Document:

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                          SUBORDINATED PLEDGE AGREEMENT

         THIS SUBORDINATED PLEDGE AGREEMENT (this "Agreement") is made and
entered into as of October 8, 2003 by Advanced Cast Products, Inc., a Delaware
corporation, having an office at 2121 Brooks Avenue, Neenah, Wisconsin 54956
(the "Pledgor"), in favor of The Bank of New York, a New York banking
corporation, as Trustee (the "Trustee") for the noteholders (the "Noteholders")
under the Indenture (as defined below). The Trustee's address is 101 Barclay
Street, 8th Floor West, New York, New York 10286. Capitalized terms used and not
otherwise defined herein have the meanings assigned in the Indenture (as defined
below).

                              W I T N E S S E T H:

         WHEREAS, that certain Indenture (as amended, supplemented or otherwise
modified from time to time, the "Indenture") dated as of the date hereof by and
among the Neenah Foundry Company, a Wisconsin corporation ("Neenah Foundry"),
the Subsidiary Guarantors party thereto and the Trustee has been entered into
pursuant to which Neenah Foundry has issued its 11% senior secured notes due
September 30, 2010 (the "Senior Secured Notes") in the aggregate principal
amount of $133,130,000;

         WHEREAS, Pledgor is jointly and severally liable for all of the
Obligations of Neenah Foundry, itself and each other Subsidiary Guarantor under
the Indenture;

         WHEREAS, Pledgor owns 100% of the issued and outstanding capital stock
of Belcher Corporation, a Delaware corporation, and Peerless Corporation, an
Ohio corporation, (collectively, the "Issuers"), all as described on Schedule I
hereto; and

         WHEREAS, to secure repayment and performance of all of Pledgor's
obligations, liabilities and indebtedness under the Indenture (including the
Subsidiary Guarantee thereunder), Trustee and Noteholders have required that
Pledgor shall have made the pledge contemplated by this Agreement;

         NOW, THEREFORE, in consideration of the premises, Pledgor hereby agrees
with Trustee as follows:

         1. Pledge. Pledgor hereby pledges to Trustee, for its own benefit and
the benefit of the Noteholders, and grants to Trustee, for its own benefit and
the benefit of Noteholders, a security interest in:

        (a) the shares of stock of each "Issuer" identified on Schedule I hereto
    held by Pledgor (the "Pledged Shares") and the certificates representing
    the Pledged Shares, and all stock dividends, cash dividends, cash,
    instruments, chattel paper and other rights, property or proceeds and
    products from time to

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    time received, receivable or otherwise distributed in respect of or in
    exchange for any or all of the Pledged Shares;

        (b) all additional shares of stock of each Issuer at any time acquired
    by Pledgor in any manner, and the certificates representing such additional
    shares (and any such additional shares shall constitute part of the Pledged
    Shares under this Agreement), and all stock dividends, cash dividends, cash,
    instruments, chattel paper and other rights, property or proceeds and
    products from time to time received, receivable or otherwise distributed in
    respect of or in exchange for any or all of such shares; and

        (c) all proceeds of any of the foregoing (the assets described in this
    Section 1 are collectively referred to as, the "Pledged Collateral").

        (d) Notwithstanding anything in this Agreement to the contrary, the
    liens securing this Mortgage are subordinate in the manner and to the extent
    set forth in that certain Lien Subordination Agreement (the "Subordination
    Agreement") dated as of the date hereof among Trustee, Neenah Foundry and
    the other "Companies" (as defined therein) party thereto and Fleet Capital
    Corporation ("Agent"), to the liens securing the indebtedness (including
    interest) owed by the Companies pursuant to or in connection with that
    certain Loan and Security Agreement dated as of the date hereof among Neenah
    Foundry, certain of the other Companies, Agent and the lenders from time to
    time party thereto, as such Loan and Security Agreement may be amended,
    supplemented or otherwise modified from time to time and to indebtedness
    refinancing the indebtedness under such Loan and Security Agreement; and the
    Trustee (on behalf of itself and each Noteholder), by its acceptance hereof,
    irrevocably agrees to be bound by the provisions of the Subordination
    Agreement and each agreement made therein by the Trustee on its behalf.

         2. Security for Obligations. This Agreement and all of the Pledged
Collateral secure the payment and performance of the Obligations (as such term
is defined in the Indenture), together with all reasonable costs and expenses,
including, without limitation, all court costs and reasonable attorneys' and
paralegals' fees and expenses paid or incurred by Trustee or any Noteholder in
endeavoring to collect all or any part of the Obligations from, or in
prosecuting any action against Neenah Foundry, Pledgor or any other guarantor of
all or any part of the Obligations (all such indebtedness, obligations and
liabilities described in this Section 2 being collectively called the "Secured
Obligations").

         3. Delivery of Pledged Collateral. Subject to the Subordination
Agreement and the payment in full of the Senior Indebtedness (the "Loan
Agreement Termination"), all certificates or instruments representing or
evidencing the Pledged Collateral shall be delivered to and held by or on behalf
of Trustee pursuant hereto and shall be in suitable form for transfer by
delivery, or shall be accompanied by duly executed undated instruments of
transfer or assignment in blank, all in form and substance reasonably
satisfactory to Trustee. Prior to the Loan Agreement Termination, the Agent, and
after the Loan Agreement Termination, the Trustee, shall have the right, at any
time in its discretion and without notice to Pledgor following the occurrence
and during the continuance of an Event of Default, to transfer to or to register
in the name of Trustee or any of its nominees

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any or all of the Pledged Collateral. In addition, prior to the Loan Agreement
Termination, the Agent, and after the Loan Agreement Termination, the Trustee,
shall have the right to exchange certificates or instruments representing or
evidencing Pledged Collateral for certificates or instruments of smaller or
larger denominations.

         4. Representations and Warranties. In order to induce Trustee to enter
into this Agreement and the Indenture, Pledgor represents and warrants that the
following statements are true, correct and complete:

        (a) Schedule I hereto completely and accurately sets forth all of the
    issued and outstanding stock of each Issuer as of the date hereof. All
    shares of such stock are owned legally and beneficially by Pledgor and have
    been duly authorized and validly issued and are fully paid and
    nonassessable. There are no outstanding warrants, options, subscriptions or
    other contractual arrangements for the purchase of any other shares of stock
    or any securities convertible into shares of stock of any Issuer, and there
    are no preemptive rights with respect to the shares of stock of any Issuer.

        (b) Assuming that Agent or Trustee has taken and is retaining possession
    of the Pledged Shares in the State of Illinois, in the case of Agent, or in
    the State of New York, in the case of Trustee, as required in Section 3
    above and further assuming that Agent or Trustee, as the case may be
    pursuant to Section 3 above, has taken possession of the Pledged Shares
    without notice (actual or constructive) of any adverse claims in respect of
    the Pledged Shares, the delivery of the Pledged Shares to the Agent or
    Trustee, as the case may be pursuant to Section 3 above, is effective to
    create a valid and perfected first priority security interest in the Pledged
    Collateral, free of any adverse claim, securing the payment of the Priority
    Lien Obligations and, on a subordinated basis pursuant to the Subordination
    Agreement, the Secured Obligations.

        (c) Subject to the Subordination Agreement, no consent of any other
    party (including, without limitation, any creditor of Pledgor) and no
    consent, authorization, approval or other action by, and no notice to or
    filing with, any governmental authority or regulatory body is required
    either (i) for the pledge by Pledgor of the Pledged Collateral pursuant to
    this Agreement or for the execution, delivery or performance of this
    Agreement by Pledgor or (ii) for the exercise by Trustee of the voting or
    other rights provided for in this Agreement or the remedies in respect of
    the Pledged Collateral pursuant to this Agreement (except as has already
    been obtained or taken and except as may be required in connection with such
    disposition by laws affecting the offering and sale of securities
    generally).

        (d) None of the Pledged Shares constitutes margin stock, as defined in
    Regulation U of the Board of Governors of the Federal Reserve System.

        (e) This Agreement is the legal, valid and binding obligation of
    Pledgor, enforceable against Pledgor in accordance with its terms, except as

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    limited by applicable bankruptcy, reorganization, insolvency or similar laws
    affecting the enforcement of creditors' rights generally.

        (f) All information herein or hereafter supplied to Trustee by or on
    behalf of Pledgor with respect to the Pledged Collateral is and will be
    accurate and complete in all material respects.

         5. Further Assurances.

        (a) Subject to the Subordination Agreement, Pledgor will, from time to
    time, at Pledgor's expense, promptly execute and deliver all further
    instruments and documents and take all further action that is necessary, or
    that Trustee may reasonably request, in order to perfect and protect any
    security interest granted or purported to be granted hereby, to enable
    Trustee to exercise and enforce the rights and remedies of Trustee hereunder
    with respect to any Pledged Collateral or to carry out the provisions and
    purposes hereof. Without limiting the generality of the foregoing, Pledgor
    will: (i) execute and file such financing or continuation statements, or
    amendments thereto, and such other instruments or notices, as is necessary,
    or as Trustee may reasonably request, in order to perfect and preserve the
    security interests granted or purported to be granted hereby under the laws
    of any applicable jurisdiction or (ii) appear in and defend any action or
    proceeding that may affect Pledgor's title to or Trustee's security interest
    in the Pledged Collateral.

        (b) Pledgor will, promptly (and in any event within three Business Days)
    upon the purchase or acquisition of any additional shares of stock of each
    Issuer, deliver such Pledged Shares to the Agent or the Trustee, as the case
    may be pursuant to Section 3 above, together with a proxy substantially in
    the form attached hereto as Exhibit A, and a pledge amendment, duly executed
    by Pledgor, in substantially the form of Exhibit B hereto (a "Pledge
    Amendment"), in respect of the additional shares which are to be pledged
    pursuant to this Agreement. Pledgor hereby authorizes Trustee to attach each
    Pledge Amendment to this Agreement and agrees that all shares listed on any
    Pledge Amendment delivered to Trustee shall for all purposes hereunder be
    considered Pledged Collateral.

         6. Voting Rights; Dividends; Etc.

        (a) So long as no Event of Default shall have occurred and be continuing
    and Trustee shall not have delivered to Pledgor notice of its election to
    exercise the rights set forth in subsection (b) below:

            (i) Pledgor shall be entitled to exercise any and all voting and
        other consensual rights pertaining to the Pledged Collateral or any part
        thereof for any purpose not inconsistent with the terms of this
        Agreement or the Indenture.

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            (ii) Except as otherwise expressly permitted in the Indenture, any
        and all instruments, chattel paper and other rights, property or
        proceeds and products (other than cash or checks) received, receivable
        or otherwise distributed in respect of, or in exchange for, any Pledged
        Collateral, shall be and shall be forthwith delivered to, prior to the
        Loan Agreement Termination, the Agent, and after the Loan Agreement
        Termination, the Trustee, to hold as Pledged Collateral, and shall, if
        received by Pledgor, be received in trust for the benefit of Trustee, be
        segregated from the other property or funds of Pledgor, and be forthwith
        delivered to, prior to the Loan Agreement Termination, the Agent, and
        after the Loan Agreement Termination, the Trustee, as Pledged Collateral
        in the same form as so received (with any necessary endorsement).

            (iii) Trustee shall promptly upon request execute and deliver (or
        cause to be executed and delivered) to Pledgor all such proxies and
        other instruments as Pledgor may reasonably request for the purpose of
        enabling Pledgor to exercise the voting and other rights which Pledgor
        is entitled to exercise pursuant to paragraph (i) above, and to receive
        the dividends which Pledgor is authorized to receive and retain pursuant
        to paragraph (ii) above.

        (b) Subject to the Subordination Agreement, upon the occurrence and
    during the continuance of an Event of Default:

            (i) Except as otherwise expressly permitted in the Indenture, all
        rights of Pledgor to receive and retain any cash dividends and
        distributions pursuant to subsection 6(a)(ii), and to exercise the
        voting and other consensual rights which Pledgor would otherwise be
        entitled to exercise pursuant to subsection 6(a)(i), shall cease to be
        effective upon written notice by Trustee to Pledgor of Trustee's intent
        to exercise its rights hereunder, and upon delivery of such notice shall
        become vested in Trustee who shall thereupon have the sole right to
        exercise such voting and other consensual rights and the sole right to
        receive and hold as Pledged Collateral such dividends (and, to the
        extent permissible, apply them to payment of the Secured Obligations).
        In order to effect such transfer of rights, Trustee shall have the
        right, upon such notice, to date and present to the applicable Issuer an
        irrevocable proxy executed by Pledgor substantially in the form attached
        hereto as Exhibit A (a "Proxy").

            (ii) Except as expressly permitted in the Indenture, all dividends
        which are received by Pledgor contrary to the provisions of this
        subsection 6(b) shall be received in trust for the benefit of Trustee
        (for the benefit of Noteholders), shall be segregated from other funds
        of Pledgor and shall be forthwith paid over to, prior to the Loan
        Agreement Termination, the Agent, and after the Loan Agreement
        Termination, the Trustee, as Pledged Collateral in the same form as so
        received (with any necessary endorsement).

            7.   Transfers and Other Liens; Additional Shares.

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        (a) Other than for Priority Liens and Priority Lien Documents prior to
    the Loan Agreement Termination, Pledgor agrees that Pledgor will not (i)
    encumber, sell, assign (by operation of law or otherwise) or otherwise
    dispose of, or grant any option with respect to, any of the Pledged
    Collateral or (ii) enter into any other contractual obligations which could
    reasonably be expected to restrict or inhibit the right or ability of
    Trustee to sell or otherwise dispose of the Pledged Collateral or any part
    thereof after the occurrence and during the continuance of an Event of
    Default.

        (b) Pledgor agrees that if any Issuer issues any stock or other
    securities (including any warrants, options, subscriptions or other
    contractual arrangements for the purchase of stock or securities convertible
    into stock) in addition to or in substitution for the Pledged Shares,
    Pledgor will deliver, promptly (and in any event within three Business Days)
    upon its acquisition (directly or indirectly) thereof, any and all writings
    evidencing any additional Pledged Collateral to, prior to the Loan Agreement
    Termination, the Agent, and after the Loan Agreement Termination, the
    Trustee. Pledgor hereby authorizes Trustee to modify this Agreement by
    unilaterally amending Schedule I to include such shares of stock or other
    securities.

