Document:

Sharing Agreement, dated as of January 11, 2006

 Exhibit 4.1(iii) 
  
 SHARING AGREEMENT 
  
 THIS SHARING AGREEMENT, dated as of January 11, 2006, is among (i) Bank of America, N.A., as agent for the Lenders (as defined below)
under the Credit Agreement referred to below, (ii) the holders of the 1999 Notes issued pursuant to the 1999 Note Agreement (as defined below) listed on the signature pages hereof (together with their respective successors and assigns, the
“1999 Noteholders”), (iii) the holders of the 2000 Notes issued pursuant to the 2000 Note Agreement (as defined below) listed on the signature pages hereof (together with their respective successors and assigns, the
“2000 Noteholders”) and (iv) the holders from time to time (together with their respective successors and assigns, the “Parity Debtholders”) of an Additional Obligor’s (as defined below) indebtedness under
one or more credit, loan or note agreements, indentures or other financing instruments with an Additional Obligor and such Parity Debtholders (or a trustee or agent or similar Person acting for such Parity Debtholders) (as such agreements,
indentures or instruments shall from time to time be amended and in effect being herein called the “Parity Debt Agreements”), which Parity Debtholders shall have become parties hereto in the manner provided in Section 5.4
hereof. Capitalized terms not otherwise defined herein shall have the meaning set forth in Section 2.1 hereof. 
  

	1.	PRELIMINARY STATEMENT 

  
 1.1. The 1999 Noteholders have each entered into a Note Agreement, dated as of November 12, 1999, with 3031786 Nova Scotia Company
(“3031786”) as amended by (i) that certain Amendment No. 1 dated as of February 5, 2003 pursuant to which the 1999 Noteholders purchased from 3031786 7.66% Senior Notes due November 12, 2007, in the aggregate
principal amount of its U.S.$24,500,000 (the “7.66% Notes”) and its 7.80% Senior Notes due November 12, 2010, in the aggregate principal amount of U.S.$45,500,000 (the “7.80% Notes” and together with the 7.66%
Notes, collectively, the “1999 Notes”), (ii) that certain Assumption and Amendment Agreement, dated as of August 26, 2005, whereby Barnes Group Inc. (the “Company”) assumed the obligations of 30301786
under said Note Agreement and the 1999 Notes, and (iii) that certain Amendment No. 3 dated as of the date hereof among the 1999 Noteholders and the Company (said Note Agreement, as so amended, and as it may hereafter be amended, modified,
supplemented or restated from time to time, the “1999 Note Agreement”); 
  
 1.2. The Lenders and the Agent have entered into the Second Amended and Restated Revolving Credit Agreement, dated as of January 11, 2006 (and as it may hereafter be amended, restated, modified or
otherwise supplemented from time to time, the “Credit Agreement”), with the Company and Barnes Group Switzerland GmbH (“Barnes Switzerland”, together with the Company and each Additional Obligor, collectively, the
“Obligors”), and other parties thereto pursuant to which the Lenders are making and providing, and may continue to make and provide, revolving loans and other financial accommodations to the Obligors; 
  
 1.3. The 2000 Noteholders have each entered into a Note
Agreement, dated as of November 21, 2000 (as amended by Amendment No. 1 dated February 21, 2002, Amendment No. 2 dated as of February 5, 2003 and Amendment No. 3 dated the date hereof, and as it may be amended,
modified, supplemented or restated from time to time, the “2000 Note Agreement”), 

 
with the Company pursuant to which the 2000 Noteholders have purchased from the Company its 8.59% Senior Notes due November 21, 2008, in the aggregate
principal amount of $60,000,000 (the “2000 Notes”); 
  
 1.4. The parties hereto wish to define their rights and obligations with respect to each other such that, after a Notice of Election to Share has been sent and so long as such notice remains in effect, any payments by a
Obligor of the Company received by any Creditor on account of the Noteholder Obligations, the Loan Obligations or any Parity Debt Agreement Obligations shall be shared among all Creditors equally and ratably in accordance with their respective
Sharing Percentages, all as set forth in this Agreement. 
  

	2.	INTERPRETATION OF THIS AGREEMENT 

  

	 	2.1.	Defined Terms. 

  
 As used in this Agreement, capitalized terms have the respective meanings specified below or set forth in the section of this Agreement
referred to immediately following such term (such definitions, unless otherwise expressly provided, to be equally applicable to both the singular and plural forms of the terms defined): 
  
 Additional Obligor – means a Foreign Subsidiary of the Company (i) designated by the
Company as an “Additional Obligor”, (ii) all of whose lenders have become a party to this Agreement in accordance with Section 5.4 of this Agreement and (iii) the Company has entered into a guaranty of such Foreign
Subsidiary’s debt owing to such lenders. 
  
 Agent – has the meaning given to “Administrative Agent” as set forth in the Credit Agreement. 
  
 Agreement, this – means this Sharing Agreement, as it may be amended, modified, supplemented or restated from time to
time. 
  
 Barnes Switzerland –
has the meaning set forth in Section 1.2 of this Agreement. 
  
 Commitment – has the meaning set forth in the Credit Agreement. 
  
 Company – has the meaning set forth in Section 1.1 of this Agreement. 
  
 Company Loan Documents – means, as
applicable, the 1999 Note Agreement, the 2000 Note Agreement, the Loan Documents and any Parity Debt Agreements. 
  
 Credit Agreement – has the meaning set forth in Section 1.2 of this Agreement. 
  
 Creditor Joinder Agreement – has the
meaning set forth in Section 5.4(a) of this Agreement. 
  
 Creditors – means, collectively, the Lenders, the Noteholders and the Parity Debtholders. 
  

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 Distribution Agent – has the meaning set forth in Section 3.3(a)
of this Agreement. 
  
 Event of
Default – means an “Event of Default,” as defined in any of the 1999 Note Agreement, the Credit Agreement, the 2000 Note Agreement or any Parity Debt Agreement, as the case may be. 
  
 Foreign Subsidiaries – means any
Subsidiary organized under the laws of a jurisdiction other than the United States of America or one its states or the District of Columbia. 
  
 Issuing Bank – has the meaning set forth in the Credit Agreement. 
  
 Lenders – has the meaning set forth in
the Credit Agreement. 
  
 Letter of
Credit – has the meaning set forth in the Credit Agreement. 
  
 Letter of Credit Obligations – has the meaning set forth in the Credit Agreement. 
  
 Loan Documents – means the “Loan Documents”, as defined in the Credit Agreement. 
  
 Loan Obligations – means, collectively,
without duplication (a) all amounts owing by the Company and its Subsidiaries to the Lenders (including the Issuing Bank) and the Agent, pursuant to the terms of the Credit Agreement and the other Loan Documents in respect of principal,
interest, reimbursement obligations, fees (including facility and agent fees) and expenses (including breakage costs) plus (b) the aggregate undrawn amount of all unexpired Letters of Credit. 
  
 Net Lender Exposure – means in connection
with any Sharing Payment by the Lenders with respect to the Clawback Period, the difference, if any, of (i) the outstanding Loan Obligations on the first day of the Clawback Period and (ii) the outstanding Loan Obligations on the date the
Notice of Election to Share is received by the Creditors. 
  
 1999 Noteholders – has the meaning set forth in the first paragraph of this Agreement. 
  
 1999 Note Agreement – has the meaning set forth in Section 1.1 of this Agreement. 
  
 1999 Notes – has the meaning set forth in
Section 1.1 of this Agreement. 
  
 Noteholder Obligations – means, collectively, without duplication, all amounts owing by the Company and its Subsidiaries to (a) the 1999 Noteholders, pursuant to the terms of the 1999 Note Agreement and the other
documents, agreements and instruments executed in connection therewith (including any related notes), in respect of principal, interest, Make-Whole Price (as such term is defined in the 1999 Note Agreement), fees and expenses and (b) the 2000
Noteholders, pursuant to the terms of the 2000 Note 

  

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Agreement and the other documents, agreements and instruments executed in connection therewith (including any related notes), in respect of principal,
interest, Make-Whole Price (as each such term is defined in the 2000 Note Agreement), fees and expenses. 
  
 Noteholders – means, collectively, the 1999 Noteholders and the 2000 Noteholders. 
  
 Notice of Election to Share – a Notice in
substantially the form of Exhibit A attached hereto, executed and delivered by the Requisite 1999 Noteholders, the Requisite 2000 Noteholders, the Agent (on behalf of the Requisite Lenders) or the Requisite Parity Debtholders, as the case may
be, pursuant to Section 3.1 hereof, which Notice shall invoke the sharing provisions provided for herein. 
  
 Notice of Shared Payment – means a written notification given by or on behalf of any Creditor stating that such
Creditor has received a Shared Payment. 
  
 Obligations – means, collectively, the Loan Obligations, the Noteholder Obligations and the Parity Debt Agreement Obligations. 
  
 Obligors – has the meaning set forth in Section 1.2 of this Agreement. 
  
 Original Lenders – has the meaning set
forth in the first paragraph of this Agreement. 
  
 Parity Debt Agreements – has the meaning set forth in the first paragraph of this Agreement. 
  
 Parity Debtholders – has the meaning set forth in the first paragraph of this Agreement. 
  
 Parity Debt Agreement Obligations – means
as to any particular Parity Debt Agreement, all payment obligations of the Company and all its Subsidiaries to the Parity Debtholders under such Parity Debt Agreement and the documents, agreements and/or instruments executed in connection therewith
in respect of principal, interest, reimbursement obligations, premiums, breakage, make-whole payments, fees and expenses with respect to such Parity Debt Agreement Obligations. 
  
 Person – means an individual, partnership, corporation (including a business trust),
limited liability company or partnership, joint stock company, trust, unincorporated association, joint venture, governmental agency or other authority. 
  
 Receiving Creditor – has the meaning set forth in Section 3.2 of this Agreement. 
  
 Requisite Creditors – means the Requisite
1999 Noteholders, the Requisite Lenders, the Requisite 2000 Noteholders and, so long as Parity Debtholders hold Obligations aggregating at least 33-1/3% of all Obligations outstanding at such time, the Requisite Parity Debtholders under each Parity
Debt Agreement. 
  

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 Requisite Lenders – means, at any time, those Lenders which are then
in compliance with their obligations under the Credit Agreement holding (a) 51% of the Commitments of such Lenders or (b) in the event the Commitments shall have expired or been terminated, 51% of the then outstanding Loan Obligations of
such Lenders. 
  
 Requisite 1999
Noteholders – means the holder or holders of at least 51% of the aggregate principal amount of the Noteholder Obligations owing to the 1999 Noteholders from time to time outstanding, exclusive of Noteholder Obligations owing to the 1999
Noteholders then owned by any one or more of the Obligors, any Subsidiary of any Obligor or any affiliate of any Obligor (including, without limitation, all Subsidiaries that are not Obligors). 
  
 Requisite Parity Debtholders – means the
holder or holders of at least the minimum percentage of the aggregate principal amount of the Parity Debt Agreement Obligations outstanding under any Parity Debt Agreement necessary to permit such holders to cause such principal to become due and
payable prior to its scheduled maturity date, exclusive of any such Parity Debtholder Agreement Obligations then owned by any one or more of the Obligors, any Subsidiary of any Obligor or any affiliate of any Obligor. 
  
 Requisite 2000 Noteholders – means the
holder or holders of at least 51% of the aggregate principal amount of the Noteholder Obligations owing to the 2000 Noteholders from time to time outstanding, exclusive of Noteholder Obligations owing to the 2000 Noteholders then owned by any one or
more of the Obligors, any Subsidiary of any Obligor or any affiliate of any Obligor (including, without limitation, all Subsidiaries that are not Obligors). 
  
 Reserve Account – has the meaning set forth in Section 3.2(a) of this Agreement. 
  
 Shared Payment – has the meaning set
forth in Section 3.2(a) of this Agreement. 
  
 Sharing Percentage – means, with respect to any Creditor, the percentage equal to (a) the sum of (i) the amount of the then outstanding Obligations owed to such Creditor plus (ii) with respect to any
Lender, its pro rata share of the Letter of Credit Obligations determined in accordance with the Credit Agreement divided by (b) the sum of (i) the amount of the then outstanding Obligations owed to all Creditors plus
(ii) the aggregate amount of the Letter of Credit Obligations. In determination of the Sharing Percentage any amounts not denominated in US Dollars will be converted to the US Dollar Equivalent thereof. With respect to any Shared Payment
received during the Clawback Period each Creditor’s Sharing Percentage shall be determined as of the first day of the Clawback Period without giving effect to any payments received during such Clawback Period. With respect to any Shared Payment
received after the Clawback Period, each Creditor’s Sharing Percentage shall be determined as of the first day of the Event of Default after giving effect to any Shared Payments received during the Clawback Period. 
  
 Subsidiary – means, as to any Person, a
corporation, partnership or other entity of which shares of stock or other ownership interests having ordinary voting power (other 

  

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than stock or such other ownership interests having such power only by reason of the happening of a contingency) to elect a majority of the board of
directors or other managers of such corporation, partnership or other entity are at the time owned, or the management of which is otherwise controlled, directly or indirectly through one or more intermediaries, or both, by such Person. Unless
otherwise qualified, all references to a “Subsidiary” or to “Subsidiaries” in this Agreement shall refer to a Subsidiary or Subsidiaries of the Company. 
  
 Total Commitment – has the meaning set forth in the Credit Agreement. 
  
 2000 Noteholders – has the meaning set
forth in the first paragraph of this Agreement. 
  
 2000 Note Agreement – has the meaning set forth in Section 1.3 of this Agreement. 
  
 2000 Notes – has the meaning set forth in Section 1.3 of this Agreement. 
  
 U.S. Dollar Equivalent – means, at
any time of determination, with regard to any amount designated in a currency other than U.S Dollars, the equivalent amount in U.S. Dollars determined using the Specified Exchange Rate as of the business day immediately prior to such date of
determination. For purposes hereof, “Specified Exchange Rate” means the rate at which such other currency may be exchanged into U.S. Dollars as set forth at 10:00 a.m., New York City time on the applicable date (for spot delivery) on the
applicable Bloomberg Key Cross Currency Rates Page FXC (or any successor thereto); in the event that such rate does not appear on such page, the Specified Exchange Rate shall be determined by reference to such other nationally recognized, publicly
available service for displaying exchange rates selected by the Requisite 1999 Holders, the Requisite 2000 Holders and the Agent for such purposes. 
  

