Document:

<PAGE>
                                                                    EXHIBIT 10.1
                                                                  EXECUTION COPY

                                    AMENDMENT NO. 3, WAIVER AND AGREEMENT dated
                           as of December 31, 2001 (this "Amendment"), to the
                           Credit Agreement dated as of April 30, 1997, as
                           amended and restated as of September 12, 1997, as of
                           April 3, 1998, and as of September 8, 1998, and as
                           further amended as of November 18, 1998 and March 23,
                           2001 (the "Credit Agreement"), among NEENAH FOUNDRY
                           COMPANY, a Wisconsin corporation (the "Borrower"),
                           NFC CASTINGS, INC., a Delaware corporation
                           ("Holdings"), the Lenders from time to time party
                           thereto (the "Lenders"), and JPMORGAN CHASE BANK, a
                           New York banking corporation formerly named The Chase
                           Manhattan Bank, as issuing bank, as administrative
                           agent (in such capacity, the "Administrative Agent")
                           and as collateral agent (in such capacity, the
                           "Collateral Agent") for the Lenders.

                  A. Pursuant to the Credit Agreement, the Lenders have extended
and have agreed to extend credit to the Borrower on the terms and subject to the
conditions set forth therein.

                  B. The Borrower has informed the Lenders that an Event of
Default has occurred under the Credit Agreement as a result of the failure of
the Borrower and Holdings to comply with Sections 6.11, 6.12, 6.13 and 6.15 of
the Credit Agreement as of and for the period ending on December 31, 2001.

                  C. The Borrower and Holdings have informed the Administrative
Agent that from time to time and as part of one or more transactions or series
of related transactions, the Borrower proposes to liquidate, sell or otherwise
dispose of substantially all the assets or all the Capital Stock of Cast Alloys,
Inc. (the "Cast Alloys Liquidation").

                  D. The Borrower and Holdings have informed the Administrative
Agent that Cast Alloys, Inc. has ceased all manufacturing and distribution
operations, terminated substantially all of its employees, surrendered certain
property and equipment in Mexico and, from time to time, sold certain inventory
and equipment and compromised or settled certain claims, outside of the ordinary
course of business (collectively, the "Prior Actions").

                  E. The Borrower and Holdings have requested certain waivers
and amendments of the Credit Agreement as set forth herein. The Required Lenders
are willing to grant such waivers and to amend the Credit Agreement on the terms
and subject to the conditions set forth herein.

                  F. Capitalized terms used and not otherwise defined herein
shall have the meanings assigned to them in the Credit Agreement.

<PAGE>
                                                                               2

                  Accordingly, in consideration of the mutual agreements herein
contained and other good and valuable consideration, the sufficiency and receipt
of which are hereby acknowledged, the parties hereto agree as follows:

                  SECTION 1. Waivers. (a) Subject to paragraph (b) below, the
Required Lenders hereby waive compliance by Holdings and the Borrower with the
provisions of Sections 6.11, 6.12, 6.13 and 6.15 of the Credit Agreement.

                  (b) The waiver provided for by paragraph (a) above shall be
effective only during the period (the "Waiver Period") commencing on and as of
December 31, 2001, and ending on and including December 31, 2003, and
thereafter, in respect of any period ending after December 31, 2003, (i) the
provisions of Sections 6.11, 6.12, 6.13 and 6.15 of the Credit Agreement shall
apply in all respects as in effect on the date hereof without regard to such
waiver and (ii) the Administrative Agent and the Lenders shall have all rights
and remedies under the Credit Agreement that they would have had if such waiver
had never been granted.

                  (c) The Required Lenders hereby consent to the Cast Alloys
Liquidation and waive compliance by the Borrower and Holdings with Sections
5.01(a) (with respect to the existence of Cast Alloys, Inc. and its
subsidiaries) and 6.05 of the Credit Agreement, in each case to the extent (but
only to the extent) necessary to consummate the Cast Alloys Liquidation;
provided, however, that, to the extent Holdings, the Borrower or any Subsidiary
receives any cash payment in connection with the Cast Alloys Liquidation, the
Borrower shall prepay the Term Loans in accordance with Section 2.13 of the
Credit Agreement by an amount equal to 100% of the net cash proceeds thereof
(less the amount of accrued expenses and accounts payable of Cast Alloys that
are required to be paid).

