Document:

EX-10.4

EXHIBIT 10.4

FOREST CITY ENTERPRISES, INC.

2005 DEFERRED COMPENSATION PLAN FOR NONEMPLOYEE DIRECTORS

Forest City Enterprises, Inc. hereby establishes, effective as of January 1, 2005, the Forest
City Enterprises, Inc. 2005 Deferred Compensation Plan For Nonemployee Directors on the terms and
conditions hereinafter set forth. The purpose of the Plan is to provide funds upon termination of
service by death, retirement, Disability or otherwise for nonemployee Directors of Forest City
Enterprises, Inc. or their beneficiaries. It is intended that the Plan will assist in attracting
and retaining qualified individuals to serve as Directors.

ARTICLE I

DEFINITIONS

For the purposes hereof, the following words and phrases shall have the meanings set forth
below, unless their context clearly requires a different meaning:

1. “Account” shall mean the bookkeeping account(s) maintained by the Committee on behalf of
each Participant pursuant to Section 4 of Article II that is credited with Fees which are deferred
by a Participant, and the gains, losses, interest and other earnings on such amounts as determined
in accordance with Section 4 of Article II.

2. “Beneficiary” or “Beneficiaries” shall mean the person or persons, including one or more
trusts, designated by a Participant in accordance with the Plan to receive payment of the remaining
balance of the Participant’s Account in the event of the death of the Participant prior to receipt
of the entire amount credited to the Participant’s Account.

3. “Board” shall mean the Board of Directors of the Company.

4. “Change in Control” shall mean that:

(i) The Company is merged or consolidated or reorganized into or with another
corporation or other legal person, and as a result of such merger, consolidation or
reorganization less than a majority of the combined voting power of the securities of such
corporation or person that are outstanding immediately following the consummation of such
transaction is held in the aggregate by either (a) the holders of Voting Stock (as
hereinafter defined) of the Company immediately prior to such transaction or (b) Permitted
Holders;

(ii) The Company sells or otherwise transfers all or substantially all of its assets to
any other corporation or other legal person, and as a result of such sale or transfer less
than a majority of the combined voting power of the securities of such corporation or person
that are outstanding immediately following the consummation of such sale or transfer is held
in the aggregate by either (a) the holders of Voting Stock (as hereinafter defined) of the
Company immediately prior to such sale or transfer or (b) Permitted Holders;

(iii) There is a report filed on Schedule 13D or Schedule 14D-1 (or any successor
schedule, form or report) thereto, each as promulgated pursuant to the Securities Exchange
Act of 1934, as amended (the “Exchange Act”), disclosing that any person (as the term
“person” is used in Section 13(d)(3) or Section 14(d)(2) of the Exchange Act) other than a
Permitted Holder has become the beneficial owner (as the term “beneficial owner” is defined
under Rule 13d-3 or any successor rule or regulation promulgated under the Exchange Act) of
securities representing 20 percent or more of the combined voting power of the
then-outstanding securities entitled to vote generally in the election of the Board (the
“Voting Stock”);

(iv) The Company files a report or proxy statement with the Securities and Exchange
Commission pursuant to the Exchange Act disclosing in response to Form 8-K or Schedule 14A
(or any successor schedule, form or report or item therein) that a change in control of the
Company has or may have occurred or will or may occur in the future pursuant to any
then-existing contract or transaction, other than with respect to a Permitted Holder; or

(v) If during any period of two consecutive years, individuals who at the beginning of
any such period constitute the Board cease for any reason to constitute at least a majority
of the members thereof, unless the election, or the nomination for election by the Company’s
stockholders, of each member of the Board first elected during such period was approved by a
vote of at least two-thirds of the members of the Board then still in office who were
members of the Board at the beginning of any such period.

Notwithstanding the foregoing provisions of subsection (iii) or (iv) hereof, a “Change in Control”
shall not be deemed to have occurred for purposes of the Plan, either (1) solely because the
Company, a Subsidiary, or any Company-sponsored employee stock ownership plan or other employee
benefit plan of the Company, files or becomes obligated to file a report or a proxy statement under
or in response to Schedule 13D, Schedule 14D-1, Form 8-K or Schedule 14A (or any successor
schedule, form or report or item therein) under the Exchange Act, disclosing beneficial ownership
by it of shares of Voting Stock, whether in excess of 20 percent or otherwise, or because the
Company reports that a change in control of the Company has or may have occurred or will or may
occur in the future by reason of such beneficial ownership or (2) solely because of a change in
control of any Subsidiary. Notwithstanding the foregoing provisions of subsections (i-iv) hereof,
if, prior to any event described in subsections (i-iv) hereof that may be instituted by any person
who is not an officer or director of the Company, or prior to any disclosed proposal that may be
instituted by any person who is not an officer or director of the Company that could lead to any
such event, management proposes any restructuring of the Company that ultimately leads to an event
described in subsections (i-iv) hereof pursuant to such management proposal, then a “Change in
Control” shall not be deemed to have occurred for purposes of the Plan.

