Document:

EX-10.1

PLEDGE AND SECURITY AGREEMENT

This PLEDGE AND SECURITY AGREEMENT, dated as of April 19, 2006 (as amended, supplemented,
amended and restated or otherwise modified from time to time, this “Security Agreement”), is made
by FERRO CORPORATION, an Ohio corporation (the “Borrower”), and each of its Domestic Subsidiaries
which are Material Subsidiaries (terms used in the preamble and the recitals have the definitions
set forth in or incorporated by reference in Article I) from time to time a party to this
Security Agreement (each individually a “Grantor” and collectively, the “Grantors”), in favor of
NATIONAL CITY BANK, as the administrative agent (together with its successor(s) thereto in such
capacity, the “Administrative Agent”) for the benefit of the Secured Parties.

W I T N E S S E T H

:

WHEREAS, this Security Agreement is made pursuant to the Credit Agreement, dated as of August
31, 2001 (as amended, supplemented, amended and restated or otherwise modified from time to time,
the “Credit Agreement”), among the Borrower, the various financial institutions and other Persons
from time to time party thereto (the “Lenders”), Credit Suisse, as Syndication Agent, and the
Administrative Agent;

WHEREAS, this Security Agreement is made for the benefit of the Administrative Agent, each
Lender and each Letter of Credit Issuer (any or all of the foregoing, together with their
respective successors and assigns, individually a “Secured Party” and collectively, the “Secured
Parties”); and

WHEREAS, it is a condition to the making of Loans and the issuance of, and participation in,
Letters of Credit, under the Credit Agreement that each Grantor shall have executed and delivered
this Security Agreement;

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, each Grantor hereby makes the following representations and warranties to the
Administration Agent and the other Secured Parties and hereby covenants and agrees with the
Administrative Agent, for the benefit of each Secured Party, as follows:

ARTICLE I

DEFINITIONS

SECTION 1.1 Certain Terms. The following terms (whether or not underscored) when used
in this Security Agreement, including its preamble and recitals, shall have the following meanings
(such definitions to be equally applicable to the singular and plural forms thereof):

“Administrative Agent” is defined in the preamble.

“Borrower” is defined in the preamble.

“Collateral” is defined in Section 2.1.

“Collateral Account” is defined in clause (b) of Section 4.3.

“Collateral Sharing Agreement” means the Collateral Sharing Agreement, dated as of April 19,
2006, (as amended, supplemented, amended and restated or otherwise modified from time to time),
among the Borrower, the other Grantors party thereto, the Administrative Agent and J. P. Morgan
Trust Company, National Association, as collateral agent under the Indentures.

“Computer Hardware and Software Collateral” means:

(a) all computer and other electronic data processing hardware, integrated computer
systems, central processing units, memory units, display terminals, printers, features,
computer elements, card readers, tape drives, hard and soft disk drives, cables, electrical
supply hardware, generators, power equalizers, accessories and all peripheral devices and
other related computer hardware, including all operating system software, utilities and
application programs in whatsoever form;

(b) all software programs (including both source code, object code and all related
applications and data files), designed for use on the computers and electronic data
processing hardware described in clause (a) above;

(c) all firmware associated therewith;

(d) all documentation (including flow charts, logic diagrams, manuals, guides,
specifications, training materials, charts and pseudo codes) with respect to such hardware,
software and firmware described in the preceding clauses (a) through (c);
and

(e) all rights with respect to all of the foregoing, including copyrights, licenses,
options, warranties, service contracts, program services, test rights, maintenance rights,
support rights, improvement rights, renewal rights and indemnifications and any
substitutions, replacements, improvements, error corrections, updates, additions or model
conversions of any of the foregoing.

“Control Agreement” means an authenticated record in form and substance satisfactory to the
Administrative Agent, that provides for the Administrative Agent to have “control” (as defined in
the UCC) over certain Collateral.

“Copyright Collateral” means all copyrights of the Grantors, registered or unregistered and
whether published or unpublished, now or hereafter in force throughout the world including all of
the Grantors’ rights, titles and interests in and to all copyrights registered in the United States
Copyright Office or anywhere else in the world and also including the copyrights referred to in
Item A of Schedule V, and registrations and recordings thereof and all applications
for registration thereof, whether pending or in preparation, all copyright licenses, including each
copyright license referred to in Item B of Schedule V, the right to sue for past,
present and future infringements of any of the foregoing, all rights corresponding thereto, all
extensions and renewals of any thereof and all Proceeds of the foregoing, including licenses,
royalties, income, payments, claims, damages and Proceeds of suit, which are owned or licensed by
the Grantors.

“Credit Agreement” is defined in the first recital.

“Distributions” means all dividends paid on Capital Stock pledged hereunder, liquidating
dividends paid on Capital Stock pledged hereunder, shares (or other designations) of Capital Stock
resulting from (or in connection with the exercise of) stock splits, reclassifications, warrants,
options, non-cash dividends, mergers, consolidations, and all other distributions (whether similar
or dissimilar to the foregoing) on or with respect to any Capital Stock constituting Collateral.

“General Intangibles” means all “general intangibles” and all “payment intangibles”, each as
defined in the UCC, and shall include all interest rate or currency protection or hedging
arrangements, all tax refunds, all licenses, permits, concessions and authorizations and all
Intellectual Property Collateral (in each case, regardless of whether characterized as general
intangibles under the UCC).

“Grantor” and “Grantors” are defined in the preamble.

“Indenture Lien” means (a) any Lien in favor of J. P. Morgan Trust Company, National
Association (successor-in-interest to Chase Manhattan Trust Company, National Association), as
trustee (and any successor trustee(s)) under that certain Indenture of the Borrower, dated as of
March 25, 1998, as the same may be amended, supplemented, amended and restated or otherwise
modified from time to time, the “1998 Indenture”), for the benefit of the holder(s) of any
securities issued thereunder and (b) any Lien in favor of J. P. Morgan Trust Company, National
Association (successor-in-interest to Society National Bank), as trustee (and any successor
trustee(s)) under that certain Indenture of the Borrower dated as of May 1, 1993, as the same may
be amended, supplemented, amended and restated or otherwise modified from time to time, the “1993
Indenture” and together with the 1998 Indenture, collectively, the “Indentures”), for the benefit
of the holder(s) of any securities issued thereunder.

“Intellectual Property Collateral” means, collectively, the Computer Hardware and Software
Collateral, the Copyright Collateral, the Patent Collateral, the Trademark Collateral and the Trade
Secrets Collateral.

“Organic Document” means, relative to any Grantor, as applicable, its certificate or articles
of incorporation, articles and memorandum of association, by-laws, certificate of partnership,
partnership agreement, certificate of formation, limited liability agreement, operating agreement
and all shareholder agreements, voting trusts and similar arrangements applicable to any of such
Grantor’s Capital Stock pledged hereunder.

“Patent Collateral” means:

(a) inventions and discoveries, whether patentable or not, all letters patent and
applications for letters patent throughout the world, including all patent applications in
preparation for filing and each patent and patent application referred to in Item A
of Schedule III;

(b) all reissues, divisions, continuations, continuations-in-part, extensions, renewals
and reexaminations of any of the items described in clause (a);

(c) all patent licenses, and other agreements providing such Grantor with the right to
use any items of the type referred to in clauses (a) and (b) above,
including each patent license referred to in Item B of Schedule III; and

(d) all Proceeds of, and rights associated with, the foregoing (including licenses,
royalties income, payments, claims, damages and Proceeds of infringement suits), the right
to sue third parties for past, present or future infringements of any patent or patent
application, and for breach or enforcement of any patent license.

“Secured Obligations” shall mean and include:

(i) the principal of and interest on the Notes issued by, and the Loans made to, the
Borrower under the Credit Agreement,

(ii) all reimbursement obligations and Unpaid Drawings with respect to Letters of
Credit issued under the Credit Agreement, and

(iii) all other Obligations and liabilities owing by the Borrower and the other Credit
Parties to the Secured Parties under the Credit Agreement and the other Credit Documents to
which the Borrower or any other Credit Party is now or may hereafter become a party
(including, without limitation, indemnities, Fees and other amounts payable thereunder),
whether primary, secondary, direct, contingent, fixed or otherwise,

in all cases whether now existing, or hereafter incurred or arising, including any such interest or
other amounts incurred or arising during the pendency of any bankruptcy, insolvency,
reorganization, receivership or similar proceeding, regardless of whether allowed or allowable in
such proceeding or subject to an automatic stay under section 362(a) of the Bankruptcy Code.

“Securities Act” is defined in clause (a) of Section 6.2.

“Secured Party” and “Secured Parties” are defined in the third recital.

“Security Agreement” is defined in the preamble.

“Specified Default” means the occurrence and continuance of (a) an Event of Default or (b) a
Default under Section 10.1(h) of the Credit Agreement.

“Termination Date” means the date on which all Secured Obligations have been indefeasibly paid
in full in cash, all Letters of Credit issued under the Credit Agreement have been terminated or
expired (or been cash collateralized) and the Total Commitment shall have terminated.

“Trademark Collateral” means :

(a) (i) all trademarks, trade names, corporate names, company names, business names,
fictitious business names, trade styles, service marks, certification marks, collective
marks, logos and other source or business identifiers, and all goodwill of the business
associated therewith, now existing or hereafter adopted or acquired including those referred
to in Item A of Schedule IV, whether currently in use or not, all
registrations and recordings thereof and all applications in connection therewith, whether
pending or in preparation for filing, including registrations, recordings and applications
in the United States Patent and Trademark Office or in any office or agency of the United
States, or any State thereof or any other country or political subdivision thereof or
otherwise, and all common-law rights relating to the foregoing, and (ii) the right to obtain
all reissues, extensions or renewals of the foregoing (collectively referred to as the
“Trademark”);

(b) all trademark licenses for the grant by or to such Grantor of any right to use any
trademark, including each trademark license referred to in Item B of Schedule
IV; and

(c) all of the goodwill of the business connected with the use of, and symbolized by
the items described in, clause (a), and to the extent applicable clause (b);

(d) the right to sue third parties for past, present and future infringements of any
Trademark Collateral described in clause (a) and, to the extent applicable,
clause (b); and

(e) all Proceeds of, and rights associated with, the foregoing, including any claim by
such Grantor against third parties for past, present or future infringement or dilution of
any Trademark, Trademark registration or Trademark license, or for any injury to the
goodwill associated with the use of any such Trademark or for breach or enforcement of any
Trademark license and all rights corresponding thereto throughout the world.

“Trade Secrets Collateral” means all common law and statutory trade secrets and all other
confidential, proprietary or useful information and all know-how obtained by or used in or
contemplated at any time for use in the business of a Grantor (all of the foregoing being
collectively called a “Trade Secret”), whether or not such Trade Secret has been reduced to a
writing or other tangible form, including all Documents and things embodying, incorporating or
referring in any way to such Trade Secret, all Trade Secret licenses, including each Trade Secret
license referred to in Schedule VI, and including the right to sue for and to enjoin and to
collect damages for the actual or threatened misappropriation of any Trade Secret and for the
breach or enforcement of any such Trade Secret license.

SECTION 1.2 Credit Agreement Definitions. Unless otherwise defined herein or the
context otherwise requires, terms used in this Security Agreement, including its preamble and
recitals, have the meanings provided in the Credit Agreement.

SECTION 1.3 UCC Definitions. When used herein the terms Account, Certificated
Securities, Chattel Paper, Commercial Tort Claim, Commodity Account, Commodity Contract, Deposit
Account, Document, Electronic Chattel Paper, Equipment, Goods, Instrument, Inventory, Investment
Property, Letter-of-Credit Rights, Proceeds, Promissory Notes, Securities Account, Security
Entitlement, Supporting Obligations and Uncertificated Securities have the meaning provided in
Article 8 or Article 9, as applicable, of the UCC. Letters of Credit has the meaning provided in
Section 5-102 of the UCC.

ARTICLE II

SECURITY INTEREST

SECTION 2.1 Grant of Security Interest. Each Grantor hereby grants to the
Administrative Agent, for its benefit and the ratable benefit of each other Secured Party, a
continuing security interest, and a right to set-off against, any and all right, title and interest
of such Grantor’s in and to the following property, whether now or hereafter existing, owned or
acquired by such Grantor, and wherever located (collectively, the “Collateral”):

(a) Accounts;

(b) Chattel Paper;

(c) Commercial Tort Claims listed on Item I of Schedule II (as such
schedule may be amended or supplemented from time to time);

(d) Deposit Accounts;

(e) Documents;

(f) General Intangibles;

(g) Goods;

(h) Instruments;

(i) Investment Property;

(j) Letter-of-Credit Rights and Letters of Credit (other than such as is collateral for
or issued subject to or in connection with the Borrower’s existing accounts receivable
securitization program);

(k) Supporting Obligations;

(l) all books, records, writings, databases, computer programs, tapes, disks, related
data processing software (owned by such Grantor or in which it has an assignable interest),
information and other property relating to, used or useful in connection with, evidencing,
embodying, incorporating or referring to, any of the foregoing in this Section or are
otherwise helpful in the collection or realization thereupon;

(m) all Proceeds of the foregoing and, to the extent not otherwise included, (A) all
payments under insurance (whether or not the Administrative Agent is the loss payee thereof)
and (B) all tort claims; and

(n) all other property and rights of every kind and description and interests therein.

Notwithstanding the foregoing, the term “Collateral” shall not include:

(i) such Grantor’s real property interests (including fee real estate,
leasehold interests and fixtures);

(ii) any General Intangibles or other rights arising under any contracts,
instruments, licenses or other documents as to which the grant of a security
interest would (A) constitute a violation of a valid and enforceable restriction in
favor of a third party on such grant, unless and until any required consents shall
have been obtained, or (B) give any other party to such contract, instrument,
license or other document the right to terminate its obligations thereunder;

(iii) Investment Property consisting of Capital Stock of any Subsidiary of any
Grantor that is not a Material Subsidiary;

(iv) Investment Property consisting of Capital Stock of a Foreign Subsidiary of
such Grantor, in excess of 65% of the total combined voting power of all Capital
Stock of each such Foreign Subsidiary, except that such 65% limitation shall not
apply to a Foreign Subsidiary that (x) is treated as a partnership under the Code or
(y) is not treated as an entity that is separate from (A) such Grantor; (B) any
Person that is treated as a partnership under the Code or (C) any “United States
person” (as defined in Section 7701(a)(30) of the Code);

(v) any asset, the granting of a security interest in which would be void or
illegal under any applicable governmental law, rule or regulation, or pursuant
thereto would result in, or permit the termination of, such asset;

(vi) any asset subject to a Permitted Lien or an Indenture Lien (other than
Liens in favor of the Administrative Agent) to the extent that the grant of other
Liens on such asset (A) would result in a breach or violation of, or constitute a
default under, the agreement or instrument governing such Permitted Lien or such
Indenture Lien, (B) would result in the loss of use of such asset or (C) would
permit the holder of such Permitted Lien or Indenture Lien to terminate the
Grantor’s use of such asset;

(vii) trade receivables and related collateral, credit support and similar
rights sold pursuant to the Borrower’s existing accounts receivable securitization
program (other than residual interests therein); or

(viii) Inventory that has been chemically combined with precious metals
inventory or inventories owned by one or more third-party lessors or consignors such
that an attempt to separate such inventories would destroy or substantially devalue
the inventory that would otherwise be subject to this Security Agreement.

SECTION 2.2 Security for Secured Obligations. This Security Agreement and the
Collateral in which the Administrative Agent for the benefit of the Secured Parties is granted a
security interest hereunder by the Grantors to secure the prompt payment and performance in full
when due, whether by lapse of time, acceleration, mandatory prepayment or otherwise, of the Secured
Obligations.

SECTION 2.3 Grantors Remain Liable. Anything herein to the contrary notwithstanding:

(a) the Grantors will remain liable under the contracts and agreements included in the
Collateral to the extent set forth therein, and will perform all of their duties and
obligations under such contracts and agreements to the same extent as if this Security
Agreement had not been executed;

(b) the exercise by the Administrative Agent of any of its rights hereunder will not
release any Grantor from any of its duties or obligations under any such contracts or
agreements included in the Collateral; and

(c) no Secured Party will have any obligation or liability under any contracts or
agreements included in the Collateral by reason of this Security Agreement, nor will any
Secured Party be obligated to perform any of the obligations or duties of any Grantor
thereunder or to take any action to collect or enforce any claim for payment assigned
hereunder.

SECTION 2.4 Distributions on Pledged Shares. In the event that any Distribution with
respect to any Capital Stock pledged hereunder is permitted to be paid (in accordance with Section
9.11 of the Credit Agreement), such Distribution or payment may be paid directly to the applicable
Grantor. If any Distribution is made in contravention of Section 9.11 of the Credit Agreement,
such Grantor shall hold the same segregated and in trust for the Administrative Agent until paid to
the Administrative Agent in accordance with Section 4.1.5.

SECTION 2.5 Security Interest Absolute, etc. This Security Agreement shall in all
respects be a continuing, absolute, unconditional and irrevocable grant of security interest, and
shall remain in full force and effect until the Termination Date. All rights of the Secured
Parties and the security interests granted to the Administrative Agent (for its benefit and the
ratable benefit of each other Secured Party) hereunder, and all obligations of the Grantors
hereunder, shall, in each case, be absolute, unconditional and irrevocable irrespective of:

(a) any lack of validity, legality or enforceability of any Credit Document;

(b) the failure of any Secured Party (i) to assert any claim or demand or to enforce
any right or remedy against any Credit Party or any other Person (including any other
Grantor) under the provisions of any Credit Document or otherwise, or (ii) to exercise any
right or remedy against any other guarantor (including any other Grantor) of, or collateral
securing, any Secured Obligations;

(c) any change in the time, manner or place of payment of, or in any other term of, all
or any part of the Secured Obligations, or any other extension, compromise or renewal of any
Secured Obligations;

(d) any reduction, limitation, impairment or termination of any Secured Obligations for
any reason, including any claim of waiver, release, surrender, alteration or compromise, and
shall not be subject to (and each Grantor hereby waives any right to or claim of) any
defense or setoff, counterclaim, recoupment or termination whatsoever by reason of the
invalidity, illegality, nongenuineness, irregularity, compromise, unenforceability of, or
any other event or occurrence affecting, any Secured Obligations or otherwise;

(e) any amendment to, rescission, waiver, or other modification of, or any consent to
or departure from, any of the terms of any Credit Document;

(f) any addition, exchange or release of any Collateral or of any Person that is (or
will become) a Grantor (including the Grantors hereunder) of the Secured Obligations, or any
surrender or non-perfection of any collateral, or any amendment to or waiver or release or
addition to, or consent to or departure from, any other guaranty held by any Secured Party
securing any of the Secured Obligations; or

(g) any other circumstance which might otherwise constitute a defense available to, or
a legal or equitable discharge of, any Credit Party, any surety or any guarantor.