                  (d) The Required Lenders hereby consent to the Prior Actions
taken with respect to the Cast Alloys Liquidation.

                  (e) The Required Lenders hereby release, and hereby authorize
and direct the Collateral Agent to execute any and all further documents
necessary or desirable to evidence the release, from the Lien of the Security
Documents, the assets of Cast Alloys, Inc. and its subsidiaries, from time to
time to permit the Cast Alloys Liquidation on or after the effective date
thereof.

                  SECTION 2. Agreements. (a) Effective on and as of the
Amendment Effective Date (as defined below), the Total Revolving Credit
Commitment shall be permanently reduced to $29,564,676 (the "Reduced Revolving
Credit Commitment"). In connection with such reduction, the Required Lenders
hereby waive compliance by the Borrower with the notice requirement of Section
2.09 of the Credit Agreement and with such section's requirement that such
reduction be in an integral multiple of $500,000.

                  (b) The Required Lenders hereby authorize and direct the
Collateral Agent to enter into amendments of the Security Documents and the
Guarantees to the extent necessary to permit Cash Management Obligations (as
defined below) to be "Obligations" (as defined in such Security Documents and
Guarantees), and each of the

<PAGE>
                                                                               3

Borrower and Holdings hereby agrees to execute, and to cause each other Loan
Party to execute, each such amendment.

                  (c) On or after the Amendment Effective Date, each of Holdings
and the Borrower agrees that it will not, and it will not permit any Domestic
Subsidiary to, maintain cleared and collected cash (other than cash supporting
payroll obligations) or Permitted Investments outside the Lockbox System (as
defined in the Security Agreement) in an aggregate amount in excess of $200,000.

                  (d) On or prior to the Amendment Effective Date, the
Administrative Agent, after consultation with the Lenders, shall propose to
Holdings and the Borrower three or more independent firms as potential financial
advisors to Holdings and the Borrower. Holdings and the Borrower hereby agree
that, on or prior to June 15, 2002, they will engage one of such proposed firms,
or another financial advisor reasonably acceptable to the Required Lenders (the
"Financial Advisor"), as their financial advisor, with the scope of such
engagement to include the items described in Exhibit C hereto. Holdings and the
Borrower shall cooperate with the Financial Advisor and permit the Financial
Advisor such access to their respective officers, directors, management,
accountants, advisors, properties, financial records and other data as shall be
necessary for the Financial Advisor to perform its engagement. Holdings and the
Borrower shall permit and direct the Financial Advisor to confer with, and to
make its analyses, evaluations and reports available to, the Lenders, subject to
the confidentiality requirements of Section 9.16 of the Credit Agreement.

                  SECTION 3. Amendments. (a) Section 1.01 of the Credit
Agreement is hereby amended as follows:

                  (i) The following definitions are hereby inserted in the
         appropriate alphabetical order therein:

                          (A) ""Amendment No. 3" shall mean Amendment No. 3,
                  Waiver and Agreement dated as of December 31, 2001, to this
                  Agreement.";

                          (B) ""Cash Management Obligations" shall mean all
                  obligations of the Loan Parties arising in the ordinary course
                  of business under or in respect of Cash Management Services
                  provided to any Loan Party by any Lender or any Affiliate of a
                  Lender (each, a "Cash Management Lender"), except to the
                  extent that such obligations result from the gross negligence
                  or willful misconduct of such Cash Management Lender.";

                          (C) ""Cash Management Services" shall mean any and all
                  services provided under the Lockbox and Depository Agreement
                  and any other cash management services provided by a Cash
                  Management Lender including without limitation, wire transfers
                  or ACH transactions authorized by the Lockbox and Depository
                  Agreement and provided at the request of a Grantor."

<PAGE>
                                                                              4

                          (D) ""CVC Secured PIK Notes" shall mean the 14% senior
                  secured pay-in-kind notes due December 31, 2005 of the
                  Borrower, substantially on the terms attached as Exhibit A to
                  Amendment No. 3."; and

                          (E) ""Intercreditor Agreement" shall mean the
                  Intercreditor Agreement by and among the Borrower, Holdings,
                  certain Subsidiaries of the Borrower, the Collateral Agent and
                  CVC, substantially in the form attached as Exhibit B to
                  Amendment No. 3.".

