Document:

EX-10.3

COLLATERAL SHARING AGREEMENT

This COLLATERAL SHARING AGREEMENT, dated as of April 19, 2006, is among NATIONAL CITY
BANK, in its capacity as the administrative agent under the Credit Agreement referred to below (in
such capacity, together with any successors or assigns, the “Administrative Agent”), J.P. MORGAN
TRUST COMPANY, NATIONAL ASSOCIATION, as Trustee under the Indentures described below (in such
capacity, together with any successors or assigns, the “Trustee”), FERRO CORPORATION, an Ohio
corporation (the “Borrower”), and each other Person listed on the signature pages hereto as an
“Obligor”.

W I T N E S S E T H:

WHEREAS, pursuant to the terms of that certain Credit Agreement, dated as of August
31, 2001 (as amended, supplemented, amended and restated or otherwise modified, from time to time
the, “Credit Agreement”), among the Borrower, the various financial institutions and other Persons
from time to time party thereto (the “Credit Facility Lenders”), Credit Suisse, as Syndication
Agent, and the Administrative Agent, the Borrower, together with certain additional Obligors,
executed and delivered the Credit Facility Pledge Agreement (terms used in the preamble and the
recitals have the definitions set forth in or incorporated by reference in Article I) in
favor of the Administrative Agent whereby the Borrower and the Obligors have granted security
interests in certain personal property to the Administrative Agent;

WHEREAS, pursuant to the terms of the Credit Agreement, it is anticipated that the
Borrower and certain additional Obligors will execute and deliver one or more mortgages in favor of
the Administrative Agent whereby the Borrower and the Obligors will grant Liens upon certain real
property to the Administrative Agent;

WHEREAS, the Borrower and the Trustee are parties to (i) that certain Indenture, dated as of
May 1, 1993, by and between the Borrower and the Trustee (as successor-in-interest to Society
National Bank) and (b) that certain Indenture, dated as of March 25, 1998, by and between the
Borrower and the Trustee (as successor-in-interest to Chase Manhattan Trust Company, National
Association) (each as amended, supplemented, amended and restated or otherwise modified from time
to time, an “Indenture” and, collectively, the “Indentures”);

WHEREAS, Section 1008 of each Indenture requires the Borrower, in connection with its
incurrence of certain Debt secured by a mortgage, pledge, lien, security interest, conditional
sale, title retention agreement or other similar encumbrance on any Principal Domestic
Manufacturing Property of the Borrower or any Domestic Subsidiary, or any shares of stock or Debt
of any Domestic Subsidiary, to grant equal and ratable liens upon and security interests in certain
Common Collateral to the Trustee to secure the Outstanding Securities; and

WHEREAS, in connection with Section 1008 of each Indenture, the Borrower, together with
certain additional Obligors, executed and delivered the Indenture Pledge Agreement in favor of the
Trustee whereby the Borrower and the Obligors have granted security interests in certain personal
property Common Collateral to the Trustee; and

WHEREAS, in connection with Section 1008 of each Indenture, it is anticipated that
the Borrower and certain additional Obligors will grant to the Trustee certain additional liens and
security interests, as applicable, in the Common Collateral in the future; and

WHEREAS, the parties hereto are entering into this Agreement to establish, inter alia, certain
rights, limitations and the relative priorities of the Trustee and the Administrative Agent with
respect to the Common Collateral.

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

ARTICLE I

DEFINITIONS

SECTION 1.1 Agreement to Recitals; Definitions. The parties hereto acknowledge and
agree to each of the Recitals set forth above, which Recitals are hereby incorporated in and made a
part of this Agreement. As used in this Agreement, the following terms shall have the following
meanings (such meanings to be equally applicable to both the singular and the plural form of the
terms indicated):

“Administrative Agent” is defined in the preamble.

“Administrative Agent Standstill Notice” is defined in Section 2.4(b).

“Administrative Agent Standstill Period” is defined in Section 2.4(b).

“Agreement” means this Collateral Sharing Agreement, as amended, supplemented, amended and
restated or otherwise modified from time to time in accordance with the terms hereof.

“Bankruptcy Code” means title 11 of the United States Code (11 U.S.C. §101 et seq.), as in
effect from time to time and any successor statute and shall also mean each other law or structure
of similar application in any jurisdiction in which an Obligor (or its assets) is located.

“Borrower” is defined in the preamble.

“Capital Stock” means, (a) in the case of a corporation, any and all capital or corporate
stock, including shares of preferred or preference stock of such corporation, (b) in the case of an
association or business entity, any and all shares, interests, participations, rights or other
equivalents (however designated) in respect of corporate or capital stock, (c) in the case of a
partnership or limited liability company, any and all partnership or membership interests (whether
general or limited) and (d) any other interest or participation that confers on a person the right
to receive a share of the profits and losses of, or distributions of assets of, the issuing Person.

“Cash Collateral” means any Common Collateral consisting of cash or cash equivalents, any
security entitlement (as defined in the UCC) and any financial assets (as defined in the UCC).

“Claims” means, collectively, the Credit Facility Secured Claims and the Indenture Secured
Claims.

“Collateral Documents” means, collectively, the Credit Facility Collateral Documents and the
Indenture Collateral Documents.

“Common Collateral” means any asset of the Borrower or any other Obligor in which the Borrower
or such other Obligor has granted, or does subsequently grant, a Lien to each of the Trustee and
the Administrative Agent.

“Control Collateral” means any Common Collateral consisting of a certificated security (as
defined in the UCC), investment property (as defined in the UCC), a deposit account (as defined in
the UCC) and any other Common Collateral as to which a Lien is required to be perfected through
possession or control by the secured party.

“Credit Agreement” is defined in the recitals; provided that the term Credit
Agreement shall also include any renewal, extension, refunding, restructuring, replacement or
refinancing thereof (whether with the original administrative agent and lenders or another
administrative agent or agents or other lenders, whether provided under the original Credit
Agreement or any other credit or other agreement or indenture and whether entered into concurrently
with or subsequent to the termination of the prior Credit Agreement) (such document executed in
connection therewith a “Replacement Credit Agreement”).

“Credit Facility Collateral Documents” means the Credit Facility Pledge Agreement and all
other security agreements, mortgages, pledge agreements, collateral access agreements, control
agreements or other documents delivered by any Obligor to the Administrative Agent (or any other
Credit Facility Secured Party) to secure the Credit Facility Secured Claims.

“Credit Facility Event of Default” means an “Event of Default” as defined in the Credit
Agreement.

“Credit Facility Documents” means the Credit Agreement, the Credit Facility Collateral
Documents and the other Credit Documents (as defined in the Credit Agreement).

“Credit Facility Lenders” is defined in the recitals.

“Credit Facility Pledge Agreement” means the Pledge and Security Agreement, dated as of April
19, 2006, made by certain Obligors in favor of the Administrative Agent, as amended, supplemented,
amended and restated or otherwise modified from time to time (and shall include any other Pledge
and Security Agreement executed pursuant to a Replacement Credit Agreement).

