Document:

EX-10.3

PLEDGE AND SECURITY AGREEMENT

This PLEDGE AND SECURITY AGREEMENT, dated as of June 6, 2006 (as amended, supplemented,
amended and restated or otherwise modified from time to time, this “Security Agreement”),
is made by FERRO CORPORATION, an Ohio corporation (the “Company”), and each U.S. Subsidiary
(other than an SPV) (terms used in the preamble and the recitals have the definitions set forth in
or incorporated by reference in Article I) from time to time a party to this Security
Agreement (each individually a “Grantor” and collectively, the “Grantors”), in
favor of J. P. MORGAN TRUST COMPANY, NATIONAL ASSOCIATION, as Trustee (together with its successors
and assigns, the “Trustee”) for the benefit of the Trustee and the Holders under the
Indentures (collectively, the “Secured Parties”).

W I T N E S S E T H

:

WHEREAS, the Company and the Trustee are parties to (i) that certain Indenture dated as of May
1, 1993 between the Company and the Trustee (successor-in-interest to Society National Bank), as
the same may be amended, supplemented, amended and restated or otherwise modified from time to
time, and (b) that certain Indenture dated as of March 25, 1998, between the Company and the
Trustee (successor-in-interest to Chase Manhattan Trust Company, National Association), as the same
may be amended, supplemented, amended and restated or otherwise modified from time to time (each an
“Indenture” and, collectively, the “Indentures”);

WHEREAS, Section 1008 of each Indenture requires the Company, in connection with its
incurrence of certain Debt secured by a mortgage, pledge, lien, security interest, conditional
sale, title retention agreement or other similar encumbrance on any Principal Domestic
Manufacturing Property of the Company or any Domestic Subsidiary, or any shares of stock or Debt of
any Domestic Subsidiary, to grant equal and ratable liens upon and security interests in certain
assets to the Trustee to secure the Outstanding Securities;

WHEREAS, pursuant to that certain Credit Agreement dated as of June 6, 2006 (as the same may
be amended, supplemented, amended and restated or otherwise modified from time to time, the
“Credit Agreement”) by and among the Company, the designated borrowers from time to time
party thereto (together with the Company, each individually, a “Borrower” and collectively,
the “Borrowers”), the various financial institutions and other Persons from time to time
party thereto (the “Lenders”), Credit Suisse, Cayman Islands Branch, as the Term Loan
Administrative Agent, National City Bank as the Revolving Loan Administrative Agent and the
Collateral Agent, and Keybank National Association, as the Documentation Agent, the Grantors are
simultaneously herewith granting security interests in the Collateral in favor of National City
Bank, as Collateral Agent;

WHEREAS, the Grantors and the Trustee are entering into this Security Agreement pursuant to
Section 1008 of each Indenture for the purpose of granting the Trustee security interests in the
Collateral that are equal and ratable with the security interests that the Grantors are granting to
the Collateral Agent simultaneously herewith;

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, each Grantor hereby makes the following representations and warranties to the
Trustee and hereby covenants and agrees with the Trustee, for the benefit of the Secured Parties,
as follows:

ARTICLE I

DEFINITIONS

SECTION 1.1 Certain Terms. The following terms (whether or not underscored) when used
in this Security Agreement, including its preamble and recitals, shall have the following meanings
(such definitions to be equally applicable to the singular and plural forms thereof):

“Borrowers” is defined in the preamble.

“Collateral” is defined in Section 2.1.

“Collateral Account” is defined in clause (b) of Section 4.3.

“Collateral Agent” means National City Bank, in its capacity as collateral agent under
the Credit Agreement (in such capacity, together with any successors or assigns).

“Collateral Agent Security Agreement” means that certain Pledge and Security Agreement
dated as of June [ ], 2006 (as amended, supplemented, amended and restated or otherwise modified
from time to time) by the Grantors in favor of the Collateral Agent.

“Collateral Sharing Agreement” means that certain Collateral Sharing Agreement dated
as of June 6, 2006 (as amended, supplemented, amended and restated or otherwise modified from time
to time) by and among the Company, the other Grantors party thereto, the Collateral Agent and the
Trustee.

“Computer Hardware and Software Collateral” means:

(a) all computer and other electronic data processing hardware, integrated computer
systems, central processing units, memory units, display terminals, printers, features,
computer elements, card readers, tape drives, hard and soft disk drives, cables, electrical
supply hardware, generators, power equalizers, accessories and all peripheral devices and
other related computer hardware, including all operating system software, utilities and
application programs in whatsoever form;

(b) all software programs (including both source code, object code and all related
applications and data files), designed for use on the computers and electronic data
processing hardware described in clause (a) above;

(c) all firmware associated therewith;

(d) all documentation (including flow charts, logic diagrams, manuals, guides,
specifications, training materials, charts and pseudo codes) with respect to such hardware,
software and firmware described in the preceding clauses (a) through (c);
and

(e) all rights with respect to all of the foregoing, including copyrights, licenses,
options, warranties, service contracts, program services, test rights, maintenance rights,
support rights, improvement rights, renewal rights and indemnifications and any
substitutions, replacements, improvements, error corrections, updates, additions or model
conversions of any of the foregoing.

“Control Agreement” means an authenticated record in form and substance satisfactory
to the Trustee, that provides for the Trustee or the Collateral Agent to have “control” (as defined
in the UCC) over certain Collateral.

“Copyright Collateral” means all copyrights of the Grantors, registered or
unregistered and whether published or unpublished, now or hereafter in force throughout the world
including all of the Grantors’ rights, titles and interests in and to all copyrights registered in
the United States Copyright Office or anywhere else in the world and also including the copyrights
referred to in Item A of Schedule V, and registrations and recordings thereof and
all applications for registration thereof, whether pending or in preparation, all copyright
licenses, including each copyright license referred to in Item B of Schedule V, the
right to sue for past, present and future infringements of any of the foregoing, all rights
corresponding thereto, all extensions and renewals of any thereof and all Proceeds of the
foregoing, including licenses, royalties, income, payments, claims, damages and Proceeds of suit,
which are owned or licensed by the Grantors.

“Credit Agreement” is defined in the third recital.

“Credit Agreement Lien” means any security interest in personal property in favor of
the Collateral Agent pursuant to the Credit Agreement for the benefit of the Secured Parties (under
and as defined in the Credit Agreement) under the Credit Agreement.

“Distributions” means all dividends paid on Capital Stock pledged hereunder,
liquidating dividends paid on Capital Stock pledged hereunder, shares (or other designations) of
Capital Stock resulting from (or in connection with the exercise of) stock splits,
reclassifications, warrants, options, non-cash dividends, mergers, consolidations, and all other
distributions (whether similar or dissimilar to the foregoing) on or with respect to any Capital
Stock constituting Collateral.

“General Intangibles” means all “general intangibles” and all “payment intangibles”,
each as defined in the UCC, and shall include all interest rate or currency protection or hedging
arrangements, all tax refunds, all licenses, permits, concessions and authorizations and all
Intellectual Property Collateral (in each case, regardless of whether characterized as general
intangibles under the UCC).

“Grantor” and “Grantors” are defined in the preamble.

“Intellectual Property Collateral” means, collectively, the Computer Hardware and
Software Collateral, the Copyright Collateral, the Patent Collateral, the Trademark Collateral and
the Trade Secrets Collateral.

“Organic Document” means, relative to any Grantor, as applicable, its certificate or
articles of incorporation, articles and memorandum of association, by-laws, certificate of
partnership, partnership agreement, certificate of formation, limited liability agreement,
operating agreement and all shareholder agreements, voting trusts and similar arrangements
applicable to any of such Grantor’s Capital Stock pledged hereunder.

“Patent Collateral” means:

(a) inventions and discoveries, whether patentable or not, all letters patent and
applications for letters patent throughout the world, including all patent applications in
preparation for filing and each patent and patent application referred to in Item A
of Schedule III;

(b) all reissues, divisions, continuations, continuations-in-part, extensions, renewals
and reexaminations of any of the items described in clause (a);

(c) all patent licenses, and other agreements providing such Grantor with the right to
use any items of the type referred to in clauses (a) and (b) above,
including each patent license referred to in Item B of Schedule III; and

(d) all Proceeds of, and rights associated with, the foregoing (including licenses,
royalties income, payments, claims, damages and Proceeds of infringement suits), the right
to sue third parties for past, present or future infringements of any patent or patent
application, and for breach or enforcement of any patent license.

“Permitted Lien” means a Lien permitted under Section 7.2.3 of the Credit Agreement.

“Secured Obligations” shall mean and include:

(i) the principal of (and premium, if any) and interest (including default interest, if
any) on any Outstanding Securities (under and as defined in each Indenture), and

(ii) all other obligations and liabilities owing by the Company under the Indentures
(including, without limitation, indemnities, fees and other amounts payable thereunder,
including, without limitation, the obligation of the Company to reimburse the Trustee for
reasonable compensation, expenses, disbursements and advances as described in Section 607 of
each Indenture), whether primary, secondary, direct, contingent, fixed or otherwise,

in all cases whether now existing, or hereafter incurred or arising, including any such interest or
other amounts incurred or arising during the pendency of any bankruptcy, insolvency,
reorganization, receivership or similar proceeding, regardless of whether allowed or allowable in
such proceeding or subject to an automatic stay under section 362(a) of the Bankruptcy Code in
Title 11 of the United States Code, as amended, modified, superseded or replaced from time to time.

“Securities Act” is defined in clause (a) of Section 6.2.

“Secured Party” and “Secured Parties” are defined in the preamble.

“Security Agreement” is defined in the preamble.

“Specified Default” means the occurrence and continuance of an Event of Default under
Section 501 of each Indenture.

“Termination Date” means the earlier of the date on which (i) the secured Debt
(including any secured Debt incurred to refinance such secured Debt) which caused the Grantors to
secure the Secured Obligations either (a) has been indefeasibly paid in full or (b) is no longer
secured by any lien upon, security interest in or other encumbrance upon any assets of the
Grantors, or (ii) all Secured Obligations have been indefeasibly paid in full; provided
that if at any time secured Debt is incurred to refinance existing secured Debt, the Termination
Date shall not occur as a result of the payment or other satisfaction of the existing secured Debt.

“Trademark Collateral” means :

(a) (i) all trademarks, trade names, corporate names, company names, business names,
fictitious business names, trade styles, service marks, certification marks, collective
marks, logos and other source or business identifiers, and all goodwill of the business
associated therewith, now existing or hereafter adopted or acquired including those referred
to in Item A of Schedule IV, whether currently in use or not, all
registrations and recordings thereof and all applications in connection therewith, whether
pending or in preparation for filing, including registrations, recordings and applications
in the United States Patent and Trademark Office or in any office or agency of the United
States, or any State thereof or any other country or political subdivision thereof or
otherwise, and all common-law rights relating to the foregoing, and (ii) the right to obtain
all reissues, extensions or renewals of the foregoing (collectively referred to as the
“Trademark”);

(b) all trademark licenses for the grant by or to such Grantor of any right to use any
trademark, including each trademark license referred to in Item B of Schedule
IV; and

(c) all of the goodwill of the business connected with the use of, and symbolized by
the items described in, clause (a), and to the extent applicable clause (b);

(d) the right to sue third parties for past, present and future infringements of any
Trademark Collateral described in clause (a) and, to the extent applicable,
clause (b); and

(e) all Proceeds of, and rights associated with, the foregoing, including any claim by
such Grantor against third parties for past, present or future infringement or dilution of
any Trademark, Trademark registration or Trademark license, or for any injury to the
goodwill associated with the use of any such Trademark or for breach or enforcement of any
Trademark license and all rights corresponding thereto throughout the world.

“Trade Secrets Collateral” means all common law and statutory trade secrets and all
other confidential, proprietary or useful information and all know-how obtained by or used in or
contemplated at any time for use in the business of a Grantor (all of the foregoing being
collectively called a “Trade Secret”), whether or not such Trade Secret has been reduced to
a writing or other tangible form, including all Documents and things embodying, incorporating or
referring in any way to such Trade Secret, all Trade Secret licenses, including each Trade Secret
license referred to in Schedule VI, and including the right to sue for and to enjoin and to
collect damages for the actual or threatened misappropriation of any Trade Secret and for the
breach or enforcement of any such Trade Secret license.

SECTION 1.2 Credit Agreement Definitions. Unless otherwise defined herein or the
context otherwise requires, terms used in this Security Agreement, including its preamble and
recitals, have the meanings provided in the Credit Agreement and the Indentures, as applicable. To
the extent there is a conflict between a definition set forth in the Credit Agreement and the
Indentures, the definition set forth in the Indentures shall control.

SECTION 1.3 UCC Definitions. When used herein the terms Account, Certificated
Securities, Chattel Paper, Commercial Tort Claim, Commodity Account, Commodity Contract, Deposit
Account, Document, Electronic Chattel Paper, Equipment, Goods, Instrument, Inventory, Investment
Property, Letter-of-Credit Rights, Proceeds, Promissory Notes, Securities Account, Security
Entitlement, Supporting Obligations and Uncertificated Securities have the meaning provided in
Article 8 or Article 9, as applicable, of the UCC. Letters of Credit has the meaning provided in
Section 5-102 of the UCC.

ARTICLE II

SECURITY INTEREST

SECTION 2.1 Grant of Security Interest. Each Grantor hereby grants to the Trustee,
for the benefit of the Secured Parties, a continuing security interest, and a right to set-off
against, any and all right, title and interest of such Grantor’s in and to the following property,
whether now or hereafter existing, owned or acquired by such Grantor, and wherever located
(collectively, the “Collateral”):

(a) Accounts;

(b) Chattel Paper;

(c) Commercial Tort Claims listed on Item I of Schedule II (as such
schedule may be amended or supplemented from time to time);

(d) Deposit Accounts;

(e) Documents;

(f) General Intangibles;

(g) Goods;

(h) Instruments;

(i) Investment Property;

(j) Letter-of-Credit Rights and Letters of Credit (other than such as is collateral for
or issued subject to or in connection with the Company’s existing accounts receivable
securitization program);

(k) Supporting Obligations;

(l) all books, records, writings, databases, computer programs, tapes, disks, related
data processing software (owned by such Grantor or in which it has an assignable interest),
information and other property relating to, used or useful in connection with, evidencing,
embodying, incorporating or referring to, any of the foregoing in this Section or are
otherwise helpful in the collection or realization thereupon;

(m) all Proceeds of the foregoing and, to the extent not otherwise included, (A) all
payments under insurance (whether or not the Collateral Agent is the loss payee thereof) and
(B) all tort claims; and

(n) all other property and rights of every kind and description and interests therein.

Notwithstanding the foregoing, the term “Collateral” shall not include:

(i) such Grantor’s real property interests (including fee real estate,
leasehold interests and fixtures);

(ii) any General Intangibles or other rights arising under any contracts,
instruments, licenses or other documents as to which the grant of a security
interest would (A) constitute a violation of a valid and enforceable restriction in
favor of a third party on such grant, unless and until any required consents shall
have been obtained, or (B) give any other party to such contract, instrument,
license or other document the right to terminate its obligations thereunder;

(iii) Investment Property consisting of Capital Stock of a Foreign Subsidiary
of such Grantor, in excess of 65% of the total combined voting power of all Capital
Stock of each such Foreign Subsidiary, except that such 65% limitation shall not
apply to a Foreign Subsidiary that (x) is treated as a partnership under the Code or
(y) is not treated as an entity that is separate from (A) such Grantor; (B) any
Person that is treated as a partnership under the Code or (C) any “United States
person” (as defined in Section 7701(a)(30) of the Code);

(iv) any asset, the granting of a security interest in which would be void or
illegal under any applicable governmental law, rule or regulation, or pursuant
thereto would result in, or permit the termination of, such asset;

(v) any asset subject to a Permitted Lien (other than Liens in favor of the
Trustee or the Collateral Agent) to the extent that the grant of other Liens on such
asset (A) would result in a breach or violation of, or constitute a default under,
the agreement or instrument governing such Permitted Lien, (B) would result in the
loss of use of such asset or (C) would permit the holder of such Permitted Lien to
terminate the Grantor’s use of such asset;

(vi) trade receivables and related collateral, credit support and similar
rights sold or contributed pursuant to the Company’s existing accounts receivable
securitization program (other than residual interests therein);

(vii) inventory that has been chemically combined with precious metals
inventory or inventories such that an attempt to separate such inventories would
destroy or substantially devalue the inventory that would otherwise be subject to
this Security Agreement; or

(viii) consigned metals or leased metals that are held as Inventory by such
Grantor but for which title has not yet transferred to such Grantor.

SECTION 2.2 Security for Secured Obligations. This Security Agreement and the
Collateral in which the Trustee is granted a security interest hereunder by the Grantors shall
secure the prompt payment and performance in full when due, whether by lapse of time, acceleration,
mandatory prepayment or otherwise, of the Secured Obligations.

SECTION 2.3 Grantors Remain Liable. Anything herein to the contrary notwithstanding:

(a) the Grantors will remain liable under the contracts and agreements included in the
Collateral to the extent set forth therein, and will perform all of their duties and
obligations under such contracts and agreements to the same extent as if this Security
Agreement had not been executed;

(b) the exercise by the Trustee of any of its rights hereunder will not release any
Grantor from any of its duties or obligations under any such contracts or agreements
included in the Collateral; and

(c) no Secured Party will have any obligation or liability under any contracts or
agreements included in the Collateral by reason of this Security Agreement, nor will any
Secured Party be obligated to perform any of the obligations or duties of any Grantor
thereunder or to take any action to collect or enforce any claim for payment assigned
hereunder.

SECTION 2.4 Intentionally Omitted.