SECTION 2.6 Postponement of Subrogation. Each Grantor agrees that it will not
exercise any rights against another Grantor which it may acquire by way of rights of subrogation
under any Credit Document to which it is a party. No Grantor shall seek or be entitled to seek any
contribution or reimbursement from any Credit Party, in respect of any payment made under any
Credit Document or otherwise, until following the Termination Date. Any amount paid to such
Grantor on account of any such subrogation rights prior to the Termination Date shall be held in
trust for the benefit of the Secured Parties and shall immediately be paid and turned over to the
Administrative Agent for the benefit of the Secured Parties in the exact form received by such
Grantor (duly endorsed in favor of the Administrative Agent, if required), to be credited and
applied against the Secured Obligations, whether matured or unmatured, in accordance with
Section 6.1; provided that if the Termination Date has occurred, then at such
Grantor’s request, the Administrative Agent (on behalf of the Secured Parties) will, at the expense
of such Grantor, execute and deliver to such Grantor appropriate documents (without recourse and
without representation or warranty) necessary to evidence the transfer by subrogation to such
Grantor of an interest in the Secured Obligations resulting from such payment. In furtherance of
the foregoing, at all times prior to the Termination Date, such Grantor shall refrain from taking
any action or commencing any proceeding against any Credit Party (or its successors or assigns,
whether in connection with a bankruptcy proceeding or otherwise) to recover any amounts in respect
of payments made under this Security Agreement to any Secured Party.

ARTICLE III

REPRESENTATIONS AND WARRANTIES

In order to induce the Secured Parties to enter into the Credit Agreement and make Loans, or
issue Letters of Credit thereunder, the Grantors represent and warrant to each Secured Party as set
forth below.

SECTION 3.1 As to Capital Stock of the Subsidiaries, Investment Property.

(a) With respect to any Material Subsidiary of any Grantor that is

(i) a corporation, business trust, joint stock company or similar Person, all
Capital Stock pledged hereunder issued by such Subsidiary is duly authorized and
validly issued, fully paid and non-assessable, and represented by a certificate; and

(ii) a partnership or limited liability company, no Capital Stock pledged
hereunder issued by such Subsidiary (A) is dealt in or traded on securities
exchanges or in securities markets, (B) expressly provides that such Capital Stock
is a security governed by Article 8 of the UCC or (C) is held in a Securities
Account, except, with respect to this clause (a)(ii), Capital Stock pledged
hereunder (x) for which the Administrative Agent is the registered owner or (y) with
respect to which the issuer has agreed in an authenticated record with such Grantor
and the Administrative Agent to comply with any instructions of the Administrative
Agent without the consent of such Grantor.

(b) Each Grantor has delivered all Certificated Securities constituting Collateral held
by such Grantor on the Closing Date to the Administrative Agent, together with duly executed
undated blank stock powers, or other equivalent instruments of transfer acceptable to the
Administrative Agent.

(c) With respect to Uncertificated Securities constituting Collateral owned by any
Grantor, such Grantor has caused the issuer thereof either to (i) register the
Administrative Agent as the registered owner of such security or (ii) agree in an
authenticated record with such Grantor and the Administrative Agent that such issuer will
comply with instructions with respect to such security originated by the Administrative
Agent without further consent of such Grantor (any Grantor that is an Issuer hereby
acknowledges and agrees that this Security Agreement constitutes an agreement in an
authenticated record to so comply with such instructions).

(d) The percentage of the issued and outstanding Capital Stock of each Subsidiary
pledged by each Grantor hereunder is as set forth on Schedule I.

SECTION 3.2 Grantor Name, Location, etc.

(a) The jurisdiction in which each Grantor is located for purposes of Sections 9-301
and 9-307 of the UCC is set forth in Item A of Schedule II.

(b) Each location a secured party would have filed a UCC financing statement in the
five years prior to the date hereof to perfect a security interest in Equipment, Inventory
and General Intangibles owned by such Grantor is set forth in Item B of Schedule
II.

(c) The Grantors do not have any trade names other than those set forth in Item
C of Schedule II hereto.

(d) During the four months preceding the date hereof, no Grantor has been known by any
legal name different from the one set forth on the signature page hereto, nor has such
Grantor been the subject of any merger or other corporate reorganization, except as set
forth in Item D of Schedule II hereto.

(e) Each Grantor’s federal taxpayer identification number is (and, during the four
months preceding the date hereof, such Grantor has not had a federal taxpayer identification
number different from that) set forth in Item E of Schedule II hereto.

(f) No Grantor is a party to any federal, state or local government contract except as
set forth in Item F of Schedule II hereto.

(g) No Grantor maintains any Deposit Accounts, Securities Accounts or Commodity
Accounts with any Person, in each case, except as set forth on Item G of
Schedule II.

(h) No Grantor is the beneficiary of any Letters of Credit (other than such as is
collateral for or issued subject to or in connection with the Borrower’s existing accounts
receivable securitization program), except as set forth on Item H of Schedule
II.

(i) No Grantor has Commercial Tort Claims except as set forth on Item I of
Schedule II.

(j) The name set forth on the signature page attached hereto is the true and correct
legal name (as defined in the UCC) of each Grantor.

(k) Each Grantor has obtained a legal, valid and enforceable consent of each issuer of
any Letter of Credit to the assignment of the Proceeds of such Letter of Credit to the
Administrative Agent and no Grantor has consented to, and is otherwise aware of, any Person
(other than the Administrative Agent pursuant hereto and the trustee under the Indentures)
having control (within the meaning of Section 9-104 of the UCC) over, or any other interest
in any of such Grantor’s rights in respect thereof.

SECTION 3.3 Ownership, No Liens, etc. Each Grantor owns its Collateral free and clear
of any Lien, except for any security interest (a) created by this Security Agreement and (b) in the
case of Collateral other than the Capital Stock of each Subsidiary pledged hereunder, that is a
Permitted Lien or Indenture Lien. No effective UCC financing statement or other filing similar in
effect covering all or any part of the Collateral is on file in any recording office, except those
filed in favor of the Administrative Agent relating to this Security Agreement, Permitted Liens or
Indenture Liens.

SECTION 3.4 Possession of Inventory, Control; etc.

(a) Except in the case of Dispositions permitted under the terms of the Credit
Agreement, and except for certain Collateral that is on consignment, each Grantor has, and
agrees that it will maintain, exclusive possession of its Documents, Instruments, Promissory
Notes, Goods, Equipment and Inventory, other than (i) Equipment and Inventory in transit in
the ordinary course of business, (ii) except for Equipment or Inventory that is in the
temporary possession of another Person for purposes of being serviced, Equipment and
Inventory that is in the possession or control of a warehouseman, bailee agent or other
Person (other than a Person controlled by or under common control with the Borrower) that
has been notified of the security interest created in favor of the Secured Parties pursuant
to this Security Agreement (and Grantor will use its best efforts to have such third
Person(s) authenticate a record acknowledging that it holds possession of such Collateral
for the Secured Parties’ benefit and waives any Lien (other than Permitted Liens and
Indenture Liens) held by it against such Collateral, and (iii) Instruments or Promissory
Notes that have been delivered to the Administrative Agent pursuant to Section 3.5.
In the case of Equipment or Inventory described in clause (ii) above, no lessor or
warehouseman of any premises or warehouse upon or in which such Equipment or Inventory is
located has (i) issued to a Grantor any warehouse receipt or other receipt in the nature of
a warehouse receipt in respect of any such Equipment or Inventory, (ii) issued to Grantor
any Document for any such Equipment or Inventory, (iii) to the knowledge of such Grantor
without inquiry received notification of any Secured Party’s interest (other than the
security interest granted hereunder) in any such Equipment or Inventory or (iv) any Lien on
any such Equipment or Inventory other than Permitted Liens and Indenture Liens.

(b) Each Grantor is the sole entitlement holder of its Accounts and no other Person
(other than the Administrative Agent pursuant to this Security Agreement or any other Person
with respect to Permitted Liens or Indenture Liens) has control or possession of, or any
other interest in, any of its Accounts or any other securities or property credited thereto.

SECTION 3.5 Negotiable Documents, Instruments and Chattel Paper. Each Grantor has
delivered to the Administrative Agent possession of all originals of all Documents, Instruments,
Promissory Notes, and tangible Chattel Paper owned or held by such Grantor on the Closing Date.

SECTION 3.6 Intellectual Property Collateral. Except as disclosed on Schedules
III through V, with respect to any material Intellectual Property Collateral that is
owned by a Grantor:

(a) such Intellectual Property Collateral is valid, subsisting, unexpired and
enforceable and has not been abandoned or adjudged invalid or unenforceable, in whole or in
part except as could not be expected to have a Material Adverse Effect;

(b) such Grantor is the sole and exclusive owner of the entire and unencumbered right,
title and interest in and to such Intellectual Property Collateral and, to Grantor’s
knowledge without inquiry, no claim has been made that the use of such Intellectual Property
Collateral does or may, conflict with, infringe, misappropriate, dilute, misuse or otherwise
violate any of the rights of any third party;

(c) such Grantor has made all necessary filings and recordations to protect its
interest in such Intellectual Property Collateral, including recordations of all of its
interests in the Patent Collateral and Trademark Collateral in the United States Patent and
Trademark Office and in corresponding offices throughout the world, and its claims to the
Copyright Collateral in the United States Copyright Office and in corresponding offices
throughout the world, and, to the extent necessary, has used proper statutory notice in
connection with its use of any material patent, Trademark and copyright in any of the
Intellectual Property Collateral;

(d) such Grantor has taken reasonable steps to safeguard its Trade Secrets and to its
knowledge without inquiry (A) none of the Trade Secrets of such Grantor has been used,
divulged, disclosed or appropriated for the benefit of any other Person other than such
Grantor; (B) no employee, independent contractor or agent of such Grantor has
misappropriated any Trade Secrets of any other Person in the course of the performance of
his or her duties as an employee, independent contractor or agent of such Grantor; and (C)
no employee, independent contractor or agent of such Grantor is in default or breach of any
term of any employment agreement, non-disclosure agreement, assignment of inventions
agreement or similar agreement or contract relating in any way to the protection, ownership,
development, use or transfer of such Grantor’s Intellectual Property Collateral;

(e) to such Grantor’s knowledge without inquiry, no third party is infringing upon any
Intellectual Property owned or used by such Grantor in any material respect, or any of its
respective licensees;

(f) no settlement or consents, covenants not to sue, nonassertion assurances, or
releases have been entered into by such Grantor or to which such Grantor is bound that
adversely affects its rights to own or use any Intellectual Property except as would not
have a Material Adverse Effect;

(g) such Grantor has not made a previous assignment, sale, transfer or agreement
constituting a present or future assignment, sale or transfer of any Intellectual Property
for purposes of granting a security interest or as Collateral that has not been terminated
or released

(h) such Grantor has executed and delivered to the Administrative Agent, Intellectual
Property Collateral security agreements for all copyrights, patents and Trademarks owned by
such Grantor, including all copyrights, patents and trademarks on Schedule III
through V (as such schedules may be amended or supplemented from time to time);

(i) such Grantor uses adequate standards of quality in the manufacture, distribution,
and sale of all products sold and in the provision of all services rendered under or in
connection with all Trademarks and has taken commercially reasonable action necessary to
insure that all licensees of the Trademarks owned by such Grantor use such adequate
standards of quality;

(j) the consummation of the transactions contemplated by the Credit Agreement and this
Security Agreement will not result in the termination or material impairment of any of the
Intellectual Property Collateral; and

(k) such Grantor owns directly or is entitled to use by license or otherwise, all
Patents, Trademarks, Trade Secrets, Copyrights, mask works, licenses, technology, know-how,
processes and rights with respect to any of the foregoing used in, necessary for or of
importance to the conduct of such Grantor’s business.

SECTION 3.7 Validity, etc.

(a) This Security Agreement creates a valid security interest in the Collateral
securing the payment of the Secured Obligations.

(b) Each Grantor has filed or caused to be filed all UCC-1 financing statements in the
filing office for each Grantor’s jurisdiction of organization listed in

Item A of Schedule II (collectively, the “Filing Statements”) (or has
authenticated and delivered to the Administrative Agent the Filing Statements suitable for
filing in such offices) and has taken all other:

(i) actions necessary to obtain control of the Collateral as provided in
Sections 9-104, 9-105, 9-106 and 9-107 of the UCC; and

(ii) actions necessary to perfect the Administrative Agent’s security interest
with respect to any Collateral evidenced by a certificate of ownership.

(c) Upon the filing of the Filing Statements with the appropriate agencies therefor the
security interests created under this Security Agreement shall constitute a perfected
security interest in the Collateral described on such Filing Statements in favor of the
Administrative Agent on behalf of the Secured Parties to the extent that a security interest
therein may be perfected by filing pursuant to the relevant UCC, prior to all other Liens,
except for Permitted Liens and Indenture Liens (in which case such security interest shall
be second in priority of right only to the Permitted Liens and Indenture Liens until the
obligations secured by such Permitted Liens or Indenture Liens have been satisfied).

SECTION 3.8 Authorization, Approval, etc. Except as have been obtained or made and
are in full force and effect, no authorization, approval or other action by, and no notice to or
filing with, any Governmental Authority or any other third party is required either

(a) for the grant by the Grantors of the security interest granted hereby or for the
execution, delivery and performance of this Security Agreement by the Grantors;

(b) for the perfection or maintenance of the security interests hereunder including the
first priority (subject to Permitted Liens, and with respect to the Common Collateral (as
defined in Collateral Sharing Agreement), on a pari passu basis, the
Indenture Liens) nature of such security interest (except with respect to the Filing
Statements or, with respect to Intellectual Property Collateral, the recordation of any
agreements with the U.S. Patent and Trademark Office or the U.S. Copyright Office) or the
exercise by the Administrative Agent of its rights and remedies hereunder; or

(c) for the exercise by the Administrative Agent of the voting or other rights provided
for in this Security Agreement, or, except (i) with respect to any securities issued by a
Subsidiary of the Grantors, as may be required in connection with a disposition of such
securities by laws affecting the offering and sale of securities generally, the remedies in
respect of the Collateral pursuant to this Security Agreement and (ii) any “change of
control” or similar filings required by state licensing agencies.

SECTION 3.9 Best Interests. It is in the best interests of each Grantor (other than
the Borrower) to execute this Security Agreement inasmuch as such Grantor will, as a result of
being a Subsidiary of the Borrower, derive substantial direct and indirect benefits from the Loans
and other extensions of credit made from time to time to the Borrower by the Lenders and each
Letter of Credit Issuer pursuant to the Credit Agreement, and each Grantor agrees that the Secured
Parties are relying on this representation in agreeing to make such Loans and other extensions of
credit pursuant to the Credit Agreement to the Borrower.

ARTICLE IV

COVENANTS

Each Grantor covenants and agrees that, until the Termination Date, such Grantor will perform,
comply with and be bound by the obligations set forth below.

SECTION 4.1 As to Investment Property, etc.

SECTION 4.1.1 Capital Stock of Subsidiaries. No Grantor will allow any of its
Subsidiaries, the Capital Stock of which is pledged hereunder:

(a) that is a corporation, business trust, joint stock company or similar Person, to
issue Uncertificated Securities;

(b) that is a partnership or limited liability company, to (i) issue Capital Stock that
are to be dealt in or traded on securities exchanges or in securities markets,

(ii) expressly provide in its Organic Documents that its Capital Stock are securities
governed by Article 8 of the UCC, or (iii) place such Subsidiary’s Capital Stock in a
Securities Account; and

(c) to issue Capital Stock in addition to or in substitution for the Capital Stock
pledged hereunder, except to such Grantor (and such Capital Stock are immediately pledged
and delivered to the Administrative Agent pursuant to the terms of this Security Agreement).

SECTION 4.1.2 Investment Property (other than Certificated Securities).

(a) With respect to any Deposit Accounts, Securities Accounts, Commodity Accounts,
Commodity Contracts or Security Entitlements constituting Investment Property owned or held
by any Grantor, such Grantor will use commercially reasonable efforts to cause the
intermediary maintaining such Investment Property to execute a Control Agreement relating to
such Investment Property pursuant to which such intermediary agrees to comply with the
Administrative Agent’s instructions with respect to such Investment Property without further
consent by such Grantor.

(b) With respect to any Uncertificated Securities (other than Uncertificated Securities
credited to a Securities Account) constituting Investment Property owned or held by any
Grantor, such Grantor will use its commercially reasonable efforts to cause the issuer of
such securities to either (i) register the Administrative Agent as the registered owner
thereof on the books and records of the issuer or (ii) execute a Control Agreement relating
to such Investment Property pursuant to which the issuer agrees to comply with the
Administrative Agent’s instructions with respect to such Uncertificated Securities without
further consent by such Grantor.

SECTION 4.1.3 Certificated Securities (Stock Powers). Each Grantor agrees that all
Certificated Securities, including the Capital Stock delivered by such Grantor pursuant to this
Security Agreement, will be accompanied by duly executed undated blank stock powers, or other
equivalent instruments of transfer reasonably acceptable to the Administrative Agent.

SECTION 4.1.4 Continuous Pledge. Each Grantor will (subject to the terms of the
Credit Agreement and the Indentures) deliver to the Administrative Agent and at all times keep
pledged to the Administrative Agent pursuant hereto, on a first-priority, perfected basis all
Investment Property, all Dividends and Distributions with respect thereto, all Payment Intangibles
to the extent they are evidenced by a Document, Instrument, Promissory Note or Chattel Paper, and
all interest and principal with respect to such Payment Intangibles, and all Proceeds and rights
from time to time received by or distributable to such Grantor in respect of any of the foregoing
Collateral. Each Grantor agrees that it will, promptly following receipt thereof, deliver to the
Administrative Agent possession of all originals of negotiable Documents, Instruments, Promissory
Notes and Chattel Paper that it acquires following the date hereof.

SECTION 4.1.5 Voting Rights; Dividends, etc. Each Grantor agrees:

(a) promptly upon receipt of notice of the occurrence and continuance of a Specified
Default from the Administrative Agent and without any request therefor by the Administrative
Agent, so long as such Specified Default shall continue, to deliver (properly endorsed where
required hereby or requested by the Administrative Agent) to the Administrative Agent all
Dividends and Distributions with respect to Investment Property, all interest, principal,
other cash payments on Payment Intangibles, and all Proceeds of the Collateral, in each case
thereafter received by such Grantor, all of which shall be held by the Administrative Agent
as additional Collateral; and

(b) with respect to Collateral consisting of general partner interests or limited
liability company interests, to promptly modify its Organic Documents to admit the
Administrative Agent as a general partner or member, as applicable, immediately upon the
occurrence and continuance of a Specified Default and so long as the Administrative Agent
has notified such Grantor of the Administrative Agent’s intention to exercise its voting
power under this clause,

(i) that the Administrative Agent may exercise (to the exclusion of such
Grantor) the voting power and all other incidental rights of ownership with respect
to any Investment Property constituting Collateral and such Grantor hereby grants
the Administrative Agent an irrevocable proxy, exercisable under such circumstances,
to vote such Investment Property; and

(ii) to promptly deliver to the Administrative Agent such additional proxies
and other documents as may be necessary to allow the Administrative Agent to
exercise such voting power.