	 	2.2.	Certain Other Terms. 

  
 The words “hereof,” “herein” and “hereunder” and words of similar import when used in this Agreement shall
refer to this Agreement as a whole and not to any particular provision of this Agreement. Section references are to this Agreement unless otherwise specified. All terms defined in this Agreement in the singular shall have comparable meanings when
used in the plural, and vice versa, unless otherwise specified. 
  

	3.	PAYMENTS, ETC.; CONSENTS AND JOINDERS 

  

	 	3.1.	Notice of Election to Share; Receipt of Shared Payment. 

  
 (a) Upon and during the continuance of an Event of Default, 
  
 (i) the Requisite 1999 Noteholders may invoke the sharing provisions hereof by sending to the Agent and the
other Creditors (other than the Lenders) a Notice of Election to Share signed by the Requisite 1999 Noteholders; 
  

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 (ii) the Requisite Lenders may invoke the sharing provisions hereof by having the Agent
send to the Creditors (other than the Lenders) a Notice of Election to Share signed by the Agent on behalf of the Requisite Lenders; 
  
 (iii) the Requisite 2000 Noteholders may invoke the sharing provisions hereof by sending to the Agent and the other Creditors (other than
the Lenders) a Notice of Election to Share signed by the Requisite 2000 Noteholders; or 
  
 (iv) the Requisite Parity Debtholders, so long as such Parity Debtholders hold at least 33 1/3% of the then outstanding Obligations, may
invoke the sharing provisions hereof by sending to the Agent and the other Creditors (other than the Lenders) a Notice of Election to Share signed by the Requisite Parity Debtholders. 
  
 (b) A Notice of Election to Share shall be sent by a Creditor or the Agent, as the case may be, by
overnight courier for receipt the next business day. 
  
 (c) Once a Notice of Election to Share has been sent pursuant to paragraph (a) above, as the case may be, such Notice shall remain in effect until the Requisite Creditors shall agree otherwise in writing, notwithstanding that
the Event of Default triggering the sending of such Notice may be waived; provided that the Person(s) sending such Notice may revoke such Notice by giving written notice to each other Creditor (other than a Lender) and the Agent so long as no
obligation pursuant to Section 3.2 on the part of any Creditor has arisen prior to such revocation. 
  
 (d) On and after the date that a Creditor (other than a Lender) shall send or receive a Notice of Election to Share in accordance
with the provisions hereof, such Creditor shall give a Notice of Shared Payment to each other Creditor (other than a Lender) and the Agent promptly upon obtaining actual knowledge of the receipt by such Creditor of a Shared Payment. The Agent shall
promptly send any such notice to the Lenders. On and after the date that the Agent shall receive or send a Notice of Election to Share in accordance with the provisions hereof, the Agent shall give a Notice of Shared Payment to each Creditor
promptly upon obtaining actual knowledge of the receipt by the Agent or any Lender of a Shared Payment. 
  

	 	3.2.	Sharing of Payments. 

  
 (a) Each Creditor (a “Receiving Creditor”) agrees that on and after the delivery by such Creditor (or in the case
of the Lenders, by the Agent) of a Notice of Election to Share or its (or, in the case of the Lenders, the Agent’s) receipt of a Notice of Election to Share, in each case in accordance with the provisions hereof, and so long as such Notice has
not been terminated pursuant to Section 3.1(c) hereof, any payment of any kind (including, without limitation, any payment resulting from a set-off of a deposit account, any offset or any payment or distribution made in the context of any
insolvency or reorganization proceeding) received by it within 90 days prior to the applicable Event of Default (the “Clawback Period”) and at any time thereafter on account of the Obligations (such payment, a “Shared
Payment”), directly or indirectly, from or on behalf of any Obligor is to be distributed to each Creditor equally and ratably in accordance with the respective Sharing Percentage of each Creditor without 

  

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discrimination or preference; provided that Shared Payments received by the Lenders during the Clawback Period shall be equal to the Net Lender Exposure.
Notwithstanding the foregoing, to the extent that any amounts available for distribution pursuant to this Section 3.2 are attributable to the Loan Obligations that relate to undrawn amounts under Letters of Credit, such amounts shall be held in
a reserve or other account unavailable to the Company or any Subsidiary thereof (the “Reserve Account”) to be established by the Agent. Amounts in the Reserve Account shall be used from time to time to pay the applicable Loan
Obligations in respect of the Letters of Credit as they become due. Any amounts remaining in the Reserve Account following the expiration or satisfaction in full of the Loan Obligations in respect of the Letters of Credit for which such sums were
held in reserve shall be applied against any Obligations remaining unpaid in accordance with this Section 3.2. Prior to the appointment of the Distribution Agent, as set forth in Section 3.3(a) hereof, each Receiving Creditor shall hold
all Shared Payments received by it in trust for the benefit of all Creditors. 
  
 (b) Each Obligor hereby grants to the Agent a lien on and security interest in the Reserve Account and all funds or other assets contained therein or credited thereto to secure first, the Letter of Credit
Obligations and then all other Obligations. 
  

	 	3.3.	Distribution Agent. 

  
 (a) Appointment. Each Creditor agrees that upon the sending of a Notice of Election to Share in accordance with and
pursuant to Section 3.1 hereof, the Requisite Creditors shall in good faith promptly seek to appoint an agent (the “Distribution Agent”) to distribute Shared Payments to the Creditors. If no Distribution Agent shall have been
appointed by the Requisite Creditors and accepted appointment in the manner hereinafter provided within 30 days after the sending of such Notice of Election to Share, any Creditor may petition any court of competent jurisdiction in New York City for
the appointment of the Distribution Agent. 
  
 (b) Acceptance of Appointment. The Distribution Agent appointed hereunder shall execute, acknowledge and deliver to each Creditor an instrument accepting such appointment and agreeing to be bound by the terms of this
Agreement. 
  
 (c) Remittance and
Distribution. Upon the appointment of the Distribution Agent, each Receiving Creditor shall remit any Shared Payment received by it to the Distribution Agent for distribution in accordance with Section 3.2 hereof. Upon receipt of any
Shared Payment, the Distribution Agent shall calculate the amount of such Shared Payment distributable to each Creditor pursuant to Section 3.2 hereof as of the date the Receiving Creditor received such Shared Payment and remit such amount to
each Creditor, accompanied by computations in reasonable detail showing the manner of calculation of the amounts distributable to each Creditor pursuant to Section 3.2 hereof. 
  

	 	3.4.	Invalidated Payments. 

  
 If any amount distributed by the Distribution Agent to the Creditors in accordance with the provisions of this Agreement is subsequently
required to be returned or repaid to any Obligor or their representatives or successors in interest, whether by court order, settlement or otherwise, each Creditor shall, promptly upon its receipt of notice thereof (together with 

  

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information explaining why such amount is required to be returned or repaid) from the Distribution Agent, pay to the Distribution Agent the pro rata portion
received by it of such amount (without interest) for payment to the appropriate Creditor or Obligor or its representatives or successors in interest, as the case may be. If any such amounts are subsequently recovered by any Creditor from any Obligor
or its representatives or successors in interest, such Creditor shall remit such amounts to the Distribution Agent and the Distribution Agent shall redistribute such amounts to the Creditors on the same basis as such amounts were originally
distributed. The obligations of the Creditors and the Distribution Agent under this Section 3.4 shall survive the repayment of the Obligations and termination of the Loan Documents, the 1999 Note Agreement, the 2000 Note Agreement and any
Parity Debt Agreement and related documents. 
  

	 	3.5.	Application of Shared Payments. 

  
 Each Obligor and each Creditor agrees that, to the extent a Receiving Creditor does not retain all or any portion of a Shared Payment,
such Receiving Creditor shall be deemed to have only applied the amount retained by such Receiving Creditor in payment of the Obligations owing to such Receiving Creditor. Each other Creditor which is allocated a portion of a Shared Payment in
accordance with Section 3.2 shall be deemed to have received such allocated portion as a direct payment of such other Creditor’s Obligations. The Creditors and the Obligors agree that no Creditors Company Loan Documents shall be satisfied
until such time such Creditor has received and retained (after giving effect to all Sharing Payments) payment in full in cash of its Obligations. 
  

	 	3.6.	Additional Obligor 

  
 A Subsidiary of the Company shall execute and deliver to the Agent and the Creditors an Additional Obligor Joinder Agreement in the form
attached hereto as Exhibit B (as amended, supplemented, restated or otherwise modified, an “Additional Obligor Joinder Agreement”) upon being designated an “Additional Obligor” by the Company. 
  

	4.	DISTRIBUTION AGENT 

  

	 	4.1.	Distributions and Consents. 

  
 In making the distributions to the Creditors provided for in Section 3 hereof, the Distribution Agent may rely upon information
available to it or supplied by each Creditor to it with respect to the amount and composition (i.e., as to principal and other amounts) of the Obligations owing to each Creditor, and the Distribution Agent shall have no liability to any
Creditor for actions taken in reliance on such information in the absence of its gross negligence or willful misconduct. Each of the Creditors hereby agrees, on two business days’ telephonic, telegraphic, telexed, overnight courier or similar
notice from the Distribution Agent, to confirm to the Distribution Agent in writing, including by telecopy of a signed confirmation or by telex, the outstanding balance of the Obligations, if any (and, if requested by the Distribution Agent,
itemized as to principal, reimbursement obligations, interest, fees, premiums and other amounts, if any), owing to such Creditor as of the date or dates specified in such notice. In the event of any distribution to any Creditor in lawful currency of
any other jurisdiction (the “Other 

  

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Currency”) than the currency of the jurisdiction in which such Obligations are payable (the “Contractual Currency”) shall
constitute a discharge of such Creditor’s Obligations only to the extent of the amount of the Contractual Currency which such Creditor could purchase in the London foreign exchange markets with the amount of the Other Currency in accordance
with normal banking procedures at the rate of exchange prevailing on the first day (other than a Saturday) on which banks in London are generally open for business following receipt of the payment first referred to above. 
  

	 	4.2.	Appointment, Powers of Distribution Agent. 

  
 Each of the Creditors, by its entering into this Agreement, hereby appoints and authorizes the Distribution Agent to act as its agent
hereunder with such powers as are specifically delegated to the Distribution Agent by the terms of this Agreement, together with such powers as are reasonably incidental thereto. The Distribution Agent shall not have a fiduciary relationship in
respect of any Creditor by reason of this Agreement. 
  

	 	4.3.	Liability. 

  
 The Distribution Agent shall have no duties to the Creditors under this Agreement except those expressly set forth herein. Neither the
Distribution Agent nor any of its officers, directors, employees or agents shall be liable to any Creditor for any action taken or omitted by it or them hereunder or in connection herewith, unless caused by its or their gross negligence or willful
misconduct. 
  

	 	4.4.	Resignation or Removal of Distribution Agent. 

  
 The Distribution Agent may resign and be discharged of its duties hereunder by giving written notice thereof to all holders of the
Obligations then outstanding. Such resignation shall take effect at such time as a successor distribution agent shall have been appointed or, if no successor is appointed before then, upon ninety (90) days prior written notice to each Creditor.
The Distribution Agent may be removed at any time with or without cause by the Requisite Creditors. Upon any such resignation or removal, the Requisite Creditors shall have the right to appoint a successor distribution agent. Upon the acceptance of
any appointment as distribution agent hereunder by a successor distribution agent, such successor distribution agent shall thereupon succeed to and become vested with all of the rights, powers, privileges and duties of the retiring Distribution
Agent. After any retiring Distribution Agent’s resignation or removal hereunder as Distribution Agent, the provisions of this Section 4 shall continue in effect for its benefit in respect of any actions taken or omitted to be taken by it
while it was acting as the Distribution Agent. 
  

	 	4.5.	Employment of Agents and Counsel. 

  
 The Distribution Agent may execute any of its duties as Distribution Agent hereunder by or through employees, agents and attorneys-in-fact
and shall not be answerable to the Creditors, except as to money or securities received by it or its authorized agents, for the default or misconduct of any such agents or attorneys-in-fact selected by it with reasonable care. The Distribution Agent
shall be entitled to advice of counsel concerning all matters pertaining to the agency hereby created and its duties hereunder. 
  

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	 	4.6.	Reliance on Documents; Counsel. 

  
 The Distribution Agent shall be entitled to rely upon any notice, consent, certificate, affidavit, letter, telegram, statement, paper or
document believed by it to be genuine and correct and to have been signed or sent by the proper Person or Persons, and, with respect to legal matters, upon the opinion or advice of counsel selected by the Distribution Agent, which counsel may be
employees of the Distribution Agent. 
  

	 	4.7.	Distribution Agent’s Reimbursement and Indemnification. 

  
 (a) The Obligors, jointly and severally, shall reimburse and indemnify the Distribution Agent for expenses incurred by the
Distribution Agent on behalf of the Creditors, in connection with the execution, delivery, administration and enforcement of this Agreement and for any liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses
or disbursements of any kind and nature whatsoever which may be imposed on, incurred by or asserted against the Distribution Agent in any way relating to or arising out of this Agreement or any other document delivered in connection herewith or the
transactions contemplated hereby, or the enforcement of any of the terms hereof, provided that the Obligors shall not be liable for any of the foregoing to the extent they arise from the gross negligence or willful misconduct of the
Distribution Agent. The obligations of the Obligors under this Section 4.7 shall survive payment of the Obligations and termination of this Agreement. 
  