SECTION 2.5 Security Interest Absolute, etc. This Security Agreement shall in all
respects be a continuing, absolute, unconditional and irrevocable grant of security interest, and
shall remain in full force and effect until the Termination Date. All rights of the Trustee and
the security interests granted to the Trustee hereunder, and all obligations of the Grantors
hereunder, shall, in each case, be absolute, unconditional and irrevocable irrespective of:

(a) any lack of validity, legality or enforceability of either Indenture, this Security
Agreement or any other Transaction Document;

(b) the failure of any Secured Party (i) to assert any claim or demand or to enforce
any right or remedy against any Credit Party or any other Person (including any other
Grantor) under the provisions of either Indenture, this Security Agreement, the other
Transaction Documents or otherwise, or (ii) to exercise any right or remedy against any
other guarantor (including any other Grantor) of, or collateral securing, any Secured
Obligations;

(c) any change in the time, manner or place of payment of, or in any other term of, all
or any part of the Secured Obligations, or any other extension, compromise or renewal of any
Secured Obligations;

(d) any reduction, limitation, impairment or termination of any Secured Obligations for
any reason, including any claim of waiver, release, surrender, alteration or compromise, and
shall not be subject to (and each Grantor hereby waives any right to or claim of) any
defense or setoff, counterclaim, recoupment or termination whatsoever by reason of the
invalidity, illegality, nongenuineness, irregularity, compromise, unenforceability of, or
any other event or occurrence affecting, any Secured Obligations or otherwise;

(e) any amendment to, rescission, waiver, or other modification of, or any consent to
or departure from, any of the terms of either Indenture, this Security Agreement or any
other Transaction Document;

(f) any addition, exchange or release of any Collateral or of any Person that is (or
will become) a Grantor (including the Grantors hereunder) of the Secured Obligations, or any
surrender or non-perfection of any collateral, or any amendment to or waiver or release or
addition to, or consent to or departure from, any other guaranty held by any Secured Party
securing any of the Secured Obligations; or

(g) any other circumstance which might otherwise constitute a defense available to, or
a legal or equitable discharge of, any Credit Party, any surety or any guarantor.

SECTION 2.6 Postponement of Subrogation. Each Grantor agrees that it will not
exercise any rights against another Grantor which it may acquire by way of rights of subrogation
under the Indentures, this Security Agreement or any other Transaction Document to which it is a
party. No Grantor shall seek or be entitled to seek any contribution or reimbursement from any
Credit Party, in respect of any payment made under the Indentures, this Security Agreement, any
other Transaction Document or otherwise, until following the Termination Date. Any amount paid to
such Grantor on account of any such subrogation rights prior to the Termination Date shall be held
in trust for the benefit of the Secured Parties and shall immediately be paid and turned over to
the Trustee for the benefit of the Secured Parties in the exact form received by such Grantor (duly
endorsed in favor of the Collateral Agent, if required), to be credited and applied against the
Secured Obligations, whether matured or unmatured, in accordance with Section 6.1. In
furtherance of the foregoing, at all times prior to the Termination Date, such Grantor shall
refrain from taking any action or commencing any proceeding against any Obligor (or its successors
or assigns, whether in connection with a bankruptcy proceeding or otherwise) to recover any amounts
in respect of payments made under this Security Agreement to any Secured Party.

ARTICLE III

REPRESENTATIONS AND WARRANTIES

	 	 	 	 	 
	The Grantors represent and warrant to the Secured Parties as set forth below.
	SECTION 3.1	 	As to Capital Stock of the Subsidiaries, Investment Property.

(a) With respect to any Subsidiary of any Grantor that is

(i) a corporation, business trust, joint stock company or similar Person, all
Capital Stock pledged hereunder issued by such Subsidiary is duly authorized and
validly issued, fully paid and non-assessable, and represented by a certificate; and

(ii) a partnership or limited liability company, no Capital Stock pledged
hereunder issued by such Subsidiary (A) is dealt in or traded on securities
exchanges or in securities markets, (B) expressly provides that such Capital Stock
is a security governed by Article 8 of the UCC or (C) is held in a Securities
Account, except, with respect to this clause (a)(ii), Capital Stock pledged
hereunder (x) for which the Trustee or the Collateral Agent is the registered owner
or (y) with respect to which the issuer has agreed in an authenticated record with
such Grantor and the Trustee or the Collateral Agent to comply with any instructions
of the Trustee or the Collateral Agent (as applicable) without the consent of such
Grantor.

(b) Each Grantor has delivered all Certificated Securities constituting Collateral held
by such Grantor on the Closing Date to the Trustee or the Collateral Agent, together with
duly executed undated blank stock powers, or other equivalent instruments of transfer
acceptable to the Trustee.

(c) With respect to Uncertificated Securities constituting Collateral owned by any
Grantor, such Grantor has caused the issuer thereof either to (i) register the Trustee or
the Collateral Agent as the registered owner of such security or (ii) agree in an
authenticated record with such Grantor and the Trustee or the Collateral Agent that such
issuer will comply with instructions with respect to such security originated by the Trustee
or the Collateral Agent (as applicable) without further consent of such Grantor (any Grantor
that is an Issuer hereby acknowledges and agrees that this Security Agreement constitutes an
agreement in an authenticated record to so comply with such instructions).

(d) The percentage of the issued and outstanding Capital Stock of each Subsidiary
pledged by each Grantor hereunder is as set forth on Schedule I.

SECTION 3.2 Grantor Name, Location, etc.

(a) The jurisdiction in which each Grantor is located for purposes of Sections 9-301
and 9-307 of the UCC is set forth in Item A of Schedule II.

(b) Each location a secured party would have filed a UCC financing statement in the
five years prior to the date hereof to perfect a security interest in Equipment, Inventory
and General Intangibles owned by such Grantor is set forth in Item B of Schedule
II.

(c) The Grantors do not have any trade names other than those set forth in Item
C of Schedule II hereto.

(d) During the four months preceding the date hereof, no Grantor has been known by any
legal name different from the one set forth on the signature page hereto, nor has such
Grantor been the subject of any merger or other corporate reorganization, except as set
forth in Item D of Schedule II hereto.

(e) Each Grantor’s federal taxpayer identification number is (and, during the four
months preceding the date hereof, such Grantor has not had a federal taxpayer identification
number different from that) set forth in Item E of Schedule II hereto.

(f) No Grantor is a party to any federal, state or local government contract except as
set forth in Item F of Schedule II hereto.

(g) No Grantor maintains any Deposit Accounts, Securities Accounts or Commodity
Accounts with any Person, in each case, except as set forth on Item G of
Schedule II.

(h) No Grantor is the beneficiary of any Letters of Credit (other than such as is
collateral for or issued subject to or in connection with the Company’s existing accounts
receivable securitization program), except as set forth on Item H of Schedule
II.

(i) No Grantor has Commercial Tort Claims except as set forth on Item I of
Schedule II.

(j) The name set forth on the signature page attached hereto is the true and correct
legal name of each Grantor.

(k) Each Grantor has obtained a legal, valid and enforceable consent of each issuer of
any Letter of Credit to the assignment of the Proceeds of such Letter of Credit to the
Trustee or the Collateral Agent and no Grantor has consented to, and is otherwise aware of,
any Person (other than the Trustee or the Collateral Agent pursuant hereto) having control
(within the meaning of Section 9-104 of the UCC) over, or any other interest in any of such
Grantor’s rights in respect thereof.

SECTION 3.3 Ownership, No Liens, etc. Each Grantor owns its Collateral free and clear
of any Lien, except for any security interest (a) created by this Security Agreement and (b) in the
case of Collateral other than the Capital Stock of each Subsidiary pledged hereunder, that is a
Permitted Lien. No effective UCC financing statement or other filing similar in effect covering
all or any part of the Collateral is on file in any recording office, except those filed in favor
of the Trustee relating to this Security Agreement, the Collateral Agent relating to the Collateral
Agent Security Agreement, or Permitted Liens.

SECTION 3.4 Possession of Inventory, Control; etc.

(a) Except in the case of Dispositions permitted under the terms of the Credit
Agreement, and except for certain Collateral that is on consignment, each Grantor has, and
agrees that it will maintain, exclusive possession of its Documents, Instruments, Promissory
Notes, Goods, Equipment and Inventory, other than (i) Equipment and Inventory in transit in
the ordinary course of business, (ii) except for Equipment or Inventory that is in the
temporary possession of another Person for purposes of being serviced, Equipment and
Inventory that is in the possession or control of a warehouseman, bailee agent or other
Person (other than a Person controlled by or under common control with any of the Borrowers)
that has been notified of the security interest created in favor of the Secured Parties
pursuant to this Security Agreement (and Grantor will use its best efforts to have such
third Person(s) authenticate a record acknowledging that it holds possession of such
Collateral for the Secured Parties’ benefit and waives any Lien (other than Permitted Liens)
held by it against such Collateral, and (iii) Instruments or Promissory Notes that have been
delivered to the Trustee or the Collateral Agent pursuant to Section 3.5. In the
case of Equipment or Inventory described in clause (ii) above, no lessor or
warehouseman of any premises or warehouse upon or in which such Equipment or Inventory is
located has (i) issued to a Grantor any warehouse receipt or other receipt in the nature of
a warehouse receipt in respect of any such Equipment or Inventory, (ii) issued to Grantor
any Document for any such Equipment or Inventory, (iii) to the knowledge of such Grantor
without inquiry received notification of any Secured Party’s interest (other than the
security interest granted hereunder) in any such Equipment or Inventory or (iv) any Lien on
any such Equipment or Inventory other than Permitted Liens.

(b) Each Grantor is the sole entitlement holder of its Accounts and no other Person
(other than the Trustee pursuant to this Security Agreement, the Collateral Agent pursuant
to the Collateral Agent Security Agreement, or any other Person with respect to Permitted
Liens) has control or possession of, or any other interest in, any of its Accounts or any
other securities or property credited thereto.

SECTION 3.5 Negotiable Documents, Instruments and Chattel Paper. Each Grantor has
delivered to the Trustee or the Collateral Agent possession of all originals of all Documents,
Instruments, Promissory Notes, and tangible Chattel Paper owned or held by such Grantor on the
Closing Date.

SECTION 3.6 Intellectual Property Collateral. Except as disclosed on Schedules
III through V, with respect to any material Intellectual Property Collateral that is
owned by a Grantor:

(a) such Intellectual Property Collateral is valid, subsisting, unexpired and
enforceable and has not been abandoned or adjudged invalid or unenforceable, in whole or in
part except as could not be expected to have a Material Adverse Effect;

(b) such Grantor is the sole and exclusive owner of the entire and unencumbered right,
title and interest in and to such Intellectual Property Collateral and, to Grantor’s
knowledge without inquiry, no claim has been made that the use of such Intellectual Property
Collateral does or may, conflict with, infringe, misappropriate, dilute, misuse or otherwise
violate any of the rights of any third party;

(c) such Grantor has made all necessary filings and recordations to protect its
interest in such Intellectual Property Collateral, including recordations of all of its
interests in the Patent Collateral and Trademark Collateral in the United States Patent and
Trademark Office and in corresponding offices throughout the world, and its claims to the
Copyright Collateral in the United States Copyright Office and in corresponding offices
throughout the world, and, to the extent necessary, has used proper statutory notice in
connection with its use of any material patent, Trademark and copyright in any of the
Intellectual Property Collateral;

(d) such Grantor has taken reasonable steps to safeguard its Trade Secrets and to its
knowledge without inquiry (A) none of the Trade Secrets of such Grantor has been used,
divulged, disclosed or appropriated for the benefit of any other Person other than such
Grantor; (B) no employee, independent contractor or agent of such Grantor has
misappropriated any Trade Secrets of any other Person in the course of the performance of
his or her duties as an employee, independent contractor or agent of such Grantor; and (C)
no employee, independent contractor or agent of such Grantor is in default or breach of any
term of any employment agreement, non-disclosure agreement, assignment of inventions
agreement or similar agreement or contract relating in any way to the protection, ownership,
development, use or transfer of such Grantor’s Intellectual Property Collateral;

(e) to such Grantor’s knowledge without inquiry, no third party is infringing upon any
Intellectual Property owned or used by such Grantor in any material respect, or any of its
respective licensees;

(f) no settlement or consents, covenants not to sue, nonassertion assurances, or
releases have been entered into by such Grantor or to which such Grantor is bound that
adversely affects its rights to own or use any Intellectual Property except as would not
have a Material Adverse Effect;

(g) such Grantor has not made a previous assignment, sale, transfer or agreement
constituting a present or future assignment, sale or transfer of any Intellectual Property
for purposes of granting a security interest or as Collateral that has not been terminated
or released;

(h) such Grantor has executed and delivered to the Trustee, Intellectual Property
Collateral security agreements for all copyrights, patents and Trademarks owned by such
Grantor, including all copyrights, patents and trademarks on Schedule III through
V (as such schedules may be amended or supplemented from time to time);

(i) such Grantor uses adequate standards of quality in the manufacture, distribution,
and sale of all products sold and in the provision of all services rendered under or in
connection with all Trademarks and has taken commercially reasonable action necessary to
insure that all licensees of the Trademarks owned by such Grantor use such adequate
standards of quality;

(j) the consummation of the transactions contemplated by the Credit Agreement and this
Security Agreement will not result in the termination or material impairment of any of the
Intellectual Property Collateral; and

(k) such Grantor owns directly or is entitled to use by license or otherwise, all
Patents, Trademarks, Trade Secrets, Copyrights, mask works, licenses, technology, know-how,
processes and rights with respect to any of the foregoing used in, necessary for or of
importance to the conduct of such Grantor’s business.

SECTION 3.7 Validity, etc.

(a) This Security Agreement creates a valid security interest in the Collateral
securing the payment of the Secured Obligations.

(b) Each Grantor has filed or caused to be filed all UCC-1 financing statements in the
filing office for each Grantor’s jurisdiction of organization listed in

Item A of Schedule II (collectively, the “Filing Statements”)
(or has authenticated and delivered to the Trustee the Filing Statements suitable for filing
in such offices) and has taken all other:

(i) actions necessary to obtain control of the Collateral as provided in
Sections 9-104, 9-105, 9-106 and 9-107 of the UCC; and

(ii) actions necessary to perfect the Collateral Agent’s security interest with
respect to any Collateral evidenced by a certificate of ownership.

(c) Upon the filing of the Filing Statements with the appropriate agencies therefor the
security interests created under this Security Agreement shall constitute a perfected
security interest in the Collateral described on such Filing Statements in favor of the
Trustee to the extent that a security interest therein may be perfected by filing pursuant
to the relevant UCC, prior to all other Liens, except for Permitted Liens (in which case
such security interest shall be second in priority of right only to the Permitted Liens
until the obligations secured by such Permitted Liens have been satisfied) and the Credit
Agreement Lien (which shall at all times remain pari passu to the security interests granted
to the Trustee hereunder).

SECTION 3.8 Authorization, Approval, etc. Except as have been obtained or made and
are in full force and effect, no authorization, approval or other action by, and no notice to or
filing with, any Governmental Authority or any other third party is required either

(a) for the grant by the Grantors of the security interest granted hereby or for the
execution, delivery and performance of this Security Agreement by the Grantors;

(b) for the perfection or maintenance of the security interests hereunder including the
first priority nature (on a pari passu basis with the Credit Agreement Lien, subject to
Permitted Liens) of such security interest (except with respect to the Filing Statements or,
with respect to Intellectual Property Collateral, the recordation of any agreements with the
U.S. Patent and Trademark Office or the U.S. Copyright Office) or the exercise by the
Collateral Agent of its rights and remedies hereunder; or

(c) for the exercise by the Trustee of the voting or other rights provided for in this
Security Agreement, or, except (i) with respect to any securities issued by a Subsidiary of
the Grantors, as may be required in connection with a disposition of such securities by laws
affecting the offering and sale of securities generally, the remedies in respect of the
Collateral pursuant to this Security Agreement and (ii) any “change of control” or similar
filings required by state licensing agencies.

SECTION 3.9 Best Interests. It is in the best interests of each Grantor (other than
the Borrowers) to execute this Security Agreement inasmuch as such Grantor will, as a result of
being a Subsidiary of the Company, derive substantial direct and indirect benefits, and each
Grantor agrees that the Secured Parties are relying on this representation.

ARTICLE IV

COVENANTS

Each Grantor covenants and agrees that, until the Termination Date, such Grantor will perform,
comply with and be bound by the obligations set forth below.

SECTION 4.1 As to Investment Property, etc.

SECTION 4.1.1 Capital Stock of Subsidiaries. No Grantor will allow any of its
Subsidiaries, the Capital Stock of which is pledged hereunder:

(a) that is a corporation, business trust, joint stock company or similar Person, to
issue Uncertificated Securities;

(b) that is a partnership or limited liability company, to (i) issue Capital Stock that
are to be dealt in or traded on securities exchanges or in securities markets,

(ii) expressly provide in its Organic Documents that its Capital Stock are securities
governed by Article 8 of the UCC, or (iii) place such Subsidiary’s Capital Stock in a
Securities Account; and

(c) to issue Capital Stock in addition to or in substitution for the Capital Stock
pledged hereunder, except to such Grantor (and such Capital Stock are immediately pledged to
the Trustee and delivered to the Trustee or the Collateral Agent pursuant to the terms of
this Security Agreement).

SECTION 4.1.2 Investment Property (other than Certificated Securities).

(a) With respect to any Deposit Accounts, Securities Accounts, Commodity Accounts,
Commodity Contracts or Security Entitlements constituting Investment Property owned or held
by any Grantor, such Grantor will use commercially reasonable efforts to cause the
intermediary maintaining such Investment Property to execute a Control Agreement relating to
such Investment Property pursuant to which such intermediary agrees to comply with the
Trustee’s or the Collateral Agent’s instructions with respect to such Investment Property
without further consent by such Grantor.

(b) With respect to any Uncertificated Securities (other than Uncertificated Securities
credited to a Securities Account) constituting Investment Property owned or held by any
Grantor, such Grantor will use its commercially reasonable efforts to cause the issuer of
such securities to either (i) register the Trustee or the Collateral Agent as the registered
owner thereof on the books and records of the issuer or (ii) execute a Control Agreement
relating to such Investment Property pursuant to which the issuer agrees to comply with the
Trustee’s or the Collateral Agent’s instructions with respect to such Uncertificated
Securities without further consent by such Grantor.

SECTION 4.1.3 Certificated Securities (Stock Powers). Each Grantor agrees that all
Certificated Securities, including the Capital Stock delivered by such Grantor pursuant to this
Security Agreement, will be accompanied by duly executed undated blank stock powers, or other
equivalent instruments of transfer reasonably acceptable to the Trustee.

