Document:

EX-10.1

AMENDMENT TO

PURCHASE AND CONTRIBUTION AGREEMENT

AMENDMENT TO PURCHASE AND CONTRIBUTION AGREEMENT (this “Amendment”) dated as of
June 29, 2006, among Ferro Corporation, an Ohio corporation, and Ferro Electronic Materials Inc., a
Delaware corporation (collectively, the “Sellers”) and Ferro Finance Corporation, an Ohio
corporation (the “Purchaser”).

PRELIMINARY STATEMENTS.

(A) The Sellers and the Purchaser entered into a Purchase and Contribution Agreement dated as
of September 28, 2000, as heretofore amended (the “PCA”). Capitalized terms not defined
herein are used as defined in the PCA.

(B) The parties hereto desire to amend certain provisions of the PCA.

NOW, THEREFORE, the parties hereto hereby agree as follows:

SECTION 1. Amendments to PCA. Upon effectiveness of this Amendment, as provided in
Section 2 below:

(a) The PCA shall be amended to incorporate the changes shown on the marked pages attached
hereto as Exhibit A.

(b) The exhibits to the PCA shall be amended by adding thereto new Exhibits F and G in the
forms set forth in Exhibit F and Exhibit G to this Amendment respectively,
immediately after Exhibit E-2 to the PCA.

SECTION 2. Effectiveness. This Amendment shall become effective at such time that
executed counterparts of this Amendment and the Confirmation of Undertaking Agreement attached
hereto have been delivered by each party hereto to the other parties hereto and Citicorp North
America, Inc., as Agent, has executed and delivered the consent on the signature page hereto.

SECTION 3. Covenants. Notwithstanding anything to the contrary in the PCA, as amended
hereby, including, without limitation, Section 2.06 thereof, each of the Sellers and the Purchaser
hereby agree that, commencing on the date hereof, all transfers of Receivables by Ferro Corporation
to the Purchaser under the PCA shall be effected by the contribution of such Receivables by Ferro
Corporation to the Purchaser until such time as the Tangible Net Worth is equal to at least 10.0%
of the Outstanding Balance of the Transferred Receivables.

SECTION 4. Representations and Warranties. Each Seller makes, as to itself, each of
the representations and warranties contained in Section 4.01 of the PCA (after giving effect to
this Amendment), and for the purpose of making such representations and warranties, each reference
in Section 4.01 of the PCA to “the Agreement” shall include this Amendment.

SECTION 5. Confirmation of PCA. Each reference in the PCA to “this Agreement” or “the
Agreement” shall mean the PCA as amended by this Amendment, and as hereafter amended or restated.
Except as herein expressly amended, the PCA is ratified and confirmed in all respects and shall
remain in full force and effect in accordance with its terms.

SECTION 6. Execution in Counterparts. This Amendment may be executed in any number of
counterparts and by different parties hereto in separate counterparts, each of which when so
executed and delivered shall be deemed to be an original and all of which taken together shall
constitute one and the same agreement. Delivery of an executed counterpart of a signature page to
this Amendment by telecopier shall be effective as delivery of a manually executed counterpart of
this Amendment.

SECTION 7. GOVERNING LAW. THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK (WITHOUT GIVING EFFECT TO THE CONFLICTS OF LAW
PRINCIPLES THEREOF).

[Remainder of this page intentionally left blank]

1

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

	 	 	 
	SELLER:

	 	FERRO CORPORATION

By:
	
 
	 	 
	
 
	 	Rhonda S. Ferguson

Assistant Secretary
	 
	 	 
	SELLER:

	 	FERRO ELECTRONIC MATERIALS INC.

By:
	
 
	 	 
	
 
	 	Rhonda S. Ferguson

Assistant Secretary
	 
	 	 
	PURCHASER:

	 	FERRO FINANCE CORPORATION

By:
	
 
	 	 
	
 
	 	Rhonda S. Ferguson

Secretary
	 
	 	 
	Pursuant to Section 5.01(m) of the Sale Agreement, Citicorp

	 
	 	 
	North America, Inc., as Agent under the Sale Agreement,

	 
	 	 
	consents to the foregoing Amendment to Purchase and

	 
	 	 
	Contribution Agreement.

	 	

	 
	 	 
	CITICORP NORTH AMERICA, INC., as Agent

	 
	 	 
	By:

	 	

	 

	 	

	Name: Junette M. Earl

Title: Vice President

	 	

2

EXHIBIT A

Conformed Copy

Incorporating Amendments

Through June 30, 2005

PURCHASE AND CONTRIBUTION AGREEMENT

Dated as of September 28, 2000

Between

FERRO CORPORATION

and

FERRO ELECTRONIC MATERIALS , INC.

as Sellers

and

FERRO FINANCE CORPORATION

as Purchaser

3

TABLE OF CONTENTS

Page

	 	 	 	 	 	 	 	 	 	 	 	 	 
	pRELIMINARY PRELIMINARY STATEMENTS
	 	 	1	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE I
	 	DEFINITIONS
	 	 	1	 	 	 	 	 
	 
	 	SECTION 1.01.Certain Defined Terms
	 	 	1	 	 	 	 	 
	 
	 	SECTION 1.02.Other Terms
	 	 	1311	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	ARTICLE II
	 	AMOUNTS AND TERMS OF PURCHASES AND CONTRIBUTIONS 13 ANDCONTRIBUTIONS
	 	 	 	 	 	 	12	 
	 	 	 
	 	 	 	 
	 
	 	SECTION 2.01.Facility
	 	 	1312	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	SECTION 2.02.Making Purchases
	 	 	1312	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	SECTION 2.03.Collections.
	 	 	1413	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	SECTION 2.04.Settlement Procedures
	 	 	1514	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	SECTION 2.05.Payments and Computations, Etc 16.
	 	 	15	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	SECTION 2.06.Contributions
	 	 	1715	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	ARTICLE III
	 	CONDITIONS OF PURCHASES
	 	 	1716	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 

	 	 	 	SECTION 3.01. Conditions Precedent to Initial Purchase from the Sellers 17
16

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	SECTION 3.02.	 	Conditions Precedent to All Purchases	 	1817
	ARTICLE IV	 	REPRESENTATIONS AND WARRANTIES	 	2018
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	SECTION 4.01.
	 	Representations and Warranties of the Sellers
	 	 	2018	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	ARTICLE V
	 	COVENANTS
	 	 	 	 	 	 	2322	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	SECTION 5.01.
	 	Covenants of the Sellers
	 	 	2322	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	SECTION 5.02.
	 	Grant of Security Interest
	 	 	2826	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	SECTION 5.03.
	 	Covenant of each Seller andthe and the Purchaser
	 	 	2826	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	ARTICLE VI	 	ADMINISTRATION AND COLLECTION
	 	 	2927	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	SECTION 6.01.
	 	Designation of Collection Agent 29 CollectionAgent27
	 	 	 	 
	 	 	 	 	 	 	 

	 
	 	SECTION 6.02.
	 	Duties of Collection Agent
	 	 	2928	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	SECTION 6.03.
	 	Collection Agent Fee
	 	 	3129	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	SECTION 6.04.
	 	Certain Rights of the Purchaser 31 thePurchaser
	 	 	29	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	SECTION 6.05.
	 	Rights and Remedies
	 	 	.3230	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	SECTION 6.06.
	 	Transfer of Records to Purchaser. 33 toPurchaser.
	 	 	31	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	ARTICLE VII
	 	EVENTS OF TERMINATION
	 	 	 	 	 	 	3432	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	SECTION 7.01.
	 	Events of Termination
	 	 	3432	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	ARTICLE VIII
	 	INDEMNIFICATION
	 	 	 	 	 	 	3735	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	SECTION 8.01.
	 	Indemnities by the Sellers
	 	 	3735	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	ARTICLE IX
	 	MISCELLANEOUS
	 	 	 	 	 	 	3937	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	SECTION 9.01.
	 	Amendments, Etc 39.
	 	 	37	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	SECTION 9.02.
	 	Notices, Etc 40.
	 	 	37	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	SECTION 9.03.
	 	Binding Effect; Assignability
	 	 	4038	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	SECTION 9.04.
	 	Costs, Expenses and Taxes
	 	 	4138	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	SECTION 9.05.
	 	No Proceedings
	 	 	4139	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	SECTION 9.06.
	 	Confidentiality
	 	 	4139	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	SECTION 9.07.
	 	GOVERNING LAW
	 	 	4239	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	SECTION 9.08.
	 	Third Party Beneficiary
	 	 	4239	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	SECTION 9.09.
	 	Execution in Counterparts
	 	 	4240	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 

EXHIBITS

	 	 	 
	EXHIBIT A

EXHIBIT B

EXHIBIT C

EXHIBIT D

EXHIBIT E-1

EXHIBIT E-2

EXHIBIT F

	 	Credit and Collection Policy

Lock-Box Banks

Form of Promissory Note for Deferred Purchase Price

Form of Promissory Note for Purchaser Loans

Approved OECD Countries

Other Approved Jurisdictions

Seller UCC Information
	 

	 	 
	EXHIBIT G

	 	Form of Ferro Electronic Order and Acknowledgment
	 

	 	 

4

PURCHASE AND CONTRIBUTION AGREEMENT

Dated as of September 28, 2000

FERRO CORPORATION, an Ohio corporation (“Ferro Corporation”), and FERRO ELECTRONIC
MATERIALS , INC., a Delaware corporation (“Ferro Electronic”) (Ferro Corporation and Ferro
Electronic being hereinafter sometimes referred to as the “Sellers”), and FERRO FINANCE
CORPORATION, an Ohio corporation (the “Purchaser”), agree as follows:

PRELIMINARY STATEMENTS. (1) Certain terms which are capitalized and used throughout this
Agreement (in addition to those defined above) are defined in Article I of this Agreement.

(2) The Sellers have Receivables that they wish to sell to the Purchaser, and the Purchaser is
prepared to purchase such Receivables on the terms set forth herein.

(3) The Sellers may also wish to contribute Receivables to the capital of the Purchaser on the
terms set forth herein.

NOW, THEREFORE, the parties agree as follows:

ARTICLE I

DEFINITIONS

SECTION 1.01. Certain Defined Terms. As used in this Agreement, the following terms
shall have the following meanings (such meanings to be equally applicable to both the singular and
plural forms of the terms defined):

“2005 Downgrade Event” means the BB Downgrade Event which occurred on June 2, 2005,
as a result of the downgrade to BB by S&P of Ferro Corporation’s long term public senior
unsecured non-credit-enhanced debt securities.

“2006 Downgrade Events” means (i) the BB Downgrade Event which occurred on
March 20, 2006, as a result of Moody’s downgrading the long term public senior unsecured
non-credit-enhanced debt securities of Ferro Corporation to B1 and then withdrawing its
rating on such debt securities, and (ii) the further downgrading by S&P on March 31, 2006 of
the long term public senior unsecured non-credit-enhanced debt securities of Ferro
Corporation to B.

“Adverse Claim” means a lien, security interest, or other charge or
encumbrance, or any other type of preferential arrangement.

“Affiliate” means, as to any Person, any other Person that, directly or
indirectly, is in control of, is controlled by or is under common control with such Person
or is a director or officer of such Person.

“Agent” means Citicorp North America, Inc., in its capacity as agent under the
Sale Agreement or any successor agent thereunder.

“Alternate Base Rate” means a fluctuating interest rate per annum as shall be
in effect from time to time, which rate shall be at all times equal to the highest of:

(a) the rate of interest announced publicly by Citibank, N.A. in New York, New
York, from time to time as Citibank, N.A.’s N.A.’s base rate;

(b) 1/2 of one percent above the latest three-week moving average of secondary
market morning offering rates in the United States for three-month certificates of
deposit of major United States money market banks, such three-week moving average
being determined weekly on each Monday (or, if such day is not a Business Day, on
the next succeeding Business Day) for the three-week period ending on the previous
Friday by Citibank, N.A. on the basis of such rates reported by certificate of
deposit dealers to and published by the Federal Reserve Bank of New York or, if such
publication shall be suspended or terminated, on the basis of quotations for such
rates received by Citibank, N.A. from three New York certificate of deposit dealers
of recognized standing selected by Citibank, N.A., in either case adjusted to the
nearest 1/4 of one percent or, if there is no nearest 1/4 of one percent, to the
next higher 1/4 of one percent; or

(c) the Federal Funds Rate.

“APC Receivable” means any receivable created or originated by the Advance
Polymer Compounding Division of Ferro Corporation.

“Approved OECD Country” means each of the countries listed on Exhibit E-1
hereto, as such Exhibit may be amended from time to time upon request of Ferro Corporation,
with the prior written approval of the Purchaser and the Agent. Additionally, if the Agent
removes any country from the Schedule of Approved OECD Countries attached to the Sale
Agreement, such country will cease to be an Approved OECD Country hereunder and the
Purchaser will immediately notify Ferro Corporation thereof.

“BB Downgrade Event” means any of the long term public senior unsecured
non-credit-enhanced debt securities of Ferro Corporation are rated below BB+ by S&P or Ba1
by Moody’s, or if Ferro Corporation does not have long term public senior unsecured
non-credit-enhanced debt ratings from both S&P and Moody’s, Ferro Corporation is judged by
the Agent, in its sole discretion, to be of credit quality below (with respect to each
missing rating) BB+ by S&P or Ba1 by Moody’s.

“Business Day” means any day on which banks are not authorized or required to
close in New York, New York or Cleveland, Ohio.

“Collection Agent” means at any time the Person then authorized pursuant to
Section 6.01 to service, administer and collect Transferred Receivables.

“Collection Agent Fee” has the meaning specified in Section 6.03.

“Collections” means, with respect to any Receivable, all cash collections and
other cash proceeds of such Receivable, including, without limitation, all cash proceeds of
Related Security with respect to such Receivable, and all funds deemed to have been
received by the Seller or any other Person as a Collection pursuant to Section 2.04.

“Contract” means an agreement between a Seller and an Obligor, substantially in
the form of one of the written contracts or (in the case of any open account agreement) one
of the invoices approved by the Purchaser, pursuant to or under which such Obligor shall be
obligated to pay for merchandise, insurance or services from time to time.

“Contributed Receivable” has the meaning specified in Section 2.06.

“Credit and Collection Policy” means those receivables credit and collection
policies and practices of each Seller in effect on the date of this Agreement applicable to
the Receivables and described in Exhibit A hereto, as modified in compliance with this
Agreement.

“Daily Report” means a report in form and substance satisfactory to the
Purchaser, furnished by the Collection Agent to the Purchaser pursuant to the third sentence
of Section 6.02(b).

“Debt” means (i) indebtedness for borrowed money, (ii) obligations evidenced by
bonds, debentures, notes or other similar instruments, (iii) obligations to pay the deferred
purchase price of property or services, (iv) obligations as lessee under leases which shall
have been or should be, in accordance with generally accepted accounting principles,
recorded as capital leases, and (v) obligations under direct or indirect guaranties in
respect of, and obligations (contingent or otherwise) to purchase or otherwise acquire, or
otherwise to assure a creditor against loss in respect of, indebtedness or obligations of
others of the kinds referred to in clauses (i) through (iv) above.

“Defaulted Receivable” means a Receivable:

(i) as to which any payment, or part thereof, remains unpaid for 90 days or
more from the original due date for such payment;

(ii) as to which the Obligor thereof or any other Person obligated thereon or
owning any Related Security in respect thereof has taken any action, or suffered any
event to occur, of the type described in Section 7.01(g); or

(iii) which, consistent with the Credit and Collection Policy, would be written
off as uncollectible.

“Deferred Purchase Price” means the portion of the Purchase Price of Purchased
Receivables purchased on any Purchase Date exceeding the amount of the Purchase Price under
Section 2.02 to be paid in cash, which portion when added to the cumulative amount of all
previous Deferred Purchase Prices (after giving effect to any payments made on account
thereof) shall not exceed 32.0% of the Outstanding Balance of the Transferred Receivables.
The obligations of the Purchaser in respect of the Deferred Purchase Price shall be
evidenced by the Purchaser’s Purchaser’s subordinated promissory note in the form of
Exhibit C hereto.

“Designated Obligor” means, at any time, each Obligor; provided,
however, that any Obligor shall cease to be a Designated Obligor upon three Business
Days’ Days’ notice by the Purchaser to the relevant Seller.

“Dilution” means, with respect to any Receivable, the aggregate amount of any
reductions or adjustments in the Outstanding Balance of such Receivable as a result of any
defective, rejected, returned, repossessed or foreclosed merchandise or services or any cash
discount, discount for quick payment or other adjustment or setoff.

“Discount” means, in respect of each Purchase, 2.5% of the Outstanding Balance
of the Receivables that are the subject of such Purchase; provided, however, the foregoing
Discount may be revised prospectively by request of the relevant Seller or the Purchaser to
reflect changes in recent experience with respect to write-offs, timing and cost of
Collections and cost of funds, provided that such revision is consented to by both of such
parties (it being understood that each party agrees to duly consider such request but shall
have no obligation to give such consent).

“Eligible Receivable” means a Receivable:

(i) the Obligor of which is a resident of the United States (including, without
limitation, Puerto Rico), Canada, an Approved OECD Country or an Other Approved
Jurisdiction, provided that (A) the aggregate Outstanding Balance of all
Eligible Receivables having Obligors which are residents of an Approved OECD Country
or an Other Approved Jurisdiction may not exceed 20% of the then outstanding Capital
under the Sale Agreement, (B) the aggregate Outstanding Balance of all Eligible
Receivables having Obligors which are residents of an Other Approved Jurisdiction
may not exceed 10% of the then outstanding Capital under the Sale Agreement and
(C) with respect to each country which is an Other Approved Jurisdiction, the
aggregate Outstanding Balance of all Eligible Receivables having Obligors which are
residents of such country may not exceed (1) 5% of the then outstanding Capital
under the Sale Agreement, at any time that the sovereign long-term debt rating of
such country is at least A by S&P and at least A2 by Moody’s, and (2) 3.3% of the
then outstanding Capital under the Sale Agreement, at any time that the sovereign
long-term debt rating of such country is not at least A by S&P and at least A2 by
Moody’s;

(ii) the Obligor of which is not an Affiliate of any of the parties hereto and
is not a government or a governmental subdivision or agency;

(iii) the Obligor of which, at the time of the transfer of such Receivable
under this Agreement, is a Designated Obligor and is not the Obligor of any
Defaulted Receivables which in the aggregate constitute 10% or more of the aggregate
Outstanding Balance of all Receivables of such Obligor;

(iv) which, at the time of the transfer thereof to the Purchaser under this
Agreement, is not a Defaulted Receivable;

(v) which, according to the Contract related thereto, is required to be paid in
full either (A) within not more than 30 days of the original billing date
therefor or (B) within more than 30 but no more than 90 days of the original billing
date therefor if the aggregate Outstanding Balance of such Receivable and all other
Receivables having similar payments terms does not exceed 25% of the then
outstanding Capital under the Sale Agreement; Outstanding Balance of all
Transferred Receivables at such time;

(vi) which is an obligation representing all or part of the sales price of
merchandise, insurance or services within the meaning of Section 3(c)(5) of the
Investment Company Act of 1940, as amended, and the nature of which is such that its
purchase with the proceeds of notes would constitute a “current transaction” within
the meaning of Section 3(a)(3) of the Securities Act of 1933, as amended;

(vii) which is an “account” within the meaning of Article 9 of the UCC of the
applicable jurisdictions;

(viii) which is denominated and payable only in United States dollars in the
United States;

(ix) which arises under a Contract which, together with such Receivable, is in
full force and effect and constitutes the legal, valid and binding obligation of the
Obligor of such Receivable and is not subject to any Adverse Claim or any
dispute, offset, counterclaim or defense whatsoever (except the potential discharge
in bankruptcy of such Obligor);

(x) which, together with the Contract related thereto, does not contravene in
any material respect any laws, rules or regulations applicable thereto (including,
without limitation, laws, rules and regulations relating to usury, consumer
protection, truth in lending, fair credit billing, fair credit reporting, equal
credit opportunity, fair debt collection practices and privacy) and with respect to
which no party to the Contract related thereto is in violation of any such law, rule
or regulation in any material respect;

(xi) which arises under a Contract which (A) does not require the Obligor under
such Contract to consent to the transfer, sale or assignment of the rights and
duties of the relevant Seller under such Contract and (B) does not contain a
confidentiality provision that purports to restrict the ability of the Purchaser and
its assignees to exercise their rights under this Agreement, including, without
limitation, their right to review the Contract;

(xii) which was generated in the ordinary course of the relevant Seller’s
business;

(xiii) which, at the time of the transfer of such Receivable under this
Agreement, has not been extended, rewritten or otherwise modified from the original
terms thereof;

(xiv) the transfer, sale or assignment of which does not contravene any
applicable law, rule or regulation; and

(xv) which (A) satisfies all applicable requirements of the Credit and
Collection Policy and (B) complies with such other criteria and requirements (other
than those relating to the collectibility of such Receivable) as the Purchaser or
its designee may from time to time specify to the Sellers upon 30 days’
days’ notice.

“ERISA” means the Employee Retirement Income Security Act of 1974, as amended
from time to time, and the regulations promulgated and rulings issued thereunder.

“Event of Termination” has the meaning specified in Section 7.01.

“Facility” means the willingness of the Purchaser to consider making Purchases
of Receivables from the Seller from time to time pursuant to the terms of this Agreement.

“Facility Termination Date” means the earliest of (i) the “Facility Termination
Date” (as such term is defined in the Sale Agreement), (ii) the date of termination of the
Facility pursuant to Section 7.01 and (iii) the date which the Sellers designate by at least
two Business Days’ Days’ notice to the Purchaser.

“Federal Funds Rate” means, for any period, a fluctuating interest rate per
annum equal for each day during such period to the weighted average of the rates on
overnight Federal funds transactions with members of the Federal Reserve System arranged by
Federal funds brokers, as published for such day (or, if such day is not a Business Day, for
the next preceding Business Day) by the Federal Reserve Bank of New York, or, if such rate
is not so published for any day which is a Business Day, the average of the quotations for
such day on such transactions received by Citibank, N.A. from three Federal funds brokers of
recognized standing selected by it.

“General Trial Balance” of either Seller on any date means such Seller’s
Seller’s accounts receivable trial balance (whether in the form of a computer
printout, magnetic tape or diskette) on such date, listing Obligors and the Receivables
respectively owed by such Obligors on such date together with the aged Outstanding Balances
of such Receivables, in form and substance satisfactory to the Purchaser.

“Incipient Event of Termination” means an event that but for notice or lapse of
time or both would constitute an Event of Termination.

“Indemnified Amounts” has the meaning specified in Section 8.01.

“Lock-Box Account” means one or more accounts, under the exclusive ownership
and control of the Purchaser (or its assignees or designees), maintained for the purpose of
receiving Collections.

“Lock-Box Agreement” means an agreement among a Seller, the Purchaser (or its
assignees or designees) and any Lock-Box Bank in form and substance satisfactory to the
Purchaser (or its assignees or designees).

“Lock-Box Bank” means any of the banks or other financial institutions holding
one or more Lock-Box Accounts.

“Monthly Report” means a report in form and substance satisfactory to the
Purchaser, furnished by the Collection Agent to the Purchaser pursuant to the first sentence
of Section 6.02(b).

“Moody’s” means Moody’s Investors Service, Inc.

“Non-Investment Grade Event” means any of the long term public senior unsecured
non-credit-enhanced debt securities of Ferro Corporation are rated below BBB- by S&P or Baa3
by Moody’s, or if Ferro Corporation does not have long term public senior unsecured
non-credit-enhanced debt ratings from both S&P and Moody’s, Ferro Corporation is judged by
the Agent, in its sole discretion, to be of credit quality below (with respect to each
missing rating) BBB- by S&P or Baa3 by Moody’s.

“Obligor” means a Person obligated to make payments to a Seller pursuant to a
Contract.

“Other Approved Jurisdiction” means each of the countries listed on Exhibit E-2
hereto, as such Exhibit may be amended from time to time upon request of Ferro Corporation,
with prior written approval of the Purchaser and the Agent; provided,
however, that at any time that the sovereign long-term debt rating of any country
listed on such Exhibit falls below A- by S&P or below A3 by Moody’s, such country will cease
to be an Other Approved Jurisdiction. Additionally, if the Agent at any time removes any
country from the Schedule of Other Approved Jurisdictions attached to the Sale Agreement,
such country will cease to be an Other Approved Jurisdiction hereunder and the Purchaser
will immediately notify Ferro Corporation thereof.

“Outstanding Balance” of any Receivable at any time means the then outstanding
principal balance thereof.

“Person” means an individual, partnership, corporation (including a business
trust), limited liability company, joint stock company, trust, unincorporated association,
joint venture or other entity, or a government or any political subdivision or agency
thereof.

“Petroleum Additive Business” means the petroleum additive business of Ferro Corporation located in
Hammond, Indiana and the invoices generated thereby which are identified by a seven-digit invoice
number beginning with the number 65.

“Powder Coating Division” means the powder coating manufacturing facilities of Ferro Corporation
located in Nashville, Tennessee and Brecksville, Ohio.

“Purchase” means a purchase by the Purchaser of Receivables from the Seller
pursuant to Article II.

“Purchase Date” means each day on which a Purchase is made pursuant to Article
II.

“Purchased Receivable” means any Receivable which is purchased by the Purchaser
pursuant to Section 2.02.

“Purchase Price” for any Purchase means an amount equal to the Outstanding
Balance of the Receivables that are the subject of such Purchase as set forth in the
relevant Seller’s General Trial Balance, minus the Discount for such Purchase.

“Purchaser Loan” means any loan made by the Purchaser, at its option, to a
Seller, upon such Seller’s request, provided that (a) the aggregate principal amount at any
one time outstanding of Purchaser Loans shall not exceed $5,000,000, and (b) no such
Purchaser Loans may be made if an Event of Termination or an Incipient Event of Termination
has occurred and is continuing, or would occur after giving effect thereto, or if any
amounts are outstanding under the Deferred Purchase Price. Purchaser Loans made by the
Purchaser hereunder shall be evidenced by a promissory note of each Seller in substantially
the form of Exhibit D hereto.

“Receivable” means the indebtedness of any Obligor under a Contract
(whether constituting an account, instrument, chattel paper or general intangible),
and includes the right to payment of any interest or finance charges and other obligations
of such Obligor with respect thereto; provided, however, that “Receivable”
shall not include any APC Receivable until such time as (i) Ferro Corporation has requested,
and the Purchaser and the Agent have approved in writing, the inclusion of the APC
Receivables in the Facility and (ii) Ferro Corporation has directed all Obligors of APC
Receivables to make payments thereon to a Lock-Box or Lock-Box Account specified on Exhibit
B as to which a Lock-Box Agreement is in effect and; provided, further, that from and after
September 25, 2002, “Receivable” shall not include any such indebtedness generated by the
Powder Coating Division and; provided, further, that from and after May 28, 2003,
“Receivable” shall not include any such indebtedness generated by the Speciality Ceramics
Business and; provided, further, that from and after June 27, 2003, “Receivable” shall not
include any such indebtedness generated by the Petroleum Additive Business.

“Related Security” means with respect to any Receivable:

(i) all of the relevant Seller’s Seller’s interest in any merchandise
(including returned merchandise) relating to any sale giving rise to such
Receivable;

(ii) all security interests or liens and property subject thereto from time to
time purporting to secure payment of such Receivable, whether pursuant to the
Contract related to such Receivable or otherwise, together with all financing
statements signed by filed against an Obligor describing any collateral
securing such Receivable;

(iii) all guaranties, insurance and other agreements or arrangements of
whatever character from time to time supporting or securing payment of such
Receivable whether pursuant to the Contract related to such Receivable or otherwise;
and

(iv) the Contract and all other books, records and other information
(including, without limitation, computer programs, tapes, discs, punch cards, data
processing software and related property and rights) relating to such Receivable and
the related Obligor.

“S&P” means Standard & Poor’s Poor’s Rating Services, a division of
McGraw-Hill Companies, Inc.

“Sale Agreement” means that certain Receivables Purchase Agreement, dated as of
the date hereof September 28, 2000, among the Purchaser, as seller, CIESCO L.P., as
purchaser, Citicorp North America, Inc., as agent, Ferro Electronic, as an originator, and
Ferro Corporation, as collection agent and an originator, as amended or restated from time
to time, including by that certain Amended and Restated Receivables Purchase Agreement
dated as of June 29, 2006, which, inter alia, adds Citibank, N.A. as a party to such Sale
Agreement.

“Seller Report” means a Monthly Report, a Weekly Report or a Daily Report.

“Settlement Date” means the tenth day of each month (or if such day is not a
Business Day, the immediately succeeding Business Day); provided, however,
that following the occurrence of an Event of Termination, Settlement Dates shall occur on
such days as are selected from time to time by the Purchaser or its designee in a written
notice to the Collection Agent.

“Specialty Ceramics Business” means the speciality ceramics business of Ferro
Corporation located in (a) Crooksville, Ohio and the invoices generated thereby which are
identified by a seven-digit invoice number beginning with the number 22, and (b) Shreve,
Ohio and the invoices generated thereby which are identified by a seven-digit invoice number
beginning with the number 59.“Tangible Net Worth” means at any time the excess of (i)
the sum of (a) the product of (x) 100% minus the Discount multiplied by (y) the Outstanding
Balance of all Transferred Receivables other than Defaulted Receivables plus (b) cash and
cash equivalents of the Purchaser plus (c) the outstanding principal amount of Purchaser
Loans, minus (ii) the sum of (a) Capital (as such term is defined in the Sale Agreement)
plus (b) the Deferred Purchase Price.

“Transferred Receivable” means a Purchased Receivable or a Contributed
Receivable.

“UCC” means the Uniform Commercial Code as from time to time in effect in the
specified jurisdiction.

“Undertaking Agreement” means the Undertaking Agreement dated as of the date of
this Agreement made by Ferro Corporation in favor of the Purchaser, relating to the
Obligations of Ferro Electronic hereunder, as the same may be amended, modified or restated
from time to time.

“Week” means each calendar week beginning on Saturday and ending on (and
including) the following Friday.

“Weekly Report” means a report in form and substance satisfactory to
the Purchaser, furnished by the Collection Agent to the Purchaser pursuant to the
second sentence of Section 6.02(b).

SECTION 1.02. Other Terms. All accounting terms not specifically defined herein
shall be construed in accordance with generally accepted accounting principles. All terms used in
Article 9 of the UCC in the State of New York, and not specifically defined herein, are used herein
as defined in such Article 9.

ARTICLE II

AMOUNTS AND TERMS OF PURCHASES AND CONTRIBUTIONS

SECTION 2.01. Facility. On the terms and conditions hereinafter set forth and
without recourse to either Seller (except to the extent specifically provided herein), each Seller
may at its option sell or contribute to the Purchaser all Receivables originated by it from time to
time and the Purchaser may at its option purchase or accept as a contribution from Ferro
Corporation all Receivables of such Seller from time to time, in each case during the period from
the date hereof to the Facility Termination Date.

SECTION 2.02. Making Purchases.

(a) Initial Purchase. Each Seller shall give the Purchaser at least one Business
Day’s notice of its request for the initial Purchase hereunder, which request shall specify the
date of such Purchase (which shall be a Business Day) and the proposed Purchase Price for such
Purchase. The Purchaser shall promptly notify such Seller whether it has determined to make such
Purchase. On the date of such Purchase, the Purchaser shall, upon satisfaction of the applicable
conditions set forth in Article III, pay the Purchase Price for such Purchase in the manner
provided in Section 2.02(c).

(b) Subsequent Purchases. On each Business Day following the initial Purchase, unless
either Seller or the Purchaser shall notify the other parties to the contrary, each Seller shall
sell to the Purchaser and the Purchaser shall purchase from such Seller, upon satisfaction of the
applicable conditions set forth in Article III, all Receivables originated by such Seller which
have not previously been sold or contributed to the Purchaser; provided, however,
that such Seller may, at its option on any Purchase Date, contribute all or any of such Receivables
to the Purchaser pursuant to Section 2.06, instead of selling such Receivables to the Purchaser
pursuant to this Section 2.02(b). On or within five Business Days after the date of each such
Purchase, the Purchaser shall pay the Purchase Price for such Purchase in the manner provided in
Section 2.02(c).

(c) Payment of Purchase Price. The Purchase Price for each Purchase shall be paid on
or within five Business Days after the Purchase Date therefor by means of any one or a combination
of the following: (i) a deposit in same day funds to the relevant Seller’s account designated by
such Seller, (ii) an increase in the Deferred Purchase Price (subject at all times to the
limitations contained in the definition thereof), or (iii) a credit against interest and/or
principal owed by the relevant Seller with respect to any Purchaser Loan. The allocation of the
Purchase Price as among such methods of payment shall be subject in each instance to the approval
of the Purchaser and the relevant Seller; provided, however, that the Deferred Purchase Price
may not be increased to the extent that, after giving effect to such increase, the Tangible Net
Worth would be less than 10.0% of the Outstanding Balance of the Transferred Receivables.

(d) Ownership of Receivables and Related Security. On each Purchase Date, after
giving effect to the Purchase (and any contribution of Receivables) on such date, the Purchaser
shall own all Receivables originated by the Sellers as of such date (including Receivables which
have been previously sold or contributed to the Purchaser hereunder). The Purchase or contribution
of any Receivable shall include all Related Security with respect to such Receivable.

(e) Assignment of Receivables relating to Obligors located in Germany. In addition to
the transfer of ownership of Receivables stipulated above each Seller, subject to the satisfaction
of the conditions precedent set out in this Agreement hereby assigns by way of a German law
assignment (Abtretung) within the meaning of Section 398 German Civil Code (B_rgerliches
Gesetzbuch) to the Purchaser all Receivables (whether now existing or hereafter arising) owed to
the Sellers by an Obligor located in Germany (the “German Obligor Receivables”). The
Purchaser accepts such assignment. The assignment of the German Obligor Receivables shall include
all ancillary rights, priority rights as well as all other rights attached to the German Obligor
Receivables.

SECTION 2.03. Collections. (a)  Unless otherwise agreed, the Collection Agent shall,
on each Settlement Date, deposit into an account of the Purchaser or the Purchaser’s assignee all
Collections of Transferred Receivables then held by the Collection Agent.

(b) In the event that either Seller believes that Collections which are not Collections of
Transferred Receivables have been deposited into an account of the Purchaser or the Purchaser’s
assignee, such Seller shall so advise the Purchaser and, on the Business Day following such
identification, the Purchaser shall remit, or shall cause to be remitted, all Collections so
deposited which are identified, to the Purchaser’s Purchaser’s satisfaction, to be
Collections of Receivables which are not Transferred Receivables to such Seller.

(c) On each Settlement Date, the Purchaser shall pay to the Sellers accrued interest on the
Deferred Purchase Price and the Purchaser may, at its option, prepay in whole or in part the
principal amount of the Deferred Purchase Price; provided that each such payment shall be made
solely from (i) Collections of Transferred Receivables after all other amounts then due from the
Purchaser under the Sale Agreement have been paid in full and all amounts then required to be set
aside by the Purchaser or the Collection Agent under the Sale Agreement have been so set aside or
(ii) excess cash flow from operations of the Purchaser which is not required to be applied to the
payment of other obligations of the Purchaser; and provided further, that no such payment shall be
made at any time when an Event of Termination shall have occurred and be continuing. At such time
following the Facility Termination Date when all Capital, Yield and other amounts owed by the
Purchaser under the Sale Agreement shall have been paid in full, the Purchaser shall apply, on each
Settlement Date, all Collections of Transferred Receivables received by the Purchaser pursuant to
Section 2.03(a) (and not previously distributed) first to the payment of accrued interest on the
Deferred Purchase Price, and then to the reduction of the principal amount of the Deferred Purchase
Price.

SECTION 2.04. Settlement Procedures. (a)  If on any day the Outstanding Balance of
any Transferred Receivable is reduced or adjusted as a result of any defective, rejected, returned,
repossessed or foreclosed merchandise or services or any cash discount, discount for quick payment
or other adjustment made by the relevant Seller, or any set-off or dispute in respect of any claim
by the Obligor thereof against such Seller (whether such claim arises out of the same or a related
transaction or an unrelated transaction but excluding adjustments, reductions or
cancellations in respect of such Obligor’s Obligor’s bankruptcy), such Seller shall be
deemed to have received on such day a Collection of such Transferred Receivable in the amount of
such reduction or adjustment. If such Seller is not the Collection Agent, such Seller shall pay to
the Collection Agent on or prior to the next Settlement Date all amounts deemed to have been
received pursuant to this subsection.

(b) Upon discovery by either Seller or the Purchaser of a breach of any of the representations
and warranties made by a Seller in Section 4.01(j) with respect to any Transferred Receivable, such
party shall give prompt written notice thereof to the other party, as soon as practicable and in
any event within three Business Days following such discovery. Such Seller shall, upon not less
than two Business Days’ notice from the Purchaser or its assignee or designee, repurchase such
Transferred Receivable on the next succeeding Settlement Date for a repurchase price equal to the
Outstanding Balance of such Transferred Receivable. Each repurchase of a Transferred Receivable
shall include the Related Security with respect to such Transferred Receivable. The proceeds of
any such repurchase shall be deemed to be a Collection in respect of such Transferred Receivable.
If such Seller is not the Collection Agent, such Seller shall pay to the Collection Agent on or
prior to the next Settlement Date the repurchase price required to be paid pursuant to this
subsection.

(c) Except as stated in subsection (a) or (b) of this Section 2.04 or as otherwise required by
law or the underlying Contract, all Collections from an Obligor of any Transferred Receivable shall
be applied to the Receivables of such Obligor in the order of the age of such Receivables, starting
with the oldest such Receivable, unless such Obligor designates its payment for application to
specific Receivables.

SECTION 2.05. Payments and Computations, Etc. (a)  All amounts to be paid or
deposited by either Seller or the Collection Agent hereunder shall be paid or deposited no later
than 11:00 A.M. (New York City time) on the day when due in same day funds to an account or
accounts designated by the Purchaser from time to time, which accounts, during the existence of the
Sale Agreement, shall be those set forth in the Sale Agreement.

(b) Each Seller shall, to the extent permitted by law, pay to the Purchaser interest on any
amount not paid or deposited by such Seller (whether as Collection Agent or otherwise) when due
hereunder at an interest rate per annum equal to 2.0% per annum above the Alternate Base Rate,
payable on demand.

(c) All computations of interest and all computations of fees hereunder shall be made on the
basis of a year of 360 days for the actual number of days (including the first but excluding the
last day) elapsed. Whenever any payment or deposit to be made hereunder shall be due on a day
other than a Business Day, such payment or deposit shall be made on the next succeeding Business
Day and such extension of time shall be included in the computation of such payment or deposit.

SECTION 2.06. Contributions. Each Seller may from time to time at its option, by
notice to the Purchaser on or prior to the date of the proposed contribution, identify Receivables
which it proposes to contribute to the Purchaser as a capital contribution. On the date of each
such contribution and after giving effect thereto, the Purchaser shall own in fee simple the
Receivables so identified and contributed (collectively, the “Contributed Receivables”) and
all Related Security with respect thereto. The foregoing notwithstanding, on the date of the
initial Purchase hereunder each Seller agrees to contribute to the Purchaser all Receivables which
are not included in such initial Purchase.

5

ARTICLE III

CONDITIONS OF PURCHASES

SECTION 3.01. Conditions Precedent to Initial Purchase from the Sellers. The initial
Purchase of Receivables from the Sellers hereunder is subject to the conditions precedent that the
Purchaser shall have received on or before the date of such Purchase the following, each (unless
otherwise indicated) dated such date, in form and substance satisfactory to the Purchaser:

(a) Evidence that each Seller has taken any necessary corporate action to authorize
this Agreement and certified copies of all documents evidencing other necessary corporate
action and governmental approvals, if any, with respect to this Agreement.

(b) A certificate of the Secretary or Assistant            Secretary of each Seller certifying
the names and true signatures of the officers of such Seller authorized to sign this
Agreement and the other documents to be delivered by it hereunder.

(c) Acknowledgment copies or time stamped receipt copies of proper financing
statements, duly filed on or before the date of the initial Purchase, naming each Seller as
the seller/debtor and the Purchaser as the purchaser/secured party, or other similar
instruments or documents, as the Purchaser may deem necessary or desirable under the UCC of
all appropriate jurisdictions or other applicable law to perfect the Purchaser’s
Purchaser’s ownership of and security interest in the Transferred Receivables and
Related Security and Collections with respect thereto.

(d) Acknowledgment copies or time stamped receipt copies of proper financing
statements, if any, necessary to release all security interests and other rights of any
Person in the Transferred Receivables, Contracts or Related Security previously granted by
each Seller.

(e) Completed requests for information, dated on or before the date of such initial
Purchase, listing all effective financing statements filed in the jurisdictions referred to
in subsection (c) above that name either Seller as debtor, together with copies of such
other financing statements (none of which shall cover any Transferred Receivables, Contracts
or Related Security).

(f) A favorable opinion of Squire, Sanders & Dempsey L.L.P., counsel for the Sellers,
in form and substance satisfactory to the Purchaser, as to such matters as the Purchaser may
reasonably request.

(g) The Undertaking Agreement, duly executed by Ferro Corporation.

(h) Lock-Box Agreements in respect of each Lock-Box Account, duly executed by the
relevant Seller and the Lock-Box Bank holding such Lock-Box Account.

SECTION 3.02. Conditions Precedent to All Purchases. Each Purchase (including
the initial Purchase) hereunder shall be subject to the further conditions precedent that:

(a) with respect to any such Purchase, on or prior to the date of such Purchase, the
relevant Seller shall have delivered to the Purchaser, (i) if requested by the Purchaser,
such Seller’s General Trial Balance (which if in magnetic tape or diskette format shall be
compatible with the Purchaser’s computer equipment) as of a date not more than 31 days prior
to the date of such Purchase, and (ii) a written report identifying, among other things, the
Receivables to be included in such Purchase and such additional information concerning such
Receivables as may reasonably be requested by the Purchaser;

(b) with respect to any such Purchase, on or prior to the date of such Purchase, the
Collection Agent shall have delivered to the Purchaser, in form and substance satisfactory
to the Purchaser, a completed Monthly Report, Weekly Report or Daily Report for the most
recently ended reporting period for which information is required pursuant to Section
6.02(b), and containing such additional information as may reasonably be requested by the
Purchaser;

(c) The relevant Seller shall have marked its master data processing records and, at
the request of the Purchaser, each Contract giving rise to Purchased Receivables and all
other relevant records evidencing the Receivables which are the subject of such Purchase
with a legend, acceptable to the Purchaser, stating that such Receivables, the Related
Security and Collections with respect thereto, have been sold in accordance with this
Agreement; and

(d) on the date of such Purchase the following statements shall be true (and the
relevant Seller, by accepting the amount of such Purchase, shall be deemed to have certified
that):

(i) The representations and warranties contained in Section 4.01 are correct on
and as of the date of such Purchase as though made on and as of such date,

(ii) No event has occurred and is continuing, or would result from such
Purchase, that constitutes an Event of Termination or would constitute an Incipient
Event of Termination and

(iii) The Purchaser shall not have delivered to such Seller a notice that the
Purchaser shall not make any further Purchases hereunder; and

(e) the Purchaser shall have received such other approvals, opinions or documents as
the Purchaser may reasonably request.

ARTICLE IV

REPRESENTATIONS AND WARRANTIES

SECTION 4.01. Representations and Warranties of the Sellers. Each Seller represents
and warrants, as to itself, as follows:

(a) Such Seller is a corporation duly incorporated, validly existing and in good
standing, with respect to Ferro Corporation, under the laws of Ohio, and, with respect to
Ferro Electronic, under the laws of Delaware, in each case under the laws of the
applicable jurisdiction set forth in Exhibit F hereto (as such Exhibit F may be amended from
time to time pursuant to Section 5.01(b)) and is duly qualified to do business, and is
in good standing, in every jurisdiction where the nature of its business requires it to be
so qualified, unless the failure to so qualify would not have a material adverse effect on
(i) the interests of the Purchaser hereunder, (ii) the collectibility of the Transferred
Receivables, or (iii) the ability of the Seller or the Collection Agent to perform their
respective obligations hereunder.

(b) The execution, delivery and performance by such Seller of this Agreement and the
other documents to be delivered by it hereunder, including such Seller’s Seller’s
sale and contribution of Receivables hereunder and such Seller’s Seller’s use of the
proceeds of Purchases, (i) are within such Seller’s Seller’s corporate powers,
(ii) have been duly authorized by all necessary corporate action, (iii) do not contravene
(1) such Seller’s Seller’s charter or by-laws, (2) any law, rule or regulation
applicable to such Seller, (3) any contractual restriction binding on or affecting such
Seller or its property or (4) any order, writ, judgment, award, injunction or decree binding
on or affecting such Seller or its property, and (iv) do not result in or require the
creation of any lien, security interest or other charge or encumbrance upon or with respect
to any of its properties (except for the transfer of such Seller’s Seller’s interest
in the Transferred Receivables pursuant to this Agreement). This Agreement has been duly
executed and delivered by such Seller.

(c) No authorization or approval or other action by, and no notice to or filing with,
any governmental authority or regulatory body is required for the due execution, delivery
and performance by such Seller of this Agreement or any other document to be delivered by it
hereunder.

(d) This Agreement constitutes the legal, valid and binding obligation of such Seller
enforceable against such Seller in accordance with its terms.

(e) Sales and contributions made pursuant to this Agreement will constitute a valid
sale, transfer, and assignment of the Transferred Receivables to Purchaser, enforceable
against creditors of, and purchasers from, such Seller. Such Seller shall have no remaining
property interest in any Transferred Receivable.

(f) The balance sheets of Ferro Corporation and its subsidiaries as at December 31,
1999 2004, and the related statements of income and retained earnings of Ferro
Corporation and its subsidiaries for the fiscal year then ended, copies of which have been
furnished to the Purchaser, fairly present the financial condition of Ferro Corporation and
its subsidiaries as at such date and the results of the operations of Ferro Corporation and
its subsidiaries for the period ended on such date, all in accordance with generally
accepted accounting principles consistently applied, and since December 31, 1999
2004 there has been no material adverse change in the business, operations, property
or financial or other condition of Ferro Corporation.

(g) There is no pending or, to the Seller’s knowledge, threatened action,
investigation or proceeding affecting such Seller or any of its subsidiaries before any
court, governmental agency or arbitrator which may materially adversely affect the financial
condition or operations of such Seller or any of its subsidiaries or the ability of such
Seller to perform its obligations under this Agreement or any other document to be delivered
by it hereunder, or which purports to affect the legality, validity or enforceability of
this Agreement or any other document to be delivered by it hereunder.

(h) No proceeds of any Purchase will be used to acquire any equity security of a class
which is registered pursuant to Section 12 of the Securities Exchange Act of 1934.

(i) No transaction contemplated hereby requires compliance with any bulk sales act or
similar law.

(j) Each Receivable purported to be sold by such Seller hereunder is an Eligible
Receivable (unless identified by such Seller as not an Eligible Receivable at the time of
sale and in each applicable Seller Report), and each such Receivable and each Transferred
Receivable, together with the Related Security, is owned (prior to its sale or contribution
hereunder) by such Seller free and clear of any Adverse Claim (other than any Adverse Claim
arising solely as the result of any action taken by the Purchaser). When Purchaser makes a
Purchase it shall acquire valid and perfected first priority ownership of each Purchased
Receivable and the Related Security and Collections with respect thereto free and clear of
any Adverse Claim (other than any Adverse Claim arising solely as the result of any action
taken by the Purchaser), and no effective financing statement or other instrument similar in
effect covering any Transferred Receivable, any interest therein, the Related Security or
Collections with respect thereto is on file in any recording office except such as may be
filed in favor of Purchaser in accordance with this Agreement or in connection with any
Adverse Claim arising solely as the result of any action taken by the Purchaser.

