Document:

exv10w13

 

EXHIBIT 10.13

 

AMENDED AND RESTATED

COLLATERAL AGENCY AND INTERCREDITOR AGREEMENT

Dated as of the 5th day of September, 2006

By and Among

Bank of America, N.A., individually and

as Collateral Agent,

Bank of America, N.A., as U.S. Agent

for U.S. Lenders

The Prudential Insurance Company of America,

Prudential Retirement Insurance and Annuity Company,

The Northern Trust Company,

A. M. Castle & Co.

and

Various Guarantors

 

 

 

	 	 	 	 	 
	1. DEFINITIONS
	 	 	2	 
	 
	 	 	 	 
	1.1 Definitions
	 	 	2	 
	1.2 Terms Generally
	 	 	13	 
	 
	 	 	 	 
	2. RECOURSE OF SECURED PARTIES; OTHER COLLATERAL; ACTION BY SECURED PARTIES
	 	 	13	 
	 
	 	 	 	 
	2.1 Recourse of Secured Parties; Other Collateral
	 	 	13	 
	2.2 Action by Secured Parties
	 	 	14	 
	 
	 	 	 	 
	3. DUTIES OF COLLATERAL AGENT
	 	 	15	 
	 
	 	 	 	 
	3.1 Notices to the Secured Parties
	 	 	15	 
	3.2 Actions Under Security Documents
	 	 	16	 
	3.3 Status of Moneys Received
	 	 	16	 
	 
	 	 	 	 
	4. CERTAIN INTERCREDITOR ARRANGEMENTS
	 	 	17	 
	 
	 	 	 	 
	4.1 General Rule: Pari Passu Rights Against Collateral
	 	 	17	 
	4.2 Non-Cash Distributions or Proceeds
	 	 	18	 
	4.3 Additional Collateral
	 	 	19	 
	4.4 Certain Notices
	 	 	19	 
	4.5 Enforcement
	 	 	19	 
	4.6 Turnover of Collateral
	 	 	20	 
	4.7 Payments From Enforcement Rights
	 	 	20	 
	4.8 Waivers and Amendments of Credit Documents
	 	 	21	 
	4.9 Sharing of Financial Information
	 	 	21	 
	4.10 Agents
	 	 	22	 
	 
	 	 	 	 
	5. CONCERNING THE COLLATERAL AGENT
	 	 	22	 
	 
	 	 	 	 
	5.1 Appointment and Authority
	 	 	22	 
	5.2 Rights as a Secured Party
	 	 	22	 
	5.3 Exculpatory Provisions
	 	 	22	 
	5.4 Reliance by Collateral Agent
	 	 	23	 
	5.5 Delegation of Duties
	 	 	24	 
	5.6 Resignation of Collateral Agent
	 	 	24	 
	5.7 Non-Reliance on Collateral Agent and Other Secured Parties
	 	 	25	 
	5.8 Collateral Agent May File Proofs of Claim
	 	 	25	 
	5.9 Expenses and Indemnification
	 	 	26	 
	5.10 Expenses and Indemnification by Secured Parties
	 	 	28	 
	 
	 	 	 	 
	6. REPRESENTATIONS AND WARRANTIES
	 	 	29	 
	 
	 	 	 	 
	7. AMENDMENT OF THIS AGREEMENT
	 	 	29	 
	 
	 	 	 	 
	7.1 Amendments
	 	 	29	 
	7.2 Waivers
	 	 	29	 
	 
	 	 	 	 
	8. APPROVAL BY THE COMPANY AND GUARANTORS; COMPANY’S OBLIGATIONS ABSOLUTE
	 	 	30	 
	 
	 	 	 	 
	8.1 General
	 	 	30	 

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	8.2 Obligations Absolute
	 	 	30	 
	8.3 No Additional Rights for Company Hereunder
	 	 	30	 
	 
	 	 	 	 
	9. COVENANTS CONCERNING COLLATERAL
	 	 	31	 
	 
	 	 	 	 
	9.1 Additional Assignments, and Mortgages
	 	 	31	 
	9.2 Perfection Certificate Supplement
	 	 	31	 
	 
	 	 	 	 
	10. CONDEMNATION
	 	 	32	 
	 
	 	 	 	 
	10.1 Takings
	 	 	32	 
	10.2 Application of Awards
	 	 	32	 
	10.3 Settlement of Condemnation Claims
	 	 	33	 
	10.4 Offered Repayment
	 	 	34	 
	10.5 Applicable Prepayment Provisions
	 	 	35	 
	10.6 Waiver of Offered Repayment
	 	 	35	 
	10.7 Collateral Agent Expenses
	 	 	35	 
	 
	 	 	 	 
	11. APPLICATION OF INSURANCE PROCEEDS
	 	 	36	 
	 
	 	 	 	 
	11.1 General
	 	 	36	 
	11.2 Offered Repayment
	 	 	37	 
	11.3 Remnant Insurance Proceeds
	 	 	38	 
	11.4 Notice of Casualty; Adjusting Loss
	 	 	39	 
	11.5 Reimbursement of Collateral Agent’s Expenses
	 	 	39	 
	 
	 	 	 	 
	12. PROCEEDS FROM SALE OF ASSETS
	 	 	40	 
	 
	 	 	 	 
	12.1 General
	 	 	40	 
	12.2 Net Proceeds from an Asset Disposition
	 	 	40	 
	12.3 Offered Repayment
	 	 	40	 
	12.4 Collateral Agent Expenses
	 	 	42	 
	 
	 	 	 	 
	13. MISCELLANEOUS
	 	 	42	 
	 
	 	 	 	 
	13.1 Further
Assurances, Etc.
	 	 	42	 
	13.2 No
Individual Action; Marshaling; Etc.
	 	 	42	 
	13.3 Successors and Assigns
	 	 	42	 
	13.4 Notices
	 	 	43	 
	13.5 Termination; Full Release of Collateral
	 	 	43	 
	13.6 Partial Release of Collateral
	 	 	45	 
	13.7 Applicable Law
	 	 	47	 
	13.8 Severability
	 	 	47	 
	13.9 Counterparts
	 	 	47	 
	13.10 Section Headings
	 	 	47	 
	13.11 Complete Agreement
	 	 	47	 
	13.12 Additional Future Debt
	 	 	47	 

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Schedules and Exhibits

	 	 	 
	Schedule 1.1

	 	Existing First Priority Liens
	Schedule 13.4

	 	Addresses
	 
	 	 
	Exhibit A

	 	Form of Joinder Agreement
	Exhibit B

	 	Form of Perfection Certificate
	Exhibit C

	 	Security Document Amendments

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AMENDED AND RESTATED

COLLATERAL AGENCY AND INTERCREDITOR AGREEMENT

     This AMENDED AND RESTATED COLLATERAL AGENCY AND INTERCREDITOR AGREEMENT (as may be amended
from time to time, this “Agreement”), dated as of the 5th day of September, 2006, by and
among: (i) Bank of America, N.A. (in its individual capacity herein referred to as the “Collateral
Agent Bank” and in its capacity as collateral agent herein referred to as the “Collateral Agent”),
(ii) Bank of America, N.A., a national banking association (“Bank of America”), as U.S. Agent (as
defined below) under the Bank Credit Agreement (as defined below) for the Bank Credit Agreement
U.S. Lenders (as defined below), (iii) The Prudential Insurance Company of America and Prudential
Retirement Insurance and Annuity Company (together with their respective successors and assigns as
Holders of Notes, as defined below, the “Noteholders”), (iv) The Northern Trust Company, an
Illinois banking corporation, as party to a Trade Agreement (as defined below) (together with its
successors and assigns, “Northern”), (v) A. M. Castle & Co., a Maryland corporation (together with
its successors and assigns, the “Company”), (vi) each Guarantor (as defined below) which executes
this Agreement or which from time to time hereafter executes an instrument accepting and agreeing
to the provisions of this Agreement, and (vii) any holders of Additional Future Debt (as defined
below).

P R E A M B L E

     WHEREAS, U.S. Bank National Association, Bank of America, N.A., JPMorgan Chase Bank, N.A.,
LaSalle Business Credit, LLC, the Noteholders, Northern, the Company and each Guarantor are parties
to that certain Collateral Agency and Intercreditor Agreement, dated as of March 20, 2003 (the
“Prior Collateral Agency and Intercreditor Agreement”), pursuant to which U.S. Bank National
Association has served as Collateral Agent for the Secured Parties identified therein; and

     WHEREAS, U.S. Bank National Association has submitted its resignation as Collateral Agent to
the Secured Parties (as defined in the Prior Collateral Agency and Intercreditor Agreement) and the
Company and the Secured Parties under the Prior Collateral Agency and Intercreditor Agreement have
appointed Bank of America as successor Collateral Agent under the Prior Collateral Agency and
Intercreditor Agreement; and

     WHEREAS, Bank of America, N.A., Bank of America, N.A. Canada Branch, the other financial
institutions named therein as lenders, the Company and A. M. Castle & Co. (Canada) Inc. have
entered into an Amended and Restated Credit Agreement, dated as of the date hereof (as from time to
time modified, amended, supplemented or restated, the “Bank Credit Agreement”); and

     WHEREAS, the Company and the Noteholders entered into a Note Agreement, dated as of November
17, 2005 (as from time to time modified, amended, supplemented or restated, the “Note Agreement”),
as amended by a First Amendment to Note Agreement, dated as of September 5, 2006; and

 

 

     WHEREAS, the Company and Northern entered into an Amended and Restated Trade Acceptance
Purchase Agreement dated as of September 5, 2006 (as from time to time modified, amended,
supplemented or restated, the “Trade Agreement”); and

     WHEREAS, the parties hereto desire to amend and restate the Prior Collateral Agency and
Intercreditor Agreement as provided herein.

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

     1. DEFINITIONS.

          1.1 Definitions. The following terms shall have the meanings set forth in this
Section 1 or elsewhere in the provisions of this Agreement referred to below:

     Action. See Section 2.2(a).

     Actionable Default. Shall mean any Actionable Payment Default and any other Event of
Default which permits any one or more holders of Secured Obligations to accelerate the maturity of
the Secured Obligations held by it.

     Actionable Payment Default. Shall mean any failure of the Company or any Guarantor to
pay any of the Secured Obligations as and when due and payable in accordance with the terms of the
Bank Credit Agreement, the Note Documents, the Trade Agreement, any Additional Future Debt Document
or Security Document, whether by acceleration (including automatic acceleration upon the
commencement of a bankruptcy case) or otherwise and the expiration of ninety (90) days after such
failure (collectively, a “Payment Default”), or the commencement of any bankruptcy, insolvency,
reorganization or other similar case or proceeding by or against the Company or any Guarantor, or
the making by the Company or any Guarantor of an assignment for the benefit of its creditors.

     Additional Future Debt. Shall mean (a) any increase in the maximum principal amount
of the Principal Obligations incurred after the date hereof in compliance with the terms of the
Credit Documents and this Agreement and/or (b) any additional indebtedness of the Company or any
Guarantor, in each case, incurred after the date hereof in compliance with the terms of the Credit
Documents and this Agreement so long as, in each such case, the holder of such additional
indebtedness, the Collateral Agent, each existing Secured Party, the Company and each Guarantor
shall have executed and delivered to the Collateral Agent a Joinder Agreement in the form of
Exhibit A attached hereto.

     Additional Future Debt Documents. Shall mean documents, instruments and agreements
relating to Additional Future Debt as the same may be amended, renewed, extended, restated,
supplemented or otherwise modified from time to time.

     Affiliate. Shall mean as to any Person, a Person controlling, controlled by, or under
common control with such Person.

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     Agreement. As defined in the introductory paragraph hereto.

     Approved Asset Disposition. Shall mean an Asset Disposition the terms of which have
been approved in writing by the Requisite Parties so long as the Collateral Agent shall have
received written direction from the Requisite Parties of such approval.

     Asset Disposition. Shall mean any Transfer so long as immediately before and
immediately after the consummation of any such Transfer and after giving effect thereto, no Default
or Event of Default exists.

     Asset Disposition Certificate. Shall mean with respect to any proposed Asset
Disposition a certificate executed by a Senior Officer which (a) states that no Default or Event of
Default then exists or will exist upon the consummation of such Asset Disposition and such Asset
Disposition is permitted by the terms of each of the Loan Documents, (b) describes such Asset
Disposition, (c) sets forth (i) estimated Net Proceeds to be received by the Obligors upon
consummation of such Asset Disposition and (ii) net book value of the Asset Disposition Collateral
in respect of such Asset Disposition together with the aggregate net book value of all Asset
Disposition Collateral in respect of all Asset Dispositions completed in the then current calendar
year.

     Asset Disposition Collateral. Shall mean any Collateral to be Transferred in
connection with an Asset Disposition.

     Bank of America. As defined in the introductory paragraph hereto.

     Bank Credit Agreement. As defined in the Preamble hereto.

     Bank Credit Agreement Debt. Shall mean all indebtedness, obligations and liabilities
of any of the Company and Guarantors to or for the benefit of U.S. Agent and U.S. Lenders (or their
Affiliates) arising or incurred under the Bank Credit Agreement Documents or the Guaranties related
thereto, existing on the date of this Agreement or arising hereafter, direct or indirect, joint or
several, absolute or contingent, matured or unmatured, arising by contract, operation of law or
otherwise, including, but not limited to, Post-Petition Interest. Notwithstanding the foregoing,
Bank Credit Agreement Debt shall not include any obligations for the payment of principal in excess
of $220,000,000 (plus (i) the amount of any applicable fees and costs payable to U.S. Agent or the
U.S. Bank Credit Agreement Lenders (or their Affiliates) under the Bank Credit Agreement Documents,
(ii) all Bank Credit Agreement Swap Obligations, and (iii) all Bank Credit Agreement Treasury
Management Obligations) plus the amount of any Additional Future Debt incurred under the Bank
Credit Agreement.

     Bank Credit Agreement Documents. Shall mean the Bank Credit Agreement and each other
document and instrument executed in connection with the Bank Credit Agreement, including, but not
limited to, any Swap Contract or any document or agreement evidencing any Treasury Management
Obligation (as defined in the Bank Credit Agreement) between the Company and any Bank Credit
Agreement U.S. Lender or any of its Affiliates.

     Bank Credit Agreement Letter of Credit. Shall mean standby or commercial letter of
credit issued pursuant to the Bank Credit Agreement by Bank of America as U.S. L/C Issuer

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thereunder or issued by any other Bank Credit Agreement U.S. Lender that may then be operating
as U.S. L/C Issuer thereunder.

     Bank Credit Agreement Swap Obligations. Shall mean all obligations, liabilities and
indebtedness of the Company to any Bank Credit Agreement U.S. Lender or its Affiliate with respect
to any Swap Contract.

     Bank Credit Agreement Treasury Management Obligations. Shall mean all obligations,
liabilities and indebtedness of any Obligor to any Bank Credit Agreement U.S. Lender or any
Affiliate of any Bank Credit Agreement U.S. Lender with respect to any treasury management or
similar services provided to any such Obligor by such Bank Credit Agreement U.S. Lender or its
Affiliate.

     Bank Credit Agreement U.S. Lenders. Shall mean each of the financial institutions
from time to time party to the Bank Credit Agreement and identified therein as a U.S. Lender and
shall specifically include each assignee of any Person who at any time is a U.S. Lender under the
Bank Credit Agreement and shall also specifically include each person becoming a party to the Bank
Credit Agreement in the capacity of a U.S. Lender after the date hereof.

     Bankruptcy Code. Shall mean the Bankruptcy Code of 1978, as amended, or any successor
statute.

     Bankruptcy Event. Shall mean and include:

               (a) the pendency of any case against the Company or any Guarantor arising under the Bankruptcy
Code;

               (b) the pendency of any case against the Company or any Guarantor arising under any other
bankruptcy, reorganization, compromise, arrangement, insolvency, readjustment of debt, dissolution,
liquidation or other similar law of any jurisdiction;

               (c) the appointment of, or taking possession by, a trustee, receiver, custodian, liquidator or
similar official of the Company or any Guarantor or any substantial assets of any of them;

               (d) any assignment for the benefit of creditors of the Company or any Guarantor; and

               (e) the failure of the Company or any Guarantor generally to pay its debts as they become due.

     Business Day. Shall mean any day, other than Saturday, Sunday or a legal holiday or
any other day on which banking institutions in Chicago, Illinois generally are authorized by law to
close.

     Collateral. Shall mean any of the properties and assets of whatever nature, tangible
or intangible, now owned or existing or hereafter acquired or arising, of the Company or any of the
Guarantors in which at the time of reference a Lien has been granted or has purportedly been

4

 

granted to the Collateral Agent to secure the Secured Obligations and which has not been
released pursuant to the terms hereof and all other cash provided to be the subject of a Lien to
secure any of the Secured Obligations as contemplated by any Security Document, and any property
and assets paid or payable to the Collateral Agent under any of the Guaranties or any subordination
agreement, in each case other than Excluded Collateral.

     Collateral Agent. As defined in the introductory paragraph hereto unless and until a
successor Collateral Agent shall have been appointed pursuant to Section 5.6, and
thereafter “Collateral Agent” shall mean such successor Collateral Agent.

     Collateral Agent Bank. As defined in the introductory paragraph hereto and any
successor bank, in its individual capacity, serving as a successor Collateral Agent pursuant to
Section 5.6.

     Company. As defined in the introductory paragraph hereto.

     Credit Documents. Shall mean, collectively, the Bank Credit Agreement Documents, the
Note Documents, the Trade Agreement, any Additional Future Debt Documents and the Security
Documents.

     Debtor Relief Laws. Shall mean the Bankruptcy Code of the United States, and all
other liquidation, conservatorship, bankruptcy, assignment for the benefit of creditors,
moratorium, rearrangement, receivership, insolvency, reorganization, or similar debtor relief Laws
of the United States or other applicable jurisdictions from time to time in effect and affecting
the rights of creditors generally.

     Default. Shall mean any event or condition which, with the giving of notice or the
lapse of time, or both, would become an Event of Default.

     Demand Notice. See Section 4.4(a).

     Disposition. See Section 4.1(b).

     Distribution Amount. See Section 4.1(c)(i).

     Enforcement Notice. Shall mean written notice given by the Requisite Parties or
Special Requisite Parties, as the case may be, to the Collateral Agent (a) stating that a Notice of
Actionable Default has theretofore been given by such Requisite Parties or Special Requisite
Parties, as the case may be, to the Collateral Agent and that the Actionable Default specified in
such Notice of Actionable Default continued to exist uncured for the applicable period described in
Section 4.5, and (b) setting forth instructions from such Requisite Parties or Special
Requisite Parties, as the case may be, to the Collateral Agent to exercise all or any such rights,
powers and remedies as are available under the Security Documents and making such additional
statements as may be called for under Section 4.5.

     Event of Default. Shall mean any “Event of Default” under and as defined in the Trade
Agreement, any “Event of Default” under and as defined in the Note Agreement, any “Event of
Default” under and as defined in the Bank Credit Agreement or any similar event or condition

5

 

giving rise to the right of a holder or holders of Additional Future Debt to accelerate or
which results in the acceleration of the maturity of such Additional Future Debt. Notwithstanding
anything to the contrary set forth in any Credit Document, each Secured Party hereby agrees that
any default by the Company or any Guarantor in the performance or observance of any covenant or
provisions of this Agreement or any Security Document shall not constitute an “Event of Default”
under such Credit Document unless such default shall continue for more than thirty (30) days after
the first date on which a Senior Officer of the Company becomes aware of such default.

     Excluded Collateral. Shall mean (a) any property (whether currently existing or
subsequently acquired) subject to a Permitted First Priority Lien, to the extent the agreement
creating such Lien prohibits additional Liens on such property; (b) cash sufficient to secure the
Company’s (or any of its Subsidiaries’) obligations to pay its workmen’s compensation benefits,
including obligations to any Person providing surety, insurance, letters of credit or other credit
support so long as such cash does not secure any other obligation for any other purpose; (c) all
property purchased with proceeds of the note issued pursuant to the Loan Agreement dated as of
November 1, 1994 between the Company and the City of Hammond, Indiana; (d) all properties and
assets of A. M. Castle & Co. (Canada), Inc., and any successor holder of such assets; (e) any
leasehold interest in any real property leased by the Company or any Subsidiary the termination of
which would not result in a Material Adverse Effect; (f) all shares of capital stock (or other
similar equity or ownership interests) in a Person (other than the Company or any wholly-owned
Subsidiary of the Company) where the assignment, transfer or hypothecation thereof, for collateral
purposes, is prohibited or restricted by the terms and conditions of its constitutive (or similar
formation related) documents, any agreements or arrangements with the holders of its capital stock,
(or other similar equity or ownership interests) or any other similar agreements, and, as a result
of any such assignment, transfer or hypothecation by any Obligor, such Obligor would be deprived of
any material right or otherwise suffer any material adverse affect in respect of such capital
stock, other interests or otherwise under such documents, agreements or arrangements; (g) all
Property of a Person existing at the time such Person becomes a Subsidiary of the Company to the
extent that any agreement or arrangement (the amount of all obligations which are created or
evidenced by, or the subject of, such agreements or arrangements are herein referred to as “Future
Negative Pledge Obligations”) to which such Person is a party or by which such Person is bound
prohibits or restricts Liens on such Property so long as such agreement or arrangement was not
entered into in contemplation of such Person becoming a Subsidiary and the existence of the Lien of
the Collateral Agent would result in such Subsidiary being deprived of any material right or
otherwise suffering any material adverse effect with respect to such Property or otherwise under
any such agreement or arrangement so long as the aggregate amount of all Future Negative Pledge
Obligations and the aggregate amount of obligations secured by Future Acquired Liens does not
exceed 10% of Adjusted Consolidated Net Worth (as such term is defined in the Bank Credit Agreement
as in effect on the date hereof); (h) all stock issued by any Foreign Subsidiary; (i) all assets of
any Foreign Subsidiary; and (j) all general intangibles to the extent that the grant of a security
interest therein is prohibited by, or constitutes a breach or default under or results in the
termination of or requires any consent not obtained under, any contract, license, agreement,
instrument or other document evidencing or giving rise to such property, except to the extent that
the term in such contract, license, agreement, instrument or other document providing for such
prohibition, breach, default or

6

 

termination or requiring such consent is ineffective under Sections 9-406, 9-407 or 9-408 of
the Illinois UCC or other applicable law.

     Excluded Insurance Proceeds. Shall mean any proceeds of insurance directly relating
to a claim for, or a loss arising from (a) business interruption insurance so long as all such
proceeds are used by the Obligors to maintain the business operations whose interruption was the
subject of the claim giving rise to such proceeds and (b) the damage, destruction or loss of
inventory so long as such proceeds are used by the Obligors for working capital or to replace the
inventory whose damage, destruction or loss was the subject of the claim giving use to such
proceeds.

     Existing First Priority Liens. Shall mean Liens securing obligations existing on the
date of this Agreement as such liens and obligations are disclosed in the lender’s title insurance
policies described on Schedule 1.1 to this Agreement and the additional Liens disclosed on
Schedule 1.1.

     Foreign Subsidiary. As defined in the Bank Credit Agreement (as in effect on the date
hereof).

     Future Acquired Liens. Shall mean Liens on Property of a Person which shall have
become a Subsidiary after the date of this Agreement so long as (a) each such Lien existed on the
date such Person became a Subsidiary and such Lien was not created in contemplation of such Person
becoming a Subsidiary and (b) the aggregate amount of obligations secured by all such Liens,
together with the aggregate amount of all Future Negative Pledge Obligations, does not exceed 10%
of Adjusted Consolidated Net Worth (as such term is defined in the Bank Credit Agreement as in
effect on the date hereof).

     Future Negative Pledge Obligations. See definition of “Excluded Collateral” in this
Section 1.1.

     Guaranties. See definition of “Guarantors” in this Section 1.1.

     Guarantors. Shall mean each of Datamet, Inc., an Illinois corporation, Keystone Tube
Company, LLC, a Delaware limited liability company, Total Plastics, Inc., a Michigan corporation,
Paramont Machine Company, LLC, a Delaware limited liability company, Advanced Fabricating
Technology, LLC, a Delaware limited liability company, Oliver Steel Plate Co., a Delaware
corporation, Metal Mart, LLC, a Delaware limited liability company, Transtar Intermediate Holdings
#2, Inc., a Delaware corporation, Transtar Metals Holdings, Inc., a Delaware corporation, Transtar
Inventory Corp., a Delaware corporation, Transtar Metals Corp., a Delaware corporation and Transtar
Marine Corp., a Delaware corporation, and any other party that may from time to time hereafter
execute and deliver a guaranty for the benefit of any one or more of the Secured Parties
guarantying the Secured Obligations (collectively, the “Guaranties”).

     Insured. See Section 12.1(a)(i).

     Investment Grade. Shall mean in respect of any obligation that such obligation (i)
has a rating of Baa3 or better by Moody’s Investor Service or a rating BBB-or better by Standard &

7

 

Poor’s; or (ii) in the judgment of the Majority Secured Parties has a credit quality equal to
or better than one which would be afforded either of the ratings described in clause (i) of this
definition.

     Joinder Agreement. Attached as Exhibit A hereto.

     Lien. Shall mean any mortgage, security deed, deed of trust, pledge, lien, security
interest or other encumbrance, whether now existing or hereafter created, acquired or arising, and
whether voluntary or involuntary, to secure payment of a debt or performance of an obligation.

     Loan Documents. Shall mean the Credit Documents (other than the Security Documents).

     Majority Secured Parties. Shall mean a group of holders of Secured Obligations which
includes each of (a) holders of at least 51% of the Note Principal Obligations (exclusive of any
Yield-Maintenance Amount), (b) the holders of at least 51% in principal amount of the Bank Credit
Agreement Debt (exclusive of Bank Credit Agreement Swap Obligations and Bank Credit Agreement
Treasury Management Obligations), (c) the holders of at least 51% in principal amount of the Trade
Agreement Debt and (d) the holders of at least 51% in principal amount of Additional Future Debt,
if any.

     Material Adverse Effect. Shall mean a material adverse effect on (a) the business,
assets, properties, profits, prospects, operations or condition, financial or otherwise, of the
Company and its Subsidiaries, on a consolidated basis or (b) the ability of the Company to perform
its obligations under any of the Credit Documents, or (c) the ability of any of the holders of the
Secured Obligations to enforce the Company’s obligations under any of the Credit Documents.

     Material Provisions. Shall mean, in respect of any Security Documents, any provision
which describes the nature of the Secured Obligations secured thereby or establishes that all
Secured Obligations are pari passu with respect to the Lien created by such Security Document.

     Mortgage. Shall mean any mortgage or deed of trust, whether now existing or hereafter
created, encumbering any of the Mortgaged Property.

