Document:

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Exhibit 10.4

Execution Copy

“Notwithstanding anything herein to the contrary, the liens and security interests granted to the
Agent pursuant to this Agreement and the exercise of any right or remedy by the Agent hereunder,
are subject to the limitations and provisions of the Intercreditor Agreement dated as of December,
2006 (as amended, restated, supplemented or otherwise modified from time to time, the
“Intercreditor Agreement”), among Bank of America, N.A., The Bank of New York Trust Company, N.A.,
Neenah Foundry Company and the Subsidiaries of Neenah Foundry Company party thereto. In the event
of any conflict between the terms of the Intercreditor Agreement and the terms of this Agreement,
the terms of the Intercreditor Agreement shall govern”.

PLEDGE AGREEMENT

          THIS PLEDGE AGREEMENT (this “Agreement”) is made and entered into as of December 29, 2006 by
each of the undersigned pledgors (collectively, the “Pledgors” and each, a “Peldgor”), in favor of
in favor of The Bank of New York Trust Company, N.A. for the benefit of the Secured Parties (as
defined below). Unless otherwise defined herein, capitalized terms used herein and defined in the
Indenture (as defined below) shall be used herein as therein defined or, if not defined in the
Indenture, as defined in the UCC (as defined below).

WITNESSETH:

     WHEREAS, Neenah Foundry Company (the “Company”) and The Bank of New York Trust Company, N.A.,
as trustee and collateral agent (in such capacity, the “Agent”), have entered into an Indenture,
dated as of December 29, 2006 (as amended, restated, supplemented or otherwise modified from time
to time, the “Indenture”), providing for the issuance of the 91/2% Senior Secured Notes due 2017
(“Notes”) of the Company, all as contemplated therein (with the holders from time to time of Notes
being referred to herein as the “Noteholders” and, together with the Agent, as the “Secured
Parties”);

     WHEREAS, pursuant to the Note Guaranty, each Guarantor has jointly and severally guaranteed to
the Secured Parties the payment when due of all the Obligations;

     WHEREAS, the Company owns 100% of the issued and outstanding capital stock of Deeter Foundry,
Inc., a Nebraska corporation (“Deeter”), Mercer Forge Corporation, a Delaware corporation
(“Mercer”), Dalton Corporation, an Indiana corporation (“Dalton”), Cast Alloys, Inc., a California
corporation (“Cast Alloys”), Neenah Transport, Inc., a Wisconsin corporation (“Neenah Transport”),
Gregg Industries, Inc., a California corporation (“Gregg”) and Advanced Cast Products, Inc., a
Delaware corporation (“Advanced Cast”), all as further described on Schedule I hereto;

     WHEREAS, Advanced Cast owns 100% of the issued and outstanding capital stock of Belcher
Corporation, a Delaware Corporation (“Belcher”) and Peerless Corporation, an Ohio corporation
(“Peerless”);

 

 

     WHEREAS, Dalton owns 100% of the issued and outstanding capital stock of Dalton Corporation,
Stryker Machining Facility Co., an Ohio corporation (“Stryker”), Dalton Corporation, Warsaw
Manufacturing Facility (“Warsaw”), an Indiana corporation, Dalton Corporation, Kendallville
Manufacturing Facility (“Kendallville”), an Indiana corporation, and Dalton Corporation, Ashland
Manufacturing Facility (“Ashland”), an Ohio corporation, all as further described on Schedule
I hereto;

     WHEREAS, Mercer owns 100% of the issued and outstanding capital stock of A & M Specialties,
Inc., a Pennsylvania corporation (“A&M” and, together with Deeter, Mercer, Dalton, Cast Alloys,
Neenah Transport, Gregg, Advanced Cast, Belcher, Peerless, Stryker, Warsaw, Kendallville and
Ashland, collectively, the “Issuers” and each, an “Issuer”), as further described on Schedule
I hereto;

     WHEREAS, concurrently herewith each Pledgor is entering into a Security Agreement, dated as of
the date hereof (the “Security Agreement”), granting to the Agent, for the benefit of the Secured
Parties, a first priority security interest in the Collateral (as defined in the Security
Agreement), other than Permitted Liens;

     WHEREAS, it is a condition precedent to the issuance of Notes by the Issuer that each Pledgor
shall have executed and delivered to the Agent this Agreement;

     WHEREAS, each Pledgor will obtain benefits from the issuance of Notes by the Company under the
Indenture and, accordingly, desires to execute this Agreement in order to satisfy the condition
described in the preceding recital;

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

          1. Pledge. Each Pledgor hereby pledges to Agent, for the benefit of the Secured
Parties, and grants to Agent, for the benefit of the Secured Parties, a security interest in:

	(a)	 	the shares of stock of each Issuer identified on Schedule I hereto held by
such Pledgor (the “Pledged Shares”) and the certificates representing the Pledged
Shares, and all stock dividends, cash dividends, cash, instruments, chattel paper and
other rights, property or proceeds and products from time to time received, receivable
or otherwise distributed in respect of or in exchange for any or all of the Pledged
Shares;

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

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

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

          3. Delivery of Pledged Collateral. Subject to Section 16 hereof, all certificates or
instruments representing or evidencing the Pledged Collateral shall be delivered to and held by or
on behalf of the Agent pursuant hereto and shall be in suitable form for transfer by delivery, or
shall be accompanied by duly executed undated instruments of transfer or assignment in blank, all
in form and substance reasonably satisfactory to the Agent. The Agent shall have the right, at any
time upon direction of the Secured Parties and without notice to any Pledgor following the
occurrence and during the continuance of an Event of Default, to transfer to or to register in the
name of the Agent or any of its nominees any or all of the Pledged Collateral. In addition, during
such time the Agent shall have the right to exchange certificates or instruments representing or
evidencing Pledged Collateral for certificates or instruments of smaller or larger denominations.

          4. Representations and Warranties. In order to induce the Agent and the other Secured
Parties to enter into this Agreement, each Pledgor represents and warrants that the following
statements are true, correct and complete:

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

	(b)	 	Assuming that the Agent has taken and is retaining possession of the Pledged Shares
in the State of Illinois, the delivery of the Pledged Shares to the Agent pursuant to
this Agreement is effective to create a valid and perfected first priority security
interest in the Pledged Collateral, free of any adverse claim other than Permitted
Liens, securing the payment of the Secured Obligations.