SECTION 4.1.4 Continuous Pledge. Each Grantor will (subject to the terms of the
Credit Agreement and the Indentures) deliver to the Trustee or the Collateral Agent and at all
times keep pledged to the Trustee or the Collateral Agent pursuant hereto, on a first-priority,
perfected basis all Investment Property, all Dividends and Distributions with respect thereto, all
Payment Intangibles to the extent they are evidenced by a Document, Instrument, Promissory Note or
Chattel Paper, and all interest and principal with respect to such Payment Intangibles, and all
Proceeds and rights from time to time received by or distributable to such Grantor in respect of
any of the foregoing Collateral. Each Grantor agrees that it will, promptly following receipt
thereof, deliver to the Trustee or the Collateral Agent possession of all originals of negotiable
Documents, Instruments, Promissory Notes and Chattel Paper that it acquires following the date
hereof.

SECTION 4.1.5 Voting Rights; Dividends, etc. Each Grantor agrees:

(a) promptly upon receipt of notice of the occurrence and continuance of a Specified
Default from the Trustee and without any request therefor by the Trustee, so long as such
Specified Default shall continue, to deliver (properly endorsed where required hereby or
requested by the Collateral Agent) to the Trustee all Dividends and Distributions with
respect to Investment Property, all interest, principal, other cash payments on Payment
Intangibles, and all Proceeds of the Collateral, in each case thereafter received by such
Grantor, all of which shall be held by the Trustee as additional Collateral; and

(b) with respect to Collateral consisting of general partner interests or limited
liability company interests, to promptly modify its Organic Documents to admit the Trustee
as a general partner or member, as applicable, immediately upon the occurrence and
continuance of a Specified Default and so long as the Trustee has notified such Grantor of
the Trustee’s intention to exercise its voting power under this clause,

(i) that the Trustee may exercise (to the exclusion of such Grantor) the voting
power and all other incidental rights of ownership with respect to any Investment
Property constituting Collateral and such Grantor hereby grants the Trustee an
irrevocable proxy, exercisable under such circumstances, to vote such Investment
Property; and

(ii) to promptly deliver to the Trustee such additional proxies and other
documents as may be necessary to allow the Trustee to exercise such voting power.

All dividends, Distributions, interest, principal, cash payments, Payment Intangibles and Proceeds
that may at any time and from time to time be held by such Grantor, but which such Grantor is then
obligated to deliver to the Trustee, shall, until delivery to the Trustee, be held by such Grantor
separate and apart from its other property in trust for the Trustee. The Trustee agrees that
unless a Specified Default shall have occurred and be continuing and the Trustee shall have given
the notice referred to in clause (b), such Grantor will have the exclusive voting power
with respect to any Investment Property constituting Collateral and the Trustee will, upon the
written request of such Grantor, promptly deliver such proxies and other documents, if any, as
shall be reasonably requested by such Grantor which are necessary to allow such Grantor to exercise
that voting power; provided that no vote shall be cast, or consent, waiver, or ratification
given, or action taken by such Grantor that would impair any such Collateral or be inconsistent
with or violate any provision of any Loan Document.

SECTION 4.2 Change of Name, etc. No Grantor will change its name or place of
incorporation or organization or federal taxpayer identification number except upon 30 days’ prior
written notice to the Trustee.

SECTION 4.3 As to Accounts.

(a) Each Grantor shall have the right to collect all Accounts so long as no Specified
Default shall have occurred and be continuing.

(b) Upon (i) the occurrence and continuance of a Specified Default and (ii) the
delivery of notice by the Trustee to each Grantor, all Proceeds of Collateral received by
such Grantor shall be delivered in kind to the Trustee for deposit in a Deposit Account of
such Grantor maintained with the Trustee (together with any other Accounts pursuant to which
any portion of the Collateral is deposited with the Trustee, the “Collateral
Accounts”), and such Grantor shall not commingle any such Proceeds, and shall hold
separate and apart from all other property, all such Proceeds in express trust for the
benefit of the Trustee until delivery thereof is made to the Trustee, except for proceeds
which are or become subject to such Grantor’s existing accounts receivable securitization
program.

(c) Following the delivery of notice pursuant to clause (b)(ii), the Trustee
shall have the right to apply any amount in the Collateral Account to the payment of any
Secured Obligations which are due and payable as it deems appropriate.

(d) With respect to each of the Collateral Accounts, it is hereby confirmed and agreed
that (i) deposits in such Collateral Account are subject to a security interest as
contemplated hereby, (ii) such Collateral Account shall be under the control of the Trustee
and (iii) the Trustee shall have the sole right of withdrawal over such Collateral Account.

SECTION 4.4 As to Grantors’ Use of Collateral.

(a) Subject to clause (b), each Grantor (i) may in the ordinary course of its
business, at its own expense, sell, lease or furnish under the contracts of service any of
the Inventory normally held by such Grantor for such purpose, and use and consume, in the
ordinary course of its business, any raw materials, work in process or materials normally
held by such Grantor for such purpose, (ii) will, at its own expense, endeavor to collect,
as and when due, all amounts due with respect to any of the Collateral, including the taking
of such action with respect to such collection as the Trustee may request following the
occurrence of a Specified Default or, in the absence of such request, as such Grantor may
deem reasonably advisable, and (iii) may grant, in the ordinary course of business, to any
party obligated on any of the Collateral, any rebate, refund or allowance to which such
party may be lawfully entitled, and may accept, in connection therewith, the return of
Goods, the sale or lease of which shall have given rise to such Collateral.

(b) At any time following the occurrence and during the continuance of a Specified
Default, whether before or after the maturity of any of the Secured Obligations, the Trustee
may (i) revoke any or all of the rights of each Grantor set forth in clause (a),
(ii) notify any parties obligated on any of the Collateral to make payment to the Trustee of
any amounts due or to become due thereunder and (iii) enforce collection of any of the
Collateral by suit or otherwise and surrender, release, or exchange all or any part thereof,
or compromise or extend or renew for any period (whether or not longer than the original
period) any indebtedness thereunder or evidenced thereby.

(c) Upon request of the Trustee following the occurrence and during the continuance of
a Specified Default, each Grantor will, at its own expense, notify any parties obligated on
any of the Collateral to make payment to the Trustee of any amounts due or to become due
thereunder.

(d) At any time following the occurrence and during the continuation of a Specified
Default, the Trustee may endorse, in the name of such Grantor, any item, howsoever received
by the Trustee, representing any payment on or other Proceeds of any of the Collateral.

SECTION 4.5 As to Intellectual Property Collateral. Each Grantor covenants and agrees
to comply with the following provisions as such provisions relate to any Intellectual Property
Collateral material to the operations or business of such Grantor:

(a) such Grantor will not (i) do or fail to perform any act whereby any of the Patent
Collateral may lapse or become abandoned or dedicated to the public or unenforceable, (ii)
permit any of its licensees to (A) fail to continue to use any of the Trademark Collateral
in order to maintain all of the Trademark Collateral in full force free from any claim of
abandonment for non-use, (B) fail to maintain as in the past the quality of products and
services offered under all of the Trademark Collateral, (C) fail to employ all of the
Trademark Collateral registered with any federal or state or foreign authority with an
appropriate notice of such registration, (D) adopt or use any other Trademark which is
confusingly similar or a colorable imitation of any of the Trademark Collateral, (E) use any
of the Trademark Collateral registered with any federal, state or foreign authority except
for the uses for which registration or application for registration of all of the Trademark
Collateral has been made or (F) do or permit any act or knowingly omit to do any act whereby
any of the Trademark Collateral may lapse or become invalid or unenforceable, or (iii) do or
permit any act or knowingly omit to do any act whereby any of the Copyright Collateral or
any of the Trade Secrets Collateral may lapse or become invalid or unenforceable or placed
in the public domain except upon expiration of the end of an unrenewable term of a
registration thereof, unless, in the case of any of the foregoing requirements in
clauses (i), (ii) and (iii), such Grantor shall either (x)
reasonably and in good faith determine that any of such Intellectual Property Collateral is
of negligible economic value to such Grantor, or (y) the loss of the Intellectual Property
Collateral would not have a Material Adverse Effect on the business;

(b) such Grantor shall promptly notify the Trustee if it knows, or has reason to know,
that any application or registration relating to any material item of the Intellectual
Property Collateral may become abandoned or dedicated to the public or placed in the public
domain or invalid or unenforceable, or of any adverse determination or development
(including the institution of, or any such determination or development in, any proceeding
in the United States Patent and Trademark Office, the United States Copyright Office or any
foreign counterpart thereof or any court) regarding such Grantor’s ownership of any of the
Intellectual Property Collateral, its right to register the same or to keep and maintain and
enforce the same;

(c) in the event that a Grantor or any of its agents, employees, designees or licensees
files an application for the registration of any Intellectual Property Collateral with the
United States Patent and Trademark Office, the United States Copyright Office or any similar
office or agency in any other country or any political subdivision thereof, it will promptly
so inform the Trustee, and upon request of the Trustee (subject to the terms of the
Indentures), execute and deliver all agreements, instruments and documents as the Trustee
may request to evidence the Trustee’s security interest in such Intellectual Property
Collateral;

(d) such Grantor will take all necessary steps, including in any proceeding before the
United States Patent and Trademark Office, the United States Copyright Office or (subject to
the terms of the Credit Agreement) any similar office or agency in any other country or any
political subdivision thereof, to maintain and pursue any application (and to obtain the
relevant registration) filed with respect to, and to maintain any registration of, the
Intellectual Property Collateral, including the filing of applications for renewal,
affidavits of use, affidavits of incontestability and opposition, interference and
cancellation proceedings and the payment of fees and taxes (except to the extent that
dedication, abandonment or invalidation is permitted under the foregoing clause (a)
or (b)); and

(e) such Grantor will promptly (but no less than twice annually) execute and deliver to
the Trustee (as applicable) a Patent Security Agreement, Trademark Security Agreement and/or
Copyright Security Agreement, as the case may be, in the forms of Exhibit A,
Exhibit B and Exhibit C hereto following its obtaining an interest in any
such Intellectual Property, and shall execute and deliver to the Trustee any other document
required to acknowledge or register or perfect the Trustee’s interest in any part of such
item of Intellectual Property Collateral unless such Grantor shall determine in good faith
(with the consent of the Trustee) that any Intellectual Property Collateral is of negligible
economic value to such Grantor.

SECTION 4.6 As to Letter-of-Credit Rights.

(a) Each Grantor, by granting a security interest in its Letter-of-Credit Rights (other
than such as is collateral for or issued subject to or in connection with the Borrowers’
existing accounts receivable securitization programs) to the Trustee, intends to (and hereby
does) collaterally assign to the Trustee its rights (including its contingent rights ) to
the Proceeds of all Letter-of-Credit Rights of which it is or hereafter becomes a
beneficiary or assignee. Such Grantor will promptly use its commercially reasonable efforts
to cause the issuer of each Letter of Credit and each nominated person (if any) with respect
thereto to consent to such assignment of the Proceeds thereof in a consent agreement in form
and substance satisfactory to the Trustee and deliver written evidence of such consent to
the Trustee.

(b) Upon the occurrence of a Specified Default, such Grantor will, promptly upon
request by the Trustee, (i) notify (and such Grantor hereby authorizes the Trustee to
notify) the issuer and each nominated person with respect to each of the Letters of Credit
that the Proceeds thereof have been assigned to the Trustee hereunder and any payments due
or to become due in respect thereof are to be made directly to the Trustee and (ii) arrange
for the Trustee to become the transferee beneficiary Letter of Credit.

SECTION 4.7 As to Commercial Tort Claims. Each Grantor covenants and agrees that,
until the payment in full of the Secured Obligations and termination of all Commitments, with
respect to any Commercial Tort Claim hereafter arising, it shall deliver to the Trustee a
supplement in form and substance satisfactory to the Trustee, together with all supplements to
schedules thereto identifying such new Commercial Tort Claims.

SECTION 4.8 Electronic Chattel Paper and Transferable Records. If any Grantor at any
time holds or acquires an interest in any electronic chattel paper or any “transferable record,” as
that term is defined in Section 201 of the U.S. Federal Electronic Signatures in Global and
National Commerce Act, or in Section 16 of the U.S. Uniform Electronic Transactions Act as in
effect in any relevant jurisdiction, with a value in excess of $1,000,000, such Grantor shall
promptly notify the Trustee thereof and, at the request of the Trustee, shall take such action as
the Trustee may request to vest in the Trustee control under Section 9-105 of the UCC of such
electronic chattel paper or control under Section 201 of the Federal Electronic Signatures in
Global and National Commerce Act or, as the case may be, Section 16 of the Uniform Electronic
Transactions Act, as so in effect in such jurisdiction, of such transferable record. The Trustee
agrees with such Grantor that the Trustee will arrange, pursuant to procedures satisfactory to the
Trustee and so long as such procedures will not result in the Trustee’s loss of control, for the
Grantor to make alterations to the electronic chattel paper or transferable record permitted under
Section 9-105 of the UCC or, as the case may be, Section 201 of the U.S. Federal Electronic
Signatures in Global and National Commerce Act or Section 16 of the U.S. Uniform Electronic
Transactions Act for a party in control to allow without loss of control, unless a Specified
Default has occurred and is continuing or would occur after taking into account any action by such
Grantor with respect to such electronic chattel paper or transferable record.

SECTION 4.9 Further Assurances, etc. Each Grantor agrees that, from time to time at
its own expense, it will promptly execute and deliver all further instruments and documents, and
take all further action, that may be necessary or that the Trustee may request, in order to
perfect, preserve and protect any security interest granted or purported to be granted hereby or to
enable the Trustee to exercise and enforce its rights and remedies hereunder with respect to any
Collateral. Without limiting the generality of the foregoing, such Grantor will

(a) from time to time upon the request of the Trustee, promptly deliver to the Trustee
such stock powers, instruments and similar documents, satisfactory in form and substance to
the Trustee, with respect to such Collateral as the Trustee may request and will, from time
to time upon the request of the Trustee, after the occurrence and during the continuance of
any Specified Default, promptly transfer any securities constituting Collateral into the
name of any nominee designated by the Trustee; if any Collateral shall be evidenced by an
Instrument, negotiable Document, Promissory Note or tangible Chattel Paper, deliver and
pledge to the Trustee hereunder such Instrument, negotiable Document, Promissory Note or
tangible Chattel Paper duly endorsed and accompanied by duly executed instruments of
transfer or assignment, all in form and substance satisfactory to the Trustee;

(b) file (and hereby authorizes the Trustee to file) such Filing Statements,
continuation statements, or correction statements, or amendments thereto, and such other
instruments or notices (including any assignment of claim form under or pursuant to the
federal assignment of claims statute, 31 U.S.C. § 3726, any successor or amended version
thereof or any regulation promulgated under or pursuant to any version thereof), as may be
necessary or that the Trustee may request in order to perfect and preserve the security
interests and other rights granted or purported to be granted to the Trustee hereby;

(c) deliver to the Trustee and at all times keep pledged to the Trustee pursuant
hereto, on a first-priority, perfected basis, at the request of the Trustee, all Investment
Property constituting Collateral, all Distributions with respect thereto, and all interest
and principal with respect to Promissory Notes, and all Proceeds and rights from time to
time received by or distributable to such Grantor in respect of any of the foregoing
Collateral;

(d) not take or omit to take any action the taking or the omission of which would
result in any impairment or alteration of any obligation of the maker of any Payment
Intangible or other Instrument constituting Collateral, except as provided in Section
4.4;

(e) not create any tangible Chattel Paper without placing a legend on such tangible
Chattel Paper acceptable to the Trustee indicating that the Trustee has a security interest
in such Chattel Paper;

(f) furnish to the Trustee, from time to time at the Trustee’s request, statements and
schedules further identifying and describing the Collateral and such other reports in
connection with the Collateral as the Trustee may request, all in reasonable detail; and

(g) do all things requested by the Trustee in accordance with this Security Agreement
in order to enable the Trustee or the Collateral Agent to have and maintain control over the
Collateral consisting of Investment Property, Deposit Accounts, Letter-of-Credit-Rights and
Electronic Chattel Paper.

With respect to the foregoing and the grant of the security interest hereunder, each Grantor hereby
authorizes the Trustee to file one or more financing or continuation statements, or correction
statements, and amendments thereto, relative to all or any part of the Collateral. Each Grantor
agrees that a carbon, photographic or other reproduction of this Security Agreement or any UCC
financing statement covering the Collateral or any part thereof shall be sufficient as a UCC
financing statement where permitted by law. Each Grantor hereby authorizes the Trustee to file
financing statements describing as the collateral covered thereby “all of the debtor’s personal
property or assets” or words to that effect, notwithstanding that such wording may be broader in
scope than the Collateral described in this Security Agreement.

SECTION 4.10 Deposit Accounts. Following the occurrence and during the continuance of
a Specified Default, at the request of the Trustee, such Grantor will maintain all of its Deposit
Accounts only with the Trustee or with any depositary institution that has entered into a Control
Agreement in favor of the Trustee.

ARTICLE V

THE TRUSTEE

SECTION 5.1 Trustee Appointed Attorney-in-Fact. Each Grantor hereby irrevocably
appoints the Trustee its attorney-in-fact, with full authority in the place and stead of such
Grantor and in the name of such Grantor or otherwise, from time to time in the Trustee’s
discretion, following the occurrence and during the continuance of a Specified Default, to take any
action and to execute any instrument which the Trustee may deem necessary or reasonably advisable
to accomplish the purposes of this Security Agreement, including:

(a) to ask, demand, collect, sue for, recover, compromise, receive and give acquittance
and receipts for moneys due and to become due under or in respect of any of the Collateral;

(b) to receive, endorse, and collect any drafts or other Instruments, Documents and
Chattel Paper, in connection with clause (a) above;

(c) to file any claims or take any action or institute any proceedings which the
Trustee may deem necessary or desirable for the collection of any of the Collateral or
otherwise to enforce the rights of the Trustee with respect to any of the Collateral; and

(d) to perform the affirmative obligations of such Grantor hereunder.