“Credit Facility Secured Claims” means (a) all Indebtedness outstanding under one or more of
the Credit Facility Documents and (b) all other Obligations (as defined in the Credit Agreement).
Credit Facility Secured Claims shall include all interest accrued or accruing (or which would,
absent the commencement of an Insolvency or Liquidation Proceeding in respect of any obligor of
such Credit Facility Secured Claims, accrue) after the commencement of an Insolvency or Liquidation
Proceeding in respect of any obligor of such Credit Facility Secured Claims in accordance with and
at the rate specified in the Credit Agreement whether or not the claim for such interest is allowed
as a claim in such Insolvency or Liquidation Proceeding. To the extent any payment with respect to
the Credit Facility Secured Claims (whether by or on behalf of any Obligor, as proceeds of
security, enforcement of any right of setoff or otherwise) is declared to be fraudulent or
preferential in any respect, set aside or required to be paid to a debtor in possession, trustee,
receiver or similar Person, then the Obligations (as defined in the Credit Agreement) or part
thereof originally intended to be satisfied shall be deemed to be reinstated and outstanding as if
such payment had not occurred.

“Credit Facility Secured Parties” means the Administrative Agent and the Credit Facility
Lenders and shall include each other Person on behalf of whom the Administrative Agent holds a Lien
securing the Credit Facility Secured Claims.

“Debt” is defined in the Indentures.

“Discharge of Credit Facility Secured Claims” means payment in full in cash of the Credit
Facility Secured Claims (other than Credit Facility Secured Claims consisting of contingent
indemnification obligations under the Credit Facility Documents), delivery of cash collateral in an
amount not exceeding 100% of the undrawn aggregate amount of all such outstanding letters of credit
or backstop letters of credit in respect thereof in compliance with the terms of the Credit
Agreement, in each case, after or concurrently with termination of all commitments to extend credit
thereunder other than in connection with the execution and delivery of a Replacement Credit
Agreement.

“Discharge of Indenture Secured Claims” means payment in full in cash of the Indenture Secured
Claims (other than Indenture Secured Claims consisting of contingent indemnification obligations
under the Indenture Documents) in compliance with the terms of the applicable Indenture.

“Domestic Subsidiary” is defined in the Indentures.

“Holder” is defined in the Indentures.

“Indebtedness” is defined in the Credit Agreement.

“Indenture” or “Indentures” is defined in the recitals.

“Indenture Collateral Documents” means the Indenture Pledge Agreement and all other security
agreements, mortgages, pledge agreements, collateral access agreements, control agreements or other
documents delivered by any Obligor to the Trustee to secure the Indenture Secured Claims.

“Indenture Documents” means, collectively, the Indentures and the Indenture Collateral
Documents.

“Indenture Event of Default” means an “Event of Default” as defined in the Indentures.

“Indenture Pledge Agreement” means the Pledge and Security Agreement, dated as of April 19,
2006, by certain Obligors, in favor of the Trustee, as amended, supplemented, amended and restated
or otherwise modified from time to time.

“Indenture Secured Claims” means, (i) the principal of (and premium, if any) and interest
(including default interest, if any) on any Outstanding Securities, and (ii) all other obligations
and liabilities owing by the Borrower under the Indentures (including, without limitation,
indemnities, fees and other amounts payable thereunder, including, without limitation, the
obligation of the Borrower to reimburse the Trustee for reasonable compensation, expenses,
disbursements and advances as described in Section 607 of each Indenture), whether primary,
secondary, direct, contingent, fixed or otherwise, in all cases whether now existing, or hereafter
incurred or arising. Indenture Secured Claims shall include all interest accrued or accruing (or
which would, absent the commencement of an Insolvency or Liquidation Proceeding in respect of any
obligor of such Indenture Secured Claims, accrue) after the commencement of an Insolvency or
Liquidation Proceeding in respect of any obligor of such Indenture Secured Claims in accordance
with and at the rate specified in the Indentures whether or not the claim for such interest is
allowed as a claim in such Insolvency or Liquidation Proceeding. To the extent any payment with
respect to the Indenture Secured Claims (whether by or on behalf of any Obligor, as proceeds of
security, enforcement of any right of setoff or otherwise) is declared to be fraudulent or
preferential in any respect, set aside or required to be paid to a debtor in possession, trustee,
receiver or similar Person, then the Indenture Secured Claims or part thereof originally intended
to be satisfied shall be deemed to be reinstated and outstanding as if such payment had not
occurred.

“Insolvency or Liquidation Proceeding” means, with respect to any Person, (a) any voluntary or
involuntary case or proceeding under the Bankruptcy Code with respect to such Person as a debtor,
(b) any other voluntary or involuntary insolvency, reorganization or bankruptcy case or proceeding,
or any receivership, liquidation, reorganization or other similar case or proceeding with respect
to such Person as a debtor or with respect to any substantial part of their respective assets, (c)
any liquidation, dissolution, reorganization or winding up of such Person whether voluntary or
involuntary and whether or not involving insolvency or bankruptcy or (d) any assignment for the
benefit of creditors or any other marshalling of assets and liabilities of such Person.

“Liens” mean any mortgage, pledge, security interest, encumbrance, lien or charge of any kind
(including any agreement to give any of the foregoing, any conditional sale or other title
retention agreement or any lease in the nature thereof).

“Obligors” means, in respect of the Credit Facility Secured Claims, the Borrower and each of
its Subsidiaries party to a Credit Facility Document and, in respect of the Indenture Secured
Claims, the Borrower and each of its Subsidiaries party to an Indenture Document.

“Outstanding Securities” is defined in the Indentures.

“Person” means any individual, partnership, joint venture, firm, corporation, limited
liability company, association, trust or other enterprise or any government or political
subdivision or any agency, department or instrumentality thereof.

“Pledged Stock Collateral” means, collectively, the Capital Stock pledged to the
Administrative Agent under the Credit Facility Pledge Agreement and the Capital Stock pledged to
the Trustee under the Indenture Pledge Agreement.

“Proceeds” means (a) all “proceeds” as defined in the UCC with respect to the Common
Collateral and (b) whatever is recoverable or recovered when Common Collateral is sold, exchanged,
collected or disposed of, whether voluntarily or involuntarily.

“Principal Domestic Manufacturing Property” is defined in the Indentures.

“Remedies Proceeds” is defined in Section 3.6.

“Secured Parties” means, collectively, the Credit Facility Secured Parties and the Trustee.

“Subsidiary” of any person shall mean and include (a) any corporation more than 50% of whose
stock of any class or classes having by the terms thereof ordinary voting power to elect a majority
of the directors of such corporation (irrespective of whether or not at the time stock of any class
or classes of such corporation shall have or might have voting power by reason of the happening of
any contingency) is at the time owned by such person directly or indirectly through Subsidiaries
and (b) any partnership, association, joint venture or other entity in which such person directly
or indirectly through Subsidiaries, has more than a 50% equity interest at the time.

