and all of the Pledged Securities upon the merger,
consolidation, reorganization, recapitalization or other fundamental change in the corporate
structure of any Issuer, or upon the exercise by any Grantor or the Collateral Agent of any right,
privilege or option pertaining to such Pledged Securities, and in connection therewith, the right
to deposit and deliver any and all of the Pledged Securities with any committee, depositary,
transfer agent, registrar or other designated agency upon such terms and conditions as the
Collateral Agent may determine), all without liability except to account for property actually
received by it, but the Collateral Agent shall have no duty to any Grantor to exercise any such
right, privilege or option and shall not be responsible for any failure to do so or delay in so
doing unless the Collateral Agent has given notice of its intent to exercise as set forth above.

     (c)   Each Grantor hereby authorizes and instructs each Issuer of any Pledged Securities
pledged by such Grantor hereunder to comply with any instruction received by it from the Required
Holders in writing that (x) states that an Event of Default has occurred and is continuing and (y)
is otherwise in accordance with the terms of this Agreement, without any other or further
instructions from such Grantor, and each Grantor agrees that each Issuer shall be fully protected
in so complying.

     6.4 Intellectual Property.

     (i) For the purpose of enabling the Collateral Agent to exercise rights and remedies
under Section 6 at such time (and solely during such time) as the Collateral Agent shall be
lawfully entitled to exercise such rights and remedies, and for no other purpose, each
Grantor hereby grants to the Collateral Agent, to the extent assignable, an irrevocable, non
exclusive license (exercisable without payment of royalty or other compensation to such
Grantor) to use, assign, license or sublicense any of the Intellectual Property now owned or
hereafter acquired by such Grantor, wherever the same may be located. For the avoidance of
doubt, the Collateral

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Agent shall not be entitled to exercise any of the foregoing license rights except
during an Event of Default or for any purpose other than its exercise of remedies under this
Agreement.

     (ii) Notwithstanding anything contained herein to the contrary, but subject to the
provisions of Section 10.5 of the Note Purchase Agreement that limit the rights of the
Grantors to dispose of their property, notwithstanding the foregoing but subject to the
Collateral Agent’s exercise of its rights and remedies under Section 6, the Grantors will be
permitted to exploit, use, enjoy, protect, license, sublicense, assign, sell, dispose of or
take other actions with respect to the Intellectual Property in the ordinary course of the
business of the Grantors. In furtherance of the foregoing, so long as no Event of Default
shall have occurred and be continuing, the Collateral Agent shall from time to time, upon
the request of the respective Grantor (through the Company), execute and deliver any
instruments, certificates or other documents, in the form so requested, that such Grantor
(through the Company) shall have certified are appropriate in its judgment to allow it to
take any action permitted above (including relinquishment of the license provided pursuant
to clause (i) immediately above as to any specific Intellectual Property). Further, upon
the payment in full in cash of all of the Secured Obligations (contingent or indemnification
obligations not then due) or earlier expiration of this Agreement or release of the
Collateral, the Collateral Agent shall grant back to the Grantors the license granted
pursuant to clause (i) immediately above. The exercise of rights and remedies under Section
6 by the Collateral Agent shall not terminate the rights of the holders of any licenses or
sublicenses theretofore granted by the Grantors in accordance with the first sentence of
this clause (ii).

     6.5 Proceeds to be Turned Over To Collateral Agent. If an Event of Default shall
occur and be continuing and the Notes shall have been accelerated pursuant to Section 12 of the
Note Purchase Agreement, all Proceeds received by any Grantor consisting of cash, checks and other
near-cash items shall be held by such Grantor in trust for the Collateral Agent and the other
Secured Parties, segregated from other funds of such Grantor, and shall, promptly upon receipt by
such Grantor, be turned over to the Collateral Agent in the exact form received by such Grantor
(duly indorsed by such Grantor to the Collateral Agent, if required). All Proceeds received by the
Collateral Agent hereunder shall be held by the Collateral Agent in a Collateral Account maintained
under its sole dominion and control. All Proceeds while held by the Collateral Agent in a
Collateral Account (or by such Grantor in trust for the Collateral Agent and the other Secured
Parties) shall continue to be held as collateral security for all of the Secured Obligations and
shall not constitute payment thereof until applied as provided in Section 6.6.

     6.6 Application of Proceeds. If an Event of Default shall have occurred and be
continuing and the Notes shall have been accelerated pursuant to Section 12 of the Note Purchase
Agreement, at any time at the Collateral Agent’s election, the Collateral Agent may apply all or
any part of Proceeds constituting Collateral and any proceeds of the guarantee set forth in Section
2, in payment of the Secured Obligations, and shall make any such application in the following
order:

     First, to pay incurred and unpaid reasonable, out-of-pocket fees and expenses
of the Collateral Agent;

     Second, to the Collateral Agent, for application by it towards payment of
amounts then due and owing and remaining unpaid in respect of the Secured Obligations,
pro rata among the Secured Parties according to the amounts of the Secured
Obligations then due and owing and remaining unpaid to each of them; and

     Third, any balance of such Proceeds remaining after the Secured Obligations
shall have been paid in full (other than contingent or indemnification obligations not then
due), paid to the Company.