         8. Trustee Appointed Attorney-in-Fact. Subject to the Subordination
Agreement, Pledgor hereby irrevocably appoints Trustee as Pledgor's
attorney-in-fact effective upon the occurrence and during the continuance of an
Event of Default, with full authority in the place and stead of Pledgor and in
the name of Pledgor, Trustee or otherwise, from time to time in the discretion
of Trustee to take any action (including completion and presentation of any
proxy) and to execute any instrument that is necessary or advisable to
accomplish the purposes of this Agreement, including, without limitation, to (i)
receive, endorse and collect all instruments made payable to Pledgor
representing any dividend or other distribution in respect of the Pledged
Collateral or any part thereof; (ii) exercise the voting and other consensual
rights pertaining to the Pledged Collateral; and (iii) sell, transfer, pledge,
make any agreement with respect to or otherwise deal with any of the Pledged
Collateral as fully and completely as though Trustee was the absolute owner
thereof for all purposes, and to do, at the option of Trustee and at Pledgor's
expense, at any time or from time to time, all acts and things that are
necessary or that the Trustee deems necessary to protect, preserve or realize
upon the Pledged Collateral. Pledgor hereby ratifies and approves all acts of
Trustee made or taken in accordance with the terms of this Section 8. Except as
specifically set forth in Section 10 hereof or in the event of the gross
negligence or willful misconduct of Trustee, neither Trustee nor any person
designated by Trustee shall be liable for any acts or omissions or for any error
of judgment or mistake of fact or law. This power of attorney, being coupled
with an interest, shall be irrevocable until all Secured Obligations (other than
unasserted contingent indemnity obligations) shall have been paid in full and
the Indenture Documents shall have been terminated.

         9. Trustee May Perform. If Pledgor fails to perform any agreement
contained herein, Trustee may itself perform, or cause performance of, such
agreement, and the expenses of Trustee incurred in connection therewith shall be
a part of the Secured Obligations.

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         10. Limitation on Duty of Trustee with Respect to the Pledged
Collateral. The powers conferred on Trustee hereunder are solely to protect its
interest in the Pledged Collateral and shall not impose any duty on it to
exercise any such powers. Except for the safe custody of any Pledged Collateral
in its possession and the accounting for monies actually received by it
hereunder, Trustee shall have no duty with respect to any Pledged Collateral.
Trustee shall be deemed to have exercised reasonable care in the custody and
preservation of the Pledged Collateral in its possession if the Pledged
Collateral is accorded treatment that is substantially equivalent to that which
a reasonably prudent person in the industry accords to such property, it being
expressly agreed that Trustee shall have no responsibility for (i) ascertaining
or taking action with respect to calls, conversions, exchanges, maturities,
tenders or other matters relative to any Pledged Collateral, whether or not
Trustee has or is deemed to have knowledge of such matters, or (ii) taking any
necessary steps to preserve rights against any parties with respect to any
Pledged Collateral, but Trustee may do so and all expenses incurred in
connection therewith shall be payable by and for the sole account of Pledgor.

         11. Remedies upon Event of Default. Subject to the Subordination
Agreement, if any Event of Default shall have occurred and be continuing:

        (a) Trustee may exercise in respect of the Pledged Collateral, in
    addition to other rights and remedies provided for herein or otherwise
    available to it, all of the rights and remedies of a secured party under the
    Uniform Commercial Code (the "UCC") in the State of New York, whether or not
    the UCC applies to the affected Pledged Collateral, and Trustee may also,
    without notice except as specified below, sell 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 office of Trustee or elsewhere, for cash,
    on credit, or for future delivery, at such price or prices and upon such
    other terms as Trustee deems commercially reasonable. Pledgor acknowledges
    and agrees that such a private sale may result in prices and other terms
    which may be less favorable to the seller than if such sale were a public
    sale. Pledgor agrees that, to the extent notice of sale shall be required by
    law, at least ten (10) days' notice to Pledgor of the time and place of any
    public sale or the time after which any private sale is to be made shall
    constitute reasonable notification. At any sale of the Pledged Collateral,
    if permitted by law, Trustee, on behalf of Noteholders, may bid (which bid
    may be, in whole or in part, in the form of cancellation of indebtedness)
    for the purchase of the Pledged Collateral or any portion thereof. Trustee
    shall not be obligated to make any sale of Pledged Collateral regardless of
    notice of sale having been given. Trustee 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. Trustee shall be under no obligation to delay a
    sale of any of the Pledged Collateral for the period of time necessary to
    permit the issuing corporation of such securities to register such
    securities for public sale under the Securities Act of 1933, as from time to
    time amended (the "Securities Act"), or under applicable state securities
    laws,

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    even if the issuing corporation would agree to do so. To the extent
    permitted by law, Pledgor hereby specifically waives all rights of
    redemption, stay or appraisal which Pledgor has or may have under any law
    now existing or hereafter enacted.

        (b) Except as expressly permitted in the Indenture and in this
    Agreement, all cash proceeds received by Trustee in accordance with the
    terms hereof in respect of any sale of, collection from, or other
    realization upon all or any part of the Pledged Collateral may, in the
    discretion of Trustee, be held by Trustee as collateral for, and/or then or
    at any time thereafter applied (after payment of any amounts payable to
    Trustee pursuant to the terms of the Indenture) in whole or in part by
    Trustee against all or any part of the Secured Obligations in accordance
    with the provisions of Section 13. Any surplus of such cash or cash proceeds
    held by Trustee and remaining after payment in full of all the Secured
    Obligations shall be paid over to Pledgor or to whomsoever may be lawfully
    entitled to receive such surplus or as a court of competent jurisdiction may
    direct; provided, that in the event that all of the conditions to the
    termination of this Agreement pursuant to Section 14 shall not have been
    fulfilled, such balance shall be held and applied from time to time as
    provided in this subsection 11(b) until all such conditions shall have been
    fulfilled.

        (c) Pledgor recognizes that Trustee may be unable to effect a public
    sale of all or part of the Pledged Collateral and may be compelled to resort
    to one or more private sales to a restricted group of purchasers who will be
    obligated to agree, among other things, to acquire such Pledged Collateral
    for their own account, for investment and not with a view to the
    distribution or resale thereof. Pledgor acknowledges that any such private
    sales may be at prices and on terms less favorable to the seller than if
    sold at public sales and agrees that such private sales shall be deemed to
    have been made in a commercially reasonable manner, and that Trustee has no
    obligation to delay sale of any such Pledged Collateral for the period of
    time necessary to permit each issuer of such Pledged Collateral to register
    such Pledged Collateral for public sale under the Securities Act.

         12. Remedies Cumulative. No failure on the part of Trustee to exercise,
and no delay in exercising and no course of dealing with respect to, any power,
privilege or right under the Indenture, the other Collateral Documents or this
Agreement (collectively, the "Indenture Documents") shall operate as a waiver
thereof; nor shall any single or partial exercise by Trustee of any power,
privilege or right under any of the other Indenture Documents or this Agreement
preclude any other or further exercise thereof or the exercise of any other such
power, privilege or right. The powers, privileges and rights in this Agreement
and the other Indenture Documents are cumulative and are not exclusive of any
other remedies provided by law.

         13. Application of Proceeds. Subject to the Subordination Agreement,
upon the occurrence and during the continuance of an Event of Default, the
proceeds of any

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sale of, or other realization upon, all or any part of the
Pledged Collateral shall be applied in the manner set forth in the Indenture.

         14. Termination of Security Interests; Release of Collateral. Upon
payment and performance in full of all Secured Obligations (other than
unasserted contingent indemnity obligations) and termination of the Indenture in
accordance with its terms, the security interests granted herein shall terminate
and all rights to the Pledged Collateral shall revert to Pledgor. Upon such
termination of the security interests or release of any Pledged Collateral,
Trustee will, at the expense of Pledgor, and subject to Section 20 herein,
promptly execute and deliver to Pledgor such documents as Pledgor shall
reasonably request to evidence the termination of the security interests or the
release of such Pledged Collateral which has not yet theretofore been sold or
otherwise applied or released. Such release shall be without recourse or
warranty to Trustee, except as to the absence of any prior assignments by
Trustee of its interest in the Pledged Collateral.

         15. Amendments, Waivers and Consents. No amendment, modification,
termination or waiver of any provision of this Agreement, or consent to any
departure by Pledgor therefrom, shall in any event be effective without the
written concurrence of Trustee and Pledgor.

         16. Notices. Any notice, approval, request, demand, consent or other
communication hereunder, including any notice of default or notice of sale,
shall be given to Pledgor or Trustee at the applicable address set forth above
(or to such other address previously designated by written notice to the serving
party) in accordance with the notice provision of the Indenture.

         17. Continuing Security Interest; Successors and Assigns. This
Agreement shall create a continuing security interest in the Pledged Collateral
and shall (i) remain in full force and effect until payment and performance in
full of all Secured Obligations (other than unasserted contingent indemnity
obligations) and termination of the Indenture, (ii) be binding upon Pledgor, its
successors and assigns, and (iii) inure, together with the rights and remedies
of Trustee hereunder, to the benefit of Trustee and its successors and assigns.
Pledgor may not assign or transfer any of its interests or obligations hereunder
without the prior consent of Trustee.

         18. Waiver.

        (a) In addition to any other waivers herein, Pledgor waives to the
    greatest extent it may lawfully do so, and agrees that it shall not at any
    time insist upon, plead or in any manner whatever claim or take the benefit
    or advantage of, any appraisal, valuation, stay, extension, marshalling of
    assets, redemption or similar law, or exemption, whether now or at any time
    hereafter in force, which may delay, prevent or otherwise affect the
    performance by Pledgor of its obligations under, or the enforcement by
    Trustee of, this Agreement. Pledgor hereby waives diligence, presentment and
    demand (whether for nonpayment or protest or of acceptance, maturity,
    extension of time, change in nature or form of the Secured Obligations,
    acceptance of

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    further security, release of further security, composition or agreement
    arrived at as to the amount of, or the terms of the Secured Obligations,
    notice of adverse change in any Issuer's or any other Person's financial
    condition or any other fact which might materially increase the risk to
    Pledgor) with respect to any of the Secured Obligations or all other demands
    whatsoever and, to the fullest extent permitted by law, waives the benefit
    of all provisions of law which are or might be in conflict with the terms of
    this Agreement.

        (b) If Trustee may, under applicable law, proceed to realize its
    benefits under any of the Indenture Documents giving Trustee a Lien upon any
    Collateral, whether owned by any Issuer or by any other Person, either by
    judicial foreclosure or by non-judicial sale or enforcement, Trustee may, at
    its sole option, determine which of its remedies or rights it may pursue
    without affecting any of the rights and remedies of Trustee under this
    Agreement.

         19. Subrogation. Subject to, and solely effective following, the
payment in full in cash of all Obligations (other than unasserted contingent
indemnity obligations), Pledgor shall be subrogated to the rights of the
Noteholders to receive payments and distributions of cash, property and
securities applicable to such Obligations. For purposes of such subrogation, no
payments or distributions to the Noteholders of any cash, property or securities
to which the Noteholders would be entitled except for this provision, and no
payments over pursuant to the provisions of this paragraph to the Noteholders by
Pledgor shall, as among each Issuer (as defined in the Indenture) or any
Subsidiary Guarantor, their respective creditors (other than holders of such
Obligations) and Pledgor be deemed to be a payment or distribution by such
Issuer (as defined in the Indenture) or any Subsidiary Guarantor to or on
account of such Obligations.

         20. Reinstatement. This Agreement shall continue to be effective or be
reinstated, as the case may be, if at any time any amount received by Trustee or
any Noteholder in respect of the Secured Obligations is rescinded or must
otherwise be restored or returned by Trustee or any Noteholder upon the
insolvency, bankruptcy, dissolution, liquidation or reorganization of Pledgor or
any Issuer or upon the appointment of any intervenor or conservator of, or
trustee or similar official for, Pledgor or any Issuer or any substantial part
of its assets, or otherwise, all as though such payments had not been made.

         21. Severability. The provisions of this Agreement are severable, and
if any clause 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 clause or provision, or part thereof, in such jurisdiction and shall
not in any manner affect such clause or provision in any other jurisdiction, or
any other clause or provision of this Agreement in any jurisdiction.

         22. Interpretation. Time is of the essence of each provision of this
Agreement of which time is an element. All terms not defined herein or in the
Indenture shall have the meanings set forth in the UCC, except where the context
otherwise requires. To the extent any term or provision of this Agreement
conflicts with the provisions of the

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Indenture and is not dealt with more specifically herein, the Indenture shall
control with respect to such term or provision.

         23. Survival of Provisions. All agreements, representations and
warranties made herein shall survive the execution and delivery of this
Agreement and the Indenture, the issuance of Notes thereunder and the execution
and delivery of the Notes. Notwithstanding anything in this Agreement or implied
by law to the contrary, the agreements, representations and warranties of
Pledgor set forth herein shall terminate only upon payment of the Secured
Obligations and the termination of this Agreement in accordance with its terms.

         24. Statute of Limitations. Pledgor hereby waives the right to plead
any statute of limitations as a defense to any indebtedness or obligation
hereunder or secured hereby to the full extent permitted by law.

         25. Headings Descriptive. The headings in this Agreement are for
convenience of reference only and shall not constitute a part of this Agreement
for any other purpose or be given any substantive effect.

         26. Counterparts. This Agreement may be executed in one or more
counterparts, each of which shall be deemed an original but all of which shall
together constitute one and the same agreement.

         27. GOVERNING LAW. THIS AGREEMENT IS GOVERNED BY, AND SHALL BE
CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE OF NEW
YORK, WITHOUT REGARD TO CONFLICTS OF LAWS PRINCIPLES.