4A. “Class A Common Shares” shall mean the Class A Common Shares of the Company, or any
security into which such shares may be changed, as determined by the Committee in its sole
discretion, (i) in the event of a change in outstanding Class A Common Shares or in the capital
structure of the Company by reason of any share dividend, share split, reverse share split,
recapitalization, reorganization, merger, consolidation, combination, exchange or other relevant
change in the capitalization of the Company or (ii) in the event of any change in applicable laws
or any change in circumstances which results in or would result in any substantial dilution or
enlargement of the rights of any Participant in the Plan or which otherwise warrants equitable
adjustment because it interferes with the intended operation of the Plan.

5. “Code” shall mean the Internal Revenue Code of 1986, as amended.

6. “Committee” shall mean the Compensation Committee of the Board or such other Committee as
may be authorized by the Board to administer the Plan.

7. “Company” shall mean Forest City Enterprises, Inc. and its successors, including, without
limitation, the surviving corporation resulting from any merger or consolidation of Forest City
Enterprises, Inc. with any other corporation or corporations.

8. “Deferral Election” shall mean an Election Agreement completed by a Participant and filed
with the Committee that indicates the amount of his or her Fees that is or will be deferred under
the Plan.

9. “Director” shall mean a member of the Board.

10. “Disability” shall have the meaning given to such term in the Company’s Long Term
Disability Plan, as amended from time to time.

11. “Election Agreement” shall mean an agreement in the form that the Committee may designate
from time to time, including, without limitation, the “Election Agreement for 2005” that was filed
by Participants in December 2004.

12. “Eligible Director” shall mean a Director who is not an employee of the Company or any of
its Subsidiaries. An Eligible Director shall continue as such until the earlier of the date he or
she (i) ceases to be a Director or (ii) becomes an employee of the Company or any of its
Subsidiaries.

13. “Fee” or “Fees” shall mean any compensation payable in cash to a Director for his or her
services as a member of the Board or any committee thereof.

14. “Insolvent” shall mean that the Company has become subject to a pending voluntary or
involuntary proceeding under the United States Bankruptcy Code or has become unable to pay its
debts as they mature.

15. “Participant” shall mean any Eligible Director who has at any time made a Deferral
Election in accordance with Section 2 of Article II the Plan and who, in conjunction with his or
her Beneficiary, has not received a complete distribution of the amount credited to his or her
Account.

16. “Permitted Holder” shall mean (i) any of Samuel H. Miller, Albert B. Ratner, Charles A.
Ratner, James A. Ratner, Ronald A. Ratner or any spouse of any of the foregoing, and any trusts for
the benefit of any of the foregoing, (ii) RMS, Limited Partnership and any general partner or
limited partner thereof and any person (other than a creditor) that upon the dissolution or winding
up of RMS, Limited Partnership receives a distribution of capital stock of the Company, (iii) any
group (as defined in Section 13(d) of the Exchange Act) of two or more persons or entities that are
specified in the immediately preceding clauses (i) and (ii), and (iv) any successive recombination
of the persons or groups that are specified in the immediately preceding clauses (i), (ii) and
(iii).

17. “Plan” shall mean this deferred compensation plan, which shall be known as the Forest City
Enterprises, Inc. 2005 Deferred Compensation Plan For Nonemployee Directors.

18. “Subsidiary” shall mean any corporation, joint venture, partnership, unincorporated
association or other entity in which the Company has a direct or indirect ownership or other equity
interest and directly or indirectly owns or controls 50 percent or more of the total combined
voting or other decision-making power.

19. “Termination of Service” shall mean a separation from service as defined under Section
409A of the Code.

20. “Unforeseeable Emergency” shall mean a severe financial hardship to a Participant
resulting from (i) an illness or accident of the Participant or his or her spouse or dependent (as
defined in Section 152(a) of the Code), (ii) loss of the Participant’s property due to casualty, or
(iii) other similar or extraordinary circumstances arising as a result of events beyond the control
of the Participant.

21. “Year” shall mean a calendar year, commencing with calendar year 2005.