     Mortgaged Property. Shall mean any Significant Real Estate Interest, now owned or
hereafter acquired, of the Company or any of the Guarantors with respect to which at the time of
reference a mortgage or deed of trust has been granted or has purportedly been granted to the
Collateral Agent to secure the Secured Obligations and which has not been released pursuant to the
terms hereof.

     Mortgagor. Shall mean the Company or any of the Guarantors who has granted to the
Collateral Agent for the benefit of the Secured Parties a Mortgage on any Mortgaged Property.

     Net Proceeds. Shall mean, with respect to any Taking, damage, destruction or loss of
Collateral or any Asset Disposition (each, a “Payment Event”), the cash payments (including any
cash received by way of deferred payment pursuant to, or by monetization of, a note receivable or
otherwise, but only as and when so received) received by one or more Obligors or

8

 

the Collateral Agent as a result of such Payment Event, in each case, net of (a) any bona fide
direct out of pocket costs and expenses incurred in connection with such Payment Event, (b)
payments made by any such Obligor to retire or repay indebtedness (other than the Secured
Obligations) where payment of such indebtedness is secured by Permitted First Priority Liens on the
Property which is the subject of such Payment Event and such indebtedness shall have become due or
payable as a result of such Payment Event, (c) so long as no Default or Event of Default shall have
occurred and be continuing, amounts required to be paid to any Person (other than the Company of
any wholly-owned Subsidiary of the Company) owning a beneficial interest in any Property which is
the subject of such Payment Event and (d) so long as no Default or Event of Default shall have
occurred and be continuing, income taxes reasonably estimated to be actually payable within two
years of the date of the applicable Payment Event as a result of any gain recognized in connection
therewith.

     Northern. As defined in the introductory paragraph hereto.

     Note Agreement. As defined in the Preamble hereto.

     Note Debt. Shall mean all indebtedness, obligations and liabilities of any of the
Company and the Guarantors to or for the benefit of any Noteholder arising or incurred under the
Note Agreement (including, without limitation, Yield-Maintenance Amounts), the Notes or the
Guaranties related thereto, existing on the date of this Agreement or arising hereafter, direct or
indirect, joint or several, absolute or contingent, matured or unmatured, arising by contract,
operation of law or otherwise, including, but not limited to, Post-Petition Interest.
Notwithstanding the foregoing, Note Debt shall not include Note Principal Obligations to the extent
that such Note Principal Obligations exceed $75,000,000 plus the principal amount of any Additional
Future Debt incurred under the Note Documents.

     Note Documents. Shall mean the Notes and the Note Agreement.

     Noteholders. As defined in the introductory paragraph hereto, together with their
respective successors and assigns.

     Note Principal Obligations. Shall mean at the time of reference thereto, the
principal amount then outstanding under the Notes or any instruments or agreements issued or
entered into in compliance with the terms of this Agreement and the Credit Documents.

     Notes. Shall mean the Notes issued to the Noteholders pursuant to the Note Agreement,
together with any promissory notes or other evidences of indebtedness issued in exchange for,
replacement of or substitution for any Notes under the Note Agreement.

     Notice of Actionable Default. A notice by (i) the Requisite Parties delivered to the
Collateral Agent, stating that an Actionable Default has occurred and is continuing or (ii) the
Special Requisite Parties delivered to the Collateral Agent stating that an Actionable Payment
Default has occurred and is continuing.

     Obligors. Shall mean collectively, the Company and each of the Guarantors.

9

 

     Offered Repayment. Shall mean a written offer made by any of the Obligors to each of
the holders of Secured Obligations to use the Net Proceeds in respect of any Taking under
Section 10, or damage, destruction or loss under Section 11, or Asset Disposition
under Section 12 to ratably prepay (based on the aggregate unpaid principal amount
(including contingent reimbursement obligations)) the Secured Obligations outstanding at the time
of any such Offered Repayment, any accrued and unpaid interest thereon and, in the case of any
Asset Disposition as contemplated by Section 12, Yield-Maintenance Amount and other
prepayment or breakage fees) in an aggregate amount equal to such Net Proceeds as the case may be;
in each case, such Offered Repayment shall be net of all reasonable costs incurred by the
Collateral Agent in connection with the obtaining or collecting of such proceeds, including,
without limitation, reasonable attorney’s fees.

     Payment Default. See Section 1.1 (in the definition of Actionable Payment
Default).

     Perfection Certificate. Shall mean the fully completed Perfection Certificate
substantially in the form of Exhibit B hereto delivered to the Collateral Agent by the
Company on the date hereof.

     Permitted First Priority Lien. Shall mean (a) Existing First Priority Liens (b)
Future Acquired Liens and (c) the Liens described in (and permitted by) each of (i) clause (a),
clause (b) and clause (h) of Section 6D. of the Note Agreement (as in effect on the date hereof),
(ii) clause (a), clause (b) and clause (h) of Section 7.04 of the Bank Credit Agreement (as in
effect on the date hereof) as incorporated by reference pursuant to Section 6.3 of the Trade
Agreement (as in effect on the date hereof), (iii) clause (a), clause (b) and clause (h) of Section
7.04 of the Bank Credit Agreement (as in effect on the date hereof) and (iv) similar clauses in any
Additional Future Debt Documents.

     Permitted Investments. Shall mean

               (a) investments in certificates of deposit (and equivalent investments, including, without
limitation, overnight federal reserve fund deposits) issued by any bank, trust company or national
association that is acting as Collateral Agent hereunder and having a maturity of 365 days or less;

               (b) investments in commercial paper rated on the date of acquisition thereof “A-1”(or higher)
by Standard & Poor’s or “P-1” (or higher) by Moody’s (or any future comparable ratings issued by
Standard & Poor’s or Moody’s), provided that such obligations mature within 270 days of the date of
acquisition thereof;

               (c) investments in obligations of the United States of America, provided that such obligations
mature within 365 days of the date of acquisition thereof;

               (d) investments in “money market” funds limited to obligations of the type defined in clauses
(a), (b) and (c) above.

     Person. Shall mean any individual, corporation, partnership, limited liability
company, trust, unincorporated association, business or other legal entity, and any government or
any governmental agency or political subdivision thereof.

10

 

     Post-Petition Interest. Shall mean any interest or entitlement to fees or expenses or
other charges that accrues after the occurrence of any Bankruptcy Event, whether or not allowed or
allowable in any such proceeding with respect to such Bankruptcy Event.

     Principal Obligations. Shall mean Note Principal Obligations in an amount not to
exceed $75,000,000, the outstanding principal amount of Bank Credit Agreement Debt (exclusive of
Bank Credit Agreement Swap Obligations and Bank Credit Agreement Treasury Management Obligations)
in an amount not to exceed $220,000,000 and the outstanding principal amount of Trade Agreement
Debt in an amount not to exceed $10,000,000, and the outstanding principal amount of all Additional
Future Debt.

     Property. Shall mean, unless otherwise specifically limited, real or personal
property of any kind, tangible or intangible, choate or inchoate.

     Pro Rata. Shall mean as to any Secured Party, as of any date of determination
thereof, the percentage which such Secured Party’s outstanding Principal Obligations represent of
the total outstanding Principal Obligations (excluding for purposes of this calculation any
Yield-Maintenance Amount, Bank Credit Agreement Swap Obligations and Bank Credit Agreement Treasury
Management Obligations).

     Real Estate Facility. Shall mean any real property owned by any Obligor, including
any land, buildings and other improvements thereon.

     Related Parties. Shall mean, with respect to any Person, such Person’s Affiliates and
the partners, directors, officers, employees, agents and advisors of such Person and of such
Person’s Affiliates.

     Requisite Parties. Shall mean as of any date the holders of at least 51% in aggregate
outstanding principal amount of all Bank Credit Agreement Debt (exclusive of Bank Credit Agreement
Swap Obligations and Bank Credit Agreement Treasury Management Obligations), Note Debt (exclusive
of any Yield-Maintenance Amount), Trade Agreement Debt and Additional Future Debt on such date.

     Responsible Officer. Shall mean with respect to the Collateral Agent, an officer in
its Agency Management Services Department (or similar department) of the Collateral Agent Bank.

     Secured Obligations. Shall mean collectively, (a) the Note Debt, (b) the Bank Credit
Agreement Debt, (c) the Trade Agreement Debt, (d) any Additional Future Debt and (e) all
indebtedness, obligations and liability of the Company or any Guarantor to the Collateral Agent
under any Security Document.

     Secured Parties. Shall mean the U.S. Agent for the ratable benefit of the Bank Credit
Agreement U.S. Lenders and each of the holders of Note Debt, Bank Credit Agreement Debt, Trade Debt
and Additional Future Debt.

     Security Document Amendments. Shall mean each of the documents listed on Exhibit
C hereto.

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     Security Documents. Shall mean any and all instruments or agreements pursuant to
which a Lien is created or arises in favor of the Collateral Agent or any other Secured Party to
secure any of the Secured Obligations.

     Senior Officer. Means the chief executive officer, chief financial officer, principal
accounting officer, treasurer or controller of the Company.

     Significant Real Estate Interest. Shall mean each Real Estate Facility (other than
any Excluded Collateral).

     Significant Subsidiary. As defined in the Bank Credit Agreement.

     Special Cash Collateral Account. See Section 4.1(c).

     Special Requisite Parties. Shall mean as of any date the holders of at least 25% in
aggregate outstanding principal amount of all Bank Credit Agreement Debt (exclusive of Bank Credit
Agreement Swap Obligations and Bank Credit Agreement Treasury Management Obligations), Note Debt
(exclusive of any Yield-Maintenance Amount), Trade Agreement Debt and Additional Future Debt on
such date.

     Stock Pledge Agreement. Shall mean one or more instruments or agreements executed and
delivered to the Collateral Agent in connection with the execution and delivery of this Agreement
which purports to pledge and grant a security interest to the Collateral Agent in shares of capital
stock or other equity interest of any Subsidiary or other Person that are certificated or otherwise
physically evidenced.

     Subsidiary. As defined in the Bank Credit Agreement (as in effect on the date
hereof).

     Supermajority Secured Parties. Shall mean as of any date the holders of at least
66-2/3% in aggregate outstanding principal amount of all Bank Credit Agreement Debt (exclusive of
Bank Credit Agreement Swap Obligations and Bank Credit Agreement Treasury Management Obligations),
Note Debt (exclusive of any Yield-Maintenance Amount), Trade Agreement Debt and Additional Future
Debt on such date.

     Swap Contract. Shall mean (a) any and all rate swap transactions, basis swaps, credit
derivative transactions, forward rate transactions, commodity swaps, commodity options, forward
commodity contracts, equity or equity index swaps or options, bond or bond price or bond index
swaps or options or forward bond or forward bond price or forward bond index transactions, interest
rate options, forward foreign exchange transactions, cap transactions, floor transactions, collar
transactions, currency swap transactions, cross-currency rate swap transactions, currency options,
spot contracts, or any other similar transactions or any combination of any of the foregoing
(including any options to enter into any of the foregoing), whether or not any such transaction is
governed by or subject to any master agreement, and (b) any and all transactions of any kind, and
the related confirmations, which are subject to the terms and conditions of, or governed by, any
form of master agreement published by the International Swaps and Derivatives Association, Inc.,
any International Foreign Exchange Master Agreement, or any other master agreement (any such master
agreement, together with

12

 

any related schedules, a “Master Agreement”), including any such obligations or liabilities
under any Master Agreement.

     Taking. See Section 10.1.

     Trade Agreement. As defined in the Preamble hereto.

     Trade Agreement Debt. Shall mean all indebtedness, obligations and liabilities of any
of the Company and Guarantors to or for the benefit of Northern arising or incurred under the Trade
Agreement (including any prepayment premium) or the Guaranties related thereto, existing on the
date of this Agreement or arising hereafter, direct or indirect, joint or several, absolute or
contingent, matured or unmatured, arising by contract, operation of law or otherwise including, but
not limited to, Post-Petition Interest. Notwithstanding the foregoing, Trade Agreement Debt shall
not include any obligations for the payment of principal in excess of $10,000,000 (plus the amount
of any applicable fees and costs payable to Northern under the Trade Agreement) plus the amount of
any Additional Future Debt incurred under the Trade Agreement.

     Transfer. Shall mean any sale or other disposition of assets (including, without
limitation, stock of Subsidiaries) constituting Collateral in accordance with the terms of the Note
Documents, the Trade Agreement, the Bank Credit Agreement or any Additional Future Debt Documents.

     Undrawn LC Exposure. Shall mean the aggregate undrawn face amount of the outstanding
Bank Credit Agreement Letters of Credit.

     U.S. Agent. Shall mean Bank of America in its capacity as U.S. Agent for the ratable
benefit of the Bank Credit Agreement U.S. Lenders under the Bank Credit Agreement and its
successors and assigns.

     Yield-Maintenance Amount. Shall mean with respect to the Note Agreement and the Note
Debt owed thereunder, the “Yield-Maintenance Amount” as defined in the Note Agreement on the date
hereof.

          1.2 Terms Generally. The definitions in Section 1.1 shall apply (except as
otherwise specified) equally to both the singular and plural forms of the terms defined. Whenever
the context may require, any pronoun shall include the corresponding masculine, feminine and neuter
forms. The words “include”, “includes” and “including” shall be deemed to be followed by the
phrase “without limitation”. All references herein to Sections shall be deemed references to
Sections of this Agreement unless the context shall otherwise require.

     2. RECOURSE OF SECURED PARTIES; OTHER COLLATERAL; ACTION BY SECURED PARTIES.

          2.1 Recourse of Secured Parties; Other Collateral.

               (a) Each of the Secured Parties acknowledges and agrees that (i) it shall only have recourse
to the Collateral through the Collateral Agent and that it shall have no

13

 

independent recourse to the Collateral and (ii) the Collateral Agent shall have no obligation
to, and shall not (except as otherwise specifically provided herein) take, any action hereunder or
under any Security Document to which it is a party, except upon instructions from the Requisite
Parties or the Special Requisite Parties, as the case may be, in accordance with Section
2.2 hereof.

               (b) Nothing contained herein shall restrict (i) the rights of any Secured Party (other than
the Collateral Agent) to pursue remedies, by proceedings in law and equity, to collect any of the
Secured Obligations or to enforce the performance of and provisions of any of the Secured
Obligations, to the extent in either case that such remedies do not relate to the Collateral or
interfere with the Collateral Agent’s ability to take action hereunder or under any Security
Document or (ii) the rights of any Secured Party (other than the Collateral Agent) to initiate an
action or actions in any bankruptcy, reorganization, compromise, arrangement, insolvency,
readjustment of debt, dissolution or liquidation or similar proceeding in its individual capacity
and to appear or be heard on any matter before the bankruptcy or other applicable court in any such
proceeding, including, without limitation, with respect to any question concerning the
post-petition usage of Collateral and post-petition financing arrangements.

               (c) Neither the Collateral Agent nor any other Secured Party shall contest the validity,
perfection, priority or enforceability of or seek to avoid any Lien securing any Secured
Obligation, and each party hereby agrees to cooperate in the defense of any action contesting the
validity, perfection, priority or enforceability of such Liens. Except as expressly provided in
this Agreement with respect to distributions of Collateral or proceeds by the Collateral Agent to
the Secured Parties, no Secured Party shall have the right to obtain any of the Collateral for its
sole account or the benefit for its sole account of any Lien securing any of the Secured
Obligations. No Secured Party may seek, and each Secured Party hereby waives, any right to require
any of the Collateral to be partitioned.

          2.2 Action by Secured Parties.

               (a) Any request, demand, authorization, direction, notice, consent, waiver or other action
permitted or required by this Agreement to be given or taken by the Requisite Parties, the Special
Requisite Parties or the Majority Secured Parties, as the case may be, shall be embodied in and
evidenced by one or more instruments and signed by or on behalf of such Requisite Parties, such
Special Requisite Parties or such Majority Secured Parties, as the case may be, and, except as
otherwise expressly provided in any such instrument to be effective at a later date, any such
action shall become effective when such instrument or instruments shall have been received by the
Collateral Agent. The instrument or instruments evidencing any action (and the action embodied
therein and evidenced thereby) are sometimes referred to herein as an “Action” of the Persons
signing such instrument or instruments. U.S. Agent shall for all purposes of this Agreement act as
agent for Bank Credit Agreement U.S. Lenders as provided in the Bank Credit Agreement and shall
have the exclusive right to make or give any request, demand, authorization, direction, notice,
consent, waiver or other action required or permitted by this Agreement on behalf of the Bank
Credit Agreement U.S. Lenders as holders of the Bank Credit Agreement Debt in accordance with
Section 9.11(i)(iv) of the Bank Credit Agreement.

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               (b) The Collateral Agent shall be entitled to rely absolutely upon an Action of the Requisite
Parties, the Special Requisite Parties or the Majority Secured Parties, as the case may be, if such
Action purports to be taken by or on behalf of such Requisite Parties, such Special Requisite
Parties or such Majority Secured Parties, as the case may be, and nothing in this Section
2.2 or elsewhere in this Agreement shall be construed to require the Collateral Agent to
demonstrate that such Requisite Parties, such Special Requisite Parties or such Majority Secured
Parties, as the case may be, have been authorized by the Bank Credit Agreement U.S. Lenders, the
U.S. Agent, the Noteholders, Northern and/or the holders of Additional Future Debt, as applicable,
to take any action which they purport to be taking, the Collateral Agent being entitled to rely
conclusively, and being fully protected in so relying, on any Action of the Bank Credit Agreement
U.S. Lenders, the U.S. Agent, the Noteholders, Northern, and/or the holders of Additional Future
Debt, as the case may be.

     3. DUTIES OF COLLATERAL AGENT.

          3.1 Notices to the Secured Parties. The Collateral Agent shall use commercially
reasonable efforts to, within five (5) Business Days following receipt thereof, furnish to each of
the Noteholders, Northern, U.S. Agent and the holders of Additional Future Debt:

               (a) a copy of each Notice of Actionable Default, Demand Notice or Enforcement Notice received
by the Collateral Agent;

               (b) a copy of each certificate received by the Collateral Agent rescinding or withdrawing a
Notice of Actionable Default, Demand Notice or Enforcement Notice;

               (c) written notice of any release or subordination of rights by the Collateral Agent of any
Collateral; and

               (d) a copy of any notice or other communication given or received by the Collateral Agent
under any Security Document.

     The Collateral Agent shall not be required to furnish any of the foregoing of the items to any
Person to the extent the specific terms of this Agreement require another party to this Agreement
to furnish such item to such Person.

     Any Notice of Actionable Default, Demand Notice or Enforcement Notice shall be deemed to have
been given when actually received by a Responsible Officer of the Collateral Agent and, subject to
Section 4.5(c), to have been rescinded or withdrawn when a Responsible Officer of the
Collateral Agent has actually received from the notifying party a notice rescinding or withdrawing
such Notice of Actionable Default, Demand Notice or Enforcement Notice. Any Notice of Actionable
Default, Demand Notice or Enforcement Notice shall be deemed to be outstanding at all times after
such notice has been given until such time, if any, as such notice has been rescinded or withdrawn.

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          3.2 Actions Under Security Documents.

               (a) The Collateral Agent shall not be obligated to take any action under this Agreement or any
of the Security Documents except for the performance of such duties as are specifically set forth
herein or therein. The Collateral Agent shall take any action under or with respect to the
Security Documents or the Collateral which is requested by the Requisite Parties or the Special
Requisite Parties, as the case may be, pursuant to Section 4.5; provided that the
Collateral Agent shall not amend or waive any provision of the Security Documents except in
accordance with Section 7.

               (b) The Collateral Agent shall exercise or refrain from exercising all such rights, powers and
remedies as shall be available to it under the Security Documents to which it is a party or any of
them or with respect to the Collateral solely in accordance with an Enforcement Notice received
from the Requisite Parties or the Special Requisite Parties, as the case may be, in accordance with
Section 4.5. The Collateral Agent shall have the right to decline to follow any such
direction if (i) the Collateral Agent, being advised by counsel and acting in good faith,
determines that the directed action is not permitted by the terms of this Agreement or the Security
Documents or is unlawful or (ii) the Collateral Agent, being advised by counsel and acting in good
faith, is in reasonable doubt as to whether such directed action is permitted by this Agreement or
the Security Documents or would involve it in personal liability unless the Collateral Agent shall
be provided written confirmation from the Requisite Parties or the Special Requisite Parties, as
the case may be, providing the Enforcement Notice that the Collateral Agent’s indemnity by the
other Secured Parties contained in this Agreement would apply without exception for such directed
action (absent gross negligence and willful misconduct of the Collateral Agent). All directions
from the Requisite Parties or the Special Requisite Parties, as the case may be, shall be as
contemplated and permitted by this Agreement and the applicable Security Document. The Collateral
Agent may rely on any such direction given to it by the Requisite Parties or the Special Requisite
Parties, as the case may be, and shall be fully protected, and shall under no circumstances (absent
the gross negligence and willful misconduct of the Collateral Agent) be liable to the Company, any
Guarantor, any holder of any Secured Obligations, or any other Person for taking or refraining from
taking action in accordance with such direction and the otherwise applicable terms of this
Agreement.

               (c) In the absence of an Enforcement Notice (which may relate to the exercise of specific
remedies or to the exercise of remedies in general) from the Requisite Parties or the Special
Requisite Parties, as the case may be, the Collateral Agent shall not, without the consent of the
Requisite Parties or the Special Requisite Parties, as the case may be, exercise remedies available
to it under any Security Documents or with respect to the Collateral or any part thereof.

          3.3 Status of Moneys Received. All moneys received by the Collateral Agent pursuant
to this Agreement shall be held in trust for the purposes for which they were paid, and shall be
segregated from any other moneys held by the Collateral Agent, and may be deposited by the
Collateral Agent under such general conditions as may be prescribed by law in the general banking
department of the Collateral Agent, and the Collateral Agent shall not be liable for any interest
thereon.

16

 

          4. CERTAIN INTERCREDITOR ARRANGEMENTS.

               4.1 General Rule: Pari Passu Rights Against Collateral.

                    (a) General Rule. All amounts owing with respect to the Secured Obligations shall be
secured by the Collateral, without distinction as to whether some Secured Obligations are then due
and payable and other Secured Obligations are not then due and payable, all in accordance with the
priorities established in this Section 4.

                    (b) Application of Collateral Proceeds Generally. Except as specifically provided in
Section 10, Section 11 and Section 12, if the Collateral Agent receives any
cash amounts as payments under any Security Documents or as proceeds of or otherwise constituting
the Collateral (which amounts, under the terms of any of the Security Documents, are to be applied
to any of the Secured Obligations), including, without limitation, any amounts received pursuant to
Section 4.6 and Section 4.7, any net proceeds received by the Collateral Agent in
connection with any sale, exchange or other disposition (a “Disposition”) of Collateral and, if
applicable, any sum received by the Collateral Agent pursuant to Section 507(b) of the Bankruptcy
Code in any bankruptcy case in which the Company or a Guarantor is a debtor, such cash amounts
shall be applied (subject to Section 4.2 and Section 5.4(b) hereof as follows):

     (i) first, to the payment of any unpaid fees or other amounts
expressly owing under this Agreement to the Collateral Agent pursuant to
Section 5.9 or Section 5.10;

     (ii) second, equally and ratably to reimburse the Secured
Parties for any amounts paid by the Secured Parties pursuant to Section
5.10;

     (iii) third, pro rata to all accrued and unpaid interest on
Bank Credit Agreement Debt, Note Debt, Trade Agreement Debt, Additional
Future Debt in proportion to the respective amounts thereof owing to each
Secured Party on the date of such distribution;

     (iv) fourth, pro rata to all outstanding principal amounts of
Bank Credit Agreement Debt, Note Debt (other than Yield-Maintenance Amounts,
Bank Credit Agreement Swap Obligations and Bank Credit Agreement Treasury
Management Obligations), Trade Agreement Debt, Additional Future Debt in
proportion to the respective amounts thereof owing to each Secured Party on
the date of distribution;

     (v) fifth, pro rata, to all other Secured Obligations
(including, without limitation, Yield-Maintenance Amounts, Bank Credit
Agreement Swap Obligations and Bank Credit Agreement Treasury Management
Obligations and fees payable under the Credit Documents), if any, then
remaining unpaid, in proportion to the respective amounts owed to each
Secured Party; and

17

 

     (vi) sixth, after indefeasible payment in full of and provision
for all Secured Obligations, to the Company or to whomever else the
Collateral Agent may be required to pay by applicable law.

                    (c) Special Deposit Provisions. Any payment pursuant to clause (iii) or clause (iv)
of Section 4.1(b) with respect to Undrawn LC Exposure shall be paid to (or retained by) the
Collateral Agent for deposit in an account (the “Special Cash Collateral Account”) to be held as
Collateral for the Secured Obligations and to be applied as provided in this Section
4.1(c).

     (i) Distributions of Cash Collateral. On each date after the
creation of the Special Cash Collateral Account on which a reduction in
Undrawn LC Exposure occurs by reason of a drawing under any Bank Credit
Agreement Letter of Credit as certified to the Collateral Agent by U.S.
Agent, the Collateral Agent shall distribute from the Special Cash
Collateral Account an amount (a “Distribution Amount”) equal to the lesser
of (1) the balance held by the Collateral Agent in the Special Cash
Collateral Account and (2) all or a portion of the amount of such draw, as
certified to the Collateral Agent by U.S. Agent, which would have been
received by U.S. Agent, prior to such time had such draw been made
immediately prior to the first distribution made under Section
4.1(b) and the Secured Obligation resulting from such draw represented a
separate non-contingent Secured Obligation. The Distribution Amount shall
be distributed to pay any outstanding non-contingent amount of
non-contingent Bank Credit Agreement Debt representing an increase in the
amount of Bank Credit Agreement Debt on account of such draw. At such times
as the Undrawn LC Exposure is reduced to zero, any amount remaining in the
Special Cash Collateral Account, after the payment of all prior Distribution
Amounts, shall be distributed as provided in clauses (iii), (iv), (v) and
(vi) of Section 4.1(b). U.S. Agent shall provide copies of each
certificate delivered to the Collateral Agent under this Section
4.1(c) to the Company and each of the other Secured Parties when such
certificate is delivered to the Collateral Agent.

     (ii) Investment of Special Cash Collateral Account. All
amounts in the Special Cash Collateral Account shall be invested by the
Collateral Agent in Permitted Investments, as directed in writing by the
Company and all income on such Permitted Investments shall be retained in
the Special Cash Collateral Account until all Bank Credit Agreement Debt is
paid in full and thereafter shall be distributed as provided in Section
4.1(b).