“Trustee” is defined in the preamble.

“Trustee Standstill Notice” is defined in Section 2.4(a).

“Trustee Standstill Period” is defined in Section 2.4(a).

“UCC” means the Uniform Commercial Code, as at the time in effect in any applicable
jurisdiction.

ARTICLE II

LIEN PRIORITIES

SECTION 2.1 Acknowledgment. The Administrative Agent, for and on behalf of itself and
the other Credit Facility Secured Parties, acknowledges and agrees that, (i) concurrently herewith,
the Borrower and certain additional Obligors have granted to the Trustee, for the benefit of itself
and the Holders under the Indentures, Liens upon certain personal property constituting Common
Collateral in which the Administrative Agent has been granted Liens, and the Administrative Agent
hereby consents thereto and (ii) subsequent to the execution of this Agreement, the Borrower and
certain additional Obligors will grant to the Trustee, for the benefit of itself and the Holders
under the Indentures, Liens upon certain additional Common Collateral in which the Administrative
Agent will have been granted Liens, and the Administrative Agent hereby consents thereto.  The
Trustee acknowledges and agrees that, (i) concurrently herewith, the Borrower and certain
additional Obligors have granted to the Administrative Agent, for the benefit of itself and the
other Credit Facility Secured Parties, Liens upon certain personal property constituting Common
Collateral in which the Trustee has been granted Liens, and the Trustee hereby consents thereto and
(ii) subsequent to the execution of this Agreement, the Borrower and certain additional Obligors
will grant to the Administrative Agent, for the benefit of itself and the other Credit Facility
Secured Parties, Liens upon certain additional Common Collateral in which the Trustee will have
been granted Liens, and the Trustee hereby consents thereto. 

SECTION 2.2 Priority. Notwithstanding the date, manner or order of grant, attachment
or perfection of any Liens granted to the Administrative Agent or any other Credit Facility Secured
Party on the Common Collateral or of any Liens granted to the Trustee on the Common Collateral and
notwithstanding any provision of the UCC, or any applicable law, regarding the avoidance or setting
aside of any Lien granted to the Administrative Agent or any other Credit Facility Secured Party in
the Common Collateral or the Credit Facility Documents or the avoidance or setting aside of any
Lien granted to the Trustee in the Common Collateral or the Indenture Documents, or any other
circumstance whatsoever, (i) the Administrative Agent, on behalf of itself and the other Credit
Facility Secured Parties, agrees that any Lien on the Common Collateral securing the Credit
Facility Secured Claims now or hereafter held by the Administrative Agent and the Credit Facility
Secured Parties, regardless of how acquired, whether by grant, statute, operation of law,
subrogation or otherwise, shall be pari passu in priority to any Lien on the Common Collateral
securing the Indenture Secured Claim, and (ii) the Trustee agrees that any Lien on the Common
Collateral securing the Indenture Secured Claims now or hereafter held by the Trustee, regardless
of how acquired, whether by grant, statute, operation of law, subrogation or otherwise, shall be
pari passu in priority to any Lien on the Common Collateral securing the Credit Facility Secured
Claims.

SECTION 2.3 Prohibition on Contesting Liens.

(a) Prior to the Discharge of Credit Facility Secured Claims, the Trustee agrees that it shall
not (and hereby waives any right to) take any action to contest or challenge (or assist or support
any other Person in contesting or challenging), directly or indirectly, whether or not in any
proceeding (including in any Insolvency or Liquidation Proceeding), the validity, priority (as
established by Section 2.2 hereof), enforceability, or perfection of the Liens of the
Administrative Agent in respect of the Common Collateral.  The Trustee agrees that it will not
take any action that would hinder any exercise of remedies undertaken by the Administrative Agent
under the Credit Facility Documents in respect of the Common Collateral, including any public or
private sale, lease, exchange, transfer or other disposition of the Common Collateral, whether by
foreclosure or otherwise (other than as expressly permitted under this Agreement);
provided, the foregoing shall not prohibit the Trustee from asserting its Liens in the
Common Collateral as is necessary to preserve such Liens under applicable law (e.g., filing
an answer setting forth its interest in the Common Collateral as part of any foreclosure
action). The Trustee hereby waives any and all rights it may have as a lien creditor or otherwise
to contest, protest, object to or interfere with the manner in which the Administrative Agent seeks
to enforce the Liens in any portion of the Common Collateral (other than as expressly permitted
under this Agreement), and the parties hereto agree that the terms of this Agreement shall govern
with respect to the Common Collateral, even if any portion of the Liens securing the Credit
Facility Secured Claims are avoided, disallowed, set aside, or otherwise invalidated in any
judicial proceeding or otherwise.

(b) Prior to the Discharge of Indenture Secured Claims, the Administrative Agent, on behalf of
itself and the other Credit Facility Secured Parties, agrees that it and they shall not (and hereby
waives, on behalf of itself and the other Credit Facility Secured Parties, any right to) take any
action to contest or challenge (or assist or support any other Person in contesting or
challenging), directly or indirectly, whether or not in any proceeding (including in any Insolvency
or Liquidation Proceeding), the validity, priority (as established by Section 2.2 hereof),
enforceability, or perfection of the Liens of the Trustee in respect of the Common Collateral.  The
Administrative Agent, on behalf of itself and the other Credit Facility Secured Parties, agrees
that none of the Administrative Agent or any other Credit Facility Secured Party will take any
action that would hinder any exercise of remedies undertaken by the Trustee under the Indenture
Documents in respect of the Common Collateral, including any public or private sale, lease,
exchange, transfer or other disposition of the Common Collateral, whether by foreclosure or
otherwise (other than as expressly permitted under this Agreement); provided, the foregoing
shall not prohibit the Administrative Agent from asserting its Liens in the Common Collateral as is
necessary to preserve such Liens under applicable law (e.g., filing an answer setting forth
its interest in the Common Collateral as part of any foreclosure action).  The Administrative
Agent, on behalf of itself and the other Credit Facility Secured Parties, hereby waives any and all
rights it or the other Credit Facility Secured Parties may have as a lien creditor or otherwise to
contest, protest, object to or interfere with the manner in which the Trustee seeks to enforce the
Liens in any portion of the Common Collateral (other than as expressly permitted under this
Agreement) and the parties hereto agree that the terms of this Agreement shall govern with respect
to the Common Collateral, even if any portion of the Liens securing the Indenture Secured Claims
are avoided, disallowed, set aside or otherwise invalidated in any judicial proceeding or
otherwise.

SECTION 2.4 Standstill Provisions.