All dividends, Distributions, interest, principal, cash payments, Payment Intangibles and Proceeds
that may at any time and from time to time be held by such Grantor, but which such Grantor is then
obligated to deliver to the Administrative Agent, shall, until delivery to the Administrative
Agent, be held by such Grantor separate and apart from its other property in trust for the
Administrative Agent. The Administrative Agent agrees that unless a Specified Default shall have
occurred and be continuing and the Administrative Agent shall have given the notice referred to in
clause (b), such Grantor will have the exclusive voting power with respect to any
Investment Property constituting Collateral and the Administrative Agent will, upon the written
request of such Grantor, promptly deliver such proxies and other documents, if any, as shall be
reasonably requested by such Grantor which are necessary to allow such Grantor to exercise that
voting power; provided that no vote shall be cast, or consent, waiver, or ratification
given, or action taken by such Grantor that would impair any such Collateral or be inconsistent
with or violate any provision of any Credit Document.

SECTION 4.2 Change of Name, etc. No Grantor will change its name or place of
incorporation or organization or federal taxpayer identification number except upon 30 days’ prior
written notice to the Administrative Agent.

SECTION 4.3 As to Accounts.

(a) Each Grantor shall have the right to collect all Accounts so long as no Specified
Default shall have occurred and be continuing.

(b) Upon (i) the occurrence and continuance of a Specified Default and (ii) the
delivery of notice by the Administrative Agent to each Grantor, all Proceeds of Collateral
received by such Grantor shall be delivered in kind to the Administrative Agent for deposit
in a Deposit Account of such Grantor maintained with the Administrative Agent (together with
any other Accounts pursuant to which any portion of the Collateral is deposited with the
Administrative Agent, the “Collateral Accounts”), and such Grantor shall not commingle any
such Proceeds, and shall hold separate and apart from all other property, all such Proceeds
in express trust for the benefit of the Administrative Agent until delivery thereof is made
to the Administrative Agent, except for proceeds which are or become subject to Grantor’s
existing accounts receivable securitization program.

(c) Following the delivery of notice pursuant to clause (b)(ii), the
Administrative Agent shall have the right to apply any amount in the Collateral Account to
the payment of any Secured Obligations which are due and payable as it deems appropriate.

(d) With respect to each of the Collateral Accounts, it is hereby confirmed and agreed
that (i) deposits in such Collateral Account are subject to a security interest as
contemplated hereby, (ii) such Collateral Account shall be under the control of the
Administrative Agent and (iii) the Administrative Agent shall have the sole right of
withdrawal over such Collateral Account.

SECTION 4.4 As to Grantors’ Use of Collateral.

(a) Subject to clause (b), each Grantor (i) may in the ordinary course of its
business, at its own expense, sell, lease or furnish under the contracts of service any of
the Inventory normally held by such Grantor for such purpose, and use and consume, in the
ordinary course of its business, any raw materials, work in process or materials normally
held by such Grantor for such purpose, (ii) will, at its own expense, endeavor to collect,
as and when due, all amounts due with respect to any of the Collateral, including the taking
of such action with respect to such collection as the Administrative Agent may request
following the occurrence of a Specified Default or, in the absence of such request, as such
Grantor may deem reasonably advisable, and (iii) may grant, in the ordinary course of
business, to any party obligated on any of the Collateral, any rebate, refund or allowance
to which such party may be lawfully entitled, and may accept, in connection therewith, the
return of Goods, the sale or lease of which shall have given rise to such Collateral.

(b) At any time following the occurrence and during the continuance of a Specified
Default, whether before or after the maturity of any of the Secured Obligations, the
Administrative Agent may (i) revoke any or all of the rights of each Grantor set forth in
clause (a), (ii) notify any parties obligated on any of the Collateral to make
payment to the Administrative Agent of any amounts due or to become due thereunder and
(iii) enforce collection of any of the Collateral by suit or otherwise and surrender,
release, or exchange all or any part thereof, or compromise or extend or renew for any
period (whether or not longer than the original period) any indebtedness thereunder or
evidenced thereby.

(c) Upon request of the Administrative Agent following the occurrence and during the
continuance of a Specified Default, each Grantor will, at its own expense, notify any
parties obligated on any of the Collateral to make payment to the Administrative Agent of
any amounts due or to become due thereunder.

(d) At any time following the occurrence and during the continuation of a Specified
Default, the Administrative Agent may endorse, in the name of such Grantor, any item,
howsoever received by the Administrative Agent, representing any payment on or other
Proceeds of any of the Collateral.

SECTION 4.5 As to Intellectual Property Collateral. Each Grantor covenants and agrees
to comply with the following provisions as such provisions relate to any Intellectual Property
Collateral material to the operations or business of such Grantor:

(a) such Grantor will not (i) do or fail to perform any act whereby any of the Patent
Collateral may lapse or become abandoned or dedicated to the public or unenforceable, (ii)
permit any of its licensees to (A) fail to continue to use any of the Trademark Collateral
in order to maintain all of the Trademark Collateral in full force free from any claim of
abandonment for non-use, (B) fail to maintain as in the past the quality of products and
services offered under all of the Trademark Collateral, (C) fail to employ all of the
Trademark Collateral registered with any federal or state or foreign authority with an
appropriate notice of such registration, (D) adopt or use any other Trademark which is
confusingly similar or a colorable imitation of any of the Trademark Collateral, (E) use any
of the Trademark Collateral registered with any federal, state or foreign authority except
for the uses for which registration or application for registration of all of the Trademark
Collateral has been made or (F) do or permit any act or knowingly omit to do any act whereby
any of the Trademark Collateral may lapse or become invalid or unenforceable, or (iii) do or
permit any act or knowingly omit to do any act whereby any of the Copyright Collateral or
any of the Trade Secrets Collateral may lapse or become invalid or unenforceable or placed
in the public domain except upon expiration of the end of an unrenewable term of a
registration thereof, unless, in the case of any of the foregoing requirements in
clauses (i), (ii) and (iii), such Grantor shall either (x)
reasonably and in good faith determine that any of such Intellectual Property Collateral is
of negligible economic value to such Grantor, or (y) the loss of the Intellectual Property
Collateral would not have a Material Adverse Effect on the business;

(b) such Grantor shall promptly notify the Administrative Agent if it knows, or has
reason to know, that any application or registration relating to any material item of the
Intellectual Property Collateral may become abandoned or dedicated to the public or placed
in the public domain or invalid or unenforceable, or of any adverse determination or
development (including the institution of, or any such determination or development in, any
proceeding in the United States Patent and Trademark Office, the United States Copyright
Office or any foreign counterpart thereof or any court) regarding such Grantor’s ownership
of any of the Intellectual Property Collateral, its right to register the same or to keep
and maintain and enforce the same;

(c) in the event that a Grantor or any of its agents, employees, designees or licensees
files an application for the registration of any Intellectual Property Collateral with the
United States Patent and Trademark Office, the United States Copyright Office or any similar
office or agency in any other country or any political subdivision thereof, it will promptly
so inform the Administrative Agent, and upon request of the Administrative Agent (subject to
the terms of the Credit Agreement), execute and deliver all agreements, instruments and
documents as the Administrative Agent may request to evidence the Administrative Agent’s
security interest in such Intellectual Property Collateral;

(d) such Grantor will take all necessary steps, including in any proceeding before the
United States Patent and Trademark Office, the United States Copyright Office or (subject to
the terms of the Credit Agreement) any similar office or agency in any other country or any
political subdivision thereof, to maintain and pursue any application (and to obtain the
relevant registration) filed with respect to, and to maintain any registration of, the
Intellectual Property Collateral, including the filing of applications for renewal,
affidavits of use, affidavits of incontestability and opposition, interference and
cancellation proceedings and the payment of fees and taxes (except to the extent that
dedication, abandonment or invalidation is permitted under the foregoing clause (a)
or (b)); and

(e) such Grantor will promptly (but no less than twice annually) execute and deliver to
the Administrative Agent (as applicable) a Patent Security Agreement, Trademark Security
Agreement and/or Copyright Security Agreement, as the case may be, in the forms of
Exhibit A, Exhibit B and Exhibit C hereto following its obtaining an
interest in any such Intellectual Property, and shall execute and deliver to the
Administrative Agent any other document required to acknowledge or register or perfect the
Administrative Agent’s interest in any part of such item of Intellectual Property Collateral
unless such Grantor shall determine in good faith (with the consent of the Administrative
Agent) that any Intellectual Property Collateral is of negligible economic value to such
Grantor.

SECTION 4.6 As to Letter-of-Credit Rights.

(a) Each Grantor, by granting a security interest in its Letter-of-Credit Rights (other
than such as is collateral for or issued subject to or in connection with the Borrower’s
existing accounts receivable securitization program) to the Administrative Agent, intends to
(and hereby does) collaterally assign to the Administrative Agent its rights (including its
contingent rights ) to the Proceeds of all Letter-of-Credit Rights of which it is or
hereafter becomes a beneficiary or assignee. Such Grantor will promptly use its
commercially reasonable efforts to cause the issuer of each Letter of Credit and each
nominated person (if any) with respect thereto to consent to such assignment of the Proceeds
thereof in a consent agreement in form and substance satisfactory to the Administrative
Agent and deliver written evidence of such consent to the Administrative Agent.

(b) Upon the occurrence of a Specified Default, such Grantor will, promptly upon
request by the Administrative Agent, (i) notify (and such Grantor hereby authorizes the
Administrative Agent to notify) the issuer and each nominated person with respect to each of
the Letters of Credit that the Proceeds thereof have been assigned to the Administrative
Agent hereunder and any payments due or to become due in respect thereof are to be made
directly to the Administrative Agent and (ii) arrange for the Administrative Agent to become
the transferee beneficiary Letter of Credit.

SECTION 4.7 As to Commercial Tort Claims. Each Grantor covenants and agrees that,
until the payment in full of the Secured Obligations and termination of all Commitments, with
respect to any Commercial Tort Claim hereafter arising, it shall deliver to the Administrative
Agent a supplement in form and substance satisfactory to the Administrative Agent, together with
all supplements to schedules thereto identifying such new Commercial Tort Claims.

SECTION 4.8 Electronic Chattel Paper and Transferable Records. If any Grantor at any
time holds or acquires an interest in any electronic chattel paper or any “transferable record,” as
that term is defined in Section 201 of the U.S. Federal Electronic Signatures in Global and
National Commerce Act, or in Section 16 of the U.S. Uniform Electronic Transactions Act as in
effect in any relevant jurisdiction, with a value in excess of $1,000,000, such Grantor shall
promptly notify the Administrative Agent thereof and, at the request of the Administrative Agent,
shall take such action as the Administrative Agent may request to vest in the Administrative Agent
control under Section 9-105 of the U.C.C. of such electronic chattel paper or control under Section
201 of the Federal Electronic Signatures in Global and National Commerce Act or, as the case may
be, Section 16 of the Uniform Electronic Transactions Act, as so in effect in such jurisdiction, of
such transferable record. The Administrative Agent agrees with such Grantor that the
Administrative Agent will arrange, pursuant to procedures satisfactory to the Administrative Agent
and so long as such procedures will not result in the Administrative Agent’s loss of control, for
the Grantor to make alterations to the electronic chattel paper or transferable record permitted
under Section 9-105 of the U.C.C. or, as the case may be, Section 201 of the U.S. Federal
Electronic Signatures in Global and National Commerce Act or Section 16 of the U.S. Uniform
Electronic Transactions Act for a party in control to allow without loss of control, unless an
Event of Default has occurred and is continuing or would occur after taking into account any action
by such Grantor with respect to such electronic chattel paper or transferable record.

SECTION 4.9 Further Assurances, etc. Each Grantor agrees that, from time to time at
its own expense, it will promptly execute and deliver all further instruments and documents, and
take all further action, that may be necessary or that the Administrative Agent may request, in
order to perfect, preserve and protect any security interest granted or purported to be granted
hereby or to enable the Administrative Agent to exercise and enforce its rights and remedies
hereunder with respect to any Collateral. Without limiting the generality of the foregoing, such
Grantor will

(a) from time to time upon the request of the Administrative Agent, promptly deliver to
the Administrative Agent such stock powers, instruments and similar documents, satisfactory
in form and substance to the Administrative Agent, with respect to such Collateral as the
Administrative Agent may request and will, from time to time upon the request of the
Administrative Agent, after the occurrence and during the continuance of any Specified
Default, promptly transfer any securities constituting Collateral into the name of any
nominee designated by the Administrative Agent; if any Collateral shall be evidenced by an
Instrument, negotiable Document, Promissory Note or tangible Chattel Paper, deliver and
pledge to the Administrative Agent hereunder such Instrument, negotiable Document,
Promissory Note or tangible Chattel Paper duly endorsed and accompanied by duly executed
instruments of transfer or assignment, all in form and substance satisfactory to the
Administrative Agent;

(b) file (and hereby authorize the Administrative Agent to file) such Filing Statements
or continuation statements, or amendments thereto, and such other instruments or notices
(including any assignment of claim form under or pursuant to the federal assignment of
claims statute, 31 U.S.C. § 3726, any successor or amended version thereof or any regulation
promulgated under or pursuant to any version thereof), as may be necessary or that the
Administrative Agent may request in order to perfect and preserve the security interests and
other rights granted or purported to be granted to the Administrative Agent hereby;

(c) deliver to the Administrative Agent and at all times keep pledged to the
Administrative Agent pursuant hereto, on a first-priority, perfected basis, at the request
of the Administrative Agent, all Investment Property constituting Collateral, all
Distributions with respect thereto, and all interest and principal with respect to
Promissory Notes, and all Proceeds and rights from time to time received by or distributable
to such Grantor in respect of any of the foregoing Collateral;

(d) not take or omit to take any action the taking or the omission of which would
result in any impairment or alteration of any obligation of the maker of any Payment
Intangible or other Instrument constituting Collateral, except as provided in Section
4.4;

(e) not create any tangible Chattel Paper without placing a legend on such tangible
Chattel Paper acceptable to the Administrative Agent indicating that the Administrative
Agent has a security interest in such Chattel Paper;

(f) furnish to the Administrative Agent, from time to time at the Administrative
Agent’s request, statements and schedules further identifying and describing the Collateral
and such other reports in connection with the Collateral as the Administrative Agent may
request, all in reasonable detail; and

(g) do all things requested by the Administrative Agent in accordance with this
Security Agreement in order to enable the Administrative Agent to have and maintain control
over the Collateral consisting of Investment Property, Deposit Accounts,
Letter-of-Credit-Rights and Electronic Chattel Paper.

With respect to the foregoing and the grant of the security interest hereunder, each Grantor hereby
authorizes the Administrative Agent to file one or more financing or continuation statements, and
amendments thereto, relative to all or any part of the Collateral. Each Grantor agrees that a
carbon, photographic or other reproduction of this Security Agreement or any UCC financing
statement covering the Collateral or any part thereof shall be sufficient as a UCC financing
statement where permitted by law. Each Grantor hereby authorizes the Administrative Agent to file
financing statements describing as the collateral covered thereby “all of the debtor’s personal
property or assets” or words to that effect, notwithstanding that such wording may be broader in
scope than the Collateral described in this Security Agreement.

SECTION 4.10 Deposit Accounts. Following the occurrence and during the continuance of
a Specified Default, at the request of the Administrative Agent or the Required Lenders, such
Grantor will maintain all of its Deposit Accounts only with the Administrative Agent or with any
depositary institution that has entered into a Control Agreement in favor of the Administrative
Agent.

ARTICLE V

THE ADMINISTRATIVE AGENT

SECTION 5.1 Administrative Agent Appointed Attorney-in-Fact. Each Grantor hereby
irrevocably appoints the Administrative Agent its attorney-in-fact, with full authority in the
place and stead of such Grantor and in the name of such Grantor or otherwise, from time to time in
the Administrative Agent’s discretion, following the occurrence and during the continuance of a
Specified Default, to take any action and to execute any instrument which the Administrative Agent
may deem necessary or reasonably advisable to accomplish the purposes of this Security Agreement,
including:

(a) to ask, demand, collect, sue for, recover, compromise, receive and give acquittance
and receipts for moneys due and to become due under or in respect of any of the Collateral;

(b) to receive, endorse, and collect any drafts or other Instruments, Documents and
Chattel Paper, in connection with clause (a) above;

(c) to file any claims or take any action or institute any proceedings which the
Administrative Agent may deem necessary or desirable for the collection of any of the
Collateral or otherwise to enforce the rights of the Administrative Agent with respect to
any of the Collateral; and

(d) to perform the affirmative obligations of such Grantor hereunder.

Each Grantor hereby acknowledges, consents and agrees that the power of attorney granted pursuant
to this Section is irrevocable and coupled with an interest.

SECTION 5.2 Administrative Agent May Perform. If any Grantor fails to perform any
agreement contained herein, the Administrative Agent may itself perform, or cause performance of,
such agreement, and the expenses of the Administrative Agent incurred in connection therewith shall
be payable by such Grantor pursuant to Section 12.1 of the Credit Agreement.

SECTION 5.3 Administrative Agent Has No Duty. The powers conferred on the
Administrative Agent hereunder are solely to protect its interest (on behalf of the Secured
Parties) in the Collateral and shall not impose any duty on it to exercise any such powers. Except
for reasonable care of any Collateral in its possession and the accounting for moneys actually
received by it hereunder, the Administrative Agent shall have no duty as to any Collateral or
responsibility for

(a) ascertaining or taking action with respect to calls, conversions, exchanges,
maturities, tenders or other matters relative to any Investment Property, whether or not the
Administrative Agent has or is deemed to have knowledge of such matters, or

(b) taking any necessary steps to preserve rights against prior parties or any other
rights pertaining to any Collateral.

SECTION 5.4 Reasonable Care. The Administrative Agent is required to exercise
reasonable care in the custody and preservation of any of the Collateral in its possession;
provided that the Administrative Agent shall be deemed to have exercised reasonable care in
the custody and preservation of any of the Collateral, if it takes such action for that purpose as
each Grantor reasonably requests in writing at times other than upon the occurrence and during the
continuance of any Specified Default, but failure of the Administrative Agent to comply with any
such request at any time shall not in itself be deemed a failure to exercise reasonable care.