Each Grantor hereby acknowledges, consents and agrees that the power of attorney granted pursuant
to this Section is irrevocable and coupled with an interest.

SECTION 5.2 Trustee May Perform. If any Grantor fails to perform any agreement
contained herein, the Trustee may itself perform, or cause performance of, such agreement, and the
expenses of the Trustee incurred in connection therewith shall be payable by such Grantor pursuant
to the terms of the Indentures.

SECTION 5.3 Trustee Has No Duty. The powers conferred on the Trustee hereunder are
solely to protect its interest in the Collateral and shall not impose any duty on it to exercise
any such powers. Except for reasonable care of any Collateral in its possession and the accounting
for moneys actually received by it hereunder, the Trustee shall have no duty as to any Collateral
or responsibility for

(a) ascertaining or taking action with respect to calls, conversions, exchanges,
maturities, tenders or other matters relative to any Investment Property, whether or not the
Trustee has or is deemed to have knowledge of such matters, or

(b) taking any necessary steps to preserve rights against prior parties or any other
rights pertaining to any Collateral.

SECTION 5.4 Reasonable Care. The Trustee is required to exercise reasonable care in
the custody and preservation of any of the Collateral in its possession; provided that the
Trustee shall be deemed to have exercised reasonable care in the custody and preservation of any of
the Collateral, if it takes such action for that purpose as each Grantor reasonably requests in
writing at times other than upon the occurrence and during the continuance of any Specified
Default, but failure of the Trustee to comply with any such request at any time shall not in itself
be deemed a failure to exercise reasonable care.

ARTICLE VI

REMEDIES

SECTION 6.1 Certain Remedies. If any Specified Default shall have occurred and be
continuing:

(a) The Trustee may exercise in respect of the Collateral, in addition to other rights
and remedies provided for herein or otherwise available to it, all the rights and remedies
of a Secured Party on default under the UCC (whether or not the UCC applies to the affected
Collateral) and also may

(i) take possession of any Collateral not already in its possession without
demand and without legal process;

(ii) require each Grantor to, and each Grantor hereby agrees that it will, at
its expense and upon request of the Trustee forthwith, assemble all or part of the
Collateral as directed by the Trustee and make it available to the Trustee at a
place to be designated by the Trustee that is reasonably convenient to both parties,

(iii) enter onto the property where any Collateral is located and take
possession thereof without demand and without legal process;

(iv) without notice except as specified below, lease, license, sell or
otherwise dispose of the Collateral or any part thereof in one or more parcels at
public or private sale, at any of the Trustee’s offices or elsewhere, for cash, on
credit or for future delivery, and upon such other terms as the Trustee may deem
commercially reasonable. Each Grantor agrees that, to the extent notice of sale
shall be required by law, at least ten days’ prior notice to such Grantor 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. The Trustee shall not be obligated
to make any sale of Collateral regardless of notice of sale having been given. The
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.

(b) All cash Proceeds received by the Trustee in respect of any sale of, collection
from, or other realization upon, all or any part of the Collateral shall be applied by the
Trustee against, all or any part of the Secured Obligations in accordance with the terms of
the Indentures.

(c) The Trustee may

(i) transfer all or any part of the Collateral into the name of the Trustee or
its nominee, with or without disclosing that such Collateral is subject to the Lien
hereunder,

(ii) notify the parties obligated on any of the Collateral to make payment to
the Trustee of any amount due or to become due thereunder,

(iii) withdraw, or cause or direct the withdrawal, of all funds with respect to
the Collateral Account;

(iv) enforce collection of any of the Collateral by suit or otherwise, and
surrender, release or exchange all or any part thereof, or compromise or extend or
renew for any period (whether or not longer than the original period) any
obligations of any nature of any party with respect thereto,

(v) endorse any checks, drafts, or other writings in any Grantor’s name to
allow collection of the Collateral,

(vi) take control of any Proceeds of the Collateral, and

(vii) execute (in the name, place and stead of any Grantor) endorsements,
assignments, stock powers and other instruments of conveyance or transfer with
respect to all or any of the Collateral.

SECTION 6.2 Securities Laws. If the Trustee shall determine to exercise its right to
sell all or any of the Collateral that are Capital Stock pursuant to Section 6.1, each
Grantor agrees that, upon request of the Trustee, each Grantor will, at its own expense:

(a) execute and deliver, and cause (or, with respect to any issuer which is not a
Subsidiary of such Grantor, use commercially reasonable efforts to cause) each issuer of the
Collateral contemplated to be sold and the directors and officers thereof to execute and
deliver, all such instruments and documents, and do or cause to be done all such other acts
and things, as may be necessary or, in the opinion of the Trustee, reasonably advisable to
register such Collateral under the provisions of the Securities Act of 1933, as from time to
time amended (the “Securities Act”), and cause the registration statement relating
thereto to become effective and to remain effective for such period as prospectuses are
required by law to be furnished, and to make all amendments and supplements thereto and to
the related prospectus which, in the opinion of the Trustee, are necessary or reasonably
advisable, all in conformity with the requirements of the Securities Act and the rules and
regulations of the SEC applicable thereto, or use its commercially reasonable efforts to
exempt the Collateral under the state securities or “Blue Sky” laws and to obtain all
necessary governmental approvals for the sale of the Collateral, as requested by the
Trustee;

(b) if necessary in order to effectuate such a registration or exemption, cause (or,
with respect to any issuer that is not a Subsidiary of such Grantor, use its commercially
reasonable efforts to cause) each such issuer to make available to its security holders, as
soon as practicable, an earnings statement that will satisfy the provisions of Section 11(a)
of the Securities Act; and

(c) do or cause to be done all such other acts and things as may be necessary to make
such sale of the Collateral or any part thereof valid and binding and in compliance with
applicable law.

(d) Each Grantor acknowledges the impossibility of ascertaining the amount of damages
that would be suffered by the Trustee by reason of the failure by such Grantor to perform
any of the covenants contained in this Section and consequently agrees that, if such Grantor
shall fail to perform any of such covenants, it shall pay, as liquidated damages and not as
a penalty, an amount equal to the value (as determined by the Trustee) of such Collateral on
the date the Trustee shall demand compliance with this Section.

SECTION 6.3 Compliance with Restrictions. Each Grantor agrees that in any sale of any
of the Collateral whenever a Specified Default shall have occurred and be continuing, the Trustee
is hereby authorized to comply with any limitation or restriction in connection with such sale as
it may be advised by counsel is necessary in order to avoid any violation of any right(s) of any
third Person or applicable law (including compliance with such procedures as may restrict the
number of prospective bidders and purchasers, require that such prospective bidders and purchasers
have certain qualifications, and restrict such prospective bidders and purchasers to Persons who
will represent and agree that they are purchasing for their own account for investment and not with
a view to the distribution or resale of such Collateral), or in order to obtain any required
approval of the sale or of the purchaser by any third Person or any Governmental Authority or
official, and such Grantor further agrees that such compliance shall not result in such sale being
considered or deemed not to have been made in a commercially reasonable manner, nor shall the
Trustee be liable nor accountable to such Grantor for any discount allowed by the reason of the
fact that such Collateral is sold in compliance with any such limitation or restriction.

SECTION 6.4 Protection of Collateral. The Trustee may from time to time, at its
option, perform any act which any Grantor fails to perform after being requested in writing so to
perform (it being understood that no such request need be given after the occurrence and during the
continuance of a Specified Default) and the Trustee may from time to time take any other action
which the Trustee deems necessary for the maintenance, preservation or protection of any of the
Collateral or of its security interest therein.

ARTICLE VII

MISCELLANEOUS PROVISIONS

SECTION 7.1 Loan Document. This Security Agreement is a Loan Document executed
pursuant to the Credit Agreement and shall (unless otherwise expressly indicated herein) be
construed, administered and applied in accordance with the terms and provisions thereof, including
each Section thereof.

SECTION 7.2 Binding on Successors, Transferees and Assigns; Assignment. This Security
Agreement shall remain in full force and effect until the Termination Date has occurred, shall be
binding upon the Grantors and their successors, transferees and assigns and shall inure to the
benefit of and be enforceable by each Secured Party and its successors, transferees and assigns;
provided that no Grantor may (unless otherwise permitted under the terms of the Credit
Agreement or this Security Agreement) assign any of its obligations hereunder without the prior
written consent of the Trustee.

SECTION 7.3 Amendments, etc. No amendment to or waiver of any provision of this
Security Agreement, nor consent to any departure by any Grantor from its obligations under this
Security Agreement, shall in any event be effective unless the same shall be in writing and signed
by the Trustee and the Grantors and then such waiver or consent shall be effective only in the
specific instance and for the specific purpose for which given.

SECTION 7.4 Notices. All notices and other communications provided for hereunder
shall be in writing or by facsimile and addressed, delivered or transmitted to the appropriate
party at the address or facsimile number of such party specified in the Credit Agreement or at such
other address or facsimile number as may be designated by such party in a notice to the other
party. Any notice or other communication, if mailed and properly addressed with postage prepaid or
if properly addressed and sent by pre-paid courier service, shall be deemed given when received;
any such notice or other communication, if transmitted by facsimile, shall be deemed given when
transmitted and electronically confirmed.

SECTION 7.5 Release of Liens. Upon (a) the Disposition of Collateral in accordance
with the Indentures or the Credit Agreement or (b) the occurrence of the Termination Date, the
security interests granted herein shall automatically terminate with respect to (i) such Collateral
(in the case of clause (a)) or (ii) all Collateral (in the case of clause (b)).
Upon any such Disposition or termination, the Trustee will, at the Grantors’ sole expense, deliver
to the Grantors, without any representations, warranties or recourse of any kind whatsoever, all
Collateral held by the Trustee hereunder, and execute and deliver to the Grantors such documents as
the Grantors shall reasonably request to evidence such termination.

SECTION 7.6 Additional Grantors. Upon the execution and delivery by any other Person
of a supplement in the form of Annex I hereto, such Person shall become a “Grantor”
hereunder with the same force and effect as if it were originally a party to this Security
Agreement and named as a “Grantor” hereunder. The execution and delivery of such supplement shall
not require the consent of any other Grantor hereunder, and the rights and obligations of each
Grantor hereunder shall remain in full force and effect notwithstanding the addition of any new
Grantor as a party to this Security Agreement.

SECTION 7.7 No Waiver; Remedies. In addition to, and not in limitation of
Section 2.5, no failure on the part of the Trustee to exercise, and no delay in exercising,
any right hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of
any right hereunder preclude any other or further exercise thereof or the exercise of any other
right. The remedies herein provided are cumulative and not exclusive of any remedies provided by
law.

SECTION 7.8 Headings. The various headings of this Security Agreement are inserted
for convenience only and shall not affect the meaning or interpretation of this Security Agreement
or any provisions thereof.

SECTION 7.9 Severability. Any provision of this Security Agreement which is
prohibited or unenforceable in any jurisdiction shall, as to such provision and such jurisdiction,
be ineffective to the extent of such prohibition or unenforceability without invalidating the
remaining provisions of this Security Agreement or affecting the validity or enforceability of such
provision in any other jurisdiction.

SECTION 7.10 Governing Law, Entire Agreement, etc. THIS SECURITY AGREEMENT SHALL BE
DEEMED TO BE A CONTRACT MADE UNDER AND GOVERNED BY THE INTERNAL LAWS OF THE STATE OF NEW YORK
(INCLUDING FOR SUCH PURPOSE SECTIONS 5-1401 AND 5-1402 OF THE GENERAL OBLIGATIONS LAW OF THE STATE
OF NEW YORK), EXCEPT TO THE EXTENT THAT THE PERFECTION, EFFECT OF PERFECTION OR NONPERFECTION, AND
PRIORITY OF THE SECURITY INTEREST HEREUNDER, OR REMEDIES HEREUNDER, IN RESPECT OF ANY PARTICULAR
COLLATERAL ARE GOVERNED BY THE LAWS OF A JURISDICTION OTHER THAN THE STATE OF NEW YORK. This
Security Agreement and the other Loan Documents constitute the entire understanding among the
parties hereto with respect to the subject matter hereof and thereof and supersede any prior
agreements, written or oral, with respect thereto.

SECTION 7.11 Counterparts. This Security Agreement may be executed by the parties
hereto in several counterparts, each of which shall be deemed to be an original and all of which
shall constitute together but one and the same agreement. Delivery of an executed counterpart of a
signature page to this Security Agreement by facsimile shall be effective as delivery of a manually
executed counterpart of this Security Agreement.

SECTION 7.12 Collateral Sharing Agreement. Notwithstanding anything herein to the
contrary, the liens and security interests granted to the Trustee pursuant to this Security
Agreement and the exercise of any right or remedy by the Trustee hereunder are subject to the
provisions of the Collateral Sharing Agreement. In the event of any conflict between the terms of
the Collateral Sharing Agreement and this Security Agreement, the terms of the Collateral Sharing
Agreement shall govern.

1

IN WITNESS WHEREOF, each of the parties hereto has caused this Security Agreement to be
duly executed and delivered by its Authorized Officer as of the date first above written.

FERRO CORPORATION

	 	 	 	By:

Name:

Title:

FERRO ELECTRONIC MATERIALS INC.

	 	 	 	By:
     

Name: Rhonda S. Ferguson

Title: Assistant Secretary

FERRO PFANSTIEHL LABORATORIES, INC.

	 	 	 	By:
     

Name: Rhonda S. Ferguson

Title: Assistant Secretary

FERRO COLOR & GLASS CORPORATION

	 	 	 	By:
     

Name: Rhonda S. Ferguson

Title: Secretary

FERRO INTERNATIONAL SERVICES INC.

	 	 	 	By:
     

Name: Rhonda S. Ferguson

Title: Secretary

FERRO CHINA HOLDINGS INC.

	 	 	 	By:
     

Name: Rhonda S. Ferguson

Title: Secretary

2

J.P. MORGAN TRUST COMPANY, NATIONAL ASSOCIATION,

as Trustee

	 	 	 	By:
     

Name: Bridget M. Schessler

3

Title: Vice PresidentSCHEDULE I

to Security Agreement

	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Name of Grantor:	 	 	 	 	 	 

	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Common Stock

	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 

	 
	 	 	 	 	 	 	 	 	 	 
	Issuer (corporate)

	 	Cert. #
	 	# of Shares
	 	Authorized

Shares
	 	Outstanding

Shares
	 	

% of Shares Pledged
	 

	 	 
	 	 
	 	 
	 	 
	 	 

	 	 	 	 	 	 	 	 	 
	 	 	 	 	Limited Liability Company Interests
	Issuer (limited	 	% of Limited Liability	 	Type of Limited Liability
	liability company)	 	Company Interests	 	Company Interests Pledged
	 	 	 	 	Pledged	 	 	 	 

	 	 	 	 	 	 	 	 	 
	 	 	 	Partnership Interests
	Issuer (partnership)	 	 	% of Partnership	 	% of Partnership
	 	 	 	Interests Owned	 	Interests Pledged

4

SCHEDULE II

to Security Agreement

	Item A.	 	Location of each Grantor.

	 	 	 
	Name of Grantor:

	 	Location for purposes of UCC:
	 

	 	 
	 
	 	 
	[GRANTOR]

	 	[LOCATION]
	 

	 	 

	Item B.	 	Filing locations last five years.

	 	 	 
	Name of Grantor:

	 	Filing locations last five years
	 

	 	 
	 
	 	 
	[GRANTOR]

	 	[LOCATION]
	 

	 	 

	Item C.	 	Trade names.

	 	 	 
	Name of Grantor:

	 	Trade Names:
	 

	 	 
	 
	 	 
	[GRANTOR]

	 	

	 

	 	

	Item D.	 	Merger or other corporate reorganization.

	 	 	 
	Name of Grantor:

	 	Merger or other corporate reorganization:
	 

	 	 
	 
	 	 
	[GRANTOR]

	 	

	 

	 	

	Item E.	 	Taxpayer ID numbers.

	 	 	 
	Name of Grantor:

	 	Taxpayer ID numbers:
	 

	 	 
	 
	 	 
	[GRANTOR]

	 	

	 

	 	

Item F. Government Contracts.

	 	 	 
	Name of Grantor:

	 	Description of Contract:
	 

	 	 
	 
	 	 
	[GRANTOR]

	 	

	 

	 	

Item G. Deposit Accounts and Securities Accounts.

	 	 	 
	Name of Grantor:

	 	Description of Deposit Accounts and Securities

Accounts:
	 

	 	 
	 
	 	 
	[GRANTOR]

	 	

	 

	 	

Item H. Letter of Credit Rights.

	 	 	 
	Name of Grantor:

	 	Description of Letter of Credit Rights:
	 

	 	 
	 
	 	 
	[GRANTOR]

	 	

	 

	 	

Item I. Commercial Tort Claims.