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     6.7 Code and Other Remedies. If an Event of Default shall occur and be continuing,
the Collateral Agent, on behalf of itself and the other Secured Parties, may exercise, in addition
to all other rights and remedies granted to them in this Agreement and in any other instrument or
agreement securing, evidencing or relating to the Secured Obligations, all rights and remedies of a
secured party under the UCC or any other applicable law. Without limiting the generality of the
foregoing, the Collateral Agent, without demand of performance or other demand, presentment,
protest, advertisement or notice of any kind (except any notice required by law referred to below
or notices otherwise provided in the Note Documents) to or upon any Grantor or any other Person
(all and each of which demands, defenses, advertisements and notices are hereby waived unless
otherwise provided in the Note Documents), may in such circumstances forthwith collect, receive,
appropriate and realize upon the Collateral, or any part thereof, and/or may forthwith sell, lease,
assign, give option or options to purchase, or otherwise dispose of and deliver the Collateral or
any part thereof (or contract to do any of the foregoing), in one or more parcels at public or
private sale or sales, at any exchange, broker’s board or office of the Collateral Agent or any
other Secured Party or elsewhere upon such terms and conditions as it may deem advisable and at
such prices as it may deem best, for cash or on credit or for future delivery without assumption of
any credit risk. The Collateral Agent or any other Secured Party shall have the right upon any
such public sale or sales, and, to the extent permitted by law, upon any such private sale or
sales, to purchase the whole or any part of the Collateral so sold, free of any right or equity of
redemption in any Grantor, which right or equity is hereby waived and released. Each Grantor
further agrees, at the Collateral Agent’s request, to assemble the Collateral and make it available
to the Collateral Agent at places which the Collateral Agent shall reasonably select, whether at
such Grantor’s premises or elsewhere. The Collateral Agent shall apply the net proceeds of any
action taken by it pursuant to this Section 6.6, after deducting all reasonable costs and expenses
of every kind actually incurred in connection therewith or incidental to the care or safekeeping of
any of the Collateral or in any way relating to the Collateral or the rights of the Collateral
Agent and the other Secured Parties hereunder, including, without limitation, reasonable attorneys’
fees and disbursements, to the payment in whole or in part of the Obligations, in such order as the
Collateral Agent may elect, and only after such application and after the payment by the Collateral
Agent of any other amount required by any provision of law, including, without limitation, Section
9-615(a)(3) of the UCC, need the Collateral Agent account for the surplus, if any, to any Grantor.
The Collateral Agent shall give the Company prior written notice of the time and place of any
proposed sale or other disposition of Collateral, and, to the extent any notice is required by law,
each Grantor agrees such notice shall be deemed reasonable and proper if such notice is given at
least 10 days before such sale or other disposition.

     6.8 Private Sales. Each Grantor recognizes that the Collateral Agent may be unable to
effect a public sale of any or all the Pledged Stock, by reason of certain prohibitions contained
in the Securities Act and applicable state securities laws or otherwise, and may be compelled to
resort to one or more private sales thereof to a restricted group of purchasers which will be
obliged to agree, among other things, to acquire such securities for their own account for
investment and not with a view to the distribution or resale thereof. Each Grantor acknowledges
and agrees that any such private sale may result in prices and other terms less favorable than if
such sale were a public sale and, notwithstanding such circumstances, agrees that any such private
sale shall be deemed to have been made in a commercially reasonable manner. The Collateral Agent
shall be under no obligation to delay a sale of any of the Pledged Stock for the period of time
necessary to permit the Issuer thereof to register such securities for public sale under the
Securities Act, or under applicable state securities laws, even if such Issuer would agree to do
so.

     6.9 Deficiency. Each Grantor shall remain liable for any deficiency if the proceeds
of any sale or other disposition of the Collateral are insufficient to pay its Secured Obligations
and the reasonable fees and disbursements of any attorneys employed by the Collateral Agent to
collect such deficiency.

15

 

SECTION 7. THE COLLATERAL AGENT

     7.1 Collateral Agent’s Appointment as Attorney-in-Fact, etc.

     (a)   Each Grantor hereby irrevocably constitutes and appoints the Collateral Agent and any
officer or agent thereof, with full power of substitution, as its true and lawful attorney-in-fact
with full irrevocable power and authority in the place and stead of such Grantor and in the name of
such Grantor or in its own name, for the purpose of carrying out the terms of this Agreement, to
take any and all appropriate action and to execute any and all documents and instruments which may
be necessary or desirable to accomplish the purposes of this Agreement, and, without limiting the
generality of the foregoing, each Grantor hereby gives the Collateral Agent the power and right, on
behalf of such Grantor, without notice to or assent by such Grantor, to do any or all of the
following (provided, that anything in this Section 7.1(a) to the contrary notwithstanding,
the Collateral Agent agrees that it will not exercise any rights under the power of attorney
provided for in this Section 7.1(a) unless an Event of Default shall have occurred and be
continuing):

     (i) in the name of such Grantor or its own name, or otherwise, take possession of and
indorse and collect any checks, drafts, notes, acceptances or other instruments for the
payment of moneys due under any Receivable or with respect to any other Collateral and file
any claim or take any other action or proceeding in any court of law or equity or otherwise
deemed appropriate by the Collateral Agent for the purpose of collecting any and all such
moneys due under any Receivable or with respect to any other Collateral whenever payable;

     (ii) in the case of any Intellectual Property, execute and deliver, and have recorded,
any and all agreements, instruments, documents and papers as the Collateral Agent may
request to evidence the Collateral Agent’s and the other Secured Parties’ security interest
in such Intellectual Property and the goodwill and general intangibles of such Grantor
relating thereto or represented thereby;