ARTICLE VI

REMEDIES

SECTION 6.1 Certain Remedies. If any Specified Default shall have occurred and be
continuing:

(a) The Administrative Agent may exercise in respect of the Collateral, in addition to
other rights and remedies provided for herein or otherwise available to it, all the rights
and remedies of a Secured Party on default under the UCC (whether or not the UCC applies to
the affected Collateral) and also may

(i) take possession of any Collateral not already in its possession without
demand and without legal process;

(ii) require each Grantor to, and each Grantor hereby agrees that it will, at
its expense and upon request of the Administrative Agent forthwith, assemble all or
part of the Collateral as directed by the Administrative Agent and make it available
to the Administrative Agent at a place to be designated by the Administrative Agent
that is reasonably convenient to both parties,

(iii) enter onto the property where any Collateral is located and take
possession thereof without demand and without legal process;

(iv) without notice except as specified below, lease, license, sell or
otherwise dispose of the Collateral or any part thereof in one or more parcels at
public or private sale, at any of the Administrative Agent’s offices or elsewhere,
for cash, on credit or for future delivery, and upon such other terms as the
Administrative Agent may deem commercially reasonable. Each Grantor agrees that, to
the extent notice of sale shall be required by law, at least ten days’ prior notice
to such Grantor of the time and place of any public sale or the time after which any
private sale is to be made shall constitute reasonable notification. The
Administrative Agent shall not be obligated to make any sale of Collateral
regardless of notice of sale having been given. The Administrative Agent may
adjourn any public or private sale from time to time by announcement at the time and
place fixed therefor, and such sale may, without further notice, be made at the time
and place to which it was so adjourned.

(b) All cash Proceeds received by the Administrative Agent in respect of any sale of,
collection from, or other realization upon, all or any part of the Collateral shall be
applied by the Administrative Agent against, all or any part of the Secured Obligations as
set forth in Section 10.3 of the Credit Agreement.

(c) The Administrative Agent may

(i) transfer all or any part of the Collateral into the name of the
Administrative Agent or its nominee, with or without disclosing that such Collateral
is subject to the Lien hereunder,

(ii) notify the parties obligated on any of the Collateral to make payment to
the Administrative Agent of any amount due or to become due thereunder,

(iii) withdraw, or cause or direct the withdrawal, of all funds with respect to
the Collateral Account;

(iv) enforce collection of any of the Collateral by suit or otherwise, and
surrender, release or exchange all or any part thereof, or compromise or extend or
renew for any period (whether or not longer than the original period) any
obligations of any nature of any party with respect thereto,

(v) endorse any checks, drafts, or other writings in any Grantor’s name to
allow collection of the Collateral,

(vi) take control of any Proceeds of the Collateral, and

(vii) execute (in the name, place and stead of any Grantor) endorsements,
assignments, stock powers and other instruments of conveyance or transfer with
respect to all or any of the Collateral.

SECTION 6.2 Securities Laws. If the Administrative Agent shall determine to exercise
its right to sell all or any of the Collateral that are Capital Stock pursuant to Section
6.1, each Grantor agrees that, upon request of the Administrative Agent, each Grantor will, at
its own expense:

(a) execute and deliver, and cause (or, with respect to any issuer which is not a
Subsidiary of such Grantor, use commercially reasonable efforts to cause) each issuer of the
Collateral contemplated to be sold and the directors and officers thereof to execute and
deliver, all such instruments and documents, and do or cause to be done all such other acts
and things, as may be necessary or, in the opinion of the Administrative Agent, reasonably
advisable to register such Collateral under the provisions of the Securities Act of 1933, as
from time to time amended (the “Securities Act”), and cause the registration statement
relating thereto to become effective and to remain effective for such period as prospectuses
are required by law to be furnished, and to make all amendments and supplements thereto and
to the related prospectus which, in the opinion of the Administrative Agent, are necessary
or reasonably advisable, all in conformity with the requirements of the Securities Act and
the rules and regulations of the SEC applicable thereto, or use its commercially reasonable
efforts to exempt the Collateral under the state securities or “Blue Sky” laws and to obtain
all necessary governmental approvals for the sale of the Collateral, as requested by the
Administrative Agent;

(b) if necessary in order to effectuate such a registration or exemption, cause (or,
with respect to any issuer that is not a Subsidiary of such Grantor, use its commercially
reasonable efforts to cause) each such issuer to make available to its security holders, as
soon as practicable, an earnings statement that will satisfy the provisions of Section 11(a)
of the Securities Act; and

(c) do or cause to be done all such other acts and things as may be necessary to make
such sale of the Collateral or any part thereof valid and binding and in compliance with
applicable law.

(d) Each Grantor acknowledges the impossibility of ascertaining the amount of damages
that would be suffered by the Administrative Agent or the Secured Parties by reason of the
failure by such Grantor to perform any of the covenants contained in this Section and
consequently agrees that, if such Grantor shall fail to perform any of such covenants, it
shall pay, as liquidated damages and not as a penalty, an amount equal to the value (as
determined by the Administrative Agent) of such Collateral on the date the Administrative
Agent shall demand compliance with this Section.

SECTION 6.3 Compliance with Restrictions. Each Grantor agrees that in any sale of any
of the Collateral whenever a Specified Default shall have occurred and be continuing, the
Administrative Agent is hereby authorized to comply with any limitation or restriction in
connection with such sale as it may be advised by counsel is necessary in order to avoid any
violation of any right(s) of any third Person or applicable law (including compliance with such
procedures as may restrict the number of prospective bidders and purchasers, require that such
prospective bidders and purchasers have certain qualifications, and restrict such prospective
bidders and purchasers to Persons who will represent and agree that they are purchasing for their
own account for investment and not with a view to the distribution or resale of such Collateral),
or in order to obtain any required approval of the sale or of the purchaser by any third Person or
any Governmental Authority or official, and such Grantor further agrees that such compliance shall
not result in such sale being considered or deemed not to have been made in a commercially
reasonable manner, nor shall the Administrative Agent be liable nor accountable to such Grantor for
any discount allowed by the reason of the fact that such Collateral is sold in compliance with any
such limitation or restriction.

SECTION 6.4 Protection of Collateral. The Administrative Agent may from time to time,
at its option, perform any act which any Grantor fails to perform after being requested in writing
so to perform (it being understood that no such request need be given after the occurrence and
during the continuance of a Specified Default) and the Administrative Agent may from time to time
take any other action which the Administrative Agent deems necessary for the maintenance,
preservation or protection of any of the Collateral or of its security interest therein.

ARTICLE VII

MISCELLANEOUS PROVISIONS

SECTION 7.1 Credit Document. This Security Agreement is a Credit Document executed
pursuant to the Credit Agreement and shall (unless otherwise expressly indicated herein) be
construed, administered and applied in accordance with the terms and provisions thereof, including
Section thereof.

SECTION 7.2 Binding on Successors, Transferees and Assigns; Assignment. This Security
Agreement shall remain in full force and effect until the Termination Date has occurred, shall be
binding upon the Grantors and their successors, transferees and assigns and shall inure to the
benefit of and be enforceable by each Secured Party and its successors, transferees and assigns;
provided that no Grantor may (unless otherwise permitted under the terms of the Credit
Agreement or this Security Agreement) assign any of its obligations hereunder without the prior
written consent of all Lenders.

SECTION 7.3 Amendments, etc. No amendment to or waiver of any provision of this
Security Agreement, nor consent to any departure by any Grantor from its obligations under this
Security Agreement, shall in any event be effective unless the same shall be in writing and signed
by the Administrative Agent (on behalf of the Lenders or the Required Lenders, as the case may be,
pursuant to Section 12.12 of the Credit Agreement) and the Grantors and then such waiver or consent
shall be effective only in the specific instance and for the specific purpose for which given.

SECTION 7.4 Notices. All notices and other communications provided for hereunder
shall be in writing or by facsimile and addressed, delivered or transmitted to the appropriate
party at the address or facsimile number of such party specified in the Credit Agreement or at such
other address or facsimile number as may be designated by such party in a notice to the other
party. Any notice or other communication, if mailed and properly addressed with postage prepaid or
if properly addressed and sent by pre-paid courier service, shall be deemed given when received;
any such notice or other communication, if transmitted by facsimile, shall be deemed given when
transmitted and electronically confirmed.

SECTION 7.5 Release of Liens. Upon (a) the Disposition of Collateral in accordance
with the Credit Agreement or (b) the occurrence of the Termination Date, the security interests
granted herein shall automatically terminate with respect to (i) such Collateral (in the case of
clause (a)) or (ii) all Collateral (in the case of clause (b)). Upon any such
Disposition or termination, the Administrative Agent will, at the Grantors’ sole expense, deliver
to the Grantors, without any representations, warranties or recourse of any kind whatsoever, all
Collateral held by the Administrative Agent hereunder, and execute and deliver to the Grantors such
documents as the Grantors shall reasonably request to evidence such termination.

SECTION 7.6 Additional Grantors. Upon the execution and delivery by any other Person
of a supplement in the form of Annex I hereto, such Person shall become a “Grantor”
hereunder with the same force and effect as if it were originally a party to this Security
Agreement and named as a “Grantor” hereunder. The execution and delivery of such supplement shall
not require the consent of any other Grantor hereunder, and the rights and obligations of each
Grantor hereunder shall remain in full force and effect notwithstanding the addition of any new
Grantor as a party to this Security Agreement.

SECTION 7.7 No Waiver; Remedies. In addition to, and not in limitation of
Section 2.5, no failure on the part of any Secured Party 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. The remedies herein provided are cumulative and not exclusive of any remedies
provided by law.

SECTION 7.8 Headings. The various headings of this Security Agreement are inserted
for convenience only and shall not affect the meaning or interpretation of this Security Agreement
or any provisions thereof.

SECTION 7.9 Severability. Any provision of this Security Agreement which is
prohibited or unenforceable in any jurisdiction shall, as to such provision and such jurisdiction,
be ineffective to the extent of such prohibition or unenforceability without invalidating the
remaining provisions of this Security Agreement or affecting the validity or enforceability of such
provision in any other jurisdiction.

SECTION 7.10 Governing Law, Entire Agreement, etc. THIS SECURITY AGREEMENT SHALL BE
DEEMED TO BE A CONTRACT MADE UNDER AND GOVERNED BY THE INTERNAL LAWS OF THE STATE OF NEW YORK
(INCLUDING FOR SUCH PURPOSE SECTIONS 5-1401 AND 5-1402 OF THE GENERAL OBLIGATIONS LAW OF THE STATE
OF NEW YORK), EXCEPT TO THE EXTENT THAT THE PERFECTION, EFFECT OF PERFECTION OR NONPERFECTION, AND
PRIORITY OF THE SECURITY INTEREST HEREUNDER, OR REMEDIES HEREUNDER, IN RESPECT OF ANY PARTICULAR
COLLATERAL ARE GOVERNED BY THE LAWS OF A JURISDICTION OTHER THAN THE STATE OF NEW YORK. This
Security Agreement, the other Credit Documents and the Collateral Sharing Agreement constitute the
entire understanding among the parties hereto with respect to the subject matter hereof and thereof
and supersede any prior agreements, written or oral, with respect thereto.

SECTION 7.11 Counterparts. This Security Agreement may be executed by the parties
hereto in several counterparts, each of which shall be deemed to be an original and all of which
shall constitute together but one and the same agreement. Delivery of an executed counterpart of a
signature page to this Security Agreement by facsimile shall be effective as delivery of a manually
executed counterpart of this Security Agreement.

SECTION 7.12 Collateral Sharing Agreement. Reference is hereby made to the Collateral
Sharing Agreement pursuant to which the Indenture Liens arise. Anything in this Security Agreement,
the Credit Agreement or the Indentures to the contrary notwithstanding, the terms and conditions of
such Collateral Sharing Agreement shall govern the relative rights and obligations of the
Administrative Agent and the collateral agent under such Indentures.

1

IN WITNESS WHEREOF, each of the parties hereto has caused this Security Agreement to be
duly executed and delivered by its Authorized Officer as of the date first above written.

FERRO CORPORATION

	 	 	 	By:

Name: Thomas M. Gannon

Title: Chief Financial Officer

FERRO ELECTRONIC MATERIALS INC.

	 	 	 	By:
     

Name: Rhonda S. Ferguson

Title: Assistant Secretary

FERRO PFANSTIEHL LABORATORIES, INC.

	 	 	 	By:
     

Name: Rhonda S. Ferguson

Title: Assistant Secretary

FERRO COLOR & GLASS CORPORATION

	 	 	 	By:
     

Name: Rhonda S. Ferguson

Title: Secretary

2

NATIONAL CITY BANK,

as Administrative Agent

	 	 	 	By:
     

Name:

Title:

3

SCHEDULE I

to Security Agreement

	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Name of Grantor:	 	 	 	 	 	 

	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Common Stock

	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 

	 
	 	 	 	 	 	 	 	 	 	 
	Issuer (corporate)

	 	Cert. #
	 	# of Shares
	 	Authorized

Shares
	 	Outstanding

Shares
	 	

% of Shares Pledged
	 

	 	 
	 	 
	 	 
	 	 
	 	 

	 	 	 	 	 	 	 	 	 
	 	 	 	 	Limited Liability Company Interests
	Issuer (limited	 	% of Limited Liability	 	Type of Limited Liability
	liability company)	 	Company Interests	 	Company Interests Pledged
	 	 	 	 	Pledged	 	 	 	 

	 	 	 	 	 	 	 	 	 
	 	 	 	Partnership Interests
	Issuer (partnership)	 	 	% of Partnership	 	% of Partnership
	 	 	 	Interests Owned	 	Interests Pledged

4

SCHEDULE II

to Security Agreement

	Item A.	 	Location of each Grantor.

	 	 	 
	Name of Grantor:

	 	Location for purposes of UCC:
	 

	 	 
	 
	 	 
	[GRANTOR]

	 	[LOCATION]
	 

	 	 

	Item B.	 	Filing locations last five years.

	 	 	 
	Name of Grantor:

	 	Filing locations last five years
	 

	 	 
	 
	 	 
	[GRANTOR]

	 	[LOCATION]
	 

	 	 

	Item C.	 	Trade names.

	 	 	 
	Name of Grantor:

	 	Trade Names:
	 

	 	 
	 
	 	 
	[GRANTOR]

	 	

	 

	 	

	Item D.	 	Merger or other corporate reorganization.

	 	 	 
	Name of Grantor:

	 	Merger or other corporate reorganization:
	 

	 	 
	 
	 	 
	[GRANTOR]

	 	

	 

	 	

	Item E.	 	Taxpayer ID numbers.

	 	 	 
	Name of Grantor:

	 	Taxpayer ID numbers:
	 

	 	 
	 
	 	 
	[GRANTOR]

	 	

	 

	 	

Item F. Government Contracts.

	 	 	 
	Name of Grantor:

	 	Description of Contract:
	 

	 	 
	 
	 	 
	[GRANTOR]

	 	

	 

	 	

Item G. Deposit Accounts and Securities Accounts.

	 	 	 
	Name of Grantor:

	 	Description of Deposit Accounts and Securities

Accounts:
	 

	 	 
	 
	 	 
	[GRANTOR]

	 	

	 

	 	

Item H. Letter of Credit Rights.

	 	 	 
	Name of Grantor:

	 	Description of Letter of Credit Rights:
	 

	 	 
	 
	 	 
	[GRANTOR]

	 	

	 

	 	

Item I. Commercial Tort Claims.

	 	 	 
	Name of Grantor:

	 	Description of Commercial Tort Claims:
	 

	 	 
	 
	 	 
	[GRANTOR]

	 	

	 

	 	

	 
	 	 

5

SCHEDULE III

to Security Agreement

Item A. Patents

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Issued Patents	 	 	 	 
	Country	 	Patent No.	 	Issue Date	 	Inventor(s)	 	Title

Pending Patent Applications

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Country	 	Serial No.	 	Filing Date	 	Inventor(s)	 	Title

Patent Applications In Preparation

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Expected	 	 	 	 
	Country	 	Docket No.	 	Filing Date	 	Inventor(s)	 	Title

Item B. Patent Licenses

	 	 	 	 	 	 	 	 	 	 	 
	Country or

	 	 	 	 	 	Effective
	 	Expiration
	 	Subject
	 
	 	 	 	 	 	 	 	 	 	 
	Territory

	 	Licensor
	 	Licensee
	 	   Date  
	 	   Date  
	 	Matter
	 

	 	 
	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 	 	 

6

SCHEDULE IV

to Security Agreement

Item A. Trademarks

	 	 	 	 	 	 	 
	 	 	Registered Trademarks
	 	 
	 
	 	 	 	 	 	 
	 

	 
	 	 	 	 	 	 
	Country

	 	Trademark
	 	Registration No.
	 	Registration Date
	 

	 	 
	 	 
	 	 

Pending Trademark Applications

	 	 	 	 	 	 	 
	Country

	 	Trademark
	 	Serial No.
	 	Filing Date
	 

	 	 
	 	 
	 	 

Trademark Applications In Preparation

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	Expected	 	Products/
	Country	 	Trademark	 	Docket No.	 	Filing Date	 	Services

Item B. Trademark Licenses

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Country or	 	 	 	 	 	 	 	 	 	 	 	 	 	Effective	 	Expiration
	Territory	 	Trademark	 	Licensor	 	Licensee	 	   Date  	 	  	Date   

7

SCHEDULE V

to Security Agreement

Item A. Copyrights/Mask Works

Registered Copyrights/Mask Works

Country Registration No. Registration Date Author(s) Title

Copyright/Mask Work Pending Registration Applications

Country Serial No. Filing Date Author(s) Title

Copyright/Mask Work Registration Applications In Preparation

Expected

Country Docket No. Filing Date Author(s) Title

Item B. Copyright/Mask Work Licenses

8

SCHEDULE VI

to Security Agreement

Trade Secret or Know-How Licenses

9

EXHIBIT A

to Security Agreement

PATENT SECURITY AGREEMENT

This PATENT SECURITY AGREEMENT, dated as of      , 200     (this “Agreement”), is made by
[NAME OF GRANTOR], a      (the “Grantor”), in favor of NATIONAL CITY BANK, as the
administrative agent (together with its successor(s) thereto in such capacity, the “Administrative
Agent”) for each of the Secured Parties.