(a) Trustee Standstill. If the Administrative Agent shall send a written notice
stating that such notice is a “Trustee Standstill Notice” (a “Trustee Standstill Notice”) to the
Trustee at any time after the occurrence and during the continuation of a Credit Facility Event of
Default, the Trustee agrees that from and after the date of its receipt of any such Trustee
Standstill Notice, the Trustee will not exercise any of its rights or remedies in respect of the
collection on, set off against, marshalling of, or foreclosure on, the Common Collateral under the
Indenture Documents, applicable law or otherwise as a secured creditor other than as expressly
permitted under this Agreement and will not take or receive any Common Collateral or in connection
with the exercise of any such right or remedy (including recoupment or set-off), whether under the
Indenture Documents, applicable law, in an Insolvency or Liquidation Proceeding or otherwise unless
(a) the Administrative Agent has expressly waived or acknowledged the cure of the applicable Credit
Facility Event of Default in writing or the Discharge of Credit Facility Secured Claims shall have
occurred, or (b) 90 days shall have elapsed from the date of the receipt of such Trustee Standstill
Notice.  From and after the earliest to occur of (i) the Trustee’s receipt of such waiver or cure
notice, (ii) the date on which the Discharge of Credit Facility Secured Claims shall have occurred,
or (iii) the elapsing of such 90 day period, the Trustee may commence to exercise any of its rights
and remedies as a secured creditor with respect to the Common Collateral under the Indenture
Documents, applicable law or otherwise (subject to the provisions of this Agreement).  The time
period during which the Trustee is not permitted to exercise rights or remedies under this section
is referred to herein as the “Trustee Standstill Period”.

(b) Administrative Agent Standstill. If the Trustee shall send a written notice
stating that such notice is an “Administrative Agent Standstill Notice” (an “Administrative Agent
Standstill Notice”) to the Administrative Agent at any time after the occurrence and during the
continuation of an Indenture Event of Default, the Administrative Agent, on behalf of itself and
the other Credit Facility Secured Parties, agrees that from and after the date of its receipt of
any such Administrative Agent Standstill Notice, none of the Administrative Agent or any other
Credit Facility Secured Party will exercise any of its rights or remedies in respect of the
collection on, set off against, marshalling of, or foreclosure on, the Common Collateral under the
Credit Facility Documents, applicable law or otherwise as a secured creditor other than as
expressly permitted under this Agreement and will not take or receive any Common Collateral or in
connection with the exercise of any such right or remedy (including recoupment or set-off), whether
under the Credit Facility Documents, applicable law, in an Insolvency or Liquidation Proceeding or
otherwise unless (a) the Trustee has expressly waived or acknowledged the cure of the applicable
Indenture Event of Default in writing or the Discharge of Indenture Secured Claims shall have
occurred, or (b) 90 days shall have elapsed from the date of the receipt of such Administrative
Agent Standstill Notice.  From and after the earliest to occur of (i) the Administrative Agent’s
receipt of such waiver or cure notice, (ii) the date on which the Discharge of Indenture Secured
Claims shall have occurred, or (iii) the elapsing of such 90 day period, any of the Administrative
Agent or any other Credit Facility Secured Party may commence to exercise any of its rights and
remedies as a secured creditor with respect to the Common Collateral under the Credit Facility
Documents, applicable law or otherwise (subject to the provisions of this Agreement).  The time
period during which the Administrative Agent is not permitted to exercise rights or remedies under
this section is referred to herein as the “Administrative Agent Standstill Period”.

(c) Subject to Section 3.1, notwithstanding anything to the contrary in Section
2.4(a) or (b), neither such Section shall be construed to prevent any action taken by
the Administrative Agent or the Trustee, as the case may be, to prepare for or commence marketing
activities for any applicable Common Collateral so long as such preparation does not interfere in
any material respect with the exercise of rights or remedies by the other party under such Section.

ARTICLE III

ENFORCEMENT; APPLICATION OF PROCEEDS

SECTION 3.1 Exercise of Rights and Remedies. So long as this Agreement has not been
terminated pursuant to the provisions hereof, and regardless of whether or not the Credit Facility
Secured Claims or the Indenture Secured Claims, respectively, have been accelerated or any
Insolvency or Liquidation Proceeding or similar event or proceeding has been commenced by or
against any Obligor:

(a) subject to the terms of the Credit Facility Documents and this Agreement, the
Administrative Agent shall have the right to exercise rights and remedies in respect of the Common
Collateral under the Credit Facility Documents, applicable law or otherwise. In exercising such
rights and remedies with respect to such Common Collateral, the Administrative Agent may enforce
the provisions of the Credit Facility Documents and exercise remedies thereunder and under
applicable law (or refrain from enforcing any such rights and exercising any such remedies), all in
such order and in such manner as it may determine in the exercise of its discretion or as otherwise
provided in the Credit Facility Documents. Such exercise and enforcement shall include, without
limitation, the rights of the Administrative Agent sell, lease, license or otherwise dispose of all
or any portion of the Common Collateral by private or public sale or any other means permissible
under applicable law (such sale to be free and clear of the Trustee’s Liens and the Trustee agrees
to execute any and all Lien releases requested by the Administrative Agent in connection
therewith), to incur reasonable expenses in connection with such exercise and enforcement, and to
exercise all the rights and remedies of a secured lender under the UCC and of a secured creditor
under bankruptcy or similar laws of any applicable jurisdiction;

(b) subject to the terms of the Indenture Documents and this Agreement, the Trustee shall have
the right to exercise rights and remedies in respect of the Common Collateral under the Indenture
Documents, applicable law or otherwise. In exercising such rights and remedies with respect to
such Common Collateral, the Trustee may enforce the provisions of the Indenture Documents and
exercise remedies thereunder and under applicable law (or refrain from enforcing any such rights
and exercising any such remedies), all in such order and in such manner as it may determine in the
exercise of its discretion or as otherwise provided in the Indentures. Such exercise and
enforcement shall include, without limitation, the rights of the Trustee to sell, lease, license or
otherwise dispose of all or any portion of the Common Collateral by private or public sale or any
other means permissible under applicable law (such sale to be free and clear of the Administrative
Agent’s Liens and the Administrative Agent agrees to execute any and all Lien releases requested by
the Trustee in connection therewith), to incur reasonable expenses in connection with such exercise
and enforcement, and to exercise all the rights and remedies of a secured lender under the UCC and
of a secured creditor under bankruptcy or similar laws of any applicable jurisdiction; and

(c) any money, property, securities or other direct or indirect distributions of any nature
whatsoever received by the Administrative Agent or any other Credit Facility Secured Party or the
Trustee resulting from the sale, disposition, or other realization upon or other exercise of
remedies in respect of all or any part of the Common Collateral, in each case regardless of whether
such money, property, securities or other distributions are received directly or indirectly during
the pendency of or in connection with any Insolvency or Liquidation Proceeding or otherwise, shall
be applied by the Administrative Agent, such Credit Facility Secured Party or the Trustee, as
applicable, in accordance with Section 3.6. Until so applied, such payment or distribution
shall be held in trust by such party as the property of the Secured Parties, segregated from other
funds and property held by such party.