     (iii) pay or discharge taxes and Liens levied or placed on or threatened against the
Collateral, effect any repairs or provide any insurance called for by the terms of this
Agreement and pay all or any part of the premiums therefor and the costs thereof;

     (iv) execute, in connection with any sale provided for in Section 6.7 or 6.8, any
indorsements, assignments or other instruments of conveyance or transfer with respect to the
Collateral; and

     (v) (1) direct any party liable for any payment under any of the Collateral to make
payment of any and all moneys due or to become due thereunder directly to the Collateral
Agent or as the Collateral Agent shall direct; (2) ask or demand for, collect, and receive
payment of and receipt for, any and all moneys, claims and other amounts due or to become
due at any time in respect of or arising out of any Collateral; (3) sign and indorse any
invoices, freight or express bills, bills of lading, storage or warehouse receipts, drafts
against debtors, assignments, verifications, notices and other documents in connection with
any of the Collateral; (4) commence and prosecute any suits, actions or proceedings at law
or in equity in any court of competent jurisdiction to collect the Collateral or any portion
thereof and to enforce any other right in respect of any Collateral; (5) defend any suit,
action or proceeding brought against such Grantor with respect to any Collateral; (6)
settle, compromise or adjust any such suit, action or proceeding and, in connection
therewith, give such discharges or releases as the Collateral Agent may deem appropriate;
(7) assign any Copyright, Patent, Trademark or Trade Secret (along with the goodwill of the
business to which any such Copyright, Patent, Trademark or Trade Secret

16

 

pertains), throughout the world for such term or terms, on such conditions, and in such
manner, as the Collateral Agent shall in its sole discretion determine; and (8) generally,
sell, transfer, pledge and make any agreement with respect to or otherwise deal with any of
the Collateral as fully and completely as though the Collateral Agent were the absolute
owner thereof for all purposes, and do, at the Collateral Agent’s option and such Grantor’s
expense, at any time, or from time to time, all acts and things which the Collateral Agent
deems necessary to protect, preserve or realize upon the Collateral and the Collateral
Agent’s and the other Secured Parties’ security interests therein and to effect the intent
of this Agreement, all as fully and effectively as such Grantor might do.

     (b)   If any Grantor fails to perform or comply with any of its agreements contained herein,
the Collateral Agent, at its option, but without any obligation so to do, may give such Grantor
written notice of such failure to perform or comply and if such Grantor fails to perform or comply
within four (4) Business Days of receiving such notice (or if the Collateral Agent reasonably
determines that irreparable harm to the Collateral or to the security interest of the Collateral
Agent hereunder could result prior to the end of such three-Business Day period), then the
Collateral Agent may perform or comply, or otherwise cause performance or compliance, with such
agreement.

     (c)   All powers, authorizations and agencies contained in this Agreement are coupled with an
interest and are irrevocable until this Agreement is terminated and the security interests created
hereby are released.

     7.2 Duty of Collateral Agent. To the extent permitted by law, the Collateral Agent’s
sole duty with respect to the custody, safekeeping and physical preservation of the Collateral in
its possession, under Section 9-207 of the UCC or otherwise, shall be to deal with it in the same
manner as the Collateral Agent deals with similar property for its own account. None of the
Collateral Agent, any other Secured Party or any of their respective officers, directors, employees
or agents shall be liable for failure to demand, collect or realize upon any of the Collateral or
for any delay in doing so or shall be under any obligation to sell or otherwise dispose of any
Collateral upon the request of any Grantor or any other Person or to take any other action
whatsoever with regard to the Collateral or any part thereof. The powers conferred on the
Collateral Agent hereunder are solely to protect the Collateral Agent’s and the other Secured
Parties’ interests in the Collateral and shall not impose any duty upon the Collateral Agent to
exercise any such powers. The Collateral Agent shall be accountable only for amounts that they
actually receive as a result of the exercise of such powers, and neither they nor any of their
officers, directors, employees or agents shall be responsible to any Grantor for any act or failure
to act hereunder, except for their own gross negligence or willful misconduct or that of their
directors, officers, employees or agents.

     7.3 Execution of Financing Statements. Pursuant to any applicable law, each Grantor
authorizes the Collateral Agent to file or record financing statements and other filing or
recording documents or instruments with respect to the Collateral in such offices as the Collateral
Agent reasonably determines appropriate to perfect the security interests of the Collateral Agent
under this Agreement. Each Grantor authorizes the Collateral Agent to use the collateral
description “all personal property” or any similar phrase in any such financing statements.

     7.4 Authority of Collateral Agent. Each Grantor acknowledges that the rights and
responsibilities of the Collateral Agent under this Agreement with respect to any action taken by
the Collateral Agent or the exercise or non-exercise by the Collateral Agent of any option, voting
right, request, judgment or other right or remedy provided for herein or resulting or arising out
of this Agreement shall, as among the Collateral Agent and the other Secured Parties, be governed
by the Note Purchase Agreement and by such other agreements with respect thereto as may exist from
time to time

17

 

among them, but, as between the Collateral Agent and the Grantors, the Collateral Agent shall
be conclusively presumed to be acting as agent for the Collateral Agent and the other Secured
Parties with full and valid authority so to act or refrain from acting, and no Grantor shall be
under any obligation, or entitlement, to make any inquiry respecting such authority.