	(c)	 	No consent of any other party (including, without limitation, any creditor of such
Pledgor) and no consent, authorization, approval or other action by, and no notice to
or filing with, any governmental authority or regulatory body is required either

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	 	 	(i) for the pledge by such Pledgor of the Pledged Collateral pursuant to this
Agreement or for the execution, delivery or performance of this Agreement by such
Pledgor or (ii) for the exercise by the Agent of the voting or other rights provided
for in this Agreement or the remedies in respect of the Pledged Collateral pursuant
to this Agreement (except as has already been obtained or taken and except as may be
required in connection with such disposition by laws affecting the offering and sale
of securities generally).
	 
	(d)	 	None of the Pledged Shares held by such Pledgor constitutes margin stock, as defined
in Regulation U of the Board of Governors of the Federal Reserve System.
	 
	(e)	 	This Agreement is the legal, valid and binding obligation of such Pledgor,
enforceable against such Pledgor in accordance with its terms, except as limited by
applicable bankruptcy, reorganization, insolvency or similar laws affecting the
enforcement of creditors’ rights generally.
	 
	(f)	 	All information herein or hereafter supplied to the Agent by or on behalf of the
Pledgor with respect to the Pledged Collateral is and will be accurate and complete in
all material respects.

          5. Further Assurances.

	(a)	 	Each Pledgor will, from time to time, at such Pledgor’s expense, and upon the Agent’s
request, promptly execute and deliver all further instruments and documents and take
all further action that is necessary, or that the Agent may reasonably request, in
order to perfect and protect any security interest granted or purported to be granted
hereby, to enable the Agent to exercise and enforce the rights and remedies of the
Agent hereunder with respect to any Pledged Collateral or to carry out the provisions
and purposes hereof. Without limiting the generality of the foregoing, each Pledgor
will: (i) upon the Agent’s request, execute and file such financing or continuation
statements, or amendments thereto, and such other instruments or notices, as is
necessary, or as the Agent may reasonably request, in order to perfect and preserve
the security interests granted or purported to be granted hereby under the laws of any
applicable jurisdiction or (ii) upon the Agent’s reasonable request, appear in and
defend any action or proceeding that may affect such Pledgor’s title to or the Agent’s
security interest in the Pledged Collateral.
	 
	(b)	 	Each Pledgor will, promptly (and in any event within three Business Days) upon the
purchase or acquisition of any additional shares of stock of any Issuer, deliver to or
on behalf of the Agent such Pledged Shares as required by Section 3 above, together
with a proxy substantially in the form attached hereto as Exhibit A, and a
pledge amendment, duly executed by such Pledgor, in substantially the form of
Exhibit B hereto (a “Pledge Amendment”), in respect of the additional shares
which are to be pledged pursuant to this Agreement. Each Pledgor hereby authorizes
the Agent to attach each Pledge Amendment to this Agreement and

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	 	 	agrees that all shares listed on any Pledge Amendment delivered to the Agent shall
for all purposes hereunder be considered Pledged Collateral.

          6. Voting Rights; Dividends; Etc.

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

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

          (ii) Except as otherwise expressly permitted in the Indenture, (A) any cash
dividends and other cash distributions paid or payable with respect to any of the
Pledged Collateral shall be paid to the Agent and applied to reduce the Secured
Obligations in the manner set forth in the Indenture, and (B) any and all
instruments, chattel paper and other rights, property or proceeds and products
(other than cash or checks) received, receivable or otherwise distributed in respect
of, or in exchange for, any Pledged Collateral, shall be, and shall be forthwith,
delivered to the Agent to hold as Pledged Collateral, and shall, if received by such
Pledgor, be received in trust for the benefit of the Agent, be segregated from the
other property or funds of Pledgor, and be forthwith delivered to the Agent as
Pledged Collateral in the same form as so received (with any necessary endorsement).

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

	(b)	 	Upon the occurrence and during the continuance of an Event of Default:

          (i) Except as otherwise expressly permitted in the Indenture, all rights of
each Pledgor to receive and retain any cash dividends and distributions pursuant to
subsection 6(a)(ii), and to exercise the voting and other consensual rights which
such Pledgor would otherwise be entitled to exercise pursuant to subsection 6(a)(i),
shall cease to be effective upon written notice by the Agent to such Pledgor of the
Agent’s intent to exercise its rights hereunder, and upon delivery of such notice
shall become vested in the Agent who shall thereupon have the sole right to exercise
such voting and other consensual rights and the sole right to receive and hold as
Pledged Collateral such dividends (and, to the extent permissible, apply them to
payment of the Secured Obligations). In order to effect such transfer of rights,
the Agent shall have the right, upon such

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notice, to date and present to the applicable Issuer an irrevocable proxy
executed by such Pledgor substantially in the form attached hereto as Exhibit
A (a “Proxy”).

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

          7. Transfers and Other Liens; Additional Shares.

	(a)	 	Each Pledgor agrees that such Pledgor will not, except for Permitted Liens, (i)
encumber, sell, assign (by operation of law or otherwise) or otherwise dispose of, or
grant any option with respect to, any of the Pledged Collateral or (ii) enter into any
other contractual obligations which could reasonably be expected to restrict or
inhibit the right or ability of the Agent to sell or otherwise dispose of the Pledged
Collateral or any part thereof after the occurrence and during the continuance of an
Event of Default.