	 	 	 
	Name of Grantor:

	 	Description of Commercial Tort Claims:
	 

	 	 
	 
	 	 
	[GRANTOR]

	 	

	 

	 	

	 
	 	 

5

SCHEDULE III

to Security Agreement

Item A. Patents

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Issued Patents	 	 	 	 
	Country	 	Patent No.	 	Issue Date	 	Inventor(s)	 	Title

Pending Patent Applications

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Country	 	Serial No.	 	Filing Date	 	Inventor(s)	 	Title

Patent Applications In Preparation

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Expected	 	 	 	 
	Country	 	Docket No.	 	Filing Date	 	Inventor(s)	 	Title

Item B. Patent Licenses

	 	 	 	 	 	 	 	 	 	 	 
	Country or

	 	 	 	 	 	Effective
	 	Expiration
	 	Subject
	 
	 	 	 	 	 	 	 	 	 	 
	Territory

	 	Licensor
	 	Licensee
	 	   Date  
	 	   Date  
	 	Matter
	 

	 	 
	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 	 	 

6

SCHEDULE IV

to Security Agreement

Item A. Trademarks

	 	 	 	 	 	 	 
	 	 	Registered Trademarks
	 	 
	 
	 	 	 	 	 	 
	 

	 
	 	 	 	 	 	 
	Country

	 	Trademark
	 	Registration No.
	 	Registration Date
	 

	 	 
	 	 
	 	 

Pending Trademark Applications

	 	 	 	 	 	 	 
	Country

	 	Trademark
	 	Serial No.
	 	Filing Date
	 

	 	 
	 	 
	 	 

Trademark Applications In Preparation

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	Expected	 	Products/
	Country	 	Trademark	 	Docket No.	 	Filing Date	 	Services

Item B. Trademark Licenses

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Country or	 	 	 	 	 	 	 	 	 	 	 	 	 	Effective	 	Expiration
	Territory	 	Trademark	 	Licensor	 	Licensee	 	   Date  	 	  	Date   

7

SCHEDULE V

to Security Agreement

Item A. Copyrights/Mask Works

Registered Copyrights/Mask Works

Country Registration No. Registration Date Author(s) Title

Copyright/Mask Work Pending Registration Applications

Country Serial No. Filing Date Author(s) Title

Copyright/Mask Work Registration Applications In Preparation

Expected

Country Docket No. Filing Date Author(s) Title

Item B. Copyright/Mask Work Licenses

8

SCHEDULE VI

to Security Agreement

Trade Secret or Know-How Licenses

9

EXHIBIT A

to Security Agreement

PATENT SECURITY AGREEMENT

This PATENT SECURITY AGREEMENT, dated as of      , 200     (this “Agreement”), is
made by [NAME OF GRANTOR], a      (the “Grantor”), in favor of J.P. MORGAN
TRUST COMPANY, NATIONAL ASSOCIATION, as trustee (together with its successor(s) thereto in such
capacity, the “Trustee”) for the benefit of the Trustee and the Holders under the
Indentures (collectively, the “Secured Parties”).

W I T N E S S E T H :

WHEREAS, this Agreement is made pursuant to Section 1008 of (i) that certain Indenture dated
as of May 1, 1993 between Ferro Corporation (the “Company”) and the Trustee
(successor-in-interest to Society National Bank), as the same may be amended, supplemented, amended
and restated or otherwise modified from time to time, and (b) that certain Indenture dated as of
March 25, 1998, between the Company and the Trustee (successor-in-interest to Chase Manhattan Trust
Company, National Association), as the same may be amended, supplemented, amended and restated or
otherwise modified from time to time (each an “Indenture” and, collectively, the
“Indentures”);

WHEREAS, in connection with the Indentures, the Grantor has executed and delivered a Pledge
and Security Agreement, dated as of June [     ], 2006 (as amended, supplemented, amended and restated
or otherwise modified from time to time, the “Security Agreement”);

WHEREAS, pursuant to the Indentures and pursuant to clause (e) of Section 4.5 of the Security
Agreement, the Grantor is required to execute and deliver this Agreement and to grant to the
Trustee a continuing security interest in all of the Patent Collateral (as defined below) to secure
all Secured Obligations; and

WHEREAS, the Grantor has duly authorized the execution, delivery and performance of this
Agreement; and

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the Grantor agrees, for the benefit of the Trustee, on behalf of the Secured
Parties, as follows:

SECTION 1. Definitions. Unless otherwise defined herein or the context otherwise
requires, terms used in this Agreement, including its preamble and recitals, have the meanings
provided in the Security Agreement.

SECTION 2. Grant of Security Interest. The Grantor hereby assigns, pledges,
hypothecates, charges, mortgages, delivers, and transfers to the Trustee, for the benefit of the
Secured Parties, and hereby grants to the Trustee, for the benefit of the Secured Parties, a
continuing security interest in all of the following property, whether now or hereafter existing or
acquired by the Grantor (the “Patent Collateral”):

(a) all of its letters patent and applications for letters patent throughout the world,
including all patent applications in preparation for filing and each patent and patent
application referred to in Item A of Schedule I attached hereto;

(b) all reissues, divisions, continuations, continuations-in-part, extensions, renewals
and reexaminations of any of the items described in clause (a);

(c) all of its patent licenses, and other agreements providing the Grantor with the
right to use any items of the type referred to in clauses (a) and (b) above, including each
patent license referred to in Item B of Schedule I attached hereto; and

(d) all Proceeds of, and rights associated with, the foregoing (including license
royalties and Proceeds of infringement suits), the right to sue third parties for past,
present or future infringements of any patent or patent application, and for breach or
enforcement of any patent license.

SECTION 3. Security Agreement. This Agreement has been executed and delivered by the
Grantor for the purpose of registering the security interest of the Trustee in the Patent
Collateral with the United States Patent and Trademark Office and corresponding offices in other
countries of the world. The security interest granted hereby has been granted as a supplement to,
and not in limitation of, the security interest granted to the Trustee under the Security
Agreement. The Security Agreement (and all rights and remedies of the Trustee thereunder) shall
remain in full force and effect in accordance with its terms.

SECTION 4. Release of Liens. Upon (i) the Disposition of Patent Collateral in
accordance with Indentures or the Credit Agreement or (ii) the occurrence of the Termination Date,
the security interests granted herein shall automatically terminate with respect to (A) such Patent
Collateral (in the case of clause (i)) or (B) all Patent Collateral (in the case of
clause (ii)). Upon any such Disposition or termination, the Trustee will, at the Grantor’s
sole expense, deliver to the Grantor, without any representations, warranties or recourse of any
kind whatsoever, all Patent Collateral held by the Trustee hereunder, and execute and deliver to
the Grantor such Documents as the Grantor shall reasonably request to evidence such termination.

SECTION 5. Acknowledgment. The Grantor does hereby further acknowledge and affirm
that the rights and remedies of the Trustee with respect to the security interest in the Patent
Collateral granted hereby are more fully set forth in the Security Agreement, the terms and
provisions of which (including the remedies provided for therein) are incorporated by reference
herein as if fully set forth herein.

SECTION 6. Intentionally Omitted.

SECTION 7. Counterparts. This Agreement may be executed by the parties hereto in
several counterparts, each of which shall be deemed to be an original and all of which shall
constitute together but one and the same agreement.

* * * * *

10

IN WITNESS WHEREOF, each of the parties hereto has caused this Agreement to be duly executed
and delivered as of the date first above written.

[NAME OF GRANTOR]

	 	 	 	By:
     

Name:

Title:

J.P. MORGAN TRUST COMPANY, NATIONAL ASSOCIATION,

as Trustee

	 	 	 	By:
     

Name:

Title:

11

SCHEDULE I

to Patent Security Agreement

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Item A. Patents	 	 	 	 	 	 
	Issued Patents	 	 	 	 	 	 
	Country	 	Patent No.	 	Issue Date	 	Inventor(s)	 	Title

Pending Patent Applications

Country Serial No. Filing Date Inventor(s) Title

Patent Applications in Preparation

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Expected	 	 	 	 
	Country	 	Docket No.	 	Filing Date	 	Inventor(s)	 	Title

	 	 	 	 	 	 	 	 	 	 	 
	Item B. Patent Licenses
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Country or

Territory

	 	Licensor
	 	Licensee
	 	Effective

    Date    
	 	Expiration

     Date    
	 	Subject

Matter
	 

	 	 
	 	 
	 	 
	 	 
	 	 

12

EXHIBIT B

to Security Agreement

TRADEMARK SECURITY AGREEMENT

This TRADEMARK SECURITY AGREEMENT, dated as of      , 200     (this “Agreement”),
is made by [NAME OF GRANTOR], a      (the “Grantor”), in favor of J.P. MORGAN
TRUST COMPANY, NATIONAL ASSOCIATION, as trustee (together with its successor(s) thereto in such
capacity, the “Trustee”) for the benefit of the Trustee and the Holders under the
Indentures (collectively, the “Secured Parties”).

W I T N E S S E T H :

WHEREAS, this Agreement is made pursuant to Section 1008 of (i) that certain Indenture dated
as of May 1, 1993 between Ferro Corporation (the “Company”) and the Trustee
(successor-in-interest to Society National Bank), as the same may be amended, supplemented, amended
and restated or otherwise modified from time to time, and (b) that certain Indenture dated as of
March 25, 1998, between the Company and the Trustee (successor-in-interest to Chase Manhattan Trust
Company, National Association), as the same may be amended, supplemented, amended and restated or
otherwise modified from time to time (each an “Indenture” and, collectively, the
“Indentures”);

WHEREAS, in connection with the Indentures, the Grantor has executed and delivered a Pledge
and Security Agreement, dated as of June [     ], 2006 (as amended, supplemented, amended and restated
or otherwise modified from time to time, the “Security Agreement”);

WHEREAS, pursuant to the Credit Agreement and pursuant to clause (e) of Section 4.5 of the
Security Agreement, the Grantor is required to execute and deliver this Agreement and to grant to
the Trustee a continuing security interest in all of the Trademark Collateral (as defined below) to
secure all Secured Obligations; and

WHEREAS, the Grantor has duly authorized the execution, delivery and performance of this
Agreement; and

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the Grantor agrees, for the benefit of the Trustee, on behalf of the Secured
Parties, as follows:

SECTION 1. Definitions. Unless otherwise defined herein or the context otherwise
requires, terms used in this Agreement, including its preamble and recitals, have the meanings
provided in the Security Agreement.

SECTION 2. Grant of Security Interest. The Grantor hereby assigns, pledges,
hypothecates, charges, mortgages, delivers, and transfers to the Trustee, for the benefit of the
Secured Parties, and hereby grants to the Trustee, for the benefit of the Secured Parties, a
continuing security interest in all of the following property, whether now or hereafter existing or
acquired by the Grantor (the “Trademark Collateral”):

(a) (i) all of its Trademarks, trade names, corporate names, company names, business
names, fictitious business names, trade styles, service marks, certification marks,
collective marks, logos and other source or business identifiers, and all goodwill of the
business associated therewith, now existing or hereafter adopted or acquired including those
referred to in Item A of Schedule I hereto, whether currently in use or not,
all registrations and recordings thereof and all applications in connection therewith,
whether pending or in preparation for filing, including registrations, recordings and
applications in the United States Patent and Trademark Office or in any office or agency of
the United States of America or any State thereof or any other country or political
subdivision thereof or otherwise, and all common-law rights relating to the foregoing, and
(ii) the right to obtain all reissues, extensions or renewals of the foregoing (collectively
referred to as the “Trademark”);

(b) all Trademark licenses for the grant by or to the Grantor of any right to use any
Trademark, including each Trademark license referred to in Item B of Schedule
I hereto;

(c) all of the goodwill of the business connected with the use of, and symbolized by
the items described in, clause (a), and to the extent applicable clause (b);

(d) the right to sue third parties for past, present and future infringements of any
Trademark Collateral described in clause (a) and, to the extent applicable, clause (b); and

(e) all Proceeds of, and rights associated with, the foregoing, including any claim by
the Grantor against third parties for past, present or future infringement or dilution of
any Trademark, Trademark registration or Trademark license, or for any injury to the
goodwill associated with the use of any such Trademark or for breach or enforcement of any
Trademark license and all rights corresponding thereto throughout the world.

SECTION 3. Security Agreement. This Agreement has been executed and delivered by the
Grantor for the purpose of registering the security interest of the Trustee in the Trademark
Collateral with the United States Patent and Trademark Office and corresponding offices in other
countries of the world. The security interest granted hereby has been granted as a supplement to,
and not in limitation of, the security interest granted to the Trustee under the Security
Agreement. The Security Agreement (and all rights and remedies of the Trustee thereunder) shall
remain in full force and effect in accordance with its terms.

SECTION 4. Release of Liens. Upon (i) the Disposition of Trademark Collateral in
accordance with the Indentures or the Credit Agreement or (ii) the occurrence of the Termination
Date, the security interests granted herein shall automatically terminate with respect to (A) such
Trademark Collateral (in the case of clause (i)) or (B) all Trademark Collateral (in the
case of clause (ii)). Upon any such Disposition or termination, the Trustee will, at the
Grantor’s sole expense, deliver to the Grantor, without any representations, warranties or recourse
of any kind whatsoever, all Trademark Collateral held by the Trustee hereunder, and execute and
deliver to the Grantor such Documents as the Grantor shall reasonably request to evidence such
termination.

SECTION 5. Acknowledgment. The Grantor does hereby further acknowledge and affirm
that the rights and remedies of the Trustee with respect to the security interest in the Trademark
Collateral granted hereby are more fully set forth in the Security Agreement, the terms and
provisions of which (including the remedies provided for therein) are incorporated by reference
herein as if fully set forth herein.

SECTION 6. Intentionally Omitted.

SECTION 7. Counterparts. This Agreement may be executed by the parties hereto in
several counterparts, each of which shall be deemed to be an original and all of which shall
constitute together but one and the same agreement.

* * * * *

13

IN WITNESS WHEREOF, each of the parties hereto has caused this Agreement to be duly executed
and delivered as of the date first above written.

[NAME OF GRANTOR]

	 	 	 	By:
     

Name:

Title:

J.P. MORGAN TRUST COMPANY, NATIONAL ASSOCIATION,

as Trustee

	 	 	 	By:
     

Name:

Title:

14

SCHEDULE I

to Trademark Security Agreement

Item A. Trademarks

Registered Trademarks

Country Trademark Registration No. Registration Date

Pending Trademark Applications

Country Trademark Serial No. Filing Date

Trademark Applications in Preparation

Expected Products/

Country Trademark
Docket No. Filing Date
Services  

	 	 	 	 	 	 	 	 	 	 	 
	Item B. Trademark Licenses
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Country or

Territory

	 	Trademark
	 	Licensor
	 	Licensee
	 	Effective

     Date    
	 	Expiration

      Date   
	 

	 	 
	 	 
	 	 
	 	 
	 	 

15

EXHIBIT C

to Security Agreement

COPYRIGHT SECURITY AGREEMENT

This COPYRIGHT SECURITY AGREEMENT, dated as of      , 200     (this “Agreement”),
is made by [NAME OF GRANTOR], a      (the “Grantor”), in favor of J.P. MORGAN
TRUST COMPANY, NATIONAL ASSOCIATION, as trustee (together with its successor(s) thereto in such
capacity, the “Trustee”) for the benefit of the Trustee and the Holders under the
Indentures (collectively, the “Secured Parties”).

W I T N E S S E T H :

WHEREAS, this Agreement is made pursuant to Section 1008 of (i) that certain Indenture dated
as of May 1, 1993 between Ferro Corporation (the “Company”) and the Trustee
(successor-in-interest to Society National Bank), as the same may be amended, supplemented, amended
and restated or otherwise modified from time to time, and (b) that certain Indenture dated as of
March 25, 1998, between the Company and the Trustee (successor-in-interest to Chase Manhattan Trust
Company, National Association), as the same may be amended, supplemented, amended and restated or
otherwise modified from time to time (each an “Indenture” and, collectively, the
“Indentures”);

WHEREAS, in connection with the Indentures, the Grantor has executed and delivered a Pledge
and Security Agreement, dated as of June [     ], 2006 (as amended, supplemented, amended and restated
or otherwise modified from time to time, the “Security Agreement”);

WHEREAS, pursuant to the Credit Agreement and pursuant to clause (e) of Section 4.5 of the
Security Agreement, the Grantor is required to execute and deliver this Agreement and to grant to
the Trustee a continuing security interest in all of the Copyright Collateral (as defined below) to
secure all Secured Obligations; and

WHEREAS, the Grantor has duly authorized the execution, delivery and performance of this
Agreement; and

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the Grantor agrees, for the benefit of the Trustee, on behalf of the Secured
Parties, as follows:

SECTION 1. Definitions. Unless otherwise defined herein or the context otherwise
requires, terms used in this Agreement, including its preamble and recitals, have the meanings
provided in the Security Agreement.

SECTION 2. Grant of Security Interest. The Grantor hereby assigns, pledges,
hypothecates, charges, mortgages, delivers, and transfers to the Trustee, for the benefit of the
Secured Parties, and hereby grants to the Trustee, for the benefit of the Secured Parties, a
continuing security interest in all of the following property, whether now or hereafter existing or
acquired by the Grantor (the “Copyright Collateral”): all copyrights of the Grantor,
whether statutory or common law, registered or unregistered and whether published or unpublished,
now or hereafter in force throughout the world including all of the Grantor’s right, title and
interest in and to all copyrights registered in the United States Copyright Office or anywhere else
in the world and also including the copyrights referred to in Item A of Schedule I
hereto, and registrations and recordings thereof and all applications for registration thereof,
whether pending or in preparation, all copyright licenses, including each copyright license
referred to in Item B of Schedule I hereto, the right to sue for past, present and
future infringements of any of the foregoing, all rights corresponding thereto, all extensions and
renewals of any thereof and all Proceeds of the foregoing, including licenses, royalties, income,
payments, claims, damages and Proceeds of suit.

SECTION 3. Security Agreement. This Agreement has been executed and delivered by the
Grantor for the purpose of registering the security interest of the Trustee in the Copyright
Collateral with the United States Copyright Office and corresponding offices in other countries of
the world. The security interest granted hereby has been granted as a supplement to, and not in
limitation of, the security interest granted to the Trustee under the Security Agreement. The
Security Agreement (and all rights and remedies of the Trustee thereunder) shall remain in full
force and effect in accordance with its terms.

SECTION 4. Release of Liens. Upon (i) the Disposition of Copyright Collateral in
accordance with the Indentures or the Credit Agreement or (ii) the occurrence of the Termination
Date, the security interests granted herein shall automatically terminate with respect to (A) such
Copyright Collateral (in the case of clause (i)) or (B) all Copyright Collateral (in the
case of clause (ii)). Upon any such Disposition or termination, the Trustee will, at the
Grantor’s sole expense, deliver to the Grantor, without any representations, warranties or recourse
of any kind whatsoever, all Copyright Collateral held by the Trustee hereunder, and execute and
deliver to the Grantor such Documents as the Grantor shall reasonably request to evidence such
termination.

SECTION 5. Acknowledgment. The Grantor does hereby further acknowledge and affirm
that the rights and remedies of the Trustee with respect to the security interest in the Copyright
Collateral granted hereby are more fully set forth in the Security Agreement, the terms and
provisions of which (including the remedies provided for therein) are incorporated by reference
herein as if fully set forth herein.

SECTION 6. Intentionally Omitted.

SECTION 7. Counterparts. This Agreement may be executed by the parties hereto in
several counterparts, each of which shall be deemed to be an original and all of which shall
constitute together but one and the same agreement.