SECTION 8. MISCELLANEOUS

     8.1 Amendments in Writing. None of the terms or provisions of this Agreement may be
waived, amended, supplemented or otherwise modified except in accordance with Section 17 of the
Note Purchase Agreement.

     8.2 Notices. All notices, requests and demands to or upon the Collateral Agent or any
Grantor hereunder shall be in writing and sent (a) by telecopy if the sender on the same day sends
a confirming copy of such notice by a recognized overnight delivery service (charges prepaid), or
(b) by registered or certified mail with return receipt requested (postage prepaid), or (c) by a
recognized overnight delivery service (with charges prepaid). Any such notice, request or demand
must be sent:

     (a) if to the Collateral Agent, to the Collateral Agent at SNTC Holding, Inc., c/o HLTH
Corporation, River Drive Center 2, 669 River Drive, Elmwood Park, New Jersey 07407-1371,
Attention: General Counsel, Fax (201) 703-3443, or at such other address as the Collateral
Agent shall have specified to the Company and the Secured Parties in writing,

     (b) if to any Grantor, to the Company c/o Aurora Capital Group, 10877 Wilshire
Boulevard, Suite 2100, Los Angeles, California 90024 to the attention of Timothy J. Hart,
Esq. (facsimile (310) 277-5591), or at such other address as the Company shall have
specified to the Secured Parties in writing.

Notices under this Section 8.2 will be deemed given only when actually received.

     8.3 No Waiver by Course of Conduct; Cumulative Remedies. Neither the Collateral Agent
nor any other Secured Party shall by any act (except by a written instrument pursuant to Section
8.1), delay, indulgence, omission or otherwise be deemed to have waived any right or remedy
hereunder or to have acquiesced in any Default or Event of Default. No failure to exercise, nor
any delay in exercising, on the part of the Collateral Agent or any other Secured Party, any right,
power or privilege hereunder shall operate as a waiver thereof. No single or partial exercise of
any right, power or privilege hereunder shall preclude any other or further exercise thereof or the
exercise of any other right, power or privilege. A waiver by the Collateral Agent or any other
Secured Party of any right or remedy hereunder on any one occasion shall not be construed as a bar
to any right or remedy which the Collateral Agent or such other Secured Party would otherwise have
on any future occasion. The rights and remedies herein provided are cumulative, may be exercised
singly or concurrently and are not exclusive of any other rights or remedies provided by law.

     8.4 [Reserved].

     8.5 Successors and Assigns. This Agreement shall be binding upon the successors and
assigns of each Grantor and shall inure to the benefit of the Collateral Agent and the other
Secured Parties and their successors and assigns; provided, that no Grantor may assign, transfer or
delegate any of its rights or obligations under this Agreement without the prior written consent of
the Collateral Agent (it being understood that Dispositions permitted under the Note Purchase
Agreement shall not be subject to this proviso).

18

 

     8.6 [Reserved].

     8.7 Counterparts. This Agreement may be executed by one or more of the parties to
this Agreement on any number of separate counterparts (including by telecopy), and all of said
counterparts taken together shall be deemed to constitute one and the same instrument.

     8.8 Severability. Any provision of this Agreement which is prohibited or
unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of
such prohibition or unenforceability without invalidating the remaining provisions hereof, and any
such prohibition or unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction.

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

     8.10 Integration. This Agreement and the other Note Documents represent the agreement
of the Grantors, the Collateral Agent and the other Secured Parties with respect to the subject
matter hereof and thereof.

     8.11 GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED AND
INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

     8.12 Submission To Jurisdiction; Waivers. Each party hereto hereby irrevocably and
unconditionally:

     (a)   submits for itself and its property in any legal action or proceeding relating to this
Agreement and the other Note Documents to which it is a party, or for recognition and enforcement
of any judgment in respect thereof, to the non-exclusive general jurisdiction of the Courts of the
State of New York, the courts of the United States of America for the Southern District of New
York, and appellate courts from any thereof;

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

     (c)   agrees that service of process in any such action or proceeding may be effected by
mailing a copy thereof by registered or certified mail (or any substantially similar form of mail),
postage prepaid, to such Grantor at its address referred to in Section 8.2 or at such other address
of which the Collateral Agent shall have been notified pursuant thereto; and

     (d)   agrees that nothing herein shall affect the right to effect service of process in any
other manner permitted by law or shall limit the right to sue in any other jurisdiction.

     8.13 Acknowledgements. Each Grantor hereby acknowledges that:

     (a)   it has been advised by counsel in the negotiation, execution and delivery of this
Agreement and the other Note Documents to which it is a party;

19

 

     (b)   neither the Collateral Agent nor any other Secured Party has any fiduciary relationship
with or duty to any Grantor arising out of or in connection with this Agreement or any of the other
Note Documents, and the relationship between the Grantors, on the one hand, and the Collateral
Agent and the other Secured Parties, on the other hand, in connection herewith or therewith is
solely that of debtor and creditor; and

     (c)   no joint venture is created hereby or by the other Note Documents or otherwise exists by
virtue of the transactions contemplated hereby among the Collateral Agent and the Holders or among
the Grantors and the Collateral Agent and the Holders.

     8.14 Additional Grantors. Each Subsidiary of the Company that is required to become a
party to this Agreement pursuant to Section 9.8 of the Note Purchase Agreement shall become a
Grantor for all purposes of this Agreement upon execution and delivery by such Subsidiary of an
Assumption Agreement in the form of Annex I hereto.