W I T N E S S E T H :

WHEREAS, this Agreement is made pursuant to the Credit Agreement, dated as of August 31, 2001
(as amended, supplemented, amended and restated or otherwise modified from time to time, the
“Credit Agreement”), among the Borrower, the various financial institutions and other persons from
time to time party thereto (the “Lenders”), Credit Suisse First Boston, as Syndication Agent, and
the Administrative Agent;

WHEREAS, in connection with the Credit Agreement, the Grantor has executed and delivered a
Pledge and Security Agreement, dated as of April 19, 2006 (as amended, supplemented, amended and
restated or otherwise modified from time to time, the “Security Agreement”);

WHEREAS, pursuant to the Credit Agreement and pursuant to clause (e) of Section 4.5 of the
Security Agreement, the Grantor is required to execute and deliver this Agreement and to grant to
the Administrative Agent a continuing security interest in all of the Patent Collateral (as defined
below) to secure all Secured Obligations; and

WHEREAS, the Grantor has duly authorized the execution, delivery and performance of this
Agreement; and

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the Grantor agrees, for the benefit of each Secured Party, as follows:

SECTION 1. Definitions. Unless otherwise defined herein or the context otherwise
requires, terms used in this Agreement, including its preamble and recitals, have the meanings
provided in the Security Agreement.

SECTION 2. Grant of Security Interest. The Grantor hereby assigns, pledges,
hypothecates, charges, mortgages, delivers, and transfers to the Administrative Agent, for its
benefit and the ratable benefit of each other Secured Party, and hereby grants to the
Administrative Agent, for its benefit and the ratable benefit of each other Secured Party, a
continuing security interest in all of the following property, whether now or hereafter existing or
acquired by the Grantor (the “Patent Collateral”):

(a) all of its letters patent and applications for letters patent throughout the world,
including all patent applications in preparation for filing and each patent and patent
application referred to in Item A of Schedule I attached hereto;

(b) all reissues, divisions, continuations, continuations-in-part, extensions, renewals
and reexaminations of any of the items described in clause (a);

(c) all of its patent licenses, and other agreements providing the Grantor with the
right to use any items of the type referred to in clauses (a) and (b) above, including each
patent license referred to in Item B of Schedule I attached hereto; and

(d) all Proceeds of, and rights associated with, the foregoing (including license
royalties and Proceeds of infringement suits), the right to sue third parties for past,
present or future infringements of any patent or patent application, and for breach or
enforcement of any patent license.

SECTION 3. Security Agreement. This Agreement has been executed and delivered by the
Grantor for the purpose of registering the security interest of the Administrative Agent in the
Patent Collateral with the United States Patent and Trademark Office and corresponding offices in
other countries of the world. The security interest granted hereby has been granted as a
supplement to, and not in limitation of, the security interest granted to the Administrative Agent
for its benefit and the ratable benefit of each other Secured Party under the Security Agreement.
The Security Agreement (and all rights and remedies of the Administrative Agent and each Secured
Party thereunder) shall remain in full force and effect in accordance with its terms.

SECTION 4. Release of Liens. Upon (i) the Disposition of Patent Collateral in
accordance with the Credit Agreement or (ii) the occurrence of the Termination Date, the security
interests granted herein shall automatically terminate with respect to (A) such Patent Collateral
(in the case of clause (i)) or (B) all Patent Collateral (in the case of clause
(ii)). Upon any such Disposition or termination, the Administrative Agent will, at the
Grantor’s sole expense, deliver to the Grantor, without any representations, warranties or recourse
of any kind whatsoever, all Patent Collateral held by the Administrative Agent hereunder, and
execute and deliver to the Grantor such Documents as the Grantor shall reasonably request to
evidence such termination.

SECTION 5. Acknowledgment. The Grantor does hereby further acknowledge and affirm
that the rights and remedies of the Administrative Agent with respect to the security interest in
the Patent Collateral granted hereby are more fully set forth in the Security Agreement, the terms
and provisions of which (including the remedies provided for therein) are incorporated by reference
herein as if fully set forth herein.

SECTION 6. Credit Document. This Agreement is a Credit Document executed pursuant to
the Credit Agreement and shall (unless otherwise expressly indicated herein) be construed,
administered and applied in accordance with the terms and provisions thereof, including Article XII
thereof.

SECTION 7. Counterparts. This Agreement may be executed by the parties hereto in
several counterparts, each of which shall be deemed to be an original and all of which shall
constitute together but one and the same agreement.

* * * * *

10

IN WITNESS WHEREOF, each of the parties hereto has caused this Agreement to be duly executed
and delivered as of the date first above written.

[NAME OF GRANTOR]

	 	 	 	By:
     

Name:

Title:

NATIONAL CITY BANK,

as Administrative Agent

	 	 	 	By:
     

Name:

Title:

11

SCHEDULE I

to Patent Security Agreement

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Item A. Patents	 	 	 	 	 	 
	Issued Patents	 	 	 	 	 	 
	Country	 	Patent No.	 	Issue Date	 	Inventor(s)	 	Title

Pending Patent Applications

Country Serial No. Filing Date Inventor(s) Title

Patent Applications in Preparation

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Expected	 	 	 	 
	Country	 	Docket No.	 	Filing Date	 	Inventor(s)	 	Title

	 	 	 	 	 	 	 	 	 	 	 
	Item B. Patent Licenses
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Country or

Territory

	 	Licensor
	 	Licensee
	 	Effective

    Date    
	 	Expiration

     Date    
	 	Subject

Matter
	 

	 	 
	 	 
	 	 
	 	 
	 	 

12

EXHIBIT B

to Security Agreement

TRADEMARK SECURITY AGREEMENT

This TRADEMARK SECURITY AGREEMENT, dated as of      , 200     (this “Agreement”),
is made by [NAME OF GRANTOR], a      (the “Grantor”), in favor of NATIONAL CITY
BANK, as the administrative agent (together with its successor(s) thereto in such capacity, the
“Administrative Agent”) for each of the Secured Parties.

W I T N E S S E T H :

WHEREAS, this Agreement is made pursuant to the Credit Agreement, dated as of August 31, 2001
(as amended, supplemented, amended and restated or otherwise modified from time to time, the
“Credit Agreement”), among the Borrower, the various financial institutions and other persons from
time to time party thereto (the “Lenders”), Credit Suisse First Boston, as Syndication Agent, and
the Administrative Agent;

WHEREAS, in connection with the Credit Agreement, the Grantor has executed and delivered a
Pledge and Security Agreement, dated as of April 19, 2006 (as amended, supplemented, amended and
restated or otherwise modified from time to time, the “Security Agreement”);

WHEREAS, pursuant to the Credit Agreement and pursuant to clause (e) of Section 4.5 of the
Security Agreement, the Grantor is required to execute and deliver this Agreement and to grant to
the Administrative Agent a continuing security interest in all of the Trademark Collateral (as
defined below) to secure all Secured Obligations; and

WHEREAS, the Grantor has duly authorized the execution, delivery and performance of this
Agreement; and

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the Grantor agrees, for the benefit of each Secured Party, as follows:

SECTION 1. Definitions. Unless otherwise defined herein or the context otherwise
requires, terms used in this Agreement, including its preamble and recitals, have the meanings
provided in the Security Agreement.

SECTION 2. Grant of Security Interest. The Grantor hereby assigns, pledges,
hypothecates, charges, mortgages, delivers, and transfers to the Administrative Agent, for its
benefit and the ratable benefit of each other Secured Party, and hereby grants to the
Administrative Agent, for its benefit and the ratable benefit of each other Secured Party, a
continuing security interest in all of the following property, whether now or hereafter existing or
acquired by the Grantor (the “Trademark Collateral”):

(a) (i) all of its Trademarks, trade names, corporate names, company names, business
names, fictitious business names, trade styles, service marks, certification marks,
collective marks, logos and other source or business identifiers, and all goodwill of the
business associated therewith, now existing or hereafter adopted or acquired including those
referred to in Item A of Schedule I hereto, whether currently in use or not,
all registrations and recordings thereof and all applications in connection therewith,
whether pending or in preparation for filing, including registrations, recordings and
applications in the United States Patent and Trademark Office or in any office or agency of
the United States of America or any State thereof or any other country or political
subdivision thereof or otherwise, and all common-law rights relating to the foregoing, and
(ii) the right to obtain all reissues, extensions or renewals of the foregoing (collectively
referred to as the “Trademark”);

(b) all Trademark licenses for the grant by or to the Grantor of any right to use any
Trademark, including each Trademark license referred to in Item B of Schedule
I hereto;

(c) all of the goodwill of the business connected with the use of, and symbolized by
the items described in, clause (a), and to the extent applicable clause (b);

(d) the right to sue third parties for past, present and future infringements of any
Trademark Collateral described in clause (a) and, to the extent applicable, clause (b); and

(e) all Proceeds of, and rights associated with, the foregoing, including any claim by
the Grantor against third parties for past, present or future infringement or dilution of
any Trademark, Trademark registration or Trademark license, or for any injury to the
goodwill associated with the use of any such Trademark or for breach or enforcement of any
Trademark license and all rights corresponding thereto throughout the world.

SECTION 3. Security Agreement. This Agreement has been executed and delivered by the
Grantor for the purpose of registering the security interest of the Administrative Agent in the
Trademark Collateral with the United States Patent and Trademark Office and corresponding offices
in other countries of the world. The security interest granted hereby has been granted as a
supplement to, and not in limitation of, the security interest granted to the Administrative Agent
for its benefit and the ratable benefit of each other Secured Party under the Security Agreement.
The Security Agreement (and all rights and remedies of the Administrative Agent and each Secured
Party thereunder) shall remain in full force and effect in accordance with its terms.

SECTION 4. Release of Liens. Upon (i) the Disposition of Trademark Collateral in
accordance with the Credit Agreement or (ii) the occurrence of the Termination Date, the security
interests granted herein shall automatically terminate with respect to (A) such Trademark
Collateral (in the case of clause (i)) or (B) all Trademark Collateral (in the case of
clause (ii)). Upon any such Disposition or termination, the Administrative Agent will, at
the Grantor’s sole expense, deliver to the Grantor, without any representations, warranties or
recourse of any kind whatsoever, all Trademark Collateral held by the Administrative Agent
hereunder, and execute and deliver to the Grantor such Documents as the Grantor shall reasonably
request to evidence such termination.

SECTION 5. Acknowledgment. The Grantor does hereby further acknowledge and affirm
that the rights and remedies of the Administrative Agent with respect to the security interest in
the Trademark Collateral granted hereby are more fully set forth in the Security Agreement, the
terms and provisions of which (including the remedies provided for therein) are incorporated by
reference herein as if fully set forth herein.

SECTION 6. Credit Document. This Agreement is a Credit Document executed pursuant to
the Credit Agreement and shall (unless otherwise expressly indicated herein) be construed,
administered and applied in accordance with the terms and provisions thereof, including Article XII
thereof.

SECTION 7. Counterparts. This Agreement may be executed by the parties hereto in
several counterparts, each of which shall be deemed to be an original and all of which shall
constitute together but one and the same agreement.

* * * * *

13

IN WITNESS WHEREOF, each of the parties hereto has caused this Agreement to be duly executed
and delivered as of the date first above written.

[NAME OF GRANTOR]

	 	 	 	By:
     

Name:

Title:

NATIONAL CITY BANK,

as Administrative Agent

	 	 	 	By:
     

Name:

Title:

14

SCHEDULE I

to Trademark Security Agreement

Item A. Trademarks

Registered Trademarks

Country Trademark Registration No. Registration Date

Pending Trademark Applications

Country Trademark Serial No. Filing Date

Trademark Applications in Preparation

Expected Products/

Country Trademark
Docket No. Filing Date
Services  

	 	 	 	 	 	 	 	 	 	 	 
	Item B. Trademark Licenses
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Country or

Territory

	 	Trademark
	 	Licensor
	 	Licensee
	 	Effective

     Date    
	 	Expiration

      Date   
	 

	 	 
	 	 
	 	 
	 	 
	 	 

15

EXHIBIT C

to Security Agreement

COPYRIGHT SECURITY AGREEMENT

This COPYRIGHT SECURITY AGREEMENT, dated as of      , 200     (this “Agreement”),
is made by [NAME OF GRANTOR], a      (the “Grantor”), in favor of NATIONAL CITY
BANK, as the administrative agent (together with its successor(s) thereto in such capacity, the
“Administrative Agent”) for each of the Secured Parties.

W I T N E S S E T H :

WHEREAS, this Agreement is made pursuant to the Credit Agreement, dated as of August 31, 2001
(as amended, supplemented, amended and restated or otherwise modified from time to time, the
“Credit Agreement”), among the Borrower, the various financial institutions and other persons from
time to time party thereto (the “Lenders”), Credit Suisse First Boston, as Syndication Agent, and
the Administrative Agent;

WHEREAS, in connection with the Credit Agreement, the Grantor has executed and delivered a
Pledge and Security Agreement, dated as of April 19, 2006 (as amended, supplemented, amended and
restated or otherwise modified from time to time, the “Security Agreement”);

WHEREAS, pursuant to the Credit Agreement and pursuant to clause (e) of Section 4.5 of the
Security Agreement, the Grantor is required to execute and deliver this Agreement and to grant to
the Administrative Agent a continuing security interest in all of the Copyright Collateral (as
defined below) to secure all Secured Obligations; and

WHEREAS, the Grantor has duly authorized the execution, delivery and performance of this
Agreement; and

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the Grantor agrees, for the benefit of each Secured Party, as follows:

SECTION 1. Definitions. Unless otherwise defined herein or the context otherwise
requires, terms used in this Agreement, including its preamble and recitals, have the meanings
provided in the Security Agreement.

SECTION 2. Grant of Security Interest. The Grantor hereby assigns, pledges,
hypothecates, charges, mortgages, delivers, and transfers to the Administrative Agent, for its
benefit and the ratable benefit of each other Secured Party, and hereby grants to the
Administrative Agent, for its benefit and the ratable benefit of each other Secured Party, a
continuing security interest in all of the following (the “Copyright Collateral”), whether
now or hereafter existing or acquired by the Grantor: all copyrights of the Grantor, whether
statutory or common law, registered or unregistered and whether published or unpublished, now or
hereafter in force throughout the world including all of the Grantor’s right, title and interest in
and to all copyrights registered in the United States Copyright Office or anywhere else in the
world and also including the copyrights referred to in Item A of Schedule I hereto,
and registrations and recordings thereof and all applications for registration thereof, whether
pending or in preparation, all copyright licenses, including each copyright license referred to in
Item B of Schedule I hereto, the right to sue for past, present and future
infringements of any of the foregoing, all rights corresponding thereto, all extensions and
renewals of any thereof and all Proceeds of the foregoing, including licenses, royalties, income,
payments, claims, damages and Proceeds of suit.

SECTION 3. Security Agreement. This Agreement has been executed and delivered by the
Grantor for the purpose of registering the security interest of the Administrative Agent in the
Copyright Collateral with the United States Copyright Office and corresponding offices in other
countries of the world. The security interest granted hereby has been granted as a supplement to,
and not in limitation of, the security interest granted to the Administrative Agent for its benefit
and the ratable benefit of each other Secured Party under the Security Agreement. The Security
Agreement (and all rights and remedies of the Administrative Agent and each Secured Party
thereunder) shall remain in full force and effect in accordance with its terms.

SECTION 4. Release of Liens. Upon (i) the Disposition of Copyright Collateral in
accordance with the Credit Agreement or (ii) the occurrence of the Termination Date, the security
interests granted herein shall automatically terminate with respect to (A) such Copyright
Collateral (in the case of clause (i)) or (B) all Copyright Collateral (in the case of
clause (ii)). Upon any such Disposition or termination, the Administrative Agent will, at
the Grantor’s sole expense, deliver to the Grantor, without any representations, warranties or
recourse of any kind whatsoever, all Copyright Collateral held by the Administrative Agent
hereunder, and execute and deliver to the Grantor such Documents as the Grantor shall reasonably
request to evidence such termination.

SECTION 5. Acknowledgment. The Grantor does hereby further acknowledge and affirm
that the rights and remedies of the Administrative Agent with respect to the security interest in
the Copyright Collateral granted hereby are more fully set forth in the Security Agreement, the
terms and provisions of which (including the remedies provided for therein) are incorporated by
reference herein as if fully set forth herein.

SECTION 6. Credit Document. This Agreement is a Credit Document executed pursuant to
the Credit Agreement and shall (unless otherwise expressly indicated herein) be construed,
administered and applied in accordance with the terms and provisions thereof, including Article XII
thereof.

SECTION 7. Counterparts. This Agreement may be executed by the parties hereto in
several counterparts, each of which shall be deemed to be an original and all of which shall
constitute together but one and the same agreement.

* * * * *

16

IN WITNESS WHEREOF, each of the parties hereto has caused this Agreement to be duly executed
and delivered by as of the date first above written.

[NAME OF GRANTOR]

	 	 	 	By:
     

Name:

Title:

NATIONAL CITY BANK,

as Administrative Agent

	 	 	 	By:
     

Name:

Title:

17

SCHEDULE I

to Copyright Security Agreement

Item A. Copyrights/Mask Works

Registered Copyrights/Mask Works

Country Registration No. Registration Date Author(s) Title

Copyright/Mask Work Pending Registration Applications

Country Serial No. Filing Date Author(s) Title

Copyright/Mask Work Registration Applications in Preparation

Expected

Country Docket No. Filing Date Author(s) Title

	 	 	 	 	 	 	 	 	 
	Item B. Copyright/Mask Work Licenses
	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Country or

Territory

	 	Licensor
	 	Licensee
	 	Effective

    Date      
	 	Expiration

    Date        
	 

	 	 
	 	 
	 	 
	 	 

18

ANNEX I

to Security Agreement

SUPPLEMENT TO

PLEDGE AND SECURITY AGREEMENT

This SUPPLEMENT, dated as of      ,      (this “Supplement”), is to the
Pledge and Security Agreement, dated as of      , 200     (as amended, supplemented, amended and
restated or otherwise modified from time to time, the “Security Agreement”), among the
Grantors (such term, and other terms used in this Supplement, to have the meanings set forth in
Article I of the Security Agreement) from time to time party thereto, in favor of NATIONAL CITY
BANK, as the administrative agent (together with its successor(s) thereto in such capacity, the
“Administrative Agent”) for each of the Secured Parties.

W I T N E S S E T H

:

WHEREAS, this Supplement is made pursuant to the Credit Agreement, dated as of August 31, 2001
(as amended, supplemented, amended and restated or otherwise modified from time to time, the
“Credit Agreement”), among the Borrower, the various financial institutions and other persons from
time to time party thereto (the “Lenders”), Credit Suisse, as Syndication Agent, and the
Administrative Agent;

WHEREAS, pursuant to the provisions of Section 7.6 of the Security Agreement, each of the
undersigned is becoming a Grantor under the Security Agreement; and

WHEREAS, each of the undersigned desires to become a “Grantor” under the Security Agreement in
order to induce the Secured Parties to continue to extend Loans and issue Letters of Credit under
the Credit Agreement;

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is
hereby acknowledged, each of the undersigned agrees, for the benefit of each Secured Party, as
follows.