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

          8. Agent Appointed Attorney-in-Fact. Each Pledgor hereby irrevocably appoints the
Agent as such Pledgor’s attorney-in-fact effective upon the occurrence and during the continuance
of an Event of Default, with full authority in the place and stead of such Pledgor and in the name
of such Pledgor, the Agent or otherwise, from time to time in the discretion of the Agent to take
any action (including completion and presentation of any proxy) and to execute any instrument that
is necessary or advisable to accomplish the purposes of this Agreement, including, without
limitation, to (i) receive, endorse and collect all instruments made payable to such Pledgor
representing any dividend or other distribution in respect of the Pledged Collateral or any part
thereof; (ii) exercise the voting and other consensual rights pertaining to the Pledged Collateral;
and (iii) sell, transfer, pledge, make any agreement with respect to or otherwise deal with any of
the Pledged Collateral as fully and completely as though the Agent was the absolute owner thereof
for all purposes, and to do, at Pledgor’s expense, at any time or from time to time, all acts and
things necessary or that the Agent deems necessary to protect, preserve or realize upon the Pledged
Collateral. Each Pledgor hereby ratifies and approves all acts of the Agent made or taken in
accordance with the terms of this Section 8. Except as specifically set forth in Section 10 hereof
or in the event of the gross negligence or willful misconduct of the Agent, neither the Agent nor
any person designated by Agent shall be liable for any acts or omissions or

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for any error of judgment or mistake of fact or law. This power of attorney, being coupled
with an interest, shall be irrevocable until all Secured Obligations (other than unasserted
contingent indemnity obligations) shall have been paid in full and the Noteholder Documents (as
such term is defined in the Security Agreement) shall have been terminated.

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

          10. Limitation on Duty of Agent with Respect to the Pledged Collateral.

	(a)	 	The powers conferred on the Agent hereunder are solely to protect its interest in the
Pledged Collateral and shall not impose any duty on it to exercise any such powers.
Beyond the exercise of reasonable care in the custody thereof, the Agent shall have no
duty as to any Pledged Collateral in its possession or control or in the possession or
control of any agent or bailee or any income thereon or as to preservation of rights
against prior parties or any other rights pertaining thereto and the Agent shall not
be responsible for filing any financing or continuation statements or recording any
documents or instruments in any public office at any time or times or otherwise
perfecting or maintaining the perfection of any security interest in the Pledged
Collateral. The Agent shall be deemed to have exercised reasonable care in the
custody of the Pledged Collateral in its possession if the Pledged Collateral is
accorded treatment substantially equal to that which it accords its own property and
shall not be liable or responsible for any loss or diminution in the value of any of
the Pledged Collateral, by reason of the act or omission of any carrier, forwarding
agency or other agent or bailee selected by the Agent in good faith.

	(b)	 	The Agent shall not be responsible for the existence, genuineness or value of any of
the Pledged Collateral or for the validity, perfection, priority or enforceability of
the Liens in any of the Pledged Collateral, whether impaired by operation of law or by
reason of any of any action or omission to act on its part hereunder, except to the
extent such action or omission constitutes gross negligence, bad faith or willful
misconduct on the part of the Agent, for the validity or sufficiency of the Pledged
Collateral or any agreement or assignment contained therein, for the validity of the
title of the Pledgors to the Pledged Collateral, for insuring the Pledged Collateral
or for the payment of taxes, charges, assessments or Liens upon the Pledged Collateral
or otherwise as to the maintenance of the Pledged Collateral.

	(c)	 	Notwithstanding anything in this Agreement to the contrary and for the avoidance of
doubt, the Agent shall have no duty to act outside of the United States in respect of
any Pledged Collateral located in the jurisdiction other than the United States.

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	(d)	 	The Pledgors agree to record and file, at their own expense, financing statements
(and continuation statements when applicable) with respect to the Pledged Collateral
now existing or hereafter created meeting the requirements of applicable state law in
such manner and in such jurisdictions as are necessary to perfect and maintain
perfected the security interests in the Collateral created hereunder and under the
other Noteholder Documents, and to deliver a file stamped copy of each such financing
statement or other evidence of filing to the Agent promptly thereafter. The Agent
shall be under no obligation whatsoever to file such financing statements or
continuation statements or to make any other filing under the UCC.

          11. Remedies upon Event of Default. If any Event of Default shall have occurred and
be continuing:

	(a)	 	The Agent may exercise in respect of the Pledged Collateral, in addition to other
rights and remedies provided for herein or otherwise available to it, all of the
rights and remedies of a secured party under the Uniform Commercial Code (the “UCC”)
in the State of New York, whether or not the UCC applies to the affected Pledged
Collateral, and the Agent may also, without notice except as specified below, sell the
Pledged Collateral or any part thereof in one or more parcels at public or private
sale, at any exchange, broker’s board or at any office of the Agent or elsewhere, for
cash, on credit, or for future delivery, at such price or prices and upon such other
terms as the Agent deems commercially reasonable. Each Pledgor acknowledges and
agrees that such a private sale may result in prices and other terms which may be less
favorable to the seller than if such sale were a public sale. Each Pledgor agrees
that, to the extent notice of sale shall be required by law, at least ten (10) days’
notice to such Pledgor of the time and place of any public sale or the time after
which any private sale is to be made shall constitute reasonable notification. At any
sale of the Pledged Collateral, if permitted by law, the Agent, on behalf of the
Secured Parties, may bid (which bid may be, in whole or in part, in the form of
cancellation of indebtedness) for the purchase of the Pledged Collateral or any
portion thereof. The Agent shall not be obligated to make any sale of Pledged
Collateral regardless of notice of sale having been given. The Agent may adjourn any
public or private sale from time to time by announcement at the time and place fixed
therefor, and such sale may, without further notice, be made at the time and place to
which it was so adjourned. The Agent shall be under no obligation to delay a sale of
any of the Pledged Collateral for the period of time necessary to permit the issuing
corporation of such securities to register such securities for public sale under the
Securities Act of 1933, as from time to time amended (the “Securities Act”), or under
applicable state securities laws, even if the issuing corporation would agree to do
so. To the extent permitted by law, each Pledgor hereby specifically waives all
rights of redemption, stay or appraisal which such Pledgor has or may have under any
law now existing or hereafter enacted.
	 
	(b)	 	Except as expressly permitted in the Indenture and in this Agreement, all cash
proceeds received by the Agent in accordance with the terms hereof in respect of

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	 	 	any sale of, collection from, or other realization upon all or any part of the
Pledged Collateral may, in the discretion of the Agent, be held by the Agent as
collateral for, and/or then or at any time thereafter applied (after payment of any
amounts payable to the Agent pursuant to the terms of the Indenture) in whole or in
part by the Agent against all or any part of the Secured Obligations in accordance
with the provisions of Section 13. Any surplus of such cash or cash proceeds held
by the Agent and remaining after payment in full of all the Secured Obligations
shall be paid over to the relevant Pledgor or to whomsoever may be lawfully entitled
to receive such surplus or as a court of competent jurisdiction may direct;
provided, that in the event that all of the conditions to the termination of
this Agreement pursuant to Section 14 shall not have been fulfilled, such balance
shall be held and applied from time to time as provided in this subsection 11(b)
until all such conditions shall have been fulfilled.
	 