                  (ii) The definition of the term "Applicable Percentage" is
         hereby amended and restated in its entirety to read as follows:

                          ""Applicable Percentage" shall mean, for any day
                  commencing on and including the Amendment Effective Date (as
                  defined in Amendment No. 3), with respect to any Loan, or with
                  respect to the Commitment Fees, as the case may be, the
                  applicable percentage set forth below under the caption
                  "Eurodollar Spread--Tranche A Term Loans, Revolving Loans and
                  Acquisition Loans", "Eurodollar Spread--Tranche B Term Loans
                  and Additional Tranche B Term Loans", "ABR Spread--Tranche A
                  Term Loans, Revolving Loans and Acquisition Loans", "ABR
                  Spread--Tranche B Term Loans and Additional Tranche B Term
                  Loans" or "Fee Percentage", as the case may be:

<TABLE>
<CAPTION>
----------------------- --------------------- -------------------- --------------------- --------------------
      Eurodollar                                  Eurodollar
Spread-Tranche A Term    ABR Spread-Tranche    Spread-Tranche B     ABR Spread-Tranche
   Loans, Revolving        A Term Loans,        Term Loans and       B Term Loans and
Loans and Acquisition   Revolving Loans and   Additional Tranche    Additional Tranche     Fee Percentage
        Loans            Acquisition Loans       B Term Loans          B Term Loans
----------------------- --------------------- -------------------- --------------------- --------------------
<S>                     <C>                   <C>                  <C>                   <C>
        4.50%                  3.50%                 4.75%                3.75%                 .50%
----------------------- --------------------- -------------------- --------------------- --------------------
</TABLE>

                  (iii) The definition of the term "Interest Payment Date" is
         hereby amended and restated in it entirety to read as follows:

                          ""Interest Payment Date" shall mean (a) with respect
                  to any Loan (including any Eurodollar Loan), (i) the last
                  Business Day of each month, and (ii) the Revolving Credit
                  Maturity Date, the Tranche A Maturity Date, the Tranche B
                  Maturity Date, the Additional Tranche B Maturity Date or the
                  Acquisition Loan Maturity Date, as applicable, and (b) with
                  respect to any Eurodollar Loan, the last day of the Interest
                  Period applicable to the Borrowing of which such Loan is a
                  part and the date of any prepayment of such Borrowing or
                  conversion of such Borrowing to an ABR Borrowing."

<PAGE>
                                                                               5

                  (iv) The definition of the term "Interest Period" is hereby
         amended and restated in its entirety to read as follows:

                           ""Interest Period" shall mean, as to any Eurodollar
                  Borrowing, the period commencing on the date of such Borrowing
                  and ending on the numerically corresponding day (or, if there
                  is no numerically corresponding day, on the last day) in the
                  calendar month that is 1, 2, 3, or 6 months thereafter, as the
                  Borrower may elect; provided, however, that if any Interest
                  Period would end on a day other than a Business Day, such
                  Interest Period shall be extended to the next succeeding
                  Business Day, unless such next succeeding Business Day would
                  fall in the next calendar month, in which case such Interest
                  Period shall end on the next preceding Business Day."

                  (v) The definition of the term "Revolving Credit Maturity
         Date" is hereby amended and restated in its entirety to read as
         follows:

                           ""Revolving Credit Maturity Date" shall mean
                  September 30, 2003."

                  (b) Section 2.06 of the Credit Agreement is hereby amended and
restated in its entirety to read as follows:

                  "SECTION 2.06. Interest on Loans. (a) Subject to the
         provisions of Section 2.07, the Loans comprising each ABR Borrowing
         shall bear interest (computed on the basis of the actual number of days
         elapsed (including the first day but excluding the last day) over a
         year of 365 or 366 days, as the case may be, when the Alternate Base
         Rate is determined by reference to the Prime Rate and over a year of
         360 days at all other times) at a rate per annum equal to the Alternate
         Base Rate plus the Applicable Percentage in effect from time to time.

                  (b) Subject to the provisions of Section 2.07, the Loans
         comprising each Eurodollar Borrowing shall bear interest (computed on
         the basis of the actual number of days elapsed (including the first day
         but excluding the last day) over a year of 360 days) at a rate per
         annum equal to the Adjusted LIBO Rate for the Interest Period in effect
         for such Borrowing plus the Applicable Percentage in effect from time
         to time.