SECTION 8. Party to Security Agreement, etc. In accordance with the terms of the
Security Agreement, by its signature below each of the undersigned hereby irrevocably agrees to
become a Grantor under the Security Agreement with the same force and effect as if it were an
original signatory thereto and each of the undersigned hereby (a) agrees to be bound by and comply
with all of the terms and provisions of the Security Agreement applicable to it as a Grantor and
(b) represents and warrants that the representations and warranties made by it as a Grantor
thereunder are true and correct as of the date hereof, unless stated to relate solely to an earlier
date, in which case such representations and warranties shall be true and correct as of such
earlier date. In furtherance of the foregoing, each reference to a “Grantor” and/or “Grantors” in
the Security Agreement shall be deemed to include each of the undersigned.

SECTION 9. Representations. Each of the undersigned Grantor hereby represents and
warrants that this Supplement has been duly authorized, executed and delivered by it and that this
Supplement and the Security Agreement constitute the legal, valid and binding obligation of each of
the undersigned, enforceable against it in accordance with its terms.

SECTION 10. Full Force of Security Agreement. Except as expressly supplemented
hereby, the Security Agreement shall remain in full force and effect in accordance with its terms.

SECTION 11. Severability. Wherever possible each provision of this Supplement shall
be interpreted in such manner as to be effective and valid under applicable law, but if any
provision of this Supplement shall be prohibited by or invalid under such law, such provision shall
be ineffective to the extent of such prohibition or invalidity, without invalidating the remainder
of such provision or the remaining provisions of this Supplement or the Security Agreement.

SECTION 12. Governing Law, Entire Agreement, etc. THIS SUPPLEMENT SHALL BE DEEMED TO
BE A CONTRACT MADE UNDER AND GOVERNED BY THE INTERNAL LAWS OF THE STATE OF NEW YORK (INCLUDING FOR
SUCH PURPOSE SECTIONS 5-1401 AND 5-1402 OF THE GENERAL OBLIGATIONS LAW OF THE STATE OF NEW YORK).
This Supplement and the other Credit Documents constitute the entire understanding among the
parties hereto with respect to the subject matter thereof and supersede any prior agreements,
written or oral, with respect thereto.

SECTION 13. Counterparts. This Supplement may be executed by the parties hereto in
several counterparts, each of which shall be deemed to be an original and all of which shall
constitute together but one and the same agreement.

* * * * *

19

IN WITNESS WHEREOF, each of the parties hereto has caused this Agreement to be duly executed
and delivered by its Authorized Officer as of the date first above written.

[NAME OF ADDITIONAL SUBSIDIARY]

	 	 	 	By:
     

Name:

Title:

[NAME OF ADDITIONAL SUBSIDIARY]

	 	 	 	 	 
	   By:_________________________________

	   Name:

	   Title:

	ACCEPTED AND AGREED FOR ITSELF
	 	 	 	 
	AND ON BEHALF OF THE SECURED PARTIES:

	NATIONAL CITY BANK,
as Administrative Agent
	 	 	 	 
	By:
	 	 	—	 

Name:

Title:

20

[COPY SCHEDULES FROM SECURITY AGREEMENT]

21EX-10.2

PLEDGE AND SECURITY AGREEMENT

This PLEDGE AND SECURITY AGREEMENT, dated as of April 19, 2006 (as amended, supplemented,
amended and restated or otherwise modified from time to time, this “Security Agreement”), is made
by FERRO CORPORATION, an Ohio corporation (the “Borrower”), and each of its Domestic Subsidiaries
(terms used in the preamble and the recitals have the definitions set forth in or incorporated by
reference in Article I) from time to time a party to this Security Agreement (each of the
Borrower and the Domestic Subsidiaries, individually, a “Grantor” and, collectively, the
“Grantors”), in favor of J. P. Morgan Trust Company, National Association, as Trustee (the
“Trustee”) for the benefit of the Trustee and the Holders under the Indentures (collectively, the
“Secured Parties”).

W I T N E S S E T H

:

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

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

WHEREAS, pursuant to Section 8.14 of that certain Credit Agreement, dated as of August 31,
2001 (as the same may be amended, supplemented, amended and restated or otherwise modified from
time to time, the “Credit Agreement”), by and among the Borrower, the various financial
institutions and other Persons from time to time party thereto (the “Lenders”), the Borrower is
simultaneously herewith granting security interests in the Collateral in favor of the Lenders;

WHEREAS, the Borrower and the Trustee are entering into this Security Agreement pursuant to
Section 1008 of each Indenture for the purpose of granting the Trustee equal and ratable security
interests in the Collateral set forth herein; and

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, each Grantor hereby makes the following representations and warranties to the
Trustee and hereby covenants and agrees with the Trustee, for the benefit of the Secured Parties,
as follows:

ARTICLE I

DEFINITIONS

SECTION 1.1 Certain Terms. The following terms (whether or not underscored) when used
in this Security Agreement, including its preamble and recitals, shall have the following meanings
(such definitions to be equally applicable to the singular and plural forms thereof):

“Administrative Agent” is defined in the Credit Agreement.

“Borrower” is defined in the preamble.

“Capital Stock” is defined in the Credit Agreement.

“Collateral” is defined in Section 2.1.

“Collateral Sharing Agreement” means the Collateral Sharing Agreement, dated as of April 19,
2006, (as amended, supplemented, amended and restated or otherwise modified from time to time),
among the Borrower, the other Grantors party thereto, the Trustee, and the administrative agent
under the Credit Agreement.

“Control Agreement” means an authenticated record in form and substance satisfactory to the
Trustee that provides for the Trustee to have “control” (as defined in the UCC) over certain
Collateral.

“Credit Agreement” is defined in the third recital.

“Credit Document” is defined in the Credit Agreement.

“Credit Agreement Lien” means any Lien in favor of National City Bank, as Administrative Agent
pursuant to the Credit Agreement (and any successor administrative agent(s)), for the benefit of
each Secured Party (under and as defined in the Credit Agreement) under the Credit Agreement.

“Disposition” shall have the meaning provided in the Credit Agreement.

“Distributions” means all dividends paid on Capital Stock pledged hereunder, liquidating
dividends paid on Capital Stock pledged hereunder, shares (or other designations) of Capital Stock
resulting from (or in connection with the exercise of) stock splits, reclassifications, warrants,
options, non-cash dividends, mergers, consolidations, and all other distributions (whether similar
or dissimilar to the foregoing) on or with respect to any Capital Stock constituting Collateral.

“Domestic Subsidiaries” shall have the meaning provided in the Indentures.

“General Intangibles” means all “general intangibles” and all “payment intangibles”, each as
defined in the UCC, and shall include all interest rate or currency protection or hedging
arrangements, all tax refunds, all licenses, permits, concessions and authorizations (in each case,
regardless of whether characterized as general intangibles under the UCC).

“Grantor” and “Grantors” are defined in the preamble.

“Indenture” and “Indentures” are defined in the first recital.

“Organic Document” means, relative to any Grantor, as applicable, its certificate or articles
of incorporation, articles and memorandum of association, by-laws, certificate of partnership,
partnership agreement, certificate of formation, limited liability agreement, operating agreement
and all shareholder agreements, voting trusts and similar arrangements applicable to any of such
Grantor’s Capital Stock pledged hereunder.

“Permitted Liens” shall have the meaning provided in the Credit Agreement, but shall not
include any Credit Agreement Lien.

“Secured Obligations” shall mean and include:

(i) the principal of (and premium, if any) and interest (including default interest, if
any) on any Outstanding Securities, and

(ii) all other obligations and liabilities owing by the Borrower under the Indentures
(including, without limitation, indemnities, fees and other amounts payable thereunder,
including, without limitation, the obligation of the Borrower to reimburse the Trustee for
reasonable compensation, expenses, disbursements and advances as described in Section 607 of
each Indenture), whether primary, secondary, direct, contingent, fixed or otherwise,

in all cases whether now existing, or hereafter incurred or arising, including any such interest or
other amounts incurred or arising during the pendency of any bankruptcy, insolvency,
reorganization, receivership or similar proceeding, regardless of whether allowed or allowable in
such proceeding or subject to an automatic stay under section 362(a) of the Bankruptcy Code.

“Secured Parties” is defined in the preamble.

“Securities Act” is defined in clause (a) of Section 6.2.

“Security Agreement” is defined in the preamble.

“Specified Default” means the occurrence and continuance of an Event of Default under Section
501 of each Indenture.

“Termination Date” means the earlier of the date on which (i) the secured Debt (including any
secured Debt incurred to refinance such secured Debt) which caused the Grantors to secure the
Secured Obligations either (a) has been indefeasibly paid in full or (b) is no longer secured by
any lien upon, security interest in or other encumbrance upon any assets of the Grantors, or (ii)
all Secured Obligations have been indefeasibly paid in full; provided that if at any time
secured Debt is incurred to refinance existing secured Debt, the Termination Date shall not occur
as a result of the payment or other satisfaction of the existing secured Debt.

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

SECTION 1.2 Certain Definitions. Unless otherwise defined herein or the context
otherwise requires, terms used in this Security Agreement, including its preamble and recitals,
have the meanings provided in the Indentures.

SECTION 1.3 UCC Definitions. When used herein the terms Account, Certificated
Securities, Chattel Paper, Commodity Account, Commodity Contract, Deposit Account, Document,
Electronic Chattel Paper, Equipment, Goods, Instrument, Inventory, Investment Property,
Letter-of-Credit Rights, Proceeds, Promissory Notes, Securities Account, Security Entitlement,
Supporting Obligations and Uncertificated Securities have the meaning provided in Article 8 or
Article 9, as applicable, of the UCC. Letters of Credit has the meaning provided in Section 5-102
of the UCC.

ARTICLE II

SECURITY INTEREST

SECTION 2.1 Grant of Security Interest. Each Grantor hereby grants to the Trustee,
for the benefit of the Secured Parties, a continuing security interest, and a right to set-off
against, any and all right, title and interest of such Grantor’s in and to the following property,
whether now or hereafter existing, owned or acquired by such Grantor, and wherever located
(collectively, the “Collateral”):

(a) Accounts;

(b) Chattel Paper;

(c) Deposit Accounts;

(d) Documents;

(e) General Intangibles;

(f) Goods;

(g) Instruments;

(h) Investment Property;

(i) Letter-of-Credit Rights and Letters of Credit (other than such as is collateral for
or issued subject to or in connection with the Borrower’s existing accounts receivable
securitization program);

(j) Supporting Obligations;

(k) all books, records, writings, databases, computer programs, tapes, disks, related
data processing software (owned by such Grantor or in which it has an assignable interest),
information and other property relating to, used or useful in connection with, evidencing,
embodying, incorporating or referring to, any of the foregoing in this Section or are
otherwise helpful in the collection or realization thereupon;

(l) all Proceeds of the foregoing and, to the extent not otherwise included, (A) all
payments under insurance (whether or not the Trustee is the loss payee thereof) and (B) all
tort claims; and

(m) all other property and rights of every kind and description and interests therein.

Notwithstanding the foregoing, (i) the term “Collateral” shall not include any property or
asset in which a Lien has not been granted to the Administrative Agent under the Credit Agreement
and (ii) the grant of a continuing security interest herein by each Grantor to the Trustee
described in this Section is limited to the foregoing assets set forth in clauses (a) through and
including (m) to the extent such assets constitute all or any portion of any Principal Domestic
Manufacturing Property of the Borrower or any Domestic Subsidiary, any shares of stock or Debt of
any Domestic Subsidiary and any Proceeds of the foregoing.

SECTION 2.2 Security for Secured Obligations. This Security Agreement, and the
Collateral in which the Trustee is granted a security interest hereunder by the Grantors, shall
secure the prompt payment and performance in full when due, whether by lapse of time, acceleration,
mandatory prepayment or otherwise, of the Secured Obligations.

SECTION 2.3 Grantors Remain Liable. Anything herein to the contrary notwithstanding:

(a) the Grantors will remain liable under the contracts and agreements included in the
Collateral to the extent set forth therein, and will perform all of their duties and
obligations under such contracts and agreements to the same extent as if this Security
Agreement had not been executed;

(b) the exercise by the Trustee of any of its rights hereunder will not release any
Grantor from any of its duties or obligations under any such contracts or agreements
included in the Collateral; and

(c) the Trustee will not have any obligation or liability under any contracts or
agreements included in the Collateral by reason of this Security Agreement, nor will the
Trustee be obligated to perform any of the obligations or duties of any Grantor thereunder
or to take any action to collect or enforce any claim for payment assigned hereunder.

SECTION 2.4 Intentionally omitted.

SECTION 2.5 Security Interest Absolute, etc. This Security Agreement shall in all
respects be a continuing, absolute, unconditional and irrevocable grant of security interest, and
shall remain in full force and effect until the Termination Date. All rights of the Trustee and
the security interests granted to the Trustee hereunder, and all obligations of the Grantors
hereunder, shall, in each case, be absolute, unconditional and irrevocable irrespective of:

(a) any lack of validity, legality or enforceability of either of the Indentures;

(b) the failure of the Trustee (i) to assert any claim or demand or to enforce any
right or remedy against the Borrower or any other Person (including any other Grantor) under
the provisions of either of the Indentures or otherwise, or (ii) to exercise any right or
remedy against any other guarantor (including any other Grantor) of, or collateral securing,
any Secured Obligations;

(c) any change in the time, manner or place of payment of, or in any other term of, all
or any part of the Secured Obligations, or any other extension, compromise or renewal of any
Secured Obligations;

(d) any reduction, limitation, impairment or termination of any Secured Obligations for
any reason, including any claim of waiver, release, surrender, alteration or compromise, and
shall not be subject to (and each Grantor hereby waives any right to or claim of) any
defense or setoff, counterclaim, recoupment or termination whatsoever by reason of the
invalidity, illegality, nongenuineness, irregularity, compromise, unenforceability of, or
any other event or occurrence affecting, any Secured Obligations or otherwise;

(e) any amendment to, rescission, waiver, or other modification of, or any consent to
or departure from, any of the terms of either of the Indentures;

(f) any addition, exchange or release of any Collateral or of any Person that is (or
will become) a Grantor (including the Grantors hereunder) of the Secured Obligations, or any
surrender or non-perfection of any collateral, or any amendment to or waiver or release or
addition to, or consent to or departure from, any other guaranty held by the Trustee
securing any of the Secured Obligations; or

(g) any other circumstance which might otherwise constitute a defense available to, or
a legal or equitable discharge of, the Borrower, any surety or any guarantor.

SECTION 2.6 Postponement of Subrogation. Each Grantor agrees that it will not
exercise any rights against another Grantor which it may acquire by way of rights of subrogation
under either of the Indentures or any Credit Document to which it is a party. No Grantor shall
seek or be entitled to seek any contribution or reimbursement from Borrower, in respect of any
payment made under either of the Indentures or otherwise, until following the Termination Date.
Any amount paid to such Grantor on account of any such subrogation rights prior to the Termination
Date shall be held in trust for the benefit of the Trustee and shall immediately be paid and turned
over to the Trustee in the exact form received by such Grantor (duly endorsed in favor of the
Trustee, if required), to be credited and applied against the Secured Obligations, whether matured
or unmatured, in accordance with Section 6.1. In furtherance of the foregoing, at all
times prior to the Termination Date, such Grantor shall refrain from taking any action or
commencing any proceeding against Borrower (or its successors or assigns, whether in connection
with a bankruptcy proceeding or otherwise) to recover any amounts in respect of payments made under
this Security Agreement to the Trustee.

ARTICLE III

REPRESENTATIONS AND WARRANTIES

	 	 	 	 	 
	The Grantors represent and warrant to the Trustee as set forth below.
	SECTION 3.1	 	As to Capital Stock of the Subsidiaries, Investment Property.

(a) With respect to any Domestic Subsidiary of any Grantor that is

(i) a corporation, business trust, joint stock company or similar Person, all
Capital Stock pledged hereunder issued by such Subsidiary is duly authorized and
validly issued, fully paid and non-assessable, and represented by a certificate; and

(ii) a partnership or limited liability company, no Capital Stock pledged
hereunder issued by such Subsidiary (A) is dealt in or traded on securities
exchanges or in securities markets, (B) expressly provides that such Capital Stock
is a security governed by Article 8 of the UCC or (C) is held in a Securities
Account, except, with respect to this clause (a)(ii), Capital Stock pledged
hereunder (x) for which the Trustee is the registered owner or (y) with respect to
which the issuer has agreed in an authenticated record with such Grantor and the
Trustee to comply with any instructions of the Trustee without the consent of such
Grantor.

(b) Each Grantor has delivered all Certificated Securities constituting Collateral held
by such Grantor on the Closing Date to the Trustee (or the Administrative Agent pursuant to
the Collateral Sharing Agreement), together with duly executed undated blank stock powers,
or other equivalent instruments of transfer acceptable to the Trustee.

(c) With respect to Uncertificated Securities constituting Collateral owned by any
Grantor, such Grantor has caused the issuer thereof either to (i) register the Trustee as
the registered owner of such security or (ii) agree in an authenticated record with such
Grantor and the Trustee that such issuer will comply with instructions with respect to such
security originated by the Trustee without further consent of such Grantor (any Grantor that
is an Issuer hereby acknowledges and agrees that this Security Agreement constitutes an
agreement in an authenticated record to so comply with such instructions).

(d) The percentage of the issued and outstanding Capital Stock of each Subsidiary
pledged by each Grantor hereunder is as set forth on Schedule I.

SECTION 3.2 Grantor Name, Location, etc.

(a) The jurisdiction in which each Grantor is located for purposes of Sections 9-301
and 9-307 of the UCC is set forth in Item A of Schedule II.

(b) Each location a secured party would have filed a UCC financing statement in the
five years prior to the date hereof to perfect a security interest in Equipment, Inventory
and General Intangibles owned by such Grantor is set forth in Item B of Schedule
II.

(c) The Grantors do not have any trade names other than those set forth in Item
C of Schedule II hereto.

(d) During the four months preceding the date hereof, no Grantor has been known by any
legal name different from the one set forth on the signature page hereto, nor has such
Grantor been the subject of any merger or other corporate reorganization, except as set
forth in Item D of Schedule II hereto.

(e) Each Grantor’s federal taxpayer identification number is (and, during the four
months preceding the date hereof, such Grantor has not had a federal taxpayer identification
number different from that) set forth in Item E of Schedule II hereto.

(f) The name set forth on the signature page attached hereto is the true and correct
legal name of each Grantor.

SECTION 3.3 Ownership, No Liens, etc. Each Grantor owns its Collateral free and clear
of any Lien, except for any security interest (a) created by this Security Agreement and (b) that
is a Permitted Lien or Credit Agreement Lien. No effective UCC financing statement or other filing
similar in effect covering all or any part of the Collateral is on file in any recording office,
except those filed in favor of the Trustee relating to this Security Agreement, Permitted Liens or
Credit Agreement Liens.