SECTION 3.2 No Waiver of Rights.  The Trustee on the one hand, and the Administrative
Agent and the other Credit Facility Secured Parties on the other hand, may exercise, and nothing
herein shall constitute a waiver of, any right they may have at law or equity to receive notice of,
or to commence or join with any creditor in commencing any Insolvency or Liquidation Proceeding or
to join or participate in, any action or proceeding or other activity involving the sale or other
disposition of the Common Collateral; provided that exercise of any such right by the
Trustee on the one hand, and the Administrative Agent and the other Credit Facility Secured Parties
on the other hand, shall be subject to all of the terms and conditions of this Agreement.

SECTION 3.3 Rights as an Unsecured Creditor. Notwithstanding anything to the
contrary contained in this Agreement, the Trustee (i) may make such demands or file such claims in
respect of the Indenture Secured Claims as may be necessary to prevent the waiver or bar of such
claims under applicable statutes of limitations or other statutes, court orders or rules of
procedure, (ii) may in any Insolvency or Liquidation Proceeding file a proof of claim or statement
of interest with respect to the Indenture Secured Claims, (iii) may accelerate the Indenture
Secured Claims pursuant to the terms and conditions of the Indenture Documents and this Agreement,
and (iv) shall have all rights and remedies it may have as an unsecured creditor at law or in
equity against any Obligor; provided that (1) the Trustee shall not take any actions
restricted by this Agreement in respect of the Common Collateral until the Discharge of Credit
Facility Secured Claims shall have occurred, and (2) any exercise by the Trustee of its rights and
remedies and any Remedies Proceeds received as result of such actions shall to the extent provided
herein be subject to the Liens of the Administrative Agent and to the provisions of this Agreement.
Notwithstanding anything to the contrary in this Agreement or any control agreement or any bailee
agreement, so long as the Discharge of Credit Facility Secured Claims has not occurred, the Trustee
agrees that during any Trustee Standstill Period it will not issue any instructions to any bank or
securities intermediary regarding the disposition of funds in any deposit account (as defined in
the UCC) of an Obligor or the disposition of financial assets in any securities account (as defined
in the UCC) of an Obligor or the disposition of any Pledged Stock Collateral held by any bailee
without the prior written consent of the Administrative Agent. Each of the Administrative Agent
and any other Credit Facility Secured Party (i) may make such demands or file such claims in
respect of the Credit Facility Secured Claims as may be necessary to prevent the waiver or bar of
such claims under applicable statutes of limitations or other statutes, court orders or rules of
procedure, (ii) may in any Insolvency or Liquidation Proceeding file a proof of claim or statement
of interest with respect to the Credit Facility Secured Claims, (iii) may accelerate the Credit
Facility Secured Claims pursuant to the terms and conditions of the Credit Facility Documents and
this Agreement, and (iv) shall have all rights and remedies it may have as an unsecured creditor at
law or in equity against any Obligor; provided that (1) none of the Administrative Agent
nor any other Credit Facility Secured Party shall take any actions restricted by this Agreement in
respect of the Common Collateral until the Discharge of Indenture Secured Claims shall have
occurred, and (2) any exercise by the Administrative Agent or any other Credit Facility Secured
Party of its rights and remedies and any Remedies Proceeds received as result of such actions shall
to the extent provided herein be subject to the Liens of the Trustee and to the provisions of this
Agreement.  Notwithstanding anything to the contrary in this Agreement or any control agreement or
any bailee agreement, so long as the Discharge of Indenture Secured Claims has not occurred, the
Administrative Agent agrees on behalf of itself and the other Credit Facility Secured Parties that
during any Administrative Agent Standstill Period it will not issue any instructions to any bank or
securities intermediary regarding the disposition of funds in any deposit account (as defined in
the UCC) of an Obligor or the disposition of financial assets in any securities account (as defined
in the UCC) of an Obligor or the disposition of any Pledged Stock Collateral held by any bailee
without the prior written consent of the Trustee.

SECTION 3.4 Control and Cash Collateral.

(a) Each of the Administrative Agent, for and on behalf of itself and each other Credit
Facility Secured Party, and the Trustee, as applicable, agree to hold all Cash Collateral that it
may receive in its (or any bailee acting on its behalf) respective possession, custody or control
as agent for the other solely for the purpose of perfecting the Liens granted to each in such Cash
Collateral subject to the terms and conditions of this Section 3.4. The duties or
responsibilities of the Administrative Agent and the Trustee with respect to Cash Collateral under
this Section 3.4 are and shall be limited solely to holding or maintaining control of the
Cash Collateral for the other for purposes of perfecting the Lien held by the Administrative Agent
or the Trustee, as applicable.  The Administrative Agent is not and shall not be deemed to be a
fiduciary of any kind for the Trustee, the Holders of the Securities under the Indentures or any
other Person.  The Trustee is not and shall not be deemed to be a fiduciary of any kind for the
Administrative Agent, the other Credit Facility Parties or any other Person. Each of the Trustee
and the Administrative Agent agree to exercise reasonable care in the custody and preservation of
any of the Collateral in its possession; provided that each of the Trustee and the
Administrative Agent shall be deemed to have exercised reasonable care in the custody and
preservation of any of the Collateral if it takes such action for that purpose as the other
reasonably requests in writing (subject to the terms of this Agreement), but failure of the Trustee
or the Administrative Agent to comply with any such request at any time shall not in itself be
deemed a failure to exercise reasonable care.

(b) The Administrative Agent and the Trustee further acknowledge and agree that,
notwithstanding anything to the contrary contained in the Indenture Pledge Agreement or the Credit
Facility Pledge Agreement to the contrary, the Administrative Agent (or a third party on its
behalf) shall hold the Control Collateral in its possession as agent and bailee of the Trustee for
purposes of perfecting the Trustee’s Liens in the Control Collateral. The Administrative Agent
further acknowledges that in accordance with Section 9-313(c) of the UCC as in effect from time to
time in New York, this Agreement constitutes an authenticated record pursuant to which the
Administrative Agent acknowledges that it holds possession of the Control Collateral for the
benefit of the Trustee. The Administrative Agent agrees that it shall not relinquish possession of
the Control Collateral except to the extent that such Control Collateral is released in accordance
with the terms of this Agreement or sold or otherwise disposed of in connection with the
Administrative Agent’s exercise of its remedies under the Credit Facility Documents. Neither the
Administrative Agent nor any other Credit Facility Secured Party shall have any obligation
whatsoever to the Trustee to assure that any Control Collateral is genuine or owned by any Obligor
or any other Person. 