         28. WAIVER OF JURY TRIAL; JURISDICTION. PLEDGOR HEREBY CONSENTS TO THE
JURISDICTION OF STATE OR FEDERAL COURT LOCATED WITHIN NEW YORK COUNTY, NEW YORK
AND WAIVES ANY OBJECTION WHICH IT MAY HAVE BASED ON IMPROPER VENUE OR FORUM NON
CONVENIENS TO THE CONDUCT OF ANY PROCEEDING IN ANY SUCH COURT AND CONSENTS THAT
ALL SERVICE OF PROCESS UPON PLEDGOR BE MADE BY REGISTERED MAIL OR MESSENGER
DIRECTED TO PLEDGOR AT THE ADDRESS SET FORTH ABOVE AND THAT SERVICE SO MADE
SHALL BE DEEMED TO BE COMPLETED UPON ACTUAL RECEIPT THEREOF. PLEDGOR AND TRUSTEE
EACH HEREBY WAIVE, TO THE EXTENT PERMITTED BY LAW, TRIAL BY JURY. NOTHING
CONTAINED HEREIN SHALL AFFECT THE RIGHT OF TRUSTEE TO SERVE LEGAL PROCESS IN ANY
OTHER MANNER PERMITTED BY LAW OR AFFECT THE RIGHT OF TRUSTEE TO BRING ANY ACTION
OR PROCEEDING AGAINST PLEDGOR OR ITS PROPERTY IN THE COURTS OF ANY OTHER
JURISDICTION.

                                       11
<PAGE>

         29. Incorporation By Reference. In connection with its appointment and
acting hereunder the Trustee is entitled to all rights, privileges, benefits,
protections, immunities and indemnities provided to it under the Indenture.

                                       12
<PAGE>

         IN WITNESS WHEREOF, Pledgor has caused this Pledge Agreement to be duly
executed and delivered as of the day and year first above written.

                                  ADVANCED CAST PRODUCTS, INC.

                                  By: /s/ Gary LaChey
                                      ------------------------------------------
                                  Title: VP-Finance, Treasurer, Secty. & CFO
                                         ---------------------------------------

         By acceptance hereof as of this 8th day of October, 2003, Trustee
agrees to be bound by the provisions hereof.

                                  BANK OF NEW YORK, as Trustee

                                  By: /s/ Patricia Gallagher
                                      ------------------------------------------
                                  Title: Vice President
                                         ---------------------------------------

                                       13
<PAGE>

                                   SCHEDULE I
                               TO PLEDGE AGREEMENT

<TABLE>
<CAPTION>                                       STOCK
                              TYPE AND       CERTIFICATE                   NUMBER
ISSUER OF PLEDGED STOCK    CLASS OF STOCK      NUMBERS      PAR VALUE     OF SHARES    PERCENTAGE
-----------------------    ---------------   ------------   ----------    ---------    ----------

<S>                        <C>               <C>            <C>           <C>             <C>
Belcher Corporation.                                                                      100%
Peerless Corporation                                                                      100%

</TABLE>

<PAGE>

                                    EXHIBIT A

                                Irrevocable Proxy

         The undersigned hereby appoints Bank of New York, as Trustee
("Trustee") as proxy with full power of substitution, and hereby authorizes
Trustee to represent and vote all of the shares of the capital stock of
__________________________, held of record by the undersigned on the date of
exercise hereof or at any meeting or at any other time chosen by Trustee in its
sole discretion, but only at the times provided in that certain Pledge Agreement
dated as of October 8, 2003, executed by the undersigned in favor of Trustee.

Dated:  ___________ __, 2003

                                        ADVANCED CAST PRODUCTS, INC.

                                        By______________________________________

                                        Title___________________________________

<PAGE>

                                    EXHIBIT B

                                Pledge Amendment

         This Pledge Amendment, dated ___________________ is delivered pursuant
to Section 5(c) of the Pledge Agreement referred to below. The undersigned
hereby agrees that this Pledge Amendment may be attached to the Pledge
Agreement, dated as of October 8, 2003, between the undersigned and Bank of New
York, as trustee (the "Pledge Agreement"; capitalized terms defined therein
being used herein as therein defined) and that the shares listed on this Pledge
Amendment shall be deemed to be part of the Pledged Collateral and shall secure
all Secured Obligations.

Dated:  __________, 200__
                                        ADVANCED CAST PRODUCTS, INC.

                                        By______________________________________

                                        Title___________________________________

<TABLE>
<CAPTION>
    STOCK ISSUER      CLASS OF STOCK      STOCK CERTIFICATE NO(S).     PAR VALUE     NUMBER OF SHARES
    ------------      --------------      ------------------------     ---------     -----------------
<S>                   <C>                 <C>                          <C>           <C>

</TABLE>

<PAGE>

                      ASSIGNMENT SEPARATE FROM CERTIFICATE

         FOR VALUE RECEIVED, _________________, a _______________ corporation,
hereby sells, assigns and transfers unto Bank of New York, as trustee
_____________ (_____) Shares of the common stock of _____________________, a
_____________ corporation (the "Corporation"), standing in its name on the books
of the Corporation represented by Certificate(s) No. ____________________
herewith and does hereby irrevocably constitute and appoint ____________________
attorney to transfer the said stock on the books of the Corporation with full
power of substitution in the premises.

Dated:  _____________

                                        ADVANCED CAST PRODUCTS, INC.

                                        By______________________________________

                                        Title___________________________________<PAGE>
                                                                   Exhibit 10.2

                                                              EXECUTION VERSION

                             SUBSCRIPTION AGREEMENT

         AGREEMENT, dated as of October 7, 2003, by and among MacKay Shields
LLC, Citicorp Mezzanine III, L.P., TCW Shared Opportunity Fund II, L.P., Shared
Opportunity Fund IIB LLC, TCW Shared Opportunity Fund IV, L.P., TCW Shared
Opportunity Fund IVB, L.P., AIMCO CDO, Series 2000-A, TCW High Income Partners,
Ltd., TCW High Income Partners II, Ltd., Metropolitan Life Insurance Company and
Exis Differential Holdings, Ltd. (collectively, together with their respective
Affiliates, the "INVESTORS" and each an "INVESTOR"), and ACP Holding Company, a
Delaware corporation ("ACP HOLDING"), Neenah Foundry Company, a Wisconsin
corporation (the "COMPANY"), and the Subsidiary Guarantors listed on the
signature page hereto.

                                   WITNESSETH:

         WHEREAS, on August 5, 2003 (the "FILING DATE"), ACP Holding, NFC
Castings, Inc., a Delaware corporation ("NFC CASTINGS"), the Company and the
Company's Subsidiaries filed voluntary petitions in the United States Bankruptcy
Court in the Southern District of New York (the "BANKRUPTCY COURT") under
chapter 11 (the "CHAPTER 11 CASES") of Title 11 of the United States Code (the
"BANKRUPTCY CODE"), and will seek Bankruptcy Court approval of the plan of
reorganization substantially in the form attached hereto as Exhibit A (the
"PLAN");

         WHEREAS, on August 28, 2003, the Bankruptcy Court entered an order (a)
approving the Commitment Letter (as hereinafter defined) entered into between
the Company and the Investors on June 30, 2003 solely with respect to Investors
who were not existing equity holders of the Company as of the Filing Date, and
(b) providing that the Company and the Investors could enter into a subscription
agreement and any related documents without further approval of the Bankruptcy
Court;

         WHEREAS, the Plan provides that the holders of allowed unsecured claims
in Class 6, including the Investors (such claim holders, including the
Investors, eligible to purchase Units under the Plan being referred to as the
"PARTICIPATING HOLDERS"), shall have the right, but not the obligation, to
purchase in accordance with Article IV and related definitions of the Plan (as
amended in accordance with Section 5.06 herein) (the "RIGHTS OFFERING") an
aggregate of 119,996 Units (the "MAXIMUM UNITS"), at a purchase price per Unit
of $916.70 (the "UNIT PURCHASE PRICE");

         WHEREAS, to ensure the purchase of all Maximum Units, each of the
Investors has determined to (i) exercise in full its right under the Rights
Offering to purchase its pro rata share of the Maximum Units and (ii) subscribe
for any and all Units not purchased by the Participating Holders (other than the
Investors) up to the maximum number of Units set forth opposite the name of such
Investor on Schedule I hereto.

         NOW, THEREFORE, the parties hereto agree as follows:

<PAGE>

                                    ARTICLE I
                                   DEFINITIONS

         Section 1.01 Definitions. (a) The following terms, as used herein, have
the following meanings:

         "AFFILIATE" means, with respect to any Person, any other Person
directly or indirectly controlling, controlled by, or under common control with
such Person. For purposes of this definition, control of a Person shall mean the
power, direct or indirect, to direct or cause the direction of the management
and policies of such Person whether by contract or otherwise and the terms
"controlling" and "controlled" shall have meanings correlative to the foregoing.

         "BUSINESS DAY" means 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. Any event the scheduled occurrence of which would fall on a day that is
not a Business Day shall be deferred until the next succeeding Business Day.

         "COMMITMENT LETTER" means the standby funding commitment letter
(including all exhibits and annexes thereto), dated June 30, 2003, among the
Investors and the Company.

         "COMMON STOCK" means shares of Common Stock, par value $.01 per share
of Reorganized ACP Holding.

         "CONFIDENTIALITY AGREEMENT" means the confidentiality agreement entered
into among the Investors and the Company dated as of May 13, 2003.

          "CREDIT AGREEMENT" means the Credit Agreement, dated the Closing Date,
among the Company, certain of the Subsidiary Guarantors party thereto, the
lenders from time to time party to such agreement, Fleet Capital Corporation, as
Agent and Fleet Securities, Inc., as Arranger, including any related notes,
collateral documents, letters of credit and documentation and guarantees and any
appendices, exhibits or schedules to any of the foregoing, as well as any and
all of such agreements (and any other agreements that refinance any and all such
agreements), as may be amended, restated, modified or supplemented from time to
time, or renewed, refunded, refinanced, restructured, replaced, repaid or
extended from time to time (including increases in principal amount), whether
with the original agents and lenders or with other agents or lenders.

         "EBITDA" means the sum of the net income of the Company and its
consolidated Subsidiaries, plus interest, taxes, depreciation and amortization,
each as reflected on the Company's income statement for the applicable
measurement period.

         "EFFECTIVE DATE" means the date on which the Plan becomes Effective.

         "GOVERNMENTAL AUTHORITY" means any nation or government , any state or
other political subdivision thereof, and any agency, department or other entity
exercising executive, legislative, judicial, regulatory or administrative
functions of or pertaining to government.

         "INDENTURES" means the Senior Secured Notes Indenture and the Senior
Subordinated Notes Indenture

                                       2
<PAGE>

          "LIEN" means, with respect to any property or asset, any mortgage,
lien, pledge, charge, security interest, encumbrance or other adverse claim of
any kind in respect of such property or asset. For the purposes of this
Agreement, a Person shall be deemed to own subject to a Lien any property or
asset which it has acquired or holds subject to the interest of a vendor or
lessor under any conditional sale agreement, capital lease or other title
retention agreement relating to such property or asset.

         "LIEN SUBORDINATION AGREEMENT" means that certain Lien Subordination
Agreement, dated the Closing Date, by and among the Company, certain of the
Company's Subsidiaries and the other parties thereto, as amended (including any
amendments and restatements thereof), supplemented or otherwise modified from
time to time.

         "MATERIAL ADVERSE EFFECT" means (i) a material adverse effect on the
business, condition (financial or otherwise), operation, performance or
properties of the Representing Persons taken as a whole, (ii) a material adverse
effect on the rights and remedies of the Investors under the Transaction
Documents, or (iii) the material impairment of the ability of the Representing
Persons (taken as a whole) to perform their obligations hereunder or under any
Transaction Document.

         "NEW FACILITIES" means the Term Loan and the Revolver.

         "OPTION" with respect to any Person means any security, right,
subscription, warrant, option, "phantom" stock right or other contract that
gives the right to (i) purchase or otherwise receive or be issued any shares of
capital stock of such Person or any security of any kind convertible into or
exchangeable or exercisable for any shares of capital stock of such Person or
(ii) receive or exercise any benefits or rights similar to any rights enjoyed by
or accruing to the holder of shares of capital stock of such Person, including
any rights to participate in the equity or income of such Person or to
participate in or direct the election of any directors or officers of such
Person or the manner in which any shares of capital stock of such Person are
voted.

         "PERMITTED LIENS" means Liens which do not materially detract from the
value of any property (whether real, personal, tangible or intangible) of ACP
Holdings, NFC Castings, the Company or the Company's Subsidiaries or materially
interfere with any present or intended use of such property.

         "PERSON" means an individual, corporation, partnership, limited
liability company, association, trust or other entity or organization, including
a government or political subdivision or an agency or instrumentality thereof.

         "PLAN TERM SHEET" means the Terms of Plan of Reorganization attached as
Exhibit B to the Commitment Letter.

         "REGISTRATION RIGHTS AGREEMENTS" means the Senior Secured Notes
Registration Rights Agreement, the Senior Subordinated Notes Registration Rights
Agreement and the Warrant Registration Rights Agreement.

         "REORGANIZED ACP HOLDING" means ACP Holding, as reorganized pursuant to
the Chapter 11 Cases.

                                       3
<PAGE>

         "REORGANIZED DEBTOR" means each of ACP Holding, the Company and the
Subsidiary Guarantors, each as reorganized pursuant to the Chapter 11 Cases.`

         "REPRESENTING PERSONS" means ACP Holding, the Company and the
Subsidiary Guarantors.

         "RESTATED BYLAWS" means the amended and restated bylaws of the ACP
Holding which is in the form attached hereto as Exhibit B.

         "RESTATED CERTIFICATE OF INCORPORATION" means the amended and restated
certificate of incorporation of ACP Holding to be filed with the Secretary of
State of the State of Delaware, which is in the form attached hereto as Exhibit
C.

         "REVOLVER" means the revolving credit facility extended to the Company
as part of the New Facilities under the Credit Agreement.

         "SENIOR SECURED NOTES" means the Company's 11% Senior Second Secured
Notes due 2010 to be issued pursuant to the terms of the Plan.

         "SENIOR SECURED NOTES INDENTURE" means the Indenture, dated the Closing
Date, among the Company the Subsidiary Guarantors and The Bank of New York, as
trustee, governing the Senior Secured Notes.

         "SENIOR SECURED NOTES REGISTRATION RIGHTS AGREEMENT" means the
Registration Rights Agreement, dated the Closing Date, among the Company, the
Subsidiary Guarantors and the Investors, substantially in the form attached
hereto as Exhibit D-1.