SECTION 3.4 Validity, etc.

(a) This Security Agreement creates a valid security interest in the Collateral
securing the payment of the Secured Obligations.

(b) Each Grantor has filed or caused to be filed all UCC-1 financing statements in the
filing office for each Grantor’s jurisdiction of organization listed in

Item A of Schedule II (collectively, the “Filing Statements”) (or has
authenticated and delivered to the Trustee the Filing Statements suitable for filing in such
offices) and has taken all other:

(i) actions necessary to obtain control of the Collateral as provided in
Sections 9-104, 9-105, 9-106 and 9-107 of the UCC; and

(ii) actions necessary to perfect the Trustee’s security interest with respect
to any Collateral evidenced by a certificate of ownership.

(c) Upon the filing of the Filing Statements with the appropriate agencies therefor the
security interests created under this Security Agreement shall constitute a perfected
security interest in the Collateral described on such Filing Statements in favor of the
Trustee to the extent that a security interest therein may be perfected by filing pursuant
to the relevant UCC, prior to all other Liens, except for Credit Agreement Liens (which
shall at all times remain pari passu to the security interests granted to the Trustee
hereunder) and Permitted Liens.

SECTION 3.5 Authorization, Approval, etc. Except as have been obtained or made and
are in full force and effect, no authorization, approval or other action by, and no notice to or
filing with, any Governmental Authority or any other third party is required either

(a) for the grant by the Grantors of the security interest granted hereby or for the
execution, delivery and performance of this Security Agreement by the Grantors;

(b) for the perfection or maintenance of the security interests hereunder including the
first priority (with respect to Common Collateral (as defined in the Collateral Sharing
Agreement) on a pari passu basis with the Credit Agreement Liens, and subject to Permitted
Liens) nature of such security interest (except with respect to the Filing Statements) or
the exercise by the Trustee of its rights and remedies hereunder; or

(c) for the exercise by the Trustee of the voting or other rights provided for in this
Security Agreement, or, except (i) with respect to any securities issued by a Subsidiary of
the Grantors, as may be required in connection with a disposition of such securities by laws
affecting the offering and sale of securities generally, the remedies in respect of the
Collateral pursuant to this Security Agreement and (ii) any “change of control” or similar
filings required by state licensing agencies.

SECTION 3.6 Best Interests. It is in the best interests of each Grantor (other than
the Borrower) to execute this Security Agreement inasmuch as such Grantor will, as a result of
being a Subsidiary of the Borrower, derive substantial direct and indirect benefits, and each
Grantor agrees that the Trustee is relying on this representation.

ARTICLE IV

COVENANTS

Each Grantor covenants and agrees that, until the Termination Date, such Grantor will perform,
comply with and be bound by the obligations set forth below.

SECTION 4.1 As to Investment Property, etc.

SECTION 4.1.1 Capital Stock of Subsidiaries. No Grantor will allow any of its
Subsidiaries, the Capital Stock of which is pledged hereunder:

(a) that is a corporation, business trust, joint stock company or similar Person, to
issue Uncertificated Securities;

(b) that is a partnership or limited liability company, to (i) issue Capital Stock that
are to be dealt in or traded on securities exchanges or in securities markets,

(ii) expressly provide in its Organic Documents that its Capital Stock are securities
governed by Article 8 of the UCC, or (iii) place such Subsidiary’s Capital Stock in a
Securities Account; and

(c) to issue Capital Stock in addition to or in substitution for the Capital Stock
pledged hereunder, except to such Grantor (and such Capital Stock is immediately pledged and
delivered to the Trustee pursuant to the terms of this Security Agreement).

SECTION 4.1.2 Investment Property (other than Certificated Securities).

(a) With respect to any Deposit Accounts, Securities Accounts, Commodity Accounts,
Commodity Contracts or Security Entitlements constituting Investment Property owned or held
by any Grantor, such Grantor will use commercially reasonable efforts to cause the
intermediary maintaining such Investment Property to execute a Control Agreement relating to
such Investment Property pursuant to which such intermediary agrees to comply with the
Trustee’s instructions with respect to such Investment Property without further consent by
such Grantor.

(b) With respect to any Uncertificated Securities (other than Uncertificated Securities
credited to a Securities Account) constituting Investment Property owned or held by any
Grantor, such Grantor will use commercially reasonable efforts to cause the issuer of such
securities to either (i) register the Trustee as the registered owner thereof on the books
and records of the issuer or (ii) execute a Control Agreement relating to such Investment
Property pursuant to which the issuer agrees to comply with the Trustee’s instructions with
respect to such Uncertificated Securities without further consent by such Grantor.

SECTION 4.1.3 Certificated Securities (Stock Powers). Each Grantor agrees that all
Certificated Securities, including any Capital Stock delivered by such Grantor pursuant to this
Security Agreement, will be accompanied by duly executed undated blank stock powers, or other
equivalent instruments of transfer reasonably acceptable to the Trustee.

SECTION 4.1.4 Continuous Pledge. Each Grantor will (subject to the terms of the
Credit Agreement and the Indentures) deliver to the Trustee and at all times keep pledged to the
Trustee pursuant hereto, on a first-priority, perfected basis all Investment Property, all
Dividends and Distributions with respect thereto, all Payment Intangibles to the extent they are
evidenced by a Document, Instrument, Promissory Note or Chattel Paper, and all interest and
principal with respect to such Payment Intangibles, and all Proceeds and rights from time to time
received by or distributable to such Grantor in respect of any of the foregoing Collateral. Each
Grantor agrees that it will, promptly following receipt thereof, deliver to the Trustee possession
of all originals of negotiable Documents, Instruments, Promissory Notes and Chattel Paper that it
acquires following the date hereof.

SECTION 4.1.5 Voting Rights; Dividends, etc. Each Grantor agrees:

(a) promptly upon receipt of notice of the occurrence and continuance of a Specified
Default from the Trustee and without any request therefor by the Trustee, so long as such
Specified Default shall continue, to deliver (properly endorsed where required hereby or
requested by the Trustee) to the Trustee all Dividends and Distributions with respect to
Investment Property, all interest, principal, other cash payments on Payment Intangibles,
and all Proceeds of the Collateral, in each case thereafter received by such Grantor, all of
which shall be held by the Trustee as additional Collateral; and

(b) with respect to Collateral consisting of general partner interests or limited
liability company interests, to promptly modify its Organic Documents to admit the Trustee
as a general partner or member, as applicable, immediately upon the occurrence and
continuance of a Specified Default and so long as the Trustee has notified such Grantor of
the Trustee’s intention to exercise its voting power under this clause,

(i) that the Trustee may exercise (to the exclusion of such Grantor) the voting
power and all other incidental rights of ownership with respect to any Investment
Property constituting Collateral and such Grantor hereby grants the Trustee an
irrevocable proxy, exercisable under such circumstances, to vote such Investment
Property; and

(ii) to promptly deliver to the Trustee such additional proxies and other
documents as may be necessary to allow the Trustee to exercise such voting power.

All dividends, Distributions, interest, principal, cash payments, Payment Intangibles and Proceeds
that may at any time and from time to time be held by such Grantor, but which such Grantor is then
obligated to deliver to the Trustee, shall, until delivery to the Trustee, be held by such Grantor
separate and apart from its other property in trust for the Trustee. The Trustee agrees that
unless a Specified Default shall have occurred and be continuing and the Trustee shall have given
the notice referred to in clause (b), such Grantor will have the exclusive voting power
with respect to any Investment Property constituting Collateral and the Trustee will, upon the
written request of such Grantor, promptly deliver such proxies and other documents, if any, as
shall be reasonably requested by such Grantor which are necessary to allow such Grantor to exercise
that voting power; provided that no vote shall be cast, or consent, waiver, or ratification
given, or action taken by such Grantor that would impair any such Collateral or be inconsistent
with or violate any provision of either of the Indentures.

SECTION 4.2 Change of Name, etc. No Grantor will change its name or place of
incorporation or organization or federal taxpayer identification number except upon 30 days’ prior
written notice to the Trustee.

SECTION 4.3 As to Grantors’ Use of Collateral.

(a) Subject to clause (b), each Grantor (i) may in the ordinary course of its
business, at its own expense, sell, lease or furnish under the contracts of service any of
the Inventory normally held by such Grantor for such purpose, and use and consume, in the
ordinary course of its business, any raw materials, work in process or materials normally
held by such Grantor for such purpose, (ii) will, at its own expense, endeavor to collect,
as and when due, all amounts due with respect to any of the Collateral, including the taking
of such action with respect to such collection as the Trustee may request following the
occurrence of a Specified Default or, in the absence of such request, as such Grantor may
deem reasonably advisable, and (iii) may grant, in the ordinary course of business, to any
party obligated on any of the Collateral, any rebate, refund or allowance to which such
party may be lawfully entitled, and may accept, in connection therewith, the return of
Goods, the sale or lease of which shall have given rise to such Collateral.

(b) At any time following the occurrence and during the continuance of a Specified
Default, whether before or after the maturity of any of the Secured Obligations, the Trustee
may (i) revoke any or all of the rights of each Grantor set forth in clause (a),
(ii) notify any parties obligated on any of the Collateral to make payment to the Trustee of
any amounts due or to become due thereunder and (iii) enforce collection of any of the
Collateral by suit or otherwise and surrender, release, or exchange all or any part thereof,
or compromise or extend or renew for any period (whether or not longer than the original
period) any indebtedness thereunder or evidenced thereby.

(c) Upon request of the Trustee following the occurrence and during the continuance of
a Specified Default, each Grantor will, at its own expense, notify any parties obligated on
any of the Collateral to make payment to the Trustee of any amounts due or to become due
thereunder.

(d) At any time following the occurrence and during the continuation of a Specified
Default, the Trustee may endorse, in the name of such Grantor, any item, howsoever received
by the Trustee, representing any payment on or other Proceeds of any of the Collateral.

SECTION 4.4 Further Assurances, etc. Each Grantor agrees that, from time to time at
its own expense, it will promptly execute and deliver all further instruments and documents, and
take all further action, that may be necessary or that the Trustee may request, in order to
perfect, preserve and protect any security interest granted or purported to be granted hereby or to
enable the Trustee to exercise and enforce its rights and remedies hereunder with respect to any
Collateral. Without limiting the generality of the foregoing, such Grantor will

(a) from time to time upon the request of the Trustee, promptly deliver to the Trustee
such stock powers, instruments and similar documents, satisfactory in form and substance to
the Trustee, with respect to such Collateral as the Trustee may request and will, from time
to time upon the request of the Trustee, after the occurrence and during the continuance of
any Specified Default, promptly transfer any securities constituting Collateral into the
name of any nominee designated by the Trustee; if any Collateral shall be evidenced by an
Instrument, negotiable Document, Promissory Note or tangible Chattel Paper, deliver and
pledge to the Trustee hereunder such Instrument, negotiable Document, Promissory Note or
tangible Chattel Paper duly endorsed and accompanied by duly executed instruments of
transfer or assignment, all in form and substance satisfactory to the Trustee;

(b) file (and hereby authorizes the Trustee to file) such Filing Statements,
continuation statements or correction statements, or amendments thereto, and such other
instruments or notices (including any assignment of claim form under or pursuant to the
federal assignment of claims statute, 31 U.S.C. § 3726, any successor or amended version
thereof or any regulation promulgated under or pursuant to any version thereof), as may be
necessary or that the Trustee may request in order to perfect and preserve the security
interests and other rights granted or purported to be granted to the Trustee hereby;

(c) deliver to the Trustee and at all times keep pledged to the Trustee pursuant
hereto, on a first-priority, perfected basis, at the request of the Trustee, all Investment
Property constituting Collateral, all Distributions with respect thereto, and all interest
and principal with respect to Promissory Notes, and all Proceeds and rights from time to
time received by or distributable to such Grantor in respect of any of the foregoing
Collateral;

(d) not take or omit to take any action the taking or the omission of which would
result in any impairment or alteration of any obligation of the maker of any Payment
Intangible or other Instrument constituting Collateral, except as provided in Section
4.3;

(e) not create any tangible Chattel Paper without placing a legend on such tangible
Chattel Paper acceptable to the Trustee indicating that the Trustee has a security interest
in such Chattel Paper;

(f) furnish to the Trustee statements and schedules further identifying and describing
the Collateral and such other reports in connection with the Collateral as the Trustee may
from time to time request, all in reasonable detail; and

(g) do all things requested by the Trustee in accordance with this Security Agreement
in order to enable the Trustee to have and maintain control over the Collateral consisting
of Investment Property, Deposit Accounts, Letter-of-Credit-Rights and Electronic Chattel
Paper.

With respect to the foregoing and the grant of the security interest hereunder, each Grantor hereby
authorizes the Trustee to file one or more financing statements, continuation statements or
correction statements, and amendments thereto, relative to all or any part of the Collateral. Each
Grantor agrees that a carbon, photographic or other reproduction of this Security Agreement or any
UCC financing statement covering the Collateral or any part thereof shall be sufficient as a UCC
financing statement where permitted by law. Each Grantor hereby authorizes the Trustee to file
financing statements describing as the collateral covered thereby “all of the debtor’s personal
property or assets, subject to the limitations described in that certain Pledge and Security
Agreement dated April 19, 2006” or words to that effect, notwithstanding that such wording may be
broader in scope than the Collateral described in this Security Agreement.

ARTICLE V

THE TRUSTEE

SECTION 5.1 Trustee Appointed Attorney-in-Fact. Each Grantor hereby irrevocably
appoints the Trustee its attorney-in-fact, with full authority in the place and stead of such
Grantor and in the name of such Grantor or otherwise, from time to time in the Trustee’s
discretion, following the occurrence and during the continuance of a Specified Default, to take any
action and to execute any instrument which the Trustee may deem necessary or reasonably advisable
to accomplish the purposes of this Security Agreement, including:

(a) to ask, demand, collect, sue for, recover, compromise, receive and give acquittance
and receipts for moneys due and to become due under or in respect of any of the Collateral;

(b) to receive, endorse, and collect any drafts or other Instruments, Documents and
Chattel Paper, in connection with clause (a) above;

(c) to file any claims or take any action or institute any proceedings which the
Trustee may deem necessary or desirable for the collection of any of the Collateral or
otherwise to enforce the rights of the Trustee with respect to any of the Collateral; and

(d) to perform the affirmative obligations of such Grantor hereunder.

Each Grantor hereby acknowledges, consents and agrees that the power of attorney granted pursuant
to this Section is irrevocable and coupled with an interest.

SECTION 5.2 Trustee May Perform. If any Grantor fails to perform any agreement
contained herein, the Trustee may itself perform, or cause performance of, such agreement, and the
expenses of the Trustee incurred in connection therewith shall be payable by such Grantor pursuant
to the terms of the Indentures.

SECTION 5.3 Trustee Has No Duty. The powers conferred on the Trustee hereunder are
solely to protect its interest in the Collateral and shall not impose any duty on it to exercise
any such powers. Except for reasonable care of any Collateral in its possession and the accounting
for moneys actually received by it hereunder, the Trustee shall have no duty as to any Collateral
or responsibility for

(a) ascertaining or taking action with respect to calls, conversions, exchanges,
maturities, tenders or other matters relative to any Investment Property, whether or not the
Trustee has or is deemed to have knowledge of such matters, or

(b) taking any necessary steps to preserve rights against prior parties or any other
rights pertaining to any Collateral.

SECTION 5.4 Reasonable Care. The Trustee is required to exercise reasonable care in
the custody and preservation of any of the Collateral in its possession; provided that the
Trustee shall be deemed to have exercised reasonable care in the custody and preservation of any of
the Collateral if it takes such action for that purpose as each Grantor reasonably requests in
writing at times other than upon the occurrence and during the continuance of any Specified
Default, but failure of the Trustee to comply with any such request at any time shall not in itself
be deemed a failure to exercise reasonable care.

ARTICLE VI

REMEDIES

SECTION 6.1 Certain Remedies. If any Specified Default shall have occurred and be
continuing:

(a) The Trustee may exercise in respect of the Collateral, in addition to other rights
and remedies provided for herein or otherwise available to it, all the rights and remedies
of a secured party on default under the UCC (whether or not the UCC applies to the affected
Collateral) and also may

(i) take possession of any Collateral not already in its possession without
demand and without legal process;

(ii) require each Grantor to, and each Grantor hereby agrees that it will, at
its expense and upon request of the Trustee forthwith, assemble all or part of the
Collateral as directed by the Trustee and make it available to the Trustee at a
place to be designated by the Trustee that is reasonably convenient to both parties,

(iii) enter onto the property where any Collateral is located and take
possession thereof without demand and without legal process;

(iv) without notice except as specified below, lease, license, sell or
otherwise dispose of the Collateral or any part thereof in one or more parcels at
public or private sale, at any of the Trustee’s offices or elsewhere, for cash, on
credit or for future delivery, and upon such other terms as the Trustee may deem
commercially reasonable. Each Grantor agrees that, to the extent notice of sale
shall be required by law, at least ten days’ prior notice to such Grantor of the
time and place of any public sale or the time after which any private sale is to be
made shall constitute reasonable notification. The Trustee shall not be obligated
to make any sale of Collateral regardless of notice of sale having been given. The
Trustee may adjourn any public or private sale from time to time by announcement at
the time and place fixed therefor, and such sale may, without further notice, be
made at the time and place to which it was so adjourned.

(b) All cash Proceeds received by the Trustee in respect of any sale of, collection
from, or other realization upon, all or any part of the Collateral shall be applied by the
Trustee against all or any part of the Secured Obligations in accordance with the terms of
the Indentures.

(c) The Trustee may

(i) transfer all or any part of the Collateral into the name of the Trustee or
its nominee, with or without disclosing that such Collateral is subject to the Lien
hereunder,

(ii) notify the parties obligated on any of the Collateral to make payment to
the Trustee of any amount due or to become due thereunder,

(iii) enforce collection of any of the Collateral by suit or otherwise, and
surrender, release or exchange all or any part thereof, or compromise or extend or
renew for any period (whether or not longer than the original period) any
obligations of any nature of any party with respect thereto,

(iv) endorse any checks, drafts, or other writings in any Grantor’s name to
allow collection of the Collateral,

(v) take control of any Proceeds of the Collateral, and

(vi) execute (in the name, place and stead of any Grantor) endorsements,
assignments, stock powers and other instruments of conveyance or transfer with
respect to all or any of the Collateral.