                  (c) Notwithstanding the foregoing, (i) with respect to all
         Loans outstanding on or after November 1, 2002, the interest rate
         otherwise applicable thereto pursuant to paragraph (a) or (b) above
         shall be increased by 0.25% per annum, and (ii) with respect to all
         Loans outstanding on or after May 1, 2003, the interest rate otherwise
         applicable thereto pursuant to paragraph (a) or (b) above shall be
         increased by an additional 0.25% per annum (the amount of all
         additional interest described in this paragraph (c) is referred to
         herein as the "Deferred Interest").

<PAGE>
                                                                               6

                  (d) Interest on each Loan shall be payable on the Interest
         Payment Dates applicable to such Loan except as otherwise provided in
         this Agreement; provided, however, that Deferred Interest on the
         Acquisition Loans, Revolving Loans, Tranche A Term Loans, Tranche B
         Term Loans or Additional Tranche B Term Loans shall accrue and shall be
         payable in full on the Acquisition Loan Maturity Date, the Revolving
         Credit Maturity Date, the Tranche A Maturity Date, the Tranche B
         Maturity Date and the Additional Tranche B Maturity Date, respectively,
         or upon the earlier acceleration of the maturity of or payment in full
         of such Loans. The applicable Alternate Base Rate or Adjusted LIBO Rate
         for each Interest Period or day within an Interest Period, as the case
         may be, shall be determined by the Administrative Agent, and such
         determination shall be conclusive absent manifest error."

                  (c) Section 5.04(g) of the Credit Agreement is hereby amended
and restated in its entirety to read as follows:

                  "(g) (i) within 20 days after the end of the first two months
         of each fiscal quarter, its consolidated balance sheet and related
         statements of operations, stockholders' equity and cash flows showing
         the financial condition of the Borrower and its consolidated
         Subsidiaries as of the end of and for such month and the results of its
         operations and the operations of such Subsidiaries as of the end of and
         for such month, all certified by one of its Financial Officers as
         fairly presenting in all material respects the financial condition and
         results of operations of the Borrower and its consolidated Subsidiaries
         on a consolidated basis in accordance with GAAP consistently applied,
         subject to normal year-end audit adjustments; and (ii) within 20 days
         after the end of each fiscal quarter, a reasonably detailed calculation
         indicating whether or not the Borrower was in compliance (determined as
         of the last day of such fiscal quarter) with Section 6.12 for the
         period of four consecutive fiscal quarters then ended."

                  (d) Section 6.01 of the Credit Agreement is hereby amended as
         follows:

                  (i) by deleting the word "and" at the end of subsection (j);

                  (ii) by relettering existing subsection (k) to subsection (l);
         and

                  (iii) by inserting the following new subsection (k):

                  "(k) the CVC Secured PIK Notes in an initial aggregate
         principal amount of $9,900,000, plus the CVC Secured PIK Notes issued
         in addition thereto in respect of the interest owed thereon; and".

                  (e) Section 6.02 of the Credit Agreement is hereby amended as
         follows:

                  (i) by deleting the word "and" at the end of subsection (k);

                  (ii) by relettering existing subsection (l) to subsection (m);
         and

                  (iii) by inserting the following new subsection (l):

<PAGE>
                                                                               7

                  "(l) Liens on the Collateral to secure the CVC Secured PIK
         Notes; provided that such Liens shall be subject to the terms and
         provisions of the Intercreditor Agreement; and".

                  (f) Section 6.09 of the Credit Agreement is hereby amended by
adding the following paragraph at the end thereof:

                  "(d) Consent to any assignment or transfer (other than to CVC
         or an Affiliate thereof) of any or all of the CVC Secured PIK Notes."