         "SENIOR SUBORDINATED NOTES" means the Company's 13% Senior Subordinated
Notes due 2013 to be issued pursuant to the terms of the Plan.

         "SENIOR SUBORDINATED NOTES INDENTURE" means the Indenture, dated the
Closing Date, among the Company the Subsidiary Guarantors and The Bank of New
York, as trustee, governing the Senior Subordinated Notes.

         "SENIOR SUBORDINATED NOTES REGISTRATION RIGHTS AGREEMENT" means the
Registration Rights Agreement, dated the Closing Date, among the Company, the
Subsidiary Guarantors and the Investors, substantially in the form attached
hereto as Exhibit D-2.

         "STOCKHOLDERS AGREEMENT" means the Stockholders Agreement, dated the
Closing Date, among ACP Holding and the stockholders party thereto.

         "SUBSIDIARY" of any Person means any entity of which securities or
other ownership interests having ordinary voting power to elect a majority of
the board of directors or other persons performing similar functions are at the
time directly or indirectly owned by such Person.

         "SUBSIDIARY GUARANTEES" means the guarantees on the terms set forth in
the Indentures by a Subsidiary Guarantor of the Company's obligations with
respect to the Senior Secured Notes and the Senior Subordinated Notes, as
applicable.

                                       4
<PAGE>

         "SUBSIDIARY GUARANTOR" means each Subsidiary which is organized under
the laws of the United States of America or any state thereof or the District of
Columbia, and executes and delivers a Subsidiary Guarantee pursuant to the terms
of the Indentures.

         "TERM LOAN" means the term loan made to the Company as part of the New
Facilities under the Credit Agreement.

         "TERMINATION EVENT" means any of the events described in Section
10.1(e).

         "TRANSACTION DOCUMENTS" means this Agreement, the Indentures, the
Senior Secured Notes (including related Subsidiary Guarantees), the Senior
Subordinated Notes (including related Subsidiary Guarantees), the Warrant
Agreement, the Warrants, the Stockholders Agreement, the Registration Rights
Agreements, the Restated Certificate of Incorporation, the Restated Bylaws, the
Credit Agreement, the New Facilities, the Lien Subordination Agreement and any
other agreement to be entered into in accordance with the terms hereof.

         "UNIT" means a unit of securities consisting of (i) $1,000 in principal
amount of Senior Secured Notes of the Company and related Subsidiary Guarantees,
and (ii) Warrants to purchase 285.41256 shares of Common Stock of ACP Holding
(subject to rounding down or up to the nearest whole number).

         "WARRANTS" means warrants, to purchase an aggregate of 38,000,000
shares of Common Stock of Reorganized ACP Holdings, which are to be issued
pursuant to the Warrant Agreement.

         "WARRANT AGREEMENT" means the Warrant Agreement, dated the Closing
Date, by and between ACP Holding and The Bank of New York, as warrant agent.

         "WARRANT REGISTRATION RIGHTS AGREEMENT" means the Registration Rights
Agreement, dated the Closing Date, among ACP Holding and the Investors,
substantially in the form attached hereto as Exhibit D-3.

         (b)      Each of the following terms is defined in the Section set
forth opposite such term:

<TABLE>
<CAPTION>
       TERM                                                               SECTION
       ----                                                               -------
<S>                                                                       <C>
ACP Holding                                                               Preamble
Automatic Stay                                                            10.01
Bankruptcy Code                                                           Recitals
Bankruptcy Court                                                          Recitals
Chapter 11 Cases                                                          Recitals
Closing                                                                   2.02(a)
Closing Date                                                              2.02(a)
Company                                                                   Preamble
Damages                                                                   9.02
Electing Investor                                                         2.01(b)
Expense Obligations                                                       2.02(c)
Expenses                                                                  2.02(c)
Filing Date                                                               Recitals
</TABLE>

                                       5
<PAGE>

<TABLE>
<CAPTION>
       TERM                                                               SECTION
       ----                                                               -------
<S>                                                                       <C>
Indemnification Obligations                                               9.02(a)
Indemnified Parties                                                       9.03
Indemnifying Parties                                                      9.03
Information                                                               3.10
Investor(s)                                                               Preamble
Material Adverse Change                                                   3.06
Maximum Units                                                             Recitals
NFC Castings                                                              Recitals
Nonpurchased Units                                                        2.01(b)
Nonpurchasing Investor                                                    2.01(b)
Participating Holders                                                     Recitals
Plan                                                                      Recitals
Representatives                                                           9.02
Rights Offering                                                           Recitals
Securities Act                                                            4.07
Third Party Claims                                                        9.03
Unit Purchase Price                                                       Recitals
Unsubscribed Units                                                        2.01(a)
</TABLE>

                                   ARTICLE II
                                PURCHASE AND SALE

                  Section 2.01 Purchase and Subscription of Units; Standby
         Commitment; Subscription Price. (a) In accordance with the Commitment
         Letter and the applicable provisions of the Plan (i) each of ACP
         Holding and the Company hereby agrees to cause the Rights Offering to
         be made in accordance with the applicable provisions of the Plan and
         (ii) each of the Investors hereby agrees to (A) exercise in full its
         right under the Rights Offering to purchase its pro rata share of the
         Maximum Units and (B) on the basis of the representations, warranties,
         covenants and agreements contained in this Agreement, subscribe for and
         purchase its pro rata share (based on the percentage set forth opposite
         the name of such Investor on Schedule I hereto) of any and all Units
         not purchased by the Participating Holders (other than the Investors)
         (the "UNSUBSCRIBED UNITS") up to the maximum number of Units set forth
         opposite the name of such Investor on Schedule I hereto, at a purchase
         price per Unit equal to the Unit Purchase Price. The aggregate Unit
         Purchase Price will be payable in immediately available funds at the
         Closing in the manner provided in Section 2.02.

         (b)      The obligations of the Investors to subscribe for the Units
are several, and not joint, obligations. No Investor guarantees, or has any
other obligation relating to, the obligation of any other Investor to purchase
any Units hereunder. Notwithstanding the foregoing, in the event any Investor (a
"NONPURCHASING INVESTOR") fails, for any reason, to purchase any of the Units to
be purchased by such Nonpurchasing Investor hereunder (the "NONPURCHASED
UNITS"), the other Investors shall have the right, but not the obligation, to
purchase such Nonpurchased Units. Each Investor, who elects to purchase such
Nonpurchased Units (an "ELECTING INVESTOR"), shall have the right to purchase
such number of Nonpurchased Units calculated by multiplying the number of
Nonpurchased Units by a fraction the numerator of which is the maximum number of
Units such Electing Investor has agreed to purchase

                                       6
<PAGE>

hereunder as set forth opposite the name of such Electing Investor on Schedule I
hereto and the denominator of which is the maximum number of Units which all
Electing Investors have agreed to purchase hereunder as set forth opposite the
names of such Electing Investors on Schedule I hereto. In the event Electing
Investors elect to purchase all of the Nonpurchased Units, any failure of any
condition to ACP Holding's and the Company's obligations arising as a result of
any Nonpurchasing Investor's breach of this Agreement will be deemed waived and
ACP Holding and the Company shall have no right to terminate this Agreement
based on such breach.

         (c)      The Investors acknowledge that on June 30, 2003, the Company
paid to the Investors $1,100,000, representing 20% of the total Commitment Fee
(as defined and provided for in the Commitment Letter). The Company agrees that
such $1,100,000 shall not be refundable nor form the basis of any defense,
setoff, or recoupment claim under any circumstances, regardless of whether the
transactions contemplated by this Agreement and the other Transaction Documents
are consummated.

                  Section 2.02 Closing; Expenses. (a) The closing of the
         subscription for, and purchase of, the Units under this Agreement (the
         "CLOSING") will take place at the offices of Goldberg, Kohn, Bell,
         Black, Rosenbloom & Moritz, Ltd., 55 East Monroe Street, Chicago,
         Illinois 60603, at 10:00 A.M., local time, on the Effective Date,
         provided that each condition set forth in Article VIII has been
         satisfied or waived, unless another time, date or place is agreed to in
         writing by ACP Holding, the Company and the Investors (the "CLOSING
         DATE").

         (b)      At the Closing,

                           (i)      the Reorganized Debtors will deliver to each
                  Investor one or more (as designated by such Investor) duly
                  executed certificates to be dated the Closing Date evidencing
                  (A) the Senior Secured Notes and related Subsidiary Guarantees
                  and (y) the Warrants; provided that, any Investor may notify
                  the Company in writing prior to such issuance, but not later
                  than two (2) Business Days before the Closing Date, that it
                  desires such certificates to be issued in other denominations
                  or registered in the name or names of any of its Affiliates or
                  designees, in which case the certificates shall be issued in
                  the denominations and registered in the name or names
                  specified in such notice;

                           (ii)     Each Investor shall pay the aggregate Unit
                  Purchase Price for the Units purchased thereby by wire
                  transfer of immediately available funds to such account as ACP
                  Holding and the Company may reasonably direct by written
                  notice delivered to the Investors by ACP Holding and the
                  Company at least two (2) Business Days before the Closing
                  Date; and

                           (iii)    The Company shall pay to each Investor the
                  balance of the Commitment Fee payable to such Investor in the
                  amount set forth opposite the name of such Investor on
                  Schedule I hereto, by wire transfer of immediately available
                  funds to such account as such Investor may reasonably direct
                  by written notice delivered to the Company by such Investor at
                  least two (2) Business Days before the Closing Date.

         (c)      At the Closing, the Company shall reimburse each Investor
for its reasonable actual out-of-pocket fees and expenses (the "EXPENSES")
incurred by or on behalf of the Investors in connection with the negotiation,
preparation, execution and delivery of the Transaction Documents (including any

                                       7

<PAGE>

commitment letter and term sheets preceding the Transaction Documents and
documents prepared in connection with the Chapter 11 Cases) and any and all
definitive documentation or other acts relating hereto or thereto, including,
but not limited to, the actual reasonable fees and expenses of counsel,
accountants and/or consultants to the Investors and the reasonable and
documented fees and expenses incurred by the Investors in connection with any
due diligence (including reasonable fees and expenses payable to counsel,
accountants and/or consultants), the aggregate amount of which each Investor
shall notify the Company no later than two (2) Business Days prior to the
Closing Date. The obligations of the Company under this paragraph (c) (the
"EXPENSE OBLIGATIONS") shall remain effective whether or not any of the
transactions contemplated by this Agreement are consummated and notwithstanding
the termination of the Commitment Letter and shall, subject to approval of the
Bankruptcy Court, be binding upon the Company as reorganized pursuant to the
Chapter 11 Cases in the event that any plan of reorganization of the Company is
consummated. The Investors acknowledge that the Company has previously advanced
to the Investors $604,603.68 to be used by them to fund Expenses in connection
with the matters described in this paragraph (c).

                                  ARTICLE III
           REPRESENTATIONS AND WARRANTIES OF THE REPRESENTING PERSONS

                  Each of ACP Holding and the Company represents and warrants
         with respect to the Representing Persons and NFC Castings, and each of
         the Company's Subsidiaries represents and warrants with respect to
         itself, jointly and severally, to each Investor as of the date hereof
         and as of the Closing Date that:

                  Section 3.01 Corporate Existence and Power. Each of ACP
         Holding, NFC Castings, the Company and each of the Company's
         Subsidiaries is duly organized, validly existing and in good standing
         under the laws of its jurisdiction of organization (to the extent such
         concepts are recognized in such jurisdiction) and has all requisite
         corporate power and authority necessary to carry on its business as now
         conducted. Each of ACP Holding, NFC Castings, the Company and each of
         the Company's Subsidiaries is duly qualified to do business as a
         foreign corporation and is in good standing in each jurisdiction where
         the failure to be so qualified would have a Material Adverse Effect.
         The Company has heretofore delivered to the Investors true and complete
         copies of the certificates of incorporation and bylaws (or analogous
         organizational documents) of each of ACP Holding, NFC Castings, the
         Company and each of the Company's Subsidiaries as currently in effect.

                  Section 3.02 Corporate Authorization. Subject to the approval
         of the Bankruptcy Court, each of the Representing Persons has all
         corporate right, power and authority to enter into this Agreement and
         each of the other Transaction Documents to which it is a party, to
         consummate the transactions contemplated hereby and thereby and to
         comply with the terms, conditions and provisions hereof and thereof.
         The execution and delivery by each of the Representing Persons of this
         Agreement and of each other Transaction Document to which it is a party
         is, and the issuance, sale and delivery of the Units by the Reorganized
         Debtors and the compliance by the Representing Persons (or the
         Reorganized Debtors, as the case may be) with each of the provisions of
         this Agreement and of each other Transaction Document to which they (or
         the Reorganized Debtors, as the case may be) are a party will, upon the
         approval of the Bankruptcy Court, be (i) within the corporate power and
         authority of the Representing Persons (or the Reorganized Debtors, as
         the case may be) and (ii) have been duly authorized by all requisite

                                       8
<PAGE>

         corporate action of the Representing Persons (or the Reorganized
         Debtors, as the case may be). This Agreement has been, and each of the
         other Transaction Documents to which the Representing Persons (or the
         Reorganized Debtors, as the case may be) are a party, when executed and
         delivered by the Representing Persons (or the Reorganized Debtors, as
         the case may be) will be, duly and validly executed and delivered by
         the Representing Persons (or the Reorganized Debtors, as the case may
         be), and this Agreement constitutes, and each of the other Transaction
         Documents when executed and delivered by the Representing Persons (or
         the Reorganized Debtors, as the case may be) will constitute, upon
         approval of the Bankruptcy Court, a valid and binding agreement of the
         Representing Persons (or the Reorganized Debtors, as the case may be),
         enforceable against the Representing Persons (or the Reorganized
         Debtors, as the case may be) in accordance with its terms, except as
         such enforcement may be limited by bankruptcy, reorganization,
         insolvency and other similar laws affecting the enforcement of
         creditors' rights generally and limitations imposed by general
         principles of equity.