SECTION 6.2 Securities Laws. If the Trustee shall determine to exercise its right to
sell all or any of the Collateral that are Capital Stock pursuant to Section 6.1, each
Grantor agrees that, upon request of the Trustee, each Grantor will, at its own expense:

(a) execute and deliver, and cause (or, with respect to any issuer which is not a
Subsidiary of such Grantor, use commercially reasonable efforts to cause) each issuer of the
Collateral contemplated to be sold and the directors and officers thereof to execute and
deliver, all such instruments and documents, and do or cause to be done all such other acts
and things, as may be necessary or, in the opinion of the Trustee, reasonably advisable to
register such Collateral under the provisions of the Securities Act of 1933, as from time to
time amended (the “Securities Act”), and cause the registration statement relating thereto
to become effective and to remain effective for such period as prospectuses are required by
law to be furnished, and to make all amendments and supplements thereto and to the related
prospectus which, in the opinion of the Trustee, are necessary or reasonably advisable, all
in conformity with the requirements of the Securities Act and the rules and regulations of
the Securities and Exchange Commission applicable thereto, or use its commercially
reasonable efforts to exempt the Collateral under the state securities or “Blue Sky” laws
and to obtain all necessary governmental approvals for the sale of the Collateral, as
requested by the Trustee;

(b) if necessary in order to effectuate such a registration or exemption, cause (or,
with respect to any issuer that is not a Subsidiary of such Grantor, use its commercially
reasonable efforts to cause) each such issuer to make available to its security holders, as
soon as practicable, an earnings statement that will satisfy the provisions of Section 11(a)
of the Securities Act; and

(c) do or cause to be done all such other acts and things as may be necessary to make
such sale of the Collateral or any part thereof valid and binding and in compliance with
applicable law.

Each Grantor acknowledges the impossibility of ascertaining the amount of damages that
would be suffered by the Trustee by reason of the failure by such Grantor to perform any of
the covenants contained in this Section and consequently agrees that, if such Grantor shall
fail to perform any of such covenants, it shall pay, as liquidated damages and not as a
penalty, an amount equal to the value (as determined by the Trustee) of such Collateral on
the date the Trustee shall demand compliance with this Section.

SECTION 6.3 Compliance with Restrictions. Each Grantor agrees that in any sale of any
of the Collateral whenever a Specified Default shall have occurred and be continuing, the Trustee
is hereby authorized to comply with any limitation or restriction in connection with such sale as
it may be advised by counsel is necessary in order to avoid any violation of any right(s) of any
third Person or applicable law (including compliance with such procedures as may restrict the
number of prospective bidders and purchasers, require that such prospective bidders and purchasers
have certain qualifications, and restrict such prospective bidders and purchasers to Persons who
will represent and agree that they are purchasing for their own account for investment and not with
a view to the distribution or resale of such Collateral), or in order to obtain any required
approval of the sale or of the purchaser by any third Person or any Governmental Authority or
official, and such Grantor further agrees that such compliance shall not result in such sale being
considered or deemed not to have been made in a commercially reasonable manner, nor shall the
Trustee be liable nor accountable to such Grantor for any discount allowed by the reason of the
fact that such Collateral is sold in compliance with any such limitation or restriction.

SECTION 6.4 Protection of Collateral. The Trustee may from time to time, at its
option, perform any act which any Grantor fails to perform after being requested in writing so to
perform (it being understood that no such request need be given after the occurrence and during the
continuance of a Specified Default) and the Trustee may from time to time, but shall not be
obligated to, take any other action which the Trustee deems necessary for the maintenance,
preservation or protection of any of the Collateral or of its security interest therein.

ARTICLE VII

MISCELLANEOUS PROVISIONS

SECTION 7.1 [Intentionally Omitted].

SECTION 7.2 Binding on Successors, Transferees and Assigns; Assignment. This Security
Agreement shall remain in full force and effect until the Termination Date has occurred, shall be
binding upon the Grantors and their successors, transferees and assigns and shall inure to the
benefit of and be enforceable by the Trustee and its successors, transferees and assigns;
provided that no Grantor may (unless otherwise permitted under the terms of the Indentures,
the Credit Agreement or this Security Agreement) assign any of its obligations hereunder without
the prior written consent of the Trustee.

SECTION 7.3 Amendments, etc. No amendment to or waiver of any provision of this
Security Agreement, nor consent to any departure by any Grantor from its obligations under this
Security Agreement, shall in any event be effective unless the same shall be in writing and signed
by the Trustee and the Grantors and then such waiver or consent shall be effective only in the
specific instance and for the specific purpose for which given.

SECTION 7.4 Notices. All notices and other communications provided for hereunder
shall be in writing or by facsimile and addressed, delivered or transmitted to the appropriate
party at the address or facsimile number of such party specified below or at such other address or
facsimile number as may be designated by such party in a notice to the other party.

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

	 
	 	One Oxford Centre

	 
	 	301 Grant Street, Suite 1100
	 
	 	Pittsburgh, PA 15219

	 
	 	Facsimile:  (412) 291-2070

	 
	 	Attention: Ms. Bridget M. Schessler

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

	 
	 	P.O. Box 165020

	 
	 	Columbus, Ohio 43216-5020

	 
	 	Facsimile:  614-462-5135

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

	If to the Borrower:
	 	Ferro Corporation

	 
	 	1000 Lakeside Avenue
	 
	 	Cleveland, Ohio 44114

	 
	 	Attn:  General Counsel

	 
	 	Fax:  216-875-7275

	With copies to:
	 	Baker & Hostetler LLP

	 
	 	1900 E. 9th St.
	 
	 	Suite 3200

	 
	 	Cleveland, Ohio 44114

	 
	 	Facsimile: 216-696-0740

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

Any notice or other communication, if mailed and properly addressed with postage prepaid or if
properly addressed and sent by pre-paid courier service, shall be deemed given when received; any
such notice or other communication, if transmitted by facsimile, shall be deemed given when
transmitted and electronically confirmed.

SECTION 7.5 Release of Liens. Upon (a) the Disposition of Collateral in accordance
with the Indentures or the Credit Agreement or (b) the occurrence of the Termination Date, the
security interests granted herein shall automatically terminate with respect to (i) such Collateral
(in the case of clause (a)) or (ii) all Collateral (in the case of clause (b)).
Upon any such Disposition or termination, the Trustee will, at the Grantors’ sole expense, deliver
to the Grantors, without any representations, warranties or recourse of any kind whatsoever, all
Collateral held by the Trustee hereunder, and execute and deliver to the Grantors such documents as
the Grantors shall reasonably request to evidence such termination.

SECTION 7.6 Additional Grantors. Upon the execution and delivery by any other Person
of a supplement in the form of Annex I hereto, such Person shall become a “Grantor”
hereunder with the same force and effect as if it were originally a party to this Security
Agreement and named as a “Grantor” hereunder. The execution and delivery of such supplement shall
not require the consent of any other Grantor hereunder, and the rights and obligations of each
Grantor hereunder shall remain in full force and effect notwithstanding the addition of any new
Grantor as a party to this Security Agreement.

SECTION 7.7 No Waiver; Remedies. In addition to, and not in limitation of
Section 2.5, no failure on the part of the Trustee 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. The remedies herein provided are cumulative and not exclusive of any remedies provided by
law.

SECTION 7.8 Headings. The various headings of this Security Agreement are inserted
for convenience only and shall not affect the meaning or interpretation of this Security Agreement
or any provisions thereof.

SECTION 7.9 Severability. Any provision of this Security Agreement which is
prohibited or unenforceable in any jurisdiction shall, as to such provision and such jurisdiction,
be ineffective to the extent of such prohibition or unenforceability without invalidating the
remaining provisions of this Security Agreement or affecting the validity or enforceability of such
provision in any other jurisdiction.

SECTION 7.10 Governing Law, Entire Agreement, etc. THIS SECURITY AGREEMENT SHALL BE
DEEMED TO BE A CONTRACT MADE UNDER AND GOVERNED BY THE INTERNAL LAWS OF THE STATE OF OHIO, EXCEPT
TO THE EXTENT THAT THE PERFECTION, EFFECT OF PERFECTION OR NONPERFECTION, AND PRIORITY OF THE
SECURITY INTEREST HEREUNDER, OR REMEDIES HEREUNDER, IN RESPECT OF ANY PARTICULAR COLLATERAL ARE
GOVERNED BY THE LAWS OF A JURISDICTION OTHER THAN THE STATE OF OHIO. This Security Agreement, the
Indentures and the Collateral Sharing Agreement constitute the entire understanding among the
parties hereto with respect to the subject matter hereof and thereof and supersede any prior
agreements, written or oral, with respect thereto.

SECTION 7.11 Counterparts. This Security Agreement may be executed by the parties
hereto in several counterparts, each of which shall be deemed to be an original and all of which
shall constitute together but one and the same agreement. Delivery of an executed counterpart of a
signature page to this Security Agreement by facsimile shall be effective as delivery of a manually
executed counterpart of this Security Agreement.

SECTION 7.12 Collateral Sharing Agreement. Reference is hereby made to the Collateral
Sharing Agreement. Anything in this Security Agreement, the Indentures or the Credit Agreement to
the contrary notwithstanding, the terms and conditions of the Collateral Sharing Agreement shall
govern the relative rights and obligations of the Trustee and the Administrative Agent, each Lender
and each Letter of Credit Issuer (together with their respective successors and assigns) under the
Credit Agreement

1

IN WITNESS WHEREOF, each of the parties hereto has caused this Security Agreement to be
duly executed and delivered by its Authorized Officer as of the date first above written.

FERRO CORPORATION

	 	 	 	By:

Name: Thomas M. Gannon

Title: Chief Financial Officer

FERRO ELECTRONIC MATERIALS INC.

	 	 	 	By:
     

Name: Rhonda S. Ferguson

Title: Assistant Secretary

FERRO PFANSTIEHL LABORATORIES, INC.

	 	 	 	By:
     

Name: Rhonda S. Ferguson

Title: Assistant Secretary

FERRO COLOR & GLASS CORPORATION

	 	 	 	By:
     

Name: Rhonda S. Ferguson

Title: Secretary

J. P. MORGAN TRUST COMPANY, NATIONAL ASSOCIATION, as
Trustee,

	 	 	 	By:
     

Name:

Title:

2

SCHEDULE I

to Security Agreement

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Name of Grantor: Ferro	 	 	 	 	 	 	 	 	 	 
	Corporation	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	Common Stock
	 	 	 	 	 	 	 	 	 	 	Authorized	 	Outstanding	 	 
	Issuer (corporate)	 	Cert. #	 	# of Shares	 	Shares	 	Shares	 	% of Shares Pledged
	Ferro Electronic Materials Inc.
	 		3		 		100		 		100		 		100		 		100	%
	Ferro Pfanstiehl Laboratories, Inc.
(class A)
	 		A4, A5		 		4800, 100		 		20,000		 		4900		 		100	%
	Ferro Pfanstiehl Laboratories, Inc.
(class B)
	 		B13		 		38,400		 		180,000		 		38,400		 		100	%
	Ferro Color & Glass Corporation
	 		7		 		10		 		100		 		10		 		100	%

                                                               Limited Liability Company Interests

                 Issuer (limited                 % of Limited Liability            Type of Limited Liability
                 liability company)              Company Interests                 Company Interests Pledged
                                                 Pledged

     None.

	 	 	 	 	 	 	 
	 	 	 	 	Partnership Interests
	 	 	Issuer (partnership)	 	% of Partnership	 	% of Partnership
	 	 	 	 	Interests Owned	 	Interests Pledged
	None.
	 	 	 	 
	 
	 	 	 	 	 	 

3

SCHEDULE II

to Security Agreement

	Item A.	 	Location of each Grantor.

	 	 	 
	Name of Grantor:

	 	Location for purposes of UCC:
	 

	 	 
	 
	 	 
	Ferro Corporation

	 	Ohio.
	 

	 	 
	 
	 	 
	Ferro Electronic Materials Inc.

	 	Delaware.
	
 
	 	 
	 
	 	 
	Ferro Pfanstiehl Laboratories, Inc.

	 	Delaware.
	
 
	 	 
	 
	 	 
	Ferro Color & Glass Corporation

	 	Pennsylvania.
	
 
	 	 

	Item B.	 	Filing locations last five years.

	 	 	 
	Name of Grantor:

	 	Filing locations last five years:
	 

	 	 
	 
	 	 
	Ferro Corporation

	 	Ohio, New Jersey, Louisiana,

Texas, Indiana.
	 

	 	 
	 
	 	 
	Ferro Electronic Materials Inc.

	 	Ohio, New York, New Jersey,

California.
	
 
	 	 
	 
	 	 
	Ferro Pfanstiehl Laboratories,

Inc.

	 	

Ohio, Illinois.
	
 
	 	 
	 
	 	 
	Ferro Color & Glass Corporation

	 	Ohio, Pennsylvania, Georgia.
	
 
	 	 

	Item C.	 	Trade names.

	 	 	 
	Name of Grantor:

	 	Trade Names:
	 

	 	 
	 
	 	 
	Ferro Corporation

	 	Ferro Corporation
	 

	 	 
	 
	 	 
	Ferro Electronic Materials Inc.

	 	Ferro Electronic Materials Inc.
	 
	 	 
	Ferro Pfanstiehl Laboratories,

Inc.

	 	

Ferro Pfanstiehl Laboratories, Inc.
	
 
	 	 
	 
	 	 
	Ferro Color & Glass Corporation

	 	None.
	
 
	 	 

	Item D.	 	Merger or other corporate reorganization.

	 	 	 
	Name of Grantor:

	 	Merger or other corporate

reorganization:
	 

	 	 
	 
	 	 
	Ferro Corporation

	 	None.
	 

	 	 
	 
	 	 
	Ferro Electronic Materials Inc.

	 	None.
	
 
	 	 
	 
	 	 
	Ferro Pfanstiehl Laboratories, Inc.

	 	None.
	
 
	 	 
	 
	 	 
	Ferro Color & Glass Corporation

	 	None.
	
 
	 	 

	Item E.	 	Taxpayer ID numbers.

	 	 	 	 	 
	Name of Grantor:
	 	Taxpayer ID numbers:

	 
	 	 	 	 
	Ferro Corporation
	 		34-0217820	
	 
	 	 	 	 
	Ferro Electronic Materials, Inc.
	 		22-2269844	
	 
	 	 	 	 
	Ferro Pfanstiehl Laboratories, Inc.
	 		36-2269966	
	 
	 	 	 	 
	Ferro Color & Glass Corporation
	 		25-1703763	
	 
	 	 	 	 

  

101282342.1, Trustee security agreement schedule

4

ANNEX I

to Security Agreement

SUPPLEMENT TO

PLEDGE AND SECURITY AGREEMENT

This SUPPLEMENT, dated as of      ,      (this “Supplement”), is to the Pledge and
Security Agreement, dated as of April 19, 2006 (as amended, supplemented, amended and restated or
otherwise modified from time to time, the “Security Agreement”), among the Grantors (such term, and
other terms used in this Supplement, to have the meanings set forth in Article I of the Security
Agreement) from time to time party thereto, in favor of J. P. MORGAN TRUST COMPANY, NATIONAL
ASSOCIATION, as Trustee (the “Trustee”) for the benefit of the Trustee and the Holders under the
Indentures (collectively, the “Secured Parties”).

W I T N E S S E T H

:

WHEREAS, this Agreement is made pursuant to Section 1008 of (a) that certain Indenture dated
as of May 1, 1993, between the Ferro Corporation (the “Borrower”) and the Trustee
(successor-in-interest to Society National Bank), as the same may be amended, supplemented, amended
and restated or otherwise modified from time to time, and (b) that certain Indenture dated as of
March 25, 1998, between the Borrower and the Trustee (successor-in-interest to Chase Manhattan
Trust Company, National Association), as the same may be amended, supplemented, amended and
restated or otherwise modified from time to time (each an “Indenture” and, collectively, the
“Indentures”).

WHEREAS, pursuant to the provisions of Section 7.6 of the Security Agreement, each of the
undersigned is becoming a Grantor under the Security Agreement; and

WHEREAS, each of the undersigned desires to become a “Grantor” under the Security Agreement;

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is
hereby acknowledged, each of the undersigned agrees, for the benefit of the Trustee, on behalf of
the Secured Parties, as follows.

SECTION 1. Party to Security Agreement, etc. In accordance with the terms of the
Security Agreement, by its signature below each of the undersigned hereby irrevocably agrees to
become a Grantor under the Security Agreement with the same force and effect as if it were an
original signatory thereto and each of the undersigned hereby (a) agrees to be bound by and comply
with all of the terms and provisions of the Security Agreement applicable to it as a Grantor and
(b) represents and warrants that the representations and warranties made by it as a Grantor
thereunder are true and correct as of the date hereof, unless stated to relate solely to an earlier
date, in which case such representations and warranties shall be true and correct as of such
earlier date. In furtherance of the foregoing, each reference to a “Grantor” and/or “Grantors” in
the Security Agreement shall be deemed to include each of the undersigned.

SECTION 2. Representations. Each of the undersigned Grantor hereby represents and
warrants that this Supplement has been duly authorized, executed and delivered by it and that this
Supplement and the Security Agreement constitute the legal, valid and binding obligation of each of
the undersigned, enforceable against it in accordance with its terms.

SECTION 3. Full Force of Security Agreement. Except as expressly supplemented
hereby, the Security Agreement shall remain in full force and effect in accordance with its terms.

SECTION 4. Severability. Wherever possible each provision of this Supplement shall
be interpreted in such manner as to be effective and valid under applicable law, but if any
provision of this Supplement shall be prohibited by or invalid under such law, such provision shall
be ineffective to the extent of such prohibition or invalidity, without invalidating the remainder
of such provision or the remaining provisions of this Supplement or the Security Agreement.

SECTION 5. Governing Law, Entire Agreement, etc. THIS SUPPLEMENT SHALL BE DEEMED TO
BE A CONTRACT MADE UNDER AND GOVERNED BY THE INTERNAL LAWS OF THE STATE OF OHIO. This Supplement,
the Security Agreement, the Collateral Sharing Agreement and the Indentures constitute the entire
understanding among the parties hereto with respect to the subject matter thereof and supersede any
prior agreements, written or oral, with respect thereto.

SECTION 6. Counterparts. This Supplement may be executed by the parties hereto in
several counterparts, each of which shall be deemed to be an original and all of which shall
constitute together but one and the same agreement.

* * * * *

5

IN WITNESS WHEREOF, each of the parties hereto has caused this Agreement to be duly executed
and delivered by its Authorized Officer as of the date first above written.

[NAME OF ADDITIONAL SUBSIDIARY]

	 	 	 	By:
     

Name:

Title:

[NAME OF ADDITIONAL SUBSIDIARY]

	 	 	 	By:
     

Name:

Title:

J. P. MORGAN TRUST COMPANY,

NATIONAL ASSOCIATION, as Trustee,

	 	 	By:      

Name:

Title:

6

[COPY SCHEDULES FROM SECURITY AGREEMENT]

101266229, Ferro — Trustee Pledge and Sec Agmt — 04-11-06

7

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