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Exhibit 4.5    
  

Execution Copy 

SECURITY AGREEMENT 

dated
as of July 15, 2002 

By

NEW CF&I, INC.

as Grantor

and

U.S. BANK NATIONAL ASSOCIATION

as Trustee 

New
CF&I Securitiy Agreement 

   Table of Contents  

	Description
 
	 	Page No(s)

	RECITALS:
	

ARTICLE I DEFINITIONS
	

1.1	
 	
Defined Terms	
 	

1
	1.2	 	Interpretation	 	6
	

ARTICLE II GRANT OF SECURITY INTERESTS
	

2.1	
 	
Security Grant	
 	

7
	

ARTICLE III OBLIGATIONS
	

3.1	
 	
Obligations	
 	

8
	

ARTICLE IV REPRESENTATIONS AND WARRANTIES
	

4.1	
 	
Validity, Perfection and Priority	
 	

8
	4.2	 	No Liens	 	9
	4.3	 	Chief Executive Office	 	9
	4.4	 	Jurisdiction of Organization	 	9
	4.5	 	[INTENTIONALLY OMITTED]	 	9
	4.6	 	Organization; Qualification	 	9
	4.7	 	Corporate Power, Binding Obligation	 	9
	4.8	 	No Violation	 	9
	4.9	 	No Litigation	 	10
	4.10	 	Prior Name	 	10
	4.11	 	Other Security Agreement	 	10
	4.12	 	No Consents	 	10
	4.13	 	Farm Products	 	10
	4.14	 	All Information Accurate	 	10
	4.15	 	Representations Regarding Contracts Constituting Collateral	 	10
	4.16	 	Copyrights, Patents and Trademarks	 	11
	

ARTICLE V COVENANTS
	

5.1	
 	
Further Assurances	
 	

11
	5.2	 	Change of Name, Identity, Corporate Structure or Location	 	12
	5.3	 	Change of Jurisdiction of Organization	 	12
	5.4	 	Maintain Records	 	12
	5.5	 	Payment of Obligations	 	12
	5.6	 	Negative Pledge	 	13
	5.7	 	Compliance with Laws	 	13
	5.8	 	No Impairment; Defense of Collateral	 	13
	5.9	 	No Transfer of Collateral	 	13
	5.10	 	Delivery of Instruments and Chattel Paper	 	13
	5.11	 	Inspections	 	13
	5.12	 	Insurance	 	13
	5.13	 	Notices	 	14
	5.14	 	Fair Labor Standards Act	 	14
	5.15	 	Covenants Regarding Contracts Constituting Collateral	 	14

i

 

	

ARTICLE VI OBLIGATIONS OF GRANTOR RELATING

TO INTELLECTUAL PROPERTY
	

6.1	
 	
Intellectual Property	
 	

15
	

ARTICLE VII POWER OF ATTORNEY
	

7.1	
 	
Power of Attorney	
 	

17
	7.2	 	Irrevocable Grant	 	18
	

ARTICLE VIII REMEDIES; RIGHTS UPON DEFAULT
	

8.1	
 	
Rights and Remedies Generally	
 	

19
	8.2	 	Notice to Obligors and Contract Parties	 	19
	8.3	 	Proceeds to be Turned Over to Trustee	 	19
	8.4	 	Obtaining Possession of the Collateral	 	19
	8.5	 	Disposition of Collateral	 	20
	8.6	 	Additional Non-UCC Remedies	 	20
	8.7	 	Certain Sales of Collateral	 	21
	8.8	 	Certain Remedies in Respect of Intellectual Property	 	21
	8.9	 	Specific Performance	 	21
	8.10	 	Recourse	 	21
	8.11	 	Application of Proceeds	 	21
	8.12	 	Expenses; Attorneys Fees	 	21
	8.13	 	Limitation on Duties Regarding Preservation of Collateral	 	22
	

ARTICLE IX MISCELLANEOUS
	

9.1	
 	
Indemnity	
 	

23
	9.2	 	Governing Law	 	23
	9.3	 	Consent to Jurisdiction and Service Process	 	23
	9.4	 	Notices	 	24
	9.5	 	Grantor Remains Liable	 	24
	9.6	 	Appointment as Trustee	 	24
	9.7	 	Trustee May Perform	 	24
	9.8	 	Authority of Trustee	 	25
	9.9	 	Successors and Assigns	 	25
	9.10	 	Amendments in Writing: No Waiver; Cumulative Remedies	 	25
	9.11	 	Termination	 	26
	9.12	 	Release of Collateral	 	26
	9.13	 	Headings Descriptive	 	26
	9.14	 	Severability	 	26
	9.15	 	Other Security	 	26
	9.16	 	Execution in Counterparts	 	26
	9.17	 	Obligations Absolute	 	26
	9.18	 	Limitation on Interest Payable	 	27
	9.19	 	Indenture Controls	 	27
	9.20	 	Trust Indenture Act Controls	 	27
	9.21	 	Notice under ORS 746.201	 	27
	9.22	 	Intercreditor Agreement. The rights and obligations of the parties hereto are subject to the Intercreditor Agreement.	 	28

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	Schedule 2.1(f)	 	Excluded Equipment	 	 
	Schedule 4.1	 	Necessary Filings	 	 
	Schedule 4.3	 	Chief Executive Office, Locations of Books and Records and Trade Names	 	 
	Schedule 4.16(a)	 	Copyrights and Copyright Licenses	 	 
	Schedule 4.16(b)	 	Patents and Patent Licenses	 	 
	Schedule 4.16(c)	 	Trademarks and Trademark Licenses	 	 
	

Exhibit A	
 	

Form of Security Supplement	
 	

 

iii

   SECURITY AGREEMENT 

        THIS
SECURITY AGREEMENT, dated as of July 15, 2002 (as the same may from time to time be amended, restated, supplemented or otherwise modified, this "Security
Agreement"), is made by New CF&I, Inc., a Delaware corporation, having an office at 1000 S.W. Broadway, Suite 2200, Portland, Oregon 97205
("Grantor," which term includes its successors pursuant to the Indenture referred to below), in favor of U.S. Bank National Association, as trustee for
its own benefit and the ratable benefit of the Holders (as hereinafter defined) (in such capacity and together with any successors in such capacity,
"Trustee.") 

RECITALS:

        WHEREAS,
Grantor and Trustee are, contemporaneously with the execution and delivery of this Security Agreement, entering into an indenture dated as of July 15, 2002 among Oregon Steel
Mills, Inc., a Delaware corporation ("OSM"), Grantor, CF&I Steel, L.P., a Delaware limited partnership
("CF&I") and Trustee (as the same may from time to time be amended, restated, supplemented or otherwise modified, the "Indenture") pursuant to which OSM
is issuing its 10% First Mortgage Notes due 2009 (the "Securities") in the aggregate principal amount of $305,000,000; 

        WHEREAS,
Grantor is the owner of the Collateral (as hereinafter defined); 

        WHEREAS,
it is a condition precedent to the purchase of the Securities that Grantor shall have executed and delivered this Security Agreement to Trustee for the ratable benefit of the
registered holders from time to time of the Securities (the "Holders"); and 

        WHEREAS,
this Security Agreement is given by Grantor in favor of Trustee for its benefit and the ratable benefit of the Holders to secure the payment and performance of the Obligations
(as hereinafter defined). 

        NOW,
THEREFORE, in consideration of the foregoing premises and in order to induce Trustee to enter into the Indenture and to induce the Holders to purchase the Securities and for other
good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Grantor and Trustee hereby agree for the ratable benefit of the Holders as follows: 

ARTICLE I 

DEFINITIONS 

        1.1    Defined Terms.    All section references herein to the UCC (as hereinafter defined) shall include all successor
sections under any subsequent version or amendment to any Article of the UCC. Capitalized terms used herein but not otherwise defined shall have the meanings assigned to such terms in the Indenture. 

        "Accession" shall mean "accession" as such term is defined in Article 9 of the UCC. 

        "Account Debtor" shall mean "account debtor" as such term is defined in Article 9 of the UCC 

        "Account" shall mean "account" as such term is defined in Article 9 of the UCC. 

        "Business Day" shall mean any day, other than a Saturday, a Sunday, or a day on which banking institutions in the City of New York or at a
place of payment are authorized by law, regulation or executive order to remain closed. 

        "Cash Proceeds" shall have the meaning ascribed thereto in Section 8.3. 

        "Chattel Paper" shall mean "chattel paper" as defined in Article 9 of the UCC, including, without limitation, "electronic chattel paper"
and "tangible chattel paper," as each term is defined in Article 9 of the UCC. 

1

 

        "CF&I" shall have the meaning ascribed thereto in the recitals hereof. 

        "Collateral" shall have the meaning ascribed thereto in Article II. 

        "Collateral Records" shall mean books, records, ledger cards, files, correspondence, customer lists, blueprints, technical specifications,
manuals, computer software, computer printouts, tapes, disks and related data processing software and similar items that at any time evidence or contain information relating to any of the Collateral
or are otherwise necessary or helpful in the collection thereof or realization thereupon. 

        "Collateral Support" shall mean all property (real or personal) assigned, hypothecated or otherwise securing any Collateral and shall
include any security agreement or other agreement granting a lien or security interest in such real or personal property. 

        "Contracts" shall mean any and all contracts and agreements, as such may be amended, restated, supplemented, or otherwise modified from
time to time, including without limitation, (a) all rights to receive moneys due and to become due to Grantor thereunder or in connection therewith, (b) all rights to damages arising out of or for
breach or default in respect thereof and (c) all rights to perform and exercise all remedies thereunder. 

        "Copyrights" shall mean (a) all copyrights in all works, whether published or unpublished, registered or unregistered relating to
production, property, plant and equipment, the operation thereof or the manufacturing processes, including, without limitation, the copyrights in the works listed on Schedule 4.16(a) (as such schedule
may be amended or supplemented from time to time), all registrations and recordings thereof, and all applications in connection therewith, including, without limitation, registrations, recordings and
applications in the United States Copyright Office or in any other country, (b) all renewals thereof; and (c) the right to sue for past, present and future infringements of any of the foregoing, and
all proceeds of the foregoing, including licenses, royalties, income, payments, claims, damages and proceeds of suit. 

        "Copyright License" shall mean any and all agreements, written or oral, providing for the grant by or to Grantor of any right to
reproduce, copy, publish or otherwise use any Copyright relating to production, property, plant and equipment, the operation thereof or the manufacturing processes, including without limitation, any
of the agreements referred to on Schedule 4.16(a) (as such schedule may be amended or supplemented from time to time). 

        "Default Rate" shall have the meaning ascribed to it in Section 5.12. 

        "Documents" shall mean "documents" as such term is defined in Article 9 of the UCC. 

        "Equipment" shall mean all "equipment" as defined in Article 9 of the UCC, including, without limitation, all machinery, apparatus,
equipment, office machinery, furniture, electric arc furnaces, heat treating machinery, rolling mills, pipe mills, rod mills, bar mills, rail mills, pipe coating machinery, furnaces, conveyors, tools,
manufacturing equipment, Fixtures and all other equipment of any kind or nature, wherever located, and all modifications, alterations, repairs, substitutions, additions and Accessions thereto and all
replacements and all parts therefor, other than Motor Vehicles and Mobile Equipment. 

        "Excluded Collateral" shall mean (i) the approximately 67 acres of real property in Camrose, Alberta, on which the Camrose Pipe Mill is
located, together with all buildings, improvements and fixtures thereon, and all related leases, rents and other rights, (ii) the real property in Pueblo County, Colorado and Fremont County, Colorado
commonly known as the Pueblo Outside the Fence Property, and any contracts of sale or lease for any of the Pueblo Outside the Fence Property, (iii) Motor Vehicles and Mobile Equipment, (iv) the two
trailers located on the Pueblo Inside the Fence Property, (v) the condominiums located at 170 S. Del Monte Place, Pueblo, CO 81007-3644 and 769 Cottage Drive, Napa, CA 94558-1247, (vi) the Excluded
Assets, (vii) the Excluded Securities, 

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(viii) Intercompany Indebtedness and (ix) any Proceeds or products of any of the foregoing, except to the extent that such Proceeds or products are invested in real property or improvements
thereon, machinery and Equipment or other property and assets of the types described in (and not excluded from) Sections 2.1(a) through (k). 

        "Fixtures" shall mean all "fixtures" as defined in Article 9 of the UCC. 

        "General Intangibles" shall mean all "general intangibles" as defined in Article 9 of the UCC, including, without limitation, all
goodwill, trademarks, trade names, service marks, patents, copyrights, industrial designs, other industrial or intellectual property or rights therein, whether under license or otherwise, payment
intangibles (as defined in Article 9 of the UCC), programs, software, software codes, computer systems, customer lists, programming material, books, catalogs and other printed materials, publications,
indexes, lists, data and other documents and papers relating thereto, blueprints, designs, charts, and research and development, whether on paper, recorded electronically or otherwise, and all
interest rate or currency protection or hedging arrangements, all tax refunds, all licenses, permits, concessions and authorizations and all Intellectual Property (in each case, regardless of whether
characterized as general intangibles under Article 9 of the UCC). 

        "Governmental Authority" shall mean any nation or government, any state, municipality or other political subdivision thereof and any
entity exercising executive, legislative, judicial, regulatory or administrative functions of or pertaining to government. 

        "Grantor" shall have the meaning ascribed thereto in the preamble hereof. 

        "Indemnitees" shall have the meaning ascribed thereto in Section 9.1 

        "Indenture" shall have the meaning ascribed thereto in the recitals hereof. 

        "Insurance" shall mean (regardless of whether Trustee is the loss payee thereof): (i) all insurance polices covering any or all property
and assets of the types described in (and not excluded from) Sections 2.1(a) through (k), and (ii) any key man life insurance policies. 

        "Instruments" shall mean "instruments" as such term is defined in Article 9 of the UCC. 

        "Intellectual Property" shall mean, collectively, the Copyrights, the Copyright Licenses, the Patents, the Patent Licenses, the
Trademarks, the Trademark Licenses, the Trade Secrets and the Trade Secret Licenses of Grantor, including without limitation, any Intellectual Property listed on the schedules hereto. 

        "Inventory" shall have the meaning ascribed thereto in the definition of "Revolver Collateral." 

        "Licenses" shall mean Copyright Licenses, Patent Licenses, Trademark Licenses and Trade Secret Licenses, collectively. 

        "Lien" means any mortgage, charge, pledge, lien (statutory or other), security interest, hypothecation, assignment for security, claim,
preference, priority or other encumbrance of any kind, regardless of whether filed, recorded or otherwise perfected under applicable laws, including any conditional sale, capital lease or other title
retention agreement, any lease in the nature thereof, any option or other agreement to sell or give a security interest in and any filing of or agreement to give any financing statement under the
Uniform Commercial Code (or equivalent statutes) of any jurisdiction. 

        "Material Adverse Effect" shall mean a material adverse effect on any of (a) the business, operations, property, condition (financial or
otherwise) or prospects of OSM and the Guarantors taken as a whole; (b) the validity or enforceability of (i) this Security Agreement, any other Security Document, the Notes, the Indenture, the
Registration Rights Agreement, the Intercreditor Agreement 

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or the Guarantees (ii) the rights or remedies of Trustee (or any other trustee) or the Holders hereunder or thereunder, or (c) the value of the Collateral taken as a whole. 

        "Mobile Equipment" shall mean mobile cranes, loaders, forklifts, trailers, backhoes, towmotors, graders and all other categories of
equipment as listed on Schedule 2.1(f). 

        "Motor Vehicles" shall mean all cars, trucks, trailers, construction and earth moving equipment and other vehicles and Mobile Equipment
covered by a certificate of title law of any state and all tires, Accessions, additions and other appurtenances to, substitutions for and replacements of any of the foregoing;  provided that any such
substitutions or replacements constitute Motor Vehicles as defined in this sentence. 

        "Obligations" shall have the meaning ascribed to it in Section 3.1. 

        "OSM" shall have the meaning ascribed thereto in the recitals hereof. 

        "Patents" shall mean (a) all letters patent of the United States or any other country and all reissues, continuations,
continuations-in-part, divisions and extensions, renewals and reexaminations thereof relating to production, property, plant and equipment, the operation thereof or the manufacturing processes,
including, without limitation, any thereof referred to on Schedule 4.16(b) (as such schedule may be amended or supplemented from time to time), (b) all applications for letters patent of the United
States or any other country and all divisions, continuations and continuations-in-part thereof, including, without limitation, any thereof referred to on Schedule 4.16(b) (as such schedule may be
amended or supplemented from time to time), and (c) all Proceeds of the foregoing, including licenses, royalties, income, payments, claims, damages and proceeds of suit and the right to sue for past,
present and future infringements of any of the foregoing. 

        "Patent License" shall mean any and all agreements, whether written or oral providing for the grant by or to Grantor of any right to
manufacture, use or sell any invention covered by a Patent relating to production, property, plant and equipment, the operation thereof or the manufacturing processes, including, without limitation,
any thereof referred to on Schedule 4.16(b) (as such schedule may be amended or supplemented from time to time). 

        "Person" shall mean and include natural persons, corporations, limited partnerships, general partnerships, limited liability companies,
limited liability partnerships, joint stock companies, joint ventures, associations, companies, trusts, banks, trust companies, land trusts, business trusts or other organizations, whether or not
legal entities, and Governmental Authorities. 

        "Proceeds" shall mean: (i) all "proceeds" as defined in Article 9 of the UCC, and (ii) whatever is receivable or received when Collateral
or proceeds are sold, exchanged, collected or otherwise disposed of, whether such disposition is voluntary or involuntary. 

        "Receivables" shall have the meaning ascribed thereto in the definition of "Revolver Collateral." 

        "Record" shall have the meaning specified in Article 9 of the UCC. 

        "Related Contracts" shall have the meaning ascribed thereto in the definition of "Revolver Collateral." 

        "Revolver Collateral" shall mean all rights, title and interest to and under the following property, whether now owned by or owing to, or
hereafter acquired by or arising in favor of OSM, CF&I, Grantor or CWR (each, for purposes of this definition, a "grantor") (including under any trade
names, styles or derivations thereof), and whether owned or consigned by or to, or leased from or to, such grantor, and regardless of where located: 

          (i)  all
inventory (as defined in the Article 9 of the UCC) of such grantor, wherever located, including all such inventory sold by such grantor which is returned to or
repossessed by such 

4

 

grantor, and all Accessions thereto and Documents therefor (any and all such inventory, Accessions and Documents being the "Inventory"); 

        (ii)  all
(A) Accounts of such grantor arising from the sale of Inventory or services rendered by such grantor, (B) Chattel Paper and Instruments evidencing any right to
payment for Inventory sold or services rendered by such grantor, and (C) rights of such grantor now or hereafter existing in and to all security agreements and guaranties entered into by or on behalf
of the Account Debtors and securing or guaranteeing any such Accounts, Chattel Paper and Instruments (any and all such Accounts, Chattel Paper and Instruments being the
"Receivables", and any and all such security agreements and guaranties being the "Related Contracts"); 

        (iii)  all
books, records, writings, databases and other information (A) evidencing, embodying or listing any Inventory, Receivables or Related Contracts or (B) used in
connection with the sale of Inventory or the collection of amounts due under Receivables and Related Contracts; 

        (iv)  all
General Intangibles, such as, without limitation, all goodwill, trademarks, trade names, service marks, patents, copyrights, industrial designs, other industrial or
intellectual property or rights therein, whether under license or otherwise, payment intangibles, programs, software, software codes, computer systems, customer lists, programming material, books,
catalogs and other printed materials, publications, indexes, lists, data and other documents and papers relating thereto, blueprints, designs, charts, and research and development, whether on paper,
recorded electronically or otherwise (but excluding any Intellectual Property or other General Intangibles relating to production, property, plant and equipment, the operation thereof or the
production and manufacturing processes); 

        (v)  all
investment property (as defined in Article 9 of the UCC), including, without limitation, all stock or other equity interests (whether constituting investment
property or not) in material subsidiaries (other than Camrose, Camrose Pipe, Canadian National Steel, Oregon Feralloy and LSI Plate), all securities, whether certificated or uncertificated, security
entitlements, securities accounts, bank accounts, deposit accounts, cash collateral accounts, commodity contracts and commodity accounts, excluding the Note Collateral Account (as defined in the
Indenture); 

        (vi)  all
Supporting Obligations relating to the property described in clauses (i) through (v) above, including without limitation, letters of credit and guaranties issued in
support of Accounts, and all Instruments evidencing Intercompany Indebtedness; 

      (vii)  all
other personal property related to any of foregoing Revolver Collateral (except to the extent that such personal property constitutes real property or improvements
thereon, machinery and Equipment or other property and assets of the types described in (and not excluded from) Sections 2.1(a) through (l)); and 

      (viii)  all
products, offspring, rents, issues, profits, returns, income and Proceeds of and from any and all of the foregoing Revolver Collateral (including Proceeds which
constitute property of the types described in (and not excluded from) clauses (i) through (vii) of this definition), Proceeds deposited from time to time in any lock box or blocked account, and, to
the extent not otherwise included, all payments under insurance with respect to any of the foregoing Revolver Collateral (collectively, the "Revolver Collateral
Proceeds") (except to the extent that such Revolver Collateral Proceeds are invested in real property or improvements thereon, machinery and Equipment constituting personal
property or other property and assets of the types described in (and not excluded from) Sections 2.1(a) through (k)), or any indemnity, warranty or guarantee, payable by reason of loss or damage to,
or otherwise with respect to, any of the foregoing Revolver Collateral. 