     8.15 Releases.

     (a)   At such time as the Notes and the other Secured Obligations (other than contingent or
indemnification obligations not then due) shall have been paid in full in cash, the Collateral
shall be released from the Liens created hereby, and this Agreement and all obligations (other than
those expressly stated to survive such termination) of the Collateral Agent and each Grantor
hereunder shall terminate, all without delivery of any instrument or performance of any act by any
party, and all rights to the Collateral shall revert to the Grantors. At the request and sole
expense of any Grantor following any such termination, the Collateral Agent shall deliver to such
Grantor any Collateral held by the Collateral Agent hereunder, and execute and deliver to such
Grantor such documents as such Grantor shall reasonably request to evidence such termination.

     (b)   If any of the Collateral or any Subsidiary shall be sold, transferred or otherwise
disposed of by any Grantor in a transaction permitted by the Note Purchase Agreement, then the
Liens granted hereby shall automatically terminate and the Collateral Agent, at the request and
sole expense of such Grantor, shall execute and deliver to such Grantor all releases or other
documents reasonably necessary or desirable for the release of the Liens created hereby on such
Collateral or to evidence any such release. At the request and sole expense of the Company, a
Guarantor shall be released from its obligations hereunder in the event that all the Capital Stock
of such Guarantor shall be sold, transferred or otherwise disposed of in a transaction permitted by
the Note Purchase Agreement. The Collateral Agent, at the request and sole expense of such
Guarantor, shall execute and deliver to such Guarantor all releases or other documents reasonably
necessary or desirable for the release of the Guarantor Obligations of such Guarantor or to
evidence any such release.

     8.16 WAIVER OF JURY TRIAL. EACH GRANTOR AND, BY ACCEPTANCE OF THE BENEFITS HEREOF,
EACH OF THE COLLATERAL AGENT AND EACH OTHER FIRST LIEN SECURED PARTY, HEREBY IRREVOCABLY AND
UNCONDITIONALLY WAIVES TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING RELATING TO THIS AGREEMENT
OR ANY OTHER NOTE DOCUMENT AND FOR ANY COUNTERCLAIM THEREIN.

     8.17 Conflicts. In the event of any conflict between the provisions herein and the
provisions contained in the Note Purchase Agreement, the provisions contained in the Note Purchase
Agreement shall control.

20

 

          IN WITNESS WHEREOF, each of the undersigned has caused this Guarantee and Collateral Agreement
to be duly executed and delivered as of the date first above written.

	 	 	 	 
	 	SNTC HOLDING, INC., as Collateral Agent

 	 
	 	By:  	 	 
	 	Name:  	Frank Failla	 
	 	Title:  	Assistant Treasurer	 
	 
	 	POREX HOLDING CORPORATION

 	 
	 	By:  	 	 
	 	Name:  	Timothy J. Hart 	 
	 	Title:  	Vice President, Secretary, and General Counsel 	 
	 
	 	POREX CORPORATION

 	 
	 	By:  	 	 
	 	Name:  	Victor L. Marrero 	 
	 	Title:  	Executive Vice President and Chief Financial

Officer 	 
	 
	 	POREX SURGICAL, INC.

 	 
	 	By:  	 	 
	 	Name:  	Victor L. Marrero 	 
	 	Title:  	Vice President – Finance and Secretary 	 

21

 

Schedule 1 to the

Guarantee and Collateral Agreement

DESCRIPTION OF INVESTMENT PROPERTY

Pledged Stock:

	 	 	 	 	 	 	 	 	 
	Issuer	 	Class of Stock	 	Stock Certificate No.	 	No. of Shares	 
	Porex Corporation
	 	Common stock par

value $0.01 per share	 	Two certificates: 

4-988.864 shares 

5-11.136 shares	 	 	1,000	 
	 
	 		 	 	 	 	 	 
	Porex Technologies LTD
	 	Ordinary shares of	 	21	 	 	400	*
	 
	 	GBP1.00 per share	 	 	 	 	 	 
	 
	Porex Technologies SDN, BHD
	 	Ordinary shares of

 RM1.00 per share	 	Two certificates: 

3-2 shares

4-2,799,998 shares	 	 	2,800,000	*
	 
	Porex Technologies, GmbH
	 	Share of EUR 850,000	 	N/A - uncertificated	 	 	1	*
	 
	 	 registered capital	 	 	 	 	 	 
	 
	 		 	 	 	 	 	 
	Porex Surgical, Inc.
	 	Shares of common stock	 	2A	 	 	100	 
	 
	 	 par value $0.01 per share	 	 	 	 	 	 
	 
	 		 	 	 	 	 	 
	Porex Surgical GmbH
	 	Share of EUR 25,000	 	N/A - uncertificated	 	 	1	*
	 
	 	registered capital	 	 	 	 	 	 

 

			
	*	 	65% to be pledged under this Agreement.

 

 

Schedule 2 to the

Guarantee and Collateral Agreement

LEGAL NAME, LOCATION OF JURISDICTION OF ORGANIZATION AND CHIEF EXECUTIVE OFFICE

	 	 	 	 	 
	Grantor	 	Jurisdiction of Organization	 	Chief Executive Office
	Porex Holding Corporation

	 	Delaware
	 	c/o Aurora Capital Group

10877 Wilshire
Boulevard,
 Suite 2100

Los Angeles, CA 90024
	 
	Porex Corporation

	 	Delaware
	 	500 Bohannon Road,

Fairburn, Georgia
	 
	Porex Surgical, Inc.