(k) Each Seller Report (if prepared by the relevant Seller, or to the extent that
information contained therein is supplied by such Seller), information, exhibit, financial
statement, document, book, record or report furnished or to be furnished at any time by such
Seller to the Purchaser in connection with this Agreement is or will be accurate in all
material respects as of its date or (except as otherwise disclosed to the Purchaser at such
time) as of the date so furnished, and no such document contains or will contain any untrue
statement of a material fact or omits or will omit to state a material fact necessary in
order to make the statements contained therein, in the light of the circumstances under
which they were made, not misleading.

(l) The principal place of business and chief executive office of the such
Seller and the office where such Seller keeps its records concerning the Transferred
Receivables are located at the address or addresses referred to in Section 5.01(b).
Such Seller is located in the jurisdiction of organization set forth in Exhibit F hereto
for purposes of Section 9-307 of the UCC as in effect in the State of New York; and the
office in the jurisdiction of organization of such Seller in which a UCC financing statement
is required to be filed in order to perfect the security interest granted by such Seller
hereunder is set forth in Exhibit F hereto (in each case as such Exhibit F may be amended
from time to time pursuant to Section 5.01(b)).

(m) The names and addresses of all the Lock-Box Banks, together with the account
numbers of the Lock-Box Accounts at such Lock-Box Banks, are specified in Exhibit B (as the
same may be updated from time to time pursuant to Section 5.01(h)).

(n) Such Seller is not known by and does not use any tradename or doing-business-as
name.

(o) With respect to any programs used by such Seller in the servicing of the
Receivables, no sublicensing agreements are necessary in connection with the designation of
a new Collection Agent pursuant to Section 6.01(b) so that such new Collection Agent shall
have the benefit of such programs (it being understood that,
however, the Collection Agent, if other than Ferro Corporation, shall be required to be
bound by a confidentiality agreement reasonably acceptable to such Seller).

(p) The transfers of Transferred Receivables by such Seller to the Purchaser pursuant
to this Agreement, and all other transactions between such Seller and the Purchaser, have
been and will be made in good faith and without intent to hinder, delay or defraud creditors
of such Seller.

(q) Such Seller has no office or place of business in the province of Quebec, Canada.

(r) Such Seller does not have, and since September 28, 2000 has not had, a place of
business in either the United Kingdom or Ireland.

(s) Such Seller has (i) timely filed all federal tax returns required to be
filed, (ii) timely filed all other material state and local tax returns and (iii) paid or
made adequate provision for the payment of all taxes, assessments and other governmental
charges (other than any tax, assessment or governmental charge which is being contested in
good faith and by proper proceedings, and with respect to which the obligation to pay such
amount is adequately reserved against in accordance with generally accepted accounting
principles).

ARTICLE V

COVENANTS

SECTION 5.01. Covenants of the Sellers. From the date hereof until the first day
following the Facility Termination Date on which all of the Transferred Receivables are either
collected in full or become Defaulted Receivables:

(a) Compliance with Laws, Etc. Each Seller will comply in all material
respects with all applicable laws, rules, regulations and orders and preserve and maintain
its corporate existence, rights, franchises, qualifications and privileges except to the
extent that the failure so to comply with such laws, rules and regulations or the failure so
to preserve and maintain such existence, rights, franchises, qualifications, and privileges
would not materially adversely affect the collectibility of the Transferred Receivables or
the ability of such Seller to perform its obligations under this Agreement.

(b) Offices, Records and Books of Account. Each Seller will keep its principal
place of business and chief executive office and the office where it keeps its records
concerning the Transferred Receivables at the address of such Seller set forth under its
name on the signature page to this Agreement, or, upon 30 days’ days’ prior
written notice to the Purchaser, at any other locations in jurisdictions where within
the United States. Such Seller will not change its name or its state of organization,
unless (i) the Seller shall have provided the Purchaser with at least 30 days’ prior written
notice thereof, together with an updated Exhibit F, and (ii) no later than the effective
date of such change, all actions required by Section 5.01(j) shall have been taken and
completed. Upon confirmation by the Purchaser’s assignee during the existence of the
Sale Agreement or, thereafter, the Purchaser of receipt of any such notice (together with an
updated Exhibit F) and the completion, as aforesaid, of all actions required by
Section 5.01(j), Exhibit F to this Agreement shall, without further action by any party, be
deemed to be amended and replaced by the updated Exhibit F accompanying such notice.
Each Seller also will maintain and implement administrative and operating procedures
(including, without limitation, an ability to recreate records evidencing Transferred
Receivables and related Contracts in the event of the destruction of the originals thereof),
and keep and maintain all documents, books, records and other information reasonably
necessary or advisable for the collection of all Transferred Receivables (including, without
limitation, records adequate to permit the daily identification of each new Transferred
Receivable and all Collections of and adjustments to each existing Transferred Receivable).
Each Seller shall make a notation in its books and records, including its computer files, to
indicate which Receivables have been sold or contributed to the Purchaser hereunder.

(c) Performance and Compliance with Contracts and Credit and Collection Policy.
Each Seller will, at its expense, timely and fully perform and comply with all material
provisions, covenants and other promises required to be observed by it under the Contracts
related to the Transferred Receivables, and timely and fully comply in all material respects
with the Credit and Collection Policy in regard to each Transferred Receivable and the
related Contract.

(d) Sales, Liens, Etc. Except for the sales and contributions of Receivables
contemplated herein, each Seller will not sell, assign (by operation of law or otherwise) or
otherwise dispose of, or create or suffer to exist any Adverse Claim upon or with respect
to, any Transferred Receivable, Related Security, related Contract or Collections, or upon
or with respect to any account to which any Collections of any Transferred Receivable are
sent, or assign any right to receive income in respect thereof.

(e) Extension or Amendment of Transferred Receivables. Except as provided in
Section 6.02(c), each Seller will not extend, amend or otherwise modify the terms of any
Transferred Receivable, or amend, modify or waive any term or condition of any Contract
related thereto.

(f) Change in Business or Credit and Collection Policy. Each Seller will not
make any change in the character of its business or in the Credit and Collection Policy that
would, in either case, materially adversely affect the collectibility of the Transferred
Receivables or the ability of such Seller to perform its obligations under this Agreement.

(g) Audits. Each Seller will, from time to time during regular business hours
as requested by the Purchaser or its assigns, permit the Purchaser, or its agents,
representatives or assigns, (i) to examine and make copies of and abstracts from all books,
records and documents (including, without limitation, computer tapes and disks) in the
possession or under the control of such Seller relating to Transferred Receivables and the
Related Security, including, without limitation, the related Contracts, and (ii) to visit
the offices and properties of such Seller for the purpose of examining such materials
described in clause (i) above, and to discuss matters relating to Transferred Receivables
and the Related Security or such Seller’s Seller’s performance hereunder or under
the Contracts with any of the officers or employees of such Seller having knowledge of such
matters.

(h) Change in Payment Instructions to Obligors. Each Seller will not add or
terminate any bank or bank account as a Lock-Box Bank or Lock-Box Account from those listed
in Exhibit B to this Agreement, or make any change in its instructions to Obligors regarding
payments to be made to any Lock-Box Bank, unless the Purchaser shall have received notice of
such addition, termination or change (including an updated Exhibit B) and executed copies of
Lock-Box Agreements with each new Lock-Box Bank or with respect to each new Lock-Box
Account.

(i) Deposits to Lock-Box Accounts. Each Seller will instruct all Obligors to
remit all their payments in respect of Transferred Receivables into Lock-Box Accounts. If
such Seller shall receive any Collections directly, it shall immediately (and in any event
within two Business Days) deposit the same to a Lock-Box Account. Such Seller will not
deposit or otherwise credit, or cause or permit to be so deposited or credited, to any
Lock-Box Account cash or cash proceeds other than Collections of Transferred Receivables.

(j) Further Assurances. (i)  Each Seller agrees from time to time, at its
expense, promptly to execute and deliver all further instruments and documents, and to take
all further actions, that may be necessary or desirable, or that the Purchaser or its
assignee may reasonably request, to perfect, protect or more fully evidence the sale and
contribution of Receivables under this Agreement, or to enable the Purchaser or its assignee
to exercise and enforce its respective rights and remedies under this Agreement. Without
limiting the foregoing, such Seller will, upon the request of the Purchaser or its assignee,
(A) execute and file such financing or continuation statements, or amendments thereto, and
such other instruments and documents, that may be necessary or desirable to perfect, protect
or evidence such Transferred Receivables and any security interest in other assets of
such Seller granted hereunder; and (B) deliver to the Purchaser copies of all Contracts
relating to the Transferred Receivables and all records relating to such Contracts and the
Transferred Receivables, whether in hard copy or in magnetic tape or diskette format (which
if in magnetic tape or diskette format shall be compatible with the Purchaser’s
Purchaser’s computer equipment).

(ii) Each Seller authorizes the Purchaser or its assignee to file financing or
continuation statements, and amendments thereto and assignments thereof, relating to the
Transferred Receivables and the Related Security, the related Contracts and the Collections
with respect thereto without the signature of such Seller where permitted by law. A
photocopy or other reproduction of this Agreement shall be sufficient as a financing
statement where permitted by law. and any other assets of the Seller in which a security
interest is granted hereunder.

(iii) Each Seller shall perform its obligations under the Contracts related to the
Transferred Receivables to the same extent as if the Transferred Receivables had not been
sold or transferred.

(k) Reporting Requirements. Each Seller will provide to the Purchaser the
following:

(i) as soon as possible and in any event within five days after the occurrence
of each Event of Termination or Incipient Event of Termination, a statement of the
chief financial officer of such Seller setting forth details of such Event of
Termination or Incipient Event of Termination and the action that such Seller has
taken and proposes to take with respect thereto;

(ii) promptly after the filing or receiving thereof, copies of all reports and
notices that such Seller or any Affiliate files under ERISA with the Internal
Revenue Service or the Pension Benefit Guaranty Corporation or the U.S. Department
of Labor or that such Seller or any Affiliate receives from any of the foregoing or
from any multiemployer plan (within the meaning of Section 4001(a)(3) of ERISA) to
which such Seller or any Affiliate is or was, within the preceding five years, a
contributing employer, in each case in respect of the assessment of withdrawal
liability or an event or condition which could, in the aggregate, result in the
imposition of liability on such Seller and/or any such Affiliate in excess of
$5,000,000;

(iii) at least ten Business Days 30 days prior to any change in such
Seller’s name Seller’s name or jurisdiction of incorporation, a notice
setting forth the new name or jurisdiction of incorporation and the
effective date thereof; and

(iv) such other information respecting the Transferred Receivables or the
condition or operations, financial or otherwise, of such Seller as the Purchaser may
from time to time reasonably request.

(l) Separate Conduct of Business. Each Seller will: (i) maintain separate
corporate records and books of account from those of the Purchaser; (ii) conduct its
business from an office separate from that of the Purchaser; (iii) ensure that all oral and
written communications, including without limitation, letters, invoices, purchase orders,
contracts, statements and applications, will be made solely in its own name; (iv) have
stationery and other business forms and a mailing address and a telephone number separate
from those of the Purchaser; (v) not hold itself out as having agreed to pay, or as being
liable for, the obligations of the Purchaser; (vi) not engage in any transaction with the
Purchaser except as contemplated by this Agreement or as permitted by the Sale Agreement;
(vii) continuously maintain as official records the resolutions, agreements and other
instruments underlying the transactions contemplated by this Agreement; and (viii) disclose
on its annual financial statements (A) the effects of the transactions contemplated by this
Agreement in accordance with generally accepted accounting principles and (B) that the
assets of the Purchaser are not available to pay its creditors.

(m) Foreign Offices. Each Seller agrees that it will not take any action to
open a place of business in either the United Kingdom or Ireland without (i) providing the
Purchaser and its assignee with at least ten Business Days’ prior written notice, and
(ii) taking all actions that the Purchase Purchaser or its assignee may reasonably
request pursuant to Section 5.01(j) with respect to the laws of the United Kingdom or
Ireland, as applicable.

(n) Order Acknowledgments. Ferro Electronic agrees that all order
acknowledgments sent by Ferro Electronic will include an Ohio choice of law provision in the
form set forth in the form of order acknowledgment attached hereto as Exhibit G.

SECTION 5.02. Grant of Security Interest. To secure all obligations of each Seller
arising in connection with this Agreement, and each other agreement entered into in connection with
this Agreement, whether now or hereafter existing, due or to become due, direct or indirect, or
absolute or contingent, including, without limitation, Indemnified Amounts, payments on account of
Collections received or deemed to be received, and any other amounts due the Purchaser hereunder,
each Seller hereby assigns and grants to Purchaser a security interest in all of such Seller’s
Seller’s right, title and interest now or hereafter existing in, to and under all
Receivables which do not constitute Transferred Receivables, the Related Security and all
Collections with regard thereto.

SECTION 5.03. Covenant of each Seller and the Purchaser. Each Seller and the
Purchaser have structured this Agreement with the intention that each Purchase of Receivables
hereunder be treated as a sale of such Receivables by such Seller to the Purchaser for all purposes
and each contribution of Receivables hereunder shall be treated as an absolute transfer of such
Receivables by such Seller to the Purchaser for all purposes. Each Seller and the Purchaser shall
record each Purchase and contribution as a sale or purchase or capital contribution, as the case
may be, on its books and records, and reflect each Purchase and contribution in its financial
statements and tax returns as a sale or purchase or capital contribution, as the case may be. In
the event that, contrary to the mutual intent of each Seller and the Purchaser, any Purchase or
contribution of Receivables hereunder is not characterized as a sale or absolute transfer, such
Seller shall, effective as of the date hereof, be deemed to have granted (and such Seller hereby
does grant) to the Purchaser a first priority security interest in and to any and all Receivables,
the Related Security and the proceeds thereof to secure the repayment of all amounts advanced to
such Seller hereunder with accrued interest thereon, and this Agreement shall be deemed to be a
security agreement.

ARTICLE VI

ADMINISTRATION AND COLLECTION

SECTION 6.01. Designation of Collection Agent. The servicing, administration and
collection of the Transferred Receivables shall be conducted by such Person (the “Collection
Agent”) so designated hereunder from time to time. Until the Purchaser or its assignee gives
notice to Ferro Corporation of the designation of a new Collection Agent, Ferro Corporation is
hereby designated as, and hereby agrees to perform the duties and obligations of, the Collection
Agent pursuant to the terms hereof. Ferro Corporation agrees that such notice may be given at any
time in the Purchaser’s or assignee’s Purchaser’s or assignee’s discretion. Upon receipt
by Ferro Corporation of such notice, Ferro Corporation agrees that it will terminate its activities
as Collection Agent hereunder in a manner which the Purchaser (or its designee) believes will
facilitate the transition of the performance of such activities to the new Collection Agent, and
Ferro Corporation shall use its best efforts to assist the Purchaser (or its designee) to take over
the servicing, administration and collection of the Transferred Receivables, including, without
limitation, providing access to and copies of all computer tapes or disks and other documents or
instruments that evidence or relate to Transferred Receivables maintained in its capacity as
Collection Agent and access to all employees and officers of Ferro Corporation responsible with
respect thereto. The Purchaser at any time after giving such notice may designate as Collection
Agent any Person (including itself) to succeed Ferro Corporation or any successor Collection Agent,
if such Person shall consent and agree to the terms hereof. The Collection Agent may, with the
prior consent of the Purchaser, subcontract with any other Person for the servicing, administration
or collection of Transferred Receivables (and the Purchaser, on behalf of itself and the Agent,
hereby consents to the subcontracting to Ferro Electronic of the servicing, administration and
collection of Transferred Receivables originated by Ferro Electronic). Any such subcontract shall
not affect the Collection Agent’s Agent’s liability for performance of its duties and
obligations pursuant to the terms hereof, and any such subcontract shall automatically
terminate upon designation of a successor Collection Agent.

SECTION 6.02. Duties of Collection Agent. (a)  The Collection Agent shall take or
cause to be taken all such actions as may be necessary or advisable to collect each Transferred
Receivable from time to time, all in accordance with applicable laws, rules and regulations, with
reasonable care and diligence, and in accordance with the Credit and Collection Policy. The
Purchaser hereby appoints the Collection Agent, from time to time designated pursuant to Section
6.01, as agent to enforce its ownership and other rights in the Transferred Receivables, the
Related Security and the Collections with respect thereto. In performing its duties as Collection
Agent, the Collection Agent shall exercise the same care and apply the same policies as it would
exercise and apply if it owned the Transferred Receivables and shall act in the best interests of
the Purchaser and its assignees.

(b) Prior to the tenth Business Day of each month, the Collection Agent shall prepare and
forward to the Purchaser (i) a Monthly Report, relating to all then outstanding Transferred
Receivables, and the Related Security and Collections with respect thereto, in each case, as of the
close of business of the Collection Agent on the last day of the immediately preceding month, and
(ii) if requested by the Purchaser, a listing by Obligor of all Transferred Receivables correlating
Purchased Receivables and Purchases, together with an aging report of such Transferred Receivables.
If a Non-Investment Grade Event (but no BB Downgrade Event ) other than the 2005 Downgrade
Event or the 2006 Downgrade Events) shall have occurred and be continuing, on or prior to the
close of business on the second Business Day of each Week, the Collection Agent shall prepare and
forward to the Purchaser or its assignee a Weekly Report which shall contain information related to
the Receivables current as of the close of business on the last Business Day of the preceding Week.
If a BB Downgrade Event (other than the 2005 Downgrade Event or the 2006 Downgrade Events)
shall have occurred and be continuing, by no later than 11:00 A.M. (New York City time) on each
Business Day, the Collection Agent shall prepare and forward to the Purchaser or its assignee a
Daily Report which shall contain information relating to the Receivables current as of the close of
business on the immediately prior Business Day.

(c) If no Event of Termination or Incipient Event of Termination shall have occurred and be
continuing, Ferro Corporation, while it is the Collection Agent, may, in accordance with the Credit
and Collection Policy, extend the maturity or adjust the Outstanding Balance of any Transferred
Receivable as Ferro Corporation deems appropriate to maximize Collections thereof, or otherwise
amend or modify the terms of any Transferred Receivable.

(d) Each Seller shall deliver to the Collection Agent, and the Collection Agent shall hold in
trust for each Seller and the Purchaser in accordance with their respective interests, all
documents, instruments and records (including, without limitation, computer tapes or disks) which
evidence or relate to Transferred Receivables.

(e) The Collection Agent shall as soon as practicable following receipt turn over to the
relevant Seller any cash collections or other cash proceeds received with respect to Receivables
not constituting Transferred Receivables, less, in the event such Seller is not the Collection
Agent, all reasonable and appropriate out-of-pocket costs and expenses of the Collection Agent of
servicing, collecting and administering the Receivables to the extent not covered by the Collection
Agent Fee received by it.

(f) The Collection Agent also shall perform the other obligations of the “Collection Agent”
set forth in this Agreement with respect to the Transferred Receivables.

SECTION 6.03. Collection Agent Fee. The Purchaser shall pay to the Collection Agent,
so long as it is acting as the Collection Agent hereunder, a periodic collection fee (the
“Collection Agent Fee”) of 0.25% per annum on the average daily aggregate Outstanding
Balance of the Transferred Receivables, payable on the tenth day of each month (or, if such day is
not a Business Day, the immediately succeeding Business Day) or such other day during each calendar
month as the Purchaser and the Collection Agent shall agree.

SECTION 6.04. Certain Rights of the Purchaser. (a)  The Purchaser may, at any time,
give notice of ownership and/or direct the Obligors of Transferred Receivables and any Person
obligated on any Related Security, or any of them, that payment of all amounts payable under any
Transferred Receivable shall be made directly to the Purchaser or its designee. Each Seller hereby
transfers to the Purchaser (and its assigns and designees) the exclusive ownership and control of
each Lock-Box Account maintained by such Seller for the purpose of receiving Collections.

(b) At any time following the designation of a Collection Agent other than Ferro Corporation
pursuant to Section 6.01 or following an Event Termination, a Non-Investment Grade Event (other
than the 2005 Downgrade Event or the 2006 Downgrade Events) or an Incipient Event of
Termination:

(i) Each Seller shall, upon the Purchaser’s Purchaser’s request and at such
Seller’s Seller’s expense, give notice of the Purchaser’s ownership to each Obligor
of Transferred Receivables and direct that payments of all amounts payable under such
Transferred Receivables be made directly to the Purchaser or its designee.

(ii) At the Purchaser’s Purchaser’s request and at the relevant Seller’s
Seller’s expense, each Seller and the Collection Agent shall (A) assemble all of the
documents, instruments and other records (including, without limitation, computer tapes and
disks) that evidence or relate to the Transferred Receivables, and the related Contracts and
Related Security, or that are otherwise necessary or desirable to collect the Transferred
Receivables, and shall make the same available to the Purchaser at a place selected by the
Purchaser or its designee, and (B) segregate all cash, checks and other instruments received
by it from time to time constituting Collections of Transferred Receivables in a manner
acceptable to the Purchaser and, promptly upon receipt, remit all such cash, checks and
instruments, duly indorsed or with duly executed instruments of transfer, to the Purchaser
or its designee. The Purchaser shall also have the right to make copies of all such
documents, instruments and other records at any time.

(iii) Each Seller authorizes the Purchaser to take any and all steps in such Seller’s
Seller’s name and on behalf of such Seller that are necessary or desirable, in the
determination of the Purchaser, to collect amounts due under the Transferred Receivables,
including, without limitation, endorsing such Seller’s Seller’s name on checks and
other instruments representing Collections of Transferred Receivables and enforcing the
Transferred Receivables and the Related Security and related Contracts.

SECTION 6.05. Rights and Remedies. (a)  If either Seller or the Collection Agent
fails to perform any of its obligations under this Agreement, the Purchaser may (but shall not be
required to) itself perform, or cause performance of, such obligation, and, if such Seller (as
Collection Agent or otherwise) fails to so perform, the costs and expenses of the Purchaser
incurred in connection therewith shall be payable by such Seller as provided in Section 8.01 or
Section 9.04 as applicable.

(b) Each Seller shall perform all of its obligations under the Contracts related to the
Transferred Receivables to the same extent as if such Seller had not sold or contributed
Receivables hereunder and the exercise by the Purchaser of its rights hereunder shall not relieve
such Seller from such obligations or its obligations with respect to the Transferred Receivables.
The Purchaser shall not have any obligation or liability with respect to any Transferred
Receivables or related Contracts, nor shall the Purchaser be obligated to perform any of the
obligations of such Seller thereunder.

(c) Each Seller shall cooperate with the Collection Agent in collecting amounts due from
Obligors in respect of the Transferred Receivables.

(d) Each Seller hereby grants to Collection Agent an irrevocable power of attorney, with full
power of substitution, coupled with an interest, to take in the name of such Seller all steps
necessary or advisable to endorse, negotiate or otherwise realize on any writing or other right of
any kind held or transmitted by such Seller or transmitted or received by Purchaser (whether or not
from such Seller) in connection with any Transferred Receivable.

SECTION 6.06. Transfer of Records to Purchaser. Each Purchase and contribution of
Receivables hereunder shall include the transfer to the Purchaser of all of the relevant Seller’s
Seller’s right and title to and interest in the records relating to such Receivables and
shall include an irrevocable non-exclusive license to the use of such Seller’s Seller’s
computer software system to access and create such records. Such license shall be without royalty
or payment of any kind, is coupled with an interest, and shall be irrevocable until all of the
Transferred Receivables are either collected in full or become Defaulted Receivables.

Each Seller shall take such action requested by the Purchaser, from time to time hereafter,
that may be necessary or appropriate to ensure that the Purchaser has an enforceable ownership
interest in the records relating to the Transferred Receivables and rights (whether by ownership,
license or sublicense) to the use of such Seller’s Seller’s computer software system to
access and create such records.

In recognition of each Seller’s Seller’s need to have access to the records
transferred to the Purchaser hereunder, the Purchaser hereby grants to such Seller an irrevocable
license to access such records in connection with any activity arising in the ordinary course of
such Seller’s Seller’s business or in performance of its duties as Collection Agent,
provided that (i) such Seller shall not disrupt or otherwise interfere with the Purchaser’s
Purchaser’s use of and access to such records during such license period and (ii) such
Seller consents to the assignment and delivery of the records (including any information contained
therein relating to such Seller or its operations) to any assignees or transferees of the Purchaser
provided they agree to hold such records confidential.

ARTICLE VII

EVENTS OF TERMINATION

SECTION 7.01. Events of Termination. If any of the following events (“Events of
Termination”) shall occur and be continuing:

(a) The Collection Agent (if it is Ferro Corporation or any of its Affiliates)
(i) shall fail to perform or observe any term, covenant or agreement under this Agreement
(other than as referred to in clauses (ii), (iii), (iv) or (v) of this subsection (a)) and
such failure shall remain unremedied for five Business Days, or (ii) shall fail to make when
due any payment or deposit to be made by it under this Agreement, or (iii) shall fail to
deliver any Monthly Report when due and such failure shall remain unremedied for
three Business Days, or (iv) shall fail to deliver any Weekly Report when due and such
failure shall remain unremedied for more than two Business Days, or (v) shall fail to
deliver any Daily Report when due and such failure shall remain unremedied for more than two
Business Days, or shall fail to deliver when due more than two Daily Reports in any calendar
week; or

(b) Ferro Corporation shall fail to transfer to the Purchaser when requested any
rights, pursuant to this Agreement, which Ferro Corporation then has as Collection Agent, or
either Seller shall fail to make any payment required under Section 2.04(a) or 2.04(b); or

(c) Any representation or warranty made or deemed made by either Seller (or any of its
officers) under or in connection with this Agreement or any information or report delivered
by such Seller pursuant to this Agreement shall prove to have been incorrect or untrue in
any material respect when made or deemed made or delivered; or

(d) Either Seller shall fail to perform or observe any other term, covenant or
agreement contained in this Agreement on its part to be performed or observed and any such
failure shall remain unremedied for 10 days after written notice thereof shall have been
given to the Seller by the Purchaser; or

(e) Either Seller shall fail to pay any principal of or premium or interest on any of
its Debt which is outstanding in a principal amount of at least $5,000,000 in the aggregate
when the same becomes due and payable (whether by scheduled maturity, required prepayment,
acceleration, demand or otherwise), and such failure shall continue after the applicable
grace period, if any, specified in the agreement or instrument relating to such Debt; or any
other event shall occur or condition shall exist under any agreement or instrument relating
to any such Debt and shall continue after the applicable grace period, if any, specified in
such agreement or instrument, if the effect of such event or condition is to accelerate, or
to permit the acceleration of, the maturity of such Debt; or any such Debt shall be declared
to be due and payable, or required to be prepaid (other than by a regularly scheduled
required prepayment), redeemed, purchased or defeased, or an offer to repay, redeem,
purchase or defease such Debt shall be required to be made, in each case prior to the stated
maturity thereof; or

(f) Any Purchase or contribution of Receivables hereunder, the Related Security and the
Collections with respect thereto shall for any reason cease to constitute valid and
perfected ownership of such Receivables, Related Security and Collections free and clear of
any Adverse Claim; or

(g) Either Seller shall generally not pay its debts as such debts become due, or shall
admit in writing its inability to pay its debts generally, or shall make a general
assignment for the benefit of creditors; or any proceeding shall be instituted by or against
either Seller seeking to adjudicate it a bankrupt or insolvent, or seeking liquidation,
winding up, reorganization, arrangement, adjustment, protection, relief, or composition of
it or its debts under any law relating to bankruptcy, insolvency or reorganization or relief
of debtors, or seeking the entry of an order for relief or the appointment of a receiver,
trustee, custodian or other similar official for it or for any substantial part of its
property and, in the case of any such proceeding instituted against it (but not instituted
by it), either such proceeding shall remain undismissed or unstayed for a period of 30 days,
or any of the actions sought in such proceeding (including, without limitation, the entry of
an order for relief against, or the appointment of a receiver, trustee, custodian or other
similar official for, it or for any substantial part of its property) shall occur; or either
Seller or any of its subsidiaries shall take any corporate action to authorize any of the
actions set forth above in this subsection (g); or

(h) an Event of Termination shall have occurred under the Sale Agreement; or

(i) There shall have occurred any material adverse change in the financial condition or
operations of Ferro Corporation since December 31, 1999 2004; or there shall have
occurred any event which may materially adversely affect the collectibility of the
Transferred Receivables or the ability of either Seller to collect Transferred Receivables
or otherwise perform its obligations under this Agreement; the Purchaser hereby
acknowledges that in the event the capital stock of Ferro Corporation is no longer listed
for trading on the New York Stock Exchange (a “Delisting”), such Delisting shall not, in and
of itself and excluding the circumstances leading to such Delisting or resulting therefrom,
constitute a material adverse change in the business, operations, property or financial or
other condition of Ferro Corporation; or

(j) At least 80% of the outstanding capital stock of Ferro Electronic Materials , Inc.
shall cease to be owned, directly or indirectly, by Ferro Corporation; or

(k) The Undertaking Agreement shall cease to be in full force and effect, or Ferro
Corporation shall fail to perform or observe any term, covenant or agreement contained in
the Undertaking Agreement on its part to be performed or observed and any such failure
shall remain unremedied for fifteen days after written notice thereof shall have been given
to Ferro Corporation;

then, and in any such event, the Purchaser may, by notice to each Seller, take either or both of
the following actions: (x) declare the Facility Termination Date to have occurred (in which case
the Facility Termination Date shall be deemed to have occurred) and (y) without limiting any right
under this Agreement to replace the Collection Agent, designate another Person to succeed Ferro
Corporation as Collection Agent; provided, that, automatically upon the occurrence of any
event (without any requirement for the passage of time or the giving of notice) described in
paragraph (g) of this Section 7.01, the Facility Termination Date shall occur, Ferro Corporation
(if it is then serving as the Collection Agent) shall cease to be the Collection Agent, and the
Purchaser (or its assigns or designees) shall become the Collection Agent. Upon any such
declaration or designation or upon such automatic termination, the Purchaser shall have, in
addition to the rights and remedies under this Agreement, all other rights and remedies with
respect to the Receivables provided after default under the UCC and under other applicable law,
which rights and remedies shall be cumulative.

ARTICLE VIII

INDEMNIFICATION

SECTION 8.01. Indemnities by the Sellers. Without limiting any other rights which
the Purchaser may have hereunder or under applicable law, each Seller hereby agrees to indemnify
the Purchaser and its assigns and transferees (each, an “Indemnified Party”) from
and against any and all damages, claims, losses, liabilities and related costs and expenses,
including reasonable attorneys’ attorneys’ fees and disbursements (all of the foregoing
being collectively referred to as “Indemnified Amounts”), awarded against or incurred by
any Indemnified Party arising out of or as a result of this Agreement or the purchase or
contribution of any Transferred Receivables originated by such Seller or in respect of any
Transferred Receivable or any Contract originated by such Seller, including, without limitation,
arising out of or as a result of:

(i) the inclusion, or purported inclusion, in any Purchase of any Receivable that is
not an Eligible Receivable on the date of such Purchase, or the characterization in any
Seller Report or other statement made by such Seller of any Transferred Receivable as an
Eligible Receivable which is not an Eligible Receivable as of the date of such Seller Report
or statement;

(ii) any representation or warranty or statement made or deemed made by such Seller (or
any of its officers) under or in connection with this Agreement, which shall have been
incorrect in any material respect when made;

(iii) the failure by such Seller to comply with any applicable law, rule or regulation
with respect to any Transferred Receivable or the related Contract; or the failure of any
Transferred Receivable originated by such Seller or the related Contract to conform to any
such applicable law, rule or regulation;

(iv) the failure to vest in the Purchaser absolute ownership of the Receivables that
are, or that purport to be, the subject of a Purchase or contribution under this Agreement
and the Related Security and Collections in respect thereof, free and clear of any Adverse
Claim;

(v) the failure of such Seller to have filed, or any delay in filing, financing
statements or other similar instruments or documents under the UCC of any applicable
jurisdiction or other applicable laws with respect to any Receivables that are, or that
purport to be, the subject of a Purchase or contribution under this Agreement and the
Related Security and Collections in respect thereof, whether at the time of any Purchase or
contribution or at any subsequent time;

(vi) any dispute, claim, offset or defense (other than discharge in bankruptcy of the
Obligor) of the Obligor to the payment of any Receivable originated by such Seller that is,
or that purports to be, the subject of a Purchase or contribution under this Agreement
(including, without limitation, a defense based on such Receivable or the related Contract
not being a legal, valid and binding obligation of such Obligor enforceable against it in
accordance with its terms), or any other claim resulting from the sale of the merchandise or
services related to such Receivable or the furnishing or failure to furnish such merchandise
or services or relating to collection activities with respect to such Receivable (if such
collection activities were performed by Ferro Corporation acting as Collection Agent);

(vii) any failure of such Seller, as Collection Agent or otherwise, to perform its
duties or obligations in accordance with the provisions hereof or to perform its duties or
obligations under any Contract related to a Transferred Receivable originated by such
Seller;

(viii) any products liability or other claim arising out of or in connection with
merchandise, insurance or services which are the subject of any Contract;

(ix) the commingling of Collections of Transferred Receivables by such Seller or a
designee of such Seller, as Collection Agent or otherwise, at any time with other funds of
such Seller or an Affiliate of such Seller;

(x) any investigation, litigation or proceeding related to this Agreement or the use of
proceeds of Purchases or the ownership of Receivables, the Related Security, or Collections
with respect thereto or in respect of any Receivable, Related Security or Contract;

(xi) any failure of such Seller to comply with its covenants contained in this
Agreement;

(xii) any Collection Agent Fees or other costs and expenses payable to any replacement
Collection Agent;

(xiii) any claim brought by any Person other than an Indemnified Party arising from any
activity by such Seller or any Affiliate of such Seller in servicing, administering or
collecting any Transferred Receivable; or

(xiv) any Dilution with respect to any Transferred Receivable originated by such
Seller.

It is expressly agreed and understood by the parties hereto (i) that the foregoing indemnification
is not intended to, and shall not, constitute a guarantee of the collectibility or payment of the
Transferred Receivables and (ii) that nothing in this Section 8.01 shall require either Seller to
indemnify any Person (A) for Receivables which are not collected, not paid or uncollectible on
account of the insolvency, bankruptcy, or financial inability to pay of the applicable Obligor,
(B) for damages, losses, claims or liabilities or related costs or expenses resulting from such
Person’s to the extent found in a final non-appealable judgment of a court of competent
jurisdiction to have resulted from such Person’s gross negligence or willful misconduct, or
(C) for any income taxes or franchise taxes incurred by such Person arising out of or as a result
of this Agreement or in respect of any Transferred Receivable or any Contract.

ARTICLE IX

MISCELLANEOUS

SECTION 9.01. Amendments, Etc. No amendment or waiver of any provision of this
Agreement or consent to any departure by either Seller therefrom shall be effective unless in a
writing signed by the Purchaser and, in the case of any amendment, also signed by the Sellers, and
then such amendment, waiver or consent shall be effective only in the specific instance and for the
specific purpose for which given. No failure on the part of the Purchaser to exercise, and no
delay in exercising, any right hereunder shall operate as a waiver thereof; nor shall any single or
partial exercise of any right hereunder preclude any other or further exercise thereof or the
exercise of any other right. Notwithstanding any other provision of this Section 9.01,
Exhibit F hereto may be amended in accordance with the procedures set forth in Section 5.01(b).

SECTION 9.02. Notices, Etc. All notices and other communications hereunder shall,
unless otherwise stated herein, be in writing (which shall include facsimile communication) and be
faxed or delivered, to each party hereto, at its address set forth under its name on the signature
pages hereof or at such other address as shall be designated by such party in a written notice to
the other parties hereto. Notices and communications by facsimile shall be effective when sent
(and shall be followed by hard copy sent by regular mail), and notices and communications sent by
other means shall be effective when received.

SECTION 9.03. Binding Effect; Assignability. (a)  This Agreement shall be binding
upon and inure to the benefit of the Sellers, the Purchaser and their respective successors and
assigns; provided, however, that neither Seller may assign its rights or
obligations hereunder or any interest herein without the prior written consent of the Purchaser.
In connection with any sale or assignment by the Purchaser of all or a portion of the Transferred
Receivables, the buyer or assignee, as the case may be, shall, to the extent of its purchase or
assignment, have all rights of the Purchaser under this Agreement (as if such buyer or assignee, as
the case may be, were the Purchaser hereunder) except to the extent specifically provided in the
agreement between the Purchaser and such buyer or assignee, as the case may be.

(b) This Agreement shall create and constitute the continuing obligations of the parties
hereto in accordance with its terms, and shall remain in full force and effect until such time,
after the Facility Termination Date, when all of the Transferred Receivables are either collected
in full or become Defaulted Receivables; provided, however, that rights and
remedies with respect to any breach of any representation and warranty made by either Seller
pursuant to Article IV and the provisions of Article VIII and Sections 9.04, 9.05 and 9.06 shall be
continuing and shall survive any termination of this Agreement.

SECTION 9.04. Costs, Expenses and Taxes. (a)  In addition to the rights of
indemnification granted to the Purchaser pursuant to Article VIII hereof, each Seller agrees to pay
on demand all costs and expenses in connection with the preparation, execution and delivery of this
Agreement and the other documents and agreements to be delivered hereunder, including, without
limitation, the reasonable fees and out-of-pocket expenses of counsel for the Purchaser with
respect thereto and with respect to advising the Purchaser as to its rights and remedies under this
Agreement, and each Seller agrees to pay all costs and expenses, if any (including reasonable
counsel fees and expenses), in connection with the enforcement of this Agreement and the other
documents to be delivered hereunder excluding, however, any costs of enforcement or
collection of Transferred Receivables which are not paid on account of the insolvency, bankruptcy
or financial inability to pay of the applicable Obligor.

(b) In addition, each Seller agrees to pay any and all stamp and other taxes and fees payable
in connection with the execution, delivery, filing and recording of this Agreement or the other
documents or agreements to be delivered hereunder, and each Seller agrees to save each Indemnified
Party harmless from and against any liabilities with respect to or resulting from any delay in
paying or omission to pay such taxes and fees.

SECTION 9.05. No Proceedings. Each Seller hereby agrees that it will not institute
against the Purchaser any proceeding of the type referred to in Section 7.01(g) so long as there
shall not have elapsed one year plus one day since the later of (i) the Facility Termination Date
and (ii) the date on which all of the Transferred Receivables are either collected in full or
become Defaulted Receivables.

SECTION 9.06. Confidentiality. Each party hereto agrees to maintain the
confidentiality of this Agreement in communications with third parties and otherwise; provided that
this Agreement may be disclosed (i) to third parties to the extent such disclosure is made pursuant
to a written agreement of confidentiality in form and substance reasonably satisfactory to the
other party hereto, and (ii) to such party’s party’s legal counsel and auditors and the
Purchaser’s Purchaser’s assignees, if they agree in each case to hold it confidential and
(iii) to the extent required by applicable law or regulation or by any court, regulatory body or
agency having jurisdiction over such party (including, without limitation, the filing of this
Agreement with the SEC as an exhibit to an annual or quarterly report under the Securities Exchange
Act of 1934); and provided, further, that such party shall have no obligation of
confidentiality in respect of any information which may be generally available to the public or
becomes available to the public through no fault of such party.

SECTION 9.07. GOVERNING LAW. THIS AGREEMENT, IN ACCORDANCE WITH SECTION 5-1401 OF
THE GENERAL OBLIGATIONS LAW OF THE STATE OF NEW YORK, SHALL BE GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO ANY CONFLICT OF LAWS
PRINCIPLES THEREOF THAT WOULD CALL FOR THE APPLICATION OF THE LAWS OF ANY OTHER JURISDICTION,
EXCEPT TO THE EXTENT THAT, PURSUANT TO THE UCC OF THE STATE OF NEW YORK, THE PERFECTION AND THE
EFFECT OF PERFECTION OR NON-PERFECTION OF THE PURCHASER’S PURCHASER’S OWNERSHIP OF OR
SECURITY INTEREST IN THE RECEIVABLES ARE GOVERNED BY THE LAWS OF A JURISDICTION OTHER THAN THE
STATE OF NEW YORK; PROVIDED, HOWEVER, THAT SECTION 2.02(e) SHALL BE GOVERNED BY THE LAWS OF THE
FEDERAL REPUBLIC OF GERMANY.

SECTION 9.08. Third Party Beneficiary. Each of the parties hereto hereby acknowledges
that the Purchaser may assign all or any portion of its rights under this Agreement and that such
assignees may (except as otherwise agreed to by such assignees) further assign their rights under
this Agreement, and each Seller hereby consents to any such assignments. All such assignees,
including parties to the Sale Agreement in the case of assignment to such parties, shall be third
party beneficiaries of, and shall be entitled to enforce the Purchaser’s Purchaser’s rights
and remedies under, this Agreement to the same extent as if they were parties thereto, except to
the extent specifically limited under the terms of their assignment.

SECTION 9.09. Execution in Counterparts. This Agreement may be executed in any
number of counterparts, each of which when so executed shall be deemed to be an original and all of
which when taken together shall constitute one and the same agreement.

SECTION 9.10. Judgment. (a)  If for the purposes of obtaining judgment in any court
it is necessary to convert a sum due hereunder in U.S. Dollars into another currency, the parties
hereto agree, to the fullest extent that they may effectively do so, that the rate of exchange used
shall be that at which in accordance with normal banking procedures the Purchaser could purchase
U.S. Dollars with such other currency at New York, New York on the Business Day preceding that on
which final judgment is given.

(b) The obligation of each Seller in respect of any sum due from it to the Purchaser hereunder
shall, notwithstanding any judgment in a currency other than U.S. Dollars, be discharged only to
the extent that on the Business Day following receipt by the Purchaser of any sum adjudged to be so
due in such other currency the Purchaser may in accordance with normal banking procedures purchase
U.S. Dollars with such other currency; if the U.S. Dollars so purchased are less than the sum
originally due to the Purchaser in U.S. Dollars, such Seller agrees, as a separate obligation and
notwithstanding any such judgment, to indemnify the Purchaser against such loss, and if the U.S.
Dollars so purchased exceed the sum originally due to the Purchaser in U.S. Dollars, the Purchaser
shall remit to such Seller such excess.

6

[Remainder of page intentionally left blank]

IN WITNESS WHEREOF, the parties have caused this Agreement to be executed by their respective
officers thereunto duly authorized, as of the date first above written.

	 	 	SELLERS: FERRO CORPORATION CORPORATIONBy:      Treasurer

By:      

Treasurer

1000 Lakeside Avenue

Cleveland, OH 44114

Attention: Secretary

Facsimile 1000 Lakeside AvenueCleveland, OH 44114Attention: SecretaryFacsimile No.:
(216) 875-7237

FERRO ELECTRONIC MATERIALS , INC.

By:      

Treasurer

4511 Hyde Park Blvd.

Niagra Falls, NY 14305-0067

	 	 	 
	Attention: Secretary

Facsimile No.: (216)875-7275 INC.By:

====================================

	 	

     Treas

urer

1000 Lakeside AvenueCleveland, OH
44114Attention: SecretaryFacsimile No.: (216)
875-7237

	 	 	PURCHASER: FERRO FINANCE CORPORATIONBy:      Treasurer
CORPORATION

By:      

Treasurer

1000 Lakeside Avenue, Suite ACleveland, OH
44114Attention: SecretaryFacsimile No.: (     )
     

7

A

Cleveland, OH 44114

Attention: Secretary

Facsimile No.: (216) 875-6147

EXHIBIT A

CREDIT AND COLLECTION POLICY

8

EXHIBIT B

LOCK-BOX BANKS

	1.	 	Bank: National City Bank, P.O. Box 5756, Cleveland, OH 44101-0756

	 	 	 	 	 
	Lock-Box No.

	 	Lock-Box Account Number

	 

	 	 	 	 
	 
	 	 	 	 
	Collections Remitted 5831

	 	 	2072964	 
	 

	 	 	 	 

Receivables originated by Ferro Corporation

2. Bank: Mellon Bank, N.A., Three Mellon Bank Center, Room 156-3502, Pittsburgh, PA 15259

ß Lock-Box No. Lock-Box Account Number Collections Remitted 40070 013-7040 Receivables originated
by Ferro Electronic

9

EXHIBIT C

FORM OF

DEFERRED PURCHASE PRICE NOTE

New York, New York

September 28, 2000

FOR VALUE RECEIVED, FERRO FINANCE CORPORATION, an Ohio corporation (the “Purchaser”),
hereby promises to pay to [NAME OF SELLER] (the “Seller”) the principal amount of this
Note, determined as described below, together with interest thereon at a rate per annum equal at
all times to 1.50% per annum above the Eurodollar Rate (as defined in the Sale Agreement) for
periods of one month, in each case in lawful money of the United States of America. Capitalized
terms used herein but not defined herein shall have the meanings assigned to such terms in the
Purchase and Contribution Agreement dated as of September 28, 2000 among the Seller, [Name of other
Seller] and the Purchaser (such agreement, as it may from time to time be amended, restated or
otherwise modified in accordance with its terms, the “Purchase and Contribution
Agreement”). This Note is the note referred to in the definition of “Deferred Purchase Price”
in the Purchase and Contribution Agreement.

The aggregate principal amount of this Note at any time shall be equal to the difference
between (a) the sum of the aggregate principal amount of this Note on the date of the issuance
hereof and each addition to the principal amount of this Note pursuant to the terms of Section 2.02
of the Purchase and Contribution Agreement minus (b) the aggregate amount of all payments made in
respect of the principal amount of this Note, in each case, as recorded on the schedule annexed to
and constituting a part of this Note, but failure to so record shall not affect the obligations of
the Purchaser to the Seller.

The entire principal amount of this Note shall be due and payable one year and one day after
the Facility Termination Date or such later date as may be agreed in writing by the Seller and the
Purchaser. The principal amount of this Note may, at the option of the Purchaser, be prepaid in
whole at any time or in part from time to time. Interest on this Note shall be paid in arrears on
each Settlement Date, at maturity and thereafter on demand. All payments hereunder shall be made
by wire transfer of immediately available funds to such account of the Seller as the Seller may
designate in writing.

Notwithstanding any other provisions contained in this Note, in no event shall the rate of
interest payable by the Purchaser under this Note exceed the highest rate of interest permissible
under applicable law.

The obligations of the Purchaser under this Deferred Purchase Price Note are subordinated in
right of payment, to the extent set forth in Section 2.03(c) of the Purchase and Contribution
Agreement, to the prior payment in full of all Capital, Yield, Fees and other obligations of the
Purchaser under the Sale Agreement.

Notwithstanding any provision to the contrary in this Deferred Purchase Price Note or
elsewhere, other than with respect to payments specifically permitted by Section 2.03(c) of the
Purchase and Contribution Agreement, no demand for any payment may be made hereunder, no payment
shall be due with respect hereto and the Seller shall have no claim for any payment hereunder prior
to the occurrence of the Facility Termination Date and then only on the date, if ever, when all
Capital, Yield, Fees and other obligations owing under the Sale Agreement shall have been paid in
full.