        "Securities" shall have the meaning ascribed thereto in the recitals hereof. 

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        "Security Agreement" shall have the meaning ascribed thereto in the preamble. 

        "Supporting Obligations" shall mean all "supporting obligations" as defined in Article 9 of the UCC. 

        "TIA" shall mean the Trust Indenture Act of 1939 (15 U.S. Code §§ 77aaa-77bbbb) as in effect on the date of
this Security Agreement. 

        "Trademarks" shall mean (a) all registered and unregistered trademarks, trade names, corporate names, business names, fictitious business
names, internet domain names, trade styles, service marks, logos, slogans, certification marks, collective marks and other source or business identifiers, designs and general intangibles of a like
nature and the goodwill associated therewith, all registrations and recordings thereof, and all applications in connection therewith, whether in the United States Patent and Trademark Office or in any
similar office or agency of the United States, any State thereof or any other country or any political subdivision thereof, or otherwise relating to production, property, plant and equipment, the
operation thereof or the manufacturing processes, including, without limitation, any thereof referred to on Schedule 4.16(c) (as such schedule may be amended or supplemented from time to time), (b)
all renewals or extensions thereof, and (c) the right to sue for past, present and future infringement or dilution of any of the foregoing or for any injury to goodwill, and all proceeds of the
foregoing, including licenses, royalties, income, payments, claims, damages and proceeds of suit. 

        "Trademark License" shall mean any and all agreements, written or oral, providing for the grant by or to Grantor of any right to use any
Trademark relating to production, property, plant and equipment, the operation thereof or the manufacturing processes, including, without limitation, any thereof referred to on Schedule 4.16(c) (as
such schedule may be amended or supplemented from time to time). 

        "Trade Secret" shall mean (a) all trade secrets and all other confidential or proprietary information and know-how now or hereafter owned
or used in, or contemplated at any time for use in the business of Grantor relating to production, property, plant and equipment, the operation thereof or the manufacturing processes, and any
proprietary technology, process or system which is within the possession of Grantor, including, without limitation, manufacturing processes or methods, all formulae, processes, procedures, compounds,
drawings, designs, blue prints, surveys, reports, manuals, and operating standards relating to or used in the operation of Grantor's business, in each case, whether or not reduced to writing or other
tangible form, including all documents and things embodying, incorporating, or referring in any way to any of the foregoing and (b) the right to sue for past, present and future infringement of any of
the foregoing and all Proceeds of the foregoing, including licenses, royalties, income, payments, claims, damages and proceeds of suit. 

        "Trade Secret License" shall mean any and all agreements, written or oral, providing for the grant by or to Grantor of any right in or to
any Trade Secret relating to production, property, plant and equipment, the operation thereof or the manufacturing processes. 

        "Trustee" shall have the meaning ascribed thereto in the preamble. 

        "UCC" shall mean the Uniform Commercial Code as in effect from time to time in the State of New York or, when the context implies, the
Uniform Commercial Code as in effect from time to time in any other applicable jurisdiction. 

        "Work" shall mean any work which is or may be subject to copyright protection pursuant to Title 17 of the U.S. Code. 

        1.2    Interpretation.    References to "Articles," "Sections," "Schedules" and "Exhibits" shall be to Articles,
Sections, Schedules and Exhibits to this Security Agreement unless otherwise specifically provided herein. References to the words "herein," "hereof," "hereto" and "hereunder" and other words of
similar import refer to this Security Agreement as a whole and not to any particular Article, 

6

 

Section or other subdivision. Any of the terms defined herein may, unless the context otherwise requires, be used in the singular or the plural, depending on the reference. The use herein of the word
"include" or "including," when following any general statement, term or matter, shall not be construed to limit such statement, term or matter to the specific items or matters set forth immediately
following such word or to similar items or matters, whether or not nonlimiting language (such as "without limitation" or "but not limited to" or words of similar import) is used with reference
thereto, but rather shall be deemed to refer to all other items or matters that fall within the broadest possible scope of such general statement, term or matter. 

ARTICLE II 

GRANT
OF SECURITY INTERESTS 

        2.1    Security Grant.    As security for the prompt and complete payment and performance in full when due (whether at
Stated Maturity, upon redemption or required repurchase, by acceleration or otherwise) of all the Obligations, Grantor hereby grants, pledges, assigns and transfers to Trustee, for its individual
benefit and the ratable benefit of the Holders, a continuing security interest in and continuing lien on all of the right, title and interest of Grantor in, to and under the following property, in
each case, whether now owned or existing or hereafter acquired or arising, and wherever located (all of which being hereinafter collectively called the
"Collateral"): 

        (a)  all
Chattel Paper; 

        (b)  the
Note Collateral Account and all Trust Moneys, other moneys, securities, certificates, items and other property on deposit therein; 

        (c)  all
Contracts; 

        (d)  all
Intellectual Property; 

        (e)  all
Documents; 

        (f)    all
Equipment; 

        (g)  all
Fixtures; 

        (h)  all
General Intangibles; 

        (i)    all
Instruments; 

        (j)    all
Insurance; 

        (k)  (i)
all other rights to the payment of money, including rents and other sums payable to Grantor under leases, rental agreements and other Chattel Paper and insurance
proceeds; (ii) all Collateral Records; (iii) all Collateral Support; (iv) all Supporting Obligations; and (v) all Accessions and additions to, parts and appurtenances of, substitutions for and
replacements of any of the foregoing (provided, however, that for the avoidance of doubt, the foregoing
clauses (a) through (k) shall not include (A) any property or assets described in (and not excluded from) clauses (i) through (vi) of the definition of "Revolver Collateral" or (B) any Excluded
Collateral); and 

        (l)    to
the extent not otherwise included in the foregoing, all products, offspring, rents, issues, profits, returns, income and Proceeds of and from any and all of the
foregoing Collateral (including Proceeds
which constitute property of the type described in (and not excluded from) clauses (a) through (k) above and all collateral security and guarantees given by any Person with respect to any of the
foregoing, and in any event, including, without limitation, any and all (i) proceeds of any insurance (including, without limitation, all Net Proceeds), indemnity, warranty or guarantee payable to
Trustee or to Grantor from time to time with respect to any of the foregoing 

7

 

Collateral, (ii) payments (in any form whatsoever and including, without limitation, all Net Awards) made or due and payable to Grantor from time to time in connection with any requisition,
confiscation, condemnation, seizure or forfeiture of all or any part of the foregoing Collateral by any Governmental Authority (or any Person acting under color of a Governmental Authority), (iii)
products of the foregoing Collateral, and (iv) other amounts from time to time paid or payable under or in connection with any of the foregoing Collateral. 

ARTICLE III 

OBLIGATIONS

        3.1    Obligations.    This Security Agreement secures, and the Collateral is collateral and security for, the payment
and performance in full when due (whether at Stated Maturity, upon redemption or required repurchase, by acceleration or otherwise) of the principal of, premium, if any, and interest on, and any and
all other amounts which may at any time be or become payable by Grantor under the Guarantees and any and all other obligations and liabilities of Grantor to Trustee, any other trustee under any
Mortgage, and the Holders (including, without limitation, any and all amounts which may at any time be or become due and payable and any and all interest and Liquidated Damages, if any, accruing after
the maturity of the Securities and interest accruing after the filing of any petition in bankruptcy, or the commencement of any insolvency, reorganization or like proceeding, relating to Grantor,
whether or not a claim for post-filing or post-petition interest is allowed in such proceeding and interest, to the extent permitted by law, on the unpaid interest), whether direct or indirect,
absolute or contingent, due or to become due, or now existing or hereafter incurred, which may arise under, out of, or in connection with, this Security Agreement, any other Security Document, the
Notes, the Indenture, the Registration Rights Agreement, the Intercreditor Agreement or the Guarantees or any other document made, delivered or given in connection with any of the foregoing, in each
case whether on account of principal, premium, interest, Liquidated Damages (if any), fees, indemnities, costs, expenses or otherwise (including, without limitation, all fees and disbursements of
counsel to Trustee or to the Holders that are required to be paid by Grantor, Trustee, the trustee under any Mortgage or by any Secured Party pursuant to the terms of this Security Agreement, any
other Security Document, the Notes, the Indenture, the Registration Rights Agreement, the Intercreditor Agreement or the Guarantees or any other document entered into by Grantor in connection with any
of the foregoing) (collectively, the "Obligations"). 

ARTICLE IV 

REPRESENTATIONS
AND WARRANTIES 

        Grantor
hereby represents and warrants to Trustee (for the benefit of Trustee and the ratable benefit of the Holders), which representations and warranties shall survive execution and
delivery of this Security Agreement, as follows: 

        4.1    Validity, Perfection and Priority.    

        (a)  The
security interests in the Collateral granted to Trustee (for the benefit of Trustee and the ratable benefit of the Holders) hereunder constitute valid and continuing
first priority security interests in the Collateral (except with respect to Permitted Liens); 

        (b)  The
filings, registrations and recordings described on Schedule 4.1 constitute the only filings, registrations and recordings necessary to perfect the security interests
granted by Grantor to Trustee pursuant to this Security Agreement in respect of the Collateral (other than any non-U.S. Patents and other than non-U.S. patents with respect to which Grantor has no
present or future, direct or indirect obligation to perfect or assist in the perfection of a security interest therein) to the extent such security interests may be perfected by filing, registration
or recording. All such 

8

 

filings, registrations and recordings have been accomplished as of the date hereof (other than filings with the United States Patent and Trademark Office and the United States Copyright Office, each
of which shall be made as soon as possible after the execution hereof but in any event within thirty (30) days after the date hereof); and 

        (c)  Grantor
shall not execute or authorize to be filed in any public office any financing statement (or similar statement or instrument of registration under the law of any
jurisdiction) relating to the Collateral, except financing statements filed or to be filed (i) under the Indenture or this Security Agreement and (ii) in respect of Permitted Liens. 

        4.2    No Liens.    

        (a)  Grantor
owns and, as to all Collateral whether now existing or hereafter acquired, will continue to own, each item of the Collateral (or in the case of Collateral held
by Grantor as lessee under a lease,
Grantor has and will have a valid and subsisting leasehold interest in such Collateral) free and clear of any and all Liens, claims or other right, title or interest of all Persons except for
Permitted Liens; and 

        (b)  No
financing statement or other evidence of Lien covering or purporting to cover any of the Collateral is on file in any public office other than (i) financing
statements filed in connection with Permitted Liens and (ii) financing statements which have been filed in favor of Trustee pursuant to this Security Agreement. 

        4.3    Chief Executive Office.    The chief executive office of Grantor is located as set forth on Schedule 4.3 and
Grantor represents and warrants that it (i) has no place of business, (ii) has no offices where Grantor's books of account and records are kept, and (iii) currently uses no business or trade names,
except as set forth on Schedule 4.3. 

        4.4    Jurisdiction of Organization.    Grantor is a corporation organized under the laws of the State of Delaware.
Grantor's organizational identification number is 2299031, and Grantor's legal name is "New CF&I, Inc." 

        4.5    [INTENTIONALLY OMITTED].    

        4.6    Organization; Qualification.    Grantor (i) is a duly organized and validly existing corporation in good
standing under the laws of the State of Delaware, (ii) has the corporate power and corporate authority to own its property and assets and to transact the business in which it is engaged or presently
proposes to engage and (iii) is duly qualified and is authorized to do business and is in good standing as a foreign corporation in every jurisdiction in which it owns or leases real property or in
which the nature of its business requires it to be so qualified, except where any such failure to so qualify would not have, individually or in the aggregate, a Material Adverse Effect. 

        4.7    Corporate Power, Binding Obligation.    Grantor has the corporate power and corporate authority to execute,
deliver and carry out the terms and provisions of this Security Agreement including, without limitation, the right to grant a security interest in all the Collateral and has taken all necessary
corporate action to authorize the execution, delivery and performance by it of this Security Agreement. Grantor has duly executed and delivered this Security Agreement, and this Security Agreement
constitutes its legal, valid and binding obligation, enforceable in accordance with its terms, except as the enforceability thereof may be limited by bankruptcy, insolvency, fraudulent transfer or
conveyance, reorganization, moratorium and other similar laws relating to or affecting creditors' rights generally or by general equitable principles (whether considered in a proceeding in equity or
at law). 

        4.8    No Violation.    Neither the execution, delivery or performance by Grantor of this Security Agreement nor
compliance by it with the terms and provisions hereof (i) will violate in any material respects any
applicable provisions of any law, statute, rule, regulation, order, writ, injunction or decree of any court or Governmental Authority applicable to Grantor, (ii) will conflict or be inconsistent with 

9

 

or result in any breach of, any of the terms, covenants, conditions or provisions of, or constitute a default under, or result in the creation or imposition of (or the obligation to create or impose)
any Lien or encumbrance (except pursuant to this Security Agreement) upon any of the property or assets of Grantor pursuant to the terms of any indenture, mortgage, deed of trust, agreement or other
instrument to which Grantor is a party or by which it or any of its property or assets is bound or to which it may be subject, or (iii) will violate any provision of the certificate of incorporation
or by-laws of Grantor. 

        4.9    No Litigation.    There are no actions, suits, arbitrations or other proceedings pending or, to the knowledge
of Grantor, threatened with respect to this Security Agreement or the transactions contemplated hereby. 

        4.10    Prior Name.    Grantor has not conducted business under any other name other than as indicated on Schedule 4.3
during the last five (5) years. 

        4.11    Other Security Agreement.    Grantor has not within the last five (5) years become bound (whether as a result
of merger or otherwise) as debtor under a security agreement entered into by another Person, which has not heretofore been terminated, other than security agreements to the extent such security
agreements create no Liens other than Permitted Liens. 

        4.12    No Consents.    Except for the filings, registrations and recordings contemplated in Section 4.1(b) and as may
be required, in connection with the disposition of any investment property (as defined in Article 9 of the UCC), by laws generally affecting the offering and sale of securities, no consent of any
Person (including, without limitation, any stockholders or creditors of Grantor) and no consent, authorization, approval or other action by, and no notice to or filing with, any Governmental Authority
or regulatory body or other Person is required either (a) for the grant by Grantor of a security interest in the Collateral pursuant to this Security Agreement, for the perfection of such security
interest or for the authorization, execution, delivery or performance of this Security Agreement by Grantor or (b) except as may be provided in the Intercreditor Agreement and any amendment or
supplement thereto, for the exercise by Trustee of the rights and remedies provided for in this Security Agreement (whether specifically granted or created hereunder or created or provided for by
applicable law) in respect of the Collateral. 

        4.13    Farm Products.    None of the Collateral constitutes or will constitute Farm Products (as defined in Article 9
of the UCC), or is or will be the Proceeds of Farm Products. 

        4.14    All Information Accurate.    All information supplied by Grantor with respect to any of the Collateral (in
each case taken as a whole with respect to any particular Collateral) including, without limitation, the information set forth in the Schedules hereto, is accurate and complete in all material
respects. 

        4.15    Representations Regarding Contracts Constituting Collateral.    

        (a)  Each
Contract constituting Collateral is in full force and effect and constitutes a valid and legally enforceable obligation of Grantor and, to the best of Grantor's
knowledge, the other parties thereto, except as the enforceability thereof may be limited by bankruptcy, insolvency, fraudulent transfer or conveyance, reorganization, moratorium and other similar
laws relating to or affecting creditors' rights generally or by general equitable principles (whether considered in a proceeding in equity or at law) and except where unenforceability of any such
Contract constituting Collateral would not have, individually or in the aggregate, a Material Adverse Effect. 

        (b)  Neither
Grantor nor, to the best of Grantor's knowledge, any other party to any Contract constituting Collateral is in default in the performance or observance of any of
the terms thereof. 

        (c)  Grantor
has fully performed all of its material obligations under each Contract constituting Collateral. 

10

 

        (d)  The
right, title and interest of Grantor in, to and under each Contract constituting Collateral are not, to the best of Grantor's knowledge, subject to any defense,
offset, counterclaim or claim which would materially adversely affect the value of such Contract as Collateral, nor have any of the foregoing been asserted or alleged against Grantor as to any
Contract constituting Collateral. 

        (e)  No
amount payable to Grantor under or in connection with any Contract constituting Collateral is evidenced by any Instrument or Chattel Paper which has not been
delivered to Trustee. 

        4.16    Copyrights, Patents and Trademarks.    

        (a)  Schedule
4.16(a) includes all registrations and pending applications for Copyrights and Copyright Licenses owned by Grantor in its own name on the date hereof; 

        (b)  Schedule
4.16(b) includes all issued Patents and pending Patent applications and Patent Licenses owned by Grantor in its own name on the date hereof; 

        (c)  Schedule
4.16(c) includes all registrations and pending applications for Trademarks, Trademark Licenses and registered domain names owned by Grantor in its own name on
the date hereof; 

        (d)  to
the best of Grantor's knowledge, each Copyright, Patent and Trademark is on the date hereof valid, subsisting, unexpired, enforceable and has not been abandoned; 

        (e)  except
as set forth in any of Schedule 4.16(a), Schedule 4.16(b) or Schedule 4.16(c), none of such Copyrights, Patents and Trademarks is on the date hereof the subject
of any licensing or franchise agreement; 

        (f)    no
holding, decision or judgment has been rendered by any Governmental Authority which would limit, cancel or question the validity of any Copyright, Patent or Trademark
in any respect that could reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect; and 

        (g)  no
action or proceeding is pending or, to Grantor's knowledge, threatened on the date hereof (i) seeking to limit, cancel or question the validity of any Copyright,
Patent or Trademark, or (ii) which, if adversely determined, would have, individually or in the aggregate, a Material Adverse Effect or a material adverse effect on the value of any Copyright, Patent
or Trademark. 