ARTICLE II

ELECTION TO DEFER

1. Eligibility and Participation. An Eligible Director may make a Deferral Election
with respect to receipt of 50% or 100% of his or her Fee for any Year in accordance with Section 2
of this Article. An Eligible Director’s entitlement to defer shall cease with respect to the Year
following the Year in which he or she ceases to be an Eligible Director.

2. Initial Deferral Elections. Subject to Sections 2(iii) and 2(iv), all Deferral
Elections made shall be irrevocable, shall be made on an Election Agreement filed with the
Committee and shall comply with the following requirements:

(i) The Deferral Election shall specify the amount of Fees that is to be deferred
within the limits under Section 3 of this Article as well as the time or times at which the
Participant has elected to have his or her Fees paid under Section 5 of this Article.

(ii) The Deferral Election shall be made prior to the first day of the Year for which
such Fees would otherwise be earned (except that a director who first becomes an Eligible
Director during the course of a Year, rather than as of the first day of a Year, shall make
such Deferral Election within thirty (30) days following the date the director first becomes
an Eligible Director, and such Deferral Election shall be effective only with regard to Fees
earned following the filing of the Election Agreement with the Committee).

(iii) Any Deferral Election shall continue to be effective from Year to Year until
revoked or modified by written notice from the Participant to the Committee, provided that
such written election to revoke or modify such Deferral Election must be made prior to the
beginning of the Year for which such Deferral Election is to be effective.

(iv) The Committee may, in accordance with Question and Answer 20 of Internal Revenue
Service Notice 2005-1, amend the Plan to allow a Participant during the Year 2005 to
terminate participation in the Plan or cancel his or her Deferral Election, provided
that (i) such amendment is enacted and effective on or before December 31, 2005 and
(ii) the amounts subject to such termination or cancellation are includible in the gross
income of the Participant in the taxable year in which the amounts are earned and vested.
In the event of any such termination or cancellation by a Participant, the amount subject to
such termination or cancellation shall be distributed to the Participant.

3. Amount Deferred. A Participant shall designate on the Election Agreement whether
50% or 100% of his or her Fee is to be deferred.

4. Accounts; Earnings. Fees that a Participant elects to defer shall be treated as if
they were set aside in an Account on the date the Fees would otherwise have been paid to the
Participant. Such Account will be credited with interest at such rate and in such manner as is
determined from time to time by the Committee.

(i) Such Account will be credited with gains, losses, interest and other earnings based
on investment directions made by the Participant, in accordance with investment deferral
crediting options and procedures established by the Committee, which shall include
procedures for prospective investment directions with respect to Fees that are to be
deferred under the Plan and for the reallocation of Fees (and gains, losses, interest and
other earnings thereon) credited to a Participant’s Account. The Committee specifically
retains the right in its sole discretion to change the investment deferral crediting options
and procedures from time to time. Unless otherwise specified by the Committee, the
investments in which a Participant’s Account may be deemed invested are (a) an interest
bearing obligation specified by the Committee from time to time and (b) Class A Common
Shares. Any dividends deemed payable with respect to Class A Common Shares that are deemed
credited to a Participant’s Account shall be credited to the Participant’s Account and shall
be deemed reinvested in Class A Common Shares.

(ii) By electing to defer any amount pursuant to the Plan, each Participant shall
thereby acknowledge and agree that the Company is not and shall not be required to make any
investment in connection with the Plan, nor is it required to make any investment in
connection with the Plan, nor is it required to follow the Participant’s investment
directions in any actual investment it may make or acquire in connection with the Plan. Any
amounts credited to a Participant’s Account with respect to which a Participant does not
provided investment direction shall be credited with gains, losses, interest and other
earnings as if such amounts were invested in an investment option to be selected by the
Committee in its sole discretion. Each Participant shall be 100% vested in the entire
amount credited to his or her Account at all times.

5. Time and Form of Payment of Account. Subject to Sections 7, 8, and 9 of this
Article, the amount of a Participant’s Account shall be paid as provided in this Section 5.

(i) The Deferral Election shall contain the Participant’s elections regarding the time
of the commencement of payment of the Participant’s Account. A Participant may elect to
commence payment as soon as practicable following (a) the date on which he or she incurs a
Termination of Service for any reason, including, without limitation, by reason of death,
retirement, or Disability, or (b) with the Committee’s written approval at the time the
Participant files his or her Election Agreement with the Committee, a specified date which
may be prior to or after the Participant’s Termination of Service. Notwithstanding the
foregoing, in the event that a Participant elects (with the Committee’s approval as
described in the preceding sentence) to commence payments on a specified date and prior to
such date he or she incurs a Termination of Service, payment of the Participant’s Account
shall commence, in the form elected pursuant to Section 5(ii), as soon as practicable
following the date of such Termination of Service.