                  (g) Section 6.12 of the Credit Agreement is hereby amended and
restated in its entirety to read as follows:

                  "SECTION 6.12. Minimum Adjusted EBITDA. Permit the
         Consolidated EBITDA, excluding any portion thereof attributable to Cast
         Alloys, Inc. and its subsidiaries, for any period of four consecutive
         fiscal quarters ending during any period set forth below to be less
         than the amount set forth below for such period:

<TABLE>
<CAPTION>
                           Period                                Amount
                           ------                                ------
<S>                                                           <C>
         March 31, 2002 through September 30, 2002            $55,000,000

         October 1, 2002 through December 31, 2002            $60,000,000

         January 1, 2003 through March 31, 2003               $65,000,000

         April 1, 2003 through September 30, 2003             $70,000,000

         October 1, 2003 through December 31, 2003            $75,000,000"
</TABLE>

                  (h) A new Section 6.16 shall be inserted after Section 6.15 of
the Credit Agreement and shall read as follows:

                  "SECTION 6.16. Minimum Liquidity. Permit the sum of the
         aggregate amount of the Borrower's cash and Permitted Investments and
         the unused and available Revolving Credit Commitments as of any
         interest payment date in respect of the Senior Subordinated Notes or
         any Qualified Subordinated Debt set forth below to be less than the
         amount set forth below for such date, immediately after giving effect
         to the payment of interest thereon due on such date:

<TABLE>
<CAPTION>
         Interest payment date
         occurring on or about                                Amount
         ---------------------                                ------
<S>                                                         <C>
         November 1, 2002                                   $1,500,000

         May 1, 2003                                        $4,000,000

         November 1, 2003                                   $6,500,000"
</TABLE>

<PAGE>
                                                                               8

                  SECTION 4. Representations and Warranties. (a) To induce the
other parties hereto to enter into this Amendment, each of Holdings and the
Borrower represents and warrants to each other party hereto that after giving
effect to this Amendment, (a) the representations and warranties set forth in
Article III of the Credit Agreement are true and correct in all material
respects on and as of the date hereof, except to the extent such representations
and warranties expressly relate to an earlier date, and (b) no Default or Event
of Default has occurred and is continuing.

                  SECTION 5. Amendment Fee. The Borrower agrees to pay to each
Lender that executes and delivers a copy of this Amendment to the Administrative
Agent (or its counsel) at or prior to 12:00 pm New York City time, on April 26,
2002 (each, a "Consenting Lender"), through the Administrative Agent, the
following non-refundable amendment fees (the "Amendment Fees"):

                  (a) in the case of each Consenting Lender that is a Revolving
         Credit Lender, in consideration for the agreement of such Revolving
         Credit Lender to extend the Revolving Credit Maturity Date, a fee in an
         amount equal to 0.50% of such Revolving Credit Lender's Pro Rata
         Percentage of the Reduced Revolving Credit Commitment; and

                  (b) in the case of each Consenting Lender (including each
         Consenting Lender that is a Revolving Credit Lender), a fee in an
         amount equal to 0.25% of the sum of the aggregate principal amount
         outstanding of such Lender's Loans, L/C Exposure and unused Commitments
         (without giving effect to the reduction of the Revolving Credit
         Commitment effected by Section 2(a) hereof) as of such date;

provided, that the Borrower shall have no liability for any such Amendment Fees
if this Amendment does not become effective in accordance with Section 6 below.
Such Amendment Fees shall be payable in immediately available funds on, and
subject to the occurrence of, the Amendment Effective Date.

                  SECTION 6. Conditions to Effectiveness.

  This Amendment shall become effective at such time (the "Amendment Effective
Date") as:

                  (a) the Administrative Agent (or its counsel) shall have
         received counterparts hereof which, when taken together, bear the
         signatures of the Borrower, Holdings, the Required Lenders and each
         Revolving Credit Lender;

                  (b) CVC or an Affiliate thereof shall have contributed,
         directly or indirectly, not less than $9.90 million in cash to the
         Borrower in exchange for the CVC Secured PIK Notes (as defined above);
         provided, that (i) principal and interest on such notes shall not be
         payable in cash pursuant to the terms and provisions thereof until
         December 31, 2005, and (ii) all Liens securing such notes shall be
         subject to the terms and provisions of the Intercreditor Agreement (as
         defined above);

<PAGE>
                                                                               9

                  (c) the Intercreditor Agreement shall have been duly executed
         by the parties thereto, shall have been delivered to the Administrative
         Agent and shall be in full force and effect;

                  (d) the Administrative Agent shall have received payment of
         (i) the Amendment Fees and (ii) the accrued and unpaid Commitment Fees
         in respect of the portion of the Revolving Credit Commitments reduced
         pursuant to Section 2(a) hereof; and

                  (e) all reasonable out-of-pocket expenses incurred by the
Administrative Agent in connection with the Loan Documents or the transactions
contemplated thereby, for which invoices shall have been submitted to the
Borrower on or prior to the Amendment Effective Date, shall have been paid by
the Borrower.