ARTICLE V 

COVENANTS

        Grantor
covenants and agrees that from and after the date of this Security Agreement until this Security Agreement is terminated: 

        5.1    Further Assurances.    Grantor shall from time to time at the expense of Grantor, promptly execute, deliver,
file or record all further instruments, endorsements and other documents, and take such further action, as Trustee may deem reasonably desirable in obtaining the full benefits of this Security
Agreement and of the rights, remedies and powers herein granted, including, without limitation, the following: 

        (a)  The
filing of any financing statements, in form acceptable to Trustee under the UCC in effect in any jurisdiction, and the filing of a copy of this Security Agreement or
a short-form filing with the United States Patent and Trademark Office and/or the United States Copyright Office, with respect to the Liens and security interests granted hereby, except that Grantor
shall not be obligated, now or in the future, to directly or indirectly file or assist in the filing of any filings with 

11

 

respect to security interests in non-U.S. patents; and furnish to Trustee from time to time statements and schedules further identifying and describing the Collateral and such other reports in
connection with the Collateral as Trustee may request, all in reasonable detail and in form reasonably satisfactory to Trustee. Without limiting the generality of the foregoing, Grantor hereby
authorizes the filing of any financing statements or continuation statements, and amendments to financing statements, in any jurisdiction and with any filing offices as Trustee may determine, in its
sole discretion, are necessary or advisable to perfect the security interest granted to Trustee in connection herewith. Such financing statements may describe the Collateral in the same manner as
described in this Security Agreement or may contain an indication or description of Collateral that describes such property in any other manner as Trustee may determine, in its sole discretion, is
necessary, advisable or prudent to ensure the perfection of the security interest in the Collateral granted to Trustee in connection herewith, including, without limitation, describing such property
as "all assets" or "all personal property," whether now owned or hereafter acquired. A photocopy or other reproduction of this Security Agreement shall be sufficient as a financing statement and may
be filed in lieu of the original to the extent permitted by applicable law. Grantor shall pay or reimburse Trustee for all filing fees and related expenses. 

        (b)  If
Grantor shall obtain any additional Collateral, Grantor shall furnish to Trustee a Security Supplement substantially in the form attached hereto as Exhibit A
describing such Collateral. 

        5.2    Change of Name, Identity, Corporate Structure or Location.    Grantor shall not change its name, identity,
corporate structure or the location of its chief executive office from the addresses set forth on Schedule 4.3, without (i) giving Trustee at least thirty (30) days' prior written notice clearly
describing such new name, identity, corporate structure or new location and providing such other information in connection therewith as Trustee may reasonably request, (ii) taking all action
satisfactory to Trustee as Trustee may reasonably request to maintain the security interest of Trustee in the Collateral intended to be granted hereby at all times as a fully perfected first priority
security interest (subject to Permitted Liens), and (iii) delivering to Trustee an Officers' Certificate as to compliance with this Section 5.2. 

        5.3    Change of Jurisdiction of Organization.    Grantor shall not change its jurisdiction of organization until (i)
it shall have given to Trustee not less than thirty (30) days' prior written notice of its intention to do so, identifying such new proposed jurisdiction of organization and providing such other
information in connection therewith as Trustee may reasonably request, (ii) with respect to such change of jurisdiction of organization, it shall have taken all action as requested by Trustee that
Trustee may find necessary or advisable to maintain the continuous validity, perfection and first priority status (subject to Permitted Liens), of the security interest of Trustee in the Collateral
intended to be granted and agreed to
hereby, and (iii) it shall have delivered to Trustee an Officers' Certificate as to compliance with this Section 5.3. 

        5.4    Maintain Records.    Grantor shall keep and maintain at its own cost and expense satisfactory and complete
records of the Collateral at the locations for books and records indicated on Schedule 4.3 and shall stamp or otherwise mark such books and records in a manner as may be necessary or as Trustee may
reasonably require in order to reflect the security interests granted by this Security Agreement. 

        5.5    Payment of Obligations.    Grantor shall pay before delinquency all taxes, assessments and governmental charges
or levies imposed upon the Collateral, as well as all claims of any kind (including, without limitation, claims for labor, materials, supplies and services) against or with respect to the Collateral,
except that no such tax, assessment, levy, charge or claim need be paid if (i) the validity thereof is being contested in good faith by appropriate proceedings, (ii) such proceedings do not involve,
in the sole opinion of Trustee, any material danger for the sale, forfeiture or loss of any of 

12

 

the Collateral or any interest therein, (iii) such charge is adequately reserved against on Grantor's books in accordance with generally accepted accounting principles, and (iv) the failure to pay
any such charge does not result in the imposition of a Lien against the Collateral other than Permitted Liens. 

        5.6    Negative Pledge.    Without the consent of Trustee, Grantor (a) shall not create, incur or permit to exist, (b)
shall defend the Collateral against, and (c) shall take such other action as is necessary to remove, in each case, any Lien or claim on or to the Collateral, other than the Permitted Liens. 

        5.7    Compliance with Laws.    Grantor shall comply in all material respects with all requirements of law applicable
to the Collateral or any part thereof or to the operation of Grantor's business. 

        5.8    No Impairment; Defense of Collateral.    Grantor (a) shall not take or permit to be taken any action which
could reasonably be expected to impair Trustee's rights hereunder or in the Collateral, including the creation or existence of any Lien upon or with respect to any of the Collateral, except Permitted
Liens and (b) shall defend the Collateral against all Persons at any time claiming any interest therein, except the holders of Permitted Liens with respect to such Permitted Liens. 

        5.9    No Transfer of Collateral.    Grantor shall not sell, transfer or assign (by operation of law or otherwise) any
Collateral without the consent of the Trustee other than as permitted by the Indenture. 

        5.10    Delivery of Instruments and Chattel Paper.    If any amount in excess of $150,000 payable under or in
connection with any of the Collateral shall be or become evidenced by any Instrument or Chattel Paper, such Instrument or Chattel Paper shall be promptly delivered to Trustee, duly endorsed in a
manner satisfactory to Trustee, to be held as Collateral pursuant to this Security Agreement; provided that if within any twelve month period Grantor
shall receive Instruments or Chattel Paper representing amounts payable, in the aggregate, greater than $250,000, under or in connection with any of the Collateral, then all Instruments or Chattel
Paper evidencing any amounts payable under or in connection with any of the Collateral in the possession of Grantor shall be promptly delivered to Trustee, duly endorsed in a manner satisfactory to
Trustee, to be held as Collateral pursuant to this Security Agreement. 

        5.11    Inspections.    Grantor shall permit representatives of Trustee, upon reasonable notice and at any time during
normal business hours, to inspect and make abstracts from its books and records pertaining to the Collateral, and shall permit representatives of Trustee to be present at Grantor's place of business
to receive copies of all communications and remittances relating to the Collateral, all in such manner as Trustee may reasonably require. 

        5.12    Insurance.    Grantor shall maintain at all times and at its sole expense, with financially sound and
reputable insurance companies, insurance policies (i) insuring the Equipment against loss by fire, explosion, theft and such other casualties as from time to time would be insured against by a prudent
operator of similar property and (ii) insuring Trustee and the Holders against liability for personal injury and property damage relating to such Equipment, such policies to be in such form and
amounts and having such coverage as from time to time would be maintained by a prudent operator of similar property. Each policy or certificate with respect to such insurance shall be endorsed for the
benefit of Trustee (including, without limitation, by naming Trustee as an additional named insured or loss payee as its interest may appear) and such policy or certificate shall be retained by
Grantor and a copy or copies of such policy or certificate shall be delivered to Trustee annually together with the Officers' Certificate required to be delivered to Trustee within 90 days after the
end of each fiscal year of Grantor pursuant to Section 4.06(a) of the Indenture. Each such policy or a certificate issued to Trustee in respect thereof shall state that such policy cannot be cancelled
without thirty (30) days' prior written notice to Trustee. At least thirty (30) days prior to the expiration of any such policy of insurance, Grantor shall provide documentation to Trustee that
Grantor is negotiating an extension or renewal of such policy and shall at least five (5) Business Days prior to expiration of any such policy of 

13

 

insurance obtain an extension or renewal policy and an insurance certificate evidencing such renewal or extension and shall give Trustee written notice thereof. If Grantor shall fail to insure such
Collateral in accordance with the provisions hereof or if Grantor shall fail to so endorse or to extend or renew, any such insurance policies or certificates with respect thereto, Trustee shall have
the right (but shall be under no obligation), to advance funds to procure, renew or extend such insurance (after providing Grantor with at least five (5) Business Days' notice of its intent to advance
such funds) and Grantor agrees to reimburse Trustee for any and all costs and expenses thereof, with interest on all such funds from the date advanced at the rate per annum (the
"Default Rate") equal to the rate then payable under the Securities. Within five (5) Business Days after making any such advance, Trustee shall give
Grantor written notice of the amount and purpose of such advance; provided, however, that failure to
give such notice will not relieve Grantor of its obligations to make such reimbursement to Trustee. Unless an Event of Default under the Indenture shall have occurred and shall be continuing, Grantor
may determine whether to file a claim for repair or replacement costs or a claim for actual cash value under the relevant insurance policy. Any proceeds of insurance in respect of the Collateral are
hereby assigned to Trustee. In case of any loss or damage to any of the Collateral, all proceeds of insurance maintained by Grantor in respect of the Collateral shall be paid to Trustee as Trust
Moneys pursuant to the Indenture and shall be subject to retention and disbursement by Trustee in accordance with the
terms of the Indenture. The provisions of this Section 5.12 shall not be deemed to limit Grantor's obligations to maintain insurance (or any related obligations) pursuant to any Mortgage or other
Security Document. 

        5.13    Notices.    Grantor shall advise Trustee promptly, in reasonable detail, of: 

        (a)  any
Lien (other than security interests created hereby or Permitted Liens) on any of the Collateral; and 

        (b)  the
occurrence of any other event which could reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect. 

        5.14    Fair Labor Standards Act.    Any goods now or hereafter produced by Grantor or any of its subsidiaries
included in the Collateral have been and will be produced in compliance with the requirements of the Fair Labor Standards Act, as amended. 

        5.15    Covenants Regarding Contracts Constituting Collateral.    

        (a)  So
long as it is commercially reasonable to do so, Grantor shall perform and comply in all material respects with all of its obligations under the Contracts constituting
Collateral, provided, however, that any such non-performance or non-compliance shall not reasonably be
expected to have, individually or in the aggregate, a Material Adverse Effect. 

        (b)  Grantor
shall not amend, modify, terminate or waive any provision of any Contract in any manner which could reasonably be expected to materially adversely affect the
value of the Collateral taken as a whole; provided that the Company may replace a Contract (the "Initial
Contract") so long as (i) the contract entered into to replace the Initial Contract (the "Replacement Contract") is subject to
the security interest created by this Security Agreement and (ii) the Replacement Contract is on no materially less favorable terms to the Company than the Initial Contract. 

        (c)  Grantor
shall, in its prudent business judgment, exercise promptly and diligently each and every material right which it may have under each Contract;  provided Grantor may amend, modify, terminate or waive
rights subject to Section 5.15(b) above. 

        (d)  Grantor
shall deliver to Trustee a copy of each material demand, notice or document received by it relating in any way to any Contract. 

14

  

        (e)  In
any suit, proceeding or action brought by Trustee or any Holder under any Contract, Grantor shall save, indemnify and keep Trustee and such Holder harmless from and
against any and all expenses, losses, claims, liabilities and damages, as incurred, suffered by reason of any defense, setoff, counterclaim, recoupment or reduction or liability whatsoever of the
obligor thereunder, arising out of a breach by Grantor of any obligation thereunder or arising out of any other agreement, indebtedness or liability at any time owing to or in favor of such obligor or
its successors from Grantor. 

ARTICLE VI 

OBLIGATIONS
OF GRANTOR RELATING TO INTELLECTUAL PROPERTY 

        6.1    Intellectual Property.    

        (a)  If
Grantor, either by itself or through any agent, employee, licensee or designee shall file any applications or registrations with respect to any Intellectual Property
with the United States Patent and Trademark Office and/or the United States Copyright Office, or any similar office or agency in any other country or any political subdivision thereof, Grantor shall
notify Trustee thereof within thirty (30) days of filing such application or registration. Grantor shall execute and deliver to Trustee any document required or reasonably requested by Trustee to
acknowledge, confirm, register, record, or perfect Trustee's security interest in any part of the Intellectual Property, whether now owned or hereafter acquired, and Grantor shall deliver an Officers'
Certificate as to compliance with this Section 6.1(a); provided that Grantor shall not be obligated to make any present or future, direct or indirect filings of any kind to perfect such security
interest in non-U.S. patents. 

        (b)  Grantor
shall not do any act or omit to do any act whereby any of the Intellectual Property which is material to the business of Grantor may lapse, or become abandoned,
dedicated to the public, or unenforceable, or which would adversely affect the validity, grant, or enforceability of the security interest granted herein. 

        (c)  With
respect to any Trademarks which are material to its business, Grantor (i) shall maintain such Trademarks in full force free from any claim of abandonment or
invalidity for non-use, (ii) shall not fail to maintain the level of the quality of products sold and services rendered under any of such Trademarks at a level at least substantially consistent with
the quality of such products and services as of the date hereof, (iii) shall not fail to employ each material Trademark with the appropriate notice of registration, or (iv) shall not fail to do any
act or knowingly omit to do any act (or permit a licensee or sublicensee to act or knowingly omit to act) whereby such Trademark may become invalidated. Grantor shall take all steps necessary to
insure that licensees and sublicenses of such Trademarks use such consistent standards of quality. 

        (d)  Grantor
shall notify Trustee promptly if it knows (i) that any application or registration relating to any Intellectual Property which is material to the business of
Grantor may become abandoned, dedicated or injected into the public domain, (ii) of any materially adverse determination or development (including, without limitation, the institution of, or any such
determination or development in, any proceeding in the United States Patent and Trademark Office or any court or tribunal in any country) regarding Grantor's ownership of any Patent or Trademark
material to the business of Grantor or its right to register the same or to keep and maintain the same, and (iii) of any action Grantor is taking in respect of such event. 

        (e)  Grantor
shall take all reasonable and necessary steps, including, without limitation, in any proceeding before the United States Patent and Trademark Office, or any
similar office or agency in any other country or any political subdivision thereof, to maintain and pursue each application (and to obtain the relevant registration) and to maintain each registration
of the Patents and 

15

 

Trademarks material to the business of Grantor, including, without limitation, the filing of applications for renewal, affidavits of use and affidavits of incontestability and, as to Patents, the
payment of maintenance fees, except where the failure to take any such action would not have, individually or in the aggregate, a Material Adverse Effect. 

        (f)    Grantor
(either itself or through licensees) (i) shall employ the appropriate notice of copyright for each published Work subject to copyright protection to the extent
necessary to protect the Copyright relating to such Work and (ii) shall not (and not permit any licensee or sublicensee thereof to) do any act or knowingly omit to do any act whereby any material
Copyright may become invalidated, except where the failure to take such action would not have, individually or in the aggregate, a Material Adverse Effect. 

        (g)  Grantor
shall take all reasonable and necessary steps, as it shall deem appropriate under the circumstances, in accordance with its reasonable business judgment, to
maintain and pursue each application (and to obtain the relevant registration) and to maintain to the extent permitted by law each registration of each material Copyright owned by Grantor including,
without limitation, filing of applications for renewal, where necessary. 

        (h)  If
Grantor shall obtain any rights to any new invention (whether or not patentable), Trade Secret, Trademark, Trademark License, Copyright, Copyright License, Patent or
Patent License, then, to the extent that any item enumerated in this sentence would constitute Collateral, the provisions of this Security Agreement shall automatically apply thereto and any such item
shall automatically constitute Collateral and shall be subject to the assignment, Lien and security interest created hereby without further action by any party. Grantor promptly shall (x) give to
Trustee written notice of its acquisition of or entitlement to any of the rights set forth in the immediately preceding sentence and (y) confirm the attachment of the Lien and security interest
created hereby to any of such rights by execution of an appropriate instrument delivered to Trustee, including an amendment to Schedules 4.16(a), 4.16(b) and/or 4.16(c) to include any such rights, and
shall, if applicable, make such filings, registrations and recordings as are necessary or appropriate to perfect such security interests; provided that
Grantor shall not be obligated to make any present or future, direct or indirect filings of any kind to perfect such security interests in any non-U.S. Intellectual Property. 

        (i)    In
the event that any Intellectual Property owned by or exclusively licensed to Grantor is infringed upon, misappropriated, or diluted by a third party, Grantor shall
promptly take all actions as Grantor shall reasonably deem appropriate under the circumstances to protect its rights in such Intellectual Property including, but not limited to, the initiation of a
suit for injunctive relief and to recover damages. If such Intellectual Property is of material economic value, Grantor shall promptly notify Trustee after it learns thereof and sue for infringement,
misappropriation or dilution, seek injunctive relief where appropriate and seek and recover any and all damages for such infringement, misappropriation or dilution. 

        (j)    Anything
contained herein to the contrary notwithstanding, Trustee shall have the right (but not the obligation) to bring suit or otherwise commence any action or
proceeding in the name of Grantor, Trustee or otherwise, in Trustee's reasonable discretion, to enforce any Intellectual Property, in which event Grantor shall, at the request of Trustee, do any and
all lawful acts and execute any and all documents required by Trustee in aid of such enforcement and Grantor shall promptly, upon demand, reimburse and indemnify Trustee as provided in Section 9.1
hereof in connection with the exercise of its rights under this Section 6.1, and, to the extent that Trustee shall elect not to bring suit to enforce any Intellectual Property as provided in this
Section 6.1, Grantor agrees to use all reasonable measures, whether by action, suit, proceeding or otherwise, to prevent the infringement of any of the Intellectual Property by others and for that
purpose agrees 

16

 

to diligently maintain any action, suit or proceeding against any Person so infringing as shall be necessary to prevent such infringement. 

        (k)  Grantor
hereby grants to Trustee a transferable and sublicensable non-exclusive worldwide license (exercisable without payment of royalty or other compensation by
Trustee) to use, operate under, and make, have made, use, import and sell products or services embodying or made in accordance with any Intellectual Property now or hereafter owned, licensed to, or
otherwise acquired by Grantor ("Grantor Intellectual Property"), and/or to reproduce, perform, display, distribute, and modify Grantor Intellectual
Property effective upon the occurrence of an Event of Default. The foregoing license shall be irrevocable and perpetual. If the Obligations are repaid by Grantor in the ordinary course and in any
event prior to a bankruptcy or insolvency proceeding involving Grantor and other than through the
exercise by Grantor of any of its rights and remedies hereunder, then such license shall terminate and have no further force and effect. 

        (l)    Grantor
and Trustee may modify this Security Agreement, without the consent of Holders, by amending Schedules 4.16(a), 4.16(b) and/or 4.16(c) to include any future
Intellectual Property of Grantor in accordance with Section 6.1(h) or to reflect any disposition of Intellectual Property made in compliance with the provisions of this Security Agreement and the
Indenture. 

        (m)  Except
in the ordinary course of business consistent with prudent business practice, and as may otherwise be permitted by the Indenture, Grantor shall not, without the
prior written consent of Trustee, abandon any registration of any Intellectual Property or any right to file an application with respect to Intellectual Property or any pending application with
respect to Intellectual Property. 

        (n)  Grantor
shall not, without the consent of Trustee, license the Intellectual Property or any portion thereof, or amend or permit the amendment of any of the Licenses, in
either case, in a manner that adversely affects the right to receive any material amount of payments thereunder, or, except as otherwise permitted under the Indenture, in any manner materially adverse
to the interests of Trustee in the Intellectual Property. 

        (o)  Subject
to Section 6.1(n) but notwithstanding any other provision herein to the contrary, so long as no Event of Default shall have occurred and be continuing, Grantor
shall be permitted to exploit, use, enjoy, protect, license, sublicense, assign, sell, dispose of or take other actions with respect to the Intellectual Property in the ordinary course of the business
of Grantor. 