	(c)	 	Each Pledgor recognizes that the Agent may be unable to effect a public sale of all
or part of the Pledged Collateral and may be compelled to resort to one or more
private sales to a restricted group of purchasers who will be obligated to agree,
among other things, to acquire such Pledged Collateral for their own account, for
investment and not with a view to the distribution or resale thereof. Each Pledgor
acknowledges that any such private sales may be at prices and on terms less favorable
to the seller than if sold at public sales and agrees that such private sales shall be
deemed to have been made in a commercially reasonable manner, and that the Agent has
no obligation to delay sale of any such Pledged Collateral for the period of time
necessary to permit the issuer of such Pledged Collateral to register such Pledged
Collateral for public sale under the Securities Act.

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

          13. Application of Proceeds. Upon the occurrence and during the continuance of an
Event of Default, the proceeds of any sale of, or other realization upon, all or any part of the
Pledged Collateral shall be applied in the manner set forth in the Indenture.

          14. Termination of Security Interests; Release of Collateral. Upon payment and
performance in full of all Secured Obligations (other than unasserted contingent indemnity
obligations) and termination of the Indenture in accordance with its terms, the security interests
granted herein shall terminate and all rights to the Pledged Collateral shall revert to the
Pledgors. Upon such termination of the security interests or release of the Pledged Collateral,
the Agent will, at the expense of the Pledgors, and subject to Section 20 herein, promptly execute
and deliver to each Pledgor such documents as such Pledgor shall reasonably request to evidence the

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termination of the security interests or the release of such Pledged Collateral which has not
yet theretofore been sold or otherwise applied or released. Such release shall be without recourse
or warranty to the Agent, except as to the absence of any prior assignments by the Agent of its
interest in the Pledged Collateral.

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

          16. Perfection by Possession or Control. With respect to any provision in this
Agreement which requires any Pledgor to deliver possession of any negotiable document, instrument,
certificated securities, promissory notes or other Pledged Collateral requiring possession thereof
in order to perfect the security interest of the Agent therein under the UCC, or which requires the
Agent to have “control” (as defined in the UCC) of such Pledged Collateral, in order to perfect the
security interest of the Agent therein, until the Discharge of the Bank Obligations (as defined in
the Intercreditor Agreement) has occurred, no such delivery to the Agent shall be required to the
extent such Pledged Collateral is delivered to the Bank Agent (as defined in the Intercreditor
Agreement) in accordance with the Bank Documents (as defined in the Intercreditor Agreement), it
being understood that the Bank Agent is acting as non-fiduciary agent for the benefit of the Agent
solely for the purpose of perfecting the security interest in such Pledged Collateral pursuant to
the terms of the Intercreditor Agreement.

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

          18. Continuing Security Interest; Successors and Assigns. This Agreement shall create
a continuing security interest in the Pledged Collateral and shall (i) remain in full force and
effect until payment and performance in full of all Secured Obligations (other than unasserted
contingent indemnity obligations) and termination of the Indenture, (ii) be binding upon each
Pledgor, its successors and assigns, and (iii) inure, together with the rights and remedies of the
the Agent hereunder, to the benefit of the Agent and its successors and assigns. No Pledgor may
assign or transfer any of its interests or obligations hereunder without the prior consent of the
Agent.

          19. Waiver.

	(a)	 	In addition to any other waivers herein, each Pledgor waives to the greatest extent
it may lawfully do so, and agrees that it shall not at any time insist upon, plead or
in any manner whatever claim or take the benefit or advantage of, any appraisal,
valuation, stay, extension, marshalling of assets, redemption or similar law, or
exemption, whether now or at any time hereafter in force, which may delay, prevent or
otherwise affect the performance by such Pledgor of its obligations under, or the
enforcement by the Agent of, this Agreement. Each Pledgor hereby

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	 	 	waives diligence, presentment and demand (whether for nonpayment or protest or of
acceptance, maturity, extension of time, change in nature or form of the Secured
Obligations, acceptance of further security, release of further security,
composition or agreement arrived at as to the amount of, or the terms of the Secured
Obligations, notice of adverse change in any Issuer’s or any other Person’s
financial condition or any other fact which might materially increase the risk to
such Pledgor) with respect to any of the Secured Obligations or all other demands
whatsoever and, to the fullest extent permitted by law, waives the benefit of all
provisions of law which are or might be in conflict with the terms of this
Agreement.
	 
	(b)	 	If the Agent may, under applicable law, proceed to realize its benefits under any of
the Noteholder Documents giving the Agent a Lien upon any Collateral, whether owned by
any Issuer or by any other Person, either by judicial foreclosure or by non-judicial
sale or enforcement, the Agent may, at its sole option, determine which of its
remedies or rights it may pursue without affecting any of the rights and remedies of
the Agent under this Agreement.

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

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

          22. Severability. The provisions of this Agreement are severable, and if any clause
or provision shall be held invalid or unenforceable in whole or in part in any jurisdiction, then
such invalidity or unenforceability shall affect only such clause or provision, or part thereof, in
such jurisdiction and shall not in any manner affect such clause or provision in any other
jurisdiction, or any other clause or provision of this Agreement in any jurisdiction.

          23. Interpretation. Time is of the essence of each provision of this Agreement of
which time is an element. To the extent any term or provision of this Agreement conflicts with the
provisions of the Indenture and is not dealt with more specifically herein, the Indenture shall
control with respect to such term or provision.