 (b) Without limiting the obligations of the Obligors, the Creditors severally agree to, in accordance with their respective Sharing
Percentages (determined as of the date of delivery of the relevant request for reimbursement or indemnification), reimburse and indemnify the Distribution Agent for expenses incurred by the Distribution Agent on behalf of the Creditors, in
connection with the execution, delivery, administration and enforcement of this Agreement and for any liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements of any kind and nature whatsoever
which may be imposed on, incurred by or asserted against the Distribution Agent in any way relating to or arising out of this Agreement or any other document delivered in connection herewith or the transactions contemplated hereby, or the
enforcement of any of the terms hereof, provided that the Creditors shall not be liable for any of the foregoing to the extent they arise from the gross negligence or willful misconduct of the Distribution Agent. The obligations of the
Creditors under this Section 4.7 shall survive payment of the Obligations and termination of this Agreement. 
  

	 	4.8.	Rights as Creditor. 

  
 In the event the Distribution Agent, in its individual capacity, is a Creditor, the Distribution Agent shall have the same rights and
powers hereunder in such capacity as any Creditor and may exercise the same as though it were not the Distribution Agent, and the term “Creditor” or “Creditors” shall, at any time when the Distribution Agent is a Creditor, unless
the context otherwise indicates, include the Distribution Agent in its individual capacity. The Distribution Agent in its individual capacity may accept deposits from, lend money to, and generally engage in any kind of trust, debt, equity or other
transaction, in addition to those 

  

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contemplated by this Agreement, with the Company and its Subsidiaries. The Distribution Agent, in its individual capacity, is not obligated to be a Creditor.

  

	5.	MISCELLANEOUS 

  

	 	5.1.	Governing Law. 

  
 THIS AGREEMENT SHALL BE CONSTRUED, INTERPRETED AND ENFORCED IN ACCORDANCE WITH, AND GOVERNED BY, THE INTERNAL LAWS OF THE STATE OF NEW
YORK. 
  

	 	5.2.	Creditor Credit Decision. 

  
 Each Creditor acknowledges that it has, independently and without reliance upon any other Creditor and based on the financial statements
prepared by the Company and its Subsidiaries and such other documents and information as it has deemed appropriate, made its own credit analysis and decision to enter into this Agreement. Each Creditor also acknowledges that it will, independently
and without reliance upon any other Creditor and based on such documents and information as it shall deem appropriate at the time, continue to make its own credit decisions in taking or not taking action under this Agreement. 
  

	 	5.3.	Counterparts. 

  
 This Agreement may be executed in several counterparts, each of which shall be deemed an original but all of which shall constitute one
agreement, and shall constitute a binding agreement when executed by each of the parties hereto. A facsimile or electronic copy of the signature of any party on any counterpart shall be effective as the signature of the party executing such
counterpart for purposes of effectiveness of this Agreement. 
  

	 	5.4.	Successors and Assigns; Additional Creditors. 

  
 (a) This Agreement shall be binding upon and inure to the benefit of the successors and assigns of the parties hereto including any
assignees of the Obligations. Each Creditor agrees that it will not assign any of the Obligations unless the assignee agrees to become a party to and be bound by this Sharing Agreement by executing a Creditor Joinder Agreement in the form attached
hereto as Exhibit C (the “Creditor Joinder Agreement”), provided that the failure of any Creditor to obtain such acknowledgment shall not affect the effectiveness of the immediately preceding sentence. 
  
 (b) Any Parity Debtholder may, with the prior written
consent of the Agent, the Requisite 1999 Noteholders and the Requisite 2000 Noteholders (such consent not to be unreasonably withheld and shall be deemed to have been given unless the Agent, the Requisite 1999 Noteholders or the Requisite 2000
Noteholders, shall have notified the Creditors to the contrary within ten (10) business days of receipt of the request for such consent), become a party hereto and be subject to all the provisions hereof and entitled to the benefits hereof if
such Parity Debtholder shall execute and deliver to each other Creditor a Creditor Joinder Agreement. 
  

 -12- 

	 	5.5.	Amendments. 

  
 This Agreement may be amended only in writing executed by the Requisite Creditors. 
  

	 	5.6.	Termination. 

  
 This Agreement (except for Section 3.4 and Section 4.7) shall terminate upon the payment in full of all Obligations. 

 

	 	5.7.	Cooperation. 

  
 Each party hereto agrees to cooperate fully with the other parties hereto, in the exercise of its reasonable judgment, to the end that the
terms and provisions of this Agreement may be promptly and fully carried out. Each party hereto also agrees, from time to time, to execute and deliver any and all other agreements, documents or instruments and to take such other actions, all as may
be reasonably necessary or desirable to effectuate the terms, provisions and the intent of this Agreement. 
  

	 	5.8.	No Waiver. 

  
 No failure or delay on the part of any Creditor in exercising any right, power or remedy hereunder shall operate as a waiver thereof, nor
shall any single or partial exercise of any such right, power or remedy preclude any other or further exercise thereof or the exercise of any other right, power or remedy hereunder. 
  

	 	5.9.	Notices. 

  
 All written communications provided for hereunder shall be sent by first class mail or nationwide overnight delivery service, with charges
prepaid (provided that any Notice of Election to Share or Notice of Shared Payment or copy thereof to be sent by the Agent or a Creditor, as the case may be, shall be sent by nationwide overnight delivery service) and (i) if to any
Creditor (other than a Lender), addressed to such Creditor at the address specified in Annex 1 hereto or in a Creditor Joinder Agreement, or at such other address as such Creditor shall have specified to the other Creditors and the Agent in writing,
(ii) if to any Lender or the Agent, addressed to the Agent (and the Agent shall forward each such communication to each Lender) at the address specified in Annex 1 hereto, or at such other address as the Agent shall have specified to the
Creditors (other than the Lenders) and (iii) if to the Distribution Agent, addressed to the Distribution Agent at such address as the Distribution Agent shall have specified to each Creditor and the Agent in writing. 
  

	 	5.10.	Notices of Events of Default. 

  
 Each Creditor agrees use its best efforts to promptly provide each other Creditor (other than the Lenders) and the Agent written notice of
any Event of Default arising under such Creditor’s Loan Documents. The failure to provide such written notice shall not affect the rights of any Creditor hereunder. 
  

 -13- 

	 	5.11.	Agent. 

  
 Pursuant to Section 14.1(e) of the Credit Agreement, (a) the Lenders have authorized the Agent to enter into, and act with
respect to, this Agreement on their behalf and (b) the Lenders agree to be bound by the terms hereof. Except as to any assignment pursuant to Section 15.1 of the Credit Agreement, the Agent agrees on its behalf and behalf of each Lender
that no Lender shall be released from its obligations in respect of this Agreement or any Shared Payment without the prior written consent of the Requisite 1999 Noteholders, the Requisite 2000 Noteholders and the Requisite Parity Debtholders.

  

	 	5.12.	Third Party Beneficiaries. 

  
 No Person, including, without limitation, the Obligors, other than the Creditors, the Agent, the Distribution Agent and their respective
successors and assigns, shall have any rights under this Agreement. 
  
 [Remainder of page intentionally blank. Next page is signature page.] 
  

 -14- 

 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed and
delivered by their proper and duly authorized officers as of the day and year first written above. 
  

			
	BANK OF AMERICA, N.A., successor by
merger to Fleet National Bank, as Agent
		
	By:	 	/s/    MATTHEW C.
CORREIA        
	Name:	 	Matthew C. Correia
	Title:	 	Assistant Vice President
	
	1999 Noteholders:
	
	ALLSTATE INSURANCE COMPANY
		
	By:	 	/s/    ROBERT B. BODETT        
	Name:	 	Robert B. Bodett
		
	By:	 	/s/    JERRY D. ZINKULA        
	Name:	 	Jerry D. Zinkula
		
	 	 	 Authorized Signatories

	
	ALLSTATE LIFE INSURANCE COMPANY
		
	By:	 	/s/    ROBERT B. BODETT        
	Name:	 	Robert B. Bodett
		
	By:	 	/s/    JERRY D. ZINKULA        
	Name:	 	Jerry D. Zinkula
		
	 	 	 Authorized Signatories

  

 [Signature Page to Sharing Agreement] 

			
	STATE FARM LIFE INSURANCE COMPANY
		
	By:	 	/s/    JEFF ATTWOOD        
	Name:	 	Jeff Attwood
	Title:	 	Investment Officer
		
	By:	 	/s/    LARRY ROTTUNDA        
	Name:	 	Larry Rottunda
	Title:	 	Assistant Secretary
	
	MASSACHUSETTS MUTUAL LIFE INSURANCE COMPANY
	By:	 	Babson Capital Management LLC
as Investment Adviser
		
	By:	 	/s/    MICHAEL HERMSEN        
	Name:	 	Michael Hermsen
	Title:	 	Managing Director
	
	PRUDENTIAL RETIREMENT INSURANCE AND ANNUITY COMPANY
	By:	 	Prudential Investment Management,
Inc., as Investment Manager
		
	By:	 	/s/    PAUL MEIRING        
	Name:	 	Paul Meiring
	Title:	 	Vice President
	
	NATIONWIDE LIFE INSURANCE COMPANY
		
	By:	 	/s/    WAYNE T. FRISBEE        
	Name:	 	Wayne T. Frisbee
	Title:	 	Vice President-Portfolio Management

  
 [Signature Page
to Sharing Agreement] 

			
	THE CANADA LIFE ASSURANCE COMPANY
		
	By:	 	/s/    TAD ANDERSON        
	Name:	 	Tad Anderson
	Title:	 	Assistant Vice President, Investments, U.S. Operations
		
	By:	 	/s/    EVE HAMPTON        
	Name:	 	Eve Hampton
	Title:	 	Vice President, Investments, U.S. Operations
	
	PAN-AMERICAN LIFE INSURANCE COMPANY
		
	By:	 	/s/    LISA BAUDOT        
	Name:	 	Lisa Baudot
	Title:	 	Vice President, Securities
	
	2000 Noteholders
	
	THE PRUDENTIAL INSURANCE COMPANY OF AMERICA
		
	By:	 	/s/    PAUL MEIRING        
	Name:	 	Paul Meiring
	Title:	 	Vice President
	
	ALLSTATE LIFE INSURANCE COMPANY
		
	By:	 	/s/    ROBERT B. BODETT        
	Name:	 	Robert B. Bodett
		
	By:	 	/s/    JERRY D. ZINKULA        
	Name:	 	Jerry D. Zinkula
		
	 	 	 Authorized Signatories

  
 [Signature Page
to Sharing Agreement] 

			
	AMERICAN HERITAGE LIFE INSURANCE COMPANY
		
	By:	 	/s/    ROBERT B. BODETT        
	Name:	 	Robert B. Bodett
		
	By:	 	/s/    JERRY D. ZINKULA        
	Name:	 	Jerry D. Zinkula
		
	 	 	 Authorized Signatories

	
	NATIONWIDE LIFE INSURANCE COMPANY
		
	By:	 	/s/    WAYNE T. FRISBEE        
	Name:	 	Wayne T. Frisbee
	Title:	 	Vice President-Portfolio Management
	
	NATIONWIDE LIFE AND ANNUITY INSURANCE COMPANY
		
	By:	 	/s/    WAYNE T. FRISBEE        
	Name:	 	Wayne T. Frisbee
	Title:	 	Vice President-Portfolio Management
	
	NATIONWIDE INDEMNITY COMPANY
		
	By:	 	/s/    WAYNE T. FRISBEE        
	Name:	 	Wayne T. Frisbee
	Title:	 	Vice President-Portfolio Management

  
 [Signature Page
to Sharing Agreement] 

 The Obligors agree to perform their obligations under Section 3.5, Section 3.6 and
Section 4.7 and acknowledge that no consent or other action by them is necessary for any action to be taken under, or for any amendment of, this Sharing Agreement, including, without limitation, the appointment of the Distribution Agent or a
successor distribution agent, except that their consent shall be necessary for any amendment to Section 3.5 or Section 4.7. The Obligors hereof hereby grant to the Agent a security interest in and lien upon the Reserve Account and all
funds or other assets contained therein or credited thereto as security for (a) first, the Letter of Credit Obligations and (b) second, all other Obligations. 
  

			
	BARNES GROUP INC.
		
	By:	 	/s/    LAWRENCE W.
O’BRIEN        
	Name:	 	Lawrence W. O’Brien
	Title:	 	Vice President and Treasurer
		
	By:	 	/s/    WILLIAM C. DENNINGER
        
	Name:	 	William C. Denninger
	Title:	 	Senior Vice President, Finance and Chief Financial Officer
	
	BARNES GROUP SWITZERLAND GmbH
		
	By:	 	/s/    WILLIAM C. DENNINGER
        
	Name:	 	William C. Denninger
	Title:	 	Director

  
 [Signature Page
to Sharing Agreement] 

 Annex 1 
  
 Addresses of the Noteholders and the Agent 
  
 NOTEHOLDERS: 
  

 Annex 1-1 

 EXHIBIT A 
  
 Form of Notice of Election to Share 
  
 [DATE] 
  
 Re: Sharing Agreement/Notice of Election to Share 
  
 Dear Sir or Madam: 
  
 Reference is hereby made to the Sharing Agreement, dated as of January 11, 2006, among the holders of the Loan Obligations party thereto, the holders
of Noteholder Obligations party thereto, the holders of Parity Debt Agreement Obligations, if any, party thereto, and Bank of America, N.A., as Agent (as heretofore amended, modified, supplemented or restated from time to time, the “Sharing
Agreement”). Unless otherwise defined herein, terms defined in the Sharing Agreement are used herein as therein defined. 
  
 An Event of Default has occurred by reason of [explain cause of Event of Default and sections of the relevant agreement which have been violated]. In
addition, other Events of Default may exist. In accordance with the Sharing Agreement, this Notice of Election to Share is hereby being sent to invoke the sharing provisions of the Sharing Agreement. 
  

	
	 Very truly yours,

  

 Exhibit A-1 

 Distribution List 
  
 [Insert Names and Addresses of those receiving a copy of the Notice of Election to Share] 
  

 Exhibit A-2 

 EXHIBIT B 
  
 [FORM OF ADDITIONAL OBLIGOR JOINDER AGREEMENT] 
  
 ADDITIONAL OBLIGOR JOINDER AGREEMENT 
 TO SHARING AGREEMENT 
  
 Reference is hereby made to the Sharing Agreement dated as of January 11, 2006 (as it may have been amended, modified or otherwise supplemented, the “Sharing Agreement”) among the Lenders, the 1999 Noteholders, the
2000 Noteholders, the Parity Debtholders, if any, and Bank of America, N.A., as agent for the Lenders under the Credit Agreement. Capitalized terms used herein and not otherwise defined herein shall have the respective meanings specified in the
Sharing Agreement. 
  