ARTICLE VII 

POWER
OF ATTORNEY 

        7.1    Power of Attorney.    Grantor hereby irrevocably constitutes and appoints Trustee and any officer of Trustee,
with full power of substitution, as its true and lawful attorney-in-fact with full irrevocable power and authority in the place and stead of Grantor and in the name of Grantor or in its own name, from
time to time after the occurrence and during the continuation of an Event of Default, for the purpose of carrying out the terms of this Security Agreement, to take any and all appropriate action by
any technologically available means, which may include, without limitation, any form of electronic data transmission, and to execute in any appropriate manner, which may include, without limitation,
using any symbol that Trustee may adopt to signify Grantor's intent to authenticate, any and all documents
and instruments which may be necessary or desirable to accomplish the purposes of this Security Agreement. Without limiting the generality of the foregoing, Grantor hereby authorizes Trustee: 

        (a)  to
file a Record or Records, including, without limitation, financing or continuation statements, and amendments thereto, in all jurisdictions and with all filing
offices as Trustee may determine, in its reasonable discretion, are necessary or advisable to perfect the security interest 

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granted to Trustee for its benefit and the ratable benefit of the Holders herein; such financing statements may describe the Collateral in the same manner as described herein or may contain an
indication or description of collateral that describes such property in any other manner as Trustee may determine, in its reasonable discretion, is necessary, advisable or prudent to ensure the
perfection of the security interest in the Collateral granted to Trustee herein; Grantor shall furnish to Trustee from time to time statements and schedules further identifying and describing the
Collateral and such other reports in connection with the Collateral as Trustee may reasonably request, all in reasonable detail; 

        (b)  in
the name of Grantor or its own name, or otherwise, take possession of and endorse and collect any checks, drafts, notes, acceptances or other instruments for the
payment of moneys due under any Contract or with respect to any other Collateral and file any claim or take any other action or proceeding in any court of law or equity or otherwise deemed appropriate
by Trustee for the purpose of collecting any and all such moneys due under any Contract or with respect to any other Collateral whenever payable; 

        (c)  in
the case of any Copyright, Patent or Trademark, execute and deliver any and all agreements, instruments, documents and papers as Trustee may request to evidence
Trustee's and the Holders' security interest in such Copyright, Patent or Trademark and the goodwill and General Intangibles of Grantor relating thereto or represented thereby; 

        (d)  execute,
in connection with any sale provided for in Article VIII, any other sale of Collateral pursuant to this Security Agreement or any license or sublicense granted
pursuant to Article VIII, any endorsements, assignments or other instruments of conveyance or transfer with respect to the Collateral; and 

        (e)  (i)
direct any party liable for any payment under any of the Collateral to make payment of any and all moneys due or to become due thereunder directly to Trustee or as
Trustee shall direct; (ii) ask or demand for, collect, receive payment of and receipt for, any and all moneys, claims and other amounts due or to become due at any time in respect of or arising out of
any Collateral; (iii) sign and endorse any invoices, freight or express bills, bills of lading, storage or warehouse receipts, drafts against debtors, assignments, verifications, notices and other
documents in connection with any of the Collateral; (iv) commence and prosecute any suits, actions or proceedings at law or in equity in any court of competent jurisdiction to collect the Collateral
or any portion thereof and to enforce any other right in respect of any Collateral; (v) defend any suit, action or proceeding brought against Grantor with respect to any Collateral; (vi) settle,
compromise or adjust any such suit, action or proceeding and,
in connection therewith, to give such discharges or releases as Trustee may deem appropriate; (vii) assign, license or sublicense any Intellectual Property (along with the goodwill of the business to
which any such Intellectual Property pertains), throughout the world for such term or terms, on such conditions, and in such manner, as Trustee shall determine; (viii) generally, sell, transfer,
pledge and make any agreement with respect to or otherwise deal with any of the Collateral as fully and completely as though Trustee were the absolute owner thereof for all purposes; and (ix) at
Trustee's option and Grantor's expense, at any time, or from time to time, do all acts and things which Trustee deems necessary to protect, preserve or realize upon the Collateral and Trustee's and
the Holders' security interests therein and to effect the intent of this Security Agreement, all as fully and effectively as Grantor might do; and 

        (f)    notwithstanding
the foregoing, at any time prior to or after the occurrence of an Event of Default, pay or discharge taxes and Liens (which do not constitute Permitted
Liens) levied or placed on or threatened against the Collateral or effect any repairs on the Collateral. 

        7.2    Irrevocable Grant.    The foregoing grant of authority is a power of attorney coupled with an interest and such
appointment shall be irrevocable until this Security Agreement is terminated and the 

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security interests created hereby are released. Grantor hereby ratifies all that such attorneys may lawfully do or cause to be done by virtue and in accordance with the terms hereof. 

ARTICLE VIII 

REMEDIES;
RIGHTS UPON DEFAULT 

        8.1    Rights and Remedies Generally.    If an Event of Default shall occur and be continuing, then and in every such
case, Trustee shall have all the rights of a secured party under the UCC (including, without limitation, the right to sell all or any portion of the Collateral in one or more parcels at public or
private sale, for cash or credit, or for future delivery and upon such terms as Trustee may determine), shall have all rights now or hereafter existing under all other applicable laws, and, subject to
any mandatory requirements of applicable law then in effect, shall have all the rights set forth in this Security Agreement. 

        8.2    Notice to Obligors and Contract Parties.    Upon the request of Trustee at any time after the occurrence and
during the continuance of an Event of Default, Grantor shall notify parties to the Contracts constituting Collateral and Account Debtors in respect of any General Intangibles, Instruments and Chattel
Paper constituting Collateral that such Collateral has been assigned to Trustee for the ratable benefit of the Holders and that payments in respect thereof shall be made directly to Trustee. 

        8.3    Proceeds to be Turned Over to Trustee.    All proceeds of any Collateral received by Grantor consisting of
cash, checks and other near-cash items (collectively, "Cash Proceeds") shall be held by Grantor in trust for Trustee, segregated from other funds of
Grantor, and shall, forthwith upon receipt by Grantor be turned over to Trustee in the exact form received by Grantor (duly endorsed by Grantor to Trustee, if required) and held by Trustee in the Note
Collateral Account, which shall be maintained under the sole dominion and control of Trustee. Any Cash Proceeds received by Trustee (whether from Grantor or otherwise): (i) if no Event of Default
shall have occurred and be continuing, shall be held by Trustee as collateral security for the Obligations (whether matured or unmatured) unless and until delivered to Grantor as provided in the
Indenture, and (ii) if an Event of Default shall occur and be continuing, may, in the sole discretion of Trustee, (A) be held by Trustee as collateral security for the Obligations (whether matured or
unmatured) and/or (B) then or at any time thereafter may be applied by Trustee, in accordance with the Indenture, for the payment of any expenses incurred by Trustee in enforcing its rights under this
Security Agreement. Notwithstanding the foregoing, this Section 8.3 shall not apply to Cash Proceeds received by Grantor in the ordinary course of business prior to the occurrence and continuance of
an Event of Default or to proceeds of any Revolver Collateral. All Proceeds while held by Trustee in the Note Collateral Account (or by Grantor in trust for Trustee and the Holders) shall continue to
be held as collateral security for the Obligations and shall not constitute payment thereof until applied as provided in Section 8.11. 

        8.4    Obtaining Possession of the Collateral.    If an Event of Default shall occur and be continuing, then and in
every such case, Trustee may, but shall not be obligated to, in addition to any other action permitted by law (and not limited in any manner to the remedies contained in the Notes and the Indenture)
take one or more of the following actions: 

        (i)    personally,
or by agents or attorneys, immediately take possession of the Collateral or any part thereof, from Grantor or any other Person who then has possession of any
part thereof with or without notice of process of law, and for that purpose may enter upon Grantor's premises where any of the Collateral is located and remove such Collateral and, in connection with
such removal, use any and all services, supplies, aids and other facilities of Grantor; 

19

 

        (ii)  sell,
assign or otherwise liquidate, or direct Grantor to sell, assign or otherwise liquidate, any or all investments made in whole or in part with the Collateral or
any part thereof, and take possession of the proceeds of any such sale, assignment or liquidation; and 

        (iii)  take
possession of the Collateral or any part thereof, by directing Grantor in writing to deliver the same to Trustee at any commercially reasonable place or places
which Trustee shall reasonably select, in which event Grantor shall at its own expense: (A) forthwith cause the same to be moved to the place or places so designated by Trustee and there delivered to
Trustee; (B) store and keep any Collateral so delivered to Trustee at such place or places pending further action by Trustee; and (C) while the
Collateral shall be so stored and kept, provide such guards and maintenance services as shall be reasonably necessary to protect the same and to preserve and maintain them in good condition. 

Grantor's
obligation to deliver the Collateral is of the essence in this Security Agreement. Upon application to a court of equity having jurisdiction, Trustee shall, to the extent permitted by law,
be entitled to a decree requiring specific performance by Grantor of such obligation. 

        8.5    Disposition of Collateral.    Trustee will give Grantor reasonable notice of the time and place of any public
sale of the Collateral or any part thereof or of the time after which any private sale or any other intended disposition thereof is to be made. Grantor agrees that the requirements of reasonable
notice to it shall be met if such notice is delivered (personally, by facsimile transmission or by overnight delivery service) to its address specified in Section 9.4 (or such other address that
Grantor may provide to Trustee in writing) at least ten (10) Business Days before the time of any public sale or after which any private sale may be made. 

        8.6    Additional Non-UCC Remedies.    Upon the occurrence and during the continuance of an Event of Default, Trustee,
without demand of performance or other demand, presentment, protest, advertisement or notice of any kind (except as provided in Section 9.5 and except for any notice required by law referred to below)
to or upon Grantor or any other Person (all and each of which demands, defenses, advertisements and notices are, to the extent permitted by law, hereby waived), may in such circumstances forthwith
collect, receive, appropriate and realize upon the Collateral, or any part thereof, and/or may forthwith sell, lease, assign, give option or options to purchase, or otherwise dispose of and deliver
the Collateral or any part thereof (or contract to do any of the foregoing), in one or more parcels at public or private sale or sales, at any exchange, broker's board or office of Trustee or
elsewhere upon such terms and conditions as Trustee may deem advisable and at such prices as Trustee may elect, for cash or on credit or for future delivery without assumption of any credit risk.
Trustee or any Holder shall have the right, to the extent permitted by law, upon any such public sale or sales or upon any such private sale or sales, to purchase the whole or any part of the
Collateral so sold, free of any right or equity of redemption in Grantor (including any rights of stay and/or appraisal), which right or equity is, to the extent permitted by law, hereby waived or
released. Grantor hereby waives any claims against Trustee arising by reason of the fact that the price at which any Collateral may have been sold at such a private sale was less than the price which
might have been obtained at a public sale, even if Trustee accepts the first offer received and does not offer such Collateral to more than one offeree. Grantor further agrees, at Trustee's request,
to assemble the Collateral and make it available to Trustee at places which Trustee shall reasonably select, whether at Grantor's premises or elsewhere. Trustee shall apply the net proceeds of any
action taken by it pursuant to this Section 8.6, after deducting all reasonable costs and expenses of every kind incurred in connection therewith or incidental to the care or safekeeping of any of the
Collateral or in any way relating to the Collateral or the rights of Trustee and the Holders hereunder, including, without limitation, reasonable attorneys' fees and disbursements, as provided in
Section 8.11, and only after such application and after the payment by Trustee of any other amount required by any provision of law, need Trustee account for the surplus, if any, to Grantor. Grantor
further agrees that a breach of any of the covenants contained in this Article VIII will cause irreparable injury to Trustee, that Trustee has no adequate remedy at law in 

20

 

respect of such breach and, as a consequence, that each and every covenant contained in this Article VIII shall be specifically enforceable against Grantor, and Grantor hereby waives and agrees not
to
assert any defenses against an action for specific performance of such covenants except for a defense that no default has occurred giving rise to the Obligations becoming due and payable prior to
their stated maturities. Nothing in this Article VIII shall in any way alter the rights of Trustee under this Security Agreement. 

        8.7    Certain Sales of Collateral.    Grantor recognizes that, by reason of certain prohibitions contained in law,
rules, regulations or orders of any Governmental Authority, Trustee may be compelled, with respect to any sale of all or any part of the Collateral, to limit purchasers to those who meet the
requirements of such Governmental Authority. Grantor acknowledges that any such sales may be at prices and on terms less favorable than those obtainable through a public sale without such
restrictions, and, notwithstanding such circumstances, agrees that any such restricted sale shall not be deemed, solely by virtue thereof, not to have been made in a commercially reasonable manner. 

        8.8    Certain Remedies in Respect of Intellectual Property.    If an Event of Default shall occur and shall be
continuing, in addition to the other rights and remedies provided for herein or otherwise available to it, Trustee may license or sublicense (whether general, special or otherwise, and whether on an
exclusive or non-exclusive basis) all or any portions of the Intellectual Property throughout the world for such term or terms, on such conditions and in such manner as Trustee shall determine. Upon
request by Trustee, Grantor shall execute and deliver to Trustee any powers of attorney, in form and substance satisfactory to Trustee, for the implementation of any assignment, license, sublicense,
grant of option, sale or other disposition of any Intellectual Property. In the event of any sale, assignment, or other disposition of any of the Intellectual Property, the goodwill connected with and
symbolized by the Intellectual Property subject to such disposition shall be included in such sale, assignment or other disposition. 

        8.9    Specific Performance.    In addition to any of the other rights and remedies hereunder, Trustee shall have the
right to institute a proceeding seeking specific performance in connection with any of the agreements or obligations hereunder. 

        8.10    Recourse.    Grantor shall remain liable for any deficiency if the proceeds of any sale or other disposition
of the Collateral are insufficient to satisfy the Obligations. Grantor shall also be liable for all expenses of Trustee or any Holder incurred in connection with collecting such deficiency, including,
without limitation, the fees and disbursements of any attorneys employed by Trustee to collect such deficiency. 

        8.11    Application of Proceeds.    The net proceeds received by Trustee in respect of any sale of, collection from or
other realization upon all or any part of the Collateral pursuant to the exercise by Trustee of its remedies provided in this Article VIII shall be applied (after deduction of amounts permitted or
required pursuant to this Article VIII), together with any other sums then held by Trustee pursuant to this Security Agreement, promptly by Trustee in the manner set forth in the Indenture. 

        8.12    Expenses; Attorneys Fees.    Grantor shall upon demand pay to Trustee the amount of any and all reasonable
expenses, including the reasonable fees and expenses of its counsel and the reasonable fees and expenses of any experts and agents which Trustee may incur in connection with (i) the collection of the
Obligations, (ii) the enforcement and administration of this Security Agreement and any consent, amendment, waiver or other modification to this Security Agreement, (iii) the custody or preservation
of, or the sale of, collection from, or other realization upon, any of the Collateral, (iv) the exercise, protection or enforcement of any of the rights of Trustee or any other secured party
hereunder, (v) the failure by Grantor to perform or observe any of the provisions hereof, (vi) the creation and perfection of Liens in favor of the Trustee for the benefit of the Holders, including,
without limitation, the filing or recording of financing statements and other documents (including all taxes in connection therewith) in public offices, search fees and the reasonable fees, expenses
and 

21

 

disbursements of any counsel providing any opinions in respect of the Collateral or the Liens created pursuant to the Security Documents, (vii) the payment or discharge of any taxes, insurance
premiums or encumbrances, (viii) defending or prosecuting any actions or proceedings arising out of or related to the transactions to which this Security Agreement relates, (ix) otherwise protecting,
maintaining or preserving the Collateral, or the enforcing, foreclosing, retaking, holding, storing, processing, selling or otherwise realizing upon the Collateral and Trustee's security interest
therein, whether through judicial proceedings or otherwise, (x) any refinancing or restructuring of the credit arrangements pursuant to the Indenture, including a "work-out," or pursuant to any
insolvency or bankruptcy cases or proceedings, and (xi) the failure by Grantor to perform or observe any of the provisions of this Security Agreement. All amounts payable by Grantor under this Section
8.12 shall be due upon demand and shall be part of the Obligations. Grantor's obligations under this Section 8.12 shall survive the termination of this Security Agreement and the discharge of
Grantor's other obligations hereunder. 

        8.13    Limitation on Duties Regarding Preservation of Collateral.    Trustee's sole duty with respect to the custody,
safekeeping and physical preservation of the Collateral in its possession, under Section 9-207 of the UCC or otherwise, shall be to deal with it in the same manner as Trustee (in its commercial and
not in its trust capacity) deals with similar property for its own account. 

        (a)  Trustee
shall have no obligation to take any steps to preserve rights against prior parties to any Collateral. 

        (b)  Neither
Trustee nor any Holder, nor any of their respective directors, officers or employees or agents shall be liable for failure to demand, collect or realize upon all
or any part of the Collateral or for any delay in doing so or shall be under any obligation to sell or otherwise dispose of any Collateral upon the request of Grantor or otherwise. 

        (c)  Trustee
shall have no obligation to marshal any of the Collateral. 

        (d)  The
powers conferred on Trustee and the Holders hereunder are solely to protect Trustee's and the Holders' interests in the Collateral and shall not impose any duty upon
Trustee or any Holder to exercise any such powers. 

        (e)  Trustee
and the Holders shall be accountable only for amounts that they actually receive as a result of the exercise of such powers, and neither they nor any of their
offices, directors, employees or agents shall be responsible to Grantor for any act or failure to act hereunder, except for their own negligence or willful misconduct. 

        (f)    Beyond
the duties set forth in this Section 8.13 and the exercise of reasonable care in custody thereof, Trustee shall have no duty as to the collection of any
Collateral in its possession or control or in the possession or control of any agent or nominee of Trustee, or any income thereon. 

        (g)  Trustee
shall be deemed to have exercised reasonable care in the custody and preservation of the Collateral in its possession if such Collateral is accorded treatment
substantially equivalent to that which Trustee, in its individual capacity, accords its own property, it being understood that Trustee shall not have responsibility for (i) ascertaining or taking
action with respect to calls, conversions, exchanges, maturities, tenders or other matters relating to any Collateral, whether or not Trustee or any other Secured Party has or is deemed to have
knowledge of such matters, or (ii) taking any necessary steps to preserve rights against any Person with respect to any Collateral. 

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ARTICLE IX 

MISCELLANEOUS

        9.1    Indemnity.    Grantor agrees to indemnify, reimburse and hold Trustee, the Holders and their respective
officers, directors, partners, members, employees and representatives ("Indemnitees") harmless from any and all liabilities, obligations, losses,
damages, penalties, claims, actions, judgments, suits, costs or expenses or disbursements (including attorneys' fees and expenses) for whatsoever kind or nature which may be imposed on, asserted
against or incurred by any of the Indemnitees in any way relating to or arising out of this Security Agreement, any other Security Agreement, the Indenture, the Notes, the Guarantees, the
Intercreditor Agreement, the Registration Rights Agreement or any of the transactions contemplated hereby or thereby. The obligations of Grantor under this Section 9.1 shall be secured hereby and
shall survive payment and performance or discharge of the Obligations and the termination of this Security Agreement for the two years following such payment and performance or discharge;  provided that,
if during such two year period any Indemnitee gives notice to Grantor of any potential
claim under this Section 9.1, then this Section 9.1 shall survive indefinitely until any such potential claim is resolved in a manner satisfactory to Trustee. 

        9.2    Governing Law.    THIS SECURITY AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE
CONSTRUED IN ACCORDANCE WITH AND BE GOVERNED BY THE LAWS OF THE STATE OF NEW YORK EXCEPT TO THE EXTENT THAT THE VALIDITY OR PERFECTION OF THE SECURITY INTEREST HEREUNDER, OR REMEDIES HEREUNDER, IN
RESPECT OF ANY PARTICULAR PROPERTY ARE GOVERNED BY THE LAWS OF A JURISDICTION OTHER THAN THE STATE OF NEW YORK. 