-11-

 

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

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

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

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

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

          29. WAIVER OF JURY TRIAL; JURISDICTION. EACH PLEDGOR HEREBY CONSENTS TO THE
JURISDICTION OF THE COURTS OF THE STATE OF NEW YORK, SITTING IN THE BOROUGH OF MANHATTAN, CITY OF
NEW YORK, OR, AT THE AGENT’S OPTION, THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF
NEW YORK, AND WAIVES ANY OBJECTION WHICH IT MAY HAVE BASED ON IMPROPER VENUE OR FORUM
NON CONVENIENS TO THE CONDUCT OF ANY PROCEEDING IN ANY SUCH COURT AND CONSENTS THAT
ALL SERVICE OF PROCESS UPON SUCH PLEDGOR BE MADE BY REGISTERED MAIL OR MESSENGER DIRECTED TO SUCH
PLEDGOR AT THE ADDRESS SET FORTH FOR SUCH PLEDGOR IN THE SECURITY AGREEMENT AND THAT SERVICE SO
MADE SHALL BE DEEMED TO BE COMPLETED UPON ACTUAL RECEIPT THEREOF. EACH PLEDGOR AND THE AGENT
HEREBY WAIVE, TO THE EXTENT PERMITTED BY LAW, TRIAL BY JURY. NOTHING CONTAINED HEREIN SHALL AFFECT
THE RIGHT OF THE AGENT TO SERVE LEGAL PROCESS IN ANY OTHER MANNER PERMITTED BY LAW OR AFFECT THE
RIGHT OF THE AGENT TO BRING ANY ACTION OR PROCEEDING AGAINST ANY PLEDGOR OR ITS PROPERTY IN THE
COURTS OF ANY OTHER JURISDICTION.

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

-12-

 

          31. Force Majeure. In no event shall the Agent be responsible or liable for any
failure or delay in the performance of its obligations hereunder arising out of or caused
by, directly or indirectly, forces beyond its control, including, without limitation, strikes, work
stoppages, accidents, acts of war or terrorism, civil or military disturbances, nuclear or natural
catastrophes or acts of God, and interruptions, loss or malfunctions of utilities, communications
or computer (software and hardware) services; it being understood that the Agent shall use
reasonable efforts which are consistent with accepted practices in the banking industry to resume
performance as soon as practicable under the circumstances.

-13-

 

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

	 	 	 	 	 
	 	 	NEENAH FOUNDRY COMPANY
	 	 	ADVANCED CAST PRODUCTS, INC.
	 	 	DALTON CORPORATION
	 	 	MERCER FORGE CORPORATION,
	 	 	each, as a Pledgor
	 
	 	 	 	 
	 	 	Acting on behalf of each of the Pledgors
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Gary W. LaChey
	 

	 	 	 	 
	 	 	Title: Corporate Vice President — Finance
	 	 	          and Chief Financial Officer

 

 

          By acceptance hereof as of this 29th day of December, 2006, the Agent agrees to be bound by
the provisions hereof.

	 	 	 	 	 
	 	 	THE BANK OF NEW YORK TRUST COMPANY,
	 	 	N.A., as Agent
	 
	 	 	 	 
	 

	 	By
	 	/s/ Roxane Ellwanger
	 

	 	 	 	 
	 	 	Title Assistant Vice Presidentexv10w5

 

Exhibit 10.5

Execution Copy

COPYRIGHT, PATENT, TRADEMARK AND LICENSE MORTGAGE

     THIS COPYRIGHT, PATENT, TRADEMARK AND LICENSE MORTGAGE (this “Mortgage”) made as of this 29th
day of December, 2006, by NEENAH FOUNDRY COMPANY, a Wisconsin corporation, (“Mortgagor”) in favor
of THE BANK OF NEW YORK TRUST COMPANY, N.A. (“Mortgagee”), for the benefit of the Secured Parties
(as defined below). Unless otherwise defined herein, capitalized terms used and not defined herein
shall have the meanings given to such terms in the Security Agreement referred to below.

W I T N E S S E T H:

     WHEREAS, Mortgagor and Mortgagee are parties to an Indenture, dated as of December 29, 2006
(as amended, restated, supplemented or otherwise modified from time to time, the “Indenture”),
providing for the issuance of the 91/2% Senior Secured Notes due 2017 (“Notes”) of the Mortgagor, all
as contemplated therein (with the holders from time to time of Notes being referred to herein as
the “Noteholders” and, together with Mortgagee, as the “Secured Parties”);

     WHEREAS, Mortgagor, certain affiliates of Mortgagor, various financial institutions from time
to time party thereto and Bank of America, N.A., as administrative agent and collateral agent, are
party to and amended and restated loan and security agreement, dated as of December 29, 2006 (as so
amended and restated and as the same may be further amended, restated, supplemented or otherwise
modified from time to time, the “ABL Agreement”);

     WHEREAS, Mortgagor, Mortgagee and the subsidiaries of Mortgagor named therein are parties to
(i) a Security Agreement, dated as of December 29, 2006 (as amended, restated, supplemented or
otherwise modified from time to time, the “Security Agreement”) and (ii) other Noteholder Documents
(collectively with the Indenture, the Notes and the Security Agreement, and as each is from time to
time amended or otherwise modified, the “Financing Documents”);

     WHEREAS, pursuant to the terms of the Security Agreement, Mortgagor has granted to Mortgagee,
for the benefit of the Secured Parties, a security interest in substantially all of Mortgagor’s
assets, including, without limitation, the copyrights, copyright agreements, copyright
applications, patents, patent applications, trademarks, trademark applications, trade names,
service marks, service mark applications, goodwill and certain licenses of Mortgagor;

     NOW, THEREFORE, in consideration of the premises set forth herein and for other good and
valuable consideration, the receipt, sufficiency and adequacy of which are hereby acknowledged,
Mortgagor agrees as follows:

 

 

     1. Incorporation of Financing Documents. The Financing Documents and the terms and
provisions thereof are hereby incorporated herein in their entirety by this reference.