SECTION 3.5 Notices of Exercise.  Concurrently with any exercise by the Trustee of
any of its rights and remedies under the Indenture Documents following the occurrence of any
Indenture Event of Default, the Trustee shall give written notice of such exercise to the
Administrative Agent and shall only exercise such rights or remedies under the Indenture Documents
with respect to the Common Collateral consistent with the terms of this Agreement.  Concurrently
with any exercise by the Administrative Agent of any of its rights and remedies under the Credit
Facility Documents following the occurrence of any Credit Facility Event of Default, the
Administrative Agent shall give written notice of such exercise to the Trustee and shall only
exercise such rights or remedies under the Credit Facility Documents with respect to the Common
Collateral in a manner consistent with the terms of this Agreement.

SECTION 3.6 Application of Proceeds. The Administrative Agent and the Trustee hereby
agree that all Common Collateral and all proceeds in respect thereof received by either of them in
connection with the sale of, collection on, recovery from or realization upon such Common
Collateral (such proceeds “Remedies Proceeds”) upon the exercise of any of their secured creditor
rights or remedies under any of the Credit Facility Documents, the Indenture Documents, applicable
law or otherwise, shall be promptly applied as follows:

(i) first, ratably to the payment in full in cash of costs and expenses of (i)
the Administrative Agent (including the fees and expenses of the Administrative Agent’s
counsel) and (ii) the Trustee (including the fees and expenses of the Trustee’s counsel) in
connection with such exercise,

(ii) second, after payment in full in cash of the amounts specified in
clause (i) above, to the Secured Parties for payment of their respective Claims
ratably in proportion to the aggregate amount of their respective Claims, which amounts will
be distributed to each such Secured Party in accordance with the terms of the Credit
Agreement or the Indentures, as applicable, until paid in full in cash, and

(iii) third, after payment in full in cash of the amounts specified in
clauses (i) through (ii), to each Obligor or any other Person lawfully
entitled to receive such surplus.

ARTICLE IV

MISCELLANEOUS

SECTION 4.1 Amendments to Collateral Documents. No Collateral Document may be
amended, supplemented or otherwise modified or entered into by any Secured Party to the extent such
amendment, supplement or modification, or the terms of any new such document, would be inconsistent
with any of the terms of this Agreement or would materially adversely affect the value of the
Common Collateral or the rights and remedies of the other Secured Parties.

SECTION 4.2 No Warranties or Liability. Each Secured Party acknowledges and agrees
that none of the Administrative Agent, the Trustee nor any other Secured Party have made express or
implied representation or warranty, including with respect to the execution, validity, legality,
completeness, collectibility or enforceability of any of the Collateral Documents. The Secured
Parties will be entitled to administer, manage and supervise their respective agreements with, and
loans and extensions of credit to, the Borrower in accordance with law and as they may otherwise,
in their sole discretion, deem appropriate, and each Secured Party may administer and manage their
agreements, loans and extensions of credit without regard to any rights or interests that each
other Secured Party has in the Common Collateral or otherwise, except as otherwise provided in this
Agreement. Subject to the terms of this Agreement, no Secured Party shall have any duty to any
other Secured Party to act or refrain from acting in a manner which allows, or results in, the
occurrence or continuance of an Event of Default or default under any agreements with the Borrower,
regardless of any knowledge thereof which such Secured Party may have or be charged with.

SECTION 4.3 Amendments; Waivers. No amendment, modification or waiver of any of the
provisions of this Agreement shall be deemed to be made unless the same shall be in writing signed
by each of the Administrative Agent, the Trustee and the Borrower and each waiver, if any, shall be
a waiver only with respect to the specific instance involved and shall in no way impair the rights
of the parties making such waiver or the obligations of the other parties to such party in any
other respect or at any other time.

SECTION 4.4 Forum Selection and Consent to Jurisdiction. ANY LITIGATION BASED
HEREON, OR ARISING OUT OF, UNDER, OR IN CONNECTION WITH, THIS AGREEMENT OR ANY OTHER COLLATERAL
DOCUMENT, OR ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENTS (WHETHER ORAL OR WRITTEN) OR
ACTIONS OF ANY PARTY HERETO RELATING THERETO SHALL BE BROUGHT AND MAINTAINED EXCLUSIVELY (TO THE
EXTENT PERMITTED UNDER APPLICABLE LAW) IN THE COURTS OF THE STATE OF NEW YORK, NEW YORK COUNTY, OR
IN THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK; PROVIDED THAT
ANY SUIT SEEKING ENFORCEMENT AGAINST ANY COMMON COLLATERAL OR OTHER PROPERTY MAY BE BROUGHT, AT THE
OPTION OF THE ADMINISTRATIVE AGENT THE TRUSTEE, OR SUCH OTHER SECURED PARTY, AS APPLICABLE, IN THE
COURTS OF ANY JURISDICTION WHERE SUCH COLLATERAL OR OTHER PROPERTY MAY BE FOUND. EACH OF THE
PARTIES HERETO HEREBY EXPRESSLY AND IRREVOCABLY SUBMITS TO THE JURISDICTION OF THE COURTS OF THE
STATE OF NEW YORK, NEW YORK COUNTY, AND OF THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN
DISTRICT OF NEW YORK FOR THE PURPOSE OF ANY SUCH LITIGATION AS SET FORTH ABOVE AND IRREVOCABLY
AGREES TO BE BOUND BY ANY JUDGMENT RENDERED THEREBY IN CONNECTION WITH SUCH LITIGATION. EACH OF
THE PARTIES HERETO IRREVOCABLY CONSENTS TO THE SERVICE OF PROCESS BY REGISTERED MAIL, POSTAGE
PREPAID, OR BY PERSONAL SERVICE WITHIN OR WITHOUT THE STATE OF NEW YORK. EACH OF THE PARTIES
HERETO HEREBY EXPRESSLY AND IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY
OBJECTION WHICH IT MAY HAVE OR HEREAFTER MAY HAVE TO THE LAYING OF VENUE OF ANY SUCH LITIGATION
BROUGHT IN ANY SUCH COURT REFERRED TO ABOVE AND ANY CLAIM THAT ANY SUCH LITIGATION HAS BEEN BROUGHT
IN AN INCONVENIENT FORUM.

SECTION 4.5 Waiver of Jury Trial. THE PARTIES HERETO HEREBY KNOWINGLY, VOLUNTARILY
AND INTENTIONALLY WAIVE ANY RIGHTS THEY MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION
BASED HEREON, OR ARISING OUT OF, UNDER OR IN CONNECTION WITH, THIS AGREEMENT OR ANY OTHER
COLLATERAL DOCUMENT, OR ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENTS (WHETHER ORAL OR
WRITTEN) OR ACTIONS OF SUCH PARTIES RELATING THERETO. EACH OF THE PARTIES HERETO ACKNOWLEDGES AND
AGREES THAT IT HAS RECEIVED FULL AND SUFFICIENT CONSIDERATION FOR THIS PROVISION (AND EACH OTHER
PROVISION OF EACH OTHER COLLATERAL DOCUMENT TO WHICH IT IS A PARTY) AND THAT THIS PROVISION IS A
MATERIAL INDUCEMENT FOR THE PARTIES ENTERING INTO THIS AGREEMENT AND EACH SUCH OTHER COLLATERAL
DOCUMENT.