               4.2 Non-Cash Distributions or Proceeds. If the Collateral Agent receives any non-cash
distributions or proceeds in respect of the Collateral, then, unless the Requisite Parties instruct
the Collateral Agent to the contrary, the Collateral Agent shall hold such non-cash distributions
and proceeds as Collateral upon the terms of this Agreement and the Security Documents until
converted to cash and thereupon applied or disbursed in accordance with this

18

 

Section 4; provided, however, that, if any non-cash distribution is
received by the Collateral Agent and is to be applied in satisfaction of any Secured Obligation by
operation of a plan of reorganization under Chapter 11 of the federal Bankruptcy Code or otherwise
as required by applicable law, the Requisite Parties may, instead of awaiting the conversion of
such non-cash distribution to cash, direct the Collateral Agent to distribute such non-cash
distribution as provided in Section 4.1(b), except in respect of a distribution under
Section 4.1(b)(i).

               4.3 Additional Collateral. Each of U.S. Agent, each Noteholder, Northern and each
holder of Additional Future Debt hereby covenants and agrees that it will not take, hold or suffer
to exist any security interest in or Lien on any assets as security for any of the Secured
Obligations unless such security interest or Lien is granted in favor of, or otherwise made
available to, the Collateral Agent for the benefit of U.S. Agent, the Noteholders, Northern and the
holders of Additional Future Debt as contemplated by this Agreement.

               4.4 Certain Notices.

                    (a) Each of U.S. Agent, each Noteholder, Northern and each holder of Additional Future Debt
hereby agrees to give written notice to the Collateral Agent of any demand for payment in full of
the Secured Obligations owing to the demanding party, whether by acceleration of such obligations
or otherwise (a “Demand Notice”). Any Requisite Parties or Special Requisite Parties, as the case
may be, giving a Notice of Actionable Default or Enforcement Notice to the Collateral Agent shall
contemporaneously give a copy thereof to each of the other Secured Parties.

                    (b) Neither U.S. Agent, any Noteholder, Northern nor any holder of Additional Future Debt
shall incur liability of any kind should it, upon the occurrence of any Event of Default, refrain
from accelerating maturity or otherwise demanding payment in full of any Secured Obligations owing
to it, or should it refrain from exercising any of its rights and remedies against the Company, any
Guarantor or any other obligor in respect of the Secured Obligations.

               4.5 Enforcement.

                    (a) The Collateral Agent shall (subject to the provisions of Section 3.2 and
Section 5) take any such actions in the exercise of rights and remedies under the Security
Documents as are directed in an Enforcement Notice given by the Requisite Parties or Special
Requisite Parties, as the case may be, at any time more than five (5) Business Days after a Notice
of Actionable Default shall have been given to a Responsible Officer of the Collateral Agent with
respect to the Event of Default that is the basis (or one of the bases) of the Enforcement Notice.
In the event the Collateral Agent shall have received conflicting directions from the Special
Requisite Parties and the Requisite Parties, it shall follow the directions of the Requisite
Parties, except to the extent that such direction of the Requisite Parties would have the effect of
rescinding or nullifying any Enforcement Notice given by Special Requisite Parties, in which case
the Collateral Agent shall follow the directions of the Special Requisite Parties set forth in such
Enforcement Notice. In the event the Collateral Agent shall receive conflicting directions as set
forth in two or more Enforcement Notices delivered by any one or more holders of Secured
Obligations, each of which constitutes Special Requisite Parties, it shall either

19

 

(i) follow the directions of the Requisite Parties or (ii) if no such directions shall have
been given by the Requisite Parties within thirty (30) Business Days from the most recent
directions so received from a group of holders constituting Special Requisite Parties submit such
matter to a court of competent jurisdiction to establish the proper course of action it shall be
required to take. It is acknowledged that the Collateral Agent shall have no obligation to take
any action (including, without limitation, submitting such matter to court) unless it has received
security or indemnity as contemplated by Section 5.9(a).

                    (b) Each of U.S. Agent, each Noteholder, Northern and each holder of Additional Future Debt
agrees that it will promptly, and in any event within five (5) Business Days after the request by
one of the others (which request may be made telephonically), advise the requesting party
(telephonically, confirmed in writing) as to the outstanding amount of Bank Credit Agreement Debt,
Note Debt, Trade Agreement Debt or Additional Future Debt owed to it. Any party may rely on such
information (or other means available to it) to determine whether the Requisite Parties or the
Special Requisite Parties, as the case may be, have acted with respect to any action or proposed
action.

                    (c) Any Enforcement Notice, when issued, may be rescinded or withdrawn with the consent of the
Requisite Parties or Special Requisite Parties, whichever shall have given such Enforcement Notice
        .

               4.6 Turnover of Collateral. If any Secured Party acquires custody, control or
possession of any payment constituting any Collateral (including proceeds therefrom), other than
pursuant to the terms of Section 4.1(b), Section 4.1(c) or Section 4.2
hereof, such Secured Party shall promptly cause such payment or Collateral to be delivered to or
put in the custody, possession or control of the Collateral Agent or, if the Collateral Agent shall
so designate, an agent of the Collateral Agent (which agent may be a branch or affiliate of the
Collateral Agent) in the same form of payment received, with appropriate endorsements, for
distribution in accordance with the provisions of Section 4.1 or Section 4.2, as
applicable. Until such time as the provisions of the immediately preceding sentence have been
complied with, such Secured Party shall be deemed to hold such Collateral in trust for the
Collateral Agent. Notwithstanding the foregoing, neither U.S. Agent, any Noteholder, Northern nor
any holder of Additional Future Debt shall be required to deliver to the Collateral Agent or such
agent of the Collateral Agent, any amounts received by U.S. Agent, such Noteholder, Northern or
such holder of Additional Future Debt prior to receipt by the Collateral Agent of a Notice of
Actionable Default to the extent that such amounts constitute (a) payments of principal on Bank
Credit Agreement Debt, the Note Debt, the Trade Agreement Debt or Additional Future Debt required
to be made pursuant to the Loan Documents and due and paid prior to such date, or (b) regular
payments of interest, Yield-Maintenance Amounts, Bank Credit Agreement Swap Obligations, Bank
Credit Agreement Treasury Management Obligations, fees and other charges on or in respect of Bank
Credit Agreement Debt, the Note Debt, the Trade Agreement Debt or Additional Future Debt due and
paid prior to such date.

               4.7 Payments From Enforcement Rights. Each of the Secured Parties agrees with each
other Secured Party that (a) if any Secured Party exercises any right of setoff, banker’s lien or
similar right with respect to any Collateral or any assets of the Company or any Guarantor, the
amount set off shall be applied pro rata to the Secured Obligations in accordance

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with Section 4.1(b) or Section 4.2, as the case may be, and (b) if such
Secured Party shall receive from the Company or any Guarantor, whether by voluntary payment,
exercise of the right of setoff, counterclaim, cross-action, enforcement of the claim in respect of
the Secured Obligations owing to such Secured Party by proceedings against the Company at law or in
equity or by proof thereof in bankruptcy, reorganization, liquidation, receivership or similar
proceedings, or otherwise, for application to the payment of the Secured Obligations owing to such
Secured Party any amount in excess of its ratable portion of the payments received by the other
Secured Parties with respect to Bank Credit Agreement Debt, Note Debt, Trade Agreement Debt and
Additional Future Debt (as the case may be) held by all of the Secured Parties as contemplated by
Section 4.1(b) or Section 4.2, as the case may be, such Secured Party will make
such disposition and arrangements with the other Secured Parties with respect to such excess,
either by way of distribution, pro tanto assignment of claims, subrogation or otherwise as shall
result in each Secured Party receiving in respect of the Secured Obligations owing to it its
proportionate payment as contemplated by Section 4.1(b) or Section 4.2, as the case
may be; provided that if all or any part of such excess payment is thereafter recovered
from such Secured Party, such disposition and arrangements shall be rescinded and the amount
restored to the extent of such recovery, but without interest.

               4.8 Waivers and Amendments of Credit Documents. Each of the Noteholders, Northern,
U.S. Agent and each holder of Additional Future Debt agrees that, without the written consent of
the Majority Secured Parties, it shall not modify or amend any provisions of or give any waiver
with respect to the Credit Documents to which such party hereto is a signatory, if the effect of
such modification or amendment or waiver is (i) to increase the Principal Obligations of the Note
Debt, Trade Agreement Debt, Bank Credit Agreement Debt or the then outstanding Additional Future
Debt (unless such increase in Note Debt, Trade Agreement Debt, Bank Credit Agreement Debt or
Additional Future Debt constitutes Additional Future Debt, in which case no such consent shall be
required), or (ii) to amend or modify any term defined therein which is incorporated by reference
into this Agreement, or is specifically referred to in this Agreement in such a way as to alter its
meaning in this Agreement, or (iii) to provide for loans to be made or letters of credit to be
issued (other than by extension or renewal) after the issuance of an Enforcement Notice, or (iv) to
amend or modify any provision of any of the Security Documents or this Agreement except as provided
therein or herein. Except as otherwise specified in the preceding sentence, the Noteholders,
Northern, U.S. Agent and the holders of Additional Future Debt, without the consent of the other
parties, shall be free to deal with the Company and the Guarantors in their respective sole
discretion under and in respect of the provisions of the Loan Documents to which they are party,
with the right and power without limitation to modify, amend or waive any terms or provisions of
such Loan Documents, to grant extensions of the time of payment or performance, and to make
compromises and settlements with the Company or any Guarantor.

               4.9 Sharing of Financial Information. The Company acknowledges and consents to any
exchange of information by and among U.S. Agent, each Noteholder, Northern and each holder of
Additional Future Debt, without regard to whether the impact of any such exchange is favorable or
unfavorable to the Company and without regard to the accuracy or completeness of any information so
exchanged.

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               4.10 Agents. Except as specifically provided in this Agreement, and except for the
role of the Collateral Agent as specified in this Agreement, Bank of America is not acting as agent
for any other Secured Party (other than as U.S. Agent for Bank Credit Agreement U.S. Lenders
pursuant to the Bank Credit Agreement), no Noteholder is acting as agent for any other Secured
Party and Northern is not acting as agent for any other Secured Party; and nothing stated or
implied in this Agreement shall be deemed to create such an agency relationship.

          5. CONCERNING THE COLLATERAL AGENT.

               5.1 Appointment and Authority. Each of the Noteholders, Bank of America and Northern
hereby irrevocably appoints Bank of America to act on its behalf as the Collateral Agent hereunder
and under the Security Documents and authorizes the Collateral Agent to take such actions on its
behalf and to exercise such powers as are delegated to the Collateral Agent by the terms hereof or
thereof, together with such actions and powers as are reasonably incidental thereto. The
provisions of this Section 5 are solely for the benefit of the Collateral Agent, and the
Secured Parties, and neither the Company nor any Guarantor shall have rights as a third party
beneficiary of any of such provisions. Each of the Noteholders, U.S. Agent and Northern hereby
irrevocably appoints and authorizes the Collateral Agent to act as the agent of such Secured Party
and for purposes of acquiring, holding and enforcing any and all Liens on the Collateral to secure
any of the Secured Obligations, together with such powers and discretion as are reasonably
incidental thereto. In this connection, the Collateral Agent and any co-agents, sub-agents and
attorneys-in-fact appointed by the Collateral Agent pursuant to Section 5.5 for purposes of
holding or enforcing any Lien on the Collateral (or any portion thereof) granted under the Security
Documents, or for exercising any rights and remedies thereunder at the direction of the Agent),
shall be entitled to the benefits of all provisions of this Section 5, as though such
co-agents, sub-agents and attorneys-in-fact were the Collateral Agent under this Agreement) as if
set forth in full herein with respect thereto.

               5.2 Rights as a Secured Party. The Person serving as the Collateral Agent hereunder
shall have the same rights and powers in its capacity as a Secured Party as any other Secured Party
and may exercise the same as though it were not the Collateral Agent and the term “Secured Party”
shall, unless otherwise expressly indicated or unless the context otherwise requires, include the
Person serving as the Collateral Agent hereunder in its individual capacity. Such Person and its
Affiliates may accept deposits from, lend money to, act as the financial advisor or in any other
advisory capacity for and generally engage in any kind of business with the Company or any
Subsidiary or other Affiliate thereof as if such Person were not the Collateral Agent hereunder and
without any duty to account therefor to the Secured Parties.

               5.3 Exculpatory Provisions. The Collateral Agent shall not have any duties or
obligations except those expressly set forth herein and in the Security Documents. Without
limiting the generality of the foregoing, the Collateral Agent:

                    (a) shall not be subject to any fiduciary or other implied duties, regardless of whether a
Default or Event of Default has occurred and is continuing;

                    (b) shall not have any duty to take any discretionary action or exercise any discretionary
powers, except discretionary rights and powers expressly contemplated hereby

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or by the Security Documents that the Collateral Agent is required to exercise as directed in
an Action of the Requisite Parties, the Special Requisite Parties or the Majority Secured Parties,
as the case may be, provided that the Collateral Agent shall not be required to take any
action that, in its opinion or the opinion of its counsel, may expose the Collateral Agent to
liability or that is contrary to the Agreement or any Security Document or applicable law; and

                    (c) shall not, except as expressly set forth herein and in the Security Documents, have any
duty to disclose, and shall not be liable for the failure to disclose, any information relating to
the Company or any of its Subsidiaries or Affiliates that is communicated to or obtained by the
Person serving as the Collateral Agent or any of its Affiliates in any capacity.

     The Collateral Agent shall not be liable for any action taken or not taken by it (i) with the
consent or at the request of the Requisite Parties, the Special Requisite Parties or the Majority
Secured Parties, as the case may be, or (ii) in the absence of its own gross negligence or willful
misconduct. The Collateral Agent shall be deemed not to have knowledge of any Default or Event of
Default unless and until notice describing such Default or Event of Default is given to the
Collateral Agent by the Company or a Secured Party.

     The Collateral Agent shall not be responsible for or have any duty to ascertain or inquire
into (i) any statement, warranty or representation made in or in connection with this Agreement or
any Security Document, (ii) the contents of any certificate, report or other document delivered
hereunder or thereunder or in connection herewith or therewith, (iii) the performance or observance
of any of the covenants, agreements or other terms or conditions set forth herein or therein or the
occurrence of any Default or Event of Default, (iv) the validity, enforceability, effectiveness or
genuineness of this Agreement, any Security Document or any other agreement, instrument or
document, or the creation, perfection or priority of any Lien purported to be created by the
Security Documents, (v) the value or the sufficiency of any Collateral, or (v) the satisfaction of
any condition set forth herein, other than to confirm receipt of items expressly required to be
delivered to the Collateral Agent.

     Whenever pursuant to the provisions hereof or of any Security Document it is required that any
party hereto obtain the consent or approval of the Collateral Agent, or that any matter prove
satisfactory to the Collateral Agent, or if the Collateral Agent, in its best judgment, needs
clarification or instruction concerning its duties or obligations hereunder, the Collateral Agent,
prior to giving any such consent or approval or indicating its satisfaction with any such matter,
or performing such duty or obligation, shall (except where the failure to do so, in its good faith
judgment, could imperil the Collateral or the Liens thereon) be required to consult with the
Secured Parties in a manner deemed reasonable by the Collateral Agent, and the Collateral Agent
shall be protected in following any direction of the Requisite Parties or Special Requisite
Parties, as the case may be.

          5.4 Reliance by Collateral Agent.

               (a) The Collateral Agent shall be entitled to rely upon, and shall not incur any liability for
relying upon, any notice, request, certificate, consent, statement, instrument, document or other
writing (including any electronic message, Internet or intranet

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website posting or other distribution) believed by it to be genuine and to have been signed,
sent or otherwise authenticated by the proper Person. The Collateral Agent also may rely upon any
statement made to it orally or by telephone and believed by it to have been made by the proper
Person, and shall not incur any liability for relying thereon. The Collateral Agent may consult
with legal counsel (who may be counsel for the Company), independent accountants and other experts
selected by it, and shall not be liable for any action taken or not taken by it in accordance with
the advice of any such counsel, accountants or experts.

               (b) To the extent the Collateral Agent is required (pursuant to Section 4, 10,
11, 12, or otherwise) to determine any amount, or take any action to distribute any
amount, of any Secured Obligation or other payments hereunder, it shall have no obligation to do so
unless such amount shall have been certified in writing by the Requisite Parties or the Special
Requisite Parties, as the case may be, as being the amount in question. Each of the other parties
hereto agrees to certify such amounts upon request of the Collateral Agent. If any dispute or
disagreement shall arise as to the allocation of any sum of money received by the Collateral Agent
hereunder or under any Security Document, the Collateral Agent shall have the right to deliver such
sum to a court of competent jurisdiction and therein commence an action for interpleader.

          5.5 Delegation of Duties. The Collateral Agent may perform any and all of its duties
and exercise its rights and powers hereunder or under any Security Document by or through any one
or more sub-agents appointed by the Collateral Agent. The Collateral Agent and any such sub-agent
may perform any and all of its duties and exercise its rights and powers by or through their
respective Related Parties. The exculpatory provisions of this Section 5 shall apply to
any such sub-agent and to the Related Parties of the Collateral Agent and any such sub-agent.

          5.6 Resignation of Collateral Agent. The Collateral Agent may at any time give notice
of its resignation to the Secured Parties and the Company. Upon receipt of any such notice of
resignation, the Supermajority Secured Parties shall have the right, in consultation with the
Company (so long as no Default or Event of Default shall have occurred and be continuing), to
appoint a successor, which shall be a bank with an office in the United States, or an Affiliate of
any such bank with an office in the United States. If no such successor shall have been so
appointed by the Supermajority Secured Parties and shall have accepted such appointment within 30
days after the retiring Collateral Agent gives notice of its resignation, then the retiring
Collateral Agent may on behalf of the Secured Parties, appoint a successor Collateral Agent meeting
the qualifications set forth above; provided that if the Collateral Agent shall notify the
Company and the Secured Parties that no qualifying Person has accepted such appointment, then such
resignation shall nonetheless become effective in accordance with such notice and (a) the retiring
Collateral Agent shall be discharged from its duties and obligations hereunder and under the
Security Documents (except that in the case of any collateral security held by the Collateral Agent
on behalf of the Secured Parties under any of the Security Documents, the retiring Collateral Agent
shall continue to hold such collateral security until such time as a successor Collateral Agent is
appointed) and (b) all payments, communications and determinations provided to be made by, to or
through the Collateral Agent shall instead be made by or to each Secured Party directly, until such
time as the Majority Secured Parties appoint a successor Collateral Agent as provided for above in
this Section. Upon the acceptance of a successor’s

24

 

appointment as Collateral Agent hereunder, such successor shall succeed to and become vested
with all of the rights, powers, privileges and duties of the retiring (or retired) Collateral
Agent, and the retiring Collateral Agent shall be discharged from all of its duties and obligations
hereunder or under the Security Documents (if not already discharged therefrom as provided above in
this Section). The fees payable by the Company to a successor Collateral Agent shall be as agreed
to between the Company and such successor. After the retiring Collateral Agent’s resignation
hereunder and under the Security Documents, the provisions of this Section 5 shall continue
in effect for the benefit of such retiring Collateral Agent, its sub-agents and their respective
Related Parties in respect of any actions taken or omitted to be taken by any of them while the
retiring Collateral Agent was acting as Collateral Agent.

          5.7 Non-Reliance on Collateral Agent and Other Secured Parties. Each Secured Party
acknowledges that it has, independently and without reliance upon the Collateral Agent or any other
Secured Party or any of their Related Parties and based on such documents and information as it has
deemed appropriate, made its own credit analysis and decision to enter into this Agreement. Each
Secured Party also acknowledges that it will, independently and without reliance upon the
Collateral Agent or any other Secured Party or any of their Related Parties and based on such
documents and information as it shall from time to time deem appropriate, continue to make its own
decisions in taking or not taking action under or based upon this Agreement, any Security Document
or any related agreement or any document furnished hereunder or thereunder.

          5.8 Collateral Agent May File Proofs of Claim. In case of the pendency of any
proceeding under any Debtor Relief Law or any other judicial proceeding relative to the Company or
any Guarantor, the Collateral Agent (irrespective of whether the principal of any Secured
Obligation shall then be due and payable as herein expressed or by declaration or otherwise and
irrespective of whether the Collateral Agent shall have made any demand on the Company or any
Guarantor) shall be entitled and empowered, by intervention in such proceeding or otherwise:

               (a) to file and prove a claim for the whole amount of the principal and interest owing and
unpaid in respect of the Secured Obligations and to file such other documents as may be necessary
or advisable in order to have the claims of the Secured Parties and the Collateral Agent (including
any claim for the reasonable compensation, expenses, disbursements and advances of the Secured
Parties and the Collateral Agent and their respective agents and counsel and all other amounts due
the Secured Parties and the Collateral Agent under the Credit Documents and Section 5.9)
allowed in such judicial proceeding; and

               (b) to collect and receive any monies or other property payable or deliverable on any such
claims and to distribute the same;

and any custodian, receiver, assignee, trustee, liquidator, sequestrator or other similar official
in any such judicial proceeding is hereby authorized by each Secured Party to make such payments to
the Collateral Agent and, if the Collateral Agent shall consent to the making of such payments
directly to the Secured Parties, to pay to the Collateral Agent any amount due for the reasonable
compensation, expenses, disbursements and advances of the Collateral Agent and its agents and
counsel, and any other amounts due the Collateral Agent under Section 5.9.

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     Nothing contained herein shall be deemed to authorize the Collateral Agent to authorize or
consent to or accept or adopt on behalf of any Secured Party any plan of reorganization,
arrangement, adjustment or composition affecting the Secured Obligations or the rights of any
Secured Party to authorize the Collateral Agent to vote in respect of the claim of any Secured
Party or in any such proceeding.

          5.9 Expenses and Indemnification.

               (a) By countersigning this Agreement, the Company agrees (i) to reimburse the Collateral
Agent, promptly, for any reasonable expenses incurred by the Collateral Agent, including reasonable
counsel fees and disbursements and compensation of agents, arising out of, in any way connected
with, or as a result of, the execution or delivery of this Agreement or any Security Document or
any agreement or instrument contemplated hereby or thereby or the performance by the parties hereto
or thereto of their respective obligations hereunder or thereunder or in connection with the
enforcement or protection of the rights of the Collateral Agent and the Secured Parties hereunder
or under the Security Documents, and (ii) to indemnify and hold harmless the Collateral Agent and
its directors, officers, employees and agents, promptly, from and against any and all liabilities,
obligations, losses, damages, penalties, actions, judgments, suits, and reasonable costs, expenses
or disbursements of any kind or nature whatsoever (“Losses”) which may be imposed on, incurred by
or asserted against the Collateral Agent Bank in its capacity as the Collateral Agent or any of
them in any way relating to or arising out of this Agreement or any Security Document or any action
taken or omitted by them under this Agreement or any Security Document; provided that the
Company shall not be liable to the Collateral Agent for any portion of such Losses resulting from
the gross negligence or willful misconduct of the Collateral Agent or any of its directors,
officers, employees or agents as determined by a final non-appealable order of a court of competent
jurisdiction. A statement by the Collateral Agent that is submitted to the Company with respect to
the amount of such expenses and containing a basic description thereof and/or the amount of its
indemnification obligation shall be prima facie evidence of the amount thereof owing to the
Collateral Agent or the Collateral Agent Bank, as the case may be; provided,
however, that the Company shall nonetheless have the right to dispute any such amount and,
to the extent provided in this Section 5.9, the reasonableness thereof if notice of any
intended dispute is delivered to the Collateral Agent within 60 days after the Collateral Agent
delivers the applicable statement to the Company. Except as otherwise expressly provided herein,
the Collateral Agent shall be under no obligation to take any action to protect, preserve or
enforce any rights or interests in the Collateral or to take any action in connection with the
execution or enforcement of its duties hereunder, whether on its own motion or on request of any
other Person, which in the opinion of the Collateral Agent may involve loss, liability or expense
to it, unless one or more of the Secured Parties shall offer and furnish security or indemnity,
reasonably satisfactory to the Collateral Agent in accordance herewith, against loss, liability and
expense to the Collateral Agent. Notwithstanding anything to the contrary contained in this
Agreement, or any Security Document or any other documents noted in Section 10 of this
Agreement, in the event that the Collateral Agent is entitled or required to commence an action to
foreclose on such Security Document or other document, or otherwise exercise its remedies to
acquire control or possession of any property constituting all or part of the Collateral, the
Collateral Agent shall not be required to commence any such action or exercise any such remedy if
the Collateral Agent has determined in good faith that it may incur liability under any federal or
state environmental or

26

 

hazardous waste law, rule or regulation as the result of the presence at, or release on or
from, any property of any hazardous materials or waste, as defined under such federal or state
laws, unless it has received security or indemnity from a Person, in an amount and in form, all
satisfactory to the Collateral Agent in its sole discretion, protecting the Collateral Agent from
all such liability.

               (b) The indemnification provisions in this Section 5.9(b) and Section 5.9(c)
are in addition to the indemnification provisions in Section 5.9(a). Without limiting any
indemnification the Company or any Obligor has granted in any other provision of this Agreement or
in any other Credit Document, the Company and each Obligor hereby indemnifies and holds harmless
the Collateral Agent and each of the Secured Parties and their respective directors, officers,
employees and agents (collectively, the “Indemnified Parties”) from and against any and all Losses
which may be imposed on, incurred by or asserted against the Indemnified Parties or any of them as
a result of, arising out of, or relating to any claim, action or proceeding by any third party
(other than any Indemnified Party) with respect to (i) any accident, injury to or death of persons
or loss of or damage to or loss of the use of property occurring on or about any Mortgaged Property
or any part thereof or the adjoining sidewalks, curbs, vaults and vault spaces, if any, streets,
alleys or ways, (ii) any use, non-use or condition of any Mortgaged Property or any part thereof or
the adjoining sidewalks, curbs, vaults and vault spaces, if any, streets, alleys or ways, (iii) any
failure on the part of the Company or any applicable Obligor to perform or comply with any of the
terms of any Mortgage, (iv) performance of any labor or services or the furnishing of any materials
or other property in respect of any Mortgaged Property or any part thereof made or suffered to be
made by or on behalf of the Company or any applicable Obligor, (v) any negligence or tortious act
on the part of the Company or any applicable Mortgagor or any of its agents, contractors, lessees,
licensees or invitees, or (vi) any work in connection with any alterations, changes, new
construction or demolition of or additions to any Mortgaged Property (collectively, the
“Indemnified Liabilities”); provided, however, that the Company or any Obligor
shall not indemnify or hold harmless any Indemnified Party against any Indemnified Liabilities
arising (x) by reason of any Indemnified Party’s gross negligence or willful misconduct as
determined by a final non-appealable order of a court of competent jurisdiction, or (y) in the case
of clauses (i), (ii), (iv) and (vi) above, from an event occurring after termination of the
Company’s or such Obligor’s ownership or operation of any Mortgaged Property.