                  Without limiting the foregoing, (i) the amendments set forth
herein that affect the interest rates under the Credit Agreement shall apply to
all Loans outstanding on or after the Amendment Effective Date from and
including the Amendment Effective Date, and (ii) the first date on which accrued
interest on the Loans shall be payable on a monthly basis, as contemplated by
Section 3(a)(iii) hereof, shall be May 31, 2002.

                  SECTION 7. Effect of Amendment. Except as expressly set forth
herein, this Amendment shall not by implication or otherwise limit, impair,
constitute a waiver of, or otherwise affect, the rights and remedies of the
Lenders or the Administrative Agent under the Credit Agreement or any other Loan
Document, and shall not alter, modify, amend or in any way affect any of the
terms, conditions, obligations, covenants or agreements contained in the Credit
Agreement or any other Loan Document, all of which are ratified and affirmed in
all respects and shall continue in full force and effect. Nothing herein shall
be deemed to entitle Holdings or the Borrower to a consent to, or a waiver,
amendment, modification or other change of, any of the terms, conditions,
obligations, covenants or agreements contained in the Credit Agreement or any
other Loan Document in similar or different circumstances. This Amendment shall
apply and be effective only with respect to the provisions of the Credit
Agreement specifically referred to herein. This Amendment shall constitute a
"Loan Document" for all purposes under the Credit Agreement and the other Loan
Documents.

                  SECTION 8. Expenses. The Borrower agrees to pay the reasonable
out-of-pocket costs and expenses incurred by the Administrative Agent in
connection with the preparation of this Amendment.

                  SECTION 9. Counterparts. This Amendment may be executed in any
number of counterparts and by different parties hereto on separate counterparts,
each of which when so executed and delivered shall be deemed an original, but
all of which together shall constitute a single instrument. Delivery of an
executed counterpart of a signature page of this Amendment by facsimile
transmission shall be as effective as delivery of a manually executed
counterpart hereof.

<PAGE>
                                                                              10

                  SECTION 10. Applicable Law. THIS AMENDMENT SHALL BE GOVERNED
BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

                  SECTION 11. Headings. The headings of this Amendment are for
purposes of reference only and shall not limit or otherwise affect the meaning
hereof.

<PAGE>
                                                                              11

                  IN WITNESS WHEREOF, the parties hereto have caused this
Amendment to be duly executed by their duly authorized officers, all as of the
date and year first above written.

                                   NEENAH FOUNDRY COMPANY,

                                     by
                                        ----------------------------------------
                                         Name:
                                         Title:

                                   NFC CASTINGS, INC.,

                                     by
                                        ----------------------------------------
                                         Name:
                                         Title:

                                   JPMORGAN CHASE BANK, individually
                                   and as Administrative Agent and Collateral
                                   Agent,

                                     by
                                        ----------------------------------------
                                         Name:
                                         Title:

<PAGE>
                                                                              12

SIGNATURE PAGE TO AMENDMENT NO. 3, WAIVER AND AGREEMENT DATED AS OF DECEMBER 31,
2001, TO THE NEENAH FOUNDRY COMPANY CREDIT AGREEMENT DATED AS OF APRIL 30, 1997,
AS AMENDED AND RESTATED AS OF SEPTEMBER 12, 1997, APRIL 3, 1998, AND SEPTEMBER
8, 1998, AND AS FURTHER AMENDED AS OF NOVEMBER 18, 1998 AND MARCH 23, 2001

                           Name of Lender:____________________________________

                                   By:________________________________________
                                      Name:
                                      Title:<PAGE>

                                                                  EXECUTION COPY

                                                                    EXHIBIT 10.2

              THIS SECURED PIK NOTE WAS ORIGINALLY ISSUED ON APRIL
                 29, 2002 AND HAS NOT BEEN REGISTERED UNDER THE
                       SECURITIES ACT OF 1933, AS AMENDED.