In the event that, notwithstanding the foregoing provision limiting such payment, the Seller
shall receive any payment or distribution on this Deferred Purchase Price Note which is not
specifically permitted by Section 2.03(c) of the Purchase and Contribution Agreement, such payment
shall be received and held in trust by the Seller for the benefit of the entities to whom the
obligations are owed under the Sale Agreement and shall be promptly paid over to such entities.

The Purchaser hereby waives diligence, presentment, demand, protest and notice of any kind
whatsoever.

Neither this Note, nor any right of the Seller to receive payments hereunder, shall, without
the prior written consent of the Purchaser and (so long as the Sale Agreement remains in effect or
any amounts remain outstanding thereunder) the Agent under the Sale Agreement, be assigned,
transferred, exchanged, pledged, hypothecated, participated or otherwise conveyed.

THIS NOTE SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW
YORK.

FERRO FINANCE CORPORATIONBy CORPORATION

	 	 	By:  Title: Treasurer

10

SCHEDULE TO DEFERRED PURCHASE PRICE NOTE

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	Addition to	 	Amount of Principal	 	Unpaid Principal	 	 
	Date	 	Principal Amount	 	Paid or Prepaid	 	Balance	 	Notation Made By

11

EXHIBIT D

FORM OF PURCHASER LOAN NOTE

New York, New York

$______________ , 2000

FOR VALUE RECEIVED,[NAME OF SELLER], a [State of incorporation] corporation (the
“Company”), hereby promises to pay to FERRO FINANCE CORPORATION (the “Lender”), no
later than twelve (12) months from the date hereof or on demand if sooner made, the principal sum
of      Dollars (or such lesser amount as shall equal the aggregate unpaid principal amount
of the Purchaser Loans made by the Lender to the Company under the Purchase and Contribution
Agreement referred to below), and to pay on each Settlement Date interest on the unpaid principal
amount of the Purchaser Loans at a rate per annum equal at all times to 1% per annum above the
Eurodollar Rate (as defined in the Sale Agreement) for periods of one month, in each case in lawful
money of the United States of America and in immediately available funds.

The date and amount of each Purchaser Loan made by the Lender to the Company from the date
hereof until the repayment of all sums due hereunder, and each payment made on account of the
principal thereof, shall be recorded by the Lender on its books and, prior to any transfer of this
Note, endorsed by the Lender on the schedule attached hereto or any continuation thereof.

This Note is one of the Purchaser Loan Notes referred to in the Purchase and Contribution
Agreement (as amended, restated or otherwise modified from time to time, the “Purchase and
Contribution Agreement”) dated as of September 28, 2000 among the Company, [Name of other
Seller] and the Lender, and evidences Purchaser Loans made by the Lender thereunder. Capitalized
terms used in this Note and not defined herein have the respective meanings assigned to them in the
Purchase and Contribution Agreement.

The principal amount of this Note may, at the option of the Company, be prepaid in whole at
any time or in part from time to time.

Notwithstanding any other provisions contained in this Note, in no event shall the rate of
interest payable by the Company under this Note exceed the highest rate of interest permissible
under applicable law.

The Company hereby waives diligence, presentment, demand, protest and notice of any kind
whatsoever with respect to this Note.

In the event the Lender shall refer this Note to an attorney for collection, the Company
agrees to pay, in addition to unpaid principal and interest, all the costs and expenses incurred in
attempting or effecting collection hereunder, including reasonable attorney’s fees, whether or not
suit is instituted.

THIS NOTE SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW
YORK.

[NAME OF SELLER]

By:     Name     

Name:Title:

12

SCHEDULE TO PURCHASER LOAN NOTE

	 	 	 	 	 	 	 	 	 
	Date

	 	Amount of Purchaser

Loan
	 	Amount of Principal

Paid or Prepaid
	 	Unpaid Principal

Balance
	 	

Notation Made By
	 

	 	 
	 	 
	 	 
	 	 

13

EXHIBIT E-1

Approved OECD Countries

1. United Kingdom

2. Germany 

3. Netherlands

4. Ireland

5. Belgium

6. France

7. Italy

8. Australia

9. Japan

10. Austria

11. Switzerland

12. Sweden

13. Spain

14. New Zealand

15. Norway

16. Denmark

14

EXHIBIT E-2

Other Approved Jurisdictions

1. South Korea

2. Mexico

3. Hungary 

4. Czech Republic

5. Taiwan

6. Israel

7. Hong Kong

8. Singapore

9. Malaysia

10. Slovenia

15

EXHIBIT F

SELLER UCC INFORMATION

Name: Ferro Corporation

Address:  1000 Lakeside Avenue

Cleveland, OH 44114

Jurisdiction of Organization: Ohio

UCC Filing Office: Ohio Secretary of State

Name: Ferro Electronic Materials Inc.

Address:  1000 Lakeside Avenue

Cleveland, OH 44114

Jurisdiction of Organization: Delaware

UCC Filing Office: Delaware Secretary of State

16

EXHIBIT G

FORM OF FERRO ELECTRONIC ORDER AND ACKNOWLEDGMENT

17

[See attached.]

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18

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19

EXHIBIT F

SELLER UCC INFORMATION

	 	 	 	 	 
	Name:
	 	Ferro Corporation

	Address:
	 	1000 Lakeside Avenue
	 
	 	Cleveland, OH  44114

	Jurisdiction of Organization:
	 	Ohio

	UCC Filing Office:
	 	Ohio Secretary of State

	Name:
	 	Ferro Electronic Materials Inc.

	Address:
	 	1000 Lakeside Avenue
	 
	 	Cleveland, OH  44114

	Jurisdiction of Organization:
	 	Delaware

	UCC Filing Office:
	 	Delaware Secretary of State

20

EXHIBIT G

FORM OF FERRO ELECTRONIC ORDER ACKNOWLEDGMENT

21

CONFIRMATION OF UNDERTAKING AGREEMENT

June 29, 2006

The undersigned, as undertaking party under the Undertaking Agreement, dated September 28,
2000 (the “Undertaking Agreement”), in favor of Ferro Finance Corporation, hereby consents to the
foregoing Amendment to Purchase and Contribution Agreement dated as of June 29, 2006 (the
“Amendment Agreement”) to the Purchase and Contribution Agreement dated as of September 28, 2000,
and hereby confirms and agrees that, notwithstanding the effectiveness of such Amendment Agreement,
the Undertaking Agreement heretofore executed and delivered by it is, and shall continue to be, in
full force and effect and shall apply to the Purchase and Contribution Agreement, as heretofore
amended, including as amended by the Amendment Agreement, and the Undertaking Agreement is hereby
ratified and confirmed.

FERRO CORPORATION

By:

Rhonda S. Ferguson

Assistant Secretary

22EX-10.2

AMENDED AND RESTATED

RECEIVABLES PURCHASE AGREEMENT

Dated as of June 29, 2006

Among

FERRO FINANCE CORPORATION

as the Seller

and

CAFCO, LLC

as the Investor

and

CITIBANK, N.A.

as a Bank

and

CITICORP NORTH AMERICA, INC.

as the Agent

and

FERRO ELECTRONIC MATERIALS INC.

as an Originator

and

FERRO CORPORATION

as Collection Agent and an Originator

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	TABLE OF CONTENTS
	 	 	 	 	 	 	 	 	 	 	Page
	PRELIMINARY STATEMENT
	 	 	 	 	 	 	 	 	 	 	1	 
	ARTICLE I
	 	DEFINITIONS
	 	 	 	 	 	 	1	 
	 
	 	SECTION 1.01.
	 	Certain Defined Terms
	 	 	1	 
	 
	 	SECTION 1.02.
	 	Other Terms
	 	 	24	 
	ARTICLE II	 	AMOUNTS AND TERMS OF THE PURCHASES
	 	 	24	 
	 
	 	SECTION 2.01.
	 	Purchase Facility
	 	 	24	 
	 
	 	SECTION 2.02.
	 	Making Purchases
	 	 	25	 
	 
	 	SECTION 2.03.
	 	Receivable Interest Computation
	 	 	26	 
	 
	 	SECTION 2.04.
	 	Settlement Procedures
	 	 	26	 
	 
	 	SECTION 2.05.
	 	Fees
	 	 	31	 
	 
	 	SECTION 2.06.
	 	Payments and Computations, Etc.
	 	 	31	 
	 
	 	SECTION 2.07.
	 	Dividing or Combining Receivable Interests
	 	 	32	 
	 
	 	SECTION 2.08.
	 	Increased Costs
	 	 	32	 

	 	 	 	SECTION 2.09. Additional Yield on Receivable Interests Bearing a Eurodollar Rate 33

	 	 	 	 	 	 	 	 	 
	SECTION 2.10.
	 	Security Interest
	 	 	33	 
	SECTION 2.11.
	 	Purchase by Term-Out Banks
	 	 	34	 
	SECTION 2.12.
	 	Interest on Cash Secured Advances
	 	 	34	 
	SECTION 2.13.
	 	Repayment of Cash Secured Advances
	 	 	34	 

	 	 	 	SECTION 2.14. Use of Proceeds; Security Interest in CollateralAdvance Account 34

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	SECTION 2.15.
	 	Sharing of Payments
	 	 	35	 
	 
	 	SECTION 2.16.
	 	Right of Setoff
	 	 	36	 
	ARTICLE III
	 	CONDITIONS OF PURCHASES
	 	 	 	 	 	 	36	 
	 
	 	SECTION 3.01.
	 	[Reserved]	 	 	36	 

	 	 	 	SECTION 3.02. Conditions Precedent to All Purchases and Reinvestments 36

	 	 	 	SECTION 3.03. Conditions Precedent to the Effectiveness ofRestatement and Amendment
37

	 	 	 	 	 	 	 	 	 	 	 	 	 
	ARTICLE IV
	 	REPRESENTATIONS AND WARRANTIES
	 	 	 	 	 	 	38	 
	 
	 	SECTION 4.01.
	 	Representations and Warranties of the Seller
	 	 	38	 
	 
	 	SECTION 4.02.
	 	Representations and Warranties of the CollectionAgent
	 	 	40	 
	ARTICLE V
	 	COVENANTS
	 	 	 	 	 	 	42	 
	 
	 	SECTION 5.01.
	 	Covenants of the Seller
	 	 	42	 
	 
	 	SECTION 5.02.
	 	Covenant of the Seller and the Originators
	 	 	49	 
	ARTICLE VI	 	ADMINISTRATION AND COLLECTIONOF POOL RECEIVABLES
	 	 	49	 
	 
	 	SECTION 6.01.
	 	Designation of Collection Agent
	 	 	49	 
	 
	 	SECTION 6.02.
	 	Duties of Collection Agent
	 	 	50	 
	 
	 	SECTION 6.03.
	 	Certain Rights of the Agent
	 	 	51	 
	 
	 	SECTION 6.04.
	 	Rights and Remedies
	 	 	52	 
	 
	 	SECTION 6.05.
	 	Further Actions Evidencing Purchases
	 	 	52	 
	 
	 	SECTION 6.06.
	 	Covenants of the Collection Agent and theOriginators
	 	 	53	 
	 
	 	SECTION 6.07.
	 	Indemnities by the Collection Agent
	 	 	53	 
	 
	 	SECTION 6.08.
	 	Cash Collateral Account
	 	 	54	 
	 
	 	SECTION 6.09.
	 	Collateral Advance Account
	 	 	55	 
	ARTICLE VII
	 	EVENTS OF TERMINATION
	 	 	 	 	 	 	56	 
	 
	 	SECTION 7.01.
	 	Events of Termination
	 	 	56	 
	ARTICLE VIII
	 	THE AGENT
	 	 	 	 	 	 	59	 
	 
	 	SECTION 8.01.
	 	Authorization and Action
	 	 	59	 
	 
	 	SECTION 8.02.
	 	Agent’s Reliance, Etc.
	 	 	59	 
	 
	 	SECTION 8.03.
	 	CNAI and Affiliates
	 	 	59	 
	 
	 	SECTION 8.04.
	 	Bank’s Purchase Decision
	 	 	60	 
	 
	 	SECTION 8.05.
	 	Indemnification of Agent
	 	 	60	 
	ARTICLE IX
	 	INDEMNIFICATION
	 	 	 	 	 	 	60	 
	 
	 	SECTION 9.01.
	 	Indemnities by the Seller
	 	 	60	 
	ARTICLE X
	 	MISCELLANEOUS
	 	 	 	 	 	 	62	 
	 
	 	SECTION 10.01.
	 	Amendments, Etc.
	 	 	62	 
	 
	 	SECTION 10.02.
	 	Notices, Etc.
	 	 	62	 
	 
	 	SECTION 10.03.
	 	Assignability
	 	 	62	 
	 
	 	SECTION 10.04.
	 	Costs, Expenses and Taxes
	 	 	65	 
	 
	 	SECTION 10.05.
	 	No Proceedings; Waiver of Consequential Damages
	 	 	66	 
	 
	 	SECTION 10.06.
	 	Confidentiality
	 	 	66	 
	 
	 	SECTION 10.07.
	 	GOVERNING LAW
	 	 	67	 
	 
	 	SECTION 10.08.
	 	Execution in Counterparts
	 	 	67	 
	 
	 	SECTION 10.09.
	 	Survival of Termination
	 	 	67	 
	 
	 	SECTION 10.10.
	 	Consent to Jurisdiction
	 	 	67	 
	 
	 	SECTION 10.11.
	 	WAIVER OF JURY TRIAL
	 	 	68	 
	 
	 	SECTION 10.12.
	 	Judgment
	 	 	68	 
	 
	 	SECTION 10.13.
	 	Acknowledgment
	 	 	68	 

	 	 	 	 	 
	 	 	 	 	SCHEDULES
	SCHEDULE I-

SCHEDULE II

SCHEDULE III-A

SCHEDULE III-B

SCHEDULE IV

	 	Lock-Box Banks

-

-

-

-
	 	

Credit and Collection Policy

Approved OECD Countries

Other Approved Jurisdictions

Seller UCC Information

ANNEXES

	 	 	 	 	 
	ANNEX A-1

ANNEX A-2

ANNEX A-3

ANNEX B

ANNEX C

ANNEX D

ANNEX E

ANNEX F

ANNEX G

	 	-

-

-

-

-

-

-

-

-
	 	Form of Monthly Report

Form of Weekly Report

Form of Daily Report

Form of Lock-Box Agreement

Form of Opinion of Counsel to the Seller

Form of Drawdown Notice

Form of Undertaking Agreement

Agreed Upon Procedures

Form of Collateral Advance Account Agreement

1

AMENDED AND RESTATED

RECEIVABLES PURCHASE AGREEMENT

Dated as of June 29, 2006

FERRO FINANCE CORPORATION, an Ohio corporation (the “Seller”), CAFCO, LLC, a Delaware
limited liability company, CITIBANK, N.A., CITICORP NORTH AMERICA, INC., a Delaware corporation
(“CNAI”), as agent (the “Agent”) for the Investors and the Banks (each as defined
herein), FERRO ELECTRONIC MATERIALS INC., a Delaware corporation, as an Originator, and FERRO
CORPORATION, an Ohio corporation, as Collection Agent and an Originator, agree as follows:

PRELIMINARY STATEMENT. The Seller, the Originators, the Agent, the Collection Agent and CAFCO
(as such terms are herein defined) are parties to that certain Receivables Purchase Agreement dated
as of September 28, 2000 as heretofore amended (as so amended, the “Original RPA”). The
Seller has acquired, and may continue to acquire, Receivables from the Originators (as hereinafter
defined), either by purchase or by contribution to the capital of the Seller, as determined from
time to time by the Seller and each Originator. The Seller has sold and is prepared to continue to
sell undivided fractional ownership interests (referred to herein as “Receivable
Interests”) in the Receivables. CAFCO may, in its sole discretion, purchase such Receivable
Interests, and the Banks are prepared to purchase such Receivable Interests, in each case on the
terms set forth herein. The parties hereto wish to amend and restate the Original RPA in its
entirety and to add Citibank, N.A. as a party to such amended and restated agreement. Accordingly,
the parties agree that the Original RPA is amended and restated in its entirety as follows:

ARTICLE 1

DEFINITIONS

SECTION 1.1. Certain Defined Terms. As used in this Amended and Restated Receivables
Purchase Agreement (this “Agreement”), the following terms shall have the following
meanings (such meanings to be equally applicable to both the singular and plural forms of the terms
defined):

“2005 Downgrade Event” means the BB Downgrade Event which occurred on June 2, 2005, as
a result of the downgrade to BB by S&P of Ferro Corporation’s long term public senior unsecured
non-credit-enhanced debt securities.

“2006 Downgrade Events” means (i) the BB Downgrade Event which occurred on March 20,
2006, as a result of Moody’s downgrading the long term public senior unsecured non-credit-enhanced
debt securities of Ferro Corporation to B1 and then withdrawing its rating on such debt securities,
and (ii) the further downgrading by S&P on March 31, 2006 of the long term public senior unsecured
non-credit-enhanced debt securities of Ferro Corporation to B.

“Adjusted Eurodollar Rate” means, for any Fixed Period, an interest rate per
annum equal to the rate per annum obtained by dividing (i) the Eurodollar Rate for such Fixed
Period by (ii) a percentage equal to 100% minus the Eurodollar Rate Reserve Percentage for such
Fixed Period.

“Adverse Claim” means a lien, security interest or other charge or encumbrance, or any
other type of preferential arrangement.

“Affected Person” has the meaning specified in Section 2.08(a).

“Affiliate” means, as to any Person, any other Person that, directly or indirectly, is
in control of, is controlled by or is under common control with such Person or is a director or
officer of such Person.

“Affiliated Obligor” means any Obligor that is an Affiliate of another Obligor.

“Agent’s Account” means the special account (account number 4063-6695) of the Agent
maintained at the office of Citibank at 399 Park Avenue, New York, New York.

“Allocation Percentage” means, at any time, the sum of the Receivable Interest
percentages at such time, based on the information in the most recent Daily Report.

“Alternate Base Rate” means a fluctuating interest rate per annum as shall be in
effect from time to time, which rate shall be at all times equal to the highest of:

(i) the rate of interest announced publicly by Citibank in New York, New York,
from time to time as Citibank’s base rate;

(ii) 1/2 of one percent above the latest three-week moving average of
secondary market morning offering rates in the United States for three-month
certificates of deposit of major United States money market banks, such three-week
moving average being determined weekly on each Monday (or, if such day is not a
Business Day, on the next succeeding Business Day) for the three-week period ending
on the previous Friday by Citibank on the basis of such rates reported by
certificate of deposit dealers to and published by the Federal Reserve Bank of New
York or, if such publication shall be suspended or terminated, on the basis of
quotations for such rates received by Citibank from three New York certificate of
deposit dealers of recognized standing selected by Citibank, in either case adjusted
to the nearest 1/4 of one percent or, if there is no nearest 1/4 of one percent, to
the next higher 1/4 of one percent; or

(iii) the Federal Funds Rate.

“Amortization Period” means the period commencing on the day following the last
day of the Revolving Period and ending on the later of the Facility Termination Date and the date
on which no Capital of or Yield on any Receivable Interest shall be outstanding and all other
amounts owed by the Seller to the Investor, the Banks, the Agent and the Collection Agent shall be
paid in full.

“APC Receivable” means any receivable created or originated by the Advance Polymer
Compounding Division of Ferro Corporation.

“Approved OECD Country” means each of the countries listed on Schedule III-A hereto,
as such Schedule may be amended from time to time upon request of the Seller or the Collection
Agent, with the prior written approval of the Agent. Additionally, the Agent may remove countries
from such Schedule at any time, as it determines in its sole discretion, upon prior written notice
to the Seller and the Collection Agent.

“Asset Purchase Agreement” means (a) in the case of any Bank other than Citibank, the
asset purchase agreement entered into by such Bank concurrently with the Assignment and Acceptance
pursuant to which it became party to this Agreement and (b) in the case of Citibank, the secondary
market agreement, asset purchase agreement or other similar liquidity agreement entered into by
Citibank or any other Eligible Assignee for the benefit of CAFCO, to the extent relating to the
sale or transfer of interests in Receivable Interests.

“Assignee Rate” for any Fixed Period for any Receivable Interest means an interest
rate per annum equal to the sum of the Eurodollar Rate for such Fixed Period plus the greater of
(x) 1.50% per annum and (y) 0.25% per annum plus the “Applicable Margin” then applicable to “LIBO
Rate Loans” under the Credit Agreement (terms in this clause (y) having the meanings set forth in
the Credit Agreement); provided, however, that in case of:

(i) any Fixed Period on or prior to the first day of which an Investor or Bank
shall have notified the Agent that the introduction of or any change in or in the
interpretation of any law or regulation makes it unlawful, or any central bank or
other governmental authority asserts that it is unlawful, for such Investor or Bank
to fund such Receivable Interest at the Assignee Rate set forth above (and such
Investor or Bank shall not have subsequently notified the Agent that such
circumstances no longer exist),

(ii) any Fixed Period of one to (and including) 29 days (it being understood
and agreed that this clause (ii) shall not be applicable to a Fixed Period for which
Yield is to be computed by reference to the Eurodollar Rate that is intended to have
a one-month duration but due solely to LIBOR interest period convention the duration
thereof will be less than 30 days),

(iii) any Fixed Period as to which the Agent does not receive notice, by no
later than 12:00 noon (New York City time) on the third Business Day preceding the
first day of such Fixed Period, that the related Receivable Interest will not be
funded by issuance of commercial paper, or

(iv) any Fixed Period for a Receivable Interest the Capital of which
allocated to the Investors or the Banks is less than $500,000,

the “Assignee Rate” for such Fixed Period shall be an interest rate per annum equal to the
Alternate Base Rate in effect from time to time during such Fixed Period; provided
further that the Agent and the Seller may agree in writing from time to time upon a
different “Assignee Rate”.

“Assignment and Acceptance” means an assignment and acceptance agreement entered into
by a Bank and an Eligible Assignee and accepted by the Agent, pursuant to which such Eligible
Assignee may become a party to this Agreement, in a form acceptable to the Agent and approved by
the Seller (which approval by the Seller shall not be unreasonably withheld or delayed and shall
not be required if an Event of Termination or an Incipient Event of Termination has occurred and is
continuing).

“Average Maturity” means at any time that period of days equal to the average maturity
of the Pool Receivables calculated by the Collection Agent in the then most recent Monthly Report;
provided if the Agent shall disagree with any such calculation, the Agent may recalculate
such Average Maturity.

“Bank Commitment” of any Bank means, (a) with respect to Citibank, $100,000,000 or
such amount as reduced or increased by any Assignment and Acceptance entered into between Citibank
and other Banks; or (b) with respect to a Bank that has entered into an Assignment and Acceptance,
the amount set forth therein as such Bank’s Bank Commitment, in each case as such amount may be
reduced or increased by an Assignment and Acceptance entered into between such Bank and an Eligible
Assignee and accepted by the Agent, and as may be further reduced (or terminated) pursuant to the
next sentence. Any reduction (or termination) of the Purchase Limit pursuant to the terms of this
Agreement shall reduce ratably (or terminate) each Bank’s Bank Commitment.

“Banks” means Citibank and each Eligible Assignee that shall become a party to this
Agreement pursuant to Section 10.03.

“BB Downgrade Event” means any of the long term public senior unsecured
non-credit-enhanced debt securities of Ferro Corporation are rated below BB+ by S&P or Ba1 by
Moody’s, or if Ferro Corporation does not have long term public senior unsecured
non-credit-enhanced debt ratings from both S&P and Moody’s, Ferro Corporation is judged by the
Agent, in its sole discretion, to be of credit quality below (with respect to each missing rating)
BB+ by S&P or Ba1 by Moody’s.

“Business Day” means any day on which (i) banks are not authorized or required to
close in New York, New York or Cleveland, Ohio, and (ii) if this definition of “Business Day” is
utilized in connection with the Eurodollar Rate, dealings are carried out in the London interbank
market.

“CAFCO” means CAFCO, LLC and any successor or assign of CAFCO that is a
receivables investment company which in the ordinary course of its business issues commercial paper
or other securities to fund its acquisition and maintenance of receivables.

“Capital” of any Receivable Interest means the original amount paid to the Seller for
such Receivable Interest at the time of its purchase by CAFCO or a Bank pursuant to this Agreement,
or such amount divided or combined in accordance with Section 2.07, in each case reduced from time
to time by Collections distributed on account of such Capital pursuant to Section 2.04(e);
provided that if such Capital shall have been reduced by any distribution and thereafter
all or a portion of such distribution is rescinded or must otherwise be returned for any reason,
such Capital shall be increased by the amount of such rescinded or returned distribution, as though
it had not been made.

“Cash Collateral Account” means account no. 657 547 879 maintained by the Collection
Agent, in the name of the Seller, for the benefit of the Investors, and under the sole dominion and
control of the Agent, with the Cash Collateral Bank.

“Cash Collateral Agreement” means that certain Cash Collateral Account and Control
Agreement dated May 29, 2002 by and among Ferro Corporation, the Collection Agent and the Agent, as
the same has been or may be amended, restated, supplemented or otherwise modified from time to
time.

“Cash Collateral Bank” means National City Bank.

“Cash Secured Advance” means, in respect of any Bank, without duplication, the
aggregate amount of the proceeds (a) (i) of the advance, if any, made by such Bank pursuant to
Section 2.01(d) and (ii) of such Bank’s ratable share of any applications of Collections of
Receivables during the Term Period for such Bank to reduce the “Capital” in respect of the
Receivable Interest hereunder and (b) on deposit at such time in the Collateral Advance Account
(including any such proceeds invested by the Agent at such time in Eligible Investments pursuant to
Section 6.09(c)), it being understood that the amount of such Bank’s Cash Secured Advance shall be
decreased by such Bank’s ratable share of the funds paid from time to time from the Collateral
Advance Account to the Seller to make a purchase of an interest in the Receivable Interest from
time to time during the Term Period for such Bank.

“Cash Secured Advance Commencement Date” means, with respect to any Bank, the same day
as the Term-Out Bank Purchase Date for such Bank, provided that the Cash Secured Advance
Commencement Date shall occur if, but only if, the Facility Termination Date shall not have
occurred on or prior to such date and no Event of Termination or Incipient Event of Termination
exists on such date.

“Citibank” means Citibank, N.A., a national banking association.

“Class 2 Special Event” means any of the long term public senior unsecured
non-credit-enhanced debt securities of Ferro Corporation are rated below B by S&P (if rated by S&P)
or B2 by Moody’s (if rated by Moody’s), or if Ferro Corporation does not have long term public
senior unsecured non-credit-enhanced debt ratings from both S&P and Moody’s, Ferro Corporation is
judged by the Agent, in its sole discretion, to be of credit quality below (with respect to each
missing rating) B by S&P or B2 by Moody’s.

“Collateral Advance Account” has the meaning specified in Section 6.09(a).

“Collateral Advance Account Agreement” means an agreement among the Collection Agent,
the Seller, the Agent and the Collateral Advance Account Bank in substantially the form of Annex G
hereto, and otherwise in form and substance satisfactory to the Agent.

“Collateral Advance Account Bank” has the meaning specified in Section 6.09(a).

“Collateral Advance Account Direction” has the meaning specified in Section 6.09(b).

“Collection Agent” means at any time the Person then authorized pursuant to
Section 6.01 to administer and collect Pool Receivables.

“Collection Agent Fee” has the meaning specified in Section 2.05(a).

“Collection Delay Period” means 10 days or such other number of days as the Agent may
select upon three Business Days’ notice to the Seller.

“Collections” means, with respect to any Receivable, all cash collections and other
cash proceeds of such Receivable, including, without limitation, all cash proceeds of Related
Security with respect to such Receivable, and any Collection of such Receivable deemed to have been
received pursuant to Section 2.04.

“Commitment Termination Date” means the earlier of (a) June 5, 2007, unless,
prior to such date (or the date so extended pursuant to this clause), upon the Seller’s request,
made not more than 45 days prior to the then Commitment Termination Date, one or more Banks having
Bank Commitments equal to 100% of the Purchase Limit shall in their sole discretion consent, which
consent shall be given not more than 30 days prior to the then Commitment Termination Date, to the
extension of the Commitment Termination Date to a date occurring not more than 364 days after the
then Commitment Termination Date; provided, however, that any failure of any Bank
to respond to the Seller’s request for such extension shall be deemed a denial of such request by
such Bank and (b) the Facility Termination Date; provided, however, that if, and
only if, there shall have occurred a Cash Secured Advance Commencement Date for any Bank, the
Commitment Termination Date for such Bank shall mean the earlier of June 2, 2009 and the date
referenced in the preceding clause (b).

“Concentration Limit” for any Obligor means at any time 3.25% (“Normal
Concentration Limit”), or such other percentage (“Special Concentration Limit”) for
such Obligor designated by the Agent in a writing delivered to the Seller; provided that in
the case of an Obligor with any Affiliated Obligor, the Concentration Limit shall be calculated as
if such Obligor and such Affiliated Obligor are one Obligor; provided further that
the Agent may cancel any Special Concentration Limit upon three Business Days’ notice to the
Seller.

“Contract” means an agreement between an Originator and an Obligor, substantially in
the form of one of the written contracts or (in the case of any open account agreement) one of the
invoices approved by the Agent, pursuant to or under which such Obligor shall be obligated to pay
for merchandise, insurance or services from time to time.

“CP Fixed Period Date” means, for any Receivable Interest, the date of purchase of
such Receivable Interest and thereafter the tenth day of each calendar month (or, if such day is
not a Business Day, the immediately succeeding Business Day) or any other day as shall have been
agreed to in writing by the Agent and the Seller prior to the first day of the preceding Fixed
Period for such Receivable Interest or, if there is no preceding Fixed Period, prior to the first
day of such Fixed Period.

“Credit Agreement” means the Credit Agreement dated as of June 6, 2006, among Ferro
Corporation and certain of its designated subsidiaries from time to time party thereto, as
borrowers, various financial institutions and other persons from time to time party thereto, as
lenders, Credit Suisse, Cayman Islands Branch, as term loan administrative agent, National City
Bank, as the revolving loan administrative agent and the collateral agent, and Keybank National
Association, as the documentation agent, as the same may be amended, restated, modified or
supplemented from time to time, provided, that, for the purposes of determining
whether an event of default under the Credit Agreement has occurred as described in Section 7.01(o)
hereof, no effect shall be given to any waiver of any breach of any financial covenant contained in
the Credit Agreement that has been granted by the lenders party to the Credit Agreement.

“Credit and Collection Policy” means those receivables credit and collection policies
and practices of the Seller in effect on the date of this Agreement and described in Schedule II
hereto, as modified in compliance with this Agreement.

“Cure Period” means the period beginning on and including a Pool Non-compliance Date
and ending on but excluding the earlier of (a) the first date thereafter on which the Net
Receivables Pool Balance equals or exceeds the Required Net Receivables Pool Balance and (b) the
fifth consecutive Business Day following the occurrence of such Pool Non-compliance Date.

“Daily Report” means a report in substantially the form of Annex A-3 hereto and
containing such additional information as the Agent may reasonably request from time to time,
furnished by the Collection Agent to the Agent pursuant to Section 6.02(h), following the
occurrence of a BB Downgrade Event other than the 2005 Downgrade Event or the 2006 Downgrade
Events.

“Debt” means (i) indebtedness for borrowed money, (ii) obligations evidenced by
bonds, debentures, notes or other similar instruments, (iii) obligations to pay the deferred
purchase price of property or services, (iv) obligations as lessee under leases which shall have
been or should be, in accordance with generally accepted accounting principles, recorded as capital
leases, and (v) obligations under direct or indirect guaranties in respect of, and obligations
(contingent or otherwise) to purchase or otherwise acquire, or otherwise to assure a creditor
against loss in respect of, indebtedness or obligations of others of the kinds referred to in
clauses (i) through (iv) above.

“Default Ratio” means the ratio (expressed as a percentage) computed as of the last
day of each calendar month by dividing (i) the aggregate Outstanding Balance of all Originator
Receivables that were Defaulted Receivables on such day or that would have been Defaulted
Receivables on such day had they not been written off the books of the relevant Originator or the
Seller during such month by (ii) the aggregate Outstanding Balance of all Originator Receivables on
such day.

“Defaulted Receivable” means an Originator Receivable:

(i) as to which any payment, or part thereof, remains unpaid for 90 or more
days from the original due date for such payment;

(ii) as to which the Obligor thereof or any other Person obligated thereon or
owning any Related Security in respect thereof has taken any action, or suffered any
event to occur, of the type described in Section 7.01(g); or

(iii) which, consistent with the Credit and Collection Policy, would be
written off the relevant Originator’s or the Seller’s books as uncollectible.

“Deferred Purchase Price” has the meaning specified in the Originator Purchase
Agreement.

“Deposit Date” means each day on which any Collections are deposited in any of the
Lock-Box Accounts or on which the Collection Agent shall receive Collections of Receivables.

“Designated Obligor” means, at any time, each Obligor; provided,
however, that any Obligor shall cease to be a Designated Obligor upon three Business Days’
notice by the Agent to the Seller.

“Diluted Receivable” means that portion (and only that portion) of any
Originator Receivable which is either (a) reduced or canceled as a result of (i) any defective,
rejected or returned merchandise or services or any failure by the relevant Originator to deliver
any merchandise or provide any services or otherwise to perform under the underlying Contract or
invoice, (ii) any change in the terms of or cancellation of, a Contract or invoice or any cash
discount, discount for quick payment or other adjustment by the relevant Originator which reduces
the amount payable by the Obligor on the related Originator Receivable (except any such change or
cancellation resulting from or relating to the financial inability to pay or insolvency of the
Obligor of such Originator Receivable) or (iii) any set-off by an Obligor in respect of any claim
by such Obligor as to amounts owed by it on the related Originator Receivable (whether such claim
arises out of the same or a related transaction or an unrelated transaction) or (b) subject to any
specific dispute, offset, counterclaim or defense whatsoever (except the discharge in bankruptcy of
the Obligor thereof); provided that Diluted Receivables are calculated assuming that all
chargebacks are resolved in the Obligor’s favor and do not include contractual adjustments to the
amount payable by an Obligor that are eliminated from the Originator Receivables balance sold to
the Seller through a reduction in the purchase price for the related Originator Receivable.

“Dilution Horizon Factor” means, as of any date, a ratio computed by dividing (i) the
aggregate original Outstanding Balance of all Originator Receivables created by the Originators
during the two most recently ended calendar months by (ii) the Outstanding Balance of Originator
Receivables (other than Defaulted Receivables) as at the last day of the most recently ended
calendar month.

“Dilution Percentage” means, as of any date, (I) absent the existence of a Special
Event or a Class 2 Special Event, the product of (x) 1.2, multiplied by (y) the highest three month
average Dilution Ratio for each three-month period ending on the last day of the twelve most recent
calendar months, (II) during the existence of a Special Event, but absent the existence of a
Class 2 Special Event, the product of (a) the sum of (i) the product of (x) two, multiplied by
(y) the average of the Dilution Ratios for each of the twelve most recently ended calendar months,
plus (ii) the Dilution Volatility Ratio as at the last day of the most recently ended calendar
month, multiplied by (b) the Dilution Horizon Factor as of such date, and (III) during the
existence of a Class 2 Special Event, the product of (a) the sum of (i) the product of (x) 2.25,
multiplied by (y) the average of the Dilution Ratios for each of the twelve most recently ended
calendar months, plus (ii) the Dilution Volatility Ratio as at the last day of the most recently
ended calendar month, multiplied by (b) the Dilution Horizon Factor as of such date.

“Dilution Ratio” means, as of any date, the ratio (expressed as a percentage) computed
for the most recently ended calendar month by dividing (i) the aggregate amount of Originator
Receivables which became Diluted Receivables during such calendar month by (ii) the aggregate
Outstanding Balance (in each case, at the time of creation) of all Originator Receivables created
during the second calendar month immediately preceding such calendar month.

“Dilution Reserve” means, for any Receivable Interest on any date, an amount equal to:

 DP  x (C + YFR)

1 — DP

where:

	 	 	 	DP = the Dilution Percentage for such Receivable
Interest on such date.

	 	 	 	C = the Capital of such Receivable Interest on
such date.

	 	 	 	YFR = the Yield and Fee Reserve for such Receivable
Interest on such date.

“Dilution Volatility Ratio” means, as of any date, a ratio (expressed as a
percentage) equal to the product of (i) the highest of the Dilution Ratios calculated for each of
the twelve most recently ended calendar months minus the average of the Dilution Ratios for each of
the twelve most recently ended calendar months, and (ii) a ratio calculated by dividing the highest
of the Dilution Ratios calculated for each of the twelve most recently ended calendar months by the
average of the Dilution Ratios for each of the twelve most recently ended calendar months.

“Drawdown Notice” means a letter in substantially the form of Annex D hereto executed
and delivered by the Seller to the Agent, as such form may be amended or restated in accordance
with the terms thereof.

“Eligible Assignee” means (i) CNAI or any of its Affiliates, (ii) any Person managed
by Citibank, CNAI or any of their Affiliates, or (iii) any financial or other institution
acceptable to the Agent and approved by the Seller (which approval by the Seller shall not be
unreasonably withheld or delayed and shall not be required if an Event of Termination or an
Incipient Event of Termination has occurred and is continuing).

“Eligible Investments” means book-entry securities entered on the books of the
registrar of such securities and held in the name or on behalf of the Agent, negotiable instruments
or securities represented by instruments in bearer or registered form (registered in the name of
the Agent or its nominee) which evidence:

(1) readily marketable direct obligations of the Government of the United States or any agency
or instrumentality thereof or obligations unconditionally guaranteed by the full faith and credit
of the United States;

(2) insured demand deposits, time deposits or certificates of deposit of any commercial bank
that (i) is a member of the Federal Reserve System, (ii) issues (or the parent of which issues)
commercial paper rated, at the time of the investment or contractual commitment to invest therein,
as described in clause (d), (iii) is organized under the laws of the United States or any state
thereof and (iv) has combined capital and surplus of at least $500,000,000;

(3) repurchase obligations with a term of not more than ten days for underlying securities of
the types described in clauses (a) and (b) above entered into with any bank of the type described
in clause (b) above;

(4) commercial paper (maturing no later than the Business Day prior to the first Settlement
Date following the date of purchase) having, at the time of the investment or contractual
commitment to invest therein, the highest short-term rating from each of S&P and Moody’s;

(5) investments in no-load money market funds having a rating from each rating agency rating
such fund in its highest investment category (including such funds for which the Agent or any of
its Affiliates is investment manager or advisor); and

(6) any other investments agreed upon between the Seller and the Agent.

“Eligible Receivable” means, at any time, a Receivable:

(i) the Obligor of which is a resident of the United States (including,
without limitation, Puerto Rico), Canada, an Approved OECD Country or an Other
Approved Jurisdiction, provided that (A) the aggregate Outstanding Balance
of all Eligible Receivables having Obligors which are residents of an Approved OECD
Country or an Other Approved Jurisdiction may not exceed 20% of the then outstanding
Capital of all Receivable Interests, (B) the aggregate Outstanding Balance of all
Eligible Receivables having Obligors which are residents of an Other Approved
Jurisdiction may not exceed 10% of the then outstanding Capital of all Receivable
Interests and (C) with respect to each country which is an Other Approved
Jurisdiction, the aggregate Outstanding Balance of all Eligible Receivables having
Obligors which are residents of such country may not exceed (1) 5% of the then
outstanding Capital of all Receivable Interests, at any time that the sovereign
long-term debt rating of such country is at least A by S&P and at least A2 by
Moody’s, and (2) 3.3% of the then outstanding Capital of all Receivable Interests,
at any time that the sovereign long-term debt rating of such country is not at
least A by S&P and at least A2 by Moody’s;

(ii) the Obligor of which is not an Affiliate of any of the parties hereto and
is not a government or a governmental subdivision or agency;

(iii) the Obligor of which, at the time of the initial creation of an interest
therein under this Agreement, is a Designated Obligor and is not the Obligor of any
Defaulted Receivables which in the aggregate constitute 10% or more of the aggregate
Outstanding Balance of all Receivables of such Obligor;

(iv) which at the time of the initial creation of an interest therein under
this Agreement is not a Defaulted Receivable;

(v) which, according to the Contract related thereto, is required to be paid
in full either (A) within not more than 30 days of the original billing date
therefor or (B) within more than 30 but no more than 90 days of the original billing
date therefor if the aggregate Outstanding Balance of such Receivable and all other
Receivables having similar payment terms does not exceed 25% of the then Outstanding
Balance of all Pool Receivables at such time;

(vi) which is an obligation representing all or part of the sales price of
merchandise, insurance or services within the meaning of Section 3(c)(5) of the
Investment Company Act of 1940, as amended, and the nature of which is such that its
purchase with the proceeds of notes would constitute a “current transaction” within
the meaning of Section 3(a)(3) of the Securities Act of 1933, as amended;

(vii) which is an “account” within the meaning of Article 9 of the UCC
of the applicable jurisdictions governing the perfection of the interest created by
a Receivable Interest;

(viii) which is denominated and payable only in United States dollars in the
United States;

(ix) which arises under a Contract which, together with such Receivable, is in
full force and effect and constitutes the legal, valid and binding obligation of the
Obligor of such Receivable and is not subject to any Adverse Claim or any dispute,
offset, counterclaim or defense whatsoever (except the potential discharge in
bankruptcy of such Obligor);

(x) which, together with the Contract related thereto, does not contravene in
any material respect any laws, rules or regulations applicable thereto (including,
without limitation, laws, rules and regulations relating to usury, consumer
protection, truth in lending, fair credit billing, fair credit reporting, equal
credit opportunity, fair debt collection practices and privacy) and with respect to
which none of the Seller, the Originators or the Obligor is in violation of any such
law, rule or regulation in any material respect;

(xi) which arises under a Contract which (A) does not require the Obligor
thereunder to consent to the transfer, sale or assignment of the rights and duties
of the Seller or the relevant Originator thereunder and (B) does not contain a
confidentiality provision that purports to restrict the ability of the Agent, the
Investors or the Banks to exercise their rights under this Agreement, including,
without limitation, their right to review the Contract;

(xii) which was generated in the ordinary course of the relevant Originator’s
business;

(xiii) which, at the time of the initial creation of an interest therein under
this Agreement, has not been extended, rewritten or otherwise modified from the
original terms thereof;

(xiv) which (A) satisfies all applicable requirements of the Credit and
Collection Policy and (B) complies with such other criteria and requirements (other
than those relating to the collectibility of such Receivable) as the Agent may from
time to time specify to the Seller upon 30 days’ notice; and

(xv) as to which, at or prior to the time of the initial creation of an
interest therein under this Agreement, the Agent has not notified the Seller that
such Receivable (or class of Receivables) is no longer acceptable for purchase by
CAFCO and the Banks hereunder.

“E-Mail Seller Report” has the meaning specified in Section 6.02(g).

“ERISA” means the Employee Retirement Income Security Act of 1974, as amended from
time to time, and the regulations promulgated and rulings issued thereunder.

“Eurocurrency Liabilities” has the meaning assigned to that term in Regulation D of
the Board of Governors of the Federal Reserve System, as in effect from time to time.

“Eurodollar Rate” means, for any Fixed Period, an interest rate per annum equal to the
rate per annum at which deposits in U.S. dollars are offered by the principal office of Citibank in
London, England to prime banks in the London interbank market at 11:00 A.M. (London Time) two
Business Days before the first day of such Fixed Period in an amount substantially equal to the
Capital associated with such Fixed Period on such first day and for a period equal to such Fixed
Period.

“Eurodollar Rate Reserve Percentage” of any Investor or Bank for any Fixed Period in
respect of which Yield is computed by reference to the Eurodollar Rate means the reserve percentage
applicable two Business Days before the first day of such Fixed Period under regulations issued
from time to time by the Board of Governors of the Federal Reserve System (or any successor) (or if
more than one such percentage shall be applicable, the daily average of such percentages for those
days in such Fixed Period during which any such percentage shall be so applicable) for determining
the maximum reserve requirement (including, without limitation, any emergency, supplemental or
other marginal reserve requirement) for such Investor or Bank with respect to liabilities or assets
consisting of or including Eurocurrency Liabilities (or with respect to any other category of
liabilities that includes deposits by reference to which the interest rate on Eurocurrency
Liabilities is determined) having a term equal to such Fixed Period.

“Event of Termination” has the meaning specified in Section 7.01.

“Excess Interest” means, in respect of Cash Secured Advances at any time, the excess
of (i) the aggregate unpaid accrued interest on the Cash Secured Advances at such time over (ii)
the aggregate interest and dividends received by the Agent in respect of the Term-Out Bank
Collateral and available for withdrawal from the Collateral Advance Account at such time.

“Facility Termination Date” means the earliest of (i) June 2, 2009 or (ii) the date
determined pursuant to Section 7.01 or (iii) the date the Purchase Limit reduces to zero pursuant
to Section 2.01(b).

“Federal Funds Rate” means, for any period, a fluctuating interest rate per annum
equal for each day during such period to the weighted average of the rates on overnight Federal
funds transactions with members of the Federal Reserve System arranged by Federal funds brokers, as
published for such day (or, if such day is not a Business Day, for the next preceding Business Day)
by the Federal Reserve Bank of New York, or, if such rate is not so published for any day which is
a Business Day, the average of the quotations for such day on such transactions received by the
Agent from three Federal funds brokers of recognized standing selected by it.

“Fee Agreement” has the meaning specified in Section 2.05(b).

“Fees” has the meaning specified in Section 2.05(b).

“Fixed Period” means, with respect to any Receivable Interest:

(a) in the case of any Fixed Period in respect of which Yield is computed by reference to the
Investor Rate, each successive period commencing on each CP Fixed Period Date for such Receivable
Interest and ending on the next succeeding CP Fixed Period Date for such Receivable Interest; and

(b) in the case of any Fixed Period in respect of which Yield is computed by reference to the
Assignee Rate, each successive period of from one to and including 29 days, or a period of one, two
or three months, as the Seller shall select and the Agent may approve on notice by the Seller
received by the Agent (including notice by telephone, confirmed in writing) not later than 11:00
A.M. (New York City time) on (x) the day which occurs three Business Days before the first day of
such Fixed Period (in the case of Fixed Periods in respect of which Yield is computed by reference
to the Eurodollar Rate) or (y) the first day of such Fixed Period (in the case of Fixed Periods in
respect of which Yield is computed by reference to the Alternate Base Rate), each such Fixed Period
for such Receivable Interest to commence on the last day of the immediately preceding Fixed Period
for such Receivable Interest (or, if there is no such Fixed Period, on the date of purchase of such
Receivable Interest), except that if the Agent shall not have received such notice, or the
Agent and the Seller shall not have so mutually agreed, before 11:00 A.M. (New York City time) on
such day, such Fixed Period shall be one day;

provided, however, that:

(i) any Fixed Period (other than of one day) which would otherwise end on a
day which is not a Business Day shall be extended to the next succeeding Business
Day (provided, however, if Yield in respect of such Fixed Period is
computed by reference to the Eurodollar Rate, and such Fixed Period would otherwise
end on a day which is not a Business Day, and there is no subsequent Business Day in
the same calendar month as such day, such Fixed Period shall end on the next
preceding Business Day);

(ii) in the case of any Fixed Period of one day, (A) if such Fixed Period is
the initial Fixed Period for a Receivable Interest, such Fixed Period shall be the
day of the purchase of such Receivable Interest; (B) any subsequently occurring
Fixed Period which is one day shall, if the immediately preceding Fixed Period is
more than one day, be the last day of such immediately preceding Fixed Period and,
if the immediately preceding Fixed Period is one day, be the day next following such
immediately preceding Fixed Period; and (C) if such Fixed Period occurs on a day
immediately preceding a day which is not a Business Day, such Fixed Period shall be
extended to the next succeeding Business Day; and

(iii) in the case of any Fixed Period for any Receivable Interest which
commences before the Termination Date for such Receivable Interest and would
otherwise end on a date occurring after such Termination Date, such Fixed Period
shall end on such Termination Date and the duration of each Fixed Period which
commences on or after the Termination Date for such Receivable Interest shall be of
such duration (including, without limitation, one day) as shall be selected by the
Agent or, in the absence of any such selection, each period of thirty days from the
last day of the immediately preceding Fixed Period.