	 	Delaware
	 	15 Dart Road,

Newnan, Georgia

 

 

Schedule 3 to the

Guarantee and Collateral Agreement

COPYRIGHTS AND COPYRIGHT LICENSES

None.

 

 

PATENTS AND PATENT LICENSES

[To be completed]

25

 

TRADEMARKS AND TRADEMARK LICENSES

[To be completed]

26

 

Schedule 4 to the

Guarantee and Collateral Agreement

DEPOSIT ACCOUNTS

[To be completed]

 

 

Schedule 5 to the

Guarantee and Collateral Agreement

LOCATION OF EQUIPMENT AND INVENTORY

500 Bohannon Road, Fairburn, Georgia

4715 Roosevelt Highway, College Park, Georgia

15 Dart Road, Newnan, Georgia 30265

5201 Phillip Lee Drive, Atlanta, Georgia 30336

 

 

Annex I to

Guarantee and Collateral Agreement

          ASSUMPTION AGREEMENT, dated as of                      ___, 20___, made by                                                              (the
“Additional Grantor”), in favor of [            ], as collateral agent (in such capacity, the
“Collateral Agent”) for the holders of the Notes (the “Holders “) issued under the
Note Purchase Agreement referred to below. All capitalized terms not defined herein shall have the
meaning ascribed to them in such Note Purchase Agreement.

W I T N E S S E T H :

          WHEREAS,Porex Holding Corporation, a Delaware corporation (the “Company”), the
subsidiaries of the Company party thereto, the Purchaser party thereto and the Collateral Agent
have entered into that certain Note Purchase Agreement, dated as of October 19, 2009 (as amended,
supplemented or otherwise modified from time to time, the “Note Purchase Agreement”);

          WHEREAS, in connection with the Note Purchase Agreement, the Company and the Grantor (other
than the Additional Grantor) have entered into the Guarantee and Collateral Agreement, dated as of
October 19, 2009 (as amended, supplemented or otherwise modified from time to time, the “Guarantee
and Collateral Agreement”) in favor of the Collateral Agent for the benefit of the Collateral
Agent and the other Secured Parties (as defined therein);

          WHEREAS, the Note Purchase Agreement requires the Additional Grantor to become a party to the
Guarantee and Collateral Agreement; and

          WHEREAS, the Additional Grantor has agreed to execute and deliver this Assumption Agreement in
order to become a party to the Guarantee and Collateral Agreement;

          NOW, THEREFORE, IT IS AGREED:

          1. Guarantee and Collateral Agreement. By executing and delivering this Assumption
Agreement, the Additional Grantor, as provided in Section 8.14 of the Guarantee and Collateral
Agreement, hereby becomes a party to the Guarantee and Collateral Agreement as a Grantor and
Guarantor thereunder with the same force and effect as if originally named therein as a Grantor and
Guarantor and, without limiting the generality of the foregoing, hereby expressly assumes all
obligations and liabilities of a Grantor and Guarantor thereunder and grants a security interest in
all its right, title and interest in the Collateral owned by it to secure the Secured Obligations.
The information set forth in Annex 1-A hereto is hereby added to the information set forth in the
Schedules to the Guarantee and Collateral Agreement. The Additional Grantor hereby represents and
warrants, to the extent applicable, that each of the representations and warranties contained in
Section 4 of the Guarantee and Collateral Agreement is true and correct in all material respects on
and as of the date hereof (after giving effect to this Assumption Agreement) as if made on and as
of such date.

          2. GOVERNING LAW. THIS ASSUMPTION AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED AND
INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

 

 

     IN WITNESS WHEREOF, the undersigned has caused this Assumption Agreement to be duly executed
and delivered as of the date first above written.

	 	 	 	 	 
	 	[ADDITIONAL GRANTOR]

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

2

 

Annex I-A to

Assumption Agreement

Supplement to Schedule 1

Supplement to Schedule 2

Supplement to Schedule 3

 

 

Annex II to

Guarantee and Collateral Agreement

ACKNOWLEDGMENT AND CONSENT

     The undersigned hereby acknowledges receipt of a copy of the Guarantee and Collateral
Agreement dated as of October 19, 2009  (the “Agreement”), made by the Grantors parties thereto
for the benefit of [            ], as Collateral Agent. The undersigned agrees for the benefit of
the Collateral Agent and the Holders as follows:

          1. The undersigned will be bound by the terms of the Agreement and will comply with such terms
insofar as such terms are applicable to the undersigned.

          2. The terms of Sections 6.3(c) and 6.8 of the Agreement shall apply to it, mutatis
mutandis, with respect to all actions that may be required of it pursuant to Section 6.3(c)
or 6.8 of the Agreement.

	 	 	 	 	 
	 	[NAME OF ISSUER]

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	 

	 	Address for Notices:	 	 
	 
	 	 	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	 

	 	 

	 	 
	 

	 	Fax:	 	 

 

 

Annex III-1 to the

Guarantee and Collateral Agreement

FORM OF INTELLECTUAL PROPERTY SECURITY AGREEMENT

          This INTELLECTUAL PROPERTY SECURITY AGREEMENT (as amended, amended and restated, supplemented
or otherwise modified from time to time, the “IP Security Agreement”) dated                     ,      , is made
by the Persons listed on the signature pages hereof (collectively, the “Grantors”) in favor of
                               , as collateral agent (the “Collateral Agent”) for the Secured Parties (as
defined in the Note Purchase Agreement referred to below).