                             NEENAH FOUNDRY COMPANY
                                SECURED PIK NOTE

April 29, 2002                                                     $9,900,000.00

                  FOR VALUE RECEIVED, the undersigned, NEENAH FOUNDRY COMPANY, a
Wisconsin corporation (the "Company"), hereby promises to pay to the order of
CITICORP VENTURE CAPITAL, LTD., a New York corporation (the "Holder"), on the
date specified herein, the principal amount of NINE MILLION NINE HUNDRED
THOUSAND DOLLARS ($9,900,000.00), to the extent not paid on or prior to the
Maturity Date (such unpaid principal amount at any time being the "Principal
Amount"), together with interest thereon calculated from the date hereof in
accordance with the provisions of this Secured PIK Note (the unpaid amount of
any such accrued interest at any time being the "Interest Amount" and the sum of
the Principal Amount and the Interest Amount at any time being the "Total
Amount").

                  This Secured PIK Note is issued pursuant to a Secured PIK Note
Purchase Agreement, dated as of April 29, 2002, by and among the Company, NFC
Castings, Inc., and the Holder (as amended, restated or modified from time to
time, the "Purchase Agreement"). This Secured PIK Note is the "Secured PIK Note"
referred to in the Purchase Agreement. The Purchase Agreement contains terms
governing the rights of the Holder of this Secured PIK Note and all provisions
of the Purchase Agreement are incorporated herein by reference in full. The
obligations evidenced by this Secured PIK Note are subject to the terms and
conditions of the Intercreditor Agreement. Capitalized terms used and not
otherwise defined herein shall have the meanings assigned to such terms in the
Purchase Agreement.

                  1. PAYMENTS.

                  (a) Scheduled Payment. The Company shall pay the Total Amount
to the Holder on December 31, 2005 (the "Maturity Date").

                  (b) Financing Fee. On the Maturity Date, the Company shall pay
to the Holder a nonrefundable financing fee in the amount of $99,000 plus
accrued and unpaid interest thereon (the "Financing Fee"). The Financing Fee
shall bear interest from the date hereof through the Maturity Date, calculated
in accordance with Section 2 hereof. The Financing Fee (together with all
accrued interest thereon) shall be nonrefundable under all circumstances.

                  (c) Optional Prepayments. Subject to the terms and conditions
of the Intercreditor Agreement and the Senior Credit Agreement, the Company may,
at any time and from time to time, without premium or penalty, prepay all or a
portion of the Total Amount, together with accrued and unpaid interest thereon
(calculated in accordance with Section 2 hereof). A prepayment of less than all
of the Total Amount shall not relieve the Company of its obligation to repay the
Indebtedness evidenced by this Secured PIK Note on the Maturity Date. Amounts of
this Secured PIK Note so prepaid may not be reborrowed.

                  (d) Manner and Time of Payment. All payments by the Company
hereunder and under the Purchase Agreement of principal, interest, fees and
expenses shall be made without defense, set off, or counterclaim in the lawful
money of the United States of America in same day funds and delivered, subject
to the provisions of the Intercreditor Agreement, to the Holder not later than
2:00 P.M.

<PAGE>

(New York time) on the date due at 399 Park Avenue, 14th Floor, New York, New
York, or such other place designated in writing by the Holder and delivered to
the Company, for the account of the Holder. Funds received by the Holder after
such time shall be deemed to have been paid by the Company on the next
succeeding Business Day.

                  (e) Payments on Non-Business Days. Whenever any payment to be
made hereunder shall be stated to be due on a day that is not a Business Day,
the payment shall be made on the next succeeding Business Day and such extension
of time shall be included in the computation of the payment of interest
hereunder.

                  (f) Application of Payments. Any amount paid to the Holder by
the Company in respect of this Secured PIK Note will be applied first, to reduce
the Interest Amount, and second, to reduce the Principal Amount.

                  2. INTEREST.

                  (a) Rate of Interest. Except as provided in Section 2(c)
below, all obligations evidenced by this Secured PIK Note shall bear interest on
the unpaid principal amount thereof from the date made through maturity (whether
by acceleration or otherwise) at a rate equal to 14.0% per annum.