                  Section 3.03 Capital Stock. (a) Upon consummation of the Plan,
         the authorized capital stock of Reorganized ACP Holding will consist
         solely of 100,000,000 shares of Common Stock. After giving effect to
         the consummation of the Plan and this Agreement, Reorganized ACP
         Holding will have 42,000,000 (subject to rounding to the nearest whole
         number pursuant to the Plan) shares of Common Stock issued and
         outstanding and such shares will be duly authorized, validly issued,
         fully paid and nonassessable. Except for this Agreement and as
         contemplated under the Plan, as of the Effective Date there shall be no
         outstanding Options with respect to any capital stock of Reorganized
         ACP Holding, NFC Castings, the Company or any of the Company's
         Subsidiaries. The delivery of a certificate or certificates at the
         Closing representing the Units in the manner provided in Section
         2.02(b) will transfer to each Investor good and valid title in such
         Units, free and clear of all Liens created by or imposed on the
         Representing Persons.

         (b)      The Warrants, when issued and allotted in accordance with the
provisions of the Plan and this Agreement, will be duly authorized, validly
issued, fully paid and nonassessable and free of any pre-emptive rights or any
Lien. The Common Stock issuable upon exercise of the Warrants have been duly
authorized and reserved for issuance by all necessary corporate action and, when
issued and allotted in accordance with the provisions of the Warrants, will be
duly authorized, validly issued, fully paid and nonassessable. As of the
Effective Date, there are no pre-emptive rights applicable to the issuance of
the Warrants or the shares of Common Stock issuable upon exercise of the
Warrants.

                  Section 3.04 Governmental Authorization. The execution,
         delivery and performance by each of the Representing Persons of the
         Transaction Documents to which it is a party and the consummation of
         the transactions contemplated hereby and thereby require no action by
         or in respect of, or filing with, any governmental body, agency or
         official, except for such actions and filings as have been or will be
         made or the absence of which would not reasonably be expected to have a
         Material Adverse Effect.

                  Section 3.05 Noncontravention. The execution, delivery and
         performance by each of the Representing Persons of the Transaction
         Documents to which it is a party and the consummation of the
         transactions contemplated hereby and thereby do not and will not (i)
         violate the certificate of incorporation or bylaws of such Representing
         Person (or the Reorganized Debtor, as the case may be), (ii) assuming
         compliance with the matters referred to in Section 3.04, violate any
         applicable law, rule, regulation, judgment, injunction, order or
         decree, (iii) assuming the

                                       9
<PAGE>

         obtaining of all required consents, constitute a default under or give
         rise to any right of termination, cancellation or acceleration of any
         right or obligation of such Representing Person (or the Reorganized
         Debtor, as the case may be) under any provision of any agreement or
         other instrument binding upon such Representing Person (or the
         Reorganized Debtor, as the case may be) or by which any of such assets
         or properties of such Representing Person (or the Reorganized Debtor,
         as the case may be) are or may be bound or (iv) result in the creation
         or imposition of any Lien on any of the assets or properties of such
         Representing Person (or the Reorganized Debtor, as the case may be),
         other than Permitted Liens or as otherwise contemplated by the
         Transaction Documents.

                  Section 3.06 Absence of Certain Developments. Except for the
         commencement of the Chapter 11 Cases, since March 31, 2003, the
         business of ACP Holding, NFC Castings, the Company and the Company's
         Subsidiaries has been conducted in the ordinary course consistent with
         past practice and there has been no material adverse change in the
         business, condition (financial or otherwise), operations, performance
         or properties of ACP Holding, NFC Castings, the Company and the
         Company's Subsidiaries (a "MATERIAL ADVERSE CHANGE"); provided that
         none of (i) the commencement of the Chapter 11 Cases nor any public
         announcement in respect thereof, (ii) the filing or confirmation of the
         Plan (iii) the facts or events related to the MACT compliance project
         and the Kendallville facility disclosed to the Investors prior to the
         date hereof, (iv) changes or events effecting general economic
         conditions or capital markets, but not otherwise materially and
         adversely effecting the business, assets or financial condition of the
         Representing Persons as a whole, nor (iv) any event, circumstance or
         condition disclosed in writing to the Investors prior to June 30, 2003
         shall constitute a Material Adverse Change.

                  Section 3.07 Financial Advisory Fees. No agent, broker,
         investment bank or other financial advisor is or will be entitled to
         any fee, commission, expense or other amount with respect to any
         transaction contemplated by this Agreement or the other Transaction
         Documents except for fees, commissions, expenses or other amounts
         payable under agreements heretofore disclosed to the Investors or
         approved by the Bankruptcy Court.

                  Section 3.08 Disclosure. No information contained in this
         Agreement, the Plan, the Disclosure Statement or the consolidated
         financial statements of the Company as of and for the fiscal year ended
         September 30, 2002 previously delivered to the Investors, as the same
         may have been supplemented or amended (the "INFORMATION") contains any
         untrue statement of a material fact or omits to state a material fact
         necessary to make the statements contained herein or therein not
         misleading in light of the circumstances under which they were made,
         and, to the extent that any such Information contains projections, such
         projections were prepared in good faith on the basis of (A)
         assumptions, methods and tests which were believed by the Representing
         Persons to be reasonable at the time such projections were made and (B)
         information believed by the Representing Persons to have been accurate
         based upon the information available to the Representing Persons at the
         time such projections were made.

                                       10
<PAGE>

                                   ARTICLE IV
                 REPRESENTATIONS AND WARRANTIES OF THE INVESTORS

                  Each Investor represents and warrants, only with respect to
         itself, severally and not jointly, to the Representing Persons as of
         the date hereof and as of the Closing Date that:

                  Section 4.01 Corporate Existence and Power. The Investor is
         duly organized, validly existing and in good standing under the laws of
         its jurisdiction of organization and has all powers and all material
         governmental licenses, authorizations, permits, consents and approvals
         required to carry on its business as now conducted.

                  Section 4.02 Authorization. The execution, delivery and
         performance by the Investor of this Agreement and each of the other
         Transaction Documents to which it is a party and the consummation of
         the transactions contemplated hereby and thereby are within the powers
         of the Investor and have been duly authorized by all necessary action
         on the part of the Investor. Each Transaction Document to which it is a
         party constitutes a valid and binding agreement of the Investor
         enforceable against the Investor in accordance with its terms, except
         that such enforcement may be limited by bankruptcy, reorganization,
         insolvency and other similar laws affecting the enforcement or
         creditors' rights generally and limitations imposed by general
         principles of equity.

                  Section 4.03 Governmental Authorization. The execution,
         delivery and performance by the Investor of this Agreement and the
         other Transaction Documents to which it is a party and the consummation
         of the transactions contemplated hereby and thereby require no material
         action by or in respect of, or material filing with, any governmental
         body, agency or official.

                  Section 4.04 Noncontravention. The execution, delivery and
         performance by the Investor of this Agreement and the other Transaction
         Documents to which it is a party and the consummation of the
         transactions contemplated hereby and thereby do not and will not (i)
         violate the organizational documents of the Investor or, (ii) assuming
         compliance with the matters referred to in Section 4.03, violate any
         applicable material law, rule, regulation, judgment, injunction, order
         or decree.

                  Section 4.05 Litigation. There is no action, suit,
         investigation or proceeding pending against, or to the knowledge of the
         Investor, threatened against or affecting the Investor, before any
         court or arbitrator or any governmental body, agency or official which
         in any manner challenges or seeks to prevent, enjoin, alter or
         materially delay the transactions contemplated by the Transaction
         Documents.

                  Section 4.06 Financial Advisory Fees. No agent, broker,
         investment bank or other financial advisor is or will be entitled to
         any fee, commission, expense or other amount from such Investor in
         connection with any of the transactions contemplated by this Agreement
         or the other Transaction Documents.

                  Section 4.07 Investment Knowledge; Access to Information. The
         Investor: (a) understands that the Units sold pursuant to this
         Agreement have not been, and will not be, registered under the
         Securities Act of 1933, as amended (the "SECURITIES ACT"), or under any
         state securities laws, and are being offered and sold in reliance upon
         federal and state exemptions

                                       11
<PAGE>

         for transactions not involving any public offering; (b) is acquiring
         the Units solely for its own account (or the account of the funds or
         managed accounts to be designated by such Investor) for investment
         purposes and not with a view to their distribution; (c) has knowledge
         and experience in business and financial matters; (d) has received
         certain information concerning ACP Holding, NFC Casting, the Company
         and the Company's Subsidiaries and has had the opportunity to obtain
         additional information as desired in order to evaluate the merits and
         the risks inherent in holding the Units; (e) is able to bear the
         economic risk and lack of liquidity inherent in holding the Units; and
         (f) is, or will be as of the Closing, an "Accredited Investor" (as
         defined in Regulation D promulgated under the Securities Act).

                  Section 4.08 Financing. The Investor will have sufficient
         financial resources available on the Closing Date in order to purchase
         the Units being purchased by it.

                  Section 4.09 Legend. The Investor is aware that each
         certificate representing any shares of Common Stock shall bear a legend
         in substantially the following form:

                  "THE SHARES OF COMMON STOCK REPRESENTED BY THIS CERTIFICATE
                  HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
                  AMENDED, OR UNDER THE SECURITIES LAWS OF ANY STATE OR OTHER
                  JURISDICTION AND MAY NOT BE SOLD, OFFERED FOR SALE OR
                  OTHERWISE TRANSFERRED UNLESS REGISTERED OR QUALIFIED UNDER
                  SAID ACT AND APPLICABLE STATE SECURITIES LAWS OR UNLESS NEENAH
                  FOUNDRY COMPANY RECEIVES AN OPINION OF COUNSEL REASONABLY
                  SATISFACTORY TO IT THAT SUCH REGISTRATION OR QUALIFICATION IS
                  NOT REQUIRED."

                                   ARTICLE V
                    COVENANTS OF ACP HOLDING AND THE COMPANY

                  ACP Holding and the Company agree that:

                  Section 5.01 Conduct of the Business. From and after the date
         hereof until the Closing Date, each of ACP Holding and the Company
         shall, and shall cause each of its Subsidiaries and Affiliates to,
         conduct its business in the ordinary course consistent with past
         practice, and shall use its best efforts to preserve intact the
         business organizations and relationships with third parties and to keep
         available the services of the present employees of ACP Holding, NFC
         Castings, the Company and the Company's Subsidiaries. Without limiting
         the generality of the foregoing, from the date hereof until the Closing
         Date, each of ACP Holding and the Company will not and will cause each
         of its Subsidiaries and Affiliates not to:

        (a)       amend its charter, bylaws or other comparable organizational
documents other than in accordance with this Agreement or amend or waive any
provisions of the Transaction Documents;

        (b)       acquire a material amount of assets from any other Person;

        (c)       issue shares or other securities except in compliance with the
Plan;

                                       12
<PAGE>

        (d)       sell, lease, license or otherwise dispose of any properties
except (i) pursuant to existing contracts or commitments and (ii) in the
ordinary course consistent with past practice;

        (e)       change its methods of accounting, except as required by
changes in GAAP;

        (f)       (i) incur any additional indebtedness, except as permitted
under the Plan, or (ii) make any loans, advances or capital contributions to, or
investments in, any Person (excluding any Subsidiary), except as permitted under
the Plan;

        (g)       except as otherwise permitted under the Plan, modify the
compensation or benefits of, or hire any employees, except for increases or
hirings in the ordinary course consistent with past practice; provided that any
modification to the compensation or benefits or hiring of any employee with a
base salary in excess of $120,000 per year or holding a position of at least
vice president shall require the prior written consent of the Investors; or

        (h)       agree or commit to do any of the foregoing.

                  Section 5.02 Access to Information. From and after the date
         hereof until the Closing Date, subject to the terms of the
         Confidentiality Agreement, and upon reasonable prior notice, ACP
         Holding and the Company will afford and will cause NFC Castings and the
         Company's Subsidiaries to afford the Investors and their
         Representatives full and complete access to the books, records and
         properties of ACP Holding, NFC Castings, the Company and the Company's
         Subsidiaries and the opportunity to discuss the business, affairs and
         finances of ACP Holding, NFC Castings, the Company and the Company's
         Subsidiaries and Affiliates with directors, officers, employees,
         accountants, attorneys and representatives of ACP Holding, NFC
         Castings, the Company and the Company's Subsidiaries and Affiliates in
         order to enable the Investors and their Representatives to make such
         investigations of ACP Holding, NFC Castings, the Company, the Company's
         Subsidiaries and Affiliates and their respective businesses as the
         Investors and their Representatives reasonably deem appropriate. Each
         of ACP Holding and the Company agrees that it will cause the officers
         and employees of ACP Holding, NFC Castings, the Company and the
         Company's Subsidiaries and Affiliates, and will request their
         respective legal counsel and accountants, to cooperate so that the
         Investors can complete such review, including promptly disclosing to
         the Investors any material fact known to such parties which has
         resulted in, or could reasonably be expected to result in, a Material
         Adverse Change or the occurrence of any Termination Event. Any
         investigation pursuant to this Section shall be conducted in such
         manner as not to interfere unreasonably with the conduct of the
         business of ACP Holding, NFC Castings, the Company or the Company's
         Subsidiaries and Affiliates. No investigation by the Investors or other
         information received by the Investors shall operate as a waiver or
         otherwise affect any representation, warranty or agreement given or
         made by the Representing Persons hereunder.

                  Section 5.03 Notices of Certain Events. From and after the
         date hereof until the Closing Date, each of ACP Holding and the Company
         shall promptly notify the Investors of:

        (a)       any notice or other communication from any Person alleging
that the consent of such Person is or may be required in connection with the
transactions contemplated by the Transaction Documents or the Plan;

                                       13
<PAGE>

        (b)       any notice or other communication from any governmental or
regulatory agency or authority in connection with the transactions contemplated
by the Transaction Documents or the Plan;

        (c)       any actions, suits, claims, investigations or proceedings
commenced or, to its knowledge threatened against, relating to or involving or
otherwise affecting ACP Holding, NFC Castings, the Company, any of the Company's
Subsidiaries and Affiliates or their respective businesses that, if pending on
the date of this Agreement, would have been required to have been disclosed
pursuant to Section 3.09 or that relate to the consummation of the transactions
contemplated by the Transaction Documents;

        (d)       the occurrence of any Termination Event;

        (e)       the occurrence of any event, or the existence of any material
fact which has resulted in, or could reasonably be expected to result in, a
Material Adverse Change; or

        (f)       any fact, event, transaction or circumstance that (i) causes
or will cause any covenant or agreement of the Representing Persons under the
Transaction Documents to be breached, (ii) that renders or will render untrue
any representation or warranty of the Representing Persons contained in this
Agreement as if the same were made on or as of the date of such fact, event,
transaction or circumstance or (iii) renders the satisfaction of any condition
to the Investors' obligations under this Agreement impossible or impracticable
with the use of commercially reasonable efforts.