 WHEREAS, pursuant to
Section 3.6 of the Sharing Agreement the undersigned has been designated on “Additional Obligor” and agreed to execute this Joinder Agreement with respect to its Parity Debt Agreement Obligations. 
  
 NOW THEREFORE, in consideration thereof and for other good and
valuable consideration, the receipt of which is hereby acknowledged, the undersigned agrees as follows: 
  
 Section 1. Agreement to be Bound. By executing and delivering this Joinder Agreement, the undersigned hereby agrees to become a party
to and be bound by, and comply with, the provisions of the acknowledgement to the Sharing Agreement in the same manner as if the undersigned were an original Obligor. The undersigned agrees that it shall be an Additional Obligor, as such term is
defined in the Sharing Agreement, and that the undersigned shall have all the obligations described therein. All references to the term “Additional Obligor” or “Obligor” in the Sharing Agreement, or in any document or instrument
executed and delivered or furnished, or to be executed and delivered or furnished, in connection therewith shall be deemed to be references to, and shall include, the undersigned. 
  
 Section 2. Governing Law. This Joinder Agreement shall be governed by and construed in accordance with
the substantive laws of the State of New York, without regard to any conflicts of law provisions thereof. 
  

 Exhibit B-1 

 IN WITNESS WHEREOF, the undersigned has caused this Joinder Agreement to be duly executed by its
duly authorized officer, all as of the date and year set forth below. 
  

			
	[__________________________________]
	as Additional Obligor
		
	By:	 	 
	Name:	 	 
	Title:	 	 
		
	Date:	 	 ____________________________

  

 Exhibit B-2 

 EXHIBIT C 
  
 [FORM OF LENDER JOINDER AGREEMENT] 
  
 LENDER JOINDER AGREEMENT TO SHARING AGREEMENT 
  
 Reference is hereby made to the Sharing Agreement dated as of January 11, 2006 (as it may have been amended, modified
or otherwise supplemented, the “Sharing Agreement”) among the 1999 Noteholders, the 2000 Noteholders, the Parity Debtholders, if any, and Bank of America, N.A., as agent for the Lenders under the Credit Agreement. Capitalized terms
used herein and not otherwise defined herein shall have the meaning specified in the Sharing Agreement. 
  
 WHEREAS, the Sharing Agreement requires that any assignee of any Noteholder Obligations become a party to the Sharing Agreement contemporaneously
with acquiring such Noteholder Obligations; and 
  
 WHEREAS, the Sharing Agreement also provides that, subject to the terms thereof, any Parity Debtholder may become a party to the Sharing Agreement by executing this Joinder Agreement; and 
  
 WHEREAS, the undersigned has agreed to execute this Joinder Agreement
in consideration of, and as a condition to, [becoming a Noteholder/becoming a Parity Debtholder]. 
  
 NOW THEREFORE, in consideration thereof and for other good and valuable consideration, the receipt of which is hereby acknowledged, the undersigned
agrees as follows: 
  
 Section 1. Agreement to be
Bound. By executing and delivering this Joinder Agreement, the undersigned hereby agrees to become a Creditor under the Sharing Agreement and be bound by, and comply with, the provisions of the Sharing Agreement in the same manner as if the
undersigned were an original signatory to the Sharing Agreement. The undersigned agrees that it shall be a Creditor and [Noteholder/Parity Debtholder] under the Sharing Agreement, and that the undersigned shall have all the obligations described
therein with respect to the Obligations held by the undersigned. All references to the terms “Creditor” or “[Noteholder/Parity Debtholder]” in the Sharing Agreement, or in any document or instrument executed and delivered or
furnished, or to be executed and delivered or furnished, in connection therewith shall be deemed to be references to, and shall include, the undersigned. 
  
 Section 2. Notices. Notices and other communications provided for under Sharing Agreement to be provided to the undersigned shall be
sent to the addresses set forth on Schedule I attached hereto. 
  
 Section 3. Governing Law. This Joinder Agreement shall be governed by and construed in accordance with the substantive laws of the State of New York, without regard to any conflicts of law provisions thereof. 

 

 Exhibit C-1 

 IN WITNESS WHEREOF, the undersigned has caused this Joinder Agreement to be duly executed by its
duly authorized officer, all as of the date and year set forth below. 
  

			
	[__________________________________]
	as additional Creditor
		
	By:	 	 
	Name:	 	 
	Title:	 	 
		
	Date:	 	 

  

 Exhibit C-2Assumption and Amended Agreement

 EXHIBIT 4.3 (iii) 
  
 BARNES GROUP INC. 
  

  
 ASSUMPTION AND AMENDMENT
AGREEMENT 
  

  
 Dated as of August 26, 2005 
  
 re: 
 U.S. $24,500,000 7.66% Amended
and Restated Senior 
 Notes due November 12, 2007 
 U.S. $45,500,000 7.80% Amended and Restated Senior 
 Notes due November 12, 2010

  
 BARNES GROUP INC.

 123 Main Street 
 Bristol, Connecticut 06010 
  
 ASSUMPTION AND
AMENDMENT AGREEMENT 
  
 re: 
 U.S. $24,500,000 7.66% Amended and Restated Senior 
 Notes due November 12, 2007 
 U.S. $45,500,000 7.80% Amended and Restated Senior

 Notes due November 12, 2010 
  
 As of August 26, 2005 
  
 To the Persons identified on 
 Schedule A and Schedule B attached
hereto 
  
 Ladies and Gentlemen: 

 
 BARNES GROUP INC., a Delaware corporation (together with its
successors and assigns, “Barnes”), and 3031786 NOVA SCOTIA COMPANY, a Nova Scotia company (together with its successors and assigns, “3031786”), hereby agree with you as follows: 
  

	1.	BACKGROUND; SUCCESSION AND ASSUMPTION; AMENDMENTS AND RESTATEMENTS; CONSENT. 

  
 1.1. Background. 
  
 (a) Issuance and Sale of 1999 Existing Notes. Pursuant to that certain Note Purchase Agreement dated as of November 12, 1999
(as amended up to, but excluding, the Effective Date, the “Existing Note Purchase Agreement”), entered into by 3031786 with each of the institutions named on Schedule A thereto, 3031786 issued its 
  
 (i) 7.66% Senior Notes due November 12, 2007 in the
original aggregate principal amount of U.S.$24,500,000 (collectively, as amended up to, but excluding, the Effective Date, the “Existing 7.66% Notes”); and 
  
 (ii) 7.80% Senior Notes due November 12, 2010 in the original aggregate principal amount of
U.S.$45,500,000 (collectively, as amended up to, but excluding, the Effective Date, the “Existing 7.80% Notes”). The Existing 7.66% Notes and the Existing 7.80% Existing Notes are referred to, collectively, herein as the
“Existing Notes”. 
  
 One hundred percent of the
original aggregate principal amount of the Existing Notes is outstanding and is held by the institutions identified as “1999 Noteholders” on the signature pages to this Assumption Agreement (collectively, the “1999
Noteholders”). 

 (b) Relationship between 3031786 and Barnes. 3031786 is, and since prior to the
Original Closing Date has been, a direct wholly-owned subsidiary of Barnes. Barnes has guaranteed the obligations of 3031786 pursuant to that certain Guaranty Agreement dated November 12, 1999. 
  
 1.2. 3031786 and Barnes’ Request for Consent. 
  
 3031786 and Barnes hereby request that each of you grant your consent to the
following, as further provided in this Assumption Agreement: 
  
 (a) the assumption by Barnes of the obligations of 3031786 under the Existing Notes and the Existing Note Purchase Agreement; 
  

(b) the release of 3031786 of its obligations under the Existing Notes and the Existing Note Purchase Agreement (such release is
referred to herein as the “Release”); 
  
 (c) the amendment of certain terms and provisions of the Existing Note Purchase Agreement; and 
  
 (d) the amendment and restatement of the Existing Notes, 
  
 1.3. Assumption by Barnes. 
  

Barnes has authorized its assumption of, and (subject to the effectiveness of your Consent as provided in Section 1.6 hereof) hereby assumes and
shall be fully liable for, all of the obligations and undertakings of 3031786, whether now existing or hereafter arising, provided for in the Existing Note Purchase Agreement (as amended by this Assumption Agreement) and the Existing Notes (as
amended and restated pursuant to this Assumption Agreement), including, without limitation, the obligation to duly and punctually pay the principal of, and the interest and Make-Whole Price, if any, on, the Existing Notes (as amended and restated by
this Assumption Agreement) in accordance with the terms of the Existing Note Purchase Agreement (as amended by this Assumption Agreement) and the Existing Notes (as amended and restated by this Assumption Agreement). Such assumption and agreement by
Barnes is referred to herein as the “Assumption.” 
  
 1.4. Amendments. 
  
 (a)
Amendment of Existing Note Purchase Agreement. Effective as of the Effective Date, the Existing Note Purchase Agreement is hereby amended (as so amended, the “Amended Note Agreement”) as follows: 
  
 (i) Amendments to Sections 4, 5 and 6. Sections 4, 5
and 6 of the Existing Note Purchase Agreement are hereby amended by deleting all references to “the Company” or “The Company”, as applicable in such Sections and substituting “Barnes” in lieu thereof. 
  

 2 

 (ii) Amendments to Section 7. Section 7 of the Existing Note Purchase
Agreement is deleted in its entirety and replaced in its entirety, for all purposes of the Amended Note Agreement, with the following: 
  
 “SECTION 7. COMPANY BUSINESS COVENANTS. 
  
 Barnes covenants that on and after the date of the Assumption Agreement until the Notes are paid in full: 
  
 7.1 Payment of Taxes and Claims. 
  
 Except in situations where the failure to pay would not
result in a material adverse impact on Barnes and its Subsidiaries taken as a whole, Barnes and each such Subsidiary, will pay, before they become delinquent, 
  

	 	(a)	all taxes, assessments and governmental charges or levies imposed upon it or its Property, and 

  

	 	(b)	all claims or demands of any kind (including, but not limited to, those of materialmen, mechanics, carriers, warehousemen, landlords and other like Persons) which, if unpaid, might
result in the creation of a Lien upon its Property not permitted by Section 7.6, 

  
 provided that items of the foregoing description need not be paid while being contested in good faith and by appropriate proceedings, if and for so long
as book reserves reasonably believed by Barnes and independent certified public accountants of recognized national standing to be adequate have been established with respect thereto; provided further that, unless contesting in good faith in
accordance with the provisions hereof, notwithstanding the foregoing provisions of this Section 7.1, Barnes and each such Subsidiary will pay all taxes known by Senior Management to be due and payable no later than fifteen days after the date
such taxes are due. 
  
 7.2 Maintenance of
Properties and Corporate Existence. 
  
 (a)
Except where the failure to do so would not have a material adverse impact on Barnes and its Subsidiaries taken as a whole, Barnes will and will cause each of its Subsidiaries to: 
  

	 	(i)	Property — maintain its Property in good condition and make all necessary renewals, replacements, additions, betterments and improvements thereto required to keep such
Property in good condition and in compliance with all requirements of law; 

  

 3 

	 	(ii)	Insurance — keep its properties adequately insured at all times, by financially sound and reputable insurers; maintain such other insurance, to such extent and against
such risks, including fire and other risks insured against by extended coverage as is customary with companies in the same or similar businesses located or operating in areas with similar geological conditions; maintain in full force and effect
public liability insurance against claims for personal injury or death or property damage occurring upon, in, about or in connection with the use of any properties owned, occupied or controlled by it, in such amounts as Barnes or any Subsidiary, as
the case may be, shall reasonably deem necessary; and maintain such other insurance as may be required by law; 

  

	 	(iii)	Financial Records — keep true books of records and accounts in which full and correct entries will be made of all of its business transactions, and will reflect in its
financial statements adequate accruals and appropriations to reserves, all in accordance with generally accepted accounting principles, consistently applied; and 

  

	 	(iv)	Corporate Existence and Rights — do or cause to be done all things necessary to preserve and keep in full force and effect its existence, rights and franchises, except
as otherwise permitted by Section 7.4, provided, however, that Barnes may liquidate or sell any Subsidiary if the transaction is permitted by Section 7.4. 

  
 (b) Barnes will and will cause each of its Subsidiaries to
comply with all laws, ordinances or governmental rules or regulations to which each of them is subject, including, without limitation, Environmental Laws, and except as disclosed on Exhibit D, will obtain and maintain in effect all licenses,
certificates, permits, franchises and other governmental authorizations necessary to the ownership of their respective properties or to the conduct of their respective business, in each case to the extent failure to so comply, maintain or obtain
could, individually or in the aggregate, reasonably be expected to have a material adverse effect on Barnes or any Subsidiary. 
  
 7.3 Maintenance of Office. 
  
 Barnes will maintain an office in the State of Connecticut where notices, presentations and demands in respect of the Assumption Agreement
or the Notes may be made upon it. The office shall be maintained at 123 Main Street, Bristol, Connecticut 06010, until such time as Barnes shall notify the holders of the Notes of a change of location. 
  

 4 

 7.4 Sale of Assets or Merger. 
  
 (a) Sale of Assets — Barnes will not, nor will
it permit any of its Subsidiaries to, directly or indirectly, except in the ordinary course of business, sell, lease, transfer or otherwise dispose of any of its Property or assets, now owned or hereafter acquired, if, as a result of such sale,
lease, transfer or disposition, the aggregate net book value or fair market value , whichever shall be higher, of all Property and assets sold, leased, transferred or otherwise disposed of by Barnes and its Subsidiaries in the then current fiscal
year of Barnes would exceed an amount equal to 10% of the book value (computed in accordance with GAAP) of all Property and assets of Barnes and its Consolidated Subsidiaries at the end of the preceding year. 
  