          WHEREAS,Porex Holding Corporation, a Delaware corporation, has entered into a Note Purchase
Agreement dated as of                     ,       (as amended, amended and restated, supplemented or otherwise
modified from time to time, the “Note Purchase Agreement”), with SNTC Holding, Inc., as Collateral
Agent, the Guarantors and the Purchaser party thereto; terms defined in the Note Purchase Agreement
and not otherwise defined herein are used herein as defined in the Note Purchase Agreement.

          WHEREAS, as a condition precedent to the issuance of the Notes under the Note Purchase
Agreement, each Grantor has executed and delivered that certain Guarantee and Collateral Agreement
dated                     ,       made by the Grantors to the Collateral Agent (as amended, amended and
restated, supplemented or otherwise modified from time to time, the “Guarantee and Collateral
Agreement”).

          WHEREAS, under the terms of the Guarantee and Collateral Agreement, the Grantors have granted
to the Collateral Agent, for the ratable benefit of the Secured Parties, a security interest in,
among other property, certain intellectual property of the Grantors, and have agreed as a condition
thereof to execute this IP Security Agreement for recording with the U.S. Patent and Trademark
Office, the United States Copyright Office and other governmental authorities.

          NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, each Grantor agrees as follows:

          SECTION 1. Grant of Security. Each Grantor hereby grants to the Collateral Agent for
the ratable benefit of the Secured Parties a security interest in all of such Grantor’s right,
title and interest in and to the following (the “Collateral”):

     (i) the patents and patent applications set forth in Schedule A hereto (the
“Patents”);

     (ii) the trademark and service mark registrations and applications set forth in
Schedule B hereto (provided that no security interest shall be granted in United
States intent-to-use trademark applications to the extent that, and solely during
the period in which, the grant of a security interest therein would impair the
validity or enforceability of such intent-to-use trademark applications under
applicable federal law), together with the goodwill symbolized thereby (the
“Trademarks”);

     (iii) all copyrights, whether registered or unregistered, now owned or
hereafter acquired by such Grantor, including, without limitation, the copyright
registrations and applications and exclusive copyright licenses set forth in
Schedule C hereto (the “Copyrights”);

 

 

     (iv) all reissues, divisions, continuations, continuations-in-part, extensions,
renewals and reexaminations of any of the foregoing, all rights in the foregoing
provided by international treaties or conventions, all rights corresponding thereto
throughout the world and all other rights of any kind whatsoever of such Grantor
accruing thereunder or pertaining thereto;

     (v) any and all claims for damages and injunctive relief for past, present and
future infringement, dilution, misappropriation, violation, misuse or breach with
respect to any of the foregoing, with the right, but not the obligation, to sue for
and collect, or otherwise recover, such damages; and

     (vi) any and all proceeds of, collateral for, income, royalties and other
payments now or hereafter due and payable with respect to, and supporting
obligations relating to, any and all of the Collateral of or arising from any of the
foregoing.

          SECTION 2. Security for Obligations. The grant of a security interest in, the
Collateral by each Grantor under this IP Security Agreement secures the payment of all Obligations
of such Grantor now or hereafter existing under or in respect of the Note Documents, whether direct
or indirect, absolute or contingent, and whether for principal, reimbursement obligations,
interest, premiums, penalties, fees, indemnifications, contract causes of action, costs, expenses
or otherwise.

          SECTION 3. Recordation. Each Grantor authorizes and requests that the Register of
Copyrights, the Commissioner for Patents and the Commissioner for Trademarks and any other
applicable government officer record this IP Security Agreement.

          SECTION 4. Execution in Counterparts. This IP Security Agreement may be executed in
any number of counterparts, each of which when so executed shall be deemed to be an original and
all of which taken together shall constitute one and the same agreement.

          SECTION 5. Grants, Rights and Remedies. This IP Security Agreement has been entered
into in conjunction with the provisions of the Guarantee and Collateral Agreement. Each Grantor
does hereby acknowledge and confirm that the grant of the security interest hereunder to, and the
rights and remedies of, the Collateral Agent with respect to the Collateral are more fully set
forth in the Guarantee and Collateral Agreement, the terms and provisions of which are incorporated
herein by reference as if fully set forth herein.

          SECTION 6. Governing Law. This IP Security Agreement shall be governed by, and
construed in accordance with, the laws of the State of New York.

          IN WITNESS WHEREOF, each Grantor has caused this IP Security Agreement to be duly executed and
delivered by its officer thereunto duly authorized as of the date first above written.

	 	 	 	 	 
	 	POREX HOLDING CORPORATION

 	 
	 	By  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

ii

 

	 	 	 	 	 

	 	 	 	 	 
	 

	 	Address for Notices:	 	 
	 
	 	 	 	 
	 

	 	 

	 	 
	 

	 	 

	 	 
	 

	 	 

	 	 

	 	 	 	 	 
	 	[NAME OF GRANTOR]

 	 
	 	By  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	 

	 	Address for Notices:	 	 
	 
	 	 	 	 
	 

	 	 

	 	 
	 

	 	 

	 	 
	 

	 	 

	 	 

iii

 

Annex III-2 to the

Guarantee and Collateral Agreement

FORM OF INTELLECTUAL PROPERTY SECURITY AGREEMENT SUPPLEMENT

          This INTELLECTUAL PROPERTY SECURITY AGREEMENT SUPPLEMENT (this “IP Security Agreement
Supplement”) dated           ,      , is made by the Person listed on the signature page hereof (the
“Grantor”) in favor of                                                     , as collateral agent (the “Collateral
Agent”) for the Secured Parties (as defined in the Note Purchase Agreement referred to below).