                  (b) Interest Payments. Interest shall be payable with respect
to the obligations evidenced by this Secured PIK Note, in arrears on and to each
Interest Payment Date commencing on the Initial Interest Payment Date, and upon
any prepayment of this Secured PIK Note (to the extent of accrued interest on
the Principal Amount so prepaid), and at maturity of this Secured PIK Note. On
any Interest Payment Date after the date hereof, the Company shall pay the
unpaid accrued interest with respect to the Obligations evidenced by this
Secured PIK Interest Note and due on any such Interest Payment Date in cash,
unless such cash interest payment is prohibited by the terms and conditions of
the Intercreditor Agreement or the Senior Credit Agreement, whereupon the
Company shall make such interest payment by adding such unpaid accrued interest
to the then outstanding Principal Amount.

                  (c) Default Interest. Upon the occurrence and during the
continuance of an Event of Default and to the extent permitted by applicable
law, the Obligations evidenced by this Secured PIK Note shall bear interest at a
rate equal to 16.0% per annum.

                  (d) Computation of Interest. Interest on the Obligations
evidenced by this Secured PIK Note shall be computed on the basis of a 360-day
year. In computing such interest, the date of this Secured PIK Note shall be
included and the date of payment shall be excluded.

                  3. EVENTS OF DEFAULT; REMEDIES. Upon the occurrence and during
the continuance of an Event of Default, subject to the terms of the
Intercreditor Agreement, the Holder shall be entitled to exercise the remedies
set forth in Section 9.1 of the Purchase Agreement.

                  4. AMENDMENT. No amendment, modification, termination or
waiver of any provision of this Secured PIK Note, or consent to any departure by
the Company therefrom, shall be effective without the written consent of the
Holder or if it would conflict with or violate the terms of the Intercreditor
Agreement.

                  5. WAIVER. The Company hereby waives diligence, presentment,
demand, protest and notice of any kind whatsoever, other than as expressly
required by the Purchase Agreement. The nonexercise by the Holder of any of its
rights hereunder in any particular instance shall not constitute a waiver
thereof in that or any subsequent instance.

                                       2
<PAGE>

                  6. SECURITY. Payment of the Obligations evidenced by this
Secured PIK Note are secured pursuant to a Security Agreement dated as of April
29, 2002, among the Company, each subsidiary of the Company listed on Schedule I
thereto (collectively, the "Subsidiary Guarantors"), the Holder and JPMorgan
Chase Bank ("Chase") (as amended, supplemented or otherwise modified from time
to time) and is subject to the terms and conditions of the Intercreditor
Agreement dated as of April 29, 2002, among the Company, NFC Castings, Inc., the
Subsidiary Guarantors, Chase and the Holder (as amended, supplemented or
otherwise modified from time to time, the "Intercreditor Agreement").

                  7. DEFINITIONS. As used herein, the following terms shall have
the following meanings:

                  "Business Day" means any day excluding Saturday, Sunday and
any day that is a legal holiday under the laws of the State of New York or is a
day on which banking institutions located in such state are authorized or
required by law or other governmental action to close.

                  "Initial Interest Payment Date" means June 30, 2002.

                  "Interest Payment Date" means the last day of each Interest
Period.

                  "Interest Period" means, initially, the period commencing on
the Closing Date and ending on the Initial Interest Payment Date, and,
thereafter, each three-month period; provided, that (i) if an Interest Period
would otherwise expire on a day that is not a Business Day, such Interest Period
shall expire on the next succeeding Business Day; and (ii) no Interest Period
shall extend beyond the Maturity Date.

                  "Obligations" means all obligations defined as "Obligations"
in the Guarantee Agreements and the Security Documents.

                  "Total Amount" means the unpaid principal amount of this
Secured PIK Note.

                  8. GOVERNING LAW. THIS SECURED PIK NOTE SHALL BE CONSTRUED IN
ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OF NEW YORK WITHOUT
REFERENCE TO THE CONFLICT OF LAWS PROVISIONS THEREOF.

                                    * * * * *

                                       3
<PAGE>

                  IN WITNESS WHEREOF, the Company has executed and delivered
this Secured PIK Note as of the date first written above.

                                         NEENAH FOUNDRY COMPANY

                                         By:  _________________________________
                                              Name:
                                              Title:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00039-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00039-of-00352.parquet"}]]