 (b) Consolidation; Merger — Barnes will not, nor
will it permit any of its Subsidiaries to, directly or indirectly, consolidate with or merge into any other corporation, or permit another corporation to merge into it, provided, however, that (i) any Subsidiary of Barnes may be
merged into Barnes or another wholly-owned Subsidiary, (ii) Barnes or any Subsidiary of Barnes may merge or consolidate with another Person or business, if Barnes or such Subsidiary, as the case may be, is the surviving corporation,
(iii) Barnes or any Subsidiary may consolidate with or merge with another Person or business in a transaction where Barnes or the Subsidiary is not the surviving entity if (1) the continuing or surviving entity shall assume in writing all
of the obligations of Barnes under this Agreement, the Assumption Agreement and the Notes, (2) the continuing or surviving entity shall not, immediately after such merger or consolidation, be in default of any of Barnes’ obligations under
this Agreement, the Assumption Agreement or the Notes, (3) the continuing or surviving entity shall be a corporation organized under the laws of the United States or any state thereof, and (4) after giving effect to such consolidation or
merger, the continuing or surviving entity could incur $1 of additional Indebtedness under Section 7.7. 
  
 7.5 Leases. 
  
 Barnes will not, nor will it not permit any of its Subsidiaries, directly or indirectly, to incur, create or assume any commitment to make
any direct or indirect payment, whether as rent or otherwise, under any lease, rental or other arrangement for the use of real or personal Property or both of any other Person unless (a) after giving effect to such lease the aggregate rental
obligations of Barnes and its Subsidiaries (exclusive of obligations to pay taxes and rental increments attributable to escalator clauses) during any fiscal year shall not exceed an amount equal to 15% of the book value (computed in accordance with
GAAP) of all Properties and assets of Barnes and its Consolidated Subsidiaries at the end of the 

  

 5 

 
preceding fiscal year or (b) such lease was in existence as of the Closing Date and disclosed on Schedule I hereto. 
  
 7.6 Liens and Encumbrances. 
  
 (a) Negative Pledge. Barnes will not, nor will it
permit any of its Subsidiaries to, directly or indirectly, incur, create, assume or permit to exist any mortgage, pledge, security interest, lien, charge or other encumbrance of any nature whatsoever (including conditional sales or other title
retention agreements) on any of its Property or assets, whether owned at the date hereof or hereafter acquired, or assign, or permit any of its Subsidiaries to assign, any right to receive income, except: 
  
 (i) liens incurred or pledges and deposits made in
connection with worker’s compensation, unemployment insurance, old-age pensions, social security and public liability and similar legislation; 
  
 (ii) liens securing the performance of bids, tenders, leases, contracts (other than for the repayment of borrowed money), statutory
obligations, surety and appeal bonds and other obligations of like nature, incurred as an incident to and in the ordinary course of business; 
  
 (iii) statutory liens of landlords and other liens imposed by law, such as carriers’, warehousemen’s, mechanics’,
materialmen’s and vendors’ liens incurred in good faith in the ordinary course of business; 
  
 (iv) liens securing the payment of taxes, assessments and governmental charges or levies, either (1) not delinquent, or
(2) being contested in good faith by appropriate proceedings; 
  
 (v) zoning restrictions, easements, licenses, reservations, restrictions on the use of real property or minor irregularities incident thereto which do not in the aggregate materially detract from the value of the
Property or assets of Barnes or such Subsidiary, as the case may be, or impair the use of such Property in the operation of its business; 
  
 (vi) purchase money liens on real Property or equipment (which are filed against the real Property or equipment within 180 days of
purchase) that do not exceed 100% of the fair market value of the related Property; 
  
 (vii) liens existing on any Property prior to the acquisition thereof by Barnes or any Subsidiary, provided such lien was not created in
contemplation of such acquisition, the amount 

  

 6 

 
secured thereby does not exceed the fair market value of the Property and such lien does not extend to any other Property of Barnes or such Subsidiary;

  
 (viii) other liens, that in the aggregate, do
not exceed 15% of the book value (computed in accordance with GAAP) of all Properties and assets of Barnes and its Consolidated Subsidiaries at the end of the preceding fiscal year. 
  
 (b) Equal and Ratable Lien; Equitable Lien. In case any Property is subjected to a Lien in violation
of Section 7.6(a), Barnes will make or cause to be made provision whereby the Notes will be secured pursuant to documents reasonably satisfactory to the holders of at least 51% in outstanding principal amount of the Notes (exclusive of Notes
owed by Barnes, Subsidiaries and Affiliates) equally and ratably, with all other obligations secured thereby, and in any case the Notes shall have the benefit, to the full extent that, and with such priority as, the holders may be entitled thereto
under applicable law, of an equitable Lien on such Property securing the Notes. Such violation of Section 7.6(a) shall constitute an Event of Default hereunder, whether or not any such provision is made pursuant to this Section 7.6(b).

  
 7.7 Indebtedness. 
  
 Except to the extent permitted under Section 7.7(e) and
(f), Barnes will not, nor will it permit any of its Subsidiaries to, directly or indirectly incur, create, assume or permit to exist any Indebtedness other than: 
  

	 	(a)	Indebtedness incurred by Barnes Group under the Revolving Credit Agreement; 

  

	 	(b)	the Notes; 

  

	 	(c)	Indebtedness outstanding on the date hereof under Barnes Group Inc.’s $25,000,000, 7.13% Senior Notes due December 5, 2005; 

  

	 	(d)	Indebtedness outstanding on the date hereof under Barnes Group Inc.’s $60,000,000, 8.59% Senior Notes due November 21, 2008; 

  

	 	(e)	Indebtedness which constitutes extensions, renewals or replacements on substantially the same terms and conditions (and does not increase the amount outstanding) of (a) through
(c) above; and 

  

	 	(f)	 additional Indebtedness of Barnes and its Subsidiaries; provided, however, that (i) the total Indebtedness of 

  

 7 

	 	 
Barnes’ Subsidiaries shall not at any time exceed $100 million; (ii) total Indebtedness of Barnes’ Domestic Subsidiaries shall not at any time
exceed $10 million (excluding from the calculation thereof for all purposes except compliance with Section 7.4(b)(4) any preexisting indebtedness of a newly acquired Domestic Subsidiary for a period not exceeding 90 days after acquisition of
such Domestic Subsidiary), and (iii) the aggregate amount of all Indebtedness of Barnes and its Subsidiaries at any time outstanding shall not exceed an amount equal to 155% of Consolidated Net Worth at such time; provided further that if any
Subsidiary shall have aggregate Indebtedness of at least $50,000,000, then the Company shall cause such Subsidiary’s lenders to enter into an intercreditor agreement with the holders of the Notes in form and substance satisfactory to the
Required Holders. 

  
 7.8 Net
Worth. 
  
 Barnes will not permit Consolidated
Net Worth of Barnes and its Subsidiaries at any time to be less than $201 million plus 50% of Consolidated Net Income for each fiscal year beginning December 31, 1999 (but without duplication for any fiscal year in which Consolidated Net Income
is a negative amount), with the annual adjustments to be applicable as of December 31, 1999 and as of the end of each subsequent fiscal year. 
  
 7.9 ERISA Compliance. 
  
 Neither Barnes nor any Related Person will at any time permit any Pension Plan maintained by it to: 
  
 (i) engage in any “prohibited transaction” as such
term is defined in Section 4975 of the Internal Revenue Code of 1986, as amended, or described in Section 406 of ERISA; 
  
 (ii) incur any “accumulated funding deficiency” as such term is defined in Section 302 of ERISA, whether or not waived; or

  
 (iii) terminate under circumstances which
could result in the imposition of a Lien on the Property of Barnes or any Subsidiary pursuant to Section 4068 of ERISA. 
  
 7.10 Transactions with Affiliates. 
  
 Neither Barnes nor any Subsidiary will enter into any transaction (except transactions which do not in any one calendar year involve in
the 

  

 8 

 
aggregate an amount in excess of $500,000), including, without limitation, the purchase, sale or exchange of Property or the rendering of any service, with
any Affiliate except in the ordinary course of and pursuant to the reasonable requirements of Barnes or such Subsidiary’s business and upon fair and reasonable terms no less favorable to Barnes or such Subsidiary than would be obtained in a
comparable arm’s-length transaction with a Person not an Affiliate. 
  
 7.11 Tax Consolidation. 
  
 Barnes will not file or consent to the filing of any consolidated income tax return with any Person other than a Subsidiary. 
  
 7.12 Acquisition of Notes. 
  
 Neither Barnes nor any Subsidiary or any Affiliate will, directly or indirectly, acquire or make any offer to acquire any Notes unless
Barnes or such Subsidiary or Affiliate has offered to acquire the Notes, pro rata, from all holders of the Notes upon the same terms. In case any of such parties acquires any Notes, such Notes shall thereafter be cancelled and no Notes shall be
issued in substitution therefor. 
  
 7.13 Lines
of Business. 
  
 Neither Barnes nor any
Subsidiary will engage in any line of business if as a result thereof the business of Barnes and its Subsidiaries taken as a whole would be substantially different from what it was at December 31, 1998, as described in the Private Placement
Memorandum. 
  
 7.14 Restricted Payments and
Restricted Investments. 
  
 Barnes will not nor
shall it permit any Subsidiary to, at any time make or permit to exist any loans or advances to, or purchase any stock, other securities or evidences of indebtedness of, or make or permit to exist any investment or acquire any interest whatsoever
in, any other Person, except (a) the purchase of Barnes’ common or preferred stock, (b) loans or advances of Barnes or any Subsidiary of Barnes (in addition to loans or advances permitted by clauses (d) and (e) of this
Section 7.14) not in excess of $10,000,000 aggregate principal amount for Barnes and its Subsidiaries at any time outstanding, (c) investments of its cash by Barnes or any Subsidiary in (i) marketable direct obligations of, or
marketable obligations guaranteed by, the United States of America or Canada, or marketable obligations of any instrumentality or agency thereof, the payment of the principal and interest of which is unconditionally guaranteed by the United States
of America or Canada, (ii) certificates of deposit or other obligations issued by, or bankers’ acceptances of , any bank or trust company organized under the laws of the Federal Republic of Germany, France, the United Kingdom, Japan,
Canada or the United 

  

 9 

 
States of America or any state thereof (including foreign branches of any such bank or trust company) and having capital, surplus and undivided profits in
excess of $100,000,000, (iii) open market commercial paper with a maturity not in excess of 270 days form date of acquisition thereof and having the highest credit rating by either Standard & Poor’s Corporation or Moody’s
Investors Service, Inc., or (iv) in the case of any foreign Subsidiary of Barnes in a country in which a Subsidiary exists as of the date of the Assumption Agreement, such investments of a comparable quality and term to the other investments
permitted by this clause (c) as are usually made in the jurisdiction or jurisdictions in which the business of such foreign Subsidiary is principally conducted by prudent corporate investors in like circumstances, (d) loans or advances of
Barnes to any of its Subsidiaries and loans or advances of any Subsidiary of Barnes to Barnes or another such Subsidiary, (e) purchases of stock or other securities of any corporations, associations or other business entities; provided,
however, that the aggregate cost to or fair market value of the consideration paid by Barnes and its Subsidiaries for such stock or securities of any such corporation, association or other business entity shall not exceed the sum of:
(A) $25,000,000, plus (B) 50% of Consolidated Net Income for the period commencing on October 1, 1999 and ending on the date of such stock or securities purchase (or minus 100% of Consolidated Net Income for such period if
Consolidated Net Income for such period is a loss) or (f) such other investments in an aggregate amount not to exceed $250,000 as Barnes or a Subsidiary may elect. 
  
 7.15 Limitation on Restrictions on Dividends by Subsidiaries, etc. 
  
 Barnes shall not permit any Subsidiary or other entity in
which it or any of its subsidiaries has an equity investment (a “Subsidiary Investment”) to be or become subject to any restriction (except restrictions applicable to corporations generally and those restrictions set forth in the Revolving
Credit Agreement), whether arising by agreement, its articles of incorporation, by-laws or other constituent documents of such Subsidiary or Subsidiary Investment or otherwise, or the right of such Subsidiary or Subsidiary Investment from time to
time to (w) declare and pay Stock Payments with respect to capital stock owned by Barnes from time to time owed to Barnes or any of its Subsidiaries, or (y) make loans or advances to Barnes or any of its Subsidiaries, or (z) transfer
any of its properties or assets to Barnes or any of its Subsidiaries; provided, however, that such restriction may be permitted with respect to any Subsidiary or Subsidiary Investment in which Barnes or a Subsidiary directly or
indirectly owns less than 80% of the Voting Stock and in which Barnes’ or such Subsidiary’s cumulative investment since the Closing Date (in terms of cash invested in and/or assets contributed to the entity) (i) individually is less
than 10% of the book value of the assets of Barnes and its 

  

 10 

 
consolidated Subsidiaries, and (ii) when taken together with all such Subsidiaries and Subsidiary Investments subject to any such restrictions in which
Barnes or a Subsidiary directly or indirectly owns less than 80% of the Voting Stock, is less than 15% of the book value of the assets of Barnes and its consolidated Subsidiaries.” 
  
 (iii) Amendments to Section 8. 
  
 (1) Sections 8.1(a), (b), (c), (d), (e), (g) and (h) of the Existing Note Purchase Agreement are
hereby amended by (i) deleting all references to “the Guarantor” and the words “or the Guarantor”, as applicable, and substituting “Barnes” in lieu thereof and (ii) deleting all references to “the
Company” in such Sections in their entirety. 
  
 (2) Section 8.1(f) of the Existing Note Purchase Agreement is hereby amended by deleting all references to “the Company” and substituting “Barnes” in lieu thereof. 
  
 (3) Section 8.2 of the Existing Note Purchase Agreement
is hereby amended by (i) deleting all references to “the Company” in such Section and substituting “Barnes” in lieu thereof and (ii) deleting the all references the “the Guarantor” and the words “the
Guarantor and”, as applicable, in their entirety. 
  
 (4) Section 8.4 of the Existing Note Purchase Agreement is hereby amended by (i) deleting in the first line of such Section the words “The Guarantor and the Company each” and substituting “Barnes” in lieu
thereof, (ii) deleting all remaining references to “the Guarantor” in such Section and substituting “Barnes” in lieu thereof (ii) deleting the words “and the Company each” from such Section and all remaining
references to “the Company” in their entirety. 
  