(ii) The Deferral Election shall also contain the Participant’s elections regarding the
form of payment of the Participant’s Account. The Participant may elect to receive the
amount of his or her Account in one of the following forms: (a) a single, lump sum payment
or, (b) in a number of approximately equal annual installments, over a specified period not
exceeding five (5) years. Distributions shall be made in cash or in Class A Common Shares
(with fractional shares paid in cash), or any combination thereof, as elected by the
Participant, provided, however, that Class A Common Shares shall only be
distributable with respect to that portion of a Participant’s Account that is deemed
invested in such shares at the time of the distribution. In the event that the Account is
paid in installments, the amount of each installment shall be equal to the quotient obtained
by dividing the Participant’s Account balance as of the date of such installment payment by
the number of installment payments remaining to be made to or in respect of such Participant
at the time of the calculation. In the event that the Account is paid in installments, the
amount of such Account remaining unpaid shall continue to bear interest, as provided in
Section 4 of this Article. The payment of a single, lump-sum amount, or the payment of a
number of approximately equal annual installments, not in excess of five (5) payments, as
designated by the Participant in the Election Agreement, to a Participant (or his or her
Beneficiary) pursuant to this Section shall discharge all obligations of the Company to such
Participant (or his or her Beneficiary) under the Plan.

6. Subsequent Deferral Elections. A Participant may make a subsequent Deferral
Election to change the time of the commencement of payment(s) of his or her Account, the form of
payment of his or her Account, or both, if all of the following requirements are met:

(i) Such subsequent Deferral Election may not take effect until at least twelve (12)
months after the date on which the subsequent Deferral Election is made;

(ii) In the case of a subsequent Deferral Election related to a distribution of
deferred compensation not described in Section 7 or 9 of this Article, the first
distribution under such subsequent Deferral Election shall in all cases be deferred for a
period of not less than five (5) years from the date such distribution would otherwise have
been made; and

(iii) Any subsequent Deferral Election related to a distribution that is to be made at
a specified time or pursuant to a fixed schedule pursuant to Section 5 of this Article must
be made not less than twelve (12) months prior to the date of the first scheduled payment
under the prior Deferral Election.

7. Death of a Participant. In the event of the death of a Participant, the remaining
amount of the Participant’s Account shall be paid to the Beneficiary or Beneficiaries designated in
a writing on a form that the Committee may designate from time to time, (the “Beneficiary
Designation”) in accordance with the Participant’s Deferral Election, or in accordance with a
special payment election filed by the Participant with the Committee at the same time as the
Participant’s Deferral Election under Section 5 or 6 of this Article is filed with the Committee
that is to be operative and override any other payment election under the Participant’s Deferral
Election in the event of the death of the Participant. Any special payment election filed by a
Participant subsequent to the filing of his or her initial Deferral Election under Section 5 of
this Article must meet such additional requirements as the Committee determines are appropriate to
avoid the inclusion of the amounts subject to such special payment election in the gross income of
a Participant or Beneficiary under Section 409A(a)(1) of the Code. A Participant’s Beneficiary
Designation may be changed at any time prior to his or her death by the execution and delivery of a
new Beneficiary Designation. The Beneficiary Designation on file with the Company that bears the
latest date at the time of the Participant’s death shall govern. In the absence of a Beneficiary
Designation or the failure of any Beneficiary to survive the Participant, the amount of the
Participant’s Account shall be paid to the Participant’s estate in accordance with the elections
made on the Participant’s Deferral Election. In the event of the death of the Beneficiary or
Beneficiaries after the death of a Participant, the amount of the Participant’s Account shall be
paid to the estate of the last surviving Beneficiary in accordance with the elections made on the
Participants’ Deferral Election.

8. Small Payments. Notwithstanding the foregoing, if at any time following a
Participant’s Termination of Service the Participant’s Account balance does not exceed $10,000 (or
such other amount permitted under Section 409A of the Code), such Account shall be automatically
paid to such Participant in a single, lump-sum payment as soon as practicable thereafter.