SECTION 4.6 Notices. All notices permitted or required under this Agreement may be
sent to the Administrative Agent and the Trustee at its address set forth below. Unless otherwise
specifically provided herein, any notice or other communication herein required or permitted to be
given shall be in writing and may be personally served, telecopied, electronically mailed or sent
by courier service or U.S. mail and shall be deemed to have been given when delivered in person or
by courier service, upon receipt of a telecopy or electronic mail or four Business Days after
deposit in the U.S. mail (registered or certified, with postage prepaid and properly addressed).
For the purposes hereof, the addresses of the parties hereto shall be as set forth below or, as to
each party, at such other address as may be designated by such party in a written notice to all of
the other parties.

	 	 	 	 	 
	 
	 	National City Bank

	 
	 	629 Euclid Avenue
	If to the
	 	Cleveland, Ohio 44114

	Administrative
	 	Facsimile:

	Agent:
	 	Attention: Diego Tobon

	With copies to:
	 	Mayer, Brown, Rowe & Maw LLP

	 
	 	214 N. Tryon Street, Suite 3800
	 
	 	Charlotte, North Carolina 28202

	 
	 	Facsimile:  (704) 377-2033

	 
	 	Attention:  Ron D. Franklin

	If to the Trustee:
	 	J.P. Morgan Trust Company, National Association

	 
	 	One Oxford Centre

	 
	 	301 Grant Street, Suite 1100
	 
	 	Pittsburgh, PA 15219

	 
	 	Facsimile:  (412) 291-2070

	 
	 	Attention: Ms. Bridget M. Schessler

	With copies to:
	 	Schottenstein, Zox & Dunn Co., L.P.A.

	 
	 	P.O. Box 165020

	 
	 	Columbus, Ohio 43216-5020

	 
	 	Facsimile:  614-462-5135

	 
	 	Attn: Victoria E. Powers, Esq. and Eric M. Stoller, Esq.

	If to the Borrower:
	 	Ferro Corporation

	 
	 	1000 Lakeside Avenue
	 
	 	Cleveland, Ohio 44114

	 
	 	Attn:  General Counsel

	 
	 	Fax:  216-875-7275

	With copies to:
	 	Baker & Hostetler LLP

	 
	 	1900 E. 9th St.
	 
	 	Suite 3200

	 
	 	Cleveland, Ohio 44114

	 
	 	Facsimile: 216-696-0740

	 
	 	Attn: M.H. (Bart) Sauer III, Esq.

SECTION 4.7 Further Assurances. Each of the Administrative Agent and the Trustee
agrees that it shall take such further action and shall execute and deliver to the other party such
additional documents and instruments (in recordable form, if requested) as such other party may
reasonably request to effectuate the terms of and the lien priorities contemplated by this
Agreement.

SECTION 4.8 Governing Law. THIS AGREEMENT SHALL BE DEEMED TO BE A CONTRACT MADE
UNDER AND GOVERNED BY THE INTERNAL LAWS OF THE STATE OF NEW YORK (INCLUDING FOR SUCH PURPOSES
SECTION 5-1401 AND 5-1402 OF THE GENERAL OBLIGATIONS LAW OF THE STATE OF NEW YORK).

SECTION 4.9  Continuing Agreement; Binding on Successors and Assigns; No Third Party
Beneficiaries. This Agreement is a continuing agreement and shall (a) remain in full force and
effect until the earlier of (i) Discharge of Credit Facility Secured Claims shall have occurred and
(ii) the Discharge of Indenture Secured Claims shall have occurred, (b) be binding upon the Secured
Parties and their successors and assigns, and (c) inure to the benefit of and be enforceable by the
Secured Parties and their respective successors, transferees and assigns.  Without limiting the
generality of the foregoing clause (c), each Secured Party may assign or otherwise transfer
all or any portion of its Claims to any other Person in the manner contemplated in the Credit
Facility Documents and the Indenture Documents, and such other Person shall thereupon become vested
with all the rights and obligations in respect thereof granted to the applicable Secured Party,
herein or otherwise. No other Person, shall have or be entitled to assert rights or benefits
hereunder.

SECTION 4.10 Section Titles; Time Periods. 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 this Agreement.

SECTION 4.11 Counterparts. This Agreement may be executed in one or more
counterparts, each of which shall be an original and all of which shall together constitute one and
the same document. Delivery of an executed counterpart of a signature page to this Agreement by
facsimile shall be effective as delivery of a manually executed counterpart of this Agreement.

SECTION 4.12 Authorization. By its signature, each Person executing this Agreement
on behalf of a party hereto represents and warrants to the other parties hereto that it is duly
authorized to execute this Agreement.

SECTION 4.13 Effectiveness. This Agreement shall become effective when executed and
delivered by the parties listed below. This Agreement shall be effective both before and after the
commencement of any Insolvency or Liquidation Proceeding.

SECTION 4.14 Trustee Acting for Benefit of Holders; Administrative Agent Acting for
Benefit of Credit Facility Secured Parties.

(a) Each of the Obligors and the Administrative Agent, on its own behalf and on behalf of the
Credit Facility Secured Parties, acknowledge and agree that the Trustee is executing this Agreement
not in its individual capacity, but solely in its capacity as Trustee under the Indentures. Each
of the parties agree that in so acting, the Trustee shall have all of the protections afforded to
it under the Indentures and related documents, including, without limitation, its rights to
indemnification thereunder. The foregoing shall not be deemed or construed to grant any additional
consent or approval rights or to modify any existing consent or approval rights (if any) of any
Holder of the Outstanding Securities under the Indentures.

(b) Each of the Obligors and the Trustee acknowledge and agree that the Administrative Agent
is executing this Agreement not in its individual capacity, but solely in its capacity as
Administrative Agent under the Credit Agreement. Each of the parties agree that in so acting, the
Administrative Agent shall have all of the protections afforded to it under the Credit Agreement
and related documents, including, without limitation, its rights to indemnification thereunder.
The foregoing shall not be deemed or construed to grant any additional consent or approval rights
or to modify any existing consent or approval rights (if any) of any Credit Facility Lender under
the Credit Agreement.

SECTION 1.1

1

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

Administrative Agent:

NATIONAL CITY BANK,

By:      

Name:

Title:

By:      

Name:

Title:

Trustee:

J.P. MORGAN TRUST COMPANY, NATIONAL ASSOCIATION

By:      

Name:

Title:

Acknowledged and Agreed:

Obligors:

FERRO CORPORATION

By:      

Name: Thomas M. Gannon

Title: Chief Financial Officer

FERRO ELECTRONIC MATERIALS INC.