“Incipient Event of Termination” means an event that but for notice or lapse of time
or both would constitute an Event of Termination.

“Investor” means CAFCO and all other owners by assignment or otherwise of a Receivable
Interest originally purchased by CAFCO and, to the extent of the undivided interests so purchased,
shall include any participants.

“Investor Rate” for any Fixed Period for any Receivable Interest means the per annum
rate equivalent to the weighted average of the per annum rates paid or payable by CAFCO from time
to time as interest on or otherwise (by means of interest rate hedges or otherwise) in respect of
those promissory notes issued by CAFCO that are allocated, in whole or in part, by the Agent (on
behalf of CAFCO) to fund the purchase or maintenance of such Receivable Interest during such Fixed
Period as determined by the Agent (on behalf of CAFCO) and reported to the Seller and, if the
Collection Agent is not the Seller, the Collection Agent, which rates shall reflect and give effect
to the commissions of placement agents and dealers in respect of such promissory notes, to the
extent such commissions are allocated, in whole or in part, to such promissory notes by the Agent
(on behalf of CAFCO); provided, however, that if any component of such rate is a
discount rate, in calculating the “Investor Rate” for such Fixed Period the Agent shall for
such component use the rate resulting from converting such discount rate to an interest bearing
equivalent rate per annum.

“Liquidation Day” means, for any Receivable Interest, (i) each day during a Fixed
Period for such Receivable Interest on which the conditions set forth in Section 3.02 are not
satisfied, and (ii) each day which occurs on or after the Termination Date for such Receivable
Interest.

“Liquidation Fee” means, for (i) any Fixed Period during which a Liquidation Day
occurs or (ii) any Fixed Period for which Yield is computed by reference to the Investor Rate and a
reduction of Capital is made for any reason (x) in an amount greater than $25,000,000 on a
Settlement Date or (y) in any amount on any day other than a Settlement Date or (iii) any Fixed
Period for which Yield is computed by reference to the Eurodollar Rate and a reduction of Capital
is made for any reason on any day other than the last day of such Fixed Period, the amount, if any,
by which (A) the additional Yield (calculated without taking into account any Liquidation Fee or
any shortened duration of such Fixed Period pursuant to clause (iii) of the definition thereof)
which would have accrued during such Fixed Period on the reductions of Capital of the Receivable
Interest relating to such Fixed Period had such reductions remained as Capital, exceeds (B) the
income, if any, received by the Investors or the Banks which hold such Receivable Interest from the
investment of the proceeds of such reductions of Capital.

“Lock-Box Account” means an account maintained at a Lock-Box Bank for the
purpose of receiving Collections.

“Lock-Box Agreement” means an agreement, in substantially the form of Annex B.

“Lock-Box Bank” means any of the banks holding one or more Lock-Box Accounts.

“Loss Horizon Factor” means, as of any date, a ratio computed by dividing (i) the
aggregate Outstanding Balance (in each case, at the time of creation) of all Originator Receivables
created by the Originators during the four most recently ended calendar months by (ii) the
Outstanding Balance of Originator Receivables (other than Defaulted Receivables) as at the last
day of the most recently ended calendar month.

“Loss Percentage” means, as of any date, (I) absent the existence of a Class 2 Special
Event, the greatest of (i) the product of (A) two multiplied by (B) the Loss Horizon Factor as of
the last day of the most recently ended calendar month multiplied by (C) the highest of the Loss
Ratios for the twelve most recently ended calendar months, (ii) four times the Normal Concentration
Limit and (iii) 13%, and (II) during the existence of a Class 2 Special Event, the greatest of
(i) the product of (A) 2.25 multiplied by (B) the Loss Horizon Factor as of the last day of the
most recently ended calendar month multiplied by (C) the highest of the Loss Ratios for the twelve
most recently ended calendar months, (ii) four times the Normal Concentration Limit and (iii) 13%.

“Loss Ratio” means, as of any date, the average of the ratios (each expressed as a
percentage) for each of the three most recently ended calendar months computed for each such month
by dividing (i) the sum of the aggregate Outstanding Balance of Originator Receivables which were
91-120 days past due (or otherwise would have been classified during such month as Defaulted
Receivables in accordance with clause (ii) or (iii) of the definition of “Defaulted Receivables”)
as at the last day of such month plus (without duplication) write-offs during such month, by
(ii) the aggregate Outstanding Balance (in each case, at the time of creation) of Originator
Receivables created during the fourth preceding month.

“Loss Reserve” means, for any Receivable Interest on any date, an amount equal to:

 LP  x (C + YFR)

1 — LP

where:

	 	 	 	LP = the Loss Percentage for such Receivable
Interest on such date.

C = the Capital of such Receivable Interest on such date.

	 	 	 	YFR = the Yield and Fee Reserve for such Receivable
Interest on such date.

“Loss-to-Liquidation Ratio” means the ratio (expressed as a percentage)
computed as of the last day of each calendar month by dividing (i) the aggregate Outstanding
Balance of all Originator Receivables written off by the Originators or the Seller, or which should
have been written off by the Originators or the Seller in accordance with the Credit and Collection
Policy, during the twelve calendar month period ending on such last day by (ii) the aggregate
amount of Collections of Originator Receivables actually received during such period.

“Monthly Report” means a report in substantially the form of Annex A-1 hereto and
containing such additional information as the Agent may reasonably request from time to time,
furnished by the Collection Agent to the Agent pursuant to Section 6.02(g).

“Moody’s” means Moody’s Investors Service, Inc.

“Net Receivables Pool Balance” means at any time the Outstanding Balance of Eligible
Receivables then in the Receivables Pool reduced by the sum of (i) the Outstanding Balance of such
Eligible Receivables that are then Defaulted Receivables,(ii) the aggregate amount by which the
Outstanding Balance of Eligible Receivables (other than Defaulted Receivables) of each Obligor then
in the Receivables Pool exceeds the product of (A) the Concentration Limit for such Obligor
multiplied by (B) the aggregate outstanding Capital of all Receivable Interests, (iii) the
aggregate amount of Collections on hand at such time for payment on account of any Eligible
Receivables, the Obligor of which has not been identified, (iv) the aggregate Outstanding Balance
of all Eligible Receivables in respect of which any credit memo issued by an Originator or the
Seller is outstanding at such time to the extent deemed Collections have not been paid pursuant to
Section 2.04(f) and (v) the aggregate amount of deposits received by the Originators and the Seller
from any Obligors with respect to Eligible Receivables.

“Non-Investment Grade Event” means any of the long term public senior unsecured
non-credit-enhanced debt securities of Ferro Corporation are rated below BBB- by S&P or Baa3 by
Moody’s, or if Ferro Corporation does not have long term public senior unsecured
non-credit-enhanced debt ratings from both S&P and Moody’s, Ferro Corporation is judged by the
Agent, in its sole discretion, to be of credit quality below (with respect to each missing rating)
BBB- by S&P or Baa3 by Moody’s.

“Obligor” means a Person obligated to make payments pursuant to a Contract.

“Original RPA” has the meaning specified in the preliminary statements to this
Agreement.

“Originator Purchase Agreement” means the Purchase and Contribution Agreement dated as
of September 28, 2000 between the Originators, as sellers, and the Seller, as purchaser, as the
same has been or may be amended, modified or restated from time to time.

“Originator Receivable” means the indebtedness of any Obligor resulting from
the provision or sale of merchandise, insurance or services by an Originator under a Contract, and
includes the right to payment of any interest or finance charges and other obligations of such
Obligor with respect thereto; provided, however, that “Originator Receivable” shall
not include any APC Receivable until such time as (i) the Seller has requested, and the Agent has
approved in writing, the inclusion of the APC Receivables in the Receivables Pool and (ii) Ferro
Corporation has directed all Obligors of APC Receivables to make payments thereon to a Lock-Box or
Lock-Box Account specified on Schedule I as to which a Lock-Box Agreement is in effect.

“Originators” means Ferro Corporation, an Ohio corporation, and Ferro Electronic
Materials Inc. a Delaware corporation.

“Other Approved Jurisdiction” means each of the countries listed on Schedule III-B
hereto, as such Schedule may be amended from time to time upon request of the Seller or the
Collection Agent, with prior written approval of the Agent; provided, however, that
at any time that the sovereign long-term debt rating of any country listed on such Schedule falls
below A- by S&P or below A3 by Moody’s, such country will cease to be an Other Approved
Jurisdiction. Additionally, the Agent may remove countries from such Schedule at any time, as it
determines in its sole discretion, upon prior written notice to the Seller and the Collection
Agent.

“Other Companies” means the Originators and all of their Subsidiaries except the
Seller.

“Outstanding Balance” of any Receivable at any time means the then outstanding
principal balance thereof.

“Percentage” of any Bank means, (a) with respect to Citibank, the percentage set forth
on the signature page to this Agreement, or such amount as reduced or increased by any Assignment
and Acceptance entered into with an Eligible Assignee, or (b) with respect to a Bank that has
entered into an Assignment and Acceptance, the amount set forth therein as such Bank’s Percentage,
or such amount as reduced or increased by an Assignment and Acceptance entered into between such
Bank and an Eligible Assignee.

“Person” means an individual, partnership, corporation (including a business trust),
limited liability company, joint stock company, trust, unincorporated association, joint venture or
other entity, or a government or any political subdivision or agency thereof.

“Pool Non-compliance Date” means any day on which the Net Receivables Pool Balance as
shown in the most recent Monthly Report or (following a Non-Investment Grade Event but prior to a
BB Downgrade Event) the most recent Weekly Report or (following a BB Downgrade Event other than the
2005 Downgrade Event and the 2006 Downgrade Events) the most recent Daily Report is less than the
Required Net Receivables Pool Balance.

“Pool Receivable” means a Receivable in the Receivables Pool.

“Purchase Limit” means $100,000,000, as such amount may be reduced pursuant to
Section 2.01(b). References to the unused portion of the Purchase Limit shall mean, at any time,
the Purchase Limit, as then reduced pursuant to Section 2.01(b), minus the then outstanding Capital
of Receivable Interests under this Agreement.

“Purchaser Collections” means, as of any Deposit Date, that portion of the Collections
deposited to the Lock-Box Accounts on such date or received by the Collection Agent on such date
equal to the product of (i) the Allocation Percentage on such date times (ii) the aggregate amount
of such Collections.

“Receivable” means any Originator Receivable which has been acquired by the Seller
from an Originator by purchase or by capital contribution pursuant to the Originator Purchase
Agreement.

“Receivable Interest” means, at any time, an undivided percentage ownership interest
in (i) all then outstanding Pool Receivables arising prior to the time of the most recent
computation or recomputation of such undivided percentage interest pursuant to Section 2.03,
(ii) all Related Security with respect to such Pool Receivables, and (iii) all Collections with
respect to, and other proceeds of, such Pool Receivables. Such undivided percentage interest shall
be computed as

C + YFR + LR + DR

NRPB

where:

	 	 	 	C = the Capital of such Receivable Interest at
the time of computation.

	 	 	 	YFR = the Yield and Fee Reserve of such Receivable
Interest at the time of computation.

	 	 	 	LR = the Loss Reserve of such Receivable Interest
at the time of computation.

	 	 	 	DR = the Dilution Reserve of such Receivable
Interest at the time of computation.

	 	 	 	NRPB = the Net Receivables Pool Balance at the time
of computation.

Each Receivable Interest shall be determined from time to time pursuant to the provisions of
Section 2.03.

“Receivables Pool” means at any time the aggregation of each then outstanding
Receivable in respect of which the Obligor is a Designated Obligor at such time or was a Designated
Obligor on the date of the initial creation of an interest in such Receivable under this Agreement.

“Related Security” means with respect to any Receivable

(i) all of the Seller’s interest in any merchandise (including returned
merchandise) relating to any sale giving rise to such Receivable;

(ii) all security interests or liens and property subject thereto from time to
time purporting to secure payment of such Receivable, whether pursuant to the
Contract related to such Receivable or otherwise, together with all financing
statements filed against an Obligor describing any collateral securing such
Receivable;

(iii) all guaranties, insurance and other agreements or arrangements of
whatever character from time to time supporting or securing payment of such
Receivable whether pursuant to the Contract related to such Receivable or otherwise;
and

(iv) the Contract and all other books, records and other information
(including, without limitation, computer programs, tapes, discs, punch cards, data
processing software and related property and rights) relating to such Receivable and
the related Obligor.

“Required Net Receivables Pool Balance” means, as of any day, the sum of (i) the
aggregate Reserves for all Receivable Interests calculated as of such day plus (ii) the aggregate
outstanding Capital for all Receivable Interests as of such day. For purposes of such calculation,
Capital shall be reduced by the aggregate amount of funds then held in the Cash Collateral Account,
and (to the extent applicable) the Reserves shall be computed on such reduced Capital.

“Reserves” means, with respect to any Receivable Interest as of any day, the sum of
the Yield and Fee Reserve, the Loss Reserve and the Dilution Reserve for such Receivable Interest
as of such day.

“Revolving Period” means the period beginning on the date of the initial purchase
hereunder and terminating at the close of business on the Business Day immediately preceding the
date on which the Termination Date shall have occurred for all Receivable Interests.

“S&P” means Standard & Poor’s Rating Services, a division of McGraw-Hill Companies,
Inc.

“SEC” means the Securities and Exchange Commission.

“Seller Collections” means, as of any Deposit Date, that portion of the Collections
deposited to the Lock-Box Accounts on such date or received by the Collection Agent on such date
equal to the product of (i) 100% minus the Allocation Percentage on such date times (ii) the
aggregate amount of such Collections.

“Seller Report” means a Monthly Report, a Weekly Report, or a Daily Report.

“Settlement Date” for any Receivable Interest means the last day of each Fixed Period
for such Receivable Interest; provided, however, that if Yield with respect to such
Receivable Interest is computed by reference to the Investor Rate and no Liquidation Day exists on
the last day of a Fixed Period for such Receivable Interest, the Settlement Date for such
Receivable Interest for such Fixed Period shall be the second Business Day after the last day of
such Fixed Period.

“Special Event” means any of the long term public senior unsecured non-credit-enhanced
debt securities of Ferro Corporation are rated below BBB by S&P (if rated by S&P) or Baa2 by
Moody’s (if rated by Moody’s), or if Ferro Corporation does not have long term public senior
unsecured non-credit-enhanced debt ratings from both S&P and Moody’s, Ferro Corporation is judged
by the Agent, in its sole discretion, to be of credit quality below (with respect to each missing
rating) BBB by S&P or Baa2 by Moody’s.

“Subsidiary” means any corporation or other entity of which securities having ordinary
voting power to elect a majority of the board of directors or other persons performing similar
functions are at the time directly or indirectly owned by the Seller or an Originator, as the case
may be, or one or more Subsidiaries, or by the Seller or an Originator, as the case may be, and one
or more Subsidiaries.

“Tangible Net Worth” means at any time the excess of (i) the sum of (A) the product of
(x) 100% minus the Discount (as such term is defined in the Originator Purchase Agreement)
multiplied by (y) the Outstanding Balance of all Receivables other than Defaulted Receivables plus
(B) cash and cash equivalents of the Seller plus (C) the outstanding principal amount of Purchaser
Loans (as such term is defined in the Originator Purchase Agreement), minus (ii) the sum of
(A) Capital plus (B) the Deferred Purchase Price.

“Term Period” means, for any Bank, the period commencing on the Cash Secured Advance
Commencement Date, if any, for such Bank and ending on the first day on which the Termination Date
for all Receivable Interests held by such Bank has occurred.

“Term-Out Bank” means any Bank for which the Term Period has commenced.

“Term-Out Bank Collateral” has the meaning specified in Section 2.14(b).

“Term-Out Bank Purchase Date” means, for any Term-Out Bank, the Commitment Termination
Date for such Bank determined pursuant to clause (a) of the definition thereof, without giving
effect to the final proviso at the end of the definition of Commitment Termination Date.

“Termination Date” for any Receivable Interest means (i) in the case of a
Receivable Interest owned by an Investor, the earlier of (a) the Business Day which the Seller or
the Agent so designates by notice to the other at least one Business Day in advance for such
Receivable Interest and (b) the Facility Termination Date and (ii) in the case of a Receivable
Interest owned by a Bank, the earlier of (a) the Business Day which the Seller so designates by
notice to the Agent at least one Business Day in advance for such Receivable Interest and (b) the
Commitment Termination Date.

“Transaction Document” means any of this Agreement, the Originator Purchase Agreement,
the Lock-Box Agreements, the Cash Collateral Agreement, the Fee Agreement, the Undertaking
Agreement, the Collateral Advance Account Agreement, all amendments to any of the foregoing and all
other agreements and documents delivered and/or related hereto or thereto.

“UCC” means the Uniform Commercial Code as from time to time in effect in the
specified jurisdiction.

“Undertaking Agreement” means the Undertaking Agreement dated as of the date of this
Agreement made by Ferro Corporation in favor of the Seller, substantially in the form attached
hereto as Annex E, as the same may be amended, modified or restated from time to time.

“Week” means each calendar week beginning on Saturday and ending on (and including)
the following Friday.

“Weekly Report” means a report in substantially the form of Annex A-2 hereto and
containing such additional information as the Agent may reasonably request from time to time,
furnished by the Collection Agent to the Agent pursuant to Section 6.02(h), following the
occurrence of a Non-Investment Grade Event (other than the 2005 Downgrade Event or the 2006
Downgrade Events).

“Yield” means:

(i) for each Receivable Interest for any Fixed Period to the extent CAFCO will
be funding such Receivable Interest through the issuance of commercial paper or
other promissory notes,

IR x C x ED  + LF

360

(ii) for each Receivable Interest for any Fixed Period to the extent (x) the
Investors will not be funding such Receivable Interest through the issuance of
commercial paper or other promissory notes, or (y) an Investor other than CAFCO will
be funding such Receivable Interest,

AR x C x ED  + LF

360

where:

	 	 	 	AR = the Assignee Rate for such Receivable
Interest for such Fixed Period

	 	 	C = the Capital of such Receivable Interest during such Fixed Period

	 	 	 	IR = the Investor Rate for such Receivable
Interest for such Fixed Period

	 	 	 	ED = the actual number of days elapsed during such
Fixed Period

	 	 	 	LF = the Liquidation Fee, if any, for such
Receivable Interest for such Fixed Period

provided that no provision of this Agreement shall require the payment or permit the
collection of Yield in excess of the maximum permitted by applicable law; and provided
further that Yield for any Receivable Interest shall not be considered paid by any
distribution to the extent that at any time all or a portion of such distribution is rescinded or
must otherwise be returned for any reason.

“Yield and Fee Reserve” means, for any Receivable Interest on any date, an amount
equal to

(C x YFRP) + AUYF

where:

	 	 	 	C = the Capital of such Receivable Interest at
the close of business of the Collection Agent on such date.

	 	 	 	YFRP = the Yield and Fee Reserve Percentage on such
date.

	 	 	 	AUYF = accrued and unpaid Yield, Collection Agent
Fee, and Fees on such date, in each case for such Receivable Interest.

“Yield and Fee Reserve Percentage” means, on any date, a percentage equal to

[(AER x 1.5) + AM + PF + CAF] x AVGM

360

where:

	 	 	 	AER = the one-month Adjusted Eurodollar Rate in
effect on such date.

	 	 	 	AM = the applicable spread or margin used in the
calculation of the Assignee Rate in effect on such date.

	 	 	 	PF = the Program Fee (as defined in the Fee Agreement), in effect on
such date.

	 	 	 	CAF = the percentage per annum used in the
calculation of the Collection Agent Fee in effect on such date.

	 	 	 	AVGM = the Average Maturity on such date plus the
Collection Delay Period.

SECTION 1.2. Other Terms. All accounting terms not specifically defined herein shall
be construed in accordance with generally accepted accounting principles. All terms used in
Article 9 of the UCC in the State of New York, and not specifically defined herein, are used herein
as defined in such Article 9.

ARTICLE 2

AMOUNTS AND TERMS OF THE PURCHASES

SECTION 2.1. Purchase Facility. (a)  On the terms and conditions hereinafter set
forth, CAFCO may, in its sole discretion, and the Banks shall, ratably in accordance with their
respective Bank Commitments, purchase Receivable Interests from the Seller from time to time during
the period from the date hereof to the Facility Termination Date (in the case of CAFCO) and to the
Commitment Termination Date (in the case of the Banks). Under no circumstances shall CAFCO make
any such purchase, or the Banks be obligated to make any such purchase, if, after giving effect to
such purchase, the aggregate outstanding Capital of Receivable Interests would exceed the Purchase
Limit.

(1) The Seller may at any time, upon at least five Business Days’ notice to the Agent,
terminate the facility provided for in this Agreement in whole or, from time to time, reduce in
part the unused portion of the Purchase Limit; provided that each partial reduction shall be in the
amount of at least $5,000,000 or an integral multiple thereof.

(2) Until the Agent gives the Seller the notice provided in Section 3.02(c)(iii), the Agent,
on behalf of the Investors which own Receivable Interests, may have the Collections attributable to
such Receivable Interests automatically reinvested pursuant to Section 2.04 in additional undivided
percentage interests in the Pool Receivables by making an appropriate readjustment of such
Receivable Interests. The Agent, on behalf of the Banks which own Receivable Interests, shall have
the Collections attributable to such Receivable Interests automatically reinvested pursuant to
Section 2.04 in additional undivided percentage interests in the Pool Receivables by making an
appropriate readjustment of such Receivable Interests.

(3) At least three Business Days prior to the Cash Secured Advance Commencement Date
for any Bank, the Seller shall notify such Bank if the Seller wishes such Bank to make the advances
described in this Section. Following such notice, on the Cash Secured Advance Commencement Date
for such Bank, such Bank shall, and agrees to, make an advance to the Seller in an amount equal to
the excess of (i) such Bank’s Bank Commitment over (ii) the outstanding Capital of all Receivable
Interests owned by such Bank (after giving effect to any purchase made by such Bank on or prior to
such Cash Secured Advance Commencement Date pursuant to this Agreement or pursuant to the Asset
Purchase Agreement to which it is a party) on the Term-Out Bank Purchase Date for such Bank, and
such Bank shall make such advance by causing an amount equal to such advance to be deposited in
same day funds into the Collateral Advance Account.

SECTION 2.2. Making Purchases. (a) Each purchase by CAFCO or the Banks shall be made
on at least three Business Days’ notice in the form of a Drawdown Notice from the Seller to the
Agent. Each such Drawdown Notice of a purchase shall specify (i) the amount requested to be paid
to the Seller (such amount, which shall not be less than $2,000,000, being referred to herein as
the initial “Capital” of the Receivable Interest then being purchased) and (ii) the date of such
purchase (which shall be a Business Day). The Agent shall promptly thereafter notify the Seller
whether CAFCO has determined to make a purchase and, if so, whether all of the terms specified by
the Seller are acceptable to CAFCO.

If CAFCO has determined not to make a proposed purchase, the Agent shall promptly send notice
of the proposed purchase to all of the Banks concurrently by telecopier, telex or cable specifying
the date of such purchase, each Bank’s Percentage multiplied by the aggregate amount of Capital of
Receivable Interest being purchased, whether the Yield for the Fixed Period for such Receivable
Interest is calculated based on the Eurodollar Rate (which may be selected only if such notice is
given at least three Business Days prior to the purchase date) or the Alternate Base Rate, and the
duration of the Fixed Period for such Receivable Interest; provided, however, that
during the Term Period for any Bank, such Bank shall, on the date of such purchase, instruct the
Agent to make available to the Seller at the account set forth in the Drawdown Notice such Bank’s
ratable share of the amount of Capital of the Receivable Interest being acquired by such Bank out
of the funds available therefor in the Collateral Advance Account.

(1) On the date of each such purchase of a Receivable Interest, CAFCO or the Banks, as
the case may be, shall, upon satisfaction of the applicable conditions set forth in Article III,
make available to the Seller in same day funds an amount equal to the initial Capital of such
Receivable Interest, at the account set forth in the Drawdown Notice for such purchase;
provided, however, if such purchase is being made by the Banks following the
designation by the Agent of a Termination Date for a Receivable Interest owned by an Investor
pursuant to clause (i)(a) of the definition of Termination Date and any Capital of such Receivable
Interest is outstanding on such date of purchase, the Seller hereby directs the Banks to pay the
proceeds of such purchase (to the extent of the outstanding Capital and accrued Yield on such
Receivable Interest of the Investor) to the Agent’s Account, for application to the reduction of
the outstanding Capital and accrued Yield on such Receivable Interest of the Investor;
provided, further, however, that during the Term Period for any Bank, after
receipt by the Agent of the instruction from such Bank referred to in the proviso to the last
sentence of Section 2.02(a) and upon fulfillment of the applicable conditions set forth in
Article III, the Agent shall make available to the Seller at the account set forth in the Drawdown
Notice such Bank’s ratable share of such purchase, solely out of the funds available therefor in
the Collateral Advance Account, and upon such deposit such Bank will be deemed to have paid to the
Seller such Bank’s ratable share of such Bank’s amount of the Capital of the Receivable Interest
being acquired for all purposes of this Agreement.

(2) Effective on the date of each purchase pursuant to this Section 2.02 and each reinvestment
pursuant to Section 2.04, the Seller hereby sells and assigns to the Agent, for the benefit of the
parties making such purchase, an undivided percentage ownership interest, to the extent of the
Receivable Interest then being purchased, in each Pool Receivable then existing and in the Related
Security and Collections with respect thereto.

(3) In addition to the transfer of ownership to Receivable Interests stipulated above, the
Seller, subject to the satisfaction of the conditions precedent set out in this Agreement, hereby
assigns by way of a German law assignment (Abtretung) within the meaning of Section 398 German
Civil Code (Bürgerliches Gesetzbuch) to the Agent for the benefit of CAFCO Receivable Interests in
all Receivables (whether now existing or hereafter arising) acquired by the Seller pursuant to the
Originator Purchase Agreement and owed by an Obligor located in Germany (the “German Obligor
Receivables”). The Agent accepts such assignment. The assignment of the Receivable Interests
shall include all ancillary rights, priority rights as well as all other rights attached to the
German Obligor Receivables

(4) Notwithstanding the foregoing, (i) CAFCO shall not make purchases under this Section 2.02
during the Term Period for any Bank in an amount which would exceed the Purchase Limit minus the
aggregate Bank Commitments of the Term-Out Banks, and (ii) a Bank shall not be obligated to make
purchases under this Section 2.02 at any time in an amount which would exceed such Bank’s Bank
Commitment less such Bank’s ratable share of the aggregate outstanding Capital held by CAFCO
(whether or not any portion thereof has been assigned under the Asset Purchase Agreement), after
giving effect to any reductions of the Capital held by CAFCO to be made on the date of such
purchase (whether from the distribution of Collections or from the proceeds of purchases by the
Banks). Each Bank’s obligation shall be several, such that the failure of any Bank to make
available to the Seller any funds in connection with any purchase shall not relieve any other Bank
of its obligation, if any, hereunder to make funds available on the date of such purchase, and no
Bank shall be responsible for the failure of any other Bank to make funds available in connection
with any purchase.

SECTION 2.3. Receivable Interest Computation. Each Receivable Interest shall be
initially computed on its date of purchase. Thereafter until the Termination Date for such
Receivable Interest, such Receivable Interest shall be automatically recomputed (or deemed to be
recomputed) on each day other than a Liquidation Day. Any Receivable Interest, as computed (or
deemed recomputed) as of the day immediately preceding the Termination Date for such Receivable
Interest, shall thereafter remain constant. Such Receivable Interest shall become zero when
Capital thereof and Yield thereon shall have been paid in full, and all Fees and other amounts owed
by the Seller hereunder to the Investors, the Banks or the Agent are paid and the Collection Agent
shall have received the accrued Collection Agent Fee thereon.

SECTION 2.4. Settlement Procedures. (a) Collection of the Pool Receivables
shall be administered by a Collection Agent, in accordance with the terms of Article VI of this
Agreement. The Seller shall provide to the Collection Agent (if other than the Seller) on a timely
basis all information needed for such administration, including notice of the occurrence of any
Liquidation Day and current computations of each Receivable Interest.

(1) So long as a BB Downgrade Event (other than the 2005 Downgrade Event and the 2006
Downgrade Events) shall not have occurred the Collection Agent shall, on each day on which
Collections of Pool Receivables are received by it:

(1) with respect to each Receivable Interest, set aside and hold in trust (and,
at the request of the Agent, segregate) for the Investors or the Banks that hold
such Receivable Interest, out of the percentage of such Collections represented by
such Receivable Interest, an amount equal to the Yield, Fees and Collection Agent
Fee (and during the Term Period, an amount equal to the Excess Interest in respect
of all Cash Secured Advances) accrued through such day for such Receivable Interest
and not previously set aside;

(2) with respect to each Receivable Interest, if such day is not a Liquidation
Day for such Receivable Interest, reinvest with the Seller on behalf of the
Investors or the Banks that hold such Receivable Interest the percentage of such
Collections represented by such Receivable Interest, to the extent representing a
return of Capital, by recomputation of such Receivable Interest pursuant to Section
2.03;

(3) if such day is a Liquidation Day for any one or more Receivable Interests,
set aside and hold in trust (and, at the request of the Agent, segregate) for the
Investors or the Banks that hold such Receivable Interests (x) if such day is a
Liquidation Day for less than all of the Receivable Interests, the percentage of
such Collections represented by such Receivable Interests, and (y) if such day is a
Liquidation Day for all of the Receivable Interests, all of the remaining
Collections (but not in excess of the Capital of such Receivable Interests);
provided that if amounts are set aside and held in trust on any Liquidation
Day occurring prior to the Termination Date, and thereafter prior to the Settlement
Date for such Fixed Period the conditions set forth in Section 3.02 are satisfied or
waived by the Agent, such previously set aside amounts shall, to the extent
representing a return of Capital, be reinvested in accordance with the preceding
subsection (ii) on the day of such subsequent satisfaction or waiver of conditions;
and

(4) during such times as amounts are required to be reinvested in accordance
with the foregoing subsection (ii) or the proviso to subsection (iii), release to
the Seller for its own account any Collections in excess both of such amounts and of
the amounts that are required to be set aside pursuant to subsection (i) above.

(2) If a BB Downgrade Event (other than the 2005 Downgrade Event and the 2006 Downgrade
Events) shall have occurred and be continuing, the Collection Agent shall comply with the
following:

(1) If the Collection Agent shall fail to deliver the Daily Report on
any Deposit Date during the Revolving Period, the Collection Agent shall not be
permitted to withdraw any amounts from the Lock-Box Accounts on such date or any
date thereafter unless and until the Collection Agent shall be in compliance with
Section 6.02(h) (but subject to the right of the Agent to prohibit withdrawals by
the Collection Agent from the Lock-Box Accounts in accordance with the Lock-Box
Agreements);

(2) On the first Business Day following each Deposit Date during the Revolving
Period, following delivery of the Daily Report to the Agent, if the Daily Report for
such date shows that no Cure Period shall have occurred and be continuing, the
Collection Agent shall, in the following order:

	 	(1)	 	based on the Allocation Percentage on such day,
determine the amount of Purchaser Collections and Seller Collections;

	 	(2)	 	withdraw from the Lock-Box Accounts and from
Collections of Pool Receivables which the Collection Agent received on
such Deposit Date and set aside on its books and hold in trust (and, at
the request of the Agent, segregate) for the Investors and the Banks
that hold Receivable Interests, out of Purchaser Collections, an amount
equal to the Yield, Fees, and Collection Agent Fee (and during the Term
Period, an amount equal to the Excess Interest in respect of all Cash
Secured Advances) accrued through such day for the Receivable Interests
and not previously set aside;

	 	(3)	 	withdraw from the Lock-Box Accounts and from
Collections of Pool Receivables which the Collection Agent received on
such Deposit Date and release to the Seller the remainder of Purchaser
Collections, in each instance to the extent representing a return of
Capital, to be reinvested with the Seller in Receivable Interests;
provided that, if immediately following any such reinvestment
such Deposit Date would be a Pool Non-compliance Date, the Collection
Agent shall retain all such remaining Collections in (or, to the extent
the Collection Agent has received any such Collections, redeposit such
Collections into) the Lock-Box Accounts (and deposit the other such
remaining Collections received by it into the Lock-Box Accounts) to be
applied pursuant to Section 2.04(c)(iii)(C); and

	 	(4)	 	remit the Seller Collections to the Seller.

(3) On the first Business Day following each Deposit Date during the Revolving
Period, following delivery of the Daily Report to the Agent, if the Daily Report for
such date shows that a Cure Period shall have occurred and be continuing, the
Collection Agent shall, in the following order:

(1)

	 	(1)	 	based on the Allocation Percentage on such day,
determine the amount of Purchaser Collections and Seller Collections;

	 	(2)	 	withdraw from the Lock-Box Accounts and from
Collections of Pool Receivables which the Collection Agent received on
such Deposit Date and set aside on its books and hold in trust (and, at
the request of the Agent, segregate) for the Investors and the Banks
that hold the Receivable Interests, out of Purchaser Collections, an
amount equal to the Yield, Fees, and Collection Agent Fee (and during
the Term Period, an amount equal to the Excess Interest in respect of
all Cash Secured Advances) accrued through such day for the Receivable
Interests and not previously set aside;

	 	(3)	 	remit to the Cash Collateral Account from the
Lock-Box Accounts and from Collections of Pool Receivables which the
Collection Agent received on such Deposit Date an amount equal to the
lesser of (x) the sum of the remaining Collections in the Lock-Box
Accounts (and Collections received by the Collection Agent from the
Lock-Box Accounts on such Deposit Date) and the remaining Collections
of Pool Receivables received by it on such Deposit Date and (y) an
amount equal to the excess of the Required Net Receivables Pool Balance
over the Net Receivables Pool Balance;

	 	(4)	 	withdraw from the Lock-Box Accounts and from
Collections of Pool Receivables which the Collection Agent received on
such Deposit Date and release to the Seller the remainder of Purchaser
Collections, in each instance to the extent representing a return of
Capital, to be reinvested with the Seller in Receivable Interests (for
purposes of determining the remainder of Purchaser Collections, any
Collections which have previously been applied pursuant to
Section 2.04(c)(iii)(C) shall be deemed to be first Seller Collections
and then Purchaser Collections); and

	 	(5)	 	remit the Seller Collections to the Seller.

(4) On the first Business Day following each Deposit Date during the
Amortization Period, the Collection Agent shall, by no later than 11:00 A.M. (New
York City time), remit to the Agent’s Account all Collections in the Lock-Box
Accounts and all Collections of Pool Receivables which the Collection Agent received
on such Deposit Date.

(3) The Collection Agent shall deposit into the Agent’s Account, on the Settlement Date
for each Receivable Interest, (x) prior to the occurrence of a Liquidation Day, Collections held
for the Investors or the Banks that relate to such Receivable Interest pursuant to
Sections 2.04(b), 2.04(c)(ii)(B) or 2.04(c)(iii)(B) and (y) following the occurrence of a
Liquidation Day, all Collections. The Collection Agent shall pay to itself on each Settlement Date
which is not a Liquidation Day Collections set aside with respect to each Receivable Interest on
account of accrued Collection Agent Fee. On any Business Day on which funds are on deposit in the
Cash Collateral Account, the Collection Agent (i) shall, upon written notice from the Agent, and
may (if the funds in the Cash Collateral Account exceed $10,000,000), upon written notice to the
Agent, remit such funds from the Cash Collateral Account to the Agent’s Account or (ii) may,
following delivery of the Daily Report to the Agent, withdraw from the Cash Collateral Account and
remit to the Seller all or a portion of the funds in the Cash Collateral Account; provided
that such Daily Report shall state that, after taking account of the proposed withdrawal, the Net
Receivables Pool Balance on such day will be equal to or greater than the Required Net Receivables
Pool Balance, and such Daily Report shall set forth the calculation supporting such statement.

(4) Upon receipt of funds deposited into the Agent’s Account, the Agent shall distribute them
as follows:

(1) if such distribution occurs on a day that is not a Liquidation Day, first
to the Investors, the Banks and, during any Term-Out Period, the Term-Out Banks that
hold the relevant Receivable Interest and to the Agent in ratable payment in full of
all accrued Yield and Fees and remaining unpaid accrued interest in respect of all
Cash Secured Advances (pursuant to the last sentence of Section 2.12);
provided, that if such distribution related to Collections remitted from the
Cash Collateral Account, such distribution shall be paid to the Investors and the
Banks that hold the Receivable Interest in respect thereof, in reduction of Capital.

(2) if such distribution occurs on a Liquidation Day, first to the Investors or
the Banks and/or Term-Out Banks that hold the relevant Receivable Interest and to
the Agent in payment in full of all accrued Yield and Fees and interest in respect
of all Cash Secured Advances, second to such Investors or Banks in reduction to zero
of all Capital, third to the Term-Out Banks in reduction to zero of the principal
amount of all Cash Secured Advances remaining after application of the Term-Out Bank
Collateral in accordance with Section 2.14(d), and fourth to the Investors, Banks,
Term-Out Banks or the Agent in payment of any other amounts owed by the Seller
hereunder, and fourth to the Collection Agent in payment in full of all accrued
Collection Agent Fee.

After the Capital, Yield, Fees and Collection Agent Fee with respect to a Receivable Interest,
and any other amounts payable by the Seller to the Investors, the Banks or the Agent hereunder,
have been paid in full, all additional Collections with respect to such Receivable Interest shall
be paid to the Seller for its own account.

(5) For the purposes of this Section 2.04:

(1) if on any day the Outstanding Balance of any Pool Receivable is
reduced or adjusted as a result of any defective, rejected or returned merchandise
or services, or any cash discount, discount for quick payment or other adjustment
made by the Seller or an Originator, or any setoff, the Seller shall be deemed to
have received on such day a Collection of such Pool Receivable in the amount of such
reduction or adjustment;

(2) if on any day any of the representations or warranties contained in
Section 4.01(h) is no longer true with respect to any Pool Receivable, the Seller
shall be deemed to have received on such day a Collection of such Pool Receivable in
full;

(3) except as provided in subsection (i) or (ii) of this Section 2.04(f), or as
otherwise required by applicable law or the relevant Contract, all Collections
received from an Obligor of any Receivables shall be applied to the Receivables of
such Obligor in the order of the age of such Receivables, starting with the oldest
such Receivable, unless such Obligor designates its payment for application to
specific Receivables; and

(4) if and to the extent the Agent, the Investors or the Banks shall be
required for any reason to pay over to an Obligor any amount received on its behalf
hereunder, such amount shall be deemed not to have been so received but rather to
have been retained by the Seller and, accordingly, the Agent, the Investors or the
Banks, as the case may be, shall have a claim against the Seller for such amount,
payable when and to the extent that any distribution from or on behalf of such
Obligor is made in respect thereof.

SECTION 2.5. Fees. (a)  Each Investor and Bank shall pay to the Collection Agent a
fee (the “Collection Agent Fee”) of l/4 of 1% per annum on the average daily Capital of
each Receivable Interest owned by such Investor or Bank, from the date of purchase of such
Receivable Interest until the later of the Termination Date for such Receivable Interest or the
date on which such Capital is reduced to zero, payable on the Settlement Date for such Receivable
Interest. Upon three Business Days’ notice to the Agent, the Collection Agent (if not Ferro
Corporation, the Seller or its designee or an Affiliate of the Seller) may elect to be paid, as
such fee, another percentage per annum on the average daily Capital of such Receivable Interest,
but in no event in excess for all Receivable Interests relating to a single Receivables Pool of
110% of the reasonable costs and expenses of the Collection Agent in administering and collecting
the Receivables in such Receivables Pool. The Collection Agent Fee shall be payable only from
Collections pursuant to, and subject to the priority of payment set forth in, Section 2.04. So
long as Ferro Corporation is acting as the Collection Agent hereunder, amounts paid as the
Collection Agent Fee pursuant to this Section 2.05(a) shall reduce, on a dollar-for-dollar basis,
the obligation of the Seller to pay the “Collection Agent Fee” pursuant to Section 6.03 of the
Originator Purchase Agreement, provided that such obligation of the Seller shall in no
event be reduced below zero.

(1) The Seller shall pay to the Agent certain fees (collectively, the “Fees”) in the
amounts and on the dates set forth in that certain amended and restated fee agreement dated as of
June 6, 2006 between the Seller and the Agent, as the same may be amended or restated from time to
time (the “Fee Agreement”).

SECTION 2.6. Payments and Computations, Etc. (a)  All amounts to be paid or
deposited by the Seller or the Collection Agent hereunder shall be paid or deposited no later than
11:00 A.M. (New York City time) on the day when due in same day funds to the Agent’s Account;
provided, that all amounts to be deposited into the Cash Collateral Account shall be
deposited no later than 11:00 A.M. (New York City time) on the date when due, and in any event such
amounts shall be deposited into the Cash Collateral Account prior to any withdrawal from a Lock-Box
Account (other than to directly fund a deposit into the Cash Collateral Account).

(1) Each of the Seller and the Collection Agent shall, to the extent permitted by law, pay
interest on any amount not paid or deposited by it when due hereunder, at an interest rate per
annum equal to 2.0% per annum above the Alternate Base Rate, payable on demand.

(2) All computations of interest under subsection (b) above and all computations of Yield,
fees, and other amounts hereunder (including, without limitation, interest on Cash Secured Advances
during the Term Period) shall be made on the basis of a year of 360 days for the actual number of
days (including the first but excluding the last day) elapsed. Whenever any payment or deposit to
be made hereunder shall be due on a day other than a Business Day, such payment or deposit shall be
made on the next succeeding Business Day and such extension of time shall be included in the
computation of such payment or deposit.

SECTION 2.7. Dividing or Combining Receivable Interests. Either the Seller or the
Agent may, upon notice to the other party received at least three Business Days prior to the last
day of any Fixed Period in the case of the Seller giving notice, or up to the last day of such
Fixed Period in the case of the Agent giving notice, either (i) divide any Receivable Interest into
two or more Receivable Interests having aggregate Capital equal to the Capital of such divided
Receivable Interest, or (ii) combine any two or more Receivable Interests originating on such last
day or having Fixed Periods ending on such last day into a single Receivable Interest having
Capital equal to the aggregate of the Capital of such Receivable Interests; provided,
however, that no Receivable Interest owned by CAFCO may be combined with a Receivable
Interest owned by any Bank.

SECTION 2.8. Increased Costs. (a) If CNAI, any Investor, any Bank, any entity
which purchases or enters into a commitment to purchase Receivable Interests or interests therein,
or any of their respective Affiliates (each an “Affected Person”) determines that
compliance with any law or regulation or any guideline or request from any central bank or other
governmental authority (whether or not having the force of law) affects or would affect the amount
of the capital required or expected to be maintained by such Affected Person and such Affected
Person determines that the amount of such capital is increased by or based upon the existence of
any commitment to make purchases of or otherwise to maintain the investment in Pool Receivables or
interests therein related to this Agreement or to the funding thereof and other commitments of the
same type, then, upon demand by such Affected Person (with a copy to the Agent), the Seller shall
immediately pay to the Agent for the account of such Affected Person (as a third-party
beneficiary), from time to time as specified by such Affected Person, additional amounts sufficient
to compensate such Affected Person in the light of such circumstances, to the extent that such
Affected Person reasonably determines such increase in capital to be allocable to the existence of
any of such commitments. A certificate as to such amounts submitted to the Seller and the Agent by
such Affected Person shall be conclusive and binding for all purposes, absent manifest error.

(1) If, due to either (i) the introduction of or any change (other than any change by way of
imposition or increase of reserve requirements referred to in Section 2.09) in or in the
interpretation of any law or regulation or (ii) compliance with any guideline or request from any
central bank or other governmental authority (whether or not having the force of law), there shall
be any increase in the cost to any Investor or Bank of agreeing to purchase or purchasing, or
maintaining the ownership of Receivable Interests in respect of which Yield is computed by
reference to the Eurodollar Rate, then, upon demand by such Investor or Bank (with a copy to the
Agent), the Seller shall immediately pay to the Agent, for the account of such Investor or Bank (as
a third-party beneficiary), from time to time as specified by such Investor or Bank, additional
amounts sufficient to compensate such Investor or Bank for such increased costs. A certificate as
to such amounts submitted to the Seller and the Agent by such Investor or Bank shall be conclusive
and binding for all purposes, absent manifest error.

SECTION 2.9. Additional Yield on Receivable Interests Bearing a Eurodollar Rate. The
Seller shall pay to any Investor or Bank, so long as such Investor or Bank shall be required under
regulations of the Board of Governors of the Federal Reserve System to maintain reserves with
respect to liabilities or assets consisting of or including Eurocurrency Liabilities, additional
Yield on the unpaid Capital of each Receivable Interest of such Investor or Bank during each Fixed
Period in respect of which Yield is computed by reference to the Eurodollar Rate, for such Fixed
Period, at a rate per annum equal at all times during such Fixed Period to the remainder obtained
by subtracting (i) the Eurodollar Rate for such Fixed Period from (ii) the rate obtained by
dividing such Eurodollar Rate referred to in clause (i) above by that percentage equal to 100%
minus the Eurodollar Rate Reserve Percentage of such Investor or Bank for such Fixed Period,
payable on each date on which Yield is payable on such Receivable Interest. Such additional Yield
shall be determined by such Investor or Bank and notice thereof given to the Seller through the
Agent within 30 days after any Yield payment is made with respect to which such additional Yield is
requested. A certificate as to such additional Yield submitted to the Seller and the Agent by such
Investor or Bank shall be conclusive and binding for all purposes, absent manifest error.

SECTION 2.10. Security Interest. As collateral security for the performance by
the Seller of all the terms, covenants and agreements on the part of the Seller (whether as Seller
or otherwise) to be performed under this Agreement or any document delivered in connection with
this Agreement in accordance with the terms thereof, including the punctual payment when due of all
obligations of the Seller hereunder or thereunder, whether for indemnification payments, principal
and interest on the Cash Secured Advances, Yield, Capital, fees, expenses or otherwise, the Seller
hereby assigns to the Agent for its benefit and the ratable benefit of the Investors and the Banks,
and hereby grants to the Agent for its benefit and the ratable benefit of the Investors and the
Banks, a security interest in, all of the Seller’s right, title and interest in and to (A) the
Originator Purchase Agreement and the Undertaking Agreement, including, without limitation, (i) all
rights of the Seller to receive moneys due or to become due under or pursuant to the Originator
Purchase Agreement or the Undertaking Agreement, (ii) all security interests and property subject
thereto from time to time purporting to secure payment of monies due or to become due under or
pursuant to the Originator Purchase Agreement or the Undertaking Agreement, (iii) all rights of the
Seller to receive proceeds of any insurance, indemnity, warranty or guaranty with respect to the
Originator Purchase Agreement or the Undertaking Agreement, (iv) claims of the Seller for damages
arising out of or for breach of or default under the Originator Purchase Agreement or the
Undertaking Agreement, and (v) the right of the Seller to compel performance and otherwise exercise
all remedies thereunder,(B) all Receivables, whether now owned and existing or hereafter acquired
or arising, the Related Security with respect thereto and the Collections and all other assets,
including, without limitation, accounts, chattel paper, instruments and general intangibles (as
those terms are defined in the UCC), including undivided interests in any of the foregoing, owned
by the Seller and not otherwise purchased under this Agreement, (C) the Lock-Box Accounts and the
Cash Collateral Account, and (D) to the extent not included in the foregoing, all proceeds of any
and all of the foregoing.