               (c) In the event that (i) any Indemnified Party is made a party to any action or proceeding by
reason of the execution, delivery or performance of this Agreement or any Security Document or (ii)
any action or proceeding shall be commenced in which it becomes necessary to defend or uphold the
lien of any Mortgage, all reasonable sums paid by the Indemnified Parties for the expense of any
litigation to prosecute or defend the rights and lien created by any Mortgage or otherwise shall be
paid by the Company or any applicable Mortgagor to such Indemnified Parties, as hereinafter
provided. The Company or any applicable Mortgagor will pay and save the Indemnified Parties
harmless against any and all liability with respect to any intangible personal property tax or
similar imposition of any jurisdiction or any subdivision or authority thereof now or hereafter in
effect, to the extent that the same may be payable by the Indemnified Parties in respect of any
Mortgage or any obligation secured thereby. In case any action, suit or proceeding is brought
against any Indemnified Party by reason of any such occurrence, the Company or any applicable
Mortgagor, upon written request of such Indemnified Party, will, at the Company’s or such
Mortgagor’s expense, resist and defend such

27

 

action, suit or proceeding or cause the same to be resisted or defended by counsel designated
by the Company or such Mortgagor and approved by such Indemnified Party, which approval shall not
be unreasonably withheld or delayed. The obligations of the Company and each Mortgagor under this
Section 5.9 shall survive any discharge or reconveyance of any Mortgage and the payment in
full of the obligations secured thereby. If and to the extent that the foregoing undertaking is
unenforceable for any reason, the Company and each Mortgagor hereby agrees to make the maximum
contribution to the payment and satisfaction of each of the Indemnified Liabilities which is
permissible under applicable law.

               (d) All amounts payable to the Indemnified Parties under this Section 5.9 shall be
deemed indebtedness secured by the Security Documents and shall bear interest at the highest
interest rate for overdue payments provided for in any of the Credit Documents commencing 30 days
after any Obligor’s receipt of written notice that such amounts are due and owing.

          5.10 Expenses and Indemnification by Secured Parties. Each of U.S. Agent, each
Noteholder, Northern and each holder of Additional Future Debt severally agrees (i) to reimburse
the Collateral Agent, promptly, in the amount of its Pro Rata share for any expenses referred to in
Section 5.9 which shall not have been reimbursed or paid by the Company or paid from the
proceeds of Collateral as provided herein and (ii) to indemnify and hold harmless the Collateral
Agent, the Collateral Agent Bank and its directors, officers, employees and agents, promptly, in
the amount of its pro rata share, from and against any and all Losses referred to in Section
5.9, to the extent the same shall not have been reimbursed by the Company or paid from the
proceeds of Collateral as provided herein; provided that none of U.S. Agent, any
Noteholder, Northern or any holder of Additional Future Debt shall be liable to the Collateral
Agent or the Collateral Agent Bank for any portion of such Losses resulting from the gross
negligence or willful misconduct of, or the gross negligence or willful misconduct in the failure
to perform any express duty undertaken under this Agreement to be performed by, the Collateral
Agent or the Collateral Agent Bank or any of its directors, officers, employees or agents as
determined by a final non-appealable order of a court of competent jurisdiction. For purposes of
this Section 5.10, the Pro Rata share of any Secured Party’s claim for which a
reimbursement or indemnity obligation arises under this Section 5.10 shall be determined as
of the last day of the calendar month preceding the date on which such claim was incurred and on
which any Principal Obligations were outstanding.

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          6. REPRESENTATIONS AND WARRANTIES. Each of the Collateral Agent, U.S. Agent, each
Noteholder, Northern, each holder of Additional Future Debt and, by countersigning this Agreement,
the Company and each Guarantor, represents and warrants to the other parties hereto that (a) the
execution, delivery and performance of this Agreement or the Joinder Agreement to which it is a
party (in the case of a holder of Additional Future Debt) (i) have been duly authorized by all
requisite corporate or other action on its part and (ii) do not conflict with or result in any
breach or contravention of any provision of law, statute, rule or regulation to which it is subject
or any judgment, order, writ, injunction, license or permit applicable to it and will not conflict
with any provision of its charter documents or bylaws or any agreement or other instrument binding
upon it; and (b) this Agreement or such Joinder Agreement, as the case may be, has been duly
executed and delivered by it and constitutes its legal, valid and binding obligation, enforceable
in accordance with its terms.

          7. AMENDMENT OF THIS AGREEMENT.

               7.1 Amendments. No modification or amendment of this Agreement shall be effective
unless the same shall be in writing and signed by the Majority Secured Parties and no modification
or amendment of any Security Document shall be effective, nor shall any waiver of any provision of
any Security Document be executed by the Collateral Agent, without the written consent of the
Majority Secured Parties; provided, however, (i) no amendment or waiver shall
adversely affect any of the Collateral Agent’s rights, immunities or rights to indemnification
hereunder or under any of the Security Documents or expand its duties or reduce any amount payable
to the Collateral Agent hereunder or under any Security Documents without the written consent of
the Collateral Agent; (ii) Sections 3 and 5 of this Agreement and any other
provision of this Agreement or of any of the Security Documents affecting the rights and
obligations of the Collateral Agent hereunder may not be amended without the written consent of the
Collateral Agent; (iii) no modification or amendment of Section 2.2 or the defined terms
used therein, Section 4.9, Section 5.4, Section 5.9, Section 6,
this Section 7.1(iii), Section 8, Section 9, Section 10,
Section 11 or Section 12 of this Agreement shall be effective unless the same shall
have been consented to by the Company; (iv) no modification, amendment or waiver that changes the
amount that a Secured Party receives from a distribution hereunder or that delays the time of a
distribution hereunder shall be effective without the consent of such Secured Party and (v) none of
the Material Provisions of any of the Security Documents may be created, amended or waived without
the consent of all holders of Secured Obligations; provided, further,
however, that the Collateral Agent is hereby authorized and directed to execute and deliver
the Security Document Amendments. Any Security Document executed after the date hereof shall be
approved by the Majority Secured Parties as to form.

               7.2 Waivers. Except as provided in Section 7.1, no waiver of any provision of
this Agreement and no consent to any departure by any party hereto from the provisions hereof shall
be effective unless such waiver or consent shall be set forth in a written instrument executed by
the party against which it is sought to be enforced, and then such waiver or consent shall be
effective only in the specific instance and for the purpose for which given. No notice to or
demand on any party hereto in any case shall entitle such party to any other or further notice or
demand in the same, similar or other circumstances.

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          8. APPROVAL BY THE COMPANY AND GUARANTORS; COMPANY’S OBLIGATIONS ABSOLUTE.

               8.1 General. By countersigning this Agreement, each of the Company and the Guarantors
acknowledges and consents to and agrees to perform and be bound by each provision of this Agreement
which expressly recites that the Company or such Guarantor is agreeing to such provision by
countersigning this Agreement.

               8.2 Obligations Absolute. Nothing contained in this Agreement shall impair, as
between the Company, or any Guarantor and each of U.S. Agent, Bank Credit Agreement U.S. Lenders,
each Noteholder, Northern and each holder of Additional Future Debt, (a) the obligation of the
Company or such Guarantor to pay to the Noteholders all amounts payable in respect of the Note Debt
as and when the same shall become due and payable in accordance with the terms thereof, or prevent
any of the Noteholders (except as expressly otherwise provided in this Agreement) from exercising
all rights, powers and remedies otherwise permitted by the Note Documents and by applicable law
upon a default in the payment or performance of the Note Debt, all, however, subject to the rights
of U.S. Agent, Northern and the holders of Additional Future Debt as set forth in this Agreement,
or (b) the obligation of the Company or such Guarantor to pay to U.S. Agent and U.S. Lenders all
amounts payable in respect of Bank Credit Agreement Debt as and when the same shall become due and
payable in accordance with the terms thereof, or prevent U.S. Agent and U.S. Lenders (except as
expressly otherwise provided in this Agreement) from exercising all rights, powers and remedies
otherwise permitted by the Bank Credit Agreement Documents and by applicable law upon a default in
the payment or performance of Bank Credit Agreement Debt, all, however, subject to the rights of
the Noteholders, Northern and the holders of Additional Future Debt as set forth in this Agreement,
(c) the obligation of the Company or such Guarantor to pay to Northern all amounts payable in
respect of the Trade Agreement Debt as and when the same shall become due and payable in accordance
with the terms thereof, or prevent Northern (except as expressly otherwise provided in this
Agreement) from exercising all rights, powers and remedies otherwise permitted by the Trade
Agreement and by applicable law upon a default in the payment or performance of the Trade Agreement
Debt, all, however, subject to the rights of the Noteholders, U.S. Agent and the holders of
Additional Future Debt as set forth in this Agreement and (d) the obligation of the Company or such
Guarantor to pay to any holder of Additional Future Debt all amounts payable in respect of such
Additional Future Debt as and when the same shall become due and payable in accordance with the
terms thereof, or prevent any holder of Additional Future Debt (except as expressly otherwise
provided in this Agreement) from exercising all rights, powers and remedies otherwise permitted by
such Additional Future Debt Documents and by applicable law upon a default in the payment or
performance of such Additional Future Debt, all, however, subject to the rights of the Noteholders,
Northern and U.S. Agent as set forth in this Agreement.

               8.3 No Additional Rights for Company Hereunder. If the Collateral Agent or any
Secured Party shall enforce its rights or remedies in violation of the terms of this Agreement, the
Company and each Guarantor agrees, by its consent hereto, that it shall not use such violation as a
defense to such enforcement by any such party nor assert such violation as a counterclaim or basis
for setoff or recoupment against any such party (except to the extent such violation affects the
rights of the Company or any Guarantor set forth in this Agreement). Nothing contained in this
Agreement shall constitute a commitment by U.S. Agent, any

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Noteholder, Northern or any holder of Additional Future Debt to make available to the Company
or any Guarantor any advances, loans or letters of credit beyond such advances, loans or letters of
credit as specifically provided for in the Loan Documents.

          9. COVENANTS CONCERNING COLLATERAL

               9.1 Additional Assignments, and Mortgages.

                    (a) Without limiting the obligations of the Company or any of its Subsidiaries in the Credit
Documents (and subject to the provisions of the Credit Documents and this Agreement), the Company
shall, and shall cause each of its Significant Subsidiaries which has not theretofore executed and
delivered one or more Security Documents in favor of the Collateral Agent with respect to all of
its assets (other than Excluded Collateral) as security for the Secured Obligations, to execute and
deliver to the Collateral Agent such Security Documents, and take such other action, as may be
requested to grant Liens to the Collateral Agent on all its assets (other than Excluded
Collateral).

                    (b) Without limiting the obligations of the Company or any of its Subsidiaries in the Credit
Documents (and subject to the provisions of the Credit Documents and this Agreement) if the Company
or any of its Significant Subsidiaries acquires after the date hereof ownership of a Significant
Real Estate Interest, the Company shall, and shall cause such Significant Subsidiary, to deliver
within a reasonable time period to the Collateral Agent a fully executed mortgage or deed of trust
over such interest in real estate, together with any environmental site assessments in the
possession of the Company or such Significant Subsidiary and evidence of insurance with the
Collateral Agent named as loss payee and additional insured with respect to such real estate as the
Collateral Agent (upon instruction from the Requisite Parties) may reasonably request in accordance
with good banking and lending practices, all in form and content acceptable to the Requisite
Parties. If such Significant Subsidiary is not a Guarantor, the Company shall cause such
Significant Subsidiary to become a Guarantor and a party to this Agreement. If the Company or the
Significant Subsidiary acquiring such Significant Real Estate Interest obtains a current owner’s
title insurance policy in respect of all or a portion of such Significant Real Estate Interest in
connection with the acquisition of such Significant Real Estate Interest, the Company shall also
deliver to the Collateral Agent a customary lender’s title insurance policy in respect of such
Significant Real Estate Interest for the benefit of the Collateral Agent from the insurance company
issuing such owner’s title insurance policy in an insured amount equal to the insured amount of
such owner’s title insurance policy. The Company further agrees that, following the taking of such
actions, the Collateral Agent shall have for the pari passu benefit of the Secured Parties a valid
and enforceable Lien over such interest in real estate, free and clear of all Liens, defects and
encumbrances other than such Liens, defects or encumbrances existing on such Significant Real
Estate Interest at the time such Significant Real Estate Interest shall have been so acquired.

               9.2 Perfection Certificate Supplement. The Company shall furnish to the Collateral
Agent and to each of the holders of Secured Obligations not later than October 15 of each year
beginning with the year 2007, a supplement to the Perfection Certificate setting forth as of
October 1st in such year all such additional or corrected information as may be necessary to cause
the Perfection Certificate, as so supplemented, to be true, correct and complete as of

31

 

October 1st in such year. Upon receipt of such Perfection Certificate supplement
the Collateral Agent shall forward a copy of such Perfection Certificate supplement to counsel to
the Collateral Agent. Upon request of the Collateral Agent or its counsel, the Company will take
any and all actions, and execute and deliver such documents and instruments, with respect to the
recording, filing, registering, re-recording, refiling and re-registering of any of the Security
Documents in respect of any Collateral as are necessary under the law of the jurisdiction in which
the Collateral is located or under other applicable law to maintain the continued perfection,
existence and priority of the Lien of the Security Documents (including, without limitation, to the
extent provided for therein and herein on any property acquired by the Company or any Guarantor
after the date hereof), and to fully preserve and protect the rights, and under the Security
Documents of or for the benefit of the Collateral Agent in respect of such Liens and the
Collateral.

          10. CONDEMNATION

               10.1 Takings. Each Obligor, in each Mortgage to which such entity is a party, shall
irrevocably assign, or cause to be assigned, to the Collateral Agent a security interest in and
Lien on any award or payment which may become payable to such entity by reason of any taking of a
Significant Real Estate Interest encumbered by such Mortgage or any part thereof, whether directly
or indirectly, temporarily or permanently, in or by condemnation or other eminent domain
proceedings (a “Taking”). All rights of the Collateral Agent under this Section 10 as to
any Significant Real Estate Interest are subject to any rights in favor of holders of Permitted
First Priority Liens in such Significant Real Estate Interest and shall be enforceable to the
fullest extent not prohibited or restricted by the terms of any agreements or instruments creating
such Permitted First Priority Liens.

               10.2 Application of Awards.

                    (a) Any awards or payments made with respect to any Taking relating to a Significant Real
Estate Interest shall be paid or distributed as provided in this Section. If any Obligor shall
receive directly any such award or payment, promptly following the receipt thereof such Obligor
shall transfer in immediately available funds the Net Proceeds in respect of such Taking from such
award or payment to the Collateral Agent and the Collateral Agent shall distribute such Net
Proceeds in accordance with the provisions of this Section 10.2(a). If the Collateral
Agent shall receive directly any such award or payment and no Default or Event of Default then
exists, the Collateral Agent shall, prior to making any other payment or distribution hereunder,
transfer to the Obligor whose Property was the subject of such Taking an amount in immediately
available funds equal to the difference between (a) the amount of such award or payment so received
and (b) the Net Proceeds relating thereto (as set forth in a certificate executed by a Senior
Officer and delivered to the Collateral Agent), and thereafter the remainder of such award or
payment shall be distributed as provided below. Any and all amounts to be distributed as provided
in this clause (a) shall be distributed as follows:

     (i) if the gross amount of any awards or payments with respect to such
Taking are in an amount less than $5,000,000, the Net Proceeds thereof held
by the Collateral Agent shall be immediately payable in immediately
available funds directly to such Obligor which is the subject of such Taking
upon receipt of a certificate executed by a Senior Officer

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which states that no Default or Event of Default exists and such
Obligor will use such Net Proceeds to repair or replace the Significant Real
Estate Interest which was the subject of such Taking; and

     (ii) if the gross amount of any awards or payments with respect to such
Taking equals or exceeds $5,000,000, the Secured Parties shall review with
the Company, the Company’s business proposal with respect to the application
of the Net Proceeds thereof held by the Collateral Agent, which proposal the
Company shall submit to the Secured Parties at any time but no later than
thirty (30) Business Days after the date such award has been paid, and give
due consideration to the merits and rationale of such proposal recognizing
the integrated nature of the Company’s manufacturing facilities and
operations. Within twenty (20) Business Days of receipt of the Company’s
proposal, the Requisite Parties shall, following review thereof, determine
(which determination shall be reasonably made and not unduly delayed)
whether such Net Proceeds shall be applied as provided in such proposal. If
the Company shall not have received a reply from the Requisite Parties by
the end of such twenty (20) Business Day period, the Company shall deliver a
written notice to each of the Secured Parties requesting a determination as
to such proposal and shall give the Requisite Parties an additional five (5)
Business Days after the delivery of such second notice to deliver a written
acceptance or rejection of such proposal. If the Requisite Parties fail to
advise the Company in writing of their determination with respect to such
proposal as provided herein prior to the end of such five (5) Business Day
period, they shall be deemed to have accepted such proposal. Upon actual or
deemed acceptance of such proposal, the Collateral Agent shall promptly
transfer in immediately available funds such Net Proceeds to the relevant
Obligor and the relevant Obligor shall act diligently and good faith to
apply such Net Proceeds substantially as provided in such proposal. If such
proposal is not accepted, then the Net Proceeds shall be applied as an
Offered Repayment as set forth in Section 10.4 below.

                    (b) Notwithstanding anything contained herein, if any Default or Event of Default shall have
occurred and be continuing, any Net Proceeds of a Taking, together with any other amounts held by
the Collateral Agent in respect of such Taking, shall be applied as an Offered Repayment as set
forth in Section 10.4 below unless the Majority Secured Parties and the Company agree
otherwise. The Collateral Agent shall promptly and, in any case, not more than five (5) Business
Days after the receipt of any funds hereunder satisfactorily identified to the Collateral Agent as
Net Proceeds of a Taking, inform the Obligors and the Secured Parties in writing of such receipt
and the amount thereof.

               10.3 Settlement of Condemnation Claims. Immediately upon receipt by any of the
Obligors of notice of the institution of any proceeding or negotiations for a Taking, the Obligors
shall give notice thereof to the Collateral Agent. The Collateral Agent may, but shall be under no
obligation to, appear in any such proceedings and participate in any such negotiations and may be
represented by counsel. The Obligors, notwithstanding that the

33

 

Collateral Agent may not be a party to any such proceeding, will promptly give, or cause to be
given, to the Collateral Agent copies of all notices, pleadings, judgments, determinations and
other papers received by any Obligor. The Obligors will not enter into, or permit to be entered
into, any agreement permitting or consenting to the Taking of the applicable Significant Real
Estate Interest, or any part thereof, or providing for the conveyance thereof in lieu of
condemnation, with anyone authorized to acquire the same in condemnation or by eminent domain
which, for any award or payment, is estimated by the Collateral Agent in good faith to exceed
$5,000,000, unless the Collateral Agent, acting at the direction of the Requisite Parties, shall
first have consented thereto in writing. The Secured Parties agree to consider granting such
consent without undue delay. If a Default or Event of Default has occurred and is continuing, the
Collateral Agent, acting at the direction of the Requisite Parties, shall be authorized, but shall
not be obligated, to negotiate, adjust, compromise or settle any Taking award and appear in any
proceeding arising in connection with such Taking. In connection therewith, the Obligors do hereby
irrevocably authorize, empower and appoint the Collateral Agent as attorney-in-fact for the
Obligors (which appointment is coupled with an interest) to do any and all of the foregoing in the
name and on behalf of the Obligors. The Requisite Parties agree to act in good faith without undue
delay in issuing any such written instruction and approving any such adjustment.

               10.4 Offered Repayment. Any Net Proceeds to be applied as an Offered Repayment as
provided in Section 10.2(a)(ii) or Section 10.2(b) shall be offered Pro Rata to all
Secured Parties as a prepayment as provided in Section 10.5 below. Each such Offered
Repayment shall be made in writing as soon as practicable after the Obligors being informed, in
writing, by the Collateral Agent of their obligation to make such Offered Repayment but, in any
case, not later than ten (10) days thereafter. Each Offered Repayment shall specify the date on
which the prepayment provided therein is to be made (which shall be a Business Day and shall not be
a date more than twenty-five (25) days after the date of the delivery of such Offered Repayment),
the principal amount of the Secured Obligations of each recipient of such Offered Repayment then
being offered to be prepaid and the amount of accrued interest to be paid thereon. To accept or
reject any Offered Repayment under this Section 10.4, in whole or in part, any Secured
Party shall cause a written notice of such acceptance or rejection to be delivered to the Obligors
not later than fifteen (15) days after the date of receipt by such holder of such Offered Repayment
(it being understood that the failure by a holder to accept in full or in part such Offered
Repayment as provided herein prior to the end of such fifteen (15) day period shall be deemed to
constitute a rejection of said Offered Repayment, or, if so indicated as to any Secured Party on
the Schedule 13.4 or in a written notice delivered to the Company by any Secured Party
within 60 days of the date hereof, an acceptance of such Offered Repayment). The Obligors shall
inform the Collateral Agent, in writing not less than five (5) Business Days prior to any date
fixed for effecting of the payments contemplated by any accepted Offered Repayment under this
Section 10.4, of all amounts due in respect of each of such accepted Offered Repayments,
the payment date therefor, the recipients thereof, and the payment address and payment method
required in respect of each such recipient. Upon the receipt by the Collateral Agent of written
instructions from the Obligors (or the Requisite Parties, in the event that the Obligors fail to
give such notice within a reasonable time) directing the Collateral Agent to effect the payment in
immediately available funds of accepted Offered Repayments from the Net Proceeds then held by the
Collateral Agent, as expressly provided in the immediately preceding sentence, the Collateral Agent
shall effect the payment of such accepted Offered Repayments as so instructed. To the extent that
any such Net Proceeds shall not have been

34

 

utilized to pay or prepay Secured Obligations as a result of one or more Secured Parties
rejecting (in whole or in part) or being deemed to have rejected their respective Offered
Repayments, upon receipt of a written demand from the Obligors (or the Requisite Parties, in the
event that the Obligors fail to give such notice within a reasonable time), the Collateral Agent
shall pay such remaining Net Proceeds, together with any interest accrued thereon, promptly to the
Obligors. Only upon the Collateral Agent effecting the payment in full of all of the amounts owing
in respect of the applicable accepted Offered Repayments under this Section 10.4 will the
Obligors be deemed to have discharged the payment obligations they have under this Section
10.4 with respect to such accepted Offered Repayments. The Obligors agree that they will
instruct the Collateral Agent to effect the payment of all related Offered Repayments to all
applicable Secured Parties simultaneously. Notwithstanding the foregoing, if, to the extent
required by the operation of any provision of any of the Credit Documents (it being understood that
the Loan Documents outstanding on the date hereof contain no such provision), the Obligors are
prohibited from making any Offered Repayment such Offered Repayment shall be deemed to have been
rejected by each Secured Party who is a party to the Credit Document containing such prohibition.

               10.5 Applicable Prepayment Provisions. Each accepted Offered Repayment pursuant to
Section 10.4 shall be made in accordance with, and subject to, (a) Section 2.06(b) of the
Bank Credit Agreement, (b) Section 4A(2) of the Note Agreement Document (with respect to
any prepayment of the Note Principal Obligations) but without payment of any Yield-Maintenance
Amount, (c) Section 3.6 and Section 3.4(iii)(d) of the Trade Agreement (with
respect to any prepayment of the Trade Agreement Debt) but without payment of any prepayment or
breakage fees, and (d) any one or more similar provisions in a similar Section in the Additional
Future Debt Documents (with respect to any prepayment of the Additional Future Debt), in each case,
as certified to the Collateral Agent by the Secured Party entitled to receive such Offered
Repayment. To the extent any such sections of the Loan Documents referred to in this Section
10.5 contain notice and procedural provisions, such provisions are hereby deemed waived to
permit prepayments under this Section 10.5.

               10.6 Waiver of Offered Repayment. The Majority Secured Parties may at any time within
twenty (20) days after receipt of written notification from the Collateral Agent of its receipt of
any funds arising from a Taking, as provided for in Section 10.2(b) above, waive the
obligation of the Obligors to make Offered Repayments in respect of such award, as provided in
Section 10.2 above, by delivering a written notice of waiver in respect thereof to the
Obligors and the Collateral Agent. In such event, the Collateral Agent shall promptly thereafter
transfer in immediately available funds all such funds held by it to the Obligor whose Property was
the subject of such Taking.

               10.7 Collateral Agent Expenses. The Obligors shall promptly reimburse the Collateral
Agent upon demand for all of the Collateral Agent’s reasonable out-of-pocket expenses (including
reasonable attorney’s fees) incurred in performing its duties under this Section 10. To
the extent the Collateral Agent has not been so reimbursed by the Obligors (or arrangements
therefor made to the satisfaction of the Collateral Agent), any disbursement to be made by the
Collateral Agent pursuant to this Section 10 shall be net of all of the Collateral Agent’s
reasonable out-of-pocket expenses (including reasonable attorney’s fees) incurred in performing its
duties under this Section 10.