9. Unforeseeable Emergency. Notwithstanding the foregoing, in the event of an
Unforeseeable Emergency and at the request of a Participant or Beneficiary, accelerated payment
shall be made to the Participant or Beneficiary of all or a part of his or her Account. Payments
of amounts as a result of an Unforeseeable Emergency may not exceed the amount necessary to satisfy
such Unforeseeable Emergency plus amounts necessary to pay taxes reasonably anticipated as a result
of the distribution(s), after taking into account the extent to which the hardship is or may be
relieved through reimbursement or compensation by insurance or otherwise by liquidation of the
Participant’s assets (to the extent the liquidation of such assets would not itself cause severe
financial hardship). Amounts payable under this Section 9 of Article II shall only be payable in
cash, and shall not be payable in Class A Common Shares.

ARTICLE III

ADMINISTRATION

The Company, through the Committee, shall be responsible for the general administration of the
Plan and for carrying out the provisions hereof. The Committee shall have all such powers as may
be necessary to carry out the provisions of the Plan, including the power to (i) resolve all
questions relating to eligibility for participation in the Plan and the amount in the Account of
any Participant and all questions pertaining to claims for benefits and procedures for claim
review, (ii) resolve all other questions arising under the Plan, including any factual questions
and questions of construction, and (iii) take such further action as the Company shall deem
advisable in the administration of the Plan. The actions taken and the decisions made by the
Committee hereunder shall be final and binding upon all interested parties. The Committee shall
provide a procedure for handling claims of Participants or their Beneficiaries under the Plan.
Such procedure shall provide adequate written notice within a reasonable period of time with
respect to the denial of any such claim as well as a reasonable opportunity for a full and fair
review by the Committee of any such denial. It is intended that the Plan comply with the
provisions of Section 409A of the Code, as enacted by the Jobs Creation Act of 2004, so as to
prevent the inclusion in gross income of any amounts deferred hereunder in a taxable year that is
prior to the taxable year or years in which such amounts would otherwise actually be distributed or
made available to Participants or Beneficiaries. This Plan shall be administered in a manner that
effects such intent.

ARTICLE IV

AMENDMENT AND TERMINATION

The Company reserves the right to amend or terminate the Plan at any time by action of the
Board; provided, however, that no such action shall adversely affect any Participant or Beneficiary
who has an Account, or result in any change in the timing or manner of payment of the amount of any
Account (except as otherwise permitted under the Plan), without the consent of the Participant or
Beneficiary (provided, however, that this limitation shall not apply to any
amendment or termination that is deemed necessary by the Company to ensure compliance with Section
409A of the Code). In the event that the Plan is terminated, the amounts allocated to a
Participant’s Account shall not be distributed to the Participant (or, in the case of his or her
death, his or her Beneficiary) unless permitted by Section 409A of the Code.

ARTICLE V

MISCELLANEOUS

1. Non-Alienation of Deferred Compensation. No right or interest under the Plan of
any Participant or Beneficiary shall be (i) assignable or transferable in any manner, (ii) subject
to alienation, anticipation, sale, pledge, encumbrance, attachment, garnishment or other legal
process or (iii) in any manner liable for or subject to the debts or liabilities of the Participant
or Beneficiary. Notwithstanding the foregoing, to the extent permitted by Section 409A of the
Code, the Committee shall honor a judgment, order or decree from a state domestic relations court
which requires the payment of part or all of a Participants’ or Beneficiary’s interest under this
Plan to an “alternate payee” as defined in Section 414(p) of the Code.

2. Interest of Participant. The obligation of the Company under the Plan to make
payment of amounts reflected in an Account merely constitutes the unsecured promise of the Company
to make payments from its general assets and no Participant or Beneficiary shall have any interest
in, or a lien or prior claim upon, any property of the Company. Further, no Participant or
Beneficiary shall have any claim whatsoever against any Subsidiary for amounts reflected in an
Account. Nothing in the Plan shall be construed as guaranteeing that an Eligible Director shall
remain a Director. It is the intention of the Company that the Plan be unfunded for tax purposes.
The Company may create a trust to hold funds to be used in payment of its obligations under the
Plan, and may fund such trust; provided, however, that any funds contained therein
shall remain liable for the claims of the Company’s general creditors. Notwithstanding the above,
upon the earlier to occur of (i) a Change in Control or (ii) a declaration by the Board that a
Change in Control is imminent, the Company shall promptly to the extent it has not previously done
so:

(a) establish an irrevocable trust, substantially in the form of the Rabbi Trust
attached hereto as Exhibit A (the funds of which shall be subject to the claims of
the Company’s general creditors) to hold funds to be used in payment of its obligations
under the Plan; and

(b) transfer to the trustee of such trust, to be added to the principal thereof, an
amount equal to (I) the aggregate amount credited to the Accounts of all of the Participants
and Beneficiaries under the Plan, less (II) the balance, if any, in the trust at such time.