     2. Mortgage of Copyrights, Patents, Trademarks and Licenses. To secure the complete
and timely payment and satisfaction of all of the Obligations (as defined in the Security
Agreement), Mortgagor hereby grants to Mortgagee for the benefit of the Secured Parties, a
continuing security interest in all of its now existing and hereafter created or acquired:

     (i) copyrights, rights and interests in copyrights, works protectable by
copyrights, copyright registrations and copyright applications, including,
without limitation, the copyright registrations and applications listed on
Exhibit A attached hereto and hereby made a part hereof, and all renewals,
extensions and continuations of any of the foregoing, all income, royalties,
damages and payments now and hereafter due and/or payable under or with respect
to any of the foregoing, including, without limitation, damages and payments for
past, present or future infringements of any of the foregoing and the right to
sue for past, present and future infringements of any of the foregoing (all of
the foregoing are sometimes hereinafter individually and/or collectively
referred to as the “Copyrights”);

     (ii) patents and patent applications, including, without limitation, the
inventions and improvements described and claimed therein, all patentable
inventions and those patents and patent applications listed on Exhibit B
attached hereto and made a part hereof, and all reissues, divisions,
continuations, renewals, extensions and continuations-in-part of any of the
foregoing, and all income, royalties, damages and payments now and hereafter due
and/or payable under or with respect to any of the foregoing, including, without
limitation, damages and payments for past, present or future infringements of
any of the foregoing and the right to sue for past, present and future
infringements of any of the foregoing (all of the foregoing are sometimes
hereinafter individually and/or collectively referred to as the “Patents”);

     (iii) trademarks, trademark registrations, trademark applications, trade
names, corporate names, company names, business names, fictitious business
names, trade styles, service marks, other business identifiers, prints and
labels on which any of the foregoing have appeared or appear, all registrations
and recordings thereof, and all applications in connection therewith (other than
“intent to use” applications until a verified statement of use is filed with
respect to such applications), including, without

2

 

limitation, the trademarks, trade names, service marks, registrations and
applications listed on Exhibit C attached hereto and hereby made a part hereof,
and all renewals, extensions and continuations of any of the foregoing, and all
income, royalties, damages and payments now and hereafter due and/or payable
under or with respect to any of the foregoing, including, without limitation,
damages and payments for past, present or future infringements of any of the
foregoing and the right to sue for past, present and future infringements of any
of the foregoing (all of the foregoing are sometimes hereinafter individually
and/or collectively referred to as the “Trademarks”, provided, however the term
“Trademarks” shall not include any trademarks, trade names, business names or
service marks incorporating the word “Peerless.”);

     (iv) all license agreements between Mortgagor and any other party with
respect to any of the Copyrights or any of the Patents or any of the Trademarks
or any other copyright, patent, trademark, service mark or any registration or
application for registration or any other trade name or tradestyle, whether
Mortgagor is a licensor or licensee under any such license agreement, including,
without limitation, the licenses listed on Exhibit D attached hereto and hereby
made a part hereof, other than license agreements which, according to their
terms, may not be assigned without the prior consent of the other Person party
thereto (unless such consent has been obtained) (all of the foregoing license
agreements and Mortgagor’s rights thereunder are referred to collectively as the
“Licenses”); and

     (v) all rights corresponding to any of the foregoing throughout the world
and the goodwill of Mortgagor’s business connected with and symbolized by the
Trademarks.

          Upon the occurrence and during the continuance of an Event of Default, Mortgagee, on behalf of
the Secured Parties, shall have the power, to the extent permitted by law, to exercise the rights
and remedies of a secured party provided under the Financing Documents, including without
limitation the right to sell the Copyrights, Patents, Trademarks and Licenses.

     3. Warranties, Representations and Covenants. For purposes of this Agreement, (a) the
Copyrights listed on Exhibit A hereto, any other registered Copyrights and any other Copyrights
material to Mortgagor’s business are collectively referred to as the “Material Copyrights”, (b) the
Patents listed on Exhibit B hereto, any other registered Patents and any other Patents material to
Mortgagor’s business are collectively referred to as the “Material Patents”, (c) the Trademarks
listed on Exhibit C hereto, any other registered Trademarks and any other

3

 

Trademarks material to Mortgagor’s business are collectively referred to as the “Material
Trademarks”) and (d) any Licenses added to Exhibit D hereto pursuant to Section 5, below, and any
other Licenses material to Mortgagor’s business are collectively referred to as the “Material
Licenses”. Mortgagor warrants and represents to Mortgagee that:

     (i) No Material Copyright, Material Patent or Material Trademark has been
adjudged invalid or unenforceable or, has been cancelled, in whole or in part;

     (ii) Each Material Copyright, Material Patent and Material Trademark is
valid and enforceable;

     (iii) Mortgagor is the sole and exclusive owner of the entire unencumbered
right, title and interest in and to each Material Copyright, Material Patent and
Material Trademark free and clear of any liens, charges and encumbrances,
including, without limitation, licenses, shoprights and covenants by Mortgagor
not to sue third parties;

     (iv) Mortgagor has no notice of any suits or actions commenced or
threatened in writing with respect to any of the Material Copyrights, Material
Patents or Material Trademarks;

     (v) Mortgagor has the unqualified right to execute and deliver this
Mortgage and perform its terms;

     (vi) Mortgagor has no Material Licenses;

     (vii) Mortgagor has no notice of any infringement or unauthorized use
presently being made of any of the Material Copyrights, Material Patents or
Material Trademarks which would reasonably be expected to materially adversely
affect the fair market value of the Material Copyrights, Material Patents or
Material Trademarks or the benefits to Mortgagee of this Mortgage, including,
without limitation, the priority or perfection of the security interest granted
herein or the remedies of Mortgagee hereunder; and

     (viii) Mortgagor has no notice of any suits or actions commenced or
threatened in writing with respect to any Material Copyright, Material Patent or
Material Trademark.

     4. Restrictions on Future Agreements. Mortgagor agrees that until the Obligations
(other than unasserted indemnity obligations) shall have been satisfied in full and the Financing
Documents shall have been terminated (the “Financing

4

 

Documents Termination”), Mortgagor shall not, without the prior written consent of Mortgagee,
sell or assign its interest in, or grant any license under, any Material Copyright, Material
Patent, Material Trademark or Material License, or enter into any other agreement with respect to
any Material Copyright, Material Patent, Material Trademark or Material License which is
inconsistent with the obligations under this Mortgage, except to the extent permitted under the
terms of the Indenture. Mortgagor further agrees that it shall not take any action, or permit any
action to be taken by others subject to its control, including licensees, or fail to take any
action, which would adversely affect the validity or enforcement of the rights transferred to
Mortgagee under this Mortgage.