 (iv) Amendments to Section 9. 
  
 (1) Sections 9.1(a) through (j), inclusive of the Existing Note Purchase Agreement are hereby amended by (i) deleting in the words “the Company”, “the Company or” and “or the
Company” in their entirety and (ii) deleting all references to “the Guarantor” in such Sections and substituting “Barnes” in lieu thereof. 
  
 (2) The caption and text of Sections 9.1(l) and (m) of the Existing Note Purchase Agreement are hereby
deleted and there is substituted therefor “Intentionally Omitted”. 
  

 11 

 (3) Section 9.2 of the Existing Note Purchase Agreement is hereby amended by
(i) deleting all references to “the Guarantor” in their entirety and (ii) deleting all references to “the Company” or “The Company”, as applicable, in their entirety and substituting “Barnes” in lieu
thereof. 
  
 (v) Amendments to
Section 10. 
  
 (1) The following
definitions appearing in Section 10 to the Existing Note Purchase Agreement are hereby amended and restated in their entirety to read as follows: 
  
 “Business Day - any day other than a Saturday, Sunday or a U.S. national, Connecticut or New York holiday. 
  
 “Notes shall mean the Amended 7.66% Notes and
the Amended 7.80% Notes.” 
  
 (2) The
definitions of “Change of Control”, “Consolidated Assets”, “Consolidated Net Worth”, “Related Person”, and “Senior Management” appearing in Section 10 to the Existing Note Purchase Agreement are
hereby amended by deleting all references to “the Guarantor” or “the Company”, as applicable, and substituting “Barnes” in lieu thereof. 
  
 (3) Section 10 of the Existing Note Purchase Agreement is amended by adding the following definitions
in their appropriate alphabetical order: 
  
 “Assumption Agreement shall mean that certain Assumption and Amendment Agreement, dated the Effective Date, among Barnes, 3031786 and each of the holders of Notes a party thereto, as it may from time to time be amended or
supplemented.” 
  
 “Barnes shall
mean Barnes Group, Inc., a Delaware corporation.” 
  
 “Effective Date shall mean August 26, 2005.” 
  
 “3031786 shall mean 3031786 Nova Scotia Company, a Nova Scotia corporation.” 
  
 “Amended 7.66% Notes shall mean Barnes’ Amended and Restated 7.66% Senior Notes due November 12, 2007 issued
pursuant to the Assumption Agreement.” 
  

 12 

 “Amended 7.80% Notes shall mean Barnes’ Amended and Restated 7.80%
Senior Notes due November 12, 2010 issued pursuant to the Assumption Agreement.” 
  
 (vi) Amendments to Section 11. Sections 11.1, 11.2, 11.3, 11.4 and 11.5 of the Existing Note Purchase Agreement are hereby
amended by (i) deleting all references to “the Guarantor” or the words “or the Guarantor” in their entirety and (ii) deleting all references to “the Company” or “The Company”, as applicable, in their
entirety and substituting “Barnes” in lieu thereof. 
  
 (b) Amendment and Restatement of Existing Notes. 
  
 (i) Existing 7.66% Notes. Effective as of the Effective Date, each then outstanding Existing 7.66% Note shall be deemed to be
amended and restated to be in the form of Note set forth as Exhibit B-1 hereto, without changing the outstanding principal amount thereof or amount of interest accrued thereon. The Existing 7.66% Notes as so amended and restated (including each note
delivered pursuant to any provision of this Assumption Agreement and any note delivered in substitution or exchange for any such note pursuant to any such provisions, as each of such notes may be amended, restated or otherwise modified from time to
time) are hereinafter sometimes referred to, collectively, as the “Amended 7.66% Notes.” 
  
 (ii) Existing 7.80% Notes. Effective as of the Effective Date, each then outstanding Existing 7.80% Note shall be deemed to be
amended and restated to be in the form of Note set forth as Exhibit B-2 hereto, without changing the outstanding principal amount thereof or amount of interest accrued thereon. The Existing 7.80% Notes as so amended and restated (including each note
delivered pursuant to any provision of this Assumption Agreement and any note delivered in substitution or exchange for any such note pursuant to any such provisions, as each of such notes may be amended, restated or otherwise modified from time to
time) are hereinafter sometimes referred to, collectively, as the “Amended 7.80% Notes”; and together with the Amended 7.66% Notes, are hereinafter sometimes referred to as the “Notes.” 
  
 (c) Amendments to Exhibits. The Existing Note
Purchase Agreement is amended to delete therefrom each of Exhibit B-1 and Exhibit B-2 and to substitute, respectively, in lieu thereof Exhibit B-1 and Exhibit B-2 attached hereto. 
  
 (d) Terms Defined. The amendments to the Existing Note Purchase Agreement referred to in
Section 1.4(a) and the amendment and restatement of the Existing Notes referred to in Section 1.4(b) are referred to herein, collectively, as the “Amendments and Restatements.” 
  
 (e) Notice Provision. Notices to be delivered to
Barnes pursuant to Section 18 of each of the Amended Note Agreement should be addressed as follows until such 

  

 13 

 
time as Barnes shall have specified a different address to each holder of a Note in accordance with said Section 18: 
  
 Barnes Group Inc. 
 123 Main Street 
 Bristol, Connecticut 06010

 Attn: Vice President, Treasurer 
  
 1.5. Waiver of 2000 Note Purchase Agreement. Each of the current holders identified on Schedule B attached hereto (the “2000
Noteholders” and, together with the 1999 Noteholders, the “Noteholders”), of the $60,000,000 aggregate principal amount of 8.59% Senior Notes due November 21, 2008 issued and sold pursuant to a Note Agreement, dated as
of November 21, 2000 by and among Barnes and Purchasers listed in Schedule A attached thereto and as amended by Amendment No. 1 to the Note Agreement, dated as of February 21, 2002 and Amendment No. 2 to the Note Agreement, dated
as of February 5, 2003 (the “2000 Note Agreement”), hereby waive the provision of Section 7.7(b) of the 2000 Note Agreement which restricts Barnes’ ability to assume the obligations of 3031786. 
  
 1.6. Consent by Holder, Exchange of Notes, etc. 
  
 (a) Subject to Barnes’ satisfaction of each of the
conditions set forth in Section 3, each 2000 Noteholder, by its execution and delivery of this Assumption Agreement, agrees and consents to the Assumption, the Release and the Amendments and Restatements (its “Consent”).

  
 (b) On or before the Effective Date, Barnes
will deliver to the 1999 Noteholders’ special counsel, Bingham McCutchen LLP, One State Street, Hartford, CT 06103, one or more Notes, of the series and in the denominations specified below such 1999 Noteholder’s name on Schedule A hereto,
dated the date hereof, and payable to such 1999 Noteholder or as otherwise indicated on Schedule A hereto, against delivery by such 1999 Noteholders of the Existing Notes or before the Effective Date to Bingham McCutchen LLP, One State Street,
Hartford, CT 06103. On the Effective Date, Bingham McCutchen LLP will forward the Notes to the 1999 Noteholders as directed in Schedule A hereto and the Existing Notes to 3031786 for cancellation. All amounts owing under, and evidenced by, the
Existing Notes as of the Effective Date shall continue to be outstanding under, and shall after the Effective Date be evidenced by, the Notes, and shall be repayable in accordance with the Amended Note Agreement and the Notes. 
  
 1.7. Acquisition for Investment. 
  
 Each 1999 Noteholder hereby acknowledges that the Notes have not and will not
be registered or qualified under the Securities Act, any securities laws of any state of the United States of America, or the securities laws of any other applicable jurisdiction and such 1999 Noteholder represents to Barnes that it is acquiring the
Notes listed on Schedule A hereto below its name for its own account or for the account of one or more separate accounts maintained by it for investment and with no present intention or view of distributing or otherwise selling the 

  

 14 

 
Notes or any part thereof, but without prejudice to each such 1999 Noteholder’s right at all times to 
  
 (a) sell or otherwise dispose of all or any part of the
Notes 
  
 (i) under a registration statement
filed under the Securities Act and/or other applicable securities law, or 
  
 (ii) in a transaction exempt from the registration or qualification requirements of the Securities Act and other applicable securities laws, and 
  
 (b) have control over the disposition of all of its assets to the fullest extent required by any applicable
insurance law. 
  
 It is understood that, in making the
representations set out in Section 2.10, Barnes is relying, to the extent applicable, upon your representations in this Section 1.7. 
  
 1.8. Failure to Deliver, Failure of Conditions. 
  
 If on or before the Effective Date Barnes fails to tender to any 1999 Noteholder the Notes to be acquired by it on such date, or if the conditions
specified in Section 3 hereof to be fulfilled on or before the Effective Date have not been fulfilled, the 1999 Noteholders shall, at their election, be relieved of all further obligations under this Assumption Agreement, without thereby
waiving any rights the 1999 Noteholders may have by reason of such failure or such nonfulfillment, and the Existing Note Purchase Agreement and the Existing Notes shall remain in full force and effect and the Consent, the Assumption, the Release and
the Amendments and Restatements shall be of no force or effect. 
  
 1.9. Expenses. 
  
 (a)
Generally. Whether or not the transactions contemplated hereby are consummated, Barnes shall promptly (and in any event within 30 days of receiving any statement or invoice therefor) pay all reasonable fees, expenses and costs incurred by the
Noteholders in connection with such transactions, including, without limitation: 
  
 (i) the reasonable fees and the disbursements of Bingham McCutchen LLP, the Noteholders’ special counsel, and 
  
 (ii) the reasonable fees, expenses, costs and disbursements
incurred in complying with each of the conditions set forth in Section 3 hereof. 
  
 (b) Counsel. Without limiting the generality of the foregoing, it is agreed and understood that Barnes will pay, on or before the
Effective Date, the reasonable fees and the disbursements of the Noteholders’ special counsel pursuant to statements thereof presented prior to the Effective Date, and Barnes will also pay upon receipt of any statement thereof, any additional
reasonable fees and additional disbursements of such special counsel pursuant to any statement thereof rendered after the Effective Date in 

  

 15 

 
connection with the issuance of the Notes and the other transactions contemplated hereby. 
  
 (c) Survival. The obligations of Barnes under this Section 1.9 shall survive the payment or
prepayment of the Notes and the termination of this Assumption Agreement and the Amended Note Agreement. 
  

	2.	WARRANTIES AND REPRESENTATIONS. 

  
 To induce the Noteholders to enter into this Assumption Agreement, Barnes warrants and represents to the Noteholders that, as of the Effective Date:

  
 2.1. Organization; Power and Authority. 
  
 Each of Barnes and 3031786 is a corporation duly organized, validly existing
and in good standing under the laws of its jurisdiction of incorporation, and is duly qualified as a foreign corporation and is in good standing in each jurisdiction in which such qualification is required by law, other than those jurisdictions as
to which the failure to be so qualified or in good standing could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. Barnes has the corporate power and authority to own or hold under lease the properties
it purports to own or hold under lease, to transact the business it transacts and proposes to transact, to execute and deliver this Assumption Agreement and the Notes, and to perform the provisions of this Assumption Agreement, the Amended Note
Agreement and the Notes. 3031786 has the corporate power and authority to execute and deliver this Assumption Agreement and to perform the provisions thereof. Each Subsidiary of 3031786 is also a Subsidiary of Barnes. 
  
 2.2. Authorization, etc. 
  
 (a) This Assumption Agreement, the Amended Note Agreement
and the Notes have been duly authorized and duly executed and delivered by all necessary corporate action on the part of Barnes, and this Assumption Agreement and the Amended Note Agreement constitute, and upon execution and delivery thereof each
Note will constitute, a legal, valid and binding obligation of Barnes, enforceable against it in accordance with its terms, except as such enforceability may be limited by (a) applicable bankruptcy, insolvency, reorganization, moratorium or
other similar laws affecting the enforcement of creditors’ rights generally and (b) general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law). 
  
 (b) This Assumption Agreement has been duly authorized and
duly executed and delivered by all necessary corporate action on the part of 3031786, and this Assumption Agreement constitutes a legal, valid and binding obligation of 3031786, enforceable against it in accordance with its terms, except as such
enforceability may be limited by (a) applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting the enforcement of creditors’ rights generally and (b) general principles of equity (regardless of
whether such enforceability is considered in a proceeding in equity or at law). 
  

 16 

 2.3. Disclosure 
  
 This Assumption Agreement, the documents, certificates or other writings delivered to the Noteholders by or on behalf of
3031786 or Barnes in connection with the transactions contemplated hereby, the financial statements most recently delivered to the Noteholders pursuant to Section 8.1 of the Existing Note Purchase Agreement, taken as a whole, do not contain any
untrue statement of a material fact or omit to state any material fact necessary to make the statements therein not misleading in light of the circumstances under which they were made. All of said financial statements (including in each case the
related schedules and notes) fairly present in all material respects the consolidated financial position of Barnes and its Subsidiaries as of the respective dates specified in such Schedule and the consolidated results of their operations and cash
flows for the respective periods so specified and have been prepared in accordance with GAAP consistently applied throughout the periods involved except as set forth in the notes thereto (subject, in the case of any interim financial statements, to
normal year-end adjustments). Except as disclosed in this Assumption Agreement or in one of the documents, certificates or other writings identified therein, or in the financial statements most recently delivered to the Noteholders pursuant to
Section 8.1 of the Existing Note Purchase Agreement, since December 31, 2004, there has been no change in the financial condition, operations, business, properties or prospects of Barnes or any Subsidiary, except changes that individually
or in the aggregate would not reasonably be expected to have a Material Adverse Effect. There is no fact known to Barnes or 3031786 that would reasonably be expected to have a Material Adverse Effect that has not been set forth herein or in the
other documents, certificates and other writings delivered to the Noteholders by or on behalf of 3031786 or Barnes specifically for use in connection with the transactions contemplated hereby. 
  