3. Claims of Other Persons. The provisions of the Plan shall in no event be construed
as giving any other person, firm or corporation any legal or equitable right as against the Company
or any Subsidiary or the officers, employees or directors of the Company or any Subsidiary, except
any such rights as are specifically provided for in the Plan or are hereafter created in accordance
with the terms and provisions of the Plan.

4. Severability; Failure to Satisfy Section 409A. The invalidity and unenforceability
of any particular provision of the Plan shall not affect any other provision hereof, and the Plan
shall be construed in all respects as if such invalid or unenforceable provision were omitted. Any
provisions that would cause any amount deferred or payable under the Plan to be includible in the
gross income of any Participant or Beneficiary under Section 409A(a)(1) of the Code shall have no
force and effect unless and until amended to cause such amount to not be so includible (which
amendment may be retroactive to the extent permitted by Section 409A of the Code).

5. Governing Law. The provisions of the Plan shall be governed and construed in
accordance with the laws of the State of Ohio.

6. Headings; Interpretation.

(i) Headings in this Plan are inserted for convenience of reference only and are not to
be considered in the construction of the provisions hereof.

(ii) Any reference in this Plan to Section 409A of the Code will also include any
proposed, temporary or final regulations, or any other guidance, promulgated with respect to
such Section 409A by the U.S. Department of Treasury or the Internal Revenue Service.

(iii) For purposes of the Plan, the phrase “permitted by Section 409A of the Code,” or
words or phrases of similar import, shall mean that the event or circumstance that may occur
or exist only if permitted by Section 409A of the Code would not cause an amount deferred or
payable under the Plan to be includible in the gross income of a Participant or Beneficiary
under Section 409A(a)(1) of the Code.

EXECUTED at Cleveland, Ohio on March 24, 2005.

FOREST CITY ENTERPRISES, INC.

By: James Talton

Title: Executive Vice President – Human ResourcesEX-10.1

THIRD AMENDMENT AND WAIVER TO CREDIT AGREEMENT

THIS THIRD AMENDMENT AND WAIVER TO CREDIT AGREEMENT, dated as of March 28, 2005 (this
“Amendment”), to the Existing Credit Agreement (as defined below) is made by FERRO
CORPORATION, an Ohio corporation (the “Borrower”), and certain of the Lenders (such
capitalized term and other capitalized terms used in this preamble and the recitals below to have
the meanings set forth in, or are defined by reference in, Article I below).

W I T N E S S E T H:

WHEREAS, the Borrower, the Lenders, National City Bank, as Administrative Agent, and Credit
Suisse First Boston, as Syndication Agent, are parties to the Credit Agreement, dated as of August
31, 2001 (as amended or otherwise modified prior to the date hereof, the “Existing Credit
Agreement”, and as amended by this Amendment and as the same may be further amended,
supplemented, amended and restated or otherwise modified from time to time, the “Credit
Agreement”);

WHEREAS, the Borrower has requested that the Lenders amend and waive certain provisions of the
Existing Credit Agreement and the Lenders are willing, on the terms and subject to the conditions
hereinafter set forth, to amend and waive such provision of the Existing Credit Agreement as set
forth below;

NOW, THEREFORE, in consideration of the promises and of the mutual agreements contained
herein, the parties hereto hereby agree as follows:

ARTICLE I

DEFINITIONS

SECTION 1.1. Certain Definitions. The following terms when used in this Amendment
shall have the following meanings (such meanings to be equally applicable to the singular and
plural forms thereof):

“Amendment” is defined in the preamble.

“Borrower” is defined in the preamble.

“Credit Agreement” is defined in the first recital.

“Existing Credit Agreement” is defined in the first recital.

“Third Amendment Effective Date” is defined in Article III.

SECTION 1.2. Other Definitions. Terms for which meanings are provided in the Credit
Agreement are, unless otherwise defined herein or the context otherwise requires, used in this
Amendment with such meanings.

ARTICLE II

AMENDMENTS TO CREDIT AGREEMENT

Effective on (and subject to the occurrence of) the Third Amendment Effective Date, the
provisions of the Existing Credit Agreement referred to below are hereby amended in accordance with
this Article II. Except as expressly so amended, the Existing Credit Agreement shall
continue in full force and effect in accordance with its terms.