* * * * *

16

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

[NAME OF GRANTOR]

	 	 	 	By:
     

Name:

Title:

J.P. MORGAN TRUST COMPANY, NATIONAL ASSOCIATION,

as Trustee

	 	 	 	By:
     

Name:

Title:

17

SCHEDULE I

to Copyright Security Agreement

Item A. Copyrights/Mask Works

Registered Copyrights/Mask Works

Country Registration No. Registration Date Author(s) Title

Copyright/Mask Work Pending Registration Applications

Country Serial No. Filing Date Author(s) Title

Copyright/Mask Work Registration Applications in Preparation

Expected

Country Docket No. Filing Date Author(s) Title

	 	 	 	 	 	 	 	 	 
	Item B. Copyright/Mask Work Licenses
	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Country or

Territory

	 	Licensor
	 	Licensee
	 	Effective

    Date      
	 	Expiration

    Date        
	 

	 	 
	 	 
	 	 
	 	 

18

ANNEX I

to Security Agreement

SUPPLEMENT TO

PLEDGE AND SECURITY AGREEMENT

This SUPPLEMENT, dated as of      ,      (this “Supplement”), is to the
Pledge and Security Agreement, dated as of June [     ], 2006 (as amended, supplemented, amended and
restated or otherwise modified from time to time, the “Security Agreement”), among the
Grantors (such term, and other terms used in this Supplement, to have the meanings set forth in
Article I of the Security Agreement) from time to time party thereto, in favor of J.P. MORGAN TRUST
COMPANY, NATIONAL ASSOCIATION, as trustee (together with its successor(s) thereto in such capacity,
the “Trustee”) for the benefit of the Trustee and the Holders under the Indentures
(collectively, the “Secured Parties”).

W I T N E S S E T H

:

WHEREAS, this Agreement is made pursuant to Section 1008 of (i) that certain Indenture dated
as of May 1, 1993 between Ferro Corporation (the “Company”) and the Trustee
(successor-in-interest to Society National Bank), as the same may be amended, supplemented, amended
and restated or otherwise modified from time to time, and (b) that certain Indenture dated as of
March 25, 1998, between the Company and the Trustee (successor-in-interest to Chase Manhattan Trust
Company, National Association), as the same may be amended, supplemented, amended and restated or
otherwise modified from time to time (each an “Indenture” and, collectively, the
“Indentures”);

WHEREAS, pursuant to the provisions of Section 7.6 of the Security Agreement, each of the
undersigned is becoming a Grantor under the Security Agreement; and

WHEREAS, each of the undersigned desires to become a “Grantor” under the Security Agreement in
order to induce the Secured Parties to continue to extend Loans and issue Letters of Credit under
the Credit Agreement;

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is
hereby acknowledged, each of the undersigned agrees, for the benefit of each Secured Party, as
follows.

SECTION 1. Party to Security Agreement, etc. In accordance with the terms of the
Security Agreement, by its signature below each of the undersigned hereby irrevocably agrees to
become a Grantor under the Security Agreement with the same force and effect as if it were an
original signatory thereto and each of the undersigned hereby (a) agrees to be bound by and comply
with all of the terms and provisions of the Security Agreement applicable to it as a Grantor and
(b) represents and warrants that the representations and warranties made by it as a Grantor
thereunder are true and correct as of the date hereof, unless stated to relate solely to an earlier
date, in which case such representations and warranties shall be true and correct as of such
earlier date. In furtherance of the foregoing, each reference to a “Grantor” and/or “Grantors” in
the Security Agreement shall be deemed to include each of the undersigned.

SECTION 2. Representations. Each of the undersigned Grantor hereby represents and
warrants that this Supplement has been duly authorized, executed and delivered by it and that this
Supplement and the Security Agreement constitute the legal, valid and binding obligation of each of
the undersigned, enforceable against it in accordance with its terms.

SECTION 3. Full Force of Security Agreement. Except as expressly supplemented
hereby, the Security Agreement shall remain in full force and effect in accordance with its terms.

SECTION 4. Severability. Wherever possible each provision of this Supplement shall
be interpreted in such manner as to be effective and valid under applicable law, but if any
provision of this Supplement shall be prohibited by or invalid under such law, such provision shall
be ineffective to the extent of such prohibition or invalidity, without invalidating the remainder
of such provision or the remaining provisions of this Supplement or the Security Agreement.

SECTION 5. Governing Law, Entire Agreement, etc. THIS SUPPLEMENT SHALL BE DEEMED TO
BE A CONTRACT MADE UNDER AND GOVERNED BY THE INTERNAL LAWS OF THE STATE OF NEW YORK (INCLUDING FOR
SUCH PURPOSE SECTIONS 5-1401 AND 5-1402 OF THE GENERAL OBLIGATIONS LAW OF THE STATE OF NEW YORK).
This Supplement and the other Loan Documents constitute the entire understanding among the parties
hereto with respect to the subject matter thereof and supersede any prior agreements, written or
oral, with respect thereto.

SECTION 6. Counterparts. This Supplement may be executed by the parties hereto in
several counterparts, each of which shall be deemed to be an original and all of which shall
constitute together but one and the same agreement.

* * * * *

19

IN WITNESS WHEREOF, each of the parties hereto has caused this Agreement to be duly executed
and delivered by its Authorized Officer as of the date first above written.

[NAME OF ADDITIONAL SUBSIDIARY]

	 	 	 	By:
     

Name:

Title:

[NAME OF ADDITIONAL SUBSIDIARY]

	 	 	 	By:
     

Name:

Title:

ACCEPTED AND AGREED FOR ITSELF

AND ON BEHALF OF THE SECURED PARTIES:

J.P. MORGAN TRUST COMPANY, NATIONAL ASSOCIATION,

as Trustee

	 	 	By:      

Name:

Title:

20

[COPY SCHEDULES FROM SECURITY AGREEMENT]

21EX-10.4

COLLATERAL SHARING AGREEMENT

THIS COLLATERAL SHARING AGREEMENT, dated as of June 6, 2006, is among NATIONAL CITY
BANK (“National City”), in its capacity as the collateral agent under the Credit Agreement
referred to below (in such capacity, together with any successors or assigns, the “Collateral
Agent”), J.P. MORGAN TRUST COMPANY, NATIONAL ASSOCIATION, as Trustee under the Indentures
described below (in such capacity, together with any successors or assigns, the “Trustee”),
FERRO CORPORATION, an Ohio corporation (the “Company”), and each other Person listed on the
signature pages hereto as an “Obligor”.

W I T N E S S E T H:

WHEREAS, pursuant to that certain Credit Agreement, dated as of June 6, 2006 (as
amended, supplemented, amended and restated or otherwise modified from time to time, the
“Credit Agreement”), among the Company, the Designated Borrowers from time to time party
thereto (together with the Company, each individually, a “Borrower” and collectively, the
“Borrowers”), the various financial institutions and other Persons from time to time party
thereto (the “Credit Facility Lenders”), Credit Suisse, Cayman Islands Branch, as the Term
Loan Administrative Agent, National City, as the Revolving Loan Administrative Agent and the
Collateral Agent, and Keybank National Association, as the Documentation Agent, the Company,
together with certain additional Obligors, has executed and delivered the Credit Facility Pledge
Agreement in favor of the Collateral Agent whereby the Company and the other Obligors have granted
security interests in certain personal property (the “Personal Property Collateral”) to the
Collateral Agent;

WHEREAS, pursuant to the terms of the Credit Agreement, the Company, together with certain
additional Obligors, has executed and delivered one or more mortgages in favor of the Collateral
Agent whereby the Company and the other Obligors have granted liens upon certain real property (the
“Real Property Collateral”) to the Collateral Agent;

WHEREAS, the Company and the Trustee are parties to (i) that certain Indenture, dated as of
May 1, 1993, by and between the Company and the Trustee (as successor-in-interest to Society
National Bank) and (b) that certain Indenture, dated as of March 25, 1998, by and between the
Company and the Trustee (as successor-in-interest to Chase Manhattan Trust Company, National
Association) (each as amended, supplemented, amended and restated or otherwise modified from time
to time, an “Indenture” and, collectively, the “Indentures”);

WHEREAS, Section 1008 of each Indenture requires the Company, in connection with its
incurrence of certain Debt secured by a mortgage, pledge, lien, security interest, conditional
sale, title retention agreement or other similar encumbrance on any Principal Domestic
Manufacturing Property of the Company or any Domestic Subsidiary, or any shares of stock or Debt of
any Domestic Subsidiary, to grant equal and ratable liens upon and security interests in certain
Common Collateral to the Trustee to secure the Outstanding Securities;

WHEREAS, pursuant to Section 1008 of each Indenture, the Company, together with certain
additional Obligors, has executed and delivered the Indenture Pledge Agreement in favor of the
Trustee whereby the Company and the other Obligors have granted security interests in the Personal
Property Collateral to the Trustee;

WHEREAS, pursuant to Section 1008 of each Indenture, the Company, together with certain
additional Obligors, has executed and delivered one or more mortgages in favor of the Trustee
whereby the Company and the other Obligors have granted liens upon the Real Property Collateral to
the Trustee;

WHEREAS, the Personal Property Collateral and the Real Property Collateral are each Common
Collateral and thereby governed by the terms of this Agreement;

WHEREAS, it is contemplated by the parties hereto that the Company and certain additional
Obligors may grant Liens in additional Common Collateral from time to time, which additional Common
Collateral also will be governed by the terms of this Agreement;

WHEREAS, the parties hereto are entering into this Agreement to establish, inter alia, certain
rights, limitations and the relative priorities of the Trustee and the Collateral Agent with
respect to the Common Collateral.

NOW, THEREFORE, in consideration of the foregoing and for other good and valuable
consideration, the adequacy and receipt of which are hereby acknowledged, the parties hereto hereby
agree as follows:

ARTICLE I

DEFINITIONS

SECTION 1.1 Agreement to Recitals; Definitions. The parties hereto acknowledge and
agree to each of the Recitals set forth above, which Recitals are hereby incorporated in and made a
part of this Agreement. As used in this Agreement, the following terms shall have the following
meanings (such meanings to be equally applicable to both the singular and the plural form of the
terms indicated):

“Agreement” means this Collateral Sharing Agreement, as amended, supplemented, amended
and restated or otherwise modified from time to time in accordance with the terms hereof.

“Bankruptcy Code” means title 11 of the United States Code (11 U.S.C. §101 et seq.),
as in effect from time to time and any successor statute and shall also mean each other law or
structure of similar application in any jurisdiction in which an Obligor (or its assets) is
located.

“Borrower” or “Borrowers” is defined in the recitals.

“Capital Stock” means, (a) in the case of a corporation, any and all capital or
corporate stock, including shares of preferred or preference stock of such corporation, (b) in the
case of an association or business entity, any and all shares, interests, participations, rights or
other equivalents (however designated) in respect of corporate or capital stock, (c) in the case of
a partnership or limited liability company, any and all partnership or membership interests
(whether general or limited) and (d) any other interest or participation that confers on a person
the right to receive a share of the profits and losses of, or distributions of assets of, the
issuing Person.

“Cash Collateral” means any Common Collateral consisting of cash or cash equivalents,
any security entitlement (as defined in the UCC) and any financial assets (as defined in the UCC).

“Claims” means, collectively, the Credit Facility Secured Claims and the Indenture
Secured Claims.

“Collateral Agent” is defined in the preamble.

“Collateral Agent Standstill Notice” is defined in Section 2.4(b).

“Collateral Agent Standstill Period” is defined in Section 2.4(b).

“Collateral Documents” means, collectively, the Credit Facility Collateral Documents
and the Indenture Collateral Documents.

“Common Collateral” means the Personal Property Collateral, the Real Property
Collateral and any other asset of the Company or any other Obligor in which the Company or such
other Obligor has granted, or does subsequently grant, a Lien to each of the Trustee and the
Collateral Agent.

“Company” is defined in the preamble.

“Control Collateral” means any Common Collateral consisting of a certificated security
(as defined in the UCC), investment property (as defined in the UCC), a deposit account (as defined
in the UCC) and any other Common Collateral as to which a Lien is required to be perfected through
possession or control by the secured party.

“Credit Agreement” is defined in the recitals; provided that the term
Credit Agreement shall also include any renewal, extension, refunding, restructuring, replacement
or refinancing thereof (whether with the original collateral agent and lenders or another
collateral agent or agents or other lenders, whether provided under the original Credit Agreement
or any other credit or other agreement or indenture and whether entered into concurrently with or
subsequent to the termination of the prior Credit Agreement) (such document executed in connection
therewith a “Replacement Credit Agreement”).

“Credit Facility Collateral Documents” means the Credit Facility Pledge Agreement and
all other security agreements, mortgages, pledge agreements, collateral access agreements, control
agreements or other documents delivered by any Obligor to the Collateral Agent (or any other Credit
Facility Secured Party) to secure the Credit Facility Secured Claims.

“Credit Facility Documents” means the Credit Agreement, the Credit Facility Collateral
Documents and the other Credit Documents (as defined in the Credit Agreement).

“Credit Facility Event of Default” means an “Event of Default” as defined in the
Credit Agreement.

“Credit Facility Lenders” is defined in the recitals.

“Credit Facility Pledge Agreement” means the Pledge and Security Agreement, dated as
of June 6, 2006, made by certain Obligors in favor of the Collateral Agent, as amended,
supplemented, amended and restated or otherwise modified from time to time (and shall include any
other Pledge and Security Agreement executed pursuant to a Replacement Credit Agreement).

“Credit Facility Secured Claims” means (a) all Indebtedness outstanding under one or
more of the Credit Facility Documents and (b) all other Obligations (as defined in the Credit
Agreement). Credit Facility Secured Claims shall include all interest accrued or accruing (or
which would, absent the commencement of an Insolvency or Liquidation Proceeding in respect of any
obligor of such Credit Facility Secured Claims, accrue) after the commencement of an Insolvency or
Liquidation Proceeding in respect of any obligor of such Credit Facility Secured Claims in
accordance with and at the rate specified in the Credit Agreement whether or not the claim for such
interest is allowed as a claim in such Insolvency or Liquidation Proceeding. To the extent any
payment with respect to the Credit Facility Secured Claims (whether by or on behalf of any Obligor,
as proceeds of security, enforcement of any right of setoff or otherwise) is declared to be
fraudulent or preferential in any respect, set aside or required to be paid to a debtor in
possession, trustee, receiver or similar Person, then the Obligations (as defined in the Credit
Agreement) or part thereof originally intended to be satisfied shall be deemed to be reinstated and
outstanding as if such payment had not occurred.

“Credit Facility Secured Parties” means the “Secured Parties” under, and as defined
in, the Credit Agreement and shall include each other Person on behalf of whom the Collateral Agent
holds a Lien securing the Credit Facility Secured Claims.

“Debt” is defined in the Indentures.

“Discharge of Credit Facility Secured Claims” means payment in full in cash of the
Credit Facility Secured Claims (other than Credit Facility Secured Claims consisting of contingent
indemnification obligations under the Credit Facility Documents), delivery of cash collateral in an
amount not exceeding 100% of the undrawn aggregate amount of all such outstanding letters of credit
or backstop letters of credit in respect thereof in compliance with the terms of the Credit
Agreement, in each case, after or concurrently with termination of all commitments to extend credit
thereunder other than in connection with the execution and delivery of a Replacement Credit
Agreement.

“Discharge of Indenture Secured Claims” means payment in full in cash of the Indenture
Secured Claims (other than Indenture Secured Claims consisting of contingent indemnification
obligations under the Indenture Documents) in compliance with the terms of the applicable
Indenture.

“Domestic Subsidiary” is defined in the Indentures.

“Holder” is defined in the Indentures.

“Indebtedness” is defined in the Credit Agreement.

“Indenture” or “Indentures” is defined in the recitals.

“Indenture Collateral Documents” means the Indenture Pledge Agreement and all other
security agreements, mortgages, pledge agreements, collateral access agreements, control agreements
or other documents delivered by any Obligor to the Trustee to secure the Indenture Secured Claims.

“Indenture Documents” means, collectively, the Indentures and the Indenture Collateral
Documents.

“Indenture Event of Default” means an “Event of Default” as defined in the Indentures.

“Indenture Pledge Agreement” means the Pledge and Security Agreement, dated as of June
6, 2006, by certain Obligors, in favor of the Trustee, as amended, supplemented, amended and
restated or otherwise modified from time to time.

“Indenture Secured Claims” means, (i) the principal of (and premium, if any) and
interest (including default interest, if any) on any Outstanding Securities, and (ii) all other
obligations and liabilities owing by the Company under the Indentures (including, without
limitation, indemnities, fees and other amounts payable thereunder, including, without limitation,
the obligation of the Company to reimburse the Trustee for reasonable compensation, expenses,
disbursements and advances as described in Section 607 of each Indenture), whether primary,
secondary, direct, contingent, fixed or otherwise, in all cases whether now existing, or hereafter
incurred or arising. Indenture Secured Claims shall include all interest accrued or accruing (or
which would, absent the commencement of an Insolvency or Liquidation Proceeding in respect of any
obligor of such Indenture Secured Claims, accrue) after the commencement of an Insolvency or
Liquidation Proceeding in respect of any obligor of such Indenture Secured Claims in accordance
with and at the rate specified in the Indentures whether or not the claim for such interest is
allowed as a claim in such Insolvency or Liquidation Proceeding. To the extent any payment with
respect to the Indenture Secured Claims (whether by or on behalf of any Obligor, as proceeds of
security, enforcement of any right of setoff or otherwise) is declared to be fraudulent or
preferential in any respect, set aside or required to be paid to a debtor in possession, trustee,
receiver or similar Person, then the Indenture Secured Claims or part thereof originally intended
to be satisfied shall be deemed to be reinstated and outstanding as if such payment had not
occurred.