	 	 	 	By:
     

Name: Rhonda S. Ferguson

Title: Assistant Secretary

FERRO PFANSTIEHL LABORATORIES, INC.

	 	 	 	By:
     

Name: Rhonda S. Ferguson

Title: Assistant Secretary

FERRO COLOR & GLASS CORPORATION

	 	 	 	By:
     

Name: Rhonda S. Ferguson

Title: Secretary

2EX-10.4

[EXECUTION COPY]

FIFTH AMENDMENT AND WAIVER TO CREDIT AGREEMENT

THIS FIFTH AMENDMENT AND WAIVER TO CREDIT AGREEMENT, dated as of April 19, 2006 (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 (formerly 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.

“Fifth Amendment Effective Date” is defined in Article IV.

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 Fifth 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 by inserting the following definitions in the proper alphabetical sequence:

“Ferro Electronic” means Ferro Electronic Materials Inc., a Delaware
corporation.

“SPV” means Ferro Finance Corporation, an Ohio corporation and any
other Person that is a Subsidiary of the Borrower that is a special purpose entity,
variable interest entity or other bankruptcy remote entity created for the purpose
of facilitating a Permitted Receivables Program.

SECTION 2.2. Amendment to Section 8. Section 8 of the Existing Credit Agreement is
hereby amended as follows:

SECTION 2.2.1. Amendment to Section 8.11. Section 8.11 of the Existing Credit
Agreement is hereby amended by adding a new clause (c) at the end of clause (b) thereof that reads
as follows:

(c) Notwithstanding the foregoing provisions of this section 8.11, no SPV
shall be required, under any circumstances, to join the Subsidiary Guaranty.

SECTION 2.2.2. Amendment to Section 8.14. Section 8.14 of the Existing Credit
Agreement is hereby amended by adding a new sentence at the end of such Section that reads as
follows:

In furtherance thereof, the Borrower hereby agrees that (i) it will cause the Administrative
Agent to have a perfected security interest in any deposit account owned by it or any
Domestic Subsidiary that is a Material Subsidiary (other than a SPV) in which such Person
has deposited in excess of $1,000,000 and (ii) it will not permit any Domestic Subsidiary
that is not a Material Subsidiary (other than a SPV) to maintain any deposit accounts in
which an amount in excess of $1,000,000 is deposited.

SECTION 2.3. Amendments to Section 9. Section 9 of the Existing Credit Agreement is
hereby amended as follows:

SECTION 2.3.1. Amendment to Section 9.2. Section 9.2 of the Existing Credit Agreement
is hereby amended as follows:

(a) Section 9.2(a)(iv) of the Existing Credit Agreement is hereby amended in its entirety
to read as follows:

(iv) the making of any Asset Sale by (i) the Borrower to any Wholly-Owned
Subsidiary or (ii) Ferro Electronic to any SPV pursuant to the Permitted Receivables
Programs.

(b) Section 9.2(a)(vi) of the Existing Credit Agreement is hereby amended by adding the
parenthetical “(unless it is an SPV)” after the phrase “the purchasing Subsidiary must”.

SECTION 2.3.2. Amendments to Section 9.2(b). Section 9.2(b) of the Existing Credit
Agreement is hereby amended by:

(a) inserting the phrase “or to a SPV” after the phrase “who is not a Subsidiary of the
Borrower”; and

(b) deleting the words “Default or” set forth in subclause (ii) thereof.

SECTION 2.3.3. Amendment to Section 9.12. The last sentence of Section 9.12 of the
Existing Credit Agreement is hereby amended and restated as follows:

The foregoing prohibitions shall not apply to (i) restrictions contained in any
Credit Document or (ii) restrictions contained, in the case of clause (a),
in any agreement governing any Indebtedness permitted by section 9.5 as to the
assets financed with the proceeds of such Indebtedness and (iii) any SPV (including
any agreements entered into prior to the date hereof).

ARTICLE III

LIMITED WAIVER TO CREDIT AGREEMENT

SECTION 3.1. Collateral Waivers. Effective on (and subject to the occurrence of) the
Fifth Amendment Effective Date, notwithstanding the requirements of Section 8.14 of the Existing
Credit Agreement, the parties hereto hereby agree that on or prior to June 30, 2006, the Borrower
will, and will cause each such Material Subsidiary to take all such actions as requested by the
Administrative Agent to ensure that the Administrative Agent (for the benefit of the Lenders) has a
first priority perfected Lien (subject to Permitted Liens) on and security interest in all of the
real property assets of the Borrower and its Material Subsidiaries located in the United States and
to deliver title insurance and surveys satisfactory to the Administrative Agent and legal opinions
addressed to all Lenders, the obligees of the Additional Secured Obligations and the Administrative
Agent, in form and substance and from counsel, reasonably acceptable to the Administrative Agent,
relating to the actions described in this Article. Additionally, the parties hereto hereby agree
that notwithstanding the requirements of Section 8.14 of the Existing Credit Agreement, neither the
Borrower nor any Material Subsidiary shall have any obligation to (i) perfect security interests in
its deposit accounts (other than those maintained with the Administrative Agent or as required by
the last sentence of Section 8.14 (after giving effect to this Amendment)) or (ii) take any action
under any foreign law to create an enforceable security interest in the Capital Stock of any
Foreign Subsidiary pledged as collateral to the Administrative Agent for the benefit of the
Lenders.

SECTION 3.2. Financial Delivery Requirements. Effective on (and subject to the
occurrence of) the Fifth Amendment Effective Date, notwithstanding anything set forth in the Waiver
Letter, dated as of March 28, 2006, among the Borrower and certain of the Lenders or any other Loan
Document, the Borrower hereby agrees that it will, no later than June 29, 2006, comply with clauses
(a) and (c) of Section 8.1 of the Existing Credit Agreement requiring the Borrower to deliver
financial statements with respect to the fiscal year ending December 31, 2005, together with the
related compliance certificate and other required documents. In the event of a breach of this
covenant, the Borrower hereby agrees to waive the grace period set forth in clause (d) of Section
10.1 of the Credit Agreement.

ARTICLE IV

CONDITIONS TO EFFECTIVENESS

This Amendment and the amendments contained herein shall become effective on the date (the
“Fifth 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 each Lender.

SECTION 4.2. 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 4.3. 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 Fifth 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) and except to the extent waived
hereby or to the extent previously waived in writing by the Lenders.

1

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

FERRO CORPORATION

By:     

Title:

CREDIT SUISSE,

as a Lender

By:     

Title:

By:     

Title:

NATIONAL CITY BANK,

as a Lender

By:     

Title:

     

[INSERT NAME OF LENDER],

as a Lender

By:                                        
    

Title:

2

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00102-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00102-of-00352.parquet"}]]