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          11. APPLICATION OF INSURANCE PROCEEDS

               11.1 General.

                    (a) Any insurance proceeds (other than Excluded Insurance Proceeds) which are paid in respect
of the damage, destruction, loss or other casualty (each, a “Casualty”) of the Collateral under any
insurance policy required to be maintained by any one or more of the Obligors under the provisions
of any Credit Document shall be paid or distributed as provided in this Section. If any Obligor
shall receive directly any such insurance proceeds, promptly following the receipt thereof such
Obligor shall transfer in immediately available funds the Net Proceeds in respect of such Casualty
from such insurance proceeds to the Collateral Agent and the Collateral Agent shall distribute such
Net Proceeds in accordance with the provisions of this Section 11.1(a). If the Collateral
Agent shall receive directly any such insurance proceeds and no Default or Event of Default then
exists, the Collateral Agent shall, prior to making any other payment or distribution hereunder,
transfer to the Obligor whose Property was the subject of such Casualty an amount in immediately
available funds equal to the difference between (a) the amount of such insurance proceeds so
received and (b) the Net Proceeds relating thereto (as set forth in a certificate executed by a
Senior Officer and delivered to the Collateral Agent), and thereafter the remainder of such
insurance proceeds shall be distributed as provided below. Any and all amounts to be distributed
as provided in this Section 11.1(a) shall be distributed as follows:

     (i) if the insurance proceeds with respect to such Casualty are in an
aggregate amount less than $5,000,000 in respect of any single occurrence,
the Net Proceeds thereof held by the Collateral Agent shall be immediately
payable in immediately available funds directly to the applicable Obligor
which is the primary insured on such policy (the “Insured”) upon receipt of
a certificate executed by a Senior Officer which states that no Default or
Event of Default then exists and such Obligor will use such Net Proceeds to
repair or replace the Collateral which was the subject of such Casualty
which gave rise to such Net Proceeds; and

     (ii) if the insurance proceeds with respect to such Casualty equal or
exceed $5,000,000 in respect of any single occurrence, the Secured Parties
shall review with the Company, the Company’s business proposal with respect
to the application of the Net Proceeds thereof held by the Collateral Agent,
which proposal the Company shall submit to the Secured Parties within thirty
(30) Business Days of the date of the occurrence of the Casualty, and give
due consideration to the merits and rationale of such proposal recognizing
the integrated nature of the Company’s facilities and operations. Within
twenty (20) Business Days of receipt of the Company’s proposal, the
Requisite Parties shall, following review thereof, determine (which
determination shall be reasonably made and not unduly delayed) whether such
Net Proceeds shall be applied as provided in such proposal. If the Company
shall not have received a reply from the Requisite Parties by the end of
such twenty (20) Business Day

36

 

period, the Company shall deliver a written notice to each of the
Secured Parties requesting a determination as to such proposal and shall
give the Requisite Parties an additional five (5) Business Days after the
delivery of such second notice to deliver a written acceptance or rejection
of such proposal. If the Requisite Parties fail to advise the Company in
writing of their determination with respect to such proposal as provided
herein prior to the end of such five (5) Business Day period, they shall be
deemed to have accepted such proposal. Upon actual or deemed acceptance of
such proposal, the Collateral Agent shall hold such Net Proceeds for
disbursement in accordance with Section 11.3 and the Insured shall
act diligently and in good faith to apply such Net Proceeds substantially as
provided in such proposal. If such proposal is not accepted, then the Net
Proceeds shall be applied as a Offered Repayment as set forth in Section
11.2 below.

                    (b) Notwithstanding anything contained herein, if any Default or Event of Default shall have
occurred and be continuing, any Net Proceeds of any such Casualty with respect to the Collateral,
together with any other amounts held by the Collateral Agent in respect of such Casualty, shall be
applied as an Offered Repayment as set forth in Section 11.2 below unless the Majority
Secured Parties and the Company agree otherwise. The Collateral Agent shall promptly and, in any
case, not more than five (5) Business Days after the receipt of any funds hereunder satisfactorily
identified to the Collateral Agent as amounts to be applied as an Offered Repayment, inform the
Obligors and the Secured Parties in writing of such receipt and the amount thereof.

               11.2 Offered Repayment. Any Net Proceeds to be applied as an Offered Repayment as
provided in Section 11.1(a)(ii) or Section 11.1(b) shall be offered Pro Rata to all
Secured Parties as a prepayment as provided below. Each such Offered Repayment shall be made in
writing as soon as practicable after each of the Obligors being informed, in writing, by the
Collateral Agent of their obligation to make such Offered Repayment but, in any case, not later
than ten (10) days thereafter. Each Offered Repayment shall specify the date on which the
prepayment provided therein is to be made (which shall be a Business Day and shall not be a date
more than thirty-five (35) days after the date of the delivery of such Offered Repayment), the
principal amount of the Secured Obligations of the recipient of such Offered Repayment then being
offered to be prepaid and the amount of accrued interest to be paid thereon. To accept or reject
any Offered Repayment under this Section 11.2, in whole or in part, any Secured Party shall
cause a written notice of such acceptance or rejection to be delivered to the Obligors not later
than fifteen (15) days after the date of receipt by such holder of such Offered Repayment, provided
that, if (a) the Obligors shall have not received a reply from a holder of such applicable Secured
Obligations by the end of such fifteen (15) day period or (b) any such holder shall have rejected
such Offered Repayment, the Obligors shall deliver a second written notice (which shall include a
description of whether other holders of such Secured Obligations have accepted or rejected such
Offered Repayment) in respect of the relevant Offered Repayment to each such holder described in
clause (a) or (b) above and shall give each such holder an additional ten (10) days after the
delivery of such second notice to deliver a written acceptance or rejection of such Offered
Repayment (it being understood that the failure by a holder to accept (in full or in part) such
Offered Repayment as provided herein prior to the end of the aforesaid ten (10) day period

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shall be deemed to constitute a rejection of said Offered Repayment, or, if so indicated as to
any Secured Party on Schedule 13.4 or in a written notice delivered to the Company by any
Secured Party within 60 days of the date hereof, an acceptance of such Offered Repayment). The
Obligors shall inform the Collateral Agent, in writing not less than five (5) Business Days prior
to any date fixed for the effecting of the payments contemplated by any accepted Offered Repayment
under this Section 11.2, of all amounts due in respect of each of such accepted Offered
Repayments, the payment date therefor, the recipients thereof, and the payment address and payment
method required in respect of each such recipient. Upon the receipt by the Collateral Agent of
written instructions from the Obligors (or the Requisite Secured Parties, in the event that the
Obligors fail to give such notice within a reasonable time) directing the Collateral Agent to
effect the payment in immediately available funds of accepted Offered Repayments from the Net
Proceeds then held by the Collateral Agent, as expressly provided in the immediately preceding
sentence, the Collateral Agent shall effect the payment of such accepted Offered Repayments as so
instructed. To the extent that any such Net Proceeds shall not have been utilized to pay or prepay
Secured Obligations as a result of one or more holders of Secured Obligations rejecting (in whole
or in part) or being deemed to have rejected their respective Offered Repayments, upon receipt of a
written demand from the Obligors (or the Requisite Parties, in the event that the Obligors fail to
give such notice within a reasonable time), the Collateral Agent shall pay such remaining Net
Proceeds, together with any interest accrued thereon, promptly to the Obligors. Each accepted
Offered Repayment pursuant to this Section 11.2 shall be made in accordance with (a)
Section 2.06(b) of the Bank Credit Agreement, (b) Section 4A(2) of the Note Agreement (with
respect to any prepayment of the Note Principal Obligations) but without payment of
Yield-Maintenance Amount, (c) Section 3.6 and Section 3.4(iii)(d) of the Trade
Agreement (with respect to any prepayment of the Trade Agreement Debt) but without payment of any
prepayment or breakage fees, and (d) any one or more similar provisions in the Additional Future
Debt Documents (with respect to any prepayments of Additional Future Debt), in each case, as
certified to the Collateral Agent by the Secured Party to whom such Offered Repayment is due. To
the extent any such sections of the Loan Documents referred to in this Section 11.2 contain
notice or other procedural provisions, such provisions are hereby seemed waived to permit
prepayments under this Section 11.2. Only upon the Collateral Agent effecting the payment
in full of all of the amounts owing in respect of the applicable accepted Offered Repayments under
this Section 11.2 will the Obligors be deemed to have discharged the payment obligations
they have under this Section 11.2 with respect to such accepted Offered Repayments. The
Obligors agree that they will instruct such Collateral Agent to effect the payment of all related
Offered Repayments to all applicable Secured Parties simultaneously. Notwithstanding the
foregoing, if, to the extent required by the operation of any provision of any Credit Documents (it
being understood that the Loan Documents outstanding on the date hereof contain no such provision),
the Obligors are prohibited from making any Offered Repayment under such Credit Document, such
Offered Repayment shall be deemed to have been rejected by the each Secured Party who is a party to
the Credit Document containing such prohibition.

               11.3 Remnant Insurance Proceeds. With respect to any proposal accepted or deemed
accepted in accordance with Section 11.1(a)(ii) whereby the Insured is entitled to be paid
and use such Net Proceeds, such Net Proceeds shall be held by the Collateral Agent for distribution
in accordance with this Section 11.3. Upon receipt of a written demand from the Insured
and a certificate certifying that no Default or Event of Default has occurred and is

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continuing, the Collateral Agent shall promptly pay any Net Proceeds in immediately available
funds to the Insured to pay the costs of implementing the Company’s proposal in accordance with
Section 11.1(a)(ii). Should the Net Proceeds, if any, be insufficient to pay the entire
cost of the work outlined in such proposal, the Insured shall pay the deficiency or the entire cost
as the case may be. On the completion of all work and payment in full therefor and upon receipt by
the Collateral Agent of evidence to its satisfaction that such work has been completed and paid for
in full and that any property purchased, repaired, reconstructed and restored in the course of such
work is subject to the applicable Liens under the Security Documents (subject to any Permitted
First Priority Liens), any Net Proceeds not yet disbursed to the Insured as above provided and in
the possession or under the control of the Collateral Agent or the Secured Parties shall be
remitted to the Insured. Notwithstanding anything in this Section 11.3 to the contrary, if
no Default or Event of Default shall have occurred and be continuing, to the extent that such Net
Proceeds shall not have been utilized to pay or prepay the applicable Secured Obligations as
provided herein, the Insured may, in its discretion, elect not to implement its proposal in
connection with such Net Proceeds and, in such event, upon notice thereof to the Secured Parties
and the Collateral Agent, shall pay any amounts they are entitled to receive under this Section
11.3 to the Secured Parties as an Offered Repayment of the Secured Obligations as provided in
Section 11.2. The Insured will be deemed to have so elected if it shall not have commenced
implementation of such proposal within sixty (60) days of such Net Proceeds having become available
to it for such purposes.

               11.4 Notice of Casualty; Adjusting Loss. In the event all or any part of a
Significant Real Estate Interest shall suffer a Casualty, the Obligors will promptly give written
notice thereof to the insurance carrier and the Collateral Agent, and shall promptly provide to the
Collateral Agent such reasonable information concerning such Casualty as the Collateral Agent may
request. So long as no Default or Event of Default shall then exist, the Obligors shall be
authorized to make proof of loss and to negotiate, adjust, compromise and settle all insurance
claims and demands with respect to any such Casualty; provided, however, that the
Obligors may not adjust any claim for any Casualty which is estimated by the Collateral Agent in
good faith to exceed $5,000,000 unless the Collateral Agent at the Collateral Agent’s request,
acting at the direction of the Requisite Parties, shall have joined in such adjustment without
undue delay. If (a) there has been no adjustment of any such Casualty within six (6) months from
the date of occurrence thereof as a result of the failure of any Obligor to diligently prosecute
the applicable insurance claim or (b) if a Default or an Event of Default has occurred and is
continuing, the Collateral Agent, acting at the direction of the Requisite Parties, shall be
authorized, but shall not be obligated, to make such proof of loss with respect to any such
Casualty and to negotiate, adjust, compromise or settle all insurance claims and demands in respect
thereof and prosecute any action arising in connection therewith. In connection therewith, the
Obligors do hereby irrevocably authorize, empower and appoint the Collateral Agent as
attorneys-in-fact for the Obligors (which appointment is coupled with an interest) to do any and
all of the foregoing in the name and on behalf of the Obligors. The Requisite Parties agree to act
in good faith without undue delay in issuing any such written instruction and approving any such
adjustment.

               11.5 Reimbursement of Collateral Agent’s Expenses. The Obligors shall promptly
reimburse the Collateral Agent upon demand for all of the Collateral Agent’s reasonable
out-of-pocket expenses (including reasonable attorney’s fees) incurred in performing its duties
under this Section 11. To the extent the Collateral Agent has not been so reimbursed

39

 

by the Obligors (or arrangements therefor made to the satisfaction of the Collateral Agent),
any disbursement to be made by the Collateral Agent pursuant to this Section 11 shall be
net of all of the Collateral Agent’s reasonable out-of-pocket expenses (including reasonable
attorney’s fees) incurred in performing its duties under this Section 11.

          12. PROCEEDS FROM SALE OF ASSETS.

               12.1 General. Notwithstanding anything in this Section 12 to the contrary,
any Obligor shall be entitled and permitted to undertake any Asset Disposition in accordance with
the terms and conditions of all of the Loan Documents. If any Obligor intends to undertake an
Asset Disposition and if all of the Loan Documents permit the Obligor to use the proceeds of such
Asset Disposition for any purpose other than the repayment or prepayment of any Secured Obligation,
then such Obligor shall include in its Asset Disposition Certificate required to be delivered to
the Collateral Agent and the Secured Parties in accordance with Section 13.6: (i) the
purpose for which the Obligor intends to use the proceeds, (ii) the specific provisions of any
covenant under any of the Loan Documents which restrict transfer of assets and which permit such
Asset Disposition and (iii) a statement that the proceeds will be used for such stated purpose.

               12.2 Net Proceeds from an Asset Disposition. To the extent any Obligor is required
or is permitted and elects to prepay the Secured Obligations with Net Proceeds from any Asset
Disposition, such Net Proceeds shall be paid in immediately available funds to the Collateral
Agent. The Collateral Agent shall promptly and, in any case, not more than five (5) Business Days
after the receipt of any such Net Proceeds satisfactorily identified to the Collateral Agent as Net
Proceeds of an Asset Disposition, inform the Obligors and the Secured Parties in writing of such
receipt and the amount thereof. All Net Proceeds so paid to the Collateral Agent from such Asset
Disposition shall be applied as an Offered Repayment in accordance with the requirements of
Section 12.3.

               12.3 Offered Repayment. With respect to the Net Proceeds received by the Collateral
Agent as a result of any Asset Disposition, the Obligors shall, subject to Section 12.4
below, extend an Offered Repayment Pro Rata to each of the holders of Secured Obligations if such
Net Proceeds arise out of the sale, transfer of other disposition of any Collateral. Each such
Offered Repayment shall be made in writing as soon as practical after the Obligors being informed,
in writing, by the Collateral Agent of its receipt of any such Net Proceeds but, in any case, not
later than ten (10) days thereafter. Each Offered Repayment shall specify the date on which the
prepayment provided therein is to be made (which shall be a Business Day and shall not be a date
more than twenty-five (25) days after the date of the delivery of such Offered Repayment), the
principal amount of the applicable Secured Obligations of the recipient of such Offered Repayment
then being offered to be prepaid, the amount of accrued interest to be paid thereon and the
estimated Yield-Maintenance Amount due in respect of such prepayment as provided under the terms of
the Note Documents. To accept or reject any Offered Repayment under this Section 12.3, in
whole or in part, any Secured Party shall cause a written notice of such acceptance or rejection to
be delivered to the Obligors not later than fifteen (15) days after the date of receipt by such
holder of such Offered Repayment (it being understood that the failure by a holder to accept in
full or in part such Offered Repayment as provided herein prior to the end of such fifteen (15) day
period shall be deemed to constitute a rejection of said Offered

40

 

Repayment, or, if so indicated as to any Secured Party on Schedule 13.4 or in a
written notice delivered to the Company by any Secured Party within 60 days of the date hereof, an
acceptance of such Offered Repayment). The Obligors shall inform the Collateral Agent, in writing
not less than five (5) Business Days prior to any date fixed for the effecting of the payments
contemplated by any accepted Offered Repayment under this Section 12.3, of all amounts due
in respect of each of such accepted Offered Repayments, the payment date therefor, the recipients
thereof, and the payment address and payment method required in respect of each such recipient.
Upon the receipt by the Collateral Agent of written instructions from each of the Obligors (or the
Requisite Parties in the event that the Obligors fail to give such notice within a reasonable time)
directing the Collateral Agent to effect the payment in immediately available funds of accepted
Offered Repayments from the Net Proceeds then held by the Collateral Agent, as expressly provided
in the immediately preceding sentence, the Collateral Agent shall effect the payment of such
accepted Offered Repayments as so instructed. To the extent that any such Net Proceeds shall not
have been utilized to pay or prepay the applicable Secured Obligations as a result of one or more
holders of such Secured Obligations rejecting (in whole or in part) or being deemed to have
rejected their respective Offered Repayments in respect of such Net Proceeds and upon receipt of a
written demand from the Obligors (or the Requisite Parties in the event that the Obligors fail to
give such notice within a reasonable time), the Collateral Agent shall pay such Net Proceeds
promptly to the Obligors. Each accepted Offered Repayment pursuant to this Section 12.3
shall be made in accordance with (a) Section 2.06(b) of the Bank Credit Agreement, (b) Section
4A(2) of the Note Agreement (with respect to any prepayment of the Note Principal Obligations)
but without payment of Yield-Maintenance Amount, (c) Section 3.6 and Section
3.4(iii)(d) of the Trade Agreement (with respect to any prepayment of the Trade Agreement
Debt), and (c) any one or more similar provisions in the Additional Future Debt Documents (with
respect to any prepayments of Additional Future Debt)), in each case, as certified to the
Collateral Agent by the Secured Party to whom such payment is due. To the extent any such sections
referred to in this Section 12.3 contain notice or other procedural provisions such
provisions are hereby deemed waived to permit prepayments under this Section 12.3. Only
upon the Collateral Agent’s effecting of the payment in full of all of the amounts owing in respect
of the applicable accepted Offered Repayments under this Section 12.3 will the Obligors be
deemed to have discharged the payment obligations it has under this Section 12.3 with
respect to such accepted Offered Repayments. The Obligors agree that they will instruct the
Collateral Agent to effect the payment of all related Offered Repayments to all applicable Secured
Parties simultaneously. Notwithstanding the foregoing, if, to the extent required by the operation
of any provision of any Loan Documents (it being understood that the Loan Documents outstanding on
the date hereof have no such provision), the Obligors are prohibited from making any Offered
Repayment under such Loan Document, such Offered Repayment shall be deemed to have been rejected by
the Secured Party whose Loan Document contained the prohibition. Any amounts held by the
Collateral Agent after giving effect to all such rejected Offered Repayments shall be released to
the Obligors upon receipt of a certificate of a Senior Officer delivered to the Collateral Agent and
each of the Secured Parties which states that (i) no Default or
Event of Default then exists and
(ii) such amounts so paid to the Obligors will be used to acquire productive assets within 180 days
of their receipt of such funds or applied to the prepayment of Secured Obligations within five (5)
Business Days of receipt of such funds by the Obligors.

41

 

          12.4 Collateral Agent Expenses. The Obligors shall promptly reimburse the
Collateral Agent upon demand for all of the Collateral Agent’s reasonable out-of-pocket expenses
(including reasonable attorney’s fees) incurred in performing its duties under this Section
12. To the extent the Collateral Agent has not been so reimbursed by the Obligors (or
arrangements therefor made to the satisfaction of the Collateral Agent), any disbursement to be
made by the Collateral Agent pursuant to this Section 12 shall be net of all of the
Collateral Agent’s reasonable out-of-pocket expenses (including reasonable attorney’s fees)
incurred in performing its duties under this Section 12.

     13. MISCELLANEOUS.

          13.1 Further Assurances, Etc. U.S. Agent, each Noteholder, Northern and each holder
of Additional Future Debt and, by countersigning this Agreement, the Company and each Guarantor,
agrees to execute and deliver such other documents and instruments, in form and substance
reasonably satisfactory to the Collateral Agent (upon instructions from the Requisite Parties), and
shall take such other action, in each case as the Collateral Agent (upon instructions from the
Requisite Parties) may reasonably request (at the sole cost and expense of the Company which, by
countersigning this Agreement, agrees to pay such costs and expenses), to effectuate and carry out
the provisions of this Agreement including, without limitation, by recording or filing in such
places as the requesting party may reasonably deem desirable, this Agreement or such other
documents or instruments.

          13.2 No Individual Action; Marshaling; Etc. No holder of any Secured Obligations may
require the Collateral Agent to take or refrain from taking any action hereunder or under any of
the Security Documents or with respect to any of the Collateral except as and to the extent
expressly set forth in this Agreement. The Collateral Agent shall have no duty to, and the Company
and each Guarantor hereby waives any and all right to require the Collateral Agent to, marshal any
assets or otherwise to take any actions with respect to marshaling.

          13.3 Successors and Assigns.

               (a) This Agreement shall be binding on and inure to the benefit of the Collateral Agent, U.S.
Agent, each of the Noteholders, Northern and each of the holders of Additional Future Debt who
shall have executed and delivered a Joinder Agreement and their respective successors and assigns
and shall be binding on the Company and each Guarantor and their respective successors and
permitted assigns. Each of the Noteholders, U.S. Agent, Northern and each holder of Additional
Future Debt agrees that the provisions of this Agreement apply regardless of any sale, transfer,
pledge, assignment, hypothecation or other disposition by such Noteholder, U.S. Agent, U.S.
Lenders, Northern or such holder of Additional Future Debt of any Note or of any instrument or
right evidencing Bank Credit Agreement Debt, Note Debt, Trade Agreement Debt or Additional Future
Debt to any Person. Each Secured Party agrees that it shall not sell, transfer, assign or
otherwise dispose of any interest in any Secured Obligation unless the buyer, transferee or
assignee assumes in writing the obligations of such Secured Party under this Agreement;
provided, however, that it is acknowledged and agreed that (i) any assignment by
any U.S. Lender or any assignee thereof of such U.S. Lender’s or assignee’s rights and interest in
any Bank Credit Agreement Debt or by any Noteholder or any assignee thereof of such Noteholder’s or
assignee’s rights and interests in any Note Debt, or (ii) the sale

42

 

by any U.S. Lender of a participation in any Bank Credit Agreement Debt or by any Noteholder
in any Note Debt shall not require any such assignee or purchaser to assume in writing any
obligations under this Agreement and any such assignee or purchaser shall not be deemed a holder of
Additional Future Debt by reason of such assignment or sale, but shall be subject to the terms of
this Agreement without any further act on the part of such assignee or participant and without the
need of any such assignee or participant to sign a Joinder Agreement; provided
further, however, that the foregoing shall not prohibit U.S. Agent, U.S. Lenders,
any Noteholder, Northern or any holder of Additional Future Debt from pledging or otherwise
granting a security interest in any Secured Obligation so long as the pledgee or other secured
party, as a condition to its retaining or further transferring such Secured Obligation by way of
enforcement of such pledge or other security interest, assumes or causes its transferee to assume
in writing the obligations of such Noteholder, U.S. Agent, U.S. Lenders, Northern or such holder of
Additional Future Debt under this Agreement.

               (b) No Secured Party may sell any Secured Obligation or any interest therein to any Affiliate
of the Company (other than a sale which constitutes a payment under a Guaranty after an Event of
Default), or accept any payment of a Secured Obligation from an Affiliate of the Company (other
than payments under a Guaranty after an Event of Default), without the consent of the Majority
Secured Parties.

          13.4 Notices. All notices and other communications made or required to be given
pursuant to this Agreement or the Security Documents shall be in writing and shall be delivered in
hand, mailed by United States registered or certified first class mail, postage prepaid, sent by
overnight courier or sent by telecopy, confirmed by delivery via courier or postal service,
addressed as set forth on Schedule 13.4 hereto or to such other address or addresses as any
such party shall specify by notice given to the other parties. Any such notice and other
communications shall be deemed to have been duly given or made and to have become effective (i) if
delivered by hand, overnight courier or facsimile, at the time of the receipt thereof, and (ii) if
sent by registered or certified first class mail postage prepaid, on the fourth (4th) Business Day
following the mailing thereof; provided, however, that a Notice of Actionable
Default or any other notice to be delivered to the Collateral Agent pursuant to the terms of this
Agreement shall not be deemed to have been received by a Responsible Officer of the Collateral
Agent until the Collateral Agent actually receives such notice.

          13.5 Termination; Full Release of Collateral.

               (a) The Liens created by the Security Documents, including the Liens of the Collateral Agent,
shall terminate and all right, title and interest in the Collateral shall revert to the Company and
its successors and assigns upon payment in full in cash of all amounts owed to the Collateral Agent
pursuant to Section 5.9 and the satisfaction of each of the following four conditions:

     (i) receipt by the Collateral Agent from Northern of notice stating
that either:

43

 

     (A) the Trade Agreement Debt has been paid in full, in cash, and
all commitments under the Trade Agreement have terminated, been
canceled or been reduced to zero; or

     (B) the Company’s unsecured debt obligations are Investment
Grade; and

     (ii) receipt by the Collateral Agent from each of the Noteholders of
notice that either:

     (A) the Note Debt held by such Noteholders has been paid in
full, in cash, in accordance with the Note Agreements; or

     (B) the Company’s unsecured debt obligations are Investment
Grade; and

     (iii) receipt by the Collateral Agent from U.S. Agent of notice stating
that:

     (A) Bank Credit Agreement Debt due to it has been paid in full,
in cash, and it has no Undrawn LC Exposure; or

     (B) the Company’s unsecured debt obligations are Investment
Grade; and

     (iv) receipt by the Collateral Agent from each of the holders of
Additional Future Debt, if any, that either:

     (A) the Additional Future Debt held by such holder or holders
has been paid in full, in cash, in accordance with the Additional
Future Debt Documents; or

     (B) the Company’s unsecured debt obligations are Investment
Grade; and

          The Secured Parties agree to provide the notices contemplated by Section 13.5(a)(i),
Section 13.5(a)(ii), Section 13.5(a)(iii) and Section 13.5(a)(iv), under
the circumstances provided in such Sections for such notices to be capable of being given, promptly
upon the Company’s request.

               (b) Upon the termination of the Collateral Agent’s Liens and the release of the Collateral in
accordance with Section 13.5(a), the Collateral Agent will promptly, at the Company’s
written request and expense, (i) execute and deliver to the Company such documents as the Company
shall reasonably request and to provide evidence of the termination of such security interest, or
the release of the Collateral and (ii) deliver or cause to be delivered to the Company all property
of the Company constituting Collateral then held by Collateral Agent or any agent thereof.

44

 

               (c) This Agreement shall terminate automatically when the Liens granted under the Security
Documents have terminated and the Collateral has been released to the Company by the Collateral
Agent as provided in the foregoing provisions of this Section 13.5.

               (d) If, at any time, any payment made or value received with respect to any Secured Obligation
must be returned by the Secured Party receiving the same upon the insolvency, bankruptcy or
reorganization of the Company or any Guarantor, or otherwise, with the effect as though such
payment had not been made or value received, the Liens in the Collateral created by the Security
Documents in favor of the Collateral Agent and the rights of the Collateral Agent to act as agent
hereunder and to receive amounts pursuant to this Agreement shall be reinstated to the extent those
rights had previously been terminated. In such event each Secured Party agrees that it will pay to
the other Secured Parties such amounts so that, after giving effect to the payments hereunder by
all Secured Parties, the amounts received by all Secured Parties are not in excess of the amounts
to be paid to them hereunder as though any payment so returned had not been made.

               (e) Notwithstanding the foregoing, Section 5.9 and Section 5.10 of this
Agreement shall survive, and remain operative and in full force and effect, regardless of the
termination of this Agreement.