                  Section 5.04 Corporate Governance. ACP Holding shall take all
         necessary action to provide that the number of directors on the Board
         of Directors of Reorganized ACP Holding shall consist of five (5)
         members. ACP Holding shall nominate and take all necessary action to
         provide that representatives to the Board of Directors of Reorganized
         ACP Holding immediately after the Closing shall be elected, replaced or
         removed in the manner set forth in the Stockholders Agreement.

                  Section 5.05 Rights Offering. ACP Holding and the Company
         shall have accepted all validly tendered subscriptions pursuant to the
         terms of the Rights Offering and in accordance with Article IV of the
         Plan.

                  Section 5.06 Regulatory Approval Expenses. ACP Holding and the
         Company agree to reimburse the Investors for all expenses, including
         all filing and/or application fees and the reasonable fees and expenses
         of counsel, incurred by or on behalf of the Investors in connection
         with obtaining all waivers, consents, approvals and actions of, and
         making all filings with and giving all notices to any Governmental
         Authority or any other public or private third parties required of the
         Investors or ACP Holding and the Company to consummate the transactions
         contemplated by the Transaction Documents.

                                   ARTICLE VI
                           COVENANTS OF THE INVESTORS

                  Each Investor agrees, severally and not jointly, that:

                  Section 6.01 Confidentiality. (a) All confidential documents
         and information concerning the Company or any its Subsidiaries
         furnished to the Investors in connection with the

                                       14
<PAGE>

         transactions contemplated by the Transaction Documents shall be
         accorded the treatment prescribed for Evaluation Materials in the
         Confidentiality Agreement.

        (b)    Notwithstanding anything herein to the contrary, each party
hereto (and each Affiliate and person acting on behalf of any such party) agrees
that each party (and each employee, representative, and other agent of such
party) may disclose to any and all persons, without limitation of any kind, the
tax treatment and tax structure of the transactions contemplated by the
Transaction Documents and all materials of any kind (including opinions or other
tax analyses) that are provided to such party or such person relating to such
tax treatment and tax structure, except to the extent necessary to comply with
any applicable federal or state securities laws. This authorization is not
intended to permit disclosure of any other information including (without
limitation) (i) any portion of any materials to the extent not related to the
tax treatment or tax structure of the contemplated transactions, (ii) the
identities of participants or potential participants in the contemplated
transactions, (iii) the existence or status of any negotiations, (iv) any
pricing or financial information (except to the extent such pricing or financial
information is related to the tax treatment or tax structure of the contemplated
transactions), or (v) any other term or detail not relevant to the tax treatment
or the tax structure of the contemplated transactions.

                                  ARTICLE VII
             COVENANTS OF ACP HOLDING, THE COMPANY AND THE INVESTORS

                  ACP Holding, the Company and each Investor (with respect to
         itself only) agree that:

                  Section 7.01 Best Efforts; Further Assurances. Subject to the
         terms and conditions of this Agreement, the parties to this Agreement
         will use their reasonable best efforts to take, or cause to be taken,
         all actions and to do, or cause to be done, all things necessary or
         desirable under applicable laws and regulations to consummate the
         transactions contemplated by the Transaction Documents to which they
         are a party. Each party hereto agrees to execute and deliver, or cause
         to be executed and delivered, such other documents, certificates,
         agreements and other writings and to take or to cause to be taken such
         other actions as may be necessary or desirable in order to consummate
         or implement expeditiously the transactions contemplated by the
         Transaction Documents.

                  Section 7.02 Public Announcements. Neither ACP Holding nor the
         Company shall issue any press release that references the Investors or
         any of the transactions contemplated under the Transaction Documents
         without the consent of the Investors; provided, however, that if ACP
         Holding or the Company has provided the Investors with a copy of the
         press release, and the Investors have not responded within four (4)
         Business Days, ACP Holding and the Company may proceed with issuance of
         such press release.

                                  ARTICLE VIII
                              CONDITIONS TO CLOSING

                  Section 8.01 Conditions to Obligation of the Investors. The
         obligation of each Investor to consummate the Closing is subject to the
         satisfaction of the following further conditions:

         (a)      Performance of Obligations. (i) Each of ACP Holdings, the
Company and the Company's Subsidiaries shall have performed in all material
respects all of its obligations under the

                                       15
<PAGE>

Transaction Documents and the Plan required to be performed by it on or prior to
the Closing Date; (ii) the representations and warranties of ACP Holding, the
Company and the Company's Subsidiaries contained in this Agreement and in any
certificate or other writing delivered by ACP Holding, the Company or any of the
Company's Subsidiaries pursuant hereto shall be true and correct in all material
respects at and as of the Closing Date as if made at and as of such time, in
each case individually and in the aggregate; and (iii) the Investors shall have
received a certificate signed by the President and the Chief Financial Officer
of ACP Holding and the Company to the foregoing effect.

         (b)      Corporate Existence; Authority. The Investors shall have
received all documents they may reasonably request relating to the existence of
each of the Representing Persons and the authority of each such Representing
Person to enter into, and complete the transactions contemplated by, the
Transaction Documents to which it is a party, all in form and substance
reasonably satisfactory to the Investors.

         (c)      Instruments and Proceedings to be Satisfactory. All corporate
and other proceedings taken or to be taken in connection with the transactions
contemplated by this Agreement and the other Transaction Documents shall be
reasonably satisfactory to the Investors.

         (d)      Amendment to Certificate of Incorporation and Bylaws. ACP
Holding shall have caused the Reorganized ACP Holding to adopt the Restated
Certificate of Incorporation and Restated Bylaws in accordance with Delaware law
and the Investors shall have received evidence thereof reasonably satisfactory
to the Investors.

         (e)      Satisfactory Form of the Plan. The Plan shall be in form and
substance consistent with the Plan Term Sheet or otherwise in form and substance
reasonably satisfactory to the Investors and such Plan shall not have been
amended or modified without the consent of the Investors and the conditions
precedent to the confirmation and consummation of such Plan shall not have been
waived without the consent of the Investors;

         (f)      Confirmation of the Plan. (1) All conditions precedent to the
effectiveness of the Plan (other than those relating to the Closing hereunder)
shall have been satisfied or waived; and (2) an order confirming the Plan,
reasonably satisfactory to the Investor, substantially in the form attached
hereto as Exhibit E, shall have been entered and shall not have been stayed or
modified or vacated on appeal;

         (g)      Absence of Adverse Change. For the period from March 31, 2003
until immediately prior to Closing, there shall not have occurred or been
existing, at any time, a Material Adverse Change.

         (h)      Transaction Documents. Each of ACP Holding, the Company and
each of the Company's Subsidiaries shall have duly executed and delivered all
the Transaction Documents to which it is a party, in form and substance
satisfactory to the Investors in their reasonable discretion, and shall have
satisfied the conditions precedent contained in such Transaction Documents
(unless waived in writing by the Investors).

         (i)      New Facilities. The Company and each of the lenders party to
the New Facilities shall have executed and delivered the New Facilities and made
any initial funding contemplated under the New Facilities and each of the New
Facilities shall be in full force and effect.

                                       16
<PAGE>

         (j)      Governmental, Regulatory and Third Party Consents and
Approvals. All necessary governmental, regulatory and third party approvals,
waivers and/or consents in connection with the transactions contemplated by the
Transaction Documents shall have been obtained by ACP Holding and the Company
and remain in full force and effect, and there shall exist no claim, action,
suit, investigation, litigation or proceeding, pending or threatened in any
court or before any arbitrator or governmental instrumentality, which seeks to
restrict the consummation of the transactions contemplated by the Transaction
Documents.

         (k)      Senior Secured Notes Registration Rights Agreement and Senior
Subordinated Notes Registration Rights Agreement. The Company shall have
executed and delivered the Senior Secured Notes Registration Rights Agreement
and the Senior Subordinated Notes Registration Rights Agreement and such
agreements shall be in full force and effect.

         (l)      Warrant Registration Rights Agreement. ACP Holding shall have
executed and delivered the Warrant Registration Rights Agreement and such
agreement shall be in full force and effect.

         (m)      Legality of Investment. There shall not be in effect any law
or order of any Governmental Authority restraining, enjoining or otherwise
prohibiting or making illegal the consummation of the transactions contemplated
by the Transaction Documents and there shall exist no claim, action, suit,
investigation, litigation, arbitration or proceeding, pending or threatened, in
any court or before any tribunal or arbitrator, commenced or sought by any
Person, seeking such a law or order.

         (n)      Liquidity. After giving effect to the purchase of the Maximum
Units by the Investors and the Participating Holders, if any, and the payments
to be made under the Plan, the Company and its Subsidiaries shall have cash and
cash equivalents plus available borrowings under the Revolver as of the Closing
Date of no less than $25,000,000.

         (o)      Other Investors. All other Investors shall have purchased the
Units that they are obligated to purchase pursuant to Schedule I hereto and
shall have performed all of their other obligations under the Transaction
Documents to which they are a party.

         (p)      Executive Officer Certificate. No later than the Business Day
immediately prior to the Closing Date, each of ACP Holding and the Company shall
deliver to the Investors a certificate executed by the President and Chief
Executive Officer and the Chief Financial Officer of each of ACP Holding and the
Company:

                           (i)      setting forth the actual EBITDA of the
                  Company and its Subsidiaries on a consolidated basis
                  calculated in accordance with GAAP, consistently applied for
                  the twelve months period ended August 31, 2003;

                           (ii)     confirming that, to the best of their
                  knowledge, the actual EBITDA of the Company and its
                  Subsidiaries on a consolidated basis calculated in accordance
                  with GAAP, consistently applied for the twelve months period
                  ended September 30, 2003 exceeds $50,000,000;

                           (iii)    confirming that the Company will have
                  immediately following the Closing, cash and cash equivalents,
                  plus available borrowings under the Revolver of not less than
                  $25,000,000; and

                                       17
<PAGE>

                           (iv)     confirming satisfaction of the conditions
                  set forth in Sections 8.01(b), (g), (i), (k) and (m).

         (q)      The Investors and the Participating Holders shall have
subscribed and paid for the Maximum Units for a price per Unit of not less than
the Unit Purchase Price.

         (r)      The Company shall have reimbursed the Investors for their
Expenses in accordance with Section 2.02(c).

                  Section 8.02 Conditions to Obligations of ACP Holding and the
         Company. The obligation of ACP Holding and the Company to consummate
         the Closing is subject to the satisfaction of the following conditions:

         (a)      Performance of Obligations. (i) Each Investor shall have
performed in all material respects all of its obligations under the Transaction
Documents required to be performed by it at or prior to the Closing Date and
(ii) the representations and warranties of each Investor contained in this
Agreement and in any certificate or other writing delivered by such Investor
pursuant hereto shall be true in all material respects at and as of the Closing
Date, as if made at and as of such date.

         (b)      Governmental and Regulatory Consent and Approvals. Each
Investor shall have received all consents, authorizations or approvals from
governmental agencies referred to in Section 4.03, in each case in form and
substance reasonably satisfactory to ACP Holding and the Company, and no such
consent, authorization or approval shall have been revoked.

         (c)      Existence; Authority. The Company shall have received all
documents it may reasonably request relating to the existence of each Investor
and the authority of such Investor to enter into, and complete the transactions
contemplated by, the Transaction Documents to which it is a party, all in form
and substance reasonably satisfactory to the Company.

         (d)      Legality of Investment. There shall not be in effect any law
or order of any Governmental Authority restraining, enjoining or otherwise
prohibiting or making illegal the consummation of the transactions contemplated
by the Transaction Documents.

                  Section 8.03 Conditions to Obligations of the Investors, ACP
         Holding and the Company.

         (a)      Lien Subordination Agreement. The Lien Subordination Agreement
shall be on terms reasonably acceptable to the Company, the lenders party to the
Credit Agreement and the Investors.

                                   ARTICLE IX
                            SURVIVAL; INDEMNIFICATION

                  Section 9.01 Survival. The representations and warranties of
         the parties hereto contained in this Agreement or in any certificate or
         other writing delivered pursuant to or in connection with this
         Agreement shall survive the Closing until the second anniversary of the
         Closing Date; provided that the representations and warranties set
         forth in Sections 3.02, 3.03, 4.02 and 4.06 shall survive indefinitely.
         Notwithstanding the preceding sentence, any representation or warranty
         in respect of which indemnity may be sought under this Agreement shall
         survive the time at which it would otherwise terminate pursuant to the
         preceding sentence, if notice of the

                                       18
<PAGE>

         inaccuracy thereof giving rise to such right of indemnity shall have
         been given to the party against whom such indemnity may be sought prior
         to such time. The covenants and agreements of the parties (including,
         without limitation, the covenants and agreements of the parties set
         forth in this Article IX) contained in this Agreement or in any other
         Transaction Document which by their terms are to be performed following
         the Closing Date shall survive indefinitely.

                  Section 9.02 Indemnification. (a) Each of ACP Holdings and the
         Company (or the Reorganized Debtors, as the case may be) hereby agrees
         to indemnify each Investor and its Affiliates and each of their
         shareholders, directors, officers, partners, members, managers,
         employees, agents and assignees, including Affiliates thereof,
         (collectively, with respect to any Person, such Person's
         "REPRESENTATIVES") against and agrees to hold each of them harmless
         from, any and all losses, claims, damages, liabilities and expenses
         (including, without limitation, reasonable expenses of investigation
         and reasonable attorneys' fees and expenses in connection with any
         action, suit or proceeding whether involving a third-party claim or a
         claim solely between the parties hereto) ("DAMAGES") incurred or
         suffered by them arising out of:

                           (i)      any misrepresentation or breach of warranty,
                  covenant or agreement made or to be performed by ACP Holding
                  or the Company pursuant to this Agreement;

                           (ii)     any and all Damages arising out of or in any
                  way relating to or resulting from the Commitment Letter or
                  this Agreement, or in any way arising from any use or intended
                  use of the Commitment Letter, this Agreement or the proceeds
                  of the Investment (as defined in the Commitment Letter),
                  including reimbursement (on an as-incurred monthly basis) of
                  each Investor for any reasonable and documented legal or other
                  expenses incurred in connection with investigating, defending
                  or participating in any such loss, claim, damage, liability or
                  action or other proceeding (whether or not such Investor is a
                  party to any action or proceeding out of which indemnified
                  expenses arise), but excluding therefrom all Damages that are
                  finally determined by a court of competent jurisdiction to
                  have resulted primarily from the bad faith, gross negligence
                  or willful misconduct of such Investor; and

                           (iii)    the enforcement of its rights under this
                  Section 9.02.