“Insolvency or Liquidation Proceeding” means, with respect to any Person, (a) any
voluntary or involuntary case or proceeding under the Bankruptcy Code with respect to such Person
as a debtor, (b) any other voluntary or involuntary insolvency, reorganization or bankruptcy case
or proceeding, or any receivership, liquidation, reorganization or other similar case or proceeding
with respect to such Person as a debtor or with respect to any substantial part of their respective
assets, (c) any liquidation, dissolution, reorganization or winding up of such Person whether
voluntary or involuntary and whether or not involving insolvency or bankruptcy or (d) any
assignment for the benefit of creditors or any other marshalling of assets and liabilities of such
Person.

“Liens” mean any mortgage, pledge, security interest, encumbrance, lien or charge of
any kind (including any agreement to give any of the foregoing, any conditional sale or other title
retention agreement or any lease in the nature thereof).

“National City” is defined in the preamble.

“Obligors” means, in respect of the Credit Facility Secured Claims, the Company and
each of its Subsidiaries party to a Credit Facility Document and, in respect of the Indenture
Secured Claims, the Company and each of its Subsidiaries party to an Indenture Document.

“Outstanding Securities” is defined in the Indentures.

“Person” means any individual, partnership, joint venture, firm, corporation, limited
liability company, association, trust or other enterprise or any government or political
subdivision or any agency, department or instrumentality thereof.

“Personal Property Collateral” is defined in the recitals.

“Pledged Stock Collateral” means, collectively, the Capital Stock pledged to the
Collateral Agent under the Credit Facility Pledge Agreement and the Capital Stock pledged to the
Trustee under the Indenture Pledge Agreement.

“Proceeds” means (a) all “proceeds” as defined in the UCC with respect to the Common
Collateral and (b) whatever is recoverable or recovered when Common Collateral is sold, exchanged,
collected or disposed of, whether voluntarily or involuntarily.

“Principal Domestic Manufacturing Property” is defined in the Indentures.

“Real Property Collateral” is defined in the recitals.

“Remedies Proceeds” is defined in Section 3.6.

“Secured Parties” means, collectively, the Credit Facility Secured Parties and the
Trustee.

“Subsidiary” of any person shall mean and include (a) any corporation more than 50% of
whose stock of any class or classes having by the terms thereof ordinary voting power to elect a
majority of the directors of such corporation (irrespective of whether or not at the time stock of
any class or classes of such corporation shall have or might have voting power by reason of the
happening of any contingency) is at the time owned by such person directly or indirectly through
Subsidiaries and (b) any partnership, association, joint venture or other entity in which such
person directly or indirectly through Subsidiaries, has more than a 50% equity interest at the
time.

“Trustee” is defined in the preamble.

“Trustee Standstill Notice” is defined in Section 2.4(a).

“Trustee Standstill Period” is defined in Section 2.4(a).

“UCC” means the Uniform Commercial Code, as at the time in effect in any applicable
jurisdiction.

ARTICLE II

LIEN PRIORITIES

SECTION 2.1 Acknowledgment. The Collateral Agent, for and on behalf of itself and the
other Credit Facility Secured Parties, acknowledges and agrees that the Company and certain
additional Obligors have granted (and may subsequently grant) to the Trustee, for the benefit of
the Trustee and the Holders under the Indentures, Liens upon the Common Collateral, and the
Collateral Agent hereby consents thereto.  The Trustee acknowledges and agrees that the Company and
certain additional Obligors have granted (and may subsequently grant) to the Collateral Agent, for
the benefit of the Collateral Agent and the other Credit Facility Secured Parties, Liens upon the
Common Collateral, and the Trustee hereby consents thereto. 

SECTION 2.2 Priority. Notwithstanding the date, manner or order of grant, attachment
or perfection of any Liens granted to the Collateral Agent or any other Credit Facility Secured
Party on the Common Collateral or of any Liens granted to the Trustee on the Common Collateral, and
notwithstanding any provision of the UCC, or any applicable law regarding the avoidance or setting
aside of any Lien granted to the Collateral Agent or any other Credit Facility Secured Party in the
Common Collateral or the Credit Facility Documents or the avoidance or setting aside of any Lien
granted to the Trustee in the Common Collateral or the Indenture Documents, or any other
circumstance whatsoever, (i) the Collateral Agent, on behalf of itself and the other Credit
Facility Secured Parties, agrees that any Lien on the Common Collateral securing the Credit
Facility Secured Claims now or hereafter held by the Collateral Agent and the Credit Facility
Secured Parties, regardless of how acquired, whether by grant, statute, operation of law,
subrogation or otherwise, shall be pari passu in priority to any Lien on the Common Collateral
securing the Indenture Secured Claims, and (ii) the Trustee agrees that any Lien on the Common
Collateral securing the Indenture Secured Claims now or hereafter held by the Trustee, regardless
of how acquired, whether by grant, statute, operation of law, subrogation or otherwise, shall be
pari passu in priority to any Lien on the Common Collateral securing the Credit Facility Secured
Claims.

SECTION 2.3 Prohibition on Contesting Liens.

(a) Prior to the Discharge of Credit Facility Secured Claims, the Trustee agrees that it shall
not (and hereby waives any right to) take any action to contest or challenge (or assist or support
any other Person in contesting or challenging), directly or indirectly, whether or not in any
proceeding (including in any Insolvency or Liquidation Proceeding), the validity, priority (as
established by Section 2.2 hereof), enforceability, or perfection of the Liens of the
Collateral Agent in respect of the Common Collateral, unless the Trustee shall receive a written
waiver by the Collateral Agent permitting the Trustee to take any such action.  The Trustee
agrees that it will not take any action that would hinder any exercise of remedies undertaken by
the Collateral Agent under the Credit Facility Documents in respect of the Common Collateral,
including any public or private sale, lease, exchange, transfer or other disposition of the Common
Collateral, whether by foreclosure or otherwise (other than as expressly permitted under this
Agreement); provided, the foregoing shall not prohibit the Trustee from asserting its Liens
in the Common Collateral as is necessary to preserve such Liens under applicable law (e.g.,
filing an answer setting forth its interest in the Common Collateral as part of any foreclosure
action). The Trustee hereby waives any and all rights it may have as a lien creditor or otherwise
to contest, protest, object to or interfere with the manner in which the Collateral Agent seeks to
enforce the Liens in any portion of the Common Collateral (other than as expressly permitted under
this Agreement), and the parties hereto agree that the terms of this Agreement shall govern with
respect to the Common Collateral, even if any portion of the Liens securing the Credit Facility
Secured Claims are avoided, disallowed, set aside, or otherwise invalidated in any judicial
proceeding or otherwise.

(b) Prior to the Discharge of Indenture Secured Claims, the Collateral Agent, on behalf of
itself and the other Credit Facility Secured Parties, agrees that it and they shall not (and hereby
waives, on behalf of itself and the other Credit Facility Secured Parties, any right to) take any
action to contest or challenge (or assist or support any other Person in contesting or
challenging), directly or indirectly, whether or not in any proceeding (including in any Insolvency
or Liquidation Proceeding), the validity, priority (as established by Section 2.2 hereof),
enforceability, or perfection of the Liens of the Trustee in respect of the Common Collateral,
unless the Collateral Agent shall receive a written waiver by the Trustee permitting the Collateral
Agent to take any such action.  The Collateral Agent, on behalf of itself and the other Credit
Facility Secured Parties, agrees that none of the Collateral Agent or any other Credit Facility
Secured Party will take any action that would hinder any exercise of remedies undertaken by the
Trustee under the Indenture Documents in respect of the Common Collateral, including any public or
private sale, lease, exchange, transfer or other disposition of the Common Collateral, whether by
foreclosure or otherwise (other than as expressly permitted under this Agreement);
provided, the foregoing shall not prohibit the Collateral Agent from asserting its Liens in
the Common Collateral as is necessary to preserve such Liens under applicable law (e.g.,
filing an answer setting forth its interest in the Common Collateral as part of any foreclosure
action).  The Collateral Agent, on behalf of itself and the other Credit Facility Secured Parties,
hereby waives any and all rights it or the other Credit Facility Secured Parties may have as a lien
creditor or otherwise to contest, protest, object to or interfere with the manner in which the
Trustee seeks to enforce the Liens in any portion of the Common Collateral (other than as expressly
permitted under this Agreement) and the parties hereto agree that the terms of this Agreement shall
govern with respect to the Common Collateral, even if any portion of the Liens securing the
Indenture Secured Claims are avoided, disallowed, set aside or otherwise invalidated in any
judicial proceeding or otherwise.

SECTION 2.4 Standstill Provisions.

(a) Trustee Standstill. If the Collateral Agent shall send a written notice stating
that such notice is a “Trustee Standstill Notice” (a “Trustee Standstill Notice”) to the
Trustee at any time after the occurrence and during the continuation of a Credit Facility Event of
Default, the Trustee agrees that from and after the date of its receipt of any such Trustee
Standstill Notice, the Trustee will not exercise any of its rights or remedies in respect of the
collection on, set off against, marshalling of, or foreclosure on, the Common Collateral under the
Indenture Documents, applicable law or otherwise as a secured creditor other than as expressly
permitted under this Agreement and will not take or receive any Common Collateral in connection
with the exercise of any such right or remedy (including recoupment or set-off), whether under the
Indenture Documents, applicable law, in an Insolvency or Liquidation Proceeding or otherwise unless
(a) the Collateral Agent has expressly waived or acknowledged the cure of the applicable Credit
Facility Event of Default in writing or the Discharge of Credit Facility Secured Claims shall have
occurred, or (b) 90 days shall have elapsed from the date of the receipt of such Trustee Standstill
Notice.  From and after the earliest to occur of (i) the Trustee’s receipt of such waiver or cure
notice, (ii) the date on which the Discharge of Credit Facility Secured Claims shall have occurred,
or (iii) the elapsing of such 90 day period, the Trustee may commence to exercise any of its rights
and remedies as a secured creditor with respect to the Common Collateral under the Indenture
Documents, applicable law or otherwise (subject to the provisions of this Agreement).  The time
period during which the Trustee is not permitted to exercise rights or remedies under this section
is referred to herein as the “Trustee Standstill Period”.

(b) Collateral Agent Standstill. If the Trustee shall send a written notice stating
that such notice is an “Collateral Agent Standstill Notice” (a “Collateral Agent Standstill
Notice”) to the Collateral Agent at any time after the occurrence and during the continuation
of an Indenture Event of Default, the Collateral Agent, on behalf of itself and the other Credit
Facility Secured Parties, agrees that from and after the date of its receipt of any such Collateral
Agent Standstill Notice, none of the Collateral Agent or any other Credit Facility Secured Party
will exercise any of its rights or remedies in respect of the collection on, set off against,
marshalling of, or foreclosure on, the Common Collateral under the Credit Facility Documents,
applicable law or otherwise as a secured creditor other than as expressly permitted under this
Agreement and will not take or receive any Common Collateral in connection with the exercise of any
such right or remedy (including recoupment or set-off), whether under the Credit Facility
Documents, applicable law, in an Insolvency or Liquidation Proceeding or otherwise unless (a) the
Trustee has expressly waived or acknowledged the cure of the applicable Indenture Event of Default
in writing or the Discharge of Indenture Secured Claims shall have occurred, or (b) 90 days shall
have elapsed from the date of the receipt of such Collateral Agent Standstill Notice.  From and
after the earliest to occur of (i) the Collateral Agent’s receipt of such waiver or cure notice,
(ii) the date on which the Discharge of Indenture Secured Claims shall have occurred, or (iii) the
elapsing of such 90 day period, any of the Collateral Agent or any other Credit Facility Secured
Party may commence to exercise any of its rights and remedies as a secured creditor with respect to
the Common Collateral under the Credit Facility Documents, applicable law or otherwise (subject to
the provisions of this Agreement).  The time period during which the Collateral Agent is not
permitted to exercise rights or remedies under this section is referred to herein as the
“Collateral Agent Standstill Period”.

(c) Subject to Section 3.1, notwithstanding anything to the contrary in Section
2.4(a) or (b), neither such Section shall be construed to prevent any action taken by
the Collateral Agent or the Trustee, as the case may be, to prepare for or commence marketing
activities for any applicable Common Collateral so long as such preparation does not interfere in
any material respect with the exercise of rights or remedies by the other party under such Section.

ARTICLE III

ENFORCEMENT; APPLICATION OF PROCEEDS

SECTION 3.1 Exercise of Rights and Remedies. So long as this Agreement has not been
terminated pursuant to the provisions hereof, and regardless of whether or not the Credit Facility
Secured Claims or the Indenture Secured Claims, respectively, has been accelerated or any
Insolvency or Liquidation Proceeding or similar event or proceeding has been commenced by or
against any Obligor:

(a) subject to the terms of the Credit Facility Documents and this Agreement, the Collateral
Agent shall have the right to exercise rights and remedies in respect of the Common Collateral
under the Credit Facility Documents, applicable law or otherwise. In exercising such rights and
remedies with respect to such Common Collateral, the Collateral Agent may enforce the provisions of
the Credit Facility Documents and exercise remedies thereunder and under applicable law (or refrain
from enforcing any such rights and exercising any such remedies), all in such order and in such
manner as it may determine in the exercise of its discretion or as otherwise provided in the Credit
Facility Documents. Subject to the provisions of Section 3.1(c) and Section 3.6
hereof, such exercise and enforcement shall include, without limitation, the rights of the
Collateral Agent to sell, lease, license or otherwise dispose of all or any portion of the Common
Collateral by private or public sale or any other means permissible under applicable law (such sale
to be free and clear of the Trustee’s Liens and the Trustee agrees to execute any and all Lien
releases requested by the Collateral Agent in connection therewith), to incur reasonable expenses
in connection with such exercise and enforcement, and to exercise all the rights and remedies of a
secured lender under the UCC and of a secured creditor under bankruptcy or similar laws of any
applicable jurisdiction;

(b) subject to the terms of the Indenture Documents and this Agreement, the Trustee shall have
the right to exercise rights and remedies in respect of the Common Collateral under the Indenture
Documents, applicable law or otherwise. In exercising such rights and remedies with respect to
such Common Collateral, the Trustee may enforce the provisions of the Indenture Documents and
exercise remedies thereunder and under applicable law (or refrain from enforcing any such rights
and exercising any such remedies), all in such order and in such manner as it may determine in the
exercise of its discretion or as otherwise provided in the Indentures. Subject to the provisions
of Section 3.1(c) and Section 3.6 hereof, such exercise and enforcement shall
include, without limitation, the rights of the Trustee to sell, lease, license or otherwise dispose
of all or any portion of the Common Collateral by private or public sale or any other means
permissible under applicable law (such sale to be free and clear of the Collateral Agent’s Liens
and the Collateral Agent agrees to execute any and all Lien releases requested by the Trustee in
connection therewith), to incur reasonable expenses in connection with such exercise and
enforcement, and to exercise all the rights and remedies of a secured lender under the UCC and of a
secured creditor under bankruptcy or similar laws of any applicable jurisdiction; and

(c) any money, property, securities or other direct or indirect distributions of any nature
whatsoever received by the Collateral Agent or any other Credit Facility Secured Party or the
Trustee resulting from the sale, disposition, or other realization upon or other exercise of
remedies in respect of all or any part of the Common Collateral, in each case regardless of whether
such money, property, securities or other distributions are received directly or indirectly during
the pendency of or in connection with any Insolvency or Liquidation Proceeding or otherwise, shall
be applied by the Collateral Agent, such Credit Facility Secured Party or the Trustee, as
applicable, in accordance with Section 3.6. Until so applied, such payment or distribution
shall be held in trust by such party as the property of the Secured Parties, segregated from other
funds and property held by such party.

SECTION 3.2 No Waiver of Rights.  The Trustee on the one hand, and the Collateral
Agent and the other Credit Facility Secured Parties on the other hand, may exercise, and nothing
herein shall constitute a waiver of, any right they may have at law or equity to receive notice of,
or to commence or join with any creditor in commencing any Insolvency or Liquidation Proceeding or
to join or participate in, any action or proceeding or other activity involving the sale or other
disposition of the Common Collateral; provided that exercise of any such right by the
Trustee on the one hand, and the Collateral Agent and the other Credit Facility Secured Parties on
the other hand, shall be subject to all of the terms and conditions of this Agreement.

SECTION 3.3 Rights as an Unsecured Creditor. Notwithstanding anything to the
contrary contained in this Agreement, the Trustee (i) may make such demands or file such claims in
respect of the Indenture Secured Claims as may be necessary to prevent the waiver or bar of such
claims under applicable statutes of limitations or other statutes, court orders or rules of
procedure, (ii) may in any Insolvency or Liquidation Proceeding file a proof of claim or statement
of interest with respect to the Indenture Secured Claims, (iii) may accelerate the Indenture
Secured Claims pursuant to the terms and conditions of the Indenture Documents and this Agreement,
and (iv) shall have all rights and remedies it may have as an unsecured creditor at law or in
equity against any Obligor; provided that (1) the Trustee shall not take any actions
restricted by this Agreement in respect of the Common Collateral until the Discharge of Credit
Facility Secured Claims shall have occurred, and (2) any exercise by the Trustee of its rights and
remedies and any Remedies Proceeds received as result of such actions shall to the extent provided
herein be subject to the Liens of the Collateral Agent and to the provisions of this Agreement.
Notwithstanding anything to the contrary in this Agreement or any control agreement or any bailee
agreement, so long as the Discharge of Credit Facility Secured Claims has not occurred, the Trustee
agrees that during any Trustee Standstill Period it will not issue any instructions to any bank or
securities intermediary regarding the disposition of funds in any deposit account (as defined in
the UCC) of an Obligor or the disposition of financial assets in any securities account (as defined
in the UCC) of an Obligor or the disposition of any Pledged Stock Collateral held by any bailee
without the prior written consent of the Collateral Agent. Each of the Collateral Agent and any
other Credit Facility Secured Party (i) may make such demands or file such claims in respect of the
Credit Facility Secured Claims as may be necessary to prevent the waiver or bar of such claims
under applicable statutes of limitations or other statutes, court orders or rules of procedure,
(ii) may in any Insolvency or Liquidation Proceeding file a proof of claim or statement of interest
with respect to the Credit Facility Secured Claims, (iii) may accelerate the Credit Facility
Secured Claims pursuant to the terms and conditions of the Credit Facility Documents and this
Agreement, and (iv) shall have all rights and remedies it may have as an unsecured creditor at law
or in equity against any Obligor; provided that (1) none of the Collateral Agent nor any
other Credit Facility Secured Party shall take any actions restricted by this Agreement in respect
of the Common Collateral until the Discharge of Indenture Secured Claims shall have occurred, and
(2) any exercise by the Collateral Agent or any other Credit Facility Secured Party of its rights
and remedies and any Remedies Proceeds received as result of such actions shall to the extent
provided herein be subject to the Liens of the Trustee and to the provisions of this Agreement. 
Notwithstanding anything to the contrary in this Agreement or any control agreement or any bailee
agreement, so long as the Discharge of Indenture Secured Claims has not occurred, the Collateral
Agent agrees on behalf of itself and the other Credit Facility Secured Parties that during any
Collateral Agent Standstill Period it will not issue any instructions to any bank or securities
intermediary regarding the disposition of funds in any deposit account (as defined in the UCC) of
an Obligor or the disposition of financial assets in any securities account (as defined in the UCC)
of an Obligor or the disposition of any Pledged Stock Collateral held by any bailee without the
prior written consent of the Trustee.