SECTION 2.11. Purchase by Term-Out Banks. At least three Business Days prior to the
Cash Secured Advance Commencement Date for any Bank, the Seller shall notify the Agent if the
Seller wishes the purchase described in this Section 2.11 to occur. Following such notice, on the
Cash Secured Advance Commencement Date for such Bank, such Bank shall, and agrees to, purchase from
the Investor such Bank’s ratable share of all Receivable Interests then owned by the Investor for a
purchase price equal to the sum of such Bank’s ratable share of the Capital of such Receivable
Interests plus accrued and unpaid Yield and Fees thereon. Such purchase price shall be payable in
immediately available funds on the Cash Secured Advance Commencement Date for such Bank. The
Investor shall notify the Agent and the Seller of any such purchase. No further documentation of
such purchase shall be required for the effectiveness thereof, provided that if requested
by any purchasing Bank, the Investor (or its administrative agent) will execute and deliver an
assignment to such Bank in such form as may be mutually agreed between the Investor and such Bank.

SECTION 2.12. Interest on Cash Secured Advances. The Seller shall pay interest to
each Term-Out Bank on the unpaid principal amount of such Bank’s Cash Secured Advance from the date
of such Cash Secured Advance until such principal amount shall be repaid in full, at a rate per
annum equal at all times during each Fixed Period to the Assignee Rate for such Fixed Period,
payable in arrears on each Settlement Date. On each Settlement Date after the Cash Secured Advance
Commencement Date for any Bank, the Agent shall pay to such Bank, on behalf of the Seller, pursuant
to a Collateral Advance Account Direction from the relevant Bank, such Bank’s ratable portion
(based on the outstanding principal amounts of each Bank’s Cash Secured Advances) of the cash funds
that constitute that interest on, and those dividends from, the Term-Out Bank Collateral which
shall then be available to be withdrawn from the Collateral Advance Account, for application to the
payment of unpaid accrued interest on the Cash Secured Advances. Any remaining unpaid accrued
interest on the Cash Secured Advances shall be paid from the Collections of the Pool Receivables
pursuant to Section 2.04 and Section 2.14(d).

SECTION 2.13. Repayment of Cash Secured Advances. The Seller shall repay to
each Term-Out Bank the aggregate outstanding principal amount of such Bank’s Cash Secured Advance
on the Commitment Termination Date; provided, however, that recourse for such
repayment shall be from, and shall be limited to, the Term-Out Bank Collateral and the Collections
of the Pool Receivables in accordance with Section 2.04.

SECTION 2.14. Use of Proceeds; Security Interest in Collateral Advance Account.
(a)  The Seller hereby agrees that it shall use the proceeds of the Cash Secured Advances solely to
fund and maintain the Collateral Advance Account for the purpose of funding purchases of Receivable
Interests from time to time during the Term Period.

(1) The Seller hereby grants to the Agent, for the ratable benefit of the Term-Out Banks, a
security interest in the following, whether now owned and existing or hereafter acquired or arising
(collectively, the “Term-Out Bank Collateral”):

(1) the Collateral Advance Account, all funds from time to time credited to the
Collateral Advance Account, all financial assets from time to time acquired with any
such funds or otherwise credited to the Collateral Advance Account, all interest,
dividends, cash, instruments and other investment property from time to time
received, receivable or otherwise distributed in respect of or in exchange for any
or all of such funds or such financial assets; and

(2) all proceeds of, collateral for, and supporting obligations relating to any
and all of the Term-Out Bank Collateral.

(2) The grant of a security interest by the Seller to the Agent for the ratable benefit of the
Term-Out Banks pursuant to subsection (b) above secures the payment of the Seller’s obligation to
repay the Cash Secured Advances, and to pay interest thereon, pursuant to Section 2.12 and
Section 2.13, respectively.

(3) On the Commitment Termination Date for any Bank as to which the Term Period has occurred,
the Agent shall (i) convert the Term-Out Bank Collateral that does not constitute cash into cash
proceeds and (ii) pay to each Term-Out Bank, on behalf of the Seller, such Bank’s ratable portion
of the Term-Out Bank Collateral (it being understood that all the Term-Out Bank Collateral shall
then constitute cash or cash proceeds), according to the respective outstanding principal amounts
of their respective Cash Secured Advances, for application, first, to the repayment of the
outstanding principal amounts of the Cash Secured Advances and, second, to the payment of unpaid
accrued interest on the Cash Secured Advances (to the extent such funds are available therefor).
Any remaining outstanding principal amount of, and/or unpaid accrued interest on, the Cash Secured
Advances shall be paid from the Collections of the Pool Receivables pursuant to Section 2.04.

SECTION 2.15. Sharing of Payments. If any Investor or any Bank (for purposes
of this Section only, referred to as a “Recipient”) shall obtain payment (whether
voluntary, involuntary, through the exercise of any right of setoff, or otherwise) on account of
the Capital of, or Yield on, any Receivable Interest or portion thereof owned by it in excess of
its ratable share of payments made on account of the Capital of, or Yield on, all of the Receivable
Interests owned by the Investors and the Banks (other than as a result of a payment of Liquidation
Fee or different methods for calculating Yield), such Recipient shall forthwith purchase from the
Investors or the Banks which received less than their ratable share participations in the
Receivable Interests owned by such Persons as shall be necessary to cause such Recipient to share
the excess payment ratably with each such other Person; provided, however, that if
all or any portion of such excess payment is thereafter recovered from such Recipient, such
purchase from each such other Person shall be rescinded and each such other Person shall repay to
the Recipient the purchase price paid by such Recipient for such participation to the extent of
such recovery, together with an amount equal to such other Person’s ratable share (according to the
proportion of (a) the amount of such other Person’s required payment to (b) the total amount so
recovered from the Recipient) of any interest or other amount paid or payable by the Recipient in
respect of the total amount so recovered.

SECTION 2.16. Right of Setoff. Without in any way limiting the provisions of
Section 2.15, the Agent and each Investor and each Bank is hereby authorized (in addition to any
other rights it may have) at any time after the occurrence and during the continuance of an Event
of Termination or an Incipient Event of Termination to set-off, appropriate and apply (without
presentment, demand, protest or other notice which are hereby expressly waived) any deposits and
any other indebtedness held or owing by the Agent or such Investor or such Bank to, or for the
account of, (i) the Seller against any amount owing by the Seller, (ii) the Collection Agent
against any amount owing by the Collection Agent, and (iii) either Originator against any amount
owing by such Originator, to such person or to the Agent on behalf of such Person (even if
contingent or unmatured).

ARTICLE 3

CONDITIONS OF PURCHASES

SECTION 3.1. [Reserved].

SECTION 3.2. Conditions Precedent to All Purchases and Reinvestments. Each
purchase (including the initial purchase) and each reinvestment shall be subject to the further
conditions precedent that (a) in the case of each purchase, the Collection Agent shall have
delivered to the Agent at least one Business Day prior to such purchase (in the case of a Monthly
Report or a Weekly Report) and on the same day of (but prior to) such purchase (in the case of a
Daily Report), in form and substance satisfactory to the Agent, a completed Monthly Report or, if
required by Section 6.02(h), a completed Weekly Report or a completed Daily Report, containing
information covering the most recently ended reporting period for which information is required
pursuant to Sections 6.02(g) or 6.02(h), as the case may be, and demonstrating that after giving
effect to such purchase no Pool Non-Compliance Date, Event of Termination or Incipient Event of
Termination under Section 7.01(i) would occur, (b) in the case of each reinvestment, the Collection
Agent shall have delivered to the Agent on or prior to the date of such reinvestment, in form and
substance satisfactory to the Agent, a completed Monthly Report or, if required by Section 6.02(h),
a completed Weekly Report or a completed Daily Report, in each case containing information covering
the most recently ended reporting period for which information is required pursuant to
Section 6.02(g) or Section 6.02(h), as the case may be, (c) on the date of such purchase or
reinvestment the following statements shall be true, except that the statement in clause (iii)
below is required to be true only if such purchase or reinvestment is by an Investor (and
acceptance of the proceeds of such purchase or reinvestment shall be deemed a representation and
warranty by the Seller that such statements are then true):

(1) The representations and warranties contained in Section 4.01 are correct on
and as of the date of such purchase or reinvestment as though made on and as of such
date,

(2) No event has occurred and is continuing, or would result from such purchase
or reinvestment, that constitutes an Event of Termination or an Incipient Event of
Termination,

(3) The Agent shall not have given the Seller at least one Business Day’s
notice that the Investors have terminated the reinvestment of Collections in
Receivable Interests, and

(4) The Originators shall have sold or contributed to the Seller, pursuant to
the Originator Purchase Agreement, all Originator Receivables arising on or prior to
such date, and

(d) the Agent shall have received such other approvals, opinions or documents as it may reasonably
request.

SECTION 3.3. Conditions Precedent to the Effectiveness of Restatement and Amendment.
The effectiveness of this amendment and restatement of the Original RPA is subject to the
conditions precedent that the Agent shall have received on or before the date hereof the following,
each (unless otherwise indicated) dated such date, in form and substance satisfactory to the Agent:

(1) Certified copies of the resolutions of the Board of Directors of the Seller approving, and
evidence that each Originator has taken any necessary corporate action to authorize, this Agreement
and the Originator Purchase Agreement and certified copies of all documents evidencing other
necessary corporate action and governmental approvals, if any, with respect to this Agreement and
the Originator Purchase Agreement.

(2) A certificate of the Secretary or Assistant Secretary of the Seller and each Originator
certifying the names and true signatures of the officers of the Seller and the Originators
authorized to sign the Originator Purchase Agreement and this Agreement and the other documents to
be delivered by it hereunder and thereunder.

(3) Favorable opinions from counsel for the Seller and the Originators, as to such matters as
the Agent may reasonably request.

(4) A confirmation of the Undertaking Agreement, duly executed by Ferro Corporation.

(5) An executed copy of an amendment to the Originator Purchase Agreement.

(6) Evidence that the Seller has paid all fees, costs, expenses and other amounts owed by the
Seller to the Investors, the Banks and the Agent as of the date hereof.

ARTICLE 4

REPRESENTATIONS AND WARRANTIES

SECTION 4.1. Representations and Warranties of the Seller. The Seller hereby
represents and warrants as follows:

(1) The Seller is a corporation duly incorporated, validly existing and in good standing under
the laws of the jurisdiction set forth in Schedule IV hereto (as such Schedule IV may be amended
from time to time pursuant to Section 5.01(b)), and is duly qualified to do business, and
is in good standing, in every jurisdiction where the nature of its business requires it to be so
qualified.

(2) The execution, delivery and performance by the Seller of the Transaction Documents and the
other documents to be delivered by it hereunder, including the Seller’s use of the proceeds of
purchases and reinvestments, (i) are within the Seller’s corporate powers, (ii) have been duly
authorized by all necessary corporate action, (iii) do not contravene (1) the Seller’s charter or
by-laws, (2) any law, rule or regulation applicable to the Seller, (3) any contractual restriction
binding on or affecting the Seller or its property or (4) any order, writ, judgment, award,
injunction or decree binding on or affecting the Seller or its property, and (iv) do not result in
or require the creation of any lien, security interest or other charge or encumbrance upon or with
respect to any of its properties (except for the interest created pursuant to this Agreement).
Each of the Transaction Documents has been duly executed and delivered by the Seller.

(3) No authorization or approval or other action by, and no notice to or filing with, any
governmental authority or regulatory body is required for the due execution, delivery and
performance by the Seller of the Transaction Documents or any other document to be delivered
thereunder, except for the filing of UCC financing statements which are referred to therein.

(4) Each of the Transaction Documents constitutes the legal, valid and binding obligation of
the Seller enforceable against the Seller in accordance with its terms.

(5) Since September 28, 2000 there has been no material adverse change in the business,
operations, property or financial or other condition of the Seller.

(6) There is no pending or, to Seller’s knowledge, threatened action, investigation or
proceeding affecting an Originator or any of its Subsidiaries before any court, governmental agency
or arbitrator which may materially adversely affect the financial condition or operations of such
Originator or any of its Subsidiaries or the ability of the Seller or such Originator to perform
their respective obligations under the Transaction Documents, or which purports to affect the
legality, validity or enforceability of the Transaction Documents.

(7) No proceeds of any purchase or reinvestment will be used to acquire any equity security of
a class which is registered pursuant to Section 12 of the Securities Exchange Act of 1934.

(8) Immediately prior to the purchase by the Investor or the Banks, as the case may be, the
Seller is the legal and beneficial owner of the Pool Receivables and Related Security free and
clear of any Adverse Claim; upon each purchase or reinvestment, the Investors or the Banks, as the
case may be, shall acquire a valid and perfected first priority undivided percentage ownership
interest to the extent of the pertinent Receivable Interest in each Pool Receivable then existing
or thereafter arising and in the Related Security and Collections with respect thereto. No
effective financing statement or other instrument similar in effect covering any Contract or any
Pool Receivable or the Related Security or Collections with respect thereto is on file in any
recording office, except those filed in favor of the Agent relating to this Agreement and those
filed by the Seller pursuant to the Originator Purchase Agreement. Each Receivable characterized
in any Seller Report or other written statement made by or on behalf of the Seller as an Eligible
Receivable or as included in the Net Receivables Pool Balance is, as of the date of such Seller
Report or other statement, an Eligible Receivable or properly included in the Net Receivables Pool
Balance.

(9) Each Seller Report (if prepared by the Seller or one of its Affiliates, or to the extent
that information contained therein is supplied by the Seller or an Affiliate), information,
exhibit, financial statement, document, book, record or report furnished or to be furnished at any
time by or on behalf of the Seller to the Agent, the Investors or the Banks in connection with this
Agreement is or will be accurate in all material respects as of its date or (except as otherwise
disclosed to the Agent, the Investors or the Banks, as the case may be, at such time) as of the
date so furnished, and no such document contains or will contain any untrue statement of a material
fact or omits or will omit to state a material fact necessary in order to make the statements
contained therein, in the light of the circumstances under which they were made, not misleading.

(10) The principal place of business and chief executive office of the Seller and the office
where the Seller keeps its records concerning the Pool Receivables are located at the address or
addresses referred to in Section 5.01(b). The Seller is located in the jurisdiction of
organization set forth in Schedule IV hereto for purposes of Section 9-307 of the UCC as in effect
in the State of New York; and the office in the jurisdiction of organization of the Seller in which
a UCC financing statement is required to be filed in order to perfect the security interest granted
by the Seller hereunder is set forth in Schedule IV hereto (in each case as such Schedule IV may be
amended from time to time pursuant to Section 5.01(b)).

(11) The names and addresses of all the Lock-Box Banks, together with the account
numbers of the Lock-Box Accounts of the Seller at such Lock-Box Banks, are as specified in
Schedule I hereto, as such Schedule I may be updated from time to time pursuant to Section 5.01(g).

(12) Each purchase of a Receivable Interest and each reinvestment of Collections in Pool
Receivables will constitute (i) a “current transaction” within the meaning of Section 3(a)(3) of
the Securities Act of 1933, as amended, and (ii) a purchase or other acquisition of notes, drafts,
acceptances, open accounts receivable or other obligations representing part or all of the sales
price of merchandise, insurance or services within the meaning of Section 3(c)(5) of the Investment
Company Act of 1940, as amended.

(13) The Seller is not known by and does not use any tradename or doing-business-as name.

(14) The Seller was incorporated on September 26, 2000, and the Seller did not engage in any
business activities prior to the date of the Original RPA. The Seller has no Subsidiaries.

(15) (i) The fair value of the property of the Seller is greater than the total amount of
liabilities, including contingent liabilities, of the Seller, (ii) the present fair salable value
of the assets of the Seller is not less than the amount that will be required to pay all probable
liabilities of the Seller on its debts as they become absolute and matured, (iii) the Seller does
not intend to, and does not believe that it will, incur debts or liabilities beyond the Seller’s
abilities to pay such debts and liabilities as they mature and (iv) the Seller is not engaged in a
business or a transaction, and is not about to engage in a business or a transaction, for which the
Seller’s property would constitute unreasonably small capital.

(16) With respect to each Pool Receivable, the Seller (i) shall have received such Pool
Receivable as a contribution to the capital of the Seller by an Originator or (ii) shall have
purchased such Pool Receivable from an Originator in exchange for payment (made by the Seller to an
Originator in accordance with the provisions of the Originator Purchase Agreement) of cash,
Deferred Purchase Price, or a combination thereof in an amount which constitutes fair consideration
and reasonably equivalent value. Each such sale referred to in clause (ii) of the preceding
sentence shall not have been made for or on account of an antecedent debt owed by an Originator to
the Seller and no such sale is or may be voidable or subject to avoidance under any section of the
Federal Bankruptcy Code.

(17) The Seller does not have, and since September 28, 2000 has not had, a place of business
in either the United Kingdom or Ireland.

SECTION 4.2. Representations and Warranties of the Collection Agent. The Collection
Agent hereby represents and warrants as follows:

(1) The Collection Agent is a corporation duly incorporated, validly existing and in
good standing under the laws of Ohio, and is duly qualified to do business, and is in good
standing, in every jurisdiction where the nature of its business requires it to be so qualified,
unless the failure to so qualify would not have a material adverse effect on (i) the interests of
the Investors hereunder, (ii) the collectibility of the Receivables Pool, or (iii) the ability of
the Collection Agent to perform its obligations hereunder.

(2) The execution, delivery and performance by the Collection Agent of this Agreement and any
other documents to be delivered by it hereunder (i) are within the Collection Agent’s corporate
powers, (ii) have been duly authorized by all necessary corporate action, (iii) do not contravene
(1) the Collection Agent’s charter or by-laws, (2) any law, rule or regulation applicable to the
Collection Agent, (3) any contractual restriction binding on or affecting the Collection Agent or
its property or (4) any order, writ, judgment, award, injunction or decree binding on or affecting
the Collection Agent or its property, and (iv) do not result in or require the creation of any
lien, security interest or other charge or encumbrance upon or with respect to any of its
properties. This Agreement has been duly executed and delivered by the Collection Agent.

(3) No authorization or approval or other action by, and no notice to or filing with, any
governmental authority or regulatory body is required for the due execution, delivery and
performance by the Collection Agent of this Agreement or any other document to be delivered by it
hereunder.

(4) This Agreement constitutes the legal, valid and binding obligation of the Collection Agent
enforceable against the Collection Agent in accordance with its terms.

(5) The balance sheets of the Collection Agent and its Subsidiaries as at December 31, 2004,
and the related statements of income and retained earnings of the Collection Agent and its
Subsidiaries for the fiscal year then ended, copies of which have been furnished to the Agent,
fairly present the financial condition of the Collection Agent and its Subsidiaries as at such date
and the results of the operations of the Collection Agent and its Subsidiaries for the period ended
on such date, all in accordance with generally accepted accounting principles consistently applied,
and since December 31, 2004 there has been no material adverse change in the business, operations,
property or financial or other condition of the Collection Agent.

(6) There is no pending or, to the knowledge of Collection Agent, threatened action,
investigation or proceeding affecting the Collection Agent or any of its Subsidiaries before any
court, governmental agency or arbitrator which may materially adversely affect the financial
condition or operations of the Collection Agent or any of its Subsidiaries or the ability of the
Collection Agent to perform its obligations under this Agreement, or which purports to affect the
legality, validity or enforceability of this Agreement.

(7) The Collection Agent has no office or place of business in the province of Quebec, Canada.

(8) Each Receivable characterized in any Seller Report as an Eligible Receivable or as
included in the Net Receivables Pool Balance is, as of the date of such Seller Report, an Eligible
Receivable or properly included in the Net Receivables Pool Balance.

ARTICLE 5

COVENANTS

SECTION 5.1. Covenants of the Seller. Until the latest of the Facility Termination
Date or the date on which no Capital of or Yield on any Receivable Interest shall be outstanding or
the date all other amounts owed by the Seller hereunder to the Investors, the Banks or the Agent
are paid in full:

(1) Compliance with Laws, Etc. The Seller will comply in all material respects with
all applicable laws, rules, regulations and orders and preserve and maintain its corporate
existence, rights, franchises, qualifications, and privileges except to the extent that the failure
so to comply with such laws, rules and regulations or the failure so to preserve and maintain such
existence, rights, franchises, qualifications, and privileges would not materially adversely affect
the collectibility of the Receivables Pool or the ability of the Seller to perform its obligations
under the Transaction Documents.

(2) Offices, Records and Books of Account. The Seller will keep its principal place
of business and chief executive office and the office where it keeps its records concerning the
Pool Receivables at the address of the Seller set forth under its name on the signature pages to
this Agreement or, upon 30 days’ prior written notice to the Agent, at any other locations within
the United States. The Seller will not change its name or its state of organization, unless
(i) the Seller shall have provided the Agent with at least 30 days’ prior written notice thereof,
together with an updated Schedule IV, and (ii) no later than the effective date of such change, all
actions, documents and agreements reasonably requested by the Agent to protect and perfect the
Agent’s interest in the Receivables, the Related Security and the other assets of the Seller in
which a security interest is granted hereunder have been taken and completed. Upon confirmation by
the Agent to the Seller of the Agent’s receipt of any such notice (together with an updated
Schedule IV) and the completion or receipt of the actions, agreements and documents referred to in
clause (ii) of the preceding sentence, Schedule IV hereto shall, without further action by any
party, be deemed to be amended and replaced by the updated Schedule IV accompanying such notice.
The Seller also will maintain and implement administrative and operating procedures (including,
without limitation, an ability to recreate records evidencing Pool Receivables and related
Contracts in the event of the destruction of the originals thereof), and keep and maintain all
documents, books, records and other information reasonably necessary or advisable for the
collection of all Pool Receivables (including, without limitation, records adequate to permit the
daily identification of each Pool Receivable and all Collections of and adjustments to each
existing Pool Receivable).

(3) Performance and Compliance with Contracts and Credit and Collection Policy. The
Seller will, at its expense, timely and fully perform and comply with all material provisions,
covenants and other promises required to be observed by it under the Contracts related to the Pool
Receivables, and timely and fully comply in all material respects with the Credit and Collection
Policy in regard to each Pool Receivable and the related Contract.

(4) Sales, Liens, Etc. Except for the ownership and security interests created
hereunder in favor of the Agent, the Seller will not sell, assign (by operation of law or
otherwise) or otherwise dispose of, or create or suffer to exist any Adverse Claim upon or with
respect to, the Seller’s undivided interest in any Pool Receivable, Related Security, related
Contract or Collections, or upon or with respect to any account to which any Collections of any
Pool Receivable are sent, or assign any right to receive income in respect thereof.

(5) Extension or Amendment of Receivables. Except as provided in Section 6.02(c), the
Seller will not extend, amend or otherwise modify the terms of any Pool Receivable, or amend,
modify or waive any term or condition of any Contract related thereto.

(6) Change in Business or Credit and Collection Policy. The Seller will not make any
change in the character of its business or in the Credit and Collection Policy that would, in
either case, materially adversely affect the collectibility of the Receivables Pool or the ability
of the Seller to perform its obligations under this Agreement.

(7) Change in Payment Instructions to Obligors. The Seller will not add or terminate
any bank as a Lock-Box Bank from those listed in Schedule I to this Agreement, or make any change
in its instructions to Obligors regarding payments to be made to the Seller or payments to be made
to any Lock-Box Bank, unless the Agent shall have received notice of such addition, termination or
change (including an updated Schedule I) and a fully executed Lock-Box Agreement with each new
Lock-Box Bank.

(8) Deposits to Lock-Box Accounts. The Seller will instruct all Obligors to remit all
their payments in respect of Receivables to Lock-Box Accounts. If the Seller shall receive any
Collections directly, it shall immediately (and in any event within two Business Days) deposit the
same to a Lock-Box Account. The Seller will not deposit or otherwise credit, or cause or permit to
be so deposited or credited, to any Lock-Box Account cash or cash proceeds other than Collections
of Receivables.

(9) Marking of Records. At its expense, the Seller will mark its master data
processing records evidencing Pool Receivables and, at the Agent’s request following an Event of
Termination, a Non-Investment Grade Event (other than the 2005 Downgrade Event or the 2006
Downgrade Events) or an Incipient Event of Termination, related Contracts with a legend evidencing
that Receivable Interests related to such Pool Receivables and related Contracts have been sold in
accordance with this Agreement.

(10) Further Assurances. (i)  The Seller agrees from time to time, at its
expense, promptly to execute and deliver all further instruments and documents, and to take all
further actions, that may be necessary or desirable, or that the Agent may reasonably request, to
perfect, protect or more fully evidence the Receivable Interests purchased under this Agreement, or
to enable the Investors, the Banks or the Agent to exercise and enforce their respective rights and
remedies under this Agreement. Without limiting the foregoing, the Seller will, upon the request
of the Agent, execute and file such financing or continuation statements, or amendments thereto,
and such other instruments and documents, that may be necessary or desirable, or that the Agent may
reasonably request, to perfect, protect or evidence such Receivable Interests.

(1) The Seller authorizes the Agent to file financing or continuation
statements, and amendments thereto and assignments thereof, relating to the Pool
Receivables and the Related Security, the related Contracts and the Collections with
respect thereto.

(11) Reporting Requirements. The Seller will provide to the Agent (in multiple
copies, if requested by the Agent) the following:

(1) as soon as available and in any event within 45 days after the end of the
first three quarters and within 90 days after the end of the fourth fiscal quarter
of each fiscal year of the Seller, a balance sheet of the Seller as of the end of
such quarter and a statement of income and retained earnings of the Seller for the
period commencing at the end of the previous fiscal year and ending with the end of
such quarter, certified by the chief financial officer of the Seller;
provided that the financial information required to be delivered
under this clause for the fiscal quarters ended March 31, 2006, June 30, 2006 and
September 30, 2006 will not be required to be delivered until the earlier of (x) the
date 90 days after delivery of the annual report for the fiscal year of Ferro
Corporation ending December 31, 2005, and (y) January 15, 2007;

(2) as soon as possible and in any event within five days after the occurrence
of each Event of Termination or Incipient Event of Termination, a statement of the
chief financial officer of the Seller setting forth details of such Event of
Termination or Incipient Event of Termination and the action that the Seller has
taken and proposes to take with respect thereto;

(3) promptly after the filing or receiving thereof, copies of all reports and
notices that the Seller or any Affiliate files under ERISA with the Internal Revenue
Service or the Pension Benefit Guaranty Corporation or the U.S. Department of Labor
or that the Seller or any Affiliate receives from any of the foregoing or from any
multiemployer plan (within the meaning of Section 4001(a)(3) of ERISA) to which the
Seller or any Affiliate is or was, within the preceding five years, a contributing
employer, in each case in respect of the assessment of withdrawal liability or an
event or condition which could, in the aggregate, result in the imposition of
liability on the Seller and/or any such Affiliate in excess of $5,000,000;

(4) at least 30 days prior to any change in the name or jurisdiction of
incorporation of either Originator or the Seller, a notice setting forth the new
name or jurisdiction of organization and the effective date thereof;

(5) promptly after the Seller obtains knowledge thereof, notice of any
“Event of Termination” or “Facility Termination Date” under the Originator Purchase
Agreement;

(6) so long as any Capital shall be outstanding, as soon as possible and in any
event no later than the day of occurrence thereof, notice that an Originator has
stopped selling or contributing to the Seller, pursuant to the Originator Purchase
Agreement, all newly arising Originator Receivables;

(7) as soon as available and in any event within 50 days after the end of the
first three quarters of each fiscal year of the Seller and within 90 days after the
end of each fiscal year of the Seller, a certificate of the chief financial officer
or the treasurer of the Seller to the effect that, to the best of such officer’s
knowledge, no Event of Termination has occurred and is continuing or, if any Event
of Termination has occurred and is continuing, specifying the nature and extent
thereof;

(8) promptly after receipt thereof, copies of all notices received by the
Seller from the Originators under the Originator Purchase Agreement;

(9) as soon as available and in any event within 45 days after the end of each
of the first three quarters of each fiscal year of Ferro Corporation, the
consolidated balance sheet of Ferro Corporation and its consolidated Subsidiaries as
of the end of such quarter and the related statements of income and of cash flows
for the period commencing at the end of the previous fiscal year and ending with the
end of such quarter, certified by the chief financial officer of Ferro Corporation;
provided that the financial information required to be delivered
under this clause for the fiscal quarters ended March 31, 2006, June 30, 2006 and
September 30, 2006 will not be required to be delivered until the earlier of (x) the
date 90 days after delivery of the annual report for the fiscal year of Ferro
Corporation ending December 31, 2005, and (y) January 15, 2007;

(10) as soon as available and in any event within 90 days after the end of each
fiscal year of Ferro Corporation, a copy of the annual report for such year for
Ferro Corporation and its consolidated Subsidiaries, containing financial statements
for such year audited by independent public accountants of recognized national
standing;

(11) immediately upon obtaining knowledge thereof, and in any event on the day
such event occurs, notice that all indebtedness under the Credit Agreement has
become due and payable (whether by declaration or automatically);

(12) as soon as available and in any event by July 13, 2006, a balance sheet of
the Seller as of the end of the quarters ending June 30, 2004, September 30, 2004
and December 31, 2004 and a statement of income and retained earnings of the Seller
for the period commencing at the end of the previous fiscal year and ending with the
end of such quarter, certified by the chief financial officer of the Seller;

(1)

(13) as soon as available and in any event by November 15, 2006, a balance
sheet of the Seller as of the end of the fiscal quarters ending March 31, 2005,
June 30, 2005, September 30, 2005 and December 31, 2005 and a statement of income
and retained earnings of the Seller for the period commencing at the end of the
previous fiscal year and ending with the end of such quarter, certified by the chief
financial officer of the Seller;

(14) as soon as available and in any event by November 15, 2006, the
consolidated balance sheet of Ferro Corporation and its consolidated Subsidiaries as
of the end of the quarters ending June 30, 2005 and September 30, 2005 and the
related statements of income and of cash flows for the period commencing at the end
of the previous fiscal year and ending with the end of such quarter, certified by
the chief financial officer of Ferro Corporation;

(15) as soon as available and in any event by November 15, 2006, a copy of the
annual report for the fiscal year of Ferro Corporation ending December 31, 2005,
containing financial statements for such year audited by independent public
accountants of recognized national standing;

(16) on or after the date on which the Seller delivers to the Agent the
financial information relating to Ferro Corporation for the quarters and fiscal year
referenced in clauses (xiv) and (xv) above, the Seller shall also provide the Agent
with similar financial information for such prior quarters and fiscal years of Ferro
Corporation ending on or after June 30, 2004 as the Agent may request, to the extent
such information has not previously been provided to the Agent, and in any event
within five Business Days of such request;

(17) such other information respecting the Receivables or the condition or
operations, financial or otherwise, of the Seller as the Agent may from time to time
reasonably request.

Reports and financial statements required to be delivered pursuant to clauses (ix) and (x) of
this Section 5.01(k) shall be deemed to have been delivered on the date on which Ferro Corporation
posts such reports, or reports containing such financial statements, on Ferro Corporation’s website
on the Internet at www.ferro.com or when such reports, or reports containing such financial
statements, are posted on the SEC’s website at www.sec.gov; provided that Ferro Corporation
shall deliver paper copies of the reports and financial statements referred to in clauses (ix) and
(x) of this Section 5.01(k) to the Agent or any Investor or Bank who requests Ferro Corporation to
deliver such paper copies until written notice to cease delivering paper copies is given by the
Agent or such Investor or Bank, as applicable.

(12) Corporate Separateness. (i) The Seller shall at all times maintain at
least one independent director who (x) is not currently and has not been during the five years
preceding the date of this Agreement an officer, director or employee of an Affiliate of the Seller
or any Other Company, (y) is not a current or former officer or employee of the Seller and (z) is
not a stockholder of any Other Company or any of their respective Affiliates.

(1) The Seller shall not direct or participate in the management of any of the
Other Companies’ operations.

(2) The Seller shall conduct its business from an office separate from that of
the Other Companies (but which may be located in the same facility as one or more of
the Other Companies). The Seller shall have stationery and other business forms and
a mailing address and a telephone number separate from that of the Other Companies.

(3) The Seller shall at all times be adequately capitalized in light of its
contemplated business.

(4) The Seller shall at all times provide for its own operating expenses and
liabilities from its own funds.

(5) The Seller shall maintain its assets and transactions separately from those
of the Other Companies and reflect such assets and transactions in financial
statements separate and distinct from those of the Other Companies and evidence such
assets and transactions by appropriate entries in books and records separate and
distinct from those of the Other Companies. The Seller shall hold itself out to the
public under the Seller’s own name as a legal entity separate and distinct from the
Other Companies. The Seller shall not hold itself out as having agreed to pay, or
as being liable, primarily or secondarily, for, any obligations of the Other
Companies.

(6) The Seller shall not maintain any joint account with any Other Company or
become liable as a guarantor or otherwise with respect to any Debt or contractual
obligation of any Other Company.

(7) The Seller shall not make any payment or distribution of assets with
respect to any obligation of any Other Company or grant an Adverse Claim on any of
its assets to secure any obligation of any Other Company.

(8) The Seller shall not make loans, advances or otherwise extend credit to any
of the Other Companies other than Purchaser Loans on the terms and conditions set
forth in the Originator Purchase Agreement.

(9) The Seller shall hold regular duly noticed meetings of its Board of
Directors and make and retain minutes of such meetings.

(10) The Seller shall have bills of sale (or similar instruments of assignment)
and, if appropriate, UCC-1 financing statements, with respect to all assets
purchased from any of the Other Companies.

(1)

(11) The Seller shall not engage in any transaction with any of the Other
Companies, except as permitted by this Agreement and as contemplated by the
Originator Purchase Agreement.

(12) The Seller shall comply with (and cause to be true and correct) each of
the facts and assumptions contained under the caption “Assumptions” on pages 3 - 5
of the opinion of Squire, Sanders & Dempsey L.L.P., dated September 28, 2000, and
designated as Annex C to this Agreement.

(13) Originator Purchase Agreement. The Seller will not amend, waive or modify any
provision of the Originator Purchase Agreement (provided that the Seller may extend the
“Facility Termination Date” thereunder) or waive the occurrence of any “Event of Termination” under
the Originator Purchase Agreement, without in each case the prior written consent of the Agent.
The Seller will perform all of its obligations under the Originator Purchase Agreement in all
material respects and will enforce the Originator Purchase Agreement in accordance with its terms
in all material respects.

(14) Nature of Business. The Seller will not engage in any business other than the
purchase or acquisition of Receivables, Related Security and Collections from the Originators and
the transactions contemplated by this Agreement. The Seller will not create or form any
Subsidiary.

(15) Mergers, Etc. The Seller will not merge with or into or consolidate with or
into, or convey, transfer, lease or otherwise dispose of (whether in one transaction or in a series
of transactions), all or substantially all of its assets (whether now owned or hereafter
acquired) to, or acquire all or substantially all of the assets or capital stock or other ownership
interest of, or enter into any joint venture or partnership agreement with, any Person, other than
as contemplated by this Agreement and the Originator Purchase Agreement.

(16) Distributions, Etc. The Seller will not declare or make any dividend payment or
other distribution of assets, properties, cash, rights, obligations or securities on account of any
shares of any class of capital stock of the Seller, or return any capital to its shareholders as
such, or purchase, retire, defease, redeem or otherwise acquire for value or make any payment in
respect of any shares of any class of capital stock of the Seller or any warrants, rights or
options to acquire any such shares, now or hereafter outstanding; provided,
however, that the Seller may declare and pay cash dividends on its capital stock to its
shareholders so long as (i) no Event of Termination shall then exist or would occur as a result
thereof, (ii) such dividends are in compliance with all applicable law including the corporate law
of the State of Ohio, and (iii) such dividends have been approved by all necessary and appropriate
corporate action of the Seller.

(17) Debt. The Seller will not incur any Debt, other than any Debt incurred pursuant
to this Agreement and the Deferred Purchase Price.

(18) Certificate of Incorporation. The Seller will not amend or delete Article Third,
Fifth or Sixth of its certificate of incorporation.

(1)

(19) Tangible Net Worth. The Seller will (i) at all times, maintain Tangible Net
Worth equal to at least 3% of the Outstanding Balance of the Receivables at such time, (ii)
commencing June 29, 2006, accept transfers of Originator Receivables under the Originator Purchase
Agreement by the contribution of such Originator Receivables by Ferro Corporation to the Purchaser
until such time as the Tangible Net Worth is equal to at least 10.0% of the Outstanding Balance of
the Receivables, as contemplated by that certain amendment to the Originator Purchase Agreement
dated as of June 29, 2006, and (iii) maintain Tangible Net Worth at all times thereafter equal to
at least 10% of the Outstanding Balance of the Receivables at such time.

SECTION 5.2. Covenant of the Seller and the Originators. (a)  Until the latest of the
Facility Termination Date or the date on which no Capital of or Yield on any Receivable Interest
shall be outstanding or the date all other amounts owed by the Seller hereunder to the Investors,
the Banks or the Agent are paid in full, each of the Seller and the Originators will, at their
respective expense, from time to time during regular business hours as requested by the Agent,
permit the Agent or its agents or representatives (including independent public accountants, which
may be the Seller’s or an Originator’s independent public accountants), (i) to conduct periodic
audits of the Receivables, the Related Security and the related books and records and collections
systems of the Seller or either Originator, as the case may be, (ii) to examine and make copies of
and abstracts from all books, records and documents (including, without limitation, computer tapes
and disks) in the possession or under the control of the Seller or either Originator, as the case
may be, relating to Pool Receivables and the Related Security, including, without limitation, the
Contracts, and (iii) to visit the offices and properties of the Seller or either Originator, as the
case may be, for the purpose of examining such materials described in clause (ii) above, and to
discuss matters relating to Pool Receivables and the Related Security or the Seller’s or either
Originator’s performance under the Transaction Documents or under the Contracts with any of the
officers or employees of the Seller or the Originators, as the case may be, having knowledge of
such matters. In addition, upon the Agent’s request at least once per year, the Seller will, at
its expense, appoint independent public accountants (which may, with the consent of the Agent, be
the Seller’s regular independent public accountants), or utilize the Agent’s representatives or
auditors, to prepare and deliver to the Agent a written report with respect to the Receivables and
the Credit and Collection Policy (including, in each case, the systems, procedures and records
relating thereto) on a scope and in a form substantially as described in Annex F hereto.

(1) Seller and each Originator agree (each as to itself) that it will not take any action to
open a place of business in either the United Kingdom or Ireland without (i) providing the Agent
with at least ten Business Days prior written notice, and (ii) taking all actions that the Agent
may reasonably request pursuant to Section 5.01(j) or Section 6.05 with respect to the laws of the
United Kingdom or Ireland, as applicable.

ARTICLE 6

ADMINISTRATION AND COLLECTION

OF POOL RECEIVABLES

SECTION 6.1. Designation of Collection Agent. The servicing, administration and
collection of the Pool Receivables shall be conducted by the Collection Agent so designated
hereunder from time to time. Until the Agent gives notice to the Seller of the designation of a
new Collection Agent, Ferro Corporation is hereby designated as, and hereby agrees to perform the
duties and obligations of, the Collection Agent pursuant to the terms hereof. The Agent at any
time may designate as Collection Agent any Person (including itself) to succeed Ferro Corporation
or any successor Collection Agent, if such Person shall consent and agree to the terms hereof. The
Collection Agent may, with the prior consent of the Agent, subcontract with any other Person for
the servicing, administration or collection of the Pool Receivables (and the Agent hereby consents
to the subcontracting to Ferro Electronic Materials Inc. of the servicing, administration and
collection of Receivables originated by Ferro Electronic Materials Inc.). Any such subcontract
shall not affect the Collection Agent’s liability for performance of its duties and obligations
pursuant to the terms hereof, and any such subcontract shall automatically terminate upon
designation of a successor Collection Agent.

SECTION 6.2. Duties of Collection Agent. (a)  The Collection Agent shall take or
cause to be taken all such actions as may be necessary or advisable to collect each Pool Receivable
from time to time, all in accordance with applicable laws, rules and regulations, with reasonable
care and diligence, and in accordance with the Credit and Collection Policy. The Seller and the
Agent hereby appoint the Collection Agent, from time to time designated pursuant to Section 6.01,
as agent for themselves and for the Investors and the Banks to enforce their respective rights and
interests in the Pool Receivables, the Related Security and the related Contracts. In performing
its duties as Collection Agent, the Collection Agent shall exercise the same care and apply the
same policies as it would exercise and apply if it owned such Receivables and shall act in the best
interests of the Seller, the Investors and the Banks.

(1) The Collection Agent shall administer the Collections in accordance with the procedures
described in Section 2.04.

(2) If no Event of Termination, or Incipient Event of Termination shall have occurred and be
continuing, Ferro Corporation, while it is the Collection Agent, may, in accordance with the Credit
and Collection Policy, extend the maturity or adjust the Outstanding Balance of any Receivable as
Ferro Corporation deems appropriate to maximize Collections thereof, or otherwise amend or modify
the terms of any Receivable, provided that the classification of any such Receivable as a
Defaulted Receivable shall not be affected by any such extension.

(3) The Collection Agent shall hold in trust for the Seller and each Investor and Bank,
in accordance with their respective interests, all documents, instruments and records (including,
without limitation, computer tapes or disks) which evidence or relate to Pool Receivables. The
Collection Agent shall mark the Seller’s master data processing records evidencing Pool Receivables
and, at the written request of the Agent following the occurrence of an Event of Termination, a
Non-Investment Grade Event (other than the 2005 Downgrade Event and the 2006 Downgrade Events), or
an Incipient Event of Termination, each invoice evidencing each Pool Receivable and the related
Contract with a legend, acceptable to the Agent, evidencing that Receivable Interests therein have
been sold.

(4) The Collection Agent shall, as soon as practicable following receipt, turn over to the
Seller any cash collections or other cash proceeds received with respect to Receivables not
constituting Pool Receivables.

(5) The Collection Agent shall, from time to time at the request of the Agent, furnish to the
Agent (promptly after any such request) a calculation of the amounts set aside for the Investors
and the Banks pursuant to Section 2.04.

(6) Prior to the tenth Business Day of each month, the Collection Agent shall prepare and
forward to the Agent a Monthly Report relating to the Receivable Interests outstanding on the last
day of the immediately preceding month. At the request of the Agent, the Collection Agent shall
prepare and forward to the Agent reports relating to the Receivable Interests at more frequent
intervals.

The Collection Agent hereby elects to transmit Seller Reports to the Agent by electronic mail
(each, an “E-Mail Seller Report”), provided that (i) the Collection Agent shall
(A) make arrangements with VeriSign, Inc. (or another authenticating organization acceptable to the
Agent) to enable the Collection Agent to generate digital signatures and (B) safeguard the keys,
access codes or other means of generating its digital signature, (ii) each E-Mail Seller Report
shall be (A) formatted as the Agent may designate from time to time and shall be digitally signed
and (B) sent to the Agent at an electronic mail address designated by the Agent, and (iii) the
Agent (A) shall be authorized to rely upon such E-Mail Seller Report for purposes of this Agreement
to the same extent as if the contents thereof had been otherwise delivered to the Agent in
accordance with the terms of this Agreement and (B) may, upon notice in writing to the Collection
Agent and the Seller, terminate the right of the Collection Agent to transmit E-Mail Seller
Reports.

(7) If a Non-Investment Grade Event (but no BB Downgrade Event other than the 2005 Downgrade
Event or the 2006 Downgrade Events) shall have occurred and be continuing, on or prior to the close
of business on the second Business Day of each Week, the Collection Agent shall prepare and forward
to the Agent a Weekly Report which shall contain information related to the Receivables current as
of the close of business on the last Business Day of the preceding Week. If a BB Downgrade Event
(other than the 2005 Downgrade Event or the 2006 Downgrade Events) shall have occurred and be
continuing, by no later than 11:00 A.M. (New York City time) on each Business Day, the Collection
Agent shall prepare and forward to the Agent a Daily Report which shall contain information
relating to the Receivables current as of the close of business on the immediately prior Business
Day.

SECTION 6.3. Certain Rights of the Agent. (a)  The Agent is authorized at any
time to date, and to deliver to the Lock-Box Banks, the Notices of Effectiveness attached to the
Lock-Box Agreements. The Seller hereby confirms the transfer to the Agent pursuant to the Original
RPA of the exclusive ownership and control of the Lock-Box Accounts to which the Obligors of Pool
Receivables shall make payments. The Agent may notify the Obligors of Pool Receivables, at any
time and at the Seller’s expense, of the ownership of Receivable Interests under this Agreement.

(1) At any time following the designation of a Collection Agent other than Ferro Corporation
pursuant to Section 6.01 or following an Event Termination, a Non-Investment Grade Event (other
than the 2005 Downgrade Event or the 2006 Downgrade Events), or an Incipient Event of Termination:

(1) The Agent may direct the Obligors of Pool Receivables that all payments
thereunder be made directly to the Agent or its designee.

(2) At the Agent’s request and at the Seller’s expense, the Seller shall notify
each Obligor of Pool Receivables of the ownership of Receivable Interests under this
Agreement and direct that payments be made directly to the Agent or its designee.

(3) At the Agent’s request and at the Seller’s expense, the Seller and the
Collection Agent shall (A) assemble all of the documents, instruments and other
records (including, without limitation, computer tapes and disks) that evidence or
relate to the Pool Receivables and the related Contracts and Related Security, or
that are otherwise necessary or desirable to collect the Pool Receivables, and shall
make the same available to the Agent at a place selected by the Agent or its
designee, and (B) segregate all cash, checks and other instruments received by it
from time to time constituting Collections of Pool Receivables in a manner
acceptable to the Agent and, promptly upon receipt, remit all such cash, checks and
instruments, duly indorsed or with duly executed instruments of transfer, to the
Agent or its designee.

(4) The Seller authorizes the Agent to take any and all steps in the Seller’s
name and on behalf of the Seller that are necessary or desirable, in the
determination of the Agent, to collect amounts due under the Pool Receivables,
including, without limitation, endorsing the Seller’s name on checks and other
instruments representing Collections of Pool Receivables and enforcing the Pool
Receivables and the Related Security and related Contracts.

SECTION 6.4. Rights and Remedies. (a)  If the Collection Agent fails to perform any
of its obligations under this Agreement, the Agent may (but shall not be required to) itself
perform, or cause performance of, such obligation; and the Agent’s costs and expenses incurred in
connection therewith shall be payable by the Collection Agent.

(1) The Seller and the Originators shall perform their respective obligations under the
Contracts related to the Pool Receivables to the same extent as if Receivable Interests had not
been sold and the exercise by the Agent on behalf of the Investors and the Banks of their rights
under this Agreement shall not release the Collection Agent or the Seller from any of their duties
or obligations with respect to any Pool Receivables or related Contracts. None of the Agent, the
Investors or the Banks shall have any obligation or liability with respect to any Pool Receivables
or related Contracts, nor shall any of them be obligated to perform the obligations of the Seller
thereunder.