          13.6 Partial Release of Collateral.

               (a) In connection with any Obligor’s consummation of an Asset Disposition in compliance with
the provisions of this Agreement, the Liens of the Collateral Agent in the Asset Disposition
Collateral in respect of such Asset Disposition shall be released and all right, title and interest
therein shall revert to such Obligor and its successors and assigns upon satisfaction of the
following conditions:

     (i) if such Asset Disposition is not an Approved Asset Disposition and
if the net book value of such Asset Disposition Collateral, together with
the aggregate net book value of all other Asset Disposition Collateral which
was the subject of an Asset Disposition (other than an Approved Asset
Disposition) in the then current calendar year, is $5,000,000 or less, the
Collateral Agent shall, at such Obligor’s request and expense, release all
of its Liens with respect to such Asset Disposition Collateral as soon as
reasonably possible (but no later than the consummation of such Asset
Disposition) provided that the Company shall have delivered to the
Collateral Agent and to each holder of Secured Obligations an Asset
Disposition Certificate in respect of such Asset Disposition at least twenty
(20) days prior to the consummation of such Asset Disposition; or

     (ii) if such Asset Disposition is not an Approved Asset Disposition and
if the net book value of such Asset Disposition Collateral, together with
the aggregate net book value of all other Asset Disposition Collateral which
was the subject of an Asset Disposition (other than an

45

 

Approved Asset Disposition) in the then current calendar year, is more
than $5,000,000, the Collateral Agent shall, at the Company’s request and
expense, release all of its Liens with respect to such Asset Disposition
Collateral no later than the consummation of such Asset Disposition;
provided that (a) the Company shall have delivered to the Collateral Agent
and to each holder of Secured Obligations an Asset Disposition Certificate
in respect of such Asset Disposition at least thirty (30) days prior to the
proposed consummation date of such Asset Disposition, and (b) the Requisite
Parties do not instruct the Collateral Agent to not release the Asset
Disposition Collateral within such thirty (30) day period; or

     (iii) if such Asset Disposition is an Approved Asset Disposition
approved by the Requisite Parties as provided in the definition thereof,
then the Collateral Agent shall, at the Company’s request and expense,
release all of its Liens with respect to the Asset Disposition Collateral
which is the subject of such Approved Asset Disposition no later than the
consummation of such Asset Disposition.

          In each such instance, upon satisfaction of the foregoing conditions, the Collateral Agent
will promptly, at the Company’s written request and expense; (i) execute and deliver to the Company
such documents as the Company shall reasonably request and provide to evidence the release of its
Lien in such Asset Disposition Collateral and (ii) deliver or cause to be delivered to the
Obligors, all Property of the Obligors constituting such Asset Disposition Collateral then held by
the Collateral Agent or any agent thereof so long as, in each such case, the Collateral Agent
obtains a perfected security interest in Collateral received as proceeds of such Asset Disposition,
and it shall have received an opinion of nationally recognized independent outside counsel to such
effect if such Collateral is real estate or property in which a security interest is perfected by
means other than the filing of a financing statement.

               (b) Whether or not instructed by the Secured Parties, the Collateral Agent may release any
Collateral and may provide any release, termination statement or instrument of subordination
required by order of a court of competent jurisdiction.

               (c) To the extent that the Loan Documents of any party permit any Disposition to which such
party’s consent is required pursuant to this Section 13.6, such party agrees to provide
that consent promptly following a written request by the Company. But nothing in this Section
13.6 shall (i) be deemed to imply any waiver of any restriction on Dispositions under the Bank
Credit Agreement Documents, the Note Documents, the Trade Agreement, the Additional Debt Documents
or any other Loan Document, or (ii) without the prior written consent of the Requisite Parties,
authorize the Collateral Agent in any bankruptcy case to enter into any agreement for, or give any
authorization or consent with respect to, the post-petition usage of Collateral.

     Notwithstanding anything to the contrary in this Agreement (including Section 14.11)
or in any Security Document, nothing in this Agreement or in any Security Document shall or shall
be construed as waiving, modifying or otherwise altering any obligation of any Secured Party to

46

 

release any Collateral from the Lien of any Security Document upon the terms and conditions
contained in any Loan Document.

          13.7 Applicable Law. THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH AND
GOVERNED BY THE LAWS OF THE STATE OF ILLINOIS (WITHOUT REFERENCE TO ITS CONFLICT OF LAWS
PRINCIPLES).

          13.8 Severability. In case any one or more of the provisions contained in this
Agreement should be invalid, illegal or unenforceable in any respect, the validity, legality and
enforceability of the remaining provisions contained herein shall not in any way be affected or
impaired thereby. The parties shall endeavor in good faith negotiations to replace the invalid,
illegal or unenforceable provisions with valid provisions the economic effect of which comes as
close as possible to that of the invalid, illegal or unenforceable provision.

          13.9 Counterparts. This Agreement may be executed in two or more counterparts, each
of which shall constitute an original, but all of which, when taken together, shall constitute but
one instrument.

          13.10 Section Headings. The Section headings used herein are for convenience of
reference only and are not to affect the construction of or be taken into consideration in
interpreting this Agreement.

          13.11 Complete Agreement. This Agreement constitutes the entire agreement among the
parties hereto with respect to the subject matter hereof and supersedes and all other prior
representations, negotiations, writings, memoranda and agreements except as provided below. Except
as expressly provided herein, to the extent any provision of this Agreement supplements, modifies
or conflicts with any provision of the Trade Agreement, the Bank Credit Agreement, the Note
Agreement or any other Credit Document, the provisions of this Agreement shall be controlling.
Nothing in this Agreement, expressed or implied, is intended to confer upon any person other than
the parties hereto any rights or remedies under or by reason of this Agreement.

          13.12 Additional Future Debt. At the request of the Company, holders of additional
unsecured indebtedness of the Company incurred in compliance with the terms of the Loan Documents
may from time to time after the date of this Agreement become parties hereto by executing and
delivering a Joinder Agreement to this Agreement in substantially the form attached as Exhibit
A hereto in accordance with the requirements of this Section 13.12. Each of the
undersigned agrees that, effective from and after the date of the execution and delivery by the
Company, each Guarantor, the Collateral Agent, each existing Secured Party and any holder of such
additional indebtedness of a Joinder Agreement, such holder shall be, and shall be deemed for all
purposes to be, a party hereto with the same force and effect, and subject to the same agreements,
representations, covenants, guarantees, indemnities, liabilities and obligations, as if such holder
were, effective as of such date, an original signatory to this Agreement.

[SIGNATURES FOLLOW ON NEXT PAGE]

47

 

     IN WITNESS WHEREOF, the Collateral Agent Bank, the Collateral Agent, the Noteholders, U.S.
Agent, Northern, the Company and each of the Guarantors have caused this Collateral Agency and
Intercreditor Agreement to be duly executed by their duly authorized officers, all as of the day
and year first above written.

	 	 	 	 	 
	 	BANK OF AMERICA, N.A., in its

individual capacity and in its
capacity as 
Collateral Agent, As
Applicable

 	 
	 	By:  	/s/ David A. Johanson
 	 
	 	 	Name:  	David A. Johanson 	 
	 	 	Title:  	Vice President 	 
	 
	 	BANK OF AMERICA, N.A., as U.S. Agent

for U.S. Lenders

 	 
	 	By:  	/s/ David A. Johanson
 	 
	 	 	Name:  	David A. Johanson 	 
	 	 	Title:  	Vice President 	 
	 
	 	THE NORTHERN TRUST COMPANY

 	 
	 	By:  	/s/ Peter J. Hallan
 	 
	 	 	Name:  	Peter J. Hallen 	 
	 	 	Title:  	Vice President 	 
	 
	 	THE PRUDENTIAL INSURANCE 
COMPANY OF
AMERICA

 	 
	 	By:  	/s/ G. Anthony Coletta
 	 
	 	 	Name:  	G. Anthony Coletta 	 
	 	 	Title:  	Vice President 	 
	 
	 	PRUDENTIAL RETIREMENT 
INSURANCE AND
ANNUITY COMPANY

 	 
	 	By:  	/s/ G. Anthony Coletta
 	 
	 	 	Name:  	G. Anthony Coletta 	 
	 	 	Title:  	Vice President 	 
	 

SIGNATURE PAGE TO AMENDED AND RESTATED COLLATERAL AGENCY AND INTERCREDITOR AGREEMENT

 

 

	 	 	 	 	 
	ACCEPTED AND AGREED TO:	 	 
	 
	 	 	 	 
	A. M. CASTLE & CO.	 	 
	 
	 	 	 	 
	By:

	 	/s/ Michael H. Goldberg	 	 
	 

	 	 	 	 
	 

	 	Name: Michael H. Goldberg	 	 
	 

	 	Title: President & CEO	 	 
	 
	 	 	 	 
	DATAMET, INC.	 	 
	 
	 	 	 	 
	By:

	 	/s/ Jerry M. Aufox	 	 
	 

	 	 	 	 
	 

	 	Name: Jerry M. Aufox	 	 
	 

	 	Title: Secretary	 	 
	 
	 	 	 	 
	KEYSTONE TUBE COMPANY, LLC	 	 
	 
	 	 	 	 
	By:

	 	/s/ Jerry M. Aufox	 	 
	 

	 	 	 	 
	 

	 	Name: Jerry M. Aufox	 	 
	 

	 	Title: Secretary	 	 
	 
	 	 	 	 
	TOTAL PLASTICS, INC.	 	 
	 
	 	 	 	 
	By:

	 	/s/ Lawrence A. Boik	 	 
	 

	 	 	 	 
	 

	 	Name: Lawrence A. Boik	 	 
	 

	 	Title: Vice President	 	 
	 
	 	 	 	 
	PARAMONT MACHINE COMPANY, LLC	 	 
	 
	 	 	 	 
	By:

	 	/s/ Jerry M. Aufox	 	 
	 

	 	 	 	 
	 

	 	Name: Jerry M. Aufox	 	 
	 

	 	Title: Secretary	 	 

SIGNATURE PAGE TO AMENDED AND RESTATED COLLATERAL AGENCY AND INTERCREDITOR AGREEMENT

 

 

	 	 	 	 	 
	ADVANCED FABRICATING TECHNOLOGY, LLC	 	 
	 
	 	 	 	 
	By:

	 	/s/ Jerry M. Aufox	 	 
	 

	 	 	 	 
	 

	 	Name: Jerry M. Aufox	 	 
	 

	 	Title: Secretary	 	 

SIGNATURE PAGE TO AMENDED AND RESTATED COLLATERAL AGENCY AND INTERCREDITOR AGREEMENT

 

 

	 	 	 	 	 
	OLIVER STEEL PLATE CO.	 	 
	 
	 	 	 	 
	By:

	 	/s/ Jerry M. Aufox	 	 
	 

	 	 	 	 
	 

	 	Name: Jerry M. Aufox	 	 
	 

	 	Title: Secretary	 	 
	 
	 	 	 	 
	METAL MART, LLC	 	 
	 
	 	 	 	 
	By:

	 	/s/ Jerry M. Aufox	 	 
	 

	 	 	 	 
	 

	 	Name: Jerry M. Aufox	 	 
	 

	 	Title: Secretary	 	 
	 
	 	 	 	 
	TRANSTAR INTERMEDIATE HOLDINGS #2,
INC.	 	 
	 
	 	 	 	 
	By:

	 	/s/ Lawrence A. Boik	 	 
	 

	 	 	 	 
	 

	 	Name: Lawrence A. Boik	 	 
	 

	 	Title: Vice President	 	 
	 
	 	 	 	 
	TRANSTAR METALS HOLDINGS, INC.	 	 
	 
	 	 	 	 
	By:

	 	/s/ Michael H. Goldberg	 	 
	 

	 	 	 	 
	 

	 	Name: Michael H. Goldberg	 	 
	 

	 	Title: Vice President	 	 
	 
	 	 	 	 
	TRANSTAR INVENTORY CORP.	 	 
	 
	 	 	 	 
	By:

	 	/s/ Lawrence A. Boik	 	 
	 

	 	 	 	 
	 

	 	Name: Lawrence A. Boik	 	 
	 

	 	Title: Vice President	 	 
	 
	 	 	 	 
	TRANSTAR METALS CORP.	 	 
	 
	 	 	 	 
	By:

	 	/s/ Lawrence A. Boik	 	 
	 

	 	 	 	 
	 

	 	Name: Lawrence A. Boik	 	 
	 

	 	Title: Vice President	 	 

SIGNATURE PAGE TO AMENDED AND RESTATED COLLATERAL AGENCY AND INTERCREDITOR AGREEMENT

 

 

	 	 	 	 	 
	TRANSTAR MARINE CORP.	 	 
	 
	 	 	 	 
	By:

	 	/s/ Lawrence A. Boik	 	 
	 

	 	 	 	 
	 

	 	Name: Lawrence A. Boik	 	 
	 

	 	Title: Vice President	 	 

SIGNATURE PAGE TO AMENDED AND RESTATED COLLATERAL AGENCY AND INTERCREDITOR AGREEMENT

 

 

SCHEDULE 1.1

EXISTING FIRST PRIORITY LIENS

None.

SCHED 1.1-1

 

 

SCHEDULE 13.4

(ADDRESSES)

The Prudential Insurance Company

of America

Two Prudential Plaza, Suite 5600

180 North Stetson Avenue

Chicago, IL 60601

Attn: Wiley S. Adams

Fax: (312) 540-4222

Prudential Retirement Insurance

and Annuity Company

Two Prudential Plaza, Suite 5600

180 North Stetson Avenue

Chicago, IL 60601

Attn: Wiley S. Adams

Fax: (312) 540-4222

Bank of America, N.A.,

as U.S. Agent

231 South LaSalle Street

Mail Code: IL1-231-06-40

Chicago, IL 60697

Attn: Craig W. McGuire

Fax: (312) 828-1974

The Northern Trust Company

50 South LaSalle Street

Chicago, IL 60675

Attn: Greta Satek, Vice President

Fax: (312) 630-6105

Bank of America, N.A.,

as Collateral Agent

231 South LaSalle Street

Mail Code: IL1-231-08-30

Chicago, IL 60697

Attn: Linda K. Lov

Fax: (877) 206-1766

SCHED
13.4-1

 

 

EXHIBIT A

[FORM OF JOINDER AGREEMENT]

JOINDER
AGREEMENT NO. ___ TO

AMENDED AND RESTATED

COLLATERAL AGENCY AND INTERCREDITOR AGREEMENT

Re: A. M. CASTLE & CO.

     This Joinder Agreement is made as of ___, by and among (a) the Collateral Agent,
(b) the existing Secured Parties and (c) ___ (the “New Secured Party”).

     A. Reference is made to the Amended and Restated Collateral Agency and Intercreditor Agreement
dated as of September 5, 2006 (as such Agreement may be supplemented, amended, restated or
consolidated from time to time, the “Intercreditor Agreement”) by and among the Collateral Agent
and the Secured Parties (as defined therein), under which such Persons have set forth their rights
to the Collateral of the Company and certain of its Subsidiaries.

     B. Capitalized terms used but not otherwise defined in this Joinder Agreement have the
respective meanings given to such terms in the Intercreditor Agreement, including the definitions
of terms incorporated in the Intercreditor Agreement by reference to other agreements.

     C. The Intercreditor Agreement provides that additional Persons may from time to time after
the date of the Intercreditor Agreement become parties thereto by executing and delivering a
supplemental agreement to the Intercreditor Agreement in the form of this Joinder Agreement.

     D. On the date hereof [describe event creating Additional Future Debt].

     For valuable consideration, each of the undersigned severally (and not jointly, or jointly and
severally) agrees as follows:

          1. The New Secured Party has received a copy of, and has reviewed, the Intercreditor Agreement
in existence on the date of this Joinder Agreement and is executing and delivering this Joinder
Agreement pursuant to the terms of Intercreditor Agreement.

          2. The New Secured Party (a) has delivered to each of the Secured Parties and the Collateral
Agent a copy of all documents, instruments and agreements evidencing all indebtedness of the
Company or any Subsidiary in favor of the New Secured Party in existence on the date of this
Joinder Agreement and (b) is executing and delivering this Joinder Agreement pursuant to the terms
of the Intercreditor Agreement.

          3. Effective from and after the date this Joinder Agreement is executed and delivered by the
undersigned, (i) the New Secured Party is, and shall be deemed for all purposes

A-1

 

to be, a party to the Intercreditor Agreement as a holder of Additional Future Debt with the
same force and effect, and subject to the same agreements, representations, covenants, guarantees,
indemnities, liabilities and obligations, as if such New Secured Party was, effective as of the
date of this Joinder Agreement, a party to the Intercreditor Agreement as an original signatory
thereto, (ii) the [describe Additional Future Debt] shall constitute Additional Future Debt, and
(iii) the New Secured Party hereby confirms its appointment of the Collateral Agent Bank to act as
collateral agent pursuant to the Intercreditor Agreement and the Security Documents in accordance
with Section 5.1 of the Intercreditor Agreement.

          4. This Joinder Agreement may be executed in counterparts. Each executed counterpart shall be
deemed to be an original and all counterparts taken together shall constitute one and the same
Joinder Agreement. Delivery of an executed signature page to this Joinder Agreement by any party
hereto by facsimile transmission shall be as effective as delivery of a manually executed copy of
this Joinder Agreement by such Person.

          5. This Joinder Agreement is a contract made under, and will for all purposes be governed by
and interpreted and enforced according to, the internal laws of the State of Illinois excluding any
conflict of laws rule or principle which might refer these matters to the laws of another
jurisdiction.

          6. This Joinder Agreement and the Intercreditor Agreement shall be binding upon each New
Secured Party and their respective successors and assigns.

     IN WITNESS OF WHICH this Joinder Agreement has been duly executed and delivered by each of the
undersigned as of the date indicated on the first page of this Joinder Agreement.

	 	 	 	 	 
	 	 	[HOLDER OF ADDITIONAL DEBT]
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Name:
	 

	 	 	 	Title:

	 	 	 	 	 	 	 
	BANK OF AMERICA, N.A., in its
 individual
capacity and in its capacity as 
Collateral
Agent, As Applicable	 	 
	 
	 	 	 	 	 	 
	By:
	 	 	 	 	 	 
	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 

A-2

 

	 	 	 	 	 	 	 
	BANK OF AMERICA, N.A., as U.S. Agent	 	 
	 
	 	 	 	 	 	 
	By:
	 	 	 	 	 	 
	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	THE NORTHERN TRUST COMPANY	 	 
	 
	 	 	 	 	 	 
	By:
	 	 	 	 	 	 
	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	THE PRUDENTIAL INSURANCE 

COMPANY OF AMERICA	 	 
	 
	 	 	 	 	 	 
	By:
	 	 	 	 	 	 
	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	PRUDENTIAL RETIREMENT 
INSURANCE AND ANNUITY
COMPANY	 	 
	 
	 	 	 	 	 	 
	By:
	 	 	 	 	 	 
	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	ACCEPTED AND AGREED TO:	 	 
	 
	 	 	 	 	 	 
	A. M. CASTLE & CO.	 	 
	 
	 	 	 	 	 	 
	By:
	 	 	 	 	 	 
	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 

A-3

 

	 	 	 	 	 	 	 
	DATAMET, INC.	 	 
	 
	 	 	 	 	 	 
	By:
	 	 	 	 	 	 
	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	KEYSTONE TUBE COMPANY, LLC	 	 
	 
	 	 	 	 	 	 
	By:
	 	 	 	 	 	 
	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	TOTAL PLASTICS, INC.	 	 
	 
	 	 	 	 	 	 
	By:
	 	 	 	 	 	 
	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	PARAMONT MACHINE COMPANY, LLC	 	 
	 
	 	 	 	 	 	 
	By:
	 	 	 	 	 	 
	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	ADVANCED FABRICATING TECHNOLOGY, LLC	 	 
	 
	 	 	 	 	 	 
	By:
	 	 	 	 	 	 
	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	OLIVER STEEL PLATE CO.	 	 
	 
	 	 	 	 	 	 
	By:
	 	 	 	 	 	 
	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 

A-4

 

	 	 	 	 	 	 	 
	METAL MART, LLC	 	 
	 
	 	 	 	 	 	 
	By:
	 	 	 	 	 	 
	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	TRANSTAR INTERMEDIATE HOLDINGS #2, INC.	 	 
	 
	 	 	 	 	 	 
	By:
	 	 	 	 	 	 
	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	TRANSTAR METALS HOLDINGS, INC.	 	 
	 
	 	 	 	 	 	 
	By:
	 	 	 	 	 	 
	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	TRANSTAR INVENTORY CORP.	 	 
	 
	 	 	 	 	 	 
	By:
	 	 	 	 	 	 
	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	TRANSTAR METALS CORP.	 	 
	 
	 	 	 	 	 	 
	By:
	 	 	 	 	 	 
	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	TRANSTAR MARINE CORP.	 	 
	 
	 	 	 	 	 	 
	By:
	 	 	 	 	 	 
	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 

A-5

 

EXHIBIT B

FORM OF PERFECTION CERTIFICATE

     In response to the queries set out in the attached questionnaire, the undersigned, the
Secretary of ___, a ___ corporation (the “Company”), hereby certifies, with
reference to a certain Amended and Restated Security Agreement dated as of September 5, 2006 (terms
defined in such Security Agreement having the same meanings herein as specified therein), between
the Company, Obligors and Bank of America, N.A. (the “Collateral Agent”), to the Collateral Agent
as follows:

	1.	 	Exact Legal Name
	 
	2.	 	Other Identifying Factors

	 	(a)	 	Mailing Address:
	 
	 	(b)	 	Place Of Business (If Different From Mailing Address) Or Chief Executive Office
	 
	 	(c)	 	Type of Organization

	 	 	 	 	 	 	 	 	 
	Type of	 	 	 	 	 	Organizational	 
	Organization	 	Jurisdiction	 	 	Identification #	 
	 
	 	 	 	 	 	 	 	 

	 	(d)	   Jurisdiction – see table above
	 
	 	(e)	  Organizational Identification Number – see table above

	3.	 	Other Names, Etc.

	 	(a)	 	Other Names (During The Past 5 Years):

	 	(i)	 	All Other Names Used by the Companies:

B-1

 

	 	(ii)	 	Names Relating To Any Other Business Or Organization To Which
The Company Became The Successor By Merger, Consolidation, Acquisition, Change
In Form, Nature Or Jurisdiction Of Organization Or Otherwise:

	 	(b)	 	See Schedule 3

	4.	 	Other Current Locations

	 	(a)	 	Address of Location of Books and Records

	 	 	 	 	 	 	 	 	 
	Address	 	County	 	 	State	 
	 
	 	 	 	 	 	 	 	 

	 	(b)	 	All Other Places of Business of the Company

	 	 	 	 	 	 	 	 	 
	Address	 	County	 	 	State	 
	 
	 	 	 	 	 	 	 	 

	 	(c)	 	Locations Where Any Of The Collateral (inventory or equipment) Is Located:

	 	 	 	 	 	 	 	 	 	 	 	 	 
	Name	 	Mailing Address	 	 	County	 	 	State	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 

	 	(d)	 	Persons Or Entities Which Have Possession Or Are Intended to Have Possession of
Collateral (instruments, chattel paper, inventory or equipment):

	 	(i)	 	See 4(c) above.

B-2

 

	5.	 	Prior Locations

	 	(a)	 	Locations Or Place Of Business During The Past 5 Years In A State In Which The
Company Previously Has Maintained A Location Or Place Of Business At Any Time During
The Past 4 Months:

	 	 	 	 	 	 	 	 	 
	Address	 	County	 	 	State	 
	 
	 	 	 	 	 	 	 	 

	 	(b)	 	Locations, Persons Or Entities With Which Any of the Collateral (instruments,
chattel paper, inventory or equipment) Previously Has Been Held At Any Time During the
Past 12 Months:

	6.	 	Fixtures

	 	(a)	   Leased locations.
	 
	 	(b)	   Owned locations.

	7.	 	Intellectual Property

	 	(a)	 	See Schedule 7.

	8.	 	Securities; Instruments

	 	(a)	 	See Schedule 8.

	9.	 	Motor Vehicles
	 
	10.	 	Other Titled Collateral
	 
	11.	 	Bank Accounts
	 
	12.	 	Unusual Transactions

B-3

 

	13.	 	Commercial Tort Claims
	 
	14.	 	File Search Reports

	 	(a)	 	Copies of searches to be provided as received. See Schedule 14(a) for a list of
all searches completed to date.
	 
	 	(b)	 	Copies of each financing statement or other filing identified in such file
search reports to be provided.

	15.	 	UCC Filings
	 
	16.	 	Termination Statements
	 
	17.	 	Schedule of Filing
	 
	18.	 	Filing Fees

     IN
WITNESS WHEREOF, I have hereunto signed this Perfection Certificate as of this ___ day of
___, ___.

	 	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Name:
	 

	 	 	 	Title:

B-4

 

EXHIBIT C

SECURITY DOCUMENT AMENDMENTS

	1.	 	Amended and Restated Security Agreement among the Collateral Agent, the Company
and the Guarantors

	2.	 	Amended and Restated Stock Pledge Agreement between the Collateral Agent and
the Company

	3.	 	Stock Pledge Agreement between the Collateral Agent and Transtar Intermediate
Holdings, Inc.

	4.	 	Stock Pledge Agreement between the Collateral Agent and Transtar Metals
Holdings, Inc.

	5.	 	Amended and Restated Trademark Collateral and Security Pledge Agreement among
the Collateral Agent, the Company and Total Plastics, Inc.