     5. New Copyrights, Patents, Trademarks, and Licenses. Mortgagor represents and
warrants that the Copyrights, Patents, Trademarks and Licenses listed on Exhibits A, B, and C,
respectively, constitute all of the United States registered Copyrights, Patents and registered
Trademarks now owned by Mortgagor and not abandoned. If, before the Financing Documents
Termination, Mortgagor shall (i) become aware of any existing Copyrights, Patents, Trademarks or
Licenses of which Mortgagor has not previously informed mortgagee; (ii) obtain rights to any new
Copyrights, patentable inventions, Patents, Trademarks or Licenses, or (iii) become entitled to the
benefit of any Copyrights, Patents, Trademarks or Licenses or any improvement on any Patent, the
provisions of Section 2 above shall automatically apply thereto. Mortgagor hereby authorizes
Mortgagee to modify this Mortgage by amending Exhibits A, B, C and D, as applicable, to include any
such registered Copyrights, Patents, registered Trademarks and Material Licenses.

     6. Royalties; Term. The term of the security interests/mortgages granted herein shall
extend until the earlier of (i) the expiration of each of the respective Copyrights, Patents,
Trademarks and Licenses encumbered hereunder, and (ii) the Financing Documents Termination. Upon
the occurrence of an Event of Default, Mortgagor agrees that the use by Mortgagee of all
Copyrights, Patents, Trademarks and Licenses shall be worldwide and without any liability for
royalties or other related charges from Mortgagee to Mortgagor.

     7. Release of Mortgage. This Mortgage is made for collateral purposes only. Upon
Financing Documents Termination, Mortgagee shall take such actions as may be necessary or proper to
terminate and release its security interest in the Copyrights, Patents, Trademarks, and Licenses
created hereby and pursuant to the Financing Documents, subject to any disposition thereof which
may have been made by Mortgagee pursuant hereto or pursuant thereto.

     8. Expenses. All reasonable expenses incurred in connection with the performance of
any of the agreements set forth herein shall be borne by Mortgagor. All reasonable fees, costs and
expenses, of whatever kind or nature, including reasonable attorneys’ fees and legal expenses,
incurred by Mortgagee in connection with the filing or recording of any documents (including all
taxes in connection therewith) in public offices, the payment or discharge of any taxes,
maintenance

5

 

fees, encumbrances or otherwise in protecting, maintaining or preserving the Copyrights,
Patents, Trademarks and Licenses, or in defending or prosecuting any actions or proceedings arising
out of or related to the Copyrights, Patents, Trademarks and Licenses, shall be borne by and paid
by Mortgagor on written demand by Mortgagee and until so paid shall be added to the principal
amount of the Obligations and shall bear interest at the then applicable rate as set forth in the
Indenture.

     9. Duties of Mortgagor. Mortgagor shall have the duty, in each case as commercially
reasonable (i) to file and prosecute diligently any copyright, patent, trademark or service mark
applications material to Mortgagor’s business and pending as of the date hereof or thereafter until
the Financing Documents Termination, (ii) to make application on uncopyrighted but copyrightable
works, on unpatented but patentable inventions and on trademarks and service marks, as appropriate,
material to Mortgagor’s business, (iii) to preserve and maintain all rights in the Material
Copyrights, Material Patents, Material Trademarks and Material Licenses and (iv) to ensure that the
Material Copyrights, Material Patents, Material Trademarks and Material Licenses are and remain
enforceable (subject to any statutory expirations). Any expenses incurred in connection with
Mortgagor’s obligations under this Section 9 shall be borne by Mortgagor. Mortgagor shall not
abandon any right to file an application with respect to a copyright, patent, trademark or service
mark that is material to Mortgagor’s business, or abandon any material Copyright, material Patent,
material Trademark or material License, without the written consent of Mortgagee. If Mortgagor
fails to comply with any of the foregoing duties, Mortgagee may perform said duties in Mortgagor’s
name, to the extent permitted by law. Mortgagor agrees (i) to maintain the quality of any and all
products in connection with which the Material Trademarks are used, consistent with the quality of
said products as of the date hereof, except to the extent that the failure to perform any of the
following would not reasonably be expected to have a Material Adverse Effect (as defined in the ABL
Agreement as in effect on the date hereof), and (ii) to provide Mortgagee, upon Mortgagee’s request
from time to time, with a certificate of an officer of Mortgagor certifying Mortgagor’s compliance
with the foregoing. Upon the occurrence and during the continuation of an Event of Default,
Mortgagor agrees that Mortgagee, or a conservator appointed by Mortgagee, shall have the right to
establish such additional product quality controls as Mortgagee, or said conservator, in its sole
judgment exercised in a commercially reasonable manner, may deem necessary to assure maintenance of
the quality of products sold by Mortgagor under the Trademarks. Mortgagor shall promptly, upon
demand, reimburse and indemnify Mortgagee for all reasonable costs and expenses of Mortgagee,
including reasonable attorney’s fees and expenses so incurred by Mortgagee, in the exercise of its
rights under this Section 9.

     10. Mortgagee’s Right to Sue. After the occurrence of an Event of Default, Mortgagee
shall have the right, but shall in no way be obligated, to bring suit in its own name to enforce
the Copyrights, Patents, Trademarks and Licenses,

6

 

and, if Mortgagee shall commence any such suit, Mortgagor shall, at the request of Mortgagee,
do any and all lawful acts and execute any and all proper documents required by Mortgagee in aid of
such enforcement and Mortgagor shall promptly, upon demand, reimburse and indemnify Mortgagee for
all reasonable costs and expenses incurred by Mortgagee, including reasonable attorneys’ fees and
expenses so incurred by Mortgagee, in the exercise of its rights pursuant to this paragraph other
than costs and expenses incurred by Mortgagee as a result of its gross negligence or willful
misconduct.

     11. Waivers. No course of dealing among Mortgagor, Mortgagee and the other Secured
Parties, nor any failure to exercise, nor any delay in exercising, on the part of Mortgagee or any
other Secured Party, any right, power or privilege hereunder or under the Financing Documents shall
operate as a waiver thereof; nor shall any single or partial exercise of any right, power or
privilege hereunder or thereunder preclude any other or further exercise thereof or the exercise of
any other right, power or privilege.