(2) In the event of any conflict between the provisions of Article VI of this Agreement and
Article VI of the Originator Purchase Agreement, the provisions of this Agreement shall control.

SECTION 6.5. Further Actions Evidencing Purchases. Each Originator agrees from time
to time, at its expense, to promptly execute and deliver all further instruments and documents, and
to take all further actions, that may be reasonably necessary or desirable, or that the Agent may
reasonably request, to perfect, protect or more fully evidence the Receivable Interests purchased
hereunder, or to enable the Investors, the Banks or the Agent to exercise and enforce their
respective rights and remedies hereunder. Without limiting the foregoing, each Originator will
(i) upon the request of the Agent, execute and file such financing or continuation statements, or
amendments thereto, and such other instruments and documents, that may be reasonably necessary or
desirable, or that the Agent may reasonably request, to perfect, protect or evidence such
Receivable Interests; (ii) mark its master data processing records evidencing the Pool Receivables
with a legend, acceptable to the Agent, evidencing that Receivable Interests therein have been
sold; and (iii) upon the request of the Agent following the occurrence of an Event of Termination,
a Non-Investment Grade Event (other than the 2005 Downgrade Event or the 2006 Downgrade Events), or
an Incipient Event of Termination, mark conspicuously each invoice evidencing each Pool Receivable
with a legend, acceptable to the Agent, evidencing that Receivable Interests therein have been
sold.

SECTION 6.6. Covenants of the Collection Agent and the Originators.
(a)  Audits. The Collection Agent will, from time to time during regular business hours as
requested by the Agent, permit the Agent, or its agents or representatives (including independent
public accountants, which may be the Collection Agent’s independent public accountants), (i) to
conduct periodic audits of the Receivables, the Related Security and the related books and records
and collections systems of the Collection Agent, (ii) to examine and make copies of and abstracts
from all books, records and documents (including, without limitation, computer tapes and disks) in
the possession or under the control of the Collection Agent relating to Pool Receivables and the
Related Security, including, without limitation, the Contracts, and (iii) to visit the offices and
properties of the Collection Agent for the purpose of examining such materials described in clause
(ii) above, and to discuss matters relating to Pool Receivables and the Related Security or the
Collection Agent’s performance hereunder with any of the officers or employees of the Collection
Agent having knowledge of such matters.

(1) Change in Credit and Collection Policy. The Originators will not make any change
in their respective Credit and Collection Policy that would impair the collectibility of any Pool
Receivable or the ability of Ferro Corporation (if it is acting as Collection Agent) to perform its
obligations under this Agreement.

SECTION 6.7. Indemnities by the Collection Agent. Without limiting any other
rights that the Agent, any Investor, any Bank, any of their respective Affiliates or members or any
of their respective officers, directors, employees or advisors (each, a “Special Indemnified
Party”) may have hereunder or under applicable law, and in consideration of its appointment as
Collection Agent, the Collection Agent hereby agrees to indemnify each Special Indemnified Party
from and against any and all claims, losses and liabilities (including reasonable attorneys’ fees)
(all of the foregoing being collectively referred to as “Special Indemnified Amounts”)
arising out of or resulting from any of the following (excluding, however, (a) Special Indemnified
Amounts to the extent found in a final non-appealable judgment of a court of competent jurisdiction
to have resulted from gross negligence or willful misconduct on the part of such Special
Indemnified Party, (b) recourse for uncollectible Receivables or (c) any income taxes or any other
tax or fee measured by income incurred by such Special Indemnified Party arising out of or as a
result of this Agreement or the ownership of Receivable Interests or in respect of any Receivable
or any Contract):

(1) any representation made or deemed made by the Collection Agent pursuant to
Section 4.02(h) hereof which shall have been incorrect in any respect when made or
any other representation or warranty or statement made or deemed made by the
Collection Agent under or in connection with this Agreement which shall have been
incorrect in any material respect when made;

(2) the failure by the Collection Agent to comply with any applicable law, rule
or regulation with respect to any Pool Receivable or Contract; or the failure of any
Pool Receivable or Contract to conform to any such applicable law, rule or
regulation;

(3) the failure to have filed, or any delay in filing, financing statements or
other similar instruments or documents under the UCC of any applicable jurisdiction
or other applicable laws with respect to any Receivables in, or purporting to be in,
the Receivables Pool, the Contracts and the Related Security and Collections in
respect thereof, whether at the time of any purchase or reinvestment or at any
subsequent time;

(4) any failure of the Collection Agent to perform its duties or obligations in
accordance with the provisions of this Agreement;

(5) the commingling of Collections of Pool Receivables at any time by the
Collection Agent with other funds;

(6) any action or omission by the Collection Agent reducing or impairing the
rights of the Investors or the Banks with respect to any Pool Receivable or the
value of any Pool Receivable;

(7) any Collection Agent Fees or other costs and expenses payable to any
replacement Collection Agent, to the extent in excess of the Collection Agent Fees
payable to the Collection Agent hereunder; or

(8) any claim brought by any Person other than a Special Indemnified
Party arising from any activity by the Collection Agent or its Affiliates in
servicing, administering or collecting any Receivable.

SECTION 6.8. Cash Collateral Account. The Collection Agent shall maintain or cause to
be maintained in the name of the Seller, for the benefit of the Investors and under the sole
dominion and control of the Agent, the Cash Collateral Account, with the Cash Collateral Bank, and
subject to the Cash Collateral Agreement.

SECTION 6.9. Collateral Advance Account. (a) On or prior to the date of the first
Cash Secured Advance Commencement Date, the Collection Agent, for the benefit of the Banks, shall
establish and maintain or cause to be established and maintained in the name of the Seller with
Citibank an account (such account being the “Collateral Advance Account” and Citibank in
such capacity, being the “Collateral Advance Account Bank”), such account bearing a
designation clearly indicating that the funds deposited therein are held for the benefit of the
Banks and entitled “Citicorp North America, Inc., as Agent — Collateral Advance Account for the
Ferro Receivables Purchase Agreement” and, in connection therewith, the Collection Agent, the
Seller, the Agent and the Collateral Advance Account Bank shall enter into the Collateral Advance
Account Agreement. The Collateral Advance Account shall be under the sole dominion and control of
the Agent for the benefit of the Banks which have made Cash Secured Advances, and neither the
Seller, the Collection Agent, nor any Person claiming by, through or under the Seller or the
Collection Agent, shall have any right, title or interest in, or any right to withdraw any amount
from, the Collateral Advance Account. Except as expressly provided in this Agreement, Citibank
agrees that it, in its capacity as Collateral Advance Account Bank, shall have no right of set off
or banker’s lien against, and no right to otherwise deduct from, any funds held in the Collateral
Advance Account for any amount owed to it by any Bank, the Investor, any Agent, the Seller or any
Originator. The tax identification no. associated with the Collateral Advance Account shall be
that of the Seller.

(1) The Agent will comply with (i) all written instructions directing disposition of the funds
in the Collateral Advance Account, (ii) all notifications and entitlement orders that the Agent
receives directing it to transfer or redeem any financial asset in the Collateral Advance Account,
and (iii) all other directions concerning the Collateral Advance Account, including, without
limitation, directions to distribute to any Bank proceeds of any such transfer or redemption or
interest or dividends on property in the Collateral Advance Account (any such instruction,
notification or direction referred to in clause (i), (ii) or (iii) above being a “Collateral
Advance Account Direction”), in the case of each of clauses (i), (ii) and (iii) above
originated by the relevant Bank (except as otherwise specified in subsection (c) of this
Section 6.09).

(2) Funds on deposit in the Collateral Advance Account shall, at the written direction
of the Seller, be invested by the Agent in Eligible Investments as instructed by the Seller in
writing (which may be a standing instruction). All such Eligible Investments shall be held in the
Collateral Advance Account by the Agent for the ratable benefit of the Banks which have made Cash
Secured Advances. Such funds shall be invested in Eligible Investments that will mature so that
funds will be available in amounts sufficient for the Agent to make each distribution as and when
required under the terms of this Agreement. All interest and other investment earnings (net of
losses and investment expenses) received on funds on deposit in the Collateral Advance Account, to
the extent such investment income is not needed to pay the Agent for the ratable benefit of the
Term-Out Banks under the terms of this Agreement, shall be added to the Collateral Advance Account.

ARTICLE 7

EVENTS OF TERMINATION

SECTION 7.1. Events of Termination. If any of the following events (“Events of
Termination”) shall occur and be continuing:

(1) The Collection Agent (if it is Ferro Corporation or any of its Affiliates) (i) shall fail
to perform or observe any term, covenant or agreement under this Agreement (other than as referred
to in clauses (ii), (iii), (iv) or (v) of this subsection (a)) and such failure shall remain
unremedied for five Business Days, or (ii) shall fail to make when due any payment or deposit to be
made by it under this Agreement, or (iii) shall fail to deliver any Monthly Report when due
pursuant to Section 6.02(g) and such failure shall remain unremedied for three Business Days, or
(iv) shall fail to deliver any Weekly Report when due pursuant to Section 6.02(h) and such failure
shall remain unremedied for more than two Business Days, or (v) shall fail to deliver any Daily
Report when due pursuant to Section 6.02(h) and such failure shall remain unremedied for more than
two Business Days, or shall fail to deliver when due more than two Daily Reports in any calendar
week; or

(2) Ferro Corporation shall fail to transfer to the Agent when requested any rights, pursuant
to this Agreement, which Ferro Corporation then has as Collection Agent, or the Seller or an
Originator shall fail to make any payment required under Section 2.04; or

(3) Any representation or warranty made or deemed made by the Seller or the Collection Agent
(or any of their respective officers) under or in connection with this Agreement or any other
Transaction Document or any information or report delivered by the Seller or the Collection Agent
pursuant to this Agreement or any other Transaction Document shall prove to have been incorrect or
untrue in any material respect when made or deemed made or delivered; or

(4) The Seller or an Originator shall fail to perform or observe any other term, covenant or
agreement contained in this Agreement on its part to be performed or observed and any such failure
shall remain unremedied for 10 days after written notice thereof shall have been given to the
Seller by the Agent; or

(5) The Seller or an Originator shall fail to pay any principal of or premium or
interest on any of its Debt which is outstanding in a principal amount of at least $5,000,000 in
the aggregate when the same becomes due and payable (whether by scheduled maturity, required
prepayment, acceleration, demand or otherwise), and such failure shall continue after the
applicable grace period, if any, specified in the agreement or instrument relating to such Debt; or
any other event shall occur or condition shall exist under any agreement or instrument relating to
any such Debt and shall continue after the applicable grace period, if any, specified in such
agreement or instrument, if the effect of such event or condition is to accelerate, or to permit
the acceleration of, the maturity of such Debt; or any such Debt shall be declared to be due and
payable, or required to be prepaid (other than by a regularly scheduled required prepayment),
redeemed, purchased or defeased, or an offer to repay, redeem, purchase or defease such Debt shall
be required to be made, in each case prior to the stated maturity thereof; or

(6) Any purchase or any reinvestment pursuant to this Agreement shall for any reason (other
than pursuant to the terms hereof) cease to create, or any Receivable Interest shall for any reason
cease to be, a valid and perfected first priority undivided percentage ownership interest to the
extent of the pertinent Receivable Interest in each applicable Pool Receivable and the Related
Security and Collections with respect thereto; or the security interest created pursuant to
Section 2.10 or 2.14(b) shall for any reason cease to be a valid and perfected first priority
security interest in the collateral security referred to in such sections; or

(7) The Seller or an Originator shall generally not pay its debts as such debts become due, or
shall admit in writing its inability to pay its debts generally, or shall make a general assignment
for the benefit of creditors; or any proceeding shall be instituted by or against the Seller or an
Originator seeking to adjudicate it a bankrupt or insolvent, or seeking liquidation, winding up,
reorganization, arrangement, adjustment, protection, relief, or composition of it or its debts
under any law relating to bankruptcy, insolvency or reorganization or relief of debtors, or seeking
the entry of an order for relief or the appointment of a receiver, trustee, custodian or other
similar official for it or for any substantial part of its property and, in the case of any such
proceeding instituted against it (but not instituted by it), either such proceeding shall remain
undismissed or unstayed for a period of 30 days, or any of the actions sought in such proceeding
(including, without limitation, the entry of an order for relief against, or the appointment of a
receiver, trustee, custodian or other similar official for, it or for any substantial part of its
property) shall occur; or the Seller or an Originator shall take any corporate action to authorize
any of the actions set forth above in this subsection (g); or

(8) As of the last day of any calendar month, either (i) the average of the Default Ratios for
such month and the two immediately preceding months shall exceed 6.0% or (ii) the average of the
Dilution Ratios for such month and the two immediately preceding months shall exceed 9.0% or
(iii) the Loss-to-Liquidation Ratio shall exceed 0.5%; or

(9) (A) At any time when a Non-Investment Grade Event does not exist, the sum of the
Receivable Interests shall on any Business Day be greater than 97% and shall remain greater than
97% for more than three Business Days; or (B) at any time when a Non-Investment Grade Event does
exist (so long as a BB Downgrade Event, including, without limitation, the 2005 Downgrade Event and
the 2006 Downgrade Events) shall not have occurred and be continuing), the sum of the Receivable
Interests shall on any Business Day be greater than 97% and shall remain greater than 97% for more
than one Business Day; or (C) after the occurrence and during the continuation of a BB Downgrade
Event, including, without limitation, the 2005 Downgrade Event, or either of the 2006 Downgrade
Events, the sum of the Receivable Interests shall (x) on any Business Day occurring during the
period beginning on December 20 of any year and ending on December 31 of such year or the period
beginning on June 24 of any year and ending on July 7 of such year, be greater than 92% and remain
greater that 92% for more than one Business Day, or (y) on any Business Day at any other time, be
greater than 95% and shall remain greater than 95% for more than one Business Day; or

(10) There shall have occurred any material adverse change in the financial condition or
operations of the Seller since September 28, 2000, or an Originator since December 31, 2004; or
there shall have occurred any event which may materially adversely affect the collectibility of the
Receivables Pool or the ability of the Seller or the Collection Agent to collect Pool Receivables
or otherwise perform its obligations under this Agreement; the Agent, the Investors and the Banks
hereby acknowledge that in the event the capital stock of Ferro Corporation is no longer listed for
trading on the New York Stock Exchange (a “Delisting”), such Delisting shall not, in and of
itself and excluding the circumstances leading to such Delisting or resulting therefrom, constitute
a material adverse change in the business, operations, property or financial or other condition of
Ferro Corporation; or

(11) An “Event of Termination” or “Facility Termination Date” shall occur under the Originator
Purchase Agreement, or the Originator Purchase Agreement shall cease to be in full force and
effect; or

(12) [Intentionally Omitted]

(13) At least 80% of the outstanding capital stock of the Seller and Ferro Electronic
Materials Inc. shall cease to be owned, directly or indirectly, by Ferro Corporation; or

(14) The Undertaking Agreement shall cease to be in full force and effect, or Ferro
Corporation shall fail to perform or observe any term, covenant or agreement contained in the
Undertaking Agreement on its part to be performed or observed and any such failure shall remain
unremedied for fifteen days after written notice thereof shall have been given by the Agent to the
Seller; or

(15) The occurrence of an event of default under the Credit Agreement arising as a result of
the breach of any financial covenant contained therein; or

(16) One or more judgments for the payment of money in an aggregate amount in excess of
$7,500,000 (except to the extent covered by insurance as to which the insurer has acknowledged such
coverage in writing) shall be rendered against (i) either Originator or any of their respective
Subsidiaries or any combination thereof or (ii) the Collection Agent or any of its Subsidiaries or
a combination thereof, and the same shall remain undischarged for a period of 60 consecutive days
during which execution shall not be effectively stayed, or any action shall be taken by a judgment
creditor to attach or levy upon any assets of either of the Originators or the Collection Agent or
any of their respective Subsidiaries to enforce any such judgment;

then, and in any such event, any or all of the following actions may be taken by notice to
the Seller: (x) the Investor or the Agent may declare the Facility Termination Date to have
occurred (in which case the Facility Termination Date shall be deemed to have occurred), (y) the
Agent may declare the Commitment Termination Date to have occurred (in which case the Commitment
Termination Date shall be deemed to have occurred), and (z) without limiting any right under this
Agreement to replace the Collection Agent, the Agent may designate another Person to succeed Ferro
Corporation as the Collection Agent; provided, that, automatically upon the occurrence of
any event (without any requirement for the passage of time or the giving of notice) described in
paragraph (g) of this Section 7.01, the Facility Termination Date shall occur, Ferro Corporation
(if it is then serving as the Collection Agent) shall cease to be the Collection Agent, and the
Agent or its designee shall become the Collection Agent. Upon any such declaration or designation
or upon such automatic termination, the Investors, the Banks and the Agent shall have, in addition
to the rights and remedies which they may have under this Agreement, all other rights and remedies
provided after default under the UCC and under other applicable law, which rights and remedies
shall be cumulative.

ARTICLE 8

THE AGENT

SECTION 8.1. Authorization and Action. Each Investor and each Bank hereby appoints
and authorizes the Agent to take such action as agent on its behalf and to exercise such powers
under this Agreement and the other Transaction Documents as are delegated to the Agent by the terms
hereof, together with such powers as are reasonably incidental thereto.

SECTION 8.2. Agent’s Reliance, Etc. Neither the Agent nor any of its directors,
officers, agents or employees shall be liable for any action taken or omitted to be taken by it or
them as Agent under or in connection with this Agreement (including, without limitation, the
Agent’s servicing, administering or collecting Pool Receivables as Collection Agent) or any other
Transaction Document, except for its or their own gross negligence or willful misconduct. Without
limiting the generality of the foregoing, the Agent: (a) may consult with legal counsel (including
counsel for the Seller and the Collection Agent), independent certified public accountants and
other experts selected by it and shall not be liable for any action taken or omitted to be taken in
good faith by it in accordance with the advice of such counsel, accountants or experts; (b) makes
no warranty or representation to any Investor or Bank (whether written or oral) and shall not be
responsible to any Investor or Bank for any statements, warranties or representations (whether
written or oral) made in or in connection with this Agreement or any other Transaction Document;
(c) shall not have any duty to ascertain or to inquire as to the performance or observance of any
of the terms, covenants or conditions of this Agreement on the part of the Seller or the Collection
Agent or to inspect the property (including the books and records) of the Seller or the Collection
Agent; (d) shall not be responsible to any Investor or Bank for the due execution, legality,
validity, enforceability, genuineness, sufficiency or value of this Agreement or any other
instrument or document furnished pursuant hereto; and (e) shall incur no liability under or in
respect of this Agreement or any other Transaction Document by acting upon any notice (including
notice by telephone), consent, certificate or other instrument or writing (which may be by
telecopier or telex) believed by it to be genuine and signed or sent by the proper party or
parties.

SECTION 8.3. CNAI and Affiliates. The obligation of Citibank to purchase
Receivable Interests under this Agreement may be satisfied by CNAI or any of its Affiliates. With
respect to any Receivable Interest or interest therein owned by it, CNAI shall have the same rights
and powers under this Agreement as any Bank and may exercise the same as though it were not the
Agent. CNAI and any of its Affiliates may generally engage in any kind of business with the
Seller, the Collection Agent or any Obligor, any of their respective Affiliates and any Person who
may do business with or own securities of the Seller, the Collection Agent or any Obligor or any of
their respective Affiliates, all as if CNAI were not the Agent and without any duty to account
therefor to the Investors or the Banks.

SECTION 8.4. Bank’s Purchase Decision. Each Bank acknowledges that it has,
independently and without reliance upon the Agent, any of its Affiliates or any other Bank and
based on such documents and information as it has deemed appropriate, made its own evaluation and
decision to enter into this Agreement. Each Bank also acknowledges that it will, independently and
without reliance upon the Agent, any of its Affiliates or any other Bank and based on such
documents and information as it shall deem appropriate at the time, continue to make its own
decisions in taking or not taking action under this Agreement.

SECTION 8.5. Indemnification of Agent. Each Bank agrees to indemnify the Agent (to
the extent not reimbursed by the Seller or the Collection Agent), ratably according to the amount
of its Bank Commitment (or, if the Bank Commitments have been terminated, then ratably according to
the respective amounts of Capital of the Receivable Interests (or interests therein) owned by it or
which it may be required to purchase under the Asset Purchase Agreement), from and against any and
all liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs,
expenses or disbursements of any kind or nature whatsoever which may be imposed on, incurred by, or
asserted against the Agent in any way relating to or arising out of this Agreement or the other
Transaction Documents or any action taken or omitted by the Agent under this Agreement or the other
Transaction Documents, provided that no Bank shall be liable for any portion of such
liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or
disbursements resulting from the Agent’s gross negligence or willful misconduct.

ARTICLE 9

INDEMNIFICATION

SECTION 9.1. Indemnities by the Seller. Without limiting any other rights that
the Agent, the Investors, the Banks, any of their respective Affiliates or members or any of their
respective officers, directors, employees or advisors (each, an “Indemnified Party”) may
have hereunder or under applicable law, the Seller hereby agrees to indemnify each Indemnified
Party from and against any and all claims, losses and liabilities (including reasonable attorneys’
fees) (all of the foregoing being collectively referred to as “Indemnified Amounts”)
arising out of or resulting from this Agreement or the other Transaction Documents or the use of
proceeds of purchases or reinvestments or the ownership of Receivable Interests or in respect of
any Receivable or any Contract, excluding, however, (a) Indemnified Amounts to the extent found in
a final non-appealable judgment of a court of competent jurisdiction to have resulted from gross
negligence or willful misconduct on the part of such Indemnified Party, (b) recourse (except as
otherwise specifically provided in this Agreement) for uncollectible Receivables or (c) any income
taxes incurred by such Indemnified Party arising out of or as a result of this Agreement or the
ownership of Receivable Interests or in respect of any Receivable or any Contract. Without
limiting or being limited by the foregoing, the Seller shall pay on demand to each Indemnified
Party any and all amounts necessary to indemnify such Indemnified Party from and against any and
all Indemnified Amounts relating to or resulting from any of the following:

(1) the creation of an undivided percentage ownership interest in any
Receivable which purports to be part of the Net Receivables Pool Balance but which
is not at the date of the creation of such interest an Eligible Receivable or which
thereafter ceases to be an Eligible Receivable;

(2) any representation or warranty or statement made or deemed made by the
Seller (or any of its officers) under or in connection with this Agreement and the
other Transaction Documents which shall have been incorrect in any material respect
when made;

(3) the failure by the Seller or an Originator to comply with any applicable
law, rule or regulation with respect to any Pool Receivable or the related Contract;
or the failure of any Pool Receivable or the related Contract to conform to any such
applicable law, rule or regulation;

(4) the failure to vest in the Investors or the Banks, as the case may be,
(a) a perfected undivided percentage ownership interest, to the extent of each
Receivable Interest, in the Receivables in, or purporting to be in, the Receivables
Pool and the Related Security and Collections in respect thereof, or (b) a perfected
security interest as provided in Sections 2.10 and 2.14(b), in each case free and
clear of any Adverse Claim;

(5) the failure to have filed, or any delay in filing, financing statements or
other similar instruments or documents under the UCC of any applicable jurisdiction
or other applicable laws with respect to any Receivables in, or purporting to be in,
the Receivables Pool and the Related Security and Collections in respect thereof,
whether at the time of any purchase or reinvestment or at any subsequent time;

(6) any dispute, claim, offset or defense (other than discharge in bankruptcy
of the Obligor) of the Obligor to the payment of any Receivable in, or purporting to
be in, the Receivables Pool (including, without limitation, a defense based on such
Receivable or the related Contract not being a legal, valid and binding obligation
of such Obligor enforceable against it in accordance with its terms), or any other
claim resulting from the sale of the merchandise or services related to such
Receivable or the furnishing or failure to furnish such merchandise or services or
relating to collection activities with respect to such Receivable (if such
collection activities were performed by the Seller or any of its Affiliates acting
as Collection Agent);

(7) any failure of the Seller to perform its duties or obligations in
accordance with the provisions hereof or to perform its duties or obligations under
the Contracts;

(8) any products liability or other claim arising out of or in connection with
merchandise, insurance or services which are the subject of any Contract;

(9) the commingling of Collections of Pool Receivables at any time with other
funds;

(10) any investigation, litigation or proceeding related to this Agreement or
the use of proceeds of purchases or reinvestments or the ownership of Receivable
Interests or in respect of any Receivable or Related Security or Contract;

(11) any failure of the Seller to comply with its covenants contained in this
Agreement or any other Transaction Document; or

(12) any claim brought by any Person other than an Indemnified Party arising
from any activity by the Seller or any Affiliate of the Seller in servicing,
administering or collecting any Receivable.

ARTICLE 10

MISCELLANEOUS

SECTION 10.1. Amendments, Etc. No amendment or waiver of any provision of this
Agreement or consent to any departure by the Seller therefrom shall be effective unless in a
writing signed by the Agent, as agent for the Investors and the Banks (and, in the case of any
amendment, also signed by the Seller), and then such amendment, waiver or consent shall be
effective only in the specific instance and for the specific purpose for which given;
provided, however, that no amendment, waiver or consent shall, unless in writing
and signed by the Collection Agent in addition to the Agent, affect the rights or duties of the
Collection Agent under this Agreement. Notwithstanding any other provision of this Section 10.01,
Schedule IV hereto may be amended in accordance with the procedures set forth in Section 5.01(b).
No failure on the part of the Investors, the Banks or the Agent to exercise, and no delay in
exercising, any right hereunder shall operate as a waiver thereof; nor shall any single or partial
exercise of any right hereunder preclude any other or further exercise thereof or the exercise of
any other right.

SECTION 10.2. Notices, Etc. All notices and other communications hereunder
shall, unless otherwise stated herein, be in writing (which shall include facsimile communication)
and faxed or delivered, to each party hereto, at its address set forth under its name on the
signature pages hereof or at such other address as shall be designated by such party in a written
notice to the other parties hereto. Notices and communications by facsimile shall be effective
when sent (and shall be followed by hard copy sent by regular mail), and notices and communications
sent by other means shall be effective when received.

SECTION 10.3. Assignability. (a)  This Agreement and the Investors’ rights and
obligations herein (including ownership of each Receivable Interest) shall be assignable by the
Investors and their successors and assigns (including, without limitation, pursuant to any Asset
Purchase Agreement). Each assignor of a Receivable Interest or any interest therein shall notify
the Agent and the Seller of any such assignment. Each assignor of a Receivable Interest or any
interest therein may, in connection with any such assignment or participation, disclose to the
assignee or participant any information relating to the Seller or an Originator, including the
Receivables, furnished to such assignor by or on behalf of the Seller or by the Agent.

(1) Each Bank may assign to any Eligible Assignee or to any other Bank all or a portion of its
rights and obligations under this Agreement (including, without limitation, all or a portion of its
Bank Commitment and any Receivable Interests or interests therein owned by it); provided,
however, that

(1) each such assignment shall be of a constant, and not a varying, percentage of all rights
and obligations under this Agreement,

(2) the amount being assigned pursuant to each such assignment (determined as of the date of
the Assignment and Acceptance Agreement with respect to such assignment) shall in no event be less
than the lesser of (x) $10,000,000 and (y) all of the assigning Bank’s Bank Commitment,

(3) the parties to each such assignment shall execute and deliver to the Agent, for its
acceptance and recording in the Register, an Assignment and Acceptance Agreement, together with a
processing and recordation fee of $2,500, and

(4) concurrently with such assignment, such assignor Bank shall assign to such assignee Bank
or other Eligible Assignee an equal percentage of its rights and obligations under the Asset
Purchase Agreement (or, if such assignor Bank is Citibank, it shall arrange for such assignee Bank
or other Eligible Assignee to become a party to the Asset Purchase Agreement for a maximum Capital
amount equal to the assignee’s Bank Commitment).

Upon such execution, delivery, acceptance and recording (pursuant to Section10.03(c)), from
and after the effective date specified in such Assignment and Acceptance Agreement, (x) the
assignee thereunder shall be a party to this Agreement and, to the extent that rights and
obligations hereunder have been assigned to it pursuant to such Assignment and Acceptance
Agreement, have the rights and obligations of a Bank hereunder and (y) the assigning Bank shall, to
the extent that rights and obligations hereunder have been assigned by it pursuant to such
Assignment and Acceptance Agreement, relinquish such rights and be released from such obligations
under this Agreement (and, in the case of an Assignment and Acceptance Agreement covering all or
the remaining portion of an assigning Bank’s rights and obligations under this Agreement, such Bank
shall cease to be a party hereto).

(2) The Agent shall maintain at its address referred to in Section 10.02 of this
Agreement a copy of each Assignment and Acceptance Agreement delivered to and accepted by it and a
register for the recordation of the names and addresses of the Banks and the Bank Commitment of,
and aggregate outstanding Capital of Receivable Interests or interests therein owned by, each Bank
from time to time (the “Register”). The entries in the Register shall be conclusive and
binding for all purposes, absent manifest error, and the Seller, the Originators, the Agent and the
Banks may treat each person whose name is recorded in the Register as a Bank under this Agreement
for all purposes of this Agreement. The Register shall be available for inspection by the Seller,
the Collection Agent, any Originator, or any Bank at any reasonable time and from time to time upon
reasonable prior notice. Upon its receipt of an Assignment and Acceptance Agreement executed by an
assigning Bank and an Eligible Assignee, the Agent shall, if such Assignment and Acceptance
Agreement has been completed, (i) accept such Assignment and Acceptance Agreement, (ii) record the
information contained therein in the Register and (iii) give prompt notice thereof to the Seller.

(3) Notwithstanding any other provision of this Section 10.03, any Bank may at any time pledge
or grant a security interest in all or any portion of its rights (including, without limitation,
rights to payment of Capital and Yield) under this Agreement or under the Asset Purchase Agreement
to secure obligations of such Bank to a Federal Reserve Bank, without notice to or consent of the
Seller or the Agent; provided that no such pledge or grant of a security interest shall
release a Bank from any of its obligations hereunder or under the Asset Purchase Agreement, as the
case may be, or substitute any such pledgee or grantee for such Bank as a party hereto or to the
Asset Purchase Agreement, as the case may be.

(4) Each Bank may sell participations to one or more banks or other entities in or to all or a
portion of its rights and obligations under this Agreement (including, without limitation, all or a
portion of its Bank Commitment and the Receivable Interests or interests therein owned by it);
provided, however, that

(1) such Bank’s obligations under this Agreement (including, without limitation, its Bank
Commitment to the Seller hereunder) shall remain unchanged,

(2) such Bank shall remain solely responsible to the other parties to this Agreement for the
performance of such obligations and

(3) concurrently with such participation, the selling Bank shall sell to such bank or other
entity a participation in an equal percentage of its rights and obligations under the Asset
Purchase Agreement.

The Agent, the other Banks and the Seller shall have the right to continue to deal solely and
directly with such selling Bank in connection with such Bank’s rights and obligations under this
Agreement.

(5) This Agreement and the rights and obligations of the Agent herein shall be assignable by
the Agent and its successors and assigns.

(6) The Seller may not assign its rights or obligations hereunder or any interest
herein without the prior written consent of the Agent.

(7) CAFCO may, without the consent of the Seller, sell participations to one or more banks or
other entities (each, a “Participant”) in all or a portion of its rights and obligations
hereunder (including the outstanding Receivable Interests); provided that following the
sale of a participation under this Agreement (i) the obligations of CAFCO shall remain unchanged,
(ii) CAFCO shall remain solely responsible to the other parties hereto for the performance of such
obligations and (iii) the Seller, the Agent, and the Banks shall continue to deal solely and
directly with CAFCO in connection with CAFCO’s rights and obligations under this Agreement. Any
agreement or instrument pursuant to which CAFCO sells such a participation shall provide that the
Participant shall not have any right to direct the enforcement of this Agreement or the other
Transaction Documents or to approve any amendment, modification or waiver of any provision of this
Agreement or the other Transaction Documents; provided that such agreement or instrument
may provide that CAFCO will not, without the consent of the Participant, agree to any amendment,
modification or waiver that (i) reduces the amount of Capital or Yield that is payable on account
of any Receivable Interest or delays any scheduled date for payment thereof or (ii) reduces any
fees payable by the Seller to the Agent (to the extent relating to payments to the Participant) or
delays any scheduled date for payment of such fees. In the absence of such provision from any
participation agreement or instrument, the restrictions set forth in the immediately foregoing
sentence shall nevertheless apply to the rights of the applicable Participant. The Seller
acknowledges and agrees that CAFCO’s source of funds may derive in part from its Participants.
Accordingly, references in Sections 2.08, 2.09, 6.07, 9.01 and 10.04 and the other terms and
provisions of this Agreement and the other Transaction Documents to determinations, reserve and
capital adequacy requirements, expenses, increased costs, reduced receipts and the like as they
pertain to CAFCO shall be deemed also to include those of its Participants. CAFCO or the Agent
may, in connection with any such participation, disclose to Participants and potential Participants
any information relating to the Seller or the Originators, including the Receivables, furnished to
CAFCO or the Agent by or on behalf of the Seller; provided that, prior to any such
disclosure, such Participant or potential Participant agrees to preserve the confidentiality of any
such information which is confidential in accordance with the provisions of Section 10.06 hereof.
Any interest sold by CAFCO to a Bank or its designee under the Asset Purchase Agreement shall not
be considered a participation for the purpose of this Section 10.03(h) (and the Bank or its
designee shall not be considered a Participant as a result thereof).

SECTION 10.4. Costs, Expenses and Taxes. (a)  In addition to the rights of
indemnification granted under Section 9.01 hereof, the Seller agrees to pay on demand all costs and
expenses in connection with the preparation, execution, delivery and administration (including
periodic auditing and the other activities contemplated in Section 5.02) of this Agreement, any
Asset Purchase Agreement and the other documents and agreements to be delivered hereunder,
including, without limitation, the reasonable fees and out-of-pocket expenses of counsel for the
Agent, CNAI, CAFCO, Citibank, and their respective Affiliates with respect thereto and with respect
to advising the Agent, CNAI, CAFCO, Citibank and their respective Affiliates as to their rights and
remedies under this Agreement, and all reasonable costs and expenses, if any (including reasonable
counsel fees and expenses), of the Agent, CNAI, the Investors, the Banks and their respective
Affiliates, in connection with the enforcement of this Agreement and the other documents and
agreements to be delivered hereunder.

(1) In addition, the Seller shall pay (i) to the extent not included in the calculation of
Yield, any and all commissions of placement agents and dealers in respect of commercial paper notes
issued to fund the purchase or maintenance of any Receivable Interest, (ii) any and all reasonable
costs and expenses of any issuing and paying agent or other Person responsible for the
administration of CAFCO’s commercial paper program in connection with the preparation, completion,
issuance, delivery or payment of commercial paper notes issued to fund the purchase or maintenance
of any Receivable Interest, and (iii) any and all stamp and other taxes and fees payable in
connection with the execution, delivery, filing and recording of this Agreement or the other
documents or agreements to be delivered hereunder, and agrees to save each Indemnified Party
harmless from and against any liabilities with respect to or resulting from any delay in paying or
omission to pay such taxes and fees.

(2) The Seller also shall pay on demand all other costs, expenses and taxes (excluding the
cost of auditing CAFCO’s books by certified public accountants, the cost of rating CAFCO’s
commercial paper by independent financial rating agencies, and income taxes) incurred by CAFCO or
any partner of CAFCO (“Other Costs”), including the taxes (excluding income taxes)
resulting from CAFCO’s operations, and the reasonable fees and out-of-pocket expenses of counsel
for any partner of CAFCO with respect to advising as to rights and remedies under this Agreement,
the enforcement of this Agreement or advising as to matters relating to CAFCO’s operations;
provided that the Seller and any other Persons who from time to time sell receivables or
interests therein to CAFCO (“Other Sellers”) each shall be liable for such Other Costs
ratably in accordance with the usage under their respective facilities; and provided
further that if such Other Costs are attributable to the Seller and not attributable to any
Other Seller, the Seller shall be solely liable for such Other Costs.

SECTION 10.5. No Proceedings; Waiver of Consequential Damages. (a) Each of the
Seller, the Agent, the Collection Agent, each Originator, each Investor, each Bank, each assignee
of a Receivable Interest or any interest therein and each entity which enters into a commitment to
purchase Receivable Interests or interests therein hereby agrees that it will not institute against
CAFCO any proceeding of the type referred to in Section 7.01(g) so long as any commercial paper or
other senior indebtedness issued by CAFCO shall be outstanding or there shall not have elapsed one
year plus one day since the last day on which any such commercial paper or other senior
indebtedness shall have been outstanding.

(1) Each of the Originators, the Collection Agent and the Seller agree that no Indemnified
Party shall have any liability to them or any of their securityholders or creditors in connection
with this Agreement, the other Transaction Documents or the transactions contemplated thereby on
any theory of liability for any special, indirect, consequential or punitive damages (including,
without limitation, any loss of profits, business or anticipated savings).

SECTION 10.6. Confidentiality. (a)  The Seller, each Originator and the
Collection Agent each agrees to maintain the confidentiality of this Agreement in communications
with third parties and otherwise; provided that this Agreement may be disclosed (i) to
third parties to the extent such disclosure is made pursuant to a written agreement of
confidentiality in form and substance reasonably satisfactory to the Agent, (ii) to the legal
counsel and auditors of the Seller, the Originators and the Collection Agent if they agree to hold
it confidential and (iii) to the extent required by applicable law or regulation or by any court,
regulatory body or agency having jurisdiction over the Seller, the Originators or the Collection
Agent (including, without limitation, the filing of this Agreement with the SEC as an exhibit to an
annual or quarterly report under the Securities Exchange Act of 1934); and provided,
further, that such party shall have no obligation of confidentiality in respect of any
information which may be generally available to the public or becomes available to the public
through no fault of such party.

(1) Notwithstanding any other provision herein or in any other Transaction Document, each
Investor, each Bank and the Agent hereby confirms that the Seller, the Originator and the
Collection Agent (and each employee, representative or other agent of each such party) may disclose
to any and all Persons, without limitation of any kind, the U.S. tax treatment and U.S. tax
structure of the transaction contemplated by this Agreement and the other Transaction Documents.

SECTION 10.7. GOVERNING LAW. THIS AGREEMENT SHALL, IN ACCORDANCE WITH SECTION 5-1401
OF THE GENERAL OBLIGATIONS LAW OF THE STATE OF NEW YORK, BE GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK WITHOUT REGARD TO ANY CONFLICT OF LAWS PRINCIPLES
THEREOF THAT WOULD CALL FOR THE APPLICATION OF THE LAWS OF ANY OTHER JURISDICTION, EXCEPT TO THE
EXTENT THAT, PURSUANT TO THE UCC OF THE STATE OF NEW YORK, THE PERFECTION AND THE EFFECT OF
PERFECTION OR NON-PERFECTION OF THE INTERESTS OF THE INVESTORS AND THE BANKS IN THE RECEIVABLES,
THE ORIGINATOR PURCHASE AGREEMENT AND THE UNDERTAKING AGREEMENT ARE GOVERNED BY THE LAWS OF A
JURISDICTION OTHER THAN THE STATE OF NEW YORK; PROVIDED, HOWEVER, THAT SECTION
2.02(d) SHALL BE GOVERNED BY THE LAWS OF THE FEDERAL REPUBLIC OF GERMANY.

SECTION 10.8. Execution in Counterparts. This Agreement may be executed in any number
of counterparts, each of which when so executed shall be deemed to be an original and all of which
when taken together shall constitute one and the same agreement.

SECTION 10.9. Survival of Termination. The provisions of Sections 2.08, 2.09, 6.07,
9.01, 10.04, 10.05 and 10.06 shall survive any termination of this Agreement.

SECTION 10.10. Consent to Jurisdiction. (a) Each party hereto hereby
irrevocably submits to the non-exclusive jurisdiction of any New York State or Federal court
sitting in New York City in any action or proceeding arising out of or relating to this Agreement
or the other Transaction Documents, and each party hereto hereby irrevocably agrees that all claims
in respect of such action or proceeding may be heard and determined in such New York State court
or, to the extent permitted by law, in such Federal court. The parties hereto hereby irrevocably
waive, to the fullest extent they may effectively do so, the defense of an inconvenient forum to
the maintenance of such action or proceeding. The parties hereto agree that a final judgment in
any such action or proceeding shall be conclusive and may be enforced in other jurisdictions by
suit on the judgment or in any other manner provided by law.

(1) Each of the Seller, the Collection Agent and the Originators consents to the service of
any and all process in any such action or proceeding by the mailing of copies of such process to it
at its address specified in Section 10.02. Nothing in this Section 10.10 shall affect the right of
the Investors, any Bank or the Agent to serve legal process in any other manner permitted by law.

SECTION 10.11. WAIVER OF JURY TRIAL. EACH PARTY HERETO HEREBY WAIVES, TO THE MAXIMUM
EXTENT PERMITTED BY APPLICABLE LAW, TRIAL BY JURY IN ANY JUDICIAL PROCEEDING INVOLVING, DIRECTLY OR
INDIRECTLY, ANY MATTER (WHETHER SOUNDING IN TORT, CONTRACT OR OTHERWISE) IN ANY WAY ARISING OUT OF,
RELATED TO, OR CONNECTED WITH THIS AGREEMENT OR ANY DOCUMENT EXECUTED OR DELIVERED PURSUANT HERETO.

SECTION 10.12. Judgment. (a)  If for the purposes of obtaining judgment in any court
it is necessary to convert a sum due hereunder in U.S. Dollars into another currency, the parties
hereto agree, to the fullest extent that they may effectively do so, that the rate of exchange used
shall be that at which in accordance with normal banking procedures the Agent or the Investors
could purchase U.S. Dollars with such other currency at New York, New York on the Business Day
preceding that on which final judgment is given.

(1) The obligation of the Seller in respect of any sum due from it to the Agent or the
Investors hereunder shall, notwithstanding any judgment in a currency other than U.S. Dollars, be
discharged only to the extent that on the Business Day following receipt by the Agent or the
Investors (as the case may be) of any sum adjudged to be so due in such other currency the Agent or
the Investors (as the case may be) may in accordance with normal banking procedures purchase U.S.
Dollars with such other currency; if the U.S. Dollars so purchased are less than the sum originally
due to the Agent or the Investors (as the case may be) in U.S. Dollars, the Seller agrees, as a
separate obligation and notwithstanding any such judgment, to indemnify the Agent or the Investors
(as the case may be) against such loss, and if the U.S. Dollars so purchased exceed the sum
originally due to the Agent or the Investors (as the case may be) in U.S. Dollars, the Agent or the
Investors (as the case may be) shall remit to the Seller such excess.

SECTION 10.13. Acknowledgment. Each of the parties hereto acknowledges and agrees
that the amendment and restatement of the Original RPA on the terms and conditions set forth herein
shall not in any way affect any sales, transfers, assignments or security interest grants effected
pursuant to the Original RPA or any representations, warranties, covenants or indemnities made by
the Seller or the Collection Agent with respect to such sales, transfers, assignments or security
interest grants or any rights or remedies of the Agent or the Investors with respect thereto. Each
of the parties hereto confirms all sales, transfers, assignments and security interests effected
pursuant to the Original RPA.

SECTION 1.1.

[Remainder of page intentionally left blank]

2

IN WITNESS WHEREOF, the parties have caused this Agreement to be executed by their
respective officers thereunto duly authorized, as of the date first above written.

	 	 	 	 	 
	SELLER:
	 	FERRO FINANCE CORPORATION

	 
	 	By:
	 
	 	Rhonda S. Ferguson
	 
	 	Secretary
	 
	 	1000 Lakeside Avenue, Suite A
	 
	 	Cleveland, OH  44114

	 
	 	Facsimile No. ______________

	INVESTOR:
	 	CAFCO, LLC

	 
	 	By:Citicorp North America,

	 
	 	Inc., as Attorney-in-Fact

	 
	 	By:
	 
	 	Vice President

	 
	 	450 Mamaroneck Avenue
	 
	 	Harrison, N.Y.  10528

	 
	 	Attention:  Global Securitization

	 
	 	Facsimile No. 914-899-7890

	AGENT:
	 	CITICORPNORTH AMERICA, INC.,

	 
	 	as Agent

	 
	 	By:

Vice President

450 Mamaroneck Avenue

Harrison, N.Y. 10528

Attention: Global Securitization

Facsimile No. 914-899-7890

	 	 	 	 	 
	ORIGINATOR: FERRO E
	 	LECTRONIC MATERIALS INC.

	 
	 	By:
	 
	 	Rhonda S. Ferguson
	 
	 	Assistant Secretary
	 
	 	1000 Lakeside Avenue
	 
	 	Cleveland, OH  44114

	 
	 	Facsimile No. (216) 875-6195

	ORIGINATOR AND
	 	FERRO CORPORATION

	COLLECTION AGENT:
	 	 	 	 
	 
	 	By:
	 
	 	Rhonda S. Ferguson
	 
	 	Assistant Secretary
	 
	 	1000 Lakeside Avenue
	 
	 	Cleveland, OH  44114

	 
	 	Facsimile No. (216) 875-6195

	BANK:
	 	CITIBANK, N.A.

	 
	 	By:

Vice PresidentPercentage: 100%

450 Mamaroneck Avenue

Harrison, NY 10528

Attention: Global Securitization

Facsimile No. (914) 899-7890

3

Schedule III-A

Approved OECD Countries

	10.	 	United Kingdom

	11.	 	Germany

	12.	 	Netherlands

	13.	 	Ireland

	14.	 	Belgium

	15.	 	France

	16.	 	Italy

	17.	 	Australia

	18.	 	Japan

	19.	 	Austria

	20.	 	Switzerland

	21.	 	Sweden

	22.	 	Spain

	23.	 	New Zealand

	24.	 	Norway

	25.	 	Denmark

Schedule III-B

Other Approved Jurisdictions

	26.	 	South Korea

	27.	 	Mexico

	28.	 	Hungary

	29.	 	Czech Republic

	30.	 	Taiwan

	31.	 	Israel

	32.	 	Hong Kong

	33.	 	Singapore

	34.	 	Malaysia

	35.	 	Slovenia

4

1.SCHEDULE IV

Seller UCC Information

	 	 	 
	Name:

	 	Ferro Finance Corporation
	 
	 	 
	Address:

	 	1000 Lakeside Avenue, Suite A

Cleveland, OH 44114
	 
	 	 
	Jurisdiction of Organization:

	 	Ohio
	 
	 	 
	UCC Filing Office:

	 	Ohio Secretary of State

5

ANNEX G

FORM OF COLLATERAL ADVANCE ACCOUNT AGREEMENT

[See attached.]