	6.	 	First Amendment to Mortgage, Security Agreement, Financing Statement and
Assignment of Rents and Leases with respect to the real property commonly known as 3400
North Wolf Road, Franklin Park, IL 60131

	7.	 	First Amendment to Mortgage, Security Agreement, Financing Statement and
Assignment of Rents and Leases with respect to the real property commonly known as 70
Quinsigamond Avenue, Worcester, MA 01610

	8.	 	First Amendment to Mortgage, Security Agreement, Financing Statement and
Assignment of Rents and Leases with respect to the real property commonly known as 1652
Gezon Parkway, Grand Rapids, MI 49509

	9.	 	First Amendment to Mortgage, Security Agreement, Financing Statement and
Assignment of Rents and Leases with respect to the real property commonly known as 3100
82nd Lane NE, Blaine, MN 55449

	10.	 	First Amendment to Deed of Trust, Security Agreement, Financing Statement, and
Assignment of Rents and Leases with respect to the real property commonly known as
11125 Metromont Parkway, Charlotte, NC 28269

	11.	 	First Amendment to Open-End Mortgage, Security Agreement, Financing Statement
and Assignment of Rents and Leases with respect to the real property commonly known as
26800 Miles Road, Bedford Heights, OH 44146

C-1

 

	12.	 	First Amendment to Open-End Mortgage, Security Agreement, Financing Statement
and Assignment of Rents and Leases with respect to the real property commonly known as
299 Canal Road, Fairless Hills, PA 19030

	13.	 	First Amendment to Deed of Trust, Security Agreement, Financing Statement, and
Assignment of Rents and Leases with respect to the real property commonly known as 2602
Pinewood Drive, Grand Prairie, TX 75051

	14.	 	First Amendment to Deed of Trust, Security Agreement, Financing Statement, and
Assignment of Rents and Leases with respect to the real property commonly known as 6501
Bingle Road, Houston, TX 77092

	15.	 	Environmental Indemnity Agreement among the Company, the Guarantors and the
Collateral Agent

	16.	 	UCC1 Financing Statements and UCC3 Financing Statement Amendments describing
the Collateral and designating Bank of America, N.A., as Collateral Agent as Secured
Party

C-2exv10w14

 

EXHIBIT 10.14

AMENDED AND RESTATED

SECURITY AGREEMENT

     AMENDED AND RESTATED SECURITY AGREEMENT, dated as of September 5, 2006, among A. M. Castle &
Co., a Maryland Corporation (the “Company”) and the entities set forth on Schedule A hereto
(collectively, the “Other Securing Parties”, and together with the Company, collectively, the
"Obligors, each individually, an “Obligor”) and Bank of America, N.A., as collateral agent
(hereinafter, in such capacity, the “Collateral Agent”) pursuant to, and for the benefit of the
Secured Parties (as defined herein) which are or may become parties to, an Amended and Restated
Collateral Agency and Intercreditor Agreement dated as of even date herewith (as amended and in
effect from time to time, the “Intercreditor Agreement”), among the Obligors, the Collateral Agent
and the Secured Parties.

     WHEREAS, the Company has previously entered into various financing arrangements with the
Secured Parties; and

     WHEREAS, the Company, certain of the other Obligors, U.S. Bank National Association and
certain of the Secured Parties were parties to a Collateral Agency and Intercreditor Agreement,
dated as of March 20, 2003 (the “Prior Collateral Agency and Intercreditor Agreement”), pursuant to
which U.S. Bank National Association served as collateral agent for the Secured Parties;

     WHEREAS, in connection with the Prior Collateral Agency and Intercreditor Agreement U.S. Bank
National Association the Company and certain of the Other Securing Parties entered into a Security
Agreement, dated as of March 20, 2003 (the “Prior Security Agreement”);

     WHEREAS, U.S. Bank National Association resigned as collateral agent under the Prior
Collateral Agency and Intercreditor Agreement and Bank of America, N.A. was appointed as successor
collateral agent;

     WHEREAS, the Prior Collateral Agency and Intercreditor Agreement has been amended and restated
pursuant to the Intercreditor Agreement and certain of the Other Securing Parties not previously
parties thereto became parties to the Intercreditor Agreement; and

     WHEREAS, each Obligor and the Collateral Agent wish to amend and restate the Prior Security
Agreement as provided herein;

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

     1. Definitions. All capitalized terms used herein without definitions and that are
defined in the Intercreditor Agreement shall have the respective meanings provided therefor in the
Intercreditor Agreement. The term “State”, as used herein, means the State of Illinois. Terms
used herein and not defined herein or in the Intercreditor Agreement that are defined in the
Uniform Commercial Code of the State and used herein shall have the same definitions herein as
specified therein from time to time. However, if a term is defined in Article 9 of the Uniform
Commercial Code of the State differently than in another Article of the Uniform

 

 

Commercial Code of the State, the term has the meaning specified in Article 9. As used in
this Agreement, the following terms have the respective meanings set forth below or provided for in
the section or other part of this Agreement referred to immediately following such term:

     Bailment Threshold Property – means (a) property with an aggregate cost of $50,000 or more if
such property is in the possession of any individual trade vendor of any Obligor and, (b) property
in the possession of any individual customer of any Obligor if such property has a cost of $800,000
or more or (c) property in the possession of one or more customers of any Obligor to the extent
that the aggregate cost of all such property in the possession of all such customers is in excess
of $3,000,000 (but only such excess property).

     Joint Venture Rights – means any Obligor’s right or obligation to buy or sell shares of
capital stock or other similar equity or ownership interest in a Person pursuant to the terms and
conditions of such Person’s constitutive documents or other similar agreements related to the
formation of such Person, agreements or arrangements with the other holders of capital stock or
other similar equity or ownership interests in such Person (other than the Company or any
wholly-owned Subsidiary of the Company) or other similar agreements.

     Revolving Loan Facility – means a loan agreement or similar facility pursuant to which a
lender or lenders provides revolving loans to the Company or any Subsidiary for the primary purpose
of financing such Person’s ongoing business operations, whether such agreement or facility is
secured or unsecured.

     Secured Parties – means the “Secured Parties” under the Intercreditor Agreement and their
respective successors and assigns in accordance with the Intercreditor Agreement.

     2. Grant of Security Interest. Each Obligor hereby grants to the Collateral Agent,
for the benefit of the Secured Parties, to secure the payment and performance in full of all of the
Secured Obligations, a security interest in and pledges and assigns to the Collateral Agent, for
the benefit of the Secured Parties, the following properties, assets and rights of such Obligor,
wherever located, whether now owned or hereafter acquired or arising, and all proceeds and products
thereof (all of the same being hereinafter called the “Collateral”): all personal and fixture
property of every kind and nature including without limitation all goods (including inventory,
equipment and any accessions thereto), instruments (including promissory notes), documents,
accounts (including health-care-insurance receivables), chattel paper (whether tangible or
electronic), deposit accounts, letters of credit, letter-of-credit rights (whether or not the
letter of credit is evidenced by a writing), commercial tort claims, money, oil, gas or other
minerals before extraction, securities and all other investment property, supporting obligations,
any other contract rights or rights to the payment of money, insurance claims and proceeds, and all
general intangibles (including all payment intangibles), in each case, other than Excluded
Collateral. The Collateral Agent acknowledges that the attachment of its security interest in any
commercial tort claim of any Obligor as original collateral is subject to such Obligor’s compliance
with Section 4.8.

     3. Authorization to File Financing Statements. Each Obligor hereby irrevocably
authorizes the Collateral Agent at any time and from time to time to file in any filing office in
any Uniform Commercial Code jurisdiction any initial financing statements and amendments thereto
that (a) indicate the Collateral (i) as all assets of such Obligor or words of similar effect,

2

 

regardless of whether any particular asset comprised in the Collateral falls within the scope
of Article 9 of the Uniform Commercial Code of the State or such jurisdiction, but specifically
excluding Excluded Collateral, or (ii) as being of an equal or lesser scope or with greater detail,
and (b) provide any other information required by part 5 of Article 9 of the Uniform Commercial
Code of the State or such other jurisdiction for the sufficiency or filing office acceptance of any
financing statement or amendment, including (i) whether such Obligor is an organization, the type
of organization and any organizational identification number issued to such Obligor and, (ii) in
the case of a financing statement filed as a fixture filing or indicating Collateral as
as-extracted collateral or timber to be cut, a sufficient description of real property to which the
Collateral relates. Each Obligor agrees to furnish any such information to the Collateral Agent
promptly upon request. Each Obligor also ratifies its authorization for the Collateral Agent to
have filed in any Uniform Commercial Code jurisdiction any like initial financing statements or
amendments thereto if filed prior to the date hereof.

     4. Other Actions. Further to insure the attachment and perfection of, and the ability
of the Collateral Agent to enforce, the Collateral Agent’s security interest in the Collateral (but
in each instance subject to Permitted First Priority Liens, each Obligor agrees, in each case at
such Obligor’s expense, to take the following actions with respect to the following Collateral and
without limitation on such Obligor’s other obligations contained in this Agreement:

     4.1 Promissory Notes and Tangible Chattel Paper. If any Obligor shall, now or
at any time hereafter, hold or acquire any promissory notes or tangible chattel paper not
constituting Excluded Collateral in excess of $3,000,000 in the aggregate, such Obligor
shall forthwith endorse, assign and deliver the same to the Collateral Agent, accompanied by
such instruments of transfer or assignment duly executed in blank as the Collateral Agent
may from time to time specify; provided, however, that any such promissory
note or tangible chattel paper shall be released and returned to the Obligors (a) pursuant
to the conditions set forth in Sections 13.5 or 13.6 of the Intercreditor
Agreement or (b) at such time that the obligations evidenced by such promissory note or
tangible chattel paper have terminated or have been satisfied and the Obligors shall have
certified in writing to the Collateral Agent that such termination or satisfaction has
occurred.

     4.2 Deposit Accounts. For each deposit account that any Obligor, now or at any
time hereafter, opens or maintains (other than accounts which do not include proceeds of
Collateral or funds generated from the sale of products or services by any Obligor), such
Obligor shall, at the Collateral Agent’s request and option, pursuant to an agreement in
form and substance satisfactory to the Collateral Agent, use its reasonable best efforts to
cause the depositary bank to agree to comply without further consent of such Obligor, at any
time following the occurrence and during the continuance of an Event of Default with
instructions from the Collateral Agent to such depositary bank directing the disposition of
funds from time to time credited to such deposit account. The Collateral Agent agrees with
the Obligors that the Collateral Agent shall not give any such instructions or withhold any
withdrawal rights from the Obligors, unless an Event of Default has occurred and is
continuing, or, would occur if effect were given to any withdrawal not otherwise permitted
by each of the Credit Documents. The provisions of this paragraph shall not apply to (i) a
deposit account for which the Collateral Agent is

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the depositary bank and is in automatic control, and (ii) any deposit accounts
specially and exclusively used for payroll, payroll taxes and other employee wage and
benefit payments to or for the benefit of any Obligor’s salaried employees.

     4.3 Investment Property. If any Obligor shall, now or at any time hereafter,
hold or acquire any one or more certificated securities not evidencing or constituting
Excluded Collateral with a fair market value in excess of $100,000, in the aggregate for all
such certificated securities, such Obligor shall forthwith endorse, assign and deliver the
same to the Collateral Agent, accompanied by such instruments of transfer or assignment duly
executed in blank as the Collateral Agent may from time to time specify. If any securities
(not evidencing or constituting Excluded Collateral) now or hereafter acquired by such
Obligor are uncertificated and are issued to such Obligor or its nominee directly by the
issuer thereof, the Company shall immediately notify the Collateral Agent thereof and, at
the Collateral Agent’s request and option, pursuant to an agreement in form and substance
satisfactory to the Collateral Agent, use its reasonable efforts to cause the issuer to
agree to comply without further consent of such Obligor or such nominee, at any time
following the occurrence and during the continuance of an Event of Default with instructions
from the Collateral Agent as to such securities. If any securities, whether certificated or
uncertificated, or other investment property now or hereafter acquired by any Obligor (not
evidencing or constituting Excluded Collateral) are held by any Obligor or its nominee
through a securities intermediary or commodity intermediary, such Obligor shall immediately
notify the Collateral Agent thereof and, at the Collateral Agent’s request and option,
pursuant to an agreement in form and substance satisfactory to the Collateral Agent, use its
reasonable efforts to cause such securities intermediary or (as the case may be) commodity
intermediary to agree to comply, in each case without further consent of such Obligor or
such nominee, at any time with entitlement orders or other instructions from the Collateral
Agent, subject to the provisions of this Section 4.3 noted below, to such securities
intermediary as to such securities or other investment property, or (as the case may be) to
apply any value distributed on account of any commodity contract as directed by the
Collateral Agent to such commodity intermediary, subject to the provisions of this
Section 4.3 noted below. The Collateral Agent agrees with the Obligors that the
Collateral Agent shall not give any such entitlement orders or instructions or directions to
any such issuer, securities intermediary or commodity intermediary, and shall not withhold
its consent to the exercise of any withdrawal or dealing rights by the Obligors, unless an
Event of Default has occurred and is continuing or would occur, after giving effect to any
such investment and withdrawal rights not otherwise permitted by each of the Credit
Documents. The provisions of this paragraph shall not apply to any financial assets credited
to a securities account for which the Collateral Agent is the securities intermediary.

     4.4 Collateral in the Possession of a Bailee. If any Collateral constituting
Bailment Threshold Property is, now or at any time hereafter, in the possession of a bailee,
the Obligors shall promptly notify the Collateral Agent thereof and, at the Collateral
Agent’s request and option, shall use its reasonable efforts to promptly obtain an
acknowledgement from the bailee, in form and substance satisfactory to the Collateral Agent,
that the bailee holds such Collateral for the benefit of the Collateral Agent and such
bailee’s agreement to comply, without further consent of the Obligors, at any time

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with instructions of the Collateral Agent as to such Collateral. The Collateral Agent
agrees with each Obligor that the Collateral Agent shall not give any such instructions
unless an Event of Default has occurred and is continuing or would occur after taking into
account any action by the Obligors with respect to the bailee.

     4.5 Electronic Chattel Paper and Transferable Records. If any Obligor, now or
at any time hereafter, holds or acquires an interest in any electronic chattel paper or any
“transferable record,” as that term is defined in Section 201 of the federal Electronic
Signatures in Global and National Commerce Act, or in §16 of the Uniform Electronic
Transactions Act as in effect in any relevant jurisdiction, in each case, not constituting
Excluded Collateral, such Obligor shall promptly notify the Collateral Agent thereof and, at
the request and option of the Collateral Agent, shall take such action as the Collateral
Agent may reasonably request to vest in the Collateral Agent control, under §9-105 of the
Uniform Commercial Code, 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, §16 of the Uniform Electronic Transactions Act, as so in effect in such jurisdiction, of
such transferable record. The Collateral Agent agrees with each of the Obligors that the
Collateral Agent will arrange, pursuant to procedures satisfactory to the Collateral Agent
and so long as such procedures will not result in the Collateral Agent’s loss of control,
for the Obligors to make alterations to the electronic chattel paper or transferable record
permitted under UCC §9-105 or, as the case may be, Section 201 of the federal Electronic
Signatures in Global and National Commerce Act or §16 of the Uniform Electronic Transactions
Act for a party in control to make without loss of control, unless an Event of Default has
occurred and is continuing or would occur after taking into account any action by any
Obligor with respect to such electronic chattel paper or transferable record.

     4.6 Letter-of-credit Rights. If any Obligor is, now or at any time hereafter,
a beneficiary under a letter of credit in a face amount in excess of $500,000, such Obligor
shall promptly notify the Collateral Agent thereof and, at the request and option of the
Collateral Agent, such Obligor shall, pursuant to an agreement in form and substance
satisfactory to the Collateral Agent, use its reasonable efforts to either (a) arrange for
the issuer and any confirmer of such letter of credit to consent to a collateral assignment
to the Collateral Agent of the proceeds of the letter of credit or (b) arrange for the
Collateral Agent to become the transferee beneficiary of the letter of credit, with the
Collateral Agent agreeing, in each case, that the proceeds of the letter of credit are to be
applied as provided in the Intercreditor Agreement.

     4.7 Commercial Tort Claims. If any Obligor shall, now or at any time
hereafter, hold or acquire a commercial tort claim in an amount in excess of $500,000, such
Obligor shall immediately notify the Collateral Agent in a writing signed by such Obligor of
the particulars thereof and grant to the Collateral Agent, for the benefit of the Secured
Parties and the Collateral Agent, in such writing a security interest therein and in the
proceeds thereof, all upon the terms of this Agreement, with such writing to be in form and
substance satisfactory to the Collateral Agent.

     4.8 Other Actions as to any and all Collateral. Each Obligor further agrees,
upon the request of the Collateral Agent and at the Collateral Agent’s option, to take any

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and all other actions as the Collateral Agent may reasonably determine to be necessary
or useful for the attachment, and perfection of, and the ability of the Collateral Agent to
enforce, the Collateral Agent’s security interest in any and all of the Collateral,
including, without limitation, (a) executing, delivering and, where appropriate, filing
financing statements and amendments relating thereto under the Uniform Commercial Code, to
the extent, if any, that any Obligor’s signature thereon is required therefor, (b) causing
the Collateral Agent’s name to be noted as secured party on any certificate of title for a
titled good with a book value in excess of $50,000 if such notation is a condition to
attachment, perfection of, or ability of the Collateral Agent to enforce, the Collateral
Agent’s security interest in such Collateral, (c) complying with any provision of any
statute, regulation or treaty of the United States as to any Collateral if compliance with
such provision is a condition to attachment, perfection, or ability of the Collateral Agent
to enforce, the Collateral Agent’s security interest in such Collateral, (d) using
commercially reasonable efforts to obtain governmental and other third party waivers,
consents and approvals, in form and substance reasonably satisfactory to the Collateral
Agent, including, without limitation, any consent of any licensor, lessor or other person
obligated on Collateral, and (e) taking all actions under any earlier versions of the
Uniform Commercial Code or under any other law, as reasonably determined by the Collateral
Agent to be applicable in any relevant Uniform Commercial Code or other jurisdiction,
including any foreign jurisdiction.

     5. Relation to Other Security Documents. The provisions of this Agreement supplement
the provisions of any real estate mortgage or deed of trust granted by the Company to the
Collateral Agent, for the benefit of the Secured Parties and the Collateral Agent, and which
secures the payment or performance of any of the Obligations. Nothing contained in any such real
estate mortgage or deed of trust shall derogate from any of the rights or remedies of the
Collateral Agent or any of the Secured Parties hereunder. In addition to the provisions of this
Agreement being so read and construed with any such mortgage or deed of trust, the provisions of
this Agreement shall be read and construed with the other Security Documents referred to below in
the manner so indicated.

     5.1 Amended and Restated Stock Pledge Agreement. Concurrently herewith the
Company is executing and delivering to the Collateral Agent, for the benefit of the Secured
Parties, an amended and restated stock pledge agreement pursuant to which the Company is
pledging to the Collateral Agent all of the shares of the capital stock or other equity
interests of the Company’s subsidiary or subsidiaries which are Guarantors. Such pledge(s)
shall be governed by the terms of such stock pledge agreement(s) and not by the terms of
this Agreement.

     5.2 Additional Stock Pledge Agreements. Concurrently herewith (a) Total
Plastics, Inc. (“TPI”) is executing and delivering to the Collateral Agent, for the benefit
of the Secured Parties, a stock pledge agreement pursuant to which TPI is pledging to the
Collateral Agent all of the shares of the capital stock or other equity interests of TPI’s
subsidiaries which are Guarantors, (b) Transtar Intermediate Holdings #2, Inc. (“Transtar
Intermediate”) is executing and delivering to the Collateral Agent, for the benefit of the
Secured Parties, a stock pledge agreement pursuant to which Transtar Intermediate is
pledging to the Collateral Agent all of the shares of the capital stock or

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other equity interests of Transtar Intermediate’s subsidiaries which are Guarantors,
and (c) Transtar Metals Holdings, Inc. (“Transtar Metals”) is executing and delivering to
the Collateral Agent, for the benefit of the Secured Parties, a stock pledge agreement
pursuant to which Transtar Metals is pledging to the Collateral Agent all of the shares of
the capital stock or other equity interests of Transtar Metal’s subsidiaries which are
Guarantors. Such pledge(s) shall be governed by the terms of such stock pledge agreement(s)
and not by the terms of this Agreement.

     5.3 Amended and Restated Trademark Collateral and Security Agreement.
Concurrently herewith the Company and TPI will execute and deliver to the Collateral Agent,
for the benefit of the Secured Parties, an amended and restated trademark collateral and
security agreement pursuant to which each such Obligor will pledge to the Collateral Agent
all of its rights and interests in any trademarks in which such Obligor has an interest.
Such pledge shall be governed by the terms of such trademark and collateral and security
agreement and not by the terms of this Agreement, other than Section 2 hereof.

     6. Representations and Warranties Concerning Obligors’ Legal Status. The Obligors
have previously delivered to the Collateral Agent a certificate signed by each Obligor and entitled
“Perfection Certificate” (the “Perfection Certificate”). Each Obligor represents and warrants to
the Secured Parties and the Collateral Agent as of the date hereof as follows: (a) each Obligor’s
exact legal name is that indicated on the Perfection Certificate and on the signature page hereof,
(b) each Obligor is an organization of the type, and is organized in the jurisdiction, set forth in
the Perfection Certificate, (c) the Perfection Certificate accurately sets forth each Obligor’s
organizational identification number or accurately states that each Obligor has none, (d) the
Perfection Certificate accurately sets forth each Obligor’s place of business or, if more than one,
its chief executive office, as well as its mailing address, if different, (e) all other information
set forth on the Perfection Certificate pertaining to each Obligor is accurate and complete in all
material respects, and (f) there has been no change in any of such information since the date on
which the Perfection Certificate was signed by each Obligor.

     7. Covenants Concerning Obligor’s Legal Status. Each Obligor covenants with the
Secured Parties and the Collateral Agent as follows: (a) without providing written notice to the
Collateral Agent not later than 30 days after any change referred to below, no Obligor will change
its name, its place of business or, if more than one, chief executive office, or its mailing
address or organizational identification number if it has one, (b) if any Obligor does not have an
organizational identification number and later obtains one, such Obligor will forthwith notify the
Collateral Agent of such organizational identification number, and (c) such Obligor will not change
its type of organization, jurisdiction of organization or other legal structure unless such change
is otherwise not prohibited by each of the Credit Documents and the Collateral Agent shall have
received written notice of such change not later than 30 days after any such change.

     8. Representations and Warranties Concerning Collateral, Etc. Each Obligor further
represents and warrants to the Secured Parties and the Collateral Agent as of the date hereof as
follows: (a) each Obligor is the owner of the Collateral, free from any right or claim of any
Person or any Lien, except for the security interest created by this Agreement and permitted by
each of the Loan Documents, (b) none of the Collateral constitutes, or is the proceeds of, “farm
products” as defined in §9-102(a)(34) of the Uniform Commercial Code of the State,

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(c) the none of the Obligors holds any commercial tort claims except as indicated on the
Perfection Certificate, (d) each Obligor has at all times operated its business in compliance with
all applicable provisions of the federal Fair Labor Standards Act, as amended, and with all
applicable provisions of federal, state and local statutes and ordinances dealing with the control,
shipment, storage or disposal of hazardous materials or substances to the extent that any failure
to so operate could result in or cause to occur a material adverse impairment to the Collateral or
the Lien created hereby, (e) all other information set forth on the Perfection Certificate
pertaining to the Collateral is accurate and complete in all material respects, and (f) there has
been no change in any of such information since the date on which the Perfection Certificate was
signed by the Obligors.

     9. Covenants Concerning Collateral, Etc. Each Obligor further covenants with the
Secured Parties and the Collateral Agent as follows: (a) (except as permitted by clause (h) and
except for Collateral not constituting Bailment Threshold Property), the Collateral, to the extent
not delivered to the Collateral Agent pursuant to Section 4, will be kept at those locations listed
on the Perfection Certificate and none of the Obligors will remove the Collateral from such
locations, without providing at least 30 days prior written notice to the Collateral Agent, (b)
except for the security interest herein granted and Liens permitted by each of the Credit Documents
or the Intercreditor Agreement, one or more of the Obligors shall be the owner of the Collateral
free from any right or claim of any other Person (other than Joint Venture Rights) or any Lien, and
each of the Obligors shall defend the same against all claims and demands of all Persons at any
time claiming the same or any interests therein adverse to the Collateral Agent or any of the
Secured Parties, (c) no Obligor shall pledge, mortgage or create, or suffer to exist any right of
any Person in or claim by any Person to the Collateral, or any Lien in the Collateral in favor of
any Person, other than the Collateral Agent except for Liens permitted by each of the Credit
Documents and the Intercreditor Agreement, (d) each of the Obligors will keep the Collateral in
good order and repair and will not use the same in violation of law (to the extent that any failure
to so operate could result in or cause to occur a material adverse impairment to the Collateral or
the Lien created hereby) and will comply, in all material respects, with the terms of any policy of
insurance thereon, (e) each of the Obligors will permit the Collateral Agent, or its designee, to
inspect the Collateral in its possession at any reasonable time and to take all reasonable steps to
permit the same with respect to any Collateral in the possession of Persons other than the
Obligors, (f) each of the Obligors will pay promptly when due all taxes, assessments, governmental
charges and levies upon the Collateral or incurred in connection with the use or operation of the
Collateral or incurred in connection with this Agreement other than those in dispute by appropriate
procedures, (g) each Obligor will continue to operate, its business in compliance with all
applicable provisions of the federal Fair Labor Standards Act, as amended, and with all applicable
provisions of federal, state and local statutes and ordinances dealing with the control, shipment,
storage or disposal of hazardous materials or substances to the extent that any failure to so
operate could result in or cause to occur a material adverse impairment to the Collateral or the
Lien created hereby, and (h) none of the Obligors will sell or otherwise dispose, or offer to sell
or otherwise dispose, of the Collateral or any interest therein except for sales of inventory in
the ordinary course of business and, so long as no Default or Event of Default then exists, sales
or other dispositions as otherwise permitted by each of the Credit Documents. Each of the Secured
Parties agrees to instruct the Collateral Agent to release its security interest in the Collateral
in connection with any such sale or disposition pursuant to the terms of the Intercreditor
Agreement.

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     10. Insurance.

     10.1 Maintenance of Insurance. Each Obligor will maintain with financially
sound and reputable insurers insurance with respect to its properties and business against
such casualties and contingencies as shall be in accordance with general practices of
businesses engaged in similar activities in similar geographic areas. Such insurance shall
be in such minimum amounts that no Obligor will be deemed a co-insurer under applicable
insurance laws, regulations and policies and otherwise shall be in such amounts, contain
such terms, be in such forms and be for such periods as may be reasonably satisfactory to
the Collateral Agent. All proceeds of insurance shall be paid and distributed in accordance
with the terms of the Intercreditor Agreement. Without limiting the foregoing, each Obligor
will, in accordance with prudent and reasonable business standards, (a) keep all of its
physical property insured with casualty or physical hazard insurance on an “all risks”
basis, with broad form flood and earthquake coverages and electronic data processing
coverage, (b) maintain all such workers’ compensation or similar insurance as may be
required by law and (c) maintain, in amounts equal to those generally maintained by
businesses engaged in similar activities in similar geographic areas: (i) general public
liability insurance against claims of bodily injury, death or property damage occurring, on,
in or about the properties of each Obligor; (ii) business interruption insurance; and (iii)
product liability insurance.

     10.2 Insurance Proceeds. The proceeds of any casualty insurance in respect of
any casualty loss of any of the Collateral shall be paid and disbursed in accordance with
the terms of the Intercreditor Agreement.