        9.3    Consent to Jurisdiction and Service Process.    ALL JUDICIAL PROCEEDINGS BROUGHT AGAINST GRANTOR WITH RESPECT
TO THIS SECURITY AGREEMENT MAY BE BROUGHT IN ANY STATE OR FEDERAL COURT OF COMPETENT JURISDICTION IN THE STATE OF NEW YORK AND BY EXECUTION AND DELIVERY OF THIS SECURITY AGREEMENT GRANTOR, TO THE
EXTENT PERMITTED BY LAW, ACCEPTS FOR ITSELF AND IN CONNECTION WITH ITS PROPERTIES, GENERALLY AND UNCONDITIONALLY, THE NONEXCLUSIVE JURISDICTION OF THE AFORESAID COURTS AND IRREVOCABLY AGREES TO BE
BOUND BY ANY JUDGMENT RENDERED THEREBY IN CONNECTION WITH THIS SECURITY AGREEMENT. GRANTOR DESIGNATES AND APPOINTS CT CORPORATION SYSTEM, WITH AN ADDRESS AT 1633 BROADWAY, NEW YORK, NEW YORK 10019 AND
SUCH OTHER PERSONS AS MAY HEREAFTER BE SELECTED BY GRANTOR IRREVOCABLY AGREEING IN WRITING TO SO SERVE, AS ITS AGENT TO RECEIVE ON ITS BEHALF IN NEW YORK, NEW YORK, SERVICE OF ALL PROCESS IN ANY SUCH
PROCEEDINGS IN ANY SUCH COURT, SUCH SERVICE BEING HEREBY ACKNOWLEDGED BY GRANTOR TO BE EFFECTIVE AND BINDING SERVICE IN EVERY RESPECT. A COPY OF SUCH PROCESS SO SERVED SHALL BE MAILED BY REGISTERED OR
CERTIFIED MAIL TO GRANTOR AT ITS ADDRESS PROVIDED FOR IN SECTION 9.4 EXCEPT THAT UNLESS OTHERWISE PROVIDED BY APPLICABLE LAW, ANY FAILURE TO MAIL SUCH COPY SHALL NOT AFFECT THE VALIDITY OF SERVICE OF
PROCESS. IF ANY AGENT APPOINTED BY GRANTOR REFUSES TO RECEIVE AND FORWARD SUCH SERVICE, GRANTOR HEREBY AGREES THAT SERVICE UPON IT BY DELIVERY SHALL CONSTITUTE SUFFICIENT NOTICE. NOTHING HEREIN SHALL
AFFECT THE RIGHT TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY LAW OR SHALL LIMIT THE RIGHT OF TRUSTEE OR ANY HOLDER TO BRING PROCEEDINGS AGAINST GRANTOR IN THE COURTS OF ANY OTHER JURISDICTION. 

23

 

        9.4    Notices.    Except as otherwise expressly provided herein, all notices, requests and demands to or upon the
respective parties hereto to be effective shall be in writing (including by telecopy), and shall be deemed to have been duly given or made when delivered by hand, or in the case of telecopy notice,
when sent by transmittal on a Business Day, or in the case of a nationally recognized overnight courier service, one business day after delivery to such courier service, addressed, in the case of each
party hereto, at its address specified below, or to such other address as may be designated by any party in a written notice to the other party hereto. 

        If
to Grantor: 

New
CF&I, Inc.

1000 S.W. Broadway, Suite 2200

Portland, Oregon 97205

Attention: Chief Financial Officer

Telecopy: (503) 240-5800 

        If
to the Secured Party: 

U.S.
Bank National Association 

180 East Fifth Street

St. Paul, Minnesota 55101

Attention: Corporate Trust Department

Telecopy: (651) 244-0711 

        9.5    Grantor Remains Liable.    Anything herein to the contrary notwithstanding, (i) Grantor shall remain liable
under the Contracts and agreements included in the Collateral to the extent set forth therein to perform all of the duties and obligations thereunder to the same extent as if this Security Agreement
had not been executed, (ii) the exercise by Trustee or any holder of any of the rights hereunder shall not release Grantor from any of its duties or obligations under the Contracts and agreements
included in the Collateral, and (iii) Trustee shall not have any obligation or liability under the Contracts and agreements included in the Collateral by reason of this Security Agreement, nor shall
Trustee be obligated to perform any of the obligations or duties of Grantor thereunder or to take any action to collect or enforce any claim for payment assigned hereunder. 

        9.6    Appointment as Trustee.    The actions of Trustee hereunder are subject to the provisions of the Indenture.
Trustee shall have the right hereunder to make demands, to give notices, to exercise or refrain from exercising any rights, and to take or refrain from taking action (including, without limitation,
the release or substitution of Collateral), in accordance with this Security Agreement and the Indenture. Trustee may resign and a successor Trustee may be appointed in the manner provided in the
Indenture. Upon the acceptance of any appointment as Trustee by a successor Trustee, that successor Trustee shall thereupon succeed to and become vested with all the rights, powers, privileges and
duties of the retiring Trustee under this Security Agreement, and the retiring Trustee shall thereupon be discharged from its duties and obligations under this Security Agreement. After any retiring
Trustee's resignation, the provisions of this Security Agreement shall inure to its benefit as to any actions taken or omitted to be taken by it under this Security Agreement while it was Trustee. 

        9.7    Trustee May Perform.    If Grantor shall fail to do any act or thing that it has covenanted to do hereunder or
if any warranty on the part of Grantor contained herein shall be breached, Trustee or any Holder may (but shall not be obligated to), after providing Grantor with at least five (5) Business Days'
notice, do the same or cause it to be done or remedy any such breach, and may expend funds for such purpose. Any and all amounts so expended by Trustee or such Holder shall be paid by Grantor promptly
upon demand therefor, with interest at the Default Rate during the period from and including the date on which such funds were so expended to the date of repayment. Grantor's 

24

 

obligations under this Section 9.7 shall survive the termination of this Security Agreement and the discharge of Grantor's other obligations under this Security Agreement. 

        9.8    Authority of Trustee.    Grantor acknowledges that the rights and responsibilities of Grantor under this
Security Agreement with respect to any action taken by Trustee or the exercise or non-exercise by Trustee of any option, voting right, request, judgment or other right or remedy provided for herein or
resulting or arising out of this Security Agreement shall, as between Trustee and the Holders, be governed by the Indenture and by such other agreements with respect thereto as may exist from time to
time among them, but, as between Trustee and Grantor, Trustee shall be conclusively presumed to be acting as agent for the Holders with full and valid authority so to act or refrain from acting, and
Grantor shall be under no obligation, or entitlement, to make any inquiry respecting such authority. 

        9.9    Successors and Assigns.    This Security Agreement shall create a continuing security interest in the
Collateral and shall be binding upon and inure to the benefit of Grantor, Trustee, the Holders, all future holders of the Obligations and their respective successors and permitted assigns, except that
Grantor may not assign or transfer any of its rights or obligations under this Security Agreement without the prior written consent of Trustee. Trustee may assign its rights under this Security
Agreement to one or more permitted assignees. Upon any such assignment, the assignee shall succeed to all of Trustee's rights and powers hereunder. No other persons (including, without limitation, any
other creditors of Grantor) other than a permitted assignee of Trustee shall have any interest herein or any right or benefit with respect hereto. 

        9.10    Amendments in Writing: No Waiver; Cumulative Remedies.    

        (a)  Subject
to the provisions of Article Nine of the Indenture, none of the terms or provisions of this Security Agreement may be waived, amended, supplemented or otherwise
modified except by a written instrument executed by Grantor and Trustee, provided that any provision of this Security Agreement imposing obligations on
Grantor may be waived by Trustee in a written instrument executed solely by Trustee. 

        (b)  In
the event Trustee shall have instituted any proceeding to enforce any right, power or remedy under this Security Agreement by foreclosure, sale, entry or otherwise,
and such proceeding shall have been discontinued or abandoned for any reason or shall have been determined adversely to Trustee, then and in every such case, Grantor, Trustee and each Holder, except
as may be otherwise determined
in such proceeding, shall be restored to their respective former positions and rights hereunder with respect to the Collateral, and all rights, remedies and powers of Trustee and the Holders, except
as may be otherwise determined in such proceeding, shall continue as if no such proceeding had been instituted. 

        (c)  No
failure or delay on the part of Trustee in exercising any right, power or privilege hereunder and no course of dealing between Grantor and Trustee shall operate as a
waiver thereof; nor shall any single or partial exercise of any right, power or privilege hereunder preclude any other or further exercise thereof or the exercise of any other right, power or
privilege. A waiver by Trustee of any right or remedy hereunder on any one occasion shall not be construed as a bar to any right or remedy which Trustee would otherwise have on any future occasion.
The rights and remedies herein expressly provided are cumulative and may be exercised singly or concurrently and as often and in such order as Trustee deems expedient and are not exclusive of any
rights or remedies which Trustee would otherwise have whether by agreement or now or hereafter existing under applicable law. No notice to or demand on Grantor in any case shall entitle Grantor to any
other or further notice or demand in similar or other circumstances or constitute a waiver of the rights of Trustee to any other or future action in any circumstances without notice or demand. 

25

 

        9.11    Termination.    When the Obligations (other than any obligations arising under the proviso to Section 9.1)
have been indefeasibly paid and performed in full, this Security Agreement shall terminate, and Trustee, at the request and sole expense of Grantor, shall execute and deliver to Grantor the proper
instruments (including UCC termination statements) acknowledging the termination of this Security Agreement, and shall duly assign, transfer and deliver to Grantor, without recourse, representation or
warranty of any kind whatsoever, such of the Collateral as may be in possession of Trustee and has not theretofore been disposed of, applied or released, including the release and cancellation of all
licenses and rights referred to in Section 6.1(l); provided, however, that any licenses of sublicenses
granted by Trustee pursuant to Section 8.8 shall continue to be in full force and effect in accordance with their terms. 

        9.12    Release of Collateral.    Reference is hereby made to Article Eleven of the Indenture for provisions which
discuss the release of the Collateral from the Liens created by this Security Agreement. 

        9.13    Headings Descriptive.    The headings of the several Articles, Sections and subsections of this Security
Agreement are inserted for convenience only and shall not in any way affect the meaning or construction of any provision of this Security Agreement. 

        9.14    Severability.    In case any provision in or obligation under this Security Agreement shall be invalid,
illegal or unenforceable in any jurisdiction, the validity, legality and enforceability of the remaining provisions hereof, or of such provision in any other jurisdiction, shall not in any way be
affected or impaired thereby. 

        9.15    Other Security.    To the extent that the Obligations are now or hereafter secured by property other than the
Collateral or are now or hereafter secured by the guarantee, endorsement or property of any other Person, then Trustee shall have the right in its sole discretion to pursue, relinquish, subordinate,
modify or take any other action with respect thereto, without in any way modifying or affecting any of Trustee's or any Holder's rights and remedies hereunder. 

        9.16    Execution in Counterparts.    This Security Agreement and any amendments, waivers, consents or supplements
hereto may be executed in any number of counterparts and by different parties hereto in separate counterparts, each of which when so executed and delivered shall be deemed to be an original, but all
such counterparts together shall constitute one and the same agreement. 

        9.17    Obligations Absolute.    All obligations of Grantor hereunder shall be absolute and unconditional irrespective
of: 

        (a)  any
bankruptcy, insolvency, reorganization, arrangement, readjustment, composition, liquidation or the like of Grantor; 

        (b)  any
lack of validity or enforceability of this Security Agreement, any other Security Document, the Notes, the Indenture, the Registration Rights Agreement, the
Intercreditor Agreement or the Guarantees or any other agreement or instrument relating to any of the foregoing; 

        (c)  any
change in the time, manner or place of payment of, or in any other term of, all or any of the Obligations, or any other amendment or waiver of or any consent to any
departure from this Security Agreement, any other Security Document, the Notes, the Indenture, the Registration Rights Agreement, the Intercreditor Agreement or the Guarantees or any other agreement
or instrument relating to any of the foregoing (except to the extent specified in such change, amendment or waiver); 

        (d)  any
exchange, release or non-perfection of any other collateral, or any release or amendment or waiver of or consent to any departure from any guarantee, for all or any
of the Obligations; 

26

 

        (e)  any
exercise or non-exercise, or any waiver of, any right, remedy, power or privilege under or in respect of this Security Agreement, any other Security Document, the
Notes, the Indenture, the Registration Rights Agreement, the Intercreditor Agreement or the Guarantees or any other agreement
or instrument relating to any of the foregoing, except as specifically set forth in a waiver granted pursuant to the provisions of the Indenture; or 

        (f)    any
other circumstances which might otherwise constitute a defense available to, or a discharge of, a guarantor or a surety other than irrevocable payment in full of the
Obligations. 

        9.18    Limitation on Interest Payable.    It is the intention of the parties to conform strictly to the usury laws,
whether state or federal, that are applicable to the transaction of which this Security Agreement is a part. All agreements between Grantor and Trustee, whether now existing or hereafter arising and
whether oral or written, are hereby expressly limited so that in no contingency or event whatsoever shall the amount paid or agreed to be paid by Grantor for the use, forbearance or detention of the
money to be loaned or advanced under this Security Agreement, any other Security Document, the Notes, the Indenture, the Registration Rights Agreement, the Intercreditor Agreement or the Guarantees or
any other agreement or instrument relating to any of the foregoing, or for the payment or performance of any covenant or obligation contained herein or therein, exceed the maximum amount permissible
under applicable federal or state usury laws. If under any circumstances whatsoever fulfillment of any such provision, at the time performance of such provision shall be due, shall involve exceeding
the limit of validity prescribed by law, then the obligation to be fulfilled shall be reduced to the limit of such validity. If under any circumstances Grantor shall have paid an amount deemed
interest by applicable law, which would exceed the highest lawful rate, such amount that would be excessive interest under applicable usury laws shall be applied to the reduction of the principal
amount owing in respect of the Obligations and not to the payment of interest, or if such excessive interest exceeds the unpaid balance of principal and any other amounts due hereunder, the excess
shall be refunded to Grantor. All sums paid or agreed to be paid for the use, forbearance or detention of the principal under any extension of credit or advancement of funds by Trustee or any Holder,
shall, to the extent permitted by applicable law, and to the extent necessary to preclude exceeding the limit of validity prescribed by law, be amortized, prorated, allocated and spread from the date
of this Security Agreement until payment in full of the Obligations so that the actual rate of interest on account of such principal amounts is uniform throughout the term hereof. 

        9.19    Indenture Controls.    All terms, covenants, conditions, provisions and requirements of the Indenture are
incorporated by reference in this Security Agreement. In the event of any conflict or inconsistency between the provisions of this Security Agreement and those of the Indenture, including any
conflicts or inconsistencies in any definitions herein or therein, except to the extent that new definitions are set forth herein for such terms, the provisions or definitions of the Indenture shall
govern. 

        9.20    Trust Indenture Act Controls.    If any provision of this Security Agreement limits, qualifies or conflicts
with the duties imposed by the TIA, the duties imposed by the TIA shall control. 

        9.21    Notice under ORS 746.201.    In compliance with ORS 746.201, this Security Agreement contains the following
warning, which Grantor acknowledges: 

WARNING

UNLESS
YOU (NEW CF&I, INC.) PROVIDE US (BENEFICIARY) WITH EVIDENCE OF THE INSURANCE COVERAGE AS REQUIRED BY OUR CONTRACT OR LOAN AGREEMENT, WE MAY PURCHASE INSURANCE AT YOUR EXPENSE TO PROTECT OUR
INTEREST. THIS INSURANCE MAY, BUT NEED NOT, ALSO PROTECT YOUR INTEREST. IF THE COLLATERAL BECOMES DAMAGED, THE COVERAGE WE PURCHASE MAY NOT PAY ANY CLAIM YOU MAKE OR ANY CLAIM MADE AGAINST YOU. YOU
MAY LATER CANCEL 

27

 

THIS COVERAGE BY PROVIDING EVIDENCE THAT YOU HAVE OBTAINED PROPERTY COVERAGE ELSEWHERE. 

YOU
ARE RESPONSIBLE FOR THE COST OF ANY INSURANCE PURCHASED BY US. THE COST OF THIS INSURANCE MAY BE ADDED TO YOUR CONTRACT OR LOAN BALANCE. IF THE COST IS ADDED TO YOUR CONTRACT OR LOAN BALANCE, THE
INTEREST RATE ON THE UNDERLYING CONTRACT OR LOAN WILL APPLY TO THIS ADDED AMOUNT. THE EFFECTIVE DATE OF COVERAGE MAY BE THE DATE YOUR PRIOR COVERAGE LAPSED OR THE DATE YOU FAILED TO PROVIDE PROOF OF
COVERAGE. 

THE
COVERAGE WE PROVIDE MAY BE CONSIDERABLY MORE EXPENSIVE THAN INSURANCE YOU CAN OBTAIN ON YOUR OWN AND MAY NOT SATISFY ANY NEED FOR PROPERTY DAMAGE COVERAGE OR ANY MANDATORY LIABILITY INSURANCE
REQUIREMENTS IMPOSED BY APPLICABLE LAW. 

        9.22    Intercreditor Agreement.    The rights and obligations of the parties hereto are subject to the Intercreditor
Agreement. 

[signature page follows] 

28

        IN WITNESS WHEREOF, Grantor and Trustee have caused this Security Agreement to be duly executed and delivered as of the date first above written. 

	 	 	NEW CF&I, INC.

As Grantor
	

 	
 	

By:	
 	

 
	 	 	 	 	
 Name:

Title:
	

 	
 	
U.S. BANK NATIONAL ASSOCIATION

As Trustee
	

 	
 	

By:	
 	

 
	 	 	 	 	
 Name:

Title:

SCHEDULE 2.1(f)  

 EXCLUDED EQUIPMENT  

Passenger
trucks

Cars

Sport utility vehicles

Forklifts

Pickup trucks

Dump trucks

Railroad trackmobile

Mobile grader

Front end loaders

Semi trucks

Maintenance trucks

Manlifts

Field tractors

Trailers for semi trucks

Electric 300 hp railroad switch engine

Scrap gondola railcars

Backhoes

Gradalls

Crawler cranes

Bobcat loaders

Pipe handlers

New coil rod loaders

Pettibone carry-lifts

Pettibone loader carriages

Forklift trucks

Coil handlers

Cranes

Loaders

Scrap loaders

Crawler loaders

Power sweepers

Mobile floor sweepers

Crane mobile trucks

Lowboy trailers

Truck mounted cranes

Fuel trucks

Portable air compressors

Bucket trucks

Flatbed trucks

Fire trucks

Floor machine tennant industrial

Lugger trucks

Water trucks

Rear dump trucks

Rock trucks

Hydraulic platform transporters

Straddle carriers

Graders

Draglines

Tractors

All terrain vehicles

Vans

Van ambulance 

SCHEDULE 4.1  

 NECESSARY FILINGS  

        1.    UCC
Financing Statement listing New CF&I, Inc. as debtor and U.S. Bank National Association, as Trustee as secured party to be filed with the Delaware Secretary of State. 

SCHEDULE 4.3  

 CHIEF EXECUTIVE OFFICE, LOCATIONS OF BOOKS AND RECORDS AND TRADE NAMES  

	1.	Chief Executive Office
	

 	

1000 S.W. Broadway, Suite 2200

Portland, Oregon 97205
	

2.	
Other Places Of Business And Locations Where Books Of Accounts And Records Are Kept
	

 	

1612 E. Abriendo

Pueblo, CO 81004
	

3.	
Trade Names
	

 	

None.

SCHEDULE 4.16(a)  

 COPYRIGHTS AND COPYRIGHT LICENSES  

None. 

SCHEDULE 4.16(b)  

 PATENTS AND PATENT LICENSES  

None. 

SCHEDULE 4.16(c)  

 TRADEMARKS AND TRADEMARK LICENSES  

None.

EXHIBIT A  

 FORM OF SECURITY SUPPLEMENT  

        This SECURITY SUPPLEMENT, dated  [            ]
, is delivered pursuant to the Security Agreement, dated as of July [            ],
2002 (as the same may be from time to time amended, restated, supplemented or otherwise modified, the "Security Agreement"), among New CF&I, Inc., as Grantor, and U.S. Bank National
Association, as Trustee. Capitalized terms used herein not otherwise defined herein shall have the meanings ascribed thereto in the Security Agreement. 

        Grantor
hereby confirms the grant to Trustee set forth in the Security Agreement of, and does hereby grant to Trustee, a security interest in all of Grantor's right, title and interest
in and to all Collateral to secure the Obligations, in each case whether now or hereafter existing or in which Grantor now has or hereafter acquires an interest and wherever the same may be located.
Grantor represents and warrants that the attached Supplements to Schedules accurately and completely set forth all additional information required pursuant to the Security Agreement and hereby agrees
that such Supplements to Schedules shall constitute part of the Schedules to the Security Agreement. 

        IN WITNESS WHEREOF, Grantor has caused this Security Supplement to be duly executed and delivered by its duly authorized officer as of  
[            ]. 

	

 	

 	

 	

 
	

 	
NEW CF&I, INC.
	