6

Conformed Copy

Incorporating Amendments

Through June 30, 2005

PURCHASE AND CONTRIBUTION AGREEMENT

Dated as of September 28, 2000

Between

FERRO CORPORATION

and

FERRO ELECTRONIC MATERIALS , INC.

as Sellers

and

FERRO FINANCE CORPORATION

as Purchaser

7

TABLE OF CONTENTS

Page

	 	 	 	 	 	 	 	 	 	 	 	 	 
	pRELIMINARY PRELIMINARY STATEMENTS
	 	 	1	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE I
	 	DEFINITIONS
	 	 	1	 	 	 	 	 
	 
	 	SECTION 1.01.Certain Defined Terms
	 	 	1	 	 	 	 	 
	 
	 	SECTION 1.02.Other Terms
	 	 	1311	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	ARTICLE II
	 	AMOUNTS AND TERMS OF PURCHASES AND CONTRIBUTIONS 13 ANDCONTRIBUTIONS
	 	 	 	 	 	 	12	 
	 	 	 
	 	 	 	 
	 
	 	SECTION 2.01.Facility
	 	 	1312	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	SECTION 2.02.Making Purchases
	 	 	1312	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	SECTION 2.03.Collections.
	 	 	1413	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	SECTION 2.04.Settlement Procedures
	 	 	1514	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	SECTION 2.05.Payments and Computations, Etc 16.
	 	 	15	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	SECTION 2.06.Contributions
	 	 	1715	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	ARTICLE III
	 	CONDITIONS OF PURCHASES
	 	 	1716	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 

	 	 	 	SECTION 3.01. Conditions Precedent to Initial Purchase from the Sellers 17
16

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	SECTION 3.02.	 	Conditions Precedent to All Purchases	 	1817
	ARTICLE IV	 	REPRESENTATIONS AND WARRANTIES	 	2018
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	SECTION 4.01.
	 	Representations and Warranties of the Sellers
	 	 	2018	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	ARTICLE V
	 	COVENANTS
	 	 	 	 	 	 	2322	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	SECTION 5.01.
	 	Covenants of the Sellers
	 	 	2322	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	SECTION 5.02.
	 	Grant of Security Interest
	 	 	2826	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	SECTION 5.03.
	 	Covenant of each Seller andthe and the Purchaser
	 	 	2826	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	ARTICLE VI	 	ADMINISTRATION AND COLLECTION
	 	 	2927	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	SECTION 6.01.
	 	Designation of Collection Agent 29 CollectionAgent27
	 	 	 	 
	 	 	 	 	 	 	 

	 
	 	SECTION 6.02.
	 	Duties of Collection Agent
	 	 	2928	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	SECTION 6.03.
	 	Collection Agent Fee
	 	 	3129	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	SECTION 6.04.
	 	Certain Rights of the Purchaser 31 thePurchaser
	 	 	29	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	SECTION 6.05.
	 	Rights and Remedies
	 	 	.3230	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	SECTION 6.06.
	 	Transfer of Records to Purchaser. 33 toPurchaser.
	 	 	31	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	ARTICLE VII
	 	EVENTS OF TERMINATION
	 	 	 	 	 	 	3432	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	SECTION 7.01.
	 	Events of Termination
	 	 	3432	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	ARTICLE VIII
	 	INDEMNIFICATION
	 	 	 	 	 	 	3735	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	SECTION 8.01.
	 	Indemnities by the Sellers
	 	 	3735	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	ARTICLE IX
	 	MISCELLANEOUS
	 	 	 	 	 	 	3937	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	SECTION 9.01.
	 	Amendments, Etc 39.
	 	 	37	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	SECTION 9.02.
	 	Notices, Etc 40.
	 	 	37	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	SECTION 9.03.
	 	Binding Effect; Assignability
	 	 	4038	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	SECTION 9.04.
	 	Costs, Expenses and Taxes
	 	 	4138	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	SECTION 9.05.
	 	No Proceedings
	 	 	4139	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	SECTION 9.06.
	 	Confidentiality
	 	 	4139	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	SECTION 9.07.
	 	GOVERNING LAW
	 	 	4239	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	SECTION 9.08.
	 	Third Party Beneficiary
	 	 	4239	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	SECTION 9.09.
	 	Execution in Counterparts
	 	 	4240	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 

EXHIBITS

	 	 	 
	EXHIBIT A

EXHIBIT B

EXHIBIT C

EXHIBIT D

EXHIBIT E-1

EXHIBIT E-2

EXHIBIT F

	 	Credit and Collection Policy

Lock-Box Banks

Form of Promissory Note for Deferred Purchase Price

Form of Promissory Note for Purchaser Loans

Approved OECD Countries

Other Approved Jurisdictions

Seller UCC Information
	 

	 	 
	EXHIBIT G

	 	Form of Ferro Electronic Order and Acknowledgment
	 

	 	 

8

PURCHASE AND CONTRIBUTION AGREEMENT

Dated as of September 28, 2000

FERRO CORPORATION, an Ohio corporation (“Ferro Corporation”), and FERRO ELECTRONIC
MATERIALS , INC., a Delaware corporation (“Ferro Electronic”) (Ferro Corporation and Ferro
Electronic being hereinafter sometimes referred to as the “Sellers”), and FERRO FINANCE
CORPORATION, an Ohio corporation (the “Purchaser”), agree as follows:

PRELIMINARY STATEMENTS. (1) Certain terms which are capitalized and used throughout this
Agreement (in addition to those defined above) are defined in Article I of this Agreement.

(2) The Sellers have Receivables that they wish to sell to the Purchaser, and the Purchaser is
prepared to purchase such Receivables on the terms set forth herein.

(3) The Sellers may also wish to contribute Receivables to the capital of the Purchaser on the
terms set forth herein.

NOW, THEREFORE, the parties agree as follows:

ARTICLE I

DEFINITIONS

SECTION 1.01. Certain Defined Terms. As used in this Agreement, the following terms
shall have the following meanings (such meanings to be equally applicable to both the singular and
plural forms of the terms defined):

“2005 Downgrade Event” means the BB Downgrade Event which occurred on June 2, 2005,
as a result of the downgrade to BB by S&P of Ferro Corporation’s long term public senior
unsecured non-credit-enhanced debt securities.

“2006 Downgrade Events” means (i) the BB Downgrade Event which occurred on
March 20, 2006, as a result of Moody’s downgrading the long term public senior unsecured
non-credit-enhanced debt securities of Ferro Corporation to B1 and then withdrawing its
rating on such debt securities, and (ii) the further downgrading by S&P on March 31, 2006 of
the long term public senior unsecured non-credit-enhanced debt securities of Ferro
Corporation to B.

“Adverse Claim” means a lien, security interest, or other charge or
encumbrance, or any other type of preferential arrangement.

“Affiliate” means, as to any Person, any other Person that, directly or
indirectly, is in control of, is controlled by or is under common control with such Person
or is a director or officer of such Person.

“Agent” means Citicorp North America, Inc., in its capacity as agent under the
Sale Agreement or any successor agent thereunder.

“Alternate Base Rate” means a fluctuating interest rate per annum as shall be
in effect from time to time, which rate shall be at all times equal to the highest of:

(a) the rate of interest announced publicly by Citibank, N.A. in New York, New
York, from time to time as Citibank, N.A.’s N.A.’s base rate;

(b) 1/2 of one percent above the latest three-week moving average of secondary
market morning offering rates in the United States for three-month certificates of
deposit of major United States money market banks, such three-week moving average
being determined weekly on each Monday (or, if such day is not a Business Day, on
the next succeeding Business Day) for the three-week period ending on the previous
Friday by Citibank, N.A. on the basis of such rates reported by certificate of
deposit dealers to and published by the Federal Reserve Bank of New York or, if such
publication shall be suspended or terminated, on the basis of quotations for such
rates received by Citibank, N.A. from three New York certificate of deposit dealers
of recognized standing selected by Citibank, N.A., in either case adjusted to the
nearest 1/4 of one percent or, if there is no nearest 1/4 of one percent, to the
next higher 1/4 of one percent; or

(c) the Federal Funds Rate.

“APC Receivable” means any receivable created or originated by the Advance
Polymer Compounding Division of Ferro Corporation.

“Approved OECD Country” means each of the countries listed on Exhibit E-1
hereto, as such Exhibit may be amended from time to time upon request of Ferro Corporation,
with the prior written approval of the Purchaser and the Agent. Additionally, if the Agent
removes any country from the Schedule of Approved OECD Countries attached to the Sale
Agreement, such country will cease to be an Approved OECD Country hereunder and the
Purchaser will immediately notify Ferro Corporation thereof.

“BB Downgrade Event” means any of the long term public senior unsecured
non-credit-enhanced debt securities of Ferro Corporation are rated below BB+ by S&P or Ba1
by Moody’s, or if Ferro Corporation does not have long term public senior unsecured
non-credit-enhanced debt ratings from both S&P and Moody’s, Ferro Corporation is judged by
the Agent, in its sole discretion, to be of credit quality below (with respect to each
missing rating) BB+ by S&P or Ba1 by Moody’s.

“Business Day” means any day on which banks are not authorized or required to
close in New York, New York or Cleveland, Ohio.

“Collection Agent” means at any time the Person then authorized pursuant to
Section 6.01 to service, administer and collect Transferred Receivables.

“Collection Agent Fee” has the meaning specified in Section 6.03.

“Collections” means, with respect to any Receivable, all cash collections and
other cash proceeds of such Receivable, including, without limitation, all cash proceeds of
Related Security with respect to such Receivable, and all funds deemed to have been
received by the Seller or any other Person as a Collection pursuant to Section 2.04.

“Contract” means an agreement between a Seller and an Obligor, substantially in
the form of one of the written contracts or (in the case of any open account agreement) one
of the invoices approved by the Purchaser, pursuant to or under which such Obligor shall be
obligated to pay for merchandise, insurance or services from time to time.

“Contributed Receivable” has the meaning specified in Section 2.06.

“Credit and Collection Policy” means those receivables credit and collection
policies and practices of each Seller in effect on the date of this Agreement applicable to
the Receivables and described in Exhibit A hereto, as modified in compliance with this
Agreement.

“Daily Report” means a report in form and substance satisfactory to the
Purchaser, furnished by the Collection Agent to the Purchaser pursuant to the third sentence
of Section 6.02(b).

“Debt” means (i) indebtedness for borrowed money, (ii) obligations evidenced by
bonds, debentures, notes or other similar instruments, (iii) obligations to pay the deferred
purchase price of property or services, (iv) obligations as lessee under leases which shall
have been or should be, in accordance with generally accepted accounting principles,
recorded as capital leases, and (v) obligations under direct or indirect guaranties in
respect of, and obligations (contingent or otherwise) to purchase or otherwise acquire, or
otherwise to assure a creditor against loss in respect of, indebtedness or obligations of
others of the kinds referred to in clauses (i) through (iv) above.

“Defaulted Receivable” means a Receivable:

(i) as to which any payment, or part thereof, remains unpaid for 90 days or
more from the original due date for such payment;

(ii) as to which the Obligor thereof or any other Person obligated thereon or
owning any Related Security in respect thereof has taken any action, or suffered any
event to occur, of the type described in Section 7.01(g); or

(iii) which, consistent with the Credit and Collection Policy, would be written
off as uncollectible.

“Deferred Purchase Price” means the portion of the Purchase Price of Purchased
Receivables purchased on any Purchase Date exceeding the amount of the Purchase Price under
Section 2.02 to be paid in cash, which portion when added to the cumulative amount of all
previous Deferred Purchase Prices (after giving effect to any payments made on account
thereof) shall not exceed 32.0% of the Outstanding Balance of the Transferred Receivables.
The obligations of the Purchaser in respect of the Deferred Purchase Price shall be
evidenced by the Purchaser’s Purchaser’s subordinated promissory note in the form of
Exhibit C hereto.

“Designated Obligor” means, at any time, each Obligor; provided,
however, that any Obligor shall cease to be a Designated Obligor upon three Business
Days’ Days’ notice by the Purchaser to the relevant Seller.

“Dilution” means, with respect to any Receivable, the aggregate amount of any
reductions or adjustments in the Outstanding Balance of such Receivable as a result of any
defective, rejected, returned, repossessed or foreclosed merchandise or services or any cash
discount, discount for quick payment or other adjustment or setoff.

“Discount” means, in respect of each Purchase, 2.5% of the Outstanding Balance
of the Receivables that are the subject of such Purchase; provided, however, the foregoing
Discount may be revised prospectively by request of the relevant Seller or the Purchaser to
reflect changes in recent experience with respect to write-offs, timing and cost of
Collections and cost of funds, provided that such revision is consented to by both of such
parties (it being understood that each party agrees to duly consider such request but shall
have no obligation to give such consent).

“Eligible Receivable” means a Receivable:

(i) the Obligor of which is a resident of the United States (including, without
limitation, Puerto Rico), Canada, an Approved OECD Country or an Other Approved
Jurisdiction, provided that (A) the aggregate Outstanding Balance of all
Eligible Receivables having Obligors which are residents of an Approved OECD Country
or an Other Approved Jurisdiction may not exceed 20% of the then outstanding Capital
under the Sale Agreement, (B) the aggregate Outstanding Balance of all Eligible
Receivables having Obligors which are residents of an Other Approved Jurisdiction
may not exceed 10% of the then outstanding Capital under the Sale Agreement and
(C) with respect to each country which is an Other Approved Jurisdiction, the
aggregate Outstanding Balance of all Eligible Receivables having Obligors which are
residents of such country may not exceed (1) 5% of the then outstanding Capital
under the Sale Agreement, at any time that the sovereign long-term debt rating of
such country is at least A by S&P and at least A2 by Moody’s, and (2) 3.3% of the
then outstanding Capital under the Sale Agreement, at any time that the sovereign
long-term debt rating of such country is not at least A by S&P and at least A2 by
Moody’s;

(ii) the Obligor of which is not an Affiliate of any of the parties hereto and
is not a government or a governmental subdivision or agency;

(iii) the Obligor of which, at the time of the transfer of such Receivable
under this Agreement, is a Designated Obligor and is not the Obligor of any
Defaulted Receivables which in the aggregate constitute 10% or more of the aggregate
Outstanding Balance of all Receivables of such Obligor;

(iv) which, at the time of the transfer thereof to the Purchaser under this
Agreement, is not a Defaulted Receivable;

(v) which, according to the Contract related thereto, is required to be paid in
full either (A) within not more than 30 days of the original billing date
therefor or (B) within more than 30 but no more than 90 days of the original billing
date therefor if the aggregate Outstanding Balance of such Receivable and all other
Receivables having similar payments terms does not exceed 25% of the then
outstanding Capital under the Sale Agreement; Outstanding Balance of all
Transferred Receivables at such time;

(vi) which is an obligation representing all or part of the sales price of
merchandise, insurance or services within the meaning of Section 3(c)(5) of the
Investment Company Act of 1940, as amended, and the nature of which is such that its
purchase with the proceeds of notes would constitute a “current transaction” within
the meaning of Section 3(a)(3) of the Securities Act of 1933, as amended;

(vii) which is an “account” within the meaning of Article 9 of the UCC of the
applicable jurisdictions;

(viii) which is denominated and payable only in United States dollars in the
United States;

(ix) which arises under a Contract which, together with such Receivable, is in
full force and effect and constitutes the legal, valid and binding obligation of the
Obligor of such Receivable and is not subject to any Adverse Claim or any
dispute, offset, counterclaim or defense whatsoever (except the potential discharge
in bankruptcy of such Obligor);

(x) which, together with the Contract related thereto, does not contravene in
any material respect any laws, rules or regulations applicable thereto (including,
without limitation, laws, rules and regulations relating to usury, consumer
protection, truth in lending, fair credit billing, fair credit reporting, equal
credit opportunity, fair debt collection practices and privacy) and with respect to
which no party to the Contract related thereto is in violation of any such law, rule
or regulation in any material respect;

(xi) which arises under a Contract which (A) does not require the Obligor under
such Contract to consent to the transfer, sale or assignment of the rights and
duties of the relevant Seller under such Contract and (B) does not contain a
confidentiality provision that purports to restrict the ability of the Purchaser and
its assignees to exercise their rights under this Agreement, including, without
limitation, their right to review the Contract;

(xii) which was generated in the ordinary course of the relevant Seller’s
business;

(xiii) which, at the time of the transfer of such Receivable under this
Agreement, has not been extended, rewritten or otherwise modified from the original
terms thereof;

(xiv) the transfer, sale or assignment of which does not contravene any
applicable law, rule or regulation; and

(xv) which (A) satisfies all applicable requirements of the Credit and
Collection Policy and (B) complies with such other criteria and requirements (other
than those relating to the collectibility of such Receivable) as the Purchaser or
its designee may from time to time specify to the Sellers upon 30 days’
days’ notice.

“ERISA” means the Employee Retirement Income Security Act of 1974, as amended
from time to time, and the regulations promulgated and rulings issued thereunder.

“Event of Termination” has the meaning specified in Section 7.01.

“Facility” means the willingness of the Purchaser to consider making Purchases
of Receivables from the Seller from time to time pursuant to the terms of this Agreement.

“Facility Termination Date” means the earliest of (i) the “Facility Termination
Date” (as such term is defined in the Sale Agreement), (ii) the date of termination of the
Facility pursuant to Section 7.01 and (iii) the date which the Sellers designate by at least
two Business Days’ Days’ notice to the Purchaser.

“Federal Funds Rate” means, for any period, a fluctuating interest rate per
annum equal for each day during such period to the weighted average of the rates on
overnight Federal funds transactions with members of the Federal Reserve System arranged by
Federal funds brokers, as published for such day (or, if such day is not a Business Day, for
the next preceding Business Day) by the Federal Reserve Bank of New York, or, if such rate
is not so published for any day which is a Business Day, the average of the quotations for
such day on such transactions received by Citibank, N.A. from three Federal funds brokers of
recognized standing selected by it.

“General Trial Balance” of either Seller on any date means such Seller’s
Seller’s accounts receivable trial balance (whether in the form of a computer
printout, magnetic tape or diskette) on such date, listing Obligors and the Receivables
respectively owed by such Obligors on such date together with the aged Outstanding Balances
of such Receivables, in form and substance satisfactory to the Purchaser.

“Incipient Event of Termination” means an event that but for notice or lapse of
time or both would constitute an Event of Termination.

“Indemnified Amounts” has the meaning specified in Section 8.01.

“Lock-Box Account” means one or more accounts, under the exclusive ownership
and control of the Purchaser (or its assignees or designees), maintained for the purpose of
receiving Collections.

“Lock-Box Agreement” means an agreement among a Seller, the Purchaser (or its
assignees or designees) and any Lock-Box Bank in form and substance satisfactory to the
Purchaser (or its assignees or designees).

“Lock-Box Bank” means any of the banks or other financial institutions holding
one or more Lock-Box Accounts.

“Monthly Report” means a report in form and substance satisfactory to the
Purchaser, furnished by the Collection Agent to the Purchaser pursuant to the first sentence
of Section 6.02(b).

“Moody’s” means Moody’s Investors Service, Inc.

“Non-Investment Grade Event” means any of the long term public senior unsecured
non-credit-enhanced debt securities of Ferro Corporation are rated below BBB- by S&P or Baa3
by Moody’s, or if Ferro Corporation does not have long term public senior unsecured
non-credit-enhanced debt ratings from both S&P and Moody’s, Ferro Corporation is judged by
the Agent, in its sole discretion, to be of credit quality below (with respect to each
missing rating) BBB- by S&P or Baa3 by Moody’s.

“Obligor” means a Person obligated to make payments to a Seller pursuant to a
Contract.

“Other Approved Jurisdiction” means each of the countries listed on Exhibit E-2
hereto, as such Exhibit may be amended from time to time upon request of Ferro Corporation,
with prior written approval of the Purchaser and the Agent; provided,
however, that at any time that the sovereign long-term debt rating of any country
listed on such Exhibit falls below A- by S&P or below A3 by Moody’s, such country will cease
to be an Other Approved Jurisdiction. Additionally, if the Agent at any time removes any
country from the Schedule of Other Approved Jurisdictions attached to the Sale Agreement,
such country will cease to be an Other Approved Jurisdiction hereunder and the Purchaser
will immediately notify Ferro Corporation thereof.

“Outstanding Balance” of any Receivable at any time means the then outstanding
principal balance thereof.

“Person” means an individual, partnership, corporation (including a business
trust), limited liability company, joint stock company, trust, unincorporated association,
joint venture or other entity, or a government or any political subdivision or agency
thereof.

“Petroleum Additive Business” means the petroleum additive business of Ferro Corporation located in
Hammond, Indiana and the invoices generated thereby which are identified by a seven-digit invoice
number beginning with the number 65.

“Powder Coating Division” means the powder coating manufacturing facilities of Ferro Corporation
located in Nashville, Tennessee and Brecksville, Ohio.

“Purchase” means a purchase by the Purchaser of Receivables from the Seller
pursuant to Article II.

“Purchase Date” means each day on which a Purchase is made pursuant to Article
II.

“Purchased Receivable” means any Receivable which is purchased by the Purchaser
pursuant to Section 2.02.

“Purchase Price” for any Purchase means an amount equal to the Outstanding
Balance of the Receivables that are the subject of such Purchase as set forth in the
relevant Seller’s General Trial Balance, minus the Discount for such Purchase.

“Purchaser Loan” means any loan made by the Purchaser, at its option, to a
Seller, upon such Seller’s request, provided that (a) the aggregate principal amount at any
one time outstanding of Purchaser Loans shall not exceed $5,000,000, and (b) no such
Purchaser Loans may be made if an Event of Termination or an Incipient Event of Termination
has occurred and is continuing, or would occur after giving effect thereto, or if any
amounts are outstanding under the Deferred Purchase Price. Purchaser Loans made by the
Purchaser hereunder shall be evidenced by a promissory note of each Seller in substantially
the form of Exhibit D hereto.

“Receivable” means the indebtedness of any Obligor under a Contract
(whether constituting an account, instrument, chattel paper or general intangible),
and includes the right to payment of any interest or finance charges and other obligations
of such Obligor with respect thereto; provided, however, that “Receivable”
shall not include any APC Receivable until such time as (i) Ferro Corporation has requested,
and the Purchaser and the Agent have approved in writing, the inclusion of the APC
Receivables in the Facility and (ii) Ferro Corporation has directed all Obligors of APC
Receivables to make payments thereon to a Lock-Box or Lock-Box Account specified on Exhibit
B as to which a Lock-Box Agreement is in effect and; provided, further, that from and after
September 25, 2002, “Receivable” shall not include any such indebtedness generated by the
Powder Coating Division and; provided, further, that from and after May 28, 2003,
“Receivable” shall not include any such indebtedness generated by the Speciality Ceramics
Business and; provided, further, that from and after June 27, 2003, “Receivable” shall not
include any such indebtedness generated by the Petroleum Additive Business.

“Related Security” means with respect to any Receivable:

(i) all of the relevant Seller’s Seller’s interest in any merchandise
(including returned merchandise) relating to any sale giving rise to such
Receivable;

(ii) all security interests or liens and property subject thereto from time to
time purporting to secure payment of such Receivable, whether pursuant to the
Contract related to such Receivable or otherwise, together with all financing
statements signed by filed against an Obligor describing any collateral
securing such Receivable;

(iii) all guaranties, insurance and other agreements or arrangements of
whatever character from time to time supporting or securing payment of such
Receivable whether pursuant to the Contract related to such Receivable or otherwise;
and

(iv) the Contract and all other books, records and other information
(including, without limitation, computer programs, tapes, discs, punch cards, data
processing software and related property and rights) relating to such Receivable and
the related Obligor.

“S&P” means Standard & Poor’s Poor’s Rating Services, a division of
McGraw-Hill Companies, Inc.

“Sale Agreement” means that certain Receivables Purchase Agreement, dated as of
the date hereof September 28, 2000, among the Purchaser, as seller, CIESCO L.P., as
purchaser, Citicorp North America, Inc., as agent, Ferro Electronic, as an originator, and
Ferro Corporation, as collection agent and an originator, as amended or restated from time
to time, including by that certain Amended and Restated Receivables Purchase Agreement
dated as of June 29, 2006, which, inter alia, adds Citibank, N.A. as a party to such Sale
Agreement.

“Seller Report” means a Monthly Report, a Weekly Report or a Daily Report.

“Settlement Date” means the tenth day of each month (or if such day is not a
Business Day, the immediately succeeding Business Day); provided, however,
that following the occurrence of an Event of Termination, Settlement Dates shall occur on
such days as are selected from time to time by the Purchaser or its designee in a written
notice to the Collection Agent.

“Specialty Ceramics Business” means the speciality ceramics business of Ferro
Corporation located in (a) Crooksville, Ohio and the invoices generated thereby which are
identified by a seven-digit invoice number beginning with the number 22, and (b) Shreve,
Ohio and the invoices generated thereby which are identified by a seven-digit invoice number
beginning with the number 59.“Tangible Net Worth” means at any time the excess of (i)
the sum of (a) the product of (x) 100% minus the Discount multiplied by (y) the Outstanding
Balance of all Transferred Receivables other than Defaulted Receivables plus (b) cash and
cash equivalents of the Purchaser plus (c) the outstanding principal amount of Purchaser
Loans, minus (ii) the sum of (a) Capital (as such term is defined in the Sale Agreement)
plus (b) the Deferred Purchase Price.

“Transferred Receivable” means a Purchased Receivable or a Contributed
Receivable.

“UCC” means the Uniform Commercial Code as from time to time in effect in the
specified jurisdiction.

“Undertaking Agreement” means the Undertaking Agreement dated as of the date of
this Agreement made by Ferro Corporation in favor of the Purchaser, relating to the
Obligations of Ferro Electronic hereunder, as the same may be amended, modified or restated
from time to time.

“Week” means each calendar week beginning on Saturday and ending on (and
including) the following Friday.

“Weekly Report” means a report in form and substance satisfactory to
the Purchaser, furnished by the Collection Agent to the Purchaser pursuant to the
second sentence of Section 6.02(b).

SECTION 1.02. Other Terms. All accounting terms not specifically defined herein
shall be construed in accordance with generally accepted accounting principles. All terms used in
Article 9 of the UCC in the State of New York, and not specifically defined herein, are used herein
as defined in such Article 9.

ARTICLE II

AMOUNTS AND TERMS OF PURCHASES AND CONTRIBUTIONS

SECTION 2.01. Facility. On the terms and conditions hereinafter set forth and
without recourse to either Seller (except to the extent specifically provided herein), each Seller
may at its option sell or contribute to the Purchaser all Receivables originated by it from time to
time and the Purchaser may at its option purchase or accept as a contribution from Ferro
Corporation all Receivables of such Seller from time to time, in each case during the period from
the date hereof to the Facility Termination Date.

SECTION 2.02. Making Purchases.

(a) Initial Purchase. Each Seller shall give the Purchaser at least one Business
Day’s notice of its request for the initial Purchase hereunder, which request shall specify the
date of such Purchase (which shall be a Business Day) and the proposed Purchase Price for such
Purchase. The Purchaser shall promptly notify such Seller whether it has determined to make such
Purchase. On the date of such Purchase, the Purchaser shall, upon satisfaction of the applicable
conditions set forth in Article III, pay the Purchase Price for such Purchase in the manner
provided in Section 2.02(c).

(b) Subsequent Purchases. On each Business Day following the initial Purchase, unless
either Seller or the Purchaser shall notify the other parties to the contrary, each Seller shall
sell to the Purchaser and the Purchaser shall purchase from such Seller, upon satisfaction of the
applicable conditions set forth in Article III, all Receivables originated by such Seller which
have not previously been sold or contributed to the Purchaser; provided, however,
that such Seller may, at its option on any Purchase Date, contribute all or any of such Receivables
to the Purchaser pursuant to Section 2.06, instead of selling such Receivables to the Purchaser
pursuant to this Section 2.02(b). On or within five Business Days after the date of each such
Purchase, the Purchaser shall pay the Purchase Price for such Purchase in the manner provided in
Section 2.02(c).

(c) Payment of Purchase Price. The Purchase Price for each Purchase shall be paid on
or within five Business Days after the Purchase Date therefor by means of any one or a combination
of the following: (i) a deposit in same day funds to the relevant Seller’s account designated by
such Seller, (ii) an increase in the Deferred Purchase Price (subject at all times to the
limitations contained in the definition thereof), or (iii) a credit against interest and/or
principal owed by the relevant Seller with respect to any Purchaser Loan. The allocation of the
Purchase Price as among such methods of payment shall be subject in each instance to the approval
of the Purchaser and the relevant Seller; provided, however, that the Deferred Purchase Price
may not be increased to the extent that, after giving effect to such increase, the Tangible Net
Worth would be less than 10.0% of the Outstanding Balance of the Transferred Receivables.

(d) Ownership of Receivables and Related Security. On each Purchase Date, after
giving effect to the Purchase (and any contribution of Receivables) on such date, the Purchaser
shall own all Receivables originated by the Sellers as of such date (including Receivables which
have been previously sold or contributed to the Purchaser hereunder). The Purchase or contribution
of any Receivable shall include all Related Security with respect to such Receivable.

(e) Assignment of Receivables relating to Obligors located in Germany. In addition to
the transfer of ownership of Receivables stipulated above each Seller, subject to the satisfaction
of the conditions precedent set out in this Agreement hereby assigns by way of a German law
assignment (Abtretung) within the meaning of Section 398 German Civil Code (B_rgerliches
Gesetzbuch) to the Purchaser all Receivables (whether now existing or hereafter arising) owed to
the Sellers by an Obligor located in Germany (the “German Obligor Receivables”). The
Purchaser accepts such assignment. The assignment of the German Obligor Receivables shall include
all ancillary rights, priority rights as well as all other rights attached to the German Obligor
Receivables.

SECTION 2.03. Collections. (a)  Unless otherwise agreed, the Collection Agent shall,
on each Settlement Date, deposit into an account of the Purchaser or the Purchaser’s assignee all
Collections of Transferred Receivables then held by the Collection Agent.

(b) In the event that either Seller believes that Collections which are not Collections of
Transferred Receivables have been deposited into an account of the Purchaser or the Purchaser’s
assignee, such Seller shall so advise the Purchaser and, on the Business Day following such
identification, the Purchaser shall remit, or shall cause to be remitted, all Collections so
deposited which are identified, to the Purchaser’s Purchaser’s satisfaction, to be
Collections of Receivables which are not Transferred Receivables to such Seller.

(c) On each Settlement Date, the Purchaser shall pay to the Sellers accrued interest on the
Deferred Purchase Price and the Purchaser may, at its option, prepay in whole or in part the
principal amount of the Deferred Purchase Price; provided that each such payment shall be made
solely from (i) Collections of Transferred Receivables after all other amounts then due from the
Purchaser under the Sale Agreement have been paid in full and all amounts then required to be set
aside by the Purchaser or the Collection Agent under the Sale Agreement have been so set aside or
(ii) excess cash flow from operations of the Purchaser which is not required to be applied to the
payment of other obligations of the Purchaser; and provided further, that no such payment shall be
made at any time when an Event of Termination shall have occurred and be continuing. At such time
following the Facility Termination Date when all Capital, Yield and other amounts owed by the
Purchaser under the Sale Agreement shall have been paid in full, the Purchaser shall apply, on each
Settlement Date, all Collections of Transferred Receivables received by the Purchaser pursuant to
Section 2.03(a) (and not previously distributed) first to the payment of accrued interest on the
Deferred Purchase Price, and then to the reduction of the principal amount of the Deferred Purchase
Price.

SECTION 2.04. Settlement Procedures. (a)  If on any day the Outstanding Balance of
any Transferred Receivable is reduced or adjusted as a result of any defective, rejected, returned,
repossessed or foreclosed merchandise or services or any cash discount, discount for quick payment
or other adjustment made by the relevant Seller, or any set-off or dispute in respect of any claim
by the Obligor thereof against such Seller (whether such claim arises out of the same or a related
transaction or an unrelated transaction but excluding adjustments, reductions or
cancellations in respect of such Obligor’s Obligor’s bankruptcy), such Seller shall be
deemed to have received on such day a Collection of such Transferred Receivable in the amount of
such reduction or adjustment. If such Seller is not the Collection Agent, such Seller shall pay to
the Collection Agent on or prior to the next Settlement Date all amounts deemed to have been
received pursuant to this subsection.

(b) Upon discovery by either Seller or the Purchaser of a breach of any of the representations
and warranties made by a Seller in Section 4.01(j) with respect to any Transferred Receivable, such
party shall give prompt written notice thereof to the other party, as soon as practicable and in
any event within three Business Days following such discovery. Such Seller shall, upon not less
than two Business Days’ notice from the Purchaser or its assignee or designee, repurchase such
Transferred Receivable on the next succeeding Settlement Date for a repurchase price equal to the
Outstanding Balance of such Transferred Receivable. Each repurchase of a Transferred Receivable
shall include the Related Security with respect to such Transferred Receivable. The proceeds of
any such repurchase shall be deemed to be a Collection in respect of such Transferred Receivable.
If such Seller is not the Collection Agent, such Seller shall pay to the Collection Agent on or
prior to the next Settlement Date the repurchase price required to be paid pursuant to this
subsection.

(c) Except as stated in subsection (a) or (b) of this Section 2.04 or as otherwise required by
law or the underlying Contract, all Collections from an Obligor of any Transferred Receivable shall
be applied to the Receivables of such Obligor in the order of the age of such Receivables, starting
with the oldest such Receivable, unless such Obligor designates its payment for application to
specific Receivables.

SECTION 2.05. Payments and Computations, Etc. (a)  All amounts to be paid or
deposited by either Seller or the Collection Agent hereunder shall be paid or deposited no later
than 11:00 A.M. (New York City time) on the day when due in same day funds to an account or
accounts designated by the Purchaser from time to time, which accounts, during the existence of the
Sale Agreement, shall be those set forth in the Sale Agreement.

(b) Each Seller shall, to the extent permitted by law, pay to the Purchaser interest on any
amount not paid or deposited by such Seller (whether as Collection Agent or otherwise) when due
hereunder at an interest rate per annum equal to 2.0% per annum above the Alternate Base Rate,
payable on demand.

(c) All computations of interest and all computations of fees hereunder shall be made on the
basis of a year of 360 days for the actual number of days (including the first but excluding the
last day) elapsed. Whenever any payment or deposit to be made hereunder shall be due on a day
other than a Business Day, such payment or deposit shall be made on the next succeeding Business
Day and such extension of time shall be included in the computation of such payment or deposit.

SECTION 2.06. Contributions. Each Seller may from time to time at its option, by
notice to the Purchaser on or prior to the date of the proposed contribution, identify Receivables
which it proposes to contribute to the Purchaser as a capital contribution. On the date of each
such contribution and after giving effect thereto, the Purchaser shall own in fee simple the
Receivables so identified and contributed (collectively, the “Contributed Receivables”) and
all Related Security with respect thereto. The foregoing notwithstanding, on the date of the
initial Purchase hereunder each Seller agrees to contribute to the Purchaser all Receivables which
are not included in such initial Purchase.

9

ARTICLE III

CONDITIONS OF PURCHASES

SECTION 3.01. Conditions Precedent to Initial Purchase from the Sellers. The initial
Purchase of Receivables from the Sellers hereunder is subject to the conditions precedent that the
Purchaser shall have received on or before the date of such Purchase the following, each (unless
otherwise indicated) dated such date, in form and substance satisfactory to the Purchaser:

(a) Evidence that each Seller has taken any necessary corporate action to authorize
this Agreement and certified copies of all documents evidencing other necessary corporate
action and governmental approvals, if any, with respect to this Agreement.

(b) A certificate of the Secretary or Assistant            Secretary of each Seller certifying
the names and true signatures of the officers of such Seller authorized to sign this
Agreement and the other documents to be delivered by it hereunder.

(c) Acknowledgment copies or time stamped receipt copies of proper financing
statements, duly filed on or before the date of the initial Purchase, naming each Seller as
the seller/debtor and the Purchaser as the purchaser/secured party, or other similar
instruments or documents, as the Purchaser may deem necessary or desirable under the UCC of
all appropriate jurisdictions or other applicable law to perfect the Purchaser’s
Purchaser’s ownership of and security interest in the Transferred Receivables and
Related Security and Collections with respect thereto.

(d) Acknowledgment copies or time stamped receipt copies of proper financing
statements, if any, necessary to release all security interests and other rights of any
Person in the Transferred Receivables, Contracts or Related Security previously granted by
each Seller.

(e) Completed requests for information, dated on or before the date of such initial
Purchase, listing all effective financing statements filed in the jurisdictions referred to
in subsection (c) above that name either Seller as debtor, together with copies of such
other financing statements (none of which shall cover any Transferred Receivables, Contracts
or Related Security).

(f) A favorable opinion of Squire, Sanders & Dempsey L.L.P., counsel for the Sellers,
in form and substance satisfactory to the Purchaser, as to such matters as the Purchaser may
reasonably request.

(g) The Undertaking Agreement, duly executed by Ferro Corporation.

(h) Lock-Box Agreements in respect of each Lock-Box Account, duly executed by the
relevant Seller and the Lock-Box Bank holding such Lock-Box Account.

SECTION 3.02. Conditions Precedent to All Purchases. Each Purchase (including
the initial Purchase) hereunder shall be subject to the further conditions precedent that:

(a) with respect to any such Purchase, on or prior to the date of such Purchase, the
relevant Seller shall have delivered to the Purchaser, (i) if requested by the Purchaser,
such Seller’s General Trial Balance (which if in magnetic tape or diskette format shall be
compatible with the Purchaser’s computer equipment) as of a date not more than 31 days prior
to the date of such Purchase, and (ii) a written report identifying, among other things, the
Receivables to be included in such Purchase and such additional information concerning such
Receivables as may reasonably be requested by the Purchaser;

(b) with respect to any such Purchase, on or prior to the date of such Purchase, the
Collection Agent shall have delivered to the Purchaser, in form and substance satisfactory
to the Purchaser, a completed Monthly Report, Weekly Report or Daily Report for the most
recently ended reporting period for which information is required pursuant to Section
6.02(b), and containing such additional information as may reasonably be requested by the
Purchaser;

(c) The relevant Seller shall have marked its master data processing records and, at
the request of the Purchaser, each Contract giving rise to Purchased Receivables and all
other relevant records evidencing the Receivables which are the subject of such Purchase
with a legend, acceptable to the Purchaser, stating that such Receivables, the Related
Security and Collections with respect thereto, have been sold in accordance with this
Agreement; and

(d) on the date of such Purchase the following statements shall be true (and the
relevant Seller, by accepting the amount of such Purchase, shall be deemed to have certified
that):

(i) The representations and warranties contained in Section 4.01 are correct on
and as of the date of such Purchase as though made on and as of such date,

(ii) No event has occurred and is continuing, or would result from such
Purchase, that constitutes an Event of Termination or would constitute an Incipient
Event of Termination and

(iii) The Purchaser shall not have delivered to such Seller a notice that the
Purchaser shall not make any further Purchases hereunder; and

(e) the Purchaser shall have received such other approvals, opinions or documents as
the Purchaser may reasonably request.

ARTICLE IV

REPRESENTATIONS AND WARRANTIES

SECTION 4.01. Representations and Warranties of the Sellers. Each Seller represents
and warrants, as to itself, as follows:

(a) Such Seller is a corporation duly incorporated, validly existing and in good
standing, with respect to Ferro Corporation, under the laws of Ohio, and, with respect to
Ferro Electronic, under the laws of Delaware, in each case under the laws of the
applicable jurisdiction set forth in Exhibit F hereto (as such Exhibit F may be amended from
time to time pursuant to Section 5.01(b)) and is duly qualified to do business, and is
in good standing, in every jurisdiction where the nature of its business requires it to be
so qualified, unless the failure to so qualify would not have a material adverse effect on
(i) the interests of the Purchaser hereunder, (ii) the collectibility of the Transferred
Receivables, or (iii) the ability of the Seller or the Collection Agent to perform their
respective obligations hereunder.

(b) The execution, delivery and performance by such Seller of this Agreement and the
other documents to be delivered by it hereunder, including such Seller’s Seller’s
sale and contribution of Receivables hereunder and such Seller’s Seller’s use of the
proceeds of Purchases, (i) are within such Seller’s Seller’s corporate powers,
(ii) have been duly authorized by all necessary corporate action, (iii) do not contravene
(1) such Seller’s Seller’s charter or by-laws, (2) any law, rule or regulation
applicable to such Seller, (3) any contractual restriction binding on or affecting such
Seller or its property or (4) any order, writ, judgment, award, injunction or decree binding
on or affecting such Seller or its property, and (iv) do not result in or require the
creation of any lien, security interest or other charge or encumbrance upon or with respect
to any of its properties (except for the transfer of such Seller’s Seller’s interest
in the Transferred Receivables pursuant to this Agreement). This Agreement has been duly
executed and delivered by such Seller.

(c) No authorization or approval or other action by, and no notice to or filing with,
any governmental authority or regulatory body is required for the due execution, delivery
and performance by such Seller of this Agreement or any other document to be delivered by it
hereunder.

(d) This Agreement constitutes the legal, valid and binding obligation of such Seller
enforceable against such Seller in accordance with its terms.

(e) Sales and contributions made pursuant to this Agreement will constitute a valid
sale, transfer, and assignment of the Transferred Receivables to Purchaser, enforceable
against creditors of, and purchasers from, such Seller. Such Seller shall have no remaining
property interest in any Transferred Receivable.

(f) The balance sheets of Ferro Corporation and its subsidiaries as at December 31,
1999 2004, and the related statements of income and retained earnings of Ferro
Corporation and its subsidiaries for the fiscal year then ended, copies of which have been
furnished to the Purchaser, fairly present the financial condition of Ferro Corporation and
its subsidiaries as at such date and the results of the operations of Ferro Corporation and
its subsidiaries for the period ended on such date, all in accordance with generally
accepted accounting principles consistently applied, and since December 31, 1999
2004 there has been no material adverse change in the business, operations, property
or financial or other condition of Ferro Corporation.

(g) There is no pending or, to the Seller’s knowledge, threatened action,
investigation or proceeding affecting such Seller or any of its subsidiaries before any
court, governmental agency or arbitrator which may materially adversely affect the financial
condition or operations of such Seller or any of its subsidiaries or the ability of such
Seller to perform its obligations under this Agreement or any other document to be delivered
by it hereunder, or which purports to affect the legality, validity or enforceability of
this Agreement or any other document to be delivered by it hereunder.

(h) No proceeds of any Purchase will be used to acquire any equity security of a class
which is registered pursuant to Section 12 of the Securities Exchange Act of 1934.

(i) No transaction contemplated hereby requires compliance with any bulk sales act or
similar law.

(j) Each Receivable purported to be sold by such Seller hereunder is an Eligible
Receivable (unless identified by such Seller as not an Eligible Receivable at the time of
sale and in each applicable Seller Report), and each such Receivable and each Transferred
Receivable, together with the Related Security, is owned (prior to its sale or contribution
hereunder) by such Seller free and clear of any Adverse Claim (other than any Adverse Claim
arising solely as the result of any action taken by the Purchaser). When Purchaser makes a
Purchase it shall acquire valid and perfected first priority ownership of each Purchased
Receivable and the Related Security and Collections with respect thereto free and clear of
any Adverse Claim (other than any Adverse Claim arising solely as the result of any action
taken by the Purchaser), and no effective financing statement or other instrument similar in
effect covering any Transferred Receivable, any interest therein, the Related Security or
Collections with respect thereto is on file in any recording office except such as may be
filed in favor of Purchaser in accordance with this Agreement or in connection with any
Adverse Claim arising solely as the result of any action taken by the Purchaser.

(k) Each Seller Report (if prepared by the relevant Seller, or to the extent that
information contained therein is supplied by such Seller), information, exhibit, financial
statement, document, book, record or report furnished or to be furnished at any time by such
Seller to the Purchaser in connection with this Agreement is or will be accurate in all
material respects as of its date or (except as otherwise disclosed to the Purchaser at such
time) as of the date so furnished, and no such document contains or will contain any untrue
statement of a material fact or omits or will omit to state a material fact necessary in
order to make the statements contained therein, in the light of the circumstances under
which they were made, not misleading.

(l) The principal place of business and chief executive office of the such
Seller and the office where such Seller keeps its records concerning the Transferred
Receivables are located at the address or addresses referred to in Section 5.01(b).
Such Seller is located in the jurisdiction of organization set forth in Exhibit F hereto
for purposes of Section 9-307 of the UCC as in effect in the State of New York; and the
office in the jurisdiction of organization of such Seller in which a UCC financing statement
is required to be filed in order to perfect the security interest granted by such Seller
hereunder is set forth in Exhibit F hereto (in each case as such Exhibit F may be amended
from time to time pursuant to Section 5.01(b)).

(m) The names and addresses of all the Lock-Box Banks, together with the account
numbers of the Lock-Box Accounts at such Lock-Box Banks, are specified in Exhibit B (as the
same may be updated from time to time pursuant to Section 5.01(h)).

(n) Such Seller is not known by and does not use any tradename or doing-business-as
name.

(o) With respect to any programs used by such Seller in the servicing of the
Receivables, no sublicensing agreements are necessary in connection with the designation of
a new Collection Agent pursuant to Section 6.01(b) so that such new Collection Agent shall
have the benefit of such programs (it being understood that,
however, the Collection Agent, if other than Ferro Corporation, shall be required to be
bound by a confidentiality agreement reasonably acceptable to such Seller).

(p) The transfers of Transferred Receivables by such Seller to the Purchaser pursuant
to this Agreement, and all other transactions between such Seller and the Purchaser, have
been and will be made in good faith and without intent to hinder, delay or defraud creditors
of such Seller.

(q) Such Seller has no office or place of business in the province of Quebec, Canada.

(r) Such Seller does not have, and since September 28, 2000 has not had, a place of
business in either the United Kingdom or Ireland.

(s) Such Seller has (i) timely filed all federal tax returns required to be
filed, (ii) timely filed all other material state and local tax returns and (iii) paid or
made adequate provision for the payment of all taxes, assessments and other governmental
charges (other than any tax, assessment or governmental charge which is being contested in
good faith and by proper proceedings, and with respect to which the obligation to pay such
amount is adequately reserved against in accordance with generally accepted accounting
principles).

ARTICLE V

COVENANTS

SECTION 5.01. Covenants of the Sellers. From the date hereof until the first day
following the Facility Termination Date on which all of the Transferred Receivables are either
collected in full or become Defaulted Receivables:

(a) Compliance with Laws, Etc. Each Seller will comply in all material
respects with all applicable laws, rules, regulations and orders and preserve and maintain
its corporate existence, rights, franchises, qualifications and privileges except to the
extent that the failure so to comply with such laws, rules and regulations or the failure so
to preserve and maintain such existence, rights, franchises, qualifications, and privileges
would not materially adversely affect the collectibility of the Transferred Receivables or
the ability of such Seller to perform its obligations under this Agreement.

(b) Offices, Records and Books of Account. Each Seller will keep its principal
place of business and chief executive office and the office where it keeps its records
concerning the Transferred Receivables at the address of such Seller set forth under its
name on the signature page to this Agreement, or, upon 30 days’ days’ prior
written notice to the Purchaser, at any other locations in jurisdictions where within
the United States. Such Seller will not change its name or its state of organization,
unless (i) the Seller shall have provided the Purchaser with at least 30 days’ prior written
notice thereof, together with an updated Exhibit F, and (ii) no later than the effective
date of such change, all actions required by Section 5.01(j) shall have been taken and
completed. Upon confirmation by the Purchaser’s assignee during the existence of the
Sale Agreement or, thereafter, the Purchaser of receipt of any such notice (together with an
updated Exhibit F) and the completion, as aforesaid, of all actions required by
Section 5.01(j), Exhibit F to this Agreement shall, without further action by any party, be
deemed to be amended and replaced by the updated Exhibit F accompanying such notice.
Each Seller also will maintain and implement administrative and operating procedures
(including, without limitation, an ability to recreate records evidencing Transferred
Receivables and related Contracts in the event of the destruction of the originals thereof),
and keep and maintain all documents, books, records and other information reasonably
necessary or advisable for the collection of all Transferred Receivables (including, without
limitation, records adequate to permit the daily identification of each new Transferred
Receivable and all Collections of and adjustments to each existing Transferred Receivable).
Each Seller shall make a notation in its books and records, including its computer files, to
indicate which Receivables have been sold or contributed to the Purchaser hereunder.