SECTION 3.4 Control and Cash Collateral.

(a) Each of the Collateral Agent, for and on behalf of itself and each other Credit Facility
Secured Party, and the Trustee, as applicable, agree to hold all Cash Collateral that it may
receive in its (or any bailee acting on its behalf) respective possession, custody or control as
agent for the other solely for the purpose of perfecting the Liens granted to each in such Cash
Collateral subject to the terms and conditions of this Section 3.4. The duties or
responsibilities of the Collateral Agent and the Trustee with respect to Cash Collateral under this
Section 3.4 are and shall be limited solely to holding or maintaining control of the Cash
Collateral for the other for purposes of perfecting the Lien held by the Collateral Agent or the
Trustee, as applicable.  The Collateral Agent is not and shall not be deemed to be a fiduciary of
any kind for the Trustee, the Holders of the Securities under the Indentures or any other Person. 
The Trustee is not and shall not be deemed to be a fiduciary of any kind for the Collateral Agent,
the other Credit Facility Parties or any other Person. Each of the Trustee and the Collateral
Agent agree to exercise reasonable care in the custody and preservation of any of the Collateral in
its possession; provided that each of the Trustee and the Collateral Agent shall be deemed
to have exercised reasonable care in the custody and preservation of any of the Collateral if it
takes such action for that purpose as the other reasonably requests in writing (subject to the
terms of this Agreement), but failure of the Trustee or the Collateral Agent to comply with any
such request at any time shall not in itself be deemed a failure to exercise reasonable care.

(b) The Collateral Agent and the Trustee further acknowledge and agree that, notwithstanding
anything to the contrary contained in the Indenture Pledge Agreement or the Credit Facility Pledge
Agreement to the contrary, the Collateral Agent (or a third party on its behalf) shall hold the
Control Collateral in its possession as agent and bailee of the Trustee for purposes of perfecting
the Trustee’s Liens in the Control Collateral. The Collateral Agent further acknowledges that, in
accordance with Section 9-313(c) of the UCC as in effect from time to time in New York, this
Agreement constitutes an authenticated record pursuant to which the Collateral Agent acknowledges
that it holds possession of the Control Collateral for the benefit of the Trustee. The Collateral
Agent agrees that it shall not relinquish possession of the Control Collateral except to the extent
that such Control Collateral is released in accordance with the terms of this Agreement or sold or
otherwise disposed of in connection with the Collateral Agent’s exercise of its remedies under the
Credit Facility Documents. Neither the Collateral Agent nor any other Credit Facility Secured Party
shall have any obligation whatsoever to the Trustee to assure that any Control Collateral is
genuine or owned by any Obligor or any other Person. 

SECTION 3.5 Notices of Exercise.  Concurrently with any exercise by the Trustee of
any of its rights and remedies under the Indenture Documents following the occurrence of any
Indenture Event of Default, the Trustee shall give written notice of such exercise to the
Collateral Agent and shall only exercise such rights or remedies under the Indenture Documents with
respect to the Common Collateral consistent with the terms of this Agreement.  Concurrently with
any exercise by the Collateral Agent of any of its rights and remedies under the Credit Facility
Documents following the occurrence of any Credit Facility Event of Default, the Collateral Agent
shall give written notice of such exercise to the Trustee and shall only exercise such rights or
remedies under the Credit Facility Documents with respect to the Common Collateral in a manner
consistent with the terms of this Agreement.

SECTION 3.6 Application of Proceeds. The Collateral Agent and the Trustee hereby
agree that all Common Collateral and all proceeds in respect thereof received by either of them in
connection with the sale of, collection on, recovery from or realization upon such Common
Collateral (such proceeds “Remedies Proceeds”) upon the exercise of any of their secured
creditor rights or remedies under any of the Credit Facility Documents, the Indenture Documents,
applicable law or otherwise, shall be promptly applied as follows:

(i) first, ratably to the payment in full in cash of costs and expenses of (i)
the Collateral Agent (including the fees and expenses of the Collateral Agent’s counsel) and
(ii) the Trustee (including the fees and expenses of the Trustee’s counsel) in connection
with such exercise,

(ii) second, after payment in full in cash of the amounts specified in
clause (i) above, to the Secured Parties for payment of their respective Claims
ratably in proportion to the aggregate amount of their respective Claims, which amounts will
be distributed to each such Secured Party until their respective Claims are paid in full in
cash, and

(iii) third, after payment in full in cash of the amounts specified in
clauses (i) through (ii), to each Obligor or any other Person lawfully
entitled to receive such surplus.

ARTICLE IV

MISCELLANEOUS

SECTION 4.1 Amendments to Collateral Documents. No Collateral Document may be
amended, supplemented or otherwise modified or entered into by any Secured Party to the extent such
amendment, supplement or modification, or the terms of any new such document, would be inconsistent
with any of the terms of this Agreement or would materially adversely affect the value of the
Common Collateral or the rights and remedies of the other Secured Parties.

SECTION 4.2 No Warranties or Liability. Each Secured Party acknowledges and agrees
that none of the Collateral Agent, the Trustee nor any other Secured Party have made express or
implied representation or warranty, including with respect to the execution, validity, legality,
completeness, collectibility or enforceability of any of the Collateral Documents. The Secured
Parties will be entitled to administer, manage and supervise their respective agreements with, and
loans and extensions of credit to, the Company and the other Borrowers, as the case may be, in
accordance with law and as they may otherwise, in their sole discretion, deem appropriate, and each
Secured Party may administer and manage their agreements, loans and extensions of credit without
regard to any rights or interests that each other Secured Party has in the Common Collateral or
otherwise, except as otherwise provided in this Agreement. Subject to the terms of this Agreement,
no Secured Party shall have any duty to any other Secured Party to act or refrain from acting in a
manner which allows, or results in, the occurrence or continuance of an Event of Default or default
under any agreements with the Company or the other Borrowers, as the case may be, regardless of any
knowledge thereof which such Secured Party may have or be charged with.

SECTION 4.3 Amendments; Waivers. No amendment, modification or waiver of any of the
provisions of this Agreement shall be deemed to be made unless the same shall be in writing signed
by each of the Collateral Agent, the Trustee and the Company and each waiver, if any, shall be a
waiver only with respect to the specific instance involved and shall in no way impair the rights of
the parties making such waiver or the obligations of the other parties to such party in any other
respect or at any other time.

SECTION 4.4 Forum Selection and Consent to Jurisdiction. ANY LITIGATION BASED
HEREON, OR ARISING OUT OF, UNDER, OR IN CONNECTION WITH, THIS AGREEMENT OR ANY OTHER COLLATERAL
DOCUMENT, OR ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENTS (WHETHER ORAL OR WRITTEN) OR
ACTIONS OF ANY PARTY HERETO RELATING THERETO SHALL BE BROUGHT AND MAINTAINED EXCLUSIVELY (TO THE
EXTENT PERMITTED UNDER APPLICABLE LAW) IN THE COURTS OF THE STATE OF NEW YORK, NEW YORK COUNTY, OR
IN THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK; PROVIDED THAT
ANY SUIT SEEKING ENFORCEMENT AGAINST ANY COMMON COLLATERAL OR OTHER PROPERTY MAY BE BROUGHT, AT THE
OPTION OF THE COLLATERAL AGENT THE TRUSTEE, OR SUCH OTHER SECURED PARTY, AS APPLICABLE, IN THE
COURTS OF ANY JURISDICTION WHERE SUCH COLLATERAL OR OTHER PROPERTY MAY BE FOUND. EACH OF THE
PARTIES HERETO HEREBY EXPRESSLY AND IRREVOCABLY SUBMITS TO THE JURISDICTION OF THE COURTS OF THE
STATE OF NEW YORK, NEW YORK COUNTY, AND OF THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN
DISTRICT OF NEW YORK FOR THE PURPOSE OF ANY SUCH LITIGATION AS SET FORTH ABOVE AND IRREVOCABLY
AGREES TO BE BOUND BY ANY JUDGMENT RENDERED THEREBY IN CONNECTION WITH SUCH LITIGATION. EACH OF
THE PARTIES HERETO IRREVOCABLY CONSENTS TO THE SERVICE OF PROCESS BY REGISTERED MAIL, POSTAGE
PREPAID, OR BY PERSONAL SERVICE WITHIN OR WITHOUT THE STATE OF NEW YORK. EACH OF THE PARTIES
HERETO HEREBY EXPRESSLY AND IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY
OBJECTION WHICH IT MAY HAVE OR HEREAFTER MAY HAVE TO THE LAYING OF VENUE OF ANY SUCH LITIGATION
BROUGHT IN ANY SUCH COURT REFERRED TO ABOVE AND ANY CLAIM THAT ANY SUCH LITIGATION HAS BEEN BROUGHT
IN AN INCONVENIENT FORUM.

SECTION 4.5 Waiver of Jury Trial. THE PARTIES HERETO HEREBY KNOWINGLY, VOLUNTARILY
AND INTENTIONALLY WAIVE ANY RIGHTS THEY MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION
BASED HEREON, OR ARISING OUT OF, UNDER OR IN CONNECTION WITH, THIS AGREEMENT OR ANY OTHER
COLLATERAL DOCUMENT, OR ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENTS (WHETHER ORAL OR
WRITTEN) OR ACTIONS OF SUCH PARTIES RELATING THERETO. EACH OF THE PARTIES HERETO ACKNOWLEDGES AND
AGREES THAT IT HAS RECEIVED FULL AND SUFFICIENT CONSIDERATION FOR THIS PROVISION (AND EACH OTHER
PROVISION OF EACH OTHER COLLATERAL DOCUMENT TO WHICH IT IS A PARTY) AND THAT THIS PROVISION IS A
MATERIAL INDUCEMENT FOR THE PARTIES ENTERING INTO THIS AGREEMENT AND EACH SUCH OTHER COLLATERAL
DOCUMENT.

SECTION 4.6 Notices. All notices permitted or required under this Agreement may be
sent to the Collateral Agent and the Trustee at its address set forth below. Unless otherwise
specifically provided herein, any notice or other communication herein required or permitted to be
given shall be in writing and may be personally served, telecopied, electronically mailed or sent
by courier service or U.S. mail and shall be deemed to have been given when delivered in person or
by courier service, upon receipt of a telecopy or electronic mail or four Business Days after
deposit in the U.S. mail (registered or certified, with postage prepaid and properly addressed).
For the purposes hereof, the addresses of the parties hereto shall be as set forth below or, as to
each party, at such other address as may be designated by such party in a written notice to all of
the other parties.

	 	 	 	 	 
	 
	 	National City Bank

	 
	 	629 Euclid Avenue
	 
	 	Cleveland, Ohio 44114

	If to the
	 	Facsimile: (216) 222-0103

	Collateral Agent:
	 	Attention:  Traci Sajewski

	With copies to:
	 	Mayer, Brown, Rowe & Maw LLP

	 
	 	214 N. Tryon Street, Suite 3800
	 
	 	Charlotte, North Carolina 28202

	 
	 	Facsimile:  (704) 377-2033

	 
	 	Attention:  Ron D. Franklin

	If to the Trustee:
	 	J.P. Morgan Trust Company, National Association

	 
	 	One Oxford Centre

	 
	 	301 Grant Street, Suite 1100
	 
	 	Pittsburgh, PA 15219

	 
	 	Facsimile:  (412) 291-2070

	 
	 	Attention: Ms. Bridget M. Schessler

	With copies to:
	 	Schottenstein, Zox & Dunn Co., L.P.A.

	 
	 	P.O. Box 165020

	 
	 	Columbus, Ohio 43216-5020

	 
	 	Facsimile:  614-462-5135

	 
	 	Attn: Victoria E. Powers, Esq. and Eric M. Stoller, Esq.

	If to the Company:
	 	Ferro Corporation

	 
	 	1000 Lakeside Avenue
	 
	 	Cleveland, Ohio 44114

	 
	 	Attn:  General Counsel

	 
	 	Fax:  216-875-7275

	With copies to:
	 	Baker & Hostetler LLP

	 
	 	1900 E. 9th St.
	 
	 	Suite 3200

	 
	 	Cleveland, Ohio 44114

	 
	 	Facsimile: 216-696-0740

	 
	 	Attn: M.H. (Bart) Sauer III, Esq.

SECTION 4.7 Further Assurances. Each of the Collateral Agent and the Trustee agrees
that it shall take such further action and shall execute and deliver to the other party such
additional documents and instruments (in recordable form, if requested) as such other party may
reasonably request to effectuate the terms of and the lien priorities contemplated by this
Agreement.

SECTION 4.8 Governing Law. THIS AGREEMENT SHALL BE DEEMED TO BE A CONTRACT MADE
UNDER AND GOVERNED BY THE INTERNAL LAWS OF THE STATE OF NEW YORK (INCLUDING FOR SUCH PURPOSES
SECTION 5-1401 AND 5-1402 OF THE GENERAL OBLIGATIONS LAW OF THE STATE OF NEW YORK).

SECTION 4.9  Continuing Agreement; Binding on Successors and Assigns; No Third Party
Beneficiaries. This Agreement is a continuing agreement and shall (a) remain in full force and
effect until the earlier of the date on which (i) Discharge of Credit Facility Secured Claims shall
have occurred and (ii) the Discharge of Indenture Secured Claims shall have occurred, (b) be
binding upon the Secured Parties and their successors and assigns, and (c) inure to the benefit of
and be enforceable by the Secured Parties and their respective successors, transferees and
assigns.  Without limiting the generality of the foregoing clause (c), each Secured Party
may assign or otherwise transfer all or any portion of its Claims to any other Person in the manner
contemplated in the Credit Facility Documents and the Indenture Documents, and such other Person
shall thereupon become vested with all the rights and obligations in respect thereof granted to the
applicable Secured Party, herein or otherwise. No other Person, shall have or be entitled to
assert rights or benefits hereunder.

SECTION 4.10 Section Titles; Time Periods. The section titles contained in this
Agreement are and shall be without substantive meaning or content of any kind whatsoever and are
not a part of this Agreement.

SECTION 4.11 Counterparts. This Agreement may be executed in one or more
counterparts, each of which shall be an original and all of which shall together constitute one and
the same document. Delivery of an executed counterpart of a signature page to this Agreement by
facsimile shall be effective as delivery of a manually executed counterpart of this Agreement.

SECTION 4.12 Authorization. By its signature, each Person executing this Agreement
on behalf of a party hereto represents and warrants to the other parties hereto that it is duly
authorized to execute this Agreement.

SECTION 4.13 Effectiveness. This Agreement shall become effective when executed and
delivered by the parties listed below. This Agreement shall be effective both before and after the
commencement of any Insolvency or Liquidation Proceeding.

SECTION 4.14 Trustee Acting for Benefit of Holders; Collateral Agent Acting for Benefit
of Credit Facility Secured Parties.

(a) Each of the Obligors and the Collateral Agent, on its own behalf and on behalf of the
Credit Facility Secured Parties, acknowledge and agree that the Trustee is executing this Agreement
not in its individual capacity, but solely in its capacity as Trustee under the Indentures. Each
of the parties agree that in so acting, the Trustee shall have all of the protections afforded to
it under the Indentures and related documents, including, without limitation, its rights to
indemnification thereunder. The foregoing shall not be deemed or construed to grant any additional
consent or approval rights or to modify any existing consent or approval rights (if any) of any
Holder of the Outstanding Securities under the Indentures.

(b) Each of the Obligors and the Trustee, on its own behalf and on behalf of the Holders under
the Indentures, acknowledge and agree that the Collateral Agent is executing this Agreement not in
its individual capacity, but solely in its capacity as Collateral Agent under the Credit Agreement.
Each of the parties agree that in so acting, the Collateral Agent shall have all of the
protections afforded to it under the Credit Agreement and related documents, including, without
limitation, its rights to indemnification thereunder. The foregoing shall not be deemed or
construed to grant any additional consent or approval rights or to modify any existing consent or
approval rights (if any) of any Credit Facility Lender under the Credit Agreement.

SECTION 1.1

1

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of
the date first written above.

Collateral Agent:

NATIONAL CITY BANK,

By:      

Name:

Title:

Trustee:

J.P. MORGAN TRUST COMPANY, NATIONAL ASSOCIATION

By:      

Name:

Title:

Acknowledged and Agreed:

Obligors:

FERRO CORPORATION

	 	 	 	By:

Name: Thomas M. Gannon

Title: Chief Financial Officer

FERRO ELECTRONIC MATERIALS INC.

	 	 	 	By:
     

Name: Rhonda S. Ferguson

Title: Assistant Secretary

FERRO PFANSTIEHL LABORATORIES, INC.

	 	 	 	By:
     

Name: Rhonda S. Ferguson

Title: Assistant Secretary

FERRO COLOR & GLASS CORPORATION

	 	 	 	By:
     

Name: Rhonda S. Ferguson

Title: Secretary

FERRO INTERNATIONAL SERVICES INC.

	 	 	 	By:
     

Name: Rhonda S. Ferguson

Title: Secretary

FERRO CHINA HOLDINGS INC.

	 	 	 	By:
     

Name: Rhonda S. Ferguson

Title: Secretary

2

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