 2.4. Compliance with Law, other Instruments, etc. 
  
 Neither (a) the execution, delivery and performance by 3031786 and
Barnes of this Assumption Agreement, nor (b) the execution, delivery and performance by Barnes of the Amended Note Agreement or the Notes, will 
  
 (i) contravene, result in any breach of, or constitute a default under, or result in the creation of any Lien in respect of any property
of Barnes or any Subsidiary under, any indenture, mortgage, deed of trust, loan, purchase or credit agreement, lease, corporate charter or by-laws, or any other agreement or instrument to which Barnes or any Subsidiary is bound or by which Barnes or
any Subsidiary or any of their respective properties may be bound or affected, 
  
 (ii) conflict with or result in a breach of any of the terms, conditions or provisions of any order, judgment, decree, or ruling of any
court, arbitrator or Governmental Authority applicable to Barnes or any Subsidiary, or 
  
 (iii) violate any provision of any statute or other rule or regulation of any Governmental Authority applicable to Barnes or any
Subsidiary. 
  

 17 

 2.5. Governmental Authorizations. 
  
 No consent, approval or authorization of, or registration, filing or declaration with, any Governmental Authority or any
non-governmental Person, including, without limitation, any creditor or stockholder of Barnes or any Subsidiary is required that has not been obtained in connection with (a) the execution, delivery and performance by 3031786 or Barnes of this
Assumption Agreement, or (b) the execution, delivery and performance by Barnes of the Amended Note Agreement or the Notes. 
  
 2.6. Litigation. 
  
 (a) Except as disclosed on Schedule 2.6, there are no actions, suits or proceedings pending or, to the knowledge of 3031786 or Barnes,
threatened against or affecting Barnes or any Subsidiary or any property of Barnes or any Subsidiary in any court or before any arbitrator of any kind or before or by any Governmental Authority that if adversely determined, individually or in the
aggregate, would reasonably be expected to have a Material Adverse Effect. 
  
 (b) Neither Barnes nor any Subsidiary is in violation in any respect of any term of any charter instrument or by-law and neither Barnes nor any Subsidiary is in default of any order, judgment, decree or ruling of any
court, arbitrator or Governmental Authority or is in violation of any applicable law, ordinance, rule or regulation (including, without limitation, Environmental Laws) of any Governmental Authority, which default or violation, individually or in the
aggregate, would reasonably be expected to have a Material Adverse Effect. 
  
 2.7. Existing Indebtedness. 
  
 Except as described therein, Schedule 2.7 hereto sets forth a complete and correct list of all outstanding Indebtedness of Barnes and its Restricted Subsidiaries as of June 30, 2005 (and specifying, as to each such Indebtedness, the
collateral, if any, securing such Indebtedness), since which date there has been no Material change in the amounts, interest rates, sinking funds, installment payments or maturities of the Indebtedness of Barnes or its Restricted Subsidiaries.
Neither Barnes nor any Restricted Subsidiary is in default and no waiver of default is currently in effect, in the payment of any principal or interest on any Indebtedness of Barnes or any Restricted Subsidiary and no event or condition exists with
respect to any Indebtedness of Barnes or any Restricted Subsidiary that would permit (or that with notice or the lapse of time, or both, would permit) one or more Persons to cause such Indebtedness to become due and payable before its stated
maturity or before its regularly scheduled dates of payment. 
  
 2.8. No Defaults. 
  
 No “Default” or
“Event of Default” under, and as defined in, the Existing Note Purchase Agreement exists immediately prior to the Effective Date. Upon the effectiveness of this Assumption Agreement no “Default” or “Event of Default”
under, and as defined in, the Amended Note Agreement will exist or occur. 
  

 18 

 2.9. Organization and Ownership of Shares of Subsidiaries. 
  
 (a) Schedule 2.9 is (except as noted therein) a complete and
correct list of Barnes’s active Subsidiaries, showing, as to each Subsidiary, the correct name thereof, the jurisdiction of its organization, the percentage of shares of each class of its capital stock or similar equity interests outstanding
owned by Barnes and each other Subsidiary. 
  
 (b) All of the outstanding shares of capital stock or similar equity interests of each Subsidiary shown in Schedule 2.9 as being owned by Barnes and its Subsidiaries have been validly issued, are fully paid and nonassessable and are owned
by Barnes or another Subsidiary free and clear of any Lien (except as otherwise disclosed in Schedule 2.9). 
  
 (c) Each Subsidiary identified in Schedule 2.9 is a corporation or other legal entity duly organized, validly existing and in good
standing under the laws of its jurisdiction of organization, and is duly qualified as a foreign corporation or other legal entity and is in good standing in each jurisdiction in which such qualification is required by law, other than those
jurisdictions as to which the failure to be so qualified or in good standing would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. Each such Subsidiary has the corporate or other power and authority
to own or hold under lease the properties it purports to own or hold under lease and to transact the business it transacts and proposes to transact. 
  
 2.10. Private Offering by Barnes. 
  
 Neither Barnes nor anyone acting on its behalf has offered the Notes or any similar Securities for sale to, or solicited any offer to buy any of the same
from, or otherwise approached or negotiated in respect thereof with, any person other than the Noteholders, each of which has been offered the Notes at a private sale for investment. Neither Barnes nor anyone acting on its behalf has taken, or will
take, any action that would subject the issuance or sale of the Notes to the registration requirements of Section 5 of the Securities Act. 
  

	3.	CERTAIN CONDITIONS PRECEDENT. 

  
 As provided in Section 1.6(a) hereof, your Consent is subject to the following conditions: 
  
 3.1. Representations and Warranties. 
  
 The representations and warranties of 3031786 and Barnes in this Assumption
Agreement shall be correct on the Effective Date. 
  
 3.2.
Performance; No Default. 
  
 3031786 and Barnes shall have
performed and complied with all agreements and conditions contained in this Assumption Agreement required to be performed or complied with by each prior to or on the Effective Date and on the Effective Date, after giving effect to the transactions
contemplated by this Assumption Agreement, no Default or Event of Default (as such terms are defined in the Amended Note Agreement) shall have occurred and be continuing. 
  

 19 

 3.3. Execution and Delivery of this Agreement. 
  
 3031786, Barnes and each of the Noteholders shall have executed and delivered
a counterpart of this Assumption Agreement. 
  
 3.4. Compliance
Certificates. 
  
 (a) Officers’
Certificate. Each of Barnes and 3031786 shall have delivered to the Noteholders an Officer’s Certificate, dated the Effective Date, certifying that the conditions specified in Sections 3.1, 3.2 and 3.10 have been fulfilled. 
  
 (b) 3031786 Secretary’s Certificate. 3031786
shall have delivered to the Noteholders a certificate of its Secretary or one of its Assistant Secretaries, dated the Effective Date, certifying as to the resolutions attached thereto and other corporate proceedings relating to the authorization,
execution and delivery of this Assumption Agreement. 
  
 (c) Barnes’ Secretary’s Certificate. Barnes shall have delivered to the Noteholders a certificate of its Secretary or one of its Assistant Secretaries, dated the Effective Date, certifying as to the resolutions attached
thereto and other corporate proceedings relating to the authorization, execution and delivery of this Assumption Agreement and the Notes. 
  
 3.5. Opinions of Counsel. 
  
 The Noteholders shall have received an opinion in form and substance satisfactory to them, dated the Effective Date, from Signe Gates, Esq., General
Counsel for Barnes and from Stewart McKelvey Stirling Scales, special counsel to 3031786, substantially in the form set out in Exhibit 3.5, and covering such other matters incident to the transactions contemplated hereby as the Noteholders or their
counsel may reasonably request (and 3031786 and Barnes hereby instruct such counsel to deliver such opinion to the Noteholders). The Noteholders shall have received an opinion from Bingham McCutchen, LLP, their special counsel, in form and substance
satisfactory to them. 
  
 3.6. Exchange of Notes.

  
 The substitution of Notes for the Existing Notes described
in Section 1.6(b) shall have occurred between Barnes and each 1999 Noteholder. 
  
 3.7. Payment of Special Counsel Fees. 
  
 Without limiting the provisions of Section 1.5 of the Amended Note Agreement, Barnes shall have paid on or before the Effective Date the reasonable fees, charges and disbursements of the Noteholders’ special
counsel to the extent reflected in a statement of such counsel rendered to Barnes at least one Business Day prior to the Effective Date. 
  

 20 

 3.8. Amendment Fee. 
  
 Barnes shall have paid to each of the 1999 Noteholders an amendment fee in connection with the execution and delivery of
this Assumption Agreement, in an amount equal to the product of (i) the aggregate outstanding principal amount of the Existing Notes held by such 1999 Noteholder on the Effective Date multiplied by (ii) 0.10% (10 basis points) (the
“Amendment Fee”). The Amendment Fee shall have been paid in immediately available funds to the account or accounts of such 1999 Noteholder as specified below such 1999 Noteholders’ name in Schedule A attached hereto.

  
 3.9. Private Placement Numbers. 
  
 A Private Placement Number issued by Standard & Poor’s CUSIP
Service Bureau (in cooperation with the Securities Valuation Office of the National Association of Insurance Commissioners) shall have been obtained for each series of Notes. 
  
 3.10. Changes in Corporate Structure. 
  
 Except as disclosed in Schedule 3.10, (i) 3031786 shall not have changed its jurisdiction of incorporation or been a
party to any merger or consolidation and shall not have succeeded to all or any substantial part of the liabilities of any other entity, at any time following the date of the most recent financial statements delivered pursuant to Section 8.1(b)
of the Existing Note Purchase Agreement and (ii) Barnes shall not have changed its jurisdiction of incorporation or been a party to any merger or consolidation and shall not have succeeded to all or any substantial part of the liabilities of
any other entity, at any time following the date of the financial statements delivered pursuant to Section 2.3 of this Assumption Agreement. 
  
 3.11. Payment of Interest. 
  
 3031786 shall have paid to each Noteholder the interest accrued on the unpaid principal balance of the 7.66% Notes or the 7.80% Notes, as applicable, from
May 12th, 2005 through and including August 25, 2005 (“Interest Payment”). The Interest Payment shall be paid in immediately available funds to the accounts of such 1999 Noteholder as specified below such 1999
Noteholders’ name in Schedule A attached hereto. 
  
 3.12.
Proceedings Satisfactory. 
  
 All proceedings taken in
connection with this Assumption Agreement and all documents and papers relating hereto shall be satisfactory to each of the Noteholders and their special counsel. Each of the Noteholders and their special counsel shall have received copies of such
documents and papers (whether or not specifically referred to above in this Section 3) as they may reasonably request in connection therewith, in form and substance satisfactory to them. 
  

 21 

	4.	INTERPRETATION OF THIS ASSUMPTION AGREEMENT. 

  
 4.1. Terms Defined. 
  
 The terms used herein and not otherwise defined herein shall have the meanings assigned to such terms in the Amended Note Agreement. As used in this
Assumption Agreement, the following terms have the respective meanings specified below or set forth in the Section or other part hereof following such term (such definitions, unless otherwise provided, to be equally applicable to both the singular
and the plural forms of the terms defined): 
  
 Amended
Note Agreement — Section 1.4(a). 
 Notes — Section 1.4(b)(ii). 
 Amended 7.66% Notes — Section 1.4(b)(i). 
 Amended 7.80% Notes — Section 1.4(b)(ii). 
 Amendments and Restatements
— Section 1.4(d). 
 Assumption — Section 1.3. 
 Assumption Agreement — means this Assumption and Amendment Agreement as it may from time to time be amended or supplemented.

 Barnes — the introductory paragraph hereof. 
 Consent — Section 1.6(a). 
 Effective Date – August 26, 2005. 
 Existing Note Purchase Agreement —
Section 1.1(a). 
 Existing Notes — Section 1.1(a)(ii). 
 Existing 7.66% Notes — Section 1.1(a)(i). 
 Existing 7.80% Notes — Section 1.1(a)(ii). 
 Interest Payment —
Section 3.11. 
 3031786 — the introductory paragraph hereof. 
 Noteholders — Section 1.1(a). 
 Original Closing Date — November 12, 1999. 
 Release — Section 1.2(b). 

2000 Note Agreement—Section 1.5. 
  
 4.2. Section Headings, etc. 
  
 The titles of the Sections appear as a matter of convenience only, do not constitute a part hereof and shall not affect the construction hereof. The words
“herein,” “hereof,” “hereunder,” and “hereto” refer to this Assumption Agreement as a whole and not to any particular Section or other subdivision. 
  

	5.	MISCELLANEOUS. 

  
 5.1. Effect of Amendments. 
  
 Except as expressly provided herein, (a) no terms or provisions of any agreement are modified or changed by this Assumption Agreement, (b) the
terms of this Assumption Agreement shall not operate as a waiver by any Noteholder of, or otherwise prejudice any Noteholder’s rights, remedies or powers under, the Existing Note Purchase Agreement or under 

  

 22 

 
any applicable law and (c) the terms and provisions of the Existing Note Purchase Agreement shall continue in full force and effect, as amended by this
Assumption Agreement. 
  
 5.2. Successors and Assigns.

  
 This Assumption Agreement shall inure to the benefit of
and be binding upon the successors and assigns of each of the parties hereto. The provisions hereof are intended to be for the benefit of each of the Noteholders and shall be enforceable by any successor or assign of any such Noteholder, whether or
not an express assignment of rights hereunder shall have been made by any Noteholder or its successors or assigns. 
  
 5.3. Governing Law. 
  
 THIS ASSUMPTION AGREEMENT SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH, AND THE RIGHTS OF THE PARTIES SHALL BE GOVERNED BY, THE LAW OF THE STATE
OF CONNECTICUT EXCLUDING, TO THE EXTENT PERMITTED BY THE LAW OF SUCH STATE, CHOICE-OF-LAW PRINCIPLES OF THE LAW OF SUCH STATE THAT WOULD REQUIRE THE APPLICATION OF THE LAWS OF A JURISDICTION OTHER THAN SUCH STATE. 
  
 5.4. Waivers and Amendments. 
  
 Neither this Assumption Agreement nor any term hereof may be changed, waived,
discharged or terminated orally, or by any action or inaction, but only by an instrument in writing signed by each of the parties signatory hereto. The terms and provisions of the respective Existing Note Purchase Agreement, as amended by or
pursuant to the terms of this Assumption Agreement, may be further amended or modified in accordance with the provisions of the respective Amended Note Agreement. 
  