                  The obligations of ACP Holding and the Company under this
         Section 9.02(a) (the "INDEMNIFICATION OBLIGATIONS") shall remain
         effective whether or not any of the transactions contemplated in the
         Transaction Documents are consummated, any definitive legal
         documentation is executed and notwithstanding any termination of this
         Agreement and shall, subject to the approval of the Bankruptcy Court,
         be binding upon the Reorganized Debtors in the event that any plan of
         reorganization of the Company is consummated.

         (b)      Each Investor, severally and not jointly, hereby agrees to
indemnify ACP Holding, the Company, the Company's Subsidiaries and their
respective Representatives against and agrees to hold each of them harmless from
any and all Damages incurred or suffered by them arising out of:

                           (i)      any misrepresentation or breach of warranty
                  (disregarding any qualification or exception contained in such
                  representation or warranty relating to

                                       19
<PAGE>

                  materiality), covenant or agreement made or to be performed by
                  such Investor pursuant to any of the Transaction Documents;
                  and

                           (ii)     the enforcement of their rights under this
                  Section 9.02.

                  Section 9.03 Procedures for Third Party Claims. (a) The
         parties seeking indemnification under Section 9.02 (the "INDEMNIFIED
         PARTIES") shall give prompt notice to the parties against whom
         indemnity is sought (the "INDEMNIFYING PARTIES") of the assertion of
         any claim, or the commencement of any suit, action or proceeding in
         respect of which indemnity may be sought under Section 9.02 (the "THIRD
         PARTY CLAIMS"). The failure by any Indemnified Party so to notify the
         Indemnifying Parties shall not relieve any Indemnifying Party from any
         liability which it may have to such Indemnified Party with respect to
         any claim made pursuant to this Section 9.03, except to the extent such
         failure shall actually prejudice an Indemnifying Party.

         (b)      Upon receipt of notice from the Indemnified Parties pursuant
to Section 9.03(a), the Indemnifying Parties will, subject to the provisions of
Section 9.03(c), assume the defense and control of such Third Party Claims but
shall allow the Indemnified Parties a reasonable opportunity to participate in
the defense of such Third Party Claims with their own counsel and at their own
expense (except as provided in Section 9.03(d)). The Indemnifying Parties shall
select counsel, contractors and consultants of recognized standing and
competence who shall be reasonably acceptable to the Indemnified Parties; shall
take all steps necessary in the defense or settlement of such Third Party
Claims; and shall at all times diligently and promptly pursue the resolution of
such Third Party Claims. The Indemnified Parties shall, and shall cause each of
their Subsidiaries and Affiliates and their Representatives to, cooperate fully
with the Indemnifying Parties in the defense of any Third Party Claim defended
by the Indemnifying Parties.

         (c)      The Indemnifying Parties shall not be authorized to consent to
a settlement of, or the entry of any judgment arising from, any Third Party
Claim, without the consent of the Indemnified Parties; provided, however, that
upon ten (10) days notice and the opportunity to object by the Indemnified
Parties, the Indemnifying Parties shall be authorized to consent to such a
settlement or judgment if the Indemnifying Parties shall (i) pay or cause to be
paid all amounts arising out of such settlement or judgment concurrently with
the effectiveness of such settlement; (ii) not encumber any of the assets of any
Indemnified Party or agree to any restriction or condition that would apply to
or adversely affect any Indemnified Party or the conduct of any Indemnified
Party's business; and (iii) obtain, as a condition of any settlement or other
resolution, a complete release of any Indemnified Party potentially affected by
such Third Party Claim.

         (d)      The Indemnifying Parties shall also be liable for the
reasonable fees and expenses of counsel incurred by each Indemnified Party in
defending any Third Party Claim if such Third Party Claim, if successful, is
likely to result in a judgment, decree or order of injunction or other equitable
relief or relief for other than money Damages against such Indemnified Party.

                  Section 9.04 Procedures for Direct Claims. In the event any
         Indemnified Party should have a claim for indemnity against any
         Indemnifying Party that does not involve a Third Party Claim, the
         Indemnified Party shall deliver notice of such claim with reasonable
         promptness to the Indemnifying Party. The failure by any Indemnified
         Party so to notify the Indemnifying Party shall not relieve the
         Indemnifying Party from any liability that it may have to such

                                       20
<PAGE>

         Indemnified Party with respect to any claim made pursuant to this
         Section 9.04, it being understood that notices for claims in respect of
         a breach of a representation or warranty must be delivered prior to the
         expiration of the survival period for such representation or warranty
         except to the extent of any actual harm suffered by such Indemnifying
         Party as a result of such failure. If the Indemnifying Party does not
         notify the Indemnified Party within 30 calendar days following its
         receipt of such notice that the Indemnifying Party disputes its
         liability to the Indemnified Party under this Article IX, the claim
         specified by the Indemnified Party in such notice shall be conclusively
         deemed a liability of the Indemnifying Party under this Article IX, and
         the Indemnifying Party shall pay the amount of such liability to the
         Indemnified Party within 30 days of demand or, in the case of any
         notice in which the amount of the claim (or any portion of the claim)
         is estimated, on such later date when the amount of such claim (or such
         portion of such claim) becomes finally determined. If the Indemnifying
         Party has timely disputed its liability with respect to such claim as
         provided above, the Indemnifying Party and the Indemnified Party shall
         resolve such dispute in accordance with Section 11.06.

                  Section 9.05 Liability. The liability of the Representing
         Persons to the Investors pursuant to this Agreement is joint and
         several and extends solely to any matter relating to the purchase of
         the Unsubscribed Units and no Investor shall have any claim for damages
         hereunder in respect of Units acquired thereby pursuant to the Rights
         Offering.

                                    ARTICLE X
                                   TERMINATION

                  Section 10.01 Grounds for Termination. This Agreement may be
         terminated at any time prior to the Closing:

         (a)      by mutual written agreement of ACP Holding, the Company and
the Investors;

         (b)      by ACP Holding, the Company or any Investor if the
Participating Holders acquire the Maximum Units pursuant to the Plan;

         (c)      by ACP Holding or the Company if there shall be any law or
regulation that makes consummation of the transactions contemplated hereby by
any Investor illegal or otherwise prohibited or consummation of the transactions
contemplated hereby by any Investor would violate any nonappealable final order,
decree or judgment of any court or governmental body having competent
jurisdiction;

         (d)      by ACP Holding or the Company in the event (i) of a material
breach hereof by any Investor if such breaching Investor fails to cure such
breach within ten (10) Business Days following notification thereof by the
Company or (ii) upon notification of any Investor by ACP Holding or the Company
that the satisfaction of any condition to the obligations of ACP Holding or the
Company under this Agreement becomes impossible or impracticable with the use of
commercially reasonable efforts if the failure of such condition to be satisfied
is not caused by a breach hereof by ACP Holding or the Company; or

         (e)      upon the occurrence of any of the following events (unless
waived by any Investor as set forth below):

                                       21
<PAGE>

                           (i)      the Bankruptcy Court does not confirm the
                  Plan on or before October 4, 2003;

                           (ii)     the Effective Date of the Plan does not
                  occur on or before October 20, 2003;

                           (iii)    a trustee, responsible officer, or an
                  examiner with powers beyond the duty to investigate and
                  report, as set forth in subclauses (3) and (4) of clause (a)
                  of section 1106 of the Bankruptcy Code shall have been
                  appointed under section 1104 or 105 of the Bankruptcy Code for
                  service in the Chapter 11 Cases;

                           (iv)     the Chapter 11 Cases shall have been
                  converted to cases under chapter 7 of the Bankruptcy Code;

                           (v)      the failure or non-occurrence of any
                  condition precedent contained in Section 8.01;

                           (vi)     after filing the Plan, ACP Holding, NFC
                  Castings or the Company (i) submits a second or amended plan
                  of reorganization or liquidation that is materially adverse to
                  the Investors and inconsistent with the terms and provisions
                  of the Plan Term Sheet or (ii) moves to withdraw or withdraws
                  the Plan;

                           (vii)    ACP Holding or the Company executes and/or
                  seeks Bankruptcy Court approval for a different offering or
                  sale of debt or equity of the Reorganized Debtors or any other
                  standby commitment or proposal for any other transaction in
                  excess of $110 million, other than with the Investors or as
                  contemplated by the Plan Term Sheet;

                           (viii)   as of the last day of each fiscal month
                  ending after the date hereof and prior to the consummation of
                  the Plan, the EBITDA of the Company and its Subsidiaries on a
                  consolidated basis calculated in accordance with GAAP
                  consistently applied for the twelve months ending as of such
                  last day shall be less than $50 million; and

                           (ix)     a material breach hereof by either ACP
                  Holding or the Company.

                  The party desiring to terminate this Agreement pursuant to
         clauses 10.01(b), (c) or (d) shall give notice of such termination to
         the other party and, except as provided in clause (i) of Section
         10.01(d), upon receipt of such notice by the non-terminating parties,
         this Agreement shall be terminated.

                  In the event of a termination by the Company pursuant to
         clause 10.01(c) or (d) arising from facts or circumstances applicable
         only to one Investor, the other Investors may, by written notice
         delivered to ACP Holding and the Company not later than five (5)
         Business Days following receipt of the Company's notice of termination,
         elect to subscribe for and purchase all the Units not purchased by the
         breaching Investor. In the event of such election, the Company's
         termination of this Agreement with respect to such Electing Investors
         shall be deemed null and void and the Electing Investors shall be
         deemed to have subscribed for all of such Units at a per Unit purchase
         price equal to the Unit Purchase Price, subject to the satisfaction
         (with respect to such Electing Investors only) of the conditions
         contained in Section 8.02 by such Electing

                                       22
<PAGE>

         Investors. The number of Units each Electing Investor shall have the
         right to purchase under this paragraph shall be calculated in the
         manner set forth in Section 2.01(b).

         All provisions of this Agreement shall terminate effective upon (A)
         written notice being provided to the Company by the Investors stating
         that (1) a Termination Event has occurred and (2) setting forth the
         nature of such Termination Event; provided that the Company hereby
         agrees to waive the requirement (if any) that the automatic stay in
         effect pursuant to section 362 of the Bankruptcy Code (the "AUTOMATIC
         STAY") be lifted in connection with giving such notice (and not to
         object to the Investors seeking to lift the Automatic Stay in
         connection with giving such notice, if necessary), and (B) with respect
         to any Termination Event capable of being cured, a ten (10) day cure
         period with respect thereto shall have lapsed and such event or breach
         shall have remained uncured. The Company shall notify the Investors in
         writing of the occurrence of any Termination Event.

                  Section 10.02 Effect of Termination. If this Agreement is
         terminated as permitted by Section 10.01, such termination shall be
         without liability of either party (or any stockholder, partner, member,
         director, officer, employee, agent, consultant or representative of
         such party) to the other party to this Agreement; provided that if such
         termination shall result from the (i) willful failure of either party
         to fulfill a condition to the performance of the obligations of the
         other party, (ii) failure to perform a covenant of this Agreement or
         (iii) breach by either party hereto of any representation or warranty
         or agreement contained herein, such party shall be fully liable for any
         and all Damages incurred or suffered by the other party as a result of
         such failure or breach. The provisions of Sections 2.02(c) (which
         Expenses will be paid to the Investors within one (1) day of receipt of
         the Investors' invoices therefor), 5.07, 6.01, 9.02 (and Section 9.03
         and 9.04 to the extent applicable to a claim under 9.02), 11.03, 11.05,
         11.06 and 11.07 shall survive any termination hereof pursuant to
         Section 10.01.