     12. Severability. The provisions of this Mortgage are severable, and if any clause or
provision shall be held invalid and unenforceable in whole or in part in any jurisdiction, then
such invalidity or unenforceability shall affect only such clause or provision, or part thereof, in
such jurisdiction, and shall not in any manner affect such clause or provision in any other
jurisdiction, or any other clause or provision of this Mortgage in any jurisdiction.

     13. Modification. This Mortgage cannot be altered, amended or modified in any way,
except as specifically provided herein or by a writing signed by the parties hereto.

     14. Cumulative Remedies; Power of Attorney; Effect on Financing Documents. All of
Mortgagee’s rights and remedies with respect to the Copyrights, Patents, Trademarks and Licenses,
whether established hereby or by the Financing Documents, or by any other agreements or by law
shall be cumulative and may be exercised singularly or concurrently. Upon the occurrence and
during the continuation of an Event of Default, Mortgagor hereby authorizes Mortgagee to make,
constitute and appoint any officer or agent of Mortgagee as Mortgagee may select, in its sole
discretion, as Mortgagor’s true and lawful attorney-in-fact, with power to (i) endorse Mortgagor’s
name on all applications, documents, papers and instruments necessary or desirable for Mortgagee in
the use of any or all of the Copyrights, Patents, Trademarks and Licenses, or (ii) take any other
actions with respect to any or all of the Copyrights, Patents, Trademarks and Licenses as Mortgagee
deems to be in its best interest, or (iii) grant or issue any exclusive or non-exclusive license
under any or all of the Copyrights, Patents, Trademarks or Licenses to any Person, or (iv) assign,
pledge, convey or otherwise transfer title in or dispose of any or all of the Copyrights, Patents,
Trademarks or Licenses to any Person, or (v) take any other actions with respect to any or all of
the Copyrights, Patents, Trademarks and Licenses as Mortgagee deems to be in its best interests.

7

 

Mortgagor hereby ratifies all that such attorney-in-fact shall lawfully do or cause to be done
by virtue hereof. This power of attorney, being coupled with an interest, shall be irrevocable
until the Financing Documents Termination. Mortgagor acknowledges and agrees that this Mortgage is
not intended to limit or restrict in any way the rights and remedies of Mortgagee or any other
Secured Party or their respective successors transferees and assigns under the Financing Documents
but rather is intended to facilitate the exercise of such rights and remedies. Mortgagee and such
other Secured Parties shall have, in addition to all other rights and remedies given it or them by
the terms of this Mortgage and the Financing Documents, all rights and remedies allowed by law and
the rights and remedies of a secured party under the Uniform Commercial Code (or such other
applicable law) as enacted in any jurisdiction in which the Copyrights, Patents, Trademarks or
Licenses may be located.

     15. Binding Effect; Benefits. This Mortgage shall be binding upon Mortgagor and its
respective successors and permitted assigns, and shall inure to the benefit of Mortgagee and the
other Secured Parties, their successors, nominees and assigns.

     16. GOVERNING LAW. THIS MORTGAGE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE
WITH THE INTERNAL LAWS OF THE STATE OF NEW YORK.

     17. CONSENT TO FORUM AND WAIVERS. TO INDUCE MORTGAGEE AND THE OTHER SECURED PARTIES
TO ENTER INTO THE INDENTURE AND TO PURCHASE THE NOTES, MORTGAGOR IRREVOCABLY AGREES THAT, SUBJECT
TO MORTGAGEE’S SOLE AND ABSOLUTE ELECTION, ALL SUITS, ACTIONS OR OTHER PROCEEDINGS IN ANY WAY,
MANNER OR RESPECT ARISING OUT OF OR FROM OR RELATED TO THIS MORTGAGE OR ANY DOCUMENTS EXECUTED IN
CONNECTION HEREWITH, SHALL BE SUBJECT TO LITIGATION IN THE COURTS OF THE STATE OF NEW YORK, SITTING
IN THE BOROUGH OF MANHATTAN, CITY OF NEW YORK, OR, AT THE MORTGAGEE’S OPTION, THE UNITED STATES
DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK. MORTGAGOR HEREBY CONSENTS AND SUBMITS TO THE
JURISDICTION OF ANY SUCH COURT. MORTGAGOR HEREBY WAIVES ANY RIGHT IT MAY HAVE TO TRANSFER OR
CHANGE THE VENUE OF ANY SUIT, ACTION OR OTHER PROCEEDING BROUGHT AGAINST MORTGAGOR BY MORTGAGEE IN
ACCORDANCE WITH THIS SECTION. MORTGAGOR AND MORTGAGEE HEREBY WAIVE, TO THE EXTENT PERMITTED BY
LAW, TRIAL BY JURY. MORTGAGOR FURTHER WAIVES ANY BOND OR SURETY OR SECURITY UPON SUCH BOND WHICH
MIGHT, BUT FOR THIS WAIVER, BE REQUIRED OF MORTGAGEE.

8

 

     18. Headings. Paragraph headings used herein are for convenience only and shall not
modify the provisions which they precede.

     19. Further Assurances. Mortgagor agrees to execute and deliver such further
agreements, instruments and documents, and to perform such further acts, as Mortgagee shall request
from time to time in order to carry out the purpose of this Mortgage and agreements set forth
herein.

     20. Survival of Representations. All representations and warranties of Mortgagor
contained in this Mortgage shall survive the execution and delivery of this Mortgage and shall be
remade on the date of each issuance of Notes pursuant to the Indenture.

9

 

          IN WITNESS WHEREOF, Mortgagor has duly executed this Mortgage in favor of Mortgagee as of the
date first written above.

	 	 	 	 	 
	 	NEENAH FOUNDRY COMPANY

 	 
	 	By 	/s/ Gary W. LaChey
 	 
	 	Its Corporate Vice President - Finance 	 
	 	           and Chief Financial Officer 	 

 

 

	 	 	 	 	 

AGREED AND ACCEPTED THIS

29th day of December, 2006.

THE BANK OF NEW YORK TRUST

COMPANY, N.A.,

	 	 	 	 	 
	By

	 	/s/ Roxane Ellwanger
 

	 	 
	Its Assistant Vice President

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