SECTION 2.1. Amendments to Section 1. Section 1 of the Existing Credit Agreement is
hereby amended as follows:

SECTION 2.1.1. Amendments to Section 1.1. Section 1.1 of the Existing Credit
Agreement is hereby amended by

(a) inserting the following definition in such Section in the appropriate alphabetical
sequence:

“Third Amendment” means the Third Amendment to Credit Agreement, dated as of
March 28, 2005, among the Borrower and the Lenders party thereto.

(b) Amending the definition of “Consolidated EBITDA” contained therein by deleting the
amount $20,000,000 contained in clause (A)(vii) thereof and replacing it with the amount
$50,000,000.

SECTION 2.2. Amendments to Section 9. Section 9 of the Existing Credit Agreement is
hereby amended as follows:

SECTION 2.2.1. Amendment to Section 9.6. Section 9.6 of the Existing Credit Agreement
is hereby amended by deleting the grid appearing therein and substituting the following grid in
replacement therefor:

	 	 	 
	Period	 	Leverage Ratio
	06/30/03 to 03/30/04

	 	3.75:1
	 
	 	 
	03/31/04 to 09/29/04

	 	3.50:1
	 
	 	 
	09/30/04 to 12/31/04

	 	3.25:1
	 
	 	 
	01/01/05 to 06/30/05

	 	3.75:1
	 
	 	 
	07/01/05 to 12/31/05

	 	3.50:1
	 
	 	 
	01/01/06 and thereafter

	 	3.25:1

SECTION 2.2.2. Amendment to Section 9.7. Section 9.7 of the Existing Credit Agreement
is hereby amended by deleting the grid appearing therein and substituting the following grid in
replacement therefor:

	 	 	 
	 	 	Fixed Charge
	Date	 	Coverage Ratio
	09/30/03

	 	1.50:1
	 
	 	 
	12/31/03

	 	1.50:1
	 
	 	 
	03/31/04

	 	1.65:1
	 
	 	 
	06/30/04

	 	1.65:1
	 
	 	 
	09/30/04

	 	1.75:1
	 
	 	 
	12/31/04

	 	1.75:1
	 
	 	 
	03/31/05

	 	1.40:1
	 
	 	 
	06/30/05

	 	1.40:1
	 
	 	 
	09/30/05

	 	1.50:1
	 
	 	 
	12/31/05

	 	1.50:1
	 
	 	 
	03/31/06

and thereafter

	 	

1.65:1

ARTICLE III

LIMITED WAIVER TO CREDIT AGREEMENT

Effective on (and subject to the occurrence of) the Third Amendment Effective Date, the
Lenders hereby (a) waive any (i) Default or Event of Default that may have occurred and be
continuing as a result of the Borrower’s failure to comply with the financial covenants set forth
in Section 9.6 and 9.7 of the Credit Agreement for the fiscal quarter ended March 31, 2004 and (ii)
increase in the Applicable LIBOR Margin or the Base Rate Margin resulting from the Leverage Ratio
being excess of 3.5 to 1.00 for such fiscal quarter pursuant to Section 2.7(h)(ii)(E) of the Credit
Agreement and (b) waive, until June 30, 2005, compliance by the Borrower with clauses (b) and (c)
of Section 8.1 of the Credit Agreement requiring the Borrower to deliver quarterly financial
statements with respect to the fiscal quarters ending June 30, 2004, September 30, 2004, December
31, 2004 and March 31, 2005 and a compliance certificate for each such fiscal quarter.

ARTICLE IV

CONDITIONS TO EFFECTIVENESS

This Amendment and the amendments contained herein shall become effective on the date (the
“Third Amendment Effective Date”) when each of the conditions set forth in this Article
III shall have been fulfilled to the satisfaction of the Administrative Agent.

SECTION 4.1. Counterparts. The Administrative Agent shall have received counterparts
hereof executed on behalf of the Borrower and the Required Lenders.

SECTION 4.2. Amendment Fee. The Administrative Agent shall have received for the
account of each Lender that has delivered its signature page in a manner and before the time
specified by the Administrative Agent, an amendment fee in an amount equal to 0.125% of the amount
of such Lender’s outstanding Commitment.

SECTION 4.3. Costs and Expenses, etc. The Administrative Agent shall have received
for the account of each Lender, all fees, costs and expenses due and payable pursuant to Section
12.1 of the Credit Agreement, if then invoiced.