     10.3 Continuation of Insurance. All policies of insurance shall provide for at
least 30 days prior written cancellation notice to the Collateral Agent. In the event of
failure by any Obligor to provide and maintain insurance as herein provided, the Collateral
Agent may, at its option, provide such insurance and charge the amount thereof to any one or
more of the Obligors. Each Obligor shall furnish the Collateral Agent with certificates of
insurance and policies evidencing compliance with the foregoing insurance provision.

     11. Collateral Protection Expenses; Preservation of Collateral.

     11.1 Expenses incurred by Collateral Agent. In the Collateral Agent’s
discretion at any time following the occurrence and during the continuance of an Event of
Default, if any Obligor fails to do so, the Collateral Agent may discharge taxes and other
encumbrances at any time levied or placed on any of the Collateral, maintain any of the
Collateral, make repairs thereto and pay any necessary filing fees or insurance premiums.
Each Obligor agrees to reimburse the Collateral Agent on demand for all expenditures so
made. The Collateral Agent shall have no obligation to any Obligor to make any such
expenditures, nor shall the making thereof be construed as a waiver or cure of any Default
or Event of Default.

     11.2 Collateral Agent’s Obligations and Duties. Anything herein to the
contrary notwithstanding, each Obligor shall remain obligated and liable under each contract
or agreement comprised in the Collateral to be observed or performed by such

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Obligor thereunder. Neither the Collateral Agent nor any Secured Party shall have any
obligation or liability under any such contract or agreement by reason of or arising out of
this Agreement or the receipt by the Collateral Agent or any Secured Party of any payment
relating to any of the Collateral, nor shall the Collateral Agent or any Secured Party be
obligated in any manner to perform any of the obligations of any Obligor under or pursuant
to any such contract or agreement, to make inquiry as to the nature or sufficiency of any
payment received by the Collateral Agent or any Secured Party in respect of the Collateral
or as to the sufficiency of any performance by any party under any such contract or
agreement, to present or file any claim, to take any action to enforce any performance or to
collect the payment of any amounts which may have been assigned to the Collateral Agent or
to which the Collateral Agent or any Secured Party may be entitled at any time or times.
The Collateral Agent’s sole duty with respect to the custody, safe keeping and physical
preservation of the Collateral in its possession, under §9-207 of the Uniform Commercial
Code of the State or otherwise, shall be to deal with such Collateral in the same manner as
the Collateral Agent deals with similar property for its own account.

     12. Securities and Deposits. The Collateral Agent may at any time following and
during the continuance of an Event of Default, at its option, transfer to itself or any nominee any
securities constituting Collateral, receive any income thereon and hold such income as additional
Collateral or apply it to the Obligations pursuant to the terms of the Intercreditor Agreement.
Whether or not any Obligations are due, the Collateral Agent may following and during the
continuance of an Event of Default demand, sue for, collect, or make any settlement or compromise
which it deems desirable with respect to the Collateral.

     13. Notification to Account Debtors and Other Persons Obligated on Collateral. If an
Event of Default shall have occurred and be continuing, each of the Obligors shall, at the request
and option of the Collateral Agent, notify account debtors with respect to the Collateral and other
Persons obligated on any of the Collateral of the security interest of the Collateral Agent in any
account, chattel paper, general intangible, instrument or other Collateral and that payment thereof
is to be made directly to the Collateral Agent or to any financial institution designated by the
Collateral Agent as the Collateral Agent’s agent therefor, and the Collateral Agent may itself, if
an Event of Default shall have occurred and be continuing, without notice to or demand upon any
Obligor, so notify account debtors and other Persons obligated on Collateral. After the making of
such a request or the giving of any such notification, the Obligors shall hold any proceeds of
collection of accounts, chattel paper, general intangibles, instruments and other Collateral
received by any Obligor as trustee for the Collateral Agent, for the benefit of the Secured Parties
and the Collateral Agent, without commingling the same with other funds of any one or more of the
Obligors and shall turn the same over to the Collateral Agent in the identical form received,
together with any necessary endorsements or assignments. The Collateral Agent shall apply the
proceeds of collection of accounts, chattel paper, general intangibles, instruments and other
Collateral received by the Collateral Agent to the Secured Obligations as contemplated by the
Intercreditor Agreement.

     14. Power of Attorney.

     14.1 Appointment and Powers of Collateral Agent. Each Obligor hereby
irrevocably constitutes and appoints the Collateral Agent and any officer or agent thereof,

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with full power of substitution, as its true and lawful attorneys-in-fact with full
irrevocable power and authority in the place and stead of each such Obligor or in the
Collateral Agent’s own name, for the purpose of carrying out the terms of this Agreement, to
take any and all appropriate action and to execute any and all documents and instruments
that may be necessary or useful to accomplish the purposes of this Agreement and, without
limiting the generality of the foregoing, hereby gives said attorneys the power and right,
on behalf of such Obligor, without notice to or assent by any such Obligor, to do the
following:

     (a) upon the occurrence and during the continuance of an Event of Default,
generally to sell, transfer, pledge, make any agreement with respect to or otherwise
dispose of or deal with any of the Collateral in such manner as is consistent with
the Uniform Commercial Code of the State and as fully and completely as though the
Collateral Agent were the absolute owner thereof for all purposes, and to do, at the
Obligors’ expense, at any time, or from time to time, all acts and things which the
Collateral Agent deems necessary or useful to protect, preserve or realize upon the
Collateral and the Collateral Agent’s security interest therein, in order to effect
the intent of this Agreement, all no less fully and effectively as such Obligor
might do, including, without limitation, (i) the filing and prosecuting of
registration and transfer applications with the appropriate federal, state or local
agencies or authorities with respect to trademarks, copyrights and patentable
inventions and processes, (ii) upon written notice to such Obligor, the exercise of
voting rights with respect to voting securities, which rights may be exercised, if
the Collateral Agent so elects, with a view to causing the liquidation of assets of
the issuer of any such securities and (iii) the execution, delivery and recording,
in connection with any sale or other disposition of any Collateral, of the
endorsements, assignments or other instruments of conveyance or transfer with
respect to such Collateral; and

     (b) to the extent that such Obligor’s authorization given in Section 3
is not sufficient, to file such financing statements with respect hereto, with or
without such Obligor’s signature, or a photocopy of this Agreement in substitution
for a financing statement, as the Collateral Agent may deem appropriate and to
execute in such Obligor’s name such financing statements and amendments thereto and
continuation statements which may require the signature of such Obligor.

     14.2 Ratification by the Obligors. To the extent permitted by law, each
Obligor hereby ratifies all that said attorneys shall lawfully do or cause to be done by
virtue hereof. This power of attorney is a power coupled with an interest and is
irrevocable.

     14.3 No Duty on Collateral Agent. The powers conferred on the Collateral Agent
hereunder are solely to protect the interests of the Collateral Agent and the Secured
Parties in the Collateral and shall not impose any duty upon the Collateral Agent to
exercise any such powers. The Collateral Agent shall be accountable only for the amounts
that it actually receives as a result of the exercise of such powers, and neither it nor any
of its officers, directors, employees or agents shall be responsible to any Obligor

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or to the Secured Parties for any act or failure to act, except for the Collateral
Agent’s own gross negligence or willful misconduct.

     15. Rights and Remedies. If an Event of Default shall have occurred and be
continuing, subject to the terms and conditions of the Intercreditor Agreement, the Collateral
Agent, without any other notice to or demand upon any Obligor, shall have in any jurisdiction in
which enforcement hereof is sought, in addition to all other rights and remedies, the rights and
remedies of a secured party under the Uniform Commercial Code of the State and any additional
rights and remedies as may be provided to a secured party in any jurisdiction in which Collateral
is located, including, without limitation, the right to take possession of the Collateral, and for
that purpose the Collateral Agent may, so far as any one or more of the Obligors can give authority
therefor, enter upon any premises on which the Collateral may be situated and remove the same
therefrom. The Collateral Agent may in its discretion require each Obligor to assemble all or any
part of the Collateral at such location or locations within the jurisdiction(s) of such Obligor’s
principal office(s) or at such other locations as the Collateral Agent may reasonably designate.
Unless the Collateral is perishable or threatens to decline speedily in value or is of a type
customarily sold on a recognized market, the Collateral Agent shall give to the Obligors at least
ten (10) days prior written notice to it of the time and place of any public sale of Collateral or
of the time after which any private sale or any other intended disposition is to be made. Each
Obligor hereby acknowledges that ten (10) days prior written notice of such sale or sales shall be
reasonable notice. In addition, to the fullest extent permitted by applicable law, each Obligor
waives any and all rights that it may have to a judicial hearing in advance of the enforcement of
any of the Collateral Agent’s rights and remedies hereunder, including, without limitation, its
right following and during the continuance of an Event of Default to take immediate possession of
the Collateral and to exercise its rights and remedies with respect thereto.

     16. Standards for Exercising Rights and Remedies. To the extent that applicable law
imposes duties on the Collateral Agent to exercise remedies in a commercially reasonable manner,
each Obligor acknowledges and agrees that it is not commercially unreasonable for the Collateral
Agent (a) to fail to incur expenses reasonably deemed significant by the Collateral Agent to
prepare Collateral for disposition or otherwise to fail to complete raw material or work in process
into finished goods or other finished products for disposition, (b) to fail to obtain third party
consents for access to Collateral to be disposed of, or to obtain or, if not required by other law,
to fail to obtain governmental or third party consents for the collection or disposition of
Collateral to be collected or disposed of, (c) to fail to exercise collection remedies against
account debtors or other persons obligated on Collateral or to fail to remove Liens on or any
adverse claims against Collateral, (d) to exercise collection remedies against account debtors and
other Persons obligated on Collateral directly or through the use of collection agencies and other
collection specialists, (e) to advertise dispositions of Collateral through publications or media
of general circulation, whether or not the Collateral is of a specialized nature, (f) to contact
other Persons, whether or not in the same business as any of the Obligors, for expressions of
interest in acquiring all or any portion of the Collateral, (g) to hire one or more professional
auctioneers to assist in the disposition of Collateral, whether or not the Collateral is of a
specialized nature, (h) to dispose of Collateral by utilizing Internet sites that provide for the
auction of assets of the types included in the Collateral or that have the reasonable capability of
doing so, or that match buyers and sellers of assets, (i) to dispose of assets in wholesale rather
than retail markets, (j) to disclaim disposition warranties, (k) to purchase insurance or credit
enhancements to insure the

12

 

Collateral Agent against risks of loss, collection or disposition of Collateral or to provide
to the Collateral Agent a guaranteed return from the collection or disposition of Collateral, or
(l) to the extent deemed appropriate by the Collateral Agent, to obtain the services of brokers,
investment bankers, consultants and other professionals to assist the Collateral Agent in the
collection or disposition of any of the Collateral. Each Obligor acknowledges that the purpose of
this Section 16 is to provide non-exhaustive indications of what actions or omissions by
the Collateral Agent would fulfill the Collateral Agent’s duties under the Uniform Commercial Code
of the State or any other relevant jurisdiction in the Collateral Agent’s exercise of remedies
against the Collateral and that other actions or omissions by the Collateral Agent shall not be
deemed to fail to fulfill such duties solely on account of not being indicated in this Section
16. Without limitation upon the foregoing, nothing contained in this Section 16 shall
be construed to grant any rights to any Obligor or to impose any duties on the Collateral Agent
that would not have been granted or imposed by this Agreement or by applicable law in the absence
of this Section 16.

     17. No Waiver by Collateral Agent, etc. The Collateral Agent shall not be deemed to
have waived any of its rights and remedies in respect of the Obligations or the Collateral unless
such waiver shall be in writing and signed by the Collateral Agent. No delay or omission on the
part of the Collateral Agent in exercising any right or remedy shall operate as a waiver of such
right or remedy or any other right or remedy. A waiver on any one occasion shall not be construed
as a bar to or waiver of any right or remedy on any future occasion. All rights and remedies of
the Collateral Agent with respect to the Obligations or the Collateral, whether evidenced hereby or
by any other instrument or papers, shall be cumulative and may be exercised singularly,
alternatively, successively or concurrently at such time or at such times as the Collateral Agent
deems expedient.

     18. Suretyship Waivers by the Obligors. Each Obligor waives demand, notice, protest,
notice of acceptance of this Agreement, notice of loans made, credit extended, Collateral received
or delivered or other action taken in reliance hereon and all other demands and notices of any
description. With respect to both the Obligations and the Collateral, each Obligor assents to any
extension or postponement of the time of payment or any other indulgence, to any substitution,
exchange or release of or failure to perfect any security interest in any Collateral, to the
addition or release of any party or Person primarily or secondarily liable, to the acceptance of
partial payment thereon and the settlement, compromising or adjusting of any thereof, all in such
manner and at such time or times as the Collateral Agent may deem advisable. The Collateral Agent
shall have no duty as to the collection or protection of the Collateral or any income therefrom,
the preservation of rights against prior parties, or the preservation of any rights pertaining
thereto beyond the safe custody thereof as set forth in Section 11.2. Each Obligor further
waives any and all other suretyship defenses.

     19. Marshalling. Neither the Collateral Agent nor any Secured Party shall be required
to marshal any present or future collateral security (including but not limited to the Collateral)
for, or other assurances of payment of, the Obligations or any of them or to resort to such
collateral security or other assurances of payment in any particular order, and all of the rights
and remedies of the Collateral Agent or any Secured Party hereunder and of the Collateral Agent or
any Secured Party in respect of such collateral security and other assurances of payment shall be
cumulative and in addition to all other rights and remedies, however existing or

13

 

arising. To the extent that it lawfully may, each Obligor hereby agrees that it will not
invoke any law relating to the marshalling of collateral which might cause delay in or impede the
enforcement of the Collateral Agent’s rights and remedies under this Agreement or under any other
instrument creating or evidencing any of the Obligations or under which any of the Obligations is
outstanding or by which any of the Obligations is secured or payment thereof is otherwise assured,
and, to the extent that it lawfully may, the Company hereby irrevocably waives the benefits of all
such laws.

     20. Proceeds of Dispositions; Expenses. Each Obligor shall pay to the Collateral
Agent on demand any and all expenses, including reasonable attorneys’ fees and disbursements,
incurred or paid by the Collateral Agent in protecting, preserving or enforcing the Collateral
Agent’s rights and remedies under or in respect of any of the Obligations or any of the Collateral.
After deducting all of said expenses, the residue of any proceeds of collection or sale or other
disposition of Collateral shall, to the extent actually received in cash, be applied to the payment
of the Obligations in such order or preference as is provided in the Intercreditor Agreement. Upon
the final payment and satisfaction in full of all of the Obligations and after making any payments
required by Sections 9-608(a)(1)(C) or 9-615(a)(3) of the Uniform Commercial Code of the State, any
excess shall be returned to the Obligors. In the absence of final payment and satisfaction in full
of all of the Obligations, each of the Obligors shall remain liable for any deficiency.

     21. Overdue Amounts. Until paid, all amounts due and payable by any one or more of
the Obligors hereunder shall (a) be a debt secured by the Collateral and (b) bear, whether before
or after judgment, interest at the highest rate of interest provided for overdue payments in any of
the Credit Documents commencing 30 days after any such Obligor’s receipt of a written notice that
such amounts are due and owing. For the avoidance of doubt, all principal, interest and other
amounts due under any Credit Document shall bear interest, and default interest, as provided in
such Credit Document.

     22. Governing Law; Consent to Jurisdiction. THIS AGREEMENT SHALL BE GOVERNED BY, AND
CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE. Each Obligor agrees that any action or claim
arising out of any dispute in connection with this Agreement, any rights or obligations hereunder
or the performance or enforcement of such rights or obligations may be brought in the courts of the
State or any federal court sitting therein and consents to the non-exclusive jurisdiction of such
court and to service of process in any such suit being made upon any Obligor by mail at the address
specified in Section 13.4 of the Intercreditor Agreement. Each Obligor hereby waives any objection
that it may now or hereafter have to the venue of any such suit or any such court or that such suit
is brought in an inconvenient court.

     23. Waiver of Jury Trial. EACH OBLIGOR, EACH SECURED PARTY AND THE COLLATERAL AGENT
WAIVES ITS RIGHT TO A JURY TRIAL WITH RESPECT TO ANY ACTION OR CLAIM ARISING OUT OF ANY DISPUTE IN
CONNECTION WITH THIS AGREEMENT, ANY RIGHTS OR OBLIGATIONS HEREUNDER OR THE PERFORMANCE OR
ENFORCEMENT OF ANY SUCH RIGHTS OR OBLIGATIONS. Except as prohibited by law, each Obligor waives
any right which it may have to claim or recover in any litigation referred to in the preceding
sentence any special, exemplary, punitive or consequential damages or any damages other than, or in
addition to, actual damages. Each

14

 

Obligor (a) certifies that neither the Collateral Agent or any Secured Party nor any
representative, agent or attorney of the Collateral Agent or any Secured Party has represented,
expressly or otherwise, that the Collateral Agent or any Secured Party would not, in the event of
litigation, seek to enforce the foregoing waivers or other waivers contained in this Agreement and
(b) acknowledges that, in entering into each of the Security Documents, the Collateral Agent and
the Secured Parties are relying upon, among other things, the waivers and certifications contained
in this Section 23.

     24. Termination. Upon either final payment and performance in full of the Secured
Obligations and the cancellation or termination of any commitment to extend credit under the Credit
Documents or satisfaction of the conditions set forth in Section 13.5 of the Intercreditor
Agreement, this Agreement shall terminate and the Collateral Agent shall, at the Obligors’ request
and expense, return such Collateral in the possession or control of the Collateral Agent as has not
theretofore been disposed of pursuant to the provisions hereof, together with any moneys and other
property at the time held by the Collateral Agent hereunder. Upon satisfaction of the conditions
set forth in Section 13.6 of the Intercreditor Agreement, this Agreement shall terminate with
respect to the Collateral being released and the Collateral Agent shall, at the Company’s request
and expense, return any Collateral held by the Collateral Agent hereunder and take all necessary
action to release the Lien on such Collateral created hereby.

     25. Miscellaneous. The headings of each section of this Agreement are for convenience
only and shall not define or limit the provisions thereof. This Agreement and all rights and
obligations hereunder shall be binding upon each of the Obligors and its successors and assigns,
and shall inure to the benefit of the Collateral Agent, the Secured Parties and their respective
successors and assigns. If any term of this Agreement shall be held to be invalid, illegal or
unenforceable, the validity of all other terms hereof shall in no way be affected thereby, and this
Agreement shall be construed and be enforceable as if such invalid, illegal or unenforceable term
had not been included herein. Each Obligor acknowledges receipt of a copy of this Agreement.

     26. Subject to Intercreditor Agreement. Any and all rights granted to the Collateral
Agent under this Agreement are to be held and exercised by the Collateral Agent as security trustee
for the benefit of the Secured Parties pursuant to the provisions of the Intercreditor Agreement.
Each of the Secured Parties shall be a beneficiary of the terms of this Agreement. Any and all
obligations under this Agreement of the parties to this Agreement, and the rights and indemnities
granted to the Collateral Agent under this Agreement, are created and granted subject to, and in
furtherance (and not in limitation) of, the terms of the Intercreditor Agreement and the rights and
indemnities of the Secured Parties contained therein shall apply equally to this Agreement.
Nothing in this Agreement expressed or implied is intended or shall be construed to give to any
Person other than the Obligors, the Secured Parties and the Collateral Agent any legal or equitable
right, remedy, or claim under or in respect of this Agreement or any covenant, condition, or
provision herein contained; and all such covenants, conditions and provisions are and shall be held
to be for the sole and exclusive benefit of the Obligors, the Secured Parties and the Collateral
Agent. Notwithstanding anything herein to the contrary, the Collateral Agent shall exercise its
rights and powers subject to the direction and indemnity of the Secured Parties as provided in the
Intercreditor Agreement.

15

 

     Notwithstanding anything to the contrary in this Agreement, in the event that any term or
provision of the Intercreditor Agreement conflicts with any term or provision of this Agreement,
the relevant terms and provisions of the Intercreditor Agreement shall control concerning such
specific term or provision.

     27. Course of Dealing. No course of dealing among any one or more of the Obligors,
the Secured Parties and the Collateral Agent, nor any failure to exercise, nor any delay in
exercising, on the part of the Collateral Agent or any of the Secured Parties, any right, power or
privilege hereunder or under the Security Agreement shall operate as a waiver thereof; nor shall
any single or partial exercise of any right, power or privilege hereunder or thereunder preclude
any other or further exercise thereof or the exercise of any other right, power or privilege.

     28. Amendment and Restatement. Each Obligor hereby acknowledges, confirms and agrees
that the Collateral Agent shall continue to have a security interest in and lien upon the
Collateral heretofore granted to the Collateral Agent (or any predecessor Collateral Agent)
pursuant to the Prior Security Agreement to secure the Secured Obligations, as well as any
Collateral granted under this Agreement or under any of the other Security Document or otherwise
granted to or held by the Collateral Agent. The liens and security interests of the Collateral
Agent in the Collateral shall be deemed to be continuously granted and perfected from the earliest
date of the granting and perfection of such liens and security interests to the Collateral Agent
(or any predecessor Collateral Agent), whether under the Prior Security Agreement, this Agreement
or any of the other Security Documents. Except as otherwise stated in this Section 28, as
of the date hereof, the terms, conditions, agreements, covenants, representations and warranties
set forth in the Prior Security Agreement are simultaneously amended and restated in their
entirety, and as so amended and restated, replaced and superseded by the terms, conditions,
agreements, covenants, representations and warranties set forth in this Agreement, except that
nothing herein or in the other Security Documents shall impair or adversely affect the continuation
of the security interests, liens and other interests in the Collateral heretofore granted, pledged
or assigned by the Obligors to the Collateral Agent (or any predecessor Collateral Agent), whether
directly, indirectly or otherwise. The amendment and restatement contained herein shall not, in
any manner, be construed to impair, limit, cancel or extinguish, or constitute a novation in
respect of, the liens and security interests of the Collateral Agent (or any predecessor Collateral
Agent), granted under the Prior Security Agreement, which shall not in any manner be impaired,
limited, terminated, waived or released, but shall continue in full force and effect in favor of
Collateral Agent for the benefit of the Secured Parties.

[Intentionally left blank. Next page is a signature page.]

16

 

     IN WITNESS WHEREOF, intending to be legally bound, each Obligor has caused this Agreement to
be duly executed as of the date first above written.

	 	 	 	 	 	 	 
	 	 	A. M. CASTLE & CO.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Michael H. Goldberg	 	 
	 

	 	 	 	 

Name: Michael H. Goldberg
	 	 
	 

	 	 	 	Title: President & CEO	 	 
	 
	 	 	 	 	 	 
	 	 	DATAMET, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Jerry M. Aufox	 	 
	 

	 	 	 	 

Name: Jerry M. Aufox
	 	 
	 

	 	 	 	Title: Secretary	 	 
	 
	 	 	 	 	 	 
	 	 	KEYSTONE TUBE COMPANY, LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Jerry M. Aufox	 	 
	 

	 	 	 	 

Name: Jerry M. Aufox
	 	 
	 

	 	 	 	Title: Secretary	 	 
	 
	 	 	 	 	 	 
	 	 	PARAMONT MACHINE COMPANY, LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Jerry M. Aufox	 	 
	 

	 	 	 	 

Name: Jerry M. Aufox
	 	 
	 

	 	 	 	Title: Secretary	 	 
	 
	 	 	 	 	 	 
	 	 	ADVANCED FABRICATING TECHNOLOGY, LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Jerry M. Aufox	 	 
	 

	 	 	 	 

Name: Jerry M. Aufox
	 	 
	 

	 	 	 	Title: Secretary	 	 

 

 

	 	 	 	 	 	 	 
	 	 	OLIVER STEEL PLATE CO.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Jerry M. Aufox	 	 
	 

	 	 	 	 

Name: Jerry M. Aufox
	 	 
	 

	 	 	 	Title: Secretary	 	 
	 
	 	 	 	 	 	 
	 	 	METAL MART, LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Jerry M. Aufox	 	 
	 

	 	 	 	 

Name: Jerry M. Aufox
	 	 
	 

	 	 	 	Title: Secretary	 	 
	 
	 	 	 	 	 	 
	 	 	TOTAL PLASTICS, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Lawrence A. Boik	 	 
	 

	 	 	 	 

Name: Lawrence A. Boik
	 	 
	 

	 	 	 	Title: Vice President	 	 
	 
	 	 	 	 	 	 
	 	 	TRANSTAR INTERMEDIATE HOLDINGS #2, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Lawrence A. Boik	 	 
	 

	 	 	 	 

Name: Lawrence A. Boik
	 	 
	 

	 	 	 	Title: Vice President	 	 
	 
	 	 	 	 	 	 
	 	 	TRANSTAR METALS HOLDINGS, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Michael H. Goldberg	 	 
	 

	 	 	 	 

Name: Michael H. Goldberg
	 	 
	 

	 	 	 	Title: Vice President	 	 
	 
	 	 	 	 	 	 
	 	 	TRANSTAR INVENTORY CORP.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Lawrence A. Boik	 	 
	 

	 	 	 	 

Name: Lawrence A. Boik
	 	 
	 

	 	 	 	Title: Vice President	 	 

 

 

	 	 	 	 	 	 	 
	 	 	TRANSTAR METALS CORP.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Lawrence A. Boik	 	 
	 

	 	 	 	 

Name: Lawrence A. Boik
	 	 
	 

	 	 	 	Title: Vice President	 	 
	 
	 	 	 	 	 	 
	 	 	TRANSTAR MARINE CORP.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Lawrence A. Boik	 	 
	 

	 	 	 	 

Name: Lawrence A. Boik
	 	 
	 

	 	 	 	Title: Vice President	 	 

	 	 	 	 	 
	Accepted:	 	 
	 
	 	 	 	 
	BANK OF AMERICA, N.A., as	 	 
	Collateral Agent	 	 
	 
	 	 	 	 
	By:

	 	/s/ David A Johanson	 	 
	 

	 	 

Name: David A. Johanson
	 	 
	 

	 	Title:   Vice President	 	 

 

 

SCHEDULE A

	1.	 	Datamet, Inc.
	 
	2.	 	Keystone Tube Company, LLC
	 
	3.	 	Paramont Machine Company, LLC
	 
	4.	 	Advanced Fabricating Technology, LLC
	 
	5.	 	Oliver Steel Plate Co.
	 
	6.	 	Metal Mart, LLC
	 
	7.	 	Total Plastics, Inc.
	 
	8.	 	Transtar Intermediate Holdings #2, Inc.
	 
	9.	 	Transtar Metals Holdings, Inc.
	 
	10.	 	Transtar Inventory Corp.
	 
	11.	 	Transtar Metals Corp.
	 
	12.	 	Transtar Marine Corp.

Schedule A-1

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