 	

By:	

 	

 
	 	 	

	 	 	Name:	 
	 	 	Title:	 

[Attach Supplements to Schedules]

QuickLinks

Exhibit 4.5QuickLinks
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Exhibit 4.6    
  

INTERCREDITOR AGREEMENT

        THIS
INTERCREDITOR AGREEMENT (this "Agreement"), dated as of the 15th day of July, 2002, by and among Oregon Steel Mills, Inc., a Delaware corporation (the
"Company"), U.S. Bank National Association, in its capacity as trustee, for itself and on behalf of the "Noteholders" from time to time party to the "Indenture" as those terms are defined below
(together with any successor thereto under the Indenture (provided that such successor shall be bound by the terms hereof), the "Trustee"), and Textron Financial Corporation, a Delaware corporation
("Textron"), in its capacity as agent for itself and any other "Revolver Lender" from time to time party to the "Revolver Credit Agreement" as those terms are defined below. 

R E C I T A L S

        A.    The
Company, the Note Guarantors (as defined below) and the Trustee are entering into that certain Indenture (as defined below), pursuant to which the Company shall issue
to the Noteholders the aggregate principal amount of $305,000,000 10% First Mortgage Notes due 2009 (the "Notes"); 

        B.    The
Company has entered into the Revolver Credit Agreement (as defined below), pursuant to which the Revolver Lenders have made available to the Company a revolving
credit facility in the aggregate amount up to $75,000,000; 

        C.    The
obligations of the Company and the Note Guarantors under the Indenture are secured by mortgages, liens and security interests in substantially all of the Company's
and the Note Guarantors' real property, plant and equipment and certain other assets, all as more specifically set forth in the Indenture and the other Note Documents (as defined below); 

        D.    The
obligations of the Company under the Revolver Credit Agreement are secured by inventory, receivables and all assets relating thereto, as more specifically set forth
in the Revolver Credit Agreement and the other Revolver Credit Documents (as defined below); and 

        E.    The
Company, CF&I, New CF&I, CWR, the Revolver Agent (as defined below) and the Trustee wish to enter into this Agreement setting forth certain agreements among them in
respect of their respective rights and the respective rights of the Revolver Lenders and Revolver Agent, and the Noteholders and the Trustee, with respect to the Revolver Collateral and the Note
Collateral. 

A G R E E M E N T

        In
consideration of the premises and the mutual covenants and conditions herein contained, the Trustee, for itself and on behalf of the Noteholders, and the Revolver Agent, for itself
and on behalf of the Revolver Lenders, intending to be legally bound, agree as follows: 

        1.    Definitions.    In addition to those terms elsewhere expressly defined in this Agreement, as used herein, the
following terms shall be defined as set forth below: 

        "Business Day" means any day that is not a Saturday, a Sunday, a day on which banks are required or authorized to be closed in the State
of New York or a day on which the Revolver Agent or the Trustee is closed for business. 

        "Camrose Parties" means Camrose Pipe Corporation, a Delaware corporation, Canadian National Steel Company, an Alberta, Canada corporation,
and Camrose Pipe Company, a Canadian general partnership. 

        "CF&I" means CF&I Steel, L.P., a Delaware limited partnership. 

        "CF&I Security Agreements" means (i) the Deed of Trust, Assignment of Rents and Leases, Security Agreement and Fixture Filing,
dated as of July 15, 2002, from CF&I, as grantor, to The Public Trustee of Pueblo County, as trustee, for the benefit of the Trustee, as beneficiary, (ii) the Deed of Trust, Assignment
of Rents and Leases, Security Agreement and Fixture Filing, dated as of July 15, 

 

2002, from CF&I, as grantor, to The Public Trustee of Fremont County, as trustee, for the benefit of the Trustee, as beneficiary, (iii) Assignment of Rents and Leases, dated as of
July 15, 2002, by CF&I for the benefit of the Trustee, (iv) the Security Agreement, dated as of July 15, 2002, by CF&I, as grantor, in favor of the Trustee and (v) in each
case, any and all fixture filings and other filings related thereto. 

        "Collateral" means, collectively, the Revolver Collateral and the Note Collateral. 

        "Company" has the meaning set forth in the Recitals. 

        "CWR" means Colorado and Wyoming Railway Company, a Delaware corporation. 

        "Disposition" means the sale, assignment, transfer, lease, conveyance or other disposition by the Company or any of its Domestic
Subsidiaries of any OSM Property, including, without limitation, an involuntary disposition as a result of a casualty or condemnation. 

        "Domestic Subsidiaries" means any Subsidiary organized or formed in any state of the United States or in the District of Columbia,
excluding Camrose, LSI and Oregon Feralloy. 

        "General Intangibles" means any "general intangibles," as such term is defined in the UCC. 

        "Governmental Agency" means (a) any international, foreign, federal, state, county or municipal government, or political
subdivision thereof, (b) any governmental agency, authority, board, bureau, commission, department or instrumentality, (c) any court or administrative tribunal, (d) any non-
governmental agency or entity that is vested by a governmental agency with applicable jurisdiction over a Person, or (e) any arbitration tribunal or other non-governmental authority to whose
jurisdiction a Person has given its general consent. 

        "Indenture" means (a) the Indenture, dated as of July 15, 2002, among the Company, the Note Guarantors and the Trustee, as
such agreement may be amended, amended and restated, renewed,
extended, restructured, supplemented, or otherwise modified from time to time; and (b) any credit agreement, loan agreement, note purchase agreement, indenture or other agreement, document or
instrument refinancing, refunding or otherwise replacing the Indenture, or any other agreement deemed an Indenture under clause (a) or (b) hereof, whether or not with the same agent, trustee,
representative lenders or holders and, subject to the provisions of the next succeeding sentence, irrespective of any change in the terms and conditions thereof; provided, that any such agreement,
document or instrument effecting any such refunding or replacement expressly provides that it is deemed to be the "Indenture" hereunder and that the noteholders thereunder and their trustee(s), if
any, shall be bound by the terms hereof. Without limiting the generality of the foregoing, the term "Indenture" shall include any amendment, amendment and restatement, renewal, extension,
restructuring, supplement or modification to any issuance of Notes and all refundings and replacements of any issuance of notes including any agreement (i) extending the maturity of any Note
Obligations; (ii) adding or deleting issuers, borrowers or guarantors thereunder; (iii) increasing the amount of Note Obligations incurred thereunder or available to be issued
thereunder; or (iv) otherwise altering the terms and conditions thereof; provided, that any such agreement, document or instrument effecting any such refunding or replacement expressly provides
that it is deemed to be the "Indenture" hereunder. 

        "Law" means, when used in connection with any Person, collectively, all international, foreign, federal, state and local statutes,
treaties, rules, regulations, standards, guidelines, ordinances, codes, orders and judgments (or any official interpretation of any of the foregoing) issued by any Governmental Agency applicable to
that Person. 

        "Lien" means any mortgage, deed of trust, deed to secure debt, pledge, hypothecation, assignment for security, security interest,
encumbrance, lien or charge of any kind, whether voluntarily incurred or arising by operation of Law, by statute, by contract, or otherwise, affecting any Property, including any agreement to grant
any of the foregoing, any conditional sale or other title retention agreement, any 

2

 

lease in the nature of a security interest, and/or the filing of or agreement to give any financing statement (other than a precautionary financing statement with respect to a lease that is not in
the nature of a security interest) under the UCC or comparable Law of any jurisdiction as in effect on the date hereof with respect to any Property. 

        "LSI" means LSI Plate, a California general partnership. 

        "New CF&I" means New CF&I, Inc., a Delaware corporation. 

        "New CF&I Security Agreement" means (i) the Security Agreements dated as of July 15, 2002, by New CF&I, as grantor, in favor
of the Trustee and (ii) any and all filings related thereto. 

        "Note Collateral" has the meaning set forth in Section 2.1(b).

        "Note Documents" means the Indenture, the Note Security Documents and all guarantees, documents, agreements, instruments and certificates
now or hereafter executed and delivered in connection with the Indenture and the Note Security Documents, except as released pursuant to or in accordance with the Indenture. 

        "Note Guarantors" means CF&I and New CF&I. 

        "Note Obligations" means, collectively, at any time all debts, liabilities and obligations of the Company and the Note Guarantors, whether
now or hereafter existing, arising pursuant to the terms of the Note Documents at such time. 

        "Note Security Agreements" means the security agreements executed pursuant to and in connection with the Indenture, including the OSM
Security Agreements, the New CF&I Security Agreement and the CF&I Security Agreements. 

        "Note Security Documents" means, collectively, any and all documents executed in connection with the Indenture or in furtherance thereof,
pursuant to which the Company, and the Note Guarantors or their Domestic Subsidiaries grant to the Noteholders (whether through the Trustee or otherwise) a Lien on the Note Collateral, including,
without limitation, the Note Security Agreements as the same may be amended, modified or supplemented from time to time to the extent, and only to the extent, that such amendment, modification or
supplement is permitted by the Indenture. 

        "Noteholders" means the holders from time to time of the Notes and each of their respective successors, transferees or assigns. 

        "Noteholders' Lien" means a Lien now or hereafter granted to, or obtained by, the Noteholders or the Trustee for the benefit of the
Noteholders on any Note Collateral, as security for the payment of any Note Obligations. 

        "Notes" has the meaning set forth in the Recitals. 

        "Oregon Feralloy" means Oregon Feralloy Partners, an Oregon general partnership. 

        "OSM Property" means any and all Property of the Company and each of its Domestic Subsidiaries, or rights, title or interests of the
Company or such Domestic Subsidiary in Property, howsoever arising, acquired or obtained, whether now or hereafter existing, whether tangible or intangible, whether real or personal, and wherever
located. 

        "OSM Real Property" means (i) all freehold real and immovable property now owned or hereafter acquired by the Company and each of
its Domestic Subsidiaries that is a party to a mortgage or a deed of trust delivered pursuant to the Indenture, together with all buildings, erections, improvements and fixtures now or hereafter
constructed or placed thereon or used in connection therewith, and (ii) all leasehold real property now or hereafter leased by the Company or such Domestic Subsidiary, together 

3

 

with all buildings, erections, improvements and fixtures now or hereafter constructed or placed thereon or used in connection therewith that is subject to the Noteholders' Lien. 

        "OSM Security Agreements" means (i) the Deed of Trust, Assignment of Rents and Leases, Security Agreement and Fixture Filing, dated
as of July 15, 2002, by and among the Company, as grantor, to Commonwealth Land Title Insurance Company, as trustee, for the benefit of the Trustee, as beneficiary, (ii) the Deed of
Trust, Assignment of Rents and Leases, Security Agreement and Fixture Filing, dated as of July 15, 2002, by and among the Company, as grantor, to Transnation Title Insurance Company, as
trustee, for the benefit of the Trustee, as beneficiary, (iii) the Security Agreement, dated as of July 15, 2002, by and among the Company, as grantor, in favor of the Trustee, and
(iv) in each case, any and all fixture filings and other filings related thereto. 

        "Patent" or "Patents" means one or all of the following now owned or hereafter acquired by
the Company or its Domestic Subsidiaries or in which the Company or its Domestic Subsidiaries now has or hereafter acquires any rights, including, without limitation, pursuant to any Patent License,
and wherever located: (a) all letters patent of the United States or any other country and all applications for letters patent of the United States or any other country, (b) all
reissues, renewals, reexaminations, continuations, continuations-in-part, divisions, and extensions of any of the foregoing, (c) all inventions claimed and disclosed in the Patents and any and
all trade secrets and know-how related thereto, and (d) all proceeds of the foregoing, including licenses, royalties, income, payment claims, damages and proceeds of suit and the right to sue
for any past, present or future infringements of any of the foregoing. 

        "Patent License" means any agreement (whether written or verbal) granting any right to make, use, sell and/or practice any invention or
discovery that is the subject matter of a Patent now owned or hereafter acquired by the Company or its Domestic Subsidiaries or in which the Company or its Domestic Subsidiaries now has or hereafter
acquires any rights. 

        "Person" means any entity, whether an individual, trustee, corporation, general partnership, limited partnership, joint stock company,
trust, estate, unincorporated organization, business association, tribe, firm, joint venture, Governmental Agency, or otherwise. 

        "Proceeds" means "Proceeds," as such term is defined in the UCC and, in any event, shall include, without limitation, (a) any and
all Proceeds of any insurance, indemnity, warranty or guaranty payable to either the Trustee or the Revolver Agent or the Company or any of its Domestic Subsidiaries that is a party to a Security
Document from time to time with respect to any of the Collateral, (b) any and all payments (in any form whatsoever) made or due and payable to the Company or such Domestic Subsidiary from time
to time in connection with any requisition, confiscation, condemnation, seizure or forfeiture of all or any part of the Collateral by any Governmental Agency (or any Person acting under color of
governmental authority) and (c) any and all other amounts from time to time paid or payable under or in connection with any of the Collateral. 

        "Property" means any interest in any kind of property or asset, whether real, personal or mixed, tangible or intangible. 

        "Remedial Action" means any claim, proceeding or action to foreclose upon, take possession or control of, sell, lease or otherwise dispose
of or in any other manner realize, take steps to realize or seek to realize upon, the whole or any part of any OSM Property, whether pursuant to the UCC, by foreclosure, by setoff, by self-help
repossession, by notification to account debtors, by deed in lieu of foreclosure, by exercise of power of sale, by judicial action or otherwise, or the exercise of any other remedies with respect to
any OSM Property available under any of the Security Documents, or under applicable Law. 

        "Revolver Agent" means Textron in its capacity as agent for the Revolver Lenders under the Revolver Credit Agreement and not in its
individual capacity, any successor agent to Textron under the 

4

 

Revolver Credit Agreement and any other agent, trustee or representative of the Revolver Lenders serving in such capacity from time to time and, if there is no such agent, trustee or representative,
"Revolver Agent" means, collectively, the Revolver Lenders. 

        "Revolver Collateral" has the meaning set forth in Section 2.1(a). 

        "Revolver Credit Agreement" means (a) the Credit Agreement, dated as of July 12, 2002, among the Company, New CF&I, CF&I,
CWR, GMAC Business Credit LLC, as Co-Managing Agent, and Textron, as Agent, as such agreement may be amended, amended and restated, renewed, extended, restructured, supplemented, or otherwise modified
from time to time; and (b) any credit agreement, loan agreement, note purchase agreement, indenture or other agreement, document or instrument refinancing, refunding or otherwise replacing the
Revolver Credit Agreement, or any other agreement deemed a Revolver Credit Agreement under clause (a) or (b) hereof, whether or not with the same agent, trustee, representative lenders or
holders and, subject to the provisions of the next succeeding sentence, irrespective of any change in the terms and conditions thereof; provided, that,
any such agreement, document or instrument effecting any such refunding, refinancing or replacement expressly
provides that it is deemed to be a "Revolver Credit Agreement" hereunder and that the lenders thereunder and their agent(s), if any, shall be bound by the terms hereof. Without limiting the generality
of the foregoing, the term "Revolver Credit Agreement" shall include any amendment, amendment and restatement, renewal, extension, restructuring, supplement or modification to any Revolver Credit
Agreement and all refundings, refinancings and replacements of any Revolver Credit Agreement including any agreement (i) extending the maturity of any Revolver Obligations; (ii) adding
or deleting issuers, borrowers or guarantors thereunder; (iii) increasing the amount of Revolver Obligations incurred thereunder or available to be borrowed thereunder; or (iv) otherwise
altering the terms and conditions thereof; provided, that any such agreement, document or instrument effecting any such refunding, refinancing or replacement expressly provides that it is deemed to be
a "Revolver Credit Agreement" hereunder and that the lenders thereunder and their agent(s), if any, shall be bound by the terms hereof. 

        "Revolver Credit Documents" means the Revolver Credit Agreement, the Revolver Security Documents, and all guarantees, documents,
agreements, instruments and certificates now or hereafter executed and delivered in connection with the Revolver Credit Agreement, except as released pursuant to or in accordance with the Revolver
Credit Agreement. 

        "Revolver Lenders" means, collectively, the holders from time to time of the Revolver Obligations. 

        "Revolver Lenders' Lien" means a Lien now or hereafter granted to, or obtained by, the Revolver Lenders or the Revolver Agent for the
benefit of the Revolver Lenders on any Revolver Collateral as security for the payment and performance of any Revolver Obligations. 

        "Revolver Obligations" means, collectively, at any time, all debts, liabilities and obligations of the Company or its Domestic
Subsidiaries, whether now or hereafter existing, incurred in connection with the Revolver Credit Documents at such time. 

        "Revolver Security Documents" means, collectively, any and all documents executed in connection with the Revolver Credit Agreement or in
furtherance thereof, pursuant to which the Company or its Domestic Subsidiaries grants to the Revolver Lenders (whether through the Revolver Agent or otherwise) a Lien on the Revolver Collateral, as
the same may be amended, modified, supplemented or acknowledged from time to time to the extent, and only to the extent, that such amendment, modification, supplement or acknowledgment is permitted by
the Revolver Credit Agreement. 

        "Security Documents" means, collectively, the Revolver Security Documents and the Note Security Documents. 

5

 

        "Subsidiary" means any Person of which at least a majority of the capital stock or other ownership interest having ordinary voting power
for the election of directors or other governing body of said Person is owned by OSM, directly or through one or more other Subsidiaries. 

        "Trustee" has the meaning set forth in the introductory paragraph. 

        "Trademark" or "Trademarks" means, as used by the Company or its Domestic Subsidiaries,
(a) all registered and unregistered trademarks, trade names, corporate names, business names, fictitious business names, internet domain names, trade styles, service marks, logos, slogans,
certification marks, collective marks and other source or business identifiers, designs and general intangibles of a like nature and the goodwill associated therewith, all registrations and recordings
thereof, and all applications in connection therewith, whether in the United States Patent and Trademark Office or in any similar office or agency of the United States, any State thereof or any other
country or any political subdivision thereof, or otherwise, (b) all renewals or extensions thereof, and (c) the right to sue for past, present and future infringement or dilution of any
of the foregoing or for any injury to goodwill, and all proceeds of the foregoing, including licenses, royalties, income, payments, claims damages and proceeds of suit. 

        "Trademark License" means any agreement (whether written or verbal) granting any right to use any Trademark or Trademark registration now
owned or hereafter acquired by the Company or its Domestic Subsidiaries or in which the Company or its Domestic Subsidiaries now has or hereafter acquires any rights. 

        "UCC" means the Uniform Commercial Code as in effect from time to time in the State of New York, or, when the context implies, the Uniform
Commercial Code as in effect from time to time in any other applicable jurisdiction. 

        2.    Priority of Liens; Remedial Actions; Other Agreements.    

        2.1    Priority of Liens.    The Revolver Lenders' Liens and the Noteholders' Liens shall, as between the Revolver
Lenders and the Noteholders, have the following priorities: 

        (a)  The
Revolver Lenders' Liens in all that OSM Property set forth and described on Schedule A hereto (the "Revolver Collateral") shall be first priority Liens in such
Property, and the Trustee and Noteholders shall have no security interest therein or Lien thereon. 

        (b)  The
Noteholders' Liens in all that OSM Property set forth and described on Schedule B hereto (the "Note Collateral") shall be first priority Liens in such Property, and
the Revolver Agent shall have no security interest therein or Lien thereon. 

The
foregoing provisions shall be effective at all times during the term of this Agreement, notwithstanding: (i) the initiation of any bankruptcy, moratorium, reorganization or other solvency
proceeding with respect to the Company or its Domestic Subsidiaries or the grantor or pledgor of any Collateral; (ii) the priorities which would otherwise result from the order of creation, attachment
or perfection of any such Lien; (iii) the taking of possession of any of the OSM Property by the Revolver Agent, the Trustee, any Revolver Lender or any Noteholder; (iv) the filing of any financing
statement or the recording of any mortgage or other instrument in any recording office; (v) the order in which any of the Revolver Obligations or the Note Obligations are created; (vi) whether any
such Lien is now perfected, hereafter ceases to be perfected, is avoidable by any bankruptcy trustee or otherwise is set aside invalidated or lapses; or (vii) any other matter whatsoever; and shall
continue in full force and effect unless and until this Agreement shall have terminated in accordance with Section 4 hereof. 