(c) Performance and Compliance with Contracts and Credit and Collection Policy.
Each Seller will, at its expense, timely and fully perform and comply with all material
provisions, covenants and other promises required to be observed by it under the Contracts
related to the Transferred Receivables, and timely and fully comply in all material respects
with the Credit and Collection Policy in regard to each Transferred Receivable and the
related Contract.

(d) Sales, Liens, Etc. Except for the sales and contributions of Receivables
contemplated herein, each Seller will not sell, assign (by operation of law or otherwise) or
otherwise dispose of, or create or suffer to exist any Adverse Claim upon or with respect
to, any Transferred Receivable, Related Security, related Contract or Collections, or upon
or with respect to any account to which any Collections of any Transferred Receivable are
sent, or assign any right to receive income in respect thereof.

(e) Extension or Amendment of Transferred Receivables. Except as provided in
Section 6.02(c), each Seller will not extend, amend or otherwise modify the terms of any
Transferred Receivable, or amend, modify or waive any term or condition of any Contract
related thereto.

(f) Change in Business or Credit and Collection Policy. Each Seller will not
make any change in the character of its business or in the Credit and Collection Policy that
would, in either case, materially adversely affect the collectibility of the Transferred
Receivables or the ability of such Seller to perform its obligations under this Agreement.

(g) Audits. Each Seller will, from time to time during regular business hours
as requested by the Purchaser or its assigns, permit the Purchaser, or its agents,
representatives or assigns, (i) to examine and make copies of and abstracts from all books,
records and documents (including, without limitation, computer tapes and disks) in the
possession or under the control of such Seller relating to Transferred Receivables and the
Related Security, including, without limitation, the related Contracts, and (ii) to visit
the offices and properties of such Seller for the purpose of examining such materials
described in clause (i) above, and to discuss matters relating to Transferred Receivables
and the Related Security or such Seller’s Seller’s performance hereunder or under
the Contracts with any of the officers or employees of such Seller having knowledge of such
matters.

(h) Change in Payment Instructions to Obligors. Each Seller will not add or
terminate any bank or bank account as a Lock-Box Bank or Lock-Box Account from those listed
in Exhibit B to this Agreement, or make any change in its instructions to Obligors regarding
payments to be made to any Lock-Box Bank, unless the Purchaser shall have received notice of
such addition, termination or change (including an updated Exhibit B) and executed copies of
Lock-Box Agreements with each new Lock-Box Bank or with respect to each new Lock-Box
Account.

(i) Deposits to Lock-Box Accounts. Each Seller will instruct all Obligors to
remit all their payments in respect of Transferred Receivables into Lock-Box Accounts. If
such Seller shall receive any Collections directly, it shall immediately (and in any event
within two Business Days) deposit the same to a Lock-Box Account. Such Seller will not
deposit or otherwise credit, or cause or permit to be so deposited or credited, to any
Lock-Box Account cash or cash proceeds other than Collections of Transferred Receivables.

(j) Further Assurances. (i)  Each Seller agrees from time to time, at its
expense, promptly to execute and deliver all further instruments and documents, and to take
all further actions, that may be necessary or desirable, or that the Purchaser or its
assignee may reasonably request, to perfect, protect or more fully evidence the sale and
contribution of Receivables under this Agreement, or to enable the Purchaser or its assignee
to exercise and enforce its respective rights and remedies under this Agreement. Without
limiting the foregoing, such Seller will, upon the request of the Purchaser or its assignee,
(A) execute and file such financing or continuation statements, or amendments thereto, and
such other instruments and documents, that may be necessary or desirable to perfect, protect
or evidence such Transferred Receivables and any security interest in other assets of
such Seller granted hereunder; and (B) deliver to the Purchaser copies of all Contracts
relating to the Transferred Receivables and all records relating to such Contracts and the
Transferred Receivables, whether in hard copy or in magnetic tape or diskette format (which
if in magnetic tape or diskette format shall be compatible with the Purchaser’s
Purchaser’s computer equipment).

(ii) Each Seller authorizes the Purchaser or its assignee to file financing or
continuation statements, and amendments thereto and assignments thereof, relating to the
Transferred Receivables and the Related Security, the related Contracts and the Collections
with respect thereto without the signature of such Seller where permitted by law. A
photocopy or other reproduction of this Agreement shall be sufficient as a financing
statement where permitted by law. and any other assets of the Seller in which a security
interest is granted hereunder.

(iii) Each Seller shall perform its obligations under the Contracts related to the
Transferred Receivables to the same extent as if the Transferred Receivables had not been
sold or transferred.

(k) Reporting Requirements. Each Seller will provide to the Purchaser the
following:

(i) as soon as possible and in any event within five days after the occurrence
of each Event of Termination or Incipient Event of Termination, a statement of the
chief financial officer of such Seller setting forth details of such Event of
Termination or Incipient Event of Termination and the action that such Seller has
taken and proposes to take with respect thereto;

(ii) promptly after the filing or receiving thereof, copies of all reports and
notices that such Seller or any Affiliate files under ERISA with the Internal
Revenue Service or the Pension Benefit Guaranty Corporation or the U.S. Department
of Labor or that such Seller or any Affiliate receives from any of the foregoing or
from any multiemployer plan (within the meaning of Section 4001(a)(3) of ERISA) to
which such Seller or any Affiliate is or was, within the preceding five years, a
contributing employer, in each case in respect of the assessment of withdrawal
liability or an event or condition which could, in the aggregate, result in the
imposition of liability on such Seller and/or any such Affiliate in excess of
$5,000,000;

(iii) at least ten Business Days 30 days prior to any change in such
Seller’s name Seller’s name or jurisdiction of incorporation, a notice
setting forth the new name or jurisdiction of incorporation and the
effective date thereof; and

(iv) such other information respecting the Transferred Receivables or the
condition or operations, financial or otherwise, of such Seller as the Purchaser may
from time to time reasonably request.

(l) Separate Conduct of Business. Each Seller will: (i) maintain separate
corporate records and books of account from those of the Purchaser; (ii) conduct its
business from an office separate from that of the Purchaser; (iii) ensure that all oral and
written communications, including without limitation, letters, invoices, purchase orders,
contracts, statements and applications, will be made solely in its own name; (iv) have
stationery and other business forms and a mailing address and a telephone number separate
from those of the Purchaser; (v) not hold itself out as having agreed to pay, or as being
liable for, the obligations of the Purchaser; (vi) not engage in any transaction with the
Purchaser except as contemplated by this Agreement or as permitted by the Sale Agreement;
(vii) continuously maintain as official records the resolutions, agreements and other
instruments underlying the transactions contemplated by this Agreement; and (viii) disclose
on its annual financial statements (A) the effects of the transactions contemplated by this
Agreement in accordance with generally accepted accounting principles and (B) that the
assets of the Purchaser are not available to pay its creditors.

(m) Foreign Offices. Each Seller agrees that it will not take any action to
open a place of business in either the United Kingdom or Ireland without (i) providing the
Purchaser and its assignee with at least ten Business Days’ prior written notice, and
(ii) taking all actions that the Purchase Purchaser or its assignee may reasonably
request pursuant to Section 5.01(j) with respect to the laws of the United Kingdom or
Ireland, as applicable.

(n) Order Acknowledgments. Ferro Electronic agrees that all order
acknowledgments sent by Ferro Electronic will include an Ohio choice of law provision in the
form set forth in the form of order acknowledgment attached hereto as Exhibit G.

SECTION 5.02. Grant of Security Interest. To secure all obligations of each Seller
arising in connection with this Agreement, and each other agreement entered into in connection with
this Agreement, whether now or hereafter existing, due or to become due, direct or indirect, or
absolute or contingent, including, without limitation, Indemnified Amounts, payments on account of
Collections received or deemed to be received, and any other amounts due the Purchaser hereunder,
each Seller hereby assigns and grants to Purchaser a security interest in all of such Seller’s
Seller’s right, title and interest now or hereafter existing in, to and under all
Receivables which do not constitute Transferred Receivables, the Related Security and all
Collections with regard thereto.

SECTION 5.03. Covenant of each Seller and the Purchaser. Each Seller and the
Purchaser have structured this Agreement with the intention that each Purchase of Receivables
hereunder be treated as a sale of such Receivables by such Seller to the Purchaser for all purposes
and each contribution of Receivables hereunder shall be treated as an absolute transfer of such
Receivables by such Seller to the Purchaser for all purposes. Each Seller and the Purchaser shall
record each Purchase and contribution as a sale or purchase or capital contribution, as the case
may be, on its books and records, and reflect each Purchase and contribution in its financial
statements and tax returns as a sale or purchase or capital contribution, as the case may be. In
the event that, contrary to the mutual intent of each Seller and the Purchaser, any Purchase or
contribution of Receivables hereunder is not characterized as a sale or absolute transfer, such
Seller shall, effective as of the date hereof, be deemed to have granted (and such Seller hereby
does grant) to the Purchaser a first priority security interest in and to any and all Receivables,
the Related Security and the proceeds thereof to secure the repayment of all amounts advanced to
such Seller hereunder with accrued interest thereon, and this Agreement shall be deemed to be a
security agreement.

ARTICLE VI

ADMINISTRATION AND COLLECTION

SECTION 6.01. Designation of Collection Agent. The servicing, administration and
collection of the Transferred Receivables shall be conducted by such Person (the “Collection
Agent”) so designated hereunder from time to time. Until the Purchaser or its assignee gives
notice to Ferro Corporation of the designation of a new Collection Agent, Ferro Corporation is
hereby designated as, and hereby agrees to perform the duties and obligations of, the Collection
Agent pursuant to the terms hereof. Ferro Corporation agrees that such notice may be given at any
time in the Purchaser’s or assignee’s Purchaser’s or assignee’s discretion. Upon receipt
by Ferro Corporation of such notice, Ferro Corporation agrees that it will terminate its activities
as Collection Agent hereunder in a manner which the Purchaser (or its designee) believes will
facilitate the transition of the performance of such activities to the new Collection Agent, and
Ferro Corporation shall use its best efforts to assist the Purchaser (or its designee) to take over
the servicing, administration and collection of the Transferred Receivables, including, without
limitation, providing access to and copies of all computer tapes or disks and other documents or
instruments that evidence or relate to Transferred Receivables maintained in its capacity as
Collection Agent and access to all employees and officers of Ferro Corporation responsible with
respect thereto. The Purchaser at any time after giving such notice may designate as Collection
Agent any Person (including itself) to succeed Ferro Corporation or any successor Collection Agent,
if such Person shall consent and agree to the terms hereof. The Collection Agent may, with the
prior consent of the Purchaser, subcontract with any other Person for the servicing, administration
or collection of Transferred Receivables (and the Purchaser, on behalf of itself and the Agent,
hereby consents to the subcontracting to Ferro Electronic of the servicing, administration and
collection of Transferred Receivables originated by Ferro Electronic). Any such subcontract shall
not affect the Collection Agent’s Agent’s liability for performance of its duties and
obligations pursuant to the terms hereof, and any such subcontract shall automatically
terminate upon designation of a successor Collection Agent.

SECTION 6.02. Duties of Collection Agent. (a)  The Collection Agent shall take or
cause to be taken all such actions as may be necessary or advisable to collect each Transferred
Receivable from time to time, all in accordance with applicable laws, rules and regulations, with
reasonable care and diligence, and in accordance with the Credit and Collection Policy. The
Purchaser hereby appoints the Collection Agent, from time to time designated pursuant to Section
6.01, as agent to enforce its ownership and other rights in the Transferred Receivables, the
Related Security and the Collections with respect thereto. In performing its duties as Collection
Agent, the Collection Agent shall exercise the same care and apply the same policies as it would
exercise and apply if it owned the Transferred Receivables and shall act in the best interests of
the Purchaser and its assignees.

(b) Prior to the tenth Business Day of each month, the Collection Agent shall prepare and
forward to the Purchaser (i) a Monthly Report, relating to all then outstanding Transferred
Receivables, and the Related Security and Collections with respect thereto, in each case, as of the
close of business of the Collection Agent on the last day of the immediately preceding month, and
(ii) if requested by the Purchaser, a listing by Obligor of all Transferred Receivables correlating
Purchased Receivables and Purchases, together with an aging report of such Transferred Receivables.
If a Non-Investment Grade Event (but no BB Downgrade Event ) other than the 2005 Downgrade
Event or the 2006 Downgrade Events) shall have occurred and be continuing, on or prior to the
close of business on the second Business Day of each Week, the Collection Agent shall prepare and
forward to the Purchaser or its assignee a Weekly Report which shall contain information related to
the Receivables current as of the close of business on the last Business Day of the preceding Week.
If a BB Downgrade Event (other than the 2005 Downgrade Event or the 2006 Downgrade Events)
shall have occurred and be continuing, by no later than 11:00 A.M. (New York City time) on each
Business Day, the Collection Agent shall prepare and forward to the Purchaser or its assignee a
Daily Report which shall contain information relating to the Receivables current as of the close of
business on the immediately prior Business Day.

(c) If no Event of Termination or Incipient Event of Termination shall have occurred and be
continuing, Ferro Corporation, while it is the Collection Agent, may, in accordance with the Credit
and Collection Policy, extend the maturity or adjust the Outstanding Balance of any Transferred
Receivable as Ferro Corporation deems appropriate to maximize Collections thereof, or otherwise
amend or modify the terms of any Transferred Receivable.

(d) Each Seller shall deliver to the Collection Agent, and the Collection Agent shall hold in
trust for each Seller and the Purchaser in accordance with their respective interests, all
documents, instruments and records (including, without limitation, computer tapes or disks) which
evidence or relate to Transferred Receivables.

(e) The Collection Agent shall as soon as practicable following receipt turn over to the
relevant Seller any cash collections or other cash proceeds received with respect to Receivables
not constituting Transferred Receivables, less, in the event such Seller is not the Collection
Agent, all reasonable and appropriate out-of-pocket costs and expenses of the Collection Agent of
servicing, collecting and administering the Receivables to the extent not covered by the Collection
Agent Fee received by it.

(f) The Collection Agent also shall perform the other obligations of the “Collection Agent”
set forth in this Agreement with respect to the Transferred Receivables.

SECTION 6.03. Collection Agent Fee. The Purchaser shall pay to the Collection Agent,
so long as it is acting as the Collection Agent hereunder, a periodic collection fee (the
“Collection Agent Fee”) of 0.25% per annum on the average daily aggregate Outstanding
Balance of the Transferred Receivables, payable on the tenth day of each month (or, if such day is
not a Business Day, the immediately succeeding Business Day) or such other day during each calendar
month as the Purchaser and the Collection Agent shall agree.

SECTION 6.04. Certain Rights of the Purchaser. (a)  The Purchaser may, at any time,
give notice of ownership and/or direct the Obligors of Transferred Receivables and any Person
obligated on any Related Security, or any of them, that payment of all amounts payable under any
Transferred Receivable shall be made directly to the Purchaser or its designee. Each Seller hereby
transfers to the Purchaser (and its assigns and designees) the exclusive ownership and control of
each Lock-Box Account maintained by such Seller for the purpose of receiving Collections.

(b) At any time following the designation of a Collection Agent other than Ferro Corporation
pursuant to Section 6.01 or following an Event Termination, a Non-Investment Grade Event (other
than the 2005 Downgrade Event or the 2006 Downgrade Events) or an Incipient Event of
Termination:

(i) Each Seller shall, upon the Purchaser’s Purchaser’s request and at such
Seller’s Seller’s expense, give notice of the Purchaser’s ownership to each Obligor
of Transferred Receivables and direct that payments of all amounts payable under such
Transferred Receivables be made directly to the Purchaser or its designee.

(ii) At the Purchaser’s Purchaser’s request and at the relevant Seller’s
Seller’s expense, each Seller and the Collection Agent shall (A) assemble all of the
documents, instruments and other records (including, without limitation, computer tapes and
disks) that evidence or relate to the Transferred Receivables, and the related Contracts and
Related Security, or that are otherwise necessary or desirable to collect the Transferred
Receivables, and shall make the same available to the Purchaser at a place selected by the
Purchaser or its designee, and (B) segregate all cash, checks and other instruments received
by it from time to time constituting Collections of Transferred Receivables in a manner
acceptable to the Purchaser and, promptly upon receipt, remit all such cash, checks and
instruments, duly indorsed or with duly executed instruments of transfer, to the Purchaser
or its designee. The Purchaser shall also have the right to make copies of all such
documents, instruments and other records at any time.

(iii) Each Seller authorizes the Purchaser to take any and all steps in such Seller’s
Seller’s name and on behalf of such Seller that are necessary or desirable, in the
determination of the Purchaser, to collect amounts due under the Transferred Receivables,
including, without limitation, endorsing such Seller’s Seller’s name on checks and
other instruments representing Collections of Transferred Receivables and enforcing the
Transferred Receivables and the Related Security and related Contracts.

SECTION 6.05. Rights and Remedies. (a)  If either Seller or the Collection Agent
fails to perform any of its obligations under this Agreement, the Purchaser may (but shall not be
required to) itself perform, or cause performance of, such obligation, and, if such Seller (as
Collection Agent or otherwise) fails to so perform, the costs and expenses of the Purchaser
incurred in connection therewith shall be payable by such Seller as provided in Section 8.01 or
Section 9.04 as applicable.

(b) Each Seller shall perform all of its obligations under the Contracts related to the
Transferred Receivables to the same extent as if such Seller had not sold or contributed
Receivables hereunder and the exercise by the Purchaser of its rights hereunder shall not relieve
such Seller from such obligations or its obligations with respect to the Transferred Receivables.
The Purchaser shall not have any obligation or liability with respect to any Transferred
Receivables or related Contracts, nor shall the Purchaser be obligated to perform any of the
obligations of such Seller thereunder.

(c) Each Seller shall cooperate with the Collection Agent in collecting amounts due from
Obligors in respect of the Transferred Receivables.

(d) Each Seller hereby grants to Collection Agent an irrevocable power of attorney, with full
power of substitution, coupled with an interest, to take in the name of such Seller all steps
necessary or advisable to endorse, negotiate or otherwise realize on any writing or other right of
any kind held or transmitted by such Seller or transmitted or received by Purchaser (whether or not
from such Seller) in connection with any Transferred Receivable.

SECTION 6.06. Transfer of Records to Purchaser. Each Purchase and contribution of
Receivables hereunder shall include the transfer to the Purchaser of all of the relevant Seller’s
Seller’s right and title to and interest in the records relating to such Receivables and
shall include an irrevocable non-exclusive license to the use of such Seller’s Seller’s
computer software system to access and create such records. Such license shall be without royalty
or payment of any kind, is coupled with an interest, and shall be irrevocable until all of the
Transferred Receivables are either collected in full or become Defaulted Receivables.

Each Seller shall take such action requested by the Purchaser, from time to time hereafter,
that may be necessary or appropriate to ensure that the Purchaser has an enforceable ownership
interest in the records relating to the Transferred Receivables and rights (whether by ownership,
license or sublicense) to the use of such Seller’s Seller’s computer software system to
access and create such records.

In recognition of each Seller’s Seller’s need to have access to the records
transferred to the Purchaser hereunder, the Purchaser hereby grants to such Seller an irrevocable
license to access such records in connection with any activity arising in the ordinary course of
such Seller’s Seller’s business or in performance of its duties as Collection Agent,
provided that (i) such Seller shall not disrupt or otherwise interfere with the Purchaser’s
Purchaser’s use of and access to such records during such license period and (ii) such
Seller consents to the assignment and delivery of the records (including any information contained
therein relating to such Seller or its operations) to any assignees or transferees of the Purchaser
provided they agree to hold such records confidential.

ARTICLE VII

EVENTS OF TERMINATION

SECTION 7.01. Events of Termination. If any of the following events (“Events of
Termination”) shall occur and be continuing:

(a) The Collection Agent (if it is Ferro Corporation or any of its Affiliates)
(i) shall fail to perform or observe any term, covenant or agreement under this Agreement
(other than as referred to in clauses (ii), (iii), (iv) or (v) of this subsection (a)) and
such failure shall remain unremedied for five Business Days, or (ii) shall fail to make when
due any payment or deposit to be made by it under this Agreement, or (iii) shall fail to
deliver any Monthly Report when due and such failure shall remain unremedied for
three Business Days, or (iv) shall fail to deliver any Weekly Report when due and such
failure shall remain unremedied for more than two Business Days, or (v) shall fail to
deliver any Daily Report when due and such failure shall remain unremedied for more than two
Business Days, or shall fail to deliver when due more than two Daily Reports in any calendar
week; or

(b) Ferro Corporation shall fail to transfer to the Purchaser when requested any
rights, pursuant to this Agreement, which Ferro Corporation then has as Collection Agent, or
either Seller shall fail to make any payment required under Section 2.04(a) or 2.04(b); or

(c) Any representation or warranty made or deemed made by either Seller (or any of its
officers) under or in connection with this Agreement or any information or report delivered
by such Seller pursuant to this Agreement shall prove to have been incorrect or untrue in
any material respect when made or deemed made or delivered; or

(d) Either Seller shall fail to perform or observe any other term, covenant or
agreement contained in this Agreement on its part to be performed or observed and any such
failure shall remain unremedied for 10 days after written notice thereof shall have been
given to the Seller by the Purchaser; or

(e) Either Seller shall fail to pay any principal of or premium or interest on any of
its Debt which is outstanding in a principal amount of at least $5,000,000 in the aggregate
when the same becomes due and payable (whether by scheduled maturity, required prepayment,
acceleration, demand or otherwise), and such failure shall continue after the applicable
grace period, if any, specified in the agreement or instrument relating to such Debt; or any
other event shall occur or condition shall exist under any agreement or instrument relating
to any such Debt and shall continue after the applicable grace period, if any, specified in
such agreement or instrument, if the effect of such event or condition is to accelerate, or
to permit the acceleration of, the maturity of such Debt; or any such Debt shall be declared
to be due and payable, or required to be prepaid (other than by a regularly scheduled
required prepayment), redeemed, purchased or defeased, or an offer to repay, redeem,
purchase or defease such Debt shall be required to be made, in each case prior to the stated
maturity thereof; or

(f) Any Purchase or contribution of Receivables hereunder, the Related Security and the
Collections with respect thereto shall for any reason cease to constitute valid and
perfected ownership of such Receivables, Related Security and Collections free and clear of
any Adverse Claim; or

(g) Either Seller shall generally not pay its debts as such debts become due, or shall
admit in writing its inability to pay its debts generally, or shall make a general
assignment for the benefit of creditors; or any proceeding shall be instituted by or against
either Seller seeking to adjudicate it a bankrupt or insolvent, or seeking liquidation,
winding up, reorganization, arrangement, adjustment, protection, relief, or composition of
it or its debts under any law relating to bankruptcy, insolvency or reorganization or relief
of debtors, or seeking the entry of an order for relief or the appointment of a receiver,
trustee, custodian or other similar official for it or for any substantial part of its
property and, in the case of any such proceeding instituted against it (but not instituted
by it), either such proceeding shall remain undismissed or unstayed for a period of 30 days,
or any of the actions sought in such proceeding (including, without limitation, the entry of
an order for relief against, or the appointment of a receiver, trustee, custodian or other
similar official for, it or for any substantial part of its property) shall occur; or either
Seller or any of its subsidiaries shall take any corporate action to authorize any of the
actions set forth above in this subsection (g); or

(h) an Event of Termination shall have occurred under the Sale Agreement; or

(i) There shall have occurred any material adverse change in the financial condition or
operations of Ferro Corporation since December 31, 1999 2004; or there shall have
occurred any event which may materially adversely affect the collectibility of the
Transferred Receivables or the ability of either Seller to collect Transferred Receivables
or otherwise perform its obligations under this Agreement; the Purchaser hereby
acknowledges that in the event the capital stock of Ferro Corporation is no longer listed
for trading on the New York Stock Exchange (a “Delisting”), such Delisting shall not, in and
of itself and excluding the circumstances leading to such Delisting or resulting therefrom,
constitute a material adverse change in the business, operations, property or financial or
other condition of Ferro Corporation; or

(j) At least 80% of the outstanding capital stock of Ferro Electronic Materials , Inc.
shall cease to be owned, directly or indirectly, by Ferro Corporation; or

(k) The Undertaking Agreement shall cease to be in full force and effect, or Ferro
Corporation shall fail to perform or observe any term, covenant or agreement contained in
the Undertaking Agreement on its part to be performed or observed and any such failure
shall remain unremedied for fifteen days after written notice thereof shall have been given
to Ferro Corporation;

then, and in any such event, the Purchaser may, by notice to each Seller, take either or both of
the following actions: (x) declare the Facility Termination Date to have occurred (in which case
the Facility Termination Date shall be deemed to have occurred) and (y) without limiting any right
under this Agreement to replace the Collection Agent, designate another Person to succeed Ferro
Corporation as Collection Agent; provided, that, automatically upon the occurrence of any
event (without any requirement for the passage of time or the giving of notice) described in
paragraph (g) of this Section 7.01, the Facility Termination Date shall occur, Ferro Corporation
(if it is then serving as the Collection Agent) shall cease to be the Collection Agent, and the
Purchaser (or its assigns or designees) shall become the Collection Agent. Upon any such
declaration or designation or upon such automatic termination, the Purchaser shall have, in
addition to the rights and remedies under this Agreement, all other rights and remedies with
respect to the Receivables provided after default under the UCC and under other applicable law,
which rights and remedies shall be cumulative.

ARTICLE VIII

INDEMNIFICATION

SECTION 8.01. Indemnities by the Sellers. Without limiting any other rights which
the Purchaser may have hereunder or under applicable law, each Seller hereby agrees to indemnify
the Purchaser and its assigns and transferees (each, an “Indemnified Party”) from
and against any and all damages, claims, losses, liabilities and related costs and expenses,
including reasonable attorneys’ attorneys’ fees and disbursements (all of the foregoing
being collectively referred to as “Indemnified Amounts”), awarded against or incurred by
any Indemnified Party arising out of or as a result of this Agreement or the purchase or
contribution of any Transferred Receivables originated by such Seller or in respect of any
Transferred Receivable or any Contract originated by such Seller, including, without limitation,
arising out of or as a result of:

(i) the inclusion, or purported inclusion, in any Purchase of any Receivable that is
not an Eligible Receivable on the date of such Purchase, or the characterization in any
Seller Report or other statement made by such Seller of any Transferred Receivable as an
Eligible Receivable which is not an Eligible Receivable as of the date of such Seller Report
or statement;

(ii) any representation or warranty or statement made or deemed made by such Seller (or
any of its officers) under or in connection with this Agreement, which shall have been
incorrect in any material respect when made;

(iii) the failure by such Seller to comply with any applicable law, rule or regulation
with respect to any Transferred Receivable or the related Contract; or the failure of any
Transferred Receivable originated by such Seller or the related Contract to conform to any
such applicable law, rule or regulation;

(iv) the failure to vest in the Purchaser absolute ownership of the Receivables that
are, or that purport to be, the subject of a Purchase or contribution under this Agreement
and the Related Security and Collections in respect thereof, free and clear of any Adverse
Claim;

(v) the failure of such Seller to have filed, or any delay in filing, financing
statements or other similar instruments or documents under the UCC of any applicable
jurisdiction or other applicable laws with respect to any Receivables that are, or that
purport to be, the subject of a Purchase or contribution under this Agreement and the
Related Security and Collections in respect thereof, whether at the time of any Purchase or
contribution or at any subsequent time;

(vi) any dispute, claim, offset or defense (other than discharge in bankruptcy of the
Obligor) of the Obligor to the payment of any Receivable originated by such Seller that is,
or that purports to be, the subject of a Purchase or contribution under this Agreement
(including, without limitation, a defense based on such Receivable or the related Contract
not being a legal, valid and binding obligation of such Obligor enforceable against it in
accordance with its terms), or any other claim resulting from the sale of the merchandise or
services related to such Receivable or the furnishing or failure to furnish such merchandise
or services or relating to collection activities with respect to such Receivable (if such
collection activities were performed by Ferro Corporation acting as Collection Agent);

(vii) any failure of such Seller, as Collection Agent or otherwise, to perform its
duties or obligations in accordance with the provisions hereof or to perform its duties or
obligations under any Contract related to a Transferred Receivable originated by such
Seller;

(viii) any products liability or other claim arising out of or in connection with
merchandise, insurance or services which are the subject of any Contract;

(ix) the commingling of Collections of Transferred Receivables by such Seller or a
designee of such Seller, as Collection Agent or otherwise, at any time with other funds of
such Seller or an Affiliate of such Seller;

(x) any investigation, litigation or proceeding related to this Agreement or the use of
proceeds of Purchases or the ownership of Receivables, the Related Security, or Collections
with respect thereto or in respect of any Receivable, Related Security or Contract;

(xi) any failure of such Seller to comply with its covenants contained in this
Agreement;

(xii) any Collection Agent Fees or other costs and expenses payable to any replacement
Collection Agent;

(xiii) any claim brought by any Person other than an Indemnified Party arising from any
activity by such Seller or any Affiliate of such Seller in servicing, administering or
collecting any Transferred Receivable; or

(xiv) any Dilution with respect to any Transferred Receivable originated by such
Seller.

It is expressly agreed and understood by the parties hereto (i) that the foregoing indemnification
is not intended to, and shall not, constitute a guarantee of the collectibility or payment of the
Transferred Receivables and (ii) that nothing in this Section 8.01 shall require either Seller to
indemnify any Person (A) for Receivables which are not collected, not paid or uncollectible on
account of the insolvency, bankruptcy, or financial inability to pay of the applicable Obligor,
(B) for damages, losses, claims or liabilities or related costs or expenses resulting from such
Person’s to the extent found in a final non-appealable judgment of a court of competent
jurisdiction to have resulted from such Person’s gross negligence or willful misconduct, or
(C) for any income taxes or franchise taxes incurred by such Person arising out of or as a result
of this Agreement or in respect of any Transferred Receivable or any Contract.

ARTICLE IX

MISCELLANEOUS

SECTION 9.01. Amendments, Etc. No amendment or waiver of any provision of this
Agreement or consent to any departure by either Seller therefrom shall be effective unless in a
writing signed by the Purchaser and, in the case of any amendment, also signed by the Sellers, and
then such amendment, waiver or consent shall be effective only in the specific instance and for the
specific purpose for which given. No failure on the part of the Purchaser to exercise, and no
delay in exercising, any right hereunder shall operate as a waiver thereof; nor shall any single or
partial exercise of any right hereunder preclude any other or further exercise thereof or the
exercise of any other right. Notwithstanding any other provision of this Section 9.01,
Exhibit F hereto may be amended in accordance with the procedures set forth in Section 5.01(b).

SECTION 9.02. Notices, Etc. All notices and other communications hereunder shall,
unless otherwise stated herein, be in writing (which shall include facsimile communication) and be
faxed or delivered, to each party hereto, at its address set forth under its name on the signature
pages hereof or at such other address as shall be designated by such party in a written notice to
the other parties hereto. Notices and communications by facsimile shall be effective when sent
(and shall be followed by hard copy sent by regular mail), and notices and communications sent by
other means shall be effective when received.

SECTION 9.03. Binding Effect; Assignability. (a)  This Agreement shall be binding
upon and inure to the benefit of the Sellers, the Purchaser and their respective successors and
assigns; provided, however, that neither Seller may assign its rights or
obligations hereunder or any interest herein without the prior written consent of the Purchaser.
In connection with any sale or assignment by the Purchaser of all or a portion of the Transferred
Receivables, the buyer or assignee, as the case may be, shall, to the extent of its purchase or
assignment, have all rights of the Purchaser under this Agreement (as if such buyer or assignee, as
the case may be, were the Purchaser hereunder) except to the extent specifically provided in the
agreement between the Purchaser and such buyer or assignee, as the case may be.

(b) This Agreement shall create and constitute the continuing obligations of the parties
hereto in accordance with its terms, and shall remain in full force and effect until such time,
after the Facility Termination Date, when all of the Transferred Receivables are either collected
in full or become Defaulted Receivables; provided, however, that rights and
remedies with respect to any breach of any representation and warranty made by either Seller
pursuant to Article IV and the provisions of Article VIII and Sections 9.04, 9.05 and 9.06 shall be
continuing and shall survive any termination of this Agreement.

SECTION 9.04. Costs, Expenses and Taxes. (a)  In addition to the rights of
indemnification granted to the Purchaser pursuant to Article VIII hereof, each Seller agrees to pay
on demand all costs and expenses in connection with the preparation, execution and delivery of this
Agreement and the other documents and agreements to be delivered hereunder, including, without
limitation, the reasonable fees and out-of-pocket expenses of counsel for the Purchaser with
respect thereto and with respect to advising the Purchaser as to its rights and remedies under this
Agreement, and each Seller agrees to pay all costs and expenses, if any (including reasonable
counsel fees and expenses), in connection with the enforcement of this Agreement and the other
documents to be delivered hereunder excluding, however, any costs of enforcement or
collection of Transferred Receivables which are not paid on account of the insolvency, bankruptcy
or financial inability to pay of the applicable Obligor.

(b) In addition, each Seller agrees to pay any and all stamp and other taxes and fees payable
in connection with the execution, delivery, filing and recording of this Agreement or the other
documents or agreements to be delivered hereunder, and each Seller agrees to save each Indemnified
Party harmless from and against any liabilities with respect to or resulting from any delay in
paying or omission to pay such taxes and fees.

SECTION 9.05. No Proceedings. Each Seller hereby agrees that it will not institute
against the Purchaser any proceeding of the type referred to in Section 7.01(g) so long as there
shall not have elapsed one year plus one day since the later of (i) the Facility Termination Date
and (ii) the date on which all of the Transferred Receivables are either collected in full or
become Defaulted Receivables.

SECTION 9.06. Confidentiality. Each party hereto agrees to maintain the
confidentiality of this Agreement in communications with third parties and otherwise; provided that
this Agreement may be disclosed (i) to third parties to the extent such disclosure is made pursuant
to a written agreement of confidentiality in form and substance reasonably satisfactory to the
other party hereto, and (ii) to such party’s party’s legal counsel and auditors and the
Purchaser’s Purchaser’s assignees, if they agree in each case to hold it confidential and
(iii) to the extent required by applicable law or regulation or by any court, regulatory body or
agency having jurisdiction over such party (including, without limitation, the filing of this
Agreement with the SEC as an exhibit to an annual or quarterly report under the Securities Exchange
Act of 1934); and provided, further, that such party shall have no obligation of
confidentiality in respect of any information which may be generally available to the public or
becomes available to the public through no fault of such party.

SECTION 9.07. GOVERNING LAW. THIS AGREEMENT, IN ACCORDANCE WITH SECTION 5-1401 OF
THE GENERAL OBLIGATIONS LAW OF THE STATE OF NEW YORK, SHALL BE GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO ANY CONFLICT OF LAWS
PRINCIPLES THEREOF THAT WOULD CALL FOR THE APPLICATION OF THE LAWS OF ANY OTHER JURISDICTION,
EXCEPT TO THE EXTENT THAT, PURSUANT TO THE UCC OF THE STATE OF NEW YORK, THE PERFECTION AND THE
EFFECT OF PERFECTION OR NON-PERFECTION OF THE PURCHASER’S PURCHASER’S OWNERSHIP OF OR
SECURITY INTEREST IN THE RECEIVABLES ARE GOVERNED BY THE LAWS OF A JURISDICTION OTHER THAN THE
STATE OF NEW YORK; PROVIDED, HOWEVER, THAT SECTION 2.02(e) SHALL BE GOVERNED BY THE LAWS OF THE
FEDERAL REPUBLIC OF GERMANY.

SECTION 9.08. Third Party Beneficiary. Each of the parties hereto hereby acknowledges
that the Purchaser may assign all or any portion of its rights under this Agreement and that such
assignees may (except as otherwise agreed to by such assignees) further assign their rights under
this Agreement, and each Seller hereby consents to any such assignments. All such assignees,
including parties to the Sale Agreement in the case of assignment to such parties, shall be third
party beneficiaries of, and shall be entitled to enforce the Purchaser’s Purchaser’s rights
and remedies under, this Agreement to the same extent as if they were parties thereto, except to
the extent specifically limited under the terms of their assignment.

SECTION 9.09. Execution in Counterparts. This Agreement may be executed in any
number of counterparts, each of which when so executed shall be deemed to be an original and all of
which when taken together shall constitute one and the same agreement.

SECTION 9.10. Judgment. (a)  If for the purposes of obtaining judgment in any court
it is necessary to convert a sum due hereunder in U.S. Dollars into another currency, the parties
hereto agree, to the fullest extent that they may effectively do so, that the rate of exchange used
shall be that at which in accordance with normal banking procedures the Purchaser could purchase
U.S. Dollars with such other currency at New York, New York on the Business Day preceding that on
which final judgment is given.

(b) The obligation of each Seller in respect of any sum due from it to the Purchaser hereunder
shall, notwithstanding any judgment in a currency other than U.S. Dollars, be discharged only to
the extent that on the Business Day following receipt by the Purchaser of any sum adjudged to be so
due in such other currency the Purchaser may in accordance with normal banking procedures purchase
U.S. Dollars with such other currency; if the U.S. Dollars so purchased are less than the sum
originally due to the Purchaser in U.S. Dollars, such Seller agrees, as a separate obligation and
notwithstanding any such judgment, to indemnify the Purchaser against such loss, and if the U.S.
Dollars so purchased exceed the sum originally due to the Purchaser in U.S. Dollars, the Purchaser
shall remit to such Seller such excess.

10

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IN WITNESS WHEREOF, the parties have caused this Agreement to be executed by their respective
officers thereunto duly authorized, as of the date first above written.

	 	 	SELLERS: FERRO CORPORATION CORPORATIONBy:      Treasurer

By:      

Treasurer

1000 Lakeside Avenue

Cleveland, OH 44114

Attention: Secretary

Facsimile 1000 Lakeside AvenueCleveland, OH 44114Attention: SecretaryFacsimile No.:
(216) 875-7237

FERRO ELECTRONIC MATERIALS , INC.

By:      

Treasurer

4511 Hyde Park Blvd.

Niagra Falls, NY 14305-0067

	 	 	 
	Attention: Secretary

Facsimile No.: (216)875-7275 INC.By:

	 	

     Treasurer
	 

	 	 

1000 Lakeside AvenueCleveland, OH
44114Attention: SecretaryFacsimile No.: (216)
875-7237

	 	 	PURCHASER: FERRO FINANCE CORPORATIONBy:      Treasurer
CORPORATION

By:      

Treasurer

1000 Lakeside Avenue, Suite ACleveland, OH
44114Attention: SecretaryFacsimile No.: (     )
     

11

A

Cleveland, OH 44114

Attention: Secretary

Facsimile No.: (216) 875-6147

EXHIBIT A

CREDIT AND COLLECTION POLICY

12

EXHIBIT B

LOCK-BOX BANKS

	1.	 	Bank: National City Bank, P.O. Box 5756, Cleveland, OH 44101-0756

	 	 	 	 	 
	Lock-Box No.

	 	Lock-Box Account Number

	 

	 	 	 	 
	 
	 	 	 	 
	Collections Remitted 5831

	 	 	2072964	 
	 

	 	 	 	 

Receivables originated by Ferro Corporation

2. Bank: Mellon Bank, N.A., Three Mellon Bank Center, Room 156-3502, Pittsburgh, PA 15259

ß Lock-Box No. Lock-Box Account Number Collections Remitted 40070 013-7040 Receivables originated
by Ferro Electronic

13

EXHIBIT C

FORM OF

DEFERRED PURCHASE PRICE NOTE

New York, New York

September 28, 2000

FOR VALUE RECEIVED, FERRO FINANCE CORPORATION, an Ohio corporation (the “Purchaser”),
hereby promises to pay to [NAME OF SELLER] (the “Seller”) the principal amount of this
Note, determined as described below, together with interest thereon at a rate per annum equal at
all times to 1.50% per annum above the Eurodollar Rate (as defined in the Sale Agreement) for
periods of one month, in each case in lawful money of the United States of America. Capitalized
terms used herein but not defined herein shall have the meanings assigned to such terms in the
Purchase and Contribution Agreement dated as of September 28, 2000 among the Seller, [Name of other
Seller] and the Purchaser (such agreement, as it may from time to time be amended, restated or
otherwise modified in accordance with its terms, the “Purchase and Contribution
Agreement”). This Note is the note referred to in the definition of “Deferred Purchase Price”
in the Purchase and Contribution Agreement.

The aggregate principal amount of this Note at any time shall be equal to the difference
between (a) the sum of the aggregate principal amount of this Note on the date of the issuance
hereof and each addition to the principal amount of this Note pursuant to the terms of Section 2.02
of the Purchase and Contribution Agreement minus (b) the aggregate amount of all payments made in
respect of the principal amount of this Note, in each case, as recorded on the schedule annexed to
and constituting a part of this Note, but failure to so record shall not affect the obligations of
the Purchaser to the Seller.

The entire principal amount of this Note shall be due and payable one year and one day after
the Facility Termination Date or such later date as may be agreed in writing by the Seller and the
Purchaser. The principal amount of this Note may, at the option of the Purchaser, be prepaid in
whole at any time or in part from time to time. Interest on this Note shall be paid in arrears on
each Settlement Date, at maturity and thereafter on demand. All payments hereunder shall be made
by wire transfer of immediately available funds to such account of the Seller as the Seller may
designate in writing.

Notwithstanding any other provisions contained in this Note, in no event shall the rate of
interest payable by the Purchaser under this Note exceed the highest rate of interest permissible
under applicable law.

The obligations of the Purchaser under this Deferred Purchase Price Note are subordinated in
right of payment, to the extent set forth in Section 2.03(c) of the Purchase and Contribution
Agreement, to the prior payment in full of all Capital, Yield, Fees and other obligations of the
Purchaser under the Sale Agreement.

Notwithstanding any provision to the contrary in this Deferred Purchase Price Note or
elsewhere, other than with respect to payments specifically permitted by Section 2.03(c) of the
Purchase and Contribution Agreement, no demand for any payment may be made hereunder, no payment
shall be due with respect hereto and the Seller shall have no claim for any payment hereunder prior
to the occurrence of the Facility Termination Date and then only on the date, if ever, when all
Capital, Yield, Fees and other obligations owing under the Sale Agreement shall have been paid in
full.

In the event that, notwithstanding the foregoing provision limiting such payment, the Seller
shall receive any payment or distribution on this Deferred Purchase Price Note which is not
specifically permitted by Section 2.03(c) of the Purchase and Contribution Agreement, such payment
shall be received and held in trust by the Seller for the benefit of the entities to whom the
obligations are owed under the Sale Agreement and shall be promptly paid over to such entities.

The Purchaser hereby waives diligence, presentment, demand, protest and notice of any kind
whatsoever.

Neither this Note, nor any right of the Seller to receive payments hereunder, shall, without
the prior written consent of the Purchaser and (so long as the Sale Agreement remains in effect or
any amounts remain outstanding thereunder) the Agent under the Sale Agreement, be assigned,
transferred, exchanged, pledged, hypothecated, participated or otherwise conveyed.

THIS NOTE SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW
YORK.

FERRO FINANCE CORPORATIONBy CORPORATION

	 	 	By:  Title: Treasurer

14

SCHEDULE TO DEFERRED PURCHASE PRICE NOTE

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	Addition to	 	Amount of Principal	 	Unpaid Principal	 	 
	Date	 	Principal Amount	 	Paid or Prepaid	 	Balance	 	Notation Made By

15

EXHIBIT D

FORM OF PURCHASER LOAN NOTE

New York, New York

$______________ , 2000

FOR VALUE RECEIVED,[NAME OF SELLER], a [State of incorporation] corporation (the
“Company”), hereby promises to pay to FERRO FINANCE CORPORATION (the “Lender”), no
later than twelve (12) months from the date hereof or on demand if sooner made, the principal sum
of      Dollars (or such lesser amount as shall equal the aggregate unpaid principal amount
of the Purchaser Loans made by the Lender to the Company under the Purchase and Contribution
Agreement referred to below), and to pay on each Settlement Date interest on the unpaid principal
amount of the Purchaser Loans at a rate per annum equal at all times to 1% per annum above the
Eurodollar Rate (as defined in the Sale Agreement) for periods of one month, in each case in lawful
money of the United States of America and in immediately available funds.

The date and amount of each Purchaser Loan made by the Lender to the Company from the date
hereof until the repayment of all sums due hereunder, and each payment made on account of the
principal thereof, shall be recorded by the Lender on its books and, prior to any transfer of this
Note, endorsed by the Lender on the schedule attached hereto or any continuation thereof.

This Note is one of the Purchaser Loan Notes referred to in the Purchase and Contribution
Agreement (as amended, restated or otherwise modified from time to time, the “Purchase and
Contribution Agreement”) dated as of September 28, 2000 among the Company, [Name of other
Seller] and the Lender, and evidences Purchaser Loans made by the Lender thereunder. Capitalized
terms used in this Note and not defined herein have the respective meanings assigned to them in the
Purchase and Contribution Agreement.

The principal amount of this Note may, at the option of the Company, be prepaid in whole at
any time or in part from time to time.

Notwithstanding any other provisions contained in this Note, in no event shall the rate of
interest payable by the Company under this Note exceed the highest rate of interest permissible
under applicable law.

The Company hereby waives diligence, presentment, demand, protest and notice of any kind
whatsoever with respect to this Note.

In the event the Lender shall refer this Note to an attorney for collection, the Company
agrees to pay, in addition to unpaid principal and interest, all the costs and expenses incurred in
attempting or effecting collection hereunder, including reasonable attorney’s fees, whether or not
suit is instituted.

THIS NOTE SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW
YORK.

[NAME OF SELLER]

By:     Name     

Name:Title:

16

SCHEDULE TO PURCHASER LOAN NOTE

	 	 	 	 	 	 	 	 	 
	Date

	 	Amount of Purchaser

Loan
	 	Amount of Principal

Paid or Prepaid
	 	Unpaid Principal

Balance
	 	

Notation Made By
	 

	 	 
	 	 
	 	 
	 	 

17

EXHIBIT E-1

Approved OECD Countries

1. United Kingdom

2. Germany 

3. Netherlands

4. Ireland

5. Belgium

6. France

7. Italy

8. Australia

9. Japan

10. Austria

11. Switzerland

12. Sweden

13. Spain

14. New Zealand

15. Norway

16. Denmark

18

EXHIBIT E-2

Other Approved Jurisdictions

1. South Korea

2. Mexico

3. Hungary 

4. Czech Republic

5. Taiwan

6. Israel

7. Hong Kong

8. Singapore

9. Malaysia

10. Slovenia

19

EXHIBIT F

SELLER UCC INFORMATION

Name: Ferro Corporation

Address:  1000 Lakeside Avenue

Cleveland, OH 44114

Jurisdiction of Organization: Ohio

UCC Filing Office: Ohio Secretary of State

Name: Ferro Electronic Materials Inc.

Address:  1000 Lakeside Avenue

Cleveland, OH 44114

Jurisdiction of Organization: Delaware

UCC Filing Office: Delaware Secretary of State

20

EXHIBIT G

FORM OF FERRO ELECTRONIC ORDER AND ACKNOWLEDGMENT

21

[See attached.]

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and revised document: C:\Temp\KDocs\31289942_V14.WPD

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