 5.5. Duplicate Originals, Execution in Counterpart. 
  
 Two or more originals of this Assumption Agreement may be signed by the parties, each of which shall be an original but all
of which together shall constitute one and the same instrument. This Assumption Agreement may be executed in one or more counterparts and shall be effective when at least one counterpart shall have been executed by each party hereto, and each set of
counterparts which, collectively, show execution by each party hereto shall constitute one duplicate original. 
  
 5.6. Survival of Representations and Warranties. 
  
 All representations and warranties contained herein shall survive the execution and delivery of this Assumption Agreement and the Notes, the transfer by
the Noteholders of any Note (or any portion thereof or interest therein) and the payment of the Notes, and may be relied upon by any subsequent holder of an Note, regardless of any investigation made at any time by or on behalf of the Noteholders.

  

 23 

 5.7. Entire Agreement. 
  
 This Assumption Agreement constitutes the final written expression of all of the terms hereof and is a complete and
exclusive statement of those terms. 
  
 [Remainder of Page
Intentionally Blank. Next Page is Signature Page.] 
  

 24 

 If you are in agreement with the foregoing, please sign the form of agreement on the accompanying
counterpart of this Assumption Agreement and return it to Barnes and 3031786, whereupon the foregoing shall become a binding agreement between you, Barnes and 3031786. 
  

			
	3031786 NOVA SCOTIA COMPANY
		
	By:	 	/s/    DAVID J. SINDER        
	 Name:
	 	David J. Sinder
	 Title:
	 	Treasurer
	
	BARNES GROUP INC.
		
	By:	 	/s/    LAWRENCE W.
O’BRIEN        
	 Name:
	 	Lawrence W. O’Brien
	 Title:
	 	Vice President and Treasurer
		
	By:	 	/s/    DAVID J. SINDER        
	 Name:
	 	David J. Sinder
	 Title:
	 	Assistant Treasurer

  
 The
foregoing is hereby agreed 
 to by each of the following 
 Noteholders as of the date hereof. 
  

			
	1999 Noteholders:
	
	ALLSTATE LIFE INSURANCE COMPANY
		
	By:	 	/s/    ROBERT B. BODETT        
	 Name:
	 	Robert B. Bodett
	 Title:
	 	 
		
	By:	 	/s/    JERRY D. ZINKULA        
	 Name:
	 	Jerry D. Zinkula
	 Title:
	 	 
	
	 Authorized Signatories

  

			
	ALLSTATE INSURANCE COMPANY
		
	By:	 	/s/    ROBERT B. BODETT        
	 Name:
	 	Robert B. Bodett
	 Title:
	 	 
		
	By:	 	/s/    JERRY D. ZINKULA        
	 Name:
	 	Jerry D. Zinkula
	 Title:
	 	 
	
	 Authorized Signatories

  

			
	PAN-AMERICAN LIFE INSURANCE COMPANY
		
	By:	 	/s/    LISA BAUDOT        
	 Name:
	 	Lisa Baudot
	 Title:
	 	Vice President, Securities

  

			
	MASSACHUSETTS MUTUAL LIFE INSURANCE COMPANY
	
	By: Babson Capital Management LLC, as Investment Advisor
		
	By:	 	/s/    ELISABETH A.
PERENICK        
	 Name:
	 	Elisabeth A. Perenick
	 Title:
	 	Managing Director

  

			
	STATE FARM LIFE INSURANCE COMPANY
		
	By:	 	/s/    JEFF ATTWOOD        
	 Name:
	 	Jeff Attwood
	 Title:
	 	Investment Officer
		
	By:	 	/s/    LARRY ROTTUNDA        
	 Name:
	 	Larry Rottunda
	 Title:
	 	Assistant Secretary

  

			
	THE CANADA LIFE ASSURANCE COMPANY
		
	By:	 	/s/    TAD ANDERSON        
	 Name:
	 	Tad Anderson
	 Title:
	 	Assistant Vice President, Investments, U.S. Operations
		
	By:	 	/s/    EVE A. HAMPTON        
	 Name:
	 	Eve A. Hampton
	 Title:
	 	Vice President, Investments, U.S. Operations

  

			
	PRUDENTIAL RETIREMENT INSURANCE AND ANNUITY COMPANY
	
	By: Prudential Investment Management, Inc., as Investment Manager
		
	By:	 	/s/    PAUL MEIRING        
	 Name:
	 	Paul Meiring
	 Title:
	 	Vice President

  

			
	NATIONWIDE LIFE INSURANCE COMPANY
		
	By:	 	/s/    JOSEPH P. YOUNG        
	 Name:
	 	Joseph P. Young
	 Title:
	 	Authorized Signatory

  

			
	2000 Noteholders:
	
	ALLSTATE LIFE INSURANCE COMPANY
		
	By:	 	/s/    ROBERT B. BODETT        
	 Name:
	 	Robert B. Bodett
	 Title:
	 	 
		
	By:	 	/s/    JERRY D. ZINKULA        
	 Name:
	 	Jerry D. Zinkula
	 Title:
	 	 
		
	 	 	Authorized Signatories

  

			
	AMERICAN HERITAGE LIFE INSURANCE COMPANY
		
	By:	 	/s/    ROBERT B. BODETT        
	 Name:
	 	Robert B. Bodett
	 Title:
	 	 
		
	By:	 	/s/    JERRY D. ZINKULA        
	 Name:
	 	Jerry D. Zinkula
	 Title:
	 	 
		
	 	 	Authorized Signatories

  

			
	NATIONWIDE LIFE INSURANCE COMPANY
		
	By:	 	/s/    JOSEPH P. YOUNG        
	 Name:
	 	Joseph P. Young
	 Title:
	 	Authorized Signatory
	
	NATIONWIDE LIFE AND ANNUITY INSURANCE COMPANY
		
	By:	 	/s/    JOSEPH P. YOUNG        
	 Name:
	 	Joseph P. Young
	 Title:
	 	Authorized Signatory
	
	NATIONWIDE INDEMNITY COMPANY
		
	By:	 	/s/    JOSEPH P. YOUNG        
	 Name:
	 	Joseph P. Young
	 Title:
	 	Authorized Signatory

  

			
	THE PRUDENTIAL INSURANCE COMPANY OF AMERICA
		
	By:	 	/s/    PAUL MEIRING        
	 Name:
	 	Paul Meiring
	 Title:
	 	Vice President

  
 Signature Page to
Assumption and Amendment Agreement 

  
 EXHIBIT B-1 

 
 [FORM OF AMENDED AND RESTATED 7.66% SENIOR NOTE] 
  
 BARNES GROUP INC. 
  
 7.66% Amended and Restated Senior Note due November 12, 2007

  

			
	 U.S. $______________
	  	Hartford, Connecticut
	 PPN: 067806 E* 6
	  	[Date]

  
 FOR VALUE RECEIVED,
BARNES GROUP INC. (together with any successors and assigns who become such in accordance herewith, the “Company”) a Delaware corporation, hereby promises to pay to
[                                        
                    ] or registered assigns the principal sum of
[                        ] [United States Dollars (U.S.
$                    )] on November 12, 2007; and to pay interest (computed on the basis of a 360-day year of twelve 30-day months)
(a) on the unpaid principal balance hereof from the date of this Note at the rate of 7.66% per annum, semi-annually on the 12th day of May and the 12th day of November in each year, commencing with the May 12 or November 12 next
succeeding the date hereof, until the principal amount hereof shall become due and payable; and to pay on demand interest on any overdue principal (including any overdue prepayment of principal) and (b) premium, if any, and (to the extent
permitted by applicable law) on any overdue payment of interest, at a fluctuating rate per annum, to be adjusted daily, equal to the greater of (i) the rate announced publicly by Citibank, N.A. in New York, New York from time to time as its
prime rate, and (ii) 9.66% per annum (but in no event higher than the maximum rate permitted by law). 
  
 Payments of principal, premium, if any, and interest shall be made in such coin or currency of the United States of America as at the time of payment is
legal tender for the payment of public and private debts, by check mailed and addressed to the registered holder hereof at the address shown in the register maintained by the Company for such purpose, or, at the option of the holder hereof, in such
manner and at such other place in the United States of America as the holder hereof shall have designated to the Company in writing. 
  
 This Note is one of an issue of 7.66% Senior Notes (herein called the “Notes”) of the Company issued in an aggregate principal amount
limited to U.S. $24,500,000 pursuant to the Note Agreement dated as of November 12, 1999 by and between 3031786 Nova Scotia Company and the Purchasers listed on Schedule A thereto (as said Note Agreement has been amended pursuant to the
Assumption and Amendment Agreement, dated as of August 26, 2005, and as may be further amended, modified or supplemented, the “Amended Note Agreement”), and is entitled to the benefits thereof. As provided in the Amended Note
Agreement, this Note is subject to prepayment, in whole or in part, with a premium as specified in said Amended Note Agreement. Each holder of this Note will be deemed, by its acceptance hereof, to have made the representation set forth in
Section 1.3 of the Amended Note Agreement. 
  

 Exhibit B-1-1 

 This Note is a registered Note and, as provided in the Amended Note Agreement, is transferable only by
surrender thereof at the principal office of the Company in Bristol, Connecticut, duly endorsed or accompanied by a written instrument of transfer duly executed by the registered holder of this Note or his attorney duly authorized in writing. Prior
to due presentment for registration of transfer, the Company may treat the person in whose name this Note is registered as the owner thereof for the purpose of receiving payment and for all other purposes, and the Company will not be affected by any
notice to the contrary. 
  
 Under certain circumstances, as
specified in said Amended Note Agreement, the principal of this Note may be declared due and payable in the manner and with the effect provided in said Amended Note Agreement. 
  
 This Note and the Amended Note Agreement are governed by and construed in accordance with Connecticut law. 
  

			
	BARNES GROUP INC.
		
	By:	 	 
	 Name:
	 	 
	 Title:
	 	 
		
	By:	 	 
	 Name:
	 	 
	 Title:
	 	 

  

 Exhibit B-1-2 

  
 EXHIBIT B-2 

 
 [FORM OF AMENDED AND RESTATED 7.80% SENIOR NOTE] 
  
 BARNES GROUP INC. 
  
 7.80% Amended and Restated Senior Note due November 12, 2010

  

			
	 U.S. $______________
	  	Hartford, Connecticut
	 PPN: 067806 E@ 4
	  	[Date]

  
 FOR VALUE RECEIVED,
BARNES GROUP INC. (together with any successors and assigns who become such in accordance herewith, the “Company”) a Delaware corporation, hereby promises to pay to
[                                        
                    ] or registered assigns the principal sum of
[                        ] [United States Dollars (U.S.
$                    )] on November 12, 2010; and to pay interest (computed on the basis of a 360-day year of twelve 30-day months)
(a) on the unpaid principal balance hereof from the date of this Note at the rate of 7.80% per annum, semi-annually on the 12th day of May and the 12th day of November in each year, commencing with the May 12 or November 12 next
succeeding the date hereof, until the principal amount hereof shall become due and payable; and to pay on demand interest on any overdue principal (including any overdue prepayment of principal) and (b) premium, if any, and (to the extent
permitted by applicable law) on any overdue payment of interest, at a fluctuating rate per annum, to be adjusted daily, equal to the greater of (i) the rate announced publicly by Citibank, N.A. in New York, New York from time to time as its
prime rate, and (ii) 9.80% per annum (but in no event higher than the maximum rate permitted by law). In addition to paying the entire remaining principal amount at maturity, the Company shall prepay, and there shall become due and
payable, $U.S. 15,166,666.67 principal amount of the Notes on November 12, 2008 and on November 12, 2009. 
  
 Payments of principal, premium, if any, and interest shall be made in such coin or currency of the United States of America as at the time of payment is
legal tender for the payment of public and private debts, by check mailed and addressed to the registered holder hereof at the address shown in the register maintained by the Company for such purpose, or, at the option of the holder hereof, in such
manner and at such other place in the United States of America as the holder hereof shall have designated to the Company in writing. 
  
 This Note is one of an issue of 7.80% Senior Notes (herein called the “Notes”) of the Company issued in an aggregate principal amount
limited to U.S. $45,500,000 pursuant to the Note Agreement dated as of November 12, 1999 by and between 3031786 Nova Scotia Company and the Purchasers listed on Schedule A thereto (as said Note Agreement has been amended pursuant to the
Assumption and Amendment Agreement, dated as of August 26, 2005, and as may be further amended, modified or supplemented, the “Amended Note Agreement”), and is entitled to the benefits thereof. As provided in the Amended Note
Agreement, this Note is subject to prepayment, in whole or in part, with a premium as specified in said Amended Note 

  

 Exhibit B-2-1 

 
Agreement. Each holder of this Note will be deemed, by its acceptance hereof, to have made the representation set forth in Section 1.3 of the Amended
Note Agreement. 
  
 This Note is a registered Note and, as
provided in the Amended Note Agreement, is transferable only by surrender thereof at the principal office of the Company in Bristol, Connecticut, duly endorsed or accompanied by a written instrument of transfer duly executed by the registered holder
of this Note or his attorney duly authorized in writing. Prior to due presentment for registration of transfer, the Company may treat the person in whose name this Note is registered as the owner thereof for the purpose of receiving payment and for
all other purposes, and the Company will not be affected by any notice to the contrary. 
  
 Under certain circumstances, as specified in said Amended Note Agreement, the principal of this Note may be declared due and payable in the manner and with the effect provided in said Amended Note Agreement.

  
 This Note and the Amended Note Agreement are governed by and
construed in accordance with Connecticut law. 
  

			
	BARNES GROUP INC.
		
	By:	 	 
	 Name:
	 	 
	 Title:
	 	 
		
	By:	 	 
	 Name:
	 	 
	 Title:
	 	 

  

 Exhibit B-2-2 

  
 EXHIBIT 3.5 

 
 FORM OF OPINION OF GENERAL COUNSEL FOR BARNES AND 3031786

  

 Exhibit 3.5-1

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