SECTION 4.4. Satisfactory Legal Form. The Administrative Agent and its counsel shall
have received all information, and such counterpart originals or such certified or other copies of
such materials, as the Administrative Agent or its counsel may reasonably request, and all legal
matters incident to the effectiveness of this Amendment shall be satisfactory to the Administrative
Agent and its counsel. All documents executed or submitted pursuant hereto or in connection
herewith shall be reasonably satisfactory in form and substance to the Administrative Agent and its
counsel.

ARTICLE V

MISCELLANEOUS

SECTION 5.1. Cross-References. References in this Amendment to any Article or Section
are, unless otherwise specified, to such Article or Section of this Amendment.

SECTION 5.2. Credit Document Pursuant to Existing Credit Agreement. This Amendment is
a Credit Document executed pursuant to the Existing Credit Agreement and shall (unless otherwise
expressly indicated therein) be construed, administered and applied in accordance with all of the
terms and provisions of the Existing Credit Agreement, as amended hereby, including Section 12
thereof.

SECTION 5.3. Successors and Assigns. This Amendment shall be binding upon and inure
to the benefit of the parties hereto and their respective successors and assigns.

SECTION 5.4. Counterparts. This Amendment may be executed by the parties hereto in
several counterparts, each of which when executed and delivered shall be an original and all of
which shall constitute together but one and the same agreement. Delivery of an executed
counterpart of a signature page to this Amendment by facsimile shall be effective as delivery of a
manually executed counterpart of this Amendment.

SECTION 5.5. Governing Law. THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF NEW YORK.

SECTION 5.6. Full Force and Effect; Limited Amendment. Except as expressly amended
hereby, all of the representations, warranties, terms, covenants, conditions and other provisions
of the Existing Credit Agreement and the Credit Documents shall remain unchanged and shall continue
to be, and shall remain, in full force and effect in accordance with their respective terms. The
amendments set forth herein shall be limited precisely as provided for herein to the provisions
expressly amended herein and shall not be deemed to be an amendment to, waiver of, consent to or
modification of any other term or provision of the Existing Credit Agreement or any other Credit
Document or of any transaction or further or future action on the part of any Credit Party which
would require the consent of the Lenders under the Existing Credit Agreement or any of the Credit
Documents.

SECTION 5.7. Representations and Warranties. In order to induce the Lenders to
execute and deliver this Amendment, the Borrower hereby represents and warrants to the Lenders, on
the Third Amendment Effective Date, after giving effect to this Amendment, all statements set forth
in clause (b) of Section 6.2 of the Existing Credit Agreement are true and correct as of such date,
except to the extent that any such statement expressly relates to an earlier date (in which case
such statement was true and correct on and as of such earlier date).

1

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

FERRO CORPORATION

By:_/s/ Thomas M. Gannon     

	 	 	 	Title: Chief Financial Officer

2

CREDIT SUISSE FIRST BOSTON,

as a Lender

By:_/s/ Phillip Ho     

	 	 	 	Title: Director

By:_/s/ Rianka Mohan     

	 	 	 	Title: Associate

3

NATIONAL CITY BANK,

as a Lender

By:_/s/ Robert S. Coleman     

	 	 	 	Title: Senior Vice President

4

THE BANK OF NEW YORK,

as a Lender

By:_/s/ Kenneth McDonnell     

	 	 	 	Title: Vice President

5

THE BANK OF TOKYO-MITSUBISHI, LTD. CHICAGO
BRANCH,

as a Lender

By:_/s/ Shinichiro Munechika     

	 	 	 	Title: Deputy General Manager

6

CITICORP USA, INC.,

as a Lender

By:_/s/ Stuart Miller     

	 	 	 	Title: Vice President

7

FIFTH THIRD BANK,

as a Lender

By:_/s/ Martin H. McGinty     

	 	 	 	Title: Vice President

8

BAYERISCHE HYPO- UND VEREINSBANK AG, NEW YORK
BRANCH,

as a Lender

By:_/s/ Ken Hamilton     

	 	 	 	Title: Director

By:_/s/ Luc Perrot     

	 	 	 	Title: Associate Director

9

KEYBANK NATIONAL ASSOCIATION,

as a Lender

By:_/s/ Marianne T. Meil     

	 	 	 	Title: Vice President

10

THE NORINCHUKIN BANK,

as a Lender

By:_/s/ Masanori Shoji     

	 	 	 	Title: Joint General Manager

11

SUNTRUST BANK,

as a Lender

By:_/s/ William C. Humphries     

	 	 	 	Title: Managing Director

12

FIRSTMERIT BANK, N.A.,

as a Lender

By:_/s/ Robert Dracon     

	 	 	 	Title: Vice President

13

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00081-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00081-of-00352.parquet"}]]