        2.2    Remedial Actions.    Unless and until this Agreement shall have been terminated in accordance with  Section 4 hereof,
the Revolver Agent and the Trustee shall have the right, as 

6

 

between themselves, to take or fail to take Remedial Actions with respect to any Collateral as follows: 

        (a)  The
Revolver Agent shall have the sole and exclusive right to take or fail to take any Remedial Action with respect to the Revolver Collateral as provided in the
Revolver Security Documents or under applicable Law in any manner deemed appropriate by the Revolver Agent or the Revolver Lenders in its or their sole discretion, and neither the Trustee nor any
Noteholder shall take any Remedial Action with respect to the Revolver Collateral without the prior written consent of the Revolver Agent; 

        (b)  The
Trustee shall have the sole and exclusive right to take or fail to take any Remedial Action with respect to the Note Collateral as provided in the Note Security
Documents or under applicable Law in any manner deemed appropriate by the Trustee or the Noteholders in its or their sole discretion, and neither the Revolver Agent nor any Revolver Lender shall take
any Remedial Action with respect to the Note Collateral without the prior written consent of the Trustee; 

        (c)  The
Revolver Agent shall have the sole and exclusive right to adjust settlement of, and collect the Proceeds of, any and all insurance insuring the Revolver Collateral;
any such Proceeds received shall be promptly distributed in accordance with Section 2.3 hereof; and 

        (d)  The
Trustee shall have the sole and exclusive right to adjust settlement of, and collect the Proceeds of, any and all insurance insuring the Note Collateral; any such
Proceeds received shall be promptly distributed in accordance with Section 2.3 hereof. 

Notwithstanding
the foregoing, nothing contained in this Section 2.2 shall prohibit the Revolver Agent, the Revolver Lenders, the Trustee or the
Noteholders from filing a proof of claim in any case involving the Company or any of its Domestic Subsidiaries, as debtor, under Title 11 of the United States Code, as amended, nor from intervening or
participating in any other judicial proceeding to the extent necessary to establish or preserve its interests, subject in each case to the provisions of this Agreement. 

        2.3    Priority on Distribution of Proceeds of Collateral.    In the event of: 

        (a)  any
distribution of any OSM Property upon the bankruptcy, arrangement, receivership, assignment for the benefit of creditors or any other action or proceeding involving
the readjustment of the obligations and indebtedness of the Company or any of its Domestic Subsidiaries that is a party to a Security Document, or the application of any OSM Property to the payment
thereof; 

        (b)  any
distribution of the OSM Property upon the liquidation or dissolution of the Company or any Domestic Subsidiary of the Company that is a party to a Security Document,
or the winding up of the assets or business of the Company or any such Subsidiary of the Company; 

        (c)  any
realization by any of the Revolver Agent, the Trustee, the Revolver Lenders or the Noteholders with respect to the Revolver Lenders' Liens or the Noteholders' Liens,
respectively, whether through a Remedial Action or otherwise; or 

        (d)  any
Disposition of any OSM Property, to the extent that any part of the proceeds of such Disposition are required to be applied to any of the Revolver Obligations or the
Note Obligations or held by the Revolver Agent or the Trustee in accordance with the provisions of the Revolver Credit Documents, the Note Documents, or the provisions of this Agreement; 

then,
in any such event, as between the Revolver Lenders and the Noteholders (i) all of the Revolver Collateral and any Proceeds thereof so distributed, applied or realized upon shall be 

7

 

distributed or paid to (or retained by) the Revolver Agent for application to the Revolver Obligations to the extent of the Revolver Lenders' Liens therein and (ii) all of the Note Collateral
and any Proceeds thereof distributed, applied or realized upon shall be distributed or paid to (or retained by) the Trustee for application to the Note Obligations to the extent of the Noteholders'
Liens therein. Any amounts paid to the Revolver Agent and the Trustee shall be allocated to the Revolver Lenders and the
Noteholders, respectively, in accordance with the terms of the Revolver Credit Documents and the Note Documents, respectively. 

        2.4    Parties to Hold Proceeds in Trust.    In the event that: 

        (a)  the
Revolver Agent or any Revolver Lender obtains possession of any of the Note Collateral or receives any Proceeds from any Remedial Action with respect to Note
Collateral or any Disposition of Note Collateral described in Section 2.3 hereof at any time prior to payment in full of all Note Obligations; or 

        (b)  the
Trustee or any Noteholder obtains possession of any of the Revolver Collateral or receives any Proceeds from any Remedial Action with respect to Revolver Collateral
or Disposition of Revolver Collateral described in Section 2.3 at any time prior to payment in full of all Revolver Obligations; 

then,
in any such event, the party receiving such Proceeds shall (unless otherwise provided by Law) hold the same in trust for the party entitled to receive the same and as soon as reasonably
practicable after it shall have obtained actual knowledge thereof notify and pay over the same to the Revolver Agent for application to the Revolver Obligations (in the case of clause (b)) and
to the Trustee for application to the Note Obligations (in the case of clause (a)). 

        2.5    Payment Invalidated.    In the event that any of the Revolver Obligations or Note Obligations shall be paid in
full in cash and subsequently, for whatever reason (including but not limited to, an order or judgment for disgorgement of a preference under Title 11 of the United States Code, or any similar Law, or
the settlement of any claim in respect thereof), such formerly paid or satisfied Revolver Obligations or Note Obligations become unpaid or unsatisfied, the terms and conditions of this Agreement shall
be reinstated, notwithstanding any prior termination of this Agreement pursuant to Section 4, and all provisions of this Agreement shall again be
operative until either the Revolver Obligations or the Note Obligations are paid in full in cash and this Agreement is then terminated pursuant to  Section 4. 

        2.6    Notice of Acceleration; Notice of Remedial Action.    

        (a)  The
Revolver Agent agrees to deliver to the Trustee (i) prompt written notice of the acceleration of the Revolver Obligations pursuant to the Revolver Credit
Documents (such notice to be provided in the same manner and substantially contemporaneously with any notice provided to the Company) and (ii) written notice as soon as practicable after the
Revolver Agent shall have first commenced Remedial Action with respect to Revolver Collateral; and 

        (b)  The
Trustee agrees to deliver to the Revolver Agent (i) prompt written notice of the acceleration of the Note Obligations pursuant to the Note Documents (such
notice to be provided in the same manner and substantially contemporaneously with any notice provided to the Company) and (ii) written notice as soon as practicable after the Trustee shall have
first commenced Remedial Action with respect to Note Collateral. 

8

  

        2.7    Contesting Liens.    The Revolver Agent, for itself and on behalf of the Revolver Lenders, agrees that it shall
not contest the validity, perfection, priority or enforceability of any Noteholders' Lien in Note Collateral so long as such Lien is purported to be
effective under the Security Document pursuant to which such Lien was purported to have been created or granted. The Trustee on behalf of itself and on behalf of the Noteholders agrees that it shall
not contest the validity, perfection, priority or enforceability of any Revolver Lenders' Lien in Revolver Collateral so long as such Lien is purported
to be effective under the Security Document pursuant to which such Lien was purported to have been created or granted. 

        2.8    Further Assurances.    From time to time during the term hereof, each of the Revolver Agent and the Trustee, at
the reasonable request of the other and solely at the Company's expense, shall execute and deliver such other documents and instruments and take such other actions, as shall reasonably be necessary to
carry out the intentions or to facilitate the performance of this Agreement including, without limitation, in connection with any Remedial Action of which such Person has received notice in accordance
with the terms hereof. 

        2.9    Access to Collateral.    (a) Each of the Revolver Agent and the Trustee agrees to allow the other and
its respective agents and employees reasonable access, subject to the conditions set forth in Sections 2.9(b)-(f), to any OSM Property in its
possession or under its control, including, without limitation, any OSM Real Property and any customer lists, software, data bases, business records data and other books and records of the Company,
New CF&I, CF&I and CWR pertaining to any of the Collateral, for the purposes of any Remedial Action then permitted by both this Agreement and the relevant Security Documents; the Company, on its
behalf and on behalf of any of its Domestic Subsidiaries which is a party to any Security Documents, by acknowledging receipt of this Agreement consents to such access. 

        (b)  In
the event that any action has been taken to enforce the rights of the Noteholders or the Trustee with respect to the Note Collateral and the Trustee has obtained
possession and control of any or all of the Note Collateral pursuant to the Note Security Documents, upon reasonable notice to the Trustee by the Revolver Agent, the Trustee shall, to the extent
permitted by applicable Law, permit the Revolver Agent, its employees, agents, advisers and representatives, at the Revolver Agent's sole cost, expense, liability and risk, to enter upon the Note
Collateral for purposes of (i) assembling the Revolver Collateral located on such Note Collateral, (ii) selling any or all of the Revolver Collateral located on such Note Collateral,
whether in bulk, in lots or to retail customers in the ordinary course of business or otherwise, (iii) removing any or all of the Revolver Collateral located on such Note Collateral, and/or
(iv) taking reasonable actions to protect, secure, and otherwise enforce the rights of the Revolver Agent in and to the Revolver Collateral. 

        If
the Revolver Agent elects to enter upon the Note Collateral as aforesaid, all actions taken by the Revolver Agent or its employees, agents, advisors and representatives pursuant to
this Section 2.9(b) shall be taken in an efficient and workmanlike manner and in accordance with applicable Law. The Revolver Agent shall
compensate the Trustee in cash (which may be paid by wire transfer) for any damage to the Note Collateral caused by such assembling, selling, removing, protecting and/or securing of such Revolver
Collateral, and shall pay the Trustee in cash (which may be paid by check or wire transfer), within 15 days after demand, for all the direct costs and incremental costs of the Trustee related to the
provision and supervision of such access to the Note Collateral and the assembling, selling, removing, protecting and/or securing the Revolver Collateral. Upon not less than 35 days' prior written
notice from the Trustee requesting that the Revolver Collateral be removed from the Note Collateral, the Revolver Agent shall at its sole cost, expense, liability and risk either remove the Revolver
Collateral from the Note Collateral by the later of (i) the last day of the 120 day period referred to in Section 2.9(f) below and (ii) the 35th day after
Revolver Agent's receipt of such written notice, or pay, for any periods after such later 

9

 

day, the Trustee reasonable storage costs as provided in such notice. It is hereby understood that the payment of storage costs to the Trustee hereunder is intended to compensate the Trustee for
their actual out-of-pocket costs, and the term "reasonable storage costs" shall include only the actual out-of-pocket costs incurred by the Trustee in connection with the storage of the Revolver
Collateral on the site of the Note Collateral. 

        (c)  Nothing
in this Section 2.9 shall prevent the Trustee from entering into a contract of sale, transfer or other
disposition of, or otherwise foreclosing on, any of the Note Collateral so long as such contract provides, or such foreclosure is subject to providing the Revolver Agent with the same access to such
Collateral (including the execution and delivery of any agreements between third parties and the Revolver Agent to preserve the Revolver Agent's or any Revolver Lender's access to the Revolver
Collateral during the period described in clause (f) below) as provided by this Section 2.9. Nothing in this  Section 2.9 shall prevent the
Revolver Agent from entering into a contract of sale, transfer or other disposition of, or otherwise foreclosing
on, any of the Revolver Collateral so long as such contract provides, or such foreclosure is subject to providing the Trustee with the same access to such Collateral (including the execution and
delivery of any agreements between third parties and the Trustee) to preserve the Trustee's access to the Note Collateral during the period provided by this  Section 2.9. 

        (d)  The
Trustee agrees that it shall not take any action, legal, contractual or otherwise to, or commence any legal proceeding to, prevent the Revolver Agent's access to the
Note Collateral as provided in this Section 2.9 or the Revolver Agent's non-exclusive use of any Patents, Patent Licenses or General Intangibles
necessary or desirable to dispose of Revolver Collateral, to the extent that the Company and the Note Guarantors have granted the Revolver Agent the right to use any such property for such purpose. 

        (e)  The
Revolver Agent agrees that it shall not take any action, legal, contractual or otherwise to, or commence any legal proceeding to, prevent the Trustee's access to the
Revolver Collateral as provided in this Section 2.9 or the Trustee's non-exclusive use of any Patents, Patent Licenses or General Intangibles
necessary or desirable to dispose of Note Collateral, to the extent that the Company and the Note Guarantors have granted the Trustee the right to do so. 

        (f)    Notwithstanding
anything to the contrary in this Agreement, (i) the access to the Note Collateral by the Revolver Agent shall be permitted for a period not to
exceed (x) 120 days from the date the Revolver Agent takes any Remedial Action or receives notice from the Trustee that the Trustee has taken or intends to take any Remedial Action or
(y) such shorter period as is necessary for the Revolver Agent to sell or remove such Revolver Collateral from the OSM Real Property in which the Trustee is purported to have a Lien and
complete the Revolver Agent's exercise of remedies in respect thereof. 

        2.10    Trademark Licenses.    (a) The Trustee consents to the granting by the Company to the Revolver Agent of
a nonexclusive license to use each Trademark of the Company solely for the purpose of permitting the Revolver Agent and the Company to sell the Revolver Collateral in accordance with  Section 2.9.
Such license and such right shall be world-wide and royalty free. 

        (b)  The
Revolver Agent consents to the granting by the Company to the Trustee of a nonexclusive license to use each Trademark of the Company to enable the Trustee to remove
and realize on the Note Collateral. Such license and such right shall be world-wide and royalty free. 

        (c)  The
Trustee and the Revolver Agent each agree to cooperate with each other as reasonably requested to facilitate the realization upon Revolver Collateral by the Revolver
Agent and the realization upon the Note Collateral by the Trustee, including without limitation by granting each other licenses in intellectual property constituting Revolver Collateral or Note
Collateral, as the case may be. 

10

 

        3.    Reliance, Waivers, Etc.    

        3.1    Creation of Future Obligations.    (a) Subject to  Section 6.2, all of the Revolver Obligations shall be deemed to
have been funded by the Revolver Lenders and incurred by the Company, New CF&I,
CF&I and CWR in reliance upon this Agreement, and the Trustee and each Noteholder expressly waive notice to the Trustee or any Noteholder of the acceptance of the agreements set forth herein, notice
of reliance on such agreements and notice of the creation of any of the Revolver Obligations after the date hereof, and agree that the Revolver Lenders shall be entitled to rely upon the agreements
set forth herein at all times in creating the Revolver Obligations. 

        (b)  Subject
to Section 6.2, all of the Note Obligations shall be deemed to have been funded by the Noteholders and
incurred by the Company and the Note Guarantors in reliance upon this Agreement, and the Revolver Agent and each Revolver Lender expressly waive notice to the Revolver Agent or any Revolver Lender of
the acceptance of the agreements set forth herein, notice of reliance on such agreements and notice of the creation of any of the Note Obligations after the date hereof and agree
that the Noteholders shall be entitled to rely upon the agreements set forth herein at all times in creating the Note Obligations. 

        3.2    Responsibility for Credit Decisions; No Duty to Inform Other Parties.    (a) The Trustee has,
independently and without reliance on the Revolver Agent, any Revolver Lender or the directors, officers, agents, employees or attorneys of any thereof, and instead in reliance upon information
supplied to it on behalf of the Company and upon such other information as it has deemed appropriate (including, without limitation, all such information as it deemed advisable with respect to the
Company's compliance or non-compliance with any environmental Laws), made its own independent decision to enter into the Note Documents and to serve as Trustee thereunder, and the Trustee shall, for
itself and on behalf of the Noteholders, independently and without reliance upon the Revolver Agent, any Revolver Lender or the directors, officers, agents, employees or attorneys of any thereof,
continue to make its own independent analysis and decisions in acting or not acting under the Note Documents. 

        (b)  The
Revolver Agent has, independently and without reliance on the Trustee, any Noteholder or the directors, officers, agents, employees or attorneys of any thereof, and
instead in reliance upon information supplied to it on behalf of the Company and upon such other information as it has deemed appropriate (including, without limitation, all such information as it
deemed advisable with respect to the Company's compliance or non-compliance with any environmental Laws), made its own independent decision to enter into the Revolver Credit Documents and to serve as
the Revolver Agent thereunder, and the Revolver Agent shall, for itself and on behalf of the Revolver Lenders, independently and without reliance upon the Trustee, any Noteholder or the directors,
officers, agents, employees or attorneys of any thereof, continue to make its own independent analysis and decisions in acting or not acting under the Revolver Credit Documents. 

        (c)  Neither
the Revolver Agent nor any Revolver Lender shall have any present or future duty or responsibility to the Trustee or any Noteholder to advise the Trustee or any
Noteholder of information known to the Revolver Agent or any Revolver Lender regarding the financial condition of the Company or of any circumstances bearing upon the risk of nonpayment of the
Revolver Obligations or the Note Obligations and the Trustee, and each Noteholder acknowledges that neither the Revolver Agent nor any Revolver Lender has made any representations or warranties to the
Trustee or any Noteholder with respect to the due execution, delivery, validity or enforceability of the Revolver Credit Documents, the validity or perfection of the Revolver Lenders' Liens, the
validity or enforceability of the Revolver Obligations, the existence, condition or value of any of the Revolver Collateral or as to any other matter whatsoever. If, notwithstanding the foregoing, any
such information is conveyed by the Revolver Agent or any 

11

 

Revolver Lender to the Trustee or any Noteholder, neither the Revolver Agent nor any Revolver Lender shall have any responsibility to the Trustee or any Noteholder for the accuracy or completeness of
any such information, nor any continuing duty or responsibility to advise the Trustee or any Noteholder of any inaccuracy in such information that is subsequently discovered, or of any updated or
subsequent information, whether or not of like kind. 

        (d)  Neither
the Trustee nor any Noteholder shall have any present or future duty or responsibility to the Revolver Agent or any Revolver Lender to advise the Revolver Agent
or any Revolver Lender of information known to the Trustee or any Noteholder regarding the financial condition of the Company or of any circumstances bearing upon the risk of nonpayment of the Note
Obligations or the Revolver Obligations and the Revolver Agent on behalf of itself and each Revolver Lender acknowledges that neither the Trustee nor any Noteholder has made any representations or
warranties to the Revolver Agent or any Revolver Lender with respect to the due execution, delivery, validity or enforceability of the Note Documents, the validity or perfection of the Noteholders'
Liens, the validity or enforceability of the Note Obligations, the existence, condition or value of any of the Note Collateral or as to any other matter whatsoever. If, notwithstanding the foregoing,
any such information is conveyed by the Trustee or any Noteholder to the Revolver Agent or any Revolver Lender, neither the Trustee nor any Noteholder shall have any responsibility to the Revolver
Agent or any Revolver Lender for the accuracy or completeness of any such information, nor any continuing duty or responsibility to advise the Revolver Agent or any Revolver Lender of any inaccuracy
in such information that is subsequently discovered, or of any updated or subsequent information, whether or not of like kind. 

        3.3    Order of Enforcement of Remedial Actions.    Subject to all of the terms and conditions of this Agreement,
including, without limitation, Section 2.3 hereof: 

        (a)  The
Revolver Agent and the Revolver Lenders shall have the right at any and all times to determine the order in which (i) any Remedial Action or other recourse is
sought against the Company or any other obligor with respect to the Revolver Obligations, and (ii) any or all of the Revolver Lenders' Liens shall be enforced; and the Trustee, on behalf of
itself and each Noteholder, hereby waives any and all rights to require that the Revolver Agent pursue or exhaust any rights or remedies with respect to the Company or any OSM Property prior to
exercising its rights and remedies with respect to the Revolver Collateral or in any other manner to require the marshaling of assets or security in connection with the exercise by the Revolver Agent
or any Revolver Lender of any Remedial Action with respect to the Revolver Obligations and the Revolver Collateral. 

        (b)  The
Trustee and the Noteholders shall have the right at any and all times to determine the order in which (i) any Remedial Action or other recourse is sought
against the Company or any other obligor with respect to the Note Obligations, and (ii) any or all of the Noteholders' Liens shall be enforced; and the Revolver Agent, on behalf of itself and
the Revolver Lenders, hereby waives any and all rights to require that the Trustee pursue or exhaust any rights or remedies with respect to the Company or any OSM Property prior to exercising its
rights and remedies with respect to Note Collateral or in any other manner to require the marshaling of assets or security in connection with the exercise by the Trustee or any Noteholder of any
Remedial Action with respect to the Note Obligations and the Note Collateral. 