                                   ARTICLE XI
                                  MISCELLANEOUS

                  Section 11.01 Notices. All notices, requests and other
         communications to any party hereunder shall be in writing (including
         facsimile transmission) and shall be given,

                  if to the Investors, to:

                  MacKay Shields LLC
                  9 West 57th Street, 33rd Floor
                  New York, NY 10019
                  Attention: Neal G. Goldman
                  Fax: (212) 754-9187

                  Citicorp Mezzanine III, L.P.
                  399 Park Avenue, 14th Floor
                  New York, NY 10043
                  Attention: Richard E. Mayberry, Jr.
                  Fax: (212) 888-2940

                                       23
<PAGE>

                  TCW Shared Opportunity Fund II, L.P.
                  c/o Trust Company of the West
                  11100 Santa Monica Boulevard, Suite 2000
                  Los Angeles, CA 90025
                  Attention: Jamison J. Van Niel
                  Fax: (310) 235-5965

                  Shared Opportunity Fund IIB LLC
                  c/o Trust Company of the West
                  11100 Santa Monica Boulevard, Suite 2000
                  Los Angeles, CA 90025
                  Attention: Jamison J. Van Niel
                  Fax: (310) 235-5965

                  TCW Shared Opportunity Fund IV, L.P.
                  c/o Trust Company of the West
                  11100 Santa Monica Boulevard, Suite 2000
                  Los Angeles, CA 90025
                  Attention: Jamison J. Van Niel
                  Fax: (310) 235-5965

                  TCW Shared Opportunity Fund IVB, L.P.
                  c/o Trust Company of the West
                  11100 Santa Monica Boulevard, Suite 2000
                  Los Angeles, CA 90025
                  Attention: Jamison J. Van Niel
                  Fax: (310) 235-5965

                  AIMCO CDO, Series 2000-A
                  c/o Trust Company of the West
                  11100 Santa Monica Boulevard, Suite 2000
                  Los Angeles, CA 90025
                  Attention: Jamison J. Van Niel
                  Fax: (310) 235-5965

                  TCW High Income Partners, Ltd.
                  c/o Trust Company of the West
                  11100 Santa Monica Boulevard, Suite 2000
                  Los Angeles, CA 90025
                  Attention: Jamison J. Van Niel
                  Fax: (310) 235-5965

                  TCW High Income Partners II, Ltd.
                  c/o Trust Company of the West
                  11100 Santa Monica Boulevard, Suite 2000
                  Los Angeles, CA 90025
                  Attention: Jamison J. Van Niel
                  Fax: (310) 235-5965

                                       24
<PAGE>

                  Metropolitan Life Insurance Company
                  10 Park Avenue
                  Morristown, NJ  07962
                  Attention: Lisa Glass, Esq.
                  Fax: (212) 251-1563

                  Exis Differential Holdings, Ltd.
                  767 Third Avenue
                  New York, NY  10017
                  Attention: Christopher P. Kane
                  Fax: (212) 688-6010

         with a copy to:

                  Weil, Gotshal & Manges LLP
                  767 Fifth Avenue
                  New York, New York 10153
                  Attention: Michael F. Walsh
                  Fax: (212) 310-8007

         if to ACP Holding:

                  ACP Holding Company
                  2121 Brooks Street
                  Neenah, Wisconsin 54956
                  Attention: William M. Barrett
                  Fax: (920) 729-3633

         if to the Company, to:

                  Neenah Foundry Company
                  2121 Brooks Avenue
                  Neenah, Wisconsin 54956
                  Attention: William M. Barrett
                  Fax: (920) 729-3633

         with a copy to:

                  Kirkland & Ellis LLP
                  153 East 53rd Street
                  New York, NY 10022
                  Attention: Geoffrey W. Levin
                  Fax: (212) 446-4900

         All such notices, requests and other communications shall be deemed
         received on the date of receipt by the recipient thereof if received
         prior to 5:00 p.m. in the place of receipt and such day

                                       25
<PAGE>

         is a business day in the place of receipt. Otherwise, any such notice,
         request or communication shall be deemed not to have been received
         until the next succeeding business day in the place of receipt.

                  Section 11.02 Amendments and Waivers. (a) Any provision of
         this Agreement may be amended or waived if, but only if, such amendment
         or waiver is in writing and is signed, in the case of an amendment, by
         each party to this Agreement, or in the case of a waiver, by the party
         against whom the waiver is to be effective.

         (b)      No failure or delay by any party in exercising any right,
power or privilege hereunder shall operate as a waiver thereof nor shall any
single or partial exercise thereof preclude any other or further exercise
thereof or the exercise of any other right, power or privilege. The rights and
remedies herein provided shall be cumulative and not exclusive of any rights or
remedies provided by law.

                  Section 11.03 Expenses. Except as otherwise provided herein,
         all costs and expenses incurred in connection with the Transaction
         Documents shall be paid by the party incurring such cost or expense.

                  Section 11.04 Successors and Assigns. The provisions of this
         Agreement shall be binding upon and inure to the benefit of the parties
         hereto and their respective successors and assigns; provided, however,
         that neither this Agreement nor any right, interest or obligation
         hereunder may be assigned by any party hereto without the prior written
         consent of the other parties hereto and any attempt to do so will be
         void.

                  Section 11.05 Governing Law. Agreement shall be governed by
         and construed in accordance with the law of the State of New York,
         without regard to the conflicts of law rules of such state.

                  Section 11.06 Jurisdiction. The Bankruptcy Court shall retain
         jurisdiction with respect to all matters arising from or related to the
         implementation of this Agreement or the transactions contemplated
         hereby and each of the parties hereby irrevocably consents to the
         jurisdiction of such courts (and of the appropriate appellate courts
         therefrom) in any suit, action or proceeding seeking to enforce any
         provision of, or based on any matter arising out of or in connection
         with, this Agreement or the transactions contemplated hereby and
         irrevocably waives, to the fullest extent permitted by law, any
         objection that it may now or hereafter have to the laying of the venue
         of any such suit, action or proceeding in any such court or that such
         suit, action or proceeding which is brought in such court has been
         brought in an inconvenient forum. Process in any such suit, action or
         proceeding may be served on any party anywhere in the world, whether
         within or without the jurisdiction of any such court. Without limiting
         the foregoing, each party agrees that service of process on such party
         as provided in Section 11.01 shall be deemed effective service of
         process on such party.

                  Section 11.07 WAIVER OF JURY TRIAL. EACH OF THE PARTIES HERETO
         HEREBY IRREVOCABLY WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY
         LEGAL PROCEEDING ARISING OUT OF OR RELATED TO THIS AGREEMENT OR THE
         TRANSACTIONS CONTEMPLATED HEREBY.

                                       26
<PAGE>

                  Section 11.08 Counterparts; Third Party Beneficiaries. This
         Agreement may be signed in any number of counterparts, each of which
         shall be an original, with the same effect as if the signatures thereto
         and hereto were upon the same instrument. This Agreement shall become
         effective when each party hereto shall have received a counterpart
         hereof signed by each other party hereto. No provision of this
         Agreement is intended to confer upon any Person other than the parties
         hereto any rights or remedies hereunder.

                  Section 11.09 Entire Agreement. This Agreement and the other
         Transaction Documents constitute the entire agreement between the
         parties with respect to the subject matter of this Agreement and
         supersede all prior agreements and understandings, both oral and
         written, between the parties with respect to the subject matter of this
         Agreement.

                  Section 11.10 Captions. The captions herein are included for
         convenience of reference only and shall be ignored in the construction
         or interpretation hereof.

                  Section 11.11 Service on Committee of Creditors.
         Notwithstanding anything herein to the contrary, the terms of this
         Agreement shall not be construed so as to limit any Investor's exercise
         of its fiduciary duties as a member of a creditors' committee to any
         person arising from its service on such committee, and any such
         exercise of such fiduciary duty shall not be deemed to constitute a
         breach of the terms of this Agreement.

                  Section 11.12 Delays or Omissions. Except as expressly
         provided herein, no delay or omission to exercise any right, power or
         remedy accruing to the Company or the Investors upon any breach or
         default of any party under this Agreement, shall impair any such right,
         power or remedy of the Company or Investors nor shall it be construed
         to be a waiver of any such breach or default, or an acquiescence
         therein, or of or in any similar breach or default thereafter
         occurring; nor shall any waiver of any single breach or default be
         deemed a waiver of any other breach or default theretofore or
         thereafter occurring. Any waiver, permit, consent or approval of any
         kind or character on the part of the Company or the Investors of any
         breach or default under this Agreement, or any waiver on the part of
         any such party of any provisions or conditions of this Agreement, must
         be in writing and shall be effective only to the extent specifically
         set forth in such writing. All remedies, either under this Agreement or
         by law or otherwise afforded to the Company or the Investors shall be
         cumulative and not alternative.

                  Section 11.13 Interpretation. The parties agree that to the
         extent any provision of the Plan relating to the Investors and the
         Participating Investors conflicts with any provision of this Agreement,
         the provisions of this Agreement shall control.

                                       27
<PAGE>

         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.

                                     MACKAY SHIELDS LLC

                                     By: /s/ Don Morgan III
                                        ------------------------------------
                                        Name:  Don Morgan III
                                        Title: Senior Managing Director

                                     CITICORP MEZZANINE III, L.P.

                                     By: /s/ Byron Knief
                                        ------------------------------------
                                        Name:  Byron Knief
                                        Title: Senior Vice President

                                     TCW Shared Opportunity Fund II, L.P.
                                     By: TCW Investment Management Company
                                          Its Investment Manager

                                     By: /s/ Nicholas W. Tell, Jr.
                                        ------------------------------------
                                        Name:  Nicholas W. Tell, Jr.
                                        Title: Managing Director

                                     By: /s/ Gary A. Hobart
                                        ------------------------------------
                                        Name:  Gary A. Hobart
                                        Title: Vice President

                                     Shared Opportunity Fund IIB LLC
                                     By: TCW Asset Management Company
                                          as its Investment Advisor

                                     By: /s/ Nicholas W. Tell, Jr.
                                        ------------------------------------
                                        Name:  Nicholas W. Tell, Jr.
                                        Title: Managing Director

                                     By: /s/ Gary A. Hobart
                                        ------------------------------------
                                        Name:  Gary A. Hobart
                                        Title: Vice President

                                       28

<PAGE>

                                     TCW Shared Opportunity Fund IV, L.P. and
                                     TCW Shared Opportunity Fund IVB, L.P.
                                     By: TCW Asset Management Company
                                          Its Investment Advisor

                                     By: /s/ Nicholas W. Tell, Jr.
                                        ------------------------------------
                                        Name:  Nicholas W. Tell, Jr.
                                        Title: Managing Director

                                     By: /s/ Gary A. Hobart
                                        ------------------------------------
                                        Name:  Gary A. Hobart
                                        Title: Vice President

                                     AIMCO CDO, Series 2000-A
                                     By: Allstate Investment Management Company
                                           Its Collateral Manager

                                     By: TCW Asset Management Company
                                          Its Investment Advisor

                                     By: /s/ Nicholas W. Tell, Jr.
                                        ------------------------------------
                                        Name:  Nicholas W. Tell, Jr.
                                        Title: Managing Director

                                     By: /s/ Gary A. Hobart
                                        ------------------------------------
                                        Name:  Gary A. Hobart
                                        Title: Vice President

                                     TCW High Income Partners, Ltd.
                                     By: TCW Asset Management Company,
                                         its Investment Advisor

                                     By: /s/ Nicholas W. Tell, Jr.
                                        ------------------------------------
                                        Name:  Nicholas W. Tell, Jr.
                                        Title: Managing Director

                                       29

<PAGE>

                                     TCW High Income Partners II, Ltd.
                                     By: TCW Asset Management Company,
                                         its Investment Advisor

                                     By: /s/ Nicholas W. Tell, Jr.
                                        ------------------------------------
                                        Name:  Nicholas W. Tell, Jr.
                                        Title: Managing Director

                                     METROPOLITAN LIFE INSURANCE COMPANY

                                     By: /s/ Jacqueline D. Jenkins
                                        ------------------------------------
                                        Name: Jacqueline D. Jenkins
                                        Title: Managing Director

                                     EXIS DIFFERENTIAL HOLDINGS, LTD.

                                     By: /s/ Chris Kane
                                        ------------------------------------
                                        Name: Chris Kane
                                        Title: Portfolio Manager

                                     ACP HOLDING COMPANY

                                     By: /s/ Gary LaChey
                                        ------------------------------------
                                        Name: Gary LaChey
                                        Title:

                                     NEENAH FOUNDRY COMPANY

                                     By: /s/ Gary LaChey
                                        ------------------------------------
                                        Name: Gary LaChey
                                        Title:

                                     ADVANCED CAST PRODUCTS, INC.

                                     By: /s/ Gary LaChey
                                        ------------------------------------
                                        Name: Gary LaChey
                                        Title:

                                       30

<PAGE>

                                     DALTON CORPORATION

                                     By: /s/ Gary LaChey
                                         --------------------------------------
                                        Name: Gary LaChey
                                        Title: VP - Finance, Treasurer,
                                               Secty. & CFO

                                     DALTON CORPORATION, WARSAW
                                     MANUFACTURING FACILITY

                                     By: /s/ Gary LaChey
                                         --------------------------------------
                                        Name: Gary LaChey
                                        Title: VP - Finance, Treasurer,
                                               Secty. & CFO

                                     DALTON CORPORATION, STRYKER
                                     MACHINING FACILITY CO.

                                     By: /s/ Gary LaChey
                                         ---------------------------------------
                                        Name: Gary LaChey
                                        Title: VP - Finance, Treasurer,
                                               Secty. & CFO

                                     DALTON CORPORATION, ASHLAND
                                     MANUFACTURING FACILITY

                                     By: /s/ Gary LaChey
                                         ---------------------------------------
                                        Name: Gary LaChey
                                        Title: VP - Finance, Treasurer,
                                               Secty. & CFO

                                     DALTON CORPORATION, KENDALLVILLE
                                     MANUFACTURING FACILITY

                                     By: /s/ Gary LaChey
                                         ---------------------------------------
                                        Name: Gary LaChey
                                        Title: VP - Finance, Treasurer,
                                               Secty. & CFO

                                     DEETER FOUNDRY, INC.

                                     By: /s/ Gary LaChey
                                         ---------------------------------------
                                        Name: Gary LaChey
                                        Title: VP - Finance, Treasurer,
                                               Secty. & CFO

                                       31

<PAGE>

                                     GREGG INDUSTRIES, INC.

                                     By: /s/ Gary LaChey
                                         ---------------------------------------
                                        Name: Gary LaChey
                                        Title: VP - Finance, Treasurer,
                                               Secty. & CFO

                                     MERCER FORGE CORPORATION

                                     By: /s/ Gary LaChey
                                         ---------------------------------------
                                        Name: Gary LaChey
                                        Title: VP - Finance, Treasurer,
                                               Secty. & CFO

                                     A&M SPECIALTIES, INC.

                                     By: /s/ Gary LaChey
                                         ---------------------------------------
                                        Name: Gary LaChey
                                        Title: VP - Finance, Treasurer,
                                               Secty. & CFO

                                     NEENAH TRANSPORT, INC.

                                     By: /s/ Gary LaChey
                                         ---------------------------------------
                                        Name: Gary LaChey
                                        Title: VP - Finance, Treasurer,
                                               Secty. & CFO

                                     CAST ALLOYS, INC.

                                     By: /s/ Gary LaChey
                                         ---------------------------------------
                                        Name: Gary LaChey
                                        Title: VP - Finance, Treasurer,
                                               Secty. & CFO

                                     BELCHER CORPORATION

                                     By: /s/ Gary LaChey
                                         ---------------------------------------
                                        Name: Gary LaChey
                                        Title: VP - Finance, Treasurer,
                                               Secty. & CFO

                                     PEERLESS CORPORATION

                                     By: /s/ Gary LaChey
                                         ---------------------------------------
                                        Name: Gary LaChey
                                        Title: VP - Finance, Treasurer,
                                               Secty. & CFO

                                       32

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