          WHEREAS, Porex Holding Corporation, a Delaware corporation, has entered into a Note Purchase
Agreement dated as of           ,       (as amended, amended and restated, supplemented or otherwise
modified from time to time, the “Note Purchase Agreement”), with SNTC Holding, Inc., as Collateral
Agent, the Guarantors and the Purchaser party thereto; terms defined in the Note Purchase Agreement
and not otherwise defined herein are used herein as defined in the Note Purchase Agreement.

          WHEREAS, pursuant to the Note Purchase Agreement, the Grantor and certain other Persons have
executed and delivered that certain Guarantee and Collateral Agreement dated           ,       made by
the Grantor and such other Persons to the Collateral Agent (as amended, amended and restated,
supplemented or otherwise modified from time to time, the “Guarantee and Collateral Agreement”) and
that certain Intellectual Property Security Agreement dated           ,       (as amended, amended
and restated, supplemented or otherwise modified from time to time, the “IP Security Agreement”).

          WHEREAS, under the terms of the Guarantee and Collateral Agreement, the Grantor has granted to
the Collateral Agent, for the ratable benefit of the Secured Parties, a security interest in the
Additional Collateral (as defined in Section 1 below) of the Grantor and has agreed as a condition
thereof to execute this IP Security Agreement Supplement for recording with the U.S. Patent and
Trademark Office, the United States Copyright Office and other governmental authorities.

          NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the Grantor agrees as follows:

          SECTION 1. Grant of Security. Each Grantor hereby grants to the Collateral Agent, for
the ratable benefit of the Secured Parties, a security interest in all of such Grantor’s right,
title and interest in and to the following (the “Collateral”):

     (i) the patents and patent applications set forth in Schedule A hereto (the
“Patents”);

     (ii) the trademark and service mark registrations and applications set forth in
Schedule B hereto (provided that no security interest shall be granted in United
States intent-to-use trademark applications to the extent that, and solely during
the period in which, the grant of a security interest therein would impair the
validity or enforceability of such intent-to-use trademark applications under
applicable federal law), together with the goodwill symbolized thereby (the
“Trademarks”);

     (iii) the copyright registrations and applications and exclusive copyright
licenses set forth in Schedule C hereto (the “Copyrights”);

 

 

     (iv) all reissues, divisions, continuations, continuations-in-part, extensions,
renewals and reexaminations of any of the foregoing, all rights in the foregoing
provided by international treaties or conventions, all rights corresponding thereto
throughout the world and all other rights of any kind whatsoever of such Grantor
accruing thereunder or pertaining thereto;

     (v) all any and all claims for damages and injunctive relief for past, present
and future infringement, dilution, misappropriation, violation, misuse or breach
with respect to any of the foregoing, with the right, but not the obligation, to sue
for and collect, or otherwise recover, such damages; and

     (vi) any and all proceeds of, collateral for, income, royalties and other
payments now or hereafter due and payable with respect to, and supporting
obligations relating to, any and all of the foregoing or arising from any of the
foregoing.

          SECTION 2. Supplement to Guarantee and Collateral Agreement. Schedule 3 to the
Guarantee and Collateral Agreement is, effective as of the date hereof, hereby supplemented to add
to such Schedule the Additional Collateral.

          SECTION 3. Security for Obligations. The grant of a security interest in the
Additional Collateral by the Grantor under this IP Security Agreement Supplement secures the
payment of all Obligations of the Grantor now or hereafter existing under or in respect of the Note
Documents, whether direct or indirect, absolute or contingent, and whether for principal,
reimbursement obligations, interest, premiums, penalties, fees, indemnifications, contract causes
of action, costs, expenses or otherwise.

          SECTION 4. Recordation. The Grantor authorizes and requests that the Register of
Copyrights, the Commissioner for Patents and the Commissioner for Trademarks and any other
applicable government officer to record this IP Security Agreement Supplement.

          SECTION 5. Grants, Rights and Remedies. This IP Security Agreement Supplement has
been entered into in conjunction with the provisions of the Guarantee and Collateral Agreement.
The Grantor does hereby acknowledge and confirm that the grant of the security interest hereunder
to, and the rights and remedies of, the Collateral Agent with respect to the Additional Collateral
are more fully set forth in the Guarantee and Collateral Agreement, the terms and provisions of
which are incorporated herein by reference as if fully set forth herein.

          SECTION 6. Governing Law. This IP Security Agreement Supplement shall be governed by,
and construed in accordance with, the laws of the State of New York.

          IN WITNESS WHEREOF, the Grantor has caused this IP Security Agreement Supplement to be duly
executed and delivered by its officer thereunto duly authorized as of the date first above written.

	 	 	 	 	 
	 	[NAME OF GRANTOR]

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

ii

 

	 	 	 	 	 

	 	 	 	 	 
	 

	 	Address for Notices:	 	 
	 
	 	 	 	 
	 

	 	 

	 	 
	 

	 	 

	 	 
	 

	 	 

	 	 

iii

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