        3.4    Waiver of Liability for Actions Taken with Respect to Obligations and Collateral.    (a) Except as
provided in Section 2.9, neither the Revolver Agent nor any Revolver Lender shall have any liability to the Trustee or any Noteholder for, and
the Trustee, on behalf of itself and each Noteholder, hereby waives to the extent permitted by applicable Law any claim, right, action or cause of action which it may now or hereafter have against the
Revolver Agent or any Revolver 

12

 

Lender (including, without limitation, any and all claims, rights, actions or causes of action that the Trustee or any Noteholder may otherwise have against the Agent or any Revolver Lender) arising
out of, any and all actions which any Revolver Lender or the Revolver Agent, in good faith, takes or omits to take with respect to the Revolver Obligations, any obligor with respect to the Revolver
Obligations or any Revolver Collateral, including, without limitation, actions with respect to: the creation, perfection or continuation of Liens with respect to any Revolver Collateral; any Remedial
Action or Disposition of any Revolver Collateral; the release of any Revolver Collateral; the custody, valuation, protection, preservation, use or depreciation of any Revolver Collateral; the
realizing upon or failure to realize upon any Revolver Collateral; or the collection of the Revolver Obligations. To the extent that any of the foregoing waivers is not permitted by applicable Law,
the Trustee agrees that the applicable standard by which any non-waivable rights, duties or claims are to be measured shall be that neither the Revolver Agent nor any Revolver Lender shall have any
liability or responsibility to the Trustee or to any Noteholders for any actions or omissions other than actions or omissions constituting gross negligence or willful misconduct. 

        (b)  Neither
the Trustee nor any Noteholder shall have any liability to the Revolver Agent or the Revolver Lenders for, and the Revolver Agent, on behalf of itself and each
Revolver Lender, hereby waives any claim, right, action or cause of action which it may now or hereafter have against the Trustee or any Noteholder (including, without limitation, any and all claims,
rights, actions or causes of action that the Revolver Agent or any Revolver Lender may otherwise have against the Trustee or any Noteholder) arising out of, any and all actions which the Trustee or
any Noteholder, in good faith, takes or omits to take with respect to the Note Obligations, any obligor with respect to the Note Obligations or any Note Collateral, including, without limitation,
actions with respect to: the creation, perfection or continuation of Liens with respect to any Note Collateral; any Remedial Action or Disposition of any Note Collateral; the release of any Note
Collateral; the custody, valuation, protection, preservation, use or depreciation of any Note Collateral; the realizing upon or failure to realize upon any Note Collateral; or the collection of the
Note Obligations. To the extent that any of the foregoing waivers is not permitted by applicable Law, the Revolver Agent agrees that the applicable standard by which any non-waivable rights, duties or
claims are to be measured shall be that neither the Trustee nor any Noteholder shall have any liability or responsibility to the Revolver Agent or to any Revolver Lender for any actions or omissions
other than actions or omissions constituting gross negligence or willful misconduct. 

        4.    Term.    This Agreement shall be irrevocable and shall remain in full force and effect until (i) all of
the letters of credit issued pursuant to the Revolver Credit Agreement have been terminated or cash collateralized and the loans, notes and unpaid letter of credit drawings, together with interest,
fees and all other Revolver Obligations incurred thereunder are paid in full in cash and, all obligations to extend further advances pursuant to the Revolver Credit Agreement have been terminated,
subject to Section 2.5 hereof or (ii) the Notes, together with interest, fees and all other Note Obligations incurred under the Indenture
are paid in full in cash and all obligations pursuant to the Indenture have been terminated, subject to Section 2.5 hereof;  provided, however, that as
set forth in Sections 2.9, 2.10(a) and  2.10(b), the rights of the Revolver Agent pursuant to Sections 2.9 and  2.10 and the rights of the Trustee pursuant to Section 2.9 and  Section 2.10 shall
continue to apply in accordance with the terms thereof notwithstanding any sale of the Revolver Collateral or the Note
Collateral, as applicable. At the time of such termination, (a) if such termination occurs pursuant to clause (i) of the preceding sentence, the Revolver Agent, solely at the expense of
the Company, shall (x) deliver to the Trustee any Collateral then in its possession unless the Trustee declines or advises the Revolver Agent that possession of such
Collateral by the Trustee is not required pursuant to the Note Security Documents and (y) terminate or assign to the Trustee any landlords' agreements, warehouse operators' agreements and
similar agreements in favor of the Revolver Agent pertaining to the Collateral; and (b) if such termination occurs pursuant to clause (ii) of the preceding sentence, the Trustee, solely
at the expense 

13

 

of the Company, shall (x) deliver to the Revolver Agent any Collateral then in its possession unless the Revolver Agent declines or advises the Trustee that possession of such Collateral by
the Revolver Agent is not required pursuant to the Revolver Security Documents and (y) terminate or assign to the Revolver Agent any landlords' agreements, warehouse operators' agreements and
similar agreements in favor of the Trustee pertaining to the Collateral; and (c) if such termination occurs pursuant to clauses (i) and (ii) concurrently, then each of the Revolver Agent
and the Trustee, solely at the expense of the Company, shall (x) deliver to the Company any Collateral then in the possession of the Revolver Agent and the Trustee, respectively, and
(y) terminate any landlords' agreements, warehouse operators' agreements and similar agreements in favor of the Revolver Agent and the Trustee, respectively, pertaining to the Collateral. 

        5.    Representations and Warranties.    (a) Each of the Revolver Agent and the Trustee represents and warrants
to the other that (i) it has all requisite power and authority to execute, deliver and perform under this Agreement and (ii) the execution, delivery and performance by it of this
Agreement have been duly authorized by all requisite corporate or other action; 

        (b)  The
Revolver Agent represents and warrants that it is a duly organized and validly existing corporation under the laws of the State of Delaware; 

        (c)  The
Trustee represents and warrants that it is a duly organized and validly existing national banking association; and 

        (d)  By
its acknowledgment hereof, the Company hereby agrees to pay the reasonable costs and expenses incurred by the Revolver Agent and the Trustee in connection with this
Agreement, including, but not limited to the termination or assignment of the Revolver Collateral by the Revolver Agent and the Note Collateral by the Trustee, respectively. 

        6.    Miscellaneous.    

        6.1    Notices.    Whenever it is provided herein that any notice, demand, request, consent, approval, declaration or
other communication shall or may be given to or served upon either of the parties by the other, or whenever either of the parties desires to give or serve upon the other any such communication with
respect to this Agreement, each such notice, demand, request, consent, approval, declaration or other communication shall be in writing and either shall be delivered in person with receipt
acknowledged, delivered by reputable overnight courier or telecopied and confirmed
immediately in writing by a copy mailed by registered or certified mail, return receipt requested, postage prepaid, or mailed by registered or certified mail, return receipt requested, postage
prepaid, addressed as follows: 

if
to the Revolver Agent at: 

Textron
Financial Corporation

Commercial Lending Advisors

4550 North Point Parkway

Suite 400

Alpharetta, GA 30022

Attention: Eric Hubbard

Telecopier: (770) 360-1407 

if
to the Trustee at: 

U.S.
Bank National Association

101 East Fifth Street

St. Paul, MN 55101

Attention: Frank Leslie

Telecopier: (651) 244-0711 

14

 

or
at such other address or telecopy number as may be substituted by notice given as herein provided. The giving of any notice required hereunder may be waived in writing by the party entitled to
receive such notice. Every notice, demand, request, consent, approval, declaration or other communication hereunder shall be deemed to have been duly given or served on the date on which personally
delivered, with receipt acknowledged, on the date of delivery by reputable overnight courier service, on the date of telecopier transmission (so long as electronic confirmation of receipt thereof is
received). Failure or delay in delivering copies of any notice, demand, request, consent, approval, declaration or other communication to the persons designated above to receive copies shall in no way
adversely affect the effectiveness of such notice, demand, request, consent, approval, declaration or other communication. 

        6.2    Entire Agreement; Amendment.    This Agreement constitutes the entire agreement between the Revolver Agent and
the Trustee with respect to the subject matter hereof and supersedes all prior negotiations, understandings and agreements between the Revolver Agent and the Trustee in respect of
such subject matter, whether written or oral. This Agreement may be amended, modified or supplemented only by a written instrument executed by the Revolver Agent and the Trustee. 

        6.3    WAIVER OF JURY TRIAL; CONSENT TO JURISDICTION.    (a) EACH OF THE PARTIES HERETO WAIVES, TO THE FULLEST
EXTENT PERMITTED BY LAW, ALL RIGHT TO TRIAL BY JURY IN ANY ACTION OR PROCEEDING TO ENFORCE OR DEFEND ANY RIGHTS UNDER THIS AGREEMENT. 

        (b)  EACH
OF THE PARTIES HERETO SUBMITS FOR ITSELF AND ITS PROPERTY IN ANY LEGAL ACTION OR PROCEEDING RELATING TO THIS AGREEMENT OR FOR RECOGNITION AND ENFORCEMENT OF ANY
JUDGMENT IN RESPECT HEREOF, TO THE NON-EXCLUSIVE GENERAL JURISDICTION OF THE COURTS OF THE STATE OF NEW YORK AND THE COURTS OF THE UNITED STATES OF AMERICA FOR THE SOUTHERN DISTRICT OF NEW YORK
LOCATED IN NEW YORK COUNTY OF THE STATE OF NEW YORK, AND APPELLATE COURTS FROM ANY THEREOF. 

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

        6.5    Survival.    The representations and warranties of the parties in this Agreement shall survive the execution,
delivery and acceptance hereof by the parties hereto until the termination of this Agreement pursuant to Section 4 hereof but subject to  Section 2.5 hereof. 

        6.6    Counterparts.    This Agreement may be executed in any number of counterparts, all of which, taken together,
shall constitute one and the same instrument, and either of the parties hereto may execute this Agreement by signing any such counterpart. 

        6.7    GOVERNING LAW.    THIS AGREEMENT SHALL BE INTERPRETED, AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HERETO
DETERMINED, IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO CONTRACTS MADE AND PERFORMED IN THE STATE OF NEW YORK. 

        6.8    Parties.    This Agreement shall be binding upon, and shall inure to the benefit of, the parties hereto, the
Revolver Lenders which from time to time are parties to the Revolver Credit Agreement, the Noteholders and their respective successors and assigns. 

15

 

        6.9    No Third Party Beneficiaries.    Nothing contained in this Agreement shall be deemed to indicate that this
Agreement has been entered into for the benefit of the Company or any other Person except for the parties hereto, the Revolver Lenders, the Noteholders and their respective successors and assigns. 

        6.10    Legend.    Each of the Revolver Credit Documents and the Note Documents shall be made specifically subject to
the terms and conditions of this Agreement. 

        6.11    Section Titles.    The Section titles contained in this Agreement are and shall be without
substantive meaning or content of any kind whatsoever and are not a part of the agreement between the parties hereto. 

        6.12    Trustee or Revolver Agent not Liable.    (a) In no event shall the Trustee or (except for damages for
which the Revolver Agent is required to compensate the Trustee pursuant to Section 2.9(b)), the Revolver Agent be liable for special, punitive, indirect or consequential loss or damage of any
kind whatsoever (including but not limited to lost profit), even if the Trustee or the Revolver Agent has been advised of the likelihood of such loss or damage and regardless of the form of action. 

        (b)  Neither
the Trustee nor the Revolver Agent shall be responsible or liable for any failure or delay in the performance of its obligations under this Agreement arising out
of or caused, directly or indirectly, by circumstances beyond its reasonable control, including without limitation, acts of God; earthquakes; fires; floods; wars; civil or military disturbances;
sabotage; epidemics; riots; terrorist acts; interruptions, loss or malfunctions of utilities, computer (hardware or software) or communications service; accidents; labor disputes; and acts of civil or
military authority or governmental actions. 

[Signature
Pages Follow] 

16

IN WITNESS WHEREOF, this Agreement has been executed by the undersigned duly authorized signatories of the parties hereto as of the date and year first above written. 

	 	 	 	U.S. BANK NATIONAL ASSOCIATION

as Trustee
	

	

 	
 	

 	

 
	 	 	 	By:	    

	 	 	 	Name:

Title:
	

	

 	
 	

 	

 
	 	 	 	TEXTRON FINANCIAL CORPORATION,

as Revolver Agent
	

	

 	
 	

 	

 
	 	 	 	By:	    

	 	 	 	Name:

Title:
	

	

 	
 	

 	

 
	 	 	 	OREGON STEEL MILLS, INC.
	

	

 	
 	

 	

 
	 	 	 	By:	    

	 	 	 	Name:

Title:
	

Acknowledged and Agreed:	
 	

 	

 
	

NEW CF&I, INC.	
 	

 	

 
	

	

 	
 	

 	

 
	By:	    
	 	 	 
	Name:

Title:	 	 	 
	

	

 	
 	

 	

 
	CF&I STEEL, L.P.	 	 	 
	

By New CF&I, Inc.,

as General Partner	
 	

 	

 
	

	

 	
 	

 	

 
	By:	    
	 	 	 
	Name:

Title:	 	 	 
	

	

 	
 	

 	

 
	COLORADO AND WYOMING RAILWAY COMPANY	 	 	 
	

	

 	
 	

 	

 
	By:	    
	 	 	 
	Name:

Title:	 	 	 

SCHEDULE A  

REVOLVER COLLATERAL  

        All right, title and interest of the Company, CF&I, New CF&I and CWR (each a "Borrower") in, to and under the following property, whether now owned by or owing
to, or hereafter acquired by or arising in favor of such Borrower (including under any trade names, styles or deviations thereof), and whether owned or consigned by or to, or leased from or to, such
Borrower, and regardless of where located: 

        (a)  all
inventory (as defined in the NY UCC) of such Borrower, wherever located, including all Inventory sold by such Borrower which is returned to or repossessed by such
Borrower, and all Accessions thereto and Documents therefor (any and all such Inventory, Accessions and Documents being the "Inventory"); 

        (b)  all
(A) Accounts of such Borrower arising from the sale of Inventory or services rendered by such Borrower, (B) Chattel Paper and Instruments evidencing
any right to payment for Inventory sold or services rendered by such Borrower, and (C) rights of such Borrower now or hereafter existing in and to all security agreements and guaranties entered
into by or on behalf of the Account Debtors and securing or guaranteeing any such Accounts, Chattel Paper and Instruments (any and all such Accounts, Chattel Paper and Instruments being the
"Receivables", and any and all such security agreements and guaranties being the "Related Contracts"); 

        (c)  all
books, records, writings, databases and other information (A) evidencing, embodying or listing any Inventory, Receivables or Related Contracts or
(B) used in connection with the sale of Inventory or the collection of amounts due under Receivables and Related Contracts; 

        (d)  all
General Intangibles such as, without limitation, all goodwill, trademarks, trade names, service marks, patents, copyrights, industrial designs, other industrial or
intellectual property or rights therein, whether under license or otherwise, payment intangibles, programs, software, software codes, computer systems, customer lists, programming material, books,
catalogs and other printed materials, publications, indexes, lists, data and other documents and papers relating thereto, blueprints, designs, charts, and research and development, whether on paper,
recorded electronically or otherwise (but excluding any
intellectual property or other General Intangibles relating to production, property, plant and equipment, the operation thereof or the production and manufacturing processes) (collectively, the
"Intangibles"); 

        (e)  all
investment property (as defined in the NY UCC), including, without limitation, all stock or other equity interests (whether constituting investment property or not)
in material subsidiaries (excluding the Camrose Parties, LSI and Feralloy), all securities, whether certificated or uncertificated, security entitlements, securities accounts, bank accounts, Deposit
Accounts, cash collateral accounts, commodity contracts and commodity accounts, excluding the Note Collateral Account as defined in the Indenture in which products and Proceeds of Note Collateral may
be deposited (collectively, the "Investment Property"); 

        (f)    all
supporting obligations (as defined in the NY UCC) related to the property described above, including without limitation, letters of credit and guaranties issued in
support of Accounts (collectively, the "Supporting Obligations"), and all Instruments evidencing intercompany indebtedness; and 

        (g)  all
other related personal property and products, offspring, rents, issues, profits, returns, income and Proceeds of and from any and all of the foregoing Revolver
Collateral (including Proceeds which constitute property of the types described in (but not excluded from) clauses (a) through (f) above),
Proceeds deposited from time to time in any lock box or blocked account, and, to the extent not otherwise included, all payments under insurance with respect to any of the foregoing Revolver
Collateral (whether or not the Revolver Agent is the loss payee thereof) (collectively the "Proceeds") (except to the extent such Proceeds are invested
in real property and any improvements thereon and machinery and equipment constituting personal property, or other 

 

property and assets owned by the Company, CF&I and New CF&I which constitute Note Collateral), or any indemnity, warranty or guaranty, payable by reason of loss or damage to or otherwise with respect
to any of the foregoing Revolver Collateral. 

        The
terms "Account," "Account Debtor", "Accession", "Chattel Paper", "Deposit Accounts", "General Intangibles", "Instruments", "Documents" and "Proceeds" shall have the respective
meanings assigned to them in the Uniform Commercial Code in effect in the State of New York on the date hereof and as amended from time to time ("NY
UCC") (such terms being defined therein in the lower case). 

2

SCHEDULE B  

NOTE COLLATERAL  

        All of the right, title and interest of the Company, New CF&I and CF&I in, to and under the following property, in each case, whether now owned or existing or
hereafter acquired or arising, and wherever located (all of which being hereinafter collectively called the "Note Collateral") (capitalized terms used
in this Schedule B shall have the respective meanings set forth in the Note Security Agreements, unless indicated otherwise in this Schedule B): 

        (a)    all
Chattel Paper; 

        (b)    the
Note Collateral Account and all Trust Moneys (as such terms are defined in the Indenture), other moneys, securities, certificates, items and other
property on deposit therein; 

        (c)    all
Contracts; 

        (d)    all
Intellectual Property; 

        (e)    all
Documents; 

        (f)    all
Equipment; 

        (g)    all
Fixtures; 

        (h)    all
General Intangibles; 

        (i)    all
Instruments; 

        (j)    all
Insurance; 

        (k)  (i) all
other rights to the payment of money, including rents and other sums payable to Grantor under leases, rental agreements and other Chattel Paper and
insurance proceeds; (ii) all Collateral Records; (iii) all Collateral Support; (iv) all Supporting Obligations; and (v) all Accessions and additions to, parts and
appurtenances of, substitutions for and replacements of any of the foregoing (provided, however, that for the avoidance of doubt, the foregoing
clauses (a) through (k) shall not include (A) any property or assets described in (and not excluded from) clauses (i) through (vi) of the definition of "Revolver Collateral" or
(B) any Excluded Collateral); and 

        (l)    to
the extent not otherwise included in the foregoing, all products, offspring, rents, issues, profits, returns, income and Proceeds of and from any and all of the
foregoing Note Collateral (including Proceeds which constitute property of the type described in (and not excluded from) clauses (a) through (k) above and all collateral security and guarantees
given by any Person with respect to any of the foregoing, and in any event, including, without limitation, any and all (i) proceeds of any insurance (including, without limitation, all Net
Proceeds (as defined in the Indenture)), indemnity, warranty or guarantee payable to Trustee or to Grantor from time to time with respect to any of the foregoing Note Collateral, (ii) payments
(in any form whatsoever and including, without limitation, all Net Awards (as defined in the Indenture)) made or due and payable to Grantor from time to time in connection with any requisition,
confiscation, condemnation, seizure or forfeiture of all or any part of the foregoing Note Collateral by any Governmental Authority (or any Person acting under color of a Governmental Authority),
(iii) products of the foregoing Note Collateral, and (iv) other amounts from time to time paid or payable under or in connection with any of the foregoing Note Collateral. 

QuickLinks

Exhibit 4.6

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00042-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00042-of-00352.parquet"}]]